tag:blogger.com,1999:blog-19201816831163840042020-01-21T10:55:34.098-08:00EntrepreneurAdviceBeth and Susanhttp://www.blogger.com/profile/04404105949851713844noreply@blogger.comBlogger214125tag:blogger.com,1999:blog-1920181683116384004.post-3729268270649563692017-03-16T10:35:00.000-07:002017-03-16T10:35:25.246-07:00Set Your Mind On SuccessI am known as someone who gets things done. This trait is what has enabled me to be successful in my corporate career, to run a successful business of my own, and to help others to do the same in my role as a trusted Business Advisor and outsourced CFO. So what are some of the strategies that I use to get things done? There is nothing new here that you haven't heard before, but these are all things that you can put into play in your own life.<br /><br />1. Set Your Mind On Success. Envision what "successful" means to you. Create a vision board if you find that helpful. Picture yourself as your successful version of you. I believe in the power of positive thinking, in the idea that &nbsp;you can create your own reality if only you can envision it. Believe it or not, I sometimes sit in my car before a client meeting and envision myself listening well and making meaningful, thoughtful contributions.<br /><br />2. Set a plan. Set a goal for the year, then break that down into smaller parts. What is your plan for the month? What do you need to accomplish to reach your success? What do you need to accomplish this week in order to stay on track? And then finally, what is your plan for today? Write these goals and plans down. Publicize them. Tell other people. Let others help you to stay accountable. My friends and coworkers think that I share a lot about myself, but doing so helps me to stay true to my goals. If others know what I am trying to accomplish then it motivates me to succeed!<br /><br />3. Break large problems or projects into manageable pieces. This, I have learned, is a natural gift that I have and what makes me a good problem solver and puzzler, but it is something I believe that everyone can train themselves to do. In fact, I may have learned this in my younger years as a pianist because in order to learn large bodies of music you must break them down into smaller segments. Once you see a project as a sum of pieces, you do not need as much available time in one sitting to accomplish one part of the project and thus keep yourself moving forward to completion. I find that people who have not mastered this skill often procrastinate because they do not know where to start and do not feel they have enough time at the moment to complete the entire job.<br /><div><br /></div>4. Make lists. I keep most of my lists electronically these days and I have a lot of them. To Do lists by each client. A To Do list for my own company (yes, I need to remember to work on my own company too!). A To Do list for home tasks. Various shopping lists. Lists of books that I want to read, movies that I want to watch, places that I want to travel to. Keeping lists helps me to clear my mind of having to constantly remember and acts as a reminder of what I am trying to accomplish.<br /><br />5. Prioritize. It is not enough to just keep lists. You must look at them and prioritize. In my constant effort to stay balanced, I make an attempt to accomplish at least 1 home/personal task from my list each day and 1 connection with family or friends. When working on my client work, I prioritize based on deadlines and also on what will make the most impact to their businesses. Sometimes a task is not necessarily my highest priority personally, but it is something that needs to be accomplished so that others can keep moving forward in their jobs and so that type of task moves up in priority.<br /><br />6. Do a priority task FIRST. It is easy (and in fact quite pleasant) to start your day reading a bit, sifting through email, doing some mundane tasks, only to find that you have just blown through an unproductive hour. On my most successful days, I take the bull by the horn and force myself to start with my highest priority job. And then continue at it, if at all possible barring the inevitable interruptions, until it is done. On a personal note, I have been getting up and exercising early in the morning so that it is done. My daughter who is in her 3rd year of medical school tells me she is starting her day with getting through a certain number of board review questions before she heads to the hospital so that she is sure to get them done. Completing important, high priority tasks first builds a momentum that will continue to propel you forward through your day.<br /><br /><br />Beth and Susanhttp://www.blogger.com/profile/04404105949851713844noreply@blogger.com1tag:blogger.com,1999:blog-1920181683116384004.post-50267194291921706392016-04-20T12:47:00.000-07:002016-04-20T12:47:16.825-07:00What small business owners struggle with: getting everything doneIt is often said that small business owners wear many hats. &nbsp;This is usually true, especially during the early stages of a business. &nbsp;While it is a good idea to keep costs down during the start-up phase of a business, what many entrepreneurs fail to realize is that there isn't enough time in the day to do it all themselves. &nbsp;I taught a class on entrepreneurship at our local technical college which walked the participants through the process of creating a business plan. &nbsp;One woman planned to open a small coffee shop and hoped to do it all herself! &nbsp;I had her estimate the time it would take to make the coffee, bake the pastries, clean the facility, do the bookkeeping, make the bank deposits, buy the groceries/supplies..... &nbsp;She soon realized that one person could not do it all. &nbsp;She had to build employees into the business plan.<br /><br />Employees will cut down on the time a business owner has to spend on the task the employees will be handling <i>once</i> they are trained. &nbsp;Notice the italics! The process of hiring and training employees takes time and a smart business owner won't rush this. &nbsp;Employees who are a good fit for the job and are well trained in the tasks assigned to them will help a business grow and prosper. &nbsp;Employees who are hired with little thought as to their fit in the company environment and are not trained properly can create chaos and frustration for both customers and the business owner.<br /><br />Employees aren't the only solution to not having enough time in the day for the small business owner. &nbsp;Using outsourced service providers can free up time and allow the entrepreneur to concentrate on income generating tasks and areas which require the owner's expertise. &nbsp;Just like hiring employees, taking the time to find the right service provider is the key to successful outsourcing.<br /><br />Using a calendar is a great way to stay on track. &nbsp;Block in time for all the key tasks which need to be accomplished and try to stick to the "appointments" with yourself. &nbsp;Make sure you make tax deposits/payments and filings a top priority as missing key deadlines can be very costly. <br /><br />The variety of tasks a small business owner tackles is one of the things many people enjoy about being an entrepreneur. &nbsp;The key to being a successful entrepreneur is knowing when it is time to delegate some of those tasks! E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com0tag:blogger.com,1999:blog-1920181683116384004.post-20869911976470142832016-04-08T08:25:00.000-07:002016-04-08T08:25:47.599-07:00What do small business owners struggle with: MarketingMany small business owners think marketing means advertising, but it really encompasses so much more. &nbsp;Marketing determines how a business will promote, price, package and distribute its products or services. &nbsp;Advertising is the media used to promote a product, service or event.<div><br /></div><div>Taking the time to create a marketing plan before a business is launched is vital to the success of a start-up. &nbsp;Keeping the plan up-to-date is just as important. &nbsp;Many entrepreneurs try to save money when launching their business and try to create the marketing plan themselves. an expert is suggested but make sure to take the time to find the right marketing expert for your business. &nbsp;Ask lots of questions and get a firm quote. &nbsp;Developing a comprehensive brand at the outset is worth the money and can make a real difference in the success of the start-up. &nbsp;</div><div><br /></div><div>Once the marketing plan is set, the business owner may be able to execute the plan themselves. &nbsp;Having the expert review the results with the business owner once a year is a good idea and allows for the refining and updating of the plan based on the results of the previous period. &nbsp;</div><div><br /></div><div>There is a great deal of advertising that can be done at a low price. &nbsp;Facebook and LinkedIn ads can be targeted to a region or demographic and you can set budgets to keep the costs under control. &nbsp;A marketing expert can help the business owner determine what their target audience is and what the best way is to reach them. &nbsp;Many companies don't need to advertise on the radio or television or with a billboard, which are all costly. &nbsp;They may been necessary, but it is important to make sure before the money is spent. &nbsp;Having an outside party, like a marketing expert, give advise versus the sales rep. for the television or radio station will prevent the business from spending money on ads which don't reach their audience or are more costly than they need.</div><div><br /></div><div>A small business can have the greatest product or service out there, but if buyers aren't aware of the company, it can't sell to them. &nbsp;Unless the entrepreneur has a good background in marketing, it is a good idea to let an expert get you started right.&nbsp;</div>E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com3tag:blogger.com,1999:blog-1920181683116384004.post-1977958283906381252016-04-01T12:26:00.002-07:002016-04-01T12:26:38.153-07:00What do small business owners struggle with: dealing with employeesOne of my clients once remarked that employees are a necessary evil! &nbsp;While most employees are not evil, dealing with employment laws and payroll taxes is a struggle for many small business owners.<br /><br />How does an entrepreneur deal with employment issues if they don't have a human resources person? &nbsp;Many of the payroll processors not only help with processing payroll and filing/paying payroll taxes but also provide HR services. &nbsp;The following is a short list of companies providing payroll and HR services:<br /><ol><li>ADP &nbsp;</li><li>BenefitMall</li><li>Big Fish Payroll Services</li><li>Ceridian</li><li>Gusto</li><li>Namely</li><li>Operations Inc</li><li>Patriot Software</li><li>Paycor</li><li>SurePayroll</li><li>TriNet</li></ol><div>In addition, the following companies provide just human resources services so if you are happy with your current method of dealing with payroll and payroll taxes, then this list will be of interest to you:</div><div><ol><li>Jumpstart: HR</li><li>MMChr</li><li>Namely</li><li>ProHR+</li></ol><div>We always recommend new business owners hire someone to get them started on the employer road. &nbsp;Making sure you understand employment laws and complying with payroll tax laws is important to avoid penalties and interest charges. &nbsp;Hiring an attorney to review employment and non-compete contracts, if they are necessary to your business, is a must. &nbsp;Once a business is up and running as an employer, they may be able to manage the processing of payroll and filing of payroll taxes on their own, but paying for expertise at the outset is the best way to avoid headaches. &nbsp;</div></div><div><br /></div><div>Most entrepreneurs are required to handle a multitude of tasks, but knowing when to outsource and when to pay for expertise can make managing your small business easier.</div>E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com1tag:blogger.com,1999:blog-1920181683116384004.post-30706257823045905292016-03-22T09:43:00.000-07:002016-03-22T09:43:47.110-07:00What do small business owners struggle with: complying with regulations and lawsOne thing most small business owners must deal with is the need to wear many hats when running their business. &nbsp;It can be tiring and worrisome to try and manage all the different tasks without the necessary skills or training.<br /><br />One way entrepreneurs can reduce the strain is to take advantage of the resources available to small businesses. &nbsp;Their local SBDC (Small Business Development Center), the SBA (Small Business Administration) and their local SCORE office are the best sources of free or low cost assistance. &nbsp;Their experts can point a small business owner in the right direction when dealing with the myriad of laws and regulations a company may need to comply with. &nbsp;Employment laws alone keep many small business owners from hiring needed employees. &nbsp;Sitting down with an expert from one of these resources can alleviate many of the concerns and enable the entrepreneur to take the necessary steps to becoming a successful and compliant employer.<br /><br />Another way a small business owner can insure compliance with regulations is to use the expertise of an outsourced service provider like an accountant, an attorney or a human resources expert. &nbsp;Using an expert such as this can help the business get set up correctly at the start and trained to continue compliance with employment, sales or other regulations. &nbsp;Using an outsourced expert will give the business the skill set necessary to insure compliance without the ongoing cost of hiring an employee to handle the tasks.<br /><br />The SBDC, SBA and SCORE offices often have local experts they can recommend to small business owners so if they exhaust the free resources, they have an outsourced expert they can hire. The following links can assist you in finding the appropriate resources in the State of Wisconsin. &nbsp;If you are in another state, just search for the resources with your state's name tagged on!<br /><br />SBDC: <a href="http://www.wisconsinsbdc.org/" style="background-color: #38761d;">www.wisconsinsbdc.org</a><br /><br />SBA: <span style="background-color: #38761d;"><a href="http://www.sba.gov/" target="_blank">www.sba.gov</a></span><br /><br />SCORE: <a href="http://www.score.org/" style="background-color: #274e13;">www.score.org</a><br /><br />Don't let the fear of regulatory compliance keep you from growing your small business. &nbsp;Conversely, don't bury your head and avoid the steps needed to insure compliance. &nbsp;The government takes employment issues very seriously so calling people contractors to avoid employment taxes is not the correct tactic to take. &nbsp;Find an expert to help you manage the task of following all relevant laws and regulations for your business.<br /><br /><br />E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com0tag:blogger.com,1999:blog-1920181683116384004.post-91187445360458035252016-03-10T15:00:00.000-08:002016-03-10T15:00:51.228-08:00What do small business owners struggle with: finding the right attorney or accountantThe success of a small business is dependent on many things with finding the right service providers being one key. &nbsp;Here are a few things to consider when selecting an attorney and accountant for your business.<br /><br />What type of work does the provider specialize in? &nbsp;An attorney who works mainly on divorces or other litigation may not be the best choice to help you with contracts and employment issues. &nbsp;A big CPA firm will provide you with all the advice and services you need, but if the billing rates are so high that you hesitate to ask the question, then that is not the right accountant for your company. &nbsp;Asking what kinds of business experience the provider has is a good start as well as what specific industries or types of businesses they have experience with. &nbsp;If you are a small manufacturer, finding an accountant who has experience with manufacturing will be much more helpful than one who only works with retailers and service providers. &nbsp;You will want someone with an understanding of operations and margins and cash flow to assist you with running your enterprise. &nbsp;If your business will have patents or copyrights, you will want an attorney with experience in those matters. &nbsp;Asking for references is another good idea so you can talk directly with other clients of the accountant or attorney.<br /><br />What rates does the provider charge? As stated earlier, if the rates are at an uncomfortable level for you, then you may be hesitant to make use of the accountant or attorney. <br /><br />Are you comfortable with the provider? &nbsp;You need to be able to talk with your attorney or accountant and feel like they are listening to you and understanding your concerns. &nbsp;You don't want someone who doesn't take the time to hear all your concerns or ideas or who speaks condescendingly to you when responding to questions. &nbsp;Take the time to talk with a potential accountant or attorney long enough to determine if you will feel comfortable with him/her. &nbsp;If they are not interested in meeting with you as a potential client, then you know he/she isn't the right person for you.<br /><br />You may not need to use the services of an attorney or accountant frequently, but you will definitely get better results if you do your homework ahead of time and pick the right one. &nbsp;Check with your local SCORE chapter or Small Business Administration office for suggestions. &nbsp;Talk to other business owners to see who they use and if they are satisfied with the service they receive. <br /><br />E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com0tag:blogger.com,1999:blog-1920181683116384004.post-80263489071812705822016-03-02T14:54:00.000-08:002016-03-02T14:54:18.933-08:00What do small business owners struggle with: service providersMost entrepreneurs or small business wear many hats, especially in the early days. &nbsp;They can't do it all and finding good services providers to back them up is crucial to the success of the business. &nbsp;While most hate to spend money on lawyers and accountants, the services provided by these individuals are very important. <br /><br />Spending the money to have a lawyer review your lease, your customer contracts and employee contracts can save you money, time and frustration later. &nbsp;Many new business owners are not familiar with all the terms in a lease and may not be aware that they will be responsible for taxes, maintenance costs and insurance as well as the regular rent and this can make a huge difference in their monthly expenses. <br /><br />Having an accountant set up your accounting system and helping monitor your cash flow is also key to the success of a new business. &nbsp;I can't tell you how many times a start up is aghast when they finally get their accounting set up and realize how much money they have spent on networking or packaging or office supplies. &nbsp;Just keeping an eye on the checking account balance isn't the same as knowing exactly what you are spending the money on. &nbsp;Getting the accounting set up before you start the business means you will be able to compare how you are actually spending the money to your budget or business plan. &nbsp;A good accountant can spot potential cash flow issues before they arise and help the business owner make adjustments to avoid the problem.<br /><br />Hopefully this has helped persuade any potential entrepreneurs to find a good attorney and accountant before they open shop and encourage existing small business owners to find good service partners as well. &nbsp;Next week we will discuss how to find the right attorney and accountant.E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com0tag:blogger.com,1999:blog-1920181683116384004.post-47952862689011469922016-02-24T13:15:00.000-08:002016-02-24T13:15:41.087-08:00What do small business owners struggle with : How to deal with cash flow Part 2We are working our way through a list of things small business owners struggle with the most. &nbsp;Last week we talked about how cash flow can be a struggle and this week we are going to talk about specific things you can do to improve the cash flow for your business.<div><br /></div><div>The key elements to cash flow are inflows and outflows: Inflows can occur as follows: sales=cash or sales=accounts receivable, collecting accounts receivable=cash. &nbsp;Borrowing money from the bank either in a loan or a draw on a line of credit=cash. Putting your own money into the business, either as a loan or as equity=cash. Selling assets you don't need (equipment)=cash.&nbsp;</div><div><br /></div><div>Outflows occur when you are spending money: make a loan payment or pay down your line of credit=money out the door. Buying inventory=money out the door. &nbsp;Buying equipment=money out the door. &nbsp;Paying employees and other bills=money out the door. &nbsp;Taking a draw for yourself=money out the door.</div><div><br /></div><div>How can you impact your cash flow? &nbsp;Increasing sales will bring more money in the door. &nbsp;Collecting your accounts receivable faster will bring money in the door faster. &nbsp;Having a line of credit to pay for inventory will slow the pace of money going out the door. &nbsp;Getting terms from your suppliers or the equipment vendor will also slow the pace of money going out the door. &nbsp;</div><div><br /></div><div>A great way to control cash flow is to try and match the terms you get from your suppliers with the terms you offer your customers. &nbsp;If your suppliers give you 30 days to pay for your inventory, then you can offer 30 days to your customers. &nbsp;If your suppliers give you 15 days, you don't want to give your customers 30 days unless you have a line of credit to cover the gap.When you are considering buying new equipment, think about the impact on your cash flow. &nbsp;Even if you get a loan to pay for it or the vendor gives you terms, you will still have money going out the door at some point so you want to make sure the new equipment will somehow generate some money coming in the door: will you make more sales because of the purchase? &nbsp;Will your costs (labor?) go down because of the purchase? Will the quality of your product improve so you can raise prices which will bring more money in the door?</div><div><br /></div><div>Many entrepreneurs focus simply on profits and that can be a real issue if the business has inventory or accounts receivable or a long manufacturing process. &nbsp;Mapping out the pace with which money comes in and money goes out is the secret to success for a small business.&nbsp;</div>E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com0tag:blogger.com,1999:blog-1920181683116384004.post-27162295845976505192016-02-18T14:53:00.001-08:002016-02-18T14:53:45.795-08:00What do small business owners struggle with : How to deal with cash flow We are talking about the top things small business owners struggle with and this week the subject is cash flow. &nbsp;We will start by talking about what cash flow is and then next week we will talk about how to manage cash flow.<br /><br />Small business start ups are often not expected to be profitable in the first year of operations, however having adequate cash flow is of paramount importance. A well written business plan is the first key to insuring adequate cash flow for a start up. &nbsp;After the start up phase has passed, the small business owner still needs to keep a close eye on cash flow. <br /><br />What is cash flow? &nbsp;Cash flow is the difference between the pace with which money comes into the business and the speed with which it leaves. &nbsp;This differs from profitability due to several factors. &nbsp;A business can be operating at a loss but still have enough cash coming in to survive due to proper financing. &nbsp;This is true during the start up phase but can also be true during times of expansion or economic hardship or seasonal issues. Many retailers operate at a loss or at break even until the holiday season. They need to purchase inventory before the holiday season, but they won't see the money from the sale of that inventory until later. &nbsp;Obtaining extended terms from a supplier or using a line of credit from a bank is an example of managing cash flow. Conversely, a business can be profitable and still run into cash flow issues. A business going through a period of rapid expansion may see this occur. &nbsp;They are purchasing inventory or new equipment or added staff to handle the sales growth but the cash flowing out for the purchases may outpace the increase in revenue.<br /><br />There is a popular saying in the business world "cash is king" and cash flow is a prime example. &nbsp;Next week we will dive into ways to manage cash flow.<br /><br />E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com0tag:blogger.com,1999:blog-1920181683116384004.post-8596584271842376232016-02-09T09:26:00.000-08:002016-02-09T09:26:19.806-08:00What do small business owners struggle with most?Being a small business owner is a difficult endeavor and the issues vary from business to business. &nbsp;Here are a few common issues which we will address over the next few weeks:<br /><br /><br /><ol><li>Understanding, managing and improving cash flow</li><li>Finding good outsourced service providers such as accountants and attorneys</li><li>Keeping up with laws and compliance issues</li><li>Dealing with employees if you don't have human resources person</li><li>Developing and maintaining an ongoing marketing strategy</li><li>Prioritizing tasks and delegating</li></ol><div>Are there any issues I am missing?</div>E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com1tag:blogger.com,1999:blog-1920181683116384004.post-7344856185357653412016-02-03T10:16:00.003-08:002016-02-03T10:16:22.805-08:00Avoiding tax hassles in January.We are still alive here at E&amp;S Entrepreneur Advisors LLC! &nbsp;It was a hectic couple of months so no time for blogging. &nbsp;We go<span style="background-color: #f3f3f3;">t all the payroll</span> taxes filed including all the W2s. &nbsp;The State of Wisconsin changed its requirements so we had to submit the W2s to the SSA by the end of January instead of the end of February as the State required employers to submit the W2s to them by the end of January and it has to be the SSA file. &nbsp;That added a lot of work for us in January.<br /><br />We also ran into some snags with 1099 filings as the State of Wisconsin has obviously tightened its screening of 1099 submissions. &nbsp;What we ran into was the EIN or Wisconsin ID numbers and business names on the 1099s not matching the State of Wisconsin's records. &nbsp;A few of these were typos on our part which we corrected at no cost to the client, but several were due to the names in the state records not being accurate. &nbsp;We have several clients who set up their own My Tax Accounts for the state and did it in their personal names instead of their business name. &nbsp;When we filed the W2s or the 1099s, the state kicked them out because the names didn't match. &nbsp;We will be working with our clients to fix this, but a lesson for all you new entrepreneurs out there: get expert help setting up your tax accounts.<br /><br />We also ran into some issues with the W9s our clients have for their service providers. &nbsp;For years, sole proprietors and single member LLCs obtained EIN for their businesses so they wouldn't have to use their social security numbers on the W9s and other official documents. This was a great way to prevent identity theft. &nbsp;Unfortunately, the IRS wants to match the dollars on the 1099s to the dollars reported on income tax forms and the numbers used on the income tax forms for sole proprietors and single member LLCs are social security numbers. &nbsp;So, all you sole proprietors and single member LLCs and all of you who collect W9s from them: they must have the person's social security number on them and that is the number used on the 1099, not the EIN. <br /><br />For all you newbies: a W9 is a document which lists your name, your business name, address and tax ID number. &nbsp;It is used for a business to business relationship much like a W4 is used in an employee-employer relationship. &nbsp;A business is required to send a 1099 form to the state, the IRS and the individual to whom the business has paid $600 or more for services in a year. Service includes rent which many are not aware of. &nbsp;This must be sent to any provider who is not a corporation so that is why the W9 is important and it is important that it is filled out correctly and completely. &nbsp;You don't need to send a 1099 if the service provider is an S Corp or C Corp but you do need the W9 on hand to show that is why you didn't send one. &nbsp;Another tip: this only pertains to providers you paid via check, cash, ACH transfer, bill pay (money came directly out of your bank account). &nbsp;If you paid with a credit card, you don't have to send the 1099 so if you don't want to bother with 1099s, pay with a credit card! &nbsp;The best time to get the W9 is when you owe the provider money-tell them you can't pay them until they provide the W9. &nbsp;That will give them the motivation to provide it to you. &nbsp;Make sure you look it over and verify that it is a social security number if necessary instead of a EIN. &nbsp;Social security numbers are 999-99-9999 while EIN are 99-9999999.<br /><br />Any questions: just ask an expert like us. <br /><br /><br />E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com0tag:blogger.com,1999:blog-1920181683116384004.post-90020621928721963642015-12-23T08:56:00.000-08:002015-12-23T08:56:27.453-08:00Handling changesIt is hard to believe that 2015 is almost over! &nbsp;There is no snow here in Wisconsin and the temperatures are very mild for December which makes the disbelief even stronger. &nbsp;It has been a year of changes for E&amp;S Entrepreneur Advisors and for my family.<br /><br />My husband was offered a promotion in March and accepting it meant moving 100 miles south of home and family. &nbsp;It was a great opportunity for him so he accepted the offer and we got our house ready for sale (I don't recommend living in the same house for 27 years without doing some periodic weeding out of belongings!) and found a home to buy in the Waukesha area. &nbsp;We moved two months later and settled into a new life. &nbsp;I commute back to the Fox Valley twice a month to work with clients who need to see me in person. &nbsp;I get to see friends and family as well which is nice, but the drive is tedious. &nbsp;The unseasonable weather this fall has made it easier so far.<br /><br />Moving has not only created the need for me to travel more, it also required Beth and I to rethink our processes. &nbsp;I was responsible for the banking and bill paying for our business and moving meant either changing our bank and mailing address or changing who was responsible. &nbsp;We elected to stay at our bank and Beth has assumed more of the administrative tasks. &nbsp;We did opt to offer online invoice paying to our clients which has reduced the number of trips Beth has to make to the bank and the clients love the convenience. &nbsp;The service charges we have to pay to offer this service have been offset by the convenience for Beth and for our clients. <br /><br />The move has also changed my work schedule. &nbsp;I was able to be quite flexible in the dates I offered my clients for appointments. &nbsp;With my need to travel, I am no longer able to offer this flexibility which has been hard for me. &nbsp;I liked being able to run over to a client's business if they were having a problem. &nbsp;I can still do a lot of problem solving via phone or email, but I miss the opportunity to see clients in person. <br /><br />Changes can be hard to handle, but with planning and flexibility it doesn't have to be difficult.E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com0tag:blogger.com,1999:blog-1920181683116384004.post-13270642491450292192015-12-01T11:37:00.000-08:002015-12-01T11:37:54.005-08:00Thinking of starting a business in 2016?Are you thinking of flexing your entrepreneurial muscles next year and starting a new business? &nbsp;Here are the types of businesses you want to avoid according to The Hartford's Bizahead website:<br /><br /><ol><li>Office Supply&nbsp;</li><li>Frozen yogurt/ice cream shop</li><li>Gift store</li><li>Video rental</li><li>Bookstore</li><li>Taxi/limo service</li><li>Social sites/search engines</li><li>Travel agency</li><li>Internet cafe</li><li>Restaurant</li></ol><div>The hottest industries to launch a business in:</div><div><ol><li>Food e-commerce</li><li>Legal marijuana</li><li>Agriculture software</li><li>Relaxation beverages</li><li>Public sector technology</li><li>Yoga/pilates</li><li>Fantasy sports services</li><li>Software publishers</li><li>Investigating and security services</li></ol><div>Chose wisely if you are going to start a small business. &nbsp;You need to have sufficient expertise as well as working capital and determination!</div></div>E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com0tag:blogger.com,1999:blog-1920181683116384004.post-32551376001801404772015-11-23T09:39:00.000-08:002015-11-23T09:39:10.382-08:00Slow down so you don't fall for scamsThere seems to be more small business scams out there than ever. &nbsp;I am a QuickBooks ProAdvisor and every day I get an email inquiring about my services as do many other ProAdvisors. &nbsp;The scammers get our email address off the Intuit ProAdvisor site and send a request for services. &nbsp;Many of the requests are barely literate which is a clue that they aren't legitimate. &nbsp;Some ProAdvisors have responded to the requests and they get an email response with a PDF attached which they are supposed to open to get the details for the requested services. &nbsp;I don't any who have opened the attached PDF, but I am sure nothing good will come for it.<br /><br />Another scheme is asking for you to verify your credit card or your email for your QuickBooks or other web based services you utilize. &nbsp;A clue there is that while the logo and details in the email look legitimate, the email address is not. &nbsp;Legitimate businesses would never initiate a verification via email. <br /><br />A business I work with recently had a close call when the accountant received an email from the owner asking him to make a wire transfer of close to $100,000 to pay for some capital expenditures. &nbsp;The email address looked legitimate but the accountant wisely checked via phone as he was unaware of any planned expenditures. <br /><br />The key in all of this is to read through any requests for information carefully and to take a moment to think if the request is reasonable and expected. &nbsp;Always call to verify that the request is legitimate before you respond and use a phone number you look up, not one provided in the questionable email.E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com0tag:blogger.com,1999:blog-1920181683116384004.post-23138689259460053972015-11-17T10:29:00.004-08:002015-11-17T10:29:56.086-08:00It's the middle of November-are you ready for the end of the year?Thanksgiving is rapidly approaching which is hard to believe. &nbsp;It seems like it was just summer and yet we are over half way through November. &nbsp;This is a good time to get organized for the end of the year as we will be saying that next! <br /><br />What do you need to do for the end of the year? &nbsp;Many small business owners must make estimated tax payments due to their ownership structure. If you haven't had your tax accountant review your financials, now is the time to do so. If your income has gone up significantly, you may need to make a large final deposit by January 15th in order to avoid penalties for under payment. &nbsp;You avoid penalties by making sure you owe less than $1000 in tax after subtracting withholdings and credits or by paying at least 90% of the tax for the current year, or 100% of the tax shown on the prior year's return, whichever is smaller. &nbsp;You can also discuss ways to reduce your tax burden. &nbsp;Tax accountants often suggest purchasing equipment or paying certain bills ahead, but make sure you are considering all your cash flow needs before you do so.<br /><br />If you have employees, you will want to verify their current mailing addresses so you system is up-to-date before W2s are prepared. &nbsp;Make sure you look for any fringe benefits which need to be reported on the W2s. &nbsp;This includes moving expense reimbursements, educational reimbursements, health and life insurance and transportation subsidies. &nbsp;If the employees have a company car, you will need to know what their personal usage was as this is another fringe benefit which must be taxed. You should also look at which vendors will need 1099s and make sure you have their addresses and W9s in hand.<br /><br />If you have inventory, now is the time to schedule your physical inventory count. &nbsp;Make sure you have sufficient staffing and think about ordering food to make it more fun for everyone.<br /><br />It is also a good time to start preparing your budget for 2016. &nbsp;What are your goals for the year? What were your major accomplishments this year? What changes need to be made? &nbsp;Setting aside a day for strategic planning is a good way to get this done. <br /><br />Take a look at your website and make sure all the links still operate and whether it still properly reflects your brand. &nbsp;If social media is an important part of your marketing efforts, create a calendar for the next year.<br /><br />Few entrepreneurs like tax planning and organizing, but doing so will help keep your small business moving forward,<br /><br /><br />E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com0tag:blogger.com,1999:blog-1920181683116384004.post-51009126797548614032015-10-27T13:49:00.000-07:002015-10-27T13:49:24.145-07:00What departments do you wish your small business had?If you worked for a large corporation and you had a legal question, you could contact the legal department and get the answer. &nbsp;The same would be true of accounting questions or human resources. &nbsp;Small businesses do not have the luxury of departments such as these although there are more and more outsourced options available to fill these needs. <br /><br />As a small business owner, what department do you most wish you had? &nbsp;I really wish we had an IT department. &nbsp;I am not very tech savvy and it would be so nice to have someone to call when my Chrome starts acting weird or I can't get a program to load properly. &nbsp;There are lots of computer and IT small businesses out there, but I have yet to find one who is really helpful with software related issues. <br /><br />We provide outsourced accounting, bookkeeping, payroll, sales tax and CFO services and we know of firms who provide outsourced human resources services. &nbsp;Legal services are always easy to locate although we recommend you look for an attorney with business experience. &nbsp;There are plenty of tax accountants available to assist small business owners and we suggest you make sure the provider you select has experience with the type of business you are running. &nbsp;Not all businesses are alike and if you are running a farm, you want a tax accountant who understands taxes for agriculture. &nbsp;Marketing is another area which causes difficulties for small business owners. &nbsp;Finding a firm who understands and operates within your budget is important. <br /><br />There are ways to get the department you need for your small business but make sure to do your research and pick the right provider.<br /><br />E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com0tag:blogger.com,1999:blog-1920181683116384004.post-15143989413652662282015-10-22T12:23:00.001-07:002015-10-22T12:23:40.364-07:00How can a small business owner sleep better?There are many things that keep a small business owner awake at night: their family, their bank account, their employees and their business. &nbsp;How can they rest easier?<br /><br />Finding business/life balance is tricky. &nbsp;It really can't be avoided when a business is in the start-up phase but realizing there is an end to the imbalance can help. &nbsp;Once the business is stable and cash flowing on its own, hiring employees and outsourcing tasks can ease the owner's burdens and free up time for family.<br /><br />Getting the business to the point that the bank account is no longer a worry requires a solid business plan, regular reading of the financials and making changes as needed and keeping clients or customers happy so they keep coming back and bringing their friends with them.<br /><br />Keeping employees off your mind requires hiring the right people, training them properly and rewarding them appropriately. &nbsp;Sites like zapposinsights or the Disney Institute can give a small business owner ideas on how to develop an employee training strategy and a business culture which will eliminate some of the worries of being an employer. &nbsp;Having the right people helping with payroll processing, payroll tax filings and human resource issues is also good for reducing employee related worries.<br /><br />Most small business owners treat their business like a family member so they will always worry about it. &nbsp;Doing some regular risk management planning and surrounding themselves with trusted advisors like an accountant, banker, insurance agent and lawyer can help reduce their concerns.<br /><br />Knowing that you have people who have your back can help anyone sleep better!E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com15tag:blogger.com,1999:blog-1920181683116384004.post-79983117009288812042015-10-08T14:25:00.000-07:002015-10-08T14:25:19.611-07:00Protecting your assets-sometimes the little things are dangerous.We talk about risk management and safeguarding your assets from time to time on this blog and we try to stay as current as we can on the subject. &nbsp;I set through a webinar today on internal controls and one thing that struck me in the technology section was the risk of carrying around information on a flash or thumb drive. &nbsp;This is a common practice and one we use regularly. &nbsp;I learned today how to encrypt such a device. &nbsp;It is easy to do and the link here will give you the details. <a href="http://encrypt%20a%20flash%20drive/" target="_blank">&nbsp;http://www.tomsguide.com/faq/id-2318737/encrypt-usb-flash-drive.html</a><br /><br /><br /><br /><br />E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com0tag:blogger.com,1999:blog-1920181683116384004.post-36336909515148755092015-09-21T11:25:00.001-07:002015-09-21T11:25:34.063-07:00How to handle marketing and advertising for your small businessUnless you are a marketing or advertising expert, one of the most difficult and expensive issues for a small business owner is how to handle those tasks. &nbsp;This is a crucial issue for a start up and one a potential business owner must figure out before opening a new business.<br /><br />No matter how great your product(s) or service(s) are, your business won't be successful if people don't know you exist which is why marketing and advertising is so important for a start up. &nbsp;If your new business is service based and your overhead and personal needs are minimal, then you may be able to get away with organic growth and word-of-mouth advertising. &nbsp;For everyone else, you need to have a solid marketing plan which should involve some expert advice. <br /><br />The marketing plan is part of most business plans and the more detailed, the better. &nbsp;Who is your target market? &nbsp;How will you find them? &nbsp;How will they find you? &nbsp;Will you have a storefront? &nbsp;Does the location fit your target market? &nbsp;Do you need a ecommerce website? &nbsp;Who will develop it for you? &nbsp;What kind of promotional materials do you need? &nbsp;Have you developed a comprehensive brand? &nbsp;These are all questions a start up needs to answer and hiring an expert to guide you is recommended so you don't make mistakes. <br /><br />Once you have your plan developed, you will want to track the results. &nbsp;You should be asking every customer/client/prospect how they found you and track this information on a spreadsheet or database or CRM&nbsp;program so you know what is working and what is not. &nbsp;Marketing and advertising will always require some trial and errors but tracking results will eliminate a repeat of the errors. <br /><br />Starting up a new business is usually expensive and many entrepreneurs try to reduce costs by doing it themselves. &nbsp;Skimping on advertising and marketing can be a mistake unless you have the working capital and time to grow your new business slowly. &nbsp;Get some bids from your marketing consultants and make sure you have a good fit with whoever you select. <br /><br />Like most of our previous posts regarding how to successfully launch a small business, the key to successful advertising and marketing is planning and tracking. &nbsp;A successful entrepreneur plans carefully, tracks the numbers, data, metrics and adapts accordingly. &nbsp;Even though many people dislike this part of running a small business, it is a key to success.E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com2tag:blogger.com,1999:blog-1920181683116384004.post-52542398293374963162015-09-04T09:30:00.002-07:002015-09-04T09:30:39.307-07:00Should you hire friends and family to work in your small business?Many small business people turn to friends and family to fill their employment openings. &nbsp;This is usually a bad idea. &nbsp;Many people find it difficult to act as boss to friends and family and many friends and family find it difficult to act as employee to someone they are friendly with. &nbsp;This often ends a friendship and puts strains on a family relationship. <br /><br />The main difficulties people experience with hiring friends and family is separating the personal relationship with the professional. &nbsp;Your sister may not look at you and see her boss, she sees the big sister who always bossed her around. Your friend is used to being an equal and you may find it difficult to act as boss. &nbsp;If you have other employees, a friend or family member may undermine your authority. <br /><br />If you do decide to hire friends and family, consider the skills you need for the position you are filling and select the person with the best fit. &nbsp;Using a family member who offers free labor is not a good idea if they lack the skills needed to be successful. &nbsp;Putting together a job description with skills required for the position is a great way to determine if your friend or family member has the necessary skills. &nbsp;Having a written contract and using a three month trial employment period is a good way to make the relationship formal. &nbsp;Have everyone fill out the normal new hire forms, whether they are friends, family or a regular employee. &nbsp;Understand that if you have other employees and you offer them paid holidays or sick leave or paid vacations, then you must offer this to friends and family as well. &nbsp;You must not offer your friend or family members more than what you are offering regular employees either.<br /><br />There are tax benefits to employing family members. &nbsp;If the business is a sole proprietorship or a partnership where both partners are spouses, then children, spouses or parents are not subject to FUTA (federal unemployment tax). &nbsp;Children under the age of 18 are not subject to FICA taxes (social security and medicare). &nbsp;All are still subject to income tax withholding. &nbsp;On a federal level, children of small business owners are not subject to as many limitations as to the number of hours and days they can work. &nbsp;You should check with your state regulations as they may differ.<br /><br />Consider all the pros and cons carefully before hiring a family member or friend to work for your small business. &nbsp;While you may think they will have greater loyalty to you and our business than a stranger would, the personal relationships may complicate the work relationship to an extent it is crippling.<br /><br />E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com0tag:blogger.com,1999:blog-1920181683116384004.post-1143961041691645762015-08-26T10:52:00.000-07:002015-08-26T10:52:57.432-07:00How to become a successful employer?So you have launched your small business and have grown to the point that you need employees. &nbsp;How do you go from being a solo entrepreneur to a successful employer? <br /><br />The first thing you need to do is figure out what the job looks like. &nbsp;What tasks will the employee be responsible for? &nbsp;What skills are needed to accomplish the tasks? &nbsp;Is the position going to be full-time or part-time? &nbsp;Hourly wage or salary? &nbsp;Writing a job description is a task few entrepreneurs enjoy, but it really is helpful.<br /><br />Next, educate yourself on employment laws. &nbsp;You don't need to be an expert, but you do need to understand the basics and you do need an expert to help you navigate all the complexities. &nbsp;The IRS has a good site to learn the basics. &nbsp;Publication 15 (Circular E) is a good place to start.<br /><br />We recommend using a payroll processor or hiring an expert to get your payroll system set up properly. &nbsp;Training on how to file and pay payroll taxes is a must if you are going to process and file payroll taxes yourself. &nbsp;The federal government takes payroll taxes very seriously (seemingly more so than income taxes) so it is important to take this job seriously. &nbsp;Many small business owners fail to understand that taxes withheld from an employee's check are his/her money and not submitting the taxes to the appropriate authority is considered theft. &nbsp;It is often best to leave the whole processing of payroll and filing of taxes up to the experts and this frees up an entrepreneur's time for revenue generating tasks. &nbsp;There are many big processors like Paychex and SurePay as well as small local providers. &nbsp;Some provide portals where the business can enter hours and then the processor handles the rest. While many small business owners are loathe to spend money on outside services, this in an area where you don't want to make mistakes as they can be costly to the point of sinking a business.<br /><br />Another issue to be dealt with as an employer are the tasks a human resources department deals with for larger companies. &nbsp;There are many service providers who can handle this for a small business on an outsourced basis and we do recommend having someone like this as a resource. &nbsp;There are many things you legally cannot ask a job applicant and many business owners are not aware of these questions and limitations. &nbsp;Understanding laws surrounding the hiring process, maternity leave, family illness, drug testing, and termination routines can prevent actions which can result in painful lawsuits for a small business owner.<br /><br />Once you have found the right employee, you will want to take the time to properly train him/her. &nbsp;Again, it is helpful to put together an organized, thoughtful training program. &nbsp;Well trained employees make fewer mistakes and are happier than those thrown into a job. &nbsp;Having regular performance reviews may sound tedious, but they give both the employer and employee the chance to connect and problem solve.<br /><br />How do you become a successful employer? &nbsp;Do your homework, hire an expert to get you started strong and take the time to find, train and retain the right employee.E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com0tag:blogger.com,1999:blog-1920181683116384004.post-11711622635884455792015-08-19T14:29:00.001-07:002015-08-19T14:29:28.291-07:00How to get a bank loan for your start up<span style="color: #3f3f3f; font-family: Helvetica, Arial, sans-serif; font-size: 12px; line-height: 17px;">If you have answered the previous questions in a way that supports your ambition to open a small business, the next thing you need to think about is how you will finance the start up. &nbsp;A bank loan is the traditional source of funding so let's talk about what you will need to do to get the loan.</span><br /><div><span style="color: #3f3f3f; font-family: Helvetica, Arial, sans-serif;"><span style="font-size: 12px; line-height: 17px;">First you will need to create a business plan. &nbsp;Banks will always require a full business plan for a start up and creating one takes a good chunk of time, even for professionals. &nbsp;We generally expect a plan to take 40-60 hours to complete and a novice can expect it to take much longer.</span></span></div><div><span style="color: #3f3f3f; font-family: Helvetica, Arial, sans-serif;"><span style="font-size: 12px; line-height: 17px;">Next you will need to supply the bank with information about your personal finances. &nbsp;For most small business start ups, the owner is as important as the business plan so if you have a poor credit history/rating and little personal equity or cash, then a bank loan is not the way to go. &nbsp;The bank will ask you to complete a personal financial statement which will detail all your assets and debts and sources of income. &nbsp;They may ask for documents, like bank statements. to verify this information. &nbsp;They will also ask for three years of personal tax returns to verify your income and they may ask for a current pay stub. &nbsp;</span></span></div><div><span style="color: #3f3f3f; font-family: Helvetica, Arial, sans-serif;"><span style="font-size: 12px; line-height: 17px;">Pull together the resumes of all pertinent owners and employees. The bank will want to see that you have amassed the proper skills to run the business successfully.</span></span></div><div><span style="color: #3f3f3f; font-family: Helvetica, Arial, sans-serif;"><span style="font-size: 12px; line-height: 17px;">Have a folder with all your legal documents: articles of incorporation, business licenses and registrations you may need, operating agreements, franchise agreements, commercial leases and any other relevant contracts.</span></span></div><div><span style="color: #3f3f3f; font-family: Helvetica, Arial, sans-serif;"><span style="font-size: 12px; line-height: 17px;">You will need to be able to explain to the lender what you will be using the loan proceeds for and how the business will repay the loan. &nbsp;Have a detailed list of &nbsp;any assets you expect to purchase including price and anticipated supplier. &nbsp;</span></span></div><div><span style="color: #3f3f3f; font-family: Helvetica, Arial, sans-serif;"><span style="font-size: 12px; line-height: 17px;">Be prepared to explain who will be handling all the important tasks in the business.&nbsp;</span></span></div><div><span style="color: #3f3f3f; font-family: Helvetica, Arial, sans-serif;"><span style="font-size: 12px; line-height: 17px;">It can be very helpful to hire an expert to put together the business plan, but the owner(s) need to comfortable with the details and assumptions in the plan so they can answer the questions put forth by the lenders.&nbsp;</span></span></div><div><span style="color: #3f3f3f; font-family: Helvetica, Arial, sans-serif;"><span style="font-size: 12px; line-height: 17px;"><br /></span></span></div><div><span style="color: #3f3f3f; font-family: Helvetica, Arial, sans-serif;"><span style="font-size: 12px; line-height: 17px;">Getting a bank loan is one of the most stressful parts of starting a business, but if you pull together all the expected information and prepare for the meeting with the lenders, you can succeed.</span></span></div><div><span style="color: #3f3f3f; font-family: Helvetica, Arial, sans-serif;"><span style="font-size: 12px; line-height: 17px;"><br /></span></span></div>E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com3tag:blogger.com,1999:blog-1920181683116384004.post-60656175262236241462015-08-10T13:35:00.000-07:002015-08-10T13:35:26.888-07:00How can you insure the success of your business expansion?When you started your small business, you probably handled most of the tasks. &nbsp;You interacted with customers/clients, took care of the accounting, dealt with the marketing, made the trips to the bank and office supply store and maybe even cleaned the place. &nbsp;Your business has now grown to the point where you have staff to handle many of these jobs and you are considering expanding. &nbsp;What do you need to do to insure the success of this expansion?<br />The first thing you need to do is to make sure your business model is really fine tuned before you expand so make note of the mistakes you made with your initial opening. No matter how much you plan, there will be mistakes so use them to your advantage by learning from them. &nbsp;Were you overstaffed? &nbsp;Understaffed? &nbsp;Did you schedule your grand opening too soon? &nbsp;Did you not advertise your grand opening enough? &nbsp;Talk to your staff and customers and take their thoughts and ideas into consideration. Make note of everything that went right as well and use this information to plot your expansion.<br />The next thing you need to do is to write an business plan for the expansion. &nbsp;Most likely if your initial start up was a success, you had a business plan to drive the company launch. This expansion plan will be easier as you will have real numbers to use. <br />One major thing to consider when expanding is management. &nbsp;When you have one location, you, the owner, can monitor everything very closely. &nbsp;You will not have this luxury when you open a second location. &nbsp;You can't be at two places at the same time so you will want adequate staff to maintain control. &nbsp;This may require more money for payroll. &nbsp;If your plan includes further expansion, this will become even more of an issue. &nbsp;We have seen numerous cases where a successful business opened a second location and continued to be successful but then opened multiple additional locations and failed. &nbsp;Make sure your plan shows adequate cash flow to allow for a qualified manager at each additional location. In addition to determining the cost of additional staffing, you will also need to consider the additional debt service your expansion make incur. <br />You will want to consider the location of your expansion. &nbsp;Depending on the type of business you are running, &nbsp;you don't want to new location to steal sales from your original location. &nbsp;Consider whether the culture is different in your proposed new location. &nbsp;What works in one community may not in another so do your research.<br />Supply chain is another issue to deal with when planning an expansion. &nbsp;Do your existing suppliers have sufficient capacity to handle your additional purchase needs?<br />Another issue is whether to start from scratch or acquire an existing business when expanding. &nbsp;There can be cost savings in the latter as well as built in management possibilities.<br />Finally, think about your energy level and whether you can adequately manage your expanded business. &nbsp;The short term start-up period will be hectic, but the overall time commitment must be considered as well.<br />You may find economies of scale from an expansion which will abate some these additional costs, but you won't know this without crunching the numbers and completing the plan. Take your time, do your research and consider all the elements before expanding your business and you will insure your success.E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com0tag:blogger.com,1999:blog-1920181683116384004.post-11140571453375658702015-08-05T12:32:00.000-07:002015-08-05T12:32:13.581-07:00How do I finance my start up? We are on question eight of our list of questions you should ask and answer before starting a business! &nbsp;This week we are dealing with how to finance your start up. &nbsp;The traditional way is with a bank loan. &nbsp;You will need a business plan to apply for a bank loan and you need to know what your personal credit score is. &nbsp;Since the business is new, the bank will be concerned about your personal resources as a backup for paying back the business loans. &nbsp;Do some research and pick a bank which can tap into SBA guarantees as they can take on riskier loans.<br />Another source of funding is friends and family. &nbsp;It can be difficult to ask for their help, but using crowdfunding sites can make it easier.<br />You can also use peer-to-peer funding by using sites such as Prosper.com or LendingClub.com. Look into local non-profit group such as Community Development Corps. &nbsp;They often will provide loans up to $150K with very reasonable rates and terms. &nbsp;The SBA also oversees micro-lending programs which are also run by local non-profits. &nbsp;Micro loans can be used for working capital which is very helpful for many start ups.<br />If you are willing to give up part of your ownership, you can consider equity investors. &nbsp;Sites like Grow Venture Community, Microventures and Angel List can connect your with interested investors.<br />For certain types of businesses, look into factoring in which you sell your accounts receivable to a business in return for cash upfront. &nbsp;This is helpful if you must offer extended terms to your customers. &nbsp;A similar device is Purchase Order or Merchant Cash Advance financing in which you sell your future sales revenue (PO) for cash upfront. &nbsp;Both factoring and PO financing concern themselves with the credit history/rating of your customers rather than your business. <br />Finally, many small business owners rely on credit cards to fund their start ups. &nbsp;Be very careful with this method as you can quickly move into sky high interest rates which usually guarantee failure. &nbsp;Also be cautious with self-funding. &nbsp;If you use up all your personal resources, banks are unlikely to fill in the gap should you need additional capital. &nbsp;They prefer to lend the initial funds and have you fill in the gap with your own money.<br /><br />That is just a brief primer on how to fund a new business. Let us know if &nbsp;you have had any positive experiences with any of these methods.E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com0tag:blogger.com,1999:blog-1920181683116384004.post-88263816880676244352015-07-22T13:47:00.000-07:002015-07-22T13:47:03.595-07:00How to handle bookkeeping and accounting for a new businessWe have been addressing the various questions an entrepreneur needs to answer before starting a new business. &nbsp;This week we get to one of my favorites, how to handle bookkeeping and accounting! I know that most people do not enjoy these tasks, but the invention of accounting software programs has made it much easier for the non-accountants in the world.<br /><br />QuickBooks is the most popular program out there, but Sage, FreshBooks, Xero and Wave are just a few of the alternatives. &nbsp;Some can be used on an iPad or mobile phone which is nice for the entrepreneur on the go. &nbsp;I recommend doing some research as to the functionality of each program to decide which is best for your business. &nbsp;Some do not work well for inventory or certain types of businesses like restaurants. &nbsp;Consider whether a desktop version is what you need or if cloud-based is a better choice for you. <br /><br />Once you have selected the correct program, hire an expert to get you set up and trained. &nbsp;I cannot tell you how often we are hired to clean up some a QuickBooks file. &nbsp;We usually find that the problems are not due to sloppiness or a lack of intelligence by the user, but rather a lack of understanding of accounting. &nbsp;The programs are created to reduce the need for an understanding of debits and credits, but some issues, like inventory and payroll, do require more knowledge at least during set up. &nbsp;Set up and training is always cheaper than clean up! &nbsp;You also may need expert advice on the best way to enter the data into your accounting program. &nbsp;If you have a POS which will track the details of your sales and inventory, you may not need all the detail in your accounting program. &nbsp;You will need the dollars entered so having an expert guide you through the process will insure that the information is correct but not redundant. &nbsp;This is very important when time and dollars are limited during the start up phase.<br /><br />Finally, make sure to select your accounting program and get it set up and running <i><b>before</b></i> you open your business. &nbsp;Many entrepreneurs leave the accounting until a later stage in the start up process because there are so many things to do when opening a business. &nbsp;This is a mistake as you will not be able to track how your start up is doing if you aren't doing the accounting from day one. &nbsp;Too many owners find they have wasted money on packaging or office supplies or other unimportant expenses because they were not able to keep a close eye on the totals via the accounting process. <br /><br />Should you try to save money and do the accounting yourself or should you outsource the task or hire a bookkeeper or accountant to do it? &nbsp;Be honest with yourself: if you are not going to keep up with it yourself then find someone else to do it. &nbsp;It really is an important part of running a successful business so starting strong and staying on top of it is crucial.<br /><br /><br />E&amp;;S Entrepreneur Advisorshttp://www.blogger.com/profile/18379606141452530598noreply@blogger.com0