A never-ending pandemic, unpredictable global markets and rising inflation were some of the major challenges faced by entrepreneurs last year. And they might have to keep facing these challenges with resilience, grit and creative solutions in 2023 as well.
Here are some of the trends in terms of challenges and opportunities in store for business owners in 2023:
1) Shortage of Capital
2022 marked the end of many things from free money to market disruption. The last 30 years saw mind-boggling amounts of investments being injected into big tech as well as small startups. However, that may very well not be the case anymore.
With higher costs of borrowing, reduced returns on investments, rising inflation as well as an unstable global economy marred by wars and scandals can only mean one thing: capital will be a scarce commodity for startups to generate.
Entrepreneurs will have to come up with creative ways to cut costs and adjust their business functions to offset the impact of all the aforementioned factors.
2) Going All Out on Communication
Communication with your customers is the key to building and preserving relationships. Engaging with people via social media will continue to be crucial for a business to win the loyalty, empathy and understanding of its customers in the face of rising rates of products and services, operational difficulties and ever growing consumer expectations.
That’s why brands such as Coca-Cola, Zomato etc run engaging campaigns on their social media platforms in a bid to retain existing customers and find new ones as well.
Social media gives businesses an equal platform, which is especially advantageous for small businesses and new startups to compete against established MNCs on a level playing field.
3) Pragmatic Approach Wins
Just like the reign of free money came to an end in 2022, so did the era of disruptors who worked against conventional wisdom and disrupted the world. Firms like Facebook and Shopify took big hits to their overinflated values while startups trying to stand straight on wobbly grounds such as FTX had their bubble burst and go bankrupt.
It looks like 2023 will mark the revival of innovation that goes in hand with hand with a balanced mix of pragmatic approach and a wealth of industry experience.
4) Building A Sustainable Business
The world is no stranger to business ethics and growing awareness about climate change and sustainability. Customers are more conscious than ever about how their decisions and purchases impact the world individually as well as collectively.
From shipping and packaging to contribution towards helping the environment flourish, businesses must revamp the way they function if they want to outgrow their competitors and last in the market.
5) Tailored Employee Benefits
Since finding and retaining talent has become so hard after the pandemic because of people choosing voluntary and early retirement as well as adapting to a slow-paced lifestyle, it is important for companies to show that they are willing to go above and beyond for their employees.
Offering employees valuable mentoring, leadership pathways, career growth opportunities and flexibility in terms of work and time off – all these things will help companies to gain a competitive advantage in attracting and retaining top talents that can relate with the company on a deeper level which extends beyond the pay and growth.
If employees feel valued and taken care of, they will work harder while also aligning themselves with the company’s mission and vision.
Written by Gagan Dhawan
