Category: Business Trends

Logic might dictate that right now is not the best time to invest in or to start a new business venture in Egypt, what with all that political and economic turmoil going on. But is that right? There’s this nagging voice in the head that keeps saying otherwise, a reminder of that oft-quoted piece of wisdom. What is it? Ah yes, the best time to start a business is in the middle of a recession. What about in the middle of political turmoil? Does that qualify, in terms of wisdom, that is?

The location is certainly right. Bang slap in the middle of huge markets. Europe to the north and west; Africa to the south; Asia to the east.Billions of people, lots of whom might just want what you have to offer. Then there’s the international banking and the string of trade services useful for any would-be import or export venture.

If that’s your game then an Egypt bank worth getting to know is the multinational giant HSBC. Yes, they’ve been involved with the country for many years. The bank’s reputation is second-to-none. A business bank account with HSBC brings with it many advantages, not least local business know-how and expert regional knowledge. And, of course, those useful trade services. Although there’s a lot to learn, HSBC employ well-qualified people more than happy to help ease the learning curve.

So take advantage of the opportunities Egypt has to offer. Many of America’s top companies surely are. Surprised? Maybe they know a thing or two about Egypt all of us lesser mortals don’t.

There have been a number of business missions to Egypt since the 2011 revolution. You’d think, given the unrest and uncertainty, they’d stay away. Not so. The last one was in September, last year, and involved more than 100 top American executives from the likes of Google, Microsoft, Boeing, Exxon Mobil, Hewlett Packard, The Coca-Cola Company, Chrysler, Cisco, Citi, FedEx and others.

During the three-day visit, the largest-ever US business delegation to the Middle East, members met with Egyptian President Mohamed Morsi, Prime Minister HeshamQandil, members of the Egyptian cabinet and parliament, heads of political parties, business leaders, and senior US government representatives in Cairo. Afterwards, a report, Investing In A New Egypt, Revitalizing the Egyptian Economy by Rebuilding the US-Egypt Relationship, was published.

The report concluded that during the visit, delegates were reminded “that the true test of our partnership will not only be our commitments to building a new relationship with Egypt, but on how we, as the private sector, deliver on these commitments to improve the lives of all Egyptians.”

The report continued, “Indeed, all of us concerned about Egypt – including those in the Egyptian and American governments and in positions of responsibility across our two societies – face the critical task of matching our words with tangible deeds. We have a unique opportunity to strengthen the bonds between our two countries and, indeed, to build a partnership that can be a model for an entire region in transition.”

Sounds very much like opportunity is knocking, right now, for you. Are you ready to take the first step? Judge for yourself. You can read the full report here.

Contributed by Dr. Joey

News reports of the D.C. celebrations this week around small businesses prompted me to remember my grandfather. He was a small business owner who farmed and ran a country store.

He managed risks such as drought-producing weather, commodity price changes of milk and tobacco affected by global markets, and Labor Day weekend hold-up’s. While technology start-up’s longing to be the next Facebook to IPO are all over the news these days, my grandfather was the typical small business owner of his generation…

…and of today as well. While Mark Zuckerberg  had the time of his life last week, most of the business fuel that powers the U.S. economic engine is local, small businesses like my grandfather’s. These owners are the people we sit beside at the school’s PTO meeting, sing “Amazing Grace” with on Sundays in an adjacent pew, and will stand in line with come the November elections.

So while the Small Business Administration captures most of the national news this week touting small businesses via sound bytes, what do you say we make some news of our own?

What if we actually do something profitable that creates a Work Positive difference for our friends slogging through the daily mud of running a business?

Here are 3 small business investments you can make this week that pay immediate dividends:

Invest in local food products

One of the better government initiatives comes from the USDA’s support of locally grown food products. This direct-to-market approach is an ancient-future strategy as my grandfather sold garden-grown tomatoes in his country store. Also, he sold his milk to a regional cooperative that produced dairy products like ice cream and milk. Of course, their products tasted better to me because I knew the cows personally…

Who grows blueberries in your neck of the woods? Or, raises grass-fed, antibiotic-free beef? Or, free-range chickens and eggs? Or, honey?

In addition to a host of benefits like freshness, you receive the satisfaction of knowing that as you invest in these local food products, you support small business owners in your local community.

Invest in local home products

When I renovated an apartment for renting, I could have installed pre-fab cabinets made in a factory somewhere far away. But I remembered my grandfather doing business with a local craftsman who built everything from knotty pine cabinets to pole barns. This small business owner, like my grandfather, employed local citizens from the community, did good work, and that’s why he was the go-to guy.

Installing new cabinets? Find a local craftsman. He can probably build furniture, also. Discover work by local artisans whether it’s paintings or pottery to decorate your home. Oftentimes, they accept commissioned work.

Besides excellence in craftsmanship, you develop a relationship with the small business owner as you invest in unique, local home products. Hand out business cards when your friends compliment your décor.

Invest in local entertainment

That local band playing for the Relay for Life fundraiser in your community all have day jobs. They play to support the community, laced with dreams of the big-stage. Buy a CD from them. Maroon 5 or Carrie Underwood won’t miss it.

Those kids in the Summer Theater have rehearsed for weeks to perform. Sure, you can drive to an off-Broadway production of Wicked. Invest in the future stardom of a potential Tony-award winner from your hometown.

I love watching my nephew, Dan Uggla, start at second base for the Braves when I travel to Atlanta. But I also love watching the Rookie League Braves play in my hometown. The hot dogs are just as good as I support Wayne who runs the concessions that my daughter’s friend, Jennifer, serves as one of her summer jobs.

As you invest in local entertainment, you give a big-thumbs up to small business owners.

So while the SBA captures the Washington headlines this week, let’s you and I invest in small businesses in these 3 ways that pay immediate dividends to the benefit of our friends and neighbors.

About the Author:

Dr. Joey Faucette is the #1 Amazon best-selling author of Work Positive in a Negative World (Entrepreneur Press), coach, and speaker who help professionals discover success in the silver lining of their business and achieve their dreams. Discover more at www.ListentoLife.org/speaking.

Businesses are more aware of the bonuses associated with green procurement than ever before, given the vast number of benefits that it can bring. Essentially, green procurement ensures that businesses protect local environments and economies from the effects of their operations, all the while allowing a business to deliver goods, servicesand utilities. By focusing heavily on local, or at least ethically-sound national supply chains, you can do your bit for conservation.

Now, it seems that there are plenty of financial incentives to encourage manufacturers to design environmentally-friendly items, whether it’s to avoid taxes and additional costs levied against those uninterested in resource conservation, or the extra outgoings paid through utility bills because of inefficient use of energy and water.

Sourcing locally can certainly boost sales. Flyerzone, an eco-friendly supplier, works particularly hard to forge relationships with nearby clients to boost their productivity, environmental credentials and save themselves money along the way. Many other organisations are very happy to broker regional deals to save money, even if local sourcing demands is becoming a bigger public desire.

Supermarkets in particular are angling themselves towards these programs. Waitrose, Asda and Tesco are particularly proud of highlighting times when they have sourced directly from a farmer in the region, while online stores such as Farmison.com solely market around these individuals and even give you specific insights into the companies and families that sustain their sales.

Procurement policies are also beginning to heavily centre on waste regulations, for money-saving reasons as much as ethical ones. The Packaging Directive tries to minimise extraneous materials and goes on to promote energy recovery as well as the re-use of packaging; it has effectively led to EU member states introducing national policies to set a minimum level of recycling, which is steadily increasing as recovery technologies improveThe UN advocates sustainable development of products made from popular materials such as woods and metals, and the United Nations Environment Program has proposed incentives for companies to replant and recycle to limit potentially devastating deforestation and water pollution. This is limiting international companies from visiting foreign nations such as Brazil and harvesting their wares, avoiding local and national regulations through importing. When businesses demand local produce, it is becoming clearer that this approach simply isn’t acceptable.

By adopting environmentally and locally-friendly initiatives, procurement managers can reduce overall production costs, create new standards and keep a solid supply chain in their area and beyond – all the while adhering to compliance regulations..

Article Contributed by IBISWorld Analyst Eben Jose

It hasn’t been the best of times for small businesses lately, but with the national unemployment rate finally decreasing and disposable income increasing, consumers are hitting Main Street once again for some retail therapy. Often facing overwhelming competition from retail megastores, many small businesses face an uphill battle from the outset and often don’t survive beyond a couple years. Some industries, however, offer better prospects for entrepreneurial endeavors. Based on IBISWorld research, the following are the top five small-business retail sectors based on start-up costs, barriers to entry and estimated revenue growth in 2012.

Retail Sector - Estimated 2012 Revenue Growth (%)
Tire Dealers 10.0%
Handbag, Luggage and Accessory Stores 5.5%
Art Dealers 4.0%
Furniture Stores 3.4%
Specialty Food Stores 2.3%

Tire Dealers
Opening a tire dealership probably isn’t on the top of anyone’s to-do list for 2012, but based on numbers alone, it’s one of the most promising small-business retail sectors to start a business. Changes in consumer preferences toward more fuel-efficient tires and pent-up replacement tire demand from people who postponed purchased during the recession are expected to fuel industry profit in 2012. IBISWorld expects revenue to grow at an average rate of 3.1% per year in the five years to 2016, and 10.0% in 2012 alone.

Handbag, Luggage and Accessory Stores
With the recession in the rear-view mirror, people are slowly loosening their purse strings on more discretionary purchases, including of purses nonetheless. Aside from small hiccups during the recession, handbag, luggage and accessory stores have fared rather well. The dips in consumer confidence and disposable didn’t significantly discourage shoppers, and now that both of these factors are on the rise, sales are also forecast to increase. With revenue expected to grow at an average annual rate of 5.1% through 2016, this retail sector offers appealing opportunities for start-ups.

Art Dealers
It’s unlikely that consumers will come across an original Picasso at their local art dealer, but that won’t stop them from looking in 2012. Similar to most luxury goods retailers, art dealers experienced a surge in demand while the economy was booming, with wealthy consumers splurging on original art. Although that demand slowed during the recession, it is expected to return as fine art’s investment and aesthetic appeal increases. Requiring only the ability to source and value artwork, the low levels of labor and capital needed to get started in this sector make it an appealing one for start-ups. IBISWorld estimates revenue for art dealers to grow 4.0% in 2012 and at an average annual rate of 4.3% through 2016.

Furniture Stores
Although some furniture can be viewed as nondiscretionary, demand for furniture generally follows trends in consumer sentiment and income levels. Prior to this year, furniture stores experienced a harsh drop in demand as confidence in the economy fell and Americans reduced their spending. But with homeownership and per capita disposable income expected to increase in 2012, consumers will stop flipping over the couch cushions and finally upgrade their furniture. As such, 2012 offers great opportunities for furniture store entrepreneurs, especially with revenue projected to increase 3.4% in 2012 and at an average annual rate of 3.0% through 2016.

Specialty Food Stores
The foodie population is expanding fast. While supermarkets continue to serve the majority of this customer base, there is a growing number of consumers who want a finer, and sometimes even more exotic, eating experience. There’s no doubt that spending on high-end food took a hit during the recession as Americans tightened their wallets and became more price conscious. But with disposable income increasing, people are once again seeking out their favorite foods. With low initial start-up costs and revenue expected to increase 2.3% in 2012, specialty food storeowners can expect business to heat up in the coming years.

About the Author

Eben Jose is an analyst with IBISWorld, the world’s largest independent publisher of U.S. industry research. IBISWorld’s team of expert analysts covers 700 different market segments.