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Survey Shows Republicans and Democrats Both Want to Work for Employee-Owned Businesses

Posted: 28 May 2019 11:42 AM PDT

  • Republicans (72%), Democrats (74%) and independents (67%) said they would prefer to work for an employee-owned company.
  • Among all respondents, just 19% said they would prefer to work for a company owned by investors, and 9% said they would rather work for a state-owned business.
  • Trump and Clinton voters in the 2016 election agreed on wanting to work for an employee-owned company.

Despite ideological differences, a newly released survey by the Rutgers Institute for the Study of Employee Ownership and Profit Sharing found something Democrats and Republicans agree on: Both prefer working for employee-owned companies.

Announced last week at the ESOP Association National Conference in Washington, the survey results reflected the responses of 1,500 working Americans. Professor Joseph Blasi, director of the Rutgers Institute for the Study of Employee Ownership and Profit Sharing, said the survey, which was conducted as part of the General Social Survey (GSS), stood out from previous iterations because it was "rare to find such a national consensus on anything."

"Americans disagree about a lot of things, but this is not one of them," Blasi said. "Democrat or Republican, female or male, black or white, union or non-union, a majority of respondents said they prefer to work for a company with employee share ownership."

Bipartisan support for small business and employee ownership

Blasi, along with professors Douglas Kruse of Rutgers and Richard Freeman of Harvard, first designed and administered this survey in 2002 and conduct it every four years. Last year, the three professors added politically based questions to the survey's employee share ownership questions.

According to the survey, a large majority of respondents said they preferred to work for an employee-owned company. More than 70% answered in favor of working for that style of business, while 19% said they preferred investor-owned companies and 9% said they preferred to work for state-owned companies.

When looking at those figures through a political lens, 74% of Democrats, 72% of Republicans and 67% of independents said they would prefer to work for companies operating under an employee share ownership model. When focusing on the 2016 election, similar numbers were found among Donald Trump and Hillary Clinton supporters, at 76.5% and 75.5% respectively.

The bipartisan support of the Main Street Employee Ownership Act that President Trump signed into law last year is an example of the popularity of employee ownership in both parties. With its passage, the law enables retiring business owners to sell their business to their employees through an employee stock ownership plan (ESOP) or worker co-op.

Employee ownership the growing option

Pro-employee ownership sentiment also factors into people's spending habits, as 38% of respondents said they were more likely to frequent a business with employee share ownership. Just 8% of respondents said they were less likely to buy goods or services from a similar company.

This year's survey also shows an increase in the number of private sector employees who have ownership or profit shares with their employers. According to the survey, 47% said they were given the option, which is a 2% increase from the 2014 figure of 45%.

Researchers revealed that the average worker has more than $75,000 in company stock. The average worker with ESOPs alone has a $134,000 stake. Data shows that the annual profit-sharing and gain-sharing bonuses are more than $13,000 on average.

Among the industries that offer employee share ownership, the information and communications industry has the highest concentration of companies. Meanwhile, nearly 20% of all blue-collar, clerical and sales workers also own some company stock.

Better job security in employee-owned companies

On top of the financial benefits workers can get from employee share ownership, researchers found that respondents felt more secure in their jobs.

"Employee share owners are six times less likely to be laid off," Kruse said. "Employee share ownership may help to stabilize communities and the larger economy by maintaining employment and consumer purchasing power."

Among respondents who reported working at least one year with an ESOP-based company, 0.6% had been laid off in the last year. That number stands in stark contrast with the 3.7% of workers laid off from companies without an ESOP.

How to Boost Brand Loyalty Using Email Marketing

Posted: 28 May 2019 11:00 AM PDT

A study by the market research firm Radicati predicts that by the end of 2019, there will be 3.93 billion email accounts – which is over half of the global population. Businesses around the world are competing for these consumers, with the hopes of turning them into lifelong customers. Here are four tried-and-true ways you can use email marketing to convince customers that your business is worth their time and money.

Start with a personalized welcome email

Personalization is, without a doubt, one of the best ways to build loyalty between a customer and a business. Consumers appreciate getting an email that they feel was tailor-made for them; greeting them by name, giving them personalized offers based on past purchases and including content links to pages that are relevant to their searches on your website.

We all know that first impressions are everything, so if you want to build a loyal fan base, you should always send out a welcome email to everyone who signs up for your mailing list. Consider that by simply adding a personal touch to your welcome email and those that follow, you can increase your open-rate by 26%.

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Segment your lead lists

After your initial email, you're going to want to segment your lead list so that your consumers are getting appropriate content at the right time. For example, if someone signed up for your website that sells pet supplies and stated that they are a cat owner, it wouldn't make much sense to send them to content about dogs.

Segmenting your lead list and measuring engagement metrics based on the content you send out is the best way to determine whether your segments are working, and can have a direct impact on customer loyalty. You're going to want to split-test different emails and types of content to see how you can fine-tune your email marketing campaign, which can lead to committed customers.

Integrate multiple chat options

When it comes to audience reach, no method surpasses traditional email. Social media is a close second contender, and there are various smaller options that consumers like to use when they are engaging with your business.

If you want to increase the odds that customers will stay loyal to your business, think about integrating multiple chat options through your direct business email, live chat software and social media messaging. The opportunity to seamlessly address concerns using any of these methods can keep your customer loyal because they know that no matter how they decide to contact you, you'll be there to help.

Provide value

The number one way to use your email marketing campaign to foster customer loyalty to your brand is by providing them with tangible value. There are various ways you can show your customers that you're committed to providing them with top of the line service and value for deciding to sign up for your mailing list. One of the most obvious ways is by sending them special discounts or promotions for being a loyal subscriber. If you suggest that they are loyal enough to deserve a discount or gift, it can help cement the idea in their minds that your company is worth their loyalty.

Similarly, you could send them exclusive content that pertains to their interests. This is an excellent opportunity for you to drip out relevant content to your lead segments. If we go back to the pet supply example, if you're dripping all of your cat-related content to the subscribers who opted for that information when they signed up for your list, and the rodent content for those who want that content, you're increasing the chances that they will stick around because you're giving them valuable information that is  relevant to their lives.

Conclusion

Email is the oldest and most complex forms of digital marketing. Business owners have successfully built brand loyalty using a mixture of all of the tips we mentioned here. If you're willing to take the time to make your customer's experience individualized and valuable, while providing them with multiple options to contact you if they have questions, you'll be well on your way to building a committed group of subscribers.

How to Start a CBD Business

Posted: 28 May 2019 11:00 AM PDT

  • Cannabidiol (CBD), a compound found in hemp and cannabis plants, is increasingly popular in dietary supplements.
  • The CBD industry is projected to hit $20 billion in sales by 2024.
  • Hemp and hemp CBD are federally legal following the signing of the 2018 Farm Bill.
  • The industry still faces challenges in advertising, banking and insurance.

Still relatively new to the mainstream, cannabidiol, more commonly known as CBD, is already becoming a household name. The purported therapeutic and health benefits of CBD, one of many compounds found in cannabis and hemp plants, has created quite a buzz. CBD oil has entered the marketplace in the form of tinctures, infused edibles, topicals and more. The growth of CBD oil products has been so immense, in fact, that industry analyst BDS Analytics predicts the U.S. CBD market will reach $20 billion in sales by 2024.

The potential of the CBD industry has prompted many people to ask how to start a CBD business. The industry is not without its challenges, especially surrounding the evolving legal landscape, but the opportunity is significant all the same. If you want to get involved in the CBD industry, you'll first have to understand a bit about the cannabinoid and the products it goes into.

What is CBD?

CBD is one of more than 100 cannabinoids, which are compounds found throughout the cannabis and hemp plants. The most famous cannabinoid is undoubtedly tetrahydrocannabinol (THC), which is responsible for the intoxication associated with the consumption of cannabis. CBD, however, does not produce an intoxicating effect; instead, it is often lauded as supposedly offering therapeutic and health benefits, though research into its potential medical applications is ongoing.

CBD products are generally created in several steps. First, the raw material needs to be cultivated and harvested. For example, if you plan on using industrial hemp to create your CBD products, you will either need to cultivate or purchase a large amount of the plant. From there, CBD oil is extracted from the plant using a variety of methods. Again, you can do this yourself or outsource the process to an extraction company. Once you have extracted the CBD oil, it can be sold as a concentrate or used to infuse a variety of products. Some of the most common CBD products on the market today include sublingual tinctures, infused edibles and topicals, like gels or creams.

Hemp CBD vs. cannabis CBD

CBD is found in both cannabis and hemp plants. CBD oil can be extracted from either plant and used to create CBD oil products. However, there is a key difference between hemp CBD oil and CBD products derived from cannabis: THC. Because industrial hemp contains less than 0.3% THC, it is considered legal under federal law to cultivate, harvest and process into finished products. Cannabis, on the other hand, contains more than 0.3% THC (often much higher levels) and remains federally illegal.

Hemp and cannabis are closely related; in fact, industrial hemp is actually Cannabis sativa L. The difference in name is mostly a function of a legal definition, which sets the threshold for THC content. The flowers of a hemp plant contain little to no THC, while the flowers of a cannabis plant (commonly referred to as marijuana) contain much higher levels of THC. The federal government considers marijuana a Schedule I drug under the Controlled Substances Act, making it illegal for interstate commerce, even as dozens of states legalize it for adult use. Industrial hemp, on the other hand, was recently removed from the Controlled Substances Act altogether, opening the way for its cultivation and harvest in the U.S. for the first time since 1937.

Full-spectrum CBD vs. CBD isolate

If you've done any research into the CBD market already, you've likely encountered the terms "full-spectrum" or "isolate." Depending on the extraction methods used, the CBD oil obtained from the plant might contain other cannabinoids and compounds found in the source plant. This is what is known as full-spectrum CBD. Full-spectrum CBD not only contains other cannabinoids found in the source material, but also compounds known as terpenes, which are responsible for creating the flavor profile, aroma and specific effects of the plant.

CBD isolate, as the name suggests, is a concentrate that only contains CBD and no other cannabinoids or terpenes. While the purity of CBD isolate might sound desirable, there is some evidence to suggest that full-spectrum CBD promotes an "entourage effect," that is, the compounds in a full-spectrum hemp extract work together to promote more significant effects. The entourage effect is still under investigation by researchers studying CBD and other cannabinoids.

What CBD products are available?

Now that you know a bit more about CBD and how it is extracted from the hemp or cannabis plant, let's take a look at some of the products currently on the market. The CBD industry is diverse and evolving, so you could likely find many more products infused with CBD oil beyond this list. However, these are among the most common types of products available today:

  • Sublingual tinctures: A sublingual tincture is CBD oil that generally comes in a small bottle with a dropper. Sublingual products are ingested by placing them under your tongue and allowing the oil to absorb.
  • CBD edibles: CBD edibles are a rapidly growing sector of the industry, including baked goods, candies and foods. CBD edibles have faced significant regulatory scrutiny from the U.S. Food and Drug Administration but remain commonly found products on the market today.
  • Vape concentrates: Vaporizer concentrates, such as CBD oils and waxes, are another common product. These can be used with an electronic device to vaporize and inhale the CBD product.
  • CBD topicals: CBD topicals include gels, creams and sprays for aches and pains. These products are placed directly on the skin to target a localized region of the body.

There are many varieties of these products and others you can find out there, and as we learn more about CBD, the industry is coming up with new products all the time. If you're looking to start a CBD business, you will have a wide range of product types to consider selling. 

How to start a CBD business

Starting a CBD business includes all the hard work and effort of launching any other company in addition to the uncertainty of a shifting regulatory landscape (and all the issues that go along with it). However, in a fledgling industry projected to undergo explosive growth, the heavy lifting today could be well worth it tomorrow.

Cory Slovik, owner of Core Roots CBD, started his company after experiencing firsthand what he said were the healing properties of the cannabinoid.

"I used to be a pro snowboarder … and I was always sore, my muscles were constantly in agonizing pain. I tried CBD, and it helped me tremendously," said Slovik. "Then, years later, cannabis … started coming to the forefront, and there was research and data backing up everything I felt on the mountain."

Slovik soon launched Core Roots CBD, seeing a business opportunity and a way to help other people treat their pain. He said starting a CBD company is like any other business, plus a bunch of added steps.

"It's like any other business; there are steps and procedures you need to go through like getting insurance and writing a business plan," Slovik said. "But in this space, you have got to double- and triple-check everything, know your market and jump through regulatory hoops."

[If you're looking for more details on how to start a business and all the steps you need to take, see our step-by-step guide to get started.]

Understand your legal obligations

Just because the 2018 Farm Bill federally legalized industrial hemp and, by extension, hemp extract, like CBD oils, doesn't mean there aren't significant regulatory considerations surrounding the industrial hemp industry. The 2018 Farm Bill essentially removed CBD from the federal Controlled Substances Act and the oversight of the Drug Enforcement Agency. Instead, it placed governance of the hemp industry and CBD oil in the hands of the Food and Drug Administration (FDA).

Currently, the FDA is still devising regulations, leaving the CBD industry in a sort of gray area. So far, the federal agency has signaled that marketing CBD as having health benefits will not be tolerated. It has also initiated a crackdown against CBD infused foods and beverages in some instances.

Further complicating the regulatory landscape is the 2017 approval of the CBD-based pharmaceutical Epidolex, an epilepsy medication that was approved by the FDA. Since CBD is a main ingredient in an FDA-approved drug, using it in food products without FDA approval could be illegal. Clearer guidance is sorely needed for CBD businesses to operate in compliance with federal regulations.

"I think the FDA does have to step in, and they will," said Slovik. "I expect a lot of changes to labels; we're seeing a lot of businesses out there now using the term 'hemp extract' instead of CBD, or they're not thinking of health benefits so much. Many companies are doing different things, but no one really knows [what the regulations will be] until it happens."

Understanding your legal obligations and playing it safe is key in a highly scrutinized industry. While CBD businesses everywhere await clearer regulatory guidance, it is important not to craft your marketing strategy around the supposed benefits of CBD. It's also important to stay apprised of new developments as the FDA moves forward on crafting new regulations.

Market and sell your products

Marketing and selling CBD products can be tricky. While the passage of the 2018 Farm Bill liberalized the industry a little bit (CVS and Walgreen's now carry CBD products, for example) it is still difficult to sell CBD products on major online platforms like Amazon or eBay. Likewise, social media advertising is virtually nonexistent; paid ads for CBD products risk account suspensions or bans, so all your growth must be driven through organic content that falls under the guidelines of each platform.

"In today's day and age, if someone is looking to sell a product, the normal avenues are Amazon, eBay, Alibaba or paid ads on social media," Slovik said. "In this industry, it's way, way, way different. You can't do any of those things."

To successfully advertise and sell your CBD products, you will have to be creative. Establishing your own e-commerce store or carrying your products in a brick-and-mortar location is a must. Marketing your product with an organic search strategy and customer loyalty programs is always safer than engaging in paid advertising. And, of course, every market is a bit different so do your research and understand your local and state laws.

Gaining a competitive advantage

The key to gaining a competitive advantage with staying power in the CBD industry is to develop a high-quality product that will withstand the coming scrutiny of both regulators and educated consumers. If you want to differentiate yourself from other CBD businesses, it's key to provide third-party lab testing results to validate the quality of your product, Slovik said.

"We want to be more transparent by putting QR codes on all our bottles so anyone in the store can use their phone to get lab results right then and there," Slovik said.

In addition, Slovik said pursuing certifications like USDA organic, Good Manufacturing Practices and FDA facility registrations are important moves to provide consumers with confidence in the quality of the product they are buying.

Overall, Slovik said the formula for success is simple, even if the process is complicated.

"I would recommend double-, triple-checking everything. Know there will be changes. Research as much as you can, and recognize what the future opportunities are by thinking outside the box," he said.

Key challenges facing CBD businesses

The CBD and cannabis industry faces unique challenges that other industries don't. Most of these challenges relate to the regulatory environment and, as federal agencies like the FDA detail specific rules and guidelines, things should stabilize. For now, though, if you want to start a CBD business, you should be aware of these major considerations:

  • Banking: Access to reliable banking services can be complicated due to the fluctuating regulatory landscape. Many banks are hesitant to do business with CBD and cannabis companies, fearing significant risk or burdensome oversight. Frequently, CBD businesses are forced to switch banks or experience the abrupt closure of a merchant account, which can seriously disrupt operations.
  • Insurance: Finding affordable insurance for a CBD businesses is another major challenge. Prices remain elevated despite the legalization of industrial hemp, Slovik said, as the industry takes time to catch up to the developments. Education remains a key obstacle.
  • Payment processing: Similarly, payment processors present high fees and other challenges to CBD businesses. Slovik said Visa recently cut off all CBD businesses, leaving him capable of only accepting MasterCard and Discover for payments.
  • Access to capital: Banks and other lenders are also reluctant to fund CBD companies, viewing the industry as too risky without clear regulatory requirements. So far, the CBD industry has relied on bootstrapping, outside investors or alternative lenders to find the growth capital it needs.

Each of these challenges will likely be cleared up as more concrete regulation appears, but in the meantime, CBD businesses must remain adaptable and well-informed. Changes in the industry come on a day-to-day basis, so preparing backup plans ahead of time could save you a great deal of time and money should the worst come to pass.

CBD is a huge business opportunity – if you approach it correctly

The growth opportunity in the CBD industry is unparalleled. The cannabis industry is one of the fastest growing in the nation, and CBD is one of the quickest growing sectors of that industry. Especially following the passage of the 2018 Farm Bill, hemp CBD products are proliferating at a fast rate. If you want to start a CBD business, you're not alone.

"This industry has been more or less illegal for the past century," said Slovik. "At this point, there's major, major momentum. Many people are trying to break in, so don't follow the herd. You want to be a leader."

A combination of due diligence and creativity will set your business up for success in the CBD industry. Now is the time to get in on the ground floor and build a company that will last, but differentiate yourself with a quality product that stands out from the crowd.

How to Run a Successful One-Person Business

Posted: 28 May 2019 11:00 AM PDT

The advice makes sense, but what happens if you're the only person within your business? If you're running a one-person business, you don't have to hire a team of employees and delegate to find success. Depending on the industry, you can create successful and long-lasting one-person businesses.

Building a one-person business that finds sustained success can be challenging, though. There are countless obstacles you must face alone, which makes the process of developing a solid business harder. These obstacles can be overcome, however. To understand how to make it as a one-person business, we reached out to entrepreneurs across the country. They shared tips on how to run a one-person business from their experiences.

Before we dive into those tips, it's important to note that none of these pointers are absolute facts. Every situation is different, and not every rule applies perfectly to your business. We have found, however, that most people we spoke to about starting and developing a one-person business normally follow a similar trajectory. This doesn't mean you have to follow that plan, but this framework tends to lead to success.

1. Start your business on the side.

An overwhelming majority of people we spoke to mentioned starting their one-person business as a side venture, at least at first. They recommended doing this primarily for financial reasons. Instead of quitting your job and losing a major income source, try to start your business on the side until it gains traction. Use a few hours before or after work to build the business and gain clients or customers. If you do decide to quit your job, you'll want a good bit of money saved up to grow your business. It's going to take time to build a one-person business and quitting your job can make finances a challenge.

Starting on the side also sets you up for success when you decide to leave your current situation. If you develop a client base over a year or two while also working a full-time job, you'll bring in money on the side and be ready to grow an already established brand once you take the venture on full time. For financial security, starting your one-person business as a side hustle is often the way to go.

Beginning as a side project also gives you time to iron out the flaws in your business plan and work through struggles without it drastically altering your income. Starting your business on the side reduces some of the stress that comes with running a one-person business full-time.

You may even find that starting a business brings unexpected challenges that you aren't interested in overcoming. A few months of pursuing a business idea might cause you to re-evaluate your career path or develop new business ideas in different sectors. The main benefit of starting your business on the side is the flexibility to make mistakes and fail without losing your only source of income.

2. Find the right business structure.

The seemingly obvious choice for a one-person business is a sole proprietorship, which are the simplest forms of business available. There's a solid amount of flexibility with a sole proprietorship, as you can be an independent contractor or operate a small business in a more traditional sense. Hypothetically, if your side business consists of you writing marketing copy for businesses on a freelance basis, a sole proprietorship is the logical choice.

On the other hand, sole proprietors are responsible for all the company's profit and debt. This can become an issue as your business expands. If you get into a lawsuit, your assets are on the line and can be held responsible, rather than the business entity. Potential lawsuits become more relevant the more customers you serve. You'll also want to keep an eye on what self-employment taxes you might have to pay.

"I would advise forming an LLC or incorporating the business," said Deborah Sweeney, CEO of MyCorporation. "Many entrepreneurs often elect to form a sole proprietorship for their small business. This entity is perfectly fine, but it does not provide the owner with liability protection like a limited liability company (LLC) would. If an entrepreneur decides to start a one-person business as a sole proprietor, it's important that they know they will be held responsible for everything – foreseen and unforeseen alike – that could impact the business."

Different business ideas lend themselves to different business structures as well. If you think your business might find itself facing lawsuits, it might behoove you to incorporate the business, like Sweeney suggests. For example, if you form a one-person company that helps other businesses collect debts, you might be more likely to face legal ramifications than an e-commerce business selling art.

One-person businesses may eventually add team members and change from a sole proprietorship or any other legal structure to a general partnership, limited partnership or an LLC. Starting as a sole proprietorship doesn't mean you're locked into that structure throughout your entrepreneurial journey. Being a successful one-person business doesn't mean you can't eventually become a multiperson organization.

Whatever you decide, it's important to at least consider the type of legal entity you want your business to be. For more information on the different types of business structures, visit our guide on choosing the best legal structure for your business.

3. Prioritize your tasks.

Time management is arguably the most important aspect of running a one-person business. Without the ability to delegate tasks to employees, it's critical that one-person businesses don't waste time. If you waste time, nothing gets done.

"My main piece of advice is that you have to prioritize your day and your schedule," said Mark Aselstine, founder of Uncorked Ventures. "You're going to get pulled in literally every direction and emails, phone calls and text messages all seem incredibly important and everyone wants an immediate response. But, ask yourself, do they actually require one? For me, I ended up time blocking, so I could focus on the long-term health of my business, instead of getting caught up in the various requests that we all get for immediate need type stuff."

Organizing your tasks requires both a short and long-term view. It's important to block out times of your day to work on different tasks, and it's also worthwhile to take a broad approach when attacking projects. This is especially true if you start your one-person business as a side project. If you're only spending two to four hours per day on your business, you don't want to waste that time checking emails or going through tedious tasks. You want to make substantial progress on major projects.

To do this, it's a good idea to set goals for months in advance. If you're starting from scratch, set target dates for creating a website and social media accounts. Set dates for when you might want to have your first five clients. By setting goals, you give yourself something to work toward. In typical organizations and corporate jobs, employees have managers keeping them on track. In a one-person business, it can be easy to fall into a trap of making little progress without anyone putting you back on the right track. It's wise to take a long-term goal setting approach when working alone. Hold yourself accountable to those goals.  

"I work in 90-day cycles," said Isabelle Paquin, a Pinterest marketing strategist. "Each quarter, I establish goals and two or three projects I'll be focusing on. Then it's a matter of having the discipline to put blindfolds on and focus on implementation excellence."

Long-term goal setting helps prioritize your tasks.

On the flipside, one-person businesses shouldn't go at projects alone. Putting your head down and getting work done is necessary, but getting help from outside sources like freelancers can help your one-person business as it grows. Getting help makes achieving your long-term goals more realistic and allows you to focus on other aspects of your business.

"My advice to someone starting out is to know what you don't know and surround yourself with great people, not employees, [but] other small businesses and independent contractors who can provide the services that you can't," said Diane Jones, president of DJ Public Relations. "For example, I am a public relations professional that offers a variety of services, including website development, graphic design and video production. However, I personally don't do all those things. I work with an amazing website developer and graphic designer and a video production company who creates the final product while I manage the process. It's a win-win for both of us and the client ends up with the product they want."

4. Build a community of supporters.

With so much work on your plate, you'll need a support system. It's going to be emotionally draining to work long hours to build your business without anyone else on your team. Running a one-person business can be mentally fatiguing. To combat this, you need to connect with like-minded individuals., even if it's outside of work.  

"Honestly, just being 'alone' was the one thing that I struggled with, not having a team to chat with about the daily stuff," said Kathryn Selby, president of Selby New York. "If you are someone who thrives with a small team – like me – try to find activities outside work where you can get that community feel, like group fitness classes or dinner clubs – those were two of the things that I found to be the most helpful. It gave me the human interaction while not having to deal with the annoying day-to-day office drama."

In addition to connecting with peers outside of work, it's important to connect with business peers. Here are some of the ways to get advice and reduce business loneliness:

  • Join the Business.com community – Our site's community is home to over 100,000 community members and includes an active discussion forum. If you have any questions, post them to the forum and you'll likely receive a response in a few days or less. You can also answer questions and help provide guidance to other businesspeople looking for advice and suggestions.
  • Reach out to local peers – Even if they aren't running a one-person show, reach out to local business owners and entrepreneurs. Speaking to experienced businesspeople in your area will build connections and give you a group of people you can turn to for advice. You can also share your advice and perspective with them, making it a beneficial two-way relationship. Connecting on LinkedIn with businesspeople in your area is an easy way to quickly build a network.
  • Attend SBA events – The Small Business Administration hosts regional events throughout the year. Search for events in your area and attend ones that interest you the most. You'll meet other people in your area who are also building businesses and experiencing the same highs and lows as you. You'll increase your network and learn during the events – many of which are free.

Regardless of the method you follow to connect with others and build a community of supporters, it's important that you branch out and meet people who can help you along the way. As backward as it sounds, it's unwise to run a one-person business alone.

"I think it's helpful to remember that you're never alone," said Bridget Burnham. "You are part of many communities who want to see you succeed. Don't forget to reach out and share openly about your triumphs and struggles. It's amazing how resources and leads appear when you tell people what you want and need."

5. Understand your business's growth limitations.

The world's largest and most successful businesses have teams of hundreds, if not thousands of people. You might be able to create a multimillion-dollar business alone, but it's unlikely. You're going to need help if you want to build a massive enterprise. If you're OK with a smaller operation that brings in significantly less revenue, then a one-person operation might work in the long run. It's also worth noting that vacations or illnesses can severely hamper production of a one-person business, while larger teams are more adept at handling sudden change.

"It is possible to sustain success as a one-person business," said Grace Joyal, co-founder of Emboss Communications. "Where the buck will stop though is with limitation. You can only grow so big without a team. So if you find that limit – the limit that you can get to on your own and can maintain – you can certainly sustain that as long as you want. But now you will have to weigh your definition of success. If you're making enough money to cover your lifestyle, and your goals aren't to build any level of empire, you might be completely content to stay on your own. But if your definition of success involves anything more than that, you'll need to start considering having a team."

In addition to the five tips above, you should consider the following when forming a one-person business:

  • Write a business plan – Get your ideas on paper and plan your strategy. Figure out who your customers are and how you're going to market to them. What value do you provide in the industry? Don't go into a new business venture blind. Set up a plan of attack for the best chance of success.
  • Meet with a business adviser – There are plenty of ways to find business advisers, including meeting with small business development center counselors in your local area. Talking to an adviser can give you some guidance on how to go about starting your business. Advisers are especially helpful if you don't have a team of knowledgeable peers to bounce ideas off.
  • Be patient – Several of the entrepreneurs that shared thoughts about starting a one-person business emphasized the importance of staying patient. A one-person operation will likely grow slower than a business with a team of multiple people. Stay the course and keep moving forward. The most successful one-person businesses take time to develop.

How to Run a Business in New York

Posted: 28 May 2019 10:17 AM PDT

  • New York businesses contend with high taxes and a complex regulatory landscape.
  • The proximity to New York City provides excellent access to capital and skilled labor.

There are more than 2 million small businesses in New York state, which employ 4 million people. These small businesses make up 99.8% of all businesses within the state and employ more than half the state's workforce. In 2018, New York's unemployment rate was about 4.7%, slightly higher than the national average, but still healthy. The share of workers employed by small businesses underscores their importance to the state's economy: small businesses created 113,528 net jobs throughout the state.

In 2018, New York's statewide GDP was $1.676 trillion, which ranked third in the nation. In 2018, the state's GDP grew by 2.1%, slightly slower than national growth, which stood at 2.9%. The top five industries in New York are finance, insurance, real estate, rental and leasing; professional and business services; government and government enterprise; educational services, healthcare and social assistance; and information.

How does this economic landscape translate to the fortunes of small businesses throughout the state? And what unique challenges do New York's small business owners face? Business News Daily got in touch with some of the state's entrepreneurs to find out.

Complex regulations

New York state has a wide range of regulations that tend to be progressive and designed to support employees. While not inherently negative, more regulations mean more preparation is required on the part of businesses, which often comes with additional legal costs.

"[New York regulations are] very challenging and require great legal counsel," said Greg Peters, CEO and co-founder of BetterPT. "We invested in resources very early on to ensure that our vision is achievable and scalable. We are constantly evaluating the regulatory landscape in this ever-changing environment."

Some business owners have found that working with state agencies can illuminate the path to compliance, reducing the regulatory burden. Establishing a strong relationship with the relevant regulatory bodies that impact your business is a must when operating in New York.

"Overall, the regulatory landscape is both visible and reasonable to follow. For example, we've worked with the Department of Transportation over the years and never felt that our line of communication was too intrusive or delayed," said Sharone Ben-Harosh, founder and CEO of FlatRate Moving.

High taxes

One key challenge several entrepreneurs we spoke to cited was New York state's relatively high taxes. While taxes are a necessary cost of doing business anywhere, New York state maintains a tax code that often defers to the highest relevant calculation to businesses. It also includes several metrics by which a business must calculate its tax bill, sometimes making the process confusing. 

"The business tax code in New York is burdensome, which makes it difficult to do business as an entrepreneur," said Warren H. Cohn, CEO of HeraldPR and Emerald Digital. "Taxes for small and medium businesses are extremely high, which often pushes small businesses out of the cityscape."

As a result, Cohn said, he is looking to expand in southern locations like New Orleans or Miami, where he said it is easier and cheaper for businesses to operate.

New York maintains both a corporation franchise tax, which applies to C-Corps and S-Corps, as well as an LLC filing fee. LLCs are known as "pass-through entities," meaning any income derived from an LLC "passes through" to the owner and would be included on their personal income tax return.

The business income base tax for the state of New York is 6.5%, though certain businesses might qualify for a reduced 5.5% rate. In addition, businesses could be subject to a capital base tax or fixed dollar minimum tax. State law typically requires corporations to pay whichever is highest.

"New York is known for a business tax code that is fairly complicated and costly," said Peters. "This largely relates to the estimation of corporate taxes, which generally trend toward the most expensive alternative."

Competitive labor market

New York is a populous state on the east coast, well known for its cities and economic activity. As a result, there are plenty of businesses hungry for talented employees. The unemployment rate isn't extremely low, but it remains below 5%, contributing to a competitive atmosphere for the best job candidates. To meet this challenge, small businesses are developing more attractive compensation packages and other benefits for employees in a bid to better attract, recruit and retain top talent. 

"As a result [of the competitive labor market], we're investing more resources into recruitment and benefits to ensure that we have enough employees year-round," said Ben-Harosh. "Unlike most moving companies that only hire during the warmer summer months, we keep our drivers throughout the entire year to ensure that we retain our talent."

Luckily, New York is also home to many top colleges and a diverse population of skilled workers, meaning that while skilled labor is in high demand, there is a large pool of potential employees from which to recruit.

"Even aside from students, there are a ton of individuals who migrate here from other countries who are talented," said Matt LeBris, CEO of 1B Branding. "Both while in corporate America and as an entrepreneur, I have never had an issue with finding talent."

Proximity to New York City

A major benefit of doing business in New York state is the proximity to New York City, especially for businesses located in the southern part of the state. The economic activity generated by the world's business capital generally spills over into neighboring areas, creating an opportunity for businesses to find more customers and offer services that support city-based enterprises.

"Location-wise, there's a big opportunity in the Westchester area as a result of more people moving away from New York City," said Ben-Harosh. "This is especially true for higher-earning individuals who also demand a high-quality moving service."

Cost of living

The cost of living is generally high throughout New York state, meaning employees require higher compensation in order to live. It also means the cost of doing business will be higher, as goods and services are significantly steeper than elsewhere. Nowhere is the cost of living higher than in New York City, however, statewide, New York is more expensive than the national average in terms of groceries, housing, transportation and healthcare.

As of December 31, 2018, New York state's minimum wage increased to $11.10 per hour. That rate is scheduled to rise again on December 31, 2019, to $11.80. By the end of 2020, the state minimum wage will rise again to $12.50 per hour. And, of course, in some towns and cities, the minimum wage is even higher. New York City, for example, recently raised its minimum wage to $13.50 per hour for businesses with 10 or less employees and $15 per hour for businesses with 11 or more employees. On December 31, 2019, all businesses in New York City will be required to pay employees a $15 per hour minimum wage.

Frequently asked questions

These frequently asked questions are commonly raised when starting a business in New York. These answers will help you to file the necessary documents, pay the appropriate fees and understand the basics of starting a business in New York.

Why start a business in New York?

Despite the challenges related to taxation and regulatory compliance, New York state offers access to a strong consumer base with significant disposable income. Further, there are numerous lenders and investors who can help entrepreneurs start and grow their businesses.

How do you incorporate in New York?

To form a corporation in New York, you must first select a corporate name that includes the terms "incorporation," "incorporated," or "limited." A name must be reserved for 60 days by filing an application, the cost of which is $20.

From there, you will need to file a Certificate of Incorporation with the New York Secretary of State. This certificate can be filed online or sent in by mail. The cost of filing the Certificate of Incorporation is $125, plus a tax on shares if applicable.

How many businesses are in New York?

There are more than 2 million small businesses throughout New York state, which employ 4 million people. Small businesses comprise nearly 99% of all businesses in the state. In New York City alone, there are 200,000 businesses.

How do you get a business license in New York?

Many companies require a business license or permit in order to operate in New York state. To determine which licenses or permits you need, visit the NYS Business Wizard. You can typically apply for many licenses online for a small fee.

How much does it cost to get a business license in New York?

Depending on the type of business you are operating, the cost of your business license can vary greatly. Some permits are as low as $25, while certain licensure fees are several hundred dollars. Learn more about the licenses and permits your business is required to have (and their costs) at NYS Business Wizard.

When are New York sales tax returns due?

New York sales and use tax returns are by March 1 for annual filers. Some businesses, though, are required to file quarterly returns, including those that have taxable receipts, purchases subject to use tax, and rents and amusement charges that amount to less than $300,000 in the previous quarter. Quarterly returns must be filed in four periods: March 1 through May 31, June 1 through August 31, September 1 through November 30, and December 1 through February 28 or 29.

How do you file sales tax returns in New York?

Sales and use tax returns are essentially summaries of business activity. These returns must include information regarding gross sales, nontaxable and exempt sales, taxable sales, purchases or uses subject to tax, credits you claim on your return, sales tax, use tax, any special taxes and current information regarding your business.

For annual sales tax filers, you must fill out state Form ST-101, the New York State and Local Annual Sales and Use Tax Return. To learn more about your sales tax obligations, visit the New York State Department of Taxation and Finance website.

What are the requirements for small business insurance in New York?

In New York, any small business with employees is required to carry workers' compensation insurance and disability benefits insurance. If your company owns a vehicle that it uses for business operations, you must also carry auto insurance.

Beyond these legal requirements, certain types of insurance might be needed to sustain operations. For example, landlords might require liability coverage or renters' insurance. Lenders might require you to obtain life insurance, business interruption insurance or some other kinds of protections.

Can you write off business insurance?

Business expenses, including insurance, can be deducted from taxes if they are considered both "ordinary" and "necessary." Businesses that are required to carry insurance because of state laws and regulations would likely be able to deduct the cost of the required insurance from their tax bill. To be certain about what insurance qualifies for a tax deduction, consult with a certified public accountant.

Does your business qualify for a health tax credit?

The Small Business Health Care Tax Credit is a tax break extended to small businesses that provide their employees with healthcare coverage. Eligible businesses are those with fewer than 25 full-time employees and average wages that are less than $50,000 per year.

The healthcare tax credit, which is part of the federal Patient Protection and Affordable Care Act, provides a maximum credit of 50% of the healthcare premiums paid by an eligible small business, or 35% for tax-exempt organizations.

Resources for small businesses in New York

If you're a small business owner in New York looking for resources to help you move forward, here are a few organizations you might want to learn more about.

New York SCORE

SCORE's volunteer business professionals and expert "mentors" give counsel and guidance to entrepreneurs looking to start or expand their businesses. The services are entirely free and volunteer-driven. Follow the link to locate one of the more than two dozen SCORE centers near you.

New York State SCORE

Empire State Development's Small Business Division

The state government's resource center for entrepreneurs offers a number of resources, from technical assistance in starting or expanding a business to financial assistance programs for qualified businesses. The office exists to connect small business owners with programs and information they might not be aware they can take advantage of.

Empire State Development

U.S. Small Business Administration (SBA) District Offices

The U.S. SBA offers financing and grants, as well as consultations and counseling services. There are also opportunities to apply for federal government contracts through the SBA and avenues for obtaining assistance in the wake of natural disasters.

U.S. SBA District Office for New York

New York Small Business Development Centers

New York hosts two dozen development centers for small business. Each is dedicated to supporting the development and retention of small business, helping entrepreneurs do everything from craft business plans to navigate the state's tax code. You can find your region's small business development center at the link below.

New York SBDC Network

How to Increase Your Social Media Reach

Posted: 28 May 2019 07:00 AM PDT

Marketers spend a lot of time creating content. Sharing articles, infographics, videos, and case studies on social media is essential to increasing your brand awareness and website traffic. Previous research from Social Media Examiner revealed that 89 percent of marketers reported that their social media efforts have generated more exposure for their businesses. The question is, how do you get your audience to see your posts?

If you don't have one already, you'll need a strategy for amplifying your social media reach. The good news is you can extend your influence without having to spend money on advertising. From recycling content to cross-posting, there are a number of budget-friendly ways to stretch your social media reach organically.

Cross-post on various channels

Don't limit posting your content to just one social media channel. While you don't need to use every single network, it's important to publish content across multiple platforms to increase its exposure. Each network is different, so be sure to consider whether or not the content format is ideal for the platform. Instagram, for example, works best for sharing beautiful, high-quality images, while Facebook is suitable for posting an article or video with engaging dialogue.

Posting on a variety of social media channels takes time, but thankfully there are tools that can help automate this process.

Engage with followers

Posting on social media shouldn't be a one-way conversation. It's critical to interact with your audience directly to encourage participation. A high level of engagement extends the reach of a post. Do you ask your audience questions from time to time? Do your posts include some type of call-to-action? Asking questions and providing calls-to-action prompts followers to interact with your content.

Involve your audience by posting a poll on Facebook. Real estate agents, for example, can create a poll showing pictures of two different kitchen styles and ask followers to vote on their favorite look. The audience will be excited to give their input and curious to check in on the results. Find what interests your audience based on your particular market.

You don't have to share business posts only. For instance, you can have fun with your followers by posting cute pictures of dogs and cats for National Pet Day. Your audience will find these types of posts relatable and engaging.  

Remember to reply to all comments. Keep the dialogue going to encourage other followers to participate in the conversation and show you care. According to a survey by digital agency Wunderman, 79 percent of consumers say they want brands to actively demonstrate that they understand and care about them before they make a purchase.

Repurpose content

Don't create and share one piece of content and forget about it. Look for ways to recycle it and use it again. You can repurpose most pieces of content by converting them into different mediums. Different types of content perform better on various platforms, so experiment with numerous formats. For example, you might take some data from a previous article and convert it into an infographic. Or transcribe an existing video interview with an industry expert and make it into a new blog post.

Maybe you have a blog on your website where you post articles. You can expand your reach on social media by republishing the blog posts on LinkedIn or Medium. Posting existing content on these platforms shows industry expertise and helps build your audience. You'll also save time and get more ROI from your content.

Mention other brands and influencers

Some of the most engaging social media posts mention other people and brands. Whether you acknowledge an expert in your industry or a local business, discussing someone else notifies them that you've featured them, opening the door for engagement. For example, if you tag a brand on Twitter, there's a good chance they may "like" your tweet or respond. You may even get a retweet. Interacting with other businesses and people on social media is an excellent way to increase engagement.

Promoting other companies not only informs your audience, but it's a nice gesture that the other business may reciprocate. If a business shares your post or gives you a shout-out, you'll gain exposure to a new audience. Be on the lookout for opportunities to share information about other brands and businesses.

Amplifying your social media reach doesn't have to be an expensive undertaking. There are numerous tactics, aside from advertising, you can use to increase your exposure and boost brand awareness organically. Marketers should consider the time it takes to create content and dedicate as much time executing amplification strategies to extend their social reach.  

How to Repurpose Old Content to Boost Marketing Results

Posted: 28 May 2019 06:00 AM PDT

The end result is that they spend less time agonizing over blogs and social media posts and instead are able to focus their efforts on engagement and sales.

The benefit of repurposing content

Some people are unsure about repurposing content because they fear Google penalizes for duplicate content, or that customers will notice similar content across multiple platforms.

However, when you repurpose content the right way, you have nothing to fear. Search engines love to see valuable, updated content that serves your audience. And it's unlikely your YouTube followers will care that you posted similar content to Instagram.

In fact, the benefits of repurposing far outweigh any of the risks. When you repurpose right, you'll benefit in three big ways.

  1. SEO boost: Search engines want to see that you're updating your old content. It shows that you care about improving the user experience. You can get more SEO juice to an old blog just by updating it for 2019.
  2. Save time: Everybody is strapped for resources. You don't want to spend 10 hours a week writing blogs that few people will read? Repurposing requires less time and gives you amazing results. It also means you don't have to crank out new content all the time so you can focus on other things.
  3. Get more views: You can reach new audiences on a variety of platforms by repurposing your content. Repurposing content allows you to get more traffic to your website, pull more customers into the funnel, and ultimately see a spike in sales.

How to repurpose your content

Repurposing takes little time and reaps big rewards. Here are four steps that will allow you to find the right content, audience, and repurposing method for your brand.

  1. Locate your best content: The first step is to review Google Analytics data to find your best-performing content. Adjust the date range to find your most successful content. You can compile a list of your best content at the one month, six months, and one year mark. You should be looking at total page views, social media shares, and comments to determine your most successful content.
  2. Tie the content to your audience: All brands have a variety of customers. These customers have different needs, assumptions, and pain points, all of which you can address with buyer personas. Tie each piece of successful content to one of your buyer personas. This helps you write less generic content and more relevant, specific content that urges someone to take action. The more specific your targeting, the better your repurposed content will resonate with your audience.
  3. Choose a platform: Base where to share your content on your buyer personas. Where are your customers when they decide to buy from you? Go where they are, so they'll actually see your content. For example, if you target Gen Z customers, your content will do better on Instagram or YouTube. Choose three to five channels where your target audience will see the content. 
  4. Map out a plan: This when it is time to jazz up your old content based on your desired audience and platform. f you have a blog post, consider repurposing it as an infographic, a video, a blog roundup, social media post, PPC adds, an ebook, a podcast or an email.  Of course, you'll need to beef up the original post, too. Update it to be more valuable and insightful. Add an infographic to the blog or include reader testimonies. Data and authoritative quotes will also boost your authority and the content's value.

If you have an old YouTube channel, don't let that video content go to waste. Instead, give those old videos new life as:

  • A mini video series. Chop up a one-hour video into smaller, 15-minute videos for easier viewing.

  • A podcast

  • A blog. Simply transcribe the audio and post it on your website.

  • Social media videos

  • A video course

  • A webinar

What's important is that you repurpose content in a way that will be engaging, relevant, and convenient to your audience. After all, if your audience isn't interested, the content won't succeed.

You invest a lot of energy into your content. Don't let your blogs from 2015 disappear into the ether. Get the most out of your content investment by repurposing it.

You don'' need to reinvent the wheel every time you write content. Instead, get more views, engagements, and sales with content that works for you again and again.
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