According to the research data analyzed and published by ComprarAcciones.com, Amazon Prime Day sales 2020 amounted to $10.4 billion. Compared to 2019 when sales totaled $7.16 billion, there was a 45% increase.

Based on a report from Edison Trends, Amazon had a market share of 91.6% of online spending during the first 30 hours of the event. Walmart had a 3.4% share while Best Buy had 3.0%.

eCommerce Sales to Rise by 32.4% to $794 Billion in 2020

The eCommerce giant is estimated to have sold over 260 million items. That was a 47% increase from 2019’s unit sales of 175 million. Amazon Prime members saved $1.4 billion. small and medium-sized businesses (SMBs) had a field day, selling goods worth more than $3.5 billion. Compared to 2019, they posted a 60% increase in sales and accounted for a third of all sales during the event.

According to FactSet, Prime Day’s sales plus the holiday rush sales could push Amazon’s Q4 2020 revenue to top $100 billion for the first time. But Amazon is not the only beneficiary as other large US retailers saw online sales in the US rise by 76% on Day 1 of the event.

Moreover, eMarketer predicts a 35% year-over-year (YoY) increase in overall US eCommerce sales to $190 billion in November and December 2020. That would more than double the 17% increase posted during a similar period in 2019.

Lastly, according to eMarketer, the total US eCommerce sales in 2020 will reach $794.5 billion, up by 32.4% YoY. In contrast, brick-and-mortar retail sales will decline by 3.2% to $4.7 trillion. However, due to the strong eCommerce growth, retail sales overall will remain flat. The top 10 eCommerce retailers in the US will account for 63.2% of all online sales in 2020, up from 57.9% in 2019.

New survey from Capital One finds that small business owners remain optimistic about their future, reports Tech Republic. 

It’s likely that optimism buoyed many small business owners (SBOs) to start and build their businesses to successful heights.

Read the article on Tech Republic

According to the Colorado Times, there are some tax saving steps small business owners can take before the end of the year. 

If you own a successful small business or professional practice, it is not (yet) too late to make a last-minute move to save big on your 2020 tax bill . . . but time is running out.

Read the article on Colorado Times

Many small businesses are fretting because they still don’t have guidance on how the PPP Loan Forgiveness program will work, reports CNBC.

Time is running out for millions of small business owners on Main Street. It’s not just another round of cash that they need from Washington to avoid contagion.

Read the article on CNBC

The COVID-19 pandemic is putting people out of work, slowing down lots of industries, and causing businesses to close. But at the same time, an uncertain chapter in America’s economic history may provide opportunities for individuals looking for a fresh start – or a soft landing.

Nearly half of small business owners in the U.S. are 65 and older, and a good number are considering selling their business rather than putting their resources and energy into bouncing back from the recession. But isn’t an economic downturn an inopportune time to sell a business?

Not necessarily, says Terry Monroe (www.terrymonroe.com), founder and president of American Business Brokers & Advisors (ABBA) and author of Hidden Wealth: The Secret to Getting Top Dollar for Your Business.

“Some think due to the current difficult times many businesses are having that they wouldn’t be able to get a reasonable sale price,” Monroe says. “And they worry that  they’ll have to delay retirement for several years because of COVID-19. But the reality is, there are lots of people, including the unemployed, looking to reinvent themselves and for a chance to run their own business. Investors with plenty of money are always around looking for good opportunities.

“The baby boomers who own many of these businesses are burned out and want to get out. But small business owners in general often don’t realize all that is required to achieve a successful sale. Done the right way, selling can result in owners walking away feeling they got good value for all they put into their business.”

Monroe says owners should think about the following factors when considering putting their business on the block:

• Ask yourself why. “Selling a business can initially be an emotional consideration, but one has to drill down to the reality of why they want to sell and why it would make sense,” Monroe says. “Burnout is a common reason. If it’s affecting health or company performance, it’s time to get out. Another common factor is the inability to expand when necessary – the owner doesn’t want to incur the added debt relative to their age.” Other reasons owners decide to get out, he says, include lack of a family succession plan, too much disruption in the particular industry, and hitting a wall in terms of profitability.
• Put together a professional team. “The selling process is very stressful,” Monroe says. “You can manage that by putting together a team of professionals who will guide you through it.” The team should include an accountant, a mergers and acquisitions specialist, and an attorney, in that order, he says. “You’ll hear business owners brag about the money they saved in fees because they did the negotiations themselves, when in reality they ended up leaving considerable amounts of money on the table,” Monroe says.
• Know if you’re selling too low. How do you know if you are selling too low? Do the research before you decide to sell your business. “Finding out what a business like yours is selling for in the marketplace is not going to be very difficult in the internet age,” Monroe says. “In the end, you should confer with a professional who understands your industry and can provide data to find your business’ worth in the current climate. Don’t over-focus on the price. What you should focus on is how much you would put in your pocket when the sale is complete.”

“Selling a business involves considerable thought and performing lots of work with an unknown timeline,” Monroe says. “But doing it right can lead to the reward one deserves.”

Terry Monroe (www.terrymonroe.com), is founder and president of American Business Brokers & Advisors (ABBA) and author of Hidden Wealth: The Secret to Getting Top Dollar for Your Business.  Monroe has been in the business of establishing, operating, and selling businesses for more than 30 years. As president of ABBA, which he founded in 1999, he serves as an advisor to business buyers and sellers throughout the nation. His knowledge and expertise in multi-store operations and sales has led to many multimillion-dollar transactions. As an expert source in the convenience store industry, he writes a routine “Financial Insights” guest column for Convenience Store News and has been featured in numerous publications, including The Wall Street Journal, Entrepreneur magazine, CNN Money, and USA Today.

As a small business, the coronavirus pandemic has presented countless challenges mainly as a result of lockdowns and social distancing restrictions. This has forced governments to come to the rescue by providing funding and tax breaks. Apart from the government, other organizations have also stepped in to help small businesses to survive and keep offering services during and after the virus. However, the biggest help for small business owners comes from the IRS in the form of tax credits. Some of the benefits that the IRS has promised to offer include new credits for the employers that include the employee retention credits and credits for paid sick leave and family leave. With these credits, you can save your small business from the effects of the pandemic while ensuring that your employees are protected as well. Here are some of the tax credits that can help you and how they work.

Employee retention credit

Employee retention credit is a refundable payroll tax credit that is paid retained to employees between March 13 and December 31, 2020. It is available for employers whose gross receipts decline compared with last year or those that have to shut down entirely or partially due to the orders by the government.  This credit amounts to 50% of as much as $10,000 in qualified wages paid to the employees. This includes planned expenses. However, due to the $10,000 wage cap, the maximum amount of the credit is $5,000 per employee. This package is applied using the employer’s share of Social Security and railroad retirement benefit taxes. However, since the amount is refundable, employers can refund even if it exceeds the taxes owed. For an employer to receive this credit and request an advance in the form of a check, they can reduce the amount of federal taxes that they are depositing.

Credits for paid sick leave and family leave

This is a new relief that provides options for the employees that get the coronavirus, those who must care for another person with the coronavirus or those who have to care for kids because their daycare or schools have shut due to the coronavirus pandemic. The employers that pay out the needed sick leave or family leave credits receive a credit for the full amount that is paid out. The circumstances under which employees qualify for the paid leave include:

• Those who cannot work due to quarantine or because they are suffering from the coronavirus symptoms or are waiting for diagnosis are eligible for up to 10 days of paid sick leave. The maximum payment is $511 a day, which translates to $5,110 for the ten days. 
• Employees that cannot work because they are taking care of a relative or a friend with coronavirus. It is also applicable to employees whose children become unavailable due to a coronavirus-related reason. Both these groups of employees are eligible for a $200 maximum payout daily and $2,000 in 10 days. 
• Employees who cannot go to work or work because they must attend to their children whose schools or daycare are closed due to the coronavirus-related issue also qualify for paid family and medical leave for up to 10 weeks. These employees qualify for up to a maximum of $200 daily and $10000 in 10 days.

As an employer, you can claim the entire amount paid out for this leave and any other health plan expenses. Please take advantage of these credits and their availability as this will make the difference in keeping your small business operations and keep critical members of staff on the payroll even when they are not working. This will be a win-win for the employees, the government, and your business in the long run.

Customers today want customization. From startups to big brands, most businesses today are providing their customers with unique options to personalize their products. The increased demand for mass customization is changing the nature of many industries, while also providing a new way to extend product lines and increase sales.  

Founded in 1965, American Cutting Edge (ACE) is an Ohio-based, privately held, family-owned company that specializes in manufacturing industrial knives and razors. Over the years, the company grew due to our ability to manufacture custom products to fit our customers’ needs. The ability to offer custom industrial knife and blade design improved the customer experience and satisfaction and allowed American Cutting Edge to become a leading brand in all things knives and blades. In fact, a third of our sales today come from custom requests.

From the beginning, American Cutting Edge understood that customer experience is a reflection of a company’s internal processes. Just as customers demand an effortless experience from the products they purchase, they also expect the same in their business relationships. As the business continued to grow, we needed to ensure profitability, growth and foster a culture of continuous improvement.

Streamlining with a Modern Cloud Platform

During the process of reorganizing three separate businesses into one, the ACE management team decided it was time to streamline divisions in order to prevent internal siloes. By modernizing finance software with Sage 100cloud, ACE now has the ability to support finance, accounting, sales, purchasing, and warehouse operations seamlessly across multiple lines of business and place more focus on our customers. Sage has provided American Cutting Edge with significant business value through savings in time and resources.

Shortly after ACE implemented Sage 100, we attempted to have the software conform to our prior processes. However, this revealed how broken some existing processes were and didn’t make for the best use of the software. This required us to take a step back, re-evaluate our processes and use of the system, and reformulate some key processes. By doing so, we were able to establish best business practices that more effectively leveraged the capabilities of Sage 100cloud.

Improving Processes and Increasing Visibility

Through well-defined processes and a focus on data integrity, American Cutting Edge has been able to extend our visibility far beyond financials. For sales, having visibility into daily, weekly, and monthly performance metrics is critical. We set clear sales goals, and by using Sage more effectively, our teams can now publish a Daily Sales Report (DSR), which shows goals, bookings, shipments and margin by specific salespeople, giving a 360 view on our operations, from sales to the shipment of the product. This data is used to produce a monthly trend and pace report that gives the company a full view of revenue by salesperson.

Through the introduction of automated processes and well-defined best practices, the Sage platform provided us with real-time visibility, a strong data-driven culture and an increase in efficiency. By implementing Sage 100cloud at American Cutting Edge, we were able to:

• • Reduce administrative personnel from seven full-time to three full-time and one part-time saving more than $100,000 annually
• • Reduce excess inventory
• • Reduce cash conversion cycle by nearly half

Sage 100cloud has allowed American Cutting Edge to increase its focus externally, enabling us to build a strategy centered around how we can make the customer experience more effortless. Customers today expect that treatment and if a company can deliver it, your business will be at a significant competitive advantage. In order to achieve this, organizations have to look inwards. By deploying the Sage 100cloud system more effectively, our organization has become more effective and efficient. Understanding the needs and challenges of their team members and the organization as a whole was critical to the improvements as was getting the users involved in the solution creation process.

Gregory Billhardt, President and COO at American Cutting Edge

If you’re not familiar with accounting or financial statements for a company, just looking at them can be intimidating. Even once you’ve figured out things like gross margin, cost of goods, and cash on hand, there are other line items that will still cause you to scratch your head, like amortization.

What Is Amortization?

Amortization can be a useful tool, but it’s also an abstract concept. While it’s a very tangible line item, it represents spreading a one-time payment over time which may feel counterintuitive to accounting practices that track expenses in real time.

Amortization doesn’t appear on a cash flow statement because the cash is typically laid out up front. Instead, this line item is found on the balance sheet. Amortization is a company’s way of showing the value of a (usually large) one-time payment that represents a benefit for a long period of time.

Understanding The Abstract

For instance, if your supplier has a great idea for a new product of yours, you may want to buy the rights to that intellectual property from them. There’s not a physical ‘thing’ that trades hands, but the IP is still worth what you and the seller agree it is worth. Continuing with our example, if you estimate that the IP is going to be valuable to your company for 5 years, that is how long you would amortize the payment to the seller. So, if you paid $50,000 for the IP, you would have $10,000 amortized on each of your next 5 years’ balance sheets.

So why doesn’t that $50,000 you paid appear in cash flow? Shouldn’t that appear as a $50,000 expense on all of your financial statements? The short answer is, ‘no’. It should appear on your cash flow for the period that you spent the cash. You no longer have the $50K cash, so that needs to be accurately represented because cash is king, and if you don’t keep good track of cash on hand, your balance sheets can look flush even as you’re struggling to cut payroll.

Putting It To Good Use

As long as you keep your eye on your cash flow, Amortization is a critical tool for measuring the health of your company. Amortizing these 1-time spends across the useful life of the asset helps level out how your business is doing on your balance and income statements.

Amortizing the $50,000 spent on the IP in our example above across all of your monthly income statements helps show how much this new product is adding to the top line, and then how much is being depleted from your bottom line by the cost of the IP, month over month or year over year.

This also gives your management team a powerful tool to know when to pull the lever on buying new trademarks, license agreements, or intellectual property, or when to hold fast so that you don’t over-leverage yourself with every ‘great’ idea that comes your way. If you are already over-budget on amortization because your R&D team got overzealous in buying up IP, you know it’s time to pump the brakes until some of that spending shows in your finances as payments completed, or fully amortized.

Small business owners have a lot in their plates. From trying to find a market for their products or services to attempting to woo a new customer to join their small customer base, being a small business owner is like signing up to be ever busy and aggressive. Because you may find yourself working every day of the week, you may end up mixing things or forgetting important work altogether. Contrary to the misconception by many small business owners that the smaller the organization, the lower they need a strategic plan, your SME requires a strategy regardless of its size. A strategy can help you know what you have done well, what needs more of your attention and whether your daily operations are growing your company. Here are some of the leading reasons why your small business requires a strategy.

• For organization

As a small business, setting objectives and working in sync is a critical recipe for success and accomplishment of goals. If you lack a marketing strategy, for example, working between members of the marketing department and yourself can be hard to manage. For any team, a strategy makes goals clear and gives team members a blueprint on how different things within the organization should work.

• Allows organizations to adapt to market changes

Coming up with a strategy for your small business helps you build organizational agility. With a properly designed business strategy, you can always view the objectives of your company and evaluate how you can use the existing opportunities and avoid potential threats. A strategy is a form of a roadmap that guides you on how you can attain specific goals and objectives. It also allows you to track changes and innovations that may help you maneuver the tough business environment.

• Strategy enhances performance

Productivity depends with how organized you are. Without a well-stipulated order of things, it becomes hard for you to evaluate the tools that you will use to achieve your needs or those that works best for specific products, needs or services. With a strategy that allows you to analyze customer data, you can determine the best market and you target demographic. A strategy allows a business to manage and maintain marketing, maximize return on investment for decisions made and increase productivity.

• For management of financial resources

A strategy for any small business must at all times include financial planning as well as pricing of goods and services. Only so will you be able to understand your margins and what you are operating on. With a small business strategy, you will always be up to date on the amount of money there is and a plan for proper distribution.

• Growth

A proper strategy is critical for the growth of your business in many ways. For example, with no strategy, it is highly likely that your business will be caught in a vicious circle where you can successfully bring more customers, orders and clients than continue focusing on new customers while leaving the old ones sad. Eventually, the customers disappear, and you will have to start over again. With a strategy, however, you can balance the needs of new and existing customers and come up with a way of serving the interest of all of them.

• Strategy enhances workforce collaboration

Just like customers, employees are an important part of any organization. A strategy provides a clear picture for workforce to be allocated correctly. Strategy allows you to control your employees with regard to the workload and at the same time, make sure that the priorities of the company are kept in mind. Various tools can be used to assess strategies, analyze them and decide tasks that should be done next.

The year 2020 can’t end quickly enough for most small business owners. Across the country, the pandemic forced many of them to close their operations temporarily – or permanently – and the continued economic uncertainty threatens to kill the ambitions of entrepreneurs who planned to launch businesses but now must put their dreams on hold.

None of that bodes well for the overall American economy, says Andi Gray, president of Strategy Leaders (www.strategyleaders.com), a business consulting firm.

“Small businesses make up 50 percent of the gross-domestic product and also employ half the workforce,” she says. “What happens to them determines what happens to the overall economy. We as a country cannot afford to fail them.”

Gray points to the 2008-11 banking crisis as a disturbing example of how a national crisis can sabotage entrepreneurship. In 2008 , for the first time, the number of business starts fell below the number of business closures.

“In other words, more businesses were killed off than were launched,” she says, ”and it wasn’t a one-time event. The problem continued on for years.”

The ripple effects? By 2009 small business contributions to GDP fell rather than grew. By 2010 the economic contribution gap between large and small businesses widened four-fold as small businesses struggled to keep up with their large corporate competitors. People lost their jobs, exports dropped, taxes fell and economic opportunity disappeared as entrepreneurs fought to recover. It took over five years for the small business community to get back on track, Gray says. But the damage was already done. By 2015, the U.S. was ranked 12^th among developed nations in terms of startup activity.

She worries such lingering effects could happen again – and be significantly worse this time.

“Today’s COVID crisis is far larger and deeper than the 2008 crisis,” she says. “I would not be surprised if it takes far longer than five years for the small business community to get back to producing GDP and employment numbers we took for granted at the beginning of the year.”

In the meantime, small business owners hit hard by this latest recession must find ways to weather the storm. Gray offers a few suggestions for how they can do that:

• Stay energized and focused. The single biggest determinant for survival of any small business is the commitment, ambition, and drive of the owner, Gray says. “If you are feeling worn out, take time off to recharge,” she says. “Keep your eye focused down the road, on what’s way ahead, and don’t waste too much energy and sweat trying to control what’s happening right in front of you day-to-day.”
• Take care of the finances. If money is in short supply, investigate sources of capital. Put together a bankable plan that justifies increased investment and provides guidance on how best to use funding to recover, expand and weather future challenges, Gray says. “Talk to your banker, the SBA, reputable SBA lending consultants, and private investors to find out what kinds of capital might be available,” she says.
• Figure out how to play the hand they were dealt. Small business owners need to get creative and innovative, Gray says. “Rebuild as you protect cash flow,” Gray says. “Find suppliers to replace the ones struggling to perform. Rethink your business model and evaluate customer viability.” In addition, look for new markets to add size and profits, implement processes to cut out waste, and transition more and more customers to internet communication and ecommerce buying solutions. “Decide what size business will be right for you in the future and lay out a plan to get there,” Gray says.
• Pay attention to employees. As scared as small business owners may be about what the future holds, many of their employees are even more frightened. “After all, you have the resources of your company to use to build solutions,” Gray says. “Employees who live paycheck to paycheck may be running out of options and wondering how long they can hold on – or how long you’ll be able to let them hold onto their much-needed jobs.”

“The good news is that small business owners are known for being nimble, flexible, and resourceful,” Gray says. “Many of them are finding new opportunities by solving problems that didn’t exist, or weren’t priorities, at the start of 2020.”

Andi Gray is president of Strategy Leaders (www.strategyleaders.com), a business consulting firm. Gray’s career started in sales, marketing and new business development at Xerox, American Express and Contel. Gray earned an Executive MBA from Columbia University while conducting research on success and failure drivers for entrepreneurial businesses. Gray writes a weekly column called “Ask Andi” in which she provides practical advice to business owners. She also authors a monthly column in Chauffeur Driven Magazine. Gray is also the co-founder of the networking group BOHCA (Business Owners Hemp and Cannabis Association), where she helps industry specific owners grow their business through strategic planning.

According to Cynthia Spraggs, this recent NPR article isn't about Zoom meetings at all. It is about whether home-based work is productive or not. "There are a lot of spurious statistics from low sample sizes. If employees are fatigued by being on video all day (honestly what a nightmare), you can make this better by reconsidering the webcam," says Spraggs.

"Clearly, if you’re a company mandating Zoom meetings, that’s the first issue – because you are mandating people be on camera and that just isn’t a productive way to work – it is also distracting to have to stare at a bunch of talking heads."

"The Vocon study surveyed 50 company executives who employ over 485,000 people. If these are average 10,000 person firms, they are also not representative of the global firms and may not have been set up for virtual work at all – meaning their results may have been worse.  A better question would be to ask – which sectors and company sizes are best-suited to virtual work? What percentage of employees can work remotely full time? What does “loss in productivity mean”? If it means that projects are failing, that’s because you cannot manage remote teams using brick and mortar methods or with a bunch of people totally exhausted by video calls. You just can’t. You need people to keep teams accountable and on track – whether they are working from distributed offices – or from distributed homes."

"Of course, you are going to see lower productivity from a completely unplanned migration from the office to the home for work.  And the implementation of video calls for everything. Extroverts are going to be miserable, and on top of this, people are not only working from home but home-schooling children – with home environments not designed for optimal work."

"The other study by LUCID doesn’t really provide compelling evidence for virtual work and productivity.  63% of employees did not rank in-person team collaboration as number one. And only about 10% of workers missed face time with their team. Only 18% don’t have dedicated workspaces.  Interesting.  I guess it is how you read the data. The reason they are not creative, is that they don’t have non-meeting time booked into their calendars – and likely don’t use online creative tools to figure things out.  Also, they are likely completely exhausted by being on video all day."

"When asked what would be most exciting about returning to the office, 37% of employees ranked in-person team collaboration as number one, twice as many as the next option (a dedicated workspace without at-home distractions). Nearly 1 in 4 remote workers says that working from home has hurt their creativity, and almost half of that group (46%) identified less face time with their team as the number one cause."

Cynthia Spraggs (www.virtira.com) is the author of How To Work From Home And Actually Get SH*T Done: 50 Tips for Leaders and Professionals to Work Remotely and Outperform the Office. She is CEO of Virtira, a completely virtual company that focuses on remote team performance. Before taking leadership of the company in 2011, Spraggs worked with large consulting and tech companies while completing her MBA and research into telecommuting.

Business plans are among the most critical components of any business. Unfortunately, although having a business plan is critical, many businesses have plans that are not worth showing to potential funders or printing at all. Most of these poorly thought business plans have some things in common, as shown below:

1. The plan is poorly written

Just like all serious official writings, spelling, grammar, punctuation, and writing style are crucial when it comes to writing your business plan. Although investors invest in good dreams and not English grammar, proper writing will often show how serious you are with your business and details. When simple things such as spelling and grammar are not done well, investors will immediately have second thoughts on how you can perform in most technical parts of operations such as finance. Before presenting your business plan, go through every line and sentence or even find someone strong in English to help you.

2. Poorly defined target customers and clients

Defining your intended audience and understanding how your product or service will be valuable to them is a core role of a business plan. This often includes segmenting your target customers and how the products and services you offer will satisfy their diverse needs. Sadly, many business plans generalize their target customer definitions. Failing to define the needs clearly will make your plan complicated and ambiguous.

3. Sloppy presentation of the plan

Once you have written your business plan perfectly, you should prepare to present it correctly. Avoid inconsistencies such as missing page numbers, charts, tables, and headings as this is likely to irk investors. Before presenting the plan, look for someone to proofread it for you and correct the errors that arise.

4. Unrealistic projections

Although a business plan should convince potential investors that it can generate profits, unrealistic projections should be avoided at all costs. This is a mistake that many young entrepreneurs make. Most business plans make false assumptions about market size, competition, profit projections, and financial risks. Although projections are all about the unknown future, they should be reasonable. Base your analysis on market trends and past revenue and development costs instead of imaginary figures.

5. Incomplete business plan

Every business plan must be complete and accurate. A complete business plan must clearly explain products and services, sales and operations, and marketing strategies. It must also show competitors, management teams, and sales strategies as a minimum. Unfortunately, most businesses fail to include these essential parts or are not as elaborate as they should be. Your plan should have well detailed financial projections, cash-flows, and income statements as well as balance statements for at least three years. This will give investors the confidence they need.

6. Vague business plan

A business plan should be straight and to the point, unlike a novel, which can be confusing and hard to understand. If your business plan is too hard for an average person to understand, then you should consider rewriting it. If there are some areas that are secret and that carry highly confidential material that cannot be shared with the public, show them at the executive summary. For those who want to see such information, they should sign non-disclosure agreements before being given access. In whatever you do, ensure that your business plan is complete and precise for venture capitalists and investors to understand.

Generally, you should always be aware of the common mistakes that people encounter when writing business plans and ensure that you do not fall victim to them. Find a coach who can show you around in case you do not have enough confidence. This will enable you to write a well-thought-of and complete business plan that meets the definition of a well-written plan.

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.