1. Access to Capital

A confluence of trends will contribute to making financing more available to promising private companies:

  • Small and regional bank capital requirements will be loosened to push cash out of the banks. Big banks, on the other hand, will continue to be subject to greater regulation and scrutiny as to their business lending practices.
  • Interest rates will remain low through the 2014 elections but will rise shortly after as the economy continues to recover and unemployment drops to 6 percent.
  • Crowdfunding (for example, Kickstarter.com) will go from fad to trend for funding private company ventures and product development. Concerns about potential fraud and governance mechanisms for crowdfunded companies will remain, but the model will move forward.

2. Emerging Technology

Innovation will accelerate, producing fast-growing upstarts that overturn industry landscapes, creating new winners and losers:

  • The cloud is already “technology past.” Private clouds will enable private companies to achieve greater scale and reach, with fewer employees. Managed IT services will remain a fertile area for entrepreneurs to develop ever more targeted packages of services to specialized niches.
  • Don’t let an innovator out-mobilize you. Customers, not business, will lead the next phase of the transformation in technology, with mobile apps at the forefront. B2B and B2C mobile pioneers are finding inventive ways to take advantage of how much time everyone spends looking at that phone in their hand.
  • “Globalizing from Day One” — Private companies will continue to go global at an earlier stage, by adopting Software as a Service (SaaS) technology and ramping up global partnerships faster than ever before.
  • Social media and enterprise technology will merge, enabling design collaboration and cross-organization thinking to create better products and services through worldwide networks of designers and programmers.
  • Online customer relationship management (CRM) and customer care will allow savvy companies to “re-personalize” their customers’ experience.

3. New Business Models

New and better ways for companies to create, deliver, and capture value to their target segments will continue to proliferate:

  • “Onshoring” will become a reality. With the rising demand for U.S.-made products over foreign-produced products, and labor rates and total costs for goods manufactured in China expected to equal U.S. labor rates within 2 years, companies such as Foxconn, a foreign manufacturer of technology products, will look to move manufacturing to the U.S.
  • Microfranchising will boom in 2014. A new concept, carried over from less developed countries, microfranchising is a business model that applies elements and concepts of traditional franchising to small businesses. People with a passion to be entrepreneurs but only very limited capital to invest will have a new option to pursue the American Dream.
  • Smart companies will be open to reconfiguring their activities, replacing their full-time salesforce with contract resources and “virtual sales models.”

4. New Opportunities—and Threats

Staying ahead of the competition will require ever more relentless focus on what differentiates you and creates value for your target segments:

  • Generational reversal (high unemployment among the young, lower for older workers) will be a growing trend.
  • Demand for branded consumer goods by an expanding middle class in developing-market countries will surge, particularly in China and India, countries that until now have been exporters and not consumers of their own products.
  • Growing demand and shrinking supply of housing will increase homeowner’s household wealth and consumer confidence, propelling the economy to new heights.

5. Lower Energy Costs

A new world of American energy exploration and production is creating widespread opportunity, lowering business costs:

  • Continuing concern about global warming will boost renewable energy and other low-carbon technologies.
  • Abundance of U.S. natural gas and significant cost advantage over oil will turn the U.S. into an exporter of oil, resulting in continued low energy costs for industry.

Time will tell as to which predictions will come true for 2014. The key is to harness powerful trends in ways that support your value proposition and market penetration. Thinking globally can keep you a step ahead of the competition

For Full Article by Michael Evans, click on the link below:

http://experts.allbusiness.com/5-key-business-predictions-for-2014/12662/

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

About Lex R. Brown II, MBA

Business man, tech enthusiast, avid reader, creative writer, military veteran, tactician, activist, and solutionary. Always looking to learn something new, seeking new challenges daily, eager for growth and opportunities to network with others.

Category

Solutionary