Hey Reader,

Happy New Year everyone!
​
Over the holidays, while most of us were trying to relax, the accounting platform Bench and, in a surprise twist, was acquired a few days later.
​
This followed HoneyBook's (a CRM for independent businesses) announcement of a price increase in mid-December.
​
Both situations sparked serious frustration with companies that claim to support small businesses. Honestly, that frustration was totally justified, and if you were affected by either of these events, I’m not here to say, “I told you so.”
​
Instead, I’ve been following both of these situations closely. As a communications professional, I'm made for this kind of chaos.
​
​But instead of just grabbing the popcorn, I’ve been focused on pulling out real lessons from these hot messes.​
​
​Lesson #1: Investors Come First
​
​VC-backed companies are playing a different game. They’re chasing growth, often leading to price hikes, sudden pivots, or even shutdowns when things don’t go as planned.
​
​Their job is to make investors happy. ​
​
What we saw with Bench was driven by the company’s performance and a desire to cut their losses. Announcing a shutdown a week before year-end was done with little care or consideration for the impact on their customers.
​
In the current economic climate, we’re likely to see more of these seemingly sudden moves by VC-backed companies, so we need to choose our tools accordingly.
​
Honestly, this is a big reason I like to use best-of-breed tools: I’m not tied to a single platform for everything. Plus, where I can, I use tools from bootstrapped companies, as they’re not beholden to investors.

​
Lesson #2: Get Clear on Their Values

VC-backed companies have one primary mission: scale fast and deliver massive returns to investors. (The same thing goes with publicly traded companies.)
​
That may mean they do business that’s incompatible with our values, from the decisions they make about customer support to how they treat or pay their employees.
​
​Plus, many tools that claim to serve micro and small business marketing rely on flashy marketing to expand their customer base, but they often don’t make decisions to serve that same audience. ​
​
A good example of this is HoneyBook’s price increase. I don’t use the platform, so I won't debate whether it was justified, but the main objection was the increase in amount.
​
It’s no secret that independent businesses struggled in 2024, so a price increase of 89.5% for the starter package felt like a massive jump. (It’s worth noting they did give a small discount for the first year, making the jump close to 50% for year one.)
​
The company made a calculated move, but from my POV as a communications person, they would have handled it differently if they truly cared about the businesses they serve.
​
Choosing companies that align with your values means more than just selecting a tool—it’s about supporting businesses prioritizing long-term stability, transparency, and customer success.
​

Lesson #3: Communications Matters

Having handled communications for many VC-backed startups, I know that when things hit the fan, there’s often a tension between keeping investors happy and doing right by customers.
​
​How a company handles those moments tells you everything you need to know.

Look at the Bench situation: Their communication was a total mess. (And don't get me started on the timing!) They provided vague updates, little transparency, and zero care for how the crisis affected their customers.
​
Then, they basically said, “Oops, ignore that update.”

When evaluating tools (or any investment, for that matter), you can easily see how the company handles communication and customer complaints on social media.
​
Pay attention to how they respond. Is their response helpful and transparent, or is word salad designed to placate customers?
​

Lesson #4: Be Ready for Changes

Tech companies are inherently unpredictable. One day, everything’s okay; the next, they pivot, hike prices, acquire, or shut down.
​
I’ve seen this happen more than many times—it’s not just a hypothetical risk.

You always need a backup plan. You never want to be too dependent on a single tool or platform, especially one that could disappear. ​
​
With any tool you use, ensure it’s easy to export your data and switch providers. No platform should be holding you hostage!
​
Also, proactively consider ways to diversify your risk so that you’re not screwed if any one company makes changes, is acquired or goes under.

​
The Bottom Line: Vote With Your Dollars

Remember: Don't feel bad if you’ve invested in these tools and felt burned. We’ve all been there.
​
The key is to learn from it, do your homework, and choose companies that genuinely support small business owners—not just their investors.
​
​Where we spend our money helps create the kind of business world we want to be part of, especially here in 2025.

Maggie
​