America's Best Companies

What's the Difference Between a Pyramid Scheme and a Ponzi Scheme?

al@gowithabc.com (Al Lifchultz) — Tue, 06 Mar 2012 07:42:20 GMT

The difference between pyramid schemes and Ponzi schemes is in the methodology. Pyramid schemes rely on multiple levels of investors, each promising exorbitant returns to the succeeding level, whereas Ponzi schemes feature a central figure who promises exorbitant returns to all investors.

Knowing risk as they do, those at BusinessInsurance.org want to help you recognize and steer clear of these dangerous investments:

Pyramid Schemes

Pyramid schemes are organized into investor levels. At each level, investors are responsible for recruiting new investors and obtaining money from them. It begins when one person asks a small group of people for a sum of money in exchange for a promise of large returns. Each of those investors must then approach another small group of investors and make the same promises. After recruiting new investors, existing investors pay a portion of the new investments to the level above them and keep the rest. If an investor does not recruit additional investors, they receive no return on their original investment, so the financial incentive lies in recruiting new investors.

Pyramid schemes collapse when the bottom level cannot recruit enough willing investors to sustain the flow of money to the top of the pyramid.

Ponzi Schemes

Ponzi schemes are similar, except that participants don't have to recruit others. Rather, they invest passively in exchange for a promised return on their investment. Ponzi schemes are named after Charles Ponzi, who infamously defrauded willing investors out of $6 million by exploiting international price differences in a postal product. He promised investors he could help them make money the same way. After doling out some of the initial returns, Ponzi began embezzling the rest and eventually walked off with the money. He was caught a short time later, and because the fraud was such a huge sum of money for the time, his special brand of scheme soon bore his name.

Ponzi schemes collapse when investors panic and attempt to reclaim their money. Though with the false promise of high returns from novel investments, Ponzi schemes often attract more seasoned investors.

Want to learn more about the schemes and how to spot them? Read the Federal Trade Commission Attorney General Debra Valentine's speech, Pyramid Schemes.

Small Biz Tip: Rebranding: Get Involved

cheryl@gowithabc.com (Cheryl Sowa) — Fri, 09 Apr 2010 10:26:22 GMT

Tips from April 9, 2010

The Small Business tips today discuss how to get involved to promote your rebranding campaign.

Local events are a great place to showcase your rebranded company. Chamber of Commerce meetings, small business associations, and town functions are great ways to get involved and display your rebranding campaign.
Host a "preview" party for your loyal customers. Allow them to check out your rebranded image and store before anyone else with the VIP treatment!
Sponsor a local sports organization. Many youth leagues are always looking for team sponsors. It's a great way to get your name out there, and to help the little ones in your community!
Be prepared. Have your elevator pitch, explanation for the rebrand, and some samples ready for anyone who asks. Be proud!

Daily Overview: Come off of your rebranding strategy in a BIG way. Host an event. Get physically involved and get noticed!

Small Biz Tip: Rebranding: Social Media

cheryl@gowithabc.com (Cheryl Sowa) — Fri, 09 Apr 2010 10:01:26 GMT

Tips from April 8, 2010

The Small Business tips today discuss rebranding strategies using social media.

Change your tone on all social media accounts (Facebook, Twitter, LinkedIn, YouTube, etc). Be upbeat, excited, and open to discussing your rebranding and company.
Change your look. Try incorporating your new rebranded logo and design to acknowledge you're in a transition period. Be consistent on all social media accounts.
Twitter is a great social media resource for rebranding efforts. It allows for you and your followers to interact publicly to answer any and all questions with @ replies.
Include pictures! Twitpic, yfrog, and Facebook Picture Uploader allow pictures to be instantly uploaded to those who follow you. Take advantage of this! Remember: Pictures speak louder than words!

Daily Overview: Communicate, update, and inform your followers in real time via social media to discuss your rebranding.

Small Biz Tip: Rebranding: Blog

cheryl@gowithabc.com (Cheryl Sowa) — Wed, 07 Apr 2010 16:58:45 GMT

Tips from April 7, 2010

The Small Business tips today entail how to discuss rebranding on your business blog.

Track your progress on your business blog. Go over each important step - what you're doing and why. This will keep people involved and informed.
Give detailed explanations. For example, if you're redesigning your logo, explain why. What is different? Is there a new meaning? Why are you changing it? What does it mean to you?
While it is important to update and educate your customers and consumers about the rebranding, keep in mind your competitors are also following your every move. Don't divulge important information or strategies you do not want them to know.
Encourage two way communication. Pose questions on your blog, and ask them to comment with responses. Additionally, dedicate a blog post to strictly asking if your followers have any questions about the rebranding.

Daily Overview: Your business blog will help you get the word out about your business, as well as keep those who matter in the loop.

Small Biz Tip: Rebranding: Communication

cheryl@gowithabc.com (Cheryl Sowa) — Wed, 07 Apr 2010 08:33:23 GMT

Tips from April 6, 2010

The Small Business tips today discuss communicating while rebranding your business.

Many people will have questions about your rebranding. Answer questions that are posted on your website, in comments, on social media, or any other communication channel publicly. This way, others who might have the same question will be able to see your answer. Explain the change, and what you hope to accomplish in each answer.
Be authentic. When you're communicating to others outside your company make sure you are accurate in explaining what exactly is going on. Tell the truth. Be real. Any discrepancies will look poorly upon your company.
If you announce something, make sure you follow through. There is nothing worse than consumers, customers, and competitors with high expectations and be let down.
Keep communication lines open and available. Your website is a great communication tool, as well as your social media accounts (more later this week). This allows people to contact you or at least have the information to contact you whenever they would like.

Daily Overview: Open communication lines allow for the rebranding news to get out to the public, as well as answer any questions that others may have.

Small Biz Tip: Rebranding: Strategy

cheryl@gowithabc.com (Cheryl Sowa) — Mon, 05 Apr 2010 16:33:29 GMT

Tips from April 5, 2010

The Small Business tips today discuss rebranding strategies.

Create a strategy first. Going into a rebranding without having a set goal or plan of attack will not only look sloppy, but it can damage your brand, reputation, and business.
Keep your employees on the same page. Inform everyone at your business about the new rebranding campaign. This way, all employees can answer any questions that may come up about your new campaign.
Make sure key players agree on the rebranding plan. A plan which is only agreed upon by a few of the upper level management will not work in the long run. Keep making changes until you find a plan that everyone agrees on.
Build a timeline. It takes time to rebrand: marketing collateral, logo, social media (look for tips this week!), getting the word out, and any other odds and ends to take care of.

Daily Overview: Rebranding without a plan is a bad idea. Take the time to think ahead to organize, then go ahead and implement.

The Importance of Web Presence for Small Businesses

cheryl@gowithabc.com (Cheryl Sowa) — Thu, 01 Apr 2010 15:52:10 GMT

Unless you're living under a rock, you know that the internet is a very, very powerful tool for small businesses. If your business doesn't have a webpage on the internet already, you're way past overdue to get one. The majority of Americans use the internet daily, and consumers expect businesses to be familiar and utilize the web as well. The internet gives your consumers a window to your business and a way to reach you 24/7/365.

Additionally, local search is becoming an important tool for businesses to be found on the internet. In fact, a mid-March 2010 survey by BIA/Kelsey and ConStat shows just how important the internet is for small business. "The most common online tool used for local research was search. Nearly one-half of respondents used Internet yellow pages and 42% checked comparison-shopping sites before heading to local businesses." The survey also showed 90% of consumers searching online first to buy locally. Building a presence on the internet is imperative for small businesses. To expand your presence on the internet, look into these different strategies.

Get Your Business Listed
Local search (as indicated in the survey above) is rapidly becoming an important aspect in small business web presence. Not only is it important to have a strong website, but also to claim your business online to be picked up by search engines. Your business listing is what will come up when consumers search for business on big search engines, such as Google, Bing, etc. Claiming your business will help your business climb in keyword search results on the big search engines. To get found online and claim your business today visit EZlocal.com.

Business Blog
Small businesses who blog will expand their web presence by simply communicating with their customers and the world wide web. The connection is important to build relationships and act as not only business information for a consumer, but also to act as a resource for industry news and trends. As someone with knowledge, it is your job to share it with your consumers and others in your industry.

Furthermore, including a blog on your small business website will assist in long-term keyword recognition. Using important keywords helps your business get found online in search engines, and also informs the reader on the topic of the blog. Beware of meta tag descriptions and keywords - you do not want to be recognized as spam. Read more about blogs for your small business here.

Utilize Social Media
Unsure how to use social media for your small business? A few ideas include starting a marketing campaign, offering coupons for Twitter followers, or posting a special event on Facebook Fan Page. The internet allows small businesses to interact, plan and communicate online. To keep up with social media, it is important to concentrate on two to three sites and create a strong presence. The top sites for businesses to engage in social media are Facebook, Twitter, and LinkedIn. A simple way to find out what sites you should use for your business is by simply asking your customers. They are, after all, the ones you want to engage with!

Additionally, incorporate your social media into your website. Include links to your Facebook Fan page, Twitter account, or LinkedIn group for easy access for your web visitors to engage with your business via social media. If you have company newsletters, include your social media links in there as well. Connecting is just a click away!

Measure Your Progress
Measuring your business' presence online is important to see what traffic you are driving to your site. Use Alexa rankings to gauge how your website stands up to the rest on the internet. Another way to measure how people are visiting and interacting with your business is measuring the number of comments your blog has, or the number of followers or fans in your social media campaigns. Both statistics are important. Tracking your website statistics with Alexa or Google Analytics helps to determine where the majority of your traffic is coming from, bounce rates, and click-through rates.

Small businesses need web presence-plain and simple. A lack of internet presence will no doubt keep potential consumers from finding your business. What other tips do you have for putting your business on the internet?

Small Business Success Story: Yevgeniya Lepskaya School of Music

cheryl@gowithabc.com (Cheryl Sowa) — Wed, 24 Mar 2010 16:15:13 GMT

Can you tell me more about yourself?
I was born in Kiev, Ukraine and immigrated to the United States when I was 19 years old. I received a full scholarship to Roosevelt University Musical College in Chicago. I graduated in three years, with honors, from the Chicago Musical college with a Bachelors degree in Piano Performance and Pedagogy. I then attended Northern Illinois University for graduate school on a full scholarship, and received my Master's degree in Piano Performance and Pedagogy in 1999.

What made you decide to start your business?
I have been teaching music all my life. While I was a student at Roosevelt, I began teaching a few people on the side. Word began to spread of my teachings, and the number of students I had kept growing. Six years ago, I got my own space and started my teaching business.

What was the biggest challenge you had to overcome?
The biggest challenge that I had to overcome was coming to the United States. I did have full scholarships to Roosevelt, but I only had $200 in my pocket. It was very hard to survive on little money, let alone in a brand new country. It was a struggle to survive, but I overcame the challenges with the help of teaching.

What is your favorite aspect of owning your own business?
I view my business as an extension of myself. I love what I do. I've been involved with music my entire life, and teaching for many, many years. Music is what I know, and what I love. It is about the art; it is beautiful and a special gift. The best part, for me, is working with the children. The children are like my extended family - it warms my heart to know that they appreciate and care about me as much as I care about them. It gives me a great feeling to know that I have great relationships with the children.

What motivates you?
My motivation is the ability to perform for others. I still play the piano very often and perform yearly in Chicago. I am motivated to the best.

What advertising and marketing strategies have worked for your business?
I have tried participating in variety shows in my area, placing ads in the Yellow Pages, posting signs in various buildings in the area, and started a direct mailing campaign. The most successful strategy that has worked for me is word of mouth. Many of my students are referrals from current students. My business has recently been listed on EZlocal and I am excited to be found on the local search engine to bring in new business.

What has been your biggest success so far?
My biggest success so far is that I've never had any other job besides teaching and playing piano to support myself and my career. Most artists, whether its fine arts or creative arts, are forced to have other jobs to support their work. I have always been able to support myself, make a living, and create a life for myself solely with my art.

Where do you see your business in 5 years?
I would like to see my student body grow from 60 students to 100 students.

What is most important thing to remember when starting your own small business?
You have to do it for the right reasons - you can't start your own business to get rich quickly or to buy things. You should start a business if you have the skills, a unique idea, and a way to attract customers. It is important to be smart about money, space, rent, loans, and other financial burdens, and not start a business because you think you can get rich quick. Bottom line is: you need to do it for the right reasons.

If you could give aspiring entrepreneurs any advice, what would it be?
Do the math before you begin. Don't keep your heads in the clouds.

BUSINESS NAME: Yevgeniya Lepskaya School of Music
OWNER: Yevgeniya Lepskaya
LOCATION: Park Ridge, IL
WEBSITE: http://www.artofmusicschool.us/

Can a Small Business Owner be TOO Much of a Leader?

cheryl@gowithabc.com (Cheryl Sowa) — Wed, 24 Mar 2010 10:13:59 GMT

Many small business owners treat their business like their own child, and they definitely should. New small businesses need caring, nurturing, constant supervision, and could potentially cause an all-nighter. As the business continues to grow and employees are hired, the small business owner solidifies his or her role as leader of the business. As time goes on, it is important for the small business owner to become a trustworthy leader and relinquish some control over the business to its employees. But, some small business owners never reach that level of trust, and hinder their leadership abilities. Here are a few scenarios where small business owners are lacking in leadership.

You Have Anxiety About Giving Others Control
Occasionally, small business owners turn into control freaks: watching over employees shoulders, refusing to leave work before anyone else, meddling in others' work, and just being overbearing. Giving up the reigns is a difficult task, especially when you're the boss. Unfortunately, you can't do everything. Repeat - you cannot do everything! Your business will only be successful if you learn to trust others and create a system with your employees to delegate work fairly and appropriately. When employees feel trusted, they feel empowered and important. Employees are more likely to feel encouraged to work hard when they know their boss trusts them with work and gives them their baby to hold.

Your Business Does Not Have an Employee Manual
The first step to relinquishing control is to create an employee manual. Creating a manual will outline what you need your employees to do to conduct business in a productive and efficient manner. Additionally, as the author of the manual, small business owners can instruct employees on what to do based on how they want their business to be run. For example, the manual could include different closing procedures when the business closes shop in case the owner has to leave early.

You Delegate a Majority of the Work...to Yourself
Yes, your business is like your baby. Yes, you want to make sure that everything is done. If you do not delegate the work to your employees, you will lose productivity, money, and respect from your employees. Trust your employees that you hire and provide them with the manual. If trained properly, your employees can do the work exactly how you would. This way, you are trusting the employees with your business, and allowing them to actually do their job.

You Haven't Taken a Vacation Since Opening Your Business
Owning a small business is very stressful. Keeping track of finances, profits, your employees, and basically everything, falls on the shoulders of the owner. If business owners plan ahead and trust their employees, taking a vacation should not be a problem. Spending time away from the business and with your family is not only important for keeping your personal life in check, but also to give your business room to function without you.

The Solution

Too much of a leader? The solution is simple: back down and let go. Small business owners who put too much on their plate and choose not to back down will find themselves overworked, miserable, stressed, and fit the bill to be labeled a control freak. To start, you must realize that the business will never take off without delegating the work. Being a leader involves being in charge of your employees and their work. Take control of your business by releasing control. Next, avoid the urge to micromanage. It might be hard at first, but using an employee manual will give your employees direction and guidance.

A leader is someone that many people look up to, respect, and look to for guidance as a role model. A small business owner must be a leader for its employees. Being too much of a leader and too obsessive is a problem many business owners face. Realize the problem, and relinquish control to gain control of your business.

Want to Run Your Business Blog Into the Ground?

cheryl@gowithabc.com (Cheryl Sowa) — Mon, 22 Mar 2010 09:41:40 GMT

Business blogs are great. Not only do consumers get information on company's marketing campaigns, successes, and industry news, but also insight on the company itself. Blogs used correctly will draw people in, and create a great business-customer relationship. Those blogs which fail at creating this relationship and are used incorrectly could prove detrimental to your business. There are a few simple things that your business blog can do stop your blog up for business failure. Do you want to run your business into the ground?

Don't Include RSS Feeds

"Who cares about making it convenient for those who are following you? If they want to find your blog, they will. What's the use for an RSS feed?"

RSS feeds are a great way for your loyal readers to receive updates immediately each time your blog is updated. These people could include employees, customers, potential customers, competitors, or random people on the internet looking to gain information and insight to your company. Whoever is following your blog is following for a reason. Make it easy for them to keep updated!

Missing or Out of Date Contact Information

"Well, I have my email address listed on the contact page, so I figured if anyone wants to contact me about my blog, they can from there."

Contact information on your blog after each post is crucial. Have a small "contact" button with an automatic link to email to contact the author immediately. Also, keep your business contact information (address, phone number, email) at the bottom of every single page of your business website. That way, the information anyone needs to contact you is available at all times.

Avoid Reaching Out to Readers

"I write the blog, so I'm going to write about what I want to. My readers should have no say, since I'm the one writing!"

Reaching out to your readers via posting questions or comments on your blog is important. You need to have the attention of your readers, and a great way to do that is to interact with them. Do they want more information on any topics? Have industry questions? Need advice? Dedicate a blog post to your readers and ask them what they want from you. Encourage comments from your readers. Reach out and help your readers. In return, they will help you!

Get Very Creative with Keywords

"I want my blog to be found online, so I can use any keywords I want, right? Business, economy, other big buzz words will get my blog found. I can even include popular words to get my blog found in meta tags, like Lady Gaga!"

Keywords are what gets your business found online in search engines AND give the reader an idea of what the article will be about. Keywords should be in all important areas linking your blog to the world wide web: domain name, title, headings and tags. Meta tag description and keywords should also not be forgotten. They MUST be relevant to the information in your blog. Spamming your tags and keywords with buzz words will cause the opposite reaction of what was intended. Instead of search engines appearing higher in search results, the search engines will recognize the spam and your article will appear lower, or not even included in the results. Is it worth it?

Every Post is Written by "Admin"

"The blog is the blog by OUR business, and multiple people contribute. Why put a personalized face to the name?"

Every blog post has an author, and each author has different writing styles, preferences, and techniques. Whether it is the same author every time, or multiple employees contribute, you need to distinguish your authors for each post. Create different settings so each author can post their own blog. Include a small "about the author," as well as a picture and a link to contact the author directly. Putting a name and face behind each post gives readers a personalized feel for the blog.

No Comment

"I appreciate feedback, but I don't want negative comments, just positive ones. To avoid this, I'm leaving off the comment box. I don't care what people say, anyways."

As stated before, interacting with your readers is crucial to finding out what they want to know, what they like, and what they don't like. Face it - you're NOT perfect; no one is. Any comments, positive or negative, generates a follow up conversation and additional interaction with your readers. Any comment deserves a short, "thank you," and a follow up statement. Think of negative comments as constructive criticism. Address them appropriately, and do not attack the commenter.

A business blog is an exceptional tool that must be used properly and effectively. Do you know of any ways to run your business blog into the ground?

Small Biz Tip: Blogs: Guest Bloggers

cheryl@gowithabc.com (Cheryl Sowa) — Fri, 19 Mar 2010 15:54:34 GMT

Tips from March 19, 2010

The Small Business tips today discuss having a guest blogger contribute to your blog.

Do your research. Find out who has good information to share and who you can trust. Reach out to colleagues, industry experts, or even other employees. Send emails, tweet, or pick up the phone and call.
Give guidelines, but allow creative freedom. Give a word range that guest bloggers should shoot for. If you would like your guest to talk about a certain topic, tell them. Be as specific as you need to be to generate the post you want, but don't be too picky. Give them freedom.
Prep your guest blogger. Give them a rundown of your blog, including the style, typical length, and readership. Additionally, announce your guest on blog a few posts in advance. Spread the word!
After the guest blog is published, thank your contributor. Gauge the results and your reader response. Suggest your guest blogger posts a link on their blog to their post on your site.

Daily Overview: Guest bloggers give new information, a fresh face, and generate interest and readership.

Small Biz Tip: Blogs: Search Engine Optimization (SEO)

cheryl@gowithabc.com (Cheryl Sowa) — Thu, 18 Mar 2010 16:43:22 GMT

Tips from March 18, 2010

The Small Business tips today discuss SEO (search engine optimization) for blogs.

Keep your content fresh. The easiest tip for SEO is to have great content that will get you found without much promoting. The quality of your work and original content will get you found on the top search engines.
Keywords - Important words that people will search for search engines, such as Google, Yahoo!, or Bing, are important when creating your blog post. Keywords should be in your title, subtitle, URL, and tags.
Posting links to your blog in outside sources provides links back to your website. Unfortunately, this could also be labeled as spam if done incorrectly. Keep posting your blogs on comments to other blogs in your industry, or those that you know personally and professionally. Don't get too carried away, you could ruin your reputation.
Social media provides a great way to provide a link for others outside your community, industry, or readership to read your blog. Twitter is a way to direct people back to you. Provide links to your content, and your name and brand will act as a platform.

Daily Overview: SEO helps your blog get found on the internet and moves your ranking up. Keep these tips in mind to build your blog exposure through SEO.

Small Biz Tip: Blogs: Marketing Your Business

cheryl@gowithabc.com (Cheryl Sowa) — Wed, 17 Mar 2010 16:53:00 GMT

Tips from March 17, 2010

The Small Business tips today discuss marketing your business with your blog.

Listen - Do you know what is going on in your industry? Your blogosphere? The world today? You need to listen to know what others are talking about, what people want to know, and what people need to know. Listen first, then blog.
Personal & Professional - Create a relationship with clients, or potential clients, in the blogosphere. Include others you work with who contribute to your blog. Create a short bio on each employee, and let them interact as well.
Don't Be Too Salesy! It is okay to sell to your readers, but only after you create a brand and a relationship with your readers. Avoid being too salesy, instead, blog about what is important to your industry, followers, and clients, and add a short product placement at the end.
Get into a rhythm of posting to your blog. Post a few times every week, about 2-3 times is a good start for any small business. Once you have a good following, start posting 3-5 days per week. Keep the content fresh and innovative.

Daily Overview: Using your blog can be a huge asset to your marketing campaigns. Be relevant, honest, personable, and professional.

Small Biz Tip: Blogs: Drive Traffic to Your Blog

cheryl@gowithabc.com (Cheryl Sowa) — Tue, 16 Mar 2010 16:52:41 GMT

The Small Business tips today discuss how to drive traffic to your blog using Twitter.

Complete Your Profile - Fill out your biography, link to your blog, and any other information that others reading your Twitter OR blog could find you at. See the two as compliments of each other.
Branding - Utilize the picture and background features. Create a brand for yourself - think of it as an Internet billboard. Create a theme that is consistent between your blog and your Twitter account.
Links & Hashtags - Post bit.ly links on your Twitter account each time you create a post on your blog. This can be synched, but for beginners, it is a simple step of copying and pasting the link from your blog to bit.ly, then sending a tweet to your followers. Additionally, use hashtags (#) to brand your business and group your topics with other similar topics on Twitter.
Be Visible! If you have a Twitter account to promote your blog, be active. Talk to your followers. Interact WITH them, not AT them.

Daily Overview: Blogging is a powerful tool for any business, and using Twitter is a great way to promote your blog.

Small Biz Tip: Blogs: Types of Blogs to Get Comments

cheryl@gowithabc.com (Cheryl Sowa) — Tue, 16 Mar 2010 11:04:46 GMT

Tips from March 15, 2010

The Small Business tips today discuss different types of blog posts to attract visitors and receive comments.

Competitions - Read: FREE GIVEAWAYS. Encourage people to comment on your blog to interact, share ideas, or discuss your post, and offer a giveaway for the most insightful comment.
Interesting/Quirky Information - Share a unique story or interesting link on your blog, and discuss. Ask your readers if they've heard of your information/link. Encourage a discussion.
Debate - Pose two debating topics or opinions to your readers, and let the comments fly. State the facts for each, and again, ask your readers what they think.
Lists & Resources - If you are posting a good amount of information with links and resources for your followers, your readers will comment with compliments, or with their own suggestions. For those resources you include, email them to inform them you are including them on your blog. They will most likely leave a thank you comment.

Daily Overview: Comments will appear on your blog when you engage your readers. Post useful information. Pose questions. Interact!

Small Biz Tip: Taxes: Employee Taxes

cheryl@gowithabc.com (Cheryl Sowa) — Fri, 12 Mar 2010 14:02:28 GMT

Tips from March 12, 2010

The Small Business tips today discuss employee taxes.

If you have employees for your business, a variety of taxes will be withheld from their income. Remind your employees of the taxes upon hiring.
Some taxes withheld from employees' pay are: Social Security, FICA, Medicare, and federal and state income taxes.
Employees aren't the only ones who have taxes taken out. Businesses and employers must match the FICA and Medicare taxes and pay them along with employees.
Don't forget those who are out of work! Businesses are required to pay federal and state unemployment taxes.

Daily Overview: Taxes withheld from employers and employee salaries go towards different organizations. Keep this in mind, and look for returns when you file taxes.

Top 10 Tax Tips I Didn't Know

cheryl@gowithabc.com (Cheryl Sowa) — Fri, 12 Mar 2010 13:58:03 GMT

Tax time for small businesses is typically very stressful. With the April 15 deadline approaching, now is the time (if you haven't already) to get started on preparing your taxes. While researching for this week's tax tips and blog, I came across many tax tips that I didn't know about. Check out my Top 10 Tax Tips!

File Your Tax Return for Free - The IRS Free File program provides free federal income tax preparation and electronic filing for eligible taxpayers through a partnership between the IRS and the Free File Alliance LLC, a group of private sector tax software companies. Free tax preparation and filing via online software is available to anyone with a 2009 Adjusted Gross Income of $57,000 or less. If that’s you, head to the IRS website and choose from a list of approved tax preparers, and get started. If you aren’t sure which preparer to use, answer a few quick questions and the Free File program will suggest some matching companies. (read more at Precept Law Group)

Go Green - Federal and state governments are throwing money at small businesses in the form of tax incentives for environmentally friendly initiatives--from solar panels to energy-efficient washers and dryers. In Georgia, for example, a new Clean Energy Property Tax Credit program will dole out $2.5 million a year over the next five years, says Peter Stathopolous, a director at accounting firm Bennett Thrasher PC in Atlanta. In some states, small-business owners can use green credits to offset both corporate and personal tax bills. For a comprehensive list of incentives, check out the Database for State Incentives for Renewables and Efficiency. (via Forbes.com)

Employ Your Children - Doing business with family has its challenges, but at least it comes with a tax benefit or two. Putting Junior on the payroll means he's qualified to begin contributing to a Roth IRA, a smart way for him to start saving for retirement. Another perk: Assuming your boy stays in the business, by putting him on the payroll you are essentially shifting a portion of the company's income into a lower tax bracket--his. You also receive a larger tax deduction for a dependent earning a wage than one who doesn't, notes Richard Dauman, a principle at Bessemer Trust. (via Forbes.com)

Deduct Your Business Startup Costs - Every new business incurs start-up costs for a variety of things such as market research, training, and fees paid to consultants, accountants, and attorneys. The good news is that most of those costs are deductible, but the bad news is that the rules for deductibility and timing are not as clear as those for operational expenses. Section 195 of the Internal Revenue Code is the main provision related to the deductibility of start-up costs. According to this section, deductible start-up costs are those that would be deductible if they were incurred by an existing business. (continue reading at The Enrepreneurial Advocate)

Depreciation is Your Friend - "Be sure to maximize the depreciation deductions available by using the Section 179 immediate deduction of certain fixed assets and the 50 percent bonus depreciation for purchasing new assets," said Claude A. Titche III, CPA, Tax Partner at Beene Garter in Grand Rapids, Mich. "Quicker depreciation expenses save tax dollars for other important purposes. Remember that you only get to deduct the cost once. A current deduction is better than a deferred deduction." (via Moore Stephens North America Inc.)

IRS Resource for Learning About Business Taxes - Bootstrapping entrepreneurs need as many low to no-cost resources as they can get their hands on to start and run their businesses. A good, free resource for start-up tax information to check out is the IRS Virtual Workshop. The surprisingly modern interactive site is designed to help new businesses owners understand federal tax obligations and procedures. Users can choose from nine different lessons. (continue reading at Precept Law Group)

Watch Out for Surprises From Out of State - "Small business owners need to review their state filing requirements for income tax, personal property or sales and use tax," advised Joel Rothenberg, CPA, Tax Partner at DiCicco Gulman and Co. in Boston. "The states are very aggressive in enforcing their laws and small business owners need not only be aware of the rules in their home state but determine whether their activities in other states trip a filing requirement." (via Moore Stephens North America Inc.)

Check, Check, and Re-Check - Re-examine every purchase, every expense you made in 2009. Make sure you've taken all the business tax deductions you are entitled to: expenses you didn’t record in your ledgers, expenses you didn’t think were deductible, “personal” expenses that qualify as business expenses. Neither the IRS nor your accountant is going to know about a deduction you forgot to take. It's entirely up to you. (via PowerHomeBiz.com)

Take Advantage of the New Rules for Business Losses - "Small business owners need to plan for their net operating losses (NOLs). An election must be made at the time the 2009 tax return is filed to either carryback or carryforward the current year NOL. The taxpayer needs to look at the tax rates and income levels in the prior years. If they were not substantial and income is expected to increase in the future, it may be better to carry the loss forward," said Stacey J. Dell, CPA, Tax Partner at Mohler, Nixon & Williams in Campbell, Calif. (via Moore Stephens North America Inc.)

Report Large Cash Payments - Listen up, members of the under-the-table crowd: Cash transactions greater than $10,000 must be reported to the IRS, via Form 8300, say AGH's Blue. That mandate goes for payments with cashier's checks, traveler's checks and money orders as well. Part of the information you'll need to complete a Form 8300 is the social security number of the buyer. (Beware buyers that give you push back--they may not want to be on the IRS' radar screen.) One weird caveat: While selling personal real estate doesn't require a Form 8300 filing, selling a mobile home does. (via Forbes.com)

Finally, one last big THANKS to Kyle Durand, an entrepreneurial adviser and legal expert on all things small business. Kyle has been the source this week for our tips, and has given us great advice to pass along to you. His business, Precept Law, specializes in helping small businesses legally. Find some great tax tips on the Precept Law blog . Visit Kyle Durand at www.entrepreneurialadvocate.com and www.preceptlaw.com , or join his conversation on Twitter at http://twitter.com/kpdurand .

Small Biz Tip: Taxes: Audits

cheryl@gowithabc.com (Cheryl Sowa) — Fri, 12 Mar 2010 08:35:41 GMT

Tips from March 11, 2010

The Small Business tips today discuss types of tax audits.

Correspondence Audit: Simple procedure. The IRS requests you to document an item on your return by a specific date. Routine test for compliance.
Field Audit: The dreaded audit. IRS asks for documentation of various items on your return and meet with an IRS agent for thorough review of records. Be prepared to answer questions and have all paperwork needed.
Taxpayer Compliance Measurement Program Audit: Lengthy and detailed. Document and provide proof for every single item in your return. IRS and Congress use this for research and statistics, and are arbitrary regardless of how careful and perfect your tax return is.
Criminal Investigation Audit: Suspicion of tax evasion. The IRS will try to prove you have purposefully not paid your income taxes. If they are successful, you can face large fines and jail time. If you face this type of audit, you should retain qualified legal counsel.

Daily Overview: There are several types of audits, from complex reviews to cover every aspect of your business to simple requests for a survey. Don't panic if you hear you are being audited. Stay calm, find out all the information, and proceed from there.

Small Biz Tip: Taxes: Business Tax Breaks

cheryl@gowithabc.com (Cheryl Sowa) — Wed, 10 Mar 2010 16:37:02 GMT

Tips from March 10, 2010

Are you collecting the maximum tax breaks from the stimulus law passed last year? Here are the 5 best business tax breaks.

Bonus depreciation. Allows a business to deduct 50% of the cost of a new asset in the year it is placed in service.
Section 179 expensing. A small business can elect to expense up to $250k of the cost of qualified assets.
Net operating losses. Under the new law, most businesses can elect to carry back losses for up to 5 years, instead of the usual 2 years.
Discharge of business debt. The stimulus law allows businesses to recognize discharge of indebtedness income over 5 years, rather than all in 2009.
Exclusion of gain on the sale of qualified small business stock. Increased to 75% for any gain from a sale between Feb 09 and Jan 11.

Daily Overview: Keep the 2009 stimulus law in mind when you are calculating your taxes this year.

Big thanks to Kyle Durand for his excellent tax advice this week and help in writing today's tips. Need legal advice? Visit Kyle Durand at www.entrepreneurialadvocate.com and www.preceptlaw.com.

Small Biz Tip: Taxes: Common Errors

cheryl@gowithabc.com (Cheryl Sowa) — Tue, 09 Mar 2010 16:41:32 GMT

Tips from March 9, 2010

With many business tax returns due on April 15th, the Small Business tips today discuss common tax return errors and how to avoid them.

The most common business tax return error is also the easiest to avoid – make sure the return is signed by a company officer.
According to the IRS, the #2 business tax return error is failing to include the correct tax ID number. Is yours correct?
Incorrect sequencing or missing forms are easily preventable return errors. Review the instructions for each return one last time.
Late or inaccurate election to be treated as an S corporation. This is a big one, because an invalid election will mean your corporation will be subject to double-taxation for the year.

Daily Overview: With correct preparation and execution, tax time doesn't have to be stressful. Be prepared, organized, and turn to help if you need it.

Big thanks to Kyle Durand for his excellent tax advice this week and help in writing today's tips. Need legal advice? Visit Kyle Durand at www.entrepreneurialadvocate.com and www.preceptlaw.com.

Small Biz Tip: Taxes: Deductions

cheryl@gowithabc.com (Cheryl Sowa) — Mon, 08 Mar 2010 16:38:54 GMT

Tips from March 8, 2010

The Small Business tips today discuss tax deductions for small businesses.

Business Travel – Deduct your transportation, accommodations, and business-related expenses from your taxes. Combining business and pleasure? Only deduct costs that are business related as long as more than half of your trip is dedicated towards work.
Equipment – Need new machines, equipment, or other necessary supplies to keep your business running? Deduct these necessities from your business taxes.
Rent – Keeping your business under a roof comes at a cost. Deduct your cost for rent to lower your taxable income.
Salaries – What you pay your employees is a necessary expense for your business. Keep records of your employee salaries, and changes throughout the year, and deduct these expenses.

Daily Overview: “Ordinary and necessary” expenses for your business can be deducted from your revenue to reduce your taxable income. Stay organized throughout the year.

Small Biz Tip: People Skills: Conflict Management

cheryl@gowithabc.com (Cheryl Sowa) — Fri, 05 Mar 2010 13:33:15 GMT

Tips from March 5, 2010

The Small Business tips today discuss handling conflict management.

Engage in active listening. There are two sides to every story, and listening to others will help in understanding what the problem is, and open up ways to solve the issue at hand.
Pay attention to others. Conflicts involve more than one party. Take the time to listen to both parties, and try to understand where each is coming from.
Arrange a meeting between the parties involved in the conflict. A mediation session will allow both parties to confront each other in a controlled setting to talk out their problems.
Communicate clearly. A conflict will never be solved without clear, honest, and open communication.

Daily Overview: Be a leader when it comes to conflict management and take control of the situation. You will gain respect.

Small Biz Tip: People Skills: Managing Emotions

cheryl@gowithabc.com (Cheryl Sowa) — Thu, 04 Mar 2010 16:32:29 GMT

Tips from March 4, 2010

The Small Business tips today discuss managing emotions when dealing with other people.

Emotion= Energy in MOTION. You are expressing outwardly what you are feeling. Once you start, it is hard to stop.
Take a step back from a potentially emotionally charged situation. Gather your thoughts, take a deep breath, and decide how to proceed with the situation.
Keep a journal. Writing down feelings is a good way to let out how you are feeling emotionally, and to gather your thoughts. It also helps to keep your emotions in check.
Talk to those friends and family members that you trust. When you can confide in someone and discuss your true feelings, it helps to express your feelings in a safe way.

Daily Overview: Keep your emotions in check, especially at the workplace. Losing your cool can be detrimental to your image.

The Ten Commandments of People Skills in the Workplace

cheryl@gowithabc.com (Cheryl Sowa) — Thu, 04 Mar 2010 16:19:46 GMT

We use "people skills" each day during every interaction with others. Interactions in the workplace generally have a professional manner, and are typically analyzed and scrutinized. Look no further if you desire to boost your personal skills, be confident in the office, connect with others to establish rapport, and understand your reasoning for miscommunication. Follow these Ten Commandments for People Skills in the Workplace.

1. Thou Shall Not Complain
Don't complain! The workplace will be a stressful environment at times. Complaining at work takes away from productivity and invites negativity to take over. At least half of the people you complain to at work will not care, and some could even think that you got what you had coming. If you're frustrated with something while at work, save it for personal time.

2. Thou Shall Smile
Smile and say cheese! Smiling is part of the foundation for outstanding people skills. It shows the world that you are friendly and approachable. Additionally, a little known trick is to smile when you are talking on the phone, especially when making sales calls. Although the person on the other end cannot see the smile, they can hear it through your tone of voice and how you speak.

3. Thou Shall Actively Listen
Be an active listener! Listening is an important part in conversing with others. While one party speaks, the other is listening. While you may hear what others are saying, it does not mean you are actively listening. Hear words, process the information, and react. This is especially important in the workplace. Receiving orders from the bosses requires active listening. You don't want to miss out on any important information!

4. Thou Shall Show Appreciation for Others
Show that you appreciate others! In the workplace, many people typically handle one project. In this scenario, people skills play a major role when dealing with others to achieve a common goal. When a co-worker gives extra effort in a project or piece of work which you have benefited from, it is respectful and important to let them know you appreciate their work. A simple "Thank You" or "Hey great job there" will work. If you want to go above and beyond, inform your superior of his or her work, or take your co-worker out to lunch.

5. Thou Shall Not Forget Names
Don't forget names! Remembering names is important in all aspects of business. When you are trying to close a sale, using the customer's name is a way to remind them that you are paying attention to detail, and them specifically. Name recognition at work is important to make others feel appreciated, wanted, and involved.

6. Thou Shall Go Above and Beyond
Go above and beyond! Have you made any sacrifices for others (customers, clients, or co-workers) lately? Going the extra mile for others in your workplace will not only get more done, but add extra value for your work. Spending an extra five to ten minutes on a project for some extra added touches, or extending a courtesy phone call will show appreciation and your kindness.

7. Thou Shall Never Gossip
Don't gossip! Gossip is a killer in the workplace. Spreading treacherous rumors about a co-worker in order to get ahead or bond with another is detrimental to all. Gossiping tarnishes others' reputations, and separates the cohesiveness of your workforce. Avoid gossip at all costs. You never know who is listening.

8. Thou Shall Not Interrupt
Don't interrupt! In the workplace, many ideas are shared and exchanged between multiple co-workers. Regardless if you believe an idea is excellent or poor, hold your tongue. Interrupting shows very little respect for others. Be polite and allow others to finish their train of thought before commenting on others. Remember, be helpful and do not attack when providing constructive criticism.

9. Thou Shall Be Confident
Be confident! Confidence is key when it comes to interacting with people, especially in the workplace. Meeting with superiors about a big project will get your nerves going, but it is important to not let it show. Be confident in your actions and around people. Hold your head high and be prepared for any and all situations that could be presented to you. Heed this warning: Too much confidence is frowned upon. Be confident, not cocky.

10. Thou Shall Self Assess Thy People Skills
Always evaluate yourself first! Do you know how strong your people skills are? Or how weak? Self assessments help judge your progress with knowing what you can do and how you can relate with others. Additionally, self assessments gauge your skills at the workplace. If you find yourself struggling with your people skills, reflect on these commandments to find out ways to improve.

Use these guidelines when communicating, relating, and speaking with others in the workplace. Mastering your people skills will help with miscommunication or misunderstandings at the workplace. You'll connect with others, establish rapport, handle confrontation professionally, and learn to give constructive criticism effectively. Do you have any pointers on personal skills?

Small Biz Tip: People Skills: Nonverbal Communication

cheryl@gowithabc.com (Cheryl Sowa) — Wed, 03 Mar 2010 16:36:19 GMT

Tips from March 3, 2010

The Small Business tips today discuss nonverbal communication.

Smile! Showing your pearly whites invites people to your conversation. It also generates a positive vibe and environment to share ideas.
Eye contact is crucial. It shows that you are paying attention to what is going on around you, and that you are listening to the conversation. Eye contact will engage others to interact with you in conversation as well.
Stop fidgeting! Nervous hand gestures, such a foot tapping, folding hands over chest, hair twirling, or just anything awkward will generate negativity and uneasiness in others.
Nod your head while others are talking. They will know you are listening, and acknowledging that you understand what is taking place.

Daily Overview: You can communicate to the world without speaking. Keep these nonverbal cues in check the next time you are speaking.

Small Biz Tip: People Skills: Improvement

cheryl@gowithabc.com (Cheryl Sowa) — Tue, 02 Mar 2010 16:53:14 GMT

Tips from March 2, 2010

The Small Business tips today discuss how to improve people skills.

Pay attention to others. Observe, acknowledge, ask for their opinions and beliefs, and make eye contact.
Everyone loves humor. Be clever, make people smile and laugh. They might not remember the joke, but will remember how you made them feel.
Don't complain. Spare your grievances. Keep your negativity to yourself to avoid boring others and giving yourself a bad reputation.
Be appreciative. Find positives in every situation. Tell people you appreciate them through encouragement, praise, and welcoming gestures.

Daily Overview: Improving your people skills well help in creating and enhancing professional and personal relationships.

Small Biz Tip: People Skills: Assessment

cheryl@gowithabc.com (Cheryl Sowa) — Mon, 01 Mar 2010 16:43:07 GMT

Tips from March 1, 2010

The Small Business tips today discuss how to assess people skills.

Casual conversation helps bring people skills to light. Take note of various actions, reactions, body language, and topics in a natural setting.
Someone's answer to a "what if" question can tell you a lot about them. Ask about real life situations. Remember their reactions and what they'd do in that situation.
Watch someone's interaction with others, and gather a group of observers to watch as well. Ask other observers about the interaction to get other, unbiased opinions of how it went.
Conduct a self assessment. Ask questions on what people think about themselves: strengths, weaknesses, organization, coaching, listening & communication.

Daily Overview: To assess someone's people skills it's best to compare your own observations against what they think of themselves. Communication is a large part of these skills. Take note of these assessments, and work to improve them. Stay tuned tomorrow!

Small Biz Tip: Businesses to Start Now: Arts

cheryl@gowithabc.com (Cheryl Sowa) — Fri, 26 Feb 2010 16:08:59 GMT

Tips from February 26, 2010

The Small Business tips today discuss businesses in the art industry to start NOW!

Photography: Weddings, graduations, senior portraits, head shots, and more. Photographers are always in need. If you have a great camera and a good artistic, eye, start your own photography business.
Interior Design: Use your artistic talents and skill to start an interior design business. Take a few classes if you want to brush up on the latest trends. Start on your own home, then use those pictures as an example for your portfolio.
Home Entertainment Designer: Many homes are starting to install home entertainment systems. Research popular models and designs and start a business of your own.
Take your creative hobbies and turn them into art. Pottery, candles, paintings, and portraits are great pieces of art that have value and can be sold.

Daily Overview: The art industry is always thriving. People are constantly redecorating, looking for change, and a way to represent themselves in their atmosphere.

Know Your Industry

cheryl@gowithabc.com (Cheryl Sowa) — Fri, 26 Feb 2010 09:08:12 GMT

Starting a small business is an exciting time for entrepreneurs, especially if it is in an industry that they love. Taking a hobby or interest and turning it into a business is a common trend for many entrepreneurs. Having the love and dedication that small business owners need to start their business is important, but you can't make common mistakes to keep your business from success. An important step in starting your own business is knowing your industry.

An industry is defined by Princeton as, "the people or companies engaged in a particular kind of commercial enterprise." It is important to know specifics about your industry for many reasons. Knowing your industry will not only help your business succeed, but also give you an edge on your competition, and provide banks and other lenders information that they need to make an educated decision about loans for your business.

So what do you need to know?

Industry Participants
You need to know who is selling in your industry. Most importantly, you need to know the different types of businesses that are selling in your market. For example, make sure you know whether big name chains are infiltrating your industry, or if smaller businesses are dominating.

Competition
You absolutely must know your competitors. They are the individuals who will either make or break your business. You should know your main competitors and a few specifics of their business. This includes: strengths, weaknesses, products, distribution tendencies, finances, reputation, pricing, and more.

Distribution Patterns
Know every step on the path between suppliers and users. Who uses distribution companies? Manufacturers? Retail stores? Door to door? Telemarketing? Analyze the success rate of each of these different strategies. Also, keep in mind that the Internet has changed the way distribution works. You can find out specifics on different companies through various websites. Additionally, Internet sales have skyrocketed in the past years and have created new distribution channels and processing.

Buying Patterns
Buying patterns include factors or key selling points which lead to a consumer's decision to make a purchase. These factors include: service, support, price, sales staff, training, software, delivery, brands, and reputation. Understand what is working for your industry, and what is not.

Trends
Know what is popular, and what is not. Gain an edge on your competitors by knowing and providing consumers what is desired and wanted right now. Know the environment, especially when the trends change.

Entrepreneurs must have a grasp on their business' industry before opening its doors. You need to know what is working in your industry and what is not, who your competition is and what they offer, and patterns of your consumers.

Small Biz Tip: Businesses to Start Now: Health

cheryl@gowithabc.com (Cheryl Sowa) — Fri, 26 Feb 2010 08:37:38 GMT

Tips from February 25, 2010

The Small Business tips today discuss businesses in the health industry to start NOW!

Home Health Care: The Baby Boomers are getting older, and so are their parents. Many are turning towards home health care to take care of their parents when times are tough and money is tight.
Yoga Studio: The yoga trend is here to stay. Take a class, and get certified to be a yoga teacher. Find out more information at your local gym or park district.
Personal Trainer: If you have medicine, physiology, or kinesiology experience, get certified to be a personal trainer. Start your own business and use friends and family as your first clients.
Catering/Personal Chef: People need help on dieting who are struggling with their weight. Start a healthy catering business or start a healthy eating business with diet guidelines and healthy recipes.

Daily Overview: The health industry will always be around and popular. Capitalize!

Small Biz Tip: Businesses to Start Now: Personal Improvement

cheryl@gowithabc.com (Cheryl Sowa) — Wed, 24 Feb 2010 16:58:56 GMT

Tips from February 24, 2010

The Small Business tips today discuss businesses in the personal improvement industry to start NOW!

Self Improvement: Personal improvement is a growing industry. Whether it is weight, personal problems, or a hobby that needs improvement, reach out to people.
Business Consultant: Help others who are struggling with their businesses by providing resources and guidance.
Tutor: With colleges getting harder and harder to get into, tutoring is a great field to delve into. If you have an education background, or information on a specific topic, reach out to students.
Staffing Agency: Many people lost their jobs and are looking for ways to break back into their industry. If you have many contacts, start a staffing agency.

Daily Overview: People are always looking to improve themselves. Reach out and provide help to those who want it.

Small Biz Tip: Businesses to Start Now: Money Matters

cheryl@gowithabc.com (Cheryl Sowa) — Tue, 23 Feb 2010 16:37:36 GMT

Tips from February 23, 2010

The Small Business tips today discuss businesses in the financial industry to start NOW!

Small Business Financial Adviser: Help businesses save money by planning, budgeting, & re-evaluating their finances.
Personal Accounting: During the rough economic situation, people are having a hard time adjusting their personal finances.
Retirement Consulting/Planning: Baby boomers are preparing to retire. Help them out & give them financial advice.
Tax Adviser: Tax time is quickly approaching! Ask family, friends, & community if they need assistance.

Daily Overview: People have questions about their finances in this economy. Provide them with answers with your business.

Small Biz Tip: Businesses to Start Now: Technology

cheryl@gowithabc.com (Cheryl Sowa) — Mon, 22 Feb 2010 16:34:00 GMT

Tips from February 22, 2010

The Small Business tips today discuss businesses in the technology industry to start NOW!

Smartphone Apps: iPhone, Blackberry, Droid, and Google Phones, these smartphones are taking the world by storm. Capitalize on the trend by designing and creating your own app. iPhones alone have over a billion downloads, and thousands of apps.
Software as a Service (SaaS): With small businesses looking to save money, start your own SaaS business today. SaaS deploys software applications across your business so you don't need separate licenses for each computer.
Education Technology: With the stimulus bill, many schools are receiving new state of the art education tools. One of the most popular are "smart boards" which are interactive white boards. Create new interactive programs, or handle distribution of various education technologies.
Website Design: Every business needs a website to establish their web presence on the web. Use your design and web skills to construct websites for various businesses.

Daily Overview: Technology is a major part of business and personal life. People are always in need of software, technology upgrades, and new programs.

Small Biz Tip: Start Up Questions: Financial Resources

cheryl@gowithabc.com (Cheryl Sowa) — Fri, 12 Feb 2010 16:21:05 GMT

The Small Business tips today discuss various forms of financial resources.

Your Pocket: If you want to start a business without taking out any loans, you can use your own money. It may be costly for you personally, but the benefits from your business could prove to be a good investment.
Friends & Family: Ask those who are close to you for a loan or to invest in your business. It would be a simple way to receive financial resources without going through a bank or other institutions.
Business Loan: A start up business loan from the bank or a lending institution is a way to receive the funds you need from a local institution. Find out more from your financial advisor or a local bank.
Small Business Association: The SBA is available to help small businesses locally. Visit the SBA website for tips and locations in your area.

Daily Overview: Obtaining cash to maintain and grow your business is one of the most complex and important ideas for small businesses. Find out more information here.

Small Biz Tip: Start Up Questions: Finding Customers

cheryl@gowithabc.com (Cheryl Sowa) — Fri, 12 Feb 2010 08:23:32 GMT

Tips from February 11, 2010

The Small Business tips today discuss how to find customers.

Chamber of Commerce: Introducing your business at your Chamber of Commerce will give you a start in connecting with other small businesses in your area. Additionally, ask for a link on your Chamber's website to yours about your new business opening. Use the support and organization in your favor to find customers in your area who are passionate about the small business cause.
Networking: Use your friends, family members, and business contacts to your advantage. Talk to them about your new business, and ask if there are any contacts they know that you can network with. Don't forget about social networking online as well!
Competition: As silly as it sounds, some of the best places to find your customers is by researching your competition. Find out what they are doing wrong, and what their customers are dissatisfied with. Use that to your advantage when starting out on your next marketing campaign.
Host an Event: Draw attention to yourself and your business by doing something for others. Hosting an event is simple and you can find great tips about hosting an event here.

Daily Overview: The only way you can get customers is to put yourself out there. Network, interact, and plan big!

Start-Up Businesses: A Timeline

cheryl@gowithabc.com (Cheryl Sowa) — Thu, 11 Feb 2010 15:51:49 GMT

Everyone has seen the start-up of a small business in movies or television. It all seems like a piece of cake, right? You take a great idea, find an abandoned location, declare that you're starting a business, and in a few weeks, your business is filled with products, people, and money. In reality, that is never going to happen (unless you're Uncle Jesse from Full House starting up the Smash Club).

Starting a business takes time, and lots of it. When you have a great idea, there's no time to lose. Start acting to launch your business is immediately. Most businesses average a 9-12 month planning and organizing process before opening its doors. Use the timeline below as a guide to track your progress on your start up business.

NOTE: This is a guideline. Every business is different. Use this as a basic template to see our recommendations on what to do for a start-up. Some businesses many not need all these steps. Some may need to delve deeper into certain aspects. Every start up business is unique.

8-12 Months Before Opening Your Doors

Choose your business based on an idea, skills, and business focus
Research your idea thoroughly

Target audiences
Possible locations
Various markets
Competition

Brainstorm a name for your business; check to see its availability and register
Apply for licenses from your city, county, state, and/or industry
Find your key advisers

Bankers (set up budget and business plan)
Lawyers, attorney (legal purposes)
Insurance brokers (liabilities for employees)

Choose your business location

Design a layout
Find out about zoning permits
Review leases with attorneys

Look into business organizations for networking and advice

Chamber of Commerce
Industry associations
Small Business organizations
Main Street Groups

Determine your business goals and mission statement

4-8 Months Before Opening Your Doors

Revisit your business plan for revisions and to add to it

Marketing ideas
Advertising campaigns
Social media campaigns

Decide on business type (Sole proprietor, Partnership, Corporation, etc)
Revisit your banker

Discuss final budget
Set up payroll
Discuss financial obligations

Create a petty cash fund for emergency
Draft a "back up" plan

0-4 Months Before Opening Your Doors

Double check business licenses and insurance
Arrange movers, Internet installation, telephone installation
Open business bank accounts
Set up "Grand Opening" marketing and advertising campaigns

Throughout community
Chamber of Commerce meetings
Online announcements

Draft employee handbook
Hire employees

Write copy for job postings
Interview employees

Contact IRS for Federal Employment ID Number
Contact your state for State ID Number
Apply for seller's permit
Contact state for tax forms, employment requirements
Contact state for mandatory posters in the office

Fair compensation
Sexual harassment
Safety

Order supplies, office furniture, and equipment
Determine business specifics (hours, email address, etc)
Train employees
Set up Website
Set up Social Media

Facebook
Twitter
YouTube channel

As stated, every business is different. Take these general guidelines to heart when starting up your business. If you have any business suggestions for start-ups, feel free to comment or shoot me an email for my next start-up blog at cheryl@gowithabc.com.

Small Biz Tip: Start Up Questions: First Things To Do

cheryl@gowithabc.com (Cheryl Sowa) — Wed, 10 Feb 2010 16:47:11 GMT

Tips from February 10, 2010

The Small Business tips today discuss the first things to do when starting a business.

Business Plan: You need to plan out how you will operate your business, your financial forecast, strategic business goals, and more.
Hire an Accountant or Financial Adviser: There are many complicated financial issues that go into owning your own business, and these professionals will be able to help you out.
Open a Business Bank Account: Separate your personal and business finances with an organized filing system. Don't forget to keep track of your finances at all times.
Join a Support Group: Joining a group, like a local business advice center, Chamber of Commerce, or trade organization will provide you with peer support from others who have been in your shoes before, as well as additional contacts for networking opportunities.

Daily Overview: Getting organized and connected are the two things you need to do first when starting a business.

Small Biz Tip: Start Up Questions: Legal Issues

cheryl@gowithabc.com (Cheryl Sowa) — Tue, 09 Feb 2010 16:37:27 GMT

Tips from February 9, 2010

The Small Business tips today discuss legal issues when starting a small business.

Keep legal! Know what the laws are specific to small businesses, but also learn what tax breaks there are! Find more here.
Your business should be defined well. Sole proprietor? Partnership? Corporation? What's it matter? Find more here.
Bad things happen to businesses too. How can you prepared for unforeseen problems? Business insurance! Find more information here.
Your name is your brand, protection is important. Copyright, trademark? Which do you use and why? Find out more information here.

Daily Overview: Legal issues can be complicated for new entrepreneurs. Preparing ahead of time = protection! Find more information about various legal issues here.

Small Biz Tip: Start Up Questions: Business Type

cheryl@gowithabc.com (Cheryl Sowa) — Mon, 08 Feb 2010 16:46:19 GMT

Tips from February 8, 2010

The Small Business tips today discuss types of business to start that are economy-specific.

Debt Collection: A very unpleasant job to say the least, but in a tight economy, bills go unpaid and there is always a need for debt collectors.
Job Search Agency: Are you personable? Outgoing? Have a number of contacts in your industry? This could prove to be a great business to start
Computer Security: If you're computer savvy, look into this industry. You would be protecting networks and systems against unauthorized use and abuse.
Energy Auditors: A great job for the green-friendly people. Businesses and homes need help to save money by reducing energy costs.

Daily Overview: Start a job that this economy NEEDS. Find your niche based on your experience and get started!

A Window to Your Business World

cheryl@gowithabc.com (Cheryl Sowa) — Mon, 08 Feb 2010 15:43:40 GMT

Retail shops are one of the most common small businesses in America today. To compete with the other boutiques, mom & pop shops, and, yes, even retail chain stores, it is important to appeal visually to your customers. An appealing and motivating storefront window will grab people's attention and attract them to your store. Let's take a closer look.

Recognition
To make a name for your business, you need to be recognized by customers, potential customers, or people who were referred to your business. Without being recognized, who will notice you? You need a few simple things to be recognized.

Business Name- Stating the obvious, your business name must be prominently displayed for all to see.
Logo- Your logo is what will help people "brand" your image in their brain. More on logo's in a bit.
Business Information- Don't go too overboard with using your business information as a part of your storefront design. It is important to have your store hours, address, phone number, email address, and/or website on your storefront for simple information. This information is typically on the door to businesses, but it is important to be there nonetheless. Make sure it is professionally constructed, and that all the information is current.

These three components make up the first visual impression of your business. As first impressions are lasting, it is important that they are able to reach a multitude of people. Your storefront will obviously be seen by those who are standing right in front of your business, but what about those further away? It is important to make sure that your business name and logo can be seen from the opposite side of the road.

Enticement
What you display in your storefront windows is what people outside will know, understand, and see about your business. There needs to be enticement, or something to lure customers in your business, as a part of your storefront window display. The goal of your storefront window is to get people to act upon their feelings that you evoke from your display. You must create a need for people to get curious about your store and want to enter.

Logo- Each business needs to have a logo, regardless of how simple or complex it is. Your logo should be unique, brand your business, and easy to recognize. Find more tips on creating a logo here.
Product Placement- Your storefront window should give a sample of what you are providing inside your business. Having a few of your products in your window is a good way to entice customers to enter. Include a wide variety of products: fairly inexpensive, costly, new shipments, sale items, and best sellers. The most important product in your storefront window is the one that sets you apart from other stores.
Aesthetic- Your storefront display needs to be pleasing to the eye. Spacing, colors, design, and layout are all important factors. Glass shelves are a great way to blend in with the glass for the storefront window. Also, you could try to hang various parts of your display from the top of your window ledge with just a few hooks and fishwire. Create a theme for your design so that the colors and layout will coordinate with your products.
Keep Your Display Unique- People will notice any changes in your storefront display. It is important to make it unique to you and anything important going on in your business or in the world around you. Change it up for holidays, big events, important sales, and season. Make sure to meticulously plan your next design before you start to deconstruct your old display. Don't forget: changing your window is a free advertisement.

Storefront window displays can be an excellent first impression on a potential customer if you plan, design, and execute correctly. Plan ahead, show off all the right stuff, and lure your customers in the store with your logo, product placement, and design. Get creative!