As an international company that specializes in providing solutions to help businesses grow, we have the foresight to look ahead. We’ll update our clients and partners just like you on how to meet and beat the challenges that 2023 has in store for businesses.
Below are five daunting business challenges for 2023. Prepare and learn how to solve them.
1. The economic recession is changing business processes
When the economy slows down, business owners often rebalance their IT budget, making many provider companies worry about their demand cycles. The decline in demand for products and services jeopardizes the profitability of IT organizations and can make them put some projects on hold. This can be especially challenging for IT companies that rely heavily on just a few large clients or projects.
In addition, shrinking client budgets can make it difficult for IT companies to manage human resources the same as before. It also makes it increasingly tough for an IT business to innovate and stay competitive within a rapidly changing marketplace.
Pro Tip: discover untapped markets
To weather the 2023 business storm, Solvd focuses on finding and paying more attention to potential new and existing partners. Despite the turbulence and geopolitical impacts on the IT industry, there are more opportunities than risks when venturing into the unknown. You can leverage the high motivation of your specialists and your diversification strategies. It's vital to explore new markets and diversify revenue streams in order to minimize your exposure away from having just one single market.
2. Shifts in client behavior and acquisition
The global economic issues have unfortunately resulted in unstable customer loyalty. In addition, businesses face a wide range of enticing offers that are increasingly relying on automation for cheaper alternatives to bespoke solutions and services.
Likewise, customer expectations and behavior are changing rapidly. Customers are becoming more informed and now have higher expectations from brands. As a result, in 2023, it will take your business more effort than before to push users through the sales funnel.
Pro Tip: refresh your marketing strategy
You need to direct your design and marketing teams to focus on increasing your client’s business growth, help them launch new products faster, and plan new ways for them to gain a larger audience. If you wait too long to start adjusting your marketing strategies, you risk losing some business.
At Solvd, we stay aligned with the latest consumer trends: we help users save time and stop the scroll only for valuable content or offers. We realize that we only have a few seconds to snag user attention. So we keep our UI/UX design process and deliverables refined and clear.
3. Clients want services that exceed their expectations
During an economic downturn, businesses need to revisit their customer offerings while thinking about what they can provide that goes above and beyond customers’ expectations. Whether it's by adding new features, improving performance, or enhancing their user’s experience, offering more than the client’s expectations is a key facet of business growth during these lean times.
Pro Tip: stay realistic and stay united
You can stay united by setting clear and realistic goals, promoting unity and understanding, and improving communication and collaboration within your teams.
The Solvd team stays on the same page with its clients, and we never forget that our valued clients want IT providers to meet and sometimes exceed their needs and aspirations.
I set myself and my team the goal of delivering outstanding results for my client’s projects. Sometimes my work is being a crisis manager who can use a strategic mindset to optimize the QA and testing processes. And together with the team, we can then complete projects that are both on time and on budget.
For example, one of our clients, Under Armour, hired me as a single QA for their project. Soon I had to take the lead on analytics testing using E2E tests as one of the most powerful tools in the app development tool kit. Then I stepped up to mentor four QA teams, improving their skills on their e-commerce project. With adequate coordination and clear goals from the client and from my side, our team handled all the tasks and provided valuable QA support.
4. The digital transformation trend is accelerating
The world of technology is changing faster than ever before. AI-based solutions to business challenges are becoming an integral part of processes. They have already made it into every major industry and are strengthening the role of AI in the future of work. Other technologies like blockchain, cloud computing, 5G, data analysis, and the IoT are also contributing to further technological advancement. You need to keep up with these changes and tap into new opportunities in order to stay ahead of the competition.
Pro Tip: re-evaluate processes and adopt AI
Your organization might be at the start of or midway through its digital transformation journey. Either way, it’s wise to focus on automating risk management processes, optimizing routine operations, creating data analysis tools, and building engaging products. Revisit your business processes and make sure your employees have the relevant skills they need to work alongside today’s AI solutions.
Keep your organization in tune with the latest technologies, and you can count on investors' vested interest. In 2021, forward-looking companies got $93.5 billion from private investors. Plus, 67% of businesses who use AI have increased their revenues, and 79% of them have saved on production costs.
5. The race for talented professionals
As we move into 2023, companies will continue to face a talent shortage. The pandemic and geopolitical issues have caused many people to reconsider their jobs, resulting in mass resignations in various sectors. Another reason that many businesses have is their desire to cut budgets, put projects on hold, and review their employees’ skills. They're struggling to find qualified professionals that have the vital skills that are needed in today’s context and for the fourth industrial revolution.
Pro Tip: use training, retraining, and upskilling
One way your company can address this issue is by hiring recent graduates and training them in-house. It's also a must to prioritize re-skilling or upskilling your current workforce.
Now think about this year’s pressing economic and geo-political situation. You should consider cooperating with companies that focus on finding and cultivating highly motivated talent.
Besides, to attract top talent, your company should offer a working environment that stays aligned with the new work reality. This includes providing flexible opportunities for remote working, strengthening leadership, and promoting diversity in the workplace.
Frequently Asked Questions
What are the biggest challenges for most businesses?
Challenges in business may vary depending on a variety of factors like industry, size, location, and economic conditions. Some common challenges that many businesses face today include:
Shrinking Budgets and tight expense management
The need to embrace digital transformation
Retention of top talent
The need to exceed customer expectations
What are the 3 types of business concerns?
Every business should address these three main concerns:
Human resources. Businesses should be careful when managing employees, provide training and development, and create procedures to make sure employees can unlock their full potential.
The use of secure technology. It requires implementing policies, procedures, and technology to protect data and information systems from unauthorized access and modification.
Changing business environments. Businesses wishing to stay relevant must keep up with market trends, technology, and user preferences as they change accordingly.
With the right mindset, you can overcome the critical business challenges that lie ahead in 2023 and come out on top. Whether it's adapting to new tech, keeping up with changing consumer demands and increasing expectations, and facing budget constraints, you have the tools and solutions to the current business challenges. By staying flexible, creative, and committed to your goals, you can emerge stronger than ever and achieve new business milestones.