We all know that money doesn’t disappear it moves. Right now the price of oil is sinking which means that money is moving from one side of the market to the other. But what is the other side? If you follow the movement of money you will inevitably hit one spot along the way that cannot be missed – the consumer. With low energy prices consumers will have more disposable money to spend. This is a simplistic observation of a complicated shift in the market but does provide start-ups and growing businesses with something to talk about and respond to.
How is your business going to take advantage of consumers who have more cash?
An easy question that might not have an easy answer. If you are looking for something lighter to ease the burden of headlines that might be capturing your attention, CNN has a short video that gives a summary of what is happening right now – see “The story behind oil’s plunge“. The video notes that American consumers are going to have $60 billion dollars available to them as a result of low prices. It is safe to say that not all of them will be placing their savings in a retirement account. Many consumers will simply shift the money from their gas tank to other expenses.
Entrepreneurs and business owners would be well served to take some time to consider how they will take advantage of what is happening in the economy right now. If your business is expected to suffer because of low oil prices then begin identifying new opportunities to employ your products and services. If your business is set to grow because of low oil prices then make sure you have the resources you need (i.e. capital and people) to exploit this moment in the market.
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