These are my predictions for 2012 - some positive and some negative, but of course that all depends on what side of the fence you are on.

Overall, The Economy will continue to grow slowly at about the same pace as it did in 2011 - 2%. Most prices will rise as well by the same 2%.

Consumer Confidence will continue to be weak and many businesses will continue in a period of stagnation with no top line (revenue) growth.

Credit will become easier to obtain. Business owners may finally get the capital they need as underwriting standards will begin to be relaxed this year and will continue to loosen up throughout 2012. However Interest Rates will rise about 1 to 1.5% from present levels.

Both large and mid-sized business will increase spending in the area of Cloud Based Solutions

More Cheap Online Ads will be available. Marketing will continue to move to low-cost online tactics such as paid search.

New Tools will become available that will help business owners better Analyze Customer Behavior and comments on various social-media platforms.

Mobile Purchasing will continue to grow. If you are a retailer, you need to optimize your website for mobile phones as soon as possible. M-commerce more than doubled in 2011 to $6.7 billion, and it is expected to quadruple again by 2015.

Retail-Format Experimentation will pick up. More stores will experiment with pop-up formats and smaller-format superstores.   Expect to see more experimentation by retailers and restaurateurs in their store layouts. As the economy slumbers, retailers will look for ways to make cheaper, smaller footprints work for them.

More Collaboration will take place in 2012. The small businesses that stay afloat will be the ones that reach out to complementary businesses in their town or their industry and find ways to help each other.

Services will continue to head offshore.   This year, U.S.-based contractors exported their services to more than 140 countries and I see more of the same for 2012.

Daily Deals will die down. The daily-deal space is oversaturated with competing offers. Many business owners lost money doing daily deals. Expect a shakeout, both in the number of deal companies and in the types of deals offered.

Payroll Taxes will continue to increase. The temporary FICA payroll tax cut of 2% will begin to be phased out and the payroll dollar limitations will continue upward. 

The Energy Tax Credits for installing solar water heating equipment, photovoltaic or fuel cell equipment, geothermal heat pumps or wind turbines in your primary residence or a second home will also begin to be phased out, if not in 2012 then possibly in 2013. 

General Insurance Rates (non-health care) will climb 2%. Health Care Costs will continue to outpace inflation 3 to 1.

The Cost Cutting that began in 2008 will continue through 2012. Much of the "fat" in company budgets has already been cut. Payrolls have been reduced and the easy fixes have all been completed. Businesses will finally have to get on top of the one cost area which is their largest, but least visible - Procurement. This area presents a hidden opportunity to better manage costs and boost efficiency in the tough economic climate of 2012. Businesses will look inside their supplier communities to reduce prices. But realistically this also has its limits and presents an upcoming battle if you are one of those suppliers.

Performance Advisors is here to help you through the uncertaintities of 2012. Contact Performance Advisors today at 602-579-5725 or email Performance Advisors today for ideas and assistance.