Handling Short-Term Financial Difficulties in Small Business Management

Learn how small businesses can effectively handle short-term financial difficulties through strategic planning, budgeting, and financial tools. This article offers practical solutions to maintain financial stability, overcome cash flow challenges, and ensure long-term growth amidst unexpected disruptions.

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Small firms are essential to the economy due to their ability to provide jobs, diversity, and innovation. However, they may also be quite susceptible to transient financial difficulties. Effective management of these can often be the difference between growth and failure in a small business’s lifecycle. This article will explore strategic ways to navigate these challenges and maintain financial health. A business’s resilience often depends on the owner’s ability to adjust agilely to financial hiccups and strategically plan for unforeseen events.

Identifying Short-Term Financial Obstacles

Firstly, cash flow problems are the primary concern for most small businesses, as they may need help to cover operational costs due to delayed payments or undercapitalization. Unexpected expenses can also cause significant interruptions, such as broken equipment or an abrupt spike in the price of materials. Financial planning can sometimes be complex due to revenue variations, especially for companies with seasonal peaks. Another challenge is managing credit, as businesses have to schedule inbound payments from clients with outbound payments to vendors and staff. These demands may burden a small business’s financial stability and operational effectiveness, requiring preemptive action.

Strategic Planning for Short-Term Financial Health
Intentional budgeting is crucial to building a resilient financial structure. A budget should account for operational costs and include a line for unexpected expenses. Creating an emergency fund offers a financial safety net that comes in handy when things are tight. Using cash flow forecasting, a company can proactively manage its liquidity by projecting future revenue and expenses. A well-prepared company can use these predictions to quickly and effectively modify operations, guaranteeing stability during tumultuous times.

Financial Tools and Solutions
Short-term financing options are available for small businesses facing liquidity crunches. Options like lines of credit or factoring provide flexibility and immediate funds. Government programs and grants can provide much-needed assistance without requiring repayment. These financial tools are essential lifelines that help companies close the gap between revenue and expenses without sacrificing their operational requirements or strategic objectives.

In this context, harnessing the power of payroll loans can provide businesses with immediate funds earmarked explicitly for employee salaries. This can protect the business’s cash flow from being disrupted by payroll needs, allowing the company to maintain operations and sustain growth, even when unexpected expenses arise. Payroll loans are financial support and a tool for maintaining morale and stability within the team during critical periods.

Best Practices for Managing Short-Term Financial Challenges
Proactivity is key. By anticipating potential financial difficulties, businesses can implement strategies to mitigate them. Maintaining good relationships with financial institutions can pay dividends, as existing partners are more likely to assist when needed. Regular financial evaluations are essential for modifying plans in response to changes in the external market environment and internal fiscal landscape. Businesses can become more flexible and adaptable with this dynamic approach to financial management, which may help them convert financial obstacles into chances for growth and optimization. Financial advisors are professionals who can provide specific solutions that align with small businesses’ objectives and particular issues. Their counsel can be helpful while navigating the unpredictable world of finance.

Case Studies
Successful navigation of financial chopsticks is familiar. Take, for instance, a local bakery that experienced a sudden downturn in sales due to road construction blocking its storefront. They could keep staff on and bounce back more robust when the construction ended by negotiating extended payment terms with their suppliers and taking out a timely payroll loan. These illustrations show how crucial adaptable and responsive financial planning is to a company’s long-term existence and expansion.

Conclusion
An essential component of effective small business management is anticipating and actively handling short-term financial challenges. Regular review and adaptation of financial strategies can ensure a business remains agile and ready to face challenges head-on. With the right financial tools, proactive actions, and strategic planning, businesses may successfully navigate their way to long-term success.

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The Strategic Benefits of Building an Offshore Dedicated Development Team

This model provides more than just technical talent—it offers flexibility, scalability, and the opportunity to drive business success across borders. Let’s explore how partnering with an offshore dedicated development team can help you achieve long-term benefits.

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In today’s highly competitive and fast-paced tech industry, companies are constantly looking for ways to enhance their productivity and remain agile. One effective strategy that has gained significant momentum is building an offshore dedicated development team. By leveraging global talent pools, businesses can focus on core competencies while gaining access to specialized expertise and cost-effective solutions.

This model provides more than just technical talent—it offers flexibility, scalability, and the opportunity to drive business success across borders. Let’s explore how partnering with an offshore dedicated development team can help you achieve long-term benefits.

What Is an Offshore Dedicated Development Team?
An offshore dedicated development team consists of a group of software engineers and IT professionals who work exclusively for your company from an overseas location. Unlike traditional outsourcing, this team operates as an extension of your in-house staff, allowing seamless collaboration and communication between the two teams.

The offshore team is dedicated to your specific projects, ensuring that they align with your company’s goals, processes, and culture. Businesses can maintain full control over the development process while benefiting from the advantages of offshore hiring.

Key Advantages of Offshore Dedicated Development Teams
1. Cost Efficiency Without Compromising Quality

One of the most compelling reasons businesses choose an offshore dedicated development team is the significant cost savings. Hiring and maintaining a full-time in-house team can be expensive, especially in countries with high labor costs. Offshore development centers, often located in regions like Eastern Europe, Asia, and Latin America, provide access to highly skilled developers at a fraction of the cost.

However, cost-effectiveness doesn’t mean compromising on quality. Many offshore locations are known for their technical expertise, particularly in cutting-edge technologies like AI, blockchain, and cloud computing.

2. Access to a Global Talent Pool
In-house recruitment can sometimes limit you to the local talent pool, which may not always have the skills or experience required for your projects. By establishing an offshore dedicated development team, businesses can access a global pool of talented professionals. This not only provides opportunities to find developers with niche expertise but also introduces fresh perspectives and innovative ideas.

3. Focus on Core Business Functions
Managing every aspect of your business internally can be overwhelming, especially for companies working on multiple projects simultaneously. By delegating development work to an offshore dedicated team, businesses can free up time and resources to focus on core functions, such as business development, strategy, and customer engagement.

This approach allows your in-house team to prioritize business growth, while the offshore team handles the technical aspects of software development, maintenance, and innovation.

4. Flexibility and Scalability
One of the primary benefits of working with an offshore dedicated development team is the flexibility it offers. Businesses can easily scale the team up or down depending on the current project needs. This adaptability ensures that you have the right resources when you need them, without the burden of managing permanent staff during slower periods.

Moreover, as your business grows and your development needs evolve, the offshore team can quickly adjust, enabling you to respond to market changes and customer demands with agility.

5. Faster Time-to-Market
In today’s digital era, speed is crucial. The ability to launch new products or features faster than competitors can be a significant competitive advantage. With an offshore dedicated development team, businesses can expedite the development cycle. The added resources and expertise help accelerate project timelines, ensuring quicker delivery of products to market.

This agility allows businesses to seize new opportunities, meet customer expectations, and stay ahead of the competition.

6. Seamless Collaboration and Communication
A common misconception about offshore teams is that distance and time zones will hinder communication. However, modern communication tools and project management platforms make it easy to collaborate in real-time. Offshore dedicated development teams are typically well-versed in working across time zones and use a variety of tools to ensure that all stakeholders remain aligned throughout the project lifecycle.

Additionally, the team’s focus on your project allows them to integrate with your in-house processes and workflows, creating a seamless experience and fostering close collaboration.

How to Build an Effective Offshore Dedicated Development Team

1. Choose the Right Offshore Partner
The success of your offshore dedicated development team depends largely on the partner you choose. Conduct thorough research to find an offshore development center with a proven track record, experienced developers, and strong project management capabilities.

2. Clear Communication and Goals
Establishing clear communication channels and setting defined goals is critical when working with an offshore team. Use collaboration tools like Slack, Jira, or Microsoft Teams to keep the team connected. Also, set up regular meetings to discuss progress, challenges, and any necessary adjustments.

3. Invest in Cultural Alignment

Cultural differences can sometimes lead to misunderstandings or conflicts. To mitigate this, invest time in building cultural alignment between your in-house and offshore teams. Encourage open communication and consider organizing virtual team-building activities to foster a sense of camaraderie.

4. Provide Continuous Support and Feedback
To ensure the success of your offshore dedicated development team, provide ongoing support and feedback. Regularly review performance, offer constructive input, and celebrate milestones to keep the team motivated and aligned with your company’s vision.

Conclusion
In today’s globalized world, leveraging an offshore dedicated development team can significantly enhance your business’s efficiency, agility, and innovation. By providing access to cost-effective, high-quality talent, as well as offering flexibility and scalability, offshore development teams have become an indispensable resource for companies looking to stay ahead of the competition.

Whether you’re scaling your operations, launching a new product, or simply seeking specialized expertise, building an offshore dedicated development team can be the strategic advantage your business needs to thrive in a dynamic and evolving tech landscape.

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Why Hiring Offshore Developers is the Key to Scaling Your Business

In today’s competitive tech-driven world, hiring offshore developers has become a strategic move for businesses aiming to scale efficiently. Companies can access a global talent pool, reduce costs, and accelerate project timelines—all while maintaining high-quality deliverables. In this article, we’ll explore why hiring offshore developers can be a game-changer for your business.

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In today’s competitive tech-driven world, hiring offshore developers has become a strategic move for businesses aiming to scale efficiently. Companies can access a global talent pool, reduce costs, and accelerate project timelines—all while maintaining high-quality deliverables.

In this article, we’ll explore why hiring offshore developers can be a game-changer for your business.

Why Hire Offshore Developers?
As the tech industry grows more competitive, businesses face mounting challenges in acquiring top-tier talent while managing costs. Offshore developers offer a practical solution by providing access to specialized expertise from around the world at competitive rates. This hiring model helps businesses reduce expenses, accelerate project timelines, and stay ahead of market demands without compromising quality or efficiency.

1. Access to a Global Talent Pool

Offshore hiring breaks geographical barriers, enabling businesses to tap into specialized skills worldwide. Whether it’s web development, AI, or cloud computing, offshore developers provide expertise at competitive rates.

2. Cost-Effective Solutions

Hiring locally can be costly due to salaries, benefits, and infrastructure expenses. Offshore developers offer a cost-effective solution while maintaining quality and project standards.

3. Faster Project Delivery

With dedicated offshore teams, businesses can operate around the clock. Developers in different time zones ensure continuous progress and faster project completion.

4. Scalability and Flexibility

Offshore development teams provide scalability, allowing businesses to adjust team sizes based on project requirements. This flexibility ensures cost control and operational efficiency.

Benefits of Offshore Development Services
Partnering with offshore development teams offers numerous advantages that can significantly enhance business performance. From reducing operational costs to gaining access to cutting-edge technologies, offshore services help companies stay competitive in today’s fast-paced digital landscape.

1. Expertise in Diverse Technologies

Offshore developers come with experience in various tech stacks, frameworks, and development tools. This ensures innovative and custom solutions tailored to your business needs.

2. Business-Focused Approach

Offshore teams align closely with business goals. They are often managed by experienced project leads who ensure that deliverables meet quality expectations.

3. Reduced Infrastructure Costs

By outsourcing development tasks, businesses can save on office space, IT infrastructure, and maintenance, focusing their budgets on core operations.

4. 24/7 Support and Maintenance

Offshore teams provide continuous support and maintenance, ensuring your business operations run smoothly even after deployment.

How to Hire Offshore Developers?

1. Define Your Project Needs

Clearly outline your project goals, required skill sets, and budget. This will help you find developers with the right expertise.

2. Choose a Reliable Partner

Select a reputable offshore development company with proven success in delivering high-quality software solutions.

3. Evaluate Technical Skills

Conduct technical assessments and interviews to verify the developers’ skills and problem-solving capabilities.

4. Start Small and Scale Gradually

Begin with a small project or a pilot phase. If the results align with your business goals, scale up the team accordingly.

Final Thoughts
Hiring offshore developers can transform how businesses scale and innovate. By leveraging global talent, businesses can reduce costs, speed up development, and focus on core business growth.

Ready to take your business to the next level? Hire offshore developers today and unlock limitless possibilities!

Looking for the best offshore development team? Contact us today to find skilled developers who can turn your business vision into reality!

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Why Money Is Destroying the Planet

It seems obvious that money is the tool bulldozing everything alive into the ground. It doesn’t look dangerous as it’s mostly paper, but it is stronger in power than all the nuclear bombs put together, more lethal than the strongest poison, more demanding than any king, and more desirable than anything else on offer. It is, however, nothing more than man’s invention and nothing in God’s eyes yet it is the means to destroy us all.

Its power comes from our imagination while its poisoning of systems and destruction of resources is derived from greed. Its strength is aligned to power and control exercised by religions and governments. The desire for it is based on nothing more than the way man has structured society to depend on it for food, clothing, housing, and everything else.

The economic system is the brain-child of the Roman Empire. More specifically it came from Emperor Claudius Constantine, who established the Catholic church, started Christianity, built the Vatican, invented Jesus Christ, and murdered millions. He gained sole rule over the huge expanse of territories that were impossible to rule with just one man but he had a plan.

Contemporary authors noted that the plan was there from his childhood and when he seized the throne on the death of his father, Constantius, he worked to carry it out. What they did not know, nor has the world known, that he is 666 as described in Revelations 13:12-18.

Money, taxes, penalties, the law, and religious domination of entire countries are part of his legacy. Now the world cannot live without them because the economy is based on the same principles and religion and the law are so entwined that one cannot exist without the other.

This is the crux of the World Order which sanctions money as key to our lifestyles and success. Now it is destroying the planet as habitats are destroyed, resources are dwindling, and population increase is heading to complete disaster. While people are looking for someone to pop up wearing the numbers 666 they should look back to the beginning of our era.

Following my reincarnation, the knowledge that came with me is such that the roots of religion in sun-worship stand out like neon lights. Nothing people do now is much different to what they did then except that we have gotten better at it. When requested by the Spirit to tear down the wall of blindness, which happened in 1984, the size of that barrier to truth and life was shown to me in visions.

No one has the ability to circumvent or penetrate it unless given the means to do so by the real God, the Spirit of the Universe. It was promised to happen before the last days and by all accounts that time has arrived. Money is man’s folly and it is destroying the planet.

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The Unstoppable Financial Crisis Is Happening Now

The world is on the brink of a major financial crisis that no one can fix and it has to do with greed, the super-wealthy, and the Chinese economy. While the rumble has gone on for some time we may now be about to witness the cave-in of the main system at the heart of the World order. Money is an invention that started with the Roman Empire and trade followed by a method of taxation that allows governments to seize a portion of income earned.

This called for records to be kept regarding money transactions and long before there were banks there was corruption and the hiding of deals that might incur a debt to the government. Over time the rich got richer and the poor got poorer. That has never changed and the ‘upper classes’ were able to virtually steal labour and their strength directed politics.

It led to the slave trade and then indentured labourers, share farmers, and a host of other systems that saw the wealth at the top increase to the point where now we are in a situation where the top is too heavy to support the bottom. This ship is spinning and it is sinking beneath the waves of corruption and destruction.

As the playing field shifted and those who were previously on the bottom of the ladder suddenly rose to the top their need to hide money seemed to take over the entire financial system. Many put their wealth into off-shore tax havens and this has drained countries of tax revenue they need to run services. We already see bankrupt countries emerging, such as Venezuela where people are now starving and the economy is in ruins.

Add to that the uncertainly of a volatile situation in the oil producing countries of the east and the terrorism that is costing governments fortunes to stay alert while terrorists can strike anywhere at any time. This is obvious from the shooting in Orlando, Florida, where a gunman got into a nightclub and opened fire killing dozens and injuring dozens more.

China is a threat to the world’s economy as its yuan is posing a major problem. While it is known to be overvalued the wealthy within the country stand to lose fortunes if the government acts to decrease it. The stock market has already plunged a couple of times with the props hastily put in place to save it now buckling under the strain.

It is not a case of if but when the next financial crisis will happen and this time there may be no recovery. The bricks on which the economy stands are already crumbling making it a safe bet that it is happening now and gaining momentum.

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Money Is the Poisoned Carrot That People Feed on

Over and again the term ‘money’ draws far more readers to my articles than any other. It is the magic that runs the World Order and the nourishment that builds strength in communities and nations. Yet, it is nothing but a dream and a concept of evil that emerged from the two beasts of Revelation and its purpose is to destroy the world. Anyone who has a debate with that concept needs only to look around at what is happening now.

Climate change and global warming are the big items, but not the biggest. The potential for the war of all wars is looming and the total collapse of the financial system is but a matter of time. Because it is based on nothing more than a concept of exchange and the transfer of goods for credit it was always doomed to failure.

No one gets ordinance such as bombs, guns, aircraft, drones, army supplies, ships, and other things without it. Likewise, no one goes into a forest and cuts the trees down unless there is money as a reward. Yet again no one fishes out the oceans unless there are customers for the produce while the unwanted by-catch is discarded as waste. And who digs up mountains and transports tons of metals and other things around the world for anything less than money?

Making money is in the heart and mind of most who think little about the after-effects of their actions. They are only one in millions doing the same so how can their little bit affect anything? The answer to that is to watch a nest of ants. Each little ant can only do so much as it chops up something tasty for its community. With millions of them doing the same the prize is soon gone.

Humanity has reached such a proportion that it is a matter of a short time before all of the earth’s commodities are consumed. This is happening now as the fish stocks in the ocean are pushed to breaking point. Animals dependent on jungles to survive are also facing extinction. In their place horrible things have emerged to spread the poison. They include drugs, corruption, slavery, deadly viruses, diseases, and ultimately starvation, to name but a few.

The carrot is fast disappearing as hoarders take far more than they need while many get nothing. God is ultimately to blame! The beasts were sent to create this very situation and they did it through religion. That has bound people to follow in the footsteps of false gods and prophets that are also inventions to push the communities to the limit.

With memory of my reincarnation it is my opinion that everyone who has lived is back and again religion has brought this about by its dogma. Judgment is occurring now and those who have put money ahead of their spirituality are paying the price. No matter how rich one is they cannot escape the wrath of God.

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5 Common SEO Mistakes That You Should Avoid

Over the past few years, SEO has evolved faster than the previous decade. And this has made it harder for users to keep up with most recent updates. The launch of Penguin and Panda changed the way things worked in the past. In short, the way Google used to rank website has changed a lot. But if you want to reach your objectives, make sure you avoid some common SEO mistakes.

1. Avoiding RELEVANT CONTENT

In the start, Google said that it would rank websites that have the most relevant content on its first page. This statement is still valid. What has happened is that the search engine has become a lot better at achieving the objectives. In other words, now, Google is in better position to know what is relevant and what is not.

So, what you need to do is offer content that is relevant and avoid content is not relevant to your niche. Of course, the content should be informative and unique.

2. Following Tricks

People have been using many illegal ways of cheating the search engine algorithms for traffic, exposure and backlinks. Some of these tactics can still give you a temporary edge, but they are bad for your blog or website for the long-term.

So, you should avoid using low-quality, duplicate content, keyword stuffing, questionable redirects or cloaking for traffic. It may be tempting to go for these short-cuts, but they will just hurt your ranking, and may even get you banned for good.

3. Overloading your site

It has been a common perception that photos, videos and other graphics make a website more appealing for the viewers. To some extent, this perception is true; however, there should not be too much of it or your website will take ages to load. Your viewers don’t have all day to wait for your site to load. If your blog takes longer to load than other websites, the viewers will just click away. You will not only lose viewers, you will also lose ranking against other websites.

4. Making navigation difficult

Navigation is one of the most important factors for any website. It’s important for both viewers and search engines. Ideally, your viewers should be able to get the desired information from your website in one or two clicks. This may not be an easy task for you. So, what you can do is put important content on the main page of your site. This the users will be able to get what they want more easily.

5. Misunderstanding THE BACKLINK PROCESS

You may not want to be obsessed with obtaining a lot of backlinks. Although you don’t have to have backlinks from authority websites to establish your credibility, it helps a lot. However, what you need to do is try to get backclinks in a nature fashion. But it’s not a good idea to buy backlinks. This is one of the worst mistakes that you can make.

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Image Optimization for SEO – Best Practices

Quality content is the key to SEO success. Content doesn’t just mean your text contents. Images must be an integral part of your content strategy. At times, single images can be far more effective than your 1000 word blog post. It also helps you improve blog post quality and performance.

Images, Infographics, Videos and all other multimedia contents on your web page will help you in increasing the user engagement on your site and makes the visitors stay on your site for longer duration which helps in reducing the bounce rate.

Not just adding images to your contents, you should also optimize those images for better SEO performance. Optimization of images must be the one important aspect of your on-page SEO process.

If you are using images in your content, there are many aspects to be considered related to SEO.

Relevancy

Using images doesn’t mean that you should fill up your content with loads of pictures. You should use it only when it is required and also you should use images that are more relevant to your content.

Placement of your images is an another important aspect. It should be placed at a relevant location in your content according to your text content.

Use original images

Originality always helps in improving your user experience and your authority. Usage of original images will be helpful in improving your SEO performance. You can create original images with a graphic designer or you can take your own photographs with a quality camera. It is the reason top White hat SEO companies employ talented graphic designers for creating quality images.

If you are not able to employ an in-house graphic designer or if you are running out of time, you can always use high quality images from the web. But the important factor to be considered is it should be copyright free.

There are many tools available for getting copyright free images without any cost. The most popular ones are Unsplash, Flicker, Freeimages.

Image Size

Images are the main source for damping your site’s speed. And site speed is a crucial factor in your SEO performance. So, you should be extra cautious in using images without compromising your page speed.

It should not also affect your image quality, you should have a correct balance between. You can achieve this by reducing the file size by compression. You can use tools like Photoshop for compression.

File name

Search engine crawlers are visually impaired, it can even interrupt a 5000 word text content, but it cannot interrupt a single image and what the image is about. It is the reason using a keyword rich file names for your images is an important aspect in image optimization.

Google bots and other search engine crawlers can read your image’s file name and if it is named with your target keyword, it gives a signal to search engines about the image topic and thus helps your SEO performance.

For example, if your image is related to selling sports shoes, rather than using the file name as “IMG_89868″ you can use it as “Black_Tennis_Shoes”.

Alt text

Similar to the file name, search engines can read Alt text of the images. Alt text is known as “Aleternative Text”, is an HTML attribute used to describe the content of images.

You should use Alt text which is relevant to your images and it should be clear and descriptive. You can use your target keywords in the Alt text but be cautious about Keyword stuffing.

If you are not focusing on Image optimization, you are missing a huge opportunity in improving your SEO performance. You can use above mentioned best practices in your on-page optimization process.

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Best Support And Opportunities For All Youth

American youth currently face challenging realities along their way to adulthood. With parents working longer hours and the absence of grandparents and other community adults who used to make up support systems, the intergenerational fabric of community has been frayed. Youth development strategies aim to reweave community fabric in a new way – one that takes the supports and opportunities young people should have, and re-institutes them in the context of young people’s realities today. While many of these realities are harsh ones, we know that young people themselves want to be involved in their communities. The importance of building positive youth/adult partnerships in this process cannot be stressed enough.

The mobilization effort is based on influencing three critical elements: information, attitudes, involvement. The transformation of each of these areas, both in the public and private domains, is a necessary condition for change. For example, in the area of information, the country is currently focused on collecting primarily negative youth information, e.g., teenage births, dropouts, and juvenile arrest rate. Inspiring a 180 degree shift, we need to collect information such as: average number of hours youth participate in after-school activities, computer to youth ratio in non-school hours, and the percentage of youth who hold part-time jobs. The three elements are intertwined, for how information is gathered and communicated impacts attitudes as well as how and if people choose to become involved.

Only through broad community commitment, strong public will, and diverse partnerships can youth development take root, go to scale, and be sustained over time. Ultimately, the mobilization must be supported by partnerships among all of the systems in a community that affect young people (i.e., education, corporations, health care, juvenile justice, religious groups, and recreation). To build these relationships and establish youth development infrastructures to improve developmental paths of adolescents will take at least 10 years.

Localities currently spending their resources on efforts to “fix youth” will need to pool, redirect, and increase their financial commitment to youth development. These additional dollars will ensure all youth equal access to supports and opportunities, especially youth living in economically distressed areas.

Our information on the services young people need, and use, is still hit or miss. Communities do not know what they have or what they need. They usually have no way to tell how well services are being used and what services need to be improved.

Good information is important for youth services for exactly the same reasons it is important for everything else. Accurate, accessible standardized information lets people find the services they need and use them effectively. It lets communities manage, evaluate and improve their services and determine the need for changing them, eliminating them, or developing new ones.

Many national efforts to measure outcomes presently use deficit-driven indicators to assess young people’s condition in society, such as teen pregnancy rates, juvenile crime numbers, and percentages of high school dropouts. Although these measures are important, they do not tell the whole story about young people’s experiences. Measures that reflect positive conditions and experiences of young people are also important.

The accelerated trend of the past decade toward empowering our nation’s young people to succeed has fostered a new awareness and commitment to this most valuable resource. Some basic questions are:

- How much do we currently spend?

- How much should we spend?

Some progress has been made through new initiatives in education finance reform and services integration, providing more effective delivery of social, health and educational services for children and youth from the classroom up to the government. This document establishes an initial framework and formula for assessing the financial resources and mechanisms necessary to move American society closer to this ideal. The following were found to be potential root causes of these trends in spending:

- Devaluation of adolescents.

- Lack of consensus on youth development.

- Lack of adequate and protected funding. Funds are not protected and dedicated in the manner necessary to sustain the long-term, comprehensive process that is youth development.

We can support the move toward the ideal by:

- Seeking new types of information.

- Building on the after-school momentum.

- Making a sustainable public investment.

Youth development is an investment that must be made by each sector of the wider community – public and private. Examination of the federal-state matching, local dedicated taxes an incentives for business and philanthropy could lead to models for providing adequate and sustainable funding for youth development. National intermediaries must work to cultivate this leadership at all levels of government, and at the grassroots, by creating constituencies.

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State Sponsored Retirement Plans Continue to Expand

Several states are taking the lead from California, Oregon and Illinois by offering state-sponsored retirement plans that encourage or require private sector employers to participate.

The plans are referred to as auto-IRAs because eligible workers are automatically enrolled, generally within 30 days of employment. The default contribution rate is typically 3-5% of a paycheck and the employee can stop, restart or transfer plan assets depending on their needs. Referred to as “public-private partnerships” by the Pew Charitable Trust, there is no cost to the employer. Proceeds are managed by a private financial firm management for a pre-determined fee. The plans are subject to the Employee Retirement Income Security Act (ERISA) like other sponsored pension and benefit plans.

This article provides an overview of the states that currently offer savings programs, as well as those that plan to do so in the future.

OregonSaves

Oregon was one of the first states to implement a savings program for employees of small businesses who are not otherwise eligible for a workplace sponsored pension plan. Titled OregonSaves, it is a state retirement program that is available to an employer or an individual planning for the future.

OregonSaves had almost $57 million in assets as of mid-2020. Employee contributions averaged $127 to $135 per month as of that time.

Enrollment is automatic for employees, with contributions being made through payroll deductions. Each employee account is portable and can be moved from one job to another.

All Oregon employers, regardless of employee size, must facilitate the State’s program for their employees if they do not offer an employer-sponsored retirement plan. The plan is working with small employers to make the process as simple as possible.

CalSavers

CalSavers is available to California workers whose employers do not offer a workplace retirement plan, self-employed individuals, and others who want to increase their savings. Plan participants contribute to an Individual Retirement Account (IRA) that belongs to them.

California employers with more than 50 employees must register with CalSavers by June 30, 2021 if they do not already sponsor a retirement plan. Registration is available to all California employers with at least five employees.

The CalSavers program opened statewide in July 2019 and had $4.3 million in assets as of mid-2020. On average, participating employees contribute $105 to $120 monthly. Like the Oregon plan, the default savings rate is 5% of the employee’s pay and employees are automatically enrolled after 30 days of employment. They can stop, restart or transfer plan participation at any time if they change employers.

CalSavers Retirement Savings Program is designed to simplify employer participation with no employer fees, no fiduciary responsibility, and minimal ongoing responsibilities. Employers that fail to offer participation in the plan as required are subject to fines.

In May 2021, a federal appeals court in San Francisco dismissed a legal challenge to the CalSavers plan.

Illinois Secure Choice Retirement Savings Program

Illinois launched its Secure Choice Retirement Savings Program in 2018. It is a state-facilitated retirement program that is open to employees who work for an eligible employer as well as other employees who want to enroll independent of their employer. Approximately 32,000 Illinois employees saved $8.5 million in the first year of the Illinois Secure Choice program, according to state reports.

The Illinois Secure Choice account is a Roth IRA for the employee. The default savings rate is 5% of gross pay. Employees are automatically enrolled through payroll contributions after 30 days of employment. An employee can opt out at any time. Plan participants are charged a fee of 0.75% of assets per year ($0.75 for every $100 saved), which pays for program administration and operating expenses.

The Illinois Secure Choice had 5,544 registered employers as of May 2020. There are no fees for employers to facilitate the program and employers cannot make contributions to their employee accounts. Employers serve a limited role as a facilitator. As of November, 2019, employers with 25 or more employees that have been in business for two years or more are required to participate in the program. Employers that already offer an employer-sponsored retirement plan are exempt from this legislation.

New Jersey Secure Choice Savings

The “New Jersey Secure Choice Savings Act,” was signed into law in March 2019, with a two-year time frame scheduled to take effect in March 2021.

The Act requires employers that have been in business for two years and have 25 or more employees to participate in a retirement savings program administered through automatic payroll deductions. Private sector employees of businesses of any size are able to participate in the retirement savings program. Smaller or newer employers could join voluntarily. Failure to comply will result in fines to the employer.

Employees will be automatically enrolled at the leve of a 3% paycheck contribution. The annual contribution maximum is $6,000 for those under 50 years old, and $7,000 for those 50 or older.

Connecticut Secure Choice Savings Plan

Connecticut employers with five or more employees must offer a retirement plan to employees, and private employers with four or fewer employees may choose to do so. Employees are auto-enrolled within 120 days of employment, and employees must be notified of their rights within 30 days. Employers are not permitted to make contributions to the program.

The Connecticut Retirement Security Authority, a quasi-public agency, was formed in 2016 to oversee the program. The state estimates that as many as 600,000 employees may benefit from the plan.

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