Business resilience: Small businesses' keys to success

Research shows that a small company's resilience is closely tied to its success. Resilient businesses who are considered "insight-driven" can expect double digit growth compared to other small businesses.

Below are real stories from small business owners we've interviewed to uncover how they've leaned on business resilience to bounce back in the face of setbacks and failures. Each business story — from interviews with Citizens Small Business Community Champion Award winners, Jersey Shops honorees, and Queens Night Market vendors — shows how adapting and optimizing business operations fuels the business resilience needed to succeed.

The stories show the benefits of business resilience and may provide insight to help you build your own ability to stay the course when challenges arise.

Allow yourself a second chance, with help

Resilient businesses find a way to stay the course to success even when adversity hits. Chuck Ondo of Valor Men's Grooming in Pittsburgh has embodied this adaptability through his journey from a U.S. Marine and state trooper to a successful barbershop owner helping fellow veterans. Ondo built — and rebuilt — his life and business, learning the lesson that the path to reaching personal and professional goals is not always a straight line. He overcame addiction and business failure to achieve the success he has today and is a firm believer in second chances and the right resources.

"I lost my first barber shop due to a relapse and wanted to throw in the towel," he says. A 90-day treatment program was pivotal to his personal recovery, and business resources helped him revive his company. Through the Department of Veterans Administration Leadership Program he regained his barber's license, updated his résumé, and purchased new equipment.

His current shop serves over 400 regular customers and gives Ondo a way to forge relationships with other veterans to help them find a path forward. His nonprofit, Semper Fi Mission, addresses veterans' physical, mental, and spiritual needs. Ondo highly encourages his peers to find personal and professional support from the many available community and business resources. "I like to say that I turned my mess into my message by keeping at it and finding the resources I needed,” Ondo says. "Many people need to try multiples times to succeed."

Learn from your mistakes

Dance Happy Design’s co-founder Emily Scott knows that facing what is wrong with your company and making the needed fixes are central to business resilience.

Soon after she started her Wilmington, Delaware-based company, Scott was given an exciting opportunity to fulfill the company's largest order yet with behemoth clothing retailer Aerie. The order was a big jump up for the company that was founded to use the extraordinary skills of often-marginalized artists, including that of a friend with Down syndrome. In hindsight, the company lacked the business operations in place to easily fulfill such a large retail order with its specific requirements and timelines. The company's adaptability and commitment to success got them through, but Scott learned that she needs to clarify all project details upfront and even use different partners to best serve major retailers.

"Now we can sell to some of the biggest retailers in the world and have time to stay true to our vision to show that people with disabilities can work alongside fully abled peers and feel like they are valued," Scott says. "That's possible because we were willing to learn from our mistakes and figure out what we needed to do differently."

Look for opportunities in adversity

When you face business setbacks, look for possibilities. While this approach may sound overly optimistic, it helped Joann Schoenig, founder of Elizabeth, New Jersey-based Joann's School of Dance, when she unexpectedly lost the long-time lease for her dance school's studio. Even though there would be no dance school without a studio, Schoenig tried to view the surprising development as a chance to grow.

"Having to find a new studio was a shock, but it turned out to be a stroke of luck," Joann's son and business manager, Austin Schoenig, says. "The school was ready to grow, but the number of classes we could offer was limited because of our studio space. Losing our lease gave us a push to take the business to the next level and showed me that sometimes a challenge can turn into an opportunity."

During the pandemic, Joann showcased her company's adaptability again. The shutdown's business impact on a dance studio, which is reliant on in-person classes, could have been catastrophic financially. But the studio swiftly shifted to virtual classes and even hosted socially distant recitals to thank her students, which has solidified her customer relationships. "The recitals were quite an effort, because there were so many variables like renting a stage and setting up lighting during a pandemic," says Austin. "Finding a positive in that challenging time has solidified our customer relationships. They've never been better."

Plan ahead and be flexible

Chad Smith of Montclair Flowers and Gifts in Montclair, New Jersey, believes that being resilient next year means planning now. After taking over his family’s flower shop, Smith expanded the business with gourmet gift baskets and in-shop events, all while keeping a strong commitment to personalized service.

The busiest times are holidays such as Valentine’s Day, Mother's Day, Christmas, and Thanksgiving, but weddings and graduations fill in the potential slower times of the year. To be sure he has innovative, beautiful offerings for all these occasions, Smith typically plans months in advance. "In March I start thinking ahead to next year's Valentine's Day, considering what the state of the industry might be like then, and brainstorming what we can offer to be competitive."

In addition to preparedness, flower shops need to manage spoilage, supply shortages, and other industry-specific challenges. By looking ahead and building in contingencies, Smith always finds a way to provide what each customer wants.

"I have had to plan, but be creative, to ensure we always deliver beautiful arrangements for our customers," he says. "I’ve worked with local vendors to find flowers, fulfilled orders myself, and learned to be flexible when things do not go according to plan."

Prepare financially for future challenges

Unexpected financial obstacles are commonplace, even in successful businesses. Joey Batista of Joey Bats Cafe has learned this running his thriving Portuguese restaurants in New York City. He believes strongly that having the right partners and financing options builds business resilience. Batista transformed his mother's Portuguese recipes into a successful bakery, but when the COVID-19 pandemic hit in March of 2020, he needed to close three physical locations and find a way out of an expensive lease. Batista adapted and kept business operations up by creating outdoor dining experiences to generate revenue. He is fortunate that he had the financial resources to stay afloat, but the experience left him with some advice for businesses that want to be more resilient: Find partners who understand and support your business. An attorney helped him negotiate his way out of an expensive lease, and he has a banker who sees what is possible with Joey Bats Cafe.

His experience has reinforced the reality that financial challenges are to be expected, even when you run a thriving business. To secure the financing that most businesses need at some point, Batista recommends looking for financial support from a banker who believes in your potential. "You need to find a banker who takes the time or has the knowledge to understand not only the challenges but the opportunities of your business," he says.

Do you need guidance on your small business journey? Schedule an appointment with Citizens to receive personalized assistance for your business.