Management

Article Dean Dorton

Operators need to monitor the following risk areas to stay competitive 2021:

1. Cybersecurity

Convenience stores should comply with PCI standards in order to protect cardholder information. Also be aware of skimming, in which devices are affixed to gas pumps and ATM machines to steal credit card information. C-stores should implement procedures to monitor pumps and ATM machines, and prevent and/or remove such skimming devices. Additionally, establish controls around the use of artificial intelligence to better understand consumer buying habits. Companies have until April 17, 2021 to comply with EMV chip card technology. Companies should invest in a proactive cybersecurity program which includes training programs to educate employees on common phishing scams.

2. Social Media & Mobile Technologies

Social media is increasingly becoming a part of everyday life. Incorporating social media into your business model can improve customer service and provide a low-cost alternative to traditional advertising. More than half of all buying is expected to occur on mobile devices. Therefore, having mobile applications is crucial to achieving success. Incorporating a rewards program in an app can lead to customer loyalty and increased sales.

3. Food Service

Food service sales continue to drive the success of the convenience store industry, and you risk losing out on business if you do not invest in food service. Because customers are looking for healthier food options, the c-store industry has seen large sales increases in “better-for-you” items, with lunchtime traffic as the biggest opportunity. Continued trends in 2021 are going green, customization, unique experiences, healthy options, and tech takeover.

4. Wage Rates

The focus on driving up federal and state minimum wage requirements will get additional attention as the U.S. sees a transfer of power in Washington D.C.

5. Regulation Compliance

Increased regulation may result in higher prices for products such as e-cigarettes and other vapor products, diet and energy drinks, and dietary supplements, or a ban on those products altogether. Convenience stores must also comply with regulations regarding sales of alcohol, tobacco, and lottery tickets or face serious fines and penalties.

6. Softening Tobacco Market

While the tobacco market is stable, cigarette consumption is slowing as consumer demand flattens. E-cigarettes can be an important product line in c-stores, as almost half of adult smokers are looking for an alternative to cigarettes. Cigarette taxes have been rising, which will impact demand as well.

7. Shortage of Truck Drivers

The average age of a truck driver is 55, so all industries need to work together to identify an expanded labor pool. Currently community colleges are expanding programs along with a focus on female and military veteran drivers. The shortage of truck drivers can create delays in shipments to stores, inventory shortages, and frustrated customers. The LA Times reports 1.7 million American truck drivers could be replaced by self-driving trucks over the next decade.

8. Environmental Trends (Going Green)

Environmental trends are changing the landscape of c-stores. Plastic straws and disposable cups have been marked as ecological hazards. The industry needs to work together on finding alternatives to risk not losing its customer base. California has issued a ban on new gasoline cars by 2035 which puts an emphasis on developing battery powered vehicles and the need for c-stores to add charging stations.

9. COVID-19 Impact

COVID-19 has caused a substantial decline in travel and gas consumption. C-stores have to expand marketing to draw traffic for food and other items beyond fuel.

Beyond 2021, operators need to monitor competition from nontraditional c-store locations and sources. Amazon and Dollar General are both evaluating c-store options. Operators have also expressed concern in recruiting top talent and having to explore nontraditional labor pools. Additionally, significant changes in the automobile industry in the next 10 years will see autonomous vehicles, ride sharing programs and battery powered vehicles which will dramatically reduce the fuel supply provided by c-stores. C-stores provide approximately 80% of the fuel purchased in the U.S.

Sources: csnews.com, dol.gov, nacsonline.com, convenience.org

Article Dean Dorton

In the mission-driven nonprofit world, accounting and financial management can sometimes slip down the priority list. It’s not always easy to allocate budget dollars to back office infrastructure that doesn’t directly support the nonprofit agenda, and it’s even harder to find the time and expertise to make it all work. Consider some of the obstacles:

  • Capital investment for software and hardware
  • Facilities and expert personnel to implement and maintain the system
  • Lengthy deployment cycles
  • Capacity/scalability
  • Reliability/availability

These issues aren’t part of most nonprofit organization’s core competencies. That’s why many nonprofits are increasingly turning to new-generation, cloud-based solutions to automate financial management. Cloud-based financials enable the application vendor to deliver shared, scalable services that any nonprofit agency can access over the Internet using a web browser or mobile device. There’s no need to buy, own, license, understand, manage, or control the underlying hardware, software, or data/networking infrastructure that supports the financial infrastructure. Cloud services are typically delivered on a term-based subscription, eliminating the need for upfront software licensing fees or major purchases of hardware. The result is cost-effective, anytime, anywhere managed access.

While the urge might be to invest in programs rather than technology, it may be wise to calculate how a modest investment in technology can transform operations and ultimately help better managed programs. Cloud technology is much easier to implement than legacy systems of the past, and quickly delivers return on investment.

What do nonprofit financial leaders have to say about their move to the cloud?

Nikki Jones, Controller, Healthcare Businesswomen’s Association

All of our chapters can access our cloud-based financials. We have volunteers working all over the world at all hours of the day and night.  With our system, they access the same world-class financial foundation that many companies use. Our board and chapter leaders have real-time access to reports, registrations, metrics, and analyses. That means we’re constantly on top of our operation and can make strategic decisions faster. For us, the cloud is critical. It’s the only way to go.

James Linday, Vice President and CFO, Great Books Foundation

Cloud financials are absolutely key to running a nonprofit today. Now we can eliminate lots of manual work, be more productive, and eliminate all of those capital investments. This is a predictable, flat operating expense, and we save at least $30,000 a year this way.

In nonprofit financial management, survival depends on predictable costs, a reliable infrastructure, and world-class functionality.

Key Best Practices for Survival:

  • Move financial management to the cloud for optimal accessibility and lower cost
  • Enable global real-time access to financials, reports, and analysis
  • Use cloud architectures to eliminate manual work and improve productivity while providing world-class functionality that far exceeds primitive single-user tools

To learn more about the cloud-based financials we recommend, you can view this short,  on-demand video:

Cloud-based Financials Video

Is an outsourced solution right for you? Learn more about how Dean Dorton’s team of financial experts can take the financial burden off of your shoulders.

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