A Blueprint for Business Resiliency

In today’s environment, resiliency is not just a buzzword for small businesses – it’s essential to overcoming challenges, staying competitive and thriving in the midst of change. 

Running a small business is not easy, and business owners face many challenges – with planning for the future, time management and managing cash flow being some of the most difficult aspects of managing a small business, according to a recent survey of small business owners conducted by the Capital One Insights Center. The survey is the latest installment of ongoing research to better understand the strategies and resources entrepreneurs use to maintain and grow their small businesses. 

Relying on a lean yet essential set of digital tools to help as they navigate and pursue new business opportunities, our research found that while the past year (2024-2025) had been the most difficult for owners to run their small businesses, an overwhelming majority of resilient owners (89%) shared that they were excited about opportunities to grow their businesses this year.

Amidst this backdrop, Capital One Business customers such as Pacific Transformer, are a testament to how innovation and adaptability – especially through the use of digital tools – can be essential catalysts to achieving resiliency and long-term success. 

A legacy of resiliency 

Pacific Transformer – which is an Anaheim, California-based business that manufactures transformers for many different customers, including the U.S. military, hospitals, Disneyland and NASA – has built a reputation for precision, reliability and customer-centric service in the custom transformer and power supply industry. 

The company was founded over four decades ago by three close friends – Jim Richardson, Pat Thomas and Randy Nverka – over a slice of pizza,  after recognizing a need for quickly-made, high-quality custom-made transformers for clients across industries. After successfully completing their first customer order – which was to manufacture 1,000 transformers in their local shop in what would normally take two weeks within just four days – the three founders kicked off a legacy of agility and top-notch customer service for Pacific Transformer. 

Currently, Justin Richardson, son of Jim, manages Pacific Transformer and credits the family-owned business’s success to a blend of hands-on expertise, a deep understanding of their clients’ evolving needs and the ability to undergo rapid customized prototyping. 

Yet, even companies with strong foundations aren’t immune to external disruption. The 2021 global supply chain crisis posed significant challenges to Pacific Transformer and similar businesses. The question wasn’t just how to survive – but how to adapt and pivot. This is when Pacific Transformer seized the opportunity as a resilient U.S.-based company. At a time when other companies were saying no to new orders, Pacific Transformer welcomed the challenge – bringing on an influx of new customers and investments that helped exponentially grow its revenue.

Recognizing that persistent agility requires more than experience and grit, Pacific Transformer relies on its relationships with employees, customers and Capital One – in addition to a suite of tools that foster ongoing resiliency throughout the company, including its business credit card with Capital One, enterprise resource planning systems and adopting AI, among others. 

Tools offering flexibility are key for small business owners

Resiliency and the ability to pivot requires extreme flexibility from business owners, who in turn require that of their tools, and business credit cards emerged as one of the most flexible tools business owners use. Four out of five (81%) resilient business owners report having a business credit card, and the overwhelming majority of them say their business credit card is an important digital tool that provides flexibility to manage their finances (92%) and is essential to managing cash flow (90%). 

This flexibility extends to the use of their business credit card rewards, as well. More than three quarters (77%) of all small business owners surveyed use business credit card rewards to directly grow their operations or manage their businesses, buy needed equipment (48%) and increase inventory (44%) – increasing short-term resiliency for long-term success. Additionally, one out of three (34%) resilient businesses use business credit card rewards to recognize employee contributions.

Reinforcing resiliency

Pacific Transformer’s story is just one example of how digital tools can reinforce resiliency for small businesses. Whether it’s a manufacturer streamlining its operations, a mom-and-pop-shop fostering customer relationships or a service provider leveraging automation, the common thread is that digital tools afford small business owners the flexibility needed to respond to challenges, focus on business growth and strategy and help plan for the future. 

Resiliency is an ongoing journey of learning, adapting and evolving. Companies like Pacific Transformer show us that embracing change is a competitive imperative.