Almost every entrepreneur has heard the gloomy statistic, which says that more than 96% of businesses fail in the first ten years of their existence. There are many contributing factors that push companies towards bankruptcy and liquidation, but there is also one thing in common for all failed businesses. They haven’t been able to adapt to the new market and tech trends. In this article, we’ll share the list of the most popular business trends for 2017. These trends bring great opportunities, but they also represent emerging risks that can threaten your business, and eventually bury it under the pile of bad debt.
Quality instead of quantity
Commerce, just for the sake of it, is no longer acceptable in the business world. There’s too much competition for all business niches, and entrepreneurs and their teams need to show outstanding expertise and commitment to appeal to the consumers. Companies that fail to adapt to this trend, and continue to sell massively produced, poor-quality products and provide mediocre services, will have a much smaller market share in the future. They’ll be overshadowed by other corporate entities that constantly update their offer and improve the quality of their products and services.
The only way for small companies to compete with the big corporate players is to unite and share infrastructure and business systems. We-Commerce is the new trend that will reshape the small business market and force solopreneurs to partner with each other and share their resources. Of course, there are many lone business rangers, who don’t want to collaborate with other small companies. In the future, both quality and quantity of their products and services will plunder because they won’t be able to use the advanced infrastructure that can only be financed by collaborative effort.
Importance of customer service
The customer service is going to play a much more important role in business development. Since it establishes a direct contact between consumers and company representatives, CS enables companies to win over new customers without expensive campaigns and comprehensive marketing analytics. Customer service tech is also advancing very fast. Big companies already use chatbots to answer every customer request. Small businesses that don’t change their CS approach and continue using the old methods will drive away their customers and destroy their reputation.
Online lending is both opportunity and a major risk, especially for unwary borrowers. The market is currently entering the online lending renaissance. Online lenders offer faster application processes and better cash arrangements. Unfortunately, these lenders aren’t regulated in the same way as traditional banks, so their loans usually come with unclearly stated terms. Unsophisticated borrowers, especially from the small business sphere can end up paying from 30% to 80% in fees and interest if they don’t thoroughly check the terms and lender’s history. On the other hand, this type of lending pressures big banks to provide better deals to SMEs, so we can also view it as a positive trend.
Layoffs caused by business automation
Most entrepreneurs consider business automation as a positive trend and a great opportunity for improving their enterprise. Unfortunately, this process hides a catch that can easily destroy small company’s credit. One of the most important goals of business automation is to simplify business operations and cut companies’ costs. Automating main business processes will enable entrepreneurs to lay off one part of their team. These layoffs can cause a discrimination lawsuit storm, which will take a lot of entrepreneurs’ time and money. Companies that plan to fire a large portion of their team due to automation should maintain contact with offices that provide litigation support services, in case some of the ex-employees file a lawsuit.
Following the latest business, marketing and tech trends is a very important task for entrepreneurs in all industries. Business procedures should change and follow the company’s growth. Unfortunately, many entrepreneurs get lulled to sleep by the lack of competition and the constant customer and cash flow. Even market leaders need to compete, and if they don’t follow the latest trends, their offer will quickly become outdated and plain. This will allow their competitors to outplay them and grab a big part of their customer base. If you don’t want this to happen to your company, get informed and start updating your business for the future market.
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