BRB Stories: Healing Relationships with Body & Fitness

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Congratulations to Superfit Hero, a Los Angeles-based small business that provides premium activewear for plus-sized women, for being named a third-place winner of Kapitus’ inaugural Building Resilient Businesses contest! Superfit Hero will receive $20,000 to help improve its business.

From Roller Skating to Workout Gear

It’s not often that one can use the words “roller derby”, an often-violent contact sport, and

Superfit Hero, Kapitus, building Resilient Businesses, small business

Micki Krimmil, founder of Superfit Hero, realized her passion for plus-sized sports wear for women after a stint as a roller derby player.

“entrepreneurism” in the same sentence, but in the case of Superfit Hero’s founder and CEO, Micki Krimmel, the two go hand-in-hand. Krimmel was a skater for the Angel City Derby team for nearly 8 years, and during that time, she came up with the idea of creating fashionable active sportswear for plus-sized women.

Krimmel credits playing roller derby for bringing out her inner athlete, as well as finding the will to stop being self-judgmental about her appearance. 

“I began playing roller derby around the same time I started my company,” said Krimmel. “What I thought was going to be a fun hobby quickly became much more than that. Roller derby became the most central part of my identity. For the first time in my life, I was an athlete.

This transformation proved nothing short of revolutionary. My entire relationship [with] my body changed and my confidence soared as a result. Like most people, I had a rocky relationship with my body and with fitness over the years. 

“I tried every diet, every fitness program, and I never felt like I was good enough. Once I began to think of myself as an athlete, my mindset completely shifted. Fitness became about performance instead of appearance…I applied this newfound confidence to every aspect of my life, including my business. As an athlete, I became increasingly frustrated with how fitness was being marketed to women. We are bombarded with constant messages that remind us of our inadequacy.”

Filling a Need

Krimmel has had an entrepreneurial spirit her entire career. In 2009, she founded Neighborgoods, a pioneering firm in the sharing economy, and served as a mentor for Code for America, a consultancy program for civic startup companies. When her career in roller derby was over, becoming an entrepreneur once again was a natural fit for her, especially given her new-found passion for helping women of all sizes get physically fit – a niche that had gone relatively unnoticed until Superfit Hero came along.

Superfit Hero provides active wear for plus-sized women, while encourage every woman to be proud of their bodies.

As the New Year approaches and many of us make resolutions to get physically fit, Superfit Hero is here to help plus-sized women keep that goal while encouraging them to be proud of their bodies. 

“Women are supposed to look a certain way, act a certain way, and fitness is a tool we use to conform to those ideals and as a punishment for not doing so,” said Krimmel. “I was frustrated that the real benefits of fitness were hidden behind these traditional marketing messages of the fitness industry. We all have the capacity for joy in movement. We all have the right to feel at home in our bodies. You don’t have to look a certain way to participate in fitness and enjoy the benefits. All you need is a body – any body.”

Manufacturing Woes

Like with all entrepreneurs, Krimmel faced some huge challenges when she launched Superfit Hero in 2015, with the biggest one being manufacturing. Krimmel found that despite Los Angeles being one of the biggest fashion and manufacturing capitals in the world, most of the factories in the city were geared to serve the larger retailers. 

In the first two years, Krimmel used six different factories and constantly ran into inventory shortages as a result. Krimmel was eventually able to find a manufacturing partner as well as slowly built a network of manufacturing hubs.

“I’m in a much more secure place in that I now have more options and a bit of leverage that comes with larger order sizes,” she said. 

A Passion for her Mission

Krimmel is just as committed to building a brand of plus-size fitness clothing so that no woman feels ashamed of or excluded from becoming physically fit, especially when they work out in public. Since launching, Superfit Hero continually offers new bundles of activewear, including its Daydream Eco-Leisure line, while continuing to offer its best-sellers such as its Superhold line of leggings and sports bras.

“My vision for the world is a future where the natural diversity of body shapes and sizes is celebrated, and everyone is welcome to participate in the fullness of life regardless of their size or ability…Superfit Hero is the world’s most inclusive line of premium plus size activewear with sizes L-7X,” said Krimmel. “Our mission is to make fitness and movement more inclusive and empowering for women. Over 68% of American women wear plus sizes but only 8% of fashion brands serve them. 

“Working with our community, we’ve spent years perfecting our fit for plus size bodies. We have established our brand as a leader in the plus size fashion industry. We partnered with Kohl’s to bring our entire size range to stores across the country. For many of our customers, this was the first time they were able to try on their size in-store anywhere.”

Marketing Expansion

Krimmel said that the company’s goal is to increase its reach through digital advertising and expansion, and the $20,000 from Kapitus’ BRB contest will help with those efforts.

“We are looking to hire a marketing director and increase our reach via digital advertising to expand our impact to a wider audience,” she said. “We’ve proven that we have what it takes to get our brand off the ground and now we need your help to get to the next level. Thank you for your support.” 

Learn the stories of all of our small business winners:

BRB Stories: After Devastating Setback, Play Pits Takes First Place in Kapitus’ BRB Contest!

BRB Stories: Relying on Faith and Passion for Business Success

BRB Stories: Creating Libraries-worth of Unforgettable Memories!

Small Business Grants Lending Kapitus California

Small Business Grants Still Available in California

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With major urban hubs such as San Francisco, Los Angeles, San Diego and San Jose, California is indeed a golden place for small businesses. With 4.1 million small businesses scattered throughout the state, California boasts the largest population of small businesses in the US, eclipsing even New York and Texas. 

With the most small businesses, however, came the most suffering during the COVID-19 pandemic out of any other state. By 2021, over 40,000 small businesses were forced to close, including one-third of the state’s independently owned restaurants. Also, more PPP loans were taken out by California small businesses than in any other state. 

Congress has made it clear that they are not going to allocate any more COVID relief money for small businesses. Programs such as PPP and the Restaurant Revitalization fund most likely will not be given any renewed funding, so small businesses in the Golden State are going to have to turn to grants for relief.

There are still some state and national grants and contests that California small businesses can apply to.

Kapitus’ $250K Building Reliant Businesses Contest

Kapitus has launched its Building Resilient Businesses contest, in which one first-place winner will receive $100,000, one second-place winning will receive $50,000, and five third-place winners will each receive $20,000. To enter, simply send a homemade, 2-minute video briefly describing your business, how it was able to persevere over the past two years, and how you would spend $100,000. The contest is open to all small businesses in the US (excluding Vermont and Colorado) that have been in business for at least a year and have less than $5 million in annual revenue. The deadline to apply is June 30, 2022. To enter the contest, go here.

The Small Business Innovation Research Program (SBIR) and the Small Business Technology Transfer Program (STTR)

These two federal programs serve as a conduit between small businesses engaged in scientific research and development and government agencies seeking to provide them with grants, and especially pertains to California’s Silicon Valley, the world’s largest hub for technology startups. Grants come in all sizes from various agencies. For example, the US Dept, of Energy provides grants to small businesses innovating in energy production. The STTR program requires that applying small businesses have a partnership with a nonprofit scientific research organization. To qualify for either program, click here.

American Express and Main Street America’s Inclusive Backing Grants

California has one of the largest Hispanic and LGBTQ populations in the country, so the American Express and Mainstreet America’s Inclusive Backing Grants national program very much so pertains to the Golden state. AmEx and Main Street America is providing more than 300 grants of $5,000 each over four cycles throughout 2022 to small businesses located in older or historic commercial districts with priority to be given to small businesses owned by the LBGTQ+ community, Hispanic-owned, veteran-owned, and business owners who are women and people of color. Applications for the fourth grant cycle are now being accepted by business owners who identify as native or indigenous people, Hispanic, LGBTQ+ and immigrants and refugees. Membership in the National Main Street Center is not required. Applications for the fourth grant cycle can be found here.

The California Dream Fund

The California Dream Fund is a $35 million small business grant program by the state’s Office of the Small Business Advocate through select centers of the state’s Technical Assistance Expansion Program (TAEP) . New entrepreneurs and small business owners must complete an intensive training program through select participating centers of their local TAEP office. Following successful completion of the training and consulting program, new businesses will be eligible to apply for a microgrant of up to $10,000. Those interested can apply here. 

The Job Creators Quest Grants

Southern California business owners who identify as people of color, military veteran or with the LGBTQ+ community with two to 20 employees can still apply for a $100,000 grant program from Founders First, which will choose 30 winners by the end of the year. As a business owner, you need to demonstrate that the grant money would be used as growth capital or to provide premium wage jobs, as well as fix or enhance vital equipment in order to scale up your business. The deadline to apply is Nov. 30, 2022, and the small business applicants must be located in the Los Angeles, Orange County, Riverside, San Bernardino and San Diego regions. Those interested can apply here. 

The San Francisco Storefront Grant Program

The city of San Francisco is providing $1,000 to $3,000 grants to assist small businesses in low-income districts become compliant with the city’s Accessible Business Entrance program that ensures that businesses are accommodating to those with disabilities. To qualify, your business must have been sued for not being accessible to disabled peoples and be a nonprofit. The deadline for the grant program is June 30, 2022. Interested applicants can learn more about the program here.

Don’t Lose Free Money

Small businesses across the country are being hit with the trifecta of bad economic conditions: skyrocketing inflation, staff shortages and supply chain disruptions, and that condition is being especially felt in the most economically diverse state in the country, California. Small business owners should seek to obtain grants any way they can in these uncertain times.

Grants New York State Kapitus Small Business

Small Business Grants Still Available in New York State

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Federal pandemic-related assistance for small businesses has all but dried up, as money for programs such as the Paycheck Protection Program, the Restaurant Revitalization Fund and the Economic Injury Disaster Loan (EIDL) programs have been used and Congress is pushing back hard on renewing them. As small businesses are still reeling from the current, difficult economic conditions, they can still turn to their state governments and other corporations for grants and relief packages. 

Various states have different programs that are set up and still funded, and if you still need help as a small business, you should look into whether you qualify for any of these grants. 

The Empire State

If you’re seeking state aid for small businesses, New York is a great place to start. There are more than 623,000 small businesses in New York State (including New York City) that account for 53% of the jobs in the state, making New York one of the biggest hubs for small businesses in the US. The state is offering several small business grants, and there are even some national grants (and one contest!) that small businesses in New York can apply for.

Kapitus’ $250K Building Resilient Businesses Contest

Kapitus has launched its Building Resilient Businesses contest, in which one first-place winner will receive $100,000, one second-place winner will receive $50,000, and five third-place winners will receive $20,000. To enter, simply send a homemade, 2-3 minute video of yourself briefly describing your business, how it was able to persevere over the past two years, and how you would spend $100,000. The contest is open to all small businesses in the US (excluding Vermont and Colorado) that have been in business for at least a year and have less than $5 million in annual revenue. The deadline to apply is June 30, 2022 For an official list of rules, click here.

The State Farm LISC Grant Partnership

State Farm, through its partnership with Local Initiatives Support Corporation (LISC) is providing new grants totaling $2 million to support small businesses in underserved communities. Some funding will go towards helping small businesses operate in low income communities, and some will go towards community development. The latest round of funding will go towards 12 communities: New York City, Atlanta, Houston, Chicago, Central Illinois, Milwaukee, Minneapolis, Philadelphia, Phoenix and the Puget Sound region in Washington State. 

Olean Marketing and Rent Grants

The city of Olean, NY is giving out grants to assist small businesses with rent.

The city of Olean in upstate New York is offering local small businesses with $200,000 in small business grants. Small businesses can apply for money to cover marketing costs, including advertising and eCommerce set up costs, and to help with rent as we come out of the COVID-19 pandemic. Eligible small businesses can have 25% of their rent covered for up to two years. Businesses can apply for up to $5,000 under each program. There are multiple rounds in this grant program, and the first deadline is June 10, followed by July 15, 2022 and August 12, 2022. 

New York State COVID-19 Pandemic Small Business Recovery Grant Program

New York’s state government is still providing grant assistance to small businesses that suffered through the pandemic. These small businesses can be micro-businesses or arts and cultural organizations, and the amount they can apply for ranges between $5,000 to $50,000. Businesses can apply by phone, and there is no set deadline.

Tourism Return-to-Work Program

 New York’s Empire State Development program is offering grants to small businesses in the tourism, transportation and accommodations industries throughout the state to encourage employment. Eligible businesses must have hired or plan to hire at least two full-time employees in the first half of 2022 and show that their business suffered through the pandemic. Grants may provide up to $5,000 for each employee. There is no stated deadline for these grants. 

Meet in New York Grant Program

New York’s Empire State Development Program is also offering grants to small businesses that host  conferences, meetings and trade shows throughout the state in order to invigorate  tourism and boost economic activity that had slowed due to coronavirus. Grants will cover a portion of the costs of events and offer discounts through tourism businesses. For example, the grant may  offer to cover the costs of blocks of hotel rooms so event planners can offer discounts to event attendees. Venues with capacities of at least 250 people are eligible. There is no hard deadline for these grants.

New York Restaurant Resiliency Program

If you own a restaurant in New York and are worried that the federal Restaurant Resiliency Program has

New York State’s Restaurant Resiliency program is still granting money to food service businesses and food banks.

been shut down, then worry no more: New York State’s Dept. of Agriculture and Markets’ Restaurant Resiliency program is still open for business and is providing $25 million in funding to restaurants and food banks through the state. The funding goes to food banks, which can then be used by restaurants to cover meals. Food businesses can apply online, and food banks can apply for direct assistance.

The Biodefense Commercialization Fund

If you’re a small business in New York state that specializes in certain aspects of healthcare such as infectious diseases, vaccines, therapeutics and diagnostic tools, you’re in luck. The state is offering up to $40 million in grants to startups and academic centers that specialize in this field to encourage the expansion of availability of various treatments and vaccines for infectious diseases. Grants range between $1 million to $4 million, while academic institutions can apply for amounts between $250,000 and $500,000. Eligible companies must have received or are in the process of receiving series A or B funding and intend to stay in business for at least three years after receiving their grants. Small business can apply online.

New York Arts Grants 

The New York State Council on the Arts is providing over $3 million in grants to entrepreneurs or individuals seeking to pursue a career in various artistic fields, including emergency grants for those experiencing health issues and receiving awards, as well as fellowship opportunities for new artists. Deadlines to apply are throughout the year and next year, and this includes artists and studios throughout the state, including New York City. 

Don’t Give up Free Money!

While the US Congress has apparently shut its doors to new pandemic relief spending, your should always look to your state government or national grant programs that your small business may be eligible for. There is financial relief for your business, and with a little research, you will be able to find it.

 

 

 

Related Articles:

Small Business Grants and Contests Still Available in New Jersey

Small Business Grants and Contests Still Available in Florida

Small Business Grants Still Available in California

Small Business Grants and Contests Still Available in Illinois

Ted Talks Small Businesses

Seeking Inspiration? Check Out the 10 Best Ted Talks of 2021 for Small Businesses

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Every small business owner, whether they are just starting out or are established, needs inspiration and advice – and there are few sources that are better at providing both than Ted Talks. For years, Ted Conferences LLC has been distributing free video lectures online from experts under the slogan “Ideas Worth Spreading.”

Kapitus has chosen the 10 most inspiring and educational Ted Talks lectures from the recent past that can help small business owners with everything from motivation and marketing to sales and being a great leader.

#10 Dorie Clark, Business Professor at Duke University, “The Real Reason We’re All so Busy”

Most people thought working from home would create more personal time. In many cases, however, remote work as a result of the COVID-19 pandemic created less personal time because people are literally working and living in the same space. Dorie Clark, a business professor for Duke University and keynote speaker, explores ways people can make better personal decisions to find that work-life balance.

#9 Kiki Ayers, Founder of Ayers Publicity, “How to Know if You’re Meant to be an Entrepreneur”

Being an entrepreneur means having grit and determination, having the ability to overcome failure and having the passion to pursue your dreams. Do you fit that bill? Kiki Ayers, founder and CEO of Ayers Publicity, talks about the difference between “9-to-5ers” and entrepreneurs, and how to tell if you have what it takes to start your own business at an early age.

#8 Karim Abouelnaga, Founder of Practice Makes Perfect, “The Small Business Hustle”

Boxer Mike Tyson once said “Everybody has a plan until they get punched in the face,” and that’s figuratively true for most aspiring small business owners – their idea for a business may be brilliant, but figuring out the logistics of turning that idea into a successful enterprise may be monumentally challenging. Karim Abouelnaga, founder and CEO of Practice Makes Perfect, talks about the common mistakes he made as an entrepreneur such as over-projecting and overspending.

#7 Marcos Aguiar, Senior Partner at BCG, “Seven Tools for Building a Business That People Trust”

One of the most difficult tasks for any small business owner is creating a brand that people trust. Achieving this brings great rewards, but it also often involves connecting to consumers on a personal level and communicating through multiple channels. Marcos Aguiar, senior partner at BCG, talks about ways to elevate your business so that it can be seen in a positive light in the public.

#6 Adam Biddle, Co-Founder of GHO5T, “Defining the ROI of Social Media”

The importance of communicating your brand through social media skyrocketed during the pandemic, and that meant that businesses that didn’t have a strong social media presence faced being left in the dust. Social media expert Adam Biddle, co-founder of GHO5T, brilliantly simplifies the oft-confusing world of social media sites and explains how to use them to your advantage.

#5 Patty McCord, Independent Executive Coach, “Four Lessons the Pandemic Taught us About Work, Life and Balance”

Few people can deny that the COVID-19 pandemic has permanently changed the way we work and how we balance our professional and personal lives. Patty McCord, an independent executive coach, expertly gives four key insights that employers and employees gained from working from home. She also said that many companies need to stop referring to their employees as “family” and must stop being stubborn about creating a work from home policy.

#4 Julissa Prado, CEO of Rizos Curls, “Three Rules to Help you Build a Successful Business”

Operating a small business means having to effectively spend limited resources and having a lot of grit, especially when you are an immigrant or person of color. Entrepreneur Julissa Prado. CEO of Rizos Curls, talks about the rules she herself followed on her way to becoming a successful Entrepreneur.

#3 Julia Skupchenko, Co-Founder of AlterContacts, “Behind Every Small Business There is a Story”

COVID-19 disrupted the notions and beliefs upon which many businesses are run, and in order to adjust and survive, we have to let go of “past conditioning.” Julia Skupschenko is a world-renowned entrepreneur who co-founded AlterContacts, a consulting firm for small businesses. She also created Lockdown Economy, a think tank dedicated to helping small businesses face the challenges of the pandemic. In her Ted Talks lecture, she outlines the current challenges small businesses face and how to overcome them.

#2 Simon Sinek, Best-Selling Business Author, “The Right Way to do Work-Life Balance”

The very definition of work-life balance was permanently skewed as working from home became the norm during the pandemic. How do we strike that perfect balance when our home office and our work computer are always present? Simon Sinek, a former advertising executive and small business guru, gives some much-needed pointers on how to achieve that.

#1 Linda Chiou, CEO of IVY Swimwear, “How to Cultivate an Entrepreneurial Mindset”
We are living in an unprecedented time in which a record amount of people are rejecting the doldrums of working in the corporate world and, instead, want to follow their passions by becoming their own boss. Linda Chiou, a successful entrepreneur and CEO of IVY Swimwear, gives a powerful talk that reminds us that being an entrepreneur is as much of a mindset as it is a job.

Tax Changes SMBs Should Watch for as 2022 Approaches

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The end of 2021 is in sight, and that means small businesses will soon face the dreaded task of filing taxes for the year. 

The Biden Administration has proposed tax increases for wealthy individuals and large corporations, and has spent much of its first year insisting that those tax increases would only affect the upper class, but be warned – that may not quite be the case in some instances. 

According to small business owners and accountants, there are a number of tax issues under the Biden administration’s plan that SMB owners should keep an eye on as 2022 approaches that may affect their bottom lines. 

Effects of the New Infrastructure Act

President Biden recently signed the $1.2 trillion Infrastructure Investment and Jobs Act which should offer a plethora of opportunities to small businesses by opening a floodgate of government contracts to apply to, as the government most likely will undoubtedly seek vendors for construction, IT support, administration and countless other areas. 

Carol Tompkins, business development consultant at online accounting software firm Accounts Portal, said four weeks of paid leave should affect small businesses.

Carol Tompkins, business development consultant at online accounting software firm Accounts Portal, said one of the biggest impacts that a provision of the bill will have on small businesses is that it will mandate a four-week, paid leave program for every American CJ  Worker. While this won’t affect taxes for small businesses, it could have a large impact on employee retention.

“The program would also fund grants to small business owners to help fill in the gaps for employees who might be away on leave. And this was seen as an advantage even before the pandemic,” she said. “Such programs for companies that had them became a factor that affected employment and retention of staff.”

As far as taxes go, the biggest impact of the bill is that it will immediately end the Employee Retention Tax Credit, which was set up by the American Rescue Plan Act that gave businesses a 70% tax credit in qualifying wages per employee retained. The tax credit was to expire by the end of 2021.

Who Should Expect Changes to Other Tax Reforms

The types of small businesses that could be affected if the Biden Administration’s changes to the tax code are enacted are:

High-Margin SMBs

The Biden administration has repeatedly stated that 97% of small businesses won’t be affected by its proposed tax increases, as most of them are aimed at C corporations. That’s not exactly true. The Administration’s proposal would raise the individual income tax rate for individuals with income above $400,000 to 39.6% from 37%. 

While it’s true that mom-and-pop shops won’t be affected by the hikes, high-margin pass-through businesses such as doctor and dentist offices, law firms, accounting firms, real estate developers and other small business that do report more than $400,000 in taxable income will see a tax hike, most likely in 2022 if Biden’s tax proposal becomes law. 

Businesses Selling Assets

Tyler Davis, a CPA at SimplifyLLC, pointed out that businesses need to be wary of the Democrats’ proposal to increase the top capital gains tax rate from 20% to 25%.

Tyler Davis, a CPA at SimplifyLLC, pointed out that businesses need to be wary of the Democrats’ proposal to increase the top capital gains tax rate from 20% to 25% for individuals earning $400,000 or more, as well as a 3% surcharge on taxpayers whose gross income exceeds $5 million in a given year. 

Democrats argue that the capital gains tax would only affect wealthy individuals who invest in the capital markets, but opponents say that many small business owners could be affected if they decide to sell an asset, such as property, after its value has risen, as the IRS may consider that a capital gain. 

“Because income on LLC’s typically flows through to the business owners, this provision could apply to many small business owners,” said Tyler. “These changes haven’t been passed yet, but it’s important to be aware of the proposals and follow their progress.” 

Pass-Throughs That Qualify for the QBI Deduction

During the summer, the Senate Finance Committee recommended passing the Small Business Tax Fairness Act that would make changes to the 199A deduction by not allowing pass-through businesses making more then  $400,000 per year to take a 20% tax deduction on qualified business income. 

The 2017 Tax Cuts and Jobs Act, passed during the Trump Administration, allowed professionals such as accountants, attorneys, doctors, athletes, consultants and entertainers whose incomes exceeded thresholds of $157,500 for single taxpayers or $315,000 for married couples filing jointly to take the deduction. The Committee’s legislation would impose a cap of $400,000 to limit how much wealthy business owners could deduct from their taxes.

Some small business groups such as the National Federation of Independent Businesses fear that the Biden Administration will seek to completely eliminate the 20% deduction, but Biden said during the summer that it would only be repealed for businesses making $400,000 or more. 

Businesses That Use Cash Apps

With online sales exploding during the COVID-19 pandemic, small businesses that use cash apps such as PayPal, Zelle and Venmo must now report single transactions with a minimum taxable amount of $600 – that’s all the way down from $20,000 under the TCJA. 

The rule was passed this year and will go into effect on Jan. 1, 2022. The rule only applies to business transactions, but it could, in many cases, increase the taxes on money that small businesses make from online sales.

“The tax does not apply to friends sharing a bill after dinner, rent payments, or other personal payments,” said Tompkins. “The main purpose of the law is to bring about transparency when it comes to accounting for the deductible expense. This will be specific to business-related payments. Individuals making personal payments to each other need not worry.”

Small Businesses Being Inherited

Under one of Biden’s proposals, small businesses – including family-owned businesses worth $1 million or more – could be taxed by as much as 40% upon the death of a business owner. Even if the business is not sold and passed down to a family member or other successor, this inheritance tax would apply. 

Biden’s argument for this is that it would help level the playing field between ordinary workers just entering the workforce and young people inheriting highly profitable businesses from their patriarchs (or matriarchs), and would only apply to large companies. The plan is part of the Reconciliation Bill (part of the Build Back Better Act) being debated in Congress.

Biden, however, is getting heavy resistance, even from members of his own party, including former Senator Heidi Heitkamp. Heitkamp has publicly argued that the proposal would hurt small businesses, especially family farms. 

“I’m trying to sound the alarm, both economically and politically, for Democrats that this is not a path to walk,” she said in a public statement. “The disruption that it would create for small family businesses, farmers and family assets is not worth the pain.”

Small Businesses with Foreign Sales

The current tax on goods and services purchased from overseas customers (foreign derived intangible income) is 13.125%, but that number could be increased to match the 15% global minimum tax rate  that 130 countries so far, including China and Australia, agreed to impose. 

According to a poll by the National Small Business Association, 64 percent of small companies sold products or services to customers abroad in 2020, and the number of organizations that have not yet sold overseas – but are considering doing so – is 63 percent, so a change to the FDII tax rate could impact a large number of small businesses. 

Crystal Stranger, international tax director at GBS Tax, said small businesses that have overseas customers should watch out for potential changes to the FDII.

“The FDII discount has come under pressure from the Organization for Economic Cooperation & Development (OECD) as creating a tax shelter for companies based in the US,” said Crystal Stranger, international tax director at GBS Tax. “The current effective tax rate when applying FDII is 13.125%, which falls below the target 15% global minimum tax rate, and as such this likely will be decreased to fall within that range. Also, it appears the types of sales this is applicable to could be narrowed somewhat, based on the House bill’s provisions.” 

Talk to Your Accountant

Keeping up with potential new tax rules and how they may affect you can be tricky, so it’s important to stay in touch with your accountant. Any reputable accountant will keep up with the latest news on tax regulations and new rules from the IRS. It is up to you, however, to have your accountant keep you apprised of the latest deductions, rules and laws that may affect your bottom line when the tax man comes around.

Labor Day Picture with American Flag.

What is the Best Way to Celebrate Labor Day? Learn to Avoid Burnout

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Labor Day is for celebrating the American worker, and of course, there are few Americans who work harder or devote more hours to work than small business owners. Although small businesses account for roughly 61% of America’s workforce, many owners of small businesses – such as restaurants or car dealerships – won’t be getting the day off this weekend because of the nature of being a small business owner.

Ironically, many people become small business owners because they want to set their own hours and be their own bosses. Most of them, however, are hit with a harsh reality when they set their dreams into motion – although their intention was to run a business, the business soon begins to run them. 

While the work ethic of the average small business owner is commendable, it can be extremely unhealthy, as it can lead to emotional distress, poor sleep habits, obesity, poor eating habits, mental and physical exhaustion, and frayed relationships with family members and loved ones, among other things.

So how do people cope with the long hours and stress of running their own successful enterprise while keeping their sanity, as well as their personal lives, together? This Labor Day, Kapitus reached out to everyday small business owners for answers and tips. 

Develop a ‘Work/Life Balance’ Mindset

Before a small business owner can even embark on setting a plan to balance work and personal life, they must adopt a certain mindset that there’s time for work, and time for play. Separating the two can be extremely difficult – after all, your small business is the way you make a living and support your family. 

Much like giving up a bad habit, however, obtaining the discipline to mentally check out of work during non-work hours is hard and may take months or years to develop, but it will be well worth it for your physical and mental well-being. 

“You need to make it an intention to change your role and your involvement in your business,” says Paul Cantrell, CEO of consulting firm The Business Superstars. “Set a goal that in one year you want to be working an X amount of hours per week, for example. Then figure out what you will need to do to help make that happen. If you don’t work toward that, nothing will ever change.” 

Viktoria Krusenvald, co-founder of health and lifestyle website www.zerxza.com, told Kapitus that she began to burn out from the work of creating and operating her site, and had to train her mind to “shut off” from work.  

“Due to health concerns, I started forcing myself into creating healthy habits – and yes, I’m saying ‘forcing’ myself because it took a lot of effort to actually convince my mind to NOT focus on work all the time,” says Krusenvald. “The first step to create a healthy work/life balance is to calm your mind and convince yourself to let go of work a bit – to take some distance.”

Just Say No to New Business

Some small business owners told Kapitus that one of the keys to achieving work/life balance and avoiding burnout is saying no to new business. Of course, that’s usually the antithesis of the mindset of most small business owners, who are often always thinking that they need more business. No matter what type of business you are in, however, bringing on new business when times are busy may cause you to take on an unrealistic workload, which can lead to burnout. 

“With the mental health awareness going around, people have started using the tag of ‘fully booked’ at times when they feel they might not keep up with the orders,” says Leonardo Gomez, founder of dog toy maker Try Runball. “This has also helped them produce quality products and services for they had enough time to dedicate to each order. You can always close the shop for a couple of days and take a break as well.”

Catherine Nguyen, who runs her own photography business, says that sometimes saying “no” to new business is a good way to avoid burnout.

Catherine Nguyen, who owns her own photography business, adds, “As your business grows, you will find that customers start coming to you rather than you having to chase them down. When this happens, your instinct will be to say yes. After all, you’ve worked hard to get new business. Learn to say no when you are overextended. People who really want to work with you will wait for your next available time. If you say yes to everyone, you are doing yourself and your clients a disservice. Things will inevitably start falling through the cracks and become even more stressful.”

Set Boundaries Between Work and Life

One of the most difficult things to do for small business owners is setting firm boundaries between work and non-work time, as smartphones, tablets and other devices can constantly keep us plugged in wherever we go. Therefore, small business owners need to do for themselves what most parents do for their children: block out periods when it’s time for work and when it’s time for play. Unlike children, however, it’s the work time that small business owners need to pry themselves away from. 

One way to set firm boundaries between work and rest time is to turn off electronic work devices so that you’re not finding yourself checking your email or working on a document on your phone or tablet. 

Sam Dolbel, co-founder of Sinc Business, says it’s important to turn off your electronic gadgets when you’re not working.

“I always make it a habit to steer away from my work cell phone and laptop during off-work hours,” says Sam Dolbel, co-founder of Sinc Business. “Because when I do, I tend to check and respond to work emails, read industry and business trends on LinkedIn, and think about work instead of rest. Those practices could eventually lead to work stress and burnout, and being burned out isn’t helpful when you’re running a business. What’s also good about steering away from those gadgets is that it grants me more time to focus on my physical health and social relationships.”

Some small business owners warn that you need to be firm in sticking to your non-work hours. “I create arbitrary walls based on time with my family that cannot be breached apart from exceptional circumstances,” says Patrick Devaney, editor-in-chief of Helpful Chef. “For example, my wife works on Saturdays, which means Sundays for me are non-negotiable. If there are tasks that need doing on a Sunday they need to be delegated or delayed, unless it is an emergency.” 

Delegate, Create Physical Spaces

During the pandemic, working from home became the norm, and while this arrangement made it easier for American workers in many regards, it can also blur the line between work and off-hours because you are literally living where you work. 

Tim Sutton, founder of Coffee Geek TV, suggests physically separating work and non-work spaces in your home. 

“Since your workspace and living space are essentially the same, your mind can’t turn off as the sign isn’t as clear as leaving the office,” says Sutton. “The best practice is to create a designated workspace and break area to separate them mentally as well. For example, the desk is for work and the bed is for rest, so do not bring work to bed.”

Lauri Kinkar, CEO of Messente, emphasizes that it’s important to delegate tasks to trusted employees so you, as the business owner, don’t get swamped. 

“It is also essential to set clearly defined work hours per day,” says Kinkar. “Determine which days are your day-offs and stick to them. Having a schedule and adhering to it will help you have boundaries between your work life and personal life…Give yourself a break and remember that taking care of your well-being is essential in making your business successful.”

Take Daily Breaks, Maximize Time With Family

Other small business owners stressed the need to make time each day to exercise, taking breaks and spending quality time with your loved ones. 

“I make it a point to step outside multiple times a day to take in some fresh air. Whether it takes the form of meditation, reading, or simply setting my phone on silent,,” says Benjamin Farber, president of Bristol Associates. “I also schedule designated ‘quiet’ time as a form of self-care.” 

Jaclyn Strauss, founder of My Macro Memoir, emphasizes the importance of maximizing family time as a way to avoid burnout.

Jaclyn Strauss, founder of My Macro Memoir, stresses daily meditation and being there for family as a way to avoid burnout.

“Every night, I am deliberate around being present at bedtime with both of my children,” says Strauss. “My son is nine years old, and my daughter is six. My son and I reflect on our days as we lay in bed together and talk about the highs from the day. With my daughter, we play a game called I LOVE. We take turns sharing the things we love most about each other until she is ready to drift off to sleep. Also, every night, I use a meditation app to unwind and clear my mind, and most nights do fall asleep before the guided meditation is over.”

In all, running your own successful business can be the most rewarding professional challenge of your life, but it’s important not to allow your business to consume you. In order to prevent yourself from having a stress-related breakdown, make sure you’re scheduling some time off for yourself; take breaks during the day; set boundaries between your work and personal life, and make sure to set aside time for family members and loved ones.

Doctor with a patient as Kapitus discusses best medical practices.

What Independent Medical Practices Need to do to Survive

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Even before the COVID-19 pandemic hit, independent medical practices were in critical condition as large hospital systems implemented cost-effective, value-based care systems and hoarded patients’ medical histories – moves that forced many independent physicians who couldn’t compete to give up their practices and join them.

Contrary to popular opinion, independent medical practices were not immune to the effects of the coronavirus pandemic, as patient visits and needs for services plummeted. According to the American Medical Association, 2% of primary care practices closed and another 2% considered bankruptcy at the end of August 2020.

So how are independent physicians supposed to prevent themselves from becoming W-2 employees in the wake of competitive challenges posed by large hospital systems, as well as the task of finding new patients as the pandemic winds down? Here are some tips for survival, based on our conversation with Marni Jameson Carey, executive director of the Association of Independent Doctors, and data from the AMA. 

Merge Your Practice Due to the Threat of Value-Based Care

  • Perhaps the most important action an independent medical practice can take is to merge or form a strategic alliance with other independent practitioners in order to spread the risk posed by value-based care – a system designed to lower the cost of healthcare by charging patients for outcomes rather than service. 
  • In such a system, insurance companies as well as the Center for Medicare and Medicaid Services (CMS) set standards of payments to doctors to incentivize them to keep costs down by cutting redundancies in treatment, offering pre-paid bundled services packages to patients for cancer care and surgical procedures, and focusing on preventative care. If doctors go over the stated annual amount, then the cost of treatment must come out of their pockets. In short, doctors are rewarded and paid to keep patients healthy year-over-year, rather than paid for services rendered. 
  • The Healthcare Payment Learning & Action Network, which was established by the CMS in 2015, aims to have 100% of providers in the US participating in value-based contracts by 2025. While value-based care has become the wave of the future in medical care, it has become the biggest threat to the existence of independent doctors, who may not be able to afford to offer discounted services, said Carey.
  • Large hospital systems that own a network of salaried physicians are in a better position to offer value-based care because of their economies-of-scale, said Carey, and that makes it harder for independent practitioners to keep up.

Marni Jameson Carey, executive director of the Association of Independent Doctors, says that independent doctors should band together to offer value-based care.

“I have a problem with value-based care philosophically because smaller practices tend to have established patients, and as doctors get older, their patient bases tend to get older and sicker, not younger and better,” she said. “So, as a doctor, I’m now being measured against my prior year, even though my patients are getting older and sicker, and I’m doing my best. Value-based care goes against the grain of the idea that every year you have to do better than the year before, when natural evolution tells us that people get older and eventually die.” 

The answer, she said, is for independent practitioners, be it primary care physicians or specialists to “Ally with other independent doctors and share risk as a consortium, but still stay independent,” she said. 

According to a recent article from the Advisory Board, a physician advocacy group that promotes equity in healthcare practices, “As care delivery becomes more complex and value-based arrangements require more upfront resources, very small practices are more likely to struggle financially and be aggregated by larger entities. This may mean hospitals, yes, but it doesn’t only mean hospitals. In fact, many independent physicians are acting as aggregators themselves—buying up struggling practices and offering models that appeal to these fiercely independent shareholders.”

Independent doctors should know that acquiring another practice in order to scale up business may require financing. In such a case, physicians should consult with their accountants as well as seek financing from either traditional lenders or alternative lenders such as Kapitus, which offers Helix Healthcare Financing – lending specially tailored for independent healthcare practices. 

Make Healthcare Records Portable 

Electronically Updating the medical history of patients is the bane of most doctors’ existence, because it involves hours of tedious paperwork and filling out forms. To add to that frustration, independent doctors often have to deal with the fact that their expensive electronic health records (HER) systems are not compatible with those of the hospitals to which they refer their patients. As a result, hospitals don’t know their patients’ medical histories and order duplicate tests and perform redundant procedures. 

“This is one of the ways hospital systems try to encourage independent doctors to join them and become employed physicians, so that they don’t have to invest in electronic health record systems that may become obsolete,” said Carey. “Hospitals like to own patient data and freeze out other providers not within their system so that they capture patient share and make it hard to share the data with doctors who might take business from them.” 

The answer to this, she said, is for independent doctors to adopt an EHR policy that makes it easy for patients to have access to their own medical history – something many doctors are afraid of doing out of fear of violating the Health Information Portability and Accountability Act (HIPAA). 

“If you look up the HIPAA laws, it’s not about patient privacy, it’s about the patient’s access to information,” said Carey. “The law has been misconstrued to mean that patients can’t even have access to their own information, and that isn’t true. The patient should be able to have the data, so when the patient goes to the hospital or a specialist the patient has the information with him or her, whether it’s on a thumb drive or on a smart phone. So, the answer to this is to make sure patients have access to their own records and to sure information isn’t siloed by hospitals.”

AthenaOne Electronic Health Records Software

For independent doctors who are still using paper files to store patient records, adopting EHR software should not be a difficult task. Some of the most popular EHR software systems out there include AthenaOne and RXNT.

Make Telehealth a Featured Part of Your Business

Even before the nation went on lockdown due to the coronavirus, health insurance giant Kaiser Permanente revealed in 2018 that slightly more than 50% of doctor visits by its participants were through telehealth, and that the number of telehealth appointments shot up by 3700% from 2019 to 2020. The bottom line is that telehealth marketing is here to stay, especially in rural parts of the country where a trip to the doctor’s office may require a long drive. 

“I’ve been told by our doctors that they are doing telehealth visits over their phones and over Zoom, and that they bill for the service and it isn’t complicated,” said Carey. “I know there are companies out there that want to make it complicated and want to sell expensive services, but this really isn’t a technology issue. I do know that you can’t just run around doing telehealth visits, that you need to be an established patient with a practice before that provider can do a telehealth visit with you and determine whether a telehealth visit would be appropriate.”

Make Prices Transparent

Several states have passed laws requiring medical practices to inform patients of the price of their services before they are rendered. This prevents patients from receiving billing surprises after undergoing surgery or another medical procedure. The patient may believe that the surgery is covered by insurance, only to find out afterwards that one of the specialists involved in the surgery, such as the anesthesiologist, for example, may not accept insurance and receive a bill for thousands of dollars for that service. 

States such as New Jersey, for example, have passed the Out-of-network Consumer Protection, Transparency, Cost Containment and Accountability Act in 2018, a law that independent New Jersey doctors claimed threatened their survival because it allows consumers to also seek an outside arbitrator to determine whether the cost of medical services are reasonable. 

Carey said that despite the initial objections to these laws, price transparency among independent physicians – even ones that do not accept insurance – is necessary to ensure their survival because it encourages competition among physicians as well as hospital systems, which inevitably will drive down prices of medical services. 

Automate Where you can 

Some independent physicians are still stuck in the dark ages when it comes to technology but should automate some of their systems with software to make their lives easier and give them more time to spend with patients. These systems include automated appointment reminders, patient intake forms and billing – systems that large hospital systems already automate themselves. 

In summary, survival may not be easy for independent medical practices going forward, as large healthcare systems continue to gobble up small practices. Following steps for survival such as partnering with other independent doctors and keeping up with technology can prevent an independent doctor from becoming a W-2 employee.

Doctor typing on his tablet, wears a statoscope.

Why Building A Healthcare Branding Strategy Is Crucial For Your Medical Practice

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As an independent healthcare practitioner, 100% of your focus is, of course, on providing your patients with excellent, personable care. 

While you are taking care of your patients, however, how will new patients learn who you are or what makes you special as a practitioner? In other words, if you’re not focused on the healthcare branding for your practice, how do you expect it to survive going forward? Given that the COVID-19 pandemic is not yet over and the Delta variant is on the rise, how will you convey your expertise to current and potential patients on how to best protect themselves and get vaccinated? 

“Independent practitioners typically need healthcare branding the most, yet they are historically the least likely to engage in it,” said Mark Macias, founder of New York-based MACIAS PR, a  public relations firm specializing in healthcare. “More than likely, I suspect it’s because they don’t have the time to devote to this side of the business practice.”

What is Healthcare Branding?

Essentially, healthcare branding is the message that your practice delivers to new and existing patients telling them what differentiates your practice from others. Without this message, new patients won’t have a reason to choose you as their medical practitioner. Web-based testimonials and media interviews, for example, can help spread your message and showcase you as an expert in your field.

“Healthcare branding is a type of marketing approach that gets your product and services directly in front of patients,” said Macias. “It doesn’t matter if you’re selling a service directly to patients or providers, creating a brand is critical to business growth. Without it, patients have no way of finding you.”

Fabiana Melendez Ruiz, a senior publicist at Austin, Texas-based marketing and branding firm Zilker Media added, “Healthcare branding is essentially the same as any other kind of branding. You want to OWN your image so have a website that delves into what you, as a practitioner, can offer in addition to your practice.”

Why Do You Need Healthcare Branding?

Essentially, you need branding so that existing patients keep coming back and new patients have a reason to choose you over other doctors. 

A critical component in branding for your practice is having a web presence, say healthcare PR professionals, as most consumers will initially search online when they need a doctor. It is important that your practice has a robust, user friendly website, and that your site will appear in searches. 

“Here’s why you can’t overlook healthcare branding and digital marketing,” said Macias. “If you’re a patient and need to see a specific physician or dentist, you’re probably going to search online for help. Gone are the days when you ask a neighbor or friend for a reference. 

“Instead, most of us go to Google or another favorite search engine. If you don’t appear in that search engine, your brand effectively doesn’t exist. That is why it’s so crucial to engage in healthcare branding, and digital marketing. You need to make sure the name of your company appears in front of patients as they are looking for a physician or other healthcare practitioner.”

What are the Components of Healthcare Branding?

Macias said that media interviews, a blog and promoting your practice on social media are crucial elements in differentiating your practice from competitors. Additionally, public service announcements (PSAs), especially surrounding the pandemic, are especially important in letting your patients know that you are on top of the current trends in medicine.

“There are many aspects to building a brand on the web,” said Macias. “Today, you can build a brand much faster on the web. Gone are the days when you would publish an advertisement in the local newspaper or monthly magazine and hope the ads would deliver new phone calls. Today, you can get in front of patients and consumers who are directly researching services that you provide by leveraging the media, blogs, editorials and social media.”

Ruiz said that healthcare branding should consist of a website “that includes a media-friendly bio for the practitioner that offers credentialing information, a list of services, a media page with any earned media and a PR contact and then a general contact page with ways patients can reach the practitioner.

“For medical professionals it is important to stick to facts, but the delivery may be different. As a marketer I always recommend a blog to drive SEO to the website, but other practitioners may be more interested in Instagram and Tik Tok so they may include a feed that updates when they upload to these sites.”

How do I Execute a Healthcare Branding Strategy?

Both Macias and Ruize agree that there are several steps to executing a successful branding strategy, but they all center around storytelling. What is the story of your practice? What makes it unique? Why should patients choose your practice over others?

“This is where healthcare branding gets a little more nuanced,” said Macias. “The initial step for me involves story telling. What is your story and why are you the best healthcare practitioner in your space? It might sound like bragging, but it’s not. 

“Healthcare is a cluttered space and to gain media traction, you need to understand how you are different from others. What is your specialty that should drive patients to you? That should be a component of any healthcare branding campaign. 

“Location also matters. If you want to drive patients to your physical office, that requires a different approach than a practitioner who can work virtually or remotely with patients. But at the root, storytelling is the key to any successful healthcare branding campaign.”

While branding may not be at the forefront of your priorities as a healthcare practitioner, a strong branding campaign is important to your survival. It is critical for your current and potential patients to know and understand what makes you the best doctor for them, and what makes your practice special. Not engaging in healthcare branding could very well leave your practice in critical condition down the road.

Laptop and a desktop lamp on the table with clipart image of the globe.

What Kind of Website Do I Need, Are Websites Worth It?

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Now that you’ve decided to build a website for your small business – congratulations. Your company will receive more visibility, better branding, and eventually more sales.

Before you build your site however, there are several questions you’ll need to answer in order to to determine if you should build a site through a low cost, do-it-yourself website platforms such as Wix, SQUARESPACE or GoDaddy, or make the significant investment in building your own robust website:

  • What products are you looking to sell on your site, and how do you plan on selling them?
  • Are you selling subscriptions? Will the purpose of your site be to make appointments for people to come into your brick and mortar business to buy products or services? 
  • Are you seeking to sell products directly through your websites via online payments?
  • Do you plan to feature industry content or a blog on your site?
  • How will your site stand Apart From Competitors?
  • What Actions Do You Want Site Visitors to Take?

What Should Your Site Accomplish?

Now that you’ve answered those questions, you essentially have two choices: You can use a DIY website platform, which does have its advantages – most of them charge a low monthly fee; provide an easy-to-use website template, and provide web security and basic analytics. This may be the best option to choose if you’re simply looking to expand your presence and just check off the “web presence” box for your business. 

For example, if you’re an independent restaurant owner who wants visitors to use your site to make reservations, or a car dealership owner who wants your site visitors to make appointments for test drives of your vehicles, then a DIY site may be the best choice for you.

DIY platforms do have their drawbacks, though. Almost all of them charge additional fees if you look to add features to your site, and many of them will ask for a large percentage of your revenue if you are seeking to use your site for direct sales. Additionally, the web template that you choose may be being used by other customers, so your website may not look unique.

If you want your website to do more, however, such as accommodate direct sales of your products, offer sales or discounts, or generate industry buzz through a blog page, then building your own website is probably the best bet for you. 

Be warned, however: while building your own site will be well worth the effort from a sales and marketing standpoint, it will be a long, arduous, and expensive process, and one that will require you to first analyze whether it will be worth the money to do so. 

Figuring Out if it’s Worth it

Now the question becomes: based on your wishlist for a website, is building a site worth the money? The answer to this question is paramount in deciding whether to invest capital into building your own site. The process of answering this question is also a bit complicated and may require you to hire an outside web consulting firm to assist you. 

 

The first thing to do is to figure out the cost of building a website. A basic laundry list of things you will likely need to spend money on in order to create your own site can include:

Do some research to find out the fees of website consulting firms and the market price for a web designer/programmer, if you choose to hire those. In order to house your website and make it available to the public via the world wide web, you can either purchase your own server – the machine that will house your site and may cost upwards of $1,000 – or hire a website hosting platform such as Bluehost or HostGator for a low monthly fee to house your website for you. 

There are many advantages to using a web hosting service – you won’t have to pony up the cash for your own server, and they provide web security for your site. Keep in mind, however, that a hosting platform will charge you the monthly fee for as long as your business’ website exists (which could be up to $60 per year), and there could be add-on charges if you look to make changes to your site.

In addition to hosting costs, leasing an original domain name through services such as GoDaddy, Domain.com or Name.com can cost anywhere between $20 to $50 per year, on average; and purchasing a domain name outright could cost you thousands of dollars.

Other costs to consider: If you do not have expertise in building a website, you may want to hire an experienced web designer/programmer to help you. Hiring an outside firm or an internal employee to do this may be expensive but making a mistake in building your site could be even costlier. Also, you will need a payment processing app to enable your customers to purchase items from your site. Apps such as Merchant One, Clover or ProMerchant will enable them to do that.

Estimating Your Site’s future Revenue

Now that you have an idea of the cost, the next thing you should do is have your website consulting firm assist you in creating a general, one-year projection of revenue for your site, since the process can be complicated. Some lenders may ask for this if you look for financing to build your site.

Of course, we all know that a general calculation of ROI is income minus cost divided by cost, but how do you calculate that if you don’t know what the actual revenue of your site will be? 

While it is impossible to calculate exactly what the revenue will be, you can make a rough estimation by examining the benchmark for similar-sized companies in your industry. The web consulting firm you hire should have data on this, or you can use an online tool called Similarweb, which tracks that. You can also use a web service called Unbounce, which can give you a benchmark conversion rate – the percentage of visitors of an ecommerce site who end up becoming customers. 

“This way, you’ll have an idea of what to expect in terms of revenue,” said Lucie Loubet, director of digital marketing at web design firm DesignWare. “Just remember to look at the paid vs. organic traffic breakdown in Similarweb to understand how much additional money you will have to invest in customer acquisition.”

Dawid Zimney, product manager at web consulting agency NerdCow, added “Your web agency needs to know your conversion rate, your market and your audience. They need to benchmark this against the historical improvements of the conversion rate on their clients’ websites.”

Another marketing term to know is customer lifetime value (CLV) – the estimated value of a return customer. For example, if you own a restaurant and you see certain customers coming back because they love your food, or a retail clothing store and you see customers returning for the service, you can calculate the average amount they spend per visit and multiply that by the number of times they visit your business. 

The website firm you hire can help you estimate the percentage of customers who will become repeat customers, as well calculate their CLV.

 

Final Calculation

Nikita Chen, founder and CEO of item authentication firm LegitRails, said the final step in calculating your website’s future ROI is to multiply the number of estimated customers with the CLV, and then determine whether that number is greater than the cost of building the website. The web marketing firm you hire should help you with that. 

“If the number is higher, you are in profit, and it is, therefore, a good idea to create the website,” she said. “If the number is lower (which could be the case if you’re running excessive ads) it might not be in your best interest. The figure you come up with at this stage will also determine your ROI,” said Chen.

Financing Options to Pay for Your Site

If you’ve realized that your needs require you to build a custom website but you don’t have the cash on hand to pay for it, that’s okay. There are several financing options you can choose from. 

A business line of credit may be a good option for you since building a website will not be a one-off expenditure. A business line of credit – much like a personal credit card – will give you the flexibility to spend as you go along in the process of building your site, and you will only be charged interest on what you borrow. You can also pay it down as you go along.

If you’ve predetermined a budget for building your site and plan to stick to it, then a business loan may be right for you. If you go to a traditional lender, they may ask you for a business plan or projected ROI on your website. Alternative lenders such as Kapitus will generally just ask to see your company’s revenue history and approve you for financing more quickly than a traditional lender.

Test Your Site First

Now that you’ve decided to go ahead with your site, you should have your web designer/programmer build a test site, typically referred to as a beta site. Pick the top functionality of your site, have your programmer design and build it, and release it online. The beta site should be a limited release of your website with the goal of gauging audience reaction a nd finding bugs before the final release of your site. 

The site is usually opened up to a limited number of users, such as employees of your company or friends or family. The idea of the beta site is to listen to their feedback and use that to make improvements or adjustments to your final website. 

Next Up

“If you build it, they will come…”

Now that you’ve done the calculations and figured out that building your own site is worth it, how do you build a site that is visually appealing, user friendly and will generate additional sales? In the next article, we will discuss what your site should look like to make that happen.

Does My Small Business Need a Website?

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