In every economy, business leaders need to adjust their strategies to what is going on and will be going on around them. You can usually see these trends and they will be good or bad depending on the industry you are in and how and if you respond. The following are the trends that need to be on your radar for the next 3 to 5 years, and they are not meant to be in order of importance, as they will depend on your particular business.

You must look at the way you do business today and think about how technology might put you out of business or severely damage your market position. If you can imagine a computer someday doing what one of your employees does, today, I can guarantee you it is coming. The shift to scanning and e-mailing and virtual meetings with video conferencing is just the beginning. This is where the switch to virtual employees comes in. Professional services firms have been moving in this direction for the last several years. Many of their employees do not have an office. They have a place to get mail, a space to meet with clients, but their main workspaces are their homes. As the cost of space continues to rise in major cities, it can make more sense to allow your employees to be virtual. It can help you be much more competitive in the marketplace by lowering costs, and often employees are more productive because they do not waste a lot of time in traffic, and they can find better work/life balance.

The high unemployment rate will more than likely affect your business model as well. The high unemployment rate will continue to take a toll on our economy. Yes, there are local pockets where the rate is lower, but the general U.S. population will have trouble absorbing its displaced workers because of increasing population, improvements in technology, and continued globalization. In addition, there will be a wage paradox: the people who are now the sole wage earner where there used to be two will need to earn more, and if you don’t give them the wage increases they need, they will start to look elsewhere. People will be forced to move where they can find jobs and to find a lower cost of living. On the plus side, with a lot more people to choose from in the market. Companies need to hone their skills on how to choose employees so that they have more “A” players to boost productivity.

The trends above should not be looked at in isolation. You need to combine them and consider what they mean. For example, many people are finding it easier and not too costly to go into business for themselves and generate a $1 million+ business from home with just a computer. They get a virtual assistant, virtual bookkeeper, several virtual employees, create a great website, hire a company that acts as their call center, and within a very short period with a good strategy they can become a formidable competitor with little investment.

Howard Shore is a business growth expert who works with companies that want to maximize their growth potential by improving strategy, enhancing their knowledge, and improving motivation. To learn more about him or his firm please visit his website at www.activategroupinc.com or contact Howard Shore at (305) 722-7216 or shoreh@activategroupinc.com.