The Bureau of Economic Analysis recently reported state and regional growth statistics for 2007. No surprise that the Great Lakes region showed the slowest growth overall at 0.5%. Illinois, with the most diverse economy in the region grew at 1.5%, while Michigan lagged at negative -1.2%. Nationally growth advanced by 2.0%.
Lessons for small companies, if you sell in or to particular regions or states, you must prepare forecasts and plans for the particular economic trends in the areas where you make most of your sales. Accountants can assist you planning efforts, but you and your financial staff must do the hard work of forecasting. Accurate planning assists your relationships with lenders and other investors. I can help you adjust spending, and if you can't make your revenues you must be prepared to cut elsewhere.
On the flip side, locate the areas that are growing more and target these markets. Long term trends don't lie, and they may save your business if you plan for them.
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