If you’re looking to give your small business a competitive edge in a tight labor market, a retirement plan could help you attract and retain qualified candidates.
However, it’s often not so simple for small companies to provide this benefit.
Small business owners say cost, complexity, and headcount have traditionally prohibited them from offering retirement plans.
According to the Government Accountability Office, only 14% of small employers with fewer than 100 employees sponsor a retirement savings plan.
The White House wants to change that. The President signed an order that removes regulatory hurdles preventing small businesses from banding together to create association retirement plans.
Read on to learn more about increased access to retirement plans and other small business news.
New Policy Aims to Expand Small Business Access to Retirement Plans
About half of all U.S. employees don’t have access to a workplace retirement savings plan.
This may soon change, though. The White House wants to make it easier for small businesses to access retirement plans.
A new executive order strives to make workplace retirement plans “much more affordable,” according to a statement from James Sherk, special assistant to the president for domestic policy.
It could take up to a year to implement the executive order, which should give ample time for plan providers and small business owners to plan.
27% of Small Businesses Don’t Have a Separate Bank Account for Business
Small business owners often intertwine business and personal expenses, although it’s important to keep them separate.
According to research from Clutch, more than a quarter (27%) of small business owners use one bank account for all their finances. Nearly a quarter of them have experienced issues when mixing business and personal finances.
Here are some tips to better manage your small business finances.
Is Now the Best Time to Sell Your Small Business?
In a robust economy with soaring optimism, many small business owners aren’t looking to grow—they’re looking to sell.
Seller sentiment has reached a five-year high, according to the International Business Brokers Association. Most (84%) business buyers plan to buy in the next year.
So is now a good time for small businesses to sell? Some say yes—even for entrepreneurs who might not be ready for retirement.
Scams Cost Small Businesses $7 Billion Annually
Small businesses often make easy prey for scammers.
Each year,small businesses lose $7 billion as a result of scams, according to the Better Business Bureau.
Some of the most common scams involve tech support, a bank imposter, a directory listing and false invoices.
Most (67%) of small business owners believe they’re at a greater risk of business scams today than they were three years ago.
Here are some ways to safeguard your small business.
More Than Three-Quarters of Small Businesses Use Social Media
Does your business run a Facebook, Twitter or Instagram page? Your competitors probably do—most small businesses are active on social platforms.
According to SCORE, 77% of small businesses use social media for sales, marketing and customer service.
Considering that seven in 10 Americans regularly use social media, according to Pew Research, social media presents a huge opportunity for small businesses to engage new and prospective customers.
Words That’ll Stick With You
“It’s not just about being better. It’s about being different. You need to give people a reason to choose your business.”
Tom Abbott, American author, and speaker
Small business owners who are eager to land and retain qualified workers can use retirement plans to their advantage. With the government’s new policy, they can more easily provide employees access to retirement plans.
Entrepreneurs can also run their best business by separating business and personal finances, staying mindful of potential scammers, and engaging customers on social media. And if the time is right to sell, small business owners find themselves in a hot market.