Minority businesses are less likely to have recovered from covid related shut downs, reports the Hill. 

The United States is seeing a disturbingly inequitable economic recovery. One survey found that more than a quarter (27 percent) of minority-owned small businesses remained closed, compared to 18 percent of other small businesses.

Read the article on The Hill

Small businesses should invest in cyber liability insurance to protect their business, reports Forbes. 

Cyber crime against a business can lead to the damage and misuse of sensitive information. If this happens, recovery costs can mount and include specialized repairs and legal fees.

Read the article on Forbes

According to CNBC, Facebook is boosting women and minority owned small businesses by buying up their outstanding invoices. 

Facebook this week announced a $100 million commitment to a program that supports small businesses owned by women and minorities by buying up their outstanding invoices.

Read the article on CNBC

Starting a business from scratch can seem daunting, but these eight steps can help get your business going, reports Entrepreneur. 

We do amazing, meaningful things every day, but in small increments. We build a life, a family, a career, a worldview, a legacy — all in bite-sized pieces that are manageable in the moment, yet impactful in the long term. 

Read the article on Entrepreneur

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.

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.

Small business owners depend on profits to keep their businesses running. However, like any adventure, operating these kinds of companies comes with its challenges. Fluctuating profits and losses are just some of the things you will face. With these problems, you must always find a way to turn your challenges to your advantage and profit from them. Increasing the profits for your business does not require drastic measures like raising the prices for your products or services or reducing the number of employees. Instead, you need to implement small changes and tweak a few areas of your business to give it a boost. Here are some tips for increasing profits in your small business.  

• Change your operating procedures

If you want to generate more sales, you have to ensure money is not wasted on too many expenses. Minimize unnecessary spending and increase sales by offering new goods and services to complement your current offerings. For instance, if you run a gym, you can sell supplements to complement your services. You can also incentivize new customers by giving them discounts, special deals, and short-term giveaways. Use relationship-based sales to get your customers coming back by taking advantage of monthly or yearly subscriptions. Minimize expenses by eliminating redundancies and auditing administrative functions. You can also outsource some tasks to save money.

• Engage the existing customers

An existing customer is worth ten you are looking for, and you must therefore ensure you take good care of them at all times. It costs ten times as much to attract a new client than keeping an existing one, meaning you should do all it takes to keep all your customers. Therefore, you must spend more marketing dollars towards the existing customer because it gives you a maximum return on investment (ROI). As you reach new customers, never undervalue the existing ones in your marketing plan. Engage your current customer and always keep in touch with them. Collect their data and leverage loyalty programs, special discounts, and events to keep them satisfied.

• Maximize your cash flow

A stable flow of cash is good for the running of your business. Ensure your cash flow is maximized by offering pre-paid payment plans and offers for your clients. For example, instead of a one-off gym fee of $5 per session, offer a retainer plan worth $40 for a week. Although the amount may be less, you will have the advantage of locking your client and ensuring you engage him in the long term. Although it may appear as if you are making a loss with this method, it builds a good relationship with the client and stabilizes your cash flow.

• Invest more in marketing

Marketing is the only way you are going to get more customers. As such, you must put more resources into marketing to get more customers. Grow your reach by using low-cost digital strategies such as social media platforms like Facebook, Twitter, Instagram, and Snapchat. Use other channels like search engine optimization and email newsletters to reach potential clients and increase your earnings. According to research, 78% of all local mobile searches lead to purchase. Therefore, you must take advantage of this to increase your profits.

• Keep your employees happy

Employees are what keeps your small business running. They are a critical component without which you will face a challenge in delivering services. Avoid the cost of hiring and rehiring new employees by retaining your workforce and making them happy. Offer them reasonable incentives to keep them engaged and motivated. Ensure your employees are trained to enable them to offer quality services. Whenever possible, increase their pay and build a friendly environment suitable for work.

Change is something that does not excite many people. Yet, we must be embraced if organizations are to keep up with the changing times and marketplace. While many people talk more about the management of change, it is a topic that is easier said than done. It is a process that eludes many organizations. In some instances, failure to manage change has made some companies obsolete and kicked them out of the market altogether. So, how can leaders manage change successfully, considering people are not always excited about it? Here are the best pitfalls you should be careful about when managing change in your organization.

1. Taking too long to communicate

Communication is a critical aspect of a business. However, many managers often delay with news concerning change with the belief that they are protecting their employees from stress and disruption of the workplace. Sadly, the longer you keep your team in the dark, the more the rumors spread. This will make it difficult for the employees to get the messages you want them to hear regarding change and why it will be good for your organization. The best way to approach this topic would be to bring the employees into the loop by sharing as much information as possible and encouraging them to ask and share their concerns and opinions.

2. Overwhelming your staff with information

Although communication is crucial in managing change and exemplary leadership in general, you must carefully choose what should be shared with your staff and how much information or details you share. Providing too many details or updates about the change may affect your employees' attention, thus affecting their concentration. Instead, you should only share the information that is most pertinent to your employees. Begin by understanding the basics, such as when the change will begin, why it is necessary, and how it will affect the business.

3. Failure to focus on the benefits of change

As good as the change is intended to be, even the positive change can still hurt your employees. Therefore, if you don’t explain the benefits of the intended change to your employees throughout the transition process, you will likely struggle to get the support for the intended. Furthermore, failing to explain the benefits of the change will give you a hard time in the post-implementation stage because the employees will be hesitant to accept what they do not understand. Regardless of the type of change, your small business intends to implement, be clear about the potential positive outcomes to your staff.

4. Lack of communication during the post-implementation stage

When it comes to managing change, the mere fact that you managed to implement it on time does not mean that everyone is with you and is confident about it. In fact, your small businesses may face a rough time in the next few days, weeks, or even months trying to navigate, as employees might take time getting used to the new state of things. During this time, the only remedy should be communication. As a leader, ramp up communication with your staff and ensure that they are part of the change from the word go. Failing to ease change management during this stage through proper communication can be disastrous. As such, always make sure every process is understood during the post-implementation phase. Establish what your staff needs and offer training where necessary to clarify areas that are not clear. You can also engage professionals to give you extra support since change requires the involvement of many players. 

 The year 2020 was a year of turbulence never witnessed before in human history. For business owners, the pandemic and the effects it left were a nightmare that left many organizations struggling to remain operational.  The year signified changing times as business owners had no option but to look for new methods of remaining operational at a time when the sources of revenue were cut, and demand for many items was significantly hit. As we begin a new era where the pandemic is slowly becoming part of us, you will need additional measures to remain standing. Here are ways that you can step up your small business for recovery post-pandemic.

1. Build lifelong relationships

Relationships in business are critical. You cannot achieve this unless you get your service provision or products right. Start by treating all your customers regardless of their backgrounds right. Build lasting relationships with potential clients, customers, and your team. If you have a good product or service and a strong relationship with everyone, you will make lifelong customers, and of course, revenue sources will increase. Putting people first is the best way to invest in your business because this will build strong relationships. Make sure your customers feel heard and appreciated.

2. Identify and focus on your customer

Your business can never thrive if you don’t identify who your customer is and focus on them accordingly. Apart from knowing those who have been with you through thick and thin, identify the potential customers and customize your products or services to suit their needs. Identify your core demographic and focus your marketing strategies and efforts directly on them. Depending on the product or service you are offering, try as much as possible to appeal to the customers regardless of their demographic. Gather as much data as possible to know their likes and dislikes and design your marketing strategy to suit their needs.

3. Listen to your customers

Customers are the backbone of your business. Therefore, listening to them is the beginning of a strong relationship and growth. If giving an ear to your customers has never been one of your traits, perhaps 2021 is the perfect year for you to start doing so. Doing this will help foster the loyalty of the customers to your business and eliminates bad publicity. Comments from customers can also help your organization’s innovativeness. There are many ways of listening to your customers. You can see their social media comments, comments from your blog, calls, or even notes that some of them might leave after purchasing a product or a service.

4. Take advantage of social media, blogs, and other online platforms

In case you thought things have changed, social media remains one of the critical ways to reach your customers and market your product or service. You must take advantage of platforms such as Facebook, Twitter, Instagram, and Pinterest, among others, to market your products or services. These platforms have never been useful like they are today, considering the effect of the pandemic on face-to-face interactions. Develop an excellent social media strategy and develop social media ads based on the strategy you have developed. It will also help if you find people or influencers who specialize in these platforms. Blogs are also informative to the customers, and 2021 is the time you need to consider them in informing your customers on various products or services you offer.

Although 2020 has been a tough year for many businesses, you can still turn the tide in your favor this year. If you focus on the needs of your customer and change your strategy to suit their needs, your business can survive difficult times without a doubt.

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.