Also in this playlist...
This transcript is automatically generated
Good morning everybody welcome to FBN live this is a small business center it's Wednesday's silly do tons of stories on small businesses out there since they -- back on.
Our economy right now but first we have a -- -- and the market's down now for five days in a row.
The reason today is -- just difference between investor who's in it for the long haul and -- trader who's there for the short term gains and sometimes losses.
And yeah investors awfully.
Feels like Groundhog Day -- we're starting the year really strong the past years and around and then we start to flat line and we flat -- right now -- hopefully we can get it back let.
One of the problems we're facing -- do their small businesses like -- said.
The backbone of America right now and it seems like those small business owners are in really bad mood.
And -- Rogers with small business center on foxbusiness.com is gonna break that down for us -- -- hour.
Well the National Federation of Independent Business released their optimism index -- -- yesterday and -- brief points from day.
To you at 94 point three.
Percentage points and this came in 91 point -- 91 point four I'm sorry.
I'm that's what it was asked to get it to be and in May leave 94 point fours that I had a three point tumble there and it's really got to I'm feeling pretty down.
And what's scary is that this was -- before President Obama is big health care decision from the Supreme Court.
So basically you're telling me that small businesses were.
Very discouraged sunny outlook for the economy investing money in new workers in new machinery.
All this stuff they were discouraged and this -- and before our two major events happened -- yes the Supreme Court ruling on health care.
As well as the tax increase which -- earlier -- -- you -- Christmas a little bit yes exactly still a lot of small business owners are feeling really uncertain about how Obama -- will impact their bottom line.
It's going to the fact how they're going -- higher -- and they're going to face those -- of 2000 dollars per worker if they choose -- thousand dollars for worker per year if they choose to not insure these -- and pay the fine.
Exactly what Jack -- fifty employees and top level you're gonna have to start paying.
That line or offering health insurance exactly.
And I know we have gotten some charts here these.
Month over month optimism.
For our viewers that you can kind of see.
How this is falling silly in March we -- at 92 point five -- April 94 point five.
May 94 point four and then you are our 91 point -- banks and relentless -- essentially and let's say cool looks play the lowest since October yes so it really is tumbling to that eight month -- Okay but how does this you know Obama few days ago said that he was gonna.
I extend the bush era tax cuts yes for those Americans those households making less than 250000.
Dollars a year -- a lot of small businesses bond yes so easily getting good thing.
No I have so many -- -- -- is the -- that I spoke to that FID and as the council and they said that this is not a good -- for small business owners because so many small business -- Do you fall into that upper income tax bracket because their business -- -- and their present incomes are intermingled not filing separately so they will make.
Technically more than 250000 dollars annually but that's -- personal -- right -- -- does -- cover their payroll for their workers actually and stuff associated with their business so all of that and -- Obama -- decision from the Supreme -- those are really an impact small business -- optimism levels even more probably -- negative side that was included in this -- I would imagine that you called the and a five EU or some sort of small business association almost daily right yeah we talk Bombay has an.
You know like hiking we know you are yes and -- did they tell you.
Well they're just saying that the top three concerns for our small business owners number wine is always going to be these leaks out I was 23 -- and they're getting even weaker because you've got China slowing down which is sometimes part of their business man.
The debt crisis in Europe doesn't seem to be you know that's and it's been and it doesn't help this uncertainty that they're always talking and -- -- that number ten and it but we can't help -- -- Yeah definitely not a small business in Miami yes copies at number two is tax is -- to -- percent of the vote and then number 319%.
I'm red teeth and unnecessary regulations are what are really what did they ever talk about it's I know it's probably different depending on the industry but is there yeah really so you can point out releasing -- -- -- Actually -- there's -- EPA lawsuit going on over these greenhouse gas emissions through the restaurant industry and not small business owners have to comply.
I'm with these regulations and it's just too costly for them.
To come through on that one of the things that I have heard from my dad's in the furniture industry and I mean business has tanked yeah first it was everything was going to China because their factories didn't have to.
Live up to the same rules and our factories here -- had to live up to so they lost so much business because of these.
Clean air regulations which they.
Should be there for many read yes of course there they're good thing but for the little guys how many jobs over isn't now cheap Chinese furniture.
It's flooding our markets -- You know there's a lot of mandates and regulations in the health care a lot about the small business community nobody understands the -- they're not happy about it we have a story actually coming up -- and a small business center really breaking it all down and -- impact different groups of small business owner -- under fifteen plays over fifty employees and what that -- -- so yeah I guess music.
I don't know if you -- -- filling the -- after you -- talk about this did you know that every single month more than half a million -- businesses are started.
Wow that's about -- yeah million a year.
Yeah that Humana fell in one I did know that aiding other content one year you know what happened so quickly -- -- nonstop yeah.
Well we saw the spirit if not they knew about there are willing to take that leap of faith and really try it out -- I think diet let's plug your article thank you for joining us here you writers your article is right here on our website.
Uncertainty reigns supreme and coming up after break if you are one of those half million.
You businesses that are started each and every month weren't made three mistakes to a blade with the party goddess.
Find out what his comment coming up right we'll be right back.
Welcome back everybody RA -- -- thank you for writing and I like your comment today.
You think the biggest mistake since -- our number one under capitalization.
To lack of understanding on the projected market and three overzealous projected sales numbers.
The point I agree with all of those and we can discuss all this.
Win Marley major joining us from Los Angeles.
You're the author of but -- you making any money.
Good question and also.
With the party goddess -- thank you so much Marley for coming on today.
So I guess -- thank you for having me.
Quickly what are these three big mistakes that most small businesses -- On for the -- make.
And -- you heard that right before we went to break I was saying how.
The -- index of entrepreneurial activity reported that 564.
And thousands new businesses.
Our started each and every month.
For the annual tally at six point eight million new firms a year and most of them it's the -- praising him number one is -- -- number.
Still -- -- how do you not become a statistic that.
How do you not become a statistic -- three things number one is summoning entrepreneur -- don't have a system for tracking their time in the first place and that is a problem I see it's -- think of like going on a diet you know if you -- -- on a diet and you write everything down that you -- all the sudden you find.
Where you're wasting all these calories in business it's the same thing you need this system for tracking your time.
The second thing that we do is we spend time on things that aren't beneficial to the bottom line.
And and being in business the goal of being in business and the goal of business vs a non profit or hobby is profit right and in need to spent.
The time on things that are gonna fatten up that bottom line not on things that are going to be and not do anything but -- -- time waste hours.
And the third thing is that we don't anticipate how much capital and now that was a point that she just made earlier.
We don't anticipate how much capital it really takes to start a business and to keep it going.
I think that's why so many people fail on the beginning to is is they they think OK yes singing business cards yes I might need a web site.
But they don't realize all of these other expenses that go to to having a -- like if you're gonna.
Do anything -- retail and you're gonna have sales tax you're gonna have to put a -- that for your gonna if you move into and you rental space.
You're gonna need to have the first and last month's rent things that can really -- your cash flow and most people are prepared.
To go for the length of time that they need to.
-- to make it.
Past that point.
Yes Somalia those are some great points -- not only do you need money for items you might not -- thought you would ever need yet to be able to get that money so let's critical full screen right now.
And we can just go over some attorneys initial cost that can really get a small measure us.
As a trying to.
Get into the markets alike he said we've got business cards a website insurance maintenance marketing.
-- -- -- -- And sales tax and you just mentioned sales tax so those are some things that are not so obvious to a lot of people is -- a certain place.
Small businesses can go to.
Get some more information on all of this.
Absolutely wolf first of all I think it's so important just just some of the things that that we mentioned.
That you know.
Created business plan even if that's just a really quick and dirty business plan right that forces you to lay out all of these expenses let's not just the web -- but it's it's your web designer -- -- -- creature logo and everything else.
And to really do -- to do business plan with with forecasting of your expenses and what projected revenue and then how much you need to live while this business is starting so definitely.
And -- there's some great business plan software out there it is so much easier these days to create a business plan than it ever was -- though Renaissance -- -- one off hand some of those.
Program I know I -- that.
Yes and no one for char is -- plan pro I believe -- call and proud and cracked and you can Google that another great resource it's gore -- the I'm retired executives.
And there that the association of retired executives and basically what happens is these are experienced business people who now are retired and they want to give back to entrepreneur -- It's also crucial to have a mentor you know have somebody.
That can that can really help you through some of these pitfalls that are not textbook thing I mean so many things that get us in trouble and business are.
Not the obvious stuff it's it's wait what do I do I didn't -- I need to put up a bond from my sales tax or wait a minute I didn't know that I would need to.
Get that insurance would be so expensive yet things like that are absolutely.
Crucial and and you have to have that -- Talking to somebody who's been there watching programs like this reading articles and they're just an amazing resources and quite frankly.
The Fox Business web site is an amazing resource there have been so many times and -- Google different topics and come back -- your website and thought wow that's great.
And I know this sounds completely random but Twitter is a really great as source they're so many.
-- had really good business people on Twitter who are very proactive about tweeting.
Helpful links men I've come up with some some really good resource is just by following interesting people on Twitter you know whose opinion I -- -- -- An expert so I think he knows educating your sorry.
Excellent points thank you for the kudos on small business center on foxbusiness.com.
Kate -- would appreciate that.
Thumb -- and school sounds really interesting as well not have a lot of good friends who dabbled in different markets and they're trying.
To start their own businesses and they say it is such an educational experience because you don't realize how much you don't now.
And it seems that people -- into things.
Being very confident overly confident if not -- -- and it seems like backing could you at the end because it's like anything -- to say it's gonna cost.
Ten dollars and it always costs to thirty dollars no matter -- right it's so hard to come under -- well.
And it's it's like construction you know they say that it -- get take that number and double letter -- business is exactly the same plane and and what I always tell people -- Planned and it's gonna cost you twice or three times the amount to start your business that you think it's gonna cost them and then if you've projected that you're not gonna be making money are taking a salary for four -- triple that.
And if you can last a year without a salary without replacing the salary that you had prior.
You probably -- good kick out because just just but you got home -- ahead of time there is no reason I can't think of any business that you need to jump into.
You know today vs two weeks from now the -- a little bit of research.
Checking out some really great web sites and then just.
But also realizing that as a business environment and this is something that I missed early on -- You constantly have to educate yourself you constantly need to take classes you need to take online webinars.
So that you continue to really sharp and not thought you know so that you're not just thinking okay I'm really good at making cupcakes now I can go into the cupcake business is -- businesses and about.
Yes it is about making great cupcake but it's about.
You know the employees in the staff and the distribution and there are so many things.
And if you become a lifelong learner it's gonna be much easier for -- major thank you so much for joining -- certain by the way.
And thank you for opening all of our small businesses out there on diets because it seems like you need to be on want to -- that crucial one earmark.
All right guys we're gonna break starting dragging -- -- Intel -- Well be back with new trends you've probably seen it on television.
Pawn stars and all of that and how this new trend is actually.
A secret to many small businesses success.
Hard -- pond or porn star is have you seen them popular shows about the climate industry PAW.
And not the other one.
And who can't talk about how small businesses and actually all businesses.
-- find themselves applying to get some capital that they need among other things with Thomas purse -- with -- seeks.
Dot com joining us from Boston so desperate times there called for in desperate measures.
Absolutely changes happening during this time yes so what it what it what exactly do you do on what are you noticing in the -- upon industry.
Well we're noticing that banks even though they say they're lending money.
Really aren't says entrepreneurial.
Friendly as we would like them to be.
We're finding us we had a client come to us about six months ago that had a sign purchase order.
And by the time the purchase order got to our company this company of ours.
The order double.
And they only -- enough cash to fill the original order so they went to the bank and said listen we need more money for more raw materials and the -- said sorry.
And so they came to us with an -- and we get Malone and they've been lurching Iverson going -- -- orders due to that.
The -- in that case was a private.
Collection of theirs okay.
All right we do we pride ourselves a little bit on anonymity I -- -- something I was actually out of on I usually won't talk directly bottom.
It it would make you know and even better story if I don't know they upon something that.
With headline driven but nonetheless OK so I guess if you know and I guess you -- on -- is very hard sometimes for businesses.
Who tried it and -- future orders but they're not getting paid from their past -- sometimes that takes more than the big amount of time it typically takes.
And it's it's hard for them there is to being called factoring have you heard of this.
Yet I'm not okay it does not actually just brought to my attention on -- it's.
It's in advance of an invoice amounts.
That you can get from another company but you have to pay big -- in order to get it so they'll give -- your money your money earlier but you have to pay -- So imagine that.
That could be something -- competing within cents.
Had to get sure and without -- in a bank can.
GAAP to that it could.
-- and I don't know what the regulations are with that they may have hoops that you need to jump through.
All I need is an asset I don't need credit I don't need job verification.
I just need -- -- that I can verify.
You I'm looking handsome in my notes and a man couldn't pay his taxes so he pawn his watches that cracked.
That's correct and sometimes in that case I don't know -- that case but I have heard in other cases where they knew they were getting a bonus in second quarter but.
Wasn't coming in and time in order to pay the taxes so they knew they were -- -- get paid.
But they needed the cash up front.
Right right now do thumb do you have any way of knowing whether any of your customers paid their loans.
Back oh sure oh yes we have -- -- you.
-- high -- -- pay -- OK okay.
And the -- actually the industry in general does most people don't understand.
I think when most people think of -- and people going into a pawnshop for a loan they expect that most people lose those items and actually the redemption rate is.
Over 80% come back and redeem their items meaning pay them off -- so they're repeat business is pretty strong man.
And then the repeat business this it's interesting when you watch the TV shows pawn stars and things like that.
Most people are selling their items there.
A lot of people that we deal with had never even known that you come meaning get a loan and a pawn shop because all they saw was selling going on in a pawn -- yet people that on.
Did people the pawn it Detroit -- -- things like that.
Don't want to be on camera because they come back over and over again and they just didn't want to be on camera.
We have to say that -- popular TV shows are kind of helping -- this.
Oh absolutely it's bringing.
Bringing an old industry to the forefront and I -- changing it by taking an online coast to coast you can do it anytime of the day.
And with anonymity.
Let's talk about the online portion of all of this.
Sure -- your website and I'm reading my notes here and and it says that.
Most people don't even know they -- on -- online.
And that's exactly it ninety plus 95% of our customers have never set foot in a pawnshop.
So all they know.
Is what they see on TV is that what people are selling things and a pawnshop.
So on our website we try to educate him that yes you can get a loan.
And here's how long works we -- less expensive than your local pawn -- in many cases -- pawn shops and in one of the states in New England charges 20% monthly.
120% monthly is -- heavy thing where -- are on average 6%.
We also do a little differently than your typical brick and mortar which many people may be familiar with.
A brick and mortar does a month month loan we do -- three month while and we get the beginning of the conversation you and I talked about businesses.
We -- to set it up as a three month loans so if someone comes in.
Needs to make payroll this the end of this month but isn't gonna get paid until middle of next month from their supplier they've got plenty of time to make.
They're payment back to us whereas with the local brick and mortar they'd have to pay an interest payment at the end of every month to keep that -- going otherwise they would forfeit their -- So we set it up as a ninety -- loan if they pay us off early that's great they pay us for the days that they use.
And this has worked very well for both the personal land and for the business end.
And it's different than what your brick and mortar does its lower interest.
So all around a lot of different things Thomas when did you start your online -- We started roughly the 1 September last year and what gave -- the idea to -- it.
Well my family has been in investing now privately.
Is with construction projects and things like that for many years.
And we were searching last summer and a business idea came across and we came across a company in England there's been doing it very successfully.
For about the last eight years.
And so explored their business model and decided how we could put it together and make it work here in the United States.
So one small business helping other small businesses thank you so much -- searching for joining us from Ponte week.
From -- Boston bureau they get everybody for tuning in we hope you enjoyed this Wednesday.
Small business center here I am I think it is on hand to share.
Who -- back here tomorrow with some more fun stories and -- ahead to Friday we have a big birthday to celebrate.
Some -- but we'll have we're thinking about a CS marked by.
Filter by section