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 Look for broken links, outdated content, and any other issues that might confuse potential customers or clients.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.

Small Business Matters Episode #20 In a world where 401(k) plans have long been considered a perk exclusive to large corporations, Penelope is a company on a mission to level the playing field. Penelope’s founder, Jean Smart, is working to make retirement savings accessible to everyone, specifically entrepreneurs and small business owners. Penelope provides a turnkey solution for retirement plans for small businesses with (and without) employees. Penelope doesn't just offer a solution; it's a testament to the power of passion and perseverance, shaped by Smart's years of experience in the financial services industry. With a background in product marketing and sales strategies for large companies, she intimately understands the value of 401(k) plans. These plans, which enable employees to gradually build wealth through regular contributions and investments, had been instrumental in securing her own financial future since she started working at 21. However, the COVID-19 pandemic served as a wake-up call for Smart. It prompted her to reflect on her own life and the broader challenges faced by small business owners and entrepreneurs, especially those closest to her heart—her family. She reflected on the relentless dedication of her parents, who operated a small business, and their lack of knowledge about retirement plans for small businesses with employees, like themselves, and how their future could have been different if they’d had that knowledge. This revelation struck a chord with her, igniting the spark that led to the birth of Penelope. Penelope, named after Smart's daughter, represents a personal journey, too. For Smart, It's about creating meaning beyond one's profession and ensuring future generations have the financial security they deserve. Smart took a leap of faith and embarked on a mission to democratize retirement savings for small businesses and entrepreneurs. "We want every employee, even the lowest paid employee of the smallest company, to actually have a shot at having a million dollars if they're working 40 or 50 years. Penelope gives them the tools to be able to do that."Jean Smart, Founder, Penelope Penelope makes retirement planning accessible and easy to navigate for small business owners. Overcoming the Hurdles of Small Business Retirement Planning The challenges faced by solopreneurs saving for retirement, and small business owners, no matter their business structure, in offering retirement benefits to their employees can be overwhelming. Financial constraints, coupled with the myriad complexities of retirement planning, often deter them. Penelope, however, sees these hurdles as opportunities for innovation. One of the biggest misconceptions is the belief that 401(k) plans are prohibitively expensive. While the cost can be a concern, Penelope leverages government incentives and offers a streamlined approach to make it affordable. Smart points to the Secure 1 and Secure 2.0 legislation, which provides tax credits of up to $16,500 for businesses getting started with retirement plans. Penelope also simplifies the entire process. Instead of drowning in a sea of questions and options, small business owners only need to answer a few essential questions to get started. “A lot of the plan design, it's sort of 1,2,3,” says Jean Smart. “Instead of making you answer 130 questions, we just ask a few questions around eligibility. A big portion of our plans are what we call safe harbor, which has a matching component, and we do that because that will save small business owners a significant amount of time in administrating and going through auditing and compliance testing down the road.” Another common myth is around the perceived complexity of investment choices. With over 6,000 funds available, choosing the right ones can be daunting. Penelope takes a straightforward approach by offering index funds based on an employee's birth date, known as target date funds. These funds are managed by a world-class asset manager, ensuring a balanced and safe investment strategy that adjusts with age. Technology Empowering Small Business Owners Penelope's innovative model extends to its pricing structure. While many providers employ assets under management pricing, Penelope opts for fair, flat pricing. They charge for the general expense ratios of maintaining and administering the fund, eliminating the costly asset-based pricing that accumulates over time. This forward-thinking approach potentially saves employees hundreds of thousands of dollars over their working lives. The heart of Penelope lies in leveraging technology to provide maximum value. Their goal is to ensure that every employee, regardless of their role in the smallest of companies, has the chance to accumulate a substantial retirement fund. By automating processes, integrating with payroll providers, and simplifying the entire experience, Penelope makes retirement planning accessible and hassle-free. For younger entrepreneurs and business owners, the Penelope platform is tailor-made. Strengthening the Next Generation of Entrepreneurs For younger entrepreneurs and business owners, the Penelope platform is tailor-made. The digital nature of the service aligns perfectly with a generation comfortable with online tools. Starting early, even if retirement seems distant, is a crucial piece of advice from Jean Smart. “The only thing that I could say is start early. The best time to save for retirement is 20 years ago. The second best time is today. The third best time is tomorrow. That's it. There's nothing after that. And it is much easier through these technology platforms when you're taking a little bit of your salary every two weeks compounded over time, and everything is automated.” The earlier you begin saving, the greater the potential for wealth accumulation. The platform's ease of use, automated features, and integration with various payroll providers resonate with the tech-savvy Millennials and Gen-Z entrepreneurs and workers. It's an opportunity for them to take control of their financial future without the burden of complicated administration. A Special Focus on Women and Women of Color Smart emphasizes the importance of retirement planning, especially for women and women of color. Women tend to earn less, live longer, and take on primary caregiving roles, making it imperative to start early. Penelope aims to empower women through education and simplified processes, reducing the intimidation factor often associated with financial planning. Recognizing the unique challenges faced by women and women of color, Penelope offers multilingual support and strives to eliminate financial jargon. Their goal is to ensure that every woman, regardless of her background, can confidently navigate the path to financial security. "The best time to save for retirement is 20 years ago. The second best time is today. The third best time is tomorrow. That's it. There's nothing after that."Jean Smart, Founder, Penelope Penelope also simplifies the entire process of retirement planning for small business owners and entrepreneurs. Success Stories That Inspire Penelope's impact can be seen through the success stories of its clients. Take, for instance, Roberta, the founder of a nonprofit theater company in New York. Penelope provided a streamlined solution that allowed her to offer retirement benefits to her employees, enhancing their financial well-being. Jefferson, a former Wall Street trader and restaurant owner, chose Penelope to simplify retirement planning for his diverse group of employees. The platform's user-friendly approach and multilingual support made it a natural choice. Another client, a former lawyer who started her own practice, found Penelope to be the answer to her retirement planning needs. It offered the simplicity she required as she transitioned into entrepreneurship. These stories reflect the diverse range of businesses that Penelope serves, united by their shared need for accessible and efficient retirement planning solutions. A Bright Future for Retirement Savings In a post-COVID world, entrepreneurship is on the rise, and Penelope is at the forefront of helping the people behind these new ventures secure their financial future. Through innovative technology, fair pricing, and a commitment to education, Jean Smart and Penelope are empowering small business owners, especially women and women of color, to take control of their retirement planning. Penelope's mission is not just about numbers; it's about securing brighter, more financially stable futures for those who dare to dream and build. Penelope is not just a retirement platform; it's a beacon of hope for a more inclusive and financially secure future. To learn more about Penelope and its mission, visit www.Penelope.co, and take advantage of their complimentary consultation to explore how they can help you secure your financial future. “We want every employee, even the lowest paid employee of the smallest company, to actually have a shot at having a million dollars if they're working 40 or 50 years,” Jean Smart says. “Penelope gives them the tools to be able to do that.” Read the transcript of our interview with Jean Smart about retirement plans for small business owners, or listen to her on Episode #20 of our Small Business Matters podcast! Watch Our Interview What follows is a lightly edited transcript of our interview: Emily Garman: Hello, and welcome to Experian’s Small Business Matters podcast. My name is Emily Garman. Joining us today is Jean Smart, the founder of Penelope, a company whose mission is to make 401K's and retirement plans available to everyone, especially entrepreneurs and small business owners. They develop software to make this not only affordable and possible but simple. Usually, 401Ks can only be offered by large companies that can afford the infrastructure to provide this benefit to their employees. Penelope believes that anyone, no matter their business structure, should be able to open a retirement account if they want to. Well, Jean, thank you so much for joining us today. I'm really excited to talk to you here. So tell us a little bit more about your background and what inspired you to start Penelope. Jean Smart: I have been working in financial services for most of my life. And a big part of what I was doing was helping large companies set up their workplace and employer benefits, doing product marketing, sales strategies. So,  I was very familiar with it and I've been doing it for so long that one of the things that I noticed, and this happened for me personally, is that this 401k product that large companies offer when an employee starts putting a little bit of their paycheck over time, compounding that interest and putting it into the markets that it was generating wealth for a lot of people, a lot of households. So I always knew that. And for me, it was something that I had started when I started working at 21. And after a couple of decades in corporate America, that had grown to a really good nest egg. And it was something that I really felt compelled to do.  and I think for a lot of us, COVID was a reset. What are you doing with your life? How are you working? How are you spending your time? I mean, truly, it was life or death. It gave me pause to think about, is there a way I could turn what I'm doing and do it in a very different way? So Penelope was born; it's a very personal journey on a lot of different fronts. I spent a big chunk of COVID very near my family. I live in New York, but my parents are in Southern California, and I got to see them a lot, of course, outside being safe. And I got to see all the hard work that they put in, in their small businesses. But they just didn't know what a 401k plan was. And I thought, man, if this is something that they knew about earlier on, they could be in such a different position now. They're doing great, but it's just something I thought about a lot during COVID. And finally, Penelope's the name of my daughter. It's named after literally the direct beneficiary of my 401k plan, my husband's plan; she will benefit from everything her parents and her grandparents have done. And I think, often when we work, we're looking for meaning beyond just what we do and what our professions are. And a lot of that is for this next generation. So it kind of cobbled together, came through like in that moment. And, then I jumped off a cliff and made the big leap to starting the company. Emily Garman: Wow. That's really inspiring to know. And I like that, thinking about the why and the reason why we're doing what we're doing. So I would think that a lot of small business owners, if they're thinking about this, they're thinking, well, I just couldn't afford it for my employees. Or, it's just me, I'm a solopreneur. So, what are some challenges that solopreneurs and small business owners face when thinking about offering these kinds of benefits to themselves and their employees. And how are you addressing those challenges? Jean Smart: So first of all, the good news is I feel like there's more support. There's more help at both the Federal, State and just in the public sector space. So there's probably more support today than there ever has been. But I will say there are a lot of choices and a lot of confusion. So I think for solopreneurs and small business owners, you're counting every dollar, every penny, you're looking at your customers, you're looking at expanding your business, you're looking at keeping your employees and you're dealing with a lot of the pressures of running the business across a lot of dimensions. So when you're thinking of benefits, oftentimes people go to health. Medical, dental health benefits, and that can be quite sizable. Then you're looking at other benefits, like maternity, family, there's so many different options, but the 401k plan right now is our singular most, proactive stance that we could take for employees and ourselves to creating financial security when we're older. I don't know if you have seen this or not, but if you actually go to the Department of Labor website, Social Security is running out in 10 years. So that security that we all banked on are certainly generations before us. I don't think it will ever go down to zero, but it won't be the fulsome amount we've had in the past. So the government has passed some legislation. It's called Secure One and Secure 2.0, to actually incentivize a lot of small businesses into taking action. So there's up to $16,500 tax credit for starter cases. People have never had a plan to get started to help support matching, to help support the cost of it, et cetera. Also, we've got Google. When you go on Google there, there's so much, but again, you can get to analysis paralysis. What we designed specifically for small businesses and employers, is something where we did a lot of the thinking for them. So a lot of the plan design, it's one, two, three; instead of answering 130 questions, we just ask a few questions around eligibility. A big portion of our plans are what we call Safe Harbor, which is a matching component. We do that because that will save small business owners a significant amount of time in administrating and going through auditing and compliance testing down the road. So again, we designed it so that they're answering four questions versus 130. And a lot of people can get overwhelmed by investment options too. There's 30,000 funds, 50,000 funds; how do I choose? We take index funds based on an employee's birth date. They're called target day funds, working with the world class asset manager. And we automatically put them in a set of investments that help investors manage the risk. Which is basically the ratio of equity to bonds over time so that the portfolio is a little more safe or conservative as they get older. And then a big part of what we also do is, we price fairly, we have flat pricing. So a lot of the providers today customize a robust plan based on complexities, maybe sometimes proprietary funds. There are a lot of intermediaries in the mix. We just pay per use. And one of the things that really differentiates our plan from others is this thing called AUM, which stands for Assets Under Management pricing. We don't charge that. We do charge the general expense ratios of the cost of maintaining and administering the fund that our providers use. But we don't do it because we're using a very modern tech platform and service model to simplify it. What that translates to, it could be just, a couple of cents a day, a couple of dollars a week. But that additional asset based pricing over a lifetime can mean hundreds of thousands of dollars to go into the employee. And our north star building this has always been to leverage technology, not to take away from the experience to provide the most maximum value. So we want every employee, the lowest paid employee of the smallest company to actually have a shot at having a million dollars if they're working 40 or 50 years. So you can do that. And, and that's how we structured our product. Emily Garman: And that seems really appealing for a young entrepreneur, a young business owner, even though that person may not be thinking so much about retirement. It seems like a really long time away, like they've got all kinds of time in their life before that happens. And as those of us who are a little bit older know, it really does creep up on you pretty quickly. But for a person who's young, not necessarily seeing that this is something that maybe they need to think about right away, he process you've described is just a few questions instead of hundreds of questions. It's an online platform. They can communicate with experts via chat, instead of making phone calls; those things sound really like they're appealing to a younger generation of entrepreneurs. Jean Smart: Yeah. I think if you're young, younger, the better. I actually think are the younger generation, millennial Gen Z; they're probably the smartest, most robust generation. I really have a lot of hope for the future, but I do think they're overwhelmed. I think there's so much information out there. But they're comfortable with digital tools. And the only thing that I could say is start early. The best time to save a retirement is 20 years ago. The second best time is today. The third best time is tomorrow. That's it. There's nothing after that. And it's much easier through these technology platforms when you're taking a little bit of your salary every two weeks compounded over time, everything is automated. We integrate with over 150 payroll providers. So no matter who you're using, we're able to make it really fast. So you're not having to manually do reports or check on it all the time. You want to set it and forget it. But before you set it and forget it, you want to make sure you've got the right funds. You want to make sure you know exactly what you're paying for at each step. And you want to make sure that you're checking in and your provider is accredited and can provide all the education and support that you need. I think one of the things about these flat based pricing or subscription models, a lot of the younger business owners are already using it for small business enablement. They may already be using their PO, their payroll, their accounting software already. So just integrate this into your core step and make it as easy as possible for you. Emily Garman: I'm curious if you could talk a little bit about how important this is, particularly for women. A lot of women are becoming entrepreneurs. They're becoming small business owners, creating jobs and particularly women of color. I mean, we see Black women are far and away that the highest percentage of businesses being started are by Black women now and during COVID as well. I think of a few people in my life who are older women, whose entire retirement livelihood is dependent upon what their husband did when he was working. So talk about just the concept of preparing for retirement for women, young women, women of color. Jean Smart: I am a woman of color. I am an immigrant.  I was born in Seoul, Korea.  I didn't really, we didn't talk about stocks and bonds at the dinner table growing up. My parents were really busy starting their businesses. Getting their family in order and making sure everything was right. I mean, they just had a lot going on. So I think they had a lot of big dreams about their children going into professional services and business and, having things become easier and looking back, starting my own business and having been in corporate America. I think all of it's hard, and especially for women of color. We know particularly how hard that is. And when I think of women, not just women of color, and retirement investing, women still make less, live longer and are the primary caregivers, are responsible for children, primarily a lot of the work at home as well as for their parents. So to start early, you've got almost all the things kind of going against you. So you've got to start earlier. And I did a lot of thinking about that. And I thought a lot, actually, of my mom. And when they were at their businesses, I actually, I remember growing up reading a lot of their business mail because English wasn't the first language and they certainly didn't understand some of the tax laws or business letters and notices that they were getting. So I remember how stressful that was. And a big part of what she really wanted was, can you give me oversight? Can you read this and tell me what I should do? Can you do this for me? So a lot of what we built in Penelope in terms of cutting out the intermediaries, pricing it per use and putting the best investment with the least amount of effort was kind of designed with her in mind. And so it is one, two, three, a few clicks. You can on board in 15 minutes and we're going to be doing it in a couple different languages next year for minority business owners who are more comfortable with other languages. So we've got that feature built in. And I mean, I'm there, I'm right there. I had the fortune of birth to have parents who stayed together, who took care of us, who paid for my education; that really set me off. But I realized there's a lot going against us, but you know what? We show up, things are hard every day. We know what to do and we are committed to doing it.  This is something we can't short out on. This is something we have to do. And whether it's with our platform or another platform, get educated, spend 15 minutes a day doing research or 30 minutes, and then make the decision in a couple of weeks and just check it off and then you're done. You can put it aside and move on to your next challenge. But it is something particularly for women and women of color to own and to do, especially if we are parents, to teach our children about. So, I get it. We have a ton of loom videos and education sessions and a significant portion of our clients are women-run businesses, are foreign-born business owners. And we welcome that group. I absolutely understand what that seat is like. And we try to do our very best to reduce jargon and just speak plain English. So that they're not intimidated, and they can get started right away. Emily Garman: So when you're talking to those folks, in those interactive sessions, I'm curious. Obviously knowledge, just understanding how this all works, is a barrier because people may be reluctant to engage because they just don't understand it. But what are some myths or misconceptions that people have about 401Ks, and retirement plans that maybe you could share with us? Jean Smart: I think the biggest one is should I match or should I not? I can't afford it. And I think a big part of what we do is, we've got a tax calculator that provides a general estimate about how much their savings can be, and what they imagine is thousands of dollars every month ends up being a few hundred and it is accessible. And that there are all new sorts of new tax regulations and tax changes that come into play. We are not CPAs, so we always make sure that we encourage them to talk to their accountants, but part of it is just that education. And I think the other part beyond the cost is, how much work do they have to put into it? What do I have to do every two weeks? Am I going to have to create spreadsheets? What do I have to communicate? And we take care of all of that for them. We give them a welcome kit with sample emails to educate and send to their employees. We have many triggers, alerts, emails, and communications set up. We've got security built-in with two-factor authentication. We've got so many things that are automated that the idea of cost and labor is probably the biggest inhibitor. And once we do a quick demo and share what we've got, it's a fairly easy conversion, honestly, for small business owners to take any time talking to somebody is a big deal. So when they're there, we do our best just to answer their questions and make sure that they get what they need so they can move on to the rest of their day. Emily Garman: Well, in that vein, do you have any success stories that you'd like to share? Jean Smart: Yeah, so I'm thinking of a couple of clients.  Our first client is Roberta. She's the founder of a non-profit. It's a theater company here in New York. And as soon as you hear the word non-profit, people don't go into non-profit thinking "I'm going to make a lot of money." They're going into it for a passion for, in this particular case, for the arts. She's had this company for about five plus years and always wanted to do this, but just didn't have an opportunity or find a solution where she didn't have to then learn about financial services and learn about investments or pay high advisory fees. She wanted to get something set up reasonably quickly and have her employees understand and adapt to it. So we helped her set up a plan, and her employees have been happy. They're high participation rates for her. So we're really glad. Another client of ours,  Jefferson, is one of our very first clients, he heard about us on a Motley Fool podcast and was really interested. And he's a former Wall Street guy, a trader, he knows investments, knows everything about this space. And he's got a restaurant in Boston, four of them in a big holding group; they're using different payroll providers, but many of their employees are wage earners.  He's very committed to making sure that his managers, the prep cooks, and the front group are saving and really thinking about it. Certainly, it's something he's done in investments for a long time. So he chose our plan over the Massachusetts Restaurant Association plan knowing it would be easier for his employees.  Some of them speak different languages. Some of them were born in other countries. He was also very much thinking about costs and about the decisions that a lot of his team would have to make. So we've been working closely with his manager teams to make sure that the education component, the onboarding component, and the experience are as seamless and as straightforward as possible. So, that's a client that has been with us from the very beginning that we're really honored to serve. A third one is a professional; it's a former lawyer who took some time off. She was a partner at a law firm and took some time off to spend more time with kids, starting her practice and going into our own business and setting that up. And she's getting older, thinking, oh my gosh, I'm forgetting to set up my 401k. This is something I've got to do because there was that gap. So finding a platform, a product set, finding us, who would make it easy to serve, she's got two people right now, I think was a huge plus for her. So these stories are a little bit every day we cross, and we serve many different industries. But I would say the common denominator is they're often smaller in employee size.  They're just getting started. They've got employees.  Generally, this is their first investment vehicle, so they would need it to be really simple. And the education is a big component of it. And they want to make sure they're getting the best deal. There are small business owners, and all the budgets, in the world are important. So those are the things we try to make sure that we're focused on all the time. Emily Garman: It's so interesting that so many entrepreneur stories are coming out of COVID. I mean, yours included, and the people you're helping are coming out of COVID, a lot of people decided to change the trajectory of their careers, or they decided they wanted to do something completely different. And so what you're doing is helping them prepare for the future. Jean Smart: I think it was something like 700, 000 new businesses started during COVID. And then more and more people are leaving larger organizations to try it on their own. And a big part of it is technology. With the platforms we have, you can set up your online store. You can do your own advertising. You can actually get customers and do presentations and demos through Zoom. The way we work and the way we operate is completely different. And many had a full-time job and a side hustle. And during COVID, they decided to turn that side hustle into a full or full-blown business. So it is exciting to see a lot of creativity happening for sure. Emily Garman: Yeah. People doing things that they love makes a difference for them and for the world and their communities. And I think that's terrific. So,  thank you so much for being here. I've learned a lot about what you do. So please tell us where our listeners can find you online and get in touch. Jean Smart: Sure.  You can find us at www.penelope.Co. Please join us. We've got a complimentary consultation. It's just 15 minutes to talk to any of our specialists about what we can offer. So please sign up there. And we're also on Instagram, LinkedIn, Facebook, and all the social media outlets, so please check us out, find us. And again, thanks for listening. Emily Garman: Thanks so much, Jean. We're really glad to have you on today.

In this episode of Experian's Small Business Matters Podcast, Shaun Bull, founder and owner of Enterprise Consultants Group, explains what tax resolution involves and how his firm assists small businesses in efficiently resolving their tax matters to get them back on track. He provides insight into the most common tax mistakes small business owners tend to make, and shares some success stories of clients his firm has helped turn around. He also helps clear up a few myths around the IRS and whether they will negotiate IRS debt, even with business owners owing millions in back taxes. Listen in and see if a business tax resolution specialist might be able to help your business. 00:00 Introduction to Shaun Bull and Enterprise Consultants Group00:11 Understanding Tax Resolution and Services Offered01:20 Importance of Proactive Tax Management for Small Businesses02:23 Common Tax Mistakes Small Business Owners Make03:44 How to Start Resolving Tax Issues05:10 Tips to Avoid Tax Troubles06:45 Success Story: Resolving a Major Tax Issue08:56 Understanding the Cost and Benefits of Tax Resolution Services09:25 Debunking Myths about IRS Negotiations09:54 Rewards of Running a Small Business10:14 Conclusion and Contact Information Watch Our Interview What follows is a lightly edited transcript of our interview with Shaun Bull. Emily Garman: Today we're speaking with Shaun Bull, founder and owner of Enterprise Consultants Group, a tax resolution firm in Los Angeles. Shaun, welcome to the Small Business Matters podcast. What is tax resolution really? Shaun Bull: We're resolving tax matters. As we know, as small business owners, taxes are always a pretty large expense. You may, get into a situation where you can't afford to pay or you may get into a situation where you have for whatever reason gotten off track. And so our job in Enterprise Consultants Group is to listen to the business owners concerns as it relates to taxes and find ways to efficiently resolve the tax issue, whatever it may be, and get that business owner back on track. Our goal after that is to try to maintain that relationship with that business owner and at least move forward with filing their tax returns on an annual basis. We offer other services such as incorporation services, all services related to opening or closing a business. Emily Garman: It sounds like you can help a business from beginning to end. So if someone's just thinking about starting a business, you can help them with the paperwork, getting everything set up correctly. Shaun Bull: Being proactive about having your taxes under control is by far and away the best way to stay out of getting into tax trouble. As simple as it may sound, it's very true. You want to have good advice going into it and make the right moves from the beginning, because if you don't, once you start the business and running revenue, it can be increasingly difficult to get things set to where they're supposed to be if you don't start off that way. So you want to start off on the right foot, we definitely do that here. We do a lot of consulting. We get a lot of calls from business owners who are just starting out. Want to make sure that they're putting the right foot forward. And yes, I would say that we can definitely handle it from A to Z. Emily Garman: Most of our listeners are small business owners, entrepreneurs. And I think it might be interesting if you can share with us the most common mistakes that you see small business owners making when it comes to taxes. Shaun Bull: When it comes to getting into tax jams, I would say the most common would be, believe it or not, divorce. What happens with small business owners, just like anyone else, is divorce wreaks havoc on the finances. A lot of what we see with small business owners is, they'll have their spouse doing the books. If that spouse is doing the books and the other person is doing the work, you can already see where this is going. It creates problems and the business owner gets off track with the taxes. They don't know where to start in terms of wrangling the books, the numbers and it eventually leads to having some tax problems. So that is the number one. I would say the second would be not having a good accountant. It's amazing in our industry, how many times we see where someone says, ‘everything was going great until my accountant died’ or ‘everything was going great until I stopped doing business with my accountant.’ That can, of course, lead to tax trouble. Emily Garman: Where does somebody start when they've got back taxes or they have a dispute or they're just in trouble in general, they make a phone call to you, right? Shaun Bull: Right; in short, we go on a fact finding mission and we start by asking the business owner a series of questions to find out all of the necessary information. From there, we contact the IRS. We also do that for free. We call it a compliance check. They have a division of the IRS that's set up exclusively for tax practitioners and we deal with them on a daily basis. We call them with the taxpayer or business owner and we look at it like popping the hood on a vehicle, right? If you've got a vehicle that's broken and you don't know why the car isn't running. Naturally, the first thing you need to do is pop the hood and find out exactly what the problem is so that you can find out what the repair will be and therefore what it will cost. And you go from there. It's similar for us. We need to find out exactly, what the cause of the problem is, and if we can address it, and then design a business tax resolution plan to resolve the matter from there. Emily Garman: What are some things that everybody can do to make sure to minimize the possibility that they'll get into tax trouble later? Shaun Bull: That's a great question. I would say the number one tip to minimizing the chances of you getting into tax trouble would be to either A, have a bookkeeper who you are in constant communication with. If you're communicating with them effectively, at least once a month. That would be the number one tip. Number two, if you don't have a bookkeeper, you want to do your own bookkeeping, which I'm a big fan of. There's all types of software out there for bookkeeping. And I think that it's important for small business owners to constantly watch their money. So using software like QuickBooks. You can, on a daily basis, see the transactions, you can see the money coming in, the money going out, and you can see the money getting categorized in with that information that you're looking at on a continuous basis. It will be difficult for you to get off track with your taxes, which could lead to you getting behind and then being in a situation where you can't afford to pay. So I would say, in short, it would just be to watch your money either have a bookkeeper that you're working with. Where you can constantly watch the money or do it yourself, through software such as QuickBooks. Emily Garman: Do any stories come to mind of people who have used your business tax resolution services, who have made a great turnaround or ended up as a real success story because of your services? Is there anybody whose lives have changed because of the work you were able to do with them, or the money you were able to save? Shaun Bull: One of my favorite success stories where we were able to change a client's life; this client is in the horse racing industry. He rehabs racehorses, like a Seabiscuit story. It's pretty cool. He rehabs horses and gets them out there to racing again. He approached us because he came across a business opportunity for which he needed a gaming license for the state of New Jersey. I believe he got behind on taxes. He had a few years where he hadn't filed the taxes and he owed quite a lot of money. It was over $250,000 to the state. He needed to get this gaming license by a certain date, but he had a tax lien filed by the state and there was no way that the state was going to issue him this gaming license.With the tax lien, I knew that it was it was going to be a pretty difficult case because the state of New Jersey is pretty difficult to negotiate with. And I also knew that the deadline that we were given, it was going to be pretty stressful, but it was doable. Long story short, we were able to get in, hear him out. Of course, we went through our same process where we go on the fact-finding mission. Long story short, we were able to settle the tax debt with the state of New Jersey out of the over $250,000 that he owed. He only ended up paying back something like $30,000. He paid that $30,000. The lien was lifted and he was able to obtain that gaming license before the deadline. Emily Garman: One of the things you mentioned a couple of times is that all of this investigation, and meeting with the person to get their story up front is at no charge. And that was something that was surprising to me. I figured that cost would be a barrier to utilizing your services. So what are some other things that you want to make sure people know about your business and what you do? Shaun Bull: A lot of business owners don't believe that the IRS will negotiate and that's simply a myth. It's not true. I have had business owners who have owed into the millions in tax debt, and we've settled for as little as $5,500. There are programs that you may or may not qualify for, and there's absolutely a business tax resolution strategy that is required in order to see it through with success, but it's definitely doable. Emily Garman: So as a small business owner yourself, what's been the most rewarding aspect of that for you, of being self employed? Shaun Bull: The most rewarding aspect of running a small business for me is the autonomy. The ability to do things without having any limitations or any governance. Emily Garman: Shaun, thanks for taking the time to be here with us today on the Small Business Matters podcast. I've learned a lot about business tax resolution and actually my own taxes in the time that we've spent together. Thanks for sharing your story with us. And can you let our listeners know where they can find you online? Shaun Bull: Sure. Absolutely. You can send me an email direct Shaun G that's S H A U N G at enterprise consultants group dot com, or you can connect with me on LinkedIn.

At first glance, Laura Lady's storied career in toy marketing might not suggest her foray into tackling pressing environmental challenges. However, her Founder’s journey is a testament to her passion and versatility. Dinner Conversation Spawned Idea One evening, amidst the laughter and camaraderie of a dinner party, the topic shifted to the then-recent discovery of a 'fatberg' in East London's sewers. This enormous mass, equivalent in size to two London double-decker buses, was a clogged accumulation of fat and waste. Though the term 'fatberg' was new to Laura, it sparked her curiosity, leading her down a research rabbit hole. She soon found that such blockages resulted from careless waste disposal, especially the pouring of oils down drains. This not only created blockages but often caused sewer overflows, contaminating waterways. The challenge became more personal for Laura during the COVID-19 pandemic. While cooking at a farmhouse on septic, she was confronted with the dilemma of disposing of used cooking oil. The uncertainty of the pandemic made traditional recycling options less accessible. This was the catalyst for Laura, prompting her to think: "There really has to be a better way." With a series of kitchen experiments, Laura began to create a solution that was both user-friendly and good for the environment. When she felt confident about her product, the next hurdle was production during a global pandemic. Her decision to move her family out of the city to a rural setting came with the benefit of a large 2-car garage, perfect for a small home-based manufacturing plant where Laura ran small batches of her invention and gauging product viability. Environmental Leap of Faith Starting FryAway didn’t come without risk. But in Laura’s case, the risks were calculated, leaving a prestigious role at Lego and relocating her family back to the U.S. Laura was able to develop FryAway while consulting for foreign toy companies entering the U.S. market. The beauty of her entrepreneurial journey was the freedom it accorded her, especially in choosing who to work with and setting the tone for her company. For Laura Lady, owning her business provides a unique blend of flexibility and purpose. It allows her to strike a balance between family, personal time, and business, while also addressing a significant environmental issue. With FryAway, Laura Lady has once again shown her knack for transformation – this time, turning used oil into a solution rather than an environmental problem. Learn more about Laura Lady and FryAway More Founder's Narrative Stories: Related Posts Share Your Story

Mike Olsen's story is a testament to resilience, adaptability, and the undying spirit of entrepreneurship. Last month marked 23 years since Mike bid farewell to his military life, a period in which he served as an M1-A1 Armor Crewman in the U.S. Army. His role as a 19K had him operating tanks, a role demanding precision and unwavering commitment. Leaving the Army in 2000 with an honorable discharge, Mike's initial journey into the civilian world was riddled with its set of challenges and learning curves. At a young age of 24, he ambitiously ventured into the world of business, purchasing a bar. What was intended to be a side gig quickly evolved into a full-time business commitment due to unforeseen challenges with his business partner. Four eventful years later, and after the birth of his identical twin girls, Mike made the pivotal decision to sell the bar. This choice allowed him to refocus on his union job with KEYSPAN and embrace the joys of starting a family. Fast forward to the present, and Mike stands at the helm of Evenflow Sewer and Drain Service, a venture he's proudly nurtured for three years. From pumping septic tanks to line clearing, Mike's dedication to quality service remains unwavering. Yet, just like any other small business owner, he faced financial hurdles, especially in the formative years of his enterprise. Enter Experian Business Credit. This platform became Mike's guiding light, allowing him to monitor his business credit closely. "Without Experian Business, I'd be in the dark about my financial standing," Mike reflects. Not only has the platform helped him stay prompt with his payments, but the insights it provides, like the 'Days Beyond Terms', have played an instrumental role in enhancing his financial literacy.In the initial years, Mike grappled with unfavorable financing options. However, with the support of Experian Business Credit Advantage, he not only secured business credit cards that seemed elusive due to his personal credit standings but also saw an uplift in his credit limits. "I check my Experian business credit profile almost religiously," Mike admits, emphasizing the role of real-time feedback in enhancing his creditworthiness. From navigating the intricate terrains of the Army to maneuvering the dynamic world of business, Mike's journey stands as a beacon of inspiration. With the continued support of platforms like Experian Business Credit, there's no doubt that he's poised for even more success in the years to come. Listen To More Customer Testimonials

Braxton Fleming isn't just any entrepreneur; he is one with a deeply personal connection to his business, Stealth Bros & Co. As a transgender man, the initial inspiration for his venture stemmed from his own need for a place to store hormone replacement therapy medications. What began as a basic idea, rooted in personal necessity soon evolved into a thriving enterprise as Fleming keenly observed the needs and desires of his community. His innovative drive led to the creation of the "Junior Dopp Kit," a product that he meticulously designed. While many entrepreneurs boast about swanky offices or sophisticated origins, Fleming's journey paints a picture of true grassroots entrepreneurship. Orders for Stealth Bros & Co were initially fulfilled right from his childhood bedroom. From there, he transitioned to using the basement of his home, and as the demand grew, he upgraded to a more spacious two-car garage. Balancing personal life and work has always been a challenging act. Fleming, while starting his business, was juggling responsibilities as a licensed practical nurse. He managed this dual role until the birth of his daughter last year. His appearance on the famed reality show, Shark Tank, was a game-changer. Describing the experience as both "a gift and a curse," the positive outcomes were undeniable. Stealth Bros & Co not only secured funding but also enjoyed a substantial boost in brand visibility from the show's vast audience. When asked about the perks of entrepreneurship, Fleming doesn’t point to financial gains or fame. Instead, he cherishes the flexibility and freedom it provides. Being his own boss allows him to be present at home, witnessing every milestone in his daughter's life—a luxury many parents can't afford. For those eager to explore Stealth Bros & Co's offerings, the company's online presence is a comprehensive resource. You can visit their website at www.stealthbrosco.com, or check out their social media handles @stealthbrosco. Want to be featured on Founder's Narrative? Share your story with us–it's quick and easy! We'd love to meet you. Related Posts Share Your Story

Selecting a legal structure for a business is one of the first things you’ll have to do when you decide to start one. This is an exciting but potentially hazardous time for entrepreneurs. There are many things to consider, from creating a business plan, to establishing financing, to figuring out how your business should run legally.  Choosing a legal structure for your business is critical because your decision determines how you will be taxed, how much control you will have over your business, and how much personal liability you will incur, among many other things. In this post, we'll discuss the most popular legal structures so you can confidently choose the one that best suits your needs. Different Types of Business Legal Structures Sole Proprietorship A sole proprietorship is by far the simplest of all business legal structures. It's essentially an extension of the owner, which means that the owner is solely responsible for all the company's actions and debts. There is not a lot of paperwork because you have no partners and you do not have to create a board of directors. It is best suited for entrepreneurs who only want to start small and do not expect to take on additional partners or investors. Sole proprietors have complete control over their businesses and can remove themselves as the owner whenever they please. A sole proprietorship is a great choice for several other reasons. It’s usually the most affordable to set up. Expenses you can anticipate are any state and federal fees, taxes, business equipment, office space rental, and any professional services or items your business might require—like attorneys, cleaning services, bookkeepers, uniforms, etc. As a sole proprietorship, you may be eligible for specific business tax benefits, such as being able to deduct the cost of your health insurance premiums. Sole proprietorships are also relatively easy to end, if you decide to close your business. You can dissolve your business at any time, with no paperwork or announcement necessary. In fact, it’s much easier to end a sole proprietorship than it is to end a marriage! The Downside of Sole Proprietorship Setting up a sole proprietorship also has downsides and risks. One major concern is unlimited personal liability, meaning your personal assets are at risk if the business faces financial troubles or lawsuits. Limited access to capital and resources is another downside. Sole proprietors may find it difficult to secure financing or attract investors due to perceived instability, potentially hampering business growth and competitiveness. It also might be more difficult to attract top-tier employees or partners due to perceived instability, which can limit growth as well. Partnership There are two types of partnerships: general partnerships and limited partnerships (LLP or LP). A general partnership is when two or more people own the business, sharing management responsibilities and risk. All partners in a general partnership have unlimited personal liability for the debts, obligations, and legal actions of the partnership. This means that your personal assets can be used to satisfy the partnership's financial obligations. A partnership could be a good setup for you if you’re thinking of starting a business with a friend or family member. A limited partnership consists of at least one general partner and one or more limited partners. General partners manage the business and have authority over its operations, while limited partners are typically passive investors with limited involvement in management decisions. You will need a partnership agreement, and it’s in everyone’s best interest to have an attorney at least review that agreement. Benefits of a limited partnership include sharing expertise and responsibilities with your partner(s) while limiting your personal liability, and flexibility in terms of partnership agreements and the allocation of profits and losses. A partnership increases your likelihood of securing a business loan, as multiple owners allow banks to consider multiple credit histories. This is helpful if any of the partners have poor personal credit. Eventually your business will have its own credit score (learn about Experian’s blueprint for establishing and building business credit), but at the beginning, lenders will consider the personal credit scores of all partners. Potential Risks of Partnerships As in any relationship, you have to consider the potential drawbacks as well when deciding on a legal structure for a business. It's critical to choose the right partners, and be clear on how much capital each partner will contribute from the very beginning. You must also clearly define how profits and losses will be split among partners, based on what criteria. It's also worth talking about exit strategies and how that would work if one or more partners wished to leave or close down the business. In general, businesses that are partnerships do not pay separate business taxes (but there are always exceptions); instead, the income is passed through to the partners’ personal income tax returns. It is possible (in your partnership agreement) to set up different tax burdens and different shares of the business income for different partners; it doesn’t always have to be split equally. It’s important to note that Limited Liability Partnerships (LLPs) and Limited Partnerships (LPs) are not the same thing. While both are limited partnership structures, they have distinct characteristics, purposes, and legal implications. While both LLPs and LPs involve partnership structures and offer some form of limited liability, they serve different purposes. Professionals (lawyers, etc.) commonly use LLPs and this allow partners to actively engage in business operations while enjoying liability protection. People often employ LPs for investment ventures, with general partners managing the business and limited partners providing capital but having reduced liability and involvement. It's crucial to understand the nuances of each structure and choose the one that aligns with your business goals and industry. You should consult with legal and financial experts to make informed decisions based on your specific circumstances. It’s an up-front expense, but one that could save you a lot of money in the long run. The downside of partnerships Setting up your business as a LLP or LP has its drawbacks. For LLPs, it involves complex formation and compliance processes, which can be time-consuming and costly. Additionally, partners may have limited control, leading to potential conflicts. In the case of LPs, limited partners face restricted involvement in daily operations, making it less appealing for those seeking an active role. Attracting investors can also be challenging due to perceived risks, and LPs can be less flexible in terms of dissolution or restructuring. Both structures provide liability protection, but come with complexities and limitations worth considering. Limited liability Company LLCs offer both protection and flexibility, and the LLC is a popular choice for a legal structure of a business. They protect you from personal liability and provide tax flexibility similar to sole proprietorships and partnerships. However, owners (called members) are subject to self-employment taxes on their share of the profits, which can be higher than regular payroll taxes. Depending on where the business is located, LLCs may have restrictions on how long the company can exist, and their members must be permanent residents or US citizens. Like limited partnerships, LLCs protects owners from personal liability for the company's debts and legal actions. This means that if your company gets sued, your personal assets (generally speaking) are off-limits. Additionally, LLCs provide flexibility in management and ownership, allowing members to choose how the company is managed—either by the members themselves or by appointed managers. LLCs can have a single-member structure or multiple members, accommodating various business sizes and types. On the other hand, dissolving an LLC can be more challenging than for sole proprietorships or partnerships, requiring compliance with state-specific regulations and potentially leading to additional expenses. While limited liability is a key advantage, it might not fully protect members if they personally guarantee business loans, which could happen if the business is just starting out and has no business credit score, or if the business is a sole proprietorship. Some states impose an annual fee or franchise tax on LLCs, which can add to the overall cost of maintaining the business. S-corporation S-corporations are tax entities, meaning that they exist to help small businesses save money on taxes. To qualify, the business must have less than 100 shareholders and meet other IRS criteria. If you own an S-corporation, you will pay yourself a reasonable salary and, in turn, reduce your taxable income. One major advantage of an S-corp is the potential for tax savings. Like LLCs, S-Corps are subject to pass-through taxation. This can help you avoid the double taxation often associated with traditional C Corps. Shareholders can potentially benefit from the lower individual tax rates compared to corporate tax rates. Additionally, S Corps allow shareholders to receive both a salary and distributions of profits, potentially providing tax advantages by reducing the amount subject to self-employment taxes. In other words, you can be the employee of the company (collect a salary) and also a shareholder. S-corps have liability protection similar to other corporate structures. This separation between personal and business liabilities can provide peace of mind to shareholders. Furthermore, an S Corp structure can lend credibility to your business, potentially making it easier to attract investors, secure financing, and establish relationships with suppliers and customers. Downsides to S-Corps S-Corps have more specific requirements, however, including limitations on types of shares they can issue, and what types of entities can own them. Regulations constrain shareholders' ability to offset losses against other income, which might affect investors seeking to deduct losses from their overall income. S-corps also have a high level of administrative complexity. They must adhere to specific formalities, such as holding regular meetings, keeping detailed records, and complying with state-specific regulations. Failing to meet these requirements could risk the company's S Corp status and result in tax consequences. Furthermore, S Corps might have limitations on raising capital by issuing different classes of stocks, which could impact expansion and fundraising efforts. C-Corporation C-corporations offer owners the ability to raise an unlimited amount of capital by issuing stock, taking on investors, and public offerings. C Corps have no restrictions on the number or type of shareholders, making them suitable for larger businesses seeking significant investment. A C-corp offers complete separation from personal finances and provides several protections from federal taxes. However, because it provides the owners and shareholders with the greatest asset protection, the corporate structure comes with the heaviest tax and legal responsibilities. Another notable benefit is the ability to retain earnings within the company without immediate tax consequences. C-Corps can accumulate profits and reinvest them into the business, allowing for growth and development without triggering immediate tax liabilities for shareholders. Additionally, C-Corps can provide various employee benefits, such as healthcare plans and retirement accounts. C-Corps also offer limited liability protection, shielding shareholders' personal assets from the company's debts and legal liabilities. They can also continue to exist independently of changes in ownership, making them a stable and enduring choice for a legal structure for a business. Drawbacks of C-Corps However, there are also drawbacks associated with forming a C-Corp. One significant consideration is the potential for double taxation. C-Corps are subject to corporate income tax at the entity level, and any profits distributed to shareholders in the form of dividends are taxed again at the individual level. This can result in a higher overall tax burden compared to pass-through entities like S-Corps or partnerships. Additionally, C-Corps are also administratively complex, and face greater regulatory scrutiny than other business structures. They must comply with procedures such as holding regular shareholder meetings, maintaining detailed records, and adhering to specific reporting and disclosure obligations. Choosing the legal structure for a business is an essential task that can seem overwhelming. While there are many legal structures to choose from, it is critical to choose the one that best suits your needs by considering your business type, your funding, and your comfort level with personal liability. Remember, each type of legal structure has different pros and cons, making more research and understanding of the various factors necessary. Consulting with legal, financial, and tax professionals can help you make an informed decision that aligns with your business objectives while minimizing potential risks.

We were thrilled to get the opportunity last April to speak with John Jantsch about his new book "Building The Ultimate Marketing Engine", and what inspired the book. During our interview, he touched on several core ideas: Resilience in Tough Times: John highlights the importance of businesses being meaningful in the lives of their customers and employees during challenging times, as exemplified by the success of one of his clients, Charlie, whose remodeling business remained resilient because it maintained a strong connection with its customers and team. Marketing Principles Remain Unchanged: John also emphasizes that despite the rapid changes in the digital marketing landscape, the core principle of earning trust remains constant. Jantsch believes that businesses should continue to focus on providing value to customers rather than resorting to spammy marketing tactics. Customer Success Track: He introduced the concept of the "Customer Success Track," where businesses help customers evolve through various stages, adapting their approach to address evolving needs. This approach can be applied by any business to enhance its products, services, and sales messaging. Redefining the Customer Journey: Jantsch challenges the traditional customer journey funnel concept, suggesting that the real opportunity lies in creating an end-to-end customer experience that leads to repeat business and referrals. Every customer should ideally become an advocate for the business. Building Trust in Marketing: John emphasizes the importance of building trust in marketing by ensuring that businesses appear trustworthy to potential customers. This involves having a credible online presence, showcasing positive reviews and results, and making it easy for customers to provide feedback. Watch Our Interview What follows is a lightly edited transcript of our interview. Gary Stockton: John Jantsch is a marketing consultant, speaker, and author of “Duct Tape Marketing,” “The Referral Engine”, and “The Self-Reliant Entrepreneur.” He's also the founder of the Duct Tape Marketing Consultant Network, which trains and licenses independent consultants and agencies to use the Duct Tape methodology. He's a trusted small business marketing expert and authority who has just released a new book, “The Ultimate Marketing Engine – Five Steps to Ridiculously Consistent Growth.” So, for this small business matter on growth and marketing, we invited him to share his insights. John, welcome to the Small Business Matters podcast. John Jantsch: Thanks for having me, Gary. Gary Stockton: Your latest book opens with a text message from Charlie, one of your clients, asking for advice on an email he's about to send to his team of 50 employees and his customers in response to statewide shelter-in-place orders, informing them that all active projects will be put on hold. Many businesses would fail in the following year, but not this one. Why was Charlie's business so resilient? John Jantsch: That email went to his employees and clients. Many businesses sent a similar email. I saw the responses that came back from that email. Many said something like, "you’re doing the right thing. We're with you." One even offered to pay in advance for a kitchen remodel. Businesses thrive in tough times by being meaningful in the lives of their customers and their team. Those businesses that were close to their customers came through in shining fashion. Gary Stockton: He didn't have any projects canceled. It's remarkable and a testament to the business. How long has Charlie been in business? John Jantsch: Like many local businesses, Charlie is the second-generation owner of this remodeling business. His father started it around 1980. Gary Stockton: Stop spamming people and taking your customers for granted became common at the pandemic's onset. Do you think businesses have learned, or will things revert to pre-pandemic norms? John Jantsch: People will revert. The advice to "stop spamming" and "value your customers" was always good. Marketing's goal has always been to earn trust. While the digital landscape changes rapidly, that core principle remains. Gary Stockton: What was your biggest realization while writing this book? John Jantsch: I introduced the "Customer Success Track" based on my experiences. Our customers came to us at various stages. We fixed their challenges and moved them to the next stage. This approach can be adapted by any business. Viewing customers as evolving entities changes how you approach your business, products, services, and sales messaging. Gary Stockton: In the book, you challenge the typical customer journey funnel concept. Why? Most marketers focus on getting people to know the brand and then converting a small fraction into customers. The real opportunity is to create an excellent experience, leading to repeat business and referrals.John Jantsch John Jantsch: Most marketers focus on getting people to know the brand and then converting a small fraction into customers. The real opportunity is to create an excellent experience, leading to repeat business and referrals. People naturally make referrals, but for many businesses, it's accidental. The customer journey should be end-to-end, with every customer becoming an advocate. Gary Stockton: You talk about invoking trust in marketing and refining messages. Can you give examples? John Jantsch: The most practical way in many cases is realizing that with the changes in marketing, it changes the way people buy. Even if someone recommends a business, nowadays, I'll turn to a search engine first. I want to see their website, check if other people trust them, see if their content has appeared in familiar publications, and find out if they've gotten results for businesses like mine. We're all busy, so we first need to ensure a business is trustworthy before diving deeper. Gary Stockton: Making it easy for customers to give feedback is essential. Amazon has effectively integrated this into their workflow. Even my dentist offers incentives for check-ins on Yelp. It's all about getting people into that feedback loop, right? John Jantsch: You can't persuade someone to leave a positive review with incentives if their experience was negative. However, many businesses with happy customers fail to gather reviews simply because the process can be inconvenient. Making it easier for people to share their experiences can result in more positive feedback. Gary Stockton: I recently read the Edelman Trust Barometer and found that businesses are now the most trusted entities at 61%, ahead of NGOs, the government, and media. How should small businesses interpret this in terms of establishing trust? John Jantsch: Businesses ranking high in trust is a relatively recent trend. We've seen many small businesses suffer recently, which likely sparked empathy. As for employee trust, businesses are struggling to find and retain employees. It's essential to show the world your company's value, ensure a smooth onboarding process, and build trust throughout the employee's journey. The framework I use for the customer journey can also be applied to the employee journey. The key is to build a strong brand and ensure every step feels right for the individual. Gary Stockton: I'm an Apple customer and feel more like a member of a club. Is this the idea you reference when talking about customers as members? John Jantsch: While Apple is a well-known example, it's about a shift in perspective. Imagine if a customer felt they were joining your business rather than just purchasing from it. The idea is to consider the long-term transformation and relationship, rather than just a transaction. Gary Stockton: Joey Coleman's book discusses the importance of the onboarding experience. Can you elaborate on this? John Jantsch: Both customers and employees value the onboarding experience. Research shows that if you lose an employee, it's likely within the first 90 days due to a lackluster onboarding. A stellar start can solidify the relationship for years. Gary Stockton: Anything else you'd like to add? John Jantsch: We've discussed the customer journey, which I refer to as the marketing hourglass: Know, Like, Trust, Try, Buy, Repeat, and Refer. These stages represent behaviors we want to guide our customers through. Instead of worrying about being on every platform, focus on enhancing each stage of this journey. Gary Stockton: The book is the “Ultimate Marketing Engine – Five Steps to Ridiculously Consistent Growth.” John Jantsch, thank you for joining us. Where can our audience learn more? John Jantsch: The book's website is theultimatemarketingengine.com, where you'll find free chapters and a complimentary course. For more about my work over the decades, visit ducttapemarketing.com. Gary Stockton: Thank you so much, John.

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