The First Year
The first year of your business brings enormous development and change and, at the same time, calls for a tremendous amount of time and nurturing. Get advice on how to ensure your company's first year is the foundation for long-term success.
Mary Sullivan
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ArchivesFinding an Organizer
October 04, 2008, 2:40 PM
My last post was about using the services of professional organizers when you don't have time to do all your important tasks. (And what small business owner does have time to do everything?!) Somebody wondered how you find an organizer. I am happy to connect you with...
How to Stay Organized
October 01, 2008, 6:20 PM
A service I was slow to adopt but now heartily recommend for every busy entrepreneur is that provided by a professional organizer. There are times when it would save you a lot of grief to get something done sooner rather than later, but you simply don’t have the time to do it. If you are a solo entrepreneur you are wearing all the hats, and that can often be stressful. Save yourself some wear and tear -- hire an Organizer.
What's with All This Paper?
September 22, 2008, 9:45 AM
The paper companies are going to hate me for this, but here goes: This week, I'm upending my life and moving out of state. My business is now almost seven years old, and for most of that time I diligently saved records of every client project -- on paper. What was I thinking?! Now, I'm shredding and recycling, shredding and recycling, and wishing I had gone paperless some time ago.
Find Time for Marketing
September 17, 2008, 7:15 PM
Surprising to me (as a Marketer myself) is the fact that many small business owners say they don't have time for marketing. But what is the cost to your business if you don't do it? Can you really afford not to?
New U.S. Patent Fees
September 15, 2008, 3:55 PM
Any inventors out there? Effective October 2, 2008, the U.S. Patent Office is increasing the fees for small entities (fewer than 500 employees) to file for a patent. They are going to an a la carte fee structure. Whereas the filing fee for small entities today is $395, the new fees are...
Invest in Free Classes on Entrepreneurship
September 13, 2008, 10:25 AM
Did you know there are free classes in entrepreneurship? I knew about some of these but didn't know they were free. I was surprised to see this list (complete with web addresses, but not live links) from Anthony Cerminaro. A number of them are with top name business schools, too...
Can You Start Your Own Business 'On the Side'?
September 12, 2008, 10:50 AM
Many people think about starting a business while they're still employed, but only a small percentage actually get the business underway while working for an employer...One reason may be that the person's employer would object, especially if it is a related business. Another reason is just lack of personal "bandwidth"...
Partnering with Other Businesses
September 12, 2008, 10:25 AM
There is a strong and, perhaps, natural temptation for entrepreneurs to want to go it alone and not involve other businesses in what they do. There is always the thought that creating an alliance with others may undermine your own business and profits. Why, then, do some business owners form business partnerships with other companies?
Recordkeeping Tips
September 06, 2008, 9:25 AM
Courtesy of the Adaptax newsletter (from my tax preparer), here are five tips on recordkeeping that will help you avoid errors with the IRS: 1) Receipts - Even though the IRS does not require receipts for meal and entertainment expenses of less than $75...
How Much Will It Cost to Start Your Business?
September 03, 2008, 6:35 PM
Too frequently, a new entrepreneur will underestimate how much money it will take to start a business. The result is usually that the owner ends up in a cash flow pinch, and that's a tough time to have to go out and find financing. It's important to anticipate how much money you will need, and do some contingency planning around where you will be able to get it. How much you need depends on...
Latest Comments in The First Year posts
Hi Mary and thanks for giving a breakdown of how a business owner should keep track of expenditures. I live in Canada so some technicalities may differ, but essentially the taxation system is the same. I keep all my bills in an envelope and enter all the info into an EXCEL Spreadsheet as each new bill arises. This doesn't cost anything and ensures that I won't get overwhelmed at tax time. It keeps things in order so I can catch any mistakes in accounting early on if they occur. It'll also make things clear if ever my records are called into question in an audit. The more prepared you are the harder it will be for the tax bureau to poke holes in your claim, which means more money in your pocket as long as you are honest and have genuine expenses. All the best! G
www.boom.thevfusiongroup.biz ...
By: Gopal Devanathan
on
Recordkeeping Tips
www.boom.thevfusiongroup.biz ...
Mary- Great advice. The start of an employment relationship is a golden opportunity to start out on the right path towards success. When employees have experience don't forget to really find out what they know and don't assume they understand all the jargon or processes that you use. My February 29th post, "Jargon at Work" on The HR Answer Blog adds to this subject.
By: Rebecca Mazin
on
Train New Employees Thoughtfully
Great post.
We have been looking for someone to post this type of information in our community.
Respectfully,
Nelson Bruton
...
By: Nelson Bruton
on
Social Networking or Online Community?
We have been looking for someone to post this type of information in our community.
Respectfully,
Nelson Bruton
...
Hi MAry, I am so glad you talked about the business model of franchising. Just so you know, There are a couple of other blogs that folks should look at, including the franchise blog right here on AllBusiness.com Thanx, Joel Libava ...
By: Joel Libava
on
The Franchise as a Business Model
Sounds like the sales experience was good to me; you just couldn't accept the reality that you had to pay as much as the rest of us pay. Sorry you're cold. Sounds like a personal(ity) problem to me. sorry intimidation of frontline staff didn't work for you; it rarely leaves one feeling warm, although red hot anger can occur. You need to look for more opportunities to gain warmth. Try the local Y; they have some good programs; perhaps transcendental meditation. Although, getting paid (I assume someone pays you for generating hits) to ventilate is a probably cooling experience for some.
By: Robert
on
The Apple Customer Experience Left Me Cold
http://store.apple.com/1-800-MY-APPLE/WebObjects/AppleStore.woa/wa/RSLID?mco=44BD9AA1&nclm=CertifiedMac ...
By: Paul Greatbatch
on
The Apple Customer Experience Left Me Cold
Welcome to the Coolness of Apple. What you really should be buying is the MacBook Air for the ultimate Cool Machine! Black is where it's at, but, if you wish to be Totally Cool, you MUST get the MacBook Air! Money is no object when dealing with Apple! Be Cool, Mary! Don't be an Irish Cheapskate!
By: Mike Kaufmann
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The Apple Customer Experience Left Me Cold
I'm a big fan of Apple's products and have owned both a MacBook and a MacBook Pro, but agree that the surcharge for the black model seems a little pricey. But they've done it for some time and apparently lots of folks are willing to pay extra to get the gorgeous black model. However, complaining that the manager wouldn't lower the price for you seems a little silly. But there's one thing you might try -- A friend of mine worked at an Apple Store and said that normally they won't negotiate price, but if you purchase an extended warranty at the same time as you buy a computer, the manager will occasionally be willing to give you a discount on the combined price. Also, you might try other retailers that carry Apple products, such as Amazon, Best Buy, etc. Usually the price is about the same, although with Amazon you may be able to avoid the sales tax, depending on where you live.
By: Mike
on
The Apple Customer Experience Left Me Cold
Apart from it being a well known fact that the black MacBook costs more than the white, that Apple never do discounts - even for those lucky enough to see the store manager and only offer reductions for education buyers(this is a great democratizing policy which ensures everyone has the same choice when buying a Mac), there are actually good reasons why there is a price differential. Having been involved in the packaging and moulding industry for many years, I can assure you that getting the colour/strength/translucency formula right is no trivial matter even for likes of Apples design engineers who perfected most of the techniques they themselves use. Go out and find some comparable moulded plastic product and have a close look at the colours and the depth of colour through the material. I know of no other company who can get the same quality as Apple, for any colour let alone black which is probably the most difficult to achieve. You will come across plenty of translucent plastic products but most at best achieve a murky smoky black which has nothing of the colour depth and translucency of the MacBook Black. White is trivial by comparison. That said, I'm sure you can appreciate the cost implications for both development and production, both of which have some bearing on the final price. Insisting on one price for all where one product subsidises another is not a sound business strategy, nor is it sustainable. Now, the choice is yours. The standard white MacBook is an engineering marvel combining excellent hardware and the best user OS on the planet, the MacBook Black has that 'something else' quality no-one else is capable of producing. At 5% extra it's a steal.
By: Paul
on
The Apple Customer Experience Left Me Cold
I love the dynamic between instinct and a learned process.I find it is very true.
By: Garikai Nhongo
on
Entrepreneurial Instincts
I agree with this post so much. I am a small business attorney, and I meet with so many new business owners that want to "try this out" and not really dive in, and others who are so well funded that they don't know what to do with all the money. Both scenarios are recipes for failure. Being well funded is great, and it can happen with a good enough idea. But the bottom line is this: Create something to can sell NOW. Generate a revenue stream NOW. Yes, there are great ideas out there that will garner enough interest and VC money that they will get off the ground and become profitable. But this is very rare. For the other 99.99% of us, we need to sell something for a profit right from day one. It's important to have a ten year plan. But you also need a one year, one month, one week, and by-the-end-of-today plan too. Thanks for the article.
By: Jim Voigt
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An Argument in Favor of Bootstrapping
"Somewhere along the line, you simply close your eyes and leap." "there's no harm done in trying".. depends actually, if one have invested his whole life for something then suddenly it all disappears, what would happen to this person? I agree that there should always be something for the rainy season...
By: Joy
on
May the Forces Be with You
Hi Mary, thanks for pointing out this post. The venture capital myth is the one that sounds so exciting and snares the inexperienced. Yet, a tiny tiny percentage ever get VC money. The rest just waste precious time and effort in a fruitless quest for money, when they could be building their businesses (which is what I recommend). Anita ...
By: Anita Campbell
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Myths About Financing Startups
There needs to be a different way to read "inquiries to your account." I had *one* inquiry I initiated in the past 24 months, yet I had a lender tell me they considered me a risk because of "excessive inquiries into my credit." These inquiries were ALL for unsolicited offers of credit. A practice that needs to be stopped NOW. Why can these credit card companies run a check on my credit without my permission? Why isn't that Illegal? I've contacted both the credit bureaus and the credit card offerers, but this doesn't seem to stop these incessant credit card mailings. Why should my score drop because direct marketers have my name in a system? Also - it's stunning how many organizations don't know how to read the reports. For some reason there are accounts in my credit report going back to 1984. I currently have only 4 accounts open. All 19 of the closed accounts read, "Closed. Never late." Yet, I was told by the same lender that 23 accounts were "too many accounts"!!! The dumb thing? Of the four accounts I have open, two are with that lender. One is a mortgage, and one a credit card. All say, "Good standing. Never late." I give up. Perhaps the REAL meltdown happened because individuals working for lending companies don't know what they are doing.
By: Beth
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New Credit Scoring Coming
I have been a bank lender for 18 years. I have always been a little leary about FICO scores and anything where automatic credit scoring is used. Though FICO scoring has not been around very long, it is not the culprit for the subprime mortgage crisis. Borrowers can choose to set any minimum FICO threshold. The lenders have been so short term profit motivated that they simply ignored common sense lending practices. The model might change but the lender is still the one that must understand what kind of risk profile they are willing to accept.
By: Sam
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New Credit Scoring Coming
I think it's very true , i do have a green bsiness that i am sourcing for funding for.The business is proccessing grounded waste plastics and waste wood products together through asingle or twin screw extruder into wood plastic composites for the design furniture and construction industries.
By: samuel popoola
on
A Green Business is Good Business
I lamented over this same process myself before starting my business. I found the best resource to be Financing Your Business from Entrepreneur Magazine.
By: Maureen Green
on
Financing to Start a Business
Good post. Many of the success gurus stress that one of the key factors of success is to surround yourself with people who encourage you. Negativity just brings you down and breeds self-doubt.
By: Jim Smoot
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Positivity
Web 2.0 may be the best choice for SMBs because slowly the concept of marketing evolves. For example the exchange of information thru blogs is more efficient than using the forums and the list might go on. In my opinion Web 2.0 might be more efficient for SMBs than for large businesses because the amount of information is smaller and it?s easier to implement ?the new world order? to a small business. If the ?big guys? do it first then the smaller businesses will follow the example and implement the "conversational marketing" but if the SMBs do it first then they will have aa head start that could be very useful for their future Ada Opiate Addiction ...
By: Ada
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Wondering About Web 2.0?
I think it's reasonable to say that larger businesses enjoy the exposure and success of Web 1.0 and therefore, may not feel the need to jump on the Web 2.0 bandwagon just yet. I believe any hesitant SMBs will catch on to Web 2.0 and take it to the next level as it is clearly an effective and cost efficient way to promote their businesses. I think big business will catch up with it once it realizes smaller businesses are taking away from them--but then it will be back to the same old battle.
By: Rebecca
on
Wondering About Web 2.0?
I think it's good advice for any matters that deal with your business, but especially in questions of ownership. The internet is a great resource, but I would not risk my business on the accuracy of what I read. it's worth the lawyers fee to know for sure.
By: Jim
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If You Have to Ask, Hire a Lawyer
Great point about using fear as a motivator. Fear is what keeps the deer alive. It's being being frozen in the headlights that's the problem.
By: Jim
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Fear -- Another Take
Thanks Mary. I've got it bookmarked. It will come in handy.
By: Jim Smoot
on
An Online Business Dictionary
Just over 32 percent of new business owners need less than $5,000 to start or acquire their business. Amazingly enough, 25 percent of business owners need no dollar amount to start up. When starting out, you want to make absolutely sure you are not jeopardizing the welfare of your family to take this risk. Everyone I know in my business that failed, did so because they weren?t financially secure enough, they weren?t capitalized enough to enter into their business, and the dept ended up overwhelming them. Even if you?re doing an SBA (small business administration) loan, typically they want that loan secured to your house and you run the risk of losing your home. If you have a business idea, you need to keep it in proportion to the amount of money you have to pursue it. Instead of building a $400,000 franchise store, you might need to look at buying a $15,000 coffee cart that you can drive around to local events. There?s always a way to work out your idea without exceeding your means. "Are You Ready to Be Your Own Boss?" is a book I wrote intended to be an easy-to-read and comprehend book for the average "Joe" wanting to start a business. The book can be located at Amazon.com or through my website at http://www.plainandsimplebooks.com ...
By: Carol Denbow
on
Get Creative When Raising Startup Money
I agree with Denise that cash flow issues are really a Catch 22. While the FSB methods are excellent suggestions, I failed miserably when I was first starting out, and I did try to use the recommended FSB methods. But they were not realistic to my situation. I could not bootstrap, because I had no reserves. I could not convince friends, family, or banks that if given a chance my business would be a grand success. Furthermore, grants, venture capital, and angels appeared to be more mythological than realistic. One of the biggest hurdles I faced as I tried to make my business a reality was how to convince a lending institution or anyone that my business would make enough money to repay the requested loan amount. The bottom line is that I found out, in each attempt I made to acquire a small business loan that collateral is one of the biggest setbacks most entrepreneurs and small business owner have to face and overcome in order to successfully acquire a small business loan. Hands down, I found it very difficult to convince any bank that my home-based business could be a tremendous success, if I could acquire the resources I so desperately needed to get things on stream. The fact remained that my efforts were fruitless. However, there are online options available to small business owners that focus on addressing the type of cash flow problems these individuals face. I discovered an online lending resource, www.thesnaploan.com. Based on my experience with this site, I was able to successfully acquire a start up loan for $100,000, without collateral. This was one of my biggest hurdles, when I was trying to get my business established. What?s even better is that I was able to apply online, and I got my approval pretty fast, about two weeks.
By: Sidney Wahding
on
Get Creative When Raising Startup Money
When I was beating pavement trying to get my own personal home-based business off the ground and establish it as a real business, I almost lost hope. I kept hearing the same thing over and over again at every bank I tried. One of the biggest hurdles I faced as I tried to make my business a reality was how to convince a lending institution that my business would make enough money to repay the requested loan amount. The bottom line is that I found out, in each attempt I made to acquire a small business loan, that collateral is one of the biggest setbacks most entrepreneurs and small business owner have to face and overcome. I found it very difficult to convince any bank that my home-based business could be a tremendous success, if I could acquire the resources I so desperately needed to get things on stream. The fact remained that my efforts were fruitless. I discover an online lending resource, www.thesnaploan.com. Based on my experience with this site, I was able to successfully acquire a start up loan for $100,000. What?s event better is that I was able to apply online, and I got my approval pretty fast, about two weeks. It sounds like this website could be right up your alley. Hopefully, we will be able to improve the sited GDP of 46,000, by spreading the word.
By: Sidney
on
Businesses of One
Mary -- All good points. Once the start up cash is in place, they have to keep it going too. Some will do that using the same methods you've identified here. But it won't last forever. I tackled some additional ways to keep the cash flowing in my book "Small Business Cash Flow: Strategies for Making Your Business a Financial Success." More info at http://www.cashflowtruth.com ...
By: Denise O'Berry
on
Get Creative When Raising Startup Money
Hi Rob,
It's going to be difficult to get a bank loan when your business is new. I recommend you contact SCORE (www.score.org) and consult with one of the retired executives who volunteer for that organization. If anyone can give you advice on how to find financing, they can.
-Mary ...
By: Mary Sullivan, The First Year
on
Businesses of One
It's going to be difficult to get a bank loan when your business is new. I recommend you contact SCORE (www.score.org) and consult with one of the retired executives who volunteer for that organization. If anyone can give you advice on how to find financing, they can.
-Mary ...
According to the statistics sited of a GDP of 46,000, there appears to be some issues. For instance, it's growing 4 times faster, but the problems we face grow right along with it. Here's a realistic scenario. I have recently decided that I need to change my home-based business, because I have outgrown my space. Right now, I need to locate a physical location for my business, and I need the proper equipment to conduct my ?professional? classes. In addition, I need to expand my business, and I have no cash to pursue my venture. What I am looking for is a small business start up loan, preferably an unsecured business loan. I?ve been having problems getting a loan because I don?t have enough collateral. Can anyone offer me some guidance, advice, or even a reliable resource that will cater to a person in my situation?
By: Rob
on
Businesses of One
Since ?green? businesses are popping up left and right, I love that The Social Venture Network is holding a contest to reward business leaders of socially responsible companies! If you know a CEO or high-level person in such a company, please send this link to them: www.svn.org/imaginewhatsnext.
By: Charles
on
Going for Startup Funding?
What do you think of ITIL ? Current i am reading about this, and thinking of how to implement the config mgmt part of it with exchange, firewall, voip, cisco, win servers, vmware, etc. Any idea will be appreciated Regards, EH Chia Singapore http://www.jobscreation.com/optin3/TAF-Step1_3.html ...
By: EH Chia
on
What's Your Data Security Plan?
Agree there, as i found that with no deadlines i tend to work slower, with no push and also creating my web campaigns pretty much the same Regards, EH Chia Singapore http://www.jobscreation.com/optin3/TAF-Step1_3.html ...
By: EH Chia
on
Use Deadlines to Your Advantage
Very informative and knowledgeable article. Thanks.
By: Akber Kassam
on
Know Your Competition; Know Your Customers Even Better
Many business owners look at research on what consumers are doing. But that is so reactionary. To truly anticipate the next big trend, ask them what they want. Let me tell you, your customers are dieing to let you know what is on their mind. Whether it be a questionnaire you put near your cash box or an online survey, you will be surprised at the ideas they come up with, most not that hard to do. First step is asking the question. THEN you have to decide what to do with the information.
By: James
on
What Do Your Customers Want?
I appreciate your thinking here, but in the end, I still think that the cliche that "passion is the true mark of an entrepreneur" is true. No doubt, successful entrepreneurs must take initiative--but at the end of the day...Passion drives our willingess to take initiative. When times are tough and its not all fun...passion keeps the fire burning. Passion fuels initiative. Jeff www.northstarthinktank.typepad.com Jeff ...
By: Jeff Chavez
on
What Really Makes an Entrepreneur
Big customers are really alluring. You are right that they are also very demanding. It is not easy to meet their demand and please them. So think before what you pray for. It was a good article on small and big customers and their impact on business.
By: Razib Ahmed
on
Should You Go After Those Big Customers?
Mary, You're right concerning the number of small businesses that don't really think in terms of backup protection. The endless amount of issues and problems always tends to push it to the things-to-do-later list, and is not thought about until it's too late. It's good to be reminded about this critical issue.
By: Gary Bourgeault (thealphamarketer.com)
on
What If You Lose Critical Data?
I'm confident that there's a way to minimize your risks of loosing your money. I mean using franchise system. You'll got necessary experience from your franchisor. And there are additional pros that you could found in this topic at my blog: What moves franchises and revolutions? Anyway it is not a wayout for everybody.
By: Mousee
on
Improve Your Chances of Business Success
As far as being a business success goes "An eager market that has the means to buy what you are selling" is one of the major things missed by new and sometimes those that have been around awhile. Not too many test out the market to see if it exists. While business owners offering new products or services, many times just offer them as a trial, rather than at least doing a little market research first.
By:
on
Improve Your Chances of Business Success
As far as being a business success goes "An eager market that has the means to buy what you are selling" is one of the major things missed by new and sometimes those that have been around awhile. Not too many test out the market to see if it exists. While business owners offering new products or services, many times just offer them as a trial, rather than at least doing a little market research first.
By: Gary Bourgeault (managersrealm.com
on
Improve Your Chances of Business Success
Thanx for the tips!! Your ideas and suggestions are inspiring enough to start with a business and lead it successfully. Though to be self employed is not an easy task, it involves a lot of stress and mental pressure, but everythings seems quite easy with Pamela's wonderful advices.
By: Ben Bicais
on
Improve Your Chances of Business Success
Profit is the reward for risk bearing, since self employing is much riskier, you surely have worthy returns for it.
By: Jeremy
on
Myths about Self-Employment
I can relate to the one concerning the long hours that is mentioned. A lot of business owners say that it is one of the big mistakes they made when they started, not understanding the peak hours etc., of their businesses and staying open way beyond where it was profitable to.
By: Gary Bourgeault (managersrealm.com)
on
First Anniversary - Lessons Learned
Marry, I visited, information week and I read the article and I must say that it is a great one. Thank you very much for such a nice article. I enjoyed reading the Heather Armstrong and Del.icio.us story.
By: S.M.Mehdi Hassan
on
Entrepreneurs "by Accident"
We really have interest how people become successful, what reaches them at the top. I think this book will give answer to such questions and others as it deals with the lives and stories of the entrepreneurs. And many readers will find encouragement and courage to go ahead and learn many things from their lives and works.
By: Razib AHmed
on
Entrepreneurs "by Accident"
We really have interest how people become successful, what reaches them at the top. I think this book will give answer to such questions and others as it deals with the lives and stories of the entrepreneurs. And many readers will find encouragement and courage to go ahead and learn many things from their lives and works.
By: Razib AHmed
on
Entrepreneurs "by Accident"
We really have interest how people become successful, what reaches them at the top. I think this book will give answer to such questions and others as it deals with the lives and stories of the entrepreneurs. And many readers will find encouragement and courage to go ahead and learn many things from their lives and works.
By: Razib AHmed
on
Entrepreneurs "by Accident"
Thee is some great reading mentioned in this post. I love learning more about how people came to do what they do and how they develop in their lives. It is great reading of the success of others and we can learn from these books, stories and articles on how to be more successful not only in business but also in our perosnal lives. Karen Oates - 15 Minute Life Coach - Women, Be Your Own Life Skill Coach.
By: Karen Oates
on
Entrepreneurs "by Accident"
Sounds like his "dad" was never in business, nor met a payroll, much less had to keep suppliers happy with less than full payment of their invoices. The middle ground is something called a PLAN and BUDGET. Entreprenuerial style, intutition and risk taking allow spending more or less on plan/budget items. The goal is keep the cash flowing in a greater rate than out. This does not occur because of some business policy or philosophy, but by being smart.
By: Bottswood
on
Don't Overlook Unconventional Advice
Sounds like his "dad" was never in business, nor met a payroll, much less had to keep suppliers happy with less than full payment of their invoices. The middle ground is something called a PLAN and BUDGET. Entreprenuerial style, intutition and risk taking allow spending more or less on plan/budget items. The goal is keep the cash flowing in at a greater rate than out. This does not occur because of some business policy or philosophy, but by being smart.
By: Bottswood
on
Don't Overlook Unconventional Advice
Well said but unfortunately entrepreneurs are not rationale when comes to what they do not know. The real trick is to guide them to the reality that there are obstacles or processes they really can not "just do it themselves." This takes an outssiders patience and artful conversatons to gain the confidence and trust to allow the entrepreneur to say "I really don't know how to fix it." Big step!
By: Bottswood
on
Do What You Can -- Hire What You Can't
Are you perhaps "in your own way", as a friend of mine puts it? This is the right question. I remember reading recently that it is better to get something going with a good idea than to wait for a perfect one. When one really thinks of it, how can we even adapt and adjust if there isn't something started to respond to? Looking at the "upside" is one of the ways to motivate ourselves to get it going!
By: Gary Bourgeault (managersrealm.com)
on
Risking by Not Risking
Goals help you turn your small business dreams into realities. A dream starts with a feeling about why business ownership might be important to you and what interests or expertise you could fashion your business ideas around. Set and accomplish goals capable of taking you to the land of your dreams. Without goals your dreams will forever be stuck at the "fork in the road".
By: Don Osborne - The Profit Puzzle
on
Know Your Goals
Lesson Number One - if you borrow from yourself by using an existing credit line from a personal credit card, you are the banker. You must decide if your business idea is capable of generating enough cash flow and profits to make your loan payments. Demand as much from yourself in making a lending decision as any banker would. No matter who makes the loan to your business the same basics of loan decision should apply.
By: Don Osborne - The Profit Puzzle
on
Funding Your Business with Credit Cards - Lessons Learned
i personally don't have a credit card. i know myself and i know how i spend for both work and others -- i'd be drowning in debt if i had one of those.
By: nikki
on
Funding Your Business with Credit Cards - Lessons Learned
hmmm...interesting! i'll be incorporating a business next month and will certainly keep his dad's words in mind! thanks for this! :) ...
By: nikki
on
Don't Overlook Unconventional Advice
My boyfriend lived with his x-girlfriend for 10-yrs and he started his own business two years ago. he signed papers saying she could sign checks she did for about 2-months the quit. She was on nothing else does that make her part business owner cause she was able to sign the checks. they never had any accounts or anything else joint. Now she is trying to go after rights to his busniess. She filed common law marriage. Does she not have to be put on as owner #2 before she is part owner?
By: Brenda
on
Spouses as Business Partner Part #2 - Legal and Tax Considerations
It is really good test. I think it is very important that before begining your business you do research with your ideas and make sure that there is any chance of clicking. However, it is not like that tests will provide a very clear answer. The most important thing is believe in yourself and your love for the job.
By:
on
How Good Are Your Planning Assumptions?
A nice article and a nice idea!!! I really liked the story of the farmer. Competition whether in business or in school is healthy as long as it does not get nasty. Business requires competition because it encourages producers to invent better products with better service. If there was not any competition there would not be much research and development.
By: Razib Ahmed
on
When Competition Is Good
It is interesting that a lot of business owners fear having competitors nearby, when the big companies, of course, know that this is one of the best things for their businesses. The thought with small businesses inviting the same thing is a good one, it will create more traffic and bring in more customers. All small businesses should embrace this and be glad when the area they're in is full of their competitors.
By: Gary Bourgeault (managersrealm.com)
on
When Competition Is Good
Thanks for the tips! I myself am a planner and am finding that my partners and I have different ways of planning for our business endeavour. we'd have to talk again and find a common ground.
By: nikki
on
How Much Planning Should You Do?
Er, one caution about parttime employees.... Sometimes, in my experience (I' m a 46-year-old CPA), it's as much work to manage a part-time employee as a full time employee...
By: California LLC formation author & CPA
on
Hiring Part Time Employees
"O?Connor found it was far better to have three part-time employees who bring different skills to the business. ?It?s more flexible and I get three perspectives instead of one at any given time.? ---> i agree with this! aside from having a full-time job, i am a part-time employee myself. i also am planning to start my own business and am planning to hire part-timers - since part-time allows for more flexibility (for both employer and employee) and more input for less.
By: nikki
on
Hiring Part Time Employees
I wonder if this is really true... the part about spouses being partners for tax purposes. I think in community property states that a husband and wife have the choice... They can be treated as either a partnership or a sole proprietorship. I also recall that there are some good hints the IRS will let a married couple in a non-community property state be treated as a partnership or a sole proprietorship. (I think there's a revenue ruling that says this.) BTW, a related issue is whether a husband and wife who own an LLC (which by default is treated as partnership if there are two owners) can be treated as a sole proprietorship... Some tax practitioners think the "spouses as partnership" rules apply to multiple member LLCs where the only owners are two spouses. BTW, just so people know where I'm coming from on this, I'm a tax CPA in Seattle and have taught Golden Gate University's graduate tax class on LLCs and S Corporations. I've also written a bunch of do-it-yourself guides to LLC formation ... Oh, and if you use Quicken or QuickBooks you may have another books or two I've written, Quicken for Dummies and QuickBooks for Dummies Stephen L. Nelson, CPA ...
By: LLC formation author and adjunct tax professor
on
Spouses as Business Partner Part #2 - Legal and Tax Considerations
One other point I should have mentioned... There's a great tax loophole for sole proprietors who employe their spouses. While a sole proprietorship can't provide taxfree fringe benefits to him or herself, that proprietor can provide those benefits to employees and their families. Even if one of the employees is a spouse and the proprietor is included in the "family." This makes medical expenses (like insurance, and uncovered expenses) a deduction for both income tax purposes AND self-employment tax purposes. If someone wants to talk to their CPA about this, there's an old Revenue Ruling (basically a formalized decision from the IRS) that talks about this. And the Internal Revenue Code section that authorizes this sort of stuff is 105(b). (These two bits of info will let you communicate with a tax practitioner why this stuff is allowed." Stephen L. Nelson, CPA.
By: LLC formation author & adjunct tax professor
on
Spouses as Business Partner Part #2 - Legal and Tax Considerations
A very interesting topic for further discussion at various forums . I get new ideas from various articles to write for my forum . PLease see my article and offer your valued comments . http://www.indiantaxsolutions.com ...
By: Tarun Majumder
on
Spouses as Business Partners - Part #1
Mary, Congrats on your inaugural blog! Your assessment of solo vs partner is brilliant. This year is my 5th anniversary of founding Pacifica Group, a marketing practice made of 3 partners. I wrestled with solo vs partner and went the partner route because of one other consideration--credibility. We're winning more, better clients as a firm than I would have as a lone wolf. Thank you, Sridhar ...
By: Sridhar Ramanathan
on
Should You Go Solo or Partner?
Some very good points to consider in this article. I am a sole proprietor and this article gave me some good things to think about as my business grows. Thank you for the information.
By: Linda McGovern
on
Should You Go Solo or Partner?
What a great support! I am into the 3rd month of a home businesd after heading a department in government for 16 years!! Discipline and time managment are big obstacles, HELP!!!
By: Bernadette
on
Welcome to the First Year
I couldn't agree more with the article. As a business consultant, I strongly recommend that prospective business owners envision their business idea, including size, however they measure size. Then, the work begins of determining if the business is feasible at the level they envision. In determining the feasibility of the idea, the prospective owner researches the potential market and begins to understand what it will take to profitably service that market given the economic, competitive, technological, and other factors that influence it. The prospective owner also determines the skills and finances needed to fund the business at the level envisioned and to carry the business until it is generating sufficient cash flow. At any step in this process, the need for more talent or more financial strength will become apparent if the business owner is really doing objective research. As the article points out, it just does not make sense for someone to envision a really large businesses or one with multiple locations if that vision is not supported by sound research and backed by sufficient financial strength and human talent to make it a reality.
By: Vonelle Vanzant
on
How Large Will Your Business Be?
Well in all truth I think your missing the point here. Business plans should be dynamic and ever changing. They grow with the company and reflect changing values, markets and goals. They are not for the VC or the start up stage of your business, they should be seen as ongoing and a ?bench mark? for your eventual success on a road less traveled. If your goals aren't financially centered then this should be stated and punctuated in your business plan. If the size of the market changes, your goals change, or other dynamics such as resource availability change then your plan should not only have planned for its potential evolvement, but it should be dynamic enough that this issue is re addressed and solutions, put in place to lead you and your business in the right direction. If your idea of size and purpose change then by all means go back rewrite and reflect this in your business plan. Don't demean the one thing that could save most struggling businesses. As a customer service development consultant I insist on this document being updated including a section on customer and market analysis.
By: Tim Whelan
on
How Large Will Your Business Be?
Tim, we actually agree about business plans, and that will be another post (or two) another time. I don't say, Don't have one -- I do say, Don't let it prevent you from recognizing new growth opportunities just because they aren't in your plan. -Mary ...
By: Mary
on
How Large Will Your Business Be?
This looks like a great community spot for new business owners. Dave ...
By: Dave Loomis
on
Welcome to the First Year
I'm wondering what specific obstacles other people are running up against, and how they're dealing with them. Thanks, Helen ...
By: Helen
on
Welcome to the First Year
Looking forward to hearing more. Would love to hear about ways to launch small sales organizations effectively. (: ...
By: Alison
on
Welcome to the First Year
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