The “American Recovery Capital” loan was created in response to small business’ need for its own bail-out plan. As a part of last year's billion-dollar recovery act, this program seemed like a good plan in helping small business recover, but turned out to be more trouble than it was worth for many.

This article at CNNmoney.com outlines the loan program, and how, for the nearly 5,000 who participated, it may have been worth the struggle. But the bottom line? Overall, it was a flop that had U.S. Sen. Olympia Snow (a primary supporter of the bill) calling for its termination five months later.

Posted by Amber Garner on January 28, 2010 02:37 PM

Today President Obama outlined a series of initiatives designed to spur job growth—particularly by small business owners. "Where was this proposal more than a year ago when the economy nose-dived?" you're probably thinking. And you're right, but so is the saying better late than never.

As outlined in this New York Times article, the proposals include a tax credit and a temporary elimination of capital gains for small businesses that create new jobs. Obama also proposes leftover money from the 2008 bailout package be used to help unfreeze credit lines for America's job creators.

Of course, Obama's speech today was just step one in a long process of making these efforts a reality for small business. Stay tuned to NFIB.com for updates on these small business stimulus efforts as they happen.

Posted by Lena Anthony on December 8, 2009 03:12 PM

“I’ll trade you!” It’s a phrase we all know well. It’s certainly a staple in every elementary lunchroom across the country. But who knew that small business owners could use this concept to trade one set of goods for another in order to grow their business?

The brains behind the Barter Business Unlimited's Annual Business and Holiday Barter Show, that’s who. This year’s annual event attracted business owners from all over who traded warehouse space for fine jewelry, advertising for clocks, and other products and services.

This CNNmoney.com article explains the process of bartering for business in more detail.

Posted by Amber Garner on November 13, 2009 02:08 PM

With the economy still not improving as much as we'd all like, you wouldn't thinks any businesses would be shedding customers--no matter how much of a headache they can be. But these days, small business owners are cutting ties with customers who make late payments, expect special treatment or ask for discounts, says this Wall Street Journal article.

I know what you're asking yourself: What's the up side of losing business? According to Kishau Rogers, owner of Websmith Group LLC in Richmond, Va., dropping high maintenance or late-paying clients boosted her business in the end. According to the article, "By eliminating 5% of her clientele this year, [Rogers] is saving 20% more of her time while the Web-site development firm's 2009 revenue is on track to rise 10%."

Need more proof that a pesky client can hurt your business? Read on for more stories like Roger's.

Posted by Megan Pacella on November 10, 2009 03:22 PM

American Express OPEN just released its Small Business Holiday Monitor, an annual survey of small business owners that details their spending plans for the holidays. According to the survey, roughly the same percentage of small business owners (47 percent) plan to spend the same amount of money ($455) on customer gifts this year, compared to last year. That's the good news.

The bad news is that many of them plan to fund these customer gifts by cutting back on employee bonuses and gifts. The survey found that fewer small business owners (35 percent) are giving employee gifts this year (vs. 46 percent in 2008), fewer to give year-end bonuses (31 percent vs. 44 percent in 2008) and fewer will give raises (16 percent vs. 30 percent in 2008).

If you're sacrificing employee bonuses and gifts for showing appreciation to your customers, just remember to thank your employees for all of their hard work in some other way, be it an extra day off over the holidays or some other gesture of gratitude.

Posted by Lena Anthony on November 9, 2009 02:22 PM

Whoever said that people didn’t care about people was dead wrong. They obviously haven’t met this group of generous small business owners. In this article on CNNmoney.com, meet five businesses that are helping the jobless get back on their feet and prepare for interviews by giving away free services. Among these services include free haircuts, dry cleaning and shoes.

It hasn’t been bad for business either, especially with all of the press coverage these companies are getting for their extraordinary acts.

Posted by Amber Garner on November 6, 2009 01:49 PM

Needing an extra dose of inspiration? If you feel like the recession will never end for your business, and the policymakers in Washington D.C. have forgotten all about you in their plans for economic recovery, check out this Fortune Small Business article posted to CNNMoney.com. The year ahead may not be the best for small business, but one thing is certain: Many small business owners out there are making the best out of the situation. From discovering how to run their businesses more frugally to picking up clients and customers left behind by corporate America, entrepreneurs are finding creative ways to survive—and even thrive—in these difficult times, as this article illustrates.

Posted by Emily McMackin on October 8, 2009 11:14 PM

I know what you're thinking: Not another post about the economy. But I couldn't help myself when I saw this Yahoo! news report that small business owners are feeling optimistic about economic growth in the next three to six months. On top of that, these small business owners are making plans for aggressive growth in the next few months. Still, there's room for entrepreneurial optimism to grow. Here's what the Tennessean's Jeff Cornwall suggests will ease the burden on America's small businesses:

Cut tax rates. Entrepreneurs need to see that their risk-taking can lead to the opportunity for income and wealth down the road.

Decrease regulation. The Small Business Administration estimates that when compared with large businesses, small operations must spend four and a half times more per employee to comply with environmental regulations and 67 percent more to comply with tax regulations. It's time to cut some of the red tape.

Stop trying to steer the economy. Markets have proven to be pretty good at picking economic winners. Rather than trying to use tax policy and other forms of government incentives to support one industry over another, now is the time to let markets work.

Posted by Megan Pacella on September 29, 2009 04:48 PM

Lately it seems like every time I turn around the weather channel is forecasting another rain shower or thunderstorm. And apparently, that's not just happening in my neck of the woods. According to this Wall Street Journal article, many states in the Northeast and Central U.S. have set rainfall records for the months of May and June. While that might not be as bad for business as last year's country-wide wildfires, rainfall isn't so hot for business either.

The small business owners in this article have seen their numbers fall thanks to the inclement weather, but luckily, they've figured out a few ways to beat the rainy-day blues. Here are there suggestions:

Offer free delivery. New York City-based Tribeca Treats offers free delivery of their baked goods for customers in downtown NYC Monday through Friday. This way, customers don't have to venture into the rain to satisfy their sweet tooth.

Try selling on the Web. Don't depend on foot traffic to garner your sales. If you offer your products online, customers who hate fighting traffic during storms won't be turned off to your company.

Let customers know you're there. FlatRate Moving in New York advertises to its customers that its moving services are available rain or shine. If your business is generally conducted outdoors, potential clients might think you're closed when it rains.

Offer special discounts. If your sales are dismal during rainy months, offer discounted goods and services to get people in the door. Once they're there, you're sure to see a bump in your bottom line.

Posted by Megan Pacella on August 18, 2009 04:37 PM

Given up on trying to borrow money to get your business through this tough year? Before you throw up your hands, check out this Entrepreneur.com article on U.S. News & World Report's Web site. According to the article, it's not that you can't get a loan; you just need to know the tricks to getting one. Though the SBA has increased its loan guarantees, the number of businesses applying for loans has grown, so you need to stand out from the competition. You can start by doing some legwork—be ready to talk about your business prospects, your cash-flow management and your recession survival plan. If you still get turned down, see if there is a community or regional bank that might be willing to give you a second look. Also, be honest with the loan officer about your challenges, but also talk about your strategies for overcoming them. For more on new SBA loans being offered through the economic stimulus package and your changes for getting one, check out this New York Times article.

Posted by Emily McMackin on August 13, 2009 04:52 PM

For the latest issue of MyBusiness, we talked to an expert about why it's a great time to transfer a business from one generation to another—business valuations are way low right now. But for that same reason it's not a great time to be selling a business. Unfortunately, like many home sellers right now, there are business owners out there looking to unload their biggest assets.

But just because it's a buyer's market doesn't mean you're going to get a bad deal, according to this Wall Street Journal article, which offers three ways to overcome low valuations.

Posted by Lena Anthony on August 10, 2009 04:13 PM

With the economy still struggling, you might think lending to small business is riskier today than it was a few years ago. But that's not exactly the case. According to this Experian report, when it comes to lending, small businesses that were healthy in 2007 pose far less of a risk than the general small business population. These healthy businesses are half as likely to become severely delinquent on their payments.

What's the point? Even though some economists say the sky is falling, most businesses that were healthy before the recession are still healthy today. Credit should be more accessible for healthy small businesses, but that doesn't mean lenders agree. According to this BusinessWeek.com story, the curtail in lending to healthy small businesses could slow economic recovery.

Posted by Megan Pacella on August 4, 2009 12:06 PM

One of the most interesting comments I've heard from business owners talking about the downturn and what it has done to their business is actually a good thing—they say it's made them realize just how much money they were wasting on non-essential business expenses. Unfortunately, for a lot of them those expenses included staff.

In this week's profile on Bizjournals.com, it's clear that Tom Haley, CEO of Redwood City, Calif.-based Agilaire has made the same realization—but he didn't need a downturn to do so.

“We run our business like there is always a downturn,” Haley told the San Francisco Business Times. “I think we’re more efficient and more competitive and don’t get sloppy.”

For Haley, running more efficiently means outsourcing a lot of the administrative tasks to Asia and focusing on the core competencies in house. But running leaner can mean lots of different things. For example, do you really need to hire someone else or could everyone just chip in a little bit more? Do you have to send three people to this year's trade show, or are those resources better spent elsewhere? And really, individually wrapped plastic spoons in the kitchen? Because that's sort of a waste.

Posted by Lena Anthony on July 8, 2009 03:18 PM

Last month, I interviewed a small business owner in Tyler, Texas, who was boosting business by offering his customers a stimulus check. Through that same interview, I learned of a business in Austin, Texas, doing something similar. And now today, I read this Wall Street Journal article that explains how buying local—and rallying consumers around this idea—is the key to beating this recession.

The article cited a survey released in January by the Institute for Local Self-Reliance that found that "community efforts can often at least protect independent companies from the worst of the recession. Independent retailers in cities with buy-local campaigns saw holiday sales drop 3.2% from the previous year, compared with 5.6% in cities without them."

Perhaps one of the biggest buy-local campaigns in the nation is Florida's Backyard Economics program. Spearheaded by NFIB and other business groups, the program encourages Floridians to buy local products by offering discounts at participating Florida merchants.

Whether you're in a location with a formal buy-local program or not, you can still do your part to encourage local spending. For starters, you can set an example by patronizing local businesses yourself. Use the family-run office supplies store down the street instead of placing your order with one of the big boxes. And send customers to local merchants when they're looking for a product you can't provide. It's the little things that add up to make a big difference.

Posted by Lena Anthony on July 6, 2009 01:49 PM

The economy might be starting to level out, but that doesn't mean your employees are completely at ease in the workplace. And if you don't communicate the state of your business to them, they'll immediately start to think the worst--and they'll convince each other to think the worst, too. Feel uncomfortable talking about the company's cash flow? This Business Resources article on NFIB.com has tips to help:

Communicate bad news face-to-face rather than by email.

Lead off the conversation with the unvarnished facts

Interpret the facts; tell them exactly what they mean for the company and for the employees.

Create a positive metaphor. Example: "Times are tough but we've been through tough times before." Or, "We're a team and we'll get through this as a team."

Make it hope-sensible. If you're saying there's reason for hope, provide specifics. Don't just offer platitudes not grounded in reality.

Posted by Megan Pacella on June 16, 2009 06:35 PM

Layoffs are the worst nightmare for most employees; for software developer Stephen Chen, getting laid off turned out to be a blessing in disguise. For months, he had toyed with the idea of starting a shoe company that fashioned sandals from recycled tires after seeing it done during visit to the Philippines. But his business, GreenSoul Shoes, may have never come to fruition if the hedge fund company he worked for hadn't let him go. "The time was right," Chen said. That is a feeling shared by many unemployed workers who, rather than scour the market for another job, are creating their own jobs by starting businesses.

According to this report from ABC News, these new entrepreneurs are inspired to find solutions, not just to their own unemployment, but also to problems that plague the economy that undermined them. That's exactly what motivated Craig Cadarette of Alcoa, Tenn. After getting his pink slip from the ALCOA aluminum plant, he used his severance to start his business, All American Real-Estate Clean-Out & Services Inc., which cleans out foreclosed homes so they can be put back on the market. He hopes to grow the business enough to hire a few of his former coworkers who also got laid off from the plant. Now that's inspiring! Check out the article to read more about the ingenuity and optimism of these unlikely entrepreneurs.

Posted by Emily McMackin on May 28, 2009 03:24 PM

According to this AP report, economists say the end of the recession is in sight. And it's a good thing, too. If you're like me, all of the gloom and doom in the news reports is starting to get old. But even if you're tired of hearing recession-related news, you still have to stay on top of the country's financial climate in order to keep your business afloat. And if you think there's nothing you can do to boost your business in the downturn, this Kiplinger.com article proves you wrong.

Not only can you survive the recession, you can use it to thrive. Scour your monthly expenses to see where you can cut costs, don't cut anything that will affect customer service and look aggressively for new opportunities for your company. The article also suggests emphasizing the value your company can offer over the savings. The key to thriving? Don't change your new habits when the economy turns around.

Posted by Megan Pacella on May 27, 2009 11:43 AM

This story from Friday's Wall Street Journal about small business owners cutting their own paychecks gives me mixed feelings about the economy.

On one hand, it's horrible that it's come to this. The article says in past recessions small business owners would have turned to an equity line or credit card, but with those options drying up, cutting their own paychecks is all they can do to stay afloat. On the other hand, though, it goes to show that this economy is in good hands—those of small business owners who will make huge sacrifices to turn things around.

The article cites a survey from American Express' small business division, which found that 30 percent of owners or managers were currently forgoing paychecks.

Posted by Lena Anthony on April 27, 2009 01:59 PM

Will the $787 billion federal stimulus package really create more opportunities for your business? Small business owners hope so, but many remain skeptical, according to a Fortune Small Business/Zogby poll conducted in March and published on CNN.com. Of the small business owners surveyed, 33 percent said the stimulus package wouldn't impact their business at all, and 31 percent said it would impact their business negatively. While 22 percent weren't sure how the stimulus would affect their business, 14 percent predicted a positive affect.

Though the billion-dollar package doesn't require government agencies to spend a penny with small business, one small business owner, Geoff Chapin, who runs the green remodeling company Next Step Living, is confident that he'll get his piece of government pie. "We plan to hire up to 120 people in the next 18 months," he was quoted as saying. The key, he says, is not only having the capacity to handle many different types of projects, but also capitalizing on your relationship with government agencies and documenting ways that you can save them money and time.

Posted by Emily McMackin on April 23, 2009 03:34 PM

I just read about a small cafe in Tunkhannock, Pa., that has figured out a neat way to save money—for the business and the customer—and save the environment. If customers bring in their own coffee cup, they can save $1 on all coffee drinks (and 50 cents on tea). It makes her specialty coffee drinks a little more affordable these days, it appeals to Mother Earth, and it saves her business time and money—each paper coffee cup costs 40 cents and she no longer has to keep track of ordering disposable cups as frequently.

This idea, which I read about on the WSJ's Independent Street blog, won't work for every business out there, but it's a good example of the myriad creative ways small business owners are able to help customers through this economic downturn without breaking the bank.

Take some time this week to figure out how your business can join the ranks of those small businesses that are trying to ease the pain for customers and encourage spending. If you're lucky, you'll find a way to save your customers—and yourself—a little money.

Posted by Lena Anthony on April 13, 2009 05:07 PM

Wary of relying on a government stimulus to solve all your financial woes and keep you afloat until the economy improves? You can take matters into your own hands. Just ask residents of Lamar, Colo. Tired of waiting for federal stimulus dollars, they launched an economic recovery plan of their own, reports CNN.com.

For every $300 residents spend (on everything but groceries, pharmaceuticals and booze) this month, they'll receive a $30 gift certificate good at any local store. Shoppers can save receipts until they have $300 in purchases, or double up with a spouse to get a $60 gift certificate on a $600 purchase. For buying a new or used car, the city will even provide consumers with a $100 gift card for gas at a local station. The plan is not that different from what some small towns did during the Great Depression, when cities issued scrip (currency good in one community) to keep the economy going, said city administrator Ron Stock, who proposed the idea.

Roger Stagner, city councilman and owner of Stagner Inc., a used car and motorcycle dealership his father started 48 years ago, believes the plan could be the town's salvation. "A lot of the [federal] government programs are aimed at the big businesses," Stagner says. "They're not aimed at the people that are actually spending the money."

NFIB is helping launch a similar plan in Florida to plant the seeds of economic recovery in local communities—the Florida Backyard Card initiative gives businesses across the state the chance to take part in a consumer discount program. The program is designed to encourage consumers to reinvest their dollars back into Florida businesses instead of spending money with out-of-state companies that don't contribute to local jobs and tax revenue. Learn more about how the program works here.

Posted by Emily McMackin on April 9, 2009 10:07 AM

Several months ago, I had seen on "Nightline" a story about a restaurant that started offering "Pay What You Can" specials. The owners had noticed a drop-off in business, and they attributed it to the economy. To keep their tables filled, they started letting customers pay what they could for the day's blue plate special. It was a really neat idea, but after reading this Independent Street post, I wonder if it was a very good one.

Today's WSJ small business blog examines a growing trend among restaurateurs—offering free or reduced meals just to get people in the doors—and the downside of it.

"A few months ago, Potager Natural Cafe in Arlington, Texas, opened its doors as a pay-what-you-want cafe, with an ever-changing menu that features such items as Guinness-glazed organic chicken or a Guinness chocolate cake with Baileys vanilla frosting. Trouble is, it’s not breaking even. Customers are leaving an average of about $7 per person; Potager’s food costs are running about $8 per person."

Yikes.

Desperate times call for desperate measures, but you still need to break even.

I interviewed an NFIB member a couple of months ago for an article on listening to customers. Toward the end of the interview, the conversation naturally turned to the economy and what effect it was having on his business—a restaurant in Boise, Idaho. One of the incentives he was using to draw customers in despite the downturn was offering free lunch every Tuesday—but just to one table. The prospect of winning free lunch was enough to encourage customers to come, and the generous gesture hardly put a dent in his bottom line.

Posted by Lena Anthony on April 6, 2009 01:30 PM

Economic downturns have a way of forcing small business owners to make impossible choices: Your business or your employees? Your bottom line or the company culture you've worked so hard to build? Something has to give, and as family-oriented as many small businesses are, most will opt for layoffs rather than risk the chance that they might have to shut their doors. But are layoffs really the only option? In tough economic times, why not do as the Europeans do? Cut back on your hours or give employees more time off.

An op-ed article in the New York Times explores Europe's solution of turning to shorter workweeks and mandatory time off to control labor costs. In France, it isn't unusual for businesses to operate on a 35-hour workweek, which more are adopting to avoid layoffs and survive the global financial crisis. Germans, too, argue that keeping more workers on the job is the best way to stimulate the economy in a recession, so many are opting for kurzabeit (short week), cutting workers' hours rather than cutting them loose.

Of course, as guest bloggers point out, European workers have a social safety net that employees in the United States don't have—universal health care—so they don't risk losing that due to cutbacks. Also, as one blogger argues, job-sharing has the potential to reduce workers' morale, along with their incomes. And then there's the fact that Europeans are used to taking more vacation time than their U.S. counterparts. Would employees here even know how to handle the free time? What do you think? Is this a viable solution? Check out the article, and weigh in on the debate!

Posted by Emily McMackin on April 2, 2009 02:47 PM

If you're like most people, you rarely pick up a newspaper anymore. You get most of your news online. And why wouldn't you? It's much cheaper than paying for a weekly or daily subscription—and you don't have to spend time flipping through dozens of pages to find what you really need to know. But with more and more newspapers folding every day, have you thought about how their decline will affect your small business? This small business blogger for the online version of the Seattle Post-Intelligencer (which recently went out of print) has. Her concerns include:

•Advertising and marketing. Newspapers used to be the No. 1 medium for advertising products and services. Do you rely on newspaper ads to reach customers? If so, you might need to be branching out into other mediums. Chances are your customers read the paper about as much as you do!

•Staffing. Employers have traditionally listed job openings in newspapers, but with the explosion of online job listing sites (i.e., Craigslist, among others), hiring has moved to the Web. But does this hurt the possible spectrum of candidates for a position? You might be missing out by only finding your candidates online.

•Community association. Anything you can do to support your community through donations, outreach, ect., gives your business a good name—and newspapers are often the channel through which you can find these opportunities and receive positive publicity for them. Without newspapers to publicize your good deeds, will customers know about your reputation? If not, how will you tell them?

Posted by Emily McMackin on March 26, 2009 04:36 PM

Does the economy have you stressed these days? Are you more prone to snapping back at your employees, suppliers or customers? Not sure how to break the news that paychecks are going to be late next week? Turn to the New York Times' Paul Brown for some guidance. Brown compiled tips from experts on how to be an effective leader despite the tough times. He also explains why it's so important.

Even a sinking ship needs a captain. Good or bad, these are your employees and your customers and it's your responsibility to appropriately manage their expectations about the economy and its effect on your business. Your ability to do so will result in good ideas on how to weather the downturn together—and stronger relationships once the storm has passed.

Posted by Lena Anthony on March 18, 2009 02:16 PM

Federal Reserve Chairman Ben Bernanke announced Sunday that he expects the recession to end sometime this year, but that doesn't mean you can ease up on your saving measures in the workplace just yet. You've probably already started encouraging employees to use less paper, plan cheaper business trips and power down office equipment at night, but there are always more ways you can save.

Have you ever thought about perfecting the art of bartering with your suppliers? Do you offer creative incentives for employees who work hard to save your business money? Have you worked to make every process in your office more efficent? Chances are, you've missed a money-saving step along the way. Check out these small business owners' strategies for cutting back--even if the recession ends tomorrow, you'll be glad you formed these frugal habits now.

Posted by Megan Pacella on March 17, 2009 12:28 PM

If you once had a no-layoff policy, chances are you've had to reconsider it recently. But as pervasive and commonplace as layoffs are these days, some small business owners are refusing to give in to the pressures.

If this sounds like you, then you'll want to read this Wall Street Journal article about small business owners who are taking drastic measures to avoid the dreaded l-word. Instead of laying off employees, they're making major cutbacks to stay afloat—such as requiring mandatory days off and imposing 10 percent pay cuts. It still delivers a blow to employees who live paycheck to paycheck, but it's less severe than the alternative.

Posted by Lena Anthony on March 16, 2009 02:30 PM

Many of you suffering through today's economic downturn have been here before. You experienced the slowdown after the terrorist attacks of 9/11—maybe even the two recessions in the '80s and '90s. If so, then you probably have a good sense of what needs to be done to survive—and know you will survive.

But what about if you launched your business a year ago? Then this New York Times article is a must-read. It compiles lessons learned by small business owners who endured downturns in the past—and have lived to tell.

Posted by Lena Anthony on February 16, 2009 03:38 PM

Service seem slower at your favorite restaurant? It may be that your favorite restaurant has jumped on a trend among restaurateurs—eliminating bus boys. This Wall Street Journal article published on smSmallBiz.com explains that restaurants, in an effort to cut corners, are eliminating their busboys, asking servers to be the ones to clear the tables, sweep the floors and scrape the food off for dishwashers. The only downsides? Longer waits for customers and disgruntled servers.

This article makes me wonder if these restaurants made the right decision of eliminating the bus boy. Cutting staff is a hard decision, but instead of cutting from the bottom (or from the top) consider how your decisions will affect your customer experience and employee morale. That may help you see where you can and cannot cut.

Posted by Lena Anthony on February 2, 2009 03:20 PM

Small business owners are the backbone of the nation's economy—and that becomes even more evident during times of recession, says an AP article published this week on MSN.com. The article details the impact that economic hardship in the small business sector has had on the marketplace as a whole, as storefronts go empty, spending freezes and charitable donations and tax revenues dry up, especially in small communities. To cope with the economic fallout, owners are paying employees before themselves, renegotiating leases and publicly pleading for customers on blogs and Web sites.

As interesting as the article is, you might get depressed if you don't follow the story up with this USA Today column. Check out what expert Steve Strauss has to say when a reader asks, "Do you think the next four years will be better for small business than the past four?" (Hint: The answer is sure to bring a smile back to your face!)

Posted by Emily McMackin on January 22, 2009 03:17 PM

Times may be tough, but the gloomy economy can't dampen the hopes of America's small business owners. According to an American Express Open survey released last week and reported by the Reuters Shop Talk blog, business owners are pushing ahead with plans to grow, despite losing a large portion of sales this year to soaring energy costs—among other financial obstacles. Though small business owners are natural optimists—the survey reports that 9 out of 10 say they "see the glass as half-full"—many expressed concerns about the future of their businesses.

Despite their reservations though, more than 70 percent of the survey's respondents said they plan to grow their companies in the next six months, with half saying they are willing to take a financial risk to make that happen. Even if their businesses don't weather the economic storm, few expressed regrets about owning their own businesses. In fact, 75 percent said they would still recommend entrepreneurship to a family or friend.

Posted by Emily McMackin on January 15, 2009 04:30 PM

Does the down economy have you searching frantically to cut back in your workplace? If so, you're not alone. Sure, you could take steps to lower your electricity bill or trim your budget for office supplies--but these days, those simple measures aren't enough to keep your books in the black. If you're looking for smart ways to save money at your small business, take a look at these tips from Entrepreneur.com.

Say no to costly customers. Landing a high-profile job could cost you if you're not careful. If a client is sucking up your resources, it's time to cut ties.
Examine your tech expenditures. Most small businesses get caught up paying for technology they don't actually need, says Joe Knight, author of Financial Intelligence for Entrepreneurs. Take a closer look at your tech budget to make sure you're only spending on what you need.
Don't fire great workers. If you cut your key performers just to save money, you could find yourself in a jam that you can't get out of. Find other ways to free up cash--without cutting the workers who have made your small business successful.

Check out the full article for more great ways to save.

Posted by Megan Pacella on January 13, 2009 03:07 PM

Are you so busy that you eat breakfast, lunch and—and dare we suggest—dinner at your computer? If so, then you're in danger of becoming a "mouse potato," according to a recent study released by office supply retailer Staples. A survey of 300-plus small business managers revealed that, since the economic slowdown, managers have been not only spending more time at their computers, but also eating most of their meals there. Sixty-two percent of the respondents agreed they are becoming "mouse potatoes" from eating and working on their computers at the same time, and 20 percent admitted to "deskfasting"—eating breakfast while using their computers—to maximize their time.

The survey also revealed that small-business owners and managers are not only cutting into their mealtimes to adapt to economic stress, but also reducing their own compensation as well as business travel costs. The good news? Most of the respondents expressed confidence that they would weather the crisis, with 84 percent predicting to be in business next year. Hopefully, this will also mean a return to lunch breaks and dinner at home!

Posted by Emily McMackin on January 9, 2009 02:16 PM

Have you been eating breakfast while hunkered over a keyboard at your desk for so long that you've forgotten what it's like to grab your morning fuel before you leave the house? If so, you're not alone. In the Third Annual Staples Small Business Survey, one in five respondents indicated that they eat breakfast at their desk in an effort to maximize time. In addition, 62 percent admitted that they are transforming into a "mouse potato" (i.e. always on the computer), and two-thirds are consistently eating and working at the same time.

Why the obsession with maximizing time? Staples' Internet poll of more than 300 small business owners indicated that entrepreneurs and their management teams are working harder than ever to minimize the effects of the down economy.

For more information about the survey, click here. Be sure to check out the December/January issue of MyBusiness for tips on riding out the downturn.

Posted by Megan Pacella on January 6, 2009 03:59 PM

With the way the economy is lately, nothing is certain. Even if you haven't been directly hit by the economic fallout yet, you can't take anything for granted. But instead of fretting over what will happen in 2009, devote your attention to fundamentals that will keep your business open through good times and bad, says business coach and columnist Becky McCray in a U.S. News & World Report online article. Here are three:

•Bookkeeping. Crunching numbers may not be your favorite task, but keeping an eye out for warning signs in your budget could help you head off a financial crisis.

•Learning. With the wealth of information online and inexpensive resources for small businesses, there is no excuse to be ignorant about any issue affecting your company.

•Connecting. Sure, you can't do much about the economy itself, but every day you come into contact with potential customers, employees, partners and people eager to refer your business to others. Take advantage of it!

For a great resource to brush up on these basics, check out NFIB.com's small business toolbox at www.NFIB.com/toolsandtips.

Posted by Emily McMackin on December 18, 2008 10:51 AM

One of my favorite (and most memorable) articles that has been featured in MyBusiness since I've been working for the magazine is a piece by Harvey King on the FEARS virus. Harvey wrote it for us around the same time the SARS virus was a threat. Even though the piece is more than five years old and the word "SARS" hasn't been uttered in at least three of those years, I think the article is definitely worth revisiting. And I think Tim Berry, a blogger over at Entrepreneur.com, would agree.

Last week he posted about the economy and small business—and how bad it really is. And no, it's not as bad as you probably think. He says, "When things are up, they seem more up than what they really are; and when things are down, they seem worse. Reality is somewhere in between."

In other words, don't freak out. That'll only make things worse. Instead, use that energy to recession-proof your business.

Posted by Lena Anthony on November 19, 2008 04:01 PM

If you're like me, hearing daily reports of the falling stock market, the sub-prime mortgage lending crisis, economic bailouts and failing banks is starting to get a little old--okay, really old. Ready to look at the bright side? According to Thomas Nelson President and CEO Michael Hyatt's latest blog post, a recession isn't all that bad.

Here's why: A recession thins out the competition, makes entrepreneurs more creative and makes you less wasteful, among other things. Read on for more reasons why an economic slump isn't the end of the world for small business owners.

Posted by Megan Pacella on November 11, 2008 11:19 AM

This morning, the Small Business Administration's Office of Advocacy released its "third quarter trends" analysis. While these trends have been reported previously, seeing them all together underscores the challenging times small businesses in the U.S. are moving through. Following are the major trends, according to the report. (A PDF of the full report can be downloaded at the SBA Office of the Advocacy website.)

The U.S. economy experienced weaknesses in the third quarter, as real gross domestic product fell 0.3 percent. Consumers, who helped lift GDP in the second quarter with their economic stimulus checks, reduced their spending by an annualized 3.1 percent in the third quarter, and real gross private domestic investment continued to fall, with an annualized 1.9 percent decline. Real exports remained strong, growing an annualized 5.9 percent; real imports declined 1.9 percent annually, resulting in an improved trade deficit. Meanwhile, manufacturing output declined, with the Institute for Supply Management’s manufacturers’ purchasing index down from 50.2 in June to 43.5 in September and the Federal Reserve’s industrial production index down an annualized 6.0 percent.

Small business owners and consumers are pessimistic about the economy, with the University of Michigan’s consumer sentiment survey and the National Federation of Independent Business’s optimism index lower than desired. According to the NFIB survey, the next three months are not a good time to expand operations, to hire new workers, or to invest in new capital projects.

The unemployment rate in August and September rose to 6.1 percent, its highest point since September 2003, and the U.S. economy has lost jobs each month in 2008, with 760,000 fewer nonfarm payroll jobs since December 2007. Every industry has seen employment losses, with the exception of four – education and health services, government, natural resources and mining, and other services. Some of the hardest hit industries were construction, manufacturing, retail trade, financial activities, and professional and business services. In the third quarter, unincorporated self-employment fell from 10.5 to 10.1 million; incorporated self-employment remained around 5.8 million.

The Federal Reserve has expressed concern about weaknesses in the economy and in the credit markets. It has worked closely with the U.S. Treasury and Congress to shore up the health of banking and other financial institutions and to stimulate the economy. (The Emergency Economic Stabilization Act was enacted on October 3, and the Federal Reserve cut the federal funds target rate by another 50 basis points on October 29. The prime rate is now 4.25 percentage points lower than in September 2007.) Small business lending demand remains weak, according to the Federal Reserve’s Senior Loan Officers’ Survey, and venture investment has also fallen in the third quarter.

Inflation remains an issue, although growth in producer prices has tapered off. Consumer prices rose an annualized 6.7 percent in the third quarter; when energy and food prices were excluded, the consumer price index grew 3.2 percent annually. The producer price index, which increased nearly 14 percent between September 2007 and September 2008, was up an annualized 2.5 percent in the third quarter. Wages and salaries and the cost of providing benefits rose 2.2 percent and 2.3 percent, respectively, on an annualized basis. The price of oil has fallen dramatically since peaking at over $145 per barrel in July. The average cost of West Texas crude was $103.90 in September. (It fell further to around $66 a barrel by the end of October.) Nonfarm labor productivity grew an annualized 1.1 percent in the third quarter.

Posted by Rex Hammock on November 7, 2008 07:38 AM

Scratching your head trying to figure out which way the economy is headed? This week's record-low gas prices might have you seeing clear skies ahead. On the other hand, looking at how trading closed on Wall Street today and you might think there's no end in sight to this slowdown.

Predicting where we go from here should be neither here nor there for small business owners. What you should be concentrating on, says this New York Times article, is taking proactive steps to protect your business—no matter what happens with the economy.

Some of the article's tips might seem a little been-there-done-that (study your competition, know your market, work extra hard), but it doesn't hurt to hear them again when you're struggling to survive.

Posted by Lena Anthony on November 5, 2008 03:53 PM

While small business owners recognize the importance of using resources diligently all the time, cutting costs has become even more critical during this economic downturn. There are various changes you can make in your daily work routine to be more cost-efficient, but Small Biz Technology offers some ideas on how you can use technology (some of which you might already have) to help save money:

• Use video-conferencing software instead of flying to meetings


• Scan and send large documents instead of using a courier service


• Use laptops instead of desktops and separate monitors to decrease energy costs


• If your business is outgrowing its current location but you don't want to take on the costs of moving right now, encourage employees to work from home if possible. Added bonus: Employees save on fuel costs, too.

Posted by Megan Goodchild on October 27, 2008 02:22 PM

We all hear the gloom-and-doom news on a daily basis about the economic downturn, but here's some good news to take to the bank: A majority of Americans still believe in small business. In fact, most Americans believe small business owners are more likely to rescue our economy than any government, nonprofit or corporate institution.

In a recent poll sponsored by the Kauffman Foundation, 70 percent of registered voters surveyed said that the health of the economy rests on the success of entrepreneurs; and more than 60 percent said they had more faith in small business owners to guide the U.S. economy than congressional leaders or Fortune 500 CEOs. Of course, the only downside to the survey was that more Americans expressed reluctance to start a business right now. Though more than half of the survey's respondents reported seeing opportunities for starting a business, only a quarter said they would actually consider it in the next five years.

What role do small businesses owners really play in the economy and how can they save us from the current economic crisis? Check out this commentary by Kauffman Foundation president Carl J. Schramm, who outlines the answers to these questions in an in-depth analysis on CNN.com.

Posted by Emily McMackin on October 23, 2008 11:59 AM

In wake of the financial crisis, access to credit and capital has tightened, leaving many small business owners wondering how they will find the resources they need to keep their doors open. In a response to the tightening of credit markets, the SBA announced yesterday that it encourages its participating lenders to offer small businesses borrowers the flexibility they need to keep cash on hand.

"The SBA is here to help small businesses during these difficult economic times. We are encouraging our lending partners to follow suit by extending three-month payment deferments on their SBA guaranteed loans to qualified borrowers who need relief," said SBA Acting Administrator Sandy K. Baruah, according to this MarketWatch.com article. "We recognize that small business owners are faced with challenging decisions right now. By providing three-month deferments to qualifying borrowers who are struggling, our lending partners can help small business owners free up the capital they need to maintain their businesses."

Read on for more information about SBA's call for financial relief for small business, or click here for more information about SBA's programs for small business.

Posted by Megan Pacella on October 21, 2008 12:44 PM

Last night I heard on the news that the average price of a gallon of gas is under $3. Sure enough, when I drove by the gas station on my way to work this morning, the prices had dropped. Which makes sense: It costs less, so businesses should charge less. But that's not the case with all commodities, says this Wall Street Journal article.

Despite the fact that the price of commodities like corn, natural gas and chemicals have fallen, the small companies that purchase them still haven't experienced the price drop.

If this sounds like your business, check out the article for tips on how you can lower costs while you wait for the price you pay to drop.

Posted by Lena Anthony on October 20, 2008 03:42 PM

Small business owners rarely steal the spotlight. Most of the time, they're the kind of people who stay behind the scenes, toiling away in a darkened warehouse or office after hours, on weekends and through holidays to keep their companies going while everyone else is enjoying time off. They are the first to arrive, the last to leave and the least likely to expect attention—much less national attention—for their sacrifices. But during last night's final presidential debate between John McCain and Barack Obama, one aspiring entrepreneur, Joe Wurzelbacher, a Toledo, Ohio, man planning on buying the small plumbing business he currently works for, thrust the concerns of small business owners into the forefront of the race.

The candidates referred to Wurzelbacher, who recently met Obama at a campaign stop and questioned him about how his tax plan would affect his future business, a total of 23 times as they squared off over the economy, health-care and other domestic issues. So who is "Joe the plumber," and why does his story matter? Check out this analysis in U.S. News & World Report. You can also find out more about where the candidates stand on the issues that matter to your business in our latest issue of MyBusiness.

Posted by Emily McMackin on October 16, 2008 04:09 PM

NFIB today released a special version of its decades-old monthly survey of Small Business Economic Trends. Before Monday, Sept. 15, there had been "dramatic improvements in the percent of small business owners expecting the economy to improve over the next six months and solid plans to invest in new inventories accounted for that early surge," said NFIB Chief Economist William Dunkelberg.

On Sept. 15, however, the investment banking firm Lehman Brothers filed for bankruptcy, dramatically illustrating the degree to which the nation's credit system was on the brink of collapse.
After Sept. 15, small business optimism was hammered by the events in Washington and New York and the steady growing media coverage of the panic. The mood of small business owners turned markedly downward at that point and subsequently plans to create jobs and invest in inventories or capital expansion fell (reducing loan demand).

Despite that set back, the Index of Small Business Optimism rose 1.8 points to 92.9. However, 92.9 is still considered a recessionary level index, so September continues one of the longest strings of recession-level readings in the history of the survey that started in 1973.

Still, it is heartening to see small business owners -- who understand the real Main Street economy better than those on Wall Street, believing in the continuing potential of their businesses.

Posted by Rex Hammock on October 14, 2008 10:10 AM

The economy may be in a downturn, but you wouldn't know it by the atmosphere at Allentown Brew Works in Allentown, Pa. The restaurant is doing as much business as before, thanks to smart decisions by its management: taking expensive, low-profit items off the menu, for instance, while keeping ingredients fresh for cheaper entrees. Other business owners, too, may be spooked by the economy, but by refusing to sacrifice quality, they are keeping their businesses thriving, according to an Entrepreneur.com article featured on MSNBC.com.

"Right now, when we might be tanking because of the economy, when people are choosing between buying gas and eating out, they're finding us as the one place where they still want to treat themselves," Vincent Williams, owner of two franchise restaurants in Los Angeles, Calif., was quoted as saying. If the Wall Street crisis hasn't hit your business yet, chances are it's on its way. To learn more about how to keep your business steady through the economic turmoil, check out the six survival strategies that the article goes on to offer.

Posted by Emily McMackin on October 9, 2008 09:49 AM

Last week's $700 economic relief package should help bring an end to the economic downturn soon, says this Inc.com article. Although small business was never affected as heavily by the credit crunch as Wall Street, recent changes in the economy have left many entrepreneurs apprehensive about the future of their companies. Luckily, the recently passed legislation should free up credit for small business owners and consumers, as well as provide $100 billion in tax breaks for entrepreneurs.

According to NFIB President and CEO Todd Stottlemyer, "While small business owners have strong and conflicting feelings about the rescue package, in the end, their ability to grow their businesses depends upon stability and liquidity in the financial markets,"

Even while you wait for the market to stabilize, you can plan future growth for your business. Check out this Entrepreneur.com article for tips on growing during a recession.

Posted by Megan Pacella on October 7, 2008 04:23 PM

Having trouble getting a loan? You're not alone. With the credit crunch right now, many small business owners are struggling to borrow money. You can't turn the economy around, but you can take steps to lessen the pain to your bottom line. In today's Tools and Tips section of NFIB.com, Chief Economist William Dunkelburg suggests seven ways to keep your capital flowing during a credit crisis. From determining how the country's mortgage crisis really affects your loans to renewing your relationship with your banker, use these simple tips as a starter guide for helping you stay afloat when the economy tanks.

Posted by Emily McMackin on October 3, 2008 04:27 PM

For family business owners like Phil and Michell Wadzinski, who run Pecard Chemical, a company that specializes in leather care products, the thought of entering the global market seems impossible--especially in a down economy. But when the Wadzinski's won a Fortune Small Business Makeover, they realized that unprecedented growth is usually only a few steps away.

Expert business consultants spent a few days analyzing Pecard Chemical and brainstorming new ways to brand the company and help it expand rapidly. Ready to take your business to the next level? Watch this video to see how one small business found a way to grow.

Posted by Megan Pacella on September 24, 2008 12:24 PM

There's a bright side to everything—even the bad economy. For some small business owners, the rough economic waters are providing new opportunities—to grow into new markets, to expand globally, to run leaner, and the list goes on.

Don't believe it? Just read this article posted today on Smart Money.com. It profiles three small businesses where opportunity knocked despite the slump. The current issue of MyBusiness features a similar article, offering tips on navigating a downturn for any business—with an opportunity or not.

Posted by Lena Anthony on September 23, 2008 03:37 PM

If you're thinking about setting up a retirement plan for employees, the clock is ticking: Oct. 1 is the IRS deadline for when employers must set up a SIMPLE (Savings Incentive Match Plan for Employees). If you received a filing deadline extension for your 2007 returns then you have until Oct. 15 to set up a SEP (Simplified Employee Pension) in order to take a deduction for the 2007 tax year. Oct. 15 is also the date that 2007 contributions must be made to both plans for anyone who received a 2007 extension.

Confused about what all that means? Check out this Chicago Tribune article for a primer on different retirement plans for your staff. You might be surprised to learn why experts say a down market isn't a good excuse to avoid setting up or contributing to such plans.

Posted by Shannon McRae on September 15, 2008 09:21 AM

Around here, we remind people all the time that "Small Business is the nation's job-creation engine." Today, there's a great example of what we mean. According to a study released today by the payroll management firm, ADP, the private sector added a net 9,000 jobs in July.

While that growth in job surprised most experts, one thing didn't surprise us: Where all those net new jobs are coming from. Here's the key quote from the report:

"Growth was also helped by 50,000 jobs added by small businesses. By contrast, large businesses shed 32,000 positions."

Does this surprise you? Not if you run a small business.

Posted by Rex Hammock on July 30, 2008 12:06 PM

Like you, I don't like to read news articles that clearly display the reporter did not let something as inconvenient as facts get in the way of their trend story. For example, yesterday The New York Times ran a trend story with the alarming headline, "Worried Banks Sharply Reduce Business Loans." Wow, that's a scary headline. I know it scared me. As editor of MyBusiness magazine, I was scared that we'd totally missed a major story--banks are sharply reducing business loans and we missed it? But wait, I reassured myself, we have access to continuous research from NFIB measuring small business owners' experiences in trying to access capital and our latest numbers show that, while owners are clearly not optimistic about the economy, they are not yet indicating the credit crunch being reported in The Times.

Here's a sampling of The New York Times' lede:

"Banks struggling to recover from multibillion-dollar losses on real estate are curtailing loans to American businesses, depriving even healthy companies of money for expansion and hiring....The scarcity of credit has intensified the strains on the economy by withholding capital from many companies, just as joblessness grows and consumers pull back from spending in the face of high gas prices, plummeting home values and mounting debt."

The story focuses on an anecdote involving Wachovia Bank turning down a business loan for the purchase of a robot--implying that a rigid business loan market was the cause and that this is part of a greater trend. I was about to start tracking down why the research we track was so out-of-sync with the Times story, when I read this nugget in the story:

"Still, Wachovia’s commercial and industrial loans grew by 13 percent in June compared with the prior year..."

In other words, The New York Times article contains facts that clearly refute the story's headline and lede--but they didn't let that get in the way of a good trend story.

For the record, small business owners are not very optimistic these days, but access to capital is not yet showing up as a major concern in the longest-running continuous survey of small business owner optimism, NFIB's Small Business Economic Trends survey. The current monthly survey reveals the following:

"The net percent of owners reporting loans harder to get in recent months fell one point to a net 7 percent (8 percent said "harder," 1 percent said "easier"). The average reading since September's surprise Fed rate hike is 7 percent. Only 2 percent of the owners cited the cost and availability of credit as their No. 1 business problem (down 1 point), far from the record 37 percent reached in 1982. Thirty-five percent reported all their borrowing needs met (up one point) compared to 5 percent who reported problems obtaining desired financing (down two points), a three-point improvement in the net percent reporting all needs met. The remainder did not want to borrow.

So, to sum things up, The New York Times today reported that "worried banks are sharply reducing business loans," while the most current survey of small business owners reports that, compared to previous recessionary times, concern about access to capital is actually falling. Of course, this could change next month--and it likely will, if people start believing what they read in headlines of The Times.

Posted by Rex Hammock on July 29, 2008 11:08 AM

Almost half of small business owners polled in a recent survey said they plan to lay off workers, stop raises or offer days off instead of wage increases as a result of the slowing economy, according to this Wall Street Journal article.

But while trimming payroll might seem like the easiest move when times are tough, the article suggests business owners might want to think twice before handing out pink slips. Employees are valuable, especially skilled ones you've trained.

I liked the ideas such as switching up duties (why can't an account supervisor also help empty trash cans?), asking for volunteers who might want an extended amount of unpaid leave for the promise of their job back in a few months, or cutting your work week from five days to four.

Posted by Shannon McRae on July 28, 2008 09:00 AM

An economic slowdown is no excuse for putting business plans on hold, according to day's Tools and Tips article on NFIB.com. Just think: If you're scared to launch a new startup, so is everyone else--and taking the chance when others aren't willing to could give you a corner on the market. Here are a few advantages of starting a business when the economy is slow:

• Less Competition. If things are slow in the business sector, your new enterprise is more likely to catch buyers' attention.
• Slowdown coincides with development phase. Since the economy is slow, you'll have some time to work out the kinks in your new business. By the time things speed up, your business will be a well-oiled machine.
• Better deals for businesses. Other businesses will be offering deals on the supplies you need to launch your startup.

Check out the article for more information on launching a successful startup now.

Posted by Megan Pacella on July 25, 2008 03:05 PM

Worried you're going to have to let go of that new salesman or customer service representative you just hired a year ago? Think again, says Smart Money: "Conduct layoffs now, and you'll spend even more to train a whole new batch once the economy picks back up."

Instead, the smsmallbiz.com article suggests ways to cut back on payroll, either by reassigning tasks to an employee whose workload has dried up, reducing hours and wages and even asking for volunteers for a temporary (unpaid) leave of absence.

Are these the best solutions to the problem? Not by a long shot— but they sure beat having to let go a loyal, trained employee.

Posted by Lena Anthony on July 21, 2008 04:51 PM

Just yesterday I was picking up a few things from the grocery store and remembered that I was out of dishwashing liquid. Quickly scanning the shelves I found my favorite brand of ecofriendly soap. I also noticed that I was paying a good bit more for it than the other well-known brands my mom has used my entire life. But I'm willing to do it. Protecting the environment and my family from harsh chemicals is worth a few more dollars.

The owners of this civil- and environmental-engineering firm are banking on the idea that a lot of other Americans are like me--willing to pay a little more to help the environment. The Wall Street Journal explains how Sherwood Design Engineers charges clients an extra 0.05 percent of their bill to put toward renewable-energy credits. So far, no customers have balked at the fee, says Bry Sarte, the firm's chief executive.

Posted by Shannon McRae on July 8, 2008 10:50 AM

No matter which news station I watch or newspaper I pick up, it seems that every media outlet only offers a bleak economic forecast. That's why I was intrigued when I saw this article on BusinessWeek.com, which argues against getting overly concerned about the economy.

The article points to a recent op-ed in the Wall Street Journal entitled "Life is Good, So Why Do We Feel So Bad?," which states, "It would seem that there really are two...American economies—the real economy and the perceived one." The article also points to a 2007 poll asking Americans if they consider themselves part of America's "haves" or "have-nots." Surprisingly, 75 percent of respondents consider themselves part of America's "haves."

Obviously higher fuel and food prices, and a slumping market spell out some trouble for small business owners and other Americans, but it's nice to hear a different viewpoint of the economy. Check out the article for on our economy's bright side.

Posted by Megan Pacella on July 1, 2008 11:40 AM

Lots of small business owners consider it a major milestone when they move their startups from their homes into their own office space. But in a tough economy, some entrepreneurs are making the decision to go home again. This AP article profiles a young startup that returned to the founder's New York City apartment when cash flow became tight. But owner Robin Stein is staying positive: "We need to be cautious so that we can manage this stage in business," Stein said. "I think we'll be fine in the long run."

If you're considering downsizing office space or returning to your home-based roots, don't consider it a sign of failure. Some owners end up being even more productive at home after they cut out the wasted time commuting to and from the office.

Posted by Shannon McRae on June 23, 2008 09:28 AM

With the bleak economic picture these days, you can’t afford to lose employees. But tough times call for tough measures—and sometimes that can mean suspending bonuses, cutting benefits and the like. When this happens, how do you keep employees from looking elsewhere for better opportunities? You might get some ideas by checking out this article in the Chicago Tribune. Learn how a one store was able to keep its best employees from jumping ship after massive layoffs, and how another business keeps employees motivated through sluggish sales periods.

Posted by Emily McMackin on June 13, 2008 09:15 AM

If you're looking to sell your business, here's some good news: When people can't find jobs in a tight economy, they're more likely to look into buying one (read: buying your business), says this New York Times article, which cites a 66 percent increase in sales made via bizbuysell.com in the first quarter of 2008 over the same period last year.

Now for the bad news: It's a buyer's market, the article says, which means if you are looking to sell, you're going to have to settle for less money.

Posted by Lena Anthony on May 28, 2008 09:01 AM

Never fire someone on a Friday. It's one of the rules of business my dad has ascribed to in his almost two decades of owning a small business. His thinking is that if you fire someone on Friday, they'll spend the weekend worrying about their future and brooding over the fact they've been let go. But if you deliver the bad news on a Monday morning, they have the whole week to get their resume together and contact potential leads.

Whether dad's rule is right or not, he follows it because he feels terrible when he has to fire an employee (most of the time). As it turns out, the human resources expert in this Salt Lake Tribune article on making layoffs go more smoothly agrees. From the practical (contact your lawyer first) to the humane aspects (check the calendar and make sure it's not the person's birthday or anniversary), find tips on lessening the blow when you have to let someone go.

Posted by Shannon McRae on May 12, 2008 07:24 AM

Business is easy (and even fun) when you have a product or service that everyone wants. But what happens when what you're selling fades in popularity? How do you market products that are no longer popular? That's the focus of this Knowledge@Wharton article which chronicles the trials of a Hummer dealership as well some real estate investors in down markets.

Even if your product isn't considered unpopular, some business owners must overcome consumers' hesitation to buy a new product when the old one they have still works. If that's the case, offering trade-in discounts are a good idea, according to some of these examples.

Posted by Shannon McRae on May 5, 2008 08:33 AM

You might be tired of hearing constant talk about global warming, buying a hybrid and anything else eco-friendly, but that doesn't mean the green trend is going away any time soon. In fact, America's emphasis on all things green can help your small business weather the current economic downturn--but only if you're willing to take steps to create a more environmental business.

Think "greening" your business sounds too difficult? Think again. According to this USA Today columnist, all it takes is a few easy steps. For example, shutting down computers, printers, fax machines and other electronic office equipment at the end of day can drastically cut your energy consumption--and your electric bill. Ready to take on a greener challenge? The market for green products is exploding, making it the perfect time for your business to start selling an environmental product or service.

The bottom line is this: Now is the perfect time to make money by saving the planet. Check out the column for more ways to make your enterprise--and your bottom line--a little greener.

Posted by Megan Pacella on April 29, 2008 10:27 AM

Not sure how to boost your sales during a slow period? According to this Wall Street Journal article, you have to set yourself apart from your competitors in order to stay on top--and in most cases that means finding a niche in your industry.

Not sure how to find your niche? It might be easier than you think. According to Gayle Clark, owner of Detriot-based Motor City Sales and Services, an automotive repair shop that created a niche by catering to women, finding your niche is as easy as paying attention to your customers' needs. “Don’t just offer whatever your service is," Clark says. “Interact with them and get to know them. They are your foundation and the reason you’re doing what you’re doing.” By taking your clients’ suggestions seriously, you can find a unique place in your industry.

Check out this MyBusiness article to learn more about how Clark created a niche for her business--and how you can find a niche for your business, too.

Posted by Megan Pacella on April 8, 2008 03:16 PM

This past weekend I traveled to Ohio to visit my family for Easter. During a family party on Saturday night, the conversation inevitably turned to the jobless economy of the small rust belt town where I grew up. if only I had read this Wall Street Journal article before going to visit.

Small industrial towns all over America are suffering the same job losses as my hometown, but it's not time to throw in the towel just yet. According to the article, environmental jobs could be the future for small towns like Hayfork, Calif., which capitalized on green logging in order to bring jobs back to its residents.

Read on to learn more about how green jobs can boost a struggling town's economy.

Posted by Megan Pacella on March 25, 2008 09:30 AM

If you're in real estate, you felt the pinch of a slowing economy months ago. But for many other small business owners, the only indication of a slowdown is in the news. Yet owners like Carol Yenne, who is profiled in this San Francisco Chronicle article, are thinking ahead and taking small steps to protect themselves from any potential setbacks.

For Yenne, it meant waiting to fill shifts left vacant by employees who cut back their hours. Not a drastic move--just one that makes Yenne feel more cautious. Check out these other commonsense tips on how to be smart in times of economic uncertainty.

Posted by Shannon McRae on March 24, 2008 09:17 AM

With every nightly newscast leading with a story about the nation's imminent economic doom, it's hard not to be discouraged about the coming months. If your industry has started to feel the pinch, your initial reaction as a business owner may be to scrap all unnecessary spending--starting with marketing and advertising.

But this article from Harvard Business School's Working Knowledge newsletter discourages that approach. Instead, it emphasizes retooling your campaigns with a more recession-friendly strategy. The eight tips offered here cover ideas like how it's more important than ever to research your customer (don't waste money marketing to the wrong person) and the need to emphasize family values (since we all tend to cozy up at home when we feel uncertain about our economic futures).

Posted by Shannon McRae on March 10, 2008 06:39 PM

You have to spend money to make money--and, it turns out, to save money too. As the economy slows, you're probably looking for some belt-tightening measures in your small business. This AP article offers several ideas--the catch is that all of them require you to spend a little upfront.

The Russo Group, a marketing firm in Lafayette, La., hired a CFO whose strict rules reduced expenses by 18 percent in one year. A PR firm in California outsourced all its HR duties to a professional employer organization--a move that saved both time and money. By outsourcing these time-consuming functions, executives could spend more time on their PR business--the best bet for a business trying to stay ahead of a recession.

Posted by Shannon McRae on February 18, 2008 09:06 AM

Maybe your business is booming, but that doesn't mean your employees aren't affected by the continued housing woes or the country's potential economic recession. And, chances are, when your employees are experiencing financial problems in their personal lives, the anxiety and emotional overload that sets in can hurt your business—and your bottom line.

When employees at Schaumburg, Ill.-based Quality Float Works, Inc., start to look stressed, vice president Jason Speer offers interest-free loans to help employees get back on track, says this CNN story. By improving their employees' personal lives, Quality Float Works, Inc., makes their home lives easier—and ultimately, that makes for happier, more productive employees.

Are your employees looking worn out or distracted? Check out the article for more information on how you can tell your employees are in financial trouble and what you can do to keep economic problems from intruding into your workplace.

Posted by Megan Pacella on January 31, 2008 06:29 PM

Despite the woeful tales of real estate crisis, skyrocketing oil prices and tight credit lines surrounding the end of 2007, experts report that the forecast for 2008 is looking slightly brighter—especially for small-business owners. While some small businesses might feel the pressure of a failing housing market and expensive gas prices, few small-business owners have reported problems with credit conditions, says this Entrepreneur.com article.

Gerald Celente, director of the Trends Research Institute, reports that now is the perfect time for small-business owners and entrepreneurs to find their niche, especially with alternative energy poised for a breakthrough.

Having the flexibility to tailor your business to market trends is one great perk of owning your own business. Check out this article for more information on the 2008 forecast and how it will affect your bottom line.

Posted by Megan Pacella on January 4, 2008 03:04 PM

If doing more good was one of your resolutions this year, here's your chance. Kiva is an organization that lets you make microloans to entrepreneurs in the world's poorest countries. You get to pick the business yourself and then loan the money via a credit card. Kiva handles getting the money to partners in the various countries who distribute the money to the business owners. Throughout the payback period, usually six to 12 months, you can receive email journal updates from the business you're helping. Loaning a little can earn great rewards--mostly in the form of a reality check. Because even though owning a small business is the world's hardest job, aren't we lucky to be doing it in the world's greatest country?

Posted by Shannon McRae on January 2, 2008 11:55 AM

I interviewed the most interesting NFIB member a few weeks ago. The story I was working on was about the rising cost of health care, but during the interview, I spent lots of time learning about this woman's business, the oldest commercial river touring company in the Grand Canyon. Doesn't that sound like a fun business? I immediately envisioned rafting trips and star gazing and being one with nature. Turns out Joy Staveley and her husband, Gaylord, get to do all that--but they also face the same headaches every other business owner faces--affording health insurance, retaining key employees and dealing with government regulations. If you ever daydream of a business you think might be more adventurous than yours, check out this Q&A with the owner of an Alaska tour operation on the WSJ's small-business blog. It gives some great insight on the ups and downs of seasonal businesses.

Posted by Shannon McRae on November 26, 2007 11:34 AM

In the face of plunging stock prices, a faltering housing market and the soaring cost of gasoline, the fate of the business world does not look promising—unless you’re a small-business owner. According to this New York Times article, a report released by Automatic Data Processing, Inc., and Macroeconomic Advisers reveals that private sector employment is booming, despite the gloom and doom surrounding America’s economic conditions.

Read on to learn how small businesses are keeping the economy afloat and outdoing box stores and large businesses.

Posted by Megan Pacella on November 13, 2007 12:11 PM

We've been living in a rental house for a few months while we're doing some renovations to our home, and I'm embarrassed to admit it--but renting is different. You don't care as much about the carpet, or the yard, or if it takes three tries to hang a picture as you do when it's your house. (Hope my landlord isn't reading this!) I'm confident that I'm a good renter, but having a stake in something changes your perspective. That's exactly what researchers in a new study on consumer-driven health care found, too.

According to a paper published in the Journal of the American Medical Association, CDHPs are "working as intended." The group Consumers for Health Care Choices, which funded the study, says that "all of the empirical evidence shows they are changing patient behavior, which is lowering costs and improving care, and resulting in a sizzling rate of adoption in the market."

That's good news for small-business owners, who have suffered rising health-insurance costs for years. Learn more about all NFIB is doing to help lower costs here.

Posted by Shannon McRae on November 5, 2007 02:10 PM

Do you know who your high potential workers are today and who your future leaders will be tomorrow? That's the question this CNet News article asks as it explores how businesses can beat the predicted talent crisis our country faces. "The U.S. is estimated to face a 10 million worker shortage in 2010; the 500 largest companies are expected to lose 50 percent of their senior management in five years and the average tenure at one employer for U.S. employees is only three years," Tod Loofbourrow writes.

"Total rewards" packages (which don’t focus exclusively on monetary compensation) are considered one of the best ways to attract and retain star employees. Using benefits to attract talent might depress some small-business owners, whose sky rocketing health-care costs have forced them to cut back--or cut out--health-insurance offerings. But chin up: The article also touches on several ways companies can use culture to instill loyalty among employees.

Posted by Shannon McRae on October 29, 2007 06:14 AM

Doesn't it feel good to be appreciated? For years global companies have touted their strategies to lure small-business customers like you. Last week when IBM announced stronger-than-expected third quarter earnings, the company said its sales to small business are making a big difference, according to USA Today's Small Business blog. "I think that took some people by surprise, since IBM is not really known as a small-business vendor," said analyst Charles King, a researcher at Pund-IT. "But they could really get a toe into this market."

Posted by Shannon McRae on October 22, 2007 08:17 AM

Men and women are different--and driving across the country with my husband only reinforced that idea. While I wanted to turn around as soon as we thought we were headed in the wrong direction, make hotel reservations before we arrived in a town, and stop to use the restroom more than once a day--he didn't. Both of our methods for cross-country travel would take one from point A to point B--just in different ways.

So I wasn't surprised at all to see a study released last week from the SBA Office of Advocacy that found while gender doesn't affect new venture performance in a small business, several factors vary between men and women business owners, including expectations, motivations and reasons for starting a business.

Posted by Shannon McRae on September 17, 2007 08:06 AM

Every month, the Discover Small Business Watch compiles information gathered from telephone interviews and surveys with small-business owners and consumers of small-business products and services. This data helps gauge the levels of economic confidence and the status of business growth and spending according to small-business owners. Such information can help you make informed decisions that will help your business grow and withstand adverse economic conditions. Here are some highlights of August's results:

• 35 percent said recent changes in the housing market have had a significant impact on their business.
• 69 percent of small-business owners said they prefer to have their business remain small.
• 41 percent said they have experienced cash-flow issues in the last 90 days, an increase over last month’s 35 percent.
• 36 percent of small-business owners feel that economic conditions for their businesses are getting better, a significant decrease from 41 percent in July.

Visit Discover's business Web site to learn more about the August survey.

Posted by Megan Pacella on August 28, 2007 10:28 AM

My mom and dad have owned a staffing firm for almost 20 years. They're some of the few small-business owners who benefit from extremely low unemployment rates (when businesses have trouble filling open jobs, they're more likely to use a recruiting service). It sounds like the owner of this McDonald's franchise in Helena, Mont., could use my mom and dad's help. According to the AP story, John Francis had such trouble finding workers that he outsourced the drive-thru window to a telemarketing service in Texas.

The NFIB Research Foundation's monthly Small-Business Economic Trends survey (which has tracked small-business hiring plans since its inception in 1986) found that 23 percent of business owners had unfilled jobs in August.

Posted by Shannon McRae on August 26, 2007 05:47 PM

Two thousand fewer people applied for unemployment insurance for the week ending Aug. 18, according to this BusinessWeek article. According to the Department of Labor, this marks the first drop in new unemployment claims in about a month.

The NFIB Research Foundation recently released results of a poll measuring unemployment compensation, also finding fewer workers leaving their place of employment. The poll found that during the last year, nearly half of all small businesses experienced no employee turnover. Seventy-three percent of the small businesses did not fire any workers, and 87 percent did not have to lay anyone off for economic reasons.

Read more about the results, or access the complete poll at NFIB.com/research.

Posted by Megan Goodchild on August 23, 2007 02:54 PM

As school starts around the country for many this week, the realization that summer is almost over sets in. Around this time of year, I always wish I'd have taken just a few more trips--to the lake, to the beach, to anywhere really. For a growing number of Americans, the desire to get away has inspired them to do what most of us just dream about: Pack it all up and move to somewhere fun and fabulous.

This New York Times article (subscription required) explains that "as technology enables people to live and work wherever they want, increasingly they are clustering in resort playgrounds that have natural amenities, good weather--and, now, lots of people like themselves."

The advantages to living in a resort town are endless, I'm sure. Yet the realist in me knows the cost of living can be crazy expensive in a lot of these places. It's an interesting spin on an exit strategy though. And if your small business is portable and your banking account supports it, why not?

Posted by Shannon McRae on August 20, 2007 07:28 AM

So, sales are slow? You've hit a dead end with your business? If either of these concerns have been weighing on your mind lately, it might be time to reinvent your business. Easier said than done, right? According to a Newsday article by Jamie Herzlich, pulling off this magic trick isn't as difficult as it might seem—as long as you take the proper steps and don't go changing your business willy-nilly. Herzlich recommends this strategy:

•Keep your eyes and ears open in the marketplace for signs about which direction to go
•Talk to employees, customers and suppliers to isolate the growth opportunities in your business/industry
•Evaluate your weaknesses and play your strengths, looking for joint ventures and strategic partnerships with complementary businesses
•Test new products/services on existing customers, then look for ways to expand your reach

Glean more insight on how to reinvent your business in our Dec./Jan feature, "Changing Lanes." We explore how owners of a bowling alley, a deli and a document storage and retrieval business took their companies from bust to boom.

Posted by Emily McMackin on August 10, 2007 09:17 AM

With so many corporate manufacturing plants moving overseas, it seems hard to believe that there is much room for small-business growth in the manufacturing sector. But a recent survey by the Kauffman Foundation proves otherwise. The survey found that manufacturing sales have risen 20 percent between 2002 and 2006 and 70 percent of all U.S. manufacturers have 20 employees or fewer.

So how are they managing to grow despite the overseas competition? According to this article by Phaedra Hines for Fortune Small Business, many successful small manufacturers are coming up with creative ways to produce products rapidly and keep customers happy.

Posted by Lena Anthony on May 16, 2007 10:15 AM

When I worked in New York City for a few years after college, one of my colleagues (who was born and raised in Brooklyn) was fascinated by my Southern roots. She'd never been south of Washington, D.C., and often asked me questions like, "Do you have stores in your town?" I'm sure she was imagining a land of cows pastures and dirt roads. While both of those exist in my hometown, so does a lot of booming industry--which is why for the second year in a row, the Southeast dominated the top 10 list of Forbes magazine's best places for business. Raleigh, N.C., snagged the No. 1 spot, while four other Southern cities ranking in the top 10 as well (including Nashville, Tenn., home of MyBusiness headquarters). Lower business costs, a highly educated workforce and affordable housing are just some of the criteria researchers used to rank the cities. Y'all are welcome to visit any time to see what all the fuss is about.

Posted by Shannon McRae on April 30, 2007 11:17 AM

The month of April is in full swing, and one dreadful word is on everyone’s mind—taxes. With the deadline looming, many small-business owners find themselves adding extra stress to their load.

According to the March Discover Small Business Watch survey, 77 percent of small-business owners find keeping up with taxes a stressful and time-consuming ordeal. In order to avoid the distractions, 73 percent hire a tax professional to take care of the hassle instead.

The survey also mentions how small business owners prefer to find a trustworthy accounting firm to file their taxes. For an overview on the survey, check out Andrea Coombes’ article on StartupJournal.com.

Posted by Megan Pacella on April 3, 2007 01:27 PM

Small business is all the rage these days, especially on college campuses. Ten years ago, business programs at most universities were preparing students to work for large corporations, but all that has changed, says this article in the Startup Journal. Many institutions are revamping their business programs to appeal to the desires of a new entrepreneurial-minded generation. So what sparked the shift in business education?

“We’ve got a generation coming up that has a very different outlook on life than the one before it,” Belmont University’s Jeffrey Cornwall told the Startup Journal. “They’re more interested in balancing their work with their family life, and that makes entrepreneurship attractive to them.”

Want to help future entrepreneurs with their studies? Consider sponsoring a scholarship or a student for NFIB’s Young Entrepreneur Awards, given annually each spring to set future small-business owners on the path to entrepreneurship. Find out about other ways NFIB is encouraging young entrepreneurs—and ways you can help—at NFIB.com/YEF.

Posted by Megan Pacella on March 29, 2007 01:18 PM

While running errands downtown this weekend, I found a five-dollar bill on the sidewalk. I hesitated when I saw it--should I pick it up? Am I being watched by some sort of hidden-camera show to see what people will do when they don't know they're being watched? Since it was only five dollars and since no one around seemed to have lost any money, I picked up, chalking it up to a lucky day for me.

Unfortunately for small-business owners, finding capital isn't as easy. But the good news is that funding is available--if you know where to look. Check out SmartMoney.com's special section on the six best places to find capital for your business.

If you know you just need a loan, then this article from a past issue of MyBusiness can help. We break down the difference in the loans available from the Small Business Administration.

Posted by Shannon McRae on February 18, 2007 08:51 PM

Eighty-two percent of business owners surveyed in the most recent NFIB Small-Business Economic Conditions poll said there were few or no qualified applicants to fill open positions within their businesses. Such a tight labor market forces owners to come up with creative recruitment methods.

Some start with proven success stories: star employees. Why not ask them if they have friends or family looking for a job? While this Arizona Republic article points out a few situations to avoid (don't hire someone's aunt just because she "needs a job"), asking reliable employees for applicant referrals might help you fill that open position faster.

Posted by Shannon McRae on February 12, 2007 08:54 AM

Small-business owners beware: The IRS is watching you. An article in American Business Daily explains that members of the Senate Finance Committee recently asked the IRS to come up with a plan for closing the estimated $290 million tax gap (the difference between what federal taxpayers owe and what they actually pay). Upon hearing its assignment, the agency pointed to business owners as the biggest source of the problem, claiming that underreported business income makes up one-third of the tax gap.

This issue has NFIB written all over it--the small-business advocacy group refuses to stand by and let the government balance its books on the backs of independent-business owners. A story in the current issue of MyBusiness magazine explains why the IRS is barking up the wrong tree.

Posted by Shannon McRae on February 7, 2007 09:01 AM

"What did you do this weekend?" "Oh, raised $4.1 million in venture funding for my new Web site." I don't know about you, but I didn't have too many conversations like this in high school. Yet last week, investors announced they were sinking cash--and lots of it--into myYearbook.com, a site created by 17-year-old Catherine Cook that lets teens create their own digital yearbooks.

Teenagers today are proving that age isn't a barrier to the business world if you have a good idea and know how to execute it. The NFIB Young Entrepreneur Foundation hears stories of amazing young businesspeople all the time. Joe Pascaretta, a former winner of the Foundation's annual scholarship award, didn't waste his first semester of college skipping class and eating pizza. Instead, the University of Michigan freshman's landscaping firm grew more than 239 percent to gross more than $1 million in 2006. Kind of puts to shame that "B" in biology that I was so proud to earn my freshman semester.

Posted by Shannon McRae on January 29, 2007 10:48 AM

Last night was one of those rare occasions in my house where we ate dinner in front of the television. I usually make my husband turn off whatever ball game is on so that we can have a civilized discussion about our days. But we broke the rule last night so that we could watch the president's State of the Union address (we live on the West Coast, so it was on during our dinner time).

In addition to hearing what Bush had to say, it was also fun to watch the sideshows: Obama was seated directly in front of Clinton. Did you notice how that basketball player towered over Laura Bush?! And how cool that the president pointed to a successful small-business owner--the founder of Baby Einstein. Even more impressive: NFIB member Joe Balsarotti and his employee Dan Jones were among the guests included in the first lady's viewing box.

Bush outlined a lot of important initiatives, but none hit as close to home for small businesses as his health-insurance plans. Independent-business owners don't have to be told there's a crisis in this country. Maybe this Congress will finally solve it instead of fighting about it. In case you missed it, here's his speech in its entirety. And check out NFIB's response to the president's health-care plans.

Posted by Shannon McRae on January 24, 2007 09:00 AM

Small-business owners ended 2006 on a serious note, according to the latest NFIB Research Foundation Small-Business Economic Trends Report. Declines in job-creation plans as well as a drop in the number of business owners who expected the economy to improve sent the Small-Business Optimism level down 3.2 points to 96.5 (1986=100).

October readings showed near record-high rates of business owners planning to create new jobs. But by December, that number dropped sharply to just 10 percent. Ten percent of the owners reported that the availability of qualified labor was their top business problem, down two points from November and five points from October, indicating that labor market conditions may be easing.

Read more about what the survey predicts about the first quarter of this year here.

Posted by Shannon McRae on January 11, 2007 08:31 AM

The U.S. military thinks your business may hold some secrets about how to win the war on terror. A recent USA Today article suggests that it's not off base to think the solutions for winning the war on terrorism may be found within our country's capitalist society--ironically, the very values terrorists purport to hate.

Why is the military looking to businesses, especially small businesses? Because, as the article explains, "the world of geopolitics has discovered itself to be on the same road that business has been on for some time. That road is flatter, more networked and more decentralized than ever."

By looking at how small companies like YouTube, Skype and Wikipedia are giving old giants in their industries a run for their money, the military hopes to gain some ideas it can use to fight al-Qaeda and other terrorist organizations.

Posted by Shannon McRae on January 8, 2007 01:46 PM

No matter how great of a boss you think you are, chances are, lots of your employees would take a better offer if it came along. Two-thirds of all employed U.S. working adults are open to changing jobs in 2007, according to a new Yahoo/Hot Jobs survey. Low unemployment rates and rising wages were the main reasons why 70 percent of those surveyed think 2007 is an ideal time to find a new opportunity.

For small businesses, replacing employees is extremely time consuming. Every position counts--small employers don't have a lot of fluff in their staffs. If replacing a few employees sounds like the last thing you want to do this year, find ways to keep them satisfied before they actually pursue new jobs. We've all read the surveys on how salary isn't necessarily the No. 1 reason people are happy with their jobs, but check out this article from the latest issue of MyBusiness to make sure that money isn't the reason your employees start checking out the want ads.

Posted by Shannon McRae on January 3, 2007 10:59 AM

Small-business owners around the world may have different views of the current business climate and different challenges to face in the new year, but there is one thing that they all share: optimism.

MasterCard's annual Global Small Business Survey revealed that small-business owners feel hopeful about the upcoming year and confident they will meet financial goals in 2007. While 27 percent named competition as the biggest challenge ahead, more than half believe that globilizing their business will help them overcome this and acheive even more success. One interesting finding: the number of hours that business owners spend on administration is often proportional to the number of employees they manage, with most spending about 18 hours (in a 50-hour week). The survey, which polled 4,000 small-business owners worldwide, also details how regional differences affect small business around the world.

As for us here at MyBusinessmag.com, it's been a great year. Thanks for sticking with us through the changes to our Web site and, as always, thank you for your continued readership. Check back with us on January 2 for more of the latest news, tips and resources to help you run your small business. Until then, have a Merry Christmas and a Happy New Year!

Posted by Emily McMackin on December 22, 2006 09:56 AM

I keep thinking I'm done with my holiday shopping--and then I remember a few more things on my list. My goal is to knock it all out this weekend so that I can relax and actually enjoy the last week before Christmas. When I head out on Saturday morning, I'm going to make sure to shop first at locally owned stores. Not only will I avoid the parking-lot madness and massive crowds that overtake the mall and big-box stores, I'll also be supporting a small-business owner who contributes to my community. Need more convincing? Check out NFIB's five reasons you should shop local businesses this holiday season.

Posted by Shannon McRae on December 14, 2006 04:08 PM

None of us can see into the future (and that's not a bad thing when you think about it). But if you're working hard, yet feel like you're not getting anywhere with your business, good news. Forget about predicting the future. New research from Six Disciplines Corporation finds that success might can be boiled down to just five attributes.

Small Business Trends Blog editor Anita Campbell recently revealed the traits most often shared by successful businesses with 10 to 100 employees. The first four are no surprise: a strong leadership team, the ability to attract and retain quality employees, a disciplined approach to business and strategic use of technology. But like Campbell, you might be surprised by the fifth: the wise use of trusted outside providers.

If you're trying to do it all yourself, relax--and seek help. The smartest businesspeople know that no one knows everything. Find advisors you trust and tap into their knowledge. Your future will look brighter.

Posted by Shannon McRae on December 13, 2006 02:39 PM

Small-business owners are full of holiday cheer as we enter the last month of 2006. Two recently released surveys show small-business owners' confidence in the U.S. economy continues to rise.

The Discover Small Business Watch survey saw an increase for the fourth straight month, with almost half of respondents rating the U.S. economy as "excellent" or "good." November's spike came from a substantial spike in the number of owners who think economic conditions for their businesses will improve during the next six months.

The latest Small-Business Economic Trends report from NFIB's Research Foundation also measured an uptick in confidence last month, rising 1.3 points to 100.7 (which is close the 30-year average of 100.2). "The domestic economy is hardly on the ropes, even with a weak housing market," the Foundation says.

Posted by Shannon McRae on November 27, 2006 09:57 AM

I'm already tired of Christmas music, and that makes me sad. For the past few weeks, I've heard Bing Crosby crooning in most of my local retail shops. Can't we eat the leftover turkey before we pull out the Christmas lights? Guess not.

The music, the decorations and the crowds mean one thing: Holiday shoppers are coming. Each year, retailers set their sights (and sites) on topping their previous year's sales records, and the 2006 holiday shopping season is no exception.

The good news for small business is that online shoppers aren't only drawn to national retailers. In fact, 75 percent of holiday shoppers said they are likely to purchase gifts online this year from small businesses, according to a Yahoo Small Business survey conducted by Harris Interactive (press release link). Topping shoppers' wish lists: secure payment systems, easy customer checkout and free shipping.

If you want to find tips on increasing your ecommerce, visit this section of the NFIB.com's Business Toolbox. Better get started soon before Valentine candy boxes fill stores.

Posted by Shannon McRae on November 20, 2006 02:22 PM

The Tax Foundation, a nonpartisan, nonprofit research organization that monitors tax policy, recently named the best--and worst--states for business in its 2007 State Business Tax Climate Index. Wyoming topped the "business-friendly" list, while Rhode Island came in as the worst in the rankings. The foundation measured the competitiveness of each state’s tax system in five different sectors: corporate tax, individual income tax, sales tax, unemployment tax and property tax.

According to the foundation, the 10 best states for business are: Wyoming, South Dakota, Alaska, Nevada, Florida, Texas, New Hampshire, Montana, Delaware and Oregon. The 10 worst states are: Minnesota, Maine, Iowa, Nebraska, California, Vermont, New York, New Jersey, Ohio and Rhode Island. Read the full report here.

With Election Day less than a week away, NFIB is fighting for candidates who can deliver tax relief for small business. Read more about the tax issues that matter most to small-business owners here.

Posted by Jamie Roberts on November 1, 2006 10:26 AM

With elections just a few days away, one issue that doesn't seem to be bothering small-business owners is the economy. A Discover Small Business Watch survey released today found that during the past month business owners reported big jumps in cash flow and a greater willingness to invest in business development. Forty-four percent rated the economy as "excellent" or "good." Sixty-one percent reported they had no cash-flow issues.

This survey is a little more upbeat than the most recent numbers available from NFIB's Small-Business Optimism Index. In September, NFIB reported that while the labor market was very strong, small-business owners were less confident about the overall economy. The Optimism Index rose from the August reading, but NFIB Chief Economist Bill Dunkelberg remained cautious.

Now with the stock market experiencing robust growth in recent weeks and the Fed keeping inflation in check, business owners seem to be responding with greater certainty about their economic futures.

Posted by Shannon McRae on October 30, 2006 03:07 PM

Belt-tightening at the pump takes on a whole new meaning thanks to a study released by the University of Illinois. Researchers found that Americans are using nearly 1 billion more gallons of gasoline each year than they did in 1960 because of expanding waistlines, according to this AP article. More weight makes for lower gas mileage, so your arteries aren't the only thing you'll save if you pass on that super-sized burger combo.

"The bottom line is that our hunger for food and our hunger for oil are not independent," says study co-author Sheldon Jacobson. "There is a relationship between the two."

Recent trends in consumer-driven health plans have some small businesses looking at the value of promoting wellness habits among employees. As gas prices continue to rise, healthy eating habits might not only affect your insurance premiums--they could affect your fleet's fuel bills as well.

Posted by Shannon McRae on October 26, 2006 01:04 PM

Are you more worried about the cost of a tank of gas or a visit to the doctor's office? According to a new study by PNC Financial Services, energy has overtaken health-insurance costs as the No. 1 problem small- and mid-sized business owners want to see addressed in the miderm elections.

USA Today's blog points out that the survey was conducted before energy prices fell (before they started to rise again). But as cold weather sets in (and as prices likely continue to rise) energy-cost concerns won't be going away any time soon.

NFIB monitors what small-business owners are thinking in its Problems and Priorities surveys. In the most recent edition, health-care costs still topped the list (while energy came in at No. 4). But the top spots on this survey are a lot like the college football top 25--any number of teams deserve the No. 1 spot (except, unfortunately, my Auburn Tigers).

Posted by Shannon McRae on October 11, 2006 12:41 PM

Small business hopes rebounded in September as the NFIB Small-Business Optimism Index rose 3.5 points to a more normal level of 99.4. "This confirms the slowdown in the economy anticipated in the July survey – down, but not out," said NFIB Chief Economist and MyBusiness magazine columnist William Dunkelberg. The Index, bouncing back to near its 30-year average, was lifted by positive movement among six components including the outlook for an improved economy, favorable earnings and higher sales. Inflation pressure also eased.

Posted by Rex Hammock on October 10, 2006 10:45 AM

Finally, something from the federal government that is useful for small-business owners. Business.gov, dubbed as "the official business link to the U.S. government," relaunches today, providing one-stop shopping for business owners looking for information on how to comply with government regulations.

Managed by the Small Business Administration, Business.gov compiles information from 21 federal agencies in an effort to improve the way the federal government serves citizens and businesses.

First launched in 2004, Business.gov originally focused on resources for starting, growing and managing a business. But focus groups revealed that what business owners really wanted was help dealing with the all the paperwork and rules about running a business. The easy-to-navigate site is divided into topics and industries.

Posted by Shannon McRae on October 2, 2006 10:09 AM

As the weather cools off, so does the optimism of America's small-business owners. In August, NFIB's Small-Business Optimism Index fell more than two points to 95.9, the lowest reading recorded since March 2003.

Borrowing difficulites seem to be the main trigger of the downward turn. Regular borrowing activity was reported by 46 percent of owners, up eight points from July, and the highest level recorded in the survey's 20-year history.

"Credit has become more expensive. It's significant that more owners want it and a higher percentage of owners are having a tougher time getting it," said Bill Dunkelberg, NFIB's chief economist. "Owners expect the coming months to bring increased borrowing difficulties."

Two positive signs in the monthly survey: the percent of firms with unfilled job openings and the percent of owners planning to create new jobs.

Posted by Shannon McRae on September 13, 2006 04:11 PM

Five years and one day ago, Chuck Call, CEO of Albuquerque-based ICx MesoSystems, could have never guessed how his business would change. In the five years since the terrorist attacks of Sept. 11, the company has sold about 600 of its air-sampling devices, which are capable of sniffing out bioterrosim agents, to federal, state and local agencies, driving up ICx’s sales this year to $7 million.

According to a story in USA Today, the events of 9/11 caused the homeland security business to boom. The industry now accounts for more annual revenue than the movei-making or music industries.

Though corporations have been the big winners of government contracts, small businesses have gained their share of new business as well. In the last fiscal year (which ended in June) small businesses accountd for 33 percent of all contract dollars spent by the U.S. Department of Homeland Security. That exceeds the U.S. Small Business Administration's goal of having 25 percent of all contracts go to small companies.

Posted by Shannon McRae on September 11, 2006 04:25 PM

If you have customers, don't miss the guest columnist's post on the Small Business Trends blog. Author Mary Hunt offers 5 Do's and 5 Don'ts when selling to women small-business owners. Most of the advice is common sense but it's always good to be reminded of basic selling tips.

Hunt urges sellers to protect their "cyber karma" since women use word-of-mouth referrals far more than men. "Email and blogs have upped that communication ante. Make sure they leave your office, phone call or website happy--or at least not ticked," she writes.

She also offers a good piece of advice when selling to any customer (male or female): Don't overlook the power of "thank you."

Posted by Shannon McRae on September 6, 2006 08:07 AM

A new survey about the small-business take on the U.S. economy reveals similar findings to what we've been hearing recently: Things are OK, not bad, not great. According to a survey by Discover Business Card, small-business owners are more optimistic about the overall economy than the general population: 39 percent of business owners rate the economy as "excellent" or "good," compared to 34 percent for the general population. But in looking into their crystal balls, almost 60 percent of small-business owners surveyed feel economic conditions are getting worse.

This recent news is in-line with results from the monthly NFIB Small-Business Economic Trends. While small-business optimism took a dip in May and June, it crept back up again in July signaling that business owners aren't quite sure what to make of the current market. Luckily the Fed is responding by raising interest rates in hopes of slowing demand enough to keep firms from raising prices, thus staving any worries of rising inflation.

In the meantime, small-business owners will keep plugging away--and serving as the most reliable indicators to where the economy is headed.

Posted by Shannon McRae on August 30, 2006 11:33 AM

Last week, we pointed to a story about business owners who were struggling to survive in New Orleans a year after Hurricane Katrina's devestating blow. Today, a story in the Salt Lake Tribune highlights a different kind of survival: In the weeks following the disaster, these owners packed up their businesses and got out of New Orleans. Though some had plans to return, all of them ended up finding permanent homes for their businesses in new cities.

The panic of the early days is still fresh on their minds. "You think, this can't be happening, when you slip and fall in the grime and you're covered with who knows what, and there's no running water to wash it off with," says Christine MCAtte, owner of Adventures in Adveritising/Insignia Marketing, which is now based in The Woodlands, Texas.

Greg Mangiaracina moved his business, A-Pro Home Inspection Services, to San Antonio, Texas, and hasn't looked back. "I can't put my family through this again," he says.

Relocating wasn't easy, but facing the choice of a city without basic services and sky-high real estate costs, these business owners say they made the only choice they had.

Posted by Shannon McRae on August 28, 2006 03:25 PM

Most small-business owners spend about $10,000 to start their own companies, according to results from a Wells Fargo/Gallup survey announced this week. The poll of 600 business owners found that 73% funded their business with personal savings, while the rest got loans and lines of credit.

Sometimes going into debt to start a business can make sense. For tips on how to know when it's smart to borrow start-up money, check out this recent MyBusiness story.

Posted by Jamie Roberts on August 17, 2006 04:03 PM

With unemployment at a low level, you're probably noticing how hard it is to find skilled and qualified workers. For a small business, hiring a new employee is a huge step. Not only does the person need to fit the job description, she also has to fit into your office. But how do you determine whether a candidate is a good choice? Everyone is on his best behavior during interview.

Small Business Trends blogger Anita Campbell recommends the best questions to ask to dig deeper into the person in your interview chair. If you're bored with the typical "tell me about yourself..." responses, try some of her tips.

Posted by Shannon McRae on August 9, 2006 01:47 PM

Dream of having your product mentioned on Oprah? For some small businesses who lived through a mention on Oprah's Favorite Things, the dream becomes a reality--fast. An article on CNNMoney tracks a few to see what their instant success taught them.

Given just five days notice before its product appeared on the show, Pete Seltzer, CEO of Kashwére, anticipated a challenge. But after a Kashwere robe was mentioned on Oprah's Favorite Things, "for six consecutive weeks we could not get a call out, the phones were hammered and we did thousands and thousands of Internet orders."

MyBusiness tackled a similar topic when we found several businesses who'd spent 15 minutes in the spotlight. Read how fame affected their bottomline.

Posted by Shannon McRae on July 26, 2006 12:08 PM

Last Friday's monthly jobs report from the Labor Department was hardly good news. Analysts expected the new jobs number to be higher. So why are the government numbers so weak when other economic indicators appear positive?

The problem lies in the way we measure it, according to a post today on USA Today's small-business blog. Pointing to comments from TV commentator and blogger Lawrence Kudlow, USA Today asks: "Which of Labor's two employment measures -- the household survey or the payrolls survey -- more accurately measures changes in jobs?"

It's a long-standing debate among those who try to monitor this stuff. Kudlow argues that the smaller household survey captures small-business job creation that the larger payrolls survey misses. But critics take issue with the household survey's methods: Its figures are based off what indviduals report, while the payroll numbers draw from hard data.

Posted by Shannon McRae on July 17, 2006 10:38 AM

This morning, the White House released new figures projecting a much lower deficit than it had predicted just a few months ago. Doesn't that sound like good news? However, when it comes to deficit statistics, no good news is left unanswered. Indeed, spinning statistics for political purposes is an art: For example, in the AP article, the "positive" spin on today's announcement is this: "When measured against the size of the economy — at 2.3 percent of gross domestic product — the 2006 deficit would be lower than the deficits of 17 of the past 25 years." The negative spin: "The 2006 deficit may be lower, but it represents a $600 billion swing from the surplus projected in 2001. And a deficit of $296 billion is still a large deficit. In nominal terms, it's one of the four largest in history." Half full? Half empty? Apparently, it depends on who's looking. Perhaps we can all agree the deficit is heading in the right direction.

Posted by Rex Hammock on July 11, 2006 10:39 AM

According to June's NFIB Small-Business Optimism Index, "pessimism is on the rise among the nation's small-business owners." In the most recent monthly survey, respondents confirmed their views that a slowdown is coming in the second half of the year. Sales-growth expectations declined dramatically. In addition, weaker job-creation plans, declining inventory purchases and fading expansion hopes peeled 1.8 points off the index, which settled at 96.7 (1986=100) for the month. "Although June's sales, profit gains capital spending were solid as May's, that month wasn't very strong," said NFIB Chief Economist William Dunkelberg. "Taking a realistic view of the easing economy, owners are scaling back plans to spend and hire."

Posted by Rex Hammock on July 11, 2006 07:24 AM

Here's one of those topics that gets debated in policy-wonk circles that's fairly obvious to the rest of us: Most new jobs are created by small businesses. Via USA Today's Jim Hopkins comes a link to a .PDF newsletter from the SBA's Office of Advocacy that highlights the job-creation numbers from the most recent year with data, 2003. Writes Jim: "Employer firms with fewer than 500 employees created 1,990,326 net new jobs, whereas large firms with 500 or more employees shed 994,667 net jobs. In other words, small businesses created nearly two million jobs after you subtract those they eliminated. On the other hand, big companies -- defined as those with 500 or more workers -- cut far more jobs than they created."

Posted by Rex Hammock on July 10, 2006 01:26 PM

What will the economy look like for the rest of the year, and what will that mean for small business? It's not going to be as bad as many small-business owners expect, according to NFIB Chief Economist Bill Dunkelberg and Wayne Best, senior vice president of business and economic analysis for Visa, who offered their economic forecast at the recent NFIB National Small-Business Summit. Still, small businesses should brace for a slowdown in the coming months.

Posted by Rex Hammock on July 3, 2006 12:08 PM

eBay's CEO Meg Whitman is joining several hundred small-business owners "taking it to the Hill" today, visiting their lawmakers as part of the NFIB Small-Business Summit. What? eBay is a multi-billion dollar international corporation so what's the company's CEO doing hanging out with a bunch of small-business owners? In an early-morning address to the group, Whitman explained that more than 700,000 eBayers are operating either their primary or part-time businesses through eBay. While she admitted that eBay founders and executives were slow to realize it, eBay has become one of the primary e-commerce platforms for small businesses--"It has leveled the playing field of the Internet," she said. Issues like access to affordable health-insurance coverage and tax simplification are concerns that eBay sellers and NFIB members alike are working on in Congress, so Whitman is here representing eBay's small-business sellers, she explained. (See full coverage of Whitman's address at NFIB.com.)

Posted by Rex Hammock on June 20, 2006 07:22 AM

After being down in March and back up in April, NFIB's Small-Business Optimism Index slipped again in May, down 1.6 points. This suggests the March decline may not have been a fluke, but the beginning of an oscillation in the outlook that is signaling a peak for economic growth. "It's hard to beat the first-quarter performance, so a 'slowdown' is definitely going to happen," said NFIB Chief Economist William Dunkelberg. "The only question is how far and how fast." Triggering the slide were a reduction in job openings, capital spending plans and an increase in the percent of small-business owners who believe business conditions will be worse in six months than they are now. Current economic activity was strong in May, Dunkelberg said, adding that reports of higher sales volumes rose and the share of owners expecting higher volumes was unchanged. Additionally, few signs of problems arranging financing have been found and inflation news, while not improving, was somewhat muted. Stay tuned.

Posted by Rex Hammock on June 13, 2006 05:55 AM

Professor Jeff Cornwall (and Entrepreneurial Mind blogger) notes that jitters regarding inflation are spooking the stock market -- and small business owners. "Many entrepreneurs have never had to do business in an age of inflation. In fact, the last bad inflationary period we had was almost thirty years ago. Since then, careful control of the economy with interest rate policy has helped to keep things in check," he notes. Here is some of his advice for coping with inflation:

Keep overhead low.

Build cash reserves to buffer short term price increases that precede higher prices on your part.

Watch your margins carefully. Worry about growing profits, not sales.

Don't lock into long-term contracts that have narrow margins with large customers.

When inflation heats up even a little, be aggressive with frequent small price increases rather than waiting and trying to catch up at some point with one big jump.

Pay down variable interest loans ASAP. As long as there is inflation, interest rates will keep going up.

Posted by Rex Hammock on June 12, 2006 09:27 PM

The Land of Opportunity provides a pathway to business ownership for many immigrants, according to a Kauffman Foundation study highlighted in this American City Business Journals article. The study found that immigrants are more likely to be entrepreneurs than native-born Americans, an interesting stat to consider regardless of which side of the fence you fall on in the immigration debate.

An article in the current issue of MyBusiness profiles a business owner born in Vietnam who followed her dream of entrepreneurship when she came to the United States at the age of 17. Today, Luna Howard runs a successful salon on Capitol Hill and was even tapped by the First Family to style hair during Bush's most recent inauguration.

Posted by Shannon McRae on June 5, 2006 08:55 AM

Harry Truman is credited with saying he wished for a "one-handed economist" because his economic advisors were always prefacing advice with, "on the one hand...but on the other hand." Apparently, having two hands still comes in "handy" for economists. Today, USA Today includes an article indicating that several statistics point to a sluggish economy in the coming months. However, the story also notes that slow growth may be good as it will discourage the Federal Reserve from continuing its interest-raising pattern. Small business optimism is up, according to NFIB's most recent survey. But on the other hand, a month earlier it was down. Fuel prices are up, but on the other hand, they're moving lower. I guess having two hands is always good for economists: one to hold the glass that is half-full, the other to hold the one that is half-empty. Posted by Rex Hammock on June 1, 2006 10:50 AM

A record $2 billion in disaster loan applications have been approved by the Small Business Administration for the hurricane-devastated Gulf Coast region. Another $685 million in conventional business loans have been delivered to small businesses in affected areas.

"Putting money into the hands of businesses in the Gulf Coast communities remains our top priority," said SBA Administrator Hector V. Barreto. "These businesses are the economic foundation of the region's renewal and spirit, and we are going to stay on the job until it’s done."

For more information on the SBA’s disaster assistance programs, click here.

Posted by Jamie Roberts on May 17, 2006 02:23 PM

Just five votes. That’s how close small-business owners were to real health-insurance reform last week. Unfortunately, the Senate acted as roadblock yet again to Small-Business Health Plans, crucial legislation that would help make health insurance more accessible and affordable to small-business owners and their employees.

In a sometime-confusing procedural vote, SBHP supporters fell just five votes short of the 60 votes needed to invoke cloture, which basically would have cut off debate and allowed the bill to move forward to a vote. Because of the Senate schedule, it is unlikely, although not impossible, that this legislation will come back to the Senate floor again this year, according to NFIB’s President Todd Stottlemyer. Read more of his comments on last week’s vote on NFIB.com.

Despite defeat this time, small-business owners won’t go away quietly. November’s midterm elections are the perfect chance to send packing those senators who didn’t support the much-needed reform. NFIB is mobilizing members of its Political Action Team. Go here to learn how you can get involved.

Posted by Shannon McRae on May 15, 2006 10:00 AM

After an unexpected slump in March's NFIB Small Business Optimism Index, the long-running survey bounced back up more than two points in May. With a return to a range considered historically optimistic, NFIB researchers indicate they believe the March figures were a "fluke." Among the highlights found in the April numbers: Profit trends and sales gains moved to historically high levels, capital spending was strong, inventories appeared lean and labor-market indicators, especially job creation plans, surged to wipe out March declines. One troubling sign: Inflation, "forecasted by a 9-point spike (seasonally adjusted) in the net percent of firms raising average selling prices."

Posted by Rex Hammock on May 9, 2006 08:09 AM

The Christian Science Monitor today reports on an emerging trend in Afghanistan: entrepreneurship among women. Good news out of the Middle East is rare these days, and this article offers hope that conditions are improving for everyone in a country ruled by the oppressive Taliban until just a few years ago. The article points to a report from Microfinance Times that found 75 percent of all active microcredit borrowers in Afghanistan are now women, many of whom use their loans to start businesses.

Like their American counterparts, Afghan small-business owners—and women in particular—are leading the way in rebuilding their country’s shaky economy. Reports indicate some 10,000 women have started businesses in that country during the past few years. “Businesspeople are the ambassadors of peace in the world. If we've got women entrepreneurs, other women will feel that business can help them make a better life. This creates an atmosphere to create a factory or an industry, and brings in investors,” says Suraya Parlika, founder of All Afghan Women’s Union.

Posted by Shannon McRae on May 8, 2006 08:22 AM

Health-care initiatives were the focus of President Bush’s speech to members of the American Hospital Association Wednesday. President Bush has long advocated for Small-Business Health Plans, which allow small firms to join together across state line to buy insurance at the same discounts as larger companies.

The Senate is expected to vote on Small-Business Health Plans in early May. Find the current status on the legislation and ways you can help pass SBHPs on the SBHPs Now! Web site.

Posted by Jamie Roberts on May 3, 2006 01:51 PM

John Mann’s fuel costs have almost doubled in recent months, and the owner of Buffalo, N.Y.-based 1-2-3 Delivery may have to his raise prices to keep up. With 52 delivery vans and three large trucks, Mann, like so many other small-business owners, has been hit hard at the pump.

If you’re worried about absorbing higher fuel costs in your business this summer, it might be time to think about trading in some of your vehicles for cars that get better gas mileage. CNNMoney.com picks the most fuel-efficient cars in five categories. The article also includes easy ways to pinch a few pennies when you’re picking out a new car, like opting for a smaller V-6 engine over a V-8 and passing up the four-wheel or all-wheel drive option.

Posted by Shannon McRae on May 1, 2006 07:16 AM

The New York Times' (registration required) Tuesday edition reports a potential uncomfortable option for travelers: Airlines are looking at new standing-room-only seat designs to maximize profits. Mobissimo has the details on its travel blog.

Incidentally, the competition between travel search engines Mobissimo.com, SideStep.com and Kayak.com is heating up, resulting in even better bargains for business and leisure travelers. Before you book your next trip, check out the travel short in the February/March issue of MyBusiness and in the Web Extras section.

Posted by Jamie Roberts on April 26, 2006 12:28 PM

One-hundred years ago tomorrow, the Great San Francisco Earthquake struck, touching off fires that burned for three days and destroyed more than 500 blocks of the city. Damage was estimated at $8.2 billion by today’s standards.

Small-business owners in this century certainly have witnessed their share of disasters in recent years. Yet a recent study by MasterCard found that the majority of small-business owners don’t believe a natural disaster will affect their business in the next 12 months. You know the old Boy Scout adage: Be prepared. Take a few minutes to check out the Small Business Administration’s disaster preparedness site to make sure you're covered.

Posted by Shannon McRae on April 17, 2006 07:21 AM

With millions of Baby Boomers reaching retirement age, planning for one's financial future is a hot topic these days, prompting a feature in this week's Newsweek. Just this year, a new kind of 401(k) was added to the list of retirement savings options. Small-business owners might consider offering employees the new Roth 401(k), which allows participants to invest with after-tax dollars, which means the tax bill has already been paid on these funds. The new plan isn't for everyone, so see the current issue of MyBusiness for more details.

Posted by Jamie Roberts on April 12, 2006 12:54 PM

Optimism among small-business owners took an unexpected tumble in March. The NFIB Small-Business Optimism Index lost 3.5 points, falling to 98.0 (1986=100), two points below the 30-year average. While profit trends improved, inventory investment and reported sales trends remained strong (virtually unchanged from February), labor market indicators sagged and capital spending plans faded along with weaker expectations for gains in real sales. Declines in job creation plans and job openings accounted for 30 percent of the drop in the index, weaker real sales expectations 40 percent, and the decline in the outlook for overall business conditions contributed 20 percent of the drop. “Although the first quarter will be very strong, something spooked small-business owners in March about the future course of the economy,” said NFIB Chief Economist and MyBusiness columnist William Dunkelberg. “The decline could indicate that owners think the economy is strong, but they don't expect it to get any better, or the economy is weak and they expect growth will slow substantially. The April survey could provide the answer.”

Posted by Rex Hammock on April 11, 2006 07:24 PM

After almost 17 years in the same building, my mom and dad (who own a small business in Alabama) have decided to move to a new office complex that's under contruction in the town where I grew up. It's been so long since they've negotiated a new lease that I'm sure they'll be extra careful and cautious. In the April/May issue of MyBusiness, the NFIB Legal Foundation's Beth Gaudio lays out key points for small-business owners to consider before signing a lease on commercial space. If you're considering new digs for your office any time in the near future, it's a must-read.

Posted by Shannon McRae on April 10, 2006 02:15 PM

This morning, the U.S. Labor Department released the latest snapshot of the U.S. labor market and the picture looks good. Employers boosted payrolls by a sizable 211,000 in March in a springtime hiring burst that pushed the unemployment rate down to 4.7 percent. "The American economy has now added jobs for 31 months in a row," President Bush said. As usual, the report is in line with earlier predictions of NFIB chief economist and MyBusiness columnist Bill Dunkelberg. Here's his take on recent economic news from the current issue of the magazine.

Posted by Rex Hammock on April 7, 2006 07:46 AM

After years of hard work by NFIB members, a Senate vote has finally been scheduled for Small-Business Health Plans in May. SBHPs level the playing field for small-business owners, and a big push is on to encourage your senators to vote in favor of this important legislation. In the current issue of MyBusiness magazine, we profile two small-business owners who are living through the nightmare of escalating health-care costs—and desperately need relief soon.

Posted by Jamie Roberts on April 6, 2006 11:17 AM