As more consumers look for greener choices in the marketplace, it’s not surprising that marketers are focusing on the environmental benefits of their products. However, green claims, as with any other advertising claim, must be backed up by sound science.

Green advertising claims – whether in the form of product marketing, packaging or promotion – are regulated by the Federal Trade Commission (FTC), which requires that businesses must have reliable evidence to back-up any environmental promises. You can get the details in the FTC’s recently-updated Green Guides (PDF), or check out this brief Summary of the Green Guides for an easy-to-read explanation.

Many of the laws have changed in recent years to reflect advancements in green product development and marketing. So, if your company is keen to market your green products, processes, or practices – here’s an overview of the basics of what you need to know about “green” marketing laws.

1. Avoid Broad Environmental Claims – As a general rule, the FTC advises against making broad, unqualified claims such as “green” and “eco-friendly,” which may be difficult to substantiate. However, if you can qualify these more general claims with specific environmental benefits, then you are OK — as long as those qualifications are clear, prominent and specific.

So, say you want to advertise a beauty product that has been packaged in recycled plastic. It’s not enough to stick a label on the product or run an ad that markets it as “eco-friendly” or “made from recycled materials” – you must state which attribute of the product is eco-friendly (and don’t hide it in the small print or footnotes).

2. Use of Certifications and Seals of Approval – Most consumers simply aren’t in a position to evaluate the evidence behind any green claims, so businesses often use green certifications and seals. If you have a green accreditation, this does not change any of your obligations to prove the truth behind your claims and clearly and prominently identify specific environmental benefits. This is extremely important if the certification or seal doesn’t clearly convey the basis for the accreditation.

Again, you should also steer clear of broad accreditations that suggest environmental claims that can’t be proven. If you have any material connections to the certifying organization – you’ll also need to disclose this. Read the “Certifications and Seals of Approval” section of the FTC’s Green Guide for more details.

3. Be Very Careful in Your Use of Green Terms and Phrases – As green technologies and practices advance, more terms are being used in the marketplace to describe green products, such as “made with renewable materials,” “biodegradable” or “made with recycled materials”.  These may be misinterpreted by the consumer to mean something more than is actually being claimed. In the case of a “made with renewable materials” claim, you can minimize the risk of misinterpretation of the claim (and prosecution by the FTC for deceptive advertising) by clearly identifying the material you’re talking about and explain why it’s renewable. If only part of your product is made with renewable materials, qualify your claim so that you’re not implying that the whole thing is made with renewable materials.

The same holds true for claims like “made with renewable energy.” You can minimize the risk of deception by being specific, for example – “this product was manufactured using power derived from wind /or/ solar energy.” Now, if any element of your product is manufactured with energy from fossil fuels, you are prohibited from using the “made with renewable energy” claim without qualifying it. For example, you might indicate that, “75% of this product was made with energy derived from solar power.” The only exception to this rule is if you buy a renewable energy certificate (RECs to match the energy use). Read the “Made with Renewable Energy” section of the of the FTC’s Green Guide for more details.

The guide also covers use of terms such as “recycled content,” “refillable,” “made with renewable materials,” “non-toxic,” “free-of,” “ozone-friendly,” “recyclable,” “compostable,” and “degradable.” Many of the rules around these terms have recently been updated, for example, if you claim that your product is degradable, you must prove that it will degrade completely within one year. The same goes for “compostable” products – if a product can’t be composted at home within the same time as the materials that it’s composted with, you need to qualify your claim. “Recyclable” claims are also strictly regulated – if recycling facilities aren’t available to at least 60 percent of the consumers or communities where a product is sold, then you need to qualify your recycling claims by stating something like: “This product may not be recyclable in your area.”

More Information

Be sure to check out the Green Guides (or the summarized version here) for further guidance. If you are in any doubt, talk to a green business consultant or lawyer who specializes in consumer protection or marketing and advertising law.

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Tax season is here, and it’s time to rifle through your business expense records and make the most of any legitimate small business tax deductions you can claim to lower your overall taxable income. Unfortunately, many taxpayers who qualify for a variety of deductions—most notably the home office deduction—aren’t claiming them.

To help you claim the deductions you deserve, below are 10 small business tax deductions that may apply to your business. For more information specific to your business, always consult with your tax professional.

10 Small Business Tax Deductions You Shouldn’t Ignore

1. Health Care Tax Credit

If you provide insurance to your employees, under The Affordable Care Act eligible small businesses can claim a tax credit of up to 35%, if you meet the following criteria:

• You have fewer than 25 full-time equivalent employees.
• Your average annual wages paid out are below $50,000.
• You contribute 50% or more toward employee health insurance premiums.

2. Business Use of a Personal Vehicle

If you use your personal car, truck or van for business travel, you can write off the business portion of vehicle usage by either:

• Deducting your actual costs.
• Deducting business mileage based on an IRS-set rate. For the 2012 tax year, the rate was $0.55 per mile for the first half of the year. (The IRS recently released its standard mileage rates for 2013, which show slight increases from the current 2012 rates.)

You can also deduct parking and tolls. Remember to keep good records of all transactions. Make note of your mileage using your odometer or a GPS device, as well as the date of the trip, destination and purpose.

3. Business Travel and Entertainment Expenses

Small business owners may be able to claim most of the costs of doing business on the road. These include the cost of air, train or bus tickets, lodging, taxis, 50 percent of meal and business entertainment costs, dry cleaning and laundry costs, business-related calls and tips.

There are some limits to what you can deduct. For example, if you travel with a spouse or person other than an employee then you can’t deduct their expenses. There are also some restrictions on overseas travel deductions, cruise ship travel and attending conventions.

4. Home Office Deduction

Over half of all U.S. businesses operate out of the home, and many (not all) may be eligible to claim the home office deduction. The caveat here is that you can only claim the deduction (which may include phone bills, Internet fees, insurance, rent and more) if an area of your home is used exclusively and regularly for business use.

Working from your dining room table one day and from the den the next does not constitute exclusive and regular business use of that area. Read more about the home office deduction and look out for a simpler claims process which will make it easier to file for the deduction in 2014.

5. Start-Up Costs

Start a business in 2012? You can claim up to $5,000 of business start-up and $5,000 of organizational costs  incurred before you opened your doors. The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. Any remaining costs must be amortized.

6. Professional Fees and Training Costs

Any fees associated with the following are fully deductible as a cost of doing business:

• Training (classes, seminars, certificates, books etc.)
• Professional organization membership fees.
• Fees for lawyers, tax professionals or consultants (although any work related to future years must be deducted over the life of that service/use).

7. Equipment and Software Purchases

The Section 179 deduction allows you to fully deduct the cost (up to $500,000) of assets purchased in 2012, including computers, furniture, certain business software, vehicles and manufacturing equipment. A new “Bonus Depreciation” provision also allows you to depreciate an additional 50% of the cost of certain property after you’ve taken the Section 179 deduction and in addition to the standard depreciation deduction. IRS.gov offers more information about Section 179.

8. Moving Costs

Did you move in 2012 as a result of your business? If your new workplace is 50 miles further from your home than your previous workplace, you may be able to deduct certain moving costs on your individual 1040 tax return.

9. Hiring Veterans

Did you hire a veteran in 2012? You may be eligible to claim a tax credit. Under the Vow to Hire Heroes Act of 2011, if you hired a veteran who had been unemployed for at least four weeks, you can claim a credit for 40% of the first $6,000 in wages (up to $2,400).

If you hire a veteran who’s been unemployed for at least six months, the credit goes up to 40% of the first $14,000 of wages (up to $5,600).

10. Charitable Donations

Charitable contributions can qualify as tax deductions against your business’ annual tax liability. Cash or other monetary contributions may be tax deductible as long as they are not set aside for use by a specific person. Contributions must also be made during the tax year to be eligible for a deduction, regardless of the accounting method you use.

When you file your claim you’ll need to use Form 1040, Schedule A and itemize each deduction. You can also deduct the fair market value donations of property, including inventory and any costs associated with volunteer work such as the costs for hosting a fundraising event. This guide from the IRS explains more about the charitable giving tax deduction.

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In the face of competition and economic pressures, global supply chains are under more and more pressure to deliver their products at a greater value, on-time and at a lower cost. But if one link in the supply chain is broken, (for example, a delayed payment or late shipment), the consequences to your small business can be problematic.

So what can you do to better manage this process and reduce the downstream strain on your business?

Tips for Managing Your Global Supply Chain

Find Someone with Expertise to Help Oversee Foreign Suppliers

Whether your supplier is in Asia, South America or Europe, small businesses can benefit enormously from the services of an in-country representative. There are many global supply chain management consultants who offer these types of services, which include vetting international suppliers and navigating export regulations, taxes and logistics in that location.

Try to find one who has expertise in that country and who spends a good amount of time there. Although you’ll incur some costs, the payoffs in reduced liabilities, taxes and shipping will be well worth it.

A licensed customs broker can also help navigate laws and regulations and help you prepare the documents needed to import goods, as well as facilitate communication between the importer and the U.S. government. You can search for certified customs brokers at the National Customs Brokers and Forwarders Association of America.

Explain Your Buying Patterns and Schedules

Be sure to set clear expectations in regards to your anticipated annual buying scale and schedule. To do this, you’ll need a good handle on your sales forecasting. If you are sourcing goods overseas, shipping those goods will take time, so you need to have a good picture of current demands for your inventory and how these are forecasted to shift in the future.

Also, be sure to ask your supplier for regular updates on their inventory data.

Don’t Rely on Just One Supplier

When it comes to effective supply chain and inventory management, redundancy is everything. Have a back-up supplier (one is good—you don’t want to manage too many suppliers).

Not only will they prove invaluable in the event of production or logistical issues, they can also give you some competitive leverage and help ensure you maintain the best cost base across your suppliers.

Build Goodwill

Building good relationships with your suppliers can lead to mutual benefits such as better terms at the negotiation table and improved production and delivery schedules. Try to treat your suppliers as partners, and look for ways that encourage them to view you in the same light. You can do this by paying them on time, cutting some slack on one-off mistakes and being flexible.

For example, are there things you can do to help them cut costs or better fulfill your order such as being flexible about certain delivery schedules, order volume or ordering alternative product lines?

Don’t forget communication. If you are able, try to meet directly with your suppliers. Get to know and respect their cultural and business backgrounds and train your entire team to be aware of and sensitive to any differences should they arise.

Save Costs and Reduce Risk by Sourcing “Made in the USA” Products

If you do find that global supply chains are simply too risky for your business or you find that you can’t make the minimum orders for importing inventory or goods, consider options for sourcing more from domestic suppliers.

Turnaround time from overseas factories can be substantially slower than domestic suppliers. Sourcing domestic goods can help you meet demand more quickly and react on the fly to market demands.

For many small business owners, it’s a common truth—investing in a domestic supply chain rather than trying to cut costs from the onset by sourcing overseas can save money in the long run.

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Why? Industry estimates suggest that $250 billion is lost by businesses each year due to infringement of intellectual property (IP) rights in international markets.

While copyright laws can provide protection in foreign markets, patents and trademark protection are often a matter of geography. Even if your invention, products and logo are protected under U.S. law, they aren’t automatically afforded protection overseas. You’ll need to register them in those international markets where you choose to expand your business.

IP law can be confusing at the best of times, but here’s what you need to know about protecting your intellectual property rights in these foreign markets, along with resources and tools that can help you.

Determine If You Need to File for IP Protection Overseas

Filing for protection may not be appropriate for every business. The circumstances for determining what type of IP protection is best for your business may be complicated and will differ for each individual business. Furthermore, international protection can be costly. Some issues to consider when making this decision are:

• Will I be conducting business outside the U.S.?
• Do I think I will ever export my product overseas?
• Do I think I will ever manufacture my product overseas?
• Can I afford international IP protection? If so, in what markets would my product most likely be commercially sold?
• What forms of IP are available to me?
• What is the likelihood of my product being copied abroad?

Factors to Consider When Planning Your Overseas IP Protection Strategy

Many small businesses find it challenging to protect their IP rights abroad and are unaware of the processes to obtain and enforce their rights in foreign markets. Some basic, often low-cost steps small companies should consider include:

• Work with an attorney or legal counsel to develop an overall business IP rights protection strategy and include it as part of your exporting or global business plan.
• Develop detailed IP language for licensing and subcontracting contracts and seek out references for trustworthy manufacturers and distributors.
• Conduct due diligence of potential foreign partners. This market research and due diligence guide on Export.gov can help.
• Record your U.S. registered trademarks and copyrights with customs and border protection (for a fee).
• Secure and register patents, trademarks, and copyrights in key foreign markets.

How to Register your Trademark, Patent or Copyright Abroad

So how do you register your IP abroad?

If you plan on selling, distributing or sourcing your products abroad, you should consider registering or filing with each country’s IP authorities. However, if you are seeking protection in many countries, you can take advantage of The Patent Cooperation Treaty (PCT), which has streamlined the process of filing patents in multiple countries. You can now file one patent application with the U.S. Patent and Trademark Office (USPTO) and simultaneously seek protection in up to 144 countries.

Likewise, if you want to get trademark protection in multiple countries, under the Madrid Protocol you can file for trademark registration in multiple countries. By filing one trademark registration application with USPTO, U.S. applicants can concurrently seek protection in up to 84 countries.

In addition, the U.S. Department of Commerce has worked with the U.S. embassies in a number of countries to develop “IPR toolkits” which provide a wealth of detailed information on how to protect and enforce your IP rights in those specific markets.

When it comes to copyright protection, although most countries do not require copyright registration in order to enjoy copyright protection, registration can offer several benefits, such as proof of ownership. The United States has copyright relations with most countries throughout the world, and as a result of these agreements, the copyrights of our respective citizens and businesses are honored.

Take Advantage of Government Tools and Resources

While you may be the first line of defense, the U.S. Department of Commerce, via the Stopfakes.gov website, does offer small businesses numerous tools and resources to educate themselves about their global IP rights and the process of registering for IP protection worldwide:

1. Online Training: Check out this training module to learn about evaluating what IP protection your business needs as well as the process of registering and protecting your IP rights.
2. IP Information for Business Owners: Join discussion boards and access other tools and resources (such as this China IP Rights Webinar Series on how to protect your business against online theft) that help businesses protect their IP at home and abroad.
3. Country Toolkits:  Country IP rights toolkits contain detailed information on protecting and enforcing IPR in specific markets. You will also find contact information for local IPR offices abroad and U.S. Government officials available to assist you.
4. Filing a Complaint: Think your IP rights have been violated? You can file a complaint. If your small business is presented with an issue overseas and is struggling in a particular market due to trademark or copyright infringement, contact the U.S. Department of Commerce’s Office of Intellectual Property Rights for assistance.

Have Questions?

Check out these FAQs for business owners on Stopfakes.gov.

Copyright Protection Photo via Shutterstock

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Senior entrepreneurs have many advantages. Starting a business later in life brings with it a wealth of business experience, aptitude for what it takes to compete and succeed and self-awareness that youth doesn’t always possess.

But with the average cost of starting a business hovering around the $30,000 mark, how can seniors finance their new ventures? Should you tap into your retirement savings, borrow against your 401k or apply for a loan?

Here are some considerations and options to bear in mind as you set about financing your new business venture:

Pursuing Your Dream of Self-Employment Needn’t Cost Much

Don’t be put off by the average cost of starting a business mentioned above; not all small businesses need huge amounts of financing to get off the ground. Home-based businesses can get started for around $1,000, which can be funded with a credit card. Home-based franchises are another option, and costs as low as $2,000 to buy into some.

Lean business practices, such as buying surplus and using independent contractors instead of hiring employees, can also help keep your costs low. If your investments aren’t going to help you generate revenue, don’t spend the cash!

Consider a Government-Backed Business Loan

Many seniors are wary of seeking out business loans, often concluding that lenders won’t finance businesses that get started later in life. This is where government-backed business loans can help. With lower fees and a guarantee to banks and lenders that a portion of the loan will be repaid if the business owner defaults on the loan, these loan programs encourage the lender to take a greater risk than it would have otherwise.

Government loans support billions in lending to small business owners, so talk to your local bank or financial institution about government loan programs they may offer.

Borrowing Against or Tapping into Your Retirement Savings – The Right Way

Should you tap into your retirement savings account to finance your business? Entrepreneurs are risk-takers, and even though the risks are high, using your own retirement money can give you an increased degree of flexibility and control over your business investment decisions than dealing with third-party sources of capital.

Each situation is different, so make sure you seek advice before you make a decision. Here are three options for using your retirement plan to fund your business:

1. Borrow Against Your 401(k) – Instead of withdrawing funds from your 401(k), you could borrow from your retirement account in the form of a personal loan. You can typically borrow up to 50 percent of your funds or $50,000, whichever is less. Repayment plans require that you repay your entire loan to your 401(k) within five years on a quarterly payment schedule. You’ll also need to pay interest on the loan, usually around 1 percent, which goes back into your own 401(k). Before you borrow against your 401(k), you will need to do a few things:

• Incorporate your business to reduce your personal liability.
• Buy all of the stock in your business with the loan from your plan.
• Roll your remaining 401(k) assets into a new plan managed by your incorporated business.

Be sure to talk to your accountant and your existing 401(k) administrator and get the right professional advice before pursuing on this option.

2. Tap into Your 401(k)/IRA – Tax law does allow you to tap into your retirement savings account without penalty, if you follow the rules—which can get complicated. To do this, you will need to structure your business as a C Corporation. This entity will then issue all of its stock and transfer it to a new 401(k) profit-sharing plan in exchange for the cash in the plan. Consult a tax attorney or accountant to handle incorporating and setting up the new retirement plan.

3. Withdraw Directly from Your 401(k) – This should be your last option. Anything you withdraw is subject to regular income taxes and could draw a hefty tax penalty, depending on your age (10 percent for those 59½ years old or younger).

Get Advice

While financial intuitions and your retirement plan administrator can help steer you through some of the options discussed above, it’s also worth getting objective advice from small business assistance resources in your community.

A good place to start is to team up with a business mentor from SCORE, a nationwide nonprofit association dedicated to educating entrepreneurs and helping small businesses start, grow and succeed. Their services are free.

Local Small Business Development Centers and Women’s Business Centers also provide counseling on available financing options.

Senior Businessman Photo via Shutterstock

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However, women business owners still face several challenges when it comes to growing their businesses and accessing capital.

According to the latest data:

• Only 3 percent of all women-owned firms have revenues of $1 million or more compared with 6% of men-owned firms. (Center for Women’s Business Research)
• Women-owned firms with revenues of $1 million or more are more likely to access commercial loans or lines of credit than other women-owned firms (70% vs. 28%). Despite the success of larger women-owned businesses, they continue to lag behind their male counterparts in using commercial credit (56% of women vs. 71% of men). Larger, faster-growing women-owned firms are more likely than other firms owned by women to use credit. (Women Impacting Public Policy – WIPP)
• Of the WIPP women business members who sought outside funding in 2011, only 45% of businesses were successful after two attempts.

Access to growth capital is a critical factor in growing a successful business. However, as the statistics show, even when women business owners seek financing, they don’t always get it. Critical factors to ensuring that women get the funding they need often comes down to awareness and education:

• What funding sources are available?
• What is the process of securing capital?
• Who can help?

While there aren’t any specific loan programs for women business owners, there are a number of government-backed and business loans that women business owners can take advantage of and resources in your community to help you secure them. Here are two worth getting to know:

Women’s Business Centers

With a nationwide network of more than 110 offices, Women’s Business Centers (WBCs) operate with the mission to “level the playing field” for women entrepreneurs, who still face unique obstacles in the world of business.

Specifically, they can help guide women through the process of finding and applying for loans, guidance on how to bid on government contracts and offer regular training seminars on financing topics. Some also provide access to alternative capital financing programs.

FACT: Government data proves that businesses that receive assistance from WBCs have significantly better survival rates than those that don’t receive similar support.

Women Accessing Capital Program

Another resource for women business owners is the Women Impacting Public Policy’s Women Accessing Capital program. The national program is designed to educate women business owners on all steps of accessing capital, from understanding and evaluating funding sources, creating a strong application for capital, to maintaining and managing growth.

Specifically, program participants get information that can be immediately applied to advancing their businesses. Look out for events, webinars and courses that provide the necessary tools to competitively seek the appropriate type of funding, obtain much needed cash, and then manage a financed firm, to help small business owners take their businesses to the next level.

Check out the events calendar on the main WIPP site for upcoming activities.

Hand and Woman Photo via Shutterstock

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Despite this growth, women business owners continue to face very particular challenges such as gender  and racial discrimination from vendors, investors, and even employees while juggling the demands of maintaining a work / life balance.

Access to capital is also an issue, according to a member survey conducted by the National Association of Women Business Owners (NAWBO) survey. It revealed that women rely on personal savings as their main source of business financing and often don’t apply for business credit because they believe they will be turned down.

Likewise, 50 percent of African American women business owners have encountered obstacles or difficulties when trying to obtain business financing.

Being your own boss doesn’t mean you have to literally go it alone, and for women business owners, there are a wealth of assistance and training resources across that can help. Here are five free and membership-based resources that women business owners can tap into:

1. Women’s Business Centers

Located across the U.S., Women’s Business Centers (WBCs) provide women entrepreneurs with in-person assistance and business counseling programs that can help them start and grow successful businesses. Each center is tailored to the needs of the specific community and offer guidance and training on a variety of topics including:

• Preparing for business ownership
• Business planning
• Business management
• Marketing
• How to navigate the business loan process
• Opportunities for selling to the government

WBCs can specifically benefit women who are economically or socially disadvantaged and wouldn’t otherwise have access to comprehensive training and counseling offered in many languages.

2. Mentoring and Counseling Services from SCORE

With a network of over 13,000 volunteers (all of whom have business management and ownership experience), SCORE provides free and confidential counseling, mentoring, and advice to startups and small business owners nationwide. SCORE’s volunteers have business experience across 62 industries. SCORE also offers low cost seminars at its local chapters and online training

3. National Association of Women Business Owners

NAWBO is a membership organization that provides resources (conferences, training, regional chapters) and networking opportunities for women in business.

4. National Association for Female Executives

As one of the largest associations for women business professionals, NAFE has a robust website full of resources, blogs and articles, as well as discounts on business equipment and services.

5. Women Impacting Public Policy 

If you are passionate about the success of women in business, WIPP might be the organization for you. This nonpartisan public policy entity advocates for and on behalf of women-owned businesses in legislative and policy matters. In the above image, taken during WIPP’s Give Me 5 Advanced Procurement Workshop, organizers Lourdes Martin Rosa, Karen-Michelle Mirko, and Gloria Larkin stand for a photo.

WIPP also offers a wealth of training and knowledge on everything from exporting and gaining access to capital.

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There are many aspects to “business registration” – including incorporation, registering with tax authorities, registering a trade name and so on. However, not all businesses need to complete all these steps.

Here’s what you need to know:

Registering a “Doing Business As” Name

If you are starting out in business, or even if you are already established and incorporated and you want to name your business something other than your given name, you’ll need to register for a “Doing Business As” name, also known as a DBA, trade name, or assumed name.

When you form a business, its legal name always defaults to the name of the person or entity that owns the business, unless you choose to rename it and register it as a DBA name.

For example, if Peter Smith sets up a landscaping business and rather than operate under his own name, he wants to call it “Smith’s Landscaping Solutions,” the name is considered an assumed name and will need to be registered with the appropriate local authorities.

If you’re not sure whether you need to register a DBA, check with your city or county government office. This will also be the place where you’ll apply for registration. Not all states require you to register a DBA, but as a general rule, a DBA is needed in the following scenarios:

• Sole Proprietors or Partnerships: If you start a business under anything other than your real name, you’ll need to register a DBA.
• Existing Corporations or LLCs: If your business is already set up and you are incorporated or an LLC but want to change your business name, you’ll need to register it as a DBA.

The other thing to note is that a DBA registration does not provide the benefits of trademark protection. For that you’ll need to apply for a trademark with the U.S. Patent and Trademark Office.

Incorporation

Incorporation is another aspect of business registration that business owners need to consider.  Incorporation is a broad term that encompasses the variety of options you have when it comes to legally structuring your business – whether it’s as a limited liability corporation, an “S” or “C” corporation, a partnership or a cooperative.

Incorporation is not a legal requirement. In fact, over 70 percent of U.S. businesses are owned by sole proprietors and operate successfully without incorporating.

You should consult a lawyer or legal expert to help you determine the pros and cons of incorporation for your business and how to register.

Obtaining Licenses and Permits

Registering for the right licenses and permits is a must for all businesses; even home-based business owners need a permit to operate legally. Contact your local government to understand the requirements in your town.

Register with the IRS and Tax Authorities

Property tax, sales tax, employment tax, state and federal income tax are just a few areas of taxation that require business owners to apply for the right permits and IDs and register with the right tax authorities.

The main considerations are as follows:

• Get a Federal Tax ID – If you have employees or are structured as a partnership, corporation or other types of organization, you’ll need to get an Employer Identification Number (EIN) from the IRS. Consider it the business equivalent of a social security number. You can apply for an EIN from the IRS online.
• Get State Tax IDs and Permits – You should also contact your state and local government to find out whether you need a sales tax permit (if you sell retail)and to understand your obligations for property, income and employment taxes.

 What About Certifying Your Business as “Small?”

If you own a small business, perhaps you’ve heard about small business certification. But do you actually need to certify your business as small?

Most businesses don’t need to do this. However, if you are interested in selling to the U.S. government then yes, you will need to. Why? The government sets aside contracts for small businesses. To qualify for these contracts, you must obtain certification that you are indeed a small business according to SBA sizing standards.

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You can purchase goods from larger retailers, buy or consume food from chain stores and restaurants, or patronize local small businesses. Very often, you have the luxury of choosing any and all of these. Take, for example, the pet store market. Many towns now feature large national chains at one end of town and smaller, independently owned pet stores at the other.

With so much choice, commoditization and budget-driven buying behavior, how can this small business owner stand out? For many consumers, even in a budget-conscious economy, the answer lies in the customer experience.

Small businesses are in a unique position to create valuable customer experiences. Their products and services are often niche and business operations are agile and unconstrained by big business rules and processes. When was the last time you called a small business and got put through to an automated call center?

These seemingly small things come together to create a hugely competitive value proposition.

Here are some things you can do to focus your sales, marketing and operational efforts to create a unique customer experience and capitalize on your small business value:

1. Understand Your Differentiators

To deliver a unique and memorable customer experience, it is key to understand what differentiates you from your competition and to frame your marketing around these differentiators.  Even if you’re selling a service in a highly competitive space, there is always something that should differentiate your business.

Take, for example, the saturated home painting business. How can you differentiate yourself from the other contractors in your community? Yes, price is important, but what else have you got to offer? Do you supervise all projects? Can you guarantee a start and finish date? Do you have customer testimonials that explain how you’ve gone above and beyond to help customers? Your value-add is starting to emerge – and this can differentiate you.

Talk to your employees – what are they hearing from customers about why they do business with you? Don’t be afraid to solicit feedback from your customers too – if anyone knows what your differentiators are, it’s your customers!

Freelancers and independent contractors can also use differentiators in this way – think about ways you can make yourself indispensable to your client’s team and critical to their success.

Above all, be an advocate for your differentiators in  everything you do.

2. Be True to Your Values

Your core business values drive such things as your work ethic, your interaction with and commitment to your customers and employees, and, of course, your dedication to delivering fine products and services.

These values are important because they embody how you do business and what your customer comes to expect of you.

3. Be Your Own Brand Advocate

How you advocate on behalf of your business is a critical part of being a successful small business owner. Your brand isn’t just your logo or store frontage, it represents how you fold your differentiators and values into everything you do – how you deliver your products and services, how you conduct operations, your relationships with suppliers, what community marketing efforts you take part in, etc. Don’t ignore all these elements that come into play to create your customer experience.

4. Don’t Forget Your Employees

It’s not enough that you advocate for your business, it helps if your employees are equally invested and actively extending and reinforcing your brand message and core values. Every time anyone in your business communicates with a prospect or customer, it counts. Conduct regular training sessions, appoint a trainer or have new employees shadow you.

Set employee performance goals that align with your business objectives and values. For example, if one of your business differentiators is reliability and agility, think of goals that reward individuals who are always one step ahead of customer expectations or deliverables.

6. Evangelize!

Last but not least, be sure to roll all of the above into your marketing messages. Develop customer testimonials, craft succinct statements that explain not just who you are but why you’re different and what customers can expect from you.

How are you creating a unique experience for your customers?

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To help simplify the process, here’s a checklist of the 10 things you’ll need to do once the right candidate has accepted your job offer:

1. Apply for an Employee Identification Number

Many businesses operate without an Employer Identification Number (or EIN), but if you hire employees, you’re going to need one. Think of it as the social security number equivalent for employers. An EIN is used to report the taxes you withhold on behalf of employees. You can apply for an EIN online from the IRS.

2. Set Up Withholding Taxes

Either on or before the date of employment, you’ll need to give your employee a copy of IRS Form W-4. Have your employee complete it and hand it back to you so that you can withhold the correct federal income tax from their pay. To help you figure out what you should be withholding, refer to the IRS’ Employer’s Tax Guide (PDF document also known as “Circular E”). If state income tax applies in your state, you’ll also need your employee to complete a state withholding form or certificate. Most states do have income tax, although some don’t, including Texas, Alaska and Nevada. The IRS has links to state taxation agencies.

3. Verify That Your Employee is Eligible to Work in the U.S.

To ensure your workforce is legal, you are required to verify their legal right to work in the United States within three days of the hire date. Do this by examining acceptable forms of ID and completing the Employment Eligibility Verification Form (I-9), and then verify the data on the form with  the U.S. Citizenship and Immigration Services’ E-Verify online tool. You don’t need to file the form; just keep it on file for three years after the hire date, and one year after a termination date.

4. Register With Your State’s New Hire Reporting Program

Within 20 days of the hire date, you must report all new hires to a state directory. You’ll find links to more information about how to report new hires on your state’s government website.

5. Obtain Workers’ Compensation Insurance

Any business with employees may be required to carry worker’s compensation insurance. Check with your state, because some require it if you have only one employee while others make it a requirement if you have four or more employees. The insurance is available through commercial carriers, on a self-insured basis, or through your state’s program and is considered a cost of doing business.

6. Register for Unemployment Insurance Tax

Again, something to check with your state; some require that you pay unemployment insurance tax and some don’t.

7. Check Whether You Need to Obtain Disability Insurance

Again, this is state-dependent.  Some states require employers to provide partial wage replacement insurance to eligible employees for non-work related sickness or injury.

8. Display Workplace Posters

Check with the Department of Labor’s “Poster Advisor” online tool to see if labor laws require that you display certain posters that explain employee rights, etc.

9. Filing Taxes as an Employer

It’s a good idea to talk to your accountant or tax advisor about your new tax obligations. Typically, you’ll need to report income tax withholding, social security, and Medicare taxes each quarter on the IRS Form 941. If you paid wages of $1,500 or more in any quarter or had an employee on the payroll for any 20 weeks of the year, you’ll also need to file an Employer’s Annual Federal Unemployment (FUTA) return.

To see what applies to you, read the IRS Employer’s Tax Guide (PDF).

10. Be a Responsible Employer for the Long Term

Once your employee is on board, make sure you maintain good employee records, pay close attention to workplace health and safety laws, and understand what benefits you must establish by law. Each of these links points to useful government guides and tools that can help you stay compliant.

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