BUMPS, SETBACKS … AND BRIGHTER DAYS AHEAD?
A Small-Business Success Snapshot
In celebration of National Mom and Pop Business Owners Day on March 29, we present this summary of the hurdles, harsh realities, and hopeful signs that define small businesses in 2025. Although the following words are bleak at times, they also point to a brighter tomorrow for anyone committed to fulfilling their American dream. Struggles in a Shifting Market Inflation has impacted virtually all American life in recent years, but few areas have been hit harder than the mom-and-pop shop sector. In a November 2023 report by Yahoo! Finance, approximately 80% of small businesses revealed an expense increase of 6% or higher. Additionally, the 2023 Q3 Small Business Index report by the U.S. Chamber of Commerce noted that 56% of respondents reported increased challenges in offering compensation that kept pace with employees’ expectations. Loss-Leaders and Clever E-Commerce In addition to attracting consumers through their size and strong branding, major chain stores often outperform smaller businesses by offering “loss-leaders” — items and services sold with drastically reduced profit margins or even at considerable losses. Although the practice may seem counterintuitive, businesses that engage in loss-leading believe consumers will purchase additional items at full price once special deals lure them in. Fortunately, many small businesses are succeeding in outpacing their loss-leading competition by offering customers the
When you think of your customer’s buying journey, do you envision it from start to finish, or do you just focus on the result: the sale? While that end goal is crucial, your marketing strategy needs to get them there. To nurture your customers through the checkout process, you have to put yourself in their shoes and develop your marketing strategy from their perspective from start to finish — an approach called customer-centric marketing. What is customer-centric marketing? Remember, you know your product/service is impressive, but it’s your job to convince potential buyers. The bottom line of customer-centric marketing is to understand the following areas on the buyer journey: • Why does a customer need your product/service? • How will the product/service meet their needs? • Can customers see themselves using your product/ service? Is it relatable? So, how can you discover the answers and tap into your customers’ shopping behaviors? Meet your customers where they are and interact with them! According to a 2023 Sprout Social Index Report, 53% of consumers have increased their social media usage since the pandemic. Those same consumers also desire stronger engagement from the brands they follow or support. They want your help! How can customer-centric marketing benefit your business? Putting customers at the center of your marketing strategy requires dedication from your entire team. Your customers respond to techniques that appeal to emotions, that invite reactions, and thus interactions. This engagement helps Adopting the Customer- Centric Mindset Why Putting Customers First Is the Key to Growth
convenience of purchasing goods in the comfort of their homes. The pandemic spurred many independent businesses to establish online stores via Shopify and other portals, allowing them to maintain sales when brick-and- mortar transactions were out of the question. According to the New York-based web design firm Digital Silk, 71% of small-business owners credit digitalization for saving their businesses during COVID-19. Hope and New Horizons Although small businesses have faced considerable
challenges in recent years, data from the Wall Street Journal/ Vistage Small Business CEO Confidence Index point to an increasingly positive perspective among mom-and-pop store operators. According to an Index report released in January, 54% of small-business owners predict improvements to the U.S. economy over the next year — a 22% increase from October 2024. Additionally, 76% percent anticipate experiencing increased revenue in the same 12-month period. While the journey toward such optimism has been treacherous for many, 2025 may be the most profitable year for small businesses this decade.
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