Top economic predictions for your business plan in 2014: We have the info you need for your future business right here. As 2013 has met its end, it is time for all entrepreneurs to start making their preparations for their new year. Even though you might not be a fan of economic forecasts, you should have some idea of what you want the future to hold for your business.
To help you with your business plan in 2014, we have compiled a list of the top 4 economic predictions for your business plan in 2014. Any entrepreneur should take these into account in the following months. Curious to see what the New Year will bring and want to learn how you can prepare for it? Let’s take a look at the countdown of the top 4 economic predictions for your business plan in 2014.
No. 4: Learn what your business can do and what it cannot do
One of the biggest pitfalls entrepreneurs have to learn to avoid in 2014 is taking up more than their business can handle. What will define your success in the year to come is setting up a strategy that ensures your business can reach the goals you have set for it. The best strategy involves saying “yes” to actions that are possible and achievable and saying “no” to all others.
Much too often, entrepreneurs make the mistake of not saying “no” when they need to. No one business can be everything to everyone, so make sure that your business plan in 2014 is not so broad that it encompasses unrealistic goals.
No. 3: Long-term interest rates will increase
While short-term interest rates are not expected to start rising until the beginning of 2015, the Wall Street Journal expects long-term interest rates to begin to slowly rise in the following months. This is a prediction with which the Survey of Professional Forecasters, issued by the Federal Reserve Bank of Philadelphia, agrees with.
No. 2: Inflation and commodities will be mild
For 2014, it is expected that inflation will only rise mildly. According to the Wall Street Journal and the Survey of Professional Forecaster, the Consumer Price Index will be around 2.1 percent. This, combined, with an unemployment rate of 7.1 percent predicted for 2014, will mean that the economy will most likely not increase labor inflation.
The only costs predicted to increase in the following year are health care costs, largely thanks to the enactment of Obamacare. Nonetheless, this will not affect all companies equally. Before making any assumptions, make sure you consult with your Human Resources department. On the flipside, the International Monetary Fund expects a 4.3 percent decrease in the price of non-fuel commodities.
No. 1: Economic growth will be moderate
In the US, according to the Survey of Professional Forecasters, 2014 will bring a 2.6 percent economic growth, inflation adjusted. While for some companies the percentage might increase to as much as 4.3 percent, economic growth remains moderate in the months to come. This means that, while the aftermath of the recession is starting to dwindle down, you will still have to play it wise in 2014 and ensure that you only take calculated risks when it comes to your business.
When it comes to the rest of the world, the International Monetary Fund predicts a 3.8 percent growth, inflation adjusted. Once again, this figure is moderate and it translates into the fact that you will still have to be careful of how much you are willing to take business risks in 2014, regardless of where you venture operates.
If you enjoyed our list of the top 4 economic predictions for your business plan in 2014, check out our “Top 12 Best Jobs for 2014.”
