Here are 5 myths about side hustles you can't afford to ignore - CNBC

Here are 5 myths about side hustles you can't afford to ignore - CNBC

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Here are 5 myths about side hustles you can't afford to ignore - CNBC Posted: 19 Jun 2019 04:56 AM PDT A few years ago Demia Doggette saw fashion bloggers and Instagrammers turning their online personas into business empires, and she thought she could follow suit. While working at a public relations agency full-time, Doggette, now 32, launched her blog, Beautiful Epiphany. She spent more than $1,000 setting up the company, hoping it would generate revenue to supplement her income. "I invested in a professional camera and hired someone to create the perfect website," the Orlando resident says. "I did my homework on the topic of blogging, and I just knew I would be the next big thing." Doggette isn't the only one looking for additional work to bring in cash, as wage growth continues to lag, with hourly earning rising just one tenth of a percent. Workers struggling with student loans and the rising cost of health care, housing and child care are looking for ways to boost the income side of their household balance sheet. Two-thirds of side hustlers say they took on a second job in order to have more spending money, and 56% do it to increase their savings, according to CreditLoan.com. The advent of the gig economy and platforms that make it easy to find flexible work outside of business hours has nearly a third of workers maintaining a side hustle in addition to their regular jobs. Still, they're often not a long-term solution. More than 60% of Uber drivers lasted less than six months on the platform. "Side hustles always sound like they're going to be this cool, entrepreneurial activity," says Arne Kalleberg, a sociology professor at the University of North Carolina at Chapel Hill who studies labor force issues. "That's part of the PR and the lure of these platform companies — that you can work and make money whenever you want and be flexible. But that's not always the case. Demia Doggette became a fashion blogger to supplement her income but learned it wasn't easy. Allison Johnson of Allison Johnson Photography Some side hustles are nothing more than pyramid schemes disguised as multilevel marketing programs that can lead to major financial losses. Even legitimate business ideas can get expensive quickly. One study found that the first-year cost of an entrepreneurial side hustle was more than $16,000. There's no shortage of stories about the people who side-hustled their way out of debt or who launched a multimillion-dollar business while holding down a 9-to-5 job. For many would-be side hustlers, however, the reality of working two or more jobs is less glamorous — and often less profitable. That was the case for Doggette. After about a year of writing and posting daily, the blog still hadn't gained traction and she hadn't earned any revenue. She started investing less time and money in it. Eventually, she stopped posting entirely. If you're thinking of trying your hand at a side hustle, here are five myths to keep in mind. 1. Everyone needs a side hustle. While there are plenty of advantages to bringing in extra money, taking on the added responsibility of a side hustle can mean more stress and less personal time. If you're happy with your current job and are making enough money to feel financially secure and not harboring dreams of entrepreneurship, spending time on a side hustle may simply add unnecessary stress to your life. "Every hour that you spend working is an hour that has to come from somewhere else in your life, whether that's sleep, leisure time or your time with family and friends." says Alexandrea Ravenelle, author of Hustle and Gig: Struggling for Survival in the Sharing Economy. " 2. Your side hustle will solve all your money problems. Additional income can make it easier to make a dent in your student debt or to save up for a home down payment, but side hustlers often underestimate both the amount of money they'll bring in and how much they'll spend on expenses to keep it going. Uber and Lyft drivers, for example, need to pay for gas, additional car maintenance and rideshare insurance. Other gig platforms also have expenses, including application fees and commissions that can cut into your rate. "These platforms are notoriously bad at being transparent about what workers are getting paid," Ravenelle says. "It's not unusual to think you're getting one amount and you're actually making much less." TaskRabbit, for example, takes a 15% service fee on all jobs. After factoring in taxes and travel expenses, a gigger might only actually net $60 on a job that paid $100. More from Invest in You: Jim Cramer recalls 'money talks' with his dad Millennials say buying a home may finally be in reach Parents need to use real life lessons to teach kids about money 3. There won't be an impact on your full-time job. One in five side hustlers admit to working on their part-time gig while at their primary job, according to CreditLoan.com. Even if your goal is to keep the side hustle entirely separate from your main gig, it may creep in. Whether you're answering occasional emails or text messages or are less attentive because you're stretched thin from working additional hours, having a side hustle will make you less focused on your current job. In some instances your side hustle might even put your full-time job at risk, so check your employee handbook or ask HR whether there are restrictions on the type of outside work you can do, particularly if it might pose a conflict of interest, Ravenelle advises. "A car service might not want workers driving for Uber in their free time, or a graphic design company might look down upon a worker offering discounted services on Fiverr," she says. 4. Turning your passion into profit is a dream side hustle. For many people the side hustle grows out of a hobby they truly enjoy. Once your photography or knitting or cookie-baking becomes a business, however, it can be hard to maintain the passion. Plus, you're no longer responsible for simply producing the product itself. You also now have to do all the other things that go along with the business, such as marketing, accounting and invoicing, which you may find far less enjoyable. 5. It's easy to turn a side hustle into a profitable business. It's certainly possible to start a side hustle that grows into a business of its own. But it's not easy. You'll need to put in long hours and be prepared for an emotional roller coaster that may not pay off in the end. Among entrepreneurs who have grown their small business from a side gig, one in four say their current company didn't come from their first side hustle, according to a study from Hiscox. One in five small businesses fails in the first year, and only about half make it to five years. Doggette ultimately did become a successful entrepreneur, but it wasn't via her blog. Instead, she launched her own public relations firm, The Couture Agency, and made that her primary focus. "I'm fulfilled now and making more money working full-time for my own agency," Doggette says. "I don't have another side hustle. I don't have time for it." Check out How a couple's whiteboard strategy helped them pay off $18,000 in Debt in 2 years via Grow with Acorns+CNBC. Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.

Will a German investment in Ghana's youth slow down migration? - PRI Posted: 18 Jun 2019 06:00 AM PDT Halifax Osei Acheampong says there are few men his age left where he grew up. "All the youths are gone," Acheampong says. "They have gone to Libya to look for work." Acheampong lives in Sunyani, a mid-sized city of about 200,000 in central Ghana. He's not ready yet to leave for Libya — and European governments are sponsoring programs to encourage men like Acheampong to stay in Ghana. In the Sunyani area, communities crowdfund to help young men migrate via Libya to Europe in the hopes of remittances that, in turn, enable more young men to migrate. It's home to 52% of all returnees rescued from Libya by the Ghanaian government during the 2011 uprising and subsequent civil war.  "All the youths are gone. They have gone to Libya to look for work." Halifax Osei Acheampong, entrepeneur "I have a cousin and an uncle who went to Libya and now they are in Europe," Acheampong tells The World. Another cousin died while living in Libya.  "Now that there is a crisis in Libya, some [migrants] suffer from gun wounds, some are going through torture and slavery," says Superintendent Haruna Alhassan of Ghana's Migration Information Center, based in Sunyani — the first of its kind to provide information on migration safety.  In 2019, about 555 migrants died in the Mediterranean Sea trying to reach Europe, according to the latest figures from the International Organization for Migration. Acheampong, 30, has also contemplated leaving Ghana many times but has so far not done it. Instead, he started a small graphic design practice in 2018 making screen-printed T-shirts.  Now he's part of a business entrepreneurship program that he hopes will help him turn his company, "Haliwear," into a profitable venture so that he can employ others and keep his friends from leaving. The project, funded by GIZ, the German development agency, is part of a larger pan-European effort to stop Ghanaian migration to Europe.  Between January and March 2019, five-day boot camps were held in Accra, Kumasi and Sunyani. More than 3,200 young entrepreneurs participated.  These cities were chosen because youth have migrated via Libya to Europe in higher numbers than anywhere else in Ghana to look for jobs and a better life.  Unlike many of the other African countries where people flee for Europe, Ghana is a robust democracy with good economic prospects. It's the fastest growing economy in the world in 2019, according to projections by the International Monetary Fund. But that hasn't stopped thousands of young Ghanaians from attempting the perilous journey to Europe via the Mediterranean in search of greener pastures.  Related: African migrants are reaching Europe with tales of kidnap and torture in Libya According to the International Organization for Migration, 62,422 Ghanaians remained stranded in migrant detention centers in Libya alone in March 2018. Ghanaians formed the fifth highest number (out of 38 nationalities) of detained migrants after Egyptians, Nigeriens, Chadians and Sudanese. That's because structural problems belie Ghana's economic projections and stellar GDP figures: Ghana's new wealth, precipitated by the discovery of oil, has yet to trickle down to many — especially young people — in rural Ghana.  Unfair global trade rules and the enduring legacy of British colonialism means Ghana is still dependent on the export of raw materials, such as cocoa, which hit a 10-year low in 2018. Ghana and the Ivory Coast, producers of 70% of the world's cocoa, agreed in June on a minimum price for cocoa to try to protect farmers.  The unemployment rate of 6.7% is marginally above the sub-Saharan Africa rate. And the situation is most bleak for youth without formal education qualifications. Big dreams, small businesses Paul Nana Nketiah, a 46-year-old accountant, stands before a small, attentive class, including Acheampong. He teaches the basics of budgets and business plans: "Financial management starts with a budget," he says.  Nketiah teaches young Ghanaians how to own and manage a business as part of the second round of GIZ's entrepreneurship program — officially called "Jobs for Youth: Migration and Employment Promotion Project."  After an open pitching competition, 400 entrepreneurs get selected to move on to the second stage, which includes four months of "business incubation" classes. Out of this cohort, only 90 will take part in three months of "business acceleration" classes and just 10 will go on to receive funding to scale up their business ideas.  Classes such as the ones Nketiah teaches are part of wide-ranging efforts across Europe to stop migration and to show that "alternatives to irregular migration do exist in the country," says Alan Walsch, head of GIZ in Ghana. The EU's other initiatives include bolstering patrols on the Mediterranean while strengthening the coastguards of North African countries. Despite the militarized seas and gruesome testimonies, many still attempt the trip.  Across Europe, far-right politicians are on the ascent, riding on a wave of populism and xenophobia. In European Parliament elections last month, far-right parties swept to victory in a number of countries including Italy, France and the United Kingdom.  In Germany, an open-door policy has already cost Chancellor Angela Merkel her chancellorship. Merkel's decision to allow more than 1 million migrants and refugees have been praised, but it also ​​galvanized anti-immigration parties such as Alternative for Germany — now the third largest party in parliament. If Nketiah's business classes can prepare young Ghanaians for success in business, the idea is that it will keep them rooted in Ghana. But Nketiah can already see a few problems with the scheme.  "The challenge now is that they want to become rich overnight … Starting [the business] from humble beginnings, that's not what they want to hear. They want to start big."  Paul Nana Nketiah, 46, accountant, Sunyani, Ghana "The challenge now is that they want to become rich overnight … Starting [the business] from humble beginnings, that's not what they want to hear. They want to start big," he says. Daniel Ankamah Mensah, also one of Nketiah's students, acknowledges the urgency and desire for change.  "In 2017, I moved from my hometown to Accra to work on how I could get out of the country to continue my education and find a job because, after school, I wasn't getting employment," says Mensah, 28.  He graduated with a degree in biochemistry in 2014, but still hasn't gotten a job and says dozens of his university friends have already left the country for Europe. After his own plans to migrate failed, he returned to his hometown to start a yogurt-making business. But nearly a year later, it's yet to turn a profit. He hopes Nketiah's lessons will change that. About 90% of all Ghanaians who leave for Europe via the Mediterranean are young men aged 16 to 35, Superintendent Alhassan says. For young women, the destination is Gulf Arab countries where they find employment as domestic helpers under the kafala system which "can amount to forced labor," according to the United Nations. But the efficacy of the entrepreneurship program remains a question mark. Realistically, not all businesses will succeed and not everyone possesses the temerity to manage a business.  Professor Peter Quartey of the Center for Migration Studies at the University of Ghana has studied the use of aid by France to help minimize migration by setting up industries in areas with high migration with the hope that new jobs and income will stop people from leaving.  "The scale was very low and therefore it was not able to achieve very significant impact," he said. Quartey adds that a major shortfall of such initiatives is monitoring after the project ends.  "If, after the training, you equip them with capital and you don't ensure that the funds are used for the intended purpose, that will not help." Economic prosperity leads to greater security and mobility, and the GIZ-funded classes might convince some would-be migrants to try making a life at home. But it could also produce the reverse result.  For young entrepreneurs with big dreams, a small business might not be enough to keep them home if they are convinced of greener pastures in Frankfurt.

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Elizabeth Warren proposes $7 billion in grants for minority businesses - Vox.com

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• Elizabeth Warren proposes $7 billion in grants for minority businesses - Vox.com
• Nav Opens Small Business Grant to Help Owners Overcome Business Challenges - PRNewswire
• Small Business Grant Program Launched in Town of Union - wnbf.com
• E-commerce business gets grant funds - Coalfield.com

Elizabeth Warren proposes $7 billion in grants for minority businesses - Vox.com Posted: 15 Jun 2019 02:41 PM PDT Democratic presidential candidate Sen. Elizabeth Warren released a new plan on Friday to "level the playing field for entrepreneurs of color" by providing business grants to minorities in order to close the startup capital gap — the difference in capital available to white entrepreneurs versus entrepreneurs of color. Warren argues that "every American should have a fair shot at starting a small business" but says the playing field is currently drastically uneven, with entrepreneurs of color starting businesses with far less money than their white counterparts. She writes that disparity severely affects minority-owned businesses' ability to attract investors and apply for credit, as well as their bottom lines. "Disparity in startup capital is the single biggest reason that promising Black-owned businesses on average are less profitable and bring on fewer employees than white-owned businesses," she said. In order to level the playing field for entrepreneurs, Warren has a plan to distribute $7 billion to minority businesspeople. Every American should have a fair shot at starting a small business—but today, the playing field is tilted against Black and Brown entrepreneurs. My new plan would put an end to that. https://t.co/Vf9uKu12Yg — Elizabeth Warren (@ewarren) June 15, 2019 How the plan will work Warren proposes distributing $7 billion in grants through a new "Small Business Equity Fund." She stresses that the money will be in the form of grants, "not loans or loan guarantees," in order to ensure entrepreneurs can focus on growing their businesses rather than on repaying debt. The fund would be managed by Warren's comprehensive new Department of Economic Development, which Vox's Matthew Yglesias explained in a piece on Warren's "economic patriotism": One specific bullet point on Warren's policy agenda is to create a unified Department of Economic Development that would combine the functions of the Commerce Department with the Small Business Administration, the Patent and Trademark Office, various job training and R&D programs scattered around the bureaucracy, and the export and trade agencies including the Office of the US Trade Representative. The bureaucratic reorganization, however, is basically just to set the stage for a mission statement: "the new Department will have a single goal: creating and defending good American jobs." Although the Small Business Equity Fund would be overseen at the federal level, Warren sees state and local stakeholders as being key to distributing funds; she says her program will be modeled on the State Small Business Credit Initiative, a federal program that gave states a great degree of say in how they chose to distribute $1.5 billion. This freedom was given as officials felt local leaders have a better grasp of the needs of entrepreneurs in their states than federal officials would. Under Warren's plan, local governments would be required to work with minority investment managers to decide how the funds would be spent. The federal government would also create guidelines for who would be eligible for the grants: They would be limited to entrepreneurs who are eligible for the Small Business Administration's existing 8(a) program. To be eligible for that program, a business must be at least 51 percent owned and controlled by a socially and economically disadvantaged individual who has less than $100,000 in household wealth. This figure encompasses a large percentage of minority families; according to the Federal Reserve, the median net worth of a black family is $17,600, while the median net worth of a Latinx family is $20,700. Warren would also work at the federal level to increase the Minority Business Development Agency's budget — she pledges to triple its funding in her presidential budget. As with many of Warren's other plans, the cost of this proposal would be entirely covered by her proposed wealth tax, a 2 percent tax on every dollar of wealth an American owns above $50 million, and a 3 percent tax on every dollar of wealth above $1 billion. According to the candidate, the $7 billion investment would help create 100,000 new minority-owned businesses and as a result provide 1.1 million jobs. The startup capital gap, and why it matters Warren's proposal states that the startup capital gap is the single biggest reason minority-owned businesses are less profitable on average than white-owned businesses. And that capital gap is vast. The typical black entrepreneur, the candidate notes, starts a business with one-third the startup capital of the typical white entrepreneur. Part of this is due to difficulties receiving loans; another part of it is that minority families often have less wealth to invest in a family member's startup than white families do. As a Stanford Business School report found, "Latino business owners tend to depend on personal savings and seed funding from friends and family to start their businesses," and are "much more likely [than white entrepreneurs] to use personal guarantees than business assets to secure financing." Having less money at the beginning of a business makes it more difficult to attract money later on, as it limits the amount an entrepreneur can invest in things like prototyping, real estate, inventory, and marketing, all things that, when done successfully, attract new investors and credit. While the wealth threshold to quality for Warren's program may seem relatively low, $100,000 is far more than most minority families have on hand, according to the senator, who cites research that found $100,000 is roughly five times the median net worth of Latinx and black families and more than 10 times the median net worth of Native American families. Warren's plan invokes the language of reparations, something she has vocally endorsed on the campaign trail, particularly when it suggests that the government has an obligation to address the racial wealth gap "because the government helped create that wealth gap with decades of sanctioned discrimination." It is important to note, however, that this policy is for all minorities rather than just for black Americans. How Warren's plan compares to other candidates' plans Warren released her plan ahead of the Black Economic Alliance's presidential forum in South Carolina, which she will be attending alongside a number of other Democratic presidential candidates, including Cory Booker, Beto O'Rourke, and Pete Buttigieg. O'Rourke released his own small business plan on Saturday, focusing on women, communities of color, and small businesses more generally. His plan hopes to create 200,000 new small businesses to Warren's 100,000, and pledges a $10 billion small business credit initiative for "economically distressed areas" to Warren's $7 billion Small Business Equity Fund. Notably, O'Rourke's plan doesn't give funding directly to small-business owners in the form of grants. Instead, it funds a range of programs designed to increase loan accessibility and reduce discrimination. Like Warren, he has pledged to triple investment in the Minority Business Development Agency in order to provide resources and mentorship to minority small business owners. Booker is attending several South Carolina events around this weekend's forum, and is expected to use his stops to discuss the racial wealth gap and growing small businesses owned by African Americans, although he has not released a specific policy proposal. Others Democrats have proposed more small-business-friendly policies. Both O'Rourke and Tulsi Gabbard have suggested cutting or offering deductions on small business taxes, but proposals such as these fail to account for the wealth gap that prevents entrepreneurs of color from opening a business in the first place. This plan fits in well with Warren's myriad other plans Warren has the most plans of any 2020 candidate, but almost all of her plans have the same overarching purpose: erasing the wealth gap. Her overall platform is focused on what she calls "economic patriotism," and this new plan fits right into that larger vision. As Vox's Ezra Klein explained: Warren's tagline is "I have a plan for that." And on one level, it's true: She has a lot of plans. But a clearer way of understanding her pitch is she's got one plan that she applies over and over again. As Warren sees it, there's been a massive hoarding of wealth — and thus of power and opportunity — in this country. She wants to tax the wealth and redistribute both the money and the opportunity. She wants to break up concentrations of economic power by putting workers on corporate boards and unleashing antitrust regulators on Amazon and Facebook and ending Washington's revolving door. These are different policies, yes, but they all say the same thing: The wealthy have too much money and power, and Warren wants to change that. Her newest proposal is grounded in these same themes: It disparages an "uneven playing field," and she argues that it will "move us closer to an America where everyone has a fair shot to succeed." Economic issues remain a top concern for Democratic voters, and by adding her entrepreneurial investment plan to her portfolio of "economic patriotism" initiatives, Warren continues to suggest that addressing that concern is one of her top priorities.

Nav Opens Small Business Grant to Help Owners Overcome Business Challenges - PRNewswire Posted: 23 May 2019 12:00 AM PDT SALT LAKE CITY, May 23, 2019 /PRNewswire/ -- Today, Nav, a free site and app for small business owners to get matched to financing options and access their business credit scores, opened another round of the company's Small Business Grant, awarding $10,000 to a U.S. small business owner who needs capital to grow their business. "As a small business owner for the past 20 years, I know firsthand that the biggest pain point for business owners is accessing financing to help grow their business," shared Levi King, Nav CEO and Co-Founder. "Through Nav's Small Business Grant, our team has seen how life-changing an influx of capital can be for a small business. We're excited to continue offering this Grant and look forward to seeing everyone's application." Since launching the Grant in early 2018, Nav has awarded nearly $50,000 to businesses across the country, including the most recent winner Running Dogs Brewery, an Oregon-based Brewery run by husband and wife, Jaron and Maggie Clayton. In addition to the $10,000 grand prize, Nav also selects a runner-up and second runner-up, awarding $2,000 and $1,000 in prize money, respectively. The Nav Small Business Grant Contest is open to U.S.-based small businesses that have fewer than 99 employees and have been operating for six months or more. To enter, participants must: Sign up for a free Nav account Share on their company's Facebook or Instagram account about a challenge they are experiencing and how the Grant will be used to overcome that hurdle, tagging Nav (@navsmb) Provide direct links to the aforementioned social media posts Business owners can learn more about Nav's Small Business Grant and view full contest rules at Nav.com/business-grant-contest. While it is not required, participants are highly encouraged to learn about past winners - Private Detox of Utah, CJ's Bait and Tackle and Founding Foods - and consider using video to capture their business and bring personality to their application. The next contest is open from May 23 to Aug. 15, 2019, and the winners will be announced in September 2019. About Nav More than 500,000 small business owners use Nav to get more funding, lower their costs and save time so they can create the business of their dreams. It gives free access to business credit scores, cash-flow analysis, and tools to help build business credit. Nav's online marketplace offers more than 110 financing products, including loans and credit cards, and uses a lender-neutral algorithm to help business owners find the best financing options for their needs before they apply. The company has offices in Silicon Valley and Salt Lake City. For more information visit: nav.com. CONTACT: Amanda Triest Nav PR Manager atriest@nav.com 801-890-5024 SOURCE Nav Related Links http://www.nav.com

Small Business Grant Program Launched in Town of Union - wnbf.com Posted: 03 Jun 2019 12:00 AM PDT The town of Union is making available money to boost established and start-up businesses. Those interested in applying for the new grant program should advise the town by July 1. Town economic development director Joseph Moody said the initiative is designed to encourage expansion and retention of for-profit businesses with five or fewer employees. Moody said up to $10,000 in money may be available per grant. Several grants may be awarded. Businesses throughout the town of Union, including those in the villages of Endicott and Johnson City, may apply for the competitive grant program. The town of Union Local Development Corporation board of directors will review grant applications. The board is scheduled to announce the grant awards in September. Business operators can obtain more information at the town of Union economic development department website. Contact WNBF News reporter Bob Joseph: bob@wnbf.com For breaking news and updates on developing stories, follow @BinghamtonNow on Twitter.

E-commerce business gets grant funds - Coalfield.com Posted: 19 Jun 2019 08:00 AM PDT Connecting companies to their audiences with social media, engaging content and other digital outlets is how Blake Salyer, of Norton, describes the new direction of Winze Co. LLC. An e-commerce brand start-up, Winze now offers both creative services and fulfillment solutions for its client base. Salyer's business was recently approved for a $10,000 seed capital matching grant from the Virginia Coalfield Economic Development Authority. "Assisting small businesses in their initial start-up is the intent of the VCEDA Seed Capital Matching Grant fund," said VCEDA Executive Director/General Counsel Jonathan Belcher. "Winze proposes to assist other businesses in their media needs which in turn can further assist other businesses in realizing their own growth potential." Salyer worked with Tim Blankenbecler, of the Small Business Development Center at Mountain Empire Community College, in the development of his business plan and application to VCEDA. Winze Co. opened in February in the business incubator space in Norton. The company offers a wide range of services including branding, content creation, social media management, marketing, consulting and merchandise management. Prior to opening Winze, Salyer, a Norton area native, operated an Apple repair and support business. He lived in Johnson City, Tenn., for two years after college and did some freelance work there before deciding to return to Norton to open Winze Co. "I am excited to have this opportunity," Salyer said. "I look at this as an opportunity to bring meaningful work to the region and I hope in the process to create jobs and to hold on to young talent in the region." When starting a business, Salyer noted, some of the biggest challenges include having the needed equipment and operating capital. The seed capital grant, he said, has helped him to meet those challenges. The application projects two full-time jobs and one part-time job will be created within the first four years.

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A Midyear Legal Checkup For Small Business Owners - Forbes

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A Midyear Legal Checkup For Small Business Owners - Forbes Posted: 18 Jun 2019 10:04 AM PDT Too often, entrepreneurs take a reactive approach to reviewing the legal aspects of their business. But that can lead to avoidable liability risks, missed opportunities, and a less-than-ideal tax scenario. When business owners adopt a "don't fix it unless it's broken" mindset, they may not recognize ways they can improve their business. On the other hand, entrepreneurs who do a midyear legal checkup gain the insights they need to make informed decisions about their business entity type, tax election, and more. In this post, I'll share some legal considerations worth looking at—and asking an attorney for guidance about—to ensure your business stays on the most successful path. Conducting a midyear legal checkup of your company can provide you with insights you need to make informed decisions about your business entity type, tax election, and more. © penguiiin - Fotolia.com 1. Is your business structure still the right choice for your company? Many businesses begin as one type of business entity type, and then as they grow and become more complex, they discover a different structure will better suit their needs. For example, often one-person businesses begin as sole proprietorships to keep administration simple and compliance responsibilities minimal, but as they hire employees, expand services, and gain more customers, they opt to form an LLC or incorporate to obtain liability protection, tax flexibility (e.g., S Corp election), and more funding opportunities (e.g., attracting investors or being able to sell stock). 2. Does it make sense to broaden your horizons into another state (or states)? Perhaps your business has proven itself in your current market and you find you will need to expand to grow. Maybe extending your products or services to another state (or multiple states) is the answer to building upon your success. Before acting, it's critical to research which state(s) will offer you the most opportunities. It's also essential to consider whether establishing a new entity or foreign qualifying your existing entity in the new state will benefit you the most. 3. Is the time right for expanding your portfolio of products and services? If adding a new line of business has been on your wish list, but the regulatory climate or other factors were keeping you from taking the plunge, reassess your situation. If the barriers to entry have gone away, now may be the time to pursue your vision. Other Articles From AllBusiness.com: 4. Do you need more hands on deck to get the job done? Honestly assess your staffing situation. If you and any existing employees or contractors are overworked and overwhelmed, maybe you should consider adding more staff or hiring additional vendors to keep up. If insufficient human resources are causing you to miss out on opportunities, preventing you from providing exceptional customer service and support, or otherwise detracting from your company's success, you will want to address the issue sooner rather than later. Likewise, evaluate the team you have in place and identify where professional development is needed to bring lackluster performers up to speed. If this will be your first time hiring employees, make sure you understand the laws regarding job applications, interviews, drug testing, etc. There are federal and state laws that you will need to abide by during the hiring process and beyond. 5. Are you on top of all your business compliance responsibilities? Running a business comes with ongoing legal obligations. The specific responsibilities and when they must be taken care of will vary according to where a company is located and its business structure. Many states require LLCs and corporations to submit annual reports, and corporations (even some LLCs) must hold annual meetings. If any changes have occurred concerning the company name, business address, board of directors membership, management format, type of stock issued, or other significant modifications, a business must report them to the state. Also, many licenses and permits (such as local business licenses, sales tax permits, health permits, professional licenses, etc.) must be renewed. And, of course, it's critical to file and pay taxes on time. Midyear is an ideal time to verify that you're caught up on anything that was due earlier in the year and prepared for anything that you must do in the near future to stay compliant and in good standing. Where to turn for advice As you work through this checklist, consider asking an attorney and accountant for guidance to help ensure you're making the best decisions for your company and doing what you must to keep your company legally intact. The more expert insight you have, the better you'll be positioned to move your business forward. RELATED: Why Every Small Business Needs an Attorney This article was originally published on AllBusiness.com. Read all of Nellie Akalp's articles.

How Content Marketing Can Help Your Small Business: Nine Tips From New York-Based Entrepreneurs - Forbes Posted: 19 Jun 2019 05:15 AM PDT Content marketing is making a real impact on small businesses looking to reach customers at an affordable price. Creating content that resonates with your customers can help generate interest in your brand while boosting your expertise in your industry at the same time. When content marketing is done right, it can really help take a business to the next level. Even in a highly competitive market such as New York, the right content marketing efforts can help you stand out from your rivals and become more visible to your target audience. To help you take advantage of content marketing the smartest way possible, we asked members of Forbes New York Business Council to weigh in with their top content marketing tips for small businesses in New York. Here's what they had to say: Forbes New York Business Council members share their best content marketing strategies to help you grow your small business to new heights. Photos courtesy of the individual members. 1. Give Them What They Want As a business owner, it's really easy to want to push your own agenda as to what you show the customer, but if they love someone that you may not necessarily love, give them more of that! It's not about you, it's about what customers want. Give them what they want and they'll be back for more. Stick to what works. - Hoda Mahmoodzadegan, Molly's Milk Truck + F'in Delicious Beverages 2. Be Original One of the worst things I see when I look to patronize or connect with another business is if their social media is full of stock photos or is obviously being run by a third party. To me it shows that they don't take pride in what they actually do in their own small business. Show what you do and what a great job you do at it. Seeing someone else's work doesn't make me want to go to you. - Edward Alvarez, Edward A Alvarez, DDS, PC/NYCLaserDentist 3. Don't Be Afraid To Share What You Know I used to think that everything I learned in 15 years designing stores and interiors should not be shared. After all, clients hire me for that knowledge, so why give it away? In the past year I started writing for Forbes or for my blog, giving out all my "secrets", and I got a lot of exposure from it. Clients now come because of these writings. - Sergio Mannino, Sergio Mannino Studio, we design interiors and we create brands 4. Leverage The Power Of Audio I admit I'm biased, but I think podcasting is one of the greatest ways to get your message out, no matter how big your business. All of your production and distribution needs are right there on your phone. It's infinitely less costly than video, and it's a medium that is perfectly catered to niche topics and audiences. - Francesco Baschieri, Voxnest 5. Identify Your Target Audience And Their Needs Identify exactly who you're speaking to and what keeps them up at night. Then think about how something you are knowledgeable about can give them a leg up. And don't be afraid to give away the secret sauce. Some of the most successful business consultancies in the world give their entire process away in book form (StoryBrand, EOS, E-Myth Worldwide, etc.). - Tom Conlon, North Street 6. Create Meaningful, Entertaining Content Keep your audience engaged, curious and wanting to learn more. Write interesting articles, create entertaining video and share your knowledge as freely as possible. Content allows potential clients to get to know you as a person and your company's brand. - Jill Strickman, GENUINE: The Real People Company 7. Focus On Providing Value Digital content is often the first impression consumed by your consumer. Offer value, clearly represent your brand and develop a strategy built for your consumer for every platform. Here are a few questions to help develop a content strategy: 1) Does it offer value to the consumer? 2) Does it communicate what, why and how? 3) Is it confusing or clear? 4) Is it consistent with the brand message? - Rob Taormina, TalkIQ Media 8. Highlight Unique Company Endeavors Highlight unique and authentic company endeavors. Two unique and authentic endeavors we've highlighted include a social campaign for women's month, which highlights both our team members and female clients through various platforms, and an upcoming podcast entitled "The Brick Wall," which stems from a team phrase used to power through even the biggest challenges in the office space. - Warren H. Cohn, HeraldPR 9. Create Solutions For Your Ideal Customers As a small business, you need to differentiate yourself from competitors. But, when creating content, be careful not to talk about yourself. Once you have identified who your ideal customers are and where they are consuming content, you should create content that is focused on them, not you. Create solutions for them—provide a "what's in it for me" and your content marketing will soar. - Andy Seibert, Imprint

How small businesses classify employees matters in a big way - USA TODAY Posted: 18 Jun 2019 12:37 PM PDT Rhonda Abrams, Special to USA TODAY Published 3:37 p.m. ET June 18, 2019 | Updated 4:18 p.m. ET June 18, 2019 CLOSE When companies regard so many full-fledged workers as independent contractors, without employment and pay protection, it takes a toll on our economy and society.  (Photo: YinYang / Getty Images) Are Uber drivers small-business owners? Or are they exploited employees? That question matters to your small business because there's a war going on over the question of "employee status." Whether you're a gig worker, service provider, consultant or one of the hundreds of other kinds of self-employed entrepreneurs – or you hire those kinds of workers – you're a soldier in this war.     Though technology has made it complicated, choosing how to classify a worker is a long-standing question for businesses. Companies generally prefer treating workers as independent contractors. As such, they don't pay payroll taxes or overtime or give these workers other benefits. The companies have flexibility in when and how they use workers. Independent contractors aren't allowed to unionize. As a result, many companies, not just tech companies, intentionally choose to classify – or misclassify – workers as independent contractors. CLOSE According to OnePoll, worrying about work could take an even bigger toll on the business and the owner. The study was conducted on behalf of Alarm.com. Buzz60 Now, new developments make things even more complicated in these areas:   ► Services using platforms to provide services. Think Uber, Lyft, Doordash, Grubhub and Instacart, where the workers are the ones providing the service sold by the company and, though workers might set their own hours, the company sets prices and terms.    ► Platforms connecting freelancers with customers. Businesses like Upwork, Rover.com and TaskRabbit are intermediaries enabling individual contractors or small businesses to find customers. The workers negotiate their own terms, pay, time and much more.    ► Permanent independent contractors. Whether for janitors, bus drivers, food service workers or even software engineers, the real hiring company shifts the burden of meeting employer obligations off to a third party, often with minimal oversight. In Silicon Valley, where I live, this is a common practice by the biggest tech companies.  The question of how to classify workers is being fought on both the federal and state level:   U.S. — In April and May, the Department of Labor and the National Labor Relations Board issued rulings and advisories indicating that gig workers and independent contractors would be treated essentially as entrepreneurs, running their own businesses, and not subject to employment protections, such as minimum wage and overtime pay, nor can they form unions.       California — Often a trend-setter in legislation, California's State Assembly just passed AB5, a bill requiring independent contractors to be treated as employees, with wage, hour and benefit protections. This comes on the heels of a California Supreme Court decision last year (in Dynamex v. Superior Court) holding that to be considered an independent contractor, the work done must be outside the company's normal course of business, the company doesn't control the worker, and the worker has an established independent trade. From the time I started in business more than two decades ago, this question of how to classify workers has stymied both larger and small businesses. That's because having just these two classifications – employee or independent contractor – leaves out too many people. One reason many people start their own businesses is that they want to control their own time and have flexibility of when and how much they work. And businesses want and need more flexibility in how and when they use workers. But no worker should earn less than minimum wage. All workers should be entitled to at least the following: ► Minimum-wage provisions ► Overtime protection ► Employer payroll taxes for Social Security ► Workers' compensation Also, employees whose work provides the central service being sold or who work exclusively for one company on a long-term basis should be entitled to benefits, including health care. Many Lyft and Uber drivers I used to talk to would say they started driving because it met their need for more control, especially over their time. But, increasingly, they tell me that they have little or no meaningful control – the companies set the terms and prices, control what kind of cars they must have and they have to work certain times to make even minimum wage.  Treating so many workers as independent contractors has real consequences for the economy and our society. Many of these hard workers, often working more than full-time, end up needing government benefits such as food stamps. That costs you and me – and our small businesses – money. As importantly, I suspect part of America's growing income inequality comes from companies shifting the status of workers. It's time for a new designation that takes into account the realities of both workers and companies and the complexities of these changing relationships.  Rhonda Abrams is the author of "Successful Business Plan: Secrets & Strategies," the best-selling business plan guide of all time, just released in its seventh edition. Connect with Rhonda on Facebook; Instagram and Twitter @RhondaAbrams. Register for Rhonda's free business tips newsletter at www.PlanningShop.com  The views and opinions expressed in this column are the author's and do not necessarily reflect those of USA TODAY. Read or Share this story: https://www.usatoday.com/story/money/usaandmain/2019/06/18/small-business-how-you-classify-your-employees-matters-big-way/1487045001/

Palette Collective redefines work space for small business owners - AZ Big Media Posted: 18 Jun 2019 02:26 PM PDT Brokers all across the valley schedule tours for the average prospect but Director of Retail Leasing Mary Nollenberger, with SVN Desert Commercial Advisors, is working with Palette Collective Studios to bring in a variety of different tenants to the 10,000 square foot building in Tempe, AZ.  Just recently, Nollenberger hosted a broker event at the large space in the retail shopping center at 7720 S. Priest Dr. The owners, Seth Wells and Brett Kalina originally met through mutual colleagues and worked together on several residential real estate projects before introducing this new commercial concept, Palette Collective.  Mary Nollenberger To date, they have 4 locations in the valley which has brought a unique concept in redefining the workplace for small business owners.  "We want to accommodate different industries as it applies to our tenants," Wells stated.  The owners want to let the business community know that their locations are more than just real estate.  Wells went onto say, "We are trying to reshape and redefine what CRE is for people by offering that small or more tangible, more manageable opportunity for a small business owner.  We want to be known as people that can help them develop and grow their business too."   Palette Collective has 46 suites that can be customized for their tenant.  The Tempe location is about 50% occupied and hope to add to their tenant list over the next few months. SVN Advisor, Nollenberger will be helping in the process for her clients that do not need a huge retail or office space, but rather a working space for their business.  The partnership will open more opportunities for small business users and also bring awareness to those who just want to work freely on any given day.  Co-owner Kalina stated, "We are creating universal designs for everyone. We are a little bit different than most, because our concept is about bringing in tenants of all types of businesses."  "This event allowed the community brokers to see the value of connection, collaboration, and coffee," said Nollenberger.  "Palette Collective offers this as top solution for small businesses."  Each location has a coffee shop in the lobby with a selection of open seating right in the front.  Anyone can walk in, order some coffee or snacks, set up their work station at the tables or sit comfortably on the couch and work independently.  As seen on Instagram, "I love @palettecollective brand and what they are all about!! Love working there," said by IG user @forge_studio_az.  A testimonial that is highly recognized from one of their tenants.  The Palette Collective has so much in store for the valley.  The Queen Creek location will be opening soon and the owners hopes to open more locations all across the valley.  The co-working space is also the new "Marketplace" for all business owners who just want a place to work.  Not only is it open to the public, people can rent it out for meetings, conference room training, and/or a place to host business events and more.  Additionally, the locations offer workshops and training to their tenants on how to market and grow their business as well as working with a list of business experts to come in and work with their tenants to help them succeed.  In short, entrepreneurs from many industries have the opportunity to pursue their dreams by working in their own private studio to build and create a space that reflects their brand and style.  SVN Desert Commercial Advisors, Nollenberger will help small business owners find their perfect "Place to Create."

California Small Business Day™ 2019 - Yahoo Finance Posted: 19 Jun 2019 06:00 AM PDT SACRAMENTO, Calif.--(BUSINESS WIRE)-- 83 California Legislators Honor Small Business Owners at Annual California Small Business Day™ Today, 14 California governmental agencies, 21 small business organizations and 83 California State Legislators come together to recognize small business owners from across the state for their hard work and success. This annual event honors a few of the millions of small businesses that serve as the economic engine of California. California Small Business Day™ is a special day for small business owners to connect with government agencies, elected officials and businesses that can help them succeed and grow. In addition to a morning exhibition where small businesses learn about new and existing state and private sector programs, California Small Business Day™ 2019 includes speeches from California State Senate President pro Tempore Toni Atkins, Small Business Assembly Legislator of the Year Jay Obernolte, Director of the Office of Small Business Advocate in the Governor's Office of Business and Economic Development Isabel Guzman, and a keynote address from State Treasurer Fiona Ma. "Small business has always been integral to the success of California's economy. Today is about honoring that contribution," said Betty Jo Toccoli, President of the California Small Business Association. "We are excited to collaborate with California's leading policy makers to ensure sustained growth for the small business community." The day's highlight is an award luncheon, where legislators from the California State Legislature present a "Small Business of the Year" award to a small business owner from their district. California Small Business Day™ concludes with a networking reception, where small business owners connect with one another. During the reception, small business owners also have the opportunity to go on a guided tour of the State Capitol. California Small Business Day™ was created by House Resolution 57 in 2000. Volunteer small business organizations throughout the state come together to host the event in Sacramento each year. View source version on businesswire.com: https://www.businesswire.com/news/home/20190619005080/en/

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