The Post–Recession World and High Growth Business opportunities.
In the previous post , I presented a model for building high growth business even in a recession and how to begin to position for recovery. I will now focus on the first stage – REFRESH VISION and begin to paint a picture of what the new business landscape may look like. These may appear as daunting challenges but they will inform perhaps some of the areas where innovation can target to yield the highest growth. The winners of tomorrow see these as the spots of opportunities that will drive their future growth.
Future Business Landscape – The New World
- Unemployment remains high being a lagging indicator even as new specialised skills are scarce and in demand.
- The more discerning, sophisticated, frugal consumer will have more options and power.
- Costs and risks associated with financing, debt/cash management will need more proactive management in an unpredictable monetary landscape.
- Shift of Growth from West (US/Europe) to the East (China) and new growth niches.
- More Federal/State involvement, control and regulations drive up costs
- Rising fuel costs, erratic weather patterns, rural/urban migration and the conversion of land to grow crops for bio fuels are all factors that continue to cause high food prices and shortages.
- Rising local/global insecurity driven by social/ethnic tensions.
Where are some of the opportunities for high growth business? I suggest these will include the following initial list only for discussion purposes to inform your envisioning. There are of course more areas where innovation can target new needs and values. These areas are most likely to be more rewarded with high business growth because they are linked to the emerging landscape.
High Growth Potential Opportunities/niches
- Food and Agriculture sectors – the entire food chain offers high growth opportunities
- Computer/Information Technology industry and related areas
- Employment bureau/Human capital engineering
- Security Intelligence and corporate safety
- Low/medium end affordable residential real estate
- Niche Health and Medical services
- Outsourcing services
- Equipment Rentals/Leasing services
- Education services/Re-skilling businesses/Knowledge sharing
- Customer Market analysis /Data consulting service
- E-business leveraging new channels i.e. webs/blogs/social media
- Government Consulting/regulatory support/Public sector support services
Areas perhaps to be most cautious in a recession could be high-end real estate, entertainment, luxury industry e.g. jewellery, watch industry etc, high end retailing (designer clothing, gadgets etc.) high end automobiles, Interior decor etc. A new thrifty lifestyle is likely to emerge post-recession. The successful high growth business is well focused around a core area and may innovate into high growth sectors where there is already a linkage or some synergy exists to diversify. As you develop your long term vision and goals, do reflect the new realities. The next post will examine the meaning of Business Focus. For the full article on How to Recession-proof your Business you can click – DOWNLOAD ARTICLE.
More on God’s perspective on wealth can be found in my recently published book Wealth out of Ashes