There’s been a lot of chatter over the past few years that business owners are only thinking doom and gloom and sitting around waiting for the inevitable recession to hit. However, Grant Freeman, the president of Thryv, a software solutions company for small businesses, says entrepreneurs are actually saying, “I’m still really busy!” He notes that while visiting a client a few weeks ago, the business owner told him that this past summer was his busiest season ever.
“While there are still plenty of challenges that come with owning and operating a small business today, those end-of-times predictions just aren’t coming to fruition,” Freeman adds.
Freeman says he’s heard a lot of optimism from Thryv’s clients who say “they’re confident the long-awaited recession is simply not happening. While some are building doomsday bunkers, most small businesses aren’t slowing down.”
Good news for small businesses
So why are small businesses doing better than expected? Consumers. Consumers are still spending, according to the newest report from the National Retail Federation.
Since consumers are feeling good, they’re spending. Freeman says, “For those small businesses in the 'nice to have' camps, like spas and gyms, this is great news. Those in the 'must-have' camps, such as roofers and plumbers—well, they’re as recession-proof as you can get.”
Another positive sign Freeman sees is that he’s “starting to hear less about workforce issues.” This is important, he says, since “finding trustworthy employees is a key component of long-term growth for small businesses—you can’t go it alone for the long haul.”
Lingering challenges for small business
Of course, there are still challenges for small business owners. The just-released Bank of America 2023 Women & Minority Business Owner Spotlight reports that the nation’s entrepreneurs are concerned about inflation (78%), the U.S. political environment (67%), interest rates (65%), and commodities prices (63%).
Freeman says he’s hearing that “supply chain issues and increased material prices have taken their toll, and small businesses are at the point where they can no longer pass on those higher costs to their customers.”
Another big challenge Freeman sees is the challenge of being able to borrow money at manageable rates. He adds, "[It's] extremely difficult for small business owners to get bank loans right now. Loan rates are so exorbitant it’s going to stunt growth. If a business can’t find affordable loans, they won’t invest in new equipment or get a third or fourth truck for their team.”
Freeman advises small businesses that need funding to “get creative” and explore alternative money-raising methods, like crowdfunding.
4 ways to build a stronger future for your small business
Freeman says exploring what you can do to build a healthy and sustainable future for your company is critical. His four suggestions (in his own words):
1. Maintain repeatable processes
Many small businesses complete a lot of their tasks in an ad hoc way. For instance, they never create an invoice the same way twice, or customer contact information is stored in various ways.
This makes it impossible for you to grow since you’re wasting time making up the process with each interaction. Create processes for everything from gathering money to sending appointment reminders.
Yes, there’s a giant chasm to cross in adopting a process or a system for your business’s workflows. And there’s some pain and fear in changing how you do things. But you simply can’t scale something you don’t have processes for.
2. Stay present with your customers
Customers cancel in your absence, so you have to stay present. You have to remind them that you’re there—in a non-salesy way that also adds value.
If you’re a plumber, you could have a newsletter with tips for preventative maintenance or ways to take care of your water heater to save money. And then automate the way you send those out (which is a repeatable process, too)!
3. Be wherever your customers are
I’m talking about social media. There’s a real expectation that if you’re a legitimate business, you should be on Facebook, Instagram, LinkedIn, etc.—wherever your customers hang out. Once you’re there, people can communicate with you. Then, you’ll need a system to ensure you can easily communicate across all those apps, as well as Gmail, your website, texting, and more.
Remember, once they contact you, your customers expect an immediate response. If it takes you 48 hours to get back to them—they’re gone. And that’s a lost opportunity.
4. Happy employees = happy customers
The kind of environment you set up for your employees will have a direct and linear impact on the experience that you deliver to your customers. You must focus on the employee experience to deliver a great customer experience.
This means everything from providing them with the right tools and training to do the job to helping them understand your long-term vision. When employees know you care and feel like they have some skin in the game, they’ll feel part of something bigger that they can believe in.
