Some People Get All the Luck – Be One of Them

June 5, 2015 by

64002400There are thousands of legends about businesses becoming successful because the owner was in the right place at the right time, he was lucky.  But, if you look closely at them you’ll find, that while “uncontrollable” good fortune may have played a part in the success, that isn’t the whole story.  The real story is how the owner made his own “controllable” luck.

Many mangers think good fortune is uncontrollable (such as winning a bid or having good weather for the company picnic) and they either have it or they don’t.  But, you can increase your chances of being lucky.  Often, what’s perceived as, uncontrollable events can be managed to increase the odds of working out in your favor. 

For example, anyone who has bid out a job has multiple stories about companies (who they wanted to award the contract to) who’ve knocked themselves out of the running.  They weren’t unlucky — their bids were incomplete, sloppy, late or unrealistic, all things they had control over.  Also, in northeastern Ohio there’s a better chance of having good weather for your picnic in June, not April. 

If you look closely at most “his successful business is due to luck” stories you’ll find they usually have 4 things in common.  One of them is that there is a dose of luck involved.  But, the other 3 are more important.  Each story shows a person augmenting his good fortune through controllable behaviors, which you can also do.

Pay attention – Put down the cell phone, step away from the computer and get out of your office, building and comfort zone.  The beginning of any successful venture is to recognize that the opportunity is there.  There are few things more important in life (work, family and friends) than paying genuine attention to what’s going on around you.

Do the work – After you get the idea take logical and practical risks to do something about it.  Ideas are usually worthless until they’re put into action through a lot of hard work.  In every success story there’s always someone, sometimes many people, who did the work.  As Thomas Jefferson said, “I’m a great believer in luck, I find the harder I work the more I have of it”.

Seek out information – The average small business owner gets insulated, which leads to tunnel vision.  Success isn’t a solo act; every business success story has multiple characters in it.  Steve Jobs was brilliant, hard working and lucky.  One of the things he learned to do was to seek out and listen to what people had to say, and then use the information to better his product.  He was relentless in his quest to learn more and do better.

There are some things you can’t do anything about – you’re betting on 3 of a kind and your opponent wins with her straight.  But, you can increase the chances of winning by knowing your rival’s tells (pay attention), learn the odds, rules and psychology of the game (do the work) and continue to develop your skills (seek out information).  Luck is a combination of controllable and uncontrollable actions and events. 

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Small Changes You Need To Do To Help Your Business

June 4, 2015 by

Having a website nowadays is not longer enough.  If your website is not optimized for mobile devices, you are loosin54640451g sales.  But before you spend the time and money optimizing your website for mobile devices, make sure it is good enough for desktops before spending the money elsewhere. Ask yourself these questions: Does my website load in less than 2 seconds? If the answer is no, you need to fix that before going any further.  Research has shown that if a website takes longer than two minutes to load , more than half of  your visitors leave without ever seeing if you have what they wanted. Is the content relevant? Good content can engage you potential customer and offer basic information they may need.   To read more about this and other topics follow the links below.

5 Things Your Small Business Should Do This Summer

Summer is almost here! While a vacation is definitely recommended, don’t spend the whole summer relaxing.

Here are five things your small business should definitely do this summer:

1. Get a Mobile Website

Look around when you’re walking down the street. Almost every person is attached to a smartphone. About 40 percent of consumers prefer to use their phone to search for businesses and services on the internet. Is your website mobile-optimized? If not, why not? Make it easier for potential customers to find you. Mobile-optimize your website.

6 Small Business Tips from a Pet Mediator

Big businesses, like Walmart and Apple, seem to just roll along on the momentum of their success and power.

However, small businesses don’t have that luxury. You fight for every little success and every advantage to get ahead of the competition. Some small businesses are so small, most people have never heard of them before.

For example, have you heard of a pet mediator?

Debra Hamilton, Pet Mediator

Pet mediator. What will we come up with next?

What The Small Business Tax Break Actually Does

The immediate tax deduction for small business announced in the Federal Budget has been broadly welcomed, but what may have been missed is the fact that what the Government doesn’t collect now, it will collect later.

As part of the $5.5 billion small business package at the centre of its latest Budget, the Federal Government announced it would allow businesses with turnover less than $2 million to immediately deduct the cost of any individual asset purchased up to the value of $20,000, from Budget night through to the end of June 2017. The estimated cost of this accelerated depreciation measure to revenue is estimated at $1.75 billion over the four years of forward estimates.

But what should be noted about this measure is that it doesn’t change the eligibility for tax deductions of these assets; it simply changes how quickly a small business is able to receive the tax deduction.

Under the existing simplified depreciation rules for small business, an asset costing over $1000 would be depreciated at 15% for the first year, and 30% thereafter, until the taxable value of the asset pool is $1000 or less, at which point the full amount can be written off.

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Small Business Money Issues

May 28, 2015 by

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From retirement funding  to meeting payroll every month, small businesses are plagued in a continual basis with issues about money.  Legislation in Washington  can be helpful or devastating to the small business community, and in some instances small business owners find themselves with the same problems regardless of what happens in Washington.  Does your business need a loan? Do you need money to fund a retirement account for you?  Follow the links below for more news about this and other issues affecting your business.

Loans, taxes, regulations on small-business election agenda

There are no “one size fits all” issues for small business in the 2016 presidential campaign. While candidates try to appeal to all small businesses, many owners want very specific things. A sample of what’s on the agenda of some individual owners and two small business advocacy groups:

Help small banks compete: Community banks whose customers include small businesses are at a disadvantage because of regulations under the Dodd-Frank Act implemented following the 2008 banking crisis, says Jim Angleton, owner of Aegis FinServ, a Miami-based financial services company. While the law is needed to prevent a recurrence of the practices that led to bank failures of all sizes, it places a disproportionate financial burden on smaller banks, Angleton says.

The number of small banks in the U.S. dropped 14 percent after Dodd-Frank was enacted in 2010, according to researchers at George Mason University.

5 Creative Ways To Fund Your Small Business

A look at the fast-evolving options for entrepreneurs on a money hunt—including several that first-time entrepreneurs tend to overlook.

When Mike Shapiro quit his job as a corporate lawyer to launch a group of community news web sites in 2008, he relied on savings he’d frugally socked away for years. “I wasn’t an Armani suit guy at my firm,” says Shapiro, CEO and publisher of TAPInto.net, a five-employee franchise chain, based in New Providence, N.J., that now has 37 locations.

But self-funding the business turned out to be stressful. During the first two and a half years, he poured about $250,000 into his startup, taking no salary while he and his family lived on their savings. And as he was launching the business, his son, then an infant, had to have open heart surgery, and his wife stayed home to care for the baby.

Small Business — and State Governments — May Rescue Your Retirement

NEW YORK (TheStreet) — Half of Americans employed in the private sector work for small businesses. That means many workers simply don’t have access to retirement plans. Big firms lure talent with tax-advantaged savings plans like 401(k)s — and even match workers’ contributions, while neighborhood businesses often lack the means to provide such benefits.

But now, the small-business backbone of the economy is slowly rising to the occasion, often with the assistance of state governments.

Here’s one such example from the state of Washington: The Small Business Retirement Marketplace, signed into law last week by Washington Governor Jay Inslee, will provide an estimated 1.5 million residents in the state with access toworkplace-based retirement accounts.

“Employers do not have to do anything but deduct and forward the money — the same way they handle taxes,” said Rep. Larry Springer, a co-sponsor of the state legislation, in a press statement. “We know people are very unlikely to save for retirement if they are not offered a plan through work. The Small Business Retirement Savings Marketplace will allow more workers access to a safe, easy and affordable way to retire in dignity.”

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Starting a Business in Northeast Ohio? Check the Best Cities for Business

May 19, 2015 by

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More than half the population of the United States work for a small business, and  a small business per the SBA is a business with less than 500 employees.  The news about the economy seems to pull small business owners in two directions. Those optimistic and ready to hire new employees, or the cautious one that are still waiting to see how the economy is really working out.  Which small business owner are you?  Follow the links below for more news about the economy.

The Best Places to Start a Business in Ohio

Throughout the late 19th and early 20th centuries, Ohio occupied the center of America’s industrial heart. The burgeoning United States economy couldn’t get enough of the region’s cars and steel, and in turn, Ohio and other states provided a virtually endless stream of jobs in its workshops and factories.

In the second half of the 20th century, however, the region fell into decline, as manufacturing output required less labor input, and companies left the Great Lakes states for the warmer climes of the Sun Belt. The entire region was categorized economically dead as factories closed and traditionally middle-class manufacturing jobs disappeared.

But what really happened wasn’t quite that simple. Although it’s true the number of manufacturing jobs has declined, Ohio remains one of the country’s most productive states. Photos of rusted, abandoned factories paint a dire picture, but companies and communities adjusted, and the Ohio economy proved to be more resilient and dynamic than portrayed.

Ohio small businesses feeling better about economy

Ohio small-business owners are feeling better about the economy, both locally and nationally, according to a U.S. Bank survey released Monday.

The growing confidence, however, isn’t translating into significant hiring or big investments by owners.

The U.S. Bank survey, the sixth that the Minneapolis-based bank has done, found that 72 percent of the 200 Ohio small- business owners surveyed describe their business as good, very good or excellent, the best in five years.

Still, 23 percent of those surveyed believe the national economy remains in a recession. That’s down from 35 percent in 2014 and 45 percent in 2013.

Small-business owners aren’t the only ones who have been cautious since the recession, said George Mokrzan, Huntington Bancshares economist. Consumers also have been holding back on retail sales and buying homes.

Small business owners bullish on economy, ready to hire workers

Small-business owners in Central Ohio and throughout the state are growing more optimistic about their own financials along with the health of the national economy, according to separate surveys from U.S. Bank and the Entrepreneurs’ Organizations.

Three-quarters of Columbus-area companies surveyed by the EO trade group expect profits to increase over the next six months, up from 67 percent in its semiannual survey released last October.

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Expansion Loans – What to do Before Going to the Bank

May 18, 2015 by

59350241Successful small businesses owners occasionally need additional working capital.  The company is stable and profitable, but the cash flow is unable to support a large expenditure for growth (i.e. additional square footage, new employees, needed equipment, adding a product line).  In these situations traditional banks are still the provider of choice for most small companies.

However, due to new regulations resulting from the Great Recession, owners are finding it difficult to get the money they need.  Even if they’re veterans of the old system and were able to secure financing in the past, they’re finding the old rules don’t apply anymore and are having trouble getting financing now.  And rookies are quickly becoming confused and frustrated by the loan process.

So, what do you do?  Planning, patience and follow through are the keys to getting an expansion loan — three things that most small business owners are not very good at.  But, the banks have the money you need and you have to follow their rules to get it. Here are 3 things to do that will help.

Do the planning – Before you fill out the paperwork and submit it to the bank you must to do your homework.  Talk to someone at the bank and get an idea of what’s required for a successful loan application.  Do you have a good credit score and a large enough customer base?  Do you know what your debt-to-income ratio is? 

In the loan process your good intentions don’t count — banks aren’t interested in your open-ended visions and imprecise ideas.  This is strictly a tangible numbers game.  They’re interested in how the changes you’re proposing are going to create a profit, which will repay them with interest.

Have patience – Based on the planning you’ve done you now know what’s required to submit a successful loan application.  However, after the planning stage you may be unable to submit it right away.  You might need to pay down some debt, increase your credit score, clean up your existing credit line, or implement a new sales strategy. 

Patience, time and sticking to a comprehensive plan is often the intermediate step for many businesses.  They find that their financial house has to be put in order before they can successfully get a loan.

Follow their procedures – It’s baffling to lawyers, accountants and bankers how often small business owners are their own worst enemies.  They consistently make the loan process much more difficult than it needs to be and sabotage themselves. 

The average owner started their business so they could do things their way and not have someone else tell them what to do.  Unfortunately, this doesn’t work with banks.  It’s simple, but not easy, to learn to speak the bank’s language, find out what they want and give it to them.

Many successful businesses have failed because of poorly conceptualized and implemented expansions; experienced business bankers have seen it too many times.  Although, at times, it may not seem like it, responsible owners and bankers want the same thing.  They both want a successful, profitable business, which will strengthen the community. 

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Small Business News

May 14, 2015 by

62227730To start a business, regardless of where you live, you have to considered the many advantages a particular state or city has on the success of your business. Paperwork and taxes are too cumbersome for many small business owners to consider, so the less they have to deal with those issues the better. The attraction of many cities for the small business owner is the possibility to finding funding, less taxes and paperwork.

To read more about this topic follow the links below.

Small-Business Owners Gained Confidence in April

WASHINGTON — Small-business owners in the United States gained confidence in April and were surprisingly bullish about capital expenditure plans, further supporting views that economic growth is rebounding after a dismal first quarter.

The Labor Department also reported on Tuesday that job openings fell in March. The National Federation of Independent Business said on Tuesday that its Small Business Optimism Index rose 1.7 points to 96.9 last month. It was the largest gain since December.

Small businesses historically have accounted for half of private gross domestic product. The economy is clawing back after being hit by a mix of bad weather, disruptions at ports, a strong dollar and deep spending cuts by energy companies.Data on employment and consumer sentiment have suggested a pickup in growth momentum at the start of the second quarter, but the dollar and lower oil prices continue to weigh on manufacturing.

San Francisco Chamber CEO Applauds Small-Business Rebels

Small businesses take center stage in San Francisco next week, with an emphasis on disruptive technology and businesses that have butted heads with the status quo.

Uber and Airbnb sprang up in this city, beginning as startups testing new, even quirky business models. They quickly transformed into global companies.

Chamber of Commerce President Bob Linscheid says there are lessons to be learned from businesses — startups or established companies — that challenge the norm.

“That lesson is that you must constantly innovate,” he says. “Our city is a haven for innovation and entrepreneurship.”

The Best And Worst Cities For Small Business Employees

Last month, Forbes reported on the best cities for starting a business this year, and much attention is frequently given to the locations working the hardest to attract founders who’ll create coveted jobs. But which cities are the most hospitable to those who hold those positions?

To determine the best and worst cities for small business employees, personal finance site WalletHub looked at 100 of the country’s largest metro areas, evaluating each against 11 metrics that examine the small business climate as well as the larger economic environment.

As a means of measuring the health of the small business scene in each city, WalletHub considered the number of business with less than 250 employees per every 1,000 residents, small business job growth, diversity of industries, percentage of small businesses offering health insurance to employees and employee earnings adjusted for cost of living.

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How to Market For Small Businesses

May 8, 2015 by

business (11)Having a business is for many people a dream.  Some reach for it and achieved their goals, while others are left behind wondering if it is still a possibility.  The optimism many small business owners experience can be dampened by the state of the country’s economy.  If consumers are not spending what it is projected, in all likelihood, small business owners will not expand their business, nor hire new employees, affecting the local economies and the country as a whole. Some of the questions small business owners ask is; how do I reach more customers? Is that even  something I can do by myself? Is marketing the answer to my problems?  You can read more about some of these questions and answers by following the links below.

3 Things You Need to Know About National Small Business Week

Running your own business can mean a lot of time on your own, in the trenches, building your company brick by brick, pushing the gears forward inch by inch. Next week, however, there are many opportunities for entrepreneurs to step back from the daily grind, connect with one another and be inspired.

That’s because the week of May 4 through May 8 is National Small Business Week (NSBW).

Organized by the Small Business Administration, this is the 52nd year in a row that the president of the United States has declared one week per year the official celebration of the Main Street entrepreneur.

“National Small Business Week is a chance to honor our nation’s 28 million small businesses and renew our commitment to fostering the entrepreneurial spirit that is central to the American experience,” says SBA Administrator Maria Contreras-Sweet, the head of the U.S. Small Business Administration, in a statement.

How to reach your small business customers

You’ve got a killer idea for your small business. You’ve created a great new product or service, set up operations, raised sufficient money to get out of the gate. But where are the customers? It’s time to pay attention to marketing.

During Small Business Week, I’m devoted to helping you “Make This Your Year to Grow.” Whatever industry you’re in, whatever the price or quality of your offerings, you need well-conceived, and consistently executed, marketing to grow your business.

The marketing message

Before you begin marketing, first clarify your company’s core message. That’s what you want customers to remember about you. It might even express a bit of your company’s personality.

Marketing vehicles

Marketing guru Peter Shankman says effective advertising is all about knowing your specific customers and tailoring your activities to their desires.

Ohio AG warns of scams targeting small businesses

COLUMBUS — Ohio Attorney General Mike DeWine warned small businesses to watch for signs of a scam, including callers who claim the business’s power will be shut off and invoices for products the business never ordered.

The warning comes during National Small Business Week.

In the past year, the Ohio Attorney General’s Office has received more than 150 complaints about potential scams affecting businesses, with an average payment amount of about $2,000.

“Small businesses work incredibly hard to keep their operations running, and they can be hit hard by scams,” DeWine said. “We don’t want business owners to lose valuable time or money to con artists, so we are encouraging them to learn about common scams and to talk to their employees about the warning signs.”

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Information Silos Are a Small Business Problem Too

May 4, 2015 by

64735957The problem of insular management in businesses, governments and organizations has been around for millenniums.  It began when the first chiefs (managers) became responsible for the safety and well being of their tribe (workers).   Julius Caesar, 2,000 years ago, conquered a large portion of Europe by aggressively minimizing or eliminating insular management in his army.

In large and small companies the problem of insular management is just as relevant and troublesome today as it was then.  However, many small business owners believe that only big companies have difficulties with it.  They erroneously think it is a function of size – that while a larger company may struggle with it their smaller business is exempt.

But, it is an issue which can be present in almost any size of entity (i.e. big governments, small businesses, teams, committees, families).  Insular management is the cause and effect when there is a systemic communication, operational and management breakdown.  This breakdown creates and is the result of information silos, think of the classic snake eating its own tail metaphor.

The concept of information silos is a simple one.  Silos are created when information is not readily shared and fundamental responsibility is abdicated.  In other words, one hand does not know what the other hand is doing, nor do they take responsibility for their actions.  This is a problem which can only be managed, not fixed, because it is caused by basic human nature. 

People, consciously and unconsciously, typically do not readily share information with their co-workers or bosses.  There are a variety of reasons for why they do not.  They also, routinely, do not take responsibility for their behaviors, decisions or job duties.  To the point where it seems, to some managers, that people who are self-motivated to do their jobs responsibly are the exception not the rule.

Therefore, to minimize, eradicate, or stop silos from forming a capable owner will understand human behavior and be willing to manage it.  Unfortunately, many are not willing to learn and are as culpable as their employees in creating and maintaining information silos.  Consequently, whether it is the tragedy of the General Motors ignition switch problem or a machine shop foreman shipping defective parts, they will continue to affect businesses of all sizes. 

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How To Avoid Business Mistakes

April 30, 2015 by

business (2)Retirement plans for the small business owner is probably one of the most important issues they face every year. Retirement accounts are  not something small business owners offer their employees, but even for themselves is not something that is widespread nor considered at all. Hiring an outside firm to oversee those financial aspects for the business is costly, and many small businesses cannot afford such an expense. Does your business need a loan? Are you making too many mistakes in your business and don’t know what to do? Do you need to set up a retirement account and don’t have any information?Follow the links below for more information about these topics.

Why online lending will take off with small business owners

At a minimum, banks are perfect partners in the new game.

Earlier this month, the momentum behind the online lending industry was in full view at LendIt—an industry gathering that didn’t exist four years ago, but grew from about 700 attendees last year to more than 2,500 this year. What was clear is that it’s no longer a question of whether these disruptors will change the game in small business lending, but how quickly.

In fact, in his remarks at LendIt attendees in New York City, former Treasury Secretary Larry Summers predicted that online lenders could eventually capture upwards of 70% of the small business lending market. That may be an overly optimistic prediction, but one thing is clear online lending is a welcome innovation in the small business sector.

Small Business Retirement Plans in the Hands of Lobbyists

 Financial advisers will be lobbying Congress this week on 401(k) plans for employees of small businesses.

The 401(k) accounts many rely on now are complex, require an outside administrator, and as a result are not cost-effective for some small businesses to set up for their workers.

Tom Iorio, an Edward Jones financial adviser in Rantoul, Ill., says they’re lobbying for a program for small companies.

“There are several bills out there in Congress that are trying to incentive small businesses to more easily get into what we think of as the traditional 401(k) market, like a small 401(k) or a ‘simple 401(k)’ is really the term that they’re using,” he says.

In a 401(k) program, employees may make tax-free contributions and select their investments within a plan that is administered on behalf of the employer. Employers also can contribute to employees’ accounts.

Avoiding Small Business Blunders

Entrepreneur Reva Minkoff aims to stop small businesses from making the same mistakes over and over.

Common mistakes account for too many small businesses wasting an average of 25 percent of their pay-per-click advertising budget each month. After identifying the same basic mistakes in 95 percent of the accounts she consulted on, Reva Minkoff started the award winning-website DigitalGroundUp in the summer of 2012 to train small business advertisers and over 300 students in successful digital marketing through short, hands-on online courses.

The company has since collaborated with major companies such as Facebook, while Minkoff herself wasinvited to the White House to live tweet the arrival ceremony of new British Prime Minister David Cameron. I recently interviewed Minkoff by email.

What are the worst mistakes small businesses make in advertising?

Not tracking their results. It drives me nuts when companies don’t know what’s happening on their website, what the results of their marketing are and how both are factoring into their bottom line. If they’re spending money on something, they should know what they’re getting out of it, and if they don’t, their agencies and developers should be working with them to help get them that information.

What are the most common pieces of advice you give students?

I remind students to focus on the overall concepts and not the interfaces. The fundamental digital marketing concepts haven’t changed from day one. As long as students understand them, they’ll be able to adjust to any other changes that may come their way and make the right decisions when faced with a new concept.

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Minority Owned Businesses and Gov. Kasich’s Budget

April 23, 2015 by

54642287Minority owned businesses have increased over recent years, and the US government knows the important growth these businesses provide to their local economies, and the nation’s economy  overall.  The increased in minority owned businesses have more than double compared to those of non-minorities nationally, and the City of Cincinnati, Ohio is now looking into promoting the inclusion of minority owned businesses for the State.  To read more about this and other topics follow the links below.

Ohio House Markedly Improves On Gov. Kasich’s Budget Plan

Last week, Ohio House leadership introduced a substitute bill to Governor Kasich’s proposed budget that would make many notable improvements to the tax plan. This is good news, because the proposed tax plan that came from the Kasich administration was deeply in conflict with itself.

The central element of the governor’s proposal was to reduce the individual income tax, which Kasich argues has “sucked the vitality out of this state.” The internal conflict, however, came from the revenue offsets the governor chose, which would have placed greater hindrances on, well, economic vitality. When first details emerged, I wrote on Forbes that the governor’s plan may be a tax cut overall, but that doesn’t make it good policy.

The governor’s proposed hikes included an increase in the state’s unique Commercial Activity Tax (arguably the most distortive tax in Ohio’s code), a hike to cigarette taxes, new taxes on electronic vapor cigarettes, hikes in the severance tax, and a hike to the sales tax. When done correctly, tax swaps can reduce highly harmful taxes while offsetting revenue losses by leaning on less distortive taxes. The Kasich proposal, by contrast, leaned on economically distortive, nontransparent taxes to make the ledger balance.

Here’s how Cincinnati is pushing for minority-business inclusion (Video)

Sorry, small business: Middle-market companies create most net new jobs

Companies with revenue between $10 million and $1 billion created 2.1 million out of the net 2.3 million new jobs added over the past seven years, according to an American Express/Dun & Bradstreet analysis.

Maybe it’s time for politicians to drop their rhetoric about small businesses creating most of America’s new jobs — since 2008, it’s actually been middle-market companies that have driven job growth.

That’s according to a new analysis from American Express and Dun & Bradstreet. It found that middle-market companies — businesses with revenue between $10 million and $1 billion — created 2.1 million of the 2.3 million net new jobs added over the past seven years.

Middle-market companies “have been the unsung heroes of employment growth,” said Susan Sobbott, president of global corporate payments for American Express.

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