What to Expect in 2021
2020 was a hard year, but we made it through. And while we’re not sure of everything 2021 has up its sleeves, we can let you know what business trends to expect throughout the year.
Digital nomadism, entrepreneurship, and inclusive/supportive leadership will be popular in 2021. Businesses should anticipate that the changes experienced in consumer preferences this past year will outlast the Covid pandemic.
Remote Working
Zoom, which grew from a startup in 2011 to going public in 2019, became part of everyone’s vernacular in 2020. Other collaboration tools such as Microsoft Teams, Google Chats, Chanty, etc, have helped facilitate remote work across the globe. That trend will only continue throughout 2021, as many offices have delayed returning physically to the office, with some even instituting permanent work-from-home policies, such as Facebook, Twitter and Microsoft.
During the pandemic, many small businesses shifted to part-time or full-time remote work schedules in response to local ordinances. According to a survey by Intermedia, 57% of small to medium-sized business owners said they will likely maintain remote working options for employees in the long-term. With that shift to remote work, small business owners have had to turn to different technologies to survive the pandemic. According to a survey from GGV Capital, 54% of owners stated that they have spent more on software solutions in 2020 than they did in 2019. Of those owners, 75% stated that they expect business spending on software solutions to increase next year.
Businesses that offer virtual services will continue to be in high demand. According to the U.S. Chamber of Commerce, the pandemic has led to increased demand for certain business types and may of those businesses will remain popular in the new year. These include cybersecurity, at-home fitness, food delivery, gaming, home improvement, and telemedicine businesses. If you are considering starting a business or are looking for ways to pivot or expand your business, look to these business categories for inspiration.
Contactless Experiences
The U.S. has seen a 20 percent increase in preference for contactless operations, with various industries implementing alternative processes. The pandemic drastically enhanced the need for new technologies to keep people healthy and streamline experiences. Many of the changes will outlast Covid-19,
No-contact delivery is the new normal. UberEats, GrubHub, DoorDash, etc, thrived through the pandemic once rolling out contactless delivery options. Many grocery stores have implemented options like grocery delivery and contactless pickup to keep stores open. Among retailers that have implemented contactless payments, 94% expect the increase to continue over the next 18 months. Heading into next year, explore touchless payment options for your small business, including online payments with curbside pickup.
Along with touchless options, look to autonomous vehicles fulfilling orders. China based delivery company Meituan tested autonomous vehicles last year and recently launched the service publicly. They expect widespread adoption of driverless delivery within the next three to five years.
But China isn’t the only country looking to get into the world of robotic deliveries. U.S. based startups, such as Nuro or Manna, are looking to bring drone and autonomous vehicle delivery locally.
AI, AR and Robotic Technology Usage will Rise
2020 saw a huge demand for AR and VR and in 2021 we expect to see that rapid growth to surge. From entertainment to business, these immersive technologies are now part of everyday life.
The immersive technologies from AR and VR innovations enable an incredible source of transformation across all sectors. AR avatars, AR indoor navigation, remote assistance, integration of AI with AR and VR, mobility AR, AR cloud, virtual sports events, eye tracking, and facial expressions will see major traction in 2021. AI sensors are being put into security systems, battery life, cameras, smart offices, gaming devices, and just about everything else imaginable. The amount of data being gathered, and the insights generated through this network, is and will continue to be impressive.
Increased Development of 5G Infrastructure
There is no doubt that demand for higher speed Internet and a shift towards well-connected homes, smart cities, AI/AR, robotic technology and autonomous mobility have pushed the advancement of 5G Internet technology.
Many telecommunication services are on-track to deliver 5G, with Australia having rolled it out before Covid-19. Verizon announced a huge expansion of its 5G network in October 2020, which will reach more than 200 million people. There are more than 380 operators currently investing in 5G and more than 35 countries have already launched commercial 5G services.
5G networks are expected to have a 40% global penetration in 2024, handling 25% of all mobile data. Add to this the reality that roughly 1/3 of web browsing is voice-activated and attuned to devices like Alexa and tomorrow’s businesses must have a “voice” presence as part of their online channels.
Integrity-Fueled/Socially-Responsible Leadership
The future of business is about transparency.
Consumers no longer wish to spend their dollars with companies that are misusing funds or whose values are in direct opposition to theirs. Instead, consumers admire leaders with integrity — leaders who are authentic, vulnerable and willing to admit their mistakes. Leaders who don’t increase their bottom lines over employee and customer satisfaction. And leaders who don’t mislead for the sake of reputation and metrics.
More and more, consumers are demanding companies step up to the plate and tackle in some shape or form social and environmental issues such as equality, climate change, species extinction, and more.
Businesses are taking action in a number of ways, such as improving work culture, donating to causes, supporting them on social media and becoming more sustainable within their own operations. If you choose to take steps such as cutting down on packaging waste or diversifying your workforce, be sure to notify your customers through anything from a social media post to a bold mission statement.
Customized Growth Strategies
Entrepreneurs are recognizing there isn’t a one size fits all method to success. There is no secret formula to success. There is no multi-step process that every single entrepreneur can use to create the same results.
The best business strategy is not a rob-and-duplicate model but rather a custom approach that considers vision, values and impact. Entrepreneurs should seek out knowledgeable, qualified individuals who can help them identify their own unique paths forward. Entrepreneurship is a one-of-a-kind enterprise and custom strategies are the way of the future.
Focus on Employee Happiness
Businesses still need employees to thrive and survive, despite the rise of automation. Employees today are seeking an experience, not just a job and traditional compensation packages (401(k), bonus, etc.) are no longer the most compelling factors. Employees want their daily work experience to include more effective motivators like telecommunication, flexible work hours, and paternity leave. Most importantly, employees must feel they’re making positive contributions and that they’re not being taken for granted. Increasing employee job satisfaction greatly reduces employee turnover.
A study conducted by Oxford University’s Saïd Business School, in collaboration with British multinational telecoms firm BT, found that employees are 13% more productive when happy. Additionally, researchers have found that employees are happies when they feel like they are contributing to meaningful work. This requires workers to have a clear sense of the mission and vision of the company.
Many companies have already figured this out, such as Zoom, Microsoft, Apple and Google, which all fall in the top 5 companies with the happiest employees.
2020 was a year of disruption and transition and 2021 will be a year of continued evolution. Set your business up for success by implementing these business trends.
