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Cal Wilson / November 24, 2021

Tips for passing on financial literacy to children and teens

November is Financial Literacy Month! While we at Schooley Mitchell have spent the month reflecting on good financial habits for business owners, we would be remiss not to note that an important part of financial literacy is passing on our knowledge to the entrepreneurs and professionals of the future.

In this issue of the Pulse, we share some advice for teaching school-age children and teens a few principles of financial literacy, so that they can build good habits going forward into the rest of their lives.

Children lack necessary financial fundamentals.

If you’re a parent, your child might come home from school with information about the quadratic formula, the biology of a cell, and a ton of Shakespeare, but there is less of a chance they’ve received dedicated education relating to financial literacy. This education is not only lacking at school, but at home, too.

The truth is, nearly half of parents report they miss opportunities to talk to their children about finances. A quarter feel a small to extreme degree of reluctance to have these discussions. At the same time, half of children are eager to learn.

It is better for children to learn financial literacy from their parents, rather than later in life, potentially after having made a costly mistake.

Start with the basics.

Sam X Renick has been teaching children about money since 2001, and uses his storybook character Sammy Rabbit to do so. Renick says the earlier you can start teaching children about financial literacy, the better. Renick recommends starting before the age of seven, because by seven, research has found money habits and attitudes have begun to form.

For young children, money lessons should consist of very basic things:

  • Introducing them to the different values of coins and cash.
  • Explaining how money works.
  • Showing them how purchases are made with cash or card.
  • Showing them receipts when appropriate.

If you’re wondering at what age to introduce a child to a specific financial principle, TD Bank offers a wonderful online guide that can help direct you.

Make saving a habit.

Because a lot of money related lessons will include spending, it is equally as important to show children the foundations of saving.

“Saving teaches discipline and delayed gratification,” Renick told Forbes. “Saving teaches goal-setting and planning. Saving stresses being prepared. Saving builds security and independence.”

Simple teaching tools like a piggy bank or savings jar, reinforced by positive statements about savings, can go a long way in building good future habits.

For younger children, teach the value of savings by working towards a short-term goal, such as a new toy they want. As they age, you can begin introducing longer, harder goals. Parents who employ tactics such as matching their child dollar for dollar, or by a certain percentage, are also often successful in encouraging good savings habits.

Show that savings can grow.

Once you’ve instilled them with a sense of savings, one of the rewards can be to watch the way savings can grow. Savings accounts with compounding interest, such as a certificate of deposit, is one such safe way to do this. Likewise, you can calculate and add interest to your children’s savings yourself.

Some banks offer custodial investment accounts for minors. If you’re comfortable taking that kind of step, that is another excellent opportunity for you and your child to take a small amount of money and watch it grow.

Allow children to earn their money.

Children need to have money of their own to learn to use it correctly, but they must also have the opportunity to earn that money.

“Just about everyone values money they earn differently than money they receive,” Renick said.

Basing allowance amounts on household chores, for example, is one way to teach this.

Gamify the experience.

All children have different learning styles. Some will do well talking and working through different concepts with you, and others may thrive if you gamify their learning. There are many board games and apps out there that can help kids learn some of the basic tenets of finance. You can even design your own!

The takeaway here is, while finances are a serious subject, making financial education fun can help children better process this information and apply it properly in the future.

Don’t forget to teach them about debt.

Many young adults find themselves in credit card debt once they’re out on their own, unaware of how they got there or how to manage it. This is an unfortunate situation, and one most are unprepared to face.

If you’re already building good savings habits, that’s half the battle. However, debt repayment and interest accumulation is another important lesson.

One solution can be to emulate a debt situation with your child. Let’s say you loan them $15 for a purchase, but require they pay one dollar a week in interest until the loan is repaid. Each time your child misses a payment, they owe an additional fifty cent penalty.

Showing children that there are consequences to loans, and that maintaining a good payment schedule is best practice can be done from a young age and could save them a lot of hurt later.

In conclusion


Children do not get the education they need about finances. Consequently, many go on to become young adults who make uninformed decisions. This Financial Literacy Month, and always, invest in your children’s financial future by having these conversations and instilling good habits from a young age

Cal Wilson / November 15, 2021

Five tips to minimize card processing expenses

As businesses are racking up debt and supply chain issues are increasing material expenses, cutting costs is more important than ever. With many businesses offering online shopping as an alternative to in-store, you might find your payment processing environment has changed or become more expensive.  

If this sounds like your business, here are five tips for reducing your credit card processing fees, and making the most of your revenue.  

1. Keep an eye on your rates.

Complete monthly audits of your merchant services statements to check for billing errors and avoid rate creep. Processors usually offer seemingly standard contracts, but many contain provisions that allow them to increase your rates. This often comes with the caveat they must notify you first — but those notifications could appear in small print on one of your statements. Be sure to read your statements for notification of rate increases and periodically check your rate to see if it has mysteriously increased. Often, all it takes for them to waive the rate increase is a phone call to object. 

2. Swipe cards and answer questions.

Credit card fees are primarily based on risk. This means you’re better off swiping or inserting a card than entering the number manually. Whenever a number is entered by hand, your processor considers it a higher risk transaction and may charge a higher fee. However, not all organizations have the resources to physically swipe or insert a card. If you’re inputting the card number manually, answer as many of the processor’s questions as possible. Providing information such as the customer’s zip code, debit vs. credit, and the three-digit or four-digit code on the back of the card are all designed to lower the risk of fraud. By entering as much information as possible and lowering the risk, you’ll see reduced transaction fees! 

3. Use an address verification service.

An address verification service (AVS), is a solution that verifies the cardholder’s billing address with the card issuer. It takes your payment services a step further in preventing fraud and has been a big benefit in the world of e-commerce, including limiting chargebacks. 

It works when during the checkout process, the customer enters their address, which is compared to the address on file with the issuing bank. Once the comparison is made, the issuing bank sends an AVS code to the merchant, who can then use the code to authorize or reject the transaction. 

Many major card issuers, including VISA and MasterCard, support AVS. 

4. Make sure PCI Compliance is up-to-date. 

A vendor will incur monthly fees from the Payment Card Industry (PCI) if its compliance questionnaire is not completed annually. These fees will continue to build up indefinitely until compliance forms are completed. The online questionnaire usually takes less than 30 minutes and saves hundreds of dollars every year. By completing the questionnaire, you assure your credit card processor that you are taking the proper steps to keep customer information safe and minimize the risk of fraud. 

5. Hire a professional.

An independent merchant services consultant will find you the lowest rates possible in your area, and can also track your rates going forward to make sure you’re never paying more than you should. For example, Schooley Mitchell looks out for your best interests by providing objective advice to reduce your electronic payment processing spend and improve service. 

Systematic analysis and auditing will: 

  • Uncover and eliminate hidden fees 
  • Identify and recover overcharges and billing errors 
  • Select and apply appropriate rate categories 
  • Ensure government legislation is properly applied 

In conclusion
 

Now is not the time for your business to be spending more than it needs to on credit card processing fees. In reducing costs and growing your bottom line, we hope these tips will be of aid to you.  

Related articles: 

Cal Wilson / November 10, 2021

Customers say the best service comes from small businesses

No one likes bad customer service. One of the most important aspects you should consider as a business owner is how to make sure your employees’ customer service reflects well upon the business. The good news is small businesses are already perceived as the leaders in providing consumers with excellent customer service.  

In fact, according to the recent American Express Global Customer Service Barometer, 81% of customers think small businesses deliver better customer service than their larger counterparts. In this issue of The Pulse, we look at why that perception exists, and what businesses can do to improve their customer service.  

Customer service matters. 

Customer service can make or break a sale. In fact, new data indicates that seven in ten Americans are willing to spend an average of 13% more with companies they believe provide better customer service. This represents an upwards trend, as the same studies from 2010 reported six in ten were willing to spend 9% more. 

On top of this, 78% of respondents to American Express’ survey reported having ended a transaction or not made an intended purchase as a result of a negative customer service experience. Likewise, the majority of respondents – three in five – indicated they would try a new brand in search of better service.  

If you aren’t working on your customer service presentation, you might be missing out on not only sales, but customer retention and referrals, too.  

Despite how highly customer service is valued, many consumers feel they are missing out. Most American consumers feel that companies aren’t paying enough attention to customer service.  

Bad service can cost you potential customers.  

It’s impossible to guarantee how every customer interaction will go. Despite what we may say, the customer isn’t always right. However, businesses should still focus on providing the highest level of service whenever possible, because even one unpleasant experience can be costly.  

Word of mouth is an incredibly powerful marketing tool, and consumers are likely to tell their friends – and the internet – about their experiences with your business. Unfortunately, they are more likely to spread the word if that experience was bad. American Express found that Americans tell an average of nine people about good service experiences, and an average of sixteen about poor ones. 

Why are small businesses excelling in customer service? 

With all the resources larger businesses have access to, why are smaller businesses having more success when it comes to customer service?  

Smaller businesses have the advantage of serving a smaller customer base, who they can get to know more personally in many cases. However, this does not mean that the larger the company, the worse the service. Larger companies can take notes from smaller businesses, as well as make use of the newest technologies to make their service stand out.  

What can businesses of all sizes do to improve their customer service? 

No matter what size your company is, if you’re worried about achieving excellent customer service, here are some strategies to improve quality and bring in more business.  

Keep on top of tech updates. 

If your tech is seamless and user friendly, it reflects well on you. This is important for your in-store equipment, such as Point-of-Sale terminals, as well as your virtual service platforms, such as chatbots and website features. Something as simple as the web hosting provider you use, which determines how quickly your web page loads content, could make an impact.  

Phone experiences are a priority.  

It is critically important that any employee taking phone calls and representing your business be professional, polite, and knowledgeable. Likewise, an up-to-date business phone system will improve the customer service experience by reducing wait times and dropped calls.  

Personalized interactions build relationships.  

If your staff and sales team focus on building personal connections and understanding a customer’s needs, rather than just pushing a sale, it will lead to a better customer service experience overall. Customers appreciate being able to trust personalized recommendations based on the expertise of your employees. If you’re looking for reviews, testimonials, and word-of-mouth marketing, personalized interaction should be a priority.  

Social media is a great chance to showcase your customer service.  

If your social media is a space you use only to promote yourself, you’re missing an excellent chance to interact with customers, and build new connections. The way you respond to comments and the voice you use in your posts crafts the perception visitors have about your brand. Make sure to use this to your advantage.  

Proper employee training goes a long way.  

One of the most frustrating experiences for a customer is when they ask an employee for help, and the employee is either unwilling or lacking the knowledge to help them. Proper training – making sure your employees are knowledgeable and enthusiastic – is a huge part of the overall image of your company’s competency.  

Be open and responsive to customer feedback.  

Whether online or in person, it’s important to take, listen to, and track customer feedback. When possible, responding in a professional rather than defensive way is also prudent.  

Using online tools, such as Hootsuite, or HubSpot, allow you to keep track of multiple accounts in one spot, and can make matters a little less overwhelming when interacting with online feedback.  

In conclusion
 

Customer service is valuable. Not just for your reputation, but for your bottom line too. While smaller businesses seem to have the advantage in this matter, there are a lot of strategies any company can employ to boost their customer service and improve their B2C relations. 

Cal Wilson / November 1, 2021

What is the supply chain and why is it in crisis?  

This year, you may have heard a lot about the global supply chain and its struggle to keep up with consumer demand. While your life and daily routine is undoubtedly impacted by the flow of the supply chain, it might be hard to envision exactly what it is. In this article, we take a look at what constitutes the global supply chain and examine why it’s struggling.  


What is a supply chain? 

Put simply, a supply chain is the network between a company and its suppliers that facilitates producing and distributing a specific product or service. This includes producers, vendors, warehouses, transportation companies, distribution centers, and retailers.  

With so many moving parts, plenty of issues can disrupt a given supply chain. A shortage of raw materials, damage to products, or a natural disaster like a fire or storm could all potentially delay goods from reaching consumers. 

It’s all about supply and demand.  

Almost everything you purchase and use in North America is dependent on the sometimes-well-oiled machine that is the supply chain. Your food, medicine, clothing, and appliances all come from somewhere, and often travel across oceans to get to you.  

What happens to the world economy when there is much more demand than supply? What if there are more people asking for the products than there are cargo containers, ships, packaging, and workers to transport them?  

Recently there’s been massive deceleration in getting products to consumers, coupled with price hikes on those same products. The Bureau of Labor Statistics estimates consumer prices have grown an average of almost five percent since before the pandemic, with some types of goods showing much larger increases. 

Why 2021? 

The course of the pandemic has had a tremendous impact on the global supply chain. While the outbreak of the Coronavirus pandemic understandably threw business off course in 2020, a series of 2021 events has only made matters more complex.  

On top of the container ship lodged in the Suez Canal in the spring that caused a significant backlog of global shipments, the Delta variant of COVID-19 had led to new restrictions and delays in nations worldwide.  

This is also a reflection of one of the risks of our supply chains; they’re offloaded to nations all over the world. In North America, most of the manufactured goods we consume are made in Asia and Latin America, because the mobility and price of cargo shipping made it the economic business choice. However, with container shipping prices increasing well over 100 percent since 2020, the vulnerabilities with this model are clear.  

Cargo shipping did have a failsafe in place before the pandemic: stowing shipments of goods in the bellies of commercial passenger jets already flying between Asia and the United States. However, this too has proven to have its own issues, with far fewer flights scheduled now compared to pre-pandemic.  

Manufacturing capabilities in North America are historically low because of the offshore movement of industries. And when companies who do still produce goods on the continent look to expand their capabilities, they face a shortage of the raw materials needed to do so.  

On top of everything, global labor shortages add extra difficulty to an already struggling process. The workers that the entire process relies on cannot keep up with the demand.  

As The Atlantic explains, “container ships wait offshore, sometimes for months, because ports don’t have the capacity—the dock workers, the warehouse staff, the customs inspectors, the maintenance crews — to unload ships any faster. Truck drivers to distribute those goods were in high demand even before the pandemic, and now there are simply not enough of them to do all the work available.” 

How has the supply chain crisis affected industries worldwide? 

Many businesses have felt the burn of this year’s supply issues. Here are some examples that you may not have been aware of when online shopping or ordering new office supplies: 

  • Some book publishers found themselves having to postpone release dates, as the pulp used to manufacture paper was in short supply, largely due to online shopping’s endless demand for cardboard. 
  • Auto manufacturing has been severely impacted by decreased manufacturing capabilities in countries like Vietnam and Malaysia, where a limited access to vaccines has meant limited manpower in both factories and ports to prevent infections. This has led to a critical shortage in the components fundamental to building modern vehicles. It is estimated that due to the chip shortage, seven million cars were not built.  
  • Rental car companies had to sell off a “sizeable portion” of their fleets during the worst of 2020, and now find themselves unable to replace those lost vehicles, causing a significant shortage in comparison to customer demand.  
  • Pharmaceuticals are in short supply, as many drugs are either produced in China, or rely on raw ingredients from across the world.  
  • Food packaging and processing workers were among the hardest communities hit by the pandemic, and now those businesses find themselves very understaffed. This inevitably impacts availability from grocers as well.  

What does this mean for business owners? 

Depending on your industry, you might find yourself short on staff and short on products. You may be forced to make the decision between paying more for quicker delivery or embracing shipping delays for more affordable costs. 

Businesses who were already hit hard by closures during pandemic-related lockdowns might find a new set of challenges heading into the Christmas shopping season.  

While there are certainly more hardships ahead, now is not the time to cut staff or sacrifice quality. As you adjust to these new circumstances, finding other ways to save money – such as expense reduction on electronic payment fees, utilities, and more – can allow your business to continue to operate and protect your employees.  

Related articles: 

 

Cal Wilson / October 27, 2021

Tips for effective salary negotiation.

Did you know, only 37% of people always negotiate their salaries?

When it comes to salary, advocating for yourself can be hard. Not only can talking about money be awkward, but putting yourself in a vulnerable position by asking for more is never comfortable, even when you know it’s what you deserve.

In this issue of the Pulse, we explore some salary negotiation strategies that may help you confidently ask for what you deserve, whether you’re new to a position or seeking a raise.

Be prepared.

If you’re going to negotiate for a better salary, you have to be prepared and honest about why you deserve it. An important piece of this is knowing the value you bring to a given role, industry, and geographic area. You should also be prepared with a figure. If you walk into a negotiation without a number in mind, you’re asking someone else to set that price.

Likewise, organize your thoughts and points. Make notes if it helps. Treat this negotiation with the care and diligence you would treat another work assignment.

If you’re asking for a raise, you also want to be honest with yourself and evaluate if you deserve one. Have you been at your job for a year? Have you taken on new responsibilities or additional projects? Have you been exceeding expectations? If you can confidently answer yes, you’re in a better position to ask for a salary increase.

Pick a number towards the top of your range.

When you research the salary range you think best suits the value you bring the company, you’re going to want to choose a number towards the higher end to use as your asking point. Why? First of all, if you’ve done your research, you should assume that this is an appropriate ask. On top of that, your employer will likely negotiate down, so you’re going to want a reasonable amount of wiggle room.

Columbia Business School also recommends asking for a specific number, rather than rounding it. For example, ask for $64,750 as opposed to $65,000. Columbia found employees who use a more precise number are more likely to get a final offer closer to their initial ask, because the employer will assume they’ve done more extensive research to reach that specific number.

When speaking with a recruiter, keep your number to yourself.

If you’ve been talking to a recruiter, they will likely ask about your salary expectations. It’s better to keep that number to yourself.

Instead of offering your expectations, ask the recruiter for the range they’re budgeted to give for the role. If you’re unsure of how to phrase this, Niya Dragova, co-founder of Candor, suggests asking like this:

“Can you tell me the salary band for this level? Happy to let you know if it’s within my range, and we can discuss specific numbers later when I’ve met the team.”

Sometimes, recruiters will put the pressure on you to reveal what number they’re looking for. They might even say they’ll be able to make it happen for you. Don’t give into this pressure. Especially if they’re working for a larger corporation – think, over 5,000 employees – the recruiter may have no say in your salary at all. They will likely have to bring your number to a committee, and providing your number too early could hurt your chances of getting more on your offer later.

During interviews, gather intel.

While answering the interviewer’s questions, be prepared with some questions of your own. You want these questions to give you insight into what they are looking for from you as an employee, and how you can bring value.

Consider the following questions, or a version of them that is applicable for your circumstances:

  • What’s the biggest priority for the team right now?
  • Why is the role open?
  • What do you think is the biggest challenge for someone stepping into this work?

If you know you can bring additional value based on what they’re looking for regarding these questions, this good be good negotiating leverage later.

Don’t be afraid of ‘no.’

A salary negotiation starts with the word ‘no.’ While it would be nice if you were given the first number you asked for, expect to negotiate and bargain a bit. A ‘no’ on your first ask is not necessarily a sign of your worth, but rather a sign of the employer’s ability and budget.

When faced with a no, don’t shut down. Keep the conversation going and find a number that will work for both of you.

Consider the organization.

If you’re looking at a big corporation with seemingly endless funds, it’s easy to want to negotiate a bit harder for your initial ask. However, when dealing with a smaller company, startup, or nonprofit, it’s very likely they may not have the budget to negotiate much higher than their offer.

In that case, you have to consider the pros and cons of settling for less than you wanted, and also the value that position can potentially bring you – and whether there is room to grow.

In conclusion


Not enough people negotiate for their initial salary. It can be hard to ask for more money, even after years at a company. If you are prepared, strategic, and fair, it is worth taking a shot and advocating for yourself.

Cal Wilson / October 18, 2021

Gas prices may be climbing, but gas stations aren’t seeing the profits

Gas prices are currently at a six-year high. It might be easy to feel frustrated with gas stations when you see the prices steadily creeping upwards. Especially if you’re managing a fleet of work vehicles on top of your own personal transportation. You may be surprised to learn that despite rising prices, gas station owners rarely turn a profit on gas alone.  

We consume a lot of gas.  

In the past two decades, gas consumption has increased significantly. In fact, the total number of miles driven per year has gone up approximately 20% since 1990 in the United States. The average American household now spends $250 on gas per month. And, despite the lockdowns in 2020, gas stations across the country still sold 123 billion gallons of fuel.  

Gas station owners hardly see that money. 

The increase in gas prices and consumption has not meant that station owners see an increased profit. In fact, many of them lose money on their gas overall. With small margins and intense competition, many gas stations rely on secondary revenue streams to stay afloat.  

Many gas stations are operated by franchisees or individual operators, 57% of whom only own a single station.  Meaning, for most gas station owners, their income is reliant on the success of an individual location. And, with gas stations averaging a 1.4% net margin on their fuel – far lower than the average across all industries of 7.7% – that success can be difficult to generate.   

What goes into the price of gas?  

The gas we use to power our traditional Internal Combustion Engine (ICE) vehicles goes on quite a journey from the ground to your car. After being sourced, crude oil is sent to refineries to be processed into gasoline. Then, it is funneled into storage containers and transported to gas stations.  

When you purchase gas, the bill is composed of the expenses of these different stages of gas production and transportation: 

  • 51% of the bill goes to the price of extracting the crude oil 
  • 17% to refining the crude oil into gasoline 
  • 17%, on average, goes to taxes 
  • 8% for the price of transportation 
  • 7% to markup 

Based on a September national average in the United States, a gallon of gas costs roughly $3.18. The markup, then, would bring in 20 cents of revenue. Put that 20 cents through labor and other operational expenses, such as credit card processing fees and utilities, the average profit per gallon would be between five to seven cents.  

Depending on a station’s traffic, this profit margin might not nearly be enough to keep it running. It can be difficult for operators to raise the prices on their own accord, too. Customers often choose where to fill up based on price alone, so there is an incentive to sell more by keeping the price down.  

Contrary to popular belief, gas station owners often struggle when prices rise.  

Gas station owners are affected as much as anyone else when the cost of gasoline rises. They are faced with the difficult decision of choosing to keep prices steady, at a loss to themselves, to maintain customers. Competition over who can provide the lowest price and attract more customers can also put gas profits at significant risk.  

So, how do stations stay open?  

Well, the truth is, not all of them have. In 1995, there were 195,000 gas stations across the United States. As of 2020, there were 115,000. Despite population and gas consumption increasing, gas stations across the country have decreased. 

For the stations open today, many make a profit off of secondary revenue streams. In the United States, 80% of all gas stations have a convenience store on site. Convenience store goods, such as chips, lotto tickets, and beverages, account for an average of 30% of a station’s revenue, but 70% of the profit.  

While 44% of customers still choose to go inside gas stations to pay, the advent of pay-at-the-pump chip readers is threatening this business model.  

What can gas stations owners do? 

While this incredibly competitive, challenging industry can be hard to make more profitable, there are ways to reduce costs without losing staff.  

If the 7% that revenue station owners make off gas also goes towards expenses like card processing, utilities, and other operating costs, then lowering these costs is a way to increase profits. Working with a bookkeeper or cost reduction consultant to manage these expenses can help you do just that.  

Related articles:  

 

Cal Wilson / October 13, 2021

How to cope with colleagues quitting.

2021 has seen a record number of employees across North America leave their jobs. While many businesses are understaffed and desperately searching for qualified workers, those left behind might have trouble adjusting to the loss of their colleagues.  

In this issue of the Pulse, we look at advice from Harvard Business Review and executive business coach Nihar Chhaya about what to do when your colleagues are leaving, but you plan to stay.  

A ‘turnover tsunami.’  

Chhaya describes the economy as experiencing a ‘turnover tsunami’ – over 40% of the global workforce has reported that they have left or are planning to leave their jobs in 2021.  

If you’re among the 60% planning to stay in your current situation, it may be inevitable that you experience some changes in workplace culture as well as the added stress of a shifting workload. Chhaya, whose clients are experiencing culture shock from all of the turnover, recommends a few strategies to cope with this transitional period.  

You may feel pushed out.  

One of the issues workers are facing is a dichotomy between tenured and new employees. For longtime employees, there is the insecurity of being perceived as less innovative, strategic, or forward-thinking as newer hires. Likewise, some employees may feel like they have been quickly given more responsibility or seniority than they expected.  

Chhaya recommends giving yourself the space to process the changes in your workplace. If you’re on the fence about staying or leaving, you may be going through something called “affective forecasting.” 

Chhaya explains that when “you see others leaving your company, you may feel an urge to start looking for new opportunities as well. Their departures can trigger a feeling of social exclusion as you feel left behind.” 

This exclusion, paired with the feeling of being out of place in your new situation, could lead to a very overwhelming time in your career.  

Reflect on your place in the company culture.  

If this sounds like something you’re struggling with, Chhaya recommends reflecting on yourself, your workplace, and your career goals.  

“Start by reflecting alone, or with the help of a trusted partner, on your intrinsic values and goals,” he recommends.  

“Then do an honest inventory of your current capabilities and reputation, as well as where you still need to develop, to achieve your ideal work life. At the same time, explore whether your values and goals are aligned with what your employer defines for success in your role. You may find that you’re motivated by a different set of criteria than your company, or that with a bit more adaptability you could find a way to be fulfilled by staying.” 

Don’t act with haste. Figure out what will be the best for you, not what was the right choice for your other colleagues. 

Be involved with new employee onboarding.  

When appropriate, participate in onboarding activities and get to know new staff members in a reciprocal way. Be helpful and a mentor when needed, but also be open to learning their ways of doing things.  

Chhaya says, “The best strategy is to simultaneously teach and learn. Share your experiences as a wise mentor but be willing to invite their input with a beginner’s mind. You will not only stay relevant as things change, but your openness will help you cultivate greater influence with your colleagues.” 

If there’s a company onboarding playbook to follow for new employees, it’s never a bad idea to take another look to see if there are steps in it you can take to help adjust to the new workplace dynamic.  

In conclusion
 

The ‘turnover tsunami’ of 2021 may have thrown your workplace culture and career plan off track, but it doesn’t have to be a total loss. Even when others are leaving, if you make the choice to stay, it could be a positive thing for you and your company.  

Nihar Chhaya is an executive coach to senior leaders at global companies, including American Airlines, Coca-Cola, GE, and Dell. You can read the rest of his advice in the original article on Harvard Business Review here.

Cal Wilson / October 4, 2021

North American Small Business Debt is Soaring

Across Canada and the United States, small businesses are hurting from the financial ramifications of COVID-19. Even while businesses open back up, many are still struggling.  

Canada’s small business debt hits $139 billion.  

As of September, The Canadian Federation of Independent Businesses (CFIB) estimates that small businesses owe a collective $139 billion. Furthermore, the average business owes close to $177,000 due to restrictions and closures. In the hospitality and tourism industry, that number is closer to $333,174.  

With the economy not yet back to pre-pandemic conditions, it seems unlikely that many businesses will be able to pay down their debts.  

The CFIB reports that: 

  • 76% of businesses believe it will take them more than a year to pay off their debt.  
  • For hospitality and tourism companies, the number jumps to 86%.  
  • A quarter report fearing they will never manage to pay off the debt.  

How are Canadian business owners staying afloat? 

The rise in debt has also revealed what methods owners are using to continue financing their small businesses through these difficult times. The CFIB found: 

  • Almost one-third of business owners say they use credit cards to make ends meet.  
  • Almost one-third have been using their personal savings.  
  • 78% are making use of government assistance programs, which cover roughly 31% of the shortfall in expenses.  

Small businesses in the U.S are facing similar problems.  

American small businesses are not exempt from the debt problems that plague Canadian business owners. The Federal Reserve reported 95% of businesses were affected by the pandemic, and 91% sought emergency assistance funding.  

Small business lending is a multi-trillion dollar industry in the United States. Likewise, in 2020, the Paycheck Protection Program (PPP) loaned out over $800 billion to businesses. In March, a $1.9 trillion COVID-19 stimulus package was released to businesses across the country.  

Although the data is not as clear about small business lending in the United States, all evidence suggests that American small businesses are in the same trouble as Canadian ones. For businesses in states like Louisiana or Mississippi, the additional blow of Hurricane Ida at the end of August has only exacerbated the issue, as property damage and power outages have caused significant downtime.  

American businesses are struggling to employ at full capacity.  

A record level of vacant positions across the United States is also contributing to rising business debt. Bloomberg reported that as of August, 50% of small businesses had job openings they could not fill. The numbers have not been this high since 1986.  

To combat this unemployment crisis, 41% of small businesses have raised compensation to attract workers. Likewise, 32% intend to add to payroll in the next few months.  

Understaffed, it may be hard for small businesses to perform at a level where they can begin paying down their debt.  

What can small business owners do?  

If you’re one of the small businesses experiencing a surge in debt due to the pandemic, there are steps you can take to improve your financial situation, even in a small way.  

Most businesses that fail do so because of cash flow management issues. If you’re struggling with cash flow management, here are some things to keep in mind: 

  • Don’t jump to raising prices – while underpricing goods means you won’t have enough incoming cash, overpricing may mean you won’t make enough sales and risk turning away customers. You want to find a sweet spot where you’ll remain competitive without undervaluing yourself. 
  • Offer time-based incentives – if you have lots of cash tied up in unpaid invoices, it can be hard to stay on top of your expenses. One strategy to increase your liquidity is encouraging clients and customers to pay on time via time-based incentives. 
  • Choose your credit wisely – using credit isn’t inherently bad, especially when done with planning and caution. However, it is important to do your research and find a line of credit that makes sense for your business. Traditional banking options may not be the best choice. 
  • Implement saving techniques – there are many saving strategies businesses can utilize to manage their cash. Among them, opening a separate business checking account, using accounting software, and investigating each expense to see if it has a positive return on investment (ROI) stand out as quick, effective options.  

It is also never a bad idea to work with external professionals, such as bookkeepers and cost reduction specialists, who can help you save money while growing your business.  

In conclusion
 

The pandemic has launched an unprecedented debt and employment crisis for small businesses across Canada and the United States. While recovery is projected to be years away, there are steps business owners and CFOs can take to give themselves a financial boon.  

Related articles: 

Cal Wilson / September 20, 2021

Waste across industries, No. 5: How to save your business money while recycling

 

Does your business recycle? Although this has been common practice in residential homes since the Great Depression, many businesses do not have the knowledge or incentive to properly recycle some of the waste they generate. So, what is the incentive? Can recycling save you money?

Part five of Schooley Mitchell’s five-part series.

Over the past few months, we have looked at the cost of waste across several industries. Business waste disposal comes with a hefty cost to your bottom line, as well as the environment. In the final issue of this series, we look at one of the biggest strategies to reduce waste: recycling.

Can recycling save your business money?

The best way to reduce waste disposal expenses is to simply reduce waste. For many businesses, reducing paper and purchasing reusable materials can eliminate a significant source of waste, regardless of whether that waste is being recycled or headed to a landfill.

In areas where you cannot eliminate waste, commercial recycling is a viable alternative. Recycling reduces transfer and landfill costs associated with waste disposal. Separating the relevant materials into recycling bins also reduces the frequency of garbage collections.

According to sanitation solutions provider Clean River, companies can see annual savings of up to $4,000 by just making the transition to recycling their cardboard and paper waste.

Likewise, depending on where in North America you are located and what kind of organization you are, there may be grants to help you establish a recycling program, making the transition even more cost effective.

Some recyclables can be sold.

Contractors, construction companies, manufacturers, and other businesses that generate recyclables like scrap metal can sell these materials and earn back some of the money that would have otherwise gone to waste generation.

So how do you start a commercial recycling program?

If you’re looking to save money on waste disposal by starting a commercial recycling program, here are some tips for planning internally:

  • Assess your office’s recycling needs – how many work spaces or lunch rooms will need recycling bins?
  • Assess your materials – are you recycling mainly paper and cardboard, or will you also need to account for plastic bottles and containers?
  • Will you want to include an option for organic waste?
  • Plan for one recycling bin per 50-75 people, depending on staff density. High traffic areas may need more.
  • Plan for an outdoor bin if you have outdoor spaces where staff or visitors congregate.
  • What does your current waste management schedule look like? If you have less frequent bin emptying, you may need more bins than if they’re emptied daily.

You will also want to look externally to your waste hauler. Some haulers aren’t set up to collect all waste streams, but others won’t charge for recycling, or may even give you a rebate. Explore your options, and if necessary, work with a third-party expert who can help find you the best solutions.

What about composting?

If your workplace generates a substantial amount of organic waste, it may also be worth looking into a commercial/industrial composting solution. Commercial or industrial composters often collect compostable materials directly from your business and then use the latest technologies to put this to good use.

In conclusion, don’t let waste expenses eat into your profits.

Over the past five issues, we have investigated various sources and solutions of commercial waste, as well as the heavy cost associated with it. While waste costs can be overwhelming, there are ways to reduce and manage the impact they have on your bottom line.

If you think you’re spending more than you need to, contact an expert who will help you optimize your waste disposal process and bill.

Related articles:

Cal Wilson / September 15, 2021

Business leaders can learn from school teachers, too.

Most of us can remember one or more great teachers we had, whose kind guidance positively impacted our life’s trajectory. Learning from dedicated educators is not limited to students, though. Business leaders can benefit greatly by employing a teacher’s viewpoint and expertise into their decision-making process.

In this issue of The Pulse, we examine the ways in which an educator’s experience could help expand a business leader’s skillset.

Teachers are trained in knowledge sharing.

Teachers are specifically trained in taking their existing knowledge, paired with new information, and passing it on to their pupils. They are trained in explaining, demonstrating, and leading with the goal of building skills and confidence in others.

This is a skillset business leaders, whether executive or middle management, could greatly benefit from having on their toolbelt. The higher up and more skilled you become in your company, the more you will need to delegate tasks and pass on knowledge to staff below you. Even if you’re the top expert in your field, teaching can still be challenging, and not everyone is a natural.

Looking to classroom educators and college or university professors for guidance is one way you could strengthen your skills and receive excellent insight.

Teachers must adapt to different learning styles.

No two employees – or students – are the same. We all learn and process information differently. If you’re ever struggling with an underperforming employee, or in training a new program or ability, it might be worth asking a teacher for tips.

What is the best way to help a hands-on learner through a written or auditory training activity? How do you customize training materials for an individual to a larger group? Teachers tackle these challenges every day, and often with fewer resources than many businesses have access to.

Teachers create engaging content.

Especially for those that teach younger children, teachers must know how to make digesting information interesting.

Educational success business School Growth says “leaders would be wise to tap into the expertise of educators in order to utilize modern approaches to curriculum design to build engagement internally (with employees, managers, etc.) and externally (with clients and communities). Understanding how people learn and how to craft instructional experiences that strengthen relationships offers a unique marketing advantage.”

Teachers have an unwavering work ethic.

The best educators are the ones who are chronically optimistic about their students’ potential. They believe in and inspire their pupils to perform at their best. Teachers demonstrate this by:

  • Setting big, but possible, goals.
  • Investing time and emotional energy in their students.
  • Planning purposefully and executing that plan to benefit every student in the classroom.
  • Taking feedback and improving their skills.
  • Working relentlessly despite obstacles.
  • Having compassion and empathy for their pupils.

These are all things you, as a business leader, can be doing for your employees.

In conclusion


The ability to teach and learn make you and your business highly competitive. There are no better role models for this than the educators who may have inspired you or your children to believe in yourself, work hard, and reach for your goals. If you have an educator in your life, it may be worth asking them for advice on how to improve your own leadership in the workplace.