by Stephen Reed | Accounting News, Business Growth, News
Whether anticipated or unexpected, small businesses in every industry face a lot of challenges. Both veteran and new businesses need to be prepared, flexible, and adaptable in order to succeed. Here are the most significant business challenges in 2023.
Economic Uncertainty
The economy has been wavering for some time now, and it appears that we’re on course for the same in 2023. This makes long-term planning a difficult task. When the economy is more balanced, business owners are equipped to make better investments and more informed decisions. However, with rising inflation, as we have now, small businesses face the possibility of stalled growth. It will be imperative for small businesses to budget costs and manage their operations efficiently.
Inflation and Rising Costs
Small businesses are not immune to the effects of inflation. Increasing costs of raw materials, shipping, and energy can all influence the profitability of a small business. Whereas larger companies might be able to pass these costs onto customers, small businesses typically don’t have the pricing power to do so. To attend to this challenge, small businesses may need to reduce costs through more efficient operations, renegotiating contracts with suppliers, or exploring new revenue streams.
Hiring and Retaining Labor
Most industries have experienced a labor shortage since the onset of the Covid-19 pandemic. The inability to find and retain qualified employees could impact the ability of small businesses to deliver goods and services or focus efforts on growth. Small business owners should think about offering more competitive wages and benefits, improving working conditions, and investing in automation to help reduce the work load of employees.
Competition
Competition isn’t a new challenge to small businesses, but the pandemic accelerated the shift toward e-commerce and digital channels. It’s now up to small businesses to find a way to stand out from the crowd in order to retain existing clients and attract new business. They might want to consider investing in digital marketing and advertising, improving their website and social media outreach, and offering products or services that set them apart from competitors.
Funding
Securing funding will be difficult this year as lending firms await to see what the economy does. On the positive side, this is an opportunity for small businesses to stand out among the competition. Business leaders will need to come up with creative pitches that prove the value their company offers.
by Stephen Reed | Accounting News, Industry - Retail & Distribution, News, Retail & Distribution
Both small and big companies have been impacted by the labor shortage that has spanned the country since the pandemic. A short-staffed company can lead to overworked and burnt-out employees, dissatisfied customers, and even a decline in sales. Below we’ll discuss how retail store owners can better retain employees and maximize operations among the “Great Resignation” era.
Provide Consistency, Flexibility, and Gratitude
Consistency is key. Statistically, more than half of the employees whose work hours are inconsistent end up quitting their jobs. A consistent schedule lends a sense of routine and security. Flexibility is also paramount to setting up employees for fulfillment in their roles. Whether this translates into something like more flexible meal breaks; or greater or more flexible time off; or a combination of these, employees want to succeed when they feel like their employers support them and their wellbeing. It follows, then, that employees will likely become frustrated if they’re being overworked when the company is short-staffed. To make sure the workers who go above and beyond know how valued they are, consider small gestures of gratitude such as providing free lunch.
Take Advantage of Your Online Outreach
When the pandemic hit, retailers had to pivot seemingly overnight to online channels. Though it might have been a bumpy transition in the beginning, by now retail businesses should have their websites and social media accounts working to their advantage. Strategies like buy online pick up in-store and curbside delivery offer convenience to customers while alleviating some of the grunt work for employees who are working understaffed shifts.
Prioritize Peak Days and Tasks
To make the most of payroll budgeting, you should be scheduling the bulk of employee hours during peak traffic days and scaling back your staff on less busy days. Not only does this balance scheduling, but it helps to avoid employee burn out and boredom. Too, having a clear understanding of tasks that take priority in your store — and relaying this prioritization to staff — will help to increase efficiency in store operations and provide task-oriented employees with purpose for their shifts. A proven strategy is the 80/20 rule, where workers and managers dedicate 80% of their time and energy to the 20% of work that takes top priority.
by Daniel Kittell | Accounting News, Business Growth, Construction, Industry - Construction, News
The construction industry has seen its fair share of challenges throughout the past two years as the pandemic surged, and the jury’s still out on 2022. The good news is that following technology trends can help withstand challenges and leverage ongoing opportunities for company growth.
Address Labor Shortage with Tech Tools
As with most industries in this post-pandemic climate, the construction industry is experiencing labor shortage, and there is no indication that this will change soon. One of the best investments builders and contractors can make right now is thorough training of valuable and promising workers so they’ll have the skills needed to thrive in the field. Think about equipping workers with new state-of-the-art technology tools — an investment that’s sure to reap rewards even as the industry fluctuates.
Look into Modular and Prefabricated Construction
Don’t overlook the modular construction market — it’s projected to reach $157 billion by next year. Offsite prefabrication and modular construction, where a structure is built offsite and delivered to the planned site, is trending upwards due to consistent quality and decrease in labor costs and construction time. Additionally, material waste has plagued the industry for some time, but this method addresses that inefficiency by recycling leftover materials.
Promote Teamwork with Collaboration Technology
In order to foster communication and coordination between office and field teams, think about implementing a workflow automation platform such as Fluix or Integrify. Swapping paper documents for digital construction forms and automated workflows helps to streamline the process while allowing teams to collaborate and oversee field documents.
Go Green
It’s no secret that reducing our collective carbon footprint is a trend with staying power, and the construction industry is not immune. Companies can be conscious of this by lowering operating costs, improving occupant health, and increasing occupancy rates.
Increase Jobsite Safety with Wearable Tech
Approximately 20% of worker fatalities in 2019 occurred in the construction industry. Suffice to say, safety is a trend. This includes construction technology and better safety equipment such as products with IoT connected sensors that are incorporated into wearables like safety vests and hard hats. These products help improve worker safety by alerting management to a worker’s location. Using wearable and embedded sensors can help prevent injury from falls, heavy machinery, and overexertion.
Automate Repetitive Tasks
Self-driving vehicles and drones can help accelerate the construction process by improving productivity and accuracy without risking job security. This automation process can take care of repetitive tasks while freeing workers to focus on specialized projects and individual responsibilities.
by Daniel Kittell | Accounting News, Construction, Industry - Construction, News, Uncategorized
Last year 35% of contractors reported turning down work due to skilled labor shortages. Couple this with a lack of resources due to supply chain issues and an industry that doesn’t seem to be slowing down, despite a short stall at the beginning of the pandemic, and construction firms are finding themselves in a position of putting the focus on running a more efficient business. Ultimately, this focus can help determine ways to save money or ways to reinvest in either hiring or retention and training. Read on for some strategies that will ultimately help you save time and money.
Provide Consistency
Consistency across the span of a project builds client trust and customer satisfaction, and building the importance of consistency into staff training can produce cost-effective results.
- Be sure your employees work by your company’s mission and core values. They should serve as touchstones throughout the duration of the project, whether anticipating customer expectations or meeting any unforeseen circumstances, including a shortage of staff.
- Hold on to returning customers by training employees to be responsive, helpful, and consistent with their answers.
- Employees who have the most interaction with customers should be trained in a way that provides consistency in addressing any questions and issues throughout the project. They should be proactive, empathetic to concerns, and solutions-oriented.
Prioritize Communication
As a business owner, if you feel that you lack the communication skills necessary to see a project through to the end, consider outsourcing a service to answer incoming calls. This can save time, and you can focus your energy on more pressing matters. Also think about establishing a company website as a means of interacting with current and potential clients. Use extensions like live chat, interest forms for gathering contact information, and online sales and specials to hook new customers and drive sales.
Invest in Software for Efficiency
Technology in the construction industry has the power to save time, improve workflow, attract skilled labor, and provide optimal customer service. Because efficiency in customer scheduling has proven to be a challenge for many construction firms, consider investing in software that focuses on customer and project management. Technology that can provide efficiency and capture project details can have a positive overall effect on your business.
Construction firms in today’s economy are faced with widespread labor shortage and supply chain issues, as well as skilled workers aging out of the workforce. This all culminates in an industry-wide lack of resources that is only growing. For an industry that is no stranger to labor turnover, focusing on consistency, time investment, and customer attention is paramount, and will allow you to run a more efficient operation and save money in the long run.
