What Challenges Are Businesses Likely To Face In 2023?

The last few years have been difficult for many businesses, particularly due to unprecedented circumstances like inflation and an increase in the cost of living. It’s likely that 2023 will be no different, and business owners should be prepared for potential challenges ahead of them.

In this article, we’ve come up with some of our predictions for what challenges we believe businesses will face this year and what they can do to overcome these.

Supply chain shortage

Issues with supply chains first began during the COVID-19 pandemic and have been worsened by Russia’s invasion of Ukraine and the Great Resignation. As a result, certain materials and parts are now difficult to obtain and will come with a hefty price tag.

Businesses should avoid over-ordering products and supplies to compensate for backlogs, as this could exacerbate the problem. Instead, owners should try to focus on long-term recovery and think of ways to prevent these shortages in the future.

Data security

The number of cyberattacks, phishing scams and ransomware has never been so high and is a growing concern as businesses become more digital. The more data companies hold, either about employees or clients, the more likely criminals will want to try and steal it.

In response to this, businesses must rethink their data security by taking proactive measures like purchasing encryption software and backing up their data to the cloud. Attacks can occur regardless of the size of the business. Obtaining cybersecurity resources is often challenging for small businesses, which is where a small business loan could prove useful.

Concerns over sustainability

Climate change is currently one of the biggest challenges faced globally, with both businesses and consumers needing to become more sustainable in their practices. Businesses in particular have a responsibility to assess their processes and decide how they can be more eco-friendly.

Such changes may include the uptake of renewable energy sources, a shift to environmentally friendly packaging or the implementation of remote working. If a business can demonstrate that it is more sustainable, it may find that customers feel more satisfied buying from them and more clients will be willing to collaborate.

Customer expectations

Technology is forever changing and developing, meaning businesses must re-design and re-evaluate their processes to keep up with current trends. Meeting customer expectations is key and people love more than anything to be provided with an immersive experience when online.

As an example, virtual fitting rooms allow customers to essentially ‘try on clothes’ without the need for visiting a real-life store. Similarly, you can help customers visualise furniture in their home before they buy, to assess whether it will fit or match their décor.