Your Gen-X Customers Will Be Financially Worse Off Than You
Thirty-somethings are suffering the most from the aftermath of the financial crisis, with long-term consequences that small-business owners should keep in mind.
Gen X (people mostly in their 30s) are in a difficult financial position. As Jordan Weissmann writes, the housing market bubble burst just as Gen X was buying real estate. The net result is that they invested their capital into an asset that may decline in price, in many cases to the point where the value of the house will be less than the mortgage debt. Crawling out from this type of financial predicament, especially during a time of weak economic recovery, can take a decade. At the point when they are about to start accumulating wealth, they will find major life expenses fighting for a share of their wallet. These pressures and circumstances make it very likely that Gen X will be worse off financially than their parents.
Business owners need to respond to this trend. Developing products and services that reflect the more modest financial condition of Gen X will allow you to tap into that market. Developing alternatives methods to evaluate customer credit-worthiness will also be essential as traditional metrics may not reflect the new reality for Gen X.
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