Times in business are changing. No longer are business plans based solely on profit and sales margins from the previous year or month. More and more businesses are taking community demographics into consideration when planning business strategies. In order for a business to succeed, a proverbial finger must be held tightly to the pulse of the community.
Whether you are a business owner or a business manager, it is becoming more and more important to understand those who shop your business. A community’s demographics will lend an insight into who is living within your businesses community and therefore, who will be shopping within your walls. It is important for all businesses to understand a communities diversity and the implications on business plans and strategies.
In order to better plan your business strategies based upon community diversity, a business owner or manager must first learn the community’s make up. The local Chamber of Commerce as well as several online sources will offer your community’s diversity percentages updated yearly. Using these percentages to tweak a business plan will be the difference between a business just making it to expected sales goals and a business that flourishes beyond those goals.
Understanding the community’s diversity is simply the first step in gearing your business toward your potential consumers. Business managers and owners must also learn how to use this knowledge to improve sales and service. If a community has a diversification of 50% Caucasian, 30% African-American and 20% Hispanic, your business offerings should reflect these percentages. In this case, a well equipped African-American and Hispanic selection of merchandise or services would help your business to better reflect the members of your community. As a business owner or manager, if you are not familiar with the types of merchandise or services you should have available to meet the needs of your community, try visiting other local businesses aimed directly for the sections of the community you are unfamiliar with and learn from those who are comfortable with this form of business diversification.
Business growth is directly reflective of the growth of a community. If a business does not offer what a community is looking for, it will soon be forced out of the business spotlight. In order for a business to flourish in any community, the business must mirror the faces in the community. Diversification of business offerings based upon a community’s diversity is simple, sound business practice.