Starting a business in the UK is hard, but sustaining the business is even harder. In an era of technological development and growing competitions, there are many challenges which a business may face. The United Kingdom s potential for profitability and low barriers to entry make it an ideal market for businesses to enter and creative competition. In order to compete with the rival businesses, one needs to keep up with the trends. Taj Accountants have compiled a list of the growing business trends in 2020 to support you get a head start over your competition.

1. Remote Working

Over the years, the rise in technology and shift to digital channels has reduced the need for employees to work from their respective office spaces or for business owners to be physically present in the workplace. With the COVID-19 pandemic on the surge, the trend of working from afar is experiencing a major boost. 

This trend of working remotely seems to help companies operate more effectively and efficiently. Studies show that those who work remotely at least once a month are 24% more likely to be productive. As businesses are given the option to hire remote employees, we have now seen a wider range of diversification amongst employees which allows for greater creativity and job opportunities in industries.

2. The Gig Economy

Technology has made gig work a more viable option. Businesses have the opportunity to hire independent contractors, freelancers, and short-term workers to perform a range of individual tasks, assignments, or jobs.

The gig economy is empowering women, who have initially opted to leave their full-time jobs when starting a family, to return to employment. For those who are hesitant to start up a new business, the gig economy provides them the best opportunity to test their project and experiment by using it as a side gig. Additionally, for the more established businesses, offering gig work allows for an easier recruitment process and allows them to effectively fill skill gaps. 

The trend has gained popularity within sectors such as, ride-sharing apps, online art stores and many more. The proliferation of the gig economy has enabled businesses to save money in several ways.

3. Alternative Lending 

From the year 2019, alternative sources of funding such as P2P lending and crowdfunding are accelerating. Given the fact that 80 percent of small business loan applications get rejected from traditional banks, this provides an excellent opportunity for those businesses looking for funding. 

Now the alternative sources of funding seem to be taking over from traditional business lending. Subsequently, startups are now leaning more towards non-bank lenders rather than traditional high street banks. This trend has been caused by the new sources of funding having a higher (triple) acceptance rate than traditional banks and also, due to the more simplified application process for acquiring the required financing.

With one of the fastest-growing varieties of alternative finance schemes - peer-to-peer (P2P) offering APRs as low as 9 percent and axing annual revenue requirements, upcoming startups do not seem to be struggling with financing.

4. Subscription Box Services 

Over recent years, subscription box services have been getting quite popular. With regards to sectors such as food, beauty, apparel and lifestyle, subscription box services have become more prominent, the industry is growing by an impressive 1% per month.

By focusing on niche products, subscription-based businesses have increased their revenues 5.5 times more quicker than their IPO counterparts. Subscribers are 3 times more likely to order products than those without a subscription, thus this subscription-based approach has become a prominent technique within the market. In the aftermath of the pandemic, the demand for subscription-based products is expected to bloom even faster.

With that note, the market seems to have plenty of space for niche subscriptions. So, if you’re looking for a good growth model for your niche business, consult with Small Business Accountants in your area to help you develop a high potential business plan and get you started.

5. Virtual and Augmented Reality

The virtual reality (VR) and augmented reality (AR) industry is growing rapidly. The global market is expected to expand by 34.5% from 2019 to 2025. 

Traditionally, the use of virtual and augmented reality had been centralised in the gaming industry, but the potential uses of virtual reality for business are practically limitless. Research has shown a growing demand for it by both large corporations and small businesses. 

Small businesses are now targeting to use this technology in the future after observing the phenomenal potential growth in the industry. If you are tech savvy and interested in technology, virtual reality will provide you an abundance of opportunities to explore. 

Final Thoughts: 

These business trends will inject billions into the economy, so now is a good time to adopt the trends, execute your business ideas and make the most out of it. Also, having a solid business plan and selecting the right business model can determine the success or failure of your venture.

Specialist Accountants in London can guide you through the process of starting a new business, having the required strategy and maintaining the finances. Having the right kind of Small Business Accountants in London can ensure your success by advising you about the right trend, technology and technique. 

How Taj Accountants Can Help You?

Taj Accountants are multi-award winning specialist Small Accountants in East London who offer a wide range of accounting and taxation advice to sole traders, limited companies or partnerships. Whether you are a start-up company, poised for expansion or simply looking for manageable account support, you can always rely on Taj Accountants.

DISCLAIMER: The purpose of the blog is to provide information and insight regarding the situation. The readers must contact experts before making any decisions based on the information. We highly appreciate you to contact Taj Accountants for further assistance.