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Baby boomers have begun delaying their retirement. And this creates challenges for small businesses. But it creates opportunities too.

The experience baby boomers bring to the table is undeniable, but employers are overlooking them. And according to a new study by iHire, 53% of respondents say they have experienced age discrimination. In addition to age discrimination, 44.5% also say their generation is unfairly stereotyped by today’s employers.

As older workers delay their retirement and compete with everyone else, the challenges are undeniable. But there is also great opportunity, especially for small businesses. The experience and knowledge of these employees can be used to guide new startups so they can avoid the many pitfalls of the business world.

This is exactly what Steve Flook, iHire’s president and CEO pointed out in the press release. Flook said, “As the talent shortage and tight labor market continue to complicate hiring, employers should put their bias aside and consider what seasoned, eager, reliable, and highly qualified baby boomer candidates can offer.”

The purpose of the survey is to find out the job search experiences and expectations of baby boomers. To that end, iHire surveyed 1,265 baby boomer job seekers in April 2019 across 56 industries.

Hiring Baby Boomers

The biggest problem organizations face now is the lack of qualified applicants. According to the 2019 State of Online Recruiting report, 53.5% of employers say this is their predicament.

At the same time, baby boomers are actively and passively looking for new employment opportunities. In the survey 40.8% said they are unemployed and looking for a job. According to iHire, this is a sign of growing interest by baby boomers to go back to work, and it can also mean there is an uptick in the number of layoffs.

No matter the reason, they want to work. And they don’t lack confidence when it comes to their qualifications. The majority or 82.9% feel they are very qualified or over qualified for the jobs they are applying for. Only 5% say they are somewhat or not at all qualified.

In addition to getting hired, baby boomers are looking for solid compensation. Most, if not all, are looking to pad their retirement savings. In the survey 73.5% chose fair salary/compensation as one of their primary criteria from an employer.

Beyond a good salary, they want health benefits, work/life balance, 401(k) options, and flexibility. The flexibility is telecommuting and setting their own schedule. And this is where a small business can seize on the opportunity of hiring a baby boomer.

While it may not be possible to hire someone with so much experience on a full-time basis, it can be possible as a part-time or freelancer. This will allow baby boomers to stay in the workforce longer, and small businesses to use their expertise as needed.

The Opportunities

The iHire report concludes by saying baby boomers are retiring faster than employers can fill the positions they leave behind.

For those who don’t want to retire, they offer organizations solutions to the hiring problems in the current employment market. With the right hiring strategy, businesses can have a good balance of young and older employees to create the perfect working environment.

There are far too many intangibles older workers bring to the table. Businesses who are able to see this and capitalize on it will experience surprising growth and productivity.

Image: Depositphotos.com

This article, “53% of Baby Boomers Say They’ve Experienced Age Discrimination in the Hiring Process” was first published on Small Business Trends

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Miami and Los Angeles are just two of the major U.S. cities where minority entrepreneurs are thriving. But would the nation’s capital have been at the top of your list?  Or Orlando?

Our 2019 rankings of the Best Cities for Minority Entrepreneurs identify the top 10 cities for startup owners of color and minorities.  The cities in the top 10 rankings may surprise some people, but perhaps not other people

Our rankings are based on our latest research of U.S. Census data. The rankings reflect the percentage of entrepreneurs to the overall population in metropolitan areas of the United States. We also identify factors such as industry clusters, lifestyle, infrastructure, costs, workforce availability and a thriving startup community.

Read on for the Best Cities for Minority Entrepreneurs, 2019 edition.

Best Cities for Minority Entrepreneurs

1. Miami

Sometimes called the capital of Latin America, Miami is also a capital for minority entrepreneurs. 62,992 of them work in the metro area. That makes them 1.03% of the total population working mainly in the retail trade sector.

But opportunities in the city go way beyond a single market. Miami is also a major international trade center. And Miami International Airport and PortMiami provide two of the nation’s busiest ports of entry. The city is also a hub of Spanish language media.

2. Los Angeles

The second largest city in the U.S., also hosts the second largest percentage of minority entrepreneurs, with 114,509 operating in the metro area, or .86% of the population. They work largely in healthcare and social assistance.

Entrepreneur and business consultant Rieva Lesonsky, the CEO of SmallBizDaily and GrowBiz Media, thinks the ranking is well deserved. “California is populated by so many people who moved here — from other states and other countries, making many of us comfortable with taking on risk. Los Angeles’s official name is literally translated as the City of Angels, and has long attracted people in pursuit of a dream. While “making it in Hollywood” is not your typical goal, it still symbolizes the concept that dreams can come true.”

3. San Jose

At the heart of a major techno hub, the metro area is also home to 16.705 minority entrepreneurs. They make up .84% of the population and work mainly in the professional, scientific and technical services.

Far more than just another technology center, San Jose has been called “Capital of Silicon Valley” for its cultural, political and economic influence in the region.

4. San Francisco

The Bay area is more than just a center for culture and tourism. It also provides a home to minority entrepreneurs. After all, 34,409 of them, (making up .73% of the population) work there, mainly in the accommodation and food services sector.

The San Francisco metropolitan center also happens to be the home base for some of the best known technology brands on the planet. Think Craigslist, Google, Facebook, Dropbox and FitBit, to name a few.

5. New York

New York City is famous for many things, but perhaps the number of minority entrepreneurs should be one of them. There are 131,340 to be exact, (about .65% of the population) mostly working in the retail trade.

New York City’s ranking makes sense to local entrepreneurs like Ramon Ray, who is the self-employed author of Celebrity CEO, and a speaker and business evangelist, says, “New York is a melting pot of so many cultures and ways of life with a huge small business support system.” And Ray says this is one of the reasons the city has become a center for minority entrepreneurs.

In addition, Ray also points out that New York is a media capital. “You just can’t get the media coverage opportunities you get here anywhere else.”

6. Washington, D.C.

Who knew the nation’s capital would also be a hotspot for minority entrepreneurs? 35,011 of them work there. That’s .57% of the population. And most work in professional, scientific and technical services.

Washington D.C. is a growing and diversified economy. But it shouldn’t be too surprising that tourism is second only to government-related businesses as the city’s most important industry. The city is believed to draw more than 18 million visitors annually generating more than $4 billion.

7. San Diego

Renowned for its world famous zoo, the metro area should also be known for the 16,286 minority entrepreneurs who operate businesses there. These entrepreneurs make up .49% of the San Diego metropolitan area’s population. And they work largely in the healthcare and social assistance industries.

The city is also home to many major defense contractors which make up one of its major industry clusters. Major companies in this cluster include General Atomic, Cubic and NASSCO.

8. Houston

This Texas metropolis also is big with minority entrepreneurs — 32,609 of them. They make up .48% of the cities population serving mainly in the retail trade.

Pete Detlef, Managing Partner of 24 Hour Translation Services, sees opportunity as limitless in  Houston.  “As the fourth largest city in the U.S., Houston was named the most diverse city in America this year and is the new great melting pot of culture, language, ethnicity, income, education, religion and industry.  As a measure of diversity, there are over 145 languages spoken in Houston.”

Detlef says this diversity creates a fusion of arts and thinking like nowhere else leading to the development of many successful businesses in the metropolitan area.

9. Atlanta

The home of the Atlanta Braves is also home to 26,653 minority entrepreneurs. That represents .46% of the region’s population. And most work mainly in retail trade.

John Lawson, CEO, ColderICE Media believes he understands the reason for the ranking. “Atlanta is one of the best cities in the country for entrepreneurs. However the cherry on top for minorities is that this city is 54% African American. That should say it all! Can you name another city where the makeup and leadership is so populated with minorities and people of color? A primarily African American city that is thriving and moving up in opportunity this rapidly? NOPE…Atlanta is an ecosystem where you and your business dreams and goals can thrive.”

10. Orlando

It may be known for its theme parks but the metropolitan center is also home to 11,207 minority entrepreneurs (.46% of the population) working mainly in the healthcare and social assistance industries.

As Barbara Weltman, President of Big Ideas for Small Business, Inc. explains, “Orlando is the center of Florida. For years it’s been associated with entertainment: Disney World and Universal Studios. That’s still true. But now it’s also a hub for tech and is located close to the Space Coast where things are really heating up. There’s been a huge population influx, from those relocating from the north to Puerto Ricans coming after Hurricane Maria. The state government here is supportive of small business. There’s no personal income tax on owners and various other business taxes (e.g., rent taxes) have been going down in recent years. There’s just a great buzz that this is THE place to be!”

Methodology for Top 10 Cities for Minority Entrepreneurs

If you are a minority entrepreneur thinking of starting a business or just got one off the ground, and you are located somewhere else, no worries.  There are plenty of opportunities all over this great country. But if you want a support system of minority entrepreneurs for mentoring, any of the above cities would be good ones to locate in or near.

This Best Cities for Minority Entrepreneurs ranking is based primarily on our proprietary analysis of the U.S. Census Bureau’s Annual Survey of Entrepreneurs (ASE) and Annual Estimates of the Resident Population for Incorporated Places of 50,000 or More.

Cities were ranked on the percentage of entrepreneurs in each category rather than the number of entrepreneurs. However, other data we reviewed based on information available to us included:

• Population
• Industry clusters
• Lifestyle
• Workforce
• Costs
• Infrastructure
• Other startups nearby

Check out our infographic below for a shareable summary of the best cities for minority entrepreneurs.

This article, “Best Cities for Minority Entrepreneurs” was first published on Small Business Trends

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Women-owned businesses are on the rise. Just look at the numbers. The number of women owned small businesses with employees increased by 2.8 percent, according to the latest U.S. Census Bureau’s Annual Survey of Entrepreneurs. But where are these women entrepreneurs?

Our rankings of the best cities for women entrepreneurs provide answers. Our 2019 best cities rankings identify the percentage of entrepreneurs to the overall population, along with other factors.

In our latest research, we delved into the numbers to see which metropolitan areas of the U.S. have the highest concentrations of women entrepreneurs. Our original research examines the number of women entrepreneurs working in the area and how that number compares to the total population. We also identify factors such as industry clusters, lifestyle, infrastructure, costs, workforce availability and a thriving startup community. Read on for the Best Cities for Women Entrepreneurs, 2019 edition.

Best Cities for Women Entrepreneurs

1. Miami

Though it may be known primarily for its memorable architecture and beautiful beaches, Miami is also a haven for women entrepreneurs. There are 36,925 women entrepreneurs in the Miami metropolitan area making up .60% of the total population, working in the professional, scientific and technical services.

With an average temperature of 77 degrees and 249 days of sun each year, Miami fosters a fun and relaxed lifestyle. Casual attire is the norm among many entrepreneurs – imagine going to work everyday in shorts, sandals and light shirts. Add the lack of a state income tax, and this city is a magnet for women entrepreneurs.

2. Denver

The Mile High City of Denver is also a summit of women’s entrepreneurial achievement. With 15,102 women entrepreneurs, that’s a full .53% of the population running their own businesses.  Many of these women-owned businesses are in the professional, scientific and technical services.

With industry concentrations like aerospace and bioscience, Denver may be the perfect destination for entrepreneurs seeking to find clients in these industries. And with a median annual income of over $76,000, the area has plenty of affluent professionals to target if you sell consumer products and services.

Copious outdoor activities contribute to an enjoyable lifestyle. Skiing and hiking in the Rocky Mountains are popular, as are biking and horseback riding. The city itself always offers something to do, with shopping, major league sports, art galleries, museums, fine dining and more.

3. St. Louis

St. Louis is known as the Gateway to the West. And women entrepreneurs are also pushing frontiers as 13,619 of them run businesses in the city making up .49% of the city’s population, many working in healthcare and social assistance.

St. Louis has a long history of promoting women entrepreneurs. A number of womens’ entrepreneur groups, such as Brazen Women Entrepreneurs (formerly Prosper Women Entrepreneurs), offer support and resources.

4. Los Angeles

The city of angels shelters 63,850 women entrepreneurs under its wings. But that represents only .48% of the city’s population, with many working in healthcare and social assistance.

Entrepreneur and business consultant Rieva Lesonsky, the CEO of SmallBizDaily and GrowBiz Media, thinks the ranking is well deserved. “The fact the Los Angeles region is one of the best cities for women entrepreneurs is not surprising to me. Women in LA have long held powerful positions in the media and movie industry — Mary Pickford was one of the most powerful women in the nation and that was in the early part of the 20th century, before women even won the right to vote. Pickford once said, ‘You may have a fresh start any moment you choose, for this thing that we call ‘failure’ is not the falling down, but the staying down.’ That’s how I feel about LA — there just seems to be endless possibilities,” Lesonsky says.

5. Portland

The city’s motto is “Keep Portland Weird.” But the city is also keeping women entrepreneurs busy with 11,492 of them doing business in the metro area, .47% of the city’s population, working mainly in the professional, scientific and technical services.

Portland is home to many small businesses including reputedly the largest independent bookstore in the world and a large number of local breweries. But what’s more, the city posts a “new business welcome kit” offering a simple way to view all relevant fees or licenses the city may require, information on how to contract with the Portland Bureau of Transportation and even a graffiti removal program to cut down on the costs of vandalism.

6. New York

The Big Apple has a big group of women entrepreneurs — 95,731 in all but just .47% of the total population — in the New York metropolitan area, working in other services excluding public administration.

The city’s ranking doesn’t surprise entrepreneurs located in the greater New York City area.

Ramon Ray, who is the self-employed author of Celebrity CEO, and a speaker and business evangelist, says, “New York is a melting pot of so many cultures and ways of life with a huge small business support system.”

Additionally, Ray points out that New York is a media capital. “You just can’t get the media coverage opportunities you get here anywhere else.”  Women entrepreneurs who are looking to build their personal brands and business brands could have advantages in New York City.

7. Seattle

With businesses like Microsoft and Amazon based in the metropolitan area, it’s no surprise Seattle  is a haven for women entrepreneurs. The presence of large companies tends to create an ecosystem of alumni who branch out on their own and in turn serve the large companies and their thousands of employees.

Seattle has 17,620 women entrepreneurs or .46% of the population. The largest industry groups you will find these females entrepreneurs in are the professional, scientific and technical services.

Seattle also has excellent infrastructure to support today’s entrepreneurs. For example, it is one of the most gigabit-ready cities, offering gigabit broadband internet service to residents and businesses.

8. San Francisco

It may be known for its Victorian architecture and iconic Golden Gate Bridge, but San Francisco should also be known for women entrepreneurs blazing new trails. The metro area is home to 20,813 of them. That’s .44% of the region’s population.

Between 1846 and 1852, thousands streamed into the city creating a boom town thanks to the discovery of gold in California. Today, thousands of women entrepreneurs seek their own fortunes in the city.

9. San Jose

Located in California’s Silicon Valley, the area is already known for tech entrepreneurs. And there are women entrepreneurs too. There are 8,639 of them, or .43% of the population, working mostly  in healthcare and social assistance.

The city is home to many successful tech firms including Cisco Systems, eBay, IBM, Hitachi and Adobe Systems. Also, its international airport serves 8.3 million travelers a year.

10. San Diego

Though known for its warm climate, San Diego is packing some other heat too. The metro area is home to 14.086 women entrepreneurs, making up .42% of the area’s population. They work mainly in the professional, scientific and technical services.

San Diego is also known for its lifestyle centered around good weather, food and fitness. Several significant business clusters nearby attract women entrepreneurs. This is particularly true of those working in the tech or B2B space.

Business owner Eric Strate, the founder of Web Design San Diego, explains, “San Diego is also home to a large military contingent, and biotech and tech companies like Qualcomm.  So, our city is growing, and there are plenty of opportunities for business-to-business or business to consumers.”

Methodology for Top 10 Cities for Women Entrepreneurs

If you are a woman thinking of starting a business or just got one off the ground, and you are located somewhere else, no worries.  There are plenty of opportunities all over this great country. However, if you want a support system of female entrepreneurs for mentoring, any of the above cities would be good ones to locate in or near.

This Best Cities for Women Entrepreneurs ranking is based primarily on our analysis of the U.S. Census Bureau’s Annual Survey of Entrepreneurs and Annual Estimates of the Resident Population for Incorporated Places of 50,000 or More.

Cities were ranked on the percentage of entrepreneurs in each category rather than the number of entrepreneurs. However, other data we reviewed based on information available to us included:

• Population
• Industry clusters
• Lifestyle
• Workforce
• Costs
• Infrastructure
• Other startups nearby

Check out our infographic below for a shareable summary of the best cities for women entrepreneurs.

This article, “Best Cities for Women Entrepreneurs” was first published on Small Business Trends

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Your office environment can make a big impact on the success of your business. Conventional wisdom says that you need to rent a traditional office space when starting out. But recently, starting a business from home has become more of a possibility.

How to Set Up an Office: Home or Away?

For solopreneurs or those who are able to work remotely, setting up a home office can be an affordable alternative. And there are plenty of tech tools that you can use to stay in contact with your team, clients and customers. But having a separate office outside your home also has its merits.

Each entrepreneur and each business is different. So you need to carefully consider your specific needs and the pros and cons of each option before making the leap. Here’s what you should know about choosing between a home office and a separate office space.

Pros of a Home Office

Home offices are affordable and convenient, which can be especially beneficial for new businesses and solopreneurs. You can avoid paying rent, covering utilities and stocking your office with furniture, equipment and supplies. In fact, you might be able to get by with just a laptop and an internet connection, which many people already have. This can allow you to save up to make your business more financially viable in the future, at which point you can reserve a dedicated office space. Or you could simply choose to run a lean business without a lot of expenses long-term.

Additionally, working from home allows you to avoid long commutes and lets you easily get back to work at any time of day. Whenever you’re at home, you have the ability to access your office to write down a new idea or take a quick conference call.

However, even if you have a team, you have the option of working remotely from home and reaping those benefits. There are tons of communication and collaboration platforms available today that can help you communicate with team members and clients from your home office. You can use Slack to stay in touch with everyone, Skype to voice or video chat with people and Trello to manage specific projects.

Cons of a Home Office

However, home offices aren’t practical for every type of business. They don’t give you a convenient place to take in-person meetings or deal with customers. And some types of businesses require equipment or warehouse space that you simply cannot fit in most homes.

Even if you’re a solopreneur or a business owner who could theoretically manage things remotely, home office work might not be for you. Having your work so easily accessible can make it difficult to balance work and home life. You might face too many distractions and see your work suffer. Or you might find yourself working constantly and see your home life suffer. Additionally, it’s not the best solution for extroverts who like interacting with people on a daily basis, though you might be able to combat this by going to a coffee shop or coworking space a few days per week.

Pros of a Separate Office

Some businesses, particularly customer facing businesses like retail stores or repair shops, absolutely must have a dedicated space. Not only do you need the space for practical reasons, but having a separate office also appears more professional to customers or clients and gives your business some extra credibility.

However, even some businesses that don’t get regular visits from customers can benefit from a separate office. If you have a team or are thinking of hiring, having a space where you can all work together can be beneficial for collaboration. It may also help you keep employees on track and hold people accountable for their work.

For solopreneurs, a separate office might be right for you if you have productivity issues when working from home. You’ll likely deal with fewer distractions in a separate location. And it can also help you keep a regular work schedule, rather than constantly overlapping your work and home life.

Cons of a Separate Office

The main downside of renting a dedicated office space is the cost. Not only do you need to rent the space, but you also need to pay for utilities, furniture and equipment. If you have a team, all those costs get even higher.

More established businesses can usually afford this expense. And many find that the benefits are well worth the cost. However, newer businesses might find it to be out of reach, or might simply prefer to save the money early on until renting a dedicated space becomes absolutely necessary.

Image: Depositphotos.com

This article, “Do You Need a Home Office or Separate Office for your Small Business?” was first published on Small Business Trends

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According to the AARP, there will be 78 million Americans 65 years and older by 2035. And many of them are not going to be retiring.

With longer and healthier life expectancies, older Americans are becoming maturepreneurs. And the Maturepreneur Today Virtual Summit is going to help you leverage your life long experiences to be a better entrepreneur.

On June 11, 2019, you can attend the all-day virtual summit and get valuable insights from leading industry experts.

Allen Gutierrez, former Associate Administrator of the Office of Entrepreneurial Development, U.S. SBA and General (Ret) Stan McChrystal are just two of the speakers.

Other experts in business and marketing along with strategist, consultants, mentors and more will also be present.

Tracks on legal and financial issues, marketing, franchise ownership and steps to business success will be held.

The summit will end with a panel discussion and Q&A to wrap up the day.

You can register by clicking the red button.

Register Now

Featured Events, Contests and Awards

Maturepreneur Today Virtual Summit
June 11, 2019, Online

Maturepreneur Today is holding its full day virtual event on June 11, 2019. The summit is for new, existing and budding entrepreneurs in their 50’s, 60’s and 70’s. Visit our website to view the entire list of renowned speakers. #MaturepreneurToday

Listening to the Voice of the Customer
October 16, 2019, Chicago, Ill.

Led by veteran product development and market research experts, this course will introduce Voice of the Customer (VOC) market research and teach you to use it to accelerate innovation in business-to-business markets. The workshop uses a lively, interactive format with numerous hands-on activities and practice exercises to build skills and will also expose you to the latest applications of these techniques in areas such as machine learning and journey mapping.
Discount Code
SMALLBIZ ($100 Off)

More Events

• Breaking Through: Taking Your Consulting Business to New Heights
  May 29, 2019, Waltham, Mass.
• The Brand Marketing Summit West 2019, San Francisco, USA
  May 30, 2019, Burlingame, Calif.
• ProSeed
  June 01, 2019, Singapore
• DigiMarCon South 2019 – Digital Marketing Conference & Exhibition
  June 05, 2019, Houston, Texas
• Small Business Expo 2019 – NEW YORK CITY (June 5, 2019)
  June 05, 2019, New York, NY
• TECHSPO Los Angeles 2019
  June 12, 2019, Los Angeles, Calif.
• Predictive Analytics World Industry 4.0
  June 16, 2019, Las Vegas, Nev.
• Predictive Analytics World for Business – Las Vegas – June, 2019
  June 16, 2019, Las Vegas, Nev.
• Marketing Analytics Summit Las Vegas 2019
  June 17, 2019, Las Vegas, Nev.
• Digital Growth Unleashed Las Vegas 2019
  June 17, 2019, Las Vegas, Nev.
• TECHSPO Chicago 2019
  June 20, 2019, Chicago, Ill.
• DigiMarCon Midwest 2019 – Digital Marketing Conference & Exhibition
  June 20, 2019, Chicago, Ill.
• Entrepreneurs Cruise 2019
  July 07, 2019, Cape Canaveral, Fla.
• DigiMarCon Cruise 2019 – Digital Marketing Conference At Sea
  July 07, 2019, Cape Canaveral, Fla.
• New York School of Real Estate Finance
  July 15, 2019, Online
• SkySprout Summit – Columbus Marketing Conference
  July 16, 2019, Columbus, Ohio
• World Blockchain Roadshow
  August 26, 2019, Multiple Cities
• TECHSPO Sydney 2019
  August 28, 2019, Sydney, Australia
• DigiMarCon Europe 2019 – Digital Marketing Conference & Exhibition
  September 12, 2019, Amsterdam, Netherlands
• DigiMarCon Asia Pacific 2019 – Digital Marketing Conference & Exhibition
  September 18, 2019, Singapore

More Contests

This weekly listing of small business events, contests and awards is provided as a community service by Small Business Trends.

You can see a full list of events, contest and award listings or post your own events by visiting the Small Business Events Calendar.

Image: Depositphotos.com

This article, “Maturepreneur Virtual Summit Teaches Techniques for Older Entrepreneurs” was first published on Small Business Trends

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The biggest question on most would-be business owners’ minds is, “Where will I get the money to start my business?” There are plenty of options — but some are better than others.

Startup Funding Sources

Here’s an overview of the good, the bad and the ugly ways to finance your new business.

Friends and Family

Friends and family are the number-one source of startup financing for most small business owners. In a Small Business Trends survey in 2017, 26% of respondents said they considered friends and family their most reliable source of capital. After all, if your friends and family don’t believe in your business, who will?

You can either borrow money from your friends and family or make them investors and give them a stake in your business. If you borrow money, make sure you treat it as a loan just as you would with a loan from a bank or credit union. Draw up loan documents (you can find templates online) and commit to repaying the money on a set schedule with interest.

Getting an investment from friends and family may seem like a better idea than borrowing because you don’t have to pay the money back. But keep in mind that if your friends and family members become shareholders, they may feel entitled to take a bigger role in directing your business then you’re comfortable with. Do you really want Uncle Joe telling you what to do with your website? Of course, if you do have a friend or family member whose business experience and advice could be valuable, taking them on as an investor could be a good idea.

Personal Credit Cards

Nearly two in 10 (19%) business owners in our survey think credit cards are a reliable source of financing. However, as a startup business owner, your business does not have any credit history of its own, so if you plan to use credit cards as a financing method, you’ll have to use your personal credit cards at first.

Using credit cards for business financing can be risky if you don’t manage your debt carefully. The best way to use credit cards is to pay for things you know you’ll be able to sell for a profit, which you can then use to pay off the credit card balance. For instance, if you’re starting a landscaping business and you need to buy gardening tools, plants and seeds for your first job, you could charge the purchases on a personal credit card and use the proceeds from the job to pay it off. Be aware, however, if you don’t get paid before the credit card payment is due, you could end up incurring interest and get in over your head.

Personal Savings

Using your personal savings to start a business allows you to avoid going into debt or giving away any equity in your business. Investing your own money can also be a good motivator for success: when you’re playing with your own money, you may be more likely to plan carefully and less likely to take unnecessary risks than you would if someone else is footing the bill.

If you don’t have personal savings you can tap into, look for ways you can raise cash to put towards your business. For instance, if you have two cars, could you sell one for startup capital? Perhaps you have a collection of vintage Star Wars figurines or some old savings bonds you could convert to cash. Of course, you can also delay your startup a bit and build up your savings while you plan for your business launch.

Microloans

Microloans are small loans, sometimes as little as a few hundred dollars, often designated to assist business owners who have limited work experience, live in underserved communities or are starting businesses that will help give back to the community. If you need a small amount of money, such as $5,000 to $10,000, a microloan could be the perfect solution. Kiva and Accion are two well-known microlenders. Microloan.org Is a portal that matches entrepreneurs with micro-lenders nationwide. The SBA also offers microloans through specially designated intermediary lenders; the average SBA microloan amount is about $13,000.

Bank and SBA Loans

The first place you think of going for startup capital might be the bank. In reality, it’s very rare for startup businesses to receive a loan from a bank or even an SBA guaranteed loan (loans made through participating banks and partly guaranteed by the SBA). Some 75% to 80% of SBA loans go to established companies, according to LenCred founder Tom Gazaway.

Why is it so hard to get a bank loan? In order to help make sure they’ll get their money back, lenders typically want to see things a startup business doesn’t have: a documented track record of success, financial statements showing adequate sales to service the loan, and a strong business credit history.

You may have a better chance of getting a startup bank loan if you can demonstrate some degree of business success, such as signed orders from customers, and if you have a strong personal credit score. You may also have more success with online lending sources, which sometimes have more lenient criteria for loan approval.

Crowdfunding

If you expect to finance your start up through crowdfunding, it’s time for a reality check. Although crowdfunding sites generate a lot of buzz, very few businesses actually get financing this way. (In reality, 63.71% of Kickstarter projects failed as of August 2018.)

Successfully crowdfunding your business requires a lot of hard work, including a well-thought-out media campaign to attract attention, a tantalizing offer for your contributors and an exciting product that has the potential to generate lots of buzz among consumers (such as a new tech gadget). Get the scoop about crowdfunding.

Venture Capital

Venture capital investments are setting records—but unless you are starting the next Facebook, don’t expect VCs to finance your business. Just 0.5% of entrepreneurs get capital from venture capitalists, reports Scott Shane, A. Malachi Mixon III Professor of Entrepreneurial Studies at Case Western Reserve University. Venture capitalists expect a return of at least 10 times their investment, seek companies with huge growth potential and will expect to take a lead role in managing your business (which probably isn’t something you want anyway).

Angel Capital

Angels are wealthy individuals who invest their own money in small businesses, either individually or as part of angel groups. However, angels generally don’t invest in businesses at the startup stage. They’ll want to see proof your business is already successful with a strong potential for growth that can bring them a big return on investment. Learn more about what an angel investor looks for when investing.

Franchise Loans

Are you buying a franchise business? If so, you may be that rare startup that’s able to get a bank loan. Franchisees are considered more fundable than the average startup because the franchisor is there to help them through the risky startup stages. Since you’ll be working from a proven franchise system, not your own business plan, lenders can feel more confident they’ll get their money back. In addition, many franchisors have approved lending sources to which they direct new franchisees.

Grants and Awards

Contrary to what you may have heard, the government doesn’t hand out free money to start businesses like candy. Most grants are for nonprofits; the grants for for-profit startups that do exist are few and far between, and generally require your business to meet stringent criteria. The Small Business Innovation Research (SBIR) & Small Business Technology Transfer (STTR) programs provide grant money for firms doing research that can lead to commercially viable technology. If you’ve got a lot of patience, you can search for federal government agency grants at Grants.gov. Also check out these grants for small businesses.

Where Not to Get Startup Money

There are a couple places you should never turn for startup money. Don’t put your home or your financial future at risk to start your own business. If you take out a home equity line of credit or get a second mortgage on your home to finance startup, you could end up losing your home (and destroying your credit rating in the bargain). By the same token, don’t borrow from your retirement plan to launch a business unless you are nowhere near retirement and feel confident you can rebuild your nest egg if need be.

By looking in the right places, you can find the startup money you need. It just takes time, patience and the willingness to get creative.

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This article, “Where to Get Your Initial Startup Money” was first published on Small Business Trends

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When did you last read about a small business being hacked in the news? Once this happened rarely. But according to the Verizon 2019 Data Breach Investigations Report (DBIR), 43% of cyber-attacks target small businesses.

And cyber attacks on small businesses represent the largest share of all the attacks in the report. The disparity highlights a lack of resources and knowledge. So small business owners must learn more and invest in better digital security. But cybercriminals also seem aware of this disparity. And this explains why they target small businesses in higher numbers.

Bryan Sartin serves as  executive director of security professional services at Verizon. And in the press release for the report, Sartin explains in detail about the importance of being aware of your security risks.

Sartin says, “As businesses embrace new digital ways of working, many are unaware of the new security risks to which they may be exposed.” And he goes on to explain how businesses, “Really need access to cyber detection tools to gain access to a daily view of their security posture, supported with statistics on the latest cyber threats.”

Finally, Sartin emphasizes the need to see security correctly. It must work as a “Flexible and smart strategic asset that constantly delivers to the businesses, and impacts the bottom line.” But cyber attacks impact the bottom line of small businesses dramatically. And they can result in companies going out of business. Unless they’ve created a robust recovery system.

2019 Small Business Cyber Attack Statistics

The Attacks

The report shows the vector for the attacks can come from anywhere.

The majority (69%) of the attacks proved to be work of outsiders. And 39% originated from organized criminal groups. But nation-state or state-affiliated actors also took part in 23% of the breaches.

Internal offenders involved themselves in 34% of the incidents. And 2% of those proved to be partners in the firm. While 5% were identified as multiple parties.

The report also covered the methods for committing these crimes. So 52% of the breaches resulted from hacking.  And other tactics include social attacks (33%), malware (28%), events caused by errors (21%), misuse of authorized users (15%), and physical actions (4%).

The Victims

Verizon says no business is too small or too large to fall victim to a data breach. And no industry vertical has proved immune to attack. So the 43% of targeted small businesses highlights no one is off-limits.

Meanwhile 16% of cyber attacks target public sector entities. And 15% focus on healthcare organizations. Meanwhile 10 % of attacks  hammer the financial industry. But some segments seem more prone to attacks than others.

Verizon says the business model, type of data transmitted and retained, customer base, and the technologies needed to secure their environment are all factors.

The report recommends businesses look beyond their industry. So they can learn from other sectors. And the perspective they gain from the experiences of other industries can provide valuable insight.

Check this list of attacks according to industry:

• Accommodation and food services – 87 incidents with 61 confirmed data disclosure
• Educational services – 382 incidents with 99 confirmed data disclosure
• Financial and insurance – 927 incidents with 207 confirmed data disclosure
• Healthcare – 466 incidents with 304 confirmed data disclosure
• Information – 1,094 incidents with 155 confirmed data disclosure
• Manufacturing – 352 incidents with 87 confirmed data disclosure
• Public administration – 23,399 incidents with 330 confirmed data disclosure
• Retail – 234 incidents with 139 confirmed data disclosure
• Professional, technical and scientific services – 670 incidents with 157 confirmed data disclosure

The report reveals cyber criminals are ever present. And they wait for the right opportunity to steal your information. So regardless of the type or amount of your data you must remain vigilant. Do you have a digital presence? Then you must be ready for the inevitable. And being ready remains the best way to reduce the impact of any breach.

Get Ready

Stay proactive about protecting your digital presence. Keep informed. And try to understand the threat landscape of today’s digital ecosystem.

Don’t worry about being an expert. But keep current on cyber risks. And this makes you aware of your vulnerabilities. Lack of information about cyber risks can prove dangerous. It hurts your ability to mitigate and recover from attacks. But staying informed enables you to plan. You can consider different scenarios in the event of a breach.

Do you lack confidence in your digital security capabilities? Then hire a security expert. And have them implement a protocol with industry-leading best practices and strong governance.  You serve as owner and decision maker in your business. So you must make everyone in your business accountable for their actions. But without strong governance, your new system will prove a waste of time and money.

Best Practices Recommendations from Verizon

Keep it clean: Many breaches are a result of poor security hygiene and a lack of attention to detail. Clean up human error where possible, and then establish an asset and security baseline around internet-facing assets like web servers and cloud services.

Maintain integrity: Web application compromises now include code that can capture data entered into web forms. so consider adding file integrity monitoring on payment sites, in addition to patching operating systems and coding payment applications.

Redouble your efforts: 2FA everything. Use strong authentication on customer-facing applications, any remote access and cloud-based email.

Be wary of inside jobs: Track insider behavior by monitoring and logging access to sensitive data. Make it clear to staff just how good you are at recognizing fraudulent transactions.

Scrub packets: Distributed denial of service (DDoS) protection is an essential control for many industries. Guard against nonmalicious interruptions with continuous monitoring and capacity planning for traffic spikes.

Stay socially aware: Social attacks are effective ways to capture credentials. Monitor email for links and executables. Give your teams ways to report potential phishing or pretexting.

The Verizon Study

The Verizon DBIR report is an industry standard in digital security. The 12th edition of the report contains the analysis of 41,686 security incidents including 2,013 confirmed breaches.

The report analyzed close to 1.5 billion data points of non-incident data from contributors, and according to Verizon, this was a substantial increase.

This year the FBI Internet Crime Complaint Center (IC3) contributed to the DBIR with impact data from business email compromise (BEC) and computer data breach (CDB) reports.

You can get the entire 2019 DBIR report and executive summary on the resource page.

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This article, “43% of Cyber Attacks Still Target Small Business while Ransomware Stays On the Rise” was first published on Small Business Trends

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How much time do you spend on marketing for your small business? A new survey carried out by OutboundEngine reveals 58% spend five hours or less on marketing. And stress is a major contributing factor for how much time small business owners spend.

Titled “Stress, Time & Growth: Factors Affecting Small Business Marketing in 2019,” the report looks at the marketing strategies of small businesses. And according to OutboundEngine, the complexities of today’s small business ecosystem is making marketing much more difficult.

The complexity is driven by the sheer number of options available to businesses in marketing today. For small business owners who don’t have the knowledge base or the budget to capitalize on these options, it can indeed create a stressful environment.

In the report (PDF), Marc Pickren, CEO, OutboundEngine, says marketing is a key factor in driving the growth or slowdown of a business. And business owners must commit to investing in their marketing efforts.

Pickerin goes on to say “There are now numerous technologies to help small businesses automate their marketing, but even those take a weekly commitment that small business owners just don’t have time for.”

2019 Small Business Marketing Challenges

For most small business owners, marketing is not their primary skill set. And if they don’t have the budget or in-house talent to carry out the task, it becomes a problem. This inevitably creates a stressful environment for small businesses.

In the survey, 62% of owners said they are as or more stressed about their business in 2019 than they were last year. And the lack of resources seems to be the biggest hurdle to overcome when it comes to marketing. This includes finances, knowledge, and talent.

The problem of finances was stated by 28.5% of the respondents who say they just don’t have enough money. This was followed by 22.39% with not enough time and another 14.25% who can’t identify the best marketing tactic for their business.

Others said they don’t have the staff they need (11.96%) and they don’t know where their customers are (2.80%).

When it comes to spending on marketing, more than half or 54.45% spend 5% or less of their revenue. And only 4.33% spend greater than 20% of their revenue on marketing. But according to the survey, businesses who spend more on marketing experienced higher growth rates.

Finding the balance between spending the right amount of money and time is key. But it is not as simple as that.

How Much Time are Businesses Spending on Marketing?

Small businesses are not spending the necessary time on marketing to get the results they need. With 58.27% spending less than five hours per week, the data shows owners clearly give other parts of their business operations a higher priority.

Only 4.33% of owners spend more than 20 hours per week. Another 5.34% spend 15 to 20 hours and 22.14% spend 5 to 10 hours each week devoted to marketing.

With more business owners spending less time on marketing, it is not surprising their growth is suffering. But the survey shows a clear correlation between spending more time and higher growth.

In 2018 more than 79% of respondents who spent 5 to 10 hours per week on marketing reported revenue growth. For those who spent less than five hours per week, the number goes down to 52%.

Marketing and Small Business

With so many challenges, where are small businesses finding success with their marketing strategies?

For the majority of the respondents or 39.72%, organic social media is delivering for them. In the digital realm, this was followed by paid social media (17.22%), email marketing (9.72%), and digital advertising (8.06%). Traditional advertising came in at 11.67%, followed by events with 13.61%.

The issue of time still persists for businesses who have found social media to be a successful marketing strategy. More than half (52%) said organic social media is the greatest time-suck for them, followed by events and paid social media at 15 and 13 percent respectively.

According to OutboundEngine, small businesses can overcome these challenges by deploying marketing automation solutions. The operational framework this technology has introduced is giving small business owners more bang for their investment.

By relieving owners from the time-consuming maintenance of customer engagement and other marketing tasks, it will get rid of the stresses of running their business.

The Survey

OutboundEngine carried out the survey with the participation of more than 350 small and medium-size business owners in February 2019. The businesses were based in the U.S., and the goal of the survey was to explorer marketing related topics.

The survey looked into how business owners felt about the future success of their enterprise by exploring their sentiment toward and knowledge of marketing. This includes tactics and time management preferences along with other stressors and concerns.

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This article, “58 Percent of Small Businesses Spend 5 Hours or Less on Marketing” was first published on Small Business Trends

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