Small business loans depot – Bureau of Economic Analysis; GDP Gross Domestic Product

According to small business loans depot’s review of the April 25th 2011 report of the Bureau of Economic Analysis on GDP, Gross Domestic Product, real gross domestic product, which represents the total output of all goods and services produced by labor and property in the U.S.,  increased at an annual rate of 3.1% in the 4th quarter of 2010.   In the third quarter, according to the Bureau of Economic Analysis, real GDP increased 2.6 % in the third quarter.

This increase is primarily a reflection of an increase in personal consumption expenditures, (PCE), exports, nonresidential fixed investment, and state and local government spending.  Computer sales were up .35%, motor vehicle production decreased .27%.

Real personal consumption increased 4.0% & Corporate profits increase 46.9 % from the 3rd to 4th quarter.

With real consumption and corporate profits continuing to expand, future prospects for employment continue to improve.   Corporations are closely monitoring their competitors.   Upon signs of corporations with a large number of employees hiring, industry competitors do not want to be left behind staffing wise as hiring ramps up.   Hiring the best employees becomes critical with real increases in demand, as evidenced by the reported increase in personal consumption expenditures.

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Inflation outpacing wage increases

According to a March 17th report by the bureau of labor statistics,  over the last 12 months from March 2010 to March 2011, the prices of all goods and services, know as the all items index, increased just 2.1 %, showing inflation outpacing wage increases.  Energy costs was the largest contributor to the increase, the other major components, food, shelter, new vehicles, medical care, tuition, and airline fares increasing, also contributing to inflation outpacing wage increases.

The median U.S. inflation adjusted household income — wages and investement income —  fell to $49,777 in 2009, the most recent year figures are available, according to the census bureau.    Incomes probably dipped last year to $49,650, estimates Lynn Reaser, Chief Economist at Point Loma Nazarene University in San Diego, and a board member of the National Association for business economics. That would be a .3% decrease since 2009.   Ms. Reaser estimates incomes will decrease this year as well.

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One of a number of reasons is that during periods of high unemployment, employees do not have nearly the bargaining power they do in periods of low unemployment.    Another reason is that with interest rates at or near historical lows in the past decade, interest earnings on savings accounts, money market accounts, and certificate of deposits are very low.   Some of the most affected are senior citizens, who have not had a cost of living adjustment in the past two years.

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U.S. Department of Commerce – Helps american businesses become more innovative at home and competitive abroad.

U.S. Bureau of Economic Analysis – Provides statistics on consumer spending, corporate profits, travel and tourism and much more.

Entrepreneurworld – Resource for Entrepreneurs, including starting your own business, growing your business.

Bureau of Labor Statistics – Provides companies with up to date information on employment, demand, hiring, productivity and other information that may be useful to companies.

International Trade Administration – Creates jobs and economic growth by promotingU.S. companies abroad to governments in other countries.

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Department of Labor – Provides information on many labor issues that can be useful to companies, such as insurance, regulation, wages, wage hours, compensation, safety and health

U.S. Patent and Trademark Office –U.S. office to file patents to protect a companies new or existing proprietary products.

U.S. Trade and Development Agency – Promotes U.S. Exports to Foreign Countries, please review if your company is interested in exporting goods to foreign countries.

CEO Refresher – A monthly newsletter on creative leadership ideas. Short articles, brief book reviews, models, management tools, quotations and commentary.

E-Network for CEOs – Online articles and much more for CEO’s

Public Radio Planet Money – All issues money related to the public.

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Small business company structure

The type of company structure a business chooses is important when the company needs a small business loan.   Many business owners start with a sole proprietorship, incorporating later.   Retain all business licenses, business checking account statements and tax return information since the inception of the business to prove time in business, which will be important for the business over time.

Incorporating immediately is typically a better choice because the business will be listed prominently on the secretary of state records.    By incorporating immediately, any other entity your company deals with will have an easy, fast way to see your full time in business with the state records.   Time in business is one of the key factors when business credit is evaluated.

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The main issue often cited by business owners when it comes to which type of business structure to choose is liability.   The officers of the business do not want to have personal liability for any issues related to the company.   If the business gets involved in legal issues, bankruptcy issues, civil or criminal issues involving the operation of the business, the owners want the maximum separation to protect them.

This is best accomplished through either the S-Corp, C-Corp of LLC company structure format.    If the business is small, the S-Corp may be the best choice for businesses with less than 35 Employees.   If the business is a single member,  then the LLC, Limited Liability Corporation may be the best choice when setting up the business structure.   If the owners chooses a Sole Proprietorship or Partnership, they leave themselves open to litigation or debt collection problems.

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