Challenges for Starting a Business in 2022
With solid shifts in the workplace since the pandemic took over the world as we knew it, most businesses look quite different from before. And the challenges for starting a business in 2022 just keep on coming.
Whether you are a budding entrepreneur or an experienced serial start-up ready for your next venture, things have moved on and the times they are a’changing. Even though someone starting out in a new business should have a healthy degree of optimism and some serious ambition, it can be tough to keep those attitudes at the forefront when setbacks present
So what things should you be on the lookout for in 2022 heading into our third year of not-quite-normal? There are some key points here that you should keep in mind for challenges to starting a business in 2022 that are likely to be on the horizon and what you can do to manage them proactively.
Is Remote Working Here to Stay?
Most experts agree that a blended proposition will be the way forward. While many people eventually missed the social and collaborative benefits of days spent in a bricks and mortar office there was a huge increase in work/life balance for those who managed it well and kept days working from home.
Some companies have pushed to have everyone return but that too has caused a wave of people leaving companies, resigning in droves. Now that people know they can do the majority of their work from home there is less incentive to spend money on transport, spend the hours in transit, and contribute to the less environmentally friendly option.
It will be important to think carefully about your employee requirements in this unpredictable market and the finance required for a standalone office. True, this does mean providing tech for employees unless you work with freelancers which is another option.
Everyone will be keeping an eye on this in 2022 to see where employee habits and choices push SME’s towards.
On that note, the prospect of acquiring skilled staff has become trickier compounded by Brexit particularly in the labour sectors.
Minimum wage isn’t necessarily going to cut it when there is a huge demand for skilled labour and a dearth of supply for these employees.
There will be a fine balance between talent attraction with financial incentive while keeping operational capital viable and sustainable.
The UK is not the only nation to have concerns about inflation. Indeed, the US is dealing with inflation issues as well. The supply chain issues have only intensified the discussion on inflation’s impact on business.
Energy costs, lack of labour, and raw materials are all affecting the pricing of goods. Affecting the costs of utilities, and the amount of available working capital. Some costs are temporarily inflated while others will remain steadier and far more permanent.
SME owners will need to consider margins. How best to weather the storm when it comes to this particular challenge. Interest rates are likely to increase because of inflation which will put a damper on SME’s who need funding from the get-go.
Cyberattacks are becoming more and more prevalent, regardless of your business turnover or how well established you are. It can often be newer businesses that are vulnerable. Because they haven’t yet invested in the technology needed to protect themselves from day one.
Ensure your client information isn’t compromised or susceptible to a breach. Data Protection is a serious issue. This can cause some serious woes for companies who start out thinking they aren’t going to be targeted because they are small fish in a very large pond. Think again!
Know Your Market and Keep Up With Trends
It’s easier said than done. But it’s a good idea to monitor your competition. Sniff out what tools they are using to get things done. We are not suggesting copycat mode, but if most of your competitors are using new social tools and technology you can’t be the one left behind.
It’s important to know which of these tools are worth investing your time in also. When you are starting out time is precious. It’s pointless to spend hours programming posts on Instagram or Pinterest if they are unlikely to build you any leads for something like professional services as opposed to a crafting company. So don’t blindly follow but see what works for your SME.
Don’t be left behind or stuck in the past. Clients and customers like innovators!
Likewise, you’ll want to ensure your branding across all platforms, marketing campaigns and other communications are consistent. Consistency is key when it comes to communicating who you are as a business. And you want to start off on the right foot. Branding is worth every penny and contributes to overall success so you’ll want to get that right.
Challenges for Starting a Business in 2022
There is plenty to think about here, but we’re keeping it positive. As time marches on we will be evolving to a healthier, balanced work-life that is beneficial for all. [Check out our other blog on business challenges here.}
By keeping abreast of the challenges for businesses ongoing you can potentially sidestep some crucial issues that would otherwise derail a less savvy startup SME.
Never stop learning and keep that ambition sky high.