My predictions for 2023 & how you can survive it

Mar 16

So here we are, it’s 2023 if you can believe it! I feel like 2022 went in the blink of an eye, do you?

Let’s cut to the chase - 2022 has been hard. It started off ok in some respects, ads started to pick up, people starting spending a bit more money again but then before you knew it tragedy struck in the form of a war followed by a rise in fuel costs, the prices of literally everything else going through the roof and the resulting start of a recession. Throw in rising container costs, more covid, tightening purse strings, a change in Prime Minister - yes this is a whistle stop tour - but the result (amongst other things) was lots of small businesses closing.

But why?

Lots of businesses fell foul (often through no fault of their own) of investing in their businesses in the height of Covid when business was booming for lots. The problem with investing into your business when things are hugely inflated is that you’re riding on a wave and when it falls you’re really going to feel it, especially if the cash you’ve used to invest was generated by your business in the first place i.e. not an external investor (and even then the repayments can put pressure on you).

Now I’m not saying you shouldn’t invest, quite the opposite, but here’s where the problem can arise and one of the main problems is cash and the lack of it. As well as not knowing your numbers and making decisions blind.

Lots of businesses found themselves tied up in knots as costs increased, demand fell, getting the sale proved much harder and the need to discount without strategy ramped up.

It’s easy to see how margins were squeezed and injections of cash literally paid for debts or kept things afloat as profits dropped. Combined with the squeeze on lots of business owners trying to keep their own lives, families and homes afloat and getting out seemed like the only option.

I don’t mean to be the bringer of a story of doom, but that’s literally what happened for lots of businesses in 2022.

Ok so here’s the doom - 2023 isn’t going to be much better. So please don’t expect it to be - expecting it to be much better would be a fatal error, we need to be real about things. Don’t get me wrong there will be lots of success stories - these won’t stop - but 2023 really will split the good from the great.

Your focus for 2023 should be to survive and head back to profit. If you’ve been running on what feels like empty for a while now listen up, this is for you.

If I could tell you to focus on 3 things in 2023 it would be the following:

Keeping your cash flow healthy
Changing up your marketing - you’re going to need to stand out
Getting back to basics - your numbers, your key drivers, product, pricing etc etc.

There is always opportunity it’s just a case of finding it. Things are changing and it’s exciting as we’re going to see lots of new businesses emerge as well as lots of existing business emerge from 2023 even stronger and ready to drive real sustainable profit.

Focussing on my favourite topic (number 3 above) - getting back to basics is as old as time and guess what, it works. For 2023, businesses who haven’t got these things straight are going to find things even tougher. Let’s get running profitable businesses rather than surviving ones this year.

Here’s a Top 10 of things you simply can’t ignore…

You need to know your numbers. It's all a Maths equation and even if Maths wasn’t your best subject at school you best get to grips with it now (or find someone to do it for you) because if it doesn't add up then it's not going to work. You are not a public service, you need to make money. Cash flow, or the lack of it, is a major killer. If ignored it’s very easy to wrap yourself up in a ball with this and even more difficult to untangle so don’t just leave it on your list, deal with it - now more than ever. This is a huge topic and includes your pricing, product and offer architecture - but you can’t tackle this without knowing the true health of your business first.
Building trust and a reputation is where it’s at. It matters! And even more so in this current climate. Get your brand out there and get people talking about you. There is no better marketing than word of mouth and it's so easy to naturally trust something you know someone else has used and trusted. Here's where your reviews, testimonials and consistent customer service matter. As well as having strong product of course. And now more than ever you want to try your best to get your repeat customer rate up because current customers are much more quicker to spend their money than new ones. They also cost next to nothing to acquire for the 2nd, 3rd and 4th time
You need to be interesting, memorable and recognisable these days to really stop that scroll and get customers coming back. Do as everyone else does and you'll simply blend in. I'm not saying you really have to do something crazy, you just need your brand to have a distinct personality that's different from the next. There are far too many forgettable brands and customers just switch off from them. It’s only when something really stands out that they will pay attention.
Consistency should be the glue that holds everything together in your business. It builds trust and it allows your identity to shine through. People need to see something a lot of times before they trust you so maintaining consistency is key. Also doing anything for long enough leads to success in some way in the end - it’s true.
Strategy is so important, like the most important! It's no longer enough to just whack a brand out there without clear thought and direction. And without them both you're kinda screwed. To me it seems absolutely crazy to do anything without a plan of action and longevity demands it believe me. Customers can easily separate the good from the great and over time it's clear to see that only great survives and I can tell you now they will be the ones with a solid strategy.
Customer Service is so important. It’s deep rooted in everything you do as a business and it forms part of your brand - the combined experience when shopping with you. Ignore it at your peril! It’s more than answering customer emails in a friendly manner, it’s the total package from the minute they land on your website. Customers want to know exactly what to expect. And when they know what to expect they also trust more - it's human nature. One thing that is true when it comes to your customers experience with you is that perception truly is 100% realtity.
Do you actually have a desirable product? Once you have your product nailed then you can really focus on everything else I'm talking about. It's just a case of finding that winning formula. Would you want to buy from you? Would you want your product? The thing about 95% of products is that no one actually needs them. Everyone can live their lives without the thing you’re selling. We actually need very little so it’s up to you to create huge desirability for what it is you’re selling so your buyer believes they do actually need it.
There are no magic spells you can cast on your business - but you can focus on your brand proposition and story and how you communicate it - that will get you much further. Know your story and get confident with it. Repeat it a million times and make sure your customers all know it too. Tell anyone who will listen and if you have a team or even one member of staff, make sure they're well versed too. Humans are super nosey by nature and they all want to see and hear directly from the founder if possible. You don’t need to share you life blow by blow at all, you are in control, but people like to see people so it does make a huge difference.
Your website is so important - it can't be slap dash, it needs to be GOOD! And that's not just aesthetics (although that does matter). It needs to be optimised to encourage every visitor to convert. It needs to inspire and be easy to use. And your images and copy really matter. If it looks unprofessional your customers will perceive it to be unprofessional.
Finally, your determination needs to be the drive that keeps you going. It’s not about hustle culture or manifesting anything at all - it’s about damn hard work, self belief and pure grit. You need to dig deep and be ready to sacrifice some stuff short term for the long term gain. Nothing comes overnight.