A New Scenario for Small and Medium Entrepreneurs in 2024
A new year is about to begin.
Just like individuals, small and medium enterprises hope that the coming year will be one of great breakthrough or perhaps the most extraordinary year ever.
For this reason, plans, mind maps, and projects are created.
A part of these plans is based precisely on the entrepreneur’s necessary ability to anticipate the future and prepare accordingly.
This is a very complex task.
Yet, it is always better to have a plan, even if we will have to modify it later, rather than to be without one.
So, I thought that a series of articles discussing the challenges awaiting us in the next year would be a good way to help you.
Today, I want to talk to you about adapting to the variable interests of the ‘consumer’.
But before that, let’s have a brief introduction to the coming year.
The year 2024 is shaping up to be a crucial period of transition and transformation for the business world.
After years of unprecedented challenges, including a global pandemic and significant economic turbulence, small and medium-sized businesses are facing a rapidly changing commercial landscape.
This context offers both unique challenges and opportunities for entrepreneurs who are ready to adapt and innovate.
2024 is characterized by several key trends that will shape the business world.
First, we are witnessing a change in the monetary policy of central banks, with the American Federal Reserve and other similar institutions beginning to lower interest rates in a context of moderate inflation.
Although inflation remains at 5%, consumer behavior reflects increasing caution, leading to greater thriftiness in spending.
For small and medium entrepreneurs, this implies the need to revise their pricing and value strategies to attract more frugal customers.
At the same time, we are witnessing an 11% increase in renewable energy consumption, signaling a growing interest in sustainability.
However, fossil fuels continue to dominate the energy scene, posing a challenge for those companies seeking to align with more sustainable principles.
Adapting to these emerging preferences is not just an ethical issue but becomes an essential business strategy.
The technological field is seeing a revival of IT spending, with artificial intelligence (AI) generating significant interest but also challenges in terms of revenue generation and regulations.
For small and medium entrepreneurs, AI offers immense opportunities but requires careful navigation among potential risks and benefits.
In this context, it is clear that 2024 is not a business-as-usual year.
Small and medium entrepreneurs must face complex challenges that require a holistic and strategic approach.
Innovation, adaptability, and a deep understanding of market dynamics will be crucial for successfully navigating this constantly changing landscape.
Now, let’s delve into the details.
Small and medium entrepreneurs face the challenge of adapting to the variable interests of consumers, shaped by a rapidly evolving economic context and a growing social and environmental awareness.
With increased frugality due to prolonged economic uncertainty, consumers have become more selective in their purchasing choices, seeking products and services that offer not only economic value but also social benefit and sustainability.
It is therefore necessary to understand the modern consumer.
The consumer of 2024 is informed, connected, and carefully evaluates their purchasing choices.
To win them over, businesses must go beyond merely offering a product or service: it is essential to deeply understand the needs, expectations, and values of customers.
This means not only adapting the offer to their spending capacity but also aligning with their ethical and environmental values and being clear about the company’s mission.
You are not just selling toothpaste; you are selling an existential vision through toothpaste.
And the customer wants to feel, wants to be sure that when they brush their teeth, they are actually doing something good according to their morals and their personal interpretation of reality.
In a market where differentiation is key, innovation and personalization become critical tools.
Small and Medium Entrepreneurs must leverage their agility to offer customized products and unique experiences that directly respond to the specific desires of customers.
This can include creating tailor-made products, personalized after-sales services, or interactive and engaging shopping experiences. Exactly.
Not only does the customer want to be sure that by brushing their teeth, they are making the world a better place.
They want the toothpaste to be personalized for them and to perfectly follow their preferences.
They can’t have a toothpaste that is the same as everyone else’s!
In this scenario, targeted marketing and effective communication assume an even more central role. Small and Medium Entrepreneurs must use data and analysis to better understand their target markets and customize advertising campaigns to respond to these insights.
Transparency, authenticity, and consistency in communicating company values are fundamental to building a bond of trust with consumers.
In conclusion, 2024 requires small and medium entrepreneurs to strategically and creatively adapt to the variable interests of the consumer.
Understanding the customer, innovating, personalizing, and communicating effectively are the keys to not only survive but thrive in an increasingly complex and multifaceted market.
Small and Medium Entrepreneurs that successfully navigate this landscape will be those that not only understand the needs of their customers but also align with their values and expectations.
The magic formula?
It may seem strange to you, but it’s the opposite of what I’ve just highlighted.
Pursue your way of seeing life and propose this philosophy to those who think of buying from you. Avoid running after everyone, adapting, changing your communication because ‘otherwise.’
That’s a terrible road.
There are millions of people who think like you.
Be yourself, consistent and congruent with your values and way of thinking.
Be clear with your customer.
Never try to sell to someone who is different from you.
Otherwise, you’ll become like a weather vane in the wind, and your ship will become unmanageable.
Use this filter to reread the article, and you will have an immense power in your hands.
An example?
When I write ‘understand your customer,’ I mean ‘deeply understand who you are, what you think, and then propose the product that you would buy yourself.’
This means giving a voice to those who think like you.
Trust me, it’s very difficult in the initial phase because you will have to fight with an inner voice that tells you that you need to sell to everyone by adapting the product to make it liked by everyone. That’s a terrible mistake.
Author: Koan Bogiatto
Koan Bogiatto has explored approximately 123 countries around the world and, after living in Italy, Spain and then in the USA, Florida. He is the only Italian to have received the prestigious Green Card for Extraordinary Achievement and Outstanding Individual from the U.S. Government, in the fields of education and coaching. In the past Koan has served as a consultant for eBay, INA Assitalia, Wind, 21st Century, Alviero Martini, Politecnico di Torino, IUM Monaco, Sai, De’Longhi Group, and Il Sole 24 Ore. “He is the founder of several successful companies in various fields, including coaching, education, real estate, and cryptocurrency trading, to name a few.”
