Jake Snelson - Vyde

The Business of Blogging Part One: Blogging Myths & Truths

This post is part of the popular Business of Blogging series. If you’re looking to start a business online, or if you’re looking to grow your business with a blog, the information provided here is a good place to start.

More and more of today’s business is being done over the internet. Shopping, consulting, taking classes, even ordering food can be done by the swipe or tap on your smartphone. Despite the fact that convenience is one of the internet’s greatest gifts, it also gives us a host of knowledge right at our finger tips.

Blogging is no longer family pictures and a digital way to preserve or share memories. Today, blogging is a key way to provide expert information about your product or service and many online entrepreneurs are financially successful just by providing expert-level information alone.

So how does one turn a blog into a business? We’re glad you asked.

Despite the fact that anyone can start a blog, very few are successfully run businesses. And even though the idea of online businesses is still fairly new, the way to create a successful business is not. In this series, we discuss the details of business as it pertains to blogging, and our goal is to help you turn a profit from providing your knowledge, product, or service on your own little piece of the internet.

Today we’re discussing the myths and truths that go along with making a business out of your blog. You may have heard that blogging is a great way to earn money, that you can do it from anywhere, and that it’s relatively easy to do. We’re covering it all… now.

Read more here…

How to Create Daily Rituals that Help Propel You To Success

We’ve heard it before. The effect daily rituals have on success is quite the topic among high achievers. The concert pianist who practices scales and muscle memory exercises mercilessly to help hone their craft. The athlete that visualizes winning a gold medal, scoring the winning goal or breaking a world record in efforts to maximize their performance. And the ultra-savvy entrepreneur or CEO that gets up early, works out regularly, takes risks and makes millions. More often than not, those that are most successful in their chosen field attribute their success to exercises, or rituals, such as the ones mentioned above. The difference between an exercise and a ritual might just be the fact that most rituals become long-standing habits. Aristotle said it best,

We are what we repeatedly do. Excellence, then, is not an act, but a habit.

So what exactly do daily rituals mean for small business or entrepreneurial success? Everything. Today we’re breaking down the purpose of daily rituals and just how we can implement them to help propel our success in our chosen field or industry.

Benefits of Optimized Rituals

When most people hear the world ritual they associate it with religion. In this case, a ritual is merely something that is done consistently in efforts to produce the same results. Rituals, aren’t just consistent, they’re outlined steps that are followed with exactness so as to ensure a wanted outcome. So what type of benefits can you expect to see from a ritual? We’re glad you asked. Rituals can benefit anyone in the following ways:

Put you in a high performance groove both mentally and physically – its a surefire way to get ready for big decision-making and calculating risks
Allow you to predictably perform at a high level – meaning you can count on high performance every time rather than hit and miss chances at success
Stop you from overthinking – when it comes to risks, thinking too much can actually cost you a win. Rituals push you through the process and help you get to the success faster so you don’t overthink or miss an opportunity
Allow you to upgrade your performance because you can break things down in steps and tweak what’s need fixing – doing things repeatedly and in the same way allows you to pinpoint where the breakdowns might occur and correct them.
Give a sense of purpose and confidence – creating a habit or a practiced sequence means you’ve seen success before. This consistency gives you confidence that you can recreate the same effective outcomes and that means you’re more and more ready to push through the challenges ahead.

How to Build Your Own Daily Ritual

Now that we’ve got you convinced about daily rituals and how they can propel you to success, lets talk about how to create some rituals of your own. It really is just a prescribed sequence that can help set you up for success – creating some ornate set of steps or adding additional tasks to your already busy schedule won’t do. Real rituals are the most effective when you fine tune your already existing routines to help ensure a successful outcome. To do this, we suggest the following steps:

catalog what you already do – focus on a single area that you wish to improve. It may be your customer service, product launches, or even expanding your business in a certain area. List out the typical steps you take.
take a look at your process – What steps are you missing? Are there things you might be able to add in, delete, or move around that would better ensure your success?
reinvent the ritual and put it to practice – make the changes and then get to work. No matter what your ritual, you won’t see success unless you put in consistent effort.

Incorporating AI technologies into daily rituals can significantly enhance productivity and success. Future AI tools like personalized scheduling apps, virtual assistants, and smart home devices can streamline routines and manage time efficiently. By automating repetitive tasks, AI allows individuals to focus on high-priority activities and decision-making. Additionally, AI-powered analytics can provide insights into personal habits, helping to optimize performance and well-being. Embracing AI in daily rituals not only boosts efficiency but also fosters a proactive approach to achieving goals, ultimately propelling individuals toward greater success.

We’d love to hear about the goals you’ve set and the rituals you’re creating to help you get there – drop us a line in the comments.

Frequently Asked Questions:

1. What are daily rituals, and why are they important for success?
Daily rituals are consistent, outlined practices that help create habits leading to success. They prepare you mentally and physically, enhance performance, and build confidence.

2. How do rituals differ from regular exercises?
Rituals are structured, repeated practices aimed at achieving specific outcomes, while exercises are often one-time or sporadic activities. Rituals become ingrained habits that consistently yield results.

3. What are some benefits of incorporating daily rituals?
Daily rituals can improve performance, reduce overthinking, boost confidence, and provide a sense of purpose. They help streamline decision-making and enhance consistency in achieving goals.

4. How can I create my own daily rituals?
Start by cataloging your current routines, identifying areas for improvement, and making adjustments. Focus on consistent practice to reinforce these rituals for optimal results.

5. How can AI enhance my daily rituals?
AI technologies, like personalized scheduling apps and virtual assistants, can streamline your routines by automating repetitive tasks. This allows you to focus on high-priority activities, improving efficiency and productivity.

7 Tips on What Not to Do as a Small Business Owner

Being a small business owner is hard. We balance personal life, work, and everything inbetween just trying to make it through the day. Because of this, it’s easy to take shortcuts or let things slide. Here are a few ideas on what to steer clear of or at least know what you’re getting into so you know how to handle it:

Don’t Hire a Family Member or Friend

This can be tricky. There are times that this works out well, however, keep in mind that you will need to be prepared to give correction, be professional much of the time, meet deadlines, and be careful with money. If you do hire someone close to you, make sure that you talk about the professional requirements of the job and how you are counting on them. If they don’t work out, be honest. Make sure they also happen to be the best person for the job.

Don’t Allow Business to Change Your Personal Calendar

Many times, people quit a taxing 9-5+ job to start a small business so they can spend more time with their family. It’s hard when trying to “make it” in the beginning, and when you “have arrived” and things are really busy. Just remember, you switched vocations so that you could spend time where you wanted. Even if that takes a little less money here or there, those kid performances are important. Make your schedule at the beginning of the week and try to stick to it.

Don’t Do Everything Yourself

You’ve heard the phrase, “the devil is in the details” right? Well, when owning a small business, it can actually be bad to care about so many little details. Hire a good team, then delegate, and TRUST them. They might not do things the way you would, but why would they? They can bring something better than another robot version of yourself…variety, cross-functional thinking, and most importantly, TIME 🙂 Don’t discount the importance of this when you get to pay day.

Don’t Be Late to Everything

here are so many tasks, projects, people to follow up with, customer requests to get to. Even if a conversation seems to be going somewhere successful, make sure to let a prospective buyer/client know what time you need to be done, and stick to it. Professionalism counts, even for small business owners. By excusing yourself to head to another meeting or a child’s soccer game, the buyer will know your time is precious and take you more seriously than if you hung out with them all day listening to what they have to say.

Don’t Assume That Spending Money on the Business Should Always be Done Cheaply

This goes for marketing materials, trainings, software, employees, etc. Careful planning and organization is important, but many of these items should be viewed as an investment toward the future. I’m only talking to the Frugal Freddie’s here. Spending frivolously is a different topic. It’s not a good idea to hold out on marketing for an upcoming conference, or withhold training for employees, or put off a simple low-cost piece of technology until you have more customers or make a certain amount. It is smart to spend even when you don’t have much, as long as it is done in a strategic way. Most importantly, don’t skimp on paying good help what they are worth. A special gift to collaborators can go a long way as well.

Don’t Reinvent the Wheel

Don’t feel like you have to implement all of your ideas right away. Even a “slam dunk” plan might not have the best timing. Think about what you have already created and how you can use it to implement a version of the plan. If the timing isn’t right, don’t throw the plan away. Make a folder on your computer or project management software for “Backlog” or “Ideas.” Revisit that folder at quarterly and annual review time. You’ll be amazed at how many great ideas can be patched together from plans you’ve almost implemented in the past.

Don’t Act as if Sleep & Exercise is for Wusses

You know we all do this. We stay up late to get everything done that hasn’t been done for years, and then get disappointed when we can’t finish, have no energy during the team meeting the next day, and forget to tell employees how important hair nets are. Work will always be there. Sleep and exercise is how we get through the day without sluggishness, depression, etc. Also, we end up becoming more dependant on coffee, sugar, junk food because we don’t have the energy to get through the day without it.

You are doing great. Many times we think we aren’t making a difference or selling enough, etc. Take a look at all the good that has come because of opening your doors. Thanks for all the hard work you do to build the small business community in a STRONG way!

How to Stay Organized on Your Business Calendar

It’s all too easy to let our day jobs rule our lives. With technology at our fingertips we can constantly be in contact – checking emails, answering texts, and fielding phone calls. Our work schedules quickly feel up with business meetings, and collaborating with teams on projects, new product launches and much, much more. As small business owners, we’re guardians of our time and our success and the two are definitely linked. Today we’re sharing our top tips for keeping organized when it comes to your business calendar.

Make an Optional Calendar

Life is busy. We say no to lots of things… even good things that might help us take our personal and professional lives to the next level. The reason? Time. But if you’re like us, you’ve had the occasional afternoon open up and you’re left coming up with what to do or worse, wishing you could remember the dozens of tasks that you’ve been meaning to get done.

You’ve probably seen on your own digital calendar that you can set up multiple calendars and have them appear at a click of a button a master calendar. Events are color coded and it’s not only pretty to look at but effective. That said, it can still cause a lot of stress and an over-programmed life. When you say no to an event or project that you’d like to say yes to, slip it onto a “Optional Calendar” that way you’ve got the information at hand when your afternoon seems to open up and you’ve got free time you didn’t know you had. And you can shut down the regret of having to say no by simply turning the view option on that calendar off. With an Optional Calendar, you can spend the time doing more rather than figuring out what to do with your free time.

Work in Blocks of Time

You’ve heard of batching tasks and we’ve even talked about automating processes, but there’s something to be said for blocking off chunks of time so you can hunker down and get things done. You’ve probably heard of many an entrepreneur or CEO that hits the office early so that they get a jump on the day – they’ve scheduled blocks of time for answering emails or brainstorming projects – often those things that aren’t easy to accomplish amidst a dozen interruptions.

Take a look at your schedule. Can you move your meetings all to the afternoon so you’ve got time in your office to take care of daily tasks? Maybe it’s best to schedule out reading and answering emails before 10 AM. No matter what you do, look for tasks that you do often or that require similar circumstances (like peace and quiet to return phone calls, etc.) and then group like tasks together.

Prep for Tomorrow

Half the battle of a successful day is being ready for what it holds. Some of the most successful small business owners we know make it a habit to spend the last few minutes of the day getting ready for the next. So what is it that they do?

Some review their schedule for the next day? Others write the last few emails and hit send, others clear off their desk, close out of tabs in their internet browser, and scribble down a short list of to do’s so they can hit the ground running. The best way to figure out what to do to prepare for the next day is to take note of what things you’re doing first thing in the morning – then add those tasks to your end of day and you’ll start the next day ahead.

Prioritize Tasks & Do What You Can, Now

The almighty to do list can get awfully long, so make sure you prioritize it once you’ve created it. Most efficiency experts say that planning to accomplish 3 major tasks each day is a definite win. But what about all the little things you put on your list – where do those fit in? Instead of pushing them into tomorrow’s schedule stop and do them now.

Don’t wait to respond to that employee that needs an answer tomorrow – craft a short response and send it now. Once you prioritize your tasks you’ll be able to see which items need more thought and which ones can easily be accomplished or eliminated completely.

So what are some of the ways you stay organized in your business calendar and life? We’d love to hear your ideas in the comments below.

FAQs: Staying Organized on Your Business Calendar

1. What is an optional calendar, and how can it help me stay organized?

An optional calendar is a secondary calendar where you can add events or tasks you would like to do but are not essential. This helps you avoid over-scheduling and provides a list of productive activities when you find unexpected free time.

2. How can blocking time improve my productivity?

Blocking time involves scheduling dedicated chunks of time for specific tasks. This minimizes interruptions, helps maintain focus, and allows you to complete similar tasks more efficiently, improving overall productivity.

3. What are some tips for preparing for the next day?

Spend the last few minutes of your day reviewing the next day’s schedule, sending any final emails, clearing your desk, and making a to-do list. This preparation ensures you start the next day with a clear plan and focus.

4. How should I prioritize tasks on my to-do list?

Focus on accomplishing three major tasks each day. Prioritize by importance and urgency, and try to handle quick tasks immediately to keep your list manageable and prevent procrastination.

5. Why is it important to respond to small tasks immediately?

Addressing small tasks immediately prevents them from piling up and becoming overwhelming. It also ensures timely communication and keeps your workflow smooth and efficient.

4 Ways to Raise Your Small Business Credit Score

When it comes to test scores, salaries, batting averages, or pretty much anything other than golf scores – the higher the better. The same goes for credit scores. And a good credit score means a lot if you’re starting or running a business.

Why Your Credit Score Matters

A credit score is a way that financial institutions and lenders attempt to predict your future financial behavior. They look at your financial past- what types of loans you’ve taken out, if you quickly repay or default on a loan altogether, and if you’re consistent in your payments and even pay on time. Then based on their assessment they assign you a score between 850 and 300.

The higher the score the better of an investment you are, so your ability to take out new loans or work with lenders with better rates increases.

This can be essential if you’re looking to start a business or expand the business you already have. It even can come into play if you’re sourcing large amounts of raw materials or other resources for your business – many wholesalers are more likely to extend larger tabs to clients with higher credit scores because they know they’ve got a good financial history.

How Do You Increase Your Small Business Credit Score

Remember, you didn’t get your current credit score overnight, so raising your credit score isn’t going to happen that fast either, but you can always do things to help it improve.

Take a look at your current credit report – review you’re current credit report and look for areas that might include false information or items that have a negative impact. Verify your story to the best of your ability by collecting related paperwork and any bank or credit card statements. Then contact the credit agency and ask to work through these concerns.
Pay on time. Every time – Making sure you can pay your bills and that you do so on time is the best way to improve your business credit score. To do so, consider setting things on autopay, paying a little extra each time so you’ve built up a reserve and setting reminders on your phone so you can check to see that you’ve paid in full by the required monthly deadline.
Pay Down Your Debt – for most individuals and small businesses this can be a monumental task, but it is possible and it makes a great impression. If you’re looking to acquire a loan or are putting things on credit, go into it with a plan on how to pay it off. If you’re stuck with debt, take a look and see if you can consolidate it by using a debt snowball method. No matter what, pay the minimums so that your current schedule credit score doesn’t take a hit.
Improve your Credit Utilization Ratio– lenders take into consideration just how much you utilize your credit. The higher your utilization rate the greater the risk of not being able to repay your debts. So work to keep your credit utilization rate low, preferably under 30%. Lenders want to see that you can properly manage your debts and are much more willing to extend credit if there is a lower risk.

No matter what don’t give up. Pick a strategy and stick with it. Don’t get frustrated when you don’t get immediate results – like we said before, you didn’t get your current credit score overnight and you won’t undo it that fast either. Making wise financial decisions consistently will not only improve your credit score but also help your financial standing overall.

FAQs About Credit Scores for Small Businesses

1. Why is a good credit score important for my business?
A good credit score is crucial as it influences your ability to secure loans, negotiate better interest rates, and even establish relationships with suppliers. Lenders view higher scores as a sign of financial responsibility, making you a more attractive investment.

2. How is my credit score determined?
Your credit score is calculated based on your financial history, including the types of loans you’ve taken, your repayment history, and how consistently you make payments on time. Scores range from 300 to 850, with higher scores indicating better creditworthiness.

3. What steps can I take to improve my credit score?
To improve your credit score, start by reviewing your credit report for inaccuracies. Make timely payments, reduce your overall debt, and maintain a low credit utilization ratio (ideally under 30%). Consistent positive financial behavior will gradually enhance your score.

4. How long does it take to see improvements in my credit score?
Improving your credit score takes time and consistent effort. While some changes can lead to quick improvements, many factors will require ongoing attention. Be patient and stick with your strategies for the best long-term results.

5. What is the credit utilization ratio, and why does it matter?
The credit utilization ratio measures how much of your available credit you’re using. Lenders prefer a low utilization rate, ideally under 30%, as it indicates that you manage your debts responsibly. A lower ratio can positively impact your credit score and increase your chances of securing new credit.

When to Claim the Standard Tax Deduction & When to Itemize

Whenever you are making a charitable donation you’ll want to get a receipt so that come tax time you can decide if you should take the standard deduction or if you should itemize.

What is the standard deduction?

Like we said before, the standard deduction is based on your tax filing.

For 2016 taxes these are standard deduction rates.

Single taxpayers – $6,300
Married taxpayers filing a joint return – $12,600
Head of household taxpayers – $9,300

How to calculate an itemized deduction.

Save Time & Stress Less – Process Automation

Entrepreneurs and small business owners are often one-man shows. But just because your headcount is small doesn’t mean that your business has to be. In fact, you can save time, stress less and earn more by spending a little bit of time thinking through your daily tasks and implementing process automation where you can. For many small business owners, process automation sounds like something that’s only for large corporations or businesses that have exponential growth – but we’ve seen that process automation doesn’t just cut down on stress and save time, it also helps businesses grow – and grow quickly.

What Process Automation Can Do For Your Business

Just so that we’re clear, they type or process automation we’re talking about is anything that brings structure to repeated tasks or eliminates additional work. If you’ve created your business from the ground up, you probably either remember the days (or are still in them) where you’re crafting the same emails over and over, or feeling like you’re reinventing the wheel for every client, new product launch or customer service issue. The start up phase of any business is so focused on bringing in enough cash to support the business that we spend a lot of time spinning our wheels.

Why Process Automation Helps You Grow?

The simple answer – it frees up your time so you can focus on other tasks. But it also helps in a bunch of other ways. Process automation can save you money. For example, we have lots of clients who tell us that they’re super busy and need to hire an assistant. But when we look at their books, we can see that they might not be able to pay an assistant and that the income their brining in doesn’t seem to match up very well with the hours they tell us their spending. Hiring an assistant seems like a great way to reduce stress, but it could actually increase it. Instead, we recommend taking a brief look at the work you’re completing every day. Are you still drafting out customer service emails when needed or do you have a file of templates that you can tweak as needed? Do you process and package orders individually or do you batch tasks? You can see that answering a few simple questions and then putting together a little bit of a structured plan can quickly convince you that you actually don’t need an assistant you need process automation.

How to Get Started with Process Automation

We touched on this slightly above – the first step is to stop and look at what you’re doing over and over again. If you feel like you’re having to recreate the wheel, chances are you’ve got an area of your business that could benefit from process automation. Before you rush out and buy new equipment or purchase expensive software – make sure you stop and see if there isn’t an easy fix. Here’s our short list of process automation ideas that don’t require spending a bunch of additional money, but rather just a little bit of time:

emails – dig through your sent email box and pull out those you’ve already drafted and that seem to need to be written again and again. Make a file of email templates, even save them in your drafts folder right there in your inbox and then make sure to just cut and paste and tweak as necessary. Even if you only have a template or two, you’ll be saving yourself at least a half hour each day.
batching tasks – it’s one of the first things people suggest but also one of the last suggestions people actually take. But the time you can save by batching tasks is amazing. And it also simplifies your work day so that you’re not stressing about the fact that you didn’t get much done. Take 20 minutes and brainstorm all the areas of your business. You may only answer customer service emails during lunch time, and spend mornings picking product, packaging and getting it ready to ship. If you find yourself constantly brainstorming ideas for marketing or new products – schedule time to do it once a week rather than every day.
bring in technology only when it’s needed – it’s true, tech and additional software can help streamline a process, but learning that software or implementing it can take time. If it’s a good trade off, then by all means bring on the tech, but if it’s going to take longer to learn/implement than the time it will save – it might not be worth it, at least not at this point. We find that lots of our clients have purchased software in hopes to save a buck and DIY their own taxes and monthly bookkeeping – we’ve also found that most save more money by outsourcing it to us than they ever did trying to do it themselves with a fancy software program. This isn’t always the case, but hiring an expert or specialist might be a better fit so don’t rule it out before you’ve checked into your options.
buy in bulk & subscribe if possible for repeat purchases – when your business was new, you might have saved a buck or two by buying only what you needed right then. But a great way to cut cost and time is to buy in bulk. Packaging materials or raw material you use for product/services is a great place to put this method to practice. If you’re constantly shipping goods, consider purchasing larger quantities of packing material from a supplier rather than picking up just what you need at a retail store. If you’re a service based business requires that you keep certain tools or equipment on hand (like if you’re window washer and you know you’re going to need cleaner, rags and window cleaning tools) plan to not only buy in bulk but utilize a subscription option for your products if it’s available so you don’t even have to spend time filling your shopping cart with the needed products each month.
keep a history – writing down how you do certain tasks while you do them will help you figure out what processes need or could be automated. It will also help you streamline how you attack events that happen over and over again in your business. Product launches, marketing campaigns, seasonal tasks – they’re all important but they might happen more infrequently than the day to day tasks. Keeping a history of what you did and then referring to it when it’s time to do it again will help save time and even help you pinpoint areas where you want to improve.

So what areas of your business could use a little streamlining? We’d love to hear what areas you’re going to add process automation to first!

5 Quick Ways to Get Debt Free as an Entrepreneur

Being an entrepreneur means you’re bound to take risks, even if they’re well calculated and justifiable and when it comes to running or starting a small business taking out loans or racking up debt are usually a large part of that risk. The smartest entrepreneurs we know are those that take the risks and then set up a game plan to make sure the odds fall in their favor. We’re sharing a few easy ways to get debt free quickly.

Have an Emergency Savings Fund

It may seem almost counter-productive to say that the best way to pay off debt is to save money, but we’ve found that it’s one way small business owners make sure they can survive. Setting aside, even a small amount, every month as an emergency fund means that you’ll be prepared to keep your business open and running in case problems arise. This means you’ll still be open so you can bring in an income and it also means that you’ve got cash you can use when an emergency comes up so you won’t have to rob your creditors by cutting down the amount you pay each month or not paying at all.

Always make Minimum Monthly Payments

After the emergency fund, committing to always making minimum monthly payments is the best way to pay down debt. When you’re starting a business plan to operate on the lean side right from the start. By doing so, you’ll be able to guarantee that you can make minimum monthly payments because you’ve played it safe from the beginning. Of course it’s better to pay more than the monthly minimum payment if possible, but always paying the monthly payment – and paying it on time – means you’re making a dent in the debt you’ve already accrued.

Create a budget and remove extraneous items

If you haven’t already created a budget – do it now. Not having a budget may have put you further into debt to begin with, but it’s always better to set things right now than to let them linger on. Having a budget allows you to see where the money is going each month. You may have to adjust your budget after a month or two if you’re just starting out, but having an idea of how much you spend and when is a good start to getting things paid off and knowing what you can afford.

If you’re wanting to pay off debt even faster, take a look at your budget and see where you might be able to cut back. A great place to look first would be in the petty cash and miscellaneous expenses – these are often “extras” that are easy to cut out. Then, take a look and see if you can eliminate extra cost – can you move to a less expensive plan for your phone bill or internet provider? how about cutting back on the amount of overhead you carry? do you have too many employees or too large of a retail space? Looking to cut back in every category makes you hyper-aware of what you have, and conscientious of what you really need. Even if the answer is “no, we can’t cut that” you can watch that area over the next month or two and really be able to see if that’s true.

Prioritize Debt Payments

It’s also known as laddering, stacking, or a debt avalanche, but no matter what you call it – it does the same thing. Prioritizing your debts is something that is just plain smart and incredibly useful in managing both small business and personal finances. To accomplish it, list out all your outstanding debts. Then you’ll be able to see which have the highest amounts and the highest interest rates. Now you’ll decide which debt to attack first – you can pick the one with the highest interest rate, the one with the highest balance or the one that you know you can pay off fairly quickly (this option is great for helping you to feel a quick surge of success which can fuel you to continue paying off debt!). From there the process is simple, you continue to aggressively pay the debt of your choice while paying just the minimum for every other debt you hold. Then when your selected debt is paid off in full, you roll the payments you were making there onto the next debt.

The key to this method is sometimes forgotten – for the debt avalanche to work, you need to make sure you’re covering all your necessary expenses month to month. Putting these on a credit card or not paying them at all, only increases your problem rather than helps solve it.

Increase your Income

When the debts start piling up, it’s easy to focus on what you owe rather than what you earn. Spending some time looking at ways to increase your income is one of the easiest ways to pay down debt especially when it comes to your small business. What market haven’t you tapped into, could you run a sale or promotion to drive sales, is there a product you’re ready to launch that might bring in additional revenue without raising your costs too much? Maybe you need to pick up a second job or an additional revenue stream? Looking for ways to increase your income is a great way to pay down debt – because whatever additional income you generate can be put directly to paying off your debt.

What other ways have you quickly paid down debt? Tell us in the comments.

FAQs: Getting Debt Free as an Entrepreneur

1. Why is having an emergency savings fund important for paying off debt?

An emergency savings fund helps ensure you can keep your business running and handle unexpected expenses without needing to reduce debt payments. It provides a financial cushion that keeps you from missing payments or increasing your debt further.

2. How can always making minimum monthly payments help reduce debt?

Making minimum monthly payments consistently ensures that you are at least covering the interest on your debt, which prevents it from growing. Paying more than the minimum when possible will reduce the principal faster, but maintaining the minimum payment is crucial for steady progress.

3. What should I include in my budget to help pay off debt?

Include all income and expenses, and categorize them to track spending. Look for areas where you can cut back, such as petty cash, miscellaneous expenses, and non-essential services. Adjust your budget as needed to maximize debt payments.

4. What does it mean to prioritize debt payments, and how does it work?

Prioritizing debt payments involves listing all debts and focusing on paying off one at a time, usually starting with the highest interest rate or the smallest balance. This method, known as laddering or stacking, helps reduce overall interest paid and provides a sense of accomplishment as each debt is paid off.

5. How can increasing my income help with debt repayment?

Increasing your income provides additional funds that can be used to pay down debt more quickly. This can be achieved through exploring new markets, running promotions, launching new products, or even taking on a second job. The extra revenue helps accelerate debt reduction without cutting into essential business operations.

Top 3 Business Strategies That Will CHANGE The Way You Do Business

There are many different types of consultants. Business, IT, HR, Marketing, etc. IT consultants can fix hard drives, cloud problems; HR consultants can protect you from wrongfully terminating an employee and teach you how to hire in order to get the best candidate for the job; Marketing Consultants can help you launch a product. Business Consultants offer strength in business strategy and an overall picture. Without a doubt, professional Business Consultants help clients by utilizing at least some form of these 3 analytical assessment tools: SWOT, SLEPT, and Value Chain. Below, we discuss what these are, and how YOU can start streamlining your business for success today!

SWOT (Inside your company: Strengths, Weaknesses; Inside Your Industry: Opportunities, Threats)

This analysis is often the hardest for an owner/manager to do on their own company as we are either our company’s harshest critic, or biggest fan. This analysis asks what are your company is good at and what could your company improve upon. It also asks what opportunities industry has to offer, and what threats do working inside that industry entail?

Challenge: Always remember strengths, especially when you are feeling like you just can’t get ahead. Never forget that weaknesses can become strengths when you identify and fix them. Take advantage of the opportunities in the industry you are in. Turn your threats into opportunities by doing what it takes to become first to market or research to fix the mistakes other companies have made launching their product ahead of yours.

SLEPT (Inside your Industry-Social, Legal, Environmental/Economic, Political, and Technological factors)

This tool helps to analyze the industry within which you are competing, in order to find Opportunities and Threats in the areas listed above. For example social trends play a huge role in opportunities available in an industry just based on what large percentage of purchasing target markets are wanting to pay for. Legal generally has to do with threats due to regulations of the area or industry. Environment and Economy play a huge role in whether a product or service is sustainable or affordable and if that happens to be an opportunity or a threat to the position your company is in. Politics plays a large role in what is available as tax rates either skyrocket or are given a break to business owners. Technology is either a disruption or offers an opportunity base on what industry, skills, and commitments are needed.

Challenge: Taking 5-10 mins per day for a week to read a few top articles/posts on what is going on in the world that affects your industry. This can be immensely important to staying ahead of competitors.

Value Chain-(inside your company)

This one goes a little more in-depth than the others do. It focuses on the Support Activities (what helps the business run: Infrastructure, HR, Technology, Inventory) and what’s called Primary Activities (minutia, details of how the business runs: what happens when stuff comes in and out of the company, how the product is created, what marketing and sales pieces are applied, how customers are served).

Challenge: When you are able to analyze what you are doing well and what you are struggling with in each of those areas, the next step is to take a look at the rest of your industry and even other industries. Do they have ways they have fixed those issues you have? Is there another way to perform business or support the company that will lead to lower costs and higher return on investment? Once you have made these considerations, take a look at 1-3 items your company can improve on. Open up ideas to the members of the company and get some cross functional answers. Implement changes in a steady and consistent manner.

These tools should be performed biannually, scheduled just before the annual company meeting and the 6-month check in meeting. It’s also a good idea to follow up on progress of the changes at quarterly meetings. As with any business strategy, it’s best to get a professional outside opinion, and have courage to follow through consistently on your specific goals.

How to Get a Tax ID for Your Small Business

What is a Tax Identification Number?

A Tax Identification number is the same as an Employer Identification Number (EIN). The IRS uses this number to identify your business entity, just like they use your Social Security Number to identify you for your personal taxes. Applying for a Tax ID is simple and can be done online. Don’t be fooled by companies offering to file for a Tax ID for you – it’s a simple process you can accomplish on the IRS website for free and most people don’t need any help to complete the application.

Do You Need a Tax Identification Number?

Figuring out if you need a Tax ID is just about as simple as applying for one. The IRS says that you need a Tax ID if:

your business operates as a corporation or or partnership
you have employees
you without taxes on income others than wages paid to a non-resident alien
you have a Keogh Plan (tax-deferred pension plan); or
you’re involved with organizations including:
- trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
- estates
- real estate mortgage investment conduits
- non-profit organizations
- farmers’ cooperatives
- plan administrators

In addition to filing taxes you may also need an EIN to open a bank account or apply for a credit card in the name of your business. Even if you’re business entity is currently a sole proprietorship you can still get an EIN and use it the same way, although it’s only required for those businesses that fall under the details listed above.

What You’ll Need to Apply & What to Do With Your EIN

Now that we’ve established what an EIN is and if you need one, lets talk about the nuts and bolts of securing your EIN from the IRS. You can apply for an EIN by fax, phone or email but the quickest way, and the way the IRS prefers, is online. The process will take only a few minutes, but you’ll need to have the answers to a few questions beforehand:

the type of EIN are you applying for – sole proprietorship, corporation, LLC, partnership or estate
the reason why you are applying for an EIN – it can be as simple as starting a new business or banking purposes or any number of other reasons
your legal name and Social Security Number

With the online application you’ll have access to your newly generated EIN as soon as you submit your application. The IRS provides an official document that you’ll download to your computer – make sure to save this digitally as well as print a paper copy to save with your other business records.

Resources

Author: Jake Snelson