Business plans and resume cover letters have a lot in common—they often find their way immediately to the trash.

I had never made this connection until I read this Wall Street Journal article. It's writer, John Mullins, sought out to figure out why so many business plans end up in the trash can after -- or halfway through -- the loan officer or potential investor reads them. He found out that it's because the wannabe business owner made one of five common yet critical mistakes.

In this article, Mullins explains what the traps are and how to avoid them. After reading it, cross-reference his checklist with your business plan to decrease your big idea's chances of meeting the garbage can.

Posted by Lena Anthony on June 29, 2009 01:14 PM

Luckily, I haven't received many reports from readers of MyBusiness about bankruptcy. But I know it's a reality for plenty of businesses out there. That's the bad news. The good news is that bankruptcy doesn't have to be the end of your business. Think you might be on the brink of bankruptcy? This article from the June issue of Inc., offers a straightforward introduction to the steps you'll need to take to prepare and recover from bankruptcy.

The article also offers some clues as to what you need to do if one of your customers or suppliers files bankruptcy. Look for the next issue of MyBusiness for more on this topic.

Posted by Lena Anthony on June 24, 2009 01:44 PM

A new study by the Ewing Marion Kauffman Foundation found that venture capital is not fueling high-growth entrepreneurship. In fact, the study, Right-Sizing the U.S. Venture Capital Industry, made some surprising discoveries—that less than 1 percent of the 600,000 new employer businesses created each year are backed by venture capital and that only 16 percent of the businesses on the Inc. 500 list (the fastest growing private companies in the country) receive venture capital backing.

The study also found that the industry, in order to survive, will need to shrink in size but expand in terms of the types of businesses it supports.

So what does this mean to you? Well, two things: That you don't necessarily need venture capitalists, but if you do, they might be interested in learning more about your business.

Posted by Lena Anthony on June 10, 2009 02:50 PM

With the economy in the tank, you might think that this is a bad time to try to sell your business. And you're probably right, according to a report by BizBuySell.com, which shows a decline in business-for-sale transactions and valuations. Not only are buyers hesitant to pay typical asking prices, they're having a harder time accessing capital for business purchases. But the good news? While it might be more difficult to close a deal these days, business brokers are reporting a record number of buyer inquiries, due to the large number of people laid off by corporations in the last few months. Many of these workers are now considering entrepreneurship as an alternative to the typical job search. So if you're thinking of selling now or in the near future, what can you do to reach the best buyers and land the best deal? Check out this Entrepreneur.com article on MSN for tips on how to get your business ready.

Posted by Emily McMackin on May 14, 2009 04:16 PM

So you finally got the courage to go to the bank and ask for a loan to help you to meet payroll, buy supplies, or just pay your monthly rent and overhead. You put your pride on the table—and the only thing you left with was rejection. Now what? Should you just throw up your hands and let your business be consumed by the dynamics of a down economy? With banks tightening credit and saying no to loans they would have approved before, many small business owners are turning to microlenders to help them ride out the tough economic times, says a recent New York Times article.

Microlending used to be a resource limited mostly to women, low-income or minority entrepreneurs, but that's changing, says Marvin Bryant, chief executive of the Atlanta Micro Fund. Bryant told the Times that he's seeing more inquiries from established businesses, especially since entrepreneurs can no longer rely on a home equity line of credit to get through a cash crunch. In fact, many of the banks who are rejecting small businesses owners for loans are referring them to microlenders. The economic stimulus package approved last month allocated $30 million to the Small Business Administration's microloan program, a resource many of these community-based nonprofit lenders draw on for financing.

Read on for personal stories of how small business owners are using these microloans—and how they're finding ways to grow and expand their businesses in spite of the bleak economy.

Posted by Emily McMackin on March 12, 2009 03:37 PM

In today's volatile lending market, taking money from any old investor might seem like the only option for funding your business--but that doesn't mean it's always a great idea. For many entrepreneurs, complying with investors means sacrificing core components of their business plan. Are you prepared to fire your chief financial officer? Or move your headquarters to another city? How about replacing your product lines? If those sound like sacrifices you can't make, you might want to be careful about the strings that can be attached to securing financing through private investors, says this New York Times article.

“Often the investor’s advice isn’t the right advice; maybe it’s not fully informed,” said Winston J. Churchill, managing partner at SCP Partners, a private equity firm based near Philadelphia, in the article. “An entrepreneur has to be very careful from whom they take money, and what the person’s experience is.”

Ready to take on an investor? Check out the article to learn more before you sign a contract.

Posted by Megan Pacella on February 10, 2009 03:05 PM

Chances are, you're struggling to figure out how to get customers to pay their invoices faster. Customers are paying their invoices later and later these days. Business is slower for them, which means they're slower to pay you.

But what can you do? Push them too hard and you may never hear from them again. Hire an attorney to collect and you might spend much more than it's worth, explains this Wall Street Journal article published on smSmallBiz.com.

Instead, be sensitive, realistic and cooperative—and turn on the charm, say the experts quoted in the article.

Posted by Lena Anthony on January 26, 2009 11:33 AM

Hopefully none of you readers out there need this advice, but if you do (or if you know of another small business owners who is facing foreclosure), check out this article from the Wall Street Journal ASAP. It offers some practical tips in the face of foreclosure and describes ways to delay the process.

Commonsense tips include notifying the bank early on about your problems and, above all, being cooperative—the bank, its attorneys (and yours) will be more likely to work out a deal for you if you are easy to work with.

Posted by Lena Anthony on December 10, 2008 04:41 PM

As energy costs have skyrocketed over the past year, your gas bill isn't the only one taking a hit—have you noticed how much you're paying for shipping these days? If raising prices to offset the higher shipping costs isn't an option for your small business, don't despair—just read this Wall Street Journal article.

The article tackles the shipping cost conundrum head on, offering eight suggestions to lower costs. Some of the ideas (like shopping around or finding a ) can be implemented before you seal your next box; others will take a little more work, and in some cases money. Whether you implement one or all of these tips, prepare yourself for this: Your next shipping bill will be lower. See, not all warnings are bad.

Posted by Lena Anthony on September 22, 2008 03:11 PM

The current issue of MyBusiness includes an article on how business owners are bracing for an economic downturn. In the article, small business owner Mark Anderson says something that everyone should pay attention to: "When you see business flowing in regularly, you tend to get a little lazy."

In other words, when business is booming, you might have a tendency to loosen up on keeping expenses in check. Or, you might purchase more inventory than you can handle.

The MyBusiness article offers some of the same tips as in this Smart Money article on controling your cash flow. No matter where your business stands in this economic slump, implement some or all of the ideas to stay ahead of the curve.

Posted by Lena Anthony on August 22, 2008 03:29 PM

One of my friends is an attorney at a law firm that hands out bonuses each quarter—if the firm meets the revenue goal. Eager to meet that goal, someone at the firm proposed offering a 5 percent discount on the invoices if payment was received by a certain date.

Now, I never heard if they actually did this or not (I haven't followed up with my friend), but when I heard the idea, I thought, "What a great idea!" Perhaps a bad precedent to start with your customers, but a creative solution to a problem nevertheless!

Here are some more great ideas from the New York Times to help ensure you get paid on time.

Posted by Lena Anthony on June 11, 2008 03:56 PM

Unless you live in Timbuktu, you've probably heard about the government's crackdown on the hiring of illegal immigrants in U.S. businesses.

The latest effort in this direction is the Department of Homeland Security's proposed no-match rule, which would require businesses to fire employees if there isn't a match between their name and Social Security number. After the rule was challenged in federal court, the government revised the proposal to offer a safe-harbor to businesses that follow the procedures.

So, what's all this legislation costing employers? A U.S. News & World Report brief points to a Chamber of Commerce study for that answer. In the study, a former Office of Management Budget economist estimates that these proposed rules could cost businesses an estimated 1 billion a year.

To learn more about how immigration affects your business or how you can get involved in the debate, visit the immigration issues section of www.NFIB.com.

Posted by Emily McMackin on April 25, 2008 03:42 PM

Is the economic slowdown squeezing your bottom line? If so, you're not alone. Everyone is feeling the pinch these days. If you're like most business owners, you're looking for a way to cut costs. A word of advice from the University of Wisconsin School of Business: Stay away from personnel. Sure, it might be the most obvious place to free up some money, but slashing paychecks will cost you dearly, according to a U.S. News & World Report brief on the Wisconsin business school's research.

The report, which was originally published in the Academy of Management Journal, studied the downsizing and turnover rates of 200 companies, finding that, when a company lays off workers, it often experiences an exodus of even more employees. By downsizing its workforce by 5 percent, a company was likely to experience an average 14.9 percent turnover rate, compared with 10.4 percent at companies that didn't cut staff. So, if you're facing tough times ahead, remember: Putting employees before profits will keep morale high and pay off down the road.

Posted by Emily McMackin on April 11, 2008 04:03 PM

Collecting bills is just one of the necessary evils that comes with being a small business owner--but sometimes you have to get your hands dirty in order to protect your bottom line. If you're nervous about confronting your customers, this Wall Street Journal article offers the advice you need to make a successful collection call, including:

Identify yourself. Specify who you are and from where you're calling to eliminate any confusion from the get-go.

Ask for the payment in full. The best way to get the full payment is to ask for it at the beginning of the conversation. You might have to negotiate later on, but this will ensure that you're putting the highest amount possible back into the company checkbook.

Identify the problem. If your customer is having financial problems, identify them right away and work out a plan to help them pay off their bill in a reasonable amount of time.

Posted by Megan Pacella on March 20, 2008 02:43 PM

Taxes aren't much fun--or even remotely interesting--for most people, but putting them off until the last minute can leave you in a pinch, according to this recent Tools and Tips article on NFIB.com. Though you're probably already pushed to the limit with your free time, the article cautions against waiting until April to contact your accountant, who is most likely swamped this time of year and might not be able to fit you in before Tax Day. And, the article advises, if you practice "shoebox accounting" in your business (where you throw all of your receipts in a shoebox until it's tax time), make an appointment now. And then do everyone a favor and invest in a filing system for next year.

Posted by Megan Goodchild on March 18, 2008 01:11 PM

Not sure what it's like where you live, but everywhere I turn there seems to be a new bank opening. And not just branches of existing banks, but brand new, independent banks.

More power to them. But how are you supposed to know which bank to choose when there are at least a dozen choices? Take a look at today's Tools and Tips article on NFIB.com to help you decide.

Posted by Lena Anthony on February 8, 2008 07:28 PM

I talked to a small-business owner this week who was explaining to me why he had such a hard time finding qualified workers in his region. Turns out, the place where he lived, Billings, Mont., has one of the lowest unemployment rates in the nation.

I asked him if he ever considered moving his business, and it didn't take long to gather that relocating would never be an option for the longtime Montana resident who wanted to stay close to home, family and friends. But some business owners, like the ones in the Wall Street Journal article, can easily say good-bye to the place they call home and head for greener business pastures.

It may sound crazy, but for the owners of Industrial Motion Inc., moving cross-country from high-rent, high-wage California to Mooresville, N.C., just made plain business sense.

Same went for Rod Pera, who we featured back in our December/January 2007 issue. Pera, though, moved his business twice, once from Los Angeles to Portland, Ore., and then from Portland to Austin, Texas.

So what's the secret to make it successful: "Honestly, it was just confidence in my services, knowing that they would be needed in the new location just as much as they had been in the first one," Pera explained.

Posted by Lena Anthony on January 16, 2008 12:01 PM

When a conference call won't do, business travel is a must. But if you're not paying attention (and have to purchase a last-minute flight, for example), what you spend on traveling can really add up.

This SmartMoney article offers tips on reining in business travel expenses. With planning, it says, and taking advantage of business travel deductions, you can make any business trip worth your while.

Posted by Lena Anthony on November 14, 2007 01:32 PM

The end of the year is near, so if you've been thinking about upgrading your equipment or buying something totally new, now is the perfect time to do it.

Today's NFIB.com Tools and Tips column gives advice on investing in equipment now so you can deduct the purchase from your taxes.

Posted by Lena Anthony on November 8, 2007 02:38 PM

Running a business on a shoestring budget can be tough, but there are some easy steps you can take to help your bottom line. Today's Tools and Tips article on NFIB.com offers five ways to save money in your small business, including:

• Make your office energy efficient. Install a smart thermostat to heat or cool your business only when you need to, and replace incandescent light bulbs with compact florescent lights, which can save you approximately $30 or more on energy costs per bulb.


• Hire interns. College interns can be great assets to your business, since they are eager to get valuable experience in their field of study--paid or not. While interns must receive something in return for their work, a stipend or academic credit is often acceptable. But be careful what tasks you give them--you can't just use them to make coffee and photocopies.


• Cut back on outsourcing. Consider eliminating services like couriers, travel agents and office cleaning or landscaping crews if you and your employees can tackle the jobs.

Find out more easy ways to save cash at NFIB.com.

Posted by Megan Goodchild on October 11, 2007 02:46 PM

If you’re like most people I know, you rarely spend a dime of your hard-earned cash on anything that’s not discounted. And why should you treat your business’ bank account any differently? According to the Small Business Administration’s Office of Advocacy, most businesses fail because they lack capital, and in 2005, 10 percent of U.S. small businesses closed their doors for good. Just a few simple measures can help you save, and if you know where to look, you’ll have no trouble increasing your cash flow.

Fortunately, there are a number of ways to save money and help ensure the success of your business. Check out Colleen DeBiase’s article for smartmoney.com to learn more about programs and vendors that can help you cut costs in no time.

Posted by Megan Pacella on August 21, 2007 01:27 PM

The Startup Journal has a warning for small-business owners: the credit crunch currently plaguing consumers and big corporations is about to encroach on small business. Worried about the prospect of small businesses defaulting on loans, banks will begin to tighten their purse strings on small-business loans, which can wreak havoc for a small business in a cash crunch.

There are ways small businesses can prepare, the article says, including "picking a bank that caters to their situation, keeping detailed financial records and being prepared to put up personal assets like homes as collateral, can make a big difference for young companies seeking funding."

Posted by Lena Anthony on August 8, 2007 02:39 PM

Hiring a lawyer or an accountant to assist you in your business is serious business. That's why it's important to hire someone who's not only experienced enough to do the job, but also fits well with the company, writes Joyce Rosenberg in a recent Associated Press article in the Salt Lake Tribune. The article offers tips for owners making this decision, a few of which include:

•If you get the name of accountants or lawyers through networking or referrals, be sure to interview them (and their clients) before putting them on the payroll. While a good recommendation means a lot, background checks and chemistry is also crucial.

•Ask yourself: Is this the right person to suit your needs? Make sure that the professional has experience in your industry and has worked with businesses your size.

•Know how much you will be charged. It's crucial to discuss fees and what services you can expect. You don't want to open a bill down the road and discover that you have to pay for the shortest of phone calls.

Posted by Emily McMackin on August 3, 2007 10:57 AM

Retirement planning is never easy, especially if it's up to just you to work out all of the details for your employees. If you might be thinking that a 401(k) plan isn't the best fit for your business, take a look at this recent Tools & Tips column on NFIB.com, which discusses whether a 412(i), which combines pension payouts and life-insurance protection, could be a good choice instead.

Some of the plan's pros include:

• Funded exclusively by individual annuities or a combination of annuities and life-insurance contracts


• Can provide fixed, known monthly retirement benefits, life-insurance protection and, relative to other plans, large tax-deductible contributions (in excess of $300,000) that can build a substantial retirement fund in just a few years


• Any business, whether C Corporation, S Corporation, partnership or sole proprietorship, can establish a 412(i) plan

And some potential cons include:

• Because of the large contribution levels, 412(i) plans are not for struggling companies


• Unlike some other pension plans, loans against 412(i) funds are not allowed


• There is no investment flexibility. By law, a 412(i) must be funded entirely with insurance and annuity contracts

Posted by Megan Goodchild on July 13, 2007 09:23 AM

April is many months away, but that doesn't mean that you shouldn't already be thinking about taxes. Summer is the perfect time to take stock of where your company stands financially and decide about equipment purchases and other capital spending for the rest of the year, according to an Associated Press article published recently in the Houston Chronicle. If you're losing money, you need to know now so you can make changes; if the profits are rolling in, you need to start thinking about your options (do you withdraw money or leave it in the business to fund growth?).

Summer is also a good time to switch to accounting software or experiment with a new accounting program as well as meet with an accountant or financial adviser, since their business tends to be slower this time of year. Save yourself a headache later and get a jump on preparing for taxes now by checking out our Manual, The Essential Guide to Taxes, in our Feb./March issue.

Posted by Emily McMackin on July 6, 2007 10:42 AM

Are you a veteran, reservist or National Guard member who wants to start or grow your business? If so, you're in luck. This week, the Small Business Administration announced a new lending program, the Patriot Express Program, designed to aid small-business owners in the military community.

The loans, which feature the SBA's lowest interest rates for business loans, can be used to start or expand a business, purchase equipment, provide working capital, fund inventory or purchase office space. In a Washington Post article, SBA Administrator Steven Preston said that the program was formed to provide veterans with access to capital they wouldn't qualify for otherwise through traditional programs.

"Generally, through our research, we've found that veterans make good business owners and the degree of business ownership among veterans is higher than other demographics," Preston said in the article. "They come out [of the military] well-trained. They come out disciplined, and we want to make sure that every opportunity is available to them to start a business."

Posted by Emily McMackin on June 15, 2007 12:56 PM

On May 25, President George W. Bush signed the Fair Minimum Wage Act of 2007 into law, raising the minimum wage of $5.15 per hour to $7.25 per hour by July 2009. The increase will occur in three phases:

1. Beginning July 23, 2007, the minimum wage will be $5.85 per hour


2. Beginning July 23, 2008, the minimum wage will be $6.55 per hour


3. Beginning July 23, 2009, the minimum wage will be $7.25 per hour

Many states have minimum-wage laws that differ from the federal law, but employees must be paid the higher of the differing wages. Read today's Tools & Tips on NFIB.com for more information on the new federal minimum-wage law, including exceptions.

Posted by Megan Goodchild on May 31, 2007 09:25 AM

When you're your own boss, how much do you pay yourself? The New York Times, in an article published online today, found this to be a difficult question for entrepreneurs, especially those just starting up a business. Robert Chelle, director of the Crotty Center for Entrepreneurial Leadership at the University of Dayton, tells the Times that "people who start small businesses should not expect any money that first year" unless, of course, they obtain venture capital or start making money right away. Andrew Corbett, professor of entrepreneurship and strategic management at the Lally School of Management and Technology in Troy, N.Y., says that once your business has started to make money, you can figure out what to pay yourself. Corbett discusses with the Times a formula he's created for determining a small-business owner's salary---a formula that suggests paying yourself about 50 percent more than what you'd make working for someone else.

Posted by Megan Goodchild on March 22, 2007 12:59 PM

This article in the current issue of MyBusiness features small-business owners who had experienced enormous business growth and had dealt successfully with the challenges of growing your business. A common challenge was balancing the size of their staff with the size of their office space. They'd love to hire—or in the case of Midtown Yoga owner Sarla Nichols, would love to offer more yoga classes—but where would they put them?

They had to find new spaces. Nichols, fortuitously, was able to rent out the space next to her current studio, and others moved offices entirely, upgrading their space by several thousand square feet.

But for other business owners, like the ones featured in this Business Week article, growing your business doesn't have to be synonymous with moving into bigger, better spaces. It's not for everyone, but this article shows that you can buy your own space, continue to grow your business and reap a whole lot of benefits.

Posted by Lena Anthony on March 19, 2007 11:31 AM

Have you found something green to wear for St. Patrick's Day yet? If your workplace is full of proud Irish descendents like ours, you're likely to see a sea of green outfits in the office when March 17 rolls around. Going green isn't something small businesses should reserve only for St. Patrick's day, says columnist Rhonda Abrams in a USA Today column. Being environmentally conscious can also help you see green in your budget, Abrams says. A few energy-saving actions you can take right now include:

•Open the windows or doors. If you do this in the mornings once the weather turns warm, you might be able to avoid using air conditioning the rest of the day.
•Recycle or find innovative uses for excess inventory or waste. If your business generates lots of waste, brainstorm with employees about how to turn your trash into something useful. Donate what you can't recycle to a nonprofit agency, for instance.
•Conduct more of your business online. Save fuel by transferring funds to your bank online or sending a document to a client via e-mail instead of through a courier.

Want to know more about how being environmentally friendly can boost your business? Check out an Idea Network article in our Feb./March 2006 issue about a lumber company owner who grew his business this way.

Posted by Emily McMackin on March 14, 2007 10:15 AM

Tax season can be stressful for anyone, but nobody knows the demands of compiling records and poring over the books like a small-business owner. Without a dedicated finance or bookkeeping department, most small-business owners end up having to do the tax prep-work themselves—a task that a recent AP article on MSNBC.com says often is set aside until tax day is approaching.

Instead of thinking of taxes as a once-a-year event, the article says, small-business owners should integrate tax work into their regular operating routine to ease the pain of last-minute preparation. If getting your books organized—and keeping them that way—seems too daunting, the article recommends delegating the task. And though hiring the job out can sound expensive, it could save you lots of time—and money—in the long run.

For more helpful tax-time hints, visit the 2006 Tax Resources section of NFIB.com.

Posted by Megan Goodchild on March 8, 2007 09:21 AM

Just in time for tax-filing season, the IRS has released its dirty dozen list of the most blatant scams affecting American taxpayers. Most of the false information comes from scam artists who peddle the schemes by phone, but the IRS also warns taxpayers to be weary of tax preparers who promise inflated returns.

Topping this year's list is abuse of the telephone excise tax, a one-time refund of previously paid long-distance telephone taxes. Early returns show that some filers are requesting refunds on their entire phone bills rather than the 3 percent tax. Find more information on how to determine your telephone excise tax refund on NFIB.com.

Posted by Shannon McRae on February 28, 2007 09:13 AM

I'm pretty good at spending money, especially when I travel. I'll get a wad cash from the ATM before hitting the road, and by the time I'm ready to make the return trip back home, I've usually blown right through it. If you travel frequently for business or pleasure, you can't afford to let this happen to you.

If you're like me, and your wallet is as empty as your gas tank at the end of a trip, you might want to check out a recent Foder's Travel Wire article about eight ways to waste money on the road. Some of the money-wasters are obvious, such as eating in pricey restaurants, ignoring budget contraints and traveling during a high tourist season. Others are more inconspicuous—not knowing your destination, not reading the fine print on your credit card, avoiding hotel Web sites, not considering alternatives to hotels and renting cars instead of using trains and buses. Keep a few of these in mind the next time you're on the road, and maybe you'll end up with a few leftover dollars at the end of a trip.

Posted by Emily McMackin on February 16, 2007 09:18 AM

How important is pay to employees? Very important, according to a new study published in the Quarterly Journal of Economics and conducted by the Haas School of Business at the University of California–Berkeley.

The study, which examined how money awarded in abitration proceedings affected the performance of police officers, found that employees work more when they're paid more and less when they're paid less. The primary lesson in this for business owners is that "managing expectations is important," said the study's author Alexandre Has in a U.S. News & World Report article summerizing the findings.

Want to know how to determine if you're paying enough to attract and keep the best employees? Check out our "Pay What?" article in the Upfront section of the current issue of MyBusiness.

Posted by Emily McMackin on January 19, 2007 12:54 PM

Tired of the deluge of credit-card solicitations that you get in the mail and on the phone? It's not likely to stop anytime soon. With growth in the small-business sector, credit-card marketers are shifting their focus to entrepreneurs, according to a USA Today article. Several of the big credit-card companies have new programs aimed specifically at small-business owners, so how do you find the best deal? The article suggests a few things to look for:

•Since you may need to carry a high balance on your card when expenses rise and revenue slumps, look for a card with a fixed rate. Make sure that the rate is guaranteed for at least a year; don't be lured by a low teaser rate that could jump sky-high in a matter of months.

•Read the fine print on rebate offers. If you carry a high balance, they may not save you much.

•If you order products from other countries, pay attention to foreign exchange rates.

•Make sure that your card doesn't have a universal default that can raise your interest rate by as much as 30 percent when you make late payments to other creditors.

Posted by Emily McMackin on November 17, 2006 09:23 AM

What does the national decline in real estate have to do with your small business? A lot more than you might think, says business strategist Rhonda Abrams in a USA Today column.

In September, the Commerce Department reported that the median price for a new home had dropped by 9 percent from last year's figures, the biggest plunge since 1970. New home construction is also declining, according to the Commerce Department.

This means that it will be more difficult to borrow against home equity, which small-business owners often do to finance start-ups and expansions. With home equity falling, consumers will also be less inclined to spend money on products and services or use home equity loans to pay for remodeling projects.

Check out Abrams' column for financial precautions you can take to prepare for the home equity fallout and its effect on the economy.

Posted by Emily McMackin on November 3, 2006 03:02 PM

Is the other 25 percent really telling the truth? That's the first thing I thought when I saw this new Gallup poll that found 75 percent of American workers say they'd be happier if they made more money--exactly $33,000 more, according to the study. So what about the other 25 percent? Are there really employees out there who would say they wouldn't be just the slightest bit pleased with more money?

One of the study's more comforting finds for small-business owners: Though they might want more money, 63 percent of employees don't think they'd be happier in a different job. A more positive way to look at that stat? Employees are pretty satisfied. NFIB.com's Business Toolbox has an entire section on how to motivate and inspire employees. Check out the articles for ideas on how to maintain a happy (and productive) staff. And if the survey offers any insight into your workers, might as well browse the Business Toolbox category on employee compensation too.

Posted by Shannon McRae on August 7, 2006 11:02 AM

According to a poll released yesterday by the NFIB Research Foundation, banks are increasing their competition for small-business accounts. This is the second banking-related poll released by NFIB this summer.

The poll shows that while slightly more than 40 percent of the small-business owners surveyed have seen an increase in banks courting their business, only one in 10 has switched principal banks in the last three years.

Banks are going to have to continue to step up the competition, as 70 percent of small-business owners said they were sticking with their current institution because they were satisfied with it. Jeff Cornwall at the Entrepreneurial Mind cautions "hungry young commercial loan officers" that small-business owners don't like to change banks as "it is disruptive and a hassle, and can be expensive if there are loans involved."

Posted by Megan Goodchild on July 27, 2006 10:11 AM

What's your first reaction when employees ask to take vacation? Admit it, doesn't a little bit of you wish they wouldn't go, leaving you and other employees to do their work? In small businesses, fluff doesn't exist. Every person is important and needed every day.

But a story in the Triangle Business Journal proves once again that time off is good for us all--business owners and employees alike. At the Raleigh, N.C.-based accounting firm Hughes Pittman & Gupton, accountants work 10 percent to 20 percent fewer billable hours than at a typical large firm. Though that might make most bean counters gasp, these owners have a different approach: Cultivating a positive work environment is good for the bottomline. With 15 to 20 percent revenue growth rate over the past few years, the numbers add up.

As we enter the last month of summer, make sure everyone in your office (including yourself) feels comfortable enough to hit the beach for a long weekend. The results will be worth it.

Posted by Shannon McRae on July 24, 2006 05:34 PM

Business travel can be fun, except when you have to pay for it. So how do you do it without slicing your bottom line? In a four-part "Small-Business Travel Guide" series, Forbes Magazine offers small-business owners tips on how to land flight and hotel discounts as well as advice on how to conduct business on the road without spending a fortune. Some suggestions include:
•Skip a cab and take the subway or use the complimentary car service at the hotel.
•Bypass the hotel's business center and find a Kinko's. It comes down 99 cents a page versus $3.
•If you are traveling overseas and need to learn a foreign language, invest in audio tapes instead of a language class or a tutor.

Posted by Emily McMackin on July 7, 2006 09:18 AM

Each year, numerous consumers and small-business owners discover that the insurance policies they have purchased are not legitimate, and are then left with thousands of dollars to pay out of pocket. Insurance scams are quite common, and today's Tools & Tips column on NFIB.com details how to recognize and avoid a scam. Advice includes:

• Stop before signing anything or writing a check


• Call the Office of the Commissioner of Insurance in your state


• Confirm the broker is legitimate and licensed to do business in the state


• Work with an organization like NFIB that researches insurance offers before making them available to members

Posted by Megan Goodchild on June 29, 2006 08:02 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

Having trouble securing a loan to fund your small business? Found a credit card that offers a low interest rate? Though less conventional and potentially more dangerous, credit cards often can provide the short-term help you're looking for.

The current issue of MyBusiness Magazine offers some tips to consider when you've decided to use a credit card rather than a traditional business loan to fund your small business:

1. Have a plan. Before considering credit cards as a funding option, make sure you have a detailed business plan, including how you will generate enough revenue and cash flow to pay back the debt.


2. Shop around. Compare the fine print on a variety of cards before deciding on one.


3. Be disciplined. Because interest rates and fees quickly can get out of hand if you miss a payment, make paying off your balance a top priority.

Posted by Megan Goodchild on May 2, 2006 10:02 AM

As summer approaches, high-school and college students will be taking a break from the books. Why not put them to work in your small business? Whether you're planning to hire your next door neighbor's child or your own, there are rules that limit the number of hours and the type of job teenagers can work. The Department of Labor created YouthRules!, a Web site full of resources, tips and frequently asked questions to keep employers straight. The rules aren't too complicated, but penalties for breaking them are substantial. The time students spend in your small business might inspire them to start businesses themselves one day. Help teenagers you know get a jump on business ownership by introducing them to the NFIB Young Entrepreneur Foundation scholarship awards program, created to help fuel the future of America's free enterprise system.

Posted by Shannon McRae on April 24, 2006 07:08 AM

Need to borrow money for your business, but can't get a loan? Turning to relatives for help should be your last resort, according to a recent article in Business Week. Borrowing from family can spark tension, and business owners who choose this route must carefully consider the repercussions, the article states. But what if you have no other choice? Check out the Manual in the April/May issue of MyBusiness for tips on how to keep the peace and avoid problems when getting funding from relatives.

Posted by Emily McMackin on April 21, 2006 08:20 AM

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

How do you plan to spend your tax refund this year? If you're like some business owners, you won't be keeping it for long. The Memphis Business Journal reports that most business owners plan to use their refund to pay down debt, according to a recent survey. Other highlights of the study, which surveyed 436 small-business owners, include:

53 percent will use a refund to pay down debt, while 30 percent will save the money.

54 percent will buy only what they must in the next 12 months.

44 percent believe they've become more practical about purchases this year.

28 percent intend to pay with cash more often, rather than credit.

Posted by Emily McMackin on April 7, 2006 09:09 AM