Grow Small Business With a New Customer Dynamic

Slow economic recovery is bane to grow small business.

We must look for ideas beyond the frustratingly slow recovery indicators.

The economic tide naturally rises with consumer confidence and employment indicators after a downturn. With those traditional indicators still depressed after the worst recession in 70 years where should we focus?

Understanding the new customer buying attitudes post crisis is critical to begin understanding.

Traditional economic measures miss important buying behavior shifts.

Economic trend watchers have a built-in disadvantage how to grow small business looking through a rear view mirror.

Instead, zeroing in on customer attitudes gives us a windshield view of what is going to happen. Successful owners who align their selling patterns to their target customers values have an enormous competitive advantage to grow small business.

What are Customers Thinking and Valuing Much Differently?

To grow small business further how do we both understand and anticipate customer’s needs?

Knowing what my post crisis consumer values is one of the best places to start.

Consider this illustration on the best way to grow small business.

Imagine being in a time machine taken back 50 years ago as a young and ambitious entrepreneur. Armed with only the future annual consumer attitude shifts that will grow small business in your pocket.

How would you help entrepreneurs prosper with just that single resource?

So what’s the next best thing to a time machine to grow small business in an uncertain economy? Forecasting future consumer choices is made easier if you know important changing consumer values.

Successful owners understand how to match those changing values with their target customers buying preferences.

Where Did Consumers Get Their Pre-Crisis Insiders Tip?

Consider 2006. Without any “insider” tips or presidential decrees, consumers began to quietly and sharply reduce their spending and increase their savings rates. It is as if they sensed that double-digit annual housing prices increases and gas guzzling SUV’s were no longer sustainable – or desirable.

Why Post Crisis Consumer Attitudes Made Such a Significant Shift

For 60 years the average American consumer saved about 10% of their income. Successful smaller firms still managed to thrive for decades.

However, for the next 20 years riding a sea of easy credit that fueled record consumer spending the savings rate dropped considerably. Some years, American consumers even spent more than we earned!

During 2006 it appears that most Americans somehow knew the spending party was over. Loose credit standards were no longer seen as attractive. Savings rates started to rise to their historical levels. Savvy entrepreneurs adapted and survived.

The Financial Crisis in 2008 simply accelerated that remarkable trend. Sharp cutbacks in both spending and borrowing for both households and small firms were now the norm.

Consumer Values with the Biggest Declines

Consumer surveys* about that same time showed a marked decrease in the desire for material goods and services. An important benefit of these customer attitude surveys is a much better understanding for those who want to grow small business. Knowing the relationship between values, brand preferences and purchase decision-making by the end consumer is vital for owners to have.

Think of this impact on those firms who stay stuck in the past! Look at this dramatic shift toward lifestyle simplicity:

  • Status driven values (snobbishness, exclusivity)
  • Arrogant
  • Sensuous
  • Daring

The New Consumer Values with Sharp Increases

How would customers help to grow more small firms connecting with these higher felt values?

  • Kindness and empathy
  • Friendly
  • High quality
  • Socially responsible
  • Self reliance
  • Adaptability
  • Community

Want to grow small business fast? Companies with these sets of brand values were three times more preferred than other companies offering similar products and services!*

How to Get a Small Business Loan

Need some funds to expand or start a small business? If yes, then you are at the right place, because in this article we are going to talk about how to get a small business loan. Following are some very useful tips that will be helpful to you in getting a loan.

Choosing the Type of Loan

If you want to get the loan then it is very important to take a close look at the different types of loans available. Today there are many types of small business loans available and you have to choose one that will perfectly meet your personal needs. Nowadays, government loans are the most popular type of loans for small businesses because these kinds of funds are comparatively easy to get. These kinds of loans are especially good for people who have served in the military and other government employees.

Another type of loan is the fast business loan. Usually these kinds of credits or loans are acquired through more expensive means. The fast business loans are suitable for people who want to get a small amount for a short period of time. They are also known as payday loans and most of these fast lenders will not even need any kind of credit check.

Woman small business funds are generally available through various private groups or organizations. In order to find these groups you have to search on the Internet or visit your local public library.

The Documentation of Your Loan

After choosing the right kind of loan, now is the time to prepare documentation. When it comes to documentation, it is essential to know that your personal credit history will be relevant to your small business loans statement, especially if your small business does not have a long operating history. Bring your credit history with you to the bank or group from where you want to get your loan. With the help of this history they will make assumptions about how you operate your business.

You also have to show a financial statement in order to prove the financial health of your business. Specifically, banks want to know how much money you are moving in and out of your business. If want to get the loan without any issues, then you should prepare a detailed and precise statement.

Make sure that you have a functional and updated business plan. By preparing a comprehensive business plan you will already get your performance and financial statements prepared. Another important thing to tell about how to get a small business loan is that you must include your and your partner’s bio, your strategies, and track records in your statement.

Selecting a Bank for Getting a Loan

If your documentation is all set then you are ready to ask for the money. When it comes to getting a loan then a question always arises in our minds: “From where should we get our loan?” Start with the financial institutions with which you have had some business relations in the past. The advantage of these places is that these financial institutions already know your financial behavior and business history.

If you have not had any kind of business relationship with any financial institution in the past, then go to somebody who actually wants to do business. The best way to get information about the different financial institutions in your area is through the business section of the local newspaper. The local banks are actively looking for people who need loans for their small businesses and the process with the local banks is lot easier with multi-national financial groups.