News of the General Data Protection Regulation (GDPR) has been floating in our peripherals since it was passed by the European Parliament back in 2016, but as of May 25, 2018, the privacy-focused piece of legislation will finally go into effect. And, though it’s specifically designed for those in the EU, American business owners are not exempt from impact. As an American business owner with your own set of privacy rules and regulations to contend with, the GDPR may not seem like much of a concern. However, since the regulations impact all organizations that process or hold EU customer data, any American business that falls into that category (i.e., businesses that have a web presence and/or sells their products to citizens within the EU) will need to comply. You’ll note that “web presence” was included, not just the notion of selling products or services. That’s specifically because of stipulations that focus on the collection of personal data, not just monetary transactions So, any organization that collects identifiable information (PII), which includes social security numbers, phone number, salary, race, marital status, military rank or civilian grade, age, medical records etc., from EU citizens will need to be in compliance. Top GDPR Takeaways for Small Businesses You know what the GDPR is, generally, but what specific things will be required of businesses? Here are a few of the most significant regulations and considerations that you’ll need to take into account if you want to be in compliance. Seventy-two-hour breach notification:  Just like it sounds, any organization or company that detects a customer data breach must notify the national authorities within seventy-two hours of that breach, and in some cases, customer notification must also take place. Consent for data is a must: Companies and organization must obtain explicit and informed consent when collecting and/or processing data from individuals, even if it’s something as simple as an email list. Explicit consent should be used if an organization wants to validate the sensitive data for use. Additionally, the consent must be achieved with a clear affirmative action, which means that those companies can no longer use “opt-out” or pre-checked boxes to achieve that consent. Further, consent requests must be separate from terms and conditions; cannot, in most cases, be a contingency for signing up; must be granular or designed in such a way that consent is specific to each type of processing; and named, meaning the individual must be made aware of what organizations or third-parties rely on that consent. Finally, organizations must document the aforementioned consent, including the specific consent requested/provided and when that consent took place, individuals must have the right to withdraw their consent at any time, and organizations must provide information about how an individual can withdraw their consent as well as an easy path to do so.   The right to be forgotten: organizations and businesses must comply with a request by an individual to “be forgotten” or to have a copy of their data.  Though simplistic in theory, the right to be forgotten will require that all organizations be able to delete not only primary data but also any data duplications, be they due to operational processes (i.e., cloud storage backup) or unspecified employee lead duplication.  This will require universal conversations and policies among all departments and employees who can access, copy or otherwise maintain customer data. Any data processed for a child under sixteen is considered unlawful if there is no prior parental consent; however, states within the EU can opt to reduce that age, with 13 years of age representing the cutoff. The aforementioned are just a few of the more specific requirements that business owners must meet if they want to become compliant with the GDPR.  Some of these requirements may take a few weeks (or months) to plan and execute, and so, as mentioned above, it’s best to start as soon as possible if you haven’t already. To get started, or make sure your efforts are aligned with expectations, considering the following steps. Analyze your current data processes; this includes how you obtain data as well as how you process and maintain that data. If you don’t have one already, you should have a Personal Information Assessment (PIA), and in some cases, you may need a Data Protection Impact Assessment. Work with your legal department to fully understand and address the GDPR requirements (like the DPIA; however, efforts should extend past legal departments or consultants and include contact with multiple departments, including IT, Marketing, and Finance, as many are directly involved or involved. Create a plan, not only for immediate compliance, but for long-term data procurement, management, and processing.  The end result should be a data privacy and security plan that can act as guidance for the future operations as well as documentation for compliance. Companies that don’t comply (or document that compliance) with the GDPR face substantial fines of up to four percent of global revenues. And while that amount can be damaging to any organization, small businesses that depend on every cent may suffer the most from non-compliance. During the next little while, your time will be especially precious as you work to ensure your business is compliant. The average business owner spends 33 hours applying for credit, you can save that time by checking with Nav. If you’re not currently compliant and the May 25th date is giving you anxiety, take a deep breath. Garnter, Inc. suggests that by the end of 2018, more than fifty percent of American businesses will be non-compliant.  Of course, that doesn’t mean that herd mentality will protect you from non-compliance in the event of a data breach – we all know how frequent they are these days.  For that reason, it’s important to address the issue immediately and take the steps required to meet GDPA requirements More from Nav The Best Small Business Checking Accounts Your Ultimate Guide to Small Business Loans What Is Cash Flow This article originally appeared on Nav.com. Jennifer is a alum of the University of Denver. While in the graduate program there, she enjoyed spending time identifying ways in which non-profits and small businesses could develop into strong and profitable organizations that while promoting strong community growth. She also enjoys finding unique ways for freelancers and start-up businesses to reach and expand their goals. More by Jennifer Lobb

Experian Business Information Services has been honoring Veteran Entrepreneurs in the month of May on the Small Business Matters blog featuring a series of posts highlighting military veterans who went into business for themselves. We asked them about making the transition from military to small business, what challenges they faced, and how their career in the service prepared them to run their own small businesses. A common thread among the veteran entrepreneurs we’ve interviewed for this series is family. They came from a military family, they built a family with those who work in their business, or they left active duty to spend more time with their family. To these veterans, it is an honor and duty to serve their country. They show the same commitment and respect to those closest to them. With a family legacy of military service, entrepreneurship and a “passion to serve”, this veteran honors his heritage by sharing his story, starting with his father’s choice to join the Army. In his late teens, Blake Vaughn’s father was involved in a deadly bar fight. When he was given the choice to go to prison or join the Army, he chose to serve. He left the military early to take care of his ailing parents, and, after his parents died, he took in his siblings as well. He soon started his own family and worked for the post office before going into business for himself. In 26 years, he grew his business from nothing into a multi-million-dollar company. Between the 2001 recession and a divorce, the family suffered multiple setbacks, including foreclosure on their home. After the divorce, Blake, still, a teenager, decided he needed to do something to help lift his family out of poverty and help his mother put food on the table. He decided to follow in the footsteps of his father, grandfather, uncles, and brother and join the military. What did you like most about serving in the U.S. Military? “Serving my country and building strong relationships with people. On a personal level, it’s fulfilling to know you’re participating in something greater than yourself. I feel weird and undeserving when someone says, “thank you for serving.” I think of my brother… his vehicle was destroyed by an IED. Thankfully, nobody got hurt. I don’t like to compare the two of us but at the same time, I at least participated in the security of the country. I’ve always had a huge love for our history, values, the Constitution and our country. My wife homeschools our son and part of that is history… so from the perspective of serving in the military, sharing that with my son is cool. The most enjoyable part is the people and the camaraderie. I was a junior officer, so I learned the leadership that comes with that. I’m a big fan of leadership and personal development. As a leader, people don’t care how much you know until they know how much you care. I am more interested in getting to know people first and building relationships and letting them shine. By doing that, I had some excellent relationships with those guys I led. I still have great relationships with them.” What inspired you to make the transition to entrepreneurship? “My father was a veteran and entrepreneur. He was given the choice to go to prison or go to the army after a bar fight. He chose to serve and straightened up his life. He got out and worked for a little while until he decided to start his own business. He built a $12 million business and then lost it after 20+ years. I wanted to serve just as my father, grandfather, several uncles, and brother did as well, but I also wanted to pursue entrepreneurship because I saw the satisfaction that comes from creating something for your family.” Blake worked through college earning his MBA in marketing while waiting to go into the military. Due to delays in his selection process and a government sequester, it took many years before Blake was finally able to attend officer candidate school in the Navy. He served as a gunnery/ordnance officer on the USS CHAFEE in Hawaii before exiting with an honorable discharge into the reserves. In that time, he also married his college sweetheart, whose first husband had passed away and left her with a 1-year-old son. Between his time working through college and after leaving the military, he “bounced around to all areas of business”, working various customer service, finance and hospitality jobs before finally taking the entrepreneurship leap. Tell us about your business. “We started our first business, a restoration franchise in August 2016, handling water and fire damage. Our second business, Patriot Services Construction, started in May of 2017. In our first calendar year, we generated $1.1 million in gross revenue. For our 2nd full year, we hope to close over $2M. We’re also adding roofing to our services.” Blake’s business can be found online here: Restore NTX LLC & Patriot Services LLC What skills from your military career do you apply most often to your business? “Administrative, risk assessment and management, program management, leadership, motivation, inspection, and accountability. It (the military) was extremely grueling work. Only about 2% is cool. The other 98% is mundane repetitive tasks. It can tear you down, so you have to keep focused and motivated to do what’s necessary because if the country calls on you, you have to be ready. I find fulfillment from motivating people and that allowed me to press harder and stay focused. It was a great learning experience for me.” Did you access Government programs to launch your business such as SBA loans? “Yes, we did get an SBA 7A loan for $110K when we first started. We combined that with personal funds and I took on a partner when we started – a guy I know from church named Jeff Lott. We both wanted financial freedom and control of our time. We partnered together to buy vehicles and equipment to launch our business. There’s a book called Rocket Fuel that talks about the combination of visionaries and integrators when building a business. The book is good. I’m a visionary. I look for new revenue sources and he’s the integrator. We compliment each other in business. We’ve found a really good spot. It’s been an excellent partnership.” What is the biggest challenge about being an entrepreneur? “Facing the unknown and taking risks that could cost us greatly. I took away from the military, and my time during training especially, that you’re used to having pleasures in life, being comfortable, and they strip that away… 6 months living out of a backpack. You learn perseverance. You don’t need a lot to live. It allows you to lay it all on the line when you do have challenges. Entrepreneurs, when failure looks like it could happen, they begin to backtrack. Several people I know went back to their corporate jobs. You have to define what is essential and get rid of everything else that doesn’t take you closer to what’s important to you. It’s a challenge… “what if we fail”. Jeff and I didn’t have experience. In our industry, people typically use a direct sales force to get off the ground, build relationships with trade partners to refer work. We tried that and it didn’t get off the ground. Instead of getting scared, we looked into internet marketing instead. We shifted heavily into internet marketing. We have no salespeople whatsoever and 90% of our business now comes from internet marketing.  Creating the right mindset is most important, and being willing to take a risk is part of that. As Grant Cordone says, “Commit first and figure it out later.” We also try to automate our business as best we can, taking advice from Tim Ferris’ 4 Hour Work Week. What is the greatest reward in being an entrepreneur? “Our technicians do hard work and their mindset is serving people, not just making money. It was nice to volunteer a short time in Houston after Hurricane Harvey and tracking through the disaster to help with recovery. We didn’t need to be directed. We knew what to do so we just got to work helping those folks. There’s also satisfaction in creating something important and it’s nice to have more freedom to enjoy life.”

For the month of May, as we head into Memorial Day, the Small Business Matters blog will feature a series of posts highlighting military veterans who went into business for themselves. We’ll ask them about making the transition from military to small business, what challenges they faced, and how their career in the service prepared them to run their own small businesses. Throughout this interview series, it’s become obvious that veteran entrepreneurs, or vetrepreneurs, seem to possess a few similar traits. Whether these veterans were born with these qualities, they were instilled during childhood or they honed them during their active duty service is still to be determined. Veteran entrepreneurs are resourceful leaders and seem to readily adapt to life as a business owner. An Army veteran who recognized his entrepreneurial spirit in high school and needed a job after transitioning from the military, shares his self-described, “dumb luck” story with us. Micheal Crean’s first taste of owning a business was in junior high school. He would buy Little Debbie snacks and sell them to his friends. His parents worked for 30 years in a GM factory, doing the same job every day, something Crean described as “monotonous”, with no complaints. They took their children on family vacations and allowed them to play whatever sport they dreamed. He looked up to them, their persistence and tenacity to do whatever it took to take care of their family. After spending 9 years in military – 4 years at Ft. Bragg’s 82nd Airborne Division on special assignment – Crean felt tired of not being home for his own family. He would go on a 15-month deployment, leaving his wife and baby and come home to a “walking, talking child”. He imagined, after seeing the globe and many different points of view, that he’d do something with his life. He ended up doing something he never imagined. “I had to make a decision of what was more important to me.”   What did you like most about serving in the U.S. Military? “The ability to work on a global level protecting those who could not protect themselves.” What inspired you to make the transition to entrepreneurship? “If it wasn’t for kids, I wouldn’t have been out of the Army. I served and now I wanted to be a dad. It’s kind of a story of dumb luck and needing a job. I interviewed with a company who hires veterans in the DC area. They asked me if I knew anything about computers. I knew I could learn anything I put my mind to… but I also get bored really easily. The government contracting world puts you in a box and you do that job for as long as that contract goes on. This was around 1999. I decided to step out into commercial space. I was valuable because of my leadership qualities. I found myself trying to stay in front of the dot com failure wave. It caught up with me. I was mad and disappointed in myself because I’d given up a military career and now I was on unemployment. A general contracting company offered me a job to tear things down. At the same time, a good friend who worked at collection agency asked me to come build computers and network for them. Another person who was a VC said their full time IT guy left and asked me if I would do it part time. I would do whatever it took to feed my family. My friend at the VC company was doing textile cleaning for high end homes and the White House. Someone wanted me to help build a network. That was around 2001 and it just went on from there. “ Michael Crean started Solutions Granted in 2001 in response to the need for information technology and information security, or cybersecurity, expertise. As someone who fell into the business, he credits his adaptability and resilience with keeping his business going, even through the recession. Solutions Granted helps businesses in many markets and government entities with IT security but also develops new solutions as needed in the ever-changing digital landscape. What skills from your military career do you apply most often in your business? “Logical thinking, crisis management, effective leadership… The things I did in the military – not having running water or eating a meal that comes from a brown plastic bag – taught me to get creative. As a business owner, that really lets me know what’s important in life. I don’t take things that seriously because I know what the military goes through. In my business, what we’re doing is important but no one’s going to die today. The military gave perspective. And adaptability! The military taught me that! How to adapt and overcome in the face of adversity. Entrepreneurs need to have this too. Our business model has changed a couple times through necessity.” Did you access Government programs to launch your business such as SBA loans? “No. No small business loans. No mentors for me. The only idea I had on how to run a business was, to be honest, honorable, ethical, and offer a good service. We’re self-funded. We never needed business loans. We did use lines of credit to do what we do. Maybe my business would be different if I did that.  We’ve been reinvesting in our company along the way. Hiring and growing at a measured pace. I learned the lesson, ‘take care of your soldiers.’ We take care of our employees. One of the largest expenses is healthcare. I pay 100% of my employee’s benefits – and for an employee who’s been with us over 10 years, for his wife and kids too.” What is the greatest reward in being an entrepreneur? “Being around to affect my employees' lives and watching their families grow and prosper. The military taught me, ‘it’s our own free will to say yes’. When you set out to start your own business you must remember that you chose this. It wasn’t forced on you, you chose this. I have three grown daughters and two younger children at home. My oldest daughter started working for me after she graduated college. She runs accounts receivable, order management and accounts payable. I get to recreate time with my daughter, time I lost during deployments. I’m almost 18 years into this. One employee has been with me for 10 years, since age 18. How does life get any better? When I joined the military, I wanted to make a difference. I wanted to leave something for my children, protect those freedoms and enjoy being a kid. I can continue to do this because cybersecurity is such a danger to businesses out there. I guess I’ve traded one battlefield for another.” Is there anything else you’d like to share? “Be passionate about something and be good at what you do. Stop worrying about what’s happening around you to others. When a door opens, don’t be afraid to walk in. The unknown could be the greatest level of success you could not have predicted.”

For the month of May, as we head into Memorial Day, the Small Business Matters blog will feature a series of posts highlighting military veterans who went into business for themselves. We’ll ask them about making the transition from military to small business, what challenges they faced, and how their career in the service prepared them to run their own small businesses. Many veterans are attracted to military service because of world travel and learning opportunities. With permanent changes of station (PCS) and the responsibility of mobilization at a moment’s notice, active duty veterans will likely have visited several other countries before retiring or transitioning from the military. On these assignments, troops will find themselves in unfamiliar territory, unable to speak the language and often surrounded by people and cultures they do not understand. One such veteran immersed himself in the culture of his station in a foreign country and came back to the States inspired to build a business. Raised near Niagara Falls in an Italian/Polish community, Michael Signorelli grew up around good food and already considered himself a “foodie”. When he joined the Navy, he was offered an assignment working with NATO in Naples, Italy for 3 years.  He imagined he would be enjoying a glorified version of the food he grew up eating. He realized immediately that “true Italian food from the motherland is wildly different from Italian American food”. For 14 years, Signorelli worked in administration, finance and personnel in the Navy. For his last 10 years, he was commissioned as a Limited Duty Officer. These assignments instilled business organizational skills and taught him how to train and lead people, skills that would be necessary for his future business. He’s currently running a successful Neapolitan pizza restaurant in Virginia.       What did you like the most about being in the military? “I cherished every single tour of duty because I was able to learn something in every place I went and every job I had. Most of it was good. My approach was to learn something from everyone. Naples was my best tour. Who knew that tour would develop what I would do post-retirement? It would have been something along the lines of Italian food but if it wasn’t for Naples, I wouldn’t have even tried it. My second best tour was Djibouti, Africa. Our goal was to win the hearts and minds of the people to keep Somali warlords from setting up terrorist camps. I saw people struggle and build houses out of rocks – stacked them like you’ve never seen them stacked before…. Because of that time, I don’t like to waste things. It was rewarding and when I think I’m having a bad day or my kids or employees think something is challenging, I bring those moments up as teaching moments. If you don’t have the opportunity to see that, you’d never know. I worked with remarkable people that influenced me and made me a better leader and groomed me to be an entrepreneur. It gave me the tools, the exposure and diversity of the jobs. The Navy prepared me in a way that Harvard Business school couldn’t have. I loved every minute of it. I still interact with people in the Navy.  We work hard but the payback is in experience. You can’t always be compensated in money.” What inspired you to make the transition to entrepreneurship? “Pizza making is a respected craft in Italy. It’s ingrained in their life, runs in their veins. When you show interest, they want to share their story. In Naples, even through the language barrier, I learned ‘survival Italian’ so I could learn everything I could about Neapolitan food and pizza. My lifelong dream was always to open a restaurant. I went through the rest of my Navy career always looking for that pizza. We ended up getting stationed near Buffalo, NY. We missed it so much we tried to get back to Italy, but we couldn’t, so we took a tour in Sardinia.  I learned more about that unadulterated island where farmers and winemakers work into their 60s and 70s…. it’s just amazing. Back in states, we couldn’t find Neapolitan pizza unless we were going to New York City. I decided I’d one day open a Neapolitan pizzeria.” Tell us more about your business. “We decided, after I ended up in VA (after 14 years in the navy), we’d build a wood-fired oven in our backyard. We started cooking pizzas for ourselves, entertaining neighbors and friends. It was great practice. When we started thinking about retirement from the Navy, about 3 years before, I discovered a company in Colorado who was building wood-fired ovens on trailers – like a food truck –  built to last for 10 years. For our $19,000 investment, we could test the market in Virginia to see if Neapolitan pizza would take off. We started doing small catering gigs and the popularity soared. We were requested to do corporate events, big weddings, local city events in the park… The craziness started but we still had full time jobs. My wife was permanent substitute teacher and I was still in the Navy. Evenings and weekends were spent doing these mobile events. It was a great platform and great training. We tested the market and got out of it what we wanted. Then it was time to hang it up in the Navy and enter this restaurant idea. It wasn’t easy to graduate this idea, but we weren’t exposed to Mother Nature anymore. Wind messes up tents or temperatures can ruin a party, but when you’re committed to a private event, you do it. Working in a restaurant was easier but it was a big learning curve. We worked our butts off and plowed to that goal. Now it’s 3 years later. We got rid of the mobile oven – we wanted to keep it but we sold it because the restaurant was keeping us so busy.” Michael and his wife opened Bella Vista Pizzeria in September 2015. What is the greatest thing about being a small business owner? “That dream I had to start a restaurant? I get to walk in that door every day and see it and touch it and live it and there’s nothing more special than that for me. And to be able to give back. I support special programs here locally. It’s great to be in a position to be able to live off of something you created and be able to help people in a small way, like delivering pizzas, one of the most favorite foods in America, on National Pizza Day to a food bank. So rewarding. “ What is the hardest thing about being a small business owner? “In the military, we’re constantly faced with ‘you gotta do more with less’ and ‘get the job done’ mentality. And you usually do get the job done. Then you start your own business and suddenly… remember what I did in the Navy? My job was to be somewhat organized and now I’m having to order food and track inventory. The mobile business was easy for me to track everything and now I’m doing pest control, dishwashing, ordering food from different sources, wine, beer, payroll, and suddenly I was completely disorganized. I woke up one day, 3 months behind in reconciling, leading up to doing my taxes, and I’m in there doing business and making pizzas. I had to learn that I couldn’t do everything. I had to leave some things to the professionals. I freed my time up by paying a fee for an accounting service and payroll service and that lifted an incredible burden on me and allowed me to focus on training of staff and execution of day-to-day operations. I suddenly couldn’t do everything. I was, for the first time in my life, overwhelmed. Of course, my wife helped but we were both overwhelmed. We really loved it, and we were good at it. We had to learn to get good at other stuff or get help with it.” Did you tap any Government programs to help launch your business? “No but I tried to. I banked forever with Navy Federal. I didn’t pursue any venture capitalist or loan programs. I went to the bank I’d went to for years. I first asked for $80,000 to help. They looked at my business plan and they told me no, they’re not a business-centric financial institution. They rejected the $80,000 but favorably endorsed me for a government small business loan with the SBA. SBA came back a month later and said they were unable to back a ‘mom and pop’ restaurant because the rate of failure is too high. So, my loan officer at Navy Federal went back to the folks in D.C and got me a $35,000 loan, which was helpful. I funded a majority of the business out of savings.” Could more be done to help Veterans go into business for themselves? “There are a lot of programs out there – I’ve looked at some – but there’s a lot of bureaucracy. Sometimes it could be made so hard. For me, when I got rejected by the largest government-backed organization, I felt like the smaller programs wouldn’t help.” For fun, can you tell us what makes Neapolitan pizza different? “Did you know that Neapolitan pizza just won Unesco’s Cultural Gift to Humanity? The Vera Pizza Napoletana Association governs that Neapolitan pizza is always done the right way with only fresh ingredients, a certain type of flour, a specific type of tomatoes and cooked in a 900-degree oven for 90 seconds. The crust is charred and the toppings soupy. It’s like no other pizza you’ve ever tasted and it’s not a pizza you can take to go. If you’re ever in Virginia, stop by and give us a try!” Watch Bella Vista's Small Business Story, courtesy of Navy Federal Credit Union

  For the month of May, as we head into Memorial Day, the Small Business Matters blog will feature a series of posts highlighting military veterans who went into business for themselves. We’ll ask them about making the transition from military to small business, what challenges they faced, and how their career in the service prepared them to run their own small businesses. A 2017 Small Business Association report on Veteran-Owned Businesses states that over 2.5 million businesses in the United States are majority-owned by veterans. Nearly all were small businesses, and over half were based out of their homes. While on active duty, many veterans faced situations where they had to be hardworking and resourceful. They’re driven and often fearless leaders who have traveled the world and learned how to work in uncomfortable environments. Many discovered their passion during their time in the service while others found that starting their own business fit their mobile lifestyle. Today we’ll hear from one veteran entrepreneur who drew from her military training to overcome a professional setback, and how the military prepared her to be an entrepreneur.   Sarah Stahl is a mother of 3 children who served in the Army as a Finance Specialist for 3 years. While enlisted she met her husband of 16 years, Daniel, and for the next 12 years, she has been a military spouse. They are still transitioning to civilian life after leaving the military 2 years ago. Stahl discovered her entrepreneurial spirit in high school. She didn’t have a desire to go to college because she didn’t feel like it was a good fit for her. The military was appealing for training and the ability to travel the world. After leaving the military to raise her children, she tapped into her restless entrepreneurial spirit and began creating and selling wedding invitations on the e-commerce site for handmade items, Etsy. Selling on Etsy allowed her to work from anywhere and remain home with her young children. It was a chance encounter through the website that led her to meet the person who would become her business partner. “I had an unusual request for a World of Warcraft wedding invitation, with the bride and groom’s faces built into the invitations. I asked on an Etsy forum for anyone who could help and Merrilee answered.” Together they started taking on personalized requests for wedding invitations and built their first business together, Paper Perfections. As Stahl and her business partner worked closely, and over the internet, they became like sisters. Their friendship led to the creation of their current company, Avant Creative. What did you like best about the military? “World travel & the tight-knit comradery that I have yet to find outside military life. I’m only 36 but my time on active duty (3 years) and as an active military spouse (12 years) I already feel like I’ve lived a whole life. The business venture I’m working on now is a chance to live a second life.” Sarah is also finishing up a masters degree, thanks to her time in the military. How did the military prepare you for entrepreneurship? “I learned about leadership, integrity, and having a DON’T QUIT mentality.” Sarah and Merrilee finally met in person last fall and a month later, Merrilee passed away suddenly. Stahl is still recovering from the loss. Transitioning out of the military, moving to a different place every few years, and running an online business means that Stahl often felt very isolated. “Merrilee was my crutch,” Stahl says, “But I’m independent. I can’t go back to work.” Stahl made the very difficult decision of continuing the business without her friend, “There were 4 of us in total but she knew the other two partners better. Out of necessity, we’ve had to band together to get a hold of things. We’ve had to go through this crisis together so we’re moving towards a partnership.” Business is growing and they’re considering a legal partnership. Although there are still decisions to be made, Stahl is looking forward to growing Avant Creative. What is the hardest thing about being a small business owner? “Probably the fact that there isn't anyone to fall back on. I constantly feel like I'm out on a limb, recreating the wheel. It causes stress in all areas of life and makes me question if what I'm doing is the best path for life.” What is the best thing about being a small business owner? “My schedule. My husband and I have 3 kids and it's invaluable to be able to adjust my work schedule, however, I need to in order to both support and be available for our children.” Did you look into government programs or funding for your small business? “I looked into getting a startup business loan but I’m nervous about funding and interest rates. I’ve been bootstrapping the business, using whatever cash I have on hand. I was looking for funding for a solid brick and mortar, but the debt scares me. I do want to invest in the business and keep growing but I’m not sure if I should go to an investor or get funding. There are still a lot of decisions to be made.” To drive awareness for Avant Creative, Sarah uses social media extensively. She hosts a weekly “Reinventing Marketing” session on Facebook live, where she shares marketing tips and best practices.  She also writes articles and posts videos on LinkedIn where she talks openly about the challenges being an entrepreneur.  Her approach to LinkedIn is to establish a professional brand which leads other entrepreneurs to her marketing services. With young children, a growing business, and finishing up an advanced degree, there’s no question that Sarah Stahl’s time in the military has helped her to step outside of her comfort zone. Hardworking, resourceful entrepreneurs benefit from the military training and experience and Stahl is no exception.

In honor of Women’s History Month and International Women’s Day, Experian took a closer look at the specific challenges of accessing capital for women business owners.

This blog post about the new tax law and the tax cuts and jobs act of 2017 was prepared by author and tax expert, Barbara Weltman for the Small Business Matters Blog. You can find more blogs by Barbara on her Big Ideas for Small Business blog.   With the Tax Cuts and Jobs Act of 2017 making dramatic changes in many tax rules, business owners should be asking themselves how to plan for the future. What do the changes mean for the short term and for the long term? Here are some planning strategies to consider in light of the new law. Revisiting your entity choice The spectacular cut in the tax rate on C corporations from a high of 35% to a flat 21% rate may leave many small business owners, most of whom operate as pass-through entities, wondering if they should become C corporations. Should an S corporation terminate its election to be taxed as a pass-through entity and instead be taxed as a regular corporation subject to the 21% rate? Should a partnership or limited liability company incorporate to become a C corporation? These are great questions and there’s no one right answer for all businesses. Pass-through entities have a special 20% tax deduction that will effectively reduce the tax rate that owner’s pay on their share of business income. And all of the tax rates for individuals have also been reduced. So owners of pass-throughs may see tax reduction. But this 20% write-off is temporary, running from 2018 through 2025. And not all owners will be able to take some or all of the deduction because of various limitations in the law based on taxable income, whether the company is in a specified service, and other factors. Becoming a C corporation has some tax drawbacks. The key one is double taxation, which means that profits are taxed to the corporation and owners pay tax on the same profits when they’re distributed as dividends that are not deductible by the corporation. Bottom line: Changing your entity choice is a decision that affects the long term and shouldn’t be done hastily. Be sure to also weigh the implications of any entity change on state income taxes. Talk with your CPA, attorney, or other advisor about the best strategy for your situation. Reinvesting tax savings in your staff Whatever your form of entity, tax changes may mean lower taxes on your profits. This gives you more cash to reinvest in your employees. At the time of this blog, nearly 200 publicly-held corporations announced their reinvestments in the form of bonuses, pay increases, higher employer 401(k) contributions, funding for employee education, and hiring more employees. As a small business in this ever-tightening job market, it’s essential to address the need to enhance your payroll expenditures to attract and retain valued employees, especially in light of what larger firms are doing. Think about: • Raising pay. Many localities are raising the minimum wage, and you can stay ahead of the curve by increasing pay before the law requires and before your competitors do. • Paying for employee medical coverage (or increasing your share of this cost). If you pay at least half the cost of coverage purchased through a Small Business Health Options Program (SHOP), you may be eligible for a tax credit to defray some of your costs. Alternatively, if you aren’t subject to the employer mandate under the Affordable Care Act, you can use a special plan called a qualified small employer health reimbursement arrangement (QSEHRA) where employees obtain their own personal coverage. You reimburse their premiums (up to set limits) and you deduct your cost, but employees aren’t taxed on this benefit. • Paying for family and medical leave. If you give employees time off (whether or not required by law to do so) and pay them at least 50%of their pre-leave wages, you may qualify for a new tax credit. But the credit only applies for 2018 and 2019, and only for an employee earning no more than $72,000. • Adding a qualified retirement plan or increasing employer contributions to existing ones. Employer contributions are tax deductible. For new plans, you may also be eligible for a tax credit to cover administrative costs and employee education for the first three years of the plan. • Offering ownership in your company. Giving employees a stake in the business rewards loyalty and helps retain workers. If you’re incorporated, this can be done through a tax-favored employee stock ownership plan (ESOP). Upgrading and revamping your equipment and facilities The new law made highly-favorable changes in how you can write off the cost of newly acquired equipment and renovations to facilities. These rules apply even if you borrow to pay for some or all of the expenditures. • Equipment. Essentially, whatever you buy—new office furniture, special machinery, computers and tablets—you’ll be able to write off the entire cost immediately. The Section 179 (first-year expensing) deduction is up to $1 million in 2018 (although businesses must be profitable to use it now and phases out for purchases totaling more than $2.5 million). Bonus depreciation allows for a deduction of 100%of cost, and now applies to both new and pre-owned property. But keep in mind that bonus depreciation is temporary; it phases out after 2022 and ends after 2026. • Vehicles. If you buy a new or pre-owned car, light truck, or van, changes to write-off rules allow for greater deductions. For example, $18,000 of the cost of a so-called “luxury” business car (weighing 6,000 pounds or less) placed in service in 2018 can be deducted in the first year. Dollar limits on annual deductions after the first year have also been increased as compared with limits for 2017. And for heavy SUVs (weighing more than 6,000 pounds) that are not subject to these dollar limits, most or all of the cost can be deducted immediately through a combination of write-off rules. • Facilities. If you want to renovate your premises, instead of having to depreciate the cost over 39 years, you may be able to deduct “qualified improvement property” ratably over 15 years. Qualified improvement property is an improvement to the interior of commercial property, other than an elevator or escalator. Bottom line The new tax law presents a number of opportunities for businesses to take actions that will enhance business operations while producing favorable tax results. But there are many moving parts to the decisions on what action to take and when. Again, be sure to discuss your personal situation with a CPA or other advisor. Want to learn more? Come to our special webinar "What Small Businesses Need to Know about the New Tax Rules" taking place on Tuesday, February 27th, 10:00 (Pacific), 1:00 (Eastern.) Barbara Weltman will be going more in-debth on the new tax rules, and Charles McCombs from BBVA Compass will be speaking about equipment financing. It promises to be a very informative session.  

Women entrepreneurs face many challenges that their male counterparts do not, according to a report from Senator Jeanne Shaheen, ranking member of the U.S. Senate Committee on Small Business & Entrepreneurship. The report entitled, “Tackling the Gender Gap: What Women Entrepreneurs Need to Thrive”, takes a deeper look into the underlying obstacles that affect women-led businesses. While women are starting more businesses year after year, their businesses do not appear to grow as quickly or receive as much funding as men-led companies. The report also highlights current statistics, and offers a “promising new way forward” for women entrepreneurs. Women Business Owner Statistics Women have a long history of starting businesses1 and, according to the National Women’s Business Council (NWBC), the highest number of women-owned firms2 are in the healthcare, social services, professional, scientific and technical services, admin and retail industries. Interestingly, the NWBC suggests that women start businesses because of limitations in the workforce, personal responsibilities or the challenges that come from a market that fails to meet their needs3. The study also reveals a positive picture for women-owned businesses: ● 30 years ago, there were close to 4 million women-owned businesses in the United States. Today, there are over 11 million. ● 39% of all U.S. businesses have women majority ownership, employ nearly 9 million people and generate more than $1.7 trillion in revenue4. ● Women are the sole source of income in 40% of all households and outpace men in educational achievement5. ● The number of women-owned businesses grew 45% between 2007 – 2016, 5 times faster than the national average6 ● 78% of new women-owned businesses are owned by women of color7. Even with so much positive news about women-led businesses, in 2016, women received just over 2% of investor and venture capital funding, and women-led businesses made up only 4.9% of VC deals8. Obstacles facing Women Entrepreneurs The Senate report on women entrepreneurs focuses on three particularly unique obstacles: 1. Lack of role models and mentors 2. Gender pay gap 3. Unequal access to funding and venture capital Why Women Need Mentorship Positive role models inspire and offer guidance to entrepreneurs and small business owners. With media attention on male entrepreneurs such as Elon Musk, Mark Zuckerberg and the like, many women lack important motivation that can come from a mentor to inspire them into starting businesses. The Senate’s Small Business report noted: ● Adults with mentors are 5 times more likely to say they are planning to start a business9. ● 62% of high school girls who are mentored on technology are likely choose it for a major in college10. ● Small business owners who have access to mentoring report higher revenues and growth rates11. The Small Business Administration (SBA) offers access to mentorship for women business owners through Women’s Business Centers, SCORE, and Small Business Development Centers. Women entrepreneurs, with more focus on their successes, can help bring more women into business ownership through mentorship and awareness. Addressing the Gender Pay Gap When a woman graduates from college, she may be making only 90% of what her male counterpart is making. Working mothers may also feel the brunt of the gender pay gap as they may not actively be promoted or receive raises at the same rate as men, leading to less potential for high income or executive roles. Few women in leadership roles, missed promotions, and the gender wage gap decreases motivation and ignites frustration among women in business. Not surprisingly, these challenges, and the desire for flexibility, lead more women to start their own businesses. Access to Funding While overall small business loans have been on the decline, the Small Business Administration (SBA) reports 18% of their loans were for women-owned businesses. In 2014, the U.S. Senate Committee on Small Business and Entrepreneurship reported that women receive 16% of all conventional small business loans. The report also showed that when women do apply for loans, they apply for smaller amounts for fear they will be denied. During the search for venture capital, women entrepreneurs may also face: ● Difficulty finding key contacts for funding ● Lack of female investors ● Disparity of questioning compared to male entrepreneurs As many women feel unsupported, unheard, or misperceived, they may not feel confident to seek outside funding to help start or grow their businesses, instead relying on personal sources of income. Looking to the Future for Women Business Owners The National Women’s Business Council contributed positive findings to the report, highlighting women’s efforts to address these entrepreneurship obstacles, including: ● Women have been 32% more successful at raising capital through crowdfunding than men. ● Incubator and accelerator programs level the playing field for women to network and have access to training and financing. ● Entrepreneur ecosystems are being created to help better support women entrepreneurs through government policies, and accelerate their growth. The report also made recommendations to the private and public sector to help support women in business. The recommendations focused on: ● Fair pay ● Student loan repayment programs ● Promoting STEM to girls in school ● Increasing federal funding for SBA’s entrepreneurship programs and incentives for loans to women ● Zero tolerance of sexual harassment ● Media push back against gender stereotypes ● Reducing gender biases in the workplace ● Supporting working mothers The good news is that more business women are speaking out about their own challenges and successes, including several in the Senate report. As more women come forward and talk openly about the gender wage gap, the struggles of starting a business and how they paved their own paths, other women will be inspired to do the same. Related: Experian study: The State of Women Business Owner Credit [1] https://en.wikipedia.org/wiki/List_of_American_women%27s_firsts [2]  https://www.nwbc.gov/sites/default/files/FS_Women-Owned_Businesses.pdf [3]  https://www.nwbc.gov/sites/default/files/NWBC%20Report_Necessity%20as%20a%20Driver%20of%20Women%E2%80%99s%20Entrepreneurship%20Her%20Stories.pdf [4]  American Express OPEN, “The 2017 State of Women-Owned Businesses Report,” (November 2017) [5]  U.S. Department of Labor Bureau of Labor Statistics, “Economic News Release: Employment Status of the Civilian Population by Sex and Age,” (accessed on October 2, 2017) [6]  American Express OPEN, “The 2016 State of Women-Owned Businesses Report,” (April 2016) (online at http://about.americanexpress. com/news/docs/2016x/2016SWOB.pdf) [7]  American Express OPEN, “The 2016 State of Women-Owned Businesses Report,” (April 2016) (online at http://about.americanexpress. com/news/docs/2016x/2016SWOB.pdf). [8]  https://www.sbc.senate.gov/public/_cache/files/2/5/25bd7ee9-a37b-4d2b-a91a-8b1ad6f5bd58/536DC6E705BBAD3B555BFA4B60DEA025.sbc-tackling-the-gender-gap.december-2017-final.pdf [9]  Sangeeta Bharadwaj Badal and Rajesh Srinivasan, “Mentor Support Key to Starting Business,” Gallup (November 25, 2011) (online at http://news.gallup.com/poll/150974/mentor-support-key-starting-business.aspx). [10]  https://www.sbc.senate.gov/public/_cache/files/2/5/25bd7ee9-a37b-4d2b-a91a-8b1ad6f5bd58/536DC6E705BBAD3B555BFA4B60DEA025.sbc-tackling-the-gender-gap.december-2017-final.pdf [11]  U.S. Small Business Administration, “Impact Study of Entrepreneurial Dynamics: Office of Entrepreneurial Development Resource Partners’ Face-to-Face Counseling,” (September 2013) (online at https://www.sba.gov/sites/default/files/aboutsbaarticle/Impact_ Study_of_Entrepreneurial_Development_Resources_2013_09.pdf). [12] https://www.sbc.senate.gov/public/_cache/files/2/5/25bd7ee9-a37b-4d2b-a91a-8b1ad6f5bd58/5 36DC6E705BBAD3B555BFA4B60DEA025.sbc-tackling-the-gender-gap.december-2017-final.pdf [13] Small Business Administration, “SBA Lending Statistics for Major Programs as of 9/30/2016,” (accessed on October 15, 2017) (online at https://www.sba.gov/about-sba/sba-newsroom/weekly-lending-reports/archive/sba-lending-statistics-majorprograms-09-30-2016). [14] Dr. Susan Coleman and Dr. Alicia Robb, “Empowering Equality: 5 Challenges Faced by Women Entrepreneurs,” Third Way (April 26, 2017) (online at http://bit.ly/2ghm6yb). [15] PwC, “Women Unbound: Unleashing Female Entrepreneurial Potential,” ( July 2017) (online at https://www.pwc.com/gx/en/diversityinclusion/assets/women-unbound.pdf).

The commitment required to apply for a business loan may have you on the fence, unsure of whether or not to move forward. You’re not wrong to be cautious—rushing into any financing decision is a risky move. But don’t talk yourself out of a prime opportunity to strengthen your business’s future. If any of the scenarios below apply to you and your small business, you might be ready to take out a business loan. You Could Really Use That Extra Space (or That New Equipment, or a Few New Hires) Expansion is a great reason to take out a business loan. The extra cash can help you expand your inventory to meet increased demand, cover a staff shortage, upgrade your work environment, or update your equipment. This kind of expansion is focused on helping you do more business, which means paying back that loan is less likely to become a burden. You Could Use the Cushion During Your Business’s Off-Season Many seasonal businesses rely on loans to offset the slower months. Rather than slash prices and make panicked layoffs during your off-season, consider evening out your cash flow with a loan. Be aware that many traditional lenders prefer businesses with more month-to-month consistency, so you may need to focus your search on alternative lenders. Regardless, the right loan will help you ride those seasonal ups and downs without fearing for your business’s future. Your Business Is Mature Enough to Secure a Great, Affordable Loan Did your business just reach its third birthday? Has your business credit score finally recovered from that dip it took a few months back? Has your cash flow finally leveled out? You may have a shot at an affordable, low-interest term loan. Remember the best time to ask for a business loan is when you don’t need one. If you’re company is in good financial standing you’ll be able to secure a top tier loan that will secure your financial future. Traditional lenders are notoriously selective when lending to small businesses and may have rejected your applications in the past, forcing you to pursue to more costly short-term financing. However, if you suspect your business might be mature enough to impress a traditional lender, consider applying. You might find you now have a whole new world of attractive financing options open to you. You Need to Start Building Credit for the Future One of the best ways to improve your credit is by building up your borrowing history, and that means borrowing. You may have been prudent with your credit utilization in the past, but building credit takes time, and strong credit is a key factor in graduating to bigger and better financing. If your borrowing history could use beefing up, consider taking out a business loan—it may help your credit score for the next time you go shopping for financing. You’ve Just Received a Golden Opportunity Perhaps a client or another business has made you an offer you’d hate to refuse, but you need a few extra resources to make it happen. If you’re confident the opportunity will expand your business and put you in an even stronger place financially, consider taking out a loan. Many reputable lenders offer application processing times of a few days or less. If this golden opportunity seems like a perfect opportunity to expand, get moving. When to Avoid Taking Out a Business Loan In contrast to the “green light” scenarios described above, you should be wary of using a loan as a short-term solution to a long-term problem. For example, think twice before taking out a business loan if you’ve already maxed out your current lines of credit. Build a plan for managing your current debts first. Many lenders will view those maxed out credit cards as a red flag when evaluating your loan application—not to mention the knock to your credit history. If you’re considering using a loan to purchase some new business asset, but you’re not sure when (or if) you’ll be able to afford it, reconsider. The business plan you create when applying for a loan should detail what your new purchase will bring to your business and how that timeline aligns with your loan’s term. If you’re uncertain your new investment will pay for itself (or if your lender has offered you terms you suspect you can’t afford), taking on more debt may not be your best option. Loans are also a poor solution for mismanaged finances. Be honest with yourself, particularly if you’re a solopreneur, about how well you understand where your money’s going. Hiring a more experienced bookkeeper or operations manager may be the more responsible long-term solution. Get specific about your intentions for your loan and the health of your business, and take care you’re not seeking funding to gloss over unaddressed issues. Then, take the leap! Every smart investment in your business’s future helps it grow stronger.