[ad_1]
this article Reprinted with permission from Nerd Wallet.
Since the onset of the COVID-19 pandemic, small business owners have faced ever-changing regulations, cash flow shortages, and general economic uncertainty. And 2022 brought its own set of challenges: inflation, rising interest rates, and a shortage of workers.
But entrepreneurs are resilient and optimistic about the year ahead. In fact, according to Bank of America’s annual report for late 2022, 66% of his small business owners expect their earnings to increase in the next 12 months, and 52% plan to expand their business. doing.
So what will 2023 bring for business owners?
NerdWallet’s Small Business Writers offer predictions and advice for the start of the new year.
1. Banks are committed to customer experience
Kelsey Sheehy: As online banks and neobanks compete for customers in an increasingly crowded space, they should step up their game by offering higher interest rates on checking and savings accounts and more business-friendly features. Business owners need to hunt beyond basic savings accounts to find those that add value to their company.
remove
Consider if your bank can do more for your business. You can look for business bank accounts with low fees or integrated tools (invoicing, accounting software, etc.). It may also be a good time to look for a high-yield checking or savings account that will help your business earn interest on existing funds. Don’t be afraid to explore new options and discuss your needs with your provider.
plus: Making small businesses more sustainable pays off. Here are three ways to get started.
2. Inflation requires adaptability
Hillary Crawford: Inflation can force business owners to think more about how to improve efficiency and save money in the long run. This could mean buying electric vehicles, rethinking delivery processes, and improving the energy efficiency of buildings.
remove
Stay flexible and think creatively about your company’s strategy and operations, as inflation will likely continue to affect your business in the near future.
3. Customized Benefits Attract New Hires
Lisa Anthony: Labor shortages are likely to continue into 2023. Small business owners can attract workers seeking greater flexibility from employers by offering benefits such as hybrid he workplaces and other options when hiring new talent. You may gain a competitive advantage.
remove
Explore new and unique perks your business can offer, including mentorship programs, growth opportunities, flexible schedules, and time off to attract and retain top talent, even on a tight budget.
4. Borrowing costs remain high
Kelsey Sheehy: Business owners need a way to offset high interest rates and tight lending markets that are likely to continue through 2023. Demand for balance transfer or 0% annualized business credit cards is expected to grow in the next year.
remove
Borrowing costs are likely to remain high for the foreseeable future. If you need access to capital but can’t afford a traditional business loan, consider alternative financing options such as business grants or rewarded credit cards that help your business.
Also read: ‘2022 was the scariest year of my adult and professional life’: One mortgage broker reveals how housing slump upended financial stability .
5. Communication is key to customer relationships
Hillary Crawford: Engaging with customers on social media remains important for brick-and-mortar stores, restaurants, and online businesses, especially if they need to raise prices or change hours. Inflation also affects consumers. Talking openly about the issues facing your business will help your consumers empathize with you. Perhaps they will be more understanding as well.
remove
Communicate clearly and proactively with your customers. This helps maintain relationships even in uncertain times. Decide how best to communicate, whether social media or other channels, and engage your customers where they are.
Do not miss it: People working in small businesses now have better access to retirement benefits.
6. The cost of doing business continues to rise
Rosalie Murphy: The latest data from The Council of Insurance Agents & Brokers shows that small business insurance premium growth has slowed slightly in 2022, but costs are still rising rapidly. Price increases are most dramatic in cybersecurity and property insurance. As natural disasters and digital security breaches become more frequent and severe, some premiums may continue to rise even as inflation slows.
Lisa Anthony: Small business software costs are likely to rise this year. Some providers may raise prices, others may adjust the features offered in the basic plan. Upgrading to a more expensive plan increases your chances of getting the tools you need. more important than ever.
If you don’t mind: Points to note when starting a business after age 50
remove
The start of the new year is a good time to assess operating costs. Identify areas where you may be able to reduce costs or where there are alternative products that better suit your needs.
For example, the best way to save money on business insurance is to compare quotes from multiple providers, Murphy says. Get a quote at or set aside time to work with your insurance agent to see if you can keep your premiums down, she says.
Learn more about NerdWallet
Randa Kriss writes for NerdWallet. Email: rkriss@nerdwallet.com.
[ad_2]
Source link
