Four ways to prepare your small business for 2023

You can prepare your small business for 2023 after the unprecedented changes of 2022, as businesses and consumers adapted to life after the worst of Covid-19. While many small business owners had high hopes for 2022, the year threw them quite a few curve balls that they were not prepared for.

Now that we know how unpredictable life can become for small businesses, we can prepare to ensure that changes and other challenges do not hit so hard and so often.

“As you prepare for the year ahead, consider these four tips to start 2023 on a constructive note and ensure you are ready to face the year with renewed determination,” says David Morobe, executive general manager for impact investing at Business Partners Limited.

He suggests these four ways to prepare you small business for 2023:

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Hone your customer service

In the post-pandemic world, good customer service can make or break your business, due to the hyper-competitive nature of the current small and medium enterprise (SME) landscape, Morobe says.

“Customer experience or CX, as it has become known, has therefore been identified as one of the key ways that SMEs can set themselves apart in today’s marketplace. Take this time to examine whether your customer service is optimised in a way that nurtures a sale, from the beginning to the end of the sales journey and that you make a lasting impression.”

When customers have a positive experience, they will be more likely to give your business a positive review, share their experience with others and return for a repeat sale. The cost of ‘upselling’ to an existing customer is significantly less than onboarding a new one and therefore it is a good idea to focus on building a loyal customer base in the years to come, he says.

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Look back at 2022

Now is a perfect opportunity to do a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis for your small business. Morobe says a SWOT analysis is one of the oldest and most tried-and-tested methods of ‘taking stock’.

“It involves mapping out the aspects of your business that work to your advantage, your strengths. This could be a unique product offering, exceptional after-sales service or an effective loyalty programme.”

Weaknesses will be anything that is currently standing in the way of your growth and could include factors such as an inefficient sales or invoicing process, outdated digital systems or poor team spirit. Opportunities are external factors and can include any gap in the market or well-timed marketing tactic that you could take proactively to grow your business, Morobe explains.

“Threats are also regarded as external factors and will include any aspects that may be standing in the way of expanding your business and could include more stringent regulations, rising material costs and changing consumer demands.”

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Look forward to 2023

One of the best ways you can gain the competitive edge in your market is to keep your finger on the pulse of latest developments and you should take time to research the emerging trends that shape the future of your sector, he says.

In the retail industry for example, more small businesses are finding ways to adapt to the global call for sustainable production and distribution. With changing consumer demands, ensuring that your operations are ‘cleaner’ and ‘greener,’ may very well be what you need to get ahead of your competitors in the new year. This trend can also be applied to the manufacturing sector.

“Another one of the most prominent trends in retail has been the move towards more efficiency and accessibility in the mobile payments space. 2023 may be the year that it makes sense for you to invest in a payment app, a digital wallet system, a buy-now-pay-later option or a QR code payment system to add a new level of convenience to your offering, with the main aim of keeping your cashflow looking healthy.”

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Review your business plan

One of the first things you should master as an entrepreneur is how to write a detailed business plan. You may do this to keep written detail of future plans, onboard a business partner, apply for business funding or pitch your idea to a potential investor.

Already done that? However, Morobe says, your business plan should not be left to stagnate once you achieved your end goal. “Look back at your business plan and review your strategy and goals. Assess whether your forecasting has been accurate, make adjustments for market fluctuations, find ways to maximise your bottom-line and keep an eye out for any over-spending.”