Your Independence Solution
844-884-3766
.
.

Archive for the Business Tips Category

The Pointillism Maserati

 

Every action that we take either enriches us or impoverishes us.

When we have perfect clarity about which is which, we’ll have the keys to the vault.

Expenses

I was driving through downtown Naples on a beautiful October Saturday. You have probably heard – and rightly so – what a beautiful city Naples is, and certainly there is a lot of wealth here, in the city itself and on lovely Marco Island.

On U.S. 41, the main north-south road connecting the main cities in the area, there are plenty of luxury car dealerships. I don’t mean the Honda Acura. I mean Maserati, Aston Martin, Tesla.

That’s fine.

But these are, for most people, expenses. Most people will not leverage a vehicle into a (spoiler alert!) ROI.

In the heart of downtown Naples is the difference between spending 6 figures to enrich your life or spending 6 figures to impoverish it. Just where U.S. 41 turns to the southeast is a cluster of establishments that spells out that difference in 2 words:

art galleries.

Art appreciates in value. Most vehicles do not. In a given transaction, one type of disbursement is an expense whereas one is an investment.

But while the dealerships are all up and down U.S. 41, you have to go to one special place for those art galleries.

What are the questions you’re asking yourself right now?

 

After the Storm

 

Be careful of working with contractors and repair professionals who might be overwhelmed with business after a natural disaster.
Not everyone has a solid business model; many small business owners act without planning and then get into trouble. There are too many entrepreneurs who say “yes” to too much work, they don’t manage their receivables, they don’t forecast and plan their cash inflows and outflows…
…they’re paying for labor and materials on time but the insurance companies or other customers are slow to pay them…
…and then *your* project stops without warning because this has multiplied in a dramatic business uptick and they’re insolvent.
There’s a name for this. It’s called “growing themselves out of business.”
Business owners aren’t going to tell you about this. So when you choose someone, do it on a warm referral, not just based on their quality of their work and the timeliness with which they keep their promises, but also how solid the business itself is.
If YOU’RE the owner of business with a sudden uptick, share your own successful business model with potential customers. Mention your consistent stream of employee candidates who want to work for you, your automated hiring and vetting process for employees, your diversified supply chain, your sparkling accounting records and low/no receivables that make your cash flows work, mention that you get a good night’s sleep daily because you have an amazing administrative team, not just the people on the front lines providing the services. (And if you don’t have these, you know how to reach us…don’t you??)
They’re shopping around. You know they are. So share with them the above warnings. Educate them as to what to watch out for with others in the industry, build credibility while you’re doing so, and position you own business as the one to trust.

When Should I Outsource My Bookkeeping?

You say that you’re not ready to outsource bookkeeping. I’m going to challenge you to get there. Here’s how:
[1] Become a leader in your own company
Make sure you get trained in how to delegate your bookkeeping, not abdicate it. That’s how microbusinesses go out of business. No oversight, and their money is gone, no legal fund either to pursue it. Just gone. And even if there’s no theft, what’s the point of bookkeeping if you’re not doing anything with the information? Delegate, and interpret the reports to make a decision (see #3 below for more on that).
[2] Get an ROI
If the money isn’t there yet to pay for it, that’s because you don’t have an engine to turn your time into dollars. You will be ready to get your bookkeeping outsourced when you are aware of how much more time will become available to you and how much profit you can reliably generate with that extra time.
[3] Learn how to turn your data into cash
Get trained on how to turn your accounting information into cash. Why bother with bookkeeping at all? There’s no point at all…unless you’re prepared to learn how to make money or save money (or both) with the information that you get from your bookkeeping records.
Until all 3 of the above are in place, don’t bother with your bookkeeping and don’t fret about outsourcing. Take it off your plate. Then make your time more financially valuable. Then get trained in how to monetize your accounting information. Then get trained. in how to delegate. Then find an expert.

Is It Profitable to Blog?

One of the many online marketing options available for businesses is blogging. A blog can act as a company’s daily newspaper, letting customers and followers know the latest news about what’s happening. It can also be a wonderful revenue-generator.

As long as the content of your blog is relevant to your readers, you can post on a wide variety of topics. You might want to let clients know about an upcoming sale, a new employee, or a tip related to a product or service of yours.

Some businesses make a separate revenue stream out of blogging. The most profitable blog today is the Huffington Post. Revenue from blogging can be earned in many ways:

  • By selling ad space to people who want to get their products in front of people who read your blog
  • From sponsors
  • By holding events your readers attend
  • From commissions from the sale of products on your site
  • By creating products and services such as membership sites which allow paid access to your resources

Making money from blogging through one of these revenue streams takes work. Not only do you have to find or create content, you’ll need to attract readers too.

You can also simply use your blog to generate a following for your products and services. The right content can improve customer service, educate customers on your products which leads to better client retention, or inform them of the benefits of your products during your sales cycle.

If you’re not a writer, there are plenty of freelance writers available that you can hire to create your blog posts.  You can also curate articles, meaning you can find existing articles and ask the author if you can re-publish theirs.

Creating a blog is easy with software like WordPress or apps like Blogger.com WordPress.com, and Wix.com, and all of these solutions are free.

Think about how a blog can impact your business for the better.

Could Your Business Survive a Disaster?

As business owners, we want to remain optimistic about our business’s future. But life can happen, and we need to be prepared.  A good business owner thinks about all the risks to their business and has a plan in place to reduce or eliminate them.  In 2017, we’ve already had floods in the Midwest and California, a healthy dose of tornadoes, and an ice storm earlier in the year.  And those are just the weather disasters. Are you ready?

In 2015, Nationwide ran a survey that revealed that three out of four small business do not have a disaster plan.  The same survey noted that 52 percent of small business owners thought it would take three months to recover from a disaster.

The most common solution is to create two plans:

  • A disaster recovery plan, which details the steps needed to recover the business from a catastrophic loss
  • A business continuity plan, which details the steps needed to keep the business running in case of a major loss, such as a loss of electricity, location, or key personnel

There’s a lot of help online to help you create your plan. A few of the major items that should be covered include:

  • Employee safety: you’ll need an evacuation plan in case of a disaster that is life- or health-threatening.
  • Communication plan: how will you reach employees in an emergency?
  • Electricity contingency: will you need to access a generator?
  • Internet contingency: can your business survive without the internet for long periods of time, or will you need to find a way to get connected?
  • Location contingency: if your worksite is inoperable, do employees have another place to report to?
  • Employee roles: who will carry out the plan?
  • Private data: how will you safeguard private company and customer data?
  • Systems: do you have an inventory of hardware and software, including vendor technical support contacts? How will you prioritize which system to get back up first? Do you have agreements with vendors who can come to your aid quickly?

Creating a disaster recovery plan can be the lowest priority item on your to-do list as a business owner – until it isn’t.  If you have a lot to lose, then consider spending some time on a plan to give you peace of mind.

The Power of Influencer Marketing

One of the hottest buzzwords in marketing this year is influencer marketing. Influencer marketing uses key people in thought leadership positions to spread the word about your brand.  These people may be paid or unpaid spokespersons for your brands, products, and services.

The profitable thing about influencer marketing is the leverage.  Instead of marketing or selling to one person at a time, you are marketing to key leaders with followings who can influence many people at once.

Influencer marketing varies by industry; here are some common examples:

  • Locating photos of your product already on social media and reaching out to those people to do more
  • Hiring a social media expert with a large following to talk about your clothing line
  • Having a prominent lifestyle blogger post a photograph containing your juice product
  • Starting a referral program for a makeup company so “regular” women will spread the word

The common theme to all of the above examples is finding people who have a huge number of followers that just happen to be your ideal customers.

To take advantage of this marketing method, ask yourself who is influential in your industry that has the ear and respect of your customer base. How could you partner with them so it’s a win for you, them, and their following?  You may or may not need to compensate them, depending on their revenue model.

There are plenty of apps to help you locate influencers relevant to you. A favorite is Ninja Outreach at ninjaoutreach.com.

Try reaching out to influencers to leverage your existing marketing and make your marketing dollars go farther.

Ready

contributed by Jaime Campbell, CPA, MBA, CGMA, CTT, MCT

 

 

You started your business with a vision.

You thought.

You worked.

You inspired.

You produced.

Sometimes, you slept.

 

You planned.

You hired.

You executed.

You delighted.

Sometimes, you cheered.

 

You strategized.

You managed.

You invented.

You chose.

Sometimes, you laughed.

 

You are growing.

You feel freedom calling

And you feel the squeeze

The bottlenecks

You hear your legacy calling

And you hear the competing voices

Of overwhelm

Of not-fast-enough

Of why-not instead of why-yes

Of not-enough instead of here’s-how

 

Join the community

Join the circle

Join the visionaries

The leaders

The possibilitarians

Across every century

Join the pathmakers

Welcoming your creation

Into creation

 

Get clarity

Get it real

Get your team

Get your legacy

What Is Reasonable Compensation?

For small businesses formed as an S Corporation and with plenty of profits, reasonable compensation is a term you may want to be familiar with.

Many small businesses have organized as an S Corporation form of entity.  In many cases, the S Corp election allows a business owner to save money on self-employment taxes, especially if they are operating as a sole proprietor. S Corp profits, or distributions, are not subject to payroll taxes.

If you are a business owner taking a salary and contributing substantially to the operations of the business, you may think that you should just take the distributions and forget the salary.  After all, think how much you would save in payroll taxes.  But this has already been tried and shot down by the IRS in the courts.  And this is where the term reasonable compensation comes in.

The IRS requires that business owners that perform a substantial contribution to the business be paid a salary according to a number of factors.  This is called reasonable compensation. You can’t pay yourself below market and take a large amount in distributions.

The IRS has issued a fact sheet that describes the guidelines that can be used to determine reasonable compensation. They include employee training, experience, duties, time spent, history of distributions, bonuses, and many other factors.

There are also reasonable compensation ramifications for C Corporations as well.

If reasonable compensation is an issue or concern for your business, please feel free to reach out and let us know how we can help.

So You Think You Can Scale (Part 2 of 2)

(6) Set up team-based communication systems and share information freely with your team leaders.
You heard me. I said team leaders, not team. Even if you think you don’t have enough people to have team leaders, let this sentence be the last time in your business life that you think that.

You relate differently with your team when you recognize that they’ll be leading the next people you hire:
· You’ll train them on your decision-making frameworks, not just give them your decision. You’ll give them resources, not just answers.
· You’ll make sure that their compensation plan aligns with being and becoming a leader.
· You’ll be crystal clear about where they need to follow your lead to the letter and where they have the freedom to create.

(7) Make your calendar strategically reflect reality.
Huh?
There are five classes of activities that fill the life, and therefore the calendar, of every successful business leader. Everything, yes everything, fulfills one of these functions:
· Administrative
· Sales
· Marketing
· Operations
· Personal

Use your calendaring system to block out all of the appointments and classes, and assign each class a color.

If your inner voice is saying, “I don’t have time for that!” then I assert that you’d rather be busy than wealthy. Go get a job and beef up your volunteering. You’ll be happier.
If your inner voice is saying, “I do three or four of these in any 15-minute block!” then I assert that you’re letting other people, each person with a separate set of individual priorities, dictate how you live your life. Whose organization is this, again? Whose life is this, again?

It’s time to design your time to scale.

That means designing your schedule.
That means grouping similar activity classes.
That means creating expectations with others so every block begins and ends on time.
That means reviewing your weekly calendar at a 10,000-foot level to make sure each color is represented in alignment with a scaling organization.

You’ll need to do some research that, or work with a consultant, if you don’t already know what the Scaling Palette needs to look like for your industry, business life cycle stage, and goals.

(8) What is your favorite technique for growing your organization without your life getting busier? Write it in the comments below.

Relocating brought unexpected benefits

Relocating brought unexpected benefits

This month we moved from Rock Hill, South Carolina, to Naples, Florida.  Our business had reached a growth milestone (thanks to our team, clients, referral sources, vendors, and networking partners) and it was the perfect time to create a fresh start in the location of our dreams.

The moving process allowed us to make improvements we hadn’t anticipated. We were able to redesign our workspace for greater efficiency, and, yes, even greater elegance. We were also able to redesign our schedule for greater balance (hello, sunsets!). And…we finally scanned our backlog of paper (remember that?) and developed a process that prevents future backlogs. The moving process also gave us time to take a step back and think about communicating our excitement about this journey with our network.

Whether by design or by chance, a change in your day-to-day work life can help you initiate other changes that can have far-reaching positive impact. Ours was a move to sunny Florida that kicked off a process of sorting and streamlining. What shifts have taken you or your organization by surprise? Have you planned changes that didn’t turn out the way you anticipated? No matter the impetus, a break in the status quo – whether it comes in the form of a moving van or a burned-out hard drive – may be an opportunity for the kind of reinvention that takes you and your organization to the next level.

Has something happened that created an a-ha or an uh-oh break in your flow? What opportunity are you creating as a result?

Comment below and then download! Top 10 Overhauls You’ve Been Avoiding
Page 1 of 1012345...10...Last »

Contact Us

CFO and controller services for small and mid-sized businesses in Naples, FL as well as throughout the U.S.

www.tieroneservices.net

844-884-3766 | david@tieroneservices.net

Connect with Us

ZenDesk Chat