Tag Archives: small business

Technology is a Finance Issue – Ask Any Small Business Client

By Charles H. Green

Technology advancements over the past 20 years have had a significant impact on busines and industry, which has led to major changes in output, costs, productivity, employment, marketing and connectivity among other business metrics. Small companies have often been on the leading edge of these changes because they are more nimble and will often realize faster improvements (and profits) by adapting sooner.

The National Small Business Association (NSBA) recently conducted their second survey of technology adoption and dependency among their members and posted some interesting results. Among their key findings was a marked increase in usage of laptops also, from 67 percent in 2010 to 84 percent in 2013.

An interesting tangential finding was the drop in the number of small-business owners who pay an outside firm to handle their information technology (IT), which they asserted was likely driven by two factors: the economic challenges small businesses have faced in the past few years; and improved IT platforms and the growing reliance on–and therefore need to understand—these technology tools and platforms.

Other results from the small companies surveyed:

41% use tablet devices (which were not available during the 2010 survey);

60% allow some employees to telecommute (an increase of over one-third);

50% don’t have broadband or fast-speed internet because it’s still not available;

27% still don’t use social media to promote themselves.

Why is technology a ‘finance issue’ that should concern business lenders? Because it represents a harbinger of the future horizon for the success of that business.

1. Adaptation of new technology signals better productivity is ahead at a cheaper price;

2. Smaller firms can compete more effectively when visable through the web and recognized in social media. Without breaking into these frontiers, that business will be lost to anyone trying to find it.

3. Mobility will be the most heavily-travelled portal through which future consumers conduct business.

Read more at NSBA.

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Patriot Express Loans Under More Scrutiny

By Charles H. Green

A review by the U.S. Government Accountability Office (GAO) found that U.S. Small Business Administration’s (SBA) Patriot Express loans, valued at $703 million, have a higher default rate than other loans under SBA’s other loan guarantee programs. The GAO report also said that losses for Patriot Express have exceeded its income.

“The Patriot Express program’s overall default rate was significantly higher for smaller loans, especially for loans below $25,000 (20 percent),” according to GAO. And it was revealed that one lender accounted for more than 64 percent of these smaller loans and experienced higher default rates than the remaining lenders.

From 2007 through 2012, losses in the Patriot Express program exceeded income by $31.1 million (not accounting for future fee revenues or funds recovered from loans in default). Patriot Express has continually operated in the red.

In 2010, SBA extended the Patriot Express pilot through 2013 to allow time to evaluate the effect of the program. To date, SBA has not evaluated the program or established a plan of what it intends to do to evaluate it. SBA officials reported to GAO that they “focused their resources on evaluating 7(a) loans because there are many more of them and, therefore, they pose a greater risk to SBA than Patriot Express loans.”

GAO also asserted that SBA’s internal controls over lenders may not provide reasonable assurance that Patriot Express loans are only made to eligible members of the military community and that only these members benefit from loan proceeds. This finding may lead to more direct consequences to participating lenders as this evaluation continues.

Read more at GAO

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When It’s Time to Go Plastic

A clean, accessible accounting system that accounts for every transaction is a requirement for every small business, especially when the company begins to realize increased daily sales.

Trying to keep track of every transaction manually with a paper system can be a nightmare, often leading to missed items and a backlog in processing the postings. Since you also need to know current cash flow and prepare for critical tax reporting and payments, how do you handle all of this efficiently and comprehensively? One way to simplify and make things easier could be going plastic as soon as your doors open.

With electronic payment so widespread, accepting “plastic” payment allows a company to process both credit and debit cards on most of the major networks. Doing so creates easy-to-manage records and paperwork for accounting purposes. Accepting credit/debit card payment also allows a business to be paid immediately rather than waiting for a large personal check to clear.

For small businesses, cash flow is critical. Receiving sales funds as quickly as possible helps a business owner manage his or her company finances on a more predictable basis, paying off vendors in a timely manner. With credit card payments, bounced checks and cash flow hiccups are eliminated. The business knows exactly when and what payment has arrived and can use those funds immediately.

Going plastic also allows a small business to integrate better with e-commerce. Most customers buying goods or services online use a credit card. Small businesses that accept such payments access wider markets, regardless of distance or even country, because the credit card processing companies manage the risk and movement of payments electronically. The customer enjoys risk-free purchasing and the small business enjoys a wider portfolio of customers not possible with cash or check payments.

For tax reporting purposes, most card processing services provide easy-to-download activity records that break out incoming and outgoing funds, the payer and payee, amounts, dates, and what the transaction covered. These activity logs are actual transaction records that are very useful as supporting documentation for tax reporting. So instead of chasing various receipts all over the place, a small business has all it needs on one clean report that can’t be easily disputed in an audit. This reporting format works well for both reporting sales tax as well as business income taxes. Further, the reporting is easily imported into major financial off-the-shelf software programs, producing even easier financial management benefits.

Finally, customers tend to spend more via a credit/debit card payment versus cash. Because the money isn’t due right away, customers find it easier to purchase higher cost items. That in turn means larger sales per transaction for small businesses, which is a good thing when every revenue dollar counts. Up-selling becomes easier too because customers are not concerned about cash in hand.

Using credit cards for your business is a valuable transaction tool and produces greater revenue as well as easier on-the-go financing and important tax records. Smart businesses take advantage of all opportunities, including available payment tools. Go plastic today!

About the author

Kristen Gramigna is Chief Marketing Officer for BluePay, a merchant services provider and also serves on its Board of Directors. She has more than 15 years experience in the bankcard industry in direct sales, sales management and marketing.

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Cost-Saving Tips for Small Business Travel

According to a survey conducted by American Airlines in 2011, nearly half of the small and medium-sized businesses (SMBs) that responded indicated that 10 to 24 percent of their annual budget is allocated for travel expenses — and nearly all indicated that they are actively controlling airline costs. If your small business falls into those categories, we have some cost-saving travel tips for you (courtesy of the U.S. Small Business Administration)!

Use technology wisely to save on airfare. This includes online tools like Skype, Webex and Face Time that can connect you with partners, customers and satellite offices at little to no cost. Consider equipping your field reps or employees working remotely with tablets, smartphones or laptops to make it easy to interact with them. As an added plus, you can use a camera-equipped device to inspect property, equipment or products at a supplier’s or customer’s location. For more on how tech tools can make virtual meetings a part of your business, read this.

Reap the benefits of the sharing economy. If you’re looking to save $$$ on expenses like car rentals and hotel rooms — and don’t mind trying some non-traditional options — check out group sharing websites like ZipCar and ZimRide for the former and Airbnb and CouchSharing for the latter.

Use loyalty programs and business credit cards to save money. According to the same American Airlines survey cited earlier, SMBs say that enrolling their company in a B2B loyalty program is one of the top three methods of maximizing the value of their travel. If business travel often takes you to the same locations and hotels, consider establishing a corporate account that offers discounted rates with a hotel chain. Additionally, the SBA offers some tips for finding the right business credit cards that offer rewards and points programs here.

Shop bargain travel sites (with care). It’s possible to find deals on travel discount sites, especially if you’re combining a hotel, car and air ticket. Shop around, then cross check prices against the hotel or airline’s website or by phone to ensure that you’re getting the best deal available. Providers may match any online specials offered by discount sites, and their cancellation policies may be friendlier.

Manage your costs on the road. There’s an app for that! One to try is Wi-Fi Finder, a free app that lets you search over 500,000 Wi-Fi hot spots (free or paid) around the world to save you hotel Wi-Fi charges and keep you connected. For tracking and organizing your travel budget, the Travel Pocket app (available for a small fee) gives you parameters for time, location and category and lets you convert your reports into a spreadsheet.

Be smart about business expense tax deductions. You probably already know that you can deduct the cost of mileage, airfares and lodging on your tax return, but did you know you can also deduct 50 percent of meal costs, tips, and even dry cleaning or laundry you need doing on the road? The SBA offers more information on deducting your small business travel expenses on its http://www.sba.gov/community/blogs/community-blogs/small-business-cents/going-road-how-deduct-your-small-business-trave.

Bon voyage and happy savings!

About the Author:
Beth Longware Duff is a professional editor and award-winning writer whose work on a wide variety of topics has been published in print and electronic media. She currently writes on a wide range of topics dealing with electronic payment processing and small business merchant services for Merchant Express.

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Is Your Small Business Prepared Should You Die?

Planning for the future is just good business. You sign a long-term office lease, you borrow to buy a car or truck, and you ask your vendors to take payment next month for products delivered today. You honestly expect to make good on these obligations. Likewise, your spouse, family, business partners, bankers, employees, customers, and shareholders are all counting on you to honor all kinds of future obligations.

But what happens if a business owner runs out of future? When a business owner dies, the company can collapse into a giant mess, leaving loved ones struggling to hold up a house of cards.

If you’re thinking, “No problem, I’m insured,” think again. Life insurance is great, but the problem is not just the money. The real problem is one of control and transition. If you die, and your spouse (or other heirs) inherits your ownership, can they run the company? Do they even want to? Do your partners, employees, and customers want to work with them? Like it or not, your death would force together people who may be complete strangers with no particular interest or skill to make things better for each other.

After your (always untimely) death, your family and your business would both be better off if there is a way for them to each continue, separately. To make sure this happens, you need more than just a life insurance policy. You need a clear written agreement between all stakeholders: partners, key employees, stockholders, and, yes, your spouse or heir.

Every stakeholder should understand and sign what is called a buy-sell agreement. With that in place, the business continuity is more certain. Yes, your spouse still inherits your stock or ownership. But the buy-sell policy ensures that the remaining partners or owners use the proceeds from your life insurance policy to buy that ownership from your spouse.

Your family gets cash while your partners or employees get the company. It can be just that simple.

Now let’s look at life insurance again. A good buy-sell agreement relies on two separate life policies, both of which pay the company a substantial amount upon your death:

  • A “key man” policy pays the company enough to get through your sudden departure and hire a qualified replacement. Consider this to be at least equal to one year’s salary. If your company has substantial debt, raise the death benefit to cover it.
  • A “buy-sell” policy that pays the company enough to purchase your ownership back from your heirs should at least match the actual value of your business.

The key man policy keeps your business running. The buy-sell policy can get your family the money they need to be set for life, or at least get paid for all your hard work to date.

To get a proper buy-sell agreement (and insurance policies) in place, follow these four steps:

  1. First, speak with your accountant. Calculate how much the company would need to keep going (or, in the worst case, to wind down smoothly and pay all debts).
  2. Next, speak with your banker. If you have personally guaranteed any loans, or if your other corporate debt relies on your personal participation in the business, discuss how the business would pay this back upon your death. It is likely that these terms are already part and parcel of your loan documents; take a close look.
  3. Now look inside the company. Who would want to own and operate the company when you are gone? Is it a current stockholder or a key employee? Get those people involved in the discussion.
  4. When you have a workable plan, speak with an attorney to draw up the agreement. At this stage it’s important to have an insurance agent and all your key stakeholders involved. A buy-sell agreement should be signed by everyone involved, including your spouse and the spouse of any other key player, in some cases. Follow the attorney’s advice carefully; you won’t be able to renegotiate this when you are gone.
  5. Finally, once everyone who will survive you agrees on what happens next, make several copies of the document and keep them safe.

Remember: It’s your duty to make sure that your current business obligations don’t hamper those you leave behind. To protect your family and friends, don’t put off these important preparations.


David Worrell is founder and chief executive at AmeriStart, and he also writes a blog here on AllBusiness.com about small business money issues.

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Who Knew? You Can Buy Laptops at Midnight in Fergus Falls

One good thing about being an entrepreneur today is modern technology. It is portable, comparatively cheap, and enables many business owners to stay connected. For owners of virtual businesses (like mine) technology allows us to do our jobs from anywhere, at any time.

One bad thing about being an entrepreneur today is †¦ modern technology! Since we’re always plugged in, letting go is nearly impossible. Being tethered to your businesses 24/7 is both a blessing and a curse. Sure, I can take off at a moment’s notice and work from a plane, a car, or in any number of hotels — even the bargain chains offer free wireless these days. But there’s a downside to all that freedom. When you’re wired to the max, there’s a good chance you won’t get much RR. And then there’s the potential nightmare: When you’re that dependent on technology, what happens when it breaks?

I’m not speaking theoretically. This is a true story of taking my business on the road. And you’ll be surprised (at least, I think you will) as to what “saved” me.

My company is virtual and completely dependent upon said modern technology. I own a desktop, two laptops, one tablet, and three cell phones (don’t ask), which you think would be sufficient. Right before leaving for Minnesota (to visit my significant other’s family) the “B” key popped off my HP laptop, which is a major issue when you type the word “business” a gazillion times a day.

I wasn’t that concerned. My HP had been acting sluggish, and I had a new Dell Vostro I was waiting to switch to when I had the time. Trying to be efficient I transferred my Carbonite account (my backup system) to the Vostro. I hadn’t planned on it taking more than 36 hours to transfer my data, perhaps explaining the HP’s sluggish behavior. I had to pause and restart the “restore” process several times before heading west to Fergus Falls, Minnesota, Skip the significant other’s hometown.

Fergie (as it’s affectionately called) has slightly more than 13,000 residents, which is approximately the population of my California neighborhood. The hotel we checked in to had a slow Internet connection, though I was told it was “lightning fast.” This is when the troubles started. I couldn’t find the Carbonite restore link, and must have accidentally clicked install updates. That process was so painfully slow, and I needed to work, so I stopped the installation. BIG mistake. My computer would not restart. I Googled the error message (using my tablet) and quickly discovered to my horror that I had done something that was beyond my meager capabilities and the computer’s own attempts to fix.

So I did what many of you would have done (but maybe not admit to) — I had a mini breakdown. I had assignments due the next day, and lots more to write this week. It would be impossible to write articles on my Xoom or Droid 2. There wasn’t a Staples or Geek Squad within miles to provide solutions. It was 10 p.m. I told my partners they’d have to write some of my blogs. And then I sobbed copiously.

That might seem like an overreaction, but I need a computer to earn a living. The voice of reason came from Skip who said, “Just go buy a new computer.” Sure, I thought, that’ll be easy at 10 p.m. in the middle of nowhere. But it turns out being in a tiny town has its advantages. The Walmart is open 24 hours. So I did what any resourceful (or desperate) entrepreneur would do — I went to Walmart to buy a new laptop.

Since I’m not a Walmart shopper, I was surprised at the array of laptops available. I started to panic again since I’d had no time to do research, but a helpful Walmart employee named Jodi came to my rescue. She narrowed it down to two choices: a Dell and an HP Pavilion. While I was trying to choose, the decision was made for me when Jodi discovered they were out of the Dell model. So I bought a 15.6 inch laptop for less than $500. At 11 p.m. in the middle of nowhere. At Walmart. White knights come in strange forms.

Sometimes the solutions we need are right in front of us, but we’re too short-sighted to see them. I’m a big city girl. It never would have occurred to me to go to Walmart, especially at that time of night, but the small town guy knew better. As much as we like to think we live in a new universe, operating at warp speed through the ether, we’re still tied to the “ancient” brick-and-mortar world. My 21st century tech needs were solved by a store founded nearly 50 years ago.

Do you have a business technology horror story to share? Or better yet, one with a happy ending? I’d love to hear about it in the comment section below.

Follow Rieva on Twitter @Rieva and read more of her insights on

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A Guide to Finding the Perfect Small’Business Smartphone

New smartphones hit the market every day, and it seems like most of them are packed with hot new features. So if you’re shopping for the very latest in cutting-edge smartphone technology, you probably won’t have to worry about getting all the features you need. They’ll be there, along with plenty of surprising new features.

Many of us, however, are buying on a budget. Maybe you want a budget-priced, unlocked smartphone that doesn’t tie you to a long-term carrier contract. Or maybe you’re OK with a contract, but you’d rather go with a carrier-subsidized smartphone that costs you little or nothing upfront.

If that’s the case, then you’ll need to pay attention to which key features you want in a smartphone and, perhaps, make some trade-offs when you review your available options.

With that in mind, here are some features that you’ll find on many — but not all — of the smartphones available today. This list will change over time, because today’s cutting-edge tech will be tomorrow’s basic feature, but for now it’s a great way to help you get the most smartphone functionality for your money.

A big display. The size of a display isn’t always related to cost; the iPhone 4, with a relatively modest 3.5-inch display, is nobody’s idea of a bargain. But many of today’s hottest new phones now sport 4-inch or bigger displays. Just keep in mind that a bigger display often means carrying around a bigger phone.

Also remember that a bigger display isn’t the same thing as a higher-resolution display. The new Motorola Droid 3, with its 4-inch display, has a 960-by-540 resolution, while the iPhone 4 has a slightly higher 960-by-640 resolution.

Of course, the “best” display is always the one that looks best to you. Just think of these numbers as a starting point for narrowing down your choices before you go shopping.

A fast and responsive touch screen. Touch screen technology has improved dramatically over the past couple of years, but it can still be inconsistent. When you try out a phone, work with the desktop; slide, zoom, open, and close items, and note whether the display picks up on your gestures. It’s even more important to try out the touch screen keypad to ensure that it’s as quick and responsive as you expect it to be.

The operating system.  I won’t wade into the religious wars raging between Apple (iOS) and Google (Android) partisans. But I’d be remiss not to point out that there are more than enough differences between the two leading mobile OSes to make it worth your time to learn about both before you make a decision. It’s more debatable whether you should spend time learning about niche players such as the BlackBerry or Windows Mobile, although fans of those platforms will probably take issue with this opinion.

A physical keyboard. It’s getting harder to find a smartphone these days with a physical keyboard, but they’re still out there. If you absolutely can’t stand using a touch screen keyboard, be prepared to focus your smartphone search on models aimed more at hardcore business users, especially those running on the BlackBerry platform.

The app selection. Honestly, it’s hard to go wrong with the app selection for either the iPhone (iOS) or Android platforms. You won’t just find an app for every occasion — you’ll find dozens of them. If anything, it’s almost a surplus, and you’ll have to do your homework to pick the perfect app from so many choices.

Here, too, you’ll find a much smaller supply of apps for platforms such as Windows Mobile, BlackBerry, and especially HP’s now-defunct WebOS. (If you’re considering a WebOS phone, by the way, I suggest you look elsewhere. HP recently announced that it is giving up on its mobile-device offerings.)

Front-facing camera. Want a smartphone that lets you do on-the-go videoconferencing? Be sure to pick a model with a high-quality, front-facing camera. Fans of the iPhone swear by Apple’s FaceTime app for videoconferencing support, although it won’t let you conduct more than a two-way conversation. (For that, you’ll want to consider a third-party app such as Skype.)

Also keep in mind that the quality of smartphone cameras continues to advance rapidly; some now take both video and still footage that rivals what you can get from a dedicated digital camera. If photo and video quality is important — and it is for many business users — then look for a phone that includes at least an 8-megapixel camera and 1080p video capture.

Battery life. Here’s the first thing you need to know about smartphone battery life: It pays to take manufacturer claims with a big grain of salt. Obviously, you can’t sit around with a stopwatch and test the battery life on every phone you consider. Instead, look for quality third-party reviews, and pay particular attention to their battery-life tests.

Expandable storage. Many smartphones now include slots for microSD add-on memory cards. These are a great way to move files quickly between devices without connecting a cable. Better yet, they allow you to back up important data and save it in a safe place.

Standard, nonproprietary chargers and data connectors. Some smartphone manufacturers still insist upon selling phones that use proprietary connectors to charge the battery and transfer data. It’s ridiculous, and it needs to stop — there’s no reason why every phone made today shouldn’t use a standard USB-based cable for charging and file transfers.

A final word of advice: It’s easy to find plenty of professional and user reviews for even the latest smartphone models. Don’t make a snap decision based on just one or two reviews. Instead, look at a cross-section of reviews, preferably from more than one major review website or online retailer. In return, you’ll get some great insights into what people like and dislike about a particular phone.

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Windows XP: Why It’s Time for Small Businesses to Say Goodbye

Ten years ago this week, Microsoft finished up work on a new operating system called Windows XP and shipped it off to PC makers. If you’d told Bill Gates and Steve Ballmer back then that XP would still be the dominant version of Windows a decade later, they would have mocked you.

So would have most Windows watchers, including me. Everybody knew that a major new version of the Microsoft’s desktop OS came along every two or three years. Everybody knew that even hidebound stragglers eventually upgraded.

Bitten By Vista, Shy About Windows 7

Everybody, it turned out, was wrong. According to research firm Net Applications, just under 50 percent of PCs on the Internet run Windows XP. That’s nearly twice as many as the number using the current version of Microsoft’s operating system, Windows 7, which hit the market in October of 2009. XP usage is slipping, but far more slowly than anyone expected.

Even today, I know more than a few small business owners who have no plans whatsoever to give up Windows XP.

How did it come to this? Two words: Windows Vista. The successor to Windows XP, unveiled in January 2007 after multiple delays, just didn’t work well enough, especially at first. Even after Microsoft released updates that made Vista less glitchy, it remained short on compelling features. And some of the features it did have felt like arguments for sticking with XP. (User Account Control, a security safeguard which tried to protect users from rogue software, was a jarring, confusing irritant.)

In the Windows Vista era, many businesses and consumers sensibly ignored Microsoft’s upgrade drumbeat. Many of them continued doing so even after the company released Windows 7. (The fact that Microsoft provides no way to install Windows 7 on top of XP and preserve your current apps and settings hasn’t helped. Unless you use LapLink’s PCMover utility, you need to rebuild your system from scratch if you want to upgrade.)

Windows XP: Not Dead Yet!

Microsoft, of course, relies on sales of Windows upgrades to drive its massive profits. So it’s been trying to wean the world off XP for years. It stopped selling shrink-wrapped copies long ago, no longer lets PC makers sell machines with XP preinstalled, and officially discontinued most support for the operating system in 2008.

But the company hasn’t quite driven a stake through XP’s heart. It says that it intends to provide basic support and security updates for Windows XP Service Pack 3, the current version, until April 8, 2014. And businesses that buy PCs with some versions of Windows 7 have the right to “downgrade” those computers to XP.

My feelings about Windows XP’s amazing staying power are conflicted. On one hand, I understand why small businesses instinctively stick with stuff that’s comfortably familiar. I admire their skepticism about overhyped, underperforming products such as Windows Vista. I think it’s smart that so many companies delay buying new technology until the most serious bugs have been discovered and fixed.

Why the Future Is a Windows 7 World

Here’s the thing, though: Windows 7 is pretty great. It’s the operating system that Vista should have been, and it’s well worth the cost (the Professional Edition upgrade lists for $199.99). Holding onto Windows XP until something better came along was a savvy move; holding onto it forever is not.

A few key points in favor of Windows 7 and against XP:

Windows 7 has a superior interface. Once you’ve acclimated yourself — which shouldn’t take all that long — you can work far more efficiently. Unlike Windows XP, it mostly stays out of your face. (You can prevent apps from distracting you with those annoying pop-up balloon alerts, for instance.) Its Taskbar lets you juggle apps and documents far more efficiently. The built-in search feature is more powerful, faster, and more pleasant than the one in XP. A slicker design and better font rendering makes everything easier on the eyeballs. I could go on for a few thousand more words — and did when I reviewed the operating system in 2009.

Windows 7 is much more secure. Businesses that are still smitten with Windows XP forget that it’s a notoriously insecure piece of software. Microsoft is still creating security updates for XP Service Pack 3, but that’s like trying to patch up an ancient, leaky boat. A recent Microsoft survey reported that Windows XP SP3 computers suffer an average of 15.9 infections by viruses and other malware per 1,000 machines. PCs running the 64-bit version of Windows 7 are infected only 2.5 times per 1,000 machines.

Windows 7 packs 64-bit power. Any PC you’ve bought recently probably packs a potent multicore 64-bit processor from Intel or AMD. It’ll work with Windows XP, but XP is only a 32-bit operating system — which means that your PC won’t run as fast as it could, especially for tasks that involve intense number crunching, such as working with giant spreadsheets and editing video. Windows 7 is available in a 64-bit edition that lets cutting-edge PCs live up to their full potential.

Windows 7 is compatible with the future. For now, most third-party software and hardware supports Windows XP. Given that it’s still the most popular operating system on the planet, that only makes sense. But the mustier XP gets, the more likely you are to find software that won’t work with it. Already, Microsoft’s Internet Explorer 9 — by far the company’s best Web browser to date — is available only for Windows 7 and Vista.

One other argument for upgrading to Windows 7 now: Nearly two years after its release, it’s a reasonably mature operating system. Microsoft released a Service Pack 1 update in February that rolled up all the fixes and tweaks it’s pushed out to date. The chances of you encountering any Vista-like crippling problems are small, and an optional feature called Windows XP Mode is available in case of emergency.

I realize that I’m not going to persuade all of you to dump XP this moment. If you keep using it, however, I beseech you: Please, please make sure you’ve upgraded to Service Pack 3 and that you install new fixes as they come along. That’ll make XP as good as it can possibly be, although it still won’t be nearly as good as Windows 7.

And even if you conclude that you’re happy with Windows XP, you need to plan now for life without it. You certainly shouldn’t use an operating system that’s unprotected from new security attacks, which means you’ll want to leave XP behind before Microsoft cuts off security updates in April of 2014.

By then, the current version of Windows won’t be Windows 7 — it’ll likely be Windows 8. Microsoft isn’t saying when it plans to release that version, but it’ll almost certainly be available by the fall of 2012. I wouldn’t be stunned if it arrives several months earlier than that.

We don’t know too much about Windows 8 yet other than that it sports a rather iPad-like touch-screen interface as well as one that looks more like the Windows we know; Microsoft says it’ll have much more to say at its BUILD conference next month. Stay tuned for news.

And hey, if you remain an XP holdout for now, telling people that you’ve been waiting for Windows 8 all along is a convenient excuse that might also prove to be a rational strategy.

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A Day in the Life of a Fitness Franchisee

When Samantha and Oliver Beltran were only 22, they already knew they wanted to start a business that was fitness related, but they weren’t quite sure where to focus their energy. Oliver went to school for kinesiology but dreamed of owning his own gym; Samantha, a certified yoga instructor, hoped to open a yoga studio. But after seeing the success of a Snap Fitness location in Oliver’s hometown, the husband-and-wife team was ready to join the dynamic fitness franchise industry, and they opened the doors to their very own Snap Fitness franchise in Palestine, Texas, in November 2010.

Getting Started: Much of the Beltrans’ initial work was focused on getting members. The corporate office provided assistance with the grand opening marketing campaign by providing direct marketing materials such as direct mail, posters, and door hangers, but the Beltrans kept the momentum going by getting involved in their local community’s events and getting to know other business owners. “We worked hard to engage the community and create partnerships with local businesses in order to create a working relationship and cross-promote our club to their customers and vice-versa,� says Samantha. Their drive paid off and, within the first six months, the center already had more than 700 members.

The Personal Side: Although the Beltrans received ample training and support from corporate, they still faced a steep learning curve, especially in their first year. Despite being knowledgeable about fitness, they possessed no business management experience and had to quickly learn about paying taxes, managing their finances, selling memberships, and doing bookkeeping. And though their youth filled them with boundless energy, Samantha’s father had to lend a helping hand when their non-existent credit  — due to their age  — prevented them from leasing the equipment they needed.

A Typical Day: With staffed hours from 10 a.m. to 3 p.m. Monday through Saturday, Samantha spends up to 35 hours a week in the club depending on the season, with January and February being the busiest months. When she’s not cleaning, giving tours, or teaching yoga classes, she’s out in the community marketing the business or behind the scenes working on the budget.

Secret for Success: “Our passion to succeed in fitness can be attributed to our background, but even someone with no fitness experience can run a fitness franchise,� says Samantha. “The systems and processes make it very turnkey and easy to follow, but you should definitely have a passion for fitness and helping people get results.�

Sara Wilson is a freelance writer who specializes in issues related to small businesses. Contact her at wilson.sara@gmail.com.

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10 People Who Rose from Employee to Business Owner

From the Mop to the Top

Of all the iconic stories about the United States, none is more enduring than that of the “American Dream,” that we live in a land of endless opportunities where anyone can make it big through hard work and determination.

Of course, this rags-to-riches tale is a little frayed in recent years, as more Americans struggle to make it to the end of the month, let alone reach the top. But it can be done. This is still a place where a penniless immigrant can go from pushing a mop in a fast food restaurant to enjoying life as a multimillionaire mogul.

We proudly present the true, inspiring stories of 10 ambitious employees-turned-business owners who are living the American Dream for real.

— Tim Devaney and Tom Stein

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