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.

               

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.

DEC Plays Critical Role in Strong Local Economies

Randy Young

If asked, few people would associate the New York State Department of Environmental Conservation (DEC) with economic development. However, DEC plays a critical role in maintenance and improvement of local strong economies. Indeed, our mission statement says that we protect and enhance the environment in part to protect the “…overall economic and social well-being …” of the people of the state.

    A few examples of DEC directly supporting local economies include our programs to clean up blighted properties with the hopes of redevelopment and returning these properties to the tax rolls.

    DEC’s Brownfield Cleanup Program (BCP) was established to support private-sector cleanups of contaminated properties and reduce development pressure on greenfields.  Tax credits are provided to parties that perform cleanup activities under the BCP to offset the costs associated with site investigation and cleanup, site preparation, and property improvements. Specific examples of sites that have been redeveloped under the BCP include abandoned gas stations, former factory and mill complexes, and foundries.

    DEC also assists with the cleanup of abandoned gas stations and other petroleum spill sites through the New York State Spill Fund. Within DEC Region 6, which includes Jefferson, Lewis, St. Lawrence, Oneida and Herkimer counties, DEC spent approximately $1 million in 2017-2018 to clean up six sites within the city of Rome, and we’re poised to invest an additional $1 million this year on nine sites in St. Lawrence County. 

    Once these cleanups are complete, the municipalities will be able to market the properties for redevelopment and place them back on the tax rolls. 

    Millions of dollars in grants are also awarded to assist local communities with infrastructure improvement assistance. In Jefferson County, the village of Adams was recently awarded a Water Quality Improvement Project (WQIP) grant of $1 million for extensive improvements to its 38-year-old wastewater treatment facility. These improvements to the nearly 40-year-old wastewater treatment facility include the addition of disinfection equipment, which will substantially reduce the number of microorganisms discharged into Sandy Creek.

    “This award supports a much-needed project that the village of Adams has been planned for some time, and the grant will help the village to move it forward,” said David Rarick, DEC Region 6 regional water engineer.

    The WQIP program is a competitive, reimbursement grant program that funds projects that directly address documented water quality impairments. The village of Adams, plus 10 other municipalities and not-for-profits in Region 6 received WQIP awards totaling nearly $4.5 million.

    The town of Theresa was awarded $325,000 to build a new salt storage facility at the town’s highway department, while Thousand Islands Land Trust (TILT) was awarded $555,771 for a land acquisition project for source water protection. TILT plans to place perpetual conservation easements on six parcels of land totaling more than 310 acres of undeveloped habitat and three miles of vegetated shoreline and riparian habitat in the town of Clayton. This project will protect riparian vegetation, natural shoreline, and the surface water quality of the St. Lawrence River.

    The awards were announced mid-December 2018 and affect many statewide communities. Governor Cuomo announced more than $103 million in grants for a statewide total of 124 projects. While all WQIP projects will improve water quality, reduce the potential for harmful algal blooms and protect drinking water statewide, these funds provide an economic benefit, as well. Communities that can improve and expand wastewater collection and treatment capacity are better positioned to accommodate residential and commercial growth opportunities.

    “Access to clean water is critical to the health, safety, and economic wellbeing of our communities. With Governor Cuomo’s leadership, New York is investing millions of dollars to protect and restore invaluable water resources statewide and addressing growing threats like harmful algal blooms,” said DEC Commissioner Basil Seggos.

    In other promising economic news, 12 municipalities in Region 6 received Engineering Planning Grant (EPG) awards totaling about $600,000. This includes $30,000 for the village of Dexter Wastewater Treatment Plant Disinfection Study. The EPG program funds engineering studies that will ultimately lead to wastewater treatment improvement projects that can be funded through the WQIP or other funding opportunities.

Randy Young is the regional attorney and acting regional director. He has been with the DEC for 25 years.

Realtor Association Awards, Inaugurate Boards of Directors

Lance Evans

December marks the end of the elected year for both the St. Lawrence County and the Jefferson-Lewis Boards of Realtors.  Both held their annual meetings which included the election and inauguration of new officers and directors and honoring those departing the Board of Directors. It also is the time of year that various awards are given and funds are raised for various community organizations.

St. Lawrence County Board of Realtors

    The St. Lawrence County Board of Realtors marked the end of the year with a lunch at the Gran View Restaurant in Ogdensburg on Dec. 14.  The occasion included awarding the Association’s first ever Realtor of the Year and Affiliate of the Year, a very successful auction conducted by Scott Boyer with proceeds going to area Neighborhood Centers, as well as inaugurating the 2019 Board of Directors.

    The Affiliate of the Year award is given to a non-Realtor member or member company.  Affiliates include bankers, lenders, home inspectors, media companies, etc. who have an interest in the real estate industry, but are not licensed to sell or appraise real estate. The award was given to Julie Derrigo-Inschert of Fairport Mortgage. Julie, a member for almost 30 years, was praised as having a high degree of knowledge about the industry, treating real estate buyers as VIPS, and having a level of commitment, professionalism, and compassion that makes her an asset to her profession.

    St. Lawrence County’s Realtor of the Year award is given to a realtor member (broker, appraiser, associate broker, or salesperson) who has made contributions to the realtor profession and their community.  This inaugural award was given to Jennifer Stevenson, broker-owner of Blue Heron Realty in Ogdensburg.  A member since 1990, Jennifer has held many offices locally including several terms as president. She served as the Adirondack Region Vice President for the NYS Association of Realtors (NYSAR) from 2009-2010, the 2018 NYSAR Secretary-Treasurer, and will be NYSAR’s President-Elect in 2019.  Jennifer also serves on the Ogdensburg City Council and has been president of her Rotary Club, president of Ogdensburg’s Chamber of Commerce, and is active in the SPCA.

    Jennifer Stevenson, in her capacity as a NYSAR Officer, also oversaw the inauguration of the 2019 Board of Directors. The 2019 President will be Richard J. Wood.  The rest of the team will be Brittany Matott (vice president), Elizabeth Trego (treasurer), Doug Hawkins (secretary), Debbie Gilson (immediate past president), Wendy Smith (state director), and three-year directors, Gail Abplanalp, Tracy Bernard, and Joel Howie.  Also recognized during the lunch was Amanda Kingsbury who served as Treasurer in 2017 and 2018.

Jefferson-Lewis Board of Realtors

    The Jefferson-Lewis Board of Realtors held its holiday dinner and inauguration on the evening of Dec. 13 at Watertown’s Hilton Garden Inn. Music for the evening was provided by Chuck Ruggiero.  During the dinner, the departing members of the Board of Directors were recognized, the 2019 Board of Directors were installed by NYSAR Central Region VP Don Radke, an Affiliate of the Year was named, and an auction was held which benefitted several charities including the Salvation Army, Watertown Urban Mission and Hospice.

    Northern Credit Union was recognized as the 2018 Affiliate of the Year.  Some of the reasons cited were their support for programs put on by the Realtor Association and the Women’s Council of Realtors Network, as well as their employees’ professionalism, knowledge, responsiveness, and enthusiasm.

    The Jefferson-Lewis Board will be led by Alfred Netto as 2019 President.  He will be assisted by Britt Abbey (president-Elect), Katharine Dickson (vice president), Mary Adair (treasurer), Nancy Rome (recording secretary), and Desiree Roberts (corresponding secretary). Rounding out the leadership team will be three-year directors Elizabeth Miller, Cindy Moyer, and Vickie Staie as well as one-year directors Daniel Bossuot and Michael Hall and State Director Walter Christensen.  Honored for their service as they departed the Board were Lisa Lowe (corresponding secretary) and Randy Raso (three-year director).

LANCE M. EVANS is the executive officer of the Jefferson-Lewis Board of Realtors and the St. Lawrence County Board of Realtors. Contact him at levans@nnymls.com. His column appears monthly in NNY Business.

Canton Engineering Degree Debuts: Mechatronics Program

CHRISTOPHER LENNEY / NNY BUSINESS
Assistant Professor J. Miles Canino, right, discusses a sensor developed by the Mechatronics program with Mechanical Engineering major Andrew Fitch.

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Thinking, Making and Igniting Inspiration

CHRISTOPHER LENNEY / NNY MAGAZINES
Managing Director of Clarkson Ignite Erin Draper checks out notes students have written on the walls of the Studio classroom.

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Airbnb Brings Income, Commerce to the North Country

Pictured here is a screen grab from the AirBnb website, www.airbnb.com. When you visit the website, you can search for places to stay and activities across the world.

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Small Business Startup: Lavender Lullabies

 

PHOTO PROVIDED BY LAVENDER LULLABIES

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Growing Our Workforce

Jay Matteson

Recently we completed the 2018 Jefferson County Agricultural Development Conference. It was an exciting program with a broad agenda that explored agriculture locally, at the state level and globally. In addition to the actual agenda for the conference, there were several efforts to grow our local agricultural workforce represented.  I didn’t realize until I stood at the podium and thanked everyone for attending, how these efforts were to be represented.

    On our agenda for the conference was our keynote speaker, Mr. Maurice (Moe) Russell.  Moe owns Russell Consulting Group, located in Iowa, which advises farmers not only in the United States, but around the World on marketing and financial issues.  Moe’s presentation focused on the outlook for agriculture in 2018 and beyond and explored the challenges and opportunities facing our farms.  Moe’s presentation was dynamic and challenging.  I expected that. What I wasn’t anticipating, and welcomed, was his message he gave for people coming in to agriculture.  Despite the crisis the dairy industry is in right now, Moe told the audience that there will still be tremendous opportunity for people to work in agriculture.  Even when challenged by a local farmer because of the dairy crisis, Moe stood his ground. He acknowledged the challenges faced by dairy farmers but said there is a future for farming in New York State, including dairy, and we need people, especially young people, to pursue the growing demand for agricultural products.

    In the audience at the conference were students from the agribusiness program at Jefferson Community College.  I had the opportunity to serve as an adjunct instructor for the Agricultural Law and Regulations course this semester.  Seven students, some of whom were present, participated in the class.   It was exciting to be the instructor for the class. As a one credit hour class, we just completed meeting for 2 hours a week for eight weeks to meet course requirements.  Every week the students came to class enthusiastic to learn more.  I challenged them with a course project in which each student had to identify an agribusiness they wanted to start and the community where they wanted to locate the business.  Throughout the eight weeks, the students had to identify the various laws impacting agriculture and especially their business.  The students had to contact resource specialists knowledgeable about the laws and regulations they would be impacted by.  Their task was to interview the specialists and learn how they could comply with the laws and regulations.  The students were tasked with presenting projects and their findings, to the class as if we were a municipal planning board. The project counted as 45% of their overall course grade. It was neat to see the students embrace the class and complete these projects.  To have the students attend the Ag Conference was encouraging as they were able to listen to several presenters provide an interesting, “60,000 feet” program on agriculture.

    Our final panel discussion at the Ag Conference featured Terrence Harris, Associate Vice President of Workforce Development at Jefferson Community College, Bill Stowell, Agriculture program teacher and FFA advisor at South Jefferson High School and Professor William Jones, Chief Diversity and Affirmative Action Officer at SUNY Canton. The three panelists discussed perspectives on the future of agriculture.  Their conversation discussed the strengths and weaknesses of our agricultural workforce.  It was interesting to hear each relate the opportunities they see and the demand for students to go into agriculture careers.  The use of technology in agriculture, each panelist agreed, should be a huge draw for the younger generations who are very interested in technology.  The three indicated that the agricultural industry fails, unfortunately, to emphasize how technology is used, which then results in losing students to other careers.   They encouraged everyone present to think about the messaging we are using to attract people in to the industry and how it might be imporved.

    As the Conference went on during the day, the conversations discussed the opportunities and challenges of working in agriculture.  It was interesting to observe how the need for people to come into agriculture was present in every discussion, it was better to see how there were young people around the room, who recognize this opportunity and are trying to pursue it.  Just in case you are interested in an agricultural career, we encourage you to visit mygpsforsuccess.com and explore the agriculture section of the website.

 

Suicide Prevention and Understanding in NNY

Bob Gorman

Suicide remains the death that dares not speak its name.

    Families often write around the word in obituaries to avoid citing the actual cause of death. Medical examiners are occasionally begged to do the same thing if writing the word “suicide” in their report will mean the loss of benefits for a grieving survivor with three small children.

    And all those drug overdoses? Local death statistics include actual question marks. That’s because even though investigators are pretty sure many of these deaths were intentional, they can’t be certain if there were no notes or witnesses.

    If you talk to first responders, nonprofit leaders and high school guidance counselors, you learn quickly that suicide is a topic that can no longer be avoided. Somebody this year will attempt suicide while in jail, or at a halfway house or after another evening of reading texts from a mob attacking the psyche of a solitary teenager.

    My one lone involvement with a suicide was the death of an employee at the Watertown Daily Times in 1999. Charlie Tenny took his life by hanging himself from a tree in his beloved Adirondacks. Because Charlie was a journalist, many other journalists tried to make sense of the senseless.

    One of Charlie’s friends, who worked at the Hartford Courant, wrote a column almost a year after Charlie’s death that included this: “The timing of his suicide remains incomprehensible to me. He did it while his sister, Carol, was in China adopting a baby girl. Carol got the news of Charlie’s death in Los Angeles, between flights on the way home to Pittsburgh. She screamed “No! No! No!” so loud that people came running across the terminal.

    Back home, Carol fell into depression.

    “I did feel my life changed unalterably from the moment I found out that Charlie did what he did,” Carol told me. “I would look at teenagers laughing, and I would just be amazed. They were like foreign animals. What are these people doing? There just seemed to be such a gulf between me and them.”

    In public places, Carol would suddenly blurt out, “I love you, Charlie.”

    “I thought I was saying it quietly, but people would look at me funnily… but I couldn’t talk to anybody without telling them about [Charlie’s suicide]; it was a central fact of my life.”

    To encourage a conversation about the value of life, the United Way of NNY in late March sponsored events at eight high schools and two evening programs with Roger Breisch of Batavia, Ill. Breisch has spent the last 15 years as a counselor on local and national suicide hotlines, often talking to teenagers who think their lives are useless.

    Breisch’ s talk, “Finding Life on the Suicide Hotline” challenged students to take an inventory of their own lives and find ways to value the person they are, and not give credence to a false narrative about who they aren’t.

    His uplifting message comes at a good time. The region’s suicide prevention coalitions in Jefferson, St. Lawrence and Lewis counties are working to reverse a trend that saw 163 people commit suicide in the three-county region over a five-year period.

    Kevin Contino, a data analyst for the Fort Drum Regional Health Planning Organization, has statistics collected locally and through the Centers for Disease Control and Prevention.

    In 2016, the suicide death rate per 100,000 population was:

  • 12.8 for the three-county region
  • 8.5 for New York State
  • 13.9 for the United States

 Over the most recent five years of federal data (2012-2016), the death rate due to suicide was:

  • 14.1 in Jefferson County (83 deaths, 16.6 per year)
  • 21.4 in Lewis County (29 deaths, 5.8 per year)
  • 9.2 in St. Lawrence County (51 deaths, 10.2 per year)
  • The most common mechanisms for suicide were firearms (48 percent), hanging/suffocation (31 percent), and poisoning (19 percent).
  • Eighty-four percent of decedents were male.
  • Sixty percent of suicide deaths were at the decedent’s home, 7 percent were in an outpatient medical facility, and 33 percent elsewhere.
  • During the five year span, the death rate per 100,000 people for the age groups 15-24, 34-44 and 65-74 was almost identical at just over 17 percent.
  • In 2016 residents of the tri-county region had 235 emergency department visits with a principal diagnosis of either suicide attempt or suicidal ideation. The numbers for each county were: Jefferson, 161; Lewis; 15 and St. Lawrence: 59. Seventy-one percent of these patients were younger than 30; the median age was 21 and the percentage of male and female was identical.

    And for every one of these cases, there are dozens of survivors, like Charlie’s sister, who still cry out a loved one’s name.

    As Roger Breisch showed the north country last month, there is never a wrong time to start having a regional conversation to help reduce that suffering.

Bob Gorman is president and CEO of United Way of Northern New York. Contact him at bgorman@unitedway-nny.org or 315-788-5631.