The new year is fast approaching, and it will mark the end of a tumultuous past few months. After financial volatility like no other, many small business owners may be hoping for some calmer waters next year in 2023. Unfortunately, with recession potential looming and no end in sight for high prices, this might not come true.
Let’s break down what’s to come in 2023.
1. Technology will become more important in the future
It’s important to think about how you can use new technology in a way that doesn’t overwhelm your business. Get your expectations in check before starting the process of incorporating new technological solutions into your company.
If you sell products online, the right e-commerce software can save you time and provide better customer experiences. Also, email marketing software can help you build personal relationships with clients who are buying your product. If a majority of your business is in person, however, it might not be worth it to invest too much time or effort in learning new software that won’t help improve your bottom line significantly.
In recent years, we’ve seen the rise of virtual worlds, artificial intelligence, augmented reality, and blockchain. These trends affect everyone, not just service providers. But since they may vary by companies’ needs, you’ll need to take time to understand each trend before pinpointing which ones are right for you.
“Small businesses will adopt cloud technology more heavily in the next few years. Cloud computing enables businesses to access resources, such as software applications and data, over the internet rather than on individual machines. This makes it easier for small businesses to share resources and allows them to manage their operations from one location”. Jeroen van Gils, CEO of LiFi, said in an interview.
2. Employee relationships are changing
Terms such as “quiet quitting” and “the Great Resignation” have gained a lot of traction this year. They reflect an increasing complexity in attitudes towards work, with job market being extremely strong while the economy could change if we head into a recession. Many people are reporting fatigue and burnout, and some employees are thinking of their attitude towards work again.
Keeping all employees engaged and productive is vital, which is why every decision must be made with them in mind. If you’re wondering if a hybrid setup might work better for you or if in-person work is the way to go, review recent studies on productivity from Microsoft. You’ll see that 87% of people would rather work from home or have flexible schedules, whether their boss feels the opposite or not.
3. Sustainability is more than just a buzzword
The number of customers changing their buying habits, to try and be more environmentally-friendly or sustainable has been on the rise. The change is partly driven by economics, but also by environmental concerns. People have been talking about sustainability for years but it may now make a real difference.
“If you can make sustainable packaging choices, that’s a good place to start. It speaks to your clientele and shows that you’re serious about their long-term interests. It’s important for companies to be transparent about their ethical work practices so people will grow more confident in business relationships.” According to Benjamin Stenson, CEO of Norsemen, said in an interview.
4. Inflation and economic instability
As the Federal Reserve pushes inflation to new highs, small businesses are finding it difficult to stay financially afloat. The average cost of goods and services is rising rapidly, so aren’t able to raise prices without risking lost customers. But they face even bigger risks if they don’t pass their increased costs on to their clients–or worse, go bankrupt. One way companies can maintain profitability is by being transparent with their customers about any increases in costs.
It’s difficult to predict when the economy cycles will shift and how that will impact your business. It isn’t a certainty, but it’s wise to be prepared. Sit down with your cash flow, and try to ensure you have money on hand if an economic downturn hits. If you haven’t already done so, look for ways to streamline your activities and increase efficiency. These are lean times, so every dollar saved could help your business survive.
With all the economic and political uncertainties, it may be a good idea to apply for a business credit card now. These cards typically come with an introductory rate that’s zero percent APR. However, if you think this is a solution, it never is – and there are usually other better ways to get the money you need.
5. Video is where it’s at
Social media is a necessity, but following it can feel like an endless list of things to manage. Instagram continues to be one of the most popular social platforms and over 60% of Gen Z use TikTok once a month. Schedule your content’s appearance on these channels according to what your customer base is most likely to engage with.
Video content is becoming more important than ever before. Video conveys a lot of information in a short time, and can help you tell stories or build your brand. If you’re not using video today, 2023 might be the year to get on board. According to Michaela Manual, Digital Marketing Support of Caffeine Brothers.
Bottom line
2023 may be the year that propels many small businesses into survival mode. It will need to be agile and adaptive if one is going to remain operational in any meaningful capacity. It’s important to maintain relationships with staff, clients, and key vendors. These relationships could prove essential whether it turns out to be a good time or a bad time financially.
