Mazuma is now Vyde

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Author: Jake Snelson

Business Owners have good times and bad times.  It’s important to test your idea out, have a good support team, and work really hard–consistently.  If you are doing that and feel like you need a little boost or are experiencing a slight down time, consider thinking of your down time as an opportunity to prepare for future business.  One of my clients runs a successful restaurant in a college town. Their lag time used to get them down. It’s hard to be okay with less money when everything is stretched thin already! They learned that the summer was a great time to focus efforts on their catering business which they hadn’t had time for during the school year.  After one summer of doing that and being “patiently consistent” (my term), their next year was record income!

Here are some ideas for your business:

Organization

Focus on: All the projects you haven’t spent time on.  🙂 Some ideas: CRM, email segmentations, automations, software, clean up timecards, processes, taxes, hold the quarterly meeting you’ve never held (you can call it a bi-annual meeting 😉 ), work on negotiating lower rates as your purchases have risen to deserve a discount for bulk rate.

This may seem daunting but re-visit a project here with fresh eyes.  Do a little new research to bring it back up to speed, and get working on it as quick as you can before you talk yourself out of it.  Twenty minute increments can get an amazing amount of work done! If it’s a project like a CRM, you may be able to do a simple version of it right away and then have an assistant trained to do the tedious steps after you’ve figured out how you’d like it to work best.

Follow up

Focus on: Email subscribers, prospective clients, past clients, clients who have slowed down in purchases, comment in different social media groups, admin work that’s been put off, etc.

We all know there are those prospective clients/customers who have signed up for something but never reached out to us when we responded (or maybe we never responded).  Take some time to reach out to them personally and offer them a freebie for taking interest in your company. They may not remember signing up but a freebie will put them on the positive side and then they’ll remember the product they were interested in buying from your company.  **Extra mile: Personal touch for current clients-arrange to share an additional product with current clients at a special “current client discount.”  This could be a free treat or discount off of a product you know they can use. Think of something that’s not a big deal for you to give away and use it as a marketing tactic to remind customers that you are thinking about them.

New Ideas

Focus on: Marketing new products, test marketing, sponsoring events, attending events, signing up for events, advertising, collaborating with other companies, gaining more knowledge/research for your trade/industry, etc.

If there’s something you’ve been curious about creating, take time to market test it during the slow time.  Sign up for outdoor fairs to share your new idea, or your current ones, give small gifts/freebies for filling out a survey about it.  This is the right timing to test out adding onto your business too, not when it’s brand new but when it’s been established and you happen to have a lull.  Re-examine your marketing and targeting approach too. Are you sending the right message to the right people that will actually buy your product (sometimes this is a different group than the people you want to sell to).

All in all, don’t give up.  Whether times are slow or good, a boost will come if you take care of these 3 areas and keep consistent with your marketing and social presence.  Before you know it, prospective clients will be reaching out to you nationwide, and you’d be surprised at how many past clients are happy to hear from you and were just trying to get to their follow up list as well.

Best of Business to you!!

We work with a lot of entrepreneurs. Online sellers, professional bloggers, traditional mom n’ pop shops, rapidly growing brick and mortar specialty stores, and a host of professionals that provide a variety of services (everything from window cleaning to marketing and graphic design) to their customers, just to name a few.

Despite the vast differences in their business types, strategies, and personalities, we’ve found that there are quite a few things they have in common – we’re calling them entrepreneur traits.

And they seem to be the cause of much of our client’s success.

If you’re looking to be an entrepreneur, and are wondering if you have what it takes… read on. if you’re excited about what you’re reading then entrepreneurship is probably for you.

You maybe an entrepreneur if…

You dream big.

You have no hesitation when it comes to coming up with an idea and creating it into a full-fledged corporation overnight. You’ve got ideas that are scalable and your dreams of achievement and success include growing a business that will not only help your bottom line but will help your customers, and the world, as well.

You’re a problem solver.

Some people shy away from problems, you seem to run towards them. In fact, there’s nothing more exciting to you than a problem that you can wrestle with and come out on top. You’re constantly looking for new ways to do things, are interested in efficiency and processes. Most importantly, you’re looking at the world around you and finding real life problems that you can create feasible solutions to.

You don’t mind failure.

Being ok with failure doesn’t mean that you wallow in defeat. Instead you’re quicker than most to jump up and try again. You take notes of your failures and you’re almost systematic in how you fail – making adjustments and trying again and again in order to improve your process.

You’re a mover.

As a kid you more than likely had a hard time sitting still. As an adult, you’re constantly looking to learn new things. Movers and shakers are often entrepreneurs because they’re comfortable with keeping busy and they thrive on trying new things and executing new ideas. They’ve got a running list of things to do and they’re energized by it.

You’re hungry.

Every day you’re waking up hungry to get to work on your most recent project or idea. Instead of losing energy thinking and working on your big ideas you seem to be energized by it.

You’re all about the little things.

You never seem to be short on consistency to do the little things. In fact, you’re 100% sure that it’s the little things that make up the big successes (and just for the record… you’re completely right!)

You’re confident.

You’ve never lacked confidence in your ability to accomplish something. You’ve got plenty of skills, but you know that you’ll figure out and foster whatever skills you may be lacking if they’re needed to accomplish your goal.

You’re insecure.

With every bit of confidence you have, you have equal parts insecurity. You know that you have to be constantly learning new things and using your skills or you’ll find yourself behind the power curve. There might even be a little voice that tells you if you don’t keep learning and moving, you’ll never reach success and it’s that thought that spurs you on.

What other traits do you think entrepreneurs should have? How do you work to build these skills? Tell us in the comments.

It’s fairly common knowledge that some auto expenses can be used as tax write-offs, but today we’re giving you some of the common questions we hear about auto expenses and the finer points that go with them so you can make sure you’re making smart choices for you and your small business.

Question: Which is better – standard mileage rate or actual expenses incurred for your deduction on a vehicle used for business? 

Answer: It really just comes down to the numbers. 

Our standard rule of thumb – if the vehicle is smaller and has lower operating costs and maintenance expenses, it’s safe to say that the standard mileage rate is the better choice. If you’re driving larger vehicles, with higher gas mileage and expenses you’re more than likely better off with the actual expenses incurred method.

The numbers you’ll need to determine the number of miles driven for your business:

  • Total number of miles driven during the year
  • Total number of miles driven just for business

Question: Ownership – should the business, business owner or the employee have ownership of the vehicle? 

Answer: One of the simplest ways to manage ownership is to simply have the employee own the vehicle and then have the employer reimburse for business expenses. This is great for sole-proprietorships and the IRS is fairly fussy about write-offs on business vehicles so it’s important to follow the rules for your business type and keep detailed logs. 

Typically, when the vehicle is employee-owned, the business reimburses for business mileage incurred at the standard mileage rate. The amount received for documented business miles isn’t taxable to the employee and the vehicle expenses are therefore deducted by the employer. If you’re a single-member LLC and file a Schedule C with your personal tax return, you’re considered self-employed for tax purposes.

Make sure to ask your accountant, or read up on the IRS requirements, if you’re looking to purchase vehicles that will be owned by the company or business owner or manage a fleet of cars for a business that provides them to employees.

Question: Does it matter what type of car it is? 

Answer: You bet. Congress decided quite a few years ago that taxpayers should not be able to subsidize extravagant vehicles used by business. So what type of car is acceptable?

  • business vehicles are cars, SUVs and pickup trucks that are used for business activities

Things that don’t qualify:

  • vehicles used as equipment such as dump trucks
  • vehicles used for hire such as airport transports, limos, and taxis

Question: I’m new to the business vehicle concept, what do I absolutely have to know? 

Answer: Glad you asked. Here’s what we tell all our clients no matter the details of their particular situation. 

  • keep detailed records – the IRS is fussy about auto write-offs, so you’ll want to track mileage and expenses meticulously and keep the records for the appropriate amount of time
  • if you drive a lot for business, you’ll more than likely want to use the standard mileage rate to figure your deduction
  • business use is a legitimate deduction and should be claimed by the taxpayer – don’t miss out on this opportunity just because it seems scary or confusing!
  • if you have questions, read up on the IRS website, ask your accountant or someone that consults small business

Question: How do I know which miles I should track for business? 

Answer: If you’re asking this question, you’re probably already tracking and have realized that “business miles” might be trickier than you thought. Don’t worry. 

To begin, write down your odometer reading on the day you start using a vehicle for business and on the day the year ends. Business miles are those actually drive for business reasons – to visit a customer, meet a client, pick up supplies, etc. Miles driven to the bank, office supply store, computer repair shop, or to meet with your accountant or attorney (if it’s for your business of course) can also count as part of your mileage deduction.

Some driving might seem business related but isn’t a viable tax write-off:

  • Commuting to and from work from your residence isn’t deductible on your business or personal return
  • if you stop at the store on your way home from a business trip, the remaining miles from the store to your home can’t be included as business miles. If you’re a multi-tasker and try to combine your business and personal errands make sure you know the difference and note it in your log

Question: What are vehicle expenses? 

Answer: Here’s our list. 

  • gas and oil
  • tires
  • general maintenance and repairs on the vehicle
  • registration fees and taxes
  • licenses
  • vehicle loan interest
  • insurance
  •  rental or lease agreements
  • depreciation
  • large rental
  • tolls and parking fees

Sometimes questions arise while you’re on the road. We recommend tracking the mileage and expenses and then making a note to ask about these particular items as soon as you can. Once you have your answers you’ll be able to go back and adjust your log as needed and that way you’ll make sure to have accurate records and not miss out on any possible expenses.

What other questions do you have about vehicle expenses? We’d love to hear and answer your questions!

There is a lot to manage when you’re running a small business, but one of the most important things to take care of is managing the books. In addition to understanding what money is coming in and out of the business on a day to day basis, you’ve also got to be sure you’ve got things set up correctly for collecting and paying taxes.

Sales tax is probably one of the most confusing transactions that occurs, mainly because there’s a lot of gray area for those that run small businesses or sell online.

Sales Tax Defined

Sales tax is money collected at a retail’s point-of-purchase and is imposed by both state and local governments. It’s paid by the individual that is making the purchase, but that means as a small business owner you’re responsible for the following:

Figuring out the amount of sales tax that should be paid

Collecting the sales tax from the person purchasing from you

Turning over sales tax to the appropriate authority by the deadline outlined

Sales tax rates vary from state to state, which can lead to some confusion if you sell in more than one state or if you sell online.

Do You Need a Permit?

It depends on what your state requires. The best way to answer this question and many more for your specific state is to access state tax resources.

Not sure where to find your state requirements. You can look them up here.

How To Collect & When to Pay

You’ll need to check with your specific state for all the details but the general process of collecting and paying sales tax is as follows:

  1. You’ll record and report all sales, whether they are taxable or exempt, and the amount of tax due.
  2. You’ll submit a special tax return for sales taxes – usually states require small businesses and online shops to pay sales taxes quarterly and sometimes even monthly.
  3. Not paying on time means that you’ll be subject to late fees. Checking out the requirements for your specific state and/or consulting with a tax specialist or CPA is the best bet for making sure your system for collecting sales tax is in compliance with government requirements.

Sales that are Tax Exempt

You may have noticed that we mentioned in section above exempt sales and you may be wondering what all that involves. Although there may be exceptions, the general rules for tax exempt sales is as follows:

Resold items – retailers don’t typically have to pay sales tax on wholesale purchases since it’s assumed that the end consumer will pay sales tax on them at the end point-of-purchase. That said, many states require that you have a wholesale license, so you’ll need to check into the requirements and how to apply for one for your specific state.

Non-profits – sales made to non-profit organizations are also exempt

Raw materials – if you selling goods that will be made into other goods, they’re most likely considered raw materials and are typically tax exempt as well.

Selling Online & In More Than One State

This is where things can get a little tricky. If you sell online, your customers can live virtually anywhere and what state exactly is the sale made in? And what state’s rules do you’re follow – your state, or the state that you’re buyer lives in?

The first thing you need to determine is where your business has a physical presence. Wherever your store, office, warehouse, employees, etc. are you most likely have physical presence, also known as nexus.

You MUST collect sales tax for your nexus. 

If you do not have a presence in a state then you are not required to collect sales taxes. To make sure you’re applying the rules for nexus correctly, make sure you check the requirements for the states that you have physical presence in.

Sales Tax Rates for Selling Online or Out-Of-State

Once you know that you need to charge sales tax, it’s time to determine what rate you should charge. It sounds a little overwhelming to manage due to the thousands of sales tax jurisdictions in the United States.

Our best advice for those that sell online or have a large volume of out-of-state sales is to invest in online shopping cart and sale transaction software because many automatically calculate sales tax rates for you.

Now that you’ve got the details on sales tax, what questions do you have for us? We’d love to hear them in the comments.

It’s inevitable really. When you run a small business, or any business at all for that matter, you’re bound to find an unhappy customer. It could be your product, your offered services, your shipping and return policies, or just the fact that they’re having a bad day – but when it comes to angry customers, there are right ways, and wrong ways, to handle it. So what should you keep in mind while handling a unsatisfied customer? Here are our top tips:

Set Up an IRS Payment Plan

Know your Return and Refund Policies Well

Although you should strive for a 100% satisfaction rate, it’s just not always possible in the world we live in. Some unhappy customers will be displeased enough that they might aim for more than what’s fair when it comes to returns and refunds.

But satisfying unmet (and often unrealistic) expectations isn’t worth going out of business or putting your bottom line at risk. Knowing your refund and return policies inside and out allows you to get creative when working to help unsatisfied customers. By doing so, you’ll know just how much you can give without losing money because no one ever stays in business by paying their customers.

Tip:  A good rule of thumb when managing poor reviews and complaints is to take it in perspective. If they’re complaining about something that you’ve heard quite a few times already, it might be something you really need to investigate. If it’s an issue you’ve never run into before, work to make amends, keep the issue at hand in mind, but don’t stress over a solitary complaint unless it’s something that warrants more attention (i.e. safety concerns on a product or service might be an exception)

Listen to Understand

No one likes to feel like their concerns are falling on deaf ears. If you have employees who might be the first person to make contact with an angry customer, make sure you let them know the approach that’s expected. A great phrase for an employee to follow up with after hearing a complaint is, “I can understand your frustration with fill in the blank. I’d love to introduce you to my manager so that we can make sure this issue gets resolved and we get you what you need.”

Always treat every customer as if their concerns are important to you. Listen to really understand, asking questions when needed. If an angry customer turns irate, simply address that you can see this is creating a large concern for them, and then ask that they lower their voice or suggest that you have the rest of the conversation in a quiet and more private location.

Communicate With Respect

With online review sites, social media rankings, and a myriad of other places for customers to log their complaints, it seems like you and your business might be under fire.  The anonymity that accompanies these methods often leads clients to believe they can say anything without hurting anyone. But it isnt’ true, individuals and businesses alike can suffer dire consequences from a lack of communicating with respect.  Here’s what we suggest:

  • Take a moment before you respond – how long you take depends on the situation, but it allows you to manage emotions and also think through what options you’re really to offer
  • Discourage inappropriate language or name calling – there are plenty of ways to communicate without these options and they should always be used when in a business or professional setting – by all parties
  • Keep venting to a minimum – talking through a situation with another employee or a manager is fine. Hashing out a bad customer experience with everyone is just fueling the fire.  If you’re having a hard time shaking it off, take a break, or ask your boss or business partner to handle the next few customer interactions. Then work to figure out a way that you can develop a thicker skin when handling customer complaints and put it into practice.

Impact of Retirement Accounts and Investments

Wow Them with Your Approach

So far, we’ve covered how to handle the basics of customer complaints. Now we want to cover how to turn a poor interaction into a good one so you leave your previously unhappy customer with a good taste in their mouth. Here’s a few ideas on how to make that happen:

  • Respond in like manner – we don’t mean match their tone or attitude, but rather communicate with them in like kind or one step above. If a customer leaves a bad review, promptly respond to the review online, but also consider calling or emailing them to follow up and see if their are additional concerns. If they come into your office or store to complain, discuss the concerns face to face – to step it up a notch, consider introducing your manager or the owner
  • Gratitude goes a long way – whether we like it or not, negative feedback is probably more effective for us as small business owners than any positive reviews we might receive. Why? Because with complaints we can start to explore ways to improve and grow our products and services. Saying a sincere thank you for helping you understand, improve, or make things right is going to make a major impact – and those customers often are the ones that become your biggest fans.
  • Make it known that you want to make it right – when conversations get heated or turn into a laundry list of complaints it’s easy to just jump to the quickest solution and hope that it stops the complaint dead in it’s tracks. But before you go to work on firing back excuses or solutions it helps to let the customer know that your top desire is to make it right. After you offer any retribution  or refund that you’re willing to provide, you can ask if there’s anything else that you can do. If they give you an answer you can’t say yes to, then simply apologize for the inconvenience and express again that you’re grateful that they were willing to communicate with you so you could do your best to make it right. There is no reason to make excuses or give details as to why you can’t fulfill their additional requests.

How else do you handle angry customers and negative reviews? We’d love to hear your ideas in the comments.

FAQs about Handling Angry Customers and Negative Reviews:

What’s the significance of knowing return and refund policies when dealing with unhappy customers?

Understanding policies helps balance customer satisfaction and business sustainability. It allows flexibility in resolving issues without compromising profitability.

How should businesses approach complaints that seem repetitive or unique?

Repetitive complaints signal systemic issues needing investigation. Unique complaints merit attention but shouldn’t cause undue stress unless safety or critical matters are involved.

How crucial is respectful communication when responding to negative feedback?

Respectful communication is paramount for reputation management. It entails thoughtful responses, discouraging inappropriate language, and avoiding public venting, fostering professionalism.

What strategies can turn negative interactions into positive experiences for customers?

Respond promptly and considerately to complaints, showing willingness to address concerns personally. Express gratitude for feedback, emphasizing the commitment to rectify issues and improve.

How can businesses navigate customer demands beyond their capacity to fulfill?

Prioritize customer satisfaction while acknowledging limitations. Offer sincere apologies, express gratitude for communication, and strive to resolve within feasible boundaries, maintaining goodwill.

Every small business needs a tool belt.  Initially many small businesses start out with an idea, a plan, and then grow to crazy and out of control without knowing how to organize/fix the problem.  Many successful small businesses have learned that it’s important to devote resources (ie: time and money) to a few top tools. Small business ownership requires a customizable tool belt with different tools to do different things…

  • Coaching/Consulting companies need: CRM,  Emails Automater, Project Management, Images, Social Media Scheduler….
  • Online Sales companies need: Really great online shop and really great website…and then the other things mentioned above
  • Preschools/Dance Studios/Companies that offer classes need: really good online scheduler, website, online payment, online registration form, and all the other things mentioned above.
  • Restaurant/Bakery companies need: Great following on social media, Email blasts, pics of food, really great website
  • Blogger/Vlogger companies need: Great internet connection, microphone, upload speed, editing software, etc.

 

With these types of companies in mind, there are other adjustments to be made of course, however here are a few of our favorite tech apps and solutions and why we love them.  Don’t take our word for it, what are your favorites? What have you thought about these options?

  • CRM: Customer relationship management tool Hubspot is online, cloud based, free, but with options to move up with a larger company size.  This is ideal for tracking sales goals, information about prospective clients, current clients, and what calls/emails need to be sent and when.
  • Graphic Design Tool  Canva, Lets you easily create many free beautiful graphic design pieces for free, and they have stock photos for cheap/free as well.  Whether you need to create a post for social media, a Facebook cover image, a flier, or poster, this makes graphic design something very easy to accomplish in no time.
  • Project Management: Everyone needs a tool that tells them what to do and when, all while assigning tasks out to other people and being able to communicate/attach the pieces that go with that task.  I have a few favorites (remember, I am in LOVE with Project Management) Asana-very professional, sleek design, Trello, very similar but with a more casual design, Airtable-easily becoming a more popular option, made of spreadsheets that can do everything you ever wished a spreadsheet could do! ,
  • Team Communication: Slack, This is great when you want to chat about different pieces of a team project, send documents that you aren’t sure are ready for a project management board, and question your boss or employees about how they do their job (we all have those days 😉 )
  • Emails Automated: MailChimp – This software is like an onion, it has many layers.  In it’s most basic form, your team can send emails to your clients/potential clients.  In a more complicated form, your team can set up sales funnel email chains to send automatically, create lead pages, track SEO from different links created, send out invites to events, attach video, images, and audio all without (or with if you choose) using code and looking great while doing that!
  • Social Media Scheduler:  Hootsuite -Schedule multiple posts to go out through multiple social media platforms at different times of the day/night and then track who says what about those posts, what the current #hashtags are, and how your posts stack up in their SEO competition.  My favorite function is getting a whole month of social media posts scheduled to be sent out in a couple of hours.

Coaching/Consulting companies need

Here are two videos I made on my Facebook page previously that talk about these options and more in-depth.  Getting my contacts organized and Funnels and Favorite Small Business and Life Hacks .   Let me know what you think and what has worked for you.  Thanks for all you do to build the small business community in a STRONG way!

Frequently Asked Questions:

What essential tools do coaching/consulting companies need?

Coaching/consulting firms benefit from CRM systems, email automation, project management, and social media scheduling tools to manage client interactions efficiently.

What are the key requirements for online sales companies?

Online sales businesses require robust e-commerce platforms, high-quality websites, and tools like CRM, email automation, and project management to support their online operations effectively.

What tech solutions are crucial for preschools, dance studios, and class-based businesses?

These businesses necessitate a reliable online scheduler, website, online payment system, registration forms, alongside CRM, email automation, and project management tools to streamline operations.

How can restaurants and bakeries leverage technology for success?

Restaurants and bakeries can benefit from a strong social media presence, email marketing campaigns, appealing food imagery, and a well-designed website to attract and retain customers.

What are the essential tools for bloggers and vloggers?

Bloggers and vloggers require a stable internet connection, quality microphone, fast upload speeds, and editing software. Additionally, they can utilize CRM, email automation, and social media scheduling tools for audience engagement and growth.

 
 
 

When it comes to running, and owning, a small business, it seems like you have to know and be able to do just about everything. However, one thing that many entrepreneurs and small business owners don’t necessarily think of, is how to make their business operate (or get back on it’s feet quickly) when a disaster strikes.

It may seem a little crazy to plan for natural disasters and freak accidents, but if you think back across the last few years, we’ve had plenty of big snow storms, hurricanes, and flooding to make you rethink how crazy planning for a disaster is. (yep, not crazy at all!) Even something as simple as a large semi rolling over on a busy street, a fire, or a chemical spill in your local neighborhood can keep your business shut, for a few hours or even days – so it’s time to take disaster planning for your business seriously because doing so can help you minimize losses and emerge relatively unscathed in case you’re in the path of whatever disaster might strike next.

Make a List… or Several

Taking inventory of what you have and what you might need is crucial and it’s an easy place to start. We’ve bulleted all the items we think you should either currently have a list or should make one below:

  • employee names, numbers, and emergency contact information
  • a list of the mandatory equipment that you’d need to keep your business running
  • any first aid and office essentials that you have or might be needed in case you need to house employees for a time
  • a list of important documents/things you’ll take with you in case you have to leave your building quickly (client list, employee contact information, etc.)
  • what your protocols are for fire, flood, natural disaster, shooter, etc. and any appointed leaders to oversee them

Use Multiple Ways to Communicate

Technology is almost constantly at our fingertips, but deciding on a few ways that you’ll communicate with employees in case of a disaster makes life a whole lot easier. Sending email blasts, text messages, and voicemails to employees is a great way to alert everyone of what’s happening. You may even want to have an official company social media account and encourage all your employees to follow it. We highly recommend establishing and using multiple channels so that everyone is on the same page. Making sure to inform everyone of the channels your business uses, and then also establishing a protocol for what will happen during an emergency ahead of time will make executing it easier as well as keep your employees safe and looking for additional instructions from you.

Move to the Cloud

When it comes to making things accessible to everyone, a cloud based storage system for data and files seems to be a no-brainer. Yet many small businesses choose alternatives because it’s an easy way to cut costs. We understand the need for budget-friendly options, but we also believing that killing 2 birds with 1 stone might be the better choice. Moving to the cloud means that your information is safe, secure, and easily accessible. But it also eliminates the extra strain that might occur if your building floods or burns to the ground damaging every piece of technology you have and the server that contains all your work and client files. Cloud storage also provides your company to run from virtually anywhere you can get internet access and that means employees can work from home, or even from an alternative location for a time without a lot of headache for you.

Ensure Workers Safety

Thinking through what you and your staff may need during an emergency is one of the best ways to prepare and can be as simple as cataloging what you currently have in your office and walking through some safety procedures during your next company meeting. Here are a few things to think about:

  • is there enough food and water on the premises that you could stay comfortably?
  • are first aid kits, flashlights, extra bathroom supplies, and petty cash on hand?
  • do you encourage your employees to exchange personal cell numbers and do you have updated emergency contacts for everyone in your office?
  • if it’s not you, who has been appointed to “call it” sending workers home before large storms hit or making sure everyone stays in place until it blows over?

What other items would you add to make your emergency planning bullet proof? We’d love to hear your ideas in the comments.

1. Why is disaster planning important for small businesses?

Disaster planning is crucial for small businesses to minimize losses and ensure quick recovery. Planning helps businesses operate smoothly during and after natural disasters, accidents, or emergencies, reducing downtime and financial impact.

2. What should be included in a disaster planning checklist?

A disaster planning checklist should include employee contact information, mandatory equipment lists, first aid and office essentials, important documents to take during an evacuation, and protocols for various emergencies such as fire, flood, or active shooter situations.

3. How can businesses effectively communicate during a disaster?

Businesses can use multiple communication channels such as email blasts, text messages, voicemails, and social media to keep employees informed. Establishing and communicating these protocols in advance ensures everyone knows where to look for updates during an emergency.

4. What are the benefits of using cloud storage for disaster planning?

Cloud storage provides safe, secure, and easily accessible data and files. It protects against data loss due to physical damage to the office and allows employees to work from anywhere with internet access, ensuring business continuity even if the physical office is compromised.

5. How can businesses ensure employee safety during an emergency?

Ensuring employee safety involves having enough food, water, first aid kits, flashlights, and other essentials on hand. Regularly updating emergency contacts, encouraging the exchange of personal numbers, and appointing someone to make critical decisions during emergencies are also vital steps.

Part Time Businesses You Can Start Today

If you’re like most people, starting a part time business isn’t about becoming rich. It’s about doing something you love, making a little money on the side, and adding some flexibility to your already existing lifestyle. Part time businesses are also great for growing long-term wealth and providing a sense of security in case your current full-time job doesn’t pan out like you might like. in the end it might become your dream job and leaving your current 9 to 5 will be your choice, but for now, here are 6 part-time businesses you can start today:

  • Service businesses – no matter what people are always needing hair stylists, barbers,  house sitters, pet sitters, tutors, dog groomers, property managers, virtual assistants and so on. And the best part is that everyone is looking for one of these that fits their current lifestyle and budget so you’ll not be short on potential customers.
  • Consulting of all kinds – maybe you know something about marketing, small business, or want to be a life or fitness coach. Whatever you specific topic, there’s someone interested in learning from, and paying, a coach/expert to share their knowledge.
  • Tradesmen – it might seem like learning a trade is old-fashioned, but in a world where custom details and quality are becoming what set us apart, tradesmen skills are in high demand. Masons, tilers, cabinet makers, painters, seamstresses, etc. are easily trackable online so you can find one in your area.
  • Design – looking for someone who has an eye for color and layout. Whether you’re good at landscape, graphics or interiors – demand for those with creative flair and an eye for trend is high.
  • Direct selling – there are so many direct selling companies available, that it’s easy to find one that fits your personality and lifestyle. Odds are you’re already currently using a product from one of them! Make sure to do your due diligence as some direct selling companies are actually illegal business schemes. According to a recent study Monat, Scentsy, and doTerra are the top 3 MLM (multi-level marketing) companies of 2018.
  • Start a blog – you’d be surprised how many people want whatever information you might have on a certain topic. Are you an avid foodie, do you love exercise and know a lot about nutrition? Maybe you’re a rockstar parent and have read every book out there on the topic. Whatever your passion is, it’s possible to share it with the world and earn a income through blogging.

start your business

Looking for something bit more seasonal? Here’s our short list of season side hustles that will earn you some extra dough:

  • irrigation and sprinkler repair
  • tour guide for your local area
  • paddle board, paddle boats, kayaks rental
  • yard maintenance
  • food truck or snow cone shack
  • seasonal sports instructor – golf, tennis, swim, ski
  • bed and breakfast
  • air B’nB
  • snow or leaves removal

Ready to start your business but not sure what you need to be legal? We’ve got you covered. Check out licenses & permits, bookkeeping for small business here.

 

Summer is here. You’re ready to hit the beach, enter the theme park gates, jump on a jet plane or even just hit the open road. We hope you get a chance to relax wherever your journey takes you, but we wanted to share a little expert advice about how your summer vacation plans might offer some financial bonuses for your small business.

Ben Sutton, CPA and co-found of Vyde, gives his expert advice on what expenses you can take from your vacation plans this year and turn them into write-offs for your business in this episode of Live With Ben. Grab a pen, paper, and your favorite beverage and get ready for these useful tips!

Have questions? We’d love to answer them and talk to you about setting up a strategy for bookkeeping and taxes for your business. Contact us here. 

 

Business Costs

Business costs, taxes, and all that financial stuff might take some time to understand or even a class or two, but you can understand the simple nuts and bolts version within just a few minutes. The important thing, is that you grasp the big picture, so that you can understand the details once it comes tax time or you need to sit down with your accountant. Read on for a brief overview of how business taxes work.

We’re going to cover 3 aspects to business taxes today – with these, you’ll have a firm grasp of what your accountant is talking about (or how to handle the do-it-yourself tax software you’re using) a little bit better. In any business, you’ll need to address the following when it comes to finances and taxes:

  • general business costs
  • tax deductions
  • asset depreciation

General Business Costs

When the say it takes money to make money – they’re talking about business costs. It’s fairly easy to see that to run a business there is always going to be some expense involved. Even if you’re goal is to keep a low overhead, you’re going to have to pay a little to make sure you can keep your shop’s doors open. So lets talk about general business costs.

If you’re just getting started with your business it most likely will fall into one of these 3 categories: 1) brick-and-mortar, 2) online, or 3) service providers. These business types are different than your business entity – you can read more about that here.  

Each business may vary a bit in startup costs, but everything on the list below should be considered. If it is an expense for your business, record it. If it isn’t, simply cross it off and make a note on why it’s not an expense for you.

  • licenses & permits
  • insurance
  • lawyer services
  • accountant and bookkeeper
  • office space
  • equipment & supplies
  • utilities
  • communications – internet and phone lines
  • inventory
  • employee salaries
  • marketing & advertising
  • market research – for either promotion or product creation
  • printed marketing materials
  • website

Once you’ve recorded down the price for those expense which apply to your business, you’ll want to add them all up to get an idea of how much you’ll need to invest to make your business run.  Some items have well-defined costs, others are a little more flexible. The most important thing you can do is to estimate (and even estimate a little high) so that you’re not scrambling for cash later.

If you’re in the planning stages before actually starting your business, you’ll want to include details on each of the costs and be as accurate in your figures as you can. You’ll even want to put it in a formal presentation that’s easy to understand if you’re looking to acquire startup funding or secure a loan from a bank or other lending institution.

Looking for ways to cut business costs? We give 20 Quick and Easy Ways to Cut Business Costs here.

General Business Costs

Tax Deductions

Odds are you’ve already heard about tax deductions and what they can do for your business. Truth is, tax deductions can be a business owner’s best friend. If you’re wondering what a exactly a tax deduction is, the simplest definition is that it’s a credit that is subtracted from your income and therefore lowers your taxable income.

The IRS allows you to take either a standard deduction or an itemized deduction. With a standard deduction the IRS allows you to deduct a specific amount without requiring an y record keeping or proof of deductions. But standard deductions are only available on personal taxes.  An itemized deduction allows you to calculate all of the deductibles you qualify for  (which can often be much higher than the standard deduction) and subtract that from your income.

If you want to read more about tax deductions and what the IRS will accept you’ll want to visit this post. 

Want to know what tax deductions you might be missing, read the Top 5 Missed Deductions here.

Asset Depreciation

Many businesses rely on at least some physical assets to stay operational. Even if you’re a solopreneur, you’re bound to use a computer, office equipment, a car and so on to accomplish the tasks of your business. But these pieces of equipment don’t last forever, so it’s important that you show that they lose value over time in your company’s books.

First lets cover a bit of vocabulary, so we’re all on the same page.

Depreciation – the act of quantifying the loss of value for a specific item or the portion of an asset’s cost that is consumed during a certain accounting period. As an item depreciates, some of it’s value or profit now becomes an expense, because you’re using up that portion. If you imagine a copy machine that can only give you 5000 copies before it won’t work, the value of that machine would depreciate in value with every copy made until all 5000 copies were used. The same goes for any piece of equipment.

Amortization – refers to intangible assets like contract rights, and intellectual property that has a fair market value. If you were the company that made the 5000 copies copy machine, the blueprints for how to make the machine or the rights to be the sole manufacturer of that machine would be things that might amortize.

It’s easy to confuse the 2, but it’s important to know the difference and even more so to understand how to calculate depreciation. To do so, you’ll need to define the following three things:

  1. Useful life – the time period the asset can be used before it stop functioning. (for the copy machine it would be 5000 copies)
  2. Salvage value – the amount of money a company could hope to recover if they sold the asset. (If you were to sell the copy machine before the 5000 copies were up, how much could you make? More if there were more copies available, and less if there were few, etc.)
  3. Obsolescence – when the asset will become obsolete and need replacement. (in our simple example of the copy machine, it becomes obsolete when the 5000 copies are made; however in real life, we know that copy machines can make more copies if they receive regular maintenance, employees don’t abuse the machine, and we replace the ink cartridges and clean the rollers, etc.)

You’ll then define these values against your asset’s purchase price.

A few things to note:

  • depreciation is figured based on the historical value of an item and it’s likely lifespan, as opposed to the cost of replacing it now. For things like cars, computers, and machinery – market value tends to be less than the recorded amount, but for things like property, the market value can be higher than what’s listed in your balance sheet.
  • Not all assets depreciate – items that are predicted to last a year or less don’t qualify for depreciation (our 5000 copies copy machine may fall in that category if the company tends to make more than 5000 copies in a year)
  • You have to actually own the asset to claim depreciation – so leases on big machinery, buildings, cars aren’t allowed.

The straight-line method of figuring depreciation value is simple:

Depreciation expense = (asset purchase price – salvage value) / useful life

Asset Depreciation

FAQs for Business Costs, Taxes, and Financial Management

1. What are general business costs, and why are they important?

General business costs refer to the expenses necessary to operate a business. These costs include items such as licenses and permits, insurance, office space, equipment, utilities, inventory, and marketing. Understanding and tracking these costs are crucial because they help you budget accurately, ensure your business runs smoothly, and prepare for potential financial challenges. Properly managing these expenses can also impact your tax deductions, as many business costs are deductible.

2. How do tax deductions work for businesses?

Tax deductions reduce the amount of income that is subject to tax, thereby lowering your overall tax liability. For businesses, deductions can be itemized, meaning you list specific expenses such as office supplies, travel, and salaries, which are then subtracted from your income. The IRS allows for these deductions to encourage investment in business operations. Proper documentation and understanding of eligible deductions can significantly reduce the amount of taxes you owe.

3. What is asset depreciation, and how does it affect my business taxes?

Asset depreciation is the process of allocating the cost of a tangible asset over its useful life. This accounting method recognizes that assets like machinery, computers, and vehicles lose value over time. Depreciation reduces taxable income by treating the loss in value as an expense. It’s calculated using the asset’s purchase price, its useful life, and its salvage value. Accurate depreciation accounting can provide tax benefits by reducing your taxable income.

4. Why is it important to estimate business costs accurately?

Accurately estimating business costs is essential for financial planning and stability. It helps you budget effectively, avoid cash flow issues, and ensure that you have enough funds to cover all necessary expenses. Overestimating costs can prevent financial shortfalls, while underestimating can lead to unexpected financial strain. Accurate cost estimation is also crucial when seeking funding or loans, as it demonstrates thorough planning and financial responsibility.

5. What are some common ways to reduce business costs?

There are several strategies to reduce business costs, including:

  1. Outsourcing non-core activities: Hire freelancers or external firms for tasks like accounting, marketing, or IT support.
  2. Negotiating with suppliers: Secure better deals or discounts on bulk purchases.
  3. Reducing utility expenses: Implement energy-saving measures and switch to cost-effective service providers.
  4. Utilizing technology: Invest in software that automates tasks and improves efficiency.
  5. Remote work: Allow employees to work from home, reducing the need for office space and associated costs.