As technology and the marketplace continue to move forward at a rapid pace, many small businesses can be left wondering what’s next. It’s important to see the trends before they happen so you can capitalise on them for your business. Being one step ahead could mean the difference between a profitable year, and a bankruptcy.

 

Here are the top 5 business trends for small business owners to watch out for this year:

1. Social enterprises

People expect more from companies these days. That’s why companies that also have a mission have an edge in the marketplace. In fact, many consumers are willing to pay slightly more for a product if it supports a cause they care about. Some Companies donate a portion of their profits, others only offers products that position them as environmentally friendly, sustainable and healthy. Owning a socially responsible business also means you have a clear way to connect with your customers. Use it as a differentiator to connect to your customer base and you could be building long term relationships moving forward.

2. Crowdfunding

Crowdfunding has stepped into the gap many banks left when they tightened up on small business loans. What a successful crowdfunding campaign can give you is validation for your product or service while giving you an instant customer base. For companies that may need further investment as they progress, the feedback and community you built through crowdfunding could go a long way toward getting you that round two investment.

3. Solopreneurs

It’s never been easier to hire a specialist for your business and that’s why we’re also seeing a rise in the Solopreneur. Why hire a staff of 50 when you can farm out your work to individual experts how and when you need? Technology also means that instead of having a team dedicated to customer relationship management, email marketing, or bookkeeping, you can now use internet services and platforms to handle large pieces of it. That combined with a few carefully selected experts and you don’t need an in-house team to make your business soar.

4. Selling will get harder, but connecting will be easier

It’s a fact, people no longer want to be sold to. They don’t fall for the traditional marketing. They want unique experiences, they consume content before making purchasing decisions, they look for a company with a cause (see #1), and they look to connect with a company. Thankfully, it’s becoming even easier to connect with people all over the world. Social media is free, and you can use it to talk to your customers. But more than that, you can use what you know about them to create a more personal experience. Which leads us to…

5. Data will be key

With traditional sales and marketing out the window, and people looking for something unique, how can you deliver? This is where data collection comes in. If you can collect some data about your customers, who they are, what they like, you can begin to give them the experiences they’re after. Many It’s important to remember, with any sales driven business, it’s always about the customer.

 

We hope you found our blog useful. If you would like to talk more about the financial aspects of your business, best practices on how to run it and the optimal business structure for it, contact LeeP Accountants of Huntingdon & Peterborough on 01733 699033 or use our Contact Us form