Let’s be real: COVID-19 has been a wake-up call for business, shining a blinding spotlight on the crippling vulnerabilities of many organizations. The disruption has ricocheted from Wall Street giants to Main Street mom and pops, bringing many businesses to their knees. No one was immune.
However, it is a common misnomer that business growth is simply defined by a company’s bottom line. There is so much more to it than that. Indeed, the beauty of growth can often be in the eye of the beholder.
In the wake of the pandemic, we’re seeing a surge of optimism when it comes to business growth. Conversations at Go Figure have gone from survival mode to exciting pivot strategies. New products and innovations pepper every coffee conversation and Zoom meeting.
Business owners are redefining what successful growth actual means, and it’s intensely specific. Of course, for some, it’s sales and profitability. For others, employee retention and happiness. Which is why we decided to make the matter personal.
In this report, we’re balancing national voices with local perspectives to give you an intimate glimpse at post-pandemic business success and growth.
The View From Above
A new survey of US small and midsize businesses (SMBs) by Bill.com found that 75% of small business owners (SBOs) are moving to introduce new products and services in an effort to drive growth as they navigate year two of COVID. The survey found that while over 4 in 5 (82%) believe economic uncertainty has hindered their business growth—nearly half (47%) believe their businesses will experience growth in the first and second quarters of 2021.
According to the survey, conducted with 1,000 United States small business owners with under 100 employees, only 13% say government assistance or loans would be most critical for them to grow in the current quarter, citing instead an easing of lockdowns (38%) and increasing owner involvement in day-to-day decision-making (26%) as the most important driving factors for growth.
Instead of looking outward for help at the start of the pandemic, 75% of SBOs answered that they took matters into their own hands. Actions taken included offering discounts and pricing changes (51%), new customer outreach (30%), new products or services (26%), negotiated payment terms (23%), and new business model pivots (19%).
The quantitative data is promising. But we were curious for more qualitative feedback as well. So we chatted with a few of the small business owners in our circle to get their views on growth.
Francisco Nieves-Taranto
RentCare Property Management
What does growth mean to you in 2021?
Growth means to increase the profit by improving the acquisition of new business closer to our target market. The term ‘reinvent’ certainly applies to our firm, but not just as it applies to remote work-from-home and paperless initiatives. The government regulations have impacted our process and operations for certain clients. The pandemic also made us more focused in the implementation of efficiencies that we were not utilizing before. So in a certain way, COVID helped set us up for better success in 2021.
What are your opportunities for growth this year?
Our focus on the Horizon West geographic area creates the biggest opportunity to growth, knowing that and what is already approved to be developed in this area is exactly what our acquisition goals are.
What are your biggest obstacles to growth?
Owners are selling their properties and not many investors are on the market. Plus, rising home values could become inaccessible to the average housing consumer. And interestingly, as beneficial as technology and access to resources can be, in the housing market, that DIY mentality presents a threat.
What was the biggest lesson learned in 2020?
Having a good saving habit for your business.
How have your strategies changed for 2021?
We increased the marketing budget and cut on expenses that directly impacted office operations directly, like office space.
What’s the main thing affecting your cash flow right now?
Debt service and the increase in insurance cost for business has multiplied five times!
Emily Tornatore
Pub Napkin Partnerships
What did you learn about your business in 2020?
I was so lucky to have just been starting my business in 2020. It was a blessing in disguise that everything was done virtually. Had I started coaching in a non-pandemic, I think it would have taken me a while to realize how successful virtual partnerships could work. While I enjoy meeting with my clients in person, virtual sessions open up the market and maximize everyone’s time.
What does growth mean to you in 2021?
Specifically, I’d like to increase the number of one-on-one coaching clients and build to two collaboration groups per month. I have been working on a package to offer to new business owners to help them work thru what they don’t know in order to eliminate many of the time consuming learning processes that go along with starting a new business. Having an accountability partner and a thought partner is so important, especially now when so much is being done virtually.
What are your biggest obstacles to growth?
Time and virtual school! We have two sons and with them home my work hours are more limited than if they were in school full-time.
How did your financial strategies change for 2021?
I am starting to follow the Profit First method. Rachel has helped me realize how important it is to have a plan and stick to it.
What’s the main thing affecting your cash flow right now?
Those who I can really help are those who are overwhelmed or just starting out in their business. The overwhelmed find it hard to take the time to have a consultation with me and those starting out in their business have a variety of things they are budgeting for.
Gus Aref
PlanLife, LLC
What does growth mean to you in 2021?
Dedicating our agency in supporting our existing clients. The key in 2021 is investing in keeping our clients and playing a key in helping them cope with post COVID recovery. Thankfully, we are a recession-proof industry. Although we did not meet our growth plans in 2020, we managed to maintain our book of business by spending more time with existing clients helping them cope with the adversity of the pandemic. For 2021, we anticipate growing our business through cross-selling and a upleveling our marketing.
What does growth look like in your business?
We measure growth using 2 key performance indicators. Retention ratio and the number of clients who are promoters. The higher the rate of clients choosing to work with us year over year and the higher the number of clients referring to us the higher our chances to grow and succeed. Those 2 factors are directly impacted by our delivery of our value proposition, provide a consistent level of service and earn and keep the trust of our clients.
What are your opportunities for growth this year?
Cross-selling and upsetting our client base. Many of our clients are often surprised we represent national house brand carrier such as Progressive and Safeco. We need to focus on an awareness campaign to educate our clients on the different services and products we can offer will go a long way in helping us achieve growth in 2021.
What was the biggest lesson learned in 2020?
The value of having the right talent working with your team is crucial to the growth of the business. Investing in human capital is a must, finding the right people is extremely difficult and requires a lot of work and search to be done.
What are the most important growth issues in your business or business sector right now?
The insurance industry is facing major issues lead by contractors and attorneys frivolous claims and lawsuits. This has single handily changed the dynamics of the insurance industry in Florida. As a result, many carriers have been forced to exit the market and premiums have increased astronomically. Finding new ways to offer and deliver competitive and comprehensive insurance solutions to our personal and business clients remain a priority.
Heather Aycock
Catalyst Travel Design
How did the pandemic reinvent your business?
I was a chemist in the pharmaceutical industry for 20 years, but I became increasingly unhappy with my corporate environment. Travel was my outlet, so I decided to look into career options as a travel advisor. After extensive research, I applied for and was selected to a mentorship program with Largay Travel. Taking on a change while a pandemic was unfolding forced me to grow personally and professionally.
What’s the biggest lesson you learned in 2020?
I share a common feeling with a big portion of the population who had to reevaluate what they really wanted out of life after 2020. I have to give credit to my host agency for taking an incredible lead to reinvent how they did business, and to support and encourage each and every advisor. They were a model for how to pull through such a difficult year.