Be strategic as you evaluate your market reach.
Beaulieu's recommendation came with the release of his economic forecast at the recent Nexstar® Super Meeting in Austin, TX in September.
Two years ago, Beaulieu predicted the recession, and told Nexstar member contractors to stockpile their cash and, “batten down the hatches.” Many Nexstar members took heed, and where able to capitalize on the improving economy during the upswing.
Now, Beaulieu claims leading indicators show better days lie ahead in 2012.
Create a competitive advantage; identify what
you do well that your customer
values, and do more of it.
“If you’re busy today, your major concern should be that you’re not prepared for how busy you’re going to get,” he said. Beaulieu shared insight with 400 Super Meeting attendees on how to chart their course for the next few years. "We'll see recovery in 2011; 2012 is going to be stronger than 2010, and we’ll continue to see growth for the first half 2013,"Beaulieu predicted.
Beaulieu’s Recommendations for 2011 and 2012:
- Let go of the past and look towards the future.
- Be aggressive with your plans for the future - expand your business.
- Borrow money now and borrow so much that you can’t sleep at night. There is non-bank money available, up to a few trillion dollars.
- Create a competitive advantage; identify what you do well that your customer values and do more of it.
- Increase your prices in 2012.
- Get fixed long-term interest rates because current interest rates are the lowest that we will experience for some time.
- Buy real estate in urban areas and on the water – avoid the suburbs.
- Tie 50% of your equity to companies outside the U.S.
Prepare for 2013:
- Buy stocks that wrap around demographics, inflation and higher taxes, and evaluate the markets are you selling to.
- Be strategic: the Federal Reserve is thinking about going from an acceptable rate of 2% to doubling it to 4%, so plan accordingly.
- Taxes will increase to pay off US debt.
Prepare for 2014:
"We’re going to hit another mild recession in 2014, so think about products and services you aren’t selling today that you could sell in 2014," Beaulieu said.
”Twenty-one percent of all global manufacturing takes place in the US. China does 12%. We're still the global manufacturing center, and that's the key to our future.”
For more information on the Nexstar® Network, visit nexstarnetwork.com. For more information on the Nexstar Super Meeting, contact Kari Logan at (763) 559-6058.