Month: October 2012

Categories
Finance & Capital

Tips on Making the Tax Man Happy

Entrepreneurs and small business owners are forever trying to keep up with the unending alterations to tax requirements and paperwork.  Believe it or not, the IRS is feeling the strain as well.  Between 2001 and 2010, there were a total of 4,430 revisions to the U.S. tax code — that’s more than one change a day.  And everyone is struggling to keep up with the constant revision to the revenue rulebook.  These days, in an expensive effort to stay out of trouble, almost 90% of small business owners hire professionals to take care of their tax returns.

If you are unable to afford to hire a professional at this time, get ready to get up to your elbows in tax code.  Filing your own taxes is becoming akin to a full time job for entrepreneurs.  And the IRS is cracking down on small business owners, again.  In 2006, they audited almost 18,000 small business (those making less than $10 million).  Now, they are especially on the lookout for high dividend payments to owners and low salaries.  If at all possible, bring someone in to take the stress off your shoulders, and to help you pay the correct amount to the IRS.

Here are a few basics that every small business owner should adhere to: 

1. Hire a professional to do your taxes, or at least have someone look them over.

2. File tax returns on time, within twelve months on the end of your accounting period.

3. Explain and break down big numbers so no questions need to be asked.

4. Account for loan account transactions.

5. Distinguish correctly between personal and company spending.

6. Only take deductions that apply to you, best not to get too creative.

7. Keep receipts for all company purchases and write offs.

8. Claim tax credits wisely and sparingly.

9. Be organized before tax season — have everything ready in advance.

10. Disclose absolutely everything.

The best thing you can do to ensure an accurate tax return is to keep accurate records.  Organization is key.  Receipts need to be filed accordingly, not just kept in a huge manila envelope.  There is a device called Neat Receipts that allows you to scan receipts directly into a computer.  Then you can put them into separate folders, like travel or office supplies, to make life a bit easier if you ever do get audited.  And realize that often with entertainment receipts, the IRS wants to know who was present and what business was discussed.  They take special scrutiny with anything that could be deemed as fun.

The IRS will often contact business owners by mail before they do a full blown field audit.  Consider this a chance to prove yourself an organized and worthy business owner, and provide them with proof of anything they are curious about.  Oftentimes, if they receive sufficient documentation, an audit will never take place.  And if you have only recently started taking proper care of your business’s finances, consider this a way to keep the IRS from looking into past, and possibly less organized and meticulous, years taxes.

About the Author 

Samuel Guinen is a small business owner who likes blogging about, but not paying, taxes. He is a frequent contributor for the EllsworthLawGroup.

Categories
Starting Up

Lead the Pack: What Dogs Can Teach Us About Running a Business

Article Contributed by Stephen Farnham

It’s not just by chance that dogs have earned the nickname “Man’s Best Friend”.  We have bred them to be our companions, helpers, and servants for millennia.  If you are lucky enough to own one, at times you probably wish that many of the traits we see in them were more prevalent in the people that we interact with.  Instead of just watching dogs and marveling at what well adapted creatures they are, let us take some of what makes them so special and apply it to running a successful business.  There are five traits that dogs exhibit that would also make us all more successful entrepreneurs.

Have a short memory

If you own a dog, there is no doubt that on at least one occasion you’ve returned home to find a horrible mess, something chewed to bits, and a dog with a very guilty look on its face.  The dog will often hang its head, drop its tail between its legs, and cower away from you as you tell it what a naughty dog it’s been.  Then by the time you take your shoes and jacket off, their tail is wagging and they are giving you that “Is it time to play now?” look.  This trait of having a short memory where a negative act is concerned allows the dog to move on quickly to whatever comes next without letting it affect their drive or determination.   You can use this same mindset when dealing with rejection or failure.  Say for instance that there is a coworker you need to collaborate with on a project, and they somehow have failed or not held up their end.  The next time the two of you need to work together, do not presume the same results, but rather approach them with a fresh, positive attitude, implying that you are confident things will go better the second time.  Do not let past failures get in the way of future success.

Be eager to meet strangers

More often than not, when someone is walking towards you with a dog, the dog is eager to say hello, to get that pat on the head or just hear a kind word.  Too often in the hustle and bustle of the world we live in, we feel we don’t have the time for a stranger who might want a word with us.  Put those feelings aside for a second and remind yourself that everyone in our lives was a stranger when we first met them.  Maybe they have interesting ideas about your work, or know some people who would be a great asset to your network.  Greet strangers with enthusiasm and great things are possible!

Address every threat

A relaxing evening at my house is often interrupted by the baying of my coonhound named Jack.  He’s a laid back fellow who is pretty happy snoozing on the floor or his bed while I’m doing just about anything.  Sometimes though he’ll hear or smell something outside, and when he does he lets everyone know it.  He darts from window to window, baying and growling, looking for the potential intruder and making sure they move quietly on their way.  I’m quite convinced that most of the time he’s making much ado about nothing, but Jack is diligent and defensive.  In our professional lives we are presented with threats probably every day.   Some of them likely go unaddressed or even undetected, but maybe we should be more like Jack.  When a threat arises, ask yourself “What’s the worst-case-scenario for this situation?”  With every threat we are presented with, the worst-case-scenario is that something terrible will happen and we did nothing about it.  If we assess and attack every business threat that comes our way, success is inevitable!

Be a calm, assertive pack leader

You have probably worked with or for someone who might be referred to as a “hot head”.  They are the ones who might bury their face in their hands or bang their fists on their desk when given some bad news.  If a subordinate does something wrong, they are the one who screams and yells.  Nobody wants to work with that person, much less for them.  There is no emotion in a dog’s world.  Dogs are social animals who work in packs.  The pack leader leads with a calm and assertive energy.  Dog expert Cesar Milan (aka “The Dog Whisperer”) maintains that dogs look for that same sort of leadership from us.  When it comes to leading a dog, an emotional reaction from us is seen by them as a sign of weakness.  Apply this same principal to the workplace.  Set emotions aside and show your team that you are a calm and assertive leader.  This will give them confidence that you are a competent leader, and will help you in earning their respect.

When the pack wins, you win

Dogs are social carnivores.  This means they are meat-eaters who hunt in packs.  On their own, a dog will have a tough time surviving.  They need each other in order to survive, and your business success is no different.  We all know that anyone who is successful has a team behind them.  Yes, we are all the holders of our own destiny, but behind each of us there is a team, a network, and a support system.  It is important to nurture all of these relationships.  Surround yourself with successful people.  Do everything you can to be one of the stars in their network too!  Successful people feed off each other.  Each positive interaction brings exceptional results down the road.  Feed the pack and watch everyone thrive!

About the Author

Stephen Farnham MBA, is President of Choice One Consulting, a firm providing bookkeeping, consulting, financial analysis, and social media marketing to small businesses.  Choice One Consulting can be found on their website, Facebook, and LinkedIn.

Categories
Operations

3 Fulfillment Tips for First-Time Online Business Owners

Article Contributed by Michael Koploy

According to Forrester Research Analyst Sucharita Mulpuru, online shoppers are expected to spend $327 billion by 2016–a 45 percent increase from this year. Obviously, now (more than ever) is a great time to get into the e-commerce game.

But it’s also a crowded sphere where many of the big-time players (think Amazon.com, Walmart.com and Macys.com) have the upperhand. It will be important for you not only to build an excellent website that converts traffic and bring visitors to your site through effective online marketing campaigns, but you have to also provide excellent customer service when it comes to fulfilling orders correctly, on-time and safely to customers.

The ability to provide good service often comes down to the efficiency of your fulfillment operation. Michael Koploy, Analyst at the SoftwareAdvice.com company, recently put together a starter’s guide for first-time ecommerce business owners looking to improve their fulfillment capabilities. You can check out the guide here: The Starter’s Guide to Effective eCommerce Fulfillment.

In his starter’s guide, Koploy pinpoints where new business owners should focus on the following to improve fulfillment:

1. Benchmark fulfillment metrics

Focus on the metrics that are closely aligned with the aspects of customer service that matter most to your business. For example, if speed of delivery is one of the more important aspects to your offering, focus on metrics such as order turnaround time to ensure orders that come in are quickly picked, packed and shipped.

2. Hire employees to specialize in fulfillment

As more and more orders come in, you’re going to need help meeting demand in a timely manner. As you employ others to assist with preparing orders, have them specialize in one specific aspect of fulfillment. For example, have one employee specialize in the organizing inventory and packing orders for eventual shipment. This way, these employees will become excellent at the one aspect of their job, and will eventually be able to pinpoints areas of improvement that a “jack-of-all-trades” may have not been able to realize.

3. Know when to ask for help for certain aspects of fulfilment.

Finally, it’s important to realize that stocking inventory and fulfilling orders for all of your merchandise may in fact be stifling your growth. If time, effort and resources are better spent on other aspects of your business, then it’s time to outsource. Fulfillment by Amazon, for example, allows merchants to either (a) place their merchandise directly on Amazon’s webstore, or (b) sell through an existing online storefront and just have Amazon fulfillment centers ensure orders get to the customer.

Alternatively, you can look into dropshipping certain aspects of your inventory. A dropshipper will own the inventory and fulfill orders as they are placed–for a premium price. For this reason, it’s important to consider which items in your inventory to dropship. It’s common to utilize a dropshipper for high-margin items that can afford a hit to profits or to high-volume items that you know will always be in high demand.

About the Author
If you would like more tips on fulfillment, reach out to Koploy on Google+.

Categories
Customer Service

Under Promise and Over Deliver: The Key to Quality Customer Service

Article Contributed by Mikkie Mills

We’ve all heard the motto, “the customer is always right,” because in our consumer-based economy it has nearly become an immutable law for any business owner or manager. The commitment to customer service has almost become a given in our society, so much so that customers now seem to expect nothing short of royal treatment. That poses some interesting challenges from the business end because there will inevitably be situations in which businesses must draw a line with customers. One of the biggest difficulties facing modern businesses is knowing where to draw that line while also doing everything that can be done to help customers feel like their business is appreciated, their loyalty is deserved and their (reasonable) expectations are met.

Perhaps the most important advice that can be given to businesses in their effort to allow the customer “to always be right” is best
explained with another short maxim: “under promise and over deliver.” While that may initially sound contradictory in a world full of
advertising that makes gigantic claims, it has simple and effective practical application in a few of the most basic elements of customer
experience.

Quality

Quality Ice Cream Mural

One of the most common complaints from customers is the underperformance of a product or service. In some cases the customer probably expected too much. In many cases, however, their expectations were derived from marketing that promised more than could be delivered. Of course, when it comes to advertising you need to portray your product/service as positively as possible but you will find that your business will win more customers and greater loyalty if the product or service exceeds expectations. And research confirms that word of mouth recommendations are still the best way to win new customers or clients. If you want your customers to do the advertising for you, then allow them to be pleasantly surprised by what you have to offer.

Shopping Experience

Whether you conduct most of your business online or from a physical location does not really matter. The experience your customers have while in your store or on your site will provide a lasting impression that will be hard to reverse. If you are operating a physical location make sure that the entire property is clean and well maintained. Even the condition of the parking lot can have an impact on your customers’ opinion of your business. The same goes for websites—make sure that your site is easy to navigate, has a professional look and is free from excessive ads or any sort of content that could be viewed as disagreeable to customers.

Louis Vuitton Luxury shopping in Bangkok - July 2009 - at the Gaysorn Shopping Mall - One of the best shopping experiences in the thai capital city! Fashion and luxe pure!

Promotions, Discounts, Giveaways

Discounts, special deals and complimentary gifts are a great way to help customers feel valued. Distributing coupons can be a great way to advertise your products or services and has proven to be an effective way to drive traffic to your business. If you don’t have the funding for a widespread marketing campaign that includes coupons, discounts or special offers there are still ways to utilize these features. An announcement on a webpage or a simple word of mouth pitch from an in-store employee is a great way to pleasantly surprise customers and help them feel that your business always seems to offer even more than expected. Also consider including  small complimentary products for customers that have purchased a certain amount or have returned after an initial purchase and you’ll likely find that those customers become loyal to your business and will eventually be the source of many new customers in the future.

About the Author:

Mikkie Mills is a Chicago native.  She is involved in business and fashion and a mix between the two.  She often freelance writes
for Vista Print, through which you can treat your customers to their very own personalized mugs.  Connect with her on Google
+ or on Twitter (@DollarHacks).

Categories
Work Life

What’s Your Productivity Trigger?

My Grandfather told me stories of getting up at 4:30 a.m. to bring in the wood, put it in the cook stove, and light the fire so his mother could prepare breakfast. A sister gathered in the dark eggs laid by the hens. A brother prepared the pig months earlier. The flour ground from their corn was in a sack to make the biscuits with fresh milk from their cows. Sure they had a lot to do every morning, but if they wanted to eat, this is what they did.

Your biggest morning task is to decide whether to stop by Starbucks or McDonald’s for breakfast. That leaves you an abundance of time to do other things on your to-do list that are important, right?

Struggling with your to-do list?

How do you focus on what’s most important as you Work Positive?

First, find your productivity trigger.

I found mine as I stood at a family member’s open grave. He was young and his death unexpected. As I stood there, my mind flooded with all the times I wished I had called him just to say “Hi!,” the birthday cards I didn’t send and “just because” notes left unwritten. I cried.

I decided that I wasn’t crying for him, but for me. For the lost opportunities—words left unsaid; deeds left undone.

Then a beautiful dragonfly flew over the grave, his iridescent wings glittering in the summer sun. More joined him and I remembered that most dragonflies live only about a month.

As I stood there at that open grave, staring at dragonflies, I asked myself, “If I only had a month to live, what would I do?”

Watching the sandy soil cover his casket, dragonflies flitting about, I decided to do better. I now say all the words, some to people I haven’t spoken with in 30 years. I now do for others rather than wait until later. I define success by my clients’ metrics.

I pay attention to what is important. I focus on and filter for positive thoughts. I cooperate and complement with other positive people, with no Eeyore Vampires on Team Joey. I trust my birthright to believe and imagine the best in opportunities, while my accountability partners sniff out the trail of my ego and redirect me as necessary. I pay attention to what is important, which leads me to achieve a Work Positive lifestyle. I share my discoveries with you.

What’s your productivity trigger?

Who do you work for? More than your employer?

Why do you work? Pay bills or achieve financial independence?

How do you work? Job or career?

Where does your motivation arise from? Mine certainly changed…

Answer these questions and find your one trigger to be more productive this week as you Work Positive.

About the Author:

Dr. Joey Faucette is the #1 Amazon best-selling author of Work Positive in a Negative World (Entrepreneur Press), coach, and speaker who help professionals discover success in the silver lining of their business and achieve their dreams. Discover more at www.ListentoLife.org/speaking.