What Tax Forms Do I Need for My Small Business ? January 19, 2012

Running a business is complicated, and filing business taxes adds another level of challenge. Even the simplest one-person businesses typically need to file three additional forms with their federal returns, and typical small businesses will frequently have to generate even more paperwork, just to comply with the federal government’s requirements.
1040 Schedule C

• The basic reporting form for sole proprietorships and LLCs that are run by a sole proprietor is the “Profit or Loss From Business” form known as Schedule C to the Form 1040 individual income tax return. Schedule C allows you to report your business’ sales and expenses, break down your cost of goods sold and provide basic vehicle information, which could save you from having to additionally file Form 4562.

1040 Schedule SE

• If your business is profitable and operating as a pass-through entity, such as a sole proprietorship, S corporation, LLC or partnership, you will have to pay self-employment tax. Self-employment tax is the combination of your share and the employer’s share of FICA — tax for Social Security and Medicare. You compute and report this tax on Schedule SE to your 1040.

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10 Ways to get more business December 13, 2011

You bit the bullet. You set up a website because new prospects and existing customers kept asking you for your website address. Then, too, there were all those stories you kept hearing about small companies bringing in significant business through their web sites. So, you paid a web developer thousands of dollars to put your business on the web, or spent countless hours of your own time learning enough about the web and about html to put up the site yourself.

But your site’s been up a couple of months and you haven’t gotten a single sale you can trace to the website. What happened? What’s wrong? What do you need to do to make your website start bringing you business? Here are several tips that will help you fine tune your site to make it a more effective marketing tool.

Make sure your site looks professional
Take a hard, cold look at your site – or ask a friend who will be brutally honest to look at the site. Does it look professional? Are the graphics professional-quality and clear? Are the fonts, font sizes, and font colors used in a consistent way? Or does your site include design flaws like these that immediately mark it as an amateur production:

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By : Janet Addard

10 small-business trends to know about for 2012 November 22, 2011

As 2012 unfolds and small-business owners continue to face an anemic economy, knowing the trends that will reshape how you do business can give you a critical edge. Here are 10 top small-business trends for 2012 and beyond:

• Technology disruption accelerates: Web-based or “cloud” computing, mobile commerce and social-media marketing are three fast-growing mega trends that are reinforcing each other at the same time. The cost of software will drop dramatically as the same functions become available cheaper or even free online.

For example, a free online scheduling service just launched call GoBook (gosuite.gramercyone.com) that gives local businesses such as hair and nail salons, auto-repair shops, dance studios, personal trainers, health clubs and medical offices a new way to book appointments via the Web. GoBook also lets customers book appointments via Facebook or a mobile device.

• Segmentation picks up steam: As marketing dollars remain tight, and more small businesses move to digital, mobile, social media and other methods, targeting specific customer “segments” becomes both easier and more compelling. Small businesses should analyze existing customers as well as target markets to identify as precisely as possible those that are most profitable.

• More and more mobile: Ownership and usage of smartphones and other mobile devices is skyrocketing, and research firms have been stunned by how fast some small businesses have moved to tap into mobile commerce. Widespread adoption of mobile technology has occurred more rapidly than for any technology of the last 100 years, including radio, television and the Internet. Bottom line: Your business must be visible on mobile. Mobile searches on Google have quadrupled in the last two years alone. And despite tremendous growth, the upside remains huge.
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10 Signs You Shouldn’t Be a Small Business Owner November 8, 2011

Thinking about starting your own business? Take a moment to read the signs. While no single sign here guarantees failure, any one of them will certainly make success in business much more difficult than it already is. The good news, however, is even if you see yourself in this list, you can overcome any of these traits and rewrite your signs.

The essential requirement is to be honest with yourself. If you find that you’re nodding in agreement, step back and work on improving in those areas first, then tackle business ownership later.

1. You can’t make decisions

Making decisions doesn’t mean you need to make every single decision (that’s what we call micromanaging), that you have to deliberate for hours over the ones you do make (that’s what we call procrastinating), or that you have to make decisions following a certain procedure or managerial methodology. You do have to be able to make the call, one way or another, move that decision into action, and then deal with what happens as a result of that action, good or bad.

An indecisive leader wastes time trying to figure out which way the wind is blowing. Meanwhile, the rest of the world has passed by. In business, taking too long to make a decision on how to proceed means you lose the chance to proceed.

2. You won’t take responsibility

If you’re known among friends and family as the Master Excuse Maker, don’t open a business, at least not until you get a handle on being the one who doesn’t invent excuses but takes responsibility. The fun thing about being a business owner is that you get to be in charge; and the worst thing about being a business owner is that you have to be in charge—hence, the bottom line depends on you.

No matter whose fault a mistake is, as the head of your business, you have to own everything that goes on in your business, bad and good. An unhappy customer doesn’t want to hear about why it’s your employee’s fault. An unhappy investor doesn’t want to hear about why the economy didn’t turn out the way you expected it to. Learn to claim responsibility for what happens in your life before you jump into owning a business.

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By: Annie Mueller, Writer OPEN Forum

4 Ways To Generate Innovative Ideas Even With A Reluctant Team October 20, 2011

Brainstorming is one of the most commonly used methods of business innovation. But if you’ve ever tried to get a lively brainstorming session going with a reluctant group of people, you know how agonizing it can be.

Maybe the employees you’re trying to work with lack confidence about their ideas. Maybe they’re generally shy. Maybe one or two people dominate the group and eventually, other people stop bothering to contribute. Whatever the reason that your traditional brainstorming session is stalled, the following alternative brainstorming techniques can help encourage contributions from everyone involved.

1. Post-It notes

This can be a good technique to warm up a shy group or get people on a roll, and maybe even make the group comfortable enough to go to traditional brainstorming. Start with a large wall surface such as a whiteboard or a couple of flip-chart pages taped up next to each other. Distribute large Post-It notes and felt-tip pens to the group.

Once you’ve defined the problem you’re brainstorming about, have everyone silently write down as many ideas as they can think of, limiting it to one idea on each Post-It. Then post the ideas on the wall. Depending on the shyness level in the room, you may want to gather and post the notes yourself, or have each person post their ideas and read them aloud. As ideas get posted, they will likely generate more ideas. People can keep writing and creating Post-Its during the posting process. What’s nice about this idea is the Post-It format lets you mix and recombine ideas as you discuss them.

By: Anita Campbell- Founder, Small Business Trends

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Buying a Business September 15, 2011

Some people buy businesses through a business broker. Other common methods of acquiring a business are through newspaper ads, realtors, suggestions from your accountant or lawyer, and friends or relatives.

The first major consideration of buying a business is to verify that the business is performing as represented. I prefer to obtain three years of income tax returns. Owners are less likely to overstate taxable income than on a financial statement (although I have seen tax returns cleverly misstated). Also, the tax return is more likely to be accurate and properly put together than an in-house financial statement that the non-accountant business owner did himself or herself. I suggest looking at three years, since the most recent year may only be an aberration. Trends are difficult to fake, and show you not only the current situation, but in which direction the business is headed.

Since revenue is the biggest problem to document, you may want to total the monthly sales tax reports and compare that total to the revenue on the income tax return. Ask the seller about any discrepancies. Also inquire about major expenses, such as whether there is a lease, or if the rent is month-to-month.

Once you have reached a comfort level that the business is performing as represented, your focus should change to analyzing what cash flow you can extract to pay the acquisition loan payments and (hopefully) provide something for you to live on. Do not expect to earn enough immediately to fully fund your living expenses. Most of the profit for the first couple years will go to loan payments. It is up to you to cut wasteful expenses and aggressively promote the business to build revenues. During the first few months you should probably not make any changes until you fully understand how the business works and what the consequences of any change would be. So you should plan on having six months of living expenses set aside in either savings or borrowing power during the start-up period.

Net profit may not be what the tax return says. Remember that the seller’s goal is to cut taxes, not show a high profit. Therefore you should add back any owner salary (if a corporation), family salaries (unless they truly perform meaningful work that will need to be replaced), fringe benefits such as a car, health, life and disability insurance for the owner and family, retirement plan contributions, auto expense (reimbursements to owners), travel, entertainment and meals that are not part of a direct sales effort, and any hobbies or side activities that the seller is running through the business which have nothing to do with operating it.

How to Start a Mobile Food Truck Business August 2, 2011

The mobile food industry has seen a massive resurgence, especially in big urban aeas such as Los Angelas, New York, Washington D.C., Miami and San Francisco.  From their kitchens-on wheels, they’re serving everything from creme brulee to escargots to gourmet cupcakes to cusines from all over the world,  And customers are gobbling it up.

The new breed of mobile trucks sport vibrant colors and branding imagery.  They are also tech and social media savvy, often using Twitter and Facebook to announce their locations.  Many are owned and run by highly trained chefs and well-known restauranteurs.  Restaurant owners looking for additional sales see the mobile food truck as an opportunity to sell food without paying rent.  Others see it as their way to enter the food business, hoping eventuall to open their own restaurant.  If you are looking to start your own mobile food truck business, here are 10 things to consider:

1.  Government Regulation.  The food carts biggest challenge is the myriad (even outdated) government regulations, licenses, permit requirements and zoning rules.  Some states have rules where the trucks can park, how long can they stary in a certain area, and even the size of the truck.  Plus, the trucks nees to meet the local health department specifications and food preparation rules.  Some sates regulate where the trucks should be deposited when not on duty, mandating food truck owners to park their trucks only in approved commisary locations.

2. Getting Permit and Licenses.  Depending on where you are located, getting the permit you need to operate a food truck business may be tough.  In New York City, for example, there is a cap in the number of permits the locak government can issue and the waiting list for new permits can be as long as 10-15 years.  Hence, some food truck owners buy their Mobile Food Vendor License in the black market, driving the cost up ever further.  In the District of Columbia, mobile food trucks need to pay for a license, inspections, and a one time $1,500 sales tax fee.

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Branding Your Business July 26, 2011

If you think only big corporate names need to think about things like brand names, think again. Your brand says a lot about you and your business, and that’s as true for a one person home- based operation as it is for a multinational conglomerate. In this article we look at how creating a strong brand for your business can help you set yourself apart from the pack and lay the right foundation for the future growth of your business.

WHAT IS A BRAND?

Your brand is more than just the logo on your letterhead and business cards or your business name. It is your corporate identity. An effective brand tells the world who you are, what you do and how you do it, while at the same time establishing your relevance to and credibility with your prospective customers.

Your brand is also something more ethereal. It is how your business is perceived by its customers. If your brand has a high perceived value, you enjoy many advantages over your competition, especially when it comes to pricing. Why do you think people are prepared to pay stupid money for items of clothing with the initials “CK” on them? Perceived value. Perceived value as a result of very effective brand promotion resulting in very high brand awareness.

Now, I’m not saying we all need to rush out and start creating brands that are going to be recognized the world over. Most of us simply don’t have the time or other resources necessary. What I am suggesting, however, is that it is possible for your brand to dominate your niche.

WHY DO I NEED TO CREATE MY OWN BRAND?

=> Differentiation

We touched on this in the previous section when we looked at what a brand is and how it can be used to increase the perceived value of your products and services. The main reason for creating your own brand is to differentiate yourself from your competition. New websites are a dime a dozen. So are home-based businesses. You need to constantly be looking for ways to set yourself apart from your competition. Your brand can do that for you.

=> More Effective, Efficient Marketing

Another good reason for creating your own brand is to make your sales force (even if that’s a sales force of one – you) more effective and efficient.

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By: Elena Fawkner

10 Tips For Negotiating with Vendors in a Down Economy July 18, 2011

Let’s face it. Up to now vendors have had the home-court advantage. After all, their job is to sell you services — and they do it every day. You may be many things, but chances are you’re not a professional buyer. In the back-and-forth with vendors you’ve probably lost a few rounds.

These days, however, the ball is back in your court. With the economy in low gear, many vendors are eager to relax the hard sell and play nice. Despite corporate downsizing, companies are paying on average 10 percent less for the same vendor services, according to Howard Lackow, senior vice president of the Outsourcing Institute, a professional organization and consulting firm based in Jericho, N.Y. Especially in areas where human resources are involved –such as systems integration and application development– it’s not uncommon to negotiate deals for 20 percent off their price before the downturn.

The advantage may have shifted to your side of the court, but that doesn’t mean you should smash every serve into oblivion. After all, you still have to collaborate if you want your project to run smoothly, and you don’t want to create an adversarial relationship from the get-go.

A little savvy can help polish your volley when it comes to negotiating with vendors. Knowledge of fundamentals –and a straight face– is the hallmark of an ace.

• 1. Know the market. The only way to settle on fair price and service quality targets is to understand the market for that particular service. If the market constricts, your leverage goes up. If you don’t understand the market, hire a reputable, experienced consultant –you’ll save money in the long run.
• 2. Ask for competitive bids. In addition to getting your purchasing department on board, a request for proposal (RFP) is the only way to ascertain the current market price — and play off two competing vendors. While you don’t have to reveal prices, you can suggest that one is high in a given area and may want to sharpen his pencil.
• 3. Know your target price. In many cases, the best way to compare vendors –and to get the most for your money– is to use a unit-price model in your negotiations, says Jim Pearse, an executive consultant specializing in sourcing issues with Compass America in Oak Brook, Ill. For example, if your internal Help Desk cost is $24.50 per call, and top-performing Help Desks handle a call for $15.50, you should expect the vendor to aim for the best price of $15.50, a 35 percent improvement. “Of course if your initial cost is $24.50, you can’t expect a 35 percent improvement overnight,” Pearse admits. “But the point is you shouldn’t just settle for a 15% improvement as an ultimate goal.”

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By : Eva Marer