2021 Lesson: What can SMEs Incorporate in the New Year?

NSAt the end of 2020, we were somewhat confident about where the country was heading. There were no cases of Covid and Aotearoa was open again. It was exciting, especially after the ups and downs since April.

We saw small business owners across the country adapting to the new Covid situation and taking the necessary steps to maintain operations and profitability when the country needs to return to an alert-level blockade. ..

Kiwis has become accustomed to scanning stores, restaurants and bars using the Covid Tracer app. This has become part of our daily work.

We saw record high GDP growth in the September quarter as the country’s economy seemed to have similarly receded the dire trends of economists and the media.

And a delta hit.

Thankfully, the Bay of Plenty has managed to circumvent the long tail of blockade restrictions found in other parts of the country.

But local businesses can learn valuable lessons from how these regions pivot and remain relatively functional through digitalization. This should be an important focus for small business owners in the coming months and years.

For example, we’ve seen small businesses shift their focus to e-commerce and online services, if possible, to provide click-and-collect anytime, anywhere. This is also useful outside the blockade.

Xero’s latest SME index data Shows that sales recovered in October 2021 after a two-month decline during alert levels 4 and 3 lockdown. This is because SMEs can continue to do business.

With the opening of 2021 and the preparation for the New Year and new signaling systems to manage Covid, it’s time to anticipate the small business outlook.

Digitization of the small business community

First, digitization will continue to be an important part of business development. For many, the blockade of Alert Level 4 in April 2020 was a keen awakening to the shortcomings of their operations.

Many had to respond quickly to digitize in order to remain open. This change continued until 2021, and many SMEs are changing their overall operations and adopting digital tools to improve overall productivity and well-being. Of course, there is still a way. We know that businesses that digitize their businesses are more profitable and productive than their corresponding businesses.

Many small business owners believe that digital tools are for specific industries, primarily for office workers. But nowadays, there are specialized digital tools for all kinds of work.

It’s important to take the time to sign up for the government’s free digital boost program or check out the guides to get started with digital.

Preparing for a new financial process

SMEs aren’t the only ones adopting digital processes to improve their productivity.

Electronic invoice issuance is in the Kiwi business perspective with the goal of simplifying and automating the exchange and processing of invoices while eliminating human error. Key benefits include faster payment times and improved cash flow, as well as lower processing costs and better connectivity to other businesses.

Moreover, while open banking is still in its infancy, it can revolutionize the way small businesses do. In a nutshell, open banking is a framework in which customer data is shared with trusted service providers.

This will enable these providers to offer a wide range of new financial services such as account aggregation, immediate credit risk assessment and subscription management.

Open banking is starting to gain momentum globally and is what the government is working to bring to our shore.

Border reopening

Governments may be pressured to reopen their borders as they move to a new traffic light framework.

After all, the tourism industry has been seriously affected by the lack of international travel over the last 18 months.

When we open the door, there is an influx of spending, potential Covids and potentially new stocks.

No one knows the curve ball coming in 2022, but the small business community has seen this year adapt with determination and resilience to everything thrown at them.

We believe that next year we will be successful with a digital workforce, the emergence of new technologies, and foreign tourists.

read more: Why you started your business and how to get in touch

2021 Lesson: What can SMEs Incorporate in the New Year?

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