Newport Business Owner Goes Social During Tough Times

For many local businesses, the current economic climate has been tough. Newport resident and small business owner John Florez certainly felt the impact when the revenues of his company, The Florez Group, plummeted to practically zero.  

The Florez Group, a staffing company, supplied companies around the country with resources in the information technology field. Revenues were directly correlated to the number of open positions their clients needed to fill, so when companies stopped hiring, their income dried up.

“It was a drought of about a year, starting in February 2008,” Florez said.  “We had to make a drastic change, given the level of impact that the recession was having on our business.”  

Florez and his business partner and wife, Karen Florez, realized their old business model was not going to work. They made a decision to reinvent themselves and convert from a staffing company into a web development company, a niche they felt was still thriving.

In January 2009 they founded Drupal Connect. Drupal, an open-source solution to web application development, allows software developers to create dynamic web applications in less time, which means a lower cost for the end client.

Their decision to take the risk was soon met with rewards.  Florez said that this year they will enjoy revenues that are six times greater their old business model generated, even during the peak of the economy.   

“The lesson this taught us is tough times call for tough measures,” Florez said. He said the key to success for any business is to understand the  target audience and to leverage social media to reach that audience.

He said small business owners may be intimidated by the concept of social media, but it does not need to be overwhelming.

“It is just the use of existing tools and technology,” he said. “Facebook, Twitter, LinkedIn and Google Ads."

Florez said he could not think of a single business in Newport that could not benefit from the effective use of those tools.

Drupal Connect keeps overhead low by operating within a virtual organizational structure that is comprised of approximately 40 people.  They maintain a small headquarters office in Newport at the building.  

Florez said it is critical to recruit the right people who share a common vision in order for a virtual structure to operate effectively.  To make up for the lack of day-to-day face time, the Drupal Connect team meets at industry conferences and retreats.  

“We do not off-shore,” said Florez.  “The off-shore model does not work.”

When asked what advice he could provide other local businesses who are struggling in this climate Florez suggested if a change was needed, to “take the plunge.”

“It wasn’t an easy decision, but people need to get over the fear,” he said.  “It’s easy to be consumed by fear.”