Small Business

“I’m

Small Business

Mark Cuban, Founder, Cost Plus Drugs

Amy Bertolino, Senior Product Manager, Pitney Bowes

Small Businesses

Surge as Workers Opt To Become Their Own Bosses

Over the past three years, more than 16 million Americans have decided to join the small business community.

This explosive surge in small business entrepreneurship has resulted in over 33 million small businesses, representing 99.9% of all types of businesses nationwide, according to the Small Business Administration.

Small businesses are a growing economic and financial powerhouse, and as a result, they are playing even more vital roles in fueling local economies, underpinning our national economy, and helping support a strong middle class in America.

A voice for the community

Since 1981, the National Association for the Self-Employed (NASE) has provided a national voice to entrepreneurs. As a membership-based association, NASE is entirely comprised of small business owners, solopreneurs, gig economy workers, and freelancers from all industries. Our primary mission is to support the success of small businesses through many critical areas necessary for creating an environment for success.

We support the journey of self-employment through a variety of member benefits from competitive dependent scholarships to a growing growth grant program. We also provide direct business and tax advice through our Ask The Experts service and our NASE Minute video series.

At a time when the small business community is surging and breaking barriers, we are here to support everyone’s journey. Our goal is to ensure a robust small business community and to support each small business owner by helping them grow, save, and thrive.

Written by Keith Hall, President and CEO, National Association for the Self-Employed (NASE)

Kevin O’Leary on the Value of Authenticity and Data

“Shark Tank” investor Kevin O’Leary (AKA Mr. Wonderful) discusses the post-pandemic key to success and how data collection in any form is the most valuable tool for small businesses.

What are some key qualities that distinguish successful small businesses from those that are struggling right now?

Before the pandemic, only 10% of sales were through the website of a company, so it was never profitable for them. That’s all changed today. Now, most of these companies are 50% direct-to-consumer. Businesses figured out how to sell directly to their customer base. The difference between a successful company and one that’s struggling is that the successful ones have figured out customer acquisition cost and return on ad spend.

What were some pivotal moments or lessons that influenced your growth as a business professional?

Direct-to-customer ended up being the game changer for me when I realized that, in a nutshell, data is the new oil. If you know the preferences of your customers — when they buy, where they buy, flavor, size, etc. — it changes your world.

You know, the first time I really saw this happen was almost 10 years ago with a company that I partially own called Wicked Good Cupcakes. There are probably 250,000 kitchens making commercial cupcakes as we speak. You can buy a cupcake on every bodega corner everywhere in America. How did Wicked Good Cupcakes become such a behemoth? Because Dani and Tracy, the mother-daughter team, went to social media and told the story of their family

journey of creating this business — the ups, the downs, the daily trials and tribulations. They talked about the development of flavors, and what worked and what didn’t. The arguments between a daughter and her mother resonated so much with people that they connected with this family going through the hell of building a business, and they became advocates for them. They only wanted to buy cupcakes from Tracy and Dani. They formed a community. I’ve never seen anything like it.

Before there was any AI at all, they started to detect their customer preferences. They had all this data, and they would push offers based on the preferences of these people. The response rates were insane. They were just off the charts. That was the one that taught me that direct customer relations are everything. Now, everybody tries to do this, but Wicked Good Cupcakes was authentic. They were honest. They constantly communicated with their customers and made them part of their community, and it was crazy successful. That is a story that I’ll tell for the rest of my life as an entrepreneur. You can do what

Protecting Your Small Business From Severe Weather Threats

Unexpected events like hurricanes, tornadoes, floods, and wildfires can impact operations in your community and hinder your business growth. Learn steps to protect your business.

It is estimated that 27% of small businesses are one disaster away from shutting down, according to the MetLife and U.S. Chamber of Commerce Small Business Index. As natural disasters increase in frequency and intensity, taking proactive measures can determine whether a small business stays open or closes forever after a disaster strikes.

When it comes to crisis planning, most small business owners say they are only somewhat prepared to deal with threats like natural disasters, another pandemic occurring, or cybersecurity attacks, and less than half have formalized plans for future threats.

Small business owners can take steps to prepare for a potential crisis before it happens. According to the Small Business Index, 62% of small business owners are contributing to rainy-day funds to prepare for potential threats. Other actions like installing surveillance precautions to protect against theft, training staff on cybersecurity measures, and taking out insurance in case of a natural disaster are common.

Financial fallbacks

There are federal disaster loans and resources available after disaster strikes. Knowing what resources exist and how to apply can help speed up recovery time. In addition, the U.S. Chamber of Commerce Foundation offers education and on-demand resources to help employers prepare for disasters and

resume the important work of serving their communities as quickly as possible after a crisis.

For example, the U.S. Chamber Foundation’s Small Business Readiness for Resiliency Program (R4R), created with FedEx and supported by Allstate and American Express, prepares small business owners for disasters and offers $5,000 to those prepared businesses after a federal disaster is declared in their region. As one grant recipient shared, “This grant has been so helpful with repairing the broken windows to the storefront and paying my employees with the business being closed for two weeks due to the weather.”

The Resilience in a Box program, developed in partnership with The UPS Foundation, educates business leaders on disaster preparedness and resilience. Businesses can access a checklist and other disaster-planning tips.

Additionally, the U.S. Chamber Foundation’s Disaster Help Desk provides one-on-one expert assistance to small business owners before, during, and after a disaster. Business owners can contact the Help Desk by dialing 1-888-MY-BIZ-HELP or visiting uschamberfoundation.org for more info.

Written by Rob Glenn, Vice President, Global Resilience, U.S. Chamber of Commerce Foundation

How Wildfire Preparedness Helped Save a Maui Small Business

INTERVIEW WITH Kevin Schenk Owner, Helewai Eco Tours and Seeding the Future

Kevin Schenk owns Helewai Eco Tours, which educates visitors about Maui’s watersheds and native species, and Seeding the Future, which gives visitors a hands-on way to help plant and propagate native plant species. Following the devasting wildfires in Maui last year, Schenk received a $5,000 Readiness for Resiliency Program grant to help his business recover.

How did the wildfires impact your businesses?

I lost a lot of business. The whole island was empty of tourists, and for the most part, they still haven’t come back.

There’s a bunch of misinformation going around that hotels are full of displaced residents from the fire and that we don’t want tourists to come, but that’s not true. There’s a lot of room for people to come back to Maui — and we want them!

What advice do you have for other small businesses looking to improve their disaster preparedness?

Understand what resources are out there before a disaster happens, like the R4R program and federal disaster grants. Know your finances and have them in order. It’s hard if you’re trying to grow and scale a small business, but don’t spend money you don’t have if you can help it.

Lastly, if disaster strikes, be ready to spring into action and help your community. The day after the fire, I used my vans to take people out to the west side to help hand out basic necessities.

Lessons from Mark Cuban: Building Trust and Transparency in Business

Entrepreneur and “Shark Tank” star Mark Cuban shares his tips for standing out in a competitive marketplace as a small business owner.

Can you share a bit about your journey in entrepreneurship and what inspired you to start your first business?

My first real company was called Microsolutions. We were a PC and software systems integrator. We connected your PCs into a network and wrote software to improve your office productivity.

I started the company out of necessity. I had just gotten fired from my software job. I was broke living with five other guys in a three-bedroom apartment. I decided I was a lousy employee and pushed to find a customer to help me get started. I found one, and the rest was history.

Over the next seven years, we grew to 80 employees and $35 million in sales. We sold to H&R Block after seven years. I was 30 and took a well-deserved vacation that I hadn’t taken in seven years.

What are the technologies that new small business owners should invest in to better run their businesses?

It really depends on the company. You have to do your homework to determine what mix of mobile and cloud-based apps works best for your company. Particularly with so much changing with AI large language models like ChatGPT and Gemini, it’s worth it to take your time, do your homework, and find the right solution that you can afford.

Can you share a memorable experience or lesson from your journey in entrepreneurship that has shaped your approach to business?

I’m a big believer in solution selling. You have to put yourself in the shoes of the customer. I can’t tell you how many times and how many hours I spent trying to learn as much as I could about the pharmaceutical industry for Cost Plus Drugs. I dug in and realized that the missing ingredient wasn’t technology. What was missing was trust. No one trusts anyone in the drug business.

With Cost Plus Drugs, we decided to be the first truly transparent company in the industry. When you go to costplusdrugs.com and put in the name of your medication, we first show you our cost — our actual cost. Then we show you that our markup is only 15%. Next, we show you our actual pharmacy and shipping costs. The total is what you pay, and more often than not, it’s the cheapest price available. It may even be cheaper than your insurance copay or coinsurance.

The low markups showed customers that we were much cheaper than others. Being far less expensive was an incentive for customers to tell their peers how much they saved with Cost Plus Drugs. The lesson learned is that when your customers trust you, they tell others. As a result, Cost Plus Dugs has never spent a nickel on marketing.

In this day and age, we trust fewer and fewer businesses and organizations. Transparency and honesty are the keys to keeping your customers happy.

How can small business owners leverage their strengths and unique selling points to stand out in a competitive market? As above, all businesses need the trust of their customers to stand apart. In this day and age, we trust fewer and fewer businesses and organizations. Transparency and honesty are the keys to keeping your customers happy.

What motivates you to continue supporting and investing in small businesses?

The transparency led customers to trust us.

I love helping startups. It’s the whole reason I do “Shark Tank.” I’m still a huge believer in the American dream. I want to see more and more entrepreneurs succeed!

Providing Shipping Solutions in a Changing Business Climate

When it comes to assisting small business owners and decision-makers with their mail and parcel needs, PitneyShip delivers.

For office managers and shipping personnel, determining correct postage and package weights can be tedious. Add to that the countless trips to the post office, and the frustration builds.

“Getting packages out into the mail can be very time-consuming and cumbersome for small business owners,” explained Amy Bertolino, Pitney Bowes senior product manager.

How it works

According to Bertolino, the shipping platform offers practical solutions to help small businesses succeed without sacrificing quality.

“PitneyShip allows users to set up carrier pickup from USPS, FedEx, or UPS in just a few clicks,” she said, adding that the pre-negotiated, discounted rates users get from USPS and UPS save them significant dollars off retail shipping label rates.

“In addition, address validation ensures the package is being sent to a deliverable address, avoiding return packages and wasted postage fees,” Bertolino said. “Plus, a scheduled carrier pickup saves time.”

Shipping made simple

PitneyShip software allows customers to compare prices and delivery services across carriers, in addition to buying and printing shipping labels and postage, scheduling pickups, and tracking packages.

“It’s simple and easy to use with the PitneyShip Cube, to print professional shipping labels with an integrated scale to accurately weigh packages,” Bertolino said. “All users have access to the companion mobile application, which allows users to track packages or create labels when they are away from their desk.”

A changing landscape

Mailing has greatly decreased for businesses in the digital age, while shipping has increased significantly, especially during and after the COVID-19 pandemic. And according to Pitney Bowes’ most recent Parcel Shipping Index, there were even significant shifts in carrier dynamics and consumer behaviors in 2023.

Of the four largest carriers (USPS, Amazon Logistics, UPS, and FedEx), only Amazon Logistics grew volumes year-over-year, and

by a whopping 15.7%. One year after passing FedEx in parcel volumes, Amazon Logistics has exceeded UPS, and is gaining momentum on market leader USPS.

A name you can trust

With more than 100 years of expertise in innovation, Pitney Bowes is a resource business owners can turn to with confidence.

The global shipping and mailing company works with more than 90% of Fortune 500 companies, and recognizes not all customers require the same volume of shipping.

“PitneyShip is backed by Pitney Bowes, a trusted name in the shipping and mailing industry with decades of experience,” Bertolino noted. “Whether a business is just starting out or experiencing rapid growth, PitneyShip offers scalable shipping solutions to meet their evolving needs. From shipping a few packages a week to managing high-volume orders, the platform can accommodate businesses of all sizes.”

Written by Cindy Riley

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Amy Bertolino Senior Product Manager, Pitney Bowes

5 Things to Consider When Starting a Business

Business is booming. But, if you’re ready to become one of the millions of business owners in the United States, go in with a plan and know the wealth of resources at your fingertips.

1. Lay the foundation

The Small Business Administration’s Office of Entrepreneurial Development aims to help more people have the opportunity to live the American dream. That dream often begins with the basics of deciding the best legal structure to operate your business; ensuring you have the right licenses and permits at local, state, and federal levels; and making sure that you have adequate amounts and types of insurance (and possibly bonding) to protect you and your venture from liability.

Once you have decided the legal structure of your business, it’s time to move on to your business plan.

2. Build a business model

Business plans come in all shapes and sizes, but one thing is clear: Business owners who methodically plan — and plan in a way that they are able to change course quickly if things don’t go well — are much more likely to succeed. A tried and true comprehensive business plan, which takes you through the process of conducting market research, analyzing competitors, developing financial projections, etc., is the path most traveled for business owners. Alternatively, a new approach used by many tech-based businesses (one that is spreading to Main Street ventures) is the use of a business model canvas, which is a tool that provokes

the entrepreneur to produce a minimally viable product rooted in insight developed from talking to potential customers. No matter which business plan you go with, always remember that planning makes kings.

3. Determine viability

One of your biggest hurdles in the early stages of your business, especially during the first year, is to validate that you have a viable business model. A key tool to determine viability is a break-even analysis, which is available on the Small Business Administration’s website. Additionally, you can find help walking through the analysis at one of several community resource centers around the country, such as SCORE, a network of volunteer mentors who provide expert assistance; the Small Business Development Center (SBDC), offices usually run by universities or community colleges that offer free business counseling and training; or the Women’s Business Center (WBC), a center that offers services designed for the unique obstacles faced by women entrepreneurs. Do a break-even analysis as early as possible and update it regularly in your first year of operation.

4. Calculate capital needs

Additionally, startups often fail to understand their full capital needs. This can result in

the entrepreneur running up personal debt as opposed to business debt. There are a variety of financing options available, so the entrepreneur should understand the various funding options available before running up personal debt.

SCORE, SBDCs, and WBCs offer free advice to help entrepreneurs make well-informed decisions on financing their businesses.

5. Revisit your roadmap

Business ownership is a journey, and the first year of operating a venture is full of challenges, roadblocks, and the potential need to change course. Regularly visiting your roadmap in the first year and making key course corrections based on how the business is doing is of utmost importance.

The Small Business Administration (SBA) wants to ensure small business owners are aware of the counseling and training resources, and other technical assistance provided for free or a low cost to business owners. SBA’s hope is that more people will have the confidence, skills, and resources they need to succeed as small business owners, and we can continue to revitalize a spirit of entrepreneurship in our country.

Written by The U.S. Small Business Administration (SBA)