Recently during a leadership seminar the speaker used the phrase: “Being safe and making an impact do not happen together.“ As I look around our mask-clad world today I wonder how many impactful activities will be cancelled or postponed? How many impactful events will simply never happen? And how many canceled plans will adversely affect so many others through a ripple effect of events?
In a time and space when our children were given a passing grade and simply moved along to the next stage of their lives, we used to call it “a hall pass.“ And you’re seeing this phenomena today as people have their food delivered, their jobs delivered, their education delivered, their everything delivered. I wonder, where are we headed?
I look around my world and realize we’re living in an age where using cash is frowned on or simply not acceptable, a world where our information comes through a small device that looks and listens back at us. Our lives are directed by actions and decisions that tend toward extreme comfort. Therefore, I can’t help but watch and wonder as the world becomes more complacent and “comfy” with working from home while never having to get dressed or leave for work every day. When we finally emerge from this time and space, we will do so from an environment of “stay safe/stay clean.“ And I wonder if we will look back and say to ourselves “Wow, while I was sitting at home, having my life delivered to me, I am so incredibly proud of the impact I made in the lives of others.”
My guess is most of us would respond with a resounding: “No!”
As human beings, our nature is to form groups and clusters. We need each other to be the best we can be so the group prospers. Just as we require fresh air and hard work to stimulate our health, we need to gather together in meetings, school rooms, parks, teams, backyards, and places of worship. We need weddings and funerals, if only to have opportunities to reach out and hug one another. We need to love and be loved. We desire connection and the ability to make a difference in the lives of others.
If you doubt this hypothesis and consider these the rantings of a sentimental old fool, then consider the overriding urge these last few months to support local businesses and charities and to do what we can to assist those who are struggling or are less fortunate then ourselves.
So, my friends, here is my question: In our businesses and in our lives -- whether it is during COVID times or non-COVID times – when are we making a real selfless and significant impact?
Our founding fathers were on to something because they wanted real change and they wanted to make an impact. Following our independence from Britain, their lives were far from comfy and safe, and their future prosperity was not certain. But through teamwork, debate and unquenchable passion they created a foothold to build on and the structure by which our society thrives to this day
As you make our To-Do Lists to start your day/week/month/quarter, keep in mind that what you focus on — expands. Therefore, I suggest focusing on integrating into your routine the means to allow you to have a significant and measurable impact in the lives of others.
Good luck and God bless.
Troy Clogg is the founder and president of Troy Clogg Landscape Associates in Wixom, Mich. He is a frequent Snow Magazine contributor and a 2010 Leadership Award recipient.
Admittedly, what you most likely heard from the ASCA over the last few months had a lot to do with September’s virtual Executive Summit. Yes, we may have flooded your inboxes with announcements and invitations extolling the benefits and virtues of our two-day online educational and networking event, but we were very excited about getting you involved in the experience that temporarily took the place of our annual in-person event.
But with 2020 Executive Summit behind us, what I want to address today is our continued fight for the professional snow and ice management community through these highly unusual times. As you know, legislative initiatives and the upkeep of the ANSI Industry Standards for the snow and ice management industry are two of the ASCA’s highest priorities.
Here’s an update on our activities with these two initiatives.
Legislative
Our fight for positive legislative change is primarily in the state-level legislative trenches. The COVID-19 pandemic brought most state legislatures to a virtual standstill on non-COVID legislation, which included initiatives that, during a “normal” year, would have included our legislative interests. While the pandemic remains, legislatures in our key states are back to business as usual. Most state legislatures have returned to work debating and considering a broad spectrum of legislation. With the November election on the horizon, elected officials are aware they must show their constituents they are working for them on everything. Therefore, we expect and are experiencing more activity and conversations on the ASCA’s model legislation, The Snow Removal Limited Liability Act, which levels the playing field in indemnity language in snow contracts.
Specifically, we have been working very closely with the Pennsylvania state legislature and our lobbyist in Harrisburg to create some forward momentum for our bill, House Bill 1702. The plan is to include ASCA’s model legislation, House Bill 1702, into a similar bill, House Bill 1887. This bill may be up for consideration by the Pennsylvania House of Representatives in the coming weeks. The Pennsylvania snow and ice management community must rally around House Bill 1887 and amendment A07334 and generate support among state legislators. Therefore, we need Pennsylvania contractors to contact their state representatives and urge them to support House Bill 1887. Contact me directly (kgilbride@ascaonline.com) for detailed instructions on how to connect with your rep.
In New Jersey, I’m excited to say our behind-the-scenes work in Trenton, in conjunction with our partners at the New Jersey Landscape Contractors Association (NJLCA), has resulted in additional support to reintroduce our model legislation. We anticipate Garden State legislators will reintroduce our bill, with bi-partisan support, in the near future.
Likewise, the ASCA continues to work with its strategic partners in other snow states to get the model legislation introduced and passed.
Industry Standards
The ASCA continues to maintain the System Requirements for Snow and Ice Management Services: ANSI/ASCA A1000-2014, commonly known as the Industry Standards. These standards provide a compressive outline for the processes and procedures for snow and ice management companies to maximize operational efficiency and reduce risk. Most importantly, they provide snow and ice management companies the proper documentational requirements helpful in defending your company against slip-and-fall litigation.
The ASCA is currently preparing for annual audit on the Industry Standards, and will have this process completed in early 2021.
Other News Of Note
The ASCA encourages member involvement not only in legislative initiatives, but also in other aspects of the association’s endeavors.
I can’t stress enough that the strides we’ve made and the accomplishments we’ve achieved have been a group effort and could not have been realized without the commitment of association members’ time and energy. While my role as Executive Director places me as the face of the association, the ASCA is the sum total of the efforts and commitment of its membership. And we are only as strong and effective as the involvement of those members who, when needed, have stepped up to the plate and swung for the fences.
If you’d like to get involved for the betterment of your industry, contact me directly. There are a variety of outlets I can match you up with, from serving on an association committee to rallying industry support for legislative change in your home state. Trust me, there is no better feeling then knowing you’ve played a significant role in positive change that impacts and betters an industry.
Lastly, I’d like to announce next year’s Executive Summit is taking place at the Omni Amelia Island Resort, which was the intended site of this year’s event. It is an incredible facility and the perfect site for professional development and networking. The dates will be announced as soon as they are worked out with the host facility. Let’s hope the pandemic is but a distant memory by then, and the only concern is for lots of sunny weather.
Kevin Gilbride is the ASCA’s Executive Director. You can reach him directly at kgilbride@ascaonline.com.
Opportunity Knocks
Features - Finance & Accounting
Seeking a patch for rapid growth? Or perhaps an avenue to cash out? An M&A may be the answer you’ve been seeking, and now may be the best time to pursue it.
It may sound callous but, because of the current state of the economy, now might be a good time to pick-up or sell a distressed snow and ice management business. After all, handled properly, mergers and acquisitions (M&As) allow the acquiring business to acquire another operation under favorable terms that is a good fit, and that might not otherwise survive.
A M&A transaction can also mean helping a troubled business survive without the owners or shareholders completely losing what they’ve built up over the years. Equally important, a M&A can save the jobs of workers.
Although more than one snow removal business has gotten into trouble in a M&A transaction, acquiring smaller business usually limits much of the risk. Plus, there is now insurance to further reduce the potential of risk, fraud or misrepresentation.
VIVA LA DIFFERENCE
Mergers and acquisitions are similar in nature, but they do have a few major differences. Mergers combine two separate businesses into a single new entity. True mergers are uncommon because it’s rare for two equal businesses to mutually benefit from combining resources and staff.
Unlike a merger, acquisitions do not result in the formation of a new business. Best compared to buying an existing business or franchises, with an acquisition the purchased business is fully absorbed by the acquiring company. This often means the acquired business is liquidated.
WHY ACQUIRE
Mergers and acquisitions are an efficient and effective method of growing and expanding a business without investing time and resources. Obviously, there must be a strategic fit between the snow removal business and the operation being acquired, but think of the many ways in which acquisitions are desirable such as:
Expanding the customer base
Trimming and streamlining the operation will increase profit margins by eliminating inefficiencies.
Acquiring a quality management team and new talent means new ideas, thoughts and mindsets that can challenge the snow removal operation’s current workers to start thinking outside the box.
Better customer service. Every business, regardless of size, needs to ensure customers are happy with what the operation is providing.
Beating the competition. A business that chooses to remain stagnant and uninterested will inevitably be overtaken by the competition.
WHY ACQUIRAL MAY BE GOOD
When the owners of a snow and ice removal business are worried about liquidity, about making payroll or paying the bills, one of the few options to sustain the troubled business or get some benefit and liquidity for it is via a M&A. Selling to a competitor, another strategic player or even a financial investor may be the only way of preserving the operation.
Creative deal structures involving earn-outs and other forms of contingent consideration may be useful in bridging valuation gaps. A lower asking price with payments spread over many years, obviously benefits the buyer and mean a smaller tax bite for the seller.
PUTTING A PRICE ON A M&A
A key question in every M&A transaction relates the value of the business. Fortunately, much like the other terms in a M&A deal, offer price and valuation are negotiable.
If the parties to a M&A transaction are unable to agree on an acquisition price, one solution might be a so-called “earnout” to bridge the different prices. An earnout is a contractual provision that allows a seller to receive additional consideration later if the business sold achieves certain financial metrics, such as milestones in gross revenues or earnings before interest, taxes and amortization (EBITA).
Although an earnout can pose significant risk for the owner/shareholders of a selling business, it creates a path for the selling stockholders to ultimately receive the return they seek from the sale of their business.
PAYING FOR IT ALL
Because M&As are expensive, adequate funding is a necessity. Fortunately, financing an M&A transaction with stock is a relatively safe option for both parties since both share the risk.
In many share-exchange transactions, the buyer will exchange their shares for shares in the business being acquired. Paying with stock is especially advantageous for a buyer, especially if their shares are overvalued.
In a merger, shareholders on both sides can reap long-term benefits of a stock swap as they will generally receive an equal amount of stock in the newly formed operation, rather than simply receiving cash for their shares.
Paying with cash is another, potentially expensive from a tax standpoint, alternative. After all, cash transactions are instant and relatively mess-free and usually don’t require the same kind of complicated management as stock would. Unfortunately, smaller snow removal contractors, without large cash reserves, must usually require alternative, and expensive, financing to fund their cash transaction.
Another popular alternative to paying for a M&A with stock or cash, involves agreeing to take on the debt owed by a seller. After all, for many businesses, debt is the reason for the sale.
ASSUMING THE BURDEN OF DEBT
Unfortunately, debt can often reduce a business’s value, often to the point of worthlessness. From a buyer’s point of view, this strategy is often a cheap means of acquiring assets.
Being in control of an operation’s debt can mean increased control over management in the event of a liquidation since owners of debt have priority over shareholders. This can be another incentive for would-be creditors who may wish to restructure the new business or simply take control of its assets.
EMPLOYEES AND BENEFIT ISSUES
As already mentioned, snow and ice management businesses enter into M&A transactions for various strategic reasons with the view to create synergies, to enhance capability, enter a new market or gain in economies of scale. But the M&A should not be viewed only from the economic point of view. It should also consider the workforce.
M&A transactions, even smaller deals, typically involve a number of important employee and benefit issues that will need to be addressed. Naturally, any M&A may result in job losses or changes in work culture that impact on morale.
Fortunately, much of the confusion during and after the M&A can be reduced with regular communication. Keeping the workforce updated, answering their questions and attempting to alleviate any doubt they may have.
CAVEATS
The various coronavirus relief measures make caution advisable. Buyers should have a good understanding if the targeted snow and ice removal business took PPP loans or employee retention payroll tax credits.
Both parties should agree on the treatment for the loan or potential forgiveness, alone with the impact of new legislation. Plus, the business being acquired should be examined for opportunities with payroll tax deferral, qualified improvement property or losses that may be carried back for refunds under the CARES Act.
On the downside, M&A deals are often difficult to accomplish. The interests and objectives of sellers and buyers are all-too-often discordant. The owners and shareholders of a business being acquired want the highest price with little or no residual risk or liability. Acquiring businesses, the buyers, want the lowest price possible with maximum recovery options.
The coronavirus pandemic has had a significant n impact the on business in general and requires everyone to be realistic about how their business will perform in the new normal. The pandemic has also created a tremendous opportunity for M&A transactions where both acquiring and selling business can benefit. Naturally, expert tax and legal advice are strongly recommended.
Mark E. Battersby is Snow Magazine’s financial writer. He resides in Ardmore, Pa.
You Don’t Have All The Answers
Features - Professional Development
It’s okay to admit your leadership uncertainty. And once you embrace this, you will find tremendous opportunities in uncertainty to help shape a positive future.
Leaders are often expected to have all the answers. Not only is this an expectation shared by many, it is regularly self-imposed. If you do not have the answer to a leadership challenge, you may possibly feel inadequate or uncertain and vulnerable. None of these emotions feels good, and are often frowned upon in the workplace—or so you may have been taught.
Really? Are you really never supposed to experience uncertainty as a leader? You are a human being and hard-wired for struggle – stuff happens. You are comprised of all the good, bad, and ugly that comes with being a human, which is not the Hollywood version of leaders who ride into the scene to save the day. And with your humanness, you will sometimes—make that many times, feel uncertain about your abilities.
How do you work with uncertainty and vulnerability without going crazy? Follow these five steps which will assist you during these times
Embrace Uncertainty and Vulnerability
Reach into any doubts and fears you have and pull up and out all the anxieties and doubts. What do most leaders do with this uncertainty? Well, bury it of course. This strategy of burying and numbing may work for a while, that is until it shows up again as illness, ulcers, or worse. Why do you think people in leadership roles are so stressed, obese, and addicted? It is because feelings get buried and numbed.
The interesting thing about the numbing strategy is that when you numb your “bad” feelings such as uncertainty, vulnerability, doubt, and fear you are also numbing your “good” feelings of joy, peace, and gratitude.
Stay Present
Do not worry about the future or live in the past. The only moment you have to live in is the present one, so why waste it? The nature of uncertainty is that the future is unknown. Time spent fretting about what might happen is just an exercise in fiction.
What does living and embracing the present moment bring? This moment of uncertainty and vulnerability is where creativity, joy, and beauty are found. Great art is created in the vulnerable state of uncertainty and presence in the moment. Walking through the door of uncertainty and vulnerability is full of endless possibilities because this is the location of your true, authentic self. Peace is found in authenticity.
When you start to compare yourself to others, you set yourself up for failure. It is not because you cannot be as successful as someone else can be, but because you cannot be anyone else. The only thing you can be is the best version of you – your best, authentic and true self.
This can be a challenge during times of uncertainty because you may see others who are dealing with uncertainty with more ease. Instead of going to a place of comparison, pull away and observe. Has this other person tapped into the present moment? Are the creative juices flowing for that other person? Are they peaceful because they are authentically in touch with their fears, concerns, or excitement about possibilities? Observe, learn, and know that you will find the most peace when you aren’t pretending but are authentically you.
Practice Gratitude
Nothing else will bring you into the present moment faster than gratitude. When you practice gratitude, you are reminded of the blessings and opportunities that surround you right now. The funny thing about being in a state of gratitude is that when you focus upon that for which what you are grateful, you receive more. Yes, more.
That which occupies your mental and spiritual focus shows up in all aspects of your life. Therefore, if you are focusing on those factors that make you grateful, you will have more of those results showing up.
Remember that the converse if also true. If your focus is on worry, fear, and a scarcity mentality, get ready for more worry, fear, and lack showing up. Your thoughts are a powerful force, so be intentional and strategic about where you put your focus.
Be Truthful
Be gentle and graceful with yourself and others during times of uncertainty. All the feelings you are having in these times, just know that others are having them too. When you practice loving kindness, you will find patience, grace, and empathy. Tell yourself the truth about how you are feeling and be prepared for both positive and negative feelings and thoughts coming back to you. Honor and acknowledge all the responses you receive and intentionally shift to more supportive and loving feelings and thoughts. How do you shift? Do what gives you joy and be present to fully enjoy that activity. The only certainty we have is the present. What is certain is what gives you joy. It really can be that simple in what seems like great complexity.
Remember that uncertainty and vulnerability is the birthplace of truth, authenticity, creativity, and beauty. If you choose (yes, it is your choice) to step into and embrace the uncertainty, stay present in the moment with gratitude, and give yourself loving grace, you will find tremendous opportunities in uncertainty to help shape a future that you may not have otherwise dreamt possible.
Snow Magazine contributor Dr. Maria Church, CSP, CPC, is a speaker, consultant, and executive coach.
Work/Life Balance in the Virtual Workforce
Features - Professional Development
When you work remotely there’s very little natural boundary between your workday and the rest of your life. Apply these tips to build and maintain greater balance so work doesn’t take over everything else.
According to a recent report, the average “pandemic workday” is 48.5 minutes longer than before. It also shows we are attending about 13 percent more meetings and sending 1.4 more emails per day to our colleagues. But this uptick in productivity has a downside: It’s destroying many people’s work/life balance. Our work/life balance is already in jeopardy thanks to the impact of COVID-19. Extended workdays only intensify the situation. We are all working hard at our jobs while trying to homeschool our kids, keep the household in order, and still carve out time to connect with loved ones and enjoy our lives. It’s a challenge for everyone.
When you work from home, the “workday” becomes a slippery slope – especially when you’re constantly interrupted by your kids to help them get their schoolwork done online. If you’re not careful, meeting your work demands in this chaotic environment can crowd out your other priorities. But you can take back control by getting very intentional about protecting your work/life balance in these unusual times.
We all need time to recharge from work. By setting some healthy habits for greater balance, you’ll be a much better employee or leader during work hours, and you’ll have more energy and focus for the other things you value. Here is your to-do list for living a balanced life.
Commit Balance To Your Life
Recognize the need for balance and commit to addressing it in your life. If you devote all your time to work, then you’re going to be neglecting the social, spiritual, and a multitude of other important aspects of your life. Be a whole person; be fulfilled in all aspects of your life.
Figure Out What Works For You
The “right balance” is a personal thing and will change for each person at different times in their lives. There is no “one-size-fits-all.” What we need as a young adult is different from what we need in our senior years. It also may be very different based on our culture, our gender, or any variety of factors. The point is, it is unique for each of us, but definitely something we require in our lives.
Take Digital Precautions
Beware of the technology chains that bind. Cell phones and PCs blur the distinction between work and personal time. Don’t fall victim to this temptation. In the age of nonstop virtual work meetings, you’re probably already sick of technology by the end of the workday. Spend time outside of work away from your devices. Have a conversation with someone in your household. Take a short walk for fresh air. Read a chapter in a book.
Lean On Your Faith
Faith makes all things possible. It offers me a healthy way to balance all personal, interpersonal, work-related, and community responsibilities. It is a rock to stand on in this crazy world…strength.
Be Organized
The most important issues related to having a good balance are organization, planning, and time management. This could mean planning meals a week in advance, laying out clothes the night before, and spending as much evening time with young children as possible.
Put In The Effort
Recognize that balance takes work. Balance is a necessary part of life -- especially right now. It’s up to you to manage it. The choices made have costs and benefits associated with them. It is something that always has to be kept in mind to ensure that no component is neglected for too long. Here are some choices to think about:
Consciously separate work and home.
Consciously put family first.
Work fewer hours. In work-from-home scenarios, set boundaries between work time and leisure time.
Choose shift work so one partner is home to care for other family members.
Learn to make do with less.
Have Goals
Know your goal and plan accordingly. Know your priorities in life and what’s important.
Don’t sweat the small stuff. “I don’t stress out about daily life situations and I remember how fortunate I am to be healthy and safe,” says Gaines. “Most of all, you live only once and you need to strive for what you want and make the best of it. I don’t want to regret anything I didn’t do now when I am older.”
Enjoy Life
Focus on what is going well, not what is stressful. Take time to play, laugh, love, work, cry together, and respect each other. We all make mistakes at home and work. Take time for yourself and smile.
Strong Body, Strong Mind
Remain fit and use exercise as a way to deal with stress. I feel people who exercise regularly are better able to handle stress. Whether it’s 5 a.m. or 6 a.m. in the evening, exercising can improve the quality of your day. I also believe in recognizing the need for leisure activities that you enjoy, feeling connected to the community, and having goals for the future.
Make A Date
You have probably heard about this trend for married couples to have a date night actually scheduled. I would like to push you into starting a new trend: date night, or morning…lunch…weekend…with yourself. If scheduling works best for you (it does for me), go for it! During your date time, do whatever it is that makes you happy – exercise, read, meditate, pray – whatever gives you just a small break for yourself. You will be surprised at the change you immediately start to feel in the quality of your life.
Remember, there is no magic pill that helps you find balance. We have to spark that journey in ourselves or continue on the cycle of madness. Finding balance has to be a priority. A balanced life does not equate to 50/50 at all times either. However, if we are always running crazy, we will eventually implode. Strive to tilt the scales in the other direction, too.
Jackie Gaines is an executive-level coach, senior director, national speaker, and best-selling author. She is an award-winning senior executive with more than 40 years of sustained leadership experience.
Troy Clogg
