Small and mid-sized business owners will face challenges in 2019 that were inconceivable a mere decade ago. As technology continues to improve, there is often an urge to become a more digital firm. While this approach works to some degree, it is important to continue maintaining a face-to-face presence when dealing with customers. There are other trends to watch, that will challenge businesses to face moving into 2019 which business owners must adapt to as well. Here are some business trends to watch for in 2019.
Trending Labor Market Changes
Competition for labor is tightening with fewer people seeking jobs. There are more positions unfilled, particularly for highly-skilled labor, making the market more competitive. To continue to attract the best talent, businesses will have to be proactive, offer competitive benefits packages, and in some cases, be willing to offer more flexible work schedules.
Trending Finding the Best Talent
One of the ways some companies may opt to find the best talent is to take advantage of remote work environments. Thanks to the increase in technological advances, it is possible to have a breadth of employees without having to be concerned about expanding an existing facility to house them. Outsourcing of web design, marketing, and customer service is likely to be a trend that continues well into the next decade. This option allows a business owner to make use of talent for short-term or long-term projects without having to offer rich benefits packages or take on the added expense of housing employees daily.
Technology Challenges to Meet Head-on
The EU General Data Protection Regulation (GDPR) is likely to gain popularity across the United States which will force businesses to comply with new technology requirements. This will likely be as a result of continued cybercrime and data breaches which will occur in every sector. Businesses must be prepared to ensure their customer data remains secure which will ultimately mean needing capital to meet these demands.
Challenges with Tariffs, Trade and Stock Market Volatility
There is currently a great deal of concern over tariffs and trade deals. This has resulted in a great deal of stock market volatility. Fortunately, consumer confidence, and business confidence seems to be high and this should help stabilize the markets over the short-term. There is some concern that withdrawing from existing trade agreements and entering new ones could potentially create problems for some businesses, but in most cases, these fears appear to be unfounded.
Banking Relationships Will be Key
Because businesses will continue to require capital, relationships will continue to be a key component for many businesses. Unfortunately, small community banks are still feeling the crunch of regulations despite record profits posted during 2018. Credit unions trends are beginning to do more business lending, particularly since they do not have the same requirements as community banks or larger banks. These changes will still have an adverse impact on small and mid-sized business which often cannot meet the criteria established for business loans. Changes in SBA loans will also continue to have an impact on these businesses.
Finding the Right Funding Programs
As business owners find a need to expand their staff, meet data protection needs of their clients, and expand their marketing, cash flow will become even more important. One of the best ways a business can meet these challenges is by avoiding debt while getting the capital that is so important to their continued growth and viability. This is when spot factoring, and other unique financing solutions will play a significant role for small business.
Capstone Capital Group can help small and mid-sized businesses meet their cash flow needs. We are committed to reviewing your business model and creating a financing package that best meets the needs of every business we work with. We understand the need for ongoing cash flow to meet your business needs and we are prepared to help you find solutions that work for your business. If you would like Capstone to review your company’s working capital requirements or would like more information about Capstone Capital Group, please contact us by filling out our online contact form. You may also contact us directly at us at 347-410-9894 to speak with a representative today.