Small businesses reap benefits of Halloween buying
Believe it or not, Halloween 2017 is important for small business owners.
According to the National Retail Federation, a projected 179 million children and adults will spend an estimated $9.1 billion on costumers to decorations to that really important item – candy.
This year, Halloween expenditures will top the last few years for several reasons and these are important reasons for small business owners and salespeople.
First, Halloween in comparison to other holidays is very affordable. Your small business solution should also be affordable when compared to your competition. Halloween is the essence of value. Costs are lower than Christmas or even Thanksgiving and there is all important fun factor.
If the cost of your solution is not comparable, this means you must demonstrate the value (think results) your solution delivers, the time frame and sustainability (think return on investment).
Second, people are not scared of the global economy as in years past. Consumer confidence is at its highest in 10 years per the Consumer Confidence Board. This index is based upon a demand economy. Within the U.S., 70 percent of the gross domestic product is driven by the spending of consumers.
How are your customers viewing the economy? Probably your customers are not the in the Fortune 100 to 500 list where 24 U.S. companies currently are sitting on $1.01 trillion in cash reserves, according to the Bank of America. Yet many smaller companies are starting to let go of their discretionary funds because of their confidence in the economy.
Also, unemployment claims are the lowest in 44 years and this suggests employers are holding onto workers. With employers holding onto workers, finding good help may become even more difficult.
In speaking with many small business owners, one of their greatest concerns is the lack of good workers. Between younger workers wanting unrealistic salaries and having less than desirable work ethics to even older workers not being trained especially with regards to technology such as using software programs, good help is hard to find for small businesses. Then add in the required and random drug tests per federal requirement for many industries and filling jobs is much like a very expensive revolving door.
According to Society of Human Resource Managers in 2016 (most recent statistics) the cost to replace a salaried employee is six to nine months' salary. The average cost per hire is $4,129 and it takes 42 days on average to fill open positions. Just think of how much stress not having a full complement of staff is putting onto other employees as well as customers.
The third reason for small business owners and salespeople to be aware of is future interest rates. With the signs of a healthier economy, this suggests the Federal Reserve may raise its funds rate to 1.5 percent in December from the current 1.25 percent. Borrowing money is going to become more expensive as projections also suggest a 2 percent rate in 2018 and a 3 percent rate in 2019. For small business business owners, now is the time to have exceptional sales and start accumulating some capital reserves. Paying for expenditures in cash from new vehicles, new technology to even new offices will be far less expensive than financing any of these new purchases. If your small business does require capital outlay and you don't have cash, now maybe a time to consider those purchases before interest rates climb.
Believe it or not Halloween in 2017 is a great indicator of where you are in the flow of small business.
•Are you behind the flow? Your sales are still lacking and you are scrambling to meet quarterly and end of year sales goals.
•Are you with the flow? Your sales are on target, but not really ahead of them. Possibly some complacency has set in?
•Are you ahead of the flow? Your sales are exceeding 2017 target and your 2018 first quarter is looking good. You have accumulated some cash reserves and are looking to buy some needed business upgrades by the end of this year.
The last thing you want as a small business owner or salesperson is to be tricked especially with only two months left in the current business year. Maybe now is the time to grab that super hero costume, slip it underneath your daily attire and start working toward your 2018 business goals.
Leanne Hoagland-Smith is an author, speaker and executive coach. Her weekly column explores issues that impact the bottom line of firms with fewer than 100 employees. She can be reached at 219-508-2859.
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