It would be an understatement to say that Covid-19 has been hitting businesses hard—especially small businesses and mom-and-pop shops. Thankfully, if your business applied for a PPP loan before March 31st you may have already begun to receive some of the benefits from the $285 billion Covid relief package that has been approved by legislation—or will most likely see these benefits of your loan at some point in the near future. However, did you know that there are other steps that you can take to maximize the personal benefits of your mom-and-pop shop and even further extend its longevity? Our top business tips below will show you how.
Tip 1: Establish a Retirement Plan
As the owner of a small business, it may be hard to think about the future right now when just making it through every day is hectic enough, but it’s never too late to set up a retirement plan—especially when Jefferson County resides in one of the best states for retirement. There are many different retirement plans to choose from as well. You can apply for an “owner-only” 401K, a SIMPLE IRA, or an SEP-IRA. The application process for each of these is fairly simple, and they offer some potential tax advantages and a source of retirement income for you in the future. A retirement plan such as one of these will ensure that even after you have decided to hang up your apron, you will still be profiting from your years of hard work as a business owner and can even preserve the legacy of your shop. Be sure to consult a financial professional when getting ready to pick out the right plan for your needs. At the Jefferson County Chamber of Commerce, we have two wonderful financial advisors who are proud members of our esteemed organization. They would be more than happy to help you find the perfect retirement plan for you and your spouse. You can find their contact information here on our website.
Tip 2: Coordinate Your Business Assets with Your Investment Portfolio
Many mom-and-pop shop owners have a great deal of personal wealth wrapped up into their business, and many of these business owners have come to realize after this chaotic year that this can be a risky move. If there’s anything for business owners to learn from 2020, it’s the importance of weighing in risk factors when deciding on how much to put into a retirement plan or in other investment accounts. The level of risk that you choose to take as an owner of a small business such as a mom-and-pop shop largely depends on your investment mix. In an ideal world, this “mix” should ensure that the level of risk you take will be provided with an appropriate balance to what you have personally invested in your business. As you can see, avoiding risk altogether isn’t necessarily the solution to mitigating the repercussions of investing your personal wealth in your business, but the solution is rather understanding how risk factors into your investments and your business profits as a whole and knowing how to effectively utilize them.
Tip 3: Develop a Transition Strategy
When it’s time to put your retirement plan into action, how will you make your transition from business owner to this next stage of your life? Will you sell your company? Will you pass it along to a new generation of moms and pops? Whatever route you decide to take, it is important to have a plan for how you want to handle this transition well before you enact it—whether that means selling your company or giving it new ownership. Your team of financial, legal, and tax advisors can also work with you here to help you decide what your best course of action should be when developing your transition strategy for your business; and when you’ve gotten all your paperwork finally squared away, look into finding a new home for this next exciting chapter of your life right here in Jefferson County. Visit to find out more about our home here in the Lakeside of the Smokies.
Bonus: Become a Member of the Chamber of Commerce
Running a mom-and-pop shop may sound quaint and carefree, but at the Jefferson County Chamber of Commerce we know that running a business of any size can be stressful no matter what size your company might be. Get the help you need to meet these challenges by becoming a member of our chamber of commerce. Not only can we provide you with more helpful business tips like the ones we just shared in this article, but we can also connect you with the right people to help you execute these ideas. Having a strong network full of reliable resources that you can use to help your business grow is one of the best investments you can make as a small business owner, and not to mention that this investment comes with no risk whatsoever. If you’re ready to find out how you can keep growing your mom-and-pop shop, visit our website today and find out how to join to get started on your application to become a member of the Jefferson County Chamber of Commerce.