Summer Financial Checklist For Small Business Owners |  |
- Summer Financial Checklist For Small Business Owners
- Google Ads May Be More Valuable Than You Thought
- Angela Benton of NewMe Accelerator: Bringing Your Dream to Launch
- Been Working My Way Up
- eBay Beats Forecasts with 23 Percent Growth in Q2
| Summer Financial Checklist For Small Business Owners Posted: 20 Jul 2012 01:00 PM PDT Now that summer is well under way, our focus is often on beaches and barbecues, not necessarily business finances. Yet the mid-way point is the perfect time to review the financial and tax health of your business.
Financial planning is an ongoing process for small business owners and taking actions now can help you lower your 2012 taxes and put you in a stronger financial position for the year ahead. Here are seven steps to take once we've hit the midpoint: 1. Meet With a Tax Advisor Too often small business owners wait until it's time to file their returns to start thinking about taxes. Have you ever met with a CPA or tax preparer and been told you could have lowered your tax payments if only you had acted earlier? Make a mid-year appointment when you'll both have more time to discuss your financials. Most importantly, you'll still have plenty of time to act on his or her suggestions within 2012. Or you can register for a free Small Business Tax Training webinar to get a handle on commonly missed deductions, available tax credits, and more. 2. Assess Your Estimated Tax Payments for 2012 Now that we've hit the midway point, review what your business has made year to date and your forecast for the rest of the year. Then assess your estimated tax payments to avoid underpayment penalties, as well as overpayments (you could be doing more with that money). Adjust your final two estimated tax payments for 2012 as needed. 3. Re-evaluate Your Business entity Many small businesses start out as sole proprietorships or partnerships, but then eventually transition to another entity. For example, if your business is not incorporated, you may want to consider incorporating (either as a C Corp, S Corp, or LLC) to shelter you from some financial risk and possibly save money on taxes. Sometimes an entity is formed with one income target in mind, and you might need to reconsider the entity for a different income level. Failing to adjust your business entity for your revenue can be a costly mistake. Discuss the different legal entities with your CPA, so you can determine the right entity for your situation and the right time to make the change. 4. If You Have an S Corporation, Review Your Salary and Distribution Requirements If your business is structured and taxed as an S Corporation, make sure your salary and distribution payments are at the optimal levels. Too often, S Corp owners don't properly balance the amount the S Corporation pays them as salary vs. distribution. The result can be either higher taxes or an increased audit risk. 5. Take Charge of Your Recordkeeping To make the most of your business tax deductions, you'll need accurate, comprehensive records. If you haven't been keeping track of your business expenses, get caught up now. If you find yourself struggling with this administrative task, look for a new solution ? whether it's offloading the task to someone else, investing in a technology solution (like a receipt scanner or iPad app), or dedicating 30 minutes each week to expense tracking. You'll be grateful come tax time. 6. Plan Equipment Purchases Take advantage of a first-year expense write-off for equipment placed in service by the end of the year. Business owners and self-employed individuals are allowed a first-year depreciation deduction of 50% of the cost of qualifying property acquired and put in service in 2012. For 2012, the maximum amount that can be deducted under Section 179 is $139,000 (inflation adjusted). Based on current law, the limit is set to fall to $25,000 next year. While we can't predict what will happen in the future, if you're considering taking advantage of this tax deduction, you should do it in 2012. 7. Plan for Retirement If you haven't done so already, take time to set up a retirement plan or reassess your contributions. Contributing to an IRA, Keogh, simplified employee pension (SEP), or other retirement plan is an essential way to plan for your future and reduce your taxable income. The specific rules, contribution limits, and deadlines vary by plan. Make an appointment with your CPA to discuss the best retirement option for your business. I know it seems like the ink has barely dried on your 2011 taxes, but remember that the best time to plan for your taxes and financial health is 365 days a year. Dollar on Beach Photo via Shutterstock From Small Business Trends |
| Google Ads May Be More Valuable Than You Thought Posted: 20 Jul 2012 11:00 AM PDT Who ever said that nobody clicks online ads? Many companies might dismiss Google advertising because they think such ads are ignored by online consumers. But a new study released by internet marketing company WordStream illustrates that that's not always the case. In fact, paid search listings are beginning to take up more and more real estate on Google search pages, as you may have noticed. And even though organic search results still yield more clicks overall, those who are ready to buy are actually almost twice as likely to click sponsored search results than an organic search results. WordStream distinguishes these consumers by their keyword phrasing. For example, those who are ready to buy something use keywords with high commercial intent like "toaster oven reviews" or "best internet marketing software." Those who use enter searches like "coffee shop" or "when is the election" are less likely to be looking to buy something and were found to be less likely to click sponsored search results. WordStream's graphic at the end of this article illustrates many other statistics that businesses might find useful or interesting. For example, on an average Google search page, the three sponsored ads at the top of the page yield about 41% of the page's clicks, and they take up a large portion of the above-the-fold space. Almost half of Google users in a recent survey couldn't distinguish the paid ads from the regular search results if there wasn't a right column. So for small businesses that have dismissed using Google's pay-per-click ads, it might be time for a second look. Many companies choose to rely heavily on search engine optimization to gain pageviews organically, but for those who want to reach customers who are ready to buy, sponsored search results could help you land a whole new set of customers. “If your goal is to try to actually sell products or services online, I think the research shows pretty clearly that paid search advertising isn’t optional," said Larry Kim, Founder/CTO of WordStream, Inc. "Sadly, I think that people who think otherwise are just stuck in denial.” Of course, Google offers many different advertising options, which are covered in less detail on the graphic below. See WordStream's post for more information about their study.  From Small Business Trends |
| Angela Benton of NewMe Accelerator: Bringing Your Dream to Launch Posted: 20 Jul 2012 08:00 AM PDT If you’ve developed an idea that simply needs a little refining but is close to launching, then I’d like to introduce you to Angela Benton, Founder of NewMe Accelerator. NewMe Accelerator can help you develop a high powered connection in Silicon Valley and provide that much needed push prior to launch. Tune in as Angela joins Brent Leary to discuss how NewMe Accelerator can help you bring your dream to life. * * * * *
Angela Benton: NewMe Accelerator is a startup technology accelerator for entrepreneurs who are under represented in the technology industry. If you look around and see who is successful in running businesses in the technology space, more than likely, they are white males. Our mission and goal is to diversify the industry. Small Business Trends: How does NewMe Accelerator help? Angela Benton: We actually bring people to Silicon Valley and incubate them in a sense. While they are working on their startup ideas. They pitch to investors at the end of the program. What we're really helping them do is get a connection, a really high powered connection in Silicon Valley. That is really what it's all about. Small Business Trends: How important was it for you to make the physical jump to Silicon Valley? Angela Benton: It's very important for us to be based in the heart of Silicon Valley. We're all tech savvy. We're on social media and know a lot of people, however, most of them we never actually met in person. You know it operates totally different in Silicon Valley. I don't do a lot of phone calls. I do a lot of in person meetings. People want to actually meet with you and talk with you. They know you and they met you in person. When you look at a lot of the barriers to entry and, of course, access to capital is another one, but it is access to a good network of people that can help you. Whether it is an investor, an advisor or whether you are building a team. Small Business Trends: How do you go about selecting who gets into the program? Angela Benton: We have a lot of different criteria we look at. It ranges from the actual product, the idea, to the entrepreneur's background, to other kinds of criteria that is in our "secret sauce." There are great programs like YCombinator and 500 Startups. But one of the things that is most important to me is not that we are trying to replicate exactly what those folks are doing. We want people in our program that are good for NewMe. Small Business Trends: Do most folks come in with a fully baked idea? Or do they come to hone the idea and prepare for potential investors? Angela Benton: We are early stage. But early-stage is such a huge category. Ideally, we like to have those that already have something developed, that they need to refine, or that they are very, very close to launching. We can help them refine it and bring it to launch. The program isn't the best for someone who woke up yesterday and said, “I have an idea for a website or a web application. But I just need someone to help me get it started.” Small Business Trends: What kind of things should entrepreneurs expect if they were accepted into the program? Angela Benton: The first week is really fun. It’s a whirlwind. We have a welcome event that has historically been at Google, where they are required to give a two minute high level overview of what they are working on. They do so in front of an audience and in front of judges. The judges give them feedback throughout the program; for some that can be stressful, for some it is exhilarating. For us as a program, it's a way for us to measure where you are when you come into the program. Small Business Trends: What role are Google and other sponsors playing in the success of NewMe? Angela Benton: All of our sponsors are really our partners so we don't take sponsorship that is from any and everybody. We really want people who believe in what we are doing, but can put some skin in the game. Google has been a tremendous help whether it is helping us launch this financially or basically giving us access to resources. They are sending out developers. Developers' advocates to actually work one on one with the Founders. They have helped tremendously. The same as with our other sponsors Andreessen Horowitz and everyone else. Small Business Trends: What are some of the challenges when it comes to getting this kind of program up and running? Angela Benton: One challenge that I did expect, but I thought I had mitigated, was the fact that people see us as a charity. Even though I did not form a non-profit and we stayed a for-profit, some folks see us as that way because we are helping people. I don't know if it's because we're helping minorities or if it is just because we don't make financial investments. The investments we make are to house people, get basic transportation, access to food, and mentorship in the network. What we like to say is, “We put sweat equity into the Founders.” Small Business Trends: What are some of the differences that you have consciously put in place that makes NewMe a little different? Angela Benton: In addition to our program being solely focused on folks who come from different backgrounds, it is residential. You don't go and rent an apartment and then come to our office on X,Y and Z day. You are totally immersed the whole time. As a result, you are developing your own kind of network while you're there. Small Business Trends: What is next for a company that graduates? Angela Benton: That is why our application process is very important. We really look for people who have personal ambition. We can give people access to investors and information, we can give them a place to live and live out their dreams. So what is next for that company is what they make it. This interview is part of our One on One series of conversations with some of the most thought-provoking entrepreneurs, authors and experts in business today. This interview has been edited for publication. To hear audio of the full interview, click the right arrow on the gray player below. You can also see more interviews in our interview series.
From Small Business Trends This posting includes an audio/video/photo media file: Download Now |
| Posted: 20 Jul 2012 05:00 AM PDT
Normally, when I talk about a cartoon I explain where it came from, what inspired it, or what was happening when I thought of it. But for today’s cartoon, I’m going to point out a tiny but significant detail in the background that you probably didn’t even really see. Look out the window behind the dog, see that city back there? It’s crucial. First, it sets the scene in that the office you’re looking at is probably high up in another important building to secure that view. Secondly, the buildings are detailed just enough to be read as buildings instead of a stack of boxes or something else, but vague enough to be located pretty much anywhere. And lastly, the idea that you’re seeing the city outside the window suggests a successful executive’s office instead of a more mid-level employee’s office without a view. And that all reads (hopefully) and influences the rest of the image in less than a second before you decode the dog, the other cast member, and the caption. A few simple lines in the background can make all the difference between a good cartoon, and a great cartoon. And talking dogs never hurt either. From Small Business Trends |
| eBay Beats Forecasts with 23 Percent Growth in Q2 Posted: 20 Jul 2012 02:30 AM PDT E-commerce remains an important component of online business, and eBay is one of the most successful companies in the industry, so much so that experts have often considered its success an indicator of the overall market. Here’s more about its growth and what it may mean overall. E-commerce ExplosionTaking giant steps. E-commerce giant eBay showed a 23 percent increase in revenue, reaching $3.4 billion in the Q2 ahead of projections. The biggest part of that growth occurred in eBay’s Marketplaces, which grew by 15 percent to $16 billion internationally. TechCrunch Shop ’til you drop…the phone. Another substantial part of eBay’s growth also came from what the company’s CEO John Donahoe calls a “staggering surge” in mobile shopping. In January, eBay was anticipating $8 billion in gross mobile sales over 2012 on either smartphones or tablets. Mobile shopping may be important to your e-commerce sales this year, too. All Things Digital Options AboundThere’s success in simplicity . Famed VC Fred Wilson maintains the real success of e-commerce, and especially mobile e-commerce, lies in its simplicity. Wilson said he has seen the same thing in the companies where his firm invests its funds that eBay’s numbers are showing–that mobile commerce is exploding. A VC PayPal takes a swipe at mobile. Mobile shopping is expanding beyond Ebay’s core e-commerce business. PayPal, the online payment solution eBay acquired in 2002, anticipates $10 billion in mobile payments this year, some including the company’s PayPal Here option, which allows small businesses and other users to process credit and debit transactions via smartphone or tablet. Fierce Mobile Content Tools & TacticsBill Me Later, Please! Another new feature PayPal’s introducing will likely have great impact on e-commerce for small businesses as well. Bill Me Later offers credit to online shoppers, allowing them to pay later, usually by a few months, while paying the merchant immediately. Bill Me Later is not only likely to increase Pay Pal’s revenue, but also revenue for online merchants who use PayPal to receive payments. Reuters Lending sellers a hand. The e-commerce explosion is attracting financing options for online merchants, too. Online lender Kabbage is offering that financing primarily to online businesses selling through eBay, Amazon, Yahoo!, Shopify and Etsy. Time Savvy strategies spur growth. Just like brick and mortar retail, e-commerce requires a strategy. Here are some tips for growing your e-commerce business, whether you use eBay or other sites and tools to reach your customers. Share your own strategies for e-commerce below. Practical E-commerce From Small Business Trends |
Small Business Trends: Can you tell us what NewMe Accelerator is?
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