2023 was a year of extremes. It contained some of the highest levels of hype in recent memory with the introduction of generative AI but also a windfall of uncertainty sowed among small businesses. Economies at both global and local levels have been struggling and it seems no one is certain how to correct this trend. Luckily, help has arrived in the form of enterprise-grade technology for what’s sure to be a big year for the industry.
Here’s more information on my 2024 predictions for how the industry will affect small businesses, and what folks can start doing to come out on top.
Inflation Will Continue Into 2025
The rapid inflation we experienced in 2023 is showing no signs of abating, thus I’d expect its reach to extend through 2024 and beyond. Small businesses in particular need to take note. Many may have been shielded by the immediate effects of inflation, especially if the operated primarily on a local level, and swift action in early 2024 will mitigate how impactful inflation turns out to be for their growing business in the long term.
The end of the year is a great time for small businesses to conduct an audit of their spending. There are likely a few initiatives for 2023 that failed to pay dividends and can therefore be ceased, and the sooner those are identified, the sooner funds can be diverted to more profitable endeavors that incur lower costs. Along these lines, small businesses can’t be afraid to increase investments in areas that might bolster the company’s ability to weather continued inflation. The process of maintaining financial security is a holistic one and likely cannot be completed with a single budget cut.
Luckily, helpful enterprise-grade tools are finally becoming available to small businesses. Companies operating on a unified CRM can download software extensions from the vendor’s marketplace, enabling precise customization and adaptability to encourage longevity. If the vendor has been active for some time, odds are good that these extensions will solve for a large variety of use-cases, as well. If not, even further refinement is available via developer portals, previously relegated to enterprise software accounts and making their way into small business software.
Investing in a powerful, scalable technology solution also helps small businesses maintain visibility into their efforts from the get-go. Some small business CRMs include analytics functions and instant data sync across multiple locations so that when the time comes to reflect on next year, the most pertinent information will already be available and synthesized.
AI Will Require a Strategic Approach
Generative AI made a huge splash in 2023 but much of the ripple effect was noted at the enterprise level; the technology’s implications in the small business world are still being identified. In 2024, we can expect to further refine the use cases for which AI has the biggest impact on small businesses. The barriers to entry are lower and knowledge of AI’s effect on small businesses continues to be released.
Small businesses can join the inevitable fray by looking to AI to fill in the gaps. This can be a small step, like utilizing AI to help choose an icon for a new app, personalizing customer experiences with a little flair, improving an individual operation within the supply chain, or even looking to the technology for help with financial forecasting. With few employees, small businesses have to maximize each person’s contributions; enabling those folks to focus on only high-priority tasks, with AI in a supporting role, ensures a company’s people are operating at their fullest potential.
As small businesses begin to implement AI, it’s paramount that they don’t lose sight of data privacy. With the high number of data breaches that have occurred this past year, along with the inconsistent policies coming out globally around consumer privacy, companies have to tread carefully. They can’t hold out for governance to protect user data, as most of the legislation is too far behind the technology’s rate of evolution to make a meaningful impact. Instead, small businesses should seek out a vendor who offers full transparency and focuses on the long game of technology, rather than chasing after the newest trends.
EX Further Becomes Entwined with CX
Customers are what ensure a businesses’ financial success, but employees are what attract and retain customers in the first place. It’s understandable if SMBs want to double down on CX in 2024 as a reactionary measure against rising costs of doing business, but I encourage them to look inward at EX before gazing outward.
The foundation for remarkable EX in 2024 will be the company’s full technology suite. A centralized hub and source of truth ensures all employees can access any piece of information at any moment, and provide instant updates to other employees helping a particular customer along their journey. Adoption of AI and ML into SMB technology will rapidly increase success, offering real-time data analysis not just for predicting trends but personalizing customer interaction and sales forecasting with a strong focus on cybersecurity measures. Plus, the increased levels of personalization and customization offered to SMBs enables employees to optimize the tools for their workflow.
Technology-driven, People-focused
Small businesses now have access to some of the most advanced tools available, but their work is far from over. Even the most robust AI technology today can’t navigate the infinite complexities of growing an SMB into a veritable corporation. It lacks the heart and spirit of a small business owner. No matter how futuristic 2024 may seem, the strongest way forward will be forged in how AI and humans work together by providing checks and fail-safes for each other. The future is bright, but what’s most important now is to focus on the present.
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