Cloud accounting supported move to e-commerce in wake of pandemic
Entrepreneurs April Brown (left) and Sarah Sklash transformed a once-dingy motel into beautiful boutique motel The June in Ontario’s Prince Edward County. Lauren Miller
In spring 2020, entrepreneurs Sarah Sklash and April Brown were preparing for the seasonal opening of The June boutique motel in Prince Edward County in Ontario’s wine region. Just four years earlier, the two friends had quit their full-time jobs to pursue their vision of “re-imagining the experience of staying at a motel.”
They bought a “dingy roadside motel” and transformed it into “a beautiful space with creative design,” augmented by unique services and local experiences for guests. Their model was so successful that they were ready to expand to another Ontario location; The June Sauble Beach was set to open for the first time that season.
It all came to a halt with the provincewide lockdowns due to the COVID-19 pandemic.
Bringing digital innovation to a ‘brick-and-mortar’ business
Many businesses with closed physical locations adapted by augmenting online services; consider restaurants pivoting to take-out. But how do you duplicate a motel stay in the digital environment? Ms. Sklash and Ms. Brown got creative.
“We often had people seeing pictures of our spaces and saying, ‘I love the wallpaper. Where can I buy it?’” says Ms. Sklash. “Selling our design products was something we saw as a future option, and the pandemic helped energize us. This was the time to do it.”
So the co-founders decided to bring some of The June to people in their homes via an online shop and began selling wallpaper, decor items, wine and more. “The revenues are small in comparison to the motel, but it gave us a purpose and provided work for some of our staff during the shutdown,” adds Ms. Sklash. “Here was another way to keep revenue coming in.”
Young entrepreneurs like Ms. Sklash and Ms. Brown are comfortable with the digital environment, and they and their accountants at Hawkins & Co. were already working with cloud-based accounting platform Xero. According to Ms. Sklash, the platform allowed them to easily merge their new online revenue stream with their overall accounting records.
“
Cloud accounting was what we truly needed as our business grew. With several revenue sources and adding the second motel, everything was becoming more complex. ”
“Cloud accounting was what we truly needed as our business grew. With several revenue sources and adding the second motel, everything was becoming more complex,” she says. “Having fully integrated accounting systems and automation of so many functions frees us up to focus on the guest experience and growing our business.”
Xero also helped as they applied for government grants, loans and subsidies during lockdown, says Ms. Sklash. “Each application required information to be presented a bit differently. Using Xero for quick access to all that data I needed to apply for support has been so important in this past year.”
The June owners represent the new wave of entrepreneur, says Faye Pang, Canada country manager for Xero. Xero conducted a survey of Canadian small businesses this year and found adaptability and digital innovation most common among owners in the younger generations.
“The June owners recognized this is not just a motel; it’s a hospitality brand. They understood they can carry that brand into e-commerce and serve their customers differently.”
For more stories from this feature, visit globeandmail.com