Entrepreneurs and small business owners are the economic engine of the United States. In addition to selling, operating their businesses, generating new and better production and management processes, they must be aware of new social, technological and economic trends.
One aspect they need to pay attention to, is generational changes, in other words, who is buying more today and who will buy more in the future.
Generations were established with the purpose of delimiting and analyzing sectors of the population according to their year of birth. Currently, economic activity in the United States is on the shoulders of Generation X (born between 1965-1980) with 33%, Millennials (born between 1981-1996) 35% and Baby Boomers (born between 1946 and 1964) 25%. But, according to Purdue University's compilation of data, Generation Z (1997-2012) is beginning to make its appearance in economic participation with 5%.
It is necessary to understand the needs and consumption habits of Gen Z, in order that your business can participate in this generational change. This transition may involve expenses that you have not foreseen, relying on small business loans like the ones you will find in caminofinancial.com, to sell to the new economically active generation. Don't stay in the past, get to know their characteristics and integrate them to your customer base.
Characteristics of Gen Z
- Digital Natives: The main characteristic of this generation is that they were born with computers, cell phones or mobile devices in their hands. They master their operation and are used to using gadgets to socialize, interact, get information and shop.
In case social media is not your specialty, you can apply for small business loans that will allow you to invest in hiring a marketing company to make your business relevant in the digital world.
- Conservative Spending: Unlike Millennials, Z's are looking for a stable job with financial and emotional security. They spend conservatively and practically; they do not squander their money. This characteristic implies that they are more demanding customers, in case your product or service needs improvements, you can access small business loans and make the investment that will make your business grow.
- Informed and analyzed purchases: Having all the information available on the internet, all their purchases are made with data and analysis. They look for many options, different prices, additional benefits and that the cost-benefit ratio is high.
- They express their opinion: They are not afraid to express their opinion on social networks, they look for better brands that meet their needs and allow digital feedback. They consume products that match their values and philosophy, regardless of whether they have to pay a little more. They enjoy a greater choice of socially responsible companies.
- They continue to shop in physical stores: Despite getting all their information digitally, they still enjoy the physical shopping experience. Regardless of the sales channel, they look for companies that can be trusted and, above all, with good customer service.
The hybrid model (physical and online) is an excellent alternative to meet your needs, this change may require a significant investment, enter caminofinancial.com and learn about the best small business loans to get the necessary capital.
Gen Z in the United States is diverse, 25% Hispanic, 14% African American and 4% Asian. They were born in the era of the legalization of gay marriage, diverse families, therefore, they are more open to all kinds of ideas and thoughts. They look for the brands with similar values.
This generation seeks vindication as human beings with feelings, opinions and capabilities. They need companies that understand and value them, not just as a number or a consumer, but as a true ally to generate better brands, beyond the financial approach.
Entrepreneurship with a vision towards generation Z will be the first step for your business to survive in the future. If you need capital for this assignment, you can resort to small business loans and get it in a short term. It is important to have healthy finances in the present, but it is also important to begin to visualize the new needs and meet them before other companies do. Could you tell us what your brand has to offer to Gen Z?