BUSINESS PLANNING - THE ROADMAP TO GROWTH

In small business, hardly two other words promote fear and procrastination more than “business plan”.  It is often considered as an interruption to the day to day tasks of running a business; or, too difficult to contemplate.  When entrepreneurs think this way, they are on the road to problems. What is often missed is that the business plan has two primary functions (among several others)—to determine how much you know about your business; and, what you don’t know.  To skip the essential process of preparing a business plan exposes you to tactical or “crisis” management—doing tomorrow based upon what you just learned today. It is the roller coaster method for managing a business, and may be part of the reason why 4 of 5 new businesses fail.

This type of outcome is not inevitable.  A well-constructed plan can not only avoid the hazards of tactical thinking.  It also provides a road map to a more successful outcome.  The process of preparing a plan leads the business owner to examine all facets of the business, ask all of the questions that lead to strategy development, and produce an organized approach to the future.

HINT:   A business plan is not a static document meant to be done once, then gather dust in a file drawer.  The obligation to review and periodically update the document forces the discipline to really look at what you have done, compare it to your expectations, and take corrective action.

Carl Isbits, SCORE counselor.  email

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Make a customer not just a sale

There is a big difference between "making a sale" and "making a customer".   If you don't achieve the latter, you won't, in the long run, build your business.  After all, you don't want to always have to make that 1st sale over & over again.   You want to make sure your buyer will find VALUE in the transaction and BENEFIT from your product(s).  If this comes about from THEIR PERSPECTIVE they will want to continue doing business with you in ever increasing volume & cooperation..

That means you must UNDERSTAND your customer, their NEEDS, and fulfill in a way which converts that customer into a "brick" in building THEIR success.   It is a TWO WAY street when marketing.   You do need to meet your sales goal, yet understanding the customer is to have them become your ally in the marketing of your product.

So THINK TWICE how you promote your product.   Orders only on their own just for the sake of getting that order, often lead to dead ends.   But if you evaluate your customer's NEED BENEFIT and VALUE from the CUSTOMER'S POINT OF VIEW,
a long term relationship will develop resulting in growing future business volume.

HINT:   Picture yourself facing the customer across a table.   You are selling & he's buying - maybe.  You and the customer are on opposite sides of the table.   Now, try to picture yourself on the same side of the table, sitting next to him.   Now suddenly you are his ally,  his "partner".    That's the psychology you should project.

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2012 Tax Changes for Business

Whether you file as a corporation or sole proprietor here's what business owners need to know about tax changes in 2012.

Standard Mileage Rates 
The standard mileage rate in 2012 is 55.5 cents per business mile driven, 23 cents per mile driven for medical or moving purposes, and 14 cents per mile driven in service of charitable organizations.

Health Care Tax Credit for Small Businesses 
Small business employers who pay at least half the premiums for single health insurance coverage for their employees may be eligible for the Small Business Health Care Tax Credit as long as they employ fewer than the equivalent of 25 full-time workers and average annual wages do not exceed $50,000. The credit can be claimed in tax years 2010 through 2013 and for any two years after that. The maximum credit that can be claimed is an amount equal to 35% of premiums paid by eligible small businesses.

Credit for Hiring Qualified Veterans
The maximum credit that employers can take for hiring qualified veterans in 2012 is $9,600 per worker for employers that operate for-profit businesses, or $6,240 per worker for tax-exempt organizations. See Tax Credit for Employers Hiring Veterans This Year (below) for additional details on this tax credit.

Section 179 Expensing 
In 2012 the maximum Section 179 expense deduction for equipment purchases is $139,000 ($174,000 for qualified enterprise zone property) of the first $560,000 of certain business property placed in service during the year. The bonds depreciation is 50% for qualified property that exceeds the threshold amount.

Please review our website if you need further help.

ABC's of Accounting

Making a profit is the holy grail of any profit oriented business.  Accounting is the method needed to track profitability.   Accounting is the tool for information gathering in a logical fashion to determine what actions are necessary to run a profitable business.

Step 1:   Create a Chart of Accounts.    What you spend on, what you receive, where they come from and how often does each item appear.   This classification lets you make decisions and gives you proof of the transactions running the business.

Step 2:   Each transaction is recorded in a Journal and summarized by these accounts in a Ledger.   Journals depict Cash you received (receipts)  and Cash paid out (disbusements).

Step 3:   This information is summarized to produce  a General Ledger and is the basis for a Trial Balance.    The Trial Balance is listing of the receipts and disbursements.
If you are a positive (+) balance - YOU MADE MONEY.    If you have a negative  ( -balance then you didn't make a profit.  

Now you can look at the figures that make up this data and see where you spent your money and where your income is coming in.    Now you make decisions on what to do to turn a negative balance around or how to do more in order to gain greater  positive profit.

This system is employed in finite time frames.   Initially it should be done every week to
be sure you are on the positive (+) track or running a business that is (-) losing money.

HINT:   Do not shirk this job.    If you are too busy, engage someone to do it for you.
            Once you are on a profitability (+) track, it's ok to do this monthly, summarize
            quarterly, and of course yearly for our friends in the IRS.

Mike Lupo
SCORE Counselor
mlupo812@bellsouth.net
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Finding and hiring employees

As your business grows you want to hire a great new employee.   They are the face of your business!   How can you evaluate potential starters and pick the right one?

Historically networking family & friends is a nice safe start.  What other sources are available for prospects?  The latest method is through on-line access to new jobs.   The

most common job boards you must review are:   CareerBuilder.com;  Monster.com;  Indeed.com;  Dice. com (last one is a tech driven source)

Using these sites,  a fee is paid to search for and contact relevant candidates who have posted resumes.  Then you short list those that meet your criteria.   Once you pick the person, e-mail or phone for additional specifics to set up an interview.   TALK to them.

ASK THE RIGHT QUESTIONS:  For example....

1.     Exactly what are your qualifications in...."bookkeeping"?

2.     How much and what kind of experience do you have in..."bookkeeping"?

The point is to ask open end questions that stimulate the applicant to talk about themselves.    NEVER ask a question that will result in "yes/no".   You learn nothing.

LISTEN without replying immediately.    Count to 30 before responding.  This is a tactic

 that will cause the applicant to talk more.    We abhor silence when chatting.   By remaining silent the applicant will provide more details about themselves to fill the void.

Finally, when you do make the choice, clearly explain the first 90 days are a provisional

hire.    This is your disclaimer in the event you made a mistake.    

And...build into the compensation a small raise at the end of the 90 days to demonstrate your satisfaction with this person.   You don't have to announce beforehand.   

They will love you forever!

Eric Mankuta 

SCORE counselor

South Palm Beach FL  

emankuta@bellsouth.net

GOOGLE IS COMING TO BOCA RATON

GOOGLE IS COMING TO BOCA
AND YOU ARE INVITED

THE FIFTH ANNUAL SCORE   BUSINESS CONFERENCE      

FEATURING:  

   

JOE DEMIKE - GOOGLE'S DIRECTOR OF BRAND MARKETING   

WILL SPEAK ON HOW TO GROW YOUR BUSINESS WITH GOOGLE

YOU MUST HEAR THIS RIGHT FROM THE PEOPLE THAT CAN MAKE IT HAPPEN -  GOOGLE  

AND:

PATTIE LIGHT - OWNER OF PANDORA JEWELRY - SOUTH FLORIDA  

LEARN HOW SHE GREW HER BUSINESS TO 3 STORES AND $12 MILLION IN SALES IN JUST 19 MONTHS   

MUCH MUCH MORE SO 

SAVE THE DATE

SEE DEMONSTRATIONS OF 3D PRINTERS - SEE HOW THEY CAN MAKE A PROTOTYPE OF ANYTHING OUT OF METAL OR PLASTIC FOR A FRACTION OF THE COST OF THE WAY YOU DO IT NOW

CHOOSE FROM 20 FREE SEMINARS, TALK TO EXPERTS, GET ADVICE FROM BUSINESS LEADERS AND MUCH MORE.   

 

April 20th, 2013
8:00 A.M to 3:30 P.M

At Lynn University
Boca Raton

A FREE EVENT FROM SCORE

 ROOM FOR JUST 500  -  REGISTER NOW

HELP FOR YOUR BUSINESS STARTUP

The BOCA RATON Florida office of SCORE  is part of the national SCORE organization, with 384 offices across the country.  SCORE's 13,000 volunteers are men and women with significant careers in industry and the professions who provide Pro Bono  business mentoring to over 350,000 clients every year.

Since 1964 SCORE has helped over 8 million entrepreneurs.

The Boca Raton SCORE office has been voted # 1 in the nation in 2012 among all SCORE chapters.   Business mentoring and coaching services are provided:   online,
in person,  or via Skype.   For further assistance please contact us at:
SCORE
7999 No Federal Highway
Ste. 201
Boca Raton FL 33487
ph:    561) 981-5180
Or at our website here

Watch this space.    You can e-mail us for specifics:  Here