• Are Policy Makers Missing the Mark for Small Businesses?

    by  • November 12, 2012 • 0 Comments

    The Wall Street Journal recently published an article that discusses the outdated notion of “small business” in the U.S. The disconnect between small business policies and small business realities is making it so the benefits that were engineered specifically for “small businesses” don’t reach a large majority of the small business population. Here are some of the highlights from the article.

    Outdated Programs Don’t Help Modern Startups
    The Small Business Administration was created in 1953, a time when dynamic startups (such as Facebook) did not exist. It wasn’t until the 1990s that the boom of software and internet-based startups changed the small business landscape. Because the SBA did not contemplate this changing landscape, many of its programs are not tailored to meet the needs of newer, fast-growth startups.

    Growth is Rare for the Traditional Small Business
    In fact, many small business owners do not start their business with the goal of growing exponentially. Rather, they decide they want to be their own boss and are satisfied with maintaining the business to provide a steady income. Compare this to today’s startups that seek exponential growth and exit (i.e. sell off the startup) and you’ll notice a drastic divergence in the policies, goals, and operations of the “small business.” The problem is that the government places both types of businesses in the same category, as “small businesses.”

    There’s No One-size Fits All for Small Businesses
    Unfortunately, all businesses that have fewer than 500 employees do not have the same needs and don’t benefit from the same policies. One example of missing the mark is the government’s tax incentives for hiring new employees. While the local hardware store may benefit from this tax break, startup software companies are more focused on bringing in highly-skilled employees with specialized experience. Therefore, modern startups are often more concerned with immigration reform and science, engineering, technology, and math education, than receiving a tax break for hiring a worker.

    The Solution?
    The article suggests that a new approach to categorizing small businesses, making sure local businesses withmodest ambitions and dynamic startups both get the customized attention that they need. Recent legislation, including the JOBS Act, is beginning to take into account the changing landscape of startups.

    Furthermore, policy makers should look at more than just the number of small businesses that are formed as a measure of success. Instead, success should also be based on revenue and job growth to determine whether startups in the U.S. are actually expanding our economy.

    The bottom line, the article notes, is that “we can do better” when it comes to small business policy in the U.S. You can read the entire Wall Street Journal article here.

    If you’d like to learn more about small business formation or legal guidance for your dynamic startup, please don’t hesitate to contact us today.

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    The Benefits of Networking for Small Businesses

    by  • October 31, 2012 • 0 Comments

    One important step in building a small business and expanding your exposure in your community is to get out and meet people. That’s right, face to face meetings with other business owners and entrepreneurs that are trying to accomplish the same thing as you: build a sustainable small business. Today’s post highlights some of the benefits of networking.

    Information. Networking groups can provide an instant surplus of information about a wide variety of topics. You never know when you’ll need this information to grow your small business.

    Referrals. Probably the most obvious benefit of networking is referrals or leads. When someone that you network with meets someone that is need of the service or product you offer, your networking partner will send you the customer or client. Just remember, typically it takes sending out referrals to receive referrals!

    Contacts. The people you network with will have connections with a numerous other contacts that may, at some point, be able to assist you with any obstacles that you encounter in your business. You’ll also build a network of contacts that you can refer your customers to if you can’t answer their question or fix their problem.

    Perfecting your pitch. When you decide to regularly network, you’ll soon find that your ability to discuss your brand, or pitch your company, will become easier and easier. For most networking groups, you’ll start off by discussing who you are and what you do. Entrepreneurs and investors will tell you that nailing your “elevator pitch”—the two to three sentence description of your business—is one of the more important parts of networking. It won’t be easy in the beginning, but you’ll soon have your pitch polished. Practice makes perfect, right?

    Brand-building. As a small business owner, it’s important to build your brand, which is much easier if you have people to assist you with spreading the word about your business. From blog posts to new product launches, it’ll be easier to get the word out with the help of a network of people you regularly meet with.  Also, you can learn how your brand is perceived by getting feedback from your networking partners.

    Free. Most networking groups are free. In today’s world, “nothing is free,”  right? Wrong. Networking allows you a free way to market your business to a group of strategic partners that can assist you in a number of ways, including information, referrals, contacts, perfecting your pitch, and building your brand.

    Let me know what you think of networking. Please comment below about your experiences with networking (positive or negative).

    Please feel free to contact me if you’d like to learn more about the benefits of networking or other ways to grow your small business.

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    Software Companies Top U.S. Investments in Number and Value

    by  • October 22, 2012 • 0 Comments

    Recent data shows that the software industry accounted for more than one quarter, or $3.3 billion, of the investments (nearly $12.5 billion) made in the 1,046 funding deals during the third quarter in the U.S. According to Digimind, a competitive intelligence software firm, and data released by WhoGotFunded.com, the industrial and energy sectors came in second, [...]

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    SBA Assisting the Socially and Economically Disadvantaged Small Business

    by  • October 17, 2012 • 0 Comments

    The Small Business Administration’s 8(a) Business Development Program is a business assistance program that is aimed at assisting small businesses that are owned and controlled by at least 51% by socially and economically disadvantaged individuals. The program helps thousands of blooming entrepreneurs obtain significant government contracts. The Benefits Participants can receive sole-source (or “no bid”) [...]

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    Driving Traffic to Small Business Sites Through Social Media

    by  • October 15, 2012 • 0 Comments

    A recent study carried out by Northwestern Professor Rich Gordon and Syndio Social CEO Zachary Johnson notes that nearly half of the traffic to Chicago-based small business websites is from the social media giants Facebook and Twitter. Facebook refers more than 48 percent, while Twitter sends nearly 4 percent of the traffic to small business [...]

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    Tips for Putting Together an Employee Handbook for Your Small Business

    by  • October 10, 2012 • 1 Comment

    Employee handbooks are great for laying out your small business’ policies, employee expectations, and they can be particularly helpful if (for some reason) your business is ever sued. The most important thing is that these handbooks will clearly communicate your expectations and rules by which employees will be governed. Below are some tips for putting [...]

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