Optimism For Next Year

Small business leaders should be looking at a more positive economic environment in 2024.

This bold statement is beginning to echo across the nation as we approach the New Year. While there are still pundits arguing for a possible recession, more and more, the nation is seeing signs of positive growth in 2024.

Some advisors are beginning to urge smaller enterprises to begin building resources that enable companies to fill increased demand from clients.  Right now, overseas suppliers of goods have added capacity after three years of slower growth. Locking in costs-of-goods sold should be a priority along with commitments for added inventory in the first quarter.

One harbinger of increased economic activity is advanced bookings for such trade shows as CES for the latest in computer technology for goods and services across industries and the National Homebuilders Show. Both of these massive gatherings report they are sold out in terms of both space and events.

Another possible clue is the first reported reduction in home interest rates reported for so-called Jumbo Mortgages, for large, mansion properties.

For small business leaders, the most important statistic has been credit card sales used to buy business related items. This number, closely guarded by the big card issuing companies, was revealed to be steady according to a report in The Wall Street Journal. More importantly, companies offering operations management services closed the third quarter with a surge of activity, averaging 9% year-over-year.

Card services offering one-year before payment is due contracts for goods or services said new accounts jumped 11 percent in the third quarter.

For small business leaders, there are three key choices in the first quarter of 2024:

1. Be prepared for an economic rebound.

2. Have enough cash or credit quickly available to fulfill increased client demand.

3. Don’t be afraid to jump on any economic expansion.

It is easy to be like Chicken Little and think the sky is falling. Being more optimistic takes courage.

Tags: economic-development, economy, georgia, global-economy, inflation, mar-23, monetary-policy