Money is getting tighter by the day, and prices of gasoline vary up and down, but the trend is ever upwards. While we in the US are not as bad as some other countries, high transportation costs are beginning to bite.
Gasoline prices are already in the $4.50+ region in many parts, and will soon force businesses to think more locally. The days are passing fast when a factory big or small could be set up in the middle of nowhere, then transport their goods all over the country.
Transportation costs will soon see to that!
The future in the mid-term will be much more locally based than it is now. People will not be able to fly constantly as they do presently, and cars will not be used to the same extent they are now either. There is an energy deficit until alternative fuels are more widespread, and frankly, the technology doesn’t yet exist to make say, electric vehicles a viable alternative.
The electric cars developing now will fail because their running costs are too high. Did you do a double-take then? Yes, that’s right! Go find out how much a replacement battery pack is for your shiny new electric car before you purchase it! In some cases, it costs the better part of buying a complete new car!
So, returning to local business, if you are clever and forward thinking, then set up your business now, or start changing it to take the new economic conditions into account. Build your business locally and make it stay local too.
Rely on local producers as much as you can to keep costs down in future. And make sure your local producers are also relying locally for their parts/products too!
If you need more than one location, then they have to keep in constant contact to be efficient, so use the internet for communications between them. Sounds obvious I know, but you’d be surprised how slow small businesses can be to wake up to the modern world. Skype and other VoIP services are the way to go.
Beat the big guys at their own game before they wake up and beat you!