Small businesses tend to have certain traits that may offer an advantage over large companies. For example, these traits may include the flexibility to try out new ideas, staff up or down quickly, and adapt nimbly to a changing market. There may also be the indomitable spirit, determination, confidence and optimism that is inherent among entrepreneurs who believe they can make a go of it. Now, in the midst of one of the most challenging times in U.S. modern history, that temperament is being put to the test.
Let’s face it — the coronavirus has taken both lives and businesses, and the numbers aren’t good. According to recent surveys, a full recovery in the small-business market could take anywhere from six months to five years or longer.1
However, the news isn’t all bad. A survey conducted last summer by MetLife & the U.S. Chamber of Commerce found that 86% of small businesses responded that they had either partially (34%) or fully (52%) reopened since the initial shutdown. The key for many is that they took proactive steps to pivot their business model. These changes included:
- Launching an e-commerce site or increasing their use of e-commerce
- Changing their point-of-sale (POS) technology and offering more digital payment options
- Offering curbside pickup and/or delivery
The survey also found that despite the uncertain future, 75% of small businesses remain optimistic.2
Optimism can carry us far. If there is one trait that can help people get through tough times, it’s the hope that things will get better. One path toward renewed optimism is being better prepared for crisis situations. If you’d like some assistance in assessing your strategy and how insurance products may fit into that strategy, we’re here to help.
According to Harvard Business Review, some long-established business models have effectively pivoted to offerings that cater to today’s stay-at-home consumers while increasing profit margins. For example, some restaurants have narrowed their menus to a fewer number of meals that they can produce cost-effectively in volume, offering them at a flat rate for a set number of meals per week or per month. Some farmers, with the loss of commercial revenues, have begun selling direct to consumers. Not only do these types of pivots help generate sustainable profitability during the economic downturn, but some of these new channels of business may remain popular and profitable enough to continue post-pandemic.3
These pivots may point to a key indicator of success during an economic decline. Research shows that businesses with a track record of survival focus on reducing costs to reduce prices rather than downgrade the quality of their goods or services.4
Fresno Retirement Consultant Takeaways
As your Fresno retirement plan consultant we felt the following ideas were top notch: There may also be the indomitable spirit, determination, confidence and optimism that is inherent among entrepreneurs who believe they can make a go of it. A survey conducted last summer by MetLife & the U.S. Chamber of Commerce found that 86% of small businesses responded that they had either partially (34%) or fully (52%) reopened since the initial shutdown. Research shows that businesses with a track record of survival focus on reducing costs to reduce prices rather than downgrade the quality of their goods or services.4
Diversifying your retirement assets among a variety of vehicles and alternatives—both insurance and investment oriented, depending on what is appropriate for your situation—may offer you a better chance of meeting your retirement income goals throughout your lifespan. We help our clients with problems sometimes associated with retirement such as stopping spend down and avoiding probate. In doing so we leverage strategic wealth management as well as retirement annuity designed to help accomplish those goals.
When searching for Fresno financial advisors, look no further than Soutas Financial & Insurance Solutions Inc. your Fresno financial planning consultant is committed to helping take the complexity out of retirement planning. By using a variety of insurance and investment strategies that focus on Asset Protection, Long-Term Care Strategies, Legacy Planning, Tax Efficient Strategies IRA, 401(k) & 403(b) Rollovers Life Insurance Annuities Medicare, we can help you develop an overall retirement income strategy specific to you and your family. We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial your top financial advisors in Fresno, Ca., to get your retirement plans on track for success!
Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Soutas Financial & Insurance Solutions, Inc. are not affiliated companies. California Insurance License # OK48173
Soutas Financial & Insurance Solutions Inc.
333 W. Shaw Avenue Suite 106
Fresno, CA 93704
Content prepared by Kara Stefan Communications.
1 Rieva Lesonsky. U.S. Chamber of Commerce/CO—. Aug. 11, 2020. “4 Smart Ways to Pivot Your Business Model Now.” https://www.uschamber.com/co/start/strategy/pivoting-your-business-to-survive-pandemic. Accessed Nov. 30, 2020.
2 Rieva Lesonsky. U.S. Chamber of Commerce/CO—. Sept. 1, 2020. “Pivoting Helps Small Businesses Thrive During COVID-19 Pandemic.” https://www.uschamber.com/co/start/strategy/metlife-us-chamber-small-business-index-covid-19. Accessed Nov. 30, 2020.
3 Mauro F. Guillén. Harvard Business Review. July 7, 2020. “How Businesses Have Successfully Pivoted During the Pandemic.” https://hbr.org/2020/07/how-businesses-have-successfully-pivoted-during-the-pandemic. Accessed Nov. 30, 2020.
4 Michael Greiner and Scott Julian. Harvard Business Review. July 13, 2020. “Avoid Making This Strategic Mistake in a Recession.” https://hbr.org/2020/07/avoid-making-this-strategic-mistake-in-a-recession?ab=at_articlepage_whattoreadnext. Accessed Nov. 30, 2020.
We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.
The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.
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