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Choosing the wrong NAICS code can cost you millions!! - Eric Coffie - YouTube
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hello everyone and in today's video
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we're discussing next Oh what is the
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next though why do you need it and how
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to choose the right Mexico for your
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business what is the next code a next
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code is a six digit code used by federal
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agencies to determine the products and
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services that they want to buy and then
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it's also used by small businesses to
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identify products and services that you
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want to sell to the government
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now where's it's coming to place when
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you get ready to register the Sam site
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and then apply for some of these small
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business programs you're gonna have to
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identify what is your primary next
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though and what're your secondary tax
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code in the video that's coming ahead
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we're going to show you how to register
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and how to identify your next bills and
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how to determine which next code you
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should be your priority and then which
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Mexico should be your secondary I can't
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stay - and pay attention because this is
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a good stuff all right so what is the
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next code a next goes a six digit code
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used by the federal government to
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describe parks and services that they
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want to buy or purchase for your
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particular company you're gonna have an
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X code and let me I'm in construction so
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I'm gonna just type in construction if
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you look at a construction you'll see
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the titles the different codes and some
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common keywords used to describe those
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titles I'm not I don't do sand and
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gravel mine so I'll skip that I'm gonna
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scroll down new single-family housing
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construction I do do that and then from
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here you'll see where it says primarily
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engage and they'll give you a list of
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items related to this particular code
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because it's so specific most businesses
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are going to have multiple codes I'm
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gonna go ahead and save that twenty
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three six one five code put it on my
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cheat sheet over here and then we're
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going to discuss it a little bit later
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on what does that mean how does that
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affect your business one of the code
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they were gonna add is painting my
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friends a paint contractor so we're
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gonna go ahead and search for his code
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two three eight three two oh and again
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I've already got that here on my cheat
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sheet two three eight three two oh now
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why's next goes important how to choose
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the right next book for your business
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let me take you over to the SBA's what
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that's called size standards
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this size standards table determined
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your eligibility to be a small business
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they correspond to your next codes that
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you use what's called primary and
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secondary next codes
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let me explain size standards are based
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on two categories manufacturing which is
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determined by the number of employees
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you have and contract work which is
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determined by millions of dollars so
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again you are an eligible smallest
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business under manufacturer based on the
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maximum employee threshold number and in
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contract under the dollar amount so as
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you can see that dollars range from 0.75
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million up to thirty eight point five
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million which is oil and gas operations
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how does that break down this is your
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annual year closed receipts over a three
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year span
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same thing with employees you can't your
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employee count cannot exceed five
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hundred employee average over through
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your span let's go ahead and translate
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that into business registration so a
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king let me to the example we talked
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about 2383 - oh that's the paint code my
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friend and two three six one five is the
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new single-family housing construction
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code so let's go in and let's see my
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friends registering to visit the
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government he registers his business XYZ
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he puts its primary tax cut his pay then
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his secondary code a single
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single-family house construction what
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does that mean that means that his cap
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to be eligible as a small business is 15
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million a year over three years for a
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total of forty five million dollars a
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year in any three year span once he
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exceeds that number he's no longer
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eligible to be a small business if he
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were to reach out to me and ask me Eric
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what should I do
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how should i structure my federal
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registration I would advise him to make
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the single-family construction
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his primary code and then the painting
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his secondary code that way his cap
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would be thirty six point five million
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per year averaged over three years for
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twelve one hundred and ten million
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dollars that's a difference of sixty
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million dollars and that's why choosing
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the right code primary nag school tree
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business is so
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and understanding prior to your
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registration I hope that you all learned
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a tremendous amount about choosing the
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right max code for your business I mean
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the difference is literally potentially
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lost revenue and the millions of dollars
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again as always reached out to me any
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comments and questions I'm on all the
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social media platforms and you can send
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me an email
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escort contracts calm thank you
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