Change is inevitable in business. However, the global pandemic drastically changed our lives and how we worked in ways we didn’t expect. As a result, companies had to learn to adapt and be flexible in such volatile environments three years ago.
Now that there’s another year fast approaching, they’ll have to face new challenges. New business trends will test their ability to survive in these competitive markets. The only way to guarantee survival is by preparing.
If you want your company to thrive in 2023, you’ve come to the right place. This blog will discuss the emerging business trends entrepreneurs like yourself should watch out for.
Four Growing Business Trends
Out of all the market trends businesses are seeing today, there are important topics they need to pay close attention to.
Rising Interest Rates
With another recession looming, the Federal Reserve raised interest rates four times last year. According to experts, it’ll continue to increase until 2023, even if inflation rates decrease.
Federal Reserve chair Jerome Powell says lower rates aren’t possible until 2024. Even then, there’s no guarantee it’ll happen. It all depends on whether or not the country’s economic conditions improve.
How do rising interest rates affect companies? The added costs discourage them from making new investments. Most of them will reduce spending out of fear of gaining losses. However, this risk-averse attitude can prevent them from growing. As a result, they must find new approaches to lessen their tax burdens for long-term growth.
For instance, they can convert their startup’s tax treatments. If you have a C corporation, you can change your tax treatment to an S corporation if you fit the IRS’ requirements. Since S-corporations are considered pass-through entities, they don’t have to pay corporate income taxes.
Instead, their tax items flow through their shareholders. This tax treatment would mean plenty of savings for growing startups. The more resources they have, the more they can spend on new investments.
Data analytics is one of the many hot topics in business today. It has allowed companies to stay ahead of the curve by providing insights into new revenue opportunities and ideas for improving their overall performance.
In recent years, AI has improved the way people can interpret their data. As a result, businesses can now predict what to expect in the future through predictive analytics. This feature looks for data patterns for accurate forecasts on various topics, including customer buying behavior.
By giving you a clear picture of emerging business trends, the feature allows you to make wiser decisions and prepares you for the future.
And though most people assume data analytics can be expensive, you can always start small. You can use basic platforms, like Google Analytics, to collect insights on your startup’s performance. Once you get the hang of things, you can then start exploring more extensive and advanced tools for data analytics.
Increase in Entrepreneurial Activities
Not only did the pandemic result in plenty of layoffs nationwide, but it also kickstarted the great resignation.
According to recent reports, more than 4 million Americans quit their jobs in 2022. At the same time, over 2.5 million businesses were registered. This trend shows that more and more Americans are taking the risk of starting their own business.
However, increased entrepreneurial activities would mean more competition. Startups would have to work harder, especially since 20% of new businesses fail within their first two years.
Normalizing Hybrid Work
Despite the popularity of remote work between 2020 and 2021, only some were happy with their new setup. For example, sales development representatives and newly graduated recruits required more direct in-person management supervision, in addition to the fellowship and collaboration fostered by being around colleagues and teams.
On the other hand, roles in engineering, communications, and product development proved successful in a remote working model. The McKinsey Global Institute estimates that more than 20 percent of the global workforce could work most of its time away from the traditional office—and be just as effective.
As a result, businesses began moving from a remote work model to a hybrid virtual model that combines some time in the office with remote work. The hybrid model introduces greater flexibility where employees can work anywhere they want to while guaranteeing face-to-face communication between employees.
This growing trend can keep everyone at work happy and productive when done correctly. Your people will have more time for their families, and you can still contact them whenever necessary.
Start The Year Right With NCH
Kickstarting your business in 2023 can be intimidating, but you can always find help in NCH. NCH is one of Nevada’s leading business formation service providers.
With the help of our business specialists, you can focus on today’s growing trends. Our team will help you file all the documents you need to incorporate your startup in Nevada, one of the country’s most business-friendly states.
And if you need help determining which legal entity is right for your business, we’ll guide you through the process. NCH will help you explore whether or not LLC is the best entity for your business.
Start the year right and visit NCH’s website here.