(new year challenge – 5 min read)
Hi there accounting fans!
Happy new year 2022! Congratulations for making it through 2021!
In the run up to the new year, I was thinking about what to write for 2022. I thought about doing a resolution piece like I did last year in 2021. Then on 29 December 2021, I broke my ankle using my teenage son’s new skimboard that we built together with his grandfather. I learned some valuable lessons that day. Firstly, breaking your ankle hurts; Secondly, setting a broken ankle in a cast hurts (the laughing gas helps); Thirdly, I should know better than trying to out skimboard a teenager.
Once the laughing gas wore off, I started thinking ‘oh well, there goes my new year’s fitness resolutions’. I had planned to train for a marathon and get some surfing done in the summertime. But with a broken ankle, that wasn’t going to happen. Which got me thinking – maybe resolutions are a bad way to start the new year? Think about it – we set fixed goals for our selves like losing weight and making more money. But what happens when life throws a spanner (or broken ankle) in the works and these goals are unattainable? Do we beat ourselves up over it? Or do we pick ourselves up and rise to the challenge?
New year challenge
Let’s take a different approach this year. Instead of resolutions, let’s talk about some of the challenges that small business owners can expect (and unexpect) to face. It’s a quick and easy overview of what challenges lay ahead for you and what we can do to rise to the challenge!
Pandemic regulations are a new year challenge
This one is obvious. With Omicron set to become the new dominant strain of COVID-19, we’re going to see a lot of changing policies in this area. Most countries and counties around the world have implemented some form of vaccine pass system. I expect to see new development in this area as Omicron makes its way through our communities.
Be prepared for more stringent vaccine passes based on a three-dose instead of a two-dose regime. Better yet, stay ahead of the curve and talk to your team about getting their boosters lined up (if you are a physical, close contact based business). We still don’t have a clear idea of how the pandemic will evolve. As business owners, we have to be ready to adapt and change up our operations based on the information we have at the time.
Hybrid working culture is a new year challenge
Work from home? Work from office? Which one is better?
It’s a tricky question. Obviously work that requires physical contact (medicine, hospitality, building, etc.) will still be done in person. With most of the world going in and out of lockdowns all of 2021, many office workers have been allowed to bring their work home with them. These are the accountants, lawyers, teachers and programmers who can still do their work as long as they have an internet connection.
Some of them have liked the flexibility of working from home. On the other hand, some of them have missed the teamwork and camaraderie built working in an office environment. Each model presents its own set of challenges.
Working from home means that your team may be distracted by their kids and/or household chores. There is also a less clearer delineation between work time and family time. However, on the plus side, you may end up with more productive workers as pointed out in this research done in 2015 by researchers at Stanford University. Working from home saves time on commuting, which allows for more time for, well, working!
Working at the office means having to put up with annoying colleagues. Maybe they talk too loudly, or eat noisily – things that you can’t call them out on but still feel annoyed at. Working at the office also sometimes means having to look busy. You finished all your tax returns for the year? Guess what, you can’t take the rest of the day off because the boss is watching you! That being said, working in an office can make you physically feel part of a team. Organisations that have great working culture can get some benefit from this.
Companies around the world are starting to embrace the ‘hybrid work model,’. Where team members are allowed some days to work from home, and some days to work in the office. There is no right way to doing it – but have a search of the key words ‘Hybrid work model,’ and see if you can find something that works for your business!
Growth is a new year challenge
Ain’t no better challenge than the challenge of business growth!
The pandemic was (and still is) a golden opportunity for many people around the world to start a new business. Maybe working from home has allowed some flexibility for you to start a side hustle. Or, like me, you got laid off at the start of the pandemic and stumbled into entrepreneurship. Perhaps you are part of the ‘Great Resignation’, and have become fed up with your day job and want to start something new.
Whatever it is, the US census bureau has tracked a 51% higher than average increase in new businesses registered in the USA in 2020. Which means that we’re onto something here! Many of you who have started a business in the pandemic years (2020 – 2021) may find that business is growing and, wow, THAT is challenging!
With a new business, the challenge is not speeding up your growth – rather, it is growing your business sustainably. You may find that your customer base has expanded quite rapidly and you are starting to feel overwhelmed as a solo business owner. So how do we deal with this new challenge?
2022 is the time to think ahead my fellow business owners! It’s time to plan out some systems which can help your business grow. Think about how to expand your team. What roles need filling? Which team members can you give more responsibilities to? What operational procedures do you have in place to ensure that services are still delivered to standard?
If you started a business online in 2020, you must be pretty tech-savvy. So don’t stop there – always be on the lookout for new software and tech that can help you do your job better and more efficiently. I’m a big fan of process automation and almost half of our operational processes are automated. This frees up time to do other stuff.
What other stuff? Stuff like focusing on growing your little business even more! Network, market and sell your business baby!!!
Bring on 2022!
As I sit here pondering the challenges that lie ahead for our accounting firm, SH Advisory, I realise that my broken ankle will be the least challenging part of 2022. The cast will come off in 6 weeks and then I can (theoretically) start running, surfing, skating (and maybe skimboarding?) again. It’s no big deal really. Running a business on the other hand, is much more challenging.
We’ve got a brand new year ahead of us team! Let’s get into it!!!
Happy new year! And as always,
Stay positive!
lina
Sam H