Small Business News #3
The Latest on Unemployment
The Bureau of Labor Statistics released its Employment Situation Summary today. Key points include:
- Unemployment rate remains at 9.7%
- Employment fell in construction and information, while temporary help services added jobs.
- Average hourly earnings increased by $0.03.
According to a Business Week report, the smallest businesses may be adding jobs. “..data from payroll companies suggest that losses at the smallest businesses have stopped and those businesses are beginning to hire,” wrote John Tozzi.
*Have you hired new employees this year?
Tax Time
April 15 is the deadline for filing taxes and news related to taxes is abundant, from the governments’ cracking down on small business owners misclassifying workers as independent contractors, to tips on getting small business tax deductions and “loss carry back.”
What’s Your News?
What’s new with your small business? Feel free to leave a comment below.
Small Business News # 2
New Plans for Small Business Lending
President Obama has announced plans to increase the limit of the Small Business Administration’s express Loans. The current limit for these loans is $350,000; Obama would like to increase this limit to $1 million.
The SBA Express program features “an accelerated turnaround time for SBA review.” Through this program, responses to applications are given within 36 hours.
Unemployment Rate Falls Slightly
Today, the Bureau of Labor Statistics released its Employment Situation Summary for January, 2010. This report features employment information, household survey data, establishment survey data, as well as changes to the employment situation text and tables, revisions to establishment survey data and adjustments to population estimates for the household survey.
Key Points
· Unemployment rate fell from 10.0 to 9.7 percent.
· Nonfarm payroll employment was “essentially unchanged.”
· Employment fell in construction, transportation and warehousing.
· Temporary help services and retail trade added jobs.
Is Social Media Affecting your Credit?
According to Miranda Marquit, a blogger for allbusiness.com, credit companies are beginning to look at your social media profiles to determine your credit worthiness. “In their quest to identify creditworthy customers, some are tapping into the information you and your friends reveal in the virtual stratosphere,” wrote Erica Sandberg, for creditcards.com. Read the full stories here and here.
Small Business News #1
It’s a brand new year and it’s time for a brand new edition of small business news. It may be only January but there’s a lot going on in the world of small business. Here’s what’s happening now!
Job Cuts
According to a report released by payroll-processing firm Automatic Data Processing, small businesses cut 25,000 jobs in the month of December. This is the 23rd consecutive month of cuts for small businesses; however, it is the lowest number of jobs cut since July 2008.
Many small business owners are attempting to expand their businesses, which would require hiring more employees. Unfortunately, bank lending has yet to rebound, leaving a significant amount of these small business owners without the funds they need to expand and preventing them from hiring additional employees.
Suggestion:
Small business owners searching for business funds to expand their businesses and hire additional employees should apply for a business cash advance. They can get up to $500,000 which can be used with no restrictions. These funds could improve their businesses and potentially improve the economy, helping to lower unemployment.
Pay Increases
Based on the findings from individual surveys conducted by five different companies (Conference Board, Hewitt Associates, WorldatWork, Watson Wyatt Data Services and Mercer) salaries are poised to increase in 2010.
Each survey projected employee pay increases from 2.6% to 3.3%
Do you plan to increase your employees’ pay this year?
Current Small Business Bestsellers at Barnes & Noble
1. E-Myth Revisited : Why Most Small Businesses Don’t Work and What to Do about It by Michael E. Gerber
2. QuickBooks 2010 The Official Guide by Leslie Capachietti
3. The Small Business Owner’s Manual: Everything You Need to Know to Start up and Run Your Business by Joe Kennedy
4. Power of 2 : How to Make the Most of Your Partnerships at Work and in Life by Rodd Wagner
5. Training Camp : What the Best Do Better Than Everyone Else by Jon Gordon
Top Small Business News Stories of 2009
Instead of offering you the latest news in small business, this last Small Business News post of the year will be dedicated to the most entertaining, informative, shocking and inspirational small business news stories of 2009. This list is compiled from blogs, websites, newspapers, magazines, etc. that all have one thing in common, small business.
Business Credit Cards’ Turn for the Worse
As the Consumer Credit Protection Act aimed to protect consumer credit card holders, credit card companies aimed to make up for soon to be lost money by cutting lines of credit, raising interest rates, and closing accounts of small business credit card holders.
This couldn’t have happened at a worse time. Bank lending had already virtually come to a standstill and many small business owners were relying on business credit to keep their businesses alive. Many small business owners were suddenly forced to make drastic decisions regarding their businesses.
Boosting Local Business
In August 2009, CNN Money ran a story titled “The People’s Stimulus Package.” In this article, six small businesses that created their own “grassroots stimulus” efforts were profiled. An entrepreneur that stood out of the pack was a pharmacy owner who handed out $16,000 in bonus money to his staff and told them to give 15% to charity and spend the rest locally. He gave out the money in $2 bills, so they could actually see the money circulating throughout the community.
Small Business Reading
Inc. recently released its list of the best books for small business owner of 2009. Below are five of the 14 books.
- Getting to Plan B – by John Mullins and Randy Komisar
- Outlier – By Malcolm Gladwell
- Exploiting Chaos: 150 Ways to Spark Innovation During Times of Change – by Jeremy Gutsche
- How the Mighty Fall and Why Some Companies Never Give in – by Jim Collins
- Crush it! Why Now is the Time to Cash in on Your Passion – by Gary Vaynerchuck
Confidence Among Chief Executives has Jumped this Past Quarter
Based upon the Business Roundtable’s economic outlook index; confidence in US economy has jumped from 44.9 last quarter up to 71.5 this quarter as CEO’s anticipate increased capital spending and a boost in consumer sales. However these same executives don’t expect the job market to improve much over the next several months.
“The economy is in the throes of a long transition back to health; recovery will be long, extending beyond 2010,”said Ivan Seidenberg, chairman of the Business Roundtable.
The consensus among CEO’s is that they anticipate the US economy to grow approximately 1.9 percent next year. Based on the US commerce Dept., corporate profits grew a staggering 13.4 percent this quarter, making it the strongest performing quarter since 2004.
Among CEO’s, Healthcare is their number one concern, with a full third of them worried about rising cost of health insurance and how it will affect growth.
“This underscores the urgent need for the right kind of health care reform that can achieve real and permanent cost reductions,” Mr. Seidenberg said. “Without reform, these costs will continue to weigh down the economy and hinder job creation when we need it most.”
President Obama has been pushing health care reform along with plans to stimulate job growth, something that our economy is still struggling with. This past Tuesday he offered a series of initiatives that he hopes will get people into jobs and help small businesses which have been hit particularly hard. Some of these initiatives include tax cuts for small businesses and infrastructure spending.
Learn about Small Business Loan Alternatives
Small Business News #5
Celebrate the good news!
Top Five Books on Amazon in Small Business and Entrepreneurship as of December 4, 2009
- Put More Cash in Your Pocket: Turn What You Know into Dough – Loral Langemeier
- Crush it! Why NOW is the Time to Cash in on Your Passion – Gary Vaynerchuck
- Getting Things Done: The Art of Stress-Free Productivity – David Allen
- Good to Great: Why Some Companies Make the Leap…and Others Don’t – Jim Collins
- The 7 Habits of Highly Effective People – Stephen R. Covey
Jobless Rate Down
The Bureau of Labor Statistics reported that the unemployment rate for the month of November dropped from 10.2% to 10%. “Employers in the U.S. cut the fewest jobs in November since the recession began and the unemployment rate unexpectedly fell…” as written in an article on Business Week’s website.
In addition to the declined unemployment rate, the average work week in November grew to 33.2 hours, compared to 32 hours in October and average weekly earnings increased to $622.17.
Business Ownership on the Rise
Business ownership is becoming a popular choice, especially amongst people who have lost their jobs due to the downturned economy. “Self-employment rates have been growing at an average of 4.5 percent annually most of this decade, adding roughly 1 million people per year, and they are expected to keep pace or spike when the 2008 and 2009 numbers are released, as stated on msnbc.com.
Small Business News # 4
Unemployment Rate Reaches 10.2%
The Bureau of Labor Statistics reported that the U.S. unemployment rate reached 10.2% in October. According to news sources, this is the first time unemployment rates have passed 10% since the Great Depression, which began in October of 1929 and lasted at least a decade.
Business Credit Card Rate Hikes
According to Gerri Detweiler, a financial education expert and co-founder of the website BusinessCreditSuccess.com, business credit card issuers are cutting credit lines, raising interest rates and even closing accounts, as stated on All Business.
A bill that was recently passed to amend the Consumer Credit Protection Act is most likely to blame for this phenomenon. This law only protects consumer credit cards and according to various sources, credit card issuers are trying to make up for losses via business credit cards.
Some small business owners have been forced to close their credit cards while others have had their lines cut. Still, other options, such as the business cash advance, exist for effected small business owners.
Top Five Books on Amazon in Small Business and Entrepreneurship as of November 6, 2009
- Crush It!: Why NOW Is the Time to Cash In on Your Passion by Gary Vaynerchuk
- Getting Things Done: The Art of Stress-Free Productivity by David Allen
- The Five Dysfunctions of a Team: A Leadership Fable (J-B Lencioni Series) by Patrick Lencioni
- Good to Great: Why Some Companies Make the Leap… and Others Don’t by Jim Collins
- The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich by Timothy Ferris
Small Business News # 3
SBA Loans Easier to Get?
The Obama administration has announced new initiatives to help increase lending to small businesses. The Small Business Administration and the Treasury Department plan to increase the maximum sizes of 7(a) loans, 504 loans and microloans.
**Note: Small business owners who do not qualify for SBA loans may apply for unsecured business cash advances. Furthermore, merchants who already have bank loans may use business cash advances as additional funds.
America’s Top 10 Small Public Companies
Forbes recently released its list of America’s top 200 small companies. “Our list of the 200 Best Small Companies in America begins with a search for companies that show both sales and earnings growth,” wrote Kurt Badenhausen and Christina Settimi. The top 10 on the list are as follows:
- Lumber Liquidators
- Allegiant Travel
- Quality Systems
- LHC Group
- Green Mountain Coffee Roasters
- Transcend Services
- Rackspace Hosting
- NVE
- American Public Education
- American Science & Engineering
Small Business Reading
Top five books in “Small Business and Entrepreneurship” on Amazon, as of October 23, 2009:
1. The Big Book of Small Business: You Don’t Have to Run Your Business by the Seat of Your Pants - Tom Gegax and Phil Bolsta
2. Small Business For Dummies (For Dummies (Business & Personal Finance)) – Eric Tyson and Jim Schell
3. Small Business Start-Up Kit – Peri Pakroo J.D.
4. How to Succeed as a Small Business Owner … and Still Have a Life – Bill Collier
5. The Small Business Owner’s Manual: Everything You Need To Know To Start Up And Run Your Business – Joe Kennedy
Small Business News #2
Young Entrepreneurs
Inc. released its 30 under 30 list of the top entrepreneurs under the age of the 30. Featured in the list are John Goscha, Jeff Avallon and Morgan Newman who create IdeaPaint, “…a paint that essentially turns any smooth surface into a dry-erase writing surface,” allowing users to brainstorm directly onto walls without the need for a dry-erase board, and wipe it clean when finished.
Also included in the list is a 13-year-old girl who developed Snap Caps, uniquely designed bottle caps that can be worn “…on necklaces, in hairpins, or as bracelets.”
Banks are Urged to Straighten Up
According to Fortune, federal bank “watch dogs” have sent out 29 letters calling for prompt corrective action for the year through August, when last year, they only sent out seven for the same time period. “A prompt corrective action letter comes when regulators determine a bank has become undercapitalized, meaning it doesn’t have a big enough cushion against future losses,” wrote Collin Barr.
Small Business Reading
Top five books in small business and entrepreneurship on Amazon, as of October 13, 2009:
- Getting Things Done: The Art of Stress-Free Productivity by David Allen
- Seven Habits of Highly Effective People, Miniature Edition by Stephen R. Covey
- The Five Dysfunctions of a Team: A Leadership Fable (J-B Lencioni Series)
- Good to Great: Why Some Companies Make the Leap… and Others Don’t by Jim Collins
- The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich by Timothy Ferris
Small Business News – #1
Arc Loan Status
The America’s Recovery Capital program was designed to aid small business owners whose small businesses have been negatively affected by the recession. These loans of up to $35,000 are backed by the Small Business Administration and can be used by business owners who have owned their businesses for at least two years. The loans should be used to pay off existing debt.
ARC Loans have been available for small business owners since June 15, 2009. Nevertheless, according to CNN Money, the program has just recently begun to pick up. “…the ARC loan program has backed 2,715 loans totaling just over $88 million, with an average loan size of $32,425, according to the latest data from the Small Business Administration,” writes Catherine Clifford for CNN Money. “That’s a sharp pickup from where the ARC program stood last month, when it had 400 participating lenders and around 1,000 completed loans.”
However, also according to the article, many small business owners are still having trouble getting their hands on these loans; particularly because many big banks have been slow to offer ARC loans.
Maybe these small business owners should consider getting a merchant cash advance instead. What do you think?
Small Business Reading
A small business owner is always learning; and reading is a great way to learn. Below are the top five books in small business and entrepreneurship on Amazon, as of October 1, 2009.
- Good to Great: Why Some Companies Make the Leap…and Others Don’t – By Jim Collins
- The Five Dysfunctions of a Team: A Leadership Fable – By Patrick Lencioni
- The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About it – By Michael E. Gerber
- Fish! A Remarkable Way to Boost Morale and Improve Results – By Steven C. Lundin
- The One Minute Manager – by Keneth H. Blanchard
Small Business Owners Optimistic about Economy
According to a survey released by Chase Credit Card Services, four out of five small businesses are pursuing a moderate or aggressive growth strategy and 75% of the surveyed companies believe their businesses will be doing better in three to six months.
In the survey, 168 chief and senior executives from the annual Inc. 500/5000 list of fastest-growing small companies were questioned. Source – MSNBC
