Strategic Planning for Owners and Managers

All companies are facing challenges as the country faces the most serious economic times in recent history.

Take time now to sit down with your team. For large companies, this might mean your department heads and partners; for smaller companies, your bookkeeper, and your salesperson. Don’t forget outside advisers – your accountant, lawyer, insurance and benefit agent, financial planner and possibly your banker. And don’t forget your family; what affects the business effects you and your family.

A few things to consider:
 

Employees are either part of the solution or part of the problem.  If certain employees are part of the problem, you are better off without them. Reassess your need for all the employees you have; don’t keep all your employees because you’re trying to be a nice guy. If you don’t reduce a few, it could lead to everyone being out of a job.

As for salespeople, be sure your compensation program is fair to both the company and salespeople. Some commission structures generously compensate the salesperson, but short the company. If it isn’t a win for both sides, it doesn’t work.
             

Use financial statements and your bank as helpful tools. Don’t produce financials to put them in a drawer, or because you must have them for the bank. If you don’t understand your financials, sit down with an accountant and learn how they can help you manage your business. If you’re not sure your financial statements are credible, consider asking a third party - someone other than your accountant - to verify them.

Meet with your bank to ensure they are solid, and that they aren’t thinking your company would be better elsewhere.

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Choosing an Entity Type Which is Best for You and Your Business.

If you have just made the hardest decision of opting to go into business for yourself or if you have owned your own business for years, having a working knowledge of how your overall tax bill is determined can cost or save you thousands. Making the right decision for your business will be critical to both your short terms success as well as eventually how comfortable your retirement might be. To this end, setting up the right entity from day one is your best bet to ensure you pay no more taxes than are legally necessary. The job of your most trusted adviser, your CPA, is to assist and guide in this process being sure to ask questions and contemplate issues you might not have even known to be a concern. As a business owner or running your business, the options will appear to be daunting but these parameters will do much to “lift the veil’ on whether you want your business to be an S Corporation or an LLC.

Limited Liability Company.
Limited Liability Companies/LLC’s are legal in most, if not all, states where their respective legislatures approved them.  LLC’s allow for some flexibility options that are not allowed in some other entity selections as well as some liability limitations that are not otherwise available for professional service companies, those where professionals, such as physicians, are required to have a professional license in order to practice.

Advantages of being an LLC include:

• Ease of formation. LLC’s do not require a Board of Directors or an election of Officers.
• Anyone or entity can have ownership in an LLC. This allows other corporations or those who are not citizens of the United States to be owners.
• Unlimited number of owners.

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When a relationship between an employee and employer breaks down irretrievably a compromise agreement can be the only way to deal with the situation and prevent a possible complaint to an Employment Tribunal.     

A ‘compromise agreement’ is a legally binding agreement following the termination of employment. It usually provides for a severance payment by the employer, in return for the employee agreeing not to pursue any claim they believe they may have to an employment tribunal. Quite often, the compromise agreement will also deal with the notice element in the contract of employment and may provide for a “payment in lieu of notice”.  Employers are now increasingly using compromise agreements as a mechanism for preventing possible future complaints to a tribunal, especially in redundancy situations.  Compromise agreements are recognised by statute and are the only way a claim can be legally binding without tribunal proceedings having been initiated.  The employee must seek the advice of an independent solicitor before the agreement becomes binding.  The solicitor giving the advice must also sign the agreement and certify that the appropriate advice has been given.

Why is a Compromise Agreement Necessary?
The use of compromise agreements in redundancy situations is used mainly if an employer has not complied with the law in making redundancies (perhaps through failing to consult properly, failing to use fair selection criteria etc) where an employee can complain to a tribunal that the redundancy was unfair. This can be done after the redundancy and could result in an award of compensation or even reinstatement.  The only way an employer can be sure that an employee will not complain to a tribunal after redundancy is to persuade them to sign away their right to do so.

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The glitz and glamour of all the Christmas and New Year festivities are now over and summer is a long way away – have you counted the cost of the festive cheer?

For many employers, January is a hard month to get through and absenteeism has a direct impact on your bottom line. 

Have you reviewed who didn’t turn up on Christmas Eve or any of the due days over the Christmas period or on when you re-opened on 5 January and why they didn’t and also what impact this unreliability had on your business?

Current research by the CIPD (Chartered Institute of Personnel and Development) showed that on average an employee takes off 8 days a year and absence costs £666 per employee.   

The cost of absence can be felt in different ways.  For example, it can affect everything from quality of customer service to the speed of product development – issues that may have a negative impact on your sales figures.  If also affects employee morale as those in work shoulder the burden of their colleagues days off.

A CBI/AXA Absence Survey in 2008 showed that 1 in 10 absences are not genuine and 60% of employees have said that they fake sickness to extend a holiday.        
Everyone agrees that sick people need time off work, but as an employer you need to deal with two serious and expensive challenges – bogus sick days and helping employees on long-term illness return to work when they are fit to do so.

1 day sickies are the most common and if left unmanaged this can lead to an increase across your business and employees are more inclined to try it for themselves as they see their colleagues ‘getting away with it’.

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CPA Teaches Your Tax Payment/Filing Responsibilities

Paying Your Taxes/Extensions…The IRS Requires us to Pay as We Go

Since World War II, the IRS has been a pay as you go system. Prior to that time, the IRS simply collected their monies at the end of the year when one’s annual tax return was filed. Many entities by virtue of their tax treatment as flow through entities do not pay any income taxes when the returns are filed but rather the income is communicated to the partners via a K-1 which is a part of the return. The entity’s partners are then responsible for reporting their portion of the earnings on their personal/appropriate returns. Thus there are many entities such as Partnerships, LLC’s, LLP’s, an S Corporations for which no income taxes are due when these returns are filed. 

C Corporations are responsible for paying their taxes as they go and they do not have the ability to pay all of their taxes at year end and still avoid assessed penalties and interest. Thus, it is critical to tax plan several times a year to determine the ultimate amount of year end liability due and to take appropriate measures to plan accordingly. For S Corporations and individuals we suggest that you tax plan at least twice annually. At that time it is also advantageous to review a client’s internal finances and obtain their projections of profits for the rest of the year. By utilizing this information as well as by being aware of their personal return issues, itemizations, exemptions, etc. you are able to get an estimate of what your taxable income and your tax will be.Both the IRS and states require you to pay as you go thus requiring you to pay enough in estimates for the taxes due on the profits/taxable income generated.

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If you are considering investing in a franchise then you will need to become familiar with a whole host of terms, of which franchise agreement is just one. This should be one of the very first terms you become familiar with because it is effectively the document that will govern your business relationship with the franchisor and determine how you are to develop your entrepreneurial goals in the future.

About The Franchise Agreement

No matter which franchise you invest in, you will be expected to sign a franchise agreement because it is the legal document that binds you to the franchise and actually gives you the right to run your own business under it as well. It will detail the obligations that you have to the franchisor just as it outlines the obligations that it has to you as a franchisee.

Legal representatives of the franchisor and the franchisee often draw up franchise agreements. This is to ensure that both parties are treated fairly and have defined legal rights within the agreement. It is not unusual to have one but is actually essential if you want to ensure that you get what you want and need out of your investment.

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Coco Chanel was a female entrepreneur living in a world that was dominated by men in the early 20th Century. She was undoubtedly light years ahead of her time and helped women everywhere by giving them the inspiration and drive to break out of traditional female roles within the home and branch out on their own. Chanel was one of the first women to buck the male conventions of business, and as such will go down in history as an important figure in women’s history, but what exactly did she do?

The Early Coco

Gabrielle Bonheaur Chanel was born on August 19, 1883 in a poorhouse in Auvergne, France. Her mother worked there to try and feed the family. However, Chanel only knew her mother for some six years before she died and was left in the care of equally poor relatives. Chanel was determined not to spend her life working her fingers to the bone as her mother had and began making different entrepreneurial plans at the age of 18.

Coco, as she became known during a brief spell as a café singer, realised that the only way for a woman to make it on her own was to make connections, which she happily did through two wealthy men, a French military man and an English industrialist. She had affairs with both and seemed to capture their hearts, but it was their wallets that they gladly opened to give her the start she so desperately wanted on her way to becoming an entrepreneur.

Coco Fashion In 1910

With the support of both men and their contacts, Chanel was able to open a millinery shop in Paris in 1910. It soon became popular with the ladies that followed fashion. However, this success was not enough for Chanel, who soon became one of the most popular designers in Paris. In fact, many experts argue today that it was Chanel and her entrepreneurial aspirations that made fashion as big an industry as it is today.

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If you are looking for an entrepreneur to aspire to be like or an individual with a lifestyle that you would absolutely love to lead then you now need to look no further. Larry Ellison fills all the criteria as laid out above. Not only is he one of the most powerful and richest men in the world but he has also got to where he wanted to go the hard way. In fact, sheer hard work enabled him to overcome his poor early start in life.

Larry Ellison’s Early Life

Lawrence Joseph Ellison was born in New York on August 17, 1944. At the time, his father had abandoned his mother, who was herself an unmarried Jew. Larry Ellison did not actually meet her until the age of 48 though because an aunt and uncle adopted him at birth. They lived in Chicago, which is where the entrepreneur grew up. His adoptive parents were not poor but they lost their fortune in the Depression. As he grew up, this made sure that Ellison was determined not to follow in their footsteps.

Larry Ellison was always a gifted student when he put his mind to it but, unless a subject interested him, he paid little attention. As such, he managed to get to the University of Illinois but left after just two years. A year later, he enrolled in the University of Chicago but quit after having his first taste of computer programming. He was hooked and knew exactly what he wanted to do for a living.

The Entrepreneurial Path

Larry Ellison moved to California shortly after dropping out of university and worked hard at several companies in order to eventually get a job at the Ampex Corporation in the early 1970s. It was there that he first designed the program that would ultimately make him a billionaire. He worked on a project that aimed to complete a comprehensive database for the CIA and during the process, the entrepreneur invented Oracle.

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If you wish to run your own business under a major brand name then you may want to become familiar with the term “franchise consultant”. Franchise consultants are essential in the business sector today because they play a proactive role in the franchising of businesses for franchisees and franchisors alike. They offer numerous advantages in business for both parties and can help to place the right budding entrepreneur into the right opportunity. Before you seek franchise consulting help, you should understand the role of franchise consultants.

What Is Franchise Consulting?

Franchise consulting is not to be confused with franchise brokering. The latter offers franchises for sale on an indiscriminate commission basis, whereas the franchise consultant works with franchisors and franchisees alike in a much more proactive way. He or she will actively work for an individual who wishes to invest in a franchise to find the best possible one.

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You may be looking to run your own business in the near future, and if this is the case then franchising is a very real option for you. Starting a franchise does not have the same level of risk attached to it as starting a business from scratch providing that you choose the correct business to invest in. However, there is much to consider before you start a franchise and knowing where to start may prove rather problematic.

Where To Start

Finding the ideal franchise for you is undoubtedly the key to business success when you want to invest. Starting a franchise should not be about luck, but instead it should be about making a solid business decision based on what is best for your entrepreneurial success. Finding the right place to start can be incredibly difficult so here are some tips to help you assess the correct factors, and ultimately make the right decision to start a franchise that suits you:

1. Assess Your Skills – You need to know exactly what is required of you personally when starting a franchise because it is incredibly difficult to keep a business going when you do not have the capacity or personal skills that equip you to do so. You should be completely suited to the opportunity for the best chance of success.

2. Assess Your Financials – Do you have enough capital to put into the business when you start a franchise?

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If you have entrepreneurial aspirations then you may have considered owning a franchise to boost your business credentials and get your career off to a flying start. After all, many budding entrepreneurs consider starting up their own business and opening a franchise when they first start out. Everyone has to start somewhere. Having said that though, there are many advantages and benefits to opening a franchise that go above and beyond those that starting a business from scratch can give you.

Franchise Vs. Starting A New Business

When it comes to the decision to open a franchise versus starting your own business, many people choose the latter. They like the idea of building their own business up from the ground and earning recognition on their own. However, they do not realize that you can earn just as much recognition when owning a franchise as well. In fact, the rewards far outweigh the benefits providing that you choose the right franchise to open.

If you would like to know exactly what benefits that owning a franchise can give you then please take a look at the list below. The eight points illustrated here will clearly define why opening a franchise should ultimately be your first choice:

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What Are Franchise Fees?

The first expense to a new franchise owner (franchisee) is the money paid to the parent company.  This is the franchise fee.  The prime benefit of becoming a franchisee is instant name awareness.  People are more likely to have their oil changed at a national chain rather than “Bob & Frank’s Lubetoreum.”  The parent company (franchisor) buys television, radio and print ads, driving customers to their local franchise locations.  You will enjoy the reputation of representing a highly recognizable company while being free to run your own show.

How Much Will I Pay?

Work-from-home franchises, often called mobile businesses, are generally at the low end of this spectrum – with fees as low as $10,000 or even less.  Franchises that fall into this category might include the following:

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If you aren’t creating a monthly newsletter you are missing out on an opportunity to market to your list. Newsletters help establish your credibility, keep you top of mind for your prospects and allow you to make special offers to your list. Please note a paid newsletter needs to be informative and doesn’t always offer the same sales opportunities. However a freebie newsletter can have ads, special offers and promotions and more.

If you are running a monthly newsletter, it is important to make sure you are getting the most out of it. Here are some things you should keep in mind month after month as you work on your newsletter.

1. Determine what your readers want - If you aren’t covering topics they are interested in, no one is going to want to read it. And although your newsletter should promote your business, it’s also meant to establish your credibility and build your relationship with your prospects and customers. Be sure to discuss topics of interest and value for your customers and prospects.

2. Personalize your newsletter – there are hundreds of newsletters circulating on the Internet and in the mail. You need to make your newsletter stand out from the crowd. Making your newsletter uniquely you will make a difference. So be real. Feel free to include personality and emotion in your newsletter. Create a template with a look and feel that your prospects will associate with you and get to know.

3. Make it look good - people will first judge your newsletter by appearance and if it doesn’t look professional and compelling they won’t bother reading it. Also, remember to keep it brief. Use bullets and appealing headlines. And include graphics.

4. Ask for feedback and opinions from readers - include your readers in the process. Invite them to provide feedback and then actually implement some of their suggestions.

5.

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The agriculture business is a thriving and booming business industry.  In the past a farm was run by a family unit or by an individual.  Today, you will find that many farms for sale are actually run by a team of specialists that manage all the different assets of the agriculture business.  There are many different basic types of agriculture supply companies, and you are likely to find numerous agriculture businesses for sale when considering venturing into this area of investment opportunities.

Decide Which Type of Agriculture Business You Want to Buy
There are numerous types of agriculture businesses that you can invest in.  Some of common types of agriculture businesses for sale include poultry farms, egg farms, beef cattle, dairy farms, pork, corn supply, cotton, wheat and even some tobacco farms.  In the past, farms primarily provided food and supplies to surrounding communities and often farmed more than one type of product.  For example, the primary farmers might have a small orchard, a few dozen dairy cattle, a pen full of pigs and even a variety of garden vegetables.  The tradition of farming with multiple products is a practice of the past.  You will still find some local farmers that offer a wide variety of products but traditionally farmers are turning to specialized farms with one or two specific products.  When you begin your search for the agriculture businesses for sale consider what product or agriculture supply you want to specialize in.

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Today’s advanced technology has caused consumers to want instant gratification. When they want something, they want it right there and then. That is one of the reasons vending machines have become so popular.

If you are sure that you want to buy a vending business, there is no better business to get into. You can see it for yourself. There are vending machines everywhere you look.

Whether you know it or not, Vending machines are big business and in order to buy a vending business, you really need to get to know the vending machine distributors.  These are the people that you buy vending machines and vending businesses from. Generally the distributor buys from the manufacturer and then sells to you.  Most vending machine distributors have a large variety of vending machines, and even if they don’t have a particular machine, they know where to get it.

Most of the time you get a better price on vending machines by working with a distributor rather than the manufacturer, because the distributor buys large quantities and gets deep discounts, which he then passes on to the route owners. A vending machine distributor may also know of established routes for sale.

What to Look for When Choosing a Distributor
Make sure the vending distributor has a well-organized business.  If the distributor does not appear to be well organized, it is doubtful that he will be able to give you quality service. For example, a disorganized distributor who works with many vending business owners may take days or even weeks before he can fix your broken vending machine. Keep in mind most vending distributors not only sell vending machines but also sell the products inside them, so you will need to compare pricing to see which distributor offers the best deal.

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Oprah Winfrey is one of the most recognisable faces on TV today. She has been such for some time, but recently the entrepreneur was recognised as one of the most powerful women in the world. Given her humble beginnings, her likeable personality and her philanthropic interests, she is certainly a beloved figure in America. However, she is also an esteemed entrepreneur who could certainly provide an amazing example for budding entrepreneurs, male and female alike, from all over the world.

Humble Beginnings

Oprah’s past is well documented as she has been extremely candid about her childhood and the motivation she has derived from those dark days. Her mother and father were both teenagers when she was born on January 29, 1954 in an impoverished part of Mississippi. Living hand to mouth, Oprah Winfrey grew up in abject poverty. She also experienced a horrendous rape at the tender age of 9. However, she was not to escape the area until the age of 14, when she was sent to Tennessee to live with her father after giving birth to an infant who lived only a few days.

It was in Tennessee that the entrepreneur received her first break. Determined that his daughter would do better than her mother had, her father made her education a priority. Although she attended Tennessee State University, Oprah already had a spot as an anchor on the local news at the age of 19. It was to be the first of many such roles that would ultimately lead to the conception of The Oprah Winfrey Show.

Oprah As A Media Mogul

In January 1984, The Oprah Winfrey Show hit the airwaves and quickly became a massive hit amongst old and young alike. Oprah soon became a household name in Chicago, where the show was originally aired, and then on a national level when it went nationwide in 1986. This makes it one of the longest running shows on TV at the moment.

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Puff Daddy used to be one of the figures in entertainment that nobody would want their children to look up to. Involved in crime and guns, he was not as much of an inspiration as an example of what not to grow up to be. However, Sean Combs, the man behind Puffy, became that inspiration when he turned his life around and became an esteemed entrepreneur with a string of business interests to his name. He is the archetypal bad boy turned good today, but with one major difference, his entrepreneurial skills all come from the desire to make a better life for his children than he had. As such he is truly an inspiration to aspiring entrepreneurs who wish to escape a poor childhood.

Humble Beginnings

Sean Combs was born in Harlem on November 4, 1969.  He grew up in the projects and had a lifestyle that could only be described as poor. His father was shot dead when Combs was just 3 years old as a result of his drug gang connections, thus leaving his mother to bring Combs up single-handed. She did the best she could, but Combs was determined not to live in poverty his entire life and set about changing it for the better.

Sean Combs began to show his entrepreneurial skills at Howard University, where he was better known as a party promoter than a student. It was this that led him to the job of intern at Uptown Records. Although he learned the ropes of the music business there, he was fired in 1993 because he made an enemy of the boss. Upon leaving, he created his own record label – Bad Boy Records. Little did he know that it was the moment that would lead to so much more and begin his quest as an entrepreneur. 

The Bad Boy Entrepreneur

Bad Boy Records quickly became one of the hottest labels in rap.

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With so much talk about social media these days, everyone is jumping on board and trying it out.  We are seeing some common mistakes out there and I thought it was important to address these mistakes to help eradicate them in the future.

Don’t get me wrong, there will be a learning curve – we all went through it (and I met some great people that helped me, and that I helped along the way) but the key is to learn up front to minimize errors!

So, here we go…

Mistake One: Completely Ignoring Social Media

Believe it or not there are still some people out there that are ignoring social media.  They may be unsure of how to participate or maybe they just don’t have time to get involved.  No matter what the reason, this is a big mistake.  Social media continues to grow in popularity and in importance to internet users – the exact users you are trying to reach.
                    

Mistake Two: Bare Profiles

If you don’t bother completing your profile people won’t be able to get to know you.  It is also a sign to other users that you aren’t serious about participating on that site.  Many spammers don’t bother to complete their profile and a blank profile has become a red flag.

Your profile should include a custom background when possible, a photo, contact information, and a list of interests to help people get to know you better.

Don’t be afraid to show some personality and let people really get to know you and your company and what you stand for.
                   

Mistake Three: Faking It

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As a website owner, I’m sure you are always looking for new sources of traffic.  Have you considered Google News?  If you regularly publish news in your industry and want to be seen as a source for news you can request Google include your  site. 

This can be a great source of traffic and an excellent way to boost credibility for your company.

There are some important details you need to be aware of in order to increase your chances of Google including your site.

First and foremost, you have to request that Google include your site by visiting: http://www.google.com/support/news_pub/bin/request.py.

Here is some of the criteria Google is looking for.

Make sure that your pages that display the full text of news articles have unique URLs so that the Google is able to index each story individually. URLs with more than one article will not be included on Google News. 

The URL for each article must contain a unique number consisting of at least three digits, and should not resemble a date.  I’ve often heard you should aim for more than six digits to be safe. 

Here is what Google says about this: We can’t crawl an article with this URL: http://www.google.com/news/article23.html. We can, however, crawl an article with this URL: http://www.google.com/news/article234.html Keep in mind that if the only number in the article consists of an isolated four-digit number that resembles a year, such as http://www.google.com/news/article2006.html, we won’t be able to crawl it.

Make sure content on your news site is original.  You can’t republish a CNN story and expect Google to include your site in the News search results pages.

Your site should have more than one author. You should also have a page listing  all of the authors with their bios.

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Below are some of the crucial items you should have on your Blog. Take a look at this list and your Blog and see how you measure up. I can tell you that I did it myself and I had to create an action plan to fix my own Blog.

You see, just because I know what needs to be done doesn’t mean I always have time to implement it myself.

It is like the shoe cobbler’s children going to school with their shoes falling apart. I am so busy helping clients, I don’t have time to work on my own things.

The same may be true for you. You are so busy but you know you want to, actually you need to, Blog. So you start it and don’t necessarily have everything in place.

That’s OK. The key is to find out where you are lacking and create an action plan so you can take steps towards getting everything in place,

So, here is your checklist. Do you have:

A strategy in place? Do you know why are you Blogging? What are you hoping to accomplish? Do you know how often you have to Blog, what types of posts you need in order to accomplish your objective?

A posting schedule? Ideally you should have at least 2 new posts a week, and up to 5. Less than 2 is too little, and over 5 is often too much (unless you are a great writer and have lots of news and information to share, so you aren’t just writing fluff).

A comment policy? Do you moderate? If so, how long does it take to approve comments.

An ‘About Us’ section? Since Blogging is about connecting, sharing information and creating dialog to form relationships, you need to be sure to tell people who you are and what you are all about. Including contact information is a good idea

A Blogroll? Be sure to include NON company links. Point your readers to sites/blogs that you think THEY would be interested in reading.

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