HOW TO SURVIVE AND THRIVE AS A SMALL BUSINESS OWNER

Running a small business is no small feat. It’s a journey filled with uncertainties, challenges, and late-night pondering. As we navigate the ever-evolving business landscape, small business owners find themselves confronting a range of pressing concerns. Whether it’s the dynamics of returning to the office, the quest for top talent, or the transformation brought about by automation and AI, these challenges redefine the way our clients do business.

In this article, we will explore these pressing concerns and dive into scenarios that paint a vivid picture of the challenges faced by small business owners over the last six months. Additionally, we’ll highlight how PEOs are well-positioned to assist business owners in overcoming these obstacles to thrive in an increasingly competitive market.

THE CHALLENGE OF RETURNING TO THE OFFICE

The Concern: The return-to-office dilemma is a defining concern for small business owners. With the COVID-19 pandemic reshaping work dynamics, a fundamental question arises: Should employees return to the office or continue working remotely? The disconnect between employee productivity and the bottom line has prompted many employers to consider bringing their workforce back to the office. However, concerns linger about employee compliance and potential attrition.

Scenario: Imagine a small employer, XYZ Inc., that is grappling with the task of bringing its employees back into the office. These employees have been working remotely for the past few years and have grown accustomed to the flexibility of this arrangement. The business owner understands the resistance to change and the unease it may cause among the workforce. To address this, he or she creates a new classification and hires new employees, designating these new positions as “in-office” while allowing the existing class of employees to remain remote. However, this move inadvertently creates a division within the workforce, with implications for career growth and promotions.

This scenario exemplifies the complex challenge faced by small business owners in navigating the return-to-office issue. It emphasizes the importance of finding a balance between the desire to retain long-term staff and the necessity of aligning business needs with workforce culture.

FINDING TOP TALENT

The Concern: In today’s competitive job market, finding and retaining top talent is a paramount concern. Small business owners have encountered a shifting landscape where highly skilled professionals are actively seeking new opportunities due to layoffs and corporate restructuring. However, the salary misalignment resulting from the “great reshuffle” poses a unique challenge.

Scenario: Picture a marketing director who was hired in 2021 by a growing agency. She enjoyed a salary that was 20% above market rate, and her work was exceptionally fulfilling. However, in the 2nd quarter of 2023, the agency initiated mass layoffs as part of a restructuring effort to salvage the investment. Consequently, the marketing director finds herself in a predicament, as job opportunities now offer salaries significantly below her previous earnings. Moreover, she is competing for top positions with job seekers who possess advanced degrees and more extensive experience.

This scenario vividly illustrates how the job market landscape can rapidly shift, creating both opportunities and challenges for small business owners. It emphasizes the importance of staying competitive in attracting and retaining top talent in a dynamic job market.

EMBRACING AUTOMATION AND AI

The Concern: The adoption of automation and artificial intelligence (AI) is transforming industries across the board. Small business owners now have a new option to fill certain roles that have gone unfilled and underfilled since before the pandemic with the choice of embracing these technologies to enhance efficiency and reduce costs. In addition, the transition to automation can create workforce anxieties about job security and adapting to new technologies.

Scenario: Consider a small manufacturing business heavily reliant on manual labor for its production line. Even raising hourly wages, they struggle to fully staff all three shifts and struggle with turnover. The business owner recognizes the need to improve efficiency and reduce operational costs. After extensive research, the business owner decides to implement automation and AI solutions to handle repetitive and physically demanding tasks on the production floor. However, this transition raises concerns among the existing workforce. Some employees worry about losing their jobs to machines, while others are anxious about adapting to new technologies.

In response to these concerns, the business owner takes action to safeguard the company’s success. Training programs are introduced to help employees acquire new skills, ensuring that the business remains efficient and competitive. This approach shows a commitment to the business’s bottom line while adapting to market changes. This scenario highlights how small business owners must find a balance between using technology to boost profits and meeting the needs of their workforce. It shows that technology can improve the company’s overall survival.

PLANNING FOR 2024: MEETING THE CHALLENGES AHEAD

As many clients are currently shaping their 2024 strategic plans and grappling with the challenge of doing more with less, it’s evident that almost every expense category has seen an increase, making planning all the more crucial.

With an uncertain economic forecast for 2024, small business owners are navigating a multifaceted landscape filled with pressing concerns. These challenges encompass the return-to-office dynamics, the pursuit of top talent in a competitive market, and the transformative impact of automation and AI. While these concerns may seem daunting, PEOs, with their expertise and resources, offer invaluable support to business owners in tackling these challenges.

In the face of budget constraints, reduced workforce, and lower sales goals, our clients are strategizing and planning meticulously for 2024. These challenges require innovation, adaptability, and the right partnerships to thrive. As PEO operators, we are here to provide the essential support, resources, and expertise that our clients need to address these challenges effectively.

As small business owners continue to wrestle with these pressing concerns, they possess the opportunity to innovate, evolve, and thrive by implementing the right strategies and forming the right partnerships. With the road ahead marked by uncertainty and challenges, a well-developed plan for 2024—crafted in response to these concerns and solutions—can pave the way for small businesses not just to endure but to prosper in the years to come.