Thursday, August 28, 2014

Government Contracting and Certification – What It All Really Mean?


By K. Murray

You’ve heard the phrases before: government contracting and small business certification, but what do they really mean? And does it really matter for your small business? Maybe — and maybe not. Let’s cut through all the noise and define these phrases in a meaningful way for your entrepreneurial endeavors.




What is government contracting?

Government contracting is the process that lets you sell your goods or services to the government and its various agencies. The government has a contract or agreement with you, whereby it purchases what you do or make. And U.S. government agencies buy a lot from small businesses — nearly $100 billion worth of goods and services each year! From market research to janitorial services, if you want to make the government your customer, there’s a good chance there’s a need for what you offer.

So, what does it mean to be certified as a “small business”?

Being certified as a “small business” is only significant if you’re interested in government contracting. Why? Because there are certain set-asides that the government must adhere to when they’re looking to buy goods or services – there’s a percentage of business set aside for different kinds of companies, including small businesses. (Others include women-owned, veteran-owned, etc.) So if you want to be a contender in the federal marketplace, your small business has to meet official criteria to be eligible for government contracts.

How do I certify my business as small?

First, make sure you do, in fact, have a small business. For most industries, SBA defines a "small business" either in terms of the average number of employees over the past 12 months, or average annual receipts over the past three years.

   Then, when you know you adhere to the size standards, you register for government contracting. This process also serves the purpose of “certifying” your business as small.

Where can I get help?

Starting out in government contracting can be overwhelming, but SBA has resources to help:

•The Government Contracting Classroom: Online, self-paced training courses to fill you in on the government contracting landscape — from starting out to special programs.

•Procurement Technical Assistance Centers (PTACs): PTACs offer local, in-person counseling and training services to businesses that want to sell products and services to federal, state and/or local governments.

•Selling to the Government – Get Started with These 5 Steps: A five-step plan that summarizes the process of entering the federal marketplace, plus links to additional resources.


K. Murray is an author and moderator for the SBA.gov Community.
The New American Chamber of Commerce (NACC) offers seminars on government contracting and certification. For more information, visit www.mynacc.org

 

Wednesday, August 27, 2014

How NACC’s Small Business Solutions Helps Your Small Business

By Marilyn Silverman

Are you an entrepreneur who is frustrated and perplexed and simply overwhelmed by the plethora of rules and regulations   out there and are just at your wit’s end since you don’t have the foggiest idea who you can turn to for help? You took a huge step and exited the world of 9-5 and are now anxious to attach that “Open for Business” sign on your retail establishment. But before you climb that ladder you must make an appointment with the New American Chamber of Commerce (NACC) Small Business Solutions.  NACC’s Small Business Solutions consultations are facilitated through the Law Firm of Figeroux & Associates. We have the answers. We have the expertise. We have the knowledge. We have the experience.  And we have compassion and respect for the small business owner who wants to achieve the American Dream of business ownership.

Here’s how we can help:
   If you are running a home-based business, which incidentally, is a very popular business genre today—your office can be but a few steps away in your kitchen, bedroom, basement, attic or wherever —you might just qualify for home business tax deductions. You just started your business and already, we’re saving you money.

    If you are operating a business, you will need an accountant to help you pay your taxes every year; all those pages and pages with the tiny print, are time-consuming. Who has the time?

   If you are a savvy entrepreneur, you will most certainly want to avoid the unpleasant and scary experience of being audited. Who wants to meet with the IRS?

   If you are in business with a colleague, you will need a partnership or shareholders agreement. A handshake is not enough, even if your business partner is your spouse. You should be knowledgeable about the most preferred legal structure for your business, e.g., sole proprietorship, corporation or LLC.
 
 You should formulate a business plan, which is an absolute prerequisite for every single business owner —this is needed when you are hunting for funding sources; e.g., banks or venture capitalists.  You certainly are not going to dip into your pocket for cash.

  You should decide what type of accounting software would be most appropriate for your business. Is Quick Books the right choice?

  You should either handle your bookkeeping and accounting in-house or outsource it; the latter is a cost-effective strategy since you won’t have to hire full-time staff to perform this vital function.

  You should make a determination as to who should control your business’s checkbooks. You should be aware of your sales tax responsibilities. 

  You should have an expert review your franchise agreement in the event you are interested in exploring opportunities in the exciting and lucrative world of franchising.

   In summation —under one roof, Small Business Solutions incorporates the expertise and experience of a Legal Department, a Tax Preparation and Audits Department, an Accounting and Bookkeeping Department, a Franchising Department and a Collections Department—all of the departments that will enable you to focus all your energy on attracting customers and watching your business grow. Just imagine, you are a small business and yet, you will enjoy personalized attention from departments that are an integral component of Big Business. That’s how NACC’s Small Business Solutions helps your business.   


  To set up an appointment for a Small Business Solutions consultation, call 718-834-0910.

Black and Hispanic Entrepreneurs Face Discrimination When They Apply for Small Business Loans


By Marilyn Silverman

You’re standing on line in your neighborhood bank. You want to start a small business, or you want to expand a growing business. Business ownership is the name of the game; it’s the American Dream. Small businesses are the lifeblood of our economy—the government is always telling us. Well, someone ought to tell this to the banks out there, since they’re making it difficult, if not impossible, for Blacks and Hispanics to share a piece of that pie and obtain that loan.

Whatever, you don’t have the wherewithal to invest in yourself. What do have, however, is a dream. It’s a truism that banks tend to approve small business loans.  You’re a business owner, so ipso facto, your neighborhood bank should approve your loan application.

Well, I’m going to paint you a depressing and shocking scenario that is being played out in banks today across America, the land of opportunity, but not for all. You possess practically the duplicate credentials of that white entrepreneur who is standing directly in front of you or directly in back of you in your neighborhood bank. You both possess a professional demeanor in your attire—no jeans, T-shirt or running shoes today. You both possess the identical education credentials. You are both requesting $60,000 loans for the identical business genre. That’s all you need to launch your business. Furthermore, you both possess the same credit history and credit score. The only difference is the color of your skin which should not make a difference but shockingly  and deplorably, it does. 

You want to go to college, get a job and get an apartment—all the ingredients of a successful quality of life that every man and woman living in the U.S. deserves. But we all know that Blacks and Hispanics face discrimination in these areas. Now, there’s a shocking milestone—for the first time ever—discrimination has invaded the marketplace.

A study was conducted by three business school professors from three respected universities—Jerome D. Williams (Rutgers), Glenn L. Christensen (Brigham Young) and Sterling A. Bone (Utah State), “Rejected, Shackled, and Alone: The Impact of Systemic Restricted Choice on Minority Consumers; Construction of Self” and published in the Journal of Consumer Research.  The academics utilized an interesting experiment —they recruited three Blacks, three Hispanics and three whites to amass their shocking and deplorable findings by sending them into banks as mystery shoppers, posing as business owners needing loans.  “Our research offers evidence against the general assumption in the United States that choice is equally distributed, democratized and available to all,” the authors wrote.
We have the global reputation of being the land of opportunity which justifies the massive influx of immigrant to our shores. But not everyone can enjoy these opportunities.

Unbeknownst to that Black or Hispanic business owner in that neighborhood bank on a crisp morning, is that he is going to be the beneficiary of less information vis-à-vis his white counterpart and is going to be asked many, many, probing questions.   He will receive far less information on the loan terms and requirements which is dominated by a plethora of facts and figures. Business owners should be able to put their faith and trust in the bank, confident that they can explain its many provisions and clauses.  

Will he be handed a business card that as per business etiquette occurs at the end of the meeting signaling that they will be embarking on a long-term relationship?  Not very likely.  But they can most certainly be assured of unpleasantness –their personal financial status will be probed and furthermore, they are not likely to have that loan request approved. And, according to Alicia Robb, co-author of the Kauffman Firm Survey, Black and Hispanic entrepreneurs are less likely to even apply for loans for fear of rejection.

According to the SBA’s Office of Advocacy, the Federal Reserve and the U.S. Department of Commerce Minority Business Development Agency, Blacks and Hispanics are compelled to pay higher interest rates that takes quite a sizable bite out of their profits.

These insurmountable barriers to secure funding may have a detrimental impact on the budding entrepreneur’s quest to start their business or on the long- term success of an existing business.  The collaborators on this study, wrote, “Not only does restricting a person’s choice threaten the success of a new business, it also has…damaging effects on the individual’s self- esteem and their personal sense of control and power in the world.”

According to BizBuysell.com, in today’s economic climate baby boomers are increasingly facing retirement and increasingly the face of their buyer is Black or Hispanic—that is wonderful news but how is that Black or Hispanic business owner going to be able to buy that business without a bank loan?

It is indeed brutal for Black and Hispanic business owners in their quest to get a loan; as The Washington Post said, they “are treated significantly worse than their white counterparts …even when all other variables—their credentials, their companies, even their clothes—are identical.”

Thursday, August 21, 2014

Student Loan Mistakes

You don’t think you qualify for financial aid.
So many college students don’t even bother applying for financial aid because they don’t think they can qualify, but that is a huge mistake. You are passing up the opportunity to see if you qualify for grants, which is free money for college that you do not have to pay back. Even if you don’t qualify for a grant, you can qualify for federal loans as opposed to private student loans which come at a lower interest rate. You’ll also find out if you qualify for work study, which is an opportunity to work on your college’s campus to earn money. You forget or miss the deadline for the FAFSA.

To find out if you qualify for this financial aid, you must fill out the free FAFSA. You’ll need information about your income and possibly your parent’s income as well as assets. There is a deadline to filling out this information, and it needs to be done either every year or semester, depending on your college. The sooner you fill out the FAFSA, the better because once this financial assistance is used up, it’s gone.

You have the “borrow now, earn later” mentality.
In my opinion, a lot of the problems with student loans come from the idea that you can borrow as much as you want because in just a few years you’ll be earning a steady, good salary and pay it back with ease. Unfortunately, this isn’t always the case. A lot of recent graduates struggle to find a job once they graduate, or even when they do, it’s not the salary they expected. Plus, even if you do land a job, shelling out a good portion of your hard earned income stings every month. Be conscious of the money you are borrowing, and do everything possible to reduce what you will owe.

You take out more loans than needed.
Going along with that same borrow now, earn later thought, many college students take out extra loans. Hey, what’s an extra few thousand each semester to be able to live in a nicer apartments, buy some new clothes, take a vacation, or simply have more fun with friends? I get it, but it’s not a good idea. Those extra loans add up quickly, and you’re paying interest on them. Once you’re done with school, working, and trying to pay off those loans you’ll realize those extra loans weren’t worth it.

You take more classes than you need.
Depending on where you’re headed to college, one single class can cost hundreds or even thousands of dollars. Taking classes you don’t need to graduate, is a horrible financial mistake. This is a common occurrence when people change their major. It’s tricky because you aren’t just going to stick with something you realize isn’t a good fit for you. To avoid this, really think about your major before you start taking classes for it. Sit in on classes, meet with advisors, talk with professors, shadow people in your field, and do plenty of research on the job outlook, what the job entails, and other working conditions including salary. This way, you aren’t making a rushed decision on a major. Another reason why people take classes they don’t need, is they aren’t quite sure and take something on accident. Requirements for colleges are constantly changing, so it’s a good idea to meet with an advisor in your major’s department every semester to figure out what you should be taking.

You don’t apply for scholarships.
Scholarships are free money used to apply towards your college education. Many people don’t think they’ll qualify for any scholarships or simply don’t want to take the time to apply. But you never know if you can qualify for a scholarship. You can find scholarships offered through your college, city, state, private organizations, community groups, professional organizations, and much more. Ask your college’s student finance service department on what scholarships your school offers and advice on where to find more.

You don’t stick to a budget.
Just because you’re in college, doesn’t mean you shouldn’t be trying to stick to a budget. Know where your money is going. You might be shocked to learn what you’re spending on coffees or grabbing a quick bite with friends. Go back over the last three months to see what you spent on food, gas and transportation, entertainment and going out with friends, and all of your other bills, like cable, electric, and rent. See what the average cost was. It might be more than you anticipated. Try to find ways to cut all of those costs down. Make an amount that you’re comfortable spending and stick to it by keeping track of your spending and finding ways to cut costs.

You don’t really understand how the student loans work.
That saying ignorance is bliss is somewhat applicable to student loans, at least while you’re still in school. It may sound irresponsible, but it’s pretty common for people just to blindly take out the loans, not realizing what they’re paying in interest and what they will actually owe once they get out of school. Even if it’s difficult to accept, really understand what you’re borrowing, the interest, and what the payments will be when you graduate.

You drop classes.
Two weeks into the semester and you realize you don’t like your professor, you’re having issues in your personal life, or you don’t like the class. Things happen, but once you drop a class, you’re still paying for it if it passed the deadline to which you can drop it without a fee. Before you register, be sure you know the specific date and time when you can drop a class without any fees or penalties.

Friday, August 15, 2014

How NACC's Small Business Solutions Helps Your Business

– by Marilyn Silverman

Are you an entrepreneur who is frustrated and perplexed and simply overwhelmed by the plethora of rules and regulations out there and are just at your wit's end since you don't have the foggiest idea who you can turn to for help? You took a huge step and exited the world of 9-5 and are now anxious to attach that Open for Business sign on your retail establishment. But before you climb that ladder you must make an appointment with the New American Chamber of Commerce Small Business Solutions. NACC's Small Business Solutions consultations are facilitated through the Law Firm of Figeroux & Associates. We have the answers. We have the expertise. We have the knowledge. We have the experience. And we have compassion and respect for the small business owner who wants to achieve the American Dream of business ownership. Here's how we can help:

If you are running a home-based business which incidentally is a very popular business genre today—your office can be but a few steps away in your kitchen, bedroom, basement, attic or wherever —you might just qualify for home business tax deductions. You just started your business and already we're saving you money.

If you are operating a business you will need an accountant to help you pay your taxes every year; all those pages and pages with the tiny print, are time-consuming. Who has the time?

If you are a savvy entrepreneur you will most certainly want to avoid the unpleasant and scary experience of being audited. Who wants to meet with the IRS?

If you are in business with a colleague, you will need a partnership or shareholders agreement. A handshake is not enough even if your business partner is your spouse. You should be knowledgeable about the most preferred legal structure for your business, e.g., sole proprietorship, corporation or LLC.

You should formulate a business plan which is an absolute prerequisite for every single business owner—this is needed when you are hunting for funding sources; e.g. banks or venture capitalists. You certainly are not going to dip into your pocket for cash.

You should decide what type of accounting software that would be most appropriate for your business. Is QuickBooks the right choice?

You should either handle your bookkeeping and accounting in-house or outsource it; the latter is a cost-effective strategy since you won't have to hire full-time staff to perform this vital function.

You should make a determination as to who should control your business's checkbooks.

You should be aware of your sales tax responsibilities.

You should have an expert review your franchise agreement in the event you are interested in exploring opportunities in the exciting and lucrative world of franchising.

In summation-- under one roof, Small Business Solutions incorporates the expertise and experience of a Legal Department, a Tax Preparation and Audits Department, an Accounting and Bookkeeping Department, a Franchising Department and a Collections Department—all of the departments that will enable you to focus all your energy on attracting customers and watching your business grow. Just imagine, you are a small business and yet, you will enjoy personalized attention from departments that are an integral component of Big Business. That's how NACC's Small Business Solutions helps your business. To set up an appointment for a Small Business Solutions consultation, call 718-834-0910.

Wednesday, August 13, 2014

5 Ways to Jump-Start Your Credit Score

It's a common financial predicament for most 20-something-year-olds: You need credit to get credit. But even if you're older and have been through some credit-wrecking havoc in your life, you could face the same issue. "The only way to build a credit history is to use credit," explains Maxine Sweet, Vice President of Public Education at the Credit Bureau, Experian. So here are five easy steps to help get you started.

* Know the score: Figure out what credit history you've established. Even if you've never had a loan or credit card, there's a good chance you have information on your credit reports that has been compiled by the three major credit bureaus: Equifax, Experian and TransUnion. For instance, Experian now collects rental payment histories, so some landlords submit reports to credit bureaus.

Under federal law, the three credit agencies are required to provide you with a free report every 12 months. We suggest taking advantage of your free annual report from AnnualCreditReport.com. Your credit score isn't included in your free annual credit report. In most states, the credit bureaus each charge around $10 for your score.

The higher your score, the lower risk you are to lenders and insurers. This means you'll generally have a better chance of receiving credit along with lower interest rates. Be aware that this allimportant number, which ranges from around 300 to around 850, can vary depending on the scoring model used by credit agencies and lenders.

* Research your choices: If you have little or no credit history, your choices for loans or credit cards may be limited. Retail or gas cards, and loans secured by property, such as furniture or a car, may be easier to get. You may start by asking your parents, or someone else with good credit, to co-sign on a low-limit credit card with you.
Your bank or credit union may provide another alternative. Sometimes they offer special programs for customers who need to establish credit.This can be a great way to help build credit history.

* Establish a track record: Once you have some credit accounts, it's important to use but not abuse them. It may be counterintuitive, but if you don't use credit, you won't be able to build a solid history.

* A good habit: Use your card to make small purchases and pay off the balance each month. "By charging a small amount on at least one card and paying the balance on time and, ideally, in full, you'll show that you can manage credit without charging more than you can afford to pay," Sweet says.

* Use credit wisely: If you want to be a credit superstar, follow two basic rules: Pay on time and don't go over your credit limits. For those just starting out, this is even more critical. It is important to start carefully. At this point, you don't have a long and distinguished track record that can help alleviate the impact of a small mistake, so tread carefully. Using credit responsibly means you use and pay off your cards monthly, make payments on time every time, don't apply for numerous accounts and check your report periodically.

Don't make these mistakes:
* Applying for several lines of credit and loans within a short period of time can give lenders the impression you're in desperate need of money and may have trouble paying back the debt. Keep your number of applications at a minimum and only go for the opportunities that offer the best deal.

*Part of your score is based on the amount of credit you have available but aren't using. The lower your balance (in proportion to the credit limit), the better.

* If you decide you no longer need a particular account, don't close it. The age of your accounts affects your score, so keep the oldest ones to show as long a credit history as possible.

* Don't turn a blind eye on those reports. Once you've established credit, get in the habit of periodically checking for any fraudulent activity, as well as any reporting mistakes.(BPT)