Small Business Strategies for Company Profitability and Sustainability part 3

44 as means of gathering research data. Qualitative researchers collect data by observing behaviors, exploring documents, and interviewing participants to record their perceptions (Denzin & Lincoln, 2011). Although qualitative research allows for many ways in conducting investigational research, interview design has remained one of the most popular forms of analysis (Turner, 2010). Qualitative researchers explore essentially all problems and social situations (Yin, 2011). A mixed-methods or hybrid approach includes both qualitative and quantitative techniques in a single study (Clark, 2010). This study did not require evaluating or comparing variables, so a quantitative or mixed methods approach was not appropriate. Qualitative researchers focus on a small number of participants, gaining in-depth insights into their perceptions and lived experiences (Denzin & Lincoln, 2011). A qualitative methodology was most appropriate for this study in exploring strategies small business owners used to achieve profitability by the end of the first 5 years of opening their business in Denver, Colorado. Research Design I selected a descriptive multiunit case study design for this qualitative research study. Research design refers to a plan that involves exploring research questions and drawing conclusions for a study to prepare a model or report (Leedy & Ormrod, 2013). Petty, Thomas, and Stew (2012) stated that ethnography, grounded theory, phenomenology, and case study make up the main designs for qualitative research studies. In an ethnographic study, a researcher explores daily lives, behaviors, and.

45 activities of a culture or community (Pritchard, 2011). I was not studying a culture or community over time; therefore, an ethnographic study design was not selected. Smythe (2012) concluded that a grounded theory design would enable the development of a general, more abstract theory of the process, action, or interaction. Grounded theory is not appropriate for this study and was not selected because I was not developing a new theory. Grounded theory researchers seek to develop theories that can fit the phenomenon (Smythe, 2012). Englander (2012) described the phenomenological design as appropriate when the researcher seeks to interpret lived experiences from the perspective of others. The researcher is interested in gaining an understanding of and insights into experiences, behaviors, attitudes, processes, and opinions (Rowley, 2012). Although I was exploring the lived experiences of the participants through interviews, I also utilized company documents. I would have had difficulties reaching data saturation in a phenomenological study of small business owners in Denver, Colorado because of only obtaining interviewing data and not being able to collect and use other data sources. Therefore, I did not choose a phenomenological design. A case study design includes an in-depth exploration of a small number of cases or a single case (Verner & Abdullah, 2012). Case studies offer an advantage in cases of when how or why questions are asked about a contemporary set of events, over which the investigator has little or no control (Trkman, 2010; Yin, 2011). Case study design is useful when the researcher must take into account the contextual conditions of the phenomenon being studied (Amerson, 2011). Researchers often utilize a case study design in researching emerging ideas from multiple sources (Trkman, 2010). I gathered.

46 data using methodological triangulation of interview questions with the participants and company documents. Methodological triangulation of different sources increases the assurance of validity of the case study findings (Verner & Abdullah, 2012; Yin, 2011). One source can corroborate the evidence from another source; this reduces the risk that any single interpretation of data will shape the results (Verner & Abdullah). A descriptive multiunit case study design aligns with qualitative research and was appropriate for this study. Methodological triangulation provides one with a more comprehensive picture than one type of data can do alone (Heale & Forbes, 2013). A case study design is the preferred method when (a) a researcher has little or no control over behavioral events; (b) the main research questions are how or why questions; and (c) the focus of study is a current, not historical phenomenon (Yin, 2014). There are three types of case study research, (a) descriptive, (b) explanatory, and (c) exploratory (Yin, 2014). Descriptive case studies are appropriate for illustrating events and their specific context. Explanatory case studies are appropriate for investigating causality and intend to link an event with its effects (Yin, 2014). Exploratory case study researchers seek to define research questions and hypotheses (Yin, 2012). A multiunit descriptive case study design was expected to enable me to explore success strategies through interview data and company documents from small business owners. Population and Sampling The population selected for this qualitative study included a purposive sample size of four profitable small business owners. Purposeful sampling allows a researcher to obtain participants who will be rich in information providing in-depth knowledge of the.

47 phenomenon (Abrams, 2011). Leedy and Ormrod (2013) described that in purposeful sampling, researchers use their judgment to select participants based on the study criteria. An important part of the design of both, analytic and descriptive studies is determining the appropriate sample size for the study (Rao, 2012). The goal of sample size planning is to estimate an appropriate number of participants for the study design selected (Rao, 2012). The sample size should reach the number of participants sufficient to meet data saturation standards, in which the datum becomes repetitive (Dworkin, 2012). A sample size of four participants, while utilizing methodological triangulation with member checking facilitated reaching saturation for this study. Saturation can be a tool used for ensuring that quality and adequate data is collected to support the study (Walker, 2012). The criteria for selecting participants included, over the age of 18, small business owners in Denver, Colorado, and who have been profitable in business by the end of their first 5 years of being open. The interviews took place where the participants decided as being convenient to them, at their business location in a private room with the door closed. Turner (2010) noted that it is easier to conduct interviews with participants in a comfortable environment, where the participants are not likely to be distracted and can share information. Ethical Research I conducted this study after receiving approval from the IRB at Walden University with approval number 01-28-15-0246512. I followed the three basic ethics of research involving human subjects (a) the principles of respect of persons, (b) beneficence, and (c).

48 justice (Belmont Report, 1979). The participants received a letter of invitation through e- mail that explained the intent for the study. The e-mail included a Participant Consent Form (Appendix A) for the participant to review and sign electronically by replying to the e-mail I consent. The Participant Consent Form included a sample of the interview questions and explained that I would audio record the interviews. It also advised the participants that I would collect company documents. The Participant Consent Form also clarified that their participation in the study was voluntary, and they could withdraw at any time without penalty. In addition, that there was no compensation or incentives for their participation in the study and they would have access to the results; I would e-mail the results and findings to them. The participants were then contacted via telephone call to schedule the interview dates and times. Ethical issues are necessary to consider when conducting interviews (Qu & Dumay, 2011). Taking utmost care at all times during data gathering, data storage, and data analysis is paramount in protecting the rights of the participants and preserving their privacy (Yin, 2012). I stored the data electronically on a personal, password-protected, external hard drive and will delete the data after 5 years. I stored all of the written data and findings in a locked cabinet drawer; it will be shredded to protect the right of the participants after 5 years. I ensured the participants knew the purpose of the study and guaranteed confidentiality of both the participants’ and their organizations’. The participants were labeled Participant 1 through Participant 4. Data Collection Instruments In this qualitative multiunit case study, I was the data collection instrument. When.

49 the researcher is the main research instrument; their knowledge, sensitivity, and skills are essential to the quality of the knowledge produced (Kvale & Brinkmann, 2008; Rowley, 2012). Data for case studies have six origins and must be collected from at least two of the following six available sources; (a) archival records, (b) direct observations, (c) documentation, (d) interviews, (e) participant-observation (i.e. site visits), or (f) physical artifacts (Yin, 2012). I collected data from open-ended semistructured interview questions, yearly profit and loss documents, and monthly cash flow statement documents. Qualitative researchers are often referred to as the instrument. However, researchers can create other data collection instruments if desired (Leedy & Ormrod, 2013). In-depth, face-to-face semistructured interviews and company document review were the two primary sources for data collection for this qualitative descriptive case study. The semistructured interview involves prepared questioning guided by identified themes in a consistent and systematic manner interposed with probes designed to elicit more elaborate responses (Qu & Dumay, 2011). I developed and followed the interview protocol (Appendix C). The interview questions are available in Appendix C. I followed a case study protocol. A case study protocol is key for a multiunit case study design and aided me in keeping focus on my topic and assist in reliability (Yin, 2014). A case study protocol consists of (a) an overview of the case study, (b) data collection procedures, (c) the data collection questions, and (d) a guide for the case study report (Yin, 2014). Along with semistructured interviews, I collected company document data. It is important to complete member checking in a qualitative study, as it enhances the reliability of the research (Stake, 2010). Member checking is a participant validation.

50 technique for improving the accuracy and credibility of the study (Mero-Jaffe, 2011). To complete transcript review, I asked the participants to review the transcript to look for any errors or missing information. There were no scores to calculate or variables in the study because it was a qualitative case study. Data cleansing served to address threats to validity in addition to member checking. This process included detecting and removing data that did not conform to the search criteria. Data cleansing includes removing all irrelevant data (Terjesen & Sullivan, 2011). After the data cleansing was complete, I entered the verified interview transcript data into the computer assisted qualitative data analysis software (CAQDAS), called NVivo for Mac. Nvivo aided me with coding, word frequencies, emerging themes, and data interpretation. Data Collection Technique The research question for this study was: What strategies do small business owners use to achieve profitability by the end of the first 5 years of opening their business? The data collection techniques for this study were interviews and company documents. I conducted face-to-face, semistructured interviews in accordance with the interview protocol (Appendix C). During a semistructured interview, a researcher may introduce additional questions in addition to a fixed set of questions to further explore the phenomenon (Cachia & Millward, 2011). Semistructured interviews are the best way to address lived experience because participants are able to fully express their viewpoints and experiences (Turner, 2010). For this study, I used a modified version of Schorr’s (2008) semistructured interview questions. There was a need to modify Schorr’s prior interview questions.

51 because of the differences in details being measured. The interview questions (Appendix C) were altered slightly to gain more knowledge on success strategies as understood by the small business owners experience and insights. Appendix B contains a copy of the permission to use the interview questions. A convenient time and place for the participant to meet for the interview was be set up via telephone call. I allocated a longer time slot than scheduled with the participants, to allow for unforeseen events, such as interruptions or lateness of the participant to the interview. I called to confirm the interview date, time, and location the day before the scheduled interviews. Once I arrived to the interview location, the date, the time, demographics, surroundings, and participant interactions with others were noted and hand written in a small notepad of paper. I handed each participant a copy of their electronically signed Participant Consent Form (Appendix A) to review again before I started the interview questions. To build rapport and make the participant feel comfortable, I began with small talk prior to asking the first interview question (Leedy & Ormrod, 2013). I audio recorded the open-ended face-to-face interviews in a private room with only the participant present. The data reached saturation when the interview data and documents review became repetitive and no additional information was added (Walker, 2012) as applicable for a case study design. The interviews did not last longer than 30 minutes. Immediately following the interview, I collected company documents in the form of one year of profit and loss and cash flow statements from the participants. After transcribing the recorded interview answers, I e-mailed and asked the participants to perform transcript review for accuracy. I.

52 showed the participants the transcripts for their review of errors or discrepancies to enhance reliability as pointed out by Stake (2010). All of the participants agreed with the transcribed interview data. None of the participants requested changes or edits. After I completed data analysis, I returned to the participants and conducted member checking to capture the meaning of what was said. All of the participants found the results accurate. Data Organization Technique The participant interviews were recorded using QuickTime Player audio record option on my MacBook Air laptop during the interviews. I also had a hand held Sony audio recorder for back up. Both devices were tested prior to meeting the participants to ensure they worked properly, and the audio was loud and clear for me to transcribe later. I utilized a pen and small notepad of paper to record the day, time, and location of the interview. I collected company document data. I performed data cleansing by removing all irrelevant data that did not align with the search criteria. After data cleansing, I entered the data sources into Nvivo software for coding and analyzing. The collection and storage of all data are in alignment with IRB requirements. I am the only person who has exclusive access to all the data. I stored electronic data on a personal, password- protected, external hard drive and will be deleted after 5 years. I stored all of the raw data in a locked cabinet drawer and will be shredded after 5 years. Data Analysis I used the following modified semistructured interview questions from Schorr (2008) as one part of the methodological triangulation for this qualitative descriptive multiunit case study..

53 1. Tell me about your professional and educational background and do you believe your professional and educational background prepared you for ownership of a small business? 2. What strategies have you used to be profitable? 3. What are the key strategies you have used to sustain your business past the first 5 years? 4. What do you believe the profitability of your business has brought to you, your employees, your family, and the community? 5. What else would you like to share about your experiences of becoming a successful small business owner? In order to determine profitability strategies of small business owners in Denver, Colorado, the interview questions addressed the central research question. I also collected company documents in the form of yearly profit and loss statements and monthly cash flow statements. Methodological triangulation provides the researcher with a more comprehensive picture than one type of data can do alone (Heale & Forbes, 2013). Soon after the interviews, I transcribed the interview recordings and e-mailed them to each participant for their review. In addition to transcript review with the participants, I completed member checking. Member checking ensures that one has captured the accurate meaning and word choice (Houghton, Casey, Shaw, & Murphy, 2013). The participants confirmed all of the data was accurate and I uploaded the audio recordings into the computer assisted qualitative data analysis software (CAQDAS) tool, NVivo for Mac. I listened to and transcribed the audio recordings using NVivo’s.

54 transcribing feature. I was able to replay the recordings in slower motion, enabling me to type participant responses word for word. I removed all irrelevant data that did not conform to the search criteria; this process is known as data cleansing (Terjesen & Sullivan, 2011). Next, the remaining interview data were coded and analyzed in NVivo. I created codes for the participants and the interview data. I coded the participants Participant 1 through Participant 4. In a separate document, I listed the participants’ actual name and their assigned participant number. The documentation collected was labeled Document 1 through Document 4. The software program NVivo assisted me to identify word frequencies themes from the data. I created Nodes that allowed me to see coding stripes. Rowley (2012) suggested the following steps (a) organize the data set; (b) get acquainted with the data; (c) classify, code, and interpret the data, and finally; (d) present and write up the data. Software may allow a researcher to interpret and code the text, perform keyword searches, and organize the text (Rowley, 2012). The data displayed the key strategies that contribute to small business owner profitability in Denver, Colorado. Yin (2011) identified five stages of data analysis (a) collecting the data, (b) separating the data into groupings, (c) regrouping the data into themes, (d) assessing the information, and (e) developing conclusions. The interpretation and data analysis process began with my reviewing the transcribed interviews recorded and documents related to the research question. I then interpreted the data and developed conclusions. The conceptual framework that grounded this study was the general systems theory. General systems theory is the scientific exploration of wholes and wholeness (von Bertalanffy, 1972). I.

55 explored the small business owners’ multiple strategies they use, as a whole to become profitable. After revealing the profitability strategies, I compared the strategies to prior literature findings. Reliability and Validity Street and Ward (2012) explained reliability and validity are two widely agreed upon terms related to the accuracy and precision of research. Foley and O’Conner (2013) noted that reliability and validity do not have the same meanings in qualitative research as in quantitative research, but instead rely on such tools as semistructured interview protocols to attain commonality and strengthen the validity, consistency, and reliability. The concepts of reliability and internal validity in quantitative research are equivalent with the ideas of dependability and credibility in qualitative research (Munn, Porritt, Lockwood, Aromataris, & Pearson, 2014). There are different criteria utilized to assess the rigor of qualitative research, the most common including: (a) dependability, (b) credibility, (c) confirmability, and (d) transferability (Houghton, Casey, Shaw, & Murphy, 2013). Reliability The quality of qualitative studies is related to dependability (Onwuegbuzie et al., 2012). I followed the interview protocol (Appendix C) for each interview with participants and collected company documents. After the interview, the participants reviewed the transcripts to look for discrepancies or errors, which is known as transcript review. I also conducted member checking with the participants. Transcript review and member checking enhanced the dependability of my study results. Furthermore, the.

56 dependability of the data results were demonstrated by utilizing NVivo, a qualitative data analysis software tool. Validity Credibility is pertinent to qualitative research (Onwuegbuzie at el., 2012). The concept of dependability is aligned with that of reliability (Munn et al., 2014). Different from quantitative validity, qualitative validity involves credibility, authenticity, and trustworthiness (Leedy & Ormrod, 2013). In addition to the interview data, I collected company documents. The methodological triangulation of these two data sources enhanced the credibility of the study results. In addition to transcript review with the participants, I completed member checking. Mero-Jaffe (2011) posited member checking is a participant validation technique utilized to improve the accuracy, validity, reliability, and credibility of a qualitative study. Credibility assesses whether there is a match between the original source data and the researchers interpretation (Munn et al., 2014). I was the data collection instrument in this qualitative study; therefore, the credibility of the study was based on my protocols, procedures applied, and my self-awareness during the research process (Houghton et al., 2013). Validity includes areas of dependability, trustworthiness, credibility, and transferability (Mayer & Boness, 2011). Examining the degree to which qualitative findings can be transferred to other contexts or settings assesses transferability (Onwuegbuzie at el., 2012). Transferability refers to whether or not particular findings can be transferred to another comparable situation or context, whilst preserving the meanings found (Houghton et al., 2013). For the purpose of enhancing the transferability.

57 of my study, I provided the reader with a rich and detailed presentation of findings that includes direct quotes from the participants. Houghton et al explained confirmability is similar to dependability in that the processes for establishing both are alike. Confirmability refers to the neutrality and accuracy of the data (Houghton et al., 2013). The confirmability of the data was established by running frequencies of words and themes within NVivo for accurate analysis. An ample amount of participants were interviewed until data saturation was reached (Walker, 2012). I determined data saturation was reached once the data became repetitive and no new information appeared (Dworkin, 2012) as applicable for a case study design. A sample size of four participants, while utilizing methodological triangulation, transcript review, and member checking facilitated reaching saturation and improved the credibility for the study results. Transition and Summary In Section 2, I stated the purpose statement of my research study, addressed the role of the researcher, discussed the selected participants, and detailed the research methodology and design. Next, I described the (a) population and sampling method; (b) ethical research; (c) data collection instruments, technique, and organization; and (d) data analysis techniques. Section 2 concluded with a discussion on the methods and techniques for assuring the reliability and validity of my study. Section 3 begins with an introduction including the purpose statement and the research question. Next is the presentation of findings. Section 3 further includes (a) application to professional practice, (b) implications for social change, (c).

58 recommendations for action, (d) recommendations for further research, (e) researcher reflections, and (f) a conclusion..

59 Section 3: Application to Professional Practice and Implications for Change Section 3 begins with an introduction of the study that addresses the purpose of the study, the research question, and a brief summary of the findings. Section 3 continues with (a) a detailed presentation of findings, (b) application to professional practice, (c) implications for social change, (d) recommendations for action, (e) recommendations for further research, (f) reflections, and (g) a conclusion. Introduction The purpose for this qualitative descriptive multiunit case study was to explore what strategies small business owners used to achieve profitability by the end of the first 5 years of opening their business. Small businesses are the source of most job creations in the United States (SBA, 2014) and can be considered the engine of economic growth (Valadez, 2011). However, small firms have a very high job destruction rate; after 5 years, about 47% of the jobs initially created are eliminated due to failure (Haltiwanger, Jarmin, & Miranda, 2013). I conducted semistructured interviews with four profitable small business owners in Denver, Colorado. Semistructured interview questions led the participants and allowed for an exchange of their perceptions and relevant experiences (Bjerregaard, 2011). Methodological triangulating of the data sources included the comparison of the transcribed interview data with the company documentation (Oleinik, 2011). I did not use actual names of the participants. Once data saturation was reached, the data were entered into the qualitative analysis software tool, Nvivo to aid me in discovering key strategies to answer the overreaching research question. Based on the methodological triangulation.

60 of the interview data and company document data, the following emergent themes were identified: seasonality, passion and dedication, and hiring the right employees. Presentation of the Findings I used participant interviews and company documents, including profit and loss statements and cash flow statements to complete my methodological triangulation of data for this study. The data were collected to answer the following overreaching research question: What strategies do small business owners use to achieve profitability by the end of the first 5 years of opening their business? Of the two data sources collected, the largest amount of data were gained from the participant interviews. The data reached saturation when the interview data and documents review became repetitive and no additional information was added as discussed by Walker (2012). I entered the interview data and company documents into Nvivo, a qualitative data organization software tool. The following three main themes emerged: (a) understanding the seasonality of their business, (b) passion and dedication of the owner, and (c) hiring the right employees. The first theme that emerged involved the importance of knowing, understanding, and preparing for the seasonality of their small business. The second emergent theme included the small business owners’ passion and dedication to their small business. The third emergent theme revealed the importance of hiring the right employees. These emergent themes align with my conceptual frameworks used for the study, the general systems theory..

61 Participants and their Small Businesses The participants in this study included small business owners who comprised of (a) a bar and restaurant owner, (b) a daycare center owner, (c) a junk removal company owner, and (d) a construction company owner. Researchers at the SBA noted that small firms dominate the construction industry; 86% of firms in the construction industry are considered small (SBA, 2014). Small business owners align with the general systems theory by offering an individual product or service to support the community as a whole (von Bertalanffy, 1972). Each individual strategy that the small business owners use, come together as a whole to determine their strategies for profitability. All of the participants’ small businesses were located in Denver, Colorado. The interviews took place in a private room at each of the businesses. I asked each of the participant’s five semistructured open-ended interview questions using the interview protocol (Appendix C) as a guide. All four of the participants responded to all five of the interview questions. Concluding the interview, I collected their company profit and loss statements and cash flow statements. In closing, I thanked them for their participation in my research study. I then conducted member checking with the participants. To ensure that one has captured meaning and word choice, the use of member checking is critical (Houghton, Casey, Shaw, & Murphy, 2013). The bar and restaurant owner took over an establishment that has been there for 40 years (Participant 1). A firm may be small but long established (Audretsch, 2012). The owner has successfully owned the bar and restaurant lounge for 6 years (Participant 1). The daycare center owner previously ran a home daycare that operated out of her own.

62 house for a short period of time before purchasing the building and opening her own daycare center in 2007 (Participant 2). The junk removal business owner moved to a large warehouse in 2015, prior they were in a small office and needed room to expand because of company growth (Participant 3). The small business started in 2008 with only the owner and her mother as employees; currently in 2015, they have 17 employees. The business started as a company that specialized solely in hoarding cleanup seven years ago. The business since has grown to include (a) residential cleaning service, (b) yard cleanup, (c) office clean out service, (d) appliance and electronic recycling, and (e) household junk removal (Participant 3). The business gives back to the community by donating the items to churches, the Denver Rescue Mission, and the Salvation Army (Participant 3). The construction company owner had previously owned a snow removal business that operated for 4 years. The construction company owner started the business in 2004 and has been successful and profitable (Participant 4). Participants Educational and Professional Backgrounds The first interview question revealed one of the four participants had no college education, two had some college education, and one participant had completed their college education with a Bachelor’s degree (see Table 1). All four participants were high school graduates. Three out of the four had either some college courses or completed their degree, which supports Farrington, Gray, and Sharp’s (2011) statement that university studies benefit students in having a clear idea of expectations and understanding what having their own business would entail. Furthermore, academic programs in the field of small business ownership could help to improve the knowledge.

63 of future small business owners (Nasr & Boujelbene, 2014). The participants that had some college courses or completed their degrees, all had business courses while in college. The data aligned with Fadahunsi (2012) findings that the founder's level of education is a key factor that influences small business growth. Table 1 Educational Background of the Participants Participant Answers Number Percentage of Total High School Graduate No College 4 1 100.0% 25.0% Some College 2 50.0% Completed College 1 25.0% The first interview question also unveiled that one out of the four participants had prior business owning experience. Two participants had business backgrounds, but not business ownership experience, and one participant did not have a business background (see Table 2). Participant 2 previously ran a babysitting center out of her house before opening her daycare business. The data aligned with Alasadi and Sabbagh’s (2015) findings that many people start their own business due to previous experience in a particular business field. Participant 4 explained that her previous business failed in its third year of being in business (Participant 4). Failure can be a crossroads that can lead to future success of their next venture (Askim-Lovseth & Feinberg, 2012). In further support, Cope (2011) added experiencing failure better prepares one for the trials and.

64 tribulations of business owning. Table 2 Professional Background of the Participants Participant Answers Number Percentage of Total Previously Owned a Small Business Business Background 1 2 25.0% 50.0% No Business Background 1 25.0% The final data gained from the first interview question was that all but one participant, Participant 2, felt their background prepared them or somewhat prepared them for ownership of a small business (see Table 3). This is supported by the existing body of knowledge which indicates that the more experience the owner has, the longer the duration of the business will survive (Stafford et al., 2010). Zhang (2011) suggested previous experience with management or business ownership can influence the survival of a company. In contrast, Jalbert, Furumo, and Jalbert (2011) explained that there was little evidence to suggest that the owners’ background affects firm performance..

65 Table 3 Did their Background Prepare Them for Ownership of a Small Business? Participant Answers Number Percentage of total Yes 2 50.0% Somewhat No 1 1 25.0% 25.0% Emergent Theme 1: Seasonality The first theme to emerge was the importance of knowing, understanding, and preparing for the seasonality of their small business from interview question 2 and interview question 5 (see Table 4). All four of the participants mentioned preparing for seasonality as a strategy used for profitability. The emergent theme Preparing for Seasonality will be discussed in detail, including tables, following a discussion of the other three strategies used for profitability mentioned by the participants, (a) customer satisfaction, (b) cutting costs, and (c) focusing on a niche. Customer satisfaction. Half of the participants mentioned customer satisfaction and keeping the customers happy as another strategy used for profitability (Participant 1 & Participant 2). Making sure the customers, and mainly the regular customers feel welcome and making sure they come back is essential to remain profitable (Participant 1). A small firm’s owner has the advantage of being able to become close to customers (Anderson & Ullah, 2014). Participant 1 shared that she asks her customers what they would like her to sell, offering certain beverages, and having certain games and activities.

66 available for entertainment (Participant 1). Listening to consumer insights and responding to the customers’ needs is essential (Sinfield, Calder, McConnell, & Colson, 2012) is supported by the existing body of knowledge. One of the most important strategies is to keep the customers happy; if the customers are happy, word of mouth brings in more customers (Participant 2). Smaller firms are commonly regarded as able to have better customer service; it is considered as a principal means by which small firms retain customers (O'Donnell, 2011). Cutting costs. Half of the participants mentioned cutting cost as another strategy. Cutting costs during the low season can be achieved by decreasing employee hours, working shifts herself, and purchasing her own supplies at Costco (Participant 1). Participant 1 response aligned with the existing body of knowledge that common cost management strategies that are used when business sales decline, is to decrease employee’s hours and inventory purchases (Shields & Shelleman, 2013). Participant 2 indicated she cut costs by doing snow removal herself, purchasing supplies from thrift stores, doing her own maintenance, and working shifts herself (Participant 2). Small business owners are often confronted with a variety of tasks, it is a matter of where their available time is allocated (Patten & Patten, 2014). Participant 2 also explained that she printed her own cards and bought a mailing list to mail out cards and she posted on Craigslist to obtain employees. She stated she did everything she could that did not cost money, or little money, to make sure the business did well (Participant 2). Focusing on a niche. The final strategy used for profitability discovered was focusing on a niche, as mentioned by one of the participants (Participant 3). Finding a.

67 niche is important and contributes to profitability and success (Participant 3). This is supported by the existing body of knowledge which indicates small business owners can find great success in attacking niche markets; the majority of niche firms are often smaller organizations (Parnell, Lester, Zhang, & Mehmet, 2012). The junk removal company started as a company that only cleaned out houses that had hoarding problems, so in the beginning it was narrowing their client base as stated by Participant 3. Participant 3 further explained that providing that niche and focusing only on hoarding made them profitable because a lot people did not do what they did and eventually, the other jobs came, the junk removal, residential cleaning services, etc. (Participant 3). For most small businesses, focusing on a niche market and differentiating from competitors will lead to success (Parnell et al., 2012). Box (2011) also found identifying a market niche and differentiating options for services is appealing to customers, which is supported by the existing body of knowledge. Table 4 Strategies used for Profitability Participant Mentioned Number Percentage of total Cutting Cost 2 50.0% Focusing on a Niche Customer Satisfaction Preparing for Seasonality 1 2 4 25.0% 50.0% 100.0% Preparing for the seasonality of the business. Seasonality was mentioned by all.

68 four of the participants at different frequencies involving interview question 2 and interview question 5 (see Table 5). Through member checking the participants specified the causes of imbalanced sales linked with seasonality included (a) low temperatures, (b) snowfall, (c) holidays, and (d) the school year. The ups and downs that the participants were exposed to became clear after the monthly cash flows statements were examined (Company Documents 1, January 30, 2015; Company Documents 2, January 31, 2015; Company Documents 3, February 3, 2015; Company Documents 4, February 5, 2015). Three out of the four of the participant’s monthly cash flow statements showed negative in the winter season (Company Documents 2, January 31, 2015; Company Documents 3, February 3, 2015; Company Documents 4, February 5, 2015). The negative cash flow highlights the importance of the participants’ preparation and knowledge of the seasonality of their small business. Participant 2 stated that due to the winter holidays, Christmas and New Year’s, business is slow in the winter season (Participant 2). Participant 3 explained that during the winter months, with frigid temperature and snow, most people do not call on a junk removal service; they wait until the grounds are not covered in snow and the weather is warmer (Participant 3). The very low temperatures and heavy snowfall greatly affect business because people tend to stay home and want to avoid driving on the unsafe roads (Participant 4). Having and reviewing cash flow statements and profit and loss statements help every year in determining if there will be enough cash to cover expenses during a predictable low season (Participant 4). It is important to maximize your time during the low season by investing in marketing and planning for the high season (Participant 2)..

69 Participant 3 pointed out that it is key to be financially disciplined and not to spend too much money during the high season simply because more money is coming in at that time (Participant 3). Finally, Participant 1 explained the strategy of saving up during the peak season and remaining strict with expenses (Participant 1). In contrast, one participant stated that business during the holiday season; Christmas and New Years is the most profitable months for her bar and restaurant business (Participant 1). Table 5 Frequency of Seasons Mentioned Source Reference Percentage Participant 1, Interview Question 2 2 44.66% Participant 2, Interview Question 2 Participant 2, Interview Question 5 Participant 3, Interview Question 2 Participant 4, Interview Question 2 Participant 4, Interview Question 5 1 2 2 4 1 27.87% 9.62% 52.84% 28.14% 3.14% The interviews and company documents revealed the highest and least profitable months and seasons for each of the small business owners (see Table 6). The monthly cash flow data unveiled that for 75% of the small business owners, three out of four had the highest sales occur during the warm temperature months (Company Documents 2, January 31, 2015; Company Documents 3, February 3, 2015; Company Documents 4, February 5, 2015). And, for those with the highest sales in the warm temperature months,.

70 the lowest sales were in the cold temperature months, the winter season. In analyzing the monthly cash flow statements, only one small business, the Bar and Restaurant business made a profit in the winter season (Company Documents 1, January 30, 2015). The junk removal company and the construction company both had low sales during the winter season due to the low temperatures and snowfall (Company Documents 2, January 31, 2015; Company Documents 3, February 3, 2015; Company Documents 4, February 5, 2015). The daycare center showed low profit in the winter as well, but due to the winter holidays, customers not needing daycare services for their children because many parents were off work or had family in town to watch the children (Participant 2; Company Document 2, January 31, 2015). Each of the participants expressed knowledge about their highest and least profitable months in relation to the seasons in Colorado. Table 6 Highest and Least Profitable Seasons According to Cash Flow Documents Company Type Highest Least Bar and Restaurant Daycare Center Fall & Winter Spring & Fall Spring Summer & Winter Junk Removal Construction Summer & Fall Fall Winter Winter This study was built upon the general systems theory (von Bertalanffy, 1972). The emergent theme seasonality, was consistent with Schwartz and Chandler’s (2012) finding that knowing the seasonality factors is necessary to obtain an understanding of the.