Business Education

What are the Pros and Cons of Giving Small Business Employees Holiday Bonuses

Small business employee holiday bonuses have their advantages and disadvantages. As with most kinds of incentives, it creates different scenarios that small business owners should be aware of before introducing them. As any entrepreneur knows, there are upsides and downsides to just about everything. So, let’s take a quick look at the most common pros and cons of giving small business employee holiday bonuses.

Small Business Employee Holiday Bonus Cons

We’ll start with the disadvantages. First, it creates unrealistic expectations. For instance, if you have a stellar year and profits are high, it’s only natural to want to reward your people. But this sets up an expectation for the following year, even if it’s a very poor one. Also, bonuses sometimes fosters unhealthy competition. In other words, it will cause some employees to up their game substantially, even at the expense of their teammates. Also, one person might exceed expectations so much, his or her performance could cost you a hefty tax bill.

Your small business can’t operate successfully without the help of your employees, which is why it’s important to maintain a happy, focused workforce. Of course, giving your hardworking employees a bonus or raise can decrease turnover and boost staff morale, but these monetary rewards can easily take a toll on your business’s bottom line. —Intuit QuickBooks

Speaking of taxes, giving out bonuses creates new tax implications for your small business. Of course, that’s not your employees’ problem but it will certainly cause you to think twice. Lastly, another downside of bonuses –specifically performance-based models — is the fact it might marginalize and/or demoralize those who aren’t eligible or simply do not perform as well as top producers.

Small Business Employee Holiday Bonus Pros

Now, let’s look at the benefits of giving small business employees holiday bonuses.

Bonuses incentivize employees. On the flip side, overall employee performance will notably increase — probably enough to substantially benefit the company’s bottom line. Of course, that’s a terrific win-win scenario and one you’ll definitely strive to repeat as many times as possible.
Bonuses help retain key staff. Bonuses are also a great retention tool, particularly for performance-based models. It helps to give employees more control over their earnings and hence, take ownership in the company. Plus, that extra earning power reiterates the fundamental attractiveness of the company itself.
Bonuses instill responsibility. Bonuses are a powerful motivator, so much, individuals will likely take on more responsibility, even to the point of tackling tasks not in their job descriptions. For instance, a salesperson who personally picks up and delivers one or more orders when other team members are struggling to keep up or falling behind.

What other pros and cons about giving employee bonuses would you add? Please share your thoughts and experiences by commenting!

Interested in learning more about business? Then just visit Waters Business Consulting Group.

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Steps to Starting a Successful Side Business

May 16, 2017 No Comments

There’s nothing wrong with supplementing your income, or, to start on a journey to pursue a dream. A side business is an avenue for both, but, like most full-time employees, you’re wondering just how to get started. It might surprise you, but it’s not just about the logistics. While the nuts-and-bolts are certainly vital, you’ll also have to deal with other things. In other words, it’s not just about carving out the time, being able to deliver on your promises, but also, finding personal fulfillment. Too many people start side businesses, burn the candle from both ends, and wind-up burning out. What you do need to understand is that, especially early on, the right mindset is key to future success. You’ll probably start out on fire, ready to tackle whatever comes your way. Inevitably, there will be problems, whether big obstacles or temporary setbacks. If you keep in a positive frame of mind and learn from mistakes, you’ll go much further. You’ll also need a workable game plan that rewards each achievement step you reach. Steps to Starting a Successful Side Business First, you must consider a few things, such as: is this a needed service or product? Can I deliver on a tight schedule? What competition will I face? Is there room for scaling-up? Of course, the biggest question will be can the time invested turn a profit and if not immediately, when will it realistically do so? People’s initial motivation is often money – they want to save more, pay off debt or simply afford a better lifestyle for themselves and their families. But then, it often morphs into something deeper, as people realize that their side businesses allow for a creative expression and satisfaction that can be hard to find in their full-time jobs. —Entrepreneur.com Next, understand and accept that you’ll have two demanding jobs. That’s going to bring some stress, it’s just unavoidable, and, it will also zap your energy. The trick is to set your sights on your goals and be convinced they are within reach, it’s okay if it takes time to realize. Don’t make the mistake of rushing because you’ll likely sabotage yourself and be willing to give it a solid test run, knowing that it might not work out. If you’re willing to make the commitment, get past the planning and taking action, you can make it work. Getting down to the nitty-gritty, the following steps are what you’ll need to do in order to start a successful side business: Reframe your way of thinking. Don’t let your day job be an obstacle, instead, think about all the positive things it provides. First, it does put a constraint on you, but that’s a good thing because it spurs creativity. In addition, look at your full time position as a funding source and a place to sharpen your skills. Determine workable, key actions. You’ll need a written list of workable, key actions — things that will move your idea forward, but don’t just keep ruminating. Every step should move you in the right direction with purpose. Restructure your schedule. This probably sounds too obvious, but too many people who try to start a side business, fall prey into thinking their schedules are already set. Dedicate routine times to work your side gig and be willing to make adjustments as necessary. Network whenever you can. If circumstances allow it, you can network at your full-time position, letting co-workers know what you’re offering. If not, there are plenty of other venues: your child’s school, your church, your gym, places you volunteer and visit often. Entrepreneurs are one of America’s greatest assets! Whether you are starting a business part time or full time, now it’s your turn to be an All American Entrepreneur while achieving your goals and growing our economy one great business idea at a time! [shareaholic app=”follow_buttons” id=”26833294″]

Not Conducting Exit Interviews? Here’s What You’re Missing

August 6, 2021 No Comments

An exit interview is conducted for two principal purposes. The first is to learn about the soon-to-be former employee’s experiences at the company. The second is to determine the reason he or she is leaving. Those are pretty straightforward and can provide valuable insight into how a business operates from an employee’s point of view. This is why large corporations establish these separation procedures. However, even small businesses can take advantage of what exit interviews have to offer. Downsides to Holding Exit Interviews Now, there are of course pros and cons to conducting exit interviews. The first and perhaps most obvious is that a future former employee May be unwilling and/or apprehensive about the possibility of burning bridges. In other words, you might not get the unfettered truth to every answer. Plus, it’s possible the person will go out of his or her way not to offer honest answers. Then, there’s also the possibility he or she will hold back information and that of course can undermine the entire exercise. Exit interviews are conducted to generate feedback from employees with the goal to lower employee turnover rate, raise employee retention, and improves aspects of the organization as a whole. After conducting the interviews and reviewing the data, organizations will use the employees’ suggestions to create a better organization for which their employees want to work and succeed. —Work Institute.com What’s more, if you do get the whole truth, and nothing but the truth, your action on the other side can be very detrimental. After all, the departing employee might provide valuable insight into correcting certain issues or problems within his or her position that could benefit his or her successor and/or, the business as a whole. Failing to apply solutions could result in remaining employees knowing that nothing was done, and that can be quite damaging to morale. 3 Biggest Exit Interview Benefits Obviously, companies conduct interviews as part of their business practices for good reason. And, as mentioned above, even small businesses can reap the same benefits. Here are the biggest advantages of conducting exit interviews: Gain inside perspective. Managers, administrators, and owners are routinely surprised by what they learn through exit interviews. Because they are in charge at the top, they believe they have some sort of omniscient knowledge, but that’s certainly not always true. In fact, this is why third-party HR services offer exit interviews since they understand through experience that the upper echelons of companies aren’t always aware of everything that’s actually going on. Discover unknown issues. Along the same line, it’s not only learning the intricate dynamics or the minutiae of a certain position, but also the problems and issues that affect said position being vacated. It’s not at all unusual for the exit interviewee to reveal certain points of friction or areas of frustration with the position they are leaving. This too is very valuable information and gives the company and opportunity to make key changes. Increase employee retention. One of the main reasons companies conduct exit interviews is to gain knowledge of the benefits listed above in order to enact reforms or policy initiatives that serve the employees better. By doing so, the businesses are able to improve on their operational practices and that can also benefit other areas, such as employee cohesion, morale, and productivity. What other advantages do exit interviews offer? Please take a brief moment to leave a comment and share your thoughts and experiences so others can benefit from your input. Interested in learning more about business? Then just visit Waters Business Consulting Group.

The Back-to-School Startups Poised to Cash In When the Bell Rings

August 6, 2026 No Comments

With every new school year comes new business opportunities. While these windows are narrow, they nonetheless offer particularly profitable prospects, especially to entrepreneurs willing to move quickly and with purpose. However, it’s not necessarily easy to come up with good ideas, products and services that have real demand from local families. So, let’s take a look at some of the best startups to offer solid solutions for common problems as the school year begins. Practical Startup Ideas for the Busy School Year Launch The first day of school is pure chaos for parents—and pure opportunity for entrepreneurs who see past the backpacks and lunchboxes. Every August and September, millions of families scramble. Schedules reset. Budgets stretch. Stress spikes. Smart founders who understand this annual frenzy can launch lean, high-demand businesses that solve real problems right when people are most willing to pay for relief. Here are five of the strongest startup opportunities timed to the K-12 school-year launch. 1. Hyper-Local Tutoring and Homework Rescue Parents will pay for peace of mind the moment report cards and progress reports start arriving. A focused tutoring service—virtual or in-person—targeting specific grade bands or subjects (elementary reading, middle-school algebra, high-school STEM) can scale quickly with independent contractors. The best models combine short diagnostic assessments with flexible evening and weekend slots. Add group “homework clubs” or test-prep intensives and the margins improve further. 2. Ready-to-Go School Supply and Uniform Kits Big-box stores still leave parents hunting for the exact brand of glue sticks or the right shade of navy polo. Curated, school-specific supply kits delivered to the door remove that friction. Partner with local PTAs or school secretaries for accurate lists, offer customization options, and sell both standard and premium versions. The same model works for uniform packages, gym clothes, and even first-week lunchbox essentials. 3. After-School Enrichment Micro-Programs Traditional daycare fills up fast and often feels like warehousing. Parents increasingly want short, skill-focused programs—coding clubs, debate practice, sports skills, art intensives, or outdoor adventure groups—that run two to four days a week right after the final bell. These can operate out of rented church rooms, community centers, or even underutilized school spaces. Low overhead, high perceived value, and strong word-of-mouth potential. 4. Meal Solutions Built for School Nights The 5 p.m. scramble is real. Subscription meal kits designed specifically for school-week dinners, grab-and-go breakfast packs, or healthy packed-lunch services solve a daily pain point. Focus on kid-friendly nutrition, allergy awareness, and packaging that survives backpacks. Local delivery or school-pickup options increase convenience and justify premium pricing during the school year. 5. Parent Logistics and Coordination Platforms Carpool coordination, extracurricular schedule syncing, last-minute sitter networks, and even simple “who’s bringing the snacks” tools remain surprisingly fragmented. A clean, mobile-first platform that connects parents within the same school or neighborhood can generate recurring revenue through subscriptions or transaction fees. Start narrow—one school district or one activity type—and expand once the network effect kicks in. Why Timing Matters These ideas succeed because demand is concentrated and predictable. Marketing can be laser-focused on the six-to-eight weeks surrounding the start of school. Social media ads, partnerships with pediatricians and realtors, and booths at back-to-school events deliver efficient customer acquisition. Many of these businesses also enjoy natural expansion into the rest of the academic year once trust is established. Execution Notes for New Founders Keep the first version simple. Validate demand with pre-orders or waitlists before investing heavily in inventory or space. Prioritize reliability—parents will forgive higher prices far more readily than they will forgive chaos or no-shows. Collect feedback aggressively in the first month and adjust offerings accordingly. Finally, design the business so it can breathe during summer and holiday breaks rather than fighting the calendar. The school year resets every fall. The families who dread that reset are looking for help. Entrepreneurs who show up with practical solutions at exactly the right moment can build something both profitable and genuinely useful—right as the first bells ring. Want to Accomplish More for Your Business? Do you want your company to grow faster and earn more while spending more time with your family doing everything you started your business to do? We can make that dream a reality. Give us 30 minutes, and we will show you how to get your life back. Skeptical? Good! Put us to the test. You can call us for your free appointment at 480-636-1720, or, if you prefer, <a href = "mailto:info@watersbusinessconsulting.com”>send us an email. You can also visit us at Waters Business Consulting Group to learn more about us and the services we offer.

What are the Pros and Cons of Giving Small Business Employees Holiday Bonuses

Small Business Employee Holiday Bonus Cons

Small Business Employee Holiday Bonus Pros

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Steps to Starting a Successful Side Business

Not Conducting Exit Interviews? Here’s What You’re Missing

The Back-to-School Startups Poised to Cash In When the Bell Rings

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