As the year 2001 winds into its final quarter, it is safe to
say we're not in the 20th century any more.
The unprecedented long cycle of prosperity we enjoyed in the
90's led many to believe that we were experiencing a new
economy; one that was immune to the ups and downs we knew in
the past. This year, that notion came to a crash along with
the NASDAQ. The events of September 11 and the aftermath
that continues to ripple through the world economy prove
that we are indeed in a new era. How it will affect your
home business is anyone's guess.
Many pundits predicted that consumer confidence, already low
in 2001, would plummet after the attack on the World Trade
Center. While the economic shakeout has indeed been
disturbing with layoffs, poor profit reports and entire
industries asking Congress for bailouts, in the case of
consumers, the experts appear to be wrong. A Gallup Poll
report issued on October 17 states that 'today, 38% rate the
economy in positive terms excellent or good up
slightly from 32% in a Gallup survey taken Sept. 7-10.
'Thirty-three percent say economic conditions as a whole are
getting better in the United States, up from 19% just before
the attacks.'
Gallup speculates that a 'rally effect' is behind the good
numbers, and notes that approval of the President is at
record levels, while Americans are behind Congress at levels
not seen in 27 years.
Increased trust in the U.S. Government may be a byproduct
of the most visible reaction to the terrorist threat: The
American flag is everywhere. It is now cool to wear your
patriotism on your sleeve not to mention your home, your
business and even flying from the antenna of your car.
But in an unusual response to an extraordinary threat,
government officials from President Bush to Mayor Giuliani
have urged citizens to exercise their patriotism in a
unique manner: by spending as much money as they possibly
can. This would seem like a perfect marketing opportunity,
and many businesses have created ads that play on the
nation's new sense of duty - with mixed results.
'There's no mixing green with red, white and blue,' said the
Los Angeles Times in a study of post Sept. 11 advertising
campaigns. Nothing will alienate your customers quicker than
the appearance of trying to cash in on a national tragedy.
A less visible but possibly more lasting reaction to our
changed world is a focus on the things that really matter:
Family, community, home and values - what trend watcher
Faith Popcorn calls 'cocooning.'
It is a term Popcorn coined back in 1984 as a reaction to
the news of the time: environmental problems, overindulged
Yuppies and the conspicuous consumption of the Reagan era -
all of which were surpassed by the excesses of the decade
we just completed. The first years of this century will
accelerate that trend, she says.
It's 'about insulation and avoidance,' Popcorn told the Los
Angeles Times. 'We know now that it's important to
understand other cultures and international politics. But
we're going to learn by watching TV and reading, not by
traveling.'
Popcorn says that 'men and women are functioning more as
partners instead of adversaries.' She told the Times that
families will decide together on big purchases, 'rather than
men buying their toys, and women saving for their luxuries.
The question will be, what does the family need rather than
what does the individual want?'
Sell products that answer that question and you may well
ride the latest economic wave:
> Anecdotal evidence indicates that the new world order
has prompted Americans to appreciate the simple
pleasures of life. The 'simple' movement has been in
force for some time; the events of the last several
weeks may accelerate it. Working parents may not be so
willing to work longer hours to afford bigger homes -
look for increased demand for home improvement.
Furniture, decorating and cooking will be in.
> Demand for home security is likely to increase, as will
home entertainment.
> Between the threat of layoffs and the desire to be with
family, the trend toward working at home may grow at an
even faster rate than in previous years. Home office
furniture, equipment and supplies will continue to be in
demand. Interest should grow in network marketing and
other easily financed home business programs.
September 11 may have marked the end of the world as we
knew it - but not the end of the world, or your home
business, which may emerge from this period stronger than
ever.
About the Author
Donna Schwartz Mills is the Editor/Webmaster of the NOBOSS
ParentPreneur Club: http://www.parentpreneurclub.com
Donna also edits NOBOSS Online, the newsletter for home-based
entrepreneurs doing business on the web. To subscribe, send
a blank email to: online-subscribe@noboss.com.