Is the Woman Business Enterprise Certification Worth the Time and Money?

If you're a woman who owns a business you may find the woman-owned certification requirements a bit excessive - and a little overwhelming - at first. If you can get past the initial shock, you may find the benefits of certification outweigh the work required to complete certification. Some of the many important benefits to this certification include increased visibility and access to the Fortune 500 business world.

The National Women Business Owners Corporation (NWBOC), became the first private national certifier of women-owned businesses when it formed in 1995. Since then many local, state and national organizations have been created that also offer certifications to help female business owners grow their businesses and gain access to big clients.

The Benefits of Woman-Owned Certification

#1. Government Contracts

The U.S. government is one of the largest buyers of goods and services and even have set goals to help award more contracts specifically to women, which can become reliable sources of income.

Back in 2000, it became apparent that federal procurement dollars were bypassing women-owned businesses. This prompted the government's 5 percent goal of awarding government contracts to woman-owned businesses in hopes of leveling the playing field.

Since 2010, the government has been within 1 percent of reaching their 5 percent goal, but only achieved it in the 2015 fiscal year. Gaining access to government contracts is one of the many benefits of becoming a certified woman-owned business.

Last year, 5.05 percent - or $17.8 billion dollars - were contracted with women-owned small businesses. The steady incline over past years demonstrates a strong trend that the percentage of contracts with woman-owned businesses will continue to rise.

#2. Access to databases

Another benefit to being certified through an official organization is the access to databases of information. With access to lists of suppliers and procurement executives and hundreds of major U.S. corporations and federal, state, and local government entities, finding big business leads can become easy.

This also means agencies and purchasers can easily find your company since your information will be added to the database as well.

#3. Educational and Networking Opportunities

Most big organizations include educational and networking opportunities to those who have successfully received certification. This can help you learn which major corporations or government agencies are interested in the types of goods or services you supply, helping your market directly to the buyers you want to reach.

#4. Enhance Your Business Marketing

There are also many ways to use this certification to promote your company. Most certifying organizations provide a seal to use on marketing materials and retail product packaging. In addition, it can provide the opportunity to partner with other woman-owned businesses. An American Express study found that business owners who team with another business win 50% more contracts.

Before applying to become a certified woman-owned business it is important to know that ownership is not the only criteria. It's a bit more complex. The following are the criteria to be eligible for this certification:

1. A woman or multiple women must own and control at least 51.0% of the business
2. The woman owner must serve as President or CEO - if both positions exist
3. She must be active in daily management
4. She must be a U.S. citizen
5. The woman owner must have the ownership and officer position for at least 6 months

The benefits of becoming a certified Woman-Owned Business could outweigh any initial cost because the certification helps create credibility, access, and opportunities for companies that may otherwise not be available.

I spoke with Tricia Wallwork, CEO of Milo's, a producer of organic teas and other beverages. Milo's is a certified woman-owned business.

Q: Why did you get your business certified?

A: We are always looking for ways to explain the Milo's Corporate Difference. The Women Business Enterprise (WBE) certification was a great way for us to acknowledge our unique and diverse culture so our loyal fans could understand more about who we are as a company.

Q: Have you seen any benefits to being certified?

A: The WBE certification has opened many doors for Milo's through networking with other talented professionals, our customers and the fine retailers where our products are sold. During Women's History Month in March 2015, Walmart featured six women-owned businesses nationally and Milo's was one of the chosen products featured. This enabled us to reach many new customers and further tell our story, as well as meet and learn from many other dynamic WBEs.

Q: Was the certification process difficult?

A: The certification and recertification processes are not difficult but they are detailed enough to ensure that the company is truly majority owned and controlled by women and remain that way during certification.

Q: Do you believe the certification process was worth it?

A: I believe the WBE certification process was worth the time, expense and effort because it gave Milo's another way to demonstrate the Milo's Difference, network with other talented WBEs and differentiate ourselves to our customer and retailers.

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How To Know Whether Mortgage Refinancing Pays

If you took out a 7.5% mortgage in 1994 and still have it, refinancing it in a 3.5% market is a no-brainer; you don't need much analysis to know that refinancing into today's rates will pay. The only possible reason that such mortgages still exist is a marked deterioration in the borrowers' credit, in the value of the home, or in the borrower's mental capacity.

If you took out a 5.5% mortgage in 2004, the case for refinancing is not as strong but, barring deterioration of the types indicated above, it is strong enough to move with confidence.

The challenging case is when your mortgage is at 4% from 2014. This is a situation where the rate reduction might or might not be large enough to offset the costs of the refinance. This article will explain the valid approach to answering the question, and an invalid approach used by loan officers that is all too common .

Factors That Affect the Profitability of a Refinance

A refinance pays if the sum of all the costs arising from the refinance during the period you expect to have it is less than the sum of the costs of the old mortgage over the same period. Costs on only the new loan include points and other origination charges paid at closing. Costs on both the new and existing mortgage include monthly payments of principal and interest, mortgage insurance premiums if any, and lost interest on upfront and monthly costs. In both cases, tax savings and the reduction in loan balance are benefits that must be deducted from total costs.

Yes, this is a formidable list but I have made it easy for you with my refinance calculator Refinancing One FRM Into Another to Lower Net Cost. The calculator will prompt you for all the required inputs and indicate why they are needed. This calculator assumes that you have only one fixed-rate mortgage that is refinanced into another, and that you don't take any cash out of the transaction. Other refinance calculators are available for borrowers who have an adjustable rate mortgage, or a second mortgage, or want cash from the transaction. See Find a Refinance Calculator.

The calculator indicates that a borrower with a 4% 30-year mortgage that is 3 years old would benefit by refinancing it into a new 3.25% loan, and benefit even more by selecting a 15-year mortgage at 2.5%. With a loan balance of $360,000, the savings over 10 years would be about $17,000 on refinancing into a new 30-year, and about $49,000 when the new loan is for 15 years.

Don't Be Led Astray by a Spurious "Break-Even Period"

Another approach to whether or not you will save on a refinance is to calculate a break-even period - the period over which costs of the old loan and the new loan are equal. The larger the spread between the new interest rate and the rate on your existing loan, and the smaller the cost of the new loan, the shorter the break-even period. If you are confident that you will have the new mortgage longer than the break-even period, you will benefit from the refinance. My calculator shows the breakeven period, in addition to the cost comparison over the period you specify.

But beware! The break-even period is not the cost of the new loan divided by the reduction in the monthly mortgage payment. Many loan officers use this rule of thumb, which completely ignores how rapidly you pay off the new loan as opposed to the old one. Borrowers following this rule would never refinance into a shorter term loan because of the increase in payment, although the total benefit including the pay-down of the loan balance is substantially greater on refinancing into a 15-year loan, as indicated above. The rule of thumb does not work for any borrower who is concerned with how long they have to pay, which should be every borrower.

Combining the Refinance Analysis With Mortgage Shopping

The answers generated by refinance calculators are no better than the current mortgage prices the user must enter to make the calculators work. The calculators on my web site were developed at a time when users were on their own in finding the prices at which they could borrow in the current market. But that is no longer the case. You can now price shop and assess whether a refinance will pay in a single operation on my site.

The "Refinance Mortgage Shoppers" calculator gives you an input form that includes all the factors that affect your mortgage price in today's market, and also includes information about your current mortgage. The calculator will show the costs over the period you stipulate, using the best prices quoted by the lenders who report their prices to my site, on all the new loans for which you qualify, and also for your existing mortgage if you retain it. You can thus shop for the best terms on a new loan, and you can select the new loan type that generates the largest saving over your current loan.

For more information on refinancing or paying off your mortgage faster, visit my website The Mortgage Professor.

9 Cartoons To Help You Avoid Any Actual Work

If you want to continue avoiding any actual work, follow the sage advice in these nine cartoons.

#1 Got a lot of email? Try this is revolutionary strategy.

Sarah Cooper / TheCooperReview.com  

#2 Email reminders are a great way to surprise yourself.

Sarah Cooper / TheCooperReview.com  

#3 It’s important you’re comfortable at work, no matter how ridiculous you look.

Sarah Cooper / TheCooperReview.com  

#4 Open office layouts are a great way to increase collaboration and misery.

Sarah Cooper / TheCooperReview.com  

#5 In the corporate world, you learn to live with regret.

Sarah Cooper / TheCooperReview.com  

#6 Boost team morale with a team building event.

Sarah Cooper / TheCooperReview.com  

#7 Be realistic about your productivity goals. 

Sarah Cooper / TheCooperReview.com  

#8 Sometimes to get more productive you have to waste time trying to get more productive.

Sarah Cooper / TheCooperReview.com  

#9 Get your morning meetings off to a great start. 

Sarah Cooper / TheCooperReview.com  

I post new humor every week! Sign up for my free email newsletter to get updates.

Sarah Cooper is a writer, comedian and creator of TheCooperReview.com. Her first book, 100 Tricks to Appear Smart in Meetings comes out October 4th.

Women in Business Q&A: Margaret Riordan, The Blanchard Collective

Margaret Riordan

Margaret Riordan heads up the Blanchard Collective, an eclectic group of 18 European dealers, who between them, have a mixed array of 17th to 21st century English, Continental, Oriental and American furniture and decorative items. The idea is to provide a one-stop shop for interior
decorators and private clients alike.

Her journey to this position has been one of mixed fortunes. Trained as a teacher, she taught English in Istanbul for a year before taking up a post in London. A need for change lead to a year as a motorcycle messenger, and then to setting up a cookware business. However, when the opportunity to join an existing antique business presented itself, there was no looking back. Mentored by a dealer with an excellent 'eye', she promoted his business, and then when he gave up the lease, she opened a Collective on her own behalf with his blessing.

How has your life experience made you the leader you are today?
For me, talk of leadership necessarily involves a team. A leader needs his/her team, a team their leader. It is an organic process growing from a breadth of work/life experiences which, approached with an open mind, form the basis for developing sound character judgment.

I started my working life as a teacher, was a motorbike messenger for a year, ran a cookware business. Growing up I was surrounded by antiques because my grandmother was a serious collector and this clearly inspired me when the opportunity arose to get involved in the business and to start building the right team to launch our Collective of 25 antiques dealers and interior designers located just outside the historic city of Marlborough.

What have the highlights and challenges been during your tenure at The Blanchard Collective?
There are daily highs and lows in setting up and running a business. For me, the biggest challenge was getting the banks to take me and my business plan seriously with a view to finance. 10 years on the biggest highlight has been the realization that I did it without them! That has been very empowering and I hope will inspire would be women entrepreneurs not to take no for an answer.

On a more general note. The main challenge is not to get bogged down in the very necessary, but time consuming day to day admin which running a business entails. I find it really important to keep looking outward, and to let other interests play a part. Living life in various compartments does not work for me.

The highlights are invariably people related. There is huge enjoyment in establishing a rapport with a client, and getting involved in their project, either directly with them, or, in consultation with their decorator. Bringing together an interior is personal, involving as it does a reflection of the client's preferences and interests, and is immensely satisfying.

What advice can you offer to women who want a career in your industry?
The antique business is not a career decision, it is a way of life. Once it is in your blood you never retire.

Speaking generally though, any career in retailing demands a liking for people, an enormous amount of patience, passion for the product and attention to detail. When it is your own business, the most important lesson is to let your passion carry you forward, and to never give up.

How do you maintain a work/life balance?
In my business, work and life are as one. There is so much satisfaction in dealing with wonderfully made & beautiful objects, and in creating interiors with unusual items which can be found in unexpected places. The real joy is in being aware of all manner of outside stimuli which can play a part in your work experience. Whether it be travel, museum & art gallery visits, shopping trips, all experience is a personal investment in the business. My husband John is my partner in life and the business and although we do manage an essential holiday in Italy each year at the same wonderful hotel, our life together is enmeshed in the business.

What do you think is the biggest issue for women in the workplace?
I think that the biggest issue for women in the workplace is an overblown awareness of being a 'woman in the workplace'. Just be yourself, enjoy working out the problems that present themselves, and just get on with it.

How has mentorship made a difference in your professional and personal life?
Mentorship comes in many guises, from friends, workplace colleagues, chance encounters. Just be open to experience, and take from it what is relevant. My most important mentor has been Orlando Harris, for whom I worked for several years promoting his Collective. He was one of the earliest exponents of the 'Dealers' Collective' concept, and the grounding I received whilst working for him has been invaluable in my own business.

Which other female leaders do you admire and why?
Frances Morris, Director of Tate Modern for her controlled enthusiasm, and ability to bring together so may creative minds.

Angelina Jolie who leads by self-effacing example.

Karen Brady for her business acumen.

Theresa May, British Prime Minister for her practical and commonsense approach, and as someone who is not afraid of taking the hard decisions.

The Queen who is always so well briefed, for her dignity and her dedication.

Here's How America Can Solve Its Steel Crisis

China is gorging itself on steelmaking. It is forging so much steel that the entire world doesn’t need that much steel.

Companies in the United States and Europe, and unions like mine, the United Steelworkers, have spent untold millions of dollars to secure tariffs on imports of this improperly government-subsidized steel. Still China won’t stop. Diplomats have elicited promises from Chinese officials that no new mills will be constructed. Still they are. Chinese federal officials have written repeated five-year plans in which new mills are banned. Yet they are built.

All of the dog-eared methods for dealing with this global crisis in steel have failed. So American steel executives and steelworkers and hundreds of thousands of other workers whose jobs depend on steel must hope that President Barack Obama used his private meeting with China’s President XI Jinping Saturday to press for a novel solution. Because on this Labor Day, 14,500 American steelworkers and approximately 91,000 workers whose jobs depend on steel are out of work because China won’t stop making too much steel. 

A new report on the crisis, titled “Overcapacity in Steel, China’s Role in a Global Problem,” by the Duke University Center on Globalization, Governance & Competitiveness flatly concludes that existing policies to stop China from building excessive steel capacity have failed.

Since 2007, China has added 552 million metric tons of steel capacity – an amount that is equivalent to seven times the total U.S. steel production in 2015. China did this while repeatedly promising to cut production. China did this while the United States actually did cut production, partly because China exported to the United States illegitimately subsidized, and therefore underpriced, steel.

That forced the closure or partial closure of U.S. mills, the layoffs of thousands of skilled American workers, the destruction of communities’ tax bases and the threat to national security as U.S. steelmaking capacity contracted.

Although China, the world’s largest net exporter of steel, knows it makes too much steel and has repeatedly pledged to cut back, it plans to add another 41 million metric tons of capacity by 2017, with mills that will provide 28 million metric tons already under construction.

None of this would make sense in a capitalist, market-driven system. But that’s not the system Chinese steel companies operate in. Chinese mills don’t have to make a profit. Many are small, inefficient and highly polluting. They receive massive subsidies from the federal and local governments in the form of low or no-interest loans, free land, cash grants, tax reductions and exemptions and preferential access to raw materials including below market prices.

That’s all fine if the steel is sold within China. But those subsidies violate international trade rules when the steel is exported. 

These are the kinds of improper subsidies that enable American and European companies to get tariffs imposed. But securing those penalties requires companies and unions to pay millions to trade law experts and to provide proof that companies have lost profits and workers have lost jobs. So Americans must bleed both red and green before they might see limited relief.

The Duke report suggests that part of the problem is that market economies like those in the United States and Europe are dealing with a massive non-market economy like China and expecting the rules to be the same. They just aren’t.

Simply declaring that China is a market economy, which is what China wants, would weaken America’s and Europe’s ability to combat the problems of overcapacity.  For example, the declaration would complicate securing tariffs, the tool American steel companies need to continue to compete when Chinese companies receive improper subsidies.

The Duke report authors recommend instead delaying action on China’s request for market economy status until China’s economic behavior is demonstrably consistent with market principles.

The authors of the Duke report also suggest international trade officials consider new tools for dealing with trade disputes because the old ones have proved futile in resolving the global conflict with China over its unrelenting overcapacity in steel, aluminum and other commodities.

For example, under the current regime, steel companies or unions must prove serious injury to receive relief. The report suggests: “changing the burden of proof upon a finding by the World Trade Organization (WTO) dispute settlement panel of a prohibited trade-related practice, or non-compliance with previous rulings by the WTO.”

It also proposes multilateral environmental agreements with strict pollution limits. Under these deals, companies in places like the United States and Europe that must comply with strong pollution standards would not be placed at an international disadvantage as a result, and the environment would benefit as well. 

In addition to the family-supporting steelworker jobs across this country that would be saved by innovative intervention to solve this crisis, at stake as well are many other jobs and the quality of jobs.

The Congressional Steel Caucus wrote President Obama before he left last week on his trip to Hangzhou for the G-20 Summit asking that he secure the cooperation of China and pointing out the large number of downstream jobs that are dependent on steel.

Also last week, the Economic Policy Institute issued a report titled “Union Decline Lowers Wages of Nonunion Workers.” It explained that the ability of union workers to boost nonunion workers’ pay weakened as the percentage of private-sector workers in unions fell from about 33 percent in the 1950s to about 5 percent today.

The EPI researchers found that nonunion private sector men with a high school diploma or less education would receive weekly wages approximately 9 percent higher if union density had remained at 1979 levels. That’s an extra $3,172 a year.

Many steelworkers are union workers. If those jobs disappear, that would mean fewer family-supporting private sector union jobs. And that would mean an even weaker lift to everyone else’s wages.

America has always been innovative. Now it must innovate on trade rules to save its steel industry, its steel jobs and all those jobs that are dependent on steel jobs. 

Trump Pays Penalty For Ethically Questionable Political Donation

Donald Trump paid a $2,500 IRS fine this year for making a $25,000 gift from his charity to support the re-election of Florida Attorney General Pam Bondi three years ago, David Fahrenthold of The Washington Post reports.

In September 2013, three days before Trump made his donation to a political action committee supporting Bondi, the Orlando Sentinel reported that her office was considering joining the state of New York in a lawsuit against Trump University, which sold real estate seminars and was not, as the name suggested, an accredited academic institution. Ultimately, Bondi did not join New York’s case.

As a nonprofit, Trump’s charity cannot make political gifts. The Post reported earlier this year that the Trump Foundation listed the gift as going to a Kansas group with a similar name in IRS filings. That, Fahrenthold points out, meant that “the prohibited gift was, in effect, replaced with an innocent-sounding but nonexistent donation.”

Trump also donated $35,000 to support former Texas Attorney General Greg Abbott’s campaign for governor in 2013. As attorney general, Abbott decided in 2010 not to pursue a false advertising case against Trump U.

Jeffrey McConney, senior vice president at the Trump Organization, told the Post this week that the inaccurate record of a donation to the Kansas group “was just an honest mistake... It wasn’t done intentionally to hide a political donation, it was just an error.”

Trump said he donated to support Bondi’s re-election because she “is a fabulous representative of the people — Florida is lucky to have her.” Bondi has endorsed Trump for president and spoke at the Republican National Convention in Cleveland this summer.

Internal company documents show that Trump University employees were instructed to emotionally manipulate people into buying classes. According to court testimony, Trump U. employees pressured customers to max out their credit cards. Trump’s lawyers and campaign have denied the allegations.

McConney did not immediately respond to a request for comment for this story.

Editor’s note: Donald Trump regularly incites political violence and is a serial liar, rampant xenophobe, racist, misogynist and birther who has repeatedly pledged to ban all Muslims — 1.6 billion members of an entire religion — from entering the U.S.

6 Things Entrepreneurs Can Learn From LeBron James

The name LeBron James is synonymous with the National Basketball Association, and with the sport of basketball in general.

The current front man of the Cleveland Cavaliers has an extensive and distinguished career under his belt, packed with championships, titles and several individual honors.

James is one of the greatest basketball talents the world has ever seen. After watching him on the court, it is evident that we can learn quite a bit about the game and the value of hard work from his consistently superb performances.

Most people can at least gain an appreciation for the beautiful game of basketball after witnessing a player of James' caliber effortlessly dribble around another team and ring in buckets of points. But the NBA superstar also offers lessons to entrepreneurs.

Here are six bits of wisdom entrepreneurs owners can learn from LeBron James.

1. Marketability
The story of James's rise to basketball stardom is well known. Already a sought-after NBA prospect in his high school years, he'd been breaking records and bagging athletic distinctions well before he set foot in an official NBA game.

What's critical about James's high school performance is the leverage it gave him going into the NBA draft and his rookie season.

James was the No. 1 draft pick because of his hard work and his ability to capitalize on his natural talent.

However, the point here isn't that he worked hard (although he did), but that he made himself desirable as a prospective player.

By surpassing expectations and earning praise in high school, James made himself marketable to professional teams looking for young talent.

Businesses can learn from James's pre-professional career that marketability and branding are the keys to long-term success.

2. Adaptability
Perhaps the most memorable stint of James's long career is his time with his home state's Cleveland Cavaliers (the first and the second time).

It's fair to say that his time with the flashier Miami Heat is equally memorable, but was more infamous than famous. Briefly ignoring his detractors, let's look at the move objectively.

Sure, LeBron may have left behind his teammates, fans and even his hometown in his journey to South Beach, but the move never diminished his ability to churn out excellent performances.

James's time with the Heat included two back-to-back championships, a testament to his adaptability.

Entrepreneurs can learn from James the value of adjusting their business approaches to different audiences, so that they can maintain success in marketing.

3. Tenacity
Despite all the hate he got for moving to Miami, the fact remains that switching teams showed a desire for success on James's part.

The consecutive championships he won in Florida were the result of James's refusal to pass up any chance he had to win a title.

Although he had had previous success with the Cavs, he seized the opportunity to move so that he could achieve greater success and further spread his image as a star basketball player.

In the same way, businesses and entrepreneurs can learn to take risks and be willing to pivot in order to spread awareness of their brand and ultimately become more successful.

4. Loyalty
Now that the criticisms of LeBron for his betrayal of Cleveland are over, we get to talk about the exciting part -- his return to the Cavs.

All was forgiven when James made his decision to return to his former team, his former fans and his hometown.

James's reappearance on the Cleveland roster was more than just a gesture of kindness to the people he'd left behind a few years earlier; he came back because it was the right thing to do.

As a native of Ohio, LeBron James was and is beloved on the Cavs' starting lineup. James was a homegrown idol for the native Cavs fans.

That's why his move to Miami was so widely disparaged, especially by his former biggest supporters.

Coming back to Cleveland not only restored the trust of the Cavs fans; it also demonstrated a deep loyalty between the player and his advocates.

Businesses can learn from James's actions that abandoning their earliest adopters in favor of bigger crowds may not always be the best for their image.

5. Consistency
Perhaps what is most impressive about James is his consistently high performances. As a rookie, and on the Cavs and Heat rosters, James has always set a high standard for himself and the other players on the court.

In his two terms with Cleveland and his time with Miami, he never became complacent. He continued to work hard through it all; three NBA championships and numerous individual and first-team honors are ample proof of this.

Entrepreneurs can learn from James the importance of continuously doing their best and never using current success as an excuse to stop delivering to their loyal audience.

6. Collaboration
We could analyze the nuances of LeBron's game for hours, but the final lesson we can glean doesn't come from what he does on the court; it comes from what he says off the court. Recently, James named Gregg Popovich the greatest NBA coach of all time.

Popovich is a man who has denied him two NBA championships, so it may come as a surprise that James praises him.

However, his applauding of the Spurs' coach in spite of previous rivalries shows great maturity on James's part. It also establishes LeBron James as an athlete who values the dedication NBA coaches so often bring to the game.

From James's respect for rival coaches, businesses can learn the power of collaboration.

"It would be pretty amazing to be able to actually play for the greatest NBA coach of all time," James told USA Today.

Popovich will replace Mike Krzyzewski as the coach of Team USA after these Olympics. For James, this will be an opportunity to be around another coaching legend.

And even the best know that they can always get better and learn. While we may not have access to Coach K directly -- today, you can read books and articles, or watch coaching videos from the world's best coaches at your fingertips.

So while everyone would expect LeBron James to be able to teach us a thing or two about basketball, who would have expected that he could teach us so much about business?