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October 21, 2020

Gusto VS ADP: Which Payroll Software Is Better?

	Gusto	ADP
Features	Excellent	Excellent
Pricing Start Point	Good	Fair
Ease of Use	Excellent	Excellent
Customer Support	Excellent	Excellent
Reviews & Complaints	Excellent	Good
Integrations	Good	Good
Hardware & Software Requirements	Fair	Excellent
Security	Excellent	Good
Best For	Small to midsize businesses	Large and growing businesses
	Start Trial Read Review	Visit Site Read Review

Payroll software can cut down on errors and reduce time spent calculating paychecks, handling tax withholdings, and getting employees paid on time. But with so many options, it can be challenging and time-consuming to find software that best fits the needs and budget of your small business.

To help take out the guesswork and narrow down your search, we will compare two leading payroll software apps available to small businesses: Gusto and Run by ADP. For each, we will evaluate several criteria, including features, pricing, user-friendliness, customer support, and candid feedback from small businesses.

Read on for our side-by-side comparison and decide which software is best suited to your business.

Gusto VS ADP Overview

There is no one-size-fits-all solution to payroll. In assessing Gusto vs. ADP, we aim to highlight how and when businesses might benefit from each software. Notably, there are some key differences in features and pricing to be aware of when comparing Gusto vs. ADP.

Before diving into the details of how Gusto vs. ADP stack up head-to-head, letâs begin with an overview of each, including pros and cons.

Gusto

Formerly known as ZenPayroll, Gusto has been in the payroll software industry since 2012. The cloud-based payroll platform has a reputation for its straightforward interface and the ease with which it automatically calculates payroll and tax filings. Gusto supports flexible payment schedules too, which comes in handy whether following a standard bi-weekly plan or periodically doling out bonuses and commissions.

Gusto is effective at integrating other aspects of business too, such as HR, employee onboarding, and benefits administration. Through the employee portal, workers can log hours and keep track of PTO with any of Gustoâs three plans. Additionally, Gusto can sync up with third-party applications, such as the popular accounting program QuickBooks.

Gusto has the essential nuts and bolts of payroll covered, but its provision of extra features isnât extensive across any of its three plans: Core, Complete, and Concierge. Conversely, this actually makes Gusto a budget-friendly option, even with some extra add-ons like health insurance and 401(k) plan support. Between pricing and features, Gusto is a fit for many small and midsize businesses looking for a practical platform to take care of payroll.

Pros

Transparent pricing for tiered plans
Integrated time tracking and HR
Intuitive user interface
Prepares year-end tax forms
Unlimited payroll runs (for businesses with <100 employees)

Cons

Limited time tracking
Less reporting than ADP
Health insurance offered in only 38 states and D.C.

ADP

Automatic Data Processing, Inc. (ADP for short), is a leader in workplace management for companies around the world. ADP has been helping businesses run payroll since the 1940s (beginning with an ice cream parlor before acquiring 12% of the payroll market today). The global firm helps deliver payroll and HR solutions to small businesses and major corporations alike.

For that reason, ADP offers multiple plans catering to diverse business needs. ADP Run, which is structured for companies with 1-49 employees, is the most suitable ADP package for small businesses. ADP Run has four tiers: the Essential Plan, the Enhanced Plan, the Complete Plan, and the HR Pro Plan.

Across all four plans, ADP Run handles core payroll functions, including payroll processing, direct deposit, tax filing, and new hire reporting. Each plan also comes with useful HR applications, namely PTO tracking and approvals, time tracking, and assistance with workers’ compensation, retirement, and health care. An employee portal (My ADP) connects workers with these HR functions, while also giving access to their pay stub and tax information.

As a major global firm, ADP has made a name for itself on customer support on top of its cutting-edge technology. Though reviews tout how intuitive the platform is, ADP staff are on hand 24/7 for phone and live chat support. Customer service also includes user tutorials and getting started with the software.

Pros

A total of four plans helps with customization
Strong payroll and employee management features
Payroll and HR reports can be exported to Microsoft Excel
24/7 customer service compared to Gustoâs Monday-Friday coverage

Cons

Pricing is not disclosed online
Additional features come with added fees
Charges per payroll run, whereas Gusto offers unlimited

Both Gusto and ADP possess an array of features to take care of payroll, as well as employee and HR management. They also pack many of the same features, including full-service payroll, tax filing, direct deposit, time tracking, new hire reporting, generating reports, and employee management. There are two distinctions in features that stand out. First, ADP offers health insurance in every state, whereas Gustoâs coverage is limited to 38 states and D.C.. Second, Gusto supports free unlimited pay runs, while ADP charges extra for frequency of payment.Â

Features

Features	Gusto	ADP
Payroll Processing	â	â
Tax Filing	â	â
Direct Deposit	â	â
Unlimited Pay Runs	â
Time Tracking	â	â
Benefits Administration	â	â
New Hire Reporting	â	â
Reports	11	50+
Employee Management	â	â
	Start Trial Read Review	Visit Site Read Review

Although both software programs tout many of the same features, some tools and components differ considerably in scope and practice. To help make sense of it all, weâll compare Gusto vs. ADP on a number of important payroll features for small businesses.

Payroll Processing

Getting payroll taken care of in less time and without errors are major reasons why small businesses utilize payroll software. Therefore, itâs worth examining how Gusto and ADP help achieve these ends.Â

Across all their plans, Gusto and ADP offer full-service payroll for W2 and 1099 employees in all 50 states. For small businesses with tipped workers, Gusto can automatically adjust wages to claim the tip credit and abide by FLSA minimum wage requirements. Gusto can also handle garnishments and multiple pay rates and schedules, which can come in handy if employees earn commission or bounce between multiple roles (host and server at a restaurant, for example). ADP Run only offers garnishment for its three heftier plans (Enhanced, Complete, HR Pro).

Small businesses can choose to automate payroll with either software. ADPâs payroll services are accessible from its mobile app too.Â

Payment Methods

Both Gusto and ADP Run allow small businesses to use direct deposit and cash cards to pay their employees across all plans. With Gusto, the Core, Complete, and Concierge plans allow users to run payroll just two days before employees need to be paid. The most notable difference in payment methods between the two is that Gusto supports in-house printing of paychecks, whereas ADP Run can only mail checks through the Enhanced, Complete, and HR Pro plans.Â

Reports

On paper, both Gusto and ADP deliver payroll reports with any plan. However, ADP reporting features go incredibly in-depth. ADP Run users can access dozens of reports related to payroll, taxes, benefits, and HR. Some examples include employee time card comparisons, earnings by department, tax withholdings, and PTO per employee. On the flipside, Gusto supports just 11 reports. Although it is considerably less extensive, users can still view and export reports related to payroll summary, taxes, benefits, and employees too.Â

HR Support

In addition to paying employees and calculating tax withholdings, payroll software can bring HR support to small businesses too. Only Gustoâs priciest Concierge plan comes with HR compliance help, policy guides, and templates. Meanwhile, ADP Run has HR features available with all four plans. The essential plan gives access to an HR newsletter and checkups. Upgrading to more advanced plans can bring additional HR perks, including poster compliance assistance, background checks, ZipRecruiter subscription, legal assistance, and employee training.Â

Pricing

Gusto

Gustoâs straightforward pricing lets small businesses make easy cost comparisons and determine how a prospective plan would fit within their budget. The monthly cost per plan is characterized by a base rate plus a flat fee added for every person in a customerâs payroll.

Basic: $19/month + $6/month per person (employee or subcontractor)
Core: $39/month + $6/month per person
Complete: $39/month + $12/month per person
Concierge: $149/month + $12/month per person

Extra Services

There are extra costs for adding on benefits administration services and other features to complement Gustoâs payroll software. For instance, customers can tack on health benefits, 401k retirement plans, workersâ compensation insurance, 529 college savings plan, and tax-advantaged spending accounts

ADP

As previously mentioned, ADP does not have set pricing for each of its plans. Instead, interested customers receive a quote based on their business, desired features, and number of employees. On ADPâs website, getting pricing for any of the ADP Run plans requires entering your businessâs name, zip code, number of employees, and a contact email.Â

Research by the team at Merchant Maverick reports that there is generally a $20-$50 per month increase in pricing between each tier of ADP Run. Although pricing does not give ADP a competitive edge, an offer for three free months of ADP Run upon sign-up could lower the cost barrier to give it a test run.Â

Ease Of Use

Finding payroll software that fits your budget and needs is an important first step to narrowing down your options. Being able to quickly learn how to navigate the platformâs interface is another critical factor in selecting payroll software.

Gusto and ADP are both well-organized and intuitive on the user end. For Gusto, the employer and employee portals have dashboards containing the main payroll information, while sidebars provide quick access to its features. On the other hand, business owners can easily find ADPâs payroll and HR features from the home page or employer portal dashboard.

In the case of ADP, customers may work with a company representative to work through the payroll set-up process. This support also comes with tutorials to guide customers through utilizing ADP Runâs various features. Meanwhile, Gusto users will need to take a more DIY approach to setting up payroll. Step-by-step instructions and customer support can take most of the guesswork out of it. Once the payroll information has been inputted, Gustoâs AutoPilot can take care of payroll moving forward or employers can manually run payroll as they see fit.

Employee Portal

Employees can access payroll and HR resources and information with either software. After logging into Gustoâs employee portal, workers can look into pay stubs, time off, benefits, and upcoming payday with just a few clicks. ADPâs portal and mobile app â MyADP â help employees get to their pay stub, tax information, and HR features, such as making PTO requests or updating personal information.

Customer Service & Support

Gustoâs quality customer support is one of its main selling points. Once youâre a Gusto customer, you can reach support staff by phone, email, live chat, and social media during business hours from Monday through Friday. If youâre in need of assistance outside these hours, youâre still in luck. Gustoâs Help Center, Resource Center, and Ask Gusto how-to articles are loaded with useful tips and information. Although all four Gusto plans have access to customer support, the Concierge plan delivers the extra perk of a dedicated customer service team to help with HR and compliance.

Over the past six decades, ADP has built its reputation on attentive and quality customer service and support. ADP customers can reach a company representative 24/7 by phone and live chat. Community forums, email, and social media are other options for advice and help too. Visual learners will appreciate the fact that ADP has its own YouTube channel with tutorials and resources to help customers make the most of their payroll processing and HR management features.

Reviews & Complaints

Small business owners undoubtedly know their needs better than anyone else, but tapping into the knowledge and experiences of other small businesses can be informative when it comes to payroll software.

When it comes to Gusto, most small business customers are pleased with the softwareâs features (especially tax support, reminders when itâs time to submit payroll, and customer service. Generally speaking, reviews have also praised the softwareâs intuitive nature, transparent pricing, and its ability to save business owners time and energy. On the flip side, some customers have complained about limited reporting and analytics. In some cases, customers have expressed the wish that Gusto covered international employees and contractors too.

As a veteran provider, ADP Run has worked out many bugs and internalized customer feedback over the years. This experience has been praised in some customer reviews. Users also appreciate the round-the-clock support, multitude of features, and easy-to-use interface. Conversely, customer complaints have touched on hidden fees and undisclosed pricing for its various plans. Some customers have voiced frustration with having to request a demo from a sales representative to get a sense of the softwareâs interface.

Integrations

There are many aspects to running a small business beyond payroll and HR, including accounting, project management, recruiting employees, and sales. Some small businesses may even utilize other software or applications for these needs. Gusto and ADP both recognize this reality and have chosen to offer a host of integrations.

Both Gusto and ADP offer plentiful integrations, including accounting programs, QuickBooks, and Xero. ADP also supports dozens of time and attendance software, including ClockShark, Deputy, Homebase, and TSheets. Although the company doesn’t disclose every available integration on their website, ADP is known for working to customize integrations when needed.

If small businesses donât find Gustoâs time tracking features up to par, they can also integrate with a more robust app time tracking app like TSheets. If you have in-house developers, Gusto offers API to support any further integration needs.

The Key Differences Between Gusto & ADP

Between features, pricing, ease of use, customer support, reviews and complaints, and integrations, there is a lot to consider when choosing between Gusto and ADP. If youâre still undecided, letâs examine how these payroll software applications differ through the lens of a small business:

Pricing Structure: Gustoâs pricing is upfront and transparent. The cost will incrementally go up with the number of employees, and some optional add-on features can be included for a fee. On the contrary, ADP does not advertise pricing for any of its plans. Interested customers must obtain a quote and negotiate a deal, which could put smaller employers at a disadvantage.
Payroll Scheduling: Gusto grants the flexibility to pay employees on multiple pay schedules without charging extra. ADP charges per payroll, so paying employees on a weekly basis or processing contractor invoices would rack up extra expenses.
Reporting: Gustoâs 11 reports can inform users on some payroll basics, but ADP offers a wider and more in-depth selection of reports for small businesses. ADP lets users analyze employee data, including overtime and performance, as well as create custom reports.
HR Support: Only Gustoâs Concierge plan includes HR features. ADP Run has significant HR capabilities, such as an HR toolkit and dedicated HR advisers, in its more robust Complete and HR Pro plans. These resources could be advantageous for small businesses without a dedicated HR person.

Which Is Best For My Business Needs: ADP Or Gusto?

There isnât a single model for success when it comes to processing payroll. Many small businesses are satisfied with how ADP and Gusto have enhanced their operations. Letâs consider some scenarios when each software could be a better solution for small business needs.

Choose Gusto If…

You run a small or startup businesses
You value streamlined payroll, HR, and benefits management over sophisticated analytics and reporting.
You need flexible payroll runs for contractors, tipped workers, or employees earning bonuses or commission.

Choose ADP Ifâ¦

You have a mid-size or rapidly expanding businesses.
You want to integrate payroll with other apps and software.
You require more extensive HR features to recruit applicants and perform background checks.

Gusto VS ADP Comparison: The Final Verdict

Gustoâs success in the payroll realm can be attributed to its transparent, budget-friendly pricing structure and easy-to-manage interface. The softwareâs leading features â automated payroll processing, direct deposits, tax filing, and PTO management â are available across all four plans. Benefit options, such as medical, vision, dental, 401(k), and tax-advantaged savings accounts are affordable add-on features if desired. For these reasons, small and startup businesses stand to benefit from the straightforward features, pricing, and integration with other software and applications.

Across all four plans, ADP Run is more comprehensive in its features and customization. Beyond its full-service payroll processing, ADPâs most prominent features are its extensive reporting and analytics, HR support, and time tracking. Additionally, 24/7 customer service can give small businesses peace of mind, especially if working outside standard 9-5 business hours. Since ADP doesnât disclose pricing, the time demand and uncertainty of negotiating a price (plus hidden fees) may not be right for smaller businesses. Instead, mid-size businesses with greater HR needs and plans to grow may better afford and appreciate ADP Runâs added features

The post Gusto VS ADP: Which Payroll Software Is Better? appeared first on Merchant Maverick.

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September 30, 2020

Another Round Of PPP? What We Know Right Now About Another Government Stimulus For Small Businesses

Here at Merchant Maverick, we’ve covered PPP news for small business owners from day one. But by this point, we’re starting to sound like a broken record: The Paycheck Protection Program (PPP), meant to be a savior for America’s small businesses struggling financially due to COVID-19, has been a fairly unmitigated disaster.

Between the slow application process, the indefensible dolling out of funds to major organizations like burger chain Shake Shack and the NBA’s Los Angeles Lakers, and the outright lack of cash, the US government has been unable to properly support the nation’s small businesses with the PPP. (Even the father of Treasury Secretary Steven Mnuchin wasn’t impressed with his son’s performance.) More recently, Politico reported that not a single small business has yet received forgiveness on its PPP loan — even though the SBA opened the forgiveness portal for banks on August 10.

Despite the incompetency surrounding the PPP, more government funding for small businesses is direly needed as COVID’s economic damage continues to cripple numerous industries. According to an August survey by the NFIB, 47% of PPP loan borrowers anticipate needing more financial support over the next year. The restaurant industry has been particularly affected — for instance, results from a survey released this month by the New York State Restaurant Association found that 63.6% of restaurateurs in the Empire State fear closure over the next four months without additional financial relief.

While prospects may be lukewarm, hopeful murmurs about another round of PPP funding have been swirling around the past few weeks. Let’s take a look at what the government has been doing (and what it hasn’t) regarding a much-needed second stimulus package.

What We Know About The Next Round Of PPP

The PPP closed shop on August 8 with $138 billion left in funding. Since then, stimulus plans have sat deadlocked in Congress.

After the program was extended once, additional suggestions to lengthen the PPP went nowhere before the program fizzled out in August. Other talks also went nowhere.

In May, House Democrats offered up a 3.4 trillion general stimulus plan that roughly matched earlier government aid packages. However, Senate Republicans countered with a $1.1 trillion package towards the end of July. A “skinny” version of the GOP’s bill trimmed that number down to $300 billion, but Senate Democrats blocked that from advancing earlier this month.

By September 10, Republicans signaled a reluctance to negotiate with Democrats by expressing pessimism that COVID relief talks are “dead” until after Election Day. In a Twitter post one week later, President Trump called for Republicans to “go for the much higher numbers.”

“I like the larger amount, Iâve said that,” Trump added at a White House press briefing on September 16. “Some of the Republicans disagree, but I think I can convince them to go along with that because I like the larger number. I want to see people get money.”

The White House later affirmed that a $1.5 trillion package could be the sweet spot in negotiations.

Despite the difficulty facing potential negotiations, the Democrats have forged on with trying to pass a stimulus package. Most recently, party leaders unveiled on Monday a $2.2 trillion proposal dubbed the HEROES Act.

“Democrats are making good on our promise to compromise with this updated bill, which is necessary to address the immediate health and economic crisis facing America’s working families right now,” House Speaker Nancy Pelosi, D-Calif., wrote in a letter to House Democrats. “We have been able to make critical additions and reduce the cost of the bill by shortening the time covered for now.”

Besides helping out Americans with another slate of $1,200 stimulus checks and additional unemployment benefits, the HEROES Act also aims to lend small businesses a hand. Potential aid for businesses includes:

The PPP would be reopened, allowing small businesses to tap into an additional round of funding.
$120 billion in grants would be made available for restaurants, bars, and food trucks.
$436 million for states and local governments, some of which could spill over to local businesses.

At the time of writing, it remains unclear how the GOP will respond to the Democrat’s latest PPP offering. However, the $2.2 trillion price tag may be closer to a number more palatable to Republican legislators.

Government Alternatives To The PPP

A couple of small business aid alternatives to a more traditional stimulus package have cropped up recently. Unfortunately, these plans appear to have low prospects too.

During a House hearing last week, Financial Services Committee chair Maxime Waters, D-Calif., pressed the Federal Reserve to open its Main Street Lending Program to smaller businesses. This program, which has been largely ignored by the general public, is currently only open to businesses needing between $250,000 and $2 million.

While the Treasury’s Mnuchin said he was open to the prospect of lowering the bar to businesses in need of $100,000, Fed chair Jerome Powell shot the possibility down.

“Thereâs very little demand in the facility [for loans] below $1 million,” Powell said. He added: “Trying to underwrite the credit of hundreds of thousands of very small businesses would be very difficult. I think PPP is a better way to approach that space in the market and I think you are well advised to do that.”

This week, the Washington Business Journal reported on a separate proposal spearheaded by Rep. Jaime Herrera Beutler, R-Wash. This proposal, which has been floated as a “discharge petition”, would allow the House to bypass Congress’ deadlocked stimulus talks. Should this piece of legislation pass, small businesses hit with “steep revenue losses” due to COVID could tap into the $138 billion left of PPP funds.

However, discharge petitions rarely pass (the Washington Business Journal noted just two passed petitions, one from 2015 and another in 2002). As such, Beutler’s proposal seems unlikely to go anywhere — it requires at least 218 votes to pass, so support from both sides of the aisle is needed.

How To Stay Up-To-Date On PPP News

Staying current on the latest PPP news can be a daunting and all-consuming task. To help out business owners across the country, Merchant Maverick is keeping our ear to the ground for any PPP rumblings.

Following Merchant Maverick on Facebook or Twitter is a good place to start because we’ll be sharing any of our future PPP-related articles across social media. You can also check out our COVID-19 hub — we’ll also be posting any need-to-know government stimulus stories there.

Do you have a story idea, tip, or press release for the Merchant Maverick news team? Shoot us an email: [email protected]

The post Another Round Of PPP? What We Know Right Now About Another Government Stimulus For Small Businesses appeared first on Merchant Maverick.

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August 28, 2020

How to Choose the Best Free Website Builder for Your Website

This post originally appeared at How to Choose the Best Free Website Builder for Your Website via ShivarWeb

Thanks to free website builders, creating a webpage has become something that almost anyone can do. Because there are so many options out there when it comes to finding a website builder, though, it can be challenging to know which one is the best choice for your future website.

Because different websites need different things, there is no “one size” fits all for website builders. Different products offer various features, especially when working on their free plans. Since the free option of a service can have limitations, you want to make an informed decision before starting work on your site.

Summary – Best Free Website Builder Options

Based on my experience working with many website builders, there are a few that are a good fit for most people. They all have free plans available with a variety of limits.

Google Product
Easy Setup
Focus on Simplicity
Quick Site Appeal

Google Sites

View Plans

Built-in Features
Drag + Drop Design
Focus on Usability
Growing Site Appeal

Wix

View Plans

Lots of Options
Future-proofing
Focus on Versatility
Content Site Appeal

WordPress

View Plans

Focused on other free options?

MailChimp is email & digital marketing software with a bundled website builder that’s free up to 2,000 contacts (see review). View plans.

And Weebly has the best ecommerce options with their free plans (see review). View Plans.

To help you learn how to choose the best free website builder, we’ve gathered together the factors you should consider when comparing your options.

Primary Considerations

With so many free website builders out there, it’s not so surprising that some are of better quality than others. No matter what you plan to do with your site, here are some things that you’ll want to look for in your options.

Some free website builders keep themselves operating through the income of paid membership users. However, a much more common approach is for them to place ads on free plan users’ sites.

That said, these advertisements come in many forms. Some are obtrusive and distract visitors from your content, while others are much more subtle. The less space a required ad takes up on your webpage, the better it will be for you.

Domain Name

The domain name is the part of the URL that indicates your website. Having a custom domain name makes it easier for potential visitors to navigate to your webpage—which is essential if you want to attract business and hits.

Many free website builders will give you a customizable section that is part of your larger domain name—take yoursite.wix.com, for example. This structure is most common and is simple enough that it won’t get in the way of visitors remembering your site.

On the flip side, some free website builders have complicated domain names that aren’t very user friendly. While rare, some products will allow you a wholly unique domain for free, though you will still need to pay to obtain your custom domain.

Upgrade Cost

For some people, a free plan will be all they ever need. Much more likely, though, is that an upgrade will be necessary for the future. Though you may not be starting with a paid plan, it’s good to consider the cost of upgrading—and the features that are available for the price.

With this bit of groundwork, you can save yourself the hassle of moving your site to another builder if you don’t like the upgrade options.

Security (SSL Certificate)

Cybersecurity is essential, and an SSL certificate is a part of what keeps your website safe. Unfortunately, not all free website builders have this feature as a part of their free plan.

Without an SSL certificate, your website may be left open to attacks that can impact you and your visitors. While you don’t want to go without one generally, you should always have an SSL certificate if you plan to conduct ecommerce on your site.

Storage and Size

The amount of storage on your website will ultimately impact how large your site can be. In particular, sites that plan to host a lot of videos or photos will need high amounts of storage space.

You should also consider how many pages your site needs, as some free plans put limits on this capability. If you only need a one-page website (and there are some excellent options explicitly geared towards this out there), it won’t be an issue. If you want a large site with multiple pages, check these limitations before you commit.

Bandwidth

Similarly, bandwidth refers to how much data your site can transmit over a given amount of time. In the context of a free website builder, you don’t want this number to be too low. If it is, it can potentially impact the amount of traffic that your site can handle, impacting your visitor’s experience.

Mobile Responsiveness

Computers are not the only way that we access the internet anymore—a majority of activity comes from mobile phones, tablets, and other devices. For your webpage to operate well between these different devices, it will need to have a responsive design—and this capability shouldn’t be optional.

Confirm that your website builder of choice allows for the creation of a mobile responsive page before committing. If not, you’ll be better off with another product.

Ease of Use

Even if a free website builder has a lot of promising back end features, it’s still critical to pay attention to what it’s like to use.

The entire point of using one of these platforms is that you don’t have to build a website from scratch, so you want the process of creating your desired site to be simple.

Many free website builders will use a drag and drop approach, making it easy to put everything in its place—though some are more beginner-friendly than others.

If nothing else, one of the benefits of a free plan is that you don’t need to pay any money upfront, so you can try different options to see which one is the most intuitive for you to use.

Customization Level

When considering design aspects, you will want your website to have enough creative freedom to stand out online. One area to pay close attention to when looking at website builders is to see how many templates you have access to on the free plan.

Some will let you access the complete library, while others will only give you a partial selection. Also, check the available designs. An outdated looking template can reduce the traffic that comes to your site and stays there.

While you can customize a lot with website builders, there are some restrictions. Some platforms will allow you to have higher levels of customization, though you’ll need some coding knowledge to pull it off. Consider what skills you’re willing to learn before you make your final selection.

Features

Some free website builders are flexible, while other brands have specialized in providing for a specific audience. If you’re planning to set up a blog, for example, you want to ensure that the website builder you choose can set up a blog.

Ecommerce (Optional)

Ecommerce functionality will allow you to accept payments through your site and to set up an online store.

In comparison to a paid plan, though, ecommerce features will generally be on the limited side with a free option. That doesn’t mean you can’t find some good options out there, just that they’re hard to come by.

If you don’t plan to build an ecommerce-capable website, you don’t need to worry about these features.

However, if this is your focus, starting out searching for worthwhile free ecommerce plans will save you a lot of hassle and significantly narrow down your options.

Support

In case you run into a technical issue, you’ll want to have support to help. Some website builders will have libraries of videos and articles on how to work the platform, while others will provide live support.

Note that if a website builder is popular, you may be able to find help from the community as well.

Secondary Considerations

While we’ve covered the basics of what to look for in free website builders, you’ll also want to make specific decisions depending on the type of site you plan to use. It’s always best to understand what tools and features you’ll need, then narrow your search down to the website builders that offer those features on their free plans.

For Photographers & Artists

If you plan to use your site to promote your photography or art, you’ll need a lot of media space available. While lower quality images take up less space, they’re not the best decision for promoting yourself.

To ensure you can keep a high-quality archive, your website builder should have a high data limit. While rare, some free plans will allow for unlimited storage space.

For Nonprofits

When setting up a nonprofit organization website, you’ll need a website that can accept donations directly or direct visitors to the appropriate donation links.

Even if they don’t have a built-in donation function, see if you can embed codes on the site (like a PayPal button).

For Classrooms & Teachers

Building educational websites can require some specific features, but you can get a lot of use from free website builders.

Factor in features like templates, site designs, forums, and log-in features for students in your search. Privacy functionality is also essential for protecting the information of any students

For Small Businesses

Some small business sites will focus on promoting their services, but you can also set up a website to sell products. For those who wish to do so, having ecommerce functionality is going to be an essential feature.

Free ecommerce features tend to have strict limits on how many products you can sell at a time, while other free plans may not include any ecommerce functionality. Know that, in time, you will likely need to upgrade to a paid plan to take full advantage of ecommerce tools for your business.

General Tips

Want some extra tips? Consider these before you start your free website builder hunt:

Plan your site before you search. If you know what you want your website to be like, you can make a more informed decision when comparing options.
Consider if you need third-party extensions. If you want to connect content from YouTube onto your site, can the builder handle it?
Think forward. A successful website will eventually grow. If you foresee yourself ultimately growing out of the free plan, do you like the options that the paid plan offers?
Make sure there’s a free plan and not just a free trial. Some popular website builders, like Squarespace, only have a free trial in place, and you’ll have to pay to maintain service. If keeping things free is your goal, then confirm the service plans before you commit.

Next Steps

Now that you know how to choose the best free website builder to meet your needs, you may be wondering what comes next. Naturally, you’ll need to compare free website builders and pick the one that meets your needs. After that, follow these steps to get your website off the ground!

Sign up – Go to your builder of choice’s website and follow the steps to sign up. You’ll need to provide an email and a password. The platform may also ask you to create a username.
Begin the design process – What this looks like can vary between website builders. Some will have you fill in a design quiz to make a starting point for you, while others will drop you straight into selecting a template.
Add your content – After you have a base to work with, you can begin updating any placeholder content (such as text or photos) to your site’s information. As you go, you can tweak elements of the already existing design, such as colors, layouts, and more, depending on what’s available.
Go live! – After you’ve completed all the design work, you can press “Publish” and let your site out into the world for people to visit. Note that some website builders won’t allow you to update your site after it’s gone live, so be careful once you’ve chosen to do so.

Wrap Up

Since different websites have different needs, there’s no “one size fits all” solution available. Here’s a summary of the best options that I’ve found for most readers.

Google Product
Easy Setup
Focus on Simplicity
Quick Site Appeal

Google Sites

View Plans

Built-in Features
Drag + Drop Design
Focus on Usability
Growing Site Appeal

Wix

View Plans

Lots of Options
Future-proofing
Focus on Versatility
Content Site Appeal

WordPress

View Plans

Focused on other free options?

MailChimp is email & digital marketing software with a bundled website builder that’s free up to 2,000 contacts (see review). View plans.

And Weebly has the best ecommerce options with their free plans (see review). View Plans.

With the variety of options out there, there’s a free website builder that’s perfect for your needs. All you need to do is use the factors and tips we’ve provided to find which one is best for you!

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August 18, 2020

eCommerce SEO: The Complete Beginner’s Guide For Online Sellers

You’ve got a dynamite online store and unbeatable products that should be flying off the virtual shelf. So why aren’t customers flocking to your website to buy?

You probably designed your website with your customers in mind, making it easy for them to find what they need, once they make their way to your store. But if you stopped there, that may be the source of the problem. Even the best online store will go nowhere if your ideal customers aren’t able to find you, and that’s where SEO comes in.

SEO stands for “search engine optimization,” which sounds pretty technical. Fortunately, it’s not that complicated, although there is an art to getting it right.

Every eCommerce seller needs to know at least the basics of SEO so that you can help put your brand and your products in front of the right customers to increase your sales. That’s where this guide comes in. It’s a beginner’s guide to eCommerce SEO â for people who know that SEO matters but don’t really know where to begin. Keep reading, and we’ll walk you through the basics, so you start feeling comfortable tackling the first steps of adding SEO to your website.

What Is SEO?

Customers who have your store’s URL, or web address, can type it into their browsers and visit your store easily. For customers that already know about you and want to buy from you, SEO doesn’t matter a whole lot. It’s the potential customers, those who will open their browser to a search engine such as Google and type something along the lines of “Where can I buy (your product)”â those are the ones you can guide to your online store through the skillful use of SEO.

Think about it like this: Google executes an estimated 63,000 searches every second of every day, according to Internet Live Stats. Those searches are based on information Google organizes in a search index and sorts with complex and secret algorithms. Google says that its search index contains hundreds of billions of web pages, and it’s big: over 100 million gigabytes. The index has an entry for every word on every webpage indexed, and those entries are what Google sorts through in deciding how to present answers to users’ search queries. If your site contains the right words, among other factors, you’re more likely to show up in search results.

Why SEO Matters For Your eCommerce Store

SEO is a modern-day marketing technique. In the old days, you might have put an ad in the Yellow Pages or the local newspaper. Today, instead of designing print ads, you can drive traffic to your store by developing your site with SEO in mind. SEO is so vital to business success today that US companies will spend an estimated $79 billion on SEO marketing in 2020, according to Statista. Here’s why companies are willing to invest that kind of money:

SEO Can Be Free

When you place an ad, whether it’s in print or online, you’re paying for a service. When you learn to use SEO techniques to draw more customers to your online store, that’s known as building “organic traffic,” meaning customers are naturally finding you rather than you reaching out to them through paid advertising. You’re not paying anything beyond the time you invest to gain SEO skills. And sure, you could pay a consultant to do that for you, as the biggest eCommerce players do, but there’s no reason everyone involved in eCommerce, especially those working on a small scale, can’t learn to use SEO to improve site traffic.

SEO Helps You Improve Your Website

As you learn more about SEO, you’ll find that at the most basic level, it just means using the same language on your web store as your customers use when they’re searching for products and solutions like those you’re offering. So when you start using those words more frequently and more prominently on your web pages, you’ll start to connect better with your customers, boosting sales in the process.

SEO Delivers Long-Term Results

When you gain a handle on SEO and use it appropriately, you should start to see increased traffic to your store. The best part is SEO isn’t something you have to update continually. Get it right, and you can continue to tweak it, but you won’t have to reinvent your strategy every quarter or year. There are other things you will need to update to stay relevant â Google favors recent content, for example, so you’ll want to keep adding fresh blog posts, product listings, photos, videos, and so on.

eCommerce SEO Basics Every Online Seller Needs To Know

Once you understand why SEO is worth investing your time in â and if you’re convinced that it’s something you can do yourself â you’re ready to learn some of the SEO elements you can start working on today. The following is a collection of SEO elements that are proven to improve your website’s search engine performance. These may sound unfamiliar, but we’ll walk you through the basics of each, including steps you can take right away to start improving your SEO performance.

Keywords
Title tags
Meta descriptions
Image alt tex
Product listings
URLs

Keywords

One of the easiest ways you can boost your website’s SEO performance is to brush up on keywords.

What Are Keywords

Keywords are search terms. Interestingly, keywords can be a single word or a short phrase that commonly appears in search terms. They help your website rank higher and appear in the results of web searches. In the example below, the most important keywords would be “color” and “banana.” So if you wanted to draw people searching for the answer to this question to your site, you’d want to be sure to feature those words on your website.

Screenshot of Google search page captured 8/13/2020

Keywords Research 101

Hopefully, most of your customers don’t need to look online to find out what color bananas are. But they may be performing searches like the one below. For this example, just substitute one of your top-selling products for the words “blue jelly beans,” and you’ll see one way that customers can find you.

Screenshot of Google webpage captured 8/13/2020

If you were to click on the top few results from this jelly bean search, when you visit those web pages, you’d see that every one of them uses the words blue, jelly, and bean in their product titles and descriptions. That’s SEO at work! Those websites and products show up in this very simple Google search because they prominently feature the words we searched for.

You can get started improving your SEO game by looking at your products and your brand to identify a few keywords you want to be associated with. Visit your top competitors’ online stores. What words do you see, over and over, in their product titles and descriptions? If you want your website and your products to show up in more searches, you should make sure that you’re featuring those words too.

Then take it one step further and look to see what your customers are looking for. That will allow you to market your products more effectively by hitting the right keyword searches. There are two types of tools that can assist you in this:

Free Tools

You can learn to use keywords more effectively, without spending a nickel. Here are a few good tools you can start with. These may offer a free trial, or they may be forever free.

Google Analytics
Amazon SEO
Pinterest Trends

Paid Tools

You can do quite a bit when you start exploring the free tools mentioned above. If you’re ready to devote a little more time and even some money to your SEO strategies, you can invest in one of these more advanced tools. You’ll find they have a learning curve, but the payoff will be worth it.

SEMRush
Ahrefs
Moz

Title Tags

Improving your keywords isn’t the only thing you can do to improve your SEO results. Pay attention to title tags as well because they’re one of the first things potential customers see when they search via Google. So if you want people to click through to your store, you need effective title tags.

What Are Title Tags?

A title tag is an HTML element that specifies the title of a webpage. Here’s how it looks:

Screenshot of page source code captured 8/13/2020

You can check out the titles of any web pages you’d like. Simply load the page on your browser and hit Control + U to View Page Source. Next, hit Control + F and type “title” in the search box that pops up to see the title highlighted in the code. Everything between the highlights that read “title” is that web page’s title tag, and they usually are displayed as the clickable link on search engine result pages.

Tips For How To Write Title Tags

If you’re using an online sales platform (such as Shopify, for example) or a website builder (such as Wix, among others), the program you’re using will create title tags for you based on the words you enter for each page. You can, however, edit those automatic title tags if you wish. Search the help feature to find out the best way to do that on the platform you’re using. Here are some general suggestions for writing title tags:

Keep It Short

There’s a limit to how many characters can be displayed in a search engine response. The best advice is to keep your title below 70 characters, so the whole thing appears in search results.

Use Lots

Every single page needs its own title tag. That helps your site to show up in more online searches.

Include Keywords

Make sure to include the most important words in your title tags to improve your ranking in search results. Think about what words customers will use to search for products like those you’re selling. Those are the words you want to include in your title tags.

Meta Description

Meta descriptions are a page element that doesn’t necessarily help your search engine rankings, but they can help drive traffic to your online store. The key: Include words that give customers a reason to want whatever it is that you’re offering them.

What Are Meta Descriptions?

A meta description is another HTML element, sometimes called a “snippet,” that’s used to summarize each webpage’s content. Execute a search, and you’re likely to see these snippets, or summaries, in the search results. Here’s an example:

Screenshot of Google webpage captured 8/14/2020

In this case, the meta description offers a short overview of the content you’ll find when you click on the link and read the articles that appear in this search result. If your customers are searching for products like yours to buy, you’ll want them to see compelling product descriptions in your meta descriptions that give them a reason to buy. That can be done by using important keywords to show them that they’re on the right track and compelling action words that give them an incentive to click through to your page.

Tips For How To Write Meta Descriptions

As with title tags, if you’re using a web builder or a shopping cart platform, meta descriptions will be automatically generated for you. However, you can edit them if you wish. Here are some general tips for writing meta descriptions that deliver results:

Keep It Short

Search engines allow only so much room for meta descriptions to display. So to keep descriptions from getting cut off, you should keep them under 160 characters. If you do go over, make sure that you front-load the most important words.

Compare, Then Contrast

Look up some of your competitors’ meta descriptions. Google them, and notice what snippets appear when you do. To a certain extent, you want to use the same language that the majority of your competitors are using. But if you’re going to stand out from the crowd, you’ll need to go beyond. Make sure you include valuable keywords but also provide a compelling reason to visit your site instead of theirs.

Sound Like A Person

Remember that online shoppers are looking for sites they can trust. They’re more likely to click on a link that makes them feel they’re engaging with a human being and not a sales-generating robot. Yes, you need to keep it short, and yes, you need to use important keywords. As much as you can, use a conversational tone in meta descriptions rather than making a blatant sales pitch. That means telling people what’s in it for them or how they will benefit from visiting your site.

Image Alt Text

Although there are billions of words on the internet, it’s the images that capture customers’ interest. That’s why photos of your products are so crucial to eCommerce. What happens, though, when your photos don’t load for some reason when customers are searching online?

What Is Alt Text On Images?

Unfortunately, there are lots of reasons why your images might not load on customers’ devices, especially on phones. The problem may be on the customer’s end, or it may be that your photo files are just too large and cause the browser to time out. That’s why you need to include alt text for every image on your website.

Alt text (sometimes called alt tags or alt descriptions) is written words that can appear in place of images that fail to appear on a user’s screen. Importantly, alt text also is used to describe images to visually impaired readers.

Tips For How To Add Image Alt Text

Remember the old saying, “A picture is worth a thousand words”? When your website’s pictures won’t load or can’t be seen, you don’t have 1,000 words to replace them. So you have to make the few words you have available count. Here’s how:

Be Descriptive

If you couldn’t see a product picture, what would you still most want to know about it? Tell customers exactly what the photo shows. This isn’t the time to overuse keywords in an attempt to boost your search engine rankings. In fact, if you stuff alt text full of keywords, it may make your site seem untrustworthy. If you do use keywords, use them only once per image.

Know When To Stop

Experts agree that you should limit alt text to 125 characters. That limit doesn’t allow a lot of words, maybe 10 or 15, depending on their length. Opt for smaller words with similar meaning, such as big instead of large, to save characters.

Product Listings

Each time you list a product for sale in your online store, you’ll have a chance to enter a description of that product. You already know that it gives you a way to entice customers to buy from you. But did you know that your product listing can also affect how many customers find your store?

What Are Product Listings?

Search engines such as Google look through the words on your product pages, looking for keywords that determine how high your page will rank in users’ searches. So when you create a vivid, descriptive listing with an eye toward SEO, you can increase not only sales but also traffic overall.

Tips For How To Write Product Listings

If your goal is to show up in search listings and to rank as high as possible, use these strategies:

Use A Variety Of Keywords

While it’s never a good idea to repeat keywords (that’s a strategy that will backfire because it makes you look like a spam site), you can use an assortment of them, including variations. For example, suppose that you sell T-shirts in your store. If your product description reads “Blue T-shirt with starfish design,” you may rank high when customers search for those exact keywords. But what about those looking for 100% cotton shirts, shirts with ocean themes, screen-printed T-shirts, and so on? You will draw more customers your way with a product description that includes all of these relevant words.

Highlight Differences

Take a look at your competitors’ product listings, noticing what they leave out. You can add words to our listings that capitalize on those differences. If your prints are made with organic soy ink and recycled paper, say so. Go even further by explaining why and using words such as nontoxic and zero-waste that will appeal to your ideal buyer.

URLs

It stands for Uniform Resource Locator, and you use them every time you type in a web address. But what exactly is a URL, how does it relate to SEO, and how can you use your URLs to draw traffic and increase sales from your online store?

What Are URLs?

Most of the internet actually is constructed of numbers and letters. Every device that connects to the internet has a series of numbers and letters called an IP address. The problem is, those IP addresses are not handy and easy-to-remember words such as Amazon and Google. That’s where domain names come in. You register your website with a domain name, usually the name of your business or something similar.

Although a lot of people think a URL is the same thing as a domain name, it’s not. Your domain name is a part of your URL, however, combined with numbers and letters that provide a sort of roadmap telling computers how to get there. Every webpage has a unique URL.

Tips For SEO-Friendly URLs

Search engines look at your URL, among other SEO functions.

Keep Them Simple

URLs should be simple and descriptive of the content, using keywords and product titles as much as possible. Don’t reuse them, though. You risk your credibility when you overdo it. Check your URLs before you publish pages. If the URL was automatically assigned, you might see a string of numbers and letters at the end. If so, you need to edit that. Those letters and numbers are meaningless to customers and hard to remember. Replace that with words that have meaning.

Make Them Descriptive

If you have written a blog post, for example, to highlight a new product line, the URL for that post should include related keywords that let readers know about it and ensure it ranks in online searches.

Use Proper URL Punctuation

Forget everything you learned in grammar school about capitalization, punctuation, and spacing. Good URLs use all lower case letters, not capitals. And you should use dashes to link words in one long chain, with no spaces: best-ecommerce-seo-tips is the most effective way to write it.

Getting Started With eCommerce SEO

Now that you’ve made it through this crash course in the basics of SEO, you may have more questions than answers. That’s okay. SEO is a vast topic, with experts devoting their careers to advising businesses on the subject. For a small vendor who is just getting started, SEO can feel overwhelming. The best antidote to that feeling is not to put it off â or to begin budgeting for consultants’ fees. Your next best step is to pick one small area to start improving on in the big field of SEO.

Our suggestion: Start by updating your title tags. Research the keywords your competitors are using and make sure to incorporate them into your title tags. Record the changes you make, so you can track what works and what didn’t. Then you can try again to improve if you need to.

Remember that SEO is an ongoing process, not something you do once and then forget about. You’ll want to stay on top of keyword trends, particularly as you add new and different products. Managing SEO can seem like a daunting task. That’s why we say to take it slow. Any changes you make are a step in the right direction. You may feel daunted by the process, as you’re first building your skills, but you’ll find that the effort you put into SEO will more than pay off. So what are you waiting for? It’s time to get started using your new SEO knowledge to boost online traffic to your store.

The post eCommerce SEO: The Complete Beginner’s Guide For Online Sellers appeared first on Merchant Maverick.

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August 17, 2020

How To Get A Loan For Your CBD Business (Without Getting Scammed In The Process)

Interest in Cannabidiol, commonly known as CBD, has skyrocketed in recent years as people have turned to this cannabis-derived substance for a variety of medical ailments. While the FDA has approved CBD as a treatment for seizures caused by two forms of epilepsy, many use CBD to treat a variety of different conditions from anxiety to pain disorders, though the FDA has not yet approved it as a treatment for these conditions. Nonetheless, the 2018 federal legalization of hemp and hemp-derived products (with restrictions) has sparked a boom in CBD-related commerce.

Unfortunately, an opaque thicket of legal and regulatory complications still makes it difficult for a CBD business to get approved for a loan. In this article, we’re going to delve into the factors that complicate a CBD business’s quest for funding and help direct you to the types of loans a CBD business can qualify for â and where to look for them.

Why Most Lenders Refuse To Loan To CBD Businesses

If you’re running a CBD business, it can be hard to obtain a business loan. You’ve likely already discovered this if you have a CBD business, and you’ve tried to secure funding for it.

Until the enactment of the 2018 Farm Bill, hemp (which legally must contain 0.3% or less of THC, the psychoactive component of cannabis that produces the “high”) was just as illegal in the US at the federal level as psychoactive cannabis, as the Controlled Substances Act did not differentiate between the two. This means that until just two years ago, it was illegal for federally-insured financial institutions to lend to sellers of CBD, despite the existence of various state laws establishing state-legal markets for both CBD- and THC-containing products.

Even though growing and cultivating hemp has been fully legal for two years, lending institutions haven’t built up much institutional memory when it comes to navigating the complexities that still exist surrounding the sale of products derived from the Cannabis sativa plant. Hence, many banks still shy away from lending to CBD companies, while other lenders might deal with some sectors of the CBD industry but not others.

Regardless of the headaches involved, it is possible for you to get a loan for your CBD business. Let’s discuss the types of loans best suited for companies dealing in CBD products.

Best Types Of Loans For CBD Businesses

The type of loan you’ll want to look for will depend on the kind of expenses you intend to put the money toward. Let’s discuss the different types of loans a CBD business would typically pursue.

Equipment Loans

With an equipment loan, the equipment you use the loan to buy is used as collateral for the loan. If you’re in the business of growing hemp, you may need an equipment loan to purchase machines to harvest and extract the flower. If yours is a smaller boutique operation, and you want to grow indoors, you could use an equipment loan to purchase grow lights, inline fans, and other hydroponic supplies. Once you’ve fully repaid the loan, the equipment will be yours to keep. However, if you default, say goodbye to the supplies.

Merchant Cash Advances

A merchant cash advance can be a good option for a CBD startup without any business history or a CBD business struggling to qualify for a traditional business loan. Merchant cash advances provide you with a short-term cash infusion. In exchange, you repay the advance either by sending the lender a percentage of your sales on a daily basis (though some providers may let you pay on weekly or monthly) or by repaying a fixed amount on a daily (or weekly/monthly) basis.

Merchant cash advances are not typically recommended as an option of first resort due to the pricey fees charged and the fast repayment required. But for the CBD business unable to qualify for a traditional loan, a merchant cash advance can be a workable short-term funding solution.

Lines Of Credit

If you don’t need a large lump sum of cash and instead want a credit line you can draw from similar to a credit card, a business line of credit may work for your CBD business.

With a revolving line of credit, the total amount you can borrow (referred to as aÂ credit facility) gets replenished as you repay the money you’ve actually borrowed. This way, you only borrow the money you need while keeping a financial safety net in place that you can draw from should a pressing need arise. The main caveat here is that a line of credit can be difficult to qualify for â perhaps even harder to qualify for than a traditional business loan. CBD businesses with at least six months of business history are much more likely to qualify.

Term Loans

We’ve discussed alternatives to “regular” business loans here, but depending on where you look (we’ll get to that part in a moment), you may, in fact, be able to qualify for a traditional business term loan.

You might be looking to expand your operations significantly or engage in other money-intensive projects. In that case, a term loan will cover your needs more effectively than some of the “alternative” types of loans, many of which involve smaller amounts of money and shorter repayment terms. Of course, without any business history, traditional business loans are quite difficult to obtain, so CBD startups may need to look for another type of funding.

Where To Find CBD Business Loans

As I’ve mentioned, banks tend to be skittish when it comes to dealing with anything related to the historically-stigmatized (not to mention criminalized) Cannabis sativa plant. If you have a good working relationship with your current bank, you may want to discuss the possibility of getting a loan for your CBD business with them, particularly if they have a track record of being progressive on other issues. Don’t be surprised if they turn you down, however â and if you have reason to believe that even broaching the subject with your bank might jeopardize your existing relationship with them, skip this step altogether and look elsewhere for funding.

As it happens, you’re much more likely to find an online lender willing to work with your CBD business. Try seeking a loan from one of the following online sources:

Cannabis Lenders

A simple online search will turn up a number of companies offering funding for qualifying cannabis-related businesses. While some of these lenders specialize in recreational or medicinal marijuana and not CBD businesses specifically, they may still be willing to work with you. Contact a cannabis lender to see if yours is the sort of business they’d like to work with (and vice versa).

High-Risk Lenders

Other online lenders offer loan products to borrowers considered “high-risk.” These lenders may be more likely to lend to you than your standard online lender. Read our article about high-risk business loans to get a better idea of this part of the lending industry.

Crowdfunded Loans

Some online lenders specialize in crowdfunded loans. Getting a crowdfunded loan â also known as peer-to-peer (P2P) lending or debt crowdfunding â involves having a lending platform offer your proposed loan terms to a crowd of loan investors. You then pay back these investors with interest.

Individual investors may be more inclined to work with a CBD business than larger, more cautious lending institutions. That’s why debt crowdfunding sites are worth checking out for owners of CBD businesses. Check out our explainer piece on debt crowdfunding to learn more.

How To Make Sure Youâre Getting A Good Deal

Unfortunately, there are plenty of shady business loan servicers out there that gravitate toward businesses considered high-risk. To assess whether a given lender is legitimate and whether the loans they offer are reasonable, you’ll need to do your due diligence:

Check The Lender’s Online Presence

Any fly-by-night outfit can create a cheap website touting its lending services. A genuinely convincing online presence is harder to fake, however. Check for any social media accounts associated with the company. Search for news articles and press releases that mention the company. Look at the company’s About page on its website (it should have one!) and see if it seems legit. See if you can find names and/or profiles of the people who run the company. Lastly, look for user reviews and comments about the company. While most every lender has its detractors, you should find at least some evidence of a legitimate company by reading customer feedback.

Examine The Full Cost Of Borrowing

When considering a lender’s loan products, it’s important to look at more than just what your monthly payments will be. Look out for any extra fees you might find yourself on the hook for, including:

Origination fees
Closing fees
Application fees
Packaging fees
Referral fees
Guarantee fees
Assessment fees
Prepayment penalties

Check Reviews Of The Lender

It’s always helpful to read a professional reviewer’s opinion of a lender, as you’ll gain insight from the research done on the company’s history and from comparisons to the leading lenders in the field. To that end, check out our full list of small business loan reviews, You can filter your search and get results fitting your business situation by entering your time in business, your credit score, and other factors. Pretty cool, huh?

We’ve also got a handy guide to the top small business lenders of 2020, along with our small business loan comparison chart.

Other Resources For CBD Businesses

Here are some additional resources for those of you in the CBD industry or the cannabis industry more generally. If you’re just starting out or if you want to build up your current operation, have a look!

Everything You Need To Know About Finding A CBD Merchant Account & The 6 Best CBD Payment Processors
How To Finance A Medical Marijuana Dispensary
Need A Merchant Account For Your Medical Marijuana Dispensary?
Need A High-Risk Merchant Account? Here’s The 6 Best Payment Processors To Work With
What Are High-Risk Business Loans & Where Do I Get One?

The post How To Get A Loan For Your CBD Business (Without Getting Scammed In The Process) appeared first on Merchant Maverick.

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August 17, 2020

Angel Investors VS Venture Capitalists: Whatâs The Difference & Which Is Right For Your Startup?

If you’ve spent any time here on the Merchant Maverick website, you already know what most business owners are looking for: funding. Sure, we all want to be successful and fulfilled by doing what we love, but the only way businesses can do that is with access to capital.

Of course, you can always hit up your local bank or credit union, search around the web for online lenders, or launch a crowdfunding campaign. But why limit yourself to these options when you can attract investors that bring capital, industry experience, and so much more to help your startup business grow.

Whether your startup is already showing signs of success or your business is still just a plan for the future, if you’re interested in how investors can help you take your business to the next level, then this article is for you. In this post, we’re focusing on two types of investors: venture capitalists and angel investors.

It doesn’t matter if you have a little bit of knowledge about these investors, or you’ve only heard them mentioned in news articles. This post breaks down the definition of each, explores the differences between the two, and even offers recommendations for how to choose the best option to fit your business’s needs. So sit back, relax, and let’s jump in.

What Are Venture Capitalists?

A venture capitalist is an investor or firm that gives businesses the money they need to grow from a fund â a pool of money from multiple people. Unlike a traditional loan, this capital doesn’t get repaid on a set schedule. Instead, the investor receives equity in the company â in other words, ownership within the company. We’ll explore equity and what it means a little later.

Venture capitalists typically invest in businesses that have high growth potential. Businesses that receive capital from venture capitalists should be poised to move quickly to grow and expand. Most often, businesses that are funded by venture capitalists are already somewhat established.

What Are Angel Investors?

An angel investor is a little bit different from a venture capitalist. An angel investor is an individual (or in some cases, a group of people) that is well-off and wants to invest in a business in exchange for equity or convertible debt. The invested capital doesn’t come from a fund but instead comes directly from the angel investor.

Angel investors also typically gravitate toward companies with high growth potential. However, angel investors are more willing to take on higher-risk businesses, such as startups and early-stage businesses.

Angel Investors VS Venture Capitalists: Key Differences

Are you still scratching your head? Let’s break down the definitions of angel investors and venture capitalists, then take a look at the key differences between the two.

The Investors

When you work with a venture capitalist, you will work with a venture capital firm or employee of a venture capital firm. This individual or group uses a pooled fund to provide businesses with capital. The pool could include funds from corporations, university endowments, pension funds, and/or other big investors.

If you work with an angel investor, you will receive capital from a successful, wealthy individual or even a group of well-off individuals. This money doesn’t come from a fund but instead comes directly from the individual or group. In other words, they are using their own money, not someone else’s.

Angel investors are not required to be accredited, but many are, which means that they either earned $200,000 per year over the last several years or have a net worth exceeding $1 million.

Types Of Businesses

Venture capitalists provide capital to businesses with high growth potential. These businesses are typically in a position to grow quite rapidly and have already shown a history of success. These businesses can be in a variety of industries, from food startups to up-and-coming technology.

Angel investors, on the other hand, are more willing to work with businesses in their very early stages. Once a business has used other methods of funding, such as friends and family, small business loans, or crowdfunding, it may opt to seek capital from an angel investor before working with a venture capitalist.

Angel investors typically invest in businesses that they are familiar with. Someone who made their money off software or real estate, for example, would be more apt to invest in a new software company or real estate venture.

The Investment

Another big difference between venture capitalists and angel investors is how much they are willing to invest.

One thing to note is that the amount invested varies based on a number of factors, so these are just a few averages to give you a better understanding of what type of capital each kind of investor is willing to invest.

Venture capitalists invest a much higher amount of money â think millions of dollars. On the flip side, angel investors are more conservative, investing, on average, about $25,000 to $100,000 per company.

Equity & Convertible Debt

Whether you receive capital from a venture capitalist or an angel investor, the repayment terms are different from other forms of business funding (such as business loans). Business loans and lines of credit are types of debt financing. That means the business repays the money it borrowed as well as fees and interest assigned by the lender.

Capital received from venture capitalists and angel investors is known as equity financing. Instead of repaying borrowed funds, the investor receives an ownership stake in the business. This means the investor is entitled to a share of the profits and may also be able to make important decisions regarding the business.

How much equity exactly? Well, it depends on multiple factors, including the amount of the investment and the expected return. To get a general idea, venture capitalists may expect equity from 10% to 80%. That’s a very large range, but again, there are multiple factors to consider, and every deal is different.

Angel investors generally expect equity of 20% to 50%. While this can be quite a large share of ownership, remember that these investors are more apt to take on riskier businesses in very early stages.

While both types of investors are repaid through equity, there is one minor difference between the two. In some cases, a borrowing agreement with an angel investor may include convertible debt. Convertible debt is debt that can later be converted to equity â ownership in the business â at a later time as agreed upon by the investor and the borrower.

Now, what happens if the business isn’t successful? Will you be required to pay back the investment made in your business? The good news is that no, you won’t necessarily be on the hook for repaying your investors. However, the investors could liquidate your business and collect all or a portion of their investment if your business fails.

Beyond Capital

One of the biggest advantages of having an angel investor or venture capitalist back your business is that you can obtain more than just capital. While the resources available to you vary depending on your industry and the investor you work with, your investor may have ways that can help fuel growth and improve your odds for success.

In addition to the capital you’ll receive from a venture capitalist, these investors can also help you build industry connections or even find access to other sources of funding.

Angel investors â particularly those that stick with what they know â can often serve as mentors. An investor that made millions in real estate, for instance, can teach you the ins and outs of the business, share industry secrets with you, and help your real-estate-focused company grow.

Which Is Best For My Startup Financing Needs?

Are you ready to take your startup to the next level by seeking out an investor? Before you do, understand which type of investor is best for your business. Know the needs of your business, understand what to look for, and you’ll be ready to take the next step toward getting funding.

Look For Venture Capital If…

Your business has tapped into all other financial resources, including friends and family, crowdfunding, and other types of funding
Your business is at least somewhat established and is poised to grow once you have secured an investor
Your business is very innovative and/or has high growth potential
Your business needs a large amount of capital â for example, $1 million or even more
Your business is positioned to see a large amount of growth and profit that’s worth investing in
You’re prepared to give up equity and control within your business

Look For Angel Investing If…

You’ve used some financial resources, but you’re not yet ready for venture capital
Your business is new or in the very early stages
Your business needs a smaller amount of capital to grow
You’re prepared to give up equity and/or take on convertible debt
In addition to capital, you want your investor to bring industry experience and knowledge to the table

Learn More About Angel & VC Funding

Still undecided on which path to take? Or perhaps you just want to know more about these two forms of alternative funding. If so, check out our other great resources about angel investors and venture capitalists. As with any other type of business funding, make sure to do your research, explore all options, and weigh out the pros and cons. Good luck!

The post Angel Investors VS Venture Capitalists: Whatâs The Difference & Which Is Right For Your Startup? appeared first on Merchant Maverick.

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August 12, 2020

CARES Act Small Business Grants: Check Your Local Governments For Funding

As the COVID-19 pandemic continues its decimation of the US economy, many small businesses have been left in the lurch. The Paycheck Protection Program (PPP) is no longer an option — it shut down to new applicants on August 8 — and the federal government has been locked in a stalemate over the program’s replacement since July.

Thankfully, many state, county, and city governments are attempting to stimulate their local economies by dipping into funding delivered by the CARES Act, the same $2 trillion-plus piece of legislation that ushered in the PPP. Most commonly, local governments have been setting up grant programs for nearby small businesses.

These programs can range in size depending on the area, but frequently offer small businesses the ability to receive grants worth up to $10,000 (or even more in some situations). Grants can be especially lucrative for small businesses — unlike a loan, a grant is essentially “free money” that doesn’t need to be repaid.

There may also be requirements regarding how funds can be used — such as on covering employee payroll, paying rent, or making COVID-related safety improvements. Additionally, only businesses that can show how COVID-19 has impacted their revenue or business model may be eligible.

Here’s a few examples of CARES Act small business grant programs recently announced by local governments:

Atlanta: More than $18 million in funding is provided for small businesses located in Atlanta. Up to $40,000 per grant is available and applications are open until August 31. The city is running the grant program through its development authority, Invest Atlanta.
Blue Earth County, Minn.: This southern Minnesota county is offering $10,000 grants to cover three months of expenses for locally owned businesses. Applications via the county website are open until September 2.
Harrisonburg, Va.: The city’s economic development wing has set aside $750,000 in funding for area businesses. Grants of up to $10,000 are available. Applications will be accepted through August 27.
Henderson, Nev.: $1 million has been allocated for small business grants. Local businesses with 20 or fewer employees can apply for grants between $2,500 and $10,000 through Henderson Now, the city’s economic development branch. Applications close on August 24.
Onondaga County, N.Y.: $500,000 in grant funds is available through the county’s industrial development agency. Companies with fewer than 50 employees may apply for up to $10,000 grants.

States are also getting in on the act. For instance, the state of New Jersey just announced that over $15 million in funding will go to businesses located in counties that didn’t receive direct federal aid.

Illinois recently dispersed $46 million in grant money to several thousand businesses. The state has plans for additional funding rounds in the future.

Pennsylvania received over 50,000 applications during an initial round of grant funding. With such a keen interest surrounding the $200 million earmarked for business grants, the state is currently accepting a second slate of applicants through August 28.

Where To Find CARES Act Small Business Grants

Every local government introduces and announces its grant programs differently. This makes it difficult to provide blanket advice to cover every situation. However, there are still a few general tips that may help businesses in need of grant money.

The first place to look is on local government websites. In many cases, government sites will have an easy-to-spot link to COVID-related coverage right on the front page. Local governments may also use alert banners near the top of their sites to highlight relevant COVID-19 resources.

Local news outlets are another great resource for discovering regional grants. City newspapers, regional magazines, and local news stations often post articles on their websites when a local government announces a grant program. By reading local news sites daily or following their social media accounts, business owners may be able to stay on top of local grant programs better than they might otherwise.

Other Small Business Grant Ideas

Businesses have other avenues to seek grant funding. Visit Merchant Maverick’s guide to small business grants for more inspiration. Startups may want to check out our article on startup-specific grants. There are also grants aimed at minority-owned businesses.

Women-run businesses have a few grant options as well. The nonprofit Women Who Tech is accepting grant applications for startup firms led by women through August 23.

Do you have a story idea, tip, or press release for the Merchant Maverick news team? Shoot us an email: [email protected]

The post CARES Act Small Business Grants: Check Your Local Governments For Funding appeared first on Merchant Maverick.

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August 11, 2020

No Money? No Problem. How To Start A Small Business If You’re Short On Funds

You’ve probably heard the old cliche: You’ve got to spend money to make money. It’s obnoxious, but it does highlight a real problem that anyone setting out to start a business venture will likely encounter. Businesses are investments, and investments imply an allocation of money.

Or do they?

We put out our feelers and talked to business owners who say they started their companies without any substantial outlay of money. How did they do it? What advice would they give other broke entrepreneurs? Read on to find out.

Tip #1: Don’t Quit Your Day Job

At least not right away. You’ll probably need to rely on your current job to keep the lights on while your new business venture finds its feet. According to Jason Littrell of Jason Littrell Ltd.:

I started my business over ten years ago with absolutely no money. I didn’t even have an LLC for six months. The misconception that you need money to start a business really bothers me, so I wrote a book about it. The truth is you can start a business while you already have a job. In the COVID economy, it’s about taking a thorough inventory of your skills and building a business. The hardest part for most people is the sales and marketing part. Most people have a very troubled relationship with money, thus have a difficult time asking for it. You don’t even have to marry your niche, you can just date it for a while to see if it’s working for you. If not, simply change it.

Tip #2: The Type Of Business Matters

Not all businesses are the same when it comes to starting costs. Considerations such as the equipment needed to run your business, any required physical space, and inventory to stock all factor into how easy or difficult it is to bootstrap a new company. Keep in mind the non-financial resources you may possess from your current job or business; working with the resources you have will reduce your costs. The following three stories help illustrate this, starting with Andrew Cao of Motoza:

My business partner and I started Motoza, a digital marketing agency, back in 2011. We had no funding and bootstrapped it from the start of it; we put in about $200 each to fund our new venture.

It was tough in the beginning. Luckily, we worked from home, did not need staff, and did not need to purchase expensive physical equipment. We had some software already so the operational costs were at a minimum.

We had to dip into our savings for the first few months until we got a couple contracts signed to help bring in revenue. The cashflow was still not enough to cover full salaries, but at least we were making something by the end of our first year.

Next up, Ryan Snaadt of Snaadt Media Group:

I started my business in college with a $300 camera from Target â shooting small projects around campus. In less than 12 months, I made over $10,000. I then used the revenue to upgrade my gear, increase my production quality and price point â and grow my business.

The first few years were tough to overcome the ‘just a guy with a camera’ stigma. Then I started offering integrated marketing with the videos. Essentially shoot, edit, produce, and run the ads for clients on social media. This brought much more value to them and transcended the ‘guy with a camera’ stigma to reach more premium level clientele.

For a business today, there are many ‘lean’ ways to start up. Many times a service or consulting business can conduct their interactions over the internet and not require unnecessary overhead like office space, multiple employees, etc. In my world of marketing, it has never been easier to use free platforms like podcasting, YouTube, social media, and others to grow your audience and find more customers.

And from Julie Austin of Creative Innovation Group:

I’m an inventor and manufacturer of a product called swiggies, wrist water bottles for adults and kids. I literally started out with $5.00 and a clay prototype. No investors, no savings, and no experience in running a business, especially something as overwhelming as inventing and manufacturing a new product.

How difficult was it? Extremely! I worked 2 and 3 jobs for years to get patents, buy inventory, and get it off the ground.

How long did it take to become profitable? It took several years to show a profit. But I don’t think all businesses are this difficult to start with no money. It’s a very cash intensive startup.

Tip #3: Don’t Expect Immediate Windfalls

When you’re talking about starting a business without any money, you’re more likely looking at a slow ramp-up than instant gratification. Plan accordingly. While you may begin raking in money right away, your real payday may be months or even years away.

Neal Taparia of Solitaired shares some insights below:

It was very challenging to grow a business without financing. I lived off savings in the beginning, and paid myself just enough for living expenses for years. We became profitable 2.5 years into it, with the caveat I was paying myself minimally.

The biggest pro is it requires you to be disciplined. You count every dollar in and every dollar out, and you make sure everything is spent to best grow the business. If you have a bad hire, you won’t hesitate to make the necessary changes. On the flip side, it takes time. You don’t have outside capital to accelerate your growth. You have to be patient and disciplined to have the long game in mind.

Joan Igawa of Atomic Bullfrog Studios has this to say:

I am a small business owner and had started my t-shirt design business about 3 years ago. I did not use any type of money up front to start. I started on Merch by Amazon which requires no money to start an account, plus all the computers and design software I already had. The drawbacks to this was that it took a few months to start seeing any kind of profit, while toiling day and night creating, researching, and uploading designs. I had to learn how to strategically use keywords so customers could find my designs, as well as testing what was selling well, what was oversaturated, and what certain untapped niches had potential to become very profitable.

Tip #4: It Can Be A Good Way To Launch Companies That Investors Would Overlook

Don’t have a network of investors to hand you dump trucks full of treasure to start your company? That’s not always a bad thing. Investors are looking to win big on their investment, which means they can easily overlook niches that take time and love to develop, while ultimately generating a healthy income. From Meaghan Thomas of Pinch Spice Market:

My partner started our organic spice company, Pinch Spice Market, in 2011 with his former business partner. They started it with just their personal savings, and to this day it has never taken on a loan or received outside investment.

Personally financing the business was certainly the more difficult road to take, but it wasn’t without its perks. They were able to have full control over the product, which was really important to the founders. The company proudly sources spices fair and direct trade from certified organic farmers and co-ops around the world. It’s certainly not the cheapest way to acquire spices, but it is the most ethical way. (We also find it yields the highest quality spices too, as farmers don’t have to worry about living in poverty and can spend time tending to their organic crops, but that’s a whole different story.)

The bottom line with investors was we didn’t want to take on anyone who would just look at spreadsheets and decide it was cheaper to purchase lower quality spices from a standard spice conglomerate like the majority of our competitors do.

Tip #5: Take Advantage Of Free Platforms

The internet can be both a blessing and a curse for small businesses. On the one hand, it puts you in competition with people outside of your immediate geographic location. On the other, it offers you access to those other markets and often at little to no cost. Take advantage of platforms (such as Etsy, Amazon, etc.) to sell and market your products and services without spending too much money upfront. Below is a quote from Ryan Scribner of Scribner Media LLC and Investing Simple:

I have actually started two businesses with $0 in start up money. The first is my YouTube channel, which I started in 2016. The second is my blog, which I co-founded with my business partner in 2018. Since these are online businesses, it was obviously a lot easier to bootstrap it and start with nothing. In 2019, my YouTube channel surpassed $500,000 in revenue and the blog is on track to do around $150,000 in revenue in 2020. These businesses will bring in a combined $1,000,000 by 2021. It was not difficult to start these businesses without money. There was no inventory to purchase, and I simply utilized what I already had around me. I eventually upgraded equipment, but I simply reinvested my earnings back into improvements. To get started with a channel, all you really need is a camera and a computer. For a blog, just the computer will do. It is completely free to post your videos on YouTube or share blog articles on the internet.

Tip #6: Tap Unconventional Sources To Get Financing

You can work around not having much money, but there’s a good chance you’ll run into at least a cost or two early on. From benevolent relatives to personal loans, to crowdfunding platforms (such as Kickstarter), it’s possible to raise funds even if your accounts are empty. Just keep in mind that all of these unconventional sources come with their own drawbacks. You can strain relationships, accrue debt you can’t pay, or add overwhelming complexity or responsibilities to what otherwise would have been a simple business plan.

Note that this often goes against what conventional wisdom says is “the right way to start a business.” But you probably wouldn’t be doing this if you weren’t a risk-taker, would you? Just check out what Frank Chioda of Trivr Eats has to say on this:

We’ve bootstrapped the company so far: pouring our savings and resources into it and we’re very proud of it. I did something that I’m sure many people would advise against. At 29 years old, I emptied my 401(k). I pulled all $50,000 out and put everything into the business. It’s been incredibly difficult and costly, especially compared to many other startups that focus on OPM. Other People’s Money.

But I wouldn’t have it any other way. Savings, 401(k), it’s all just investments in different things and we decided that if we’re going to gamble on someone, I’d rather it be on us. We’ll find out soon enough whether we were right or not.

Tip #7: Be Prepared To Be A Jack-Of-All-Trades

While you may be able to outsource some work for favors or by offering sweat equity in your business to people who help you out, chances are you’re going to have to wear a lot of different hats as your business gets off the ground. You may not be an expert in web design, for example, but you still may have to design a functional one. You may not know much about finance, but you’re going to have to learn how to balance your budget. This isn’t a bad thing. While the salaried world tends to reward specialization, entrepreneurs benefit from a more generalized skill set. From Leigh Louey-Gung of Life Operating System:

I started LifeOS with no money from my bedroom and it forced me to have to learn how to do everything. I learned how to build websites, how to setup forums, how to write articles, how to develop coaching programs, how to do social media, and everything in between.

While it was a struggle and took far longer than it would have if I had money to hire skilled and experienced employees, the skills I learned through that process have put me in great stead to build my later companies and the experience of completing those tasks has given me the ability to hire staff more effectively as I now know what to look for.

Small Business Spotlight: LaTersa Blakely Enterprises, LLC

In 2009, administrative assistant LaTersa Blakely of Peachtree City, GA, realizing that all but $20 of her salary was paying for childcare, left her office job behind so that she could look after her children full time. With the need to stay home with her kids and no money to spend on a business venture, Blakely needed to get creative.

“I started my very first business in 2009, called LaTersa Diaper Cakes and, to be honest, I had no clue what I was doing,” says Blakely. “Because I still wanted to be able to contribute to the monthly household bills, I started selling my diaper cakes on eBay, Etsy, and craft shows. Because I started my business from my kitchen table and only purchased supplies as my orders came in, I was able to make a little money.”

Over time, Blakely sought additional sources of revenue for times when the sales of her diaper cakes were low. She now supplements her sales with digital products, such as ebooks, consulting, and courses. Ten years later, her business is thriving.

Blakely offers a few tips for people trying to bootstrap their businesses:

Start With Digital Products: “It will only cost you time and effort upfront which will lead to residual income over time. Some examples would be printables, eBooks, workbooks, and consultations.”
Offer Coaching Programs: “If you have knowledge that people are asking you constantly, you can package that and sell your knowledge. If you can solve someone’s problem, people will pay you to make their pain go away.”
Host Virtual Workshops: “Collaborate and build relationships with other entrepreneurs and have Summits, classes, workshops all from the comfort of
your home.”
Get Creative: “When you are starting a business, you have to have more than a goal to make money because when you first start out, your money will not come in consistently. You have to have a BIGGER why than making money because if that’s your driving force, when you don’t see the money right away, you will give up. Start small and work your way up. The more creative you can get and keep your expenses low will help you build momentum while you’re building your business.”

Starting A Business With No Money: Have You Found Success?

Have you started your own business with no money? What obstacles and opportunities did you encounter? We’d love to hear about your experiences in the comments.

The post No Money? No Problem. How To Start A Small Business If You’re Short On Funds appeared first on Merchant Maverick.

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July 27, 2020

The Great Coin Shortage Of 2020 Threatens Small Businesses Across America

If you had “Coin Shortage because of COVID” on your 2020 bingo sheet, you can check that box and keep on hunting for other unique or unexpected consequences of this year’s coronavirus pandemic. A perfect storm between closed coin production and a decrease in moving coins through the banking systems has resulted in a coin shortage, and some small businesses are already feeling the impact.

Last month, the Federal Reserve issued a statement on the coin shortage, with Jerome Powell telling Congress: “What’s happened is — with the partial closure of the economy — the flow of coins through the economy has … kind of stopped. The places where you’d go to your coins and get credit … those have not been working.”

Coins Are Stuck In A Stopped System

Treasury Secretary Steve Mnuchin said in a virtual investment summit, “As it relates to coins, so many businesses shut down, a lot of coins got stuck in the system, so we are a little bit far behind on coins.”

There are several reasons why the COVID-19 pandemic has resulted in coins becoming stuck in the system. One is that on advice from the Centers for Disease Control (CDC), many small businesses stopped accepting cash in an attempt to slow the spread of the virus. The shift to cashless transactions and contactless payment systems resulted in fewer coins moving through the system.

With fewer coins going to the bank, banks cannot move coins back out into circulation. The Federal Reserve Task Force, started June 30, is expected to report on their suggestions to mitigate the shortage in early August. According to the Task Force:

“The primary issue with coin is a dramatic deceleration of coin circulation through the supply chain … While there is adequate coin in the economy, the slowed pace of circulation has meant that sufficient quantities of coin are not readily available where needed.”

Decreased circulation has been accompanied by decreased coin output, as the U.S. Mint has dramatically slowed output in an attempt to protect its employees from contracting the virus.

Coin Shortage Impact On Small Business

Grocery stores, car washes, laundromats, convenience stores, dispensaries, vending machines, and gas stations are all businesses that depend on coins. Some of those businesses are still running as cash-only businesses in a credit world. Underbanked and smaller businesses are most at risk of being disproportionately affected by a cash shortage.

This also affects underbanked households who primarily pay with cash. According to an FDIC survey in 2017, 8.4 million households in the United States do not have a banking account of any type. If places are not accepting cash or offering change, or if businesses lose their ability to give change, the impact is greater among these households and cash-only businesses.

In non-COVID days, small businesses could easily receive change from their local banks. However, as some businesses stopped accepting cash and the U.S. Mint slowed production, fewer coins have found their way back to banks. (Third-party coin systems like Coinstar — which banks depend on for coin circulation — have also experienced fewer deposits since March.)

Many small businesses have resorted to rationing their coins. Jeff Lenard from the National Association of Convenience stores told CBS News that, “Right now cash is a problem. [Small businesses] are only being given a fraction of what they normally get in terms of coin.”

Part of the Federal Reserve’s coin task force mission is to safely increase production, but even that might not mean a quick-fix. According to an interview with the Las Vegas Review Journal, Ted Rossman, an industry analyst with CreditCards.com said, “The mint … is working overtime to try to pump more coins into the system … Iâve seen some projections as far out as November.â Rossman, however, thinks that things will look better sooner than that.

In the meantime, some small businesses are asking for coins from customers, and other places are buying coins. Whether those coins actually get into the hands of the small business owners that need them, however, is a different issue.

Yiming Ma, an assistant professor of finance at Columbia Business School, said in an interview with Forbes that the Federal Reserve can’t just flood the economy with coins and hope for the best.

“It’s not a one day and everything is solved type of problem. We should be thinking about how to allocate distribution so it’s taken back in a way to help communities and businesses that are in the most need of coins. It’s easier said than done.”

How Your Small Business Can Respond To The Coin Shortage

If your small business doesn’t need coins to survive, you should help distribute the coins you receive back to your local banks or into local cash-only businesses.

If you are a small business that relies on coins, however, don’t hesitate to put out a “Coin APB” into the world and on your social media feeds. Most of the coins that typically run through our economy are languishing in piggy banks and sofa cushions. Skip the bank and go straight to the community to see if you can nudge some of those coins back into circulation.

For other COVID-19 related coverage, check out Merchant Maverick’s Coronavirus Hub for more articles about how to navigate the pandemic.

Do you have a story idea, tip, or press release for the Merchant Maverick news team? Shoot us an email: [email protected].

The post The Great Coin Shortage Of 2020 Threatens Small Businesses Across America appeared first on Merchant Maverick.

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July 8, 2020

QuickBooks Online Payroll Pricing & Features

When it comes to managing your business, payroll is an integral and time-consuming task. Small businesses that use QuickBooks for their accounting needs may have noticed that the company is always in a state of flux, changing in direct response to client feedback. QuickBook’s recent revamping of its payroll platform is a testament to that commitment to stay responsive and on-trend. There are two different versions of QuickBooks payroll products. The QuickBooks Desktop Payroll system works with QuickBooks Desktop Pro, Premier, or Enterprise. However, the QuickBooks Intuit Online Payroll platform is available for QuickBooks Online clients. And, bonus! Adding payroll to your QuickBooks suite is as simple as clicking a button.

Designed for new or current users, QuickBooks Online Payroll (also referred to as Intuit Online Payroll) offers three online payroll pricing structures — all with full-service, automatic payroll options.

QuickBooks Online Payroll Price Plans

All of QuickBooks Online Payroll pricing plans include full-service payroll. That means even at the lowest pricing tier, QuickBooks payroll includes automatic tax and form filing. QuickBooks Online Payroll comes at three pricing tiers: Core, Premium, and Elite. The program also has month-to-month contracts and no early termination fees. (QuickBooks also runs deep promotions frequently for its products, so be sure to check for any available discounts before purchasing.)

Here are the cost breakdowns:

Core

The most basic payroll program, Core’s Payroll plan, costs $45/month + $4/per employee and includes:

Next day direct deposit
Unlimited payroll runs
Calculates paychecks
Calculates and files federal and state taxes
Calculates and files year-end forms
Expert support
Workplace portal
Manages garnishments and deductions
Offers reporting features
Health benefits management

This program has everything needed to pay employees and file taxes. Advanced HR and payroll support is not available at the Core level, so this is best for small businesses with

Premium

QuickBooks Online Payroll Premium Payroll plan costs $75/month + $8/per employee and includes everything in the Core Payroll plan, plus:

24-hour same day direct deposit
Automated payroll
HR support
Worker’s compensation administration
Assisted payroll setup
Help from US-based expert support staff
Time tracking

Elite

QuickBooks Online Payroll’s Elite Payroll plan costs $125/month + $10/per employee and includes everything in the Premium Payroll plan, plus:Â

HR support with a personal HR advisor
White glove customized setup
Track time and projects on the go
Tax penalty protection
24/7 product support

Extra Payroll Costs & Fees

Intuit QuickBooks Online Payroll does have some additional costs per month depending on your small business needs:

Workers’ Compensation Insurance: Most businesses with one or more employees across the 50 states will need workers’ compensation as a legal business requirement. Workers’ comp pays for medical expenses and lost wages if an employee is injured on the job. Intuit partners with AP Intego’s pay-as-you-go workers’ compensation insurance. There is a $5 monthly fee to use this service. Premiums for workers’ comp will depend on how many employees you have and what type of business you operate.
QuickBooks Simple Start/Essential/Plus: Tracks income, expenses, sales, and sales tax; organizes receipts and maximizes tax deductions. The program also creates invoices and accepts payments. This is an additional $25 a month +, depending on features.
Labor Law Poster Subscription Service: All businesses that have an employee or contractor working for them must display or have available all appropriate labor law posters. Posting this information is a legal requirement, but staying on top of new regulations and changes can be tedious for business owners. Through an add-on subscription, payroll customers can have access to the labor law posters for their state, and QuickBooks will send new posters as needed.
E-File 1099s: In January of each year, your business will need to file the 1099 forms sent out to contractors. This service helps prepare your 1099s via an auto-fill from your Intuit QuickBooks Online Payroll information. You can send PDFs to contractors, and QuickBooks will e-file for you. This additional service is available for $14. You can also order tax forms and other business forms, such as checks, directly through QuickBooks.
Multi-State Processing Fees: If you are processing payroll for people in different states, expect to pay a $12 processing fee per state.
Medical/Dental/Vision: QuickBooks partners with Simply Insured to offer health benefit options to your team.

Which Intuit Payroll Plan Is Right For Me?

	Core	Premium	Elite
Pricing	$45	$75	$125
Next day direct deposit	â	â	â
Unlimited payroll runs	â	â	â
Calculates paychecks	â	â	â
Files federal and state taxes	â	â	â
Files year-end forms	â	â	â
Expert support	â	â	â
Workplace portal	â	â	â
Garnishments & deductions	â	â	â
Reporting features	â	â	â
Health benefits management	â	â	â
Same day direct deposit		â	â
Automated payroll		â	â
HR support		â	â
Workers’ comp		â	â
Assisted payroll setup		â	â
Time tracking		â	â
Project management			â
White glove set-up			â
Tax penalty protection			â

When it comes to deciding which payroll plan is right for your business, you will need to decide how much you can afford and how much work you want to put into payroll. At the Core pricing level, the automated tax filings, basic reporting features, and basic benefits management programs are enough to help a small business with a handful of employees. As a business grows and the HR requirements increase, the offerings at the Premium and Elite levels may align better.

The tax penalty at the Elite level is a great added layer of security, and it comes partnered with a white glove/curated experience for business owners short on time. If your company does not have a bookkeeper, accountant, or HR team in charge of payroll and benefits management, QuickBooks can keep your payroll seamless while also offering tools to meet those other needs.

QuickBooks Online Payroll Support & Customer Service

Each and every payroll plan comes with assistance at no additional cost. The level and detail of that service depend on which service you purchase; the white glove support is only available at the Elite level. However, every level has the following support and customer service options:

Phone:Â Call the QuickBooks phone line to talk to an expert Monday through Friday, 6am-6pm PST, and on Saturdays from 6am-3pm PST.
Online Chat:Â The online chat feature is available 24-7.
Email:Â Customer service is available via email from either outside or inside the QuickBooks program.
In-Software Support:Â QuickBooks offers forums, chat rooms, and guides within the software. Check the online resources for checklists for onboarding or access to other payroll tips from experts. The online help center also directs users to articles, forms, and FAQs to help keep you knowledgeable and organized.
QuickBooks Community:Â In addition to maintaining social media accounts, QuickBooks also has a thriving online Q&A section where users can ask questions to experts in a public forum. Chances are if you are having an issue, someone else has had the issue before, and you can find assistance from the vast QuickBooks community.

Reviews & Complaints

People who like and use QuickBooks are more likely to have a positive experience transitioning to the Intuit QuickBooks Online Payroll system. The platform works seamlessly with other QuickBooks products and earns high praise, especially among accountants/bookkeepers/HR representatives. The software has a 4.5/5 on Capterra (based on 531 ratings) which includes a generous increase in positive reviews since their last update.

QuickBooks receives high praise for its ease of use, its dedication to updates, and its assistance with onboarding. For small business owners using other QuickBooks products, this is a seamless integration guaranteed to work well with your other business software.

When it comes to complaints about the system, reviewers note that while the customer service is kind, it can be difficult to talk to someone with payroll expertise, and wait times for customer service tickets can leave something to be desired.

Getting Started With QuickBooks Online Payroll

Is it time to add Intuit QuickBooks Online Payroll to your business? With its recent changes to its payroll platform, QuickBooks proves that it wants to remain a small business’s best option when it comes to business software. While you might have to pay extra for that Elite service, the features and ease-of-use at all levels mean that QuickBooks should be in contention if you need to add a payroll system. If you are already a fan of QuickBooks, then Intuit QuickBooks Online Payroll will easily win your heart with its efficient and competitive product.

The post QuickBooks Online Payroll Pricing & Features appeared first on Merchant Maverick.

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