The pandemic hit small businesses very hard, as studies show that over 95% of small businesses were affected. Nearly 60% had to lay off a substantial number of their employees, and almost 30% of small businesses had to close their doors entirely. In addition, there is a gender disparity. On a global scale, 20% of women-led small businesses reported closing in comparison to 16% for men-led businesses. Digital agency growth can help us get there.
Planning for Small Business Growth
Fortunately, the future’s looking brighter for small businesses everywhere. In 2021, the global closure rate for small businesses fell from 24% to 18%. Also, Americans created 2.8 million more online microbusinesses in 2020 than in 2019. Nearly 70% of those plan to grow their microbusinesses full-time, while a much smaller percentage state that they are still working to get on their feet. The future is digital for many of these small businesses. 45% are planning for a future online, and almost 30% are already working on it.
Despite these hopeful developments, it is still important to prepare for the unexpected. Many small business owners are fully responsible for all aspects of their business, such as sales, client management, or hiring. As a result of this, many are too terrified to leave their businesses for even a short vacation. In addition, 3 in 4 report not feeling prepare for their #2 to take temporary leave. The bottom line is that most small businesses are not prepared for unexpected success. More specifically, over 96% cannot handle a sudden influx of leads, and over 80% cannot handle a new client.
Impact of Digital Agency Growth
Now is the time to plan for digtal agency growth. Reports show that by 2024, small businesses could add 2.3 trillion to the global GDP growth. Therefore, it is vital to create a complete and optimized business system. This allows for easy delegation and performance tracking, making it simple to identify strengths and needs for improvement. What has been dubbed a “Scale Map” can be used to track workflow, tech stack, documents, training, and metrics. Workflows refer to steps to track progress, and tech stacking helps to streamline processes to run more efficiently. Documentation is the foundation of organizing assets, and training enables all employees to reach their full potential. Metrics measure the efficacy of the entire process overall.
Closing Thoughts
While there are many factors that may be holding small businesses back, there are so many methods to ensure that one’s business is left working like a well-oiled machine. Making the switch to a digitally focused platform has been shown to be the most successful way to grow and conduct business in a post-pandemic world. In fact, over 60% of businesses that have shifted to a digital platform report planning to maintain and expand those options moving forward.
In addition, 20% of small businesses report having dramatically changed their models since the start of the pandemic. Overall, preparing one’s business for the unexpected can be the key to future success especially in a time that is so uncertain for entrepreneurs across the globe.
