Recap 2022: Key Challenges Faced by Businesses This Year
The path of entrepreneurship is always laced with challenges, and entrepreneurs are in a constant loop of finding new ways to stay afloat and relevant in the industry. The economy is slowly recovering, and many businesses are still trying to get over the aftermath of the pandemic. This is true for startups and multi-national companies alike, dealing with curve balls in their journey. Let us look at some of the key challenges business owners faced this year and how they resolved them.
The Economy
The pandemic brought various struggles, and one of the key challenges was on the financial front. Although the economy is slowly improving, businesses are still dealing with many associated challenges. Some businesses have revised their strategies to sustain themselves in the market, whereas others have enforced hiring freezes. Companies had to put a pause on monetary benefits and increments. However, entrepreneurs have been looking at ways to improve employee engagement. They are conducting fun activities and allowing them flexibility in work timings to retain the right talent.
Keeping Up with Industry Trends
COVID-19 brought about many changes and led to increased competition among different industries. The trends have been changing, making it difficult for entrepreneurs to cope with them. For instance, Spotify also changed its strategy and revenue model. They shifted their vertical towards the paid podcast subscription model, a move that their users highly welcomed. It even helped them gain more loyalty among the audience. While these situations can be difficult, one should aim at incorporating innovation and keeping up with the trend. You must conduct market research to understand the opportunities as well as the threats that will affect your business.
Hypercompetition
No matter what the industry is, there is extreme competition in all spheres. Alongside this, new entrepreneurs are developing similar ideas and resolving customers’ problems every day. Many services and products are available at the same prices, making it difficult for business owners to stand out from the crowd. This is one of the reasons why every entrepreneur should begin by conducting market research and doing a SWOT analysis. Unless you are aware of the strengths, weaknesses, opportunities, and threats, you will not be able to develop the idea. Take your time to understand the competitors and determine what you can offer to the customers that is different. We would suggest you avoid launching the product or service until you are sure of the USPs. There is no need to join the crowd and offer the same service which is already available in the market.
Data Security
Data security is another critical challenge faced by many business owners. Whether you have an e-commerce or a brick-and-mortar store, you will have to maintain the data of the customer profiles, which finds utility in many ways. When you know your audience, you will have better strategies to target and deal with them. You can save the data on the cloud and operate it online in an easy manner. However, hackers are constantly looking for new ways to steal data. It is even found that businesses sometimes sell data to research and other companies. This can be extremely alarming, and companies should be careful about this breach. No matter what, the security of the company and its stakeholders’ data is your responsibility. As a leader, you should look for strong security systems to protect your data. Besides this, train your employees in data security and provide them with a list of measures of what can be done and what should be avoided.
Increased Demand for Workplace Flexibility
The definition of work and workplace has changed, especially after the outbreak of COVID-19. One of the most significant things that have happened over these years is that it has brought changes in the work timings. We live in an era where we are no longer limited to 9-5 jobs. Many companies experimented with flexible working hours during the pandemic and have continued with the trend. While a flexible work environment may benefit the employee, it could be challenging for the employer. Every employee can manage their own schedule, which may help promote productivity. However, it may impact collaboration and team-building initiatives. As a business owner, you will have to make some difficult decisions to maintain discipline in the work environment. You may introduce a flexible work timing policy for individuals who are sick or whose parents are unwell. The scheme may even be helpful to those who have become new parents. Avoid making flexibility a norm for all employees as it could affect team spirit and may even lead to conflicts. If you provide this option to the employees, you may ask them to work during the morning or evening hours after discussing it with the reporting manager. Maintain daily or weekly reports for employees who are working on flexible schedules to keep track of their performance.
Making Virtual Events Personal
Over the past few years, the landscape of the events industry has completely changed. Businesses across the world are conducting virtual meetings and events to connect with their audiences. While such events are more accessible and may help reduce the cost, they can negatively impact engagement levels. Creating a positive relationship and making virtual events more personal can be complex. Begin by searching for the right platform that may be suitable for your audiences’ needs. Besides that, you must take steps to make the event more interactive. Do not just include presentations and boring lectures. Focus on how you may engage the audience by conducting a fun activity or a game session. A Q&A round or the opportunity to allow the participants to network could also be helpful in making the event a success.
Employee Burnout
Employee burnout is a critical issue that has been aggravated, especially after the pandemic. To cope with the backlog situation, a large number of employees had to work overtime. This led to an increased number of employees dealing with burnout. Employers are also finding it challenging to track the performance of their employees. Consider incorporating a tool and checking the number of assigned tasks. Take regular feedback to understand if they are overwhelmed with work. While these are some of the challenges businesses faced this year, one of the key challenges is dealing with changing customer expectations as they become more informed and educated. Therefore, one must take time to understand their audience before implementing any step or taking any action. Take these key challenges as a way to enhance your learning and find ways to deal with them.
A print and digital magazine for businesswomen focusing on leadership, business, and entrepreneurship that made its debut in 2017 has WomELLE Magazine.
