What NYC’s New Freelance Law Could Mean for Every Small Businesses

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Assigning certain tasks to freelancers can ease some of the pressures off a busy small business owner juggling multiple responsibilities. An estimated 55 million Americans currently work in a freelance capacity, according to the Freelancers Union. As a matter of fact, the ranks continue to swell.

In New York City, the recently adopted Freelance Isn’t Free Act has put certain new protections in place for freelancers. If you rely on freelancers to help with things like marketing, web design or anything in between, here are the most essential things you need to know about the Act and how it stands to impact small business owners.

Key Provisions of the Act

The Freelance Isn’t Free Act ensures working freelancers in NYC receive payment for their services. The Act, which is the first of its kind, gives freelancers in the Big Apple enhanced legal protections beyond current labor laws. Specifically, the new law outlines the rules governing relationships between freelancers and the businesses they work with, including the following rights:

  • A freelancer can request a written contract.
  • To receive payment in a timely manner and in full for services rendered.
  • To be free of retaliation for requesting payment.
  • The imposition of monetary penalties against businesses violating these rights.

 

Additionally, any contract established between a freelancer and a small business owner must include:

  • Name and address information for both parties.
  • A detailed list of the services the freelancer is providing and their value.
  • Amount a freelancer will receive and how payment will be made.
  • The time frame in which the freelancer will receive payment.

 

The Act curbs payment abuses among businesses using freelance workers. According to the Freelancer’s Union, 70 percent of freelancers have dealt with nonpayment from a client. In fact, the average loss of income totaling $6,000.

Why Small Business Owners Should Take Notice

Is there reason to worry about the Freelance Isn’t Free Act if your small business is based outside of NYC? The law is active in a single city at the moment. However, there’s nothing to prevent the movement from catching on in other locations. As a result, small business owners could potentially face stiff penalties for nonpayment.

In New York, the Act fines repeat offenders up to $25,000. That could be damaging for a small business that utilizes freelancers on a regular basis. More so if it is perhaps struggling to pay on time because of an uneven cash flow. Then the prospect of receiving such a large fine is enough for some small business owners to avoid contracting with freelancers altogether.

On the other hand, the alternative scenario is to perform the tasks normally handed over to a freelancer yourself, assign them to an existing staff member or hire someone new. Unfortunately, none of these is a perfect solution. Doing it yourself could save you the expense of paying an employee overtime to handle the extra workload or hiring someone new. The tradeoff, however, is that any savings you may realize comes at the cost of your own time.

While it remains to be seen whether other cities will follow suit and adopt measures to protect freelancers, the possibility is not dismissed. In the meantime, it may be a good time to review your current contract terms if you routinely hire freelancers for short- or long-term projects. If the guidelines are loose, making adjustments using the Freelance Isn’t Free Act as a compass could help you avoid problems down the road if freelancer protection laws become a reality in your small business’s home turf.

 

5 Ways to Use Employee Appreciation Day

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How do you celebrate Employee Appreciation Day?

Employee Appreciation Day — which takes place in one week on Friday, March 3 — can be like Valentine’s Day for small businesses. Flowers and candies are nice, but the best gifts are the ones that make a powerful statement.

Consider how these companies use Employee Appreciation Day to express what employees mean to them and underscore key values and cultures of their company:

Emphasize Teamwork

Baudville, a company that sells gifts and employee recognition awards, held a Winter Olympic Games. Employees formed teams that competed in six different events for the honor of receiving a gold, silver, or bronze medal (and prizes). It was the perfect way to forge camaraderie and stress the importance of working together in a coordinated way. If you want some ideas for putting together your own Olympics, Baudville provides a free Guide to the Office Games.

Encourage Healthy Habits

Logikcull, a software startup, gave its hard-working employees a Fitbit Charge, a health monitoring device. As CEO Andy Wilson told Inc. Magazine: “Startups are really friggin’ hard. They don’t succeed unless they have good people helping build the startup into a thriving company. A weekend here, a late night there. It adds up. And it can be stressful, resulting in poor health. Now, gadgets won’t solve your poor health, but they do help remind you to get up and move around.” The Fitbits also reminded employees that the company cared about their well-being.

Listen to What They Want

Wiredrive.com, another technology company, used Employee Appreciation Day to provide employees with standing desks. It is something a number of workers had been requesting. But companies don’t need to purchase expensive equipment to show that they listen to workers. Employee Recognition Day could also be the opportunity to implement flex hours or other programs to enhance work-life balance — things that can make a big impact without a huge price tag.

Do Good Together

The ability to make a meaningful contribution is important to many workers, and is especially prized by Millennial workers. Taking that note, companies in Milwaukee used Employee Appreciation Day as a chance to let employees take part in a one-mile walk that supported the American Cancer Society. Showing you care for employees by giving them time to show they care for others makes a powerful statement about your company’s culture and values.

Give Them Your Ear

Sure, it’s fun to rent out a venue and have a huge company party with all the bells and whistles. But if you’re on a tight budget, you can show your appreciation in a less costly, but more meaningful way.

Recognition Professionals International, a professional association, suggests you schedule a lunch date with employees, letting them pick the location, just to get to know them better. Ask about their hopes and dreams, rather than what they’re working on at the moment. You could also send them a hand written note that expresses your appreciation for the work they’ve done. Cite specific accomplishments to show that you are paying attention. If you want to really make an impact, frame the letter.

According to the Harvard Business Review, seven out of 10 employees who report they’ve received some form of appreciation from their supervisors say they’re happy with their jobs. Without that recognition, just 39% say they’re satisfied. Smart companies use Employee Appreciation Day to show what their employees mean to them. Using a large gesture or a small one can have a big impact and build a stronger company culture.

Keep Your Money: 5 Often-Overlooked Small Business Tax Breaks

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You work hard to run your own business, so why not claim all the eligible tax deductions. However, when dealing with the general stresses of preparing for tax time, many business owners often overlook a number of deductions and credits. Missing out on these tax breaks can add up to losing out on a lot of money.

These are five often overlooked small business tax deductions you should know:

1. Section 179 Software Depreciation

Many small business owners may be familiar with the tax savings related to depreciation on capital investments like equipment and machinery. However a large number are not aware that under IRS Section 179 you can also claim software depreciation. As long as your business was profitable in 2016, this valuable tax write-off applies to off-the-shelf software for business use. Read more at IRS: Electing the Section 179 Deduction.

2. De Minimis Safe Harbor Deduction

An alternative to the Section 179 deduction is the de minimis safe harbor limit, which now has a new higher limit. In legal terminology, the term “de minimis” means “so minor as to merit disregard.”

Yet recent changes should make business owners sit up and take note! Recently increased from $500 to $2,500, this IRS-set limit “dictates whether an asset purchased by a business can be immediately expensed; or if it must be capitalized and then depreciated over time,” says Jonathan Duong, CFA, CFP, president, founder and owner of wealth advisory firm Wealth Engineers, LLC.

“Under the increased limit, business owners can accelerate the tax deduction they take on items like computers, tablets, and smart phones – which often cost more than the previous threshold of $500,” he says. Duong explains the higher limit simplifies bookkeeping for many business owners because there’s no need to track depreciation over several years for low-dollar assets. “There are a few requirements in order to utilize this deduction, so business owners would be wise to ask their accountant about it and verify that they qualify,” he suggests.

3. Casualty and Theft Loss Deduction

While tax deductions for personal property loss due to disasters (i.e. flood, hurricane, tornado, fire, earthquake,volcanic eruption and theft) may be well-known, business owners may not realize that the Casualty and Theft Loss Deduction covers business property loss as well. Additionally, if that loss was from a federally claimed disaster area and warranted public or individual assistance, you can treat the loss as having occurred the previous year, so that it can be claimed on your current taxes. See the IRS Business, Casualty, Disaster & Theft Loss Workbook for more information.

4. Mileage and Auto Loan Deductions

Every time you hop in your personal vehicle to drive somewhere for your business, you’re accumulating eligible mileage deduction. And, you may never even think of it!

The standard mileage rate for the 2016 tax year is $0.54 per mile. However, if you claim a section 179 deduction for the vehicle you won’t be able to claim business mileage as well. And don’t forget that if you have a car loan but use your vehicle for business sometimes, you can also claim a portion of your auto loan interest. Find out more at IRS Transportion.

5. Research & Development Deduction

Have you spent money researching how to improve or test a product in your business? If you’ve incurred costs to “eliminate uncertainty about the development or improvement of a product,” your business could be eligible for the Research and Development (R&D) deduction. Significant changes regarding the R&D deduction were signed into law as of January 1, 2016. It is now possible for qualified businesses to use the deduction to offset alternative minimum taxes (AMT) and the Social Security portion of employer’s payroll taxes.

Even smaller businesses may have eligible expenses in this area as well, including product costs incurred to develop:

  • The formula
  • An invention
  • A patent (including the associated attorney’s fees)
  • A pilot model
  • The process
  • Technique
  • Development of internal-use software

 

Review the IRS’ Research & Development page for more details.

As a time-strapped small business owner, you may not be as ready for tax season as you’d like. Yet carving out even a few hours to do your tax research could be worth it. After all, you don’t want to leave money on the table when tax time rolls around.

Don’t Just Ask Your Accountant About Taxes!

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People often perceive tax time as an opportunity to save, by digging deep for deductions; However, approached correctly, tax time can also be a chance to grow. This tax season, take the opportunity to ask your accountant questions that go beyond the paperwork for this year’s filing. Here are eight questions to ask your accountant this season:

How Else Can You Help My Business?

Accountants aren’t usually business coaches or financial advisors; however, the good ones are whizzes at analyzing and understanding a mass of business data. They can suggest ways to better manage your cash flow, software programs that can improve your invoicing, and other tactics to make your business more profitable.

“The great accountants look at business as a circle where sales and marketing and finance and HR are all tied together,”Sageworks founder Brian Hamilton told Entrepreneur. “They can pull data on the operations of all of the various areas of the business together to provide more meaningful insight.”

Am I Using the Right Legal Structure?

Just as your business changes over the years, the business structure you need might change as well. Ask your accountant if, for example, it makes sense to shift from a sole proprietorship to an LLC or make other revisions to your business structure.

“Changing your business structure can separate your personal assets from those of your business, thereby protecting them if your business should be sued,” entrepreneur Nellie Akalp writes in All Business. “Also, you might find some tax advantages by switching to a different legal structure.”

What’s Effecting the Growth of My Business?

Growth is the life blood of any business. Your accountant can guide you on profitable growth in different ways. They include determining the true cost of employees when salaries, insurance, training and all other costs are factored in.

When Should I Make a Large Equipment Purchase?

If you run a construction business and your truck breaks down, you likely have to buy a new one immediately. However, many large equipment purchases can be more adroitly timed. Your accountant can help you evaluate the quality of your equipment, letting you determine if old equipment is holding you back. They can also help identify any tax breaks and cash-flow advantages from how you time your purchase. Your accountant can also suggest if you should get rid of a building, equipment or assets that are no longer paying off.

“Investing in capital purchases, like new equipment for a small business, often has positive tax benefits. But without the right timing and planning, equipment purchases don’t always mean cost savings,” explains accountant Joe Lauzen.

How Can I Take Care of the Health of My Employees?

Your accountant isn’t going to sell you a health policy or measure your workers blood pressure, of course. However, your accountant can be a valuable resource in determining the total cost of your labor force and how much you can spend on health care on a monthly basis. Additionally they can advise on how to negotiate the ins-and-outs of the regulations regarding health care.

Is There Anything I Should Do to Increase My Savings?

Your accountant can analyze your expenses, determine how to reduce bad debt, restructure financing, identify valuable customers and many other steps that can limit the amount going out while maximizing what’s coming in.

How Should I Prepare For Next Tax Season Now?

Many time-pressed entrepreneurs have trouble seeing past this month, let alone to next year. However, your accountant can advise on steps to minimize your taxable income throughout the year, so you maximize your return in 2018.

How Should I Start a Second Business?

Many entrepreneurs are serial sorts – when the bug of running their own business hits them, they want more. If you are going into start-up mode, your accountant can advise you on tax breaks, such as advertisements and travel to land new customers, that you can take even before you’ve opened your doors.

Tax time is a perfect time to ask your accountant questions about other topics. Take a few minutes to ask your accountant a few simple questions and you could improve your future, instead of just simply maximizing your return.

Tax Success for Small Business: A Tax Season Guide

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Ah, the sweet smell of tax season. Notes of despair, coupled with age-old panic, with a solid base of frustration and woe.

Guess what? Tax season for small businesses doesn’t need to be a woe-is-me event. Smart small businesses look at taxes as a year-round event, not just every spring and fall. That’s because those smart small businesses chose a tax advisor. They’ve built a relationship — which involves, without a doubt, some hefty legwork to begin — and that relationship serves their business month after month, year after year.

So how do you set your small business up for tax season success and choose the right tax advisor? We sat down with Kathryn Kaufman,CPA and Senior Associate at Chicago-based FGMK, LLC, a tax advisor who knows the nuances of taxes for small business well, and asked her advice. Here, she’ll help you get on your way with choosing an advisor; mistakes she sees small businesses making with tax preparation; and the benefits to building a long-term relationship with a tax professional who knows your business.

What are the key considerations for small business owners in choosing a tax advisor?

Kaufman: When a small business owner is considering a tax advisor, one of the most important aspects to consider is making sure the tax advisor has a good understanding of the business in which you are involved. There are so many kinds of tax credits out there and tax codes. So hiring an advisor that understands your industry can help you maximize tax benefits.

I would also advise the business owner to go with a tax advisor that focuses on small to middle-market businesses. When a larger company focuses the majority their business on larger clients, the smaller businesses tend to get lost.

As a tax advisor, how can your clients help you best at tax season?

Kaufman: I can’t tell you the number of times I have seen returns that need to be amended. Usually it’s due to information not given to the tax preparer. Whenever a business has a new agreement in place, they should send it over to their tax preparer right away. These can be structure changes, investor changes, etc. These are things we need to know about and capture on the return. Also, when you are not sure whether a document can impact your businesses tax return send it anyway. I always say, “I’d rather you give me too much than too little.”

What should owners consider when deciding to file on time or extend their returns?

Kaufman: One major reason small business owners tend to extend their returns are to give themselves extra time to fund their employer 401k matches/profit sharing contributions. Managing cash flows can be a deciding factor when it comes to funding those matches and timing of filing the returns. Also, I would always recommend extending a return rather than rushing it out. You run the risk of not capturing all the necessary items and having to then amend and refile the return.

When preparing returns themselves, what deductions and/or tax credits do you see missed most often?

Kaufman: There are so many credits out there and based on your industry, they vary. The most common mistakes I see small businesses owners make when trying to file returns on their own is electing incorrect year-ends, missing tax deductions/credits eligible to their industry, misclassification of income and expenses, and not filing in the correct states.

What are the benefits of building an ongoing relationship with a tax advisor?

Kaufman: You learn more about a client year-round than once a year. By building an on-going relationship with your tax advisor, you’re setting yourself up to prevent mistakes on your tax filings and maximize both your tax strategies and your business. When you have a tax advisor you trust, they’re your partner in every financial aspect of your business, including business decisions where you may not be able to see the tax ramifications.

A trusted relationship means you have a guide who knows your business and taxes to consult year-round, not just when IRS forms have to be filed. This prevents completely avoidable messes and surprises, two things I think every business owner would like less of in their lives.

5 Business Owners Discuss Their Favorite CRM Systems

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Strategic Funding spoke with small business owners to get insights on some of the top-rated CRMs featured on common software reviews sites such as G2 Crowd.

Previously we provided an overview of Customer Relationship Management(CRM) software. Here five small business owners who have used cloud software to improve their customer relationships give us their thoughts on what makes a CRM system good for business and why they chose the one they did:

Pipeline Deals:

Starts out at $25 a month. Benefits include top-notch customer support and features include deal tracking, lead/contact management, mobile CRM, data importing and a number of integrations with other platforms your business might use.

“The support is incredible, which is what a growing company needs the most,” said Jim Jacobs, Principal at Focus Insite. “We always get an answer within minutes on an issue. CRM is the lifeblood of our sales efforts, and we aren’t talking just automation. We need to pick up the phone every day and make things happen. Our business wouldn’t exist without a good CRM, and after about a half dozen attempts, Pipeline Deals is leaps and bounds above.”

HubSpot:

Hubspot is primarily known for its inbound marketing automation platform with prices that start at $200 per month. However, the company also provides a CRM for free to any business (as long as your company has a website). The primary benefit is having a CRM that includes all of the standard features and functionality you would expect – for free; but you now also have the ability to integrate advanced sales and marketing automation capabilities when you’re ready. HubSpot is also known for their quick setup process and new LeadIn tool.

“We have used HubSpot CRM for over a year,” said Mark Tuchscherer, President of Geeks Chicago. “One of the primary reasons for this rests in pricing concerns. When you get started, using only the free version, you find that it is packed with amazing out-of-the-box features. Many people in my industry never find the need to upgrade to the paid version. Last year, HubSpot also added a tool called Leadin that works directly with the CRM. This tool is used on the website to capture new leads. It can tell you not only how these leads found you, but what actions they took before filling anything out.”

Hatchbuck:

Pricing starts out at $59 per month. Similar to HubSpot, Hatchbuck is a CRM tool integrated with marketing automation, which is the ability to automate marketing processes that help capture leads and close deals. These two types of tools are very important to the growth of a business. It might be a smart strategy to get an inexpensive tool that combines both. Hatchbuck is also known for their excellent customer service.

“Hatchbuck gives me my CRM, lead forms, lead nurturing, email marketing, website tracking and sales tools,” said Brian DeAntonio, President of CROSStrax, LLC. “It compliments WordPress wonderfully. It’s literally exactly what I needed. You’ll find what sets Hatchbuck apart is their partnership culture and the tremendous people who work there. They want you to be successful and are always available for even the most stupid of my questions.”

Zoho:

Pricing starts at $12 a month for their CRM app, and other apps are an additional cost. The benefits include the ability to use a number of different Zoho apps to run your business. It creates a more one-stop-shop approach to your business software. Apps include email marketing, finance, HR, IT, help desk and more.

“I switched to all Zoho products this year,” said Emily LaRusch, CEO & Founder of Back Office Betties. “Initially the big selling point for me was having a single sign-on for all of my products instead of having to log into six different things every day. But that changed when I found that I could easily figure out how to set up Zoho on my own. I had used Salesforce before and couldn’t easily figure it out. I run a small business and didn’t need all of the fancy features at that time and found using a spreadsheet was actually easier. As I outgrew the spreadsheet, I began to research other options and stumbled upon Zoho. I love the ease of use and that I can integrate other Zoho products. For example I can pull up a customer’s record and review their billing history, support desk tickets and email history all from the CRM.”

SalesForce:

Pricing starts out at $25 for their most basic monthly account. Known as the most commonly used CRM, it has all the bells and whistles, which can be expensive when you add them all on. But, SaleForce is the Tesla of CRMs and is great if you have a full-blown, internal sales team.

“Salesforce is invaluable to me as a CRM tool,” said Benjamin Luftman, the managing partner of Luftman, Heck & Associates. “It allows me to communicate with my clients about important steps in their cases, as well as keeping track of my schedule so that I can stay on top of client meetings, hearings and other appointments. In addition to CRM, Salesforce essentially puts all of the details of a client’s case at my fingertips, allowing me to access documents, evidence and videos all through my smartphone. That means I’m always prepared to answer a client’s questions and provide them with updates about their case, as well as always being prepared when negotiating with prosecutors or representing my clients in court.”

Small Business Insights on CRM Systems -Part 1

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Many business owners are using outdated systems to track their customers — spreadsheets, an email list, notes on a phone, a Google Doc or a couple of Post-It notes on a desk. But, these aren’t likely to get you far when trying to understand your customer and how they interact with your business. Smart business owners are closing out of Excel and leveraging the power of customer relationship management (CRM) software.

We gathered insight from small business owners on some of the top-rated CRMs featured on software reviews sites such as G2 Crowd. But first, a primer on CRM — what it is and how it can help your business:

Small Business CRM Insights

CRMs allow you to track your customers, leads and prospects and all of their associated data. This data can include messages and conversations with this customer from anyone within your company. Today, the biggest and best CRMs are located in the cloud, so anyone within your company can access and record data in one place.

CRM software allows you to focus on the best part of the three letter acronym: the R for relationship. Maintaining positive relationships with your customers is the secret sauce to getting clients to stick around and spend money. According to the 2015 Global State of Multichannel Customer Service Report, 62 percent of global consumers have stopped doing business with a brand or organization due to a poor customer service experience. CRMs can help ensure your customers have a positive experience with your business, every time.

CRM Features

CRMs can be a hefty investment for your business. When making a decision on the CRM system that will best fit your needs, it is important to remember that CRM software has a lot of the same product features, and differentiators can be price, customer service and integrations.

Here are some of the features you should expect from a CRM:

  • Sales team automation and tracking
  • Opportunity & pipeline management
  • Task & activity management
  • Lead management
  • Customer support/call center integration
  • Marketing automation
  • Social media integration
  • User/role & access management
  • Reporting & analytics dashboard

 

There are a lot of choices when it comes to CRM systems that work well for small businesses. In part 2 of this article, we will be providing some insight from small business owners that have used these systems to help give you a leg up when vetting which CRM is best for your needs.

5 Ways SMBs Can Improve Business with Chatbots

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Commerce is rapidly entering the chatbot era. Chatbots — commonly referred to as bots — are designed to integrate with web and mobile platforms. It interacts with users where a live person would have previously. In fact, a term commonly used to describe bots is “virtual assistant.” They can free up time for customer support agents and business owners.

Artificial intelligence (A.I.) driven chatbot services like Twyla, for example, ‘learn’ by evaluating your team’s customer support chat logs. You can then optimize responses for accuracy, helpfulness and brand voice. This allows existing customer service agents to handle more complex tasks or questions.

In addition to reducing costs for live customer support, here are six chatbot technology programs that may help small business owners improve operations:

1.) Administer Marketing Campaigns

Shopify says you can “hire” its “virtual marketing employee” Kit starting at just $10 per month. The Kit API performs digital marketing tasks, such as email marketing and Facebook and Instagram advertising. It also sends a daily follow-up via SMS or IM with advice on how to improve marketing campaigns. Users can implement at the click of a button – by simply replying ‘Yes.’

2.) Manage Online Sales

Chatbots can improve online sales channels by seamlessly handling online purchases. The 1-800-Flowers chatbot  launched on Facebook Messenger, offers users suggestions on arrangements without having to speak with a sales agent. 1-800-Flowers president Chris McCann told Digiday, “Over 70 percent of the company’s chatbot orders have been from new customers.”

3.) Personalize Online Transactions

Some big brands, as well as personal stylists and makeup artists, are using Kik’s Bot platform to up-sell via product recommendations. Let’s take this particular Kik bot, if a customer is shopping for dresses, the A.I. can suggest options based on the available inventory. Then it suggests related items to complete the outfit, such as matching shoes or accessories. If the customer doesn’t make the purchase at that time, the chatbot can access and utilize the conversation the next time the customer visits.

4.) Improve Customer Self-Knowledge Base

Similarly, bots can be used to improve your customer knowledge base by providing accurate company and product information. noHold, Inc’s Albert is a patented technology that feeds bots information from Word and Google documents. It turns Product Guides (or backend Policy Manuals, etc.) into informative conversational chatterbots, reducing delayed response times and misguided information.

5.) Boost In-Store Sales

Shopping companions like Amazon’s Echo (and Alexa Skills Kit, the voice behind Echo) helps brands connect with customers using voice commands. For instance, say “What’s for dinner?” and the Campbell’s soup bot instantly gives meal and recipe ideas. Small business owners such as liquor distributors and apparel brands can utilize this technology to direct customers to retail locations where their products can be purchased (i.e. “Where can I find..?”).

6.) Answer Employees’ Questions

Loka, Inc’s Jane is an employee information chatbot for businesses on Slack. Employees can ask it anything and receive a timely response – allowing HR departments to tackle bigger problems. In addition to answering frequently asked questions like, “When is payday?” these bots can alert HR teams to potential issues or gaps in employee knowledge. If, for example, the system is receiving an unexpectedly high amount of expense reimbursement questions, this can indicate a problem with accounting software that needs to be addressed.

While the human touch will never 100% disappear from business, chatbots can be a way for owners to automate some business functions. By integrating chat technology with existing processes, businesses can push their companies into the future while providing excellent interactions for customers and stakeholders.

5 Ways to Perfect Your Virtual Trade Show Networking Strategy

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Virtual trade shows can be a boon for your small business in terms of networking and generating leads while allowing you to stay close to home. According to Market Research Media’s most recent Virtual Conference & Trade Show Market Forecast, the virtual event market is on track to reach $14 billion by 2018. By 2023, it’s expected to climb to $18 billion, a sign of their increasing popularity.

You can expand your contact list through virtual trade shows. Here’s what you need to know to be a networking pro.

1. Fully flesh out your profile

With a virtual trade show, you rely on your profile to paint a clear picture of who you are. Moving beyond the basics of just your name and title can help you stand out and attract interest from potential connections.

For example, your profile could outline your small business’s mission and history. Include a brief rundown of the products and services you offer. You can also spell out the problems your business solves for its customers. The goal is to create a profile that’s compelling so prospects and potential partners will want to learn more.

2. Check the roster

Before a virtual trade show gets underway, review the list of event attendees. Specifically, take time to identify any competitors attending, as well as the industry influencers who are set to make an appearance. This can also be a useful way to build your prospect list of potential customers you’d like to connect with. Be sure to share the breakdown of who’s who with your team, particularly anyone who’s going to be manning your virtual booth during the event.

As you’re scanning the exhibitor list, take note of the names you already know and the ones you want to. For example, let’s say you’re interested in finding a mentor or having a conversation with a notable name in your industry. If you’re attending a virtual trade show with people that are currently part of your network, they may be able to help by offering you an introduction to some of the key players.

3. Be actively engaged

Even though a virtual trade show takes place online you still have an opportunity to interact with prospective customers or other small business owners. On the contrary, virtual events typically offer multiple ways to socialize, including live chats, forums and message boards. This is a prime opportunity to reach out and say hello or lay the groundwork for a more in-depth conversation.

When you’re prepping for the event, take the time to work out a schedule for manning your booth. Someone from your team should be available during all show hours to respond if a target contact pays a visit. Again, this is why step #2 is so important. If you or your employees don’t have a clear idea of who you’d like to network with and why, opportunity may pass you by.

4. Track your traffic

One of the great things about virtual events is that you have the ability to track who’s coming to your booth and what they’re doing while they’re there. For instance, you can see what kind of content they’re accessing, how much time they’re spending at your booth, which discussions they’re getting involved in and what questions they’re asking. Besides that, you also have their name and contact details.

All of this information can be invaluable for expanding your network, if you know how to use it. As you collect the data, take time to sort visitors into two basic categories: sales leads and networking leads. Keep track of who’s visiting your booth and compare that to the list you made earlier, identifying your competitors, influencers and prospects. You can use the names that overlap on both lists as a starting point for who you plan to reach out to first.

5. Follow up

The end of a virtual trade show event is just the beginning for growing your network. At this point, it’s time to take action to ensure that none of your leads falls through. There are a few ways you can do this. The majority of them are the same ones  follow up tactics used after a physical show.

For instance, you could send out a friendly email a day or two after the show is over to say hello and refresh your contact’s memory of who you are. Connecting via social media is another option. Always strive to be polite without being pushy and look for ways to add value to the relationship. Just remember to aim for striking the right balance between give and take with any new contacts you make.

New Changes to California’s Workers’ Compensation Laws

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California is one of several states that ushered in 2017 by adding new laws governing small businesses. One of the most talked-about measures implemented in the Golden State is an update to the existing California workers’ compensation laws.

Assembly Bill 2883 sets new guidelines for defining “employees”and who qualifies as an excluded employee. The bill, which took effect January 1, 2017, has the potential to make carrying workers’ compensation insurance coverage more expensive for some small business owners.

What Assembly Bill 2883 Requires

The new rules affect all business workers’ compensation policies, including policies already in force. The bill requires businesses to extend workers’ compensation coverage to employees who were excluded under the old law. That includes certain officers and directors of private corporations and working members of partnerships and limited liability companies (LLCs). Previously, these individuals only opted into a company workers’ compensation policy.

Going forward, officers, directors and partners are to be covered under the business’s plan. The exception is if they meet the definition of an excluded employee. An exemption from coverage is for officers or members of the board of directors who own at least 15 percent of the issued and outstanding stock of the corporation, or a general partner or managing member of an LLC. By law, exemption qualifiers are to complete a written waiver of his or her right to workers’ compensation coverage. Then it goes to the company’s insurer for filing.

The Assembly Bill’s purpose is to end abusive practices associated with the wording of the old workers’ compensation law. Because the definition of an excluded employee was broad, it created a loophole of sorts. This loophole allowed companies to list everyone in the organization as an officer or director. The companies would then avoid having to pay anything for workers’ compensation coverage.

Is Your Small Business in Compliance with the New California Workers’ Compensation Laws?

There are two specific ways that the updated guidelines represent a stumbling block for California-based businesses. First, the law took effect at the beginning of the year. It affects in-force policies as well as new policies purchased after January 1st. If you have a policy in place for your small business and one or more of your members qualifies for an exemption but you don’t have a waiver on file with your insurance company, you may technically be in violation of the law.

While Assembly Bill 2883 doesn’t specify a penalty for non-compliance, your insurance company could decide to invalidate any claims filed against your policy. That could create financial headaches if an employee decides to sue in connection with an injury.

How the New Law May Affect a Small Business’ Bottom Line

Along with invalidating claims, the more immediate impact of the new regulations is the potential for an increase in workers’ compensation premiums. According to the Oregon Department of Consumer and Business Services, California already ranks as the most expensive state in the nation in terms of workers’ compensation coverage rates. As of 2016, the premium coverage rate was $3.24 per $100 of payroll.  This is nearly four times higher than North Dakota, which boasts the lowest rates overall.

If your business has employees who were previously exempt but no longer meet the standard for an exemption, adding them to your existing policy likely means paying more in premium costs. This may not be as damaging for larger corporations. However it could have a more noticeable effect on your operating expenses as a smaller business. Paired with the recent minimum wage increase, which raised the minimum wage rate to $10.50 per hour for businesses with 26 or more employees, the new law represents a tangible threat to small business owners’ profitability.

Unfortunately, there’s no work-around for the California workers’ compensation laws currently, outside of applying for an exemption. If that’s not an option for your business, examining at your current coverage is certainly something to consider. Shopping around for a more favorable rate with a different insurer could help lessen the sting to your bottom line.

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