The National Federation of Independent Business (NFIB) has filed an amicus brief in the case of Ryan, LLC v. Federal Trade Commission (FTC) at the U.S. District Court for the Northern District of Texas. The brief supports a challenge to the FTC’s final rule banning noncompete agreements, which was issued in April 2024. The NFIB argues that the FTC lacks the authority FTC lacks the authority to enforce such a ban.

Beth Milito, Executive Director of NFIB’s Small Business Legal Center, criticized the rule:

“The FTC’s final rule on non-competes is a textbook example of arbitrary rulemaking. The final rule leaves small businesses with vague conditions that make it difficult for owners to correctly comply. The FTC’s unelected bureaucrats continue to misrepresent the needs of small businesses and the impact the Commission’s flawed policies will have on Main Street. Our amicus corrects the record. We are hopeful that the Court will reject the FTC’s final rule.”

The NFIB’s brief presents two main arguments against the FTC’s rule:

1. Flawed Cost-Benefit Analysis: The brief asserts that the FTC based the final rule on a seriously flawed cost-benefit analysis, which misrepresents the economic impact on small businesses.
2. Arbitrary and Capricious Reasoning: The brief argues that the FTC’s reasoning is fallacious and internally inconsistent, making the rule arbitrary and capricious.

The NFIB filed the brief with support from several business associations, including:

• National Retail Federation
• International Franchise Association
• Associated Builders and Contractors
• American Hotel & Lodging Association
• National Association of Wholesale Distributors
• Independent Electrical Contractors
• Consumer Technology Association
• Home Care Association
• Restaurant Law Center
• U.S. Council for International Business

The NFIB’s legal challenge to the FTC’s ban on noncompete agreements underscores the ongoing tension between regulatory bodies and small business interests. By filing the amicus brief, the NFIB aims to protect small businesses from what it views as overreach by the FTC.

Image: Depositphotos

This article, "Small Businesses Take Legal Action Against FTC Ban on Noncompete Agreements" was first published on Small Business Trends

Kabbage Inc., now operating as KServicing, has agreed to settle allegations that it defrauded the Paycheck Protection Program (PPP). The company, currently in bankruptcy proceedings, will resolve claims of submitting false loan forgiveness, guarantees, and processing fee claims to the Small Business Administration (SBA).

The Justice Department announced that Kabbage submitted thousands of false claims to the SBA, violating the False Claims Act (FCA). Kabbage, now known as KServicing Wind Down Corp., filed for Chapter 11 bankruptcy in October 2022. The U.S. will receive a general unsecured claim in the bankruptcy proceedings as part of the settlement.

The PPP was created in March 2020 under the CARES Act to help small businesses survive the economic impact of the COVID-19 pandemic. The SBA administered the program, which allowed private lenders to approve loans for eligible businesses. These loans could be forgiven if used for payroll and other approved expenses. Lenders like Kabbage were required to verify payroll costs and comply with Bank Secrecy Act/Anti-Money Laundering (BSA/AML) requirements.

Kabbage is accused of inflating PPP loan amounts, causing the SBA to guarantee and forgive loans beyond eligible amounts. KServicing Wind Down Corp. admitted to several misconducts, including:

1. Double-counting state and local taxes.
2. Failing to exclude compensation over $100,000 per employee.
3. Miscalculating employer payments for leave and severance.

Despite knowing about these errors since April 2020, Kabbage continued to disburse incorrect loans.

Kabbage allegedly removed underwriting steps from its procedures to process more PPP loan applications and maximize fees. The company purportedly set substandard fraud check thresholds and relied on inadequate automated tools. Kabbage also allegedly discouraged fraud reviewers from requesting borrower information and submitted thousands of fraudulent or suspicious loan applications.

The government will receive an unsubordinated, general unsecured claim of up to $120 million. The exact recovery amount depends on the assets available in the bankruptcy estate. Kabbage will also receive a $12.5 million credit for payments returned to the SBA during the investigation.

Principal Deputy Assistant Attorney General Brian M. Boynton emphasized the commitment to holding lenders accountable for PPP misuse. Acting U.S. Attorney Joshua S. Levy criticized Kabbage for prioritizing profit over safeguarding taxpayer funds. U.S. Attorney Damien M. Diggs underscored the importance of compliance with PPP requirements.

Image: Depositphotos

This article, "Kabbage Inc. Settles Allegations of PPP Fraud" was first published on Small Business Trends

Do you want to know how to start a subscription business? If you’re exploring subscription box business ideas and you’re curious about how to start a business in this niche, keep reading for 17 simple steps to get your own business off the ground.

Starting a subscription-based business can be a lucrative venture for aspiring entrepreneurs seeking a source of recurring revenue. It provides steady income and fosters customer loyalty.

While this guide isn’t exhaustive, it will provide you with an initial roadmap to understand the key elements involved in launching a subscription-based model. For more detailed resources and additional support, we also offer extensive resources and articles that can assist you further as you establish your business.

How to Start a Subscription Business in 17 Simple Steps

In today’s market, subscription business models offer an exciting opportunity to build a steady, reliable revenue stream.

With our step-by-step guide to starting subscription businesses, you’ll be ready to launch your small business from conceptualization to execution.

1. Come Up with a Unique Niche for Your Subscription Service

Identifying a distinct niche is critical when you enter the competitive subscription market.

Successful subscription business ideas often target underserved segments, such as eco-friendly skincare or niche hobbies; there are tons of creative business ideas within this industry. A unique angle will help differentiate you from the competition, attracting new customers who are specifically looking for what you provide.

2. Know Your Customer

Understanding your target market is essential. Define your ideal customers and tailor your marketing and product selections to their preferences and needs.

Knowing your audience will help not only curate items they love but also craft messages that resonate with it, ensuring a higher conversion rate.

3. Source Your Products

The products you choose should align with your brand’s niche and appeal to your target audience.

Establish relationships with suppliers who can provide high-quality, full-sized and sample-sized items. This variety can increase the perceived value of your subscription box, making it more enticing to active subscribers.

4. Source Your Shipping Materials

Selecting the right packaging is crucial for protecting your products and providing a memorable unboxing experience.

Opt for eco-friendly and cost-effective materials and consider bulk purchasing to reduce costs. The right packaging reinforces your brand’s values and enhances customer satisfaction.

5. Set Your Price

Appropriately pricing your subscription is vital for success. Your monthly fee should reflect the value of the products included, be competitive with similar offerings in the market, and ensure profitability.

Take into account your production costs, competitor prices, and overall market demand to set a price that attracts potential customers and retains each existing customer.

6. Design Your Boxes

The design of your subscription boxes should not be overlooked.

Effective packaging is both aesthetic and functional, ensuring that products are secure and attractively presented. It enhances the customer experience and can turn first-time buyers into repeat business.

7. Find the Best Shipping Rate

Minimize shipping costs without compromising on speed and reliability.

Compare rates and services from various carriers and negotiate bulk shipping discounts. Effective shipping strategies can significantly impact both your profit margins and customer satisfaction.

8. Plan Your Fulfillment Process

Decide whether to handle order fulfillment in-house or through a third party.

Each option has its benefits and challenges, and your choice should depend on your business’s size, scalability, and resource allocation. Proper planning can streamline operations and improve efficiency.

9. Launch Your Website

Your website is the primary tool for customer interaction and transactions.

Ensure it is user-friendly, visually appealing, and optimized for sales. Include clear information about your products, subscription details, and easy navigation to encourage purchases.

10. Find More Places to Sell Subscriptions

Expanding your sales and marketing channels can significantly increase your reach.

Beyond your main website, consider platforms like Etsy, Amazon subscription box, or specialized subscription box marketplaces. Each platform can help tap into new audiences and increase your sales volume.

11. Build a Buzz Around Your New Business

Effective marketing is crucial for a successful launch. Utilize social media, collaborate with influencers, and offer pre-launch discounts to generate excitement and anticipation.

These strategies can attract customers and sustain interest in your subscription offering.

12. Launch Your Subscription

A successful launch combines excellent product offerings with impeccable customer service.

Ensure that your launch strategy makes a strong, positive impression to secure early subscribers and encourage word-of-mouth promotion.

13. Develop a Customer Retention Strategy to Generate Recurring Revenue

Retaining existing customers is more cost-effective than customer acquisition. Implement a loyalty subscription program, engage customers through regular feedback, and use personalized marketing to enhance their experience.

Focusing on building a loyal customer base can stabilize your revenue and ensure long-term success.

14. Analyze and Adjust Your Offerings

Regularly review customer feedback and subscription analytics to refine your offerings. Stay flexible and ready to adapt to changing customer preferences and market conditions.

This sort of agility can help maintain the relevance and attractiveness of your subscription service.

15. Increase Social Media Engagement

Social media is a powerful tool for building relationships with your subscribers.

Create engaging, relevant content that encourages interaction and strengthens ties with online communities. Such an approach can help maintain interest and attract new subscribers through organic growth.

16. Collaborate with Influencers and Bloggers

Partnering with influencers who align with your niche can extend your reach and enhance your brand’s credibility.

Choose influencers carefully and manage these relationships to maximize the impact of their endorsements on your subscription business.

17. Enhance Your Subscription Model Over Time

Continuously improve your subscription model by introducing new products, adjusting pricing strategies, and offering customizable options.

These innovations keep subscription services fresh and appealing, encouraging ongoing customer engagement and sales.

How Much Does It Cost to Start a Subscription Box Business?

Starting a subscription box business can vary widely in cost, depending primarily on the scale and complexity of your operation. Initial expenses include product sourcing, packaging, website development, and marketing.

Costs can range from a few hundred dollars for a home-based operation to tens of thousands for a larger scale with premium products and custom packaging.

Careful budgeting and resource management in the early stages can help minimize expenses while maximizing your business’s potential growth.

How Profitable Are Subscription Boxes?

A subscription based business model can be highly profitable. Subscription business stats indicate that margins often fall between 30% to 60%, depending on the industry, product type and how much customers pay.

The key to profitability lies in maintaining a strong subscriber base, minimizing churn rates, and optimizing cost structures for sourcing and distribution. Effective marketing and customer retention strategies enhance lifetime value and profitability.

As subscription businesses scale, they can leverage economies of scale and data-driven optimizations to further increase margins and overall financial success.

Image: Envato

This article, "How to Start a Subscription Business in 17 Simple Steps" was first published on Small Business Trends

“What is your favorite Mom & Pop shop in the US? What makes this shop your favorite? What city is the shop located in, and any lessons that another small business could learn from this operation.”

Here’s what YEC community members had to say:

1. Voodoo Doughnut – Portland, Oregon

“One of my favorite Mom & Pop shops in the US is Voodoo Doughnut, located in Portland, Oregon. This iconic doughnut shop is known for its unique and delicious doughnut creations, as well as its quirky atmosphere and eclectic decor. What makes Voodoo Doughnut stand out is its creative approach to doughnut-making. They offer a wide variety of doughnuts, from classic flavors like chocolate and old-fashioned to more unconventional options like the maple bacon bar and the Voodoo Doll doughnut. They also offer vegan and gluten-free options to accommodate a variety of dietary restrictions. Another aspect of Voodoo Doughnut that sets it apart is its strong sense of community. They host events like weddings and birthday parties in their shop, and they frequently collaborate with local artists and businesses to create limited-edition doughnuts and merchandise. Small businesses can learn from Voodoo Doughnut’s success by embracing their unique identity and staying true to their values. By offering high-quality products, creating a welcoming atmosphere, and building strong relationships with their customers and community, small businesses can thrive and stand out in a crowded market.” ~ Benjamin Rojas, All in One SEO

2. Joe’s Coffee Shack – in Boulder, Colorado

“One of my favorites is “Joe’s Coffee Shack” in Boulder, CO. Its warm atmosphere, personalized service, and quality coffee make it stand out. Lessons for small businesses include creating a welcoming environment and prioritizing strong customer relationships and product quality.” ~ Nic DeAngelo, Saint Investment – Real Estate Funds

3. The Donut Man – Los Angeles, California

“If you’re looking for the best donuts in L.A., look no further than The Donut Man. The lines form around the clock at this 24/7 shop. It’s located in the San Gabriel foothills and is well-known for its consistently high-quality donuts. It was originally founded by Jim and Miyoko Nakano in 1972. There’s also a smaller location inside Grand Central Market. There’s always something seasonal, fresh and satisfying to try. For example, in the spring and summer, you can enjoy a glazed fruit donut stuffed with fresh strawberries or peaches. One of the best lessons to take from this establishment is value of word-of-mouth and the power of consistent quality over decades.” ~ Blair Thomas, eMerchantBroker

4. Bar-Bill Tavern – East Aurora, New York

“One of my favorite Mom & Pop shops has to be Bar-Bill Tavern, in East Aurora, New York. If you’re ever going to a Bills game, make the time for it. Their wings and beef on weck are out of this world. They’ve mastered these local specialties, ensuring top-notch quality every single time. So, what can other small businesses take away from Bar-Bill’s success? It’s all about honing in on what you do best. For Bar-Bill, that’s their standout dishes. They also excel at making everyone feel welcome, creating a warm, inviting atmosphere. Stick to high-quality products and a great customer experience, and you’ll build a loyal following just like they have. Engaging with the community also plays a big role in their lasting success.” ~ Travis Schreiber, Erase Technologies, LLC

5. Moon Over Medium – New Orleans, Louisiana

“One of my favorite mom-and-pop shops is Moon Over Medium, located outside of New Orleans. It’s actually run by one of my colleagues, and although spiritual crystals aren’t typically something I’d shop for, I’ve grown to really appreciate this business. What stands out for me is the owner’s commitment to growth and innovation. Despite being a niche store, the owner constantly finds new ways to expand her offerings and reach new customers. That’s something that all business owners have to master.” ~ Bryce Welker, Testing.org

6. Vinoteca – Atlanta, Georgia

“My favorite Mom & Pop shop is Vinoteca, located in Atlanta, GA. This charming wine shop stands out because of its exceptional customer service. The staff not only remembers each customer’s unique tastes in wine, but they also make tailored suggestions for new bottles that align with our individual palates. They keep track of significant personal events like engagements and birthdays, which adds a wonderful personal touch to their service. The key takeaway for other small businesses is the value of a personalized experience. Vinoteca exemplifies how offering top-tier, customized service can command a premium and deeply resonate with consumers.” ~ Krish Chopra, NPHub

Image: Envato

This article, "6 Favorite Mom & Pop Shops in the US" was first published on Small Business Trends

Are you curious about learning how to start a pressure washing business? The pressure-washing industry was worth $1.2 billion in 2023. 

Pressure washing services are popular because they’re effective and eco-friendly. They also allow you to target niche markets, including eavestroughs, fence and deck cleaning, and window and driveway pressure washing.

There’s plenty of money to be made in this industry. According to Forbes Advisor, if you do two jobs a day at $250 each, you’ll make $130,000 a year. Interested in starting a pressure washing business? Use the following information to get your new business up and running.

How to Start a Pressure Washing Business: 14 Simple Steps

If you’re ready to learn how to start a business in the competitive field of pressure washing, read on for a guide.

1. Learn the Required Skills for Pressure Washing

You need the right skills to create a successful pressure wash business to get more customers.  

Learning how to use the equipment properly is the first step in making good money on any pressure washing job. The Power Wash Academy has some courses to help you understand the best way to use pressure washers. 

If you’re going to take some training, you should be sure the classes comply with Department of Transportation regulations as they apply to mobile contractors. Formal training is excellent for a pressure washing business starting out.

Training needs to include knowledge of the cleaning solutions used and how to handle and use them properly. To run a power wash business, you’ll also need training on Fall Protection according to OSHA 1910 General Industry Standard.

2. Create Pressure Washing Business Plan

Creating a comprehensive business plan is essential for a pressure washing company, serving as a roadmap to guide operations and growth. Here are the parts of a business plan to include:

• Executive Summary: This section provides a concise overview of your business, including your mission statement, foundational goals, and a summary of what follows in the rest of the business plan.
• Company Description: Offer a detailed description of your pressure washing business. Include information about the business structure, location, and the specific services you will offer.
• Market Analysis: Analyze your target market, identify your potential customers, and understand the competition. Detail how your business fits into the existing market and how you plan to differentiate yourself.
• Marketing and Sales Strategy: Outline how you intend to attract and retain customers. Include strategies for pricing, promotions, advertising, and sales. Discuss both online and offline marketing tactics.
• Service Offerings:
  • Residential services: homes, driveways, patios, and decks.
  • Commercial services: building exteriors, parking lots, and public pathways.
  • Specialized services: graffiti removal, industrial equipment cleaning, and more.
• Operational Plan: Describe the day-to-day operations of your business, including the equipment and human resources required. Explain the operational workflow and any suppliers or partners.
• Management and Organization: Detail your business’s organizational structure, including key roles and responsibilities of the management team.
• Financial Plan: Provide financial projections and needs. Include startup costs, projected income, and expenses, and break-even analysis.

This structured approach will help define your business goals and the strategies for achieving them, providing a clear path for the success of your pressure washing company.

3. Learn More About Your Target Market

A successful business structure depends on defining your target demographic. Pinning down specific geographic areas with high demand helps. Don’t shy away from technology if you’re putting together the information to make a decision. For example, Semrush has a Market Explorer to help you analyze and benchmark against competitors and local businesses.

4. Price Your Pressure Washing Services

There are several different pricing models successful pressure washing companies favor. HubSpot provides a comprehensive list of strategies and pricing models to get this right. They include:

Competition-based pricing focuses on the going or existing market rates for any service or product. If you’re going to try this one, make sure that you understand it doesn’t take into account consumer demand or the costs involved with the product.

Dynamic pricing strategies, such as surge or demand pricing, are flexible choices that can be adjusted by analyzing customer and market demand for your cleaning business.

5. Set Up Your Pressure Washing Business

You need to set up a business bank account, which means you’ll need a federal EIN number. These offer limited personal liability protection. Get an employer identification number from the Internal Revenue Service.

This is also the time to decide on the business structure, such as whether you’ll be a sole proprietorship or partnership or a limited liability company. Sole proprietorships are the most straightforward choice and require the least paperwork.

Tracking business finances and expenses is crucial for cash flow in all pressure-washing businesses. Your pressure washing service should consider using a business credit card to buy supplies. Prompt payments add to a company’s credit history. It is also important to separate personal and business expenses for accounting and tax filing. Personal assets should not be mixed in with business accounts for legal and tax purposes.

6. Get Licenses and Permits

You might need a business license and business insurance. Consider liability insurance to protect your personal assets. Each state has different requirements. A permit to work with chemicals could be required.

If you have a mobile operation, you must contact your local Chamber of Commerce to see if you need individual municipal licenses. Other local businesses might help suggest the appropriate business structure.

7. Buy the Necessary Pressure Washing Equipment

Of course, a big chunk of your business expenses will be pressure washing equipment. Checking off a few boxes starts with deciding whether to buy gas or an electric pressure washer. Aim for low start-up costs but quality purchases.

• The fuel cost is included if you buy gas-powered machines. You’ll need a generator or use clients’ energy if you go electric with residential pressure washers.
• The kind you buy depends on the jobs. A commercial property requires a pressure washer that uses hot water, while a standard washer doesn’t. 

Here is a list of all the necessary equipment.

8. Invest in Quality Cleaning Solutions

Small businesses need the right cleaning solutions. Pick eco-friendly detergents. Pick ones that don’t leave a film behind, like soaps. Look at the surfactants in detergents.

9. Hire Employees

Power washing equipment aside, you’ll need to hire workers. King of Pressure Wash.com suggests culture over qualifications. Teaching technical skills is easier than the right attitude and work ethic.

Potential clients respond to employees with soft skills.

10. Market Your Pressure Washing Business

Effective marketing strategies help. Your marketing materials can be social media-focused. Make sure your business name and logo are used consistently in the same way for online advertising. That includes fonts and colors on social media accounts.  

Market research will tell you if business cards, flyers, and other print media will attract customers.

11. Look for Partners in your Community

Partnering with local business owners provides word-of-mouth advertising. For example, you might connect with a local cleaning franchise to recommend each other’s services to current clients. You can also host events like webinars to get customer feedback.

12. Make Sure Your Business Complies with OSHA Regulations

There are regulations for your pressure washer business. Like using water pressure above 2000 PSI requires a full face shield.

13. Scale Your Successful Pressure Washing Business

Digital marketing can help you expand your business. Make sure you have a good website that uses search engine optimization (SEO).  Google and Facebook ads can help you get more clients.

14. Explore Diversification of Services

A pressure wash business can offer additional services like kitchen exhaust cleaning and graffiti removal. You can even purchase some pest control equipment and offer multiple home services.

How Profitable is a Pressure Washing Business?

Forbes reports that you can make $130,000 USD a year if you work 260 days and do two jobs on each day as your own boss. A pressure washing business can be highly profitable with low startup costs and high demand in residential and commercial markets. Profits can increase with niche services and efficient operations depending on location and scale.

How Does My Pressure Washing Company Get Clients?

An optimized website that offers incentives like free services or a custom quote can help you gain clients. To attract clients to your pressure washing business, leverage online marketing, create a strong social media presence, and invest in local SEO to appear in local search results. Additionally, distribute flyers, offer promotions, and request referrals from satisfied customers to increase visibility and credibility.

Pressure Washing Vs. Power Washing Business: What’s the Difference?

The primary difference between pressure washing and power washing is the temperature of the water. Pressure washing uses normal-temperature water at high velocity, whereas power washing uses hot water to remove stubborn stains and mildew more effectively. Both serve similar markets but may differ in equipment cost and usage.

Image: Envato

This article, "How to Start a Pressure Washing Business: Your Step-By-Step Guide" was first published on Small Business Trends

Having awakened from a centuries-long sleep in the V Rising world, your vampire must collect many materials to improve their equipment and abilities. One of the late-game materials is Wool Thread, a durable and elegant improved version of Coarse Thread that is superior to this material in all respects. Wool Thread is essential in the late game for crafting clothing, armor, and even some complex craft materials. Luckily, it is pretty easy to get.

Zelda and Diablo come together in a new game from the mind of Ron Gilbert, the creator of the beloved Monkey Island franchise. The game in question doesn't have a name yet, as it's very early in development, but Gilbert claims the title is set to bring elements of Zelda and Diablo together in one experience, with heavy inspiration coming from the former.