The essay draws attention to all small business entrepreneurs who are preparing to start off small businesses. It is advisable for them not to focus solely on expanding their bottom lines. A payroll provider by the name Paychex, talks of it being equally important. For those willing to start small businesses to be aware of the recent legislative issues that will lead to interference in their profiting ability as from the year 2014.
Putting into consideration all the regulation to be in effect during the year, small business investors will view it as a significant challenge to them. That may lead to taking most of the business owners far away from other important aspects of managing their businesses. One of the top most regulatory issues that small businesses ought to have a mind has been identified to be “health care law”.
The issue has come along due to the numerous provisions made related to the health care reforms. The law requires small business owners to offer insurance covers to all their employees. Employers in the small business are required to establish their applicable large-employer status so as to ensure proper tracking of employees working hours. To add on that, employers have a duty concerning the flexible spending accounts (FSAs) to provide group health insurance coverage. All this is done so as to put into consideration the health of workers in the small businesses. Also the small businesses tax credit on employers, offering health insurance covers, will also change within the progress of the year 2014. (chard books, 13)
The implementation of this law will eventually lead to an increased decrease in the general number of those who have already invested or are willing to invest in small businesses. Since many of the people who may have an interest to explore the opportunities in the small businesses may have a desire to invest in the small businesses. But considering the laws and regulations put across, it becomes very hard for them to start investing in the field regardless of their desire to do so. Although the law seems to possess some form of bias since it relies on protecting the employees only. The law is in a position to adequately protect the rights of employees which earlier on they seemed to be denied by their employers. Now for those desiring and can spend in the industry will have to cover their employee’s, and that becomes a disadvantage to them.
With my interest is on many small business owners who use business loans to finance their businesses. But with the recent tightening of health care measures, business owners may need to use other means of raising capital so as to manage covering their employees and meet what the law demands. My suggestion is, one source of business financing lending is money from relatives and friends. To get the basics of business financing from friends and family members, includes how to ask for money and deal documenting.
Depending on the number of investors how much money you raise, you may also feel the need to work with the federal and more so the state securities laws. One will need to get a lawyer to make certain changes that you are in line with these regulations and have the right paperwork. Therefore, the responsibility remains to investors to try and meet the law requirement for efficient running of the business.
Works Cited
Raising Private funds: loans and Equity Investments | Nolo.com." Nolo.com. Web. 11 Nov. 2014.
Regulatory laws That Will Affect Small Business in 2014." BusinessNewsDaily.com. Web. 11 Nov. 2014.
