JoAnn Laing's Blog - All About Small Business

Large companies may be doing more with AI than smaller businesses, according to a new survey of American workers. Larger companies are more likely to have the infrastructure to support new tech initiatives and help employees upskill, suggests ADP research.

AI + Small Business Usage > Competition

Nevertheless to become and stay competitive, your small business should leverage AI.  Whether your workplace has not yet started or has already begun integrating AI, here are some things you should consider:

• AI needs to be endorsed by the head of the business.

• It can and should be the responsibility of IT and legal.

• AI must be budgeted, as there is expense involved and ultimately gains to be tracked.

• Privacy of company and customer data is paramount, even during proof of concept.

• If making agents, start making them very focused, for one specific task only.

• Education of employees is essential; after all it is your employees who will using and working with AI.

The best way to move ahead is by doing. Consider your business goals and needs, then apply the technology to help you achieve them. 

Selecting the right AI tools and apps for your business involves a strategic approach. Here is a guide to help you make an informed decision:

Identify Your Goals and Needs

• Assess Business Goals: Determine what specific milestones you want to achieve and what challenges do you want to address (e.g., marketing, customer service, operations).
• Define Use Cases: List the tasks you want to automate or improve with AI.

Research Available Tools

• Explore Options: Look for AI tools that cater to your identified needs. Use online reviews, industry blogs, and comparison websites.
• Check Features: Evaluate the features of each tool to ensure they align with your requirements.

Consider Budget

• Evaluate Costs: Analyze the pricing models (one-time fee, pay-per-use, subscription) of the tools.
• Look for ROI: Consider the potential return on investment based on the tool’s impact on efficiency and productivity.

Evaluate Usability

• User-Friendly Interface: Choose tools that are easy to use, reducing the time required for training and ensuring a higher adoption rate among team members.
• Training and Support: Check if the provider offers training resources and customer support.

Assess Integration Capabilities

• Compatibility: Ensure the AI tool can integrate smoothly with your existing systems (CRM, project management, etc.).
• APIs and Plugins: Look for tools that offer APIs (Application Programming Interfaces) or plugins for easier integration.

Check Scalability

• Future Growth: Choose tools that can scale with your business as it grows, allowing for additional features or user capacity.

Read Reviews and Testimonials

• User Feedback: Look for reviews from similar businesses to gauge satisfaction and effectiveness. Pay keen attention to negative comments.
• Case Studies: Explore case studies that demonstrate the tool’s impact on companies in your industry.

Trial Period

• Take Advantage of Free Trials: Many AI tools offer free trials. Use this opportunity to test the tool’s functionality and fit for your business; be careful of protecting your data.
• Gather Team Feedback: Involve your team in the trial to get their insights on usability and effectiveness.

Data Protection

• Read and understand data protection:Learn what is being done to protect your company and customer data, as well as who owns and controls the data.
• In case of breach: Who is the responsible party and what is the remediation protocol.

Make an Informed Decision

• Compare Options: After thorough research and testing, compare your top choices based on feedback, features (including data protection), and pricing.
• Select the Best Fit: Choose the tool that best meets your needs while offering the best value.

Review and Iterate

• Monitor Performance: After implementation, regularly assess the tool’s performance and its impact on your business.
• Be Open to Change: Stay updated on new tools and technologies, and be willing to pivot if a better solution arises.

By following these steps, you can select the right AI tools and apps that will enhance your business and drive growth effectively.

AI Tools & Apps

Here are some tools and apps to checkout:

Content

• Jasper enables users to effortlessly generate high-quality written content. 
• Copy.ai helps users quickly generate high-quality written content.
• Grammarly enhances written communication by providing real-time grammar, spelling, punctuation, and style suggestions.
• Consensus is a research tool that helps get your answers with credited citations, specifically from research papers. 
• Lavendar.ai improves the effectiveness of written content; it also checks the clarity, coherence, and content engagement, and provides suggestions accordingly.
• DALL-E allows users to easily create high-quality images.
• Gamma is an automated presentation generator. 

Communication

• Dialpad Ai for business communications and overall productivity.
• Speechify for turning text into audio.
• Wondercraft AI turns written content into engaging podcast episodes. 

Productivity

• Notion productivity tool that incorporates AI to enhance organization, collaboration, and project management seamlessly.
• Superhuman is an email assistant that streamlines email productivity.
• Vimcal schedules time efficiently; it organizes schedule to maximize work periods.
• GPT-4 for business ideation and general knowledge sourcing.
• Fireflies transcribes and analyzes meetings into a condensed summary for future reference.
• Feedly is a news aggregator app that compiles news feeds to customize and share with others.

Marketing

• HubSpot is a comprehensive inbound marketing platform.
• Canva is an intuitive graphic design tool to help users create visually appealing marketing materials quickly and easily.
• Mailmodo is an email marketing platform.
• Seventh Sense for email marketing campaign management.
• Taplio and Tweethunter are LinkedIn and Twitter scheduling apps with AI features.

Sales

• Salesforce Einstein is an extension of the Salesforce CRM platform that enhances sales processes by providing intelligent insights and automation.
• HubSpot Sales Hub is a powerful sales automation tool that integrates with HubSpot’s CRM to streamline the sales process and enhance productivity.
  • Chorus.ai is a conversation analytics and sales force training tool to analyze sales calls and meetings to improve sales performance.
• 6sense for automating lead capture.
• Clari for sales forecasting.
• Reply.io for sales engagement automation.
• Zia is an AI-powered sales assistant, which aids the sales teams by automating manual entry of leads data, lead scoring, and sales forecasting processes.

Customer Success & Support

• Zendesk is a customer service platform that manages customer interactions across multiple channels, providing a seamless support experience.
• Intercom is a customer messaging platform that facilitates real-time communication between businesses and their customers through chatbots and targeted messaging.
• Freshdesk helps businesses manage customer inquiries through various channels, enhancing overall customer satisfaction.

Knowledge Management

• Kipwise is a collaborative knowledge management tool designed to help teams centralize and efficiently share internal knowledge.
• Confluence is a collaboration tool that helps teams create, share, and manage project documentation and internal knowledge.

Planning & Task Management

• Upmetrics simplifies the business planning process; since it’s a cloud-based application, your team can easily collaborate and work on your business plan from anywhere in the world.
• Trello is a visual project management tool that helps teams organize tasks using boards, lists, and cards, making it easy to track progress and collaborate.
• Asana is a comprehensive task and project management tool designed to help teams coordinate work, set priorities, and track progress in real time.
• Monday.com is a work operating system that enables teams to manage projects, workflows, and everyday tasks in a customizable, visual format.

In conclusion, as you navigate 2025’s business landscape, leveraging AI has become essential to enhance efficiency and drive growth. Please share some of your favorite tools and apps.

2025

An aside: if your business is into creating its own devices, consider NVIDIA Jetson to create breakthrough AI products across all industries.

No one is talking about the looming deadline facing every American corporation in the New Year.  While expected to be leniently enforced in its first months, every small business must comply by early in 2025.

Called the Beneficial Ownership Information (BOI) it is new regulation with a reporting deadline under the Corporate Transparency Act that is fast approaching.  As a result, small businesses face critical compliance challenges and are grappling with how to meet the outlined requirements.

Advisors such as Registered Agents Inc., a leader in business formation services are stepping in to help with expert tips and resources to simplify the process. 

Little noticed two years ago as its provisions were included when authorized by Congress to help anti-terrorist efforts, the BOI requirement will add to the government’s ability to more closely monitor and tax small businesses.

Despite its good intention, the BOI for instance will tighten the net around entrepreneurs with multiple companies who use inter-company trading schemes to reduce taxes. Enacted to combat illicit activities such as money laundering and terrorism financing, the CTA requires most corporations, limited liability companies (LLCs), and other similar entities to file a BOI Report with the Financial Crimes Enforcement Network (FinCEN).

Most corporations, LLCs, and other entities created by filing with a secretary of state or similar office need to provide background on every beneficial owner.  There are no exceptions, however there are Exempt Entities.

There are deadlines for older companies who must file by January 1, 2025.

The enterprises formed between January 1, 2024, and December 31, 2024 have 90 calendar days from the date they receive actual or public notice of their creation or registration to file their initial BOI Report

Businesses Formed on or After January 1, 2025 must file their initial BOI Report within 30 calendar days of receiving actual or public notice of their creation or registration

Failure to file or submitting false information can result in civil penalties of up to $500 per day, criminal fines up to $10,000, and imprisonment for up to two years.

Business owners can file directly with FinCEN themselves or hire a third party like Registered Agents Inc. to file for them.

Trusted partners for entrepreneurs may charge as little as $25 for filing.

“While some competitors in our industry have used the requirement as a way to gouge business owners, Registered Agents Inc. want to reduce any friction around starting and maintaining businesses,” said Jon Garrison, Treasurer at Registered Agents Inc.

Some Expert Tips from Registered Agents Inc.

“Many small business owners are still unaware of these new requirements, which could lead to unintentional violations,” said Jon Garrison, Registered Agents’ Treasurer. “Our mission is to educate and support businesses to ensure full compliance and help them avoid severe penalties.”

1. Assess Whether Your Business Must File:
   • Review Exemptions: Certain entities, such as publicly traded companies, banks, and tax-exempt organizations, may be exempt.
   • Resource: FinCEN’s List of Exempt Entities
2. Identify Beneficial Owners and Company Applicants:
   • Beneficial Owners: Individuals who own or control at least 25% of the company or exercise substantial control.
   • Company Applicants: Individuals who filed the formation documents (for entities created after January 1, 2024).
3. Gather Required Information:
   • For the Company:
     • Legal name and any trade names.
     • Principal business address.
     • Jurisdiction of formation.
     • Taxpayer Identification Number (TIN).
   • For Each Beneficial Owner and Company Applicant:
     • Full legal name.
     • Date of birth.
     • Residential address.
     • Unique identifying number from an acceptable document (e.g., driver’s license, passport).
     • An image of the identification document.

If you are reporting for multiple entities, you can apply for a FinCEN ID, which can be useful but it is optional and not required to complete a BOI filing.

4. Prepare to File Electronically:
   • FinCEN’s Filing System: Reports must be filed electronically through FinCEN’s secure filing system.
   • Create an Account: Set up an account in advance to streamline the filing process.
5. Plan for Ongoing Compliance:
   • Update Reports Promptly: Any changes in reported information must be updated within 30 days.
   • Maintain Records: Keep detailed records to support the information provided in the BOI Report.

“Navigating these new requirements can be daunting for small businesses,” added Garrison. “With our extensive experience assisting over one million entrepreneurs, we simplify the process, allowing business owners to focus on what they do best.”  Of course, this is for a fee.

Additional Resources and Support

• Comprehensive Guide on BOI Reporting:
  Registered Agents Inc. BOI Reporting Resource

It is essential to register your business soon, preferably before the end of 2024.

REGISTER NOW!

Firing people is one of the most difficult tasks managers face. However, keeping the right people on the team and removing the unproductive person(s) is a critical role of a good manager or business owner.

While a disruptive employee can create various problems in a business, from theft, adding to poor morale, to damaging the firm’s reputation, the individual’s release must be handled with care.  In a small company with fewer people, termination is a noticeable event that creates both a temporary void and uncertainty.

First, lay out a framework for deciding whether the employee can be coached to be a better performer or needs to be terminated.

• You should coach a poor-performing employee when they put in genuine effort but lack specific technical skills, have a few specific weaknesses but many strengths, are eager to learn, even if they lack the skill sets needed, embody the business’s culture, and are not jerks.
• If someone is the former, your goal as business manager/owner is to provide coaching and mentorship; there is potential for the employee to perform better. However, having an employee who is the latter would indicate the worker needs to be removed from the team.

• First, define what is not working with the employee and put it in writing.  Then, you need to have a well-articulated reason for firing the employee.

Here are some things to ensure the employee termination process is legal and fair.

In today’s litigious world, it is essential to have documentation (emails, deliverables created, on why someone is being terminated so they cannot file a claim of discrimination or wrongful termination. 

Be careful to avoid discrimination or any claim of discrimination. Remember, it is illegal to fire an employee because of their race, color, religion, sex, national origin, age, disability, genetic information, or other protected characteristics. 

Avoid wrongful termination.  If an employee thinks they were wrongfully terminated, they can file a claim with the appropriate federal or state agency and, in some cases, file a lawsuit.  This will cost the business time and money, perhaps reputation and other employee morale.

Photo by Kampus Production

• Document the firing process by setting up a formal termination process in advance that is consistently used and carefully documented at every step. This includes conversations regarding performance and giving the employee a chance to do better. Make sure your reasons for termination are legal.

Have an initial honest, open discussion with the employee to raise the red flag about what is not working. Provide examples of the problems, clarify any issues, and discuss how to solve them. This step is critical so the employee is not surprised if they are terminated.

Put the employee on a documented and measurable Performance Improvement Plan (PIP). Then, have regular check-ins to share whether performance is improving as defined in the PIP. 

• If the employee is still not performing, identify how you will fill the gap from the person’s role so there will not be a business disruption.  The departing person may have responsibilities that need to be accounted for, so you will need to ask other people on the team to cover their role and monitor the person’s email account until a replacement is hired or the duties are finally redistributed.

Photo by August de Richelieu

• Coordinate with HR and Legal to proceed with the paperwork for the firing, including, but not limited to, any legal letters, the employee’s final paycheck and expense check(s), and perhaps severance, depending on our business policies and finances.

• Also, plan the firing for a time and day of the week that is less disruptive to your business schedule. Some recommend terminating first thing in the morning, ideally before others arrive for the day. Consider having a third person, such as your HR leader, in the room observing the firing.

• Be direct and compassionate during a private meeting. Inform the employee of the decision and clearly state the reason for termination. Keep the meeting brief, factual, and respectful.

Your conversation with the departing employee should be simple and to the point; do not say, “I’m sorry.”  You need to start with the news as soon as you sit down. Say something like, “We need to have a difficult conversation. Unfortunately, things aren’t working out here, and today will be your last day at the company.” 

If the employee argues, do not engage. Rather, end the argument quickly. Say something like, “Unfortunately, this decision is already finalized, so it won’t be productive to go back and forth on it right now.”  Have a box of tissues and treat the employee like a human.

Provide the next steps along with documentation that the departing employee can later read.  Outline the following steps, including details on final pay, benefits, and company property to return.  If applicable, offer assistance such as references or career counseling. Be available for follow-up questions.

Image by Freepik

• Now that the hard meeting is completed help the terminated employee physically transition out.  You can offer to help them gather things from their desk as well. You may need to answer some questions about transitioning work or unemployment benefits.  It is essential to stay with the departing employee until they leave the building to ensure no technology is touched, business materials and equipment remain behind, etc.  Then, you should walk them out, shake their hand, genuinely thank them for their efforts, and wish them the best for finding something new.

• Communicate effectively with other employees so the firing doesn’t negatively impact morale. Keep it brief and have a plan for covering the departing employee’s work, as discussed above. Focus on moving the business forward. 

• Consider your hiring practices moving forward. What needs to be changed to minimize future firings and/or make the firing event go more smoothly?

Please share any processes or tactics that you have found to be effective in managing a firing.

Utilities costs seldom enter in planning efforts by small businesses either considering moving or starting a new enterprise.  Often, businesses in one location for years allow their utilities costs to grow without yearly reviews until they are a significant budget item. 

Small business utilities are the expenses a business incurs for the services that are required to run it, such as electricity, gas, water, sewage, waste management, and telecommunication services.  

Utilities are expected to rise in the future so it is important to plan ahead to cover these essential expenses. 

Here are some things to consider about small business utilities:  

• Cost: the average cost of utilities for a small business is around $2.14 per square foot per month. However, this cost can vary depending on many factors, such as the size of the space, the age of the appliances, the climate, and the building’s energy efficiency.  More specifically, 

Electricity: The average price of electricity for small businesses in the U.S. is 12.76 cents per kilowatt-hour (kWh). However, electricity rates can vary by provider, plan, and location.  States with the lowest cost of electricity include: 

The states with the lowest electricity costs are generally in the central and northwest regions of the US.  Some of the states with the lowest electricity rates include: North Dakota (7.41 cents per kWh), Nebraska (9.85 cents per kWh), Louisiana, Idaho, Utah, Wyoming, Iowa, Idaho, and Oklahoma. Hawaii has the highest average electricity rate in the US. 

Gas: readily available supply lowers the cost of natural gas. 

States with the lowest cost of natural gas include Texas, Oklahoma, Louisiana, and North Dakota; these states are major natural gas producers.  The state with the highest price of natural gas is Hawaii ($28.4 per thousand cubic feet). 

Water: factors that affect water costs include: local water supply infrastructure, treatment costs, state regulations, population density, proximity to water and abundancy, and energy costs.   

Vermont and Wisconsin have the lowest cost for water with average water costs at $18.  While West Virginia has the highest cost for water. 

Sewage: wastewater treatment costs have increased by about 4% each year for the past 12 years. Wastewater bills are usually higher than water bills because of the complexities of wastewater treatment. 

Illinois has the lowest average monthly sewer bill in the United States, at $74.97. This may be due to the state’s wastewater management systems or regulations.  

Waste management: the costs of industrial waste management and commercial garbage disposal can vary widely based on your business location and the way you manage your contracts. 

Connecticut is the top-ranked state for waste management, with Minnesota and Washington also ranking highly.  These states are known for their waste management policies, and many are also leaders in recycling and Pay-As-You-Throw programs. 

Telecommunication services: communications tax laws can be complex and vary by state, even for states that don’t have a statewide sales tax.  This is due to the many agencies, rates, fees, and surcharges involved.  

Delaware, Nevada, and Idaho are among the states with the lowest wireless taxes in the United States. 

• Energy efficiency: businesses can save money on energy bills by choosing a plan that’s tailored to their energy usage.  They can also consider using zone heating, insulating the business, and using programmable thermostats.  

• Payment: it is important to pay utility bills promptly, as the utility provider could shut off the service if the bill isn’t paid.  

• Credit: new businesses or businesses with poor credit may need to pay a deposit to set up electricity. Some providers may also allow a letter of good credit, recent utility bills, or a personal credit check.  

Review your businesses utilities before the New Year to ensure you are being cost and energy efficient.