By James Pruitt, Senior Staff Writer

The Pandemic has given us the term “the New Normal.” The new “work-from-home” paradigm also entails the term “Digital Nomad.” Are “Digital Nomads” synchronous with “the New Normal?” Many define “Digital Nomads” as workers with the independence to produce anywhere, anytime. 

“The New Normal” developed at the outbreak of the Pandemic, only a year and a half ago, and provides workers the flexibility to work at home as necessary. “Digital Nomads” are nothing new. However, these “extreme” remote workers have seen their roles expand and develop considerably during this period.

A few small countries have even started allowing “digital nomad” visas for workers who want to “work in paradise.” These countries include Bermuda, Mauritius, and Montserrat, as well as several European countries. But is a “digital nomad” really the same as a hybrid worker? Let’s flesh this out.

Who are Digital Nomads?

“Digital Nomads” live out-of-reach of their office headquarters. Younger workers, as well as retirees, have increasingly adopted these arrangements. Many employers have decided to focus on output rather than “presenteeism” Such arrangements have even become more common indirect employer-employee relationships, and are no longer the sole domain of freelancers and casual workers.

Communication Issues

Such an arrangement could be perfect for many business relationships. Other relationships, not so much. Good candidates for “digital nomads” may include creative workers using their own resources, as well as positions with limited client contact. Such “extreme” remote positions should allow relative independence from management. 

“Digital nomads” are not people who need detailed instruction in office processes. Oftentimes, such workers are creative workers who function successfully as their own mobile small businesses. Workers who might need to be called into the office periodically are not good candidates for “remote work visas.”

For example, in some cases, an employer may require a worker’s presence in an in-person client meeting. Successful employers and contractors foresee these demands before committing to arrangements such as, for example, procurement of a remote work visa.

Security Issues

Employers should consider possible security breaches when considering the scope of remote relationships. Some workers may have access to secure information. These workers may need a closer relationship with their home base. For example, each device containing secure information presents a security risk. Assuming the presence of sensitive information, loose monitoring of such devices is bad practice.

Expenses for Remote Work Visas

A visa for “working in paradise” generally costs several hundred dollars for the visa itself as well as proof of income. “Paradise” can include diverse remote island countries as well as several European countries including Germany, Portugal, Iceland, and Croatia. Each country offers its own price for the visa itself, in addition to income thresholds levels to prove robust links with the employer.

“Hybrid Workers” versus “Digital Nomads

Business owners should distinguish between workers who might qualify for “hybrid roles” and workers who might become full-blown “Digital Nomads.” “Digital Nomads” can work in far remote locations with no physical contact with management. The employee’s role should be established and meticulously carved out before initiating an entirely remote arrangement. 

VAMBOA, the Veterans and Military Business Owners Association hopes 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

Entrepreneurship entails bravery. New business owners give their time and resources for an idea. In some cases, entrepreneurs put their own retirement plans on hold, at least while building their new business. In other cases, an expanding business may need to consider the best options for retirement practices for employees. In all cases, careful research about retirement options should precede the development and expansion of any business.

Several options exist for both owners and employees. These options include the Self-Employed 401(k), the Simple 401(k), the Simple IRA, the Roth IRA, and the SEP-IRA. Each has different applications for both owners and employees.

Features of various retirement options include the “employer contribution,” the “employee contribution,” and differing administrative methods based on factors such as size and contribution amounts.

Setting up a Retirement Plan

The type of retirement plan depends on the nature of the business. The business may be a sole proprietorship, a family business, or may depend upon skilled employees. 

Ideally, of course, a successful business should pay into the futures of their employees or the business owner at the very least. When businesses don’t account for retirement plans, they generally have a lack of incoming funds to blame.  

Some businesses only have the owner to account for. Others need to attract valuable employees, which factors into the need to undertake the complex process of determining the correct retirement package for the onboarding process.

The following website provides a starting list of financial companies that may provide retirement options, as well as advice for further research: 

https://www.investopedia.com/articles/personal-finance/102015/10-providers-401k-plans-small-employers.asp

Options for Business Owners

Veteran Business Owners come from a variety of circumstances and walks of life. Some may have a vested pension from a previous employment situation. Others may be taking a full plunge before they’ve planned for retirement. 

At times, a sale of the entire business offers the only retirement option for a small business owner. Remember that a full sale is viable only in cases where the business can continue to operate.

The self-employed 401(k), or the “solo 401(k),” provides the best options for business owners without employees. Other plans treat employers differently from employees. This plan offers flexibility to tailor the contributions to the interests exclusively of the owner. For example, the proprietor has the option to set the “employee contribution” up to 100% of the compensation up to a limit of $19,500 for those under 50. Older business owners can contribute up to $26,000. An “employer contribution” can reach 25% for a total of $54,000.

Options for Employees

In order to attract the best talent, Veteran Business Owners should research their benefits packages. Many businesses need healthy relationships with employees to function. In light of the current labor shortage, some businesses need tradespeople with or without college degrees. 

Varieties of benefits options may attract these valuable employees. Among these are a traditional 401(k), a “Savings Incentive Match Plan for Employees,” and a “Safe Harbor 401(k), which reduces administrative costs while reducing flexibility. Finally, the “Individual 401(k)” is a special option for couples who jointly operate businesses. 

IRAS versus 401(k)s

“IRA” stands for “Individual Retirement Account.” An employer does not pay into such an account but may provide eligibility to a certain IRA fund through a deal with the financial institution. On the other hand, a 401(k) offers joint contributions between employee and employer. 

One difference between an IRA and a 401(k) lies in the relationship with the employer. However, a second difference lies in taxation. Generally, with Roth IRAs, contributions to the account are subject to taxes, but contributions withdrawn in retirement are exempt. Withdrawals from 401(k) accounts, however, are indeed taxed.

VAMBOA, the Veterans and Military Business Owners Association hopes 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

Short-term credit often provides vital sustenance to a new business. Short-term creditors also commonly predate on fresh entrepreneurs.  Regardless of the need, business owners should use such lenders cautiously.

“Loan sharks” can suck businesses dry in their times of vulnerability. This stage of the pandemic likely exposes the vulnerabilities of many businesses. Small businesses now likely struggle with debts as well as labor and inventory. Predatory lenders may circle like vultures at this stage.

Are there healthy routes to short-term credit? Absolutely. Three outlets can provide safe short-term loans for the cautious small business owner.

Lines of Credit and Online Short-Term Loans

Always beware of unethical practices by creditors. Predatory lenders often exploit smaller business owners with exorbitant Annual Percentage Rates (APRs) and crushing terms. Of course, businesses do need a cushion when crises arise. This cushion could be hard cash in a savings account or a line of credit from any of a variety of lenders, including mortgagers and small banks.

As discussed in our previous blog posts, cash flow poses issues for many business owners. You need money to make money, right? A trustworthy lender usually asks two things from a small business for a simple line of credit: At least six months in business, and at least $50,000 in annual revenue. Short of these requirements, Veteran Business Owners should give a second look to any lender offering short-term lines of credit. A line of credit may provide the “emergency fund” to protect a business in case of a short-term crisis. 

In a pinch, an online short-term loan may offer a tempting alternative. Direct cash from a lender may provide another “safety net.” However, absent reasonable terms, business owners should look elsewhere before contracting with lenders that seem too eager to dispense short-term capital. Their collections efforts will likely haunt them afterward.

Most online short-term loans have similar terms as lines of credit. A decent credit score tends to hold greater significance when the lender offers hard cash outright. These loans offer further risks, and the lenders use even more caution when approving short-term cash. 

These loans can range from four to five digits. However, bear in mind that the payback period can range from three to eighteen months. Creditors will want their money in the meantime. Lenders will also wield greater leverage in negotiations for payment plans and repayment terms. In short, despite the occasional necessity of short-term money, lenders inevitably demand their pound of flesh afterward.

Equipment Loans

These loans are a different sort of animal. Lenders foreclose on the equipment itself in case of default on these loans. Such equipment may include kitchen equipment, warehouse machines, and even company-owned mobile devices. Most lenders expect more security from business owners for such loans, since damage to equipment can greatly decrease its value following repossession.

Trustworthy lenders generally expect eleven (11) months in business, a decent credit score, and $100,000 in annual revenue before securing a necessary piece of equipment. The risk to the lender is greater, so the contractual terms place more responsibility on the borrower.

When to Use a Short-Term Line of Credit?

All businesses (and even individuals) should ideally have an emergency fund. Lines of credit and short-term online loans may plausibly furnish that cushion. Additionally, Veteran Business Owners may lack investment funds during their idea’s development phase. In the case of shorter loans and payment plans, both lenders and borrowers generally should recognize the urgency of repayment. Hence, everyone should apply a fine-tooth comb to short-term financing. Short-term lenders can be as sketchy as they are sometimes necessary.

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

No company is a fortress, least of all small businesses. However, threats from outside are very real. Outside hackers as well as internal saboteurs can ruin a company. As the Internet comes of age, the good business practice requires that business people grow in sophistication just as the motley crew of potential scammers does the same.

1) Relationships with Employees

Creating a culture of security can save a business. One data breach can ruin a company. Access to a company’s online records merits careful consideration.

On an ongoing basis, workers should receive education about the dangers of online interlopers. Not every computer operator may understand even basic security concepts, such as the dangers of opening attachments. Periodic security courses can refresh employees’ knowledge regarding outside scammers, and the education can even benefit the employee in the long term.

At the very least, measures should be taken to ensure the separation of online life between work and home.  The use of workplace confidential information on unsecured home devices could make easy marks for scammers hungry for confidential information they can sell online.

Assuming the employee has an email account, the employee should know the basics of online scams such as “phishing,” fake online antivirus scams, and any of a host of more insidious schemes that may install malware or spyware onto company computers. Here is a link to some of the most common scams: https://uk.norton.com/internetsecurity-online-scams-5-most-popular-scams-in-2020.html.

Additionally, former employees commonly defraud small businesses with the information they carry off from the worksite. Employers should be as realistic about their own needs as they are about their relationship with their workers. As employees leave the team, their logins should be deleted immediately. Password management software may help with this process. Applications such as Dashlane or Lastpass may prove invaluable in managing IT aspects of any sort of offboarding.

In any case, good business practice demands (1) careful education of employees regarding good security practices, and (2) consideration of the terms of employee separation.  

2) Consider Industry Standards: Different Industries may have Different Forms of Sensitive Information

Some businesses may handle specialized information subject to unique legal requirements. For example, medical records may constitute PHI (Personal Health Information). In such cases, contracting businesses need to adopt practices under HIPAA (the Health Insurance Portability and Accountability Act) to ensure compliance. These practices may include seemingly extreme measures including computer privacy screens, injunctions against in-office cell phones, and measures to keep medical records out of the open air. Such measures may seem silly but are important for small businesses contracting with medical organizations that handle protected health information (PHI). Violations of HIPAA may range from medical ridicule to identity theft. These violations may also result in any range of consequences from jail time to monetary fines.

Other similar privacy laws may include the Family Educational and Privacy Act (FERPA). Many smaller businesses handle confidential information under FERPA and HIPAA. Protection of such information is crucial and may require special training under each statute.

3) The “Right” Security Expertise

Many companies now outsource their information technology needs. As these companies become more affordable, Veteran Business Owners should research IT services that best fit their niche. Many independent companies specialize. For example, legal, medical, and educational IT companies may provide the right expertise for various relevant companies. The expertise of such companies may provide crucial expertise for the unique logistical and legal demands of smaller companies handling sensitive online information.

Finding the right security software can present another problem. The tricky landscape of online security can daunt the most discerning business managers. Some online security applications are outright scams. Others may not quite provide the necessary airtight protection against the most skillful breaches. Many small businesses find larger, established companies such as Norton satisfactory. Others choose to do their own research.

The Bottom Line

In sum, honesty and common sense should prevail in the management of company information. The most sensitive information may include private customer information, gatekeeping data such as passwords, and internal proprietary information hidden within company records. In fact, the standard should be airtight security whenever possible, rather than mere due diligence.

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

Shutoffs can ruin businesses when bills are not paid. However, business owners may need to shut off services as emergencies arise. Climate change has increased the frequency of weather events, and events of the past year highlight the challenges of social change as well.

One advantage of a small business is the ability to adapt better than larger organizations. As such, Veteran Small Business Owners should plan for survival in tragic situations. 

Shutting off Electricity:

Weather events could bring a host of problems for the electrical grid. Businesses might need to close due to a variety of local climatic phenomena. Windstorms, brush fires, and snowstorms could each render transportation systems unusable, preventing the involvement of utility companies and first responders. An earthquake could damage the wiring in the business structure itself. 

The first contact in a natural disaster should be the electric company. Use extreme caution before tampering with electrical equipment. Hopefully, an on-site maintenance person can handle any issues. 

Only a worst-case scenario warrants the presence of an untrained small business owner in the utility room. In such a case, wait for instructions from the electric company or fire department. However, shutting off the electricity is actually fairly straightforward. Just remember the danger absent proper safety precautions. First, make sure the power is off. A voltage tester can accomplish this task. Then, switch all circuit breakers to the off position. Finally, do the same to the main circuit or fuse.

Never perform these tasks in the case of flooding. Avoid water in contact with electrical equipment. In such a case, the electric company is the best contact for the long-term resolution of the problem.

Shutting off Gas

As with electricity, the gas should only be turned off on the advice of the utility company or the fire department. Once the gas is turned off, wait for a professional to turn the gas back on. However, everyone should at least know how to turn off the main valve.

The scent of natural gas should be a red flag, as should the sounds of hissing and blowing. Each could indicate a leak. The main shutoff valve, often called the street-side valve, is generally where the main pipe first enters the building, just before the gas meter. A tool such as a wrench is usually necessary in such a circumstance. Additional shutoff valves may be located near any appliances that utilize gas.

Generally, gas companies don’t want consumers tampering with their equipment. Small business owners should only resort to such measures after outright instructions from the company or the fire department. A natural disaster may provide the context for such a situation.

Shutting off Water

Natural disasters may often involve flooding. Dangers from flooding may extend well beyond the water damage to physical property. Contact with electrical equipment could create a deathtrap.

Additionally, turning off the water protects from contamination, and ensures that clean water won’t drain through damaged water lines. In fact, business owners are well-advised to turn off the water during periods of vacancy.

As with gas, the main shutoff valve maybe near the meter. Proprietors may find the meter outside the house or in a basement area. A plumber may help locate the correct meter for use in emergencies. Never confuse the water meter with the gas meter. 

Again, as with gas, individual shutoff valves may be located near appliances that use water, such as refrigerators, toilets, and sinks. These valves are useful whenever these appliances need repairs.

Overall Safety Considerations

Always consider the safety ramifications of tampering with gas and electricity. Generally, only professionals should handle these utilities. Given an emergency or natural disaster, the fire department or utility company should give the green light before the involvement of a layperson. However, an understanding of the gas and electrical systems could come in handy in the event these services become unavailable. 

Smaller businesses have the advantage of tighter understanding and control over their instrumentalities. This understanding should include the last resort in the case of emergencies and disasters. Given changes in the social and environmental fabric, such events may only increase over time.

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/