By James Pruitt, Senior Staff Writer

The Pandemic proved one fact to consumers and businesses: Remote ways of transacting are here to stay. Coronavirus only accelerated existing trends. In other words, even nontraditional online strategies can work, in some cases better than the old ways.

Some of the newer trends are the following:

1.Working from Home

Many workers simply work better from home. Also, many businesses function better this way as well. For example, remote work can eliminate problems with the commute. Working from home can also ease the burden on employers in the recruiting process. Accountants, real estate workers, and IT professionals, for example, often can work from home, even as many other professionals cannot. 

At the same time, other companies do need in-house workers. In fact, many prefer them even when they can subsist with a remote workforce. For example, in-person work often makes feedback easier to give and receive, and facilitates team building and group work, even in industries where remote work is quite doable.

In 2022, we now recognize the possibilities of at-home work, although the permanence of the traditional employment model goes without saying.

2. Reaching out Remotely to Customers

The Pandemic was a boon for online companies like Amazon since customers found themselves confined as they sheltered in place. In fact, the Pandemic made clear to a wider audience the potential of online marketing. While brick-and-mortar enterprises will never die, these past couple of years has incentivized wider use of online strategies.

3. Importance of Social Media Influencers

Along the same lines, the Pandemic forced many of us to turn to social media for socializing. Significantly, influencers have gained more influence in a wider range of fields. A “nano-influencer” might promote a niche specialty or a unique service. A “micro-influencer” might have more followers but remains within a niche field, hobby, or profession. A “macro-influencer” probably has more than 100,000 followers and a wider range of influence. A “mega-Influencer” would have over a million followers and leagues of devoted fans hanging on their every word. Kim Kardashian would be an example of a “mega-influencer.”

These one-person marketing machines have gained more respectability and wider roles. Only recently have we seen their utility as an option for promoting new brands. 

4. Consumers Have More Options: Brand Loyalty Has Declined

Here is another economic trend that the Pandemic has accelerated. In the past, in-person businesses have had captive audiences. Businesses catered to their own communities. However, the online world has exposed us to a much wider range of options for whatever goods or services we might need. 

One of the saddest trends in economic history was the replacement of mom-and-pop businesses with chain stores in the early 1900s. The Pandemic has complicated this trend by driving home the indispensability of the internet. 

Small business owners shouldn’t fret. One benefit of this process is that now even they can compete with larger business owners simply because they have a wider audience, and better means to promote still better goods and services. This is bad for stores like Sears and Nordstroms, but good for Veteran Business Owners.

Conclusion

In short, the Pandemic accelerated trends that started decades ago. Now, any number of enthusiastic, charismatic individuals can become influencers or business owners. In other words, we have new techniques of marketing and new styles of entrepreneurship. These trends will continue, and while older ways of doing business will always stay relevant in this diverse economy, the newer ones are here to stay.

VAMBOA, the Veterans and Military Business Owners Association hope that part one of this two-part mini-series has not only been valuable but provided some unique perspective.   Stay tuned for the next article.  

We work hard to bring you important, positive, helpful, and timely information and are the “go-to” online venue for Veteran and Military Business Owners.  VAMBOA is a non-profit trade association.   We do not charge members any dues or fees and members can also use our seal on their collateral and website.   If you are not yet a member, you can register here:  https://vamboa.org/member-registration/

We also invite you to check us out on social media too.

Facebook:  https://www.facebook.com/vamboa

Twitter:  https://twitter.com/VAMBOA

Do not forget that VAMBOA members receive significant discounts on technology needs.   Check them out here: https://vamboa.org/dell-technologies/

By James Pruitt, Senior Staff Writer

Small business loans help entrepreneurs build, maintain, or expand their companies. Getting a business loan for your company doesn’t always require walking into a bank and securing funds.  There are also a variety of online small business lenders to consider, which may have easier qualifications and faster applications.

Small businesses account for a significant chunk of American economic activity.  The United States Small Business Administration (SBA) estimates that there are 32.5 million small businesses across the country. While the nature of each one varies, many hold one major thing in common: the need for business financing.

Remember that loans don’t provide the only recourse. Money for a small business may come from any of many sources, including grants and lines of credit. Each option comes with its own benefits depending on the business owner’s circumstances.

As for loans, good terms can provide crucial growth fodder for your enterprise. However, smaller businesses need to do their homework before taking the plunge. Consider how much your business needs as well as your eligibility. Alternative lenders, such as OnDeck and SGB Funding, can provide support for new business owners without a strong credit history, but only in exchange for less favorable terms. 

Business owners may obtain good credit by:

• Signing up for a business credit card,
• Establish ongoing relationships with suppliers, which may include obtaining trade credit. Many suppliers may extend credit which they report to credit agencies.
• Ensure prompt payment of any debts. Also remember that if you choose to incorporate your business, the business itself transforms into its own entity. The credit agency’s relationship is now with the business rather than you personally.
• Carefully monitor your progress with each of the credit agencies.

As for the application process, lenders generally look for evidence of a strong, consistent cash flow. These lenders tend to ask for, at a minimum:

• A recent statement of profits or losses
• Personal and business tax returns going back 2 or 3 years
• Business plan
• Any legal filings, such as Articles of Incorporation
• Any business licenses you or the other owners hold.

Credit scores can vary, but a score of over 700 should ensure good terms for a loan.

When choosing a lender, consider the types of loans available. These loans may include:

For example, “franchise startup loans” can allow a purchase of a branch of a larger company. Some entrepreneurs may purchase a franchise office for a larger company such as Mcdonald’s, 24 Hour Fitness, or any of a variety of other larger companies.

A “professional practice loan” may provide an option for a Veteran who’s just finished school. Some business owners need startup money even after they’ve gone through graduate school and received a license. Think doctors, lawyers, speech therapists, nurse practitioners, accountants, and Certified Physicians Assistants. 

Yet another example: “working capital loans.”:  Short-term loans are meant to keep the enterprise running, often through a crisis or downtime. Several Pandemic-era loans rescued various restaurants and entertainment venues during lockdowns to keep them alive through those difficult months.

Some loans may specialize even further. Many lenders offer “equipment loans” for business owners who need specialized equipment to stay running. Examples may include restaurants that need specialized cooking equipment and clothing companies that may need embroidery equipment, looms, and other devices. 

Check with the direct lender before considering any of these types of loans. Overall, different lenders provide different pathways to obtaining funding. A good relationship with the direct lender and an inquisitive approach to interactions with that lender could make all the difference. Getting the right information at the right time provides the best long-term outcome with a commitment to a small-business loan.  

VAMBOA, the Veterans and Military Business Owners Association hope that this article has not only been you have enjoyed this second and final article in this mini-series and that it provided you with some valuable information. 

We work hard to bring you important, positive, helpful, and timely information and are the “go-to” online venue for Veteran and Military Business Owners.  VAMBOA is a non-profit trade association.   We do not charge members any dues or fees and members can also use our seal on their collateral and website.   If you are not yet a member, you can register here:  https://vamboa.org/member-registration/

We also invite you to check us out on social media too.

Facebook:  https://www.facebook.com/vamboa

Twitter:  https://twitter.com/VAMBOA

Do not forget that VAMBOA members receive significant discounts on technology needs.   Check them out here: https://vamboa.org/dell-technologies/

By James Pruitt, Senior Staff Writer

We’ve all heard of “legalese.” It’s famously confusing. But how are we supposed to follow the law when barely understand the letter of it? We all must deal with business contracts, especially in the business world. But slogging through the thick language is enough to send the best of us into a trance.

What do Veteran Business Owners need to know? Let’s start with the basics that might help us wade through the marshland without getting stuck in the mud.

Business owners should understand the concept of offer and acceptance. An offer legally binds us and grants us the right to accept at any time before withdrawal. In fact, the offeror may withdraw at any time before acceptance. Business owners should realize the weight of such terms when dealing with customers and contractors. 

Weasel words abound, so scan any document you sign. Also, here is an important point. Not every contract involves a signature on paper.

Before you sign (or agree to) a contract, look out for these terms, however, worded, before any danger breach:

Offer: Remember that the offer itself carries its own legal weight. The offer in most cases grants the right to accept. Ideally, the offer carries terms precise enough to convey what is expected. Assuming a “meeting of minds” (and yes, that is a term of art), the offer becomes law upon acceptance.

Acceptance: When the offer is accepted, it binds both parties. An outstanding question remains: what are the terms? 

Negotiators need to think of what they are agreeing to. Also, think carefully about how you are supposed to agree to it. sometimes just behaving like you’ve sealed the deal is enough to bind you in court.

Breach: This is a magic word. A contract binds each party. The terms of the contract, however, may get wrangled over in court. Parties should always know what they agreed to. 

Force Majeure: Some legal terms are tough to pin down. Force majeure can encompass any variety of circumstances that make performance impossible. It is a fancy way of saying undue burden. 

Perhaps Hurricane Katrina just struck on the other side of the country, where you get your supplies. Maybe someone in the supply chain got the flu during the Pandemic. The situation will differ on a case-by-case basis, and the burdened party may be excused from performing their part of the deal.

Parties: A contract should make clear the identity of the parties. 

Indemnity, Waiver, Hold Harmless: Each of these terms is a fancy piece of jargon to get someone off the hook. 

First, a contract may indemnify against harm to third parties, assigning liability entirely to one of the contractors. 

Second, a waiver may spell out conditions under which some responsibility under some circumstance.  Occasionally, a contract may even waive liability for a court claim. These clauses may or may not be completely enforceable and should be read carefully.

Third, a contract may hold a party harmless in cases of harm to the other party. Again, these clauses have varying degrees of legality, and their validity should be verified by an attorney.

Now let’s see what happens after a breach:

Arbitration or Mediation: In some cases, parties may agree to pass through a professional who will settle disagreements. They may escape a trial in court, but the resulting decision is considered an enforceable contract.

Forum/Choice of Law: Sometimes, the physical location of a court case may influence the outcome of a court case. Other times, controversy arises over the law to be applied case itself.  Lawyers routinely fight over these questions. The law is not the same in any jurisdiction. Similarly, the forum, or physical location, may unduly burden one party. For this reason, parties often spell out these issues beforehand during the formation of the contract.

Liquidated Damages: Contracts may prescribe a preset compensation in case things fall through. These clauses are usually enforceable when reasonable.  However, remember that “reasonable” may be a matter for the courts to decide.

Severability: Sometimes, part of a contract is simply unenforceable. A severability clause ensures that the rest of the contract is still in force.

Each of these terms may be referred to as something else. However, all appear routinely in business, and even in personal transactions. An understanding of the basic principles behind each can term prevent a serious headache for everyone involved.

Disclaimer: This article is for informational purposes only. It was not written by attorneys and should not be considered legal advice.  VAMBOA recommends that you consult your own attorney before entering into any type of legal agreement.

VAMBOA, the Veterans and Military Business Owners Association hope that this article has not only been valuable but provided some unique perspective.  We work hard to bring you important, positive, helpful, and timely information and are the “go-to” online venue for Veteran and Military Business Owners.  VAMBOA is a non-profit trade association.   We do not charge members any dues or fees and members can also use our seal on their collateral and website.   If you are not yet a member, you can register here:  https://vamboa.org/member-registration/

We also invite you to check us out on social media too.

Facebook:  https://www.facebook.com/vamboa

Twitter:  https://twitter.com/VAMBOA

Do not forget that VAMBOA members receive significant discounts on technology needs.   Check them out here: https://vamboa.org/dell-technologies/ 

Can Same-Day Pay Help a Labor Shortage?

By James Pruitt, Senior Staff Writer

“Same-day pay” saw a redefinition in recent years. The past stigma associated with same-day pay has worn down in the face of current needs. In the past, observers have associated same-day pay schemes with agencies and employers that sometimes exploit those desperate for money. However, despite the stigma, economic developments and technological advances could make these relationships more workable.

1. Same Day Pay in the Past Historically Has been Associated with Exploitation

Some temporary agencies have always used “same-day pay” to fill labor shortages. Often, these agencies use people who may need the money more than the companies need labor. Sometimes, the agencies and their clients “fudged” the labor factor to compensate. In other words, the workers have ended up doing harder work than they bargained for. 

Developments in technology and in the economy might sand out some of the inefficiencies that prevent more streamlined processes. Remember, the “same-day work economy” keeps many workers active. Such workers may include college students, caregivers, retired people, those in difficult straits, and any number of other people who just plain have labor to provide.

On the management front, managers often struggle to find the right labor at the right moment. Companies make do with what they have, and sometimes lack the flexibility to adapt to sudden changes in the market. 

“Same day pay” can provide an incentive to bring workers on board with short notice. Sometimes companies need labor now, and in exchange can tap into any supply of people who need money today. However, small companies may have trouble developing an equitable synergy between management and worker in these circumstances.

1. Finding People and Keeping People

The “neglected labor pool” is diverse. Often, those outside the traditional labor market need short-term gigs. In addition, many competent people have idled for years, due to the prejudice against “gaps in employment.”  

Simultaneously, many smaller businesses need good help. As these companies and these people “find each other,” the businesses and the people can grow together. The employment role can grow as the relationship grows, and the business can grow as a result.

In other words, short-term labor and same-day pay can be a blessing for workers and managers. The right strategies and processes can separate the most exploitative practices from that synergy.

1. Payroll Service Providers Have Advanced Technologically. Fees Are No Longer as Burdensome to Business Owners or Workers.

In the past, payroll service companies charged larger fees for the processing of quick paychecks. For example, cutting a check for a same-day worker may have cost a pretty penny. Smaller businesses sometimes paid in cash, which may have prevented the best possible record-keeping.

These days, technological advances have facilitated these short-term employment relationships. Expenses for cutting a same-day check, direct deposit, or even cold, hard, cash, have relaxed. Veteran Business Owners can thank technological advances for a decreased burden in the recordkeeping department, and increased efficiency in processing their workforce payroll issues.

1. Bottom Line

The recent labor shortage has caused burdens throughout different sectors of the economy. However, advances in the “short-term economy” could facilitate a new synergy between small business owners and even some parts of the neglected workforce. Many companies have adopted a novel practice of providing half the pay on the same day, and the balance during the payroll period. 

In general, same-day pay has become more workable with technological advances, which can help both workers and employers with their record-keeping and avoid fees. Veteran Business Owners should always consider the exploitation factor, but also consider the benefits to all parties when determining employment relationships.

VAMBOA, the Veterans and Military Business Owners Association hope that this article has not only been valuable but provided some unique perspective.  We work hard to bring you important, positive, helpful, and timely information and are the “go-to” online venue for Veteran and Military Business Owners.  VAMBOA is a non-profit trade association.   We do not charge members any dues or fees and members can also use our seal on their collateral and website.   If you are not yet a member, you can register here:  

https://vamboa.org/member-registration/

We also invite you to check us out on social media too.

Facebook:  https://www.facebook.com/vamboa

Twitter:  https://twitter.com/VAMBOA

Do not forget that VAMBOA members receive significant discounts on technology needs.   Check them out here: https://vamboa.org/dell-technologies/ 

By James Pruitt, Senior Staff Writer

1. Registering your corporation has Benefits. . . and Liabilities

One important consideration during tax season is your company’s organization, including any registration with government bodies.

Many small businesses outgrow their initial registration types. As a small organization grows, often the ownership needs to choose different organizational strategies.

Each business structure has its own “fit.” The simplest corporate structures retain the status of pass-through businesses. This category includes sole proprietorships, LLCs (limited liability corporations), and S corporations. Some of these business structures may not pay a corporate income tax.

On the other hand, these companies may lose out on other benefits. For example, companies that pay corporate taxes may receive asset protection against creditors, such as when a natural disaster forces bankruptcy and the ownership justifiably seek to keep their private assets separate from those of their enterprise.

Consider a balance of the different considerations at each stage of the development of your business. A sole proprietorship or home business almost never requires any kind of registration. Such a measure would only bring tax liabilities and nothing else. As a business grows in complexity, perhaps the benefits of registration may outweigh the tax liabilities.

1. Charity Work Can Provide Low-Cost Marketing While Freeing You from the Taxman

As described in other posts, involvement in the community can market your ideas, services, and products. Never forget the importance of tax breaks as well. The advantages of community engagement can lift hearts and spread the message of your company far and wide, but never forget the tax advantages. Charitable contributions are deductible, as are expenses in the pursuit of community enterprises.

1. Consider How you Treat your Employees: Tax Benefits can Arise

The IRS provides many incentives to treat employees well. For example, retirement benefits can not only improve employee retention but can also help pinch pennies when tax time comes.

For example, a 401(k) account for your employees, or even for yourself, can allow deductions in the amount of any contributions you make. As an alternative, a SEP may provide some of the same benefits to employers

More importantly, especially considering the coronavirus pandemic, several plans allow credits for employers who work to minimize the impact on their employees during the pandemic. Consider the Families First Coronavirus Response Act (FFCRA), the Coronavirus Aid, Relief, and Economic Security Act (CARES), the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA), and the American Rescue Plan Act of 2021 (ARPA).

Without going into too much detail about each of these Pandemic-era legislation measures, this legislation applies to employers who paid their workers during periods of lockdown, who provided benefits to such employees, and who allowed paid time off for the purpose of getting vaccinations.

The Bottom Line

Some changes may provide increased opportunities for Veteran Small Business Owners during the 2022 tax season, not least due to the pandemic. Overall, the best strategies for minimizing tax liability may arise from investigating the right organizational strategies. Remember to apply a holistic approach to balance the right strategies not only to avoid the worst tax liabilities, but to maximize benefits to yourself, your employees, and your community as well.   This article addresses generalities, and we highly recommend that you consult a tax professional with your specific questions.

VAMBOA, the Veterans and Military Business Owners Association hope that this article has not only been valuable but provided some unique perspective.  We work hard to bring you important, positive, helpful, and timely information and are the “go-to” online venue for Veteran and Military Business Owners.  VAMBOA is a non-profit trade association.   We do not charge members any dues or fees and members can also use our seal on their collateral and website.   If you are not yet a member, you can register here:  https://vamboa.org/member-registration/

We also invite you to check us out on social media too.

Facebook:  https://www.facebook.com/vamboa

Twitter:  https://twitter.com/VAMBOA

Do not forget that VAMBOA members receive significant discounts on technology needs.   Check them out here: https://vamboa.org/dell-technologies/