Small Business Startup: Island Bay Pier House

HOLLY BONAME/NNY BUSINESS
Island Bay Pier House co-owners Brandi Wanecski and Adam Beaman stand behind the restaurant’s illuminated bar.

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Capitalizing On Recreational Fun

CHRISTOPHER LENNEY/NNY MAGAZINES
The St. Lawrence Centre’s new Sports Complex is seamlessly attached to the mall, and provides a year-round safe and fun environment for a wide array of activities.

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20 Questions: On The Trail To Successful Sales

SYDNEY SCHAEFER/NNY BUSINESS
Matt Waite of Waite Motorsports speaks during an interview inside the store located in Adams Center.

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‘Side-by-Side’ in Business

SYDNEY SCHAEFER/NNY BUSINESS
Tyler Spry, left, and his parents Amy, center, and Jack, right, pose for a portrait inside Watertown Power Sports located along Route 11 in Watertown.

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Small Business Startup: Seabound Yachts

Jeremy Cohen, owner of Seabound Yachts

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Adjusting Business Plan for Seasonal Changes

Jennifer McCluskey

Many businesses, especially here in Canton and Potsdam which have large college student populations, struggle with slower summer months.  Others in more touristy areas, such as near Higley or out in Clayton or Alex Bay, have the opposite seasonal changes.  A survey from Wells Fargo reported that 45 percent of business owners say they reliably have several times of the year that are faster and slower than others.  But no matter when your business’s slow season is there are many strategies for dealing with slower seasonal sales. 

    One strategy is to close up shop during the slow months. You’ll keep having to pay rent, but utilities, employees, and other costs will be gone or minimal.  This is the strategy that is often employed in some predominantly tourist areas.  However, if your product can serve locals as well, possibly staying open when everyone else is closed might lead to some small profits, or possibly large ones if there is an ice fishing derby or some other event. The Wells Fargo survey mentioned previously also reported that 62 percent of small business owners said they reduce their capital expenditures during slow seasons, and 43 percent said they reduce hours for their employees.

    Another strategy is to set money aside during the high sales months.  This is hard for many business owners.  Forty-one percent of business owners surveyed said seasonal differences make it more difficult to manage cash flow.  Planning can be difficult when you don’t know what’s right around the bend, or if you’re just barely making it during the better parts of the year.  If this is the case for your business, you may want to use your slow season to take a hard look at your financials and see if there are ways you can trim costs during the rest of the year so that you can be better prepared for next year’s downturns, or create a financial budget if you’re just winging it.  Make sure you are realistic with your cash flow projections for the future by having a good idea of past trends and sales in both slow and peak times. Update your forecasts regularly to make sure you are on top of any changes in trends.  Your SBDC advisor can help create and analyze projected budgets. 

    You may be able to delay some expenses until different times of year.  Talk to some of your vendors, for example your insurance company, to see if you could pay at a different time of year.  Even if they say no, I’m sure they won’t mind if you pay your bill ahead of time in the spring so that you’re all set when it’s due in the summer.  Another idea to improve cash flow during slow months is to collect a deposit from customers, for example half down and half on delivery.  This works especially well when there is a substantial gap between booking your service and service delivery. 

    Also, develop a positive relationship with your bank.  There are possibilities of obtaining a seasonal line of credit to get equipment and other items you need to get ready for your high season and then pay it off when the sales start coming in.  This could work well for something like a lawn care business which will need new equipment in the spring but won’t have money to pay for it until the summer. During slower times of the year, one in five business owners (21 percent) reported increasing their use of business lines of credit or business credit cards to bridge cash flow gaps. During busier times, two-thirds (64 percent) said they pay down debt or reduce their use of credit.   

    If you would like assistance planning for seasonal changes in your business cash flow, you can get in touch with your local Small Business Development Center office.  You can contact the SUNY Canton SBDC at (315) 386-7312, SUNY Canton SBDC at Clinton Community College at (518) 324-7232, or the Watertown SBDC at JCC (315) 782-9262 for free business counseling.  The Wells Fargo survey referenced can be viewed at https://wellsfargoworks.com/small-business-optimism-reaches-highest-point-in-a-decade.

               

How Will Mandatory Overtime Pay Impact Agriculture?

Jay Matteson

Agriculture tends to be a labor-intensive industry. Dairy farms depend upon labor for everything from milking cows to planting and harvesting crops.  Apple Orchards have only a few weeks to harvest apples in the fall.  Vegetable farms need help all season long planting, weeding, harvesting and processing their produce. New York agriculture is second only to California in the cost of farm labor as a percentage of the value of receipts for products sold.   Farm labor is 13.2 percent of the value of farm receipts in New York state. The national average is 9.5 percent

    High risk is part of farming especially when you consider the dependency on natural cycles and Mother Nature.  A cold wet summer or hot dry growing season can equally spell disaster. Diseases and illness can severely impact crops and livestock.  A disease or crop pest can sweep in on the wind unexpectedly and wipe out crops. Livestock herds may be impacted by illness, requiring money and labor to help nurse a herd back to health.

    Most important, when thinking about the impact of labor on agriculture, is the seasonal vulnerability of the farm.  Short windows exist to plant and harvest crops. These periods are intense and workers hired to perform planting and harvest know coming in to the position, they’ll work many hours to get the job done.  This is part of farming and is expected.

    Mix all of this, with slim margins and, for dairy farms, no control on the price they are paid for their product, and you have an industry that is very susceptible to negative impacts from government imposed arbitrary mandates. In New York state minimum wage increases and now a proposed mandate for overtime pay for farm workers could place many farms, or their workers, in jeopardy.

    The New York State Senate and Assembly have introduced legislation to mandate farms pay their employees overtime if they work more than eight hours a day or 40 hours a week. According to a report from Farm Credit East, “The Economic Impact of Mandatory Overtime Pay for New York State Agriculture” (February 2019), estimated farm labor costs would increase 17.2 percent. This is in addition to the impacts of increasing minimum wage.

    Combined together, mandatory overtime pay and scheduled minimum wage increases will cost our farms in New York state $299 million, the Farm Credit East report indicates, as well as driving down net farm income by 23.4 percent.   That is hard to fathom.  New York state is imposing mandates that will drive down net farm income by almost 25 percent, according to Farm Credit East, a respected and well-established financial institution. It is also notable that payroll taxes and workers compensation costs, paid to New York state, will increase.

                It is not hard to anticipate how farms will adjust to these government mandated expenses. In talking with farm owners, there are three common replies. One common response is that they will reduce full time employees to part time workers. Part-time workers do not receive all the benefits paid to full-time employees and the farm will have several part-time workers coming in shifts to do the work of a full-time worker. This allows the farm the ability to avoid mandatory overtime pay.  Another response is to cut benefits paid to workers to make up the difference in overtime pay. A third common response is to shift to less labor-intensive crops and reduce the farm workforce.  In any of these scenarios, it is a lose-lose-lose situation.  The farmworkers will lose, the farm will lose, and New York State will lose. It is that simple. A question for you, how much more are you willing to pay for your food?

Is Your Business Planning (ahead) For A Successful Transition?

Michael Besaw

Across the north country region, family business owners are debating their future, and determining how the business they’ve worked diligently to create, will transition after they retire – is it letting a younger family member take the reins, or having a business valuation to prepare for an open market sell, or maybe moving to an employee-owned model; these are the complicated decisions that business owners in the north country are trying to navigate.

The ‘Need for a Transition Strategy’ estimates that more than 10,000 businesses in the Adirondack north country are owned and operated by Baby Boomers, who are planning to retire in the next few years in what has been referred to as the “silver tsunami”. Closure of these businesses means loss of services and tremendous loss of employment. Unfortunately, only 15 percent of businesses nationally have an exit strategy planned. This is where the inspiration came from for the Adirondack North Country Association’s “Center For Businesses In Transition” (CBIT) — a collection of public, private and nonprofit partners working together to provide the training, resources, and connection to existing services to support a business in creating their transition strategy, as well as matchmaking services, in an effort to match the newer generation of aspiring entrepreneurs with a business already established in the north country.

How Community Liaisons for the CBIT are helping
Transition planning isn’t often mentioned when passing a business down to the next generation, whether it’s family members or exploring less traditional transition options such as employee ownership models. In the north country region, there are community liaisons in Ticonderoga County, Franklin County, Hamilton County, Lewis County, and St. Lawrence County who are making the effort to connect with transitioning businesses to help them understand the process and how to plan for it. These individuals have been chosen for their understanding of area business and involvement in their communities are part of their county Chamber of Commerce, Economic Development Agency, or the Small Business Development Center (SBDC); ensuring the sharing of resources, information and objectives.

Workshops Planned for Transitioning Businesses and Entrepreneurs
A top priority of the CBIT is helping businesses connect the dots to the resources available for transitioning. To accomplish this goal, the CBIT is holding monthly workshops across the north country from April to August. Each workshop covers an element of transitioning planning or the process of purchasing a business, including “Business Transitions Overview: Where do you start?”, “Preparing to Sell Your Business”, “Transitioning to Worker Ownership”, “Intergenerational Family Transitions, Creative Solutions & Alternative Structures”, and “Entrepreneurs: Taking over an existing business”. Registration and the date/time for the workshops are available online at www.adirondack.org/CBITWorkshop Series, or on the St. Lawrence County Chamber’s website www.SLCchamber.org.

Using the latest technology, the workshops will also be live streamed at “Viewing Parties” to offer a level of convenience to both businesses and entrepreneurs who are unable to travel to workshops out of their county. Workshops will also be recorded so that interested business owners can view them at their convenience and as needed in the future.

The Real Deal
Transition planning can take up to five years, and it’s never too early to get started. North Country business owners looking to transition their operations to new owners or a new ownership model, as well as aspiring entrepreneurs looking to take over an existing business, can contact the Center at transitions@adirondack.org or 518-891-6200 for more information or to be connected with a community liaison in your county.

Let’s work together to keep businesses in the north country and continue to grow the beautiful region that we all love to live, work and play in!

Michael Besaw is a native of Massena, and the Assistant Director/CBIT Liaison of the St. Lawrence County Chamber.

Best Stories Of the North Country Are Its Human Ones

Rande Richardson

“I am bound to them, though I cannot look into their eyes or hear their voices. I honor their history. I cherish their lives. I will tell their story. I will remember them.” — Author unknown

Funeral directors don’t deal well with mortality. Staring daily into the face of death has many effects, including a continual awareness of the fragility and transitory nature of life. At the same time, it has a way of helping sort through the things that matter, creating urgency around living your life with purpose and meaning.

    Last month, one of my funeral director mentors died at the age of 80. There were feelings of regret for not having had that last conversation, that last opportunity to say “thank-you” for the way he shaped my life. I learned so much from him and his son. In many ways, his funeral service served to provide the bridge to the next step in accepting a world without him in it. In that moment, too, as I witnessed the memorializing of someone who had always been on the other side of serving families in need, the importance of remembering became even more fundamental. In so doing, we remind ourselves that each of us, in our own time, is responsible for carrying on, just as those who have come before us.

    I am often asked where I work, what I do. In many ways, what I do is very similar to what I did as a funeral director. I am the temporary custodian of something preciously valued. I am honored with the duty of care in honoring the memory of our community’s people. Ultimately, the stories of the north country are its human ones; people who, during their lifetimes, lived, loved and cared in a way that affected others.

    I prefer to answer the question of why I do what I do. I feel a tremendous obligation to tell our community’s stories honorably in a way that helps ensure that those who have come before us are lovingly remembered. Perhaps more lasting, though, is how their lives provided an example of a continuum of care for where they spent their lives — the teacher who left an imprint on thousands, the doctor or nurse who was there to comfort and heal, the person from any walk of life who simply chose to make a difference. Not only is it right to honor these legacies, it is how others are inspired to continue that tradition.

    After a decade at the Community Foundation, I’ve been there long enough to carry out the wishes of those whom I had previous conversations regarding how they intended their support of important causes to endure when they were gone. Because of their thoughtful planning, they continue to support the people, places and organizations of the region with consistent, thoughtful, lasting care.

    At the end of the day, the things that make our community more than average are made possible by the work and mission of our region’s charitable organizations, through the support of donors of time, talent and treasure. Many caring citizens have partnered with nonprofit organizations as a tangible expression of their interests and values. These range from education, health care, a wide scope of human services, animal welfare, arts and culture, history and recreation.

    The early citizens who made gifts to build the Community Foundation did so long before many of today’s needs were clearly apparent. A donor in 1929 likely would not have anticipated the desire to offer hospice services in the region 50 years later. They would be pleased to know that the stewardship of their desire for a better community could impact lives in meaningful ways far into the future. It is hard to separate honoring one’s memory and telling the story of the forever effect of their existence. Just as matter is neither created nor destroyed, kindness, caring and generosity has an extended half-life. One way or another, each of us is forever part of our community’s story.

    In a recent CBS “On The Road” feature, Steve Hartman remembered his dad, stating “His death makes me an orphan. I can tell you this is a unique kind of emptiness. When there is no one left on earth to love you quite so unconditionally.” Sooner or later, we all can relate. “Although losing such a parent can feel like kryptonite, remembering them in all their glory can make your heart fly.”

We are at the intersection of today and tomorrow. Remember that our own lives will continue to ripple throughout our communities for a long time to come. Be ever aware of the story you were born to tell. Focus not only what you leave behind but what you made possible. Not so much for the gifts you give, but the love behind them. Do so with purpose so that others will want to remember you in ways that causes many more hearts to fly and the goodness in our communities and its organizations to endure across the generations.               

 

20 Questions: Changing Adoption Standards

DAYTONA NILES / NNY BUSINESS
Executive Director of the Jefferson County SPCA Heather Spezzano.

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