According to Fobes, now is the time for small businesses to evaluate whether any year-end tax saving measures can be put into place. 

While tax season 2022 may be months away, New Year's Eve will be here before you know it. 

Read the article on Forbes

Supply chain problems are adding more stress to small business owners already overwhelmed by Covid-19, reports WFAA.

The moment you step into The Toy Maven’s Preston Hollow location in Dallas, you'll find holiday shopping has already begun.

Read the article on WFAA

According to KTAR, Arizona is making $5 million dollars of small business funding available. 

Arizona Gov. Doug Ducey has made $5 million more in funding available to aid small businesses recovering from the COVID-19 pandemic and recent weather-related damages.

Read the article on KTAR

Small businesses get tons of financing offers, but there are ways to make sure your business selects the best offer, reports Bloomberg. 

If you’ve launched a small business, you know that offers of business financing follow you like a shadow: Myriad proposals from would-be lenders with goofy names arrive via e-mail, on banner ads, and in your accounting software.

Read the article on Bloomberg

The coronavirus pandemic has indeed subjected many businesses to untold suffering and losses. If your business is struggling, now is not the time to give up. Instead, you should think of ways to remain afloat during these difficult moments. For a small business, there is a lot of pressure to perform after launch. This often leads to the failure of roughly 20% of small businesses. On the contrary, as many as 45% fail within their first five years. Following the outbreak of the COVID-19 pandemic in 2020, their chances of remaining afloat have become slimmer. As such, the number of bankruptcies has risen more than ever before, with Bloomberg's report showing that bankruptcies have increased by over 36%. While bankruptcies cannot be overstated, there are many ways for small business owners to safeguard against the folding over. Here are a few of them.

• Take advantage of the existing government programs

Paycheck Protection Program (PPP) is one of the programs that have assisted many businesses to remain afloat during the pandemic. The program, which was created through the Coronavirus AID, Relief, and Economic Security Act, has assisted more than 800,000 businesses distributing more than $210 billion in loans. Although the PPP ended in May, you can look for other similar opportunities provided by other agencies or institutions. These loans will keep you going until things return to normal. If one institution fails to consider your loan request, try another. Start by looking at the banks that you have a higher chance of getting a loan and go for it.

• Renegotiate the existing contracts and loans

Payment terms and timelines might be affected substantially by the pandemic. This might leave your small business unable to repay its loans or complete all the contracts due to financial constraints. However, you can avoid problems with your financiers or clients by renegotiating the loans or contracts that you currently have. Look at your account payable and find how you can renegotiate them to favor your current situation. Although some of your clients might not agree, others will understand your situation. You can also talk to your property owner regarding rent payment.

• Minimize staff costs

Although it may be a painful decision, you should consider reducing your staff as much as possible. Try furloughing or layoffs to reduce the amount of money you spend on employees. This is often the most sensitive area that needs to be handled with care considering its effects on the future of your organization.  For those who remain, consider pay cuts until things improve. 

• Collect the debts

Money that people or companies owe you can save your business from going under. Although the time is difficult for everybody, some of those who owe you may have the ability to pay. Therefore, you should reach out to them and collect this cash. If there is an invoice you have been holding until work is completed, do not wait any further—Bill for the portion that has been completed. You can also ask your customers for prepayment for a service. This strategy will allow your business to stay alive. Consider giving those who pay upfront a discount to attract them.

If you feel that you have done all it takes but are still unable to pay your bills, seek advice from an attorney. They might have a word or two on how you should move ahead. Some of the advice from your attorney may turn things around and shed more light on what you should or should not do or the procedure of filing for bankruptcy. The good news is that businesses will recover soon, and you will embark on normal service provision.

It is now more than a year since the coronavirus pandemic brought the world's economy almost to a standstill, and we are witnessing changes in businesses that we have never seen before. As the Small Business Administration (SBA) rolled out a massive lending program ever seen in the United States history, fraudsters saw a potential area to exploit, which is the reason for the rising cases of COVID-19-related fraud. The US Department of Justice (DOJ) has termed the high levels of fraud as “historic” and focuses on taking a high level of enforcement action to counter the threat. 

The DOJ has in within a year after Congress passed the $2.2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act, managed to criminally charge over 474 people for allegedly obtaining $569 million fraudulently through COVID-19-related schemes since banks started processing Paycheck Protection Program loans on behalf of the SBA. Among the problems that SBA cites are forged companies receiving thousands of dollars, businesses getting money even if their payrolls is more than the 500-employee caps, and others receiving money even when the law prohibits them due to existing government debts.   

Most cases are perpetrated by people who see the economic intervention by the government as a way of making quick money. While these individuals are now focused on the PPP loans, DOJ notes that the fraud will likely turn into something more complex and more significant in the coming months if not addressed now. Due to the sensitivity and possibility of the matter getting out of hand if left unchecked, sweeping investigations by the DOJ have commenced with the law enforcement now pursuing charges against large companies that received millions of dollars in PPP loans and individuals who are accused of fraudulently receiving PPP loans to finance their lavish personal lifestyles.

DOJ is responding to this in a variety of ways. Recently, it advertised a vacancy for a trial attorney whose work will be to prosecute cases under the CARES Act, including PPP fraud. This adds to the DOJ’s Market Integrity and Major Funds (MIMF) Unit that prosecutes cases involving government procured fraud and stopping fraud in the SBA COVID-19 disaster relief programs such as the PPP and the Economic Injury Disaster Loan (EIDL). 

Fraud liability comes in a variety of ways. The first one is from the certifications that companies need to have before participating in the CIVID-19 relief programs. For instance, to participate in the PPP, companies must have multiple certifications on their loans and forgiveness applications. This is where the fraud begins. Some companies obtain false certificates that show that they have no other government loans or are not involved in any bankruptcy proceedings when the facts are different. This increases the risk of companies falling victim to more sophisticated fraud. 

As the rate of fraud continues increasing during this season of COVD-19, several companies will soon find themselves subject to government investigation related to the PPP loans. This is shown by the number of whistleblower reports and lawsuits under the FCA (False Claims Act), that has been on the rise, the cooperation among several law enforcement agencies at local and federal levels and internationally, and the audits being conducted on all companies that borrowed more than $2 million under the PPP. Businesses with foreign affiliates or operations are equally at risk due to footprints and the cooperation between the US agencies and their international counterparts. 

While the companies that did not take advantage of COVID-19 relief have nothing to worry about, they sometimes get asked questions by the regulators and law enforcers. This can be avoided by maintaining robust files that will support presentations and answer all questions that law enforcers might want to know. 

As a small business owner, every penny always counts, and 2021 is an extraordinary year that every income must be secured than ever. As the pandemic-related challenges continue mounting, you must optimize your revenue and income sources, minimize your expenses and reduce your tax liability. Sadly, many entrepreneurs lack adequate knowledge of tricks and tools that can help them achieve this. They, in most cases, end up spending more money than they should. Although some may see taxation and setting up strategies as a challenging undertaking, the truth is that you don’t need to be a professional accountant to understand it and take advantage of the accounting tips. Here are a few strategies that you should consider in 2021.

• Understand your tax planning

The tax planning process is a critical aspect that helps your business reduce the amount of taxes that need to be paid at the end of the year. Although some business owners wait until the last minute to find out taxation regimes, the secret to this is that the earlier you start, the better the chances of receiving a tax refund. Although there are various strategies to approach tax planning, the main ones are; increasing tax deductions, utilizing tax credits, and reducing your income. While relying on certified public accountants can be helpful, it is often important to have a concrete tax planning strategy in place. Doing so saves money and helps you avoid paying unnecessary taxes. Furthermore, understanding your tax planning gives you an overview of things you are spending on each year. 

• Consider changing to a different tax structure.

When starting a business, the first thing you do is specify whether your business is a sole proprietorship of a partnership. However, things may change midway, and the changes and restructuring can impact the business structure. As you re-strategize, perhaps changing the tax structure in your business can help as well. By choosing to be taxed as corporations, businesses can save a lot of money in tax cuts. Before changing your tax structure, make sure the tax cuts you will realize make sense in the new structure. 

• Know your tax payment plan

Although having a business might be your lifetime dream, generating revenue and paying taxes is a different ballgame that can make your dream a nightmare. This can be made worse by the “pay as you go” tax system, which requires businesses to make estimated quarterly tax payments. This payment plan presents a temptation for businesses in paying taxes as they seek to maintain liquidity. Delaying tax payments “as you go” can put you in an awkward position and present a challenge of penalties and interests that occurs due to delays. Ensure that you have a tax plan and money is always set aside to save yourself from the burden of penalties from the IRS.

• Carefully choose your accounting method.

There are different ways that small businesses calculate their revenue. However, most of them use cash method accounting methods. These methods that are based on the time the money is received instead of when an order was placed. This approach also counts the day the expenses were paid instead of the item or service ordered. Regardless of the accounting method you choose, adjust the approach strategically and report income based on the cash receipts if you want to reduce your end year revenues, mainly if you believe there is a possibility that the income for the coming year will be lower and you expect to be in a lower tax project. A proper accounting method allows you to know the possible tax cuts and anticipate the upcoming tax bracket, which helps you devise a proper tax payment strategy for your business. 

The federal government is in its final stages of a program that will help small businesses remain operational during the coronavirus pandemic. With the coronavirus pandemic posing eral challenges to businesses, the government is looking for ways to support small businesses. President Biden announced various revisions to the Paycheck Protection Program (PPP) approved by Congress last year. The new tweaks put in place by the Biden administration gives exclusive access to the loans to the smallest of small businesses in the US.

Beginning on Wednesday, companies with no more than 20 employees will be the only ones that are legally allowed to apply for the PPP loans. This exclusive access will, however, last for only two weeks. This was done to enable small businesses that have been kept off the PPP loan process during the peak of the pandemic access funds. Since the program launched in 2020, more than 5 million small businesses have benefited from these loans. Companies with less than 20 employees make up 98 percent of small businesses.

According to Biden, small businesses are the drivers of the US economy. They are the soul of the community, which many people depend on for survival. However, with the pandemic now on sight, they are now being crushed. According to statistics, more than 400,000 small businesses have been severely impacted by the pandemic. Apart from the 2-week window that has been added in the second round of loan applications, other rules allow a larger number of business owners to access PPP loans.

The loan calculation formula is also under review. This will give a better chance to the independent contractors, self-employed persons, and sole proprietors in access to the loans. Unlike the current formula, which eliminates home repair contractors, small independent retailers, and beauticians, the new program seeks to eliminate provisions that bar small business owners under the above categories and others from participating in the loan application process. The new provisions also remove the restrictions that deny PPP loans to business owners if they are convicted felons, are delinquent, or default on their student loans in the past seven years. Furthermore, the loan can be forgiven if a small business spends more than 60% of the money on payroll expenses.

Another crucial change is the access to loans by non-US citizen small business owners. Unlike the past regulations that strictly allowed access to loans only by documented US citizens, the amendments now give small business owners who are not US citizens but documented, access loans. With their individual taxpayer ID, any small business owner residing in the US can now apply for the loans. Backers of these new regulations believe that the amendment is long overdue because it will be of significant benefit to small businesses in the US,  regardless of whether the owner is a citizen or not. According to Biden, the new regulations are just the beginning but not the end. Currently, a $1.9 trillion COVID-19 relief package has been passed by Congress.

While it appears as a good gesture, the timing of the new changes will confuse small business owners, more so concerning pending applications. First, the loan, although helpful, might not be enough for businesses that have lost a lot due to the pandemic. No matter the challenges, experts see this as a great chance to fund small businesses that have had difficulty accessing loans, including those owned by women and minorities. Professionals see the new changes as a move by Biden-Harris’ administration to make things right. The program will end in March.

1. Assess the terms of your lease

Rent payment is determined largely by the lease agreement holds you made with the property owner. Therefore, you need to carefully check your commercial lease if there is a clause that allows suspension of rent in case of an emergency. Although there is no guarantee that the agreement will have such a clause, it does not hurt to look. Maybe it is there, and you forgot it. If the emergency rent suspension clause is not there, the assessment can help you uncover other details that can help you. It can help you identify the source of financial help.

2. Seek advice from your lawyer on tenants’ rights

Before contacting your property manager, make inquiries on the rights of the tenants first. Your attorney can give you a better understanding of the lease and your rights as a tenant during such difficult moments. After this, strategize how you will negotiate with your landlord and ask for waivers if possible. If you do not have a lawyer, contact a tenant rights organization and find out if they can offer you legal advice for free regarding what you can do in case of failure to make rent payments. This will help you find out how to approach rent payment challenges legally.

3. Consult your landlord

After all is said and done, you will have to talk to your landlord if emergency coverage does not exist to find out how to settle the rent. Let them know your company’s financial struggles during the pandemic and see if they can help in some way. Speak to them about your long-term intentions to use the space and work out a payment plan as you wait to get through the crisis. Informing your landlord of the challenges you are facing is the right way of letting them know that your business cannot pay rent at the right time. It also earns you their trust and allows you to start a dialogue on payment. If you are in good books with your landlord, they can forego some payments and open up for repayment discussions.

4. Look for COVID-19 aid

If things are tough or not, you should take advantage of aid, if any is available to offset your rent and other payments. Some known aid include Small Business Administration (SBA) and the CARES, a financial program where companies can apply for full or partial loans to solve their problems. Look into the qualifications for such loans and how the loans may help you pay for necessities like rent or salaries for the employees. Apart from the government funding, most of which have expired, you can look for other alternatives to keep you going as things slowly come back to normal. With mass vaccination ongoing, you will soon return to full operations, which will allow you to make profits once again. This means you will be in a position to pay rent as you did earlier.

Building positive team culture can be difficult, at times, especially while working remotely or on a hybrid schedule. However, there are four pillars of positive team culture that every leader can easily implement, as well as encouraging the other members of their team to do so. Without these pillars, team cultures may seem unidentifiable, chaotic, or even negative and unethical. As the leader, you set the tone for the culture and your employees will follow. Building culture starts with you, since culture is people.

Trust 

Without trust, there is no foundation to build on. Trust is both the foundation of and a main pillar of positive team culture because the other pillars listed below cannot uphold positive team culture without trust. Most research points to trust as being the core of positive leadership. Trustful leaders have been shown to build teams of ethical employees and have reduced employee turnover. If your team doesn’t trust you, or they don’t trust each other, collaboration, productivity, and innovation will suffer. Building trust with your team in hopes of creating a positive team culture will require consistency, communication, and inclusivity.

Consistency 

Speaking and acting consistently instills trust in those around you. Therefore, leaders and team members who behave consistently will aid in developing positive team culture. Consistency also includes abiding by the organization’s policies and procedures, as well as holding team members accountable to these policies and procedures, deadlines, and other commitments. If leaders do not treat all team members consistently and equally, trust will not be built as team members may begin to question leaders’ motives. Leaders must remain mindful of their actions and words in order to remain consistent enough to build positive team culture.    

Communication 

The words you use must be consistent with who you are and how you treat others. Your communication needs to be purposeful and transparent. Communicating without thinking or while emotional can dissolve trust and instill insecurity. Leaders must aim to use communication as a tool to help their team grow, whether that be rallying them around the organization’s goals, holding them accountable, providing constructive and positive feedback, or simply getting to know each other. Additionally, transparency in communication is imperative. If necessary, leaders can confirm their communication is understood by asking employees to repeat back their understanding of the conversation. 

Inclusivity 

While conversations of diversity are heavily focused around gender and race, there is so much more that makes us diverse, which means there is so much more to be inclusive of. Building a positive team culture means creating a space where your team feels safe to contribute their authentic selves to the betterment and advancement of the organization. When employees feel they are valued and appreciated for not only their work but for what they uniquely contribute, your organization will see lower turnover, higher productivity, better innovation, and increased creativity. If you take care of your team and allow them to feel comfortable in their own skin, they will take care of you and your organization to the best of their ability. 

Conclusion 

Culture is often considered the “vibe” of an organization. While it’s true that culture is people, culture doesn’t need to change when the people change. Culture is built and maintained through the people, and by focusing your culture on trust, consistency, communication, and inclusion, to start, leaders can ensure this culture remains consistent even when people leave. The key to building a positive team culture is demonstrating these pillars for your team on a daily basis and encouraging them to do the same. Doing this allows each individual team member to uphold and contribute to the positive team culture in their own, authentic way.

Mary Smith is an associate consultant with IA Business Advisors and is a Kolbe Certified Consultant. She has a bachelor’s in English literature and minored in psychology at the University of Redlands; she is currently working towards her master’s in organizational leadership. Her and her father, Dr. Brian Smith, developed The I in Team Series to help leaders find, be, and build their positive influence. The newest title in the series is Individual Advantages: Be the “I” in Team. Connect with Mary on LinkedIn.

As small businesses struggle to remain relevant even during the economic havoc caused by the coronavirus pandemic, data shows that not all is lost as businesses remain optimistic about the future. According to the data by NEXT Insurance, women are twice as likely to embark on business during the pandemic as men. This shows the level of resilience small business owners are showing during the pandemic, even as challenges continue coming up. Despite the pandemic and its effect on the economy and health, which posed threats to small businesses and owners, most business owners are proving to be resilient enough to withstand pressure. Some of the challenges that businesses have to be content with include partial or complete regional shutdowns, reduced profits, low revenues, securing financing, and maintaining the workforce's health.

According to the State of Small Business survey, small business owners are adapting to the challenges thrown at them by the pandemic to improve their resilience. The report found that technology is the leading enabler of business even during the massive disruptions that have been experienced over the past two years. Accordingly, digital-savvy Gen Z-owned businesses have managed to withstand the challenges, with only 17% of those businesses stating that they have experienced losses due to the pandemic. On the other hand, 80% of businesses owned by Gen Z expect to get more than half of their revenue from digital platforms, compared to just 33% for businesses owned by the baby boomers. Regardless of the differences in the age of the owners, about 44% of all small business owners say they experienced revenue loss during the pandemic.

Of all the business owners, almost half of them said that they had embraced technology in response to the challenges posed by the pandemic. This will contribute to 52% of all small businesses gaining over half of all their revenues using digital means by 2022. This is an increase from 42% back in 2019. Furthermore, 56% of all small business owners capitalized on Paycheck Protection Program (PPP) to sort their revenue problems and expenses.

According to the same report, women appear to be the most optimistic compared to men when it comes to starting a business. However, this can be due to the 2.3 million women forced out of work by the pandemic as they sought to engage in family-related activities such as childcare, health, and others. Based on recent studies, women are more likely to start a new business than men at 11.3% compared to only 5.6%. Similarly, more women (57%) are likely to start sole proprietorship than men (42%).

In terms of the economy, small business owners are optimistic that the vaccinations will open things up, and most businesses will resume normal operations. Generation Z is the most optimistic group about the broader economy and how their businesses will benefit from the opening of the economy. As online shopping continues increasing, most small business owners are finding e-payment platforms such as PayPal as the most useful product or service that will shape the future of businesses.

Although starting or running a small business at the time of a pandemic like this might be a challenge, many small business owners are ready to put up a brave face and do it anyway. This definitely has a consequence, that most entrepreneurs are ready to live with, as most of them know exactly what it takes to own and operate a business. Moving forward, the opening up of the economy might change things and reduce challenges, and that is what most small businesses hope. As a small business owner, look for the right approaches to the prevailing challenges and remain optimistic about the good things to come.

Closing a business may seem like a drastic decision to make, but sometimes it ends up being the right one. This is often a good choice if you are not committed to it or are not making enough profits to sustain your business. You can also close your business if it has fulfilled its objectives and you feel there is nothing else you can do. While it may appear easy, closing a business after years of operation is not always simple as it looks. It isn't very easy, especially considering laws keep changing. Here are some tactics you need to check to help you do this correctly.

1. Decide to close

As simple as it may appear, deciding to wind down operations can be difficult, especially if your business is a partnership. If this is the case, all partners or co-owners must first agree on this before anything else. You must follow all the articles of organization and document everything in a written form as a dissolution agreement. Things, however, may be easier if you are a sole proprietor.

2. File dissolution documents

Even if your company is a sole proprietorship, you must follow the law in dissolving it. Failing to legally dissolve your LLC or corporation in an area you registered may expose you to lawsuits and problems associated with taxation. Before embarking on this, you must check the requirements from the Secretary of State, Business Bureau, or Business Agency websites.

3. Cancel all registrations, licenses, permits and business names

During the registration of your business, you register your business name, obtain permits and licenses. Similarly, you should follow the same procedure and terminate all your licenses, permits, registrations, and business names when winding down operations. Doing this protects your reputation financially as these critical identifiers that you no longer need may be used illegally.

4. Check if you have complied with employment and labor laws

Whether you are a sole proprietorship or a partnership, you must comply with the employment and labor laws before winding down your operations. This is the most sensitive part because failing to consider your employees may land you in trouble. The things you need to consider include loss of employment, giving notice to employees, and compensation. Before closing operations, ensure that your employees are notified according to the labor and employment regulations, and everyone has been compensated accordingly.  This will ensure you avoid penalties and potential lawsuits.

5. Resolve all your financial obligations

In most cases, businesses have debts at any given time. Before closing your business, handle issues such as taxes and debts you owe others. If you have an obligation you have not cleared, clear them before ending your operations to avoid damaging your reputation. Cancel your employer ID number and notify tax agencies both at the federal and state level. You can check the IRS website for more instructions on how to close your business for more of these.

6. Keep all the records

Even if you do not like it, you are legally required to keep tax and employment records for your company for some time. The law requires that you keep these records for between three to seven years. Apart from the legal requirements, it is good to do so because it can help in case a dispute arises.

In summing it up, if you feel that it is time to close your business, a good thing to do is consult an attorney well-versed in these issues. Ensure that you know the correct procedure and request help from the relevant authorities if you face an obstacle.

An ever-changing economy creates new opportunities for entrepreneurs, even during these rocky times that COVID-19 has caused.

Whether people are looking for a better work-life balance, a new job after having lost one, or an extra source of income, opening a seasonal business is one strategy that fits those goals, says Chris Buitron, president of Mosquito Authority® (www.mosquito-authority.com).

“Many people are taking this route as a reliable way to generate income,” Buitron says, “because although the economy is changing dramatically in some ways, seasonal businesses still fulfill annual consumer needs.

“The benefits for a seasonal business owner are attractive: more freedom, both in running a business and having the ability to take a few months off; the satisfaction of providing a service or product to which customers stay loyal; lower overhead costs than a year-round business; a solid second income; or, if done right, a sufficient income by itself.”

Buitron offers these tips on how to run a seasonal business successfully:

• Carefully construct your business model. Since you won’t be open year-round, it’s important to account for downtime in your cash flow. “If the seasonal business is your main or only source of income, you’ll need to put in extra work during the season in order to make it through your off-season,” Buitron says. “Make sure you have access to credit and plan your budget very specifically. It’s a bonus if you can find ways to diversify income streams for your seasonal business in the off-season. Determine the other needs of your customers and how you can fulfill them.”
• Evaluate the past season and plan accordingly for the next season. “Analyze your successes and shortcomings from the previous season,” Buitron says. “Seek customer feedback to assist your evaluation. Overall, determine why some things worked and others didn’t. The analysis will help you build a solid plan for the next season. Look at areas such as staffing, inventory, and other expenses. Did you have enough employees and how did they perform? Which products or services weren’t successful? Should you introduce new ones? Would it be cheaper in the long run to buy your equipment rather than lease it?”
• Connect with the public year-round to build your brand. Social media allows a seasonal business owner to build their business, their authority and strengthen their place in the community. “Your target audience is just as accessible in the offseason,” Buitron says. “You can reach out to them and offer exclusive pricing, or create a rewards program. Publish blogs and post updates on the sites your customers follow. Give them content that can educate them beyond the reach of your business’ services. Showing you care about their lives and the community helps them remember you.”
• Attend networking events and workshops. The off-season is the time for self-improvement that leads to business improvement. “Learning and networking opportunities help you and your business grow,” Buitron says. “Local business events, trade shows and conferences are great ways to gain new partnerships and skills.”

“A seasonal business comes with an array of unique demands,” Buitron says. “But with the right combination of good business practices and the passion to make it a way to enhance others’ lives, it can be a profitable and enjoyable experience for the seasonal business owner.”

Chris Buitron is president of Mosquito Authority® (www.mosquito-authority.com), a nationwide leader in mosquito control with franchises serving communities across the U.S. and Canada. Buitron has an extensive background in franchise industries. He was chief marketing officer for Senior Helpers, vice president of marketing for Direct Energy (home services division), and director of marketing for Sunoco Inc., where he supported the company’s 4,700 franchised and company-owned rental facilities across 23 states (over $15B in annual revenues).

Running your own business can be hectic for many business owners. For small business owners, however, having all the responsibility to all operations, including successes and failures, can be detrimental to one’s health. Sadly, health among small business owners has not been taken seriously as it should despite the economic significance of such businesses to society and the economy. The mental health of small business leaders leads to a healthy working environment. It also leads to effective teams that are characterized by respect and trust in one another.

Large corporations with complex and well-structured succession plans can hardly be affected by health issues that may affect their leaders. The well-laid down succession plan ensures that in the absence of the CEO, operations run without hitches. Unlike big multinationals whose operations cannot be affected by the health issues among those in the high offices, poor health among the leaders of small businesses can end operations and render employees jobless. The simple structure of a small business is risky, and the impact of the demise of a CEO is unimaginable. With an instant disease or a condition such as a heart attack, everything can go down the drain since everything revolves around an individual. From this, it is evident that health is the greatest capital of small business owners. The smaller the firm, the higher the vulnerability in case the owner develops health complications, either physical or mental.

The health of such business owners may have damaging consequences not only for those that have been employed but can also impact those that depend on them entirely. For example, the family members who rely on the owners can also be significantly impacted. Similarly, health problems among the personnel and family members can destabilize operations and how the business runs. Small business owners face many challenges that often affect their mental wellbeing. According to a Danish study, there is a significant link between entering entrepreneurship and receiving prescriptions for sedative or hypnotics and/or their spouses. This is a clear suggestion that entering entrepreneurship is a health risk as it is a potential source of stress for entrepreneurs and their family members.

Many studies have found out that stress level among the business owners is higher than those of the employed. The always conflicting issues such as ambiguity in the business environment, lack of adequate resources, and daily hassles as well as failure to clarify roles increase stress and the possibility of health complications. Work overload is another factor that many small business owners face and may result in a complication. Entrepreneurs often work for more than 50 hours a week. Working for long hours, including weekends doing intensive tasks, is a potential cause of stress. 

Uncertainty is often identified as another factor that can cause health problems among self-employed individuals. The fast-changing business environment is always a concern for entrepreneurs who are always worried about their businesses in case things do not go as planned. These owners have many things to worry about, including their employees, government regulations, and reduction in profits, all of which determines the success of their businesses.  Loneliness of business owners also results in burnouts, which in itself is a potential contributor to mental health. Loneliness can be harmful in an environment where difficult decisions are to be taken, such as firing or hiring employees.

As seen above, health issues among the small business owners have severe spillover effects on those they employ and their families. Unlike CEOs of large companies that have a proper succession plan, health challenges among small business owners can cripple operations. As such, it is crucial to always stay ahead by addressing potential causes of health problems before they manifest into catastrophes.

In a world where working from home, family, recreation, faith and other factors compete for our time, people speak about the need to seek a “balanced life.” But maybe “balance” is the wrong goal.

“The concept of being in ‘balance’ has the potential to set us up for immediate failure,” says Michael Sipe, author of The AVADA Principle and founder of the consulting firm 10x Catalyst Groups (www.10xgroups.com).

“We talk about work/life balance as if work and the rest of our lives are separate things. But in reality, work and everything else are all part of one life.”

Instead of balance, Sipe suggests seeking an “integrated life,” where the integral parts of life are combined into a fully functioning whole. He acknowledges that’s easier said than done.

“It’s a challenge to determine what the integral parts of human life are, how to integrate them, and what a fully functioning and completely whole life would be like,” he says.

For Sipe, a major part of that integration involves faith. But his suggestions on how to approach your job so that it is integrated into the rest of your life are relevant regardless of spiritual views.

In Sipe’s view, work often gets a bad rap. Work is actually a neutral concept, he says,  and the larger evaluation is not that we “have” to work, or how much we work. Instead the key is to look at the purposes toward which our work is directed and to be intentional about how we allocate our energy.

In managing your attitude about work, Sipe recommends that you:

• Focus on purpose. “One definition of work is energy directed toward a purpose,” Sipe says. “If you find yourself holding a detrimental attitude about your work, take a look at your purpose. Perhaps you simply are not directing your energy toward a purpose you care about.” If so, he says, consider changing your work so that you can invest your energy toward a purpose that matters to you. Alternatively, perhaps you have not connected your work to your purpose, and thus, your motivation to work is suffering.
• Avoid griping. The more you declare that work is hard, bad, unpleasant, a waste of time, and a drag, the more it will be all those things for you, Sipe says. “Reframe work as good, as a joy, a blessing, a challenge, an opportunity, a privilege, an investment,” he says. “Loving your work is a choice – your choice.”
• Take responsibility and take charge. If you don’t like your work, Sipe says, then change it. “You are not a tree rooted in place; you can move,” he says. “You are not a victim or a slave. If you are blessed to live in the Western world, and especially if you are blessed to live in America, you are free to do the work you love toward purposes you desire”
• Ask yourself better questions. When things aren’t working out as you hoped you might be inclined to ask yourself, “Why me? Why is this so hard? What did I do to deserve this?” Instead, Sipe says, ask yourself: “What am I supposed to learn here?” He says you could also do as the late Jim Rohn, a motivational speaker, instructed: “Don’t ask why things are so hard; ask how you can get better.”

“The concept of work is simple, but we tend to complicate it,” Sipe says. “And work really does apply to everything we do. Yes, we can work at a job, but we also work on our health, work on our education, work on our marriage, work on our friendships, and work on our faith. It’s all energy applied toward a purpose.”

Michael Sipe, author of The AVADA Principle, is the founder of 10x Catalyst Groups (www.10xgroups.com), which helps entrepreneurs grow profitable and thriving businesses organized on a foundation of Biblical principles. Sipe has also enjoyed a successful 30-plus year career in mergers, acquisitions, and business development as the founder of CrossPointe Capital, a middle market investment-banking firm. In that capacity, he consulted with and evaluated over 5,000 companies and has provided advisory services for approximately a half-billion dollars in business sales involving hundreds of companies. He remains active in transactional work and has been a key advisor in mergers and acquisitions projects covering a multitude of industry sectors.

Even before the coronavirus pandemic struck and sank the world’s economy, retiring at the age of 65 was already becoming a hot topic among many professionals. Now that the pandemic has impaired many businesses, both small and large plans of many organizations are in shambles. One of the areas that have been significantly affected is retirement. Business owners that were planning to retire are now forced to rethink. This could mean that the retirement age is likely to fall further as employees try to pick up from where they left once the economy reopens and the pandemic eases.

Although the recovery is expected to happen sooner or later, it may take some time. This is if the 2007-2009 recession is an example to go by. The recovery time can even be longer considering the severity of COVID-19 compared to the recession witnessed in 2009. As such, many small business owners may be tempted to consider selling their businesses rather than waiting for things to get better.

A study by StreetWise Retirement Confidence Index in May indicated that 26% of those interviewed stated that they would postpone their retirement plans after the coronavirus. Their decision is due to the economic conditions that the virus has caused. As damaging as they may seem, the decision is not surprising, given the uncertainty and fear that the pandemic has caused in many industries in different countries. The uncertainties have had an impact on the financial strategies of organizations and have forced many businesses to change their priorities. Another study by Allianz Life Insurance Company found out that almost half of Americans interviewed went into early retirement for reasons beyond their control. One of the reasons that were cited in the research is job loss. This was cited by 34% of the respondents, while 25% cited health challenges as their primary reason for retiring early. As an entrepreneur or employee who is willing to persevere and try their best to achieve their dreams, all is not lost. Taking some steps can enhance value and build your business so that you can sell more and retire as you planned or even early.

Creativity is one of the ways that can help you remain open in the current era of uncertainty. As a business owner, try your best to find creative ways that can adapt to the changes in the business environment. One way you can do this is by adding other services that will replace the revenue that has been lost. For example, as a restaurant owner, you can supplement the revenue lot by ordering food and selling them. This will create a new stream of income and increase profits even when other sources of revenue are not doing well enough.

A good rapport with banks is also crucial to businesses. Regardless of the size of your organization, always ensure that you have a good relationship with financial institutions. Having a wrong sense of security will only deceive you, and you will not have anyone to turn to in case things become tough. With the right relationship, you will have someone to run to for loans when the revenue stream dries up, and you need additional funds to keep running. Always ask yourself, is my bank relationship stable? If the answer is yes, then you are in the right place.

Coming up with a transition plan is another approach that you must consider. Just because you are delaying your retirement plans does not mean that you should not establish a transition plan. Take time to build a working transition plan that will not leave your organization in chaos when the right time comes. Most business owners lack a proper transition plan. This leads to a lack of focus on what is needed for a business to operate successfully.