Today, ScaleFactor announced our “2.020” vision, signaling a significant commitment to the evolution of our business. What began as a solution to help business owners get more from their Quickbooks and Xero is evolving into a platform of technologies and services designed to digitally transform the back office experience for both small business owners and the bookkeepers and accountants they collaborate with. Today, we express our gratitude to the customers who have joined us during these early years and taught us so much about what works for their business, as well as our ScaleFactor team that has been so responsive in developing these solutions.
The future of small business finance is more human than you think.
It’s because of their generous feedback that we’re now able to say the future of small business finance is more human than you think. This is the driving idea behind our ScaleFactor 2.020 initiative. Because we are at our core a software company, we are always looking for opportunities to simplify and streamline work, delivering the true benefits of technology to the people we serve. The central question we seek to answer each time we design a software solution is: do the benefits outweigh the costs. If business owners were previously doing this work themselves or engaging another person to do it, does a technical solution make more sense? Often, the answer is yes. The time and cost savings that come from the smart application of technology can be the lifeblood of a small business. But sometimes, the answer is no.
I know from my personal experience as a business owner that being an entrepreneur can be lonely, so it’s not surprising when I hear this reflected by our customers. Sometimes, there are things they simply can’t share with their employees, investors, or families. Many of them yearn for someone to talk to, someone to bounce ideas off of, or someone to give them a pat on the back. Psychological support in the early years is a critical piece of business owner success that requires a different kind of innovation. Technology can still enable that solution, but it is not the whole solution.
Digitally transforming the back office isn’t simply about task management; it’s a redesign of interactions across the ecosystem.
As a CPA and KPMG alum myself, I have a deep respect for the domain knowledge people in our profession can provide. In fact, our talented team at ScaleFactor has yet to find a small business tax, accounting, or finance problem that we can’t solve together. This is the power of the group over the individual. It’s how we harness the collective intelligence of our team for the benefit of our customers. Sadly, most small business owners don’t have a large team of finance professionals that they can turn to for advice. At best, they might employ a part-time bookkeeper with all the limitations that entails. The next hill we have to climb as a company is delivering the value of this collective intelligence at scale.
This is why we’re delighted to announce that ScaleFactor is expanding its core business once again, this time to service both sides of the marketplace for small business finance. Our software already prioritizes and manages many of the small business owner’s day-to-day financial tasks. Going forward, we will pair those products with an on-demand marketplace where business owners can tap into the widest array of collective intelligence and procure the level of human support that fits their business and budget. At the same time, finance experts can match their services to that demand, creating collaborations that are more accurate, timely and helpful.
Our vision is that ScaleFactor can become a one-stop shop for financial technology and services for the 29M small businesses in the US.
We are pleased to announce that helping us on this journey will be a seasoned team of marketplace executives, Rose Punkunus, Lori Williams, Josh Lipton. These leaders and the experience they bring will only accelerate our ability to design the future of work across the ecosystem of small business finance.
ScaleFactor 2.020 will also see us rebalancing our team to better support the next phase of the business. This will include an internal reorganization to align our existing team around each side of the marketplace equation. We are doubling down on our core software business, which will continue to provide the strong foundation that business owners value. We are also retaining a portion of our finance professionals to foster this new marketplace from the inside. In addition, we will be providing assistance for some team members to spin-off and start their own independent businesses as certified pros in our ecosystem.
Taken together, these changes deepen our commitment to digitally transforming the small business finance ecosystem. Our north star has always been and will remain increasing the success rate of small businesses. ScaleFactor 2.020 builds on this foundation by expanding our definition of “small business” to include the wide array of independent finance professionals who we hope will find business success through our marketplace.
Here’s to 2.020 and beyond!