The ongoing COVID-19 pandemic, economic fallout, increasing geopolitical tensions, climate change, cybersecurity threats, and the potential for further natural disasters… 2023 looks like a promising year, if you’re a part time action-movie director.
However, even if the future seems to be not so bright, there are always new opportunities.
Like every other year, 2023 will bring new and exciting trends that can help startups grow and succeed. You know the rules, to stay ahead of the competition, you need to know what trends to watch out for and swiftly implement them.
In this blog post, we will discuss 10 startup trends to keep an eye on in 2023 that can help your business grow and remain competitive. Note that these are trends include various aspects of business life, from tech to advertising.
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1. (Finally) Embracing Technology
Let’s be honest, everyone is fed up with techy “trends”. Still, there are 3 crucial technologies that you MUST implement at least on a basic level, as it defines your competitiveness level. We decided to highlight them in a short list below and mention the main issues they may help to solve.
• Artificial Intelligence and Big Data (wider personification opportunities for customers, work processes automation, internal creative & marketing tasks boost, better analytics for internal usage)
• Internet of Things (real-time technical process monitoring, improved customer service, improved manufacturing, new product features possibilities, data gathering)
• Cloud Computing (better data management and remote work system, advanced security measures, creating and maintaining disaster recovery plans)
If you want to be ahead even further, we recommend following the news and updates about quantum computing technologies. Quantum computing today is like an AI in 2018, there is not much hype, but the huge perspectives are clear and achievable during this decade. There is no practical possibilities to adapt this technology on operational level, but it’s just a matter of time.
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2. On the verge of digital and IRL
As people start to return to pre-pandemic activities, businesses can capitalize on this by offering offline experiences that are seamlessly integrated with digital services.
One way to do this is by using Virtual Reality (VR) and Augmented Reality (AR) technologies to provide an immersive offline experience that can be seamlessly integrated with online services. Remember about 2022 World Cup AR app to see the stats about the game? Or let’s assume that a clothing retailer could use VR technology to create virtual fitting rooms that customers can access online, while also providing customers with the ability to try on clothes in-store using AR technology. There is numerous ways to improve customers experience with VR\AR.
Out-of-home advertising with QR-codes or AR elements, product-focused events with both offline and online options … People love to get information in case they need it, or if they found it was “served” creatively. As a startup, consider to make joint activities with other startups, especially if you don’t have the experience.
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3. Community building as a marketing strategy
By creating a community of passionate customers, startups can leverage the power of word-of-mouth marketing to reach new customers and build a loyal customer base, which is proven to be one of the most efficient instruments. The only way you can start it is by offering exceptional round-the-clock service (hello, chatbots) and loyalty programs.
One of the key benefits of building a community around a product is the positive impact it can have on social media ads. The authority of a page and its activity can affect your account’s ads reach. A strong community can help to increase the reach and engagement of social media posts, as community members are more likely to share and engage with content.
Additionally, having a community that actively mentions and shares a startup’s product on other platforms from Twitter to Quora can help to improve the visibility of the brand and increase the chances of reaching new potential customers, who are genuinely interested in your offer.
According to a survey conducted by Social Media Examiner, 92% of marketers agreed that social media is important for building community and customer engagement. Additionally, a study by HubSpot found that companies that prioritize customer community see a 19% increase in revenue, compared to those that don’t.
Don’t forget about the possibilities of offline events, webinars, e-books, and any other activity that can be driven by community advocates, who can only be grown through consistent and relevant content.
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4. The flop and rise of Metaverse
In the last years, there was a hype around the concept of metaverse, as investors and companies were betting on the idea that the metaverse will be the next big thing after the internet. Many startups and companies were investing in building metaverse platforms and applications, with the expectation that it would revolutionize how we interact and do business.
However, the hype has declined in recent times as the development and adoption of the metaverse have not progressed as quickly as expected. This could be due to a number of factors, such as the high cost and complexity of building a metaverse, lack of standardization and interoperability between different metaverse platforms, and lack of consumer demand for metaverse experiences.
Despite the decline in hype, the metaverse still presents interesting opportunities for startups and companies to leverage for more revenue. And this is a great possibility to start digging in, while the others are disappointed about it.
Consider using metaverse for virtual events in custom-designed environment, possibility to test virtual goods, or even creating a full replicas of real-life offices (this is more about your corporate culture). Additionally, the metaverse could be used to create new forms of entertainment, such as virtual reality games and social experiences.
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5. Total automation
Predictions for the future indicate that the use of these technologies in business process automation will continue to grow. It is expected that by 2025, the global market for Robotic Process Automation will reach $7 billion, while the global market for AI will reach $190 billion.
One of the key benefits of business process automation for startups is that it can improve staffing and team augmentation. By automating repetitive and time-consuming tasks, startups can free up their staff to focus on more important and strategic tasks. Additionally, automation can help startups to reduce their labor costs and increase their efficiency.
In industries where there is a shortage of labor, automation can also help startups to fill the gap. For example, in retail, the use of robots for tasks such as stocking shelves and conducting inventory checks can help to reduce the need for human labor. Similarly, in healthcare, the use of robots for tasks such as patient monitoring and administering medication can help to reduce the need for human labor.
Startups should consider incorporating these technologies into their operations in order to improve efficiency, reduce costs, and increase productivity.
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6. Deglobalization and supply chains
One of the main logistic and mobility issues for startups and businesses is the trend of deglobalization, which refers to the reversal of the process of global integration and the increase in protectionism.
Although deglobalization has been driven by political factors, such as the rise of nationalism and populist movements, it has the potential to have a significant impact on the global economy. However, it’s important to note that deglobalization does not necessarily mean a decrease in global trade, as the statistics show that global trade has actually been on the rise in recent years.
We’re talking about the situation where the logistic will be changed, but the demand will only be growing as it used to.
Economic globalization, which refers to the integration of economies through trade, investment, and capital flows, is not necessarily impacted by political deglobalization. Economic globalization is a complex and dynamic process that is driven by a variety of factors, such as technological advancements and changing consumer preferences.
While political deglobalization can lead to changes in certain industries, such as those that rely heavily on exports or those that are sensitive to trade tariffs, it is unlikely to result in a severe impact on the overall global economy. For example, the automotive industry may be affected by changes in trade policies, but technology and innovation driven industries such as IT and digital services, are less likely to be affected.
Stay informed about the latest developments in global trade and logistics and prepare to adapt to changes in the global economic landscape.
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7. Sustainability as a way to revenue growth
One of the main reasons why sustainability is significant for startups is the positive impact it can have on the fight against climate change. This advice is more of a “do a right thing”, than “do things right”. For example, a startup using renewable energy sources or implementing recycling programs in their operations can reduce their environmental impact and help to combat climate change.
As the world shifts towards clean energy and the energy industry facing new issues, startups that focus on sustainable energy solutions can position themselves for success in this rapidly growing market. Developing solar or wind energy technologies can benefit from the increasing demand for renewable energy sources. Also, you’re less depended on fossil fuels, which can be weaponized for political purposes.
And of course, sustainability can also help startups to improve their social and reputation. Companies that ignore climate change and sustainability, can face negative reactions from customers, employees, and investors. Especially when it comes to greenwashing, which can completely destroy your reputation.
By investing in sustainable practices, startups can improve their reputation and attract customers who prioritize environmental and social responsibility.
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8. The tough challenge of VC Funding
Before diving into that part, it’ better to understand what problems we have now:
• As the startup ecosystem continues to grow, there will be an increase in the number of startups competing for VC funding.
• Economic uncertainty and valuation slump: the rate of US inflation peaked at 9.1% in 2022, from Q2 2021 to Q2 2022 43% decline in unicorns sparked, and even mild upcoming recession will hurt the funding.
• According to Forbes, investors are more likely to back full-stack operating solutions, rather than SaaS point solutions
That means that investors will be more favorable of startups that can clearly show the benefits of its product functionality, with ready to use MVP and clear architecture. Especially when we’re talking about startups creating complex software or ‘super-apps’. Consider increasing your product features, even if it means outsourcing some of its parts.
Developing alternative investment streams will also be a great decision. Especially crowdfunding through platforms like Kickstarter (which will be especially useful for product startup) and non-dilutive funding (the one where you don’t give up any equity in the company, like grants, loans). The trend of risk diversification will never be outdated.
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Conclusion
As we can see, apart from challenges, 2023 brings lots of possibilities for startups to impress their clients and reach new heights. Despite being a year full of upcoming challenges, the startup community and markets itself will set new and efficient methods of growth for coming years.
By focusing on 8 abovementioned trends and implementing those recommendations in reality, we believe that every startup will become much more flexible and attractive for investors.
And if you want to handle your tech challenges, you can always rely on Pecode. Contact us here hello@pecodesoftware.com
