Facing challenge together: Expertise to help your business succeed

Behind every small and midsize business (SMB) is a compelling story.

An entrepreneur takes a leap of faith. A family builds a legacy to hand down through generations. A research team works tirelessly to bring new ideas to life.

SMBs represent the backbone of our economy, employing about 60 million Americans—nearly half of all private sector workers. They created 65% of net new jobs between 2000 and 2019 , a pace they’re expected to maintain at least through 2032 . Yet, these businesses aren’t just economic data points; they’re the heartbeat of our communities. They fuel innovation, create jobs, and shape industries. I’ve dedicated my career to helping businesses succeed—supporting them through macroeconomic challenges and labor market shifts—so they can protect the business, the business owners, and employees.

Our Principal^® team has cultivated a deep understanding of the SMB market, and we now support more than 130,000 of these employers as clients. I recognize how running a business of any size, but particularly a smaller business, means you're juggling hundreds of things at once. It’s important for an owner to try to keep a mindset of progress over perfection. Focus on the elements you can control instead of the seemingly endless business concerns and market forces always ready to distract you.

Here are four focus areas I often share with owners who have their hands full navigating today's complex business landscape:

You should feel confident in your long-term plans—where you want your business to be in 10 or 15 years and beyond. But first I want you to focus on your next three to five steps. What are your immediate business moves? It’s easy to feel overwhelmed by all the decisions on the distant horizon, but it's critical for you to maintain focus on what you’re doing one year from now, one month from now, and one week from now. For instance, can you bundle products and services differently, or find other types of efficiencies? Those next three to five steps are sometimes the most important things to focus on.

The labor market may have cooled from its recent peak, but I still hear business leaders talk regularly about how to retain talent. They’re focused on the right types of talent and skillsets. More than half of business owners are concerned with the availability of qualified job applicants (59%), attracting talented employees (56%), and attracting and retaining the most in-demand jobs (55%).

As part of their talent retention strategy, a record 81% of SMBs are interested in adding benefits within the next year. With benefits, what you’re really giving employees is more support to help be fully present at work and better handle responsibilities and challenges in their personal lives. The financial security you can extend through benefits—whether short-term disability insurance or retirement savings—helps them feel more valued, stay engaged, and think clearly and creatively. Most business owners agree that employee benefits help them with retention (77%), recruiting (77%), and productivity (74%).

Two specific—I would argue crucial—categories of benefits:

• Nearly all SMBs have key employees, team members who cannot be easily replaced and are fundamental to your business's success. Specific benefits can help recruit, reward, and retain them.
• Voluntary benefits are sponsored by the employer, accessed at work, and paid for by the employee. The ease of payroll deduction makes this benefit opportunity an even greater value for your team.

I know sometimes it's hard to sort through the fine print to quantify and understand how something like tax policy will have a direct impact on your business. One thing in your favor: Both sides of the political aisle recognize how SMBs are key to our economy, so fully understanding tax policy often can help you adjust business strategy to improve your financial stability and growth. I would encourage you to stay attuned to all your local, state, and federal policies on tax. Find a trusted tax attorney or similar expert in your network; if you work with a financial professional, they’re often a great gateway to those additional subject-matter experts.