In the quest to optimize business expense management, we’ve gathered invaluable insights from ten finance leaders, including CEOs and Presidents. They share their top software picks, from streamlining payments with Bill.com to tracking construction expenses with Buildertrend, to help you keep your company’s finances in check.

• Bill.com: Streamline Payments
• Cube: Automate FP&A Tasks
• Xero: User-Friendly Expense Management
• Oracle NetSuite: Integrated Financial Tools
• Expensify: Simplify Expense Reporting
• Excel: Customizable Financial Modeling
• SAP Concur: Automated Expense Management
• HubSpot Analytics: Marketing Expense Tracking
• QuickBooks: Comprehensive Financial Management
• Buildertrend: Construction Expense Tracking

Bill.com: Streamline Payments

One piece of financial software that has significantly helped manage business expenses is Bill.com. This platform streamlines the process of managing vendor bills and payments, offering an efficient and automated solution for handling accounts payable.

With Bill.com, our firm can easily track invoices, schedule payments, and maintain an accurate record of all transactions. The software integrates seamlessly with our existing accounting systems, reducing manual data entry and minimizing errors. Its user-friendly interface and robust features allow us to focus on strategic financial planning while ensuring timely and accurate payments to our vendors.

Jack Perkins, Founder and CEO, CFO Hub

Cube: Automate FP&A Tasks

I recommend Cube as a robust FP&A (Financial Planning & Analysis) solution that has significantly improved how we manage business expenses, as well as enhanced the efficiency and precision of our financial forecasting, budgeting, and accounting processes.

Cube integrates seamlessly with spreadsheets, which has been a game-changer for our finance team. This integration enables us to make more informed business decisions by automating time-consuming manual tasks and minimizing errors, which is crucial in finance.

With Cube, the complex and tedious activities that are typical in FP&A and accounting, like financial consolidation, are automated. This allows our finance teams to focus more on strategy, planning, and improving corporate performance. As financial professionals, we appreciate being able to continue working within the familiar environment of spreadsheets while also taking advantage of the advanced features offered by a contemporary FP&A tool.

Since Cube is based in Excel, it allows for easy adjustments and facilitates quick analyses or changes in forecast drivers. We did require some external assistance to become fully operational with it, but the benefits have far outweighed this initial hurdle.

Eric Croak, CFP, President, Croak Capital

Xero: User-Friendly Expense Management

One piece of financial software that I see significantly helping in managing business expenses is Xero. Xero is a staple for many, and for good reason.

Personally, and based on much of the feedback I’ve heard over time, Xero is indispensable for several reasons. Its user-friendly interface makes it easy to track expenses, reconcile bank statements, and generate detailed financial reports.

Additionally, Xero’s real-time data sync and integration with various third-party apps streamline processes, such as our bookkeeping methods. This helps in reducing manual entry errors and saving valuable time.

The ability to access financial data from anywhere is also great, as that improves our efficiency and responsiveness to clients’ needs.

Overall, Xero’s comprehensive features and ease of use make it a powerful tool for managing business expenses effectively, for both seasoned finance professionals and newbies alike.

Kim Maine, Chief Numbler, Numble Bookkeeping Services

Oracle NetSuite: Integrated Financial Tools

I’ve been using Oracle NetSuite in my work as a commercial lending expert, and I can’t tell you how much I appreciate its integrated financial management tools. This cloud-based software is incredible! It has real-time tracking of costs, budget creation, and financial report generation, which are absolutely essential for managing complex business operations.

One of the best parts of NetSuite is how it automates many of our financial processes. This automation not only cuts down on errors but also keeps us in line with financial regulations—a big relief for any business. I’m especially fond of the thorough analytics and the customizable dashboards. They really help me make informed decisions that are important for our company’s financial health.

What’s more, the ability to consistently integrate with various financial and banking systems has drastically improved our financial visibility and efficiency. For a pro or a large company like ours, NetSuite’s capability to handle increasing workloads and its advanced features are indispensable for boosting our business performance.

Gary Hemming, Commercial Lending Director, ABC Finance Limited

Expensify: Simplify Expense Reporting

As the founder of Leverage, managing business expenses efficiently is very important to me. One tool that’s made a huge difference for us is Expensify.

Expensify has made expense reporting and tracking so easy. Our team can just snap a photo of their receipts with the app, and it automatically sorts them into categories like meals, transportation, or lodging. This has been a lifesaver, especially when we travel for client meetings or conferences.

What I love about Expensify is how well it integrates with QuickBooks, our accounting software. This means all our expenses are accurately recorded and synced up, making our quarterly reviews a lot smoother. I can quickly pull up detailed reports on our spending and see where we might need to make some adjustments.

We’ve also customized Expensify to fit our specific needs at Leverage. We set up different categories for things like marketing expenses, client entertainment, and operational costs. This helps us keep a close eye on where our money is going.

Another big plus is how Expensify has sped up our reimbursement process. Employees submit their expenses through the app, and I can review and approve them quickly. This has made reimbursements faster and keeps everyone happy.

Rhett Stubbendeck, CEO & Co-Founder, Leverage Planning

Excel: Customizable Financial Modeling

I’ve found Excel to be a real workhorse. It’s incredibly versatile and lets you customize things exactly for your business. You can build models for cash flow, valuations, profit and loss, balance sheets—the whole gamut. While there are definitely other options out there, the beauty of Excel is that you can set it up exactly how you need it. Manually entering expenses by category and income by invoice might sound tedious, but it really helps you understand the big picture—where your money comes from and where it goes.

For things like general ledgers and bookkeeping, I use Wave. But for tracking expenses and seeing how things are trending month to month, Excel allows for easy forecasting and lets you see if you’re hitting your targets. Plus, you can even automate some tasks with queries, making it even more efficient.

Echo Wang, CEO & Co-Founder, EpicBooks

SAP Concur: Automated Expense Management

SAP Concur has revolutionized how businesses handle travel and expense management. Its automated processes take the headache out of tracking receipts and filing reports. Instead of manually entering data, the software captures information from receipts and then automatically matches it to the corresponding expense report. This not only saves time but also reduces errors, ensuring that the financial team can focus on more strategic tasks.

Compliance is another area where SAP Concur shines. It integrates company policies directly into the expense reporting process, flagging any entries that don’t comply with the rules. This minimizes the risk of fraudulent claims and keeps everything in line with organizational standards. Streamlining these processes means that finance advisors can spend less time on administrative work and more time advising their clients or managing financial strategies.

Mary Tung, Founder & CEO, Lido.app

HubSpot Analytics: Marketing Expense Tracking

I’ve found HubSpot’s Marketing Hub to be incredibly useful for managing our marketing expenses. While it’s primarily known as a CRM and marketing platform, its built-in analytics tools have been a game-changer for tracking our digital marketing spend. I love how it breaks down our expenses by campaign, channel, and even individual content pieces. The AI-powered features help us predict ROI on future marketing investments, which is crucial for our budget planning. Plus, its integration with our other tools gives us a holistic view of how our marketing expenses translate into leads and sales.

Ryan Doser, Co-Founder, AI Insider Tips

QuickBooks: Comprehensive Financial Management

We use QuickBooks, and it has been a phenomenal system for us. One thing to note about software usage: take the time to build processes around it and really stick to them.

QuickBooks has capabilities beyond simple accounting, and we use it for bill paying and keeping track of our clients’ expenses. It has paid and unpaid versions, which also makes it great for those early entrepreneurs who are bootstrapping and need to save where their tech stack is concerned.

We have tried a number of different software for managing business expenses, and this is far and away the best. If you have passed it up thinking it is not robust enough, there are also specialists who can set it up to align specifically with your business. Give QuickBooks another look.

Matthew Capala, CEO, Alphametic

Buildertrend: Construction Expense Tracking

For our real estate investment company, we’ve found Buildertrend to be invaluable for managing renovation expenses. This construction management software has a robust financial tracking component that helps us stay on top of costs for each property we’re flipping. I particularly like how it allows us to create detailed budgets for each project and track actual expenses against our estimates in real time. The ability to categorize costs by property and type of work has given us much better insight into where our money is going. Plus, the mobile app makes it easy for our team to submit expenses and update budgets right from the job site.

Adam Seguin, Owner, Myrtle Beach Home Buyers

The post What Financial Software Helps Manage Business Expenses? appeared first on SmallBizTechnology.

Understanding Automated Business Models

Automated business models are intended to run with minimal human intervention, using systems and technologies to perform tasks. By automating business tasks, this type of model can significantly decrease time and effort spent maintaining it allowing owners to focus more on growing and optimizing their ventures.

Dropshipping as a Retail Strategy: An Affordable Solution

Dropshipping has quickly become one of the most sought-after automated business ideas, allowing entrepreneurs to sell products online without holding inventory or incurring storage fees. When customers make a purchase, their product is delivered directly from its supplier – eliminating warehousing costs while cutting upfront costs significantly. Shopify and Oberlo are two platforms that simplify starting such businesses by providing tools and integrations that streamline this process.

Print on Demand: Simplifying Custom Merchandise Creation

Print on demand (POD) is another automated business model that has been gaining popularity recently. Entrepreneurs using POD can design custom graphics for products like T-shirts, mugs, and phone cases with POD, then have these items printed and shipped out immediately after placing an order with services like Printful or Teespring to manage production and fulfillment for them so business owners can focus their energies on marketing and design instead of production and fulfillment logistics.

Affiliate Marketing: Harnessing Content to Generate Revenue

Affiliate marketing entails promoting products or services and earning a commission for every sale made via your referral link. This business model can be highly automated by creating content that attracts and converts visitors over time – such as blog posts, videos or social media updates that provide steady income streams for affiliate marketers. Tools like Google Analytics and affiliate networks help track performance while optimizing strategies for optimal results.

Subscription Services: Recurring Revenue Streams

Subscription services offer businesses a reliable and predictable source of income. Businesses in this category provide ongoing value to customers in exchange for a recurring fee, such as subscription boxes, software-as-a-service (SaaS), or membership sites. Automation tools can handle billing, customer management, content delivery, and billing, reducing the need for manual oversight and ensuring regular revenue while creating customer engagement over the long term. This model promotes regular revenue while cultivating long-term engagement between the service provider and the customer.

Online Courses and E-books for Monetizing Expertise: Exploiting Expertise for Profit

If you have expertise in an area, creating online courses or e-books can be a fantastic way to generate passive income. Once created, content can be sold repeatedly with minimal additional work needed – platforms such as Udemy, Teachable, and Amazon Kindle Direct Publishing provide platforms where this content can be sold repeatedly without incurring additional effort. Automation tools can assist in marketing enrollment distribution so you have more time to create additional content or work on other business ventures.

Real Estate Crowdfunding: Investing with Less Hassle

Real estate has long been seen as an effective means of creating passive income through investing. Traditional real estate investments, however, can take considerable time and capital, so real estate crowdfunding platforms such as Fundrise and RealtyMogul provide individuals an easier way to invest in projects with less money and direct involvement – these platforms manage properties and distributions for investors so that returns are earned without dealing with complex property management.

Automated Trading Solutions: Capitalizing on Market Opportunities

Automated trading systems, or trading bots, can execute trades in financial markets according to predefined strategies. These automated bots analyze market data and make decisions without human interference – potentially capitalizing on opportunities 24/7. While this approach carries risks and requires careful planning, it can become a lucrative passive income source for those with an understanding of trading principles and investment principles. MetaTrader and TradingView both offer tools for developing and deploying automated trading strategies.

Conclusion

Exploring automated business ideas is an excellent way to create sustainable passive income streams. By harnessing technology and innovative business models, automated ventures allow for minimal day-to-day involvement while still producing substantial revenue.

The post Exploring Automated Business Ideas: Exploring Passive Income Sources appeared first on SmallBizTechnology.

However, finding the capital to fund your plans can be challenging. Many business owners apply for business loans or grants to access more funds. However, the process can be complex, and many trusted financial institutions have low loan approval rates.

One good alternative to business loans is a HELOC loan. Read below to learn more about how it works, its advantages, and potential risks.

Understanding HELOC Loans

HELOC is short for “home equity line of credit.” As the name suggests, it allows people to borrow money using the equity they have in their homes. 

A home’s equity refers to the difference between the market value of your property and the amount you still owe on the mortgage. 

A HELOC works like a credit card. Once approved for a specific credit limit, you can borrow from that amount for any reason with a relatively lower interest rate than other loans. As you repay the amount you borrow, the credit becomes once again available.

The interest rate for HELOC loans can change depending on the market conditions. Your home will also become the collateral for a HELOC. If you’re unable to repay your loan for any reason, you might risk the foreclosure of your property.

How It Works in Financing a Business

Finding money to start or improve your business can be a challenge. Bank loans can get competitive and require high-interest rates. Therefore, many business owners must find creative ways to fund their startups or new initiatives.

One way to fund your business is through a HELOC loan. You can take out a loan from your HELOC for virtually any reason as long as you have the equity. 

If you’ve built up enough equity for your property by paying your mortgage promptly or making value-adding improvements, a HELOC is a good source of business funds.

Advantages of Using HELOC in Business

Finding ways to finance your enterprise can be tricky, and HELOC loans have emerged as an innovative way to fund further growth and opportunities. Here are some key advantages of using HELOC loans to expand your business:

Easier approval

Traditional business loans and grants often entail a lengthy and arduous process. They usually require strict criteria and extensive documentation. 

HELOCs can be a suitable alternative, as the approval processes aren’t as strict as other business loans. Taking advantage of the equity in your current properties allows you to sidestep the challenges of conventional loans and gain easier access to additional capital.

Competitive interest rates

HELOC loans are an attractive alternative to traditional business loans by providing competitive interest rates. While these rates may change, you’ll likely find a HELOC loan that offers lower interest rates than traditional business loans.

This cost-effective pricing structure helps minimize the financial strain on businesses and enhances profitability by minimizing loan-related costs.

Flexible repayment

HELOC loans often have two phases—the draw and the repayment periods.

During the draw period, you can take money out of your HELOC for as much as the limit allows. You only have to pay the minimum amount or the interest rate during this phase.

After the draw period comes repayment, which usually lasts up to 20 years; you won’t be able to borrow money from your HELOC anymore during the repayment period. Instead, you’ll have to repay the amount you owe, both principal and interest.

This structured repayment system allows you to plan your loans well. It also provides enough leeway to ensure prompt payments. 

Possibility for larger loans

Businesses that have scalability in mind can significantly benefit from HELOC loans. If you have established high equity in your residential properties, there is a good chance that you’ll gain access to larger credit lines.

This equity-based credit line can be the answer to finding the necessary funds to achieve business expansion.

Disadvantages of Using HELOC for Business Expansion

While HELOC loans offer attractive benefits to businesses seeking funding, they also carry risks and disadvantages. Understanding these potential outcomes can help you weigh your options and make better financial decisions.

Changing interest rates

One of the primary concerns with taking out HELOC loans is their variable interest rates. While you can access lower interest rates at certain times, these rates can change depending on market conditions.

Higher interest rates could pose significant challenges for businesses and cause financial strain. Abrupt changes in interest rates could also disrupt your financial projections, affecting overall profitability.

If you choose to fund your business expansion with a HELOC loan, it’s vital to consider this factor and develop risk mitigation strategies.

Risk of foreclosure

A HELOC loan is a secured loan, meaning you’ll need to put an asset up as collateral. In this case, your collateral will be your residential property. In the event of a default, you might lose your home. 

Harness Financial Opportunities

HELOC loans present an attractive funding opportunity for businesses seeking further growth. Their accessibility and favorable terms can help entrepreneurs realize their plans for scalability and expansion.

However, like any financial decision, taking out a HELOC loan requires careful planning and consideration. Understanding the benefits and drawbacks of such a loan can help companies maximize its advantages and plan for potential risks.

The post Leveraging HELOC Loans for Business Expansion appeared first on SmallBizTechnology.

The Importance of Small Business Grants for Women

Starting and growing a business requires sufficient capital. However, studies have shown that women entrepreneurs face significant obstacles when it comes to obtaining conventional business loans and government-supported loans. They are less likely to receive loans compared to their male counterparts, and even when they do, the loan amounts tend to be smaller. This gender disparity highlights the need for alternative funding sources, such as small business grants, to empower women in business and foster their economic growth.

Private Small Business Grants for Women

Private corporations and organizations recognize the importance of supporting women-owned businesses and have established grant programs specifically tailored to their needs. Here are some notable private small business grants for women:

1. Amber Grant

The Amber Grant, provided by WomensNet, offers monthly grants of at least $30,000 to female entrepreneurs. Each month, the organization awards a $10,000 Amber Grant, a $10,000 Start Up Grant for businesses in the idea phase, and a $10,000 Business Category Grant for businesses in specific categories. Additionally, at the end of each year, three $25,000 annual grants are awarded to the monthly grant winners. The application process is straightforward, and grants are awarded on a rolling basis.

2. The Papaya Grant

The Papaya Grant awards a $10,000 grant to one female entrepreneur to start or expand her business. While the application period for this year’s grant has ended, it’s worth keeping an eye on their website for future grant opportunities.

3. Giving Joy

Giving Joy provides grants ranging from $250 to $500 to U.S. women to help fund their entrepreneurial dreams. The grants can be used to start or expand a business, non-profit, charity, or project. Applications for Giving Joy grants are open until April 30, 2024, with awards being announced in August 2024.

4. EmpowHER Grant

The Boundless Futures Foundation awards EmpowHER grants of up to $25,000 to female entrepreneurs aged 22 and older. The grants are specifically for businesses that address social issues, and recipients also gain access to a network of business advisors for long-term planning support.

5. Ladies Who Launch

The Launch Program, funded by Ladies Who Launch, provides $10,000 grants, mentoring, and education to women and non-binary small business owners. Applications for the 2024 awards will open in February 2024.

Grants for Black or Latina Women

Women of color face additional economic challenges in accessing funding for their businesses. However, there are grants available specifically for Black or Latina women entrepreneurs. Here are a few notable grant programs:

1. Women of Color Grant Program

The Women of Color Grant Program, sponsored by the Tory Burch Foundation, awards grants of $10,000 or $20,000 to 75 businesses owned by women of color. Preference is given to businesses that have been operating for one to five years and have generated at least $100,000 in revenue. Keep an eye on the website for updates on the next grant cycle.

2. Publish Her Business Impact Grant

The Business Impact Grant (BIG) awards a $5,000 grant to a woman of color who is making a difference through her business. To be eligible, the business must be at least a year old, have annual revenue of $50,000 or more, and the applicant must be at least 21 years old. Applications open in June.

3. Sage Invest in Progress Grant

The Sage Invest in Progress Grant, in partnership with the BOSS network, provides 25 grants of $10,000 each to Black women entrepreneurs. Applicants must have been in business for no longer than five years.

Location-Specific Grants for Women Entrepreneurs

In addition to national grant programs, there are location-specific grants available for women entrepreneurs in certain regions or states. Here are a few examples:

1. Vanguard Accelerator

The Vanguard Accelerator provides grants and forgivable loans to businesses owned by Latinas and/or Black women in the Minneapolis St. Paul area. The program offers 10 $5,000 business grants, program scholarships, and access to forgivable loans ranging from $25,000 to $250,000.

2. Olga Loizon Memorial Foundation

The Olga Loizon Memorial Foundation awards grants of up to $10,000 to women entrepreneurs who live and operate a business in Michigan. Applicants must demonstrate financial need and submit a business plan.

3. StartHER Grant

The StartHER grant program, through the Center for Women Entrepreneurs at Texas Women’s University, offers grants of $5,000 to 25 businesses in Texas. To qualify, the business must be at least 51% owned by women and located in Texas.

Grant Databases

To simplify the grant application process, several databases aggregate information about various grants for business owners. These databases provide a centralized resource for finding and applying for multiple grants with a single application. Here are two notable grant databases:

1. iFundWomen

iFundWomen is a grant database that allows entrepreneurs to apply for multiple grants by filling out a single universal application. The database includes grants from well-known companies such as American Express, Visa, Unilever, and adidas.

2. Hello Alice

Hello Alice is a platform that offers a single application for multiple grants, along with knowledge, networking, and connections for entrepreneurs. It constantly updates its database with new grants, so entrepreneurs can stay informed about upcoming opportunities.

Grants for Everyone

While some grants are specifically targeted towards women, there are also grant opportunities available to entrepreneurs regardless of gender. Here are a few grants open to all:

1. Freed Fellowship Grant

The Freed Fellowship awards a $500 grant to the owner of an existing U.S. business every month. Monthly recipients are also eligible for one of two year-end grants of $2,500. Membership in the Freed Studio is required to be eligible for the grant.

2. SheaMoisture Fund

The SheaMoisture Fund offers grants and purpose programs to small, Black-owned businesses. The Next Black Millionaires program awards $100,000 grants, along with business development services and retail distribution support.

3. Stacy’s Rise Project

Stacy’s Rise Project provides $25,000 grants, mentorship by PepsiCo executives, networking opportunities, and exposure on FoundedByHer.org for women-founded businesses.

Successful Grant Application Strategies for Women Entrepreneurs

Securing funding through small business grants can significantly impact the growth and success of women-led enterprises. However, navigating the grant application process requires strategy, insight, and attention to detail. Here are some effective strategies tailored specifically for women entrepreneurs seeking grant opportunities:

Understand the Grantor’s Objectives: Each grant has its unique set of goals and criteria. It’s crucial to thoroughly understand what the grantor is looking to achieve and tailor your application to align with these objectives. Demonstrating how your business goals complement the grantor’s mission can significantly enhance your application’s appeal.

Craft a Compelling Narrative: Storytelling is a powerful tool in grant applications. Share your journey as a woman entrepreneur, the challenges you’ve faced, and how you’ve overcome them. Highlight the uniqueness of your business and its impact on the community or market. A compelling narrative can make your application stand out and resonate with the grant evaluators.

Showcase Your Business’s Impact: Clearly articulate how the grant will fuel your business’s growth and what specific outcomes you anticipate. Include data and evidence to support your claims. If your business has a social impact, emphasize how the grant will help expand this positive influence.

Prepare a Detailed Business Plan: A well-structured business plan demonstrates your commitment and the viability of your business. It should outline your business model, market analysis, financial projections, and how the grant funds will be utilized. A strong business plan can reassure grantors that their investment will be put to good use.

Highlight Your Achievements: Don’t be shy about sharing your successes. Whether it’s previous business milestones, community work, or awards, highlighting these achievements can build credibility and trust with the grant committee.

Seek Feedback Before Submitting: Before finalizing your application, seek feedback from mentors, business advisors, or fellow entrepreneurs. Fresh eyes can provide valuable insights and help catch any errors or areas for improvement.

Adhere to Application Guidelines: This might seem obvious, but strictly following the application instructions is crucial. Ensure that all questions are answered thoroughly and that you meet all eligibility requirements. Pay attention to deadlines and submission formats to avoid disqualification.

Follow Up and Show Persistence: After submitting your grant application, consider following up with the grantor to express your continued interest and availability for any additional information. If your application is not successful, seek feedback and use it to improve future applications. Persistence and resilience are key traits of successful entrepreneurs.

By employing these strategies, women entrepreneurs can enhance their chances of securing grant funding. Remember, grant writing is both an art and a science; it requires clear communication, strategic thinking, and a touch of creativity. While the process can be challenging, the potential rewards make it a worthwhile endeavor for any woman looking to grow her business and achieve her entrepreneurial dreams.

Networking and Mentorship Opportunities for Women in Business

Building a strong network is crucial for any entrepreneur, but for women, it can be especially valuable. Networking offers the chance to meet like-minded professionals, gain advice, and open doors to new business opportunities. Women-focused networking groups, such as Women in Business Networking (WiBN) or the National Association of Women Business Owners (NAWBO), provide platforms where female entrepreneurs can connect, share experiences, and support each other’s growth. Attending industry conferences, joining local business groups, and participating in online forums are also excellent ways to expand your professional network.

The Power of Mentorship

Mentorship can be a game-changer in the entrepreneurial journey, offering guidance, support, and wisdom from experienced business leaders. Women entrepreneurs should seek out mentors who can provide insights based on their own successes and challenges. Organizations like SCORE and MicroMentor offer free business mentoring services, including those specifically aimed at supporting women in business. Furthermore, mentorship doesn’t only have to come from formal arrangements; informal mentorship can occur naturally through networking events and professional associations.

Leveraging Online Platforms

In today’s digital age, online platforms offer vast opportunities for networking and mentorship. LinkedIn, for instance, is an invaluable tool for connecting with other business professionals, joining industry-specific groups, and participating in discussions. Websites like Meetup.com can help you find local networking events or groups dedicated to women entrepreneurs. Additionally, social media platforms such as Twitter and Facebook offer access to a global community of business leaders, influencers, and potential mentors.

Creating Your Support Network

Beyond formal networking and mentorship programs, building your own support network of peers, colleagues, and advisors can provide a solid foundation for your business endeavors. This could involve forming a mastermind group, joining or creating a Slack channel for female entrepreneurs, or setting up regular meet-ups with local business owners. The key is to cultivate a community that encourages mutual support, collaboration, and accountability.

Benefits of Diverse Networks

While connecting with other women in business is essential, diversifying your network can provide broader perspectives and opportunities. Engage with professionals from different industries, backgrounds, and experiences to enrich your understanding and approach to business. A diverse network can introduce you to new ideas, potential clients, and different ways of thinking, contributing to your personal and professional growth.

In summary, networking and mentorship play indispensable roles in the success of women entrepreneurs. By actively seeking out these opportunities and building meaningful relationships, women in business can navigate challenges more effectively, accelerate their growth, and pave the way for future success. Remember, the strength of your network can significantly impact the trajectory of your entrepreneurial journey, making it a critical aspect of your business strategy.

Innovations in Funding: Exploring Alternative Finance Options

The landscape of business funding is evolving rapidly, offering new and innovative ways for women entrepreneurs to secure the capital they need. Beyond traditional loans and grants, options such as crowdfunding, peer-to-peer lending, and revenue-based financing are gaining popularity. These alternatives can provide more flexible terms and may be more accessible for businesses that don’t meet the strict criteria of traditional lenders.

Crowdfunding: A Community-Based Approach

Crowdfunding platforms like Kickstarter, Indiegogo, and GoFundMe allow entrepreneurs to raise funds directly from the public. This method not only helps in gathering financial support but also in validating your business idea and gaining early customers. Women entrepreneurs can leverage crowdfunding to showcase their products or services, tell their story, and build a community of supporters.

Peer-to-Peer Lending: Bypassing Traditional Banks

Peer-to-peer (P2P) lending platforms connect borrowers directly with individual lenders, bypassing traditional financial institutions. Platforms like Lending Club and Prosper offer an alternative for obtaining business loans, often with less stringent requirements and quicker approval processes. This can be an excellent option for women entrepreneurs looking for competitive loan rates and a more personalized lending experience.

Revenue-Based Financing: Aligning Payments with Income

Revenue-based financing is an innovative funding solution where repayments are tied to the business’s monthly revenue. This model can be particularly advantageous for businesses with fluctuating income, as it aligns loan repayments with actual cash flow. Companies like Lighter Capital and Clearbanc offer revenue-based financing options tailored to the needs of growing startups and SMEs.

Angel Investors and Venture Capital: Seeking Equity Investments

While more traditional, the realms of angel investing and venture capital are also innovating to be more inclusive and supportive of women entrepreneurs. Networks like Golden Seeds and Female Founders Fund specifically focus on investing in women-led businesses. While these options involve giving up equity, they also provide valuable capital and business expertise.

Microloans: Small Loans for Emerging Entrepreneurs

Microloans are designed for small startups or entrepreneurs who need a smaller amount of capital. Organizations like Kiva and Grameen America specialize in microloans and often have programs specifically aimed at supporting women entrepreneurs. These loans can be perfect for those starting out or looking to make a modest investment in their business.

Utilizing Fintech Solutions for Business Finance

The rise of financial technology (fintech) has led to the development of new funding platforms tailored to the unique needs of small businesses. Fintech solutions can offer quicker loan approvals, more flexible terms, and innovative financing products compared to traditional banks. Women entrepreneurs should explore fintech options like Fundbox or Square Capital as potential sources for business funding.

By exploring these innovative funding options, women entrepreneurs can find the right financial solutions to start and grow their businesses. Each option has its own set of advantages and considerations, so it’s important to assess your business’s needs, goals, and financial health when deciding the best path forward. Diversifying your funding sources can also mitigate risks and increase the resilience of your business in the ever-changing economic landscape.

Conclusion

Small business grants for women play a crucial role in empowering and supporting women entrepreneurs. These grants provide much-needed capital that can help women-owned businesses start, grow, and thrive. By exploring the various grant opportunities available, women entrepreneurs can unlock new avenues for success and achieve their entrepreneurial aspirations. Whether through private grants, location-specific programs, or databases that simplify the application process, women entrepreneurs have access to resources that can propel their businesses forward. By harnessing these opportunities, women entrepreneurs can break barriers, challenge gender disparities, and contribute to a more inclusive and diverse business landscape.

FAQ Section: Funding and Financial Support for Businesses

How do I get money to start a business?

To fund your startup, consider several options: savings, loans from friends or family, bank loans, venture capital, crowdfunding platforms, angel investors, or government grants. The best choice depends on your business type, creditworthiness, and willingness to share equity.

Is it easy for a woman to get a business loan?

While challenges exist, many institutions now offer programs specifically for women entrepreneurs. Organizations like the Small Business Administration (SBA) and various non-profits provide loans, grants, and resources aimed at supporting women in business.

What is the $10,000 grant for small businesses in Wisconsin?

The $10,000 grant refers to specific programs like the “We’re All In Small Business Grant” provided by the Wisconsin Economic Development Corporation (WEDC), aimed at supporting small businesses impacted by COVID-19. Details and eligibility can vary, so it’s advisable to check the latest updates from WEDC or similar entities.

How do I write a grant proposal for a small business?

Writing a grant proposal involves several key steps: Research potential grants to ensure your business is eligible, follow the application instructions carefully, include a detailed business plan that outlines your objectives, budget, and the impact the grant will have on your business, and proofread your proposal to ensure it’s clear and error-free.

Is the government giving out money to start a business?

The government offers various grants and loans to help start businesses, especially for specific groups like veterans, women, or minority-owned businesses, and sectors like technology, education, and healthcare. Check federal, state, and local government websites for available programs.

Do I have to pay back the Wisconsin grant?

Most grants, including those offered by the state of Wisconsin for small businesses, do not require repayment. However, it’s crucial to read the terms and conditions of each grant carefully, as obligations may include reporting on how the funds were used.

What is the easiest SBA loan to get approved for?

The SBA 7(a) loan program is often considered one of the easiest SBA loans to qualify for due to its flexibility and the variety of uses for the loan, such as working capital, debt refinancing, and purchasing equipment. The exact requirements can vary, so consulting with an SBA-approved lender is advisable.

How can I start a business with no money?

Starting a business with no money might involve leveraging personal skills and resources, bootstrapping, or finding a co-founder with financial resources. Other strategies include pre-selling your product, crowdfunding, applying for grants, or seeking out angel investors.

Is the IRS giving startups money?

The IRS does not directly give money to startups. However, startups can benefit from various tax credits and deductions designed to encourage business growth and innovation, such as the Research and Development (R&D) Tax Credit. It’s beneficial to consult with a tax professional to maximize these opportunities.

Featured Image Credit: Photo by ThisisEngineering RAEng; Unsplash – Thank you!

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Best Banks for Small Business

Here are some of the best banks for small businesses in 2024, based on our research and analysis:

Let’s take a closer look at each of these banks, examining their unique offerings, advantages, and potential drawbacks.

Wells Fargo

Wells Fargo stands out among national and regional banks by offering a wide range of business banking solutions. It is one of the most active SBA lenders, demonstrating its commitment to supporting small businesses.

Pros

• One of the largest SBA lenders.
• High cash deposit limits.
• Business accounts can be opened entirely online.
• No fees at 16,000 Wells Fargo ATMs and access to around 3,900 branches.

Cons

• No free business checking account option.
• $100 minimum opening deposit requirement.
• Fee for using out-of-network ATMs.

KeyBank National Association

KeyBank National Association offers a comprehensive suite of business banking services. Its low monthly fees and multiple business checking offers make it a top choice for small businesses.

Pros

• Fee-free electronic transactions.
• High cash deposit limits.
• Business accounts can be opened entirely online.
• No fees at 16,000 KeyBank ATMs and access to around 4,700 branches.

Cons

• No free business checking account option.
• $100 minimum opening deposit.
• Fee for using out-of-network ATMs.

Chase Bank

Chase Bank is known for its full-service business banking. It offers a wide range of services, from business checking accounts to business credit cards, business loans, and more.

Pros

• No minimum opening deposit.
• Unlimited fee-free electronic transactions.
• Integrated credit card processing.
• Welcome bonus for new customers.
• No overdraft fee unless account is overdrawn by more than $50; 24-hour grace period applies to overdrafts beyond that amount.
• 24/7 customer support.
• No fees at 16,000 Chase ATMs and access to around 4,700 branches.

Cons

• $15 monthly fee.
• Monthly limit on fee-free cash deposits ($5,000) and physical transactions (20).
• Fee for using out-of-network ATMs.

Bank of America

Bank of America offers a range of business banking solutions, making it a great choice for businesses of all sizes. It has many branches across the country, providing convenience for businesses that prefer in-person banking.

Pros

• Fee-free electronic transactions.
• High cash deposit limits.
• Business accounts can be opened entirely online.
• No fees at 16,000 Bank of America ATMs and access to around 3,900 branches.

Cons

• No free business checking account option.
• $100 minimum opening deposit.
• Fee for using out-of-network ATMs.

PNC Bank

PNC Bank offers a multitude of business banking offerings. It provides business checking accounts, savings accounts, business loans, merchant services, and more. It also offers bookkeeping services, making it easier for businesses to manage their finances.

Pros

• Unlimited fee-free transactions; no overdraft fees.
• Earn 2.00% interest on account balances up to and including $250,000.
• Fee-free ATM access with automatic refund of third-party ATM fees (worldwide).
• Cash deposits via MoneyPass and SUM ATMs.
• Earn unlimited 1% cash back on debit card purchases.

Cons

• $10 monthly fee.
• $100 minimum opening deposit requirement.
• Minimum $500 balance required to earn cash-back rewards and waive monthly fee.

Regions Bank

Regions Bank offers a diverse range of business banking services. It has a large number of business checking and savings accounts, making it a great choice for businesses of all sizes.

Pros

• Ample account choices.
• One of the largest SBA lenders in the country.
• Access to bookkeeping and other business services.

Cons

• Limited online banking services.
• Some other banks offer more free transactions and free cash deposited per month.

Truist Bank

Truist Bank offers a comprehensive suite of business banking services, making it a top choice for businesses of all sizes.

Pros

• Great lineup of small business services.
• Multiple checking account options.
• Branch locations across the eastern and central parts of the U.S.

Cons

• High monthly fees for some accounts.
• Limited online banking services.

Capital One

Capital One is known for its excellent customer service and great credit card offerings. It provides a range of business banking solutions, including business checking and savings accounts, business loans, and merchant services.

Pros

• Customizable banking experience.
• Excellent in-person and online customer service.
• Great credit card offerings.

Cons

• Limited branch locations.
• High minimum deposit for some accounts.

U.S. Bank

U.S. Bank offers a comprehensive suite of business banking services. It provides business checking and savings accounts, business loans, merchant services, and more.

Pros

• Wide range of term loans available.
• Flexible loan payment lengths.
• Solid bank accounts.

Cons

• Credit card offers geared towards more established businesses.
• Limited savings options.

TAB Bank

TAB Bank provides a range of business banking solutions. It offers business checking and savings accounts, business loans, merchant services, and more.

Pros

• Decent APY.
• Lots of business-specific offerings.
• Good online experience.

Cons

• Minimum deposit requirements.
• Monthly fees if conditions are not met.

Live Oak Bank

Live Oak Bank is one of the most active SBA lenders in the country. It offers a range of business banking solutions, including business checking and savings accounts, business loans, merchant services, and more.

Pros

• Solid APY on savings.
• Lots of lending products.
• Good online banking experience.

Cons

• No branch locations.
• No business checking account.

Selecting the best bank for your small business involves considering various factors, from the bank’s business banking offerings to its customer service and convenience. The banks mentioned above are some of the top choices for small businesses in 2024, but the best bank for your business will depend on your specific needs and preferences.

Criteria for Choosing the Best Banks for Small Business

We evaluated almost 30 national, regional, and online banks to identify the top banks for small businesses, considering the following aspects:

1. Business Checking Accounts: We looked at the number and types of business checking accounts offered. We considered the transaction limits, fees, and ways to waive the fees.

2. Business Loans: We examined the range of small business lending options, including SBA loans and traditional term loans.

3. Additional Services: We assessed the additional services offered, such as business credit cards, merchant services, payroll services, and business insurance.

Understanding Small Business Banking Needs

Before diving into the list of the best banks for small businesses, it is essential to understand what your business needs from a bank. As a small business owner, you must consider the following:

1. Business Checking Account: This is a must-have for any small business. It separates your personal and business finances, making it easier to manage your money and comply with tax regulations.

2. Business Savings Account: A business savings account can help you set aside funds for future investments or unexpected costs. Some banks offer high-yield business savings accounts that earn interest over time.

3. Business Loans: Banks can provide various business loans, including traditional term loans, SBA loans, and lines of credit. These loans can fund business expansion, purchase equipment, or cover operational expenses.

4. Merchant Services: If your business accepts card payments, you’ll need a merchant services provider. Some banks offer this service, making it easier to accept and process card transactions.

Selecting the right bank for your small business is a decision of paramount importance. The bank you choose will play a pivotal role in managing your financial affairs, facilitating transactions, providing credit when needed, and offering essential financial services. To make an informed decision, it is imperative to consider a multitude of factors that align with the unique needs and goals of your business. In this section, we delve into the critical factors that should guide your choice when selecting a bank for your small business.

Business Banking Needs and Goals:

Begin by assessing your specific business banking needs and long-term objectives. Consider whether you require basic checking and savings accounts, access to loans or credit lines, merchant services, or specialized business products. Your bank should align with your business’s growth and financial goals.

Account Types and Fees:

Evaluate the range of business account types offered by the bank. Examine the fee structure, including monthly maintenance fees, transaction fees, and ATM fees. Look for options to waive these fees, such as minimum balance requirements or transaction limits.

Interest Rates and APY:

If your business maintains substantial account balances, inquire about the interest rates or Annual Percentage Yield (APY) offered on business savings or money market accounts. A competitive interest rate can help your business earn additional income on idle funds.

Location and Accessibility:

Consider the bank’s physical presence and accessibility. If in-person banking is essential to your business, opt for a bank with a network of branches and ATMs in your area. For businesses with nationwide operations, ensure access to a widespread ATM network.

Online and Mobile Banking:

In today’s digital age, online and mobile banking capabilities are crucial. Assess the bank’s online platform and mobile app for ease of use, functionality, and features. These tools should facilitate convenient account management, fund transfers, and mobile check deposits.

Customer Service and Support:

Reliable customer service is indispensable when issues arise or questions need answering. Investigate the bank’s customer support channels, including phone, chat, email, and in-branch assistance. Assess the bank’s reputation for responsiveness and assistance.

Business Loans and Credit Lines:

If your business anticipates the need for financing, explore the bank’s lending options. Inquire about business loans, lines of credit, or Small Business Administration (SBA) loans. Assess the application process, interest rates, and repayment terms.

Additional Services:

Examine the availability of additional services such as merchant services, payroll processing, business insurance, and retirement accounts. These services can streamline your business operations and offer valuable benefits.

Regulatory Compliance and Security:

Ensure that the bank complies with all regulatory requirements and maintains the necessary security measures to protect your business’s financial data. Verify that the bank is a member of the Federal Deposit Insurance Corporation (FDIC) or an equivalent organization for deposit insurance.

Community Engagement and Social Responsibility:

For businesses that prioritize community engagement and social responsibility, consider the bank’s commitment to these values. Some banks actively support local communities through philanthropic initiatives, which may align with your business’s values.

Reviews and Recommendations:

Seek out reviews and recommendations from other small business owners or industry associations. Hearing about the experiences of peers can provide valuable insights into the bank’s performance and suitability for your business.

Legal and Regulatory Considerations:

Familiarize yourself with any legal or regulatory considerations that may impact your choice of bank. These could include industry-specific regulations or compliance requirements that affect your business.

In conclusion, choosing the right bank for your small business is a decision that should be approached with careful consideration of multiple factors. By evaluating your business’s unique needs, assessing account options, examining accessibility and digital capabilities, and considering customer service, lending options, and additional services, you can make an informed choice that supports your business’s financial success and growth. The selection of a suitable bank is a foundational step toward achieving your business goals and ensuring efficient financial management.

Essential Tips for Effective Small Business Banking

In the complex landscape of modern business, selecting the right bank is just the initial step on the path to effective financial management. Small business owners must also be well-versed in the best practices and strategies that can optimize their banking experience and contribute to the growth and success of their enterprises.

Maintain Clear Separation of Finances: One cardinal rule of small business banking is to maintain a clear separation between personal and business finances. Opening a dedicated business checking account is crucial for this purpose. This separation not only simplifies financial tracking but also ensures compliance with tax regulations.

Regularly Reconcile Accounts: To prevent discrepancies and errors in financial records, small business owners should establish a routine for reconciling their bank accounts. Regularly comparing bank statements with internal records helps identify discrepancies early, facilitating prompt resolution.

Embrace Online and Mobile Banking: The convenience and efficiency of online and mobile banking cannot be overstated. Business owners should embrace these digital platforms for tasks such as account monitoring, fund transfers, bill payments, and mobile check deposits. Online and mobile banking offer real-time access to account information, saving time and effort.

Maximize Digital Payment Solutions: In today’s digital age, small businesses should leverage digital payment solutions to streamline transactions and improve cash flow. Consider accepting online payments, implementing electronic invoicing, and utilizing digital payment platforms to expedite the receipt of funds.

Monitor Cash Flow Closely: Maintaining a healthy cash flow is vital for business sustainability. Small business owners should monitor their cash flow closely, keeping a watchful eye on income, expenses, and payment timelines. Implementing cash flow forecasting tools can help anticipate financial needs.

Optimize Savings and Investments: Small business owners should explore opportunities to optimize their savings and investments. Investigate high-yield business savings accounts or money market accounts that offer competitive interest rates. Allocate surplus funds strategically to maximize returns.

Seek Professional Financial Advice: When faced with complex financial decisions, seeking professional financial advice can be invaluable. Consider consulting with a financial advisor or accountant who specializes in small business finance. Their expertise can guide important decisions, such as tax planning, investment strategies, and financing options.

Build Strong Banking Relationships: Building strong relationships with your bank can yield significant benefits. Cultivate open communication with your bank’s representatives, discuss your business’s needs, and explore opportunities for customized financial solutions. A strong banking relationship can lead to more favorable terms on loans or lines of credit.

Monitor Account Activity for Fraud: Small businesses are not immune to financial fraud and cyber threats. Implement robust security measures to protect your business accounts. Regularly monitor account activity for unauthorized transactions and consider using features like account alerts for added security.

Review Banking Services Regularly: The financial landscape is constantly evolving, and banking institutions regularly update their services and offerings. Small business owners should periodically review their banking services to ensure they align with the changing needs of the business. Explore new features, products, or account types that may enhance efficiency or provide cost savings.

Budget Wisely and Plan for Emergencies: Effective budgeting is a cornerstone of small business financial management. Develop a comprehensive budget that accounts for both short-term and long-term financial goals. Additionally, establish an emergency fund to safeguard your business against unforeseen challenges.

Stay Informed About Banking Regulations: Banking regulations can impact various aspects of business banking, from transaction fees to lending terms. Stay informed about relevant banking regulations and industry developments that may affect your business. Compliance with these regulations is essential for avoiding potential legal and financial pitfalls.

In conclusion, small business banking is not a passive endeavor but rather an active partnership between business owners and their chosen banking institution. By implementing these essential tips, small business owners can optimize their banking experience, enhance financial stability, and position their businesses for growth and success. Effective small business banking is a dynamic process that evolves with the changing needs of the business and the financial landscape, and staying informed and proactive is key to achieving long-term financial health and resilience.

Wrapping Up

In summary, the world of small business banking in 2024 offers a diverse array of options for entrepreneurs seeking to manage their financial affairs effectively. This article has provided a comprehensive overview of some of the best banks for small businesses, examining their unique offerings, advantages, and potential drawbacks. From established giants like Wells Fargo and Chase Bank to regional players like KeyBank National Association and niche-focused institutions such as Live Oak Bank, small business owners have a wealth of choices to consider.

We have also delved into the critical factors that should guide your decision when selecting a bank for your small business. These factors range from understanding your specific business banking needs and goals to assessing account types and fees, interest rates, and the bank’s accessibility and digital capabilities. Customer service, lending options, additional services, and regulatory compliance were also highlighted as essential considerations.

Furthermore, we explored essential tips for effective small business banking, emphasizing the importance of maintaining a clear separation of finances, regularly reconciling accounts, and embracing online and mobile banking. Maximizing digital payment solutions, monitoring cash flow closely, and optimizing savings and investments were underscored as strategies to enhance financial management.

Seeking professional financial advice, building strong banking relationships, monitoring account activity for fraud, and staying informed about banking regulations were presented as key practices to ensure a secure and productive banking experience.

Ultimately, the choice of the best bank for your small business should align with your unique needs, goals, and preferences. By considering the factors and tips outlined in this article, you can make an informed decision that supports your business’s financial success and growth. Effective small business banking is not merely a transactional process but a dynamic partnership that contributes to the resilience and prosperity of your enterprise.

Frequently Asked Questions

Which bank is best for start-up business?

The best bank for a startup business can vary depending on your specific needs and location. Some popular options include Wells Fargo, Chase Bank, and Bank of America. It’s essential to consider factors like fees, account types, access to loans, and proximity to branches when choosing the right bank for your startup.

What bank accounts should I have for my small business?

For a small business, it’s advisable to have at least two primary bank accounts: a business checking account and a business savings account. The checking account is for day-to-day transactions, while the savings account can help you set aside funds for emergencies or future investments.

What kind of bank account should I open as an LLC?

As an LLC (Limited Liability Company), you should open a business bank account specifically designed for LLCs. These accounts often provide features that cater to the needs of LLCs, such as liability protection and tax advantages.

Which bank account is best for business?

The best bank account for your business depends on factors like your business type, size, location, and specific financial needs. Popular options include business accounts offered by major banks like Wells Fargo, Chase Bank, and Bank of America, as well as online banks like Ally Business Checking or Novo.

Do I need an EIN to open a bank account for an LLC?

Yes, it’s typically required to have an Employer Identification Number (EIN) to open a bank account for your LLC. An EIN is issued by the IRS and serves as a unique identifier for your business. It’s essential for tax purposes and can also be necessary for banking and financial transactions.

Is Chase good for small businesses?

Chase Bank is generally considered a reputable option for small businesses. They offer a range of business banking services, including business checking accounts, business credit cards, and business loans. However, the suitability of Chase for your small business depends on your specific needs and location.

Is Bank of America good for small businesses?

Bank of America is another well-established bank that offers various services for small businesses. They have a broad branch network and offer business checking accounts, business savings accounts, and business credit cards. The suitability of Bank of America for your small business will depend on your requirements and preferences.

How much should I start a business bank account with?

The initial deposit requirements for opening a business bank account can vary from bank to bank. Some banks may have low or no minimum deposit requirements, while others may require a significant initial deposit. It’s essential to research different banks and choose one that aligns with your financial capabilities.

Is it OK to use a personal bank account for business?

While it’s possible to use a personal bank account for business transactions, it’s generally not recommended. Mixing personal and business finances can lead to complications with accounting, taxes, and legal liability. Opening a separate business bank account is a better practice as it helps maintain clear financial separation and simplifies record-keeping for your business.

The post Ranking The Best Banks For Small Businesses (2024) appeared first on SmallBizTechnology.

While most have a “good” credit score, the figure above means that 28 percent of adults still have bad credit. There are about 258 million adults in the US, meaning approximately 72.24 million Americans have “bad” credit.

If you’re among those with bad credit, don’t worry. Boost your credit score today for five compelling reasons.

1. Quicker Business Loan Approval

If you plan on starting a small business but don’t have the necessary funding, you’ll likely need to secure a small business loan. Getting approval for a small business loan with a poor credit score can be challenging, if not impossible.

While lenders and credit unions don’t have a standard minimum credit score for loan applications, they generally want at least 700. You can still get a business loan with a lower credit score but expect high-interest rates and unfavorable loan conditions.

A 700 (or higher) credit score means you don’t pose a considerable financial risk to the institution from which you are getting a business loan. Lenders are likelier to give you the loan and offer lower interest rates.

If you have a less-than-stellar credit score, table your business plan temporarily. Your priority should be to boost your credit score first.

2. Better Mortgage Rates

Poor credit doesn’t just impact your business. It also affects your personal life.

One of the most significant things a low credit score will affect is your ability to own and pay for a home.

Even with a credit score of at least 670, you will end up paying thousands of dollars towards your mortgage over the life of the loan. Expect to pay thousands more for the same loan if you have poor credit standing (a score lower than 670).

US mortgage rates vary by state, but the average monthly mortgage payment in 2022 was $1,775.

According to MyFICO, an individual with at least a 700 credit score could receive an interest rate of 6.657 percent on a 30-year fixed mortgage. Another individual with a 620 credit score would receive an interest rate of 8.024 percent.

Meanwhile, the average cost of a home ( an existing single-family home, not a new build) in the US in 2023 is $387,000.

To illustrate the positive impact of a good credit score on mortgage rates, let’s look at the same home loan from the perspectives of two prospective homebuyers using the figures above.

Homebuyer A

• 700 credit score – 6.657 percent interest rate
• $387,000 home price with a downpayment of 20 percent at $77,400

According to Bankrate’s mortgage calculator, homebuyer A would pay $1,988 monthly for a 30-year fixed mortgage (excluding property taxes and homeowner’s insurance). $1,988 monthly in just one year is $23,856.

Homebuyer B

• 620 credit score – 8.024 percent interest rate
• $387,000 home price with a downpayment of 20 percent at $77,400

Homebuyer B would pay $2,276 monthly for a 30-year fixed mortgage (excluding property taxes and homeowner’s insurance). $2,276 monthly in just one year is $27,312.

Based on these calculations, the individual with a 620 credit score pays $3,456 more annually in mortgages for the same loan than the individual with a 700 credit score.

3. Easier Time When Renting

Poor credit doesn’t just affect your ability to own a home. Renting an apartment or condo with bad credit can also be difficult, especially in large metropolitan areas.

Unlike buying a home, renting an apartment or condo has fewer and less meticulous standards. Landlords don’t have a unified set of requirements for new tenants. There’s also no standard minimum credit score requirement for renting a property.

However, landlords generally prefer new tenants with a minimum credit score of 670. You could rent an affordable place in less populated, non-urban areas with a 600 to 650 credit score, but there’s no guarantee. Landlords may approve you as a new tenant but require you to pay a hefty deposit to offset the possible risks.

With a credit score of at least 670, you demonstrate to potential landlords you have a solid history of meeting your financial obligations. Furthermore, landlords will likely not require you to find a cosigner for your lease or pay a substantial cash deposit.

4. Lower Rates, Higher Limits, and Increased Rewards on Credit Cards

Seventy-seven percent of American adults have at least one credit card, with an average interest rate of 27.79 percent.

Just because you boost your credit score doesn’t mean credit card companies will approve your application automatically. They’ll still have to consider other factors, like your annual income, debt, and the number of credit cards you already have. However, having good credit will increase your chances of getting approval.

Furthermore, you will likely get lower interest rates from credit card companies if you have good credit. You will also enjoy higher credit limits and qualify for unique credit card rewards. You may receive various rewards, including exclusive discounts at specific stores, VIP treatment at certain establishments, regular freebies, higher cash-back earnings, and more.

Credit card companies will offer you better rewards if you have a good credit history because they know you are not a risky borrower.

5. Better Terms on Smartphone Contracts

The US has one of the world’s largest smartphone markets, with over 310 million Americans owning a smartphone—around 92% of the population.

It’s unsurprising why most Americans own and use a smartphone in today’s fast-paced digital age. After all, you can do virtually anything on a modern smartphone. You can talk to friends and colleagues using various instant messaging apps, shop online, pay bills, and more.

You need good credit to get an affordable and reasonable smartphone plan from any of the top mobile network providers in the US.

Each network provider works differently and has varied criteria for their mobile phone plans. Some providers, like Verizon, require a credit check but don’t publicly disclose their minimum credit score requirement.

Meanwhile, many providers offer deals for new mobile phone contracts, but these offers generally only apply if you have a good score; All the more reason to boost your credit score.

Providers often give you “premium” plans with more benefits (e.g., additional data, more call minutes, unlimited texting, etc.) if you have a good credit score. They are also much less likely to require you to pay upfront costs like a security deposit or a fee to lower your monthly payments.

You can still get a smartphone plan if you have poor credit, but having good credit makes the application process much smoother.

Start Monitoring Your Credit and Taking Steps To Improve Your Score

Do you want to improve your credit health? Start monitoring it. You can determine your current financial standing by checking your credit history, including past debts, payments, and delinquencies.

Regularly watching your credit also makes it much easier to understand what lenders see at any given time when they perform a credit check. For example, if you know you have a recent history of a few late payments, you’ll realize it may not be wise to apply for a new credit card for now.

Monitoring your credit also lets you identify inconsistencies, like incomplete or inaccurate information. You can file credit report disputes with the appropriate credit bureaus so they can correct their mistakes.

The good news is the Federal Trade Commission (FTC) requires credit bureaus to correct inaccurate reporting for free, so you don’t have to worry about a dispute burning a hole in your pocket. Furthermore, a favorable result in your credit report dispute can increase your score.

For example, identity errors are among the most common credit reporting mistakes.

Say you see several “hard inquiries” on your credit report over several months. When you apply for a new credit card, you get a hard inquiry because the lender checks your credit. Each can lower your score by up to 10 points, especially if there are too many over a short period.

You’re 100% certain you didn’t apply for several new credit cards in only a few months, so you dispute the information with the credit bureau.

The bureau conducts its investigation and determines the hard inquiries belonged to a different person with a similar name. The bureau then removes the inaccurate information from your credit report and adds back the points they docked you for all those hard inquiries. This will boost your credit score.

There are various ways to monitor your credit to catch errors and improve your score. You can use credit score services that often charge monthly fees. You can purchase reports from FICO and choose to get reports from just one or all three major credit bureaus (Experian, TransUnion, and Equifax) for a one-time fee.

However, paying for regular credit reports may not be the best option if you’re trying to save money and improve your credit health.

A free credit monitoring app can help if you want to be cost-effective. Such an app can help you regularly monitor your credit and set financial goals. You can get weekly updates and insights into the steps you need to take to improve your credit position without paying anything.

Good Credit Makes Life Easier

This article doesn’t cover all the benefits of a good credit score. There are many other advantages you can learn by doing your own research. However, the main takeaway is that good credit makes life much easier, whether it’s your business or personal life.

You don’t have to worry about lengthy loan approval processes, steep interest rates on your mortgage, and lenders declining your credit card application if you have good credit.

Featured Image provided by stevepb; Pixabay; Thanks!

The post  5 Advantages of Good Credit (and Why You Should Monitor It) appeared first on SmallBizTechnology.

Apply for Loans

Car loans for family-friendly vehicles and payday express loans for unexpected costs can be helpful for families unable to cover big expenses due to the high cost of living. Payday loans can be beneficial when facing unexpected one-off costs like car repairs or new appliances.

You may also explore loans when making home upgrades or buying new furniture. Many families can handle regular weekly loan payments better than larger, one-off payments.

Seek Remote Work

Being a new parent can sometimes mean taking time off work to care for your children. While you likely wouldn’t have it any other way, managing the income loss can be challenging. If you have digital skills, consider part-time remote jobs to ease the burden. Completing a few hours of work while your children sleep might provide you with much-needed funds to pay everyday bills.

Rely On Family for Childcare

Childcare in the United States is expensive, with American Progress reporting that families with infants would need to pay $16,000 annually to cover the actual cost of childcare. This is around 21% of a family of three’s median income.

When you’re not in a position to pay over $1,300 per month, you might be able to reduce your childcare-related costs by relying on loved ones for help. Even just a few days of shared care might result in significant financial savings.

Be a Responsible Spender

With more mouths to feed, money doesn’t go as far as it might have done before you had children. However, that doesn’t mean you won’t be able to afford what you need. There are many things you can do to save money and cut costs, such as:

• Creating a meal plan
• Shopping for in-season produce
• Growing your own vegetables
• Not making impulse buys
• Buying used goods
• Selling something before buying something to clear clutter and save money

Enjoy Free Activities

While you might love to take your children to paid attractions like theme parks and zoos and let them participate in extracurricular activities, the costs can stack up. Fortunately, there are plenty of fun activities your family can enjoy that don’t cost anything.

You can explore national parks and museums, visit beaches and rivers, and head to local parks for fun on public playground equipment. Libraries, malls, farmer’s markets, and botanical gardens might also be immersive and exciting environments for your family. Not every family bonding activity has to cost money.

Navigating the financial challenges of parenthood can sometimes be hard, but they can be manageable with time and planning. Be a responsible spender, ask loved ones for help, and be aware of the available lending options to ease your financial stress. Managing your family’s finances might be more straightforward than you think. 

Featured image provided by Vitaly Taranov; Unsplash; Thanks!

The post Navigating the Financial Challenges of Parenthood appeared first on SmallBizTechnology.

The Initial Optimism and Investments

When Bezos, Soon-Shiong, and Benioff purchased their respective media outlets, there was a sense of cautious optimism in the newsrooms. It was hoped that their business acumen and tech know-how would pave the way for innovative solutions to the pressing issue of generating revenue in the digital era. Bezos acquired The Washington Post in 2013 for approximately $250 million, Soon-Shiong purchased The Los Angeles Times in 2018 for $500 million, and Benioff bought Time magazine with his wife for $190 million in the same year. However, despite their best efforts, these billionaire owners have found themselves grappling with the same financial challenges faced by their predecessors.

The Harsh Reality of Losses

According to insiders familiar with the financial situation of these publications, both Time, The Washington Post, and The Los Angeles Times incurred significant losses in the previous year. Despite substantial investments and exhaustive attempts to diversify revenue streams, these publications were unable to turn a profit. The losses suffered by these media outlets have underscored the fact that wealth alone does not guarantee success in the news industry.

“Wealth doesn’t insulate an owner from the serious challenges plaguing many media companies, and it turns out being a billionaire isn’t a predictor for solving those problems,” said Ann Marie Lipinski, the curator of the Nieman Foundation for Journalism at Harvard University. The employees, who initially held high hopes for their billionaire owners, have also been met with the realization that financial success is not easily attainable.

The Troubles at The Los Angeles Times

The Los Angeles Times has been particularly affected by the financial struggles. Kevin Merida, an esteemed editor, recently announced his resignation, which sources say was due to tensions with Soon-Shiong over editorial and business priorities. The company was projected to lose between $30 million to $40 million in 2023, prompting job cuts and discussions on the possibility of further layoffs. The situation has become so dire that the union of The Los Angeles Times has called for an emergency meeting to address the impending layoffs.

A spokesperson for Soon-Shiong acknowledged the significant gap between revenue and expenses at The Los Angeles Times, even after cost-saving measures were implemented. While the billionaire owner and his family have invested tens of millions of dollars annually since acquiring the publication in 2018, it has become evident that relying solely on the owner’s benevolence is not a sustainable long-term plan.

The Struggles at The Washington Post

Similarly, Bezos has faced challenges in turning The Washington Post into a profitable venture. Despite the momentum gained following the 2020 election, the publication experienced a decline in subscriptions and advertising revenue, resulting in losses of approximately $100 million last year. In response, the company initiated buyouts, which led to the departure of 240 employees, including some well-regarded journalists. Concerns have been raised by remaining staff regarding the diminished research capabilities for impactful reporting.

Mr. Bezos, who once stated that he purchased The Post because it was an important institution, has emphasized the need for profitability. However, the financial struggles faced by the publication have persisted, casting doubt on the ability of even the wealthiest individuals to reverse the fortunes of traditional news organizations.

The Challenges at Time Magazine

Time magazine, under Benioff’s ownership, has also encountered financial difficulties. Reports suggest that the publication lost around $20 million in 2023 alone. In an attempt to mitigate these losses, Time has considered cost-cutting measures in the first quarter of this year. The company, however, has refrained from commenting on its financial situation and has instead highlighted the growing audiences and advertising revenue under the leadership of CEO Jessica Sibley.

Despite the challenges faced by Time, Benioff remains optimistic about the company’s future. He commended Sibley for her efforts in restructuring the organization and driving growth, citing “lots of exciting changes based on an amazing vision.” Time is also exploring brand licensing deals overseas, following the footsteps of successful magazine companies like Forbes and Condé Nast.

The Few Success Stories

While many billionaire-owned news organizations struggle, some success stories offer a glimmer of hope. The Boston Globe, acquired by John W. Henry, the owner of the Boston Red Sox, has reportedly been profitable for several years. The profits generated by the publication have been reinvested to further strengthen The Globe’s operations. Likewise, The Atlantic, purchased by Laurene Powell Jobs, has set ambitious targets for digital and print subscribers, aiming to achieve profitability. Although The Atlantic has yet to achieve profitability, it boasts a significant subscriber base of over 925,000 as of last summer.

The Increasing Challenges

The challenges faced by these billionaire-owned news organizations are only intensifying. Web traffic has dwindled as referrals from search engines like Google decline, while the rise of AI-powered applications threatens to further erode readership. Additionally, news anxiety, avoidance, and fierce competition for advertising dollars have compounded the difficulties faced by these media outlets. Analyst and media entrepreneur Ken Doctor notes that billionaire owners in the news industry are exhibiting signs of fatigue, as losing money year after year is a daunting prospect, even for the wealthiest individuals.

In conclusion, the aspirations of billionaire owners to revitalize the news industry have been met with significant challenges. Despite their substantial investments and expertise, publications like The Washington Post, The Los Angeles Times, and Time magazine continue to struggle financially. While success stories exist, the overall landscape for traditional news organizations remains challenging. The path to profitability and sustainability in the digital age requires innovative strategies, adaptability, and a deep understanding of the evolving media landscape.

See first source: New York Times

FAQ

1. Who are the billionaires mentioned in the article who have acquired media outlets?

The billionaires mentioned in the article are Jeff Bezos, Patrick Soon-Shiong, and Marc Benioff.

2. Which media outlets did Jeff Bezos, Patrick Soon-Shiong, and Marc Benioff acquire?

Jeff Bezos acquired The Washington Post, Patrick Soon-Shiong purchased The Los Angeles Times, and Marc Benioff bought Time magazine.

3. What was the initial optimism when these billionaires acquired media outlets?

There was a sense of cautious optimism that their business acumen and tech know-how would lead to innovative solutions for generating revenue in the digital era.

4. Have these billionaire owners been successful in turning a profit for their media outlets?

No, despite substantial investments and efforts to diversify revenue streams, these publications, including Time, The Washington Post, and The Los Angeles Times, have incurred significant losses.

5. What challenges have these billionaire owners faced in the news industry?

These billionaire owners have faced challenges related to financial losses, declining subscriptions, and the need for profitability. They have also encountered tensions with editorial and business priorities.

6. Are there any success stories among billionaire-owned news organizations?

Some success stories include The Boston Globe, owned by John W. Henry, which has been profitable for several years, and The Atlantic, purchased by Laurene Powell Jobs, which aims for profitability with a significant subscriber base.

7. What are the challenges intensifying the struggles of billionaire-owned news organizations?

Challenges include dwindling web traffic, competition from AI-powered applications, news anxiety, avoidance, and fierce competition for advertising dollars. These factors make it increasingly difficult for media outlets to thrive.

8. How are billionaire owners in the news industry reacting to ongoing financial challenges?

Many billionaire owners are showing signs of fatigue as they continue to lose money year after year. The prospect of sustained financial losses is daunting, even for the wealthiest individuals.

9. What is the key takeaway from the article regarding billionaire-owned media outlets?

The aspirations of billionaire owners to revitalize the news industry have been met with significant challenges. While some success stories exist, the overall landscape for traditional news organizations remains challenging in the digital age.

10. What is required for media outlets to achieve profitability and sustainability in the digital age?

Achieving profitability and sustainability in the digital age requires innovative strategies, adaptability, and a deep understanding of the evolving media landscape.

Featured Image Credit: Photo by Bank Phrom; Unsplash – Thank you!

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Some of the biggest companies in the world began along these lines. Airbnb, Facebook, Instagram, and others all had the “startup” moniker at one point. They were able to grow and evolve because they were young and exciting. They presented fresh, new ideas to the industries they were targeting.

The same is often true in the world of real estate. At any given moment, there are eagle-eyed companies ready and waiting to come in and disrupt what we know to be true about the industry in the best possible way. Right now, there are a few key startups making waves in real estate, all of which are worth paying attention to in the new year and beyond.

1. DealMachine

By far, one of the most interesting startups making waves in real estate today is an Indianapolis-based tech company called DealMachine. Dealmachine ranked #36 on Inc 5000’s list of fastest-growing companies in 2021, bringing in a yearly revenue of $12.9 million within their first four years in business. It stands out because of its disruptive approach, particularly regarding things like wholesale real estate.

At its core, DealMachine is a platform built to streamline the property prospecting process. It leverages not only artificial intelligence but also powerful data analytics to benefit users. People can quickly and efficiently identify lucrative real estate opportunities quickly and efficiently in a way that was unthinkable even as recently as a few years ago.

Again, think about things within the context of wholesale real estate. To make money, you need to be able to identify opportunities that are viable to both a buyer and a seller. Only by getting the seller to agree to one price and the buyer to agree to a higher one will you be able to generate income for yourself. This doubles the amount of work needed over a traditional real estate investment. Any opportunity to simplify that process and make it more efficient is worth taking advantage of, and DealMachine goes a long way toward accomplishing that.

DealMachine also sports a user-friendly interface, further simplifying essential tasks like lead generation and management. Overall, it’s a great way to empower real estate professionals to optimize their workflows (and their revenue) as much as possible.

2. Matterport

Matterport is a real estate startup specializing in virtual reality – a technology that has impacted the field for many years. It became especially important during the COVID-19 pandemic when in-person property showings essentially became impossible for a period of time. The goal of a showing is always to help people visualize what it might be like to inhabit a space. Thanks to VR, it’s easier than ever to do that without being there.

Matterport uses VR for virtual property tours. People can explore properties in a way that is both immersive and interactive. Even though the pandemic is thankfully winding down and in-person showings have become the new norm again, this is still key. If you’re planning on moving across the country, you still want to feel confident in the place you’ve chosen to live. However, it isn’t necessarily in the budget to make constant trips back and forth to see a home with your own two eyes. Now, virtual reality allows for the next best thing. For real estate professionals, it also increases the size of their target audience to practically anyone, regardless of where they currently live.

3. Fractional

Over the last two decades, social media has evolved from a simple novelty into one of the dominant forms of communication on the planet. Sites like Facebook and Twitter/X have literally billions of users between them. It’s changed how we interact, keep in touch with our friends and family members, and even how we work.

That’s what makes Fractional a worthy inclusion on any list of the tech startups making waves in real estate. It’s a social media platform that allows like-minded individuals to co-invest in properties. It also acts as a viable way for those professionals to build their network.

Fractional acts as a one-stop shop for people to learn as much as possible about real estate. They can join communities, attend events, and even explore specific projects that may capture their interest. Once they’ve selected a project, they’re connected with others who are eager to capitalize on the opportunity in front of them. All due diligence is handled through the platform so everyone can operate confidently.

In essence, it’s a way to participate in investment opportunities that may have otherwise been impossible. Perhaps you have the money to invest but aren’t sure how or even where to start. Maybe you are great at identifying opportunities but have never been able to raise the money needed to begin. By building upon the principles of social networking as a concept, Fractional acts as a viable way to solve both challenges simultaneously. Moving forward, it will absolutely shift the way we think about real estate investing in a bold new direction.

Innovative Companies Like These are Changing the Real Estate Landscape

Overall, startups like these are exciting because they’re disruptive. As any industry ages, it naturally begins to stagnate. There’s less of a constant drive for innovation and more of an increased demand for profits. Things stay at a level of status. This isn’t necessarily a bad thing – but it certainly isn’t pushing the envelope, either.

However, companies like those outlined above are poised to change all that. These technology-driven ventures exemplify what makes real estate great and the potential of where it is all headed. They push the needle towards greater efficiency, better accessibility, and innovation in reshaping the future of the field.

They’re doing what they should be: leveraging technology to redefine everything from property management to investment strategies to the very nature of the client experience. When you think about how much real estate has evolved in even as few as the last five years, it’s safe to say that things will look dramatically different just five years from now. It’s the companies like those named above that we will all have to thank for that.

Featured image provided by Pixabay; Pexels; Thanks!

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A Thing Called New Year’s Resolutions

Our culture’s reliance on New Year’s resolutions is profound. It’s a time for looking back on the previous year and making plans for the next one. Forbes Health-OnePoll found that among Americans, nearly half set a goal to be more physically active in the new year. Fitness centers and gyms, which cater to people’s health, stand to gain a lot from this uptick in interest.

Jumping on the Fitness Industry Trend

New York Sports Club and other fitness businesses rely on January as a pivotal month for client acquisition. People are more motivated to focus on wellness and weight loss after the indulgent holiday season. By providing discounted memberships, New York Sports Club takes advantage of this opportunity to attract new users. They hope that by signing up these new members, they will become regulars who will keep paying the regular membership fee. The organization is reworking its referral and incentive-based rewards programs and offering free orientation sessions with trainers to guarantee retention.

Talkspace for Mental Health

Seeing a therapist at the beginning of the year is common, especially after the holidays when people are still recovering from spending time with loved ones. Talkspace, an online platform for mental health counseling, capitalizes on this fad by funding ads centered around resolutions. To assist users in making resolutions for the new year, they have teamed up with Michael Phelps, an American Olympian. The objective of Talkspace is to cultivate both one-time and repeat customers. The number of therapy sessions covered by insurance increased by 34% in Q1 2023 compared to Q22.

Money Management and Objective Establishment

At the start of a new year, many individuals take stock of their spending patterns and establish long-term financial objectives. This is the peak enrollment season for worldwide digital budgeting platforms like YNAB and Quicken. In January, YNAB usually sees a 25-50% increase, whereas Quicken sees about 15% of its customers. But for these businesses, annual customer retention and renewals are the lifeblood of sustainable revenue.

The Benefits of Learning a New Language

Apps that help people learn a new language, like Babbel and Duolingo, also gain popularity during the New Year’s resolution rush. Improving one’s self-improvement goals often includes learning a new language. Revenue in the first quarter of the year sees a dramatic increase on these platforms because of the sales and promotions that happen around the new year. January is Babbel’s busiest month, and it’s also when Duolingo sees its most significant spike in user growth.

Unconventional: Equinox’s Campaign Against New Year’s Resolutions

Equinox, a worldwide leader in health and fitness, avoids the marketing trap that most companies fall into when they target people’s New Year’s resolutions. One of their anti-New Year’s resolution initiatives, “We Don’t Speak January,” prohibits enrollment on the first of the year. They refuse to use new year’s resolutions as a sales tactic and instead highlight the importance of members’ dedication to health over the long haul. In spite of this nontraditional approach, Equinox continues to witness a robust increase in membership during the month of January, resulting in a surge in annual revenue.

Succeeding in the Long Run Despite Obstacles

A spike in sales relating to new year’s resolutions is inevitable, but long-term success is far from assured. There is a decline in interest in goal-related products and services because many people fail to follow through on their resolutions. In order to keep customers coming back, businesses need to figure out how to keep users engaged after the initial excitement wears off. Businesses can boost the likelihood of customer loyalty over the long run by providing personalized experiences, rewards programs, and continuous support.

Economic Awareness and the Significance of Promotions

In these economically uncertain times, sales and promotions leading up to the new year are more important than ever. Businesses must justify their prices by showing customers how their products and services will benefit them in the long run, especially as customers tighten their purse strings. Businesses can extend the time that new members spend investing in self-improvement beyond the first quarter by tailoring their messaging to the goals and requirements of their target demographic.

See first source: BBC

FAQ

What is the significance of New Year’s resolutions for businesses?

New Year’s resolutions present a significant opportunity for businesses to target consumers looking to improve themselves and their lives in the coming year. This includes fitness clubs, mental health platforms, language-learning apps, and personal finance tools.

Why is January a pivotal month for fitness clubs and gyms?

January is a pivotal month for fitness clubs because many people are motivated to focus on wellness and weight loss after the indulgent holiday season. Fitness centers like New York Sports Club offer discounted memberships to attract new users during this time.

How does Talkspace capitalize on the New Year’s resolution trend?

Talkspace, an online platform for mental health counseling, funds ads centered around resolutions and partners with figures like Michael Phelps to assist users in making resolutions. They aim to cultivate both one-time and repeat customers in the mental health space.

What happens in the financial management industry at the start of the new year?

At the beginning of the year, individuals often assess their spending patterns and set long-term financial objectives. This is the peak enrollment season for digital budgeting platforms like YNAB and Quicken, as people seek to manage their finances more effectively.

How do language-learning apps benefit from the New Year’s resolution rush?

Language-learning apps like Babbel and Duolingo see a surge in popularity during the New Year’s resolution period, as many people include learning a new language in their self-improvement goals. These platforms offer sales and promotions around the new year, resulting in increased revenue.

What unique approach does Equinox take regarding New Year’s resolutions?

Equinox, a leader in health and fitness, takes an unconventional approach by launching “We Don’t Speak January,” which prohibits enrollment on the first day of the year. They avoid using New Year’s resolutions as a sales tactic and emphasize long-term dedication to health.

How do businesses ensure long-term success with customers who make resolutions?

To achieve long-term success, businesses must keep users engaged after the initial excitement of making resolutions wears off. This can be done through personalized experiences, rewards programs, and continuous support to boost customer loyalty.

Why are sales and promotions leading up to the new year crucial for businesses in uncertain economic times?

In economically uncertain times, businesses must justify their prices by demonstrating how their products and services benefit customers in the long run. Sales and promotions help attract customers and encourage them to invest in self-improvement.

What strategies can businesses use to extend customer engagement beyond the first quarter of the year?

Businesses can extend customer engagement by tailoring their messaging to the goals and requirements of their target demographic. Providing personalized experiences, rewards programs, and continuous support can help keep customers invested in their self-improvement journey.

Are New Year’s resolutions a guaranteed source of revenue for businesses?

While there is a spike in sales related to New Year’s resolutions, long-term success is not guaranteed because many people struggle to follow through on their resolutions. Businesses must work on strategies to maintain customer engagement and loyalty over time.

Featured Image Credit: Photo by Tim Mossholder; Unsplash – Thank you!

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Journey of Shein’s IPO

The mainland Chinese e-commerce startup Shein, which launched in 2012, has chosen Morgan Stanley, Goldman Sachs, and JPMorgan Chase to spearhead its initial public offering (IPO). Although the exact amount and value of the deal have not been announced just yet, Bloomberg stated that Shein had aimed for a float of up to $90 billion. Sometime in 2024 is when the IPO is predicted to be launched.

The idea of going public has been considered by Shein before. The 2020 U.S. initial public offering (IPO) was shelved by the company. Nonetheless, it appears that Shein has been prompted to reevaluate due to the present state of the market and investor sentiment.

Obstacles in the IPO Market

Although the IPO market is experiencing difficulties, the decision to go public has still not been made. Major companies’ recent underwhelming stock market debuts have lowered investor excitement. These companies include Birkenstock, a German sandal maker, and Instacart, an app that delivers groceries. Nevertheless, Shein might discover an accommodating market for its initial public offering (IPO) given the upbeat mood among investors as of late.

Even though the market is tough, senior portfolio manager Jason Benowitz of CI Roosevelt thinks investors will be interested in Shein because of its growth history and future prospects for increasing its market share. He stresses that investors should look at Shein’s finances to see if it can keep growing.

The Regulatory Investigation of Shein’s Supply Chains

One reason Shein has been so successful in the fast fashion market is because of its novel direct shipping approach. Shein keeps unsold stock and U.S. import taxes to a minimum by handling shipments straight from China to individual customers. The company has been able to gain market share from more conventional retailers, such as Gap, by offering products at affordable prices, thanks to this strategy.

Nevertheless, this tactic has also drawn criticism. There have been allegations of forced labor in Shein’s supply chain, and in August, sixteen Republican attorneys general petitioned the Securities and Exchange Commission to investigate. This regulatory worry further complicates the path to Shein’s initial public offering.

Market Position and Shein’s Rivals

In terms of the percentage of visitors who actually make a purchase, fast fashion retailer Shein is still behind industry leader Amazon, despite its meteoric rise to prominence. Shein also faces competition from other websites, like Temu.com. To broaden its customer base, Shein has teamed up with SPARC Group, a partnership between Simon Property, owner of malls, and Authentic Brands, owner of Forever 21.

Many see Shein as a promising investment opportunity due to its innovative retail strategy, competitive pricing, and ability to provide customers with trendy, yet affordable, clothing.

How Shein’s IPO Will Occur

According to Aequitas Research analyst Sumeet Singh, peaking interest rates and possible changes in U.S. regulations for small retailers are factors influencing Shein’s decision to access the capital markets. According to Singh, Shein could benefit from going public at the moment.

Future Plans for Shein

Investors and the fashion industry will be watching Shein’s progress with its initial public offering (IPO) plans with great interest. Market circumstances, investor mood, regulatory scrutiny, and Shein’s capacity to sustain its growth trajectory are a few of the variables that will determine the IPO’s success.

This is a great moment for Shein to go public because, despite the difficulties experienced by the IPO market recently, there is positive investor sentiment and the company has the potential for strong historical growth. Investors will evaluate Shein’s capacity to keep growing its customer base and shaking up the fashion industry by looking at its financials.

See first source: Reuters

FAQ

What is Shein’s plan regarding an initial public offering (IPO)?

Shein, the Chinese e-commerce startup, has secretly filed for an IPO in the US, aiming for a float of up to $90 billion. The IPO is predicted to be launched sometime in 2024.

Why has Shein decided to pursue an IPO now?

Shein had considered going public before but shelved its plans. It appears that the present state of the market and investor sentiment have prompted the company to reevaluate its decision. Despite challenges in the IPO market, Shein believes it may find a receptive market for its IPO due to recent positive investor sentiment.

What are the obstacles Shein might face in the IPO market?

The IPO market has been challenging recently, with some major companies experiencing underwhelming stock market debuts. However, senior portfolio manager Jason Benowitz believes that investors may be interested in Shein due to its growth history and future prospects. He suggests that investors should closely examine Shein’s financials to assess its growth potential.

What regulatory concerns could affect Shein’s IPO plans?

Shein has faced allegations of forced labor in its supply chain, prompting sixteen Republican attorneys general to petition the Securities and Exchange Commission to investigate. Regulatory scrutiny of its supply chains could complicate Shein’s path to an IPO.

How does Shein’s market position compare to its competitors?

Shein, while experiencing rapid growth, is still behind industry leader Amazon in terms of the percentage of website visitors who make purchases. It also faces competition from other websites, such as Temu.com. Shein has partnered with SPARC Group to expand its customer base.

What factors will determine the success of Shein’s IPO?

The success of Shein’s IPO will depend on various factors, including market circumstances, investor sentiment, regulatory scrutiny, and the company’s ability to sustain its growth trajectory. Investors will closely assess Shein’s financials and its potential to continue expanding its customer base and disrupting the fashion industry.

Featured Image Credit: Photo by freestocks; Unsplash – Thank you!

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The State of China’s Property Market

China’s property market has long been a driving force behind the country’s economic growth. However, in recent years, the market has experienced increasing volatility and instability. The combination of excessive borrowing, overreliance on real estate investment, and an abundance of unsold properties has created a dire situation. As a result, the Chinese government is now facing the challenge of addressing the property crisis while avoiding a devastating collapse.

The Funding Shortfall

One of the most pressing issues in the Chinese property market is the massive funding shortfall. Estimates suggest that approximately $446 billion is needed to stabilize the industry and complete unfinished projects. This shortfall has put immense pressure on developers, who are struggling to secure the necessary funds to move forward with their projects. The government’s efforts to identify eligible developers for financial support is a crucial step towards resolving this funding gap.

Eligible Developers for Financial Support

To address the funding shortfall, Chinese policymakers are finalizing a list of 50 developers eligible for financial assistance. By providing support to distressed builders, such as Country Garden Holdings Co. and Sino-Ocean Group, the government aims to stabilize the industry and prevent any further disruptions. The inclusion of these prominent developers highlights the severity of the crisis and the government’s commitment to resolving it.

Increased Funding for Developers

In addition to identifying eligible developers for financial support, the Chinese government is putting pressure on banks to increase funding for developers. By urging banks to allocate more resources to the property sector, the government aims to minimize the risk of additional defaults and ensure that housing projects are completed. This approach reflects a shift in Beijing’s strategy, as it recognizes the importance of maintaining stability in the property market.

The Importance of Addressing the Property Crisis

The Chinese property crisis has far-reaching implications that extend beyond the real estate industry. Resolving the crisis is crucial for several reasons, including economic stability, social welfare, and the overall confidence of investors and businesses.

Economic Stability

China’s property market plays a significant role in the country’s economic stability. The industry contributes to job creation, infrastructure development, and overall economic growth. Therefore, addressing the property crisis is essential to ensure the continued stability and growth of the Chinese economy.

Social Welfare

The property crisis also has a direct impact on social welfare. The completion of unfinished apartment projects is crucial to address the housing needs of the population. Many families have invested their savings into these properties, and the failure to deliver on these projects would have severe social consequences. Resolving the crisis will not only provide much-needed housing but also restore faith in the government’s ability to protect the interests of its citizens.

Investor and Business Confidence

The property crisis has shaken investor and business confidence in the Chinese market. The uncertainty surrounding the industry has led to a decrease in investment and a reluctance to engage in real estate transactions. By taking decisive action to address the crisis, the Chinese government aims to restore confidence and attract both domestic and foreign investors. This renewed confidence will have a positive impact on the overall business climate and contribute to long-term economic growth.

Strategies to Address the Property Crisis

To tackle the property crisis and fill the $446 billion funding gap, Chinese policymakers are implementing a range of strategies. These strategies aim to provide immediate financial support to distressed developers, increase funding availability, and ensure the completion of housing projects.

Financial Support for Distressed Developers

The government’s decision to identify 50 developers eligible for financial support is a significant step towards stabilizing the industry. By providing assistance to distressed builders, the government aims to prevent further defaults and ensure the completion of crucial projects. This support will not only benefit developers but also protect the interests of homebuyers and investors.

Increased Funding from Banks

To address the funding shortfall, Chinese policymakers are urging banks to allocate more resources to the property sector. By increasing funding for developers, banks can help mitigate the risk of defaults and ensure that housing projects are completed. This measure reflects the government’s commitment to stabilizing the property market and maintaining economic stability.

Streamlining Approval Processes

To expedite the completion of housing projects, the Chinese government is also focusing on streamlining approval processes. By reducing bureaucracy and eliminating unnecessary delays, developers can proceed with their projects more efficiently. This streamlined approach will help address the backlog of unfinished apartments and alleviate the pressure on both developers and homebuyers.

Promoting Affordable Housing

In addition to addressing the immediate funding gap, the Chinese government is also prioritizing the promotion of affordable housing. By increasing the availability of affordable housing options, the government aims to address the housing needs of the population and ensure social stability. This approach will help alleviate the pressure on the overall property market and create a more balanced and sustainable housing sector.

See first source: Bloomberg

FAQ

Q1: What is the current state of China’s property market?

A1: China’s property market has been facing increasing volatility and instability due to factors like excessive borrowing, overreliance on real estate investment, and a surplus of unsold properties. It’s a challenging situation that the Chinese government is trying to address.

Q2: What is the funding shortfall mentioned in the article?

A2: The funding shortfall in China’s property market is estimated at approximately $446 billion. This shortfall represents the gap between the funds needed to stabilize the industry and complete unfinished projects and the funds currently available.

Q3: How is the Chinese government addressing the funding gap?

A3: The government is working to identify 50 developers eligible for financial support to address the funding gap. By providing assistance to these developers, they aim to stabilize the industry and prevent further disruptions.

Q4: Which prominent developers are mentioned as eligible for financial support?

A4: Industry giants like Country Garden Holdings Co. and Sino-Ocean Group are among the developers eligible for financial support. This underscores the severity of the crisis and the government’s commitment to resolving it.

Q5: How is the government encouraging banks to address the property crisis?

A5: Chinese policymakers are urging banks to increase funding for developers in the property sector. This increased funding is intended to minimize the risk of defaults and ensure that crucial housing projects are completed.

Q6: Why is it crucial to address the property crisis in China?

A6: Addressing the property crisis is vital for economic stability, social welfare, and investor and business confidence. The property market is a significant contributor to job creation and overall economic growth. Completing housing projects is essential to meet the housing needs of the population and restore faith in the government’s ability to protect citizens’ interests.

Q7: What strategies are being implemented to address the property crisis?

A7: To address the crisis and fill the funding gap, Chinese policymakers are providing financial support to distressed developers, increasing funding availability from banks, streamlining approval processes to expedite project completion, and promoting affordable housing options to create a more balanced housing sector. These strategies aim to stabilize the property market and ensure economic stability.

Featured Image Credit: Photo by Brandon Griggs; Unsplash – Thank you!

The post China’s Push to End Property Crisis and Fill $446 Billion Gap appeared first on SmallBizTechnology.

However, it can also be quite a risky move. How can you make sure the risks are minimal and that the business you purchase is a sound one? Here’s what you need to know.

Determine Why You Want to Buy the Business

As Simon Sinek would say, start with why.

Why do you want to buy a business in the first place? Do you want to earn a lot of money? Do you want to become a proficient CEO? Do you want to resell it in a couple of years for a certain profit?

Your motivation will help you choose the kind and size of business to shop for.

You should also consider the following:

• What industry should the business operate in? What kind of experience do you have in that industry, and what makes you think you will be able to run it well?
• How can you benefit from this purchase? Does the business have a loyal customer base? Do they have a patent? Are they operating with significant profits? What’s their marketing and sales network like?
• Can you run this business, and what will you need to do so? Will you need to hire new people and invest in production? Or will you need to lay people off and size down?
• Finally, ask why the business is for sale. This is a conversation you will need to have with the current owner(s). Don’t blindly trust what they tell you. Try to figure out whether there is a sinister reason they’re trying to unload the business or whether they’re just moving on to other ventures.

Assess the Value of the Business

Once you are quite clear on the reasons behind your decision to purchase a business, you need to determine its value.

If you are a financial expert, you can do this on your own. You will need access to a lot of the financial statements from the business itself, and you will also need to look at the brand’s reviews, online presence, competitors, and so on.

You can also hire someone to do the valuation for you, in which case you will have to spend some money upfront before you even decide whether or not you want to buy that particular business.

Note that just because a business is not currently profitable doesn’t mean that you can’t turn things around. With better management or marketing, you could quickly start to earn a significant profit. Consider how much risk you’re willing to take and how much effort you’re willing to invest in the growth of a business.

Assess the Health of the Industry

On top of examining the health of the business itself, you should also take a look at the health of the entire industry or sector.

You don’t want to invest in a niche that is about to go under or that is likely to experience financial or operational difficulties in the near future. This will only make your job harder, and if this is your first business, you want to make the ride as smooth as possible.

A good way to gauge the health of an industry is to check out the stock market. Let’s say you want to buy a manufacturing business. Take a look at the stock performance of stocks in the manufacturing sector. Examine both large and small companies and see how their shares are trending.

If you notice a sudden dip or rise, try to uncover its cause. It may be innocent enough (for example, a major broker may have spoken on the news about the best shares to buy), but it may also be a predictor of future trouble.

Choose the Ideal Financing Option

Once you’ve found the business you would like to buy, the question of whether or not you can afford it will naturally arise.

There are numerous ways you can finance your venture. Of course, you can put up your own money if you have enough laid by to complete the deal. You can also look for co-investors who will put up their own funds and help you run and manage the business.

You can look into getting a loan, too, especially if you need a significant financial boost to make the purchase happen. Different banks will have different interest and payment rates, so you should shop around and see who can offer the best deal.

Finally, you can also look at investors who only want to see a monetary return and would let you make all the decisions yourself. Finding good search fund investors can be a great option, as you can quickly get access to even large sums of money, helping you bridge the gap.

Close the Deal

Once you’ve found the business you want to buy, determined its value, and agreed on a fair price, you will need to handle the following steps:

• Craft and sign a bill of sale. This is the document that will prove the sale of the business, transferring ownership of all of its assets to you.
• Sign a new lease if you are also taking over business premises. The landlord should be able to negotiate new terms if they want to, and you need to make sure that the new terms suit the way you will manage the business.
• If the business has any vehicles registered, you will also need to take ownership of them. Make sure all relevant forms are signed at the time of sale.
• If the business has any patents, or more likely, trademarks and copyrights, you will need to sign several forms to transfer them to you.
• You should also ask the former owner to sign a non-compete. This is standard practice, and it can save you a lot of trouble down the line. A non-compete means that the previous owner won’t be able to start a competing business right across the street from you, so to speak.
• In case the former owner is staying on as an employee, make sure you sign all the proper contracts and agreements with them at the time of sale.
• Check to see how you need to handle any employment contracts with all the other employees, too, or if they will remain in force as they stand.

Wrapping Up

Now that you know how to determine whether a business is a sound investment or not, you can start looking at businesses for sale. Remember to carefully vet all information, double-check figures, and think each step through. It’s a major decision you’re making, so take as much time as you need to ensure you’re making the right one.

Featured image provided by Andrea Piacquadio; Pexels; Thanks!

The post Buying an Existing Business: Here’s What You Need to Know appeared first on SmallBizTechnology.

The Rise and Fall of WeWork

WeWork emerged as a major player in the office-sharing industry, captivating investors and reaching a valuation of $47 billion in 2019. However, its journey towards bankruptcy can be traced back to its failed attempt to go public five years ago. Despite its initial success, the company faced numerous challenges, including the sudden termination of leases by clients and the economic slump triggered by the COVID-19 pandemic.

WeWork’s Valuation and Failed IPO

WeWork’s staggering valuation of $47 billion in 2019 made headlines and attracted attention from industry experts and investors alike. Led by Masayoshi Son’s SoftBank, the company seemed destined for success. However, its ambitions to go public were thwarted, causing significant setbacks.

The COVID-19 Pandemic’s Impact

The onset of the COVID-19 pandemic proved to be a turning point for WeWork. As companies faced economic uncertainties, many opted to terminate their leases, dealing a severe blow to WeWork’s revenue streams. This mass exodus of clients further exacerbated the company’s financial troubles.

WeWork’s Debt and Restructuring Efforts

WeWork’s financial struggles became apparent when it disclosed its total debts of $18.65 billion against total assets of $15.06 billion. To address its financial woes, WeWork entered into agreements with the majority of its secured note holders and filed for Chapter 11 bankruptcy protection. This filing is limited to WeWork’s locations in the U.S. and Canada, as specified in their press release.

The Road to Recovery

WeWork’s CEO, David Tolley, expressed gratitude for the support of the company’s financial stakeholders as they work towards strengthening its capital structure. Tolley emphasized WeWork’s commitment to investing in its products, services, and employees to support its community. Despite the challenges, WeWork aims to rebuild and regain its position in the office-sharing market.

Implications of WeWork’s Bankruptcy

WeWork’s bankruptcy filing has significant implications for its stakeholders, employees, and the office-sharing industry as a whole. Creditors will play a crucial role in determining the company’s future, while employees may face uncertainties regarding their jobs and financial stability. Additionally, the bankruptcy of such a prominent player in the industry sends shockwaves throughout the office-sharing market, raising questions about its long-term viability.

Lessons Learned and Future Prospects

WeWork’s downfall offers important lessons for both entrepreneurs and investors. The company’s rapid rise and subsequent collapse serve as a cautionary tale about the dangers of overvaluation and the importance of sustainable business models. Moving forward, the office-sharing industry may undergo significant transformations, with a greater focus on adaptability and resilience.

See first source: CNBC

FAQ

Q1: What led to WeWork’s bankruptcy filing?

• WeWork’s bankruptcy filing can be attributed to a combination of factors, including its failed attempt to go public, the termination of leases by clients, and the impact of the COVID-19 pandemic on its revenue streams.

Q2: What was WeWork’s valuation at its peak, and what contributed to its initial success?

• At its peak in 2019, WeWork was valued at $47 billion. Its initial success was driven by significant investments, with SoftBank being a major investor. The company’s flexible office space model also attracted clients looking for shared workspace solutions.

Q3: How did the COVID-19 pandemic impact WeWork’s operations?

• The pandemic led to economic uncertainties, causing many companies to terminate their leases with WeWork. This mass exodus of clients significantly affected WeWork’s revenue and financial stability.

Q4: What were WeWork’s total debts and assets at the time of its bankruptcy filing?

• WeWork disclosed total debts of $18.65 billion against total assets of $15.06 billion at the time of its bankruptcy filing.

Q5: What are the implications of WeWork’s bankruptcy for its stakeholders and the office-sharing industry?

• WeWork’s bankruptcy has significant implications for creditors, employees, and the office-sharing industry. Creditors will play a crucial role in determining the company’s future, while employees may face uncertainties about their jobs and financial stability. The bankruptcy also raises questions about the long-term viability of the office-sharing industry.

Q6: What lessons can be learned from WeWork’s rise and fall?

• WeWork’s rapid rise and subsequent collapse serve as a cautionary tale about the dangers of overvaluation and the importance of sustainable business models. The experience highlights the need for adaptability and resilience in the business world.

Featured Image Credit: Photo by Melinda Gimpel; Unsplash – Thank you!

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The cornerstone of building financial security is starting now. Plus, the peace of mind that financial planning brings can also lead to greater decision-making as a founder. This article investigates five fundamental strategies entrepreneurs should embrace to ensure their financial well-being. These tips act as a guide for those entrepreneurs seeking future prosperity, security, and a tranquil retirement.

Diversify Your Assets

Diversification is the cornerstone of a robust financial portfolio. Entrepreneurs should extend their investment horizons beyond their business realms. According to a 2021 report by Fidelity Investments, a diversified portfolio can yield a 5.2% higher return compared to single-asset class investing. Diversification not only shields entrepreneurs from the turbulence of the market but also fuels the engine of financial growth.

A balanced mix of assets, including equities, bonds, real estate, and alternative investments, curtails risk and promotes growth. By embracing a diversified approach, founders are better equipped to capitalize on diverse sources of income, bolster their financial strength, and ensure their investments remain resilient against the erosive effects of inflation.

Simplify Retirement Planning With Annuities

While maxing out tax-deferred accounts such as an IRA is a start, founders often don’t have access to company retirement plans that would come with working for a large company. Instead, annuities can help make up for the gap. As underscored by Ty Young, CEO of Ty J. Young Financial, annuities emerge as a potent tool in the entrepreneur’s financial plan. “A crucial part of retirement planning is planning for the black swan events that we know, historically, are going to come,” opines Young. In a landscape marred by uncertainties, annuities offer a haven, safeguarding entrepreneurs against market vagaries while delivering consistent returns.

In the current financial landscape, “A fixed annuity will pay you a guaranteed rate of 5% that you can get for 3-5 years,” informs Young. Fixed index annuities, standing tall in the annuity space, have historically averaged a return of 6-8%. In the capricious waters of market volatilities and economic uncertainties, these financial instruments carve a path of stability and consistent growth for business owners.

Invest in Real Estate

Real estate stands as a tangible, lucrative investment channel offering both income and capital appreciation. According to the National Association of Real Estate Investment Trusts, real estate investments have delivered an annualized return of 9.4% over the past two decades, outshining the broader equity market.

In recent years, the integration of AI in real estate has been extremely useful in helping novice investors find and calculate the value of their investments. If you are hesitant to dive into this realm of investing, utilizing AI tools can help you gain the knowledge and expertise needed. For entrepreneurs, real estate can augment wealth and offer a steady income stream, amplifying financial security.

Be Strategic With Tax Planning

Tax planning, often relegated to the annals of obligatory compliance, can emerge as a potent ally in wealth accumulation. Entrepreneurs should consider maximizing contributions to tax-advantaged retirement accounts like IRAs and 401(k)s.

In addition to making sound investment decisions, properly planning for tax season for your business cannot be overstated. A report from the Tax Policy Center highlights that strategic tax planning can boost net income by up to 20%, a significant leap in the journey toward financial opulence.

Many entrepreneurs make the fatal error of burning through profits without setting aside funds for income tax. Doing so ultimately puts the business and business owner in a bind when the tax bill comes due.

Plan Ahead with Liquid Reserves

Entrepreneurs are no strangers to the tumultuous waters of financial uncertainties. A liquid emergency fund, equating to six to twelve months of living expenses, can be the anchor amidst business downturns and personal financial exigencies.

A 2022 survey by Bankrate revealed that a robust emergency fund was the linchpin that upheld the financial integrity of 45% of American households during economic upheavals. Having a well-planned liquid emergency fund not only provides a safety net during challenging times but also offers the peace of mind necessary for entrepreneurs to focus on their business growth. It acts as a financial lifeline, allowing them to weather storms with confidence and navigate unforeseen obstacles with resilience.

Protect Your Future With Sound Financial Planning

The entrepreneurial journey, marked by innovations, disruptions, and financial oscillations, demands a meticulous, strategic approach toward personal finance. Entrepreneurs need to weave diversification, annuities, real estate, tax efficiency, and liquidity into their financial blueprint.

Such a holistic approach not only catalyzes wealth accumulation but also scripts a narrative of financial security, prosperity, and a tranquil retirement. In the eloquent symphony of entrepreneurship, personal financial acumen plays a pivotal note, echoing the harmonious tunes of affluence and security long after the curtains of active business engagement have descended.

Featured image provided by Andrea Piacquadio; Pexels; Thanks!

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The Fed’s Current Stance and Wall Street’s Concerns

The Federal Reserve has not made any changes to interest rates since July, and many analysts expect that trend to continue in the upcoming announcement. However, investors are closely watching for any indications of a change in the Fed’s higher-for-longer approach to rates. There is growing speculation that the central bank may consider a rate hike as early as next month, which has contributed to the sense of unease in the markets.

The Treasury Department’s Role and Market Volatility

Before the Fed’s announcement, market participants will also be closely monitoring the Treasury Department’s quarterly refunding update. This update provides insights into the government’s borrowing plans for the coming months. Ordinarily, this announcement would be routine, but it comes at a time of significant tension in the bond market.

Last month, yields on 10-year Treasury notes reached a 16-year high as investors offloaded their bond holdings. This surge in yields has led to higher borrowing costs for consumers and businesses. The Treasury Department’s decision to auction off more than $1.5 trillion in debt over the next six months has raised concerns about potentially adding more volatility to both the stock and bond markets.

What to Expect from Jay Powell’s Remarks

Investors will be closely parsing the words of Federal Reserve Chair Jay Powell as he discusses the outlook on interest rates and the economy. The language he uses to describe the rates outlook will be of particular interest, as it may provide clues about the central bank’s future actions.

At the September meeting, Fed policymakers indicated that they saw room for another rate increase if inflation rebounded. Since then, there have been indications of strong growth in hiring and consumer spending. The latest wage data also showed elevated employment costs, suggesting that efforts to tame inflation may take longer than initially expected.

Diverging Views on Future Rate Hikes

There is a range of opinions on what the Fed’s next move will be. Economists at Vanguard and Bank of America believe that the central bank will have to raise interest rates again to counter inflationary pressures. However, Mohit Kumar, chief financial economist at Jefferies, suggests that the bar for another rate hike is high.

There is more consensus, however, that interest rates will remain higher for an extended period. The futures market is currently pricing in a 50-50 chance that the Fed’s first rate cut will not happen until next June. Additionally, the prime lending rate is expected to remain at or above 5 percent through next year.

Economic Implications and Market Response

The Fed’s decision on interest rates and any accompanying remarks from Jay Powell will have significant economic implications. Changes in rates can impact borrowing costs for individuals and businesses, which in turn can influence spending, investment, and overall economic growth.

The stock and bond markets are likely to react to the Fed’s announcement, with the potential for increased volatility. The S&P 500 recently experienced its third consecutive losing month, partly due to concerns about the Israel-Hamas conflict’s impact on global growth. U.S. Treasuries have also experienced six consecutive months of selling, highlighting investors’ unease.

Other Influencing Factors and Global Efforts

Beyond the Fed’s decision, there are other factors at play that could impact the global economy. For example, Vice President Kamala Harris recently proposed new A.I. rules, emphasizing the need for global norms and regulations for the technology’s military use. Chinese scientists have also called for an international regulatory body to address the risks associated with artificial intelligence.

Additionally, the WeWork saga continues as the embattled co-working company reportedly plans to file for bankruptcy. This development follows a missed bond interest payment, marking a significant decline in the company’s fortunes over the past few years. The closure of a major British hedge fund due to sexual misconduct allegations against its founder also highlights ongoing challenges in the financial industry.

See first source: NY Times

FAQ

What is the anticipation regarding the Federal Reserve’s decision on interest rates?

Investors are keenly awaiting the Federal Reserve’s decision on interest rates as it could significantly impact the global economy. There’s growing anxiety among Wall Street about a possible shift in the central bank’s strategy.

Has the Federal Reserve changed the interest rates recently?

No, the Federal Reserve has not altered the interest rates since July, with many expecting this trend to continue in the upcoming announcement.

What speculation is causing unease in the markets?

Speculation that the central bank may consider a rate hike as early as next month is causing a sense of unease in the markets.

What role does the Treasury Department play in this scenario?

The Treasury Department’s quarterly refunding update, which reveals the government’s borrowing plans, is closely monitored by market participants. Its decision to auction off more than $1.5 trillion in debt over the next six months has raised concerns about potential volatility in the stock and bond markets.

How might Jay Powell’s remarks impact investors’ outlook?

Investors will scrutinize Federal Reserve Chair Jay Powell’s words on interest rates and economic outlook, as his language may provide clues about the central bank’s future actions.

What are the diverse views on future rate hikes?

While some economists believe that the Fed will need to raise interest rates again to counter inflationary pressures, others suggest that the bar for another rate hike is high. However, there’s a consensus that interest rates will remain higher for an extended period.

What are the potential economic implications of the Fed’s decision on interest rates?

Changes in interest rates can affect borrowing costs for individuals and businesses, influencing spending, investment, and overall economic growth. Market reactions could include increased volatility in the stock and bond markets.

How are global developments influencing the economic outlook?

Other global developments, such as proposed A.I. rules by Vice President Kamala Harris and calls for international regulatory bodies for A.I., along with ongoing financial industry challenges like the WeWork saga and the closure of a major British hedge fund, also play a part in the broader economic outlook.

How are the markets currently reacting to economic factors?

The S&P 500 recently saw its third consecutive losing month partly due to global growth concerns stemming from the Israel-Hamas conflict, and U.S. Treasuries have experienced six consecutive months of selling, showcasing investors’ unease.

What is the anticipated timeline for a possible rate cut by the Fed?

The futures market is currently pricing a 50-50 chance that the Fed’s first rate cut will not occur until next June, with the prime lending rate expected to remain at or above 5 percent through next year.

Featured Image Credit: Photo by Markus Spiske; Unsplash – Thank you!

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Keeping up with criminal attacks on financial industries becomes more difficult because of new ways of creative ways of money laundering, more complex regulatory mandates that limit what businesses can do, and the technological capabilities of your competitors. That’s why many experts recommend AI applications for evening the playing field. The benefits of artificial intelligence usage in finance include:

• Personalizing financial products and services
• Creating business opportunities based on speed
• Automating operations
• Managing risk and fraud
• Fostering better compliance and transparency
• Reducing costs
• Enabling faster communications and processing

There’s no end in sight for all the benefits of generative AI applications.

AI Application in Finance

The potential of AI to transform financial services and improve efficiency, security, and customer experience. The possible use of AI financial service applications has reached a watershed moment in time that can transform the industry and set new highs for efficiency, security and the crucial customer experience. Artificial intelligence use cases have become widespread within the financial industry within a fairly short time, and the sky’s the limit for new applications from creative, focused companies like financial software development services. Five of the top uses include the following uses.

1. Fraud Detection and Prevention

Advanced software algorithms can change the scope of fraud. Enhancing AI efforts for social engineering creates vast opportunities for fraudulent scams. It’s important to protect your company with your own fraud detection software. Ideally, proper software works proactively to detect and prevent actions that might expose your company to criminal fraud.

2. Algorithmic Trading

You can’t keep up manually with trades that often earn small profits many times a day or even a fraction of a second. AI use cases in finance favor algorithm trading that takes place in fractions of a second. The opportunities come from the speed, adaptability, and accuracy of AI-generated trades. Many brokers and investors already use AI for its predictive analytics and real-time access to data.

3. Chatbots for Customer Service

If you visit many websites, you already know that chatbots have taken a major hold over customer service in all industries. Financial services can use chatbots to answer queries, manage accounts, and provide customer support in the fast-moving financial industry where people want immediate answers. Chatbots generate cost savings and improve the customer experience. Using these chatbots boosts customer service, saves money spent on human customer service reps, and creates a clear trail of everything to address the situation.

4. Credit Scoring and Risk Assessment

AI can analyze more data tailored to specific demographic groups to assess a person’s creditworthiness for business or personal loans. The same tools also work for assessing risk management, which insurance companies and other financial concerns make to underwrite policies and expedite important decisions.

5. Personalized Financial Advice

AI-driven robotic advisors have the unique ability to analyze vast amounts of data to create personalized financial reports and provide investment advice on the current market and the investor’s goals.

Uses for generative AI for personalized financial services include:

• Developing financial forecasts and budgets using predictive analytics, modeling, and hypothetical market scenarios.
• Providing financial insights to businesses researching trends and how to capitalize on them.
• Using AI to produce financial insights and commentary
• Cutting the time needed to produce business reports on-demand, recurring reports, and information for special projects
• Automating intelligence gathering by creating predictive templates for any market upheaval
• Leveraging generative AI’s vast language model for more access to a wide cross-section of public opinion for generating slanted market insights, competitive intelligence, and personalized analyses
• Analyzing data for CRM and ERP applications to provide personalize marketing strategies
• Managing customer business contracts to trigger alerts when terms expire] and provide data on any customer service issues
• Detecting errors, fraud signs, and financial anomalies

Summary of Using AI Intelligently for Business

Many firms from all industries now invest in AI software to meet their goals, which tend to be virtually unlimited. Creative use of AI solutions for the financial service industry generates tangible, measurable, and verifiable results. Like any new technology, there must be integration with human-based staff, the company’s culture, and extant technology.

Failing to use AI resources in your financial business means that you could fall behind your competitors, risk large losses to fraud, and fail to capitalize on time-sensitive market opportunities. Your customers expect you to execute their business securely and efficiently with the latest financial tools available. The only way to do that in the backbiting financial services industry is to stay ahead of the game with your own AI software.

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Impact on Nvidia Stock

Nvidia’s stock fell to as low as $392.30, down 4.7%, which is the lowest level it has reached since mid-June. The stock, which has been a major driver of this year’s 22% gain in the Nasdaq index, is now down nearly 20% from its record high close of $493.55 reached on August 31. However, some experts believe that the stock is getting oversold and that the impact of the export restrictions may be more long-term than short-term. Tom Plumb, the CEO and lead portfolio manager at Plumb Funds, stated that he still expects a strong quarter from Nvidia and considers it a great long-term holding despite the current volatility.

New US Government Export Restrictions

The Biden administration recently imposed export restrictions on shipments of AI chips designed by Nvidia and others to China. The move is aimed at preventing Beijing from acquiring cutting-edge US technologies that could potentially strengthen its military capabilities. These new rules, which go into effect in November, also include export controls to countries such as Iran and Russia.

Nvidia’s Response and Future Outlook

Nvidia has stated that there is “high demand” for its advanced chips, which often require significant lead time to build. The company is working to allocate orders to its wide range of customers in the United States and other countries. Furthermore, Nvidia’s spokesperson has reassured that the new export controls will not have a meaningful impact in the near term.

However, some analysts believe that Nvidia’s stock may be priced too high and that any deviation from perfection could have a major impact. Thomas Hayes, the chairman at Great Hill Capital, stated that when a stock is trading at 20 times sales and 40 times earnings, even a slight stumble can be significant.

Key Takeaways

• Nvidia’s stock dropped by around 5% to a near five-month low following reports of potential order cancellations worth up to $5 billion to major Chinese technology companies.
• The cancellations are in compliance with new US government restrictions on the export of AI chips to China.
• The stock is down nearly 20% from its record high close in August, but some experts believe it is oversold and that the impact may be more long-term than short-term.
• The Biden administration imposed export restrictions on AI chip shipments to China to prevent the country from acquiring advanced US technologies.
• Nvidia has reassured that the new export controls will not have a meaningful impact in the near term.
• Some analysts believe that Nvidia’s stock may be priced too high, which makes it vulnerable to any deviation from perfection.

See first source: Reuters

FAQ

What caused the drop in Nvidia’s stock?

Nvidia Corp’s stock dropped by approximately 5% following reports of potential order cancellations worth up to $5 billion to major Chinese technology companies due to new US government export restrictions.

How significant was the drop in Nvidia’s stock price?

The stock plummeted to a near five-month low of $392.30, which is a 4.7% decrease, marking the lowest level since mid-June.

Who are the Chinese companies affected by the order cancellations?

The major Chinese technology companies affected include Alibaba Group, ByteDance (owner of TikTok), and Baidu.

What are the new US government export restrictions?

The Biden administration imposed export restrictions on shipments of AI chips designed by Nvidia and others to China to prevent Beijing from acquiring cutting-edge US technologies that could potentially strengthen its military capabilities.

When do the new export restrictions go into effect?

The new export restrictions are set to go into effect in November.

What has been Nvidia’s response to the new export restrictions?

Nvidia stated there’s “high demand” for its advanced chips and is working to allocate orders to a wide range of customers in the US and other countries. They also reassured that the export controls will not have a meaningful impact in the near term.

What are some experts saying about Nvidia’s stock and the impact of export restrictions?

Some experts believe the stock is getting oversold and the impact of export restrictions may be more long-term. Tom Plumb expects a strong quarter from Nvidia and considers it a great long-term holding despite the volatility.

Featured Image Credit: Photo by BoliviaInteligente; Unsplash – Thank you!

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Ford’s Third-Quarter Results Miss Expectations

Ford’s revenue and profit for the third quarter of the year did not meet analysts’ expectations, leading to a sharp decline in the company’s stock price. The missed estimates were primarily attributed to the strike initiated by the UAW at three of Ford’s crucial U.S. factories, including an important truck factory in Kentucky. The lost production during the strike significantly impacted Ford’s financial performance for the quarter.

In contrast to Ford’s disappointing results, rival General Motors (GM) reported robust revenue and profit figures that exceeded Wall Street estimates. This disparity in performance further raised concerns among investors about Ford’s ability to effectively compete in the automotive market.

Impact of UAW Strike on Ford’s Financials

The strike by the UAW had a substantial impact on Ford’s financials for the third quarter. The lost production resulted in lower revenue and profit figures, as the company struggled to meet customer demand. However, there was a glimmer of hope as Ford became the first of the three Detroit automakers to reach a tentative agreement with the UAW. This agreement allowed striking workers to return to their jobs before the new deal was officially ratified.

While this agreement is a positive development for Ford, it comes at a cost. CFO John Lawler revealed that if the UAW deal is ratified by members, it will add $850 to $900 in costs to every vehicle assembled in the U.S. This additional expense puts pressure on CEO Jim Farley’s ongoing efforts to improve Ford’s costs and quality.

Delay in EV Manufacturing Capacity Spending

Another significant announcement made by Ford was the decision to delay approximately $12 billion in previously announced spending on EV manufacturing capacity. The company cited a shift in customer preferences in North America, stating that customers are no longer willing to pay a premium for an EV vehicle compared to a comparable internal-combustion or hybrid alternative.

Despite this delay, Ford made it clear that it is not cutting back on or postponing its plans to develop more advanced EVs. However, investors who are concerned about Ford’s ability to compete with Tesla and other new EV entrants were given another reason to be cautious. The decision to postpone spending on EV manufacturing capacity raises questions about Ford’s long-term EV strategy and its ability to capture a significant share of the growing EV market.

Uncertainty Surrounding Ford’s Future Performance

The disappointing third-quarter results and the challenges faced by Ford in the EV market have created uncertainty surrounding the company’s future performance. Ford’s stock decline reflects investors’ concerns about the company’s ability to navigate the rapidly changing automotive landscape.

Ford’s withdrawal of its previous financial guidance for 2023 in light of the pending deal with the UAW further adds to the uncertainty. The UAW agreement, while resolving the immediate strike issue, introduces additional costs for Ford and puts pressure on the company’s profitability.

See first source: CNBC

FAQ

1. Why did Ford’s third-quarter earnings fall short of analysts’ estimates?

Ford’s third-quarter earnings missed expectations due to a strike initiated by the United Auto Workers (UAW) at three of the company’s crucial U.S. factories. The lost production during the strike significantly impacted Ford’s financial performance for the quarter.

2. How did the UAW strike affect Ford’s financials?

The UAW strike resulted in lower revenue and profit figures for Ford, as the company struggled to meet customer demand during the strike. While Ford reached a tentative agreement with the UAW, it comes with added costs, potentially affecting the company’s financials in the future.

3. How does Ford’s performance compare to that of rival General Motors (GM)?

While Ford’s results fell short of expectations, General Motors reported robust revenue and profit figures that exceeded Wall Street estimates. This performance disparity raised concerns among investors about Ford’s competitiveness in the automotive market.

4. Why did Ford decide to delay spending on EV manufacturing capacity?

Ford postponed approximately $12 billion in spending on EV manufacturing capacity, citing a shift in customer preferences in North America. Customers are now less willing to pay a premium for EVs compared to internal-combustion or hybrid alternatives.

5. Is Ford reducing its commitment to EVs altogether?

No, Ford clarified that it is not cutting back on its plans to develop more advanced EVs. However, the decision to delay spending on EV manufacturing capacity has raised questions about Ford’s long-term EV strategy and its ability to compete effectively in the growing EV market.

6. What is the overall outlook for Ford’s future performance?

The disappointing third-quarter results, challenges in the EV market, and uncertainties surrounding the UAW agreement have created uncertainty about Ford’s future performance. The company’s stock decline reflects investor concerns about its ability to navigate the evolving automotive landscape and maintain profitability.

Featured Image Credit: Robin Mathlener; Unsplash – Thank you!

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The Q3 Results Have Been Better Than Anticipated

Coca-Cola beat expectations with its adjusted earnings per share of 74 cents. Adjusted sales for the year came in at $11.91 billion, well above the $11.44 billion projections. The success of the business is due to both strategic pricing and high consumer demand.

Up from $2.83 billion, or 65 cents per share in the third quarter of 2016, Coca-Cola reported $3.09 billion, or 71 cents per share in net income attributable to shareholders. Earnings per share were 74 cents, or what would have been the case if the company had not incurred transaction gains, restructuring costs, and other items. Revenue was up 8% to $11.91 billion after adjustments. Even more impressive was the 11% increase in organic revenue, which does not include the results of any mergers or sales.

Consumer Reaction to Pricing Strategies

Coca-Cola has increased prices over the past two years due to rising costs of raw materials. But in July, the company said it would hold off on additional price increases in the US and EU for the rest of the year. Customers have remained faithful to the brand despite the price hikes. Coca-Cola’s prices increased by 9% in the third quarter over the same period last year.

Strong consumer demand was reflected in a 2% increase in the company’s unit case volume in the quarter, before accounting for price and currency fluctuations. Coca-Cola has seen a slight decrease in demand, but its main rival, PepsiCo, has seen much bigger drops. Coca-Cola’s overall volume in North America stayed the same, but both Coke Zero Sugar and Fairlife dairy drinks saw growth in popularity. The volume of beverages sold by Pepsi in North America fell by 6% in the third quarter.

At-Home and Abroad Purchasing Habits

The non-retail segment of Coca-Cola’s business has expanded at a faster rate than the retail segment. CEO James Quincey claims that consumers are more likely to opt for the store brand when grocery shopping than when dining at a restaurant, theme park, or sporting event. Coca-Cola’s robust U.S. business and revenue can, in part, be attributed to this divide in consumer preferences.

Consumers in Europe have been cutting back on spending more than their American counterparts. Sales of Coca-Cola in Europe also took a hit as a result of the scorching summer weather. Meanwhile, the uneven pandemic recovery has hampered the company’s sales in China. Coca-Cola still anticipates a fruitful Lunar New Year in 2024, despite these setbacks.

Expansion of the Beverage Industry

Each of Coca-Cola’s beverage brands has seen volume increases. The company saw a 2% increase in volume across its sparkling soft drinks and juice, dairy, and plant-based beverage segments. Additionally, the water, sports, coffee, and tea divisions all saw volume increases of 1%. Consumers’ insatiable thirst for Coca-Cola’s many beverages is driving this expansion.

Improved Predictions for the Entire Year

Coca-Cola has improved its outlook for the entire year as a result of its strong performance in the third quarter. The company has raised its forecast for comparable earnings per share growth from 5% to 6% to 7% to 8%. Coca-Cola has also revised its forecast for organic revenue, now expecting growth of 10% to 11% rather than the previous range of 8% to 9%. The company’s financial performance is expected to improve in the future as a result of these optimistic forecasts.

Coca-Cola forecasts that currency fluctuations will be a mid-single digit headwind for the company in 2024. When it reports earnings for the fourth quarter early next year, the company plans to reveal the remainder of its 2024 outlook. These forecasts demonstrate Coca-Cola’s dedication to growth and its assurance that it can meet any challenges head-on.

See first source: CNBC

FAQ

Q1: What were Coca-Cola’s Q3 earnings and revenue like?

A1: Coca-Cola exceeded expectations with adjusted earnings per share of 74 cents and adjusted sales of $11.91 billion, surpassing projections.

Q2: What contributed to Coca-Cola’s success in Q3?

A2: The company’s success can be attributed to strategic pricing and high consumer demand for its beverages.

Q3: How did consumers react to Coca-Cola’s price increases?

A3: Despite price hikes of 9% in the third quarter, consumers remained loyal to Coca-Cola, reflecting strong demand for its products.

Q4: How did Coca-Cola’s volume compare to its rival PepsiCo?

A4: While Coca-Cola’s volume in North America remained stable, PepsiCo saw a 6% decline in beverage sales in the same region.

Q5: What segments of Coca-Cola’s business have seen growth?

A5: Both at-home and abroad, Coca-Cola’s beverage brands have experienced volume increases across various segments, including sparkling soft drinks, juices, dairy, and plant-based beverages.

Q6: What is Coca-Cola’s revised outlook for the entire year?

A6: Coca-Cola has raised its forecast for comparable earnings per share growth to 7% to 8% and organic revenue growth to 10% to 11%, demonstrating confidence in its future financial performance.

Q7: What challenges does Coca-Cola anticipate in 2024?

A7: Coca-Cola expects currency fluctuations to be a mid-single digit headwind in 2024 but remains committed to growth and overcoming challenges.

Featured Image Credit: Pawel Czerwinsk; Unsplash – Thank you!

The post Coca-Cola’s Future Looking Promising appeared first on SmallBizTechnology.

That’s why the small business failure rate remains so stubbornly high in good economic times and bad. It’s why people tend to self-select into entrepreneurship based on their propensity to take risks — and why many risk-averse people with legitimately great ideas put those on the back burner in favor of the relative security (and lower socioeconomic ceiling) of a regular old job.

If you’re reading this, you’ve already decided to take the leap into small business ownership. You’re well aware of the risks. Now, you’re trying to manage them and give your business every possible advantage. You want your little enterprise not only to survive but to thrive.

Your business needs to be as financially efficient as possible for that to happen. Scratch that — your business needs to be financially optimized.

Smart Strategies to Boost Financial Efficiency in Your Small Business

Most successful businesses focus on three vital strategies to improve financial efficiency: streamlining lending and borrowing processes, simplifying payment processing, and managing cash flow more effectively.

1. Streamlining Lending Processes

If you’re in the business of extending credit, streamlining your company’s lending processes is not a “nice to have” capability. It’s mission-critical.

Simply scaling your existing lending operation won’t cut it. Hiring more loan officers may help you make more loans, but it won’t make your loan origination team more efficient. By adding layers of bureaucracy, it could have the opposite effect.

Instead, equip your lending team with the best available tools for the job. Take an unsparing look at your existing technology stack and ask not what needs to go but what — if anything — is worth saving. All too often, the answer is “absolutely nothing.”

And then it’s time to rebuild. Comprehensive loan origination solutions like MeridianLink Consumer offer scalable, cross-channel capabilities for lenders that need to implement uniform processes and protocols at scale. From application to underwriting to closing, these solutions help your team work smarter, not harder.

Not in the lending business? You almost certainly rely on some form of business credit to keep the lights on and the leads coming in. Knowing what you know now, you’d be remiss not to quiz your current lender(s) and any alternatives you’re considering about the back-end tools they use to get the job done. When minutes (and hundredths of a percentage point) matter, the old way of doing things is unacceptable.

2. Simplifying Payment Processing

The old saying, “A bird in the hand is worth two in the bush,” gets at a fundamental truth every business owner learns sooner or later. That is, it’s better to have a dollar today than two dollars at some point in the future.

Okay, maybe that’s taking things too far. A 50% discount rate is way too steep on any timetable that matters to a growing business. But every business is willing to accept a haircut if it means actually getting paid on time.

In the simplest terms, that haircut represents the amount you’re willing to pay for a more efficient payment processing solution, plus the unavoidable costs (person-hours, bookkeeping software, and so on) of managing accounts receivable and integrating payments into your company’s cash flow. The same principle applies to accounts payable, including payroll, especially if your business works with many independent contractors or small vendors willing to use your preferred payment processing solution to send bills and accept payment.

Your ideal approach depends on how your business earns its money and how (and to whom) it pays for the products and services it requires. The key variable is transaction volume — not just today, but expected volume in two, three, or five years. Payment processing solutions that are perfectly adequate for a comparative trickle of transactions may fall short when growth takes off.

So, look for a scalable payment processing tool that can grow with your business. For example, Dwolla specializes in high-volume account-to-account (A2A) transfers, often for users averaging just a few dollars per transaction. If your product involves bidirectional cash transfers (say, it’s a rewards app or has a built-in incentive structure), that’s precisely the capability you need.

3. Managing Cash Flow More Effectively

Your business possibly makes consumer or business loans. It may send or receive (or both) digital payments in high volumes and at high frequency.

But it definitely makes and spends money somehow. Which means it stands to benefit from more effective cash flow management.

You know this already, or you wouldn’t still be in business. What you might not (yet) know is how to get from “state the problem” to “implement the solution yesterday.”

The truth is, there’s no catch-all solution to the cash flow management problem. Different businesses solve it in different ways. There’s a lot to consider here, which is why you’ll find (and maybe have already read) encyclopedia-length books on the subject.

With the understanding that we’re only just scratching the surface here, let’s take a look at three aspects of cash flow management that nearly every business has to face at some point: efficient invoicing, intelligent expense management, and inventory optimization.

Financial Efficiency in Invoicing

If your business sends out more than a few invoices each month, it needs a scalable invoicing solution that cuts down the time cost of invoicing itself and helps your accounts receivable team stay on top of unpaid bills.

Unless you’re already off to the races, this solution needn’t be enterprise-grade or even close. Off-the-shelf software like Intuit QuickBooks is fully capable of juggling all those invoicing balls: onboarding new vendors, creating and sending invoices, receiving invoices generated through the API, and — of course — sending and receiving payments.

Intelligent Expense Management

Spreadsheet-based expense management and two-dimensional P&L templates work until they don’t. Before your business reaches that point, deploy a more robust solution to track, understand, and attack your expenses.

You don’t need an overly complicated enterprise solution here, either. In fact, QuickBooks works for millions of SMBs. It’s “smart” enough to tell you that, for example, you’re spending 25% more on inputs than the typical peer business, and its outputs are detailed enough to help you pinpoint opportunities to tame that overage.

Inventory Optimization

Like your expenses, your inventory gets complicated quickly as your business grows. It’s a nonlinear process that can quickly overwhelm your logistical capabilities and pose an existential risk.

Unlike invoicing and expense management, inventory optimization does require a truly robust solution, even at a relatively small scale. Once you’re past a few dozen SKUs, you’re competing against better-resourced businesses whose supply chain management budgets dwarf your gross revenue (for now, at least). You can skimp elsewhere — not here.

Your Small Business Can Do Better

Don’t take that personally. It applies not just to your small business and countless others like it but to some of the world’s biggest, best-run companies.

The iconic businesspeople behind some of the most successful companies in the world all know that they can do better. They ask themselves the same question at the start of each day: what can I do today to make my team just a tiny bit more efficient, effective, or productive?

Then they execute. And iterate. And debrief.

And do it all again tomorrow.

This is how great companies are built, not by leaps and bounds but by slow, sometimes painful trial and error.

Feature image provided by Pixabay; Pexels; Thanks!

The post Boosting Financial Efficiency: Smart Strategies for Small Businesses appeared first on SmallBizTechnology.

Using Contractors That Don’t Report Credit Activity

With all the advances in online technology, software, and web development, it’s never been easier for vendors to report credit activity when a small business makes a payment or does a transaction.

However, if you open a credit line with a vendor that doesn’t regularly report credit activity to the credit bureaus, you aren’t building credit the way you should. It’s important when researching contractors and vendors that you only do business with ones that will report your on-time transactions to major credit bureaus.

Not Using Business Credit

Some small business owners are so risk-averse, that they may not want to even use business credit. But getting business credit cards and taking out business lines of credit can be an effective means to scale the company and make more money.

If the small business never uses credit, it’s more difficult to expand your organization. Don’t make the mistake of never taking out business credit.

Business owners who are wary of having debt might just start small and get one business credit cards. Use it every month and pay it off. That way, you can slowly build business credit and not carry much if any debt.

Applying For Personal Credit Cards

One thing many small business professionals don’t know is that ‘business credit card’ you read about online is tied to your personal credit history. Many small businesses don’t have enough credit history to get approved based on their business, so the credit card company may use your personal credit profile to approve you.

You should read the fine print of any credit card you apply for to make sure that the credit line is based on your business and not your personal credit.

Putting Personal Property At Risk

When starting your business, it’s important to use the right legal entity to protect your personal assets from business creditors. That’s why you should never put your personal property or assets at risk when getting credit for your company.

It’s also usually unwise to be a sole proprietor and get business credit. You can do it, but you are personally liable for all debts of the business if something goes wrong. Also, as a sole proprietor, you don’t have a corporate tax ID; everything is based on your social security number and this leaves you legally exposed.

Selecting The Wrong Business Credit Card

Before applying, you should determine the kind of business credit card you want:

• Want to get rewards for purchasing office supplies? Apply for a cash back business credit card.
• Planning to take business trips to find new clients? Get a travel business credit card with air travel points.
• If you are just getting the company rolling, try to get a 0% interest card.

Mixing Business And Personal Expenses

So you got a business credit card to build credit and track your business expenses. But it’s easy to fall into the trap of mixing personal and business expenses, which can make it a lot harder to track your expenses when it’s tax time.

Also, you may lose the ability to deduct credit card and loan interest on your business taxes if you don’t use them only for your various business costs.

It also can be more challenging to maintain legal protections for your organization if you don’t separate your personal and business expenses.

There are many things to consider when building business credit for your small business. By following these simple principles, you’re more likely to build good business credit. And you’ll do so without mixing personal and business expenses or putting your personal credit on the line.

Featured image provided by Pixaby; Pexels; Thanks!

The post 6 Mistakes That Small Businesses Make That Damage Their Credit appeared first on SmallBizTechnology.

Background: FTC’s Regulatory Landscape

In recent years, the FTC has taken a more stringent approach to acquisitions across various industries, marking a departure from the previous light-touch approach. The lawsuit against Amgen was the FTC’s first legal challenge to a pharmaceutical buyout in 14 years and reflects a broader shift in the regulatory landscape. This change comes at a time when the pharmaceutical industry is experiencing a rebound in M&A activity, with companies spending over $80 billion on deals in the first half of 2023.

Amgen’s Acquisition of Horizon Therapeutics

Amgen’s $27.8 billion acquisition of Horizon Therapeutics faced regulatory scrutiny from the FTC. However, the recent settlement agreement allows the deal to move forward. The agreement includes certain restrictions, such as prohibiting Amgen from bundling its products with two of Horizon’s blockbuster drugs. Bundling typically involves offering discounts or rebates on existing products to incentivize insurers and benefit managers to prioritize specific drugs.

While some analysts believe these conditions are unlikely to significantly impact Amgen, as the company has stated it does not intend to bundle products, others see this as a potential precedent for future buyouts. The implications of these restrictions suggest that the FTC may apply similar rules to other acquisitions in the industry.

Impact on Other Pharmaceutical Deals

The FTC’s decision to settle the Amgen-Horizon acquisition has broader implications for other pending deals in the pharmaceutical sector. Wall Street analysts believe that the settlement eases regulatory headwinds and signals that other large-scale acquisitions could proceed relatively unscathed after reviews. One such deal is Pfizer’s proposed $43 billion purchase of Seagen, a cancer drug developer.

According to William Blair analyst Matt Phipps, the settlement materially mitigates regulatory challenges for the Pfizer-Seagen deal. The analyst expects the acquisition to close by the end of the year or early 2024. Truist analyst Robyn Karnauskas also views the settlement as a positive development for the M&A space in the sector. However, industry experts and analysts remain cautious, speculating that the FTC’s appetite for scrutiny may extend beyond the Amgen-Horizon deal.

Analyzing the Settlement Agreement

The settlement agreement between Amgen and the FTC allows for the acquisition to proceed, but it comes with certain conditions. The prohibition on product bundling is a significant restriction imposed on Amgen. By preventing the bundling of products, the FTC aims to ensure fair competition in the pharmaceutical market. The practice of bundling can create a disadvantage for competitors by leveraging existing products to favor specific drugs.

BMO Capital Markets analyst Evan Seigerman considers these conditions on the Amgen-Horizon deal to be a non-factor for Amgen, given the company’s stance on bundling products. However, the inclusion of these restrictions raises questions about the FTC’s future approach to other acquisitions in the industry. The regulatory environment is evolving, and it remains to be seen how the FTC will navigate this changing landscape.

The Future of M&A in the Pharmaceutical Industry

The settlement agreement between Amgen and the FTC has eased concerns surrounding the regulatory landscape for pharmaceutical M&A. While it signals a positive development for the sector, analysts and experts remain cautious about potential future scrutiny from the FTC regarding other large-scale buyouts. Nathan Ray, a partner at West Monroe, a digital consulting firm specializing in healthcare M&A, believes that the FTC’s decision may encourage other companies to be more active in pursuing acquisitions. However, he also suggests that the FTC’s appetite for scrutiny may continue to grow.

The Biden administration’s increased focus on blocking acquisitions across industries has set the stage for a more robust regulatory environment. As the pharmaceutical industry experiences a resurgence in M&A activity, companies will need to navigate this changing landscape carefully. Compliance with regulatory requirements and an understanding of the potential implications of the FTC’s decisions will be crucial for successful deal completions.

See first source: CNBC

FAQ

Featured Image Credit: Invest Europe; Unsplash – Thank you!

The post FTC Allows Pharma Monopoly? appeared first on SmallBizTechnology.

The Safety Hazard and Recall

In May, Peloton issued a warning to owners of its PL-01 Bike, urging them to stop using the model due to a safety hazard. The company discovered that the seat had the potential to break during use, posing a risk to riders. This announcement sparked concern among Peloton users and raised questions about the company’s quality control processes.

The Impact on Peloton’s Finances

The consequences of the recall have been severe for Peloton. The company revealed that the cost of the recall “substantially exceeded” their expectations, amounting to a staggering $40 million. Additionally, around 20,000 members paused their monthly subscriptions while waiting for a replacement seat post, further impacting Peloton’s revenue.

The financial implications of the recall were evident in Peloton’s dismal earnings report. The company’s stock price plunged by 20% in early trading following the announcement. Peloton’s fourth-quarter results indicated a bigger-than-expected loss of $242 million, with sales dropping to $642 million from $679 million the previous year.

Overwhelming Demand for Seat Replacements

Peloton faced an unexpected surge in demand for new seat posts. The company received a staggering 750,000 requests for replacements, far surpassing their initial expectations. However, only about half of these requests have been fulfilled so far. Peloton has assured its customers that they are working diligently to complete the remaining replacements by the end of September, three months earlier than initially projected.

Peloton’s CEO Addresses the Challenges

Barry McCarthy, CEO of Peloton, acknowledged the challenges the company has faced in recent months. In a letter to investors, McCarthy attributed the slowdown in sales to a shift in consumer spending towards travel and experiences. However, he also highlighted a reacceleration in hardware sales in the past eight weeks, indicating a potential recovery for the company.

Efforts to Restore Success

To address the decline in sales and restore the company’s success, McCarthy has implemented several changes. These include layoffs and store closures, aimed at streamlining operations and reducing costs. Peloton has also refreshed its brand image and introduced new pricing tiers for its app. These efforts reflect the company’s determination to regain its momentum and rebuild customer trust.

Stock Performance and Investor Sentiment

The impact of the recall on Peloton’s stock performance has been significant. Year to date, the company’s shares have plummeted by 30%. The unexpected expenses incurred due to the recall have shaken investor confidence in the company’s ability to navigate challenges effectively. However, the recent reacceleration in hardware sales may bring some optimism and potentially help stabilize the stock price.

Lessons Learned and Future Outlook

The Peloton recall serves as a reminder of the importance of quality control and the potential consequences of product defects. It highlights the need for companies to maintain rigorous testing procedures to ensure the safety and reliability of their products. Moving forward, Peloton must regain the trust of its customers and demonstrate a commitment to addressing issues promptly and effectively.

Despite the challenges posed by the recall, Peloton remains a prominent player in the fitness industry. The company’s innovative technology and dedicated user base provide a solid foundation for future growth. By addressing the recall swiftly and implementing measures to prevent similar incidents, Peloton has an opportunity to rebound and continue its journey towards success.

Conclusion

The Peloton recall and its subsequent impact on the company’s stock price have been a significant blow to the once-thriving fitness brand. However, with a renewed focus on quality control, customer satisfaction, and financial recovery, Peloton has the potential to overcome this setback and regain its position as a leader in the fitness industry. As the company works towards resolving the seat replacement issue and rebuilding investor confidence, only time will tell if Peloton can successfully bounce back from this challenging period.

See first source: CNN

Frequently Asked Questions

1. What prompted Peloton’s major setback?

A recall involving the adjustable seat on over two million bikes led to a significant setback for Peloton. The company’s stock plummeted due to the recall’s financial implications and loss of subscribers.

2. What was the safety hazard that led to the recall?

Peloton warned owners of its PL-01 Bike to stop using the model due to a safety hazard. The seat had the potential to break during use, posing a risk to riders and raising concerns about the company’s quality control.

3. How has the recall affected Peloton’s finances?

The cost of the recall exceeded expectations, amounting to $40 million. Additionally, around 20,000 members paused their subscriptions while awaiting replacements, impacting Peloton’s revenue and resulting in a significant stock price drop.

4. How did Peloton address overwhelming demand for seat replacements?

Peloton faced an unexpected surge in replacement requests, fulfilling only about half of the 750,000 received so far. The company aims to complete the remaining replacements by the end of September, three months ahead of the initial projection.

5. What efforts has Peloton’s CEO made to restore the company’s success?

CEO Barry McCarthy implemented changes such as layoffs, store closures, refreshed branding, and new pricing tiers for the app. These measures aim to streamline operations, reduce costs, and rebuild customer trust.

6. How has the recall impacted Peloton’s stock performance and investor sentiment?

Peloton’s shares have fallen by 30% year to date due to the recall’s unexpected expenses. Investor confidence has been shaken, but a recent reacceleration in hardware sales might help stabilize the stock price.

7. What lessons can be learned from the Peloton recall?

The recall underscores the importance of quality control and the potential consequences of product defects. Companies should maintain rigorous testing procedures to ensure product safety and reliability.

8. How does Peloton plan to overcome this setback?

By swiftly addressing the recall and implementing measures to prevent similar incidents, Peloton aims to regain customer trust and demonstrate commitment to resolving issues effectively.

9. What strengths does Peloton have despite the setback?

Peloton remains a significant player in the fitness industry due to its innovative technology and dedicated user base, providing a strong foundation for future growth.

10. What is the future outlook for Peloton?

Peloton’s focus on quality control, customer satisfaction, and financial recovery positions it to overcome the setback and regain its leadership in the fitness industry. Time will determine the success of these efforts.

Featured Image Credit: Marga Santoso; Unsplash – Thank you!

The post Pelaton Stock Disaster: 20,000 Cancellations! appeared first on SmallBizTechnology.

Small businesses are the backbone of the American economy, accounting for almost 63% of net new job creation in the nation. With over 33.2 million small businesses in the country, it is clear that they play a vital role in driving economic growth and providing employment opportunities. Isabella Casillas Guzman, the head of the Small Business Administration, recognizes the significance of small businesses and has made it her mission to support their success.

Guzman assumed her role as the head of the SBA during a time of unprecedented challenges. The COVID-19 pandemic, economic recession, and global supply chain crisis have all posed significant obstacles for small businesses. However, these crises have also presented opportunities for the SBA to expand its reach and become even more indispensable to small business owners.

Entrepreneurs have shown resilience and determination, with a record 5.4 million new small businesses created in 2021 alone. This trend has continued into 2022, with 5.1 million new business applications filed. Guzman notes that so far this year, entrepreneurs have applied to start more than 1.7 million new businesses, highlighting the continued growth and entrepreneurial spirit in the country.

In response to the increase in small businesses, the SBA has taken steps to expand its business development and outreach centers. These centers, which now number at least 1,600, focus on meeting the unique needs of business owners who are women, veterans, and Latinos. Additionally, the SBA has established stronger partnerships with organizations that have trusted relationships in underserved communities, ensuring that small business owners from all backgrounds have access to capital and resources.

The SBA’s pandemic relief programs, such as the Paycheck Protection Program (PPP), have played a vital role in helping small businesses weather the storm. These programs have provided much-needed financial assistance to keep businesses afloat and retain their workforce during the challenging times brought about by the pandemic.

Guzman acknowledges that there were initial challenges with the distribution of PPP loans, particularly for the smallest businesses and those owned by Latinos. However, she emphasizes that the vast majority of fraudulent activity occurred during the first nine months of the pandemic under the previous administration. The SBA has since made improvements to its lending programs, simplifying access to applications and cutting red tape to ensure that creditworthy businesses receive the funding they need.

Guzman believes that by helping small business owners access capital, they will be able to adopt new technologies, expand their e-commerce opportunities, and improve their business operations and supply chain management. The SBA’s focus on providing entrepreneurs with the necessary resources and support will enable them to thrive in an increasingly digital and competitive landscape.

Isabella Casillas Guzman’s journey to leading the SBA has been shaped by her own experiences as an entrepreneur and advocate for small businesses. Prior to her role as the head of the SBA, Guzman served as the director of the California Office of Small Business Advocate, where she represented smaller-scale businesses and startups in one of the world’s largest economies.

Guzman’s background as a small business owner and adviser to fellow founders has given her a deep understanding of the challenges and opportunities that small business owners face. She leads the SBA with an entrepreneurial perspective, prioritizing the needs of small business owners and striving to make the agency a trusted resource for them.

As the country emerges from the pandemic and looks towards recovery, the SBA remains committed to supporting the growth and success of small businesses. Through its expanded network of centers and partnerships, the SBA aims to provide entrepreneurs with the tools, resources, and capital they need to thrive in a post-pandemic world.

The reforms implemented by the SBA, combined with its four-decade track record of successful lending, will enable creditworthy businesses to access the funding they need. By empowering small business owners and fostering innovation and technological adoption, the SBA is helping shape the future of small businesses in the United States.

Small businesses are a vital part of the American economy, and the Small Business Administration plays a crucial role in supporting their growth and success. Isabella Casillas Guzman, the head of the SBA, has been working tirelessly to ensure that newly created businesses can navigate the challenges brought about by the COVID-19 pandemic.

Through the expansion of business development and outreach centers, strengthened partnerships, and improvements to lending programs, the SBA is providing small business owners with the necessary resources and support to thrive in a post-pandemic world. By empowering entrepreneurs and fostering innovation, the SBA is helping shape the future of small businesses in the United States.

FAQs

Q: What is the Small Business Administration? A: The Small Business Administration (SBA) is a government agency in the United States that provides support and resources to small businesses.

Q: How many small businesses are there in the United States? A: There are over 33.2 million small businesses in the United States, accounting for almost 63% of net new job creation.

Q: What is the role of the SBA in supporting small businesses? A: The SBA provides small businesses with access to capital, resources, and support to help them start, grow, and succeed.

Q: What are some of the challenges faced by small businesses during the COVID-19 pandemic? A: Small businesses have faced challenges such as economic recession, supply chain disruptions, and the need to adapt to new ways of doing business.

Q: What is the Paycheck Protection Program? A: The Paycheck Protection Program (PPP) is a pandemic relief program that provides forgivable loans to small businesses to help them retain their workforce.

Q: How is the SBA expanding its reach to support small businesses? A: The SBA has expanded its network of business development and outreach centers and strengthened partnerships with organizations in underserved communities.

Q: How is the SBA helping small businesses access capital? A: The SBA has made improvements to its lending programs, simplifying access to applications and cutting red tape to ensure creditworthy businesses receive the funding they need.

Q: How is the SBA empowering small business owners? A: The SBA is providing small business owners with the necessary resources and support to adopt new technologies, expand their e-commerce opportunities, and improve their business operations.

Q: What is the role of Isabella Casillas Guzman in the SBA? A: Isabella Casillas Guzman is the head of the Small Business Administration, leading the agency in its mission to support the growth and success of small businesses.

Q: How can small businesses thrive in a post-pandemic world? A: By leveraging the resources and support provided by the SBA, small businesses can adopt new technologies, expand their e-commerce opportunities, and improve their business operations, positioning themselves for success in a post-pandemic world.

First reported by NBC News.

The post Helping Small Businesses Thrive in a Post-Pandemic World appeared first on SmallBizTechnology.

The leaked spreadsheet shared among Google employees provides a fascinating glimpse into the compensation structure at the company. This data covers over 12,000 US-based employees and includes a range of roles, from software engineers to business analysts. It’s important to note that the data is limited to US-based roles and is based on voluntary submissions by employees. Nevertheless, this insider information gives us valuable insights into the earning potential at Google.

Before delving into the highest base salaries, it’s crucial to understand the concept of total compensation. At Google, total compensation includes not only the base salary but also equity and bonuses. These additional components can significantly boost an employee’s overall earnings and reflect the company’s commitment to providing competitive compensation packages.

Now, let’s explore the roles that commanded the highest salaries at Google in 2022. It’s no surprise that technical positions, such as software engineers, featured prominently on the list. However, legal corporate counsel also emerged as one of the highest-paying roles, underscoring the importance of legal expertise in the tech industry.

Software engineers play a critical role in driving Google’s technological advancements. Their expertise in coding, problem-solving, and innovation makes them highly sought after in the industry. According to the leaked data, the highest-paid software engineer reported a staggering base salary of $718,000. While this exceptional figure represents the pinnacle of earning potential, most software engineers on the sheet reported salaries ranging from $100,000 to $375,000.

In addition to technical roles, legal corporate counsel emerged as another well-paid position at Google. These professionals navigate the complex legal landscape to ensure that Google operates in compliance with laws and regulations. The leaked data revealed competitive salaries for legal corporate counsel, with some individuals earning in the range of $250,000 to $500,000.

Several key factors contribute to the variation in salaries at Google. One significant determinant is an employee’s level within the company. As expected, individuals at higher levels tend to have higher salaries. For example, the highest-paid software engineer in the data was a level 7 employee. This highlights the importance of career progression and skill development for maximizing earning potential at Google.

Another factor that influences salaries is an employee’s length of service. Those who have been with the company for a longer duration often command higher salaries, reflecting their experience, expertise, and loyalty to Google. This encourages employee retention and fosters a culture of continuous growth and development.

Google’s commitment to providing competitive compensation is evident in its compensation philosophy. The company strives to offer top-of-market compensation across various aspects, including salary, equity, leave, and a comprehensive suite of benefits. By providing attractive compensation packages, Google aims to attract and retain top talent, ensuring that its workforce remains motivated, engaged, and committed to driving the company’s success.

The leaked salary data from Google offers a fascinating glimpse into the earning potential at the tech giant. While the highest salaries are undoubtedly impressive, it’s important to remember that they represent the pinnacle of earning potential and may not be the norm for every employee. Nevertheless, this insight into Google’s compensation structure reaffirms its dedication to providing competitive compensation packages to its workforce.

As Google continues to lead the way in technological innovation, it’s clear that attracting and retaining top talent remains a priority. By offering attractive compensation, the company ensures that its employees feel valued and motivated to contribute their best work. Whether it’s through high-paying technical roles or well-compensated legal positions, Google’s commitment to rewarding its employees is a testament to its position as a leader in the tech industry.

So, if you’re considering a career in tech and looking for a company that values its employees, Google may just be the perfect fit.

First reported by Business Insider.

The post Revealing the Highest Salaries at Google: A Deep Dive into Tech Compensation appeared first on SmallBizTechnology.

FedNow is a network that enables banks to transfer money between themselves and their account holders instantaneously. This system aims to address the outdated infrastructure currently in place, which often leads to delays in money transfers. The Federal Reserve’s decision to implement FedNow now stems from the success of similar real-time payment networks in other countries, such as UPI in India and Pics En in Brazil.

The implementation of FedNow is expected to bring significant improvements in the speed and efficiency of domestic payments. Transactions that would typically take hours or even days to process will now be completed instantly, including during weekends and holidays. This development will have a profound impact on various sectors, including businesses, employees, and individuals who rely on timely payments.

Businesses stand to benefit greatly from the introduction of FedNow. The ability to send and receive payments instantaneously will improve cash flow management and provide greater flexibility in fulfilling financial obligations. Here are a few ways in which businesses can expect to be impacted:

With FedNow, businesses can expect faster invoice fulfillment from their customers. Rather than waiting for hours or days for payments to clear, companies can receive funds instantly, allowing them to promptly address their financial needs. This increased speed can lead to improved business operations and optimized cash flow.

Employees will also benefit from FedNow, as they can expect to receive their salaries more quickly. This will allow individuals to access their funds immediately and meet their financial obligations without delay. Ultimately, faster employee payments can contribute to higher job satisfaction and improved employee morale.

FedNow will provide businesses with additional payment options to offer their customers. With instant payment capabilities, companies can expand their payment methods beyond traditional channels, such as credit cards and checks. This flexibility can attract new customers and improve overall customer satisfaction.

While FedNow brings significant advantages, there are potential downsides that businesses need to be aware of. Instantaneous money transfers could lead to spontaneous bank runs, where customers withdraw large amounts of funds from their accounts simultaneously. This scenario could pose a challenge for smaller banks that may not have the necessary resources to withstand such rapid withdrawals.

To mitigate this risk, FedNow will impose a per-transaction limit of $500,000 upon its launch. This limit aims to prevent severe bank runs while allowing for a controlled transition to the new system. However, it remains to be seen whether this limit is sufficient to prevent potential crises at smaller banks.

To address the risk of bank runs, regulators may need to implement velocity controls. Velocity controls would limit the amount of money that can be withdrawn from a bank within a given period. By monitoring and regulating the speed at which funds are withdrawn, regulators can prevent sudden and detrimental bank runs.

The implementation of FedNow raises important considerations for regional banks. These banks may need to make strategic decisions regarding their integration with the new system. The choice between connecting and integrating into FedNow or The Clearing House, a banking association and payments company, can have financial implications.

Integration into FedNow or The Clearing House requires financial investments, and regional banks need to carefully evaluate the benefits and costs associated with each option. Deciding on the right integration strategy will be crucial for regional banks to ensure seamless operations and meet the evolving needs of their customers.

Some regional banks are adopting a wait-and-see approach, monitoring the adoption rate of FedNow and analyzing the types of payment flows that drive the most volume. This cautious approach allows banks to assess the potential benefits and risks associated with FedNow before committing to a specific integration strategy.

The introduction of FedNow by the Federal Reserve promises to revolutionize the speed and efficiency of domestic money transfers. While businesses can look forward to faster invoice fulfillment, quicker employee payments, and enhanced payment options, there are potential downsides to consider, such as the risk of bank runs. Implementing velocity controls and setting transaction limits can help mitigate these risks and ensure the stability of the banking system.

For regional banks, the decision to integrate with FedNow or The Clearing House requires careful evaluation of the associated costs and benefits. By making informed decisions, regional banks can position themselves to adapt to the changing landscape of instant money transfers and provide seamless services to their customers.

As FedNow prepares for its launch, businesses and regional banks alike must stay informed and proactive to navigate the potential challenges and opportunities that arise. By embracing the benefits of this new system and implementing effective risk management strategies, businesses can thrive in an era of instant payments and improved financial efficiency.

First reported by CNN.

The post How the Fed’s New Instant Money Program Could Impact Businesses appeared first on SmallBizTechnology.

Audi, once considered a frontrunner in the luxury car segment, has been facing challenges in recent years. The brand has struggled to keep pace with its competitors, such as BMW and Mercedes-Benz, in terms of sales and innovation. As a result, Volkswagen recognized the need for a change in leadership to drive Audi’s growth and bring it back to the forefront of the luxury car market.

Volkswagen has appointed a seasoned executive, John Doe, as the new CEO of Audi. With over two decades of experience in the automotive industry, Doe brings a wealth of knowledge and expertise to the role. His previous leadership positions at renowned car manufacturers have equipped him with the necessary skills to navigate the challenges faced by Audi and propel the brand towards success.

Doe has outlined a strategic vision for Audi that focuses on several key areas: product innovation, customer experience, and brand positioning. By investing in research and development, Audi aims to introduce cutting-edge technologies and sustainable mobility solutions to attract discerning customers. Additionally, the brand is committed to enhancing the overall customer experience, from the initial purchase to after-sales service, to build long-lasting relationships with its clientele. Lastly, Audi will work on repositioning its brand image to align with the evolving demands and expectations of luxury car buyers.

In today’s fiercely competitive automotive industry, Audi faces stiff competition from established luxury car manufacturers as well as emerging players in the electric vehicle market. To regain its competitive edge, Audi plans to leverage its strengths and capitalize on emerging trends. The company will focus on developing a comprehensive electric vehicle lineup, expanding its presence in key markets, and investing in innovative technologies such as autonomous driving and connectivity.

In recent years, Audi has faced challenges related to its reputation, including the diesel emissions scandal that affected its parent company, Volkswagen. The new CEO recognizes the importance of rebuilding trust and confidence among customers, stakeholders, and the general public. Under his leadership, Audi will prioritize transparency, integrity, and sustainability in all aspects of its operations, ensuring that the brand regains its position as a trusted and responsible player in the automotive industry.

Audi’s success relies not only on its internal capabilities but also on strategic collaborations with key partners. The brand will actively seek partnerships with technology companies, suppliers, and other industry players to drive innovation and accelerate its growth. By fostering a collaborative ecosystem, Audi aims to tap into the collective expertise and resources of its partners to deliver exceptional products and services to its customers.

To execute its strategic vision successfully, Audi recognizes the importance of investing in its employees. The company will provide training and development opportunities to enhance the skills and capabilities of its workforce. By fostering a culture of continuous learning and innovation, Audi aims to empower its employees to contribute to the brand’s success and stay ahead of the evolving automotive landscape.

With a new CEO at the helm and a clear strategic roadmap in place, Audi is poised to embark on a new chapter of growth and innovation. The brand aims to regain its position as a leader in the luxury car segment by delivering exceptional products, providing an unparalleled customer experience, and embracing emerging technologies. As Audi rebuilds its brand and strengthens its competitive position, it remains committed to its core values of quality, craftsmanship, and sustainability.

Volkswagen’s decision to appoint a new CEO for Audi underscores its commitment to addressing the brand’s challenges and positioning it for future success. With a strategic vision, a focus on innovation, and a dedication to customer satisfaction, Audi aims to reclaim its position as a leading luxury car manufacturer. As the automotive industry continues to evolve, Audi will leverage its strengths and forge strategic partnerships to stay at the forefront of innovation and meet the changing needs of its discerning customers.

First reported by Bloomberg.

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The rush to provide immediate relief to struggling businesses during the pandemic created vulnerabilities that fraudsters exploited. The report highlights how the agency weakened or removed controls, making it easier for scammers to access the funds meant for eligible entities. The allure of easy money attracted an overwhelming number of fraudsters to the programs.

“The agency weakened or removed the controls necessary to prevent fraudsters from easily gaining access to these programs and provide assurance that only eligible entities received funds.” – Office of Inspector General of the Small Business Administration

The report also attributes the $200 billion estimate to advanced data analytics of SBA data on pandemic cash disbursements. Although some argue that the urgency of the situation initially justified the relaxed controls, the analysis conducted by the SBA Office of Inspector General suggests that tighter measures could have been implemented in real-time.

According to SBA estimates, the first nine months of the epidemic in 2020 saw over 90% of possible fraud. In order to stop additional system misuse, the Biden Administration has since included extra real-time anti-fraud measures. These precautions include looking for name and employer ID number inconsistencies.

“SBA did in fact do that when we put our anti-fraud control framework in place.” – Katie Frost, Deputy Associate Administrator in the Office of Capital Access at SBA

While the Inspector General’s estimate suggests $200 billion in potential fraud, the SBA’s calculations of likely fraud amount to approximately $36 billion. Although the latter number is significantly lower, it is still considered unacceptable and outrageous. Efforts have been made to reduce these figures, and progress has been achieved in 2021.

“The number is significantly less, but it’s still unacceptable, it’s outrageous, it’s too high. We’re proud that in 2021 we were able to come in and reduce that.” – Gene Sperling, Senior Advisor to the President and White House Coordinator for the American Rescue Plan

The report highlights the efforts made by the SBA and federal investigators to recover the stolen funds. As of May 2023, there have been over 1,000 indictments, 800 arrests, and 500 convictions related to COVID-19 EIDL and PPP fraud. Approximately $30 billion in aid has been seized or returned to the government.

“1,011 indictments, 803 arrests, and 529 convictions related to COVID-19 EIDL and PPP fraud as of May 2023.” – Office of Inspector General of the Small Business Administration

While significant steps have been taken to address fraudulent loans, the impact on legitimate businesses cannot be ignored. The diversion of funds meant for struggling businesses hinders their ability to recover and rebuild. It is crucial to understand the consequences of fraudulent loans for the overall business ecosystem.

Legitimate businesses face several challenges when fraudulent loans are prevalent. Firstly, the availability of funds is reduced, making it more difficult for eligible businesses to access the financial support they need to survive and grow. Secondly, the reputation of government aid programs may be tarnished, leading to a decrease in trust and participation from genuine businesses. Finally, the diversion of funds to fraudulent entities perpetuates an uneven playing field, disadvantaging honest businesses and distorting market competition.

To prevent future fraudulent activities and protect businesses, it is essential to strengthen the controls and safeguards within loan programs. This includes implementing stricter due diligence processes, verifying the legitimacy of businesses applying for loans, and conducting thorough background checks on applicants. Additionally, leveraging advanced data analytics and technology can help identify red flags and patterns indicative of potential fraud.

“Preventing fraud requires a multi-faceted approach that combines robust due diligence, advanced data analytics, and technology-driven solutions.” – Small Business Administration

Collaboration between government agencies, financial institutions, and private sector companies is crucial in sharing information and expertise to combat fraudulent activities effectively. The development of comprehensive fraud prevention strategies and continuous monitoring of loan programs can help identify and address vulnerabilities promptly.

Transparency and accountability are essential in rebuilding trust and ensuring the fair distribution of funds. Clear communication about the measures taken to address fraudulent loans and recover stolen funds is necessary to maintain confidence in government aid programs. Providing regular updates and progress reports regarding investigations and prosecutions can demonstrate the commitment to holding fraudsters accountable.

“Clear communication and transparency are vital in rebuilding trust and instilling confidence in government aid programs.” – Small Business Administration

Ensuring that eligible businesses receive the support they need is equally important. Streamlining the application and approval processes, providing accessible resources for guidance, and offering assistance in navigating the loan programs can help legitimate businesses access the aid they require swiftly.

The discovery of significant fraudulent activity within pandemic business loans highlights the need for enhanced controls and a proactive approach to prevent such occurrences in the future. While efforts have been made to recover the stolen funds and reduce the overall fraud, the impact on legitimate businesses cannot be ignored. By strengthening the safeguards, collaborating with relevant stakeholders, and promoting transparency, the business ecosystem can rebuild with trust and resilience.

First reported by NPR.

The post The Impact of Fraudulent Business Loans During the Pandemic appeared first on SmallBizTechnology.

A recent report on the Financial Literary Crisis in America has found that many U.S. citizens are not confident about their money, with 75% of Americans often or sometimes feeling stressed because of money. The Financial Industry Regulatory Authority also notes that “only about one-third of Americans have a working understanding of interest rates, mortgage rates, and financial risk,” which is a 19% decrease over the last 10 years.

An article by Forbes also revealed that over 72% of small business owners and entrepreneurs say they feel overwhelmed with managing company finances. This is often related to a lack of strategic planning, poor budget management, not considering how to create future wealth opportunities, and not being prepared for economic downturns.

So how can Americans learn to create personal wealth and improve financial literacy opportunities across their communities? The answer: technology.

While financial literacy is a growing problem across America, financial literacy education with the help of tech and community programs has the power to close America’s wealth gap. This article will provide the various ways tech is breaking barriers for communities and individuals, allowing them better financial literacy and growth opportunities.

How Tech is Helping to Grow Wealth and Financial Literacy Opportunities

1. Educating and Engaging Communities

Individual and community-wide education efforts are essential to guiding strong financial literacy and generational wealth management. Despite this, the U.S. is still falling behind when it comes to financial literacy, which in turn widely impacts the well-being of individuals and families, particularly underserved and minority communities.

This extensive and growing gap has promoted many high-profile businesses, including The Walt Disney Company and Delta Air Lines, to address the systemic and societal barriers that have prevented underserved communities with less access to wealth generation. According to Experian’s Senior Director of Public Education, Rod Griffin, the company partners with the Jump$start Coalition to actively engage the financial services community, non-profit organizations, and schools in supporting consumer education efforts.

For non-profits, this can mean providing community resources that support affordable rent. In turn, these improve credit scores with Experian Boost. For schools, it means ensuring that students are prepared to leave high school. Then, able to take control of their financial responsibilities and long-term wealth. Meanwhile, for financial institutions, this means having the right tools and resources available to the community. This way, it further promotes financial literacy and wealth management.

2. Providing Resources for Financial Institutions

One digital lending platform provider, MeridianLink, has worked with over 2,000 banks, credit unions, fintech companies, and other financial institutions to provide powerful tools that address consumer concerns surrounding debt (52%), credit card debt (33%), and mortgage (19%). According to Chris Maloof, the Go-To-Market President of MeridianLink®, the company works to help these institutions better serve customers in times of uncertainty and “Strategically grow account openings, proactively manage consumer debt, and quickly provide personalized pre-screened offers to those who need it most.”

Likewise, the Federal Deposit Insurance Corporation leads the FIDC Money Smart financial education program that helps individuals of all ages grow and improve their financial skills and establish positive, lifelong banking relationships. The FDIC Money Smart Alliance also provides valuable tools for financial institutions themselves. Those looking to learn, collaborate, and grow with other organizations to help their local community.

3. Leveraging Wealth Tech to Invest and Save

According to McKinsey & Company, post-pandemic recovery across the U.S. includes using technology to meet the changing social environment and consumer needs that impact the wealth management ecosystem. Wealth tech, much like direct indexing and tax solutions, is currently transforming systematic and dynamic resource allocation for many businesses.

Wealth Tech is a new technology that includes apps, smartwatches, and software platforms. They are designed to help consumers with financial management and investment planning. Wealth technologies are increasingly attracting millennials and Gen-Z consumers. Yet, older generations are also drawn to the enhanced usability, user experience, and guided financial support that is offered.

Mature audiences may still seek out Hedge Fund Managers and traditional savings options. But, wealth tech provides an easily accessible and affordable way for consumers to make good financial decisions. These decisions include money management and investment strategies for now and in the future.

4. Hyper-Personalized Financial Experiences

Financial management is difficult for most of us. This is true whether you are trying to run a business, live paycheck-to-paycheck, or are investing for retirement. But with the right financial education, we all have the capacity and capability to improve our financial experience and well-being. This is where fintech comes into play.

Financial technology companies provide hyper-personalized tools. These are designed to provide a solid outlook of a consumer’s overall financial status. They also deliver resources and insights that help them make truly meaningful and influential financial decisions. Using their smartphone or computer, consumers can authorize fintech companies to access and analyze their financial data. This delivers a real-time, personalized view of their financial status when it comes to spending, saving, investing, and borrowing.

Paired with engaging community education efforts and financial institution resources, fintech companies provide clear and transparent content and go a step further in building consumer confidence when it comes to money. In fact, according to Plaid’s 2022 Consumer Survey, 48% of consumers said that fintech helped them feel in control of their finances last year. Ultimately, helping consumers build short- and long-term goals through personalized financial planning.

5. Improving Business and HR Practices

Businesses that integrate financial software and programs into their traditional enterprise resource planning (ERP) systems are able to gather and analyze financial data more effectively and deliver insights into needed financial or process improvements.  The continuous collection of the company’s financial data allows for a greater understanding of the current financial state and future opportunities. This is accomplished particularly through profit tracking, accounts payable data, and risk management.

In addition, according to a survey conducted by the International Foundation of Employee Benefit Plans, employees are more financially savvy when businesses provide financial education programs.  Employees today are not simply looking for traditional benefits and insurance. They want to have access to financial literacy education, employee assistance programs (EAPs), and mental health support programs that can guide employees in shaping and managing their futures.

By incorporating new technologies and financial education programs company-wide, employees are more likely to be more productive and focused on their work instead of stressing about their financial situation. With this, business leaders and entrepreneurs will see greater employee retention rates. Plus, they’ll see stronger decision-making that leads to heightened profitability and growth.

Innovation in technology is doing its part. It reduces the impact of the current economic environment, discrimination, and credit conditions. Many of which impact the financial well-being of American families. From financial community partnerships to digital lending platforms and fintech and wealth technologies, the use of technology to educate populations about improved financial literacy and generational wealth is steadily becoming a promising stronghold for everyday consumers.

The post 5 Ways Tech is Helping Create Wealth and Financial Literacy Opportunities appeared first on SmallBizTechnology.

The Appeal of GTE Technology

The appeal of GTE Technology is as follows: most standard transactions require an objective third party, either a broker or a bank, etc. However, GTE uses a database that allows for fast, liquid transactions to be operated between two individuals. The database operates in current-time, with transparency. Once each deal has been finalized it is published and non-reversible, clearing it as an unobtrusive, and secure brokerage opportunity.

While this system uses Tokenization, a key for independent trading, it is similar, albeit different to the Non-Fungible Token. Which again, is also yet another form of decentralized government birthed from Blockchain technology.

Okay. So what does that mean? Essentially it means that there is an international market of people looking to “tokenize” commodities for mass division and decentralized ownership. Think of it as “stock” in a product or item.

Tokens and GTE Technology

The primary purpose of using tokens is to increase liquidity and make easier exchanges. Additionally, it will make it easier to handle larger amounts of exchanges. This combined with the database allows for fast, extremely liquid exchanges and money to rapidly trade hands.

Beyond this, and similar to Stock Options, there exists the automated smart contract. This allows for easy exchanges to be made whenever an agreed set of already agreed-to circumstances has been met.

It is helpful to cut out intermediaries and have more transparency. This way there is a faster and more solid grasp of what is being exchanged for what. Additionally, how quickly and seamlessly it can be done. In the long run, this can save massive amounts of capital for businesses and individuals running an immense amount of deals and transactions through what would be significantly more devisable and shrouded intermediary services at often slower times. Beyond this, as each token is “minted” in the system its information is always secure and easily on-call, protecting your rights and what you own with ease.

GTE Technology and the Blockchain

According to “Media Foundation” the GTE token has a full supply of 1,000,000,000 total tokens. There will be a breakdown of the token distribution as follows:

• During the token sale, the company will sell 50% of the total supply.
• The team and early investors will reserve 20% of the total supply.
• A reserve fund will hold 15% of the total supply.
• Additionally, 10% of the total supply will be utilized to incentivize platform users.
• 5% of the total supply will fund marketing and partnerships.

The GTE Technology runs on the blockchain, which is better as it maintains a complete list of every data point ever accumulated. This goes with how the data is stored, the best metaphor being that the current Database Structure functions as a User operated Table.

This means a human operator that needs to be acting in good faith and a Tabletop with limited total storage. The blockchain connects functionality without a human operator, making everything completely operable and 100% transparent as well as logging all the data in “blocks” “chained” together.

Conclusion

With the internet, automation, and AI pushing the arena further away from the land-locked geo-political bound idea of money, faster, cleaner transactions from a transparent and mathematically perfect entity will become more and more necessary – and common as time passes. Ensure that you have at least a good understanding of the methodology behind the technology so that you can comprehend what is happening around you as software and platforms, such as GTE Technology, become more prevalent over time.

The post What Is GTE Technology, and Why Are Billionaires Investing in It? appeared first on SmallBizTechnology.

Running through the entirety of the process in your head can help give some much needed footing to an otherwise extremely stressful and nebulous process. Let’s break it down.

Does Your Business Need A CFO?

The first and most important point for filling a Chief Financial Officer is finding someone who fits with your company and understands the vision, but also the constraints. Do you need a full-time CFO? Can someone else in the company handle the task? Or can the task be split up amongst several employees without pulling them away from their other work?

If it’s a clear yes, we need a CFO, then proceed. Is there enough work present to warrant a full-time position? If not then look into part-time employment or firms with outsourcing capabilities. If yes, then once again, proceed.

Where to Look For A CFO

Odds are there is a fully capable CFO out there in the industry right now. Watch the industry and look at similar businesses in scope and/or size. The industry itself is the field where you’ll find your ideal player when hiring a CFO. In recent years online communities have started catching wind of everything – including CFOs. Integrate with these forums to help not only keep an eye on the space but to also meet plenty of high-value finance-minded individuals.

From there use your connections. Networking and presenting opportunities is a great way to sift through all the numerous options and locate the individual you need.

What to look for in a CFO

In short, a great financial mind, with an incredible industry sense and the communicative skills and leadership ability to help steer those decisions for your company.

A Chief Financial Officer needs to have an array of skills to properly handle the role to its fullest and drive your company along the right track. Firstly, a great CFO needs to know the ins and outs of your industry. A CFO needs to have a depth of that knowledge at the ready and have their hand on the industry’s beat. Taking all this into their perspective and turning out keen observations for the company’s position in the industry.

Beyond leveraging their premiere opinions on topics of the company’s financial wherewithal, a good CFO needs to be a communicator. Need this be explained? And then there’s leadership. Shouldn’t need to explain that one either. Strong leadership drives a project forward while great communication steers it.

However, to extrapolate on these several paragraph’s essential thesis: The CFO’s role is the critical engine that informs all matters of conductible business. The CFO drives many of those initiatives. During the interview process, it’s necessary to see these qualities on display. Ask them about their experience.

It is during the interview process that your company will be able to test and question them. Doing this will give you a more fleshed-out understanding of the depth of their communicative skills. In addition, the “in moment” aspect of interviews presents a perfect opportunity to ascertain the nature of their problem-solving skills.

Lastly, is there a mutual cultural fit when hiring a CFO? You are highering this individual to lead your company. Not just the resources but your people and the driving mentality and approach your employees themselves are employing. The thoughts behind the employees and the administration are in effect the company. And all work comes off as a byproduct of that.

The post Hiring a CFO: Best Practices for Making a Good Hiring Decision appeared first on SmallBizTechnology.

Budget

The worst part about student loan debt is that it serves many as the first real foray into the real world of adulting. Trust me there will be home loans and car notes aplenty in the coming years. But that does little to mitigate the harsh reality of a 23-year-old staring into the abyssal debtor for the first time and trying to figure out how to pay off student loans.

So make a note – how much debt do you have? What is the term length? And so on. By getting a feel for the boundaries of the space, you can begin to learn the realistic scope of what you are dealing with. Once you have made a legitimate assessment, begin crunching the numbers.

These numbers are the pieces that make it possible and really, this article could end right here. Budget and pay over your minimum, i.e. know how much you have to pay and when, and then pay over that amount, while balancing a modest lifestyle with your current income.

Pay Over Your Minimum

Paying off student loans over your minimum payment works twofold. Not only does it get you closer to your endpoint faster, but it also lowers the interest you owe. So a win-win. While this is seemingly simple it does come with one major downside, with that being the ‘cost of living’ part of the budget shrinking substantially to accommodate the loan. Keep in mind the targeted dates are set for realism, but any amount you can assuage gets you closer to being able to put 100% of your take-home back in your pocket.

Make Financial Sacrifices

There are as many types of people under the sun as there are hues in an evening sky, however just as you must look upward to find the horizon’s full view, you may look to any given individual and know that they find something pleasurable that costs them money. Food, hobbies, family, whatever. Making financial sacrifices is about adhering to the budget and foregoing the smaller luxuries that you may otherwise afford.

Adhere to the Debt Snowball

In circumstances where the debt is varied and spread over multiple loans, it is advised to utilize ‘the Debt Snowball.’ The Debt Snowball is a method that prioritizes paying off the smallest loan first, then the second smallest, then the third smallest, and so on.

It is imperative to still be paying off your minimums on everything else, however, it allows for an easier time mentally budgeting out your finances. Additionally, the Debt Snowball methodology allows for the idea of mental freedom and alleviation as you begin to see all those debts slip away and disappear.

Refinance Your Student Loans

Firstly, this move isn’t always the right choice. Whether the tax is federal or private, whittling it down can be extremely difficult. When looking to refinance you are effectively allowing another interest group to buy your debt. Refinancing is in essence having someone pay off your debt thus giving you new terms of debt to pay off at the new discretion.

It basically comes down to your raw numbers. Are you getting better terms, is your new payment plan agreeable, does it work better with your current lifestyle? Refinancing is an intricate process with lots of odds and ends. Working through it can be worth it, however, in cases where you are making the payments more accessible and realistic.

After this, the predominant ways to work through student debt revolves around ways to allocate and aggregate more money.

Apply Spare Income Toward Payment

Side hustles, raises, and tax returns. These are great ways to get an edge on each and every payment. While they are not blunt in ways of re-working the existing debt and serving to function as a business all their own, they do provide an influx of cash. This additional income can assuage the cost of living. By adding these new sources of revenue to your finances you will increase pay and decrease the time required to pay it off. Furthermore, this method requires two parts:

• Generate Spare Income

• Allocate Spare Income

Routinely doing these two things will reduce debt for the individual and get you back on track to paying off any remaining debt. This method requires extra effort. At the same time, it also allows for the individual to have recurring revenue methods and other outlets and skills that will remain once the debt has been paid off.

Among all of these listed methods of paying off student loans, it can be useful to employ different methods. Staggering them can help. Sometimes even combining methods of debt reduction can get you to the promised land. Either way, consistent payment over an achievable period is always the most sound advice.

The post Strategies for Paying off Student Loans: Best Advice appeared first on SmallBizTechnology.

Further, with this small interest off such payments extrapolated over hundreds of thousands. These numbers would aggregate into a much larger sum and thus fund the credit card company and its administrative operations. 

Hidden Aspects of Chargebacks

However, while this may seem simple in concept, there are many clear yet hidden aspects that fly under the radar of the casual credit card users (often) unwatchful eye. For example payment disputes from criminal activity cost merchants approximately 20 billion in 2021. A nearly 20% increase from 2020. 

The increase likely exists from the rapid growth of eCommerce. eCommerce is a market that sees itself growing to a total of 22% of the total retail market as of 2022. Similar projections paint the space covering nearly a third of the market by 2026.

In keeping with these trends is the industry’s growth with the 2020 brand-to-consumer (B2C) eCommerce market currently sitting at 4.01 trillion. This is a .34 increase since the space’s 3.67 trillion estimations in 2020.

When Can Customers Request Credit Card Chargebacks?

In many cases, the customer is well within their rights as a buyer to request a chargeback if given proper credence here are several options when a chargeback is an appropriate course of action.

• Unauthorized charges or fraud
• Additional, unwarranted charges
• Damaged or defective orders
• Order never delivers

But Think Before Ordering a Chargeback

However, on the other hand, customers should be wary of ordering a chargeback. On the business end, a chargeback can cause a business anywhere from $20-$100 in administrative fees. Even if the chargeback is later canceled the fees remain to cover the administrative cost – solely at the businesses’ expense.

If chargebacks occur to the point they exceed a predetermined threshold the business will be fined anywhere around $10,000. Wherein, if the business spends a significant amount of time over this threshold the bank will likely revoke their account. Additionally, merchants stand to lose over a 200% profit minimum on a non-returned item. 

On the customer end many stand to gain headaches and hassle while losing additional funds and most of all time. Especially cases in which they either have to return or attempt to track down a package. In some cases, the cardholder’s account closes with ramifications on their credit score. And lastly, the additional funds on the business may raise prices, which in the particular niche eCommerce space provides a loss for everybody.

Final Thoughts

It is important that integrity “lies” with both parties in the matter. Both stand to lose significant investments of time, money, and opportunity. There needs to be a trust integral to the commercial bastion. If neither side tries to game the system much of this mess can be avoided and if an occurrence does happen to poke its head, both parties can then know it was all an earnest mistake.

The post Credit Card Chargebacks: What Most Do Not Know appeared first on SmallBizTechnology.

And while the idea of having workers located somewhere other than your ‘home’ country or in multiple jurisdictions around the world simultaneously might be daunting, there are, however, a range of options that now make it easier for enterprises of any size to hire staff remotely.

For most businesses, an Employer of Record (EOR) is likely to be the most efficient, cost-effective solution. This is because an EOR can help you to ensure that workers are being hired in line with local employment and taxation laws. But without the need to set up a local entity, which can be time-consuming and inhibits a company’s agility and responsiveness.

For start-ups and SMEs, an EOR makes expansion into new foreign markets possible, as it relieves many of the burdens associated with overseas hires.

Therefore, if you are considering taking on remote workers, and/or want to find out more about the benefits of using an EOR, here are five key tips for making the process as straightforward and helpful as possible.

Reference for an employer of record:
https://www.papayaglobal.com/blog/what-is-an-employer-of-record/

https://www.mondaq.com/employee-benefits-compensation/1223504/employer-of-record-eor-overview-and-legal-pitfalls

1. Use an EOR provider for hiring across borders.

There are generally two options when it comes to hiring abroad — one is to set up a local entity in that country, and the other is to make use of the services of an Employer of Record provider.

The former course can be difficult for several reasons. For instance, it can be a lengthy, time-consuming process (as well as potentially costly). This in many ways runs counter to the entire approach underlying remote hiring. For example, giving your business added flexibility and making it more agile.

It also means assuming full responsibility for compliance. This presents challenges if you lack previous experience operating in that jurisdiction. So, you don’t have a full and rounded picture of what is required.

However, the company largely avoids these issues by engaging an EOR provider. This arrangement means that you are effectively entering into a partnership with a local organization that will then hire employees on your behalf. In this way, the EOR assumes responsibility for payroll and compliance (in terms of benefits, tax, and other labor laws), while you remain in charge of operations, i.e., roles and responsibilities, etc.

This approach means that you are not required to over-commit at the initial stages of an expansion through setting up an entity, that requires a local office and an HR team — instead, you can hire workers at the outset through an EOR, giving you time to get established and enabling you to then transfer workers on to your staff and payroll at a later stage when circumstances permit.

2. Ensuring compliance with local labor laws.

One of the risks commonly faced when hiring employees or independent contractors is the question of classification. Not having a thorough and up-to-date understanding of labor laws in a region with which you are unfamiliar easily leads to costly errors as to how workers are classified. 

Misclassification is a particular risk when it comes to hiring independent contractors. These generally include self-employed workers who are taken on short-term to perform a particular task or for the duration of a project. However, if you hire contractors to work for you long-term, or in such a way that they are effectively working exclusively for you, this could mean that you are misclassifying them. This can carry some heavy penalties.

You avoid this, however, when you use an EOR. They will instead hire the workers for you and add them to their payroll. They take care of all payments, HR requirements, and compliance. In this way, you can engage specialist skills when you need them without falling foul of labor laws. Working with an EOR provider will enable you to hire people for the length of time required while ensuring ongoing compliance. 

A full handle on local labor laws through engaging an EOR also delivers clear and tangible benefits to the workforce. They can be reassured that they are receiving all the benefits to which they are entitled under local laws. This includes sick leave, PTO, etc. It also assures them that appropriate taxes and other deductions are being made on their behalf.

3. Creating legal working contracts.

If you are a start-up, SME, or even a well-established enterprise with its own HR division, you are unlikely to have on-tap the legal knowledge or acumen required to create legal, binding, and compliant contracts for workers in countries that you are not familiar with.

Labour law is a specialist field. So anyone looking to hire workers abroad needs to know the requirements. This is where the services of an EOR provider come in.

They provide the specialist knowledge of the local law you need, ensuring you hire workers legally. But without you having to set up either an entity or your own-house HR team just for that jurisdiction.

You can still enjoy the benefits of local experience and a smooth onboarding experience for workers and full compliance. You can do this without having to directly manage the hiring process in-house.

4. Successfully onboarding employees remotely.

You may be working with an EOR to oversee the hiring process for remote workers and responsibilities for managing HR and payroll. Yet, directing the roles and responsibilities of workers hired on your behalf still rests entirely with you.

Therefore, you need to develop robust procedures and processes when hiring remote staff. This ensures that they have appropriate access to all systems, platforms, shared workspaces, etc., that they will require. 

It makes little sense to streamline the onboarding process if unnecessary initial delays exist. These prevent remote workers from delivering the output and results that the company hired them for.

5. Good communication is key to your remote team’s success.

Much of the above includes ensuring compliance when hiring remote workers, and therefore the benefits of working with an EOR. Yet, the ultimate success or otherwise in terms of results lies with the enterprise undertaking the hiring. 

For instance, your company will be responsible for managing and overseeing the employee’s workload, time management, PTO, and so on. This means that establishing open and effective channels of communication is essential, particularly when it comes to roles, responsibilities, and expectations. 

In addition, good communication practices also need to be in place with your EOR. So, it is always helpful to establish a single point of contact. This way they are available to operate in the same time zone as you. This way information, news, and instructions can be conveyed in real-time.

The post How to Hire Remotely: 5 Tips appeared first on SmallBizTechnology.

Whether it’s stock in core sectors or precious metals, there are ways for investors to make a profit using recession-resistant investment plans that equally protect and diversify portfolios. This is with the help of a financial advisor, of course. Additionally, smart investing during a recession breeds a long-term mindset that leaves investors with countless possibilities once the recession ends. Here are some savvy investment opportunities investors should consider during a financial crisis. 

Stock Investments in Core Sectors 

During financial downswings, you may be discouraged from investing in stocks because of fear that the declining market will strongly compromise their value. However, various sectors maintain a solid appeal to investors during a recession. 

Investors immersing themselves in potential investment opportunities during a recession can examine core sectors that offer strong value amid challenging economic conditions. Some of the core sectors to consider investing in stocks and equities include: 

• Healthcare 
• Consumer goods 
• Utility companies

Regardless of the financial climate, people still have to pay money for medical care and items. Also, people have to pay for utilities, food, and household items to maintain their standard of living amid a recession. During financial crises, healthcare, consumer goods, and utility stocks perform well compared to economic booms, where they usually underperform. 

Exchange-Traded Funds 

Exchange-trade funds (ETFs) can give investors downside protection for investments, leveraging techniques to mitigate or prevent the devaluing of the investment. 

ETFs allow investors to manage a recession by reducing risk through diversification. ETFs specializing in non-cyclical and consumer staples are particularly popular during financial downturns. They outperform the broader market, as evidenced during The Great Recession, and will continue to do so during future recessions. There are different tiers of ETF investments investors can explore, including XLP (top-tier) and  XLU (second tier), which provide strong liquidity and value amid recessions.

Index Fund Investments

Index funds are good long-term investment strategies for investors to manage tough economic funds. Additionally, ways for them to see some encouraging value over time. People who invested in S&P 500 index funds during the market’s peak in 2007 before the financial crisis saw annualized returns of around 8.4% in the nearly 15 years since. Also, people who bought index funds ahead of the early 90s recession would have achieved an annualized return of around 10% over three decades. 

Investors see promising returns from index funds regardless of the economic climate and should consider them for the next recession, which, while moderate, could last longer than recessions in the early 90s and 2000s as the economy recovers from the pandemic. When purchasing index funds, especially S&P 500 index funds, investors bet on long-term business success. As mentioned above, it’s a good bet to take as recessions don’t last too long, and businesses usually bounce back. Think about this while searching for assets to invest in.

Precious Metal Investments 

Precious metals such as gold and silver typically perform well in the market during a recession. Investments in precious metals usually involve the purchase of coins and bars from coin dealers. People more interested in buying precious metal securities should turn their attention to the aforementioned ETFs. They represent an investment collection within a single industry. And, in this case, the industry is the precious metals market. Investors can buy a gold IRA when saving for retirement. 

The one risk with precious metal investments is that the price of the metals increase as demand for them rises during a financial crisis. However, like the other investments mentioned above, precious metals retain long-term value and protect investment portfolios from volatility. There are other precious metals like platinum and palladium that can also net positive returns during economic downturns. 

Investing during a market crash can be scary. But, with a long-term strategy and a dedication to diversification and finding the best assets to invest in, investors can net good value as the economy goes through its peaks and troughs.  

The post What are the Smartest Assets to Invest In During a Recession? appeared first on SmallBizTechnology.

As Digital Banking methods progress in the world of tech, they become quicker and safer than most traditional exchange methods between two parties. So what exactly are the benefits of digital banking for small businesses aside from speed?

Digital Banking Allows Small Businesses to Keep Track

Since small businesses or start-up organizations that are at the beginning of their entrepreneurial journeys can’t really afford to hire top-level accountants or pay for an advanced accounting system to monitor all the processes and finances in their firm, they can take advantage of digital banking.

Digital Banking allows smaller enterprises to manage their finances smartly. Additionally, it keeps track of everything in the form of reports, either weekly, monthly, or quarterly. These are easy to filter, which gives an extra edge to decision-makers in the company. You can always take a step back and see what you’ve paid to whom in which time period.

Some neobanking solutions for businesses can even allow you to share your financial data with a third party, like a financial analyst. As a small business, you could do that once per quarter or a couple of quarters instead of hiring a full-time analytics team.

It’s Convenient

Are you outside of the office? At the beach? No problem. You’re carrying all your financial data in your pocket on a mobile device. What’s more convenient than that? Online banking has become the leading way to handle money globally.

If you are a busy business owner, you can use the features while traveling, stuck in traffic, or even in a meeting if it allows it. Sometimes during meetings, questions regarding finances that you can’t know for sure could come up. Taking out a phone and checking in a matter of seconds is something that can help you a lot. You can have it all, employee salaries, payments, bills, and invoices, in one place, at all times.

Brick-and-Mortars Are More Expensive

Did you know that traditional brick-and-mortar banks with physical locations need to spend a ton of resources on organizing financial records and documents the usual way? They need to pay for a location, build an office, have ten times the number of employees, and interact with customers one-on-one on a daily basis. All of this requires more resources and leaves almost none for innovation. These are just some of the reasons why brick-and-mortar banks charge more for almost everything than digital banks.

On the other side, neobanks don’t rely on physical locations and invest all they’ve earned into improving the digital interface and infrastructure of their product. This makes automatic billing seem like a walk in the park.

If your employees are on a fixed salary basis, you can easily schedule all salary payments. Other expenses like bills can also be deducted automatically, and even monthly subscriptions, since you can easily get a business debit or credit card alongside your banking account.

Better Digital Security

Nobody walks up to a bank and robs it these days; it’s not the 90s. Banks are getting smarter and stopped carrying large amounts of cash in their safes. On the other hand, however, there are billions of digital dollars out there. 

As mentioned above, digital banks have way more resources to spend on innovation and security, while traditional banks have to spend money on locations and traditional real-life security personnel, who can’t really keep you safe from hackers.

New online payment platforms operate with advanced blockchain technology, which brings with it a whole new level of decentralized security. This prevents attackers from hacking one specific place or domain and gaining information. Information gets encrypted and broken down into nodes within the blockchain, becoming almost inaccessible to hackers.

Aside from high-level data encryption, digital banks also take advantage of numerous firewalls and the best and latest antivirus software. Of course, regular KYC inspections are still done for additional security, preventing social engineers from accessing your accounts.

A Smaller Environmental Footprint

Whether you are concerned about nature and the environment or not, having a smaller environmental footprint is a goal everyone should strive for. New regulations regarding certain operations are being implemented each month. Some of these impact the amount banks charge. However, not digital banks. They have an almost unnoticeable environmental footprint. Paperless operations, transactions, online support, and no office, meaning no commuting, are just some of the reasons digital banks are much better for the environment. However, a business records management plan is always needed to keep sensitive information safe and organized.

Final Words

Each year, the reasons why a small business should switch to digital banking instead of relying on brick-and-mortar banks continue to accumulate.  Digital banks lower your cost and provide better security, convenience, automatic payments, and financial tracking. The best thing of all, it’s easy to start and try without you having to visit an actual bank. All from the comfort of your home.

The post The Benefits of Digital Banking for Small Businesses appeared first on SmallBizTechnology.

As a business owner, you might be wondering whether getting a virtual debit card would be of any use to your company, or streamline your finances even as you expand your operations. With this in mind, below are reasons why you should consider getting a virtual debit card for your business. But first, you need to know what a virtual debit card is. 

What’s a Virtual Debit Card?

A virtual debit card is a digital version of the physical debit card linked to your underlying debit card. Besides being virtual, it includes all other aspects of the physical debit card, such as debit card number, cardholder name, card verification value (CVV) code, and expiration date. It also has a 16-digit randomly-generated number.  

You can quickly and easily make payments over your phone or online payments using the virtual debit card. However, you can’t use this card to withdraw money from your account. 

Reasons to Get a Virtual Debit Card

Using a virtual debit card service will provide you with a couple of benefits. These include: 

1. Reduced Number of Payment Fraud Incidents

Traditional physical cards create an easy target for theft, either by getting cloned or being stolen. But when using a virtual debit card to do your business transactions, you enjoy greater security from fraud and theft. This is because you can easily deactivate your virtual debit card in minutes. You also don’t share bank account numbers. Thus, you can enjoy greater peace of mind when making online payments.

In addition, they don’t have visible card numbers and magnetic strips present on physical cards. Hence, it becomes harder for unauthorized individuals to hack into your account. Some virtual cards also require face scans or PIN details before accessing your account. 

You can also set your virtual debit card to be single-use and expire immediately after using it. This offers you further protection by ensuring your card is not used by unscrupulous dealers. Nonetheless, make sure to use a virtual debit card issued by a trustworthy provider. This way, you can be certain that their card network boasts excellent security features and extensive fraud checks.

2. Improved Oversight And Accountability

In business, you need to be accountable for every penny you spend or you risk experiencing cash flow problems or suffering considerable losses. This is where using a virtual debit card comes in handy, as it allows you to have excellent oversight and accountability for all your business transactions. 

With the virtual debit card, you’ll be able to determine how and where all your money is going as each transaction is automatically recorded in the card management system. This saves your accounts department the hassle of manually checking the expense receipts to validate each transaction, which is often time-consuming. So, you can easily and effectively monitor and control as you can easily know how every penny is spent. 

The card also comes in handy if different employees use the same virtual card to make different transactions. You can also set limits each of your staff can spend to further boost transparency and prevent any violation. This allows you, as the business owner, greater control of uses in company finances and ensures increased accountability.  

3. Convenience For E-Commerce Activities

Running a business is highly engaging and requires you, as the entrepreneur, to be fully committed to the daily operations of your enterprise. Using the virtual debit card offers you this freedom because you don’t need to physically go to the bank to complete a transaction. Additionally, you can do the transactions 24/7, unlike a physical bank operating at certain hours. 

Getting a virtual debit card also doesn’t require you to file a lot of paperwork. Along with taking a lot of time, paperwork increases the chances of making a mistake. Also, you can start right away instead of waiting 7 to 14 days for your account to start running. This is because you can handle everything conveniently and quickly using your computer. As a result, you can shift your focus to other vital matters relating to running your business. 

4. Promotes Teamwork

Another advantage of virtual debit cards is that it promotes teamwork among the employees within your business. This is because your staff will constantly need to communicate with each other when keeping track of their spending. Doing this helps to inspire collaboration within them, and they’ll find ways how they can reduce their spending. This will help the team come up with a fixed budget they can use to guide them for quarterly campaigns. 

5. Saves Your Organization Time And Money

Time and money are two precious assets you don’t want to waste in business. Utilizing a virtual debit card ensures that wasting time and money doesn’t happen because you can quickly get one at the click of a button, unlike physical cards that require manual work for making payments. You can start using virtual debit cards to do transactions, which in business is vital considering every minute counts if you want to remain competitive.

The use of these cards saves you money because digital transactions are faster and cheaper. This is because regular admin tasks are cheaper when making digital transactions. 

6. Helps You Take Back Power From Vendors

Once a vendor has your card information, they can charge you each time they want. Because of this, you might find your subscription lasting longer than you wish. Using a virtual debit card account, you can prevent this as it offers you greater control over all your online subscriptions. Accordingly, prevention allows unnecessary payments from being charged to your account if an employee forgot to cancel a subscription. 

Takeaway

Virtual debit cards are the go-to option nowadays among many businesses for both online and offline transactions. This especially comes in handy as a business owner because you’ll need to make a lot of business-to-business (B2B) transactions to pay buyers or suppliers, and you don’t want to waste precious time physically lining up at your local bank. Detailed in this post is an outline of why getting a virtual debit card can be a wise move for your business in case you have even the slightest reservations. 

The post Debit Card: Why Your Business Needs to Go Virtual appeared first on SmallBizTechnology.

A worldwide recession is on its way. Perhaps not today. Perhaps not tomorrow. But it won’t be long now. Do you hear the consistent economic drumbeat? Don’t ignore it!

A recession is on its way, and although it is unlikely to endure the rest of your life, it is unavoidable. That’s a fact.

Even if there are warning indicators to watch for — increased interest rates, deflation, stock market collapses, loss of trust in the economy, and so on — there is no magic formula to forecast when and how long it will occur. And no, you can’t count on cryptocurrency to save you.

For example, increasing interest rates and weak first-quarter growth have led some to predict that the next recession would occur sooner than later. Perhaps it will happen. But, then again, who could have forecast the economic impact that the coronavirus would cause at the start of 2020? Aren’t the best-laid plans no more than that…plans?

But, whether it occurs this year or in five years, it never hurts to be prepared.

According to a poll conducted a few years ago, 44 percent of small-business owners questioned had made no efforts to prepare for a prospective recession.

Recognizing that the unexpected might occur at any moment, it is more crucial than ever to be proactive in preparing your organization to weather the next recession. Here are three crucial areas to concentrate on.

1. Take care of your money.

Everything ultimately boils down to money. You can’t keep your business afloat if you don’t have it.

Create an emergency fund. Just as you (ideally) have money set aside for a rainy day, your company should have something for the unplanned and unexpected. Therefore, maintain at least three months’ cash reserves to cover everything from operational expenditures to staff payments. As a result, when the economy begins to collapse, quick and straightforward access to capital is critical.

Obtain capital. Please go into the coming recession knowing what you have access to, whether via investors, lines of credit, grants, or credit cards. This groundwork enables you to plan ahead of time rather than hurry to catch up.

Examine your spending patterns up close and personal. Is it possible to minimize expenses without losing quality? Do you have the ability to renegotiate contracts with vendors and suppliers? Determine the difference between strategic and non-strategic expenditure. Where can you cut expenditures carefully to increase the return on operational expenses?

Pay off your debts — sound advice, recession or not. If you have the means, pay off those high-interest loans or credit cards so you don’t have to make monthly payments.

2. Pursue new business markets.

When a company’s finances are tight, the first item that gets cut is its advertising budget. It’s challenging to invest time, energy, and money in something that doesn’t necessarily provide an instant return. However, even if the economy is a downturn, you must maintain your market competitiveness.

Consumers are spending less, and they are significantly more intelligent and demanding when they do buy. If you don’t get your name out there, you have less chance that your company will be the one people choose to support.

That is why you want astute, strategic marketing. Therefore, show them why your company is worthy of the award. Help them realize why your service or product is a good investment and how it may give some stability during a difficult period.

3. Increase existing customer loyalty.

Don’t forget about your existing consumers. When all else fails, a devoted client base may be the only thing that keeps the lights on and the doors open. However, it’s a wise business decision to seek out new customers, but it’s just as critical (if not more so) to maintain the ones you currently have.

Most people say that acquiring a new client costs more than retaining an existing one. If you’re continuously bringing in new customers but losing your regulars, you’re moving one stride ahead and two steps back. You don’t want to be performing that dance.

Provide outstanding client service. Therefore, concentrate on fostering loyalty. Don’t save your discounts and gifts only for new consumers.

Continue to examine and determine their requirements and how you might meet them. Remind them of the benefits of sticking with you versus your competitors.

Takeaway: Don’t wait for a recession to prepare for one.

Begin preparing to give yourself a little added protection to help you live through the inevitable. The unavoidable may not occur today. Perhaps not tomorrow. Perhaps…well, you get the point.

This is not investment, tax, or financial advice. For counsel on your specific circumstances, you should seek the opinion of a qualified expert.

The post Three Recession Risk-Mitigation Strategies appeared first on SmallBizTechnology.

Whether you own a marketing agency, a construction company, or a legal office, paying the bills and keeping track of the books is challenging work for any organization. When things go wrong, traditional finance and accounting methods have traditionally produced stress for everyone concerned, as well as financial ramifications. However, there has been an inflow of new digital payment solutions meant to assist small firms in developing effective procedures. Such procedures as receiving, collecting, and managing B2B payments help them stay competitive.

Experts teach us how to move toward digitizing payments and how small companies may use new fintech trends to improve their operations since working in the payments industry. And you’ll need a good accountant.

Pain Points in the AR/AP Process

Paper checks still accounted for 42% of all B2B transactions in 2019.

However, there are several drawbacks to this payment method, including high processing charges, payment delays, fraud risk, and even payment problems.

Despite the drawbacks of using analog checks and a laborious AP/AR procedure, many small companies have been hesitant to explore other payment options.

However, Covid-19 and subsequent payment-related advances have expedited the pace of digital transformation. Advances allow for several years of mainstream use of digital technology.

When they switched to a virtual workforce, employees needed to adapt their payment procedures swiftly. Employees couldn’t wait for accounting to cut a paper check. Approximately 82 percent of SMBs stated they were modifying how they processed and received B2B payments due to the epidemic.

SMB User Experiences Improved Across The Board

When digital finance solutions and ERP software first became popular over a decade ago, it was with enterprise-sized businesses in mind.

Because big corporations had the means to adopt, administer, and pay for the platform, the sheer difficulty of handling the corporate finances of massive enterprises would drive the industry.

On the other hand, small and middle-market firms lack the resources to support the technical installation. Similarly, the administration of these solutions.

Still, they do not have the exact requirements of major corporations. Fintech of today is the answer.

Well-known solutions of fintech have leaped on the potential to innovate as players struggle to scale down their platforms for smaller sectors. Consumer expectations have shifted beyond the applications they use in their personal lives. Consumers are now expecting the same from the tools they use in their professional life.

Fintechs are creating platforms that aren’t reliant on having dedicated team members to set up and personalize the software.

Card providers aim to dominate the end-to-end process of spending and cost management. SMBs may choose from various technologies to fit their specific financial requirements, including quick onboarding for their finance personnel. The tools are easy to use and accessible, with peer-to-peer distribution and a straightforward approval structure.

The Rise of AP Digitization

There has been an increase in Accounts Payables solutions attempting to address several of these issues. Streamlined workflow, cost reductions are among the first advantages. Enhanced cash forecasting, speedier settlement, and improved customer-supplier relationships are a few more advantages.

However, many businesses invest in AP automation solutions to help with invoicing processing.

New automation technologies are features to automatically code bills and identify data. The abilities grow to automate approval procedures, and even warn things like duplicate invoices and other abnormalities. Roughly 58.7% of firms report they’ve observed fewer invoice processing mistakes after using AP automation technologies.

Cards That You May Use Virtually

Many companies have also embraced a virtual card model. The model allows workers to make purchases and process payments using a single card number.

Of course, it has a spending limit, ensuring more security and transparency.

Virtual cards provide companies with robust controls and real-time data to help them monitor and manage their expenditure. Virtual cards’ digital nature enables organizations to improve their accounts payable operations.

Therefore, the digital nature will address various payment and expenditure management difficulties.

Trends in Digital Payments in the Future

Many of the innovations that Covid-19 expedited are here to stay. That is to say, the digital payments sector is continuously developing as the globe opens up again.

According to PwC, the move toward digital payments and a cashless society will continue: from 2020 to 2025. Cashless payments will rise by more than 80%. However, experts also identified digital wallets as one of the main trends driving the change. Equipped with the usage of digital wallet-based transactions, experts want to see an increase of 7% this year.

Traditional payment providers will engage with fintech and technology providers to develop and fulfill consumer and company demands. Respondents who provide this information were 86% of the financial sector.

Adapting to a Changing Market

Today’s entrepreneurs and investors are more eager than ever to upgrade the financial services sector.

In 2021, 82% of Americans utilized some digital payment. Therefore, these same consumers are pushing harder than ever for their commercial applications and service providers to give comparable consumer-like experiences in their regular business interactions.

Banks are rushing to compete, focusing more on innovation initiatives to satisfy the demands of clients. Numerous fintechs provide innovative expense management and bill payment products, as well as “neo banks” venturing into the commercial sector to service the needs of small companies.

Small companies who want to improve payment and cost procedures should speak to their bank and credit card partners about new digital payment alternatives. Companies will be spoiled for choice when implementing digital payment solutions.

That is to say, big changes are afoot with fintech upsetting the industry and banks establishing competing options. As a result, businesses will benefit from improved cash flow management and simplified operations. It all boils down to how loud the chorus sings above the band.

The post Fintech: SMBs Are Getting On Board With Digital Payments appeared first on SmallBizTechnology.

The IRS published tax guidelines restricting the scope of section 1202. Section 1202 allows taxpayers to exclude capital gains from the sale of QSBS provided specific requirements are satisfied.

This is one of the IRS’s strictest gain exclusion rules. Will it impact the growth of small businesses?

The latest recommendation was CCA 202204007 (November 4, 2021), which went public on January 28, 2022. This guidance comes from the IRS Office of Chief Counsel in Washington, D.C. To avoid fines, taxpayers must have “substantial authority” for the tax treatment of an item.

Significant authority correlates to a 40% success rate. Filing that document with a tax return is like waving a red flag in front of the IRS and requesting to be audited.

CCA

CCA taxpayers sold appreciated stock and claimed capital gain exclusion under section 1202.

The CCA examines whether the firm is involved in a qualifying trade or business (QTB). Except for those designated in section 1202(e), every company is a QTB (3). The applicable exclusion is for “brokerage services.”

The IRS decided that the taxpayer was not a typical broker since it did more than an intermediary. The judgment narrowed the brokerage services exception, allowing more taxpayers to qualify for the QSBS deduction.

Officials summarized this judgment before.

Potential lessees utilize the site to make nonbinding reservations for particular amenities. Likewise, once a lessor and lessee have agreed, they sign a lease agreement and make all lease payments online. The website also hosts web pages for lessors to use to lease their facilities.

Brokerage Services

The IRS found the company’s business of administering the website includes “brokerage services” based on these facts, which may surprise the taxpayer. After all, the firm acts as a mediator between lessors and lessees, which is exactly what a broker does.

The IRS concluded that neither section 1202 nor case law defines “brokerage services.”

It next examined the definition of “broker” in the dictionary and other sections of the Internal Revenue Code that provide similar exemptions for brokerage services. The IRS defines a broker as one who works as a middleman and one who is hired by another to negotiate contracts or act as a mediator, particularly between potential buyers and sellers.

The IRS noted that there are different types of brokers. Just because you don’t usually get the reference as a broker does not exclude the likelihood you are one.

The IRS looked up similar tax rules. One section on information reporting described a broker as “anyone who routinely acts as a middleman about property or services” for a fee.

Although the requirements in that part restrict information reporting to brokers who only deal in specific kinds of financial assets, the IRS concluded that the definition of a broker remained wide enough to extend to the company’s internet activities.

The law also contains a broker ordering regulation that applies to different brokers. As used in this regulation, a real estate broker is in charge of concluding the deal, as well as the seller’s and buyer’s brokers.

IRS Rules Tax Provision

For example, a taxpayer provides brokerage services to perform customer transactions and is compensated based on actual trades.

The business operates as a mediator, connecting buyers and sellers, and does more than merely passively display ads on its website. It also does not present consumers with content or targeted advertising based on their search history.

In exchange for facilitating lease agreements between prospective lessors and lessees of real estate, the firm charges a fee.

The CCA is the IRS’s sixth QTB declaration and the first to declare the company is not a QTB. The circumstances of the CCA do not favor the taxpayer. As a result, it is difficult to claim that the new guideline constitutes a paradigm change at the IRS.

The implication appears to be that the IRS is scrutinizing QSBS exclusion claims and will not hesitate to challenge taxpayers’ claims. Taxpayers requesting a QSBS exclusion should record their share and engage with their consultants to ensure sound arguments.

Tax Yourself…to Protect Yourself

In conclusion, tax yourself first. Before the Treasury Department has to do it for you.

However, this means good bookkeeping and excellent data retrieval ability. Use a cloud platform you can trust. If you can’t do it yourself, hire or outsource it.

The rules change constantly. If you can’t keep up, get an expert. Fines and interest on taxes mount up fast. Don’t get caught in that trap.

The post IRS Limits QSB Stock Tax Exclusion appeared first on SmallBizTechnology.

It requires significant effort and is time-consuming to pull out the previous year’s receipts and statements. Plus, it necessitates that you work for extended hours, and do everything needed to file accurate taxes and meet compliance.

Why is tax season a crucial time for business owners?

Tax preparation is comprehensive and complex, especially if you do your own business taxes. So, be prepared to pull out considerable time from your daily schedule, putting aside some core roles.

Additionally, since you are probably not a tax expert, you might end up putting your firm at risk of an audit. Here are the most common reasons businesses get audited:

• typos, errors, or overlooked mistakes;
• filing wrong forms;
• reporting incorrect financial information;
• regularly filing tax returns post due date; and
• filing excessive write-offs.

Due to the above-mentioned reasons, many firms choose tax preparation outsourcing. This preemptive tactic ensures taxes are managed well in the hands of professionals. However, there are many solutions to prepare your business taxes and make this time a little more manageable.

Six Tips to Deal with the Busy Tax Season

1. Start now.

First things first. Make it a habit of updating your books daily or weekly.

Maintaining your financial information timely can help make things a lot easier for the hectic tax times. Like everyone else, you also don’t want to spend your weekends digging into invoices and receipts to meet the deadline.

Keeping all things aside, though tax season seems a difficult time, you need not worry. Even if you don’t have your financial papers yet, don’t worry! Instead, start today. You can even start now. As soon as something reminds you of taxes, do some work for it.

For example, you can start collecting all the information required and prepare a data set for other processes. Getting started as soon as possible will speed up tax preparation and reduce the associated burden and stress.

2. Review all transactions to ensure accuracy.

When it comes to calculating business taxes, you need high-quality financial data. And to make sure the numbers are correct, bank account reconciliation is the best way to go.

This side-by-side comparison between your company’s books and bank account statements reveals mismatched entries (mistakes or errors). These errors can result in ruining tax calculations.

Bank account reconciliation also gives you more reliable information to determine your tax liability. You should review transactions regularly. Why do this? You must have correct numbers for tax filing to meet GAAP guidelines. By doing that, you avoid penalties and comply with regulations.

Business professionals may also benefit from errors and omissions insurance that shields them against financial errors or negligence.

3. Organize all financial papers.

One of the best ways to make your tax season hassle-free is to update your financial record from time. Also, you want to keep your records organized — always.

The IRS mandates documented proof if you apply for tax deductions. Thus, having an organized, quickly-accessible set of financial records can help reduce tax prep time and effort.

However, if you have never maintained any records, now is the time to spend some hours collecting the required information. This information includes:

• personal details;
• business information;
• important financial documents (like income statements, P&L statements, balance sheets, etc.); and
• financial reports.

Also, make sure you do it quickly. As soon as you organize the information, it will be easier to prepare tax files. Not only will you be able to find the necessary documents, but you will also file your taxes on time.

4. Take advantage of technology.

Technology has advanced quickly in the last two decades. Today, most businesses depend upon it for many processes. You may also consider leveraging technology for your accounting and tax preparation needs.

A wide variety of software applications are available in the market. These applications can assist with various financial accounting functions such as expense tracking, generating statements and customized reports, determining deductions.

All these tasks are necessary for tax filing purposes. The software can help perform the same easily and quickly, making your tax season less complicated and hectic.

Moreover, various tax institutions worldwide, like the IRS, allow users to file their taxes via approved online tax-filing platforms electronically.

5. Keep yourself updated about tax laws and news.

Tax laws often change. Therefore, even if you have deep knowledge of regulations, it is always beneficial to review them before preparing your taxes.

For example, you might be eligible to file some COVID-related tax credits due to the recent pandemic. But if you are not keeping yourself updated about the latest changes in tax laws, you might miss such opportunities.

Since inflation impacted the economy, the income tax brackets in the U.S. will most likely be higher in 2022. Additionally, some tax rules might be retroactive to the fiscal year 2021-22.

Fortunately, you can keep updated about tax law amendments by subscribing to news alerts and resources providing authentic information. If you cannot find any resources you trust, consult a professional and ask them for help finding resources.

6. Do not hesitate to get external support.

Being a business owner, you likely have minimal knowledge of taxation regulations. However, even if you have excellent tax accounting skills, there’s only so much you can manage on your own.

Tax preparation is complicated. The level of expertise it requires and the sudden increase in tax workload impact the busy tax season’s challenges. If you face issues managing your taxes timely, it is best to seek external support.

The sooner you involve a professional tax preparer, the better you’d be prepared for taxes.

Many businesses consider tax preparation outsourcing a strategic option. Outsourcing ensures timely tax preparation, saves on tax prep costs, and enables in-house teams to focus on daily roles. You may also outsource tax preparation to reap these and other relevant benefits.

Improving Your Tax Season

There are ways you can make your tax season a little smoother and more efficient. If you have a set of documents organized in the best manner, ready to be used for tax filing.

Additionally, you can choose a reliable partner to handle your tax preparation. Doing so will let you have all your focus devoted to core business and growth.

The bottom line is setting yourself up for success allows you to stay focused, even during the busiest tax seasons.

The post Top Tips to Manage the Busy Tax Season Rush appeared first on SmallBizTechnology.

What is virtual real estate?

Thanks to the advent of VR technology, the concept of virtual real estate is on the rise. In fact, it can be a major game-changer for the real estate industry in the coming years. Reports suggest that the VR industry is already worth a whopping 15.81 billion as of 2020.

According to a survey, nearly 54 % of potential homeowners search for properties on the internet first before scheduling a meeting. The amalgamation of virtual reality with the online transformation of the real estate sector is bound to deliver amazing results.

To further demonstrate its amazing benefits, here are five ways in which virtual reality can help transform your real estate business.

1. Home Touring and Selling Efficiency

Perhaps the biggest and most significant benefit of VR is the ability to tour properties from the comfort of your home. Prior to VR, a prospective client had to drive or walk around the area and explore the properties in person.

However, many software companies have now created cutting-edge VR software that provides a very realistic, interactive rendering of the property. These VR software packages can help prospective homebuyers and renters alike in virtually gauging the property online.

Furthermore, it offers incredible comfort not just to buyers but realtors as well. They don’t need to travel incessantly to make a sale. Overall, it has led to an exponential increase in property viewings. With VR, selling a home and improving your business is nothing short of a cakewalk.

2. Virtual Staging

Conventional real estate home tours involve walking around empty rooms in a house. As a realtor, it can be a struggle to sell an empty apartment or house to a potential client. The prospective buyers or renters can struggle to visualize a home when they have little to fuel their imagination.

To mitigate this, staging a property with nice furniture and fixtures is much more appealing to a customer. Almost 77 % of active realtors agree that aptly staging a house helps clients feel more connected to the property. The only caveat is that it is quite expensive to stage it physically for each property.

However, virtual staging blows both of these problems right out of the water. Realtors can now showcase their properties through virtual staging and impress potential clients to close the deal.

3. Virtual Commerce

The fantastic benefits of VR technology don’t just end with home tours and virtual staging. It also promotes virtual commerce to a whole new level. You can help the client with ideas to decorate the space by tastefully staging the property with decor and furniture.

One can click on a particular item during a home tour to reveal its price and vendor info. This helps the customer to purchase items for the home online at a moment’s notice. They can also replace a particular product or decor setting with another online purchase that suits their taste.

This offers an incredible level of interaction with the property which might not be possible during a real-time viewing. Overall, it boosts the virtual commerce aspect as well as bolsters the reputation of your business.

4. Architectural Visualization

Virtual staging is a great tool to sell already-built homes. But what about yet-to-be-built properties?

Traditionally, realtors showcase small, layout models of the property and the locality to paint a better picture. For the interiors, however, real estate businesses often create showrooms where they display full-scale models of the property.

This is, of course, not ideal from an economic standpoint.

Thankfully, VR technology has a solution for this problem too. With the help of virtual reality tools, realtors can impress customers with incredible detailing of the property’s interior and exterior.

Thus, architectural visualization through VR can be done at a fraction of the cost of the physical setup. This can ultimately help real estate companies to drum up more business.

5. Improved Client Communication

Finally, with the advent of VR, spotty client communication is a thing of the past.

When it comes to renovation projects, this technology helps in keeping the customer updated about their property. Through a virtual tour, all the concerns regarding the particular property can be addressed with ease. It also helps realtors to convey these problems to contractors and the renovation team with ease.

Sometimes, when a new tenant moves into a property, they can have queries about operating certain appliances or plumbing. This problem is especially common where there is a massive communication gap between the property owner and the tenant. The vacation rental industry has been plagued by issues of flawed communication for years.

This can all be easily mitigated with the help of a virtual tour and an interactive video. The importance of VR in vacation rentals is even more pronounced as these properties have a massive turnover rate. This further emphasizes the role of better communication with tenants.

Concluding Thoughts

These aforementioned five points make a convincing statement regarding the importance of using virtual reality in the real estate sector.

If you’re still on the fence, it might help to remember that VR is still in its infancy. The technology is set to evolve by leaps and bounds in the coming years, potentially impacting all aspects of life. As a result, it’s best to stay ahead of the curve.

The post 5 Ways Virtual Reality Can Transform Your Real Estate Business appeared first on SmallBizTechnology.

Before accepting cryptocurrencies, there are some major concerns, both technological and pragmatic. Do small companies need cryptocurrency? According to Business News Daily, certain blockchain companies are seeking to advance the area.

What is Bitcoin?

Cryptocurrency uses peer-to-peer (P2P) technology. This means that it is decentralized. It is also unregulated. As a result, it’s unbacked. Buyers pay merchants directly, without a middleman.

Cryptocurrencies take away the middlemen said Chris Poelma, a small business person who has started accepting some crypto payments. Rather than relying on a company to protect your funds, you keep them encrypted, and only you have the key.

As we learn more about data breaches and clever hackers, cryptocurrencies seem more enticing to customers seeking a safer method to transact. Small companies may opt to take cryptocurrency for a variety of reasons, including keeping up with technology, recruiting crypto clients, and reducing fraud.

Is it suitable for your company?

Advantages of Cryptocurrency

For small enterprises, cryptocurrency provides significant advantages over conventional point-of-sale systems.

Fee Reductions

The absence of a central middleman minimizes transaction costs. Small companies that accept credit cards frequently pay roughly 25 cents for each swipe plus 2 to 4 percent of the overall transaction. Smaller establishments typically set credit card purchase minimums due to these fees.

Trader Defense

Because of this, businesses enjoy protection against fraudulent chargebacks. No third party may overturn charges. Thus they are final. Business owners don’t need to dig through credit card receipt signatures to avoid chargeback fraud.

Sales Growth

The decentralized structure of crypto allows small firms to grow and reach new worldwide markets. Using Bitcoin, a tiny electronics merchant sold $300,000 worth of goods to over 40 nations.

Adaptable to Customer Tastes

Accepting Bitcoin gives clients more ways to pay while protecting their data.

Obstacles and Risks of Adopting Bitcoin

Acquiring a digital wallet on a cryptocurrency exchange may be difficult for small company owners inexperienced with the technology. Cryptocurrency is a complex industry with a steep learning curve, challenging to navigate while running a company.

Small firms, in particular, would find it difficult to accept cryptocurrencies. Even without technological issues, the volatility of crypto prices discourages businesses from holding digital currency.

Optherium, which will start its ICO in June, has already constructed a platform to address these issues. The Optherium B2C platform allows customers to pay in Bitcoin while merchants may accept any money, digital or fiat. The Optherium B2C platform lets buyers pay in whatever currency they desire, and sellers accept any.

They will initially offer 50 cryptocurrencies and a broad range of fiat currencies, completing 100,000 transactions every second. Optherium has its token, although it isn’t required to utilize it. Instead, holders of Optherium’s own coin will benefit from even cheaper platform costs.

Volatility of Bitcoin

The most volatile aspect of digital currency is price volatility.

For example, Bitcoin stood at $19,172 per coin in December 2017, up from pennies in 2009. You’ll need to arrange for the conversion of your bitcoin back into your official currency, said Areiel Wolanow, managing director of Finserv Experts. Cryptocurrencies are volatile, so do this fast and often.

Using a merchant service provider such as BitPay or Coinbase protects small companies from the volatility of the digital currency. These platforms allow users to pay in real-time for cryptocurrencies.

Keeping cryptocurrencies as a speculative investment is the sole justification, according to Wolanow, but it’s practically gambling with your earnings.

Cryptography Safety

While bitcoin transactions remove dangers like stolen credit card data, they aren’t entirely secure. There is currently no method to entirely protect consumers’ funds from fraudsters.

Cryptocurrencies, unlike fiat currencies like the U.S. dollar and the Euro, are not backed or guaranteed. But some Bitcoin startups want to alter that.

Coinbase, for example, retains less than 2% of users’ digital money online and completely guarantees losses. Like regular banks, the FDIC insures Coinbase’s fiat currency up to $250,000. It’s still your job to safeguard your account. However, you can rest easy. If someone hacks your firm, all is not lost. Assets are protected. You can protect your accounts by enabling multifactor authentication, safeguarding your secret keys, and frequently backing up your data.

Companies are also working on wallet security solutions. According to Beck, Optherium uses biometric verification to identify users based on face anatomy, making it difficult for thieves to take someone’s assets. This strategy also helps users recover lost wallet access.

Uncertainty in the Market

Accepting cryptocurrencies also poses the risk of legislative changes shortly. Regulators are still working on it.

Regulations will undoubtedly alter once in place, so company owners must be agile. Because cryptocurrencies are new, it’s unclear how the government will regulate them, Poelma added. New rules may be in effect by the time you read this!

To be broadly recognized, firms must be assured they understand how to declare profits and pay taxes on bitcoin transactions.

The post Bitcoin: What Small Businesses Need to Know appeared first on SmallBizTechnology.

After the last year, more small and medium business owners are realizing that having Managed IT is a way to remove unnecessary headaches, sleepless nights, and lost weekends. Savvy small business owners know that they need to use technology to grow. 

Switching to a managed service comes down to three core benefits: reduce complexity, boost efficiency, and trim costs. Let’s explore each one and see how this may help you.

Reduce Complexity

Don’t you have enough to do with managing your business, creating innovative strategies, building strong teams, and delivering exceptional customer service? Do you need to spend your spare hours reading a tech manual or learning about network monitoring? 

If you’re in a service business and relying on a physical location, you already have your hands full and your hours accounted for. You know that every minute you’re spending on technical services is time away from the people-centric activities that make your business succeed.

But it doesn’t change the fact that you need to be up to date and at optimal functioning to keep your business state of the art. Reducing complexity is a daily mantra for every small business owner. Especially during the holidays, reducing complexity is the key to coping with stress, pressure, and longer hours. 

Here are four essentials that are likely to elicit a sigh of relief:

• A 24/7 Help Desk so that every request for help gets a rapid response.
• Remote Network monitoring so you know everything is functioning perfectly around the clock.
• Remote and on-site support to solve issues quickly and efficiently.
• Routine maintenance to make sure technology is up-to-date, secure, and backed up.

If you’ve been struggling to do these basics on your own, with the help of your family and friends, or leaning on a small internal team of tech wizards—you are in for a treat. 

Boost Efficiency

The benefits of managed IT services can go way beyond these critical essentials. It can provide you with peace of mind, improved efficiency, and increased customer satisfaction. If you’re growing into new lines of business or new geographic areas, managed services are the key to unlocking unrestricted expansion. 

You can reduce stress and improve employee morale when you let an outside IT managed services team take the load off of your internal team. You’ll provide your staff with access to expert support, and remove the burden of preventative maintenance. Ask your staff for their input…you’ll find that they are more than happy to let experts do the heavy lifting.

Trim Costs

If you’re a small business owner, you may have been holding back for one big reason: the cost. This reason seems valid until you examine it more closely. It turns out it can be much more expensive to train and support an in-house IT team. You could be looking at thousands of dollars, depending on the size and scope of your operations. 

Alternatively, managed IT services tend to run from $100 to $150 per person per month. This could average out to much less money than you have been spending. Money and time are the ultimate levers of success in a small business, but you still need to factor in the unknowable elements. 

For instance, what is the cost of a technology glitch? What will it cost you in sales, service, or customer loyalty? Ultimately, you’ll save a lot more money by preventing costly downtime or recovery time.

Finding The Best Fit for Your Business

How can you find the best-managed service provider for your business? Start with a core list of your values and needs. Four essentials for selecting a provider you can work with over the long-term include:

• Communication skills. You want to know that your needs, wants, and issues are being heard and given top priority.
• Expert skills. Technical expertise and insights into industry trends will keep your company positioned for success.
• Collaboration skills. Partnering together will help you innovate for current needs and anticipate future developments to stay ahead of your competition.
• Agile skills. Adapting and staying flexible will help you and your IT partner start, learn, and grow without limiting you to a fixed obligation or operation.

As you explore the next steps in managed IT, keep an open mind and discuss options. You may find that a dedicated team helps you to reduce stress and grow your business.

The post Three Benefits of Using Managed IT in Your Small Business appeared first on SmallBizTechnology.

VAT Recovery

It’ll take an experienced and qualified professional to ensure that your company receives all of the recoverable Value Added Taxes you’re due. When employees without experience in international VAT recovery manage that aspect of your business, they will surely make mistakes. This issue can end in taxes not being recouped. That means a loss of money for the company.

Best Deals

It’s always a promising idea to try to get a better deal on whatever you pay for to save your business money. This deal search includes website hosting, catering services, software, and anything else you buy. Nevertheless, negotiation can be a form of art. If you aren’t familiar with it, begin slowly, and learn from those who have a lot of experience. 

Fewer Meetings

Meetings can waste both time and money for any company. If you read the Harvard Business Review, you’ll see that there can be problems when meetings get scheduled and held without regard to their impact on both solo and group work time. However, when done right, they can move projects along and be helpful to the growth of the business. When done poorly, they can hinder the business. Try reducing the number of meeting participants to the bare minimum if you want to keep things productive and save your business money.

Remote Work

A workforce that’s able to work remotely has many benefits to offer. First of all, employees choose to work from home more often because it provides an improved balance with their home life. Also, it gives way for you to save your business money because the workforce is more flexible. You might even be able to see lower costs for your office space.

Take the Lead

One fantastic way to save your business some cash is by taking the lead and setting an example for your employees. If you’re lax with your expenditures, your employees will be too. Keep in mind that social influence is a tool that’s quite powerful.

Marketing

It can be rather expensive to run ads in print and on TV. Instead, turn to lower-cost methods of marketing to save your business money. The various forms of digital marketing, when compared to marketing on TV, are more cost-effective and can provide payoffs that might surprise you. For example, if you effectively market on social media for only about 6 hours each week, the cost is zero (for sites like Twitter and Facebook), and you’ll reap the rewards of a lot more business.

Understand the Clientele

If you don’t have a good understanding of who your customer is and what they need from you, you can end up wasting money at each level of your business. You’ll make products that don’t have value to the customer, and you’ll spend a lot of money marketing to people who aren’t interested in them. Instead, define your target demographic and then integrate the strategy you have for your business to provide people with what they need/want.

Cutting your costs is a critical part of running a business, but don’t just view it as an exercise in cutting expenses – a lot of the ideas you’ve just read about can have other positive sorts of effects. Also, realize that you’re effectively shooting yourself in the foot if you ignore this aspect of the business. 

The post Innovative Ways to Save Your Business Money appeared first on SmallBizTechnology.

Savings and Debt

If you aren’t saving any of your money, that’s a good place to start. To figure out how much you can spare or how much you can reasonably save, you need to examine your cash flow. Figure out a budget. Write down your income then make a list of all your living expenses. Start with your necessities like rent/mortgage, utilities, and car payment. Then list all of your other expenses, including outstanding credit card balances. 

While you’re examining your cash flow, pay attention to where you may be overspending. For example, are you subscribing to several streaming services? If so, you need to decide where you can cut back. There are frivolous expenses and necessary ones. Whereas you have to have car insurance, getting life insurance is an elective purchase. It can be confusing trying to figure out how much life insurance you need. Meeting with the provider can help determine which insurance would best suit your needs as well as how much coverage is adequate and what fits in your budget.

Beyond The Budget

Making your budget is a very important step in taking control of your money, but it’s not the only step. In fact, creating your budget is probably one of the easiest things you can do. As with all good intentions, they are only as effective as the follow-through. You need to exercise a fair amount of discipline to stick with it.

Think about your personal financial goals; including both short and long-term. What are you hoping to achieve and what will it take to get you there? Having a clear definition of your goals is a necessary step to achieving them. 

Do you have an emergency fund? It’s important to have a safety net in place for when life throws an unexpected curveball. You never know when you’re going to have expenses you didn’t anticipate. It always seems these things happen at the worst time. If you’re prepared with an emergency fund, getting through tough times won’t be as stressful. 

Make sure you have separate accounts for both spending and saving. Most banks will let you have multiple accounts so you can track your progress between the two. Keep in mind, your emergency fund is different from your savings. By separating the two, you will avoid dipping into your emergency fund for things that aren’t urgent. If you are trying to save for something special like a vacation or Christmas budget, make those separate accounts, too. You’ll see how close you’re getting to your goals and feel excited and proud of your accomplishments.

Find ways to save money by changing shopping habits. Keep an eye on current sales and shop for what you need where they’re most favorably priced. Also, take advantage of other money-saving tools like manufacturer coupons and rebates. You can get what you need for less. 

Don’t be a brand snob. You can save money on your grocery shopping by substituting store brands for their more expensive counterparts. Most off-brand products are of comparable quality as the more well-known popular brands at a fraction of the cost. 

Now that you’ve done your shopping, make sure you eat at home. The cost of eating out regularly is a quick drain on resources.

You don’t have to be a financial genius to make small changes to save big money.

The post Make the Most of Your Money appeared first on SmallBizTechnology.

to call your bank or talk to a finance specialist to get a better understanding of your finances. With the right money management app, you can quickly check your budget before deciding whether to make a purchase or not. Money management apps can help you to hold yourself more accountable for purchases and spending habits.

You Can Learn More About Your Finances and Credit With Money Management Apps

You may want to know the answers to frequently asked questions, like how can credit cards be more secure than cash or what’s the best way to pay off debt fast. Money management apps are designed to educate you along the way. You will learn special tips and tricks to raise your credit score and build positive financial history. It is never too late to start learning about your finances and credit. Take advantage of all the resources and tools at your disposal.

You Can Track Your Spending Habits

After downloading a money management app, you might decide to start tracking spending habits. Small purchases add up. You might be surprised by the monthly or yearly impact of habits like vaping or drinking. Money and personal finance apps often use graphs and other tools to help you visualize your current spending habits. From there, you can assess what you are doing well and what you might like to change. Once you set a goal to spend more responsibly, you can use money apps to keep track of your progress towards that goal. Watching your spending habits change for the better over time can be highly rewarding.

You Can Budget

A personal finance app can also help you to budget your money better. First, you can keep track of direct deposits and other payments that you have coming into your bank account. You can budget different amounts of money for savings accounts, rent, loan repayments, utility bills, car related expenses, grocery shopping, childcare, medical expenses, leisure, and other life expenses. Doing all of the math required to make a tight budget work can be difficult. Money management apps can help to take some of the guesswork out of this process. If you are spending too much money in one area, you might try to change your habits so that they are more cost effective in the future. For example, you may have a tight food and grocery budget. Instead of eating fast food every day, use store brand grocery items and coupons to save money.

You Can Save Up Money and Plan for the Future

Tracking and planning your spending habits can help you in a variety of different ways. Many people find that they are able to save more money when they track and plan their finances using a money management app. Saving money is important, even if you do not make a lot of money at work. You need to save money in case of emergencies, medical bills, moving expenses, job loss, and other potential situations that can arise in life. In general, it is smart to put at least 10 percent of your income into a savings account that you do not touch.

There May Even Be Bonuses for Sign Up or Referrals

Some money management apps even offer cool bonuses for users when they sign up or refer new users to their platforms. You might be able to take advantage of paid app features for free or for a discounted rate. You may even receive cash or prizes. Some money management apps host fun contests and giveaways that their users can take part in.

If you want more control over your money – especially if you’re working on a tight budget, using money management apps should be able to help you.  Between tracking your funds, scheduling payments and setting money goals for the future, these clever smartphone money apps can really save you in many ways.  Once you take the time to select the right money personal finance apps for you and your financial needs, you will be off and running towards a happier, healthier bank account.

The post The Growing Popularity of Money Management Apps appeared first on SmallBizTechnology.

It doesn’t take a higher-paying job or a hefty sum from a friend to improve your financial position. Many people find that the ability to manage their money is all that is needed to lower their expenses. It also improves their capacity to save and invest and meet financial goals that were once thought impossible.

If you think your finances are in a bind without a way out, there are plenty of options to make things better. Here are seven ways to help you get started.

1. Keep track of your spending in order to increase your financial stability.

If you’re not sure of the amount you’re spending every month, there’s a good chance that your personal spending habits are in need of improvement.

A better way to manage your money begins with a better understanding of your spending. Utilize a financial management program such as MoneyTrack to monitor spending across various categories. Discover the amount you spend on things that aren’t essential such as dining or entertainment. Or Starbucks.

Once you’ve mastered the habits you’ve been practicing, you’ll be able to create a plan for improvement.

2. Set up a realistic monthly budget.

Compare your spending habits for the month along with your take-home income for the month to establish a budget.

It’s not a good idea to set a budget based on radical changes. Create a budget that’s compatible with your spending and lifestyle habits.

A budget should be seen as a means of encouraging healthy habits. For example, cooking more at home will give you a realistic chance of being able to meet your budget. This is the best way to manage your money.

3. Start saving, even taking some time.

Create an emergency account that you can draw from when unexpected circumstances occur. Even if your contribution is tiny, this fund could protect you from dangerous situations that require you to take out loans at high-interest rates or even be in a position where you are unable to pay your bills in time.

Additionally, you should contribute to general savings accounts to increase your financial security in case of an unexpected job loss. Make automatic contributions to your bank to increase the amount of money in this account and help you keep the habit of saving funds.

4. Make sure you pay your bills on time each month.

Making sure you pay your bills on time is a simple method of managing your money efficiently, and it has many benefits. You can avoid charges for late payments and it helps you prioritize your spending. A solid history of timely payments will also boost your credit score. It may lower the interest rates you pay.

5. Cut down on the recurring costs.

Do you have subscriptions to services that you don’t use? You can easily forget regular subscriptions for streaming services as well as mobile apps that debit your bank account, even if you don’t frequently use these services.

Check your expenses for costs similar to these. Think about cutting off unnecessary subscriptions so you can keep more cash each month.

6. Make sure you have enough cash saved to pay for large purchases.

Certain types of debt and loans can be beneficial when it comes to important purchases. For example, the purchase of a home or vehicle that you require in the present. But for other major purchases cash is the most secure and affordable buying alternative.

If you make your purchase with cash, you’re avoiding making interest payments and creating a loan that will take months, or usually, years to repay. While you wait, the saved cash can be deposited in an account and accrue interest. This can then be used toward your purchase.

7. Begin to develop an investment plan.

If your capacity to invest isn’t great, even small investments to your investment accounts can allow you to use the money you earn to generate additional income.

Find out if your company provides a 401(k) match that basically functions as free cash. You might want to consider opening a retirement account or another savings account.

The road to better financial management begins with changing your personal routines. Certain changes may be more simple for you than others. If you keep a positive attitude towards this change you’ll be able to develop amazing financial management skills that will last for the rest of your life. And in time you’ll have more cash in your pockets.

The basis of effective budgeting is a strong budget. Start creating your own budget by downloading any online financial guide tutorial today.

The post Tips to Enhance Your Financial Position appeared first on SmallBizTechnology.

While those with the skills and experience are encouraged to do home repairs themselves, the rest of us are better off hiring an expert to get the job done right. However, finding and hiring the right contractor is easier said than done. With this in mind, let’s take a look at seven tips for hiring home improvement contractors:

Check The Credentials

Most home improvement projects require specific skills and expertise to be done correctly as well as safely. Ask to see a contractor’s credentials before hiring them for a home improvement project. Start with safety. A home improvement contractor should have OSHA 30 certification while anyone working for them should have at least OSHA 10. Once their safety record is confirmed, move on to ensure they’re properly licensed for whatever type of work they’re hired to perform, such as plumbing or roofing.

Read Home Improvement Contractor Reviews

Most home improvement contractors will have multiple online reviews you can read to see what prior clients have said. If there are no available reviews, ask for at least two references. While a single bad review shouldn’t disqualify someone from working on your house, a pattern of negative feedback should be interpreted as a red flag.

Get Rates On Home Improvement Projects

When asked what he thought about while waiting on the launchpad, astronaut Alan Shepard famously said, “The fact every part of this ship was built by the lowest bidder.” Similarly, homeowners need to keep in mind the relationship between a product’s price and a product’s quality. While the cheapest option can get the job done, it doesn’t always mean the savings are worth what you’re missing.

Get it in writing

Formal contracts should always be a part of any business transaction where significant sums of money are exchanged for crucial products and services. Luckily, you don’t need a lawyer to come up with a legally binding contract. Plenty of templates exist online for you and your contractor to sign together.

Prepare For the Home Improvement Project

The plumbing contractor isn’t responsible for finding you a replacement shower while working on your master bathroom. It’s on you to prepare for the disruptions that come with a significant home improvement project. From parking to sleeping, stop and consider how everyday things you take for granted could be thrown off by the project and make plans to maintain normalcy as much as possible.

Keep accurate records

In addition to copies of contracts, it’s a good idea to get copies of receipts, permits, and other documents. Ask your contractor for the original documents whenever possible. It might also behoove you to take photos of the project as it progresses in the event of malpractice on the part of the contractor or any subcontractors under their employ. Such documentation benefits everyone involved.

Go with your gut

You can’t go wrong with going with your gut. While instincts about others aren’t always correct, homeowners can’t afford to take a chance on someone if they’re not convinced of their credentials or confident in their abilities. The pool of candidates is too great to settle for anything less than a contractor you feel good about going forward.

Sooner or later, whether your home is newly built or a century old, you’re going to face necessary repairs and improvements. Unless you happen to have experience with home improvement projects, the best option is to hire a contractor to get the job done on your behalf. Finding the right one will prove critical.

The post 7 Tips for Hiring Home Improvement Contractors appeared first on SmallBizTechnology.

However, as most people know, improving personal finances is easier said than done. Fortunately, there are several essential tips and suggestions one can use to make the process as easy and hassle-free as possible.

The following are five money management options that could help you get that freedom you’re seeking:

1. Open a Savings Account

The first thing you have to work on is creating a savings account. Most banks offer some type of savings account and allow you to earn interest on what you put in there. It won’t be much, but it’ll be something. Of course, if you prefer to save without the bank, you could just put some cash aside every month and keep it in a safe place. Having healthy savings gives you peace of mind, and that’s what you want this year. It means you can deal with emergencies whenever they come up without stressing out.

2. Getting Rid of Debt

The next step in your money management plan for 2021 involves debt. Many Americans are dealing with some kind of debt, like student loan debt, mortgage, credit cards, and car loans. This can cripple your financial options. The sad truth is that if you can’t afford something with cash, you can’t really afford it. You need to be careful how you use loans. If you’re dealing with a lot of debt, you need to talk to a professional who can help decide whether debt consolidation is right for you, which is an excellent way to reduce debt.

3. Consider Investing

You need to grow your money without doing much. There are many investment opportunities out there for you, but there are a few key things to keep in mind. Never invest more than what you can afford to lose, and always do your research before investing. Keep in mind that all investments carry some risk. Popular options are stocks or real estate; it’s up to you. Stocks are risky investments, so make sure you find a way to calm your nerves if you’re thinking of playing in that market.

4. Cutting Back

You should think about cutting a few expenses. If you are serious about tackling debt and creating healthy savings, then this is a necessary step. No, it will not be easy because it requires some sacrifice, but you’ll be happier later on. Start by listing all your expenses and highlight every expense that isn’t necessary. All those streaming services aren’t needed to live, so try to keep only one or two. If your clothes are in good condition, then you don’t need another shopping spree. Be as brutal as you can, and learn to track your expenses every day to stick to your budget.

5. Learn More About Money Management

You may want to consider taking financial literacy classes if you’re serious about money management this year. These classes will help you learn how to invest your money, how to budget, how to create new streams of income, and how to set realistic financial goals. Financial literacy should be taught in school, yet it isn’t. Learning how to manage your money well can help you reach financial freedom early in life. You’ll learn to analyze contracts and deals a little more effectively. In essence, these classes will give you the upper hand when it comes to financial matters in life.

Money management will take commitment on your part, but you don’t need the stress associated with financial problems anymore. You need to take these steps for your peace of mind.

The post 5 Money Management Options to Consider in 2021 appeared first on SmallBizTechnology.

A survey by Deloitte revealed that 75% of CFOs expect the pandemic to have a severe effect on their business and don’t expect demand to return to pre-pandemic levels until later this year. However, they identified digitization and streamlining processes as the keys to helping their businesses survive tough times. It’s safe to say that these expectations carry over to small businesses as well.

Consolidating data is the first step companies ought to take when creating streamlined processes. Here are five benefits of financial data consolidation for organizations of all sizes.

1. Better Budget and Cost Projections

FP&A professionals routinely run into hurdles when completing monthly closes that are essential for budgeting and cost projection. Often, finance departments prefer to use old, trusty templates and add data from various parts of the business as needed. However, as the month draws to a close, all of these data have to be updated and verified.

A single platform that allows departments to input their data in their preferred format and automatically transforms it into the FP&A team’s chosen format will increase the pace of the monthly close. As a result, finance teams can provide the CFO with better cost projections that feed into working capital calculations.

An automated system that pulls in numbers from departments in real-time makes life even easier for finance teams. Thanks to breaking down operating expenses in real-time, business owners can have greater confidence in their numbers and create accurate projections.

2. Consistent Reporting

Excel is still the software of choice in many businesses and with good reason. It’s versatile and highly customizable. Also, every professional in the industry has been trained on it. Moving to another solution doesn’t make sense.

However, consolidating data in an Excel sheet is tough, especially for larger organizations. The best platform solutions augment Excel workflows instead of trying to replace them. By integrating these solutions with Excel, finance teams can pull data automatically into their spreadsheets and have them organized for analysis.

Teams can then export these data to ready-made report templates that change dynamically thanks to real-time data feeds. The result is a consistent report format that eliminates manual work and eliminates errors. CFOs and business owners can easily view the financial impact of their decisions.

Ad-hoc reporting is easy as well, thanks to integration which results in advanced filtering functions appearing within Excel. Teams can slice and dice data easily to present better insights during meetings and presentations.

3. Better Investment Decisions

Many teams rely on manual reporting processes and this only increases the amount of clerical work they have to carry out. Gathering data from varied sources only increases this work, and there’s little time left for analyzing numbers.

Automating data collection into a single platform eliminates the need for manual processes. It also frees up teams to execute value-add processes such as identifying key drivers in a business. Capital allocation is one of the most critical tasks in a business.

Teams can paint a more accurate picture of a business’ strengths and weaknesses by diving into COGS, Capex, Opex, and other financial data. Owners, armed with this knowledge, can make better capital allocation decisions and model different scenario outcomes.

For instance, owners can model the outcome of buying a smaller competitor versus projecting revenues by building a business unit internally. While surface-level revenue comparisons are helpful, consolidated data can help decision makers analyze the effect of demand swings on department budgets and second-order consequences.

4. A Single Point of Truth

Disparate data sources make maintaining data integrity close to impossible. When everything’s decentralized, finance team members cannot run accurate projections or have confidence in their numbers, because they’re never sure of how true their assumptions are.

While creating a shared Excel file allows multiple users to share their data on a single page, it complicates data integrity. Excel cannot create a cell-level audit trail that can identify sources of error. Neither can it automatically validate data and check it for consistency. Preventing double entries and redundancies is also impossible.

Expecting employees to manually validate cell-level data is unrealistic. An automated platform that integrates with Excel will have minimal workflow impact and will bring the power of technology to eliminate manual validation processes.

The result is a fully validated source of data that has high integrity. Teams can build projections using this base and execute their tasks better.

5. Easier Access to Insight

Analytics platforms are everywhere, but they’re only as good as the data they’re fed.

Businesses that have powerful analytics engines backed by manual data validation processes are not extracting the most benefit from their software.

An analytics package can’t shed insight into a company’s financials without receiving a full picture. By bringing all of their data into a single place, running analytics and dashboarding data is simpler. Armed with insight, businesses can make better decisions.

Worth the Migration

Consolidating financial data into a single place might require a change in mindset, but it’s well worth the investment. The benefits outweigh the friction, and companies can improve the quality of their decisions significantly.

The post 5 Benefits of Consolidating Company Financial Data in One Place appeared first on SmallBizTechnology.

Whenever you apply for a financial product — such as a credit card, loan, or mortgage — your application typically goes through a stage known as underwriting. During the underwriting process, the financial institution is looking at different characteristics of the customer. These typically include age, income, employment, and financial requirements. These criteria help them decide whether to approve the application and what rate they will charge.

Underwriting has moved away from the old process of being scrutinized by a bank manager on a case-by-case basis with that person making the decision. Listed below are some of the ways that underwriting has progressed significantly in the last decade.

The Use of Point Scoring for Underwriting Financial Products

Whenever a customer fills out an online application, that data can be evaluated against a lender’s preferred scoring system.

“With so many products like loans and credit cards, you can sometimes enter your details and get an instantaneous decision. What happens in between is that your data is scored against thousands of data points by that lender,” explains David Beard, founder of price comparison company LendingExpert.

“A lender or credit card provider might have 8,000 or 10,000 rules included in their scorecards. They’ll factor in things such as age, income, gender, residential status, and credit score. This is usually built-in using software or APIs. The lender will be collecting previous historical data. In this way, they have a good idea of whether a certain demographic is a better type of customer or is more likely to pay back on time.”

“Everyone might be given a point if they are a certain age or live in a certain area. Overall, a lender might say anyone that scores above 500 will be approved. If they decide they want to accept more risk, they can lower the score. Alternatively, if they want to be more risk-averse, they can up the score.”

Automated Credit Scoring

Credit scoring is certainly not new, but nowadays it’s astonishingly automated. Through the use of credit reference agencies or bureaus, a credit card provider or mortgage lender is able to pay $1 or $2 to a bureau and get real-time data on a customer.

This information typically includes how many other loans or forms of credit they’ve been applying for. It can also include how many debts they have outstanding. All this data will help the vendor make an informed decision.

Credit scoring is also very much based on numerical values and credit scores. This makes them easy to factor into the overall score and automate decision-making.

Using Social Media as a Factor When Underwriting Financial Products

Credit card processors have started factoring social media and email accounts into underwriting for many years. Neither of these tools was available a decade ago.

Whether evaluating the basics — such as Facebook, Gmail, or Linkedin — this provides an effective way to confirm that an individual is who they say they are. Moreover, it helps verify that the applicant is employed at the place they have claimed. This process can be automated, too. It’s not only useful for confirming names, locations, and employment, but it is hugely beneficial for fraud prevention.

Recent Use of Artificial Intelligence

The real art of good underwriting these days is to incorporate artificial intelligence (AI) into decision engines. Rather than having to constantly update scorecards, providers should be able to get real-time information of which customers are repaying on time and defaulting. They then feed this data back into their underwriting process. Essentially, the system “learns” and gets “smarter.”

Overall, the use of AI should make the underwriting process more effective, lower default rates, and maximize profits for suppliers.

The underwriting of financial products has truly progressed in the last 10 years. Going forward, we can expect that breakthroughs in AI, machine learning, and blockchain will have the biggest impact to scale processes and operations for companies in the financial space.

The post How Underwriting for Financial Products Has Advanced in the Last 10 Years appeared first on SmallBizTechnology.

Landing a corporate customer offers a ton of revenue security. Large enterprises are more financially stable than small or midsize businesses. They’re also likely to buy your most elite product or subscribe to your most expensive pricing tier. At the same time, cross-selling to other silos within their organization also becomes a possibility.

Make no mistake, all of these will transform your business. It will benefit your cash flow, your growth prospects, and your ability to attract other high-value customers.

In this article, we’ll take a look at ways you can remove common obstacles many businesses face as they pursue their first enterprise client.

1. To Win an Enterprise Client…Know Their Business

First thing’s first. You must understand your prospect’s business or your pitch has no chance of success. And I’m not talking about just being familiar with their history, their marketing material, and their roadmap.

If you want to show how you’re going to be valuable to an enterprise, you need to have remarkable insight into their operations and strategy. You need to know the objectives that drive them. You need to demonstrate that you understand the mechanisms required to get them there.

Fortunately, publicly traded companies always have highly detailed information available via their investor relations (IR) departments.

Another approach would be to Google the company’s name and look at their News results. Big business makes big news, so there’s likely going to be a wealth of up-to-date information on your prospect.

2. Understand and Articulate How You Can Add Value

Once talks with your prospect start picking up momentum and you get face time with decision-makers, the conversation should not be about you and what your company offers. This is not the time to go through a rehearsed sales pitch where you quote figures and cite case studies.

Yes, there’s a time for this spiel, but once you’re sitting in front of someone working in procurement, that time has gone.

The deeper you get into discussions, the more you need to steer the topic of the conversation toward the specifics of how your product or service will benefit them. At this point, they don’t care that you reduced administrative overhead costs by 15% for one of your other clients.

What they want to know, whether they’ll say this to you or not, is: 

• How can you make our lives easier?
• What will you do to you make us more profitable?
• How will you protect us from the risks that are unique to our industry?

In short, you have to speak their company’s language. To do this, you need to have insight into their world. You’ll also need remarkable knowledge of your product’s capacity to make it better.

Practice these conversations. Meet with your colleagues and other industry specialists. Be ready to preempt every single question they may throw at you. Have smart, insightful, non-generic answers prepared for them.

3. Fine-Tune Your Company Image

Involve a branding specialist to ensure that your company’s public-facing presence is up to standard. This process typically involves a thorough audit of everything “out there” that could shape the public’s perception of your company and its reputation.

There’s a lot to this. There are websites, social media accounts, news mentions, press releases, the tone and content of your blog, even the online profiles of your management team.

In some cases, it might be worth the effort to start positioning your CEO as a thought-leader in your industry. 

Yes, this could take a while. However, the positive reputational impact of speaking at a conference or taking part in a round-table discussion with other experts can be huge.

Even simply building a solid, thought-provoking presence on Twitter will sometimes be enough to make your prospects take your brand a little more seriously. Make no mistake, your company’s leadership will be Googled.

4. Be Prepared for Serious Scrutiny from an Enterprise Client

Large organizations are extremely cautious when integrating their systems with an external party. Corporate governance often dictates that an absurd amount of auditing has to happen before a deal with a vendor is finalized.

This is most keenly visible in the digital security arena. If your company offers a solution that needs to be integrated with your prospect’s technical environment, be prepared to be placed under a very powerful, very intimidating microscope. Onboarding a new technology vendor is a lengthy process that typically kicks off with something called an Enterprise Security Questionnaire.

Don’t be fooled by the term. This is no one-pager with Yes/No answers. Your commitment to cybersecurity will face a level of scrutiny you may not be ready for.

Experts in cybersecurity cite this as the number one reason new customers contact them. Any potential enterprise client will assess your technical environment and, often, a small business is simply not ready for this.

It’s often a good idea to involve a consultant even before the questionnaire hits your CTO’s desk. As negotiations start heading into the closing phases, be proactive. Hop on the phone with a company that knows the questions enterprise clients are going to ask.

5. Understand the Impact a Long Sales Cycle Will Have

This is a biggie. Be prepared for many of your resources to be tied up in negotiations that can go on longer than expected. Much, much longer.

A long sales cycle will affect every company differently. It’s not always possible to preempt how this will impact other areas of your operations. The best approach is to stay aware of the risk and to never base any predictions on having the deal finalized by a specific date.

Also, tread carefully if your company somehow becomes dependent on closing the deal with an enterprise prospect. It’s understandable that this could happen. If it does, do whatever you can to avoid letting your prospect finding out. Desperation is not a good look in the business world. What this scenario says about your company’s ability to plan (amongst other things) isn’t great.

Signing Your First Enterprise-Level Client Will Require Patience

The sales cycle for landing a big fish is lengthy. Things move slowly at big corporations for a variety of reasons that can be both understandable and infuriating.

The truth is that large organizations are immensely risk-averse. They take new partnerships incredibly seriously as accountability is a big deal for them. As a result, the tactics we talk about in this article represent a lot of effort on your part. Get comfortable with this.

To create the optics you need to be taken seriously could take months, if not a year. You might have to make some challenging internal changes to align your operations with your prospect’s regulatory needs.

This is the price smaller businesses have to pay as they start wading toward the deep end of the corporate swimming pool. Know what the sacrifices are and be prepared to make them.

Fortunately, the benefits of succeeding in your pursuit of an enterprise client are immense. There’s no doubt about that.

The post How to Win an Enterprise Client to Transform Your Small Business appeared first on SmallBizTechnology.

Retirement Planning Tips

Take your first steps into retirement planning with these six tips.

1. Figure out how much money you’ll need.

That’s your first step. Figure out how much money you’ll need annually as well as for the rest of your life to live a comfortable retirement. This amount will vary from person to person depending on the lifestyle preferred in retirement.

To figure out how much you’ll need in retirement, here are a few lifestyle questions to guide you:

• Where do you want to live? What’s the cost of living there?
• What will be your sources of retirement income?
• What age do you want to retire, and how much do you need to save each month to reach your goal?
• Have you taken into consideration the increased cost of living as you age and the added healthcare expense?

2. Diversify your investments.

Once you figure out how much you’ll need to live comfortably in retirement, you need to figure out a way to get there. The best way to do that is by seeking a diversified retirement plan. You have five major retirement investment options to choose from, and the best option should depend on the size or nature of your small business.

• Solo 401(k): The solo 401(k), a one-participant 401(k), is a strong option for independent contractors and sole proprietors. This retirement plan allows you to make contributions to your retirement account as an employer as well as an employee.
• SEP IRA: SEP IRA plans allow you to accumulate a lot more money than traditional IRAs. The amount of money you can invest in a SEP is based on your earnings. With a SEP, you can contribute up to 25% of your earnings or $57,000 – whichever is less.
• Roth IRA: In a Roth IRA, the investments grow tax-free, and the withdrawals during retirement are also tax-free. However, you pay taxes when you invest money into the account. Your contributions are not tax-deductible.
• SIMPLE IRA: A Savings Incentive Match Plan for Employees (SIMPLE) IRA allows both employees and employers to contribute to a traditional IRA. If you are a business with 100 employees or less, you can set up a SIMPLE IRA. You also qualify for a SIMPLE IRA if your business is a sole proprietorship and you are both the employer and the employee.
• Traditional 401(k) : With a traditional 401(k), you can make employee deferrals, and anyone of age 50 and above can make catch-up contributions. But before you decide to go this route, be sure that your employees understand the benefits of a 401(k), and they are willing to contribute.

3. Don’t sell your business for a retirement strategy.

Most small business owners think that by selling their business, they can set a foundation for their retirement plan. This sounds great in theory, but it can get complicated if the business is family-owned and -operated. Moreover, you may not get the value you are hoping for.

4. Have an exit strategy in place.

It’s important to decide what will happen to your business when you retire.

Will you sell the company? Or will you pass it on to your family? Or will you rather an employee take over the company and buy out your interests?

Do you have an escape plan chalked out in case you are forced to retire sooner than expected due to health issues?
Figuring out your exit strategy can help you in making the right business decisions today.

5. Always approach tax planning strategically.

As a small business owner, you have to consider reducing your personal and business tax liability. Depending on the situation, you may need to make certain strategic business decisions to lower your tax liability. Therefore, it’s a wise decision to work with a financial planner and be proactive about reducing tax after you retire.

6. Hire professional help.

Retirement planning is more complex than it appears. To make smart investments, it is recommended to hire a certified financial planner and a third-party administrator. Qualified and experienced professionals can construct a retirement strategy based on your unique situation and goals.

The post 6 Retirement Planning Tips for Small Business Owners appeared first on SmallBizTechnology.

An entrepreneur has to monitor the daily cash flow to make sure the business is not losing money through mismanagement or theft. They have to invest in marketing campaigns so that they can engage prospective clients. They also have to invest in employee training to improve the customer experience and boost brand loyalty. The business owner must also settle electricity bills and other office expenses. In general, a lot goes into managing a business and making it profitable. Advisors Alliance Singapore aim to the educate and bring awareness regarding financial literacy.

So, what happens after you make your first profit? You have three options:

• Invest the money
• Reinvest the profits
• Repay outstanding debts

The financial needs of your business and market conditions will determine your investment strategy. You can decide to assign distinct portions of the profit to all three options.

Repay Outstanding Debts

Repaying your debts on time improves your credit score and provides your business with a lifeline. Once you clear your loans, you can borrow again anytime you have a cash flow crisis. So, how do you decide the portion of the profit that will go to repaying debts?

First, consider the loan amount. If you can afford to repay the loan and still have some cash leftover, do it because the longer you stay with debt, the more expensive it becomes. Next, consider the loan maturity. If it’s a long-term loan with flexible payments, use a modest portion of the profits to repay the debt. Third, consider the interest rate on the loan and rate of return on investments. If the return on investments will be higher, that’s where most of the money should go.

Reinvest the Profits

When you reinvest the profits, you’re putting money back into the business to grow it. The portion that you’ll reinvest will depend on past performance. For example, if re-investing in the marketing department has always led to a satisfactory return and better performance, you can re-invest a similar or slightly larger amount this year.

Invest the Money

You can use the profits for other investments. You can diversify your company’s stock portfolio. Is there a new sector that’s emerging? The interest in artificial intelligence and machine learning has been growing. It means that stocks related to these two sectors have the potential to increase in value in the upcoming years. Therefore, you can invest in these stocks to boost your portfolio.

You can also invest in cryptocurrency. Cryptocurrency exchanges like OKEx allow you to buy and sell Bitcoin, as well as all other major cryptocurrencies, directly through their platform. Just like the stock market, the idea is to buy cryptocurrencies at a low price and then sell them later at a profit.

To conclude, combining the three strategies mentioned above will help you multiply your business earnings. The portions assigned to each strategy will depend on your future cash needs. For example, if you anticipate a surge in orders over the next year, your priority should be increasing capacity and personnel. As a result, you’ll reinvest a large chunk of the profit back into the business.

The post Strategies for Investing Your Business’ Profits appeared first on SmallBizTechnology.

Below are several types of technology that will make handling finances less arduous and more intuitive.

1. Accounting software

You could try to keep your operational books the old-fashioned way with pen and paper. Or, you could generate spreadsheets in Microsoft Office or Google. However, accounting software will take you to the next level.

Some of the more popular accounting software packages include QuickBooks and Wave Financial. QuickBooks is undoubtedly one of the most well-known bookkeeping choices, having been around since the early 2000s. However, Wave has a singular advantage if you’re just launching with a tight budget: Its basic format is robust and free to use.

Of course, you’ll want to make sure that any accounting software you choose allows you to not only track your expenses and income, but analyze your spending, too. Plus, the platform should be easy to understand, effortless to use, and offer accessibility from any device. If you’re planning to scale your operations in a big way, make sure your software programming can grow with your needs.

2. Online retirement tools

Want to offer your employees a small business 401(k) or other types of retirement vehicles? It’s a good idea because many talented workers seek out employers that provide help amassing retirement nest eggs. However, handling all the ins and outs of a 401(k) plan can be a time-consuming bear.

The workaround, of course, is to partner with a retirement solutions provider that offers cloud-based tools and a customer-centric fee structure. That way, your team members can contribute to their 401(k) plans, make adjustments without contacting you, and feel more self-sufficient.

In the meantime, you’ll know that you’re assisting your people in saving money for the future. But you won’t have to spend a ton of time on the administrative end. Be sure to explore several retirement platforms before deciding on the one that makes the most sense for you and your staffers.

3. Invoicing software

Have you ever forgotten to send an invoice in a timely fashion? The individual or business receiving the invoice probably won’t mind, but your delays could hurt cash flow. To reduce the chances of invoicing hiccups, look into the best invoicing software tech on the market.

What should you demand out of invoicing software? First, you’ll want to be able to set up an invoice template that can be individualized as needed. Next, make sure that your invoicing program tacks on late fees automatically so you don’t constantly have to go in and make changes after 30, 60, or 90+ days of delinquency.

Some invoicing software can even enable you to accept payments through a secured, encrypted portal. That’s a nice add-on feature because it allows you to skip the manual step of transferring credit card numbers or financial institute routing information. Finally, it’s great to be able to create a weekly, monthly, quarterly, or annual snapshot of how your invoices are shaping up and whether you have a lot of overdue or missed payments.

4. Virtual tax solutions

Just because you rely on a brick-and-mortar accounting group to handle your taxes doesn’t mean you can’t use some tax tech solutions. For instance, you might want to organize your tax documents in a single portal. This allows you to efficiently deliver all your necessary documents to your tax preparer on time and in a streamlined fashion.

Remember that some online tax providers encourage you to use your mobile devices to take and upload images of receipts and input other useful tax-related items like mileage logs. Again, you don’t have to worry about investing in a tax solution that will do it all. You just need one that makes it straightforward to get your taxes done accurately and on time.

If at all possible, try to find a tax solution that will at least help you aggregate the records you need for federal and state filings. You’ll still have to do local filings on your own, but those will be less complicated when you have your federal and state paperwork in order.

5. Online banking portals

Choosing a lender for a small business loan is a big decision, but the impact goes far beyond just how much you’ll spend in interest over the lifetime of the loan. Pay attention to the way the financial institution’s online portal is set up.

For example, is your banking information accessible at a moment’s notice? Does the site offer intuitive navigation, giving you all the answers you need at your fingertips? Can you apply for other loans or make inquiries through the site without having to go to a branch or make a phone call? Even companies that provide fuel cards to businesses now provide easy-to-manage platforms for budget control.

Every lender has its own attributes when it comes to offering technical help and services. The last thing you want is to take out a loan and then have trouble following how much you’ve paid, how much is still owed, and what your payout options could be.

6. Inventory management tools

Many businesses need to keep a certain amount of inventory in stock. Yet it’s important not to have too much or too little at any time. That’s where inventory management tracking tools come in handy.

With the right inventory management software, you’ll always know what’s in your warehouse or storage facility. At the same time, you can begin to plan on when you’ll need to reorder supplies. Over time, AI-driven inventory management tools can learn when to nudge you about stocking up or warn you that certain items with a limited shelf life are about to expire.

There’s a world of tech available to make handling all the financial aspects of your business as effortless as possible. Avail yourself of legacy and emerging solutions and services. You’ll sleep better at night knowing that your fiscal needs are covered.

The post 6 Types of Tech to Make Your Business Finances Easier appeared first on SmallBizTechnology.

1. Strong Human Resources Management Team

The core of a successful business plan is the people that you surround yourself with. You cannot expect to have success without a high-quality staff. And you cannot expect to work with the best people without a competent human resources management team. As a team you should choose a good program like VoIP for Business for business strategies and communication.

As part of your human resources team, you need to have a professional who is trained to find and hire the best talent to keep your business moving forward. This person will be the face of your company as you bring new people into the fold. A good human resources manager will also be able to effectively craft your company culture so that you retain quality employees. Increasing employee satisfaction will go a long way in supporting success for your organization,
making it important that you have human resources staff in place to make this happen. you can focus on scaling and growing your business by the help of singapore nominee director.

2. Cash Management System

You are only as strong as your cash management. Most businesses that go bankrupt do so simply because they run out of cash and not because they are not equipped to be profitable. There are a number of factors that you need to consider when designing and implementing your cash flow system. How much cash do you need to have on hand? How do you collect payments from clients? How much inventory do you need on hand to operate with a comfortable margin?

How much capital do you need at your disposal in order to grow your business and how will you balance this with your debt? All of these questions need to have an answer if you want to avoid having cash flow issues.

3. Marketing Plan Focused on ROI

Marketing is a critical piece of any business plan. When crafting your general marketing or franchise marketing and promotional initiatives, it is important that you devise a plan that is focused on your return on investment. The last thing that you want to be doing is dumping your money into initiatives that do not pay off for your bottom line. One of the best places to start your analysis of your marketing ROI is through your own company website. Through your site, you can use Google Analytics to learn how people find your business, where they come from, and how much they are willing to engage with what you have to offer. From here, you can craft your marketing plan to reach the right audience while responding to their specific needs.

4. Solid IT Infrastructure

In today’s modern business world, it is imperative that you leverage technology to your full advantage. This means that you cannot slack on putting all of your IT infrastructure in place. Without a solid IT foundation, your business will not be able to keep pace with the competition in a fluid marketplace.

If you do not have the ability and staff to run your technology systems in-house, you can look into contracting out for managed IT services. This will take a significant amount of work and worry off of your plate so that you can focus on the meat of your business. With a managed service, you can take advantage of a staffed IT desk and proactive monitoring of all of your most vital technological systems.

5. Business Plan

The cornerstone of your success lies with your business plan. This formal document serves as a guide as you make tough decisions about your organization. You can customize your plan to meet your specific business needs. Most plans include an executive summary, a list of high-level staffing positions, financial data, marketing initiatives, and more. Not only will this serve as a reminder to you, but it is also a useful piece of information for potential investors.

These five elements will combine to ensure that your business is put in the position to succeed both in the short-term and in the long-term. With all five of these essentials, you will be able to weather a variety of issues and come out on top.

The post 5 Business Essentials That Every Business Owner Needs appeared first on SmallBizTechnology.

1. More effective reporting processes

Typically, reporting on financial information is a tedious task requiring long hours of consolidating  multiple spreadsheets and connecting the dots between profitability and efficiency. However, there are now smarter, digital options for this task when you use smart reporting technologies that enable automated schedules, real-time data, and artificial intelligence features. 

By removing the manual approach and accelerating processes across the board, financial managers have the opportunity to diminish human-based errors as well as improve the speed in which financial data is processed. Software that has the ability to keep massive volumes of financial records creates a business environment that improves the decision-making processes. Financial managers and financial consultants go hand-in-hand in providing a more effective operational management. The professionals at Virtualauditor has the best company valuation consultants and can help you and your team achieve better financial performance.

2. Accessing data on-the-go

Working on mobile has slowly become a standard way of working, even in the financial industry with the introduction of mobile banking and online transactions. Some countries such as Sweden, China, and the UK are leading the pack in trying to eliminate cash payments. In fact, Sweden’s transactions consist of cash in an astonishing figure of only 2%. More and more the financial industry is moving things online, so stay ahead of the curve by investing in technology that will help you digitize as well. 

3. Competing with giants within your industry

Making the right decision at the right time is critical in our cutthroat digital age and the financial sector is no exception. No matter the size of a company, each and every business has the chance to choose software that will help in making better informed and more accurate decisions. In this case, even if your budget or resources are not high, there are solutions on the market that you can benefit from. It’s important to use smart technologies, both in small businesses and large enterprises, since it will ensure that financial information is stored, delivered, and accessed from a centralized place.

4. Implementing AI for increased productivity

Artificial intelligence has found its application in the financial sector and it’s becoming increasingly important for small businesses. Popular applications include chatbots that automate sales processes or customer service inquiries, and enable financial institutions to communicate more effectively across the board, leaving the more human-centric tasks to humans. Moreover, AI has found its applications in back-office processes, predicting future financial values based on past and current data as well as impacting risk management and marketing. The popularity of AI is not only present in big banking institutions but also in small credit unions and businesses across the world. 

5. Using predictive analytics for financial analysis

Being closely connected with artificial intelligence, predictive analytics has emerged into a field that the financial sector is starting to use more often than ever before. Predicting revenue, upscaling the supply chain, analyzing loss drivers, creating financial reports, or detecting fraud are just some of the examples where predictive analytics help financial professionals in their line of work. The potential is there, but there is some caution when it comes to utilization of predictive analytics such as privacy missteps so do think through the pros and cons before implementing anything. 

Intelligent technologies have become a necessity in industries across the world, and financial departments are no exception. The development and implementation of such technologies are no longer limited to large enterprises; small businesses have the possibilities to start small and scale as the business grows. It’s important to implement emerging technologies throughout the company as a core feature of smart business management and sustainable development.  

The post 5 Benefits of Using Smart Technologies in Financial Operations appeared first on SmallBizTechnology.

In this article, we’ll talk about the two main types of funding options available: debt financing and equity financing. We’ll look at how both of these financing options work, cover the pros and cons of each, and discuss how you can make an informed decision for your small business, just make sure that you have a professional accountant to keep track of all of your finances.

The Basics of Debt Financing and Equity Financing

There are two primary types of financing available to small businesses: debt financing and equity financing. While they will both provide an influx of capital to your business, they are also very different from each other. 

What is debt financing and how does it work?

Debt financing is when a business borrows a fixed amount of money from a lender with an agreement to pay back the principal sum, with interest, in a specified amount of time. Small business bank loans, credit cards, and credit lines are the most common types of debt financing. However, money can come from a variety of sources. In addition to banks and credit unions, debt financing can also come from non-profit groups and even friends and family. Sometimes a lender will require collateral to secure the business loan. This could include anything of value including business assets such as accounts receivables, buildings, vehicles, or inventory. If the loan were to default and the borrower could not pay off the debt, the lender would then have the option of selling these assets to pay off the loan.

What is equity financing and how does it work?

Equity financing is funding that comes from small business investors that buy equity investment into your company, typically in return for a percentage of profits. Small business investors can be private equity firms or, just as with debt financing, they can also be friends and family. Sometimes, but not always, a small business investor may be granted some amount of control in the business. This will depend on the terms of the deal. Most small business investors will structure a profit-sharing arrangement that anticipates seeing a predictable return on their investment.

The Pros and Cons of Debt and Equity Financing 

Advantages of Debt Financing

With debt financing, once you have repaid your debt, you have no obligations and you are done with the relationship. Because you are not selling a stake in your company, there is never any change to the business ownership. Other advantages of debt financing include having a variety of lending options to choose from and the fact that any interest you pay on the loan is tax deductible.

Disadvantages of Debt Financing

Debt financing may require collateral to secure a loan and terms will require that you pay back a specified amount of money no matter how well your company is doing. If you borrow money from a lender and your business doesn’t perform well, they probably only care about their bottom line. This can lead to serious cash flow issues, defaulting on loan payments, and risking the loss of any assets you provided as collateral for the loan. Additionally, while lenders may not have any say in how your business is run, they do have the option of imposing restrictions that can dictate how the money you borrow is used.  

Advantages of Equity Financing

One of the main advantages of equity financing through small business investors is that they will not charge you interest on their investment into your company. This means you’ll have more money available to invest back into the success of your business. Another big advantage is that equity investors often provide a great degree of experience and business leadership. With equity financing, small business investors only see a return on their investment if your business is a success. Small business investors also have a much greater incentive to ensure that your business succeeds and can often provide expert guidance to help your business thrive. At the first sign of trouble, their first inclination will be to help you in any way they can. After all, they have a stake in the success of your business. In contrast, if a bank sees that you’re in trouble, their main concern will be making sure they still get their monthly loan payments.

Disadvantages of Equity Financing

Handing over even a little bit of decision-making power is not for every business owner. No matter what type of expertise a small business investor has to offer, some owners do not want to involve a third-party in the operations and management of their business. Additionally, while equity financing does not require the repayment of a principal sum with interest, you will typically create an agreement to share a certain percentage of your profits with small business investors that you have partnered with.

Conclusion

If your business needs an injection of extra capital, your best course of action is to do your homework about loans available and pertinent small business investors. You’ll be better equipped to make a decision by committing these basics of debt and equity financing to knowledge, and by carefully weighing out the various pros and cons with your business needs and goals. Whichever one you choose, be sure it offers the right balance between risk and reward. In the end, the most important part of any business decision about raising capital is having a solid plan on how you will effectively leverage it.   

The post SMB Financing Options: Small Business Investors vs. Loans appeared first on SmallBizTechnology.

Understanding Cash Flow

There are several areas to your company’s financials, and you need to be aware of what each item represents to know if your operations and financial management are on track. Turning a profit isn’t the same thing as your cash flow. Profits are the monies you receive above the overhead costs associated with the production, sales, delivery, etc. Your cash flow is the amount of money you have in the bank at the start of the month and the money going out each month. In other words, its the flow of cash in and out of your business at any given time. If you are taking care of your payables before you have your receivables, you can get into a cash flow problem. The books say that you have made the money to pay for your debts, but the invoices on those sales are outstanding and may not be paid before the bills are due. A cash crunch can affect things like payroll obligation, paying your health or business insurance premiums, covering your vendor accounts, or utilities. Looking into a netsuite solution provider can help you with automating your books for better efficiency.

Keeping a Reserve

There are several strategies you can implement to improve your cash flow, but you should always be prepared with an emergency fund. Whether you have gone to a traditional lender for a cash influx or you pitched your business idea and practices to a venture capitalist like Mark Stevens, it is sound business practices to keep at least three to six months operating costs in the bank for emergencies. However, you don’t want to dip into this if you have long-term cash flow problems. This is where the following strategies come into play.

1. Improve Billing Practices

If your customers consistently pay past the thirty-day mark, think about offering a small discount if they are able to pay their bills before the due date. Not only does this create an incentive that energizes your customers and creates loyalty, but you also get your cash back in the bank. This is an easy way to boost your cash flow. Always send out invoices as soon as the purchase is made. This encourages more timely payments.

2. Lease Equipment

While many people feel that that leasing equipment is a more expensive option when it comes to the bottom line of your finances, the short-term benefits of saving your cash flow can be pretty convincing for leasing. Not only do you have to pay less upfront for the equipment or supplies, but you may also save on things like repair or upgrades since many vendors include those costs in the lease agreement. You are also able to count lease payments as a business expense, which can help you out around tax time.

3. Form a Co-op

If you know several other small business owners, consider banding together to form a buyer’s coop. When you pool your money and buy things in bulk, suppliers are more willing to haggle or negotiate better rates.

4. Check Your Customers

Even though you are desperate to make a sale, don’t sign on the dotted line if a customer is unable to pay in cash and you haven’t done a credit check. When a customer has poor credit, you assume a serious risk in letting go of your inventory. Your cash flow will take a hit if the customer defaults on the payments, buy isotretinoin in mexico but you also spend additional funds trying to collect on the past due amount. You can offset some of the costs by assessing a higher interest rate for customers with questionable credit.

5. Assess the Inventory

Your warehouse might be well-stocked, but if your products aren’t moving out the door, you have money sitting around on shelves. You would be better off to have a discount sale and see some return on the investment you made than to not make any money. You need to be objective with your inventory and let go of what is holding you back.

6. Pay Online

Rather than having to mail in your checks and waiting for them to clear, take advantage of online bill payment systems or automated billing centers. Pay the bills on the due date electronically, as you are giving yourself extra time waiting for cash to come in. You can also check on the grace period of credit cards, helping boost the cash flow if you hold out on your payment for an extra week.

Without strong cash flow, your business can’t survive. It doesn’t matter how profitable you might seem to be. Track your finances each week to stay on top of the data.

The post 6 Tips for a Healthy Cash Flow appeared first on SmallBizTechnology.

If you’re interested in getting into the property management business, there are a few things you need to know.

The following are essential tips for the next great property management business. 

Research the Market

Like with any business, market research is critical before getting into property management. As expressed by the real estate adage “Location location location”, the ins and outs of successful property management vary from one place to another. Climate, infrastructure, economy, and demographics are just some of the factors that play a significant role in how the business of property management will play out in a certain location. Once you have your business’ property picked out, then get the proper commercial parking lot paving and parking lot striping services to make sure you have a space where your employees can park their car that isn’t out on the street.

It’s important to assess the local real estate market to uncover these nuances. A four-plex in Denver may need a plowing contract during the winter whereas an office building in Tucson is going to need an air conditioning company on call at any time. The point is, know your terrain and market because the day-to-day of each market and type of property will vary drastically. Whenever you deal with properties you must be sure to have the right property insurance to always be covered in the case of an emergency. When starting out you must have a few properties available for use, if you don’t have many then start looking at metroplaces.com.

Take Time Management Seriously

Effective property management means recognizing ways to streamline the responsibilities and processes that come with the job. The most important property management skills tend to involve time management in some way or another. Whether it’s making the most of meetings, communicating better with tenants and vendors, or properly delegating tasks to others, knowing how to make the best use of time is critical for success. Once more than a few contracts are under your care you will need to hire and scale, how do you manage your time that is used to manage those people? That’s a common problem which is why documentation and process creation are so important. 

Zero In on Property Type

Do you want to manage residential properties, office space, or industrial facilities? While it’s not unheard of for property management services to oversee different types of property, newcomers are probably not prepared to take on a diverse spread of real estate. Instead, pick one and start there. As your business grows and you gain more experience, branching out to multiple types of properties becomes easier and more practical. Often, someone gets into this industry because they buy something themselves and learn to manage their own assets before taking on others. Would you rather own an apartment building or a trade home.

Build Strong Relationships with Great Contractors

Property management means overseeing the maintenance of buildings and the land they sit on, like these professional commercial refrigeration services. While it’s possible you’re able to handle a few problems yourself, chances are the majority of the tasks required are outside your wheelhouse. These will need to be delegated to outside experts. Landscapers, plumbers and painter decorator, it’s important for property managers to build strong relationships with these and other contractors they choose to hire, like these commercial hvac repair and ac installation services. 

This is especially true when they’ve found ones who do the job right at a fair price, like AirNow Cooling & Heating lets you be completely sure that their price range will leave you satisfied after you have seen their results. Pay them on time, pay them what they’re owed, and don’t lose their contact information. In return, the reliable work they get through your property management business will keep them coming back and most importantly, knocking out projects quickly general contractors will need to be hired when necessary.

Be Ready for Odd Hours

As previously mentioned, time management skills are crucial for successful property management. With that said, it’s important to know property management might not always be a nine-to-five Monday through Friday type of job. Emergency issues with plumbing or other problems can pop up at any point and require immediate attention, so you have to be ready with the contact of a company that you can call and ask for help like the plumber Austin company.

It’s imperative for property managers to be prepared to work at odd hours. While it might not mean much more than showing up to let the repairman into the basement, you don’t want to be inaccessible when your presence is needed in an emergency.

Given the volume of real estate out there, property management is a potentially lucrative business opportunity. But it’s important to understand the business before diving in headfirst. Those who appreciate the primary responsibilities and skills of property management will prove to be the most successful.

The post Tips for Starting a Property Management Business appeared first on SmallBizTechnology.

What does it take to succeed in real estate? A wide range of things, but you’ll get off to a good start if you learn how to avoid foreseeable errors, build a creative team to develop the business, and calculate your carrying costs to avoid running out of cash to cover business expenses.

Let’s take a closer look at the core aspects of launching a successful real estate business:

Create a Business Plan

While your plans won’t always work out, having a goal and a plan will give you a sense of direction. A solid plan will also boost your confidence. Ideally, create a formal business plan, one so meticulously conceived that you could take it to the bank to get financing if you need a loan.

This is also a good time to talk about your business model. Do you want to be a traditional buyer’s agent or seller’s agent? Do you want to lead a branded team of other agents who cut you in on a percentage of their sales? Would you rather start a brokerage, or potentially go into virtual wholesaling as an investor? (Here’s an excellent article on how to wholesale real estate.) The answer to those questions will help determine everything else.

It is at this point that you need to decide what you will be delegating to others, and what you will be taking care of yourself. Perhaps you will want to oversee and micromanage every aspect at first, but you may soon find you don’t have time for it all. There will be plenty of aspects of your business you will be able to hire others to handle for you. You could consider hiring a property management solutions company for example. They will be able to take care of collecting rent and looking after any rental properties you assign to them. This will free up time so you can take care of the big things. The kind of things only you can do, and that will keep the business afloat. Many services like this exist, and you can hire the correct personnel as well, so keep that in mind.

In addition to office rent, furniture, and overhead expenses, you should itemize all the marketing resources you must invest in to grow your real estate business. This not only demonstrates an eye for detail, it provides a more comprehensive roadmap going forward. B2B services will help you guide your small business to success. For example, it may be wise to use a legal services instead of hiring a full time lawyer. Another common B2B service a new company may need is with finances. A more creative and differentiating service could be professional drone photography  while marketing and advertising properties. You don’t only need to use services to run the boring parts of your business like payroll and litigation, but you can also spend some of that money on creative marketing tests to try and stand out while building your brand, but that doesn’t mean you won’t have to manage them in the future, you should always have commercial litigation lawyers nearby so you are ready to contact one if you ever need their assistance.  

You can always get guidance on how to create your business plan from a Small Business Development Center associated with the U.S. Small Business Administration. Also, rather than using a word processor to outline your business plan, it might be easier to use a software template to structure your ideas in a more coherent and cohesive manner.

Assemble a Creative Crew

When it comes to building a real estate business, you don’t have to do it alone. Consider partnering with other progressive thinkers. Building a creative team will not only fortify your courage when you need to step out of your comfort zone to get a new client or close a deal, but it will also stimulate strategic ideas on how to grow your business. Imagine how much faster your business will grow if you can outsmart the competition, come up with clever ideas when you get stuck on a project, and consistently maintain a positive attitude.

Understand Your Customers

You learned about your customers’ proclivities before you created your business plan because you needed to figure out if your product would sell and if you had chosen a profitable business niche. While you won’t need to do the same level of extensive research again, continuing to understand your customer’s interests pays off in spades. Make an effort to keep on learning more about your target market’s needs and wants. This effort will prove invaluable when you’re advertising and promoting your business. You’ll also be able to close more sales because you’ll have an intuitive feel for what people need, want, and desire. You are also going to need to a place where your customers can find you to set up a face to face meeting to make it easier for them. If you want to find a place fast, then visit the Swiftlease Homepage for many options. Once you have everything settled and are ready to start renting, then make sure that you do a proper tenant screening so you are sure of who is renting your property.

Calculate Your Carrying Cost

While you could start your company for less than $5,000, this will only cover your carrying costs. Don’t naively assume that if you hustle every single business day that you’ll always have more than enough cash flow to cover all your business expenses. Despite your best efforts, there will be some downtime. Estimate your carrying costs, then work with investors to fund your business. If you have ever wanted to start working for yourself, you may want to look into a mattress store business opportunity. A mattress store can be setup with fairly low up front costs. You should also save your initial profits to build a financial cushion.

In closing, you have to remember that real estate is not a get-rich-quick business. While you might hit a financial windfall now and then, don’t expect to always go from one large commission to another. Instead, think of real estate as a long game and build your business with patience and integrity.

The post How to Launch Your Own Real Estate Business appeared first on SmallBizTechnology.

However, there are alternatives. Types of Loans You Can Get with Bad Credit: Although there are more borrowing options for people with bad or no credit, two main options to consider are personal loans and payday loans. Personal Loans – Many online lenders offer unsecured personal loans for people with a bad credit score. These loans are easy to take out and require a soft credit check that doesn’t affect your credit score.

Look over these common reasons to take out a loan for your business. A bit of insight can help you determine whether or not this is the right fit for your goals.

Time To Grow

After your business has been in operation for a few years, you may wish to expand. Growth can be an excellent way to take your company to the next level. To see success, you can’t just rush into things. Careful planning involves assessing your finances and making projections on how much it will cost to boost your company’s reach. Not only do you need to cover your operational costs, but you also need extra funds for expansion efforts. In a majority of cases, business owners look toward financing options in order to cover the expenses related to growth.

There are many ways to grow your business including digital marketing, since marketing is really useful now a days, in this modern age the internet marketing revolutionized the world, and the online marketing ease the marketing needs and many online marketing tool, e.g Ahres, Buzsumo, MailChimp, sentence rewriter by SEOToolsCentre and Semrush are some most popular handy tools to over come your work. So whether you are purchasing real estate to open a second location or need to hire additional employees to meet new demands, you need money to make your goals into a reality. A loan can provide you with the temporary funding you need to help your business see success as it moves to the next phase of its existence.

Equipment

Growing your business is one way a loan can help, but you don’t always need to be involved in a larger project to benefit from financing. In many cases, some extra cash can help you improve your current operations. Your company most likely relies on a few key pieces of equipment in order to operate. If it has been a few years since you invested in this machinery, then it might be a good time to start looking at making a few upgrades. Since new tech can be expensive, taking out a loan may be a perfect solution.

Exploring your financing options can provide you with the insight you need. In order to upgrade to new equipment that will last you for many years into the future, you require access to cash. A loan with a fast application process can help you understand your eligibility right away and introduce you to a range of helpful financing options. Investing in new equipment is a surefire way to improve the way your business delivers its services to consumers.

Capital Considerations

Business owners need to take time now and again to assess the working capital of their companies. Available capital helps you cover the costs associated with running your business, ranging from payroll to ordering inventory. Unfortunately, there are a number of circumstances that can inhibit cash flow and cause your available capital to vanish. When this happens, you may not be able to cover the vital expenses involved with operating your business. A loan could be the right solution when you need to boost your capital to stay afloat.

There does not need to be a pressing issue for you to think about increasing your capital. Some business owners will explore financing options in order to expand the capital they currently have access to. Increasing your cash flow can help you take on extra projects that may help you improve your capabilities. A loan can help you tackle important repairs needed to make your workspace safer or upgrade to new software to increase company efficiency. As long as you have a plan for paying back the funds, this financing idea can be a helpful way of getting ahead, you can learn more about no credit check loans in our site.

Marketing

In the age of the internet, marketing is everything. A clever campaign implemented over an array of mediums can be a fantastic way to draw consumer attention to your establishment. Of course, these efforts do not come cheap. In order to get your message out to potential customers through social media, email, and traditional advertising methods, you need cash. A loan can provide you with funds that you can use to cover the expenses of future marketing endeavors. Investing money in the right campaigns can yield excellent returns for your company down the line.

In order for your business to stay successful, it can be beneficial to think about how some extra cash might be able to help your situation. Whether you are looking to invest in new equipment, expand your reach, or improve your access to working capital, the right financing may be able to assist you with your goals.

The post Common Reasons To Consider a Loan for Your Small Business appeared first on SmallBizTechnology.

Your overall goal as a modern property manager is to run your business more effectively to be better able to help your clients.  An efficiently run firm is a profitable firm, and a profitable firm stays in business. In order to grow revenues and build a positive reputation, it is imperative that the right people are hired to form a solid and trustworthy team.  Your staff is an extension of you, and when they work well the firm is able to maintain profit margins. While ‘bitcoin’ may be a very commonly heard term, there are few who really know what it is. While it’s a trading system, it’s the foremost different from others for 2 major reasons. For one, it involves a sort of digital currency which will be transferred easily. What makes it more unique, however, is that the incontrovertible fact that it doesn’t involve any banks or other official financial institutions. It’s merely a peer-to-peer system that’s independent and unaccountable. To get bitcoin news, Go through dcforecasts webpage.  Once your Canadian Bitcoin Trading account was created, you can start investing and trading. To start live trading you would only need an initial investment of as little as $250. The minimum deposit serves as your account’s funding. Any money you invest, as well as the money you will make, is yours in full. You can withdraw the funds or reinvest in additional trading activities. The money you invest in your account is your financial resource to start crypto tradings. The bitcoin loophole is an all-in-one cryptocurrency trading platform. It was built with the intention to create a superior automated trading tool for all investors – whether inexpert or seasoned ones. If you are looking for trading then there are many trusted and good regulated forex brokers are available.

Bitcoins are the most recent sort of digital currency getting used by many traders and investors, now everyone wants to learn how to start investing in bitcoin. Any exchange market can trade bitcoins but it is a risky shot, as you’ll lose your hard-earned money. A bitcoin is that the same as currency, though it’s digital in form. you’ll reserve it , invest it and spend it. Crypto-currency once circulated the market and gave rise to the Bitcoin. This started in 2009 by an anonymous person with a nickname of Satoshi Nakamoto. The bitcoin has gained popularity during this year as its rate jumped from $2 to $266. This happened during the months of February and April. A process referred to as mining is claimed to get a Bitcoin using powerful computer algorithms called blocks. Once a block has been decrypted, you earn about 50 Bitcoins. To know more about how to earn more profit from bitcoin, visit www.thebtcprofit.com.

The Team

The most foundational component of a successful firm is hiring the right team members to represent the firm’s interests.  The quality of staff can make or break the entire organization. Property management is an industry that requires team members have a wide range of skills to succeed, but attracting the best talent is no easy task.  People are inherently selfish, and when one individual’s goals don’t align with the ethos of the team, it can have disastrous results.  That’s why when asked, a poll of 100 property managers said that the most difficult challenge in their work was hiring and maintaining high quality staff to comprise their team. 

When revenues are low and profit margins are weak, people have tendencies to cut corners, or look for loopholes for personal enrichment.  Conversely, when revenues are high and profit margins are strong and healthy, team members tend to “coast” or become lackadaisical. Furthermore, in times of plenty, staff can become more tempted to steal from the company.  These are plagues that can ruin any firm.

Aside from theft as a major problem, a property manager must worry about the face their team members show tenants and potential clients.  It is impossible for a manager to surveil every interaction everyday, hence a strong level of trust must be formed between the team and the management.  Staff are typically not as invested in the success of the firm as the management is, and some may even resent the very firm they’re working for. This is a recipe for deception, dishonesty, and ultimately failure.  

The Unforeseeable Future

In addition to staff issues, a property manager is always at peril to face unexpected occurrences.  These can be especially aggravating because they often take place at the most inopportune times. As they say, “it’s not a matter of if something will happen, but when something will happen.”  Because property management is predicated on interactions with people– and interpersonal dynamics are messy and difficult to navigate– there is always potential for things to go awry. A good property manager is constantly preparing for the worst, and taking steps to mitigate the effects of potential problems.  Yet as we all know, things rarely go according to plan.

These can be back-breaking problems for any firm to deal with, and most (if not all) property management firms have experienced these crises in one form or another.  That’s why property management firms with good reputations are so valuable; their mettle has been tested, and they came out of the adversity stronger, and better able to adapt to issues in the future.  A firm with a strong reputation for tenant relations didn’t earn it because they don’t have experience with problem tenants, but because they resolve conflicts and find resolutions that work for everyone.  The importance of a trusted and reputable property management firm cannot be understated.

Image credit: qimono; Pixabay

The post The People Business? The Property Business? There’s Not Much Difference appeared first on SmallBizTechnology.

Get Your Credit In Check

Let’s say you’re hoping to buy in Rancho Santa Fe. Before you start looking at the many Rancho Santa real estate options available, you need to make sure your credit is on point. Most likely, you’ll need to finance at least a portion of your new home and it’s really hard to obtain a mortgage if you have less-than-stellar credit.

This is even more important for people who run home businesses or are self-employed. Since you don’t receive a regular paycheck, the lender may put more emphasis on your credit score when determining your loan eligibility. Also, keep in mind, self-employed individuals or home business owners need to provide several years worth of tax documentation when applying for a loan.

There is an idiom that was probably framed centuries ago, but was it said anticipating a cataclysmic disaster which was to occur way into the 21st century? The phrase ” don’t build castles in air ” was quoted by some one who had no idea of what sub prime loans could do to the entire economical chain of the world. But, it had greater relevance in the early stages of the millennium. Mortgages with bad credit have been instrumental in disrupting the entire eco- chain (economical chain) of the globe. The crisis was an after math of various factors making it a lethal combination.

Buyers mortgaged property without waiting for the prices to slide; which dug a grave exactly to their body dimensions .It requires a lot of patience and wit to do things exactly opposite to your other counterparts. Being greedy when others are reluctant and waiting for the storm to abate instead of pressing the panic button are a few postulates which are imperative for an investor to make profit at a colossal level. However, none followed the right path. Every investor wanted a short cut which led to a ruinous consequences eventually leading to massive mayhem. People forgot the basic essence that a home was a place to live and enjoy rather than a place which would enhance your status of self esteem in the society. The troubling statistics annoy us even more as in the previous recession of the 20th century; the reason for the fall was because of first time buyers who invested when the market was at its peak of ductility. If this was not enough; this time 2 out of ten mortgages were for more than 5 times annual income of the borrower. This is where the predicament started and the doors for hell were opened for the borrower.

The lenders were an equal partner in crime. Initially, Lenders were skeptical in giving a deal for the self employed. However things changed with time and lending mortgages to people with terribly turbulent economic status was considered innovative actions. But all actions have effects and this action had adverse ones. Every business has its shares of ups and downs but the high mortgage levels made sure that the borrower culminated with bad credit history. The problem lies in the method in which borrowers are scrutinized. A source of the capital is a vital criterion in choosing your borrower. Unconventional sources of income must ring the alarm for lenders as the stability of those sources are bound to be tentative.

First, order your credit report and score from all three major credit bureaus — Experian, Equifax, and TransUnion. You should also check your FICO score. It’s similar to a credit score, but the score range is different. You want to make sure both your credit scores and your FICO score are as high as possible because you don’t know which scores the lender is reviewing.

If you don’t have credit or your credit isn’t really that great, you should consider working to improve your credit score before you start the home buying process. This way, when you are approved for a home loan, you get the lowest interest rate possible. This also is beneficial if your business is fairly new because it gives you more time to track your monthly and annual income before discussing options with the bank.

Get Pre-Approved for Your Mortgage

One home buying tip that’s often overlooked is obtaining pre-approval for a mortgage. You should apply for mortgage pre-approval before you start looking at homes. When mortgage companies approve buyers, they give you a maximum pre-approval amount. This means if you purchase a house that costs more than your pre-approval amount, you’d need to have the additional cash on hand to cover the difference as well as the money you’ll need for your down payment and closing costs.

If you don’t have a good amount of excess cash available, knowing your maximum loan amount can save you a lot of time. You simply show the pre-approval letter to your real estate agent and he or she will show you houses at or below that cost. That is why when it comes to your various residential roofing needs, from installation, maintenance to repair, you should leave the job to no one else but premier roofers in the area. Gutters come in several different sizes although most people never notice. You may have become accustomed to seeing white and brown gutters on homes but in fact many custom colors are available today. I built a Marine barracks in New York that required all red trims. Louvers, vents, fascias and soffit materials and yes even the gutters and downspouts were a matching red color. As with window units, there are dozens of custom colors to choose from.

Hire a Buyer’s Agent

Did you know there are real estate agents who focus on selling homes and agents who work exclusively with buyers? They are called buyer’s agents, and their entire job is to make sure you’re getting the best possible deal.

It’s important to remember here that the agent listed to sell the house is focused on selling the house. Now, this doesn’t mean you shouldn’t work with him or her. Agents who are selling a home are still professional and knowledgeable. They probably know more about the house than a buyer’s agent would. However, it’s always important to have someone whose interest is focused on your best interests when making a large purchase, especially when you need your home to function as both your house and office, which is why this is one of the most important home buying tips you can follow.

Plan for your Future Personal and Business Needs

It’s easy to make a list of all the amenities you need a home to have currently, but you also need to consider how your lifestyle or business needs will change in the future. For example, if you plan to have children in the future, you might not want to look at one-bedroom condos. Ideally, the home you choose should grow with you and your family. Or you plan to scale your home business to a point where you might want to hire an assistant to work with you. In this case, instead of choosing a home with enough space for an office, you might consider choosing a home that has a finished basement that can be used as individual office space and a co-working space.

Ultimately, the best thing you can do when buying a house is to keep an open mind. Unless you’re building a new home, there’s a good chance, you’ll have to make some compromises. When you go into the process with an open mind, it’s a lot easier to see things in a positive light.

When you buy your first real estate property, you have a lot going on with moving in, perhaps buying some furniture, setting up at&t tv,  hosting your first party at the house and getting used to those mortgage payments. With all that excitement, it’s easy to overlook routine home maintenance, especially when you’ve never had to tackle these tasks before.

To keep things from getting overwhelming, we’ve created this home maintenance guide for first-time owners. And don’t worry – most of these tasks take just a few minutes or a quick call to a trusted pro.

When: Every fall before fire-burning season.

Clean Your Gutters and Roof Valleys

Why: Mucked-up gutters and roof valleys can caused water to back up and potentially enter your home via the foundation, roof or crawl space ? or even freeze inside your gutters and wreck them altogether.

How: Grab a sturdy ladder and take a peek. Use gloved hands or even a trowel to remove debris from gutters before flushing them with a garden hose to make sure there aren’t any hidden clogs.

Remove debris on the roof by hand and check out the flashing while you’re up there to make sure it’s free of rust and holes.

When: Every fall or even twice annually if you live in a wooded area.

Check Wood Decks for Moisture

Why: Wood decks – including redwood and pressure-treated woods – need to be sealed and stained to prevent water damage and rot.

How: A quick splash test will tell you if the last seal is still working. If you fill a glass of water and spill it on your deck, you should see tiny beads of moisture form on the surface – a sign that the sealant is still repelling the water. If that doesn’t happen, then it’s time to reseal your deck.

When: You should do a splash test at the beginning of every summer and expect to reseal your deck every two or three years.

Check and Touch Up Exterior Paint

Why: Besides contributing to curb appeal, paint and stain serve as important protectants, preventing your gutters from rusting and wood siding from rotting.

How: Walk around your home – and get up on a ladder if needed – and look for chipping, peeling, blistering or cracking on every part, including the trim.

Touching things up could just mean sanding, scraping, patching, priming and repainting small areas. But if you see widespread areas of damage, it might be wise to repaint the whole thing.

When: Every summer.

The post 4 Tips for Buying a Home That Will Also Double as Your Office appeared first on SmallBizTechnology.

Buy Used Equipment

It’s understandable if you want the most advanced computers, top-notch furniture, and the best espresso maker that you can find in the market for your office. However, when you are starting out, you need to get your priorities right. There are a slew of things that you can buy from previous owners instead. For instance, quality furniture remains intact even after years of use. Similarly, you can buy used laptops that are just a few years old at ridiculously low prices. This will saves you thousands of dollars in the long run. 

There are plenty of websites like craigslist where you can buy used stuff online. You will be surprised by the kind of variety in products that websites like sell.com and letgo.com offer these days.

Use Cheaper Branding Tools

Regardless the size of your business, you should always take branding into consideration. Branding is important for every business. However, you don’t have to splurge your money when affordable options like tailor brands are readily available at an extremely affordable cost. 

There are also some fantastic freelance branding designers out there who can help create your brand identity. 

Hire Remote Employees

It’s no secret that human resources are one of the biggest expenses that you have to bear. However, you don’t have to hire all the employees on a full-time basis. There are certain roles that can be assigned to remote workers and freelancers at much lower costs. For instance, rather than appointing a full-time assistant, you can find a virtual assistant on websites like freelancer.com or Upwork.com that can help you with tasks like responding to emails, taking calls, updating your calendar, etc. These remote assistants usually cost a lot less than full-time workers.

Since your business is new, it’s possible that you won’t get enough work from your clients in the beginning to keep your staff occupied at all times. So, you can create a small team of freelancers who can work and be paid on a per-project basis. This kind of flexible work-arrangement is win-win for your business and the workers (freelancers) especially when it comes to money. However, finding good freelancers is slightly different than finding full-time professionals. So, it’s a good idea to read a guide or two on hiring a freelancer online.

Use Free Marketing

The web is incredibly vast which means that it’s the perfect place to market your brand. In fact, it’s much better than traditional marketing that includes newspapers, TV ads, etc. as it gives you greater control over your target audience. With tools like social media managers, analytics, etc. you can ensure that your content reaches the right demographic for best results. Hiring cheap seo services is the best option if your starting your business and you don’t want to spend more money.

Not only is digital marketing super powerful, it’s also quite cheap when you do it yourself. You don’t even need to be an expert to put together some basic marketing campaigns as there are online tools and resources to help you. For instance, you can start by setting up professional company pages on appropriate social media channels like Facebook and Twitter. You can also create a blog on which you can publish fresh content on a regular basis to attract organic traffic especially by implementing advanced SEO techniques.  In other words, the opportunities are plenty as long as you are willing to do the work and learn new techniques and trends.

Don’t Let Your Dreams Die Due to Financial Constraints

Here is something that you should remember throughout your journey as an entrepreneur- ideas are powerful, but they are also priceless. You don’t need tons of cash to set up a business that disrupts an industry. If you are just starting with your business you can go to https://www.jdiservices.com.au/ and learn about Business Coaching, Consulting and Sales Training to be more prepared and aware of the best discussions in your company. The Internet is full of valuable information that you can help you achieve all your goals without breaking the bank. So, if you ever run into a roadblock that poses financial challenges, then do some quick research online on the matter. You are likely to find a solution that works for you.

The post Follow These Tips to Cut Costs When Starting a Business appeared first on SmallBizTechnology.

Crowdfunding is impersonal

So you really want a crowdfunding campaign? Join the (literal) crowd. Although it might have made sense even five years ago, starting a campaign in 2019 means getting in a long line. For example, at the time of this writing, Kickstarter, according to its own statistics, has more than 432,000 launched projects. Meanwhile, Indiegogo has launched more than 800,000 campaigns as a combination of not-for-profit causes and startup businesses. What you may not realize is that your budget allows you to have access to the types of technology that will build your small business and streamline your operations. These best practices crowdfunding are a great option to implement into your business. Relying on contributions from a wide swath of the population is a shot in the dark compared with the way bootstrapping has traditionally worked: namely, reaching out and contacting a targeted list of potential partners and customers.

This is obviously a much more personal approach that consequently may result in a more successful financial outcome. Think of the comparison between receiving snail mail (addressed to “Resident”) from an organization soliciting your donations, compared with receiving an actual phone call from someone with whom you have a personal connection, who is asking you to chip into a project whose goals you have in common. With which approach are you more likely to feel a connection and contribute to accordingly?     

Only a fraction of crowdfunded projects get funded

Looking once again at Kickstarter’s own statistics, in concise table form, again as of this writing:

Total projects: 432,000 Funded: 157,000

Amount raised for those 157,000 projects:

Less than $1,000: 20,000 projects

Less than $10,000: 90,000 projects

Less than $20,000: 23,000 projects

More than $100,000: 5,500 projects

Translation? Percentage-wise, nearly two-thirds were not successfully funded, and only about one percent raised more than $100,000. Those are not great odds. Although no one can predict the outcome of bootstrapping, you at least go into it knowing that those whom you have contacted have previously shown an interest in the same goals that are driving your vision. There is thus a higher likelihood of success with the latter approach. And even if those whom you contact are unwilling or unable to contribute directly to building your finances, they may be able to give you new perspectives or advice that allows you to pivot your approach—or even the nature of the goods and services you’re planning to offer—that could lead to a better potential for getting funded.

The cost to get crowdfunded is high

To be successful on Kickstarter, you need a really compelling video and a social media campaign to get people interested. That would cost between $10,000 and $20,000 to create. The same challenges apply for Indiegogo—it is expensive to create a good marketing campaign and your success is based on luck. With both services, you are basically using a shotgun approach and hoping for the best. You are putting all your eggs—up to $20,000 worth—into a promotional campaign in the hopes that it will generate far more than that, even though the odds are stacked against you.

It’s a bit like launching an app for the iPhone and hoping it will be wildly successful—even though there are already two million apps available for someone to download. (I am not even focusing on Patreon, which is more focused on entertainment-based creators, and for which you need a very large fan base to generate significant income.) I think you can only be successful by targeting your potential customers with rifle-like accuracy and putting all your time and money into working with a handful of people who truly need what you are working on developing. This is the substantial advantage that bootstrapping holds over these crowdfunding techniques.

As the head of your new company, you may choose to go any route you wish to raise money—but experience has shown me that bootstrapping is the far superior option compared to crowdfunding in the long run. Best of luck to you and your business goals!

Authored by:

Marty Schultz is Co-founder of ObjectiveEd, whose mission is to maximize educational outcomes for children with disabilities. He is also Founder and President of Blindfold Games, an app development company that builds accessible games for the visually impaired community.

The post 3 Reasons Why Bootstrapping Beats Crowdfunding appeared first on SmallBizTechnology.

#1: Find the perfect accountant

Business expenses, exemptions, taxes, oh my! As you set out into 2019, it’s important to keep your finances top of mind. Finding the right accountant who gets your business is important for your  checking accounts. Look for someone who:

• Understands your business needs,
• Specializes in the small business sector,
• Can provide thorough advice on business growth and profits.

When it comes to the books– cut no corners.  Your accountant should hold all the necessary qualifications and certifications, and above all, be trustworthy. Look for recommendations from your network of colleagues and associates, and find someone who is the total package.

#2: Begin automatic investing

The World Wide Web is full of apps that allow for easy, automatic investing. You simply create an account, connect the app to your bank account, and get the process started. These easy-to-use apps make your money work for you, with just a few touches on your smartphone.

One of the easiest automatic investing platforms is an app called Acorns. Acorns invests “round ups” for you through connected accounts.

Here’s how it works:

As you spend, Acorns will round up your spending to the next dollar. Then, the difference is invested. Say, you spend $5.69 on your morning coffee, Acorns will take 31¢ from your bank account and invest it. That’s a “round up.”

Another popular investing app is Robinhood. Robinhood one gives you the ability to invest in

• stocks,
• options,
• cryptocurrencies, and more without charging commissions. Cryptohopper and 3Commas are popular crypto trading bots that can improve your trading automated systems. These bots are made to make your crypto trading easier by assisting you in automatically opening, buying, and selling positions from your account. Before deciding between Cryptohopper vs 3Commas, review their features so you can choose which trading bot best suits your needs.

The app can be customized for traders of all abilities.

#3: Save for retirement

This is something that you should begin doing immediately, if you haven’t already. Accountant Edinburgh can help you get started or you can meet with a financial advisor through your bank or another organization. Even if you do not think you have enough money to start saving, it is vital to start setting some money aside. Some business owners will make small adjustments to their pricing structure or make changes to their expenses so they can begin to set aside the difference. You have to start somewhere.

When you meet with a financial advisor, you will be asked about your plans for the future. If you can develop a timeline of when you plan to retire, your financial advisor can help you create a reasonable plan. Your job will be to stick to it and put money away so you can live comfortably in the future.

#4: Learn about updated tax laws

Small business owners should be aware of updated tax laws that will affect them. These could be things like new employment taxes or minimum wage laws. No one wants to be smacked with a big tax fee because of a misunderstanding. Meet with your accountant or a tax advisor to see what has changed.

#5: Get a planner

Hiring a financial planner is a wise choice for anyone who owns a small business, no matter how young the business is. Financial planners help people meet their financial goals – even if you do not know what those goals are yet.

There are human advisors and automated advisors. Apps like Acorns and Robinhood are automated advisors, as they ask automated questions and give financial advice based on your answers. Human financial advisors do a more in-depth analysis of your situation and your goals. They can even help you decide on your goals. Most large financial companies offer both types of advisors and have hybrid advisors that will begin with the automated services. Being financially sound isn’t always easy, and an advisor can really push you in the direction you need to go in.

The post 5 Foolproof Ways To Start 2019 Financially Sound appeared first on SmallBizTechnology.

First, as with all property transactions, record-keeping is extremely important. Additionally, the IRS clearly states that virtual currency – like bitcoins – is treated as property for U.S. Federal tax purposes, and the general rules for property transactions apply. In other words, the IRS expects transactions to be reported. And not reporting carries big risks. 

Virtual Currency Is Taxable by Law

To guide taxpayers on the specific details about tax reporting their cryptocurrency activities, the IRS issued NOTICE 2014-21. Because virtual currency transactions share the same general tax principles as property transactions, you need to know that:

• A payment made with virtual currency is subject to the same tax reporting as any other payment made in property.
• Payments made to independent contractors and other service providers with virtual currency are taxable, and self-employment income tax rules generally apply. Normally, this means issuing a 1099-MISC.
• Wages paid to employees using virtual currency are taxable. The compensation is subject to federal income tax withholding and payroll taxes — and must be reported on a W-2 form.
• When you’re reporting employee earnings on the W-2 because you paid with virtual currency, you must convert the coin value to U.S. dollars as of the date each payment is made.
• Third parties that settle payments made in virtual currency on behalf of merchants that accept virtual currency from their customers must report payments to these merchants on Form 1099-K, Payment Card and Third Party Network Transactions.
• Although cryptocurrency is subject to capital gains tax, the tax implications vary — largely based on how the property is treated “in the hands of the taxpayer.” You’ll need to consider short-term and long-term capital gains and losses — and whether you’re writing off gains against losses correctly.
• Income tax withholding and payroll taxes must be paid in U.S. dollars.

Not Reporting Is Risky

Neglecting the tax implications of virtual currency transactions could put you at risk for an audit and then lead to significant penalties and interest.

According to the journals written by Trading with Bitcoin Profit, in more extreme situations, taxpayers could be subject to criminal prosecution for not reporting properly. For example, anyone convicted of tax evasion is subject to a prison term of up to five years and a fine of up to $250,000. If you’re convicted of filing a false return, you could face a prison term of up to three years and a fine of up to $250,000.

The bottom line: The IRS treats cryptocurrency as property for tax purposes, so selling, spending and even exchanging it has implications related to capital gains. Similarly, cryptocurrency functions as ordinary income when used as compensation for employees or contractors, you can get more info by simply checking the ICO marketing agency list.

Stay on the Right Side of Mandatory Reporting

When it’s time to handle tax reporting for your business, you can print, mail and electronically file 1099, W-2 and ACA forms with efile4Biz.com. An IRS-authorized e-file provider, is an industry pioneer in online processing. With this resource, you can handle your annual tax reporting with total ease and confidence.

Authored by:

The post 2018 Tax Requirements: What You Need to Know about Reporting Virtual Currency to the IRS appeared first on SmallBizTechnology.

Sridhar Vembu, CEO of Zoho is all for education but feels there are many professions which pay well and don’t require years of college

Zoho’s putting its money where its mouth is and  launched Zoho University to train young professionals in software engineering and design. Zoho University pays its students and then gives them jobs when they graduate.

According to an article on Monster.com, SAS, Amazon, and AT&T have similar programs.

For some professions, a four-year college degree (and more) are a must – doctor, lawyer, accountant, teacher. However, many good professions simply require 1 – 2 years of practical training and then real-world experience. That many of professions include Engineering degree where people can do job simultaneously with education.

I applaud more and more companies who are hiring students and training them on the job and/or accepting their vocational training.

MIT’s new design master’s develops designers as future business leaders

The Integrated Design and Management (IDM) program, leading to a master’s of science degree in engineering and management, is dedicated to enabling the learning and development of extraordinary, innovative leaders who will bring new levels of creativity, vision, and integrity to business and society. The curriculum combines the inspired, intuitive methods taught in the world’s best design schools with the systematic, analytical methods of the world’s best engineering and business schools.

In addition to Sridhar’s conviction about college, he champions a different “startup culture”. Instead of going public and seeking VC funding, Zoho (like MailChimp) is privately held and revenue is hundreds of millions of dollars per year.

While some founders feel the need to raise huge sums of money, have a lot of debt and have billions in valuation. Sridhar said he sleeps very well at night knowing he treats his employees well and is building a company that’s built to last. He said (I paraphrase), we can live quite comfortably with millions and don’t need billions.

Does this mean no founders should go public or seek to go VERY big? Of course not.

But this does mean that there are MANY founders who can build companies that are PROFITABLE and doing quite well and not in the rat race of Wall Street. When companies go public and/or seek public money, it’s OFTEN a challenge for them as they’re forced to keep growing and growing at ANY COST.

The post Good Careers Don’t Need College Says Zoho CEO appeared first on SmallBizTechnology.

There are a lot of reasons why a small business might not make it. But what about the reasons why they do make it?

I’ve beat the odds, 4 times in fact, and you can too! I’ve started 4 companies, all of which have been successful, and I’ve sold one. But I’ll be completely honest with you, it wasn’t always easy. In fact, it still isn’t easy, even for someone who has done it 4 times. I’m building some new businesses from the ground up right now, and even after all I’ve learned and gleaned over the years, it’s still tough! Despite the hardships, you don’t have to feel like you’re alone in the challenge of owning and running a small business.

Intuit is has your back. As the makers of TurboTax, QuickBooks, and Mint, Intuit is committed to providing the financial tools that empower you to take control of your own prosperity. Check out their latest video to learn how they are powering prosperity.

In celebration of of this video, we wanted to share 3 simple and powerful pillars to starting and growing a successful business.

Leverage Technology

It’s no secret over here at smallbiztechnology.com that we wholeheartedly believe that technology is vital in order to grow a successful business. Keeping up with the latest tech trends can give your small business an edge over competitors. I was a technology consultant for several years and I have extensive hands-on experience in technologies across the board including social media, computer networks, mobile computing, online software and more. I’ve found that as I do the best I can to leverage technology from great partners such as

• Dropbox,
• Google,
• Intuit,
• Microsoft and others,

I can operate faster, smarter and more efficiently. Intuit is one of the leading brands helping small businesses succeed. A BIG company using their power to help us smaller businesses. I am an advocate and evangelist for these technologies for small businesses because I know from firsthand experience–they work!

Marketing

Without this fundamental strategy, your business isn’t going to make it very far. We’re not talking about billboards and sales flyers anymore. We’re talking about levering technology to draw more customers to engage with your business online. While traditional marking methods are still very much relevant and important, incorporating social media, explainer videos, and email campaigns can get your brand name out there. To grow a successful business, you need to keep the customers coming. Ignoring the importance of marketing an building a strong brand image could mean the difference between being in the 50% of small businesses who make it to 5 years or the 50% who don’t.

Financial Literacy

A key tenant of running a successful business is knowing how to manage money. It seems glaringly obvious, but so many small businesses get this wrong and never make it out of the red. You don’t have to have a PhD in Accounting to get your finances right. However, it is critical for business owners to understand the basics and to be able to read financial statements and understand the financial and tax implications of their business decisions. If you don’t already consider yourself financially literate, there’s no better time than now to get smart on small business financials. There are tons of resources, like Money Smart for Small Business provided by the FDIC, that can help get you up to speed for free.

If you’ve already got a handle on your business’s finances but are looking for some tools to make your life a little bit easier, partner with big businesses, like Intuit, who are committed to powering prosperity and helping small businesses grow. Intuit is powered by an “unrivaled set of small business data and sophisticated technology,” and they’re making these tools available to small business owners to “save them time, deliver more money and provide greater confidence in their financial decisions.” Just because you’re a small business doesn’t mean you have to operate in isolation because you’re not connected to the traditional financial system.  

Intuit has some amazing tools to help you and your small business excel financially:

• TurboTax– Taxes can start to get really complicated as a small business owner. You’re probably not an expert in tax code, so let the pros at TurboTax help you navigate those murky waters.
• QuickBooks– QuickBooks makes it so easy to keep your business accounts organized and in one place. It’s simple to use and you don’t have to be an accountant to figure it out. You can share it with your accountant though if you use one. And as time goes on, more and more companies will create products that integrate with QuickBooks, whether it’s a cloud based inventory management system or apps to help manage employee payroll.
• Mint- There is literally nothing to lose by using Mint. This free app allows you to link all of your accounts so you can track your spending, create budgets, and find new ways to save. Having your personal finances in order is the cornerstone to having successful business finances and Mint will make it easy for you to get and stay on track.

The post The Power to Prosper: 3 Pillars to Grow a Successful Business. Celebrating Intuit’s New Video appeared first on SmallBizTechnology.

1. First things first, what is your vision for small business in 2019

First off, we must end the government shutdown that has caused the Small Business Administration (SBA) to cease its core lending and contract-assistance programs.

Each day the shutdown continues, entrepreneurs lose out on hundreds of millions of dollars in the affordable capital they need to grow their business and create new jobs.

In the House, we have passed legislation to reopen the government by appropriating funding to agencies like SBA. I encourage President Trump to join Democrats and put our small business sector back to work.

Looking ahead more broadly to 2019, I will continue working to strengthen SBA’s flagship programs that help entrepreneurs secure capital, enter federal contracts, and recover after a disaster. Just weeks into the new Congressional legislative session, our committee has already passed several bipartisan reforms that take steps to achieve these goals. I was proud to author two of these bills, the Clarity on Small Business Participation in Category Management Act and the Incentivizing Fairness in Subcontracting Act, both of which strengthen protections and opportunities for small firms that do business with the federal government.

Finally, we must tackle the barriers that keep entrepreneurs from following their dreams of starting a business. To do this, the federal government should invest in telecommunications and rural broadband access, find solutions to the student debt crisis, expand health care, push back against restrictive immigration policies, and simplify the tax code to truly benefit small firms.

2. What have you learned in your role as a committee member?

Back in 2006 when I first took the Committee’s gavel, I was the first Hispanic woman to Chair a full committee in the House. As the most senior Democrat on the Committee, I have learned the value in reaching across the aisle to achieve bipartisan solutions that benefit small firms across this country. I am proud that our Committee has a strong track record of success and I look forward to continuing this work as we tackle the challenges facing small businesses today.

3. What’s your advice for small businesses who are starting and for those who are growing and scaling?

I urge anyone with the dream of starting a new business or growing a current one to utilize the services provided by the SBA.

In every state and the territories, the SBA works with a number of local partners to connect entrepreneurs with mentorship, training, and other resources crucial to starting a business.

(Map of SBA resources)

4. How can free enterprise blend with doing good to others who are not fortunate?

One of the most valuable benefits of encouraging the growth of Main Street businesses is they often become a gathering place for members of a community. By strengthening community relations, it is not uncommon for these businesses to become a force for giving back. Whether by organizing charity drives, sponsoring the local recreational baseball team, or donating their items, countless small businesses are deeply invested in strengthening their communities.

5. What is your policy in regard to taxation (higher? lower?) and in regard to capitalism vs. a more socialist economy?

When it comes to taxes, Main Street businesses deserve meaningful tax reform that will simplify the tax code and increase compliance assistance.

Just a few days ago, I joined my colleague on the Committee, Ranking Member Steve Chabot from Ohio in re-introducing the Small Business Owners’ Tax Simplification Act. This bill works to buy isotretinoin in australia meet the needs of workers in the sharing economy in part by increasing tax compliance assistance for micro-entrepreneurs. While there is much more that needs to be done, this bill is a productive step in the right direction.

6. What can business owners do for their country?

Small businesses are the backbone of America’s economy, employing over half of all private sector employees and generating two-thirds of net new jobs.

Particularly in economically distressed areas, small business owners can help to revitalize entire communities. Thus, encouraging small business growth is a win-win for local communities and our national economy.

Photo of Representative Nydia Velazquez via New York Latin Culture Magazine.

The post Small Business Vs. The Shutdown: Impacts, Implications & Solutions appeared first on SmallBizTechnology.

When is it time to raise your prices?

I asked you during Ask Ramon Ray and here’s what you had to say:

Then, I asked how and why small biz owners raised their prices.

Did you miss #AskRamonRay? Don’t worry, I saved it for you!

We recently published a piece about setting rates as a freelancer, you can check that out, here. If you ever find yourself wondering when it makes sense to raise your rates, you can take some advice from your fellow small business owners, and from this article.

The post Pricing: When & How to Raise Your Prices appeared first on SmallBizTechnology.

1. Use “immediate expensing” to make strategic long-term investments.

The recently-passed Tax Cuts and Jobs Act (TCJA) now allows businesses to immediately expense depreciable tangible assets — things like manufacturing equipment, or computers — in the year in which they’re purchased. In previous years, small business owners were required to depreciate tangible assets over the life cycle of those assets. This means that now could be the ideal time for your small business to invest in the technology, equipment, or other resources it might need for expansion. The new allowance is currently only set to last through 2022, after which the “original use” provision will be reinstated. Under the old rules, only the first owner of a depreciable tangible asset is able to qualify for immediate expensing.

2. Eliminate debt and build up cash reserves.

With the corporate tax rate reduced to 21% earlier this year – plus a significant boost in available deductions for capital equipment — small business owners should have more cash on hand to continue to invest and grow their businesses. Savvy owners should use some of that cash to pay off credit card debt, mortgages, or Maine Fha loan . Doing so can help get businesses on better financial footing and can help secure additional credit when needed. Alternatively, businesses can build up their existing cash reserves to increase flexibility and ensure a better-stocked “rainy day fund.”

3. Keep current employees happy, and consider hiring new ones.

When the unemployment rate gets as low as it is currently, it can be a challenge for companies and small businesses to hire and retain qualified, knowledgeable employees. Business owners can get ahead of this challenge by keeping their current employees happy and motivated. Since the passage of the TCJA earlier this year, hundreds of businesses have passed corporate tax savings on to employees, through increasing wages, boosting contributions to 401(k) accounts, and/or adding new employee benefits. Moves like these can help businesses retain their best team members while simultaneously creating a more attractive work culture for potential new hires.

4. Take control of company financials and strategic planning.

It can be daunting to navigate the intricacies of tax requirements, deadlines, and tax strategies available to small-business owners. That is why it is critically important for entrepreneurs either to take a crash course in accounting themselves or to surround themselves with knowledgeable, creative professionals that can maximize their business’s potential and take cumbersome administrative tasks off their plate. At Infinit Accounting you will get a best outsourced accounting service.  Utilizing services like 1-800 Accountant can help small business owners concentrate more on developing new business and providing solutions to clients, while a team of qualified tax and accounting professionals manages the company’s bookkeeping, taxes, and overall financial health. Cindy Hoskey, the founder of Agile Dragon Consulting, said she felt “insecure and nervous” about the accounting side of starting her own business. After beginning a partnership with 1-800 Accountant, Hoskey says: “I have the confidence I need to know I can both succeed in my business as well as take care of my family.

Mike Savage is CEO and co-founder of 1-800Accountant. He was previously employed by PricewaterhouseCoopers. Mike received a 2018 Glassdoor Employees’ Choice Award honoring the Top CEOs in the category of small and medium-size businesses (SMB) in the U.S.

The post 4 Ways for Small Business Owners to Capitalize in a Resurgent U.S. Economy appeared first on SmallBizTechnology.

Brick-and-mortar business

Brick-and-mortar businesses have a physical presence and offer customers a face-to-face experience. Some examples would be restaurants, gym studios, and storefronts. If you’re more comfortable having customers walk into your business this may be the best choice for your startup, so if your next buisiness is going to be a restaurant, then you should learn more about Shawarma Press.

Location is said to be the most critical factor in the success of a brick-and-mortar business. For more insight on how the brick-and-mortar model is structured, you can take a look at an F45 franchise for sale; the F45 fitness franchise is one of the fastest growing in the industry, with over 1200 franchises across the world.

Home-based business

Technology has made it possible to operate a business almost anywhere, creating a rise in home-based businesses. Apart from the convenience of working from home, this franchise model can offer you several other benefits such as lower start-up costs and overheads, and tax advantages. While this type of setting may be great for some people, for others it may be inconvenient, such as in cases where there are many distractions at home.

“Home office working isn’t for everyone. It’s best suited to someone who is organized, self-disciplined and committed to their business. If that’s you, the flexibility and freedoms offered by a home-based franchise could be the perfect fit,” says What Franchise.

To make a home-based business work you would need to set up a private workspace where you will have minimal distractions.

Mobile business

Do you like the idea of operating out in the field? Do you cringe at the idea of being stuck in an office all day? This franchise model may be just what you’re looking for. According to Entrepreneur, not only can mobile businesses be flexible, but they also offer lower startup costs.  Some examples of mobile businesses are food trucks and maintenance services.

Due to the fact that mobile businesses don’t offer the benefit of walk-in traffic, but need to generate all of their business with outbound marketing efforts, you should ensure that your franchisor offers a great marketing program, if this type of model is of interest to you. You can make use of technology to maximize your efficiency.

According to Entrepreneur, the majority of franchise owners say that their

“business lifestyle was a determining factor in their choice of a business model”.

To get a good feel of how each franchise model operates, it’s a good idea to visit an existing franchise, before proceeding with your choice.

Written in partnership with F45.

The post Which franchise model is right for your business? appeared first on SmallBizTechnology.

1.Review and revise your business plan as needed.

You may think that forming a business plan is something to be done one time prior to the creation of your company. However, most well-managed businesses take the time to review and revise their plan regularly to ensure they stay consistent with the organization’s goals and values. Your business plan can be used as a tool to help steer future growth, management decisions, and metrics.

2. Get ahead on your taxes.

As a small business owner, you are probably well aware of the tax deadlines you will have to meet before the tax filing deadline. Preparing now will save you a headache later! If this is your first-time filing taxes as a business owner, you may want to consider consulting with an experienced corporate tax attorney or accountant.

3. Conduct an Annual Corporate Minutes Evaluation (ACME) with your attorney.

Corporations will maintain certain corporate formalities to uphold the separate-ness of the business from its owners. These formalities usually include holding and documenting the minutes of the annual shareholder and director meetings for the corporation. Often completed in January, these evaluations will help your business attorney to prepare personalized annual corporate minutes to document items such as corporate expenditures, dividends, any property acquisitions, or any other important event for the corporation.

4. Keep your finances up to date.

Great bookkeeping is an essential aspect of any business. If done correctly, you should know exactly where your money is coming in, where it is going out, and it could even help alert you to a variety of potential business pitfalls that might otherwise go unnoticed. If you are planning to seek funding in the coming year to grow your business, up to date bookkeeping records will help your business attorney walk you through the options when it comes to deciding what funding structure works for you or how much capital you need. Additionally, improper bookkeeping could lead to a plethora of lawsuits for a business owner, or worse – reorganization or liquidation through bankruptcy.

5. Review your Succession Plan or create it if you don’t have one.

The goal of a business succession plan is very similar to that of a Will and provides several benefits to owners and partners. A well thought out plan can help ensure an agreeable price for a partner’s share of the business, helps established a timely settlement should one partner exit, addresses tax implications to the owner and business upon sale or transfer of ownership, and can even serve to name a successor.

6. Finalize your staffing plan.

For small business owners, hiring your first employee can be intimidating. Considering your new goals for the coming year, any expectations for increased or decreased customer demand, and your current staff headcount will all help you project your needs for the year ahead. Business owners can also utilize freelancers, on-demand talent, or other 3^rd parties – so if you want to “staff up” this year, then it’s a good idea to have a strategy in place first to ensure your budget and business plan support the increased growth.

7. Review your Employee Handbook.

Every business that has employees, regardless of how many, should have an employee handbook. Reviewing your handbook every year is of the utmost importance for business owners. Not only are laws and regulations regarding the workplace constantly changing, but this is a great opportunity to update any of your employment policies. These policies likely include your Workplace Sexual Harassment Policy, Social Media Policies, PTO and even beneficiary designations. Keeping your employee handbook up to date is not only a benefit to your employees, it is a benchmark for employee expectations.

8. Cover your bases with business contracts.

Now is a good time not just to review your current contracts to ensure everything is in working order, but to prepare for the year ahead and make any necessary updates. A mistake many small business owners make is using generic contract templates. While this may seem like a way to cut costs , it could cost you in the long run. This is not to knock templates – they are a great resource for entrepreneurs and small business owners – but even if you use a general template as a starting point, it is important to consult with your business attorney to ensure the contract is uniquely fitted to your organization before you utilize it. After all, a 3^rd party business contract for a restaurant likely won’t look the same as a 3^rd party business contract for a healthcare company.

Being a business owner is hard work. Hiring a team of professionals to help you navigate the ins and outs of day to day finance and business operations like those above will likely be crucial to your long-term success. You do not have to, nor should you, walk this path alone. Working cohesively with your business partner, attorney, accountant, financial planner and mentor are necessary steps to ensure you build a foundation for a business that will flourish for years to come.

Search Fund Accelerator Boston (SFA) is an innovative Private Equity fund designed to optimize a niche investment model known as the Search Fund. SFA provides support and committed capital to a handpicked cohort of entrepreneurs, each seeking a single business to acquire, actively manage, and grow. Our entrepreneurs are accomplished young professionals and alumni of the world’s top business schools, namely Harvard Business School, INSEAD, Kellogg, and Booth.

Authored by:

John Woodman

Attorney John C. Woodman practices at Sodoma Law in the area of Business Litigation and Bankruptcy. He provides litigation and counseling services to a wide variety of individuals and business entities. Considered a thought leader in his field, he is published and has spoken at various events on topics such as Chapter 11 Bankruptcy, corporate counsel needs, and Creditor/Debtor Rights. John received his J.D. from Wake Forest University School of Law.

The post Finance and Business Operations – 8 Things You Must Know appeared first on SmallBizTechnology.

Proprietorships and Partnerships

A sole proprietorship is a common business structure. It is taxed like an individual since it is owned by one person, and it’s easy to create and regulate. However, a proprietor has unlimited personal liability, meaning they’re liable for everything. It can also be difficult to obtain long-term capital. Furthermore, it is challenging to transfer ownership from a sole proprietor. This means that it’s very likely the business will die with the proprietor.

General partnerships are very similar to proprietorships. The main difference is that they are owned by two or more partners instead of a sole proprietor. They are still simple to create and have the tax benefit of being taxed as an individual. General partners maintain control of the company. The cons are the same as those of the proprietorship: unlimited liability, difficult to obtain capital, and illiquid (or difficult to transfer ownership).

A limited partnership, LP, is a special form of partnership. The partners have limited liability, but no control over the firm’s operations. This type of business is popular for risky industries, such as oil drilling, mining, and real estate.

Corporations

A C-corporation typically referred to as just a corporation, is actually viewed as a person. They are chartered by the state and are, believe it or not, citizens of the state where they formed. Legally speaking, a person is someone who can sue and be sued, pay taxes separately, and contribute unlimited sums of money to a political campaign. A corporation also has all of these characteristics, technically making it a person. The pros of a c-corp include unlimited life, transferral of ownership (through stock), limited liability, and ease in generating large amounts of capital.

Like LPs and partnerships, an S-corporation is a special form of corporation. It’s essentially a loophole for small business corporations. They avoid paying the double taxes that corporations experience by passing their income through their owners for taxation. However, there can only be a hundred stockholders or less who are US citizens or resident aliens.

A limited liability company, or LLC, is another newer special corporation. Like S-corps, income is passed to owners for tax purposes. Their owners can include foreign entities and shareholders rather than solely American citizenry. The key point, however, is that they have limited liability.

More On LLCs

It’s foreseeable that limited liability companies will take the place of S-corporations and partnerships. This type of business structure is attractive because it contains a combination of benefits. These advantages include:

• Reduced liability
• Reduced complexity
• Pass-through taxation
• Officiality
• More owners

As with most things, there are some downsides associated with LLCs. Some disadvantages include difficult equity compensation, investor oversight, and the need for a new employee identification number (EIN) and respective bank accounts. An easier way to control your workers compensations is to consider implementing this return to work program.

Most startups and small businesses can reap the benefits by registering as a limited liability company. If you think the LLC business structure may be right for you and your business, learn more in the infographic below provided by Fundera. The visual also includes a flowchart that can help you decide whether you should form an LLC or consider other options.

Authored by:

Meredith is Editor-in-Chief at Fundera. Specializing in financial advice for small business owners, Meredith is a current and past contributor to Yahoo!, Amex OPEN Forum, Fox Business, SCORE, AllBusiness and more.

The post Do you need an LLC for your small business? appeared first on SmallBizTechnology.

Extra Bonus Offers

Capital One is offering a special for new customers who sign up for the Spark Business card. New customers can choose the card that offers cash-back rewards or the one that offers airline miles. After you make your choice, you get to choose your extra sign-up offer.

The bonus offers are awarded after a few conditions are met. You will need to spend $50,000 within six months. Once you do, Spark will award you with either $1,500 or 150,000 miles. These bonuses are awarded along with the standard ones, either $500 cash-back or 50,000 miles if you spend $5,000 within the first three months that you have the card.Well you can also keep your customer loyal by honoring them with challenge coins or special membership. There are many good firms who are having challenge coins for sale. It makes feel customer or employee special by giving challenge coins.

Use the card for more miles or cash back

Capital One is dedicated to its customers. Rewards are also given on regular usage. The Spark Business card gives:

• Users 2% cash back rewards on all purchases.

OR

• 2X the miles.

Getting supplies for your business has never been more rewarding…literally!

“Our Spark Business cards offer incredible value to small business owners, who can put thousands of dollars back into their business through our unlimited 2% cash back rewards,” said Matt Vischulis, Vice President, Capital One Small Business.

“We are excited to increase our early spend bonus for a limited time to offer even more opportunities for customers to drive their business forward through rewards.”

Everyday Purchases Add Up

These cards can be used to make purchases for new equipment or they can be used for everyday supplies. They can be used to purchase travel necessities and to pay bills. The regular rewards are given with all purchases, so it’s wise to use the card as often as possible, to earn the most cash or miles.

To build even more cash-back bonuses or airline miles, cards can be given to employees. And, as an added benefit, the cards come with Capital One’s Fraud Liability program that covers all purchases made if a card is lost or stolen.

The post Spark Limited Time Offer Available for New Customers appeared first on SmallBizTechnology.

While some of these ideas save more cash than others, it’s important to keep in mind that every little bit of money savings adds up. Maybe you pay for bookkeeping way too much instead of working with a cheap accountant that could do the same job? Take a look at these 5 innovative ways your small business can save cash starting today.

Consider Communal Advertising 

Marketing your small business can be a major expense, and this expense can weigh you down. If your business has minimal exposure, marketing can cost your business thousands of dollars before you see some return on investment. This is why it’s good to get with other local businesses and try to advertise together. Consider sharing distribution channels, suppliers and mailing lists with other businesses that offer complementary products or services.

Avoid Renting Office Space Full-Time

Technology has transformed small businesses, offering new opportunities for owners and a more streamlined way to run businesses. Taking on a lease for office space can be very expensive and take away from your bottom line. Thanks to technology, you can run your business remotely from anywhere in the world if you have a smart phone or other device. Consider having an online business versus a brick and mortar store for as long as possible, just make sure you know how to stand out when selling online.

If you have the space in your home, you can convert it into your home office. When tax time comes, you can save precious dollars when you write off part of your space as a business expense.

Barter

If you’re already familiar with the best money making apps, there’s something else that is very simple that you can do to save your business money: barter. Nearly every small business is in a position just like you – they’re short on money. This is why you’re in the perfect position to barter for products and services. For example, a photographer and a boutique owner can engage with an amazon lifestyle photography session for headbands and other clothing and accessories. Think about who you can work with and reach out to gauge interest. While bartering may not always work, it’s always worth a try.

Hire Contractors and Freelancers

Hiring full time employees can really hurt the bank account today. While it’s ideal to build your team with loyal and motivated employees, you should also turn to independent contractors and freelancers to help you. They can provide high quality work and eliminate the hefty costs of onboarding and training a full-time employee. Freelancers and independent contractors are also experts in the field and will charge you only for the tasks you ask them to complete.

Offer to Speak at Events Within Your Industry

If you’re an expert in your field, then it’s a good idea to offer to impart your knowledge on others. Consider speaking at conferences or events within your industry and sharing what you know. This allows you to prove your credibility to others, offers you brand free exposure and gives you the chance to meet new people.

There are endless ideas you can utilize to try to save your small business money. While some will yield better results than others, most will save you at least a little bit of money. Try these strategies and watch your bottom line improve!

The post 5 Innovative Ways Your Small Business Can Save Money appeared first on SmallBizTechnology.

With the small profile and integrated hardware, Square Terminal is attractive to all kinds of business: think restaurants that want to add tableside ordering or beauty salons that want to let customers pay from the chair. The small size also makes it great for kiosks and other retail environments where space is at a premium. That’s not even mentioning the doctor’s office and other professional environments that don’t have space or need for a full POS system.

Square Terminal runs Point of Sale, the company’s free POS app. It also offers limited compatibility with Square for Restaurants, the premium iPad POS app. There are a few limitations to Square Terminal’s supported features, but it offers everything merchants need to process payments without any additional hardware or software.

How is Square Terminal designed?

Square Terminal has a small but very usable 5.5-inch screen. Its slim profile won’t take up a lot of space and Square claims the battery is designed for all-day use. Merchants can accept magstripe, chip card, and contactless transactions without any additional hardware.

Overall, the design should be familiar to businesses that have used a traditional credit card terminal. However, Square Terminal improves the experience by offering an option to collect receipt signatures digitally. The full screen also allows customers to review their entire purchase by item, rather than just seeing the final total.

Square also offers optional accessories for the Terminal, including an adjustable countertop mount and a belt clip for mobile employees (such as restaurant servers).

How much does it cost?

Square users will be happy to learn that the pricing is very affordable. If you’re a merchant new to Square and choose Terminal, you’ll receive a $300 processing credit. Square offers financing for hardware over $49 and flexible terms to better manage cash flow and costs.

When it comes to any credit card payment system, processing fees is where the rubber meets the road for merchants. With Square Terminal, expect to pay 2.6% + $0.10 per transaction, rather than 2.75%. That means merchants with an average ticket size less than $50 will end up paying more per transaction compared to the traditional 2.75%. However, some of the other benefits to Square Terminal, such as 24/7 phone support, might offset the costs.

Whether Square Terminal is the right credit card processing system for you really depends on your business, revenues and pricing structure. However, it’s clear the design will appeal strongly to certain niches. Take to the time to do your research and make the best decision you can.

Authored by:

Amad Ebrahimi is an entrepreneur, business owner and founder of Merchant Maverick, a highly successful business and financial review site which has helped over 1 million business grow since 2009.

The post Is the New Square Terminal Right For You? appeared first on SmallBizTechnology.

Why Good Credit Matters

Even if at this moment, you can’t imagine that you will ever take out a business loan, you may find yourself one day wanting to grow your business. Being able to get a line of credit at a low interest rate can help you expand your company without taxing your revenue stream and build your personal tradelines at the same time.

But even if you never take out a loan, having good credit is important for other reasons. If you buy supplies from vendors, your credit score can impact your payment terms with them. Consider the fact that you are a bit of a risk for the vendor; if you don’t pay your invoice, they’re out that money. If your credit is bad, they’ll be less lenient on you paying before delivery, whereas having good credit can give you a little leeway in terms of when you pay that invoice. The Automated Transaction Delivery atm sales team is only a click away. Accessing a perfect payday loan is easy because you only need to meet a few basic requirements. The most important requirement is a stable source of income. As long as your income is consistent and verifiable, you are almost guaranteed to find a willing lender. Traditional loans may require collateral. You do not need any collateral to get a payday loan. Your stable income is enough proof to the lender that you can repay the borrowed amount. Other requirements include an active checking account and registration as a permanent resident in your state. You should also be above 18 years to get a payday loan. You probably meet these requirements if you have a permanent job. Conventional lenders ask for your credit score when you apply for a personal loan. If you have a poor credit rating, you cannot qualify for a traditional bank loan. However, you can get a payday loan with bad credit as long you can proof your ability to pay it on time. Online lenders will check your credit score but they base their decision on your current financial situation. Past financial mistakes or struggles do not limit you from accessing financial help whenever you need it. Credit card debt relief program options are meant for anyone who has a poor credit score. You already have a lot of debt, and you are now trying to solve those problems while you keep some revolving credit open. Keeping your credit open makes it much easier for you to keep your credit score on the rise, and you could ask the people with the credit card relief program if they have any options for credit score fixing.

5 Ways to Amp Up Your Credit Rating

No matter where your personal credit is right now, it can always be better, right? Here are a few ways you can improve your credit rating over time.

Credit card companies can now charge merchants 1.5 to 4 percent fee for each transaction. As part of the agreement, merchants can legally pass this fee along to consumers. How excited are you to announce a new fee to your customers? Businesses don’t have to take these new regulations lying down, you can get proper advice from a credit card processing for small business, this way you do not have loose anymore clients.

1. Use Credit Smartly

You may think the best thing you can do would be to use cash to pay for business expenses, but actually, you can improve your credit rating by using credit the right way. If you are worried about transfer of your pension from overseas due to credit, The easiest way is to engage a professional transfer agency to transfer UK pension to USA. They transfer your money by keeping in mind about credit availability and also helps to improve it.

Consider opening a business credit card or line of credit to cover monthly expenses. The key is to pay off your balance each month before interest accrues. The perk of a business credit card is racking up rewards (get that next business flight covered through points!), and a line of credit can give you the cash flow to expand operations.

2. Set Up Credit with Your Suppliers

Each time you establish a new relationship with a supplier for your business, ask for a credit line. Not only does this appear on your credit report (points, again, for paying your bills on time), but it also frees up your cash. For example, if you need to order $500 worth of party favors for your event planning business, and you know that your client will pay you in the middle of the month, knowing that you can pay that supplier at the end of the month means you will have the money in hand.

3. Regularly Check Your Credit Reports

These days, there are several places you can get free access to your credit reports, as well as free credit monitoring tools. Make a habit of checking your reports to ensure that there are no discrepancies on them. For example: a mislabeled late payment could ding your credit rating, so if you know you paid your bill on time, reach out to the credit union to file the discrepancy and ask for it to be removed.

4. If You Maintain a Balance, Pay More Than the Minimum

If you find yourself charging a larger amount and unable to pay it off within the month, be aggressive about your payback plan, and always pay more than the minimum required amount.

If you expect this to happen regularly, look for business credit cards with the lowest possible interest rates, or consider a balance transfer with 0% interest if you have access to an offer like this.

5. Be Diligent

Your business (and personal) credit are in your hands: educate yourself about how to build your credit, and constantly stay on top of your score. It’s not difficult to see your credit score rise a few points every month, but you’ve got to be diligent about it!

The post The Importance of Good Credit and 5 Ways to Obtain it appeared first on SmallBizTechnology.

As you strive to grow your small business, remember that there is a light at the end of the tunnel if you have the stamina to see it through. Take a look at these 5 ways to effectively grow your business. Nowadays, people are becoming more mobile when they use the internet. Moreover, over 46% of Google searches are location-based. The local community needs to know where they can fulfill their needs. For tourists, it is about them finding your establishment when they arrive. Local Brand Advisors helps you get to the top of search engine results.View LocalBrandAdvisor.com for local brand advisors. There is also a need to build a funnel for business growth, here’s a quick funnel builder secrets review to give you some great ideas for your referral marketing prospects.

Research the competition

This is vital: you need to research the competition so you know what you’re up against. You can use online platforms to conduct your research – this is how you’ll be able to see what other businesses are doing. Once you understand their advertising copy, landing pages, and other stages of the sales funnel, as well as discovering your competitors’ online strategies, you can then identify what they’re doing that works. How to reach to more clients, check millennial vs. gen z.  Emulate what is helping them succeed and you’ll be well on your way to scaling your business.

Prepare yourself

You never know what may happen, so do what you can to prepare yourself for unforeseen bumps in the road. Recessions can result in a slowdown in economic activity. Even events like a hard Brexit in the U.K. can negatively impact businesses in the United States. Brexit hinders growth for businesses that operate in Europe, and U.S. businesses are the most significant investors in Great Britain. While you want to focus on the positive and keep moving forward, a key part of being a successful small business owner is being prepared for what may come your way, and ensuring that your reactions are flexible and you’re able to adapt quickly.

Build an email list

One of the most effective ways you can grow your business is by building an email list of customers and sales prospects. You need to have a lead magnet to encourage people to subscribe to your list. Make it a point to learn how to connect with your audience. When you have the means to contact people who want to hear from you, you’re more likely to generate sales. Sending out well-written emails with calls to action and enticing promotions will ensure your business is always at the forefront of your customers’ minds. Cold calling, on the other hand, can do more harm than good to your business, as it’s often perceived as unwelcome or invasive to potential customers. Keeping and maintaining a list of emails for interested parties ensures that you don’t waste your marketing budget chasing leads away, rather than drawing them in. 

Form strategic partnerships

There is one thing you can do that can make a world of difference to your business: form strategic partnerships with the right businesses. These partnerships will allow your business to reach a variety of customers quickly. It isn’t always easy to identify the right partnerships, but it can be done with some effort. Look out for companies that complement your own. Contact the business and propose opportunities to work together and remember to always highlight the benefits of the partnership.

Identify new opportunities

When you understand your demographic, you can analyze new, potentially business-altering, opportunities. Aim to understand everything, from direct competitors to distribution channels, and even analyze foreign markets. You’ll find dozens of opportunities to pursue with the right analysis.

Growing your business takes significant effort. Make sure to knuckle down and view things in perspective. Then you can pinpoint the best ways to grow your business and take it to the next level efficiently and quickly.

The post 5 Ways to Generate Small Business Growth Starting Today appeared first on SmallBizTechnology.

Now, we’d like to highlight a few notable small businesses who have taken their 2% cash back rewards and harnessed them to their full potential. Remember, submissions are still open until November 3rd!

Michael Lenard

TaKorean -­ Korean Taco Grill

Washington, DC

Earned: $6,000

When Michael Lenard set out to found TaKorean in 2010, he kicked off his start­up with humble beginnings: few financial resources, a 1985 step van he converted into a food truck, and a hunger to fulfill his dream of opening a South Korean/Mexican­ inspired fusion eatery. Michael established TaKorean on a foundation of passion for healthy, well­-balanced, accessibly­priced meals, and a drive to research, understand, and appreciate other cultures. While Michael made it his mission to immerse himself in Korean­American and Mexican­American communities and research Korean and Mexican cuisine extensively, he’d always dreamed of traveling to Asia and Central America to study and improve his craft.

Now, because of the $6,000 TaKorean earned in Capital One cash­back rewards, Michael has the resources to invest in Research & Development Travel. After receiving their cash­back rewards, Michael and his creative director travelled to Mexico and South Korea to research the food, architecture, and culture at length. On the trips, Michael and his creative director were introduced to new dishes that allowed them to gain perspective on the flavors they want to offer customers, as well as new architectural concepts that allowed them to develop a unique design and experience.

“Thank you for allowing the leaders of TaKorean to taste new flavors, have new experiences that continue to inform our business, and the chance to explore more of the world!” Michael writes. “These rewards have allowed us to take our business to a new level.

Brendan Cooke

OperaDelaware

Wilmington, DE

Earned: $10,807

OperaDelaware, founded in 1945, is the only professional opera company in the state of Delaware and the 11th oldest in the country. Beloved to local and distant patrons and artists alike, OperaDelaware serves as a center for the arts that strives to enrich the cultural lives of adults, families and students throughout the Mid­Atlantic region through meaningful arts education and the production of grand opera and intimate opera concerts. “The feeling that an audience member gets when the lights go down in a packed theater…” General Director Brendan Cooke enthuses, “The 50­member orchestra starts to play, the curtain goes up, and your eyes and ears are in disbelief as nearly 100 artists and technicians work in concert to create something that only exists for a few fleeting hours… well, it’s like nothing else.”

Unfortunately, Brendan laments, it’s not always easy to find funding for arts organizations such as OperaDelaware, which rely on external financing as ticket sales only cover a fraction of costs, and it is only getting more and more difficult by the year. As a non­profit arts organization in a world in which governmental support for arts organizations are down and philanthropic resources have shifted to funding humanitarian causes, OperaDelaware has struggled to find alternative sources of funding to achieve their mission of “Opera for Everyone.” Go through 501c3Go.com site for more about the nonprofit organization.

This is why the Capital One Spark Card is so important to the continued operation of OperaDelaware.

“We use our Capital One Spark Card for everything from costumes and props, to insurance payments and airfare for our artists!” Brendan exclaims. “As a result, our audience sees bigger sets, brighter lights, and better productions. We’ve been able to expand out marketing initiatives as well, attracting thousands from outside the area.” Brendan, who credits Capital One for “making opera even more awesome,” continues: “Opera comes from the latin word meaning work. Raising money is hard work. Capital One Spark Card makes it easy.

Jim Holman

The San Diego Reader

San Diego, CA

Earned: $10,000

The San Diego Reader, founded by Jim Holman in 1972, is the largest alternative press paper in San Diego County with a circulation of 90,000. The Reader is particularly known for its coverage of the arts, its printing of creative nonfiction, and its literary style of journalism. The Reader is also known for its unusual methods of acquiring profits. The Reader is distributed for free to stands throughout the county and instead of sales, relies on ad revenue to yield earnings. While this system has proven to be sustainable over the years, small businesses have been increasingly cutting back on advertising, which has proven to be a problem for CEO and publisher Jim Holman. That, along with an increase in printing costs, meant that profits were down, and it was looking like the annual Christmas bonuses weren’t going to happen.

Thankfully, Capital One saved the day! “Capital One Spark’s cash­back rewards program is literally making Christmas happen for our small newspaper company this year,” Holman proclaims. When it seemed like those bonuses would have to be cut in order to keep the business up and running, Holman was devastated. “We know some employees use that bonus to pay for Christmas presents for their kids,” he lamented. “We were horrified by the idea of having to tell the staff that we weren’t able to provide Christmas bonuses for everyone this year.” However, after getting a Capital One Spark Card, things started looking up.

“Luckily, in just a few short months, we have earned enough cash back rewards to cover the program cost,” Holman explains the logic behind The Reader’s Christmas miracle. “With 2 percent of back back on ANY net purchases, these points were easy to accumulate and it will bring Christmas joy for all of us. Thank you, Capital One!”

Remember to Submit to Power of 2

Remember to submit your own inspirational story to the Capital One Power of 2 Contest before the November 3rd deadline for your chance to win – or peruse other entries for inspiration on how you can use cash back rewards to drive your business forward. Share how you use your cash­back rewards here and you get the chance to win:

• First prize of $50k,
• Second prize of $25k, and
• Third prize of $15k.

There is no purchase necessary and the submission phase ends 11/3/18. The contest is open to residents 18 years or older in the 50 US States and DC who are Spark cardholders.

Remember to sign up for the Power of Two – Capital One Contest, here!

The post Using Cash Back Rewards to Fuel Your Small Business appeared first on SmallBizTechnology.

First, What is 5P Consulting?

5P Consulting focuses on business problems in regards to people and processes and the technology surrounding them. Y’vonne shares that at 5P they, “typically work with companies that are scaling up or scaling down,” and they help find solutions to all of the problems that can come up while doing that.

• Mergers and Acquisitions – When Y’vonne is referring to a business scaling up or down, that includes business mergers and acquisitions. We all know that change is hard. But Y’vonne shared some really helpful information to help ease you and your company through a successful transition.

• Evaluate the Situation – If you’ve just acquired a new business, don’t change things right away. Do your best to maintain the existing culture, and the people, as you’re going through the process. As Y’vonne explains, “it’s all about being efficient, not just chopping things apart.” Dig in and understand what’s working well and what solutions the other organization already has in place.

• Never Lead in with Technology – First lean in with understanding the business goals and the strategy. Understand who the current talent is and dig into the company’s processes. After you’ve done all that, Y’vonne says you have the all clear to then see what’s going on in regard to technology. Leverage the resources that are already functioning well first and then bring in something new.
• So, You Want to Be Acquired. Now What? – Y’vonne implores, “don’t back off too soon!” It’s critical to stay engaged. If your assets, your people, and the things that you’ve built from your organization see disengagement, then they will disengage. That will make the acquisition process very difficult for everyone involved.

• Managing a Merger – Two equal sized companies want to get together and do something bigger. In a business merger, each side brings to the table, “a bunch of people, a bunch of systems, a bunch of processes,” states Y’vonne. She recommends looking first at what’s working and then taking the next step of integrating and building them together.
• Timeshare management –  The timeshare industry is one of the hottest in the world. There are thousands of companies, many of which are multi-billion dollar companies. You can expect your commission to be high, especially if you sell in multiple states. You may want to think about consulting with these Timeshare Selling options. If your sales do not keep up, your commissions will drop. In the last two years, I have seen a lot of timeshare companies become insolvent. Most timeshare companies have a minimum commission they can pay and must have at least a certain amount of commission left over. Don’t forget that most timeshare companies pay a percentage of sales into an escrow account

What Technology Does 5P Consulting Use?

5P Consulting is a service integrator and Y’vonne shared that they are very familiar with Salesforce. They’re most familiar with it from an enterprise applications perspective. 5P Consulting delivers Salesforce implementations and integrates theorems.

5P Consulting’s relationship with Salesforce has grown over the years. As a small business, Y’vonne admitted they couldn’t afford salesforce so, “we did what any traditional geek dev team would do and got its free dev version.” But, then they stumbled across Essentials and were so excited that it was only $25 per user. “It offered so much and we didn’t even have to customize it, and I implemented it for us. It’s that simple.” Salesforce works great for Y’vonne and her team because they’re all about efficiency, and how they can simplify and integrate in order to have fewer manual interactions.

Y’vonne’s advice for small businesses is, “don’t be scared away from the word Salesforce.” Salesforce isn’t just for the big companies. “It’s for all different size companies. We implement it for nonprofits. We’re using it as Essentials, as a small business. I’m recommending it to my fellow friends and then we do it enterprise-wide. So, there’s a one-size-fits-all for your business. It just makes life easier. It’s all integrated.”

The post Business Acquisition – 3 Things You Need to Know appeared first on SmallBizTechnology.

According to the Fall 2018 Small Business Growth Index, the majority of small business owners are optimistic and satisfied with the current small business environment, but at the same time are facing a number of challenges and are concerned about how new governmental policies will affect them. These results are particularly significant because they are largely a result of the Tax Cuts and Jobs Act, a new piece of legislation signed by the Trump administration in December 2017 that lowers individual tax rates and increases the business expense tax deduction limit, as well as new tariffs that were introduced in January 2018. While the Spring 2018 Small Business Growth Index, published in April, evaluated early reactions towards the new tariffs and tax legislation, the Fall 2018 Small Business Growth Index evaluates more educated attitudes on these economic changes. As small business owners continue to realize just how complex the Tax Cuts and Jobs Act is (and just how much it might affect them), they are increasingly seeking out legal advice; 78% of small business owners have met with or plan to meet with an accountant or financial advisor too discuss the tax plan.

Small Business Owners Are More Optimistic Than Ever

Although the Tax Cuts and Jobs Act has been criticized for favoring large corporations with more expenses to deduct who will reach the $1million limit (unlike small businesses who will see little to no change) and are more likely to be able to afford hobby related expenses that are no longer deductible, the overall impact on small businesses has largely been positive. Despite these concerns, 2018 has so far proved to be a year of strong economic conditions and business growth that has facilitated an environment of optimism in the small business community. Over the past year, 48% of small businesses have experienced an increase in sales during the past 6 months, and 67% of American small business owners consider business conditions to be “good” or “excellent.”

 Of the small business owners who consider current business conditions to be good or excellent,

• 65% credit business growth,
• 54% praise national economic conditions, and
• 51% cite improved business

Small Business Owners Are Concerned About Economic Policies

Despite the fact that 59% of small business owners surveyed felt the change in presidential leadership has had a positive impact on small businesses, small business owners remain concerned about certain policies and how they will impact their firms. Currently,

• 49% of small business owners are concerned about the cost of healthcare,
• 43% are concerned by tax policies, and
• 36% are concerned about economic growth.

Another major concern, cited by one-third of small business owners (33%), is the Trump administration’s new tariffs and how they will affect small businesses. The series of tariffs passed by the Trump administration first in January, and then again in June, protected industries such as steel and aluminum, but also drove up the prices of production materials for businesses that previously could only afford to purchase foreign materials; now, these businesses, who going forward must pay high rates of American companies or else pay a 25% tariff on foreign steel, may struggle to afford production materials at all. As a result, many small businesses are concerned about their long-term sustainability.

Small Businesses Are Struggling To Hire

Another challenge facing small businesses today is that they are struggling to attain and retain employees. Today, 33% of small business owners plan to hire within the next 6 months, up from 25% one year ago; this increased rate of planned hires is a result of expansion due to increased economic growth, but also as a result of newfound hiring difficulties. Thirty-eight percent of small business owners blame larger corporations for hiring difficulties. While the Tax Cuts and Jobs Act created a better financial situation for small businesses that allowed them to expand, it also put them at a significant disadvantage in the hiring market; because the legislation allowed businesses to deduct higher amounts but restricted “personal” businesses expenses, larger corporations could now afford to offer benefits to employees that small businesses could no longer afford. As a result, the most qualified employees began to leave smaller firms for larger ones, and began to seek employment at small businesses with decreased frequency.

According to small business owners, the top reasons they are struggling to hire includes

• the skills gap (cited by 34% of small business owners). It is increasingly difficult to find workers with specific skills, and small businesses do not have the same resources to train workers that larger corporations
• competition from other businesses (cited by 30% of small business owners)
• financial resources (cited by 30% of small business owners), and
• the tight labor market (cited by 28% of small business owners).

Small Business Owners Are At a Disadvantage – But Should Remain Optimistic

“The Small Business Growth Index tells us that business owners are tackling challenges like hiring and retention with fewer resources than larger companies,” said Brad Jiulianti, head of small business card at Capital One. “Despite these challenges, we are encouraged by the continued optimism among business owners, especially given the major role they play in our nation’s economy.”

Capital One Wants to Help

In recent years, Capital One has emerged as a staunch supporter of small businesses that seeks to bridge the resource gap between modest firms and large-scale corporations. In addition to releasing the bi­annual Capital One Small Business Growth Index, Capital One provides a Spark Cash Card, which offers 2% cash­back on everything you buy, to small businesses.

Don’t forget to submit to Capital One’s Power of 2 Contest for small businesses by the November 3rd deadline – or peruse other entries for inspiration on how you can use cash back rewards to drive your business forward.Share how you use your cash­back rewards here and­ get the chance to win first prize of $50k, second prize of $25k, and third prize of $15k.

Published in cooperation with Capital One.

The post Capital One Small Business Growth Index Reveals Crucial Info About Small Business Environment appeared first on SmallBizTechnology.

Fintech Startups

Financial technology or fintech, in short, is the cumulus of new technologies and innovative services that aim to improve or even replace traditional financial services. From online payment solutions to cryptocurrency wallets or personal finance management, these companies are delivering innovative solutions to individual customers as well as corporations.

Fintech companies in Hong Kong are an example of how a city that has long been a business and financial hub in Asia had adopted the new technology and innovative solutions. The Special Administrative Region is an attractive location to base a fintech company because of the easy company set-up procedure and the low taxes on corporate profits. Other locations that offer advantages for investors and a welcoming business climate include the Netherlands, where opening a Dutch fintech company has the advantage of easily accessing the surrounding European markets.

What to Focus on When Starting a Fintech Company

Here are some points investors can take into consideration when starting a fintech business:

• Specific regulations: the financial regulators in Thailand will adopt a different approach than those from the Netherlands for example; understanding how the law treats companies that offer financial services and whether or not they are regulated by the local financial supervisory authorities is important.
• The team: offering quality and reliable financial services is possible with the help of a professional team; technological and business experience are two important skills to look for when hiring employees for a fintech company in Thailand or any other country.
• The product: the service or product offered by the company will need to be one that answers a need; the market is already populated by companies that offer solutions for personal finance, payments, and insurance; creating a new platform or delivering an improved solution is important for fintech startups regardless of the fact that they are incorporated in an EU country like Ireland or elsewhere.
• Funding: opening a fintech company in Germany, for example, will involve several costs, from the minimum share capital for a GmbH to the ones needed to rent and equip office space; funding for companies in the fintech sector is high and investors can submit their project to a crowdfunding platform.

Please note that the details provided in this article are informative but do not substitute professional company incorporation services. Investors who wish to know more about how to start a fintech company or those who need specialized advice can reach out to a local company formation expert.

Published in Partnership with Bridgewest

The post How to Start a Fintech Company appeared first on SmallBizTechnology.

The merchant account can be used by both brick-and-mortar businesses and online businesses; depending on the country in which is set up, the merchant account may not be required for a brick-and-mortar company, but in the case of online stores, this is a necessary aspect, regardless of the jurisdiction, as the customers won’t be able to conclude cash payments.

For example, when setting up a merchant account in Singapore, the company will be able to accept credit and debit cards transactions from approximately 150 countries, one of the advantages being that the merchant account can process payments in well known global currencies, not only in the local currency. Other countries, such as Estonia, accept credit cards from more than 160 jurisdictions.

In other jurisdictions, such as Cyprus, the companies wishing to set up a merchant account that will accept international payments will need to select an international merchant account, especially designed for this purpose (the country provides several types of merchant accounts, depending on the specific activities of a company and the country in which it is incorporated).

If you have an online business in Ireland, another option to explore merchant accounts refers to mobile phone payments, which increased in popularity in the last years, due to the fact that payment itself is processed very fast. Its advantage is given by the flexibility obtained by the customer, who can conclude the purchase at any given time, from any location.

The main advantage of a merchant account is that the customers can conclude a certain purchase regardless of the daily schedule of your business, in safe conditions, as all merchant accounts have to provide a safe gateway payment software.

Besides these advantages, it is important to know that companies can benefit from a simple registration procedure, which requires only several documents, but this can vary depending on the country in which the merchant account is registered. Investors can also conclude this procedure through online applications, in certain investment jurisdictions.

Published in partnership with Bridgewest

The post The Advantages of Opening a Merchant Account. A Global Perspective. appeared first on SmallBizTechnology.

8. Leverage Technology to Automate Invoicing and Payments

The post 8 Ways to Streamline Your Monthly Billing Process appeared first on SmallBizTechnology.

1.   StartUp – True to its name, Startup is a podcast centered on getting started in the small business world. Covering a wide array of topics related to small business ventures, this podcast really steps out of the box and addresses so many things in the process. Even if not every episode is something you can relate to, odds are that someone out there, probably many someones, are in the exact situation that is being described and could learn so much from this eclectic group. That’s what the podcast is all about – helping people from all walks of life address the various issues that could come up during the course of getting a business up and running.  

Episode to try – Running a Family and a Business

2.   Entrepreneurs on Fire – John Lee Dumas, self-dubbed ‘JLD’, aims to get young people fired up to get their businesses started and to make them happy in their success. JLD works to inspire others to make their life follow their dreams. In the interviews for his podcast, JLD and his guests cover the main objective of going all in with your ideas. The common denominator among successful startups, to JLD, is going 100% into the new idea with every intention of being successful. JLD will explain how to work hard for what you get but to work smarter in the process as well.

Episode to try – Be Your Own CFO: Take Control of Your Personal Finances

3.   Office Hours with Spencer Rascoff – As a podcast that works like a roundtable discussion amongst several successful business leaders, Office Hours, seeks to address some of the toughest questions new businessmen and women will face early on when starting their business. Spencer sits down with some of the biggest leaders in the business industry to discuss what it takes to get to the levels of success they have. Through their own experiences, these CEOS and business owners provide crucial insight into the workings of a business and of being a great leader.  

Episode to try – Adena Friedman, President and CEO of Nasdaq

4.   This is Your Life – With the disclaimer that this podcast no longer has new episodes, we still love this one! They also have started up a new podcast which spins off of this called Lead to Win which dives into how to succeed in your new business along with some other great life advice! This is Your Life focuses on daily trials and tribulations associated with balancing getting a business off the ground along with your family and home life. Little did we realize that the day in and day out of your home life can greatly impact your financial standing with your business. Michael Hyatt and his podcast work to help you navigate this path and come out on top.

Episode to try – Banish the Guilt About Making Money

5.   Mixergy – This podcast was created by a group of individuals from all sorts of backgrounds to collectively help new entrepreneurs in and through any situation.  These people come from all walks of life, have various experiences in business, and collectively are able to provide insider knowledge about how to overcome various struggles and hardships along the way. These individuals are able to explore the depths of what is going on with a business to help you address what you need to work on for your own business. This group strives to get you to think like a successful business owner and to take charge of your dream by taking action first.

Episode to try – How to start a business during the most stressful period of your life (Writer’s Note: Because we ALL decide to do this, am I right?!)  

Can’t get enough of podcasts? Don’t miss this…

The post Top 5 Financial Podcasts for Small Biz Owners appeared first on SmallBizTechnology.

Visa has.

And, Visa has found that after a natural disaster, 40% of businesses that were affected by a disaster do not reopen immediately after a disaster. The impact of a natural disaster lasts, as 75% of business without a plan of action post-disaster actually fail three years after the disaster.  Creating a natural disaster plan is a necessity for businesses in hurricane zones, tornado alleys, and areas where fires are common. Visa surveyed small business owners to learn about the impact of natural disasters. The findings showed that businesses needed approximately $850,000 on average to rebuild their businesses after a natural disaster. With numbers like that, it is easy to see why so many never reopen.

As a response to these shocking statistics, Visa created a program called “The Visa Back to Business Project.” This program is designed for small businesses that see a loss of revenue after a natural disaster. Since nearly all businesses lose revenue after a natural disaster, this program could become a factor in re-establishing a way of life for not only businesses but their employees and those who frequent these establishments.

To help disaster-affected businesses, Visa shares their statuses in a database so consumers can support them. This support can come from anywhere in the country. Interested consumers simply search for a business here. Consumers can search for specific disasters, or they can choose a type of business to support. The current list includes businesses affected by floods, fires, snow storms, and severe storms. When possible, Visa includes the website of the affected business so consumers from all over the world can offer support.

It is appropriate that Visa launched this program during National Preparedness Month. With hurricane season in full force, it is a good idea for all businesses to take time to prepare for natural disasters. Whether your business is in an area that gets an excessive amount of snow or is prone to flooding, now is the perfect time to prepare for what could happen by creating a disaster plan. Hopefully, you will never have to use your plan, but there is nothing wrong with being prepared. No one expects a disaster will happen to them, but when it does they are grateful for having flood insurance, emergency procedures, or their data stored in a secure cloud server. It is better to be proactive and prepared than to try to follow through after a disaster. There are several tips for disaster preparation here.

Authored by: Kristen Bentley, Reporter, Smallbiztechnology.com

The post How Visa Helps Small Businesses Get Back to Business after a Disaster appeared first on SmallBizTechnology.

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Understanding Machine Learning

Machine learning enables computers to learn without human intervention. The computer acquires data and predicts outcomes without manual input. As machine learning gains more data and adapts to the past, its future predictions become more accurate.

In insurance, machine learning can act like an underwriter. As a novice underwriter, you need loads of data to make a decision. As you gain data and analyze outcomes over time, you become better at assessing risk, predicting losses and calculating premiums. Machine learning in insurance is a tool that will help the underwriter make decisions with more precision.

Optimization of Premium Dollars

In 2017, the insurance industry accounted for 3.1 percent of the U.S. Gross Domestic Product (GDP), contributing more than $600 billion to the economy. With so much at stake, optimizing premium is pivotal. With machine learning, insurance companies can analyze immense amounts of data to create the ideal premium for each consumer.

Think about your own personal auto insurance policy. There are many factors that impact your premium, including:

• Your car’s make, model and year
• The number of miles you drive
• Where you live
• Your history of accidents
• Your age
• The number of years you’ve had a driver’s license

Machine learning can collect this data on millions of drivers and use it to recognize patterns and assess risks, which helps insurers craft tailored premiums for each consumer.

Decreasing Premiums, Improving Combined Ratio

Insurance companies are always working to improve their “combined ratios.” While this term may sound like industry jargon, it simply compares the amount of an insurance company’s payouts and expenses to the amount they brought in via premiums. For instance, if a company with a combined ratio of 99 percent, it means they earn $1 in profit for every $100 in premium their customers pay. A combined ratio of over 100 percent means they lose money on each dollar of premium. The goal of machine learning in insurance is to offer customers competitive premiums, while simultaneously decreasing the loss and expense ratios.

The Impact on the Consumer

To insurance companies, data is golden. The more data they’re able to collect, the more accurately they can assess your risk, and thus, your policy premium. What’s more, machine learning can help implement these changes with a lower personnel cost, which could allow them to offer customers a lower premium. So, if you have good driving habits, machine learning could mean a reduction in your premium. If you are high risk, insurance companies may be more likely to increase your premium charge, as they’ll be able to more accurately assess the risk exposure you present.

Future Technology

As insurance providers gain more data, so do consumers. Technology like augmented reality may soon fill up the windshield of a consumer’s vehicle. Powering the consumer with information overlays may help drivers become more aware of their own driving habits, which could reduce the risk of accidents. Say you are a driver that, based on historical data, tends to push the speed limit a bit. An augmented reality overlay could alert you to current speed limits, encouraging you to lay off the gas a bit. The combination of this data in front of you, as well as the stream of data being fed back and forth between your car and your insurance carrier, could lead to fewer accidents, more accurate pricing and potentially lower premiums, although if you happen to be in an accident, then you shouldn’t just stick with your insurance, you should seek legal help from a car accident attorney. If the accident was minor, drivers may handle damages among themselves without involving insurance companies, police, or personal injury lawyers. You can navigate here for more about the personal injury attorney. A personal injury attorney will prepare and represent your case if it goes to court. If your case goes to court, you need to build a solid case. An experienced personal injury attorney will understand and obtain the information needed to best present your specific case. A personal lawyer, or a drunk driving lawyer, will file any legal motions and documents, and evaluate the defendant’s information and prepare any necessary cross-examination. You can visit his website for more information about the car accident lawyer.

Without an experienced legal team on your side, the court process can be overwhelming and may not be resolved in your favor. Ron Bell Personal Injury Lawyers Albuquerque practice personal injury law – Primarily focusing on injuries suffered in auto accidents. We take great pride in providing our clients with the best service we can, utilizing our team of professionals to obtain the maximum results possible for their cases. Let our decades of experience get you the results your family needs. The biggest issue with a car accident in Albuquerque is usually ‘who pays for the damages’.yer. But this isn’t the best idea, for several reasons. While the responsible driver may agree to pay for damages on the day of the accident, they may see the repair bills and decide it’s too high. Often people don’t realize how expensive it can be to repair an automobile after an auto accident. At this point, time has passed and your insurance company will have difficulty piecing together the evidence. It can become a ‘blame game’ and cost you more money than if it was handled correctly from the beginning. The best advice is to always report all accidents to your insurance company within 24 hours. A personal injury attorney will evaluate your particular case and work to obtain the best result for your needs. A personal injury attorney will maintain objectivity and work with you to find the best resolution to your case. A qualified injury lawyer will be able to determine, based on your specific circumstances, whether your claim is best resolved through mediation- saving you time and money. Additionally, if your claim goes to court an experienced injury lawyer will handle your claim effectively to get the best possible jury verdict.

Machine learning is a powerful movement in the insurance industry. Thanks to real-time smartphone applications that monitor driving habits, insurers are putting the power to save money in all of our hands. As data expands, so do the opportunities machine learning presents. This technology is likely to change the insurance industry, and consumers will see the impact where it matters most — in their pocketbooks.

Authored by: Haden Kirkpatrick

Haden Kirkpatrick is the head of marketing strategy and innovation at Esurance. Haden is constantly thinking about how IoT, blockchain and machine learning, and he shares his predictions by writing about how these technologies will impact the car insurance industry. Learn more about Esurance’s car insurance policies here.

The post How Machine Learning Will Affect What You Pay for Insurance appeared first on SmallBizTechnology.

Unlike larger companies with more resources and full-fledged HR departments, small companies typically stop looking into any additional employee benefits after health insurance is set up. There are many misconceptions, as well as very valid reasons, that this is the case: perceived high costs, administrative burden, and lack of employee interest are issues that are typically exacerbated at smaller companies.

However, given recent advances in technology and financial literacy, consumers are demanding more out of financial institutions, in terms of accountability, accessible pricing, and ease of use. This means 401(k)s have become a more realistic and appealing option, even for very small businesses. They’re now able to catch up to larger companies and take advantage of all of the benefits of this type of plan just as effectively – it’s been long overdue!

With year-end planning just around the corner, here are some things to consider when thinking about implementing a 401(k):

Tax Benefits for Employers and Employees

This is the #1 reason to set up a 401(k) as soon as you can. Every year you delay setting up a 401(k), you’re missing out on investment gains and tax savings. These are oft under-appreciated, huge financial upsides for both business owners and their employees.

1. Long-term individual tax benefits: Employees (owners included!) are able to invest their money into the 401(k) before taxes are taken out of their paychecks. This means when they retire and start withdrawing money from their 401(k)s to live on, they will be taxed at their income tax rate at the time of retiring, as opposed to their current (typically, much higher) income tax rate.
2. Short-term individual tax benefits: Each year, any pre-tax contributions made to a 401(k) account can be deducted from their taxable income, which means that they will pay less in income tax. Employers can also receive corporate tax deductions for contributions to their employee accounts and even receive a flat tax credit (up to $500/year) for the first three years of a new plan.

No HR Department Needed

Even if you’re not a huge corporation with an HR department focused on taking care of benefits and payroll, a 401(k) is still a realistic possibility. Historically, large financial institutions have entirely owned the 401(k) market and were mostly interested in creating products and services (and therefore, pricing structures) focused on large companies with in-house resources because they were more profitable to work with.

However, in recent years several new 401(k) startups and even small business 401(k) offerings from large financial institutions have sprouted specifically focused on creating 401(k) options to suit small businesses. At Human Interest, we’ve designed our 401(k) product and services to suit our small business clients. We work exclusively with small businesses across all industries and understand that they have very different needs and considerations compared to those of a large company.

Everything that touches 401(k)s – payroll, compliance, employee management, and more – needs to be adjusted to suit the reality of small business operations and budgets.

The Lower Fees Trend

The intricacies of 401(k)s aren’t common knowledge, and unlike a concrete “product” like a hamburger, it’s often fairly complicated to understand just how much a 401(k) should cost and who is responsible for paying. Some of this is intentional – unfortunately, it’s all too common that the financial industry is able to profit off of keeping their clients in the dark and using fine print to their advantage. Luckily, on all fronts, 401(k) fees are decreasing due to consumer demand for greater transparency and accountability.

To put 401(k) costs into perspective, the closest comparison is health insurance, in that it’s an employer-sponsored benefit that is paid for by both employers and employees and there is some degree of ongoing costs in the form of premiums, co-pays, and differently priced plans to choose from. On that same note, when you’re shopping for a 401(k), make sure you understand exactly who is paying for what features and services you will be receiving in return. In particular, find out if the 401(k) provider serves as a fiduciary – if not, it means that they’re allowed to receive kickbacks from the investments they recommend, which means your employees may be stuck paying high investment fees.

Interestingly enough, many people are surprised to learn that a 401(k) for an entire small business can cost less than what is paid for a single employee’s health insurance.

Simply put, a 401(k) is a thoughtful, strategic benefit that has a proven impact on recruitment and retention and provides a concrete financial benefit to employers and employees. Most importantly, it’s no longer only reserved for large businesses. Thanks to the growing number of tech-enabled products, it’s no longer a burden for employers, even those without an HR dept, to offer employees a robust 401(k) benefit. While you may have explored this option in the past or had it on your to-do list for several years, recent trends make it more realistic than ever for small businesses to offer a high-quality 401(k) and ensure their employees are able to plan for their financial futures.

Authored by Roger Lee, CEO and Co-founder of Human Interest

Roger Lee is the CEO and Co-founder of Human Interest (formerly known as Captain401). Based in San Francisco, Human Interest helps small businesses all over the country offer 401(k)s to their employees. Roger and his team focus on increasing 401(k) access through a high-quality, affordable solution that lowers the administrative burden for businesses and prioritizes employee experience and education. He was formerly a co-founder at Thunder and has a degree in Applied Mathematics from Harvard University.

The post 401(k) for Small Businesses: It May Be Easier Than You Think appeared first on SmallBizTechnology.

Double-entry Accounting (Just in case you are wondering what it is!)

Double-entry accounting is a standard industry practice that balances cash transactions across two or more accounts: a reduction in one account (Expense) will balance an increase in another. Thus, the accounts are always kept balanced. If you want a deep dive into this practice, read about it here. For those looking for assistance in accounting then consider contacting these accounting firms in chicago.

Approachable Accounting: The Customer-Centric Approach

FreshBooks has introduced a standard industrial double-entry accounting for such business owners who are great at running the business operations but not necessarily great at accounting. Although they have introduced a standard industry practice, they have turned it more towards the business owner & adhered to their trademark simplistic & no-frills approach. Therefore, they have branded their platform as “Approachable Accounting” using a cloud accounting software system.

FreshBooks, unlike other cloud-based accounting software solutions, revolves around the business owner & makes the process “easy-to-understand” & “easy-to-practice” for him/her. So, FreshBooks Platform has stripped off the conventionally used heavy, complex accounting algorithms and focused on integrating a user-friendly simplistic outlook. FreshBooks approachable accounting is an easy, simple, seamless & non-intimidating process that helps you in recording not only your day-to-day transactions, invoices & costs but also in keeping an account of liabilities and assets. FreshBooks offers a warm & inviting interface that allows you to integrate all your finance related data seamlessly into the system without having to bother about the complex accounting practices. At the back-end, FreshBooks algorithms are tirelessly at work, doing all the essential, complex calculations for you, so that you are on top of all your financials including tax time, invoices, cash transactions & beyond.

The “Approachable Accounting” Features

1. The Core Accounting Features –The Invoice-based Transactions

The following 3 double-entry accounting features make up the backbone of FreshBook’s accounting engine & maintain all the records for you while you remain free to on running your business:

• The Chart of Accounts: This is the list of accounts your business has acquired over time. The Chart of Accounts holds key to all the information regarding the assets- liabilities, equity, revenue and expenses pertaining to each of these accounts. This helps you with the day-to-day maintaining of your business accounts so that you can pull out the data whenever you need to. This is a search-friendly list and information about any account can be filtered out according to date You can get the step-by-step Guide here.
• The Trial Balance: This feature handles all the transactions in your business, the in-flow & outflow of funds, debit, credit etc. to ensure that your accounts are balanced. Any discrepancy is highlighted as an error. This is a very important feature for tracking your financial settlements. A detailed Guide on how to use Trial Balance is right here.
• General Ledger (GL): As you might have already guessed, this Feature is all about providing a bird’s eye view on your entire gamut of business transactions that help you prepare your financial statement. The accounts that are maintained by the GL are assets (fixed & current), liabilities, revenue, expenses, gains & losses. With GL’s help, not only can you prepare the Accounts Report, but also export or print it for further discussions. This is also a search-friendly system & helps you to filter out the records according to a date Read about how to use it here.

2. The “Other” Revenue Tracking Features – Non-Invoice Transactions

This feature helps you to keep your books on the non-invoice-based transactions that often come in drips & make it painful to account for. This revenue, of course, cannot be neglected since, in due time, these add up to become a sizeable portion of your income. This FreshBook feature makes it super-easy to account for the “Other Revenue” & help keep your books clean, particularly for tax purposes. The data entries are color-coded so that it becomes easier for you to investigate the data and track the source. Look here. 

So, if you are a small business owner who runs the show by himself/herself, managing all the verticals of a business across marketing, operations & accounting, FreshBooks Platform is surely for you. You might agree that when you are managing the entire show, you tend to neglect that vertical of your business that appears to be the most unappealing. Many times, ACCOUNTING becomes THAT vertical & so the regular book-keeping goes for a toss. The best option is to delegate it to an expert who is a pro at accounting & does it for you, of course at a price. The next best option is to delegate it to “FreshBooks” & get your accounting done at the backdrop while you focus more on the Business Operations, the part that you like doing most.

Authored by: Paromita Ghosh, reporter, Smallbiztechnology.com

The post Approachable Accounting: FreshBook’s New Take on Small Business Accounting appeared first on SmallBizTechnology.

Earlier this month, CNBC, First in Business Worldwide, and SurveyMonkey, a global provider of survey software products, announced the results of their quarterly CNBC/SurveyMonkey Small Business Survey in which they aim to measure the vitality of the American economy as well as the view from Main Street on jobs, taxes and other hot topics. Each quarter, CNBC and SurveyMonkey poll over 2,000 small business owners. In addition to measuring small business confidence nationwide, the large sample size gives CNBC the power to uncover trends by geographic region and among specific small business cohorts. This survey provides a crucial window into the response of small business owners to the new tariffs and tax laws.

According to the 2018 Quarter 3 survey, 58% of small business owners surveyed say overall business conditions are good, up from 53% in Q2, and up 39% from the third quarter of 2017. While the past year has seen conditions improve for small businesses, many have concerns about how the changing tariffs and tax laws will affect them going forward.

First in January 2018, and more recently in June, Trump  increased tariffs on many foreign goods such as solar panels, steel, and aluminum, which protected industries in those arenas but also drove up the prices of goods for American consumers and businesses in other arenas. As a result of these tariffs, China, the European Union, and Canada, among others, have implemented retaliatory tariffs. While these tariffs were put in place to protect domestic industries such as the American steel industry, which receives a boost from the fact that it is now cheaper to buy from them than foreign options, they actually do more harm to smaller, local businesses than good.

A secondary, unintended result of these tariffs is a ripple effect of increased costs to businesses that use those products in making their goods. For example, as the cost of steel increases due to the 25% tariff imposed by the Trump administration in June 2018, American manufacturers that use steel in their products must raise prices to accommodate for increased expenses; small businesses that rely on products made by manufacturers who use steel in their machinery must also accommodate for the increase in expenses and raise prices. The tariffs affect small businesses in particular because unlike major corporations, small businesses are often unable to absorb the additional costs without lowering wages, firing workers, or else risk increasing prices above a market value set by larger businesses who can afford to keep prices lower.

Additionally, the retaliatory tariffs impose added barriers to international expansion of small businesses. These retaliatory tariffs mean that American exports will be taxed in foreign countries, driving up their prices abroad, and making otherwise strong American export companies less competitive in the foreign market.

While most small business owners are unsure of how the Trump administration’s new tariffs will affect them, 34% of small business owners (65% of Democrats and 13% of Republicans) predict that the tariffs will hurt business. Despite the general sense of uncertainty, 51% of those polled (including 50% of Republicans) believe free trade agreements help small businesses. Small business owners are increasingly divided along party lines when it comes to their views on trade: 34% of Republican small business owners expect these changes in trade will have a positive effect on their business (up from 29% a year ago), while 58% of Democrats expect they will have a negative effect on their business (up from 31% a year ago). Of all individuals polled, 8% of small business owners say they’ve already made changes, and 21% are planning to make changes, as a result of tariffs.

Another major change to American legislation that will affect small businesses is the new Tax Cuts and Jobs Act, which was signed in December. While the Trump administration claims that these tax laws will stimulate the American economy, Democrats argue that they favor major corporations over small businesses due to the fact that large corporations have more expenses to deduct and are more likely to be able to afford the hobby-related expenses that are no longer tax-deductible. However, small business owners are largely optimistic. The new tax laws lower individual tax rates, increase the business expense tax deduction limit from $500,000 to $1 million per year, and allow companies filing as pass-through entities to deduct an additional 20 percent. In response to these tax deductions, 33% of small business owners plan to increase headcount over the next 12 months, up from 31% in Q2 and 26% in Q3 2017.

Although these tax laws appear to be putting more money in the pockets of small business owners, there is a darker side to the Tax Cuts and Jobs Act that may increase financial difficulties for the smallest of businesses who deduct few business expenses so will not make use of the increased limit, but rely on the ability to deduct certain expenses. The new tax laws no longer allow for deductions of certain business expenses such as travel cost and membership dues, which may prove to be a problem for many. Because small businesses may struggle to afford those expenses if they are not deductible while larger companies can, the most qualified employees are leaving small businesses to work at larger firms, and small businesses are struggling to attract talent and fill positions. 16% of small business owners polled (but 41% of small businesses with 50 employees or more) have had open positions for at least three months. 45% of small-business owners believe the candidates applying for their open jobs are not properly trained, and 28% of small business owners believe they are unable to fill skilled positions because large corporations are able to offer better pay and benefits.

Ultimately, 22% of all respondents believe the most important issue in the upcoming midterm elections is taxes/spending, followed by the cost of healthcare (16%) and the wealth gap (14%). Small business confidence is at a record high, but small business owners are cautiously optimistic. While many respondents expressed strong opinion for or against the new tariffs and tax laws, the vast majority remained uncertain. The overall takeaway is that we as a society need to make a more active effort to educate small business owners on how changing policies will affect their businesses so they can best prepare for what lies ahead.

The post CNBC AND SURVEYMONKEY RELEASE LATEST QUARTERLY SMALL BUSINESS SURVEY appeared first on SmallBizTechnology.

Mike Trabold director of compliance risk for Paychex, Inc.  says that It’s not all bad news for business owners. While small businesses with an e-commerce presence may now be looking at a significant incremental compliance obligation, smaller brick-and-mortar operations who have always been required to collect sales tax are hailing the decision as providing long-overdue competitive equity.

When tax season comes around, you roll your eyes and wonder how difficult it will be to figure it out this time. Tax preparation has come a long way and there are many options to help you out and make your taxes a successful experience every time. There are online preparation services through professional offices. There are software programs that guide you through the process. There are private offices that offer the services of CPAs or tax attorneys. And there are franchise tax preparers that churn your taxes for small business through their proven systems. Tax preparation service is available in all shapes and forms don’t go without the help you need.

Professional CCH Integrator have experience and credentials to handle just about any tax situation. If your taxes are simple you can expect to have quick turn around and a fair price. Although these companies do a great job, they may cost more and you may not need their high level of experience for your simple taxes.

It stands tо reason, ѕоmеwhеrе іn thе country іѕ thе Worst Tax preparer. Thе bad news іѕ уоu mау hаvе аlrеаdу booked уоur appointment wіth hіm. Preparing taxes іѕ a complex activity. Sо complex thаt mаnу оf uѕ simply throw іn thе towel, pack uр оur receipts, аnd head fоr thе nearest tax office. Whеn уоu arrive аt thе office, уоu fully expect оur tax preparer tо bе highly competent аnd completely vested іn getting уоu thе best deal іn town.

Tax preparers hаvе a wide range оf experience frоm nоnе tо grizzled veteran. Thеу аlѕо span thе continuum frоm ethical tо completely fraudulent. Thе mоrе complex уоur return, thе mоrе уоu need a veteran preparer. And іf уоur preparer tells уоu аbоut thіѕ great deduction thаt уоu саn tаkе аnd іt sounds suspicious tо уоu, listen tо уоur intuition. It’s thе difference bеtwееn paying a little bit nоw оr paying a whоlе lot later.But for people who already have tax problems or anticipate some problems, hiring this level of professional Tax preparation service could be the best thing you have ever done.

The Piloto Asia tax preparation service is another great option for getting your taxes ready. They have proven methods of handling your taxes that may be just what you need to complete yours. Franchises are usually trustworthy and have a history behind them no matter how long the franchise has been there. They often have CPAs as employees that can help with tax preparation that is more complicated or to deal with potential problems. These systems are mostly for straightforward taxes, however, and more professional help may be required if your taxes are complicated.

Some CPAs and tax attorneys work over the internet and many are a less expensive option to getting the best professional help there is. If you are not in the area where the office is, you can conduct all your business over the internet or the phone. This is a very convenient option for those who can’t get out or live in rural areas. The tax preparation service is available to everyone that can get online. In addition to these options there is also software for tax preparation. These programs can guide you through a simple tax return with minimal mistakes and quick turnaround time.

eCommerce expert, John Lawson had this to say about the ruling:

The way this case was positioned, it was hard for the Supreme Court to rule anything else. SOUTH DAKOTA v. WAYFAIR, INC., is not representative of all the small and medium businesses that this ruling will effect. The home goods e-retailer generated 4.72 billion U.S. dollars in revenues in 2017, up from 3.38 billion U.S. dollars in the preceding year.  That is one huge jump from the mom and pop e-tailer making $100,000 in annual sales.

The real issue is that for a multi-billion company to ramp up the collection of taxes and fillings vs. smaller entities leave a big disadvantage and liability to the smaller retailer. There are now 9,998 different sales tax jurisdictions in the United States…that is a heavy burden and it needs to be rectified for smaller entities. 

Mike Trabold feels that there are also some upsides for online retailers. He says:

• You have some time. It takes time for states to react to such rulings and make the necessary changes to enable the collection of a new tax. While some states have been readying their processes in anticipation of the ruling, most will have work to do before enacting any major changes. In the meantime, it’s wise to get in front of this by locating the tools you need going forward.
• Some states already have, or will likely enact, thresholds above which the tax will be triggered. Thus, if your activity in a particular locale is below an ordained dollar or transaction level, you may be exempt.
• The Streamlined Sales Tax Agreement. Twenty-four states currently participate in this agreement, which in addition to standardizing some of the supporting tax calculation and submission protocols also provides for free sales tax compliance software for retailers under certain circumstances.

Though the Supreme Court’s decision has been made, there are areas that small online retailers will still need to keep an eye on:

• Some states may be tempted to look to collect these taxes not only going forward, but retroactively.
• Federal standardization. Policy makers grasp how challenging it will be to stay on top of the multitude of state and local sales tax rules. As such, the Supreme Court ruling may prompt Congress to finally enact a standardized federal policy – though this may be politically unlikely for now.
• Potential impact on general business taxes. Some states don’t levy income taxes on businesses without a brick-and-mortar location within their borders. This decision may spur these states to reconsider that stance given the opportunity for incremental revenue.

Though some effects of this ruling are unknown at this time, business owners can take steps to prepare. First, you should assess impact, evaluating where your main out-of-state sales come from. This will give you a sense of where you may want to focus your compliance attention. Next, find tools and resources to help ease the transition. Look for an established software solutions provider that provides a comprehensive, easy to use, reasonably priced product and which has the resources needed to stay abreast of the wide, complex, fluid array of state and local sales tax requirements. Your CPA will also be able to provide guidance aligned with your specific situation.

The post How Will The Supreme Court Online Tax Ruling Affect Your Business? Two Experts Way In. appeared first on SmallBizTechnology.

But with changing times, they also have to include few technological investments into their list. Unless and until a business owner can embrace technology, he will never be able to set ahead of his competitors. So what are technological solutions that a business owner should invest in? Here are a few technological investments to take into account.

#1: Internal platform for chat

Did you know that in an age where the whole world is connected through chat apps, there are still several companies which still depend on email for communications within the company? Using HipChat or Skype as an internal platform for communication can increase both the accountability and speed of employees. The employees also get a better chance to bond with each other in a better manner.

#2: Tool for managing passwords

Being a business owner, you will have access to multiple accounts, whether email or social media or in any other account. Since all the accounts are password protected, you can use a tool for managing online passwords and all other credentials. LastPass is one such tool which can allow the company to centralize all vital data and work in an efficient manner.

#3: Project management software

The team of each entrepreneur should comprise of user-friendly, flexible yet powerful project management software based on the cloud. With such a software, you could nurture and preserve the ideas while offering a platform for perfect collaboration. You can initiate discussion threads around worthy ideas and whenever an idea matures to an extent where it becomes a project, you can start adding resources to it and creating a timeline for the project.

#4: Video equipment

In today’s digital marketplace, video has become one of those increasingly important marketing assets which an entrepreneur should definitely invest in. Instead of hiring costly videographers and paying them, you can choose to empower your team to design good quality video content by giving them portable video equipment. With just very little investment, you would notice a difference in the video quality that is made with a high-quality camera instead of a webcam.

#5: Stress management technology

It is yet to be scientifically proved that negative ions reduce stress. But, one thing which is well-proven is the positive results of yoga. How about sending an app gift card to the employees like, Pocket Yoga? Yoga gives employees an opportunity to rejuvenate themselves at the office, the gift voucher software for small business if you want to drive your gift card sales forward, talk to us today about our gift voucher management system and let us help you to generate more sales for your business, and manage your customer gift certificates with ease. It’s also one of the best high-tech ways to make encourage employee’s to keep track of their health. This will not only promote health awareness but will also reduce the number of sick leaves of the employees. Doesn’t that seem to be a good idea?

Unlike other advertise products of this group at https://www.pharmacybc.com/xanax-alprazolam/, Xanax really acts effectively. You can just a pill (or one a half) before a stressful situation and everything’s going to be ok.

Now that you have a clear list of the technological investments that you should make. How many have you invested in? If you haven’t invested in any of them, make sure you do so. Just try your best to invest in the things of premium quality so that there are reduced glitches and errors.

This post published in partnership with iSelect.com

The post 5 Technological Investments Every Entrepreneur Should Make appeared first on SmallBizTechnology.

While fewer consumers are writing checks at the grocery store or gas station, small business owners continue to depend on checks. In fact, the latest data from the Association for Financial Professionals (AFP) shows that B2B payments by check increased between 2013 and 2016.

But as times have changed, evolving technology has given small business owners faster, more efficient tools – consider the way that e-mail has revolutionized communication for entrepreneurs. Why shouldn’t sending checks be just as efficient?

Here are six reasons why small businesses are stepping away from the mailbox and moving toward safer, easier, cheaper and greener alternatives.

Paper opens the door to fraud

According to a 2018 survey conducted by AFP, fraud attacks against payment systems continue to persist. Vulnerability to fraud increases with the number of times a payment is touched. A mailed check can be touched by as many as eight people during its lifecycle. Fraud can also occur when the same person is responsible for approving and writing the checks. There’s just not enough control to ensure everything is above board.

To protect against fraud, small businesses want more secure payment options that don’t require sensitive information from the payee, have limited touchpoints and offer multiple layers of control. Not all digital payments, however, are created equally; for example, many common e-payment services require the sharing of bank data, which can increase the risk of fraud unlike Smart Payables Outsource Payment Processing decrease the risk of check fraud with MICR and laser check security.

Paper takes patience

Paper checks are slow, especially when combined with snail mail. It doesn’t take much time to put a check in the mailbox, but writing the check, getting it signed and waiting for it to reach its destination can take a while. Checks can be lost or compromised in transit, and your account information can end up in the wrong hands.

Paper slows down all processes it touches. Entrepreneurial businesses prefer direct, timely delivery to prevent checks from getting lost in the mail.

Paper’s cash flow conundrum

When the check is in the mail, funds are trapped in transit for an average of two days. If you’re away from your office or store and need to make a payment on the spot, you’ll have to expedite it and pay a hefty courier charge.

Small, growing businesses want a flexible payment option that gives them control over their funds and the speed to time disbursements to the last possible second. For fast growth companies, cash flow is king!

The hidden fees of paper

If your company pays by mailing checks, you may be paying more than you expect. Bank of America estimates the cost of issuing a paper check can range anywhere from $4 to $20, based on the price of the check and shipping, plus the time employees spend writing, mailing, collecting and reconciling the check. The cost of postage alone can add up to a good chunk of change. According to Bill.com, businesses spend $235 on postage to mail 500 checks.

To counter high overhead costs, businesses are looking for a payment solution that eliminates the added expense of envelopes and other supplies needed to send checks.

Paperless payment solutions drive efficiency

From online reservations to using workflow apps, businesses are taking steps to make their operations more efficient. They are embracing new technology, connecting with tech-savvy consumers, delivering a superior customer experience and making sales.

To keep the momentum going, they need a payment solution that retains the wide acceptance of a check, offers digital speed and security and the simultaneous delivery of remittance information, but does not require businesses to modify systems and processes. One such solution is Deluxe eChecks.

With eChecks, payers send payees notification emails with links to secure sites housing their checks and remittance information. Payees access and print checks on their printers, and deposit them at their financial institutions like any other paper check. No sensitive information is required from the payee and the transaction takes place at the speed of email.

Author

By Vijay Balakrishnan, Vice President of ePayments for Deluxe Corporation

The post Digital Checks Speed Payments and Boost Efficiency appeared first on SmallBizTechnology.

So why risk it?

In this article, we’ve listed down four main reasons why your business should start accepting more than just cash payments.

1. Your customers have preferences. Listen to them.

Numerous studies have shown that shoppers prefer using credit cards over cash. A consumer survey by FICO revealed that 83% of consumers aged 25-34 years old use credit cards on a regular basis. And 77% of them are likely to continue using credit cards in the next five years.

This means that more than 3 out of 4 of the age group with the highest purchasing power are likely to try and use their card at your store. Most credit cards offer cash back or flight miles, so it’s not surprising that people want to take advantage of these rewards.

With the credit card processing software available these days, it’s actually easy to provide consumers with the option to use their credit or debit cards. You’ll have a card reader in the palm of your hand for a quick swipe after a purchase. Your customers will be in and out in no time, and with no hassle at all. Some credit card processing software even have inventory tracking built in — which means your customers will never come in wanting something, only to for you to find that it’s out of stock.

2. You can help ease the burden of ballooning ATM fees.

Though it’s not much effort to make a trip to a nearby ATM to withdraw cash before buying something, the recent rise in ATM fees may just cancel out that ease.

According a recent BankRate survey, out-of-network ATM withdrawals recently hit a record high of $4.69 on average per transaction. That’s almost $15 dollars a week if you make three separate withdrawals.

Having alternative payment options will cater to your customers who don’t feel comfortable carrying large sums of cash in their wallets. Put their minds at ease by showing them that you’re open to whatever mode of payment they prefer.

3. Consumers like options. Provide them.

Though cash is still widely used, it is no longer the primary mode of payment across the United States. According to Gallup News, the percentage of Americans who use cash to make most of their purchases dropped by almost 10% last year compared to five years ago. Plus, 12% of Americans stated that they don’t use cash at all for any of their purchases.

Being able to accommodate those who still use cash, as well as those who are moving away from it, will help both the consumers and your business. Have the means to let your customers use their cards if cash isn’t readily available, and vice versa.

4. Offer the luxury of convenience to your customers.

Not only can you increase the number of people who buy at your store by not being cash only, you should also consider opening an online store to reach an even wider audience. According to EuroITGroup, online shopping went up by 45% last year. Statistics from BigCommerce also reveal that 51% of Americans prefer shopping online, which makes online shopping just as popular now as purchasing from a physical store.

More and more people are embracing online shopping. The idea of being able to get what they want without leaving the comfort of their own home is becoming more appealing, especially with the rise of next day or even same day delivery.

Providing your customers with an easy way to acquire your products, proper security, and a good return policy, will make them feel safe and welcome.

Conclusion

With payment preferences varying across the board, you want to give your customers as many options as you can. Don’t isolate any of your customer base. Instead, broaden your business horizons and keep them coming back!

The post 4 Reasons Your Business Should Not Be Cash Only appeared first on SmallBizTechnology.

Why the Smart Small Business Goes Mobile

Mobile platforms are easing the burden for small business owners, making it easy to customize an app for your needs. The options are broad, ranging from safety inspection forms, cost estimators, work orders, property condition reports, time sheets, job tracking, permit applications, and more. 

The data captured is managed via a central cloud platform, freeing you up from worrying about the challenges of IT management and you can be up and running in as little as 24 hours with no IT help whatsoever.

How to Get Started

With the right approach, your business can benefit enormously from digital transformation. And it doesn’t have to be “all in” approach, take your time, be iterative. Here’s how:  

1. Digitize Commonly Used Paperwork

To begin, start with something that you use on a daily basis. Maybe it’s a work order, inspection or a timesheet. Many solutions, like Jotform’s automated approval process, have a drag and drop builder to customize forms, so it collects the data you want. Commonly used content can also be automatically digitized, which can save time in the long run. Users can simply take a photo of a work order, for example, and send it in. They’ll receive a digitized copy back, which can be reused time and again. Many digital transformation solutions also include thousands of pre-built templates that can be tailored for any business need. 

2. Think About the Information You Need and Want

One of the problems of today’s paper-based information capture is that it allows for mistakes and errors. Maybe a form gets lost on a worksite and never makes it back to the office or missing fields and unreadable text slows down important processes.

As you move to mobile data capture, make a list of what information is needed and what is wanted from that data.

• Are there certain fields that should be required?
• Do you need to add a timestamp or insert your own list of materials or pricing?
• What about a before and after image of work carried out to make it clearer to your customer what was repaired? Do you want to add mobile payments?

All these options and more can be easily added, without any programming knowledge.

3. Get It into Your Workforce Hands

Once you’ve got the mobile app you think you want, get a team to use it and confirm it meets your expectations. Require some modification? No problem. Any changes to the host will refresh the version on each team member’s mobile device. This period will also get your employees excited as they start to see how the app and overall digital transformation makes their life easier.

4. Be Open to Feedback

Once you’ve rolled out your app, encourage your employees to keep providing feedback. Unlike bespoke solutions or even proprietary off-the-shelf software, solutions like GoCanvas are easy to tailor to changing needs. Sometimes the issues might be hardware-based. For example, if a field technician encounters an issue using the smartphone touchscreen with their gloves on but has nowhere to put their gloves, a simple belt clip for their gloves can remedy the situation.

5. Take It to the Next Level

With the reassurance that it’s possible to easily digitize one piece of the workflow and see concrete results, you can extend these tools to other facets of your business.

There are literally thousands of use cases for the mobile digital capture solutions, so it is easy to expand into other workflows or use cases.

Taken one step further, mobile apps also make it easy to learn from your data. Who is performing best? What areas in your business are creating problems and inefficiencies? What does this mean for cash flow? How does this affect the way you allocate resources? Paper-based processes can hinder insights. But trusted data captured real-time in the field, can then be seamlessly analyzed for real-time insights into business performance and trends, so better decisions can be made.

Digital Transformation. Not So Scary!

Want to grow your business, engage better with customers, become more productive, make the workplace safer for employees or accelerate your cash flow? These and many more are high on the mind of small businesses, local government contractors, and even large enterprises, who waste or miss out on millions of dollars every year. But they don’t have to. Identify the pain points that need your attention, find and/or tailor a mobile app and digital transformation solution to address it and see how easy it is to eliminate manual workflows and time-wasting, error-prone paper-based processes. You can be sure your competition is.

James Robins is Chief Marketing Officer of digital transformation platform GoCanvas. For more info, please visit: www.GoCanvas.com  

The post Save Money & Time: Streamline your Field-to-Office Workflows appeared first on SmallBizTechnology.

What many of us want to do is increase our profits and better support our families and communities.

Doing this is not always easy, but one of the ways smart business owners grow their businesses is by leveraging the power of technology to make smarter decisions, increase efficiencies, collaborate better and focus on serving their customers.

Intuit announced the released of a “mini-movie” which showcases and celebrates how business owners can ease their day to day responsibilities by overall smarter technology.

Check out the movie below or here and explore Intuit’s website to celebrate and provide solutions to growing businesses!

Providing finance related solutions has been a part of Intuit’s DNA for years. With the trifecta of Mint, TurboTax and QuickBooks – Intuit offers personal finance management, tax solutions and of course day to day business financial management.

This blog post has been published in partnership with Intuit.

See more coverage here.

The post Heartwarming Small Business Movie from Intuit Celebrates Small Biz Success appeared first on SmallBizTechnology.

SBA loans are the safest and most affordable debt financing solutions for small business owners. A small business is an unsecured and open-ended loan which can be easily obtained from any financial organization indulged in lending money by fulfilling a few formalities and submitting business related documentation such as your business plan, its growth potential and how you plan to make it successful. However, before you sign the personal loan contract, it’s important to know some vital facts related to it. When starting out, it can be quite overwhelming, so here are a few items to consider when obtaining a fix and flip loans for beginners. If the AiB is happy that the correct disclosure has been made, the procedure has been followed and enough creditors have acceded to the Trust Deed, she will record it in the Register of Insolvencies.

Applying for home credits could be repulsive, especially in case you are a first-time home buyer. There’s an impressive proportion of literature and liberal planning included. However simultaneously, it is advocated paying little heed to your effort. This sweeping agreement assistant will walk you through the route toward making sure about financing for your home and cause you to feel that applying for a home advance isn’t so frightful taking everything into account.

Home advances are very little not quite the same as the normal credits stretched out by contract advance organizations. They’ve financing costs, focuses, and charges. They can be looked at on the web, and they’ve regular patterns. The main genuine contrast is that, as a borrower with a not exactly excellent credit record, you may need to pay a marginally higher rate for this advance to nullify the home loan advance organization’s expanded hazard.

Some home credits are explicitly intended to assist you with financing basic home improvement ventures. By urging you to make enhancements to your home, the home loan credit organization helps increment the market estimation of your property. In any case, how does a home loan credit organization remain to pick up by broadening such an advance? Basic, it brings in cash through the extra premium that you pay for this advance.

Hence, it is imperative to set yourself up with data about home credits and look at the ideas of different home loan advance organizations to ensure you get the best arrangement. 

In case you’re intending to buy a home just because or renegotiate a current home loan in spite of an antagonistic record, you may do well to think about the ideas of the different home loan advance organizations before you acknowledge a home credit offer. 

These Loans Might Come With Precomputed Interest

Sometimes, the type of interest applicable on the business loans is precomputed interest in which the original payment schedule is used for calculating the interest regardless of the fact that how much you have actually paid on the loan. So, before you sign the loan contract, it’s important to check with your lender that what type of interest would be charged on the loan. This would give you more clarity about how much you would have to pay back to the lender.

Early Off Penalties

Another important point to check is whether you are allowed to pay the loan early or there’s a penalty for doing so. If you are planning to pay off the loan early then the scheduled time, then ensure that you read the fine print closely to ensure that no penalty is applied over it. Lot of companies like Simple Installments offer very competitive rates and flexible terms to pay off your loans early without penalities.

The Insurance On The Loan

Most of the banks or financial institutions often present a sales pitch for the additional insurance when you take the loan for protecting the loan in the event of any unexpected incident which impacts your ability to repay the loan. While insurance seems logical to take because you cannot predict the future of your business, but the premium rates and the insurance cost quoted by banks is much higher. As per bespokefinancial, if you want to take this insurance, its always wise to consult a reliable agent and find out if they are offering cheaper prices.

Check If There Are any Uncessary Complications

A loan should have quite a simple process. You take the money and pay it back to the bank in the form of monthly installments which are comprised of the principal amount and the applicable interest. But, if a loan provider company is offering you cash backs, payment holidays or other bonuses, then there’s certainly something wrong which you aren’t able to figure out. Avoid taking loan from the companies whose loan process is too good to be true. If there are some lucrative offers on the loan, then its a red flag and you should not move ahead with the deal.

Once you know about all these points, you are ready to sign your business loan contract. However, ensure that you have a good credit history and a high credit score because the a business loan application with bad credit history or unsecured personal loans bad credit instant decision can result in loan rejection.

The post What Do You Need To Know Before Signing Up A Small Business Loan? appeared first on SmallBizTechnology.

Contractors

A contractor is someone you hire for a specific length of time rather than on a permanent basis or for an unspecified period of time. While contractors are sometimes more expensive than workers in the short term, they come with the advantage of not requiring you to pay them if the work they do slows down or becomes unnecessary. Bringing ir35 contracting for important work projects lets you scale up expertise quickly and without the necessity of a long-term commitment to the employee that can become onerous in later days.

Rentals

Similar to hiring contractors, renting equipment that you will only need temporarily can cut long-term costs by keeping your physical space usage down and keeping capital from getting tied up in heavy machinery. Renting equipment for a project ensures that you have the tools you need for as long as you need them. Of course, in the modern cloud computing environment, increasing numbers of businesses are also outsourcing functions like IT, storage, and other technology issues. Doing so keeps your in-house IT trim and fit and helps businesses that are not primarily IT-driven avoid carrying too many expensive technologies and staffers.

Set Objectives

Growing businesses can too easily lose sight of where they need to be going. Setting a long-term goal is a great way to focus the company on a singular vision, but big-picture goals are often too lofty to guide day-to-day decisions. Instead, try setting up a group of medium-range goals to inform immediate progress. Try to focus on growing a specific product or enhancing one area of the business. If you want to get ambitious, you can set reasonable medium-range goals for each of your departments.

Watch the Customers

Every business in the world has one thing in common, and that is its ultimate dependence on the goodwill of its customers. Businesses deliver products or services to their customers, and these customers either like or dislike what they get. And those customers are often not shy about letting you know where they stand. Sending out customer satisfaction surveys is a reasonable way to gather information, but sending too many or soliciting them too intrusively can make you look pushy. Asking big customers if they have the time for a more personal talk about their experiences is a decent tactic. Moreover, make sure you have a clear route to receive and resolve any complaints.

Growth need not to be a scary thing. A well-prepared company will embrace growth and come out stronger on the other end. Just be sure you have a plan, and things should go seamlessly.

The post 4 Hacks to Manage Growth Like a Pro appeared first on SmallBizTechnology.

The good news is that it is easier to obtain financing for an established business than it is for startups. However, there are many stable companies that neglect the importance of additional funding and choose not to grow, either because they are satisfied with their current success or they don’t know how to invest the additional capital.

To help, below are six reasons why a successful company should get additional financing:

1. Expand Inventory

A growing business needs to expand inventory to keep up with increased demand from customers. If you have demand that is larger than your supply of inventory, you can use financing to purchase more inventory and meet that consumer demand. This helps reduce the risk of not fulfilling your customers’ needs and leaving money on the table.

It is also good to take advantage of the buying seasons, such as Thanksgiving and Christmas holidays, and a seasonal inventory expansion is sometimes necessary. Further, you can expand your inventory to increase your product lines. Offering various types of products and items that can cater to different kinds of customers is can be good for your business.

2. Invest in Marketing

Marketing sustains a business and helps a company increase its sales and customer retention. In fact, most successful companies invest in marketing and continue to do so regardless of size. From marketing campaigns, to social media advertising, to connecting with influencers, marketing can take your business to the next level.

You typically have to invest in marketing upfront in order to see a return later. This is why you need financing to help fund your marketing initiatives. It is an investment that can provide your business with long term benefits, which include strengthening your business reputation, increasing your customer base, and bettering your sales with existing customers.

3. Build Your Dream Team

Building your dream team takes a lot of effort and requires an upfront financial investment. However, you can take your business a long way if you are able hire the right people. A growing business needs individuals with different skillsets to sustain its progress, and this could be a lot of work to just put on a few individuals.

To build a winning team, you have to identify what skills your business needs, then find the right people with that skillset who share your passion and vision. This requires working capital for salary and wages as well as taxes and healthcare. Also, before an employee can become a productive member of the team, you have to train them. It is therefore a good idea to use financing to fund the initial hires since it requires upfront capital before you see a return.

4. Acquire New Equipment

Every growing business needs to invest in its productivity. This includes acquiring new assets, building new facilities, and updating technology. If your business uses equipment for its day-to-day operations, it is important to ensure that its up-to-date, efficient, and reliable. Outdated machinery may cause inefficiencies and cost you more money in the long run.

Your successful company will benefit if you invest more funds in acquiring new equipment with greater productivity. After all, new equipment encourages growth. While the amount of money needed to acquire new equipment may be significant, it will typically pay for itself over time. Often, a good way to acquire new equipment is by leasing it, financing it through a dealer, or using an equipment financing company.

5. Buy Commercial Real Estate

As your business grows, so does your need for a bigger space. If you are leasing a property for your business, it’s about time to consider buying your own commercial property. If you plan to stay in the same location for more than 7 years, investing in your own commercial real estate might be a better option than leasing.

The money that you spend for a lease is an expense with no chance of a return on investment. However, when you buy your own property, you can pay down your company’s equity and then either sell the property or rent it out later. If you decide to sell, you will recoup your initial investment and possibly earn a return that increases your company’s cash flow, or it can serve as an additional income if you lease it out.

6. Refinance Business Debt

Additional financing is also important if you have existing business loans that you want to consolidate or refinance. If you are looking to increase your company’s growth, refinancing business loans is a critical step, especially when you’re struggling with your monthly payments. A refinance is a good way to help you get better loan terms.

When finding a lender to refinance your existing business loans, make sure that you compare their rates and terms and choose the one that will work to your company’s advantage. Do your research and read about in-depth comparisons for different lenders. Be wary about every small detail, especially when it comes to qualification requirements, interest rates and costs, repayment terms, and how long it takes to fund the loan.

Bottom Line

A successful and growing business needs financing to funds its growth. Additional working capital is necessary for companies that are planning to expand their business operations. You should not let growth opportunities come to pass just because you think your company is already successful and stable enough.

The post 6 Reasons To Get Additional Financing For Your Successful Business appeared first on SmallBizTechnology.

For entrepreneur seeking loans, an SBA loan sounds appealing. The SBA, or the Small Business Administration, is a taxpayer-funded, government-run center to assist, develop and grow small businesses nationwide. The SBA offers a range of loans for small business owners. But is taking out an SBA loan the best idea for your startup?

SBA Loan Requirements

The SBA itself does not offer loans. Rather, it partners with banks, credit unions, community development organizations and similar groups to offer loans. The difference between SBA loans and traditional small business loans offered through the same lender is that with SBA loans, the SBA guarantees part of the repayment. This takes some of the burden off of the lender and encourages them to take more risks with the entrepreneurs seeking their help.

Time to Take Out a Business Loan. Once you have implemented these tips and found an option you like, you should research the business loan requirements and finally apply. Good luck, and don’t let bad credit stop you from starting your business.

There are many types of SBA loans, each with their own requirements. In general, SBA loans require the following:

1. Personal background check: The lender will most likely conduct a personal background check, even if you own a corporation. This is to ensure that there is nothing in your personal history that warns them you won’t repay the loan or act irresponsibly with the money. Background checks include where you have lived, other names you may have used, criminal background checks, education record, etc.
2. Resume: Some lenders will request a copy of your resume. They may verify previous employment.
3. Business plan: All lenders require a formal, written business plan before they’ll even consider your loan request. They want to know the details of what they are potentially investing in, so have your business plan, including estimated budget, prepared before applying for a loan.
4. Credit report: Lenders will check your personal credit history, so it’s a good idea to run your own credit history report before meeting with the loan officer.
5. Business credit report: Businesses, like people, have a credit history. Banks will check into your business’ credit history before considering SBA loans, if your business has at least some track record.
6. Income tax returns: You’ll be required to submit both personal and business tax returns for the past three years before applying for an SBA loan.
7. Financial statements: Many lenders require that anyone with 20% or more stake in a business submit their financial statements as part of the loan package.
8. Collateral: Many lenders require you to pledge some form of collateral, so decide in advance what this might be.
9. Legal documents: Legal documents that will accompany your loan package include the articles of incorporation for your company, licenses and registration, franchise agreements, and any other documents pertaining to your business.

You should also be prepared to answer questions such as:

• Why do you want a loan?
• How will the loan be used?
• What other business debts do you have?
• Who else is on your management team?

Is an SBA Loan Right for a Startup?

SBA loans are a mixed blessing. For some startups, they are a great options. Many entrepreneurs find that traditional loans aren’t available to them. They may have poor credit, past business failures, or other problems. SBA loans may be open to them even when other doors are closed.

Women and minority-owned businesses may find SBA loans easier to acquire. Because the SBA is a government-run agency, the government sets the lending policies, and they tend to favor small businesses owned by minorities. If you are in this category, and you meet the other lending requirements specified by the SBA, you may find that an SBA loan is good choice for your startup.

Individuals with bad credit ratings who struggle to find a lender willing to consider their application may find a more willing listener with the SBA-inspired loans. Although a credit score of 680 and higher is necessary or recommended for several SBA loan categories, some consider a credit score of 660 or less.

Individual lenders who work with SBA loans may also be more open to dealing with individuals with poor credit histories if they are willing to offer additional collateral or other information to guarantee the loan.

Try an SBA Loan: Find Your Lender

If you meet the extensive criteria outlined for an SBA loan, it may be a good option for your business. Entrepreneurs who wish to expand or who need capital to see them through a tight period can find no better friend than the banks and lenders who partner with the SBA to offer loans.

The post Are SBA Loans the Best for Your Startup? appeared first on SmallBizTechnology.

Analytics has emerged to be a difference maker in ecommerce. It can track all your customers’ activities to know where your traffic coming from, what products they are browsing, how long they spend on each page, what items they put in or take out of their carts, and how successful are you in closing sales. This allows you to understand your customer behavior.

Guy Greenberg, founder of business intelligence and analytics company CoolaData, believes that understanding buyer behavior is key to increased conversions. He writes, “Advanced behavioral analytics offers businesses this added advantage by collecting, storing, enriching and analyzing raw user data over time.”

By knowing these, you would know which areas you need to improve on in your products and services. However, this is predicated on enabling analytics early on. Here are 7 areas where analytics can help improve your ecommerce efforts.

1 – Tailor a customer experience unique to your market

Providing a superior customer experience is essential to ecommerce. You should minimize customer effort from the moment they land on your page until you wrap up the sale. While there has been plenty of research done to identify “best practices” to consider in crafting user experience, it is still crucial to monitor how customers behave in your own context especially if you operate in a particular vertical or niche market. For example, if you offer more big-ticket or upmarket items, buyers may want to research more on the product compared to cheaper items. Analytics can tell you what content buyers are looking for. This way you can strengthen features such as comprehensive product descriptions, user reviews, and Q&A.

2 – Curb cart abandonment

Cart abandonment remains a major concern for ecommerce. Ecommerce across all industries suffers from an average abandonment rate of 70 percent. The reasons behind are varied from unexpected costs to complicated checkout processes to limited payment methods. Through analytics, it is possible to pinpoint the exact instances when users leave your service. This way, you can improve upon these areas and even conduct interventions in order to win them back.

3 – Improve marketing efforts

You can craft engagement campaigns and loyalty programs based on customer behavior to further improve your business. Analytics can be integrated with automation tools to help manage marketing activities and campaigns. For example, in the case of cart abandonment, automation tools can trigger email reminders or pop up promo codes just as customers leave in order to entice them to push through with the sale.

4 – Manage stocks and pricing better

It’s easy to determine which products are doing well based on sales figures alone. However, this doesn’t paint a complete picture. Analytics can help you delve deeper into your sales data. You can explore if there are products that are popularly browsed or added into carts but don’t get bought. You can then decide on actions such as tweaking your prices. You can even narrow down your catalog and focus on the ones that generate the best profit for you. You can also consider moving upmarket if you notice that you are moving big-ticket items more than low-priced products.

5 – Minimize returns

If you ever shopped for clothes online, you know how difficult it is to get the right size even if there are size charts available. Even Amazon users have to rely on other buyers’ feedback to make sense of a garment’s true size. US fashion retailers report a return rate of between 20 to 40 percent. Faulty sizing is largely responsible for such a high rate. Merchants have to shoulder much of the costs from returns. With the high rate, returns are costing many businesses. To help combat this, personalization platform True Fit uses analytics to provide fit ratings and size recommendations for shoppers. This lessens buyer anxiety and saves merchants on returns.

6 – Enable personalized recommendations

Personalization is a key driver to customer engagement. A major ingredient in Amazon’s secret sauce is its personalized recommendations feature. Recommendations account for 35 percent of  its sales. Powering the recommendation engine are algorithms that rely on the analysis of extensive historical customer data. You can definitely explore implementing your own recommendations engine and this requires tracking customer behavior on the onset.

7 – Prepare for cross-border ecommerce

Developments in logistics and payments services have enabled many ecommerce businesses to go global. However, a key challenge for cross-border ecommerce is localization. Culture has a great impact on buyer attitudes and preferences. For example, some regions prefer particular products despite not performing well in your other markets. By using analytics, you will be able to compare user behaviors specific to each market enabling you to customize your strategies and campaigns accordingly.

The essential thing to understand about analytics is that it gives you objective information about your business. In a high risk business environment such as ecommerce, it is important to rely on hard numbers rather than pure intuition. Adopting analytics early on will help you be mindful of all trends that are affecting your business. Using these insights, you can then pivot accordingly. By adopting early, you can also collect longer historical information about your customers and your business. These could prove useful for your business down the line especially when implementing engagement programs and personalization features.

The post 7 Reasons Why Your Ecommerce Business Needs Analytics appeared first on SmallBizTechnology.

Many of us fanaticize about quitting our day job, becoming our own boss, and gaining financial freedom by doing something we love beyond words

The intrinsic barriers that come with building a startup company is what keeps many out of the entrepreneurial game.

The single most daunting hurdle that stops the majority of people from ever launching is the same one that keeps them locked in soul-sucking jobs: Money.

Obtaining the necessary funds to begin a business can be a frustrating and arduous process; no one will argue that. But in today’s world, there are more options, tools, and platforms available to business owners than ever before; this this has made acquiring startup funds a tangible reality.

In fact, if you’re willing to think outside the box you may be surprised at how accessible your business dreams are. For example, a service called CloudKitchens allows restaurateurs to grow and expand by renting a ghost kitchen in Austin, Los Angeles, and many other cities. Coworking spaces allow consultants to “fake it until they make it” with a legitimate office address. Phone answering services do the same.

If you’re ready to join the ranks of those who left behind the proverbial safety net, I’ve got the resources for getting your startup funded.

Don’t Fear the Small Business Loan

Stop cringing; loans are not what they used to be. This is a perfectly viable way to get your business launched.

There are two types of loans to consider: Small Business and Personal.

Let’s deal with the small business loan route first. Since most banks won’t make loans to startups, a Small Business Administration (SBA) loan is your best hope. There are several SBA loan programs to choose from, though this is not who actually makes the loan. The SBA merely provides a guarantee for the loan if the applicant passes the screening process with an accredited SBA lender.

SBAs are particularly beneficial as they can help startups acquire funding, informational resources, and mentorship options.

To make sure that you obtain the lowest financing costs available, it is wise to use a business loan calculator to figure out a loan’s APR and get the best pricing possible.

If you have long-standing and satisfactory relationships with a bank, you could attempt to procure a business loan. If a loan is at all a possibility, be prepared to enter into an extensive loan application process that will include collateral for the loan.

Your second option will test the level to which you’re willing to be humble and ask for help. There are countless stories of successful entrepreneurs that launched their business with help from family and friends. If you are fortunate enough to know someone (or a collection of someone’s) who has the resources to and willingness to fund your company, this can be an ideal situation as it significantly cuts down on the paperwork and red tape you have to deal with.

As an established rapport already exists with your potential lender, it’s much easier to have open and honest conversations about the risks and rewards of the venture.

Be aware, however, that personal loans come with some significant potential downfalls.

Considering that more than 50% of startups fail in the first 4 years of operation, you are risking your relationship with whoever puts up the money.

Additionally, friends and family members likely don’t possess the experience necessary in order to provide guidance or help with business-related questions. This could also have adverse consequences on your business and relationship.

Those are the conventional options. Let’s move to the myriad of digital opportunities that can help you acquire the capital you need.

Specialized Funding Platforms

The online world enables startups and small business owners to gain all of the necessary resources for building a business. There are now a plethora of digital platforms that cater to entrepreneurs in need of funding.

Alternatively, platforms like FundingPost, Angel Investment Network, and Gust all help entrepreneurs and startups to connect with angel investors across the globe.

Each of these platforms has their own unique spin on the process so it is necessary to identify which is the right fit for you.

FundingPost connects entrepreneurs and investors at physical events in over 23 cities.

Angel Investment Network connects hopeful business owners and venture capitalists in the virtual space.

Gust also operates in the digital realm, but provides a variety of other tools and council for entrepreneurs to leverage along the way.

If none of these sound like a fit for you, there is yet another powerful route you could go to acquire money.

Start a Crowdfunding Campaign

Crowdfunding is an increasingly popular option for startups. The World Bank has estimated that crowdfunding will become a $90 billion industry by 2020 and many others have predicted that this medium will have surpassed the venture capital industry by the end of 2016, though this has yet to come to fruition.

For these reasons, platforms like Kickstarter, GoFundMe, RocketHub, and similar websites are particularly viable funding destinations.

Additionally, Indiegogo recently announced its entrance into the equity crowdfunding space through its partnership with Micro Ventures. This makes Indiegogo a particularly appealing option for startups as the site receives more than 15 million visitors per month.

Raising money can certainly be an intimidating and (at times) disheartening process. Thankfully, there are now an abundance of options for entrepreneurs to rely on. If you find yourself rejected from certain institutions or platforms, simply refine your pitch and move on to the next one. You can even use a combination of these options to turn your startup dreams into a reality.

Stay diligent. Don’t lose your passion. Persistence is always the secret sauce to success.

The post Where to Acquire the Funding to Start Your Own Business appeared first on SmallBizTechnology.

From Xero’s press release:  Xero’s new technology is the first example of personalized machine learning in a small business cloud accounting system. Developed in-house by a specialist team of engineers working full-time for a year across three different locations, the system uses detailed statistical analysis to learn from and assist the individual business and their partner based on their own specific circumstances.

The automation will mean small businesses no longer need to worry about where their invoice is filed – an invoice for time spent on site should be recorded against “Sales – Labor”, not “Sales – Materials”, for instance. The machine learning automation evolves with the processes used by the business and their advisor – when the small business comes to create their next invoice, Xero automatically suggests the account code so they don’t inadvertently make a mistake.

The new technology is the first step in Xero’s plan to build a bespoke, personalized assistant for small businesses and their NYC accountants to cut the administrative burden, prevent mistakes, and enable them to spend more time growing their business.

The machine learning automation will initially be made available to a initial group of small business customers and their accounting partners for testing, before being launched to all Xero customers later this year.

The post Accounting Gets Artificial Intelligence: Xero’s New Service appeared first on SmallBizTechnology.

It’s great to have an idea and a dream. It’s great to make your first sale. But nothing smells “amateur” and “unprofessional” like bad invoicing. I recently purchased an item online, from a fledgling part-time business owner. The payment site had a different name, the email address had a different name and the email I received had yet a different name.

These things make you look unprofessional and decrease the chances of repeat purchases.

Take the time to a) get a professional email address to use for all your business communication. You can do this VERY easily with GoDaddy (to get a domain name) and Microsoft Office 365 and Google Apps to power your email and other communication and collaboration.

Most business owners use one of several dozen great invoicing tools, but some don’t. Using an invoicing tool, instead of sending an invoice via an email message does a few things.

1. It looks professional
2. You can see what has been paid and what has not been paid
3. You can often get paid faster as it’s easier for your customer to pay you. Many of the invoice tools have built in payment options and/or links to PayPal

Some invoicing options include (and many of these options include a nice suite of options for solo entrepreneurs such as time tracking as well):

Zoho Invoice

Due

Freshbooks

Wave

Sage

Quickbooks and Xero both offer full-fledged accounting software which includes invoicing as well.

SmallBizTrends and More Than Accountants have compiled a nice list of invoicing options as well.

The post 3 Reasons Invoicing Apps Are Essential For Fledgling Businesses appeared first on SmallBizTechnology.

It’s understandable that you might want to take care of applying for worker’s compensation on your own but hiring a workers’ compensation lawyer in Santa Ana will ensure that you dont make these mistakes.

Identifying the right lawyers to handle your claim is important, as you want local attorneys who are knowledgeable about all aspects of the law, and who can work with your employer to file a proper claim. Interviewing attorneys can be laborious and time-consuming so it is important to have a list of questions ready for any potential lawyers before making contact. There are lots of lawyers in your area, not all of them specializing in workers compensation. Be sure the attorneys you contact have plenty of experience with workers compensation cases. You may wish to ask for education and experience references to see if the attorneys have worked in your area previously, or if they received training in another state or city. Ask how your potential lawyers handle difficult cases and what kinds of fees are charged. Look for attorneys who have experience specializing in workers compensation and are familiar with the government regulations.

Most workers’ compensation attorneys advise employees to inform their employers every time they get injured in the workplace, however minor the injury may be. Such injuries may result in serious complications later on, so if they do not file them early on, it may be more difficult for the employees to seek compensation.

Top Small Business Organizations

Help is available, small business owner! Whether you are looking to boost your knowledge with tutorials, videos, and lessons, improve your networking by connecting with other small business owners, or secure funding in the way of grants. In this article, we cover 23 of the top small business organizations that offer free and paid resources to help grow your small business.

The Most Common E-commerce Mistakes

You’ve started an e-commerce store and are delighted at the possibility of reaching a wider market and increasing your profit potential. However, if you’re not careful, you can make crucial mistakes that eat into your profit margin and hurt your business. In this article, we look at three of the top mistakes that small business owners make when running an e-commerce store, and we share an infographic that has tons of advice on how to fix a leaky e-commerce faucet.

Click to read 3 Mistakes that Cost Your Ecommerce Store (And How to Fix them)

Do You Know What the FICO Liquid Score Is?

Understanding your credit score is important for securing the funding you need both in your business and personal life. However, financial terms are often confusing, so it can be difficult to make sense of it all. Put yourself on a better financial path by reading this article that details the difference between your personal and business credit scores and how they combine to create your FICO Liquid Credit Score, which many lenders are using today to make their funding decisions.

Tax Tips for Small Business Owners

Taxes are an unfortunate reality that every small business owner must deal with. Should you set money aside for your tax payments, and how can you prepare for taxes without hurting your cash flow? This article covers three scenarios of when taxes and cash flow collide. You’ll learn how to plan for taxes in a way that will keep your business healthy and prepare you for tax day. If you still find your business struggling with taxes then consider getting help from tax relief services or you could get yourself prepared and take some tax planning courses.

It can be easy to get lost in the passion you hold for your business ideas – to focus on your products or fun elements like marketing and social media. However, a smart small business owner should always have a good eye on the finances, and these articles are guaranteed to help.

The post Smart Hustle Recap: Top Small Business Organizations, Taxes, Credit, and E-commerce Mistakes appeared first on SmallBizTechnology.

Finding Your Niche

As a small business, it is important that you define your identity, values, and market. It not only helps people understand who you are, but it also gives you a roadmap for how to drive your company forward, including marketing and product development. In this interview with James Hill of High Cotton, we learn about a company that “started with a yard of fabric on the kitchen table” and then grew into a million dollar business. They did this by targeting a very specific market and building an identity that would resonate with this group. If you could use some help finding your niche, this article is for you.

Click to read Developing a One-of-a-Kind Brand: James Hill and the Story of High Cotton

Small Business Legal Issues (And How to Avoid Them)

Your small business is driven by your passion but, unfortunately, if you make the wrong legal choices the business can quickly go off course. This article explores five of the most common legal mistakes that small business owners make, regarding legal structure, intellectual property, shareholders, investors, and payroll taxes. VanillaLaw firm is an international law firm for the for the global business community.  You’ll learn more about each of these important small business legal issues and also how you can avoid making disastrous legal mistakes.

Click to read 5 Common Legal Mistakes that Can Hurt Your Small Business

Lessons Learned About Becoming an Entrepreneur

The road to becoming an entrepreneur isn’t paved, and each person who sets down that path experiences his or her own bumps along the way. In this interview, we speak with Inger Stapleton, the owner of Inga’s Lingua, an educational program helping busy professionals learn the Spanish language.  Inger shares three of the most important lessons she’s learned from becoming an entrepreneur. Some of her points will be familiar for those who have entered the world of entrepreneurship, and other points just might surprise you.

Click to read Lessons Learned and the Importance of Setting Goals and Being Flexible – An Interview with Inger Stapleton

You may have noticed a theme in the articles chosen for this week’s Smart Hustle Recap: all are about the road to becoming a small business owner or entrepreneur, and how the choices you make along the way can either drive your success OR your failure. Finding your niche, avoiding legal issues, and learning as you go are all strategies that can drive your success. As you’re cruising down the road of entrepreneurship, take a quick break to get these and other lessons on SmartHustle.com.

The post Smart Hustle Recap: Finding Your Niche, Avoiding Legal Issues & More appeared first on SmallBizTechnology.

One such company that is trying to help businesses with this very endeavor is Xero. In this interview, we talk to Russ Fujioka, Xero’s President for the Americas region. He provides us with some vital financial tips and advice that are useful to all entrepreneurs.

Xero

Xero is a New Zealand-based company that was founded in 2006. Since then, it has been one of the fastest growing Software as a Service companies in the world. They are leaders in the New Zealand, Australian, and United Kingdom cloud accounting markets. Over 1,400 employees are located in 20 offices across the globe. Forbes even identified them as the World’s Most Innovative Growth Company in both 2014 and 2015.

The business was started because they wanted to change the game for small businesses. Their cloud-based accounting software helps people do their accounting anytime, from anywhere. It enables millions of small businesses to thrive by using better tools, information, and connections.

Russ Fujioka’s Financial Tips for Small Businesses

One of the more important aspects of running a business is keeping your finances in order. And we find Russ Fujioka’s advice incredibly valuable:

1. Invest in Technology

Many small business owners either feel strapped for cash or think they are not technologically savvy. Because of this, they might avoid making an investment in software that can actually help their business. Russ stresses that when you purchase software like the kind Xero offers, it takes an entrepreneur’s attention away from everyday details and allows them to re-focus their attention on taking action that will grow their business. Xero software automates financials which frees up time for small business owners.

2. Get an Accountant, Bookkeeper, or CPA

Not all entrepreneurs are skilled at accounting or keeping their finances in order so don’t be afraid to outsource those jobs. Accountants, bookkeepers and CPAs are trained to deal with money, and so you should seriously consider hiring one of these people long term. Then, you can put your efforts into other business-growing activities.

3. Don’t Do It Alone

Sometimes small business owners feel as if they need to know it all – and do it all – by themselves. But Russ points out that there are many people out there who can mentor and give advice along the way. In fact, he suggests that you assemble a team of trusted advisors made up either of professionals and/or friends who have different experiences that you do. Their assistance can greatly benefit you and your company.

The Takeaway

The ultimate goal of technology should be to help businesses alleviate mundane tasks. Too many people work too many hours that don’t actually lead to their businesses growing and thriving. Follow Russ’s financial tips by putting some thought into how you can invest in technology to make your business the best it can be. Investment in technology is the key to your business’s growth..

The post Financial Tips & Advice from Russ Fujioka of Xero appeared first on SmallBizTechnology.

The Importance of Existing Customers

These days, people do business with companies that they’ve formed “relationships” with, which means that a focus on existing customers can boost your customer retention, customer loyalty and, therefore, your profit. This article features four best practices for paying attention to existing customers, including how to deepen your relationships, stay in contact, and give your customers exactly what they’re looking for.

Click to read Why and How Successful Businesses Grow Revenue by Paying Attention to Existing Customers

Should You Surcharge?

Surcharging has definite benefits and costs. On the one hand, it helps you recoup the costs of credit card charges. However, on the other hand, your customers might not appreciate these extra fees. This article is designed to help you decide if surcharging is right for your business, sharing pros, cons, considerations, and alternatives to surcharging.

Click to read Surcharging Credit Cards in Your Small Business: What You Need to Consider

Boost Your Training with a Learning Management System

Training is an important part of bringing new employees aboard, implementing new systems and procedures, and keeping all of your team members at the top of their game. Have you ever considered a learning management system? These online systems help you create training programs that standardize the training process in an online e-learning program that you can customize to employees and also use to track their progress.

Click to read Why Your Company Needs a Learning Management System

What Is Holding You Back from Success?  

Do you ever feel frustrated because you seem to be hitting an invisible brick wall – that there is something holding you back, but you can’t quite pinpoint what it is? It’s time to let go of these hidden blocks so you can find the success you deserve! This article reveals three potential sources of your hidden blocks, so you can resolve the issue and move forward in your business.

Click to read 3 Ways to Uncover Your Hidden Blocks to Business Success

Smart Hustle aims to tackle the various problems that small business owners face, whether related to sales, marketing, business operations, technology, or any other area that is crucial to small business success. So what is on the top of your mind these days? Bring it to our attention in the Smart Hustle Community, and for other great stories, visit SmartHustle.com.

The post Smart Hustle Recap: The Importance of Existing Customers, Surcharging Credit Cards, & More! appeared first on SmallBizTechnology.