5 small business trends you need to know in 2023

With the chapter on 2022 now closed, we can look forward to the coming year. During the past twelve months, Thryv kept a close watch on what issues were shaping the small business landscape in order to better understand what to expect in 2023. Here is what we uncovered, writes Elise Balsillie, head of Thryv.

The 5 trends that will impact businesses in 2023

1. Rising energy prices and inflation

Energy prices are forecasted to soar by up to 50 per cent next year, dealing small businesses another blow. Rising inflation is a national issue and will be one of the biggest concerns affecting small businesses in 2023.

To prepare for this, small businesses can consider adopting technology such as a cloud-based storage system that staff can access remotely would alleviate energy consumption.

2. Safeguarding security and customer data

Cyber criminals don’t discriminate by business size.

Cyber attacks are serious business for small companies. They often result in identity theft or the loss of company data, both incredibly damaging to a small business. Worst-case scenarios can include devastating disclosures of customers’ personal information.

Now more than ever, small businesses need to have a cyber security strategy and action plan in place. Regardless of the size of the business, hackers want data. Whether that’s your customer data, health records or credit card information.

Adopting successful processes in 2023 will help keep your business out of the danger zone. Be sure to evaluate the technology your business uses, keep software updated, and create a risk management plan that includes training your employees to help combat a cyber attack.

3. Hyper convenient customer experiences

In 2023, customers will want an enhanced customer experience with convenience and technology playing a pivotal role.

A recent 2021-22 CPA Australian small business survey found fast-growing small businesses are much more likely to be selling online, receiving payments through new payment technologies, and using social media in a variety of ways.

Technology will play an even greater role in 2023. With the rise of convenient apps such as Milk Run and on-demand services, customers across vertical industries will expect convenience 24/7.

To support small businesses with convenience, small business owners can consider flexible payment options and digital accessibility.

Regardless of how big or small, your business is, a bar has been set for customer service, and customers will expect that level regardless. Small businesses that adapt to this will be able to compete with the larger ones, and those that don’t may fall to the wayside.

4. Conscious customers

There is a growing trend that customers are increasingly choosing businesses that support environmental and sustainable values. A recent survey by Finder found that one in two Australians actively look for greener products or services.

Having a product or service that makes a valuable contribution to the planet will continue to drive purchase as we head into 2023.

Small businesses can respond to this trend by focusing on how they can operate more sustainably day to day from packaging to products. In addition, how a small business can contribute towards sustainability such as a charitable partnership, which has huge rewards for employees and the community will also look favourable.

5. Workplace wellness

Over the past two years, changes in the workplace and how we work day to day have brought workplace wellness to the forefront. The spotlight on employer and employee mental health, burnout and stress management will continue to be a key priority in 2023.

Small business owners are feeling burnt out by all the pressures from the pandemic and continued staffing and supply chain issues.

It’s therefore important for business owners to look forward and adopt practices before the start of 2023. Things such as adopting technology solutions to save on admin time and in turn, enable more family time, or practising stress management techniques. Not putting workplace wellness first could have a bigger impact on a small business in the future.

As we kick off 2023, small businesses have had plenty of challenges but there are also plenty of opportunities. Embracing these trends can build the foundation for resilience and long-term growth.

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