President Barack Obama has been very vocal about the significance of small businesses to our economy. According to the White House website, www.Whitehouse.gov, the President views small businesses as "the backbone of our economy and the cornerstones of our communities".
Unlike their Fortune 500 business counterparts, whose heavily entrenched internal culture makes swift change difficult, small businesses are agile, more flexible and can adapt more readily when the economy requires or the business model no longer works. So it comes as no surprise that we as a community put forth every effort to support and grow our small businesses.
Frequently forced to wear many hats, small business owners often juggle legal, accounting, marketing, operations, hiring, firing, manufacturing and distribution duties. Some do it all of this while maintaining a full time job and family. The idea is to grow the business enough so that the entrepreneur can leave the job and focus on the business.
Today's employers are not looking for people who want to work to make a living, they are looking for people who, more importantly, want to make a life.
Consider our parents and our grandparents and how they were able to do so much with so little for so long. They knew the difference between making a living and making a life. While it may seem like purely a matter of semantics, believe me, it's more than just a play on words.
Knowing which you are focused on can make the difference.
In an unconventional move, legislation designed to reshape the nation's $10 trillion housing finance market was released last Sunday (March 16th). Since then, reactions to proposed broad changes have ranged from strong support to 'wait-and-see, and outright opposition.
According to the bill's authors, Sen. Tim Johnson, chair of Senate Banking Committee and Sen. Mike Crapo, the committee's ranking member, the rare weekend release was the result of months of effort to accommodate varied input to secure bipartisan support and move the proposal forward – in time for a full Senate vote by November.
In a news release, Chairman Johnson said, "This proposal includes an explicit guarantee in order to add stability to the economy, keep costs reasonable for borrowers and renters, and ensure fair access to the secondary market for all lenders."
Entrepreneurship requires dedication, commitment, organization, creativity and resourcefulness. Most mothers just happen to possess all of these qualities, which are transferable to business.
Mothers may not run the majority of Fortune 500 companies, however, they do run many small businesses, with excellent startups a part of the mix. And with mothers having to make difficult decisions all day every day, it comes as no surprise that they can easily call the shots in business when presented with the opportunity.
While balancing home life with the professional load of entrepreneurship can be extremely hard, many mommies make it look effortless. Let's look a few moms that have risen to the occasion.
It is no secret that one of the biggest fears people have is receiving an audit notice from the IRS. It ranks right up there with being diagnosed with a life-threatening illness. Of course, the IRS does nothing to alleviate this fear because the more frightened you are, the less likely you will be to cheat on your taxes.
The IRS audited one out of every 104 tax returns in federal fiscal year 2013. It's becoming increasingly evident that the greater your total income, the more you'll attract the agency's attention. Last year, the IRS audited about 10.85 percent of taxpayers with income greater than $1 million. The audit rate dropped to 0.88 percent for those with income less than $200,000.
Some of the audits were taxpayers pulled at random. The rest of the returns are selected for examination in a variety of ways.
If you want to participate in the potentially attractive returns of a market-driven investment but would also like a guaranteed return, an indexed annuity might be worth checking out.
The performance of indexed annuities, also referred to as equity-indexed or fixed-indexed annuities, are tied to an index (for example, the Standard & Poor's 500*). They provide investors with an opportunity to earn interest based on the performance of the index. If the index rises during a specified period in the accumulation phase, the investor participates in the gain. In the event that the market falls and the index posts a loss, the contract value is not affected. The annuity also has a guaranteed minimum rate of return, which is contingent on holding the indexed annuity until the end of the term.
This guaranteed minimum return comes at a price. The percentage of an index's gain that investors receive is called the participation rate. The participation rate of an indexed annuity can be anywhere from 50 percent to 100 percent. A participation rate of 80 percent, for example, and a 10 percent gain by the index would result in an 8 percent gain by the investor. Some indexed annuities have a cap rate, the maximum rate of interest the annuity will earn, which could potentially lower an investor's gain.
New business owners tend to hit the ground rolling – eager and exited to prove to the world that it can be done. A byproduct, however, is that the owner often works so hard that life is not balanced.
Time flies, the years – 2, 3, 4, 10 – pass and these well-intentioned entrepreneurs are still grinding. The kids are growing rapidly, recitals are missed and sports activities have to be watched on cell phone video. Going to work becomes something to dread and when they get there they have little to contribute other than being present.
Such owners may be experiencing entrepreneurial burnout, a state of emotional and physical exhaustion. With the weight of the livelihood of others in their hands, small business owners cannot afford burnout. Still, it is a troubling occurrence that happens all too frequently.