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[livanaweng]

Alfred: A butler for the 99%

Who has time for chores?

Startup Alfred -- named after Bruce Wayne's British butler -- thinks everyone should have access to an affordable servant. 

So for $99 a month, "Alfred" will stop by once a week to tidy up, sort through mail and fold laundry. 

In addition to the chores, Alfred, which launches Tuesday in Boston and New York, will also act as a concierge to help manage things like dry cleaning and grocery shopping. It will partner with startups like Instacart (a grocery delivery service), Washio (laundry and dry-cleaning) and Handy (housecleaning). While users pay the standard fees for these services, they don't have to bother coordinating the timing or giving everyone a set of keys. 

Alfred is meant to give people that "25th hour in your day," said co-founder Marcela Sapone. (Though the time an Alfred actually spends at a residence varies). 

Related: Mark Cuban bets big on new video sharing app

Sapone and co-founder Jessica Beck came up with the idea after hiring someone to help Beck with laundry (who then started coming once a week to take care of things like grocery shopping). The two invited their friends to also use the service while attending Harvard Business School. 

"We didn't have the intention of it ever being a business," said Sapone. 

But after the duo spent 18 hours brainstorming the service for a Harvard assignment, they decided to keep pursuing the idea. They eventually dropped out of school to work on Alfred full time. 

"It's a really good service for parents who work and are juggling a family," said Sapone. "[And] for young professionals putting in a lot of hours [or] entrepreneurs who are busy trying to launch what they're passionate about." 

Alfred has been operating in beta for six months in both markets and has "given back" nearly 10,000 hours so far. 

It may sound indulgent, but investors seem to think that more people will want to cash in on that extra hour. 

Alfred beat out 26 other startups to win $50,000 at the 2014 TechCrunch Disrupt competition in San Francisco. 

Related: Does text therapy actually work?

And on Tuesday, Alfred announced $2 million in funding from Spark Capital (investor in Twitter (TWTR, Tech30), Warby Parker and TalkSpace), as well as SV Angel and CrunchFund. The funds will be used to help reach more customers in more locations and to roll out a consumer-facing app this spring. 

"We're quite interested in the space," said Spark Capital general partner Bijan Sabet. "We met a ton of startups thinking about the problem, but this is the first time I saw a team with a real obsession for thinking about the user experience." 

Part of this means creating a trusted base of Alfreds. 

All must undergo "very rigorous" background checks including "five different layers of interviews," according to Sapone. 

Service economy startups like Uber and Handy have made headlines for exploiting workers. 

But Alfred said it pays a starting wage of $18 an hour, and provides benefits for those working 30 hours or more a week. So far, they have nearly 100 full-time Alfreds ready to make people feel like they're part of the 1%.  Source: http://money.cnn.com/

[livanaweng]

Why Michigan companies are helping small businesses with pro bono services from legal to Web marketing

Michigan is blessed with established companies wanting to help other start-ups, entrepreneurs, small businesses and second-stage companies better position themselves in order to improve the state's economy.

In 2011, the Michigan Economic Development Corporation (MEDC) launched an initiative, Pure Michigan Business Connect (PMBC), where established companies could pledge pro bono services for growing Michigan businesses. The goal of the program is to better connect service providers with Michigan companies in need of assistance to advance their company further.

This multi-billion dollar public/private initiative has already seen nearly 30 firms pledge over 30,000 service hours for Michigan businesses. These services are wide ranging and include legal, accounting, Web strategy, human resources and more.

One of the early participants in the program was Media Genesis, a Web design company in Metro Detroit. Founded in 1996, it started as a Web consulting firm, focusing on digital strategy. The firm has worked with a broad range of companies, including everything from automotive to nonprofits. When the initiative was formed, Antoine Dubeauclard, president of Media Genesis, wanted to be a part of it right away.

"I love how much sense it makes," Dubeauclard said. "We are getting Michigan companies to work with more Michigan companies and helping them become more competitive. There's real value in it."

While most services are measured in hours in the program, Media Genesis has pledged 50 Web Strategy Evaluation reports for companies to use and buttress their Web marketing efforts. Dubeauclard said this includes evaluating everything from mobile, SEO, advertising and beyond.

"We help them get a grasp of their issues, what they are doing well and more," he said. 

Also part of the program is Varnum, a statewide law firm that handles wide-ranging legal matters for small businesses and all the way up to Fortune 500 companies. 

Varnum's inclusion in the program began when the company sought what it could do to help a struggling economy.

"We looked internally at what Varnum could do to assist and change things up," said Steve Buquicchio, a partner at the company. "We wanted to bring things back to what it once was and spur some economic activity."

Already a heavy philanthropic company, Varnum saw PMBC as an opportunity to make a positive impact in the community. 

"With a statewide imprint, we could do something for the entire state and translate that into providing a spark into the economy," Buquicchio said.

In 2011, Varnum made a five-year, million-dollar commitment to MiSpringboard—a program that uses PMBC as a referral source and is designed to remove some of the barriers associated with starting and growing a business by providing free legal services. 

"It's a really good tool for folks to have," Buquicchio said. "In my experience in dealing with early-stage companies, they are appreciative of the opportunity to get some of these legal matters keeping them up at night resolved. Many times it can just be a sigh of relief."

Buquicchio and Varnum are pleased with how the program has been going and note the value of treating the clients that come through it as if they are paying, despite the work being pro bono.

"All sorts of entrepreneurs and small businesses can get involved through the MEDC," he said. "And legal is just one of the professional groups that help, and there are other law firms involved, too. MEDC really put together a great program here to spark the economy."

As the program continues, more and more companies are joining the likes of Media Genesis, Varnum, Google, Rehmann, Yeo & Yeo and more in offering their services. Whether it's for philanthropic reasons or to increase business development opportunities, reasons to join the program are plentiful. 

The PMBC program is one of many ways the MEDC is active in working to remove barriers to improve economic growth in Michigan. 

Source: michiganbusiness.org/b2b.

[livanaweng]

Today in Small Business: ‘Next Generation of Lender or Boiler Room?’

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

The Economy

• Private-company executives expect revenue growth of 9 percent over the next 12 months.

• Retail sales rebounded in October.

• Sliding oil and gas prices are giving Americans more money to spend.

• More people are quitting their jobs, and that’s good news.

Health Care

• This is what the self-employedshould know about health insurance for 2015. 

Finance

• Bloomberg Businessweek asks whether OnDeck Capital is “the next generation of lender or boiler room?”

• Chicago’s mayor says there are plenty of loans available for small businesses.

• The Export-Import Bank may have incorrectly labeled hundreds of large companies and units of multinational conglomerates small businesses.

Immigration

• President Obama is poised to overhaul immigration policythrough executive action.

• An angel fund commits $3.5 million to immigrant entrepreneurs.

Management

• Reddit’s chief executive steps down over the location of the company’s headquarters.

• Warren Buffett invests in batteries.

• Not listening to Mom and not being polite can cost a business a customer.

Employees

• Labor groups called on President Obama to prioritize federal contracting to employers that pay $15 an hour.

• Here are five reasons employees quit.

• Condé Nast settles with 7,500 underpaid interns for $5.8 million.

• A lot of people didn’t vote because they couldn’t get off from work.

• Mike Myers and his brother, a 32-year Sears employee, make an ad for the retailer.

Sales

• Here is why leaving your lunch at home could be the best career move you’ll ever make.

Retail

• Walmart tries “a new kind of Black Friday.”

• And in case you run out of paper clips on Thanksgiving Day, Office Depot will be open.

Around the Country

• Washington, D.C. may be the Uber-friendliest city in the nation.

• A Georgia entrepreneur competition is accepting business plans.

Around the World

• To counter the effects of aging, a New Zealander takes a bath in red wine.

Around the Universe

• Incredible photos showing the surface of a comet are beamed back to Earth.

Washington

• The Federal government is bailing out honeybees.

Marketing

• Here is the surprising reason those five-cent charges for plastic bags work.

• Here are five predictions for Hispanic marketing online in 2015.

• Doritos-flavored Mountain Dew and the genius of PepsiCo marketing.

Social Media

• Twitter’s debt is rated as junk.

Ideas

• A company aims to connect pet owners and vets through video chat.

• This is the story of a man who revolutionized the way we consume bread.

Technology

• BlackBerry is tapped to help provide security for Samsung phones.

Gene Marks owns the Marks Group, a Bala Cynwyd, Pa., consulting firm that helps clients with customer relationship management. You can follow him on Twitter.

Correction: November 14, 2014  An earlier version of this post misstated the interest rates that OnDeck Capital charges small businesses, as reported in an article in Bloomberg Businessweek. The Businessweek article stated that OnDeck Capital is part of an industry where rates can exceed 500 percent, not that OnDeck Capital's rates can exceed 500 percent. Source: http://www.dnsrsearch.com/

[livanaweng]

5 Social Media Tips For Small Business

Social media is a great way to get the word out about your business. But if it’s not delivering results, take a step back and see if you’re following these best practices.

1. Communicate your uniqueness

Too many businesses are trying to be too many things. Instead, focus on what makes you unique and incorporate that into your social media strategy. That means communicating how your value proposition to customers is different from competitors, of course, but more importantly it means having a personality! If you’re building your business around your personal brand, don’t be afraid to let your real self shine through. And if your whole company is using social media, establish editorial guidelines and an editorial voice that feels real and has a personality that everyone on the team can understand and bring to life.

2. Stop selling

Just because you can sell doesn’t mean you should — or at least, don’t use social media strictly to sell. For example, I recently met with a real estate agent who wanted to be known as the go-to expert agent for his community. He feels he knows the community better than any other agent. He lives there, has a family, and is involved in the community through things like local youth sports. But when I saw his Facebook page, it was littered with images of available listings — and nothing else. Not one thing on his page demonstrated that he knew the community. Instead he demonstrated that he was an expert at uploading listings in his area — and any service can do that.

I noticed he was getting no engagement, so I told him stop thinking like an agent and begin thinking like a resident. For example, when he told me about the local yogurt spot that’s popular in his community, I told him that was a perfect opportunity to create a community “insiders” post. I suggested he take a photo of himself having yogurt and post it to Facebook asking for engagement from locals: “I love Jimmy Yogurt shack, my fave flavor is banana cream, what’s yours?” Then every fourth post or so, he could include a marketing message with an available property and explain why it’s great for that community. In other words, he can become the go-to expert agent by being the person who evangelizes the neighborhood rather than real estate.

3. Tell a story with images

Images are your secret weapon in breaking through the clutter of social media. Images are an incredible way to say a lot, quickly and easily, in a way your followers can easily react to. Multiple images and collages are especially great for saying a lot without words. For example, a baker could show me one image that actually contains four separate images: ingredients, the mixing, the finished cupcake, and someone smiling and holding a half-eaten cupcake. You get the idea. Images can tell a story. They’re also easy to digest, like and share. Think about how huge Instagram is.

4. Show us with video

People don’t have to imagine as much with video, so it’s another great way to communicate your uniqueness and tell stories while making content that’s super shareable.

Recently a bike store owner approached me about expanding his business and mentioned he was creating a blog to help show why they are the best at what they do. A blog is a great way for a business to drive site traffic, but when I went to his blog it was static. There were a few articles like “how to fix a flat tire on your mountain bike,” but it didn’t have regular updates that help drive readership and search engine optimization. He didn’t have the kind of content that differentiated their bike shop.

So I told him to shoot video. For example, take video of the workers in the store and tell me about them. I want to know the story and what makes them experts. Show off a bike designed for super diehards — not just recreational cyclists — so we can experience the skills and expertise of his team. But I also told him to keep it casual and avoid a hard sell.

“Here’s Jim who works in repairs. Jim, what’s the most common repair you have to make?” But then you might notice his sandwich is half-eaten and you ask him what he had for lunch. In other words, shoot quick videos that help show his expertise but also make him human and tell me more about him. Creating a human connection is a great way for potential customers to remember you. Imagine a customer who walks into the shop and says, “Hey Jim, I saw that video, great tip and by the way did you ever finish that sandwich?” That’s instant credibility – especially if customers are wondering whether he cares more about fixing bikes than finishing his lunch!

5. Do A/B testing

If you aren’t getting results, try experimenting with your content in a systematic and scientific way. Study your content and what seems to resonate, then try different variations and see what gets engagement. Remember to only try to test one “variable” at a time; otherwise you won’t know what’s making the difference.

Mario Armstrong, Digital Lifestyle Expert, is an Emmy Award winning tech commentator for the TODAY show, CNN, HLN, and Fuse. An entrepreneur by nature, Armstrong made his passion his career by quitting his day job and founding Mario Armstrong Media. Follow Mario at @MarioArmstrong.

By Mario Armstrong

Source: http://www.forbes.com/

[livanaweng]

10 Simple Marketing Tips for Small Businesses

Marketing doesn't have to be hard or expensive. Sometimes the simplest ideas are the most effective.

As a small business, you may think it's impossible to get the word out about what you do. That's no excuse. And you don't need fads or gimmicks. Follow the proven, timeless tips and techniques of these entrepreneurs to help get the word out about your business and watch it grow.

1. Give Your Stuff Away

Ari Fleischer and Aly Moler of Frozen Pints have grown their craft beer ice cream business by leaps and bounds by attending craft beer shows and farmers markets to do one thing--give their product away. Once customers taste this unexpected combination (which happens to be delicious) for free, they line up at their local store to buy it or even request that the store carry it.

2. Attend Networking Events...

Desiree Scales of Bella Web Design is a master networker.  She attends and presents at almost every event in town. Her contribution to the overall community makes her one of the first people that come to mind when anyone looks for an expert in her area of concentration: small business websites and drip marketing.

3. ...Or, Create Your Own Event

If you don't like the events you are attending, invent your own! Darrah Brustein has created one of the most successful networking events in Atlanta: Atlanta Under 40. The event, which Darrah created to connect with other young entrepreneurs in her city, is now being franchised to other cities.

4. Volunteer to Lead an Organization

The secret to getting the most out of a group or organization is not just to attend but to lead. Take Lisa Calhoun of Write2Market. She served as the president of Entrepreneurs' Organization, allowing her to rub elbows and connect with the brightest minds of the fastest growing companies in the Atlanta market.

5. Start a Podcast

Todd Schnick of Dreamland Interactive is the first person I saw create his own podcast--he interviews other business owners.  People love to tell their story, and by highlighting them on a podcast you make an instant and meaningful connection. It's also a great way to get an education on a topic you are interested in.

6. Be Helpful

Most small business owners struggle to get their finances in line, especially when they move from an Excel spreadsheet to something as sophisticated as QuickBooks. Cathy Iconis of Iconis Group hosts a Quickbook Chat on Twitter every Thursday night at 7:00 EST to answer small business owners' questions--and potentially find some clients.

7. Send a Weekly E-mail

If you want to stay in relationship with your customers, there is nothing simpler than creating a weekly e-mail that provides something of value. Rick Houcek of Soar With Eagles sends one out every Monday that he calls the 2-Minute Monday Motivator. I look forward to getting it every week and often forward his advice to others.

8. Support a Cause

Mary Hester of LAN Systems throws an annual cookout with purpose every Earth Day. Party-goers are encouraged to bring their "e-waste"--old computer monitors and CPUs. At their most recent event they collected more than two tons of IT equipment, keeping it out of the landfills and creating goodwill with their customers, current and potential.

9. Sponsor an Organization

Many local organizations are not that expensive to sponsor for a year if you consider the  so-called per meeting cost. If your product or service is a good fit with their audience, you will get exposure every time the organization sends out an e-mail and a mention every time they meet. Attendees always remember and appreciate companies who sponsor their favorite organizations.

10. Create a Cool Giveaway

When thinking through what your company will  give away make sure it's something they won't want to throw away or easily lose in their desk or bag (think pen). Source: http://www.inc.com/eric-v-holtzclaw/

[livanaweng]

11 Tips From Successful Small Business Leader

Whether it’s about how to use social media, getting through the early dark days of a startup, or about marketing your business, getting advice can help you succeed.

The video below contains success tips from 11 business leaders.  It was shot at ICON14 in Phoenix, Arizona. ICON is the Infusionsoft customer conference that attracts 3,000 attendees, most of them small businesses or serving small businesses like yours and mine.

I was there on behalf of Small Business Trends capturing some “man on the aisle” interviews from presenters and attendees.

And out of all the success tips, what’s my favorite?  Well, it’s from Clate Mask, CEO of Infusionsoft, who sat down and talked frankly about the brutally tough early days of the company he co-founded over a decade ago.   Infusionsoft, which got $54 million in venture capital from Goldman Sachs, bootstrapped its way for years before earning that large injection of growth capital.

Mask says that in the early years, every single day was a struggle for survival.  And while cash flow and business experience matter, the real secret, he says, “starts in your head with your success mindset, attitude and positive thinking.” This is what gets you through the struggle.

Tip 1: In Social Media, Be Where Your Customers Are

“Know where your customers are hanging out online. You don’t have to be everywhere. Be where your customers are … and communicate with them there.” – Laurie McCabe, Partner SMB Group, SMB-GR.com

Tip 2: Never Stop Networking. Don’t Give Up

“Never stop networking, never stop pushing. It’s easy to give up when everybody around you … is telling you ‘you can’t do it’. You have to be around positive people. Then push on.” – (Starts at 1:08) Tom Force, Owner, ICE Keytags

Tip 3: Twitter Provides Powerful Market Research

“Twitter is the best thing that ever happened to small business owners. You can listen to your competitors or customers, and they don’t even know you’re listening.” – (Starts at 2:01) Melinda Emerson, Author of Succeed as Your Own Boss 

Tip 4: It’s all About Mindset and Positive Thinking

“Our first three years were brutally tough… every day was about survival. Then I remembered a lesson from my father. Your mind is everything, yet it’s not what you know, but rather how you deal with it. It is about your mindset and positive thinking.”  – (Starts at 2:43) Clate Mask, Founder and CEO, Infusionsoft

Tip 5: Wearable Tech Keeps You Fit

“The ‘wearables’ tech trend is keeping people fit, keeping them active, and keeping them in toe with their fitness goals.”  – (Starts at 7:10) Tishin Donkersley, Editor in Chief, AZTechBeat.com

Tip 6: A Handwritten Thank You Note Will Wow Customers

“One simple way to ‘wow’ customers is thank-you cards — a handwritten note, a thank-you card saying ‘thank you for buying from me’.” – (Starts at 8:09) Ramon Ray, Technology Evangelist, SmallBizTechnology.com

Tip 7: Share Information on Facebook That is Great for Your Customers

“Having a Facebook presence as a real estate professional is vitally important. Buyers and sellers are there. Make sure you are sharing information that is great for the consumer, not just real estate people.” – (Starts at 9:09) Bill Harney, CEO, Keeping Current Matters

Tip 8: To Get PR, Offer Yourself up as a Thought Leader

“If you are a local small business, look at local media for PR. Read those publications, forge relationships, find out what types of stories the journalists are covering, and offer yourself up as a thought leader on a topic.” – (Starts at 9:49) Laura Collins, PR at Infusionsoft

Tip 9: Put Processes in Place in Your Business to Ask for Referrals

“Put processes in place in your business that ask for referrals. And make sure the customer experience is above expectations.” – (Starts at 11:21) Jonathan Graves, President, Graves Organization, Inc.

Tip 10: Your Sales Pipeline Should Qualify Leads at Every Step

“You need to set up a process to convert the most leads possible. Put them in a sales pipeline … and add checkpoints to determine those who are qualified, versus those who aren’t.” – (Starts at 11:52) Justin Roberts, Infusionsoft Expert, Infusionsoft

Tip 11: Entrepreneurship is Lonely. Reach out to Mentors and Peers

“Entrepreneurship is one of the loneliest professions in the world. The entrepreneurs that are really successful reach out in networking groups and peer associations — or just to one person. They need that thought partner.” – (Starts at 13:00) Jeff Mask, Vice President, Infusionsoft Source: http://smallbiztrends.com/

[livanaweng]

Ten Tips for New Small Businesses

1. Save up as much money as possible before starting.

All too often, people go into business without any savings, exclusively using loan money from friends, banks, or the SBA. They except to be able to start paying the loans back right away with their profits. What these business owners don't realize is that it can take months or years to make a profit. And once a lender discovers a business isn't as profitable as expected, the lender is likely to call in the loan or refuse to renew it for another year. Often new business owners then have to take out home equity loans or use credit cards to pay off their loans (which puts their home and credit rating at risk). For more information, see Nolo's Business Financing FAQ. 

A better plan is to save up as much of the needed investment money as possible, including your living expenses for the first year, or even two. Odds are that your business won't be profitable for one to two years. Even if you get plenty of business coming your way -- and your customers pay you on time, which isn't always a sure thing -- you'll want to be able to invest most of that money back in the business for space, equipment, advertising, and insurance needs.

2. Start on a shoestring.

Think small. Don't rent premises if you can work somewhere else, and don't hire employees until you can keep them busy. (You can hire independent contractors or temps in the meantime.) 

People who start their small business on the cheap, often in a garage, den, or some other scavenged space, and create their first goods or services with more sweat than cash, have the luxury of making their inevitable rookie mistakes on a small scale. And precisely because their early screw-ups don't bury them in debt, they are usually able to learn and recover from them. (Plus, running your business from home can save you tax dollars too -- see Nolo's article The Home-Office Tax Deduction for more information.)

3. Protect your personal assets.

When you go into business for yourself, you are usually personally liable for all judgments and debts that the business incurs. This includes business loans, taxes, money owed to suppliers and landlords, and any judgments against the business as a result of a lawsuit. If you don't protect yourself, a creditor can go after your personal assets, such as your car and your house, to pay for these debts. 

While you can protect yourself against lawsuits by buying business liability insurance, this won't help you with business debts. If you will be running up big debts, consider forming a corporation or limited liability company (LLC). Just one person can form either of these types of businesses. For more information, see Nolo's article Choosing the Best Ownership Structure for Your Business.

4. Understand how -- and if -- you will make a profit.

You should be able to state in just a few sentences how your business plans to make a substantial profit. For starters, you need to know your costs: how much you'll spend purchasing inventory, paying the rent, compensating any employees, and covering what is likely to be a surprisingly long list of other costs. Then you can figure out exactly how much you need to sell each month, for how many dollars, to cover those expenses and have an adequate profit besides. These numbers are all you need to create a "break-even analysis." For more information, see Will My Business Make Money?

5. Make a business plan, no matter how short. Understanding your profit numbers and creating a break-even analysis is the first step in making a business plan. For most small companies, the key portions of a business plan are the break-even analysis, a profit-and-loss forecast, and a cash flow projection. (Projecting your cash flow is key and will make or break your company: Even if your business is getting plenty of work or selling its products, if you're not getting paid for 90-180 days, you're not going to survive unless you've planned for it.) With a cash flow spreadsheet in place, as well as a profit-and-loss forecast, you can tinker with your business idea and improve it before you start -- and continue to use them after you start. 

Creating a business plan also allows you to determine what your projected start-up costs are (how much money you'll need to save) and what you marketing strategies are (how you'll reach customers to make sales). If you can't make the numbers work on paper, you won't be able to make them work in real life. For more information, see Nolo's Business Plan Basics.

6. Get and keep a competitive edge.

Building a competitive edge into the fabric of your business is crucially important to long-term success. Some ways to get this edge are by knowing more than your competitors, making a product that is hard or impossible to imitate, being able to produce or distribute your product more efficiently, having a better location, or offering superior customer service. 

One way to hold on to your competitive edge is to protect your trade secrets -- confidential information that gives you a competitive advantage in the marketplace. Examples of trade secrets include customer lists, survey methods, marketing strategies, and manufacturing techniques. To protect your trade secrets under the law, you need to take steps to keep the information confidential. This includes marking documents "Confidential," using passwords to protect computer information, using nondisclosure and/or noncompete agreements, and limiting access to employees with a reasonable need to know the trade secrets. (For more information, see Nolo's Trade Secret Basics FAQ.)

Another way to keep your competitive edge is to react quickly to bad news. Once you see that your business faces some kind of adversity, you need to come up with a plan to deal with it immediately. This may involve moving your offices, introducing a new product or service, or developing a better way to reach customers.

7. Put all agreements in writing.

The laws of your state require you to put some contracts and agreements in writing: 

Contracts that will last longer than a year.

Contracts that involve the sale of goods worth $500 or more.

Contracts that transfer the ownership of copyrights or real estate.

(To learn about contracts, see Make a Legally Valid Contract.)

Even if not legally required, it's wise to put almost everything in writing, because oral agreements can be difficult or impossible to prove. This includes leases or rental agreements, storage agreements, contracts for services (such as consulting or electrical work), purchase orders or contracts for goods worth more than a couple hundred dollars, offer letters of employment, and employment policies. Get in the habit of getting and giving receipts for all goods, services, and deposits, regardless of how much.

8. Hire and keep good people.

Your goal should be to hire and retain truly excellent employees -- not just reasonably competent ones. A highly competent and truly enthusiastic employee is at least two and sometimes even three times as valuable as a person of average skills. 

To create a stable and happy workforce, it's essential not only that your employees (and independent contractors) believe they are being fairly treated, but that your business is worthy of respect. Employees and contractors who like their work will represent you well on and off the job. And customers will more likely be loyal to an upbeat business -- and are more likely to recommend it to their friends. For more information, see the Human Resources area of Nolo's website.

9. Pay attention to the legal status of your workers.

When you hire workers as independent contractors, make sure they shouldn't really be taxed as employees. The IRS can impose substantial penalties against you for not withholding taxes and paying taxes for a worker who is really an employee. The IRS and other agencies are likely to think that a worker is an employee rather than an independent contractor under any of these conditions: 

The worker works full-time or nearly full-time for you.

The worker doesn't work for anyone else.

The worker provides services that are an integral part of your operations.

You control how the worker does the job and provide detailed instructions and training for the worker.

One way to help avoid trouble is to have the worker sign a written service contract, or independent contractor agreement. For more information, see the Hiring Independent Contractors area.

Most employees you hire will be "at-will" employees -- subject to being fired at any time and for any reason (except for illegal motives such as discrimination). It's important to preserve your at-will rights because they protect you from having to prove that you have a valid business-related reason to terminate an employee. Don't make any promises to prospective or current employees that you are offering a permanent job or that they will lose their job only if they perform poorly, because this will limit your ability to terminate the employee for other reasons, such as personality conflicts or finances.

When hiring an at-will employee, have the employee sign an offer letter that makes it clear that the employment relationship is at will. Except for high-level executives, you shouldn't have employees sign an employment contract -- this can limit your ability to alter the terms of employment as your business needs change and subjects you to higher legal standards. For more information on hiring employees, see the Hiring Employees area.

10. Pay your bills early and your taxes on time.

In the real world, where a reputation for keeping one's word is a hugely important asset, a good strategy is either to pay your bills up front or pay them early. You gain trust, build a positive credit profile, and have a built-in safety net if things go badly. These benefits outweigh any interest you might earn by holding onto your money until the last possible minute. 

Most importantly, pay your payroll taxes on time, especially the portion that you withhold from your employees' paychecks. The IRS and state tax authorities can hold you personally liable for these taxes, plus stiff penalties, if they're not paid. This is true even if you operate your business as a corporation or LLC or if your business goes bankrupt -- you will still be personally and legally on the hook to pay back payroll taxes. (If you find yourself having trouble paying the bills, see Nolo's article Tips for Financially Troubled Businesses.)

by: Beth Laurence, J.D. Source: http://www.nolo.com/legal-encyclopedia/ten-tips-new-small-businesses-29486.html

[livanaweng]

10 Tips How is Your Business Growing?

So your business is growing – but how are you managing that growth? Shifting from wearing many hats and working side by side with your team to planning and managing your staff from a macro level may require some change. As you shift your management style, take into consideration the ten tips below to affirm your business is built to flourish.

Planning is Key. Targeting goals like new market opportunities abroad or new service offerings for example, will help you identify the resources, infrastructure, processes and systems needed to create the appropriate growth strategy for your business. As you identify your goals define: which resources are within reach, which goals require investment, the costs to your business in pursuing the goals and the appropriate deadlines. As you progress, continue to adapt your plan.

Budget. Although most of your budget will relate to costs, thinking about your budget differently by identifying areas that lend to growing your revenue or expanding reserve accounts is just as crucial. Identify the expenses that are specifically allocated for growing revenues and pin the necessary plan(s) to reach those revenue goals over the short and long term, any funds saved on expenses can be placed into a reserve for infrastructure investment or new growth opportunities.

Wait for the Right Opportunities. New opportunities can always arise, however, make sure to examine the resources within reach, the investment, and most importantly whether the opportunity fits into your long term strategy for growth. Does the opportunity encourage steady growth and push you to scale your business? Does it add a short term surge which might pose serious pains in the future? Ask the right questions, pay attention to your market, and even ask your customers for their insight, if appropriate.

Drive with Technology. Do you have the appropriate technology and software in place to measure and maintain growth? Reviewing client information is crucial for collecting primary insight like purchasing patterns, conversion rates, and the success of your efforts. You can then use your current client data to forecast, plan launches and prepare for the future. Other technology can assist in the review of your HR information, budget, recordkeeping, delivery and inventory processes. Remember to weigh the benefits of new technology with the costs; consider solutions that allow your business to run more efficiently or help improve your product/service. 10 Tips: “Think like the Giants.”

Cross Check. Growth can sometimes cause stresses on quality or even customer service. Check in with your clients, send a survey or correspondence with information on what’s new or a simple “how are we doing?” Reviewing responses can help uncover your strengths and weaknesses. Then, direct attention to any areas in need of maintenance and build up your strengths. Apply the same practice internally and set high expectations from the onset for your outputs. Establish new processes like requiring other departments to check contracts before release for example.

Keep the Core Values Alive. It might look tempting to create all new values or standards for your business as you grow, however, consider how your deepest values have allowed your business to grow thus far. Stay true to the fundamentals and be the champion of those values for not only your customers, but your employees as well. Ensure the company culture along with its early values grow together with the business, especially when hiring new talent.

Find Great People and then Delegate. You might love marketing, but learning to delegate is key to achieving your macro goals. Even when your passions are areas of excellence, consider your personnel needs after evaluating your budget. Review where it may be beneficial to hire talented individuals to help manage duties and make sure new management can be trusted with your business vision. Then, delegate the necessary tasks. Free webinars on recruiting from LinkedIn: http://business.linkedin.com/talent-solutions/recruiting-best-practices-webcasts.html

Inspire Open Communication. Open communication throughout your business allows important messages, goals,or changes to be delivered in sync. Establish an easy method for connecting with your staff like monthly or quarterly phone conferences, webinars, or internal newsletters –ask for feedback or comments. Assure communication is always open among important partners, staff, and customers.

Invest in Your Brand Promise. Branding is about your promise to your customer and the differentiation between you and your competitors. Is it time to rebrand or revamp your current branding? What do you want your brand to say about your business? Assure you live up to your brand promise company-wide and that your employees know they communicate your brand message to your customers. Think about investing in a strategy to implement consistency throughout the company from new employee training programs, to template marketing materials, to use of new marketing channels. Investing in creating a style guide for example that shows consistent use of your business colors, logo, and quality on printed material, delivery trucks, uniforms, emails, order forms etc. strengthens the long term recognition of your company.

If Necessary, Bridge the Gap. If you are ready to make the appropriate investments in your business now but need extra funding to bridge the gap, expansion capital may be an option. Remember to match the funding (i.e. line of credit, business loan, commercial loan) with the size of the investment. For larger investments, seek longer term loans. Before you seek financing, review and update your business plan and consult with an SBDC advisor to review the financing options available to you. The SBDC can also help you package your loan and shop it to Network financial partners to assist you in securing the best rates and opportunities. 10 Tips: “Inventive Financing Methods.”

Source: http://smallbizla.org/2014/10-tips-on-how-is-your-business-growing/#sthash.Ldf4KRIH.dpuf

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Invaluable Advice From 18 of America's Top Small-Business Owners

Every state in America picked one small business owner as its small business person of the year as part of National Small Business Week. Each one of them was up for the national award as well.

One of these, John Stonecipher, President and CEO of Guidance Aviation Inc has just won the award of Small Business Person Of The Year.

These people are doing amazing things, from contracting with the Department of Homeland Security to making silver-gallium nanoneedles.

Here are 18 of the winners, along with the one piece of advice they have for current and aspiring business owners.

ARIZONA: John Stonecipher, President and CEO of Guidance Aviation Inc. and Small Business Person Of The Year Winner

Image credit: Guidance Aviation

Guidance Aviation is a high-altitude flight school and John Stonecipher just won Small Business Person Of The Year.

One piece of advice for small business owners: 

"Surround yourself around the best people you can and give them an opportunity to do what they love to do best. Each one of my staff and faculty are leaders themselves. I cannot succeed without them."

OREGON: Judith Huck, President Classique Floors Inc.

Image credit: Judith Huck

Raining Rose Inc. is a producer of customized lip balm and other natural body care products, founded in the late 1990s by a couple who started creating lip balms in the kitchen of their home as a hobby. 

One piece of advice for small business owners: 

"Try to find a mentor if possible. I was incredibly fortunate to have had Art Christoffersen as my business partner ... He was a great sounding board and really never told me what to do, but he asked some great questions that led me to the answer."

IOWA: Charles Hammond, President and CEO, Raining Rose

Image credit: Chuck Hammond

Raining Rose Inc. is a producer of customized lip balm and other natural body care products, founded in the late 1990s by a couple who started creating lip balms in the kitchen of their home as a hobby.

One piece of advice for small business owners: 

"Try to find a mentor if possible. I was incredibly fortunate to have had Art Christoffersen as my business partner ... He was a great sounding board and really never told me what to do, but he asked some great questions that led me to the answer."

See also: 14 Of The Most Essential Lessons You Learn In Business School

KENTUCKY: Dr. Mehdi Yazdanpanah, CEO, Founder of NaugaNeedles

Image credit: NaugaNeedles

NaugaNeedles manufactures silver-gallium nanoneedles -- tiny rods approximately 1/1,000th of the thickness of a human hair -- which are used in biomedical applications, sensors, and tools for semiconductor manufacturers.

One piece of advice for small business owners: 

"I guess I would say don't be afraid. If they have a business idea but are afraid because of a lack of funding or experience and so on, I have to tell them don't worry, these are not going to be an issue in this country."

CONNECTICUT: Chris Runyan, President GameXChange

Image credit: Jessica Zielonka

GameXChange is afranchised retail store that sells, purchases, and trades new and used electronic gaming hardware, software, and accessories.

One piece of advice for small business owners: 

"The advice I'd give is to make as many mistakes as you can, as fast as you can. Get them out of the way. No one hits home runs right away."

MAINE: Matt Qualey, President Granite & Stone Fabrication

Image credit: Qualey Granite 

Qualey Granite & Stone Fabrication produces granite countertops for kitchens and baths, a full range of flooring tiles, and has wholesale contracts with Lowes and Home Depot.

One piece of advice for small business owners: 

"One of the things we were told is pretty simple -- do the best you can, and do it when you say you're going to. In my business, it makes a big difference.

"(Social responsibility) is incredibly lacking in business today, we don't wear it on our sleeve, it makes us feel good. It makes us get up in the morning. My role is to be a good role model, a much better steward for the community."

SOUTH CAROLINA: Noah Thomas Leask, President and CEO of ISHPI

Image credit: ISHPI

Charleston-based ISHPI specializes in cybersecurity and defense-focused information technology. They have contracts with government agencies like the DOD and Department of Homeland Security. 

One piece of advice for small business owners: 

"Do not underestimate the amount of effort, perseverance, and discipline that is required to be successful. I cannot stress that enough. There will be problems and you must be ready mentally, physically, and spiritually to deal with them. If you are starting a business to get rich and work less, then you are on the wrong path. One should be working on enjoying the journey not thinking about the destination. The riches-seekers never reach it." 

ALABAMA: Ellen Didier, President Red Sage Communications

Image credit: Ellen Didier

Red Sage Communications focuses on strategic marketing, branding, graphic design, and website development.

One piece of advice for small business owners: 

"Be collaborative with your staff, your customers, and your vendors or suppliers. The more you trust the team knowledge and wisdom of those around you, the more quickly you can recognize and adapt to changes, provide better products or services, and the stronger your organization will be."

See also: Here's Why Recruiters And CEOs Really Think About The Value Of An MBA

MARYLAND: Mike Sawyers, President 7Delta

Image credit: 7Delta

7Delta is a service-disabled-veteran-owned small business which provides information technology services for the Department of Defense and other U.S. government agencies.

One piece of advice for small business owners: 

"It's about long-term relationships and treating your customers right. Do what's right for them long-term. Once you win the business, that's when the hard work begins. ... It's all about relationships and reputation."

PENNSYLVANIA: Regina Broudy, President Clayton Kendall

Image credit: Clayton Kendall

Clayton Kendall specializes in branded merchandise and decorated apparel.

One piece of advice for small business owners: 

"Look at every interaction as a networking opportunity. You never know when a business opportunity will present itself. A chance encounter could be a big break for your company.

"Our employees, honestly, they take such an interest, like its their company. We treat them like family, we give them great benefits. That's very important because if they're not really part of your team, it doesn't work. They're excited when good things happen. We started with nine people, now we have 65. There are so many little details that we can do for the customer to make things go well for them."

OHIO: Karri Bass, Founder and President Illumination Research

Image credit: YouTube

Illumination Research is a market research and strategy firm dedicated to helping businesses better understand their customers.

One piece of advice for small business owners: 

"We definitely have, well, actually have just defined our core values and crystallized what we think Illumination has been built on: a spirit of optimism and believing in ourselves. ... Don't be afraid to lean forward and take risks 13 dream big and then believe in yourself to make it happen."

RHODE ISLAND: Brenda Brock, founder, formulator and CEO of Farmaesthetics

Image credit: Farmaesthetics

Farmaesthetics creates, designs, produces, and sells natural, herbal skincare products.

One piece of advice for small business owners: 

"Build your business around your life, not your life around your business. This will give you stamina to build a business with longevity."

VERMONT: Pete Johnson, President of Pete's Greens

Image credit: Jordan Silverman

Pete's Greens is a certified organic four-season vegetable farm which utilizes moveable greenhouses.

One piece of advice for small business owners: 

"We've had this business-owners group where we get together at somebody's operation. ...We have a potluck, we have a topic, and usually it's something [the host company] is struggling with. ... We have an hour or so discussion about that topic. It's extremely powerful.I always encourage folks to start something like that in their area."

See also: Three Brothers Are Trying To Change The Way New Yorkers Drink Coffee At Work

WASHINGTON: Jill Blankenship, CEO Frontline Call Center

Image credit: Frontline Call Center

Frontline Call Center provides call center support to customers via phone, online chat, or email response.

One piece of advice for small business owners: 

"Develop a daily P&L and ask yourself 'Are we making money today or losing money today?' This will allow for you to fix a problem quickly or continue to do the things that work."

VIRGINIA: Jason Cohen, President ILM Corporation

Image credit: ILM Corporation

ILM Corporation provides data entry, scanning, indexing, document management, and clerical services to large corporations, banks, universities and federal agencies.

One piece of advice for small business owners: 

"It comes from your mother. And she says when you tell somebody you're going to do something, do it. That's it. And it still rings true today ... I find in business today people tell you a lot of things and then they don't follow through with it whether it be employees, vendors, customers or prospects, whomever, it's very frustrating."

WYOMING: Aaron Rodolph, President Rodolph Brothers Inc.

Image credit: Rodolph Bros.

Rodolph Brothers Inc. is a full-service landscaping company specializing in mowing, irrigation, tree trimming, plant health care, lawn care, and snow removal.

One piece of advice for small business owners: 

"Hire an industry-specific consultant. Then hire a business systems consultant (like Emyth Benchmark). Then hire a marketing firm to help you market your business. Don't reinvent the wheel, buy some advice and let the marketing firm do what you will never have time to do. Then you can just focus on what you love -- running your business."

WISCONSIN: Tom Nieman, Owner Fromm Family Foods

Image credit: Fromm Family Foods

Fromm Family Foods is a manufacturer of pet food and treats that was started in 1904. The company's been family-owned-and-operated for five generations. 

One piece of advice for small business owners: 

"First, you have to be passionate about your business because having your own business is not a job it is a way of life. Second, create (and articulate) your vision for the business and then be relentless in executing your go-to-market strategies and tactics. A solid plan is important; hard work and execution are critical."

WASHINGTON D.C.: Tom. J. Loftus, President, Founder and CEO LS Technologies LLC

Image credit: Tom Loftus

LS Technologies LLC is a full-service program management and technical support services firm, that does work for the U.S. federal government and private commercial clients. 

One piece of advice for small business owners: 

"Growing a business is about taking risks in a competitive environment, while continuing to build and maintain a solid reputation that your company delivers the utmost customer service. And very importantly, any business owners should strive to surround themselves with trustworthy, reliable people who support their company's mission and values." Source: http://www.entrepreneur.com/

[livanaweng]

Google gives startup tips to minority small business owners

Whizzes at Google schooled minority small business owners Friday on how to beef up business by being more tech-savvy.

The event at the search giant’s Chelsea headquarters helped nearly a dozen entrepreneurs increase their online presence and boost advertising.

“It’s so important to have these tools that are self-sustaining,” said Clayton Banks, who co-founded Silicon Harlem, which helped host the event with the Black Googlers Network, Silicon Harlem, Harlem Chamber of Commerce and the New York Urban League.

JAN RANSOMEntrepreneurs get help from Google on how to locate new customers and expand their businesses at an event Friday.

The startup tips helped Hans Mayo, 33, of Brooklyn, tweak marketing strategies for his product Lineapple, a mobile app that allows customers to virtually wait in line at participating stores.

“Right now traditional marketing techniques just aren’t going to work,” Mayo said. Remarketing is a really big trend developing in ad space. It's a way to direct specific content to people." BY  JAN RANSOM  

NEW YORK DAILY NEWS

 Saturday, November 8, 2014, 2:00 AM

[livanaweng]

5 tips for small-business success

In every economic downturn, corporations shed employees to shave costs. And in every economic downturn, many of those let-go employees make lemons out of lemonade by starting that small business they've always dreamed of operating, whether it involves doing what they were doing as an employee or trying something entirely different.

Like all small-business owners, newbies need to start off on the right foot by avoiding legal, tax and financial problems that too often trip up the freshly self-employed. Here are five tips for making your launch successful.

1. Create the right legal structure

One of the first questions every small-busines owner must consider is whether to operate as a sole proprietorship or as a corporate entity. "You automatically start out as a sole proprietorship," says Certified Financial Planner David M. Williams, founding director of Business Enhancement Associates LLC in Cordova, Tenn.

Operating as a sole proprietor costs no money because you don't have to pay to create corporate documents and tax returns. Whether you should continue to operate as a sole proprietor, however, depends on your business and personal risk tolerance.

"We always strongly urge people to set up a corporation because it gives you some legal protection," says Don Mazzella, chief operating officer and publisher at Information Strategies Inc., a Ridgefield, N.J., provider of publications for small businesses. "You'd be suprised at the liability you can engender when you set yourself up as a business owner. People may come at you with litigation or try to dun you for bills. If nothing else, it protects your personal credit rating."

But Williams isn't convinced a corporate entity is necessary for everyone. "I wouldn't say you should run out and form a corporate entity until you know you can be in business for yourself," he says. "It's expensive, but it's also a waste in both time and money. Once you know you can be successful, if you're doing consulting work and are truly the sole proprietor of your company, staying a sole proprietorship is probably best. If there's more than one person with capital involved -- whether that's cash or sweat equity -- form an entity that spells out how much is owned, who is responsible for what, and whether taxes should be paid at the corporate or individual level."

Cost shouldn't be the driving factor in structuring your business. "Many online sources allow you to create a corporate entity for just a few hundred dollars," says Allen Bostrom, CPA, president and CEO of Universal Accounting Center in Salt Lake City, which trains accountants, tax preparers and bookkeepers. "You just put in your information, and they'll create templates." Just a few are Legalzoom.com, The Company Corp., SCORE and Incfile.com.

2. Pay taxes -- if you must

The way you structure your business will provide guidance as to how soon you need to begin paying taxes on your earnings. Though there can be twists, the general rule is that if you operate as a sole proprietorship, you don't need to begin immediately paying taxes. "Going by the letter of the law, if you make more than the de minimus amount of $400, you're supposed to file taxes quarterly," says Williams. "But there are no penalties if during the year you shift from being an employee to being self-employed and you don't make quarterly tax payments." That's not true if you've formed a corporate entity. "Those entities must begin filing taxes on income as they earn it," says Williams. "If you as an entity make money, you have to report it quarterly."

3. Set aside self-employment taxes

When you're an employee, your employer withholds roughly 15.3 percent of your income to fund Social Security. You pay half out of your pocket, and your employer covers the other half. When you're self-employed, you shoulder the entire amount. You don't have to make quarterly payments to cover the tax, but you can avoid getting stung at tax time by setting aside funds to cover those taxes.

4. Think hard about whether insurance is necessary

Few startups have extra capital to spend on insurance they don't really need. Can you save a buck by going without? "In general, you don't need insurance until you hire your first employee, and then you'll need a lot of insurance," says Mazzella. "If you're working out of your home and your only liability is someone tripping and falling during a visit or losing your office equipment in a fire, you can make sure your homeowners insurance covers that. If you're operating outside your home, you'll want a minimim of insurance on your office and assets."

What about liability insurance? That depends on your business. If you're a service provider who's unlikely to get sued no matter how poorly you perform, such as a proofreader or graphic designer, you probably don't need insurance. "We tell our bookkepers that every insurance agent will tell them they need errors and omissions insurance," says Mazzella. "But we've never heard of bookkeepers being sued unless they stole from the business or committed fraud, and no insurance will cover that."

If you sell products, you again have to evaluate your risk. "If you sell bottle corks, your liability would probably be limited to replacing bad bottle corks," says Williams. "If you mass-produce cherry jam, you have the liability caused by people getting sick on your jam or breaking their teeth on a cherry pit. You wouldn't want to self-insure that liability. You'd want product liabliity insurance."

5. Make sure you get paid

What good is being your own boss if you don't get paid for your work? "Wherever possible, collect 10 (percent), 15 (percent) or 25 percent of your fee upfront," says Bostrom. "Your clients' reaction to that request will tell you a lot about whether they're capable of paying you."

Always use contracts, recommends Alan Siege, president and CEO of Small Business Management Consulting in Brooklyn, N.Y. "Specify clearly what the deliverables are and what and when people will pay you -- and make people acknowledge it. By having a contract, you're saying that you play for real and that you're someone whose business people need to take seriously."

By G.M. Filisko • Bankrate.com

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Your Startup Can Thrive Without VC That it Will Probably Never Get Anyway

Everybody believes that running a lean start-up, pivoting when the time is right and raising venture capital are the trifecta of today’s entrepreneurial world, right? Hang on! These days, the rejection rates at accelerators, angels and VCs are off the charts.

YCombinator, 97.2 percent rejected. Only 74 of 2,600 applicants were accepted into their latest cohort.

AngelList, 98.8 percent rejected: Angels are not more welcoming. Of the 85,000 deals listed on the AngelList site in 2013, only around 1,000  won funding, according to The Economist. 

Andreessen Horowitz, 99.3 percent rejected: Of some 3,000 inbound deals a year, 15 to 20 are funded. As Mark Andressen puts it, “Our day job is crushing entrepreneurs’ hopes and dreams. Our main skill is saying no, and getting people not to hate us.”

With these kinds of odds, most entrepreneurs will have to find a better way to start, finance, and grow their businesses. But how?

Customers’ cash. Consider Claus Moseholm, co-founder of GoViral, a Danish company created in 2003 to harness the then-emerging power of the Internet to create and deliver  video content for advertisers in viral fashion. He funded his company’s steady growth with his customers’ cash from the proceeds of one successful viral video campaign after another.

Moseholm and his partners built GoViral into Europe’s leading platform to host and distribute such content. In 2011, GoViral was sold for $97 million, having never taken a single krone or dollar of investment capital. The business was funded and grown entirely by its customers’ cash.

Is customer funding better than VC? In my view, the time and place for VC is when your business is already firing on all cylinders and just needs more fuel to grow. One reason rejection rates are so high is that most of the companies that prospective funders see haven’t gotten anywhere near that point just yet. So if your business isn’t there yet, or maybe won’t get there at all, what should you do?

What the largely unknown Moseholm and the more celebrated Michael Dell and Bill Gates have in common may surprise you. All three of them started and grew their companies largely (entirely, for GoViral) with their customers’ cash. Happily, there are five customer-funded models through which they and many others have done exactly that:

1. Matchmaker models, such as the USA’s Airbnb and DogVacay.

2. Pay-in-advance models like the USA’s Threadless and India’s Via. It’s what Michael Dell did, getting paid in advance before buying the parts for and assembling his customers’ PCs.

3. Subscription models like India’s TutorVista and the USA’s H.Bloom.

4. Scarcity models, for example Spain’s Zara, France’s venteprivee, the USA’s Gilt Groupe.

5. Service-to-product models, including Denmark’s GoViral and Puerto Rico’s Rock Solid Technologies.

Bill Gates and Paul Allen, after getting started as a services business that wrote operating system software for the then-nascent PC industry, transitioned to selling application software like MS Word and Excel in shrink-wrapped boxes.

If you're wondering is these models better than raising VC, face the facts. Sadly, as any experienced VC or business angel will tell you, the Plan A that you have so lovingly conceived is unlikely to work.

Peter Drucker, arguably the leading management thinker of the twentieth century, observed, “If a new venture does succeed, more often than not it is n a market other than the one it was originally intended to serve, with products and services not quite those with which it had set out that are bought in large part by customers it did not even think of when it started and used for a host of purposes besides the ones for which the products were first designed.”

The way forward. If you’re an aspiring entrepreneur, an early-stage entrepreneur or an angel investor, mentor or business accelerator or incubator professional who supports high-potential entrepreneurial ventures, a customer-funded approach may offer the most sure-footed path to starting, financing or growing your business or one you support without investors, at least at the outset.

If all goes well, as was the case for Claus Moseholm of GoViral, once you get started, you may well find a way to go the distance without outside funding. If you do, you’ll end up owning a much larger stake in your business than if you’d taken venture capital. Who kept a greater share of the value his company created, Michael Dell or Steve Jobs? It was Dell, hands down. Source: http://www.entrepreneur.com/article/237027

[livanaweng]

Providing Health Insurance Still a Struggle for Small Business

Brian Adams, who sells fireplaces in Indianapolis, is like many of the nation’s small-business owners. As the cost of providing health benefits has climbed, he has struggled to afford coverage for his employees — a problem the new health care law was designed, in part, to address.

But a year after the law’s introduction of the insurance exchanges, provisions that were supposed to help small businesses offer employee health benefits are largely seen as a failure. And Mr. Adams, like many of his fellow business owners, is sending employees to the exchanges to buy their own coverage instead.

Nancy Smith, who runs the Great Arizona Puppet Theater in Phoenix, made a similar decision. Her business employs only a handful of people who need insurance, and she was able to offer only plans with high deductibles. She and her employees decided buying individual policies made the most sense.

“Everyone wanted to do it because our costs were too high,” she said.

RELATED COVERAGE Is the Affordable Care Act Working?OCT. 26, 2014

Why One Insurer Sees a Growing Market for Small-Business Health InsuranceNOV. 4, 2014

A Builder Swears He’ll Stay at 49 Employees to Avoid the Mandate. Unless He Grows.NOV. 3, 2014

Most of the focus on the Affordable Care Act has been on whether individuals can find affordable coverage through the online marketplaces. But the law also had the goal of creating a robust insurance market for small businesses by making tax credits available to businesses that provide coverage and creating small-business exchanges where companies could more easily find low-cost plans.

Photo

Nancy Smith, center, the director of the Great Arizona Puppet Theater, with two employees.CreditMarissa Roth for The New York Times 

The small-business exchanges were barely functional in most states last year, and it remains to be seen whether the Obama administration will manage to stop the steady decline in the number of employers offering coverage to their workers. The administration is poised to try again when open enrollment begins on Nov. 15.

Federal officials say they do not know how many small businesses signed up for coverage in the small-business exchanges, but the numbers are likely to be very small. In California, for example, only 12,000 people were enrolled through the state’s small-business exchange, compared with more than a million who enrolled as individuals there. To date, few businesses have availed themselves of the tax credits available for purchasing coverage for low-wage workers.

“There’s no denying that the program got off to a slow start in the first year,” said Linda J. Blumberg, a policy expert at the Urban Institute. Federal officials were focused on making sure the individual marketplaces worked, she said.

Experts say it remains an open question whether the program, known as SHOP for Small-Business Health Options Program, will eventually work. “I think it will take a number of years, if it succeeds,” said Jon Gabel, a policy expert at NORC at the University of Chicago. There remains strong opposition from brokers and some insurers, he said, who view it as a threat to their existing business.

Federal officials say they are committed to making the small-business marketplaces work over the next few years; five states are offering businesses early access to the online exchanges this year. Officials say they are making the necessary technical fixes to allow for online enrollment this year since most employers were forced to fill out applications by hand. They also say they are working more closely with brokers and point to the fact that more insurers will be offering plans for 2015.

“Thanks to the Affordable Care Act, millions of small businesses and their employees will have more health care options, increased purchasing power and tax credits worth up to 50 percent of the employer’s premium contributions,” said Ben Wakana, a spokesman for the United States Health and Human Services Department, in an emailed statement.

Businesses with fewer than 50 employees are not required to provide coverage. In all, they employ 34 million people, and the smallest employers are increasingly dropping coverage. Only 44 percent of employers with three to nine workers now offer coverage, according to a September survey by the Kaiser Family Foundation, down from 52 percent a decade ago. Unlike large employers, which typically pay a significant share of a worker’s premiums, 14 percent of companies with fewer than 200 employees do not contribute at all. Most small employers ignored the exchange for 2014. Mr. Adams, for one, said he did not even consider buying insurance under the program. “I don’t know if Indiana had the option,” he said.

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Robert S. Jaffe, far left, of Consensus Systems Technologies, was able to save about $32,000 by going through the exchanges. CreditChang W. Lee/The New York Times 

Insurance companies and brokers say many small-business owners chose to re-enroll employees in existing plans, many of which did not comply with the law’s new rules but allowed employers more time to evaluate their options. “It wasn’t what small employers were clamoring for,” said Rick Allegretti, an executive with Health Care Service Corporation, which offers nonprofit Blue Cross plans in five states and sells plans through the small-business exchange. The insurer is also offering a private-exchange alternative where employers can consider establishing a group plan that can be paid for with pretax dollars but, separately, still have some employees go to the individual exchanges, a move that some critics say is contrary to the intent of the law. WellPoint, one of the nation’s largest insurers, says that it is seeing a significant decline in the number of the smallest businesses continuing to offer coverage. The company reported insuring 300,000 fewer people in small-group plans this year.

“The move is occurring as we expected it to,” said Ken Goulet, a senior executive with WellPoint, which has been seeing these employees buy individual coverage.

Mark T. Bertolini, chief executive of Aetna, another large insurer, told analysts in July that although the company was not seeing “a lot of dumping,” he did not think the market was “sustainable over the long term as small-group employers stop offering coverage.” Aetna recently teamed with Sam’s Club, a unit of Walmart Stores, to also offer a private exchange for small businesses.

For the very smallest businesses, sending workers to the individual exchanges can make the most financial sense. “You can’t expect those people to continue to offer” coverage, said Gary Claxton, an executive for the Kaiser foundation. While workers who are sent to the individual exchanges must buy their policies with after-tax dollars, he said, many qualify for federal subsidies that lower the cost of coverage enough so they can afford it.

The public small-business exchanges, however, are the only way employers can now avail themselves of the tax credits available, and a recent analysis of the plans by Mr. Gabel of NORC showed them to be less expensive, on average, than the ones available outside of the exchanges.

And some employers say they have clearly benefited. Robert S. Jaffe, president of Consensus Systems Technologies, in Shenorock, N.Y., was able to save about $32,000 by going through the exchanges to buy coverage for six employees. He chose Health Republic Insurance, a new co-op plan created under the law, for people who lived in the area. While he was initially concerned about the insurer, he says he was reassured by the care it gave a worker needing a liver transplant.

But some employers have been unimpressed with the options available through the marketplaces. “What I see on the exchange is junk,” said Bill Frerichs, the owner of Frerichs Freight Lines in Belleville, Ill., a trucking business. He opted to stay with the coverage he had from Coventry Health Care, owned by Aetna.

But even some of those who have taken advantage of the law to continue providing coverage say they worry about the future. Annie Grove, who along with her husband, Matt, owns Bagel Grove in Utica, N.Y., has about 20 employees, some of whom are covered under Medicaid. She offers a high-deductible plan to six of them, including herself, and uses the tax credit to help pay for about half of the cost. Ms. Grove says she is still unsure how long she will be able to pay for coverage, especially when the tax credits expire after two years and she can no longer use the money for premiums.

“My biggest concern is when the tax credits go away,” she said. By REED ABELSON Source http://www.nytimes.com/

[livanaweng]

10 Tips to Help You Build and Grow a Stand-Out Small Business Brand

The United States loves small businesses – it’s official! That’s according to a survey by the Pew Foundation (reported here on SmallBizTrends) which found that 71 percent of Americans view small business more favorably than any other institutions, including religious organizations.

Why is this? Well, small businesses are seen as a positive influence “on the way things are going in this country.” But it’s more than that.

Small businesses are in a unique position to create valuable customer experiences. Their products and services are often niche; the target customer is very defined; and business operations are agile and unconstrained by corporate rules and processes. Small businesses are also trusted for their integrity, community engagement and customer service. When was the last time you called a small business and got put through to an automated call center? These seemingly small things come together to create a hugely competitive value proposition – and are the lynchpin of your brand.

But what can you do to leverage these experiences and grow the appeal of your brand – without breaking the bank? Here are 10 tips that can help.

1. What is Your Brand?

First, it’s important to understand that your brand is much more than your logo, merchandising or products. As I mentioned above, it is about the sum total of the experiences customers have with your business. This includes the visual elements of your business, but it also includes what you do, how you do it, what your customer interactions are like, the type of information you share in your marketing and on social media. All these elements help establish the trust and credibility of your business.

2. Stand Out

Standing out means being different. If your brand is going to be strong, you need to be able to pinpoint what it is that makes what you do unique. What differentiates you from others in your industry? Read 5 Tips for Using Competitive Differentiators to Build Your Business Brand. Don’t forget to weave your differentiators into your company’s messaging and marketing. Here are some tips for doing that: 7 Tips for Getting your Marketing Message Right.

3. Have Great Products and Services

Word of mouth is often a small businesses greatest lead generator, so having great products and services that people talk about is a critical part of your brand and why you are in business.  Even the most outgoing and charming small business owner is not going to succeed in bringing customers back, unless the product or service they provide delivers and exceeds expectations. Don’t lose sight of your product – keep refining it, testing new offerings, and making sure you always put product first, not the money it brings in.

4. Make Sure Your Customers Know the Face Behind the Product

One of the biggest reasons that small businesses fail is because of the persistent absence of the business owner. You only need to look at a few episodes of business makeover TV shows like Ramsay's Kitchen Nightmares and Tabatha Takes Over to witness what can go wrong if a business is left to run itself. Without an actively engaged owner, employees lose motivation and structure, which can quickly lead to sloppy service, a poor product and customer churn. Yes, your business needs to be able to function without your constant presence, but it’s important to strike a balance – find ways to make sure your customers know you and connect with the face behind the business. Businesses really thrive when the energy of the owner is there.

5. Get Your Name and Logo Right

This is essential to brand recognition and it’s important to get it right the first time (changing your name and logo can be costly down the road). Your logo and name should be easily recognizable and reflect the nature and tone of your business as well as appeal to your target market. I’m a dog owner, and two of my absolute favorite small businesses cater to pet owners – Woofies (my local provider of dog walking services) and Doggone Natural (a healthy pet food store). The names and logos of both these businesses reflect the personality of their brands, what they stand for, the products they offer, their market (people and their pets) and the overall tone of their businesses. When I see their logos, it makes me feel good; I feel an affinity with them – and that’s what you need to shoot for.

6. Have a Distinct Voice

A great way to ensure your distinct brand message is delivered consistently across your business is to focus on how you and your employees interact and communicate with customers – in-person, on the phone and on social media. Not sure what your “voice” should be? Look to other brands. What do they do that you’d like to emulate? How do they greet and interact with you? What is it that they do that makes you feel good about doing business with them?

7. Build Community Around What you Do

A successful brand is one that is trusted and respected by customers – building a strong community online and off can help you achieve this.

You don’t have to spend a lot of money to do this. In fact, many successful brands concentrate almost exclusively in online and offline community building as opposed to traditional advertising. Facebook and Twitter are great outlets for this, as is your blog. Offline participation in community activities such as local events, fundraisers, charities, as well as hosting your own events such as workshops or loyal customer events, can all help you build community and extend the trust you’ve earned to your brand.

8. Be an Advocate for Your Business – Not Just a Salesman

You don't have to be the greatest salesman to succeed in business. Selling takes many forms – and being a brand advocate gels them all together. For example, many small business owners strive to be the number one salesman, the number one cheerleader, and the number one fan of their own business (you’ve got to be excited about it if you want others to be excited too). If you are passionate about your business, be an advocate for it. Use many of the tips in this blog to make sure people understand what you do, the story behind your products, what your products have done for people, your methods and mission, and all that good stuff. Invite people in!

9. Be Reliable

Letting your customers down by failing to live up to your own promises and brand standards can be particularly harmful for small businesses that depend heavily on referrals. The foundation of brand loyalty lies in great service – a happy customer is a loyal customer. So make sure you aren’t making promises that you can’t keep – whether you run a pizza business and pledge to deliver within 30 minutes, or are a painting contractor who promises to start a job on a Monday at 9:00 AM sharp. Stand by your promises.  

10. Have a Value Proposition

Value, not to be mistaken with price, can help define your brand and differentiate you from the competition. This goes back to my second point about standing out. What niche do you serve? What do you do well in that niche that makes you different from everyone else? What are the emotional benefits of what you do? The answers to these questions will help define what your value is to your customers – it could be your great customer service, product quality, innovation, or any combination of these.

By Caron_Beesley, Contributor Source: http://www.sba.gov/blogs/

[livanaweng]

Tips for a Successful Small Business

Write a business plan, any business plan 

You have a passion, and you'd like to make it your profession. No matter how enthusiastic you are about your small business, though, it won't be successful unless you have a plan in place for how you're going to start and run it.

It doesn't matter how long or detailed your plan is, as long as it covers a few essential points. Most successful small businesses will need to have a break-even analysis, a profit-loss forecast and a cash-flow analysis. A cash-flow analysis is especially important since you could be selling your products like hotcakes, but if you won't be paid for six months, you could still run out of money and have to close your doors.

A business plan is essential because it allows you to experiment with the strategy for your business on paper, before you start playing for keeps.

Determine how you'll make a profit 

Profit is, after all, the ultimate goal of any successful small business. You should examine your business' expenses (rent, materials, employee compensation, etc.) and then figure out how much you will need to sell to cover those costs and start generating a profit. This is known as a break-even analysis.

Start with as much of your own money as possible 

Many small business owners cover their start-up costs entirely through loans, with the expectation that they will begin paying back the loans with the profits from their new business. New businesses can take months or years to generate a profit, however, and loan payments can really become a millstone around the neck of a fledgling operation.

If you can save up as much of the start-up capital yourself before you open your doors, you will help ensure that loans won't sink your new business. Remember, also, that there's an outside chance that a lender will call a loan or add unfavorable terms if your business isn't as successful as you initially planned. If you provide as much of the start-up money as possible, it will lessen the odds of a nasty surprise like this hindering your business.

Protect yourself 

Most small businesses are sole proprietorships or partnerships. While these types of businesses are nice and easy to form, they also expose their owners to liability for business debts and judgments. Creditors and judgment holders can come after the owners' personal assets, like savings accounts and homes, once the business' money is depleted.

While insurance can reduce this liability somewhat, it's worth it to consider forming a corporation or limited liability corporation (LLC). These business structures will shield owners from personal liability, but there are more rules and requirements associated with them.

Start small 

Everyone wants their small business to be successful, with multiple locations, lots of employees and loads of revenue, but you have to learn to walk before you can run. Don't spread yourself too thin or take on too many expenses at the beginning, especially if your income might take a while to catch up to your ambitions.

By starting small, you ensure that you can survive the inevitable hiccups associated with running a small business. Those entrepreneurs who begin with modest operations can recover and learn from their mistakes without taking on a lot of debt. Starting small will help your small business grow into a successful enterprise.

Get it in writing 

While, it's nice to do business with a handshake, there's no substitute for a well-written contract. Indeed, many contracts are not valid unless they are in written form. The exact number of this type of contract varies between states, but here are a few common examples:

Sales of goods worth more than $500

Contracts lasting more than a year

A transfer of ownership in copyrights or real estate

While contracts can be valid when orally made, they are much harder to prove and enforce. Make sure you get all agreements in writing -- it will save you headaches down the line, and could even save your business.

Keep your edge 

There are many ways to gain a competitive edge over other businesses in your industry: you could have a better product, a more efficient manufacturing or distribution process, a more convenient location, better customer service, or a better understanding of the changing marketplace.

The best way to hold onto your competitive edge is to protect your trade secrets. A trade secret is that information that isn't known to others that gives you a competitive advantage in the market. There are many kinds of trade secrets, and trade secrets receive legal protection as long as their owners take steps to keep them secret. Those steps could be anything from marking confidential documents to requiring partners and employees to sign nondisclosure agreements.

Another way to hold onto your competitive edge is to stay proactive. If you know that your business is going to face challenges or encroachment by a competitor, don't wait to react -- plan ahead and you'll stay ahead.

Hire the right people 

Don't just hire the first person to come along with the basic qualifications you need. Look for someone with motivation, creativity and the right kind of personality to make it in your industry and fit in with your business. Then, once you've found that person, treat them well, engage them and make sure that you create the environment that they will thrive and give their all in.

Make sure you create the right kind of employee relationship 

Lots of businesses try to save money by hiring people as independent contractors rather than full-time employees. The IRS will impose large penalties on businesses that do not withhold and pay taxes for workers that it considers full-time employees rather than independent contractors. Here are some things the IRS will look at to determine whether a worker is an independent contractor or a full-time employee

:

The worker performs tasks that are essential for your business

The worker only works for your business

The worker works 40 hours a week, or nearly 40 hours

The worker receives instructions and training from you, and you exercise control over how the worker does their job

Also be sure to create an "at-will" relationship with your employees. Employers can terminate at-will employees for any reason, which is essential if an employee isn't working out. There are many ways to make it clear that the employment relationship is at-will, including in employee handbooks and through offer letters. Don't make any promises to employees about the length or terms of their employment, as these could become binding on you later.

Pay your bills and taxes on time 

It should go without saying, but it's important to pay what you owe -- especially when dealing with the IRS. The IRS can impose harsh penalties and even come after a business owner's personal assets if the owner doesn't remit payroll taxes on time.

It's also important to pay your regular debts in a timely fashion. If you get a reputation for stalling on a debt, you could find it difficult to form business relationships in the future. Plus, if you stay current on your debts and pay them as you incur them, it will help you avoid being overwhelmed by cash flow problems if several debts come due simultaneously.

Source: http://smallbusiness.findlaw.com/starting-a-business/tips-for-a-successful-small-business.html#sthash.PudTXOdl.dpuf

[livanaweng]

Top 5 Small Business Financing Mistakes

Running a small business is an all-consuming endeavor, and many small business owners and entrepreneurs are often so busy running their businesses that they don’t slow down and pump the breaks when it comes to weighing all of their financial options. Avoid making these five common small business financing mistakes that could wind up costing you time and money.

1. Not Doing the Research

Not doing research on all loan options before seeking a loan is one of the biggest mistakes a small business owner can make. You wouldn’t blindly buy new packaging for your product in bulk from one company without comparing prices and materials with other companies, and the same logic should apply for seeking a loan. There are hundreds of loan programs available to small businesses. Start by considering the ones that will offer you affordable money with reasonable interest rates and long amortization periods. If you don’t qualify for these types of loans due to lack of credit, poor financials, or limited collateral, then you may research options within the alternative lending space. Not knowing your options can end up costing you significantly more money in the long run, so it’s best to put the time into doing the research up front. For example, jumping into a cash advance because the money is fast and convenient could easily have you paying back much more money over time than if you considered a U.S. Small Business Administration (SBA) loan, purchase order financing, or another loan program before signing on the dotted line for the merchant cash advance.

2. Seeking Too Much Money

To me, this is a no-brainer: only borrow what you need. But for many small business owners, visions of grandeur and 10-year plans cloud their judgment when it comes to determining how much money their business really needs. A loan should be seen as more of a bridge than a permanent solution. Borrowed money should carry you into the next stage of your business, not be a crutch to get you through the next 10 years. Borrowing a large sum of money may financially strap your business long term, while borrowing a smaller amount of money will decrease the monthly payments and the number of years you’ll be paying off the loan. Before committing to a large loan, think about how much money you actually need, and more importantly, what your business can afford to pay back. A business loan can affect your day-to-day operations either positively or negatively depending on how much you borrow.

3. Placing All Trust in Your Partner

A business relationship is like a marriage. Without equally sharing responsibilities, being on the same page with financial obligations, and having open communication and similar visions for the future, both types of relationships are likely to fail. Before taking on a business partner, you should vet your potential partner to make sure he or she is a good fit for you and the business. Your potential partner will likely be doing the same to you, as should be the case. Take your time in considering a business partner by looking into his or her past employment, experience with running a business in your industry, how his or her home life will affect your working relationship, and how committed you think he or she will be to the long-term goals of the company. If a business partnership doesn’t seem like it will work, it’s best to break ties early on before both of you are legally and financially bound to the business. This same type of logic also should be applied when seeking investors or lenders. There are thousands of options for small businesses when it comes to investors and lenders, and not all of them will be the right fit for you and your business. Ask loan officers about their personal approval rate within their company and their history with businesses in your industry. Ask potential investors about their previous investments and what their involvement will be in helping your business grow. Lenders and investors will be interviewing you to see if you’re a good fit for them, and you should feel comfortable approaching them in much of the same manner.

4. No Emergency Cash Stash

When the business is growing and cash flow is steady, take time to not only appreciate the successes, but also set aside an emergency cash stash for the future. Too many businesses dip into their profits for unnecessary purchases or increases in salaries without putting money into an emergency fund that could help the business should an unexpected circumstance arise. Reinvesting in your business is critical, but so is staying out of debt (if possible) and keeping a business running smoothly even in the face of adversity. An emergency cash stash will come in handy should you experience a rough patch or slow season. It’s recommended that small businesses aim to set aside enough cash to operate for six months to a year should the business need this crutch. Even if this cash stash won’t cover all of your operating expenses should an emergency arise, it will greatly reduce the amount of borrowed money you need to seek if a loan is necessary.

5. Being Disorganized

Out-of-date, disorganized financials are one of the biggest roadblocks both borrowers and lenders deal with when it comes to financing. If you don’t have your financials current and accessible, it can seriously hinder your chances of receiving financing for your business. When business financials aren’t up-to-date, there are holes in balance sheets or missing tax information. Potential lenders may see this as a sign of poor money management and hesitate to lend you money. After all, if you can’t stay current on your payments, invoices, receipts, and tax financials, how likely is it you’ll remain current on your loan payments? To make sure your financials are current, take time each week to review and update your balance sheets, accounts receivable, current liabilities, and profit and loss statements. As a small business owner, you should be able to intelligently discuss these financials, especially when seeking a loan.

Source: http://www.sleeter.com/blog/2014/07/top-5-small-business-financing-mistakes/

Credit: Ami Kassar