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5-Step Web Design Process to Create Winning Websites

Posted: 27 May 2019 10:00 AM PDT

Every website design and development project consists of a series of steps that need to be undertaken on a repeated basis. While each project and its requirements are unique, the series of tasks that need to be performed to get a business website up and running are consistent among the various projects.

Having a clearly defined website design process involves outlining of the steps that need to be taken to complete designing and developing a website. Following a well defined and documented web design process cuts down on the time taken for completing the project, improves the efficiency and ensures that none of the crucial steps are missed out.

A stellar design isn't merely focused on how pretty the visual interface looks. It goes on to combine a well thought out strategy with the design and development process to fulfill the purpose it is being built for.

Here is the list of steps that your web design process needs to include in order to create winning websites.

Step 1. Define the goals

Starting out, your project needs to have a creative brief that outlines what the website's end goal would be. Here is a list of questions that need to be answered before commencing the web design project.

  • What objective does the website need to accomplish, what problem does it solve?

  • Who are the target users of the website?

  • What is the intended benefit that the users would get out of using your website?

  • What is the primary aim of the website, informing, selling, getting the users to sign up for a service or something else?

  • Is there a competitor website that operates within the same niche as you plan to launch? What are its strengths and weaknesses?

The answers to these questions should be included within the creative brief prepared. This gives a much-needed sense of direction to your design project without which things would most likely go awry.

In order to provide the answers to the above questions, you need to define the target audience. Classify them into distinct audience personas. Work upon your value proposition and the benefit that your website offers to the target audience. Conduct market research and competitor analysis and determine where your website or web application factors in as a part of a wider segment.

Step 2. Plan the strategy

Scope creep is a very common occurrence in web development. The scope of the project keeps expanding and widening during the design and development phase, extending the estimated timelines which eventually requires budget extensions.

Setting up realistic timelines and strategic planning is critical for the long term project success. There are three main things to sort out within the planning phase,

1. Programming language and technology stacks

The technical aspects of the project such as a selection of the tech stack to build the website must also be decided upon within this stage. The decision regarding the technology stack is based on the website goals you sketch out in the previous step.

If the website is intended to be a source of information for its users, content management systems like WordPress would likely meet your requirements. On the other hand, if you are looking to build an ecommerce website, robust web frameworks would suit your needs better.

A detailed analysis of the programming languages and tech stacks and study of pros and cons of adopting each technology must be done before making a choice. A comparative analysis such as Ruby on Rails vs PHP would help you better understand the advantages and disadvantages of one framework over the other.

2. Sitemap and wireframes

The sitemap provides an insight into the website's information architecture. Building a sitemap prior to beginning with the actual designing phase helps you plan more effective website navigation.

Wireframing is the foundation of a well-designed website. It provides a framework for the website's visual design and content elements and acts as a guide to the final look of the website. The sitemap and wireframes are like the blueprint of your website that form the building blocks of the final website.

The wireframe and the sitemap also act as a guide to the content distribution and placement within the website. The design can be focused around the most important web pages and the content silos designed for efficiency to help attain the website objectives. There are a number of prototyping tools you can pick in order to design your website's wireframe.

3. Content strategy planning

Content is the raison d'etre for a website. The value it provides is the reason users decide to visit the website and the importance of a well thought out content strategy cannot be stressed enough.

Content development has to take place with an SEO strategy in place in order to ensure that the website content reaches its target audience. Well planned content strategy boosts a site's visibility in the search engine rankings. Search engine optimization using tools such as Google analytics is a must for content creation.

Step 3. Design and Develop

The design elements that are incorporated within the new website are largely influenced by the existing branding elements. The color scheme, logo design and other interactive design elements to be incorporated in the website depend on what the brand stands for. In the case of startups, the web designer has considerably more freedom to choose, but for already established brands, it is essential that the website design appears consistent with the existing branding.

"Good design is like a refrigerator – when it works, no one notices, but when it doesn't, it sure stinks." – Irene Au

The design hand-off to the development team is followed by the actual coding process. The platform, database, framework that you finalize within the planning stage all plays a role in translation of the designs into actual functioning web pages.

Both front-end and back-end development need to be focussed during the development phase with due diligence given to the incorporation of the website content into the design. The front-end coding involves compiling a HTML/CSS code and deploying it to run across the server.

Step 4. Conduct testing

Testing of the website is a critical step in the website design process and needs to take place concurrently with development. A complete end to end website testing consists of a number of different tests to be performed. These include functionality testing, usability testing, interface testing, compatibility testing, performance testing and security testing.

A thorough testing regimen ensures that the user does not experience any issues while browsing through your website or web application. Functional testing ensures that all the features incorporated within the website are validated against those mentioned within the functional specifications document. Usability testing focuses on the user's ease of use while browsing in terms of accessibility, searchability and usefulness.

Compatibility testing ensures that the website functions uniformly across a range of devices and operating systems including mobile devices and tablets. It is critical that your website undergoes a rigorous testing regimen and any issues and bugs discovered are resolved prior to its launch.

Step 5. Launch and maintain

Launching of the website involves its transfer from a local server to the live server. Web design is a tightrope between form and function and your design and development team needs to find the sweet spot of balance between the two, prior to the launch of the website.

The launch of the website isn't the end of the development journey. It is just another milestone that is achieved. The maintenance phase is what follows and is critical for the website to be successfully up and running.

The testing process is a continuous one with the site being constantly updated with new content. The web developers need to fix broken links if any, add and test new features and content and constantly update the existing website on the basis of user feedback and current trends to ensure stellar user experience.

How to Create Your First Online Course (And Why You Should)

Posted: 27 May 2019 08:00 AM PDT

Online courses are extremely popular today. In fact, e-learning revenue is expected to grow to $325 billion by 2025.

Being a teacher never might have crossed your mind when you started your business or blog, but creating an online course is a great way to present yourself as a leader in your industry. Tons of people online are searching for a way to learn something new or boost their skills and if you're an expert in something you could provide that for them.

Plus, launching a premium online course will give you an extra revenue stream for your business or blog – and it's passive income.

Check out these tips for how to create your first online course.

1. Decide what you'll teach.

Before you dive into creating an online course, you first have to decide what you'll teach. This choice might seem obvious to some business owners or bloggers. For instance, if you run a gardening blog, the obvious choice would be to create an online course to teach people how to garden. But, choosing what you'll teach isn't that simple. A lot of people when creating their first online course make the mistake of choosing too broad of a topic. So, instead of creating a course that teaches people how to garden (very broad), create an online course for designing beautiful flower beds.

You also have to consider your audience and what they're interested in, not just what you want to teach. Study your target audience and the visitors to your website. Take a look at what content you already provide and what's the most popular with them. Looking at your blog analytics will help you choose an online course topic that your audience will be excited to sign up for.

2. Choose the medium.

After deciding the topic of your first online course, next you need to choose the medium. The medium is the way you'll deliver the content to online learners. There are a number of different mediums you can choose for your online course including:

  • Downloadable PDFs and documents

  • Video

  • Audio

  • Slides

If your online course needs to include a lot of visuals or demonstrations, you may want to choose a medium like video. But, you can also insert images into slides or PDFs. If you don't need visuals at all, audio might be a better choice for you. There's no right or wrong answer when choosing a medium. Decide what will work best for you to display your content in the most engaging way and consider what your audience will enjoy as well.

3. Decide on a platform.

The next step is to decide on a platform. A platform is where you'll present and deliver the material of your online course. There are a number of different platforms to present your online course and most of them are pretty easy to manage and don't require any much technical experience at all.

A popular choice is self-hosted on your own website. This is a great option because all of the traffic for your online course will come to your own website so all of your online learners can see everything else you have to offer as well. You also have complete control of your content. You might think you need to be quite tech-savvy for this option but that's not true. There are a number of WordPress plugins that make it easy to create an online course on your own website such as LearnDash and LearnPress.

Another option is to choose an existing online learning platform like Udemy. An online learning platform like Udemy will take care of all the tech stuff for you and they already have a large user base. But the downside to this option is that they have a lot more control of your content and can even set the price of your online course as they see fit.

4. Market your online course.

Once you've completed the creation of your online course and chosen a platform for it, the next step is to wait for people to join right? Wrong. The next step is to market your online course. Many of your regular website visitors may not notice that you have an online course or understand why they would want to take it. So, you've got to let them know. First, start an email marketing campaign to promote your online course to your subscribers. Your subscribers are your biggest fans and they're the people most likely to sign up for your course right away.

Start marketing your online course on social media as well to widen your reach. Promoting your online course on social media will introduce you and your business to a whole new group of people that never knew you existed before. Remember, when marketing your online course let people know what's in it for them. If you show them how it will benefit them and solve their biggest pain points, they won't hesitate to join.

Creating an online course can be intimidating, but it doesn't have to be. With these tips for how to create your first online course, you can easily become an expert in your industry – and make extra income while you're at it.

Smartphone Buying Guide

Posted: 27 May 2019 04:10 AM PDT

Investing in high-quality phones for your employees can increase productivity and connectivity, especially if your business uses work apps to get things done. This smartphone buying guide is constructed with the needs and limitations of small business owners in mind, many of whom lack in-house IT talent and have limited experience buying hardware for groups. By working through the steps outlined here, you should be able to eliminate unsuitable options and find the right phones to help your team work efficiently.

Step #1: Choose a smartphone service provider.

The first step before buying most business technology is to set a budget. With smartphones, however, this is trickier, because the long-term costs are tied to paying for continued service as well as the hardware itself. Additionally, the choice of service provider is just as important as the choice of phone, since even high-end iOS devices are useless if there's no reliable coverage. For that reason, we encourage all small business owners to do their homework on service providers before buying any devices.

As you research the major service providers, pay close attention to not only the phones each provider supports, but also the small business plans it offers (many of which make buying for groups more affordable) and local coverage maps. Opt for a service provider that has a diverse offering of smartphones, solid service and affordable business rates.

These are the major service providers to consider:

  • AT&T
  • Google Fi
  • Republic Wireless
  • Sprint
  • T-Mobile
  • Verizon

Step #2: Shop iOS and Android devices.

For simplified mobile device management (MDM), we recommend small business owners choose one general operating system for all their mobile devices. Using different versions of Android across devices usually isn't problematic; however, managing both Apple (iOS) smartphones and Android phones is needlessly complicated.

Unless you have a compelling reason to choose iOS for your business, such as the need to run a specific business app that can only work on Apple products, Android is usually the better choice. There are far more types of Android smartphones, with more security features and a broader range of prices, so you'll have many more choices if you eschew Apple. If you choose to purchase iOS smartphones, you should expect to spend at least $750 per device at the low end, whereas solid Android smartphones can be purchased for as little as $130, up to $1,000 for the most luxurious phones. If these numbers seem shocking, remember that many service providers wrap monthly financing into the service fees, so it's unlikely you'll have to shell out the full cost upfront.

Step #3: Compare specific features.

At this point, you should have your service provider and operating system narrowed down, so it's time to look at specs to find the right smartphone for your employees. Not every spec will be vital to your purposes, so if you can't think of a use case for an OLED screen or headphone jack, don't let those details impact your purchase decision. 

Battery

For business users, battery life can be a make-or-break spec, as can charging time. When looking at phones, keep in mind that claimed battery life from the manufacturer is just that – a claim. It's best to compare the claimed battery life that a phone seller publishes to the battery life that review websites have recorded for the phone. Unless your workforce includes field workers who are deployed to remote locations for days at a time, a battery life of six to eight hours is sufficient.

Camera

Most midrange and higher smartphones have dual cameras: a front camera, or selfie camera, and a rear camera. Selfie cameras are especially important if your employees will be using their phones for video chats with clients. Reading reviews of smartphone cameras and looking at example images can be helpful, as can test-driving different phones in person. The reason we recommend this approach rather than simply comparing specs is that camera and lens specs are relatively complicated to learn about if you have no prior experience with cameras. In general, though, most phones in the $500-plus range have acceptable cameras for most standard business users.

Display

Even low-end smartphones have decent displays these days, and the display isn't going to make or break a mobile device for most business users. However, there are some exceptions. You should look at the display specs if you have field workers who will frequently be using devices in extreme lighting (or lack of lighting), graphic designers or other creative employees who will use their phones for design work, or another extenuating scenario that makes display a major priority. Many high-end iOS and Android devices have OLED or AMOLED screens rather than LCD screens, so look for those descriptors as well as high resolution, as determined by a dense PPI (pixels per inch) rate.

Ports and slots

A surprising number of new, luxury smartphones no longer have headphone jacks. If you aren't sure what types of ports and slots your employees will use on a regular basis, ask them before you make any buying decisions. Along with headphone jacks, microSD and SIM card slots are widely used, so inquire about those as well if you aren't sure. If you intend to buy smartphones without headphone jacks, you should factor the cost of wireless earbuds into your business hardware budget.

Processor

A lot has changed in smartphone processing in the last five years. Even low-end (under $300) and midrange ($300 to $500) smartphones have enough power for basic needs like texting, browsing the web and accessing apps. If you want top-of-the-line performance, you can opt for a $1,000 device with the fastest processor on the market, but it's certainly not the only viable option for business users. If most of the apps your employees will be using are widely used business apps like Evernote, Trello and Slack, standard processing power should be fine. If your employees will be using apps that involve processing huge amounts of data or advanced visuals (like VR, MR or AR), go for the high-end smartphones.

Security

Like design preferences, security needs vary from user to user. If you require business-class security features, you may benefit from selecting an established phone manufacturer, like Samsung. Samsung offers an add-on product called Samsung Knox, which is essentially a lightweight SaaS MDM solution. You may also opt for a third-party MDM solution, but for microbusinesses and solopreneurs, it may be easier to get everything from one provider. 

Storage

Most business users won't need a lot of phone storage, with the possible exception of mobile game developers or people who will be spending a lot of time downloading and storing large amounts of sensitive data or media on their phones. In general, though, the 64GB of storage built into most smartphones should be adequate.

Step #4: Buy smartphones for your business.

Hopefully, by this point, you've identified one or two devices that will work for most of your employees and you can buy smartphones for everyone on your team. Many SMB owners select multiple tiers of smartphones to suit the needs of their lower-level, midlevel and high-level employees. You may also want to consider investing in an MDM system to manage your business's hardware.

MDM is offered in a SaaS format for SMBs, and it's become much simpler and more affordable in recent years. It can help you do things like track employee activity and location, manage security, and protect lost and stolen phones by locking or wiping them remotely. For more information on MDM, check out our buying guide now.

Google Cloud Certifications and Career Guide 2019

Posted: 27 May 2019 04:00 AM PDT

Alphabet Inc. is the holding company that owns Google, along with a portfolio of other companies and assets. Among these many entities – including Calico, Sidewalk Labs, Chronicle, Dandelion, DeepMind, Google Fiber, Waymo and numerous others – Google is certainly first and foremost. By itself, even Google is no simple beast, though. It acts as the umbrella company for all of Alphabet's business with an internet focus or connection, including the Android mobile OS, YouTube and Google Search, among many other elements.

Given Google's enormous market recognition and mindshare, it may come as something of a surprise to learn that it is not the market leader in cloud services and delivery. In fact, Google didn't make Forbes' 2017 list of The Top 5 Cloud Computing Vendors. That said, the Google Cloud Platform (GCP) is a member of the top five such platforms, along with Microsoft Azure and Amazon Web Services, which routinely swap between first and second place. Oracle and IBM also place in the top five as well, often ahead of the Google Cloud Platform, depending on the metrics used to rank them.

Given all this, Google has powerful incentives to create and get behind a potent and well-regarded certification program for the Google Cloud Platform. Its efforts over the past two or three years are starting to pay some dividends, as an upcoming chart of job board search results will illustrate. But first, let's take a look at the Google Cloud Platform certification portfolio as it currently stands.

The Google Cloud Platform certification portfolio

The Google certification program has experienced significant growth since our last update. At our last update, Google offered three certifications, one at the associate level and two at the professional level. Today, Google offers one associate-level credential, five professional level certifications, plus a certification aimed at G Suite productivity and collaboration tools. Current certifications include:

  • Associate Cloud Engineer
  • Professional Cloud Architect
  • Professional Data Engineer
  • Professional Cloud Developer
  • Professional Cloud Network Engineer
  • Professional Cloud Security Engineer
  • G Suite certification

To earn a Google certification, candidates must pass a single exam. All exams are reasonably priced with professional-level exams costing $200, $125 for associate-level exams, and $75 for the G Suite exam.

Associate- and professional- exams must be taken at a Kryterion testing center. At present, the G Suite exam is remote. While there are no mandatory prerequisites for any certification, training is highly recommended, and Google maintains links to various training resources on the respective exam web page.

Google is also affiliated with Coursera, and candidates will find formal training available through Coursera as well. At least six months of experience working with Google Cloud Platform is recommended for associate-level credentials, and a minimum of three years of industry experience for professional-level certifications with at least one year in designing and managing GCP solutions.

Google Cloud Platform: Associate Cloud Engineer

The Associate Cloud Engineer (ACE) deploys applications, monitors operations and manages enterprise solutions. He or she can use Google Cloud Console and the command line to complete common platform-based tasks. An ACE also maintains one or more deployed solutions that use either Google- or self-managed services in the Google Cloud environment.

To qualify candidates, the ACE exams seek to assess these specific abilities regarding Google Cloud solutions:

  • Set up a Google Cloud Platform environment
  • Plan and configure a Google Cloud Platform environment
  • Deploy and implement a Google Cloud Platform environment
  • Ensure successful operation of a Google Cloud Platform environment
  • Configure access and security controls for a Google Cloud Platform environment

Google recommends two training courses: Google Cloud Platform Fundamentals: Core Infrastructure and Architecting with Google Cloud Platform: Infrastructure and are available in ILT and online formats. Both courses are also offered in affiliation with Coursera. Qwiklabs also offers Google Platform Essentials labs and a Cloud Architect Quest to support hands-on learning and experience.

It's absolutely correct to treat the ACE as the entry-level credential for the Google Cloud Platform. It's most likely to appeal to early-stage or mid-career IT professionals interested in cloud computing, who work with (or want a job with an organization that uses) the Google Cloud Platform. The ACE represents a great way for such people to learn and acquire the skills and knowledge needed to set up, deploy and manage a runtime environment that incorporates the Google Cloud Platform.

Google Cloud Platform: Professional Cloud Architect

The Professional Cloud Architect (PCA) enables organizations to make effective and efficient use of Google Cloud technologies. PCAs must develop a thorough understanding of cloud architecture in general, and the Google Cloud Platform in particular. Those who hold this credential can design, develop and manage dynamic Google Cloud Platform solutions to meet business objectives that are robust, secure, scalable and highly available.

To qualify for the PCA, the exams seek to assess these specific abilities regarding Google Cloud Platform solutions:

  • Design and plan a cloud solution architecture
  • Manage and provision a cloud solution architecture
  • Build cloud solutions that are secure and compliant
  • Perform technical and business analyses to optimize processes, procedures and policies
  • Manage cloud architecture implementations
  • Ensure that cloud solutions and operations are reliable and remain available

A slate of related curriculum elements for the PCA is available online through Coursera, or in the classroom, as candidates' needs and budgets may dictate. The same labs and quests offered for the ACE also apply to the PCA as well.

The PCA represents a more senior credential that's most likely to appeal to mid- to late-career professionals interested in filling a cloud architect role in an organization of some size. Thus, the ACE makes a pretty good precursor to the PDE (even though it's not formally required as a pre-requisite).

Google Cloud Platform: Professional Data Engineer

The Professional Data Engineer (PDE) focuses more on analyzing and using data stored in the Google Cloud Platform, rather than in designing, deploying or maintaining such environments as with the ACE and the PCA. As such, a PDE supports and facilitates data-driven decision-making based on collecting, transforming and visualizing data. Such professionals design, build, maintain and troubleshoot data processing systems. The PDE curriculum and exam puts particular emphasis on ensuring that such data processing systems are secure, reliable and fault-tolerant, as well as scalable, accurate, and efficient.

To qualify for the PDE, the exams seek to assess these specific abilities regarding Google Cloud Platform solutions:

  • Build and maintain data structures and databases within the Google Cloud Platform
  • Design data processing systems based on the Google Cloud Platform
  • Analyze data to support machine learning within the Google Cloud Platform
  • Model business processes for analysis and optimization within the Google Cloud Platform
  • Design for reliability and robustness, security and compliance within the Google Cloud Platform
  • Visualize data and advocate policy within the Google Cloud Platform

A different slate of courses is offered for the PDE, covered on the Data and Machine Learning page at Google Training. Candidates may choose among courses for three tracks for this credential: a data analyst track, a data engineering track and a data scientist track. In addition to a data engineering quest for hands-on PDE training, Google also offers an advanced, four-week machine learning advanced solutions lab at the main Google campus in Mountain View, California. A set of five practice exams may be purchased from Udemy.com for $24.99.

IT professionals interested in big data, data analysis, and/or machine learning are most likely to be attracted to the PDE. It's a great credential for those with strong data interests and proclivities anywhere in their IT careers, though a strong background and interest in mathematics and data modeling/analysis is strongly recommended.

Professional Cloud Developer

The Professional Cloud Developer (PCD) is ideal for candidates who use Google services, tools and recommended practices to design, build, test, and deploy highly available and scalable applications. Candidates should possess the skills necessary to successfully integrate GCP services and conduct application performance monitoring. While not covered on the exam, candidates need to be able to successfully use Stackdriver to debug, trace code, and produce metrics. Proficiency in at least one general programming language is also recommended.

The exam is focused on validating a candidate's ability and skill to use GCP services and practices in five key areas:

  • Designing cloud-native applications
  • Building and testing applications
  • Deploying applications
  • Integrating Google Cloud Platform Services
  • Managing application performance testing

On the certification web page, candidates will find links to an exam outline and sample case studies to help prepare for the exam. Recommended training includes the Google Cloud Platform Fundamentals: Core Infrastructure course and the Developing Applications with Google's Cloud Platform. Quests on application development for Java or Python and core technologies, such as Stackdriver, Google Cloud Solutions: Scaling Your Infrastructure, and Kubernetes solutions, are also recommended.

Professional Cloud Network Engineer

A Google Professional Cloud Network Engineer (CNE) manages and implements network architectures using GCP. In addition to GCP, successful candidates should be skilled in working with technologies such as hybrid connectivity, network architecture security, VPCs, network services, and the GCP Console command line interface.

The exam is comprehensive and covers related topics:

  • Designing, planning and prototyping a GCP network
  • Implementing a GCP Virtual Private Cloud (VPC)
  • Configuring network services
  • Implementing hybrid connectivity
  • Implementing network security
  • Managing and monitoring network operations
  • Optimizing network resources

Recommended training includes the Core Infrastructure course and Networking in Google Cloud Platform. If you're looking for hands-on practice, Qwiklabs offers labs for networking in the Google cloud and network performance and optimization.

Professional Cloud Security Engineer

Another newcomer to the Google certification portfolio is the Professional Cloud Security Engineer (CSE). An expert-level credential, CSEs are well-versed in industry security requirements, regulations, best practices, and security-related topics and technologies, such as identity and access management, data protection using GCP, configuring security at the network level, analyzing logs, managing incidents, and recommending organization-wide security policies. CSEs also possess the skills necessary to design, implement and manage secure infrastructures on GCP.

The exam validates a candidate's ability to:

  • Configure access within a cloud solution environment
  • Configure network security
  • Ensure data protection
  • Manage operations within a cloud solution environment
  • Ensure regulatory compliance

As with other certifications, Google provides a free exam outline and overviews plus in-depth discussions. In addition to the Core Infrastructure course, Google recommends taking the Security in Google Cloud Platform training and the Security and Identity Fundamentals Qwiklabs.

G Suite Credential

The G Suite cert aims at end users of Google's productivity suite. As such, it's likely to have only limited appeal for IT professionals, most of whom learn a productivity suite (MS Office, most typically) before they graduate from high school. The exam targets a candidate's ability to communicate, work with, and manage tasks using the G Suite productivity and collaboration tools, including Drive (cloud-based storage), Gmail (cloud-based email and messaging), Hangouts Meet (online meetings), Docs (cloud-based document creation and editing), Sheets (cloud-based spreadsheets), Forms, and Slides (cloud-based presentation software).

The certification web page contains links to a number of training options including Qwiklabs, self-paced G Suite lessons, applied digital skills, and the G Suite Learning Center.

Google Cloud Platform Certifications

For those who work around or with the Google Cloud Platform, the current certifications seem like a very safe bet for career and personal development. Given high demand, relatively low cost and a single exam for these certifications, the risk-reward ratio looks quite favorable. Be sure to check them out, if you work (or would like to work) in an organization that uses this cloud platform.

SBA Loan Default: 5 Things You Need to Know Right Now

Posted: 27 May 2019 04:00 AM PDT

1. The SBA guarantee doesn't pay off your loan the borrower

I once had a perplexed borrower call me.  He had missed a few payments on his loan, and the bank was dialing up the pressure. That part didn't surprise the borrower. The part that surprised him was that the SBA guarantee wasn't going to get him off the hook.

The borrower (incorrectly) assumed that the whole point of the SBA loan guarantee was to pay off the loan for the borrower if they ever default.  This is not how the SBA guarantee works. The guarantee reimburses the lender for their share of the loan, but it does not relieve the borrower of their obligation to repay the loan.

So, if you find yourself struggling to make payments, and your business is teetering, don't expect the SBA to get you off the hook. The situation will need to be addressed.

2. Now is not the time to hide

I know it's tempting, but avoiding the problem it is not the answer here. In the pantheon of poor advice about handling a defaulted SBA loan, the worst I've heard was to ignore it.  While it might be sound advice with other creditors, it's not for SBA loans. While it may be true that a credit card company will settle for less, SBA loans are generally the opposite.

If you settle while the SBA is still involved, settlements for 20-50% are common. For all the shade we throw at government efficiency and efficacy, I actually have found the SBA to be consistently reasonable when it comes to settlement. I can't say the same for the Treasury, who generally wants 70-85% of the loan balance in cash.

3. Settlements are possible (but not a right!)

When your business closes and you still owe a bunch of money, the SBA realizes that you can't get blood from a stone. This is especially true when you owe several hundred thousand dollars, and you've lost your life's savings trying to make the business work.

Settlements are not a right. The SBA will settle only when it makes sense to do so. They don't settle for the sake of settling. If you can afford to repay the loan, expect to pay it. 

There are a lot of factors that play into whether a settlement offer will be accepted by the SBA. I'm not going to get into all of them, as that's a much longer discussion that can be found here, but in general, the SBA expects your offer to bear a reasonable relationship to the amount they could expect to recover if they sued you and levied your assets.

In practical terms, they are most interested in your cash savings, real estate that contains equity and your income. There are certainly other assets they could go after, but those items are the low-hanging fruit when it comes to settlements.

4. Your home could be at risk

The good news is that the SBA encourages lenders to work with borrowers to keep their homes. This means that foreclosing on your home is typically a last resort.  I've found this to be true in practice. Most lenders are not hoping to kick you out on the street.

The bad news? If you can't find a way to make any sort of payment (lump sum or installments) after you've pledged your home as collateral, the lender will have no choice but to foreclose in order to recover some (or all) of the money they loaned to you (assuming there is equity in the home).

Some borrowers are astonished that foreclosure could happen, but from where I sit, it's something that every borrower should understand going in.  While it's true that you sign a blinding stack of paperwork at the closing, you are making some major commitments that demand your understanding and attention.  This is particularly true if you pledge your home as collateral. 

5. Your LLC, S-Corp, C-Corp, etc., doesn't make you untouchable

The whole idea of forming a legal entity to own your business is to protect you from certain liabilities. So many business owners are stunned to learn that these entities don't protect them if the business fails with a monster loan balance still due. 

Why? Because the SBA almost universally requires personal guarantees from business owners. They know that if the business fails, the legal entity typically won't have enough assets to cover the debt. This is specifically why the SBA requires the personal guaranty.

If you are reading this thinking that you didn't sign a personal guarantee, think again. In my 10+ years in this business, I've yet to see an SBA loan that didn't require personal guarantees from the business owner. The SBA requires anyone who owns 20% or more of the business but often will ask "key" people who are critical to business success to guarantee regardless of their ownership stake (and yes, they've seen the 19% trick!)

Conclusion

While it's never anyone's intent to be the former owner of a defunct business, the reality is that it happens every day to business owners all over the country. If you find yourself in the unfortunate position of closing your business and defaulting on your SBA loan, keep the above tips in mind. As I tell my clients, when you are in a position like this, there are no good options. You are simply trying to choose the "best" bad option.

Working on Memorial Day? You're in Good Company

Posted: 27 May 2019 03:56 AM PDT

If you have to trudge in to work this Memorial Day, you can take solace in the fact that you won't be alone.

40% of companies require workers to come in Memorial Day

Although 97% of employers have designated Memorial Day as a paid day off, more than 40% of companies still require at least some employees to work the holiday, according to a new study from Bloomberg BNA.

Along with Christmas, New Year's Day, Thanksgiving, Labor Day and July Fourth, Memorial Day is one of the six paid days off for nearly all U.S. workers, said Matt Sottong, Bloomberg BNA's managing editor of surveys and research reports.

"However, as with most federal holidays, where most Americans receive a paid day off, some will be required to punch the clock, particularly technical workers and public safety and security personnel," Sottong said in a statement.

The study revealed that nearly 20% of businesses have at least some members of their technical staff working on Memorial Day, and 15% of businesses said they'll have security and public safety workers doing the same.

In addition, 13% of organizations will have professional employees working, 12% will have managers on the clock, and 11% will make service and maintenance personnel report for duty. Just 10% of businesses will have sales and customer service employees working on Monday.

The good news for people who have to work the holiday is that their paychecks will be a bit larger for doing so. The research discovered that 85% of companies that have employees work on Memorial Day provide them with some type of extra benefit.

Specifically, 28% will give time-and-a-half pay, 20% will provide both extra pay and compensatory time, and 15 percent will pay double time or double time and a half.

Large companies are the most likely to have workers on the clock Monday. The study shows that 80 % of businesses with more than 1,000 employees will have at least some employees work Memorial Day, compared with just 31% of small businesses.

The study was based on surveys of more than 100 human resources professionals.

2017 SHRM study confirms Bloomberg BNA's findings

The Society for Human Resources Management conducted a similar study in 2017 on holiday schedules. This study found that while 90% or more companies close on major holidays, some organizations remain open. Major holidays include New Year's Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day and Memorial Day.

The bigger takeaway from this study, however, was how companies are treating employees who have to work on major holidays. Of the 415 HR professionals surveyed, 57% said their company offers some kind of financial incentive to employees who work on holidays. Of those organizations, 40% pay double time and 21% pay time and a half. Nineteen percent pay overtime, and 21% have another payment arrangement.

If some of your employees are working this Memorial Day, but not all, you should strongly consider some kind of payment incentive for these workers who still need to clock in. If your business falls in the 10% of organizations that treat holidays as normal workdays, incentive payment plans may not be necessary, but would likely still be appreciated.

How to treat employees on holidays

If you're a manager or small business owner who has the day off but have employees clocking in for a day's work at your business, there are a few tips to keep in mind.

1. Provide a payment incentive, if possible

Both studies indicated that the large majority of companies that require employees to work on holidays provide some kind of financial incentive for their time. If your business is financially stable and can handle paying your workers a little extra on a holiday, you should strongly consider doing so. Not only can it work as a thank you to your staff, it provides a little extra incentive for employees to clock in. While double time may be a stretch, there are other payment options like time and a half, overtime pay or a separate payment arrangement.

2. Say thank you

Think of a thank you as a gesture of good faith. Sure, your workers are employed by you and are obligated to show up when scheduled, but a show of thanks goes a long way in boosting morale and communicating appreciation. The most productive workers are those who feel valued at work. No one wants to work on a holiday, but by thanking your employees, you're showing that you value their willingness to go above and beyond expectations.

3. Be reasonable about productivity

Depending on what industry you're in, it's important to be reasonable with your workers about what exactly they're going to get done on a holiday. If it's a busy time for your business, it's important to set expectations. If it's not a busy time, but you still need a few employees onsite, it's equally important to manage expectations and prioritize important projects over maximum productivity.
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