Expanding a business isn’t a straightforward journey. There will certainly be obstacles to overcome along the way, and 2022 has presented some of its own unique challenges. However, knowing the main challenges to be aware of will ensure you’re as prepared as possible to keep your company on the right path to success. These are some of the most common obstacles to business growth that it’s important to keep in mind.
Supply Chain Disruption
Unfortunately, one of the biggest obstacles to business growth in 2022 continues to be supply chain disruption. The cause of this is complex. The pandemic has had a big role to play due to shifts in demand and labour shortages, which the ongoing impact of Brexit has contributed to. On top of this, the rising inflation levels that we’ve seen this year are exacerbating the problem. In order to minimise the impact of these disruptions, it’s sensible to use multiple suppliers if you can, rather than relying on one single supplier.
Increased Cost Of Overheads & Raw Materials
As we mentioned a moment ago, inflation has had a huge impact on the UK economy this year and created some major obstacles to business growth. The natural consequence of inflation is that everything goes up – that includes general overheads and industry costs, as well as the cost of raw materials, enhanced by supply chain shortages and disruption. Rising energy costs are also playing a big role in making businesses more expensive to run. In order to make sure you’re keeping costs down where possible, it’s essential to maintain accurate financial records, so that you can flag areas of overspend, and keep spending at a minimum.
Higher Interest Rates
Another natural consequence of inflation, higher interest rates are another one of the biggest obstacles to business growth in 2022.The main problem with higher interest rates is that it makes it more expensive to borrow money from lenders. This makes it harder for companies to gain the funding that they need in order to expand their business. Higher interest rates also encourage people to save their money, rather than spend it, which brings us onto our next point.
Decreased Consumer Spending
With the cost of living crisis as serious as it is, consumers are sure to be changing their spending habits. With all of us looking to cut back costs where we can, most people will not be able to spend as much money on non-essential items as they used to. This is one of the most significant obstacles to business growth, as it makes it a lot more difficult to gain new customers and to retain existing customers.
Ongoing Impact Of The Pandemic
It goes without saying that the pandemic had a huge impact on the economy and therefore on everyone trying to run a business. Major disruptions to supply chains, goods and labour shortages and changes to consumer behaviour all created a strain. The same problems are still lingering, whilst the emergence of the Omicron variant, has presented challenges to staffing throughout the year, as well as continuing economic uncertainty.
What Should I Do If My Business Is Struggling?
There’s no denying that 2022 has been and continues to be a tough year for businesses. The most common obstacles to business growth that we’ve highlighted in this blog emphasise this difficulty. So, if you are struggling to grow your business, or have concerns that it is failing, you certainly aren’t alone. If you have concerns about your company, it’s important to seek professional guidance swiftly. Our experienced team of business turnaround experts at Ballard Business Recovery can help stabilise your business, and place it in the right direction for success. Assessing the individual needs of your business, we can help implement recovery strategies for moving your business forward. Please don’t hesitate to give us a call or send us a message to hear more about how we can help.
