Contrary to frequent reports from some political and economic analysts the American Free Enterprise system is NOT going into lockdown mode in 2020. Regardless of your political persuasions or news stories to the contrary American business and small business, in particular, are poised for a big year in 2020.
Sandler Training in Lone Tree, Colorado maintains an outlook on the coming New Year that is 180 degrees different from the “doom and gloom” projections currently being published such as surveys from Wells Fargo and Gallup. One survey of 607 small business owners, conducted the week after the latest Presidential election, reflected small business warnings of less revenue, more forecasted layoffs, and projections of reduced capital spending and cash flow. Below are the top three reasons why Sandler Training by SalesGrowth MD, Inc. believes 2018 could be the BEST year your business has ever experienced.
REASON #1: The Glass is Half Full Effect- There are two distinctly different approaches to small business operation. There are firms that will react to economic uncertainty in a conservative manner by reducing capital spending, reducing head counts, reducing marketing budgets, etc. This “glass is half empty” approach is designed to “ride out the storm” and hold on to existing market share in the process. The “glass is half full” approach employs exactly the opposite strategy. Just as in the downturn of 2008-2010 these firms will put MORE emphasis on sales and marketing initiatives enabling them to prosper by moving market share away from “glass is half empty” competitors. Most small businesses are still “lean and mean” from the last economic recession and poised for success.
REASON #2: Economic Alchemy- Economist Paul Zane Pilzer coined the term “economic alchemy” in reference to what he cited as “unlimited natural resources”. His assertion was that before dire predictions such as running out of oil became true, science would produce a way to make such effective use of the natural resource as to prolong the consumption of the resource to infinity ie: cars that get 60 miles to the gallon. American Small Business has leveraged this principle for years. For every financial barrier presented to operating a small business profitably such as health care regulation, etc. the “economic alchemy” theory suggests that small businesses will find a way to navigate around the “financial barrier” rather than be crushed by it. Many will sit on the sidelines worrying about “potential” barriers while other businesses will trust the “Economic Alchemy” effect and move full steam ahead as the barrier fails to impact small business as originally feared.
REASON #3: Entrepreneurs Don’t Accept Negative Data- No matter the odds, no matter the economic outlook, a small business continues to grow. According to data from The Kauffman Foundation there continues to be approximately 320 new businesses started each month for every 100,000 people in the U.S. or around 543,000 new U.S. businesses a MONTH! That is a lot of belief that opportunity is out there if you choose to search it out.