Sign up for email updates from SBAReceive helpful business tips and upcoming events in your area.


Privacy Policy
Log in to SBA.gov:
Enter your SBA.gov username.
Enter the password that accompanies your username.

Community Header Banner

Running a Seasonal Business; Thriving and Surviving Year-Round
Caron Beesley
Post date: 12/08/2009 - 08:43

In

business, we all struggle with highs and lows, but for seasonal businesses -

those that make the bulk of their profits at certain times of the year -

knowing how to optimize the lows while riding the highs requires a particularly

innovative and diligent entrepreneur at the helm.

Seasonal

businesses are all around - from garden centers and snow removal firms to

summer camps and beach stores. Some will choose to remain open for business

throughout the year, while others will close during the slow months.

If

you operate or are looking to start-up a seasonal business, here are some tips

for minimizing the effect of seasonality and optimizing your business

operations year-round.

Managing Cash Flow through the Peaks

and Troughs

Investing

your income during peak season while managing your costs and maintaining good

credit during the quiet times is a must. Below are some strategies for ensuring

that cash continues to flow even when your doors are closed:

  • Manage your Invoicing - Whatever your business you want to

    make sure you can get a percentage payment upfront from customers as often as

    possible. This will improve cash flow and limit the problem of slow-paying

    customers. Likewise, consider negotiating extended payment terms from your

    suppliers so that you can spread the burden over 6-12 months rather than incur

    hefty pre-season demands for payments on goods you haven't sold yet.

  • Government Backed Loans for Seasonal

    Businesses -

    Government-backed loans are also an option, the Small Business Administration

    (SBA) under its CAPLine Loans umbrella

    program helps small businesses meet their

    short-term and cyclical working-capital needs. Part of the CAPLine Program is the Seasonal

    Line short-term working capital loan program which provides advances

    against anticipated inventory and accounts receivable to help businesses with

    seasonal sales fluctuations. Read more here.

  • Alternative Income Sources -

    If you are able to diversify your business

    offering and you need to accrue additional cash flow during the quiet season,

    you might want to consider earning income from alternative sources. For

    example, landscaping service companies often shift gear in the winter by

    marketing their snow clearing services. Be sure to check whether you need to get

    an additional business license or permit to do this, Business.gov's 'Permit Me' tool can help

    you identify what licensing you may need.

The Seasonal Labor Market

Managing

labor is also a big challenge for seasonal business owners. By hiring temporary

employees you can significantly reduce your cash outflow during the off-peak

season.

But

on the flip side, recruiting, hiring and training temporary workers can be resource

intensive on a small business, so you want to do all you can to mitigate your expenses

by encouraging your employees to return next season.

Much

of this comes down to quality of work life as well as incentives and soft

benefits that make your business a desirable prospect for cyclical workers.

Continued outreach to those employees during the off-season can also help keep

your business top of mind - the occasional event or dinner will surely be

appreciated.

Making the Quiet Season Work for You

The

quiet off season months are a great time to regroup, review and plan ahead. You

want to do everything you can during this time to maximize your time so that

when you re-open your business once more your customers are there with you.

In

addition to budgeting for the year ahead and taking care of tasks such as

renovation, maintenance, etc., now is the time to take stock, review the

competitive landscape, visit trade shows, and consider introducing new product

or service lines.

This

should also be your busiest time for marketing activity. Seasonal businesses

only have a small window to capitalize on marketing, and this means getting

ahead of the game and making your quiet season work for your future business

now.

Additional Resources

Whether

you apply for a bank loan or government-backed loan, these resources

from Business.gov can help guide you through the

application process.

In

addition, Business.gov also provides an online Managing Business Finance Guide that provides tips on getting business

credit, accepting payments from customers, and more.

Opening a Fitness Center; 7 Steps to Making Your Passion for Fitness an Entrepreneurial Reality
Caron Beesley
Post date: 12/03/2009 - 08:58

The fitness industry

continues to be a lucrative market opportunity for small businesses and

entrepreneurs. Despite a crippling recession, the *IHRSA

(the fitness industry's global association) forecasts that U.S. health club

memberships will reach 50 million by 2010 - a staggering 25% growth rate

over today's numbers.

Many factors play a part

in fueling the success of this largely recession-proof industry - not the least

of which is the growing trend among the 80 million plus baby boomers who are

willing to part with their money to stay fit and healthy. In addition, existing gym members remain

reluctant to give up their health club memberships choosing to save money

instead on big ticket items such as vacations - reaffirming the fact that

'buying' fitness is no longer perceived as a luxury item but a fundamental part

of our everyday lives.

If you are interested in

starting a fitness business and serving this growing market - Here are some

pointers that can help you take the first steps towards owning your own fitness

center.

1. Do

your Market Research

Before you talk to your

bank manager you will need the foundations of a business plan, and much of this

will come from the information you derive and conclude from your market

research. Factors to consider include:

  • Deciding on a Target Market -

    There are many options to consider when determining your target market. For

    example, you may decide to target a broad audience by offering a variety of

    disciplines from weight training, to cardiac work-outs and group classes. Or

    you may want to focus on a particular niche such as women-only gyms or

    discipline-specific fitness centers such as a pilates or yoga-based facility. To

    help you determine how you can capitalize on an underserved or potential

    market, step back and look at what the competition is doing and take the time

    to analyze local demographics. The

    government offers free access to a variety of consumer demographic data through

    the Business.gov Business

    Data and Statistics portal.

  • Location, Location, Location -

    Finding the right facility at the right price is critical to your success. If

    your customers can't find you, park easily, or assemble en masse at your chosen

    facility, then you simply will not be able to cater to your chosen market. Given

    that rent is likely to be your biggest business expense plan on spending most

    of your planning hours getting it right - first time.

Read

'Tips

for Choosing a Business Location' and make sure you are

aware of the ins

and outs of commercial leases, including how to

negotiate the best deal for your business.

2. Staffing

your Fitness Center

After rent, staff costs

are the second largest expense involved in operating a fitness center. Many

larger established fitness center chains hire their own fitness instructors and

trainers, but for a start-up you can achieve greater flexibility and lower

costs if you hire instructors on an independent contractor basis. This can

reduce the regulatory and financial burdens that come with having employees on

the books - including payroll taxes, employee benefits and insurance

costs.

Do note that there are very

specific taxation and regulatory requirements involved with hiring independent

contractors. Read more about these in this Hiring

independent Contactors Guide from Business.gov.

Also read - '*Working

with Independent Contractors: Understanding Tax Requirements'.

3. To

Hire or Buy Fitness Equipment?

Fitness equipment is not

only expensive it is a continually evolving technology. So how do you balance

expenses while offering the latest and greatest equipment to your clients? Much

of it will depend on your current and future budget. To understand more about

the lease versus buy debate for commercial fitness equipment read '*Fitness

Equipment Leasing: Sorting out the Details'.

4. Write

a Business Plan

Once you have a picture of

how you intend to formulate your start-up business strategy - write it down.

Writing a business plan

will not only keep your business on the right path it will stand you in good

stead should you need start-up financing. *Bplans.com

offers some useful industry-specific business plan templates for starting a

fitness center - you can view and download these *here.

5. Understand

your Financing Options

If you don't qualify for

traditional bank loans, you might want to look to a government-backed loan. The

Small Business Administration

(SBA) provides a guaranty to banks and lenders for money lent to small

businesses, rather than lending the businesses money directly.

There are many different

types of loans, including the SBA

Express Loan that offers small businesses the chance to

get an SBA-backed loan of up to $350,000 to start-up or expand. The 'express'

piece refers to the fact that your loan can be turned around in 36 hours.

Read more about SBA loans here

and even search for a business loan that fits your need using this Small Business Loans and

Grants Tool.

6. Take

Care of the Critical Start-Up Steps

Don't forget the legal and

regulatory side of starting a business.

Read '10

Steps to Starting a Business' to ensure you have

checked off everything from business incorporation to registering your business

name.

7. Business

Insurance

Before you open your doors

for business, look into purchasing some form of business insurance to protect

yourself against workplace injuries and accidents. Read 'Small Business Insurance - Part 1: What Type of Insurance Do I Need?'

and 'Part 2: Finding and Buying the Right Policy' for

tips on making the right decision.

Additional Resources

The International Health,

Racquet & Sportsclub Association (IHRSA) offers a wealth of information for

fitness center owners including resources on *Health

and Fitness Management, *Sales

and Marketing, *Human

Resources, and more.

*Note: Hyperlink directs reader to non-government site.

Message Edited by CaronBeesley on 12-03-2009 07:59 AM
When Something's Got to Give; Outsourcing Options for Your Growing Freelance Business
Caron Beesley
Post date: 12/01/2009 - 08:59

Being your own boss and earning a living as a freelancer has an appealing ring to it - so much so that approximately 25 million people in the U.S. are doing it!

 

But freelancers are also business owners who must self-motivate, self-manage and self-promote. They must also take care of business administration, business operations, business development and business risk.

 

Quite a lot for one person to manage!

 

And while the savvy freelancer will be wise to factor in the cost of doing business as part of their hourly or project rate - what happens when you simply don't have enough hours in the day or night to manage both your client work and operate the business at the same time ?

 

This is a predicament many freelancers find themselves in - and too much work means something's got to give. Unfortunately this can result in freelancers having to turn away business; neglecting their administrative obligations; and losing opportunities for future work.

 

When your freelance business has become so successful that you cannot grow and sustain it on your own - it's time to look outside for help.

 

Here are two options for using outsourced services to help your freelance business attain new heights!

 

1. Consider Sub-Contracting to another Freelancer or Independent Contractor

 

Hiring an independent contractor or freelancer to help you out on an hourly or project basis, without the burden of actually employing them in an official capacity, can substantially free up your time, here are a few considerations to bear in mind when hiring a non-employee to help your business:

 

  • Finding Trusted Freelancers and Independent Contractors - Your best bet for finding freelancers (is word of mouth and referrals. Ask around. Use your LinkedIn or Facebook page to solicit recommendations from friends and acquaintances. Another alternative is to use Internet freelance 'marketplaces' or 'bidding' sites built solely for freelancers and the people who want to hire them. Read more about how these can work for you in this article '*5 Sites for Freelancer's to Find Work'.

 

  • Ask for Examples of Work and References - Just as you would expect your clients to request from you, turn the tables and be sure any prospective sub-contractor can provide a cross-section of work examples and a few references.

 

  • The Agreement - Be sure to protect your interests with a written contract. Your best bet is to talk to a lawyer, but you can also save money by customizing some of the freely available sample freelance agreements found on the Internet. Here is an *example of such an agreement from *www.writecontent.com.

 

 

  • Be Clear on Roles - Whether you are hiring someone to help design a brochure or research and write a press release for a client, be clear about their role and responsibilities. If this is the first time working with this sub-contractor, try to be the main point of contact for your client, while the sub-contractor only interacts only with you and not with the client. Once you have established trust or if you are working with a sub-contractor whom you know and can trust with your 'brand', then you may feel more confident letting them take on the role of project lead and directly interfacing with the client on your behalf - thereby freeing up your time.

 

2. Outsource your Administrative Function

 

Occasional help, in the form of 'virtual assistants' (VAs), accountants, tax advisors and even lawyers, can help reduce the burden of business administration and management.

 

Tax specialists and accountants can help reduce many of the headaches associated with small business ownership - particularly at tax time (think about all those weekend hours you consume as a freelancer just managing your tax obligations). While virtual assistants can be hired for as little as $20-50 an hour to help with all facets of your business - from managing your business expenses and maintaining inventory, to proofing and formatting your sales pitch in PowerPoint.

 

Read 'Need Help Starting a Business? Tips for Getting the Right Kind of Advice and Taking Control of Your Start-Up!' for some pointers to help you identify the right kind of help.

 

 

*Note: Hyperlink directs reader to non-government Web site.

Message Edited by CaronBeesley on 12-01-2009 08:04 AM
Life is Sweet For Entrepreneurs as Cupcakeries Boom (+ Tips for Starting a Food Service Business)
Caron Beesley
Post date: 11/25/2009 - 09:14

During one of the worst recessions in U.S.

history, a little sugary confection - the great American cupcake - is proving

to be an unexpected fast food market opportunity for many entrepreneurs.

One city where the cupcake sector is

booming at a rate faster than your average coffee shop is Washington, D.C.,

where an investigatory article by The

Washington Post found that at least half a dozen cup cake eateries - or

'cupcakeries' - have opened in the past 20 months, with more on the way. ('Cupcakeries Emerge as Washington's Sweet Spot in a Downturn*').

The

Secret of 'Cupcakery' Success?

Everyone can understand the appeal of

the cupcake, but why the sudden spurt in 'cupcakeries'?

Some see correlation in the popularity

of the little confection with the current recession. Interviewed by The Post, Paul Sapienza, vice president

for the Retail Bakers of America, offers his own assessment of the confection's

popularity: 'They are cute. They are

an economic treat, which helps out in the recession. They are a little

decadent, so you get cake, frosting and sometimes filling all at the same time.'

While others doubt the trend will last.

One fan of the Washington,

D.C. cupcake group on Facebook

told The Post: 'For me, it's a

personal-size treat. You don't have to share it with anybody. It's a

guilt-free, happy treat that takes you back to your childhood,' Jones

said. 'Do I think it's a stable

business? No. I wouldn't invest in a cupcake store.'

The

'Cupcakery' Opportunity

But regardless of opinion-based

forecasts, 'cupcakeries' are certainly a sweet option for entrepreneurs. Not

only can you benefit from walk-in sales, but

adding a pre-ordered catering option to the business mix can also be lucrative.

For example, Georgetown Cupcake - cited in The

Post's article - sells between 3,000 and 5,000 cupcakes a day - of which 30

percent are walk-ins and 70 percent pre-ordered.

Servicing anything from kids parties to

workplace soirees and even weddings, cupcakes are a perennial treat and a

potential goldmine given the proper planning, marketing and location.

Starting

your Own 'Cupcakery' or Food Service Business

If you are interested in starting a

'cupcakery' or other food service business, you will still need to observe the

basic strategies of starting and operating a business - while observing food

service business laws!

Here are some useful tips and resources

that can help entrepreneurs start, operate and grow their food service

businesses:

1. Getting Started

If you are a first-time business owner

or entrepreneur, or even if you have some experience under your belt, these 10 Steps to

Starting a Business from Business.gov will guide you

through the process involved in making key business planning and financial

decisions about starting a business.

2.

Finding the

Right Location

Whether you are in downtown Washington, D.C. or in America's

heartlands, researching and planning your potential location and market base is

critical. And while city locations may attract walk-in traffic for your food

service business, many suburban locations offer a higher concentration of lucrative

'family-oriented' catering business opportunities.

Use freely available market research

tools to your benefit. You can check local demographics including employment

statistics, consumer statistics, and more using these guides from the

government.

You'll also need to check local zoning laws, even if you

want to operate a home-based food production business - many local governments

restrict what business can be done from home.

Get more advice and tips from

Business.gov on choosing a

business location.

Alternatively you may wish to start

your business online - read 'Starting and Growing an Online Business: An Entrepreneur's Checklist'.

3. Understand the

Regulations That Govern Food Production Businesses

There

are a variety of laws and regulations that govern the food production and

catering business, here are some resources that can help:

  • Start Local - Most laws that govern this sector are

    enforced at the local level. Check your county's Public Health Department for more information.

  • Shipping Food Products Across State

    Boundaries -If you

    produce a food product that is shipped across state boundaries then the FDA and Department of

    Agriculture

    both provide compliance guidelines.

For

a more general overview of federal regulations that affect this industry, check

out the resources on Business.gov's Restaurant and Food Service Business

Guide or visit www.foodsafety.gov.

4. Hiring Employees

in the Food Service or Production Business

Catering

or food service businesses are almost impossible to operate as a one-man-band,

so you are going to need to hire employees. Read Ten Steps to Hiring Your First Employee to understand the legal and regulatory

side of hiring employees.

If

you choose to operate a food service business or restaurant you will need to be

aware of the laws that govern the hiring and management of employees in the food service business - Operating a Restaurant within the Law: A 101 in Compliance Part 1 and Part 2.

5. Marketing

Marketing your cupcake or other food

service business is going to come down to identifying your target market and

using the appropriate tools and tactics to reach them. Here are some tips and resources to help

small business owners develop a marketing plan to support their goals,

including sample marketing plans and online tutorials.

Remember to include community and

online marketing channels in your marketing mix - from your company Web site to

Facebook and Twitter; local newspaper ads to stories written by local

reporters. Use integrated methods to reach your audience wherever they are.

Good luck!

*Note: Hyperlink directs reader to non-government Web site.

From W-2 to Schedule 1040 C: Uncle Sam Has a One-Stop Shop for All Your Business Forms
Caron Beesley
Post date: 11/23/2009 - 07:40

Whatever stage your business is at - from hiring your first employee, filing your first W-2, or applying for a loan - a barrage of forms will require your attention. And as a small business owner, it's more than likely your responsibility to take care of this particularly time consuming area of business management.

However, in many instances, small business owners either aren't aware of their regulatory obligations or simply don't know where to find the multitude of government-wide forms they need to ensure they are operating their business within the law.

For example, when it comes to hiring your first employee, did you know that your form checklist should include - an EIN application form; federal tax withholding (Form W-4): federal wage and tax statement (Form W-2); employment verification (Form I-9), and more? (For more information read Ten Steps to hiring your First Employee).

And that's just one facet of business operation!

Business.gov and Forms.gov: All the Government Forms Your Business Needs

The good news is that the government has leveraged its growing Web-based citizen services to connect small business owners to essential regulatory and other government forms needed to help them start, grow and operate their small business.

Yes, agencies such as the IRS and SBA have housed agency-specific forms on their Web site for many years. But only relatively recently has relief come to small business owners in the form of two government-run Web sites - the Business.gov and Forms.gov - that combine government forms and resources from multiple agencies in one place.

  • Business.gov is the U.S. government's official Web site for small businesses and was originally meant to be a portal for federal forms. Even though the site has grown to offer a rich array of tools and information for small businesses, it's still a great resource for forms. Check out the Essential Government Forms page on the site for links to the most frequently requested forms (for example: W-2, W-4, SS-4, 1040 Schedule C, and so on) to forms categorized by business need - starting a business, financing a business, operating a business, and even closing a business.

It also includes links to state government forms as well as forms that support business incorporation, the protection of intellectual property, business licenses and permits, and more.

  • Forms.gov, on the other hand, is a useful searchable online catalog of more than 5,000 federal forms managed by the General Services Administration (GSA). However, it's best to use this site when you know the precise name and number of the form you need access to - for example, if you just type 'tax' you'll get a listing of hundreds of tax forms.

Additional Resources

Follow Business.gov on Twitter and Facebook for up up-to-the minute information and resources for small businesses. You can also discuss, share and get insights from fellow business owners as well as industry and government experts at the Business.gov Community.

Message Edited by CaronBeesley on 11-23-2009 06:44 AM