The year 2020 has given plenty of time for small businesses to lay low and work on strategies to re-enter the market with a bang. From finding alternative sources of funding to invest in digital marketing, a lot has changed for small businesses in a single year. As we enter into 2021 and a new decade, we expect to see a lot of changes in how small businesses will be run. The new trends in the market will be something every entrepreneur should look out for. Here are the most popular small business trends to expect in 2021.
Marketing
As most small businesses have a website of their own, they need to invest in marketing. Every business should be thinking of creating a reach in the leading social media platforms to find their target audience. The studies suggest that social media ad spends by small businesses will increase 15% in 2021. An estimated $105 billion will be spent just on ads, which is twice the amount spent in 2017. The idea behind such investments is that online marketing can provide results better than traditional press releases.
Due to the increase in online marketing strategies among the growing businesses, every business will be forced to use some level of marketing strategies to stay ahead in the competition. The popularity of a brand on social media can be effective in generating revenue and keeping the lead in the market.
Technology
The latest AI and VR technologies are what every small business will be interested in this decade. While VR was only introduced in the past decade, we will see more applications of it in this decade. People will be able to attend networking events through their VR headsets without having to travel to the event. Machine learning is also a major technology that organizations will be used for data analytics. It will offer high-level personalization, data management, and research in an affordable way.
Small businesses will soon implement new management tools with automation and AI that will help them manage their business in an effective and affordable manner.
Human Resource
Small businesses will also experience changes in the way their human resource management works. The minimum wage for the employees will be increased. Paid leave may also become law in countries like the US. There will be new pandemic-related enforcement that will create safer administration. Every small business may also need a Covid-19 vaccination policy. While the big businesses are already working to change their policies according to the pandemic, the small business is yet to make changes.
These factors will be responsible for shaping how future small businesses will operate. When business owners learn how to adapt to the upcoming trends, experts believe it will give them a head start into the coming decade.