This article is written and owned by Ken Kaufman
What we can expect and should plan for in 2010. Here is my list of the top ten trends founders, CEOs, and entrepreneurs of start-up, emerging, and medium-sized businesses should consider as they prepare for the new year.
1. The recession will not end, regardless what anyone says – There are just too many issues that still need resolution before this economy can rebound, like the write-down of ALL of the bad assets on the books of the financial institutions. The fact that they are still not lending much to existing or new customers should be a sign that they know they still have a lot to lose before they can begin to gain again. In addition, the new business models that are emerging in this recession are leaner and meaner than we have seen in a long time, meaning they aren’t going to help unemployment any time soon. The effects of this recession could last quite a while.
[Author's Note:I realize I will take some heat for this prediction, but please know that I am only bearish on a macro-economic level. There are and will continue to be many businesses that grow and thrive through this time, and I applaud them all for it! If more businesses were like them I would be much more optimistic about an economic recovery.]
2. Bootstrapping will be king!- Usually you will hear me say that cash is king. In 2010 the entrepreneurs that have learned to boot-strap will be king. Many of their competitors have gone out of business or are in some sort of a death spiral. Those who made changes early and are continuing to adapt to the changing economic market are going to win. I hear lots of businesses take the mentality of: “If we can make it through the recession will be poised to do well.” That attitude is just not going to cut it. Survival cannot be the only goal – those that can figure out how to generate positive cash flow in the tough times are the ones that will win when things turn around.
3. Solving lots of customers’ needs will raise capital- If you are starting a business and your whole focus is on raising capital, you will not get any in 2010. If, on the other hand, your focus is on getting and satisfying customers with a great product or service, then you have a much better chance to get the money you need (if you even need it). Ben Peterson, a successful entrepreneur and angel investor, identified one of the major sources of this problem. He said that the focus in business schools and entrepreneurial education is on teaching how to raise money, not how to grow a successful company that is actually worthy of investment capital. Get to work, and the money will follow you if you can take care of lots of customers and your need for capital will really add value to your efforts to serve your target market.
4. Business Lending requirements will increase – It got a lot tougher to borrow money in 2009, and it will continue to become more difficult in terms of requirements and complexity. For example, a business just obtained a small $125,000 line of credit and the legal documents the bank sent to their customer were over 150-pages in length. Even though the mean credit score in the US is on the decline, banks have raised their requirements on business owner credit scores and they are mandating more collateral (as a secondary source of repayment) than before, especially if it is real estate.
5. The cloud will continue to gain a share of all things computer- We are seeing more and more companies abandon traditional software and convert their operations to the cloud. This is a great trend for entrepreneurs who can accomplish just as much as big businesses for a lot less expensive cloud-driven solutions. Here is just one example: 2 years ago almost every business used Outlook or some other computer-based email client for its employees. Today we are seeing some companies, especially those with entrepreneurs under the age of 40, switch to web-based and SaaS applications. Google Apps seems to be the most popular for now, but the point is clear – the practices of purchasing expensive software to load on each computer and servers to host all of the company’s data are becoming antiquated and cumbersome.
6. Social media overload will drive users to the best content sources and filters- Even status updates in LinkedIn are tough to keep up with anymore. The flow of information through social media tools has grown so dramatically that most feel like they are on overload and like it is impossible to keep up. While providers are trying to figure this out, we are all going to be driven to the sources of the best and most reliable content, especially if it allows us to filter it quickly and effectively.
7. Health insurance will continue towards high deductibles and consumer-driven care – I have long been an advocate for high deductible health insurance plans with HSAs or other medical savings accounts. Yet such plans represents such a stretch from traditional health insurance that adoption rates have been very low. It seems like employers and employees alike are warming up to this idea and their popularity will continue to increase.
8. Being big will become less advantageous to being small – Big will no longer necessarily be better. There are many reasons for this, but here are the main two – small and medium-sized companies are often more flexible and more hungry to satisfy their customers and big-company economies of scale are becoming less relevant. For example, with its use of remote, flexible, and contract workers, Jet Blue is able to do more for its customers than any of its larger rivals – and that is in a very capital-intensive business. Service businesses may find even greater advantages as compared to their larger competitors.
9. Focus on relationships will pay- Relationships have been and will always be the key to building a successful business – mainly because they help us establish trust. I’ve included this on my trend list because it seems like to some the practice of building trust is a lost and fallen art. Obtaining more followers on Twitter and increasing your pool of friends of FaceBook are only relevant if we build relationships in the process. We will see relationships and trust-building come back to the forefront of business as filtering tools allow us to connect with those who matter most and with whom we want to foster and strengthen our relationships.
10. Knowledge workers will take more contract and less full-time work – This recession is helping to accelerate our economy to more of a knowledge-based worker model. These knowledge workers are finding more benefits in contract and part-time work. Some appreciate the flexibility, while others feel their value-added to and sustainability in these roles are more secure and potentially more profitable. Our rel=nofollow [http://www.cfowise.com/]CFO services business is just one of many examples of this trend.
I would love to hear any thoughts, concerns, questions, modifications, additions, or deletions you have for this list and how 2010 will impact you and your business. All the best for a prosperous 2010!
Ken Kaufman, Founder & CEO
CFOwise http://www.cfowise.com
CFOwise is the premier part-time CFO firm for start-up, emerging, and medium-sized companies.
Article Source: [http://EzineArticles.com/?Top-Ten-2010-Trends-For-Entrepreneurs&id=3453504] Top Ten 2010 Trends For Entrepreneurs
See these 2010 Opportunities now, click here
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How to Identify an Excellent Mentor
By [http://ezinearticles.com/?expert=Bob_Tay]Bob Tay
A mentor is a trainer or a consultant who has been successful in the business world. He or she is the one who guides you through all obstacles to help you achieve the success you never thought possible, which is why you need an excellent mentor.
This is somebody who knows the business inside out. They know what works and what does not. With that knowledge, they can give you sound advice. A good mentor must also be willing to train you and impart their wisdom.
Having been successful in business indicates that a good mentor can read people well. So understanding human behavior is vital. This enables mentors to manage people and tap into an individual’s strengths. They must also have the ability to inspire those around them.
What is more, a mentor must be committed to you. This requires patience on their part to ensure you become successful. The person also needs to be a good listener, well-rounded and respected by the industry, not to mention willing to keep an open mind, especially when face with different points of view.
Finding a good mentor is vital if you are to make a success out of your business. So you should consider spending time looking for one. Like searching for diamonds in a vast land, it may take considerable patience but when you find one, it is sure to be worth the effort and wait.
Talk to people in the industry, ‘fish’ around and listen to what others have to say. When you hear good things about somebody, chances are they will be a good mentor.
The lessons you will learning from your mentor are far more valuable than the outcome of your business. Imagine working together and developing valuable insights that such a person can give you. This is indeed a priceless experience. Furthermore the bond between you and your mentor will remain steadfast for years to come.
“No man is an island.”
Bob Tay has been in the advertising industry for over 10 years and now gives a helping hand to those who wish to start up their online business. He is a virtual enterpriser who partners with Michael Force using a new business model.
Click [http://www.michaelforce.net]here for more information.
Article Source: [http://EzineArticles.com/?How-to-Identify-an-Excellent-Mentor&id=3718544] How to Identify an Excellent Mentor
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