We recently came across this rather bleak chart below from the LendingTree Small Business survey done in early September. We are tired of the doom and gloom, but we need to look at the data to understand to future.
We keep hearing the truth that the U.S. economy is amid the largest upheaval and downturn since the Great Depression. As the data shows, 43 percent of the businesses surveyed have gross revenue decreases of more than 50 percent. 6 percent of small businesses have been dissolved.
It is obvious that COVID-19 has forever transformed the business landscape on a scale and at a velocity we have never experienced. Main Street CPA firms are not immune to the effects. But the effects don’t have to be fatal or even dramatic.
Small businesses and their owners are the lifeblood of the compliance, tax, bookkeeping, and outsourcing services provided by CPA firms. And, a shrinking pool of small businesses means increasing competition among and between CPA firms, resulting in downward pressure on professional rates and fees.
But, Main Street CPA firms are in a privileged position to deliver impactful advice to help their clients do more than survive – to help them thrive. Within the present turmoil and uncertainty, lie the seeds of opportunity and latent growth.
It may seem counterintuitive to be preaching the opportunity of growth in a rapid economic contraction. However, with the right tools, frameworks, and perspectives, new businesses will be established, and the engine of innovation will continue creating forward momentum amid the present destruction.
Now is not the time for Main Street CPA firms to blend in. Now it the time for them to stand out.