Finance expert Mike Periu on determining whether it is time to quit or keep going. According to Harvard Business School Professor Rosabeth Moss Kanter "everything can look like a failure in the middle." As a small-business owner it can be difficult to gauge whether you are just going through a rough patch and need to persevere, or if there is a fundamental flaw with your business and you need to shut it down and move on to something better. Either case will feel the same "in the middle" and you … [Read more...]
Use “Financial Bucket” to Make Your Retirement Money Last
Finance expert Mike Periu on the "financial bucket" concept for retirement planning. October 26, 2012 A successful investment portfolio needs to include a combination of investment types with different risk/reward profiles. But how do you translate that into specific decisions that will build the investment portfolio you need to enjoy a good retirement? Many people are turning to the "financial bucket" concept. Each bucket represents a different phase of your retirement. The first bucket … [Read more...]
Cities and States Cutting Taxes to Boost Growth
OPEN's finance expert Mike Periu on cities and States Cutting Taxes, offer incentives and other business perks. Cities and States Cutting Taxes to Boost Growth As major cities across the country feel the squeeze of rising costs and lower tax revenues, some have decided that the best way to improve their financial situation is to cut taxes and offer incentives to businesses in a bid to have them setup shop in their city. Los Angeles offers a tax holiday on the gross receipts tax which can a … [Read more...]
A Tax Break in the Affordable Care Act
OPEN's finance expert Mike Periu shows you a Obamacare tax break. The Affordable Care Act—also known as "Obamacare"—carries a provision that allows qualifying small businesses to take up to a $50,000 tax credit to offset the cost of health insurance premiums. According to the Government Accountability Office (GAO) approximately 4 million small businesses qualify for the credit but only 170,400 have requested it. Part of the problem is the complexity of calculating the credit properly, … [Read more...]
Are We on the Brink of a Global Recession?
OPEN's finance expert Mike Periu on an unsettling new report on the economy Are We on the Brink of a Global Recession? With so much economic data being published every week, it can be difficult to see through the noise and identify trends that can help us determine what to expect in the near future. Chugging through the data, there are a number of troubling signs that point to high probability of a recession starting next year. In the U.S., the manufacturing sector has already stopped … [Read more...]
New Tool to Stop Cyberattacks
OPEN's finance expert, Mike Periu, on a new cybersecurity planning tool to Stop Cyberattacks. During the first six months of 2012, over one-third of all cyber-attacks were targeted at small businesses. This trend is expected to increase as more hackers realize that small companies are easier targets for theft compared with larger companies that are spending more on cybersecurity. To help deal with this threat, the Federal Communications Commission (FCC) has launched an updated version of the … [Read more...]
Use an Employee Stock Ownership Plan (esop)
Use an ESOP to Blunt the Fiscal Cliff Tax Increases OPEN's finance expert Mike Periu on Employee Stock Ownership Plan (esop) to Blunt the Fiscal Cliff Tax Increases. Starting in January, capital gains taxes on investments held more than a year will increase to 20 percent from 15 percent. An additional 3.8 percent tax on unearned income also goes into effect at the start of the year. Business owners who want to take equity out of their companies or that have been unable to sell their businesses … [Read more...]
Is Your Banker Discriminating Against You?
Lending discrimination isn't limited to consumer loans. Here's how to protect yourself. Wells Fargo, one of the largest banks in the country and the leading originator of mortgages to consumers, recently reached a settlement agreement with the Department of Justice over accusations of lending discrimination. The settlement requires the bank to pay a whopping $175 million while avoiding any admission of guilt. The DOJ was investigating the bank for allegedly steering well-qualified mortgage … [Read more...]
Loan Covenants: What Small Business Owners Need to Know
Small business loan Covenants come with conditions that are in place to protect both you and the bank's best interest. The terms of a business loan or line of credit are very different than those of personal loans. Many small businesses begin with a personal or business credit card to help manage their cash flow. But if things go well then a $25,000 or even a $50,000 card limit won’t be enough to give you the flexibility you need. When your business needs a $100,000 or a $1 million line of … [Read more...]
Should You Fund Your Startup With Convertible Debt?
Should your business offer its investors debt or equity in exchange for capital? The answer may be both. There are many ways for a nascent small business to acquire the money it needs to start operations and expand. By now, many owners realize that the traditional bank loan is the most difficult and least advantageous source of capital for many small businesses. They instead turn to venture capital firms or angel investors. When you finally find the right funding partner and shake hands on the … [Read more...]