The concept of the metaverse has been generating buzz lately. Some high-profile experts, like Facebook founder Mark Zuckerberg, see it as the future of human interaction. Another more skeptical group views it as a passing fad.

As a small business, do you need to worry about the metaverse as a game-changing innovation? Is it here to stay? If so, how can you benefit from its emergence?

This blog explores these questions. You'll learn what the metaverse is and how it could impact small businesses. In addition, you'll discover what opportunities exist in the future and how you can take advantage of the metaverse to grow your startup.

What is the metaverse?

The world has become more and more reliant on digital spaces in recent decades. Fueled in part by the pandemic, companies have looked for ways to connect far-flung employees. At the same time, the continued development of social media has meant that more of our interpersonal interactions have moved online.

The metaverse has been hailed as the next stage in this evolution. More than another communication tool, it's seen as a digital landscape (complete with its own virtual geography) that allows us to interact with a computer-contained reality.

Think movies like Ready Player One. Or, if you're old-school about it, Tron. Or, if you want to be dystopian about the prospects of the technology, The Matrix.

The definition of the metaverse can be broad. Gaming companies like Roblox have been called metaverse players. These feature virtual worlds accessible by browsers and apps.

Meanwhile, technologies like virtual reality (VR) and augmented reality (AR) create an even more immersive connection between our physical existence and a digital one. This is the realm of the true metaverse — a space that allows people to interact with each other in a digital environment.

Virtual reality (VR) and augmented reality (AR) create an even more immersive connection between our physical existence and a digital one. This is the realm of the true metaverse.

When will the metaverse develop to full maturity?

The metaverse entered the mainstream in the 2020s, culminating in the decision by social media behemoth Facebook to officially change its name to Meta Platforms. This provided a sign that one of the biggest players in the industry had staked out the metaverse as its future.

Since then, the road has been bumpy. In 2021, Meta Platforms committed to spending $10 billion in a year on its metaverse projects. Then, amid sagging business that saw the stock drop from around $380 in September 2021 to a low below $90 in November 2022, the company went through several rounds of layoffs targeted at its metaverse operations.

However, Meta has shown dramatic signs of a turnaround. The company is looking to begin hiring again. Meanwhile, its stock has rebounded to a level above $500 in early 2024 — more than recovering its losses during 2022.

Even with Meta's rollercoaster in recent years, the metaverse remains a major opportunity. The current market is projected at around $74B. Meanwhile, some project that figure to grow to a level of more than a trillion by the end of the decade.

Clearly, the market has a long way to develop. Despite the hype of the last few years, getting in at this stage would make your small business an early adopter. That gives you some advantages over your competitors — while also forcing you to assume some risks.

Do I need to worry about the metaverse as a small business owner?

Earlier, we looked at where the metaverse market is projected to be in dollar terms. This only tells part of the story. As a small business, you also want to look at people — potential customers you could discover in the metaverse.

One estimate from late 2023 put the number of monthly active metaverse users at 600 million. By 2030, this number is estimated to grow to 2.6 billion. If you can tap into this expansion in the early stages, you can benefit from the flood of projected users.

How can you take advantage of the metaverse now? Let's look at some specifics. Here are the current metaverse opportunities for small businesses:

• Branding: Getting placement in the right digital spaces can raise your profile and give you a cutting-edge reputation.

• A new outlet for finding customers: As more people enter the metaverse, it will become an increasingly useful place to target interested buyers.

• Virtual products: By offering items for sale in the metaverse, you can create new revenue opportunities.

• Building a community: The metaverse gives your biggest fans a place to congregate and discuss. You can encourage this engagement with a metaverse-friendly strategy.

• Gamification: The structure of the metaverse lends itself to games, providing news ways to connect with your audience.

Those were some of the broad themes you can tap into with a metaverse strategy. Now, let's look at some practical steps you can take to engage with the metaverse.

Virtual storefronts

Like with brick-and-mortar venues, the metaverse offers a chance to make direct sales to consumers. To take advantage of this, create a sales portal in the metaverse. This lets you develop a new vector for selling your goods and services.

Immersive experiences

You can use metaverse techniques like VR and AR to model your offerings and to engage your audience. Here are some of the areas that can benefit from these experiences:

• Employee training

• Marketing investments

• Showcasing live events

How to prepare for the metaverse

We’ve looked at some of the benefits you can gain from investing in the metaverse. However, like any new venture, risks exist as well. Here are some of the possible challenges you'll face by moving into the metaverse:

• The metaverse might not develop quickly enough for you. Don't make investments that you need to pay off in a short period of time. Treat the metaverse as a speculative play for now.

• You'll need to budget resources for any metaverse push. Make sure you've set aside enough time and money to develop your metaverse offerings.

• You might pick the wrong platform or technology. Given its ongoing development, there's risk related to the specific tech you choose to employ the strategy. Be cautious in your approach and make sure you maintain long-term flexibility.

Understanding the risks involved, it's important to be thoughtful about your approach to the metaverse. To take advantage of the current benefits and prepare for the future, you'll need a well-structured program for attacking the opportunity. Here are some steps you can take to ensure this:

Set specific goals

As you consider a metaverse strategy, it's important to know what you want to accomplish. Don't go into the process only looking at it as a flier on a new technology. Instead, set clear KPIs and construct a way to track your progress. This way, you'll be better positioned to develop specific projects that let you get the most out of your investment.

Get detailed in your research

Don't just look at the metaverse as a big-picture concept. As with any business opportunity, the details matter. You should dive into the nitty-gritty details, looking at such topics as:

• Individual metaverse platforms

• Current available technology

• Tech upgrades in the pipeline

• Audience preferences

Learn from competitors

You can avoid pitfalls by diving into the experiences of the earliest adopters. Look around for competitors that have already invested in the metaverse. Scrutinizing these efforts will help you form a playbook.

Communicate with your target audience

Reach out to your customers and potential customers. Learn what they think of the metaverse and how many of them are using it now. This information will provide the foundation you need to make good decisions about how to proceed.

Look for partnerships

An aggressive push into the metaverse could get expensive and require expertise you don't have on staff. At the same time, these efforts could easily become a distraction, if they pull too many resources from your main operations. However, you can minimize the burden by partnering with other firms looking to make a push into the metaverse.

Stay current with metaverse developments

Even if you're not ready to jump into the metaverse at the moment, don't close off the possibility in the future. You should continue to research the situation and weigh the possibilities as they arise.

Develop digital assets

The metaverse opens a new revenue-generating arena and an opportunity to foster a sense of community. You can benefit from items like NFTs and digital real estate. Look at your current operation and identify places where digital assets can dovetail with your offerings.

Integrate the metaverse into your marketing strategy

Connect the metaverse to your other marketing projects. Dovetailing your efforts will let you get more bang for your buck. Meanwhile, having your overall strategy in mind will help you shape the steps you take within the metaverse.

How to approach the metaverse as a small business

From virtual storefronts to immersive experiences, there are potential opportunities for small businesses to thrive in this digital landscape. However, as we've noted, there are considerations to weigh before jumping into this area.

Use this blog to understand the steps small business owners can take to prepare for the metaverse. These include investing in virtual reality technology, creating digital assets, and adapting marketing strategies. As the metaverse continues to evolve, you must stay informed and proactive to capitalize on the emerging opportunities it offers.