Challenges Facing Businesses 2022
With an unusual last couple of years, new challenges and existing challenges are still there for businesses to consider. From the uncertainty of future working, changes in regulations and compliance, technology advancements, new customer relationship methods, increased cyber and security threats and remote working, it is important organisations find a new normal to combat these challenges.
- Uncertainty of the future
The likelihood of predicting customer trends is difficult, due to changing economic climate. A business needs to be able to read between the lines to ensure future success rather than anticipating downfall. The biggest example of this is the COVID-19 pandemic, whereby countless businesses had to change to remote working, some business prospered whilst some unfortunately didn’t.
2. Regulations and compliance
Rules and regulations change as markets/technologies shift. Businesses need to comply with changing rules and regulation in order to avoid pentiles for non-compliance. Unfortunate, changes in regulation do not always benefit businesses, i.e., increased costs due to environmental protection taxes can financially effect businesses within manufacturing and construction industries.
3. Finance and business resource management
Many businesses may be idea savvy but are less good at profit/loss cashflow. Sometimes bigger businesses bringing in larger profits, may look successful, whereas due to expenditure and expenses, large chunks of finance are being used up. Thus, these types of business in this situati0on can be susceptible to collapse or bankruptcy, with little contingency reserved funds.
A lot of businesses are benefiting from implementing and utilising financial software to help manage business finance.
4. Technology advancements and changes
Technology changes quickly and often, it is imperative that businesses adopt changes to prevent being left behind, it is important for new changes to integrate and implement new technology to keep up for example: software development, AI integration. It is no longer for the businesses companies to incorporate new technology methods such as chat bots, many smaller businesses are using technology to help identify trends etc.
5. Recruiting and hiring the right people
Hiring the right talent is difficult for organisations, with set standards and skills needed for an organisation. Recruiting also depends on the business size, thus, HR have to consider the staff needed for the business, whether full-time or part-time, temporary or permanent. With more elements to consider when hiring more challenges may follow.
6. Marketing and customer relationship management
Many customers now make decisions based on word-of-mouth and peer recommendations. Thus, unlike traditional marketing, where messages etc are communicated and important. Businesses have become more customer-orientated in almost all operations from marketing to product design and development. Moreover, businesses must make use of the relevant channels to communicate to potential customers. In relation to customer relationship management, businesses need to utilise different mediums to talk to customers, i.e. live chat features embedded on websites, quoting tools, data capture content, social media, emails etc. with an area for customers to give feedback
7. Evolving technology threats
Since March 2020, there has been an increase in security and cyber threats to businesses, especially with remote working still being done throughout the UK. With the UK being thrown into uncertainty and home working, even now becoming the norm, the necessary risk management factors may not have been properly implemented to protect employees and businesses. Whether via saving files to the cloud or phishing/whaling etc occurring.
8. Remote Working
When the world locked down back in March 2020, the vast majority of businesses had to find a way to allow their employees to work remotely. Although many businesses and employees have returned to the office, there are still plenty of businesses where working from home is now the norm, whether a hybrid of both office and home or just home. Some business owners are seeing the benefits of continued working from home or in the office. There has even been an increase in people opting to remote work, then in the office, thus, more remote jobs are being made.
