Financial Trends For Small Businesses in 2023
It's a new year, and it's time to think about how technology will impact your business financials. There are some key trends that will reshape the way small businesses operate in 2023:
Digital Lending
Digital lending is a new way to borrow. It's cheaper, faster and more convenient than traditional lending. This means it can be used by small businesses to finance their operations as well as consumers who need a little extra money for big purchases like cars or home improvements.
In a nutshell, it is a way to access credit without having to go through a bank or other financial institution. Instead, it's administered by an online marketplace that connects borrowers with lenders. This means that small businesses can get access to capital at lower rates and under more flexible terms than traditional lenders offer.
Shared Economy
The shared economy is the way of life in which people are able to share resources with each other, rather than owning them individually. This system has been growing over the years due to technology and globalization, making it easier for individuals to rent or borrow items on demand from other people instead of buying them upfront.
It's possible that this trend will continue for some time. In fact, a recent report shows that almost half (45%) of American adults are partaking in the shared economy at least once a month.
This may sound new and exciting at first glance—but there are some things you should know before diving into this type of business model:
-Pros: You don't have to buy the item upfront, which means you save money. You also get access to a wider variety of products than if you were just using one type of service or renting from one company.
-Cons: It may be difficult to find good quality items at reasonable prices and it can be difficult to make sure that everything is safe for your customers.
Digital Wallets & Payments
A digital wallet is a secure virtual storage space for your money and data. Your digital wallet holds all of your financial information, including credit cards, debit cards, gift cards, rewards programs and more. Digital payments are the process of making purchases with your mobile device or computer. You can pay with credit card numbers or other stored payment methods such as PayPal or Venmo directly from within the app on a smartphone or laptop to make an immediate purchase at any time of day from anywhere in the world (assuming there’s internet).
Digital wallets have become increasingly popular for small businesses because they offer many advantages over traditional cash transactions:
They're easy to use—no need for cashiers!
They reduce theft since all purchases are authorized through fingerprint scans (or facial recognition if you have that feature enabled).
They're safer than carrying around large amounts of cash at one time since they'll only take out enough money when needed without worrying about getting mugged during commute home after work hours; no more keeping extra bills stashed away incase something unexpected happens last minute before payday... right?
eCommerce & mCommerce
It’s no secret that eCommerce and mCommerce (mobile commerce) is growing. It’s also no secret that mobile commerce is the fastest growing segment of digital sales. In fact, according to a recent report from Statista, global eCommerce sales reached $31 trillion in 2022—a 36% increase from 2017 (and projected to rise even further). But what does this mean for your small business? Here are a few trends you should be paying attention to:
Online retail sales will continue to grow but will plateau at around $8 trillion by 2023 as more shoppers opt for convenience and value over price-per-product;
Mobile commerce will continue its upward trajectory into 2021 when it surpasses 50% of total retail transactions;
Ecommerce will become bigger than just online shopping as brick-and-mortar retailers start offering services like installation or delivery through their online stores;
Ecommerce will be the go-to platform for both B2B and B2C businesses because it allows them to reach customers anywhere they choose whether they're shopping in person or online.
Big Data
Big data is the buzzword of the moment, but it’s also a big deal. Big Data is a big opportunity for small businesses to gain information (and financial leverage)that can be used to make better decisions in their business.
Big Data is also a big challenge for small businesses that don't have the tech skills or budget for proper data analysis tools, resulting in incomplete or inaccurate analysis. In 2023, Big Data will become even more prevalent as new technologies are developed and made available to small businesses at lower costs than before.
In the meantime, small businesses need to take advantage of the tools they have available now. This can include using Google Analytics to track visitors' online behavior and demographics, or using an app like Shopify to
manage inventory and sales data.
Wrapping Up
In conclusion, we can expect to see an increase in technological innovation over the next few years. This will help businesses streamline operations and save money in the long run. However, the biggest challenge for small businesses will be finding ways to adapt so they don't get left behind by their competitors who are able to adapt faster than them.
