CAUTIOUSLY OPTIMISTIC CONSUMERS

The greatest recession since the great depression has influenced consumers to make a shift in mindset. Now more than ever before, the average consumer is practical, proactive and methodical. You might say that consumers have emerged from the recession to find themselves “cautiously optimistic” – taking greater lengths to stretch hard earned dollars in hard times while not letting go of quality. Digital-media expansion instantly facilitates consumer research, price comparisons, reading ratings or reviews, social networking, and effortlessly delivers coupons or savings. All this is trending towards less impulse buying as more and more people shy away from flashy displays of wealth.

Here are some tips to consider when marketing to the cautiously optimistic consumer:

Give then savings incentives. Price promotions, coupons, groupons, and the like are common place with shopping and travel decisions these days. For most consumers, any amount of savings will add to peace of mind.

Expand your digital presence. The first place that consumers go to for product information is online for some quick research before making any trips to the store. Mobile and tech-savvy consumers can now be targeted through SMS texting, Smartphone, e-coupons, Twitter, Facebook, and search engine optimization.

Get the most out of segmented campaigns. The challenge is to put the right message in front of the right customer at the right time and place. Targeting or segmenting by geography, demographics, consumer behavior, and buying patterns can help to focus your advertising beam on strategically selected subgroups that are most likely to respond.

Pay attention to economic projections and plan tactfully. Economists cite over and over that consumer confidence is directly affected by consumer’s willingness to spend. To see this big picture, think about the overall patterns of the economy as a whole and not just a small section of it. For example aggregate retail sales growth has decreased somewhat recently but the consolidated total is still higher than what it was in 2009, this is an indication that the overall economy is healthier than what it was a year ago.

Pay close attention to cautious optimism which is a driving factor for today’s thrifty mindset and if you design a plan now, for the season ahead, you may find yourself capitalizing on discounts and special offers.

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SMALL BUSINESS JOBS ACT

The bill signed on September 27, 2010 by the President is aimed at stimulating small business growth by providing tax breaks and better access to credit. Some of the top benefits will include allocating $730 million to fund more than 1,400 businesses with loans pending in the Recovery Loan Queue. Additionally the allowable maximum loan size for SBA loan programs will increase substantially and support to state small business lending programs will be boosted by $15 billion.

Along with this new access to loans, small business tax cuts will also help stimulate business growth. There will be no taxes on capital gains from key small business investments. Amount of business investment write-off increases to $500,000 this year and phasing out at $2 million. There will be an extension of the 50% bonus depreciation through 2010 so all businesses can make new investments now and experience accelerated tax cuts for capital expenditures.

Another aspect of the Small Business Jobs Act are deductions. Tax deductions will be available for health insurance costs this year that will reduce the amount of self-employment tax obligations. Cell phone business use will be easier to deduct. Start-up expenditures deduction immediately increases from $5,000 to $10,000 for entrepreneurs who start a new business this year. Small business carry back for general business credits is allowed to offset five years of taxes.

For more information visit www.whitehouse.gov

Now is a great time to start a business. Incorporate at www.AmeriLawyer.com or visit www.AmeriLawyer.com/411 for all your Corporation or LLC service needs. If you are a member of the Spiegel & Utrera, P.A. General Counsel Club, call 1-800-603-3900 for strategic business advice or to discuss any legal problem that you may have.