Riva Lesonski
The future looks bright for small businesses, but challenges also lie ahead in 2023.
Many small business owners expected 2022 to be the year of recovery after two years of struggling to survive the pandemic. But inflation, recession fears, still unreliable supply chains, and a tight job market as a result of a country at near full employment thwarted many of our goals.
As we enter 2023, the outlook looks somewhat brighter for small business owners. I spoke with several small business experts to get some advice, insights and predictions for small businesses in the new year.
Small business outlook in 2023
The impact of the recession on SMBs
“No one knows if there will be a recession, but it’s safe to say that small businesses are grappling with some economic obstacles right now. Fortunately, small businesses are resilient. Even with a recession, the 2022 Small Business Now report shows that 90% are confident they will still be in business a year from now. It is also common to see many small businesses starting up during recessions.
“However, some sectors may be hit harder than others. Consumers we surveyed are more likely to gravitate toward ‘convenience,’ ‘lifestyle,’ and ‘entertainment’ businesses during the recession. said it would reduce its spending first. I highly recommend them Business he leaders need to start recession planning now to stay safe. ”
—Dave Charest, Director of Small Business Success, constant contact
What will the small business landscape look like in 2023?
“2023 will be the year small business owners bet on themselves and focus on the elements of business ownership that are under their control. In between, the past few years have been very difficult to run a business.
“Nevertheless, it is clear through our research and our conversations with clients that most business owners remain resolutely optimistic about 2023. We expect there to be more, but entrepreneurs are focusing their efforts on marketing and promoting their businesses, investing in new technologies, and increasing headcount.”
—Sharon Miller, Small Business President/Head of Specialty Banking and Lending, bank of america
“Of course, inflation is the greatest [concern] I’ve heard it from small business owners. They are concerned that higher prices will alienate customers. However, consumers are happy to support businesses within their communities as long as the value is clear and businesses are building relationships with them.
“A bigger challenge that will persist through 2023 is staffing. Concerned about retaining employees, I expect small businesses to get creative about what the incentives they offer their employees are to keep them engaged and invested in their business. It’s meant to carry on.”
—Dave Charest, Director of Small Business Success, constant contact
startup outlook
“Recession or not, startups will continue to thrive. More and more individuals will be in control of their own destinies, rather than being at the mercy of big corporations.”
—Nelly Akalp CEO coop net
Overall outlook for small businesses
“While a recession is uncertain, there are warning signs. Small businesses should start preparing for possible new economic challenges. There are several ways to do this.1 The first is to improve the way you communicate with your customers.While it has never been more important to create emails or text lists, this is still a cost-effective way to provide useful information to your customers. High way.
“They should also rely on their strengths, such as the connections they have with their communities and the great experiences they can offer their customers. Bigger brands may have more budgets and more exposure, but We can’t offer the same inventory, customer service or experience… Contrary to what the headlines say, small businesses are tough and will weather whatever they have to face in 2023.”
— Dave Charest, Director of Small Business Success, constant contact
“Small business owners are proving resilient and agile enough to meet whatever challenges the economy faces. A recent Hello Alice survey found that 73% of It turns out that in 2023, you expect your business to grow. [They] Surveyed owners identified price increases and product offering adjustments as two effective strategies to help combat inflation in 2022.
“However, these tactics contribute to owner’s two biggest concerns heading into 2023: loss of customers due to rising prices and inability to win customers. Business owners should learn best practices and consider software solutions to optimize their marketing efforts next year.”
—Elizabeth Gore, Co-Founder/CEO, hello alice
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Small business finances in 2023
“In 2023, SMEs will focus more than ever on cost control to manage an increasingly challenging economic environment. We anticipate that many will be looking at service consolidation, which will allow small businesses to provide end-to-end There will be a growing demand for cohesive financial platforms that help manage money on the end.
“When financial services such as payments, business banking and lending are intelligently integrated and tailored to meet the financial needs of small business owners, they can unlock unmatched cost and efficiency benefits. Faster access to money means more opportunities to invest in growth.-Time insights help you make more informed strategic planning, and seamless integration between money management tools cuts complexity. Arming small businesses with technology that facilitates these functions will be especially important in the new year as small businesses navigate an uncertain macroeconomic environment.”
—Rob Daniel, Director of Product Management, Intuit QuickBooks
Buying and Selling Small Businesses in 2023
“Based on what we have seen how the small business market reacts to rising interest rates, we expect the theme for 2023 to be seller financing. It has stuck to its mandate to fight inflation, suggesting that multiple rate hikes may be on the horizon this year.
“Time will tell if that’s true. But these terms lead to more buyers demanding at least a percentage of the seller’s funds to close the deal, and the seller responding. In terms of deals, with lots of buyers in the market and baby boomers on the brink of retirement, we expect deals to accelerate at the same pace we’ve seen in the last two years. We expect funding to be a major hurdle for entrepreneurs to overcome.”
—Bob House, President, CoStar Group (BizBuySell)
Trends and challenges affecting women entrepreneurs
“Women business owners have increased rapidly over the past decade and we expect that trend to continue in 2023. Equal access to capital will always be essential to accelerating growth. There is a lot to be done, but access to education is just as important.. In the 2022 Women and Minority Business Owners Spotlight, 75% of female business owners say they wish they knew more about small business finance. I believe that the number of educational resources available to women entrepreneurs will continue to grow in 2023 and beyond.”
—Sharon Miller, Small Business President/Head of Specialty Banking and Lending, bank of america
“2023 is pivotal for women and access to capital. Nearly 70% of small business owners say they plan to apply for funds to combat inflation this year. We know women face barriers that limit their access to loans, credit, and other vital business funds.We are committed to helping all women meet the unexpected challenges and grow their businesses. We should focus on how to ensure access to financial tools for
—Elizabeth Gore, Co-Founder/CEO, hello alice
Small business cybersecurity trends
“Attacks against small businesses will increase in 2023. SMBs already account for more than 41% of data breaches, but as large enterprises spend more on cybersecurity and adopt more robust frameworks, Attackers are increasingly turning their attention to small businesses Cybersecurity is also a key differentiator in SMB sales and partnerships Organizations are looking for vendors with mature security and compliance programs I look forward to more cooperation.”
Why companies should implement BYOD (Bring Your Own Device) policies
“Even if employees are prohibited from using their own devices, some employees choose to use them anyway. A key benefit of establishing a BYOD policy is that devices that may be connected to your company are well protected.
“The number one place where BYOD policies fail is at the ineffective onboarding stage. Sending employees a list of instructions can be difficult to follow, but a live onboarding plan for all devices improves At a minimum, BOYD policies should include mobile device management: remote monitoring, endpoint and network security, and personal data breach monitoring.”
— Amir Tarrigat, CEO, agency
About the author
Rieva Lesonsky is CEO of GrowBiz Media, SmallBusinessCurrents.com Over 30 years of experience covering small businesses and entrepreneurship.Sign up with her to get more insight into her business trends freedom tide Newsletter.