For more than 30 years, MetroAction has stayed committed to our vision of community prosperity by lending more than $3 million to small start-up businesses, as well as to existing small businesses.

The past year has been an extremely successful one for us and the diverse businesses we have helped.  And though we have expanded our services and programs to include more opportunities than ever before, MetroAction is dedicated to furthering our mission of assisting small businesses so they may grow and prosper in our own region!

MetroAction would like to extend a special thank-you to Independent Graphics who has so graciously sponsored the printing of this year’s report!

For more information on MetroAction’s STEP loan and mentoring program, visit www.MetroAction.org or call (570) 341-0270.

We have some exciting news to share with the NEPA small business community!

At a press announcement in Scranton this morning, we introduced several new and expanded components to our existing financing programs:

STEP Loans are available from $250 to $2,500 to provide access to credit for credit challenged individuals who are committed to good credit management. This is especially terrific for those who have decided to become their own boss, starting their own companies, but who need a small “starter” loan to take the next step.

Small Business Loans go from $2,501 to $75,000 help entrepreneurs that do not meet bank criteria start and grow successful businesses. Whether it’s for equipment, renovations or working capital – these loans can help.

Small Business First Loans provide up to $200,000 or 50% of project costs for businesses located in Lackawanna County that meet eligibility criteria.

MetroAction does not just provide loans. They also provide business training and counseling to ensure long?term business success. All businesses involved in the STEP Loan program are required to attend the Smart Start counseling program that pairs business owners up with mentors from SCORE to help entrepreneurs start smart and grow strong.

The Small Business Institute is a comprehensive training program that provides practical, hands?on skills needed to develop, manage and grow a successful business.

To learn more about MetroAction’s programs and service, visit our website www.MetroAction.org.

Facts:

$18,000 Average loan size
89% Historic repayment rate
85% Clients still in business after two years
605 Average credit score

Pictured in the photo (from left to right) are: Front Row:  John Augustine, vice president, The Greater Wilkes-Barre Chamber of Business and Industry; Christina Hitchcock, business development administrator, MetroAction; Kristine Augustine, vice president, MetroAction.  Back Row: Austin Burke, president, The Greater Scranton Chamber of Commerce; Lori Reed, deputy director, City of Scranton Office of Economic and Community Development; Dee Kaplan, deputy secretary, Commonwealth of Pennsylvania Department of Economic and Community Development; Bob Maximowicz, business development specialist, U.S. Small Business Administration; Steve Lawrence, board member, MetroAction.

As you launch or expand a business, keeping track of the money, preparing tax returns and performing other financial tasks can quickly become a burden. If you need more time to do other things, it might make sense to turn over tax, accounting and other financial chores to outside specialists.

Choosing the right type of tax, accounting, bookkeeping or other financial help is an important decision. An outside accountant can be one of your most trusted business advisors and a key to your success. Although many business owners work with big national firms, most prefer to work with small independent firms or solo accounting professionals.

Accounting services differ from bookkeeping services, however. An accounting firm prepares financial statements and tax returns based on the numbers that you give them via your own in-house books. Bookkeeping services, if offered, will be extra. If you plan to hire your own bookkeeper, make sure the person you choose is qualified. One way is to use the “Bookkeepers Hiring Test” available free from the American Institute of Professional Bookkeepers at their Web site, www.aipb.org.

Before selecting a certified public accountant (CPA) or other financial pro, list the services you think you need, such as tax preparation, financial reports, balance sheets, invoicing, payroll services, general bookkeeping or someone to set up your books. Some firms may handle it all, or you may need to split the tasks. CPA Directory is a huge online listing of CPAs nationwide and can help you find an accountant in your area.  The Web site also offers helpful advice on hiring and working effectively with a CPA. Visit www.cpadirectory.com.

And don’t forget about Enrolled Agents. EAs are licensed by the Federal government to prepare tax returns. They have either worked for the IRS or have passed a rigorous IRS exam. They are savvy tax experts, but generally don’t have the degrees of CPAs and tend to charge less. Visit the National Association of Enrolled Agents Web site at www.naea.org.

Fees vary greatly among accountants, from $50 per hour to $300 or more. Some firms will provide a specified list of services for a flat monthly fee, and may provide less costly help for bookkeeping and other tasks that don’t require CPA-level training. If you are considering a larger accounting firm, find out which people you will be working with directly. Also try to match your general philosophy with a firm that is as conservative — or aggressive — as you are on tax matters.

For additional planning help for your small business, contact SCORE “Counselors to America’s Small Business.”  SCORE is a nonprofit organization of more than 10,500 volunteer business counselors who provide free, confidential business counseling and training workshops to small business owners.  Call (570) 851.1608 or visit www.scorescranton.org to contact the Greater Scranton Area SCORE Chapter.

Paying for an energy-efficiency upgrade doesn’t have to be an issue. While some upgrades require little or no funding, some do require a financial investment.  Why should you invest in making upgrades?  The savings from a well-planned efficiency upgrade can have a positive impact on your business’ cash flow and, even, pay for itself in the long run.

For smaller, inexpensive upgrade, such as upgrading your lighbulbs or replacing smaller applicances and equipment with energy efficient models, you may want to use your own funding to pay for the upgrade to keep your return on investment high.

For larger jobs, such as upgrading your HVAC or changing your electric meter, financing might be the only way to pay for the upgrade. And, that’s how MetroAction can help!  MetroAction’s small business loan programs can provide up to $35,000 to help small businesses finance energy efficiency upgrades.  In today’s economy, when bank financing is harder to come by, MetroAction has proven to be a valuable resource for helping start-up and growing small businesses obtain the financing they need to be competitive.

Pennsylvania’s Department of Environmental Protection also offers a number of grant and incentive programs for businesses that commit to improving energy efficiency.

While you can’t control the rate increases, you can control your business’ energy consumption and you can be strategic in planning your energy efficiency investments.

Small business owners often try to save money—especially in the early going—by using independent contractors instead of hiring full time employees. Using independent contractors, or “contract workers,” means the business doesn’t have to withhold taxes, pay Social Security or Medicare or meet numerous other employer responsibilities.

Many such arrangements, however, wilt under IRS scrutiny. And the strategy can backfire if someone later claims they should really have been treated, and paid, as an employee.

Deciding who can legitimately work as an independent contractor and who must be given employee status has become a difficult matter for small business owners. You can’t simply choose what’s best for you. The IRS and equivalent state agencies are strict on worker classification issues.

Remember that independent contractors work for themselves. They operate their own business. You are their client, not their employer. You don’t dictate their hours or control how they perform their work. In the eyes of most government agencies, a worker is an employee unless you can prove otherwise.

Contractors control when and where they work. Avoid setting a pattern of daily or weekly work hours dictated by your business. Also, independent contractors do not usually have a permanent or continuing relationship with the business and have time to pursue other clients. Plan to compensate contractors on a per-job basis, not weekly or monthly.

And since contractors are paid to complete a set task, they may bring in others to help, at their discretion and on their payroll. They also should use their own tools and technology and be responsible for their incremental expenses.

Contractors can’t be fired as long as they produce results that meet their contract specifications. Do not include them under any insurance or benefits coverage you have for employees. Independent contractors are subject to making a profit—or suffering a loss—based on their own skills and expertise. Always require an invoice before making payment.

Before you agree to an independent contractor relationship with anyone, make sure you understand what that means and carefully weigh the pros and cons. If you misclassify a worker, you could be liable for back employment taxes plus penalties.

Getting sound advice on management issues such as independent contractor status is vital for your small business. For help, contact  SCORE “Counselors to America’s Small Business.”  SCORE is a nonprofit organization of more than 10,500 volunteer business counselors who provide free, confidential business counseling and training workshops to small business owners.  Call (570) 851.1608 or visit www.scorescranton.org to contact the Greater Scranton Area SCORE Chapter.

Then the Disney Institute Leadership Excellence & People Management Training Program is your opportunity!

For full program details to “Experience the Business Behind the Magic” click here.

Come and discover the “business behind the magic.” Seating is LIMITED for this exceptional program. Contact Christina Hitchcock at (570) 342-7711 to reserve your spot!

REGISTER TODAY!

Owners of new and growing small businesses today know one thing for sure: conditions on the business playing field can change rapidly. The technology that seemed cutting edge last year is now outdated; or worse, obsolete. Buyer moods can swing dramatically, and marketing strategies are in constant flux.

Anticipating trends can be extremely valuable in keeping you current on everything from sales strategies and customer desires to technology tools and the general economy. As your business grows, change will be inevitable and small business owners should constantly look ahead and seek out ways to shake things up.  The more you test the winds of change, the better your chances of success down the road.

But how can you tell the difference between a fleeting fad and a true trend? Louis Patler, a market research guru for companies such as American Express and Dell, has spent decades tracking emerging trends and studying their impact on business. He says the key to successfully piloting a business in the years ahead will be embracing new ways of thinking.

For example, Patler says that truisms like “stick to what your business does best” are outmoded. If you want your business to grow, consider that past business traditions and processes might only hold you back. Trying new approaches is vital.

Not all customers are created equal. Some are more valuable and loyal than others, and those are the ones you should lavish the most attention on with special savings and service offers.  And don’t expect loyalty from employees. As American society becomes ever more mobile and labor shortages worsen, workers won’t stay on a job for more than three years.

Advances in technology will continue to radically change how small companies do business. You will need to keep up. Small business owners who know how to acquire and manage information will achieve the most success. Capturing and analyzing data about customer needs, wants, behavior and how they use your product or service will become increasingly critical.

For additional planning help for your small business, contact SCORE “Counselors to America’s Small Business.”  SCORE is a nonprofit organization of more than 10,500 volunteer business counselors who provide free, confidential business counseling and training workshops to small business owners.  Call (570) 851.1608 or visit www.scorescranton.org to contact the Greater Scranton Area SCORE Chapter.

E-commerce sales by small businesses are increasing rapidly and could double, triple or more during the next five years. Web sites are no longer a novelty; they are a necessity for small firms, solo operators and home businesses of almost any type.

Meanwhile, customers have become vastly more Internet savvy than they were just a few years ago.  They feel more comfortable buying online and they expect Web sites to be clear, crisp, informative and highly functional. Small businesses that don’t deliver higher levels of Web sophistication risk being left behind.

A good starting point is avoiding errors that often doom Web sites to mediocrity. It’s not a matter of making your site complicated. Today, the “less is more” axiom applies and often spells the difference between a Web site that delivers for your small business, and one that doesn’t.

Don’t neglect your site. If you want the Internet to help build your business, make your Web site a top priority in your daily operations. If your products, services, prices, location, hours, contact information and marketing messages change, make the updates immediately. Outdated information frustrates customers. Place your contact information in a prominent location. Many potential customers visit Web sites merely for basic contact details.

Flashing images, scrolling text and blinking buttons may have seemed clever and high-tech when first introduced, but now they are simply annoying. Dump them in favor of graphics that enhance your site usability. Avoid the temptation of cute bells and whistles. Make a fast-loading site a top priority.

And set up a system for tracking your site activity. Don’t be in the dark about what’s happening on your site. Simple and inexpensive Web analytic tools can point to areas that need improvement. Two top sources for Web analysis tools are WebTrends.com and SiteCatalyst.com. Visit the sites and check out the free trial offers.

To learn more about ecommerce for small business, contact SCORE “Counselors to America’s Small Business.”  SCORE is a nonprofit organization of more than 10,500 volunteer business counselors who provide free, confidential business counseling and training workshops to small business owners.  Call (570) 851.1608 or visit www.scorescranton.org to contact the Greater Scranton Area SCORE Chapter.

For a small business, taking the first steps into advertising can be an intimidating and mysterious process. Even though we see advertising everywhere, creating and using ads ourselves can seem alien and expensive. Understanding how the medium works and what it can and cannot do for a small business is tougher than it seems. And there is always uncertainty over results. 

Think of advertising as one element of the broader area of marketing. You recognize it in many forms, including magazines, newspapers, directories, online search engine ads, Web site banners, radio spots, TV, billboards, flyers, direct mail and others. Before you spend your hard-earned money on advertising, you’ll want to investigate what to realistically expect. Only then should you draw up a plan for moving ahead.

Ads can do the following:

• Attract new customers, prospects and leads.
• Encourage existing customers to spend more on your product or service.
• Build credibility, establish and maintain your “brand” or unique business identity, and enhance your reputation.
• Inform or remind customers and prospects of the benefits your business has to offer.
• Promote your business to customers, investors or others and slowly build sales.

But here’s what advertising probably cannot do:

• Create an instant customer base.
• Solve your cash flow or profit problems by producing an immediate sales windfall.
• Cure poor or indifferent customer service.
• Create benefits that don’t really exist or sell products and services that nobody wants.

In short, advertising won’t guarantee quick sales for your product or service by itself, but it will get you noticed, if you do it right. That means you must know, as precisely as possible, the demographics of your target audience and craft a precise message about your product or service that will touch them. You must give customers a compelling reason to call, visit your Web site or stop by your business.

Your ad must also stand out in some way. If it fails to grab your potential customers, they are not likely to respond. Frequency is also key. A single ad in one place won’t do much. Getting people to see your ads as often as possible in different places will deliver better results.

To learn more about advertising your small business, contact SCORE “Counselors to America’s Small Business.”  SCORE is a nonprofit organization of more than 10,500 volunteer business counselors who provide free, confidential business counseling and training workshops to small business owners.  Call (570) 851.1608 or visit www.scorescranton.org to contact the Greater Scranton Area SCORE Chapter.