Posted: Thu 6th Apr 2023
According to new research from Vodafone Business, UK, micro-business founders worry their businesses will only survive in 2023 because of the financial crisis.
Micro-business owners across the UK worry they will face skyrocketing costs, shortage of labour and declining consumer spending to the extent that they may not recover. Almost three-quarters say they have natural worries for the future, with 10% saying they may not survive 2023.
The leader of worries for micro-business owners is the rising cost of fuel and power (57%), staff wages (34%), broadband and phones (32%), rent/mortgage (32%) and transport/distribution (30%).
It is no surprise to micro-business owners that the study found them to be working 46 – 56 hours per week on average. The majority expect to work longer hours in 2023 to make ends meet.
The Yellow Mastermind - The Growth Chair: If this were my business, I would set clear boundaries for my working hours and journal my emotions every day before work.
The books will become paramount
2023 is the time to audit the books to ensure cash reserves navigate the stormy times. This essential process is a fantastic way to catch things they might need to focus on. It is common to overlook unused software as working in the business takes the spotlight.
Healthy finances cannot be an afterthought. Financial health must be fundamental in a business strategy to survive past the five-year mark or during a recession. Understanding the numbers will improve decision-making and clarify when it’s a suitable time to invest in growth.
The Yellow Mastermind - The Growth Chair: If this were my business, I would hire an accountant and ask for quarterly reviews.
Changing for the current climate
It will be the pandemic again; either adapt the business model or determine the proper pricing structure. Buyers don’t want to spend as much money during a recession, but decreased spending isn’t all defeat — it means buyers will be more focused on purchasing products and services they deem essential and highly valuable.
Confident assuring, micro-business owners became accustomed to adjusting to customer needs in a restricted world. Many benefitted from a shift in online services, additional revenue streams and operational cost savings. Micro-business owners must maximise their resiliency developed in 2020 and be more attractive in a recessionary climate.
The Yellow Mastermind - The Growth Chair: If this were my business, I would avoid a sales plummet by reaching out to their top 20 clients or suppliers as early as possible.
Wellbeing takes a prime position
Unsurprisingly, recessional pressures are impacting micro-business owners’ health and wellbeing. In November 2022, Simply Business’ study with 600 business owners found that 20% would describe their mental wellbeing as “bad” or “very bad”.
They also found that these business owners had more time to devote to other areas of their life since the start of the pandemic.
30% said they learned new skills
30% said they adapted their business’s services or products
30% said they adopted new technologies
The overworked mindset is troublesome, affecting not just them but the families they seek to provide. Money is important, but so is their time with their loved ones. The two are conflicting, but wellbeing will always triumph.
The Yellow Mastermind - The Growth Chair: If this were my business, I would work on streamlining my processes to ensure the business operates without me. If I need to take time off, it will be operating effectively.
Accelerated digital transformation
In 2023, we see the continuance of transformative technologies such as artificial intelligence (AI) and automation software. Transformational digital technologies will continue collaborating, and micro-business owners will benefit from the seamless integrations. It enables intelligent enterprises where systems and processes enhance each other to achieve essential daily tasks most efficiently.
Micro-businesses must deploy appropriate technology in every area of operations. Think persuasive sales and marketing, satisfactory customer service, robust operations, and aligned products and services. Access becomes more attainable as innovative technologies are now available in ‘as-a-service’ models with no code or complex environments.
The Yellow Mastermind - The Growth Chair: If this were my business, I would look into which processes are manual and mundane, then search for solutions on the search engine.
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