Small businesses make up about 99% of all businesses and contribute to about 40% of the American GDP. Clearly, the country supports small business owners. As they do, these businesses make profits and that, in turn, helps in boosting the economy. Given the stakes, small business owners will have to ensure that they prioritize some critical elements so as to not only keep their operations running smoothly but also grow them as well.
Here are five issues that might occupy the minds of small business owners in 2024.
- Cyber security
With the introduction of online shopping and transactions, digitization has accelerated. This gives rise to a plethora of online threats, scams, and other security concerns. Larger companies have cyber experts to help them guard against such threats, but small business owners often get left behind.
System intrusion, web application attacks, and other attack patterns most commonly compromise credentials and internal data. Many small business owners think they are not big enough to get attacked by cybercriminals. However, studies have shown that small businesses are likely to get more threats as their systems are not strongly protected.
Small business owners know that they must improve their cyber security in 2024 by strengthening the business’s security, Also, they must mitigate against these risks by acquiring appropriate insurance. Any cyber-attack can cost between $826 and $653,587, which is enough to shut down a small business. As a result, in the coming year, strict and deliberate efforts are required to solve this modern-age problem.
- Renewable energy, incentives, taxation and more
There will be a growing emphasis on sustainable practices, the use of renewable energy, and reduced wastage of natural resources. The government has already begun several incentive-based plans for businesses to “go green” and imposed penalties on those with environmentally harmful practices. Many small businesses are concerned about how to make their processes more efficient and environmentally friendly to match the tone of the future world.
Small business owners may want to use some of these greener methods of operation in 2024. This not only helps with regulatory compliance but also helps with brand value because consumers prefer brands that are conscious and responsible. The owners may also be looking forward to collaborating with others on the same front and bringing on suppliers or partners who can help in making their operations greener and better.
- Rescuing the business from natural disasters
Many brands suffered greatly because of the scale of various natural disasters that plagued the country in 2023. Small business owners will surely be focusing on their risk management profiles in 2024. Floods, hurricanes, and winter storms affect many regions of the United States and their severity and incidences are growing year on year. Businesses will invest in flexible yet specific insurance policies that are ideal for their business models based on a better understanding of their risk profiles.
According to reports such disasters displace people, often for good. By some estimates, around a million people never return to their homes after moving out under such circumstances. Consider what this means for small home-based businesses! Some businesses will probably never recover and restart after a natural disaster. This clearly demonstrates the importance of investing in a good portfolio of appropriate insurance policies to fuel the kick-off after such an event. Chances are that for small business owners, 2024 will be all about protecting their companies from natural disasters by investing in the right policies. This could include earthquake insurance, flood insurance, business interruption insurance, and other similar coverage. However, to obtain these insurances and ensure that the business is fully protected, a portfolio assessment may well be the first step.
- Supply chain disruption coverage and regulatory compliance
Events in faraway places also impact American small businesses. For instance, when the Russia and Ukraine war started, there was a sudden halt in sunflower oil supply and the prices of palm oil soared dramatically. This had a crucial impact on businesses that relied on these supplies.
Moving forward, it will be of high importance to businesses to guard against revenue loss because of interruptions due to wider economic and environmental factors. Thus, it would be surely in the minds of small business owners that they need to invest in the right policies to help them survive. Business interruption insurance may well be on the minds of small business owners in 2024 in these uncertain times.
- Looking out for flexible and tailored policies
Flexibility and customization may well be the themes of 2024. When it comes to small business owners this combination will become of even more prominence because of changing work environments and cost efficiency requirements. In the context of insurance, small business owners often struggle to find the right policy to cater to their unique needs. They will look for that “just right” mix of apt coverage and affordable premiums.
Tailored policies will be on the agenda in small businesses that need to abide by government compliance, save on insurance costs, and at the same time protect their assets with apt risk management strategies. Customization will be a point of discussion. As will the relationship with trusted insurance agency partners to help in clearing claims faster, protecting what needs to be protected, and eliminating the consequences of being underinsured.
Being a small business ourselves we understand how difficult it is to keep sailing the boat during turbulent times. Gonzalez Insurance can assist you in maintaining the right risk management profile by conducting a thorough analysis of your company’s protections and policies. Contact us to learn more about our tailored plans for small businesses.