Forbes reports that more than half of the workforce in the US is now employed by small businesses. The fact that nearly 99.9% of businesses operating in the US as of 2022 were SMBs demonstrates how crucial these businesses are to the economy. According to the same Forbes report, these businesses are operated like one-man armies.
Considering how businesses have grown over the last few years, 2023 appears to be an intriguingly promising year for small business owners. Let’s examine all the trends that are likely to materialize in the upcoming year.
Digitizing operations and automating processes have become imperative for small businesses today. This can help them track orders, schedule meetings, and streamline customer responses, among other things. In fact, as Salesforce outlines, small businesses adopting digital transformation realize 8x more revenue. For retail brands, financial services institutions, and other service-based companies, investing in digital platforms and service delivery solutions can help them scale up operations and create valuable customer relationships — a trend that is likely to be further enhanced in 2023.
Thanks to eCommerce, customers today have a wide range of options when it comes to purchasing goods or services. Small businesses are constantly working hard to distinguish their brands from the sea of competing goods as consumer expectations evolve, attention spans reduce, and the risk of customer churn becomes even more evident. Another area that is taking root is the introduction of premium services and the provision of individualized, personalized advice. In 2023, how customers are treated will play a significant role in how small businesses operate.
Inflation and Supply Chain Issues
Over the past few years, small business owners have been plagued by a number of issues, including inflation, the recession, and supply chain disruptions – especially in the context of pandemic-associated upheavals. According to a Xero report, inflation has caused prices to rise. These problems will continue in some form or another in the upcoming years as well, necessitating small businesses to tread wisely and carefully.
One of the biggest trends in 2023 will be that of circular economy and sustainability, which are urgently needed and expected from all kinds of businesses, governments, and consumers. Brands today are being recognized for their efforts to leave no carbon footprint. The same line of reasoning applies to how small businesses operate, collaborate, and submit proposals. For instance, a company that deals with food and nutrition needs to consider offering vegan options to meet the growing consumer demand or offering sustainable packaging solutions.
The Need for Talent Retention
Small businesses have added over 12.9 million jobs in the last three decades. As the job market expands, there is a greater need to keep and retain the best talent. Employees are getting very selective about whom they want to work with and under what conditions. Small businesses must be more cautious in developing the right culture to retain top talent. This trend will be high on the radar for small businesses as more and more Gen Zers enter the workforce.
Numerous factors make small businesses particularly vulnerable to cyber-attacks, but most business owners don’t give enough thought to the fact that this problem can be challenging to handle. Protecting the company from phishing and other cyberattacks will be a top priority among small businesses as operations move online and the gig economy/contractual jobs increase. Service-oriented companies and financial institutions, in particular, that handle sensitive customer information need to step up their efforts in this area because a data breach could result in lost revenue and prove to be detrimental to brand reputation.
All considered, every business needs to take specific insurance factors into consideration to safeguard their operations from any mishap or disaster, whether it be a service-oriented enterprise or a retail establishment with a product-oriented function. Let’s take a look at these considerations.
Insurance Factors to Consider
Risk Mitigation and Portfolio Analysis
Risk assessment and portfolio analysis performed by a professional are integral to successful operations. Every company has unique risk factors, so conducting this analysis is necessary to better protect the business, its employees, and the associated customers.
Understanding the Legalities
Small businesses need to take a look at legal issues, local regulations, and trends in order to be able to best handle any setbacks or challenges. Doing so beforehand and understanding the underlying causes of such challenges is more likely to lead to a resolution that can help the company avoid loss and litigation altogether. While pursuing insurance, different operational scenarios and associated legalities must be taken into consideration.
Umbrella Cover to the Rescue
A great way to protect your company from unforeseen events is with umbrella insurance. This coverage supplements your existing insurance, protecting you and your company from risks such as unintentionally hurting someone or dealing with problematic advertising, among others.
Choosing the Best Providers
The best insurance service providers ensure that the business is comprehensively protected on the back of appropriate policies and extensive risk analysis. So, the most important thing to think about when getting insurance for your small business is choosing the right provider. At the end of the day, small business owners must be vigilant when it comes to safeguarding their companies from harm.
Based on the analysis of your portfolio and the associated risk factors, Gonzalez Insurance provides personalized insurance quotes for your company’s smooth operations. Contact us to learn more about getting a fully customized insurance plan for your small business’s complete protection in 2023.