Tag Archives: entrepreneur

Keeping Business Momentum Moving During the First Quarter and Beyond

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Business profitability moves in a cyclical pattern. Typically, the first quarter of the New Year is the slowest, and is often the most difficult to survive, particularly for small businesses. It’s natural that sales taper off during this time of year – customers are recovering from their holiday spending, they’re preparing to pay Uncle Sam what they owe and the winter doldrums have set in as well. However, there are a few things that you can do to help ensure that you keep your business moving forward.

Set Goals

Goal setting is an important consideration for any business in any industry. However, it’s important that you go about setting your goals in the right way. Use the SMART method, and you’ll have a significant advantage over the competition.

SMART is an acronym for Specific, Measurable, Attainable, Relevant and Timely. Each goal you set should follow these criteria. Moreover, you should set your goals as early as feasible, so you can have a plan in place to work toward during the slow months. Often, action translates to momentum, though you’ll need to be prepared for a different sort of momentum than what you experience during busy sales periods.

Goals keep your company moving forward, even if you’re not experiencing a high level of foot traffic or your website sales have slumped. However, your goals during this time of year should differ from those you set during busier months. Focus on business improvement, refinement, new project planning and the like instead.

Determine Needed Improvements

Often, keeping a business moving isn’t all about actual selling. Sometimes, it’s about finding things within your business to improve. The slower months of the year are the ideal time to dig deep and identify what you can do better and how you can change it. This can apply to any area of your business, from shipping and receiving to marketing and promotion – you might find new software that streamlines your receiving process, or perhaps you’ll work on creating a marketing campaign directed at current customers from your existing database rather than focusing on bringing in new ones. Now is the time to take stock of your business, identify areas where change is needed and then make those changes.

Advertising Still Matters

Just because you’re stuck in the doldrums of the dreaded first quarter, it doesn’t mean that you should stop your advertising. However, it’s the perfect time to investigate new marketing methods that you might have wanted to check out but lacked the time, earlier in the year. For instance, if you’ve been considering social media marketing but lacked the time, get started. Maybe you’ve have considered starting a newsletter to keep your customers informed, or you want to conduct surveys to gather vital data. Now is the time. You’ll also find that because the season is slower for pretty much all businesses, your own marketing messages will get more traction.

Plan New Projects

Because these months are slow, you’ll have time on your hands that can be put to good use in the area of project or product planning. If you’ve been thinking about starting a new project, offering a new service or releasing a new product, this is the perfect time of year to get started with the process. You’ll find that the productivity and energy your new planning generates spills over to other aspects of your business as well.

Keeping a business moving forward during slow periods is a challenge for every business owner and CEO. Have patience, set goals, improve your company, try new things and that momentum will continue.

Don Elfrink is the owner and operator of AutoMatStore.com, a company selling auto mats throughout the nation. Before AutoMatStore, Elfrink was the operator of an automotive production site. AutoMatStore focuses on logo, carpeted, molded and all weather floor mats.

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How Rubber Stamps Can Help Your Business Stand Out

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When your business begins to grow, it is important that you, as the leader, begin thinking about the importance of your company’s appearance. There are a lot of areas that can be covered on a large scale, from moving to a more prominent office location to creating a new, more user friendly website. Often, many businesses pay more attention to big changes and skip out on smaller ones that can make your office look and feel more professional, without draining your company’s coffers.

One of the simplest, most cost effective things that your business can invest in is rubber stamps. These basic office supplies can go a long way in making your business appear larger and more professional, not only to employees, but to customers and suppliers as well. Here are a few ways how basic and customized rubber stamps can help your business stand out from your competition.

Basic Stamps

Rubber stamps come in nearly every shape, size and design that you can imagine. Many common phrases and job titles that are often used in the business world such as “Paid” or “Accounts Receivable” can be found pre-printed on commercial stamps. For just a few dollars, these stamps will not only make the job of your accounting department easier, but also put a more professional appearance on invoices and receipts. With simple stamps, invoices can be marked off much more quickly and without the mess of writing all over each one.

Custom Made Stamps

In addition to the basic design of pre-printed rubber stamps, most office supply companies can also create custom stamps to fit a wide variety of your needs. Whether it is a customized picture or any phrase that your business uses on a regular basis, office supply companies can provide you with rubber stamps that meet your exact specifications.

The most common use for custom made rubber stamps are as signature stamps. By providing the stamp maker with a copy of your signature, they can create a replica onto the face of the stamp. This is ideal for business owners and professionals who are constantly signing off on documents and paperwork. By using a stamp, you can easily save valuable time each day. Stamps like these should be well-controlled. Only authorize one be made, and be careful of who has it – it in the wrong hands a signature stamp could be used on countless documents.

Avoiding Confusion

Another benefit of using rubber stamps in the office is that it helps avoid confusion on documents between employees. Skip troubles with handwriting and unclear instructions. By using stamps to communicate on documents, co-workers and employees are able to clearly understand what is expected out of them in regards to your instructions.

By making small changes around your business, you can easily alter the perception of your company by your employees, business associates and consumers. By using rubber stamps for your office’s communications you can increase the professionalism both between employees and to the public. Not only do these stamps make your business look more sophisticated, but they also reduce the amount of mistakes make because of misunderstandings over instructions. For companies who need to process large amounts of documents, using rubber stamps can save significant amounts of time for those needing to authorize the paperwork. Look at your office’s procedures for documents today, and imagine how rubber stamps could increase productivity in the workplace.

Mike Gardener is a founding partner of TheOfficeProviders.com. Mike is a passionate real estate investor who loves helping other investors and businesses by providing any kind of office space. You can see his site for more details. His areas of expertise include real estate investment, office space rental, and economic and business issues. 

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Do Your Taxes Have Bad Breath?

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Today, our guest poster Justin Krane offers up a step by step plan on how to stay on top of your taxes and how to avoid putting them off till the last minute. Additionally, you can join Justin and our CEO Deborah for an amazing financial webinar on May 29th at 1PM PST/4PM EST. In this webinar, Justin will teach you how to create high quality goals and the financial strategies to put in place to work towards achieving them. You in? We are! Register by clicking here.

You are trying to back away from them but their stank is just ridic? They have no idea how bad their breath is! Especially when they eat the onion bagel with lox cream cheese! You’ll do anything to avoid their halitosis.

Got me thinking. Do your taxes have bad breath? Your taxes only end up stinking if you put them off till the last minute. It stinks to have no idea how much money you owe the IRS. Give your taxes a breath mint! No more scrambling the last few days before taxes are due. No more tax surprises. No more bad breath.

How you plan your taxes is most likely how you plan your financial life. It’s time to be proactive, not reactive! I want your financial life to be easier for you.

Here’s my step by step plan on how to stay on top of your taxes.

1. Keep your books/financial records current. Hire a bookkeeper. You didn’t get into business to enter all of your receipts/bills into Quickbooks by yourself. This should not be your day job. No more 10pm data entry after your kids go to bed. Why not watch Homeland instead?

2. You need to speak with your accountant every quarter (better than getting a root canal, right?). Give them your quarterly profit/loss statement. Review it with them. Ask your CPA to tell you what you owe in taxes for that quarter. Then when you get the amount owed, pay the taxes then. Don’t wait till the end of the year. You will forget. You might spend your tax money somewhere else and then it’s game over. If you do this every quarter, you will most likely have paid in enough in taxes and you wont get hit with a huge bill.

3. Ask your CPA how you are going to pay your taxes. Will it be through withholding from a salary, or just based on paying estimated taxes?

4. Make sure you have the correct entity for your business. Should you be a sole proprietor, LLC, or an S Corp? Ask your CPA if you need to take a salary to pay your taxes. Most of the time, S Corps and C Corps have to pay salaries to you.

5. If you have sizeable realized gains in your investment portfolio, tell your CPA. A realized gain is when you buy something (stocks/mutual funds, etc) and sell it for a profit, in a taxable account.

Why do all of this tax planning stuff? Because now we can have a clearer idea how much money we have left. Our money is dying to talk with us! It’s so much easier to have a conversation with it when we know what we have – once we pay taxes. It’s time for us to get peace of mind, happiness, and more financial control. We just have to make the decision that doing tax planning isn’t that bad after all.

Justin Krane, is a Certified Financial PlannerTM professional and the President of Krane Financial Solutions.  His savvy, holistic approach to financial planning allows clients to unite their money with their lives and businesses with sound financial decisions. Using a unique system developed from his studies of financial psychology, Justin partners with entrepreneurs to create a bigger vision for their business with education and financial modeling. Follow Justin on Twitter @justinkrane.

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It’s Not About “Surviving” As a Working Woman But Keeping a Great Attitude

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My mom and me!

One of my earliest and strongest memories from when I was a little girl was watching and getting ready for the day every morning with my mom. Mom got ready for her work day while simultaneously making breakfast and helping me get ready for school. My mother ran the Anesthesia Laboratory at UCLA and it was a job that took up a lot of her time. Despite the constant hubbub at the hospital she dealt with, I also have vivid memories of her still attending each one of my cheerleading games and of her picking me up after school every day, without fail. Even later in life, when I had my own kids, she graciously watched them one day a week for me up until she retired – and now she’s at least two days per week!

All throughout my childhood and young adult life, there was no other option in my mind to be when I grew up than a hard-working career woman. My mom taught me from a very young age how to be strong in the workplace as well as in every other facet of my life.

That’s where my success all started: with my mom.

At some point along the way of growing up, I became acquainted with the company I would later own, MyCorporation. I joined in 2004 as VP of legal and business affairs, leaving behind a law firm partnership in Los Angeles. I thought the switch would allow for greater flexibility in my work life, plus I was excited to be a part of an entrepreneurial venture. A few years later, MyCorp was acquired by Intuit and I was appointed to run the company under them. In 2009, I purchased the division and began running the company myself, as a business owner.

Now I’m the mom with my two sons!

Since then I have been riding that entrepreneurial wave, and learning new lessons every day. Being an entrepreneur comes with its own sets of highs and lows. On the plus side, I have complete flexibility; if I need to pick my boys up from school I can do so on my own time so long as I accomplish everything I need to do for the day. I get to grow as a business woman and learn from every business venture in which I partake. And, of course, you learn to take the bad with the good. The pressure of having an entire business as your responsibility can be overwhelming at times – dealing with payroll and the daily employee matters aren’t exactly a walk in the park! But the freedom and flexibility it gives me are all part of being an entrepreneur and I wouldn’t trade any of it in for the world.

The biggest entrepreneurial lesson I have learned thus far is how to deal with those above mentioned employee matters. I am an attorney by trade, an individual contributor, so initially I was not used to addressing so many employee issues on such a regular basis (hiring, firing, employee reviews, conflicts, and so forth) but what I have learned to do is to try and stay ahead of the curve. I strive for constant communication, to be fair and not get too involved. This has enabled me to focus on the mission and goals of the business.

Coming into this business, new female entrepreneurs will hear time and time again of the stigmas women face in being entrepreneurs. Now having done it for years, I think being a female entrepreneur is actually an advantage. I’m a friend, wife, mother, and room mom; of course I can handle being an entrepreneur as well! Gender aside, keeping a great attitude and always seeing the best side of every situation are great business traits to have whether you’re a man or a woman. As my mom taught me from the get-go, it’s not about ‘surviving’ as a woman in the workforce, it’s about keeping great focus, treating others well, and, at the end of the day, getting done what needs to get done all with a smile on your face.

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S is for S-Corporation

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For this week’s post we will get to know one the incorporation options a bit better and learn what it has to offer a new entrepreneur: the S-Corporation!

First off, what is an S-Corporation?

Well, an S-Corporation (also known as the S-Corp) is a special type of corporation that draws its designation from subsection S of the tax code. To start an S-Corp, a small business owner starts a C-Corporation in the state where it is headquartered, then files for S-corporation status with the IRS. While an-S Corporation is similar to a C-Corporation, it has different income and self-employment tax regulations. 

One of the biggest and best differences between an S-Corporation and a C-Corporation is the pass through taxation. Like an LLC, an S-Corporation does not pay taxes at the corporate level. Any income or losses are reported only on the personal income taxes of the business owner’s. As a result, this avoids the issue of double taxation that affects C-Corporations. Since net losses are also passed through, the individual shareholder may be able to reduce his or her tax liability by offsetting other income with any S-Corporation losses.

Though, there is an important caveat to keep in mind: any shareholder who works for the company must pay him or herself reasonable compensation. Basically, the shareholder must be paid fair market value, or the IRS might reclassify any additional corporate earnings as “wages.”

If pass through taxation sounds good to you, consider the S-Corporation for your new business. And no pressure, if you end up deciding you’d like to stick with a regular C-Corporation after declaring your business as an S-Corporation, you can easily drop the S-Corporation status with the IRS.

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Business Basics: Professional Corporations

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Welcome to our weekly business basics post! This week we decided to explore a specialized legal entity called a professional corporation (PC). Now most of those who know a little bit about corporate law probably know that there are two, main types of corporations – S-Corps, and C-Corps. But in addition to these, there are a few other specialized structures that are important to keep under the belt of a small business, like the professional corporation.

So what is a professional corporation?

Like with a regular corporation, converting a sole proprietorship or a partnership into a professional corporation turns the business into its own, separate legal entity. However, unlike a regular corporation, the owner of a business being turned into a professional corporation must be licensed to offer a specialized professional service. In other words, the owner of the would-be PC has to be a doctor, or lawyer, or accountant, or architect; some sort of licensed profession.

Why would someone choose to form a professional corp?

Like a standard corporation, a professional corporation provides a certain amount of protection for the business owner, or owners, as a PC can carry its own debt and liabilities. It is important to note that a PC does not protect an owner from being sued as a result of their own negligence – a doctor that turns his or her practice into a PC, for example, can still be sued for malpractice. But if two doctors act as partners within a practice, forming a professional corporation can help protect one doctor from being liable for any judgement received from a lawsuit against the other doctor. So without that protection, one of the partners could be held accountable for the mistakes of the other one. Professional corporations, then, are very useful for any licensed professional running a practice with another licensed professional.

What do I have to do to form a professional corp?

First, you must be licensed to provide whatever service your practice offers in the state you do business in. Most states will want to see proof of relevant licensure at the time of incorporation, and the state licensing board will likely have to approve your articles of incorporation before you can move forward. Usually the licensing board will ask that the articles of incorporation bear special language and, depending on the state, PCs occasionally have to contend with certain laws after they are formed – for example many states ask that a professional corporation designate itself as such by including ‘PC’ or ‘Professional Corporation’ in the name of the practice.

Professional corporations take a bit more effort to form, but are extremely useful for practices run by two or more licensed professionals. After all, the last thing you want is to have to pay lawsuit that resulted from the negligence of your partner. And, like other corporations, a PC offers some protection from debtors looking to collect on a business’s liabilities. It is important, however, to check with your secretary of state and your state’s licensing board to clarify what, exactly, you must do to form a professional corporation and what special provisions you will have to contend with as a licensed PC.

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How to Finance Your Business in an Emergency

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While big business may have access to bank lines of credit and even government bailouts, small businesses usually don’t have the same financing resources. When an emergency strikes and you need cash, you need to understand how to finance your business through a rough period.

Emergencies may include major equipment failures, serious cash flow shortages due to customer defaults, unexpected lawsuits, tax liabilities, or a myriad of other situations. Regardless of the cause, you need to find cash fast to rectify any situation that threatens the stability of your business. Following are some creative methods to get financing quickly.

Factoring Invoices

A factor is a company that buys your invoices for cash. If you sell a customer $1,000 worth of goods, for example, and extend 30-day credit terms, you obviously have to wait for your cash. A factor advances 80% to 90% of that invoice to you and sends the rest when your customer pays the balance. A hefty 5% fee is not unusual, but a quick $950 is most welcome in an emergency. You do need to set up an account with a factor beforehand, but in the case of an emergency, this can be done rapidly.

Credit Card Advances

Financing a business with credit cards is not a new idea, so ask your lenders for increased credit limits to temporarily get through whatever situation has caused the cash flow difficulties. Most likely you have multiple credit cards, so a $500 limit increase on a few of those goes a long way toward solving immediate problems.

Merchant Advances

Some companies lend businesses money at high interest rates. $5,000 may end up costing you $7500, but again, if your restaurant’s freezer has failed and you can’t operate without it, you may have to go the route of merchant financing. Find these companies online.

Deposits

Certain businesses collect deposits before they do the work. Caterers commonly collect money upfront when they book a wedding or a holiday party. If you have customers who are ready to book but just haven’t gotten around to it, a few phone calls could generate some nice deposit dollars. Have your sales staff also prospect for new customers and find some quick cash that way.

Early Payment

If you have a good relationship with some prime customers, ask them to pay early for your services.  If they currently have 30-day credit terms but can pay in 15 days, ask them to do so to rake in that much needed cash.

Supplier Loans

Major suppliers may also lend you money in an emergency. Vendors need you to stay in business and you may be surprised at the reaction you get when you ask them for a short-term loan.

Relatives

When the choice is going out of business or finding cash, it may be time to ask trusted friends and relatives for a loan. You may be embarrassed to explain the circumstances, but a short-term infusion of cash from any source is very comforting (and motivating!) in an emergency.

Employees

Employees obviously know about the emergency situation that has caused the cash shortage. Perhaps ask them to delay cashing their paychecks since this will free up some cash for the company or you ask them to loan money to the business. If this is done with a note, and as long as your employees fully consent to the loan and is not a condition of employment, it is completely legal and you may be pleasantly surprised at the results.

Running out of cash is one situation all entrepreneurs fear. But sometimes it just can’t be avoided. By utilizing some of the above ideas, you can probably find the funds you need to survive. Once you learn how to finance your business in an emergency, it will be much easier in case the situation ever occurs again.

About the author:

Kristen Gramigna is Chief Marketing Officer for BluePay, a credit card processing firm that offers merchant cash advance services for businesses looking to take the next step towards success. She brings more than 15 years of experience in the bankcard industry in direct sales, sales management, and marketing to the company and also serves on its Board of Directors.

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10 Ways Small Businesses Can Start Saving Money Right Now

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Whether you are an entrepreneur who’s just starting out or a seasoned small business owner, you probably have one thing in common. Chances are you want to cut the costs of doing business. In addition to increasing profits, this allows you to reinvest in your own success. There are a number of creative ways that entrepreneurs can cut their costs. Here are ten strategies that will help you slash expenses quickly and efficiently.

Turning off computers
Energy costs can be a major line item each month. A simple way to save on electricity is to turn off computers or laptops when you’re going to be away from your desk for an extended period of time. If you know you’re in meetings for several hours or leaving the office for the day, why not turn off your computer? You can also consider an automatic device that turns of items at given times of the day, such as overnight. Doing so will save money and prolong the life of your computers and laptops. It’s a win-win for cost conscious companies.

Switching out light bulbs
Most of us have made the switch from traditional incandescent light bulbs at home to help save on energy costs, but what about at work? CFLs may have a higher upfront cost than incandescent bulbs, but the cost savings in the long-term is worth it. They last up to ten times as long and use 2/3 less energy than traditional light bulbs.

Automatic hand dryers
Do you find that your business goes through paper towels like they’re going out of style? Why not make the switch to automatic hand dryers? They also have a higher upfront cost, but they significantly cut down on the cost of paper goods. Newer automatic hand dryers are also energy efficient, using less electricity than older models.

Equipment restoration
If your business uses certain electronic or manufacturing equipment to develop products, you should consider equipment restoration to help save money. Perhaps some of your machines have stopped working entirely due to electrical failure or certain functions no longer work? Look into companies that can help get your machines up and running again. The cost will most likely be significantly lower than replacing the machines with new equipment.

Download free software
If you’re in the market for a new software program, there are numerous free resources available to budget-conscious business owners. If your software costs are getting out of control, consider looking at free or open source software. Many companies offer free trials of their programs, or entirely free options for the life of the software. So do your research, and look into alternatives to costly programs. For example, Open Office is a good possibility if you’re considering purchasing Microsoft office.

Multiple bids
If you are hiring a vendor for a particular project or working with a consulting service, it’s a good idea to get multiple bids. Don’t just hire the first company you come across because chances are you may be able to get a better deal by shopping around. A good rule of thumb is to obtain at least three bids for projects before you make a final decision. You don’t necessarily have to go with the lowest bidder, but always get quotes from vendors to compare!

Outsourcing
If you’re on a shoestring budget, look into outsourcing some of your business. Sites like Elance and Guru are good places to find freelance web designers, writers, and programmers. Often, working with an independent consultant is less expensive than hiring a full-time employee or working with a firm.

Go virtual or share space
A smart way that small businesses are cutting costs is by taking their operations virtual. If you can work out a situation where employees telecommute, then you don’t need to worry about the high cost of renting office space. If full-time telecommuting is not an option for your business, look into shared space office space. A communal office space can be much less costly than individual offices.

Google Voice
Google offers a number of free or low-cost tools for businesses. Google Voice allows you to quickly and easily set up a business phone line and voice mail without the high cost of working with a telecommunications company to get started. If saving money on communication costs is a priority for your business, try out Google Voice.

Reuse and recycle
This one probably goes without saying, but it is worth mentioning. Always make sure you reuse your scrap paper, print on both sides of the page whenever possible, and avoid printing out every email message you receive. It’s also a good idea to recycle paper and toner cartridges. Some large office supply companies offer special discounts on certain products for businesses that take advantage of their recycling programs.

There are a number of strategies for cutting costs for your business. While some strategies such as switching out old light bulbs carry a higher upfront cost, they are great money savers over the long-term. Whether you’re just starting out or you’re a seasoned entrepreneur, saving money for your small business should be a top priority.

About the author: Carl Petoskey’s vast knowledge in the business industry stems from his 15 years writing and working for various small businesses. When he’s not writing, you can find him covering LWG Consulting or other companies focused on bettering small business owners.

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Finding a Unicorn: The Quest for a Work/Life Balance

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By David Nilssen, CEO & Co-founder of Guidant Financial

The work/life balance topic is always a hot one with entrepreneurs–especially today when Smartphones keep us connected at all times. Now more than ever, professionals are faced with the impossible challenge of cultivating a healthy personal life while striving to reach their entrepreneurial goals.

So, how can you balance your personal life and your professional life?

In my opinion, you can’t. While there are always exceptions, a work/life balance is really a unicorn: it doesn’t exist.

Much as we’d like to pretend to separate the two, that’s an unreasonable feat to overcome. Put simply: If you are an entrepreneur, work is personal and personal is work.

That said, there are plenty of ways to make your life work:

  • Love what you do. When you own and/or run a business that reflects your passion, responding to necessary tasks shouldn’t feel like a burden.
  • Love the ones you’re with. If you hire employees that are not only high performing workers, but also people you’d like to hang out with, blending your two lives will be a pleasure.
  • Love new technology. There’s an app for just about everything these days; from calendars to eating reminders, you should take advantage of any technology that will organize or simplify your world.
  • Love your freedom. When you’re the boss, you get to make the choices. If you need to postpone personal errands to meet with an important client, that’s up to you; on the flip side, if you need a break to re-charge your batteries, your vacation can take priority. One of the best things about entrepreneurship is the freedom it affords you.

A great example of how to multitask in this way is to think outside of the “time” box—instead of limiting yourself to 9 – 5 with a traditional lunch break, let yourself take time in the afternoon when you need it. If your child has a special day at school, go and be a part of it; you can always make up the work later on that night after you’ve put them to bed.

Just remember that you don’t have to be everything to everyone: only to yourself.

David Nilssen is the CEO & Co-Founder of Guidant Financial. Read more tips about becoming a successful entrepreneur in his book, Making the Jump into Small Business Ownership. He can be found on Twitter at @DavidNilssen.

 

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