Are you prepared for the way major changes in the world economy will influence the way we run our businesses in the future?

 Through the upheaval of the world economy and its financial implications, consumers are quickly changing their priorities. The way we do business is about to be much different as technology leaps into another era influencing the way we run our offices and manufacture our products. The vast amount of data available through the net continues to grow at an enormous rate. With ease it allows consumers to access volumes of information online and buys more competitively online. The customer has always been king but as we climb out of this recession, they will be even more powerful.

 Normally when the words economics and statistics are mentioned many business operators become blinded and confused by all of the academic and technical jargon. This is unfortunate as being able to understand even the basics of these subjects can greatly assist a successful marketing campaign and vital in the way we develop and map out the future trends of business. To make it simple, the study of statistics deals with the rational of human behaviour by working through historic data. Economics can also be explained as a study of human behaviour however Economists try to foresee the future financial impacts of the world economy and by being proactive they can allow for the impact on our money supply that may or may not occur in the future.

 If New Zealand strikes a major oil field for example our economy would literally change overnight and there would be a surplus amount of funds channelled into our economy to invest. On the other side of the coin the reverse could happen and taking it to the extreme, if the dreaded disease of foot and mouth be found in our live stock overseas investor’s money would flow rapidly out of our economy. As we’ve seen in the last six months, hundreds of millions of dollars have been literally wiped off the board through the fear of a major recession.

Knowing your market is critical, however it doesn’t have to be difficult or expensive to carry out your market research. Much of this work can be carried out in house by utilising your own personnel resources. That is provided that it is well planned, managed and the right data collected. Taking the time to get involved with your product research can be an invaluable exercise while building up your company profile through customer service by speaking with your valued customers.

 SME’s are critical for the future growth of our economy and they need to be in front if not ahead of the game. These businesses are established by entrepreneurs with vision, passion, guts and sheer determination and employ a large proportion of the workforce. Today in the world, many of our large successful international company’s grew from small beginnings after the last recession. Take Microsoft for an example.

The’ Wave’ approach to market research is based on encouraging your own employees from the factory floor to senior management in developing new products and on improving existing products or services their company’s provide. It is similar to the practice of ‘Continuous Improvement’ in other areas of business.

There are a number of advantages to practicing the ‘Wave approach to Market Research’ in your business including:

1. It encourages your employees to think outside the square, take ownership and be part of the long term growth and viability of the business.

2. As a motivator it highlights job security and long term employment.

3. All employees are involved in the product research and development from the factory floor to senior management.

4. Encouragement is placed on a positive team approach.

5. Valuable data can be collected from a cross section of social-economic levels within your business.

6. The practice of Wave Research creates a united and winning attitude.

There is no doubt that by being able to understand basic economics and statistics is important as change happens quickly and those who fail to keep ahead fall well behind and in many cases businesses eventually fail.

When we see what has transpired over the last 5 years in technology there have been major leaps forward. Understanding consumer habits in the past must be considered however more time must be concentrated on the here and now and how we anticipate future trends.

Fred Stewart

As an international business doctor for over 25 years Fred has worked with a large number of businesses in a variety of fields. His success in turning around poor performing small to Public entities is renowned. Both the MML philosophy of leadership and the Wave Approach to Market Research were created by Fred and they are now being practiced in a number of successful businesses.

For further information about Fred, visit www.businessdoctors.co.nz