Facebook's Not-So-Secret Key to Success: Small Business

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For the last couple of years, we've shared what Facebook's Chief Operating Officer Sheryl Sandberg has continuously told Wall Street will be the key to the company's growth and long-term success. On Wednesday (4/27/2016), she said it this way:

“Small businesses are a very core competitive advantage for us.”

– Sheryl Sandberg, Facebook COO

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Beginning in November 2013 (when we started listening to her explain the company's small business strategy), Sandberg has consistently told analysts that the company had to narrow the gap between the number of small businesses who sign up for Facebook pages and the number of those businesses that advertise on the site. On Wednesday, the company announced higher than expected quarterly profits and, once more, Sandberg attributed the success to carrying out the plan announced over two years ago.

Growing the number of businesses that advertise

The following numbers demonstrate Facebook's ability to grow the number of small businesses that advertise on the social network.

November 2013 | 20 million business pages (mostly small businesses)

November 2013 | 1 million advertisers

(SmallBusiness.com)

February 2015 | 30 million business pages (mostly small businesses)

February 2015 | 2 million advertisers

(SmallBusiness.com)

April 2016 | 50 million business pages (mostly small businesses)

April 2016 | 3 million advertisers

Mobile advertising means small business advertising

When Facebook talks about mobile advertising revenues serving as the foundation of its dramatic upswing in revenues, you can translate the word “mobile” into the word “local” and the word “local” into the phrase “small business.” While it's obvious that large companies are also spending huge amounts of advertising dollars with Facebook, the company's breakthrough revenue source of the past two years has been its ability to grow advertising by local merchants, restaurants and other types of local establishments that depend on what Google calls, “micro-moment” decisions. Owning the golden goose that makes ads appear on a smartphone when its user is a few feet away from a business has belonged exclusively to Google Search and Google Maps. Apparently, Facebook has now cracked the code, as well.

Some keys to Facebook's success with small business

• Facebook's mobile ads are in-your-face-in the middle of the stream of content where people see cat videos shared by their friends. There is no missing them.


• Facebook took away a small business's ability to reach its own subscribers without advertising.


• Improved algorithms mean more-and-more relevancy in ads where the user is, and what the user needs at the exact moment they look at their phones.


• Facebook is investing heavily in educating small businesses how to use their advertising features by sending out teams who run conferences. Their online guides are also among the best of any such resources developed for small business users.


• The ads use the pay-per-click payment model, a method Google has taught small business advertisers to understand as a better value than other forms of advertising that don't require such engagement on the part of potential customers. (A click is “engagement” while an “impression” is not.)


• For certain types of service-oriented small businesses, a location may be less important than building long-term relationships with customers in other ways. Not to worry. Facebook is now offering small businesses the opportunity to upload a contact list to Facebook and bounce those names against the social network's database, enabling you to purchase ads right in the news stream of your prospect's Facebook account.

 

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Image: Facebook.com

Chris Hemsworth Doing Pull-Ups While Dissing 'Captain America: Civil War' Is Mesmerizing

Chris Hemsworth is a lot of things: a father, a brother, a successful actor and Thor (OK, we know he's not really the superhero/Norse god, but those muscles don't lie.)

In a video posted by The Russo Brothers on Facebook Wednesday, we see Hemsworth working on his fitness at the gym, as he gets a few things off his (huge) chest.

Doing pull-ups -- eventually one-handed -- throughout the clip, Hemsworth says, "It's funny, everyone keeps asking me: Are you Team Cap? Are you Team Iron Man?" 

“Who cares?" he adds, before joking about the new "Captain America" movie. "I mean, where was the invite for me and Hulk? You just left the two biggest, strongest Avengers out of this one, did ya? [...] Let us know when you're done messing around, then the big boys will step in."

After a moment of contemplation about his worthiness, Hemsworth picks up Thor's hammer, which flies into his hand from mid-air, assuring himself that he's "still got it."

-- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.

How Drawing May Help Improve Your Memory

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I'm not a skilled sketch artist, but I enjoy mixing drawings and doodles with my notetaking. Once, I even created a five-part series on SmallBusiness.com on how to use simple doodles on a whiteboard to convey ideas or manage a meeting. One of my favorite Twitter hashtags is #Sketchnotes where there is a steady stream of examples of people using doodles and drawings to capture the essence of a presentation or speech-or just artists showing off how much better they can draw than the rest of us. SmallBusiness.com even has a Pinterest board of some #sketchnotes examples.

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I've never heard-or, if I have, I've forgotten-that drawing may help a person's memory. But for a study published recently in The Quarterly Journal of Experimental Psychology, researchers asked study participants to draw or write down different items. The study found that subjects were better able to recall the items when they drew them.

In another experiment, subjects were given a few different tasks to complete. They had to either write down the list of tasks, draw them, visualize them, list attributes of the word or look at a picture of the word in context. Subjects were more likely to remember the words that were drawn.

Findings of these and other similar experiments may indicate that drawing enhances memory relative to writing. Or perhaps they just indicate that people who draw already have good memories and are smarter than the rest of us.

To put these findings into practice, a recent article on NYMag.com suggests drawing your to-do list, rather than writing it. According to the experts, this can help you remember what you have to do and stay focused on those tasks throughout the day.

It may not work for everyone, but take it from a long-time doodler and to-do list writer: It will be more fun and perhaps even more effective than most to-do apps.

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Suggestion for future memory study | Why do some people forget how many drawing instruments they have at the office whenever they walk by the  pen section of an office supply store?

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via: Lifehacker | The drawing effect: Evidence for reliable and robust memory benefits in free recall, The Quarterly Journal of Experimental Psychology | NYMag.com

 

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Illustration: ThinkStock

How Beauty Salons Are Small Town, Small Business Incubators

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Beauty salons: You'll find them in every major city and in every small town. Even really small towns typically have one. But when was the last time you heard a city or regional economic developer refer to salons as important business development resources? Becky McCray, small town and rural small business expert (and owner of multiple businesses), publisher of SmallBizSurvival.com, and a regular contributor to SmallBusiness.com, says that Alex Mantz, the economic development director (and local chamber executive and tourism pro…) in her hometown, Alva, Oklahoma, helped her realize that salons may be one of the most efficient incubators in any town for women-owned small businesses.

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Walk into any beauty salon and you're likely to find that the women who work there are actually independent contractors who rent their booths. There may also be a massage therapist seeing clients in a side room. They're all business owners.

Look around at the displays. In addition to the hair care products offered by the salon owner, you may see scarves, candles and other retail items. These are pop-up temporary businesses, often set up by other potential entrepreneurs testing out the market. Except they don't call themselves entrepreneurs and they don't consider what they're doing to be market research. They view it as a side business.

But with each new business idea that is tried at these beauty salons, another potential small business owner has the opportunity to learn what does and doesn't work. If they can try out an idea with a pop-up display in a salon, they can learn more about what will work with local customers and gain market intelligence.

The woman selling her handmade jewelry this way is also a potential booth vendor at an upcoming crafts fair or festival, a possible future store owner, a local entrepreneur who may find success online with a marketplace like Etsy. And before you know it, this small town woman-owned business has generated extra income for her family.

If you are promoting small business development in a small town-or a big city-treat beauty salons like important business development assets. Visit them. Ask questions about the different businesses represented there. Show them respect as unique and knowledgeable business incubators. Make sure they know about business support and coaching opportunities. Invite them to training events.

And if you are a person with the right product to test, talk with the owner of your favorite salon.

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See Also on SmallBusiness.com | A Barbershop That's Grooming Much More Than Hair

See Also on SmallBusiness.com | The Role of Barbershops in the History of African-American Entrepreneurship

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On The 400th Anniversary of Cervantes' Death, The Top 35 Small Business Quotes From Don Quixote

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As we noted in another post, April 23, 2016 is being observed as the 400th anniversary of William Shakespeare's death. In one of those historic twists of fate too amazing to be considered mere chance, April 22, 2016 - a difference of one day - marks the 400th anniversary of Miguel de Cervantes, widely regarded as the greatest writer in the history of the Spanish language and the world's pre-eminent novelist. (Note: There is debate over the precise days both Shakespeare and Cervantes died.)

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To those who have started and run small businesses with success - and with failure - Cervantes' Don Quixote is not only a classic of western literature, it is the source of an unofficial small business lectionary of sayings and proverbs that capture the essence of the limitless-sky possibilities and impossible dreams that inspire and motivate the daily journey of every small business owner or manager.

While there are many, many more, here are our top 35 English translations of quotations from Cervantes' classic novel Don Quixote, in which the author uses a simple man to say some of the most inspiring words found in all of literature.

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#35 You are a king by your own fireside, as much as any monarch in his throne.

Prologue

#34 Can we ever have too much of a good thing?

Part I Book I Chapter 6

#33 A man must eat a peck of salt with his friend before he knows him.

Part I Book III Chapter 1

#32 There's not the least thing can be said or done, but people will talk and find fault.

Part I Book II Chapter 4

#31 Fair and softly goes far.

Part I Book III Chapter 2

#30 The more thou stir it, the worse it will be.

Part I Book III Chapter 6

#29 Experience, the universal Mother of Sciences.

Part I Book III Chapter 7

#28 Let every man mind his own business.

Part I Book III Chapter 8

#27 To withdraw is not to run away

To withdraw is not to run away, and to stay is no wise action when there is more reason to fear than to hope. 'Tis the part of a wise man to keep himself today for tomorrow, and not venture all his eggs in one basket. And though I am but a clown, or a bumpkin, as you may say, yet I would have you to know I know what is what, and have always taken care of the main chance…

Part I Book III Chapter 9

#26 Think before thou speakest.

Part I Book IV Chapter 3.

#25 A closed mouth catches no flies.

Part I Book III Chapter 11

#24 Let us make hay while the sun shines.

Part I Book III Chapter 11

#22 It is good to live and learn.

Part II Book III Chapter 33

#21 Honesty is the best policy.

Part II Book III Chapter 33

#20 Let us forget and forgive injuries.

Part I Book IV Chapter 3.

#19 A bird in the hand is worth two in the bush.

Part I Book IV Chapter 4.

#18 The pot calls the kettle black.

Part II Book III Chapter 43

#17 When thou art at Rome, do as they do at Rome.

Part II Book III Chapter 54

#16 The proof of the pudding is in the eating.

Part I Book IV Chapter 10

#15 A little in one's own pocket is better than much in another man's purse. Tis good to keep a nest egg.

Part II Book III Chapter 7

#14 Forewarned forearmed.

Part II Book III Chapter 10

#13 Let every man look before he leaps.

Part II Book III Chapter 14

#12 Many count their chickens before they are hatched

Part II Book III Chapter 55

#11 You cannot eat your cake and have your cake

Part II Book III Chapter 43



#10 Many go out for wool, and come home shorn themselves.

Part II Book III Chapter 37

#9 There is a time for some things, and a time for all things; a time for great things, and a time for small things.

Part II Book III Chapter 35

#8 Comparisons are odious.

Part II Book III Chapter 23

#7 All is not gold that glisters.

Part II Book III Chapter 33

#6 Make it thy business to know thyself, which is the most difficult lesson in the world.

Part II Book III Chapter 42

#5 A good name is better than riches.

Part II Book III Chapter 33

#4 An honest man's word is as good as his bond.

Part II Book IV Chapter 34

#3 Diligence is the mother of good fortune, and idleness - its opposite - never brought a man to the goal of any of his best wishes.

Part II Book IV Chapter 37

#2 Tomorrow will be a new day.

Part II Book III Chapter 26

#1 No limits but the sky.

Part I Book III Chapter 3

How to Create Some Private, Quiet Space in an Open Office

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Open office design is a popular trend these days. To cope with ambient noise, workers have invested in headphones with noise reduction technology built in-or earbuds with the volume cranked up. But what about those times when a chat among co-workers is needed (and Slack isn't the answer)? Some clever designers are coming up with ideas to baffle the noise, using techniques first developed for recording studios. Here are just a few examples of how acoustic furniture and other sound abatement approaches are entering the workspace. Note: Most of these examples are not available for sale in the U.S. 

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Elite Furniture Retreat Double Booth

This “Retreat Booth” offers face-to-face collaboration which encourages creative and spontaneous meeting's between colleagues. Privacy can be maintained via the acoustic benefits of the design incorporating a connecting panel with an integrated roof panel.

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Aden chair & sofa

This approach offers an uncomplicated acoustic space. Available as a single seater or sofa with metal sled frame (not shown) or wooden legs (shown).

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The V1 chair by ODESD2

According to the manufacturer, the V1 chair's acoustic atmosphere “allows you to concentrate on your own thoughts and feelings.”

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Whisperwave Ceiling Cloud

This sculptured foam accent product allows you to use cloud computing under the clouds. The idea is that the foam clouds absorb the sound. Sounds angelic.

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BuzziShade Ground Lamp

BuzziShade is a sound-absorbing floor lamp. According to its manufacturer, the lamp creates an intimate space and ensures a pleasant area of light

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Industrial Telephone Hoods

From many different makers (google “acoustic hood for telephones“), these hoods have been in factory-settings for decades. For today's open offices, many hoods no longer have phones mounted - they are places people use with mobile phones.

Small Business Tool Pool | Speed Tape

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Can your duct tape stick to an F/A 18 Hornet fighter jet flying at an airspeed of 500 knots? (Translation: 575 miles per hour). My duct tape sure can't. But I digress.

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I first heard of speed tape (officially called 3M Aluminum Foil Tape 425) in a long reddit thread about the airline industry, where one contributor wrote, “It's a high-grade tape used to cover beads of set but uncured weather sealant (among other things) on the windscreens or cowls of planes, all the while rated and proven to stay put at up to 500 knots airspeed.”

From Wikipedia 

“Speed tape is an aluminized pressure-sensitive tape used to do minor repairs on aircraft and racing cars. It is used as a temporary repair material until a more permanent repair can be carried out. It has an appearance similar to duct tape, for which it is sometimes mistaken, but its adhesive is capable of [adhering to] an airplane fuselage or wing at high speeds, hence the name.”

From 3M (manufacturer) 

“Aluminum Foil Tape 425 [official name of speed tape] is a dead-soft aluminum foil backed tape with a special transparent synthetic acrylic adhesive, making this the best general purpose foil product available. This tape is ideal for masking, sealing, seaming, shielding, chemical stripping, harness wrapping, joining, electroplating, plastic protection, chemical milling, heat shielding, heat reflecting and paint stripping.”

Photo: What 500 knots looks like.

Speed Tape Recommended Uses:

• Aircraft paint stripping masking


• Moisture barrier in “white goods” appliances


• General purpose heat reflector and heat dissipator


• Mechanically holds wires and cooling coils in “white goods” appliances


• Repair tears on truck trailers and aircraft


• General purpose holding, patching, sealing applications-indoors and out

Price

3M will sell you a roll (3″ x 60 yards x 4.6 mil) Price: $101.87 (F/A-18 Hornet Blue Angel fighter jets sold separately).

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Small Business Tool Pool | The Wrist Ruler

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Not since the creation of the paracord Survival Strap has there been such wrist-fashionable utilities as these two versions of bracelet / tape measures costing $10 and $20.

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Wrist Ruler

If you are always finding yourself busy, on-the-go and suddenly need to stop and measure something, the leather Wrist Ruler was made for you (unless you are a vegan or otherwise freak-out when you touch leather). The Wrist Ruler is both fashionable and functional and a guaranteed conversation starter: Just think of it as a leather wristband with engraved inch and centimeter measurements, because that's what it is.  (Price | $19.95).

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Rubber Wrist Ruler

But wait, there's more. You're probably asking, “What if I'm a vegan or otherwise do not want leather touching my skin?” Or, perhaps you think a $19.95 leather strap is a bit pricey. Or maybe, you're an eight year old and would like one while doing arts-and-crafts without worrying about your bracelet or your ruler getting wet? Well, you are in luck. Here's a Rubber Wrist Ruler with engraved inch and centimeter measurements. It's one-size-fits-most and waterproof. (Price | $10).

(via: Lovehandles.com)

What's a Chatbot and Why is There So Much Chatter About Them?

 

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A Chatbot is a computer program designed to simulate conversation with human users, specifically over the internet.

Chatbot is also one of those techie terms you never hear until suddenly, one day, you can't not stop hearing it.

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Wait! Is that all a Chatbot is?

If all a chatbot does is enable people to “simulate talking” with computers, isn't that what H.A.L. did in 2001: A Space Odyssey, a movie that came out in 1968? Does this mean Siri's ability to provide wrong answers when you ask it questions makes it a chatbot?

Why are people talking about chatbots?

First there was Microsoft's 3/23/2016 launch of Tay on Twitter. Tay, a chatbot, probably wouldn't have been such a big deal had she not started providing racist tweets after some Twitter users figured out how to lead Tay astray.

But the biggest chatbot news of the month was Mark Zuckerberg's announcement that Facebook users would soon be able to use a Facebook chatbot interface to simulate conversations with third-party apps. Except Facebook's chatbots will exchange text messages with you-not talk like Siri or Amazon's Alexa or H.A.L. Facebook's chatbots will also use artificial intelligence so that the more you communicate with them, the more they will know what you like to hear.

And that would be great, wouldn't it? Just ask Dave.

 

Why You Should Take Notes by Hand Instead of on a Laptop

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Close your laptop and pick up your pen. Taking notes by hand-rather than typing-makes you smarter, according to research conducted at Princeton, UCLA and other universities.

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Hand-written note-takers have these super powers:

• A longer retention of information


• A better grasp of new ideas


• Information is encoded more deeply in memory


• More organized notes


• With writing fewer words, they better process what they hear

So why are college students typing instead of writing when taking notes in class?

• Most college students today have laptop computers small and light enough to fit in their backpack.


• Today, the primary means of university instruction is the classroom lecture.

According to research, these two factors have led most students to believe that capturing the maximum number of words spoken by a professor is the key to capturing and retaining the information that seems most important. According to research, here are the average speeds at which students can transcribe what a professor is lecturing.

Typing | 33 words per minute

Longhand | 22 words per minute

The upside and downside of typing

Typing is a faster way to transcribe lecture notes.

Typing does have short-term benefits. Tested immediately after class, typists perform slightly better than longhand note takers.

By the next day, keyboard note-takers' information retention starts falling behind.

(via: WSJ.com)

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Photos: Thinkstock

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It's Tax Day: What Are Your Chances of Being Audited? | 2016

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Recently, we published a list of 15 red flags that may influence whether or not the IRS will audit a tax return. You may recall this one:

Running a small business

If you run a cash-intensive business (bars, taxis, hair salons) or are self-employed, the IRS will be more likely to scrutinize your return than they do other types of businesses. The IRS thinks it can get more bang for its audit buck by examining S corporations, partnerships and limited liability companies.

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How much you make reveals your chances of being audited

If you want an even clearer picture of who gets audited, here is a chart from the annual Data Book published by the IRS. It displays how the odds of you being audited depend on your income.

5.26% | No income

.93% | $1K – $29.9K

| .54% | $25k – $49.9K

|.56% | $50k – $74.9K

| .52% | $75K – $99.9K

.65% | $100K – $199.9K

1.75% | $200K – $499.9K

3.62 % | $500k – $999.9K

6.21% | $1M-$4.9M

10.53% | $5M-$9.9M

16.22% | $10M +

Source: IRS Data Book 2014 via USA Today

Sutton's Law and the odds of being audited

As the chart demonstrates, except for those who say they have no income, the chances of someone being audited is directly tied to their income. The more you make, the more likely you'll be audited.

If you are familiar with Sutton's Law, this should come as no surprise. The “law” is named after the bank robber Willie Sutton, who is reputed to have replied to a reporter's question, “Why do you rob banks?” with an answer Sutton denied saying, but became so famous, he used as the title of his memoir*: “Because that's where the money was.”

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*Amazon.com affiliate link

 

Crank Up The Volume: Today is Record Store Day | 2016

Today (4.16.2016) is Record Store Day, an annual event founded in 2007 and held on the third Saturday of April each year to celebrate and support the culture of the independently owned record store. And for some people who have only known recorded music as something one downloads or streams, it's a day to celebrate what used to be the coolest small business in every town - and still is in many places.

Think of today as Small Business Saturday for record stores.

Find out more

• Wikipedia


• Map of participating stores

Seven Last-Minute Tax Filing Tips From the IRS | 2016

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Because the weekend shifts the observance of Emancipation Day (typically 4.16) to Friday (4.15.2016) in Washington, DC, you have until Monday night at midnight, April 18, to file your tax return. And if you live in Maine or Massachusetts, you have until midnight on April 19 to file. (Happy Patriots Day on Monday.) The IRS recommends that you not panic if you haven't done your taxes yet. However we're guessing that panic is the only motivation left that works with people who are waiting until now to start working on their tax returns. Here are some tips from the IRS for procrastinators.

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1 | Don't delay.

Don't wait until Monday night at 11:30 to do your taxes. If you rush to beat the deadline, you may miss out on tax savings or make a mistake. An error may delay your refund and could cause the IRS to send you a letter.

2 | File free

Use IRS Free File.  If you made $62,000 or less, you can use free tax software to do your taxes and e-file. If you made more, you can use Free File Fillable Forms. These are electronic versions of IRS paper forms. Free File will also help with the reporting requirements for the Affordable Care Act.

3 | Use IRS e-file

No matter who does your taxes, you should file them using IRS e-file. It's the safe, easy and accurate way to file your tax return. You're 20 times less likely to make a mistake when you e-file compared to filing a paper return. Tax software catches and corrects common paper filing errors. It also will alert you to tax credits and deductions you may otherwise miss.

4 | Visit IRS.gov

Go online for tax information and resources. The Interactive Tax Assistant, Tax Trails and IRS Tax Map are useful question and answer resources.

5 | File on time.

If you owe taxes but can't pay by the April due date, you should still file on time and pay as much as you can. This will reduce potential penalties and interest charges. If you can't pay all the tax you owe, you may apply for an installment agreement. The easy way to apply is to use the Form 9465, Installment Agreement Request.

6 | File an extension.

If you're not ready to file by April 18 (April 19 for taxpayers in Maine or Massachusetts), you can get an automatic six-month extension. You can e-file your extension request for free using IRS Free File. If you owe tax, you can request your extension when you make a payment with Direct Pay, Electronic Federal Tax Payment System or by debit or credit card and select Form 4868 as the payment type. You may also file using Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. Make sure to e-file or mail the form and pay an estimate of any tax due by the April due date.

7 | File to reconcile Advance Payments of the Premium Tax Credit

You must file a tax return and submit Form 8962 to reconcile advance payments of the premium tax credit with the actual premium tax credit to which you are entitled. You will need Form 1095-A from the Marketplace to complete Form 8962. Filing your return without reconciling your advance payments will delay your refund and may affect future advance credit payments.

(via: IRS.gov)

The Price of a First Class Stamp Just Dropped 4%, So Did the Value of Your Forever Stamps

Last Sunday (4/10/2016), the U.S. Postal Service lowered the price of a first class stamp by 2¢, from 49¢ to 47¢ (4 percent). It's the first drop in price of a first class stamp in more than a century.

And it's the first time that owners of “forever stamps” will be “under water”-they will be holding stamps they purchased for 49¢ as a hedge against a future increase in the cost of postage, but that is now worth only 47¢.*

Why did the USPS drop the price of a first class stamp?

The USPS didn't want to drop the price. However, they were ordered to by the Postal Regulatory Commission (PRC). The PRC described the stamp price reduction as being “a rollback” of the price of the past two years when customers had to pay an “exigent surcharge” implemented to help the Postal Service survive the Great Recession.

Postal Service managers are unhappy, arguing the mandated price reduction will add $2 billion in annual losses. Postal Service managers are already asking Congress to cancel the rollback, which generated $4.6 million for operations.

(The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.)

*This applies to stamps with no denomination printed on them. In 2011, all first-class stamps were converted into Forever stamps, meaning they would be valid first class postage, even if the price of a first class stamp increased. In 2015, the concept of Forever stamps was expanded into all other types of postage: stamped-postcards, additional ounce, non-machinable surcharge, two ounce and three ounce, and these stamps have their intended purpose printed on them instead of a denomination.

Low Oil Prices Continue to be an Economic Positive For Most Small Businesses and Consumers | 2016

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In October 2014, we examined the mixed blessing of declining oil prices for small businesses. As we noted then, for those businesses that are in the ecosystem of oil production and distribution, there is an extreme negative impact. For most small businesses outside of that ecosystem, the impact can be like a tax cut in which billions of dollars are left in the pockets of consumers. It's now 18 months later (April 2016) and the price of oil is still considered “too low” by those who made major investments based on high oil prices. But what about the rest of us? What does continued low oil prices mean for small businesses and consumers in 2016?

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The Mostly Good and Somewhat Bad News

Ryan Ermey of Kiplinger Finance Magazine says whether or not low-priced oil is good for your business still depends on where you live and what business you are in. As we noted in 2014, if your company is a part of the oil production and distribution ecosystem, your tough times will continue. Even if your business is indirectly a part of the oil ecosystem (say, you own a diner in a region of the country where oil is produced), these will continue to be challenging times. For others, however, lower energy costs are similar to a major tax cut.

What to expect if oil prices continue to stay low

You'll continue to pay less for gasoline.

$2.04 | Average retail price of a gallon of regular gasoline (4/11/2016)

$2.40| Average retail price of a gallon of regular gasoline (4/11/2015)

36¢ | Savings per gallon year-over-year

$7.20| Savings per tank full (20 gallons, year-over-year )

Source: American Automobile Association

You'll pay more for car insurance.

Lower prices mean more drivers on the road. More drivers on the road increase the liklihood of accidents. More accidents mean higher insurance premiums, says James Lynch, chief actuary at the Insurance Information Institute.

You may be able to save some on airfare.

Lower fuel costs for airlines should mean lower airfares (but airlines are also trying improve their battered bottom lines). Delta, United, American and Southwest are offering historically low fares on some domestic routes, says George Hobica, founder of AirfareWatchdog.com.

Bottomline: Lower priced oil is a net positive for the economy

“As consumers begin to realize that this drop in gas prices isn't just a one-off, more confident consumers will begin to open their pocketbooks.” says Michael Hanson, an economist at Bank of America Merrill Lynch.

Via: Kiplinger.com

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One-Person Small Businesses Accounted For Majority of Past Decade's Net New Jobs

 

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According to economists Lawrence Katz and Alan Krueger, workers with alternative labor arrangements (ranging from on-demand “Uber” jobs to contract or “contingent” relationships) are probably being heavily under-counted by most economists. Katz, an economist at Harvard, and Krueger, an economist at Princeton, have released a preliminary report related to their recent research that claims “all net employment growth in the U.S. economy since 2005 appears to have occurred in 'alternative work arrangements.'”

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Alternative job growth during the past decade

10.1% | 2005: Share of workers in alternative work arrangements

15.8% | 2015: Share of workers in alternative work arrangements

14.2 million | Alternative jobs in 2005

23.6 million | Alternative jobs in 2015

9.5 million | Growth in alternative jobs between 2005 and 2015

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Definition of an 'alternative job'

The economists define “alternative” as any type of temporary “gig” (on-demand, temporary) or contract work, including the on-demand economy's poster child: Uber drivers. (SmallBusiness.com and the IRS define this category of worker as small businesses of one, sole proprietors or self-employed.)

Re-running the data

The 2005 data used by the economists came from the Bureau of Labor Statistics' (BLS) Alternative Work Supplement (AWS). However, the BLS has not fielded this survey since 2005 due to a lack of funding (the next one is planned for 2017). According to the news website Fusion.com, Katz says that traditional jobs (standard employment arrangements) actually declined by 0.4 million (0.3 percent) from 126.2 million in February 2005 to 125.8 million in November 2015. This led the economists to conclude that all U.S. net employment growth has occurred in nonstandard work arrangements for the last decade.

Why this doesn't surprise us

The Katz-Krueger study is getting extensive press coverage. Most articles express surprise at how much the contingent workforce has grown over the past decade. The media are also surprised that most of this growth came from offline activities instead of online platforms like Uber and Elance.

A good example is the New York Times article With 'Gigs' Instead of Jobs, Workers Bear New Burdens. Key quote:

“If you believe the Silicon Valley sloganeers, we are in a “gig economy,” where work consists of a series of short-term jobs coordinated through a mobile app … But anyone who cares about the future of work in the United States shouldn't focus too narrowly on the novelty of people making extra money using their mobile phones.

“There's a bigger shift underway. That's a key implication of new research that indicates the proportion of American workers who don't have traditional jobs-who instead work as independent contractors, through temporary services or on-call-has soared in the last decade. They account for vastly more American workers than the likes of Uber alone.”

These findings are not the least bit surprising to anyone who has been paying attention to this space. The good news is that the growth of the contingent workforce is finally starting to be broadly accepted.

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Photo: Uber.com

Etsy Launches a Website Service to Help Its Sellers Expand Beyond the Etsy Marketplace

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Etsy, the colossal online crafts marketplace, yesterday (4.5.2016) unveiled “Pattern by Etsy,” a new paid service ($15 per month after a one-month trial) that allows Etsy sellers to create an ecommerce-enabled website in addition to the seller's Etsy marketplace account page. Sellers using the service will be able to automatically sync content and commerce from their marketplace account (to be renamed “Shop Home”) to their website.

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According to Mike Grishaver, Etsy's senior vice president of product, having the ability to manage a “Shop Home” presence on the Etsy marketplace, as well as on a seller's own website, “gives our sellers more control to highlight their brands both on and off the Etsy marketplace and provide them with the tools they need to tell the unique stories of their creative businesses.”

A simple explanation for what this means

Before now: Etsy sellers had an account that included a user page that served as a storefront hosted on a massive website marketplace called Etsy.com.

Now: Etsy sellers now have the option to add an ecommerce-enabled website using a domain name other than Etsy.com, say, “CraftStoreUsedAsExample.com.” (Please be more creative, however.)

Why does Etsy want sellers to set up a website service outside its marketplace?

First reason: Because the sellers want them to.

Second reason: Because, with a couple of clicks on any number of website-hosting companies, the seller can already create one.

But unlike the other options, a Pattern by Etsy website will provide sellers the ability to have a website that is made especially for Etsy sellers. Most important, the website will automagically have content from the seller's “Home Shop.” And it will already have an ecommerce feature built in.

But here's another reason we'd like to suggest. As Etsy has said many times, they are not in the business of managing a marketplace; they are a “Craft Entrepreneurship Ecosystem.” Etsy's stated mission is to help its sellers sell, not help its sellers sell only within the Etsy silo.

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Also on SmallBusiness.com: These previous posts on SmallBusiness.com can help you  understand the Etsy ethos and the ways it helps sellers expand into various markets, both online and off:

• Why Handmade at Amazon Isn't an Etsy Killer


• Sellers View Etsy as a Business, Not a Hobby

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What other small business marketplaces could follow this model?

Since more than half of small businesses don't have a website, this approach would seem to be a no-brainer for any platform hosting huge numbers of merchants, like, say, Ebay. Or how about having a related “domain” website that's tied to one's Kickstarter account?

Or what about every major player in the on-demand economy? As long as the ecommerce engine followed the on-demand economy provider, why not let the information power a website for an Uber driver?

Stay tuned.

Consumers are Fed Up With 'Human-less' Customer Service (And What to do About it)

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Even in the digital age, customer satisfaction hinges on human interaction, according to research by Accenture, the consulting firm. In its 11th annual “Global Consumer Pulse Survey,” consumers in 11 industries and 33 countries share one opinion almost unanimously: Consumers strongly prefer to speak  with humans instead of interacting online or on the phone via digital methods of customer service.

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U.S. consumers are fed up with “human-less” customer services

(Percentage of survey respondents)

83% | U.S. consumers who prefer dealing with human beings

52% | Have switched providers in the past year due to poor customer service

Human interaction is vital to customer satisfaction

77% | Prefer dealing with human beings when seeking advice

45% | Willing to pay more for better customer service

65% | In-store service is the best channel for tailored experiences

Room for improvement in customer services delivery

73% | Expect customer service to be easier and more convenient

61% | Expect customer service to be faster

It didn't have to end this way

$1.6 trillion | Estimated amount of business switched due to poor service

68% | Consumers who will not go back after switching to another brand or source

80% | Switchers who feel the company could have done something to retain them

83% | Of that group, those who said better live/in-person customer service would have influenced their decision

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It's time to balance your digital exuberance with a human touch

To deliver the experiences customers demand, companies need to re-balance their digital exuberance with a human touch. What's needed is a mix of digital and non-digital options that allows customers to engage with providers in multiple, highly satisfying ways. Here are some recommendations from Accenture:

• Put the human and physical elements back into customer services. Rethink how you are investing your customer service budget. Focus on delivering satisfying, integrated customer experiences across all channels.


• Make it easy for customers to easily move from digital to human interactions to get the experiences they want.


• Identify the customer experiences that have the greatest potential downside and use those insights to guide investment strategies.


• Guarantee personal data security so that customers will be more willing to hand over personal information which can be leveraged to deliver better experiences.

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How to Wrap an Earphone Wire So it Won't Get Tangled

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Longtime users of SmallBusiness.com know that our least favorite things are cords, wires and cables. Organizing them has been the topic of several posts. We even have a Pinterest.com/SmallBusiness board dedicated to the topic:  SmallBusiness.com Office Hacks: Office Cord Organizing Pinterest board. Thanks to correspondent Joe Stite, the “world's most popular blogging anesthesiologist” and chief curator and head lifeguard of SmallBusiness.com's Tool Pool, for discovering this cord-organizing trick via The Verge.

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Yeah, yeah, I thought, another technique I can't figure out. But no, this one's the exception that proves the rule. After three practice attempts, I was able to nicely wrap up my headphone cord for the first time ever. Try it, you'll like it.

Tip | Pause the video a lot so you can master each step before going on, otherwise things will quickly degenerate into the usual hot mess of a tangle. Fair warning, that.

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Photo: Google Search

Home Office Tax Deduction Resources From the IRS | 2016

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If you use part of your home for business, you may be able to deduct expenses for the business use of your home. The home office deduction is available for homeowners and renters, and applies to all types of homes. As we always recommend: Use this information for reference but don't make tax-related decisions without first consulting with your trusted financial and tax advisors.

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Simplified Option

For taxable years starting on, or after, January 1, 2013 (filed beginning in 2014), there has been a simpler option for computing the business use of your home. The standard method (below) has some calculation, allocation, and substantiation requirements that are complex and burdensome for small business owners. This simplified option can significantly reduce recordkeeping burden by allowing a qualified taxpayer to multiply a prescribed rate by the allowable square footage of the office in lieu of determining actual expenses.

Regular Method

Taxpayers using the regular method (required for tax years 2012 and prior), instead of the optional method, must determine the actual expenses of their home office. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation. Generally, when using the regular method, deductions for a home office are based on the percentage of your home devoted to business use. So, if you use a whole room or part of a room for conducting your business, you need to figure out the percentage of your home devoted to your business activities.

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Also on SmallBusiness.com | Cool, clever and idea-Inspiring small business and home office workspaces

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Requirements to Claim the Deduction

Regardless of the method chosen, there are two basic requirements for your home to qualify as a deduction:

1. Regular and Exclusive Use

You must regularly use part of your home exclusively for conducting business. For example, if you use an extra room to run your business, you can take a home office deduction for that extra room.

2. Principal Place of Your Business

You must show that you use your home as your principal place of business. If you conduct business at a location outside of your home, but also use your home substantially and regularly to conduct business, you may qualify for a home office deduction. For example, if you have in-person meetings with patients, clients, or customers in your home in the normal course of your business, even though you also carry on business at another location, you can deduct your expenses for the part of your home used exclusively and regularly for business. You can deduct expenses for a separate free-standing structure, such as a studio, garage, or barn, if you use it exclusively and regularly for your business. The structure does not have to be your principal place of business or the only place where you meet patients, clients, or customers.

Generally, deductions for a home office are based on the percentage of your home devoted to business use. So, if you use a whole room or part of a room for conducting your business, you need to figure out the percentage of your home devoted to your business activities.

Additional tests for employee use

If you are an employee and you use a part of your home for business, you may qualify for a deduction for its business use. You must meet the tests discussed above plus:

• Your business use must be for the convenience of your employer, and


• You must not rent any part of your home to your employer and use the rented portion to perform services as an employee for that employer.

If the use of the home office is merely appropriate and helpful, you cannot deduct expenses for the business use of your home.

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For a full explanation of tax deductions for your home office refer to Publication 587, Business Use of Your Home. In this publication you will find:

• Requirements for qualifying to deduct expenses (including special rules for storing inventory or product samples).


• Types of expenses you can deduct.


• How to figure the deduction (including depreciation of your home).


• Special rules for daycare providers.


• Tax implications of selling a home that was used partly for business.


• Records you should keep


• Where to deduct your expenses (including Form 8829, Expenses for Business Use of Your Home, required if you are self-employed and claiming this deduction using the regular method).

The rules in the publication apply to individuals.

Home Office Tax Deduction Resources From the IRS | 2016

---

If you use part of your home for business, you may be able to deduct expenses for the business use of your home. The home office deduction is available for homeowners and renters, and applies to all types of homes. As we always recommend: Use this information for reference but don't make tax-related decisions without first consulting with your trusted financial and tax advisors.

---

Simplified Option

For taxable years starting on, or after, January 1, 2013 (filed beginning in 2014), there has been a simpler option for computing the business use of your home. The standard method (below) has some calculation, allocation, and substantiation requirements that are complex and burdensome for small business owners. This simplified option can significantly reduce recordkeeping burden by allowing a qualified taxpayer to multiply a prescribed rate by the allowable square footage of the office in lieu of determining actual expenses.

Regular Method

Taxpayers using the regular method (required for tax years 2012 and prior), instead of the optional method, must determine the actual expenses of their home office. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation. Generally, when using the regular method, deductions for a home office are based on the percentage of your home devoted to business use. So, if you use a whole room or part of a room for conducting your business, you need to figure out the percentage of your home devoted to your business activities.

---

Also on SmallBusiness.com | Cool, clever and idea-Inspiring small business and home office workspaces

---

Requirements to Claim the Deduction

Regardless of the method chosen, there are two basic requirements for your home to qualify as a deduction:

1. Regular and Exclusive Use

You must regularly use part of your home exclusively for conducting business. For example, if you use an extra room to run your business, you can take a home office deduction for that extra room.

2. Principal Place of Your Business

You must show that you use your home as your principal place of business. If you conduct business at a location outside of your home, but also use your home substantially and regularly to conduct business, you may qualify for a home office deduction. For example, if you have in-person meetings with patients, clients, or customers in your home in the normal course of your business, even though you also carry on business at another location, you can deduct your expenses for the part of your home used exclusively and regularly for business. You can deduct expenses for a separate free-standing structure, such as a studio, garage, or barn, if you use it exclusively and regularly for your business. The structure does not have to be your principal place of business or the only place where you meet patients, clients, or customers.

Generally, deductions for a home office are based on the percentage of your home devoted to business use. So, if you use a whole room or part of a room for conducting your business, you need to figure out the percentage of your home devoted to your business activities.

Additional tests for employee use

If you are an employee and you use a part of your home for business, you may qualify for a deduction for its business use. You must meet the tests discussed above plus:

• Your business use must be for the convenience of your employer, and


• You must not rent any part of your home to your employer and use the rented portion to perform services as an employee for that employer.

If the use of the home office is merely appropriate and helpful, you cannot deduct expenses for the business use of your home.

---

For a full explanation of tax deductions for your home office refer to Publication 587, Business Use of Your Home. In this publication you will find:

• Requirements for qualifying to deduct expenses (including special rules for storing inventory or product samples).


• Types of expenses you can deduct.


• How to figure the deduction (including depreciation of your home).


• Special rules for daycare providers.


• Tax implications of selling a home that was used partly for business.


• Records you should keep


• Where to deduct your expenses (including Form 8829, Expenses for Business Use of Your Home, required if you are self-employed and claiming this deduction using the regular method).

The rules in the publication apply to individuals.