The rate at which change is occurring globally is at record time. Technology and the human tendency to want to increase in efficiency will continuously produce advancement that if you are not at least in the know about, can see you lagging behind. This year is no different and the Entrepreneur Weekly’s aim is to equip you with information that will catapult you into the right direction for your business.
The last blog post covered four trends that entrepreneurs should look out for in the year 2023 and those were simply, the need to continue investing in technology for the improvement of your business, the necessity to be an innovative entrepreneur, the reality that the conversation around sustainability is not going away and the increase in niche market opportunities. Today, we dive into four more trends that we will see in 2023, so you can be aware of the general landscape and how the economic climate can affect your business.
Inflation and Supply Chain Security
There is undoubtedly great trepidation surrounding how inflation and the recession will affect businesses. These are legitimate concerns, as experts are saying we should expect ongoing inflation and reduced economic growth. The reality is that many companies and industries are still battling the effects of the covid-19 pandemic and the war in Ukraine and these are considerations for this year as well.
According to Forbes Magazine, “To combat this and stay afloat, companies need to improve their resilience in any way that they can. This means reducing exposure to volatile market pricing of commodities, as well as building protective measures into supply chains to deal with shortages and rising logistical costs.”
Long-term Cash Planning
In an effort to combat financial woes and maintain wealth during these times, entrepreneurs are looking into long-term cash planning for their budgets. This idea of long-term cash planning essentially includes investing in long-term growth initiatives or commodities associated with your business. According to Finances Online, “Rising inflation alone is pushing entrepreneurs to ensure their cash remains solvent and stable. While it may be an upfront cost, it encourages long-term stability and insures against rising expenses.”
Finances Online further explains this idea by saying, “It’s similar to taking out a life insurance policy which requires individuals to pay more initially but save money as they get older. To that end, lots of entrepreneurial companies are investing in their employees, retirement packages, and so on. As a bonus, this is also ideal for attracting top talent across industries.”
Subscription-based businesses are those that are basically selling a product or service in return for a recurring fee, these offer content, software, service, or even physical products, such as Netflix and Spotify. Recently, McKinsey did a study that revealed that “49% of shoppers currently use a subscription service. However, the added convenience is expected to continue stimulating continued growth.”
Live-Plan says, “Adapting a subscription-based business model is a major focus for most established businesses moving forward. Consistent revenue, better engagement and brand loyalty, and increased customer value are all major benefits. However, it will take investing in excellent service and online infrastructure to be truly effective.”
E-commerce giant, Amazon has a ‘subscribe and save’ feature which allows the seller to maintain an ongoing relationship with the buyer. It is a sure way to retain brand loyalty and future sales.
Social Commerce is where a business sells products directly on social media, and it has no doubt risen in the last few years. In fact, in 2020 it was a US$89.4 billion market and is projected to become US$604.5 billion by 2027. It’s designed to be a space that allows for ease of interaction with customers and gives your business the opportunity to be present where they are most engaged. If your business is hardly on social media because you think it is just for young people, it will be useful to look into how this option proves to be cost-effective and how well it integrates with other business operations.
Along with this social commerce trend, is also Hybrid Consumers and this is the marrying of online and in-store shopping. Business Advisor, Bernard Marr notes, “Hybrid shopping is about bringing the best of both of these worlds together — either online or offline — to create customer journeys that tick all of the boxes.” He agrees that experiential retail is the future and those experiences need to appeal to the hybrid consumer.
JBDC Training Programmes
Now that we have whet your appetite for learning, it’s time for bigger things. Potential and existing entrepreneurs are in for a treat at the start of this new year as the Jamaica Business Development Corporation (JBDC) kicks off its training programme with two workshops geared at both client groups.
The first of the workshops titled FUNDAMENTALS OF BUSINESS is designed especially for potential entrepreneurs. The workshop will be held in four modules on Tuesdays in February from February 7-28, 2022. The cost is $4000.
The second of the workshops titled STARTING A BUSINESS, is designed for persons already in business and will be held every Thursday in March from March 9-30, 2022. The cost is $3000 per module and $10,000 for the entire series.
Interested persons are invited to email to register.