Although 2017 was a volatile year
geopolitically, the business climate remained
positive with continued growth
in most sectors. Small businesses are
especially bullish with 52% of owners
expressing optimism for the next year,
according to Forbes magazine. A recent
survey by Microsoft Store found that
one-third of small businesses intend to
either hire 1 or 2 employees, start a new
marketing strategy, or give back to the
community. Here is our annual roundup
of what to expect for small and midsize
businesses in the coming year.
1. IOTAIML. The Internet of Things
(IoT), Artificial Intelligence (AI), and Machine Learning
(ML) dominated the technology landscape this past
year and will continue to work their way into many
aspects of daily business operations. From automated
responses to frequently asked questions to location-
based advertising, smaller companies can leverage
these technologies to increase their capacity and reach.
Monitoring industry websites and attending technology
events and conferences is key to identifying the
software and hardware products that will contribute
the most to the bottom line of your enterprise.
2. It’s Still about the Millennials. The generation
born between 1982 and 1996 has become the largest
age group, bypassing Baby Boomers and comprising almost
28% of the population. Consequently, the buying
and working habits of this group will continue to matter
greatly to retailers and employers. As consumers,
millennials crave experiences over luxury goods, are
drawn to personal interactions with their vendors, and
prefer businesses that are transparent and do good
over brand loyalty. These same qualities transfer to the
workplace where millennial employees look for feedback
and encouragement over compensation, and
focus and purpose over rank and titles. Small and
mid-size companies are often well positioned to attract
millennials by targeting these needs and highlighting
the local nature of their business.
3. But Watch out for Gen Z. Companies are already
focusing on Generation Z, the oldest of whom are now
in their late teens and make up about 25% of the U.S.
population. Gen Z communicates, buys, shares, and
finds everything it needs on its mobile devices, valuing
speed and access above all. This generation is risk
averse, having seen their parents struggle through the
great recession. Marketing to these consumers and potential
employees relies on hidden or incognito sites
such as Snapchat, especially sites that
their elders are not using. Start building
loyalty amongst Gen Z.
4. Distance or E-Learning. 2018 will
see a proliferation in new educational
platforms. Institutions ranging from
traditional universities to LinkedIn are
focusing their investments in the
online learning business. Younger workers
are opting for online certification
and credentials over traditional
degrees. Employers like being able to
retrain or up-skill their workforce
without the cost of a graduate education
and loss of employee time
during business hours. Businesses that focus on
supporting or enhancing the e-learning experience will
see more opportunities.
5. Health, Mental Wellness, and Financial Programs.
As employee stress increases, more businesses
are establishing programs to help their employees with
these issues. Larger companies, like PwC, offer 24/7
counseling services and a mental health toolkit. Mental
health is coming out of the shadows as employers recognize
its impact on the workforce. Companies are offering
debt restructuring services and financial courses
to employees in an attempt to help reduce stress from
those factors. Small businesses can offer these benefits
more cost effectively than large enterprises.
6. Be Prepared to be Hacked. It’s not if but when
you will be hacked according to most industry experts.
After Equifax, the prevailing wisdom is that any
business needs to be ready to have its website, internet
operation, and emails locked up or hijacked for some
period of time. Cybersecurity professionals indicate
that some sites may already have been hacked but will
not know about it for months or years until the adverse
party decides it’s the right time to cash in on their
actions. So the time is now for every company to
prepare for the inevitable by insuring and preparing
for a security breach, especially if their operations
involve the collection and storage of personally
identifiable information (PII), i.e. health data or social
security numbers.
Business Insights is hosted by the Law Firm of KPPB LAW (www.kppblaw.com).
Sonjui L. Kumar is a founding partner of KPPB LAW, practicing in the area of corporate law and governance.
Disclaimer: This article is for general information purposes only, and does not constitute legal, tax, or other professional advice.