Starting a business is thrilling, but there’s a lot to figure out.
Do I need to relocate? How will I finance the operation? What kind of insurance will I need?
If you’re in the early stages you’ll need to research and study a lot. One of the biggest decisions is choosing which industry to get into.
A lot of business ideas excite you. You could do a bookkeeping business, start a cafe, or run a clothing store.
There’s a ton of options, but which one is right for you.
Three simple questions will help you narrow your options. Take your time answering and think deeply about them.
Make a list for each question. Then compare the lists. If one item overlaps in all three lists, it might just be the right business for you to start.
What are you good at?
Every person is a complex combination of genetics, upbringing, personality, skill set, and more.
In other words, you’re unique and bring something special to the table.
A lot of people don’t perceive their own strengths. They’re used to their skills and consider them everyday activities.
A gifted singer thinks everyone can hit notes and do scales. A handyman assumes everyone can fix things around the house.
The truth is a ton of people cannot do the things you do.
We don’t see our gifts because we compare ourselves with the best.
Teachers compare themselves to the best teacher they ever had and think, “I’m awful at teaching!”
Writers compare themselves to their favorite authors and think, “I stink at writing!”
Compare your abilities to the everyday person. If you put your gifts in perspective you might realize that you’re actually pretty good at something.
One way to discover your strengths is to ask those who know you best. You might be surprised by their answers.
Another way to find your strengths is to ask yourself what you enjoy doing. What do you spend your time on? Is there a hobby you like?
Remember, you’ll improve your skills with experience and education. The question right now is what are you good at compared to most people.
Once you answer this, you’ll start to see yourself going into certain industries.
What needs can you meet?
Fulfilling a need is one of the pillars of a successful business.
Think about your current surroundings. Are there certain needs that jump out at you?
Let’s say you live in a medium-income neighborhood with a lot of pet owners. There might be a huge need for pet-sitters.
Are there needs that you personally wish were met? Do you wish there was a vegan restaurant around? Do you wish you could hire someone to mow your lawn?
Try to recall past conversations with family, friends, and locals. Do they express needs you can meet?
Maybe they’re tired of bars and wish a brewery would open in town. Maybe they wish their favorite local business had a user-friendly website.
Once you start looking for needs, you’ll start to see them everywhere. Houses need cleaned. Students need tutored. Cars need repaired.
It might be easier to select a business if you find a need first, then find a way to answer that need. Rather than finding a skill, then trying to meet a need with it.
I recommend taking both paths to generate as many business ideas as possible.
What resources are available to you?
One giant factor that will help you choose a business is looking at the resources available to you.
What does your network of friends look like? What industries are they in?
Sometimes you don’t have to create a new business, you can join an existing one and expand it.
Or you can combine talents to create a business. If you have friends with certain skills sets, consider pairing up with them.
Let’s say you’re awesome at repairing cellphones and laptops, but you’re not good at sales. If your friend is good at sales, you could partner with them.
Also, consider your circumstances. If you’re a stay-at-home mother who’s homeschooling, you might want to try making money online.
If you have a great living space, consider starting an Airbnb. Or if you have an awesome car, think about doing Uber or Lyft.
Do you already have materials that can be used for a business? Perhaps you own property. Take some time to think about a business that would thrive on that real estate.
When you take the time to consider what’s at your fingertips, it helps narrow in on the right business for you.
Compare all three lists
Finally, compare your answers.
Is there something you’re good at, that can answer a need, and you have the resources for?
That’s the golden ticket.
That means you have the ability to perform, the potential to make money, and the means to accomplish the task.
What business do you think is right for you?
American Airlines Seeks $12B in Coronavirus Rescue Funding
American Airlines is seeking $12 billion in loans and grants from the U.S. government, and says it won’t furlough employees for the next six months during the coronavirus health crisis.
In a memo sent to employees from CEO Doug Parker and President Robert Isom, the U.S. carrier said it will seek the funding as part of the $50 billion pot set aside for airline industry bailouts that’s included with the $2.2 trillion economic relief bill passed by Congress and signed by President Donald Trump last week.
Parker and Isom said, with the government help, they’re confident American will “fly through even the worst of potential future scenarios.”
To receive the rescue funding, carriers must not furlough workers or cut their pay rates through Sept. 30. It allows for equity stakes for the federal government and requires carriers to maintain certain air routes.
American is the world’s largest airline by fleet size, passenger traffic and revenue passenger miles. It and other airlines are offering partially paid, voluntary leaves of absence to workers as traveler demand has evaporated due to the pandemic. Three out of every four Americans are presently subject to municipally ordered lockdowns.
Monday, American said it’s extending no-fee travel changes for flyers who bought fares through April 30.
Also Monday, low-cost carrier Spirit Airlines said it’s canceling all flights to and from New York, New Jersey and Connecticut after the Centers for Disease Control and Prevention warned against all non-essential travel in the region.
Spirit said it’s suspending service to New York City’s LaGuardia Airport, Newark, N.J., Hartford, Conn., and Plattsburgh, N.Y., through at least May 4.
Federal CARES Act Provides Relief to Businesses Hurt by COVID-19
The federal Coronavirus Aid, Relief and Economic Security Act passed by both Congress and signed into law by President Trump, also known as the CARES Act, offers major financial support for companies impacted by the coronavirus pandemic.
The most vital policy provisions for businesses affected by the coronavirus, according to the U.S. Chamber of Commerce, are:
- Slowing the payment of payroll taxes to allow businesses to have more cash to keep employees on their payrolls.
- Loans and grants for small businesses.
- Creating a bridge loan facility to allow businesses with significantly less or no available revenue to continue to pay employees.
The chamber has published an interactive map for businesses to learn how available aid under the Small Business Paycheck Protection Program can help small businesses in each state. The website lists the amount aid available in each state, the number of small businesses and small business employees. To access the interactive map, click here.
The National Retail Federation, meanwhile, has published a summary of the CARES Act’s key provisions.
- The “Paycheck Protection Program” provides $S250 billion to support loans for employers with less than 500 employees.
- The “Loan Program and Credit Facility” provides $500 billion in both direct and indirect lending in Federal Reserve credit.
- The “Unemployment Insurance Provision” provides assistance for unemployed workers, including those who have exhausted regular state and feral unemployment compensation in addition to short-term compensation programs.
- The “Business Tax Provisions” includes tax provisions for retailers to offset the cost of retaining employees during the economic downturn.
For the full National Retail Federation summary, click here.
“Securing these funds could make the difference between keeping a business up and running over the coming weeks or being forced to reduce salaries, lay off employees, or shutter businesses entirely,” Thomas Donohue, U.S. Chamber of Commerce CEO, said in a press release.
For the latest updates on how the coronavirus is affecting the kiosk industry, click here.
IRS, Treasury Department and Department of Labor Give Guidance on Small Business Leave and Tax Credit
The U.S. Treasury Department, Internal Revenue Service (IRS) and the U.S. Department of Labor (Labor) have announced that small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees.
This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (Act), signed by President Trump on March 18, 2020.
The Act will help the United States combat and defeat COVID-19 by giving all American businesses with fewer than 500 employees funds to provide employees with paid leave, either for the employee’s own health needs or to care for family members.
The legislation will enable employers to keep their workers on their payrolls, while at the same time ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus.
* Paid Sick Leave for Workers
* For COVID-19 related reasons, employees receive up to 80 hours of paid sick leave and expanded paid child care leave when employees’ children’s schools are closed or child care providers are unavailable.
* Complete Coverage
* Employers receive 100% reimbursement for paid leave pursuant to the Act.
* Health insurance costs are also included in the credit.
* Employers face no payroll tax liability.
* Self-employed individuals receive an equivalent credit.
* Fast Funds
* Reimbursement will be quick and easy to obtain.
* An immediate dollar-for-dollar tax offset against payroll taxes will be provided
* Where a refund is owed, the IRS will send the refund as quickly as possible.
* Small Business Protection
* Employers with fewer than 50 employees are eligible for an exemption from the requirements to provide leave to care for a child whose school is closed, or child care is unavailable in cases where the viability of the business is threatened.
* Easing Compliance
* Requirements subject to 30-day non-enforcement period for good faith compliance efforts.
To take immediate advantage of the paid leave credits, businesses can retain and access funds that they would otherwise pay to the IRS in payroll taxes. If those amounts are not sufficient to cover the cost of paid leave, employers can seek an expedited advance from the IRS by submitting a streamlined claim form that will be released next week.
The Act provided paid sick leave and expanded family and medical leave for COVID-19 related reasons and created the refundable paid sick leave credit and the paid child care leave credit for eligible employers. Eligible employers are businesses and tax-exempt organizations with fewer than 500 employees that are required to provide emergency paid sick leave and emergency paid family and medical leave under the Act. Eligible employers will be able to claim these credits based on qualifying leave they provide between the effective date and December 31, 2020. Equivalent credits are available to self-employed individuals based on similar circumstances.
The Act provides that employees of eligible employers can receive two weeks (up to 80 hours) of paid sick leave at 100% of the employee’s pay where the employee is unable to work because the employee is quarantined, and/or experiencing COVID-19 symptoms, and seeking a medical diagnosis. An employee who is unable to work because of a need to care for an individual subject to quarantine, to care for a child whose school is closed or child care provider is unavailable for reasons related to COVID-19, and/or the employee is experiencing substantially similar conditions as specified by the U.S. Department of Health and Human Services can receive two weeks (up to 80 hours) of paid sick leave at 2/3 the employee’s pay. An employee who is unable to work due to a need to care for a child whose school is closed, or child care provider is unavailable for reasons related to COVID-19, may in some instances receive up to an additional ten weeks of expanded paid family and medical leave at 2/3 the employee’s pay.
Paid Sick Leave Credit
For an employee who is unable to work because of Coronavirus quarantine or self-quarantine or has Coronavirus symptoms and is seeking a medical diagnosis, eligible employers may receive a refundable sick leave credit for sick leave at the employee’s regular rate of pay, up to $511 per day and $5,110 in the aggregate, for a total of 10 days. For an employee who is caring for someone with Coronavirus, or is caring for a child because the child’s school or child care facility is closed, or the child care provider is unavailable due to the Coronavirus, eligible employers may claim a credit for two-thirds of the employee’s regular rate of pay, up to $200 per day and $2,000 in the aggregate, for up to 10 days. Eligible employers are entitled to an additional tax credit determined based on costs to maintain health insurance coverage for the eligible employee during the leave period.
Child Care Leave Credit
In addition to the sick leave credit, for an employee who is unable to work because of a need to care for a child whose school or child care facility is closed or whose child care provider is unavailable due to the Coronavirus, eligible employers may receive a refundable child care leave credit. This credit is equal to two-thirds of the employee’s regular pay, capped at $200 per day or $10,000 in the aggregate. Up to 10 weeks of qualifying leave can be counted towards the child care leave credit. Eligible employers are entitled to an additional tax credit determined based on costs to maintain health insurance coverage for the eligible employee during the leave period.
Prompt Payment for the Cost of Providing Leave
When employers pay their employees, they are required to withhold from their employees’ paychecks federal income taxes and the employees’ share of Social Security and Medicare taxes. The employers then are required to deposit these federal taxes, along with their share of Social Security and Medicare taxes, with the IRS and file quarterly payroll tax returns (Form 941 series) with the IRS.
Under guidance that will be released next week, eligible employers who pay qualifying sick or child care leave will be able to retain an amount of the payroll taxes equal to the amount of qualifying sick and child care leave that they paid, rather than deposit them with the IRS.
The payroll taxes that are available for retention include withheld federal income taxes, the employee share of Social Security and Medicare taxes, and the employer share of Social Security and Medicare taxes with respect to all employees.
If there are not sufficient payroll taxes to cover the cost of qualified sick and child care leave paid, employers will be able file a request for an accelerated payment from the IRS. The IRS expects to process these requests in two weeks or less. The details of this new, expedited procedure will be announced next week.
If an eligible employer paid $5,000 in sick leave and is otherwise required to deposit $8,000 in payroll taxes, including taxes withheld from all its employees, the employer could use up to $5,000 of the $8,000 of taxes it was going to deposit for making qualified leave payments. The employer would only be required under the law to deposit the remaining $3,000 on its next regular deposit date.
If an eligible employer paid $10,000 in sick leave and was required to deposit $8,000 in taxes, the employer could use the entire $8,000 of taxes in order to make qualified leave payments and file a request for an accelerated credit for the remaining $2,000.
Equivalent child care leave and sick leave credit amounts are available to self-employed individuals under similar circumstances. These credits will be claimed on their income tax return and will reduce estimated tax payments.
Small Business Exemption
Small businesses with fewer than 50 employees will be eligible for an exemption from the leave requirements relating to school closings or child care unavailability where the requirements would jeopardize the ability of the business to continue. The exemption will be available on the basis of simple and clear criteria that make it available in circumstances involving jeopardy to the viability of an employer’s business as a going concern. Labor will provide emergency guidance and rulemaking to clearly articulate this standard.
Labor will be issuing a temporary non-enforcement policy that provides a period of time for employers to come into compliance with the Act. Under this policy, Labor will not bring an enforcement action against any employer for violations of the Act so long as the employer has acted reasonably and in good faith to comply with the Act. Labor will instead focus on compliance assistance during the 30-day period.
For More Information
For more information about these credits and other relief, visit Coronavirus Tax Relief on IRS.gov. Information regarding the process to receive an advance payment of the credit will be posted next week.
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