The '4 Perspectives' Freelancers Should Have in an Era of Rapid Change

Hello, this is Iguchi.

As a sole proprietor, I spend my days forming and testing hypotheses while exploring web marketing and sales promotion methods that can be implemented even with a small budget.

In this note, I focus on marketing terms that we have all heard of but are often used in surprisingly vague ways. Based on my own research and practical experience, I have summarized them in the simplest language possible.

I hope that even those who are not comfortable with technical jargon will find this helpful and think, 'I see, that's what that means.'

Recently, have you ever felt, 'The world is changing so fast that I don't know what to prepare for...'?

Social media trends, legal amendments, and technological advancements all change in an instant if you look away for even a moment.

In such times, there are moments when you feel anxious, wondering, 'Will my business be okay like this?'

I feel the same way.

I used to think that 'reading the movements of the world' sounded like something discussed in executive meetings at large corporations and had nothing to do with me.

But after looking into it, I realized something.
Actually, just by roughly grasping these 'external changes,' it becomes much easier for individuals to see the direction of their business.

The hint for this is 'PEST Analysis'.

It might sound a bit difficult, but it's like a 'weather forecast for the future.'

In this article, I will explain PEST analysis as clearly as possible, using analogies.

By the time you finish reading this, you should have a small compass to help you foresee the 'future' of your business.

What exactly is PEST analysis?

When I looked it up, I found that PEST analysis is a framework for 'analyzing what kind of impact the external environment surrounding your company will have in the future.' The external environment refers to the major movements of the world as a whole that we cannot control.

This is...

• Politics (Politics )

• Economy (Economy )

• Society (Society )

• Technology (Technology )

Since we look at it from these four perspectives, it is called 'PEST' analysis, taking the first letter of each.

I understood it as a tool to explore what kind of changes the four elements of 'Politics,' 'Economy,' 'Society,' and 'Technology' will bring, and what kind of opportunities or threats they could become for our businesses.

What if we compare 'PEST analysis' to a weather forecast?

I think PEST analysis is actually similar to a weather forecast.

For example, suppose you want to go on a picnic this weekend.
At that time, what do you look at first?

Wouldn't you check the weather forecast?

• P (Political): This is like 'government policies and laws.' For example, administrative actions such as 'a new park was built, but the rules for taking trash home have become stricter' or 'bike lanes were improved, making access to the park better.'

• E (Economic): This is like 'business conditions and prices.' Situations such as 'gas prices have gone up, so driving there is a bit expensive' or 'it seems more people are spending money on leisure lately.'

• S (Social): This is like 'people's lifestyles and values.' Trends such as 'more people are health-conscious lately, so many are exercising in the park' or 'there are many families, and events for children seem popular.'

• T (Technological): This is like 'new technology.' Technological progress and regulations such as 'smartphone map apps have become very convenient, so I don't get lost even in a park I'm visiting for the first time' or 'more people are using drones for aerial photography, but their use in the park has been banned.'

Taking all of this into account, you make a plan: 'Okay, for this weekend's picnic, I'll go to this park, bring a lunch, and ride my bike!'

The way of thinking is the same as using PEST analysis to build a future business strategy!

How can we as sole proprietors and freelancers use PEST analysis?

So, how can sole proprietors and freelancers like us specifically utilize PEST analysis?

Let me give you a few examples.

Example 1: For a Web Writer/Content Creator

• P (Political): Legal measures against fake news are progressing, and highly reliable information may be in greater demand. -> Opportunity! If you highlight your research and fact-checking skills, your work might increase.

• E (Economic): Corporate advertising budgets are being restrained, and the in-house production of website content is progressing. -> Opportunity! Demand for ghostwriting corporate blogs and supporting owned media may increase.

• S (Social): Awareness of SDGs is rising, and demand for information regarding ethical consumption and sustainable living is increasing. -> Opportunity! You can specialize in content themed around environmental issues and social contribution.

• T (Technological): AI-based article creation tools are evolving. -> Threat! Simple article creation may be replaced by AI. However, Opportunity! you can differentiate yourself by honing unique perspectives, deep insight, and structural skills that AI cannot produce.

Example 2: For an Online Fitness Instructor

• P (Political): Subsidy programs for health promotion are starting. -> Opportunity! You can offer programs that utilize these subsidies.

• E (Economic): As the economy worsens, more people are cutting back on gym memberships. → Opportunity! Demand for online fitness that can be done easily at home is increasing.

• S (Social): Following the COVID-19 pandemic, exercising at home has become a habit. Interest in maintaining health among the elderly is also rising. → Opportunity! You can develop programs specialized for specific groups (the elderly, parents raising children, etc.).

• T (Technological): VR technology is evolving, making immersive online lessons possible. → Opportunity! You can offer new forms of lessons that incorporate the latest technology.

What do you think?
When you try applying this to your own business, don't various ideas start to come to mind?

Summary: Get a Compass for the Future with PEST Analysis!

At first, I felt that PEST analysis seemed a bit difficult, but after learning about it like this, I strongly felt that it is by no means irrelevant, but an important perspective for us sole proprietors and freelancers as well. In a world that changes dizzyingly, it is very important to not just be chased by the work in front of you, but to take a step back and think, 'What is likely to happen next?'

PEST analysis should serve as a 'compass' for that purpose.

From now on, when I start something new or am unsure about the direction of my current business, I intend to use PEST analysis to read the direction of the wind for the future.

I hope you will also incorporate PEST analysis into your own business. I am sure you will find new discoveries.

In the next article, I will introduce 'SWOT analysis,' which is said to allow for even deeper analysis when used in conjunction with PEST analysis.

Let's keep learning together!

Thank you for reading until the end.

I would be happy if this article led to a small realization like 'I see, that's what it meant!' or provided a hint for your ideas.

Following me would be a great encouragement.
I will follow you back as well ^^