Edmonton Business Coach | Business Plan Market Trends

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Market trends are going to change over time. They are going to be different in year 10 than they were in year one. So those trends are going to change over time and sometimes that necessitates, you know, that you have to change. Yeah, I can see why with the two I can be you and ah, cause it’s not, hi, thanks for tuning in again for another episode of ask for spurl CPA. Today as the EBIDTA business coach, we’re talking about business plan market trends, section a, I have Laura here with me today. Laurie, you’re learning a bit about business class. Ah, Yup, Yup. Did they have a business plan section, uh, you to niche, right mcewen years? You were at Macewan. For all the top Edmonton Business Coach call here! So did they have a, uh, a business plan module or chapter and one of the books that are covered? Um, not that I recall. Not yet. Not yet. Okay. That’s usually the answer I get from most undergrads is they had like one chapter in one book that dealt with business plans or not. Um, even though you know business plans, there are 50% more likely to solve the number one problem in business. But the, the quote that we have, your data, Benjamin Franklin quote, one of the founding fathers do in United States, he says, if you fail to plan, you are planning to fail. And Paulo Alto is run the numbers on it. And they say, you know, just like I said, you know, businesses who complete a plan are 50% more likely to grow their revenue than those who do not. And revenue growth is the, usually the number one problem in any business. And you’ll, the story that we have here are new entrepreneurs. They get too focused on what type of work they want to do rather than the type of product and service that the market wants and even experience olders they forget that what the customer wants, he changes over time. Those trends are going to change over time and need to change with those times because it’s not about what you want to do. It’s about with the, with the customers going to buy ultimately. So Laura, what are the questions that these business owners should be asking?

Do you look at the market trends in the market and risk section of the business plan? Yeah, so normally I have a whole section that deals with the market and the market and risk section of the business plan and you’ll, the first part of that section is going to be the market trends. Uh, that’s where I find it the most helpful. Is this different than the target market section in the executive summary? Yeah, so the people think market market and risk the target market. Normally that target market is so important that I’m putting that right up there in the executive summary. Let’s say you’re, you’re targeting homeowners in the metropolitan area that you live in, uh, or you know, your quadrant of the city that you, that you live in that target market that’s different, right. You know, you might even go deeper into that target market and you’re new. You’re targeting, you know, female homeowners between the ages of 30 and 55 with the income levels greater than $100,000 in the northwest quadrant of your city. That’s the target market section is different in this market and risk section where it, you know, let’s start talking about the trends. First of all.

Well trends change over time. Almost all the time. Market trends are going to change over time. They are going to be different in year 10 than they were in year one. So those trends are going to change over time. And sometimes that necessitates, you know, that you have to change. Will some trends provide opportunities? Yeah. So, so trends aren’t necessarily a bad thing. People think about trends and there’s a slow down and I’m getting replaced by technology or something like this. But a lot of the trends present opportunities, there’s things that the market is crying out for and they can’t get enough of it. Um, so there’s a lot of opportunities to be had by studying the trends within your industry. Call Now For the top Edmonton Business Coach!

Well, some trends provide challenges. Yeah. So the challenges are the big one too. When people normally move out of fear, unfortunately not from the opportunity, but there it within the trends, there’s going to be both opportunities and there’s going to be challenges and we gotta be realistic about both of those. Should plans identify multiple trends including both positive and negative ones? Yeah, so the, here’s the thing, a lot of people will come and they, they identified some trends in the industry somewhere, maybe not in the same section that I like to do, but a lot of times they haven’t gone deep enough to say, Hey, these are the specific trends in my industry that is, you know, the are creating a big opportunity. Usually they put those in there. This is the opportunity, this is the niche that I’m feeling. But they don’t say that these are also the trends in my industry that are making it harder to do business in my industry, creating more risks in my industry. And you know, what a, an effective business plan. It’s going to give both the positive and the negative trends. Um, you know, yeah, I think you’re really doing a disservice by only identifying the positive trends in the industry or the negative trends in industry. You need to identify multiple trends in the industry and if you’d have an honest discussion about those multiple trends in your industry, you’re going to uncover, you know, positive ones that provide for opportunities and negative ones that pose challenges on doing business. Please call now if you want a Edmonton Business Coach today!

Does technological advancement normally create trends in everyday industry? Yeah, so technological events. Yeah. Yeah, for sure though. Yeah. There they’re going to create, um, you know, trends almost every industry, there is some technological advancement that changes that industry over time. Some of them, you know, move quickly more quickly than others. Uh, but almost there’s a progression over time and it’s, you know, keep an eye on that over time that prevents you from having to completely reinvent the wheel overnight and your technological that they can go both ways. So you could have a technological that makes the work that you were doing. Sometimes a technological trend is that now the computers can do that work that you were doing, whereas before you required a human being and you could get a higher price because you need to have a qualified individual doing that work. So that’s the common one that we find with, you know, technological changes. Be sure to give us a call now at 780-665-4949 or please check out spurrell.ca!

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But you know, the technological changes often presents opportunities too because sometimes you can acquire that software, uh, or that hardware before your customer does. And you can do the job, you know, quicker and better than you used to. You can, you know, tackle larger accounts or you can automate one side of your industry, one part of your value proposition and spend more time in another, I know a value proposition that you have in your business. So as you know, not to be, uh, replaced by the computers, so to speak, where you’re, you know, you’re using the computers as a tool and not just focusing on the work that the computers can do by itself. Do macro economic factors create trends in every industry, every single industry that, you know, we look at, you know, if you were to, you know, a, you know, the macro economic outlook of Alberta Right now in 2019, it’s not as good as, as it once was as a Edmonton Business Coach.

You know, we’re not like in, in 2007 where we had restaurants that would close because they can’t find anybody to work in the restaurant. Uh, you know, we have a lot of macro, uh, economic items that are affecting industries where we have a lot of people in, you know, working in oil and gas for example. And now those people, those trades people working oil and gas have come back and, and flood the, you know, residential or commercial construction markets. All of a sudden there’s an oversupply of service providers. Um, they may or may not be as, as, uh, um, you know, astute to what is required and that type of construction. But nonetheless, that the macro economic trend is changing the available supply of trades people in Alberta. And that happens in every market and they can flip the other way. Where you know, all of a sudden, you know, you’re on a company’s end and all of a sudden, uh, people go back to oil and gas industries and all of a sudden it’s harder and harder to find those same trades people to execute the residential construction contracts.

So those macro economic trends are, are, are going to have effects an Andrea industry. And sometimes, you know, that’s a little more of a specific example that sometimes it’s just we’re in a recession, things are tighter, things are tougher and it doesn’t matter what industry you’re in, you know, what’s going to effect it somewhat. Can government policy create trends in an industry? Yeah, and it’s government policy on any level. I mean the government changes the, you know, the taxation of large companies and making a, they lower taxation and make it really attractive for big multinational conglomerates to set up shop. They take away from that Labor from all of small businesses sometimes, uh, and make it a little bit more difficult for the average, you know, small business owner. And sometimes it can be a, you know, straight up from regulatory trains that we look at, you know, how the government has gone into what, you know, given legislation on how we deal with things like, you know, mortgages who can qualify for what amount for mortgages. Be sure to call us now if you need top Edmonton Business Coach today!

Well that affects rate down the line of people involved in the construction industry who are actually building those houses in the sub trades who are supporting the home builders. You know, government changes can affect the industry and it comes on every level of government, federal and provincial and municipal. You know, we’ve seen municipal initiatives, for example, to encourage the development of basement suites. So we talked about, you know, construction providers, they facilitate the, the, you know, the construction of basement suites where, you know, in the city of Edmonton right now they’ll give $20,000 to be used to a construction of a basement suite. So we see contractors that are focused on the development of these basements suites. You know, maybe the macro economy is kind of detracting them. But if they, you know, dive heavily into this trend of doing basements suites and establish themselves as a leader, they can come up kind of unscathed. And, and that’s just, you know, construction initiatives we look at, there’s a big initiative in terms of the dental industry. For example, a lot of people don’t know this, but you know, the, the fluoride put in the water in Edmonton, it’s a municipal decision of what they’re gonna put in the water treatment pipe. The fluoride component in amateur is higher. And what that means is people’s teeth lasts longer. They have less cavities, they less root canals, any less extractions, the teeth are lasting longer. And densities have told me that the same water in Calgary has less of a fluoride component. So people need more dental work. So sometimes the things that will create a change in an industry, it can be really difficult to see, but it can have a, you know, an incredible effect of what that can do for the, you know, the underlying industry as a whole. Did that over supply or under supply of particular industries.

Yeah. So, you know, we talk about that. Pretend we have these basement developments, right? Um, you know, and, and there may be a bit of a need to do those basement developments. Say a few years ago it was about like doing these, uh, re facing the municipal government have this, um, the city of Edmonton had this plan where if you owned a business on certain streets, they wanted to make it look prettier. So they were going to pay for the bit of the construction costs and that everybody jumped into doing that because there was a big, you know, under supply people who would do these re facing projects and all of a sudden everybody was going into the rear facing projects and then it became highly competitive, right? And now we see that there’s an opportunity probably in some of these basement development projects, but these niches will change over time. So it’s not just the industry as a whole that goes up and down. There’s little of these industries that are more attractive at some times and less attractive other times. And it’s just don’t, people eventually flow to the least path of resistance. And once that gets flooded, you ought to be looking for the next trend to, to capitalize on it. So I think that’s what we have here today. Thanks so much for tuning in. As always, please hit that lake and subscribe button so we continue to deliver you tips on how to beat the odds at business. And as always, we love to read any comments that you have below so we can respond back and use your input for future videos. Contact us now by call ing 780-665-4949 for all Edmonton Business Coach needs also please check out spurrell.ca. Thanks very much.