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2018 midterm elections are over – what small businesses can expect next

(BUSINESS NEWS) Small businesses are impacted by political uncertainty, and knowing what’s coming can help strengthen your 2019 plans.

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small businesses post-midterms

Now that the midterm elections are officially in the rearview mirror and the dust has settled, there’s a lot to unpack for small business. There were plenty of ups and downs this election cycle.

Write-in votes, runoffs, voter roll purges, and historic turnout on both sides. With California finally certifying their last ballots, we can now move onto the next chapter: what happens now?

The Democrats gained several seats in the House, retaking their majority status there, and picked up a few governorships, too. But a few Senate seats flipped red, as well. The landscape of America’s identity is changing, and there are many new facets to what it means to be a part of this country.

But, what do all of these changes in the social and economic fabric mean for small business? Well, that’s an interesting question. There’s a lot to like, but a few things to groan at, too. I’ll do my best to lay everything out for you to make your own assumptions on how it’ll affect your business.

What will this Congress’ policy look like (AKA The Big Picture Stuff)?

The Democratic side of Congress will be progressively minded. A younger, more diverse group has won seats, and they’re focused on changing the status quo. With the Democrats taking power in the House, this severs Republican control and will require a lot more conversations instead of pushing bills through with little pushback.

While there will be a lot of gridlock, there are bright spots, and many pieces of legislation have bipartisan support.

One possibility for legislation to pass is a bipartisan retirement package, which makes it easier for small business owners to offer retirement plans to their employees that won’t break the bank. Congress has already moved on this issue.

The biggest objective, one the Democrats have dreamt about since the early 2000s, is the infrastructure bill. Given the state of the country’s crumbling roads, bridges, and streets that need repair from coast to coast, the left really wants this. If both parties can find common ground on funding this issue, and work with the President to realize it, the bill could put a lot of Americans to work, but also energize many small businesses with long-term projects equalling up to $1 trillion dollars.

Tinkering with another healthcare bill is something the Republicans would like, and McConnell is quoted as saying he’d consider working with the Democrats to improve, not repeal the Affordable Care Act. This would bode well for small medical practices, along with mom and pop pharmacies, considering one of the central tenants of the revision would be a bipartisan plan to lower prescription drug prices. Realistically, though, the issue is probably a stalemate until the next big election swing.

So, what does this all mean for small business owners?

Well, it’s kind of hard to put an exact point on it. One of the biggest takeaways of the midterm results is that one-third of Congress was up for election, and that equates to significant consequences for federal, as well as local, policy.

County, city, and state legislators were all on the ballot, and for a lot of states, things have changed. Some of the rules will change for the better and the worse, but ultimately, small business owners want to know if zoning codes will change, if there will be sin taxes, or if there will be more attempts at taxing soft drinks to help pay for parks. Statewide, there are a few changes in the laws to pay attention to.

When it comes to small businesses, the focus is simple: What’s going on with the economy? What regulations are being put in place or rolled back? How can I generate cash flow?

As of right now, the economy is booming. Small businesses don’t want any kind of change. That doesn’t mean small business owners wouldn’t want any improvements or modifications; they want this party to keep going.

The Republican-held Congress passed a tax bill in 2017, and while some have benefitted from the cuts, some individuals and small businesses haven’t seen the results of those yet, and it’s uncertain if they will. When Democrats take control, the natural inclination is to wonder if taxes will rise to bolster social programs, but as of right now, all signs are pointing to no changes in policy on the federal level — maybe. (Read on for more about that.)

Will the minimum wage increase?

One of the topics that’s bound to come up between parties is the minimum wage. The newly elected members of the House have already scheduled a hearing entitled, “Mandating a $15 Minimum Wage: Consequences for Workers and Small Businesses.”

Because the issue is divided across party lines, the issue could get tied up in party politics, but there’s hope for low wage workers – both Arkansas and Missouri, two red states both voted to raise their minimum wages by 2021 in Arkansas and 2023 in Missouri, respectively. If you’re in a state that’s talked about raising minimum wage recently, you might want to start crunching numbers to plan and prepare down the line.

Let’s get back to the tax cut. Will there be any changes to the 2017 bill?

Before the midterms, President Trump promised a middle-class tax cut (not exactly what happened) but both sides could come together on it in the future. The President has said on more than one occasion that the cut is one of his top priorities, but getting the Democrats to work with him on that will be nothing short of a challenge.

The 2018 tax bill included large cuts for corporations, and now Democrats are poised to oppose any kind of cuts to the wealthy going forward. But, the President has said he’s open to working with House Speaker Nancy Pelosi to cut middle-class taxes, even if it means raising the corporate tax rate, which is set at 21%.

“I would absolutely pursue something even if that means some adjustment to make it possible,” Trump said at a press conference. Although he didn’t say precisely what he’d be willing to bargain with, it’s a nice idea.

Democrats will adhere to a strict pay-as-you-go stance on new measures to avoid adding to any national debt. Trump could find small fixes that he could still claim as a tax cut, which might include raising tax-free contribution levels for retirement plans or supplementing health savings accounts, both moves that have bipartisan support.

What about tariffs and trade?

The US-China trade wars have been dominating the news cycle – when the cycle isn’t rolling with new stories like the customers served on a McDonald’s sign, has a lot of businesses, both big and small standing at attention.

Back in September, China announced $60B in retaliatory tariffs following declared U.S. intentions to attach tariffs to $200B of goods. On the US side, the list of targeted goods included vehicles, tech, medical, industrial machinery, aircraft, and textiles. China targeted U.S. products such as food, beverages, cars, and natural gas.

Small businesses have to keep in mind the ripple effect: while steel or cars might be impacted, consider the side businesses that are included alongside those vehicles, like interiors or paint, for example.

The average small business owner has a fundamental set of concerns, they’re not interested in the US and China battling over steel, but instead, they’re interested in how these conversations and sound clips will affect them in the long run.

Small business owners should be wary of rising costs thanks to these tariffs, possibly evaluating new sources or their pricing.

Think about it, a small business has a few critical concerns:
– Can I get access to capital?
– Will this impede my acquisition of new business?
– Can I get access to new contacts?
– Can I operate in the black?

While these matters seem uncertain right now, there’s hope that Congress will step in to work with the president on new import and export laws to help stabilize the situation. My prediction is that it happens, and we come to a mutually beneficial agreement.

What about small businesses’ relationships with big banks?

This split of power between the houses likely signifies that little will change for banks. The House will push for regulation, while the Senate won’t let anything close hit the ground.

One thing to keep in mind is that Rep. Maxine Waters (D-CA) will likely ascend as the next chair of the House Financial Services Committee, come January. Rep. Waters is a vocal advocate for consumer protection and supports a crackdown on big banks.

Rep. Waters has sat on this committee since 1991 and is a ranking member on five of the panel’s subcommittees. When asked about her current position on regulations regarding small business, she said:

“I am committed to ensuring that hard working Americans and our nation’s small businesses have opportunities to thrive, expanding and supporting affordable housing opportunities for our nation’s families, making sure that the safeguards are in place to prevent another financial crisis, protecting consumers and investors from bad actors and conducting appropriate oversight of the Administration and the regulatory agencies under the Committee’s jurisdiction.”

She continued, “I have always maintained an open-door policy, to hear the priorities and concerns of all stakeholders, including representatives of the financial services industry, as well as advocates,” she added. “I look forward to continuing to work with Members on both sides of the aisle on sensible solutions to benefit hardworking Americans and strengthen our nation’s economy.”

While it sounds like Rep. Waters has a lot to aim for as the ranking member on the committee, it’s likely that no new legislation will pass unless both sides agree it’s a slam dunk for America.

There’s good news out of the House Committee on Small Business.

Reps. Doug Collins (R-GA) and Tom Marino (R-PA) introduced the bipartisan H.R. 7190, the Small Business Reorganization Act in the House to improve the bankruptcy system for small businesses. The bill, cosponsored by U.S. Rep. David Cicilline (D-RI), would amend Chapter 11 bankruptcies. A similar bill was introduced by U.S. Sen. Chuck Grassley (R-IA) and cosponsored by U.S. Sen. Sheldon Whitehouse (D-RI) in the Senate.

“Small businesses are some of the best innovators in our local economies, and this bill would bring much-needed improvements to the bankruptcy code so that owner-operated businesses can recover from financial hardship and continue creating jobs,” said Rep. Collins.

Rep. Marino added, “By reducing unnecessary procedural burdens, enhancing oversight, and increasing the debtors’ ability to negotiate, we will ensure quick and successful reorganization and provide small business the ability to restructure in a way that meets their needs.”

Considering the original laws and codes were written for large companies, the reinvention of Chapter 11 would dramatically change how small businesses are affected by bankruptcy. This legislation would reduce the red tape around bankruptcy. Key provisions would increase small business debtors’ ability to negotiate reorganization while retaining business control and reducing procedural burdens and costs.

So, what’s my big prediction?

If there’s any significant takeaway in regards to small business, it’s that they’re resilient. There’s a significant wave of optimism right now. Small business confidence is high, and the markets are reflecting that.

Right now, there are fantastic things happening to both Wall Street and Main Street, alike. With the new Congress taking session in January, it’s likely that one of two scenarios will take place: the houses work with President Trump to push forward legislation that helps the country soar to new heights or (probably a little more predictable) a lame duck session that will remain gridlocked thanks to partisan politics.

If that’s the case, don’t sweat it. Buyer sentiment is high, and new businesses are opening up every day. Going into 2019 and a new Congress, I’d say a whole lot of no news is good news for small business.

Robert Dean is a writer at Adia and The American Genius. He is a writer, journalist, and cynic. His most recent novel, The Red Seven is in stores. Currently, he’s working on his newest novel, Tragedy Wish Me Luck. He also likes ice cream and panda bears. He currently lives in Austin. Stalk him on Twitter.

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Confessions of a productive person: keeping a clean desk

Being a productive, clean person is nowhere near as difficult as it sounds – start with these simple steps focused on reduction in your life.

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minimalism productivity

We keep a clean office, there’s no secret about that, and the desks are usually clear of papers and clutter. Some call it minimalism, others call it clean, but mostly people just call it “wow” and ask how we keep such clean lives.

Studies show that your brain is hardwired to have cluttered thought patterns when you are surrounded by clutter, yes, even those of you that live in a pile of papers (which of course you have “a system” for). It can be intimidating to even get started when you have a messy office, but there are a few things that anyone can do to regain control and help your brain function at its optimal rate, improve productivity, and prove to clients and coworkers that you mind the details like no one else.

Friends and coworkers ask me constantly how I get so much done in the average day, and it isn’t because of my smartphone, no, it’s because I am a focused workhorse. A huge part of that is keeping a very clean environment. Let’s talk about why that’s important (and why you should ignore the “buut geniuses have messy desks” bullcrap editorials).

Perhaps you put to do items on post it notes or pieces of paper, or you pile up files that need to be dealt with – one of the most common reasons desks are messy. This method of task management is ineffective and tells your brain to panic because what you’re doing right now may or may not be as important as those 35 stickies, so you either pause frequently to reflect on the dozens of other unprioritized tasks, or your brain constantly churns in the background having been distracted with this mess that represents tasks, or you simply learn to tune the noise out, which defeats the purpose of your reminder system.

To change this, either implement tech tools to manage your tasks (search this site for “task management” and see dozens of tools) or keep one pad of paper or journal on your desktop.

minimalism

Another common item on desks is what? Envelopes. One of the tricks I’ve found is that no matter the envelope, it gets torn open and processed while I’m on hold or on a conference call I don’t have to speak on. Before you leave for the day, every bill should be torn open and either dealt with, filed, or if you must keep it on your desk, have a beautiful inbox or even a clipboard to keep them all in the same spot.

There are much more sophisticated methods, but let’s face it, you have to start small to ensure good habits. The same goes for files – be smart about processing paper in your down time.

My core confession that you may have picked up on so far is that I love to trash stuff.

I didn’t used to be this way, I used to hard paper, but it is how I began my journey toward being more productive – trashing. Remember that every time you throw just one envelope away, you’re making progress that is tangible, and you should learn to enjoy that progress and associate positive feelings with keeping things clean.

What else holds you back from keeping a clean work area and focusing on your tasks for the day? Often, books pile up or files start stacking themselves up magically. I’ve found that having aesthetically appealing storage systems (boxes, filing cabinets, files, pen holders, etc.) make you feel rewarded for using them. It’s a subtle trick, but if you invest in your desk accouterments, you feel compelled to use them, which inadvertently keeps you organized.

Look, these are simple things to do – ditch sticky notes, deal with mail and files before you leave for the day, and surround yourself with beautiful tools that keep you organized. This is where it begins – instead of being addicted to hoarding crap on your desk, work on rewiring your brain to enjoy reduction.

This editorial was originally published in November of 2013.

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Business News

You absolutely don’t need to be a 100% match for a job to apply

(CAREER) Most people believe they should only apply for their dream job if they’re a perfect match, but studies say that’s the wrong approach.

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apply for a job even if not 100% a match

You don’t need to be a 100 percent match for a job to apply. You just don’t.

We’ve all seen the crazy job postings:

-Must be fluent in Mandarin
-Must be be full-stack coder
-Must also have real estate license
-Must be a rockstar ninja (uuugh)

After seeing endless open positions with specific requirements, it’s no wonder that so many job seekers become discouraged. How can anyone fit 100 percent of the requirements on the job listing? And actually, most people don’t. According to a recent study, you only need to meet ~70 percent of the job requirements to be a good fit for a job.

So you’re telling me a requirement isn’t actually a requirement?!

The study analyzed job postings and resumes for over 6,000 positions across 118 industries, and they found that applicants are just as likely to get an interview whether you meet 50 percent or 90 percent of the requirements.

Crazy, I know. That law of diminishing returns will eff you up.

But what about women? I wondered the same thing. Surprisingly, the interview data was in favor of women that meet less of the requirements. In fact, the study shows that as a female, the likelihood of getting an interview increases if you simply meet 30 percent of the requirements. Also, female applicants are just as likely to get an interview if they meet 40 percent versus 90 percent of the job requirements.

Before you start complaining that women have it better in the job search process, correlation doesn’t equal causation.

Interestingly enough, 64 percent of the female users rejected at least one job where they matched 50 – 60 percent of the requirements, while only 37 percent of male users did. This leads us to believe there more implicit factors to take into consideration, like imposter syndrome throughout the interview process.

If you’re a recruiter or employer, this may seem like more work. But in an increasingly competitive job market for both employers and applicants, this presents an opportunity to get to know people for who they actually are, not just on paper. And resumes often do a poor job of reflecting that — especially the ever-important soft skills.

Key takeaways:

As we’ve gone through this study, here are a few practical action items for job seekers:

1. Apply for a lot of jobs to increase your number of interviews.

The study shows that increased interviews are a direct result of increased applications, not just picking and choosing what you think you’re a good fit for. Which brings us to our next point:

2. Go for those “stretch” roles — you never know what may come of it!

Send in a lot of applications, but don’t let that stop you from approaching the process thoughtfully. Recruiters can tell if you’ve skimped on the cover letter or your resume, and a thoughtful approach to the application process will be noticed and appreciated by recruiters, especially for those reach roles.

3. Don’t second-guess yourself.

We’re always our own worst critics, and according to this, we don’t need to be — especially throughout the job application process. Job hunting is stressful enough, so put on your most upbeat playlist (or Beyonce), say your affirmations, and go on with your bad self and start applying!

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Why email remains the top communication tool for businesses

(BUSINESS NEWS) Communication has changed tremendously over the years, but email appears to remain home base. Here’s why.

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voice and SEO

Smartphones are so popular, you might assume that phone calls, text messages, video chat, Slack, Trello, or just social media would have surpassed email as the most popular form of communication. Surprisingly, they have only enabled its growth.

Email is, hands down, the most prominent form of communication and collaboration among businesses, and that’s not expected to change any time soon. “Over the course of the last year, there has been considerable discussion about the role of email in workplaces that depend heavily on social network and other collaboration tools,” says David Roe of CMS Wire.

“In these discussions, there appears to be a general consensus that while social networks are useful to achieve work-related goals, email remains the undisputed communications tool in the enterprise.” The statistics back up these claims.

Worldwide, there are more than 2.5 billion email users, and that number is expected to climb to 2.9 billion by the end of next year. That represents more than a third of the global population operating one or more active email accounts.

Right now, only about 25 percent of current email accounts are business accounts, but we can expect a rapid increase in those as well. The average office worker will send and receive as many as 121 email messages per day.

David Roe also addressed a SendGrind study called The Future of Digital Communication, which evaluated trends in digital communication among the various generations. The findings showed that 74 percent of people chose email as their preferred method of communication and 89 percent email at least once every month for business or personal reasons.

Email is a huge part of our collaborative and communicative society, so understanding its role in business and society can play a huge role in mastering trends to the best advantage in your enterprise.

Roe further explains that, although the status of email has not changed within the walls of business enterprises, it has evolved. “The kinds of people using it are changing so it is only logical that the way it is being used is going to change too,” he says.

A younger generation that’s more in tune with digital trends and technology will soon be dominating the workforce, and email is adapting. SendGrind CMO Scott Heimes said in The Future of Digital Communication report that new technology will render email a new, more useful entity.

“With chatbots making their way into email and messaging apps in 2017, 2018 will be the year in which chatbots effectively provide personalized experiences to customers, if done correctly,” Heimes said. “Marketers will leverage data from email marketing, display retargeting, social media ads and chatbots to create a cohesive and unified experience for customers.”

This is just a glimpse of what’s to come for email users, and businesses may capitalize on its new roles for more effective collaboration.

Given the steadily evolving landscape that is email, here are the chief reasons we can expect it to stick around as a viable business tool:

Convenience: Can you imagine being on the phone or texting/social messaging for the equivalent of 121 email messages per day? You can often accomplish more in a 10-minute phone call than you can in 10 emails, but sending and receiving messages when it’s the most convenient option can be a huge draw for busy employees.

Security: Phone calls can be overheard, texts intercepted, and social media messaging accounts hacked. Email can also be hacked, but thanks to encryption services that plug right into Microsoft, Gmail, or other enterprise email services, that data can be protected.

Work-From-Home Collaboration: According to the Bureau of Labor Statistics, 24 percent of employees performed all or some of their work from home in 2016, and that number’s expected to grow substantially over the coming decade. Although collaboration programs are popular, working from home simply wouldn’t be possible for this many people without email.

Ease of Talking to People: Some people freeze up when they speak on the phone. Others just don’t like it. Millennials and Gen Z employees are entering the workforce in full swing now, and their use of digital technology makes email a go-to solution. Workers who hate phone conversations can communicate easily with their devices and avoid too much interpersonal interaction.

Information Transfer: There’s rarely a better method of transferring information than via email. Not only can you transfer files and documents to the recipient(s), but you can also store the information for future reference.

Instant Notifications: Email speeds are faster than ever. Posts arrive in your inbox nearly instantaneously. Real-time communication is practicable in a convenient, simple method.

Ease of Access: Thanks to smartphones, you can get access to your email pretty much anywhere. There’s also no need for a WiFi connection since data plans are robust and cell phone coverage broader than ever.

Email is not a perfect system. Like every other form of communication it has its downsides, but it’s proven to be the most useful form of communication to date. Although new forms of collaboration surface regularly, email probably isn’t going anywhere.

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