How to Turn Industry Disruption into Business Growth

When market pressure hits, the best business growth decisions often get forced on you.

When California changed its contractor laws (AB5), I was worried it could destroy my San Diego–based experiential marketing agency. Instead, it became the catalyst that transformed us from an owner-dependent operation into a nationwide powerhouse.

I launched as a solopreneur in San Diego; my first hire was an intern. By early 2020, we had 13 in-house team members, 150 part-time W-2 staff in California, and 600+ part-time contractors nationwide. That journey taught me a simple truth: scaling isn’t growing fast—it’s building systems that can handle growth sustainably.

How External Pressure Can Fuel Real Business Growth

AB5 hit our industry hard. Agencies relying on freelancers had to rethink their workforce structure almost overnight.

I gave our California contractors a choice: become W-2 employees or opt out. Most chose to stay.

That decision forced us to build what we’d postponed:

• Dedicated HR, stronger compliance and more robust insurance
• Formalized hiring, onboarding and retention processes
• Clear management systems and org structure

Result: We became more attractive to bigger brands seeking less risk and stronger infrastructure. We could confidently deliver larger programs—and we built a culture where part-time team members felt connected to our vision.

Disruption Isn’t the Enemy—Lack of Infrastructure Is

History keeps proving itself:

• The 2008 crisis pushed traditional retailers online.
• COVID-19 accelerated digital transformation across industries.
• The shift from carriages to automobiles rewarded companies that rebuilt their capabilities, not those that resisted.

What separates surviving businesses from failed ones isn't avoiding disruption. It's recognizing that disruption often reveals the infrastructure you should have built years ago.

The companies that thrive don't just adapt to change. They use it as a forcing function to build the systems they'd been putting off.

Strategic Leadership: Shift from Doer to Builder

Our restructuring happened right after my maternity leave, when I returned on a four-day schedule. Time away brought clarity: my technically strong team members were great with clients and projects, but many hadn’t managed people before.

I realized I needed to level up their management skills while relieving my own duties that weren't bringing the most value to the business.

I stopped jumping back into tasks that weren’t the best use of my time.

The key insight: I could finally be the CEO I needed to be, focused on strategy, culture, financial oversight, and business growth and development.

Management Training: Turning Tough Conversations into Growth

The biggest challenge for my new managers was giving feedback. Moving from colleague to manager requires a completely different skill set.

I taught them that uncomfortable conversations are opportunities for empowerment. We developed discipline policies and improvement frameworks that got everyone on the same page.

But here's what most scaling advice misses: not everyone comes with you. Some great people simply can't make the transition as your company levels up.

I coached my managers to see letting people go as helping them find their right fit. If we keep someone who's no longer aligned, we're preventing them from reaching their full potential elsewhere.

Hiring That Scales: Match Roles to Strengths

You need both types of people for business growth: some built for growth, others for stability.

We used DISC to match personalities to roles. For example, fast-paced, results-oriented behavior and communication styles thrived in sales; detail-driven, methodical behavior and communication styles excelled in important behind the scenes activities like scheduling, data entry, and ops.

But for 600+ contractors (where formal assessments weren’t practical), we treated hiring like marketing:

-Role-specific job ads that spoke to the right candidate
-Interviews that screened for culture fit
-Resumes to verify relevant experience

The process was thorough because we were never about just putting a "warm body" into a shift, unlike other agencies at the time. This also set us apart, and again, leveled our agency up.

Remote Team Management Best Practices

Managing hundreds of remote workers required intentional engagement.

Every month, I sent a newsletter from our corporate office to give everyone a personal touch. I recorded short "From the Heart" videos sharing tips, motivation, company goals, and vision.

The feedback was incredible. People felt connected to something bigger than their individual shifts.

This personal connection became crucial as experiential marketing industry spending reached significant levels, creating intense competition for quality talent.

Sustainable Business Growth and Scaling Strategies

Here's what I learned about sustainable scaling: 92% of businesses fail to scale, but those who formalize structure proactively achieve higher growth rates.

Most businesses struggle to scale. The ones that succeed consistently do three things:

1. Build systems early. Hiring, training, and management processes shouldn’t wait for a crisis.
2. Invest in people. Technical stars don’t automatically become great managers. Train them.
3. Accept change. Roles evolve, and some team members won’t be the right fit over time—that’s okay.

AB5 didn’t destroy my business—it revealed what we needed to build to scale sustainably. Sometimes the best growth comes from constraints that force you to do what you should have done all along.

Are you facing your own "forcing function" moment? Whether it's regulatory changes, growth pressures, market shifts, or team transitions, I work with business owners to turn challenges into strategic advantages. Let's talk about your next steps. Schedule a complimentary strategy call today.