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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The State of the Small Business in the U.S

April 15, 2015 by

business (5)We are past the point of expressing as a nation, any shock to the news that the United States is trailing behind other developed nations in terms of education. But, when one starts talking about business, we believed that we are a nation to be emulated and look up to what other developed nations should be doing, or trying to achieve.  It is with trepidation to find out that the United States now ranks 12th – Yes, you have read it correctly – among developed nations concerning business start up activity.  So, what is the government doing to fix this? Can they fix it? Or better yet, do they want to do anything about it? Follow the links below for more information about this and other topics.

Is the estate tax killing small farms and businesses?

“Here in South Dakota, we are land rich and cash poor, leaving roughly one-third of South Dakota farms vulnerable to the death tax, based on cropland values provided by the U.S. Department of Agriculture. The death tax imposes a tax rate as high as 40 percent on family farms, ranches and small businesses, which hurts economic growth by discouraging savings and development.”

–Sen. John Thune (R-S.D.), opinion article in the Rapid City Journal, April 13, 2015

“This tax doesn’t just hit the big guy. It hits the little guy—like the small business and the family farm. It is both unwise and unfair, and it needs to go.”

–Rep. Paul Ryan (R-Wis.), hearing at the House Ways & Means Committee, March 25, 2015

“I believe that the estate tax is politically misguided, morally unjustified and downright un-American. It undermines the life work and the life savings of farmers and small- and medium-sized businesses in Georgia and across the nation.”

Small business tax concerns with SHOP

Initially created with the goal of helping small businesses comply with the requirements of the Patient Protection and Affordable Care Act (PPACA), the Small Business Health Options Program (SHOP) has not been meeting expectations.

According to Don Donner, CEO and president of the National Federation of Independent Business (NFIB), “Almost no one is using the SHOP exchange, according to the government’s own enrollment data, and to the extent that there are subsidies available in the form of tax credits, they are complicated, temporary, and too small to offset the costs.”

A February 26, 2015, letter from Steve Chabot (R-Ohio), chair of the U.S. House of Representatives Committee on Small Business, to Sylvia Burwell, secretary of the U.S. Department of Health and Human Services, highlights these concerns, with a focus on problems associated with incorrect SHOP tax forms that were recently sent out by HHS.

Policy Points: How Tax Inversions Hurt Smaller Businesses

Everyone’s “favorite” day of the year is less than 24 hours away – Tax Day. And the big question is: Have you filed your return yet? (If you haven’t, stop reading this and go take care of that. This will still be here when you’re done.)

By now, most people have (hopefully, anyway) sent in their returns. Some have probably gotten a pretty decent refund; others might be a little disappointed at their bill.

One thing you can always count on come April 15 is some griping about how much Americans pay in taxes. Nobody likes paying them, after all. But as Oliver Wendell Holmes once wrote, “Taxes are the price we pay for a civilized society.” Everything people rely on the government for, from public safety to infrastructure, health care and education, is paid for with your tax dollars.

It’s easy for this to get lost in the mix – especially when you find out you owe more than you thought you would – but paying taxes is one of the most important things Americans do for their country. Name a program that matters to you, and your tax dollars — and those paid by businesses — help make it possible. What makes it work is that everyone recognizes the burden is not only on them: Everyone has taxes to pay, and everyone has to chip in for the services we all rely on.

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Constructive Praise is Important Too

April 7, 2015 by

54642287The art of giving constructive criticism is a well known management concept.  The skill of giving and receiving critical feedback is an important one for all managers to learn.  If handled appropriately, by the person giving it and the person receiving it, a critique can result in professional and personal growth for both of the people involved in the discussion.

There’s an equally important skill that’s rarely talked about and commonly misunderstood.  The ability to give productive praise is as important as the ability to give productive critical feedback.  But, unfortunately and erroneously, the knack of giving constructive praise is viewed as easier and more natural to do.  Therefore, many people believe it doesn’t need to be learned. 

They think – What’s there to learn, don’t you just tell someone they’re doing a good job and move on?  The answer is an emphatic “No”.  People rarely respond to and rarely learn anything from a generic “good job”.  To be useful meaningful praise should follow the same guidelines as meaningful criticism.

Be timely.  Highlight the here and now.  Focus your praise on specific behaviors which have happened very recently, ideally in the last day or two.   

Neal was confused when Sam, the owner of the company, said, “Thanks for your hard work”.  He thought Sam was being sarcastic because it was a very light work week.  When he realized it was 2 weeks ago (when the whole shop worked hard to fill a large order) that he was being thanked for Neal perceived the praise as being “a day late and a dollar short”.  The praise only strengthened Neal’s opinion that Sam was out of touch with the daily operations.

Focus on behaviors.  Specifically refer to what the person did or does.  Describe what you have seen and think about his behavior. Use “I” statements and focus on behaviors you want him to continue doing, which reinforces positive actions

Paul was diligently putting in long hours for a new a client.  His manager Jill stopped by his office and praised him for his work.  She specifically cited the weekend hours he was putting in and how satisfied she was with the quality of the work he was producing.  Paul was gratified to see that someone was paying attention and felt she “was interested” in his success.

Be specific.  Be ready and able to discuss the behaviors specifically.  Praise that’s too general is often seen as insincere or of little value.

Dawn’s boss Ed thanked her for her contribution to a presentation which helped secure a large contract.  She had used new techniques for the graphics and was eager to hear about the reaction to them.  She asked for specific feedback to gauge what might work for future presentations.  It quickly became clear Ed didn’t know what her contribution was and that he had paid little attention to the presentation.  Dawn saw his praise as “dishonest and worthless”.

When done correctly, constructive praise is often more effective in motivating people than constructive criticism.  Successful managers learn how to use both to improve relationships and productivity.  A few well-chosen, specific and timely words of praise have been known to make the difference between a good day and a bad day for many people. 

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The State of the U.S. Economy and other news

April 2, 2015 by

64002400Depending on whom you ask, the economy of the United States is a hot topic for any business owner, or analyst willing to delve into it.  For Ohio small business owners the health of the state’s economy is always an important part, and the changes that can affect their business are always a hot issue.  Tax changes, especially changes that affect them particularly are viewed carefully by them and are not always welcomed. For news about the state of the U.S economy, follow the links below.

Ohio’s major chambers of commerce rap John Kasich’s tax plan as divisive and bad for business

COLUMBUS, Ohio — In a letter to Gov. John Kasich, nine key chambers of commerce from around the state wrote that his tax reform proposals will shift tax burdens, cause friction and hurt businesses.

The chambers, while pledging to work with Kasich and legislative leaders in the future, said they don’t believe Kasich’s tax proposal will help to bolster Ohio’s economy.

“The proposed plan does not look to create greater efficiency within government in order to support tax cuts,” they wrote in their letter to Kasich and the leaders of the Ohio House and Senate. “Instead, this plan shifts the tax burden from one group to another, pitting different types and sizes of businesses and individuals seemingly against each other while government spending continues to grow.”

Has American Business Lost Its Mojo?

​Over the past three decades, the American economy has become less vigorous. An extensive body of evidence shows that the public focus on the success of high-tech companies like Apple and Google masks an overall downward trend in key measures of business vitality.

“Business deaths now exceed business births for the first time in the thirty-plus year history of our data,” note Ian Hathaway and Robert E. Litan, economists at the Brookings Institution, in a May 2014 essay, “Declining Business Dynamism in the United States.”

There is widespread support for their assertion. Jim Clifton, chairman and C.E.O. of Gallup, wrote in a January 2015 essay, “American Entrepreneurship: Dead or Alive?”:

Until 2008, start-ups outpaced business failures by about 100,000 a year. But in the past six years, that number has suddenly turned upside down. There has been an underground earthquake.

The Cleveland Flea: Why sellers are sold on it 

CLEVELAND, Ohio — The Cleveland Flea started two years ago with 40 businesses participating. On April 11, when the Flea starts its outdoor season, about 160 businesses will be selling. And Flea organizers say there’s a long wait list to join the party. I posed the following three questions to a handful of Flea vendors:

*How has participating in the Flea changed your business?

*What’s the best part of the Flea?

*What do you hope to see for the Flea in the future?

And here is what they said:

What they sell: Specialists in interior design, estate sales, antiques, mid-century modern, gifts and things

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The Legalization of Marijuana in Ohio and Other News

March 25, 2015 by

business (10)Legalization of Marijuana raises different views and opinions depending on whom you ask.  Some argue that the legalization of marijuana will boost the local economy by the tax revenue the state will collect.  The prohibition enforcement costs the state will save by legalizing marijuana are in the millions according to some research.  The incarcerations due to marijuana related charges cost the prisons $1 billion dollars a year.  The savings and tax revenue that legalization will save the state are in the billions, so what are the cons for this issue?

Follow the links below for more news happening around Ohio.

Petition Wants To Make Ohio The Fifth State To Legalize Marijuana

A group in Ohio wants the state to join Colorado, Washington, Oregon and Alaska in the legal recreational marijuana club, with a new petition to amend the state’s constitution.

The petition from ResponsibleOhio must collect 300,000 signatures before the amendment making marijuana legal medically and for recreational use could be put to a vote in November, reportsCNNMoney.

The group is made up of investors from several companies who want the state to allow residents 21 and older to possess up to an ounce of pot for personal use and allow doctors to prescribe marijuana for some medical conditions. Residents could also grow a limited amount of cannabis plants at home.

Pew study finds auto title loans as harmful as payday loans

CLEVELAND, Ohio — Title loans are just as toxic as their payday loan cousins, according to a new report from Pew Charitable Trusts.

“They fail to work as advertised. They’re overwhelmingly unaffordable,” said Nick Bourke, director of Pew’s small-dollar loans project.

Like payday loans, auto title loans are marked by triple-digit interest rates and balloon payments that make them hard to pay off.

The Pew study sheds light on auto title lending ahead of a field hearing Thursday in which the Consumer Financial Protection Bureau is expected to map out a rule that could cover not only payday lending but other high-cost small loans.

Ted Cruz: Small business are going out of business ‘in record numbers’

​Republican Sen. Ted Cruz became the first big-name politician to announce a 2016 presidential bid during an address at Liberty University in Lynchburg, Va.

Cruz, of Texas, asked the audience to “imagine” (a word he used 38 times) what he believed a conservative administration could accomplish.

“Think just how different the world would be. Imagine instead of economic stagnation, booming economic growth,” Cruz said. “Instead of small businesses going out of business in record numbers, imagine small businesses growing and prospering. Imagine young people coming out of school with four, five, six job offers.”

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Emphasize Your Strengths by Understanding Your Weaknesses

March 19, 2015 by

Our country was founded on many strong principles.  One of these principles is that we are a society of people who are self-sufficient.  Our national culture upholds and supports the idea that anyone can achieve success – all a person needs to do is pick themselves up by their bootstraps and get on with it.

This is a good concept, which has built, developed and invented wo64521313rld changing ideas, machines and technologies.  But, when taken too literally, it has also created failures, calamities and disasters.  The paradox of self-sufficiency is to know when you cannot and should not depend only on yourself, to understand when you should ask for help. 

One of the characteristics of highly independent and successful people is the ability to identify the proper time to get help.  The “secret” to being constructively independent, rather than destructively, is to understand your knowledge gaps and then seek out assistance to fill them.  It is not important to know the answers to all the questions, it is important to know where and how to find the people who know the answers.

In our culture’s bootstrap mentality there is a false belief that gaps in knowledge, skill or understanding equal weakness and that this weakness is a character flaw or a moral failing.  Unfortunately, because of this, for thousands of years people have been unsuccessful because – often due to pride, ignorance, ego or misguided notions of independence – they did not get help for these gaps.

Everyone has strengths and weaknesses; it is part of being human to be good at some things, average at most and poor at others.  You can learn to make one of your strengths the ability to recognize your weaknesses or gaps.  Once they are identified, you can ask for help to change or minimize them.  Truly self-reliant people understand their success is enhanced by other’s knowledge and that they can “…stand on the shoulders of giants.”(Sir Isaac Newton).

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Ohio Small Business Tax Cuts

March 11, 2015 by

64002400Many small businesses across the country relish the idea of tax savings for personal and business matters.  When Gov. Kasich talks about a $696 million tax cut for small businesses, we believe that it will amount to something substantial for our business, when in reality the tax cuts are meager to say the least.  The Ohio Department of Taxation believes that each eligible business would save an approximate $935 a year.  That is hardly conductive to more hiring and giving a boost to the economy as proposed by the current Ohio administration.

Follow the links below for more information about this and other news.

Report: Ohio consumers are at a high risk of ID theft

The National Consumers League has issued a report that analyzes new Federal Trade Commission data that indicates Ohio remains a hotspot in the national fraud epidemic and that Ohio consumers are at a high risk of ID theft.

Ohio was ranked the 20th highest-ranked state in per-capita identity theft complaints to the FTC in 2014. Government benefits, credit card and utilities fraud accounted for most of the 9,161 identity theft complains received in Ohio. Fifty-four percent of Ohio residents who filed complaints reported a loss. The average amount reported paid was $1,428. he Cleveland-Elyria metropolitan area ranked in the top fifty nationally in per-capita identity theft complaint rates.

AT&T continues Ohio job growth, hits milestone

AT&T is continuing its Ohio job growth with the latest round of hiring for call center workers as it surpasses a hiring milestone.

The latest 120 new jobs in the state, including some in Dayton, are pushing the telecommunication giant’s total job growth in Ohio to more than 1,700 in the past two years.

Positions filled in the past two years included IT/engineering, retail, technician, call center, business solutions, and corporate support categories.

AT&T says the hiring reflects its continuing investment in its Ohio network and team. The company made more than 830 upgrades to its wireless network in Ohio in 2014, including the launch of service for former Alltel subscribers in more than 20 northern Ohio counties. The integration of former Alltel towers into the upgraded network increased AT&T’s cell towers in these areas of Ohio by nearly 40 percent.

Most small businesses would see limited savings from John Kasich’s tax cut plan
COLUMBUS, Ohio — More than 90 percent of the roughly 1 million businesses eligible for Gov. John Kasich’s proposed small-business tax cut would save less than $364 per year, according to state statistics.
Kasich and administration officials say his proposal to stop collecting state income tax from small businesses will create jobs and give the state’s economy a boost. But critics say that most of the businesses that would benefit from the change are too small, and the savings too meager, for them to make new hires.

The $696 million tax cut, laid out last week in the governor’s state budget plan, would apply to Ohio business owners who report yearly gross receipts of $2 million or less on their individual tax returns. That includes limited liability companies, S corporations, sole proprietorships, and partnerships.

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Small Business News

March 3, 2015 by

59948705At the beginning of starting a new venture, an entrepreneur or small business owner forgoes many of the financially crippling costs of starting the new business, sometimes with disastrous consequences. Hiring an accountant or a small business coach may seem financially impossible in the beginning, but as you travel the business road ahead you realize how important having the right people helping you is for your business.

Follow more business news below.

Ohio repeats as No. 2 in ‘Site Selection’ rankings 

Ohio came in second in the country in Site Selection magazine’s annual economic-development rankings. Ohio cities big and small also fared well in the rankings released yesterday.

Site Selection magazine Governor’s Cup Competition issues rankings based on economic-development projects per capita and total projects.

Ohio repeated its 2013 performance by coming in second in both competitions among the states.

Corporate tax reform will hurt small business, unless 

Corporate tax reform will pose a big problem for America’s small businesses unless Congress tackles the ‘pass-through’ problem. By letting firms deduct dividends distributions, lawmakers could erase many of the tax complications business owners currently face.

Tax reformers agree the United States needs a more competitive corporate tax system. To be competitive the 35 percent corporate tax rate must come down. But the trade-off for a lower corporate tax rate – the elimination or reduction of deductions and credits – will cause big problems for America’s small businesses.

Their taxes will go up with no offsetting reduction in their individual tax rate.

That’s because most small businesses – and 94 percent of all US businesses – organize themselves as pass-through entities. Sole proprietorships, S corporations, partnerships, and limited liability corporations taxed as partnerships are called pass-through businesses because their profits, gains, deductions, and credits are not taxed at the corporate level and instead pass through to the owners’ individual tax returns. This makes the owners’ returns mind-numbingly complex, but they put up with it because it’s cheaper than paying corporate tax.

The Essential Small Business Resource Is Already Working for You

As a small business owner, you’re probably paying a monthly fee for a bookkeeper, accountant or a CPA. Most likely, you’re turning to these professionals for standard tax, bookkeeping and auditing services only, but your accountant is probably knows your financials as well as you, if not better. Your accountant can be your partner to build a solid financial strategy.

Here’s what to look for in an accountant to get the most out of the relationship:

A trusted advisor.

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News About The Obama Health Care Plan

August 5, 2013 by

business (3)October is sure to be a month lots of people are waiting for. October First is the first day you can enroll on the Obama health care plan, although it doesn’t start till January 1st. next year. I believe there are lots of people skeptical, and some right out angry about the Obama Health plan. Don’t you want to find out about it before we start voicing our opinions and getting angry beforehand? Don’t you want to have an alternative to the health care plan you have, or the lack there of?

Here are the latest news about The Obama Health Care plan, and some other news of interest.

Ohio won’t promote Obama health plan, so advocates, politicians say they will

CLEVELAND, Ohio — Oregon is making music videos and Kentucky is showing up at bourbon festivals to advertise a new way for individuals to get health insurance next year.

Ohio is purposely sitting on its hands.

Ohio’s Department of Insurance has planned no marketing, advertising or outreach to promote the Affordable Care Act, even though enrollment begins in less than two months. Consumers nonetheless can expect to hear plenty about it — the good, the bad and, especially, the political — in coming weeks.

Ohio officials: Rates to increase

Ohio could end up with a highly competitive health insurance exchange program, but regulators say the cost of the coverage sold could be expensive.

State regulators turned in paperwork on Patient Protection and Affordable Care Act (PPACA) exchange plans Wednesday.

The U.S. Department of Health and Human Services (HHS) will be running a “federally facilitated exchange” (FFE) program in Ohio.

The individual exchange attracted applications from 12 insurers, and the state’s Small Business Health Options Program exchange attracted applications from six insurers.

Loan funds available for small businesses in southeastern Ohio from Marietta based group

MARIETTA — Buckeye Hills Resource Conservation & Development continues to see signs that the economy is moving in a positive direction, and a number of people in southeast Ohio are thinking of either expanding an existing business or starting a small business operation.

Some banks are reluctant to take risk on start-up businesses, the RC&D said. A revolving loan fund is one option small business owners can use to build and expand their business, and also build a financial and credit history.

The Buckeye Hills RC&D Council has funds available for small businesses in the nine-county region of the RC&D. Counties eligible for participation include Athens, Belmont, Hocking, Meigs, Monroe, Morgan, Noble, Perry and Washington. The RC&D is a regional non-profit organization focused on rural community development, natural resources protection, and enhancing the quality of life in southeast Ohio.

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