Most people would assume that running a business at the start is one of the largest hurdles for a business owner. But, just like losing weight, the hardest part of it all is maintaining your ideal figure. In the business industry, what separates the cream from the crop from the scraps are the ones who manage to keep their company alive in the long run.
Based on research conducted by the U.S. Bureau of Labor Statistics, roughly half of small businesses fail within five years of launching.
And for those small businesses whose sales and profits are plummeting, the future might be unstable and unsure. Sadly, there is no instruction manual on how to save a sinking ship. Every small business is unique, and each one carries its own specific risks and rewards. Still, there are some strategies business owners do to stop taking water in and start sailing once more.
GoFundMe, along with other websites like Kickstarter and Indiegogo, is a tool that business owners have been using since to keep them afloat. These platforms are most notable in assisting/ funding medical, debt, funeral costs, or natural disaster relief.
Today, crowdfunding is increasingly rampant and used by struggling small businesses, especially when banks and other lenders turn them down. Most establishments tend to ask for support from their loyal customers.
According to Chief Executive Rob Solomon; Thousands of small businesses, ranging from comic-book shops to drive-inn movie theaters across 19 countries, have now petitioned campaigns for assistance.
“These independent businesses become pillars in a community, and when they can’t stay open, the communities rally,” Mr. Solomon added.
An Owner’s Perspective
Nick Perry, an owner of a British grocery, a restaurant called Tea & Sympathy, and the fish-and-chip shop A Salt & Battery located in Greenwich Village, out of desperation, started her GoFundMe page just last year when she was not able to pay rent. Her campaign reached $52,000 nearly towards its $100,000 goal.
“We just couldn’t pay the rent,” Ms. Perry said. “The rent is so astronomical.”
While having positive results on her fundraiser, with loyal customers stopping by more often and neighbors offering free labor, she says she would still consider turning to GoFundMe in the future.
On the latter, Ms. Perry made changes
Making Ends Meet
Another business owner- Peter Glassman of Books of Wonders in Manhattan, launched a GoFundMe campaign, which started on October 22 and has raised more than $23,000 towards its $250,000 goal. The company has 30 employees between its two stores and annual sales, just over $2 million.
Mr. Glassman said he can pay his current bills but needs money to move the bookstore’s flagship from 18th Street to a more affordable and high-trafficked space in the Flatiron District. He added that he struggled to pay the annual $600,000 lease at his current location, particularly after his most recent subtenant, City Bakery, entered financial problems and withdrew.
The bookstore’s uptown store will remain in its current location.
A professor, Bruce Bachenheimer at the Lubin School of Business at Pace University, said that the validation business owners get from their campaigns might not be enough to keep a business open but reassure them.
After a successful GoFundMe campaign, owners might say to themselves, “‘I should hang on, I should keep going,'” Mr. Bachenheimer said.
The Real Struggle
On the other side of the coin, Chris Doeblin, owner of the Book Culture shops in Manhattan, says not every struggling business wants to ask their customers for donations. That is why he started a community lending program just this summer after he encountered existential challenges like rising rents, online shopping (Amazon), the increase of minimum wage, and the inability to borrow money forced him to the brink of closing.
Mr. Doeblin has raised $600,000, which he plans to repay within five years at 4% interest, a far lower rate than he could get elsewhere.
“People are recognizing that there’s a big downside to Amazon and buying things online,” he said. “I hope it’s not too late,” he added.
Small businesses like retail shops, in particular, are facing a phase-out due to the increasing popularity and demand of online shopping on e-commerce websites.
According to the UBS analysts, roughly around 75,000 retailers will have to shut down their business in 2026.
Tone Balzano Johansen, the owner of Sunny’s Bar in Brooklyn, NY, shares the same difficulty and aspirations but has overcome trials and still going.
To business owners in her predicament, she offers this advice: Don’t give up easily.
“If this means something to you, fight. Fight tooth and nail,” Johansen said.
Blind Spots to Avoid for Better Money Management
People generally have varying opinions on handling finances and assets, but one thing is for sure: there are blind spots we need to avoid to prevent future regrets.
Almost every person has doubts when it comes to money management. At the end of the day, we’d all just like to know if we’re doing the right thing. There are people who are quite frugal in pursuit of saving every penny, while there are the happy-spenders who rack up on purchases.
According to Morgan Housel, author of “The Psychology of Money,” people tend to do crazy things with their money. However, opinions on the best practices in financial and asset management will always vary. There may be some things we do with our money that other people think is crazy and vice-versa.
The differences in judgments lie in our personal backgrounds: the economic environment we grew up in, the habits we learned from our families, and the lessons we learned along the way. All these factors shape how we view and handle money. However, regardless of our backgrounds, we all have our blind spots.
Keeping Up with Social Media Trends
Around the 1980s, wealth inequality was becoming more evident in society. Unfortunately, what did not change is people’s expectations that everyone should have the same lifestyle. This resulted in more people taking loans to fund the things that they must have, such as bigger estates, nicer cars, and private schooling for their kids.
This phenomenon of unrealistic lifestyle expectations was further fueled by social media in today’s world. While the pressure to take on more debt to afford things has been around for over six decades, social media has just made it even greater, touching across all demographics. Seeing other people flaunt their expensive lifestyles may encourage you to spend more in order to keep up, but in the end, you miss out on accumulating true wealth.
As you grow older, your goals and personal preferences will change. This makes it even more difficult to make long-term financial plans. Life milestones such as starting your own family and having children can ultimately change how you view your money.
How exactly can you future-proof your savings and spending habits? The first step is to reevaluate your current financial standing and expenditure. This will allow you to cut down on unnecessary expenses and, instead, funnel the money towards savings. It is always best to avoid extremes such as under-saving, which could lead you to struggle financially in the future.
Savings Can Give You Freedom
Having extra savings can provide you and your family flexibility and comfort through unexpected situations. This means that you could still be able to cover your necessities when you find yourself unemployed and waiting for a new opportunity or when your business is affected by a global pandemic. According to Housel, the independence that you will gain from having sufficient savings is the biggest benefit that you and your family will enjoy.
How Climate Action Can Be Forced by 137 Million Americans That Own Stocks
Climate change is coming sooner than later, which is why climate action is necessary to avoid problems to rise after. Here’s how owning stocks help us.
The US presidential elections are a few days away, and there is a possibility of a political solution that will resolve the climate crisis. Should the Biden administration get elected, they may provide us with climate legislation. However, no one has any guarantee of when that will happen and what the outcome will turn out to be.
While we are under the current administration, the Department of Energy has settled with referring to natural gas as US freedom molecules. This not the introduction to carbon tax the Republicans are hoping for.
So who can we turn to when it comes to immediate climate action? The corporations need to step up. We can see that some companies are jumping into action, like Beyond Petroleum, who is working on implementing their slogan. The company announced that they plan on cutting oil production to 40% in the following decade and expect to reach zero emissions by the year 2050.
It has joined hundreds of companies that are looking at science-based processes when it comes to cutting emissions. Nearly 300 companies that range from apparel to automotive to cutting their emissions to 35%, which is a great objective considering that these companies are responsible for having more emissions than Spain and France combined.
For tech companies, they seem to be in an arms race for sustainability. In 2019, Amazon promised to purchase 100,000 electric delivery vans to go carbon neutral by the year 2040 and to reduce enough carbon to offset all its past emissions.
Meanwhile, Microsoft is participating in Transform to Net Zero, which is a group of private companies that aim to achieve net-zero global emissions by no later than 2050.
The latest update for climate action has received both hopeful and cynical reactions—hope that the changes made by corporations can make a significant difference, but cynical about whether or not these commitments will be achieved.
However, Americans who own stock have the capacity to force corporations to take their own step towards climate action. If the 137 million Americans that own stock can convince the corporations they own stock from to take these steps, you can ensure that the climate will improve overtime.
It’s normal to feel some skepticism towards the actions of the corporations as some companies share the lack of concern towards the climate, but with the help of shareholders and voters, they can force these corporations to provide tangible proof of their climate action.
Their reward for this is that they can keep their shareholders because, at the end of the day, you can’t have shareholders if the world isn’t sustainable for living and that companies need shareholders to support their companies and products.
1 in 4 Women Are Considering Downgrading their Careers Due to Coronavirus
The COVID-19 pandemic has hit the economy hard in more ways than one. Most people have lost their jobs, and more are thinking of downgrading as well.
The coronavirus epidemic continues to affect everyone’s life in more ways than one, especially when it comes to livelihood. According to data from Lean In and McKinsey & Company, women are affected in a disproportionate matter.
Based on a statement from the Women in the Workplace, one in four women are thinking about leaving the workforce or downgrading their careers because of the damage brought about by COVID-19.
Sheryl Sandberg, the founder of Lean In, says that this is the most alarming report they’ve seen. She believes that the coronavirus has a highly adverse effect on women and poses the risk of undoing all the progress that has been made for working women.
From the start of 2015 up to the start of 2020, the population of women who occupied senior vice president positions rose from 23% to 28%, with the total amount of women in the C-suite going from 17% to 21% during that time frame. While this growth shows great promise, Sandberg is emphasizing that the impact brought about by the pandemic poses a threat to this progress.
For the first time in the years that this report has been released, Lean In and McKinsey and Company research staff are seeing proof that women are leaving their careers at higher rates than men.
In the previous six years of this report, data showed that women and men leaving the workforce were at similar rates.
The ongoing increase in the number of women leaving or considering leaving their jobs is due to the caregiving crisis that women are faced with, and this has only worsened because of the pandemic with most daycare centers and schools staying closed.
According to a study from Lean In and Mckinsey & Company, mothers are three times more responsible for most of the childcare and housework than fathers during COVID-19.
Aside from that, mothers are said to be more worried about their performance in work being judged negatively because of their responsibilities when it comes to caregiving during the coronavirus pandemic.
For Sandberg, a lot of women are still held back by the broken rung on the corporate ladder, which is the first step to getting promoted to managerial positions. For every 100 men getting promoted to manager, only 85 women are able to reach this position.
The only way women can reach positions that are male-dominated is by understanding the unique problems that women face. The goal of the Lean In founder is to make work work for both women and men, and she notes that you can make work work for parents by being flexible and giving people the support they need, so they progress forward.
Keeping End-of-Year Finances in Check
Airbnb Bounces Back amidst Covid-19 Pandemic
World’s Most Underrated Food You Should Try Out in the Future
Featured2 years ago
Getting Big: For Small Businesses
Featured2 years ago
11 Entrepreneurial Skills Small Business Owners Need To Master
Featured2 years ago
What Would A Biden Presidency Look Like For Small Businesses?
Business2 years ago
Five Best-Kept Secrets of Industry Influencers
Featured2 years ago
Amish Lessons: What Small Businesses Can Learn About Success
Business2 years ago
Taco Bell Is Revolutionizing How We Order
BigBusiness3 years ago
San Francisco’s OpenWorld by Oracle Relocates to Las Vegas
Business2 years ago
3 Entrepreneurs Share How They Turned Their Hobbies Into Successful Careers