2023 Small Business Predictions and Trends (and how to leverage the opportunities they bring)
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As you look ahead to business plans, hopes and dreams for 2023, what comes up for you?
With inflation, supply chain issues, recession fears looming, pandemic fatigue and burnout, your own mental health challenges and more, the future might still feel cloudy and uncertain at best.
Good news: you don’t have to do it alone.
Better news? Even with these challenges to navigate, the outlook for small businesses in 2023 is overall optimistic.
Here’s a look at what I see ahead for small businesses in 2023, complete with suggestions on how you can plan for and leverage these predictions in your business.
Note: as always, these ideas are not objective truths, but my opinion as a business strategist with her pulse on the small business world. The insights contained in this post are gathered from research, anecdotal experience and case studies from clients and peers, and my own wisdom after 8 years in the marketing space. Do not let any of this turn into a limiting belief about what you can or cannot do. Take what serves you, leave what doesn’t.
Evolution in the way influencers show up + succeed online. Those who feel more real and transparent will thrive over those who feel more staged and untouchable. This is a great example of where nuance is always relevant. Are there still people who are attracted to the influencer aesthetic and seduced by that lifestyle? Of course. But more and more people are tired of things that feel fake and contrived. Content creators and influencers are here to stay, but what it takes to succeed is shifting. To explore this in your work, take an audit of where (if anywhere) you rely on influencer-like tactics of leveraging beauty, wealth, privilege, or other lifestyle marketing strategies to generate sales and attention. Are there spaces where you’re doing something because of how it looks, instead of rooted in truth or your bigger why? If nothing else, stick with this simple idea: more real, less fake.
Less worshipping at the altar of internet gurus and social media fame, more valuing people and companies who provide real, quality products and services. Several books have come out in recent years that talk about how prevalent scamming has become in the internet age - and these scams are far more insidious than the email swindles of the past. Scams from online businesses who made big claims about results and promises for epic changes, but weren’t able to deliver. From MLM companies to influencers to false claims in every industry from coaching to marketing to beauty and beyond. It was once enough to have a large following, and the clout economy is still at play, but we’ll see more folks interested in the real results and receipts you can bring forward about your products or services.
More discretion with making purchases and investments as more people question consumer culture and, per the above, feel the burn from past experiences. This doesn’t mean we need to shift into scarcity fears or worry that we can’t make good money this year, because wow is there so much opportunity for your business to thrive this year. But as you make your marketing plans and decide how you’ll position your offers, consider the possibility that your people will be watching, reading and listening with a little more discretion. The opportunity here? Simply focus on the value proposition of your offer. How does it help someone, benefit them or change their reality? What feels easier, lighter, better, softer, more delicious once they have your product or service? Lean into those truths and create opportunities for your customers to understand and experience them, and you’ll see sales blossom.
Big opportunities for those who teach and offer healing support around money. As more folks wake up to the harms of consumer culture and the 🥴 of living in late stage capitalism, alongside stories about inflation and the price of milk and recession vibes will lead to lots of folks having their relationship with money top of mind. With that, we’ll probably see more people crop up who don’t have the expertise or skillsets necessary to effectively facilitate this work, so as a consumer this is a space to practice discernment. As a creator, it means you have the opportunity to highlight why you are an ideal facilitator, and shout that from the rooftops.
Price increases across the board; those who communicate clearly will thrive, those who don’t will not. The reality is that it’s more expensive to be alive for most people, and in many cases also more expensive to run your business, so prices need to take that into account. In fact, since I started researching and writing this piece, Shopify announced a roughly 33% increase in prices across all plans, which is just one example of rising business costs that will impact small businesses across industries. As some prices increase, we’ll also see greater interest in lower investment products and services that can provide similar benefits at a lower price point. Translation: you’re going to benefit by honoring the prices you need to charge for your higher end products and services, and from offering lower-priced options that are less expensive for you to deliver. Important note here: I see a lot of my clients struggle to increase their prices, with most of them not having thought about raising their prices in years. So here’s a gentle reminder that as your life changes, it’s valuable to look at your prices. Even if as a service provider it’s not more expensive for you to provide a service (I.e. you’re not paying more for shipping costs, increases in raw materials, etc.), your cost of living has likely gone up. And you are allowed to consider your needs and wants when you set your prices. If you want more on this be sure to follow me and subscribe to the podcast so you’ll see when my detailed pricing guide goes live.
Clear communication and breaking the power dynamic between creator and consumer; everyone is facing challenges as they move through the world, business owners and consumers alike, and there’s going to be more and more benefit to bringing honesty and openness into your business communications. Naming any challenges you're facing, increasing transparency around price increases, hour changes or other policies that impact customers is going to improve brand loyalty and strengthen the bond between you and your customers, which strengthens your business overall. This doesn’t mean you have to move into a space of divulging everything - your business community is not your therapist. But the more human you can be inside of your business (even if you’re not the face of your business), the better your business will do this year.
Evolution in content marketing, including the return of blogs, emails, and SEO based platforms like YouTube and podcasts. If you haven’t thought about the role long form content plays in your marketing strategy, it’s time to do so. Yes, video still works, and you can find success and growth on any platform that works for you and your business goals. But the same content strategies that thrived over the last few years aren’t going to work as well. People are exhausted by content that tells them too much all at once, and by the echo chambers of social media where so much content looks, feels and sounds the same. To stay ahead of the curve, go back to basics and identify your business goals and the ideal customer(s) you’re trying to reach. Then, allow form to follow function, and build a content strategy that’s going to get you in front of the right people on the right platforms that will allow your business to support them and in turn, lead to them supporting you. Yes, this is something I can help with in a Strategy Session.
Resurgence of love and support for small businesses. The small business love has remained present, but there’s no denying that behemoths like Amazon and Target will beat out your local book or beauty store when convenience comes to mind. But as people are more and more disturbed by the problematic standards and practices of larger companies, a deeper love for shopping small (especially with experiential and/or relational shopping experiences, which I’ll touch on below) will sink in. Big businesses may be able to deliver greater convenience, but they can’t compare to the customer service, relationship or experiences your small business can provide. To leverage this, it’s time to evaluate your client or customer processes. From their buyer’s journey to the moment after they first buy. How are you in relationship with them? How can you surprise and delight them? How can you make their experience excellent at every turn? Play in that space and you’re sure to see growth this year.
Desire for quality, unique shopping and buying experiences will continue to increase, meaning those who can provide experiential retail experiences have a tremendous opportunity to connect and deepen relationships with both new and existing customers. Since 2021, in-store shopping has progressively increased, with some folks citing the desire to discover new products, while others enjoy the ability to disconnect from the digital world and have a more social experience. If you’re running an online business, there are still ways you can leverage the desire for connection and experiential shopping. Can you set up a pop-up style event? Hold digital learning + shopping events? Ask yourself how you can create experience for your ideal customers, then test out your best ideas.
