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The Definition of "Small Business" has Changed - Good or Bad?

Wed, 22 Feb 2012 09:48:50 +0000

For the first time in 25 years, the Small Business Administration (SBA) has changed the definition of what is a small business. The rationale? So more businesses can be have access to federal assistance and a chance to benefit from contracting. There are 37 new revenue-based size definitions in place beginning in March in professional, scientific, and technical sectors.

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Doing Business on the go? Use These Apps on Your iPhone!

Tue, 21 Feb 2012 14:29:41 +0000

Business doesn't happen in just one place these days. There are many apps available for the iPhone that can help your small business finance and accounting efforts. I put together a list of the eight iPhone apps I think will help a small business most. Most of these apps can also be used on an iPad.

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What's Trending in Small Business Finance in 2012?

Fri, 17 Feb 2012 19:55:17 +0000

As 2012 gets underway, some trends in business finance have become apparent. Mobile payments are going to become big and businesses need to get on board with some of the apps that are available. Another technology trend is movement toward cloud computing with programs like Google spreadsheets so no matter where you are, you can access your data. Businesses won't necessary remain in one place in the future.

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Congressional Fight Over Payroll Tax Extension Looms.....Again

Tue, 14 Feb 2012 08:00:29 +0000

It's February and that means the extension to the payroll tax extension passed in December 2011 is about to expire. Once again, it's all over the news that the Democrats and Republicans are gearing up for a knock down drag out fight over the details of this bill. To make it all the more difficult to get the payroll tax cut passed, the President is about to deliver his 2013 budget to Congress which is sure to cause a raising on the eyebrows, particularly on the Republican side of the aisle.

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What Actually Creates Jobs by Small Businesses?

Sun, 12 Feb 2012 14:15:07 +0000

Small businesses need less regulation. That is possibly a statement that most business people agree on. Small business needs lower taxes. Ditto. We may also agree on that statement. However, do lower taxes and less regulation create jobs? That is debatable. It's like a drumbeat in our national debate -- small businesses create jobs. We never, however, seem to answer the question, "How?" Or what is it the actually causes small businesses to create jobs? Is it less regulation or lower taxes or something else altogether?

It's simple. Nothing complex about it. It's demand. Demand for whatever the small business sells. If the public wants the product the small business sells, then the small business will create jobs in order to sell its product. Boom. There's the answer.

If demand creates jobs, then what effect does taxation and regulation have on job creation? Let's look at taxation - specifically, the Section 179 depreciation deduction that has dropped in 2012 and will drop further in 2013. The fact that this deduction will be less will raise tax liability, but will it also keep business from buying unnecessary fixed assets? What about regulation? Regulation is certainly burdensome but may require more workers to shuffle the paperwork. The small business may not be able to afford to hire the additional workers if the demand for the product is not there.

In the current economic and political discourse, let's talk about why small business creates jobs and perhaps people will understand and think about the right candidate to vote for.

We could get even deeper into this. What drives demand besides innovative and needed products and services? Population growth. Low population growth means low demand. But, that's for another blog post.

Yes, American Manufacturing Could Come Back

Wed, 08 Feb 2012 14:00:24 +0000

Recently, CNN reported several stories of business people selling their product or invention in the U.S. and trying, in vain, to get their products manufactured in the U.S. The point of the CNN story was that it would be terribly hard to revive American manufacturing. I think we know that. Manufacturing has been gone from the U.S. for awhile now. Of course, starting up a viable manufacturing sector of the U.S. economy will take some doing.

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2012 Profit-Making Business Opportunities

Tue, 07 Feb 2012 11:00:39 +0000

Sometimes, it takes a recession to make us look around our communities or neighborhoods and see what businesses they need. For example, my community has no dry cleaners. Can you imagine a university town with no dry cleaners? A perfect business opportunity if someone would jump in and grab it and I sure wish they would. I'm tired of driving 30 miles to get my clothes dry cleaned! Other communities have other needs - and my community needs more than just a dry cleaners.

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Hopeful Venture Capital Report for 2011

Tue, 31 Jan 2012 11:00:54 +0000

Reading over the PricewaterhouseCoopers National Venture Capital Association Money Tree (whew, that's a mouthful!) report, I am increasing hopeful about the future of the venture capital industry in the U.S. and, thus, the small business startup potential in our country. In fact, it was the most hopeful report I have read in awhile. In my article, Venture Capital Investment 2011 - What Industries do Venture Capitalists Invest In, I find that 2011 levels of venture capital funding have almost come back to the level of 2007 levels of funding, which is great news. Venture capital funding came close to drying up during the Great Recession.

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Increase Regulation on Large Banks if the U.S. Wants Economic Recovery

Mon, 30 Jan 2012 14:35:14 +0000

A quarterly survey of bank lending officers, reported today, indicates that they are no more likely to make small business loans at present than they have been since the Great Recession. Banks are doing well, with record bonuses reported at the end of 2010. Banks are not suffering under regulations, in the opinion of this writer. Instead, small businesses are suffering because banks are not subject to more regulation. Banks are still allowed to invest their money in risky securities, rather than invest in loans to individuals and small businesses, which is their mandate.

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How is Dividend Income Different From Capital Gains Income?

Thu, 26 Jan 2012 22:24:17 +0000

If you were an investor, would you rather earn dividend income or capital gains income from your investments? Actually, that's a pretty complex question and has a variety of answers, most of them based on your own particular financial situation and lifestyle. If your motivation, however, is to lower your taxes, you might choose capital gains income, specifically, long-term capital gains income. Long-term capital gains income has a substantially lower tax rate than does short-term capital gains income or dividend income.

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