Business Ownership – Page 4 – Susan's Reflections

Know Your Financial Statements—The Personal Financial Statement

The Personal Financial Statement (PFS) is an important document that every business owner should understand. Unlike other financial statements, the PFS reflects the financial health of the business owner rather than the business itself. Many business owners mistakenly believe their personal financial situation is separate from their business’s financial health. However, that is not the case.

A business owner’s personal finances play a crucial role in determining whether a lender will approve a small business loan. Lenders review the PFS to assess if the borrower:

Is managing their personal finances well
Has cash to inject into the business
Has collateral to support the loan

Moreover, landlords and franchisors often require business owners to demonstrate financial responsibility before entering into lease or franchise agreements. Additionally, a PFS is necessary for certain SBA certifications and for securing SBA-backed loans.

Many business owners struggle with understanding how to complete the PFS. To help, I’ll guide you through the process, using the SBA’s Form 413 as the reference. While each bank may have its own version, most will accept the SBA version.

Guidelines for Completing the Personal Financial Statement

Assets:

Cash on Hand and in Banks: Total cash on hand and in your bank checking accounts.
Savings Accounts: Total of savings accounts, including CDs and money market accounts.
Retirement Accounts (IRAs, etc.): Total all retirement accounts. Though this money cannot be used as collateral, it’s still an important asset.
Accounts and Notes Receivable: Money owed to you, such as tax refunds, security deposits, or maturing CDs.
Life Insurance: Include only the cash surrender value of life insurance policies (the amount you’d receive if you cancel the policy, after administrative costs).
Stocks, Bonds, Real Estate, Automobiles, and Other Personal Property: List at current market values.
Other Property and Assets: Includes boats, trailers, collectibles, and jewelry.
Business Ownership: If you own a business, include its value, calculated by summing cash, equipment, and inventory. Enter this as “Other Assets.”

Liabilities:

Accounts Payable and Notes Payable: Includes unpaid bills, outstanding credit card balances, and bank loans (excluding mortgages, student loans, and auto loans).
Auto and Installment Loans: Include the total debt and the monthly payment for auto loans, student loans, or other installment loans.
Life Insurance Loans: If applicable, list any loans against life insurance policies.
Mortgage Liabilities: Include the total debt secured by any real estate, including first and second mortgages and home equity loans.
Unpaid Taxes: List any unpaid income tax, property taxes, and personal property taxes.
Other Liabilities: Include private loans from friends or family, legal judgments, and unpaid child support or alimony.

Net Worth: Net Worth = Total Assets – Total Liabilities

Additional Sections to Complete

Once you’ve filled in the basic table, additional details about your assets and liabilities are required in the sections below.

Section 1: Income

Salary: Include wages or salaries you regularly pay yourself from the business and any other employment.
Investment and Real Estate Income: Provide details of income from investments or properties.
Other Income: This might include disability income, foster care payments, and retirement income (but not alimony or child support).
Contingent Liabilities: Include any loans for which you co-signed, or set-aside funds for contingencies like lawsuits or IRS audits.

Section 2: Loans and Credit Cards

Provide details on all outstanding bank loans, credit card balances, student loans, auto loans, and personal loans.

Section 3: Stocks and Bonds

Provide details on stocks and bonds owned, including the number of shares and their current values.

Section 4: Real Estate

Include all properties owned—both free and clear, and those with mortgages. Use online sources like Zillow to estimate current property values.

Section 5: Other Assets

Describe the assets listed in Accounts Receivable, Other Personal Property, and Other Assets. Include the asset and its value, e.g., “2024 tax refund expected: $1,450” or “2018 fishing boat: $9,000.”

Section 6: Taxes Owed

Provide details on any unpaid taxes owed to the federal, state, or local government. If you’re on a payment plan, include the balance and payment terms.

Section 7: Other Liabilities

Provide details on any other liabilities not already covered in the previous sections.

Section 8: Life Insurance Policies

List the face value of your life insurance policies and the cash value you would receive if you cashed them out. If you’ve borrowed against any policies, include those details here as well.

Be sure to sign and date the form, and include your Social Security Number. If you are married, your spouse must also sign and date the form.

When lenders, landlords, or franchisors review your PFS, they’re evaluating whether you manage your personal finances responsibly, if you’ve taken on too much debt, and whether you can meet your financial obligations. Managing your personal finances well is critical, not only for your own peace of mind but also to demonstrate your ability to manage your business effectively.

Conclusion

The Personal Financial Statement is a key tool in securing financing for your business and demonstrating your financial responsibility to potential partners. By completing it accurately, you’ll be better prepared for any financial assessments that come your way. If you have any questions about how to complete your PFS or need further assistance, feel free to drop a comment below or email me at susan.ball5@aol.com! I’m happy to help you navigate this important aspect of your business finances.

Know Your Financial Statements—Accounts Payable

Most small businesses have a number of unpaid bills at any given time. Inventory has been delivered, but the invoice isn’t due yet. Utility bills arrive two to three weeks before the due date. Retail sales tax has been collected but not remitted to the tax department. Payroll withholding taxes are being held in escrow until it’s time to file quarterly reports. These unpaid bills are known as accounts payable.

It’s crucial to keep track of your accounts payable so you know how much is owed, to whom, and when the bills are due. Managing your accounts payable effectively offers several benefits. A statement of accounts payable will help you achieve this.

Benefits of a Statement of Accounts Payable

Effective Cash Flow Management
Accounts payable should be included in your cash flow statement for the month they are due. This ensures that you’ll have enough cash on hand to cover those bills. It also helps highlight months where a shortage might occur, allowing you to arrange a line of credit to meet forecasted shortfalls.
Avoidance of Late Fees and Interest
Tax authorities impose penalties for late filing of quarterly tax payments and monthly sales tax reports. Banks, utility companies, and suppliers may also charge late fees or interest for bills that aren’t paid on time.
Take Advantage of Discounts
Many suppliers offer discounts for early payment. A statement of accounts payable lets you easily spot vendors offering discounts, so you can ensure bills are paid on time to take advantage of these savings.
Maintain Good Credit and Vendor Relationships
Timely payments are key to maintaining a strong credit score and healthy relationships with lenders and suppliers.
Preparation for Loan Requests
If you need to borrow money or establish a line of credit, lenders will often request a statement of accounts payable. This statement helps them evaluate your level of debt in relation to industry norms and your ability to cover outstanding debts if your revenue declines.

Creating a Statement of Accounts Payable

A statement of accounts payable is essentially a table that includes:

Name of creditor
Account number or invoice number
Invoice date
Due date
Amount owed

Creditor	Acct/Invoice Number	Invoice Date	Due Date	Amount
Bill 1
Bill 2
Bill 3
Bill 4

Tips for Managing Accounts Payable

Managing accounts payable effectively is crucial for maintaining healthy cash flow and good vendor relationships. Here are some best practices to consider:

Separate Regular and Occasional Bills
Keep distinct charts for bills that occur regularly and those that are occasional. This makes it easier to track and manage.
Record Monthly Bills on Your Cash Flow Statement
Include occasional bills in the months they are due, not just the regular ones. This will help you get a clear picture of your upcoming cash flow needs.
Set Up Automatic Payments for Fixed Monthly Bills
Set up automatic payments for bills like rent, loan payments, cell phone bills, and subscriptions that are predictable and have a fixed amount.
Estimate and Adjust for Variable Bills
For bills that vary, like utilities or discretionary expenses (marketing, for example), use an estimated amount in your cash flow statement and adjust for seasonal variations.
Automate Bill Payments When Possible
If possible, have bills go directly to your bank. This simplifies the payment process, especially if you’re using a bill-paying app.
Track Infrequent Bills
For less frequent bills, like insurance payments, set up automatic payments to ensure you don’t overlook them.
Balance Your Checkbook Regularly
Schedule weekly or bi-monthly checkups to balance your checkbook and confirm that all bills have been paid or are scheduled for timely payment.
Forecast Cash Flow in Advance
Predict your monthly cash balances several months in advance to determine if sufficient funds will be available during slower months. If you forecast a shortage, take steps to ensure enough cash is available, like establishing a line of credit or injecting more capital into the business.

Conclusion

A statement of accounts payable is a simple but powerful tool for tracking your bills and maintaining healthy cash flow. By following the tips above, you’ll be able to manage your accounts payable effectively, avoid late fees, and maintain good credit and vendor relationships.

If you have any questions about managing your accounts payable or tips for creating your own statement, feel free to drop them in the comments below. I’d love to help you better understand this important aspect of your business finances!

Know Your Financial Statements—Accounts Receivable

If your business extends credit to customers, understanding and managing accounts receivable is essential. Accounts Receivable (AR) refers to the money customers owe for services rendered or goods delivered, and it’s a critical part of your cash flow. Many businesses—like professional services, utility companies, and wholesalers—work with accounts receivable.

What Are Accounts Receivable?

When you extend credit, you’re essentially allowing your customers to pay later, often within a specified number of days. For example, if you deliver goods or services to a customer, you may allow them 30 days to pay the bill. In this case, you would have an account receivable until that payment is made.

To effectively track AR, businesses use an aging schedule, which categorizes accounts based on how long the payment is overdue. At the end of this blog, I’ve provided a helpful Accounts Receivable Aging Schedule Template. This template outlines what to include in your report, but if you prefer to create your own, it offers a great starting point to ensure you’re tracking the necessary information. Typical categories are:

Current (not yet due)
1-30 days past due
31-60 days past due
61-90 days past due
Over 90 days past due

Why Does This Matter?

An Accounts Receivable Aging Report plays a significant role when you apply for a business loan. Lenders will review this report to assess how much of your business’s sales are made on credit, how it compares to industry norms, and whether there’s a risk of non-collection. Specifically, lenders are concerned about the percentage of receivables that are more than 60 days overdue. If the report shows high delinquency, it could signal poor cash flow management, which might lead to a loan denial.

Why Managing Accounts Receivable is Crucial

Effective AR management is key to your business’s cash flow health. Here are a few strategies to keep in mind:

Measure the Effectiveness of Discounts
Many businesses offer early payment discounts, like “2/10 Net 30,” meaning a customer gets a 2% discount if they pay within 10 days, but the full amount is due in 30 days. If a lot of customers are taking advantage of the discount, cash comes in quicker—but your profit margin takes a hit. Understanding how well your discount terms are working can help balance cash flow with profitability.
Monitor Customer Behavior
Let’s say you’ve had a loyal customer who consistently pays early for the discount, but now they’re paying late or just on time. This could be a sign that they’re experiencing cash flow problems. If so, it’s worth reaching out to see how you can help. Perhaps they need smaller orders, or you can work out a payment plan to keep the relationship strong and reduce your risk of uncollected debt.
Improve Cash Flow Management
By closely tracking overdue invoices, you can promptly follow up with reminders. If certain customers consistently pay late, it might be necessary to put a hold on further orders until they clear their outstanding balance. Proactively managing receivables ensures that cash keeps flowing into your business and reduces the risk of uncollected debt.
Assess and Adjust Credit Terms
If few customers are taking advantage of your early payment discount, it could be time to reassess your credit policy. Maybe your discount isn’t big enough to incentivize early payment. Or perhaps customers need more time to pay based on how quickly they can sell your product. Adjusting your credit terms might help accelerate cash flow without compromising customer relationships.

The Risk and Reward of Extending Credit

Offering credit is an excellent way to attract new customers and keep current ones loyal. A discount for early payment can boost cash flow and reduce the risk of bad debt. But, as with all things in business, extending credit comes with its risks—delayed payments can affect cash flow, and offering discounts reduces profit margins. It’s important to stay informed about industry standards, track your AR regularly, and adjust your policies as needed. Most accounting software has monitoring features that can make this process easier.

Here’s a template for an Accounts Receivable Aging Schedule:

Final Thoughts

Tracking accounts receivable is more than just a financial task—it’s a critical element in your business’s cash flow management. By understanding how to monitor, manage, and adjust credit policies, you can strengthen your business’s financial health and make sure cash continues to flow in the right direction.

Know Your Financial Statements—The Cash Flow Statement

The cash flow statement is an essential tool for business owners and anyone considering business ownership. Unlike the balance sheet or income statement, which show what’s already happened, the cash flow statement is a forecasting tool. It projects future income and expenses over a specific period, helping you see what’s coming down the line.

A typical cash flow forecast is broken down by month and often extends for one or more years. For example, if you’re applying for a commercial loan, the lender will typically request a 24-month forecast.

A solid cash flow statement does three important things:

Demonstrates the profit potential of your business
Highlights the seasonal nature of your revenue
Shows when you might face cash shortages

When Should You Develop a Cash Flow Forecast?

As a business owner, it’s critical to create a cash flow forecast before making major decisions like:

Starting a new business
Applying for a business loan
Changing locations (whether moving from a home office to a rental or expanding to a larger space)
Hiring additional employees
Opening a second location
Introducing new products or services

How to Develop Your Cash Flow Forecast

To create your cash flow forecast, follow these steps:

Identify Your Revenue Streams:
List out all the ways your business makes money. This could include retail sales, consulting services, wholesale accounts, etc.
Estimate Monthly Revenue for Each Stream:
- What does the “average” customer spend?
- How often will purchases be made? Retail sales might happen daily, but consulting services could be more occasional and of a higher value.
  - How will customers pay? Retail transactions are typically paid upfront, but wholesale or service-based businesses may bill customers and expect payment within a set number of days. Make sure to include the revenue in the month you expect to receive payment.
Account for Seasonality:
Some industries see fluctuating revenue throughout the year. For example, retail tends to be slower in the first quarter and peaks in the last quarter. Be sure to include this in your forecast.
Estimate Your Costs:
- Cost of Goods Sold (COGS): How much does it cost to produce or acquire the goods/services you sell?
- Operating Expenses: Fixed expenses (rent, salaries, insurance), Variable expenses (utilities, marketing, supplies), and Occasional expenses (licenses, subscriptions, property taxes)
- Non-Operating Costs: These include investments in new equipment, furniture, building improvements, utility deposits, and loan payments.
Include Your Owner’s Draw:
Your own payment, called the Owner’s Draw, should be listed at the bottom of your cash flow statement to show that you’re paid after all bills are covered.

Cash Flow vs. Income Statement

The cash flow statement and income statement are different in a few key ways:

Loan Payments: The cash flow statement includes the entire loan payment (both principal and interest). The income statement, however, only includes the interest portion of the loan, as that’s the amount that’s tax-deductible.
Depreciation: While depreciation affects your income statement by reducing taxable income, it doesn’t appear on the cash flow statement because it doesn’t involve an actual cash outflow.

Why Accurate Estimates Matter

It’s essential to estimate revenues and expenses as accurately as possible. Your cash flow forecast will help you decide whether to start or expand your business, assist lenders in evaluating your loan application, and highlight any months where your revenues might fall short of covering expenses. By recognizing potential cash shortfalls ahead of time, you can make a plan to cover those gaps—whether by borrowing, saving during busier months, or investing your own funds.

Get Started with Your Own Cash Flow Statement

I’ve included a cash flow statement template to help you create your own forecast. If you’d like an editable version of the worksheet, just email me at susan.ball5@aol.com, and I’ll send you a copy.

How Small Businesses Can Thrive in 2025: Focus on Profits, Not Just Growth

As a small business owner, you’ve probably heard that the key to success is always growing your sales. You may focus on acquiring new customers, retaining current ones, and increasing customer spending. While these strategies can drive growth, they often come with higher costs—more marketing, more inventory, and more staff to support a larger customer base.

However, after years of rising costs and increased minimum wages, many small businesses have seen their profits shrink rather than grow. If this sounds familiar, then 2025 might be the year you shift your focus from growth to profitability.

Now is the perfect time to review your finances and make changes that can boost your bottom line without having to push for more sales. Here are some actionable strategies to help you increase profits and run a more efficient, sustainable business.

1. Reevaluate Your Prices

In the wake of inflation, many small businesses have hesitated to raise prices, fearing they might lose customers. But with inflation slowing and consumer confidence growing, it might be time to revisit your pricing strategy. Consider whether your prices are truly covering your costs and generating the profit you need.

Don’t be afraid to adjust prices where necessary to reflect rising operational costs. Just be sure to communicate any changes clearly to customers and justify them with the value you provide.

2. Cut Unnecessary Expenses

It’s easy for costs to accumulate over time, especially with subscriptions, memberships, and services that no longer serve you. Take a hard look at your expenses and identify areas to cut back.

Subscriptions & Memberships: Do you still use all the tools and services you’re paying for? If not, cancel or downgrade them.
Automation & Outsourcing: Could you automate repetitive tasks or outsource certain functions? This could reduce labor costs while increasing efficiency.
Supplier Negotiations: Talk to your suppliers about negotiating better rates, especially if you’ve been a loyal customer. Every little saving adds up.

3. Deliver Exceptional Customer Service

It’s cheaper to retain a customer than to acquire a new one, so it’s essential to focus on the customers you already have. Excellent customer service builds loyalty, encourages repeat business, and leads to referrals.

Be proactive in ensuring that your current customers have an outstanding experience every time they interact with your business. From personalized service to prompt responses, make sure they know you value their support.

4. Focus on Your Best Customers (80/20 Rule)

The 80/20 rule is a powerful principle for many aspects of business—and that includes your customers. It’s likely that 80% of your profits come from just 20% of your customers. By identifying and nurturing these top customers, you can maximize your profits without spending extra time or money.

Use CRM tools or loyalty programs to track customer spending and reward your best clients with exclusive offers, early access to new products, or VIP treatment.

5. Optimize Payment Methods to Save on Fees

Review the payment options you accept. For instance, payment processors often charge hefty fees for credit card transactions. Could you save money by offering lower-cost alternatives like direct debits, Venmo, Zelle, or other digital wallets? If you’re using a traditional POS system, it might be worth investigating newer platforms with lower processing fees.

6. Rethink Your Marketing Strategy

Marketing is a necessary expense, but that doesn’t mean it has to drain your budget. Take a closer look at where your marketing dollars are going:

Social Media: Could you achieve similar results using free or low-cost social media platforms rather than expensive ads?
Negotiation: If you’re using traditional advertising (like print or TV), see if you can negotiate lower rates or more favorable terms.
Marketing Tools: Are you paying for marketing tools that aren’t delivering a good return on investment? It might be time to test new, more cost-effective options.

7. Optimize Inventory Management

Managing inventory efficiently is crucial for profitability, especially for small businesses. Overstocking means tying up cash in products that might not sell, while understocking leads to missed sales opportunities.

Consider:

Just-in-Time Inventory: Order only what you need, and aim for timely deliveries to avoid waste, spoilage, or excessive storage costs.
AI & Apps: Use AI-driven tools or inventory management software to track and predict demand so you don’t overbuy or underbuy.
Clearance or Donations: If inventory isn’t moving, consider offering discounts or donating items to free up space and improve cash flow.

8. Manage Payroll Efficiently

Staffing is one of the largest expenses for many small businesses. Review your past sales data to anticipate the staffing levels you need for peak and off-peak times.

Cross-training employees can help them stay productive during slow hours, and ensuring you’re not overstaffed can help save on payroll costs. Empower your employees to take on multiple roles to improve efficiency and reduce the need for extra hires.

Start Focusing on Profitability Today!

By taking these steps, you can position your business for a more profitable year ahead, even if your sales growth slows. Profitability is not just about increasing revenue—it’s about managing expenses, optimizing processes, and building stronger relationships with your existing customers.

Ready to start boosting your profits in 2025? Take a look at your current strategies, make the necessary changes, and watch your business become more profitable than ever.

Engage Your Local Community: 8 Ways Small Businesses Can Build Stronger Connections and Grow

As a small business owner, building strong local connections is crucial for long-term success. Whether you run a local retail shop, service-based business, or any other type of small business, getting involved in your community can help you stand out, build trust, and foster relationships that benefit both your business and your neighbors.

Here are some practical ways to build meaningful local business relationships and grow your business.

1. Join Your Local Chamber of Commerce or Main Street Program

Local business organizations like your Chamber of Commerce or Main Street Program are invaluable resources for small business owners. They offer networking opportunities, training, and even workforce development programs. For example, our local Chamber of Commerce hosts meet-and-greets with elected officials, which is a great opportunity to make connections with local leaders. Main Street programs often organize special events designed to draw more visitors to the downtown area, creating more foot traffic for your local business.

2. Participate in Civic Organizations

Civic organizations like Rotary Clubs, Lions Clubs International, the Knights of Columbus, and Kiwanis Clubs are a fantastic way to get involved in your community. These organizations focus on service, and by becoming a member, you’ll have the chance to connect with other influential people, including fellow business owners, bankers, and local professionals. These connections can lead to valuable partnerships and help you gain visibility within your local community.

3. Support a Cause Related to Your Business

Aligning your small business with a local cause not only gives back to your community but also resonates with customers who share similar values. For example, if you own a pet supply store, consider supporting the local ASPCA or animal rescue efforts. If you’re in the food industry, you might collaborate with local farming initiatives. By supporting causes that align with your business, you’re showing your commitment to your community while strengthening your brand’s reputation.

4. Sponsor a Local Sports Team or Event

If your budget allows, sponsoring a local sports team is a great way to give back and gain local recognition. If sponsoring isn’t feasible, you could volunteer your time or even offer to coach a youth sports team. Parents and families are often loyal customers to businesses that support their kids’ activities, so your involvement can lead to increased community support and visibility.

5. Donate a Portion of Your Profits to Charity

Giving back is a powerful way to show that you care about your community. Consider donating a portion of your profits to a local charity or cause that resonates with your customers. Publicize your charitable efforts by displaying a simple sign in your store or posting about it on your social media. A message like “A portion of all sales goes to support [cause]” can inspire customers to support your business while contributing to a meaningful cause.

6. Promote Local Fundraising Events

Supporting local fundraising events is another great way to get involved. Whether it’s by allowing event organizers to place signs in your store, promoting the event on your social media, or donating items for prizes, your support will help these events succeed—and in return, you’ll boost your visibility within the community. If funds allow, consider becoming an event sponsor for even more exposure.

7. Host Workshops or Classes at Your Business

Hosting workshops or classes at your local business is an excellent way to engage with your community. For instance, a local kitchen store might offer cooking classes to demonstrate how to use their products, while a wine shop could host wine pairing workshops. These types of events not only attract customers into your store but also give you the chance to showcase your expertise and build stronger relationships with your audience.

8. Volunteer in Local Schools

Schools are always in need of volunteers, and your business can make a big impact by supporting local education. You could volunteer your time, donate supplies, or even sponsor field trips. Some businesses take it a step further by becoming patrons of classrooms, helping to fund supplies and activities. Volunteering not only benefits your community but also helps raise your business’s profile in a positive way.

Why Community Involvement Matters for Small Business Growth

Being actively involved in your local community creates opportunities to build trust and foster loyalty among your customers. People want to support businesses that care about their neighbors and contribute to the well-being of the area. By connecting with local organizations, sponsoring events, and volunteering, you’re positioning yourself as a valuable member of the community—something that’s increasingly important to today’s conscientious consumers.

Remember, there are countless ways to get involved, and the connections you make will not only improve your business but also strengthen your community.

Are you involved in any community initiatives? Or perhaps you’re looking for more ideas on how to connect with your local area? Feel free to leave a comment or reach out—I’d love to hear how you’re making a difference and how I can help you grow your small business!

Assessing Your Small Business: Set Goals for Success in 2025

The start of a new year is the perfect opportunity to take a step back and evaluate the health and direction of your small business. Are you still on track to achieve the goals you set when you first launched your business? Are you making the profit you need? More importantly, are you making a living? If you’ve been thinking about growth, now might be the ideal time to assess where your business stands and adjust your strategy for success.

In this post, I’ll guide you through the process of assessing your small business and setting goals that will keep you moving forward in 2025. Let’s get started!

Why Did You Start Your Business?

When you first started your business, you likely had a clear vision or set of goals in mind. As you look back, ask yourself:

What was the original purpose behind starting your business?
Have you achieved that vision?
Is that reason still valid, or have your priorities shifted?

Some common motivations for starting a business include:

Pursuing your passion
Supporting your community
Achieving better work-life balance
Being your own boss

Take a moment to reflect: Has your vision evolved? Understanding whether your original motivations are still guiding your decisions can help you realign and stay on track for future growth.

Assess Your 2024 Goals

Now that you’ve revisited your purpose, it’s time to assess your performance over the past year. What progress have you made, and where could you improve?

Which of your 2024 goals did you accomplish?
Which goals did you abandon, and why?
Are there goals you didn’t achieve that are still important to you?
What can you change to meet these unfulfilled goals in 2025?

Be honest with yourself, and don’t be afraid to acknowledge what didn’t work. Identifying challenges early allows you to make the necessary adjustments for the year ahead.

Setting Your 2025 Business Goals

Looking ahead, it’s time to think about where you want your business to go in 2025. Some common goals for small business owners include:

Increasing revenues
Empowering employees to take on more responsibilities
Making a greater impact on your community
Donating a portion of profits to a cause you care about
Creating new job opportunities
Leveraging AI and technology to improve customer experiences
Investing in professional development for you and your team
Improving processes for managing cash flow and inventory
Cultivating a positive work environment
Achieving a better work-life balance

To make these goals achievable, select 2–4 that align with your vision for the year ahead. Be specific, measurable, and realistic in your goal-setting.

Creating an Action Plan for 2025

Once you’ve chosen your focus areas for 2025, it’s time to create a concrete action plan. Here are some tips for staying on track:

Be realistic: Choose goals that are both challenging and achievable given your current resources.
Communicate your vision: Share your goals with your employees so they can align with your vision and contribute to your success.
Incentivize your team: Motivate your employees by offering rewards or incentives for helping you meet your business goals.
Invest in technology: Consider using tools like AI to automate routine tasks, freeing up your time and energy for more strategic work.
Track progress regularly: Assess your progress monthly or quarterly to ensure you’re staying on target and adjusting when necessary.

Looking Ahead: A Positive Outlook for 2025

With consumer confidence on the rise and a positive economic outlook, the stage is set for small businesses to thrive. By assessing your current situation, setting clear goals, and making a plan for success, you’ll be well-positioned to achieve your business aspirations in 2025 and beyond.

Here’s to a prosperous and fulfilling year ahead!

Finishing Strong: Essential Tips for Small Business Owners During the Holiday Rush

The holidays can be a stressful time for nearly everyone, but for small business owners—especially those running retail stores—the pressure is even greater. With extended hours, a surge in holiday sales, and a packed schedule, it’s easy to feel overwhelmed. But fear not! There are ways to navigate the season smoothly, reduce holiday stress, and ensure your business finishes the year strong.

In this post, we’ll explore practical tips for small business owners to manage the holiday rush, empower employees, practice self-care, and deliver top-notch customer service.

1. Manage Your Schedule to Avoid Holiday Burnout

During the busy holiday season, long hours and high expectations can quickly lead to burnout. As a small business owner, balancing personal and professional responsibilities is crucial for finishing the year strong.

Set Time Off: Schedule at least one day off each week (or two shifts) to rest, shop, and prepare for your own holiday celebrations. By prioritizing personal time, you’ll avoid burnout and recharge for the busy days ahead.
Set Boundaries: Make it clear to employees what constitutes an emergency that would require their contacting you. Your time off should be uninterrupted unless there’s a major issue affecting the store or customer service.
Prioritize Events: Be intentional about which holiday events you choose to attend. Select the ones that matter most and help you stay balanced during this hectic season.

Tip: Utilize an online calendar or scheduling tool to help manage both your work and personal commitments, ensuring you have time for everything—without sacrificing your well-being.

2. Empower Your Employees for Seamless Operations

One of the best ways to reduce holiday stress as a business owner is to empower your employees. By delegating and training your staff effectively, you’ll ensure that both you and your team can handle the holiday rush efficiently.

Cross-Train Employees: Equip your employees with the skills to handle routine tasks like answering customer inquiries, processing returns, and offering holiday discounts. This will allow you to step back without worrying about day-to-day operations.
Designate a Lead Employee: Appoint a trusted team member to handle non-routine issues. This will give you peace of mind, knowing someone is managing the more complex customer or operational concerns.
Delegate Non-Essential Tasks: Assign experienced staff to handle store decorations, window displays, opening and closing procedures, and making bank deposits. By distributing these responsibilities, you empower your team and reduce your workload.
Hire Holiday Help: Consider hiring extra seasonal workers to support your team during peak shopping hours. Having backup plans in place for sick days or sudden staff shortages ensures you can provide excellent customer service throughout the holiday season.

3. Practice Self-Care to Manage Holiday Stress

As a small business owner, your well-being is paramount. Managing holiday stress starts with taking care of yourself—physically, mentally, and emotionally. When you take care of yourself, you’ll be better able to take care of your business, your team, and your customers.

Take Breaks: Even a short walk or five minutes of deep breathing can help reset your mind and relieve stress. Make it a habit to take breaks throughout the day to maintain focus and avoid burnout.
Eat Nutritious Meals & Stay Hydrated: Proper nutrition and hydration are key to keeping your energy levels up during the busy holiday season. Avoid relying on junk food and ensure you’re fueling your body for peak performance.
Practice Gratitude: Keep a journal to note things you’re thankful for, and remember to express gratitude to your employees for their hard work. Gratitude can improve mental clarity and reduce stress.
Celebrate Small Wins: Acknowledge and celebrate every achievement, no matter how small. Recognizing your successes will help you stay motivated and positive as you navigate the busy holiday season.

4. Care for Your Employees to Foster Team Spirit

Your employees are the backbone of your business. During the holidays, they’re working hard to ensure everything runs smoothly, so it’s essential to show appreciation and support.

Encourage Regular Breaks: Promote employee well-being by requiring regular breaks. A comfortable break area with snacks and beverages can go a long way in helping your team recharge during busy shifts.
Flexible Hours: Honor employees’ time-off requests where possible and offer flexible scheduling. Flexibility helps your employees balance work with their own holiday celebrations, reducing stress and increasing job satisfaction.
Praise and Recognition: Publicly acknowledge hard work and exceptional customer service. Offering small rewards or praise boosts morale and motivates employees to keep performing at their best.
Holiday Celebrations: Organize a festive lunch or party to allow your team to relax and bond. This will help foster a positive, supportive work environment during the hectic holiday season.
Provide Holiday Bonuses: If your budget allows, even a small holiday bonus can go a long way in showing employees how much they’re valued.

5. Take Care of Your Customers for a Stress-Free Shopping Experience

Increased foot traffic and a heightened sense of urgency during the holiday season can make shopping stressful for customers. Ensuring a smooth and pleasant experience for your shoppers is critical for maintaining customer loyalty and driving holiday sales.

Train Your Staff: Equip your team to handle customer inquiries, returns, and exchanges with confidence. Empowering employees to resolve common issues without escalating them to management ensures a smoother experience.
Create Relaxation Zones: If space allows, set up a designated area where customers can take a moment to relax and regroup. This simple gesture can significantly reduce holiday stress for your shoppers.
Share Tips for a Stress-Free Holiday: Use in-store displays, newsletters, or social media to share practical tips for managing holiday stress. Offer advice on organizing gifts, managing holiday finances, or even dealing with holiday shopping crowds.
Complimentary Gift Wrapping: Offering free gift wrapping is a thoughtful service that reduces stress for your customers and keeps them coming back.
Play Soothing Music: Gentle, festive music can set a calming atmosphere and put customers at ease.

6. Finish the Year Strong by Reflecting on the True Meaning of Christmas

While holiday sales are important for a successful year-end, it’s also crucial to reflect on the deeper meaning of Christmas. As a small business owner, taking time to pause and reflect on your blessings will help you maintain perspective during the busy season.

“I bring you good tidings of great joy, which will be to all people. For there is born to you this day in the city of David a Savior, who is Christ the Lord.”
– Luke 2:10-11

By staying grounded and focused on the true reason for the season, you’ll finish the year not only with strong holiday sales but also with a sense of peace and fulfillment.

Attracting Last-Minute Holiday Shoppers: Tips for Boosting Sales Before Christmas

Black Friday, Small Business Saturday, and Cyber Monday are behind us for 2024, and by all accounts, it’s been a banner year for sales. But don’t let the post-Black Friday lull fool you—there’s still plenty of shopping to be done!

In fact, it’s estimated that 79% of Christmas spending happens in the two weeks leading up to the holiday, with as much as 35% of the total spending occurring during the final week before Christmas. So now is the time to make sure you’re doing everything you can to attract those last-minute shoppers to your store or website.

Here are a few ideas to help you drive traffic and boost sales in the final stretch of the holiday season:

1. Create Eye-Catching Displays (Online & In-Store)

A standout window display or striking website image can work wonders in grabbing attention. For example, a local dress store caught a lot of eyes by placing a dress on a skeleton with the humorous sign: “Does this dress make me look fat?” Other businesses get creative with holiday-themed windows or festive website banners. Some of our local stores are even famous for their annual holiday window displays, which customers eagerly anticipate all year long. If you can make people smile or spark their curiosity, you’ve already piqued their interest!

2. Promote Products at a Range of Price Points

Make sure your customers know you have gifts for every budget. Create a “Gift Suggestions” list to display both in-store and online. Start with lower-priced items and work your way up to higher-end options. This shows customers that you cater to a wide range of shoppers—whether they’re looking for an affordable stocking stuffer or a luxurious splurge. A thoughtfully curated gift guide can be a great conversation starter and help you drive more sales across different price ranges.

3. Offer Flash Sales to Drive Urgency

Flash sales are a great way to create a sense of urgency. Consider running short-term sales that are exclusive to a few hours of the day, or one-day promotions that offer deep discounts. These kinds of limited-time deals encourage customers to act fast, fearing they’ll miss out if they wait too long.

4. Make Shopping as Easy as Possible

The holiday season can be hectic for your customers. Help them out by offering flexible shopping options. Local shoppers may appreciate the ability to buy online and pick up in-store. If you’re exclusively online, make sure to highlight fast delivery options that guarantee delivery in time for Christmas. For in-store traffic, ensure you have plenty of sales associates ready to assist, and if you offer online support, make sure your customer service is easily accessible to help with last-minute questions.

5. Instill Urgency with Countdown Timers

There’s nothing like a countdown clock to get shoppers moving. Consider adding a countdown timer to your website or even in your store window to show how many days, hours, or minutes are left until Christmas. The ticking clock will create a sense of urgency and remind customers they need to make their purchases before it’s too late.

6. Leverage Social Media to Promote Deals & Share Holiday Cheer

Social media is an invaluable tool for driving holiday sales. Use it to highlight your best deals, share special promotions, and showcase gift ideas. But don’t forget to mix in posts that spread holiday cheer without any sales pitch. Share heartwarming Christmas moments, winter scenes, or behind-the-scenes glimpses of your holiday preparations. These posts create emotional connections with your audience, making your brand feel more relatable and memorable.

Final Thoughts

The holidays can be a stressful time for shoppers, and the easier you can make their experience, the more likely they are to spend money with you and return to your business in the future. So take a deep breath, get creative, and make sure your business stands out in these final days before Christmas!

Wishing you a successful and joyful holiday season.

“Glory to God in the highest, and on earth peace, goodwill toward men!” — Luke 2:14

Small Business Saturday: How Supporting Local Shops Makes a Big Difference

As we celebrate Thanksgiving, let’s take a moment to appreciate the heart of our communities—small businesses. On Small Business Saturday, and throughout the holiday season, it’s important to recognize the significant role small businesses play in shaping our local economies and supporting community growth.

Small Businesses: The Backbone of the Economy

With over 34.8 million small businesses in the U.S. employing nearly 59 million people, small businesses make up 99.9% of all businesses and account for almost 46% of all jobs. While many small businesses are owned and operated by just one or two people, their economic impact cannot be overstated. Some of today’s small businesses will grow into large employers in the future, further strengthening the economy.

How Small Businesses Strengthen Local Communities

Small businesses are not just job creators; they are vital to the social and economic fabric of their communities. Here’s how:

Money stays in the local economy: When you spend money at a small business, it stays within your community. The business owner and employees spend that money locally, creating a ripple effect of local job creation and economic activity.
Ability to meet the unique needs of their community: Small business owners have the flexibility to pivot quickly and meet the specific needs of their customers. Without the need for top-down approval, they can respond swiftly to new opportunities, ensuring their businesses are relevant and adaptable.
Creates a community identity: Many small businesses have been a cornerstone of their communities for decades. For example, one of the best-known small businesses in our area is about to celebrate its 100th anniversary! These businesses become synonymous with local identity, embodying the history and culture of the area.
Involvement in local civic life: Small business owners often participate in community organizations like the Chamber of Commerce, Rotary clubs, and local initiatives. This active involvement helps address local challenges while creating a sense of shared purpose in the community.
Innovation and supporting other small businesses: A local restaurant might source ingredients from nearby farms, or a boutique could sell locally made products. Small businesses frequently collaborate with each other, creating unique shopping experiences and boosting one another’s success.

Show Your Appreciation on Small Business Saturday

As we reflect on the many blessings we have this Thanksgiving, I encourage you to show your gratitude by supporting small businesses this holiday season, especially on Small Business Saturday. Visit local shops, dine at locally owned restaurants, and think about allocating some of your Christmas shopping budget to support your favorite small businesses. When you shop local, you’re investing directly in the future of your community.

If you’ve heard about any small business owners giving back to the community or supporting charitable causes, take a moment to recognize their contributions. A simple “thank you” can go a long way.

A Special Note to Small Business Owners

If you’re a small business owner, remember to be grateful for your customers—they don’t have to shop with you, they choose to. Showing appreciation can take many forms, from offering special perks like gift wrapping or loyalty programs, to simply offering a friendly smile or a kind word. It’s a great time to strengthen the relationship with your customers and show them you value their support.

The Power of Kind Words

In this busy season, both customers and business owners can benefit from a kind word of thanks. After all, as the old saying goes: “Kind words are like honey—sweet to the soul and healthy for the body.” (Proverbs 16:24)

Happy Thanksgiving and Happy Small Business Saturday!

May you experience joy and blessings this season, and may your small business continue to thrive in the coming year!

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