2022 has been another year of unpredictability and instability for small businesses that have been at the forefront of continued challenges including labour shortages and disruptions to supply chains.
But what is the outlook for 2023?
Here are the top five trends that will have a major impact on small businesses and the way they operate in 2023.
Rising energy prices and inflation
Energy prices are forecasted to soar by up to 50 per cent next year, dealing small businesses another blow. Rising inflation is a national issue and will be one of the biggest concerns affecting small businesses in 2023.
To prepare for this, small businesses can consider adopting technology such as a cloud-based storage system where staff can access remotely would alleviate energy consumption.
Safeguarding security and customer data
Cyberattacks are serious business for small companies. They often result in identity theft or the loss of company data, both incredibly damaging to a small business. Worst-case scenarios can include devastating disclosures of customers’ personal information.
Now more than ever, small businesses need to have a cybersecurity strategy and action plan in place. Regardless off the size of the business, hackers want data. Whether that’s your customer data, health records or credit card information.
Adopting successful processes in 2023 will help keep your business out of the danger zone. Be sure to evaluate the technology your business uses, keep software updated, and create a risk management plan that includes training your employees to help combat a cyberattack.
Hyper convenient customer experiences
In 2023, customers will want an enhanced customer experience with convenience and technology playing a pivotal role.
A recent 2021-22 CPA Australian small business survey found fast-growing small businesses are much more likely to be selling online, receiving payments through new payment technologies, and using social media in a variety of ways.
To support small businesses with convenience, small-business owners can consider flexible payment options and digital accessibility.
Regardless of how big or small your business is, a bar has been set for customer service and customers will expect that level regardless. Small businesses that adapt to this will be able to compete with the larger ones, and those that don’t may fall to the wayside.
Conscious customers
There is a growing trend that customers are increasingly choosing businesses that support environmental and sustainable values. A recent survey by Finder found that one in two Australians actively look for greener products or services.
Having a product or service that makes a valuable contribution to the planet will continue to drive purchase as we head into 2023.
Small businesses can respond to this trend by focusing on how they can operate more sustainably day to day from packaging to products. In addition, how a small business can contribute towards sustainability such as a charitable partnership, which has huge rewards for employees and the community will also look favourable.
Workplace wellness
Over the past two years, changes in the workplace and how we work day-to-day have brought workplace wellness to the forefront. The spotlight on employer and employee mental health, burnout and stress management will continue to be a key priority in 2023.
It’s therefore important for business owners to look forward and adopt practices before the start of 2023. Things such as adopting technology solutions to save on admin time and in turn, enable more family time, or practicing stress management techniques. Not putting workplace wellness first could have a bigger impact on a small business in the future.
As we near 2023, small businesses have had plenty of challenges but there are also plenty of opportunities. Embracing these trends can build the foundation for resilience and long-term growth.
