Business Planning

Business consultants, coaches, facilitators, and mentors

Posted in: ABR Handouts, Blog, Business Planning, Leadership by Mallory Malloy on September 12, 2011 | No Comments

Business Consultants- A consultant is usually an expert or a professional in a specific field and has a wide knowledge of the subject matter. A consultant usually works for a consultancy firm or is self-employed, and engages with multiple and changing clients. Thus, clients have access to deeper levels of expertise than would be feasible for them to retain in-house, and may purchase only as much service from the outside consultant as desired.  A consultant does things for others as well as by giving them advice on how to make their business more successful.

Business Counselors- A counselor is also an expert like the consultant but limits his involvement to giving advice only, that is, he tells the client how and what to do.

Business Coaches- Coaches also help people do things for themselves but not in the same way as counselors. They may have no expertise or knowledge of a specific technical area. They partner with clients in a thought-provoking and creative process that inspires them to maximize their personal and professional potential. They may challenge the client’s internal beliefs or help to remove internal stumbling blocks that limit the client’s potential. Coaching regards the client as the expert in his/her life and work and believes that every client is creative, resourceful, and ultimately “whole.”

Business Facilitators- The facilitator’s job is to support everyone to do their best thinking and practice. To do this, the facilitator encourages full participation, promotes mutual understanding and cultivates shared responsibility. By supporting everyone to do their best thinking, a facilitator enables group members to search for inclusive solutions and build sustainable agreements.

Business facilitators’ work in business, and other formal organizations but facilitators may also work with a variety of other groups and communities. It is a tenet of facilitation that the facilitator will not lead the group towards the answer that he/she thinks is best even if they possess an opinion on the subject matter. The facilitator’s roles are to make it easier for the group to arrive at its own answer, decision, or deliverable.

Business Mentors- A mentor is someone with more experience and “seasoning” than the protege that they counsel.  A mentor serves as a trusted confidante over an extended period of time, usually free of charge. Why do they do this? First and foremost as a way of giving back to their community and to society at large. They may do it to develop their skills as a teacher, manager, strategist, or consultant. And a true mentoring relationship also works in both directions—they learn about new ideas from their protege just as the protege learns timeless wisdom from them.

But whatever the benefits to the mentor, the benefits to you, the entrepreneur, are even greater:

• Where else are you going to turn? There’s no boss any more to turn to for advice or direction—maybe not even any employees yet. You’re flying solo. But you don’t have to. Everybody needs a good reliable sounding board, second opinion, and sometimes just emotional support.

• They’ve “been there, done that”. Learn from others’ mistakes and successes. They don’t have to have experience in your particular industry. They don’t have to be up on the latest trends or technology—you’ve got other sources for that. Their role is to share with you lessons from their experience in the hopes that you can learn them a bit more quickly and easily.
• It’s (usually) free. If you’re on a tight budget, that’s a major factor. While good coaches and consultants may be able to offer some things that a mentor doesn’t, it comes at a price, usually of several hundred dollars a month. Mentors, though, are readily available free of charge through a number of organizations.
• Expand your social network. Your mentor, being an experienced businessperson, is likely to have an extensive network, and can offer you access to far more senior decision-makers than you currently have. And they will be far more willing to open that network up to you than some casual acquaintance from a networking meeting.
• A trusted, long-term relationship. Your mentor has no ulterior motive—no service or product to sell you. That combined with their experience creates a good foundation for trust. And as the relationship develops over time, that trust can grow even stronger. Also, your time with them becomes more and more efficient as they become more and more familiar with you and your business.

Optimizing for Local Search

Posted in: ABR Handouts, Blog, Business Development, Business Planning, Technology by Mallory Malloy on July 10, 2011 | No Comments

You have probably noticed that most searches now bring up local business results on Google SERPs (Search Engine Results Pages) even if you do not put the location in the search query. Now, if you are asking the question, “Why are the local results showing up if I did not search for anything local?” you are asking the wrong question. The right question would be; “Why do I not show up in that list?”

Recently, Google started putting more emphasis on local search results and universal search. “Local Results” is when Google displays local businesses relevant to your search query. For example, if you search for “Plumber”, you will see that local businesses from Google Maps are displayed right above the fold along with website results. If you do another search for “Plumber Miami”, you will get the same results if you are actually in Miami that is. What does this mean?

This means that Google is doing something, which they have not done for the past 8 years; they are displaying local results based on your computer’s IP address and location. The reason is simple; it’s more relevant. After extensive research and analysis for billions of searches, they came to the conclusion that most users are searching for local results for certain search queries, like services for example.

This will better illustrate the point. If you search for “Internet Marketing”, you might be looking for just info, so no local results are displayed. However, if you search for “Internet Marketing Services”, you will see that local results do show up. This is because you are looking for “services” so you would prefer someone local and close to you. At least that’s what Google thinks. And at least, you are given the option not to choose the local results.

How does this affect small business?

Small local businesses have more power now to get leads from Google Searches. All you really need to do is submit your business to Google Local. Of course, some optimization does help in this process and if you have multiple locations, you are going to get more visibility. By doing this, Google is providing a unique and vital service to the user. Remember the days of yellow pages where you had to look through thousands of pages to find a service or a plumber? Not anymore; you can search for just plumber without even writing your city and you are instantly shown results, businesses, reviews, phone numbers, and websites.

For previous Anderson Business Roundtable topics click here.

Non-Profit Organizations

Posted in: ABR Handouts, Blog, Business Planning by Whitney Recker on | No Comments

A nonprofit organization (abbreviated as NPO), is an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals.   Examples of NPOs include charities (i.e., charitable organizations), trade unions, country clubs, trade associations and public arts organizations.  Not all non-profits are charitable.   Most governments and government agencies meet this definition.  NPOs are partially exempt from income and property taxation.

Ownership is the quantitative difference between for- and not-for-profit organizations.  For-profit organizations can be privately owned and may re-distribute taxable wealth to employees and shareholders.  By contrast, not-for-profit organizations do not have private owners.  They have controlling members or boards, but these people cannot sell their shares to others or personally benefit in any taxable way.

While they are able to earn a profit, more accurately called a surplus; such earnings must be retained by the organization for its self-preservation, expansion and future plans.  Earnings may not benefit individuals or stake-holders.  While some nonprofit organizations put substantial funds into hiring and rewarding their internal corporate leadership, middle-management personnel and workers, others employ unpaid volunteers and even executives may work for no compensation.  However, since the late 1980s there has been a growing consensus that nonprofits can achieve their corporate targets more effectively by using some of the same methods developed in for-profit enterprises.  These include effective internal management, ensuring accountability for results, and monitoring the performance of different divisions or projects in order to better benefit from their capital and workers.  Those require satisfied management and that, in turn, begins with the organization’s mission. 

NPOs are often charities or service organizations; they may be organized as a not-for-profit corporation or as a trust, a cooperative, or they may be purely informal.

Sometimes they are also called foundations, or endowments that have large stock funds.  A very similar organization called the supporting organization operates like a foundation, but they are more complicated to administer, they are more tax favored, and the public charities that receive grants from them must have a specially determined relationship.

Foundations give out grants to other NPOs, or fellowships and direct grants to participants.  However, the name foundations may be used by any not-for-profit corporation — even volunteer organizations or grass roots groups.

NPO’s like country clubs are different.  They exist for the benefit of their members.

In the United States, nonprofit organizations are formed by filing either bylaws and/or articles of incorporation in the state in which they expect to operate.  The act of incorporating creates a legal entity enabling the organization to be treated as a corporation under law and to enter into business dealings, form contracts, and own property as any other individual or for-profit corporation may do.

Nonprofits can have members but many do not.  The nonprofit may also be a trust or association of members.  The organization may be controlled by its members who elect the Board of Directors, Board of Governors or Board of Trustees.  Nonprofits may have a delegate structure to allow for the representation of groups or corporations as members.  Alternatively, it may be a non-membership organization and the board of directors may elect its own successors.

A primary difference between a nonprofit and a for-profit corporation is that a nonprofit does not issue stock or pay dividends, and may not enrich its directors.  However, like for-profit corporations, nonprofits may still have employees and can compensate their directors within reasonable bounds.

The two major types of nonprofit organization structure are membership and board-only.  A membership organization elects the board and has regular meetings and power to amend the bylaws.  A board-only organization typically has a self-selected board, and a membership whose powers are limited to those delegated to it by the board.  A board-only organization’s bylaws may even state the organization has no membership, although the organization’s literature may refer to its donors as “members”.  The Model Nonprofit Corporation Act imposes many complexities and requirements on membership decision-making.  Accordingly, many organizations have formed board-only structures.  The National Association of Parliamentarians has raised concerns about the implications of this trend for the future of openness, accountability, and understanding of grassroots concerns in nonprofit organizations.  Specifically, they note that nonprofit organizations, unlike business corporations, are not subject to market discipline for products and shareholder discipline over their capital; therefore, without membership control of major decisions such as election of the board, there are few inherent safeguards against abuse.  A rebuttal to this might be that as nonprofit organizations grow and seek larger donations, the level of scrutiny rises, including expectations of audited financial statements.

After a recognized type of legal entity has been formed at the state level, it is customary for the nonprofit organization to seek tax exempt status with respect to its income tax obligations.  That is typically done by applying to the Internal Revenue Service (IRS), although statutory exemptions exist for limited types of nonprofit organizations.  The IRS, after reviewing the application to ensure the organization meets the conditions to be recognized as a tax exempt organization (such as the purpose, limitations on spending, and internal safeguards for a charity), may issue an authorization letter to the nonprofit granting it tax exempt status for income tax payment, filing, and deductibility purposes.  The exemption does not apply to other Federal taxes such as employment taxes.  Additionally, a tax-exempt organization must pay federal tax on income that is unrelated to their exempt purpose.   Failure to maintain operations in conformity to the laws may result in an organization losing its tax exempt status.

Individual states and localities offer nonprofits exemptions from other taxes such as sales tax or property tax.  Federal tax-exempt status does not guarantee exemption from state and local taxes, and vice versa.  These exemptions generally have separate application processes and their requirements may differ from the IRS requirements.  Furthermore, even a tax exempt organization may be required to file annual financial reports (IRS Form 990) at the state and federal level.  A tax exempt organization’s 990 forms are required to be made available to public scrutiny.

The New Credit-Card Rules: What to Expect

Posted in: Blog, Business Planning by Whitney Recker on March 10, 2011 | No Comments

On Feb. 22, 2010 the Credit Card Accountability Responsibility and  Disclosure Act (CARD ACT) took effect.  Below are the key changes that the new law puts forth, along with some notable exceptions that could still allow consumers to get in trouble with their credit cards.

Finance Charges, interest-rate hikes and notifications

• No rate increase for the first 12 months after opening an account.
• Rate increases can only be applied to new charges.
• Annual and application fees cannot exceed 25% of your initial credit line.
• No more double-cycle billing
• A six-month minimum promotional-rate period.
• No more over-limit fees, unless the card holder opts in.
• No fees to make credit-card payments online or over the phone, unless you make a payment on your due date.
• Must give 45-day notice of pending rate or fee hikes or any other significant changes to credit-card terms.

Exceptions, caveats, loopholes:

Rate hikes are allowed if you’re more than 60 days late with a payment. Some banks have already found a way around the rate-hike issue, by increasing card users’ regular interest rates to as high as 29.9%and refunding a part of that rate for each month that the customer pays on time.  Double-cycle billing, although prohibited, can technically still exist for credit cards that don’t have grace periods.

Billing Statements, Payments and disclosures

• Your due date should be the same date each month.
•  Billing statements must be sent 21 days before the due date.
• Payments are considered on time when received by 5 p.m. on the due date or the next business day after a holiday or weekend.
• Payments above the minimum must be applied to the highest-rate balance first.
• Each monthly statement must include information on how long it would take you to pay off your balance if you make minimum payments only and the total you’ll pay, including interest and principal; and how much you need to pay each month in order to pay off your balance in 36 months and the total you’ll pay, including interest and principal.
• Statements must also include a warning that by making only minimum payments you will pay more interest and it will take you longer to pay off your debt, as well as a toll-free number to call if you want to be referred to a credit-counseling service

Exceptions, caveats, loopholes:

If you make a purchase under a “deferred-interest” plan the company may let you choose to apply extra amounts to the deferred-interest balance.  Otherwise, for two billing cycles before the end of the promotional period, your entire payment must be applied to that balance.

Investing Today in Tomorrow’s Future

Posted in: Blog, Business Planning, Startups by Whitney Recker on March 9, 2011 | No Comments

Many individuals are unaware they can move their existing traditional IRAs, ROTH IRAs or 401(k) accounts into Self Directed Individual Accounts where they can invest in their own company and/or real estate without incurring early withdrawal penalties or income taxes.  For example, if you have $100,000 in your 401(k) and want to use this money to invest in your own company and/or real estate you are immediately going to have at least a 10% early withdrawal penalty. In addition to the early withdrawal penalty, you will all so have to pay income taxes that could exceed 30%.  Your 401(k) has now been reduced by 40% percent, leaving you with only $60,000 to invest in your company and/or real estate. The Edgar Allen Group can help minimize these tax losses.

Call today and learn how The Edgar Allen Group can help you regain control of your financial future

• Learn how to turn your traditional IRA, Roth IRA or 401(k) into a Self Directed IRA or 401(k).

• Use Your Self Directed 401 (k) to invest in your own company.

• Use your Self Directed IRA to invest in Real Estate and other investment property.

• Roll your Self Directed IRA into your Self Directed 401(k) or vice versa. 

The Edgar Allen Group, Inc.

513-474-6600

Did You Know?

Posted in: Accounting, Blog, Business Planning by Whitney Recker on March 8, 2011 | No Comments

The IRS does not initiate communication with taxpayers through e-mail.  If you do receive this type of request, it is most likely an attempt from identity thieves to get your private tax information. 

The latest scam going around involves the electronic tax payment system. The system was setup by the IRS to allow people to pay taxes online, which is convenient.  Frankly, it has been a smashing success. Alas, the scammers have figured out a way to use it to their benefit.

The scam works like this.  You get an email from the “Antifraud” division of the IRS.  The email states that someone has tried to you a tax number assigned to you and deposited cash in the account. The IRS has then frozen the money, but you can get it back by clicking on the provided link. The page that pops up then asks you to verify your identity by providing a lot of sensitive personal information the scammer can use to steal your identity.

Anything you receive in your inbox that purports to be from the IRS is not legitimate.

Tax document checklist

Posted in: Accounting, Blog, Business Planning by Whitney Recker on March 2, 2011 | No Comments

Taxes are no fun, but they are inevitable. So we’re here to show you how to save time and eliminate some of the stress that goes along with tax season, starting with our Tax Document Checklist–a list of some of the key paperwork that you’ll need.

There is NOTHING more frustrating than sitting down to do your taxes and realizing that you are missing an important document. Here’s a simple way to be sure that doesn’t happen to you…use this simple checklist to track your tax documents as they arrive so you know exactly what you have and what is still missing.

Print it out now and pop it into your 2010 tax folder so you have it handy the minute your first tax document arrives.

Income Related Documents

   Form W-2 for all employers for whom you and your spouse worked during the year
   Unemployment compensation: Forms 1099-G
   Miscellaneous income including business income, rent, etc. Forms 1099-MISC
   Partnership, S Corporation, & trust income: Schedules K-1
   Retirement Plan Distributions (from IRAs, pensions, annuities, etc.): Forms 1099-R
   Social Security/RR1 benefits: Forms RRB-1099

Investment Related Documents

   Interest income – Form 1099-INT
   Dividend income – Form 1099-DIV
   Proceeds from the sale of stocks, bonds, etc. – Form 1099-B

Homeowner Related Documents

   Mortgage interest: Form 1098
   Sale of your home or other real estate: Form 1099-S
   Form 1099-C if your lender cancelled or forgave a portion of your debt. Normally considered taxable income, debt forgiveness on your principal residence is exempt from federal taxes through 2012. (You’ll need Form 982.)

Miscellaneous Documents

   State and local income tax refunds: Form 1099-G
   Tuition statement - Form 1098-T

Often Overlooked Tax deductions

Posted in: Accounting, Blog, Business Planning by Whitney Recker on March 1, 2011 | No Comments

Don’t you love beating the IRS? We get a perverse pleasure from not paying taxes, so we put together some tips to help you pay less to the IRS.

• Points you pay for a mortgage or loan for improvement of your home.
• Unemployment and disability taxes your state withholds.
• Expenses related to seminars you attend for business purposes. Deductible items include registration fees, travel, lodging and 80% of the cost of your meals.
• Travel expenses you incur when checking on income-producing property.
• Cost of telephone, postage, office supplies and automobile operation (trips to and from broker).
• Books, magazines, and newsletters on investment, financial, or tax matters, including appropriate daily papers (e.g., The Wall Street Journal, The New York Times).
• Out-of-pocket expenses incurred in changing jobs. Include the cost of printing résumés or traveling to an interview.
• A portion of health insurance for the self-employed.
• Deductible items on December credit card statement, even if paid in the following year.
• Medical expenses.
• Charitable contributions.
• Miscellaneous business expenses.

Remember: You can only deduct business and miscellaneous deductions if they exceed 2% of your adjusted gross income.