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Tips For Small Business Owners from Mike Kappel

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Why Do Small Businesses Hire?

  
  
  

(By , Serial Entrepreneur)

My credentials for answering this question:

I have been in business for more than 25 years. I have started, and own, 5 successful small businesses. Four of them are employment-related businesses. I employ 60 full-time employees directly in my businesses, and I also employ over 300 contract staffing employees in over 40 states. With that said, I can confidently state that I know why small businesses hire, and why they don’t hire.

A Few Facts:

  • Watch the 4-minute video for the 3 threats facing small businesses in 2012.
  • In our free enterprise system, there are 27.9 million small businesses.
  • Almost half of the US workforce works for a small business.
  • The Small Business Administration (SBA) says 60-80% of new hiring comes from small businesses.
  • Small business is the backbone of our nation!

The USA workforce wants more jobs...

  • To have more jobs...
    • we need more small businesses.
  • To have more small businesses...
    • we need more entrepreneurs willing to take risks.
  • To have more entrepreneurs willing to take risks... We must do 5 things:
  1. reduce taxes on small businesses.
  2. reduce Obamacare costs, mandates, and penalties.
  3. reduce unnecessary government regulations.
  4. reduce our national debt, which scares small business owners!
  5. promote capitalism, free enterprise, and entrepreneurial values.
  • If we do these 5 things, entrepreneurs will evaluate the risks versus rewards of hiring. And they will...
  1. have more money and confidence to try things.
  2. create millions of new jobs!
  • And millions of new jobs means billions of new payroll-tax dollars that will...
  1. fund our government and pay down our debt.
  2. increase consumer confidence.
  3. increase small-business-owner confidence.
  • Which means even more new jobs... It’s that simple!

How can you make these 5 things happen?


Now it is your turn! Please comment with your stories, insights, and suggestions. We’d love to hear from you . . . And if you found this information useful, please tweet, like or share!

Comments

Hi Mike 
That was an excellent video. I hope 
and pray your video gets wide 
distribution before it is too late. 
Your friend 
 
Aurel Stan 
Posted @ Tuesday, October 09, 2012 4:19 PM by Aurel Stan
Mike - You did a great job summarizing the challenges facing small businesses and their employees today. Your message is not political propaganda - it's the cold hard facts. This hits close to home, since I too work in a small business, where these taxes and regulations will affect us all. Something has to change, and I hope the voters will think about this at election time. I will do my best to spread your message. Thanks for taking the initiative to do this.
Posted @ Wednesday, October 10, 2012 8:49 AM by John Sedlak
Taking your expert talking points, one by one:  
 
1) PRESIDENT Obama has cut small business taxes 18 times. 
 
2) For Small business, his plan provides credits to help provide healthcare to employees. 
 
3)Define "unnecessary" regulations. 
 
4)By repealing "Obamacare" the Republicans would cost $109 Billion (according to the bipartisan CBO: http://www.cbsnews.com/8301-503544_162-57479021-503544/cbo-health-care-repeal-would-cost-$109-billion/) 
 
5) President Obama has been promoting free enterprise,entrepreneurial values, and capitalism. After all, helping the Bankers, Wall St., etc--what could be MORE capitalistic? The President has signed NOT one, but THREE new free-trade agreements, ( http://www.cnn.com/2012/10/08/politics/fact-check-romney-trade/index.html),AND is trying to make it more costly to ship jobs overseas, in order to keep them IN AMERICA! How would THAT help small business HERE, at home?
Posted @ Wednesday, October 10, 2012 6:35 PM by Jo Losturo
I hold out little hope that you will print MY two comments, but here goes: The first two replies, that praise your article as, "not political propaganda", and being, "cold hard fact." Who are those from--your brother and best friend? They certainly sound like cheerleaders. Why would someone feel the need to point out that it's NOT political propaganda, when nobody accused this as being so? Maybe because in Right-wing, Bizarro World--we all know it IS, just that!
Posted @ Wednesday, October 10, 2012 6:43 PM by Jo Losturo
@Jo Lusturo. Thank you for participating in the discussion. We welcome your comments.
Posted @ Thursday, October 11, 2012 8:26 AM by Mike Kappel
Mike, I agree with you, you know that. Great job on the video. If President Obama has cut small business taxes 18 times, then we have not seen most of those cuts. We took advantage of the new hire retention credit from the HIRE Act, and received a ~$7,000 break in taxes - money that has been plowed right back into the business to continue it's growth. We are appreciative. But that credit is gone, and the $86,000 coming tax bill is an annual promise at this point. President Obama's tax initiatives are generally not helping the employers. When he says he is not raising taxes on 97% of small businesses, realize that this number is substantially made up of individuals who have VERY small businesses and do not employ anyone. A large number of small business "employers" are folks who make more than $250,000, and have to continue to reinvest most of those dollars back into the business to keep it going and growing. Thanks Mike for the timely information and thanks Jo for commenting.
Posted @ Friday, October 12, 2012 11:34 AM by Todd Schmitt
I am the CFO/Chief Accountant for a small business. It doesn't matter how low the tax rate is cut for small business, the only way a small business will increase hiring is if money is put in the hands of the middle class so they can buy my products. This is exactly what President Obama is trying to accomplish. I tire of hearing about the so called "job creators" in this economy. What this country needs is the bold leadership of President Obama to continue fighting for the middle class. To believe that the failed economic policies of the past will now somehow magically work is just wrong.
Posted @ Thursday, October 18, 2012 9:17 PM by Kathy Worth
Well said Jo Osturo. It seems like a scare tactic to get employees to vote republican. We are moving closer and closer to third-world wages. You may have a job but you won't be able to support a family.
Posted @ Friday, October 19, 2012 7:29 AM by Katherine Meharg
Obama has been one of the most pro business presidents that we have seen in decades. It would be nice if a Republicans like yourself would recognize that fact and try to present a more balanced point of view in your video....then again, who am I kidding? 
 
If you care to educate yourself beyond the FOX News talking points dujour, consider reading some of these facts: 
 
The president has also cut taxes 40 times, including 17 times for small businesses. 
 
He signed into law a plan for 100 per cent business expensing to help businesses grow, and a payroll tax holiday to help American families and the economy. 
 
He wants to reform the corporate tax code by eliminating loopholes, lowering the corporate tax rate and encouraging investment in the US. 
 
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/75f62250-4441-11e0-931d-00144feab49a.html#ixzz29n7cCT1P 
 
Exports have increased by 19 per cent since his call last year for a doubling of exports by 2014. Export control policies have also been strengthened and streamlined, both to protect our national security and advance US competitiveness. The US-Korea trade agreement, which we are moving through Congress, will also support billions of dollars in exports and tens of thousands of US jobs. 
 
Corporate profits hit $1.37 trillion in the first quarter—an all-time high. Businesses are sitting on about $2 trillion in cash reserves. Business spending jumped 20 percent last quarter, and is up by 13 percent against 2009.  
 
About "Obamacare" -- The bill in fact contains substantial benefits (some might even say giveaways) for small businesses. That starts with a program already under way to offer special subsidies to firms with fewer than 25 employees that want to offer health benefits. As long as your employees earn less than $50,000 on average (law firms, medical practices, and other elite professional partnership are thus ineligible), you can get a tax credit to defray 35 percent of the cost of the insurance if you’re a for-profit firm, and 25 percent if you’re a nonprofit. When the law really gets rolling in 2014, those subsidies rise to 50 percent for for-profits and 35 percent for nonprofits. 
 
Firms with fewer than 50 employees are also exempt from the “employer responsibility” provision of the law that otherwise constitutes the biggest business burden in the legislation. 
 
Put the special subsidies and the exemption together, and the result is a law that’s pretty clearly a good deal for small businesses. 
 
 
 
Not quite sure why I just bothered posting all this stuff anyway, I'm sure none of you are going to change your mind about a Muslim Kenyan Communist and will delete my post anyway.
Posted @ Friday, October 19, 2012 6:47 PM by Jim Joseph
Thank you for sharing some of the very real threats that are facing small businesses. I'm interested to know if Jo Losturo is an entrepreneur? We have definitely not experienced any business tax cuts in the past four years. We are being crushed under excessive regulation, unsustainable taxation levels and the burden of bureaucracy. Small Business owners need to unite to hold elected officials, at all levels, from both parties, accountable!
Posted @ Saturday, October 20, 2012 5:34 AM by Melissa Jacobs
Fantastic and accurate review! Great job in personalizing potential realty. Will certainly share with others!
Posted @ Monday, October 22, 2012 10:08 PM by Jodie Dyer
If you really cared about small business, American and our founding principles you would have included information about independents like Gary Johnson the only small business owner running for president.  
 
A vote for either party now is the same vote. They are all fascist greedy career politicians.  
 
Start working for small business and help education everyone on the principles of liberty.  
 
Vote for freedom, Vote Gary Johnson
Posted @ Tuesday, October 23, 2012 9:12 AM by Michael Sparks
Great Job Mike ! I think you are right on track. Sure hope we can get a lot of this junk repealed and get businesses creating more jobs again. 
 
 
 
Posted @ Monday, October 29, 2012 8:53 AM by Paul Schwarz
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