Small Business News #4

It’s difficult to keep track of small business news, as you have a business to run yourself.  That’s why we compile some of the biggest small business news stories from all over the web, allowing you to easily and conveniently stay updated.

How New Health Care Plan Could Affect Your Business

According to an Inc.com report, “The healthcare reform…will bring drastic changes to the way small businesses buy and supply health insurance.”  Below are some key points from the report.

• By 2014, states must set up Small Business Health Options Programs, essentially purchasing pools where small businesses can club together to buy insurance.

-          Companies that outgrow the size limit will be grandfathered in.

• Companies with fewer than 50 workers won’t face penalties if they don’t offer insurance.
• Companies with 25 or fewer employees and a work force with an average pay of up to $40,000, can get tax credits to help buy insurance.
• Full credits will be available for the smallest firms with the lowest-paid workers (10 or fewer employees and average yearly wages of less than $25,000).
• Most of the provisions of the $940 billion legislation won’t kick in until 2014.

Employee Stock Ownership Plans Increase in Popularity

An Employee Stock Ownership Plan is a plan that allows employees to own stock in the company they work for.  According to BusinessWeek, this method has increased in popularity, mostly as a result of the recession. “ESOPs have become a more appealing way for owners to cash out their equity because the downturn has lowered what most companies would fetch in a merger or acquisition,” said Jude Anne Carluccio, a partner in the Minneapolis law office of Barnes & Thornburg and chairwoman of the firm’s ESOP Practice Group (BusinessWeek).

*There were 11,400 ESOPs in the U.S. in early 2009, up about 400 over 2008 and 800 over 2007 (National Center for Employee Ownership).

What’s Your News?

What’s new with your small business?  Feel free to leave a comment below.

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 23^rd 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.

1. Getting to Plan B – by John Mullins and Randy Komisar
2. Outlier – By Malcolm Gladwell
3. Exploiting Chaos: 150 Ways to Spark Innovation During Times of Change – by Jeremy Gutsche
4. How the Mighty Fall and Why Some Companies Never Give in – by Jim Collins
5. Crush it! Why Now is the Time to Cash in on Your Passion – by Gary Vaynerchuck

Small Business News #5

Celebrate the good news!

Top Five Books on Amazon in Small Business and Entrepreneurship as of December 4, 2009

1. Put More Cash in Your Pocket:  Turn What You Know into Dough – Loral Langemeier
2. Crush it!  Why NOW is the Time to Cash in on Your Passion – Gary Vaynerchuck
3. Getting Things Done:  The Art of Stress-Free Productivity – David Allen
4. Good to Great:  Why Some Companies  Make the Leap…and Others Don’t – Jim Collins
5. 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.