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As everyone knows, owning and operating a small business is risky. According to the U.S. Small Business Administration (SBA), 50 percent of new businesses will survive five years or more. The percentage of businesses that will survive 10 or more years is only 33 percent. The probability of survival increases with the firm’s age. It […]
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As everyone knows, owning and operating a small business is risky. According to the U.S. Small Business Administration (SBA), 50 percent of new businesses will survive five years or more. The percentage of businesses that will survive 10 or more years is only 33 percent. The probability of survival increases with the firm’s age. It is striking that the survival rates have changed very little over time. So, why do businesses fail? There are a number of reasons.
For starters, most new business owners seem to have completed little to no research before hand. When people are thinking about starting a new business, they must research the following: the industry, the market, the customer, and the competition. Many questions surround those considerations. You must completely understand the industry you wish to enter. Working in that industry, researching that sector, familiarizing yourself with the dos and don’ts of that industry is a must. If you have no prior experience in the industry in which you wish to start a business, you’re already setting yourself up for failure. Make sure you research your market. Where will you sell and how will you sell? Knowing your market, and how to reach it, is incredibly important. Research who your customer will be. Know the customer’s demographic. Complete surveys to see if in fact the person you think will be your customer, is indeed your customer. Lastly, research your competition. There are two kinds of competitors — indirect and direct. Indirect is in the same field but perhaps has a slightly different focus. For example, you are a chiropractor and I am a chiropractor, but you see prenatal patients and I see athletes. Direct competition is when we both see prenatal patients. No matter what you sell or provide the customer with, you have competition. Customers can choose to spend their money on anything they wish, so you will always have competitors. Know who they are — both currently and potentially.
Another reason why businesses fail is that they are undercapitalized from the start. That means you’re always playing catch up financially. You need to research your costs to get started. Do the numbers make sense? When you apply for a loan in the amount needed for your startup costs, make sure you are also incorporating some working capital for those first few months. Working capital is a cushion to use for the first three to six months of operating expenses. If a lender comes back to you with a lower amount than requested, make sure you reexamine the numbers for your business. If you don’t adjust the startup costs to take into account the reduced financing, then you will be playing catch up from the start. For example, consider the story a business owner who was seeking $50,000 from the lender, and had $5,000 of her own money as a down payment. The total project cost was $55,000. The lender came back and offered the client $40,000 ($10,000 less than the $50,000 loan request). That $10,000 difference in the loan really ended up hurting the client because she was undercapitalized. She never went back and reexamined the numbers to make changes to the startup costs without having the extra $10,000. This put her financially behind the eight-ball from the onset of the business.
Businesses also fail because sometimes the owners are so good at making the products or providing the services, they forget all that comes with owning a business. Having management skills is a must. You must not only know how to do the job, but also how to run a business. You have bills to pay, employees to manage, projects to oversee, and much more. Management skills involve not just managing your employees, but also your time, day-to-day operations, and your clients. Organization will help you a ton in this area. A good inventory system might be the ticket, Quick Books could be the answer, or even a calendar. Whatever will help you better manage your business is an absolute consideration before you even open the doors to doing business.
Lastly, another reason that businesses fail is that they have little or no compliance with laws and regulations. Know what is required of you by law. Do you have to have permits to operate? Do you need special licenses? Did you get your employer identification number, certificate of authority, or your entity paperwork filled out correctly? If any of these things are overwhelming to you, contact the experts. For example, filing for an LLC or a corporation can be confusing. Hire an attorney to do it properly. Once a lawyer told our office he makes more money on the people who tried to establish their entity on their own than the people who just hired him to do it in the beginning. If you feel it’s too expensive to hire an attorney, then you are probably undercapitalized. Go to the experts in the areas in which you are not an expert. Make sure you have taken all the steps possible to be prepared.
Starting a business is not impossible. The biggest thing is to seek assistance. Research everything before you dive in head first. Be as prepared as best as you can. Will you know everything? Of course not. Each year is a new learning experience of how to do business better, more efficiently, and more effectively. Don’t stop trying to learn, research, or look for better strategies.
Melissa Zomro Davis, a former small-business owner in the equine industry, is a New York State-certified business advisor at the Small Business Development Center at Onondaga Community College. Contact her at m.l.zomro@sunyocc.edu or call (315) 498-6066.
PAR Technology forges Internet-of-things partnership with TempAlert
NEW HARTFORD — ParTech, Inc., a New Hartford–based global provider of point-of- (POS) systems to the restaurant and retail market, recently announced that it has formed xs an Internet of things (IoT) integration partnership with TempAlert, a Boston–based firm specializing in temperature monitoring. TempAlert will integrate with PAR’s SureCheck Advantage food safety system to enable
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NEW HARTFORD — ParTech, Inc., a New Hartford–based global provider of point-of- (POS) systems to the restaurant and retail market, recently announced that it has formed xs an Internet of things (IoT) integration partnership with TempAlert, a Boston–based firm specializing in temperature monitoring.
TempAlert will integrate with PAR’s SureCheck Advantage food safety system to enable 24/7 remote monitoring to ensure “critical” temperatures of food are captured, monitored, and maintained in kitchens, serving areas, holding areas, and while in transit, according to a ParTech news release.
“This exciting partnership with TempAlert will expand PAR’s product offering for grocery, contract food, C-Store, fast casual, and quick-service restaurants,” John Sammon III, GM of SureCheck at ParTech, said in the release. “The decision to partner with TempAlert was driven largely by organic demand from our customer base. We have a number of pilots in place with both existing and potential new customers. The enthusiasm for the combined solution underscores the value proposition for our customers.”
No financial terms of the partnership were disclosed.
ParTech is a wholly owned subsidiary of PAR Technology Corp. (NYSE: PAR).
PAR SureCheck is a mobile client-based, automated system that provides checklist management for hazard analysis amd critical control points food-safety programs and employee-assigned tasks, the company said. The SureCheck platform includes a mobile application, a multi-mode wireless temperature-measuring device, and a cloud-based enterprise configuration and reporting server application. SureCheck is currently deployed at 14,000 distinct locations globally, the company said.
TempAlert, founded in 2005, automates monitoring for food and medication safety and compliance, and monitors critical equipment and tanks for product quality and preventive maintenance. The TempAlert systems are deployed at more than 2,000 organizations in 75 countries, including Walmart, CVS Health, SpaceX, Apple, Coca Cola, McDonald’s, and the U.S. Department of State, the release stated.
STR report: Onondaga County hotel occupancy rate plunges nearly 13 percent in April
Hotels in Onondaga County were significantly less full in April compared to a year ago, according to a recent report. The hotel occupancy rate (rooms sold as a percentage of rooms available) in the county declined 12.9 percent to 56.8 percent in April from 65.2 percent in the year-ago month, according to STR, a Tennessee–based
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Hotels in Onondaga County were significantly less full in April compared to a year ago, according to a recent report.
The hotel occupancy rate (rooms sold as a percentage of rooms available) in the county declined 12.9 percent to 56.8 percent in April from 65.2 percent in the year-ago month, according to STR, a Tennessee–based hotel market data and analytics company. Onondaga County’s occupancy rate has now declined in seven of the last nine months.
Revenue per available room (RevPar), a key industry gauge that measures how much money hotels are bringing in per available room, plummeted 16 percent to $55.06 this April from $65.56 in April 2016. RevPar in the county has also dropped in seven of the past nine months, per STR.
Average daily rate (or ADR), which represents the average rental rate for a sold room, slipped 3.6 percent to $96.89 in April from $100.49 a year earlier. However, ADR had edged up in each of the prior six months.
A factor that may be contributing to Syracuse’s slumping occupancy rate and RevPar statistics is the increase in supply of hotel rooms in the market in the last year with two key projects adding nearly 400 rooms, alone. That includes the opening of the 134-room Aloft Syracuse Inner Harbor hotel last July and the reopening of the former Hotel Syracuse as the 261-room Marriott Syracuse Downtown last August.
The Budget Process Remains Broken
Think about this for a moment: Two days away from a federal shutdown, Congress comes up with a stopgap measure to keep the government operating — for a week. A few days later, it arrives at a bipartisan budget deal lasting a bit over four months. This, in turn, moves the president to take to
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Think about this for a moment: Two days away from a federal shutdown, Congress comes up with a stopgap measure to keep the government operating — for a week. A few days later, it arrives at a bipartisan budget deal lasting a bit over four months. This, in turn, moves the president to take to Twitter with the following statement: “Our country needs a good ‘shutdown’ in September to fix mess!”
With respect to President Trump, this assertion seems more focused on settling political scores than on the good of the country. I believe there is no “good” shutdown. The last time it happened, in 2013, it cost the economy $24 billion, according to Standard & Poor’s at the time. National institutions get shuttered, federal loans and support for veterans are frozen, state and local governments face cash shortages, and the country’s most economically vulnerable must fend for themselves.
We’re the world’s greatest democracy, and every few months we must contemplate the very real possibility that the government might close its doors. How can it be that the most important document of the federal government — remember, the budget is the national blueprint for what we’ll do and how we’ll do it — gets handled in such a distressing, irrational, ineffective, uneconomic, and almost nonsensical manner? I’ll tell you how: We keep electing people who tell us they’re distressed about conducting business in this fashion and then year after year fail to get us back on track.
Because make no mistake, we know how to do it better. Congress did it for many decades. We had a steady annual process that offered the country a democratic and politically rational mechanism for deciding on our priorities and how to fund them.
We haven’t followed it since the middle of the 1990s. Instead, we’ve been forced to live with high-stakes fiscal brinksmanship. The current budget deal, negotiated between Republicans and Democrats, has the virtue of having included both parties at the table with give and take on both sides. But let’s not mistake it for good process. Congress is still putting the budget together with no accountability, no transparency, and scanty debate.
This is a real challenge to our representative democracy. The government faces enormous responsibilities at home and abroad, and the budget is the blueprint for how it’s going to deal with them. Isn’t it time we started getting it right?
Lee Hamilton is a senior advisor for the Indiana University (IU) Center on Representative Government, distinguished scholar at the IU School of Global and International Studies, and professor of practice at the IU School of Public and Environmental Affairs. Hamilton, a Democrat, was a member of the U.S. House of Representatives for 34 years, representing a district in south central Indiana.
New York Needs A Climate Where Small Businesses Can Flourish
Some of us are getting back out in our gardens right about now. We’re starting to feel the warmth of spring and things are beginning to grow. It takes a lot of care and the right climate for our plants to flourish. The same could be said about growing our small businesses. New York recently
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Some of us are getting back out in our gardens right about now. We’re starting to feel the warmth of spring and things are beginning to grow. It takes a lot of care and the right climate for our plants to flourish. The same could be said about growing our small businesses.
New York recently celebrated Small Business Day and I know many of us can think of the small mom-and-pop shops that we love in our communities. Yet, New York State government continues to play a role that is contrary to the efforts of small-business entrepreneurs.
Recently, the Tax Foundation, a non-partisan tax policy institution, ranked New York 49th in its 2017 State Business Tax Climate Index. Albany in many ways has allowed life-sucking weeds to grow — making what was the Empire State’s once fertile soil of economic growth turn hard and sunbaked. State government has imposed numerous fees, fines, and other red-tape policies that have nearly choked out small businesses, and made our state one of the most taxed in the country. I am thankful for those who, despite little respite or relief, have been able to open their doors and kept at it for as long as they have.
Studies suggest that for every $100, roughly $68 is generated in local economic activity. Furthermore, small businesses are the biggest employers in the state. The multiplier effect is evident.
So, shouldn’t New York State do everything it can to clear the way for small business growth?
The state government should be weeding out excessive taxes and fees on small businesses, which stunt growth. Flashy programs with no meat on the bone like the governor has proposed can do nothing if the barriers to growth remain.
I am proud to be a member of the Assembly Committee on Economic Development, Job Creation, Commerce and Industry, where I advocate on behalf of Main Street small businesses. I am also a sponsor of the following several pieces of legislation that would clear the field for new growth.
• Small Business Full Employment Act (A.5423) — Reduces the tax burden on small businesses and would tackle the problem of overregulation in the state;
• Grow NY (A.6105) — Creates a pilot program that would provide grants to economic development agencies to assist second-stage small businesses;
• Eliminate Manufacturing Taxes (A.6758) — Removes the two most egregious and difficult taxes for manufacturers called the Corporate Franchise Tax, or what can be known as the job-killing tax, and the Personal Income Tax on manufacturers; and
• Learning for Work Program (A.4333) — Establishes a three-part program designed to create career-ready people upon high-school graduation. It would create a youth-apprenticeship program, an enhanced Regents professional degree and a youth-apprenticeship tax credit for the business.
New York State simply cannot say it’s for job and economic growth by throwing money at the problem. It must roll up its sleeves and dig in, uprooting every bad policy that gets in the way of small-business growth. I am willing to do it and I urge my colleagues to join me.
Marc W. Butler (R,C,I–Newport) is a New York State Assemblyman for the 118th District, which encompasses parts of Oneida, Herkimer, and St. Lawrence counties, as well as all of Hamilton and Fulton counties. Contact him at butlerm@assembly.state.ny.us
Bryan T. Arnault has been named a partner in the law firm, Blitman & King LLP. He received his bachelor’s degree from Binghamton University, and went on to obtain his J.D. from the Boston University School of Law, where he served on the Public Interest Law Journal.
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Bryan T. Arnault has been named a partner in the law firm, Blitman & King LLP. He received his bachelor’s degree from Binghamton University, and went on to obtain his J.D. from the Boston University School of Law, where he served on the Public Interest Law Journal.
Enterprise Rent-A-Car and National Car rental recently promoted Lauren Jeckovich to sales manager for the Syracuse and Central New York region. She is responsible for new business development for this market. Enterprise Holdings recently promoted Keelin Moore to remarketing sales manager of the Syracuse market. She manages a team that sells rental vehicles in a wholesale capacity
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Enterprise Rent-A-Car and National Car rental recently promoted Lauren Jeckovich to sales manager for the Syracuse and Central New York region. She is responsible for new business development for this market. Enterprise Holdings recently promoted Keelin Moore to remarketing sales manager of the Syracuse market. She manages a team that sells rental vehicles in a wholesale capacity in upstate New York.
CenterState CEO has hired CAITLIN MORIARTY as its instructional design manager, and BEVERLY MACK as administrative specialist at CenterState CEO’s The Tech Garden. Moriarty comes
John Hornbarger has joined the Syracuse branch of AXA Advisors, LLC as a financial professional. He has a marketing major in communications from Le Moyne College, and additionally has earned his Life and Health, Series 6, and Series 63 licenses.
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John Hornbarger has joined the Syracuse branch of AXA Advisors, LLC as a financial professional. He has a marketing major in communications from Le Moyne College, and additionally has earned his Life and Health, Series 6, and Series 63 licenses.
Eastern Shore Associates Insurance
Missy Calverase has been promoted to senior VP at Eastern Shore Associates Insurance (ESA). She was formerly VP/treasurer. Calverase started at ESA in 1993 as a bookkeeper. In 2002, she was promoted to accounting administrator, and in 2008 she was named VP/treasurer and joined the firm’s board of directors. Kimberly Allen recently joined ESA as assistant
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Missy Calverase has been promoted to senior VP at Eastern Shore Associates Insurance (ESA). She was formerly VP/treasurer. Calverase started at ESA in 1993 as a bookkeeper. In 2002, she was promoted to accounting administrator, and in 2008 she was named VP/treasurer and joined the firm’s board of directors. Kimberly Allen recently joined ESA as assistant operations manager. She is a state-licensed insurance broker. Allen studied at Canisius College, where she earned a bachelor’s degree in marketing. Before joining ESA, she worked nearly 15 years at Stewart Title. During that time, she served as VP, senior operations manager, for 11 years, and, most recently, as senior business development officer.
Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.