Small and midsized businesses (SMBs) have faced extraordinary challenges since the onset of the pandemic in 2020. That trend continues in 2023 and likely beyond. But where there are challenges, there are also opportunities. To follow are some of the small business challenges affecting SMBs today, along with tips to help alleviate the pain points.

1. Inflation and supply chain delays

One of the biggest challenges facing SMBs is battling inflation and how it’s impacting supply chain. According to the U.S. Bureau of Labor Statistics, inflation was at 6.5% at the beginning of 2023, with an average rate of 8.15%. That, along with the Federal Reserve raising interest rates, has caused many businesses to raise the price of their goods or services. In addition, rising fuel costs and continued supply chain delays are adding to the expense of doing business.

But there are ways to combat the problem. Take a step back and return to your entrepreneurial roots; you may discover a way to reinvent yourself or an angle that may lead to innovative ways to do business. Supply chain issues wreaking havoc? Consider reducing inventory on hand or modifying what you carry. Better yet, seek out local or regional suppliers. Another approach is to review your business model to see if there are alterations you can make to accommodate the new economic world.

2. Keeping up with technological advances

While larger businesses have fully embraced digital evolution, SMBs have been less inclined to do so, primarily because of cost. However, understanding and researching the technologies available is important, as there are options that will promote growth without breaking your budget.

In fact, having certain technologies work for you is well worth the investment. For example, a robust email platform can help develop personalized relationships with current and potential customers. Migrating to the cloud provides an array of benefits, from increased flexibility, reduced costs, scalability, and the ability to innovate faster.

Lastly, search engine optimization (SEO) gives your website much-needed visibility. The benefits of SEO? To name just a few, more customer traffic through organic search, improved brand awareness, and best of all, it can be done on a budget.

3. Protecting your data

With the adoption of technology comes the need for cybersecurity. You will be accumulating data on your customers and their purchasing habits. Investing in data protection is not only wise for your business, but it also assures your customers that their data is safe with you.

A practical first step toward protection is to install antivirus and malware software on your machines. Other steps: Ensure your Wi-Fi is secure, use strong passwords, be wary of suspicious emails, and take extra care when working remote.

Having defensive layers and device protections in place are important, as is regular backup of all critical data. Consider the 3-2-1 strategy for data protection: Have 3 copies of your data, backed up on 2 different methods, and storing 1 copy offsite for disaster recovery.

4. Customer satisfaction and retention

Your satisfied customers are return customers. They are also the best word-of-mouth advertising you can get, bringing new customers to your business. But the pandemic dramatically shifted the way of doing business. Keeping loyal customers satisfied now might mean adopting an omnichannel approach, one that delivers a fully integrated experience. Explore varied touchpoints: your website, an app, Instagram, Amazon, or any other social media that puts your business out there. And be sure whatever platform you choose is mobile friendly. For those with brick-and-mortar, continuing to provide such customer-friendly conveniences as ordering online for curb-side pickup.

Also, it’s important to keep an open dialogue with your customers. If you want to know what they think of your website, what they want from your business, even suggestions to improve your business, ask them. It’s one of the best ways to get useful feedback.

5. Recruiting and retaining talent

Attracting and retaining top experienced talent will continue to be a challenge as the job market remains competitive. Look for new ways to recruit talent to increase your scope. Consider scouting diverse candidates through online recruitment and college campuses. Having employees from various backgrounds and cultures creates a vision of your business as a fair employer.

Employee retention has reached a critical stage post-pandemic. Workers might be reluctant to return to in-person work. Consider the options of hybrid vs. remote and keep the lines of communication open between you and your employees.

In addition, small things can go a long way in the workplace. For example, treat your employees with respect and appreciation; encourage feedback and input; offer growth opportunities; and provide flexibility.

6. Creating company culture

Hand in hand with talent acquisition and retention is your company’s culture. While often overlooked, a healthy company culture is critical to a business’s success. Top talent often seeks out a company based on its culture. A good company culture is one that fosters innovation and collaboration, and encourages communication and trust between employees. And as with employee retention, the little things count. Provide a comfortable workplace, ensure leaders are accessible, celebrate wins, and foster a diverse environment.

If your company has adopted a hybrid or fully remote work environment, you will need to up the interaction among your employees. Keep in touch through technology. Meet often to keep employees informed and ask for their input and thoughts. Encourage social interaction by hosting virtual social hours or video chats. The possibilities are endless to keep everyone engaged and motivated.

7. Addressing environmental concerns

Good for the planet. Good for your business. Expected by customers.

Many people are embracing a more sustainable lifestyle. Whether driven by economic challenges or environmental concerns, this is an area that should not be overlooked. Approaches to “greening” your business:

• Biodegradable packaging
• Buying eco-friendly supplies for the office
• Recycling
• Water conservation
• Renewable energy
• Investing in green projects
• Commit to ethical work practices

By incorporating the three pillars of sustainability (environmental, economic, and social responsibility) into your business, you could potentially attract a wider client base, thereby giving a boost to your bottom line.

The small business challenges currently facing SMBs today do not need to be obstacles. Have the mindset that the challenges are opportunities and apply a few outside-the-box strategies, and your business will be poised for success.

Melanie Zimmerman is a contributing writer at Quill.