Small Business Center 01/02/2013
How the fiscal cliff will impact small business, top challenges in 2013 and how you can become an authority in your industry with 7 simple steps
Jan 2, 2013
How the fiscal cliff will impact small business, top challenges in 2013 and how you can become an authority in your industry with 7 simple steps
Jan 2, 2013
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Going -- me today.
So it is Wednesday that means it's our small business Wednesday.
I was Monday all day so that's going to be good company and weeks it's gonna feel short but I've been confused holiday.
-- nonetheless it's it's a short week but a busy week of course with the fiscal cliff -- solved for now.
And a potential super -- approaching in February but.
We're gonna start talking about how the fiscal -- affects small businesses with gene marks a small business advisor.
And a small business owner joining us from Philadelphia.
I seem happy to -- their -- They weren't happy 4013 year nice to see you again.
Good to see through -- so we're back at work today we just wrapped up 2012 and you have some mom.
Top challenges that you think small businesses like yourself are going to be facing in the new year what are those.
Well I mean there's there's a few I mean I -- a few and some of the columns that -- -- and I'm looking ahead at 2013.
And one mean the first when it comes to mind of course is.
How we're gonna sort of you know it digest and handle the whole fiscal cliff debates.
Obviously this -- -- that were made you know last night what's gonna go into effect today.
Is gonna result in a lot of higher taxes for small business owners out I'm throwing a lot of our clients is on myself is immediately have dinner with your accountants.
I know it's not always the most fun to do this or bring like a big -- -- abysmal along with Leo there's still some time decent tax planning because -- attacks are going up for all of us and in 2013 but that's one big theme for this year.
Yes you know I.
While 99% of us were saved from the tax -- everybody will see -- tax -- because the payroll.
Tax cut would not extended so that Social Security taxes six point 2%.
Which means it can -- a 100000 dollars a year.
That's 2000 dollars more in taxes that you will be -- so.
Everybody will see their taxes go up and that's certainly affects small businesses.
What do prepping for health care changes and a health care premiums have gone up 6% next year on average our small businesses present for that.
But if it's pretty say that's -- Israelis say like oh health care premiums are going up 6% that's life.
Amazing when you consider what they have been going up in the past I mean sometimes some years been.
Fifteen or 20% so a mighty reserves 6% is really is in every avenue numbers in there.
It is the average but you know -- 2013 is absolutely going to be a year a big theme of a deciding what you're gonna do with -- Carolina I mean.
-- health care legislation goes into effect on January 1 2014.
Now if you have more than fifty employees you've got a big decision to make.
Do I continue to provide health care insurance for my employees are doing not do that and pay the penalty and have them go to their local exchanges.
Even if you're less than fifty employees is still decision for you to make because there's an administrative cost to carry on health care insurance.
And -- the overall burden of paying for health care for your employees so.
These options and -- and -- -- and starting January 1 2014.
So here we are on January 2 2013.
This year if you're running a small business you have to have a conversation with your benefits consultants make sure you fully understand the law that's gonna take place a year from now.
And make sure -- thinking ahead about the decisions that you got to make.
-- and it sounds like it's so far away because -- on the issues he gets there first we just kind of got through the tax code.
Now we have to get through the spending cut issue and then maybe we started thinking about health -- you know you -- really -- You know what I mean by -- -- her -- -- -- -- -- you think because if you do decide that you're gonna like drop your health care coverage you think it's best for you we -- company your employees.
You know you really can't be making that decision on December 31 of this year you really want to give your employees time to adjust.
And -- yourself and just internally so he had that kind of decision really need to be made sometime in the summer.
And you know as you know time flies those kind of thoughts need to be thinking about right now.
And you have -- the growth and outsourcing that's something that's on your radar -- actually liked that.
For next yeah.
I mean I've gotten a kind of game while noticed from exterior it was a big boom -- last year -- and I'm I'm Tom a lot of people boy investing in an outsourcing and outsourcing technology any.
You know Lauren you know if there is still a lot of uncertainty out there the economy is still growing at a very slow rate.
On the -- of the discussions with the fiscal cliff Health Care Reform it's holding back a lot of us from hiring people I know myself.
I'm trying very hard not to bring new employees on the my company we have ten and we did -- ten in the past couple years so.
What are we doing more outsourcing.
And I and I had to tell yeah it's easier now than ever.
To outsource I mean they're they're really good web sites out there you Lance is one of -- for example or.
Guru dot com or even Craig's list if you want to take your chances there ought to find good people around the world.
-- when you find people there's all sorts of technology that you can use to engage them and have -- connecting to your office and collaborate.
So a lot of small business owners -- taking a hard look at outsourcing.
A hard look at the technologies that are out there to -- because it really does save them money -- it you know keep -- back from hiring somebody full time.
Get them we've had some of those companies like he lands right here on this show I want to talk about crowd funding for a little bit we have a couple of seconds -- last last.
How big of a -- DC that growing are you thinking about using it had to give up and.
It's usually personal crime -- when you look at my company I've been around since 1990 force out.
I'm not a startup anymore and I don't think that my company a traditional small business is the kind of company that's really going to be taking advantage -- -- funny that that's my my gas.
It's really going to be for start -- companies.
If the SEC relax its rules of some of the legislation does take place to make it easier for start -- companies to use crowd funny.
I think a lot of venture capitalists and investors are going to jump all over it and it really will be helpful for a lot of start -- businesses but.
-- remember -- I mean there are just.
Thousands and thousands of young companies that start up every year there's only a very small percentage of them that really would be applicable to the kind of financing that crowd funding would provide so.
We're really talking about just a few that would really benefit.
Jean Max thank you so much for coming I'm small business advisor in honor of the marks group can find you -- -- -- -- also an offense.
Your book we'll show on the screen right now I'm thinking there enjoying.
Enjoy the day I don't trust you take that up.
-- already are gonna go to player now and out will be back with mr.
Peter Barnes from Washington DC right after -- breaking down on some of this fiscal -- -- for us it's awfully confusing.
They'll soon find out.
Welcome back everybody our right to continue our small business Wednesday.
Spent so -- -- gonna we're going to.
A sound like now believe.
On this -- the gays are 257.
The days are 167.
The motion is adopted without objection a motion to reconsider is laid on the table.
RA -- look confusing sorry that's okay yeah -- a year are you gonna help us out right now Friday in Washington has had to I don't know now okay thank you so much.
Peter did you work for all of New Year's Eve and New Year's Day.
Yeah pretty much half half half -- the war and we were here in the office me and Rick Jensen you know -- tag team in this thing so if if I wasn't -- he was aired you know there was when he pours out.
I know in my Blackberry away is.
Just on fire all week and I couldn't -- keep track but thank you for following it.
Still there -- we get to the small business angle of this fiscal cliff crisis being averted for now.
What's the latest with the now we -- -- obviously the markets like it what can we expect as.
Well where or where again it is in the president first all present gotta sign the bill but.
That will happen at some point will we got was from some guidance from the Treasury Department.
And they are asked that.
They need to have all of these new tax withholding.
Tables and rates and everything.
In place by mid February but really that on them on the top of the rate changes the big one that we saw of course was the increase in the top marginal tax rate from 35% 39 point six.
For families making over 450000 -- individuals making over 400.
That that is -- return to the Clinton Era top marginal rate that.
Is one of the biggest changes the other really big change in this that that you know of the four trillion dollar price tag of extending pretty much.
-- most of the bush tax cuts for pretty much everybody.
-- actually this patch to the Alternative Minimum Tax which they do every year.
That that was about half of this you know every year they have to make sure that about thirty million people don't get.
Caught up in the Alternative Minimum Tax it's about ninety billion dollars a year and more extent in the out years.
That was almost two trillion dollars over ten years and so that is a big thing that is gonna help a lot of middle class taxpayers autocrat.
So but -- Any end and had this -- to affect small businesses do they know yet how they'll be affected.
Yeah -- I think we've got some certainty on that in you know we are we aren't going to see.
Pay their taxes as individuals either through partnerships or limited liability corporations.
Or those kinds of structures they pay at the individual rate.
And again it -- -- the cut off the threshold is for fifty.
And 400 for individuals so the so that higher tax rate is going to affect some entrepreneurs and small business owners.
Who paid who make that kind of money in and will be paying those higher taxes.
And so I think it will affect.
Again at the -- affect those hiring decisions and investment decision eventually.
At the margin but what most small business owners you know.
If it's a husband the couple who are make and 5075000.
They each and they're working eighty hours each show -- their family restaurant.
There they're not going to be paying.
Any higher income taxes at least under this deal last night.
OK so now fall below that 400 yeah they'll applaud the threshold right but some but some will be affected and we just and we don't know yet yet a million taxpayers.
Who do you account for.
Billions and trillions of dollars of small business what is defined -- small business income they do employ.
The fact that lots of millions and millions of people.
We'll see you have to see how it shakes out.
-- -- I guess we have some -- -- now and definitely investors breathing a sigh of relief Peter -- thank you so much.
Have a great -- and Lauren thinks about -- as we talk about this fiscal cliff Steele and the fact that.
For every 41 dollars in tax hikes this is the number being thrown -- we only have a dollar.
In spending cuts that has been achieved that ratio again is 4121.
And that's another problem that's what's called the super clip which is coming.
In February when we might.
Have to raise the debt ceiling or we default as a nation.
And now we have to address all of these spending cut issues.
Cities are more issues -- small businesses as well as individuals are facing and to talk more about all of this we have John.
Aren't -- the CEO of the small business majority joining us from San Francisco John good morning.
Good to be -- -- happy hair.
Happy new year saw just like to take it away how do you think small businesses are affected by.
The deal that we have on the on the fiscal -- Well I think this was in is good deals we can get -- it was necessary to create some -- in the market.
It protects the tax cuts for -- 97% of small businesses.
It extends some really key.
-- business tax provisions like for research and experimentation.
Credit -- deduction four.
Capital expenditures and some key clean energy.
And it reduces the deficit by a 615.
We have a lot of work to do as a lot more to do but it is -- very necessary first step in the process.
It is so so is it safe to say that about 3% a small businesses will make.
Or a year or more -- -- that the numbers -- -- -- It's actually less than that is 3% would have been over 250000.
It's probably more like one or 2% over for a fifth 2000 regardless it's it's it -- it protects the cuts for for the vast majority of -- chances.
Less good went -- what this payroll.
These payroll tax cut expiring though as those rates revert back to six point 2% that affects everybody right.
Everybody will -- -- -- like this year.
No absolutely and in fact -- where we're disappointed that that didn't get continued it didn't seem to be on the radar screen of either Democrats or Republicans unfortunately.
And -- -- right -- it's gonna have an immediate impact on negative impact on small business.
But you know by and large field -- overall deal was good but that that is a disappointment or agree with it.
What's your message to congress right now.
If you could say something directly to them -- -- -- -- Well I say first of all I'm glad that this was a bipartisan effort and hopefully it heralds the beginning of a new by a bipartisan focus on on solving some of these problems.
There's a lot of work to do.
We still have to deal with the deficit but more importantly we have to do it in a balanced way our polling of small business owners shows that there's still -- bigger concern.
About the economy growing and there is about the deficit and in fact we're never gonna pull out of the deficit.
If the economy doesn't doesn't grow so there needs to be a really good faith bipartisan effort to to deal with to deal with.
Our fiscal problems going forward.
Are you confident that next month when we have to deal with spending cuts and the debt ceiling are you confident that bill.
Felix who worked together then I mean technically we did go over the fiscal cliff because we got -- deal after the new year are you confident that that next clip will be able -- it.
To solve it in time.
Well I think were heartened by an effective this was truly a bipartisan deal I mean when was the last time you saw an 89 to eight vote in the senate has been difficult to get even a post office named.
Hello for for with that kind of a vote so.
You know we we like look at this optimistically.
There is a ton of work to be done.
And we have to make sure that that if any.
Changes we made in the tax code.
Are targeted in a way that benefits small business there's a lot that we can do with the corporate tax code.
There's a lot of of fat in the -- of deductions and credits for.
Big companies for offshore for -- -- -- money overseas that does not benefit small business has a lot more opportunity to.
To attack the deficit by going after those sorts of problems.
-- you know responsible.
-- spending cuts that don't hit the middle class don't have small business don't take money out of the pockets.
Of America consumers right now we think would would make a lot of sense on the other a lot of difficult decisions to make I -- were heartened by the fact of the system a bipartisan manner.
Right but -- so a lot of pessimism out there and -- gonna pull some sound -- now.
If you take a listen we can discuss it on the other side but this is what lawmakers have to say about about the negotiations take us.
Virtually no one believes.
That what we have before us tonight.
Is a long term solution.
To this problem the problem as we set up stream our fiscal -- we -- -- look back on this night.
-- -- Gap itself.
That's sounds a little pessimistic -- -- and and Mikey said the big problem is economic growth because that's not going to be yours looks like it won't be as robust this year.
If you -- want to call it robust in 2012 but certainly less -- it.
Less growth ahead.
Well I think we're seeing some signs that the economy is rebounding and unemployment lower than it's been in over four years.
So this is good we do we get some polling about two months ago -- -- show that business owners were actual business owners are actually.
More optimistic than they've been a long time they were planning to to hire.
On its cautious optimism and as I said in his obvious -- -- a lot of work for congress to do.
And we -- have a long way to go forward we've recover from this recession.
I know that's one thing I.
It's famous recovery that so shaky and so tenuous that.
But it's so -- that can break at any minute and -- while this discussion of spending cuts and tax hikes becomes even more crucial.
Absolutely I mean that's why it's so important that congress the new congress come back in and get back to work on -- for almost.
And you know the fact that I mean on the one hand the fact that there -- some deadlines ahead you know create some some -- on the other hand.
It may be a spur to a new congress a lot of new members coming and with new ideas to to sit down and work together.
And which -- -- correct if we don't if we don't.
Focus on continuing to grow the economy keeping money in middle class hands in hand middle class -- are the consumers of small business end of products and services.
And make sure that any changes we make our targeted that are targeted such a way that they don't adversely impact on the vast majority of small businesses and -- class consumers.
I think congress and the president can play a role in continuing to push this recovery forward.
Well let thank you so much John Aaron -- the CEOs small business majority a website small business majority dot -- is on our screen.
Thank you so much for coming on -- day there in California.
Thanks for having me think there are and -- to go to break now we will be back right after this.
Welcome back online Cincinnati my head hurts -- content based home -- -- just teed up for another one next month but in the meantime let's lighten things up.
On this small business Wednesday edition with Louis -- is joining us once again they creator of linked influence and the author -- -- working.
We're talking about seven steps to becoming an authority in there and kisses -- at the top -- reasonable -- -- no go for an over the fifth.
Literally on the brink at the greatest good we are still using the black I know I -- -- I -- it's in my bag and instead I care.
I'm comfortable with what's up with excuses next time and a guy who got got it okay exciting -- likely there.
Well there's really seven -- steps and I'm not sure you have the seven -- wearing black.
The first one is thinking like a leader and I think that's.
Think about getting by next month.
And leaders think about Kenya getting ahead for the future -- long term so.
As opposed like oh how many of five for next month how many -- for next month or two day or how much improvement -- right now.
Even if you're struggling right now start thinking about next year five years on the road ten years -- worked on the road you know start thinking like the leader.
OK so leaders have planners and those include.
Multiple years of and exactly exactly all right and then of course chipped in at eight.
You've got to innovate so.
Gotta be willing to take risks I think him and the average person isn't willing take the -- so once you start thinking like -- then start.
Acting career leader right and that's a reader yes and betting that this has takes -- -- -- to right.
And you've got to start he -- -- our enemy.
A -- but is that -- with.
-- what does that -- mean.
It all depends on what you're she is your business but I think you've got to be going to shock people -- the -- -- to shock factor when I think of here's an example we all use -- will notice they come out with something new on their -- their home page or something it is time to start shocking people in the freaks people out.
-- then they take a step back.
The three months later people don't realize they're still doing the same thing -- -- three months ago but since it took a step back we move forward -- shock people first.
Bring it back and can even if that means -- negative.
It is so he has a one off still there never was like I'm getting off FaceBook finally once and for all they still stay on and that's just and that means that.
-- -- communication open meaning capable.
Yes some personality and to things that.
Guess that's -- -- you also want to keep the lines of communication with your customers and employees and and other business partners.
So you don't just one of the you know.
Internalize and on the information yourself you really want to build relationships when I mean she points -- -- communication open building relationships.
And making people feel like you really care.
Isn't anyone listening to chatter and this is actually really funny.
He or she says seven steps to improve your small business and answer is and all the same one through seven pray.
Prayer they've been there for Christmas pessimistic that a very pessimistic -- leaving it up -- If you wanna be average thinking that you could be a pessimistic but if you wanna be a leader than you've got to be -- -- -- -- -- -- stay here respect your time.
You can't solve everyone's problems that can try to be everyone's savior you really don't think of the big picture in minds -- and only focus on those things is gonna help.
Prior to greater good of all prioritize -- also don't try to.
Be different one right here for those are really needed and try to think about it who are some good leaders.
What do you think Steve Jobs agree yeah.
Right I mean he's he's easy one think they're right.
I don't know.
But in my doubt to be leader yeah area have to say what he did he was he's a business on small business insurance yeah.
I so I am here to buy you a bit later -- -- of these thank you liked it very getaway with where it's and it it there's -- Hiding your list here at this -- one out of the seven -- since keep learning.
-- you know when you think you know and all he'd tell you really -- You want to make sure you keep right growing learning.
-- like to surround myself with extremely intelligent.
Wise individuals I like to say I'm always the dumbest person in the room and then -- -- them doing that I'm always learning and growing among people.
Yeah I like that they don't something -- now always something going and -- side.
Two someone else's opinion that I you can take from RA.
And -- -- and everything else.
-- -- -- -- if I don't somehow related thirty seconds left what isn't it since January 2 it's very happy Wednesday and Sunday -- I think the most important thing is really to start thinking about the future.
As opposed to in order for stardom business -- sort of thinking about like -- to make money for right now -- in the morning for next month.
Couldn't pay my employees was -- -- and got -- -- for sure I thought.
Does start small build up the small -- from North America I think.
Once you've configured your basic needs of business small dishonor we've got I think OK what's gonna happen next -- two years and start really innovating and creating something interest -- for people talk about.
Start changing industry.
Horry can -- it big -- 323 cents.
If somebody else does it.
Let someone else do it if it works take the credit if it doesn't work blame him.
That's because -- whole new chat that you know.
Isn't it we explained in the top of the cell it's now in the slightest grain and actually it's much -- for me to read everything so thank you everybody for.
Chatting with us and thank you Louis -- nine -- your website and your book on the screen.
And see everybody back here tomorrow which is Thursday -- -- -- tomorrow is there's definitely a all right bye everybody --
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