In this episode of the Small Business Matters podcast, we dive into setting up effective accounting systems for new entrepreneurs. Cassie Saquing, a money mindset and business management coach with a successful background in launching a seven-figure daycare business, shares her wisdom on financial strategies to enhance business growth. The episode provides a comprehensive look into practical accounting methods, the importance of maintaining separate personal and business finances, the utilization of accounting software, and the significance of cash reserves, among other topics. Watch Our Interview Highlights: 00:55 Cash vs. Accrual Accounting Methods 03:19 Maintaining Separate Bank Accounts 04:30 Tracking Expenses with Credit Cards 06:05 Benefits of Separating Personal and Business Banking 09:00 Choosing the Right Accounting Software 10:24 Financial Reports and Bookkeeping 13:10 Setting Up Cash Reserves 15:19 Key Lessons Learned During Pandemic 17:36 Taking Care of Your Team 18:25 Tax Preparation and Reports 20:55 Supporting Hands-On Business Owners 22:52 Final Advice 24:17 Closing Thank You and Contact Information Key Takeaways:Choosing the Right Accounting Method: It is crucial to understand the difference between cash-based and accrual-based accounting. Cash-based accounting is simpler and suitable for service-based small businesses, while accrual-based accounting is recommended for product-based businesses with significant upfront expenses. Maintaining Separate Bank Accounts: Separating personal and business finances is essential for clear financial tracking and protecting personal assets against legal actions. This separation facilitates easier tax preparation and enhances financial management. Utilizing Accounting Software: QuickBooks is recommended for its intuitiveness and wide acceptance among accountants. Using software from the start of your business can save time and avoid complications when tracking financial transactions. Weekly Bookkeeping Practices: Keeping a weekly update on financial transactions and regularly reviewing profit and loss statements can provide insights into the business's financial health, allowing for timely adjustments in business operations. Importance of Cash Reserves: Setting aside a percentage of every dollar earned into cash reserves can provide a safety net during financial downturns, as seen during the pandemic. Proactive saving is a behavior that ensures business continuity in challenging times. This episode emphasizes the importance of sound financial management and accounting practices for small business owners. It particularly highlights the need for proper bookkeeping, the use of appropriate accounting software, and the benefits of maintaining cash reserves. Cassie's approachable advice encourages entrepreneurs to tackle their financial management with confidence and strategic planning. The following interview transcript was edited for clarity using AI. Gary Stockton: Cassie Saquing is a money mindset and business management coach. She helps business owners kill the hustle and make a profit. As a soul-centered financial and money mindset coach, she's also a dedicated wife and mother to four children. In her early days, she applied her skills and education by launching a successful seven-figure daycare business. Now, she teaches other women to scale their mindset and their income. Cassie, welcome to the Small Business Matters podcast. Gary Stockton: Millions of new businesses are launching around the country. Many of these businesses are being run by new entrepreneurs, people who might need to become more familiar with the accounting side of a business. So we thought it would be a great opportunity to talk with Cassie Saquing about setting your accounting systems up for success. Cassie Saquing: Hi Gary. So nice to be here. Thank you for having me. Gary Stockton: Let's talk a little bit about the foundation side of setting up a business. There are a number of steps to doing that, but a foundational step in any business is figuring out how to track revenue. Can you talk for a little bit about the difference between cash-based and accrual-based accounting methods and why it's important to pick the right one? Perhaps include a few examples of businesses that use each method. Cassie Saquing: Sure. Absolutely. And to put a little disclaimer in here, I am not an accountant, but I can explain the basics. And I think that should give us all hope, especially if you're starting a new small business; you don't have to have certain degrees. You just have to have the right kind of knowledge. And I love that we're talking about that today to better support you in starting or growing your business.So, cash-basis accounting is really the most straightforward way. You only record something like income when it's actually received into your bank account. We use this in small businesses. A lot of times, service-based businesses do very well with cash-basis accounting. In accrual accounting, money is accounted for before it's received. Maybe there's a 30-day deadline to pay it. It's an aging kind of receipt. But in accrual accounting, you process it as though it's already received. You may not have it in hand yet. So, the same thing applies to expenses for accrual: You record them before they're actually paid out. And the reason is that. You may have. I recommend this for product-based businesses that have to purchase a lot of things ahead of time. In terms of inventory tracking, the accrual method is really great for that because you have all these upfront expenses, but then it might show over a long-term revenue projection. So, I know if you're also going to get ready to sell your business, accrual is a great way to show a potential interested buyer that there's a long-term strategy for future income coming in. They can show it right away so that it's not just so up and down. Cash accounting tends to be a bit of a pendulum because you're waiting for that money to come in. So, it becomes very important to have your revenue on point and follow up methods to get all the revenue you can before the month's end. Gary Stockton: At Experian, we emphasize the importance of maintaining separate bank accounts for business and personal use. The commingling of funds can spell trouble.Why is it such a taboo for a business to do it? And why is a dedicated bank account so important? Cassie Saquing: That's such a good question because I think a lot of it is we have these feelings around the taboo, right? Oh, this is not a good thing. But why do we think it is not a good thing? Is it just because, on the most basic of levels, it's just hard to track and sort through at tax time? That's definitely a big piece of it. But, You know, you want to keep your funds inside your LLC or business. Maybe it's an S Corp. It really protects your assets like your personal assets in case of any legal actions against your company. So, really, it's the idea that if you're having a hard time, like separating, it's not a big deal. I'll just sort through it later. I just want to encourage you to make sure that you want to protect your own personal assets that way. That's really the biggest reason that might motivate any business owner to keep their personal funds separate from their business funds as well. Gary Stockton: Yeah, and that includes tracking all of your receipts and filing them in the right place. That's actually an easy area where you can slip up, right? Would you recommend separate credit cards to go with the banks? Cassie Saquing: Absolutely. I'm probably a little bit too account-happy when it comes to my business accounts. I have different accounts for a lot of different reasons. I use them like buckets, and it's just because, by human nature, I'd rather just see what I actually have for these particular purposes. But I do recommend having a credit card because obviously there's an easier way to protect yourself in case there's fraud. It's not just taking it out of your bank account; it's your actual cash flow. I practice having a no-debt business. So I pay off the credit cards every week. So it's flexible. And obviously, when you're tracking those, you track them according to QuickBooks standards and account for everything properly. Ultimately, it doesn't matter what bank account you use. That's more just for cash flow purposes. But you just want to make it easy on yourself, right? How can I make it easier for myself as a business owner? I even do so that I don't mix them up in my wallet. I write, take my credit card and write like business across with a, Sharpie because we're distracted. I like to pull it out. I'm like, Oh, that's not my business card. Okay. Sometimes, we must do these silly things to help ourselves stay in line for tax time. Gary Stockton: From a business credit standpoint, the advantages are pretty obvious, but they may not be so apparent to the new entrepreneur. If you can start showing a history of paying the credit card bill, paying that business credit card under the name of the business, this triggers to the bureau that there's history going on and there's a business. That's functioning there. It does take a little while for that personal credit transition to happen, where you can rely solely on the business's credit. But in the early days, if you can at least establish that separation, it's a good idea. Now, let's talk a little bit about tracking and systems, right? So there are a lot of accounting programs out there. What should a business owner or entrepreneur know about choosing the right accounting package? Does the business owner need to know all about accounting software to pick the right one? How do you make the right choice? Cassie Saquing: Yes, that's so important. Like I said, you want to make it easy on yourself and find intuitive software that you can follow along with. I recommend QuickBooks.They do have a very low entry level. Let's say your sole proprietor is starting. They have a very low threshold, like a monthly fee for that. But it's super helpful because most of you. Accountants will use that as the gold standard. They'll use QuickBooks, and you can easily share it with them. They have access to update it without you having to print out massive files or tons of statements. Luckily, everything is so electronic now that you can just upload all the information, the bank statements, to them as needed. But I do recommend QuickBooks. There are also other softwares out there that may be free, but the whole point of them is to track what you're doing and the activity of the business so that you're always on top of what's happening in your business and not waiting until months end to go back and check. The best way is to get the right software. We all need software for our businesses, even for simple things like emails, QuickBooks, or any other type of tracking software for your business finances. It's just highly recommended from the get-go. Just start. I've gone into other people's businesses, and we've tried to go back in time and update everything. It just takes a lot more time and sorting, and it's not likely you'll remember what happened in the business a whole year ago or two or three, so just start right away. Even if it's super simple and you need to get help with that, it's just really important to do Gary Stockton: I'm sure they must offer training on that. I am not sure. I'm a marketing guy, right? So, I'm unsure I would know exactly how to set up a QuickBooks file for my business. Is it complicated? Cassie Saquing: It isn't. I've used QuickBooks for almost 20 years now. Way back in the old days, when it was just on the desktop, it was like, I'm dating myself here. But now everything is fine. I recommend the online version. And they have, in the past couple of years, actually really improved the software and its usability. So they'll even preset these generalized ones for you. It's, you know, types of accounts and classifications that you can choose from. And as I said, I recommend using an accountant who could help support you. And depending on the complication or how complex your business might be. Depending on whether it's cash or accrual, these things do take some time. There are so many support YouTube videos that I wouldn't even recommend which one. You can go online and just watch the basics. It takes time initially, but like anything, it's worth it because you save yourself so much hassle at tax time and know your business profitability is so important. Gary Stockton: How can business owners keep a good pulse on their business's health? How can good bookkeeping aid them? Are there core reports the owner should be familiar with? Can you explain the essential reports? Cassie Saquing: Yeah. So I think the main thing that people need to remember is to stay on top of tracking and keeping up with their bookkeeping, whether that's paying someone to do it or not.There are a lot of people who do it remotely now, which is great. Or, you can do it yourself. I would recommend doing it weekly at the longest. I tend to do it probably every few days to update the books and make sure that there's no fraud going on or money that I'm surprised about or anything like that. But basically, tracking every dollar every week will help. Just don't wait till the end of the month when it's a history report and you're looking back like, Oh no, what happened three weeks ago? Because what will happen is that as you're tracking live, you'll be able to change the behavior in your business, right? You'll make slightly different decisions. Part of the tracking process that I recommend is running a P&L, which is a profit and loss statement. It's all the revenue that comes in based on category. Then, all the expenses that go out are based on category. So, as you're tracking, you'll see what's coming in and out, and you'll be able to ensure that those things are correct. Do you want to spend that money based on the revenue of that week? Some people are a little bit low-margin type of businesses, and that's fine, but you have to make sure that you're really on top of that. Then, make those business behavior changes based on your projection for the following week or the next four weeks. And, many times, we think we're just, we have to go with the wind and whatever is happening to us. And we're a little bit like, ah, I don't know how to make more revenue, but really we have so much more control than we realize. And part of that is this process of doing the weekly PNL and then, of course, monthly, and then just making sure that you look at your balance sheet, making sure that your debts, all these things are adding up and making sense to you. Based on what you know is happening in your business. And that's the way to keep a good pulse on it. The numbers don't lie. And business owners who are really good at not just making a profit or making more revenue. And we always think that we will make more money, But, on the other end, how are you tracking those expenses? It is a great way to catch the money without going out the back door. I always say you can make a million dollars, but if you spend a million and one, it's not a good business. It's not working for you. So I think that's really a great way to catch the money without going out the back door. You can make a million dollars, but if you spend a million and one, it's not a good business. It's not working for you. So I think that's really a great way to keep on top of it weekly and know what's going on in your business. Gary Stockton: When the pandemic hit before any relief was announced, many small businesses had to stay afloat by dipping into reserves. Can you talk about what? Cash reserves are how they are set up in the accounting system and why they're so important. Cassie Saquing: You know what? I always emphasize, and obviously, it's going to show up in your accounting system because you're tracking all your revenue. How I do it is because I focus a lot on cash flow, and cash flow is the lifeblood of any business, right? It's very important to know that you have enough money to make it to the next level, whether through payday or revenue or deposits. So I do, really. Obviously, everything will be tracked through your QuickBooks and your accounting system, but I always recommend putting aside a top-line percentage from the top-line revenue. For every dollar that comes into your business, set aside three to five percent. Even if you feel like you can't do that yet, start with 1 percent and then try to build it up from there because it's a behavior switch. So start by putting away money. And I know prior to the pandemic, we all thought, eh, we'll put some away. It was a little bit more here and there if there were windfalls. But now, I know my business partner and I are very purposeful in how much we put away simply because we did have to use a lot of our reserve money. And it did help us. I know a lot of businesses in our area shut down and didn't reopen. And I'm grateful for that, honestly. But I am being proactive and not just waiting until what's my profit margin, what's my, what's leftover? That's, you'll never save that way. And I think that's. It is so important to start from the top and set it aside. And that's where I get a little crazy with all my accounts, moving money constantly. I do that on a weekly basis so that we make sure that every dollar is split up into different ways proactively. So I'm definitely into habits and behaviors and making things easy. And then, of course, it's all tracked in QuickBooks so that you can see on your balance sheet how much you have saved aside. Gary Stockton: It's interesting. It's How that has changed how you look, and your particular industry category, daycare centers they closed, and it was really hard on that particular industry. Are there any other learnings from that you took that you're applying in your business today? Cassie Saquing: The biggest learning is my personal growth and humility level, right? I was like, Oh, I got this, and I know how to run a business, and we're coming up on our 20th year in 2025. So it's exciting, right? That's a long-term business. I'm really proud of that, but how I show up and treat other people, how I manage the team, I'm much more appreciative, and what that shows, it comes out in how we give bonuses to our team members, and that's part of how we manage the profits as well. We share it and look at our team, not that we didn't before, but I feel so much more like my heart has changed in a lot of good ways that I just see them as wow, if we didn't have these people, we just wouldn't have a business. And we just, I don't know, we love our team so much, and I'm so grateful. And I can't show enough. Gratitude to them. I actively look for ways to show that and can do that because of this practice of weekly updating, weekly transferring of funds, and automating some of those behaviors so that I don't have to be worried about cash flow all the time. I don't have to be scrambling, for, oh my gosh, how are we going to make it? It's just like money. It's on our minds, but it's not. Because of behavior changes, we can focus on the team better and grow it, investing in the team and getting them the right training and the resources they need. So I know that's not exactly about money, but it is because money, where we put our money, shows where our hearts are. And I think it's important to invest in the team as well, Gary Stockton: Right. And I think you're investing in the longevity of your business at the end of the day because if you have a happy team. I heard Richard Branson say something very profound once when he said, "if you take care of your team, your team will take care of your customers, and that will take care of everything else." You will have a successful business if you get that with your team. And you say that your anniversary is the 20th anniversary next year? You're doing something right there. A lot of businesses don't make it beyond two years, Congratulations! Cassie Saquing: it. Thank you. I can't believe it's going to be 20 years.I'm still in shock, but I'm just really grateful. Gary Stockton: as we record this interview, it's tax time in the US. What are the reports they will make for a stress-free tax filing for a business owner? Cassie Saquing: I think a lot of it has to do with not just reports. Like we talked about the P&L. That's super important. I do recommend at tax time to run an annual P&L looking back over 2023 or whatever year this is that you're looking back from the prior year and doing a month-over-month report so that you're looking at each month in a column and then doing the full annual report. Upload the summary for your accountant and give them access to your books. And so those are the basic, foundational. You're definitely running a P&L and then sending them the balance sheet also from the prior year. But beyond that, organizing yourself and your receipts—I know Gary, you mentioned the receipts before and scanning them all in, organizing them by month. I know it seems like a hassle, but I promise you if you ever get audited, it'll just be like, Oh, here, click on this Google folder. It's from this year, these years, organize yourself, do a whole year, and then do subfolders by month. That's what we do. And making sure that those don't get lost because floods can happen, your paperwork can go missing, making sure to make everything into a digital version of that so that it's Super easy to find and pull up, especially, and then we, share those and upload those to, our accountant as well as needed. So I think you should make sure you're on the right court reports, but then also track and scan all your receipts, just making things easy. For your accountant to be able to sort through those things will help in looking for as many tax deductions as you can within legal limits; of course, in those boundaries, you want to stay in integrity, making sure that you're taking advantage of those. Do you know anything like 401k or anything else you can do To support your team or yourself as a business owner? It's just super important to get as many tax deductions as possible, too Gary Stockton: Yeah, have a good office scanner. Have one that's easy to use; you just drop it in and have it appear in a folder so you can catalog it. Cassie Saquing: You could also get a free app —I think it's a Cam Scanner—that you can use with your phone. Gary Stockton: My dad always told me, Son, always play to your strengths. Have you met business owners who are hands-on in running their business but not interested in the accounting side? And how do you work with these kinds of entrepreneurs? Cassie Saquing: You know what? I feel that way because many business owners are doing their passion right there. They're expressing their creativity through their business. Maybe they're creating a service package, or maybe your coach or you have a product-based business you've always dreamed of. And it just gets very overwhelming very quickly. I do recommend that if you're not able to take the time or have the desire at all, I do recommend hiring a bookkeeper, someone who can keep track of your books, making sure that you're doing it properly so you don't have to go back over the years and redo everythinAnd then hire an accountant, of course, but I think many people get stuck. Gary with cash flow because you can do everything right with your accounting. You can ensure that all the percentages add up to a hundred percent, but how do you pay for things at the right time? How do you have enough for payroll to pay your employees, either payroll or contractors in your business? I think a lot of times, cash flow is really the sticking point for most business owners. That's what I love to do: help people get more cash flow in their businesses and find money in their businesses. If you've been operating for more than a year, you probably think it's time to do a cleanup, find more money, and make some decisions for yourself. I recommend doing that every quarter. But that's what I love to help with. I know how to do bookkeeping, but I also want to know how to change our behavior around keeping more cash flow in our business. It's just super important. Gary Stockton: It's all about cash flow. Do you have any final advice for business owners who might feel a little overwhelmed or unprepared for entrepreneurship? Cassie Saquing: This is more of an inspirational moment for me because I do not have an MBA. I am a mom of four. I have my education degree. I am not an accountant, but I love what I do, and I found ways to do it. Although it probably took me longer in some cases, I probably should have reached out for help sooner. But I learned, grew, and changed my mindset. If I can do it, I feel like anyone can do it. Don't get discouraged. There's so much help out there, and there are a lot of resources for people. And just realized that if you have that passion to start your business, if you're really focused on it and you're excited about it, you can always find a way to make it work. You can always find that way. If you get overwhelmed, take a break, take a breath, restart tomorrow, and give yourself grace, but keep going forward. And that's true. I'm not the smartest person in the room, but I'm just the person who just refuses to give up. I'm like, okay, start over. Like, the more resiliency you can build, the longer you'll stay in business for sure. Gary Stockton: Cassie, this has been super helpful. Where can our listeners find out more about you? Cassie Saquing: I always tell everyone to find me on Instagram. I'm actually at ProfitPassionAcademy on Instagram, and all my information is there. There are links there, and you can find a little bit more about me and how to make more money in your business. I have a lot of free offers in there for people. So I would love to help you do that to stay afloat and keep your business going. It's my passion to help people in business. Gary Stockton: It's been a pleasure speaking with you. Thank you for coming to Small Business Matters.

The 2024 Report on Employer Firms is an analysis of the data presented in the Small Business Credit Survey, released in 2023 by the Federal Reserve Bank. The report examines the performance and challenges faced by small businesses in the United States. The data is based on a survey conducted in late 2023 of over 6,000 employer firms with 1-499 employees. Rising costs of goods, services, and wages remained the most commonly reported financial challenge. In the 2023 survey, 77% of firms experienced challenges with these rising costs, compared to 81% in the 2022 survey. Key Findings from the 2024 Report on Employer Firms: Modest Improvement from Pandemic Lows: There are signs of a modest recovery from the COVID-19 pandemic's impact. Measures of firm performance, such as revenue and employment growth, held steady and are well above the pandemic's lows. However, they haven't yet reached pre-pandemic levels. Supply Chain Issues Easing: A significant improvement is the decline in supply chain challenges. In 2023, only 41% of firms reported supply chain issues compared to 60% in 2022. Challenges Remain: Despite the positive signs, there are ongoing headwinds. The most common challenges identified by firms are rising costs and difficulty hiring or retaining qualified staff. Additionally, a majority of firms are feeling the impact of higher interest rates, particularly on debt payments. Financing Demand Dips Slightly: The demand for loans, lines of credit, and merchant cash advances has decreased slightly compared to 2022. Approval rates remained steady. Among those applying, small banks, credit unions, and finance companies had the highest approval rates. However, applicant satisfaction with lenders has declined across the board. Performance and Challenges: While performance metrics haven't fully rebounded, they are stable and on an upward trajectory. There's a more optimistic outlook for the future, with firms anticipating growth in revenue and employment in the coming year. Hiring and retaining qualified staff remains the most frequently reported operational challenge, although these numbers have dipped slightly from 2022. Approval rates on loan, line of credit, and merchant cash advance applicationswere mostly steady between 2022 and 2023. The share of applicants fullyapproved remains below prepandemic levels. Debt and Financing: Firms are carrying more debt compared to pre-pandemic levels. In 2023, 39% of firms held over $100,000 in outstanding debt, up from 31% in 2019. Higher interest rates are a significant concern for businesses, impacting debt payments and causing some to delay expansion or capital spending. The use of financing products like credit cards and loans is on the rise, with 87% of firms regularly using or carrying a balance on at least one financing product in 2023, compared to 80% in 2019. Over half of the firms surveyed sought financing in the past year, primarily to cover operating expenses. The share of firms that applied for loans, lines of credit, or merchant cash advances declined between 2022 and 2023, returning to prepandemic application rates. Financing Applications: The application rate for loans, lines of credit, and cash advances has dipped slightly, returning to pre-pandemic levels. Approval rates remained steady, but they haven't yet reached pre-pandemic highs. Small banks, credit unions, and finance companies were the most likely lenders to approve applications. Firms owned by older individuals, larger firms, and white-owned businesses were more likely to receive full approval for financing. Applicant satisfaction with lenders has decreased overall. Applicants reported challenges with high-interest rates across all lender types. Overall: The report paints a picture of a small business sector that is gradually recovering from the pandemic. While there are signs of progress, challenges remain, particularly regarding rising costs, staffing, and the impact of higher interest rates. Businesses are still cautious when it comes to applying for financing, and those that do apply are facing an environment of tighter lending standards and higher borrowing costs. “2024 Report on Employer Firms: Findings from the 2023 Small Business Credit Survey.” 2024. Small Business Credit Survey. Federal Reserve Banks. https://doi.org/10.55350/sbcs-20240307This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International license. Get the Report

Whether as a startup investment or a springboard for growth, a small business loan can help you achieve your goals. But securing the right loan at a favorable rate isn't always straightforward, particularly during inflationary times. The key to getting approved at more favorable rates lies in building and maintaining a strong business credit score. Here’s how to navigate the loan landscape and unlock your growth potential with a credit-savvy approach. Why Business Credit Matters More Than You Think Many entrepreneurs are unaware that their business has a credit score that is separate from their personal one. This business credit score significantly impacts your loan eligibility and potential interest rates. Lenders use it to gauge your business's creditworthiness, much like they use your personal credit score for individual loans. A crucial first stop in your journey to capital is to check your business credit score. You should do this before you start filling out a loan application. Experian has tools to help you understand your score as it stands now, and identify areas for improvement, so when you do apply for a loan, your credit looks good. Consider monitoring your business credit report for fraudulent activity that could damage your score. Preparing for Loan Success: Beyond the Score While a strong business credit score is essential, it's not the only key to unlocking a great loan for your business. Here are additional steps to prepare for a smooth loan application process. Understand Your Borrowing Needs: Identify the type of financing you require. Short-term loans might suit immediate needs, while long-term loans support expansion plans. When considering the amount of money you will ask for, be sure to know what kind of payments you will be able to make. Know Your Loan Options: Explore various lending options for small businesses, including traditional banks, credit unions, online lenders, CDFIs and the Small Business Administration (SBA). Each offers different loan amounts, annual percentage rates (APRs), and repayment terms. Some institutions offer loans reserved for women business owners and/or members of underrepresented populations. Write a Compelling Business Plan: A good business plan is pivotal to securing financing and guiding your small business towards success, and you need one for many reasons—not just getting a loan. A business plan can serve as a guidepost during rough times, and help you stay focused on your goals. It should be clear, concise and compelling, demonstrating a thorough understanding of your business model, market, and financial projections. Gather Financial Documents: Prepare tax returns, financial statements, and business bank statements to showcase your financial health and cash flow. Since most loan applications are online, be prepared to submit these documents digitally. You may need to download PDF statements from your bank, or scan documents that you can’t access online. Consider Collateral: Depending on the lender and loan type, collateral like equipment or inventory may be required to secure the loan. You can still apply for loans if you don’t have anything to use as collateral, but be aware that having collateral may give you more options. Beyond Traditional Banks: Expanding Your Loan Universe Don't limit yourself to traditional banks. Consider these alternative lenders. Credit Unions: Often offer competitive rates and flexible terms, especially for established businesses with good credit. They may also be more likely to approve loans for startups or businesses with weaker credit. Online Lenders: Provide a streamlined application process and fast funding, but interest rates might be higher. SBA Loans: SBA loans offer favorable terms for eligible small businesses, and can be more accessible than traditional loans. They do have a lengthy application process. SBA loans are made through banks and other lenders, but carry additional rules since they are backed by the United States government. Learn more about SBA loans. Fintechs: These companies use technology to enhance or automate financial services. They leverage software and mobile apps and typically offer a wide range of financial services, sometimes with more flexibility, efficiency, and lower costs than traditional banks. Fintech companies are known for their innovative approach to underwriting, often considering a broader range of data points than traditional lenders. This can result in more accessible financing options for small businesses, including those with less-than-perfect credit histories. Microlenders: Microlenders are non-profit organizations that specialize in providing small loans to startups and businesses in underserved communities. They may offer more flexible terms than traditional lenders, but they may also have lower loan amounts. CDFIs: Community Development Financial Institutions are mission-driven lenders that specialize in providing financial resources to underserved communities. This includes small businesses that might have trouble qualifying for traditional bank loans due to factors like credit score, collateral, or being located in a low-income area. CDFI Friendly America is a great place to start. Minority Business Development Agency (MBDA) Centers: An MBDA Center is a localized resource center operated under the umbrella of the U.S. Department of Commerce's Minority Business Development Agency. MBDA Centers specifically focus on assisting minority-owned businesses. Ready, Set…Start applying for business loans Now that you’ve checked your business credit score, developed a solid business plan, assembled your financial documents and researched the best loans for your business, you’re ready to start the application process. In most cases in 2024, this will be an online process, at least up front. Make sure you have a good internet connection and ready access to digital versions of all the documents you’ve gathered. If you can look at loan applications ahead of time, it’s great if you have already written out answers to any long-form questions they may ask. The secret to loan success lies with your business credit score, but it’s also in the details of your application. If you follow directions, answer every question, provide all requested information and meet deadlines, you are much more likely to secure the funding you seek. Experian Offers Support Every Step of the Way Experian is your partner in building a healthy business credit profile. Utilize our business credit score planner and monitoring tools to stay informed and proactive. Additionally, explore our educational resources to deepen your understanding of business credit and financing options. With a strategic approach and a focus on building strong business credit, you can unlock the doors to the right loan and propel your business to new heights. Remember, your business credit score is your business's financial passport to success. Start building yours today!

At some point in your entrepreneurial journey, you may need to borrow money (Don't want to borrow? Check out our comprehensive list of small business grants for women). You have a myriad of small business loan options, but what's the best choice for your business? Here's our guide to understanding the types of small business loans for women and other financing available to you. In this article, we’ll cover the various types of funding you can pursue. These resources are for anyone, but we are specifically tailoring our coverage to types of small business loans for women. You might also want to check out our article on business grants for women. Business grants can be a great source of funding that do not add debt to your business. Small business loans The first thing that might come to mind when you think of a small business loan is just walking into a bank and applying for a loan. A small business loan is, as the name suggests, money borrowed from a lender specifically to help you run and grow your small business. There are other non-bank sources of financing such as private equity, crowd funding and hedge funds, as fintechs, CDFIs, crowdfunding and microloans, which we'll discuss later. A small business loan is basically the same as a loan for anything else, like a house or a car. You have payments each month for a certain period of time. In most cases, you’ll be charged interest. Making your regular payments on time each month will add to your business credit report and increase your business credit score. Most banks have a business loan department. You can make an appointment with a loan officer and see what your options are. If you already have a relationship with a bank; for example, if you have your personal and/or business accounts already there, that can definitely help. When you borrow money from a bank, the SBA (Small Business Administration) may guarantee a portion of the loan. This guarantee reduces the risk for the lender and makes them more willing to lend to small businesses that might not otherwise qualify for traditional loans. This can also mean that the loan must be made according to some specific criteria, which can help underserved business segments. Other types of institutions besides banks can make these types of loans, too—keep reading. What do I need to apply for a small business loan? When applying for a small business loan, having all the necessary documents organized can streamline the process and increase your chances of approval. Here's a checklist to help you prepare: • Government-issued ID: Driver's license, passport, etc.• Social Security number• Proof of residence• Business plan• Business tax returns: Past 3 years (if applicable)• Personal tax returns: Past 3 years• Business financials: Profit and loss statements, balance sheets, cash flow statements (if applicable)• Business licenses and permits: If any are required for your specific industry and location• Business bank statements: Past 3-6 months (if applicable)• Personal credit report• Collateral information: If you plan to offer collateral to secure the loan (e.g., equipment, property)• Business formation documents: Articles of incorporation, LLC agreements, etc. (if applicable)• Business contracts: Lease agreements, supplier agreements, etc. (if applicable)• Resumes or professional biographies: Highlighting your experience and qualifications• Business marketing materials: Brochures, websites, presentations, etc. (optional) Don’t forget to check your credit scores A well-prepared entrepreneur knows their numbers, and that includes both personal and business credit! Before applying for any type of financing, take a proactive approach to your credit health.Just like with personal credit, your business has a credit history and score tracked by Experian. This report paints a picture of your financial habits, including payment history, outstanding debt, and public records. Lenders use this information to assess your creditworthiness and determine loan terms and interest rates. Although separate from your business credit, your personal score can still influence loan decisions, especially for smaller businesses. Maintain responsible personal credit practices while also monitoring your business credit. By staying on top of your business and personal credit, you empower yourself to approach lenders with confidence. Remember, a healthy credit score is an investment in your business's future, paving the way for smoother funding and financial success. Check your business credit report and get your business credit score here. Alternative sources for small business funding and other resources Small business loans for women can come from a variety of financial institutions, each with their own criteria, and other types of institutions may not provide monetary support, but can offer many other helpful resources. Fintechs “Fintech” stands for Financial Technology and refers to companies that use technology to create innovative financial products and services. In the realm of small business financing, fintechs are shaking things up by offering alternatives to traditional bank loans. Fintechs use digital platforms designed for speed, flexibility, and accessibility. They utilize data-driven algorithms and alternative underwriting methods, opening doors for businesses traditionally overlooked by banks. By leveraging the agility and innovation of fintechs, you may be able to unlock funding opportunities previously out of reach to your business. CDFIs (Community Development Financial Institutions) CDFIs are specialized financial institutions that provide financial services to underserved communities and populations. These communities are often overlooked by traditional banks due to various factors like low income or lack of collateral. CDFIs step in to fill this gap by offering loans, investments, and other financial services that can help these communities thrive. CDFIs do not just offer loans; they can also offer technical assistance, financial education, and other support services to help your business succeed. Find a local CDFI in your area. Business Incubators Business incubators do not typically offer financial services or products, but they can be an amazing resource for your business, and you as a small business owner. An incubator is designed to nurture and accelerate the growth of early-stage companies and startups. They provide a supportive environment with resources and services to help startups turn their ideas into successful businesses. At an incubator you might find shared office space, mentorship and coaching, workshops and training, and networking opportunities. Minority Business Development Agency (MBDA) Centers An MBDA Center is a localized resource center operated under the umbrella of the U.S. Department of Commerce's Minority Business Development Agency (MBDA). While CDFIs, SBDCs and Incubators all offer support to small businesses, MBDA Centers specifically focus on assisting minority-owned businesses. Small Business Development Centers (SBDCs) These can also be called Growth Labs or Incubators as well, such as StartOut’s Growth Lab program for LGBTQ+ small business owners. MBDA Centers do not directly offer small business loans for women. Their primary function is to provide various resources and support services to help minority-owned businesses grow and succeed. Crowdfunding Crowdfunding can be a great option for women-owned businesses seeking alternative funding and building community support. With so many platforms and tools available, it can be daunting to get started, but it also is safer and more secure than ever before. It requires a slightly different marketing approach, since you are appealing directly to ordinary people (not grantors or companies) who you hope will give you small individual donations. Crowdfunding for a business requires careful planning, execution, and understanding of the potential challenges. Be sure to research different platforms, assess their fees and community, and develop a strong campaign strategy to maximize your chances of success. You may or may not owe taxes on the money you raise, and most platforms have some fees involved. Learn more about crowdfunding for small business owners in a recent Experian podcast. SBA Microloans SBA microloans can be a great option for women starting small businesses, especially those lacking access to traditional financing. Microloans can be used for a variety of purposes that help small businesses expand. Use them when you need less than $50,000 to improve your existing small business. For-profit businesses and non-profit childcare centers are eligible. In fact, small business loans for women represent around 57.4% of microloans. Loans are made through intermediary lenders, many of whom actively seek to support women and underrepresented groups through outreach programs and targeted loan products. Women’s Business Centers Women's Business Centers (WBCs) are a nationwide network of resource centers providing training, counseling, and financing assistance to women entrepreneurs at all stages of their business journey. These centers, operating within the U.S. Small Business Administration (SBA) framework, play an important role in leveling the playing field for women entrepreneurs. You have many options when it comes to financing your small business dreams. If you don’t think you’ll qualify for a traditional loan, check out some of these other options. You may be surprised what all is available to you, especially as a woman and/or a member of a typically underserved community.

There’s been a sea change of late related to access to financing from lenders. Higher interest rates have also made the market for financing less attractive. With lenders tightening lending standards, small business owners are looking for alternatives. This tighter lending environment has been particularly hard on women-owned and underserved businesses. Small business grants can be an excellent way to boost funding for your enterprise, so we scoured the internet for small business grants for women. Below we’ve identified 100 (yes, 100!) opportunities for women-led businesses to obtain funding. They’re sorted by type (available to all women, available to women of color, available to LGBTQ+ people, available in certain states, etc.) We provide links to find more information on each, and as of publication, this list is accurate and comprehensive. If we’ve missed anything, we’d love to know so we can include it! According to the National Women’s Business Council 2023 Annual Report, women-owned businesses now represent 39.1% of all U.S. businesses, generating a whopping $2.3 trillion in revenue. Yet, they still only receive a mere 2.8% of all venture capital funding (Carta’s 2023 Annual Equity Report). This is where grants come in, acting as the fairy godmothers of the business world, ready to sprinkle financial magic on your endeavors. How to get business grants for women Let’s talk about the act of identifying those grants that would be the best fit for your business. Not all grants are created equally, and your time researching grants is valuable. Be discerning: Don’t just focus on the Amber Grants and Cartier Women'’s Initiative Awards (although, hey, if those fit your niche, go for it!). Explore the under-the-radar, yet equally potent, funding sources waiting to be tapped. Big national grants are great, but you’ll find less competition for grants that are more specific, such as grants targeting a specific state or city or underrepresented minority group. Become a grant ninja: Research is your best friend. Track down grant deadlines, eligibility requirements, and application criteria like a hawk. Sign up for email alerts, attend grant workshops and network with other women who’ve successfully secured funding. Knowledge is power! Niche down: Dive deep into your industry'’s professional associations, non-profitnonprofit organizations, and even government agencies. The National Endowment for the Arts, for instance, offers grants for creative entrepreneurs. Backing the B.A.R. supports black-owned hospitality businesses. Research is key! Local Gems: Remember, small is powerful! Your local chamber of commerce, community development organizations, and even city councils often have grant programs specifically tailored to women-owned businesses. Don’t underestimate the resources in your own backyard. Microgrants and crowdfunding: Think small, win big. Platforms like the PayPal Small Business Grant Program offer smaller funding amounts, perfect for kickstarting specific projects or marketing campaigns. Plus, crowdfunding platforms like Indigogo and Seed at the Table can help you tap into the collective power of your community. Check your business credit report: Grantors may use your business credit score to assess your dependability and reputation as a business. Make sure you know what your score is, and what's on your business credit report. It's separate from your personal credit! Craft a compelling story, not just a business plan Your grant application should be more than just facts and figures. Weave a narrative that captures the essence of your business, your passion, and the impact you’ll make. Use vivid language to paint a picture of your future success, and get the reviewers emotionally invested in your story. Highlight the impact: Quantify the positive impact your business will have, whether it’s creating jobs, empowering communities, or solving a technical issue. Numbers speak volumes, but pair them with the emotional resonance of your mission. Embrace vulnerability: Don'’t be afraid to share the challenges you'’ve faced and how this grant will help you overcome them. Authenticity resonates with funders, who want to see the grit and determination behind the business plan. Showcase your uniqueness: What makes your business stand out from the crowd? Maybe you'’re using recycled materials to create sustainable fashion, or you'’re employing people with disabilities, or providing products or services to typically underserved communities. Celebrate what sets you apart, and let your grant application reflect that. Embrace the power of collaboration: Partner with other women-owned businesses to submit a joint grant application. This can boost your chances of funding by showcasing a broader impact and a stronger support network. Plus, teamwork makes the dream work! Remember, you aren’t alone in this journey. There’s a vibrant community of women entrepreneurs out there, cheering you on and ready to share their knowledge and support. Connect with organizations like the National Association of Women Business Owners (NAWBO) or SCORE and tap into the power of mentorship and networking. So, dust off your entrepreneurial spirit, unleash your inner storyteller, and get ready to claim your rightful place in the business community. The world needs your unique vision, and there'’s a grant out there waiting to make it a reality. Listing of business grants for women Without further ado, here’s the list of business grants for women. If you have corrections or know of opportunities we’re are missing, let us know! Private business grants 37 Angels500 Global Flagship Accelerator ProgramAmber GrantAmerican Association of University Women Career Development GrantAmerica’s Seed FundAtomic Grants from Passion CollectiveAwesome Foundation GrantsBelle CapitalCartier Women'’s Initiative AwardsCasper Accelerate Grant ProgramCenter For Economic Inclusion Vanguard AcceleratorDWEN US Dream Tech Contest EmpowHER GrantsEnthuse Foundation Pitch CompetitionFedEx Small Business GrantFemale Founder Collective x FounderMade Innovation GiveawayFounders First CDC Center for Economic Inclusion Vanguard AcceleratorFreed Fellowship GrantGalaxy GrantGiving Joy GrantsHalstead GrantHello Alice Small Business Growth FundHigh Five Grant for MomsHivers and Strivers Investment ProgramIncfile Entrepreneur GrantKitty Fund Mother-Led Business GrantLaunch Program by Ladies Who LunchMoms Mean BusinessNational Association for the Self-Employed Growth GrantsNational Endowment for the Arts Grants for creative entrepreneursPapaya Grant She'’s Connected by AT&TSkip $10k 2024 Kickoff GrantSmall Business Administration State Trade Expansion ProgramSmall Business Digital Readiness ProgramSmall Business Innovation Research ProgramStacy'’s Rise ProjectState Small Business Credit InitiativeTory Burch Foundation FellowshipVenmo Small Business GrantsWomen Founders Network Fast Pitch CompetitionWomen-Owned Small Business Contracting Program State-specific grants Beyond Open Small Business Grant Program (NC, SC)BREAKTHROUGH Grant (NY)Cecilia Russo Marketing Entrepreneur Grant (GA)The Emerging Technology Fund (MA)Founders First Job Creators Quest Grant (CA)FoundHER Accelerator Program (HI)Hello Alice Catalyst Fund (AL, CA, DC, GA, AL, OH, CA, NY, LA, MO, DC, OH)Illinois Infrastructure Grants (IL)The Minnesota Emerging Entrepreneur Loan Program (MN)Olga Loizon Foundation Grant (MI)Small Business, Big Dreams: Women in Business Challenge (NY or FL)StartHER Grant (TX)Texas Enterprise Fund (TX)Women’s Business Development Council Equity Match Grant (CT) Federal business grants Grants.govProgram for Investors in Microentrepreneurs (PRIME)SBA Office of Women'’s Business OwnershipService-Disabled Veteran-Owned Small Business ProgramSmall Business Innovation Research and Small Business Technology Transfer programsU.S. Department of Commerce Minority Business Development AgencyU.S. Economic Development Administration (EDA)U.S. Small Business Administration State Trade Expansion ProgramWomen-Owned Small Business (WOSB) Federal Contracting Program Business grants for women of color Amazon Black Business Accelerator ProgramBacking the B.A.R. GrantBlack Girl Ventures Pitch ProgramBrown Girl Jane x SheaMoisture GrantThe Coalition to Back Black Businesses GrantCorporate Counsel Women of Color Entrepreneur GrantFast Break Small Business GrantFearless FundHerRise Micro-GrantThe Coalition to Back Black Businesses GrantCorporate Counsel Women of Color Entrepreneur GrantThe National Black Business PitchThe Navigate Program by REIPartner to Empower Retail Business GrantsPepper Startup Grant for Black WomenPower Forward Small Business GrantPublish Her Business Impact GrantRebuild The BlockSage “Invest in Progress” Grant ProgramSBA Women-Owned Small Businesses (WOSB) Federal Contract ProgramStartHER GrantThe Transform Business GrantVISA She’s Next Grant ProgramWaves of Change GrantWish Local Empowerment Program GrantWomen of Color Grant Program Grants for LGBTQ+ business owners Astraea Lesbian Foundation For JusticeFounders First National pride GrantGaingelsInvest in Progress GrantLaunch Program by Ladies Who LunchNGLCC Community Impact Grant ProgramPipeline AngelsRestaurant Business Development ProgramThe Transform Business Grant You’ve got your list … what’s next? Seek expert guidance: Don'’t be afraid to ask for help! There are a plethora of grant consultants and writing specialists who can help you polish your application and highlight your strengths. Remember, an investment in professional assistance can yield big returns. Follow up, follow up, follow up: Once you submit your application, don'’t just sit back and wait. Follow up with the grantors, express your continued interest, and answer any questions promptly. Persistence pays off! Celebrate every win, big or small: Securing even a small grant is a victory! Celebrate your achievements, acknowledge your hard work, and use it as fuel to keep moving forward. Each success story paves the way for the next. Didn't get the grant? Consider a loan. Many avenues exist outside of grants to pursue funding, including standard loans, SBA loans, crowdfunding, CDFIs and so much more. Check out our comprehensive article about the different types of business loans for women. Remember, the world needs your unique voice, your innovative ideas, and your unwavering determination. Don'’t let the grant process intimidate you. Embrace the challenge, channel your inner warrior, and claim your rightful place in the funding arena. Go forth and conquer!

Advertising on LinkedIn Doesn't Have To Be Complicated Are you exploring advertising options for your small business? Advertising on LinkedIn is one place where you can target your message, but it can be challenging and complicated for some. So this week, I sit down with AJ Wilcox, the LinkedIn ads myth buster himself to answer questions about advertising on LinkedIn and what approaches work best. During our chat, AJ shares expert perspectives on advertising ROI and the significance of LinkedIn ads for small businesses and highlights the power of LinkedIn's data for targeting ideal customers in the business-to-business space. During the episode AJ dispels the myth that LinkedIn ads are expensive, emphasizing the higher ROI potential. We also spend some time talking about the use of video ads, showcasing their effectiveness in connecting with your audience. Highlights: 01:20 Starting the Conversation: Advertising on LinkedIn 02:26 Understanding LinkedIn's Advertising Costs 03:09 Optimizing Budgets for Stronger ROI on LinkedIn 05:23 LinkedIn's User Engagement and Reach 07:04 Exploring LinkedIn's Ad Formats 08:10 The Power of Video Ads on LinkedIn 13:56 Mastering LinkedIn's Ad Management 16:24 Personal Lessons from a LinkedIn Ads Pro 18:53 Busting Myths about LinkedIn Ads 20:59 Conclusion and Contact Information Watch Our Interview What follows is a lightly edited transcript of our interview: Gary Stockton: With so much turmoil taking place in social media this year, many business owners are asking themselves which platform offers the best ROI, particularly when it comes to spending valuable dollars to advertise. As AI continues to evolve, small businesses are worried about organic traffic to their websites, and which advertising partner would make the most sense. Joining us today for expert perspectives on all of this is the LinkedIn ads myth buster himself, AJ Wilcox. AJ is a LinkedIn ads pro who founded B2Linked.com, THE ads agency in 2014. He's managed over 150 million in spend on the platform. They're official LinkedIn partners. He's the host of the LinkedIn Ads Show podcast and has managed five of the world's top 10 LinkedIn ads accounts. He's a ginger, a triathlete, he lives in Utah with his beautiful wife and five adorable kids. And his company car is a wicked fast go kart. AJ, welcome to the small business matters podcast. AJ Wilcox: Gary, thanks so much. I am so excited to finally be here with you. You and I have, connected about LinkedIn for many, years now. And this is so much fun. I think we get to just geek out a little bit on it. Gary Stockton: Absolutely, I've been looking forward to this one for a while. So for our audience, who are new to advertising on LinkedIn, what advice would you give to help them get started and avoid some of the common pitfalls? And I'm going to make a confession here that. some of my campaigns have actually misfired on our initial attempts to run ads there. AJ Wilcox: Yeah, I think that's most of us. I think I spent, I could say wasted, but it's not, it's certainly not all a waste, but I spent about $10 million on LinkedIn ads before it finally clicked. And I went, Oh, I get what's going on here. So to give you a little bit of background, LinkedIn, because it knows who everyone is professionally, it knows us by our job titles and what companies we work at and company size, industry skills, seniority. the list goes on and on. There just is no other social network out there that knows this much about us professionally. So especially in business to business, we, of course, want to use that data to be able to target people who are our ideal customers. And that's great. What you need to know about LinkedIn ads is, and this is also one of the myths I think we're going to be busting a little bit, but it is an expensive channel when you compare it, especially with Meta, Google, Quora, X, TikTok. And so because the costs are so high up front, it means we actually need to really investigate and find out like, is my company a good fit for this? And that's a lot of what we'll, dive into today. Gary Stockton: So, for B2B companies. one myth that I hear is LinkedIn's a great place to focus your brand and reaching a business audience. But I've also heard it's expensive, particularly if you are new to digital advertising. How can businesses optimize their budgets for stronger ROI on LinkedIn? AJ Wilcox: It's a perfect question. So this is something I've seen time and time again. We're advertisers, especially if you're focused on North America, you're going to be paying an average of $10 to $16 per click to advertise on LinkedIn. So advertisers will look at that and say, wow, I can get traffic for $5 per click on Meta. So I'm going to go spend time on Facebook, and what we see of it and you we actually get this case study with our clients as well because we have this visibility into their, other platforms. Although, yes, Meta is cheaper and you can get clicks and you can get leads for much less expensive. When those leads make it to your sales team, we're finding that 90 percent or even more of the leads that make it from Facebook have to be disqualified by sales for not being the right fit. But on LinkedIn, Only five to 10 percent of these are being cut. If you look at it from a cost perspective, LinkedIn could be, LinkedIn is already, let's call it like three to five times more expensive per click, but when you're looking at the actual ROI, once it makes it to sales nurtures those, and you're calculating a cost per sales qualified lead, a cost per proposal, and then a cost per closed deal and ROI. LinkedIn actually pulls way ahead. So I think that's the myth that needs to be busted is just because the cost is higher upfront does not mean that you are going to have a lower ROI. In fact, your opportunity for a much higher ROI is there because you're willing to pay more upfront to reach more of the exact right people. Gary Stockton: Yeah, that's, it's a great point. And I would pay to get those qualified leads that, would be more of a fit for my product than, a hundred that I've got to wade through and pay, my, my business development team to really see if they're even qualified. One thing that I've heard is LinkedIn is, much smaller than other social networks, although they are starting to grow now, with, with what's going on with, Twitter. And the members on LinkedIn are not on the platform as consistently as, say, Facebook. Is that a myth and, can I get reach there? AJ Wilcox: I do think that's probably accurate to some regard. when we look at LinkedIn as a network, all the other social networks are happy to publish their daily active users numbers and let us know how they're doing. LinkedIn always seems to be scared to release its daily active users numbers. So the most recent data I have access to is that people were spending on average, 37 minutes per day on Facebook. This has been many years ago, but. but they were only spending 17 minutes per week on LinkedIn. yeah, it's the network that people don't tend to spend nearly as much time on. But when they do, it's focused time. It's focused on their job, their career, and growth. And so it actually makes quite a good test bed for a place for us to market and advertise to them because we're getting them while they're in exactly the right mindset. Yeah, I'll, stop it there. I've got like plenty more to share, but that's, that's the basics. Gary Stockton: Cause I think I don't want people to have illusions about, the amount of, reach. I think it's, concentrated reach, right? It's, more targeted and because we'll get into the targeting maybe a little bit later, but I understand that you can do some incredible targeting there on, on LinkedIn by job title and such, AJ Wilcox: Totally. Gary Stockton: there are different ad formats that we can leverage. Is there one that you have used with your clients that works better than others? AJ Wilcox: There are actually three that I love. And so I better mention all three. I can't just mention one. Okay. If I have to mention just one, it's going to be the single-image sponsored content. It's a newsfeed ad type. And so the newsfeed it's, your default experience, whether you log in on desktop or on mobile. So a lot of people see these and you give me four minutes with. Microsoft Word Open and Canva, and I can put an image and, 200 ish characters together of written content, so it's, I would call it like a shortcut to getting ads created, but I would also suggest that you could read Microsoft I don't know, five of my guides or white papers or something and still not feel like you knew, liked and trusted me. And that's what we fight against in business to business is we know that we have to get someone to know, and trust us in order for them to purchase. So what is the fastest way to make that connection with someone emotionally? It's video. And so I have to say video ads are very high on my list of priorities. But the third is one that I think is going to be a little bit of a shocker for people. I love text ads. This was the original ad format that LinkedIn came out with back in 2008. And they're all over in the right rail, only on desktop. They're not on mobile. they have a click-through rate that is minuscule. It's two and a half clicks out of every 10, 000 times these ads are shown. So you might be asking me like, AJ, why is this of your top? there's 14 ad formats to choose from. Why do you like these ones that no one clicks on? It is precisely because no one clicks on them or very few people click on them. They are so low cost to run. And they, pretty much every time that you load a page on LinkedIn, you're going to be seeing one of these ads and you share it with two other advertisers. And they're the lowest cost ad format. When someone does click, you can pay all the way down to 2 per click. So we've found that when we're running these text ads, when you have your logo showing up, every time someone loads a page on LinkedIn, you may not see much of an effect from those ads, but all of a sudden in your newsfeed ads, you'll see a, we've seen a 13% increasinnd click through rates on average.And I think it's simply because when you see my other ads, you're going to go, Oh, I've heard of that company before. They must be legit. Gary Stockton: Wow. So really getting that focusing on the, copy in that text ad. So it performs a really, we've got chat GPT, right? We've got all sorts of tools now that can help us really optimize that.so don't be dismissive of the, the humble text ad. It could be a secret weapon in your toolbox. And you mentioned video. Video can be difficult for people like me who have a face for radio. Can you advertise effectively using videos? And if so, what are the best video formats that convert to leads for small businesses? AJ Wilcox: I actually fought against video for a long time. I used to argue, if we would have talked two years ago, I would have argued that LinkedIn's, cost per video view is so much higher than you would pay on, Meta or YouTube that it was not even worth it. And people just don't spend that much time on LinkedIn anyway. So why are they going to stick around and watch a video? just in the last six months to a year, we have seen extreme changes in video where, yeah, the costs are still high, but if you're comparing them to your cost per getting someone to a website, we're finding on average that we can get three people to watch at least 50 percent of a full video ad for the same price it takes to get someone to a landing page.And after that, my mind is blown like, wow, three people watching half a. This is a video that's 40 or like a minute 12. So we're talking about over 30 seconds of airtime of getting to connect with someone makes it very powerful. So then we get to talk about the small business side. So a lot of the times we go and talk to our larger customers and we say, Hey, you need video. What do they jump to? They jump to, okay, we have to go hire a studio. We have to go hire professional video. Editors and a whole crew and this is going to take six months to produce and it's going to cost tens or hundreds of thousands of dollars, but when we talk to our smaller customers, smaller businesses and we say, we need video, it's a completely different story. We're talking about the founder literally picking up their phone and recording themselves talking about "this is my passion", "this is why I started the company", "this is the problem we're solving", "this is my WHY as a founder, as an entrepreneur", and those videos we're finding, they cost next to nothing. You might be paying, $30, $40 for someone to edit it and it took you 10 minutes to record with your phone and writing up a quick script and now all of a sudden, this is more effective than the types of video content that large companies are spending hundreds of thousands of dollars for. So don't let video scare you away. Gary Stockton: The person that comes to mind when you talk about that kind of video is Chocolate Johnny. Have you heard of him? Chocolate Johnny. Okay. He has a chocolate company. And, he makes caramel and all sorts of things, but he's a confectioner, that's his business, the chocolate business, and he's in Australia, but he is fantastic at social media and awesome at just showing, insights about his company, making chocolate, and he's just, super engaging too with the people that interact with him. And I think that's the other part of video too, is not just putting it out there and not responding to the comments. You have to be interactive with the audience to some degree? AJ Wilcox: I totally agree with that. I think I don't know of a brand too large to actually respond to everyone who, responds. It's one of the best things we can do both personally and from a company perspective is make sure we comment on every, or we respond to every comment because that's how people go out on a limb a little bit in leaving a comment on a company post because they never know if someone's even on the other side and if they care and if we show them that we care by like actually responding to their comment, I think we make people feel special and we win fans for life over something very trivial. Gary Stockton: Yeah. okay, more myths. Another thing I've heard is LinkedIn is difficult to master in terms of ad management. Is that, is it hard to use and scale? AJ Wilcox: I would have to say yes to this. Like I, I wish that this is a myth I could bust, but, LinkedIn has put a lot of effort into their platform over the last. I don't know, five, six years. It looks totally different. they've added a whole bunch of new tools. but if I'm really being honest, if I'm going to go and start my first campaign on, on Meta for Facebook, if I don't know what I'm doing, I'm going to go down and select like all the defaults and just say, okay, I'm okay with all these things. I don't know what they do. I'll just keep going. And. I'm going to do okay. Like it may not be the best thing I've ever done, but I'm going to do okay. If I go and do the same thing on LinkedIn, I am going to get absolutely boiled. there are five settings that in LinkedIn's default building of a campaign are not in your favor as advertisers at all. I'll give you an idea here. One of the first ones, there's a box that LinkedIn automatically checks called enable audience expansion. And that is like the worst thing that you can possibly do for your campaign. But LinkedIn insists on making it a default selection. And so what happens is you are very thoughtful and selective about the audience that, that you say, I want my I want to show this audience my ads and then LinkedIn goes, great. Now let's throw a whole bunch of other people that they didn't select into that audience for the purpose of making other people aware. if you have a small budget or a focused budget, you don't want to spend it on people who might could be tangentially related. all of that to say, yeah, LinkedIn does make it hard to build a campaign, that's why I have a job because if it were really easy and everyone could do it, like no one would come to an ad agency like ours. That being said, I'm a self starter. I'm the, kind of person who every new thing that I want to try out. I want to build it myself. And so if you are like me, absolutely, you can build, you can master, you can scale. but just realize like you, as you're learning it, there will be a, big cost of scaling along the way. And, that's okay. You, take that on yourself as a self starter. Gary Stockton: That's great advice. AJ, in your long career as the myth busting LinkedIn Ads Pro. What are some personal lessons that you've learned that you think would be helpful to our listeners interested in advertising on LinkedIn? AJ Wilcox: It's interesting. When I started in LinkedIn ads, there just wasn't anyone else out there who was talking about LinkedIn. I grew up in the world of Google ads and the world of SEO. And as I grew up in these worlds, there were all of these thought leaders who would actively publish and share and speak on stage and teach about what they were doing. So when I chose LinkedIn ads as my niche, I jumped in and there just wasn't anyone else to learn from. And so I spent a lot less time reading blogs and researching what other people were doing, and I put that time into running my own tests and coming up with my own hypotheses, and I kind of turned into a bit of a scientist in the way that I approached the platform, and I learned so much, and I got to learn the things that I cared about, not just someone wrote a blog post about this new Google update, and so I have to learn from whatever they decided to test. I get to test my own thing. And so that's I think the biggest recommendation I'd have for everyone is like approach your craft like a scientist and rely a lot less on what other people are publishing and go run your own tests. And I think that's the best thing I've learned. that, even though there are now a lot more people talking about LinkedIn ads, I'm going to keep doing the tests at the same cadence that I was before. Because I realized I loved it and I learned so much more this way. Gary Stockton: It must have been so exciting, in the early days of your business to see that LinkedIn was in your tests, in the lab, so to speak, that you were seeing, you were getting new clients. You were starting to really grow the business. Is that's a true statement, right? AJ Wilcox: Oh, absolutely. The, I think my favorite thing about it was when I would do tests and I would find one thing, the results from it were applicable to every other client that I was working with. And LinkedIn didn't know. It's almost like you find a little loophole, a hack, a trick, and you get to exploit that. That was so much fun. It was so much fun to be on the inside and then realize I can go and get my clients. three, four, five times the results than they could get on their own because I found these little things. that's, nothing makes me happier than finding some of these little chinks in the armor, things that I can exploit and use. Gary Stockton: That's cool. So are there any other advertising on LinkedIn myths that we can set about busting on Small Business Matters for our listeners? AJ Wilcox: Yeah. as I've listened to people talking about LinkedIn ads publicly for the last, 10 years, the two that I hear the most often are LinkedIn ads are too expensive and they don't work. And we've already talked about the expensive part, who cares how much something costs per click if you're getting a great ROI off of it. So I think we've, well covered that. But, the "it doesn't work", we have seen over and over for our clients that LinkedIn ads gets you access to exactly the right kinds of people who are your ideal clients. They close larger deal sizes than any other channel out there. We can use them to get people's attention to build that know, and trust factor with them. And then they do close, they do turn into actual deals. So in my mind, when I hear someone say, Oh, LinkedIn ads doesn't work. It's either a mechanical thing like, Oh, maybe they don't have a high enough lifetime value to be able to get an ROI because of LinkedIn's, higher costs. Or more than likely, they didn't really give it a chance. They treated it like a cash machine of I'm going to go to these cold audiences and I'm going to show ads that say hop on the phone with my sales rep and buy something now and surprise, surprise when no one is willing to jump right to the bottom of your funnel because they don't yet know and trust you to go out and say. Oh, it doesn't work or I spent $300 on it and it sure seemed like that $300 was wasted because you do, you need a lot more data to know whether or not something's working and B2B sales, they take time, they, they're longer than, Oh, I tested it for a month and that's it. That's the big myth. Gary Stockton: Well, AJ, this has been great. I feel a sense of calm and confidence coming over me as I listen to you. Where can our audience find out more about B2Linked and starting a conversation with you? AJ Wilcox: Yeah, I think it's really easy. You can either follow me on LinkedIn. if you want to connect, just let me know that you heard me on Gary's show in the, invitation to connect. Cause I get a lot of those connection requests and I don't accept them unless I, I see like why someone's connecting, but you can always follow me there. I'm always sharing new tips, tricks, and strategies that I've found on LinkedIn ads there. and if you're interested in working with us in any capacity, just go to our website, B2Linked.com and, it's pretty easy there to, get in contact. Gary Stockton: Thanks so much, AJ. It's been great having you on the show. Thank you. AJ Wilcox: Thanks so much, Gary.

The Landscape of Retirement Savings is Shifting The passage of the SECURE 2.0 Act on December 29, 2022, marked a significant milestone in the evolution of retirement security in the United States. This legislation specifically targets small businesses and their employees, aiming to drastically expand access to employer-sponsored retirement plans, in part with the creation of two simple, affordable new plans: the Safe Harbor 401k and the Starter 401k. For many small businesses, this presents a unique opportunity to enhance their employee benefits packages and contribute meaningfully to their overall financial well-being. Why Invest in Retirement Savings for Employees? Offering retirement benefits offers numerous advantages for small businesses, both directly and indirectly. Here are some key benefits. Attract and Retain Top Talent: In today's competitive job market, offering retirement benefits can be a significant differentiator when attracting and retaining skilled employees. Studies show that access to retirement plans ranks highly among employee priorities, making it a powerful tool for recruiting and keeping top talent. Boost Employee Morale and Productivity: When employees feel financially secure and have a sense of security for their future, it leads to increased morale and motivation. This translates to improved productivity, higher engagement, and a more positive work environment. Reduce Financial Stress: The burden of managing personal finances, especially saving for retirement, can be a significant stress factor for many employees. Offering retirement plans helps alleviate this stress by providing a structured and automated approach to saving, allowing employees to focus on their work and personal lives with greater peace of mind. Strengthen Your Company’s Reputation: Demonstrating a commitment to employee well-being through retirement benefits can significantly enhance your company's reputation. This can attract positive attention from potential employees, customers, and the broader community, leading to a stronger brand image and improved public perception. The Growing Trend of State-Mandated Plans With over 30 states actively considering state-mandated retirement plans and 17 already having enabling legislation in place, the landscape of retirement savings is rapidly evolving. Small businesses owners may not have a choice about whether to provide a retirement plan for much longer. This trend, as well as the provisions of the SECURE Act, reflects the growing awareness of the need for broader access to retirement savings options and the potential benefits it offers for employees and the economy as a whole. “The bi-partisan SECURE legislation is really exciting for the millions of Americans who don’t right now have access to an employer-sponsored retirement plan,” says Jean Smart, founder and CEO of Penelope, a 401(k) startup that offers retirement plans for micro businesses. “This legislation offers tax incentives that make it more affordable for small business owners to provide retirement plans. In turn, it will help more Americans save for retirement, ensuring their financial security in old age.” Understanding the SECURE 2.0 Act Provisions The SECURE 2.0 Act tackles several crucial areas to improve retirement savings accessibility (for employers and employees) and incentivize participation: Matching Contributions for Student Loan Payments: This innovative provision enables employers to match employee retirement contributions based on their student loan payments. This directly addresses the significant financial burden of student loan debt and encourages employees to prioritize retirement savings alongside debt repayment. Emergency Savings Accounts within Retirement Plans: This provision allows employees to establish emergency savings accounts within their retirement plans. This empowers them to build a financial safety net for unexpected expenses, reducing their reliance on high-interest debt and promoting financial stability. Automatic Enrollment and Contribution Increases: The act encourages employers to automatically enroll employees in retirement plans and gradually increase their contribution rates over time. This removes the inertia that often prevents individuals from taking action and helps them accumulate significant savings over time. Increased Catch-up Contribution Limits: Older workers (aged 50+) now have the opportunity to make higher catch-up contributions to their retirement plans. This allows them to close any existing savings gaps and reach their retirement goals more effectively. Simplified Disclosures: The act requires clearer and more concise explanations of retirement plan options for employees. This empowers them to make informed decisions about their retirement savings and participate with greater confidence. New and Enhanced Tax Credits for Small Businesses: The SECURE 2.0 Act offers valuable tax credits to small businesses offering retirement plans. This financial incentive helps offset the costs associated with establishing and maintaining a plan, making it a more financially feasible option for smaller businesses. New Retirement Plan Options Tailored for Small Businesses The SECURE 2.0 Act introduces two new types of retirement plans for small businesses, the Starter 401k and the Safe Harbor 401k. Starter 401k: ● Ideal for businesses with no existing retirement plan● Employees contribute only (no employer match required)● Lower contribution limits ($6,000 annually, with a $1,000 catch-up for those 50+)● Automatic enrollment (starts at 3%; employees can contribute up to 15%)● Simplified administration for employers● Available starting January 1, 2024 Safe Harbor 401k: ● Requires employers to make mandatory matching or profit-sharing contributions● Higher contribution limits ($22,500 annually, with an additional $6,500 catch-up for those 50+)● Automatic enrollment (starts at 3%; employees can contribute up to 6%)● Automatic compliance with testing requirements● Provides a more robust retirement benefit for employees● Already available for employers Choosing the Right Plan for Your Business The optimal retirement plan for your small business will depend on several factors, including: Size and budget of your business: Smaller businesses may benefit from the simplicity and affordability of the Starter 401k, while larger businesses with more resources may opt for the more robust benefits offered by the Safe Harbor 401k. Employee demographics and participation preferences: Understanding your employees' age, income levels, and financial goals is crucial for choosing a plan that resonates with them and encourages participation. Desired level of administrative complexity: The Starter 401k offers a simplified administrative process, making it ideal for businesses with limited resources. Businesses seeking more flexibility and customization may prefer the Safe Harbor 401k. Financial goals of your employees: Consider the long-term financial aspirations of your employees and choose a plan that offers sufficient contribution limits and investment options to help them achieve their goals. What Is Auto-enrollment? The government doesn't directly enroll employees in any retirement plan. It is up to the employer/small business owner to decide whether to auto-enroll eligible new employees in any plan. Employees always have the option to opt-out. If the employer chooses to use auto-enrollment, new eligible employees will be automatically enrolled at a default contribution rate set by the employer. This rate must be between 3% and 10% of the employee's salary. Employees will be automatically notified of their enrollment and given the option to opt out or adjust their contribution rate. If the employer does not choose to use auto-enrollment, then new employees will have to actively enroll themselves in the plan if they want to participate. Be A Proactive Small Business Owner: Take Action Now With the abundance of resources and incentives offered by the SECURE 2.0 Act, there is no time like the present for small businesses to take proactive measures in helping to secure their employees' financial future. By exploring the available retirement plan options, selecting the right one for your needs, and taking advantage of the provided tax credits, your company can make a significant and positive impact on your employees' lives, and contribute to your company's long-term success. Investing in your employees is an investment in your company’s future. Additional Resources IRS Website: https://www.finance.senate.gov/American Retirement Association: https://araadvocacy.org/the-whats-and-whens-of-secure-2-0/National Institute on Retirement Security: https://www.nirsonline.org/

Stephen Jordan explains DMARC and the shocking number of vulnerable businesses that do not implement it Boosting email security for your small business is just smart Cybersecurity expert Stephen Jordan joins us on the podcast today to discuss critical measures for boosting email security that small businesses need to implement. He explains the vital role of DMARC (Domain-based Message Authentication, Reporting & Conformance) in safeguarding a company's email domain against spoofing, phishing, and business email compromise attacks. Shockingly, Jordan reveals that 82% of businesses do not have DMARC protection enabled. Of those that do, only about 1.5% are using it properly with enforcement and monitoring. This leaves companies wide open to reputational damage, fraud, and disruption from email impersonation. Boosting email security with DMARC needs to become a priority. Jordan outlines common challenges small businesses face in adopting DMARC and stresses the importance of combining it with related protocols like SPF and DKIM for layered email authentication and boosting security. He shares startling statistics of over 1,500 fake emails stopped in one month for a client after boosting email security. Looking ahead, Jordan predicts DMARC and email security overall will continue advancing as threats evolve. He emphasizes the need for continual improvement in boosting email security, not assuming one solution is enough. Jordan advises asking questions of IT providers and getting third-party assessments on whether email security is adequately boosted. With employee vulnerabilities a top risk, ongoing security awareness training and testing is vital for boosting protection as well. Watch Our Interview What follows is a lightly edited transcript of our discussion. Gary Stockton: About 46 percent of all cyber breaches impact businesses with fewer than 1, 000 employees. Small businesses receive the highest rate of targeted malicious emails, with one in every 323 businesses impacted. Business email takeover is the type of hack where a business is targeted, its email server hijacked, and the hackers perpetrate various frauds including fraudulent wire transfers. Victims of these crimes face significant interruptions in business operations and reputational damage among their customers. Some even shut their doors as a result. It's a terrible problem, but a problem you can prevent. Joining us today to do a deep dive on email security is Stephen Jordan, a cybersecurity expert and founder of Sound Cybersecurity. With over 32 years in IT and cybersecurity, Stephen brings a wealth of knowledge in email security, particularly DMARC. Today, he'll share insights on safeguarding your small business against digital threats and navigating the complexities of cyber compliance. Stephen, welcome to the Small Business Matters podcast. Stephen Jordan: Thank you very much. Glad to be here, Gary. Can you explain it and why it's essential for small businesses to implement in their email security strategy? Stephen Jordan: Absolutely. DMARC is a wonderful tool that we have available to us as an email security tool. Unfortunately, it's just the way that email is designed. Anybody who has the technical ability to open and create an email server can immediately start using your email address or anybody's email address for that matter. And in the process of doing that can, launch malicious attacks. It's, a shame that, they're able to do that, but. They are, and DMARC is a way to put a stop to that, completely. it's a, great tool, and there, the reasons and benefits, to it, are many, but of course, the, biggest one to me is the ability to stop cyber criminals from using our email addresses, it also improves the reputation of our legitimate email messages, so they're more likely to land in an inbox instead of a junk folder. It helps protect our business brand. It helps protect our business reputation. It's also a great way to just be a good neighbor on the internet because when I enable DMARC for my domain name, not only does it protect me, but it also protects everybody that I interact with email. What are some of the common challenges that a small business might face when setting up and maintaining DMARC, and how can they overcome these obstacles? Stephen Jordan: Yes, the initial challenge is just like anything else is, learning something that can be complicated and, complex. And getting over misconceptions. When I say that it's not just misconceptions for business owners or managers, even with our our I. T. industry, there are a lot of people that have, many misconceptions about DMARC and what it does and how it works. And some people just fob it off as being unimportant. But when you really stop and you take the time to learn it. You, you'll find how important that it is. And so, to overcome those obstacles I think there, there's one of two ways: they either decide they're going to dive in and do it themselves, or they're going to contract that work out to somebody like me to take care of it for them. And once you decide which way you're going to go there, of course, for me, I would prefer they use me to take care of it. I have already learned what I need to learn and can do all those things for them. But if they're going to go the route of do it themselves, they really need to make sure that they invest in a good tool to help them because this isn't something that you just do on your own and, can handle with your own inbox. Gary Stockton: Yeah, I set it up once and, it was a little involved. I work with a consultant as well to help me through it. It didn't take too long to get up and running, but I saw some immediate benefits. Now, there are other protocols out there like SPF and DKIM, but why is it important to use them together? Stephen Jordan: DMARC would be nothing if it weren't for SPF and DKIM. Those three things go hand in hand. Of course, DMARC we also know is email authentication, but SPF and DKIM and DMARC combined to make up this wonderful tool. And so, we, couldn't survive without those other protocols. And SPF is the one that's, initially checking to be sure that the email message is really coming from a legitimate source, someplace that you've published, you allow email to send from. DKIM, of course, is stepping in and using private and public keys to encrypt portions of the message to make sure that information about where it came from and who it came from is intact and legitimate. And then DMARC takes the final step and, confirms all of that and makes sure that it all really aligns with the domain name you're sending from. It's a combination. And even though we say DMARC, or we say email authentication, it's really a team effort from all three of those protocols. Could you share some percentages of businesses that go that extra step? I don't think it's big. Two out of a hundred businesses are fully implementing DMARC. So, we have a long way to go to put this wonderful tool to use.Stephen Jordan, Sound CyberSecurity Stephen Jordan: Yes. It's, it's funny because initially, you look at it in, and, and of course my statistics run really close with others that I see published, but I have checked the status of DMARC on thousands of domain names. And what I have found through all of that is that. Eighty-two percent of all domain names that exist do not have DMARC configured at all. So, when you look at that and you go, 82%, so that means 18% do, that's, almost one in five. So statistically that, we're off to and Okay, start, no, not really. Because when you dig into that 18 percent – 10 percent of the total, they do have DMARC enabled, but their policy is set to none. Maybe I should say at this point that, there's when you do set up DMARC, you must choose the three different settings and those settings are none, quarantine, and reject. And when you say none, it's a great starting point. We all need to start there because that's what we use to start monitoring the reports and look at what's going on so that we don't create any problems or so that we know what problems there are. Once we get those things configured, we must, move up from there, but those statistics, show that 10 percent of the total is set to none. And I don't see those changing a lot, I don't go back and recheck them all, but there are very, few of those progress from none on up to the higher levels of reject and quarantine. Out of that, that leaves 8 percent of all domain names that are at least on quarantine or on reject. The way that breaks down is about 5 percent of the total are on quarantine and 3 percent are on reject. Now, what's not so great about that, even worse, is that when you start looking at those, what I find is that, so take that, 5 percent that is on quarantine, only half of those specify a source to send the daily aggregate reports to. Same thing with the 3 percent that are on reject. Only half of those domain names are set to send the report somewhere. If you really want to get down to the final details of, how many people or what percentage out there are really using DMARC to its full capacity, it would be the people set on reject, and they are looking at the reports. That really means about one and a half percent of all domain names. So, if anything right now, we can say that there's two out of a hundred businesses are fully implementing, DMARC. So, we have a long way to go to put this wonderful tool to use. Gary Stockton: That's a shocking statistic, really, when you think about the reputational damage it could do to a small business, podcast listeners, this is something you're going to want to rewind and re-listen to here. And if you are not working with a professional in this and you need help, you got to call Stephen up and have him come and help you get it all of this set up. Stephen Jordan: Definitely. Talk about a few real-world examples or case studies where implementing DMARC significantly reduced email fraud or phishing attacks for a small business. Do any come to mind? Stephen Jordan: Yes. I'll give you a couple of my own, it's, interesting because you can go on the internet and you can find tons of statistics about, pre-attack times or how many attacks, happen. But once people enable DMARC, you don't really get too much in the way of statistics because at that point we've really, put a stop to it. I keep my dashboard open for my tool and I've got one client here in mind. Let me just pull them up quick. So, over the last, 30 days, this is a client of mine that's in the technology sector, and in the last 30 days, they have had 263 compliant messages. So those are messages that they have sent that are completely legitimate. But they've had 1, 549 illegitimate messages sent as if they're from their domain that really, they are not. Now, because we've set up DMARC, we've stopped those from reaching the inboxes that they would have reached. So, we really don't know, what any one given message would have done or how much of a problem it would have caused. But that is a significant percentage of messages going to their clients, their vendors, and other people that they may interact with that we've put a stop to. There are many other clients I have, some of them aren't as large in those numbers. We've had some small, I've got one oil and gas client that, he, might have a volume. He's a sole proprietor. He might have an email volume of fifty messages a month. But every now and then we'll see one, two, or three, illegitimate messages sent from his domain name, and they got stopped. So, we really don't know, did we prevent a phishing attack in that message case? Somehow it would have been stopped by some other means, but DMARC put a stop to it ever even getting there in the first place. How do you see the role of DMARC and email security evolving, especially with the rise of sophisticated cyber threats? And now we've got AI as a toolbox, right? Or a toolkit for a lot of these hackers. How do you see it shaking out in the future? Stephen Jordan: You know, you think back to medieval times and the weapon got bigger and the armor got bigger, and we just kept going back and forth and I think we'll, we have seen that, and history shows that. So, we will continue to see that going forward, with DMARC, specifically, right now, it is not a requirement; you do not have to have it to be able to send email. So, I think part of the evolution at some point will be that it, it will be a requirement and you, will have to have it. The way DMARC works right now, we talked about it working in conjunction with those other two protocols. Those two protocols do have to be functioning correctly for DMARC to approve a message. Only one of those other two must align with your domain name for a message to get through. I could see as this continues to evolve that there will come a time when both of those will have to align. So, getting stricter with DMARC and, enforcing it, but Yahoo and Google in February coming up here soon, they are going to start enforcing it for anybody who's got a large volume. If you're a sender of 5,000 emails or, more, they are going to start enforcing, DMARC for those senders. So, we're starting to move in that direction, and that’ll be there. But as far as email goes, I wish I had a crystal ball to tell you exactly. I could see the day coming when, you know, we each end up having to have our own certificate, that, that represents us, that there is some connection between the email messages that we send and something physical that identifies that it was really us that sent the message. Not that's going to kick SPF, DKIM and DMARC out of the picture. I think it'll remain as a layer. I could see that. I remember in the sixth grade, my teacher asked us to draw a picture of a football player and what we thought a football player would look like in the future. And, for most of us, the pads just got bigger and, and I can see that with email, those layers, and the security we put behind it will continue to evolve. I wrote a great blog on my website a while back titled "Email Security Is Not a One and Done Thing", and there are just a lot of different things we need to do. DMARC is one of those great pieces to that puzzle. Gary Stockton: I've heard and Experian has reported on one of the greatest cyber risks to a business is through their employees. How can businesses train their employees to recognize and respond to phishing attempts effectively? Stephen Jordan: Yes, so you, must have security awareness training and testing in place to just keep people aware and give them the knowledge. There are a lot of people that just don't understand and, doing something like that security awareness training and testing will start introducing them, it will test them so that if they are more prone to click on things that they shouldn't, you can, the testing will draw that out and you can start bringing that to their attention, but that's, I think is, definitely the beginning step for helping those employees improve, it, there are so many things we've seen so many statistics now that one out of five employees are actually would be willing to sell their password, to a cybercriminal. There are just so many things that are out there these days that make it tough on a business to not only just teach, but also to enforce and protect and you can implement wonderful policies, but just like traffic laws, which doesn't mean everybody's going to follow them. Do you think sending, fake phishing emails to your employee base to see what cross-section of your employees could need retraining (is a good idea?) Stephen Jordan: Yes. and that's what the testing usually does is it, does send out those types of, just. UPS, package delivery, click here to check the status of your, your package, whatever it may be, they, those testing, email messages are sent, and then instead of, course, communicating with a known bad actor out there that just are collected in your company's testing data. And you can see who, is clicking on those messages. and it's a great tool to say, okay, employee, such, and such. Yes, you need to go back through and read, or rewatch this training. Gary Stockton: There's probably some very young businesses listening today. through the pandemic, we've seen a of new businesses, millions of new businesses being, and some of them are outsourcing email operations. Do you have any advice for businesses that are outsourcing their email infrastructure to another company? What should they be looking for? Stephen Jordan: Yeah, and I bet most of us are doing that these days. And I think the best thing to do there is just remember, like I said earlier from that blog, that email security is not a one-and-done thing. You may be told by whomever you're outsourcing your email to that they've implemented an email security solution for you. You may even see on your monthly invoice that you're paying for a separate email security solution. But that doesn't mean that you're done that is just one of the pieces of everything that needs to be done with email security so if they're outsourcing it, I think the biggest thing for business owners and managers is don't assume that everything is done, definitely open the hood, take a peek, see what's going on and, ask important questions and, use somebody like myself or get a third party opinion on how they're doing with that security. Gary Stockton: Yes, and discovering that the DMARC hasn't been set, that's going to be a revelation for, a great many, I would imagine. Stephen Jordan: Yes. How can small businesses develop and enforce effective email security policies and what compliance aspects should they consider? Stephen Jordan: I would say that there are so many great security policies that every business needs to have in place. Password policies and acceptable use policies and all, there's a long list of those. But as far as enforcement goes, you've really, any decent company that's either providing or promoting those policies, one of the pages is getting the employee to sign off that they have read and received those policies. That is a huge step in moving towards better, adoption and acceptance, and obedience to those policies. But you're still going to get people that aren't going to do them. And I can hear my HR professionals’ words ringing in my ears about stepped discipline and verbal warnings and written warnings and final warnings before you act. But it's hard. Do you fire your best salesperson because they're not following all of your email habits? That is a tough decision to get down to. That guy may be making you tens of thousands of dollars per month if his bad email habits suddenly end up exposing the entire company to Ransomware. Where is that balance and benefit to having that employee? So, I think they want to develop those policies, get everybody to sign off on them and, follow up with real action. The sad thing that I am seeing, occasionally, it's, not in the news a lot, but we are seeing that employees are beginning to get named in some of these lawsuits that are occurring, That's a huge wake-up call. Of course, it was a huge wake-up call for those of us in the I. T. and in the cyber security business. If you make a mistake, you can end up on the wrong side of the lawsuit. Everybody that's involved needs to realize that they, are the last line of defense. You don't have to be in the IT department. You don't have to be a CEO. Anybody and everybody, you're the last line of defense. And it's funny when I do occasionally send out some bulk emails promoting DMARC, I'll get some people to respond back and they just go, "Oh, this doesn't matter to me. I'm not in the IT." Well, it really should matter. It doesn't matter if, you're the janitor and you're checking your email on your cell phone, you're still, part of all of this. Gary Stockton: Yes. At Experian it's job #1. It's the first thing; the priority of the business is security. So, we take it tremendously seriously here. This has been extremely illuminating and valuable. Do you have any closing thoughts about email security, Stephen? Stephen Jordan: Just don't, make assumptions, let somebody look for you if you don't have that technical ability and, just, Rome wasn't built in a day. Nobody's expecting you to be perfect this afternoon. It's, going to take time. Just start. Start looking into it and start implementing one thing at a time until you get to a point where you can say you're comfortable and know full well something new is going to come along that we're all going to have to adopt at some future point. And it's, just inevitable and, it'll keep evolving and changing and we'll keep evolving and changing with it. Gary Stockton: Excellent stuff. Where can our listeners find out more about you and the services you provide? Stephen Jordan: Absolutely. They can always go to my website. It's soundcybersecurity.com. You're welcome to shoot me an email if they'd like stephen@soundcybersecurity.com. They're welcome to give me a call if they'd prefer to do that. My number is 866-772-8181. Gary Stockton: Fantastic. It's been a real pleasure speaking with you, Stephen. Thanks for sharing so generously with our audience. Stephen Jordan: You're welcome. Thank you for having me, Gary.

It's hard to believe another year is almost over! As the year wraps up, small business owners and entrepreneurs find themselves at a pivotal moment. It's that time when we reflect on our accomplishments, confront our challenges, and chart the course for the future. This year end business checklist will help you do that. While the year-end hustle may conjure images of financial reviews and tax preparations, our focus today is on ten crucial non-financial tasks that will empower your business for the year ahead. This checklist will help you master your year-end with precision and purpose, so let's dive in and make sure your business is poised for a strong and prosperous new year. 1. Website Wellness Check As the year draws to a close, it's imperative to ensure that your main first impression–your website–is in top-notch condition. Take the time to review your website thoroughly. Look for broken links, outdated content, and any other issues that might confuse potential customers or clients. An optimized online presence not only enhances your brand's credibility but also ensures a seamless user experience. Make necessary updates, refresh images, and revise descriptions as needed. Is your website mobile-friendly? More than half of your visitors are likely accessing your website from a smartphone. Your website is often the first interaction potential clients have with your business, so make it count. 2. Data Safety First In our increasingly digital world, protecting your business's data is paramount. Take the necessary steps to back up all your computers, mobile devices, and websites. Establish a solid backup procedure to safeguard your valuable digital assets. Consider employing cloud-based solutions for secure storage and automated backups. By preparing for unforeseen data loss, you're investing in the reliability of your business operations. Prevention is the best defense against potential data disasters. 3. Make Sure Employee Records are Up To Date Efficient human resource management begins with accurate and up-to-date employee information. Take the time to carefully update, including addresses, names, family members, and beneficiaries. Accurate HR data ensures smooth communication, timely benefits distribution, and seamless collaboration among team members. When you regularly maintain these records, it streamlines your internal processes. It also demonstrates your commitment to the well-being of your staff. 4. Reflect on Achievements As the year comes to an end, it's vital to acknowledge and celebrate your business's achievements. Take a moment to reflect on your wins, both big and small. Did you launch a successful marketing campaign? Expand your customer base? Receive positive feedback from clients? Jot down these accomplishments. Recognizing and appreciating your achievements not only boosts morale within your team, but also provides valuable insights into what strategies are working for your business. This reflection can serve as a foundation for setting future goals and objectives. 5. Acknowledge Challenges While celebrating successes is important, acknowledging and analyzing challenges is equally crucial. Take an honest look at the obstacles your business faced during the past year. Did you adapt to market changes? Overcome supply chain disruptions? Navigate an unexpected crisis? Identifying these challenges is the first step toward finding effective solutions. Documenting these experiences equips you with valuable knowledge, enabling you to make informed decisions and build resilience against future hurdles. 6. Name Your Goals for the Future Looking forward, it's time to put your sights on the future. Establish clear and achievable goals for the upcoming year. Consider both short-term objectives and long-term aspirations. Your goals should be specific, measurable, attainable, relevant, and time-bound (SMART). Whether it's increasing sales, enhancing customer satisfaction, or launching new products or services, having well-defined goals provides your business with direction and purpose. Regularly revisit and revise these goals as your business evolves, ensuring they align with your changing needs and aspirations. 7. Employee Check-Ins and Evaluations Your employees are the backbone of your business. Year-end is an ideal time to conduct comprehensive employee evaluations and reviews. Schedule one-on-one meetings with each team member to provide constructive feedback, recognize their achievements, and create expectations for the upcoming year. Effective communication during these evaluations fosters a positive work environment, boosts employee morale, and encourages professional growth. It helps you find areas where people may need more support or training, and ensures your team is ready for future challenges. 8. Security Check: Passwords Computer and online security is a critical aspect of modern business operations. Protect your business and sensitive information by regularly updating and strengthening passwords. Encourage employees to do the same. Consider implementing multi-factor authentication for an added layer of security. Change your passwords often to reduce the risk of unauthorized access and data breaches. You'll have peace of mind as you safeguard your business's digital assets and maintain the trust of your customers and partners. 9. Business Credit Confidence Maintaining a healthy business credit score is fundamental for securing financing, partnerships, and favorable terms with suppliers. As the year concludes, take the time to check your business credit score. Understand the factors influencing your score and take proactive steps to improve it if necessary. Timely payments, responsible credit usage, and accurate reporting are key factors that contribute to a positive credit profile. Regular monitoring of your business credit score ensures you're well-informed about the financial standing of your business. It also empowers you to make strategic decisions that support the growth and stability of your business. 10. Take a Breath In the midst of managing a small business, entrepreneurs often forget the importance of self-care. As the year concludes, if possible, allocate some time for yourself. Take some time off! Taking breaks, like vacations, spa days, or spending time with loved ones, is important for recharging energy and creativity. Stepping away from the daily grind allows you to return with fresh perspectives and renewed enthusiasm. You'll be better prepared to tackle the challenges and opportunities the new year will bring. With this year end business checklist, you're not just closing out the current year; you're laying a solid foundation for a successful and prosperous future. By investing time and effort into these areas, you're ensuring that your small business is well-prepared to navigate challenges and seize the opportunities that lie ahead.