Tips for Small Business in 2022

Two months away from the pandemic’s second anniversary in the UK, Covid-19 is still causing havoc with small businesses - last month’s sudden disruption to the normal Christmas footfall was a rude reminder that we are by no means in the clear.

With such economic and social turmoil, it has been a time of deep reflection for many, including small business owners. Indeed, without the same budgets and commercial infrastructure of large corporations, local shops and starts ups have had to think differently to stay afloat, such as experimenting with new marketing strategies to re-engage customers.

The most notable of these strategies has been the adoption of e-commerce and an online presence, which has subsequently opened up opportunities for new markets, product development and hiring.

For most, these moves have been hugely successful, and will likely remain in place as business models adapt to society’s shift to on-demand service. However, there have been other noted changes that small businesses have made to protect their bottom-line. Here, we have compiled some of the most significant.

Digital Strategy

In the early days of the pandemic, the number of businesses opening online platforms each month tripled compared to the pre-March 2020 period, and the rate has stayed consistently high ever since.

The benefits of an online presence are obvious; along with enabling e-sales, as well as reducing physical contact, the growth of social media activity and electronic device usage over the past 18 months has meant the potential for small business’s online coverage is larger than ever. Nevertheless, investing in a website can be costly; the desire to have a nice homepage with lively digital assets can easily distract from a business plan that is otherwise sound.

Instead of throwing time and money liberally in the lengthy construction of a slick website, it is shrewd to focus attention on its more important aspects, like Search Engine Optimization, and producing quality, well-thought-out content and media posts that speak directly to your audience. However, while you should be careful to not overbudget your online platform, do not cut your IT budget – high speed service improves productivity and customer experience, while dated software and equipment can invite serious digital safety concerns.

Lastly, unlike large corporations, the added benefit available to small businesses in the online world is agility, as personalized strategies can quickly be drawn up in response to events or customer inquiry.

Money and Logistics

Speaking of digital additions to your small business, cashless checkout options, which have almost totally replaced the use of cash today, should be adopted if they haven’t already. Contactless card readers and mobile phone payment apps can save time, make your business more efficient and make life easier for your customers.

Alongside digital payments, small businesses should explore other ways of keeping cash flowing. Gift cards, vouchers, coupons and discounts, which also boost your brand awareness and offer future opportunities for growth, maintain a steady stream of income even without active sales. For the same reason, it is wise to emphasise postponements and credit in lieu of refunds, especially during times of bottlenecks and production delays, which 2021 made clear can be dramatic when they occur.

Additionally, it is important, during these times of crisis, to be transparent and manage people’s expectations as much as possible. Review events and warn your customers of supply issues and logistical delays.

Be prepared to deal with success also; some small businesses have seen interest skyrocket and have had to disappoint customers from not being able to meet demand.

Help

Although the wave of government loans and grants that kept small businesses afloat early during the pandemic are beginning to wind down, there are still subsidies available that can be used to capitalize on these new business trends. Check out Gov.UK to see what subsidies you are eligible for, or contact your local MP.

As 2021 illuminated to those thinking it would be a better year than 2020, 2022 will present its own obstacles, but small businesses can take heart and consolidate by adapting to these challenges as they arise.