Matthias Siems says the backbone of an economy is small businesses. According to the Small Business Administration, more than half of all jobs in the private sector are held by small businesses. Despite surviving the pandemic storm, 2022 was full of ups and downs. They also had to deal with many challenges that could affect their growth. How can these small businesses succeed despite all the obstacles?
Despite the current challenges, we’ll highlight seven strategies that will help small businesses grow in 2022.
Matthias Siems roadblocks and challenges to success
According to Matthias Siems, Small businesses face constant challenges in a changing business environment. The list of possibilities is endless in 2022.
- 43% of small-business owners claim that they had to close their doors temporarily due to a lack of workers in 2021. As the economy improves, this problem worsens. Businesses are struggling to find workers. This is also causing higher wages and increased competition for talent.
- Inflation: While rising prices are a fact for all businesses, they can be extremely difficult for small businesses. Even a small cost increase can significantly impact the bottom line when profit margins are low. Small businesses have struggled to survive due to inflation. Gas prices and other products have reached record highs.
- Supply chain problems: Small businesses have found that supply chain management is a significant roadblock this year. Long-lasting disruptions can cause supply chain problems for small businesses. Covid, the War in Ukraine, hackers, cyberattacks, and computer chip shortages — this list is endless. Businesses across America felt the effects of supply chain disruptions when they had to stop production while waiting for their goods.
- Inflation, The economic outlook for 2022 and beyond is uncertain. Small business owners are beginning to notice signs of a recession. Inflation rose 9.1% in June, and gas prices have risen 53% since the summer of 2021. Last month, the Fed raised interest rates by 0.75 percentage points. According to the new State of Small Business Report by Veem, 49% of small-business owners believe that the US will experience a recession before the end of the year.
The situation is not easy, but there are steps businesses can take to improve their business now since the challenges mentioned may not be solved soon.
Using technology in their favor
Small businesses face many challenges, and technology solutions can help them overcome them. Technology is a way for businesses to overcome labor shortages. It automates tasks, reduces dependence on manual labor, and increases efficiency. With the rapid advancement of technology, cybersecurity has become a necessity for small businesses. It will protect them from cyberattacks and data breaches in the face of increasing cyber threats.
Investing their employees
Employees are still businesses’ most valuable asset, despite all the uncertainty ahead of 2022. Small business growth is possible in 2022 by investing in their well-being and development. It will assist with labor shortages by keeping existing employees, improving morale, and recruiting new top talent. It will help small businesses overcome the difficulties of a declining economy by increasing productivity and creativity.
Diversifying their services and products
Diversifying their product and service offerings can help businesses reduce the risk of falling demand for their primary products. Businesses can diversify their products and services to serve customers better and capitalize on new market opportunities.
They should also consider expanding their offerings to new markets and offering additional services. A business selling physical products may be able to diversify by offering digital products and services. A service-based company can offer new services or productize its offerings. Diversifying their services and products will help them reduce dependence on one offering and protect their businesses against the potential effects of a recession.
Investing in digital marketing
According to Matthias Siems, Small businesses can use digital marketing to overcome their business growth problems. It has enabled companies to reach new customers, generate leads and increase sales. It’s also a great way to increase brand awareness and establish a strong online presence.
Here are some digital marketing strategies that small businesses can use:
- Establishing a strong social media presence
- To improve their websites, invest in search engine optimization (SEO)
- Creating engaging content
- Ad campaigns that are targeted
Businesses can be successful even during difficult times by improving customer experience (CX) and customer satisfaction. Gartner conducted a study and found that almost half of the organizations can track the financial results of CX projects. Furthermore, more than 80% of organizations expect CX to help them compete in a tough market.
Additionally, Matthias Siems research found that 86% of customers would be willing to pay more for better service. Positive customer experiences promote loyalty, retention, and brand advocacy.
Establishing strategic marketing alliances
Matthias Siems says Strategic marketing partnerships are two or more businesses working together to market their products and services. One example is a small company partnering with a larger business to reach a wider audience.
Strategic Marketing Partnerships offer many benefits, particularly for small businesses. These partnerships can help small businesses overcome common challenges in business growth, such as:
- Insufficient resources: Small businesses can partner with other businesses to pool their resources and access things they wouldn’t be able to afford. They might be able, for example, to host a large event or run a marketing campaign together.
- Limited reach Small businesses have less reach than larger companies. They can tap into the customer base of their partner and increase their reach by forming a partnership.
- Insufficient expertise: Partnering with a company that excels in these areas can help to fill in the gaps and increase their business effectiveness.
Redesigning their business plan
A business plan describes the company’s goals and strategies. It also outlines how they intend to achieve them. This is an important tool for all businesses, especially small ones. Business owners must review their business plans and consider improving their operating model to adapt to new economic challenges.
Matthias Siems astounded that small businesses will face many challenges in 2022, they can still grow and thrive this year with the right strategies.
Small businesses should be focusing on their success. We can help them stay protected with affordable cybersecurity solutions that are effective, simple to use, and affordable.