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.
Showing posts with label spending. Show all posts
Showing posts with label spending. Show all posts
Thursday, June 5, 2008
Wednesday, March 5, 2008
An Early Easter is Bad for St. Pats
It's not enough that retailers struggle to find a niche to generate revenues online, now the word is that off-line retailers will also suffer a decline in year over year revenue on St. Patrick's Day. The National Retail Federation ("NRF") estimates overall revenues will decline by 3.2% from 2007 as a result of fewer customers, despite a slight increase in average per customer spending.
So if you are a bar or restaurant, I would not spend much marketing money trying to pull in families or married couples, spend those dollars luring college folks and those just out, that's your best bet for a solid return on investment.
“Retailers and restaurants that benefit from the St. Patrick’s Day holiday are up against a double whammy of an early Easter and the holiday falling on a Monday,” said NRF President and CEO Tracy Mullin.The 18-24 crowd are still the big celebrators and spenders, allocating an average of 20% more money per person than the average and they show much higher attendance than the average.
So if you are a bar or restaurant, I would not spend much marketing money trying to pull in families or married couples, spend those dollars luring college folks and those just out, that's your best bet for a solid return on investment.
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