By James Pruitt, Senior Staff Writer

1. Emergence of Generation Z

These days, when we speak about young people, we increasingly refer to “Generation Z” rather than “Millennials.” Most news sources place “Generation Z” as born before “1995 – 2012.” Millennials are generally categorized as between 1981 and 1994. Generation Z has never known a world without the internet. They also grew up with smartphones and touchscreens.

Marketing to Generation Z is a work in progress, but businesses should emphasize social issues. This generation saw paradigm shifts in the way Americans relate politically, socially, and morally. The emergence of social media lurks deeper in younger peoples’ consciousness, although people in this age group certainly value face-to-face interaction. Politics changed, social life changed, and morality changed. Much went on-line. Mindfulness of these shifting trends is key to determining relations with this emerging group of people and how market to them.

2. Wellness Issues

No one expected the events of 2020. The coronavirus epidemic has redefined the importance of self-care. Definitions of “social distancing” during the coronavirus epidemic develop rapidly. Considerations such as masks and social distancing have proven serious. A pandemic-era business must think long and hard about coronavirus-related issues.  Businesses have had to re-invent themselves within this new normal and many are embracing working remotely too.

However, emphasis on health and well-being in the workplace had been increasing for years before the current pandemic. Employers have increasingly prioritized self-care not just for the past year, but also for the past few decades. Relevant and sometimes tricky issues can involve increased awareness of mental health issues and their role when determining sick leave and relations with management. Also, technological advances such as cochlear implants continue to increase opportunities for people with audial, visual, physical, and other disabilities.

The ADA (Americans with Disabilities Act) forbids discrimination based on disability or perceived disability unless that disability relates to the job.

3. Continuing Digitalization of the Economy

Managing your company’s internal cyber-affairs has certainly assumed new importance since the Information Age started. Employers can now carefully monitor the actions of their employees. For example, employers can monitor their employees’ activities and plan meetings or other activities accordingly.

On a related note, cybersecurity as a field has exploded since the first days of the internet. No shortage of scammers, hackers, and other imposters may haunt your computer systems despite the best firewall.

4. Mobile Devices are Increasingly Relevant in Business

Mobile devices are a relatively new yet versatile addition to the business scene. Bosses may contact on-call workers far more efficiently than in previous decades.

Another use for mobile devices is “geo-tracking,” which permits advertisers to target customers geographically close to their business. Another solution is to develop an app that shares promotions with interested customers.

5. Monetary Transactions Become Increasingly Electronic

The trend continues. We are in fact moving toward an increasingly cashless society. The pandemic will likely greatly increase this trend. Small businesses should consider a wide variety of options for customer payment. However, it is notable that cash-free businesses remain controversial. For example, New York City passed a bill in January to make such businesses illegal

VAMBOA, the Veterans and Military Business Owners Association is pleased to announce that James Pruitt will be contributing articles to our blog as a Senior Staff Writer.  James Pruitt is an independent copywriter and editor specializing in legal and health-related issues. He received his master’s from the University of Chicago and his bachelor’s from UC Berkeley. He currently resides in Thousand Oaks, where he pursues his passions in gardening, cooking, and spoiling his mixed Maine Coon cat, Russell.

By:  James Pruitt, Senior Staff Writer

Types of Incorporation

Small businesses may incorporate as corporations or LLCs as well as partnerships. The first two formats shield owners personally from various liabilities. Hence, in case of debts or lawsuits, the owner’s personal assets remain behind the “corporate veil,” generally not reachable by creditors.

Limited liability companies (LLCs) offer the tax advantages and flexibility available to partnerships. Corporations differ from LLCs in the issuance of stock. Also, corporations issue by-laws that govern their management and govern the interactions of shareholders, directors, and officers.

Relationships with their home state govern corporations. Contract (and agency) law governs partnerships. Choosing between these methods of small business formation is the first step in availing yourself of the benefits of formal recognition.

Reasons to Incorporate

Benefits of small business incorporation include (1) name protection; (2) tax flexibility; (3) perpetual existence; (4) personal asset protection; (5) deductible expenses; (6) nationwide availability; (7) and not least importantly, additional credibility.

First, as for name protection, incorporation provides exclusive access to your business name. Second, tax flexibility grants the legal advantages of the most fitting taxation scheme. Third, the small business will exist perpetually and assume an identity independent from the owners. Fourth, the assets of the business will belong to the business itself rather than the owners. Fifth, incorporation allows a process for deducting business expenses before allocating income to the owners of the business. Sixth, the business will go on the records nationwide in all jurisdictions under the relevant name. Seventh, the plain fact of credibility offers opportunities for expansion.

Where to Incorporate

Incorporated businesses must file annual reports in any state where they register or do business.

Owners usually incorporate in their home state. While large corporations sometimes avail themselves of outside states (most commonly Delaware), for a small business, incorporating locally saves time and effort.

Taxation

Different corporate tax entities can include C corporations and S corporations, in addition to LLCs and partnerships. ”C corporations” file the IRS form 1120. “S corporations” qualify for “pass through” taxation, which taxes the owners themselves for the profits of the corporation without involving corporate income tax. In other words, “S corporations” escape the double tax liability typical of “C corporations.”  “S corporations” cannot have more than 100 shareholders. An accountant or lawyer can advise the best options.

LLCs, or limited liability companies, are also subject to the same type of “pass-through” taxation. The distinction between the three types of tax entities lies in the nature of the ownership of the company, with “C corporations” generally issuing shares to large numbers of owners.

How to Incorporate

Next, choose a business structure. Options include C-class corporations, S-class corporations, or LLCs. The best option really depends on the size and ownership of the organization. Smaller organizations with limited ownership may better fit with an S-type or LLC structure. Partnerships depend on contract law, hence agreements between business owners rather than with the state.

Articles of Incorporation

C or S type corporations should have Articles of Incorporation, filed with the local Department of State. These articles determine the scope of the company and the structure of the ownership. Such a company could have a Board of Directors. Such corporations may issue public or private stock to foster growth.

Small business owners who choose the C or S corporation route should not confuse articles of incorporation with bylaws, which are rules governing the day-to-day running of the company. Both articles of incorporation and bylaws are generally filed with the relevant office of the Secretary of State.

Should a small business owner choose to incorporate as a partnership, they need not file documents with the state. An LLC, on the other hand, should file “articles of organization.”

After Incorporation

Employers generally apply separately for an employer identification number, for employee entitlements such as unemployment. Next, one should obtain any necessary business licenses and permits. Finally, after the actual incorporation, the owners of a new business should draft bylaws and operating agreements to govern the day-to-day functioning and scope of business operations,

Incorporation v. Partnership

Legally, state governments control the status of corporations. Contract law between business owners governs partnerships. A limited liability corporation (LLC) may opt to file the paperwork for treatment as a separate entity from the owners. Hence, the owners may protect their assets in debt collection. In conclusion, the best choice between a C or S corporation, partnership, or LLC depends on a variety of factors, including the number of owners, their status, the relationships of each owner, and plans for the future and scope of the company.

VAMBOA, the Veterans and Military Business Owners Association is pleased to announce that James Pruitt will be contributing articles to our blog as a Senior Staff Writer.  James Pruitt is an independent copywriter and editor specializing in legal and health-related issues. He received his master’s from the University of Chicago and his bachelor’s from UC Berkeley. He currently resides in Thousand Oaks, where he pursues his passions in gardening, cooking, and spoiling his mixed Maine Coon cat, Russell.

By Debbie Gregory.

If you need to raise money for your small business, there are several viable options available that are not your traditional bank loans.  One good one is Crowdfunding.    Crowdfunding easily allows a diverse set of people to invest in your business, idea, or project.

The Internet has many Crowdfunding sites and it can be confusing and challenging to find the right one to fit your needs.  VAMBOA staff has researched some of the best crowdfunding sites in 2020 and they are below in alphabetical order:

Chuffed 

This platform is exclusively for non-profit or cause-based organizations and is focused at funding projects that help animals, the environment, or your community. This platform has funded approximately 8,000 campaigns which have collectively raised over $18 million dollars.

Crowd Supply 

This platform’s mission is to “bring original, useful, respectful hardware to life.” So far over 70% of all projects on their site have been successfully funded and twice more than Kickstarter. Regardless of what business you are in, or what project you wish to bring to life, from a simple family recipe to a complicated electronic device, Crowd Supply can assist you in making your dream into a reality.

Crowdfunder 

This platform offers equity crowdfunding that translates into selling shares of your company to accredited investors. Currently they boast a community of over 200,000 entrepreneurs and investors.   They have raised over $150 million dollars in capital to help any business from startups to Pre-Seed to Series A companies.

Experiment 

This platform’s goal is funding scientific discoveries that “push the boundaries of knowledge.” The main focus is to help scientists move away from university grants that have a high overhead cost of as much as 50 percent to 60 percent.

Fundable 

This platform offers two different programs. One option is for consumer businesses helps them raise capital for products, pre-orders, or selling merchandise. There is a $50,000 capital limit. The other is an equity program for products, services, or B2B business. This option allows the company to raise a huge range of from $50,000 to $10 million dollars.

Fundly 

This platform allows you to “raise money for anything” with zero raise requirements and zero startup fees involved. They will fund any project from personal health needs, to politics, and even vacations.

GoFundMe

This platform is for raising money for a cause including a person, a group, or nonprofit.

Kickstarter 

This platform is perhaps one of the most widely known crowdfunding sites today.  You can raise money for anything you wish. The only stipulation is that you must meet your funding goal within the allotted timeframe. Otherwise the project is not funded, and the backers receive their funds back.  To date, they have helped well over 15 million people raise over $3.7 billion to successfully fund more than 143,000 projects.

Indiegogo 

This platform offers both live crowdfunding campaigns and a full marketplace for innovative products. They are the sister platform to the popular GoFundMe platform. With Indiegogo, you can also choose whether your backers receive equity, securities, revenue sharing, or even cryptocurrency. To date, they have helped entrepreneurs raise over $1 billion dollars to fund more than 650,000 projects.

LendingClub 

This platform will connect a borrower with an investor for a personal loan of up to $40,000 dollars or business loans up $300,000 dollars. This one is really recommended for large, one-time expenses. The investor purchases a note that corresponds to a fraction of the loan in exchange for a solid return.

Patreon  (not to be mistaken with my favorite tequila, Patron)

This platform helps artists, musicians, writers, and other creative types obtain funds by running a membership business for their fans. The revenue comes from the fans paying a subscription fee in exchange for exclusive experiences and behind the scenes content.

WeFunder 

This platform focused on any small business, from a small restaurant to tech startups. They currently have over 150,000 investors and campaigns can raise anywhere from $50,000 to $50 million dollars.

SeedInvest 

This platform is focused on high-growth, professional and early-stage companies to raise either preferred equity or convertible note funding.

Keep in mind that each of these platforms has a different pricing structure and different fees.   VAMBOA is not endorsing any of these Crowdfunding sites but providing information.  We encourage our audience to refer to please each platform’s site for more information on what they charge to raise capital for your business or idea.

If you are not already a VAMBOA member, please consider joining.  There are not any fees or dues.    We will also provide you our seal to feature on your web site and collateral.  Here is a link to join:   https://vamboa.org/contact-us/

By Debbie Gregory.

Good customer reviews can truly improve your revenues and small Veteran Owned Business.   When we are evaluating a new product, service, or website to make a purchase, most of us look over reviews to learn more before hitting the purchase button.  Every type of business needs good reviews.   Did you know that they can also improve your Search Engine Optimization known as SEO?   Good reviews and Search Engine Optimization or SEO work together to provide your business maximum benefits.

Search Engine Optimization or SEO is the process of maximizing the number of visitors to a particular website by ensuring that the site appears high on the list of results returned by a search engine.  In simple terms, search engine optimization is anything done to improve the ranking of a website on search engine page results.   The better your rankings, the more people and users will be able to find your Small Veteran Owned Business.   The web provides you a huge base of potential customers. The key to obtaining greater traffic and bringing potential customers to your website and business is integrating content with search engine optimization.  Revies, especially good ones are excellent content.

You might compare a customer review to a report card or grade.  It can tell potential customers all about your products, services, and business.   A good review can encourage more business and a poor review can make potential customers turn away.   If you have good reviews with four and five stars, then potential clients will also be willing to pay more and order greater quantities for your products.

Buying decisions are driven by customer reviews.   Did you know that over 90 percent of shoppers read reviews online before making any type of purchase?  Over 70 percent will not take any action until they read a review on your business.   Your reviews are tied to your success.  Your online reputation is very important and even more so now during this pandemic when so many consumers are purchasing products and services online.   It does not matter what your business markets, your online reviews will make the difference on whether a potential client makes a purchase with your company.  It will directly drive your success or failure.

More and more consumers are relying on search engines such as Google and expecting the highest-rated products or services to come up in their results from the best companies.  Google and other search engines need customer reviews to determine if a particular business is deserving of the highest search results.  This is how customer reviews and Search Engine Optimization, or SEO go hand in hand.   It is also important for you to reply to customer reviews.   We highly recommend that you create a Google My Business Profile.

It is important to ask your customers to review you on Google, especially happy and satisfied customers.  Perhaps you are shy and find it a little difficult or uncomfortable to ask for a customer reviews on Google.  Get over it!  More than likely your customer is happy to do so and if they decline, another customer will.

The best time to ask a customer for a review is when your customers or clients are very happy with the services or products that you provide.   You should ask all happy customers to write a review because the more positive reviews you have on Google, Yelp, or other search engines, the more you will be indexed and gain new clientele.    Maybe even offer happy customers a discount on their next purchase to show your appreciation.  It is always important to thank customers for good reviews too.

The best way to collect review is to set up a custom branded review landing page.   There is review management software.    The ten best we were able to find are:

• Podium
• myPracticeReputation
• Rize Reviews
• Swell,
• Birdeye
• Reviewinc
• Yext
• Get More Reviews
• Doctible
• MyReviewDashboard

Each offers specialized services such as its own personalized landing page with a dedicated URL to help you grow your customer reviews.

VAMBOA, the Veterans and Military Business Owners Association hopes you enjoyed this article and found it valuable to your business.  We encourage you to join VAMBOA.  There are not any membership fees or dues.   Here is a link for you to join:  https://vamboa.org/member-registration/

By James Pruitt– Staff Writer

The interview process should strike a balance. On one hand, employers must vet potential hires fairly and accurately. On the other, questions about race, ethnicity, gender identity, sexual orientation, national identity, family status, age, disability, or even genetics can land a potential employer in hot water, as well as alienate some of the best talent.

The EEOC (https://www.eeoc.gov/laws/types/index.cfm) provides guidelines that offer protection from sensitive situations. While new employers must necessarily find the right “fit,” certain guidelines can keep your organization out of legal and ethical hot water. There are several rules of thumb that can help interviewers avoid murky waters.

Mindfulness is important with personal banter in initial contacts with the potential hire. and relevance is key. The characteristics and circumstances of the employee only really matter in so far as they relate to the job itself and the tasks at hand. Employers should avoid direct questions when other avenues for inquiry are available.  Most importantly, employers should stay frank about which skills and characteristics are necessary for the job itself.

As a guideline to ensuring a fair interview process, certain specific questions can be pinpointed as hazardous to an employer’s relationship with the EEOC. The following seven common interview questions can land prospective employers in hot water.

First:  Interviewers should avoid questions about graduation dates. Some local employers may seep into innocent banter with such a subject, especially with a shared alma mater. However, other employers may use this question for discriminatory purposes. The Age Discrimination in Employment Act (ADEA) prohibits interview questions that seek to discern age. Such questions must be avoided.

Second: Questions about legal troubles must stay relevant. Of course, employers need to ask certain questions to ensure a safe and functional workplace. For example, generally, convictions for fraud are relevant for workers who handle money. However, a past conviction for a low-level drug offense may not be relevant for a cashier or warehouse position. Consider the link between the offense and the actual duties.

Third:  Questions about family can lead an employer down a tricky path. Despite the temptation to slip into personal banter in an initial encounter, questions about marital status or family size can leave an employer at risk for an EEOC challenge.

Fourth:  Interviewers should avoid questions or remarks about company culture that relate to age. This can cast a broad net. Some specifics that commonly relate to company culture involve the prospect of having a boss, medical leave and family issues. Leading questions that may entrap candidates into admitting the responsibilities and burdens of an older worker are best avoided.

Fifth:  If the interviewer notices an accent, this is best kept to oneself. In fact, employers should leave geographical origin out of the interview process in general. Such questions may relate to race or national origin.

Sixth:   Use caution about questions regarding salary history. Certain jurisdictions outright ban questions about current salary, such as New York City, Philadelphia, Massachusetts, Delaware, California, Oregon, and Puerto Rico.

Seventh:  Employers should avoid questions relevant to medical history. Many employers may use such questions to gauge fitness or possible attendance. However, the Americans with Disabilities Act (ADA) renders discrimination based on disability or perceived disability illegal unless relevant to the job. Questions about medication use fit into a similar aura. Such questions are best avoided absent clear concerns that a worker’s health directly impairs their ability to fulfill everyday duties.

Discrimination is not the only danger lurking in the interview process. Unfulfillable promises may land the employer in the courtroom under contract law. To win over a favorite candidate, employers sometimes hide the truth to make a position more attractive. Unfulfillable promises could result in lawsuits for breach of contract. Employers must never make promises they cannot keep. Examples may include promises of benefits, permanent status, and opportunities for advancement within the company. Employers must avoid such promises unless the opportunities for the candidate are genuinely realistic.

Also, employers should use the same set of questions for each candidate. Deviating from a certain template of questions in the interview process could sprout suspicions of favoritism or discrimination. For example, asking only female candidates if they can work long hours could raise eyebrows during a discrimination suit. Tailoring specific questions to specific candidates could also lead to accusations of nepotism, favoritism, or other biases. Whether or not a discrimination suit arises, the image of an unfair hiring process will inevitably harm an employer’s reputation.

In conclusion, common sense should prevail during the hiring process. Interview questions should remain relevant to the job at hand, and the employer should be honest and up-front about the nature of the job and what they can offer the employee. Such transparency is crucial to maintaining an employer’s reputation.

Disclaimer:   VAMBOA, the Veterans and Military Business Owners Association recommends on any legal matter that you consult a licensed attorney.  We are not attorneys and are not providing legal advice.  Please be advised that this article is written from research and is purely informational.   We encourage you to consult an attorney.

*** We hope you enjoyed this excellent article by James Pruitt, our new writer.   Stay tuned for his bio and learn more about James.