Free daily tips, information, advice and ideas
to help you better manage your small business.
Nothing is more disruptive in business than a visit from the IRS. You can get a letter or they can show up at your door.
It can be a simple audit or a request for more information or something worse. No matter the contact, suddenly you have a whole new set of problems and unknowns.
Example: Marie ran her consulting business from her home. On advice of her accountant, she had set up a home office--a room where she conducted her business. Her home office was where she made calls, installed her computer, maintained her files, and worked every day from 9 to 5 with a few breaks as well as outside visits to clients. When the IRS came calling and requested an audit, everything was in order.
Example: John operated an upscale restaurant. Sometimes, diners paid in cash. When this occurred, John pocketed the money--nothing appeared on the accounts, so he thought he was safe from an IRS audit. When an agent showed up, John opened his books and provided all his records. The agent left and John smiled to himself. Then he was hit with a bill for unpaid back taxes and a stiff fine. When the agent visited, he had counted the tables and the white tablecloths that covered them. Checked against the laundry bills, the agent found that John was serving many more meals than he had accounted for, otherwise there would be no need for the big laundry bills. Food bills also indicated that many more meals were being served than reported.
Example: Joline ran a small gift shop. When customers were ready to pay, she would offer a discount for cash. Many accepted the lower amount and handed Joline cash. By pocketing the cash, Joline lowered her federal and state taxes--both on income and sales taxes. It all fell apart when one of her customers happened to be an IRS agent.
When you don't follow the rules, expect to get caught. Many legitimate ways exist to save on taxes. Legal loopholes and strategies can help you run your business and sleep better at night.
If you don't know how to deal with the IRS, get yourself a good accountant who knows the rules. You need someone who has been dealing with the IRS for many years. Frequently, these people know the rules better than IRS agents. A word or two from them will help you avoid lots of problems in the future.
Tuesday, July 7, 2015
Monday, July 6, 2015
Today it's videos
Free daily tips, information, advice and ideas
to help you better manage your small business.
You've heard it. It's all over television. "But wait! For the price of one, we'll send you TWO with FREE shipping."
Certain words and phrases always attract attention. No matter how many times we hear "But wait!" or "SALE" or "FREE" we react.
The reason has to do with boredom. Boredom is toxic. Our brains are wired to avoid boredom.
No one likes to walk the same path over and over again. It can be boring to eat the same meal day after day. Fashions continually change to avoid boredom. Only a few classic movies ever get watched a second time.
"But wait!" and "SALE" and "FREE" tell us that something new is coming our way. These words attract our attention because something unexpected follows. It's all about us, not the product or service.
Pictures perform much the same function. A still photo invites us to wonder what's going on and what's to follow. A moving picture takes it to the next level. So Facebook has added video, and it was as predictable as sunshine follows rain.
Example: Charlene struggled to sell enough of her handmade silk scarves to support herself. She priced the scarves high to better define her target market. She placed some on consignment in upscale shops and she offered them on her website. This brought in more sales. Still, it was not enough to pay for her daughter's college bills. She decided to take the plunge and make a video. It was a short 3-minute affair that she posted on social media. In the video her scarves floated in the breeze, they wrapped around necks, they fluffed atop chic outfits and complemented hair styles. Today, Charlene struggles to keep pace with orders--which, of course, she ships "FREE".
When you are promoting your business, keep your target market in mind. Always avoid boredom, because boredom will send your clients/customers looking to your competition for relief.
Certain words and phrases are more valuable to light the fires of interest in your products and services. Pictures can do a job better than words--especially when you turn pictures into videos.
Videos invite participation by people you are trying to attract. Get out of the boredom business. Get creative and reach out to new clients and customers with a video.
to help you better manage your small business.
You've heard it. It's all over television. "But wait! For the price of one, we'll send you TWO with FREE shipping."
Certain words and phrases always attract attention. No matter how many times we hear "But wait!" or "SALE" or "FREE" we react.
The reason has to do with boredom. Boredom is toxic. Our brains are wired to avoid boredom.
No one likes to walk the same path over and over again. It can be boring to eat the same meal day after day. Fashions continually change to avoid boredom. Only a few classic movies ever get watched a second time.
"But wait!" and "SALE" and "FREE" tell us that something new is coming our way. These words attract our attention because something unexpected follows. It's all about us, not the product or service.
Pictures perform much the same function. A still photo invites us to wonder what's going on and what's to follow. A moving picture takes it to the next level. So Facebook has added video, and it was as predictable as sunshine follows rain.
Example: Charlene struggled to sell enough of her handmade silk scarves to support herself. She priced the scarves high to better define her target market. She placed some on consignment in upscale shops and she offered them on her website. This brought in more sales. Still, it was not enough to pay for her daughter's college bills. She decided to take the plunge and make a video. It was a short 3-minute affair that she posted on social media. In the video her scarves floated in the breeze, they wrapped around necks, they fluffed atop chic outfits and complemented hair styles. Today, Charlene struggles to keep pace with orders--which, of course, she ships "FREE".
When you are promoting your business, keep your target market in mind. Always avoid boredom, because boredom will send your clients/customers looking to your competition for relief.
Certain words and phrases are more valuable to light the fires of interest in your products and services. Pictures can do a job better than words--especially when you turn pictures into videos.
Videos invite participation by people you are trying to attract. Get out of the boredom business. Get creative and reach out to new clients and customers with a video.
Friday, July 3, 2015
Easy expansions
Free daily tips, information, advice and ideas
to help you better manage your small business.
Expanding your business can be easier than you might think. It can boil down to choosing one or more of the paths open to you already.
Example: Sue is a massage therapist. She concentrates on Swedish massage. When she added hot stone massage and other types of massage, Sue expanded her appeal in the marketplace.
Example: John runs a pet supply store. His customers are people looking for pet foods, supplies, and supplements. He decided to add installation of in-ground dog fences. It proved to be a lucrative expansion for John's operation.
Example: Alicia is a chiropractor. When she noticed that her clients also were interested in healthy eating, she made arrangements with a nutritionist to give talks and hand out information every Friday. This attracted new clients, so she added nutrition to her business.
Example: Joline has an acupuncture practice. To get the word out, she added a community acupuncture room--for $20, people came to the room, lay down and got a brief acupuncture session. It was a popular addition to her business for stressed out people. Some of these people became regular clients for more extensive acupuncture. Just as important, it attracted the attention of doctors who referred clients.
Example: Bob runs a small garden center. When he set up a special website to sell native plants, he attracted new customers to his garden center and he expanded his business by selling on the web. He also brought in specialists (partnering with local landscapers) to hold free demonstrations on designing landscapes, building walkways and fire pits. All this expanded Bob's garden center.
Example: Linda is a caterer. She specialized in catering events for clients--parties for individuals and small corporate events. She expanded by partnering with businesses that offered tents, dance floors, tables and chairs, etc. Suddenly Linda was addressing the marketplace in a new and bigger way.
Example: Chris runs a frame shop. He handles primarily corporate clients and walk-ins. To expand, he made arrangements with artists to display their works in his place and on his website. Decorators began calling and he worked with them on their projects. It was an area of the marketplace that he had not previously handled.
Every business has expansion opportunities readily available to them. It's a matter of seeing what best fits with your long term plans.
Opportunities are around every corner. Keep abreast of the market. What are people looking for? How do they find you? Are you using social media to reach out and draw new clients/customers to you?
Never jump into an expansion of your business without some serious thought. Know ahead of time how it will affect your business. Before you take the plunge, make certain that it fits with your overall business plan.
to help you better manage your small business.
Expanding your business can be easier than you might think. It can boil down to choosing one or more of the paths open to you already.
Example: Sue is a massage therapist. She concentrates on Swedish massage. When she added hot stone massage and other types of massage, Sue expanded her appeal in the marketplace.
Example: John runs a pet supply store. His customers are people looking for pet foods, supplies, and supplements. He decided to add installation of in-ground dog fences. It proved to be a lucrative expansion for John's operation.
Example: Alicia is a chiropractor. When she noticed that her clients also were interested in healthy eating, she made arrangements with a nutritionist to give talks and hand out information every Friday. This attracted new clients, so she added nutrition to her business.
Example: Joline has an acupuncture practice. To get the word out, she added a community acupuncture room--for $20, people came to the room, lay down and got a brief acupuncture session. It was a popular addition to her business for stressed out people. Some of these people became regular clients for more extensive acupuncture. Just as important, it attracted the attention of doctors who referred clients.
Example: Bob runs a small garden center. When he set up a special website to sell native plants, he attracted new customers to his garden center and he expanded his business by selling on the web. He also brought in specialists (partnering with local landscapers) to hold free demonstrations on designing landscapes, building walkways and fire pits. All this expanded Bob's garden center.
Example: Linda is a caterer. She specialized in catering events for clients--parties for individuals and small corporate events. She expanded by partnering with businesses that offered tents, dance floors, tables and chairs, etc. Suddenly Linda was addressing the marketplace in a new and bigger way.
Example: Chris runs a frame shop. He handles primarily corporate clients and walk-ins. To expand, he made arrangements with artists to display their works in his place and on his website. Decorators began calling and he worked with them on their projects. It was an area of the marketplace that he had not previously handled.
Every business has expansion opportunities readily available to them. It's a matter of seeing what best fits with your long term plans.
Opportunities are around every corner. Keep abreast of the market. What are people looking for? How do they find you? Are you using social media to reach out and draw new clients/customers to you?
Never jump into an expansion of your business without some serious thought. Know ahead of time how it will affect your business. Before you take the plunge, make certain that it fits with your overall business plan.
Thursday, July 2, 2015
Business at home
Free daily tips, information, advice and ideas
to help you better manage your small business.
In business you move with the times. The marketplace is continually changing, and so is technology.
With today's technologies, it is easy to hire others, make sales, expand your business and grow--all from a home office. You can even eliminate the home office and do your business on the run.
Technology of course includes things such as your desktop computer, your fancy phone, and a reliable printer. But it also includes ways to promote and get paid, various shipping possibilities, and more.
Examples: Personal trainers, nutritionists and teachers of all sorts can meet their clients at the clients' homes. So can some holistic healers and massage therapists. Consultants and coaches can start out at home and then grow into private offices. I know a doctor who closed his office and now sees his private patients at their homes--his office is in the trunk of his car.
More examples: Tradespeople have long worked from home offices. This includes electricians, plumbers, locksmiths, cleaners, repair specialists and others. Artists and artisans typically work from home in a barn or attic studio, reaching out to the marketplace to make sales or arrange showings.
In business, you move with the times, and you do whatever is necessary. You are creative and flexible, or you would not be in business
Working from home is an easy way to start a business. I know, I did it myself. Finally, my wife told me in no uncertain terms that I had to get the business out of the dining room.
Example: In my own case, I found that getting the office out of the home was harder than I had imagined. Suddenly I had a monthly rent to pay, an office to maintain, and someone had to see to the cleaning. It was up to me to take out the trash and turn off the lights.
Some businesses cannot be run from home--think machine shops, manufacturers of various types, pizza shops, and others. But a dress shop? Furniture store? You already have competitors on the net.
Whatever your business idea, do that business plan first. And if you are starting out at home, and plan to move out one day, make sure you show the transition in your business plan.
Wednesday, July 1, 2015
Grow your clients
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to help you better manage your small business.
Opportunities to grow your business are all around you. One way is to grow your clients--educating them in all the things you do.
Clients tend to put you and your business into a narrow category. When I need this, I call Angie. When I want that, I call Jim.
Example: John designs websites for clients. When he began to make it a point of telling each one of them that he could also set them up on social media, the calls came in. His clients had not made the connection until John told them.
Example: Sue is a hypnotherapist. She specializes in offering sessions on weight reduction and stopping smoking. Recently, Sue reached out to local physicians, informing them that she could help their patients with weight reduction and stopping smoking. It resulted in more calls. When Sue informed the physicians that she would also work with patients to handle pain management, even more calls came in.
Example: Russ is an independent insurance agent. He has built up a client base filling various needs--homeowner's insurance, flood, accident, life. He began reminding clients that he could write other types of insurance--loss of business, key man or partners insurance, etc. This has expanded his business.
Example: Donna's restaurant was a go-to place for healthy meals. Customers regularly returned and referred others. Donna also offered catering, but she did not remind people often enough that she could handle their parties and special events. When she began reminding her regulars that she also did catering, business picked up. Using social media helped even more.
Every business tends to settle into a comfortable routine with the customers and clients. And they tend to do the same thing.
Remind people of all the things your business can provide. Work it into a conversation, print it on your business cards, give a talk, put it up on social media.
Unless you remind customers and clients of all the things you can do for them, you'll lose some of their business to your competition. People tend to think of you in one way only--break out!
to help you better manage your small business.
Opportunities to grow your business are all around you. One way is to grow your clients--educating them in all the things you do.
Clients tend to put you and your business into a narrow category. When I need this, I call Angie. When I want that, I call Jim.
Example: John designs websites for clients. When he began to make it a point of telling each one of them that he could also set them up on social media, the calls came in. His clients had not made the connection until John told them.
Example: Sue is a hypnotherapist. She specializes in offering sessions on weight reduction and stopping smoking. Recently, Sue reached out to local physicians, informing them that she could help their patients with weight reduction and stopping smoking. It resulted in more calls. When Sue informed the physicians that she would also work with patients to handle pain management, even more calls came in.
Example: Russ is an independent insurance agent. He has built up a client base filling various needs--homeowner's insurance, flood, accident, life. He began reminding clients that he could write other types of insurance--loss of business, key man or partners insurance, etc. This has expanded his business.
Example: Donna's restaurant was a go-to place for healthy meals. Customers regularly returned and referred others. Donna also offered catering, but she did not remind people often enough that she could handle their parties and special events. When she began reminding her regulars that she also did catering, business picked up. Using social media helped even more.
Every business tends to settle into a comfortable routine with the customers and clients. And they tend to do the same thing.
Remind people of all the things your business can provide. Work it into a conversation, print it on your business cards, give a talk, put it up on social media.
Unless you remind customers and clients of all the things you can do for them, you'll lose some of their business to your competition. People tend to think of you in one way only--break out!
Tuesday, June 30, 2015
Business thinking
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to help you better manage your small business.
Our brains are like giant computers. But there is a big difference.
Computers are built from little components that give them their power. They are organized in such a way to give us pathways to solve all sorts of problems.
Brains also consist of little pieces. Brains have great potential. But until the brain is organized, it flails about from one perception to the next, absorbing everything it encounters.
Brains get organized by moms and dads, by language and culture, by education and experience, and by trial and error.
People program computers, and people program brains. The process is somewhat similar. Garbage in, garbage out.
Example: Adele loved the fiber arts. She tackled crochet, knitting, tatting, rug making and lace making using all sorts of materials. A friend encouraged her to establish a website and open a tiny studio open to the public. Adele soon discovered that she could do only so much with her own hands--but she did not want to have employees. She did not want to price her output too high because she felt sorry for many buyers of limited means. To her dismay, Adele quickly found that her income did not support her expenses. Her solution was to turn her small business back into a hobby which she pursued at home.
Example: Marge also loved fiber arts. She wanted to establish a small business, so she did several business plans. She discovered a good market for handmade rugs using her original designs. So she took the plunge with a website and a working studio. Today, Marge has two employees making rugs using her own designs and under her close supervision. To price her rugs, Marge sets prices at a level that defines her target market. She is not looking to sell a rug to every homeowner. Rather, she sets prices at levels that attract clients who appreciate the uniqueness, the design, the custom colors--and they have the money to indulge these preferences.
Business works by the numbers. Those bottom line numbers tell us with a degree of certainty whether or not the business is viable.
When a business owner mixes feelings with business, the business heads down a slippery slope. When emotion crowds out the numbers, bankruptcy looms.
Bad bottom line numbers weed out business owners who fly with feelings and emotion. It rewards those who do the logical, numbers-based thinking.
This does not mean that business is amoral. The current loud mouths who bemoan greed don't know how to put greed to work in a moral way. A moral business tames greed and turns it into a good social mechanism.
to help you better manage your small business.
Our brains are like giant computers. But there is a big difference.
Computers are built from little components that give them their power. They are organized in such a way to give us pathways to solve all sorts of problems.
Brains also consist of little pieces. Brains have great potential. But until the brain is organized, it flails about from one perception to the next, absorbing everything it encounters.
Brains get organized by moms and dads, by language and culture, by education and experience, and by trial and error.
People program computers, and people program brains. The process is somewhat similar. Garbage in, garbage out.
Example: Adele loved the fiber arts. She tackled crochet, knitting, tatting, rug making and lace making using all sorts of materials. A friend encouraged her to establish a website and open a tiny studio open to the public. Adele soon discovered that she could do only so much with her own hands--but she did not want to have employees. She did not want to price her output too high because she felt sorry for many buyers of limited means. To her dismay, Adele quickly found that her income did not support her expenses. Her solution was to turn her small business back into a hobby which she pursued at home.
Example: Marge also loved fiber arts. She wanted to establish a small business, so she did several business plans. She discovered a good market for handmade rugs using her original designs. So she took the plunge with a website and a working studio. Today, Marge has two employees making rugs using her own designs and under her close supervision. To price her rugs, Marge sets prices at a level that defines her target market. She is not looking to sell a rug to every homeowner. Rather, she sets prices at levels that attract clients who appreciate the uniqueness, the design, the custom colors--and they have the money to indulge these preferences.
Business works by the numbers. Those bottom line numbers tell us with a degree of certainty whether or not the business is viable.
When a business owner mixes feelings with business, the business heads down a slippery slope. When emotion crowds out the numbers, bankruptcy looms.
Bad bottom line numbers weed out business owners who fly with feelings and emotion. It rewards those who do the logical, numbers-based thinking.
This does not mean that business is amoral. The current loud mouths who bemoan greed don't know how to put greed to work in a moral way. A moral business tames greed and turns it into a good social mechanism.
Monday, June 29, 2015
Business handwriting
Free daily tips, information, advice and ideas
to help you better manage your small business.
There is a move afoot in education to eliminate the teaching of cursive writing, or handwriting. Instead, kids learn capital letters--or they simply text everything.
This is depersonalization of the language. It is rampant today. And it is bad for business.
Example: Ella runs a bakery, and some of her popular products are cakes. People order cakes to be decorated for birthdays, anniversaries, retirements and other special occasions. When Ella needed to hire another employee, she found that many of the applicants did not know handwriting--a major requirement for decorating and putting the finishing touches on cakes.
Example: Alice runs an embroidery service. People want their names embroidered on uniforms and other items. Many prefer the writing to appear as if handwritten. While the computers Alice uses does most of the work, even with fonts that imitate handwriting, her employees must know how to proofread the finished product. Many don't.
Example: Bob is an expert auto technician with 40 years experience. He and his people tackle all sorts of mechanical and electrical repairs. The shop has the latest computerized equipment. Today, diagnosis of problems would be impossible without taking a reading from the auto's computers. When the repair job is done, Bob provides the client with a computerized summary of what was done. Nevertheless, Bob always makes extensive handwritten notes "on the run" as each auto moves through the shop. These handwritten notes are kept with the files so that they can be consulted later. Bob has found it invaluable.
If all you use to make notes is some fancy computerized device, what will you do when the power/battery goes down? How will you understand handwritten instructions from a client?
Handwriting is back-up. People who know how to quickly make handwritten notes will have a big advantage in a crisis.
If schools won't teach your children how to do handwriting, do it yourself. One day, they will thank you.
to help you better manage your small business.
There is a move afoot in education to eliminate the teaching of cursive writing, or handwriting. Instead, kids learn capital letters--or they simply text everything.
This is depersonalization of the language. It is rampant today. And it is bad for business.
Example: Ella runs a bakery, and some of her popular products are cakes. People order cakes to be decorated for birthdays, anniversaries, retirements and other special occasions. When Ella needed to hire another employee, she found that many of the applicants did not know handwriting--a major requirement for decorating and putting the finishing touches on cakes.
Example: Alice runs an embroidery service. People want their names embroidered on uniforms and other items. Many prefer the writing to appear as if handwritten. While the computers Alice uses does most of the work, even with fonts that imitate handwriting, her employees must know how to proofread the finished product. Many don't.
Example: Bob is an expert auto technician with 40 years experience. He and his people tackle all sorts of mechanical and electrical repairs. The shop has the latest computerized equipment. Today, diagnosis of problems would be impossible without taking a reading from the auto's computers. When the repair job is done, Bob provides the client with a computerized summary of what was done. Nevertheless, Bob always makes extensive handwritten notes "on the run" as each auto moves through the shop. These handwritten notes are kept with the files so that they can be consulted later. Bob has found it invaluable.
If all you use to make notes is some fancy computerized device, what will you do when the power/battery goes down? How will you understand handwritten instructions from a client?
Handwriting is back-up. People who know how to quickly make handwritten notes will have a big advantage in a crisis.
If schools won't teach your children how to do handwriting, do it yourself. One day, they will thank you.
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