Why 2024 is ‘make or break’ year for businesses

Four in 10 small business owners believe 2024 will be a “make-or-break” year for their business, according to new research.

A survey of 2,000 small business owners, half of whom work in the technology or retail industries, found that 40% believe next year will be a pivotal year for their business. I did.

Respondents cited the economy, upcoming elections, and declining sales as reasons why this year will be “make or break” for their businesses, but they also cited continued supply chain issues and the need to hire talented employees. Some people mentioned that they are maintaining it.

But it’s not all doom and gloom for small business owners. 49% said their business’ performance in 2023 was better than expected, while only 21% said it was worse than expected.

The survey also revealed that 71% are optimistic about the state of their business heading into 2024. But there is a juxtaposition between the unexpected successes of the past year and the perceived key qualities of the coming year.

As a result, a third (32%) of respondents are worried that their business will not survive until the end of 2024.

Even if they don’t have all their hopes for next year, 38% are feeling more anxious about their business going into 2024 compared to 2023. On the other hand, only 26% of respondents are less worried.

Practitioner slack The survey, commissioned by OnePoll, delved into the fears of small business owners and investigated what respondents were doing to alleviate their fears.

Top concerns included inflation and economic conditions (47%), followed by the need to increase prices (32%) and increased competition (24%).

Respondents also said they were worried about having to update their technology without the budget (16%) and felt the technology they were using for their business was outdated (14%).

However, small business owners are not sitting idly by as these concerns grow, with the survey finding that 74% of respondents are currently taking steps to alleviate their concerns. I did.

This includes increasing marketing efforts to acquire new customers (51%), setting aside funds for emergency use (45%), and exploring new technologies to improve productivity and efficiency (51%). 43%).

A quarter (26%) of small business owners surveyed will be implementing new technology in 2023, with 41% of them implementing new productivity or collaboration technology.

For these respondents, these enhancements will help them better communicate with customers (70%) and internal teams (55%), share information across teams (54%), and improve the software tools their teams use. We believe the number will be reduced (40%). ).

“The landscape of small businesses in 2024 reflects a clear desire to maximize efficiency with limited resources,” said Jaime DeLanghe, senior principal of product management at Slack. “No matter what sector your business is in, productivity and collaboration tools can be a key driver of growth and productivity for your company.”

Small business owners also worked to improve their businesses throughout 2023, ending the year with some positive results.

By the end of 2023, respondents will have acquired new customers (47%), increased profits (30%) and introduced new technology (26%).

When asked what these new technologies are, respondents were most likely to have adopted technologies for AI (50%), productivity or collaboration (41%), and communication (34%) .

Additionally, 75% believe changes and improvements made to their business in 2023 will pay off throughout 2024.

Looking ahead, 60% of small business owners expect to increase their budget this year, and 50% plan to allocate that budget to technology and infrastructure.

They found that 35% are excited to implement new technology or update technology in their business in 2024. Over time, they plan to implement new productivity and collaboration tools (49%) as well as other software tools (53%). .

“The insights from this survey highlight the forward-looking aspirations of small businesses and demonstrate their remarkable resilience and adaptability,” DeLange said. “Recognizing the evolving tools and productivity practices among these companies allows us to better understand their needs and how best to support them, especially in the current economic climate. .”

What are small business owners worried about in 2024?

• Inflation/economic conditions — 47%
• Need to raise prices — 32%
• Increasing competition — 24%
• Need to update technology tools and software but don’t have the budget to do so – 16%
• I feel like the technology I use for my business is outdated — 14%