Small Business Boomers

Journaling Your Small Business

As I sorted through some of my mother’s collection of memorabilia, I came across lists and letters and account summaries of her years operating a small country general store on the edge of our farm property.

Image:sxc.hu

My dad and a friend built it and the friend managed the business.  When he had a heart attack, Mother (a former school teacher, who had no storekeeping experience) decided she would operate it.  So during my last year of high school and my college years, I spend weekends and vacations working at the store and on the farm my father owned.

Mother didn’t make a fortune.  In fact, she generally lost money because she was so kindhearted and trusting.  However, she did affect her customers’ lives because so many wrote me after she died, telling me how much she meant to them.

I need to find time to compile her notes and snippets of information, along with photos, into a journal or scrapbook, chronicling her years as a country storekeeper.  This would be an interesting item to have for our family heritage.

Why not journal your business?  Start where your are, then write down the beginnings as you recall them.  If you’re just starting a small business, keep a daily log.  It doesn’t have to be much, but will be a good business information journal and something of interest to family in years to come.

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By Jean -- 0 comments

Mary Emma Allen - New Blogger at Small Business Boomers

I shall be blogging here at Small Business Boomers and helping you with business tips.  Jean Murray has done a fantastic job with  the Small Business Boomers blog.  I hope I can provide you with the same degree of helpful information.

Image: sxc.hu

I also blog at b5’s Home Biz Notes, My Organized Biz and write at Blisstree’s Parenting and Arts/Crafts sections. I’ve been involved in family businesses and home businesses all of my life.  Currently my husband and I work from home.  In addition I do substitute teaching during the school year.

Also, I invite you to share your boomer business experiences with us here at Small Business Boomers.

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By Mary Emma Allen -- 0 comments

Goodbye, Boomers

I have been writing for Small Business Boomers for almost 18 months.  I feel I found a home here and cut my teeth, so to speak, on blogging.  But it’s time to move on. In February I started doing the daily Small Business section for b5media’s Bizzia portal, and I find myself torn between that assignment, Small Business Boomers, and Home Biz Notes. So today is my last day at Small Business Boomers.

I have enjoyed writing about Baby Boomers in small businesses, learning about how Boomers have managed to succeed…and sometimes fail.  I have learned from experts like Jeff Thredgold and Bill Losey.  And I discovered the top holiday movies of all time.  I hope you have learned, and laughed, and cried, along with me.

A couple of final thoughts:

Baby Boomers are under-appreciated, discriminated against, and ignored.  It still bothers me that I can’t find photos of baby boomers anywhere.  Someone needs to start a boomers photo service.  When there are layoffs, Boomers are being laid off first.  Experience is not appreciated.

We Boomers were cut out of our defined benefit pensions and told, “Go invest all this money on your own.”  Then when our investments lost 30-40 percent, who was there to bail us out?  We got caught in a Perfect Storm - lost pensions - depleted 401(k)s and - mark my words - reduced Social Security benefits.

Despite that, we are large, and strong, and really great people.  We’ll figure a way out of this.  We protested Vietnam, marched with Martin Luther King Jr, created the Beatles, and put a man on the moon. We can do anything.  Including becoming successful business people.

Thanks, Boomers!

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By Jean -- 5 comments

No Bailout for Newspapers, Please!

I hear the Senate is thinking of introducing legislation that would bail out newspapers.  A bill, sponsored by Maryland Senator Cardin, has been introduced that would allow newspapers to operate as “educational” non-profits as long as they don’t endorse political candidates.  Everyone has their hands out for help these days, but this bill is ill-considered and should not be passed.

Here is why I’m opposed to a bill that would “bail out” newspapers:

It threatens the independence of newspaper journalism.  Journalism is about expression of opinion, including opinions about political candidates, elected officials, and legislation.  It’s called “Freedom of the Press” and it’s one of the U.S. constitutions mos basic elements.  If newspapers are not allowed to express opinions, what good are they?  Why even bother having them?

Why save a dying industry? Sure a lot of newspapers will fail, but maybe their time has passed.  I have written before about newspapers falling out of favor with the public and being replaced by the Internet.  When radio was failing because of the advent of television, did anyone propose a “bailout” of the radio industry?  Nope.  Radio found new markets and new concepts and re-configured itself.  Newspapers might have to do the same.  Their time has passed and we now get our news from the Internet; the Times they are a changing.

Bailouts don’t help the people that need them. I am opposed to bailouts on principle, because they go against our free enterprise system and the concepts of capitalism.  If a business can’t help itself, why should the government step in?  I marginally agreed with the bailout of the auto companies, but only because that industry is so critical to the U.S. economy.  But it didn’t help the employees; it just put more money into the pockets of the union and management.  And it gave the companies no incentive to figure out what went wrong and try to fix it.  Why would I try to fix my problems when someone will keep giving me money for NOT fixing them?

These bailouts are costing the U.S. taxpayers billions of dollars.  If we keep bailing out everyone who has a hand out, the U.S. economy will be bankrupt, our tax bills will be astronomical, and inflation will be rampant.  You can’t spend money on charity when you don’t have enough to pay the bills.  It doesn’t work for my household budget, and it won’t work for the U.S. budget either.

My solution: Let’s all settle down and get to work to figure out our individual problems and become a more productive nation.  Increasing productivity is the only way we can beat this recession and avoid the other evils of trying to fix it.

Image source: Wheany@Flickr

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Baby Boomers Leading Non-Profits

A year ago I wrote about non-profits and how many Baby Boomers are finding new careers by working in and leading them.  The non-profits, like other businesses, are facing a “crisis of leadership” as baby boomers retire.  An article in OnPhilanthropy says 65% of non-profits anticipate a leadership change by 2009.  The article notes that many baby boomers are “disinclined” to retire completely (I would agree with that statement).  Maybe this is the time to consider a different type of job,with a non-profit group where you can make a difference.

Now, I find myself in that position - working in non-profits.  I helped start a non-profit a last year, and now I seem to be the “expert” on starting non-profits among people I know.  I have advised two other non-profits on how to get started.  The first non-profit, Journey to Solidarity, is about chiropractors living and working in Third World countries to help people, not only through chiropractic care but also to find ways to help them be healthier and live longer.

Last fall, I helped Journey to Solidarity incorporate and apply for 501(c)(3) status.  That was quite an interesting experience.  Of course, I worked with an attorney, who did the filing, but I learned a lot along the way.  Now, I’m a board member, and I am enjoying this experience too.

If you get an opportunity to work in a non-profit - as a board member, volunteer, or paid staff - take it.  Every experience enriches us, and the experience of giving is particularly enriching.

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By Jean -- 2 comments

Fighting for Social Security - Your Help is Needed!

We Baby Boomers are powerful.  At some 70 million strong, we have a lot of clout.  And we may need it in the coming years, if “entitlement reform” (euphemism for cutting Social Security benefits) starts rolling.

President Obama has committed to “entitlement reform” as a way to save the younger generations from having to pay for our Social Security benefits.  But the market crash has already taken away our other savings.  Why take our Social Security too?

I read an excellent blog post on Time Goes By recently.  The author, Ronni Bennett, warns us that it won’t be long until we will need to speak up.  We have lost our 401k savings, our homes are worth less, and we can’t even find a place to park our savings to get a decent return.

And now they want to cut Social Security.  The first cut will be to take off the maximum earnings cap.  Since the cap is currently $106,800, only wealthier individuals will be affected.  But if the caps on benefits are also increased, there won’t be much savings from that.  Next, the “full retirement” age will be increased.  That will mean reduced benefits for most of us, unless we wait longer to start taking Social Security.

I figure the third step will be further cuts in benefits over the next few years, until inflation will take away a substantial part of our benefits, and we’ll all have to hope our 401k’s bounce back.

If you want to learn more about this issue, read Ronni’s excellent post on Time Goes By, and also read the article by James Galbraith at Washington Monthly.  And get ready to fight… the time will come.

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By Jean -- 2 comments

When is it Time to Give Up on Your Business?

Bed and breakfast businesses have taken a big hit with the recession.  As you probably have experienced first-hand, travel is the first discretionary spending to be cut when people are feeling a pinch, and baby boomers, the big travelers, are guarding their 401-k’s like crazy.

My favorite B&B has experienced this problem.  I wrote about Olde World B&B last year, after the new owners took over.  They are gone now, victims of the downturn and the very slow travel market.  The old owner took over the business, for which I’m thankful.  But I got to thinking about how difficult it must be to make the decision to close a business.

My husband owned a rental business in the late 1980s and he experienced the same thing - he had to close within the first year because he just didn’t have enough capital to keep it going.  So how do you know when to give up on your business?

The first sign. The first indication that you will have to close is when you can’t pay your bills.  That sounds obvious, but for many small businesses, it may seem like a temporary situation.  They keep thinking, “It will get better.  We’ll sell more next month and things will be fine.”  Then next month comes and the negative cash situation continues.

The next sign. After a few months of not being able to pay the bills, two things happen:  You begin to think, “Maybe I’m not going to make it,” but also, “This is just temporary.  I will get more cash to ride it out until things start improving.”  You start using your business and personal credit cards to finance day-to-day operations.

The next sign. Soon it becomes apparent that you might be able to let a few bills slide, but you can’t ‘make payroll.’ Since it’s not likely that people will continue to work for you if you don’t pay them, you have to lay some off.  You try to keep a few, but when you can’t pay even those few, it gets closer to the time to shut the doors.

The final sign. When you can’t make the monthly payments on your bank loan, the loan manager calls you in for a talk.  At that point, you realize you aren’t going to get out of this without either (a) Winning the lottery or (b) Having someone hand you a wad of money.  So you talk to your attorney about business bankruptcy.  Maybe you can keep going in Chapter 11.  Most likely you can’t.

At the end. You announce that you are closing the doors.  You have an auction, like my husband did, and get as much money as you can from your business assets in order to pay the bills. You don’t want to see any creditors get stuck, but the bank wants its money first, and the rest of them get what is left over.

After a few months, the hurt fades a little, but not much.  And you think, “If only I had had a little more time, another ad, another sale, a few more customers…a little more money.”

The mark of a true entrepreneur is the person who says, “I’d like to try again.”

Image: StockXpert

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Remembering a Friend

A friend of mine - another Baby Boomer - died last weekend and I went to his memorial service a few days ago.  What struck me was the old photos in the video slide show - they could have been mine … or yours.

• On a pony. Remember when they used to have traveling photographers who came around and took pictures of children on ponies?   I have a similar picture.

• On stair steps. In one photo he was standing on the steps of his house with his brother and sister.

• In snowsuits. I was touched by the photo of him in a snowsuit in the snowy yard.  I have one of my sister and I walking home from school in our snowsuits, carrying our book bags.

• High school graduation. Those goofy photos in graduation garb were so funny, remember?

I hate to see someone die so young - he was only 54.  His death reminds me of how precious our lives are and how we take them for granted.  I also am sad because I didn’t keep in touch and I could have easily.  I could have sent him emails letting him know I was thinking about him during his illness.  I could have actually sent him a letter - what a concept!

Every time someone dear to me dies I resolve to keep in touch with others who mean a lot to me.  How about you?  Have you lost a friend recently? Is there someone you have been thinking about, maybe someone who is ill or who is sad or who just needs a friend?

Take a minute, please, and send a note TODAY to a special friend letting that person know how much they mean to you.  Don’t wait.  You may not have tomorrow.

Image: Jean Murray

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Are Baby Boomers TOO Qualified?

Many of us Baby Boomers are heading back into the job market, either as a result of retirement finances that don’t meet our income needs or because we have been laid off from our jobs.  If you aren’t ready to retire yet, you might be surprised to learn that those young recruiters and HR people think you should be.  And your big resume could be a negative instead of a positive.

Too Qualified? The Wall Street Journal reports that many former high-level business types are finding it difficult to make the transition to smaller level jobs.  In my case, with an MBA and a PhD and many years’ experience as an administrator and college teacher, I would find it very difficult to find someone who would take me on as, say, a receptionist or an accounting clerk.

Recruiter’s Point of View. I have been on the other side of the desk, many years ago.  I did hiring for a large manufacturing company - some factory but lots of office workers.  I was always skeptical of the person who came in with a loaded resume and lots of experience who said she or he wanted to downsize their work.  I figured they wouldn’t be happy long and wouldn’t stay.

Other Side of the Desk. Now that I am on the other side of the desk, I can see I was wrong.  There are lots of reasons why someone older with much experience might want to scale down their work to something lighter and less responsible.

To the recruiters. If you are sitting across from a skeptical recruiter, you might want to remind him or her:

• The average time spent in a job is about 2 years.  Then younger people move on. But an older worker is more likely to stay.
• You might be able to hire an older person to work part-time, saving on health plan benefits.
• Older people are more reliable and less likely to miss work for childcare reasons.
• Adding a mature worker to the mix in your office can have a calming effect on the younger workers.  They might enjoy having someone to turn to for advice.
• Older workers are more knowledgeable about work in general and their expectations are lower.  This doesn’t mean you shouldn’t pay them what they are worth, but you can give them a task and expect it will get done with fewer questions and less “fuss.”

It goes without saying that recruiters are more tuned-in to age discrimination complaints these days, so maybe you won’t have to say anything at all. If you are looking for a job, I would be interested in what you encounter in the wonderful world of employment search.

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By Jean -- 2 comments

Selling Your Business - Be Your Own Banker

If you are a Baby Boomer who is trying to sell a business, this is obviously a difficult time. I know of several professionals who are trying to sell practices, and they are finding that they must “be the banker” for the transaction, since the buyer cannot get bank financing.

A recent Wall Street Journal Small Business Link article notes that small business owners are increasingly forced to provide contracts for buyers.  If you need to sell your business, here a couple of tips:

Get Your Business in Order. I mean, clean up.  Clean the offices and your production areas before you invite potential buyers.

Prepare financial documents. Buyers will want to see your business tax returns for at least three years, your sales for the past two years, and all contracts you have signed with vendors. As part of the sales process, you will need to have an appraisal of your property and of all assets; you can also have your CPA give you the depreciated value of equipment and vehicles.

Determine goodwill.  You will need to estimate the value of your customer base, to find goodwill.  Since goodwill is an intangible, you will have to substantiate it with sales figures.

Find your bottom line. Actually, you will need to have two figures in mind - a publicized sales price, and your actual bottom line, for the negotiations. The difference will probably be goodwill.

Determine your selling options. Think about the terms of a sales agreement that would be advantageous to you.  How long would you like to be paid?  How much would you want each month, each year?  Talk to your tax adviser and look at the effect of options on your tax situation.

Think about transition. How long do you want to stay to help smooth the transition?  A longer transition might help the buyer, but it might not be right for you.

Place Ads. BizBuySell and other online business advertisers (I wouldn’t call them brokers) can help you with online advertising.

Prepare contracts. You might want to get your attorney on board early, to prepare contract language if you need to act as the banker.

I will have more about negotiating business sales contracts later this week.  In the meantime, is it time for you to start thinking about selling?  One of the most difficult tasks is getting your mind around the idea that you are selling this business you worked so hard to create.

Image source: Newscom

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By Jean -- 0 comments