Think Starting a Business in The US is Hard? Try Italy

If you think it’s hard to start a business here in the United States, you might just consider how hard people perceive it in other countries.  A whopping 96% of Italians say their government makes it hard to start a business. Greece, Spain and Portugal aren’t far behind â€" with 93%, 82% and 80% respectively saying their governments make it hard.

And what are some of the places where entrepreneurs think their government doesn’t give them such a hard time?  Try Malta, Sweden and Luxembourg.

This chart from a recent Gallup Poll says a lot about the perception of how regulations hurt small business and startups in Europe today:

Meanwhile, back in the United States, don’t pat yourselves on the back yet.  We Americans are not immune from our own perceptions about government interference and obstacles.

There’s a strong perception among small businesses that regulations hurt them.  Citing different Gallup polls from 2013, Professor Scott Shane pointed out how small business owners perceive regulations as being a problem. And business owners â€" the ones who actually have to comply with regulations - see regulations as more of a hindrance than the average citizen.

Shane wrote:

“Similarly, 72 percent of small business owners said that government regulations were a problem, while only 48 percent of American adults said so.  * * *  Taxes and regulation are problematic for a larger fraction of small business owners than Americans overall.”

With unemployment still high in Europe, you’d think entrepreneurship could be part of the answer.  Say the Gallup pollsters:

“While residents in most EU countries are more likely to feel the government makes it hard, rather than easy, to start a business, this perception is particularly troublesome to future growth in countries such as Greece and Spain, where unemployment is not expected to drop much lower than 26% this year. New jobs in these and several other European countries will largely need to come from the private sector after austerity measures forced some of the deepest public-sector job cuts in a generation.”

Many Europeans have a good opinion of entrepreneurs.  They believe entrepreneurs to be good role models, a Gallup Poll says.  Compare this chart to the one above:

And what about the United States?  According to the 2014 Edelman Trust Barometer, small businesses and family-owned businesses are trusted more than their larger counterparts or government in North America.   Family owned businesses are trusted by 85% and small and midsize businesses are trusted by 78%.

Bottom line: The majority of people in the United States and Europe view entrepreneurs and small businesses owners favorably.  Yet those same business owners and entrepreneurs believe their governments get in their way far too much and that regulations hurt small business and startups.

Italian Entrepreneur Photo via Shutterstock

Technology Does Not Have To Intimidate, If You Buy It With Thoughtful Planning, Says Brother Printer Exec

John Wandishin, VP of Marketing, Brother International discusses how small business owners don’t have to be intimidated by technology. He also advised to not buy technology without knowing what you want to do with technology. Don’t just by a tablet for the sake of buying i, for example,  but have a clear business purpose in mind for how it will help your business.

Watch our discussion here - https://www.youtube.com/watch?v=KpDiL3zlDO8 or below

Maybe you’re looking to update your email marketing software. Think of WHY you want to upgrade it and/or what the problem is that you want the new software to solve.

Could it be that you need training in using what you already have? Maybe it’s that what you have is not working well. Could it be that the vendor has upgraded software (or hardware) that might make what you have operate better?

I met with John on the occasion of the release of Brother’s 5th annual small business survey

Still Googling Your Contacts? Nimble Says Kiss That Goodbye

Nimble, the customer relationship management application that automatically connects social networks with other contact information, has just kicked it up a notch. The company claims you can quit Googling your contacts to find out more about them.

Nimble recently introduced a new feature called Smart Summary that company executives say accomplishes far beyond what most CRM applications can. The app uses social intelligence when compiling information about your most important contacts.

Smart Summary compiles this information on the fly assembling a user-friendly overview of important information about a contact. Now you can see at a glance what’s most important about all those to whom you are connected.

That includes details like Facebook and LinkedIn connections, Klout score, website URLs and more.

According to Alyson Stone, Director of Content Strategy at Nimble, what’s different about Smart Summary is that the profile is created automatically once you have identified a contact.

The information is pulled from publicly available sources and compiled by the Nimble app into a “dossier-type” format. While other applications may have fields where you can summarize information, you typically have to manually enter it. Or you get bits and pieces of information, without seeing a good overview of your contact. Not only does Nimble create the summary initially, Stone emphasizes, but it updates it daily to reflect changes.

What’s more, the information is “portable.” In an email conversation with Small Business Trends, Stone explained:

“…users can click the Share button next to the Title ‘Smart Summary’ and are then able to quickly email a Smart Summary dossier to anyone. This is aimed at making it easier for people to become known as ‘super connectors’ who help others meet.”

Unlike searching for available information about contacts on Google, Nimble uses social intelligence, drawing data from social profiles like LinkedIn, Facebook, Foursquare and other social sites.

From these, it creates a mini-profile including experience, education, shared connections, location and more.

In addition to basic background like work experience and education, Nimble’s Smart Summary also identifies shared influential topics with your contacts based on social media activity. For example, if one of your contacts posts regularly on topics like social media or content marketing, these topics might also be listed with his or her profile.

The app uses keywords in common between the you and your contacts to help emphasize common interests and ideas. The mini-profile sits at the right side of your contact screen while the app is open.

According to Stone, the problem that Nimble’s Smart Summary is designed to solve is the overwhelm from being involved in so many social networks. These networks provide so much information that it’s hard to keep it straight. Nimble, she says, aims to address this issue by organizing the important information and helping you step back to see the forest instead of just the trees. First, it takes away the grunt work of inputting all the information manually. Then it frees you of the need to update that information regularly.

But also, Stone says, the app allows you to prioritize the information and contacts you are most interested in keeping up with. This is handled through a “Mark as Important” button that organizes your contacts based on your priorities.

Stone explained:

“Nimble offers you the choice to mark any contact as “Important.” The effect of this action is that the system will present their updates and communications to you at the top of the results. Marking someone as important is a way of keeping the most important people front and center.”

Here’s a closer look at how Nimble’s Smart Summary works:

Nimble, based in Santa Monica, California, was founded in 2009 by Jon Ferrara, who previously founded GoldMine. Nimble has more than 60,000 customers. Well over half of those are small to medium sized businesses.

Like more and more leading apps these days, Nimble offers a freemium model with a free personal plan, and a paid business plan. The company also offers a no-credit card limited free trial. Nimble integrates with over 45 other applications. They include Constant Contact, Freshbooks, Google Contacts, AWeber, Evernote, MailChimp, GoToWebinar, Salesforce, QuickBooks, Magento and Xero.

Survive Tax Season With Shoeboxed

Tax season strikes certain weariness into small business owners. Some say its fear, but I think it is more likely that we dread the time sink of preparing our own taxes or working with a CPA or accountant.

Enter Shoeboxed - a receipt capture and tracking service that lets you improve how you approach expenses and how you organize receipts.

Shoeboxed is one of the market leaders in receipt and expense management for small business owners. The concept is you can snap a simple photo with your camera or smartphone and instantly upload the receipt to the web-based service. The goal is to get that receipt out of your “shoebox.” As you upload each receipt, the service asks you how to categorize the item and creates an expense report on the fly.

There’s so much to like with this service. It really is a time-saver and a valuable service. How many receipts do you have piled up on a desktop or in a drawer or envelope? I save all of mine until tax season and then manually tally them up. Silly really, when this could save me so much time, effort, and a bit of anxiety getting all my stuff in order each year. Paid plans start at $9.95 per month.

A few minutes after uploading my first receipt screenshot, I received an email confirming that it would be processed within one business day. Your receipts will process more quickly on the paid plans, I’m sure, but you receive 50 free receipts on the forever free plan if you can deal with the slight time lag.

If you upload a bunch of receipts, you will only receive one email saying “submission received.” If the receipt is invalid, not readable, or otherwise unacceptable, the email states that they will notify you separately, otherwise, assume all is well.

What I Really Like

• A confirmation email. Shoeboxed emails you almost immediately that your receipt is accepted and pending. The forever free account has a slight processing delay of up to one business day, but I found it was often less.
• When you change a category, the system asks you if you want to do this for all similar receipts, as in this example, for Starbucks receipts. It will go back and change existing ones, plus it will not allow you to choose that category again (if you mark that option) in the future.
• Bulk receipt envelopes. On the paid plans, you can simply mail Shoeboxed that stack of receipts you have been saving all year in what they refer to as a “Magic Envelope.” Pretty handy at this time of year, or a bit earlier.

What I Would Like to See:

• An end to the misleading signup process. Let me be very clear: Shoeboxed offers a valuable service, but in the process of signing up you may click the wrong button and move into a paid option. The landing page shows a super, super simple signup - enter your email for the “forever free” plan. But then it takes you to a full signup page where you have to navigate options and hunt for that “forever free” option that appears at the very bottom of the page. I’m sure you could opt out of the paid plan easily enough, but I prefer to see all options more clearly than one buried at the bottom.
• A direct link for Android mobile devices. The mobile link on the main site takes you to the iOS version in iTunes. You can find it by searching in Google Play and install it from there.

I mentioned Shoeboxed in a popular article titled, “7 Essential Productivity Tips - and The Tools to Achieve Them.” If you have been struggling with keeping up with your bookkeeping, this is a service you will definitely want to test.

After many years of trying to keep up - I’m now going to start actively using the service for my own financial record keeping.

Images: Shoeboxed

CERT UK finally launches to counter cyber threats

March 31, 2014

The UK government finally launched its first national computer emergency response team, CERT-UK, in London today.

Initially announced as part of the government's £650 million cyber security strategy in December 2012, CERT-UK has been hindered by numerous delays (it was initially set to launch in late 2013).

But that wait came to an end in Chatham House, London on Monday however as the group - which is headed up by Chris Gibson, the former director of e-Crime at Citigroup and global chair of the International Forum of Incident Response and Security Teams (First) - was announced as expected.

The meeting was overseen by Gibson and Cabinet Office minister Francis Maude, and while the launch coincided with that of the group's website and Twitter account, it turns out that CERT-UK has been running for two months at an undisclosed location in central London.

CERT-UK will be tasked with liaising with UK businesses and other national CERTS - including those in financial services and education - on cyber security issues, particularly those relating to national infrastructure. The UK government's Cyber Security Information Sharing Partnership (CISP) has been integrated as part of the group, and will interact with businesses to improve their cyber awareness, while CERT-UK is already said to have collaborated with the National Cyber Crime Unit (NCCU) and Janet Computer Security Incident Response Team (JCSIRT).

Cyber awareness seems to be an important crux of what CERT-UK is trying to achieve, both in the public and private sectors, and this is something that Gibson was keen to promote at the briefing earlier today.

"Cyber situational awareness is at the heart of what we'll do,” he said, before later adding that the group's ambition for awareness is “greater than our remit for incident handling.” The group's website promotes links for cyber security awareness schemes like Cyber Streetwise and The Internet Watch foundation, as well as industry bodies like CPNI, ICO and CREST.

The group certainly demonstrated how big cyber security is at the event, claiming that there are 28 DDoS attacks every hour in the country, while also citing one example of a London-based company that lost $800 million due to a cyber attack.

The launch has been to a generally positive reception, with many observers saying that it could be crucial to guarding the country's critical infrastructure. 

"This is a smart move from the government, and comes at an important time as the threat of an attack on national infrastructure grows,” said Rob Cotton, CEO at NCC Group.

"The key to effective cyber incident management is good communication, co-ordination and technical ability. As the speed and scale of cyber attacks grow it is essential for countries to provide a central co-ordination point and a greater focus on collaboration of threat intelligence sources. Ideally, this should happen at geo-local and sector levels.” 

Phil Cracknell, head of security and privacy services at Company 85, said that he too hoped CERT-UK would address critical infrastructure defences. “I would be interested to see what proactive initiatives to get elements of the critical national infrastructure up to a reasonable standard are being planned.”

Martin McKeay, senior security advocate at Akamai Technologies, was at the event and is encouraged by the government participation.

“It was unsaid but what was significant to me was that this (CERT-UK) seems to be getting serious backing from the UK government,” he told SCMagazineUK.com. “It sounds like a large number of people are starting to see that this is important and needs to be done.”

Like other commentators, McKeay noted the importance of protecting critical infrastructure, but said that the challenge is going to be to create awareness and show value.

“The first step is talking about it in person, building a baseline knowledge that you exist. After that, it's word of mouth.

“Secondly, it needs to show that it can provide additional value and help spread knowledge across businesses. It's an uphill battle…the first step in a long road.”

Verizon Introduces Single Security Suite for All Devices - Mobile and Desktop

A new survey reveals 88% of consumers around the world own more than one Web-enabled device. And 62% of U.S. consumers own more than three devices, another concludes.

In its recently released Digital Assets survey, online security company McAfee reveals there is also a lot of value on those devices. Globally, the average person has up to $35,000 in personal assets and information stored on these Web-enabled devices. This goes beyond personal data like your credit card information, login names and passwords. It also includes things like photos and entertainment files, too.

By now you’ve probably become attuned to the need for security on desktop and laptop computers. But that concern has apparently not spread to mobile devices where the threat may be just as great.

On the official McAfee Blog, company Online Security and Safety Evangelist Robert Siciliano explains:

“And while we have all these devices and have valuable assets on them, we don’t take enough precautions to protect our valuable assets. Nearly 15% of consumers globally don’t have comprehensive security on ANY of their devices and 20% are unfamiliar with cyber risks and security dangers.”

Small businesses in particular are increasingly targeted by cyber criminals seeking not only their information, but the information of their clients and customers.

McAfee (acquired by Intel in 2011) and wireless communications company Verizon are partnering to extend security to multiple devices, using a single application and central dashboard, called the Verizon Internet Security Suite Multi-Device program. The program is aimed at creating more security for both consumers and small businesses.

With the Verizon offerings, subscribers protect all of their PCs, laptops, Macs, and Android smartphones and tablets via one central management console.

Verizon customers can get Internet security for all their devices starting at $6.99 per month. Cloud backup and storage can also be added in. Small business owners, who use more data, might also want a bundled package including 50 or 150 GB of cloud storage also protected by McAfee. Those bundles start at $11.99 per month.

The service features automatic updates for all devices. Verizon says you’ll be able to monitor activity on all your devices from one desktop app, too. This feature would include the ability to lock certain apps when others are using your devices.

Image: Verizon

Why the IRS and BLS Disagree on Self-Employment Trends

Are more or fewer Americans engaged in self-employment than a decade ago? While you might think that this is a simple factual question, its answer depends on which federal government agency’s numbers you look at.

Internal Revenue Service (IRS) data indicates that self-employment is growing. The tax authority estimates that the number of self-employed Americans increased 26.4 percent between 2000 and 2011, the most recent year data is available.

By contrast, the Bureau of Labor Statistics (BLS) data indicates that self-employment is shrinking. The statistical agency responsible for measuring the condition of labor markets finds that the number of self-employed Americans decreased by 0.7 percent between 2000 and 2011.

Some might see these conflicting numbers as an illustration of Benjamin Disraeli’s famous observation that “there are three kinds of falsehood: Lies, damned lies, and statistics.” But I believe that the numbers can be reconciled if we understand the source of each.

The IRS measures self-employment by looking at whether or not a taxpayer claimed the self-employment deduction on his or her 1040. Because taxpayers must pay self-employment taxes if they have “net earnings of $400 or more as a self-employed person” - which the IRS defines as someone in business for him or herself. A self-employed person in the IRS data is anyone who has a non-trivial amount of self-employment income, regardless of their other income sources.

Take me, for example. I would be included among the self-employed in the IRS data because I earn more than $400 per year writing, even though my primary job is as a professor.

The BLS measures self-employment by conducting a monthly survey of approximately 60,000 households to identify the employment status of household members 16 years of age and older. To figure out each household member’s employment status, the BLS asks the respondent to identify whether each adult member of the household worked for pay or profit in the week of the survey.

If the household member had more than one job in the week, the respondent is asked to focus on the household member’s primary job, which is defined as the one on which they spent the most hours. Respondents are then asked (PDF) if the household member was “employed by the government, a private company, a nonprofit organization, or were they self-employed” to determine if they are self-employed.

If we return to me as the example, we can see why the IRS and BLS self-employment numbers differ. I would not be included among the self-employed in the BLS data. Because my full-time job is as a professor. I would be classified as wage employed, even though I earned more than $400 per year writing.

Understanding the source of the BLS and IRS self-employment numbers helps to tease out trends in self-employment. Fewer Americans appear to be making self-employment their full-time jobs than was the case a decade ago, but more of us are engaged in self-employment on the side.

That conclusion jibes with anecdotal evidence. Many observers have noted that rise of the Internet has made it easier for people to earn a little side income by buying and selling goods on eBay or by renting out rooms in their homes through sites like Airbnb.

Receiving Information Photo via Shutterstock

Anonymous Ukraine credit card leak is old data

March 31, 2014

Last week's reports of Anonymous Ukraine obtaining and leaking seven million credit card details may be erroneous, with the data having apparently been disclosed in older data breaches.

Risk Based Security revealed last Monday that an organisation claiming to be Anonymous Ukraine had posted the first million user credentials on Pastebin and laid claim to having information on “more than 800 million credit cards”.

These details were believed to have come from customers with card brands Visa, MasterCard, Discover and American Express, and included valid credit card numbers, banking routing numbers and full user names. 

At the time, researchers told SCMagazineUK.com that their investigation was continuing and that they were unable to identify where the card details had come from - although they suspected that they may have come from compromised ATMs or POS systems. 

When first investigating the data dump on Pastebin, the firm said that there were 6,064,823 new cards, with this breaking down as 668,279 American Express, 3,255,663 Visa, 1,778,749 MasterCard and 362,132 Discover.

However, the same analysts told us over the weekend that the leak looks increasingly likely to be old data from previously disclosed data breaches. 

Inga Goddijn, a researcher with Risk Based Security, told SCMagazineUK.com via email:  “Further analysis shows that, while the data appears to be legitimate, there are strong indications the data contained in the dump was previously disclosed.” 

The firm also updated its DataLossDB website, which tracks public data breaches, with the following statement: “Based on further analysis along with discussions with journalists, it appears that this credit card dump contains valid, but older card data that had been previously disclosed. To date, there is no solid evidence this represents a new breach. “ 

Goddijn stressed that the firm has been unable to unearth “where the data was previously disclosed” or who the group behind the attack is - although she admitted to hearing the same rumours - via numerous technology news websites - of it being a smear campaign by Russian opponents . “All I can say is the group is claiming an affiliation and seems to want to disrupt the financial system. Unless there are additional disclosures, it's anyone's guess.” 

These findings resulted in part out of the discovery that two of the Pastebin posts had been removed over the weekend, as well as the links to the .exe files - some 300GB in size - containing the credit card details. Malwarebytes analyst Chris Boyd told SC that he had noted that “cached versions seem to be dead this end too.”

Meanwhile, Lee J, a fellow researcher with Risk Based Security, told this writer that ‘very trusted sources' had told him that the leak was a ‘false flag' and said that his firm is now investigating the motives and links. 

He was, however, more reluctant to admit that it may not be Ukraine Anonymous. “Well anyone can be part of Anonymous so hard to say [it's] not Anonymous but [it] is fake old data but unsure to its source,” he told SCMagazineUK.com.

The theory of this being the work of Russian protesters certainly stands up on some grounds, with the Twitter account @Op_Ukraine - which originally broke the news of the data dump - having been suspended this weekend. The website had only been active since the initial disclosure on the breach. 

Furthermore, Anonymous usually publishes its news on its official social media accounts, while Brook Zimmatore, CEO of Massive PR - which provides cyber security intelligence to banks and other companies, told The Register that the leak was being discussed “almost exclusively” on Russian web forums.

Never Start With a Great Idea

That’s not that your product or service isn’t a great idea. But before you assume that concept in your head is solid gold, author and business writer Paul E. Brown has a suggestion for you.

Take a trip to the local closeout store and take a look at all the things someone else thought would be a good idea, too.

Brown says it’s a useful exercise to help entrepreneurs avoid the greatest pitfall when launching a new company, product or service.

In a recent Forbes post, Brown explains:

“Sure, some of the stuff was way over-priced to begin with.

And yes, some of the designs and colors left a lot to be desired.

But, invariably why the merchandise ends up being sold for literally pennies on the dollar is that their creators began by saying ‘wouldn’t it be cool if…’ instead of going and discovering ahead of time if there was a market need for what they were thinking about selling.”

Well, nothing, in theory, so long as a big enough consumer base agrees with you, says Jones.

There are all kinds of reasons they might not.

For example, nobody might care about your idea. Jones uses the example of an Agatha Christie themed set of pots and pans for people who like English mystery fiction and cooking. How many people are there who share those two particular passions? And how many of them will be really excited about your product?

There also may simply be no demand. Maybe there are a bunch of people who might buy into your idea. In this case, Jones uses the example of a “cable box cozy” for people who think an exposed satellite or cable box on your TV is ugly. But that doesn’t mean they’re going to run out and spend money on one.

People May not be willing to pay. Remember the Iridium satellite phone, says Jones. Yes, you can call anywhere, but those phone bills are murder.

So, aren’t there exceptions to some of these rules?

Think how indifferent Steve Jobs supposedly was to customer demand when developing products for Apple. But remember the strong demand for powerful personal computers, digital music players and portable devices. These markets were already present when Apple unveiled signature products like the Mac, the iPod, the iPhone and the iPad.

In the end, Jones insists, the best reason to create a product for an existing market is the time you’ll save.

He writes:

“Once you come up with your new idea you have to go out and find customers. If you start with a market need, you already have them.”

Looking for Android and Windows on One Device? Don’t Hold Your Breath

The initial news was exciting â€" “was” being the operative word.  Chinese phone maker Huawei had announced plans in late February to offer a smartphone with dual operating systems, i.e., both Windows and Android, on the same device, to the U.S. market.

For those who use Windows in business but love Android, a device that gives you a choice of operating systems seemed like a great idea.  Android is by far the most popular and widely used phone operating system. But Windows Phone may be more compatible with the rest of your business technology. That assumes you use a Windows operating system on your business laptop or desktop computers.

Huawei’s Chief Marketing Officer Shao Yang originally told Trusted Reviews that his company would release a combination Android/Windows Phone device in the U.S. this spring. Yang said:

“We are definitely using a multi OS strategy. We think the dual OS can be a new choice for the consumer.”

Well, scratch that bright idea. Huawei has now backed off those plans.  Huawei subsequently told Fierce Wireless that:

“. . .most of our products are based on Android OS, [and] at this stage there are no plans to launch a dual-OS smartphone in the near future.”

Huawei is not the only manufacturer backtracking on dual operating system plans.  Asus apparently abandoned plans to introduce a dual operating system laptop and tablet.  It originally announced its plans at the highly visible Consumer Electronics Show in Las Vegas in January.  But according to the Wall Street Journal:

“Facing pressure from Google and Microsoft, Taiwanese personal-computer maker Asustek Computer Inc. has indefinitely postponed plans to sell a high-profile device designed to simultaneously run both Android and Windows software, people familiar with the matter said.”

It’s not in the interests of either Google (maker of the Android operating system) or Microsoft (maker of Windows) to get too close together.  Each has more control and power by keeping the device operating systems separate.  By staying separate, Microsoft protects its prize operating system.  Google protects its dominant position in the mobile apps market.

Don’t look for these dual operating system devices to proliferate anytime soon.

In the case of Huawei, it has bigger issues related to the U.S. market.  Despite being the third-largest smartphone maker in the world, the brand is not well known in the United States.  It has been making a push for a larger U.S. presence.  The company recently introduced several new devices, some of which will eventually be available in the U.S.

But the recent cross-allegations of spying â€" that Huawei was spying on U.S. companies, and that the NSA was spying on Huawei â€" may throw a monkey wrench into Huawei’s U.S. marketing plans.

Choice Photo via Shutterstock

How the New Overtime Law Changes Will Affect Small Businesses

President Obama recently signed an executive order calling for new rules on overtime pay. Currently, salaried workers in executive, administrative and professional positions aren’t eligible for overtime pay if they make over $455 per week. The President suggested $600 or $640 as the new threshold - the current standards for New York and California.

Let’s put this in layman’s terms. There are many arguments for this new overtime law change. According to the White House, only 12% of salaried workers are currently legally required to receive overtime pay, and the threshold hasn’t been raised since the mid-1970′s. Additionally, following the economic downturn, company profits have bounced back, with profits of S&P 500 companies doubling since 2009. However, wages haven’t followed suit.

President Obama said:

“Overtime’s a pretty simple idea â€" if you have to work more you should get paid more. If you go above and beyond to help your employer and help the economy succeed, then you should share in your success.”

What About Small Businesses and the New Overtime Law?

Unfortunately, these new overtime law changes, if put into effect, will most likely disproportionately affect small businesses. While most large firms can absorb new regulatory costs, small businesses have less revenue to spread the costs across. As Marc Freedman, the Executive Director of Labor Law Policy at the U.S. Chamber of Commerce explained:

“Similar to minimum wage, these changes in overtime rules will fall most harshly on small and medium sized businesses.”

It is predicted that some small companies will see a significant increase in their payroll costs as lower-level employees working 50 or 60 hours a week become eligible for overtime.  In the current economic environment, many small businesses don’t have the available revenue to cover these additional costs. The overtime pay changes could also potentially devastate startups, which often depend on long hours and under-paid dedication from their employees in order to get off the ground.

This new overtime law change will also negatively impact many small business employees. The changes would endanger employee jobs (as many small business owners will be forced to cut back the number of workers they employ) while ignoring the many legitimate reasons why employees may work overtime even without extra pay - like getting experience, developing their skills, or positioning themselves for a promotion.

What Are Your Options?

While a proposed rule is not predicted to come out until the fall, small business owners should start thinking about how they might mitigate these costs now. Some companies may have the revenue to just pay for their newly eligible employees outright, but many small businesses don’t have that luxury. Those already under financial constraints may need to consider raising their prices or reducing their employee numbers.

There are also some other measures small businesses should consider to mitigate these possible regulatory costs. Instead of hiring full-time employees to provide a needed service, small businesses can save money by hiring contract workers or outside service providers. These entities are dictated by contract law rather than employment law, and so are not eligible for overtime or benefits. They can also dictate their own payment terms.

As Paul Christiansen explains in a recent article:

“The corporation is the magic strategy that can open up opportunity, freedom, flexibility and choice for both startups and their service providers.”

Small businesses owners should also consider investing in an automated time-tracking system. If the new overtime law is changed, it will be more important than ever to track how employees are spending their time in order to ensure that no unnecessary overtime hours are logged. A fully integrated system can also show small business owners which employees are profitable to the company, making any budget-induced staff cuts more straightforward.

If the new overtime law changes take effect in the coming year, many small businesses will face additional payroll costs. But with the proper preparations, these costs can be mitigated.

Obama Photo via Shutterstock

10 Apps to Assist with Your Small Business Taxes

Tax time is almost here. And as with almost anything else in your small business, there are apps designed to get you through it.

You can use some apps for filing your tax returns. Others can be used to keep you better organized throughout the year â€" by doing things like tracking your expenses.

We’ve identified 10 small business tax apps you may find useful as a small business or microbusiness owner, an entrepreneur, or a solopreneur.

FreshBooks

Many small business owners may need help with accounting and an organized accounting process can really prove beneficial at tax time. FreshBooks is one of several all-in-one accounting apps used for tracking expenses, producing invoices for your customers and tracking payments.

FreshBooks is available on Android and iOS devices. New users get a free 30-day trial. Monthly plans after the trial period start at $19.95 per month, according to the FreshBooks website.

TurboTax Home & Business

This is probably one of the most recognizable names on the list. TurboTax, from Intuit, offers an app for small business owners that costs $99.99. That price includes the cost of one e-file of a tax return.

The online app claims that using it allows you to identify and get the most money for your tax deductions, especially those specific to small businesses. You can also use it to create W2 and 1099 forms for your employees. Throughout the year, you can use this app to help track expenses, too. There is also a feature that accounts for value depreciation of your assets.

TaxCaster

Intuit also offers a companion app for your mobile device called TaxCaster. The app is designed to give you a glimpse at any possible tax return you can expect.

IRS2Go

This app comes directly from the Internal Revenue Service. The IRS2Go mobile app is available for both iOS and Android devices. The app is supposed to allow you to track your refund. It also provides you with tax prep information. And you can request tax return information and account transcripts through the app.

When the IRS receives your request through the app, they’ll send you the information you requested in the mail.

MoBu

This is a Windows app designed to run on desktops or mobile devices. The cost for the MoBu app is $6.99, but there is a free version with limited capabilities.

Like many of the apps on this list, MoBu uses charts and graphs to give a picture of your finances. Although MoBu is marketed toward personal finance, self-employed people can also use some of the features.  This is how a description on the Microsoft app store describes it:

“When other applications only offer you to enter and track your expenses and income, MoBu lets you in addition define expenditure and savings budgets, and fully analyze your financial wealth and simulate the future.”

Mint

This is a free app from Intuit Inc. that has the sole aim of tracking and organizing your expenses. Mint organizes your expenses to let you know where your money is being spent. It presents this information in easy-to-read charts and graphs.

Mint would be a good app for any entrepreneur keen on controlling expenses. Forecasting features allow you to get a glimpse at future expenses and savings.

inDinero

This app is designed for both desktop and mobile use. inDinero claims it can perform all your financial tasks, from your accounting to tax returns. The app uses graphs and charts on an online dashboard to present your business’ financial information.

inDinero offers three levels of paid service, based on the size of your business. It charges a flat fee. But not just any business can use this app. inDinero requires that you request an invite to use its services. It will review your application.

TaxACT

This popular tax software has online apps for small businesses filing their federal and state taxes. TaxACT says small business owners can file their 1065, 1120, 1120S and 1040 Schedule C returns using its app. A free trial has limited services but does allow you to file one federal return for free through e-file. Premium offerings start at $12.99 and include assistance with filing your business taxes.

Record keeping, or a lack thereof, could make tax season even more arduous on small business owners. Below are several mileage, receipt tracking apps you can use to accomplish this.

Expensify

This is a free app you can use on desktop or mobile. Expensify has a service designed specifically for businesses. This app allows you and your employees to track your expenses by taking photos of receipts. It also tracks employee mileage through GPS.

This app even allows you to reimburse employees for their expenses from inside Expensify. The app also integrates with some popular accounting software, which should come in handy at tax time.

iDonatedIt

If you’re a charitable person or have donated anything in the course of a year, use the iDonatedIt app to calculate the value of that donation. If you track your donations throughout the year using this app, accounting for them at tax time should be easier. It is available for both Android and iOS devices.

While some of these small business tax apps are free to use, others obviously require an up-front cost. But remember, as tax professional J.K. Lasser points out, the money you spend on a tax prep app like those in our list is tax deductible.

Using App Photo via Shutterstock

Be Great by Learning “What Great Brands Do”

There are many who think that if they hire a great graphic designer to create their logo and website, that they would have established a great brand; until reality sinks in. A brand is so much more than a logo or design element that visually represents your business. A brand is your story, what you ...

The post Be Great by Learning “What Great Brands Do” appeared first on Small Business Trends.

Be Great by Learning “What Great Brands Do”

March 30, 2014

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• Influencer Awards
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Another Group of Small Business Events and Awards to Check Out

We’re back with another weekly list of small business events, conferences, webinars, contests, competitions and awards. These are high quality events and opportunities designed specifically for small business teams and entrepreneurs. What are you waiting for? Sign up for one today!

To see a full list or to submit your own event, contest or award listing, visit the Small Business Events Calendar.

Featured Events, Contests and Awards

Rule Breaker Awards
March 31, 2014, Online

The RuleBreaker Awards will honor and celebrate those entrepreneurs who have succeeded by doing it their way. Some have created whole new industries; others have revolutionized industries that have existed for hundreds of years. Nominate yourself or another business. Valuable prize package, including lifetime phone service from Nextiva.com!

Google Hangout: Best Small Business Books
April 02, 2014, Online

Too much to read, too little time! Join the Book Review Team of Small Business Trends on a Google Hangout for a discussion about their picks for the best business books of 2013 and the trends and lessons small businesses can take away from them.

Small Business Book Awards 2014
April 11, 2014, Online

The Small Business Book Awards honor the best business books published in 2013, and book resources (such as cover design, copy editing and more). No fee required. Get the recognition your book or resource deserves. Nominate now through April 30, 2014!

Hashtag: #BizBookAwards

ICON14 by Infusionsoft
April 23, 2014, Phoenix, AZ

#ICON14 is the eighth annual conference for small business, hosted by Infusionsoft (previously called Infusioncon). Over 3,000 attendees expected. Confirmed speakers include Seth Godin, JJ Ramberg and Peter Shankman.

Hashtag: #ICON14
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smallbiztrends (Get an extra $100 off)

More Events

Speeding Up Sales
April 02, 2014, Online

Social Media Trends, Best Practices, and Compliance for Healthcare Professionals
April 03, 2014, Boston, MA

Danville Area Business and Culinary Showcase
April 03, 2014, Danville, CA

Wellness Programs; Understanding the Why, Knowing How and Making it Work
April 03, 2014, Online

Establish and Maintain an Effective Supplier Qualification Program
April 03, 2014, Online

SPREE 2014 - Specialty Retail Entrepreneur Expo & Conference
April 08, 2014, Las Vegas, NV

Tax Form 941 for 2014: All You Need to Know
April 08, 2014, Online

NYC Business & Entrepreneur Grade-A Networking Mixer
April 08, 2014, New York City, NY

LinkedIn for Government Contractors
April 08, 2014, Columbia, MD

Government Marketing Best Practices
April 08, 2014, Columbia, MD

HIPAA 101
April 08, 2014, Online

Web 2.0/Social Networking in the Government Market: What Works
April 09, 2014, McLean, VA

LinkedIn for Government Contractors
April 09, 2014, Columbia, MD

Digital Information Processing, E-Business and Cloud Computing
April 09, 2014, Dubai, UAE

Real Estate Secured Loans: The Various Facets of Personal Property Collateral
April 09, 2014, Online

WBDC-MN Procurement Meeting
April 09, 2014, Minneapolis, MN

Spring Networking Mixer (Cocktails & Conversations)
April 09, 2014, White Plains, NY

Financial Night Out: Mergers and Acquisition
April 09, 2014, Chicago, IL

International Conference on Computing Technology (ICCTIM2014)
April 10, 2014, Dubai, UAE

More Contests

This weekly listing of small business events, contests and awards is provided as a community service by Small Business Trends and SmallBizTechnology.

New In Our Community: Many Marketers May Lack Key Online Skills

Join us for another edition of the community news and information roundup. It’s our survey of some of the top small business blogs and online communities on the Web. Enjoy and tell us what you thought in the comments below.

Many Marketers Lack Basic Online Skills  (Datalicious)

Surprisingly, this survey by digital consulting firm Digital Chameleon found 92 percent of respondents lacked basic digital competencies. This included those who worked in mainstream media, for a brand or in an agency. The survey was taken in Australia where Digital Chameleon is based. Do you think the results would have been different in your community?

A Look at Website Building Tools for Business (FitSmallBusiness)

There are many ways to build a website for your business these days. And often, you do not need to rely on coding experience to do it. Here FitSmallBusiness editor-in-chief David Waring reviews Wix, Weebly, SquareSpace and WordPress to help you make up your mind.

Master the Art of the Facebook Contest (Scott’s Local Business Corner)

Contests on Facebook can be a very effective marketing tool. Here April Atwood shares some pointers about how you can create one successfully. Thanks to Scott’s Marketplace content marketing manager Shannon Willoby for sharing and adding some comments in the Bizsugar community.

Business Survival is About Being Adaptable (Franchise Acumen)

If you want to know the secret of longevity in any business, it’s fairly simple, write’s Mike Hall. Always be ready to adapt to change. As a small business owner or entrepreneur, sometimes it’s hard to change approaches that have worked in the past. But, in the end, those who don’t learn new skills or seek ways to be relevant as the market changes will be left behind.

A Look at Celebrity Endorsements to Grow a Business (The Brand Agent)

No, you may not have the budget to hire Michael Jordan to endorse your product or service. But there may be cheaper celebrities, even local celebrities that you could afford. The question is, like every other marketing tactic, whether celebrity endorsement will work for you. Here Bob Williams, CEO of Burns Entertainment & Sports Marketing, gives some advice for figuring out whether this approach is a good fit.

Make Your LinkedIn Profile All It Can Be (Simplicity)

Think of your LinkedIn profile as a sort of resume online. Does yours say all it should? Business coach Sarah Santacroce makes these suggestions for tweaking your profile. Don’t miss her additional tips for a more effective LinkedIn presence in the BizSugar comment section.

How to Create the Right Kind of Content (Susan J. Campbell)

Content marketing should be a huge part of your marketing strategy today. But as copywriter Susan J. Campbell explains, the quality of the content you use in your marketing campaign is also hugely important. Focus on providing readers with excellent information, updated regularly and use keywords and links judiciously for success.

Tips for Online Marketing with Your Business Blog (Tweak Your Biz)

If your business website includes a blog, there are many effective ways to use updates to promote your products, services and expertise. In this post, Marc Andre mentions some you may or may not have heard before. He also takes some time to talk shop with members of the BizSugar community.

The Importance of an Advertising Plan (SteamFeed)

When you create an advertising plan to grow your business, its important to have a goal in mind. Marketing consultant Randy Bowden suggests starting by determining what key performance indicators you will use to determine whether that goal has been achieved.

How People Learn About Your Brand (Seven Secrets of a Brand Champion)

It may surprise you to discover that, even today, the main way consumers learn about new brands isn’t by searching around on Google. And it isn’t by reading a customer review on a retail website either. While both are important means by which customers learn more about a product or service, this report shared by brand expert Michael Doyle may change your mind about how you market your business.

Help us make the community news and information roundup a better place to read about what’s new in small business online. Email us with your suggestions for coverage at sbtips@gmail.com. Or follow the lead of Shannon Willoby, Sarah Santacroce, Marc Andre and many more. Share your news on BizSugar.com. It’s our go-to place for finding the freshest and most authentic voices in the small business community.

Relaxing read via Shutterstock

12 Entrepreneurs Who Are Flourishing on Amazon

Amazon is becoming an increasingly popular place for entrepreneurs to reach consumers. At first, it was mainly authors who found success selling their work, but now there are varying types of small businesses finding success on the site.

Amazon is now giving entrepreneurs the opportunity to share their success stories. Below are 12 different types of small businesses that have experienced success with the eCommerce giant.

YogaRat

Wendell Morris was an Emmy-winning writer in Hollywood when he decided to start his own business. YogaRat is a retailer of yoga mats, bags, towels, and other yoga gear. An experienced yoga student, Morris launched YogaRat before leaving his writing job. But his Amazon sales grew, and YogaRat now has an eight-person staff and Morris claims to be happier than ever.

Porter Fox

Porter Fox is the author of the independently published book, Deep: The Story of Skiing and the Future of Snow. Without a big name publisher, many distributors wouldn’t stock the book without strong sales numbers. Amazon gave Fox the opportunity to reach consumers and made it possible to put the word out about his book.

Dreamfoam Bedding

John Merwin owned a chain of mattress retail stores in Arizona and Utah. But the recession was in full swing and Merwin knew that more and more customers were shopping online. So he began listing customizable products in the Amazon Marketplace to complement his retail locations.

Pike Place Fish Market

Seattle-based Pike Place Fish Market already had a local presence before the AmazonFresh delivery service launched in Seattle in 2007. Because of the service, the business now reaches even more customers who can’t get to the market or would rather shop for their food online.

Helen Bryan

Helen Bryan originally released her novel, War Brides, through a British publisher. But the book went out of print in 2010 after selling few copies. She wanted it to reach more consumers and eventually chose to re-release the book with Kindle Direct Publishing. She has also released other books on Amazon since.

HALO SleepSacks

Bill Schmid originally created the HALO SleepStack, a type of wearable swaddling blanket to help avoid SIDS (sudden infant death syndrome), as a way of honoring his daughter who died as an infant. He began selling the product on Amazon, and now creates several different varieties. He has a team of 23 employees with a business that continues to grow.

Mara Altman

Journalist Mara Altman originally worked with a literary agent when starting her career as an author. But when her first novel was rejected, she instead turned to Amazon’s Kindle Singles. It’s a platform that publishes journalism, memoirs, fiction and essays that are shorter than books but longer than magazine articles.

Toy Barn

Sandy and Doug Powell owned a local toy store in Eureka, Calif. But when the recession hit, they had to make some changes. They first tried setting up their own website to replace the brick-and-mortar store. But the couple found it easier to list products on Amazon instead. The store now makes more sales than they did at the retail location.

Andrew Kaufman

When TV journalist Andrew Kaufman couldn’t find a literary agent or publisher for his first novel, While the Savage Sleeps, he turned to Kindle Direct Publishing. The novel reached the number one spot for Kindle books in its genre, and Kaufman’s since released a second novel under KDP as well.

Clip-n-Seal

D.L. Byron invented a product to provide a tight seal for bags. He began just selling his product on Amazon. But now he also uses Fulfillment by Amazon to ship inventory and fulfill customer orders as well. He says this makes running his business as simple as possible.

Regina Sirois

Regina Sirois didn’t get much of a response when she sent her first young adult novel, On Little Wings, to literary agents. But she wanted a few copies for herself and to give to her daughter on her sixteenth birthday. So she ordered them on Amazon and uploaded a copy for Kindle users so that her friends could read it. About 85,000 Amazon customers bought it during the free period, and even more have purchased it since. Now, Sirois is working on her third novel.

Intova Sports

Joe Ganahl first started Intova Sports, a retailer of waterproof cameras, flashlights, and other equipment for divers and adventure seekers, near his home in Hawaii. But he soon found that there were a lot of added expenses to doing business in an isolated location like Hawaii. Once he was ready to expand beyond local retailers, he turned to Amazon and was able to reach customers around the world without relying on a large brand name.

“Roadside MBA” Packs Powerful Lessons for Small Business

“Roadside MBA” Packs Powerful Lessons for Small Business

Well, this is refreshing! Usually I’m reviewing books that take examples from big business and teach them as case studies or stories for small business.  But, this time, dear reader, the tables are turned. I just received a review copy of Roadside MBA: Back Road Lessons for Entrepreneurs, Executives and Small Business Owners by Michael Mazzeo, …

Content

Usefullness

Freshness

86

Summary

Small town small businesses serve as case studies for ten powerful lessons in business.

86

Well, this is refreshing!

Usually I’m reviewing books that take examples from big business and teach them as case studies or stories for small business.  But, this time, dear reader, the tables are turned.

I just received a review copy of Roadside MBA: Back Road Lessons for Entrepreneurs, Executives and Small Business Owners by Michael Mazzeo, Paul Oyer, and Scott Schaeffer and I have to say that I’m really enjoying these real-life small business case studies and I think you will, too.

The authors are a group of business professors who teach MBA students; Paul Oyer,  a professor at Stanford, Scott Schaefer, a professor at the University of Utah and Mike Mazzeo, a professor at Northwestern University.  These guys met at a conference in Boston.  But their book writing future was sealed on a trip to a shoe store while killing time before a flight.

They have taken a unique approach by going around the country and interviewing a variety of small business owners, collecting their stories and lessons, and pulling them together into this informative book.

Roadside MBA is divided into ten chapters with each focused on a common business theme.

Chapter 1: Scaling A Business

Chapter 2: Establishing Barriers To Entry

Chapter 3: Product Differentiation

Chapter 4: Setting Prices

Chapter 5: Managing Your Brand

Chapter 6: Negotiating Affectively

Chapter 7: Hiring

Chapter 8: Incentives for Employees

Chapter 9: Delegation

Chapter 10: Battling The Big Boys

Inside each theme they’ve pulled together stories from the more than forty small businesses they visited on their road trip.

Here are just a few of the lessons that you’ll find inside Roadside MBA:

• How to negotiate: The Deadhead owners of Eko Compost in the hippie town of Missoula, Montana who don’t negotiate recycling contracts until they know what the city’s next best options are.
• How to hire:  A windsock manufacturer who uses a reverse hiring strategy that focuses on discouraging the wrong applications and not just attracting the right ones.
• How to compete: See how a small bookstore succeeded against big box stores by focusing on what the big guys couldn’t do.

Because the businesses featured in Roadside MBA are small, you’ll find the way they create, implement and manage a variety of business strategies is inspiring and surprisingly doable.

Roadside MBA is a fun book to read and an even more practical book to put into practice.  As the authors say in the introduction:

“We learned far more about business strategy from our trip to the shoe store than we did at the conference.”

I think you might find yourself saying the same thing - you’ll get an MBAs worth of knowledge from Roadside MBA.

Tell Your Brands Story Online: Brooklyn Textile Company Succeeds In Story Telling, Not Selling

(Join the 3rd Wix Small Business Breakfast (April 2nd, 2014) as we eat and learn how small businesses can get more customers and develop deeper relationships through social media, blogs, web sites and more!)

Below is the video of last months 2nd)  Wix Small Business Breakfast, sponsored by Infusionsoft.

Paper No. 9‘s, Stephanie Benedetto shares how she’s leverage online marketing to BOOST her brand! Sit back and listen.

See the video below or here - https://www.youtube.com/watch?v=TqlSXAY4heU

Video: Plan for Success; Focus On Culture: @Concur Exec Advises Small Businesses

Elena Donio, head of Concur small business division speaks with Ramon Ray about Concur and Tripit (travel expense and travel management) and what it takes to have a successful business.

Two things that every successful business owner must incorporate are: plan for success and focus on corporate culture.

Check out the video here https://www.youtube.com/watch?v=CK0ddbNxCr0 or below.

Our Top Story This Week: A New SBA Administrator is Approved

It’s time again for the Small Business Trends news roundup. Our editorial team keeps you up to date with the news and information most critical for running your small business.

SBA

U.S. Senate appoints new SBA administrator. Appointed by the President in January, Maria Contreras-Sweet has finally been approved by the Senate. She brings with her experience from the banking sector where she helped found the ProAmérica Bank in Los Angeles with family and friends.

SBA backed loans are now online. A tech company called Better Finance is responsible. The company has launched a site called Smartbiz. With backing from Sacramento’s Golden Pacific Bank and the U.S. Small Business Administration, businesses need wait only days instead of months for approval.

SBA shares winners for Small Business Person of the Year. There are winners from all 50 states, the District of Columbia, Puerto Rico and Guam. A national winner will be chosen in mid-May during what is anticipated to be National Small Business Week. Stand by. Announcements for the event have not yet been made.

Online Photo and Video

Instagram hits 200 million users. Actually, there have been a lot of milestones for the photo sharing community over the last six months. Take the launch of Instagram’s first advertising effort, and the site’s growing importance to retailers, for example.

Vimeo has these Instagram and Vine alternatives. Video is a powerful online marketing and communications tool. Instagram and Vine certainly seem to be leading the pack. But, hold on. There do seem to be some other options you might consider.

You must see this. The video not only went viral in an incredibly short period of time, it also put a small fashion brand on the map. And it did all this without breaking the bank. Let’s see what small businesses can learn about creating similarly compelling content.

Social Media and Messaging

Twitter is playing favorites. Or that’s one way of looking at the new feature called “Fave People.” Much like Twitter’s list feature, it’s a way of cutting down on some of the noise. It’s only available in Twitter’s alpha app for now. So it remains to be seen whether it will be popular enough with testers to be rolled out to everyone.

Do you know how to Tango? In a world full of messaging apps, Tango is the latest to make big  news. What it adds to the mix is video, voice messaging and a dash of social engagement. The Tango community is growing fast. Is this a place your business should have a presence?

Marketing

See how this Wichita dealership turned things around. A union demonstration is probably not on most small business owners’ lists of things they want to see outside their door. But this local business decided to do the best they could with the hand they were dealt. The result was a priceless piece of marketing.

The Hipster Tax Crisis boost your business. Well, maybe the crisis itself won’t. (There really isn’t one.) But certainly the very clever online video campaign H&R Block has created to update its image will inspire you, no matter what your marketing budget.

Operations

J & J Staffing shares secrets of success. The key is to really work hard for the people who walk into your door, says Sean E. Malady, Vice President of Sales and Marketing. When you succeed, the marketing takes care of itself.

Small online publishers should be watching the competition. Business Insider and BuzzFeed are forces to be reckoned with, certainly. But are they really the models that smaller publisher’s should emulate? Maybe not, insists one writer.

Honesty is important in business. If you don’t believe that, just look at how bad things can get otherwise. It’s not just a question of maintaining a good reputation. Being less than honest can commit you to a set of fictional expectations for your business that are hard to maintain. It will lead to unfulfilled expectations and loss of productivity, too.

Dell acquires StatSoft. The acquisition of the analytics company seems to keep Dell on course to becoming more than a hardware brand. Dell offers software and services, too. But where is the company’s dedication to its small business customers?

Opinion

Does the Post Office belong in the banking business? Small Business Trends Founder and Publisher Anita Campbell looks at some of the viewpoints on an issue that is still just speculation. But one of the concerns is certainly whether it would involve the organization spreading itself too thin.

Tech

Android Wear will soon power smartwatches and other wearable devices. But it also provides a new potential tool for entrepreneurs improving on their productivity. And it will open a whole new world of opportunities for small developers creating apps for the devices powered by Google’s new operating system.

Reading Photo via Shutterstock

Research: Malicious Apps Can Crash Android Phones, Cause Data Loss

What if someone deleted all the data on your smartphone?

If you have an Android phone, that may be more of a reality than just a rhetorical question.

In fact, recent research suggests there may be some serious vulnerabilities in the Android operating system. Tests of these vulnerabilities revealed phones with Android operating systems could be put into an endless loop of system crashes. Researchers speculate it could also culminate in all the data on your phone being erased.

According to researchers, attacks can be launched from seemingly innocent apps on the Google Play Store. It is not clear whether any current attacks of this kind are underway, however. Hackers could simply use a hidden file triggered after a certain amount of time or as soon as the smartphone is powered on. The file could cause a denial-of-service (DOS) attack  which would make the operating system permanently unavailable.

On TrendMicro’s Security Intelligence Blog, mobile threat analyst Veo Zhang explains:

“We believe that this vulnerability may be used by cybercriminals to do some substantial damage on Android smartphones and tablets. The device is stuck in an endless reboot loop, or a bootloop. This can render the device unusable, which some may consider “bricking” it.”

If this happens on your smartphone and these hidden files are launched, one of two scenarios can happen, based on the research conducted:

• You’ll be forced to constantly relaunch the same app. And that app is likely corrupted so the hidden file will open after a certain amount of time and force it to restart.
• The corrupted app you’ve launched will trigger a never-ending cycle of full system restarts. If this happens, the only recourse is to perform a factory reset of the device, Zhang explains. A lot of times, that means all data will be lost.

Devices running Androids 2.3, 4.2.2, and 4.3 are known to be vulnerable to the attack, ArsTechnica reports.

But what’s worse, Bouncer, the cloud-based scanner Google uses to detect suspicious apps in the Google Play store is also vulnerable to the attack. Researcher and hacker Ibrahim Balic reports on his blog he was also able to create a denial of service on Google Play. He said he did this simply by uploading an app with the appropriate trigger file to the site.

Phone Crashed Photo via Shutterstock

Freaky Accidents

When it comes to accidents, American workers have a sense of invincibility. But accidents happen all the time, and no one can predict when or whom they’ll strike.

Whether it’s the NASCAR driver who broke his foot playing Frisbee or the pitcher who missed a game because he strained his wrist playing Guitar Hero, accidents can be just as financially disabling as physically disabling.

Luckily, employers can help protect their workers’ financial security by offering group or individual disability insurance and it doesn’t have to cost their companies a dime. Not only are employers protecting their employees’ financial health but they are also protecting their business interests by earning the trust of their workers.

You may not be able to plan for accidents, but you can protect yourself in case they happen.

Image: via Aflac

Businesses still don\'t value CISOs, survey finds

March 28, 2014

The continuing rift between IT security professionals and 'the business' has been highlighted by a new study that shows many organisations still attach little value to cyber security - even though they know the threat is growing.

The Turnkey Consulting survey finds that one in six IT security pros believe their organisation sees security merely as “an unnecessary expense only undertaken to keep auditors happy”. And only about one-third (37.5 per cent) of organisations view IT security as “an essential business practice that can deliver ROI” - down from 43.9 per cent the year before.

This is despite the fact that over two-thirds of enterprises (71.8 per cent) recognise that the IT security risks they face from external sources have increased.

Richard Hunt, managing director of Turnkey Consulting, said: “It is concerning to see that IT security is still not perceived to be an integral part of the business.”

But CISO representatives say they are “not surprised” by the findings.

Tim Holman, president of the ISSA UK user group, told SCMagazineUK.com via email: “It's not surprising to hear any IT professional think this way, where there is often a lack of top-down cyber security support in the organisations they represent. What's more alarming is that given the increased reality of external threats, business owners and boards are still reluctant to take cyber security seriously, and often see it as a grudge purchase.”

Holman insisted: “Good CISOs aren't cheap, but worth every penny in articulating cyber security risks at a board level. The techies at the coalface are rarely seen as influential, but that doesn't mean businesses should ignore them, as they perform a valuable and obvious front-line defence against cyber attacks.”

But he qualified this, saying that while “businesses need to start listening to the professionals they employ, professionals also need to start talking to the businesses, and in language they understand”.

Amar Singh, chair of the Security Advisory Group of industry body ISACA UK and interim CISO, agreed that security professionals need to work harder to get their message across.

He told SCMagazineUK.com: “Part of the problem with IT and ‘the business' has always been the inability of the IT professional to properly relate to and explain the business imperative. The more you call it ‘IT security' the less the business imperative - ‘IT security' remains an IT problem.”

Richard Hunt at Turnkey focused on how CISOs can change the perception of security

“It is important that change management activities are undertaken to ensure employees throughout the organisation understand their individual responsibilities when it comes to IT security,” he told SCMagazineUK.com.

 “An element of basic awareness training should be undertaken in any company which should be followed up with regular reminders. The form these reminders take will vary, as a newsletter will be well-read in one company where an intranet site is more effective in another.”

The survey, ‘A Risk Perspective on 2014', also found that 38.2 per cent of the organisations responding had experienced a fraud incident, up from 31.3 per cent the previous year. Likewise, 30 per cent had experienced a data loss that affected business operations, up from 17.1 per cent.

The researchers questioned 55 IT professionals, all SAP software users involved in security and controls activities.

Stealthy Crigent malware infects Word and Excel files

March 28, 2014

A new malware family that could "creep under the radar" of many system administrators has been found infecting Microsoft Word and Excel files.

The ‘Crigent/Power Worm' virus, revealed by Trend Micro in a 27 March blog, uses several new techniques to conceal itself - including working solely through the Windows PowerShell scripting tool rather than creating or including executable code.

Blog author Alvin John Nieto, a threat response engineer with TrendLabs, said this means: “IT administrators that are normally on the lookout for malicious binaries may overlook this, as malware using this technique is not particularly common.”

Security expert Kevin O'Reilly, senior consultant at UK-based Context Information Security, confirmed that Crigent “may well fly under the radar of a lot of system admins who are used to watching out for executable malware”.

TrendLabs says Crigent hides in infected Word or Excel documents which can be dropped by other malware, or users may unknowingly download it via malicious links or websites.

Crigent then sends information about the user's server - including IT address, location and user account privilege level - and waits for commands from the attacker running it.

Asked about Crigent's purpose, the company told SCMagazineUK.com via email: “Cyber criminals often use gathered user information as a way of doing analytics that could aid current or future attacks. In this particular case, it should be noted that the malware takes note of the MS Office applications and versionsâ€"which is crucial information for the routines to be successful or to push through.”

TrendLabs first saw the malware on 8 March and is still analysing which countries it is targeting. Asked about its source, the company said: “We're not able to make a formal attribution.”

Crigent works by downloading two components which it immediately disguises by changing their name and hiding where they were sourced (the Tor network and Polipo personal web cache/proxy) in DNS records. The malware masquerades as legitimate files hosted in the well-known Dropbox and Microsoft OneDrive cloud sites.

Nieto explained: ““To someone examining the network traffic without looking at the actual files, all that would have been apparent was a pair of DNS queries to Google's public DNS servers, and a file downloaded from two well-known cloud services. Neither would be found particularly suspicious.”

And he warned: “Aside from compromising the security of the infected system, Crigent also infects documents - which may contain critical information - and may render them useless due to their new ‘format'. Enterprises and individual users may lose crucial data.”

In his analysis of the malware, Kevin O'Reilly told SCMagazineUK.com via email that Crigent “breathes new life” into Microsoft Office macro viruses which have become “something of a rarity”. He explained: “Crigent makes use of PowerShell as well as an interesting trick with DNS records to bring this threat right up to the present day.”

O'Reilly also confirmed that the Windows-based malware family doesn't currently threaten users who may be running run MS Office on Android devices - or the just-announced iPad version. He said: “Its dependence on PowerShell limits it to modern Windows systems, a saving grace for newer versions of Office on mobile platforms.”

“This will come as little consolation to the majority who use Office on Windows and potentially face data loss with the malware's crude attempts to convert documents to older formats to enable its spread, deleting the original documents in its wake.”

And TrendLabs global threats communication manager, Christopher Budd, told SCMagazineUK.com that the problem is exclusive to Windows systems.

“Crigent only targets Windows-based versions of Word and Excel, given that Powershell is exclusive to Windows. But this doesn't mean that newer versions of MS Office are truly ‘safe' from threats. Cyber-criminals are constantly creating/refining malware to include new targetsâ€"which could very well be the newer versions of MS Office.”

To protect themselves from Crigent, Nieto advises: “There are several ways to detect its presence within a network. For starters, the presence of Polipo and Tor within an internal network should be suspicious.” He said network administrators should also consider blocking Tor traffic to deter Crigent and other threats.

Nieto added: “It's worth noting that the file extensions that Crigent uses to save infected files as - .DOC and .XLS - are no longer the default file types. The versions of Office from Office 2007 onward use, by default, the .DOCX and .XLSX file extensions. The presence of large numbers of new files using older formats may be a possible sign of the presence of Crigent.”