The business landscape changes constantly, and entrepreneurs who keep up with trends are more likely to thrive. They should observe four types of trends: economic, social, technological and regulatory.
Entrepreneurs should keep a close eye on economic trends to gauge whether an industry is growing or waning. They should also keep track of consumer and market habits to see how they may change over time.
As a result, economic trends often reveal new business opportunities, such as when consumer spending spikes during an economic downturn or when millennials move into the workforce. Social trends can also provide insights into the motivations and preferences of consumers, such as when support for a slow-food movement boosts local restaurants or large pet super marts outpace smaller, family-owned shops.
Technological trends offer new ways to reach customers, streamline operations and enhance customer service. For example, an increase in the use of artificial intelligence (AI) can help automate repetitive tasks and free up human resources to focus on higher-level strategy. It can also improve the customer experience by reducing help desk wait times and providing self-service options.
Lastly, regulatory trends can impact the way entrepreneurs do business, such as when state data privacy laws require businesses to rethink their policies. As a result, some entrepreneurs have started firms that help companies remediate risk, manage and assess compliance standards, and offer data security audits. Others have tapped into the desire of employees to feel valued and supported by their employers by expanding employee benefits programs.