Houston wealth management adviser weighs in on benefit options as key for small business success

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Small businesses need to factor in employee benefit options from day one — and this Houston expert has some tips. Photo via Getty Images

While Small Business Appreciation month has come to an end, my work in aiding small businesses achieve financial success is continuous.

In 2009, I began my career as a financial adviser recently co-founded Volante Integrated Planning, a Houston-based office of Northwestern Mutual focused on comprehensive financial planning and helping clients achieve financial freedom.

After years of working with business owners, and as a small business owner myself, I have learned the importance of offering benefits that help attract and retain talent, foster improved work habits and provide a foundation for growth. According to the annual SHRM employee benefit survey, health-related benefits and retirement plans were ranked the two most important benefits for employees. Whether you are a new small business owner or an established one, it is important to be aware of the benefit options available to you and the considerations that go into mapping out a benefits strategy.

1. Retirement plan options

The most common retirement plans available to small business owners are 401(k), simplified employee pension (SEP) IRA and savings incentive match plan for employees (SIMPLE) IRA. The SEP IRA and SIMPLE IRA provide employers the ability to save on a pre-tax basis. While there are some required contributions on behalf of any full-time employees, the SEP and SIMPLE IRA’s are often recommended for the self-employed or businesses with part-time or contract employees. The 401(k) also provides employers with a pre-tax savings opportunity and the ability to save on a Roth basis. Because a 401(k) requires additional administration and ongoing requirements, it is often a valuable tool for business owners who have more full-time employees.

2. Health care benefit options

According to the Affordable Care Act, companies with fewer than 50 employees are not required to provide health insurance. However, offering a competitive health insurance benefits package is an increasingly important strategy to help boost both new employee acquisition and retention. Following the global pandemic, health benefits have become increasingly important. According to a study by McKinsey & Company, 51 percent of employers now offer health care benefits to attract new employees with dental, vision, and short-term disability as the most important for job-seekers.

Not only are these benefits of importance to employees, they provide protection for business owners by ensuring good health and protection from illness-related lost productivity. Some health care benefits available to small business owners include health reimbursement accounts, where you make contributions to an account that can be used by employees to pay for individual health insurance policies acquired on their own. Consider hiring a broker, benefits consultant or financial adviser to help compare your options.

3. Life and disability insurance options

As a small business owner, you have a duty to your family, employees and business partners. It is often the unexpected that can derail the success of a business. To that extent, taking the steps to ensure you and your business are protected if you are unable to work is important. Disability insurance is a versatile product that can be used to protect you, as the owner, and your employees against loss of income due to the inability to work. Additionally, disability overhead coverage and disability buy-out insurance can protect the business and any business partners from an owner’s disability, ensuring that the business can still run smoothly. Life insurance is also important, and often required if seeking a business-related loan, to provide income replacement for your family and any business partners in the event of an owner’s death.

4. Get creative with your benefit options

The small business world is ever changing, which is why it is essential — and sometimes difficult — to keep up with benefit options. I encourage small business owners to get creative with their benefit options by exploring a professional employer organization (PEO) and a multiple employer welfare arrangement (MEWA). PEO is designed to help small businesses manage their administrative overhead, benefits and compliance duties. Through MEWA, small businesses are able to collaborate on group insurance benefits for a low cost. Lastly, if your family members contribute to your small business, make sure they are on the payroll and eligible for various benefits. This may allow you to increase the benefits your household takes home.

While creating a small business employee benefits plan can be tedious, it will take your small business to the next level. Consult in a CPA, business attorney, and financial adviser to help navigate what benefits are a good fit for you and your small business.

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Jennifer Steil is principal and wealth management adviser at Volante Integrated Planning, a private client group at Northwestern Mutual.

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This week's roundup of Houston innovators includes Stuart Corr of Pumps & Pipes, Trevor Best of Syzygy, and Jennifer Steil of Northwestern Mutual. Photos courtesy

3 Houston innovators to know this week

who's who

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from clean energy technology to financial planning — recently making headlines in Houston innovation.

Stuart Corr, executive director of Pumps & Pipes

What do Houston's three key industries — aerospace, medicine, and energy — have in common? Pumps and pipes, Stuart Corr explains. Photo via pumpsandpipes.org

Stuart Corr, executive director of Pumps & Pipes, and his team are gearing up for the organization's big annual event — which is returning to its in-person capacity. Though most people would not connect the dots on what all the health care, energy, and aerospace industries have in common, but for Stuart Corr, the connection is clear. It's all a bunch of pumps and pipes.

The Houston organization was founded in 2007 to strengthen the collaboration across Houston's three key industries. The city has NASA down the street, the world's largest medical center, and is regarded as the "energy capital of the world." Through the Pumps & Pipes network, innovators across these entities can share resources and collaborate.

"Pumps & Pipes is all about our network — about innovation on demand. It's the idea that we understand what's in other people's toolkits and innovation and technology portfolios," Corr says on this week's episode of the Houston Innovator Podcast. "Ideally, we want to use these new technologies to solve our own problems."

The event is on December 5 at the Ion. Tickets are on sale now. Read more.Read more.

Trevor Best, co-founder and CEO of Syzygy Plasmonics

Syzygy Plasmonics has raised a series C round of funding. Photo courtesy of Syzygy

Houston-based Syzygy Plasmonics closed a $76 million series C financing round led by New York-based Carbon Direct Capital.

The investment funding raised will help the company to "further development and delivery of all-electric reactor systems that eliminate fossil-based combustion from chemical manufacturing and reduce the carbon intensity of hydrogen, methanol, and fuel," per a news release.

"Closing this fundraising round with such strong support from financial and strategic investors and with commercial agreements in hand is a signal to the market," Syzygy Plasmonics CEO and Co-Founder Trevor Best says in the release. "Forward-thinking companies have moved beyond setting decarbonization goals to executing on them. Syzygy is unique in that we are developing low-cost, low-carbon solutions to offer across multiple industries." Read more.

Jennifer Steil, wealth management adviser for Northwestern Mutual

In observance of Women’s Entrepreneurship Day on November 19, a Houstonian shares her four key considerations for women who want to start their own businesses. Photo courtesy

Saturday was Women’s Entrepreneurship Day, and one Houston-based financial planner shared some tips and considerations for aspiring female founders.

In her guest column for InnovationMap, Jennifer Steil, financial planner for Northwestern Mutual, explained the importance of authenticity and advice on building the right team and support network.

"Being a female business owner has its challenges, but it is also extremely rewarding. If you’re considering starting your own business, it’s important to remember to stay true to yourself and do your due diligence to prepare for whatever unique challenges may be thrown your way," she writes. Read more.

In observance of Women’s Entrepreneurship Day on November 19, here are four key considerations for women who want to start their own businesses. Photo via Getty Images

Houston expert: 4 things female founders should know before starting a business

guest column

Almost four years ago my business partner and I started Volante Integrated Planning, a Houston-based office of Northwestern Mutual focused on comprehensive financial planning. I always aspired to run a business; however, I knew there were many factors to consider before making that leap.

According to the 2022 Northwestern Mutual Great Realization survey, 24 percent of respondents say they want to start a new business in the next two years. While starting your own business sounds appealing, leaving your current job and becoming an entrepreneur can be a difficult transition — and it’s no secret that women have to approach our career paths differently than men.

As I recognize there is no one-size-fits-all approach to starting and managing your own business, I wanted to share a few valuable lessons and key takeaways that I learned from my own experience:

1. Seek advice and counsel

When it comes to starting your own business, it’s important to go through the proper financial and legal steps. In order to do this, there are three people you should consider developing a relationship with. The first is a financial planner who can assist you in growing your business by creating a budget and finding ways to leverage your current assets to set you up for long-term success. The second is a Certified Public Accountant who has experience in your industry to help you navigate the unique intricacies of being a business owner. Lastly, an attorney who can help you draw up the necessary documents and think through what needs to be included to protect you and your family.

2. Build your team

You will always need a support system and business team to lean on no matter how much experience you have in your industry or in running a business. I knew early on that I wanted to partner with someone to make it more fun and add higher value to our clients. Before launching our business partnership, we went through varying business cycles together to ensure we would mesh well, from a value standpoint, both financially and personally. This business “courtship” is critical to ensure you build the kind of trust needed. It is also important to develop the culture and values you want for your business first and choose partners or team members that align with those values.

3. Don’t be afraid to be authentic

People are drawn to authenticity rather than if you try to fit into a box, which is why it’s important to stay true to yourself in all aspects of your business. By being your true, authentic self, you can put a plan in place to start a business that is a reflection of your values and morals. If being a working mom is a part of your identity, don’t be afraid to make that known to the team. There is nothing that says you have to start a business a certain way, so make it yours and own it.

4. Give yourself grace

As women, we have a tendency to want to do it all, but it’s important to give yourself grace and be intentional with how you prioritize your time. There are certain life factors and considerations that ultimately influence how women prepare for their financial futures, especially when it comes to running a business. If starting or managing your business is the priority at the time, it’s OK to let your social life or fitness routine, for example, take the back burner for a period of time.

Being a female business owner has its challenges, but it is also extremely rewarding. If you’re considering starting your own business, it’s important to remember to stay true to yourself and do your due diligence to prepare for whatever unique challenges may be thrown your way.

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Jennifer Steil is a Houston-based Northwestern Mutual wealth management adviser.

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Rice Alliance names Houston healthtech exec as first head of platform

new hire

The Rice Alliance for Technology and Entrepreneurship has named its first head of platform.

Houston entrepreneur Laura Neder stepped into the newly created role last month, according to an email from Rice Alliance. Neder will focus on building and growing Houston’s Venture Advantage Platform.

The emerging platform, which is being promoted by Rice Alliance and the Ion, aims to connect founders with the "people, capital and expertise they need to scale."

"I’ve spent a lot of time thinking about what it takes to make an innovation ecosystem more navigable, more connected, and more useful for founders," Neder said in a LinkedIn post. "I’m grateful for the opportunity to do that work at Rice Alliance, alongside a team with a long history of supporting entrepreneurship and innovation."

"Houston has the talent, institutions, and industry base to create real advantage for founders," she added. "I’m looking forward to listening, learning, and building stronger pathways across the ecosystem."

Neder most recently served as CEO of Houston-based Careset, where she helped bring the Medicare data startup to commercialization. Prior to that, Neder served as COO of Houston-based telemedicine startup 2nd.MD, which was acquired for $460 million by Accolade in 2021.

"Laura brings a rare combination of founder empathy, operational experience and ecosystem leadership," Rice Alliance shared.

Neder and Rice Alliance also shared that the organization is hiring developers to design the new Venture Advantage Platform. Learn more here.

Elon Musk's SpaceX files initial paperwork to sell shares to the public

Incoming IPO

Elon Musk's space exploration company has filed preliminary paperwork to sell shares to the public, according to two sources familiar with the filing, a blockbuster offering that would likely rank as the biggest ever and could make its founder the world's first trillionaire.

A SpaceX IPO promises to be one of the biggest Wall Street events of the year, with several investment banks lining up to help raise tens of billions to fund Musk's ambitions to set up a base on the moon, put datacenters the size of several football fields in orbit and possibly one day send a man to Mars.

The sources spoke on condition of anonymity because they were not authorized to talk publicly about the confidential registration with the Securities and Exchange Commission.

SpaceX did not respond immediately to a request for comment.

Exactly how much SpaceX plans to raise has not been disclosed but the figure is reportedly as much as $75 billion. At that level, the offering would easily eclipse the $29 billion that Saudi Aramco raised in its IPO in 2019.

The offering, coming possibly in June, could value all the shares of SpaceX at $1.5 trillion, nearly double what the company was valued in December when some minority owners sold their stakes, according to research firm Pitchbook, before an acquisition that increased its size.

Musk owns 42% of the SpaceX now, according to Pitchbook, though that figure will change with the IPO when new owners are issued shares. In any case, he is likely to pierce the trillion dollar mark because he is already close. Forbes magazine estimates Musk's net worth at roughly $823 billion.

In addition to making reusable rockets to hurl astronauts and hardware into orbit, SpaceX owns Starlink, the world’s largest satellite communications company. The company also recently brought under its roof two other Musk businesses, social media platform X, formerly Twitter, and artificial intelligence business, xAI, in a controversial transaction because both the seller and the buyer were controlled by him.

SpaceX has become the biggest commercial launch company in its industry, responsible for sending payloads into orbit for customers across the globe, but has also benefited from big taxpayer spending. That has raised conflicts of interest issues given that Musk was the biggest donor to President Donald Trump's campaign and is still a big backer.

In the past five years, SpaceX won $6 billion in contracts from NASA, the Defense Department and other U.S. government agencies, according to USAspending.gov.

Among current SpaceX owners is Donald Trump Jr, the president's oldest son. He owns a shares through 1789 Capital. That venture capital firm made him a partner shortly after his father won the presidency for a second time and has been buying up federal contractors seeking to win taxpayer money ever since.

The White House and Trump himself have repeatedly denied there are any conflicts of interest between his role as president and his family's businesses.

8+ can't-miss Houston business and innovation events in April

where to be

Editor’s note: Houston's weeklong innovation festival kicks off April, followed by Rice University's globally recognized pitch competition returning for its 26th year. Plus, find coworking pop-ups, industry meetups, pitch battles and even a crawfish boil on the calendar. Here’s what not to miss and how to register. Please note: this article might be updated to add more events.

March 30-April 4 — H-Town Roundup

Celebrate innovation, entrepreneurship and collaboration at Houston Exponential's sixth-annual H-Town Roundup. During the free event series, previously known as Houston Tech Rodeo, attendees can expect insightful talks, workshops and networking events at venues across the city.

This event began March 30. Register here.

April 2 — Industrious Coworking Day

Enjoy a complimentary day of cowering at Industrious and network with professionals at the Ion. Breakfast, snacks, wifi and workspace tours are included. Following the cowering day, Industrious will host happy hour at Second Draught from 4-6 p.m.

This event is Thursday, April 2, from 8:30 a.m.-5 p.m. at the Ion. Register here.

April 2 — Technology Summit for Women

The fourth annual Women in Tech Cummil will feature speakers across three core tracks: Transformation + Digital strategy, Cyber + Risk + Resilience, and AI in Practice. Pearl Chu, director of technical domains and university relations at SLB, will give the opening remarks. Other panelists come from CenterPoint Energy, BP, Technip Energies and other leading companies.

This event is Thursday, April 2, from 2-5 p.m. at the Ion. Register here.

April 8 — Veterans Business Battle

Hear pitches from veterans and entrepreneurs as they compete for more than $10 million in investments at Rice Businesses' 12th annual Veterans Business Battle. This year, the two-day event will also feature a Small Business Expo, which invites Houston-based, veteran-owned businesses to participate in education, networking and the opportunity to showcase their business. Moonshots Capital and Mercury Fund will also host a fireside chat.

This event begins Wednesday, April 8, at 11 a.m. at the Ion. Click here to register.

April 9-11 — Rice Business Plan Competition

The Rice Alliance for Technology and Entrepreneurship will host the 26th annual Rice Business Plan Competition this month. Forty-two student-led teams from around the world, including one team from Rice, will present their plans before more than 300 angel, venture capital, and corporate investors to compete for more than $1 million in prizes.

This event begins Thursday, April 9. Find more information here.

April 10 — BioHouston Chili Cookoff

Connect with Houston's life sciences community at BioHouston's 21st annual chili cookout. This event is geared toward startup founders, researchers and industry veterans alike.

This event is Friday, April 10, from noon-4 p.m. at Bayou City Event Center. Register here.

April 14 — Mercury Fund Day at the Ion: Agentic Commerce

Don’t miss the latest installment of Mercury Fund Day at the Ion, previously known as Software Day. The recurring monthly event features office hours (by application), a keynote and networking opportunities. This month's topic focuses on agentic commerce.

This event is Tuesday, April 14, from 3:30-7 p.m. at the Ion. Register here.

April 19 – UH Energy Industry Crawfish Boil

Head to the UH Cullen College of Engineering Green Space for the 35th annual UH Energy Industry Crawfish Boil. The event will include a student showcase, STEM activities, a kids zone, live music, networking and, of course, crawfish. Proceeds from the event will support the multidisciplinary capstone fund that aims to increase professional readiness for Cullen College engineering and technology students.

This event is Sunday, April 19, from 1-5 p.m. at the Cullen College of Engineering Green Space. Find more information here.

April 24 — Rice Business Healthcare Conference

Leading experts, innovators and the next generation of healthcare leaders will converge at the Rice Business Healthcare Conference. Hosted by the Rice Business Healthcare Association, the conference will explore AI's potential impact on the sector.

This event is Friday, April 24, from 8 a.m.-2 p.m. at McNair Hall on Rice University's campus. Find more information here.

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