With more than 30 million small businesses operating in the United States, small business owners need to stay on top of trends to keep ahead of the pack. These are eight ways small business is expected to change in 2021.
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Supply Chain Visibility
As global competition and economic uncertainty increase, it is more important than ever for small businesses to maintain supply chain visibility. Once thought to be unachievable, technology advancements have made the possibility of reaching 80-90% visibility an attainable goal in 2021. Modern visibility platforms provide real-time views and insights from production and distribution to suppliers and customers. This can help small businesses reduce supply chain blind spots, increase collaboration, anticipate disruptions and more quickly to respond to customers’ changing needs.
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Focus on User Reviews
Customers are increasingly focusing on what other customers think about products and services over factors such as product features and price. Research has found that as many as 92% of customers may consider not making a purchase based solely on negative or no reviews. It will be critical for small businesses to find ways to keep customers satisfied and motivate them to leave positive online reviews in 2021.
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Remote Work
The need for remote work was thrust upon the business world in 2020 and it is not going anywhere in 2021. This trend may be a boon for many small businesses that do not have the purchasing power to invest in large office spaces. Advances in video conferencing, expanded high-speed connectivity and other technologies will continue to make it easier for businesses to make remote work the norm.
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Mobile Communication Will Dominate
Workers in 2021 are tech-savvy and expect to be able to do their work from anywhere. Traditional forms of communication, such as emails, phone calls and intranet communication are rapidly becoming outdated. Today’s workforce prefers communication apps that are more engaging, productive and user friendly on a mobile device.
These apps help streamline communication, eliminate unnecessary emails and phone calls and provide a direct line of communication between managers and employees. Look for features such as surveys, live polls, suggestion boxes, newsletters, updates, announcements, employee recognition and employee directories.
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Gig Work Will Continue to Expand
In spite of efforts from activists to reclassify some gig workers as employees, the trend of gig work is expected to continue into 2021. Many small businesses do not have the resources to hire permanent employees for all of the jobs they need to be done. Gig workers can help fill those gaps. Additionally, many workers prefer the flexibility that comes with gig work.
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Focus on Nonmonetary Perks and Benefits
Employees in 2021 are expected to be less focused on traditional compensation packages, such as bonuses and 401(k) contributions and instead demand more perks such as flexible work hours, paternity leave and telework. Small businesses that want to compete for the best employees will need to be willing to get creative with compensation packages that match what employees want.
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E-commerce Will Continue To Grow
2020 saw a huge trend towards online shopping and that is expected to continue in 2021 and beyond with e-commerce projected to become a $5 trillion business by 2025. Small businesses will need to modernize their e-commerce platforms, invest in their social media presence and streamline shipping to compete.
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Green Businesses Will Thrive
Though other concerns have come to the forefront in 2020, the climate crisis has not gone away. Customers will continue to prefer small businesses that demonstrate a commitment to green practices. In addition to attracting customers, small businesses can save money by conserving energy, using sustainable materials and less packaging.
As the way, people live, work and shop changes, small businesses will need to shift their practices to match a changing customer base and workforce. The businesses that most successfully implement these and other trends in 2021 will have a leg up on the competition.
