THE ULTIMATE GUIDE TO SMALL BUSINESS TRENDS IN 2020

THE ULTIMATE GUIDE TO SMALL BUSINESS TRENDS IN 2020 AND BEYOND

WHAT'S ON THE HORIZON FOR SMALL BUSINESSES?

A lot of SMBs are winning in today's economy, and 67% of owners say they expect revenue to continue improving throughout 2019.1 But will the current prosperity carry over to 2020 and beyond? Several trends indicate that it will.

Source:

8 SMALL BUSINESS TRENDS IN 2020 AND BEYOND:

1. TECHNOLOGY AND AUTOMATION SOFTWARE WILL LEVEL THE PLAYING FIELD

Automation has taken some time to unfold, but it's beginning to establish a strong foothold among small business owners. Whether it's for accounting, data entry, email marketing, customer experience management, or any number of business processes, entrepreneurs are achieving more with less, thanks to automation.

Some observers associate the term "automation" with people losing their jobs or being replaced by machines. But, according to a recent World Economic Forum report, machine learning and algorithms in the workplace could create 58 million net new jobs by 2022.1

The benefits of AI are especially relevant for small businesses because automating manually intensive processes and appearing just as professional to customers as larger organizations levels the competitive playing field.2

TECHNOLOGY AND AUTOMATION

According to a Salesforce report on small and medium-sized business trends, growing small businesses were "1.6 times as likely as their stagnant counterparts to say they're using technology to automate business processes."3

1.6x

Sources: 1World Economic Forum; ; 3Salesforce

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2. REMOTE WORK IS THE NEW NORM

Although some believe workers are more effective in a traditional office setting, most of the evidence suggests the opposite. Rather than becoming distracted or slacking off when working from home, research shows that employees that work remotely can be more productive.

In fact, a nearly two-year Stanford study showed "a remarkable productivity boost among telecommuters in a test group equivalent to a full day's work."1 The report found that remote employees put in a full day of work (or more) because they didn't have to fight traffic only to be late to work or leave early for personal errands.

In addition, employee attrition was reduced by about half, saving the test group about $1,900 per employee in annual retention costs. Total operating costs also decreased by roughly $1,400 per employee since workers weren't taking up office space or using as much company power, water, and facilities.

REMOTE WORKERS

According to a recent report by Intuit, 38% of small businesses' hiring managers said their full-time, permanent employees will work mostly remote in the next 10 years.2

38%

"Our employees will primarily

work remotely"

Sources: ; 2Intuit

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3. YOU NO LONGER NEED CASH TO START A BUSINESS

In 2020, starting a small business will be easier and more affordable than ever.1 Smaller, lighter, and smarter systems and manufacturing methods will drive down the costs of starting and running a small business. 2

Even in areas where business infrastructure costs don't decline, technology accessibility will increase. Plug-and-play features and a variable-cost basis will provide affordable access to large-scale business infrastructures for large and small firms.

According to a recent Intuit study, over the next decade:

? Lightweight infrastructures will drive capital costs down by increasing industry operating speed, agility, and flexibility.

? Firms will use lightweight infrastructures to enter adjacent markets, blurring industry lines.

? A shift from fixed-cost to variable-cost business models combined with a pay-as-you-go approach will allow small businesses to minimize investment risk and lower upfront cash requirements.

? Economies of scale will no longer be entry barriers for SMBs.

AVERAGE STARTUP COSTS

According to the U.S. Small Business Administration, most microbusinesses in 2018 cost around $3,000, while home-based franchises cost $2,000 to $5,000 to start.3

$3k +/-

Microbusiness

$2-5k Home-based Franchise

Sources: 1Business News Daily; 2Intuit; 3U.S. Small Business Administration

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