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Duggan “Little” Regulations Can Cause “Big” Problems for Small Businesses

October 4th, 2018 Comments off


DiugganLittleRegulatoinsCanCauseBigProblemsForSmallBusinessDailyBusinessNewsMHProNewsNFIB

It’s not new.  But it is an important point, one that the Manufactured Housing Association for Regulatory Reform (MHARR) has made for decades.

 

This time, it is the National Federation of Independent Business (NFIB) President Juanita Duggan who has said that “little” regulations can cause “big” problems for small businesses.

JuanitaDugganPresidentCEONationalFederationIndependentBusinessNFIBpostedDailyBusinessNewsMHProNewsIn a release to the Daily Business News on MHProNews, Duggan said, “I’ve heard consistently that business is booming, and that’s often followed up with something along the lines of, “every little thing that comes out of Washington is a problem,”” said the NFIB statement.

Manufactured home industry pros have several points they should keep in mind, especially with the midterms just 32½ days away.

  • MHARR has pointed out that the problems with HUD have historically been not just the bureaucracy, but also the contractor that HUD has used for years.
  • When NFIB, which reportedly has hundreds of manufactured housing firms as members, talks about small business impact, that has a direct and indirect impact on manufactured housing sellers, communities, producers, lenders, suppliers and others. Small to mid-sized businesses employ more Americans than large firms. Translated, the workers and shop owners who can be manufactured home customers are often tied to small businesses.
  • Per the Huffington Post in 2011, “large businesses only employ about 38 percent of the private sector workforce while small businesses employ 53 percent of the workforce.”
  • A more recent report in April 2017 by NYSSCPA slices that into small, medium and large businesses, this way. “At this point, 39.2 percentwere employed at either a large or very large company, while 26.5 percent worked at mid-sized companies and 34.3 percent worked at small companies.”

NAMCostForComplianceDailyBusinessNewsMHProNews

 

NFIB on WOTUS Rule

The NFIB blasted the Obama-era Waters of the United States (WOTUS) rule, which dramatically and harmfully impacted small businesses.  NFIB sued, and won, but a judge reversed that ruling for almost 2 dozen states.

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The [President Trump] executive order provided some relief for small business owners until a federal judge issued a ruling recently that put the onerous Rule back in place for 22 states. In response, we are asking a federal district court to block the Rule throughout the entire country—to bring relief for our members nationwide,” said NFIB.

The good news is that not everything coming out of D.C. these days is a problem for small business,” said NFIB, which touted their support on Capital Hill for tax cuts. “Following our instrumental role that led to the inclusion of the small business pass-through deduction in the Tax Cuts and Jobs Act, feedback from members has been enormously positive.  Small businesses are realizing true savings and are investing that money back into their businesses through hiring, pay increases, and job training. They’re investing back into their community through equipment purchases and expansion.”

While the overall economy is “roaring” in the view of many economists and experts, manufactured housing is still operating at historic lows. As a special report planned for tomorrow will reveal, the Manufactured Housing Institute (MHI) in a recent message to members is apparently pushing for a bill that is arguably contrary to the interests of independents.  As one source at their recent meeting said, “MHI’s [SVP] Lesli Gooch took time to explain to members some of their latest positions.  But when their policies are closely examined, they routinely benefit their largest members, and harm their smaller businesses in the industry.”

NFIB is pushing for pro-business conservatives in the upcoming midterms, so that the momentum since the 2016 election is continued. It should be noted that NFIB encourages members in specialized fields, like manufactured housing, to join forces with an association that is industry specific, such as MHARR.

Record Shattered on SBO, Yields Growth, Profits, More Says Juanita Duggan’s Group

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Related Reports:

Manufactured Home Production Rises Again in August, 2018 HUD Code Data

FHFA Requests Input on Proposed Modifications to GSEs’ “Duty to Serve Underserved Markets” Plans

Fed Programs “ACCESS TO CAPITAL” for Small Businesses, including Manufactured Housing

May 23rd, 2018 Comments off

FedProgramsAccestoCapitalSmallBusinessIncludingManufacturedHOusing

The Small Business Administration (SBA) was created to help independent business level the playing field in their access to capital markets.

 

While a relatively small number of businesses tend to dominate various sectors of the manufactured housing industry, the vast majority of operations in retail, communities, production, installations, service, and transportation are small businesses.

Nationally, congressional data provided to the Daily Business News says: Small businesses continue to face significant hurdles when it comes to accessing capital. With large companies frequently raising capital through debt and equity markets, small businesses regularly finance their ventures with commercial bank borrowing.  However, despite improving economic conditions in recent years, levels of bank lending to small businesses remain stationary.  With the approximately 29 million small businesses in the nation accounting for two out of every three new private sector jobs, the inability to access capital is preventing the engines of the economy from expanding. Communities across the country rely heavily on the products, services, and jobs created by main street businesses.  Capital is critical to growing jobs, communities, and the economy.”

With capital options limited, small businesses, startups, and entrepreneurs are turning toward the United States Small Business Administration (SBA) to finance their dreams,” the House Small Business Committee tells the Daily Business News.The SBA offers a number of financing programs designed to offer creditworthy businesses the ability to obtain capital.”

 

 

Among the information that the House Small Business Committee shared about SBA lending programs, are the following.

 

7(a) Loan Program

SBA’s flagship program is the 7(a) Loan Program, which provides creditworthy small firms that cannot obtain credit elsewhere the opportunity to access capital from private lenders.  SBA does not offer direct lending to small businesses; rather, SBA guarantees the repayment of loans issued by lenders for general business purposes.

 

CDC/504 Loan Program

SBA’s second largest loan program is the CDC/504 Loan Program, which provides long-term and fixed-rate financing provided by a combination of private and government guarantee support to assist with the acquisition of major fixed assets, such as real estate or machinery or equipment purchases that expand or update small businesses.  To be eligible for the loan program, the project must meet a job creation or job retention requirement or meet specific community development or public policy goals.

 

Microloan Program

To bridge the gap for small dollar borrowers, the SBA offers the Microloan Program, which works with nonprofit lending intermediaries to make small dollar loans of $50,000 or less.

 

Small Business Investment Company (SBIC) Program

To increase the amount of private equity flowing to small businesses, the SBA offers the SBIC program, where private equity capital is utilized to invest in small businesses.

So, in addition to the reforms pending the signature of President Trump on the now passed Economic Growth, Regulatory Relief and Consumer Protection Act” (S. 2155), there are other options that industry professionals who may have trouble accessing through normal banking channels could consider tapping.  The SBA is one of those options. ##  (News, analysis, and commentary.)

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SoheylaKovachManufacturedHomeLivingNewsManufacturedHousingIndustryDailyBusinessNewsMHProNews-Submitted by Soheyla Kovach to the Daily Business News for MHProNews.com.
Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

 

The Real Reasons Why Small Businesses Fail?

August 15th, 2017 Comments off
WhySmallBusinessesFailFeatureCreditPixabayDailyBusinessNews

Featured image credits, MHProNews/Pixabay.

Small businesses are the heart of America.  So says an infographic from InsuranceQuotes shared by Visual Capitalist. 

The Daily Business News routinely seeks to share interesting resources, reports and data.  So readers have noted our referencing the Visual Captialist before.

But fact-checking data is a key part of all good journalism. The research for this Daily Business News item revealed that at least this particular Visual Capitalist report clearly had a flaw.

They incorrectly stated that 99.7 percent of all businesses in the United States are small businesses.

See screen capture below for the actual figure, which is reportedly 90%.

90PercentBusinessesAreSmallBusinessesCreditGoogleDailyBusinessNews

Google search results showing 90% of U.S. businesses are small businesses. Credit, Google.

To be considered a small business the company can have no more than 100 employees.  Many of the 28.8 million small businesses in the U.S. have far fewer than that.

Most manufactured housing industry businesses would be considered a “small business” by that definition.

Improvements for Small Business

Per InsuranceQuotes, for the first time in years, there are more new businesses than there are ones closing their doors.  The same pattern of growth is evident in manufactured housing too, as the reports linked from the pictures below reflect.

BreakingGroundScotbiltfactoryMillenGAPostedDailyBusinessNewsMHProNews

Original photo credit, Augusta Chronicle. Text and collage credit, MHProNews.com.

This is positive economic news and good for job seekers. But the graphic further below are points to ponder for prudently proceeding when starting a new business venture, no matter what scale it is.

CarolRowlesEdmondResidentKOCO5TVManufacturedHousingIndustryDailyBusinessNewsMHProNews

A local Edmond, OK resident complaining about how schools are already too crowded, and that she opposes an already advancing manufactured home community development.

No one should go into a business thinking or expecting that it will fail – but if you are aware of the reasons that most small businesses fail, research suggests that you have a better chance at success.

New business owners should also keep in mind that not all businesses fail right away.  The data reflects the first year or two are the hardest to get through.  But according to the infographic from Visual Capitalist, business failures continue on to the decade plus mark.  Montgomery Wards or Kodak are examples of once giant firms that have since bit the dust.

HowManySmallBusinessesFailCreditsVisualCapitalistDailyBusinessNews

Small businesses don’t always fail in the first two years. Credits, VisualCapitalist, InsuranceQuotes

How this Affects Manufactured Housing Professionals like You

Whether you are the owner of a small business, or work for someone who is, these statistics are instructive.

While the manufactured housing industry is more than 40 years old, most of the businesses in the industry aren’t.

40AnniversaryManufacturedHomes-SchultTrailerHouse-SpartanMobileHome-SunshineHomes-ManufacturedHomeLivingNewsVideo-

Manufactured housing has now turned 41, but the report linked above is still very useful for the general public.

Among the dozens of reasons that a business can fail, the top reasons are per the sources shown as follows.

TopReasonsSmallBusinessesFailCreditsVisualCapitalistDailyBusinessnews

Top reasons small businesses fail. Credits, VisualCapitalist, InsuranceQuotes

The main reasons that most businesses fail are financial – two out of the top three reasons revolve around cash flow and funding for the business.

It’s simple logic – you have to make money to stay in business.  There’s no way around that.

However, the third reason – no market need for the products or services – does not apply to the manufactured housing industry.

There is a substantial need for more affordable housing, as the Daily Business News has often reported.  Recent articles that bring attention to issues like the rising price of rent and markets where homes for sale are far overvalued are just two examples.

HowManyRentersHowHighAreRentsDailyBusinessNewsPixabayManufacturedHousingIndustryProNews

How to Avoid Becoming a Negative Failed Business Statistic

The other main reasons that businesses fail, according to InsuranceQuotes, are because there is too much competition and they are pushed out. Or more often, because they don’t have the right team.

There is definitely competition in the manufactured housing industry.

I think one of the challenges we have as an industry is that there is not enough positive news about manufactured housing to counter the negative,” said Darren Krolewski, Executive Vice President MHVillage/DataComp, in response to blog post by Manufactured Home Community sector maverick, Frank Rolfe.

CreditsBattleshipMissouriWikiCommons-MHILogoMHI-FrankRolfeMHU-CollageCreditMHProNews

Images on MHProNews are routinely used under fair use guidelines, as is the case with the images in the collage above.

However, having the right team in place is also a very important factor in the long-term survival of any business.

The data suggests some ways to help find and keep great employees, including –

  • offering flexible and customizable benefits,
  • collaborative projects both in and out of the office,
  • and finding out where your current employees work to target people who are in or have experiences with those same companies and fields of expertise.
FailureRateaChartCreditsVisualCapitalistDailyBusinessNews

Failure rate of small businesses. Credit, VisualCapitalist

While these strategies may not guarantee you success, understanding why businesses fail will give your small business a better chance of keeping up in any industry.  This is especially true of an industry with so much potential for growth as the manufactured housing industry has to offer. # #

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JuliaGranowiczManufacturedHomeLivingNewsMHProNews-comSubmitted by Julia Granowicz to Daily Business News for MHProNews.

 

Taxes Rise on Manufactured and Modular Homes

June 14th, 2013 Comments off

MHProNews has learned from charlotteobserver the North Carolina state senate has approved a tax reform plan on second reading with the third and final reading—and likely approval– set for Tue., June 18. The Republican-dominated senate bill includes a tax hike for factory-built homes. Under the new measure the sales tax on manufactured homes would rise from 2 percent with a $300 cap to 4.75 percent with no cap. For modular homes the increase would go from 2.5 percent to 4.75%. Democrats contend this will hurt small businesses. The measure will move to the House for reconciliation with its bill after the final vote.

(Photo credit: thetimesnews–refurbished manufactured home in Burlington, NC)

Jobs Market Improving Modestly but Steadily

March 7th, 2013 Comments off

CNNMoney says ADP reports the private sector added 198,000 jobs in Feb., much more than the 150,000 economists were expecting, but well short of the 300,000 needed to fully stimulate the economy. Small businesses with under 50 employees added 77,000 workers, medium-sized businesses added 65,000, and large businesses with 500 or more workers added 57,000 personnel. 21,000 jobs were added to the construction roster, the sixth straight month of gains in that sector, which, as MHProNews has learned, is generally a good sign for the housing industry. However, furloughs from the sequestration cuts may begin a flurry of unemployment claims.

(Photo credit: Jeff Beiermann/the world herald)

Small Biz Stats

January 3rd, 2013 Comments off

EnhancedOnlineNews reports Intuit, Inc., provider of business and financial management solutions for small and mid-sized businesses, says small business employment increased 0.12 percent in 2012, while small business revenue fell 1.2 percent from Jan. to Nov. Based on Intuit’s data retrieved from its Online Payroll and Online Quickbooks programs, small business employment increased by 15,000 in Dec., equivalent to a 1.1 percent monthly increase annually; average monthly compensation rose 0.5 percent, or $13, on a seasonally-adjusted basis; increase in monthly hours at work rose 0.08 percent, about five minutes. Nov. marked the ninth consecutive month of revenue decline, but the loss is becoming less than earlier in 2012. Small business employees worked an average of 24.8 hours per week which earned them $2,702 in Dec., up .05 from Nov. South Carolina and Utah gained the most employees in Dec., while Michigan and Kansas had the largest declines. As MHProNews has learned, the data is based on approximately 100,000 small businesses.

(Image credit: Wikipedia–small bills)

NAR’s Yun says Progress in America has Stopped

August 19th, 2011 Comments off

Lawrence_Yun,_NAR_Chief_Economist,_RealtorRealtor provided a commentary by Lawrence Yun, the National Association of Realtors (NAR) respected chief economist. Yun stated that U.S. GDP is still below 2007 levels, even though we have 10 million more in the “workable age of 16 and over.” Yun said, “In short, it seems like “’Progress in America” has stopped.” He continued, “Aside from the lack of enthusiasm among large companies, one major reason for the economic struggle is that small businesses – the entrepreneurial heart of America – cannot find funds either to establish themselves or to keep going.” Yun explains that home equity is a source for many business start ups or expansions. That equity stands at, “$6.1 trillion versus $13 trillion in 2006 according to Flow of Funds data from the Federal Reserve. The Census Bureau reports that there are 74 million homeowners. So on average, the average equity per homeowner in 2011 is $82,000, down from the $170,000 in 2006.” Yun explains that median homeowner net worth is $190,000 compared to $4000 the median net worth of a renter household, according to the Census Bureau. Economic recovery thus largely depends on housing price recovery, and any moves by the federal government that hamper that recovery – such as removing the mortgage interest deduction – or advances the home value can impact the economy significantly.

(photo credit: Realtor)