Most business leaders expect revenues to rise throughout 2022, despite serious challenges.
The COVID-19 pandemic is winding down, but still interrupting supply chains. Energy prices are increasing, partially because of the Russian-Ukrainian War. Inflation is rising, and taming it may involve some economic pain for everyone.
Yet despite all this, there is good news.
Growth is expected to continue. In fact, 95% of business leaders expect their revenues to increase or hold steady, while 88% expect profits to grow or hold steady, according to JP Morgan Chase & Co. economists. The best bet for small and midsize business owners is to focus on the following:
- Take a look at a new talent strategy. Many small and midsize companies are struggling to find and retain people. You may need a combination of outsourcing some business processes, engaging 1099 contractors or upgrading a benefits and salary strategy to attract high-quality talent.
- Stay optimistic. Economists expect the U.S. economy to grow 2.4% through the third and fourth quarters of 2022 — and they expect growth to continue (albeit slower) throughout 2023, around 1-4%. They key thing to remember is you’ll be operating in a growing economy.
- Supply chain problems continue to be rough, so you’ll need a risk mitigation strategy. The silver lining is this is an opportunity to see where you are vulnerable and where you need to source additional suppliers. (And on the business-growth side, where you can provide added value to your customers.)
- Monitor costs closely, especially the impact of inflation. Energy costs are skyrocketing, affecting the entire supply chain. The federal government is looking to raise interest rates to tame inflation, and they expect it will cause economic pain. Devise a plan to protect your margins.
The good news: Despite a lot of vivid rhetoric in the headlines (i.e., “shattered” supply chains), supply chains are operating and the economy is expected to continue growing. And rest assured, there are plenty of options in talent, cost control, supply chains and growth.
Enlist the experts at Magone & Co
With our forward-looking Business Advisory services, we can help you identify the levers that will most impact your growth and success. Contact us for a free consultation.