By Keith Jones, Special To The Tri-State Defender
As the second half of 2024 is underway, Memphis entrepreneurs are confident in their businesses despite any lingering uncertainty. Memphis is one of the top cities where entrepreneurs are thriving. A recent study by Blacktech Week listed Memphis as one of the best metropolitan areas for Black-owned companies. A recent MagnifyMoney study named Memphis one of the best cities for women entrepreneurs.
According to new Bank of America research, business owners anticipate revenue growth for the year ahead and are feeling confident in the overall economy, despite economic concerns.
Entrepreneurs’ concerns around several key economic factors remain elevated nationwide but are down from last year. While concerns around supply chain issues and a recession are down significantly, concerns around inflation and interest rates only slightly dropped, as the Federal Reserve holds interest rates at a 23-year high until inflation becomes more manageable.
Additionally, the political environment and health care costs are top of mind for local business owners, both seeing increases since 2023. Despite these concerns, the majority (65%) expect their revenue to increase in the next 12 months.
So, how can business owners meet their revenue expectations as we head into the second half of 2024? Here are three strategies local business owners should consider implementing to ensure success and growth this year:
Conduct a SWOT Analysis
It’s always smart to conduct routine evaluations of your business, but especially ahead of any upcoming shifts in the economy or impacts from the political environment. Consider finding time to analyze your business’ strengths, weaknesses, opportunities and threats (SWOT).
A SWOT analysis not only helps evaluate the state of your business but will help identify what changes and tradeoffs are needed to ensure success. In fact, 70% of local business owners say they have made tradeoffs to maintain profitability, including personal sacrifices, such as working more hours or reducing their own salary, and operational changes, such as increasing prices or reducing marketing costs. Before implementing any similar adjustments, make sure your decisions are informed by your SWOT analysis results so you can continue to strengthen and build your business.
Monitor Your Cash Flow
By tracking current and anticipated revenue and comparing it with your business’ expenses, you can anticipate when to adjust your business model to avoid unnecessary costs. Digital tools can be helpful to future-proof your business.
According to our research, 71% of local business owners have digitally optimized their business and operations in the past 12 months, and over half of those local business owners are using mobile apps or business banking online. These digital tools enable easier financial tracking, as business owners have more flexibility to access their finances wherever they are, whenever. When faced with economic uncertainty, this can be particularly useful, allowing for faster and more informed decision-making around cash flow management.
Reconnect with Customers
While the year may feel tumultuous for your business, remember that a worrisome economy impacts your customers as well. Take time to connect with your customers and build brand recognition so they continue to show loyalty even when times are tough. 82% of local business owners have implemented tactics to engage with their clientele, whether that’s personalizing interactions with customers, taking steps to implement customer feedback or hosting community events. Consider if any of these options are viable to help your business stand out in your community.
You can also look to social media platforms to help humanize your business. 65% of local business owners use social media to interact with customers and promote their business through responding to comments, posting about themselves and their employees and promoting upcoming sales.
Whether your local business has been around for decades or is just opening, there are always steps to take to strengthen your business, especially in an uncertain economy. Bank of America is committed to providing the resources necessary to operate and grow a business at every stage, in every circumstance.
Keith Jones is the Vice President of Business Banking, Bank of America, Memphis. The views expressed here do not reflect those of The Tri-State Defender.
