How Changing Demographics Could Impact Your Business
Demographics are crucial to small business owners to find out where the best opportunities exist and to develop appropriate marketing strategies to target customers. During the recession of the late 2000s, the small businesses that survived and even maintained growth were those that targeted and served specific demographics.
If you’re in the market to purchase an existing business or buy a franchise, paying attention to growing demographic groups is one of the best ways to make sure that your business is profitable. Here are some of the demographic changes to look out for in the coming years:
The Boom of the Baby Boomers
As all of the baby boomers head towards retirement, more and more people in America are going to require elderly care and services. Hospice care and assisted living have consistently been some of the fastest growing businesses over the last decade, and this will continue for many more years.
Take a look at these important statistics: In 2009, less than 13 percent of the population was over 65. In 2030, 19 percent of the population will be over 65. Also, over 70 percent of individuals over 65 years of age require some type of long-term care.
Besides senior care, there are many other types of businesses that can target elderly populations, including food, exercise, nutrition, clothing, guardianship and legal services.
An Increasing Latino Population
Another significant demographic change in America is the increasing number of Latinos who are working, living and buying goods and services in the country. Latinos only accounted for about 12% of the total U.S. population in 2000, and by 2010 this had increased to over 16%.
Latinos in the United States have higher birth rates than other ethnic groups, so this is a consumer group that will only become more important in the years and decades to come. Business and franchise owners are responding to these demographics in many different ways. For example, there are now more tax and insurance franchises that cater specifically to Latino clientele including Listo, Pronto and Estrella. Fiesta Auto Insurance and Tax is one of the largest Latino franchises in the country, and it continues to grow steadily every year.
The Quickly Growing Asian Population
White the Asian population in the United States is much smaller than the Latino population, it is also growing quickly. These groups are bringing their own consumer needs and tastes, and franchises would do well to target them. It’s important to remember that there are many different ethnic groups and nationalities that qualify as Asian, and many of these groups will need to be targeted and communicated with in unique ways.
A great source for U.S. Demographics is the Small Business Administration. Click here for more information.