A record 480,000 new entrepreneurs chose 2011 to set up a small business. Those who made the move to start a company in 2011 along with the rest of the small businesses in the United States accounted for more that ½ of the private sector GDP and 70% of new jobs created in 2011.
With 2012 shaping up to be a much better economy, ask yourself, “is it safe to set up a small business?” Or, “Might it be safer to start a company than to hold an average job in today’s economy?” The answer may surprise you. Statically speaking, if a small start up business lasts 3 years that Startup Company is far more likely to be in business next year than the average American is to be employed in the same job for 3 years.
Don’t get the wrong idea, to set up a small business is not an easy proposition. 35% of those who attempt to set up a small business fail out of the box or within the first 3 years. Let’s look at why; here are the top 5 reasons those who set up a company may fail before they even have a chance to prove their unique business model works:
1) Lack of a Professional Business Plan
2) Poor planning and over spending on their attempt to set up a small business
Top 5 reasons efforts to Set up Small Business may fail
3) Lack of a Marketing Plan
4) Poor or nonexistent Bookkeeping system in place
5) Lack of Graphic, Logo and Web Identity
The pitfalls that kill a startup company can be avoided completely by simply using a professional small
business services company. There are many out there, but BizCentralUSA has helped over 12,000 set up a small business successfully since 2003.
At BizCentralUSA, we believe in delivering tried and true solutions and applying those solutions to well qualified entrepreneurs who wish to set up a small business correctly. Our success rate is far higher than the national average success rate of those wishing to start a company without assistance.
At BizCentralUSA we know how to quickly and efficiently work with you to set up a small business starting with a working business plan. We will have one of our Business Consultants work with the Startup Company to develop proper
Navigate rough waters to Set up a Small Business
bookkeeping system, Marketing Plan and adjust budgeting and Human Resource needs. BizCentralUSA can even offer Web, SEO and Social Media Services, along with the beginning of unique branding, brand management and brand awareness.
Don’t go it alone, it is rough waters out there when you want to start a company. But with a friend in the Business like BizCentralUSA, a friend that has helped over 12,000 clients set up a small business, many just like yours, the playing field is leveled!
Here’s the best part. We are up to 40% less expensive than our prime competition, LLC.com and LeagleZoom.com, because we can be. With BizCentralUSA there is an additional benefit
Set up a Small Business is smooth sailing with BizCentralUSA
BizCentralUSA is proud to help Set up a Small Business with live phone service!
beyond just the lower price, you deal with a live business consultant, and a live staff! We, at BizCentralUSA are available by phone at 877-857-9002, In a world that is ruled by the internet and automated operators, we have trained consultants standing by ready to help you. This is business help with a human touch.
Statistics are on your side, it’s time to set up a small business now! Start a company with a friend in the business like BizCentralUSA, and its smooth sailing in 2012!
If you would like more information on the full range of services offered to Set up a Small Business, please contact BizCentralUSA by visiting www.BizCentrallUSA.com or by calling, toll FREE 1.877.857.9002. Please follow us on Twitter and Like us on Facebook to receive free daily tips and tricks as well as notification of our FREE Webinar series on the right way to Start a Company!
Across the nation, 5.7% of all adult women are entrepreneurs. Approximately 64% of women, with personal net worth of at least $5 million, created their wealth through professional careers. That’s good news for today’s up-and-coming female entrepreneurs looking to open their own business.
The number of women owned businesses continues to grow at twice the rate of all U.S. firms (23% vs. 9%). There are an estimated 10 million women-owned, privately-held U.S. businesses. Sectors where women owned businesses are making exceptional strides over the past 10 years include Wholesale trade 283.4% growth, Health Care & Social Assistance Services 130.0% growth, Arts, Entertainment & Recreation Services 116.8% growth, and Professional, Scientific, & Technical Services 82.7% growth. According to the Center for Women’s Business Research, women employ 12.8 million workers, or one in every seven employees.
Women start a business for both lifestyle and financial reasons. Many female business owners run businesses from home to keep overhead low. Women, like their male counterparts, understand the value of flexibility, empowerment, and challenge inherent in owning and operating a small business. Increasingly, employers will compete with this option for talented female employees, as women grow even more confident in being their own boss.
Male and female priorities for businesses are often unique. A recent study found that 79% of women business owners are concerned when selling their business about the buyer’s plans for the business compared to 52% of men. Women are also more concerned with passing on their businesses to their daughters than their male counterparts (30% vs. 11%) are. Women who start a business are less likely to have a college degree in their specific industry, or first-profession degree, than are male entrepreneurs. They are also less likely to get a job in a Ph.D.-related field. Women are also more likely than their male counterparts to take advice, an important skill needed as a new small business owner.
The majority of women business owners in nontraditional industries (85%) believe there is no disadvantage to being a woman or that it is actually beneficial. This is particularly true when setting up an official woman owned business that applies for government contracts.
Federal law requires that certified WBE women owned businesses receive at least 5% of all Federal contracts, yet less than 3.2% of all contracts are awarded to women. While some people might find this statistic discouraging, in the eyes of this author that shows there is 1.4% or over $6 Billion in untapped moneys targeted at women business owners who are ready and able to meet the governments needs. This is particularly true in four consistently female under-represented businesses: Cabinet Making, Coating and Engraving, National Security and International Affairs, and Other Motor Vehicle Dealers (i.e. all terrain vehicles). While there is much to gain from obtaining WBE certification it is not a process to enter into lightly and may be in the best interest of the firm to seek assistance from a professional to further understand qualifications and requirements.
Some difficulties for businesses are constant regardless of gender. The greatest challenge for women-owned firms is access to capital, credit, and equity. Over two-thirds of women owned businesses reported barriers to working with banks. About 76% of women owned businesses financed their start-up with personal capital. Women are three times more likely to utilize credit cards for short-term financing than their male counterparts are. Only 60% of female business owners turn to banks for long-term capital financing at all, leaving a large 40% market of untapped resources for banks.
While bank financing can prove difficult for women, things are not as gloomy as they appear at first glance. Over half of all women business owners (57%) have a line of credit for their business and 41% have a commercial bank loan. Many women business owners are better at establishing sustainable growth because they rely on using business earnings or private sources for both short-term and long-term capital needs keeping them out of unneeded debt.
Having bank financing or a line of credit is important for all business owners regardless of gender and a business plan in the fundamental first step to begin applying for bank capital. Women like their male counterparts, are taking the steps they need to achieve proper capital and financing through banks and avoiding the higher interest rates offered by credit cards.
In conclusion, whether a woman or male entrepreneur, the tasks and obstacles they will face in many cases will be similar, it is how they overcome these hurdles that will define the success of their business. If you start a business, no matter the type, it will always be critical to do the heavy-lifting of research and business plan development.
The WBENC is the Women’s Business Enterprise National Council. It is a national council that certifies women owned business throughout the country. There are many benefits of getting a minority business certification through this agency. From gaining useful access to valuable resources and capacity building programs to chances for women owned business recognition awards and promotional opportunities, there are dozens of benefits to reap from the WBENC certification.
Access:
Being a certified member of the WBENC allows you to access current list of supplier diversity and procurement executives at hundreds of major U.S. corporations and federal, state and local government entities that accept WBENC certification. WBENC certified businesses also have formal and informal opportunities to pursue business deals with National Corporate Members and other WBENC certified businesses.
WBENC certification gives women owned businesses the opportunity to attend WBENC’s annual Women in Business National Conference and Business Fair, and are eligible to participate in face-to-face match making sessions. Additionally, WBENC certified businesses are automatically included in WBENCLink, WBENC’s Internet database of certified WBEs, which is accessible by WBENC’s Corporate Members and other certified WBEs across the country.
WBENC certified businesses are given eligibility to receive sourcing opportunities through MatchMaker365, WBENC’s new online business matching, scheduling, and tracking portal, which helps corporate buyers identify and meet the right WBE suppliers and obtain the right products or services. WBENC certified businesses are encourages to partner with other WBENC certified WBEs to pursue other business opportunities to grow their network and profit.
Capacity Development:
WBENC certification gives women owned businesses access to a number of capacity building programs and activities. Some of these include: eligibility to receive a Dorothy B. Brothers Scholarship, eligibility to participate in the Tuck School of Business at Dartmouth, workshops and keynotes at WBENC national events, Webinars, WBENCLink, MatchMaker365, “Just in Time Learning Series” by Susan Bari, access to community of support among WBENC certified WBEs, and articles in WBENC’s President’s Report and WBENC News on website.
Recognition:
WBENC certified businesses are given eligibility for regional representation and national recognition as a Women’s Business Enterprise Star; eligibility for recognition through WBENC’s Applause Award; eligibility for International Luminary Award; and eligibility for recognition through the William J. Alcorn Leadership Award.
Promotion of the Business:
WBENC certified businesses are given use of the WBENC certification WBE seal on their marketing materials, which identifies the women’s business enterprise as certified through WBENC’s national standards and procedures, use of WBENC press release template to announcing the business as newly WBENC certified.
WBENC certified businesses are given eligibility to promote their business through sponsorship of WBENC national events. A number of promotional opportunities are provided in sponsorship packages. WBE Chair opportunities are available and open to every WBENC certified WBE. Although only two WBE Co-Chairs are selected for each national event, this sponsorship opportunity includes year-long promotional and exposure benefits.
WBENC certified businesses are given eligibility to promote their business in a 60 second video on the Elevator Pitch located on WBENC’s website and eligibility to promote their business on WBENC Social Media profiles.
Advocacy:
The WBENC drafts papers and research developed on key women business issues and offers opportunities to participate in surveys so that each business’ voice is represented on key issues, and improves the representation of women business issues in key forums.
There are many benefits to becoming a certified member of the WBENC. As reviewed, the WBENC minority business certification can be key to major access, development programs, promotional activities and advocacy that is key to ongoing growth and development. If your business is majority owned by a woman it would definitely be in your businesses best interest to join and begin reaping the benefits of WBENC certification.
There are many certifications that can greatly benefit small businesses, such as: WBE, DBE, MBE, HUBZone and more. Yet, one of the least understood and most often misunderstood certifications is the SBA 8a certification. The SBA’s 8a BD Program, named for a section of the Small Business Act, is a business development program created to help small disadvantaged businesses compete in the American economy and access the federal procurement market.
In order to qualify for the SBA 8a Certification the business must:
Be a small business
Be unconditionally owned and controlled by one or more socially and economically disadvantaged individuals who are of good character and citizens of the United States
Demonstrate potential for success
The SBA defines a small business concern as one that is independently owned and operated, is organized for profit, and is not dominant in its field. Depending on the industry, size standard eligibility is based on the average number of employees for the preceding twelve months or on sales volume averaged over a three-year period. Examples of SBA general size standards include the following:
Manufacturing: Maximum number of employees may range from 500 to 1500, depending on the type of product manufactured
Wholesaling: Maximum number of employees may range from 100 to 500 depending on the particular product being provided
Services: Annual receipts may not exceed $2.5 to $21.5 million, depending on the particular service being provided
Retailing: Annual receipts may not exceed $5.0 to $21.0 million, depending on the particular product being provided
General and Heavy Construction: General construction annual receipts may not exceed $13.5 to $17 million, depending on the type of construction
Special Trade Construction: Annual receipts may not exceed $7 million; and
Agriculture: Annual receipts may not exceed $0.5 to $9.0 million, depending on the agricultural product
The SBA defines socially disadvantaged individuals as those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as members of a group. Social disadvantage must stem from circumstances beyond their control. In the absence of evidence to the contrary, individuals who are members of the following designated groups are presumed to be socially disadvantaged:
Black Americans
Hispanic Americans
Native Americans (American Indians, Eskimos, Aleuts, and Native Hawaiians)
Asian Pacific Americans (persons with origins from Japan, China, the Philippines, Vietnam, Korea, Samoa, Guam, U.S. Trust Territory of the Pacific Islands [Republic of Palau], Commonwealth of the Northern Mariana Islands, Laos, Cambodia [Kampuchea], Taiwan; Burma, Thailand, Malaysia, Indonesia, Singapore, Brunei, Republic of the Marshall Islands, Federated States of Micronesia, Macao, Hong Kong, Fiji, Tonga, Kiribati, Tuvalu, or Nauru; Subcontinent Asian Americans (persons with origins from India, Pakistan, Bangladesh, Sri Lanka, Bhutan, the Maldives Islands or Nepal), and ,members of other groups designated by the SBA.
The SBA defines economically disadvantaged as socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities. An economically disadvantaged individual’s net worth, after excluding the individual’s equity in the firm and the equity in the primary residence, may not exceed $250,000. SBA will also consider the individual’s average two-year income, fair market value of all assets, access to credit and capital, and the financial condition of the applicant firm in evaluating economic disadvantage.
In order to be eligible for the 8a certification the SBA requires that at least 51% of the applicant firm is directly and unconditionally owned by socially and economically disadvantaged individuals.
The SBA considers the business’ potential for success requirement based on the following:
the technical and managerial experience of the applicant firm’s managers
the firm’s operating history
ability of the firm to access credit and capital
the firm’s financial capacity
the firm’s record of performance
whether the applicant firm or individuals employed by the firm hold the requisite licenses if the firm is engaged in an industry requiring professional licensing
Also the small business must have been operational for at least two full years as evidenced by business income tax returns for each of the two previous tax years which show operating revenues in the primary industry in which the applicant firm is seeking 8a certification.
By having a better understanding of the 8a certification, its benefits, and requirements you should be able to determine if your small business would qualify for this extremely beneficial certification. If you don not qualify, there are still many options available for small disadvantaged businesses. Some of these include getting a MBE certification, DBE certification or getting certified as a women owned business. Regardless of which certification/s your small business qualifies for, any and each certification will prove to be a valuable asset for years to come.
Being 8(a) certified is a great resource for small businesses. Unfortunately many businesses have eligibility issues when their yearly review information makes them ineligible or they do not submit them at all.
In order to stay 8(a), certified small businesses must submit documents to be reviewed annually. The SBA is required to review each 8(a) firm’s program eligibility every year on the firm’s certification anniversary date. This office sends each participant a request for the required Annual Review documents and information shortly before the end of your program year which contains the date that your submission is due back to your Business Development Specialist (BDS). If it is not received by the due date, you will be sent a reminder and a second due date. If the information is not submitted by this second date, SBA’s rules & regulations require us to start program termination proceedings against your firm. The termination process may result in the loss of your 8(a) certification. Once it is lost you cannot be certified in the program again. Since annual reviews are done every year on your anniversary date, you should be prepared for it and comply on time.
Your year end financial statements must be signed, dated and their accuracy verified by an authorized officer, partner, or sole proprietor of the concern. 8(a) certified small businesses with annual receipts of less than $1 million may submit statements prepared in-house, in accordance with “generally accepted accounting procedures” or have a compilation statement prepared by a qualified CPA or independent public accountant. Those firms with sales of more than $1 million and less than $5 million must provide reviewed statements, prepared by a qualified CPA or independent public accountant. Statements are due within ninety (90) days after the close of the company fiscal year.
Those firms with total sales of $5 million and over are required to submit audited financial statements prepared by a CPA or independent public accountant. Those firms who will be submitting audited statements are allowed an additional 30 days due to the added complexity. The company’s sales figures on the Profit and Loss Statement must show the break-down of 8(a) and non-8(a) sales, if applicable. The submission of proper, year end financial statements, (Balance Sheet and Profit and Loss Statements) is mandatory as a condition of 8(a) certification program participation, as noted in your signed 8(a) Participation Agreement. Firms who are delinquent in submitting annual financial statements are ineligible to receive 8(a) contract awards. In addition program termination proceedings may be initiated if financial statements are not received in this office by the required due date. Most 8(a) small businesses have calendar fiscal year end date (December 31). While the financial statement due date might correspond with the time that your accountant is doing your business & personal tax returns, there is no provision for any extensions to the financial statement submission date. Make sure that your CPA is aware of this mandatory 8(a) compliance requirement.
Making sure that your small business submits your annual review each year and making sure that the information that you submit is accurate and in line with the SBA’s standards is extremely important to ensuring your small businesses ability to remain 8(a) certified.
If you are a small business owner that is interested in attaining the MBE certification here are some key points that you should consider before taking on this project. Minority Business Enterprise Certification is the process that a small business claiming to be a minority owned business must undergo to validate the company’s majority (51%) ownership by a minority or group of minorities. This minority individual or group of individuals must own, manage and be involved in the daily operations of the business enterprise. Very similar to the Woman Owned Business Enterprise Certification (WBE), the MBE exists on various levels. If you qualify for this certification, a great place to start your search is on the local level. Many cities and counties have an MBE program that would benefit your business with local government contracts. If your business is able to offer services on a state wide level you should look into your specific states program. Any state program would allow your business to participate in bidding and contracting on the federal level for your state. If federal and local government contracts is not what you are interested due to your service and product offerings your small business may benefit most from the national certification.
When considering the national MBE program it is most beneficial to certify with the National Minority Supplier Development Council (NMSDC). The NMSDC exists to provide a direct link between corporate America and minority-owned businesses. The NMSDC is one of America’s leading business membership organizations. It was chartered in 1972 to provide increased procurement and business opportunities for minority businesses of all sizes.
Certification is now more important than ever for small businesses. Major corporations include supplier diversity as a core business strategy, and use certification as a tool to validate and seek qualified minority businesses. Local and statewide government agencies are mandated to award different percentages of their contracting and bidding opportunities to minority owned businesses. It is crucial to understand that while the process for certification can take approximately 30 – 90 days the benefits certifications render far outweigh the time and effort invested.
If you are still considering whether you qualify for certification please feel free to reference this quick four step guide:
Ownership - A minimum of 51% ownership by one or more socially disadvantaged individual(s).
Minority Status – Certain groups are presumed to be socially disadvantaged (variations also exist on the state and federal levels):
African American
American Indian/Native American
Asian
Hispanic
Control – The minority applicant(s) must have experience relating to the specific products and/or services provided by the firm. It is also crucial that this applicant or group of applicants hold the authority to make day-to-day and long term business decisions for the firm.
Size – The applicant firm must meet the small business size standards established by the U.S. Small Business Administration (SBA). Size standards are measured by average annual gross receipts (ranging from $750,000 to $35,500,000 depending on industry) or average number of employees (ranging from 500 to 1,000 depending on industry).
If you need additional information about the NMSDC please visit their website by accessing the following link: http://www.nmsdc.org/nmsdc/
A Webinar about Getting Certified & Securing Opportunities as a Women or Minority Owned Business!
Are you a women or minority owned business that has not yet applied for a WBE or MBE certification? If so, you could be missing out on dozens of opportunities set aside solely for your small business!
There are numerous government agencies at the local, state or federal level that can provide you with a women or minority business certification. Whether you are just starting a business or your company is already established, you can drastically benefit from these MBE and WBE “set aside” contracts.
We invite you to spend a valuable hour with BizCentral USA, and learn the benefits and steps to becoming a WBE and/or MBE certified small business!
Topics of Interest:
•Eligibility for WBE and MBE Certification
•Getting Registered
•Supporting Documentation
Don’t wait any longer to get your small business certified. Take advantage of the certifications that are available today by attending our FREE webinar on Wednesday, June 2, 2010 from 3:00 p.m. – 4:00 p.m. (EST).
A Webinar about Securing Opportunities the Right way with SBA 8a!
If you have started a business and are now looking for business opportunities, getting your SBA 8a certification is the next step to success!
There is no better time than now to make the investment and seek SBA 8a certification. With all of the new federally funded project money that is flowing into states, certified SBA 8a small business are at the right place, at the right time.
We invite you to spend some invaluable time with BizCentral USA, and learn how to make the investment and seek SBA 8a certification.
Topics of Interest:
•Eligibility for SBA 8a
•Getting Registered
•Supporting Documentation
Don’t wait any longer to get your small business certified. Learn how to take advantage of the numerous certifications that are available for your small business by attending our FREE webinar on Monday, May 10, 2010 from 3:00 p.m. – 4:00 p.m. (EST).
Acquiring an 8(a) Certification can be extremely beneficial to your business. Federal acquisition policies encourage Federal agencies to award a certain percentage of their contracts to Small Disadvantaged Businesses Certified businesses.
In order to be eligible for an 8(a) certification:
You must be a small business based on size standards for small businesses in your industry
You must be U.S. citizen
You must be the majority owner of the business owning at least 51%
You must work full-time in your business
You must run the day-to-day operations of the business
Control of your board must be exercised only by disadvantaged persons. You must be a socially disadvantaged individual (Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias within American society because of their identities as members of groups and without regard to their individual qualities)
Socially Disadvantaged Groups (African Americans, Native Americans, Hispanic Americans, Asian Pacific Americans, and Subcontinent Asian Americans) Other individuals can be admitted to the program if they show through evidence that they are disadvantaged because of race, ethnicity, gender, physical handicap, or residence in an environment isolated from the mainstream of American society
Ultimate control of your company must be the responsibility of the disadvantaged individual
You must be an economically disadvantaged individual (For the 8(a) program this means all applicant individuals must have a net worth of $250,000 or less, excluding the value of the business and personal residence)
You must be in business for at least two years or apply for a waiver of the two-year requirement
You must not have any significant unresolved federal or state tax financial issues
You must be of good moral character
You must not operate a business that is not eligible for certification (Broker or Non-Profit)
Many different small business certifications exist. Depending on where your business is located there are county, city, and state certification programs that exist in order to disburse and diversify government contracts. Each program has qualifying factors or industry specific requirements that your business will have to meet.
If you are transportation, construction, or an alternate construction support company, your business would most benefit from a Disadvantaged Business Enterprise certification. The Disadvantaged Business Enterprise certification (also known as DBE) is normally run through your state’s Department of Transportation. The DBE is more industry specific and helps to certify small businesses.
In order to qualify, the majority of businesses owner(s) must have a personal net worth of less than $750,000. Many business owners see this requirement and decide not to move forward in the process. The majority owners are the qualify factors and their net worth is calculated separately from all business accounts and assets. The owner’s personal residence is not calculated as an asset but it must be disclosed as your residence. Once the business owner decides to move forward with the process, they apply and provide all supporting documentation for the certification.
Due to the recent influx of applications for these programs, each office has an average processing time of about 90 days. This process cannot be expedited and each application is processed in order of submission and complexity. The key to experiencing a very smooth and seamless certification process is to ensure that all paperwork is accurate and complete. Incomplete applications are returned with a request for additional information. For more information on the specific office to reference for your state, please follow the link provided below.
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rest of the small businesses in the United States accounted for more that ½ of the private sector GDP and 70% of new jobs created in 2011.
