Economists paint a challenging economic landscape for the U.S. in 2024. Fortunately, small and medium-sized businesses (SMBs) can adapt quickly and respond to changing circumstances, making them significant economic growth and development drivers. One of the new business solutions SMBs can adapt to their business structure is offshoring, which offers businesses the flexibility to remodel and expand business operations at a low cost.
This article discusses the different business strategies SMBs can adapt to expand sales and operations along with offshoring to survive and thrive during an economic downturn.
Economic Outlook for 2024
The US economy is predicted to experience a 1.5% slowdown in 2024, largely due to factors like monetary policy, international supply chain constraints, and geopolitical tensions. The United Nations predicts a drop in GDP growth from 2.5% in 2023 to 1.4%, while the Conference Board predicts a slowdown to 0.9%. J.P. Morgan also predicts a below-trend expansion pace of 0.7% in 2024, indicating a challenging economic landscape.
An economic slowdown can affect small and medium-sized businesses (SMBs), leading to a decline in sales and profits, cost-cutting, and difficulty accessing credit, among others. Considering that SMBs generate 44% of U.S. economic activity, this is a big concern for everybody.
Here’s where the agility and quickness of SMBs to respond to developing business strategies work in their favor. Their ability to adapt quickly and respond to changing circumstances helps mitigate the impact of economic downturns, contributing to economic stability.
Additionally, SMBs tend to foster environments that appeal to individuals with the talent to invent new products or improve existing ones, leading to increased innovation.
Furthermore, small businesses contribute to the growth and competitiveness of local economies by filling gaps with innovative products or services, fostering a culture of innovation, and encouraging other businesses to embrace change.
So, what business strategies are out there for SMBS to expand sales and operations?
Strategies for SMBs to Expand Sales and Operations
There are business strategies for small and medium-sized businesses (SMBs) to expand sales and operations that are crucial for their growth and success in a competitive market. By investing in e-commerce capabilities, leveraging digital tools and automation, and reorganizing business infrastructure, SMBs can position themselves to take advantage of new opportunities and drive economic growth.
Investing in e-commerce capabilities
Investing in e-commerce capabilities is a pivotal strategy for small and medium-sized businesses (SMBs) looking to expand their sales and operations.
Optimizing web design to enhance user experience and improve conversion rates is essential in capturing and retaining online customers.
Additionally, implementing secure payment processing is crucial for building trust with customers and ensuring a seamless and secure transaction experience.
Offering free trials or samples can be an effective way to attract new customers and encourage them to make a purchase, as it allows them to experience the product or service firsthand.
Moreover, utilizing social media marketing to promote products and engage with potential customers can significantly enhance the visibility and reach of an SMB’s e-commerce capabilities.
These business solutions, when effectively implemented, can empower SMBs to thrive in the digital marketplace and capitalize on the growing trend of online consumerism.
Companies like Shopify, a platform that enables businesses to set up their online stores, have witnessed substantial success by empowering SMBs to optimize web design, implement secure payment processing, and utilize social media marketing to promote their products and engage with potential customers.
Leveraging digital tools and automation
Leveraging digital tools and automation is a critical strategy for small and medium-sized businesses (SMBs) to expand their sales and operations.
Automating sales tasks, such as lead management and customer communication, can save time and improve efficiency, allowing sales teams to focus on high-value activities.
Using customer relationship management (CRM) software to manage and analyze customer interactions can provide valuable insights into customer behavior and preferences, enabling SMBs to tailor their offerings to meet customer needs.
Implementing marketing automation tools can streamline marketing efforts and improve lead generation, allowing SMBs to reach a wider audience and generate more leads.
Outsourcing sales and marketing tasks to experienced agencies or freelance professionals can be a cost-effective and expert solution for SMBs looking to execute their sales strategy effectively.
By leveraging digital tools and automation, SMBs have benefited from the adoption of customer relationship management (CRM) software, such as Salesforce, to manage and analyze customer interactions, leading to improved customer engagement and sales efficiency. Additionally, the implementation of marketing automation tools, as seen in the case of Mailchimp, has enabled SMBs to streamline their marketing efforts and enhance lead generation.
Reorganizing business infrastructure
Reorganizing business infrastructure is a crucial strategy for small and medium-sized businesses (SMBs) to expand their sales and operations.
Adopting a market-driven approach, focusing on customer needs and preferences, is essential for SMBs to remain competitive and relevant in the market.
Implementing innovative strategies to respond quickly to new opportunities and stay ahead of the competition can help SMBs differentiate themselves and gain a competitive edge.
Fostering a culture of continuous learning and improvement, and encouraging employees to adapt to new technologies and market trends can help SMBs stay agile and responsive to changing market conditions.
Seeking government support and resources to help with business growth and innovation, such as funding programs and business incubators, can provide SMBs with the necessary resources to scale their operations and expand their reach.
By reorganizing their business infrastructure, SMBs can position themselves to take advantage of new opportunities, drive innovation, and achieve sustainable growth.
Companies like Zoho, a provider of cloud-based software for businesses, have exemplified the benefits of fostering a culture of continuous learning and improvement among employees. By seeking government support and resources, SMBs have also been able to access funding programs and business incubators, leading to enhanced innovation and business growth.
Offshoring as an Alternate Solution
Offshoring refers to the process of relocating business operations, such as IT, accounting, customer service, or research and development, to a foreign country, typically to take advantage of lower costs, skilled professionals, or access to new markets.
It’s a strategy often employed by small and medium-sized enterprises (SMEs) to reduce costs, improve efficiency, and increase global competitiveness. Offshoring white-collar jobs also provides the following benefits:
Lower Costs: Offshoring enables businesses to tap into regions with lower labor costs, helping reduce operational expenses and increase overall cost efficiency.
Productivity and New Jobs: With all the savings and new sales companies receive through offshoring, they have enough capital to create new jobs or expand their operations.
Effective Time Management: Small business owners often struggle with time management, often choosing to handle taxes or payroll themselves. These tasks can drain time and lead to mistakes, affecting the business’s long-term health. Offshoring these tasks can help save time and ensure the business remains focused on profit-making activities.
Access to Specialized Skills: Offshoring can provide access to specialized skills that may not be available domestically, allowing businesses to expand their capabilities and improve their competitiveness.
Philippines: Offshoring Destination
The Philippines has emerged as a popular offshoring destination for various reasons, including its strategic location in the Asia-Pacific region, strong English proficiency, and a growing pool of skilled talent.
The country has been a significant player in the global offshoring industry, providing services such as customer support, software development, and content creation for international clients.
Why Partner with iSupport Worldwide
iSupport Worldwide is a company that offers end-to-end outsourcing and offshoring business solutions for SMEs, helping them scale their operations, reduce costs, and improve efficiency.
By partnering with iSupport Worldwide, SMEs can access a range of services, including customer support, sales outsourcing, and marketing, allowing them to focus on their core business activities.
Examples of Businesses that Successfully Partnered with iSupport
A wholesale apparel company turned to offshoring as a business solution to fill its staffing needs. As a dedicated partner offering a reasonable pricing model, iSupport quickly provided a qualified team that significantly contributed to business growth by ensuring the timely processing of customer orders.
A technology firm has struggled in the past to satisfy the expectations of its customers. However, after turning to iSupport, the company has been able to provide great satisfaction, which has resulted in the company’s rating jumping from 1.6 to an astounding 3.8.
An agri-tech company highly recommends iSupport Worldwide for its exceptional services, professionalism, attention to detail, and commitment to providing the highest level of administrative support.
Conclusion
The future of SMBs in the U.S. economy hinges on their ability to proactively prepare for the dynamic landscape of 2024. By embracing technological advancements, fostering adaptability, strategically planning, and considering offshoring business solutions, SMBs can position themselves for resilience, innovation, and success.
Are you prepared for growth in 2024?
Click here for a no-obligation consultation to find out if offshoring can help you reduce expenses, enhance efficiency, and thrive in spite of economic uncertainties.