Small Business Center 12/05/2012
The small business perspective on the fiscal cliff
- Duration 22:57
- Date Dec 5, 2012
The small business perspective on the fiscal cliff
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-- -- That's small business and today -- Lawrence -- at eight back.
NIC thank you so much for joining us and -- -- at Cincinnati Lauren and on FaceBook.
-- -- -- A couple of small business who is actually sacrificing a lot just to get her products in your -- this is -- ladies.
While that may be some times for the benefit men it's not so we're doing great now nice fancy it's -- The founder and discover peak which is pantyhose tights stockings leggings you name it and your mission is so lady never wears pants again I was so relay -- that you hate pants now I actually like -- And I found that when I wears tight it's our candy has our stockings -- my confidence is just elevated it's taken to the next level and my plans and I found that it gives us the confidence to go exact science a couple of it gives us the confidence to ask that raise it's what -- kinda supermodel facts it's basically in the same equipment.
Plastic -- you just feel better you stand a little taller.
Got yeah I would agree yeah.
But as any woman knows it's hard to find any of comfortable pair of tight stockings misery whatever you want to call it.
-- -- It doesn't hurt -- ways you don't see the lines and -- -- don't care rifts accidentally and many wanted to look nice son your leg and that usually comes at a at a price.
Absolutely so I had -- source incredible products around the world I -- this incredible journey and -- And products that are high a high end and feel comfortable -- don't have the lines are seeing -- they have skills that are -- in.
They don't have the tags in the back they feel comfortable they're not gonna hold you fat friend being that person you want to be like that -- sorry to be better.
Well and let's face it when you're going shopping for -- Macy's has a huge hosiery sections of the Bloomingdale's.
But you don't you know look at the the little.
Clearly laying on the -- yeah see initiator of the fabric you don't really touch -- -- play with that you don't really know what.
-- department now is going to be like seat tested -- -- bringing everyone the best stuff that you found around the world that you can't necessarily.
I hear and I personally test every product that goes into marsh Arabs every month -- -- -- -- -- -- -- High -- anywhere between eight to twenty different products and I get so excited by every single product because.
Everything I try so it's not like you're gonna get something that I haven't personally walked around New York City and and tested for quality in Paris at sentencing.
-- -- -- -- -- -- Probably around a hundred and something right now and I'm constantly -- and and trying new things always down relinquish on them money and and is going to very -- right now stockings and write some -- she can do a whole bunch of things with them.
-- -- comes at a price so I tell us your pricing.
So I decided to have two different pricing structures one's 25 wins 48 a month a month per month.
And the 48 seems expensive but once you try on the stockings you realize the different quality.
And -- you that you feel in them so.
25 gets you one pair of forty dollars gets you one to two -- it's depending on which products you just.
Icon we were talking before this segment and how to convince me a little that I could have 38 dollars -- a lot to spend on aid pair of tights and a and you said it is but they lasts -- they look good.
And you are sometimes buying them from more than 48 dollars and selling them a sense at a loss to get awareness out there that stockings are the way to Jack.
You know I really believe in the products and I think that once women are discovering these types of products -- high -- The luxurious the ones that make you feel -- I mean when you when you do spend that type of money you do get higher quality and different design quality as well.
And so once you try -- you are -- you won't want to get anything else anything else we'll just feel cheap and it I mean not not as fun.
As a business owner and a small business on our new business how difficult -- this to get up and pack -- -- -- -- As a small business he faced obstacles all that time.
My business mentors Marie Foleo and she has this -- Everything is figure out a ball.
And every day that I have an obstacle which.
Always happens and get my big girl takes on.
And I show up and I think that's most important thing we need to have obstacles just to show up and remember everything is figure out apple you can figure out anything that you need to figure out.
Okay and do you plan on designing -- on -- I naming -- and absolutely.
Next fall you'll definitely see a collection had discovered -- types -- and taking an all lists over the past.
Couple months we've been learning from our clients and that's actually where the instructional video that let's take a look at it lets you -- the caption that it would.
Boom boom boom boom and its.
-- -- question comes from -- California Claire asked.
And other colors and that's happening and I'm sure how to incorporate color into my courtroom.
Larry we are also -- the -- every now and hope it's not passing fashion -- easiest way to -- your adamant.
It's -- together every different floods that anyone can -- -- any -- some cool.
And easy -- -- can be achieved my swing keys is that all the remaining Holler abstinence only -- spirits often you can select colors from that next.
But complements it with another -- remember not to be matching -- matching.
-- teaching women how embrace their -- history it seems like if you're taking questions from your audience yes you'd be -- -- social -- Absolutely.
And I love social media.
But it's easy is it for business to get confused with social media outlet to use.
And as a business you have to identify which one is useful to you sentence -- I started using YouTube because they start getting questions from plans on how to -- our products so instead -- focusing my energy across all media outlets I focus on YouTube and it's been pretty six sorry on Twitter or FaceBook.
I and a yes we used -- Is your best outlet it and that's outlet you have -- -- -- Or up look.
We FaceBook update your status with the YouTube -- is that some of them now have yet you know we do a lot of segments especially on Wednesday's -- launches its.
On how to best use social media and the response from different people businesses there's always interest and -- -- different -- -- -- it but I guess as being any.
And see it right now I need to be on every thing you -- just like mass information all the time on the so I'm assuming this is expensive traveling to Europe and all the other places you don't find your products.
On the and then running business.
How are you how are you doing.
And -- currently I do it myself -- Worked and save my money to -- my business everything happens for my own pocket.
We've had such a great following of women who believe in our business and we discontinued wrapped -- singer who are you making a profit.
Right now breaking -- then and he hit considering he started one exactly recently we recently we officially launch in September.
-- -- every every month we continue to -- We've tripled in the number of employees.
And come in and actually mean we use I would ask.
Which is a great platform for freelancers.
So I'm constantly bringing in new great talent for freelance it's been like -- you would you for us to do anything so if I need video edited -- speaking at MI video as if I need to need to do some graphic design -- they can be some graphic design -- and it's a really great online resource already causing a task desk and -- and you can find anybody from around the world at any price to do the quality work that you need.
And I found a collection of amazing people to do the work that I need.
Yeah that's really good point it's testing begins at -- even think that if you are doing these great.
He needed someone to shoot it down and to -- someone to go through -- maybe to help you had a best address the camera to accessorize everything they -- it's it's a lot -- out the last couple that I know.
These small business owner is I give a lot of people a lot of credit for that.
OK so you're -- you get into your own flying CNN.
Yeah maybe yeah.
And I can definitely bring in our own designed -- and also continue to bring in these fabulous -- There's so many small brands are doing incredible things so it's going to be incorporating them with our -- Renaissance -- trying to.
I love pattern and I actually think that pattern our.
You get noticed me walking so far the -- different differentiate yourself from everybody else is to Wear something that's different thoughts and as a female walking into a bar job interview and wearing something that's difference we'll get you noticed.
Lessening many people senate doesn't -- you maybe just.
He knew it or black tie it might be the way to go but it is 2012 absolutely -- a couple of ads and you know a year your unique and you should show you and uniqueness through.
I mean right now I'm thinking candy has -- where would you sell airline exclusively on your side I would -- exclusively on our side of the terrorist yeah I mean.
I when I'm not saying it's retailers but I think right now that.
Online is such a strong it's such a strong presence for us that you continue to do the -- where would you make them.
After I would love to you make -- in -- -- that is my number one goal.
-- a business that supports women and also supports made in the US act so -- I don't he would sit.
How do you go about constructing.
I think it's incredible.
So North Carolina there's a ton of mills that does hosiery and there's -- YouTube video on how to -- -- and you have to watch it I think I have -- on my website somewhere and that.
Your Millon that that I get an honor a paycheck isn't anything that's what it is the president makes hasn't -- Anheuser it has.
I happen because -- -- there you know really aren't going to break right now they do so much for coming home where let's say.
On the -- right now set to its -- the founder and discover peak.
Dot com I believe that -- it.
It's difficult to engage and rational negotiations.
-- one side holds well known facts and proven truth in such lowest thing.
Hopefully compromises not battery.
-- the president doesn't agree.
With our proposal and are outlined.
I think he's got an obligation.
To send one to the congress.
And a plan that can pass both chambers of congress.
I and I.
About before or not.
This book club are you clipped out I certainly am welcome back to the show.
Let's talk about how this this booklet is affecting small businesses out -- the backbone of the US economy.
Who better to bring in men the -- two gentlemen we have Steve called -- president and CEO the international franchise association joining us.
From DC and next he always -- fox the president and CEO fire house something.
I gentlemen thanks for joining us.
Thank you thank you for having us.
Crucial timer coming down to the wire right now just a couple of days left before we potentially go over that -- -- last -- we go over it.
-- money taken -- -- I hope not yeah.
I I don't think there's any any any good outcome by going over the fiscal cliff clearly it would not be.
His confidence that they -- windy -- for the financial markets and I can tell you that our small business owners.
80% of which -- else -- Partnerships -- passive -- through their business.
Are already holding back until they know what tax rates are going to be -- all this clip there is no good scenario.
Like going into that ditch.
From our perspective in the franchise.
Yeah and let's talk about how it affects franchises.
-- he sent a letter that 51 CEOs signs to the president.
Will pull -- part of it right now you -- raising taxes.
On those individual filers who aren't 250000.
Dollars you will further deep -- franchise development.
In the coming years.
Considering the average franchise including franchise fees and development costs is more than 500000 dollars congress must carefully weigh the consequences.
Of raising taxes on these jobs.
Well you know small.
Businesses create 65% of the jobs in this country according to the Department of Labor.
Two years ago the president supported an extension of the bush -- tax cuts.
In two years ago the unemployment rate was still around 8% it's all around 8% we're dealing with 23 million fun and play people underemployed people want you let you know looking for work.
Yeah I don't see how anything has changed so why in this environment to raise taxes on anyone especially -- job -- in this country.
And here's the other thing mark now the president keeps talking about 2% 3%.
Those 2% 3%.
Taxpayers' -- and 941000.
Businesses and if we jump over this -- That pitch immediately according to -- -- onward and only seven and 141000 jobs I think every job this economy is critical right now.
You know doing more and I would added I don't think anybody can put together a plan that -- us out of this fiscal mess that doesn't include growth.
Growth is just a mandatory part of the equation over the short term in the long term.
And it comes to small business others use our own a brand is an example firehouse solved -- have 300 franchisees trying to develop additional restaurants.
With my existing operators are looking to add an additional restaurant.
They have to save earnings to go for to be able to get the next loan.
So every dollar and it's that's taken from them in the added taxation or -- no no matter no matter of -- destination.
He puts them one dollar further away from having in our case the next 80000 dollars they need to go to the bank.
And get the next loans so.
It's it's indisputable that it at the very least it's going to slow down the pace of growth slowdown the creation of jobs and that's not just jobs in our restaurants that's jobs for the equipment manufacturers that.
But it that we spend 7080000 dollars on equipment package over a 100000 dollars in construction buildup that has take place.
And that's just all -- at the very least slow down and we can't afford it.
Slowed it's a huge triple down effect I believe each -- franchise creates forty jobs -- On average estimate franchise in history -- arm and had any idea when any warnings well we just that a member survey.
-- we asked our memories here.
In fact we went over the fiscal -- what would that meet your business 79% of our members said that they would completely.
A halt growth plans and you look at.
The franchise model and a lot of our franchisees have development agreements with their franchise and work then they have two or three or four establishments right now -- may have an agreement.
For ten or twelve or fifteen.
And so without tax certainty.
Or we raise taxes on small businesses that is not a prescription for growth in our industry.
My son how many -- franchises is firehouse subs half.
Currently we have over 350 we have 293.
Our existing operators anywhere from single unit operator -- -- is twelve units and virtually all of them.
Are trying to develop their next restaurant -- the norm model we -- operator and owner operators are gonna develop multiple locations.
Right and what it wasn't number one thing that those owners of this franchise this city.
I'm sorry can you beat -- what is the number one thing that the owners of those specific franchises say AT.
In that they need certainty.
But they certainly don't want to see taxes increase that are -- -- take disposable income away from their consumers.
And and they don't want to be put further.
They don't wanna have their next investment opportunity taken further out of batted out of reach they're working too hard.
You know there's I think there's a a bit of misperception and even about.
Fold since small business that lets say are making 300000 dollars a year and Andy and the tax increases -- impact that that additional 50000 -- think -- That's enough to really come in in my situation that might be a four restaurant owner.
That has taxable income of 300000 dollars.
But in those four restaurants they also have four loans.
And probably all blended.
I've heard about the midpoint of those loans so they have been total about a 120000.
Dollars of principal payments they have to make during the year -- comes after after tax income.
So there you're nowhere close to in terms of real income for themselves personally anywhere close to that margin so.
So they're being penalized taxed and much higher rate in the in that situation.
Then other folks who -- in actually a lower income brackets real income brackets from compared to -- -- -- Hello -- my dad and went quite well one more point you know the president -- -- during the campaign as well as governor Romney talked about the importance of small.
This -- to the growth of the US economy.
And today he's you know he's not a charm offensive with the corporate CEO's many in which are done.
The jobs council which -- up by most accounts was only.
And effective impact right now he's talking to a group of CEOs and business roundtable.
And course we think corporate tax reform is important for us as an industry in the country any more competitive.
And a global conflict cannot come on the backs of the small business community again that create two thirds of the jobs -- -- jobs in this country which.
Why he had been pushing so hard.
For comprehensive tax reform and so if the corporate CEOs can't see that people many of which an argument here for corporate tax form that you gotta have small business at that.
Look we talk about the impending -- in the fiscal cliff and tax rates and.
Yeah not to mention health care and that's gonna take a bite out hiring to lead those cost a -- them -- dying you.
You hear the others healthcare expenses from many of the usually -- well it's not only the -- costs and health care and implementation.
-- it's also -- dealing with a lack of access to capital especially that's fine I'm from north.
What else in the aggravate it again it's not a.
Description that we -- -- and -- had.
-- -- I was gonna add -- game.
Our firehouse subs is -- in 2011 we were the fifth fastest growing restaurant.
Brand in the country.
We will develop even under the trying circumstances that we have now a hundred restaurants this year we're growing at 562 our plan is to involve more than that next year.
But the more barriers that are thrown away the tougher it is going to be -- to contribute to growth.
Administration -- congress just doesn't seem to understand what businesses need to hear thank you so much you made my job really easy.
But your perspective at hand as he gets him any questions I think out there and done -- have a great dating for coming -- -- -- -- -- -- -- -- -- website of the international franchise association now franchising dust or.
And are we gonna break -- heading to are going to go to break we'll be back right after this.
Welcome back well -- very young onto the norm in Mississippi inspired by 9/11 then.
Is the subject of our next story foxnews.com.
Reporter Gary tiny joining us with more on that hi there.
Hey -- are you doing your head to head we don't have much time so we want we want to hear about everything someone elected taken away.
-- this young girl -- is now seventeen years old Emily Wald an issue is the president and CEO of her company.
Flag pole express here's your story.
Far from Manhattan Pennsylvania and Washington DC -- -- Mississippi six year old girls patriotism after 9/11.
Has grown into a thriving business.
Really how funny even though the deficit Stalin and can't I'd like many let's.
Let's -- -- Americans.
-- -- in her dad built the flag -- to hand the stars and stripes in their own free -- -- -- -- life and I as a little I didn't let it -- ever almost immediately neighbors and friends started asking for flag poles in their homes as well in eleven years later business is booming -- your.
All we want is for people to have bibles and be able to happen in the front yard because as American -- we need to -- that we're proud.
-- company flag pole express has no built delivered and installed more than 400 flag poles at homes and businesses all throughout northern Mississippi Memphis and imports of Arkansas -- -- -- The best the people get each flag -- sells for a couple hundred dollars and eleven years she's made more than 100000 dollars in profit.
This is -- country that the American dream as possible and really.
That's what occurred -- this with her little business.
Italy's flag poles are made of heavy duty -- so each one -- between fifty and eighty pounds now that's a lot of weight for a teenage girl so her dad helped chart would most of the installations.
But other than that she pretty much does it all I don't look like one of those hard -- cell Spartan family plans to study international business at college after next year and says wherever she goes flag pole express this coming winter undoubtedly get a -- -- -- as long as I possibly can play -- and a black kids.
Now this last year has been the best year of business for flag pole express.
In from last year to this year business has grown by 47%.
Lower case what.
-- like all of that money 100000 dollars in profit for girl like seventeen.
As -- makes about eight to 101000 dollars a year for you know a young kid that's like winning the lottery I.
I'll yield similar things that people with a lot of your review she bought her car kicker -- to Disneyland.
Over Europe now she's saving up for -- -- tuition.
Said he she's enjoying life to the fullest York international business -- to tell you where Johnson out.
She's not sure yet but she's a really Smart girl as you can tell straight a student 31 on the ACT not to mention her own business so.
You know she's not gonna have a hard time picking where she wants ago.
Exactly nice read maimed children there.
Furyk thanks -- much does a -- religion of the college.
Brigham young university of way and you just totally -- dating me because he said eight CT plan I think that I think our math.
CAC today that the big test now that's.
If it's not it's something we -- try to forget every once in terms -- -- our experience.
Gary any -- -- so much and -- you everybody for joining us today lines in the name we'll be back here tomorrow.