Owning your own business has been an important part of the American dream for decades. Many people dream of pursuing their passions and seeing the pride of a business they’ve built themselves.

That being said, owning your own business is far from all sunshine and roses.

Being a small business owner is hard, and 2022 is bringing with it a whole new set of challenges. Read on to learn about some of the small business challenges entrepreneurs can expect to face this year.

Supply Chain Delays

Of course, it should come as no surprise that one of the biggest challenges facing small business owners this year is supply chain shortages. There has been all manner of shortages for the last two years as the pandemic has thrown our world into chaos.

Resources have been redirected to fight the pandemic. Manufacturers have been unable to hit production targets due to COVID absences. And new trade regulations have slowed down imports.

Because certain materials and products have become harder to get hands on, their prices have gone up. Business owners may not be able to meet their own production goals or may be forced to raise prices on their products. It may also be impossible to get products that would normally be in high demand with your customer base.

Remote Work Setups

The pandemic has also left many small business owners trying to figure out how to manage remote work setups. These arrangements initially came as the result of nationwide lockdowns at the beginning of 2020. But demand for work-from-home setups has stayed high, especially with the onset of the Omicron variant.

Managing remote work setups may mean providing your employees with computer equipment, cameras, and so on. This can get expensive, especially for small business owners who are working on a tight budget. You may also need to set up team organization tools to keep up with the progress everyone in your group is making.

Less Foot Traffic

We’ve seen customer foot traffic decline drastically in the last few years, and that trend isn’t likely to stop in 2022. Although some people are returning to life as normal, many others are still choosing to stay home. If you’re a brick-and-mortar store, you may not be able to rely as much on foot traffic to get new customers in the door.

Less foot traffic has often meant a downturn in revenue for small business owners. But some entrepreneurs have gotten creative with how they keep business growth going.

Many restaurants have begun offering local delivery or curbside pickup. Some retail owners have added curbside pickup options, too. Other entrepreneurs have moved to online storefronts or have added digital offerings.

Sanitization Requirements

When you do get people into your brick-and-mortar store, there are a lot more factors to worry about these days. In addition to making a good impression, you have to decide on what level of safety measures you want to enforce. And in between each customer interaction, you may need to sanitize common areas.

The CDC still recommends everyone, vaccinated or unvaccinated, wear masks indoors to limit the spread of COVID-19. You may also decide to run fever checks at the door or ask customers to sanitize their hands upon entering. And it’s a good practice to wipe down checkout counters, door handles, display tables, and other high-touch areas about once an hour.

Labor Shortages

Labor shortages are one of the most persistent problems plaguing small business owners today. We’ve lost nearly 850,000 people to COVID in the last two years, which has taken a huge toll on the workforce. And oftentimes, employers find themselves shorthanded when their employees catch even mild forms of COVID-19 and have to be quarantined.

Other less scrupulous companies have also found that people aren’t willing to risk their lives for jobs that don’t even cover their basic expenses. If you’re having trouble attracting talented employees, it may be a good idea to take a look at your workplace policies and compensation. Many companies that have raised their starting pay have found themselves flooded with applicants.

More Technological Needs

Many small business owners have found that their technological needs are greater than ever before. In order to keep sales active, many entrepreneurs have had to launch e-commerce platforms. Others have upgraded their video setups in an attempt to create more engaging content for their followers.

Depending on what industry you work in, staying competitive may be a matter of having the latest and greatest in technology. New devices are faster, offer more features, and grab customer attention. It’s a good idea to look at the cost of upgrading to these devices and estimate how much extra business they’ll bring you before you decide to purchase.

Tighter Budgets

As the demand for newer technology increases, budget allowances are decreasing. Many of the factors we’ve already discussed have cut small business revenues significantly. Increased compensation costs for employees can cut revenues even more, and it can be hard to stay competitive and still make ends meet.

When managing a tighter budget, many small business owners find it helpful to think outside of the box. Expanding how you connect with customers and meet their needs can help you tap into new industry segments. And adjusting how you run your business can help you to trim some unnecessary expenses and free up space in your budget.

More Demand for Content Marketing

Social media marketing has completely transformed the face of small business marketing in the modern age. Not only is advertising much more affordable and accessible, but it can happen through more organic channels. And in recent years, customers have started to look for more content marketing from their favorite brands.

Consumers these days don’t want to hear a sales pitch; they want to get information that provides value to them. Starting a blog, a video channel, or a podcast is a great way to connect with your customers and establish yourself as an expert in the field. Once you’ve built a solid trust with your customers, you’ll be in a better position to convince them to buy your products.

More Calls for Sustainability

As the climate crisis has become more serious, consumers have started paying closer attention to the impact their purchases have on the environment. They want to make sure they’re buying from companies that make sustainability and ethical production a priority. For many small business owners, this had added another level of complexity to their operations.

Many entrepreneurs have started offering products made using sustainable and ethical practices.

They may focus on finding suppliers who harvest materials from sustainable sources. They might also consider changing manufacturing practices. Some are working to offset the climate impact of the shipping process.

As you work to make these changes, listen for feedback from your customer base about the issues they care most about.

Greater Focus on Work-Life Balance

In the midst of all these new challenges for 2022, one of the big struggles entrepreneurs face is establishing a good work-life balance. In the last few years, we’ve all become more aware of burnout and how much it impacts our lives. We’ve discovered that working 24/7 simply is not sustainable in the long run, and we need to find a better balance.

Creating positive work-life balance can mean delegating tasks to trusted employees. You may also need to set stricter business hours for yourself. It may mean turning off email notifications on your phone, prioritizing where you need to spend your time, and making self-care a priority.

Although this can seem like a challenge at first glance, over time, this balance will become one of your strongest assets as a business owner.

Learn to Handle Small Business Challenges

Being a small business owner has never been easy, but 2022 is bringing with it a whole new set of challenges. Entrepreneurs are carrying a heavier workload than ever before. Maintaining a strong work-life balance is key for any small business owner who wants to succeed this year.

If you’d like to learn more about small business challenges, check out the rest of our site at Hummel Group. We provide the benefits entrepreneurs need, including commercial insurance, financial services, and more. Get a quote from us now and discover how we can save you money with the insurance solutions you need.

As we settle into the new year, you may be taking a hard look at what your business will look like in the coming year. Staying up to date on the latest business tips and trends can help you to maintain an edge over your competitors. So what can you expect to see happening in the business world in 2022?

2022 small business trends will be dominated by continuing effects of the COVID-19 pandemic. Read on to discover the top trends to look out for this year and how you can use these to keep your business growth strong in the coming months.

Growth of E-Commerce

One of the biggest trends we’re going to see in 2022 is the continued growth of e-commerce. Although online shopping already had a lot of momentum, the pandemic pushed us into a world dominated by e-commerce. That trend is going to rise in 2022, and business owners need to be prepared to meet it.

If you don’t have one already, setting up an online store is a smart move for the coming year. Not only does this allow you to better connect with your local customers, it also gives you the chance to expand your customer base. And as we’ll discuss later, you should consider expanding sales onto social media platforms, in addition to on your website.

Increased Selling Through Social Media

Social media has become one of the best ways for businesses to advertise and reach new customer bases. But in the last couple of years, these networks have also become platforms for businesses to sell their products. Today, social media can be one of your most powerful tools for expanding your e-commerce reach.

Platforms like Facebook allow you to list products for sale directly through your page. Pinterest has also added a purchase feature, and Instagram has made it easier than ever to add store links to your posts. Make sure you’re taking advantage of as many of these opportunities as possible so you can expand your business reach.

Increased Alternative Pickup Options

The beginning of the pandemic also saw a rise in alternative pickup options for customers. Many restaurants started offering curbside delivery, and grocery stores ramped up their online pickup options. Retail stores also began offering curbside pickup as a way for customers to make purchases with less risk of exposure to COVID-19.

As we head into 2022, it’s a good idea to continue the alternative pickup options you’ve set up. People enjoy the convenience of curbside pickup and local delivery and may be more likely to buy from you if you offer these services. You may also brainstorm other creative pickup options to capture more audience attention.

Growing Foot Traffic

When the pandemic hit in March 2020 and lockdown orders went into effect, foot traffic came to a screeching halt for small businesses. People were staying home, and even businesses with premium locations weren’t getting many people in the door. Although we are far from out of the pandemic, we are starting to see a resurgence in foot traffic.

As people have gotten vaccinated, they’ve been able to expand their daily activities and start returning to some of their favorite shops. In 2022, you can expect to see more in-person shoppers in your store, and you’ll need to prepare accordingly. You might need to beef up your floor staff roster, and it’s a good idea to keep COVID safety measures in place to protect both your employees and your staff.

More Need for Strong SEO

While the rise of social media and digital marketing have made advertising more accessible, it has also opened up the field of competition. These days, getting customer attention can feel like trying to flag someone down across a football stadium. As of this writing, there are nearly two billion websites, and you have to find a way to get customers to yours.

Search engine optimization is a great way to grow your web traffic and bring new customers into your site. This technique uses the algorithms that power search engines to move your website to the top of search result listings. It will be more important than ever this year to make sure your site is following all the latest SEO guidelines.

Continued WFH Setups

Work-from-home setups are another growing sector that got accelerated by the pandemic. Although remote work had been getting more popular for years, almost all of us had to shift to work-from-home setups in 2020. While some people are beginning to return to in-person work, a lot of employees are pushing to stay on a remote work footing.

If you currently have employees working from home, it may be a good idea to assess how those setups are working for you. Do your employees want to stay remote, and if so, are you still able to achieve the same results you did before? Decide if you can continue this remote setup and, if so, how you can optimize it.

Rise of the Gig Economy

The gig economy is a new approach to a career that has gained a lot of traction in the last few years. People these days want the freedom and flexibility to set their own schedules, make money on their own terms, and pursue their passions. Gig jobs give them that opportunity and allow them to live more flexible lifestyles.

As a small business owner, you may be able to use the growth of the gig economy to your advantage. If there are jobs that don’t stay consistent year-round, job them out to a freelancer, rather than keeping a permanent employee in the position. You’ll save money and be able to recruit more talent to your company.

More Digital Communication with Customers

With everyone staying home and shopping online, it should come as no surprise that digital communication with customers is ramping up. People want to be able to get in touch with their favorite companies whenever they need them. And these days, people do not want to have to make a phone call to get the answers they need.

Social media has become a popular way for companies to communicate quickly and easily with their customers. If you receive a message from a customer, it’s important to respond as soon as you can. This helps to build your reputation with your customers and can earn you better ratings online.

Refocus on Customer Experience

In the years before the pandemic, many businesses got caught up in an arms race of efficiency. Everyone had to have the newest technology, the most cutting-edge techniques, and the latest and greatest in marketing. Somehow, the customer experience became secondary to having the newest and shiniest business tool.

But in the coming year, we’re going to see businesses returning their focus to the customer experience. Working to create a genuinely positive experience for your customers can get you a lot farther than flashing some state-of-the-art piece of equipment. Focus on content marketing, transparency, and creating genuine value for your customers.

More Demand for Personalized Products

As technology has developed, it has become easier for manufacturers to create one-of-a-kind products for their customers. They don’t have to set huge minimum orders or deal with cumbersome setup routines. Instead, they can be much more agile, creating just one or two specific products before moving on to a different design.

This development has ushered in an age of personalized product marketing. People want products that are made just for them, and personalized products can be a great way to make customers feel cared for. Something as simple as adding a name to a pre-existing product design can send your sales soaring.

Discover 2022 Small Business Trends

The pandemic has changed everything about our world, and our businesses are no exception. In 2022, we’ll see a lot of the effects of the pandemic still coming into play, from increased ecommerce to continued work-from-home setups. You need to plan to step up your social media selling, refocus on the customer experience, and offer more personalized products for your customers.

If you’d like to learn more about 2022 small business trends, check out the rest of our site at Hummel Group. We provide the benefits small business owners need, including personal insurance, health insurance, financial services, and more. Get a quote from us now and discover how we can save you money with the insurance solutions you need.