What Challenges Will Businesses Face in 2021?

Illustration of a man pushing a boulder up a hill against a blue background to represent business challenges in 2021
  • James Notaris

    CPA, ESQ. Legal Editor

  • Steve Longo

    Executive Editor

    In Brief:

  • Business will face many challenges in 2021. 

  • The COVID-19 pandemic and cybersecurity are among these top threats.

  • Explore the 2021 business challenges here and how to address them!

Business endured a tough 2020 due to the COVID-19 pandemic and resulting economic fallout. But what will 2021 bring?

The year is still young and represents a chance for entrepreneurs to start fresh and grow their businesses again. However, it’s also important to understand the challenges businesses are facing in 2021 and beyond. We examine them in-depth here!

The Impact of the COVID-19 Pandemic

There’s no question that the impact of the COVID-19 pandemic will continue to affect businesses all across the United States this year. 

While 2020 proved to be a difficult year due to the rampaging pandemic, 2021 offers a new hope, even with its effects still very apparent. To counter the lingering impact of the pandemic as well as to better prepare for the future, businesses should make sure they have a solid fund of cash reserves on hand, stay flexible and agile, embrace remote work if possible, and look to cut unnecessary costs wherever possible. 

Cybersecurity

In addition to the ongoing impact of the COVID-19 pandemic, cybersecurity and privacy remain key concerns for businesses. 

Data breaches, hacks, and malicious cyberattacks have become increasingly common in the private sector and pose a major threat to companies, regardless of their size or industry. Critical data can be stolen, employee information leaked, and entire websites and infrastructures paralyzed. 

Don’t let your company fall victim to cyberthreats! Make sure that your business uses cutting-edge antivirus and cybersecurity software, that your employees are trained to spot phishing emails and other threats, and that all your critical data is secure online. 

Cost Control

Controlling costs will remain another significant challenge for businesses going forward into 2021 and beyond. 

Many companies are looking to tighten their belts due to the ongoing pandemic as a way to save money and be better prepared for the future. While this seems daunting at first, it can be accomplished in a number of ways. 

eCommerce firms, in particular, should look into eco-friendly packaging, reducing consumer returns, negotiating with their suppliers and manufacturers, and lowering their packaging and shipping costs as a way to save money. In general, businesses should strongly consider remote work, embracing marketing and sales automation technology, and cutting their supply and production costs as a way to lower their expenditures in the new year. 

Goals - Plan - Success written on a black chalkboard for business planning and goals

Attracting Talent

Attracting and retaining talented employees should also be at the top of the list for business’ priorities in 2021. 

While competitive pay and benefits have always been key for attracting the top talent on the market, businesses also need to adapt to the current situation caused by the coronavirus pandemic. That means offering remote work flexibility, top-notch health insurance, and fair medical and family leave policies. 

Cloud Migration 

Finally, even as your stay grounded about the challenges of 2021, don’t forget to keep your head in the clouds!

Cloud migration, that is. Cloud computing offers an efficient and cost-effective way to stay organized and manage projects across your business. Embrace this technology in 2021 and beyond to cut costs, simplify your project management, and make your company better organized and flexible. 

Put Your Business on a Path Towards Growth in 2021!

2020 proved to be a difficult year for businesses of all sizes and sectors, but many have already begun to bounce back thanks to their vision and determination. By better understanding the challenges companies are facing this year, you can better position your own for success in the future!

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