What can SMEs expect in 2023

There is no denying that every business, regardless of size or sector has a challenging year ahead of them, looking to balance growth through investment with rising costs.

In the past few weeks, we’ve been speaking with many of our customers and the industry and despite the gloomy headlines and unstable predictions, the general feeling for most businesses is that they are cautiously optimistic.  Most are looking to grow and ‘kick on’ in 2023 but are wary of the last couple of years and want to make sure they don’t do this too quickly or unsustainably.

In this article we discuss what opportunities and challenges 2023 might bring, and the integral role technology will play.

Taking control of cost

“This year cost reduction is not a greenfield site.  Many of the quick wins and tactical moves have been made and businesses must now commit to longer term and more complex strategies and unpause investments to progress.” KPMG

By far the biggest challenge is that of managing and better controlling their costs, with every single customer that we spoke to stating this is as their main area of focus.  The reality of a shrinking economy coupled with skyrocketing inflation, means that every business is looking at all costs that are within their control and making savings wherever possible.

“Our goal for 2023 is to continue to professionalise and offer a good quality of service to residents of Chipping Norton. The biggest challenge in the next 12 months will be meeting these needs with rising costs. Technology can help us be more efficient and effective in our role – enabling us to focus our time on public services and communications.” Chipping Norton Town Council.

Many are looking for finance models, such as subscription-based pricing, that are not only driving efficiencies, but also provide cost management predictability, which will eliminate any uncertainty, encourage growth and allow them to better manage and control their costs, whilst also offering the scalability and flexibility that every business needs.

“2023 is all about making the business efficient in how it uses technology; using it in a way that allows us to do more with less, regardless of what the resource is. We want to reduce inefficiencies, not by working our people harder, but by working smarter. This means using technology in a way that supports us and the work we do.” Connection Support.

High performing workplace

Remote, hybrid or office based, it’s apparent from many of our conversations and industry analysis, that 2023 is the year that the workplace must become more efficient.  With higher employee turnover and more burned-out employees that ever before, it seems the exponential changes over the last few years to how work gets done, isn’t sustainable as a model.

Businesses across the board all stated that they were looking for a more stable way of operating in today’s hybrid workplace, combining employee productivity with well-being and creating a more future-proofed, technology enabled model.  For many this involves focusing on optimising previous investments in technology and ensuring they have the right tools for the job, as well as providing a stable culture and work environment that both drives efficiencies, attracts talent and delivers the now expected work-life balance.

“It’s important to us to use the technology we have already invested in, such as Microsoft 365, more effectively so that we get a better return from our investment, allow our people to work the same from anywhere, as well as save on costs.”  Endpoint Ltd

Pursuing sustainability

Demonstrating sustainability and being environmentally accountable remains a priority for many businesses we talked to, with many reviewing their entire eco-system to build and implement tangible sustainability plans.

“Being in an industry that was heavily impacted by the COVID pandemic, and following a period of stabilising, we are now looking forward with plans to grow sustainably in 2023. This comes in a challenging environment with our business costs increasing, competition intensifying and price becoming such a key factor.” Aston & James

Driven in part by its relevance in the buying process, with preferable decisions being taken for those who are able to demonstrate it, for many they are also reaping the cost benefits of being more sustainable by using technology such as virtual collaboration tools.

Taking cyber seriously

It’s easy when trying to keep costs down, to think that the likelihood of a cyber attack happening to your business is low.  Despite every business digitally transforming over the last few years, unfortunately this is still the misconception of many businesses, with very few investing in keeping their data and systems secure.

“43% of cyber-attacks are aimed at small businesses, but only 14% have taken the necessary measures to defend themselves.” Forbes

It should come as no surprise that cyber criminals are taking advantage of this, resulting in a significant and continued rise in targeted ransomware and cyber-attacks.   Many businesses we spoke to stated that this in part is due to a lack of knowledge in this area, finding it an overwhelming and highly complex area to budget for and manage.  It is an area that requires expert help and if left unattended could have severe consequences.

Final words

It’s apparent that for every business, 2023 will be a period spent closely managing spend vs return and reviewing every aspect of the eco-system to see where adjustments and investments can be made to increase efficiencies and drive growth.

In today’s modern workplace, businesses need to be agile, flexible, scalable and secure.  Any solution or required investment must be able to offer this.

“Like every other business, we understand the pressures of managing costs whilst driving business growth.  We’re all working in unpredictable times and as a result it’s important to provide our customers with solutions that are fully flexible, agile and cost effective.” Saul Branch – Operations Director STL

 

The integral role of technology in helping achieve these goals is undeniable, whether that’s to collaborate better with people and customers, secure data, monitor and drive productivity, deliver a seamless customer experience or ensure you’re always connected.  Achieving this whilst reducing costs, increasing efficiency and future-proofing your business? Even better.

STL, part of Focus Group delivers all your essential business technology in one place.