SMALL BUSINESS 2022 #1 PRIORITY: ONLINE REVENUE SALES

Boosting online sales is now the No. 1 priority for small U.S. businesses. Facing rising costs and Inflation concerns have also driven prices higher. Small biz owners have or soon must adapt to this new norm.                   

Revenue from online sales matters—for all businesses. It’s now the number one priority for the nation’s small businesses and almost all small businesses say online sales are a very important source of revenue in 2022. In fact, almost all speculate that digital technology will be important to their business next year, since nine out of ten small businesses need to sustain online revenue sales. Currently economic confidence remains high. Businesses with fully integrated online and offline sales are the most optimistic about the economy.

Online Revenue Growth Anticipated
The pivot to digital is solid trend for small businesses. This year 75% made significant changes to their business (directly impacted by COVID-19). In fact, 1-in-4 changed their entire business model. The top three changes saw: More use of digital technology, More revenue from online sales and More cost reduction. Revenue from social media is 33% of small business revenue; even brick-and-mortar businesses get 22% of sales via social media.

Boosting online sales is the top priority for small businesses, which means that they must also improve results from marketing through making investments in innovation. All small businesses expect digital technology to play a major part in 2022; many already rely on this resource. Everyone understands that It’s not just about running the day-to-day operations of their business. Four out of five small businesses confide that they’ll have greater success if they invest in digital technology.

Revenue-1st Plan Drives Costs Up

Small businesses are focused on revenue right now and inflation is a concern for 97% of them. Rising costs are one of the biggest threats small businesses currently face ... many consumers share this concern. The top costs for small businesses are materials, shipping, and equipment. Labor costs also cause concern for many firms. Higher shipping costs is compounded since three-quarters of small businesses have already experienced supply chain problems and of these, 40% expect these problems to continue.

Many businesses have resolved supply chain problems already or expect them to be resolved soon. Small businesses react to mounting cost pressures by acquiring new customers (customer base expansion is currently the No. 1 cause of stress for small businesses.) Almost two-thirds plan to increase prices over the next three months.

Small Biz Top Priority Is Hiring

More than two-in-five small businesses expect to expand their workforce over the next three months, which  suggests the strong hiring trend already seen will continue in 2022. Only 3% predicted a declining workforce. Labor costs remain a concern for almost nine out of ten firms. Small businesses still struggle to find qualified candidates; almost half say hiring is getting harder (only 16% say it’s gotten easier). Nearly half of the owners stated that retaining skilled workers is more difficult now; likely attributed to the 40% of U.S. employees are currently seeking new jobs that offer better pay or benefits.

Wage Increases Expected

To attract new talent, three-in-five small businesses are hiring younger workers, and many are relaxing experience requirements. The theory is that to retain the best employees, firms will increase pay for existing employees during the next pay reviews while 36% will also offer larger bonuses.

Positive Growth Outlook

Small businesses that have fully integrated online and offline sales are the most upbeat. Even though the past two years have been rough on U.S. businesses, especially small ones, more than two-thirds remain optimistic about the economy and see opportunity ahead. Everyone hopes this positive rise in attitudes and applications will sustain this upward trend.

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