It is the start of a new year and you will already be working on the first steps towards executing your 2023 plans. Having overcome the various challenges of 2023, you can move into the new year with confidence and take advantage of some key trends.

The economic uncertainties of 2022 are not completely laid to rest yet, while the digital landscape is transforming at an ever faster rate. Practices such as hybrid work are expected to become the norm while cybersecurity dangers loom large. Planning for these trends early can help you make them work for your business and improve various aspects such as marketing, talent retention.  

1. Plan ahead to stay on top of inflation

Although inflation has eased in Singapore recently, the rest of the world is still fighting to bring it under control. The latest from the Monetary Authority of Singapore (MAS) is that domestic inflation is likely to persist at elevated rates for some time. Businesses could see higher rates for electricity and wages. As per MAS projections for 2023, core inflation - which excludes accommodation and private transport costs - will average between 3.5 to 4.5 percent.

SMBs should continue to ensure adequate buffers, and stay on top of cashflow so that any cost hikes don’t slow down revenue. It is difficult to predict exactly how high inflation will get in the future and the best thing you can do is to prepare ahead of time.

This may be a good time to review your pricing and increase if necessary to make sure you are able to cover costs and remain profitable in the coming months. Another potential strategy is to diversify income sources by exploring new markets, as the different rates of inflation across markets could help nullify the overall effect on your bottom line.

2. Rethink marketing plans for the changing media landscape

The popular digital media channels and social platforms such as Facebook, Twitter and LinkedIn offer SMBs a powerful way to reach mass audiences and increase their customer base. But these platforms are undergoing significant changes at the moment. For example, Twitter is seeing the departure of many advertisers and the drop in their spending on the platform is likely to affect their financial health and normal operations. Meanwhilenew platforms like TikTok and Twitch are gaining popularity, although they also have their share of problems.

Consumer behaviours around discovery and engagement with digital content, which was what was initially driving advertising on the old platforms like Facebook and Twitter, are also changing.

According to a report by global creative agency WeAreSocial, it is becoming common practice for consumers to move fluidly between platforms. For example, they may watch a short product clip on TikTok, remember it again when they watch to a longer video on Twitch and eventually decide to visit a business website when they see an ad on Facebook. 

These shifts in the digital landscape may mean that marketing plans will also need to evolve. While SMBs may have relied on one or two platforms for their entire social media presence, now they may need to be creative and experiment across multiple channels and alter their plans along the way. 

3. Take advantage of hybrid work models

SMB owners have generally adapted to hybrid work becoming the norm. Singapore is leading the way in APAC for providing hybrid work arrangements. There is also strong encouragement from the Singapore government, with the Ministry of Manpower urging employers to embrace flexible work arrangements.

SMBs who keep up with this trend and continue hybrid work practices will benefit in many ways. For example, it can help with recruitment, retention, and engagement in the workforce. Flexible work arrangements are becoming more attractive as a perk for job candidates today. Businesses will still have to explore new ways of maintaining and driving productivity in hybrid work arrangements.

4. Prepare for cyber threats with adequate protection      

If the last few years are anything to go by, cyber-attacks will become more prevalent and SMBs will need to prepare for this by ramping up their security. SMBs are in fact being targeted more than other types of businesses by cyber attacks, with a study by the Cyber Security Agency (CSA) in Singapore showing that SMBs bore most of the brunt of a 54% increase in cybercrime in 2021 since 2020.

These cyber attacks take various forms, from ransomware, phishing and bots to even website defacements. One of the reasons that SMBs are targeted more could be due to their limited IT and cybersecurity resources compared to larger enterprises.

Singtel helps SMBs protect themselves against sophisticated cyberattacks, with a suite of cybersecurity solutions that includes endpoint security, data protection, network security, asset and data security, all via a monthly subscription model. 

5. Discover new opportunities with sustainability 

There has been a strong push towards sustainable practices in Singapore, both from the government and from businesses alike. According to the Asean SME Transformation Study 2022, 65% of SMBs in the region indicated that sustainability is currently an area of importance and concern.

Simultaneously, there are more grants and schemes being introduced by the government to help SMBs adopt green practices in their business. The Energy Efficiency Grant (EEG) is the latest one, which helps businesses in the Food Services, Food Manufacturing or Retail sectors to cope with rising energy costs, through co-funding investments in more energy efficient equipment.

SMBs should look at sustainability as an opportunity to drive efficiency and reduce wastage, both of which will result in cost savings. Being seen as a sustainability advocate can also help SMBs attract talent as this is something that job seekers are prioritising these days. In fact, a JLL survey showed that over 50% of employees would consider a socially and environmentally responsible company as a future employer if they had to choose between two offers.

Look out for new announcements from the government regarding green grants that will make it easy for you to adopt sustainability projects in your business.