A Horror Story: Facing Your Business Finance Monsters in 2023

Author
Vladislav Podolyako
Published
Jan 04, 2023
Reading duration
10 min

Last year has been challenging and transforming for almost all businesses. The global business scene was filled with various obstacles and pitfalls, and financial stability stays among the scariest monsters to deal with. A paradox, however, this article is not to scare you. There is a great saying: If you name your fears, they become not so frightening. 

Planning ahead, even in uncertain times, is still possible. Even more, it now became a key to staying afloat. So, as the chill of the unknown runs down your spine, our devout experts will share with you a list of potential world crises that may hit as the first quarter of 2023 approaches. 

With those predictions and a few tips on managing them, you will grow your company despite unfavorable conditions. Only those who are prepared for what the new day may bring will succeed and leave every competitor behind. Are you ready? πŸ’ͺ 

General Worldwide Crisis Predictions

2020 was the turning point for many businesses and companies. However, as some brands couldn't manage to deal with the modern-day conditions, others adopted, and in 2021, global growth reached 6%. It would be natural to assume that it keeps growing since the pandemic is primarily behind us. 

Yet, the figures don't lie, and global growth is slowing. 2022 shows 3.2%, and in 2023 it is expected to drop to as low as 2.7%. It does not seem like a good time to start or develop your business, does it? Try not to make rash decisions, however!

According to the Central Bank calculations and other economic surveys, the US economy may go into recession in 2023. Thus, inflation rates will only keep growing. As a natural outcome of growing inflation, the Federal Reserve aims to tighten the monetary policy so that interest rates will continue growing. The interest field is claimed to experience changes only by the beginning of 2024.

Finally, our world seems to stand on the brink of global war, and the line between "highly unlikely" and "possible" escalation becomes thinner by the day.

Obstacles Companies Are Likely to Face in 2023 (And Some Solutions)

The intricate lace of financial stats and economic predictions may poorly describe what to expect in the marketing field, theory aside. There is a list of more or less real problems that each business could face in 2023.

Urgent need for the optimization of costs

As inflation spreads, many economies will face undoubtful stagnation and shrinkage. 76% of decision-makers in large businesses identified increasing costs as the greatest risk to their business in 2023. You must be ready to embrace the conditions. How do you manage those? 

βœ”οΈ Solutions: The best and the most advised route to take would be to establish a transparent and constant audit of how much your company invests into the business process, market functioning, cost category, and various involved units. Besides, cutting on some expenses may be a wise idea too. Some ideas to consider are using domestic sources, reviewing energy use, and outsourcing more efficiently. Also, pay attention to the daily tools you use. There’re high chances some of them don’t bring you value anymore as it was before. Consider available tools on the market — you’re likely to discover more modernized and cost-effective solutions that can fit your needs.

Supply chain disruptions

COVID has triggered many issues with supply chain security. However, present-day Russia's invasion of Ukraine, the Great Resignation, and involved labor shortages have intensified the problem significantly. As more and more products become difficult to acquire, they grow in cost. Should you be willing to learn some current statistics – it is claimed that supply chain problems will lead to €920-billion loss in gross domestic product across the EU by 2023. Besides, more than half of decision-makers in big companies said they do not expect to return to a “normal” supply chain until the first half of 2024 or even later.

βœ”οΈ Solutions: Considering the state of affairs, you may want to save on over-ordering. Long-term recovery should become your number 1 priority in 2023. It’s also critical to source domestically whenever possible. Domestic supply is much more reliable than global ones, especially today.

Increased customer expectations 

Another potential obstacle on the road to building your marketing empire concerns increasing user expectations. Modern customers are becoming more and more demanding by the day. It is not enough to present your clientele with high-quality stock. One such expectation heading into 2023 is increasing demand for sustainability. The rise of conscious consumers is likely to keep growing.

βœ”οΈ Solutions: Most online businesses are expected to adopt Extended Reality means, allowing clients to try on makeup, clothes, and other products online as though they were in a brick-and-mortar store. One of the primary business aims to focus on in 2023 would be transforming mundane interactions into unforgettable experiences. Besides, you can tap into the trend of conscious consumers by concentrating on their own values and communication. Showcasing how you change and update obsolete and potentially polluting approaches to manufacturing will help your client base grow despite any economic crises. As a bonus, polishing your company's sustainability will help you spot additional ways of cutting production costs as well.

Fast-developing digital transformation

70% of companies expect a spending boost in this area in 2023. The toll of AI (Artificial Intelligence) is more ponderable than ever, and it will keep growing as 2023 knocks on your doors. Throw in 5G, blockchain, the Internet of Things (IoT), and the cloud to the mix, and you will get a pure technological boom.

βœ”οΈ Solutions: To keep up with the innovations, it helps to imagine your business as a tech business, even if your field of expertise is as far from it as possible. Industry experts advise that you seek fresh solutions and opportunities to update your business flow. Don't forget that every person involved with the sales process should be equally trained and experienced in every modernization unit you choose to exploit. A trend of investment in digital transformation should become one of the keys to your business's survival.

Growing rates of the War for Talent

Constant technological development leads to a shortage of people well-trained in each sphere. Thus, every company will fight against another to win over the best experts in the industry. Such an approach leads to the notion that has already been christened the War for Talent

βœ”οΈ Solutions: The easiest way to get ahead of the chase is to offer the best working conditions. Yet, as simple as it sounds, so challenging it will be. Ensure your team understands how their work directly contributes to the company's mission. Regular direct conversations with your employees and open feedback culture will also secure lower turnover and that everyone stays on the same page.

Data security

Cybercrime rates grow faster than anyone would like them to. In 2022, there were more than 400 thousands reported cases of cybersecurity incidents. Scams and phishing are the main reasons people lose their digital data, leading to the loss of sensitive information and personal belongings. A brand that does not care about clients' security is as good as non-existing. 

βœ”οΈ Solutions: Implementing data backups, inspecting recovery processes, and vulnerability scanning should be on your to-do list as 2023 hits. Having a secure online checkout can also significantly reduce the chances of a data leak or loss of money while giving you greater control.

Improving the Revenue from Each Marketing Channel

Every channel you use to reach your client base is an income-oriented marketing tool. While these channels are more than a few, each requires a well-thought approach to provide a good Return on Investment (ROI). It may be a good idea to explore all potential venues in 2023 to get ahead of the competition and spike your company's income. πŸ‘‰ You may want to focus on the following channels:

  • Email marketing – cold emails and newsletters are the top of primary means success-programmed marketers claim to use in 2023. Cold emails will help you spike brand awareness among the targeted audience and increase potential income correspondingly. Besides, most email marketing campaigns can be skillfully automated so that you can center your attention on the content while a dedicated tool does the "dirty" tech work.
  • Social media – according to a recent survey, there are as many as 4.74 billion users globally. Reaching out to such a vast consumer base can spike your revenue significantly. Yet again – it takes quality content and a timely approach to convert leads.
  • Blogs and websites – given marketing channels offer more than a single advantage to consider. As visitors engage with your website and read through the blog, the traffic rates will grow. Along with traffic will increase brand awareness and lead conversion. Moreover, a well-presented blog and website will establish your authority in the industry. 

Now, let’s review one of the great examples of how one of the marketing channels, email marketing, can be optimized with effective cold outreach.

Optimizing Revenue Channels: Cold Email Outreach Strategy

Email marketing will continue thriving throughout 2023. That is why it’s reasonable to implement the marketing strategy among the existing approaches. Before you do that, let’s review the power of cold emailing: 

  • Reach targeted clients’ inboxes. Cold emails find potential clients right where they spend most of their time – their inboxes. In case you didn't know – an average adult checks their inbox at least twice a day.
  • Increase the chance of being noticed. Cold emails are persistent – they will remain right in the inbox until deleted, so there is little chance of going unnoticed.
  • Attract new prospects. Cold emails attract free leads – as people learn about your brand, they may want to convert and become regular consumers shortly after.
  • Scale outreach with digital tools. Cold emails are scalable – you can reach as many clients a day as you want, and process automation sees to that.
  • Send personalized content. Cold emails are appealing – if you approach the content creation process with all the required attention and dedication, your cold email templates will serve as a treat to readers' eyes so that they become potentially inclined to buy from you or at least visit your website.

These benefits are just the tip of the cold emailing iceberg. In case you want to get ahead of the competition and watch your revenue rates grow, you should concentrate on solving more pressing matters, such as attractive and valuable message content.

❗️ What you need to remember — sending cold emails should not cost you a fortune since it is not a premium option but a day-to-day task. And, luckily, there’re also emerging and cost-effective tools helping with this task, and the choice is likely to increase. Reconsider how you can optimize your costs spent on workflow by canceling subscriptions to what can be done for free (or minimal wage) and spending costs on more comprehensive solutions like Folderly that can help with complex and intellectual tasks.  

Wrapping Up

Forewarned is forearmed. Yet, with all these dire crises in sight, it is challenging to see the light at the end of the tunnel. However, you must know that the ongoing digital transformation will bring productivity growth in 2023. Yet, nobody knows for sure what will happen in the upcoming year — and shared predictions are just theories. As the old saying goes – lock three economists in one room, and you will get four opinions. But nothing is impossible if you have a good marketing strategy in mind!

πŸ“ So, take this checklist with the points discussed above to stay afloat in the upcoming year: 

Overcoming Financial Obstacles in 2023 Checklist


Costs optimization

☐ Review your energy use
☐ Outsource more efficiently
☐
Choose modernized and cost-effective solutions

Managing supply chain 

☐ Prioritize domestic supply whenever possible 
☐ Approach ordering smartly

Meeting customers’ expectations

☐ Transform mundane interactions into unforgettable experiences
☐ Tap into the trend of conscious consumers 
☐ Polish your company's sustainability 

Digital transformations

☐ Ensure ongoing training of every person involved
☐ Invest regularly in digital transformation 
☐ Look for trends and stay up-to-date

War for Talents

☐ Offer the best working conditions
☐ Ensure your all team members understand their roles
☐ Organize regular direct conversations with your employees 
☐ Promote open feedback culture 

Data Security

☐ Implement data backups
☐ Inspecting recovery processes and vulnerability scanning
☐ Have a secure online checkout

Vladislav Podolyako
Author:
Vladislav Podolyako
Founder & CEO
Vlad’s decades of entrepreneurial wisdom and business building experience have allowed him to successfully mentor a diverse group of business owners, entrepreneurs in growing their companies. A recognized expert in the areas of transforming organizational culture and leadership development, B2B Sales, Marketing, spent more than 10 years building technology products, with a background in communication networks and electronic device engineering.

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