A close examination of today's market place indicates very clearly that large and small trends affect small independent businesses such as ours very differently than it does our large competitors.

Here are six trends affecting the small independent today as I see it.

#1- Personalization --
Knowledge of customers' birthdays, favorite colors, time of day they like to shop, and other information is not just pleasantry any more. It can be an essential driver of sales. So while big companies employ slogans like reach out and touch someone, it is more likely that it is the small independent business who can actually shake their hand.

#2- Value Equation -- (Customers becoming more demanding and expect more value). And so, the traditional consumer power structure has permanently shifted from sellers to buyers. Doing business as usual can mean doing no business at all. Buyers now hold the trump card.

#3 - Changing Consumer Attitudes and Behavior --
Consumers want a transparent buying process devoid of hassles. A buying experience that fulfills these dual emotional needs will be highly valued. (Our industry is not very good at transparency.)

#4 - Changing Demographics - Three demographic trends are bringing profound change and opening up new opportunities to serve today's demographics: (1) is the aging American population, (2) the growing Hispanic population, and (3) Generation Y -- born between 1981 and 1995 -- now the largest American consumer group in history.

#5 - Health Care Costs - The most important domestic problem in the U.S. appears to be the healthcare insurance crisis. While this affects everyone, it hits the small business especially hard due to the runaway costs of providing benefits to employees. It creates a serious competitive disadvantage.

#6 - Increased Competition -- Our competition is growing in strength and numbers. Because of the growth of the Internet and the increasing clout of national franchises, small independents must not compete on price. To do so is a death wish. It is not sustainable.

The real strengths of a successful small independent business revolve around specialization, differentiation and finding profitable, defendable and sustainable niches.