Small Business Success Index 5

Index Score^*		Grade
SBSI INDEX	73	C-
Capital Access	67	D+
Marketing & Innovation	65	D
Workforce	76	C
Customer Service	88	B+
Computer Technology	75	C
Compliance	92	A-
*Index score is calculated on a 1-100 scale.

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Archive for March, 2010

Creating a Financial Workflow

March 25th, 2010 :: Thursday Bram

When you run a small business, bringing in someone to handle bookkeeping and similar tasks just isn’t always an option. The cost of hiring help can make it necessary to do that sort of work, although it doesn’t hurt that keeping your own books guarantees that you’re familiar with every aspect of your business.

The biggest problem for many business owner when it comes to updating financial records is actually getting around to it. It’s easy to put off tasks like tracking expenses — after all, you can always catch up at the end of the week. Then a week turns into a month, which turns into a quarter, which turns into a year before you even notice. It’s easy to focus on tasks that directly make you money, rather than figuring out where that money goes. Having a financial workflow in place, though, can help you manage your business’ money in such a way that it doesn’t get out of hand.

Your Financial Workflow

A workflow is a series of steps, each one following the next so that you can complete a larger task — usually a task that you must complete on a regular basis. It can make sense to write down the steps you need to keep up with your finances: from reconciling your bank statements with the receipts you have to entering information into your bookkeeping software, having a checklist makes the process smoother. It’s easy to say that you already know what you need to do, but it’s easy to miss a step or put things off entirely because you feel like there’s so much to do. Having it in writing lets you build a habit of handling your finances, making it easier to stay on track.

Determining just what steps you need to take can be a longer process. Before you try to create the perfect workflow, discover what you’re already doing that works. Follow the approach you normally take to get your books up to date and just write down the steps you take. If you’re not the best about doing so on a regular basis, you may have to actually spend some time on your books to start getting an idea.

Once you have a list of the steps you generally take in place, you can look for opportunities to tweak the process. You may find that you have to take information off the same piece of paper multiple times — that can be an opportunity to improve your system because if you can arrange things so that you only handle each piece of paper once, you can speed things up. There are also many tools that will help you speed up the process, such as receipt scanners.

You may find that you need to keep adjusting your routines as you go through them. The first couple of times, it’s possible to miss a step, especially if you haven’t practiced the habit. But having a list that you can work down on a daily or a weekly basis will help you to build the habit, as well as make things much easier when you are in a position to hand the bookkeeping off to someone else down the road.

Image by Flickr user ben_onthemove

Tags: bookkeeping, finances, receipts, workflow
Posted in Accounting and Taxes | No Comments »

Book Review: Starting a Business with $100 by Ja-Nae Duane

March 24th, 2010 :: Steven Fisher

Recently, Shashi met Ja-Nae Duane who put together the book, “Starting a Business with $100“. According to Ja-Nae’s bio, she is a “strategist, artist, creative economist, and author of “How to Start Your Business with $100” Ja-Naé Duane, has been written up and seen in dozens of media, including by Associated Press, NPR, Classical Singer Magazine, Boston Globe, and Business Week. Mostly recognized for her diverse skill set and unwaivering commitment to improving the quality of life for our global community, Ja-Naé was nominated as one of New England’s “Most Innovative Leaders of 2007.” She is CEO of Wild Women Entrepreneurs, CEO of Ja-Naé Duane Ventures, Co-Founder of the Massachusetts Artist Leaders Coalition, and Founder of The Leaders. Ja-Naé is also a professional opera singer, social media strategist, and a faculty member at Northeastern University.”

I recently had the opportunity to read her book, “Starting a Business with $100“. Here are a few highlights of the book that I really liked:

Ja-Nae is a polymath

The term polymath is an updated version of “Renaissance Man” and according to Wikipedia, “a polymath is a person, with superior intelligence, whose expertise spans a significant number of different subject areas. In less formal terms, a polymath (or polymathic person) may simply be someone who is very knowledgeable”. When you read Ja-Nae’s bio you see she is a force of nature with her entrepreneurial and grassroots work and this book serves as part-lessons learned and part toolbox for those looking to bootstrap their new business.

Seven Sections of the Book

The book is separated into five major areas – branding, teams, marketing, strategic partnerships, outsourcing, passive income and negotiations. I would read through things and quote stuff, but there is so much amazing stuff in there that you should take a read yourself.

$100 Business and the Expense Sheet

From her book she shares an expense sheet on how her business cost $100 to start. I have included it below so you don’t say to yourself “this is just a gimmick”. It is not and here is the list:

Web domain: $8.95 yearly
Web hosting with 500 emails: $38.28 yearly
Affiliate Program that will handle your transactions: (www.EstoreAdvanced.com) $50
Web site design: barter or www.elance.com
Logo Design: barter or FREE on www.VistaPrint.com
Mailing list and/or Newsletter capability: FREE through Facebook, Google Groups or www.ConstantContact.com (You can have up to 50 names for FREE. Anything after that, you pay.)
Business Cards: FREE on www.VistaPrint.com (Just have to pay for shipping)
Administrative work: barter, collaborate, or offer profit sharing
Accounting: barter, collaborate, or offer profit sharing
Marketing: barter, collaborate, or offer profit sharing
Legal Matters: barter, collaborate, or offer profit sharing
Copy-Editing: barter, collaborate, or offer profit sharing
Website Maintenance: barter, collaborate, or offer profit sharing
Search Engine Optimization: barter, collaborate, or offer profit sharing
Database: barter, collaborate, or offer profit sharing

Check the Book out at Ja-Nae’s site and tell us what you think.

Posted in small business | 3 Comments »

Capitalism and Social Good – The New Double Bottom Line

March 24th, 2010 :: Steven Fisher

Before we dive in, it is important to note that my background is traditional for-profit ventures and my bachelors degree is in accounting. Last year I created a non-profit with two other people and I have been learning about non-profit accounting practices. During this time, I have learned about an emerging trend in corporate giving and for-profit companies doing social good. This new accounting practice is called the “Double Bottom Line” and it is explained beautifully in this article from Entrepreneur.com. Excerpts are below:

From the Entrepreneur.com Article:

What It Is

The L3C, just like the LLC, is a for-profit business structure. Rick Zwetsch, principal partner with interSector Partners–the first L3C in Colorado–notes that the reason you may not have heard of L3Cs is because legislation for them ha

L3C is a hybrid model that allows owners to do well by doing good. The bonus? L3Cs can get funding from sources that have traditionally been hard to tap–such as foundations. The L3C, just like the LLC, is a for-profit business structure. Rick Zwetsch, principal partner with interSector Partners–the first L3C in Colorado–notes that the reason you may not have heard of L3Cs is because legislation for them has only been signed into law in Vermont, Michigan, Wyoming, Utah and Illinois, as well as the Crow Indian Nation and the Oglala Sioux Tribe. However, L3Cs are recognized in all 50 states, and there are just over 100 of them up and running right now. So, no matter where your business is located, you can form an L3C, “Just as you can form a Delaware corporation and do business in Idaho, Colorado, North Carolina or any state in the U.S.,” Zwetsch explains.

How to Organize an L3C
Though the process of organizing an L3C is relatively simple, Zwetsch advises those interested in forming an L3C to seek legal counsel to get it right. Elizabeth Minnigh, an associate with Buchanan Ingersoll & Rooney, points out that currently there are no L3C specialists because the format is relatively new. “However, it will probably be most cost-effective to use someone with some familiarity with the L3C structure,” she says, adding that resources–including sample operating agreements that can advise anattorney how to proceed–are available online at the Americans for Community Development website.

Zwetsch says factors such as the initial and projected number of organizing members and/or managers, growth, and the projected need for capital over time will determine how complicated the organization of the L3C will be.

The cost of organizing itself is relatively low, according to Zwetsch. “interSector Partners filed Articles of Organization with the Vermont Secretary of State and paid a $100 fee.” Zwetsch says interSector Partners then had to register as a foreign entity doing business in its home state of Colorado. “It’s a simple three-page form and a $125 fee.”

Finding Funding
Raising funds is where the L3C has an edge, particularly during economically trying times, when banks are reluctant to loan and angel investors have flown the coop. By becoming an L3C, a business is better positioned to receive a mix of investments from both traditional sources and nonprofit foundations. The latter source of funding is especially compelling because foundations must make Program Related Investments (PRIs) annually to the tune of at least five percent of their assets in order to keep their tax-exempt status.

It’s a win-win because all too often, foundations make grants with no financial return just to meet the deadline. A PRI that generates even a modest return can be beneficial to both the nonprofit foundation and the L3C. It also saves some of the IRS scrutiny because L3Cs are specifically formed to further a socially beneficial mission.

Pete Gingrass, principal partner with Future Point, a Wyoming-based L3C that supports the impact of integrated community development initiatives, says that even with the availability of foundation funds, Future Pointe accessed startup capital from internal networks such as friends, family and personal investments. “We chose not to seek out any institutional funding until we are able to demonstrate our model. Part of this demonstration includes being able to generate enough revenue through our core program activities to sustain operations,” explains Gingrass.

That said, if an L3C owner is looking for capital from PRIs, Gingrass recommends searching through the Council on Foundations database to locate foundations by geographic area. “My second step would be to go through your network tools to see if anyone has relationships with foundation personnel. Building social capital is one of the ways that L3Cs will get funded in the future.”

Another potential source of capital to consider is a micro-finance organization because many have predetermined social missions, too. Though micro-finance organizations have some of the same requirements as traditional lending institutions the L3C’s mission may help make a strong case to snag a loan.However, Gingrass says, “Your L3C status will not provide any leverage to negotiate interest rates.”

Pitfalls and Plusses
While L3Cs’ social missions purpose provides a unique branding opportunity, it also imposes a duty on its owners “to manage the L3C in accordance with this purpose,” according to Minnigh. To that end, Zwetsch says it is important for the business owner to draft an operating agreement that spells out obligations, contributions and other governance provisions, just like an LLC.

While there is no “low-profit police,” Zwetsch says, “Ultimately, social purpose is your guiding star, and if you’ll have to answer to anyone regarding profit, it may be those who fund your L3C or those your L3C serves.”

Bottom Line
The L3C represents a brave new world of social entrepreneurship that Minnigh says depends on the objectives of the people forming the entity and the potential pool of investors.

The immediate success of interSector Partners makes Zwetsch optimistic. “For those with a pioneering spirit, we believe the L3C experience will be fruitful, and the rewards will be many.”

Could you use double bottom line accounting in your business?

What do you think of this new approach? Do you think you could use this in your business?

Leave your thoughts and ideas in the comments.

Posted in Uncategorized, UnintentionalEntrepreneur | 6 Comments »

Great Small Business Backoffice Tools

March 23rd, 2010 :: Steven Fisher

I recently came across this amazing list of 90 useful freelance resources at http://www.underworldmagazines.com/90-useful-freelance-tools/ and it struck me that many of these tools would be great for any small business backoffice. I picked a few and have showcased them below:

Time Tracking Tools

getharvest.com – Harvest is a service of Iridesco, a New York City-based web software company with big ideas. Founded in 2003 by designers Danny Wen and Shawn Liu, Iridesco has its roots as a creative agency. In 2006, the company evolved from its consulting model into a software service provider with Harvest as its flagship offering.

14dayz.com – We are drivers in the movement for better software. Too many features make software complex and tedious to use, install or maintain.

lesstimespent.com – As a freelancer your time is how you make money. You must be dilligent in tracking and billing for this hours. Minor lapses in time tracking will cost you thousands at the end of the year. Not only track your time but record what you accomplished during those times.

Invoicing Tools: Make invoice to send to your clients

Simplybill.com – Simplybill brings simple invoice management to all. Instead of wrestling with overly complex accounting software or trying to mash-up a spreadsheet into some sort of design, begin sending attractive invoices in minutes.

blinksale.com – Blinksale is perfect for anyone who needs to invoice clients for services or products sold. Blinksale is an excellent choice for attorneys, accountants, designers, IT professionals, software developers, journalists, contractors, engineers, architects, videographers, and more. Basically, if you need to send invoices, Blinksale can work for you

quickbooks.intuit.com – Instant invoices and expense tracking—get organized

freshbooks.com – Send, track and collect payments quickly. Great for teams, freelancers and service providers.

lessaccounting.com – Less Everything, Inc is based out of Jacksonville, Florida. The company has been a successful web firm for several years and began pursuing Ruby on Rails product development in 2007. In the beginning, we struggled with accounting, because accounting is scary, accounting is boring and quite simply, no one likes accounting.

Project Management Tools: Keep Your Projects On Time.

rememberthemilk.com – Managing tasks is generally not a fun way to spend your time. We created Remember The Milk so that you no longer have to write your to-do lists on sticky notes, whiteboards, random scraps of paper, or the back of your hand. Remember The Milk makes managing tasks an enjoyable experience.

activecollab.com - activeCollab is a project management & collaboration tool that you can set up on your own server or local network. Work with your team, clients and contractors in an easy to use environment, while keeping full control over your data. Now improved with Invoice and Source Modules.

Projects.zoho.com – Looking for Tasks and Milestones? We do that too. But above all, Zoho Projects is about helping teams get their projects done.

5pmweb.com – 5pm can be your central location for project and task management, team collaboration, time tracking, reporting and more

planzone.com – As Information Workers, we all spend a great deal of time working with others on projects of one kind or another. We all have experienced the frustration of trying to collaborate with team members and manage our own task lists, email messages, files and schedules with basic desktop tools. It’s not working. Because we are experienced project management specialists at Planzone, we know that a successful project requires a good project management tool. And, a good project management tool is one that helps you spend less timemanaging information and more time acting on it. It’s that simple.

comindwork.com – Assign tasks, share files, discuss ideas, involve clients. Zero-investment and flexible pay-as-you-go pricing. Secure and reliable SaaS platform. Fully customizable.

worketc.com – We combine CRM, Projects, Billing, Documents, Time sheets and more with a powerful automation engine to help take your small business to the next level. The only complete small business management software solution.

proworkflow.com - ProWorkflow helps your company manage projects, tasks, time tracking, staff and contacts at anytime from anywhere. All you need is a web browser or iPhone!

Other Business Tools

zoho.com

campaignmonitor.com – Campaign Monitor is a small software company right near the beach in southern Sydney. We build email marketing software for designers and their clients and are lucky enough to have lots of passionate customers.

feelbreeze.com – Breeze is another sophisticated yet simple web product from Element Fusion. Since 1999, we’ve grown our company with a reputation for rising above the competition.

Google Apps - google.com/apps

Google Wave - wave.google.com

gotomeeting.com - Citrix Online is a fast-growing division of Citrix Systems, Inc. (Nasdaq: CTXS), based in Santa Barbara, California, with satellite offices and data centers around the world. Every month, more than 17,000 new customers start using Citrix Online’s services to work from anywhere with anyone – using our remote-connectivity tools to save time, get more done and connect to others around the world.

wufoo.com – Wufoo strives to be the easiest way to collect information over the Internet.

sba.gov

paypal.com – PayPal is the faster, safer way to pay and get paid online. The service allows members to send money without sharing financial information, with the flexibility to pay using their account balances, bank accounts, credit cards or promotional financing.

That should get you started. If you want to see the larger, more comprehensive list, check out the Underworld Magazines article.

Tags: accounting, backoffice, billing, time tracking
Posted in small business | 1 Comment »

Businesses & SXSW: There's More To Be Done Besides Partying

March 23rd, 2010 :: Ken Yeung

So I’m back from South by Southwest for the second year and I’ve found it quite rewarding. However, one thing that I’m always seeing or hearing about is from people asking what good is it for them to actually attend SXSW. Common excuses for not going is that it’s “Spring Break for Geeks“, which isn’t entirely off-base, but there is so much more to SXSW besides the parties that will benefit businesses. In fact, let’s look at some of the reasons now:

Take part in the parties.

Yes, I’m getting this reason out of the way…if you’re interested in starting a new business and want to get out there and meet some influential people, then you can’t just be sitting around attention sessions and panels. There’s much more networking opportunities that await you at the Mashable MashBash, TechSet & Windows Phone Party, FourSquare Party, etc. And while you might think that simply the word “party” denotes alcohol and pictures that shouldn’t be seen afterwards, you’re probably wrong. In fact, you’re going to have a great chance to mingle with folks like Kevin Rose, Gary Vaynerchuk, Leo Laporte, Robert Scoble, Pete Cashmore, Brian Solis and many others. While you won’t have more than 30 seconds to chat with each one of these people, you’re going to do some solid networking because you’re going to wow them with a great opening line and then leave behind a business card and a promise to talk with them more about your startup business, right? Right…there’s more to this pitching thing…

Launching a product? Don’t need a booth.

Traditional convention marketing may dictate doing a booth at the expo hall and that’s probably well and good, but only if you really have the money. Otherwise, you might want to try more guerrilla marketing programs. Just look at how FourSquare did their marketing – they didn’t have a booth at the expo hall. In fact, they didn’t really need one because they didn’t have that much to display. But what they did do was go outside the halls of the convention center and put on an interesting game of real-life Four Square and give out tattooes. In fact, they created their own ad hoc booth, per se. Find a more viral way to promote your product through a lounge area or perhaps a meet & greet event at SXSW to make it more private and captive. Nokia held a lounge at a nearby Fogo de Chao for two days of the festival where people gathered and learned about their latest products. Or, you could simply find a more gung-ho approach throughout the halls of SXSW. Be creative – the more creative and viral means the more attention paid to your product. Especially if it provides some real value.

Go to the sessions.

Yes, I am advocating that you send people to SXSW and have them pay attention to the sessions. HOWEVER, what should not be overlooked is the fact that you should not be at all the sessions. Choose the ones that are really important to you, but don’t feel compelled to stay at the session if it starts to get boring just because it might provide some insights to your business. Find the ones that you’ll feel comfortable with and will provide genuine benefit to your business. Stick around at the end for a few minutes and talk with the panelists and get their contact information so you can talk with them later – don’t try and lay it out there all at once because they just won’t remember. With SXSW being so big, you’re going to have to decide which sessions are more important and whether going to a tweetup or lunch gathering outweighs that. But some sessions are definitely worthy of SXSW so just make sure you balance your schedule.

Don’t miss out on the competition.

Did you know that there was at least two competitions held at SXSW? There was a casual gaming competition sponsored by USA Networks and also the annual Microsoft BizSpark Accelerator competition. This is probably a really good program for anyone to participate in if they’re launching a business or feel their existing business is qualified. It’s going to be here that you put your work to the test and go up against your competitors and are judged by well-respected thought leaders in the industry. Once you’ve settled your battles, don’t miss out on the Web Awards program that is also held every year. Each of these programs are open to applications months prior to the conference and you can find out more on SXSW.com.

Submit a panel to talk at SXSW.

Want to be known? You want people to flock towards you to ask you questions about your business, case study or whether you’re hiring right now? Then submit a topic for a panel or lecture at SXSW. Yes, it will be a popularity contest to get your panel chosen, but nevertheless, if you are chosen, you’re going to have a great time speaking to people about something you’re passionate about. If anything, it’ll get your company’s name out there for more people to learn about. But if you’re going to do this, don’t make your topic bland, but find out what people are interested in learning about and that will help motivate people to vote for your selection.

So there you have it…five reasons for sending someone to SXSW to help your business. Don’t mistake SXSW as entirely a partying event because that just becomes way to childish and personal. We’re all going to SXSW for a reason and regardless of our intention, people will always want to do business and learn about the latest thing happening on the web.

Posted in Uncategorized | No Comments »

Last-Minute Tax Tips

March 23rd, 2010 :: Thursday Bram

The due date for federal income tax returns is just around the corner. If you haven’t already gotten on top of your taxes, it’s time to do so. These last minute tax tips can help you meet that April 15th deadline without a problem with the IRS.

Estimate the Tax You’ll Owe

Ideally, you’ve been making quarterly estimated income payments and you have a clear idea of how much you’ll owe to the IRS. If, for any reason, you’re not going to get your tax paperwork done on time, you can easily file for an extension, as long as you’ve already paid however much tax you expect to owe on April 15th. It may not be a bad idea to overestimate, depending on the reason the rest of your paperwork won’t be ready — you can face penalties if you underestimated what you might owe.

Having an estimate can also make things easier if you will be on time with your tax return but just haven’t gotten around to it yet. You don’t want to be in the position that you need to make a payment and don’t have quite enough in your business checking account for any reason.

Get Organized

If you’re going to be asking your tax preparer for a rush job, you’ll have much better results if you aren’t handing over a shoebox of receipts or equally disorganized electronic files. There are tools out there that can scan and organize your receipts — Shoeboxed, for instance, just requires you to stick your receipts in an envelope and mail them off. There’s a fee for such services, of course, but if you aren’t going to get to it yourself, the fee is much lower than you might pay to your CPA for a similar service.

Check Your Resources

Trying to claim a particularly difficult tax deduction or credit? Check your professional associations or other resources for guides to doing just that. Many groups offer a regularly updated tax guide for those bumps in their industry, especially focusing on how to appropriately claim specialized deductions. For instance, if you are a building contractor, you may be claiming one of the various energy efficiency credits related to projects you’ve built over the last year. The paperwork can be complicated, but many local contractor organizations offer their own version of a guide to that particular tax credit.

Your personal resources can also make the process easier. If you work with the same tax preparer year after year, he may send you a simplified document to fill out about the changes in your business over the last year, rather than requiring you to fill out every form from scratch. You’ll still have to have all your paperwork but you can avoid having to calculate much more than what your bookkeeping software can already provide.

Image by flickr user alancleaver_2000

Tags: cpa, irs, receipts, tax preparer, taxes
Posted in Accounting and Taxes | 3 Comments »

15 Small-Business Tax Deductions

March 22nd, 2010 :: Steven Fisher

As Tax Season is upon us we thought we would share some great tax deduction advice we came across on Entrepreneur.com:

Auto expenses: You may deduct mileage, parking fees and tolls for business use of your car. Most people take the standard mileage rate deduction because the record keeping requirements are less burdensome, but actual expenses often yield a larger deduction, says Fawaz. Keep track of the mileage, odometer start and finish for each trip, destination, the starting point and business purpose. “The actual expense method often yields a higher deduction, including repairs, insurance, maintenance and depreciation for the business portion of use,” Fawaz says.

Equipment, furniture and supplies: Look at your purchases and ask your tax preparer to run the calculations to see if you should expense it or depreciate it. But don’t overdo it, says Clare Wherley, a certified financial planner and certified public accountant with Lassus Wherley in New Providence, N.J. “I’ve often had to caution the entrepreneur that buying a piece of equipment just to get a tax deduction isn’t good business sense.”

Professional and legal expenses, and association dues:Professional and legal expenses are deductible, but if the costs are part of startup expenses, you may need to amortize the cost over 60 months. Association dues may include a portion for political contributions or lobbying, so those can’t be deducted, Fawaz says, noting the association must disclose this amount or percentage.

Expenses to start up or expand your business: The biggest mistake in deducting expenses to start up or expand your business is failing to make an election to amortize or deduct these expenses in the first year. A paper election is required to be attached to the return, stating your intention to amortize them, Fawaz says. Otherwise, the expenses become nondeductible until you sell or liquidate the business.

Professional publications and software: Here again, the common error is taking the cost as an expense instead of amortizing, Fawaz says. Software licensing fees, for example, should be capitalized and amortized over 60 months unless it has a life of only one year, such as an annual maintenance agreement. Professional publications should be amortized over the subscription period if prepaid.

Gifts and advertising: Client gifts are deductible up to only $25 per gift. And if you advertise, deductions taken for costs that cover multiple-year contracts must be spread over all the contract years, Wherley says.

Home office: If you have a legitimate home office, don’t be afraid to deduct it. To qualify, the room must be used exclusively for business. It can’t double as a spare bedroom or toy room for your kids. You can deduct a portion of rent, utilities, insurance, taxes, maintenance, professional cleaning, depreciation and interest. State tax deductions will vary.

Telephone and internet: Any dedicated services for your business are deductible. If you use your home or personal cell phone for business, you may only deduct the portion used for business purposes.

Education and training: You may deduct the cost of continuing education or certification for the business you’re already in, but education that qualifies you for a new line of business is not deductible, Fawaz says.

Bad debts: A bad debt is only deductible if the income has been declared. Wherley offers this example: A business owner bills a client in December 2009 and declares that income on his 2009 return. By the end of 2010, he realizes he will not be paid by that client. So in 2010, he can take a bad debt deduction for the income previously declared. If that income was not declared, he can’t take the bad debt deduction.

Interest on loans: You can fully deduct interest on loans for your business. If you have a loan from a relative, make sure it conforms to IRS rules.

Entertainment and travel expenses: Keep excellent records here, and keep a log of who you met, why, where, when and for what business purpose. “Only 50 percent of meals and entertainment costs is deductible, and none of the costs associated with country club memberships are deductible,” Wherley says.

Taxes and Social Security: State taxes paid are a healthy deduction; just don’t allow yourself to be surprised by how high Uncle Sam’s bill may be. “I often advise setting aside 50 percent of net income to cover everything,” Wherley says. “If there is something left over, the refund is that much sweeter.”

Insurance: Insurance premiums for the business for one year or less are deductible currently, while excess prepaid premiums are deductible in subsequent years, Fawaz says.

Charity: Save all your receipts, and don’t forget to keep track of contributions of inventory or property.

Tags: cpa, irs, receipts, tax preparer, taxes
Posted in small business | No Comments »

How are dating and searching for a job the same? Pt 2

March 22nd, 2010 :: Robin Ferrier

by Allison Kapner

… Continued from my last blog post.

Step 1: Finding the date, finding the Job….What’s the Difference? NOTHING!

My last blog examined some of the different media outlets for job and mate searching. We continue that discussion below with other sourcing techniques used.

Networking

http://www.flickr.com/photos/hikingartist/ / CC BY-ND 2.0

Your Personal Networks
The best way to land a job (or a man or woman) is through friends, colleagues, family and people you know. Network, network, network. If you’re looking for a job, tell people you know and trust. (The trust part is important if you already have a job and don’t want your employer to know you’re looking.) Likewise, if you’re single, make it known you’re open to dating. Don’t act desperate, but realize that you never know who people know or what other circles they run in.

If you do make a connection – job or personal – through your network, manage the process wisely: Make sure that you remove the person who set you up. You don’t want it to be awkward for the middle-man if things don’t work out. I’ve gone out with many friends of friends, colleagues of friends, etc. and I’ve never ruined a friendship. The same goes for job searching. If your uncle sets you up with a company that you end up not liking, remain professional and leave things on a positive note.

And if you’re the connector: Make the intro and then REMOVE yourself. Otherwise it will backfire. I guarantee it.

Happy Hour and the “scene”
More often than not, when you go to happy hour you will meet like-people that can help you for dating and job hunting. (It’s foolish to approach a happy hour – and happy hour – as merely a social situation.) Take advantage of this. Again, you never know who someone’s network is. Plus, many bars have specials, so it can be easy on your wallet. How can you use this to your advantage in your job search? Find out where the company you want to work for is located. Chances are the neighborhood bar is their after work spot. Make it yours as well.

The more obvious happy hour – job search connection are the myriad of professional networking events (as well as social meet ups and groups) that happen every day. Take advantage of people looking for the same things as you!

When you’re starting to feel down, you MUST remember for both, it’s all about…

….Timing
When all else fails, just remind yourself, it’s all about timing. Being in the right place at the right time when the other person/people are in the right place at the right time can and will change your life both personally and professionally.

…Believing
The second you feel defeated in your job search (or dating), you’re not setting yourself up for the next best thing. Keeping the optimism and faith that it will work out will be your strength when it seems that you’ll never get the call for the interview… or find that perfect mate. You must believe they will both come (see timing).

…Smiling
A smile says a gazillion words and can be all it takes to secure your next move.

Allison Kapner is a Relationship Manager in Career Services at the Johns Hopkins University Carey Business School where she is responsible for building partnerships with employers to ultimately create job and internship opportunities for students and alumni. She also advises and coaches students on job search techniques and brings a unique corporate expertise to assist candidates, as her past experience was as an Executive Recruiter in financial services in New York City.

Tags: Allison Kapner, job hunt, Job Search
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10 Great Project Management Applications

March 22nd, 2010 :: Steven Fisher

So many projects, so little time. As small business owners, we have to wear many hats. In addition to doing what we set out to do as entrepreneurs, we’re also the sales person, the manager, customer support, and the accountant all rolled into one.

For many people the thought of doing projection planning is annoying, boring and usually overwhelming. Project planning task is difficult to handle without good tools to work with. When we came across this list in Freelance Folder we knew we had to share.

Here is a list of 10 great project management applications from Freelance Folder:

Project Management Applications

From Freelance Folder: “Fortunately, there is a huge variety of project management tools available to help freelancers and small business owners with their project planning needs. Some of the very best tools require a substantial financial investment on the part of the freelancer. However, there other tools that may not be quite as full-featured that will work fine for a freelancer who is just starting out or for a very small business owner.”

Here is a list of ten project management software applications that are either free (or available at a very low cost) with a brief description of each:

jxProject–Free application that includes many of the features expected of a project management package such as: task dependencies, resource scheduling, timeline formatting, and resource leveling. (The tool is free because it includes advertisements. A version without advertisements is available for $20.00.)

dotProject–Open source tool designed to help you structure and schedule your work. For user questions, there is forum (manned by volunteers) that can be accessed from the main site. Announcements are made through the blog, which can be accessed from their website.

GanttProject–Free, open source software lets you create Gantt charts, assign resources, create PERT charts, and plan collaboration. The tool has a very helpful user forum and blog.

Open Workbench–This open source software bills itself as a direct competitor to Microsoft Project. In fact, the software’s website includes a detailed comparison between the two packages. Open Workbench is sponsored by CA, the manufacturer of the Clarity family of products (which are not free).

SugarCRM –The community edition of this software is released under the GNU General Public License (GPL) v3. This product includes a user forum and there is even a conference. (There are two additional products from this company that are not open source and do cost money.)

ProjectPier–This open source software lets you manage messages, tasks, and milestones. You can also upload and manage files. The website includes a helpful forum and a blog listing planned updates.

OpenProj–Open source software package distributed under the CPAL license. It is comparable to Microsoft Project in that it lets you produce a wide variety of charts such as Gantt and PERT. This software is owned by Serena Software Incorporated, which also sells Projects on Demand.

Project HQ–This open source software package compares itself with Basecamp. Features include the ability to track projects, milestones, and create task lists and tasks. The website does include a user forum. I did notice on the download page that there are no stable releases of this software yet, which means that all versions are in development.

Clocking IT–This free project management tool was designed by a consultant for consultants. It helps you track how much time is spent on each project, although it can produce Gantt charts and other reports. The website includes a user forum and a wiki.

TaskJuggler–This open source package is released under the GNU GPL version 2 license. With this tool you can manage tasks, resources, and costs that are related to your projects. It also supports risk analysis and flexible working hours. Support is available through Google Groups.

If you didn’t find the project management system that you need in this list, you may find it in our earlier list of project management tools. There are also project management alternatives for freelancers with greater needs.

What Tools Do You Use?

Do you use any of these project management software tools above to manage your business? Are there any we missed?

Share your thoughts and experiences in the comments.

Posted in Uncategorized, UnintentionalEntrepreneur | 28 Comments »

Shopping for a Bank, Part III: The Huge National Bank

March 22nd, 2010 :: Monika Jansen

In this third installment of my three part series on bank shopping, I share with you what I learned about small business banking at a national bank. The difference: money. I’m not being facetious. You’ll see what I mean in a minute.

In case you—gasp!—missed it, I’ve already written about Access National Bank, a small community bank with five locations in northern Virginia, and BB&T Bank, a regional bank in the Mid-Atlantic and Southeast. My goal with this bank shopping exercise was to figure out which type of bank would be most convenient, easiest, and most fun to do business with. I’ve got my answer.

From Steve Rhodes on Flickr

Since my husband and I use Bank of America (BofA) for our personal savings and checking accounts, I thought I’d look into using them for small business banking. Their reach stretches around the world, and, thanks to the recession, they are now the proud owners of Merrill Lynch. Anyway, instead of visiting a BofA branch to talk to a manager, I decided to research them online. As soon as I started scoping out small business banking information, I was asked if I wanted to chat live with a BofA rep. Sure, why not, I thought. I was immediately asked by “Jewell” if I’d like to open an account. And so the hard sell began. (The following are just excerpts from our chat.)

Monika: I’m actually bank shopping, so I’m not ready to open an account yet. What sets BofA apart from the competition? In other words, why should my small business bank with you guys?

Jewell: Our customers have the piece [yes, that is how she spelled it] of mind knowing that BofA is a strong, secure bank during these difficult financial times. Also, BofA is one of the world’s largest financial institutions, serving individual consumers, small businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services.

Monika: Why should a small business bank with you? What kind of service can I expect to receive?

Jewell: We provide unmatched convenience in the United States….Also we are among the world’s leading wealth management companies and a global leader in corporate and investment banking….We also serve clients in more than 150 countries…..We offers [again, yes, that’s how she spelled it] industry-leading support to more than 10 million small business owners through a fleet of innovative, easy-to-use products and services.

And so the conversation went. I asked a question, and I got long, canned responses from Jewell. Their “innovative” products and services, dubbed the Online Business Suite, all come with a price tag. Seriously? I need to pay you to make my life more convenient? They do have an online community for small businesses, but honestly, if I need an opinion about something I just turn to my own network. The kicker: if I wanted personalized service, I could request to have a client manager assigned to me.

So back to my point at the beginning of this post: the difference with BofA comes down to money. They have the money to track me looking around their site, and they have the money to pay someone to chat with me live online. They have lots of extra money thanks to the fees they charge their customers. They have money because they’re so big. But so what? I would obviously be a number to them.

Oh, and I’ve only kinda made a decision about which bank to use. I loved both Access and BB&T, so it looks like it’ll go to the coin toss. May the best man win.

Tags: national bank, small business, small business banking
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