June 2020 – Dickinson Law's Inside Entrepreneurship Law Blog

Bostock v. Clayton County: What the Newest Anti-Discrimination Court Decision Means for Businesses

By: Aaron Holland

You may have seen through the news or your social media that the Supreme Court recently issued a decision on Bostock v. Clayton County and two related cases, that collectively answered one big question: whether an employer can fire or refuse to hire someone based on their sexual orientation or gender identity. In a 6-3 decision, it was made clear that this kind of discrimination is unlawful under Title VII of the Civil Rights Act of 1964. This decision might mean big changes for many employers, especially to diversity and anti-discrimination training in the workplace.

What the Case detailed…

Gerald Bostock, a gay man, was fired from his position as a welfare services coordinator with Clayton County, Georgia. After a decade of positive performance, his employment was terminated in an evaluation for “conduct unbecoming of an employee.” Ironically, this evaluation came shortly after his participation in a softball league inclusive of gay members. Bostock argued that he was fired for being gay and that this was a violation of the 1964 Civil Rights Act.

…and the Decision that came in.

The Court held that an employer who fires an individual for being homosexual or transgender violates the law. The opinion was based on the words from Title VII, “…discriminate…because of such individual’s…sex.”

The decision to incorporate sexual orientation or gender identity into the “because of sex” category was largely based on the idea that an employer cannot discriminate on these bases without taking the sex of the individual into account. As Justice Neil Gorsuch wrote, “…if changing the employee’s sex would have yielded a different choice by the employer ─ a statutory violation has occurred.” In more rudimentary terms, the choice of employment cannot depend on biological anatomy.

This decision comes at a time when divisiveness seems to be running rampant, but many employers are doing everything they can to overcome exclusion and focus on diversity for their business’s benefit. The Court’s determination exhibits how workplace inclusion has been a strong theme since the 1960s and continues to shape businesses today.

what this means for employers

In short, this means that failing or refusing to hire or discharging any individual because of their sexual orientation or gender identity is a violation of federal law. A violation of this type could lead to significant penalties, including a fine up to $300,000.

If your business is in one of the 28 states, or D.C., that already has protections against sexual orientation or gender identity discrimination, then this should not truly change anything about your operations. If not, and this federal law is the first to cover gay and transgender discrimination rights in your state, then you may need to update policies and training.

The ruling, in this case, impacts businesses all the way from the top-level down to the lowest level of employees. A revision of your EEO policy may be necessary to reflect that sexual orientation and gender identity will not affect employment. Management training should be updated to incorporate and reflect the new (or possibly existing) non-discrimination policies in regard to sexual orientation and gender identity.

While the Bostock case opinion speaks more to the actions of an employer, Title VII expands into more than just a boss’s roll in discrimination. Non-discrimination policies should also be modified to include enforcement against public employee discrimination based on sexual orientation or gender identity. These policies should include robust reporting sections for anyone that feels the need to report possible situations of discrimination. If you have an employee handbook, it should be updated and re-distributed to all employees. As as supplement to that update, you should educate your workforce via additional training so that everyone recognizes and understands bias and discrimination in the workplace.

Notifying all employees, especially management, of this amended policy is essential to creating an atmosphere that is inclusive to all individuals. Diversity and inclusiveness are necessities for a thriving business, and now more than ever, these policies are essential to protecting individuals. Decisions like the one the Supreme Court made last week are working to combat this division.

one final caution

Title VII does not cover all individuals in the workplace from discrimination. Any business with fewer than 15 employees is not subject to this federal anti-discrimination law. Independent contractors and workers hired through temp agencies are also typically not protected from discrimination in the workplace under Title VII. However, many state legislatures have filled in the gaps where Title VII lacks and provided that discrimination in the workplace, whether by employers, fellow employees, or clients/customers, is not tolerated.

The bottom line is you should do the right thing and ensure your employees do too.

Aaron Holland, at the time of this post, is a rising 2L at Penn State Dickinson Law. He currently serves as the Event Coordinator for the Federalist Society and is interested in entrepreneurship law and litigation. Aaron is a devoted husband, a father of a one-year-old daughter, and a United States Marine.

SOURCES:

https://www.supremecourt.gov/opinions/19pdf/17-1618_hfci.pdf

https://www.eeoc.gov

https://www.hrc.org/state-maps/employment

https://www.scotusblog.com/2020/06/opinion-analysis-federal-employment-discrimination-law-protects-gay-and-transgender-employees/

https://fortune.com/2020/06/15/supreme-court-lgbtq-workers-discrimination-employment-scotus-bostock-v-county-of-georgia/

https://www.ncsl.org/research/labor-and-employment/discrimination-employment.aspx

PHOTO SOURCES:

https://www.theflagshop.co.uk/equality-flag-5ft-x-3ft-blue.html

https://www.corporatecomplianceinsights.com/employee-handbooks-101/

Black Entrepreneurs – We All Need to Support Them Through Covid-19 and Beyond

By: Rachel Tunney & Samantha Prince

It is time. It’s been time. As Americans, we need to support black entrepreneurs who are already in business, as well as do more to promote and assist black-owned start-ups. We need this to happen.

The numbers confirm the urgency. Lauren Leatherby of the New York Times reports that black business owners are hurting disproportionately as a result of Covid-19’s impact on all businesses. Professor Robert W. Fairlie’s recent population survey indicates that a higher share of black-owned businesses (41%) was forced to close their doors during mandatory lockdowns as compared to white-owned businesses (17%). Why? Lack of funding through loans or the Payroll Protection Plan is part of the blame right now, but the black entrepreneur’s ability to get financing to support their endeavors has always been a prevalent problem.

Black-Owned businesses are more likely to suffer financial challenges

In the 2019 Small Business Credit Survey – Report on Nonemployer Firms, (Federal Reserve Bank of New York), 76% of black-owned businesses surveyed reported having financial challenges. (See chart.) Financial challenges include paying operating expenses, credit availability, making payments on debt, and purchasing inventory or supplies to fulfill contracts.

Additionally, only 17% of these black-owned businesses reported that their funding needs have been met. Let that sink in! Before Covid, only 17% of the black-owned businesses in this survey reported that their financing needs were met.

From a return-on-investment standpoint, a capitalistic standpoint, and a purely ethical standpoint, this truth is unacceptable. This has to change. Our government, organizations, banks, companies, and individuals who loan, invest, and otherwise finance businesses need to wake up and make every effort to ensure black-owned businesses meet basic financing needs.

We are fortunate that here in Pennsylvania, the Pennsylvania Department of Community and Economic Development has specific programs and funding to ensure that financial assistance reaches minority-owned and woman-owned businesses. So note: if you are a black entrepreneur in another state, check and you may have similar assistance waiting for you!

Black-Owned businesses struggle for other opportunities

Funding is not the only area where black-owned businesses are getting cheated. A recent Pennsylvania report shows obvious disparities between small diverse businesses and non-diverse when it comes to purchasing, and the service providers hired, by the Commonwealth. (We encourage you to peruse this 700+ page report as the numbers are embarrassing.) As a result of this study, Governor Tom Wolf established the Pennsylvania Bureau of Diversity, Inclusion, and Small Business Opportunity to show the government’s commitment to implementing policies and programs that will help improve the quality and quantity of opportunities for small diverse businesses.

For Pennsylvania black entrepreneurs, this agency’s website has helpful information on how to get your business in an advantageous position to sell products or your services to the Commonwealth.

Enough. here’s how you can help

We all need to support black-owned businesses. In a recent CNN Business article, Steven Jumper, co-founder of Ghost Note, and Ben Cohen, co-founder of Ben & Jerry’s, articulated a great way for current business owners to support the cause: “Here is our call to action for American businesses ready to join the fight against systemic racism. SUPPORT BLACK ENTREPRENEURS.”

Support doesn’t just mean money. Support comes from your hiring practices, having black representation in all aspects of the business, junior and senior levels alike. This blog has an article about just that located here.

Support comes from your contracting practices. Who are your vendors? Demand that this world provide more funding for black-owned businesses. For those who can afford it, perhaps provide that funding yourself. Use your business’s position for justice. And empathize – remember when you were down? Low on cash? Did someone help you back in the day? It is time for you to extend your hand to your black business neighbor. Mentorship is a powerful tool.

Who is out there to help black entrepreneurs? Start here. I’m providing some suggested sites of places for black entrepreneurs to seek advice, help, and wisdom. This list is by no means exhaustive:

Black Founders – “Our mission is to increase the number of black entrepreneurs in technology.”

Black Girl Ventures – “A Culturally converging ecosystem igniting economic security, civic engagement, and hyperlocal infrastructure at the intersection of STEM education and entrepreneurship for Black and Brown women-identifying founders, funders, and veterans.”

Byblack – “Building the best directory to find & support Black entrepreneurs.”

Code2040.org – “Nonprofit activating, connecting, and mobilizing the largest racial equity community in tech to dismantle the structural barriers that prevent the full participation and leadership of Black and Latinx technologists in the innovation economy.”

Techstars Foundation – “Actively cultivate startup culture at the local level, growing communities of entrepreneurs through life events, mentorship, and education to create a more sustainable and inclusive world.”

There are numerous other organizations that can and would like to help! Seek them out for funding, training, or marketing.

For all other business owners- let’s do better. We must do better.

Rachel Tunney, at the time of this post, is a rising 3L at Penn State Dickinson Law. Formerly a professional New York City dancer/singer, Rachel now is interested in corporate litigation and has accepted a clerkship in the Delaware Superior Court for after graduation. Rachel currently serves as the Dickinson Law Student Representative for the Pennsylvania Bar Association and is a Comments Editor of the Dickinson Law Review. She is also Professor Prince’s Research Assistant, a position she enjoys immensely.

Photo Sources:

7 Websites that help you find black-owned businesses

From Brick and Mortar to Online: Preparing to Handle Future Pandemics

By: Mari Boyle

The coronavirus pandemic has forced businesses across industries to quickly adapt and change the way they operate. For small businesses with limited resources, this transition can be increasingly challenging. As state governments begin to lift some control measures, experts advise preparing for a potential second wave of coronavirus. For small businesses especially, it is important to prepare for this possibility. One of the ways small businesses can prepare is by establishing an online presence. Irrespective of whether a subsequent second wave of coronavirus occurs, small businesses can grow their business by transitioning solely from a brick and mortar model to operating online as well. This blog post will help you begin that transition by discussing how you can move your business online and issues to be aware of while operating in cyberspace.

taking your business online

Create a Website

The first step, particularly for small businesses looking to sell goods online, is creating a website. Through a website, businesses can continue selling their products and communicate to customers information about their business and operation plans throughout the different transitional phases of COVID-19. There are several affordable website design tools available to small business owners. Among the most popular include WordPress. This guide provides a comprehensive, step-by-step tutorial for how to set up your first website. It covers the important topics of registering the name of your website (domain name), designing your website, and other resources for building a website.

eCommerce

If you are looking to sell goods online, you have several options. You can create your own eCommerce store on your website and sell products through that medium. This gives you complete control over the website, design, and functionality. You can also hire someone to make your website for you. It’s easy to find website developers on sites like fiverr.com, upwork.com and freelancer.com. While hiring a developer will cost you some money, it will save you time that you can use on running your business.

Another option is to use hosted eCommerce platforms, such as Shopify. An advantage to this option is that a majority of the work is done for you and you can customize your site through pre-made templates. A third option is selling through marketplace sites such as Amazon, eBay, or Etsy. While this option allows for the least personal customization, it reaches a greater audience.

Email Marketing

Staying connected with your customers is important and can be done by text or email. There are several platforms that allow you to communicate with customers effectively through emails, such as Constant Contact, Vertical Response, and Mail Chimp. However, it is important to be aware of, and abide by, laws regulating commercial emails in the process. This post covers such laws, such as the CAN-SPAM Act which regulates commercial communications, in a later section.

Social Media

Meet your customers where they are by establishing or increasing your social media presence. Social media provides an additional low-cost platform for businesses to communicate and interact with customers. Small businesses can use these platforms to notify customers about changes in operations and direct them to your website. Businesses can bolster their social media presence by posting often and announcing sales or discounts.

Issues to be aware of…

Taxes

When moving your business online, it is important to understand your tax liabilities.

In the past, online sellers only had to collect the applicable taxes in the state where the business maintained a physical presence. However, in 2018, the Supreme Court ruled that a business must also collect taxes in states where the business has a “nexus.”

“Nexus” is a term used to describe a particular connection between the online seller and the state. If you are selling online to someone in another state and a “nexus” is found, you have to comply with that state’s tax laws and collect the applicable taxes. How “nexus” is defined, and the amount of the tax differs across states. Several states have established specific criteria as to when a business has established a “nexus” with that state through online sales. It is important to know how much you are selling, where you are selling, and the applicable tax. Many states have a de minimis rule that holds that unless you sell a certain amount to their residents, you do not have to remit sales tax to the state. All of the different standards can be challenging, so consider consulting a tax professional or find software to help you navigate the different tax laws. If you use an e-commerce platform, the platform will likely do this for you.

Data Privacy

Another concern of customers and business owners alike is data privacy. In operating a business online, business owners should be aware of state and federal data privacy laws to ensure compliance. For example, the Children’s Online Privacy Protection Act (COPPA) has specific requirements if your website or online service collects personal information from those under the age of 13. For more information on COPPA, see our blog post here.

Many states require businesses to take certain measures to protect the personal information they collect. In California, the California Consumer Privacy Act (CCPA), which went into effect this year, made robust changes to the state’s privacy laws in an effort to better protect consumer privacy rights. If you gather data from anyone in Europe, you must learn about the EU’s General Data Protection Legislation (GDPR). See our post here.

Additionally, most states have breach notification laws that require businesses to notify certain individuals in the event of unauthorized access to personal information. Businesses establishing an online presence should ensure their privacy policies are updated to comply with applicable state laws and know what data is being collected by their business.

Cybersecurity

Along with data privacy, of equal importance in moving online is protecting your business against cyberattacks.

According to the U.S. Small Business Administration, small businesses are often targets of cyberattacks because “they have the information that cybercriminals want, and they typically lack the security infrastructure or larger businesses.”

The most common types of cyberattacks include (1) Malware, software designed to cause damage to a network, (2) Viruses, harmful programs that spread from computer to connected computer, and (3) Phishing, which uses emails or websites to infect a computer with malware or a virus. In moving your business online, being proactive in protecting your business against cyber attacks can reduce your risk of becoming a victim. Some places to start include:

· Training your employees to spot phishing emails, use good browsing practices, and create strong passwords.

· Use antivirus software and update it regularly.

· Secure your Wi-Fi network by making sure it is password-protected, encrypted, and hidden through a Service Set Identified (SSID) For more ways you can protect your business from cyberattacks, take a look at this checklist.

CAN-SPAM

Mass communications can be a great way to reach your customers. However, when your emails or texts contain commercial content they must comply with the CAN-SPAM act. Briefly, the CAN-SPAM act has certain rules for emails that advertise or promote a product or service. Some of the rules include:

· Don’t Be Deceptive. The header information (who the email is from) must accurately identify the person or business that sent the email. The subject line must also accurately reflect the content of the message

· Do Disclose. You must disclose clearly and conspicuously that the email is an advertisement. You must also notify the recipient that they can opt-out of receiving future emails and how to do so.

Of note: This is not a comprehensive list of everything the CAN-SPAM act requires. For more information on what is required or prohibited by the CAN-SPAM act, see this guide.

Moving your business online gives you a relatively cost-effect way to grow your business without purchasing another physical storefront. In the face of the coronavirus pandemic, establishing an online presence can minimize the negative impact the pandemic has on your business and prepare your business for a potential second wave of coronavirus or whatever else may come.

Mari Boyle, at the time of this post, is a rising third-year student at Penn State Dickinson Law. Mari is from Pittsburgh, Pennsylvania and is interested in corporate law and litigation. Mari currently serves as President for the Business Law Society and as a Senior Editor of the Dickinson Law Review.

Sources:

https://www.ftc.gov/system/files/attachments/cybersecurity-basics/cybersecurity_sb_cyber-basics.pdf

https://www.ftc.gov/tips-advice/business-center/guidance/can-spam-act-compliance-guide-business

https://www.sba.gov/blog/5-ways-start-selling-online

What eCommerce Startups Need to Know About Online Sales Tax

https://www.solanosbdc.org/sites/default/files/Moving%20Your%20Biz%20Online%20Rough.pdf

https://www.wpbeginner.com/beginners-guide/the-ultimate-coronavirus-small-business-guide-wordpress-tools-for-remote-work/

https://www.wpbeginner.com/guides/

https://www.sba.gov/business-guide/manage-your-business/stay-safe-cybersecurity-threats

https://www.fcc.gov/general/cybersecurity-small-business

https://sites.psu.edu/entrepreneurshiplaw/2020/06/08/a-beginners-guide to complying-with-coppa

https://oag.ca.gov/privacy/ccpa

https://www.forbes.com/sites/kellyphillipserb/2019/10/02/new-sales-tax-rules-take-effective-this-week-in-more-than-a-dozen-states/#4ac097075cfb

Image Sources:

https://www.makdigitaldesign.com/ecommerce/10-tips-too-increase-sales-and-efficiency-of-your-ecommerce-store

How to Create A Website From Scratch: The Beginner’s Guide

https://www.cpomagazine.com/data-protection/the-future-of-data-privacy-corporate-compliance-in-a-post-gdpr-global-market/

A Beginners Guide to Complying with COPPA

By: Ashli Lyric Jones

As technology is advancing, children have the ability to access most websites, apps, and other technology with the click of a button. This access has given companies the ability to market directly towards children. Companies such as Youtube, TikTok, and Apple have been successful at appealing to children and adults of all ages. But with great success comes great responsibility and restrictions. And this responsibility needs to be taken seriously. Note that Google and Youtube violated COPPA and had to pay $170M.

When it comes to the collection of personal information from children under 13, the Children’s Online Privacy Protection Act (COPPA) puts parents in control. The Federal Trade Commission (FTC) enforces COPPA, which spells out what operators of websites and online services must do to protect children’s privacy and safety online. The following list should serve as a guide for businesses that must comply with the COPPA.

step 1: Determine if coppa applies to your business

Does your website or online service collect personal information from kids under 13? If so, it is likely that COPPA applies to you. To be more specific, you must comply with COPPA if you meet any of the following criteria:

Your website or online service is directed to children under 13 and you collect personal information from them.
Your website or online service is directed to children under 13 and you let others collect personal information from them.
Your website or online service is directed to a general audience, but you have actual knowledge that you collect personal information from children under 13.
Your company runs an ad network or plug-in, for example, and you have actual knowledge that you collect personal information from users of a website or service directed to children under 13.

The term “website” is defined broadly under COPPA. In addition to traditional websites, this Rule applies to:

mobile apps that send or receive information online (like network-connected games, social networking apps, or apps that deliver behaviorally-targeted ads)
internet-enabled gaming platforms
plug-ins
advertising networks
internet-enabled location-based services
voice-over-internet protocol services
connected toys or other Internet of Things devices

step 2: post a privacy policy that complies with coppa

Once you have determined that COPPA applies to your business, the next step is to post a privacy policy that is clear and comprehensive. This notice must describe how personal information is being collected online from kids under 13 and how it is being used. The notice must also describe the practices of any other services collecting personal information on your site — for example, plug-ins or ad networks.

A link to your privacy policy should be included on your homepage and anywhere you collect personal information from children. Additionally, if you operate a site or service directed to a general audience, but have a separate section for kids, you must post a link to your privacy policy on the homepage of the kids’ part of your site or service.

step 3: notify parents directly about your data collection practices

Under COPPA, you are required to give parents “direct notice” of your information practices before collecting information from their kids. The notice must tell parents:

that you collected their online contact information for the purpose of getting their consent;
that you want to collect personal information from their child;
that their consent is required for the collection, use, and disclosure of the information;
the specific personal information you want to collect and how it might be disclosed to others;
a link to your online privacy policy;
how the parent can give their consent; and
that if the parent doesn’t consent within a reasonable time, you’ll delete the parent’s online contact information from your records.

Additionally, if you make a material change to the practices parents previously agreed to, you have to send an updated direct notice.

step 4: obtain parents’ verifiable consent

COPPA gives you the authority to choose a reasonable method to obtain parents’ verifiable parental consent before collecting, using, or disclosing personal information from children. Parents must have the option of allowing the collection and use of their child’s personal information without agreeing to disclose that information to third parties.

If you make any changes to your practice of collection, use, or disclosure of personal information from kids you must send the parent a new notice and get their consent. Parents may revoke their consent at any time.

step 5: protect the security of kids’ personal information

When collecting any data, it is important to establish and maintain reasonable procedures to protect the confidentiality, security, and integrity of personal information collected from children. If you minimize what information you collect from children, it will be easier to protect kids’ personal information.

conclusion

The FTC looks at a variety of factors to see if a site or service is directed to children under 13 such as the subject matter of the site or service, the use of animated characters or other child-oriented activities and incentives, the use of visual and audio content, the age of models, ads on the site or service that are directed to children, and the presence of child celebrities or celebrities who appeal to kids.

It is important to determine if COPPA applies to your business. If COPPA applies to your business, you must establish and publish a privacy policy. Next, you must notify parents directly about your data collection practices and obtain verifiable parental consent. Lastly, it is important to protect the security of kids’ personal information.

When COPPA was first drafted there was no Youtube, no Facebook, no TikTok, and no iPhone. With the advancements in technology occurring at a rapid pace, it is important to make sure you stay up to date with all of the changes regarding COPPA. You don’t want to be the next business to get fined.

This post was originally authored on March 18, 2020, and can be found here. Ashli Jones, at the time of this post, is a rising third-year law student at Penn State Dickinson Law. She is from Long Island, New York and is a graduate of Spelman College in Atlanta, Georgia. Ashli is pursuing a certificate in Entrepreneurship with an Intellectual Property and Technology concentration. She is interested in intellectual property within the entertainment law field. Ashli is the President of the Sports & Entertainment Law Society, Mentorship Chair for the Women’s Law Caucus, and Social Chair for the Black Law Students Association.

Sources:

https://www.ftc.gov/tips-advice/business-center/guidance/childrens-online-privacy-protection-rule-six-step-compliance#step1

https://www.washingtonpost.com/

https://www.ftc.gov/news-events/blogs/business-blog/2019/11/youtube-channel-owners-your-content-directed-children

Photo Source: https://termly.io/resources/articles/coppa/

Topher Reynoso | Entrepreneur of the Month | June 2020

By: Lauren Shelby

I had the pleasure of interviewing Topher Reynoso as Penn State Dickinson Law’s June Entrepreneur of the Month. A Penn State Dickinson Law graduate, Topher is the co-founder of PlanGrade, web-based software for business employers. The software simplifies employer benefits compliance and management by providing easily integrated solutions and automating different aspects of health & welfare benefits compliance plans. PlanGrade was acquired by ZenPayroll and rebranded as Gusto. Today, Gusto provides cloud-based payroll, benefits, and human resource management software for businesses. Topher serves as Gusto’s Head of Insurance and Benefits Compliance.

Don’t hesitate to Choose the “Non-traditional” path

Topher knew from the start that he wanted to take a non-traditional path after law school. In fact, he never sat for the bar. Nonetheless, he still felt the pressure to subscribe to a typical path. He was frequently questioned about his choices and worried he might be wasting his education. The pressure was intense enough to cause Topher to consider dropping out of law school during his third-year and focus on his first start-up, Wyatt’s Torching Publishing, LLC. His start-up contracted with publishers like LexisNexis to license and develop educational software that could provide students with digital textbooks.

However, he is happy that he finished his legal education. He finds the skills he developed in law school to be very applicable to co-founding and managing a business, specifically the skills of problem-solving, writing, and negotiation. In addition, he believes that non-traditional law students should consider expanding beyond legal knowledge and develop a basic understanding of engineering and programming because there is often no one on a legal team who is capable of dealing with those areas.

passion should drive you

Despite showing potential, the 2009 recession created conditions that ended Wyatt’s Torching Publishing. Despite the failure of the business, Topher doesn’t regret the experience. Rather, he viewed the knowledge and connections he gained from it as “an investment in future entrepreneurial opportunities.” Additionally, he learned the importance of having a passion for the industry of your start-up and not hesitating to give the business your all.

Topher has long held a passion for helping small businesses, specifically within the health industry. He holds a Bachelor’s degree in Philosophy with a focus on Medical Ethics. Before law school, Topher spent two years in Brazil working with the Ethics Committee at Albert Einstein Hospital, one of the largest hospitals in South America.

His advice for anyone starting a business: “unless you love what you are about to get into, don’t do it.”

Without a personal interest, the long hours and high risk required to start a business are more likely to subjugate the drive to succeed.

After working at an investment bank that focused on the health industry for two years, Topher spent an entire summer researching and learning about the Affordable Care Act.

From his experience studying the ACA, Topher realized that compliance could lead to great uncertainty, especially for small businesses. Larger businesses typically have the resources to pay for compliance experts to advise them, whereas small businesses often have to navigate complicated new requirements themselves. Topher saw the opportunity to help small businesses and the need for simplifying the compliance process. Thus, Topher and his PlanGrade co-founder moved to Utah and began their search for funding. They began attending conferences, networking, giving presentations, and eventually won a small seed investment contest.

broadcast your business plan

While many entrepreneurs tend to try to keep their start-up ideas a secret out of fear, someone may steal their idea, Topher suggests doing the complete opposite.

“Scream your idea from the rooftops. If people can poke holes in your business plan or have a way to do it better, then it is probably not going to survive long past launch anyway.”

By discussing your business plan with other professionals, you receive eye-opening insights and advice. Keeping your business plan a secret until launch is more likely to lead to blind spots and problems you never anticipated. The more people you tell, the merrier!

making big decisions

When Topher and his co-founder began their discussions with ZenPayroll, now Gusto, they thought they were going to be considering an offer to integrate. Instead, ZenPayroll was looking to build its health benefits internally and wanted the founders to bring what they had built with PlanGrade to ZenPayroll and continue building and innovating there. Open minds and open communication between the co-founders were key to the decision to sell. Topher’s next concern was whether they would have the freedom with ZenPayrolll they needed to innovate. Ultimately, Topher was persuaded after a working session with the ZenPayroll team. The team was a great match and was composed of the type of people he would have wanted to hire himself. Moreover, selling his company eliminated risk and the need for more funding.

advice for entrepreneurs looking to make an impact

You don’t need to have the grandest mission to make an impact. For Topher, he loves seeing the direct results of his work on small businesses, especially during such uncertain times.

“You don’t have to take on the biggest problems to actually solve things. If you find something that’s difficult for someone else to navigate, and you reach enough people, you can make a big difference. So don’t be pushed away by the small problems, because if you can simplify a small problem for 50 million people, that also has a meaningful impact on society.”

Follow Topher on:

Lauren Shelby, at the time of this post, is a rising third-year student at Penn State’s Dickinson Law. She is interested in pursuing a career in Business Law.