SmallBizResource Blog -- SmallBizResource

Your Small Business In 2009

Posted by Gayle Kesten Monday, Jan 5, 2009, 12:40 PM ET

Like my entire family smushed into my parents' spare bedroom this time last week, so, too, can small businesses expect their space to crowd with more startups in the coming year.

That's just one of the predictions the pundits-that-be forecast for 2009. "[With] job losses high and traditional employment options limited, many will turn to self-employment and small business in 2009," says a Small Business Labs article. "And with it easier and cheaper than ever to start small or personal businesses, we expect a strong year for small business formation -- especially personal businesses."

The staff at BusinessWeek agrees: "Economists agree that further mass layoffs will continue in 2009, and the unemployment rate could reach the double digits. That means workers will turn creative about job opportunities. Look for freelancing and small business applications to explode as laid off workers attempt to strike out on their own."

Many of the people behind those businesses will be baby boomers, whose retirement funds have taken a major hit, and Gen Yers, who have fewer "traditional employment opportunities" to apply for, the Small Business Labs article adds. All told, small businesses are expected to account for a new level of innovation in all aspects of doing business (some might spin that as the recession's silver lining), with increased opportunities from government contracting programs (courtesy of President-elect Barack Obama's economic recovery plan).

Despite that optimism, the consensus seems to be small businesses will have to wait until the second half of the year to see any glimmer of economic improvement. Advice worth its weight: Focus on business fundamentals, refine your business plan, and keep your belt tightened, says Steven Kinney, president of the Economic Development Corp. of Oxnard, in a weekend interview with the Pacific Coast Business Times. (Interestingly, Kinney doesn't recommend starting a new business in 2009 unless it's for "a very tightly defined niche.")

On the technology end of the equation, cloud computing will continue to gain traction among small businesses "because it allows them to reduce up-front investment in technology infrastructure and use Web-hosted services as they would electricity or water -- paying only for what they use," according to eWeek's compilation of tech trends.

Also making the eWeek cut: notebook and netbook adoption (sales of the former outpaced desktops for Q3 '08); server virtualization as a means to reduce infrastructure costs "by sharing the resources of a single computer across multiple environments"; open-source software, which bypasses purchasing, licensing, and upgrade costs that's part of the traditional software package; and free online social networking, such as Twitter, Facebook, and LinkedIn.

Small Business Labs broadens the notebook/netbook category to mobile computing, which includes smartphones and navigation systems that are paving the way for location-based services and mobile search results. USA Today's Steve Strauss, who groups all of those under the Web. 20/interactivity banner, also predicts shoestring marketing to make a comeback. (I'd argue that's already under way.) "In this time of tight budgets, where both entrepreneurs and their customers are increasingly reluctant to part with a penny, it is actually more important than ever that the small businessperson step up their marketing," Strauss says.

Inexpensive or free ways to do so, he points out, include online video, blogging, and "old school" coupons and direct mail.

One last trend: green goes mainstream. In 2008, "being green was trendy. In 2009, it is expected," Strauss says. That translates to IT, as well, especially those initiatives with a quick ROI, says bMighty editor Benjamin Tomkins.

Related Links:

10 Resources To Help Your Business Go Green

Economy | Hardware | Internet | Marketing | Mobility | Productivity | SmallBizResource | Software

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