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Small business expert Chris Brogan on telling compelling stories for your small business and why storytelling is a vital component of your strategy.

Here are twenty-one small business marketing secrets for absolutely any budget that will elevate your business above the competition.

A third of new businesses will close by their second year, according to the U.S. Small Business Administration. Running a business that beats the odds starts with ingenuity, grit, and guts.  So, what does it take to build a business that can withstand decades of economic upheaval in between the boons and successes to remain resilient? We thought this was an interesting question, so we did some research, examining businesses that have been on file with Experian for decades to see what traits they share. For G&G Electric Supply in New York City, four generations of perseverance and the ability to pivot are in their company’s DNA, beginning with founders Gabriel and George.  The Zildjian Company has roots dating back to 1623 Turkey, and then as immigrants landing on Ellis Island in 1929 on the eve of the Great Depression. As we’ve all experienced through this historic period of national economic uncertainty, changes can occur in business that force us to adapt and adjust quickly.  Market conditions shift, and even the best plans and roadmaps are forced to contend with entirely different circumstances. For small business owners, these conditions can be scary, and the volatile situation is a reminder that past profits and recent confidence are no guarantee for future success. There are companies today that are still standing, despite the shaky conditions that were brought upon by roller-coaster economics and dramatic world events. Inspired by reviewing the profiles for this article, we present some of the most interesting, resilient businesses and the attributes we think set them apart from others. Perseverance G&G Electric Supply Company, Inc. Founded: 1914, New York, NY Industry: Electrical equipment, wiring, installation In the early 20th Century, partners Gabriel and George thrived due to the swift modernization of homes and businesses. Everyone wanted electricity in their house, apartment, shop, or office. Weathering the storm of the Great Depression, they landed contracts for the now-iconic Empire State Building and Radio City Music Hall. The war years, personal losses, and shortages that followed offered their own challenges, but the company adjusted and added more clients by diversifying into software development. When one arm of the business was soft, they buffed up another to remain profitable, never giving up. Now in its fourth generation of family partners, G&G Electric Supply Company is still the major electrical distributor in Manhattan, with increased technical acumen and a robust offering of products and services. Specialization Dlubak Specialty Glass Corp. Founded: 1900, Blairsville, PA Industry: Weather-proof glass, security glass, decorative glass As manufacturers of glass, Dlubak Specialty Glass products cover a wide variety of needs, including aesthetics, privacy, safety, and more. At the core, they make one thing: glass. But their customers vary from commercial properties and government offices to prisons and military protection. Their expertise is built on specific knowledge to ensure that they provide the correct glass for their clients’ important needs. At a company whose projects have included the safety glass atop the Observation Deck of 30 Rockefeller Center in New York, to gunner protection for the U.S. Army, to bullet-proof glass for foreign embassies worldwide, one of Dlubak’s secrets to success is that they are renowned experts in their knowledge and true specialists at their craft. Reputation The Zildjian Company Established: 1623, Samatya, Turkey. In the USA: 1929, Quincy, MA Industry: Music cymbals, drumsticks, percussion mallets The story of Zildjian begins with its founder practicing alchemy in Constantinople, attempting to turn other metals into gold. Though that effort didn’t work, he discovered a metal compound that he crafted into a perfect cymbal. After centuries of success in their native Turkey, the family moved the business permanently to the USA in the 20th century, and their customers followed the music, so to speak. Music industry professionals from house bands and studio musicians, to world-famous celebrities, continue to seek out the Zildjian brand as the standard in the industry, at least partly because, after almost 400 years, they have earned something no one can put a price on — customer trust. Consistency The Russian Tea Room Established: 1927, New York, NY Industry: Fine dining, in-house catering, private events There’s an expression, “Good taste never goes out of style.” With its upscale interior design, A-list clientele, and adherence to customs like High Tea, The Russian Tea Room restaurant has remained popular due to its standards of excellence and its elegant old-world décor. Founded by members of the Russian Imperial Ballet, it has always been associated with the beauty and grace of high art. Rather than bending to trends and fads, it is steeped in the century-old European tradition. For a business dinner, elegant couples’ night out, or wedding reception, this reservations-only dining establishment has maintained its place in Manhattan society through impeccable quality and classic décor. By continuing to offer an unparalleled experience through its food menu and stocked bar, it remains an institution of luxury and glamour. Adaptability Booz Allen Hamilton Established: 1914, McLean, VA Industry: Commercial business consulting, cybersecurity and technology, defense and intelligence consulting Edwin G. Booz Surveys, as the company was originally known, started as a business that observed other businesses and then offered advice on how to make improvements. Mr. Booz used his background in psychology to focus on the people in business, rather than the products. He effectively invented modern management consulting as an operational business. Focusing on the people is still a major guiding principle of the company a century later. On the USA’s entry into World War II, they helped prepare the US Navy and expanded from commercial consulting into government consulting. Their chameleon-like ability to shift and change enabled Booz Allen Hamilton to continue to grow and increase their specialties including technology, cybersecurity, and more. One might argue that Mr. Booz’s own original psychology studies might have encouraged his company’s ability to always evolve to the needs of the market in order to discover new areas of opportunity. Resilience: in conclusion These brief profiles give a sense of some of the traits exhibited by these successful businesses over time, the ability to adapt and pivot, or provide exceptional customer experiences consistently, or respond to customer demand by offering highly specialized products and services. Above all,  be strong enough to endure times of economic uncertainty to emerge strong and resilient. We hope you find them as inspiring as we did.

Some people might consider starting a business easy; the hard part is keeping the company open and profitable beyond the first two years. The odds of success are tough; a third of new businesses will close by the end of their second year. And 70% of these companies fade by year 10. According to the U.S. Census, 2020 business starts soared 27 percent to 4.4 million. COVID-19 closures and related layoffs were a likely catalyst. How many of these new businesses will succeed beyond their second year? It takes hard work, guts, and determination to grow a successful business, especially one that remains open for decades.The Small Business Administration studied business failure. In this post, we summarize ten leading reasons. Use them to keep your business on track. #10: Over-investment in fixed assets Up-front expenses are common for any business. However, over-investing early on can spell disaster. Evaluate the necessity of owning these assets. Perhaps you can lease or buy used equipment rather than buy new when you are just getting started. Avoid this problem by limiting start-up expenses, and maximize cash flow. #9: Personal use of business funds Some business owners will use their business to cover personal expenses, a big risk, and a potential accounting hazard. Many small business owners will use personal credit to bootstrap their operations. To bypass this mistake, keep your funding sources separate. To avoid legal liability, set up your business as an LLC, corporation, or partnership. #8: Poor inventory management For a young business, good inventory management is crucial. Tying up working capital in inventory can be risky. So, putting in place good inventory controls early on is just smart. Make conservative, experience-based projections of supply needs. Rather than draining capital and eroding profits, a business can set up a line of credit but must exercise proper control and accountability. #7: Unexpected growth As a business starts to flourish, it's tempting to invest everything back into it in order to grow. For the long-term, it's better to limit spending, especially on more significant expenses. Spending too much, too quickly exposes the business to increased risk, which can endanger working capital. #6: Unable to keep pace with competitors The free-market economy encourages competition. Competition can be good for consumers, but a new business must work hard to distinguish itself against larger, established competitors. Study them and look for areas of opportunity – the path to longevity is taking care of your customers. Find ways to deliver good value and good service. This will build good word of mouth and help set you apart. Business reviews are a great place to start building. #5: Location and visibility Visibility is a key component of success, so try to find a physical location close to where targeted customers work or live. Consider accessibility, parking, and the condition of the building. A business’s online presence is just as important – for both digital and brick and mortar businesses. Customers can’t buy from someone they can’t find, so a professional-looking website with pages designed to get found by search engines is a must. A strong presence on social media is equally important. #4: Lack of experience Good business leadership means having the experience to make the right decisions and anticipate the challenges in the initial stages of growth and beyond. Aside from the expected steps to build a business, leaders must adapt to handle the pressure and avoid costly mistakes. Before opening your business, know your products and services and research customer needs and the general market. #3: Poor credit arrangements A business must make customer payment and credit terms accessible, but it can hurt cash flow if your financing options are too flexible. Mobile payments such as Square, PayPal, Venmo, and Zelle may help provide easy payment solutions. Establishing clear credit terms for large accounts is best. Just as you assess the creditworthiness of your customers, your business is also being assessed by potential vendors. To be seen as good credit risk, keep tabs on your own business credit score. #2: Low sales Maintaining consistent sales levels is a significant success factor for any growing business. Low sales can result from keeping an underperforming sales force, having inferior products and services – or overpricing them, lacking a solid understanding of buying trends, or misreading the competition. Business owners need to be ready to make course corrections to increase sales and revenue. #1: Insufficient capital Having money on hand is an obvious necessity to run a business. Investors, government grants, and business loans are common ways to raise capital. Online lenders have stepped in to fill the gap left by major banks following the Great Recession. Getting a loan may not be difficult, but a new business lacking credit history may face less favorable terms. Even if showing a profit, small businesses must focus on maintaining positive cash flow and paying bills on time to build strong credit. Don’t allow poor credit to limit your potential When it comes to managing your business credit, think of Experian. Whether you need to monitor your own business credit report or evaluate others, Experian® SmartBusinessReportsSM has the ideal small-business reporting service for you. Experian’s business credit reports and subscriptions are the best value for the money, giving you the choice to monitor your business credit reputation or instantly evaluate business backgrounds and credit scores on your suppliers and customers.

In celebration of International Women's Day (March 8th, 2020), Experian spoke with Stephanie Eidelman, CEO of the IA Institute, a media company that produces news, events, education for the credit and collections industry. She is an influencer in the world of consumer debt and a strong advocate for Women in business. Her company hosts the Women in Consumer and Commercial Finance Conference. Gary: So if you could tell me a little bit about when you were starting out in your career, did you set out to become a CEO and business owner or was that the trajectory that you thought that you would take?  Stephanie: My trajectory is nothing like I expected originally, I started my career in the theater. I was originally a theater major at school and that goes back to fifth grade when I started doing props in elementary school and I loved it and I really thought that what I would be was a stage manager and I wanted to ultimately be a Broadway producer.  Gary: So, you said recently that you are “calling women up versus calling men out?” What did you mean by that?  Stephanie: Yeah, well, you know, I think in a lot of areas it's not, it can be fun and sort of cathartic to have a, a sort of a gripe session, you know, or a, oh, woe is us or, or to talk about things that are our problems. But, you know, as it relates to men and women take to get a whole bunch of women together and call men out or complain. Again, it, it may be satisfying to some degree, but it's not useful and it's not going to move people forward. And so, the calling women up is really more about focusing on how we can get from here to there, what are the positive steps that we can take?  What are the ways that we can influence our own behavior? and not necessarily depend on men to allow us or, or do it for us or with us but just focusing on the more positive aspect.  Gary: I'd say in the last few years, women in business, and women really taking their place in business, I know at Experian, we really champion women business leaders. We've got employee resource groups allocated to women, but the men are invited to those meetings too, and we get something out of it as well. I think it's a partnership really. Would you agree with that?  Stephanie: Absolutely. I mean, I think it's, you know, it doesn't really matter. Again, you know, anybody who is passionate about developing women or developing anybody, you know, ought to be involved in that. Plenty of men have daughters or wives or sisters or whatever and would like to see them succeed, just as, you know, just as much as their sons or brothers or, or whatever. So, I absolutely believe that we do, one thing you might be alluding to is, we started a Women's Conference last year and, it's, it's not for men and maybe it will become for men at some point. And we've certainly had men ask about it, but you know, there is an element to creating a space that women do feel safe and the ability, the ability to, to share things that maybe they wouldn't share in front of men. And so, it's not so much about leaving them out as creating a space where women do feel comfortable to take that first step. And I can see that different conversations happen, and we have other conferences that have men too, and they're also great. but, but the character of the conversation is different.  Gary: So if you overheard a conversation on the train about with a woman considering starting her own company and going into business for herself today in 2020, do you have any advice for her on what would set her off on a good footing?  Stephanie: Gosh, you know, I would suggest it for anybody, woman or, man, it's interesting. I am a woman business owner and I don't know that I would tell you a story of how I've not had opportunities, if I've been slighted as a woman, maybe it's happened and I haven't noticed it, or maybe my threshold for it is different than others. But I would certainly, for anyone looking to start a business, I would give the advice that it's not easy. You have to be prepared for the fact that nobody's going to care about it as much as you do, you know? Cause you're the owner and the buck stops with you, however, we can't do it alone. All right. So, there's a real balance there. And I would just say go for it woman or man, I think if you have a passion for something and you're willing to work hard at it, then you should do it. And what I find is it's amazing how easily you can become an authority in something these days by just putting effort into it. That alone surpasses often 90% of the competition.  Gary: Yes. In the data that we've studied on women business owners, there seems to be a reliance on personal credit. That's one of the trends that we've seen the last few times that we've done the study and a reluctance to shop for credit. You work in credit and collections in your industry, why do you think that is? Is it a confidence issue or maybe an education issue in terms of knowing what credit products are out there for business owners?  Stephanie: Well, I bet it is an education issue, and matching the right type of credit, to what you need. It may also be an overestimation of what you need, how much is needed. People may think they need millions of dollars to start a business and you know, that may be true in certain types of businesses, but probably not in most, and for that matter, bootstrapping it is probably a great way to go. When you're not beholden to somebody else you really have more ability to do what's right for the business and not just what that creditor is demanding. So, I guess it might be. I will say in full disclosure, I didn't really have to do a lot of shopping for credit because we have been able to fund the business through the cash, through operations of the business. So, I haven't had to raise money.  Gary: I'd heard this a of your company, and that's admirable. The thing that we are noticing when we study the credit profiles of women business owners and men business owners, there are different industries obviously, where you have a lot more groupings of businesses for women versus men. But generally, the credit profiles are quite comparable. So, it's interesting that when you look at the breadth of credit and the types of credit, trade lines women business owners are accessing versus men that they're not tapping trade-credit earlier in the life of the business. Setting up terms with leasing for office equipment or getting terms from distributors, whether it's office supplies, you know, these are some of the things opening a business credit card versus using personal credit. These are some of the things that we were hoping can change over time. But generally, we see women are a good credit risk and they're starting businesses in record numbers.  Stephanie: You know, it's a great point as I think about my not only credit for the need to raise money but credit for the need to get more credit basically to open accounts. My business really was a spinoff of a business that my parents started in the late 1980s. And so before I spun it out and needed to get my own lease and my own phone bill and all those things, I realized, yeah, the business had been established for quite a while, but not by me. And the credit that I was surprised to find how thin the credit file was for my business because a lot of those accounts had been established under the prior parent company. And so, it did take a few years to get that going. But it wasn't really an impediment. I was able to do everything I needed it to do. I probably just needed to personally guarantee or, you know, put my personal information a little more than I would have thought originally, but it never really held me back.  Gary: So, is this a good year for your company? The economy seems stable. We had some worries of a recession there earlier in the year, but that seems to have kind of leveled out. Are you feeling confident about 2020 and moving into the next year or, or are you seeing uncertainty with things like trade and, those things impacting business?  Stephanie: Well, for my business, it’s what affects it most is the environment for my clients, which includes regulatory uncertainty. That's, you know, in the last few years has been a little bit more favorable for our industry. Going forward, there's certainly going to be uncertainty about what's going to be in the coming years. And yeah, I would say that I'm optimistic about the coming year and next year as well. And in part it's really because we've done a lot of work on focusing on differentiating ourselves and just kind of staying in our lane or creating our lane and then staying in it. I think personally, this isn't exactly the question you just asked, but personally, what I've learned a lot as a business owner - it's so easy to become obsessed with what everyone else is doing. You know? The competitors, you certainly need to be aware of the competitive environment, but to focus too much on that and what you can't control is really a large distraction. And focusing on what you do best and what you can do and doing it the best that you can, is going to make you more successful than trying to be on top of everything for everybody you compete with, you know, everyone else in the space. And so that, that's been a, what's most important for us and what exactly the macro economic factors are, don't have to be noise that's as impactful, especially for a smaller business.  Gary: Excellent advice. So, Stephanie, if our women viewers of this content would like to find out more about your institution and you mentioned your conference how would they go about doing that?  Stephanie: So our website is www.theiainstitute.com and there you can find all the different things that we do, including our Women in Consumer and Commercial Finance Conference, but our other initiatives as well are all summarized there.  Gary: Well, thank you very much for taking time out to speak with us today, Stephanie.  Stephanie: Thanks, Gary. I really appreciate it.  

This week's guest post is by small business tax expert and best selling author, Barbara Weltman of Big Ideas for Small Business. Barbara shares ideas on how small businesses can remain competitive with health care benefits to attract employees in a tight labor market.   With the cost of healthcare premiums rising, and a tight labor market, small businesses are looking at all options to attract employees, and benefits are one way to remain competitive. So, in this post I thought it would be timely to share some ways employers can deal with offering health coverage without breaking the bank. As P.T Barnham famously said “The foundation of success in life is good health,” so let’s start with a quick dose of reality then get down to the business of assessing your options for 2020 . It’s estimated that premiums for large employers in 2020 will be on average 5% higher than 2019 (statistics on premiums for small employers are not available).  Small business owners are tasked with the challenge of offering health coverage to their staff that is within their budget. Fortunately, there are several ways for employers to deal with health coverage, and the tax law provides breaks to help defray the cost. Here is a summary of health coverage options and a brief discussion of the tax breaks that result. Employer mandate Despite repeal of the individual mandate, the employer mandate requiring certain employers to “play or pay” continues to apply. If you have at least 50 full-time and full-time equivalent employees, you are an applicable large employer (ALE) and must offer minimum essential health coverage that’s affordable (meaning the employee share of premiums doesn’t exceed a set percentage of their household income) or pay a penalty. In deciding whether to play or pay, keep in mind that the penalty amounts (there are different penalties) are increasing for 2020. And if you play, there are cost management initiatives—shopping around, increasing deductibles, using virtual care—to help keep premium costs down. Small employer options Even if you aren’t an ALE, small companies want to offer their employees health coverage. They want their workers to be healthy. And in today’s tight job market, health coverage is an important benefit, with the majority of employees saying that their coverage is a key factor in deciding whether to stay with the company. Here are some affordable options to consider: Health savings accounts (HSAs). If you offer employees a high-deductible health plan (HDHP), which is a low premium policy that requires employees to pay out of pocket up to their policy’s deductible before coverage kicks in. The HDHP is then combined with an IRA-like savings plan called a Health Savings Account (HSA). You can decide whether to contribute to an employee’s HSA or let the employee do so. If you make the contributions, they are tax deductible and as a tax-free fringe benefit are not subject to payroll taxes. Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs). Instead of having the company obtain a group plan, a small employer (one that is not an ALE) can reimburse employees up to a set dollar amount for their individually obtained health coverage. Reimbursement limits for 2020 have not yet been announced. For 2019, they were $5,150 for self-only coverage and $10,300 for family coverage. Individual Coverage Health Reimbursement Arrangements (ICHRAs). Starting in 2020, employers of any size can reimburse employees for their personal health coverage premiums. The employer—not the government—sets the reimbursement limit. The ICHRA must be offered on a nondiscriminatory basis. And the arrangement must meet other requirements, including notice of the plan and verification of coverage by employees in order to receive reimbursement. Sounds similar to the QSEHRA, but there are some important differences. Excepted Benefit Health Reimbursement Arrangements (EBHRAs). Also starting in 2020, employers that want to offer certain extra coverage up to $1,800 to help employees pay for non-covered expenses (e.g., vision or dental care) can do so with an EBHRA. This is a supplement to and not a substitute for group health coverage. Association Health Plans (AHPs) In 2018, the U.S. Department of Labor issued a final rule permitting chambers of commerce, trade associations, and other groups to band together to offer their members affordable group health coverage. The groups, referred to as Association Health Plans (AHPs), would be treated as a single large employer and, due to economies of scale, would be able to command favorable premiums. Tax incentives Premiums paid by employers are fully tax deductible. What’s more, employer-provided health coverage is a tax-free fringe benefit exempt from payroll taxes, but employers must report it on employee W2’s. Instead of a deduction, small employers that purchase coverage through a government Small Business Health Options Program (SHOP) (or through an insurer where there is no SHOP) may be eligible for a 50% tax credit for the premiums they pay for their staff. Details of this tax credit are in the instructions to Form 8941. Final thought Because of the wide array of options for obtaining health coverage, small business owners have a lot to think about. But they must do so soon so they can select their option and shop around now to have coverage in place by January 1, 2020. About Barbara Weltman Called the “guru of small business taxes” by the Wall Street Journal, Barbara Weltman is a prolific author with such titles as J.K. Lasser’s Small Business Taxes and J.K. Lasser’s Guide to Self-Employment and a trusted advocate for small businesses and entrepreneurs. She has appeared on numerous radio shows and television programs, including Fox News, CNN, and The Today Show. She has been named one of the 100 Small Business Influencers in the U.S. five years in a row.  Learn more by visiting Big Ideas for Small Business.

Paying an invoice without carefully reviewing the company and invoice can cost your business more than just the amount paid. Invoicing fraud is when a third party sends a false invoice to an organization or business. In some cases, the invoice is for services or products that were never purchased or delivered. Other times, fraudsters send a bill with inflated pricing or a duplicate bill. Paying just a single fraudulent invoice can set your company up for being a victim of larger fraud down the line. Often, criminals send a small invoice for a common product, such as office supplies, to test the company’s process to see if they will pay the false invoice. If the business pays the invoice, the criminals know that the company does not carefully review and research the invoices they receive. Criminals then send additional invoices to the company to continue the fraud. Julie Johnson, Research Specialist at Association of Certified Fraud Examiners (ACFE) says that invoicing fraud appears to be on the rise. “The rise in technology offers fraudsters new and creative ways to commit invoice fraud as well as more options to hide their tracks,” says Johnson. According to a Lloyds Bank survey, 52 percent of respondents have experienced invoiced fraud, with law firms, HR companies, and IT businesses being most at risk. The survey also found that only 20 percent of the companies reviewed their invoices, and 37 percent do not have a process to prevent invoice fraud. Johnson says that in her experience, small businesses are most at risk for becoming victims to invoice fraud. “SMBs are often targeted because they typically don’t have the same set of resources as larger companies. They also may not have a procurement process to determine figures and track invoices,” says Johnson. Red flags to help spot invoice fraud before you pay While fraudulent invoices often look similar in format, and even in name, to legitimate invoices, many fraudulent invoices contain warning signs. When processing invoices, keep an eye out for the following red flags: Business directory invoices – Many fraudsters send a fake invoice to a company or individual employee about a business directory renewal. Johnson said that criminals with this particular scam often become aggressive and contact the company demanding to be paid. Web domain renewals – Johnson says that another common fraud is invoicing for web domain renewals. These invoices typically come from a different company than the one that sent previous renewal notices but may have an official or similar sounding name. More frequent bills – Be aware of how often bills arrive for specific products and services. Johnson has found that fraudsters will send a bill for a product more often than the legitimate company. For example, if you pay your printer rental fee once a month, but receive two bills in March, then you should contact the company before paying. No purchase order – Real invoices almost always contain the corresponding purchase order. However, many fraudulent invoices do not include a purchase number. Preventing invoice fraud Because it is challenging to catch fraudsters and recover money paid, the best strategy is to incorporate safeguards into your invoice payment process. Here are four things you can do to prevent becoming a victim of invoice fraud: Verify the company name on each invoice — Fraudsters often use company names similar to those of reputable companies. If you are not familiar with the company, do a Google search. Johnson says that if there is no internet information on a company, that’s a good indicator that something is not right. Compare the receipt of goods and purchase order with the invoice — Since fraudsters send invoices for goods you never received, you will not have a receipt of goods for fraudulent invoices. Check the payable address for each invoice — Another scheme is for a fraudster to send a bill with the name of a company you do business with but use a different payable address. Instead of sending your payment to the legitimate company, you pay the fraudster. Even worse than the fact that you lost money, you likely still owe your legitimate vendor. Use Experian BizID for Verification — Experian customers can do a business verification using the BizID to verify the address and phone number matches what is on file with Experian. Performing verification using BizID can also check if the address is potentially vacant or if it is a residential address; both should be considered red flags. You can also do reverse-looks up using the address and phone to see if there are multiple businesses at both data points is another check to consider. If you determine that you have received a fraudulent invoice, Johnson says to remember that you are not legally obligated to pay for goods or services that you did not order. “If you receive harassing calls from companies about fraudulent invoices, they have no legal action against you,” says Johnson. “After verifying that it’s not a legitimate invoice, do not pay the invoice.” By taking steps to catch and prevent invoice fraud, your company can reduce its chances of becoming a victim.

In this guest post, tax expert and author Barbara Weltman offers some tax saving tips for business owners as we head into tax season. You can find more posts by Barbara on her blog Big Ideas for Small Business. Tax season is upon us and business owners want to minimize their tax bill for 2018 to the extent allowed by law. Fortunately, there is considerable flexibility on tax returns to cut taxes and be positioned for 2019. Here are some business-related strategies to consider. Take advantage of new tax laws Your 2018 return will reflect changes made by the Tax Cuts and Jobs Act of 2017. The new rules applicable to you depend on your type of business entity: C corporations. The most dramatic change here is the cut in the corporate tax rate to 21%. Pass-through entities. For owners in partnerships, limited liability companies, S corporations, and sole proprietors, the most dramatic change here is the introduction of a new tax deduction called the qualified business income (QBI) deduction. This personal write-off effectively reduces taxable profits by 20% for those eligible to fully utilize it; many limitations apply. All businesses. Regardless of how the business is organized, write-offs for buying certain property have been enhanced, enabling all of the cost to be deducted up front. This is so even if the purchases are financed in whole or in part. And if you’ve continued paying wages to employees on family or medical leave and meet certain requirements, you may be eligible for a new tax credit. Make smart tax elections Size up where you stand in terms of profitability for 2018. As a generalization, if 2018 was a good year, you want to maximize your deductions; if it was not a good year, you probably want to save deductions where possible to use them as offsets when profitability returns. For example, if you’re in the black in 2018 and have placed newly acquired equipment in service in 2018, then use tax breaks—Section 179 deduction and bonus depreciation—to write off all of the cost on your 2018 return. Conversely, if you’re in the red, don’t elect the Section 179 deduction and opt out of bonus depreciation so you use regular depreciation to spread deductions over the recovery period of the property; hopefully, you’ll be profitable then and benefit more from these deductions. Discuss with your CPA or another tax advisor any accounting method changes to be made for 2018 in light of new rules under the Tax Cuts and Jobs Act. Making such changes can impact when deductions are taken and income is reported. Make last-minute retirement plan contributions If you have a qualified retirement plan in place (i.e., it’s been operating for years or you at least signed the paperwork for a 2018 plan by December 31, 2018), you can complete contributions to the plan up to the extended due date of your return. For example, if you are a sole proprietor with a solo 401(k) plan (you don’t have employees), your contribution for 2018 can be made up to the extended due date of your 2018 return (October 15, 2019) if you have a filing extension. If you don’t have a qualified retirement plan in place, it’s not too late to set up and fund a SEP. This type of plan, which can be used by any type of entity, requires you to include eligible employees and make contributions on their behalf up to the extended due date of your return. Figure your estimated taxes for 2019 The due date of your personal income tax return—April 15, 2019 (April 17th if you live Maine or Massachusetts)—is also the date for paying the first installment of estimated tax for 2019. If you file your 2018 return by this date, you can use the 2018 tax liability to gauge your 2019 estimated tax payments. As long as your 2019 estimated taxes are at least 100% of your 2018 liability (110% if your adjusted gross income in 2018 exceeds $150,000, or $75,000 if married filing separately), then you won’t owe any estimated tax penalties even if this estimate falls short of what you’ll actually owe on your 2019 return. In making your 2019 estimated, factor in: A higher Social Security wage base ($132,900 in 2019), which is part of self-employment tax. Cost of living adjustments to various tax breaks (e.g., retirement plan contribution limits, Section 179 deduction limitation). Conclusion Now that the dust has settled on the Tax Cuts and Jobs Act, some businesses may want to consider changing their form of entity (e.g., revoking an S election to become a C corporation). Keep in mind that such action has more than mere tax effect and shouldn’t be undertaken without considering not only all the federal and state taxes but also non-tax considerations.  

In this guest post, Experian invited Alan W. Silberberg, Founder and CEO of Digijaks, a boutique Cybersecurity company, to share his views on how small businesses are vulnerable to cyber attacks, and some best practices every small business should adopt to protect their businesses.   In 2017 61% of small businesses in the United States suffered some kind of cyber attack according to a report by Ponemon Institute. This number reflects an over 50% increase year to year in cybersecurity assaults on U.S. small businesses. There are many reasons why small businesses need cybersecurity — privacy,  client trust, financial integrity, employee integrity, data integrity and the longevity of the business. For a small business owner, the topic of cybersecurity can seem overwhelmingly complex, but a basic understanding of cybersecurity is considered table stakes for running a business in 2018, particularly a business with any kind of online presence. But even those companies without an online presence can be quite vulnerable to cybersecurity threats. Threats include attacks launched through email, SMS and voice phishing,  even insider threat attacks, or in person cybersecurity attacks. Small businesses are also very likely to suffer a reputational attack, where someone starts posting negative information in social media, websites, blog posts to harm your brand and or reputation. There are many kinds of cybersecurity tools and protocols available to the small businesses, and it would be impossible to boil the topic down in a single blog post.  Rather, I’d like to outline some common sense protections to have in place for your business and illuminate some tactics hackers are employing when going after an unsuspecting business. Two-Factor Authentication Two Factor Authentication and or multi-factor authentication are needed for every sign in, every banking account, every insurance account, and if possible should be defacto, Two-factor authentication can be commonly known as using a secondary password or 4 digit code to authenticate login after your username and password are entered. While many consumers know two-factor authentication as something like SMS messaging post-login, many banks, and government players are moving into multi-factor authentication or relying on non-sms delivery. Firewalls There are multiple types of firewalls, including solutions specifically for mobile devices. Generally speaking, a firewall serves as the first or sometimes the second point of response for all incoming traffic including normal and business-related data/voice data. A firewall will defend a network, a device, or both against multiple kinds of cyber attacks. This could include things like malicious code insertion, denial of service, data stuffing, viruses and potentially malicious payloads in documents. Usually, a firewall will work best when configured onto a specific network or device to the needs of that specific instance. Not using a firewall is a novice mistake since they do capture and stop a large number of certain kinds of attacks. This being said, however, a smart attacker, using social engineering and or network monitoring, even network penetration can create malicious code designed to bypass firewalls. This is why layered cybersecurity approaches to even the smallest business can reap long-term rewards. The kinds of threats facing a small manufacturer versus a small FinTech company;  are simultaneously different and the same. Each industry has specific devices, use cases, and technology that need securing in different ways. However, all small businesses need to use common sense and some basics;  like strong password rules, firewalls, https websites, two-factor authentication, encryption for both data storage and transmissions like email or website. Common cyber hacks used on Small Business Social engineering attacks, for example, account for over 50% of all cybersecurity intrusions in one form or another. This includes social media, search results, email phishing, voice phishing, SMS phishing, and link bait.   Then there is reverse social engineering, where someone learns enough about your business to be able to convince you they are the ones to solve your problems when they are really behind the hack in the first place. Social engineering attacks can occur in multiple instances. One kind might be directed at the CEO or CFO like in the “CFO Scam” otherwise known as the Business Email Compromise scam. Others can be directed at corporate websites, using fake comments, fake vendors and fake customers to deluge a small business with negative comments and create a bad vibe. Other social engineering attacks can occur through social media; with LinkedIn and Facebook especially often used to mine information about who is who, and what they do inside organizations. This can be used in good ways obviously, but also to inform attackers about potential vectors in. Social engineering can take the form of someone contacting your customer service representatives, with just enough information about a certain account, to request password changes. Or address changes. While this may be directed at a specific user or client, it affects your company directly and can result in litigation or loss of business or both. Reputation security of your brand, your key employees, and even the owner of a small business is just as important as cyber security and all business need to pay attention to external attacks that may start as, or be through search or social media. A small business might have up to date cyber security controls and protocols, but may still be open to reputation attacks. Set up Google alerts in your brand name, key employees names and your own. Monitor for any changes in search results which are often tied directly to reputation attacks.  Create a social media plan that encourages employees to not share any work-related information, and trains people how to ascertain fake accounts versus real ones. It should not take a cyber horror story to get your company investing the time, money and training to protect your business., Protecting the security of the business is viewed as a positive thing to share with investors, due diligence teams from prospective partners, and or even with your clients. All of us want to do business with safe companies, or those perceived to be that way. In fact, there is a huge incentive. Recent studies show that on average 20-25% of US companies that suffer a data breach permanently lose clients.  This number can increase dramatically if the breach is with a financial company, health care company or insurance company. So do not wait.  Educate yourself, your colleagues and your employees. Learn what kind of cybersecurity you need and how it would be implemented across your business. Do not assume you won’t be attacked. Do not assume your own business is too small or not worth a hacker’s time.  Take the necessary steps beginning with education. Then begin to form an action plan and next steps.  Want to learn more? Resources for Cybersecurity information Here are some additional resources to consider when researching cybersecurity options for your business: U.S. Small Business Administration “Cybersecurity for Small Business” training program List of large and growing Cybersecurity companies U.S. CERT Cybersecurity Resources for Small Business U.S. Homeland Security Cybersecurity Resources for Small Business Top Small Business