Today In Small Business

September 19, 2013 by

business (3)As the time approaches for the Obama Affordable Care Act to come into effect companies and small business are finding ways to sidestep the health care laws and make it work for their small business.

Read this and other interesting topics by clicking the links below.

Today in Small Business: The Business Lessons of Walter White

What’s affecting me, my clients and other small-business owners today.

The Economy

  • The Fed continues its stimulus and companies from Apple to Verizon Communications are saving about $700 billion in interest payments.
  • The Congressional Budget Office says that deficits are falling now but warns of trouble ahead.
  • The United States added 16,160 franchise jobs in August, according to a new report.
  • Conditions strengthened in the latest Architecture Billings Index, and builders started work in August on the most single-family homes in six months.
  • FedEx reported a 7 percent rise in quarterly profits.
  • Chief executives were less optimistic about the economy in the third quarter.

Small Business Administration Closure Plan Will Be Deceptive and Devastating

I predicted President Obama would try and close the Small Business Administration (SBA) by combining it with the Department of Commerce in November of 2008. He proved me right in January of 2012 when he announced his plan to do exactly that.

When Ronald Reagan was very clear he wanted to permanently CLOSE the SBA his plan was to combine it with the Department of Commerce. Combining agencies, particularly with the Department of Commerce, is an old Washington trick to close an agency without having to deal with public backlash.

President Obama said the federal government could save $300 million a year by combing the SBA with the Department of Commerce. He never gave any details on how that would be achieved. $300 million to the federal budget is like the change in your car compared to your overall net worth.

Small Businesses Temporarily Sidestep Health Law

Many small businesses have found a way to temporarily sidestep some of the headaches brought on by the new health care law.

One of them is Huber Capital Management. The asset management firm is renewing its health insurance policy early, in 2013 instead of 2014. By renewing its policy this year, the company doesn’t have to buy insurance that conforms to the requirements of the new health care law. And it won’t have the surge in premium rates expected under the Affordable Care Act.

“We can just push this whole thing off and defer it for essentially one year,” says Gary Thomas, chief operating officer of El Segundo, Calif.-based Huber Capital, which has nine employees covered by insurance.

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Small Business Outlook On The Economy

September 10, 2013 by

business (10)“The greatest barrier to success is the fear of failure.”
Sven Goran Eriksson

Although the quote may strike a nerve in some of us, it really does not apply to entrepreneurs.  When we look at the many responsibilities and jobs that a small business owner has, the fear of failure is not stopping them from pursuing their dreams.  The economy and policies in Washington have not been kind to small businesses, but a recent survey indicates that capital spending, sales, inventory accumulation, and hiring are rising in August.

Read more about this and other news by clicking the links below.

U.S. small business confidence slips in August

U.S. small business optimism dipped in August as owners worried about the economy’s near-term outlook, but gains in sales expectations and hiring plans hinted at a pick-up in the pace of economic growth.

The National Federation of Independent Business said on Tuesday its Small Business Optimism Index slipped 0.1 point to 94 last month.

While details of the survey were fairly mixed, key indicators such as planned hiring, capital spending, inventory accumulation and sales all advanced in August, suggesting an improvement in sentiment in the months ahead.

“Capital spending and inventory investment plans increased as well, all activities that would put some energy into GDP (gross domestic product) growth,” the NFIB said in a statement.

The Old Are Working, but Not the Young

This summer has seen a larger share of a certain group of people working than at any time in the last three decades, according to government figures.

That group is older people.

During the summer months this year, an average of 35.9 percent of men ages 65 to 69 had jobs. Similarly, 25.6 percent of women in the same age group were working. Both figures were records for any summer since such numbers became available in 1981. The rate of employment for women 70 to 74 is also higher than in any previous summer.

All other age groups over 60 came close to setting records. The share of men 60 to 64 with jobs was 57.2 percent, and the share of women in the same age group was 47.1 percent. Both were less than a half a percentage point short of the previous summer high.

An entrepreneur who turned a town around

Pam Dorr wanted to be part of the solution and not the problem. Her town was overrun by wild bamboo of all things and her local economy was on the skids. Here is what she did.

Dorr rode into Greensboro, Alabama when its main street was on life-support. Even the catfish had moved on.

“Seventy-five percent of the businesses downtown were vacant or abandoned,” she recalled.

But Dorr has a special gift: using whatever’s lying around to build possibility. In this particular case, she showed us a bicycle made of bamboo. “It’s an engineered bamboo tube in a hex shape lined with carbon fiber,” she explained.

Wild bamboo was a local nuisance. “It turns out it’s great for building bikes.” said Dorr.

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Small Business And Tax Reform

September 2, 2013 by

business (11)If you are a small business owner, you have to have an opinion about this.

Although some of the articles speak of an economy that is showing signs of life, other indicators from other industries show that it may just be a stagnant economy.

You can read more about the most recent small business news by clicking the links below.

Small businesses should take stock, take a little risk

The economy is showing signs of life and that makes it a good time for small business owners to re-evaluate how they are running their companies.

Now that crisis mode has passed, owners need to make sure they’re ready to take advantage of growth opportunities on the horizon. Experts say it’s time for owners to think about taking some risks and to make sure that they are taking care of employees.

There’s evidence that owners are more confident. Nearly half of small business owners say there will be growth opportunities in the coming year, according to a survey taken in June and July by the National Small Business Association. That’s up from 38 percent six months ago. And the Wells Fargo/Gallup Small Business Index of small business confidence, compiled from a July survey of owners, jumped 9 points to 25 from the start of the year.

Small Business Spotlight: Boardroom Development Partners

What Boardroom Development Partners does is a little like an online dating service.

First there’s a survey of interests. Then more detailed information might be shared. The first face-to-face meeting takes place over cocktails in a public setting. If chemistry results, there are more intimate meetings.

With the parties BDP puts together, though, “closing the deal” means, well, closing an actual business deal.

BDP specializes in creating and hosting business events where CEOs of various financial services sectors meet and — based on surveys taken before the event — are matched with service providers who can help grow their business.

On tax reform, lawmakers target small business concerns — but will it matter?

Most small firms are set up as pass-through entities, meaning taxes are paid by their owners at the individual rate, which runs as high as 39 percent. By comparison, the corporate rate is 35 percent, and after deductions, corporations pay an actual average rate of about 12.6 percent, according to the Government Accountability Office.

Consequently, many small-business groups bemoaned a proposal last month by the Obama administration to lower the corporate rate without also lowering individual income rates.

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Small Business Owners Challenges

August 26, 2013 by

business (6)As a small business owner you are probably dealing with the same predicaments most other small business owners suffer from. Do you take the most needed vacation with your family or stay home and work? For most business owners the challenge of leaving their work and their earnings is a challenge with no easy solution.  Time off work equals sales lost, work accumulated, issues unresolved, accounting problems that need to be taken care of, etc. etc.

Click on the following articles to read more about this topic.

Small business weakness: Not understanding the numbers

We likely should listen when Dave Gay talks about suburban small businesses: Less than two months into retirement from his 21-year role as head of the Illinois Small Business Development Center at College of DuPage, Lisle, Gay responded quickly when I asked where the weaknesses might be in small businesses.

Topping a shortlist: “A lack of understanding of financials and what the numbers say,” Gay begins. Too many business owners “just don’t understand their financial records,” he says.

Next, but related: Lack of a transition plan, especially among now-aging Baby Boomers hoping their businesses will fund retirement.

Small Business Owners Pick Sales Over Sun and Fun

Many small business owners who took a vacation last summer have opted to keep on working this year instead, says a survey by American Express. Those with startups find it’s hard to tear themselves away when they’re nurturing a very young company, and many owners want to capitalize on momentum. Others are working because sales are down.

Jerome Cleary was on the verge of taking a trip to Hawaii this month when he started getting emails and phone calls from potential clients. He had to choose between new business for his public relations firm and the white sands of Waikiki.

He stayed home and worked.

“Things are supposed to die down during the summer. People go out of town or go on vacation. But suddenly people wanted to get started on projects,” says Cleary, who is based in Los Angeles.

Small Companies Power Ahead with Big Gains

In an economy that is expanding slowly, many companies are finding growth hard. But smaller companies entering new niches can grow quickly. Many are part of the Russell 2000, an index of small-company stocks that has outperformed other major indexes in 2013, suggesting investors are more comfortable buying stocks of smaller, riskier firms.

You may be unfamiliar with some of the best stocks on Wall Street this year. Small, mostly unknown names are leading the surge in stock markets. Companies like Entravision Communications, a Spanish-language media company; SunPower, a maker of solar panels, and MannKind, a biopharmaceutical company, have more than tripled in value. All are part of the Russell 2000, an index of small-company stocks that has outperformed other major indexes in 2013.

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The Affordable Care Act News

August 19, 2013 by

business (1)As October 1st. approaches, news about the Obama Cara Act is inundating the news.  Whether you agree with the Act or not, it seems everyone has an opinion. The conflicting issue that poses for small companies-small business- owners is an issue that is not a laughing matter. Read the articles below if you want to find more about this issue.

Will the Health-Care Law Help Small Businesses? 

Change doesn’t get much bigger than this.

Or more contentious.

President Obama’s Patient Protection and Affordable Care Act has rewritten the rules on health insurance. And it has left small companies scrambling to figure out what it means for them.

The section that has caused the most fuss among businesses is the so-called employer mandate. Companies with 50 employees or more must provide health coverage or pay a fine. And that coverage must meet new minimum standards.

Ohio predicts rate increases under ObamaCare

Ohio’s GOP insurance commissioner is projecting a marked increase in health insurance rates under ObamaCare, adding fuel to the debate over how the healthcare law will affect premiums.
The state insurance department announced Thursday that individual health policies in Ohio will cost an average of 41 percent more next year.

Plans available to small businesses will cost 18 percent more on average, officials said.

The figures reflect averages of all the plans that will be available in the individual and small-group markets, not the price consumers will be asked to pay.

Fraud Charges Won’t Help Small Business Lending Pioneers

Since launching SoMoLend, a startup that connects small businesses seeking loans with banks and individual lenders, Candace Klein has been an outspoken proponent of the JOBS Act, touting the law’s potential to unleash a flood of financing for small firms. Peer-to-peer lenders such as Lending Club and Prosper have already shown that individuals are willing to lend consumers billions, and Klein sought to bring the same crowdfunding principles to small businesses seeking loans.

Now Ohio’s securities regulator wants to shut her Cincinnati-based business down, alleging she lied to investors and sold securities without necessary licenses.

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Small Businesses And The IRS

August 13, 2013 by

business (11)When you are a small business owner there are too many government regulations that you must follow. The new Obama health care, according to many small business owners is detrimental to their business. The myriad of issues concerning a small business owner are certainly nothing to laugh about.
Here we bring you the most recent news about the IRS and small business, the educational aspect of being hired by a small business and more. Click on the links below to read the articles in their entirety.

IRS probing thousands of small businesses, raises eyebrows in Congress

The Internal Revenue Service has sent letters to thousands of small business owners questioning whether they shorted the coffers this past year, sparking criticism from some lawmakers who believe the agency is bullying mom-and-pop companies.

Under the heading “Notification of Possible Income Underreporting,” the letters started going out to small employers this summer demanding they review and confirm that they accurately reported their income on last year’s tax returns.

So far, the letters have been sent to about 20,000 employers across the country, who were targeted based on information the department has started collecting about credit and debit card transactions, the letter states.

Giving Small Businesses Room to Breathe

Federal rules hurt businesses large and small. But they may disproportionately hurt small businesses, which bear the costs of complying with them. While the Regulatory Flexibility Act of 1980 requires federal agencies to consider how rules might harm small businesses, too many agencies exploit loopholes to avoid the requirement. This has to change, and legislation now under review in the House of Representatives could bring relief to American small businesses.

No Degree? No Problem . . . At Least For Small Business Owners

When it comes to the value of a college education, there is one sector in which it’s perceived to offer surprisingly little – small business. Manta just released their SMB Q2 Wellness Index results and for the business owners they surveyed, higher ed doesn’t get particularly high marks as a key factor in their own success or as a criterion for hiring.

While 69% of business owners surveyed had attended college (well above the national average), only 68% of this college grad group said they believed this education made a difference in their success.

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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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Benefits To Your Business Through Social Media

July 30, 2013 by

business (7)The trend to advertise and lure customers through social media channels are done by big and small businesses.  No one is surprised these days that big companies are spending millions of dollars to launch a social media campaign to gain access to more customers. Facebook, Google, Twitter, and LinkedIn are some of the mediums businesses are using to gain exposure, market a new product, implement a strategy, and get a bigger market share for their businesses.

Survey: Businesses Benefit from Social Media Savvy

Activity on Facebook, Twitter and other social media is good for your business. At least that’s the opinion of many of your peers.

The BRANDfog 2012 CEO, Social Media and Leadership Survey (PDF) reveals that business leaders who use social media increase their brand’s profile and instill confidence in their leadership.

The survey polled hundreds of employees at companies ranging from Fortune 500s to small startups, and measured the effect of social media participation by the executive management team. The results can give owners and managers from businesses of all sizes insight into the overall effect of social media use.

5 Social Media DON’Ts for Small Businesses

In this day and age, it should come as a shock to no one that the use of social media networks are imperative to any small business looking to succeed. With their ability to reach so many people so quickly and easily, such platforms are truly invaluable assets when publicizing a product or company. However, there are ways that Facebook, Twitter, Reddit and the rest can be detrimental. When using a social media network, users have to be aware that there are certain things they must never to do.

Small Business Employment Share Shrinking for a Good Reason

Big business now employs the majority of private sector workers. Small business’s share of private sector employment has fallen from 54.8 percent in 1987 to 49.2 percent in 2011. This shift has occurred largely because big business has gotten better at preserving jobs.

The figure above uses Census Bureau data to calculate the small business fraction of employment over time. As you can see, with the exception of the 2001 to 2004 period, small business’s share of employment has been trending downward it peaked in 1987.

Employment is the result of both job creation and job destruction. When firms are started or grow, they often create jobs. When companies shut down or shrink, they often destroy jobs. Employment rises if job creation is larger than job destruction, and falls if job destruction exceeds job creation.

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Small Business Confidence and Healthcare News

July 9, 2013 by

business (5)As we bring you this news, we want to remind you that we always strive to bring you news of importance. Although news for today is a bit grim, they are important news and they have information that as a small business owner they should be important to you. As a small business owner the challenges we faced daily are too many to count, and we wear too many hats every single day of the year while juggling the many challenges we have, but at the same time those challenges are the ones that make us grow.

Click on the links below to read the articles fully.

Small business confidence slips in June – Reuters

Business RecorderSmall business confidence slips in JuneReutersThe National Federation of Independent Business said on Tuesday its Small Business Optimism Index decreased 0.9 point to 93.5 last month, changing course from two straight months of growth.

Six of the index’s 10 components fell and two were unchanged. Only job creation plans and the six-month outlook advanced.

This mirrors economists’ predictions that the economy will pick up momentum in the second half of this year after a lackluster start.

Rising Cost Of Healthcare Is Hurting Small Business Growth

As the CEO of Lendio.com, healthcare is a vitally important topic to our employees, our customers (who are also small business owners), my family, and me.  During the month of June, we decided to take a fresh look at the benefits that we are offering and the culture that we are creating for our employees.  As a result, healthcare has been top of mind.

Please allow me to share three quick stories that have occurred over the past month as to provide a little background.

Small Business Administration Cheats Small Businesses Again

On July 2, the Small Business Administration (SBA) released their latest fraudulent, fabricated and false claim that the federal government has come very close to achieving the 23 percent small business contracting goal require by federal law.

As usual, to eliminate media coverage, the SBA quietly released their claim that the government awarded $89.9 billion or 22.25 percent of all federal contracts to small businesses in FY 2012.

Here are the facts. Federal law requires a minimum of 23 percent of the total value of all federal contracts be awarded to small businesses. According to the Federal Procurement Data System (FPDS), the actual federal acquisition budget for FY 2012 is around $1.1 trillion. Legitimate small businesses should have received at least $253 billion in contracts.

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Ohio Budget News

July 1, 2013 by

business (3)According to the Columbus Business First, Ohio Governor Kasich budget was signed yesterday June 30, 2013.  What does it mean for you, and your school district? Does it, as a small business owner affect in your day to day operations? We are including two articles for you to read about the Governors budget, and what it entails for you as a private citizen and business owner.

Smaller acquisitions are the next big thing

Private equity firms target deals at lower end of middle market as big transactions prove pricey.

If this keeps up, more small to midsize companies will net bigger paydays if and when they sell.

The number of acquisitions at the lower end of the middle market is up, and observers expect the deal volume to keep growing because those who make them happen are hungry.

Private equity firms flush with investor cash are yearning for yield and are willing to move down in deal size to deploy that capital, especially because valuations for larger deals are pricey, observers say.

Kasich signs $62 billion Ohio budget, vetoes 22 items

Ohio Gov. John Kasich on Sunday signed Ohio’s two-year, $62 billion budget into law, according to the Columbus Business First.

The Republican governor signed off on significant tax changes and contentious abortion measures, but used his line-item veto to throw out 22 items, including a provision that prevented the state from expanding Medicaid.

Inside Gov. John Kasich’s Budget: 2014 and 2015

House Bill 59 (HB 59) is the legislation for Ohio’s state budget for the 2014 and 2015 fiscal years. It represents Gov. John Kasich’s proposed state budget for the next two years.

It was introduced on Feb. 12, 2013.

The legislation is more than 4,000 pages long and includes a host of changes affecting all areas of state government. In terms of education, the legislation lays out the details of Kasich’s new, proposed funding plan for Ohio schools and of a proposed expansion of private-school vouchers.

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