Free daily tips, information, advice and ideas
to help you better manage your small business.
Some people like to run cash businesses--pocketing the cash received. This is short-sighted and can be downright dangerous.
The IRS can get very creative in going after business owners who pocket cash received. Keep in mind that your own records can indicate discrepancies.
Examples: An upscale restaurant regularly sends out the white tablecloths to a laundry. This can indicate to an investigator just how many meals have been served. When compared to the bank account, a discrepancy might pop into view. Bakeries can be hard pressed to explain the differences between raw materials bought and goods sold. Therapists typically keep an appointment book. When bank deposits do not agree with appointment records, questions will arise that can be hard to explain.
Think carefully about your own situation. Every business keeps records of various types. These can point to a business owner who is pocketing cash.
Example: Robert ran a one-man delivery service for several clients. He picked up groceries from the supermarket and delivered to customers who paid in cash. He expanded to deliver auto parts to garages, restaurant meals to shut-ins, and had an arrangement with a couple of pizza parlors. The payments and tips went into his pocket--until the IRS caught up with him. In an audit of an auto repair shop, an alert auditor noticed the deliveries and that led the IRS to Robert. He could have grown his delivery service into a bigger operation, but he fell into the trap of spending all the cash he received.
Once the IRS gets on a trail, they do not stop. These are people with their own careers to protect. Like any good employee, an auditor is building a reputation and resume.
Example: Bill ran a small printing operation. Frequently, customers paid him in cash. Bill always deposited the cash into his business checking account. This practice kept the records clean and in perfect order. The IRS found no problems when they came calling on a routine audit of the operation.
There are many legitimate ways to get funds out of a business and into your personal account. Talk to your accountant or tax professional. Whatever you do, don't pocket cash received from your customers and clients.
Over a lifetime, I have started up and operated several small businesses. Fortunately, I had good advice from the very beginning. One of the best pieces of advice I ever received was "Never pocket cash received."
Thursday, January 15, 2015
Wednesday, January 14, 2015
Two party promotions
Free daily tips, information, advice, and ideas
to help you better manage your small business.
Successful businesses promote. Ways to promote can vary widely from business to business. What works for a small cafe might not work for a car wash.
Some promotions work well in many businesses. Open houses, information sessions, and demonstrations can work for just about everyone.
Set these up yourself, or get together with another business person to offer two party promotions. These promotional activities are easy to organize and they cost little, or nothing in some cases.
Example: A small neighborhood restaurant brings in a group of musicians who perform Irish music on authentic instruments. The musicians do it for the love of the music--and a venue where they can practice and perform. People come to expect the music every Sunday afternoon, and the restaurant is more successful than before. Both parties win.
Example: Spas and salons bring in holistic practitioners to offer introductory sessions explaining their services. The sessions create lots of buzz for the spas and salons, not only among regular clients but among referrals as well. The sessions can lead to more substantive sessions for the nutritionists, hypnosis experts, Reiki and massage practitioners, and others.
Example: A garden center hosts free sessions by experienced gardeners aimed at a public hungry for expertise in horticulture. The sessions are very popular in spring. In summer, the garden center brings in experts to demonstrate how to build fences, how to use pavers to create patios and walkways, and other outdoor activities of interest to homeowners.
Example: A winery hosts art shows as well as artists creating their plein-air works out among the vines in the vineyard. Artists make contacts and come away with sales opportunities not otherwise available to them. The winery attracts more upscale visitors to sample their wines--and buy a case to take home. Both parties are winners.
To set up your own two party promotions, think outside the box. What can get attention? What are the interests of my customers? How do I contain costs? Are there new types of customers I want to attract?
When you've homed in on your two party promotional event, get the word out. Post on your website, Facebook and other social media.
Two party promotions can be very effective in tapping into new customer streams. The excitement created in the community will help spread the word--you'll get more referrals.
to help you better manage your small business.
Successful businesses promote. Ways to promote can vary widely from business to business. What works for a small cafe might not work for a car wash.
Some promotions work well in many businesses. Open houses, information sessions, and demonstrations can work for just about everyone.
Set these up yourself, or get together with another business person to offer two party promotions. These promotional activities are easy to organize and they cost little, or nothing in some cases.
Example: A small neighborhood restaurant brings in a group of musicians who perform Irish music on authentic instruments. The musicians do it for the love of the music--and a venue where they can practice and perform. People come to expect the music every Sunday afternoon, and the restaurant is more successful than before. Both parties win.
Example: Spas and salons bring in holistic practitioners to offer introductory sessions explaining their services. The sessions create lots of buzz for the spas and salons, not only among regular clients but among referrals as well. The sessions can lead to more substantive sessions for the nutritionists, hypnosis experts, Reiki and massage practitioners, and others.
Example: A garden center hosts free sessions by experienced gardeners aimed at a public hungry for expertise in horticulture. The sessions are very popular in spring. In summer, the garden center brings in experts to demonstrate how to build fences, how to use pavers to create patios and walkways, and other outdoor activities of interest to homeowners.
Example: A winery hosts art shows as well as artists creating their plein-air works out among the vines in the vineyard. Artists make contacts and come away with sales opportunities not otherwise available to them. The winery attracts more upscale visitors to sample their wines--and buy a case to take home. Both parties are winners.
To set up your own two party promotions, think outside the box. What can get attention? What are the interests of my customers? How do I contain costs? Are there new types of customers I want to attract?
When you've homed in on your two party promotional event, get the word out. Post on your website, Facebook and other social media.
Two party promotions can be very effective in tapping into new customer streams. The excitement created in the community will help spread the word--you'll get more referrals.
Tuesday, January 13, 2015
Plan every day
Free daily tips, information, advice and ideas
to help you better manage your small business.
Business planning is not difficult. You already do it all the time.
Planning is all about customers/clients. No matter your business, the future depends on them. Customers/clients are the foundation. Today's customers/clients tell you where you are. Tomorrow's tell you where you're headed.
A formal business plan puts all this into perspective. It's what you deserve to have in hand before you make a big expansion move. It's what your banker wants to see when you go for that expansion loan.
Writing up a business plan begins today. The most important part of your plan is your present customer/client base and how you plan to expand to include more.
Pay close attention to your present customers/clients. Get to know them. Get to know how, what and when they buy products and services. Find out what else they want--how you can serve them better. This takes careful attention.
The same applies to the direction in which you're headed. What new base of customers are you targeting? How, what and when will they buy the new products and services you are thinking about offering? What else might they want?
Examples: You are a chiropractor, and you're getting questions from present clients about the benefits of seeing a massage therapist. You run a restaurant, and you're getting requests for gluten-free preparations. You operate a small print shop, and you're asked for a referral to handle small mailings. You have a yoga studio, and people are asking you to recommend a nutritionist. You are an attorney, and you get a call asking for a recommendation for someone to handle a worker's comp claim. You are a landscaper, but can you build a patio? You can troubleshoot and repair my computer networks, but can you help me with social media?
All these examples are clues to possible expansions of small businesses. These clues come from customers/clients looking for products and services to better serve their needs. And they can point the way to your expansion.
Clues come to you almost daily when you're in small business. Don't dismiss these clues. They are valuable planning initiators. Does the question trigger a possible expansion direction for your business?
Expansions can be as simple as adding a new line of products/services. Or you can decide to go off in a completely new direction. Either way, take a hard and in-depth look at the market that will support the new line or the new direction.
Seeing to your planning every day can be of enormous help when the time comes to write up a formal business plan. You already do the daily stuff. Now it's all about the future market. Put the daily stuff together with the future market and you're ready for the banker when he asks to see your business plan.
Don't go all wobbly when you're asked for your business plan. You plan every day. It's now a matter of pulling it all together and matching it with the future market for your goods and services.
to help you better manage your small business.
Business planning is not difficult. You already do it all the time.
Planning is all about customers/clients. No matter your business, the future depends on them. Customers/clients are the foundation. Today's customers/clients tell you where you are. Tomorrow's tell you where you're headed.
A formal business plan puts all this into perspective. It's what you deserve to have in hand before you make a big expansion move. It's what your banker wants to see when you go for that expansion loan.
Writing up a business plan begins today. The most important part of your plan is your present customer/client base and how you plan to expand to include more.
Pay close attention to your present customers/clients. Get to know them. Get to know how, what and when they buy products and services. Find out what else they want--how you can serve them better. This takes careful attention.
The same applies to the direction in which you're headed. What new base of customers are you targeting? How, what and when will they buy the new products and services you are thinking about offering? What else might they want?
Examples: You are a chiropractor, and you're getting questions from present clients about the benefits of seeing a massage therapist. You run a restaurant, and you're getting requests for gluten-free preparations. You operate a small print shop, and you're asked for a referral to handle small mailings. You have a yoga studio, and people are asking you to recommend a nutritionist. You are an attorney, and you get a call asking for a recommendation for someone to handle a worker's comp claim. You are a landscaper, but can you build a patio? You can troubleshoot and repair my computer networks, but can you help me with social media?
All these examples are clues to possible expansions of small businesses. These clues come from customers/clients looking for products and services to better serve their needs. And they can point the way to your expansion.
Clues come to you almost daily when you're in small business. Don't dismiss these clues. They are valuable planning initiators. Does the question trigger a possible expansion direction for your business?
Expansions can be as simple as adding a new line of products/services. Or you can decide to go off in a completely new direction. Either way, take a hard and in-depth look at the market that will support the new line or the new direction.
Seeing to your planning every day can be of enormous help when the time comes to write up a formal business plan. You already do the daily stuff. Now it's all about the future market. Put the daily stuff together with the future market and you're ready for the banker when he asks to see your business plan.
Don't go all wobbly when you're asked for your business plan. You plan every day. It's now a matter of pulling it all together and matching it with the future market for your goods and services.
Monday, January 12, 2015
Promotion ideas
Free daily tips, information, advice, and ideas
to help you better manage your small business.
You need to think beyond holidays to promote your business. You can turn any day into a holiday if you think outside the box.
Example: A florist I know concentrates on promoting his design capabilities. Of course, beautiful flowers are traditional for Mother's Day. It's the biggest day of the year for florists. But he does more. He emails and posts on social media pictures of his designs far ahead of Mother's Day. Beginning in early March, he reaches out to customers, reminding them that he has fresh or custom designs for birthdays, anniversaries, corporate meetings, and more. And, oh yes, remember Mother's Day is coming up.
Today's advertising is much more than an ad in the newspaper. And it can be more than a special reminder of an upcoming special day. Social media has seen to this.
Example: I know an Internet operation built entirely around brownies. Brownies are shipped anywhere. There is no bricks-and-mortar store. Only Internet orders are filled. Regularly, emails are sent out to customers. The email consists of three words: "Time for brownies?" It accompanies a close-up picture of a scrumptious, chocolaty, nut-filled brownie. That's it. Who can resist? The picture of the brownie creates the need for a personal holiday, and the orders come in--for corporate events, organizational meetings, private parties.
Thinking outside the box can help you with promotions. You can tap into holiday excitement or create one of your own. Customers are busy with their own lives. And they might appreciate the picture of a floral design or a brownie you send along. You are becoming part of their lives.
Example: I know an ice cream parlor (yes, they still exist) that devotes most of its space to special events the customers hold there. Birthdays, anniversaries, corporate get-togethers, and parties are much more fun when held in an old fashioned ice cream parlor. It has the red leather covered stools, the gleaming counter, and black and white tiles cover the floor. Of course, much more than ice cream is offered--with frozen yogurt, sugarless concoctions, biscotti and lattes all around. Instead of being just a summertime destination, the place hops all year. Customers schedule their events, and they don't have to worry about cleaning up.
Of course you promote for holidays. But don't miss opportunities that can turn every day into a holiday for your customers.
Businesses build events around more than food and flowers. Chiropractors, fitness instructors, nutritionists, yoga practitioners and others set up open houses offering free talks, demonstrations, question and answer sessions. These types of events attract community attention--and referrals.
to help you better manage your small business.
You need to think beyond holidays to promote your business. You can turn any day into a holiday if you think outside the box.
Example: A florist I know concentrates on promoting his design capabilities. Of course, beautiful flowers are traditional for Mother's Day. It's the biggest day of the year for florists. But he does more. He emails and posts on social media pictures of his designs far ahead of Mother's Day. Beginning in early March, he reaches out to customers, reminding them that he has fresh or custom designs for birthdays, anniversaries, corporate meetings, and more. And, oh yes, remember Mother's Day is coming up.
Today's advertising is much more than an ad in the newspaper. And it can be more than a special reminder of an upcoming special day. Social media has seen to this.
Example: I know an Internet operation built entirely around brownies. Brownies are shipped anywhere. There is no bricks-and-mortar store. Only Internet orders are filled. Regularly, emails are sent out to customers. The email consists of three words: "Time for brownies?" It accompanies a close-up picture of a scrumptious, chocolaty, nut-filled brownie. That's it. Who can resist? The picture of the brownie creates the need for a personal holiday, and the orders come in--for corporate events, organizational meetings, private parties.
Thinking outside the box can help you with promotions. You can tap into holiday excitement or create one of your own. Customers are busy with their own lives. And they might appreciate the picture of a floral design or a brownie you send along. You are becoming part of their lives.
Example: I know an ice cream parlor (yes, they still exist) that devotes most of its space to special events the customers hold there. Birthdays, anniversaries, corporate get-togethers, and parties are much more fun when held in an old fashioned ice cream parlor. It has the red leather covered stools, the gleaming counter, and black and white tiles cover the floor. Of course, much more than ice cream is offered--with frozen yogurt, sugarless concoctions, biscotti and lattes all around. Instead of being just a summertime destination, the place hops all year. Customers schedule their events, and they don't have to worry about cleaning up.
Of course you promote for holidays. But don't miss opportunities that can turn every day into a holiday for your customers.
Businesses build events around more than food and flowers. Chiropractors, fitness instructors, nutritionists, yoga practitioners and others set up open houses offering free talks, demonstrations, question and answer sessions. These types of events attract community attention--and referrals.
Friday, January 9, 2015
Negotiate success
Free daily tips, information, advice, ideas
to help you better manage your small business.
Everyone negotiates. Children learn early in life that they must negotiate with their parents to get what they want.
As we grow up, we learn to negotiate at every turn. In your vehicle you negotiate your way through an intersection. In a store, you negotiate your way through the aisles to find what you are looking for.
Before you sign that lease for space, you negotiate terms. At your bank, you negotiate your way to the terms that best suit you.
Example: To negotiate, you need leverage. One way to get better terms on that space you want is to show the landlord that you know something about the future economy. Landlords want certainty. In an economy that is iffy, you might get better terms on the "little" stuff by offering to sign for 5 years instead of 3. Sometimes, this can bring the monthly rate down. Plus, the "little" stuff can mean more to you than to the landlord. These might include lower electricity rates, heating costs, or some construction changes. Landlords might be willing to exchange these for the longer term lease--and the certainty it brings.
If you have never been involved in negotiating, then you need some experience. A simple way to begin is at the local flea market. You spy a coffee mug priced at $10. You offer the seller $5. The seller counters with $8. You say you might go $6. You home in on the difference and the mug is yours for $7. Back at your place, you set the mug on the shelf--it will never hold coffee. It is a trophy and a constant reminder of your negotiating.
While this little activity is a simplistic learning experience, it can serve you well. The target of negotiating is to reduce costs. It works with landlords, bankers, suppliers, and others.
Basically, you put yourself in the other person's shoes. What is most important to the other side? With a landlord, it is to get the space rented. With the flea market, it is to make a sale. Structure the deal to give the other side what they really want, and at the same time look to save yourself some dollars.
Negotiating is easy once you get the hang of it. Just remember, you're working BOTH sides to bring the other party into line with what you want.
to help you better manage your small business.
Everyone negotiates. Children learn early in life that they must negotiate with their parents to get what they want.
As we grow up, we learn to negotiate at every turn. In your vehicle you negotiate your way through an intersection. In a store, you negotiate your way through the aisles to find what you are looking for.
Before you sign that lease for space, you negotiate terms. At your bank, you negotiate your way to the terms that best suit you.
Example: To negotiate, you need leverage. One way to get better terms on that space you want is to show the landlord that you know something about the future economy. Landlords want certainty. In an economy that is iffy, you might get better terms on the "little" stuff by offering to sign for 5 years instead of 3. Sometimes, this can bring the monthly rate down. Plus, the "little" stuff can mean more to you than to the landlord. These might include lower electricity rates, heating costs, or some construction changes. Landlords might be willing to exchange these for the longer term lease--and the certainty it brings.
If you have never been involved in negotiating, then you need some experience. A simple way to begin is at the local flea market. You spy a coffee mug priced at $10. You offer the seller $5. The seller counters with $8. You say you might go $6. You home in on the difference and the mug is yours for $7. Back at your place, you set the mug on the shelf--it will never hold coffee. It is a trophy and a constant reminder of your negotiating.
While this little activity is a simplistic learning experience, it can serve you well. The target of negotiating is to reduce costs. It works with landlords, bankers, suppliers, and others.
Basically, you put yourself in the other person's shoes. What is most important to the other side? With a landlord, it is to get the space rented. With the flea market, it is to make a sale. Structure the deal to give the other side what they really want, and at the same time look to save yourself some dollars.
Negotiating is easy once you get the hang of it. Just remember, you're working BOTH sides to bring the other party into line with what you want.
Thursday, January 8, 2015
Facing the music
Free daily tips, information, advice, and ideas
to help you better manage your small business.
To grow your small business, you need to face the music from time to time. Old songs lose their edge. Singing styles change.
The music that moved you in the past can begin to show its age. When this happens, get yourself into a quiet place. Leave behind your phone, television and all the other technological goodies that can distract you.
Ask yourself some honest questions. Start the process to get some honest answers to help you better manage your small business.
1. Where am I headed? Do I need to rethink this thing? Despite the daily grind, am I as enthusiastic as when I began? Do I spring out of bed every morning, anxious to tackle a new day's activities? Can I expect to retire one day?
2. Am I in the right business? Has the world passed me by? Am I drifting? Does the marketplace adequately support what I'm doing? Should I consider changing my direction? Should I close the door and begin again? What is the market anyway?
3. Can I grow internally? Do I need additional funding to take the next step? Does my business plan support the road I'm taking? Do I need a new business plan? Do I really know and appreciate the value of a business plan?
4. Am I comfortable using the new social media? Do I need to educate myself in the value of social media? Which of the various social media alternatives can best help me in my business? How do I use social media to grow and expand?
This is not a weekly exercise. But it can prove very useful to do a couple of times each year.
Asking these questions in that quiet place will result in an amazing thing. It will focus you on the future of what you're doing. It will help clarify goals. It will bring the long term aspects of your small business to bear on the daily grind.
With answers comes a fresh look. Not necessarily at the time you put yourself through the question and answer period, but at odd times later on. All sorts of ideas will begin to pop into your mind. It's a way to force some organization on the mental processes. It helps you get beyond the daily stresses.
It's good to face the music now and then.
Don't limit your questions to those I've provided. Come up with some of your own. The process will get your mind out of the everyday stuff that can bog you down. It helps you take the long view.
to help you better manage your small business.
To grow your small business, you need to face the music from time to time. Old songs lose their edge. Singing styles change.
The music that moved you in the past can begin to show its age. When this happens, get yourself into a quiet place. Leave behind your phone, television and all the other technological goodies that can distract you.
Ask yourself some honest questions. Start the process to get some honest answers to help you better manage your small business.
1. Where am I headed? Do I need to rethink this thing? Despite the daily grind, am I as enthusiastic as when I began? Do I spring out of bed every morning, anxious to tackle a new day's activities? Can I expect to retire one day?
2. Am I in the right business? Has the world passed me by? Am I drifting? Does the marketplace adequately support what I'm doing? Should I consider changing my direction? Should I close the door and begin again? What is the market anyway?
3. Can I grow internally? Do I need additional funding to take the next step? Does my business plan support the road I'm taking? Do I need a new business plan? Do I really know and appreciate the value of a business plan?
4. Am I comfortable using the new social media? Do I need to educate myself in the value of social media? Which of the various social media alternatives can best help me in my business? How do I use social media to grow and expand?
This is not a weekly exercise. But it can prove very useful to do a couple of times each year.
Asking these questions in that quiet place will result in an amazing thing. It will focus you on the future of what you're doing. It will help clarify goals. It will bring the long term aspects of your small business to bear on the daily grind.
With answers comes a fresh look. Not necessarily at the time you put yourself through the question and answer period, but at odd times later on. All sorts of ideas will begin to pop into your mind. It's a way to force some organization on the mental processes. It helps you get beyond the daily stresses.
It's good to face the music now and then.
Don't limit your questions to those I've provided. Come up with some of your own. The process will get your mind out of the everyday stuff that can bog you down. It helps you take the long view.
Wednesday, January 7, 2015
Business direction
Free daily tips, information, advice, and ideas
to help you better manage your small business.
Businesses change directions all the time. Some of this is business drift--your operation tends to drift in one direction or another. Other times, you deliberately nudge your business in another direction.
Example: A small machine shop had been a family operation for many years. The shop had long ago installed the computer-driven machines to serve customers in aerospace, medical, and other corporate operations. Then along came the 3-D machines that could produce parts in plastics and metals. The machine shop owner was reluctant in the beginning to jump too quickly. But 3-D printing showed the promise of revolutionizing the industry. He installed one of the machines, began training his people, and began turning out useful pieces--some of which could expand the market he served.
This shows how technology can sometimes offer your business an opportunity to make a quantum leap forward. No matter your business, watch for technological improvements that can affect your industry.
Example: Food is always on everyone's mind. Not only must we eat, but today the concern has moved to what we eat. A small farmer can make a good living today growing and selling fresh produce in the local market--I know several who do. One of them is bringing to market a product new to his offerings of a variety of lettuces, spinach, and seasonal vegetables. The new products are the flower buds produced in spring from last year's kale crop. It's fresh, it's kale, it's new--all the elements to excite the marketplace. People use the kale buds in various ways. I would throw them into an omelet--the same can be done with milkweed buds or day lily buds. And a chef can come up with some pricey new dishes to add to the menu.
Think outside the box to come up with ways to change the direction of your business. But exercise care. If you wave goodbye to your present business and set off on new oceans, make certain you can predict and weather the storms ahead.
Changing business direction can be a good thing. New directions beckon all the time. Be careful with business drift, however. You can drift into dead ends.
to help you better manage your small business.
Businesses change directions all the time. Some of this is business drift--your operation tends to drift in one direction or another. Other times, you deliberately nudge your business in another direction.
Example: A small machine shop had been a family operation for many years. The shop had long ago installed the computer-driven machines to serve customers in aerospace, medical, and other corporate operations. Then along came the 3-D machines that could produce parts in plastics and metals. The machine shop owner was reluctant in the beginning to jump too quickly. But 3-D printing showed the promise of revolutionizing the industry. He installed one of the machines, began training his people, and began turning out useful pieces--some of which could expand the market he served.
This shows how technology can sometimes offer your business an opportunity to make a quantum leap forward. No matter your business, watch for technological improvements that can affect your industry.
Example: Food is always on everyone's mind. Not only must we eat, but today the concern has moved to what we eat. A small farmer can make a good living today growing and selling fresh produce in the local market--I know several who do. One of them is bringing to market a product new to his offerings of a variety of lettuces, spinach, and seasonal vegetables. The new products are the flower buds produced in spring from last year's kale crop. It's fresh, it's kale, it's new--all the elements to excite the marketplace. People use the kale buds in various ways. I would throw them into an omelet--the same can be done with milkweed buds or day lily buds. And a chef can come up with some pricey new dishes to add to the menu.
Think outside the box to come up with ways to change the direction of your business. But exercise care. If you wave goodbye to your present business and set off on new oceans, make certain you can predict and weather the storms ahead.
Changing business direction can be a good thing. New directions beckon all the time. Be careful with business drift, however. You can drift into dead ends.
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