2014: A Year Of Continued Growth

Driving growth is always a top priority for any business, large or small. Fortunately, current trends suggest a climate conducive to expansion. Trusted media outlets, including The Washington Post, Kiplinger, and Reuters, have issued optimistic economic forecasts for 2014. The Associated Press reports that "consumers will spend more. Government will cut less. Businesses will invest more. And more companies will hire. Add it all up, and you can see why expectations are rising that 2014 will be the best year for the economy since the recession ended 4 1/2 years ago."

According to a report released by the Commerce Department last month, the fourth quarter of 2013 saw the U.S. economy expand by an annual rate of 3.2 percent. This percentage was achieved in spite of the government shutdown, which seems to have had little effect on consumer and business spending. Looking ahead, The International Monetary Fund projects global economic growth for 2014 at 3.7 percent, and predicts a rise to 3.9 percent in 2015.

Technology: Biggest Growth Factor

Technology is probably the single biggest factor in driving growth for small businesses going into 2014. Technological measures are allowing many businesses to operate with greater efficiency, eliminating the need for new hires and allowing for greater growth potential. SurePayroll, a company specializing in small business payroll services, reports that 84 percent of small businesses are using electronic means of creating customer awareness, including websites and online advertising. The study showed that 73 percent of those surveyed use their company websites to sell products or services; 42 percent have used online ads; and 27 percent employ tablets and other mobile devices to demonstrate their wares. Cloud computing is also becoming more prevalent in the workplace. The use of this storage and sharing tech is helping to foster greater synergy within businesses.

The Freelance Boom Continues

Another area experiencing a boom is the freelance economy. Forbes reports that one in three Americans are freelancers, and that by 2020 it's expected that half of the workforce will be primarily freelance. According to Forbes, "the fre"e economy is exploding at exactly the same moment that companies are undergoing a major shift in how they hire. Talent is moving from a fixed cost to a variable cost, with companies staffing up and down as needed." These factors are leading to a historic break from the traditional pattern, where a downturn in the economy typically leads to an increase in freelancing. "As we look to the economy of 2014, one thing is certain. The exploding freelance economy will drive change. Those who understand these changes and can adapt will be best prepared to take advantage of the freelance revolution," Forbes says.

2014 looks to be an exciting year, with many opportunities for businesses to drive growth. Feel free to get in touch with us for more information on how these factors may affect your business.