The views and opinions expressed on this podcast are for informational purposes only, and solely those of the podcast participants, contributors, and guests, and do not constitute an endorsement by or necessarily represent the views of The Hartford or its affiliates.

You're listening to the Small Biz Ahead podcast, brought to you by The Hartford.

This podcast is brought to you by The Hartford. When the unexpected strikes, The Hartford strikes back for over 1 million small business customers with property, liability, and workers compensation insurance. Check out The Hartford's small business insurance at TheHartford.com.

Gene (00:02):

Hey everybody, this is Gene Marks and welcome to my weekly podcast for the Hartford Small Biz Ahead. This week, I'd like to talk to you about accounting systems. Now, please don't stop listening. This is an important topic because if you're running a small business, at some point, you're gonna be needing an accounting system, right? I mean, okay, maybe you're a startup and you're doing your accounting manually on a spreadsheet or maybe you've already got an accounting system but you can't really use it to manage your orders and your inventory, or it can't keep up with your needs, you're growing, it's not scalable. Maybe you're using like a bookkeeping system, but you want something that's more specialized for your industry, all these different things, or these are all reasons why people either buy or replace or upgrade their existing accounting system.

Gene (00:52):

Did you know that the accounting software market, it's projected to be as big as $20 billion by 2026? So, you know, a lot of people out there in the market to buy accounting systems. And there are a lot of great accounting systems that are out there. I'm gonna name a few coming up. But I'd like to share with you some thoughts on whether you're gonna buy a new accounting system. You've never had one before, or even if you're gonna replace your existing accounting system. I do have some thoughts for you. So here we go. Thought number one, if you're gonna get at an accounting system, it needs to be a cloud based accounting system. Now this can be an accounting system that is fully online, or it can even be one that you just in get installed on managed services servers.

Gene (01:36):

You know, that they can host it for you, but it's gotta be in the cloud. I mean, back in the day, I know you people ran their accounting applications on their desktop computers or their servers, but in the cloud, I mean, come on, everyone who has permissions can access the data. That's including you, if you're the owner and you can access it wherever you are and from whatever device that you're using. So you really wanna make sure that you're giving yourself that ability because people are trying to do stuff while they're on the run. They want to send out invoices on their phone. They want to check their receivables on their iPad. You really will have a much easier time doing that, if it's a cloud based system. Now you might say, hey, I'm not sure if it's so secure,

For a lot of small business owners who are just starting out, turning to friends and family for some initial financial assistance might seem like a safer option than applying for a traditional loan. However, raising capital through the help of loved ones is not without its own set of risks and consequences. In this episode, Jon Aidukonis and Gene Marks, along with Leonardo Shapiro, discuss how small business owners can approach friends and family for financial investments without putting a strain on those personal relationships.

0:58—Today's Topic: Should I Ask My Friends and Family to Help Finance My Small Business?

1:40—Integrity and transparency are the essential components of any financial arrangement. However, they are especially important when those agreements have been made with your friends and family.

3:10—While it's easier to turn to friends and family for financial assistance, business owners should avoid approaching loved ones who can't afford it because of the consequences.

8:14—Even though you are dealing with friends and family, you still need to be upfront with them about the terms of this financial arrangement; by clearly stating whether this is a loan or an investment, you can prevent any future confusion or disappointment.

10:23—Don't be surprised if the personal friends and relations who helped finance your small business start scrutinizing your operations or your spending. After all, they have a right to know how their money is being used.

11:53—Because your friends and family may feel obligated to finance your business due to their preexisting relationship with you, you need to assure them that it is also okay if they decline your offer.

17:46—Given both the emotional and the financial investment that you are asking of your loved ones, you may be better off inviting them to be a co-owner rather than asking them for a loan.

19:29—Treat this financial arrangement as you would any other professional agreement, complete with legally binding contracts.

20:25—If the terms of the loan or investment are really impacting your personal relationship with someone, you might want to consider buying out their share to salvage the friendship.

22:24—Although transparency is always a good idea, you as a business owner get to determine how much time you want to spend updating your investors.

23:59—You need to explain to your friends and family how dilution works and how it will impact their personal shares once more investors join.

25:36—To prevent friction between outside investors and your personal relations, it helps to appoint one person to speak on behalf of your friends and family during formal business meetings.

27:07—Educate your friends and family about all the technicalities and risks involved with this business venture beforehand.

29:35—Never underestimate the importance of a good lawyer who understands your business and can advise you on all aspects of this financial agreement, including all the legal documents.

• Brex
• AngelList

The views and opinions expressed on this podcast are for informational purposes only, and solely those of the podcast participants, contributors, and guests, and do not constitute an endorsement by or necessarily represent the views of The Hartford or its affiliates.

You're listening to the Small Biz Ahead podcast, brought to you by The Hartford.

This podcast is brought to you by The Hartford. When the unexpected strikes, The Hartford strikes back for over 1 million small business customers with property, liability, and workers compensation insurance. Check out The Hartford's small business insurance at TheHartford.com.

Gene (00:01):

Hey everybody. This is Gene Marks and welcome to this week's episode of the Hartford Small Biz Ahead podcast. This week, I'd like to talk to you a little bit about buy-now-pay-later services. I'm not sure if you're familiar with what they are, but let me explain to you what they are and why they could be so important for your business. I mean, listen, some of your customers may not have enough cash readily available to buy your products. Others may prefer not to use a credit card. So, does this mean you've lost the sale? Well, some small business owners, many of my clients, they are learning that this may not be the case. That's because they're offering buy-now-pay-later as another payment option, or sometimes it's called BNPL. Buy-now-pay-later is not too different from those layaway plans.

Gene (00:45):

Remember that your grandparents used to have, they would buy like a sofa. They would put a down payment and then they would pay it off over a period of time. It's kind of the same thing, now. Our customer buys an item in your store or at your business and after making a deposit on the item, they pay it off, usually over the next two to 12 months and the customer pays no interest at all, during that payment period. Consumers happen to love it. Recent research from one marketing agency says that before the holidays, approximately 60% of U.S. adults have used it when buying products and of those who have used it, 80% planned on used using it during the holidays for gift buying. So it's very, very popular. It's also really popular among younger buyers, particularly Gen Z and younger millennials. With more than half of them saying they bought a product on social media using the option.

Gene (01:35):

During the holiday season, according to Adobe, revenues from buy-now-pay-later plans, rose 21% from the previous year. So these things are, they're really, really popular. I spoke to one client of mine in the Philadelphia area. She's like a marketing manager at David's bridal. They sell wedding gowns and other things for brides for their weddings. She told me that they'd be using buy-now-pay-later services for more than 16 months and with great success. She said that they've seen increased adoption and conversion with their buy-now-pay-later options. She finds that the signup process is quick and it's easy. And the customer experience is pretty seamless from the moment somebody walks in, visits their website,

Does it take your clients more than 30 days to pay an invoice? Then, perhaps it's time you looked into hiring a factoring company. Factoring companies can help small business owners maintain a steady cash flow by reducing the amount of time it takes to receive payment. In this episode, Jon Aidukonis and Gene Marks, along with Kelly Nelson, VP of Business Development at TCI Capital, discuss how factoring companies can contribute to the growth of your small business.

0:33—Today's Topic: How can a Factoring Company Support the Growth of My Small Business?

2:39—Factoring companies are third-party institutions that can help improve your small business's cash flow. For a percentage of your invoice payment, these companies can ensure that you receive immediate payment from your customers, rather than having to wait until the end of a longer pay period.

3:34—Factoring tends to be most popular among service based small businesses.

5:47—If your small business is employed by the government, you may need to review the terms of your specific contract because these will determine how easy it is for a factoring company to redirect the money.

6:56—Small business owners whose customers are based in other countries will have to find a company that specializes in international factoring, since this is not always a standard service.

7:43—Factoring is not the same as debt collecting.

8:54—Before a factoring company agrees to work with you, they will want a clearer understanding of how you are currently financing your business, as well as your cash needs.

10:29—Factoring rates are typically determined by how much you're billing out per month and the waiting period for each invoice.

11:31—As a business owner, you need to know whether you want factoring to become a regular part of your current operations so that you can find a company that fits your specific needs.

14:36—Since your clients will be the ones paying the factoring company, you need to provide the factoring company with an accounts payable contact so that they can make all the proper arrangements.

16:42—After buying your invoice, factoring companies retain a small percentage as compensation for providing you with the capital upfront.

18:58—As small businesses continue to bounce back from the pandemic, there has been a noticeable increase in the need for factoring companies. For many small businesses, their line of credit is not enough to properly finance their growth rate.

20:44—In the event that your client can't pay their invoice, it is your responsibility as the vendor to use the 10% reserve to buy back the invoice from your factoring company and pay the remaining balance.

23:27—If you don't want your customers to know that you are working with a factoring company, you would have to set up a non notice with the factoring company for a higher fee.

24:32—Ideally, you should be open with your customers about working with a factoring company so that they aren't caught off guard by any third-party communication.

26:54—To avoid paying any defaulted invoices out of pocket, small business owners should go ahead and build those potential costs into their initial proposals.

Throughout this pandemic, many business owners have found themselves turning to banks, online lenders, and even loved ones to raise some additional capital. However, did you know that you can also apply for financial assistance through the Small Business Administration (SBA)? In this episode, Jon Aidukonis and Gene Marks, along with Julio Casiano, an SBA Deputy District Director, discuss how small business owners can take advantage of the SBA's Economic Injury Disaster Loan Program, as well as its other various resources.

Note: The EIDL COVID-19 declaration ended on December 31st, 2021. The podcast was recorded before this date.

0:57—Today's Topic: How Can the SBA Help My Small Business During the Pandemic?

2:06—The Economic Injury Disaster Loan (EIDL) Program provides financial assistance to small businesses that have been negatively impacted by this pandemic. However, funding for this program was only available through Dec 31, 2021.

5:14—As long as you own a US-based business that was open prior to the pandemic, you are eligible to apply for an EIDL loan.

7:10—President Biden recently made a change to the EIDL program, which now allows business owners to use the proceeds from their loan to pay off preexisting debt.

9:35—Another amendment that was added to the COVID relief program was a provision that offers grants of up to $10,000 for small businesses that are located within a low income sector and can provide proof of a 35% revenue decrease between 2019 and 2020.

11:51—Businesses in low income areas that have lost 50% or more of their revenue are eligible for an additional $5,000.

12:09—Only 10% of the 3.8 billion dollars reserved for grants has been used, so the SBA has been reaching out to businesses in low income sectors that have already applied or taken out an EIDL loan to see if they are interested in the grant.

15:24—The SBA was created by the government in the 1930's to help provide struggling US businesses with financial assistance and capital, particularly during national disasters such as this pandemic.

17:48—During more economically stable periods, the SBA primarily serves the country by guaranteeing lenders who want to help small businesses get access to much needed loans. In certain instances, the SBA can help business owners qualify for traditional bank loans.

20:19—Before applying for a 7A loan, small business owners should reach out to one of the SBA's resource partners at SCORE (Service Corps of Retired Executives) who will help them package their loan or application properly.

22:47—In addition to its resource partners, small business owners can also turn to the SBA's Small Business Development Center and the Women's Business Centers for free support.

24:16—The SBA offers assistance to all kinds of small businesses.

27:05—The SBA will assess potential borrowers on their credit score, their ability to pay their loan, and their collateral.

29:14—If you only need a modest amount of capital for your business, you should consider applying for a micro loan through one of the SBA's community lending organizations; these usually have a less rigid eligibility criteria.

31:17—It is up to the lender's discretion to determine whether they will provide you with a loan or not.

While initially regarded with skepticism, online lending has become one of the leading finance options for small businesses that are unable to meet the rigid criteria for traditional bank loans. Still, before you enter any formal agreements with a potential lender, it's important to carefully examine whether your business is in a position to fully benefit from the terms of the actual loan. In this episode, Jon Aidukonis and Gene Marks, along with Lendio CEO, Brock Blake, discuss several factors that small business owners need to keep in mind when navigating the online lending process.

1:48—Today's Topic: How Do I Navigate the Online Lending Process?

3:45—Online lenders serve as a quick and easy financing option for the many small businesses that might not typically qualify for a loan at a traditional bank.

4:23—By offering loans to overlooked or marginalized business owners, online lenders are actually increasing the diversity within the small business community.

6:17—To prepare for the application process, small business owners should have access to all their tax return information as well as their bank statements.

8:04—Don't assume that every potential lender on the marketplace platform has been properly vetted. Business owners still need to research each lending institution that they plan to work with to ensure that it's a reputable company.

9:46—Always conduct an ROI (Return On Investment) analysis on a loan prior to signing to make sure that the terms of the agreement are appropriate for your business.

12:14—While there are some questionable lenders online, most of them are quite trustworthy.

13:35—Online lenders serve a specific market that is typically overlooked by traditional banks.

14:13—Lending institutions will assess your credit score, your cash flow, and your collateral to determine how much of a risk your business poses and then, set their interest rates accordingly.

16:09—The best time to apply for a business loan is when you don't need it.

19:57—Be prepared for potential lenders to inquire about your internal financial affairs.

21:25—Given how integrated business technology is becoming, future lending marketplaces may be able to predict exactly when their potential clients will need a loan.

23:38—Due to the pandemic, many banks are also starting to move their loan application process online too.

25:11—If your goal is to ultimately work with a bank, but your business simply isn't ready yet, then utilizing an online lender is an ideal way to help you finance your operations until you are in a better position to apply for a traditional bank loan.

• Lendio

The views and opinions expressed on this podcast are for informational purposes only, and solely those of the podcast participants, contributors, and guests, and do not constitute an endorsement by or necessarily represent the views of The Hartford or its affiliates.

You're listening to the Small Biz Ahead podcast, brought to you by The Hartford.

The views and opinions expressed on this podcast are for informational purposes only, and solely those of the podcast participants, contributors, and guests, and do not constitute an endorsement by or necessarily represent the views of The Hartford or its affiliates.

You're listening to the Small Biz Ahead podcast, brought to you by The Hartford.

This podcast is brought to you by The Hartford. When the unexpected strikes, The Hartford strikes back for over 1 million small business customers with property, liability, and workers compensation insurance. Check out The Hartford's small business insurance at TheHartford.com.

Gene (00:02):

Hey everybody. It's Gene Marks and welcome to this week's segment of The Hartford Small Biz Ahead podcast. Thank you so much for joining me. Let's take a shift this week, a little pivot and talk a little bit about social media marketing. I know there's a lot of attention that's given towards spending time in marketing on Twitter, as well as Facebook and obviously LinkedIn as well. And that's all well and good but today I want to talk about Instagram. Instagram, as you know, is owned by Facebook and I don't want to insult your intelligence, but it's a video and photo social media platform. There's like a billion, monthly active users around the world with more than a half a billion of them are on the platform daily.

Gene (00:46):

It is the sixth biggest social media platform behind WeChat that's China's Facebook messenger, WhatsApp, YouTube and Facebook, right? So it is a giant platform for people that use it. I don't know if you're on it or not, but the demographic trends younger. I'm on Instagram. I don't post anything on Instagram, but I follow a lot of hilarious and funny accounts on Instagram and scroll through it probably every day. I even get ideas for comms that I write or funny things to post and other social media sites because of it. But my business isn't on it. Having said that though, many businesses are on Instagram and really using it to make some money. One example is a guy named Hugh Dillon. Hugh is a freelance event photographer.

Gene (01:33):

And he's based in my hometown of Philadelphia. He has a great website called Philly Chit Chat. And what the guy does is he goes all around the area and he attends events. He takes pictures and he leverages Instagram to help promote his photography business. So, he's got about 40,000 followers right now on his blog account. And he's got 10 or 15,000 followers on Instagram as well. So he shows up when there's celebrities in town or events he's attending or nights out with his friends and family. And he says people recognize him from Instagram. He says it frequently turns into work for him. So it's a perfect example of an entrepreneurial photographer that's really leveraging that site to make money for him. I talked to another woman, a client of mine, her name is Kristen McCoy.

Gene (

With companies all across the US struggling to fill vacant posts due to the current labor shortage, many small business owners have started offering same day pay as a way to attract new employees. However, while same day pay offers a definite competitive advantage in our current market, there are a few factors you need to consider before you adopt this new payment system, namely, your cash flow and your current payroll company. In this episode, Jon Aidukonis and Gene Marks provide small business owners with a detailed look at the same day pay model.

1:40—Today's Topic: Will Offering Same Day Pay Help My Small Business?

1:56—One way to attract new employees to your small business, particularly during this labor shortage, is to offer same day pay.

3:52—Same day pay is a program that enables you to pay an employee 50% of their wages for a given day and withhold the remaining 50% until the end of the pay period. As a small business owner, you can adjust the percentages according to your needs.

4:43—Offering same day pay as an employee benefit will really give you a competitive edge over other businesses when recruiting new talent.

6:19—This program might not be suitable if your small business is prone to cash flow issues.

6:56—Due to potential complications with taxes or deductions, same day pay is also not a good option for business owners who handle their payroll themselves. It is easier to let a payroll company handle this type of situation.

8:36—While same day pay is typically seen in the retail and service industries, it is now finding its way into larger corporations and Fortune 500 companies.

9:39—In addition to attracting new talent, same day pay has also become popular among businesses due to its positive impact on existing employees; the instant gratification has been shown to improve both staff morale and performance.

10:50—Small business owners who offer same day pay should really consult with a professional payroll service provider because it can save them a lot of money and legal troubles. If your current payroll company isn't familiar with same day pay, you should consider that a red flag.

• Amazon
• Walmart
• Target

The views and opinions expressed on this podcast are for informational purposes only, and solely those of the podcast participants, contributors, and guests, and do not constitute an endorsement by or necessarily represent the views of The Hartford or its affiliates.

You're listening to the Small Biz Ahead podcast, brought to you by The Hartford.

This podcast is brought to you by The Hartford. When the unexpected strikes, The Hartford strikes back for over 1 million small business customers with property, liability, and workers compensation insurance. Check out The Hartford's small business insurance at TheHartford.com.

Jon: Hello everybody. And welcome back to another episode of Small Biz Ahead. The small business podcast presented by The Hartford. This is Jon Aidukonis and I am joined by my co-host Gene Marks. Hey, Gene.

Gene: Hey Jon, how are you?

Jon: Good, thanks. How are you?

Gene: Doing good, man.

At a time when many businesses are desperately trying to bounce back from the financial setbacks of COVID-19, setting up a long term retirement program can seem like the least of your concerns. However, did you know that small businesses that offer 401k plans are eligible for a number of tax credits and financial reimbursements? In this episode, Jon Aidukonis and Gene Marks advise small business owners on how they can take advantage of all the provisions offered by Congress's SECURE (Setting Every Community Up for Retirement Enhancement) Act.

1:48—Today's Topic: How Can My Small Business Benefit from the SECURE Act?

3:14—The SECURE Act is a legislation that offers financial incentives to small businesses that help their employees save for retirement.

4:34—Under the SECURE Act, businesses with less than 100 employees are eligible for a $15,000 reimbursement if they set up a 401k plan.

5:10—The SECURE Act will also offer your business a three-year tax credit of $500 if your existing 401k plan has automatic enrollment.

6:01—Lastly, the SECURE Act provides the big holders of the 401k plan with the option of pooling all their assets together so they can negotiate lower fees.

8:30—Small business owners who choose to offer a 401k plan are encouraged to consult with their providers to ensure that they are fulfilling all their fiduciary responsibilities.

9:52—You and your employees can put away up to $56,000 a year, pre-tax, into a retirement program, but keep in mind that there are discrimination tests set in place to ensure that both you and your employees are actively contributing.

12:22—While you and your employees will have access to your retirement funds, there will be penalties each time you withdraw money. However, you can borrow against your 401k without incurring any penalties, only standard interest.

14:37—Recently, there have been attempts to pass the SECURE Act 2.0, which enables companies to make 401k contributions based on their employees' student loan payments.

16:17—The SECURE Act 2.0 will also expand your ability to contribute to Roth IRA's.

16:56—Under the SECURE Act 2.0, Roth IRA's and 529 plans would allow you to put away any previously taxed income and grow that amount tax free until you're ready to withdraw it. Any withdrawals that were spent on higher education would not incur any taxes either.

• Vanguard
• Fidelity

The views and opinions expressed on this podcast are for informational purposes only, and solely those of the podcast participants, contributors, and guests, and do not constitute an endorsement by or necessarily represent the views of The Hartford or its affiliates.

You're listening to the Small Biz Ahead podcast, brought to you by The Hartford.

This podcast is brought to you by The Hartford. When the unexpected strikes, The Hartford strikes back for over 1 million small business customers with property, liability, and workers compensation insurance. Check out The Hartford's small business insurance at TheHartford.com.

Jon: Hello everybody and welcome back to another episode of Small Biz Ahead, the small business podcast presented by The Hartford.