The Improved Economy & Your Business

Over the last few years, especially since the recession back in 2008, the economy has picked up steam with positive gains in many categories. The business climate has improved and consumers are more willing to spend their money on goods, services and entertainment. With that being said, the positive effects have rippled into beneficial outcomes for business owners everywhere. But what does the improving economy mean to your business?

Increased Competition

Since more business owners are seeing better than average sales and CEOs of large companies are expecting a gross domestic product increase of 2.8% this year, according to the Wall Street Journal, the shift in productivity may increase your competition. With numerous startups and mom & pop shops springing into the more stable commercial market, current business owners will need to beef up their marketing tactics to outshine their competitors.

Shrinking Square Footage

With the improved consumer traffic hitting the doors of business owners like a tidal wave, an increase in staffing will likely be needed to accommodate consumer demand which, in turn, lowers the unemployment rate. That being said, business owners may need to expand to larger spaces to handle new customer demand and to enhance day-to-day operations. But this expansion may make the commercial real estate market a battleground between business owners seeking larger spaces in popular areas.

Commercial Real Estate

To accommodate growing companies with bigger and better retail and work spaces, some businesses may opt to lease spaces rather than buy. This can put them into a larger space much faster than a mortgage which will allow them to capitalize on the rising consumer demand. Mortgaging a property costs more money upfront with hefty down payments and the length it takes to finalize all the paperwork is time consuming. A commercial property for lease in NJ saves business owners valuable time and gives them the option of growing into another space if they continue to expand.

If your business has seen positive changes due to the improved economy, it may be time to think about reevaluating your business plan. Take notice of customer traffic, sales, operational costs and the number of employees you need to fulfill growth. Once you've determined that you need to expand beyond your current workspace, it'll be time to find a new commercial property!