The best-known businesses are generally the largest ones. Companies like Nike, Coca-Cola, and Facebook tend to dominate the spotlight, just as they dominate their respective industries.
However, the real big news is small businesses. It’s estimated 99% of businesses in the US are classified as small businesses.
There are currently over 33 million small businesses.
What’s really interesting is that 80% of small businesses have no employees, yet 50% of all US employees work for a small business!
Small businesses always face challenges to stay afloat. The last few years, since the emergence of COVID-19, have been particularly challenging.
It’s not just the downturn in the economy that has caused issues, it’s the constantly changing regulations.
Since then, inflation and interest rates have been rising and the economy is still struggling to flourish.
It’s increasingly complicated for small businesses to stay afloat, and that’s why every small business owner should be aware of the new small business trends for 2023.
Knowing what they are will make it easier to be prepared for issues and take advantage of situations.
- 1 Here Are The New Small Business Trends For 2023 You Need To Know About
- 1.1 1. Tailored Employee Benefits
- 1.2 2. Borrowing Costs Continue To Increase
- 1.3 3. Business Costs Rise
- 1.4 4. Social Media Interactions Will Grow
- 1.5 5. Customer Leverage
- 1.6 6. Renewed Adaptability
- 1.7 7. Environmental Push
- 1.8 8. Increased Use Of Artificial Intelligence
- 1.9 9. Increase In Use Of Virtual Reality
- 1.10 10. Cryptocurrency
- 1.11 11. Introducing Subscriptions
- 1.12 12. Personal Service
- 2 Summing Up
Here Are The New Small Business Trends For 2023 You Need To Know About
Be ready for the future by creating a plan to deal with these trends today.
1. Tailored Employee Benefits
Attracting the right staff in the current climate is likely to continue being difficult.
There is a shortage of workers. To attract the best talent more employers will start offering tailored packages.
Employees want more than just a good financial reward.
Flexible working schedules, programs to grow and gain qualifications, and even opportunities in the business are all excellent ways to attract and keep employees.
Of course, additional paid vacation is always a good incentive.
The best employers don’t need to spend a fortune improving the employment opportunities.
2. Borrowing Costs Continue To Increase
With the current economic climate and no end to the Russian invasion of Ukraine in sight, it’s not surprising that interest rates are likely to stay high and perhaps even increase further.
As costs increase this will make it harder for businesses to survive, forcing many small business owners to find creative ways to boost cash flow.
Avoiding a traditional business loan is a good idea. Instead, the trend will be to get 0% credit cards, especially those that offer rewards that can benefit the business.
A sub-trend of the increase in borrowing costs will be an increased use of alternate capital.
Venture capitalists and even peer-to-peer lending will be an increasingly popular option for many business owners.
3. Business Costs Rise
This is an existing trend that doesn’t show any sign of disappearing. Throughout 2023 small businesses are likely to feel the pinch as suppliers increase costs.
This will be due to inflation and the state of the economy.
In addition, a continuing list of natural disasters and cybercrimes will force the cost of insurance up even further.
Insurance is essential but small businesses are going to find it increasingly difficult to afford the premiums.
4. Social Media Interactions Will Grow
Maintaining customer relationships has always been important. That’s even more true in the modern digital world because good relations build loyalty.
You need that in any competitive industry.
Although face-to-face relations with customers remain important, an increasing number of transactions are occurring online.
In short, small businesses will need a clear social media strategy. This should allow you to connect with online customers and potential customers.
Your social interactions need to be fun and informative.
Most importantly, they need to be honest and relevant. People are more understanding and supportive when you’re honest with them.
Regular updates also work, ensuring the customer knows what your business is doing and keeping them involved in the process.
5. Customer Leverage
Thanks to the dramatic increase in social media use, small businesses that wish to flourish will need to look at their biggest customers.
In the past, word of mouth was an effective way to increase sales. Of course, it was somewhat limited as people only knew so many people.
Today, social media means that one person can reach thousands, if not millions of other people with one post.
The right post can transform the fortunes of a business, the wrong one can destroy it.
Small businesses will need to seek their best customers and engage with them. The aim is to get the right message out to their followers.
It usually means offering the customer something although you don’t want their followers to know that they are benefitting from the relationship.
It’s a good idea to focus on this trend now, it will be a common approach for all companies. But, you need to get it right.
6. Renewed Adaptability
The small businesses that survive in difficult economic times are those that can adapt quickly and take advantage of any situation.
This starts with looking at current processes and identifying where efficiencies can be made.
But, it also means creating a management team that is vigilant and passionate about your industry.
This will help you to see and predict changes before they happen, allowing you to react proactively or even adjust your tactics before things change.
7. Environmental Push
Individuals, governments, and businesses are becoming increasingly aware of the damage being done to the environment.
It has led to an increase in recycling, green resourcing, and a streamlining of procedures.
You can expect this trend to continue throughout 2023 and even intensify.
One way in which a business can help boost its environmental credentials is to look at switching to electric vehicles.
Of course, there are many others, such as shipping procedures and materials or how to increase green energy usage.
8. Increased Use Of Artificial Intelligence
Artificial intelligence is becoming an increasingly popular phenomenon.
The arrival of ChatGPT and AI art generators has inspired numerous people and caused large businesses to invest small fortunes in the tech.
At the moment it is unclear where this will lead.
But, the trend toward AI is likely to continue and small businesses will need to monitor AI tools to see if they are affecting their industry or can be used to benefit the business.
AI is still in its infancy but has a lot of potential, small business owners need to be aware of it and what it can offer.
Where AI will really flourish is in big data.
Ai devices can collect, monitor, assess, and even make business decisions based on huge amounts of data.
That’s something a human can’t easily do and will be beneficial to your business.
9. Increase In Use Of Virtual Reality
At first, virtual reality was simply something that gamers used and loved. However, the tech has now spilt over to other industries.
It’s an effective way of training someone or testing them after a training course.
Their reactions can be monitored and used to assess an employee’s capabilities.
VR can also be used to illustrate the benefits of your product or service. Embracing this now will help you get out in front of the crowd and make the most of the trend.
The fact that it’s fun will help you stand out from your competition for the right reasons.
Cryptocurrency has had a rough ride in the last few years but an increase in this alternative payment option is growing.
Just as contactless cards made the physical purchasing process faster and smoother, cryptocurrency can offer a similar advantage.
It’s faster than a credit card, cheaper for businesses, and the funds are instantly yours.
While it may not change the world in 2023, small businesses need to start thinking about how they can accept this payment type.
11. Introducing Subscriptions
Building relationships with customers increases loyalty. So does getting the customer to subscribe.
It’s comparatively easy to start a subscription service, simply arrange an electronic mailing offering them to subscribe to your newsletter.
You can even launch a social media campaign to get the same result.
Subscriptions allow you to target customers and potentially increase sales even when the competition is struggling.
It can also be a way to earn a little extra every month; by creating a small subscription charge.
12. Personal Service
Perhaps the biggest trend for small businesses this year will be to increase their personal customer service.
Understandably, customers are tired of automated message services and not being able to contact a person with their query.
2023 is going to see more small businesses investing in personal customer service.
It will help your business to stand out from the competition and you’ll take better care of your customers.
Every small business needs to start thinking about the new small business trends 2023 listed above.
Making them part of your business plan for the year will help your business grow and flourish.
Of course, the above list isn’t conclusive, every industry is different.
What you should be doing, as a small business owner, is monitoring your own markets and devising a plan to make the most of any opportunity.
Being aware of the current trends will help.