Businesses PLAN FOR
A STRONG 2023
By Christopher Reardon
There are 33.2 million small businesses in the United States, more than 88 percent of them employing fewer than 20 people. One-fifth of all new small businesses fail in the first year and only 55 percent make it past five years. Nearly one-quarter of U.S. small businesses permanently shuttered during the pandemic.
Yet millions of small businesses continue to operate in the United States today, with founder-owners usually at the helm. Locally, four small business founder-owners whose enterprises survived or even flourished during COVID have high hopes for 2023.
Of course, hope is not a strategy, which is why all four founder-owners have a plan and are members of the Business Strategy & Tactics Forum of the Morris County Chamber of Commerce.
“Every business is different,” said Allan Berger of Berger Business Advisors and current chair of the forum.
The mission of the forum is to provide an avenue for members to share ideas, insights and trends that help drive business results. Meetings often focus on common issues such as operations, financing, sales, marketing and human resources.
“You do all those things to run a business,” Berger said. “It’s about how do I improve or grow my business?”
Amy Gideon, co-founder and co-owner of website design, development and hosting firm TAG Online, said 2020-2021 was a challenge for her company, which she and her husband founded in 1990 as a software consultancy. The company employs five people after losing two during COVID.
Yet business rebounded in 2022 and Gideon, the incoming chair of the Business Strategy & Tactics Forum, is optimistic about 2023. Regarding business development, their focus is on providing additional services to existing customers and adding hosting clientele. Gideon said she personally is focusing on “working on the business more and working in the business less,” she said.
TAG Online is constantly investing in new technology and employee retention is not an issue because their culture is so solid, according to Gideon.
“I’m into work/life balance and want to give that to my employees,” she said. “We really treat our people well…With us you have a say, you can try new technology and you learn…We give them flexibility and we compensate them fairly.”
Rich Lipton founded Lipton CPA Associates in 1990 and today the firm employs seven people. Lipton said 2020 and 2021 each were banner years for his company, with COVID driving new business. The influx in Paycheck Protection Program and stimulus money left businesses in need of help with the tax ramifications. Lipton CPA Associates also is a certified forensic accounting firm and the demand for this type of work increased 500 percent during the pandemic.
“During COVID fraud was rampant,” Lipton said, noting business owners were afraid of theft, partners often could not agree on how to spend PPP money and remote working led to embezzlement.
Lipton said business development for him is 100 percent through referrals and reputation and expects expiring taxes and companies going into savings mode will drive new business in 2023.
Regarding developing management skills, Lipton said, “It’s more than managing our business…We also manage our clients, for example working with them as they grow. Most companies know just their company. We see dozens of companies.”
Rich Hauser founded RAH-CFO Controller and Bookkeeper, a fractional/outsourced accounting department firm, in 2009. The company employs nine. Business was down in 2020-2021 but COVID actually proved beneficial in one way, according to Hauser.
“It got some people to recognize, ‘Oh, you don’t have to physically be here to do this work,’” he said. “So that opened some opportunities for us.”
Hauser also has a positive outlook for 2023.
“It’s really pretty good with the caveat of finding quality employees,” he said. “It’s been a struggle finding people with the right skills sets.”
Hauser said he builds his business through networking and referrals and plans to refocus on these in 2023. He explained his company’s culture is based on their core values: CHIEFS – Caring about the client; Highly valuable services; Integrity – “I have no business if there’s a question about our integrity,” he said; Enjoyable work environment; Flexibility related to family – “Recognizing we all have lives outside of work.”; and Stewards of resources – time, the environment and the clients’ money.
Rauchberg Dental Group was founded in 1965 by Alan Rauchberg’s father, with the younger taking over in 2002. The group employs 22 full- and part-time workers.
While 2020 was a financial challenge for Rauchberg, with the group closed for eight weeks at the outset of COVID, he has a positive outlook for 2023. He relies heavily on marketing and expects to continue that.
“We do a lot of SEO and a lot of community work,” he said.
The group also is expanding, adding an additional 1,000 square feet of space to their existing 3,200.
“We’re moving ahead,” he said. “We’re not worrying about whether there’ll be a recession.”
Like Hauser, Rauchberg is challenged by a shortage of qualified workers.
“We need more people,” he said. “There are some positions we can’t find people for. Retention has been tough. I’ve had to up some salaries to keep people.”
Rauchberg develops management skills within his practice by working with a business coach and naming team leaders within his staff. He plans to invest in a new cone-beam computed tomography system and other equipment for the new space this year.
Regarding culture, he said, “We have a good group of men and women who get along. We set goals and work toward them. But it’s always a work in progress.”
