The year 2022 has been full of business hurdles for many companies. Unfortunately, 2023 looks like more of the same.
Yes, business hurdles are stressful. However, knowing what to expect may lessen the blow. Especially if you have pre-planned for them. Here are three business hurdle areas that require special attention for the coming year.
The Staffing Hurdle
The Great Resignation is ending, and Quiet Quitting was probably more overblown than reality (nine-to-fivers and clock-watchers have always been part of the work environment). However, finding quality employees and managing payroll costs will still be challenging in 2023. Having a business plan and budget is a key part of understanding and controlling costs.
Also, be aware of any new employee laws and regulations that start in 2023. Consulting with an HR expert or Employment Law Attorney is important to avoid labor or employment actions.
The Inventory Hurdle
Supply chain issues are mostly ending for now, but are still fragile. The result has been many companies going from empty shelves to overflowing warehouses. Walking the line between liquidating current inventory and avoiding more empty shelves will be key to profitability in 2023. Knowing your sell and replenishment cycles is one of the KPIs (Key Performance Indicators) you need to focus on. And you need to be in regular contact with your suppliers to understand their cycles, too.
The Technology Hurdle
Cybersecurity remains a major concern. There was less publicity this year than the last several years, but hackers and scammers are still going full speed. The IT area is one where having an outside vendor, even if you have internal staff, can keep your company defended against these threats. An outside vendor brings in the knowledge that comes from seeing multiple varied situations every week, and as good as your IT staff is, it is hard to duplicate that knowledge when dealing with day-to-day issues.
Business owners need to keep your eyes up. Try to anticipate these business hurdles. This can be hard when you are trying to grow and manage daily operations. However being buried inside your business risks being blindsided by changing conditions. Using outside resources for some administrative operations and to access detailed reporting on your business can help relieve this crunch. Outside resources = outside views. Outside support in Finance, Legal, Human Resources, IT, and Marketing will avoid surprises and/or missteps. The outside support has the additional benefit of creating connections that can lead to new opportunities.
Randy Miller
As an Outsourced CFO, Randy brings over 35 years of experience to his work with privately held companies; building better organizations for growth; and maximizing value for a sale or re-capitalization. He specializes in strategic planning, organizational development, and accounting and finance management services for businesses. His passion is working with Owners/ CEOs/Presidents to maximize enterprise value by sharing his knowledge gained from working with start-ups, growth companies, and turnarounds for over thirty-five years. His role is to build the accounting and support functions to allow the owner to focus on the business, not the back office. Visit RMM Accounting.