There’s no denying that 2022 has been a challenging year for many businesses. The cost of living crisis coupled with supply chain issues and the lingering impact of Covid 19 has created a turbulent economic climate for company owners to navigate. Unfortunately, it looks as though some of this year’s business challenges are set to continue into 2023. However, what’s important is being aware of the future business challenges that may lie ahead so that you can future proof your business accordingly. These are some of tha main obstacles that we’re expecting to see:
Inflation & Recession
The rising levels of inflation that we’ve seen over the past year have caused chaos for many business owners. In October of this year, inflation was at 11.1%, the highest it’s been in 41 years. With high inflation rates persisting, it’s unsure how issues will ease over the next year, however concerns of a recession remain. While there’s nothing that business owners can do to change the economic climate they’re working in, there are steps they can take to prepare for a recession. Seeking professional business rescue advice is crucial for putting your company in the best position possible for riding the economic storm that persists into the new year.
Supply Chain Security
Supply chain issues have become a problem due to a multitude of factors, including the impact of Covid, labour shortages and the Russian invasion of Ukraine. This has left many companies struggling to get the goods they need, when they need them and for the right price. In order to survive the future business challenges that supply chain disruption may bring, it’s important that businesses are establishing contingency plans and making sure that they have a wide network of suppliers to fall back on should problems persist. Keeping cash flow stable and building up inventory where possible is also key.
Labour Shortages
This year many companies have commented on struggling to recruit for the skills that they need, and it looks like this may continue to exist among the future business challenges we’re expecting to see next year. The ongoing impact of the pandemic as well as Brexit are partly responsible, however it’s been suggested that other factors such as an increase in early retirement have also contributed to the shortage. In order for businesses to attract the skills that they need in 2023 they’ll need to remain competitive and be willing to provide training to upskill their existing workforce where necessary.
Cyber Security
Another one of the future business challenges to prepare for in 2023 is cyber security threats. Unfortunately, cyber attacks are now a relatively common occurrence. As businesses become more digital and accumulate more data, the threat of cyber crime increases. Whilst any business that works digitally can never be totally immune from cyber security threats, there are steps that can be taken to significantly reduce the threat of cyber crimes. Taking proactive measures like backing up data, improving password protection and securing your networks will all make a big difference in helping to protect your business.
Meeting Customer Expectations
Another one of the future business challenges that companies in certain sectors, like retail and eCommerce may see in 2023 is more demanding customer expectations. With many companies using immersive technologies, such as Artificial Intelligence (AI) to promote their goods and services, many customers now expect a more interactive customer experience. This coupled with the decrease in consumer spending caused by the cost of living crisis makes it challenging for businesses to attract sales. Making sure to stay on top of sector trends and implement competitive pricing where possible is really important for standing out from competitors.
Being proactive in taking measures to combat the future business challenges that may arise in 2023 is essential for helping your company stay afloat in difficult periods. However, if you do find that your business is struggling there are steps you can take to recover it. Our experienced team of business turnaround specialists at Ballard Business Recovery can advise you on how to futureproof your company, and how to respond to the difficulties you’re facing. Looking at your individual circumstances we can advise on the best company rescue strategies tailored to your needs. Don’t hesitate to get in touch in order to discuss your requirements.
