Business owners need to build reliance over the next couple of years – and you need to start now. With inflation driving up the cost of consumer goods, the continuing disruption of Covid in China and a recession looming, decision-makers have tricky waters to navigate.
Solutions come easier if you know the problems you will encounter ahead of time. The challenges we will focus on in this article are cutting costs, migrating to a hybrid model and reinforcing your supply chain.
1. Leveraging Cloud Technologies
It was established some years ago that migrating to the cloud was a cost-effective solution that can boost earnings potential. However, PwC reports that 53% of organisations in the United States are failing to capitalise on the full potential of cloud computing.
One of the issues businesses have experienced is misconfigured software. Conflicting cloud software and incompatible legacy software are blocking user access or causing systems to crash.
Advancements in technology – although marketed as business solutions – can create more challenges. The challenges are exaggerated when in-house IT teams have little to no experience with cloud technologies. The simple solution is to reach out to managed IT support services that specialize in cloud software and provide progressive solutions.
2. Managing A Distributed Workforce
Having recognized the benefits of remote working during the pandemic, businesses switching to a hybrid model will face challenges during a period of transition.
Businesses switching to a hybrid model can significantly cut their overheads by downsizing to a smaller office or taking advantage of co-working spaces. However, savings could be swallowed up if businesses do not deploy an effective model that enables managers to organize and engage a distributed workforce.
According to the World Health Organisation, depressed employees cause a 64% loss in earnings. Unhappy employees are also more likely to look for alternative employment elsewhere. Replacing existing staff can cost as much as $4,700 on average.
Communication and dream bonding will play a crucial role. Employees want to feel a sense of belonging, have contact with teammates and feel part of a culture. Creating flexible solutions that keep everyone happy will be a better solution than a one-size-fits-all solution.
3. Supply Shortages
Supply shortages are arguably the biggest threat facing businesses in 2024 – especially enterprises that rely on goods or fuel to operate at maximum capacity.
China’s zero-covid policy has severely damaged the export trade and goods are simply not available. Delivery services are also struggling to keep their fleets on the road due to a shortage in truck parts.
With manufacturers in China closed for business and a delay in shipping, supply chains have been devastated. Yet the orders continue to come in. Business owners need to find new avenues of sourcing the resources they need to ensure business continuity.
Conclusion
The disruptions that are surfacing in 2024 are expected to spill over into 2024 and beyond. If business owners are to successfully navigate the challenges they will face over the next few years, decision-makers need to act right away.