There's lots of competition for funding, talent, and customers. Business leaders have to create vision, execute strategy, and deliver high quality products and services at the best price and lowest cost available.
With all of those challenges, it's important to understand the competitive position of the state in which you do business. Understanding what's happening in the state will help you guide your business through any situation.
From a state competitiveness perspective, here's what to look for:
1. Economic Climate - cost of doing business and overall state economy
2. Regulatory / Tax Environment - how tax and regs impact business
3. Employment Climate - workers comp costs, unemployment, insurance, etc.
4. Education / Worker Training - college and career prep
5. Quality of Life - how health and well-being ranks against other states
6. Infrastructure - condition of roads, bridges, etc.
7. Govt Policy - government spending and debt levels
Your state might score high or low on several of those factors. The key is to make sure you understand the true climate within the state, and build enough agility in your business to take advantage of those factors that are in your favor.
Let's dig a little deeper on economic climate, and understand the primary pieces.
1. Cost of doing business - wages, taxes, utilities, and real estate (purchase and lease)
2. Cost of living - food, utilities, transportation, and housing are the primary components
3. Income / Poverty - per capita income and poverty rates tell consumer spending capabilities
4. Exports - defines state production of various products - consumer, industrial, chemicals, etc.
5. Economic Growth - state gdp
6. Unemployment Rate - where is your state positioned versus others?
7. Business Incubation - venture capital, employer start-ups
8. Economic Mobility - are residents moving up, down or sideways economically?
9. Energy Costs - electric, natural gas, water costs
It's a rewarding and interesting exercise to study and understand where you state falls against others. If your small business has an opportunity for expansion outside the current state in which you do business, make sure you study these critical success factors.
Make sure to incorporate this analysis into your strategic planning, too. Not only can conditions within your state improve or worsen in a very short period of time, but your business must be equipped to respond quickly to these macro changes.
The macro environment, from the state to national and world economies, will impact your success. Understand their influences, and most importantly, identify what you can do take advantage of the structure in place.
My name is John Sipple, and I am the President of Ignite Business Coaching. As a business coach, I work with business owners, leaders, and entrepreneurs to grow businesses profitably in stable and uncertain times, and still attain the quality of life you want outside of work.
Visit Ignite Business Coaching at BusinessIgnite.com, or contact me today! Call 859-420-5950, or email me at John@BusinessIgnite.com.
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