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:
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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.
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Demand for home security is likely to increase, as will home entertainment.
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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.
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Donna Schwartz Mills is the Editor/Webmaster of the NOBOSS
ParentPreneur Club http://www.parentpreneurclub.com
, helping parents work at home so they can be there for their
families. Get the latest home business tips and tools by subscribing
to ParentPreneur Weekly at mailto:subscribe@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 mailto:online-subscribe@noboss.com