There is a lot of competition for funding, talent, and customers. Business leaders must create a vision, run strategies, and provide high-quality products and services at the best prices and the lowest costs available.
With all the challenges, it is important to understand the country’s competitive position where you do business. Understanding what is happening in the state will help you guide your business through any situation.
From the perspective of the competitiveness of the country, this is what must be searched for:
1. Economic Climate – The cost of doing the country’s overall business and economy
2. The regulation / tax environment – how taxes and regs impact business
3. Work climate – work workers comp, unemployment, insurance, etc.
4. Education / Workers Training – Career Preparation and Preparation
5. Quality of life – How to rank health and welfare of other countries
6. Infrastructure – road conditions, bridges, etc.
7. Government Policy – Government Expenditures and Debt Levels
Your state may print high or low in several of these factors. The key is to make sure you understand the true climate in the state, and build enough agility in your business to utilize the factors that benefit you.
Let’s dig a little deeper in the economic climate, and understand the main pieces.
1. The cost of doing business – wages, taxes, utilities, and real estate (purchase and rent)
2. Life costs – food, utilities, transportation, and housing are the main components
3. Income / Poverty – per capita income and poverty levels to know the ability of consumer spending
4. Export – defines state production from various products – consumers, industry, chemicals, etc.
5. Economic Growth – Country GDP
6. Unemployment rate – Where is your country versus someone else?
7. Business incubation – Venture capital, start-up employer
8. Economic Mobility – Do residents move up, down or polite economically?
9. energy costs – electricity, natural gas, water costs
This is a useful and interesting exercise to learn and understand where you declare attacking others. If your small business has the opportunity to expand beyond the current situation where you do business, make sure you study these critical success factors.
Be sure to combine this analysis into your strategic planning too. Not only the conditions in your circumstances increase or deteriorate in a very short time, but your business must be equipped to respond quickly to this macro change.
The macro environment, from the state to the national economy and the world, will have an impact on your success. Understand their influence, and most importantly, identify what you can take advantage of existing structures.