Biggest Business Threats for 2022
Biggest Business Threats for 2022
Threats refer to factors that have the potential to harm. Typically a business threat is anything that harms a business by hindering the profits of the operation.
Going into our third year of a COVID impacted world, it feels as if we have been facing constant threats whether they are potential, emerging, or right there in front of us, for what feels like a very long time.
Just when we think things might be getting better more threats loom up to pause us in our tracks. It is daunting and exhausting as it affects us in all aspects of our lives especially when it comes to running a business.
Being constantly on guard or in fight or flight mode because of these ever-changing threats to our business and our world as a whole is not healthy and definitely not the answer.
So before we take a look at the latest round of threats to our businesses moving further into 2022 let’s take a quick look at some strategies to cope with a constantly evolving business environment and changing and challenging threats:
Strategies to Cope with Constantly Evolving Business Environments and Changing Threats
Be Aware: Keep an eye out for changing, evolving, and emerging threats and develop strategies to deal with them with varying levels of speed and sophistication subject to their potential impact. The best way to deal with threats is to anticipate and be prepared.
Have a plan: Things constantly changing are not a good excuse for not having a plan. Company planning is one of the most important things you can do to anticipate, prepare and manage evolving business environments, risks and threats.
Keep your focus: not on the threats but the goals and outcomes you have set for 2022 and the tasks you need to fulfill to achieve them.
Be Flexible: Have a plan, set goals and outcomes but don’t be rigid with them, be flexible and ready to pivot or adapt when new threats or opportunities arise.
Celebrate Wins: with so much doom and gloom around us, it is more important than ever to celebrate the wins whether they be big or small. If the win is small, match the celebration to its size, but celebrate it.
Don’t waste time worrying: It won’t change the threats or what’s happening in the world around you. One of my favourite sayings is “don’t buy trouble until it is knocking on your door”, I think this phrase works well for worry as well.
We don’t have control to stop the threats that will appear for us in the future but you have control and influence over the impact they have on your business. Focus on the strategies we have just outlined to cope and mitigate the biggest business threats facing us in 2022, that I will outline for you now:
Biggest Business Threats for 2022
Crippling Labour Shortages
A new survey of 400 chief executives, directors, and business heavyweights by KPMG has revealed that almost 70 percent say acquiring and retaining talent is their key worry, amid negative net migration and soaring COVID-19 case numbers.
With the rapid spread of COVID Omicron variant throughout Australia (and the rest of the globe) those that hadn’t yet felt the singe of labour shortages due to COVID are starting to feel the effects.
Take a look at your Facebook feed to see announcements of businesses limiting hours, services, availability, etc. due to an inability to source the staff they need. And it is now affecting businesses of all shapes and sizes.
These same 400 chief executives, directors, and business heavyweights in the KPMG survey are warning these labour shortages will remain a concern for the next three to five years.
Our tip to help with this threat: Start implementing professional development and other strategies to increase the retention of your best talent and position your business as a destination for available talent moving forward.
Talent Acquisition Drain
With constant looming threats and global dissatisfaction the widely predicted ‘Great Resignation’ now seems to be a case of when not if.
It is now forecasted that the combination of the labour shortages and the great resignation will see a drain of resources (time, budget, energy, and focus) to recruitment, induction, and talent retention.
In our experience, most companies (this includes the highly successful ones) are not in a good position to handle the investment that will be needed in 2022 and well into the future for talent acquisition and retention.
Our tip to help with this threat: If you don’t have automated strategies and processes in place for recruitment, induction, and talent retention now is the time to build them or outsource this to others that can help you to build and implement them.
Supply Chain Crisis
The supply chain crisis is here, again it’s just whether you have felt it yet, significantly in your operations.
Before labour shortages reduced the stock in supermarket shelves in the early days of January did you notice the freezer section of your local supermarket had zero frozen chips or fries? I did?
Even before that, in the lead up to Christmas, supermarkets and department stores would often not even receive deliveries of the stock in their promotional catalogs until weeks after the promotion if at all.
Our tip to help with this threat: Ensure you are running your business as leanly as possible, have a clear understanding of current turnarounds from suppliers, keep up to date with potential delays and ensure your paperwork and processes set a realistic timeframe for delivery to your clients. It is better if your clients are disappointed that they can’t get something quickly rather than being angry that you failed to deliver.
Inflation & Possible Financial Crisis
As we move out of the holiday season in Australia, get ready for longer delays, fewer products, and rising prices (and not just for RAT tests!). This will not be isolated to the supermarket checkout and will spread to all consumers in all industry sectors.
As we all know inflation is a general increase in prices and a fall in the purchasing value of money. With issues in the supply chain sending prices up and labour shortages predicted to continue raising wages in mid-2022 these are all clear indicators that inflation is on the rise.
With fears of the pandemic being here to stay and more disruptions on the way due to new variants, there is continued worry around a possible global financial crisis.
Our tip to help with this threat: It is crucial you know your numbers, especially your gross profit margins at this time. We all need to continue improving our offers and our value to our ideal clients. If we have a no-brainer offer that has a high perceived value we can increase pricing to match the perceived value.
Innovate or Die
There is no such thing as maintenance in business anymore, if you are simply maintaining your status you will run into trouble and most likely die. Why? Because if you are only coasting along, one of your many competitors will come along and solve your client’s problems in a new or better way or delight them with better results or outcomes.
It is also no longer good enough to be the market leader, if you’re in this position or any other you must be relentless in the mission to grow, scale, find where to, or what’s next.
In today’s rapidly changing digital-first world it is inevitable your competition will catch up so you must implement strategies to always be innovating and staying two or more steps ahead.
Our tip to help with this threat: Always be learning. Read books, listen to podcasts, keep up-to-date with trends, the latest influencers, and thought leaders. Surround yourself with experts and mentors that will challenge you and help you with your thirst for knowledge and your mission of continuous innovation. Look for talent that wants to always be learning and innovating.
In writing this article I feel a little burnt out contemplating all the threats to be faced and conquered in 2022, you might be feeling the same!
Seriously though, our constantly changing world and the need to react more rapidly, effectively, and efficiently is taking its toll on all of us, business leaders and their key staff included. We are all human and we all need a break, unfortunately, the barrage of threats doesn’t seem to be easing up so it is predicted that we will see a rapid increase of burnout.
Our tip to help with this threat: Make sure you are putting yourself first, take breaks, and check out this article 6 NOW Strategies to Avoid Building an Owner Dependent Business that has some really great strategies to help business owners avoid burnout.
If you are feeling overwhelmed or stressed about the looming Business threats of 2022 or would just like to talk to someone about your current business situation to see if I can help, reach out to us. We are all in this together.
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