The pandemic posed major challenges to SMBs when it first emerged. Two years on, these challenges remain. Some of the major trials SMBs will face in 2022 include attracting customers, developing and maintaining an engaging online presence — and most importantly, ensuring that operations run on sound financial planning.
Fortunately, these past years have also presented the experience needed to better tackle these issues. Below we discuss a few key trends that are poised to transform SMB financial planning in 2022.
Developing businesses with less
Even with limited resources caused by economic uncertainties, many SMBs were able to survive and even flourish. In part, this can be attributed to factors like rapid digitalization and reorganization for maximum operational efficiency. For example, many utilized the country’s vast pool of millennial freelancers to outsource tasks like accounting and software development. This guide to the gig economy from recruitment specialist LHH explains that providing high rates for quality output can pull in the untapped power of this particular workforce. Freelancers can be paid less, so aren’t covered by company taxes, and don’t need benefits, which is ultimately a cost-effective way to get more and better work done with less. With the pandemic teaching SMBs how to wisely spend their resources, these businesses can thus allocate more money toward business growth.
Formulating more flexible plans
The sudden emergence of the pandemic may have also made businesses warier when drafting long-term financial plans. Consequently, many companies now use scenario-based business planning approaches. This involves consulting industry-specific experts to forecast political and economic conditions — like wars or recessions — and how that may affect their bottom line. As we’ve previously mentioned on our blog, integrating these forecasts into your financial plans will ultimately make them more flexible. For example, a company may have foreseen the Great Resignation by taking note of inadequate benefits given to workers amid pandemic difficulties. It could have then softened the blow by providing benefits like remote work options and creating engaging recruitment strategies to snap up new talent. By preparing for multiple possible outcomes, businesses are less likely to lose funds from sudden and detrimental events like COVID-19.
Embracing new technologies
As mentioned above, rapid digitalization is one thing that helped countless SMBs thrive despite the pandemic. This trend will continue in 2022. Consumers now expect the ease and convenience given them during the past 2 years to remain intact in everything they do. They prefer a seamless omni-channel experience when shopping online, wish to continue making tele-health appointments, and would much rather work and exercise at home. SMBs thus need to innovate their offerings while providing speedy and reliable customer service. This can be done by adopting contactless payment infrastructure, using automation software to streamline business operations, and improving your cash flow with our services — which got our company, Crowdz, named as one of the World Economic Forum’s Technology Pioneers. These initiatives can draw in more customers while also helping you avoid business disruptions in the future.
Meeting ESG criteria
Due to both the pandemic and the ongoing climate crisis, consumers now prefer sustainably- and ethically-produced products and services. Consequently, businesses are now making significant efforts to comply with Environment, Social, and Governance (ESG) criteria. These cover the environmental impact of business operations, as well as internal and external business relationships. In our guide to what SMBs gain by going green, we explain that ESG criteria can improve relationships with investors, increase job and customer satisfaction, and lower your company’s carbon footprint. Most importantly, you can save money by implementing environmentally-friendly methods of cutting costs. This can include phasing out paper, switching to renewable energy, and using greener online resources like the cloud. Ultimately, ESG criteria can help your business adhere to sustainable practices while simultaneously improving your bottom line.
Current events are shaping the future of SMBs in everything from consumer engagement and talent recruitment to financial planning. Here at Crowdz, we can give you the head start you need this year by improving your cash flow, so you can take to heart these lessons learned over the past few years and thrive even further moving forward.
Article written by Rose Jolson
