If you’re not a bean-counter by nature, then handling the accounting tasks for your small business is probably a giant headache. I’m not a bean-counter either, and my impulse is to find a number-cruncher, and throw all my paperwork to that person as fast as possible.
Not a good idea.
Did you know that the U.S. Tax Code contains over 18,000 pages? And the government keeps adding more pages, addendums, and memorandums to that code every year. Yikes! What does this mean to you as a small business owner?
You need a fabulous accountant.
Actually, you need more than a fabulous accountant. You need an accountant who specializes in your area of small business. If you run a manufacturing operation, you need a specialist who understands how to maximize the tax deductions for manufacturers. If your small business is farming or livestock, you need someone who knows all about IRS Publication 225. I have a couple of businesses, MLM and consulting, so I need an accountant who has the low-down on how to maximize my home-based tax deductions.
Finding a Great Small Business Accountant
To find the perfect accountant for your business, don’t flip through the yellow pages. You’ll just drown in the massive listings there. Instead, follow these three simple steps.
Step 1: Get Referrals
Dig through your network of business acquaintances and ask for referrals from people whom know you well, and who are familiar with your business. You might check with your attorney, your banker, your real estate agent, and your insurance agent. You can also get recommendations from people who own small businesses similar to yours.
Step 2: Conduct Interviews
Remember, your accountant can literally hold your financial future in his or her hands. Don’t be tempted to hand over your bank records to the first recommended accountant. Do your homework first. Be sure the accountant specializes in small business, and has a thorough knowledge of your industry. In addition, find out whether the accountant is more of a paper-pusher (filling out the right forms and sending them in on time) or more of a tax advisor. You’ll want to choose an accountant who matches you goals. If you are willing to do quite a bit of financial research yourself, you won’t need a tax advisor. If you want to focus more on other parts of your business, then you’ll need an accountant who can more actively advise you.
Step 3: Negotiate an Agreement
Most accountants work on an hourly basis when handling normal tax questions or filing simple forms. When it comes to filing federal tax returns, some accountants work hourly while others charge by the page. Find out how your chosen accountant charges for his or her time, and get the deal in writing before proceeding forward. Most accountants, being excellent administrators, will have an agreement already drawn up. If you agree with the terms, all you have to do is sign. If you don’t agree with all the terms, try to negotiate a modified contract, or pick a different accountant. One final point: find out what the accountant charges should you need to defend your tax return to the IRS. Some accountants charge extra fees while others include this kind of work in your tax preparation fees.
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Photo credit: studying till the sun goes down
Tags: small business accountant
Posted by Stephanie on Apr 15, 2009 in
Small Business Marketing 
Guest post by Jackie Nagel, Synnovatia
Your approach to LinkedIn is going to be as unique as you and your business. To demonstrate what an effective LinkedIn plan looks like, allow me to share my plan based on my objective.
The Java Jolt
Before my first cup of coffee has time to chill, I log onto www.linkedin.com to see what’s happening with my 3,737,700+ nearest and dearest friends.
If you’ve spent any time on LinkedIn, you know you can easily burn through your day and never leave the site … or your office. The maximum amount of time I dedicate to LinkedIn/social networking each day is 30 minutes. A timer keeps me honest!
Given my LinkedIn objective to position the expertise of Synnovatia™ with business owners involved in start-up and development, and a finite amount of time, I get busy.
‘Da Plan – ‘Da Plan
1. Check the Home Page - the location of the latest updates of connections, questions, answers, and recommendations from my network.
- Rolling your mouse over the links provides insight into who is joining your network.
- Extend an invitation or craft an Inmail (the LinkedIn email system) to those in my network with whom I want to connect directly. (Networking online is no different than offline in that building relationships must be the priority.)
2. Proceed to the Answers Section – the place where those seeking additional information will post questions.
- Select the Answer categories that best fit my objective.
- Peruse my pre-selected categories to locate one question to answer that satisfies my objective.
3. Identify and seek one recommendation.
4. Identify and invite one contact to join my LinkedIn network.
Focusing on one connection, recommendation, and/or answer each day allows you to fulfill your time commitment with your name appearing on the home page of everyone in your network, leveraging that valuable ‘real estate’ known as the Home page.
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Jackie Nagel, Founder of Synnovatia™, energizes entrepreneurs that are stuck, stalled, starting up, or stretching with a pioneering coaching approach that drives profits, productivity, and performance.
Photo credit for stopwatch: Stopwatch
Tags: jackie nagel, linkedin, Planning
Posted by Stephanie on Apr 14, 2009 in
Small Business Marketing 
In a world awash with spam, advertisements, and tons of direct mail crap, word-of-mouth advertising still reigns supreme as the factor that influences consumer shopping and buying habits.
If you are a small business owner, here are some amazing facts about word-0f-mouth promotion that you will definitely want to know (thanks to Bazaarvoice for this very cool collection of stuff).
Read on! You’ll be surprised how these facts might alter the way you look at your business, your interaction with customers, and the way your promote.
Facts About Word-of-Mouth Advertising You’ll Want to Know
For instance, here are just a few of the facts you can find on the Bazaarvoice website:
“Person like me” still most trusted source for information about a company and, therefore, products. (Edelman Trust Barometer, November 2007)
Recommendations from family and friends trump all other consumer touchpoints when it comes to influencing purchases, according to ZenithOptimedia. (AdAge, April, 2008)
According to a global Nielsen survey of 26,486 Internet users in 47 markets, consumer recommendations are the most credible form of advertising among 78% of the study’s respondents. (Nielsen, “Word-of-Mouth the Most Powerful Selling Tool”, October 2007)
86% of consumers read online business reviews before making purchasing decisions; 90% of whom say they trust these reviews. (Kudzu.com survey of 600 users, December 2008)
84% of consumers earning more than $150,000 annually visit sites where customers review and rate products and services including restaurants. (The Luxury Institute, April 2007)
83% of online shoppers would make purchases if sites offered increased interactive elements. (Allurent, January 2008)
Consumers were willing to pay between 20 to 99% more for a 5-star rated product than for a 4-star rated product, depending on the product category. (comScore/Kelsey, October 2007)
These are just a FEW of the many facts that Bazaarvoice puts out. Plus they have a killer blog. Check ‘em out … your small business will definitely benefit:
Bazaarvoice
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Photo credit: takomabibelot
Tags: small business, word of mouth advertising, word of mouth facts
Posted by Stephanie on Apr 13, 2009 in
Small Business Marketing 
Guest post by Jackie Nagel, Synnovatia
Social networking is springing up like weeds on the web. LinkedIn. FastPitch. Twitter. YouTube. Facebook. Biznik. Plaxo. Ping. Schmoozii …
The prospect of reaching the world with your message is intoxicating. Equally, the amount of time spent forging through the plethora of websites with their unique designs and features can overwhelm the most organized individual.
Make Your Time Count
As simple as it may sound, the first step in establishing an effective social networking plan is to set a clear intention for your approach.
For those who are shoppers, spending time at www.linkedin.com, without a clear objective is much like shopping without any idea of what you need. You wander from store-to- store, aisle -to- aisle, wasting hour upon hour only to leave the premises unfilled and disappointed. (Gosh, that does sound like the LinkedIn experience, doesn’t it!?)
However, armed with a clear picture of your desires, you zoom directly to the aisle that contains what you need. Although the shiny objects at the ends of the aisles may still catch your fancy, your time is wisely invested.
Set Your Objective
What is your objective for the time invested on LinkedIn? Do you want to position yourself as an expert? Build partnerships and share clients? Find a new career? Connect with a company that up-to-this-point appears to be clandestine? Whatever the reason for your social networking activity, you want it to contribute to your over-arching professional objective.
Time used on www.linkedin.com cannot be recaptured or resold. Whatever you desire, a reason that is clear and succinct ensures the productive use of your time.
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Jackie Nagel, Founder of Synnovatia™, energizes entrepreneurs that are stuck, stalled, starting up, or stretching with a pioneering coaching approach that drives profits, productivity, and performance.
Tags: jackie nagel, linkedin, social media
Posted by Stephanie on Apr 10, 2009 in
Small Business Tax Tips 
Income tax, estimated tax, self-employment tax, social security tax, federal unemployment tax … ack! Are you confused yet? Don’t have “people” to help you figure out which taxes your small business needs to pay?
Before you tear your hair out in sheer frustration, check out the tax resources that are available on the Small Business Administration (SBA) website. The SBA’s online tax section is made for small business dummies. You can literally know nothing about taxes, read the info on the website, and walk away knowing exactly what you need to do.
SBA Online Tax Resources
This guide covers everything from federal taxes to state and local taxes. You will find out exactly which taxes you need to pay, depending on whether you are incorporated, whether you have employees, and a whole bunch of other factors.
Business taxes can be confusing, and just because you own a small business doesn’t mean you automatically know what to do. If you don’t already know which business taxes you are responsible for, do yourself a favor and read through the SBA tax section. You’ll save yourself a lot of trouble with the government later on. And you know what they say about the government:
“It’s a darn good thing we don’t get all the government we pay for!”
When it comes to small business taxes, you definitely need to do the right thing, and then do things right. Get the scoop on the SBA website:
SBA Online Tax Resources
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Photo credit: Get your taxes done
Tags: SBA, small business administration, small business taxes
I never joined the military but, having worked in the family businesses from a very early age, I nevertheless grew up knowing the value of a good sergeant. They say that sergeants run the military. Sergeants also run the best small businesses. Having good sergeants is the difference between being a small business owner and being self-employed.
The Difference Between Small Business Ownership and Self-Employment
Someone who is self-employed may “own” her business, but nevertheless does everything herself. She’s not afraid to get her hands dirty, but she can never claim all the benefits of being a true small business owner. Since she does most of the vital work of the business, the self-employed person can rarely leave the nitty-gritty of the business. Vacations are usually impossible, as are other high-level business activities like strategy and product development.
On the other hand, the small business owner knows how to get her hands dirty, but doesn’t have to if she doesn’t want to. The true small business owner has sergeants. Who are sergeants? Sergeants are well-trained employees who help run the majority of the business, and who are invested in the success of the business. Sergeants keep the business running smoothly and to the owner’s standards, whether the owner is present or not.
The Pros and Cons of Small Business Sergeants
As with everything, sergeants have their pros and cons. The pros are obvious. Small business owners who employ great sergeants can focus more on business development, strategy, and high-level networking. These owners don’t have to spend all their time in the trenches. Plus, they can actually go on vacation for rest, rejuvenation, and inspiration.
There are also the cons. You have to pay a quality sergeant well. Also, good sergeants can be hard to find. The truly great sergeants are in high demand, and are usually already employed by other businesses. That leaves the option of discovering a “diamond in the rough” and training your own sergeant. Developing a good sergeant takes time, energy, and a lot of trial and error. But, the rewards are rich.
I am fortunate to work with one fabulous sergeant exclusively, and two others on a contract basis. Having trained my main sergeant from the ground up over the last seven years, I’m not about to let her go. I offer a handsome bonus each year and strive to make sure our relationship is mutually beneficial. She keeps all three of my small businesses running smoothly, so that I mostly handle any exceptions on a daily basis. I spend the rest of my time on marketing, business development, and product creation.
Have there been rough times in the past? Absolutely. Screw-ups and miscommunications happen on both sides, but that’s just part of being human. We’ve gotten past them each and every time. With my sergeant running the businesses most of the time, I can spend 5 weeks in Mexico each year, and focus on the parts of my business I really love.
Based on the idea of having sergeants, are you a small business owner or someone who is self-employed? Which model are you more interested in? And if you want to be a small business owner rather than self-employed, do you know of any potential sergeants in your network?
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Photo credit: Staff Sergeant Goodwin
Tags: self-employed, sergeant, small business owner
Posted by Stephanie on Apr 8, 2009 in
Small Business Management 
Mostly I write about very hard-nosed practical business tips-how-to guides, lists of things small business owners need to know, stuff like that. Every now and then, though, I just have to let the “zen cowgirl” part of me speak up. Metaphysics is a big part of my life, and I do feel that spiritually-balanced entrepreneurs are happier, not to mention more inspired and successful.
So here goes. This is a quote from one of my favorite spiritual voices, Abraham-Hicks, from one of their workshops. This quote goes out to all the rebels in my life (and there are a lot of them). It often takes a rebel to start a small business because who else would be crazy enough to do it? So this quote is for you.
“…when I’m talking about the successful ones, what I really mean is the really happy people. People that are really joyful, that want to get up every day, that are eager to get into their day. Almost without exception, they had a pretty rough beginning, which turned them into a powerful rebel initially. And then they found a way to relax into their natural birthright of Well-being.”
The part of this quote that really strikes home for me is this: “Almost without exception, they had a pretty rough beginning, which turned them into a powerful rebel initially.” Wow! Does that make me feel good or what? Having just written about being a perennial of Headbangers Anonymous, I am comforted by the idea that being a rebel is all right, that many of the joyful and successful people started out as rebels.
Relax, Dammit!
And then there is the “solution” part of the quote: relax! How many small business owners do you know who really know how to relax? Among my close friends, most whom are small business owners, that relaxation is becoming mandatory. Burnout is the other alternative, and it’s not a very attractive option. So relaxation it is.
I relax by getting on one of my “nice” horses (no bucking, biting, kicking, or rearing). I read a fabulous book by Dick Francis (about horses, of course). I puff on a nice cigar. I watch a silly sitcom on TV, like Two and a Half Men.
Are you a rebel? Do you find relaxation helps you be a better small business owner, spouse, pet mom, human being … [fill in the blank]? What do you do to relax?
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Photo credit: Rebel
Tags: abraham-hicks, rebels, small business rebels
Posted by Stephanie on Apr 7, 2009 in
Small Business Management 
Are you a member of the bloody-forehead club? Been banging that head against a wall a little hard? I have and I often do. This is a picture of me, needing to visit a “Headbangers Anonymous” meeting!
Take a load off.
We small business owners often labor under the misconception that when business sucks, we just need put in a little more elbow grease. You can do that, but I gotta tell you that you’ll just be shortening your life.
See, the love of my life is an acupuncturist and serious student of metaphysics. When he sees me banging my head against a wall, he loves to tell me that all I’m doing is whacking a year or two off my life. According to Chinese Medicine, we are all born with a certain amount of “qi” or life energy. We can use it all up right now in head-banging, or we can slow down and spread that life energy over our entire lives (that means smelling roses, and stuff like that!).
Yeah, it can be a little hard to wrap the brain around, but think about it like this: your life energy is like a roll of toilet paper, and the faster you unroll the paper, the faster you get to the end. End of the roll = end of your life.
Whew! Now that we’ve gotten “Small Business Metaphysics 101″ over with, we can move onto real, hard core, productive entrepreneurial ideas. In the same vein, here’s a great article by Brian Clark to dig into. It’s called “How to Sleep and Daydream Your Way to Success.” It debunks the myth of the hard-charging entrepreneur, and highlights examples of entrepreneurs who have gotten their sparks of brilliance outside the office, while daydreaming, for instance.
Read “How to Sleep and Daydream Your Way to Success” here.
Enjoy, daydream, and be brilliant!
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Tags: Brian Clark, daydreaming
Posted by Stephanie on Apr 6, 2009 in
Small Business Management 
Are you a small business owner looking for ways to cut overhead costs and save a few bucks? One place to look is at your voice mail system. Many small business owners signed up for voice mail service a few years ago, when the technology wasn’t as slick and costs were higher.
These days you can get full voice mail with email notification and call forwarding for very low prices ($8.95 per month or less). Here are a couple of small business voice mail services that you might want to check out. They might prove to be just one more area where you can reduce your overhead costs.
Onebox
The Onebox virtual phone system features an auto-attendant with a customized, professionally recorded greeting, multi-level menus, voicemail, faxing, conferencing and administrative tools for tracking usage and managing users.
Kall8
Kall8 is a fully integrated toll-free service that offers traditional 800 service with a complete set of online tools to manage and track your toll free numbers in real time. With Kall8, you can instantly activate and forward your 800 numbers, view calls, and analyze the results of your ad campaigns online.
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Photo credit: Messaging
Tags: affordable voice mail
Right and Wrong Ways to Use Humor in Business
Humor is a great way to promote your small business, but did you know that there is a right way and a wrong way to use humor in business? There is a fine dividing line between humor as an engaging hook and humor as an annoying gag that has gone too far.
Luckily for us small business owners, Ken Beaulieu, Chief Content Creator at FuelNet, has put together a guide on how to use humor in business, as part of the Ebook “10 Effective Marketing Tips to Engage Your Customers.”
Get your free copy here.
In this eye-opening ebook, Ken lays down the five principles for using humor in your business. These are:
Use humor to make a point, not just to score a laugh.
Get serious after you get a grin.
Make fun of yourself, not your product.
Check in with your customers frequently to see if your humor is still relevant and compelling.
Expect complaints.
These are great tips that every small business owner needs to know about.
Get your free copy here.
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Photo credit: #112 > call the cops
Tags: humor, small business
