Small business doesn’t get much smaller than freelancing, but freelance issues don’t come much larger than health insurance. In the past, a freelance writer, artist, or other practitioner basically had two paths to health insurance – a costly standalone policy from a private provider or family coverage from a spouse’s employer. But for many of the 42 million freelancers in the U.S. today, those “paths” often meant going without coverage. Read the full entry
If you’ve considered applying for a small business loan to grow your business and pay for your business expenses, you may be wondering why your personal credit is so important – and how lenders use it when you apply for small business loans. Let’s talk about the basics of how a lender uses your personal credit profile when deciding if they will approve or deny your small business loan applications. Lenders determine your creditworthiness using five major factors from the credit report: Read the full entry
Freelancers inhabit a nebulous grey area of employment. They don’t exactly work for someone else, but most freelancers wouldn’t call themselves their ‘own boss’ either. I work with a lot of freelancers, and the most common question they ask is whether or not they should form a business. The answer, of course, is that they are already had. The minute they started selling their services as a freelancer, they started a small business – at least in the eyes of the IRS. Any income earned as a freelancer is reported as business income, and freelancers are responsible for self-employment taxes. Since freelancers are already entrepreneurs, I often recommend they treat their budding business as any other sole-proprietor would. Read the full entry
If you are a new entrepreneur in need of startup business financing, it’s important to know the three biggest small business financing mistakes made by entrepreneurs in their first 1-2 years. Knowing and understanding these mistakes will empower you to make the right decisions. The small business financing world can be complicated and confusing for entrepreneurs and small business owners. It has not only changed dramatically since The Great Recession but it’s a daunting terrain that is constantly changing.
Most new entrepreneurs are often “solopreneurs” that have one or two employees, including themselves. According to statistics complied by Clate Mask, approximately 83% of small business owners are solopreneurs. The three biggest startup business financing mistakes made by new entrepreneurs are often made by solopreneurs and the information outlined here will be particularly beneficial for this group of people (specifically those who are seeking debt financing). So for all of the solopreneurs out there, what are the three biggest startup business financing mistakes that you make? Read the full entry
For small businesses nowadays, it’s not uncommon for many employees to work virtually; your IT manager could be in California, your sales reps could be scattered throughout the Midwest, and your marketing specialist could be in Vancouver. This approach helps small businesses increase employee productivity and creativity while decreasing discontent and complicacy.
While there are many advantages to this model, it also presents some challenges. If you can’t see what your employees are doing, it’s easy to draw the conclusion that they aren’t contributing effectively. Also, no matter how advanced your technology, sometimes face-to-face communication is just easier and more effective. Lastly, remote employees are a risk to your company’s network security. Each business is different, and it’s important to weigh the pros and cons of remote employees. However, no matter what side you’re on, one thing is clear: more people are working remotely than ever before, and the numbers are expected to increase in the future. Read the full entry
Numerous business and financial website publications forecast that business optimization is on the rise for 2014. If you manage a small or mid-sized business, things are looking up for you this year. The state of the US economy is improving through expansion and the unemployment rate continues to decline. In the 4th quarter of 2013, the US Labor Department reported that more jobs were created in the economy since the initial decline, decreasing the unemployment rate to an all-time low of 7 percent. This, combined with consumer earnings, factory spending and international trade, is working together to inspire warranted optimism in business owners regarding overall economic growth. Read the full entry
First-time corporate founders are often a bit stunned at the various taxes, regulations, and fees that they have to contend with as the owner of a new business, and franchise taxes are chief among the more confusing obligations. Around half of all states collect franchise tax, and yet so few people have actually heard of a franchise tax. Not wanting to give the state any money they don’t have to, many new corporate owners often ask my company to explain what a franchise tax is, and why their business is being forced to pay it. To clear up some misconceptions about franchise taxes, I decided to write up a quick FAQ for the three most common questions I get asked. Read the full entry
In a word – yes. In a litigious society such as the one we live in, not even a small business should go without liability coverage. Why? It’s all about risk. You might call them customers or clients or employees right now. But there’s always the scary chance you’ll have to call them plaintiffs some day – in a lawsuit against you.
Commercial liability coverage can assist you in case you find yourself in a courtroom. It can help pay for your legal defense as well as any award or settlement made in the case. Of course, different businesses operate with different risks, so you don’t necessarily want a one-size-fits-all solution. That means you should talk your coverage over with a trained, independent agent who can give you the industry perspective on your risk and how you can manage it. Read the full entry
Cost-plus pricing is the most basic form of pricing. Most people, who sell products or services, use the cost plus method to price their goods or services. So what exactly is cost-plus pricing? Read the full entry
According to the Pepperdine Private Capital Access Index, 59% of small business owners admitted to having difficulty in finding and securing funding for their startup venture. As a small business owner, hunting down capital for startup or operational costs can sometimes be tricky and burdensome. Finding the right type of funding is critical in your search for business credit, but it further complicates the hunt. Should you fish for an SBA loan or go the more alternative route with crowdfunding?
Although hard-to-catch, we’ve hunted down the most common lenders and loans in the country, and made this valuable information available for download in our Small Business Loan Report.
You’ll understand how to trap one of these slippery suckers along with getting full insight into the various types of funding at your disposal. Download the free report here and fund your business the right way.