Jake Snelson - Vyde

How To Tell If You Need Help With Marketing

You’ve got a small business. You’ve got a great product or service. You may even have a pretty steady cash flow and are doing ok growing your business. But what do you know about marketing – and even better, what are you doing about it?

Knowing when you need marketing help for your small business or side hustle is a pretty complicated decision. And there are a lot of options for what type of help you may need – a consultant, a little research online and time set aside to put your findings in action, or hiring a full-on marketing person to help you grow your business.

So how do you know if you need marketing help and what kind? We’re glad you asked.

Social Media? Why Would I Need That?

We’re joking – slightly. You probably do know what social media is. But do you have business channels on all the major social platforms for your business? Are you posting regularly and interacting with your followers? What about building a community amongst potential buyers/clients?

Even if you don’t sell your product online, it’s probably pretty obvious that you want to have a foothold in the online world because people turn to the internet for information and they turn to social media channels for recommendations from friends and other trusted sources. Having your business show up in a professional way on the major social media platforms makes it easier for them to find you and for their friends to recommend you. Being consistent in your posting and interactions on those platforms tells potential clients that you’re on top of things, that you’re invested in your clients, and that you, your product, and your services are a good pick.

I Don’t Have Time for That

We hear you. Figuring out what type of marketing help you need is only half the battle. Keeping up with it all is the other half and it’s almost impossible to do sometimes along with running your business. Many small businesses hire a part-time or contracted marketing person or social media manager. You may even find that there are virtual assistants that will maintain your accounts at a fair price.

Our recommendation is that you take a few minutes to research what you might need online. Then start looking for those experts we mentioned above and their cost. Based on your needs, you’ll be able to find something that fits your budget and saves you time. Make sure you understand what you’re getting and how it will help – whomever you hire should be able to explain all that, if they can’t they’re probably not a good fit.

Marketing Plans, Mission Statements, Logos are Not Your Thing

Not every small business owner is a creative – we’re accountants, so we totally get that. But having the creative/marketing side of things is a need for your business. Marketing plans and mission statements are a way of keeping your eye on the prize and are essential if you’re looking for investors to help you grow your business.

When it comes to logos, brochures, websites, and more – DIYing it may take more time than it’s worth. Hiring a marketer doesn’t necessarily mean they can accomplish all these tasks themselves, but it does mean that they’ll have connections with those who can and that they’ll have a good understanding of what you’ll need and what it should cost.

What other questions do you have about marketing? Tell us in the comments below.

What Are Expenses?

We work with small business owners and entrepreneurs. Some are seasoned, others are just growing their side hustle. Their skills are varied and they have a wide variety of talents. We often get asked to explain the ins and outs of financial reports and have found that providing our favorite clients with a working knowledge of accounting terms is helpful. With that end in mind, we’re sharing that expert knowledge with you. So if you’re looking to get a better grasp on your small business books, want to understand your financial reports so you can make better business decisions, or even are just starting out and want to do it right… you can check out our word of the week and start expanding your working financial knowledge.

What Are Expenses?

Business expenses include any money you use to buy something for your company. There are 2 types of business expenses that you may want to track for your financial reports:

overhead costs – are items you pay that probably don’t fluctuate all that much, rent, utilities, insurance, etc.
operating costs – these costs can fluctuate more easily, and are directly related to running your business including, raw materials, supplies, inventory, etc.

When it comes to business expenses, the best thing you can do is track them all. If you’re spending money from your business bank account, then you need to have a receipt, invoice or make a note in your business ledger for that transaction. You can always go back later and decide which type of expense it is, but knowing where the money is going is key to understanding your financial standing.

How Does Knowing Your Expenses Help?

So once you know what an expense is, and you maybe have even categorized them, it’s time to talk about why knowing your expenses can help your bottom line. You’ve probably heard that saying “knowing is half the battle…”, well it applies here. If you know where your money is going you’ve got a good bird’s eye view of the inner workings of your business. If you’re finding that you’re not making as much profit each month, you’ll want to look at your expenses? Have the cost of raw materials gone up? If you’re looking to strategize and have a surplus of funds for things like rent, etc. you’ll be able to look back at your total expense, and then break that cost up into monthly payments so you’ve got a strategy that doesn’t drain you of cash all at once.

What Are Liabilities?

Simply put, liabilities are any existing debt that you owe to another business, organization, vendor or employee. That mortgage you have on your storefront – a liability. The tab you keep with your top vendors – yep, another liability. The money you’ll be paying your employees at the end of this pay period- yet another liability.

Liabilities make buying items for your business easier, because you don’t have to pay the amount in full immediately. And although that makes things easier on your business finances, it’s important to know who you owe, how much, and what you owe it for so you don’t get in over your head.

How Does Knowing Your Liabilities Help?

Keeping track of your liabilities will help keep your business functioning. As we mentioned before, a business owner that just dives in without keeping records of who they owe, how much, and what they owe it for, will usually end up in a financial mess.

Sorting liabilities can be done by categorizing them in 2 ways – short and long term liabilities. Long term liabilities include:

loans that last more than a year
mortgages
accrued expenses
deferred taxes

Some examples of short-term liabilities are:

employee wages
accounts payable
supplies or raw materials
invoices from vendors
utilities for your building or production site

When you know and track your liabilities you’re able to get a good grasp on your business’s profitability and that can guide you on making further purchases for your business. Additionally, with clearly outlined liabilities you’re able to move forward in the process of securing additional money for your business by applying for a bank loan or signing with an investor. Most banks and investors want to see your liabilities and are more likely to lend money or invest when they know how far in you are and that you’re committed to and consistent in paying back your debts.

Frequently Asked Questions

1. What are liabilities in the context of a small business?

Liabilities in a small business context refer to any existing debts or financial obligations owed to others. This includes items such as:

Mortgages on business property
Vendor accounts payable for purchases
Employee wages to be paid
Loans and accrued expenses

Understanding these liabilities helps you manage and track your financial obligations, ensuring you don’t overextend your business finances.

2. How can tracking liabilities benefit my small business?

Tracking your liabilities provides several key benefits:

Financial Control: Helps you maintain a clear overview of what you owe and manage cash flow effectively.
Informed Decisions: Assists in making better business decisions based on your financial obligations and available resources.
Loan and Investment Opportunities: Banks and investors often require a detailed account of your liabilities to assess your financial health before extending loans or investing.

By keeping a detailed record of your liabilities, you can avoid financial pitfalls and plan for future growth.

3. What is the difference between short-term and long-term liabilities?

Short-term liabilities are obligations due within one year, such as:

Employee wages
Accounts payable (e.g., invoices from vendors)
Utilities and supplies costs

Long-term liabilities are debts that extend beyond one year, including:

Mortgages
Long-term loans
Deferred taxes
Accrued expenses

Categorizing your liabilities into short-term and long-term helps manage and prioritize your financial commitments effectively.

4. Why is it important to categorize liabilities in my financial reports?

Categorizing liabilities helps in several ways:

Clarity: Provides a clear picture of what debts are due soon versus those that are long-term.
Cash Flow Management: Helps in planning for upcoming payments and managing cash flow.
Financial Planning: Aids in budgeting and financial planning by understanding when and how much you need to pay off your obligations.

Proper categorization allows for better management and strategic planning of your business finances.

5. How can understanding my liabilities help me secure a business loan or investment?

When applying for a business loan or seeking investment, understanding and documenting your liabilities can:

Demonstrate Financial Responsibility: Shows that you have a handle on your financial obligations and are committed to managing your debts.
Improve Loan or Investment Approval: Lenders and investors review your liabilities to assess your financial stability and risk level. Clear and well-managed liabilities can increase your chances of approval.

What Are Operating Costs?

Operating costs can fluctuate, but knowing what they are and tracking them month to month can do a lot when it comes to running your business. So what are operating costs?

Operating costs are one of two types of business expenses. These costs are are closely related to making products and performing services and can include:

cost of shipping your products to a distributor or the shipping you pay to receive your raw materials
cost of your raw materials
manufacturing supplies (equipment or materials used to produce the product or service)
labor of employees (or your time if you’re a solopreneur)

How Does Knowing Your Operating Costs Help?

Just knowing your operating costs isn’t enough. As mentioned before, these costs can fluctuate and tracking it over time can help you see trends and plan for the upcoming year. In addition, understanding operating costs can help you determine the price for your product or service. Charging too little could mean that your profit would be small; or worse, that you’re operating with a deficit meaning you’re not making any profit at all. Plus, knowing and tracking your operating costs can help you claim some of them as a deduction come tax time – meaning you’re not only doing good business, but you’re being smart about it.

How to Set Up a Website for Your Business

As a business owner, you spend a lot of time finding and presenting your business to the right customers. You spend hours meticulously arranging your products, perfecting your pitch, or figuring out how to connect with your clients to close the deal. These are all important ways for you to present yourself to your clients. However, you may be missing a strong online presence.

A clear, comprehensive website can propel your business forward by creating an attractive experience for new customers and by reaffirming your business’ brand, objectives, and mission to your existing customers. A great website can also make it easier for new clients to purchase or request information online—saving you time and money.

Here’s how to set up a website for your small business:

Choose your platform.

There are many great platforms to build websites on. If your website needs are pretty basic, I suggest looking into a platform with lots of pre-built templates (ie. Wix.com.) For whatever platform you choose, sign up for an account and look through the different templates that are available. Ask yourself: How do I want the website to look? What types of pages do I want to include (See #4)? Remember, you can edit things like images, colors, and text, so focus on the layout.

Secure your domain.

You’ll need to secure your website domain—where your site will live (ie. www.mybusinessname.com). Most website platforms will also include hosting, but you can host your domain externally. If you already own your domain—great!— you can connect it to your account. If you don’t own a domain, you’ll need to check the availability of the one you want and purchase it.

Determine your brand.

If you have a brick and mortar store, chances are you’ve stuck with a theme as you’ve decorated, designed your logo, and presented your products. These things apply to your overall brand. Your website should reinforce your brand and create a seamless transition between your online and in person experience. Stick to the same color scheme, ambiance, and fonts that you use everywhere else in your business. Think of the way you want customers to perceive your brand: quality, fun, trust, high-end, affordable, etc. As you’re editing your template, make sure all the wording, imagery, and information support this brand perception.

Create the “Fab 4”.

There are four pages that every business website should include:

Home

Keep your home page clean and simple with compelling images that support your brand, a short blurb, and a call to action. When you are designing your website, make sure to have your call-to-action front and center. Think of what you want the customer to do when they get to your home page, then make it as easy as possible for them to accomplish that goal. Remember, this is your customer’s first impression of your online presence, so make it count.

Product/Shop

Whether or not your products/services are available for purchase online, you should have a product page that explains your offering. This page may contain an explanation of services with a form to fill out, or it may be a shopping cart where people can purchase. Either way, keep the experience clean, compelling, and concise.

About/Mission

There’s a driver behind each business—a reason why a business exists. Your website gives you the opportunity to tell your story, your mission, and your why. Create a page with a short explanation of why your business exists. Here’s an madlib to get you started:

“Business Name exists to help customer type with problem and we do this by services.”

Contact

Your customers should be able to get ahold of you. Have a page that includes contact information—the business address, and phone number.

Make sure each of these “Fab 4” pages have links on your navigation bar so that your customers can easily access them.

Test everything

Before you launch your website, make sure to test everything you can. Check for broken links, broken pages, and anything else that could make it hard for your customers to navigate.

What Are Assets?

What are Business Assets?

When it comes to your business, assets can come in a few different forms. So let’s break it down. Assets, are either tangible (physical) or intangible (valuable, but cannot be touched) items that are considered property of a business or individual, have value, and are available to meet commitments and debts of said business or individual.

Our short list of business assets and what category they fall in (tangible vs. intangible) is as follows:

copyrights or trademarks (intangible)
vehicles or machinery (tangible)
buildings, office furniture (tangible)
goodwill or patents on processes or products (intangible)
computers, printers, or inventory (tangible)

Breaking Assets Down By Type

Additionally, you can categorize assets as either current or long-term. Current assets or short-term assets included items that could be converted in to cash easily within a 12-month period. Your accounts receivable or the balances of your current business checking or savings accounts are a good example.

Long-term assets are items that aren’t intended to be turned into cash within that short 12-month period. Goodwill with your customers and vendors along with things like buildings, your machinery, and long term investments (more than 12 months to maturity) are things are considered long-term assets.

Once you have them categorized, assets have to be valued – and the value of an asset isn’t always what you paid for it. When putting a current value to your assets, you or your accountant will need to consider the following:

fair market value – when the value of an item is agreed upon by a motivated buyer and the seller
depreciation – the process applied by your accountant to spread the expense of your asset over time. (This is a big one for tax deductions, so you’ll want to make sure you hire an expert or that you’ve got it down by checking out the rules with the IRS if you’re going it alone on your books)
accounting basics – calculating your assets can vary depending on your accounting method, type of business and so on. You’ll want to make sure that you’re staying consistent and that you’re using the right methods…

How to Put Your Understanding of Business Assets to Work

You may be thinking this is all fine and good, but what does knowing all about your business assets really do for you? Well, that’s a good question that definitely deserves an answer.

Knowing your business assets can help you run your business in a variety of ways. Often you’ll hear those finance guys talking about working capital, which is just a fancy term for the money you need to cover your day-to-day business operations. Knowing what it costs to run your business means you’re armed with the info to make sound business decisions – and your short-term assets and current liabilities is what you use to compute that working capital number.

As a business owner, you’ll want to grow your business and might need to take out a loan to do so. The bank or investor might ask you to put up collateral – your tangible and intangible assets can be used for that collateral and help you secure the loan.

And finally, when you’re putting your heart and soul into something you want to make sure that you’re mitigating risk. One way to do that is to have insurance. You’re sinking your hard earned cash into equipment, an office space or building and so on. Having a list of both tangible and intangible assets and their current value can help you determine what to insure, and that you’ve insured it with the right amount of coverage.

The Best Way to Pay Yourself as a Business Owner

Knowing how to pay yourself as a small business owner may seem simple, but there are quite a few options when it comes to doing it right. The information below will help you learn the basics of how to pay yourself as a small business owner, but we highly recommend talking to a tax or financial expert (we’d love to chat with you!) when it comes to the specifics of your business.

Establish Your Business Type

Before we get into the money side of things, it’s important to know what type of business entity you have so you know what your options are for getting paid. Because you’re the owner of your small business, it seems simple enough to just withdraw money from your business account and go on your way – but selecting the best way to take your pay and being consistent with that method will make things easier in the long run when it comes to the financials.

Business entities include, sole proprietor, LLC, or a partner in a partnership. You’ll want to verify which entity type you have if you don’t know already and then read on to see what options you have based on your business type.

Salary or Draw?

If you’re not quite sure what the difference is between a salary or a draw, we’ll tell you.

A salary is a fixed amount being taken out each pay period.

A draw, also known as a owner’s draw refers to an owner taking funds out of the business for personal use.

The benefit to the salary option is that tax withholdings and benefit payments come out of your gross pay automatically, whereas with a draw they don’t. A draw of company profits is taxable income on the owner’s personal tax return, and owners are required to pay estimated tax payments as well as self-employments taxes on draws. So additional personal tax planning may be required to make the draw method a benefit.

Another benefit to a draw is that a business owner can not only withdraw profits generated by the business, but also can take out funds that were previously contributed to help run the company. Many new business owners who are just starting out choose to use the draw method because they can pull additional funds they originally invested if needed while they work to build their company and build a stable monthly income.

Knowing which option is right for you takes looking at your personal circumstances and the happenings within your business. If you’re not sure which option provides you with the best advantage – that’ the time to seek out expert advice.

How Much Should I Pay Myself?

No matter which way you decide to pay yourself or even what type of business entity you have – the most frequently asked question we hear is How much should I pay myself? And that’s a very good question.

When it comes to deciding how much to include in your paycheck you need to think about the the amount of money that is needed to keep your business operations moving forward as well as if you’re willing to do more personal tax planning by using a draw method rather than paying yourself a salary. Weighing your options will help you decide which is the best fit and also help you decide just how much you’re willing to pay yourself so you get the most benefit.

What other questions do you have regarding paying yourself as a small business owner? We’d love to chat and provide you with custom advice unique to your business.

How to Reduce Stress as an Entrepreneur

It’s no secret that being an entrepreneur is stressful. You’ve got a million things on your plate. From ordering inventory to dealing with customer concerns, to staying within budget and beyond, the stress of daily responsibilities can wear on you. As an entrepreneur, it’s important to reduce stress so that you can have a clear mind when making business decisions, pitching, or dealing with customers.

Get Organized

The best way to reduce stress as an entrepreneur is to get organized. When you feel overwhelmed by all the things you need to get done, organizing your tasks can help you to prioritize and knock them out one by one. Find an app that can easily keep track of your to-do items. If your tasks are time sensitive, you may find it easiest to use a calendar app. Schedule out time to get tasks done. Set reminders so that they pop up on your phone or computer. You may find that a simple checklist app helps you to keep track of tasks and to get things done. Some find that a good ol’ fashioned planner book works best. Every entrepreneur has a different style of how they accomplish things. Attempting to get organized can help you to find the right tools and to figure out what works best for you.

Take Time for Yourself

When you spend so much time growing your business that you forget to take time for yourself, you may find your stress levels skyrocketing. It’s important that you take time for yourself when running a business so that you don’t get burned out. Carve out time during the week for things that are important to you personally—time with family, exercise, hobbies, etc. When you take time for yourself, you’ll find your stress levels decrease, and you’ll be happier overall. Finding a balance between work and play can actually help you to be more productive. These personal breaks from your work help you to recharge and reset. It’s easy to get caught up in the day to day, so make sure you’re making time for yourself each week.

Delegate

You don’t have to try to do everything yourself. At times, it’s a struggle to hand things off to other people in fear that something might get dropped. However, delegating tasks can lighten your workload, create more efficiency, and a fresh perspective from another person may help your business to grow. Start off by getting organized and prioritizing your tasks. From there, you can decide which tasks you feel comfortable handing off to someone else in your organization. Allow yourself to trust this individual and check in with them to make sure they are on the right track to getting the task done. Delegating will help you take small or tedious things off your plate so that you can focus on more important things—like growing your business.

Stay Informed

If you have employees, you’ll need to find a balance between running your business and micromanaging. However you choose to do it, be sure to stay informed about what is going on within your business. It’s important to know how things are going financially, if your employees are being efficient, and any customer feedback about the experience or products. The more informed you are, the less blindsided you’ll be if something goes wrong.

Understand Your Industry

This last point is relevant to many areas of being a business owner, but it can also help you to decrease overall stress as an entrepreneur. When you understand your industry, the choices you make for your business become second nature. Having a deep understanding of your customers—their wants, needs, and how to communicate with them—takes some of the burden off of you as you are growing your business. This will help you to market better, pitch better, and serve your customers better—thus improving the overall state of your business. When you have a healthy business, you’ll be less stressed as an entrepreneur.

Frequently Asked Questions

1. How can getting organized help reduce stress as an entrepreneur?

Getting organized helps reduce stress by:

Prioritizing Tasks: Breaking down tasks into manageable steps allows you to focus on one thing at a time, reducing feelings of being overwhelmed.
Using Tools: Apps and planners can track tasks, set reminders, and schedule activities, helping you stay on top of deadlines and responsibilities.
Improving Efficiency: A clear, organized system helps streamline your workflow, making it easier to manage and complete tasks efficiently.

By implementing organizational tools and techniques, you can handle your workload more effectively and minimize stress.

2. What are some effective ways to take time for myself as an entrepreneur?

To ensure you take time for yourself, try these strategies:

Schedule Personal Time: Block out time in your calendar for activities that you enjoy, such as family time, exercise, or hobbies.
Set Boundaries: Establish clear boundaries between work and personal life to avoid burnout and maintain a healthy work-life balance.
Prioritize Self-Care: Engage in activities that help you relax and recharge, such as meditation, reading, or spending time in nature.

Regularly making time for personal well-being can reduce stress and enhance overall happiness and productivity.

3. How can delegating tasks help me manage stress better?

Delegating tasks can help manage stress by:

Lightening Your Workload: Passing on tasks to others frees up your time for more critical business activities.
Enhancing Efficiency: Delegation can lead to more efficient operations as team members focus on their areas of expertise.
Providing Fresh Perspectives: Others may offer new ideas or solutions that improve business processes and outcomes.

Effective delegation allows you to focus on strategic aspects of your business while reducing the burden of everyday tasks.

4. Why is staying informed about my business important for reducing stress?

Staying informed is crucial because:

Prevents Surprises: Knowing what’s happening within your business helps you anticipate and address potential issues before they escalate.
Improves Decision-Making: Being informed about financials, employee performance, and customer feedback allows for better, more timely decisions.
Enhances Control: Regular updates and reviews provide a clearer picture of your business’s health, reducing uncertainty and stress.

Maintaining a pulse on various aspects of your business helps you manage operations smoothly and mitigate stress.

5. How does understanding my industry contribute to reducing entrepreneurial stress?

Understanding your industry helps reduce stress by:

Making Informed Decisions: Knowledge of industry trends and customer needs allows for more strategic and confident decision-making.
Improving Marketing and Sales: A deep understanding of your target market enables better communication and marketing efforts, leading to more effective customer engagement.
Enhancing Business Management: Familiarity with industry standards and practices streamlines operations and reduces the likelihood of unexpected challenges.

How to Know If Your Small Business Needs an Attorney

It takes a lot of different skill sets to keep a small business running. As a small business owner or entrepreneur you’re probably used to wearing a few different hats and overseeing things such as production, marketing, customer service, and so on. But even though you can do things, doesn’t always mean that it’s in your best interest to do so. One such expert might be an attorney. But when might you need one and how do you go about hiring the right one? We’re sharing some of the when’s and how to’s below.

When To Know if You Can Do it Yourself or Should Hire an Attorney

We’ll cut right to the chase. Doing it yourself often saves you money and that’s important for a small business owner – every dollar counts. Here’s our short list as to when you can do it yourself compared to when you might consider hiring an attorney:

When You Could DIY It

writing a business plan
filing for a business license and deciding on a business entity
reserving a domain for your website
applying for an EIN for tax purposes
applying for licenses & permits
creating contracts for use with customers, clients or vendors
creating a buy-sell agreement with partners
updating any partnership or shareholder’s agreements under which you are currently working
handling audits by the IRS

It’s important to note that these items are things you could potentially take care of yourself, but that you could also hire any reputable attorney to take care of for you. Remember, just because you can do it, doesn’t mean that’s always the best option. When in doubt, seek expert advice before deciding to DIY it.

When To Hire an Attorney

former, current or prospective employees sue for wrongful termination or a hostile work environment
state or federal investigations of your business because of claims of law violations
negotiating the sale of your company or an acquisition of another entity or it’s assets

What You Should Be Looking for When Hiring an Attorney

Not all attorneys are created equal. Yes, they should all have a reputable law degree but just like doctors they specialize in a variety of areas. Making sure you understand what types there are to choose from and which you need for your particular concern is a great place to start. When looking for an attorney to help you with your business, you’ll want to find as many abilities as you can in the same person. Here are a few specialties that might come in handy:

contracts – this comes in handy if you’re hiring employees, setting up contracts with suppliers and so on.
business organizations – if you’re not sure what type of business entity you should be setting up, an attorney is a great person to ask. They’re also able to prepare the necessary paperwork.
real estate – this may not be an essential if you’re an online business but it might be if you’re looking to lease commercial space or build and run a brick and mortar store.
taxes & licenses – yes, an accountant will file your taxes annually, but you’ll need an attorney to help you get the proper licenses and they should also understand the more basic legalities that come with basic business transactions, etc.
intellectual property – if you’re creating new products or work in a creative field it’s important that your attorney understand how to register for trademarks and copyrights or at least know a specialist that can help if needed.

Once you’ve got the specialties down, you’ll need to also consider the following:

Communication is Key

JP Morgan once said, “I do not pay my lawyers to tell me what I cannot do, but to tell me how to do what I want to do.” A good attorney will outline your options, keep you posted on potential outcomes and make sure you stay above the law and out of any harmful legal action. Make sure that the attorney you hire is wiling to give you more than just “don’t do that” or “I’ll take care of it”. This is your business after all, they’re there to advise and that means they’ll need to use more than just a few brief sentences to keep you informed.

Location is Convenient

It goes without saying that keeping things close to home is always a good rule of thumb. Sure, there may be legal counsel that is highly acclaimed in a big city, but if it’s difficult to get there or even set up a time to meet, the odds are you won’t do it unless it’s absolutely necessary. Picking an attorney that is closer to home means they’re invested because you’re a client that isn’t going to be infrequent and you’ll also be a great referral to others in the area if they accommodate your needs well. Besides, usually things are dicey or complex when you need an attorney – so it’s best to make the process of meeting with them as simple, an time efficient as possible.

Trust Your Gut

It’s not always important that those you work with are your best friends, but it is important that you trust your gut feel with those that you hire to represent your business and give legal advice. If you get a funny feeling that the attorney you’re meeting with isn’t going to be a good fit – keep looking. This individual is going to need to be a good communicator, they’re going to have to understand your business and get along with you. Just because their legal advice comes with a great referral or at the right price doesn’t always mean it’s a good fit. Legal stuff is hard to deal with – so you’ll need to be comfortable with the person that you’re going to ask the hard questions to. You’ll also need to be ready to hear the tough stuff from your attorney as well, so be sure it’s someone that you can trust.

FAQs:

1. When should I consider hiring an attorney for my small business?

You should consider hiring an attorney for matters like employee disputes, investigations, or business sales and acquisitions.

2. What are the key tasks I could potentially handle myself as a small business owner?

Tasks like writing a business plan, filing for licenses, creating contracts, and handling IRS audits could be handled by yourself or an attorney.

3. What specialties should I look for when hiring an attorney for my business?

Look for attorneys specializing in contracts, business organizations, real estate, taxes and licenses, and intellectual property.

4. What role does communication play in choosing the right attorney for my business?

Communication is crucial. Ensure your attorney communicates clearly, provides options, and keeps you informed about potential outcomes.

5. How important is it to trust my instincts when hiring an attorney?

Trusting your instincts is vital. Your attorney should be someone you trust, communicate well with, and feel comfortable discussing tough issues with.

What is an Overhead Expense?

What Is An Overhead Expense?

First things first. If you’re wanting to know more about your business expenses we have to start at the beginning. You can read more about Expenses here. An overhead expense is one of two types of business expenses and includes the costs of running your business. These costs could include but aren’t limited to rent, utilities, employee wages and more. These type of costs ARE NOT related to the COGS but instead are things that do not generate revenue. Overhead expenses are costs that have to be paid even if business is slow and a smart business owner keeps some cash to fulfill these obligations just in case there’s a month or two that go by where profits might not be what they’d like.

How Does Knowing Your Overhead Expenses Help?

Knowing your overhead costs can help you set your prices for the products you sell or the services you render so that you’ll end up with profits. Factoring in the overhead will show you just how much money your business needs to bring in so you can stay afloat or even grow. You can also use your overhead expenses to help you figure out your net profit or bottom line. Knowing what you’re spending on overhead expenses can be the first step in strategizing a way to bring those costs down. Simply reducing the amount you put towards overhead expenses can increase your net profit.

Frequently Asked Questions

1: What is an Overhead Expense?

Overhead expenses are the ongoing costs of operating your business, such as rent, utilities, and employee wages. These expenses are not directly tied to generating revenue (unlike the cost of goods sold or COGS) and must be paid even when business is slow.

2: How Can Understanding Overhead Expenses Benefit My Business?

Understanding your overhead expenses helps you set appropriate prices for your products or services, ensuring you cover costs and make a profit. It also allows you to better calculate your net profit and strategize ways to reduce expenses, ultimately boosting your bottom line.

3: Why Should I Track Overhead Expenses Regularly?

Tracking overhead expenses regularly gives you a clearer picture of your financial obligations, helping you manage cash flow more effectively. It also helps you plan for periods of lower profits, ensuring you have enough cash on hand to cover these essential business costs.

Resources

Author: Jake Snelson

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FAQs:

What Is An Overhead Expense?

How Does Knowing Your Overhead Expenses Help?

Frequently Asked Questions