I'm not saying that the US car manufacturers are small business. They're not, they're very, very large. However, I think that small companies can learn something from the miscalculations that Ford and GM have made in recent years.
While Detroit was making a name for itself as the large expensive SUV manufacturers, they forgot to watch the growing consumption of gasoline growth and the flattening of oil producers output. Additionally they evidently didn't worry about the dramatic increase in sales of gasoline-burning cars and motorcycles in emerging markets such as India and China. Sales of large cars or SUV's have tanked while sales of Vespas (small gas-efficient motorcycles) and bicycles have been growing dramatically and Detroit is left with brands that are the antithesis of small fuel-efficient cars. So automotive manufacturers that have brands which represent fuel-efficient cars, such as Honda and Toyota are setting sales records.
I believe that there are some parallels that can be drawn between the auto industry and the various payday loan companies that are currently making a killing. They charge a great deal of money for short-term loans, to help the growing ranks of cash-strapped consumers, make it to the next payday. The threat for the auto industry was based on the demand in the free market, while the payday loan business is currently threatened by legislation, which may limit the charges that they can demand.
Are there any threats like this in your business or industry? It's a good idea to keep an ear to ground to hear what might be coming your way.
By the way, we just put out our first e-book! Go to our home page and take a look at our 35 page e-book on business planning.
Cheers,
Chris Hawkes
