The year 2017 is shaping up to be one of uncertainty with many unanswered questions. How will the new pro-business, anti-regulation administration impact small businesses? Will the stock market continue to rise or will it reach a plateau? However, as we approach the second quarter of the year, experts are beginning to see several trends emerging in the small business environment. Here are four trends the business leaders need to be watching in 2017.

1) Specialization is key.

Specialization is playing a key role in many corporate decisions, ranging from whom to hire to how the organization delivers its product. For many years, companies looked to hire employees that could perform a variety of roles. Today, however, hiring managers are seeking candidates who are Subject Matter Experts (SMEs) in their chosen field. These SMEs are, in turn, delivering a very specialized product to consumers. Even if the market is small, consumers need to feel that their particular needs are being met. For example, Amazon and Netflix have been able to reach a targeted audience and deliver specialized content directly to them.

2) Crowdfunding isn’t just for a source of capital anymore.

Crowdfunding is the practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet. In 2015, it is estimated that over $34.4 billion was raised using this technique. In addition to raising capital, many businesses are finding crowdfunding as a valuable way to test, and gain validation of, their products.

GE’s FirstBuild, a subsidiary of GE Appliances, is one of the best know examples of a company using crowdfunding as a way to test the market for a product before going into production. In 2015, GE FirstBuild launched two successful products, the Paragon Induction Cooktop and the Opal Nugget Ice Maker, through crowdfunding on Indiegogo. These two products collectively raised over $3 million in presales and acquired over 10,000 customers. Even though GE didn’t need the $3 million to begin production, the company used crowdfunding as an opportunity to build a focus group and to gleam from them useful information about what they were looking for in a specific product. The company in turn was able to use the information in the conceptual, design and manufacturing phases of production.

3) The use of video to provide information. Video is increasingly being used to ensure that a company’s message is being consumed. According to a 2016 survey of “Content Consumption Trends,” 55 percent of those surveyed said they would prefer to watch an informative video. Only 33 percent of respondents would read an article and 29 percent would read a blog post. In a related study, Forbes found that video is becoming a critical source of information for business executives. More than 75 percent of those surveyed said they watch work-related videos on business websites at least once a week and that 65 percent have visited a vendor’s website after watching a video. Both of these studies show that small businesses need produce and release consumer-related information on video in order to reach as many consumers as possible.

4) Create a comfortable environment (both physical and mental) for your employees.

For many years we have heard that bigger isn’t necessarily better, money can’t buy you happiness, and experiences are more important than things. In Denmark, many people have adopted this trend, called Hygge. Hygge (pronounced hue-gah) is a Danish word meaning a feeling or mood that comes from taking genuine pleasure in making ordinary, every day moments more meaningful or special. How can a small business owner bring the ideas behind Hygee into the work environment? Here are some simple suggestions:

  • allow flexible hours
  • encourage staff to take regular breaks outdoors
  • be considerate towards colleagues
  • use warm colors in the decor
  • provide good quality lighting, comfortable seating, and a well-stocked pantry area

How are small business trends evolving? Take a look back at my 2016 predictions published in my blog post 4 Hot Small Business Trends for 2016.