Two Converging Trends That Could Screw Up 2012 For You

Two Converging Trends That Could Screw Up 2012 For You

Welcome to 2012 – the year that will make or break your business!

By now you are probably sick to death of all of the ‘Make 2012 Your Best Year Ever’ emails and posts on Facebook Yawn … how fast can you find the delete button?

No doubt, if you are like most small business owners, you have set their goals, mapped out their plans and charged into 2012 with renewed optimism and energy that only the new year can bring.

[Sidenote: If you haven't created a plan for your success in 2012 yet then why not?]

In developing your plans for 2012 have you taken into account the two biggest converging trends that are set to have a dramatic impact on your business?

The discussions I have had with clients recently indicates that a few are aware of these trends … but most are ignoring them. Ignore these trends at your peril!

Here is why …

All of the indicators are that 2012 will see a huge shake up of the small business sector.

There will be winners who emerge out of it … and there will be many casualties.

This article is to ensure you are on the right side of the ledger by the end of 2012.

Before I go on I want to address one key success factor …

Small business owners and entrepreneurs tend to be optimists by nature. This is great … you need to see the glass as half full right?

Well I think you are best to be neither optimist, nor pessimist … you are best to be a realist in 2012. That way you can see the glass as being neither half empty or half full. A realist knows that the glass is always full. (Think about it).

Optimism is important I agree … in 2012 however you will need a realistic view of what is tacking place in the global marketplace and take corrective action accordingly.

Note: I am not refering to the end of the Mayen Calendar or other doomsday conspiracy theories here.

So what are these two converging trends and how you can you prepare yourself for them?

Trend 1 – The Clutter Factor

The first of these trends is what I refer to as the Clutter Factor.

Today we live in a world were practically anyone can start a business.

The barriers to entry are lower than they have ever been and as a result more and more people are turning to self employment than ever before.

This is particularly true for those of us in a service type business.

Regardless of what you do today there are more start ups in the same line of business than ever before.

Now I don’t personally believe in competition … but I do believe in clutter which I will cover in a moment.

2012 is my 8th year in business yet I don’t remember the last time I spoke with a client, or prospective client who, has been in business for longer than three years.

Ove the last three years the number of small business start ups has risen dramatically. This is especially true in the micro business / solo entreprenuer space.

From all of my research and evidence it looks like 2012 will be a peak year for new start up businesses.

ie We could see as much as 30% to 50% growth in the number of new small business globally.

Now this is not really an issue for you as a business owner.

The real issue is the CLUTTER that this creates and the impact this clutter has on your ability to get the ATTENTION of your target market.

I mentioned before that a large part of what is fueling the growth in small business is the lower barriers to entry. Today through technology such as Internet, Social Media, Mobile Devices etc any start up business has a platform and a voice to communicate on mass … and they do.

There is so much CLUTTER through new media today that for most it will prove to be totally useless in terms of reaching your potential market.

Now don’t get me wrong here … I am not for one minute suggesting that new media is not important.

What I am suggesting though is if you are NOT STANDING OUT & CONNECTING with your target market then you are just adding to the clutter.

Think about this the next time you email a newsletter to your database, or you post some inane quote on Twitter, or engage in some ongoing conversation on Facebook trying to position yourself as knowledgable and important.

If your marketing is not getting the RESPONSE you are looking for then it is most likely you are not standing out and commanding attention … you are just adding to the clutter of marketing messages.

The good news is there is something you can do about it.

Here is a clue … stop looking for simplistic solutions to complex challenges. In 2012 you are going to rise above the clutter (from a marketing sense) when you develop SYSTEMS that ATTRACT CLIENTS to you rather than randomly adding to the clutter.

So you have a choice in 2012 … you either add to the clutter and ultimately fail in business or you learn how to rise above the clutter and command attention.

The next (and possibly more alarming) trend for 2012 is one you must pay attention to.

Trend 2 – The Slippery Economic Slope

All of the economic data points to what the media are referring to as a ‘double dip recession’.

Consider some of the facts:

* EU nations are crippled with debt and no clear plan to resolve it
* 9 EU countries recently had their credit ratings downgraded including France
* US Federal debt in 2012 $16.7 trillion
(Source: http://www.usgovernmentspending.com/federal_debt)
* Forecast slow down in manufacturing in China in 2012 of 25%

I could go on but you can research all of this yourself on Google.

The downgrading of credit ratings for 9 EU countries is alarming as it will result in a tightening of fiscal policy, which will result in a slow down in the EU economies. These economies are already crippled with debt levels they can not service.

Slow down in the EU will impact China … 20% of their exports from their manufacturing sector are sent to EU countries.

The situation in the EU has dominated the media in 2011 however I think it diverted attention away from an even greater problem … the US economy.

With debt levels of $16.7 trillion the printing press has been churning out more US dollars than ever before. The key problem with this of course is that it leads to inflation and potentially hyperinflation.

The value of the US dollar dropped significantly in 2011 as evidenced by the Australian dollar being above parity. Think about how crazy this really is given the Australian economy is 1 /15th the size of the US yet our currency is worth more.

On December 26th 2011 the New York Times reported on an agreement between China & Japan to drop the US dollar and trade currencies directly. This went largely un-noticed as we stuffed ourselves with Turkey over Christmas. But it signals a shift away from the US dollar by the second and third largest economies in the world, which has further far reaching implications for the US economy.

http://www.nytimes.com/2011/12/27/business/global/china-and-japan-in-currency-agreement.html

Based on all of the evidence before us it seems likely that we are heading for a recession greater than the 2007 GFC. If this is the case in 2012 then we will see a huge shake out of small business in 2012.

Another compelling factor is the baby boom factor. Economist Harry Dent believes that as the baby boomers head to retirement it could push the US into a depression.

My view on this is that many of these baby boomers who traditionally would be heading to retirement are now heading to self employment further adding to the clutter. (See trend 1)

Now don’t get me wrong … I am not trying to be an alarmist or paint a negative view of the economic outlook in 2012. Just a realistic view based on the facts.

Here is what I see happening in 2012 for small business based on all of the evidence before us:

* The number of small business start ups will grow dramatically (especially in those categories where the barriers to entry are the lowest)

* The amount of marketing clutter created by small business will grow exponentially

* The potential market you are trying to ATTRACT will become more immune than ever to the clutter making it harder than ever to get their ATTENTION

* All of this will be set against a back drop of economic decline (and potential recession) globally.

* A large number of small business will not make it to the end of 2012.

* Those who RISE ABOVE THE CLUTTER will enjoy greater SUCCESS in 2012 than they could have achieved in the previous five years.

So if I am right about these two converging trends in 2012 … how is that going to impact your business?

More importantly … what can you do to ensure you come out on the right side of the ledger in 2012?

How do you rise above the clutter and command the attention of your market place?

Well as a starting point I gave you a clue earlier …

‘Stop looking for simplistic solutions to complex problems’

What do I mean by this?

A large part of the marketing clutter I talk about is due to business owners looking for simple solutions to complex challenges (ie building a successful sustainable business that grows and profits without your direct involvement).

Many business owners are too quick to assume that because everyone else is doing something that they should do it to. Not necessarily so …

Most want a quick fix and instant results … especially when it comes to marketing. They try something once or twice and if they do not get instant results they assume it does not work. So they jump from one thing to the next to the next … all the while adding to the marketing clutter.

Having personally coached hundreds of small business owners over the last 8 years I have had the opportunity to observe the DIFFERENCE that leads some to be successful where others fail in business.

It is simply this …

Those who fail typically listen to coaching advice then go out and give it a try. When it does not give them instant results they assume it does not work and give up. They fail to recognise that a level of mastery is required in all things in business and do not take the time to achieve this mastery.

Those who succeed typically listen to coaching advice … then they go out and make it work. Not right away in most cases … they need to test, measure, adapt and optimise every marketing strategy. Eventually though they make it work and rise above the clutter.

The choice is of course yours.

As is the choice of where you will wind up at the end of 2012.

What I have not pointed out here (which should be obvious to those most likely to succeed in 2012) is that everything I have said here points to MASSIVE OPPORTUNITY in 2012 for those who do know how to rise above the clutter. Now is the time to put the right SYSTEMS in place to profit in 2012.

So where do you start?

Well I will be posting a series of videos on the Profit Minute blog over the next few weeks on ‘Rising Above The Marketing Clutter’ so please look out for them.

A key part of this is developing a MARKETING SYSTEM that ATTRACTS new CLIENTS to your business and can be AUTOMATED.

That is your starting point if you have not already done so.