SBA's 8(a) Program Can Help Some Companies Compete

SBA's 8(a) Program Can Help Some Companies Compete

Q: A friend told me that as a woman of Native American descent I might be eligible for a special SBA program that will help me start a small business. He said I could compete for government contracts through this program. Can you tell me what SBA program he's referring to?
-- Clara P.

A: Your friend is probably referring to the Small Business Administration's (SBA) 8(a) Business Development (BD) Program. The 8(a) Program (named after the section of the Small Business Act from which it comes) is an SBA program created to help small disadvantaged businesses better compete in the U.S. marketplace and within the arena of government procurement. The SBA provides business development, technical assistance and other services to the small businesses that are accepted into the 8(a) program.

The 8(a) program is reserved for what the SBA calls "socially disadvantaged individuals." Socially disadvantaged individuals are defined as those who have been subjected to racial or ethnic prejudice or cultural bias because of their membership in a disadvantaged group.

The SBA has designated the following groups as socially disadvantaged:

· Black Americans · Hispanic Americans · Native Americans (Native American Indians, Eskimos, Aleuts, and Native Hawaiians) · Certain Asian Pacific Americans · Other individuals who can prove that they meet the SBA's criteria to be considered socially disadvantaged

One point where your friend is incorrect is that the 8(a) program is for new companies. The 8(a) program is primarily for companies that have been in business for a minimum of two years, though that rule may be waived if your company is able to meet some pretty strict management, financial, and performance criteria.

Obtaining 8(a) status is no guarantee that a company will be successful in obtaining government or other contracts, but it certainly doesn't hurt. The Small Business Act mandates that all small businesses have the opportunity to provide goods and services to the U.S. government. To help ensure that mandate, the SBA negotiates annual procurement preference goals with every Federal agency and reviews each agency's results to make sure the goals were met.

The statutory goals are: 23 percent of all prime contracts go to small businesses; 5 percent of prime and subcontracts for small disadvantaged businesses; 5 percent of prime and subcontracts for women-owned small businesses; 3 percent of prime contracts for HUBZone small businesses; and 3 percent of prime and subcontracts for service-disabled veteran-owned small businesses.

A HUBZone (Historically Underutilized Business Zone) is a designated area within urban and rural communities that has been given preferential contract award consideration in an effort to stimulate economic development. A company may qualify for HUBZone status if it is owned or controlled by one or more U.S. citizens, has at least 35 percent of employees who live within the designated zone, and has a principal office located there. HUBZones are a whole 'nother topic that we can discuss at another time. Suffice it to say that a company that obtains both 8(a) and HUBZone status may be entitled to double dip in the government procurement trough, that's why you often find a number of 8(a) companies specifically moving into HUBZone areas to take advantage of the perks both programs offer.

The U.S. government purchases billions of dollars in goods and services every year, everything from staples to those wonderfully expensive toilet seats. Obtaining 8(a) status allows small businesses to compete for a portion of that business.

The basic requirements for applying for 8(a) status are your company must be a small business as defined by the SBA, must be owned and controlled by one or more socially and economically disadvantaged individuals who are U.S. citizens, and must show a potential for success. The SBA defines a small business as "one that is independently owned and operated, is organized for profit, and is not dominant in its field."

As expected, the 8(a) program has its fans and its detractors. It's fans are those companies that obtain 8(a) status and thereby get preferential treatment when competing for government procurement contracts.

The program's detractors are typically those companies that fail to obtain 8(a) status or that do not meet the definition of socially disadvantaged, i.e. businesses owned my white American males (that's a can of worms we won't open this week).

You can learn more at the SBA's website (sba.gov) or by calling your local SBA office.

Here's to your success! 

Lynnwood auto repair shop charged with insurance fraud

A Snohomish County auto repair shop has been charged with insurance fraud after charging for repairs it didn't do and parts that it never installed.

Northwestern Collision, of Lynnwood, was charged Dec. 14 in Snohomish County Superior Court. Arraignment is set for Jan. 9.

In 2009, Farmers Insurance investigators inspected 11 vehicles that had been repaired by the shop between 2007 and 2009. Of the 11, 10 "had substantial and specific" deviations from the repair estimates that Farmers had agreed to.

Among the problems: parts missing and not replaced, repairs not performed, and repairing items that were supposed to be replaced.

On Dec. 8, 2010, officers from the state insurance commissioner's Special Investigations Unit, the State Patrol and the Snohomish County Sheriff's Office served a warrant at the company's Lynnwood office. They gathered up paper files on 10 of the 11 vehicles.

The records indicated that in some cases, new parts that were supposed to be installed were instead returned to the parts dealer.

The insurer was overcharged nearly $11,000, and had to buy one customer's car, which had been rendered unsafe to drive, for another $15,446.

How to Choose the Best Small Business VoIP Solution

How to Choose the Best Small Business VoIP Solution

Telecommunication cost is always an obstacle for small business owners, especially if you need to call domestic or international long distance. The long distance cost factor alone, depending on the type of business you're in, can make the difference in the success of any small business.

The telecommunication market today is one of the most competitive. Rates for both local, domestic long distance or DLL (long distance in the same country) and international long distance (ILD) are going down every day. The new player in small business phone systems, VoIP (Voice over Internet Protocol), adds a whole new dimension when it comes to choosing a phone system for your small business or home based business.

There's so much hype today about VoIP, or Voice over IP, or Voice over Broadband, whatever you want to call it. Everyone's saying that VoIP is the "future of communication" and that VoIP will replace regular analog phone calls. Is all this true? If it is, how do you, as an entrepreneur, decide how to choose and invest in what's best for you? Firstly, if you have no idea what VoIP is really about, here's where you can get educate yourself: http://www.mybusinessvoip.com/start

There are two things you need to consider:

1. Level of investment
2. Cost vs. Quality

To go full out into using VoIP, you'll need to invest in IP phones, and possibly even in IP PBX. Otherwise, you should go for IP phone adapters, which allow you to maintain whatever system you already have, but also gives you the option of converting some of those phone lines to VoIP. Most entrepreneurs are reluctant to go 100% into VoIP, and yet they still want the benefits that come from it. That's why IP phone adapters are so popular today. In fact, here's a list of the most popular providers for comparison: http://www.mybusinessvoip.com/compare

When is comes to quality vs. cost, the direction is pretty clear. Before choosing the proper VoIP phone system for your business, you need to figure out exactly what your business needs. If your business relies heavily on the phone for prospecting customers, providing customer support, or giving out important information through the phone, then you should definitely opt for better quality.

If you use the phone for short communication with your business partners or agents, or any other reason which is NOT your main business function, it would be better to save a little and go with the low cost option. The difference in quality is not very apparent in most cases.

If you are just starting your small business, VoIP phone cards also provide some sort of temporary solution until you can get enough financing to develop a better system. Phone cards usually let you dial international and national long distance at a lower cost because they use either VoIP as the back end provider or through a special promotion or arrangement between telecommunications companies.

Today, you can even get "virtual phone cards" which allow you to make phone calls by dialing a toll-free number in a long list of countries. This is especially useful if you spend more time travelling and doing business overseas than you are at home.

Regardless of which VoIP phone system you choose for your small business, make sure you are getting the most out of the money you spend for these long distance or international plans. Forget the bells and whistles. The purpose of having a good phone system is, and always should be, to communicate and express yourself.

Cease and desist order issued to TracGuard Services

The Washington state insurance commissioner's office has told a Florida-based vehicle service contract provider to stop selling unauthorized contracts in Washington state.

TracGuard Services LLC, Jose L. Terry and Alberto Tudela, all of North Miami, have been ordered "to immediately cease and desist from engaging in or transacting the unauthorized business of insurance" in Washington.

Neither the company nor the two men are authorized to solicit or transact insurance in the state. They have not registered as a motor vechicle service contract provider in Washington.

The three have been ordered to notify all Washington residents who have purchased a service contract from them. It also warns that, pursuant to Washington state law, unauthorized insurers "shall remain personally liable for performance of the contract."

Cease and desist order issued to Mill Creek man

A Mill Creek man and company have been ordered to stop selling unauthorized vehicle service contracts.

The order names Scott L. Stevens and RVProtection.net, Inc., both of Mill Creek, Wash. In August of 2010, they sold a consumer a vehicle service contract offered by Genuine Warranty Solutions, Inc.

The problem: Genuine Warranty Solutions, Inc. is not a registered vehicle service contract provider in Washington.

The Dec. 19 order took effect immediately. Stevens and the company have the right to appeal the order.

Public notices and hearings: Change of incorporation, proposed acquisition, etc.

Notices and upcoming hearings from our public notices web page:

Proposed acquisition: Humana is proposing to become the sole owner of Arcadian Management Services and its affiliates. We've completed our review of the application for acquisition of control. No hearing's been scheduled yet, but will be soon.

Incorporation change: The Safeco Companies have requested approval to have New Hampshire be their state of incorporation. The companies, which were acquired by Boston-based Liberty Mutual in 2008, say the change would not affect any Washington policyholders, and that there would be no interruption in coverage. A hearing is scheduled for Jan. 10, 2012 at 10 a.m. in our Tumwater office, which is at 5000 Capitol Blvd. Annual reports and other documents re: the request are posted here.

Change in port of entry/redomestication: Industrial Alliance Pacific Insurance and Financial Services have filed documents to change their port of entry/redomestication to Texas. A hearing is scheduled for Feb. 1, 2012 at 1 p.m. at our Tumwater office, which is at 5000 Capitol Blvd. Documents re: the request are posted here.

Judge issues insurance fraud ruling...in the form of a poem

And now for something completely different:

A Pennsylvania judge has issued a ruling in an insurance fraud case. What's unusual is that the judge issued his ruling in the form of a poem. From the Associated Press:

Justice J. Michael Eakin, writing for a 4-2 majority, concluded in six-line stanzas that a man's attempt to deposit a forged check appearing to be from State Farm didn't constitute insurance fraud.

"Sentenced on the other crimes, he surely won't go free, but we find he can't be guilty of this final felony," Eakin wrote. "Convictions for the forgery and theft are approbated — the sentence for insurance fraud, however, is vacated. The case must be remanded for resentencing, we find, so the trial judge may impose the result he originally had in mind."

A 3-page dissent by another judge, AP writer Marc Levy noted, did not rhyme.

Does my small business need a budget?

Does my small business need a budget?

"I only have a small business, I don't need a budget."
"I don't have enough money to budget."

For many small business owners, the word "budget" is something for the bigger company - maybe they'll have one when their business "grows up."

What is a Budget?
The simple explanation is a budget is a plan for how you will manage all financial resources and all expenses for your business. The basic equation that you want to demonstrate in a budget is as follows:
(estimated )Sales minus (estimated) Expenses = Profit (or loss)

How to create a Budget
If this is your first time to work on a budget for your small business, you might work from the perspective of having to list cost of goods or services plus all of your operating expenses to start the process.

How much does it take to operate your phone line? What is the cost of other utilities? How about the cost of a company vehicle, or what is the cost of transportation if you're using your personal vehicle to also serve as a company vehicle. Do you need any supplies or inventory to operate your business? How about any employee payroll, payroll taxes or independent product or service providers? Remember to include everything you spend money on to operate your business even if you allocate some of the expenses to "petty cash" expenses, such as parking or bridge tolls while traveling to see clients.

I recommend that you create annual budget, as opposed to a monthly budget, so you can identify any expenses that you may have that come up only once or twice a year such as insurance and include them in your list of expenses. This allows you to amortize or spread the cost of this out over several months so that you can plan ahead for the expense.

As you work on your list of expenses keep in mind that these are the expenses that are necessary to operate your business. These should not be your "wish list" unless you want to budget in some expansion or growth. You may want to create a budget with just the necessities and another version of your budget with expansion expenses listed so that you can see the cost of both separately.

With a dollar figure to work with of your total expenses you are able to set the standard for or evaluate your sales figures. If you are new to your business you may need to use the dollar amount of your expenses to help you determine what your sales need to be in order to cover all costs and show a profit. If you have been in business for a while you can evaluate whether or not you are producing a profit by looking at historical sales figures.

As you conduct business during your budget year you should compare your actual income and spending with what you estimated. This will allow you to manage your spending so that you don't over spend and cut into or eliminate your profits. You will also be able to see if sales have met expectations in order to cover expenses and still remain profitable.

Who should Budget?
Every small business owner should budget, no matter the size of business. I have heard some small business owners say their business is too small to budget, but that is not true. If you don't have a written plan for what your financial obligations are and how your revenue will cover those obligations and leave some money unspent, then your business will never grow. In fact, you may out-spend your revenue and put yourself out of business.

Why Budget?
Budgeting for your small business gives you control over your finances. By looking ahead to what you know or can reasonably estimate what your expenses will be, you can then make financial decisions that will keep you from over-spending, or give you the freedom to invest in the growth of your business.

When Budget?
Every small business owner should have a budget to start their business and then review it annually. I recommend that small business owners review their budget several months before the end of their fiscal year. When I say review the budget I'm talking about comparing projected budget with actual. In the comparison you can see if your estimates were realistic. You and your CPA can also plan for last minute tax strategies, or plan to implement strategies in the up coming year's budget.

The Goal in Budgeting
Remember, the goal of having a budget is to stay in control of your finances in advance. Setting the standard for your spending and revenue and having a tool to compare with actual will give you the control that you need to stay profitable. At the very least it will give you an indication of whether or not your business is actually profitable and not just busy.

Resource
Throw away all your receipts!
Yes, you can throw them all away after you've scanned them into NeatReceipts. This handy tool is operated by scanning all of your receipts using a portable scanner into your computer or laptop. The software can produce expense reports or you can import the information from the receipts into your accounting software such as Quicken or QuickBooks. Once the receipt has been scanned into your computer you have a digital copy so you can through the receipt away. No more shoe boxes full of receipts! http://www.thesmallbusinessguru.com/products/item10.cfm

GEICO fined $100,000 for overcharging customers in WA; company will also refund $7.5 million

A Maryland-based insurance company has been fined $100,000 after overcharging thousands of its Washington state customers.
The insurer, GEICO, is also refunding $7.5 million – plus 8 percent interest -- to the 25,267 affected auto insurance consumers by the end of the year.

“A computer database error caused the problem, which the company reported to us promptly,” said Washington State Insurance Commissioner Mike Kreidler. “GEICO has also agreed to a two-year compliance plan that includes multiple audits.”

An additional $50,000 fine was suspended, on the condition that the company abides by the terms of the compliance plan.

The refunds, many of which have already been paid, will average roughly $300. The company has been contacting active and former customers affected by the issue and expects to have all refunds paid by the end of the year.

On May 26, 2011, GEICO representatives self-reported the computer error, which resulted in 7 percent of the company’s Washington customers being overcharged for insurance between Aug. 24, 2009 and June 2011.

Fines collected by the insurance commissioner’s office do not go to the agency. The money is deposited in the state’s general fund to pay for other state services.

The complete order is posted at: http://www.insurance.wa.gov/oicfiles/orders/2011orders/11-0273.pdf.

Social media, liability and insurance

Social media and insurance? Hard to imagine those words together, but the new report by the Insurance Information Institute is pretty interesting reading.

Most of us rely on social media more and more these days - whether for work or to keep with friends and family. But we probably never think about the insurance impact (ie. liability issues).

Find out if you or your business could be at risk - here's the report.

Getting a Small Business Loan

Getting a Small Business Loan

Are you in need of financial resources in order to start or even maintain your small business? Most of us are. The fist step is to take a look at the vast number of commercial loan sources that offer help in this area such as Chase, Citibank, etc. Also, with the Small Business Administration (SBA), you should be able to arrange a connection with one of these banks. This is one of many organizations that specialize in loans to small businesses.

Contrary to the belief that bankers actually look for reasons to turn down prospective clients in need of a loan, they are in the business to lend money. This means that every time a banker is sitting in front of a potential client, they are hoping to make the deal work just as much, if not more than the client wants it to work.

A bank’s primary role in the small business lending area is funding growth. An example of this would be to finance the expansion of small business with a proven track record. Most banks can offer a wide variety of loan packages designed to finance expansion of an already existing small business.

Below are a few examples bank loan packages :

1. Asset Based Financing. Asset Based Financing is a general term describing a transaction whereby a lender accepts collateral and assets of a company in exchange for a loan. Most asset based loans are collateral against other accounts receivable, inventory, or equipment. Accounts receivable is the most favored of the three because it can be converted into cash quickly. Banks will only advance funds on a percentage of receivable or inventory, typically being around 75% of the receivable and 50% inventory.
2. Line of Credit. A line of credit involves the bank’s setting aside designated funds for the business to draw against for the cash it needs. As the line of credit is used, the credit line is reduced and when payments are made the line is replenished. One major advantage of a line of credit is that no interest is accrued unless the funds are actually used.
3. Floor Planning. Floor Planning is another form of asset based lending in which the borrower’s inventory is used as collateral for the loan. Car dealerships are a prime example of a business that often uses floor planning as their primary financial tool. 

Number of uninsured in WA hits 1 million

We posted a report this morning detailing our estimates of the number of Washingtonians with no health insurance, the amount of uncompensated care, and how those numbers are trending.

The upshot: We calculate that:

• The number of uninsured has reached 1 million, or 14.5 percent of the state's population.
• Uncompensated care (bad debt and charity care at hospitals, clinics, etc.) is nearly $1 billion.
• And that both numbers are likely to continue to rise until 2014, when the major provisions of federal health care reform are slated to take effect.
• The percentage of residents without health coverage worsened in 31 of 39 counties.
• In several counties, more than 1 in 5 residents has no health coverage.

“This is a grim milestone for the state, and we believe the situation will remain bleak for two more years,” said Kreidler. “But it’s important for people to know that there is hope is on the horizon.”

Counties with a particularly high percentage of uninsured residents include: Adams, Grant, Okanogan, Franklin and Yakima. But the problem also worsened in King, Pierce, Snohomish and Spokane counties.

The good news: Assuming that federal health care reform takes effect as planned, more than 800,000 uninsured Washingtonians will be eligible in 2014 for expanded Medicaid eligibility or subsidies to help low- and middle-income families pay for health coverage.

This is the third report on the uninsured our office has put out since 2006.

A $200,000 patio cover? Spokane man charged with insurance fraud

A Spokane man has been charged with insurance fraud and attempted theft after a snow-damaged patio cover worth about $4,000 mushroomed into a nearly $200,000 claim.

Keith R. Scribner, 47, was arraigned Monday in Spokane County Superior Court on one count of insurance fraud and one count of attempted theft.

In late July 2009, Scribner's mother, Marilyn Warsinske, filed a claim with Liberty Mutual insurance. She said a patio roof at a home she'd purchased had collapsed due to the weight of snow some 6 months earlier. The policy covered "like kind and quality" replacement. Her son, she told the company, would handle the claim.

Scribner told the insurance company that patio cover was an extensive structure, spanning the entire length of the patio and wrapping around the home's chimney. Claims officials, inspecting the site, wondered why was there no flashing or holes in the masonry. Scribner said that house painters must have made repairs.

He sent the insurance company three bids to replace the cover based on his description. The bids ranged from $195,586 to $213,815.

Claims officials asked Scribner for any photos of the roof prior to the damage or after it collapsed. Perhaps some were taken during a home appraisal prior to the purchase, they suggested. Scribner said there were no photos and was no appraisal.

But a claims handler discovered an aerial photo of the home on a real estate website. It showed a much smaller patio cover than Scribner claimed.

The company launched a fraud investigation and notified Insurance Commissioner Mike Kreidler's anti-fraud Special Investigations Unit.

As it turned out, there had been a home appraisal, the investigators discovered. In fact, Keith Scribner met with the appraiser. And the appraisal included photos of the patio cover. A real estate agent interviewed by investigators described the cover as being "small and nothing special or significant."

The home's previous owner also provided photographs of the structure. It was originally canvas. When that because troublesome to remove each year, the homeowner bought a polycarbonate cover. Cost: About $300.

An architect told a state fraud investigator that he'd met with Scribner in 2008 -- months before the snow collapse -- to discuss plans to replace the deck cover with new, larger one.

A local company, provided with measurements and photographs of the original structure, drew up replacement bids at the request of a state fraud investigator. The bids: $3,913 and $4,782.

Insurance problem? We can help

We're the state agency that regulates insurance in Washington state. If you're a Washingtonian, we're happy to help answer insurance questions and help try to solve problems with insurers/agents/etc.

What can you expect? If you file a complaint, for example, we will:

■ Contact the insurance company regarding your concerns, review their response, and share the results of our review with you.


■ Research and complete your complaint within 60 days.

■ Suggest steps you might take to resolve your issue.

■ Make your complaint a part of the company's public record.

■ Require the company to address your concerns and follow Washington state insurance laws and regulations.

And we get results. We get millions of dollars a year in delayed or denied claims paid to Washington consumers.

For a complete list of our customer service standards -- as well as links to easily file a complaint online -- please see our complaint help web page. You can also call our Insurance Consumer Hotline toll-free at 1-800-562-6900.

We'll try our best to help.

There Are Tons Of Small Business Grants For Womwn...But Where?

There Are Tons Of Small Business Grants For Womwn...But Where?

When starting a small business it can be costly, and finding a grant if you’re a women isn’t always the easiest thing to do. Little do most people know, there are millions of dollars just waiting to be claimed for grants from the government and other little-known organizations. It can be very difficult to find the right grant for you, and the place of where to get it, but with a few clicks you too can easily get access to small business grants for women.

It is not a secret that women are beginning to own more and more businesses everyday. Not only this, but these businesses are becoming just as successful if not more then men’s businesses are. If you are looking for a grant, don’t be hesitant to look because of what the business is going to be. There are literally hundreds to thousands of grants out there for women wanting to start craft businesses, consulting, brokerage, record labels and more.

When looking for a grant, there is the option of spending hundreds of dollars to pay somebody to get you a grant. However, there are other ways that are completely free, but may be more time consuming then you would hope. One site that is worth checking out is The Ladies Club 2000.com. It is required that you sign up and become a member, free of charge, but then you will have access to grant information on how you can become qualified for a grant and where you can find grants to begin your business or increase your business.

http://www.theladiesclub2000.com/grantsforwomen.htm

There are all kinds of companies out there, and the type of grant that you will receive varies for place to place. On womens-finance.com, there are two different kinds of grants offered. There is the New Business grant that is between $100 and $5,000, and there is the existing business grand that ranges from $1,000-$5,000. You do have to apply at this site and be accepted, but it is worth checking this site out below:

http://www.womensbusinessgrants.com/

It may not seem like it, but our government does want you to succeed, and that is why there is millions of dollars out there for you. Most places have ridiculous requirements in order to get a grant such as being over 65, being a minority, or even having bad credit sometimes help the process.

There are sites out there that are specifically looking for women only to give grants to. These sites are attempting to help the women population succeed in entrepreneurialism and begin the road to succession. The site listed just below here has a list of about ten different sites that are specifically looking for women to give grants to.

http://www.womanowned.com/Growing/Funding/Opportunities.aspx

There is no reason to get frustrated after not having any luck finding loans. The government wants you to succeed in opening your small business, or help develop it that much more. There are a few sites listed above that are very much worth checking out to help you find small business grants for women. Don’t get discouraged as this can be time consuming, but once you find the financial help needed, you will be on your way to developing your business. 

Medicare drug and Advantage plan enrollment ends Dec. 7

Medicare's open enrollment for prescription drug plans (Part D) and Medicare Advantage plans ends Dec. 7.

This year's enrollment period was moved and expanded, thanks to the Affordable Care Act, giving people additional time to consider their choices.

Still need to make a decision and need some help? Our Statewide Health Insurance Benefit Advisors (SHIBA) program can answer questions and help you evaluate plans. Call our Insurance Consumer Hotline at 1-800-562-6900 and ask to make an appointment with a SHIBA volunteer in your area.

Before you make your decision, consider these tips:

• Plan costs and coverage can change every year, so carefully review all letters and notices from your current plan.


• Make a list of all current prescription drugs you take, the doses, and how often. Then, use the Plan Finder at www.medicare.gov to compare Part D plans.


• Review the 2012 Medicare & You handbook. You should have received it in September.
  If you have questions, call 1-800- MEDICARE (1-800-633-4227) before you sign up.


• If you have limited income and need help paying for prescription drugs, check out Medicare’s “Extra Help” program. To see if you qualify, contact the Social Security Administration at 1-800-772-1213 or go to www.socialsecurity.gov and click on Medicare.

But most importantly, don't wait! Remember, open enrollment ends Dec. 7. Here's a list of prescription drug plans and Medicare Advantage plans

Don’t Let Passions Rule When Buying A Business

Don’t Let Passions Rule When Buying A Business

For many, the American dream of owning a business is in queue right behind owning a home. I was a teenager when I owned my first business. Since then I have bought or started many businesses and helped others do the same. Here are some common mistakes I have witnessed or committed myself.

Paying too much
This results from the combination of all other mistakes. Many new business owners set themselves up for failure by paying too much, which results in higher loan payments, lower operating funds, and reduced borrowing capacity.

Letting your emotions rule
If you have always dreamed of owning a business, it is very easy to get caught up in the strong emotions invoked by seeing those dreams coming true. To counteract your emotions, take your time, do your homework, and enlist the help of objective advisors.

Paying for potential
You should only pay for the business as it stands at the date of purchase, not what it could be in the future. You will have to spend time, effort, and money to develop its potential. The seller chose not to invest these things, so he does not deserve to be paid for them.

Not evaluating yourself
Do you have what it takes to run this business? Try to match your strengths to the important duties you will be required to perform. Running a small business requires the owner to do many things. No one can be good at them all, so make provisions for those areas in which you are the weakest. Some tasks like payroll and bookkeeping can easily be contracted to outside vendors. Possibly your spouse, other family member, or a partner could do things that you cannot or do not want to do.

Not building a team of experts
At a bare minimum, you should enlist the aid of an attorney and a CPA. The attorney can prepare and review documents, help structure the deal, and make you aware of legal and liability issues. The CPA can provide a financial analysis of the business, and advise you about tax and accounting matters. You should consider adding a business valuation professional. His valuation report can be used to determine the reasonableness of the asking price, negotiate a lower price, and provide valuable information about the business, the industry, the competition, and the economic conditions.

Relying on bad information
You should verify all important information about the business. Your CPA can check financial information like receivables, payables, and inventory. Your attorney can review loan documents, leases, and contracts. Your business valuation professional can analyze the competition, the industry, and the economic conditions. Use independent appraisers to value real estate and equipment. Get a credit report on the business through your CPA or banker. You can do some of the investigating yourself to save money, but do not cut too many corners – it may cost you in the long run.

Changing too much, too fast
Once you own the business, you will be tempted to start making wholesale changes from day one. You risk alienating long-time employees and customers. Unless the business is in bad financial condition and needs immediate action, its better to take some time to get to know the business, your employees, and your customers before making changes. This is a perfect time to solicit suggestions from employees and customers.

Buying a business because you like to do what the business does
One reason restaurants have a high failure rate is people buy or start them because they like to cook. Very few restaurant owners spend time cooking. Their time is spent managing staff, ordering supplies, doing paperwork, and handling daily crises. A small business owner must wear many hats – including that of manager.

Not being interested in the business’s product or service
I made the mistake of thinking that because I am a CPA and smart that I could own and operate any business. I bought a business that sold high-performance auto parts to young men who drove jacked-up, four-wheel drive pickup trucks and went to the drag races every weekend. I did not do either and never understood why anyone would. I could not relate to my customers and went out of business in about a year.

Conclusion
Buying a business is a complicated, emotional process. By avoiding these costly mistakes, you can prevent turning your dream into a nightmare. 

Insurance when you're laid off: What to ask for on your way out the door

Nobody wants a layoff notice, but critical insurance moves on your way out the door can help extend your health insurance (and other coverage) and save you thousands of dollars at a critical time.

Insurance.com spelled this out today in an article titled "Insurance smarts during a layoff: 3 must-do moves."

Among the advice:

• Ask for an extension of health care benefits. Ask for the employer to keep you covered for 3-6 months.
• Negotiate with your employer to have them pay COBRA insurance premiums, which can be very expensive.
• Convert group life insurance or group disability coverage to an individual plan, particularly if you're older.

Why Is Small Business Health Insurance Worth It?

Why Is Small Business Health Insurance Worth It?

If you’re looking for a guide to how to get health insurance and what kind of health insurance is best for your small business, then this is the article for you. Your business qualifies for small business health insurance if you have anywhere between two and fifty employees in it. If you are self employed then you’ll want to look into getting self employed health insurance.

There are many benefits to getting small business health insurance. A small business health insurance plan will help spread the financial risk around to everyone and not just yourself. As this is the case, this generally will bring lower premiums and more extensive coverage. Along with this, the health insurance provides medical care for you and all other employees as well.

With a small business health insurance people often get group insurance. This too has its advantages on several different aspects. All contributions from the employers are 100% tax deductible, and you’ll save on payroll taxes as well. Small businesses will be eligible for group insurance just as long as you have two or more full time employees working.

When setting up a group insurance plan for your small business, all members will be set up with a coverage plan with rates calculated using the group and individuals. After that it is up to the separate employees themselves if they wish to add riders and additional coverage to satisfy their needs. Keep in mind that not all employees in the small business have to join the group plan. Just as long as there is no fewer then two employees in the business that have the group insurance plan, then you will be fine.

The cost of the group insurance plan varies based on several different characteristics. Some of these include age, health status, business and/or residential location and so on. Like everything in this world it’s not going to be cheap, but it will be cheaper then having a bunch of separate health insurance plans.

Most health plans are going to require employees to pay at least half of the premium cost for covered employees. Some employees will offer to pay 100% of the cost, white now there is a new health plan giving employees the option to pay as little as 25% of the cost. Just know that typically most types of coverage will cost employees a minimum of $1,600-$2,500 per year per employee. By clicking on the link below you can begin getting quotes for your small business health insurance. 

Report: Health costs' rapid rise

The Commonwealth Fund has published a new report looking at state trends in health insurance premiums and deductibles from 2003 to 2010.

The upshot: employees' annual share of premiums increased by 63 percent over those 7 years (and premiums themselves rose 50 percent as well). In Washington state, for example, family health insurance premiums rose from $9,212 to $14,188 during that period. That's a 54 percent increase.

Not surprisingly, given stagnant incomes in recent years, premiums as a percentage of median household income during that time increased dramatically. In 2003, only a single state (West Virginia) had average premiums above 20 percent of median household income. Today, about half the states are in that category.

For a look at premiums (single and family) by state, here's a good interactive map from the report.

The report continues:

 At the same time, per-person deductibles doubled in large, as well as small, firms.

If premium trends continued at that rate, the researchers predicted, "the average premium for family coverage will rise 72 percent by 2020, to nearly $24,000."

Federal health care reform, passed in early 2010 but taking effect largely in 2014, offers the hope of some savings, the report says:

Health reform offers the potential to reduce insurance cost growth while improving financial protections. If efforts succeed in slowing annual premium growth by 1 percentage point, by 2020 employers and families together would save $2,161 annually for family coverage, compared with projected premiums at historical rates of increase.

Colorado couple ordered to stop selling insurance in Washington state

A Colorado couple, Robert W. Ramlet and Patricia Ramlet, has been ordered to stop selling insurance in Washington state.

In 2006, the two sold two life insurance policies in Washington state without being licensed as insurance agents here.

Commissioner Kreidler on health care reform, the individual mandate, and rate transparency

Commissioner Kreidler was interviewed by host Austin Jenkins on TVW's Inside Olympia program this morning to discuss health care reform, health insurance costs, and his successful push to release confidential rate information from health insurers.

On the federal Affordable Care Act: "While this act is not perfect, it is the best thing that we have going right now to get our hands around a very serious problem for this country of ours...People are really being hurt...The current system is broken."

On the individual mandate to buy health coverage, starting in 2014: "If you have people opting in when they're sick and out when they're well, it just plain won't work."

On health care exchanges: "It's going to be a lot like online shopping that a lot of people are familiar with. And that's going to be a huge advantage over what we have now."

Additional flood warnings in WA

After overnight rain in parts of the state, the National Weather Service has issued another flood warning, including:

The Nooksack River at North Cedarville (Whatcom County)
The North Fork of the Stillaguamish near Arlington (Snohomish County)
The Deschutes near Rainier (Thurston County)
The Chehalis at Porter (Grays Harbor County)

Minor flooding is expected at some of those locations today or tonight. The Chehalis River at Porter was close to flood stage at 8:45 this morning.

See the link above for details.

Update: (11:41 a.m.) Another warning's been issued, including some other area rivers. The upper reaches of most rivers crested this morning or will crest this afternoon, with crests moving downstream through Thursday.

Are You Using the Right Form of Energy?

Are You Using the Right Form of Energy?

As we near the end of summer, here is a question I have for you, “Are you using the right form of energy to grow your business?” Are you having trouble growing your small business as fast as you want? Are you making all the right moves and still the business just inches forward? Read this article and see if you are using the right form of energy to grow your small business?

Head Energy
My consulting experiences have taught me there are two types of business energy. I call the first type “head energy”. This is the energy that comes from wanting to do better or more with your small business.
• You want more profits.
• You want more customers.
• You want better marketing.

Head energy is very powerful. It can inspire. It can achieve dreams. It can drive you forward.
Head energy also has limitations. Head energy promises fulfillment in the future. Before the future arrives you must sustain yourself along the way. If you fail to sustain the head energy, your hopes and aspirations tumble down. They become “the good idea that was never achieved!”

Gut Energy
I call the second type of small business energy “gut energy”. This energy involves your current business worries; your current business mistakes; the business issues that need fixing right now.
• What is decreasing your profits now?
• What is preventing you from having more customers now?
• What are your current marketing mistakes?

I call this gut energy because it sits right in your gut, churning away. This is extremely powerful energy because it is so immediate. It is right now! It calls for immediate attention. Fix the situation now!
Gut energy is not as glamorous as head energy. It is always more fun to dream about your future than to do the hard work of fixing your current mistakes. But when you want to see immediate improvements in your business, turn to your gut energy.

9 Common Small Business Mistakes
Here I list the 9 most common small business mistakes. Ask yourself if you are making mistakes in any of these areas. If so, you have the opportunity to find powerful energy to move your business forward.
1. Lack of cash flow
2. Poor planning
3. Forgetting your customer
4. Selling versus marketing
5. Lacking needed expertise
6. Misunderstanding credit
7. Becoming an advertising victim
8. Poor customer shopping experiences
9. Making yourself the center of your business

If you find yourself wondering how you can use your mistakes to grow your business, you may want to request my free report, 9 Mistakes That Can Kill Your Small Business. In the report, I provide more details about each of these business mistakes and ways to fix them. You can achieve powerful results in fixing your business mistakes. The report will help you find ways to use this energy to grow your business faster.
To obtain this free report, 9 Mistakes That Can Kill Your Small Business, click here, Free Report, a preaddressed email will be pop up, press the send button. The report will be sent to you via email with the report attached.

Conclusion
Head energy is a necessary part of every small business operation. It provides the vision you need for the future. For quick and immediate improvements, do not over look the gut energy you will find in fixing your current business mistakes. Your gut energy will offer a wonderful opportunity for growing your business in a fast and easy way. 

Flood warning issued for parts of Lewis, Thurston, Pierce counties

The National Weather Service has issued a flood warning for the:

• Newaukum River near Chehalis (reaching flood stage this evening, continuing through Weds night or Thursday)
• Chehalis River near Doty (this evening)
• Chehalis River at Centralia (late tonight)
• and the Chehalis River near Grand Mound. (late tonight)

"Minor to moderate flooding is expected along the Chehalis and Newaukum Rivers beginning this evening," the weather service says.

In addition, a flood watch remains in effect for the lower reach of the Chehalis River in Grays Harbor County, where the NWS says flooding is possible starting late Wednesday.

Up to 4 inches of rain has fallen in the Chehalis River Basin during the past 24 hours. Another 2-5 inches is expected from now through Wednesday night. For more details, including specific roads and areas likely to flood, click the link above.

Here's the critical part, from our perspective: Flood damage is not covered under a standard homeowners insurance policy. If you want coverage against flooding -- and your lender may require it if you live in a flood-prone area -- you'll need to buy extra coverage.

For most homeowners, that means going to the National Flood Insurance Program, a federally run insurance plan that's sold by local agents. But the coverage takes 30 days before it goes into effect. Flood season is long in the Pacific Northwest. If you think you're at risk -- and see the red "One-stop flood risk profile" box check your flood risk and get an estimate of premiums -- definitely consider flood insurance. And don't delay.

Update: (12:02 p.m.) A new alert has been issued for minor flooding along the Puyallup River near Orting and the Deschutes River near Rainier.

Two warranty companies ordered to stop selling in Washington

We issued a cease and desist against Charter Warranty Services of Detroit, MI and TracGuard Services of North Miami, FL, ordering both to stop selling protection products in our state without a license.

Both companies were selling motor vehicle service contracts and protection products guarantees but had not registered with us. In Washington state, all motor vehicle service contract and protection product providers must register with our office.

If they fail to do so, they're required to get a certificate of authority to act as an insurer and get an agent or producer license in order to sell their products.

Don't recognize these two companies, but still wondering if you should get a warranty on your next big purchase? We can help. See if the company is registered before you buy a policy.

And consider these helpful tips on negotiating a price and what to ask before you buy.

Wind warning for tonight

The National Weather Service is predicting gusts of up to 60 miles per hour in parts of Washington state tonight, including San Juan County, western Whatcom County, western Skagit County and the Admiralty Inlet area.

The day after windstorms, we often get a wave of calls from people with toppled trees, debris-damaged cars, etc.

To help, we put together this list of typical questions, including:

Am I covered if my car was damaged by falling tree limbs?
My yard is covered with branches and debris. Will my insurer pay the cleanup costs?
My boat sank from strong winds. Am I covered?
My business' awning was damaged by the wind. Can I file a claim?

Be careful out there.

Sentencing this afternoon for insurance agent who stole $1 million from elderly clients

Former insurance agent Jasmine Jamrus-Kassim is scheduled to be sentenced later today for stealing more than $1 million in retirement savings from several elderly clients. Jamrus-Kassim pleaded guilty last month to 10 counts of first-degree theft.

The King County Prosecutors Office is seeking an exceptional prison sentence of 68 months. The case is State v. Jamrus-Kassim, with sentencing slated at 3:30 p.m. before Judge Sharon Armstrong in courtroom E-847.

From 2007 to late 2009, several of Jamrus-Kassim's clients cashed out large portions of their retirement accounts, apparently thinking they were re-investing the money. In reality, the money went to Jamrus-Kassim, who spent tens of thousands of dollars on a psychic hotline, clothes, jewelry and a trip to Mexico.

An investigation by the Washington insurance commissioner's Special Investigations Unit led to her arrest in March. 

And Bankers Life and Casualty, one of the companies that Jamrus-Kassim worked for, agreed last month to repay the money that Jamrus-Kassim stole. 

Update: As it turned out, sentencing was continued until Dec. 9 after Jamrus-Kassim demanded a new attorney.

After the latest advice concerning small business insurance rates

After the latest advice concerning small business insurance rates

After the latest advice concerning small business insurance rates. Often when you are looking for superior advice about small business insurance rates, you'll find it difficult separating value packed information from misguided small business insurance rates submissions and proposals so it's prudent to know how to qualify the information you are often given.

Now we'd like to give you a few tips which we advise you to use when you are trying to find information about small business insurance rates. Bear in mind the guidance we put forward is only relevant to internet information about small business insurance rates. We don't offer any assistance or guidance if you are receiving information offline.

A great tip to pursue when offered information or advice on a small business insurance rates page would be to confirm the sites ownership. This may show you the people behind the site small business insurance rates credibility The quickest way to work out who owns the small business insurance rates site is to find the 'about' page.

All highly regarded sites providing information about small business insurance rates, will almost certainly provide an 'about' or 'contact' page which will list the owner's details. The fine points should tell some indication concerning the owner's requisite knowledge. You can then make a judgement about the vendor's insight and appreciation, to provide advice to you regarding small business insurance rates.
 

Are insurers looking at your Facebook page?

There's an interesting article in Insurance & Technology, detailing the ways in which insurers could use -- and in some cases, are starting to use -- the information you post on your social media sites.

"When placed in public areas of users' profiles, these photos -- not to mention location information and personal statements in status updates -- represent data insurers can potentially use for claims and underwriting purposes,"

writes I&T's Nathan Golia, citing an October report from consulting firm Celent.

In a summary of the report, ABA Banking Journal called social media "a huge marketing and engagement potential for insurers," adding that:

"Most insurers are currently involved in only defensive actions. Celent expects that over the next three years, companies familiar with social media will being to apply social data to their buisinesses," and looking for vendors to help them capture, store and analyze social media data.

Insurance Networking News also reports that:

Celent predicts that social data will be incorporated into core underwriting and claims processes over the next three years and become standard inputs into risk evaluation and settlement activities."

In other words, your insurer may not be reading your Facebook profile or Tweets yet. But it may be soon.

Win Federal Contracts for Your Small Business

Win Federal Contracts for Your Small Business

The United States Federal Government spends more than $600 billion dollars each year on buying goods and services from the private sector. The federal government is the world biggest consumer of goods and services, and advanced technology systems. The government purchases an array of products and services in nearly every category. The federal government spends billions of dollars yearly on training and development, information technology, telecommunication products, law enforcement, fire safety, management consulting, medical services, environmental services, just to name a few.

Are there real federal opportunities for your small business? I can’t tell you with certainty that it does but I can tell you that federal policy actively encourages agencies to give procurement preferences to small, small disadvantaged and women owned firms by establishing annual procurement goals. The enormous federal marketplace offers potentially lucrative business opportunities.

The Small Business Administration negotiates annual procurement goals with each agency to ensure that small, minority and women owned firms get their fair share of federal procurement contracts.

Example of Federal Procurement Contract Award Goals for Fiscal Year 2005

• 23 percent of prime contracts for small businesses
• 5 percent of prime and subcontracts for small disadvantaged businesses
• 5 percent of prime and subcontracts for women-owned businesses
• 3 percent of prime and subcontracts for HubZone small businesses
• 3 percent of prime and subcontracts for service disabled veteran owned businesses

Under the Small Business Act all federal government contracts under $100,000 must be targeted to small, small disadvantaged, small women-owed and small service disabled
owned companies. This federal law creates very distinct marketing advantages and business opportunities for small, minority, and women owned businesses seeking to to business with the federal government.

The Federal Government provides small businesses with procurement resources within Federal Agency Offices and Specialize Programs.

Here are some of the Small Business Procurement resources:

• Offices of Small and Disadvantaged Business Utilization (OSDU) within federal agencies is responsible for promoting the use of small, small disadvantage and special status businesses.
• Small Business Administration’s Office of Government Contracts administers programs and services designed to help small businesses meet the requirement necessary to compete for and receive contracts.
• Mentor-Protégé Program is designed to encourage federal prime contractors to form a partnership and provide technical assistance to Small Business Administration certified women-owned, small disadvantaged and small businesses owned and controlled by service disabled veterans.
• WomenBiz.gov is an online gateway for women owned business seeking to do business with the federal government.

Minority Business Development Agency which is part of the United States Department of Commerce offers assistance to minority owned businesses.


The Federal Government is a major and growing marketplace. With over 2500 buying offices nationwide and expanding budgets buyers are waiting to hear from your small business. The financial rewards are well worth the time and efforts. Don’t sit on the sidelines recession proof your small business and start marketing your products and services to the federal government. Get your slice of the $600 billion dollar federal contracting pie.

Government Grants - What are they and how to get them ?

Government Grants - What are they and how to get them ?

None of these Government Grants require a credit check, collateral, security deposits or co-signers, you can apply even if you have a bankruptcy or bad credit, it doesn't matter. Its Free Money Never Repay!

The Federal Government is Giving out over 155.5 billion dollars in Business Grants!
Receive Government Small Business Grants for virtually any type of business. Whether it is to start a business or expand your existing business there is money for waiting just for you. The Federal government provides this money to help existing small business owners and those who want to start their own business change their lives and achieve financial independence.

The United States Government wants your Small Business to succeed and you will be amazed at the lengths they will go to help ensure your success. At Grant Seeker Pro™ we have designed a State of the art software program that will aid you in locating the perfect grant or grants for your small business!

Once you find the programs for Small Business Grants that fit your needs you can use the Grant Seeker Pro™ software program to complete the applications! Don't forget to use your Grant Seeker Pro™ to complete your business plan also!

Facts About Government Business Grants:

1. Over 20 million people gets Government grants every year
2. Over 10 BILLION dollars for entrepreneurs in the form of Low Interest Small Business Loans.
3. 4,000,000 people get money to invest in real estate!
4. Did you know that if every business in America were to apply for and receive an equal share of Government Small Business Grants that each and every business in this great country would receive a $70,000 free cash grant?
5. Did you know that H. Ross Perot has received Government Small Business Grants?
6. Did you know Paul Newman has received Business Grants.
7. Did you know Donald Trump has used Small Business Grants to fund many programs.
8. Most recently the airlines have received Billions in grants to make sure they stay afloat through these troubled times.

Learn about complicated Tax Refunds or Tax Credits. These are programs largely overlooked by the Small Business owner. At tax time these special incentive programs can (depending on the size of your business) save you tens of thousands of dollars!

In spite of the perception that people should not look to the government for help, the great government give-away programs have remained so incredibly huge that if each of the approximately 8 million businesses applied for an equal share, they would each receive over $70,000.

Thought Affirmative Action was dead? If you did you thought wrong. Though many of the catch phrases are no longer in use most of the money that was available still is.

Every year Congressmen and Senators make promises to the people that put them in office. Many of those promises are made to minority groups in specific areas but most are made at a National level.

There are also Reserved Free Government Cash Grants now available for the following special interest groups. American Indians, Veterans, Family Members of Veterans, Low Income Families, Community Block Grants, Non Profit Organizations, First Time Home Buyers, Artists, Musicians, Nurses, Teachers, Researchers, The Disabled, People Suffering From HIV and AIDS, Substance Abuse. There are literally Millions Available; All you have to do is ask!

Can You Imagine receiving:
One Billion Dollars in Minority Business Grants for business start up!
Millions in Minority Business Grants to expand your existing business!
Receive $8,000 in Minority Grant for Free Legal Advice!
Millions Available In Minority Grants for the purchase of your first home!
Receive $75,000 Housing Grant to Remodel Your House!
Receive $6,000 in Minority Scholarship Grants for College Tuition! 

Tacoma landlords charged with insurance fraud

A Pierce County couple and an acquaintance of theirs have each been charged with one felony count of insurance fraud.

William Harold Dummitt and Carole A Dummitt-Dombrowski rent out a cottage behind their home in Tacoma. On Nov. 25, 2010, the cottage had a water leak. The Dummitts submitted a claim to their insurer, USAA.

But they allegedly inflated their loss by claiming they’d been getting more rent from the cottage than they did – and to try to prove that by forging a renter’s signature on a false rental agreement.

Their acquaintance, Philip R. Burgess, told an investigator that he’d moved into the cottage on Dec. 1, 2010 and had to move out because of the sudden leak. But when the leak actually happened – Nov. 25, 2010 – Burgess was actually living in Portland, Ore.

Arraignment is scheduled for Nov. 18.

Update: (Feb. 1, 2012): William and Carole Dummitt each pleaded guilty to one count of false claims or proof in an insurance claim. Both were ordered to pay $1,200 in costs and assessments, and were each sentenced to 3 days in jail, which was converted to 24 hours of community service.

Advertising vs. PR in Your Small Business Marketing Strategy

 Advertising vs. PR in Your Small Business Marketing Strategy

A great small business marketing strategy includes a mix of tactics. Advertising and PR are two very important tools that all small business owners need to be using regularly. Many small businesses I talk to do one of the other, but don't commit to doing both. Each has its strengths and weaknesses and are complimentary to each other.

Small Business Advertising Strengths:

• The biggest advantage with small business advertising is your complete control over the message. You get to focus on whatever you want, write the text, and choose the visuals. You ensure that your marketing message is delivered.
• You control placement. You choose the exact timing and media in which your advertising is placed. This is a huge advantage because naturally you are going to choose to place your ads where your target market is most likely to see them.
• You can repeat your messages over and over again. Effective small business marketing incorporates a high degree of repetition and consistency. Advertising can and should be run on regular schedules.
• With advertising, you (and your budget) control your marketing saturation. You can run the same ad across different publications serving the same market, run matching Internet advertising, put an ad on the radio, do cable TV, do outdoor advertising, etc. Ideally you need to be reaching your target market at least 4 different ways for them to respond.

Advertising Weaknesses

• Advertising generally costs money. Most small businesses don't have a huge budget for marketing. Sometimes being creative can help defray costs. Sometimes you can trade for advertising space. You may be able to do co-op advertising.
• Small business advertising needs to be very targeted to be effective. Sometimes the only choices you have in your community are mass-market like newspapers. You still need to advertise, but some of your marketing dollars will be spent to advertise to people who don't want or need what you're selling.
• Most small business advertising stinks. I hate to say it, but it's true. Many do-it-yourself advertisers don't understand that there are advertising fundamentals that work. A good ad will always out-pull a bad one. Here's my plug: If you can't invest the time and money to learn how advertising REALLY works, get yourself a small business marketing coach to help you build more effective campaigns. It will be money well invested.

PR Strengths:

• It's FREE! OK, you might incur a very small charge if you hire someone to write and distribute a press release for you, but this is minimal. I think the reason why most small businesses don't do PR is that they don't know how it's done. Again, get some coaching, or pay someone to do it for you.
• Press is trusted more than advertising. If you read a review that says that a new restaurant is the best thing in town, there's some credibility there. We tend to assume that a person who is writing an article is an expert, and that they are an uninterested third party.
• You can distribute PR globally. As long as what you are doing is actually interesting globally, you can distribute your press releases globally. This isn't necessarily as targeted as your advertising needs to be, but you're not paying for editorial. By the way, never pay for editorial, and don't advertise with media that promises to give you editorial as long as you advertise. This is unethical and transparent - and the credibility of the media will always be in question.

PR Weaknesses:

• You have no control over what the press is actually going to write or say about you. They may spell your name wrong, they may get some details wrong, they may choose to focus on something you don't want to highlight. In general this isn't a big issue, as long as they are saying good things about you.
• PR tends to be single exposure. Unless circumstances are really unusual, the press is not going to run the same story over and over again. I have been involved with an exception to that. I was doing something that corresponded with a current event and the press came to me again and again over 4 weeks for TV interviews. This was pure timing. It's difficult to engineer press like that without seeming mercenary.
• There is no guarantee that you're even going to get coverage. I was called to do a TV interview once and rushed into the city to meet the reporter and photographer. On my way in ,the reporter called me on my cell phone to tell me they were pulling the story because there was breaking news that they had to go cover. Depending on what's going on you may get tons of press or none at all.

You see that small business advertising and PR are different things. You need them both, and you need to work at both of them consistently. They are two important tools in your small business marketing toolbox.

What Software Do You Need For Your Small Business

What Software Do You Need For Your Small Business

When running a small business there can be several jobs and tasks to take care of. Obviously knowing where the money is coming from and going is essential to running your business. That's why it is good to find out which small business accounting software is best for you to help you run a well organized and efficient small business.

There are hundreds to thousands of small business accounting software out there to help you with reports and tools needed to use your financial data. Depending on the one you go with will depend on how much you're going to pay for it. The more you pay, the more accessories and programs there will be that come with it. Some come with a billing and time module, various amounts of financial and management reports, and more. You can choose to get it in different editions from basic, online, pro, or premier for your computer.

One small business accounting software that is recommended is the 2005 Peachtree Complete Accounting. This is a multi-user ready system that provides you with all the features needed. You'll have features including in-depth inventory, job costing, time and billing, fixed assets and more. With all these great features the price of this runs between $165-$290 as it is sold by different merchants. You can shop for this product through the different merchants here:

http://about.pricegrabber.com/search_getprod.php/masterid=2936006/search=Peachtree%20Complete

Another feature that is offered with certain software is the capability to scale as your business grows. That is just one of the many features that the high end Microsoft Business Solutions Small Business Financials North America Edition offers. Also included in this program is the capability of keeping record of financial management, sales, purchasing, inventory, payroll, and reporting. This is software that will easily allow you to run an organized small business and keep track of the people in it and all of the numbers associated with running a small business.

This software will give you everything that you'll truly need. With this high end software is a hefty price as it runs between $995-4,500, so you'll have to decide how big your small business is going to get. If you're going to be running a large small business, then this will be worth it to help keep track of all the payrolls and inventory and more. On the website listed below, you'll also see a free 60-day CD demo that you can try it
out first to see if you like it.

http://www.2020software.com/products/Microsoft_Business_Solutions_Small_Business_Financials_North_America_Edition.asp

There is plenty more software to choose from, but there's a high end software and a cheaper software to check out. If you go to http://www.2020software.com/default.asp you'll find a list of what this website claims the top 7 software out there. Included on this list is the Microsoft software I have briefly talked about just above.

This list is going to consist of the more expensive software out there. All of the software on the list is priced at above $1,000 with some of them reaching the $100,000 mark. While it is pricey, it will install very easily, be very secure over the internet and computer, and offer all kinds of features you wouldn't even consider such as a built-in report writer to help deliver the content in the format you need.

Now you know the general price range for accounting software and the features you'll get for what you pay for. In order to get a good quality software for your small business it's going to be pricey, but it will help keep your business organized and in tact. So don't be afraid to drop some money on software that will help expand your business in the long run. 

Business Disaster? Won't Happen to Me

Business Disaster? Won't Happen to Me

 As fast as you can say business disaster, your business can go up in smoke. That's what happened a while back to Castle Carpet One. Gone were thousands of dollars worth of equipment and carpet, plus two smaller businesses that were housed in the same building. Luckily the owners, Larry and Diane Cox, had plenty of business insurance to cover their physical losses. But they lost their most important business asset - customer records - because of failed back up systems. Rebuilding their customer base will be tough and the long-term revenue impact is hard to measure.

With disasters like hurricanes, tornados, fires, floods and terrorism, to name a few, it's critical for small companies to have a disaster plan. And for companies with only one location, it's even more important. One location companies have the potential to lose the entire business if disaster strikes. For a home-based business, it's even worse. You could lose your home and your business in one swoop. Any small business owner can minimize the damage by simply having proactive strategies in place to deal with an emergency when it happens. What if:

• You arrive at your business to find it vandalized and all of your customer records missing?
• Your most critical employee becomes ill and requires an extended absence?
• Your computer hard drive (or network) crashes?
• You become the primary care giver for a sick family member?
• You become ill and can't manage your customer commitments?
• Your business becomes inaccessible because of an emergency on your street?

What would you do? Would your business survive? What would you grab if you had to leave your business quickly? After the emergency, how would you communicate with your employees? Customers? How long would it take to get back to business as usual?

Without a disaster plan, you'll have a harder time getting back to work. Most businesspeople think it will just take two or three days. That's tough to do if you have no plan for action and little money to move forward. The reality, experts say, is more like several months and at least 25 percent of businesses that experience a disaster never reopen.

But most small business owners just don't make time for planning. We think it's "never going to happen to us." It could. The time to formalize a game plan for an emergency is before it happens. Do it now.

Small Business CRM Is Here To Stay

Small Business CRM Is Here To Stay

If you ask most small business owners what priority CRM has in their short-term business plans, chances are you’ll get more than one blank stare. The fact is that most small business owners don’t even know what CRM is not to mention how significantly it can benefit their growing company. This prevailing ignorance of small business CRM (customer relationship management) usually stems from just a few basic causes.

Excuses not to invest in small business CRM
The first and most common reason for disinterest in small business CRM is the very nature of small business. With limited financial and personnel resources at their disposal, business owners believe they can’t afford the money or time that a small business CRM system would require to show a significant ROI. Often times the chief concern is just staying afloat long enough to sign that big contract or receive a large product order.

Still other owners of new businesses believe that they can build and maintain quality customer relations simply by the virtue of the their cordial personality or particular market niche. They see small business CRM as an unessential luxury to be enjoyed exclusively by their larger competitors. What these owners often find is that without sufficient small business CRM support their business will never expand beyond the number of customer names they can remember. The problem is compounded when the company expands into internet sales (an essential move by any growing company) and suddenly finds its present customer tracking system overwhelmed by the sheer amount of incoming customer information.

The Bottom Line
The bottom line, as all successful small business owners have learned, is that it takes more than one good idea to build long-term business growth and stability. You may be great at attracting new customers to your business, but if you fail to care for, track, and understand your customer base, not only will you hemorrhage your hard-won clientele, you will also fail to capitalize on future opportunities by not anticipating future market trends.

The Solution
The good news about small business CRM is that there is an increasing number of automated systems available at prices that most smaller companies can afford without too much difficulty, usually around $2000 a year. Some CRM companies, effectively eliminating the need for small business owners to micromanage their CRM system, largely manage newer small business CRM systems. Now small business owners can reap the benefits of a smooth running CRM system with a minimal time/financial investment.

Features to look for in a small business CRM system
There are many features available to small business CRM users designed to not only track sales, but also cause sales. Here are some features to look for.

• Power Dialing-This feature allows your outbound sales agents to place 300%-400% as many sales calls, effectively quadrupling your workforce.
• Voice Messaging System-Allows you to automatically record and send sales calls designed to elicit a customer call back.
• Custom Fax and Email-Following up on leads with timely fax and email can mean the difference between closing sales and missing out on potential revenue.

Other ‘must-have’ features include:

• Calendaring
• Marketing management
• Sales management
• Order and quote management
• Service management

With the ability to outsource these business functions, small business owners can concentrate on implementing strategies that they’ve had to hold off on due to lack of customer information and/or time. 

Term Life Insurance. What Is It All About?

Term Life Insurance. What Is It All About?

What is term life insurance? You have an interest in buying term life insurance, that is why you are reading this article, and you want to know how it really works. Right? Well, there are many types of term life insurance and I am going to give you a brief explanation as to how each one works. 

Decreasing Term Life Insurance

Decreasing term life insurance is very popular with home owners and mortgage companies. The homeowners want to know that the mortgage is paid off if they should prematurely die, and the mortgage company want to be assured that they are repaid the money loaned to the homeowner. The face amount of these policies decrease in a uniformed manner each year as the balance owed on the mortgage decreases, and the premium remains level. This is very inexpensive life insurance. 

Increasing Premium Term Life Insurance

This is initially the cheapest term life insurance you can buy. The death benefit remains level for the duration, however, the premiums increase every year and as a result this may turn out to be the most expensive term life insurance you can buy. If you should purchase this policy it would be wise to convert to a level plan as quickly as possible. 

5 Year Level Term Insurance

The face amount of this policy remains level for the entire 5 year period and so does the premium. Upon death the face amount is paid either in one lump sum or in the form of an income. If you have a short term need for life insurance, like covering a bank loan, then this may be the plan for you.

10 Year Term Life Insurance 

Like the 5 year term life insurance policy, the ten year term life policy can be used to cover a bank loan, but it can do considerably more. It can be used for family protection and a myriad of other needs. The face amount of the policy remains level for the duration and so does the premium. Some companies allow you to continue the policy after 10 years with an increase in premium.

20 Year Term Life Insurance

The 20 year term life insurance policy is probably the most popular of term life policies. The death benefit remains level for the duration and in some cases so does the premium. With some companies, however, the premiums increase after the first 10 years to reflect the cost of the additional risk to which the insurance company is exposed as the insured gets older. All in all, the 20 tear term life insurance policy is fairly inexpensive and does the job it is intended to do. 

Unlike whole life insurance, universal life insurance or variable life insurance, term life insurance does not have cash values or earn dividends. There is a fairly new type of term life insurance policy, however, called a return of premium policy which returns all your premiums at the end of the term period, if you do not die. The premiums are so high it may not be worth your while to buy this type of term policy.

3 Essential Tools for Starting and Maintaining a Small Business

3 Essential Tools for Starting and Maintaining a Small Business

We believe that there are 3 factors that drive the success of small businesses.
1) Acquiring start-up capital
2) Finding customers
3) Accounting for, budgeting and controlling sales and expenses


The following resources will help your small business achieve these success factors.
Acquiring Start-Up Capital
An adequate supply of capital is essential as many profitable businesses fail because they don’t have enough cash to pay their employees and suppliers. But what is an adequate supply of capital? The only way to tell is by doing a significant amount of research on your potential market and formally documenting this in a business plan. I’m sure you know that a business plan is a very important document that is crucial to convincing your banker to lend you money.


There are two ways to obtain a business plan.
1) Do it yourself by amending a business plan template, or
2) Hire a professional to do it for you.


Obviously obtain 1) will be a great deal cheaper.
Our research led to a website that has over 60 high quality and free business plan templates. We also found a directory that you can use to easily find a business plan writer in your city – where ever you live in the world.


Finding Customers
Finding customers is a difficult and expensive task for service business owners such as accountants, lawyers and plumbers. We believe that a cost effective marketing strategy for service business owners is to simply give all their personal contacts a few business cards.

Our research led to a few websites that have pre-designed business card templates. We felt that the diversity and quality of these designs was outstanding. In addition, we found that you can obtain a significant saving by finding a printing service on the Internet. We found that you could get 2,000 full color business cards for as little as US $150.

Accounting For, Budgeting and Controlling Revenue and Expenses
Accurate accounting is very important for small business owners. It’s essential that you have timely access to information that could make or break your business. If stocks are running low – you need to know about it. If a large proportion of your debtors haven’t paid – you need to know about it. If you do not react to these situations quickly you may have a situation where you don’t have enough money to pay your employees – or worse still someone is stealing cash out the till.

Our research led to a website that compares and reviews top accounting software for small businesses. The cheapest software cost US $89.99 and the most expensive software cost US $1,499. It was interesting to note that the top 3 ranked websites were not the most expensive and cost between US $250 - US $300.

Hopefully you now have an idea of some of the tools that you can use to grow and maintain your small business. If you would like to benefit from our research please visit our website. We do not charge for this research and offer the content freely on our website.