Mazuma is now Vyde

Resources

Category: Business Tips

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.

How to Offer Health Insurance as a Small Business Owner

When it comes to running your own business – the sky is the limit. You’re in charge of your hours, the size of your business, how much you bring in as profit and whether or not you bring on employees. But even though the list of perks is long, there are parts to running your own small business that seem difficult , time consuming, and complex. Offering health insurance to your employees or even making sure you have your own health insurance because you self-employed can seem daunting. Even though it takes some time to complete, offering health insurance as a small business owner brings benefits in many ways and is well worth the effort.

Do You Need to Provide Health Insurance as a Small Business Owner?

When it comes right down to it, offering health insurance to your employees is required by law if the size of your company meets the laws specifications. At the point of this writing, whether you feel like you’re a big company or not, you are required to provide health insurance to your employees if you have 50 or more full-time employees or the equivalent. You can search for a company to provide health insurance for your small business on your own or work with a broker. Using a broker can save you time and they can help you complete the paperwork required and provide you with all the ins and outs of the plans you’re considering. however, brokers earn their living by making a commission and you’ll be footing that bill – it’s well worth it if you’re looking to make the process as easy and painless as possible but worth considering going it alone if you’re working on a budget.

Finding insurance for your business will take some money in addition to time and effort but there are benefits that come by offering health insurance to your employees.

What You’ll Need to Apply for Health Insurance Coverage Plans

Apply for a health insurance plan for your small business is similar to applying for a business loan -the company requires documents and paperwork to complete the process. Gathering these items up in advance will make the application process easier, so here’s what we suggest you gather to get started:

employer name
business address (needs to be a physical street address, not a PO Box)
list of employees to be covered (if you’re covering one full-time employee, you’re required to cover them all)
Tax ID or Employer Identification Number (EIN)
Business start date
Payroll records (this will prove that you pay out salaries over $50,000 as stated in the law and also will help come tax time)
Industry Code (SIC)

You’ll also want to pull together information on your employees because you’re looking for group coverage. The health insurance company uses this information to decide on premiums and other costs to match your employee risk levels. Information to include here are:

names
ages
number of dependents
zip codes

How to Figure Out How Much Coverage You Need

Once you’ve decided if you need to legally offer health insurance, whether or not to use a broker, and have gathered up the necessary documents and information, you’ll also want to spend a few minutes looking at your financials to be sure you know how much you can spend. Now is a great time to check in with your accountant or bookkeeper if you’re not sure how much money you’ve got available for this. If you’re going it alone, you’ll need to consider the number of employees you have, how much you pay them, and how much you can afford to pay per employee each month for health insurance. The answer varies based on company but if you’ve got more questions, we’re more than happy to answer them.

How Offering Health Insurance Coverage Benefits You as a Small Business Owner

We’ve given you the details of why and how and now it’s time to let you know how offering health insurance as a small business owner can bring you big benefits. Here’s our list:

you can qualify for a tax credit(up to 50% of your contributions based on the specifics of your business) – to do so you need:
- fewer than 25 full-time employees or the equivalent based on working hours ( this is where paying attention to those that work part-time comes into play
- pay salaries of less than $50,000 per full-time employee, on average, each year
- front at least 50% of the premium cost of the small business health insurance
you can write-off health insurance premiums you pay as tax deductions – saving even more money
with a little bit more paperwork, you can set up your small business health insurance so that your employee can pay their portions of the premium with pre-tax money – that means they save cash and are more satisfied making it a win-win!
employees that have health insurance are more likely to go to the doctor when they’re sick and get yearly checkups – they’re healthier and that means less sick days and more productive employees

Now it’s time to start shopping for health insurance plans!

How to Define A Niche Market & Why It’s the Best Thing for Your Small Business

Odds are that even though you run a small business, you’re not a professional marketer or some type of marketing guru – unless, your business is marketing and then this post probably doesn’t apply to you. But for the rest of us hustlers and small business owners, learning everything we can about marketing is going to make growing and promoting our small business that much easier and that’s a win in our book. Today we’re talking about niche markets – what a niche market is, why you might want one and how to define a niche market for your business.

Lets get started.

What is a Niche Market?

A niche market is a subset of a larger market with it’s own particular needs and preferences. Often times you’ll hear marketers talk about market segments and although that’s similar to a niche market it’s usually more generic in purpose meaning that we segment by age, gender and so on. These same segmenting tactics are used in defining a niche market but they help us to pinpoint a group of people who are not only similar in general but also in specific details. For example:

Segmenting a market – we sell to women with young children between the ages of 0 months and 3 years because our product is diaper bags

Defining a niche market – we sell to women with young children between the ages of 0 months and 3 years because our product is diaper bags AND they also want a stylish boutique-level diaper bag that keeps them highly organized and falls within a moderate price point.

Basically, defining a niche market is drilling down until the particulars are highly defined making it a super-powered version of segmenting.

How Do You Define a Niche Market?

Defining a niche market really isn’t as difficult as it may sound or look. To do so, you’ll take any current market segments you have and then take it one step further. Some of the most common ways to define a niche include:

geographic (the buyer’s precise location – this can be a physical location or it can be a way to purchase – big box store, farmer’s market, craft fairs, holiday boutiques, etc.)
price (high, moderate, discount)
demographic (gender, age, income level, education level, employment, etc)
quality of goods (premium, high, moderate, low, cheap)
psychographics (values, interests, attitudes)

Remember a niche market is a subset of a larger market or market segment that has particular needs and preferences. While you’re looking to drill down to your niche market with the items bulleted above, you should also be asking yourself what the needs and preferences of this particular group are. You want to figure out what problem you can solve for them, or what need doesn’t seem to be being met by other products that are out on the market. This will help you target your niche market and outline the ways you’ll promote your product or service to them – by helping them with a problem or fulfilling a need!

Tip: Once you’re drilled down and gotten the specifics on your niche, the best way to define a niche is to basically write up a potential buyer profile. It sounds a little intense to make up a bio for an ideal customer, but we’ve seen it work dozens of times. An example would be:

Heather is a young mom who works part time. She has 2 small children – Sarah (2) and Aiden (6 mos). She’s at work a few hours every day so she drops her kids at a babysitter in the morning. She loves working out, so the kids also get to hang out with friends athlete gym play place why she works out 4 times a week. In addition, Grandma watches the kiddos on Friday mornings while Heather is at work, because that’s her babysitter’s day off. Heather is extremely organized and she’s a great mom because her diaper bag always has a change of clothes for each child, extra diapers, snacks, any medications they may need, and a variety of small toys or educational activities in case the kiddos need a change of pace. In addition, Heather loves high style, and because she’s often out and about with the kids she’d like a diaper bag that displays a sophisticated look but still is made of child-friendly fabrics so that it’s safe and effective for the kids. She’s looking for a superhero diaper bag – stylish for mom, organized so that everything has it’s place, not to big, not to small, easy to clean, and cost effective.

Why a Niche Market Can be Good for Your Business

We’ll cut straight to the point on this one and you don’t have to look far to see why a niche market can be good for your business. Here are just a few:

it’s a great way to attract new business
great way to increase in sales
simplifies the process of promoting, pricing and distributing your product or service
lowers the cost of promotion, pricing and distribution of your product or service

What niche markets are you going to serve? We’d love to hear about them in the comments.

LIVE WITH BEN – Basic Financial Questions to Ask Yourself Each Month

Want to grow your business? Don’t know what financial questions you should be asking yourself to do so? Being fiscally fit is more than just making MORE money – it’s knowing what your money is doing and having a plan.

Ben Sutton, CPA and co-found of Vyde, gives his expert advice on being fiscally fit, 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.

3 Ways to Boost Your Client Load

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!!

How to Respond to An Angry Customer

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:

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.

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.

Top Tech Tools for Your Small Business Tool Belt

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.

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.

How to Perform a 6 Month check-up on Small Business

Every business needs to perform a 6 month check up on their company. If you are good, you perform those along the way as well, monthly, weekly, daily, but a 6-month check up should consist of 3 different areas:

Value Chain Analysis
SWOT analysis
Revisit Quarterly & Yearly Goals

1.What’s a Value Chain Analysis?

This is where you look internally at the process piece of your company and see how you can improve in each area of running your business. This is very tricky to do impartially, but you need to be honest for your business’ sake. What bottlenecks do you see right now (don’t allow yourself to say, “that doesn’t count because we’re waiting for a part to solve that bottleneck, so we already know about that”–no! Be honest and write everything down. Remember, this is merely a survey and not a “To Do List.”

Areas of Analysis:

Support Activities:

Firm Infrastructure: Systems/Routines
HR: Recruitment; Formation
Technology Development: product design
Procurement of Resources: ensure resources availability

Primary Activities:

Inbound Log: Reception, warehousing, distribution of tasks
Operations: how administrative tasks get accomplished
Outbound Log: Storage, transportation, product distribution
Marketing & Sales: CRM, advertising, social media, email blasts, etc.
Customer Service: warranty, maintenance, referral rewards, discounts, etc.

2. What are your company’s Strengths Weaknesses Opportunities and Threats?

These questions are also hard to be impartial about, but this is very important to be honest here as well! Strengths and Weaknesses have to do with your company’s skills and abilities. Opportunities and Threats have to do with what is going on in the industry and marketplace and how can your company be benefitted or deterred due to Social, Legal, Environmental, Political, and Technological changes that are here or upcoming.

3. Why revisit Quarterly and Yearly Goals?

Yearly goals have to do with benchmarks, financial forecasts that you’re company wants to meet. Quarterly goals are more the month to month operational/sales goals your company has created in conjunction with smaller financial goals in order to meet the Yearly goals. If those goals are in a file that is never brought to light, what are the chances that your company will be able to meet them? Something important to remember is that those goals can change. When planning out a whole year many things change, Marketing, Technology, the best Processes for your product funnel, etc. Don’t feel bogged down and embarrassed to look at those goals. Be honest about where your company is with those. If you have decided to do something different, put the old goals in your “backlog” for later. If the industry has changed and there’s a new way that works better to accomplish your goals, don’t continue to follow the old plan just because you worked hard on it.

Outline of Quarterly/Yearly Goal Meeting:

Review:
- Vision: why your company does what it does
- Mission: who your company provides services/products for
- Strategy: how your company provides those services/products
- Yearly Goals: financial/operational goals
- Quarterly Goals: marketing/technology/process
Are you meeting those?
Do any changes need to be made?
What are the top priorities?
What can be pushed to the next year/6-months?

After this assessment, don’t start searching for a paper bag. This is not meant to be overwhelming but can even SAVE you TIME believe it or not! You’ll need to take your assessment and decide which pieces of your business need to change right away, which are right on track, and which can wait until the next quarter or year. Personally, I have a hard time with reevaluating because I feel like I’m throwing away hard work. Putting projects into a “backlog” where I can still call them back to attention when I need ideas is a great way to make sure your business is running at top efficiency and not wasting time spinning wheels when ideas are needed. As you get used to taking these steps every 6 months, your processes will be streamlined and you will not have huge, hair pulling out bottleneck issues that have gotten worse over time. You CAN DO THIS!!!

Frequently Asked Questions:

What is a Value Chain Analysis and why is it important?

A Value Chain Analysis assesses internal processes to identify areas for improvement within your business. It’s crucial for enhancing efficiency and productivity.

How do I identify my company’s Strengths, Weaknesses, Opportunities, and Threats (SWOT)?

Evaluate your company’s skills and abilities for Strengths and Weaknesses, and consider external factors like industry changes for Opportunities and Threats. Honesty is key.

Why should I revisit Quarterly and Yearly Goals?

Quarterly goals drive month-to-month operations and sales, while Yearly goals set financial benchmarks. Regular review ensures alignment with company vision and adaptability to industry changes.

What should I consider during Quarterly/Yearly Goal Meetings?

Assess your company’s Vision, Mission, and Strategy alongside financial and operational goals. Determine if adjustments are needed, prioritize tasks, and update plans accordingly.

How can performing a 6-month check-up benefit my business?

Regular assessments prevent inefficiencies from escalating, saving time and resources. By evaluating and adjusting processes every six months, businesses can maintain optimal performance and adapt to changes effectively.

How to Find the Right Business Licenses and Permits for Your New Business

Starting a business takes a lot of work. No matter which direction you turn, there seems to be a hundred different things to do with a million little details to figure out. Getting your business set up correctly from the start means you’ll be off on the right foot and not have to back track to do things right after you’re business starts to grow. But what do you need to start a business? It might not seem so simple if this is your first time launching a new venture, so we’ll start by covering the basics of licenses and permits.

Finding the Right License or Permit for Your Business

It’s true that one of the main reasons for licenses and permits is so that the government can track your revenue for tax purposes. However, it’s not the only reason you’ll want to make sure you have the right business license or permit. Licenses and permits also help protect the public (and that includes you when you’re acting as a consumer of products and services from the businesses around you).

Every type of business has varied requirements for the type of business permits and licensing that it requires. A lot of it depends on the type of industry and the location you’re operating in. The best thing you can do is figure out the type of business you fall under and then work from there.

What Type of Business Do You Have?

There are a variety of business types, but we’ll go through the most common ones and you’re sure to find that you fall into at least one category. Grab a piece of paper and a pencil so you can jot down notes and make a to do list so you hit the ground running.

Home based businesses or sole proprietorships typically need a permit from their local government to operate legally. If you operate under your name, you may not need a DBA, but if you’re using a business name and still filing as a sole proprietor, you’ll need to find out the specifics of filing for a DBA.
If you’re selling goods or services, you’ll more than likely need to get a sales tax license or a permit.
Professional licenses, signify the expertise level that an employee or business owner has – veterinarians, doctors, hair dressers, etc. – they all have professional licenses that need to be kept up to date.
Federally regulated industries, such as aviation, alcohol, agriculture also require specific federal licenses or permits.

Once you know what type of business you fall under, you’ll need to check your local state government page to see the specifics of what’s required for your state. You can access license and permit info for your state here.

Making Sure You Keep Up With Licensing and Permit Renewals

Once you’ve filed for and obtained the proper licensing and permits, you’ll need to be a responsible business owner and make sure to maintain them. These expenses can be counted as the cost of doing business and can be used as tax write-offs come tax time. Here’s what we recommend to manage the paperwork that comes with our business license and permits:

keep track fo renewal dates – set an appointment a week or two in advance in your phone so you make sure you don’t miss the deadline. It’s also smart to keep the links to the appropriate paperwork and web pages you might need so that you don’t have to waste a lot of time searching.
keep a copy of the paperwork you submitted for your current license/permit. That way you have it on record and if you have to reapply as part of the renewal process the majority of the information can be easily transferred over from your last application.
Make sure to display your licenses and permits in an easy to view location and that they’re properly protected. Some states actually require that you display them in a prominent location so customers can see them.
Pay attention to what’s needed if you expand your business. You may need to apply for additional permits or reapply or a different type of business license if you’re growing quickly.
Tax permits are different than the normal business license or permit, but you will need to also check out what types of things you’ll need to do to register for the appropriate tax permits and whether or not you need an EIN.

Operating a Home-Based Business – Make Sure You’re in Compliance

Out of all the business types, home-based businesses are often those that are found not in compliance when it comes to business licenses, permits, and keeping up on taxes. Our guess, is that often, the owners consider their business a hobby, aren’t looking to grow it to a substantial size or even think of what they’re doing as a business. We get that, but as accountants, we’d recommend filing for and maintaining the proper licenses so that your business can flourish.

So what type of business do you have or are thinking about starting? Have you started working to obtain the proper licenses and permits? How can we help?

Frequently Asked Questions

1. What licenses and permits are needed to start a business?

To start a business, you’ll need various licenses and permits depending on your industry and location. Common ones include a local business license, sales tax permit, and professional licenses. Check with your local and state government for specific requirements.

2. How do I determine which type of business license I need?

Identify your business type (e.g., home-based, professional service, federally regulated) and check your local state government website for specific licensing requirements. This will help you determine the appropriate licenses for your business.

3. How can I ensure my business stays compliant with licensing requirements?

Maintain compliance by tracking renewal dates, setting reminders, keeping copies of submitted paperwork, and displaying licenses prominently. Ensure you update licenses if your business expands or changes its operations.

4. What happens if I don’t obtain the necessary business licenses and permits?

Operating without the required licenses and permits can result in fines, penalties, and potential closure of your business. It can also damage your business’s reputation and legal standing.

5. Do home-based businesses need licenses and permits?

Yes, home-based businesses typically require local government permits to operate legally. Even if it’s a small venture, obtaining the proper licenses ensures compliance and can benefit your business’s growth and legitimacy.

How to Write a Killer Business Plan in 5 Easy Steps!

Whether you are braving the pitch world to find a financer on Shark Tank, or you are striving to get your team organized, you need a KILLER business plan. What exactly does that mean? Is it just an outline? Is it a letter to a bank? Is it a report? I’m sure it has trendy business graphs!!…What else do you need? What EXACTLY are the “powers that be” looking for in a confident and solvent business?

There are 5 main parts business professionals (financial tycoons) are looking for and they really aren’t that hard!

What does the playing field look like in comparison with your business/product? There are 2 high-level ways to do this: SWOT and Porter’s 5 Analysis of your business. This basically is the business world’s way of asking: What is your business good at?, bad at?, what is the rest of the industry good at?, and how can your business create opportunities in the industry?
What is your company’s Mission, Vision, and Strategy? This seems simple, but the business world is looking for how your company messaging, purpose, organization, and plan of action are intertwined with the plan that you have to move forward. This shows your business will be able to follow through with the plan, make changes along the way, and work hard to achieve the plan you are proposing. They feel that if you are committed to something, it will show through the lifeblood and purpose of the company.
What does it mean to them? The mentality of a 5 year old definitely applies here, in a good way! When preparing to fund a business venture you need to think selflessly about your dream business. It’s hard. This is a time that is easy to become offended, brings up emotional memories, and takes strides of courage. Just remember, they need to know why it’s important to them and why people should care about your best invention ever.
What’s the Plan? You’ve buttered them up, explained the business, explained why they should care, now you need to bring the organizing PIZZAZZ! (Not JOKING) When investing in a company/idea, people need to see that your business has thought through contingencies and clearly and concisely can get from point 1 to point 10 and all you need is a little boost from them. This should have general steps that show you know your weaknesses and how to overcome them, test groups, adjusting and re-adjusting the plan, specific dates and milestones, prep prior to and post product launch.
Where’s the After Party? Why would they want more? They didn’t ask for more…but you need to show them you are prepared. Give them pre-launch survey results, a chart outlining the key milestones with dates assigned, and another simple chart that shows and how long it will take until the business is profitable and then what the profit will look like after breakeven and on into the next quarter/year. Sample flyers and mock ups of what they can expect and that show what success looks like are never overboard but just help to build the vision you are hoping they’ll catch.

That’s pretty easy! Make sure to go through your data and get it right, practice what you’ll say, their names and titles, etc. If you are just doing this for your company, it is a GREAT place to build team vision for the future. Rally your group around you, share the plan, hand it out to everyone that needs one, and say a few inspirational words, a GO TEAM, and then get to work with the follow through! I know your business will be successful as you are prepared. Don’t be afraid to make a bold move. You have amazing ideas and the world needs more amazing ideas these days!

Vyde is a licensed accounting firm (CPA) based in Provo, Utah, and members of the AICPA. We provide professional accounting services to businesses and individuals, with a focus on small business bookkeeping and taxes.