There’s no denying that there’s a certain challenge to running a business. However, this is often the driving factor behind the business’s creation, as entrepreneurs within every industry like to rise up to the opportunity and make great things happen.
However, in order to succeed in the face of challenge, it’s important to understand what you are up against. Unfortunately, everything from consumer habits to market profitability can change within seconds and sometimes without warning, which makes this task all the more difficult.
Yet, by paying close attention to trends (and data), it is sometimes possible to predict challenges that may come your way over the course of the year.
With that in mind, here are four of the biggest challenges businesses may face in 2023 – and what you can do about them.
Recruitment.
Recruitment and retention prove to be a challenge for business owners year in, year out. For example, the great resignation in 2021 saw resignation rates grow by “40% more than pre-pandemic rates” as employees left en masse. This was followed by ‘quiet quitting’ in 2022, which brought forth a range of complications, such as lower productivity and efficiency.
Currently, experts predict that the biggest recruitment/retention challenge employers will face in 2023 is capturing the attention of top talent. For example, a recent study found that “the best candidates are off the market within 10 days”, which can make hiring new employees difficult unless you are willing to accept less-than-stellar candidates.
Fortunately, there are many ways in which you can ensure your business is as attractive as possible to new hires. For example, you could offer better employee benefits or develop a hybrid/remote work policy.
Keeping up to date with technology.
Keeping up to date with technology is crucial when it comes to succeeding in business – after all, this tech can save you time, energy and money when implemented correctly. However, technological advances can also make your life more difficult, especially if you have to change the way you work to respond to them.
For example, new developments in AI technology for content and copywriting leave many questioning, is seo dead? As SEO best practices have played a key role in marketing campaigns and gaining online traction for years, this development is troubling for many.
However, staying informed is the easiest way to ensure you succeed where tech is concerned. Figure out which technology is worth your investment, and which is likely to be a passing trend.
Finances.
While it’s always important to stay on top of your finances, the rising cost of living is bound to bring around challenges for businesses. For example, simply running a business will become more expensive. Research from Vodafone found that finances were the leading concerns for small business owners at the start of the year. For example:
- 57% of business owners were worried about the rising cost of fuel and power
- 34% of business owners were worried about covering staff wages
- 32% are worried about the rising cost of broadband and phone contracts
- 32% are worried about rent/mortgage costs increasing
There are many ways in which you can ensure you remain on top of your finances in 2023. For example, hiring an accountant means that you’re able to notice any mistakes you are making with your money sooner rather than later. Alternatively, you can look into cost-cutting solutions. For example, working remotely saves money on overhead, bills, and more – as well as doing wonders for employee satisfaction rates. You could also improve your financial situation by reaching out to potential investors and encouraging them to make a donation, or investment into your business. This can be particularly useful if you’re planning on launching new products or services and need a bit of extra cash to support this.
Changing customer demands.
Understanding exactly what your customers want will enable you to grow from strength to strength. However, as their demands change so frequently, it can be hard to pinpoint what you need to do to work toward this goal and proactively manage your customers.
Nevertheless, there are some trends already emerging within 2023 that you would do well to capitalzie upon. For example, “72% of consumers consider sustainability in purchasing decisions,” meaning that now would be the perfect time to give your company a green makeover. In some cases, this could also help you keep costs down – especially if you switch to a renewable and more efficient energy source.
The Global Consumer Trends for 2023 report also found that customers are on the lookout for brands with a ‘human touch’. While they are well aware of the benefits of the digitization, they don’t want to speak to an automated chat bot when approaching a brand – they want to speak to a real person. This is because it ensures they feel valued and that they are actually being listened to too. Some studies have found that human interaction – even over the phone or through email – also makes a customer more likely to buy a product.
As the cost of living crisis is hitting consumers just as hard as it is hitting the brand, they’re also looking for good value for money. Try to think about changes that can be made to your prices, or ways you can encourage customers to spend more money. For example, “Loyalty programs are another way to relieve cost pressures on consumers. Sixty-three percent of consumers surveyed by Euromonitor said that they participate in loyalty programs to receive discounts and offers. “
Final Thoughts.
By taking stock of the above advice, you’re putting your brand on the path to success in 2023. This is because you will be aware of upcoming challenges before you stumble upon them, meaning you’ll already have a plan of action in place that details exactly how you must respond.
No matter how you choose to respond to these challenges, do so with confidence and determination. Sometimes, a positive outlook is all you can rely on – and it can be a real lifesaver on days where everything seems to be going wrong. So, if in doubt, stay positive.
