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Business Basics: An Employee Review… When You’re the Only Employee

Employee reviews get a bad rap – a lot of people assume they’re meant to judge a person’s work and weigh whether or not they are worth their wage. In reality, reviews are a great way to force a person to reflect on the past year, figure out what they’ve done well, and highlight potential growth areas. And you don’t suddenly outgrow their use after creating your own business. Too few small business owners actually take time to reflect on the past year; we assume we made money so, therefore, we did well enough. That’s a dangerous attitude, as it leaves you open to stagnation and contraction. This year, instead of just closing out the books and handing them to your accountant, do an employee review and really figure out just how well you did.

What do you ask?

Think back to your last employee review, and remember your manager brought up. Reviews are usually pretty standard, so you’ll be asked to come in with some accomplishments and possible improvements. There’s then a quick ten to twenty minute back and forth to sketch out goals and ideas for next year, and you’re done. Your one-person review does not need to look any different. It’s the end of the year, so you have a good idea how you did financially, but think of a few ideas or initiatives you’re particularly proud of and jot them down. Then ask what you’d change if you could do it over, and write those down as well. You’ve just outlined a plan of attack for next year. Keep doing what you do well, adjust as needed to help spur improvement, and plan out whatever new initiatives need adoption to ensure those improvements happen.

Do you have to talk to yourself?

No – in fact, if you can, involve someone else. You’re more than capable of doing this “review” on your own, but outside perspective is invaluable. We are our own echo chambers – we always wind up thinking our own ideas are good. But what you need is someone to bounce ideas off of. Someone to poke holes in your plan, and refine that sketch you just put to paper. Involving someone else also adds a bit of culpability to the process. Not only does it force you to actually think about, and write down, that list of accomplishments and improvement areas, but talking about that list means someone else knows your plan, and may ask about it periodically over the next year. Extra, external motivation is always helpful.

What’s the point?

Honestly, this process is something every business owner should do already. But running a business is tough, tiring work. And at the end of the year, when life is already hectic and you have tons to get done before January first, the last thing you’ll want to think about is next year’s plan of attack. Small business owners are great at mapping out big plans and focusing in on microscopic details. We usually aren’t great at connecting them. This employment review exercise helps by forcing us to see what works, and how we can leverage our talent to meet attainable, worthwhile goals over the course of the next year. Then, when 2016 hits, you aren’t forced to fly by the seat of your pants.

Ready to start your own business? Need some help with the process? Click here, or give us a call at 1-877-692-6772!

 

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Business Basics – When do I Hire a Manager?

As you small business grows, it’s hard to pin down the best time to hire new people. Managers are especially difficult to time correctly. In many cases, they are seen as a luxury for small business and should only be brought into your management team if absolutely necessary. hire a manager But as your company grows and your job as owner changes, managers are the key to a successful, growing small business.

Overwhelmed

When you first started you may have ended your day at 6pm, then it became 7pm, and now you leave later than you ever intended. If you find that your days are getting longer because you have to fix every little problem in you company, it’s probably time to hire a manager. As Reza Chowdhury, of AlleyWatch said in an interview with Bplans, ”You’ll likely find yourself trapped in a perpetual hamster wheel, focused on tasks that are not a good use of neither your time nor skill set. At this point, it’s time to bring in the help to allow you to focus on the big picture.” (more…)

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MyCorporation’s 2015 Small Business Industry Predictions

2015 is officially here! And business forecasters all across the internet are scrambling to their crystal balls to give their predictions as to what is, and isn’t, going to work in the new year. Of course, if you regularly follow our blog, you’d know we beat them by a good month with our infographic “2015 Small Business Industry Predictions.” But just in case you missed it, or you want a refresher as to what we think will be the best industries to start a small business in, here’s a quick rundown of what we think is going to happen.

What industries are going to do well in 2015?

Fastest growing industries

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ABCs of Small Business Industry – M is for Marketing

We are onto M in our series, and this week we are looking at the marketing and public relations industry. Marketing and PR is often seen as a hard industry to break into. There are a lot of rival firms – some big and some small – and new businesses often have trouble figuring out how to stand out. But with a good amount of experience, the right contacts, and enough work ethic, it is possible for a company to succeed in the growing marketing and PR industry. marketing industry

What do you need to start a business in the marketing industry?

Most experts say that the most important factor to a new firm’s success is marketing experience. You need friends and contacts to really succeed. And while it is totally possible to build a successful business with no experience in the marketing industry, it’s really, really hard. There are a lot of lessons you learn about marketing and PR by working within the industry, and a major part of that industry is who you know. Networking is much more effective than cold-calling.

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Fireside Chat: How Everyday Businesses Can Leverage Social Media

Are you a business owner? Are you interested in using social media to market your company, but aren’t sure how? Social media signsThen be sure to join Deborah Sweeney tomorrow, October 29th, at 11:00 AM PST/2:00 PM EST for a ‘Fireside Chat’ on how entrepreneurs can use social media to grow and brand their business, hosted by our good friends at Grasshopper! Deb will joined by Lauren Hogan of HomeAdvisor and Farbod Shoraka of BloomNation for the hour-long conversation, and will share the tips and tricks learned on her own road to social media success.

The chat will be hosted live on Google Hangouts, so be sure to RSVP so you don’t miss it. And don’t forget to follow #FRSDCHAT on Twitter to watch the conversation!

 

 

 

 

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Business Basics: Reasonable Compensation

This week we are looking at reasonable compensation, a legal necessity for anyone running a Corporation. Reasonable compensation is connected to one of the most fundamental parts of working for a company – getting paid – and yet it’s so widely misunderstood. When you form an Corporation, you create a separate, legal entity that ‘earns’ money. You then pull your wage from those earnings and pay whatever payroll taxes you owe. reasonable compensation

In order to close a loophole wherein those running the corporation could ask for an extremely low salary, pay next to no payroll taxes, and then close the wage gap with distributions, the IRS requires that all corporate officers and executive be paid ‘reasonable compensation.’ But what constitutes reasonable compensation is a little more murky.

Who needs to be concerned with reasonable compensation?

Anyone that is runs, or helps run, a C-Corporation or S-Corporation must be reasonably compensated for their work. (more…)

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Business Basics – Estimated Tax Payments

Estimated tax payments are one of the biggest shocks for new business owners. They know that they have to pay taxes, they just don’t realize they have to send in a check four times a year! Most businesses that expect to more than $1,000 – or $500 if the company is incorporated – in taxes have to make estimated payments to the IRS. And, since the next quarterly payment is due on September 15th, we thought it’d be a good idea to do a quick rundown of what estimated tax payments are.

Estimated Tax Payment

What are estimated tax payments?
Exactly what they sound like. These payments are simply what you’d normally owe on your income. However, since you don’t have an employer to withhold and send in what you owe, you have to do it instead.
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ABCs of Small Business Industry: B is for Business Services

This week we are looking at an industry very near and dear to MyCorporation – Business Services! This is a fairly broad industry, but essentially companies in it help other businesses. That could mean filing paperwork, providing tech support, processing data… the list goes on and on. Businesses helping businesses – what could be better? If you’re considering forming your own company in the business services industry, we’re here to help you out!

business services

Where do you start?

Since business services is such a broad category, it’s kind of hard to answer this question. At the very least you need a ‘Doing Business As‘ name, and should consider filing for an Employer Identification Number. You’ll also need to have all your permits and licenses in order. Unfortunately the ones you need really depend on what other industries you fall into. A tech support company, for example, would need different permits and licenses than a remote office administrator service.

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Business Basics: Return on Investment (ROI)

Welcome back to business basics! In case you’ve forgotten, every week we take a look at a basic business concept in order to try to help new business owners better understand it. This week, we are covering Return on Investment, or ROI – a fairly straightforward, but often misunderstood, part of running a business! Though you may think you know all about ROI, you could be using it incorrectly. But first… ROI

What is ROI?

Return on Investment, or ROI, is pretty easy to grasp – heck, the definition is right in the name. It’s whatever return you get after your invest in some part of your business. So if you hire 2 new salespeople, a basic measurement of ROI will be the money they bring in, minus their wages. (more…)

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