Tax Code Burdens Small Business Owners, Leaders Promise Change |  |
- Tax Code Burdens Small Business Owners, Leaders Promise Change
- Update on Legal Issues in Affiliate Marketing – #AMDays
- 8 Common Characteristics of Successful Business Owners
- A 30 Point Checklist for Your Startup
- 10 Steps to Become a Self-Employed Consultant
| Tax Code Burdens Small Business Owners, Leaders Promise Change Posted: 18 Apr 2013 04:00 PM PDT Tax time may finally be behind small business owners, but the pressure remains. Small business owners face a tax time crunch much more than once a year, and new data from the National Small Business Association confirms just how much filing taxes can slow down operations. According to a report from the National Small Business Association (PDF), small business owners are putting nearly four full work weeks toward completing their taxes annually. For nearly half of all small business owners, they’ll spend at least 80 hours completing tax work related to their business. Combine that with another one-third of all owners who spend an additional 72 hours organizing payroll tax information, and some business owners can be devoting more than 150 hours of their time exclusively to taxes. NSBA surveyed small business owners to quantify how much time is spent on taxes each year and is using that information to add to an ongoing debate on Capitol Hill that aims to simplify the U.S. tax code. The legislation seeks to make it easier and less confusing for small business owners and individuals according to the NSBA report. To that end, recently Sen. Max Baucus and U.S. Rep. Dave Camp co-wrote an article for The Wall Street Journal in which they attempt to reassure small business owners, specifically, that they’re working toward bipartisan reform. They write:
The NSBA study determined that small business owners, indeed, are often confused by the ever-changing U.S. tax code and that contributes to much of the time spent filing taxes each year. The NSBA report notes that 55 percent of all small business owners who responded to the NSBA survey say the current tax code is administratively burdensome, and 45 percent said the same of financial burdens taxes place on their businesses. Tax Photo via Shutterstock The post Tax Code Burdens Small Business Owners, Leaders Promise Change appeared first on Small Business Trends.      |
| Update on Legal Issues in Affiliate Marketing – #AMDays Posted: 18 Apr 2013 01:45 PM PDT Editor's Note: Here’s another installment in our series of coverage from the Affiliate Management Days conference – this one on the new legal landscape of affiliate marketing. This series of articles is on topics of interest to businesses that offer affiliate programs. More coverage of #AMDays.
Gary began with an attention grabbing statement that "as an affiliate manager, you are a trusted advisor." As such, affiliate managers need to know enough about the legal landscaping of affiliate marketing to speak wisely to it and provide resources for more information. This scope extends to online marketing as well. The highlights of his session are provided below. Deceptive Advertising
Copyright and TrademarkThe first step is to dismiss the myth that everything on the Internet is free. Copyright is defined as an original work of authorship. This includes images and content. You cannot grab something online and use it in your promotions. Photographers are very aggressive when they see their photo online. Be careful and mindful here. Trademarks are less stringent. You can use another person's trademark without permission but you can't do it in a way that is confusing. Affiliate Marketing ContractsGary also talked about legal issues in affiliate marketing contracts, and what these contracts should include. I know I will be double checking future contracts for all my online services, not just affiliates: Contract terms to include:
PrivacyAnd of course, there could not be a legal discussion about online marketing without addressing privacy. It is important for affiliate managers to understand the FTC Fair Information Practice Principles. Rules may vary based on audience and products. Here are some key components.
Social MediaGary also discussed social media. You are responsible for your affiliates as well. So be sure your affiliates are playing by the rules. Below is a quick summary – but do your research.
Behavioral TrackingHe lightly touched on changes in the industry and a demand for more user control over behavioral tracking. This could have a huge impact on our affiliate industry because cookies could get impacted as well. Many browsers are implementing a browser application allowing consumers to choose “Do Not Track.” It is a voluntary process. Many browsers are developing within their systems. IE does defaults. Safari blocks 3rd party cookies. This could have a big impact on affiliate marketing since we are cookie based. It is important to follow this issue. Gary's quick summary was my favorite: Don't be creepy when you are online. And I would add: just try not being creepy over all. Note: Gary’s remarks are for general information purposes only and should not be taken as legal advice. Please consult your own attorney for legal advice specific to your situation. The post Update on Legal Issues in Affiliate Marketing – #AMDays appeared first on Small Business Trends.     |
| 8 Common Characteristics of Successful Business Owners Posted: 18 Apr 2013 11:00 AM PDT Over the past 15 years I've started several companies and helped thousands of others. In doing so, I've seen tremendous successes. I've also witnessed tremendous failures. In assessing what I've seen, I've identified the following 8 common characteristics of those entrepreneurs and business owners who have enjoyed the most success. If you're not doing any of these, now's the time to start. 8 Characteristics of Successful Business Owners1) Have a Crystal Clear VisionIf you don't have a crystal clear vision of the company you are trying to create, you can't possibly create it. Figure out exactly the type of company you are trying to build. For example, in five years how many customers will you have? How many employees? What will your revenues be? 2) Have a Written Strategic PlanYour vision is your dream. Your plan details how you will achieve that dream. Your plan should identify what you must accomplish in the next twelve months to get on the right path to achieving your long-term vision. Among other things, your plan must document your product strategy, marketing strategy and human resource strategy. 3) Set Shorter-Term GoalsThe most successful entrepreneurs and business owners also set shorter-term goals. Specifically, they identify what they and their company need to achieve in the next quarter, monthly and week to meet their annual goals. They also meet with their teams to ensure all employees understand these goals and work together to achieve them. 4) Ongoing EducationTo succeed requires continual education. This includes reading books and magazines (offline and online), attending events and networking with other successful entrepreneurs and business owners. Having business mentors is another great way to get ongoing education and advice. 5) Satisfy Your CustomersIf you can't satisfy customers, your business will fail. Always keep your customers top of mind. Focus relentlessly on their needs; not just on your needs. 6) Be a Great MarketerIf you are truly satisfying your customers, you will grow through word of mouth. But in most cases, you want or need to grow even faster. So make sure you have a comprehensive marketing plan in place. Of particular importance is your promotion plan, or your plan to attract new customers. The key to your promotion plan is to leverage as many marketing channels as possible. For example, if you are attracting new customers from radio ads, pay-per-click advertising, partnerships, direct mail and newspaper ads, you will get many more new customers than competitors who may only leverage one of these channels. 7) Be Laser-Focused in Your WorkAs an entrepreneur or business owner, you are constantly faced with new opportunities and ideas. The key to your success is staying focused. By creating plans and setting (and sticking to) goals, you will achieve more. That's not to say to avoid all new opportunities. Rather, make sure you focus on hitting your short-term goals first, and then set up periodic meetings (perhaps monthly) to consider new ideas or opportunities. 8) Never Give UpThe life of an entrepreneur or business owner isn't easy. There's always more work to be done. And on any given day there may be significant ups and downs, such as landing or losing a big client. Never give up. Build up a tolerance to the downs and realize that if you keep focusing on attaining your goals, you will. We should all cherish the opportunity we have to run a business. By following these eight practices listed above, you can get the most out of your business and achieve the success you desire. Success Photo via Shutterstock The post 8 Common Characteristics of Successful Business Owners appeared first on Small Business Trends.     |
| A 30 Point Checklist for Your Startup Posted: 18 Apr 2013 08:04 AM PDT So you want to start a business – congratulations! Once you get over the initial excitement, it's time to break down the process of launching your startup into manageable chunks. You might get overwhelmed with the sheer number of items on your to-do list. But not to worry; I’ve broken it down into the primary tasks you need to do now, and those that you can defer until later. What You Need to Do NowDo the following tasks either before launch or during the early days of your startup. 1. Determine viability Be brutally honest. Your startup needs to be something you can make a profit doing or delivering. Ask yourself: would you buy it? Run the numbers: will customers pay enough so that you can cover costs and make a profit? Here is a list of 29 more questions to ask, attributed to noted investor Paul Graham. 2. Create a business plan It's easy to convince yourself that you don't need a business plan, but creating a business plan with financial projections forces you to think through details. Keep your plan a living breathing thing that you revisit and adapt regularly. 3. Figure out the money Most startups take a lot more time to get off the ground than you expect. Know where your living expenses for the first year will come from (savings, a job, spouse’s income, etc.). If you need financing for the business start investigating as soon as possible. 4. Get family behind you Spend time to make sure your spouse and other close family ‘buy into’ your startup. You’ll have enough challenges without resistance from family. 5. Choose a business name You want a name that will stick in your target audience’s heads. And it shouldn’t already be taken by another company. Do Google searches and use a corporate name search tool to see if the name you have in mind is unique. Check at the state and Federal level. 6. Register a domain name Get a matching domain to your business name. An AOL email address or a website with free hosting and a name like mysite.wordpress.com makes it seem like either (a) you are not running a real business or (b) you don’t plan to be around long. 7. Incorporate / figure out legal structure Incorporating your startup can protect your personal assets. Talk over structure (corporation, LLC, sole proprietorship) with your attorney and accountant. 8. Apply for an EIN An Employer Identification Number (EIN) helps you separate yourself from your business. You'll need it if you plan to incorporate your business or open a business bank account. Plus, with it you can avoid giving out your social security number (an opening to identity theft). EIN numbers are free; apply online. 9. Investigate and apply for business licenses You may need one, if not several, business licenses for your startup, depending on your industry and where you are located. Most licenses are at the state or local level. Here in the United States, the SBA has a helpful business license & permits tool. 10. Set up a website Get your website up and running as soon as possible. Today, it’s necessary for credibility. Even if your product is not yet built, you can start with company information. 11. Register social media profiles Getting set up on the major social media channels (Facebook, LinkedIn, and Twitter, to start) will make marketing on them later easier. Also, it’s important to reserve your brand as a profile name. Try Knowem.com to reserve the names. 12. Start your revenue stream Start generating revenue as soon as possible. At the early stages of a startup there is never enough money – resist the temptation to wait until things are “perfect.” Oh, and get your lawyer to create any customer contract forms necessary. 13. Rent retail or office space If you've got a brick-and-mortar business, you’ll need to sort this out early. If you plan to run a retail business, pay attention to foot traffic, accessibility, and other factors that will affect the number of people that will walk in your store. EXCEPTION: If you don’t have a brick and mortar or retail business, then hold off renting an office as long as possible to avoid saddling your startup with lease payments. 14. Order business cards As a startup founder, you'll be doing a lot of networking, so order plenty of business cards. They are inexpensive enough that you can reorder them later if things change. Without cards you lack credibility. 15. Open a business bank account It's all too easy to use your personal bank account to pay for business expenses, but it becomes a gnarl to untangle later. 16. Set up your accounting system Once you have your bank account set up, choose an accounting program. Start as you intend to go. Few things will doom your business faster than books that are a mess. 17. Assign responsibilities to co-founders If you have one or more founders, it's imperative that you decide who will do what up front. Put it in writing. Co-founder disagreements can destroy your business. What You Can Do A Bit LaterWhile you don't want to put off these tasks too long, they don't need to be checked off your list before you launch. 18. Upgrade your smartphone and choose apps As an entrepreneur you are going to be on the go – a lot. I can’t emphasize enough how useful a good phone with good business apps can be, in running your startup. Get a credit card swipe device to accept payments, too. 19. Find free advice Your local SBA, SCORE, and other small business resources can provide you with free advice, access to business templates, and other tools. 20. Consult your insurance agent and secure coverage Depending on the type of business you're starting, you may need insurance of one kind or another, like liability, workers' comp, or health insurance, especially if you hire full-time staff. 21. Hire your first employee Depending on the type of business you have, you may need staff from day one (retail) or you may be able to outsource to freelancers, interns, and third-party vendors for a while (service and tech businesses). Just remember, trying to do everything yourself takes you away from growing the business. 22. Line up suppliers and service providers Finding a good source of inventory is crucial, especially in certain types of businesses (retail, manufacturing). Beyond inventory, line up good reliable suppliers and service providers so you don’t have to sweat the details. 23. File for trademarks and patents The best thing to do is consult an attorney early about the need for patents, especially. Get the advice early. Then you may be able to defer filing for a while, depending on the nature of your business. 24. Work your network Reach out to former co-workers and colleagues, as well as friends and family. Don’t pressure them to buy your products or services. Instead, tap into them for introductions and help with other things on this startup checklist. 25. Don’t waste time on “partnerships” Be careful about wasting time on “business partnership” discussions. Your business won’t be attractive to potential partners unless and until you start making headway. Focus your precious time to make sales and get customers. 26. Refine your pitch You need a good elevator pitch for many reasons: potential investors, customers, prospective new hires, bankers. If you can’t persuasively and clearly pitch your business, how can you expect key stakeholders to buy in? 27. Refine your product, and marketing and sales approach As you go along you will learn more about the marketplace. Use customer feedback to refine your product and service offerings, and your go-to-market approach. 28. Secure your IT Whether you're a tech company or not, you likely have sensitive data on computers and devices that you want protected. Protect it from intrusions and disasters. Back it up! IT problems can derail a fledgling company. 29. Get a salesperson or sales team in place In many startups the business owner starts out as the chief sales person. But to grow you need a dedicated sales function, so you can focus on activities other than day to day sales. 30. Get a mentor It's easy to work "in" your business rather than "on" it, as Michael Gerber tells us in The E-Myth. A mentor who has succeeded in your industry can provide you with priceless advice and serve as a sounding board. Your checklist might be longer than this, but organizing what needs to be done before you launch and what you can take care of down the road makes it easier to prioritize your tasks. The post A 30 Point Checklist for Your Startup appeared first on Small Business Trends.     |
| 10 Steps to Become a Self-Employed Consultant Posted: 18 Apr 2013 05:00 AM PDT Have you ever wondered how to be a consultant? What does a consultant do? Well, the answer is simple – a consultant consults. The answer, though true in its basic sense, is much too vague. If you want to become a self-employed consultant, you need to have a better idea about the business and the way to set it up. Let's try to define the role of a consultant. The task of a consultant is to provide advice to an individual or organization about matters in a specific niche. Still sounds vague; right? You need to dig a little deeper into the area before you plunge in to establish your business as a consultant. Below is a step-by-step guide to help you start off as a self-employed consultant. How To Be a Consultant: 10 Steps to Self EmploymentStep 1: Identify the Niche in Which You Have Knowledge and ExperienceYou may have an interest in computers. However, this does not mean you can become an independent computer consultant (though it can give you a head-start in this field). Knowledge and experience coupled with interest is the only way to begin. If you have knowledge about computers (hardware or software), have worked with these for a considerable period of time and have the latest detailed, information about them, you can plan to start a computer consulting business. Step 2: Acquire the Certifications and LicensesSome consulting businesses do not require formal training and certifications (e.g., gardening consulting). However, if you are planning to work as an accounting consultant, you need to get professional certifications from recognized accounting institutions. Also, consider the licensing requirements to start a consulting business. The local or state legal guidelines may require you to get a particular license to work as an independent consultant in certain specialties. Step 3: Decide Your Short and Long Term GoalsIf you excel in a niche that has a good prospect, such as business consulting, computer consulting, career consulting and so on, you may paint a rosy picture of clients waiting for your advice within a week of starting your consulting business. It’s not magic. If you have such unrealistic expectations, you are sure to be disappointed. Every business takes time to grow and become known and established. If you lack the time and effort to start and establish a business, you may end up headed towards failure. Step 4: Choose Your Target MarketIf no one pays for your ideas and advice, your business will face failure. It will also face the same result if the recipients of your ideas do not have the money to pay you. The first thing you need to do is to decide whether you will advise individuals or companies. Every niche in the consulting business provides these options. For example, if you are working as a career consultant, you may help individuals plan their careers. You may also work with a large corporation to help the employees excel in their chosen fields. Step 5: Research Your Target MarketIndividuals and organizations need consultants for a number of reasons. A tax consultant can help a millionaire plan his/her taxes. A computer consultant can help the employees of a large company learn software basics. A human resource consultant can help a big business implement a change in a policy. After you determine the target market that will hire you for your expertise, you need to find out the various ways in which you may help them. This will help you market your consulting business. You need to tell your clients why they need you. Step 6: Consider a Home OfficeIf your local laws permit this, it can work to your advantage in more ways than one. You don't spend any money to buy or rent an office space to start your business as a self-employed consultant. You don't need to pay for utilities separately. You don't need to pay for a regular commute. Along with the money, you also save time and energy when you work out of your home. You may acquire new premises after you have established your business and employed associates; but more on this later. Step 7: Build Your NetworkIf no one knows you and you know no one in your field, you may find yourself in the midst of a disaster soon. It is important to start building your network as soon as you have decided to be a consultant. A strong contact base ensures that you have the sources to find work. A professional network, coupled with a social network, can help you market and advertise your business. References are also important ways to find work in the niche. Rely on your initial contact base to build your network. Step 8: Fix Your Fees and the Way to Bill ClientsAs a beginner, you may not receive high fees as a consultant. Your charges increase as you become known as a consultant. Keep in mind your credentials and experience as well as market conditions, your target group and your competitors when you fix your fees. Also, decide how you will bill clients. Hourly billing may seem to be a convenient method; the problem is many clients think that you charge too much for your time. It is best to use the project-based billing method when you start your consulting business. Step 9: Arrange for Advertising and MarketingYou are not selling a house which, by the way, is much easier than selling your advice. Many of your clients may not be even aware that they need your ideas and advice. How do you market and advertise something so difficult? Believe it or not, you have a lot of choices – print media, cold-calls, online ads and many others. Before you choose any avenue to advertise, decide your budget. If the costs go out of hand, the chance of success of your business plummets. Newsletters and brochures, advertisements in niche-specific journals, websites and blogs offer the best options. Step 10:Determine Whether You Need to Outsource Certain TasksYou may find it easier to handle all tasks of your business on your own when you start. But after your consulting business is up and running, you may need the help of others and you may decide to employ people. Check both legal and tax details before you do this. You may also outsource some tasks that do not require your immediate attention. Make sure that the tasks are not connected to your consulting business. For example, you can outsource auditing for a career consulting business but not when it is your niche. Consulting Photo via Shutterstock The post 10 Steps to Become a Self-Employed Consultant appeared first on Small Business Trends.     |
Gary Kibel (pictured), Partner at 
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