To the consternation of many, I’ve quietly noted for several years that the rise in fuel costs would also have some positive impacts on us and on our society – in addition to the obvious negative ones.
It’s not a liberal or conservative issue, it’s a pragmatic one.
Among other things, higher fuel costs will…
- force us to become more self-sufficient, both as individuals and as communities.
- force us to become better thinkers. The smartest business now has even more of an edge.
- force us to become better planners.
- force us to become far more responsible to ourselves, our neighbors and to our businesses.
- force us to deliver even more services via the Internet
- force us to use the Internet to fine tune the logistics of every aspect of our businesses
- require our communities to become far more dependent on the individuals and businesses within, rather than on a largely-faceless community 600 or 6000 miles away.
That last one is where the business that has a personal relationship with its clients will shine.
What should fuel costs have the small business owner thinking about?
The obvious thing is the rising cost of shipping and transportation of goods.
While it is “really cool” to order a new computer on the internet at 2am and then be surprised to have the Airborne guy standing in my driveway with the computer box at 8am that day, the cost of making that happen is far more than the $5 extra I paid to make it so back in 1987.
The changes that rising fuel costs cause require some thought, no matter what you do or sell.
Some might not be so obvious, and those are the ones that can make the most difference.
Look for things that are below the radar of “most people”.
One example: the real estate business
Evidence is appearing that prospective home buyers are looking far more closely at the location of homes and the resulting commutes.
The higher price of homes close to town is offset by shorter commutes to work and shopping. How many people in California (much less Boise) would rather spend that extra 2-4 hours a day with their family rather than on gas, as they stare at the back of the car in front of them? Suddenly, even with California wages, those numbers become significant.
If you are a Realtor or a mortgage broker, you have to be watching for small changes in people’s behavior before they become large changes. You might start selling more homes in areas that are less congested (slower traffic, longer commutes), yet still close in and convenient.
You might have a new tool that takes MLS address info, ownership years, employer data and change real estate agent farming forever.
Maybe you “niche yourself” by offering a service for employers that helps their people find homes closer to the office, or a similar service for employers who are moving employees to the area.
You might focus your attention on selling those remote homes by touting their access to broadband internet and place your marketing attention on work-at-home business owners, telecommuters and the like – people who are far less concerned about commuting distances.
Distances to day cares from work and homes are now more important. This will affect your ability to find employees. Minimum wage work will be chosen more carefully, since commute costs will eat into a small wages quickly.
If you were having a hard time finding people a year ago, commute costs due to fuel prices might complicate that further.
You must put far more thought into those 3 little words: location, location, location.
The best Realtors are going to find smart ways to leverage today’s issues, as they always have, only the parameters have changed.
It isn’t just real estate though
If you do a lot of mail order/internet order/phone order business, how are you preparing your business to do more locally?
What if shipping costs tripled tomorrow? Would your mail order business survive? Where would you find “replacement” customers locally? How would you attract them? Would you focus on regional mail order clients vs national? What changes in your product line are necessary to succeed on that refocused client market?
These are things you should already be thinking about, no matter what you do.