With the boom of the Internet, even small businesses can be seen all over the world. Therefore, it is imperative that every business owner/entrepreneur observes their market in the global context, understanding it will affect them sooner or later. The influence of the global market can be either be positive, as an untapped opportunity, or negative, as global competitors invade your local market.
According to recent studies, more than half of existing small businesses in the UK already have global customers.
In this fast-paced world economy, it’s very important for every entrepreneur to pay close attention to the key forces that operate outside of businesses which can bring bigger challenges, as well as huge opportunities.
- Demographics Emergence and Generation Gaps
The needs of Millennials are changing the culture. Goods and services come and go, emerging nations flitter in and out of mainstream trading, and these factors change both cost and demand. Every single business, large or small, needs to focus on being alert and sharpening their capability and skills for innovation.
- Customer and Employee Power Stakeholders
In the latest world economy, the power is shifting from shareholders and owners to employees and customers. Therefore, new business models may be required, with new team benefits, and a new focus on customer relationships. Try ways to keep yourself financially secured with emergency funds in place as it will provide your business the cushioning when things don’t fall in place due to the changes in the market.
But when it comes to having an emergency fund in place, a lot of business owners do not know where to start. Choosing the right way to build your emergency funds is important as if you don’t build the right way; they can hamper the business’s finances.
For instance, a loan from a bank can come in handy for building emergency funds but they have high interest rates and they need to be paid back in time. In such a situation, opting for alternative finances can be the right choice. There are a number of alternate funding options available such as invoice finance, asset finance and cash flow finance that offer more flexibility in terms of pay back options and also has a lower interest rate than bank loans. Look out for a reputed alternate funds provider and go for the funding option that suits your business the best.
- World Political and Economical Connections
Today people are closely connected through social media, and their economies are linked through global finance. This can result in even small political and economic problems causing ripples. Recent examples are the Brexit referendum in the UK and the Trump presidency in the US. Such ripples can be either opportunities or catastrophic for business.
- Environment and Sustainability Become Critical
Global warming as well as renewable resource planning can be present major opportunities for new businesses, or can be fatal for an existing one. Opting to go green is not a qualification for funding or growth, but concentrating on distribution of your profits can be a good thing to gain a competitive edge.
- Localisation and Translation Becomes Highly Valuable
“Reverse innovation,” can be seen often these days, wherein customers in developed nations adopt new technologies first. Instances include smart card adoption where there were no cell phones, no credit cards or coverage emerging before traditional landline phones.
Translation costs can go down on a daily basis. To address any or all of these on a timely basis, you need a team that is creative, flexible and resilient. Such a team can be built right from the start – it’s tough to retrofit the requisite culture in a company with people who are not looking to change. The team members have to truly believe in paying heed to the customer, and reverting quickly.
Business leaders who are smart enough accept these challenges as the new truth of life, and are boosted by the potential, rather than being overwhelmed by implications. They see their business as part of the global market, even if their focus is only on a specific business. Make sure that you are acknowledging these key factors that affect your business and are taking the right steps to make the best of new business realities.
