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Blog's for November, 2019
http://www.DrLaura.com
Dr. Laura
2024-03-19T01:23:57Z
2024-03-19T01:23:57Z
Dr. Laura
Locking Up Supplieres When Selling Online
Staff
http://www.DrLaura.com/b/Locking-Up-Supplieres-When-Selling-Online/-713914727640325255.html
2019-11-19T17:17:00Z
2019-11-19T17:17:00Z
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<strong> </strong><strong><em> </em><em><br /></em></strong>
</ul>
<div><strong><em>By Cliff Ennico</em></strong></div>
<div><a href="http://www.succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com</a><strong> </strong><em> </em></div>
<blockquote>
<div><br /><br /> "<em>I have been selling merchandise on eBay and Amazon for some time. I would like to build a 'brand' for the merchandise that I sell, but I'm being told that the only way to do that (since I'm not the manufacturer of these goods, only the distributor) is to get an exclusive distributor agreement with each manufacturer so that I am the only person selling these goods on eBay and Amazon.</em><br /><br /><em>What do you think of this idea? If it's a good one, how do I go about negotiating contracts with these manufacturers?</em>"</div>
</blockquote>
<br />Generally, it's hard to build a "<em>brand</em>" online when you are not the manufacturer of the merchandise you sell. Most new sellers on eBay and Amazon make the mistake of selling goods that are "<em>all over the map</em>". While this may be a good way to get started in online sales and "learn the ropes," you won't be able to grow an online selling business unless:<br />
<ul>
<li><span>You specialize in a merchandise "<em>niche</em>".</span></li>
<br />
<li>You have merchandise that isn't easily available elsewhere.</li>
</ul>
<br />Unless you have an established track record of selling online, manufacturers probably will be hesitant to deal with you unless you show them you are creditworthy and have the expertise and sophistication to maintain their brand image online. Most large manufacturers won't want to deal with you at all (they deal only with other big companies like themselves), but many smaller family-owned businesses may give you a shot at representing their merchandise.<br /> <br /><br />If your manufacturers are willing to give you the exclusive right to handle their merchandise online, here are some of the key points you will have to negotiate with each manufacturer.<br /><br /> <br /><em><strong>1. <span style="text-decoration: underline;">The Scope of Your "Exclusive Territory".</span> <br /></strong></em>Will you be the manufacturer's exclusive distributor for the whole Web? Only eBay? eBay and Amazon? You should seek as broad a territory as possible. Also, since people can access the Web anywhere in the world, you should not accept any sort of geographic boundaries on your activities (for example, "<em>online sales to customers in the continental United States</em>"), as there is no practical way to enforce them.<br /><br /><em><strong>2. <span style="text-decoration: underline;">The Term of the Agreement.</span></strong></em> <br />Once you establish an online "brand" for a manufacturer, it's a sure bet they will be approached by other online vendors offering to do a better job than you can. To protect your investment, you should ask the manufacturer for as long a term as possible (I recommend at least five years), with options for you to renew for additional periods.<br /><br /><strong><em>3. <span style="text-decoration: underline;">Will You Be Allowed to Carry Competing Merchandise?</span> </em></strong> <br />Just as you want an "<em>exclusive</em>" for online sales, your manufacturer may want an "<em>exclusive</em>" as well by prohibiting you from carrying their competitors' merchandise. You should seek to keep these as limited as possible: for example, if a jewelry designer asks you not to deal with "<em>any other jewelry designer</em>", you can respond by offering not to deal with "<em>any jewelry designer who specializes in Celtic inspired designs.</em>"<br /><br /><em><strong>4. <span style="text-decoration: underline;">Will You Be Required to Purchase "Minimum Quantities" of Merchandise?</span> </strong></em> <br />In a "<em>true</em>" distributorship, you buy goods from the manufacturer at wholesale prices and then resell them online, keeping the difference as your profit. Some manufacturers will grant you an "exclusive" only if you agree to buy minimum quantities of merchandise each month or quarter. Keep these as low as possible, and negotiate a credit for any merchandise you return to the manufacturer that has been in your inventory for an unreasonably long time.<br /><br /><em><strong>5. <span style="text-decoration: underline;">Will the Manufacturer Require You to Sell at Specific Prices?</span></strong></em> <br />It is illegal for a manufacturer to dictate your resale price, or set a maximum resale price for their goods. The law is hazier on whether a manufacturer can set a minimum resale price. If a manufacturer engages in "<em>minimum advertised price</em>" or MAP pricing, you may have to go along with it. Just be sure that you retain the right to offer "<em>clearance</em>" prices for merchandise that is in your inventory for a long time if the manufacturer refuses to take it back.<br /><br /><em><strong>6. <span style="text-decoration: underline;">Will the Manufacturer Agree to Notify Other Distributors of Your Exclusive Rights?</span> </strong></em> <br />Your agreement should contain a clause requiring the manufacturer to notify all of its other distributors of your exclusive online rights, specifically prohibiting them from selling the manufacturer's goods on their own websites.<br /> <br /><br /> Here's a final question you should ask yourself: how will you deal with "<em>retail arbitrageurs</em>" and other folks who circumvent your exclusive relationship by buying the manufacturer's goods (legally) at retail and then reselling them online? If this is a serious problem (lots of sellers are doing this), you may have to send them nasty letters ordering them to "<em>cease and desist</em>" their online selling activities. <br /> <br />If only a handful of items are being sold through "<em>retail arbitrage</em>," you may just want to ignore it. After all, it's probably how you yourself got started.<br /> <br />
Staff
2019-11-19T17:17:00Z
Do I Really Need a Business Plan?
Staff
http://www.DrLaura.com/b/Do-I-Really-Need-a-Business-Plan/189326939290153344.html
2019-10-18T16:17:00Z
2019-10-18T16:17:00Z
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<strong> </strong><strong><em> </em><em><br /></em></strong>
</ul>
<div><strong><em>By Cliff Ennico</em></strong></div>
<div><a href="http://www.succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com</a><strong> </strong><em> </em></div>
<div><br /><br />"<em>I am new to this country, and am taking a class in the evenings on how to start my own business. I understand that you need a tax ID number and that it's a good idea to form a corporation or limited liability company (LLC) to protect myself from lawsuits. At what point in the process, though, should I prepare the business plan? Do I have to file that document anywhere?</em>"<br /><br /></div>
<div>Go to the "<em>small business</em>" section of any major bookstore and you will see dozens, if not hundreds, of different books on how to prepare a business plan. You can't blame anyone - not just recent immigrants, either -- for thinking that a business plan is a legal requirement in this country, and that you shouldn't even consider starting a business without first preparing a 100-page treatise with numbered sections, index tabs, and the whole she-bang.<br /><br /></div>
<div>Of course, business plans are not a legal requirement, and they don't have to be filed with any government agency. There are two kinds - an "<em>operating</em>" business plan and a "<em>financial</em>" business plan. The operating business plan is a very informal document - it doesn't even have to be in writing, although I suggest that writing it down is good discipline and forces you to think about things you otherwise would overlook. Basically, the operating business plan has four parts:<br /><br /></div>
<ul>
<li>A Marketing Plan, that answers the questions: who are my customers? What fears, passions and other emotions motivate them to buy anything? How do my products or services key in to those fears, passions and other emotions (in other words, to use an MBA phrase, "<em>what is the value proposition?</em>"). How do I get the message across to my customers? This part always comes first, because without customers, you don't have a business. You have a hobby</li>
<br />
<li>A Competitive Strategy Plan, that answers the questions: Who (or what) are my competitors? How are my products or services better, faster, cheaper, more convenient than theirs - in other words, where am I stronger than they are? If you can't beat the competition, your only choice is to join them, or quit.</li>
</ul>
<ul>
<li>A Financial Plan, that answers the questions: What are the costs of running this business, and how many sales at what prices must I make in order to cover those costs and make a profit? What must I need to take out of the business in order to survive in the style to which I have become accustomed, and how long will it take me to get there? Will I have to borrow money to grow this business, and if so, when and how much?</li>
<br />
<li>Finally, a Risk Assessment Plan, that answers the questions: What are the risks of this business? Can I cover them with insurance? Will I need to form a legal entity to protect myself against my creditors? What legal documents will I need to use in this business to make sure people don't try to cheat me?</li>
</ul>
<ul>
<br />
</ul>
<div>The time to prepare an "<em>operating</em>" business plan is after you get the idea for the business, and well before you launch the business. You should keep it to yourself (and your business partners, if you have any), because the stuff in here can do you real damage if it gets into the wrong hands.</div>
<div><br />Unlike the "<em>operating</em>" business plan, the "<em>financial</em>" business plan is a formal document that must be in writing. This is the business plan you will show to prospective investors, banks and other people when you are out looking for money to grow your business. This is the business plan all of the "business plan" books in your local bookstore are about, and make no mistake - it has to look a certain way, or else these people will not take you or your business seriously.<br /><br /></div>
<div>Here's a tip: if you are thinking about taking out a business loan from a local bank and need to write a "<em>financial</em>" business plan, don't buy a book and try to figure it out yourself. Instead, visit your local chapter of SCORE (check out www.score.org to find the chapter nearest you). This is a national volunteer organization of retired business people who provide free advice to local small businesses. <br /><br /></div>
<div>In my experience, just about every SCORE chapter has a few retired bankers, who will be only too happy to help you prepare the "<em>financial</em>" business plan your local banks will want to see, walking you step by step through the process, and may even introduce you to some of their old buddies at the bank who specialize in business loans. Did I mention this is free?<br /><br /></div>
<div>One final point about business plans: writing them can be an awful lot of fun, but you have to be prepared to cast them aside if a really good opportunity comes along that wasn't "<em>in the plan</em>". The problem with business plans is that they narrow your field of vision. Sometimes the best business opportunities are not straight ahead in your path, but appear out the corner of your eye in a vague and hazy way at an oblique angle to what you are currently doing. Sticking too closely to a business plan can be just as bad as not having a business plan at all.</div>
<div> <br /><br /></div>
<ul>
</ul>
<div><strong><em>Cliff Ennico</em></strong><span> (<a href="mailto:cennico@legalcareer.com" target="_blank">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series </span><em>'Money Hunt'</em><span>. His latest books are </span><em>'<a href="https://www.amazon.com/s?k=small+business+survival+guide&hvadid=77996660371165&hvbmt=bp&hvdev=c&hvqmt=p&tag=mh0b-20&ref=pd_sl_4gi8aoferx_p" target="_blank">Small Business Survival Guide</a>' </em><span>(Adams Media, $12.95) and</span><em> '<a href="https://www.amazon.com/eBay-Sellers-Legal-Answer-Book/dp/081447425X" target="_blank">The eBay Seller's Tax and Legal Answer Book</a>'</em><span> (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. COPYRIGHT 2019 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. </span><span>Permission granted for use on DrLaura.com.<strong> </strong><em> </em> </span><strong> </strong><em> </em></div>
Staff
2019-10-18T16:17:00Z
You Know You Have an Online Retail Business When . . .
Staff
http://www.DrLaura.com/b/You-Know-You-Have-an-Online-Retail-Business-When-.-.-./-994336280543142034.html
2019-10-10T08:20:00Z
2019-10-10T08:20:00Z
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<ul>
</ul>
<ul>
</ul>
<div><strong> </strong><strong><em> </em><em><br />By Cliff Ennico</em></strong></div>
<div><a href="http://www.succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com</a><strong> </strong><em> </em></div>
<div><br /><br />It's the most commonly asked question eBay and Amazon sellers ask me: "<em>I've been selling on eBay/Amazon/Etsy/wherever for a while, but I don't know if I should treat it as a hobby or a business.</em>" Sooner or later, every online seller has to make the fateful decision: should I do this only occasionally for the fun of it, or should I consider making a part-time or full-time living doing this? Sometimes the decision is made for you, as when so many people are asking you to sell their stuff on eBay that before you know it you've made $50,000 or more in profits and you almost have to treat it as a business.</div>
<div>Here are 20 signs, David Letterman-style, that your online selling activities are getting a wee bit beyond the "<em>hobby</em>" stage.</div>
<ul>
<li> 20. You've run out of things in your attic and basement to sell online, and your friends, neighbors, parents and children are complaining stuff goes missing each time you visit them.</li>
</ul>
<ul>
<li> 19. After putting your garbage out by the curb on pickup day, you drive around the neighborhood to see if anybody is throwing away anything interesting.</li>
</ul>
<ul>
<li> 18. You've taken out classified ads in the local newspapers and have placed one-page "<em>flyers</em>" in all of your neighbors' mailboxes offering to help other people clean out their attics and basements - for a fee, of course.</li>
</ul>
<ul>
<li> 17. You begin haunting local funeral parlors, like Paul Newman in "<em><a href="https://www.imdb.com/title/tt0084855/" target="_blank">The Verdict</a></em>", offering your online selling services to bereaved relatives who just can't bear the thought of cleaning out Mom's house.</li>
</ul>
<ul>
<li> 16. You're personally acquainted with every estate, divorce and bankruptcy attorney in your community.</li>
</ul>
<ul>
<li> 15. A hedge fund wants to invest in what you're doing.</li>
</ul>
<ul>
<li> 14. You consider building out the shed in your backyard, or adding a third story to your center-hall colonial, so you'll have more room to store your inventory.</li>
</ul>
<ul>
<li> 13. You keep your Yorkshire Terrier chained to your inventory at night so you can deduct him as a "<em>guard dog</em>" (hey, they're mean little guys, you may actually get away with it).</li>
</ul>
<ul>
<li> 12. The first things you read in the newspaper every morning are the liquidation and creditors' notices in the "<em>legal</em>" section of the classified ads page.</li>
</ul>
<ul>
<li> 11. You carry rolls of hundred dollar bills to garage sales, arriving just as the homeowners are putting out their stuff, and offer to buy everything they have, sight unseen.</li>
</ul>
<ul>
<li> 10. You own the complete works of Marsha Collier, Lynn Dralle, Skip McGrath, Danna Crawford and other online selling gurus (if you don't know who these folks are, you probably aren't quite "<em>there</em>" yet).</li>
</ul>
<ul>
<li> 9. You're on a first name basis with every employee of your town dump, the head of the local trucker's union, and every freight liquidator, customs broker and factory outlet within a 50-mile radius.</li>
</ul>
<ul>
<li> 8. You arrive at 6 a.m. for your local library's annual book sale with 36 empty liquor boxes and three undocumented "<em>day laborers</em>" to help you pack up your truck.</li>
</ul>
<ul>
<li> 7. You have so many student interns helping you create your listings the local community college has named a faculty chair after you.</li>
</ul>
<ul>
<li> 6. You know exactly where you can find motor vehicles that were "<em>formerly owned by drug dealers</em>".</li>
</ul>
<ul>
<li> 5. You know which brands of perfume, housewares and other consumer goods are being discontinued by their manufacturers within the next six months - and which distributors are likely to have overstocks of these items.</li>
</ul>
<ul>
<li> 4. The hosts of the <a href="https://community.ebay.com/t5/eBay-for-Business-Podcast/gp-p/g-232" target="_blank">eBay for Business podcast</a> have your home phone number on speed-dial.</li>
</ul>
<ul>
<li> 3. The local kids can't play basketball in the street anymore because they're too busy dodging UPS trucks going to and from your home office.</li>
</ul>
<ul>
<li> 2. You're setting up a charitable foundation to teach convicts in your state prison system how to use eBay Selling Manager™, Auctiva™, Sellbrite™ and other online selling software.</li>
</ul>
<div> And last but not least . . .</div>
<ul>
<li> 1. You make at least one penny in profit each year from your online selling activities.</li>
</ul>
<div>When you start selling things online, you have to take yourself seriously as a business. eBay, Amazon, Etsy and other online retail platforms will expect you to operate in a professional, businesslike manner, and to treat your buyers with respect. If even a couple of buyers post "<em>negative feedback</em>" saying they didn't have a good experience with you, you may well be kicked off the site.</div>
<div><strong><em><br /><br />Here are a couple of tips for getting started:</em></strong></div>
<ul>
<li>Have your accountant obtain a federal tax identification number (EIN) for your business.</li>
<br />
<li>Register for state sales, use and other business taxes - your accountant can also do this for you, probably for free.</li>
<br />
<li>If you plan to have lots of shipments each week, set up a "<em>private mailbox</em>" arrangement at your local <a href="http://www.theupsstore.com" target="_blank">UPS Store</a> and use that instead of your home as your business address. </li>
<br />
<li>Consider forming a corporation or limited liability company (LLC) for your business - a local attorney can do this for you for a fee in the $500 to $1,000 range.</li>
<br />
<li>Set up a <a href="ttps://www.accountingtools.com/articles/what-is-the-bad-debt-reserve.html" target="_blank">bad debt reserve</a> so you can take a deduction on your taxes when buyers fail to pay you on time, return stuff other than the stuff you sent to them, or threaten to post negative feedback online if you don't let them keep your stuff AND their money. <br /><br /></li>
</ul>
<div><strong><em>Cliff Ennico</em></strong><span> (<a href="mailto:cennico@legalcareer.com" target="_blank">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series </span><em>'Money Hunt'</em><span>. His latest books are </span><em>'<a href="https://www.amazon.com/s?k=small+business+survival+guide&hvadid=77996660371165&hvbmt=bp&hvdev=c&hvqmt=p&tag=mh0b-20&ref=pd_sl_4gi8aoferx_p" target="_blank">Small Business Survival Guide</a>' </em><span>(Adams Media, $12.95) and</span><em> '<a href="https://www.amazon.com/eBay-Sellers-Legal-Answer-Book/dp/081447425X" target="_blank">The eBay Seller's Tax and Legal Answer Book</a>'</em><span> (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. COPYRIGHT 2019 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. </span><span>Permission granted for use on DrLaura.com.<strong> </strong><em> </em> </span><strong> </strong><em></em></div>
Staff
2019-10-10T08:20:00Z
Can I Sell This Stuff On EBay?
Staff
http://www.DrLaura.com/b/Can-I-Sell-This-Stuff-On-EBay/-519491197391801263.html
2019-09-24T17:59:00Z
2019-09-24T17:59:00Z
<ul>
</ul>
<div><em><strong>By Cliff Ennico</strong></em></div>
<div><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /><br /><br /></a></div>
<div>Q: "<em>What are the rules when it comes to selling trademarked or branded items, such as Gucci handbags or Tiffany jewelry, on eBay?</em>"<br /><br /></div>
<div>A: eBay's rules about trademarked items are simple to state, but difficult as the Dickens to apply in practice. Even experienced eBay sellers make mistakes in this area. The rules are basically these:</div>
<ul>
<li>You cannot sell knockoff or counterfeit items on eBay - never, ever, ever, world without end, Amen.</li>
<br />
<li>It's up to you to determine if an item is genuine or not.</li>
<br />
<li>eBay won't help you determine if an item is genuine or not.</li>
<br />
<li>If the manufacturer or owner of the brand or trademark wants your listing terminated because they think you are not selling genuine merchandise, even if you are, eBay will shut down your listing and, for repeated violations, kick you off of eBay. </li>
<br />
<li>You cannot hold yourself out as an authorized reseller of a manufacturer unless you truly are one.</li>
<br />
<li>If you have questions about whether an item is genuine or not, eBay wants you to talk directly to the "<em>rights owner</em>" or manufacturer about it, and has set up a program called VeRo (for "<em>Verified Rights Owner</em>") to help you do just that.</li>
</ul>
<p>Details of eBay's VeRo program can be found <a href="http://pages.ebay.com/help/tp/programs-vero-ov.html" target="_blank">here</a>. Many leading manufacturers participate in eBay's VeRo program, but offer little guidance to eBay sellers in determining whether an item is genuine or not. When you click on a manufacturer's "<em>About Me</em>" page in the VeRo section of eBay's website, many just repeat eBay's rules about not selling counterfeit or knockoff items with their brand names and trademarks on them, and warn you of the perils of doing so.</p>
<p>eBay does require participants in the VeRo program to give you an e-mail address where you can ask questions about their merchandise, but don't hold your breath waiting for your e-mail messages to be answered. There are some very good business reasons why manufacturers and brand owners won't go out of their way to help you sell their merchandise on eBay, among them the following:</p>
<ul>
<li>Many luxury-goods makers view eBay as a liquidation or "<em>flea market</em>" venue, and do not want their brands sold there under any circumstances for fear of tainting their brands' marketing image.</li>
<br />
<li>Many manufacturers want to protect their distribution channels from low-cost competition from eBay sellers. </li>
<br />
<li>Many manufacturers, especially of luxury goods, do not want to see an aftermarket in used (but genuine) merchandise competing with their new high-margin offerings.</li>
<br />
<li>Many manufacturers want to avoid lawsuits and negative publicity from buyers who are angry with their eBay purchases (because of irresponsible or inexperienced sellers) and claim that the manufacturers have "<em>aided and abetted</em>" the eBay seller's actions.by encouraging sales on eBay.</li>
</ul>
<p>There are also some very good business reasons why eBay won't do more to help you sell branded merchandise on the site:</p>
<ul>
<li>eBay views itself as a "<em>marketplace</em>" or "<em>platform</em>" on which transactions take place, and is legitimately concerned about jeopardizing its "neutral" status by taking sides between sellers and trademark owners.</li>
<br />
<li>eBay is petrified (and rightly so) by the prospect of being sued by powerful Fortune 500 corporations (such as the parent corporations of Gucci's and Tiffany's) with deep pockets and big-name law firms behind them, and will bend over backwards to avoid offending these companies.</li>
</ul>
<p>To begin your education on eBay's brand-name merchandise policies, begin with eBay's "<em><a href="http://pages.ebay.com/help/tp/compliant-listings.html" target="_blank">Guidelines for Creating Legally Compliant Listings</a></em>". Then take eBay's "<em>tutorial on Intellectual Property Policies and VeRO</em>" (there's a link to that on the above page, but you will have to sign in using your eBay User ID and password to take the tutorial). Finally, review eBay's VeRO page and read the "<em>frequently asked questions</em>" that are posted <a href="http://pages.ebay.com/help/policies/questions/vero-ended-item.html" target="_blank">here</a>. You now know as much as anyone does about selling brand-name merchandise on eBay.</p>
<p>The bottom line is that when you sell brand-name merchandise on eBay without the manufacturer's permission or authorization, you are taking a risk, and will have to expect that occasionally eBay will terminate one of your listings even if you are convinced that the item is genuine. If you bought the item yourself, post a photo of your purchase receipt on your eBay listing (blacking out any personal information, of course). And remember . . . if a deal seems "<em>too good to be true</em>", it probably is. That "<em>genuine Gucci handbag</em>" you bought from a store in a back alley of Rome for 50 Euros (about $69) is almost certainly not genuine - don't even think about selling it on eBay!</p>
<p> </p>
<br /><strong><em>Cliff Ennico</em></strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of "<em><a href="https://www.amazon.com/Crowdfunding-Handbook-Business-Start-Up-Funding/dp/081443360X" target="_blank">The Crowdfunding Handbook</a></em>," "<em><a href="https://www.amazon.com/Small-Business-Survival-Guide-Protecting/dp/1593374062/ref=sr_1_3?keywords=Small+Business+Survival+Guide&qid=1558032231&s=books&sr=1-3" target="_blank">Small Business Survival Guide</a></em>," "<em><a href="https://www.amazon.com/eBay-Sellers-Legal-Answer-Book/dp/081447425X/ref=sr_1_fkmrnull_1?keywords=The+eBay+Seller%27s+Tax+and+Legal+Answer+Book&qid=1558032260&s=books&sr=1-1-fkmrnull" target="_blank">The eBay Seller's Tax and Legal Answer Book</a></em>" and 15 other books. Permission granted for use on DrLaura.com.<br /><br />
Staff
2019-09-24T17:59:00Z
Four Secrets To Getting Deals Done
Staff
http://www.DrLaura.com/b/Four-Secrets-To-Getting-Deals-Done/182262000145434134.html
2019-08-12T17:59:00Z
2019-08-12T17:59:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><em> <br /></em></p>
<blockquote><em>"My partner and I own a service business we've been trying to sell for some time. We finally found a buyer, but the process just seems to be taking forever. The buyer's attorney seems to be taking a long time to review our attorney's draft documents, and our attorney doesn't seem to want to push things as fast as we want him to. We've explained to him that 'time kills deals,' and we're really worried that the deal will fall apart if pressure isn't constantly being applied to get things done. Do you agree, or are we missing something here?"</em></blockquote>
<br />You are right, of course, about time killing deals. But pushing things faster than they're able to go can kill deals just as easily. <br /><br />I assume you are selling the assets of your service business, as that's how most of these transactions are structured. An asset sale transaction has a lot of "<em>moving parts</em>" that all have to synchronize before a closing can take place. For example:
<ul>
<li>Your landlord will need to consent to the buyer's assuming your existing lease of your business premises, and they probably will want to see financial statements from the buyer and other documentation so they can comfort themselves his credit risk is the same or better than yours. </li>
</ul>
<ul>
<li>You will have to get consents from any leasing companies from which you lease equipment. </li>
</ul>
<ul>
<li>If your business is a franchise, you will have to get the franchisor's consent. </li>
</ul>
<ul>
<li>Your accountant and the buyer's accountant will have to agree on allocating portions of the purchase price to specific asset categories for tax purposes. </li>
</ul>
<br /> These things can't be done in a day or two. In my experience, it generally takes four to six weeks to close a sale of business assets from the date you and the buyer initially agree on the purchase price. Pushing any faster than that can be very counterproductive. <br /><br />If there is a real urgency in closing your deal by a specific date, by all means you should communicate this to your attorney so that he can communicate it to the buyer's attorney. That may help move things along. If there is no such urgency, however, I would advise you to "<em>cool your jets</em>" and let your attorney and the buyer's attorney work through the details at a reasonable pace. <br /><br />Here are four rules I live by when it comes to getting deals done. <br /><br /><strong><span style="text-decoration: underline;">Rule # 1: Deals always go more smoothly when the attorneys work together as a "<em>team</em>".</span> </strong> <br />Contrary to popular opinion, this is one arena in which you and your attorneys should not be aggressive or adversarial. It's the buyer's money, after all, and he should have sufficient time to understand what he is signing, and the obligations he is assuming. By pushing him too hard to close quickly, you will get him (and his attorney) very nervous. The buyer will begin to suspect there are skeletons in this business' closet, and will conduct his due diligence with an electron microscope instead of a magnifying glass. The buyer's attorney will start worrying about his malpractice liability, and will be sure to get his back up, raising unnecessary issues and "<em>nitpicking</em>" the documents in an effort to slow things down and protect his client. <br /> <br /><br /><span style="text-decoration: underline;"><strong>Rule # 2: If the other side asks for something reasonable that doesn't hurt you in any way, don't waste time arguing about it. Say "<em>yes</em>," and move on.</strong></span> <br />You want to get closure as soon as possible so that you and the buyer can focus on getting all the closing paperwork pulled together. If you are still negotiating the business deal at the closing table, something has gone seriously wrong with the transaction. <br /><br /><br /><span style="text-decoration: underline;"><strong>Rule # 3: If the other side asks for something unreasonable or that does hurt you, then ask why they need it. </strong></span> <br />Don't say "<em>no</em>" automatically when the other side asks for something you can't say "<em>yes</em>" to. Instead, ask "<em>why</em>". A lot of times the other side really doesn't care too strongly about the point, and will drop it. Even if they don't, once you understand fully the other side's concern, you will find there's usually a compromise position that will satisfy that concern without hurting you. <br /><br />But don't be a wuss. If the other side's position doesn't make sense, say so. <br /> <br /><br /><span style="text-decoration: underline;"><strong>Rule # 4: Never try to close a deal in August. </strong></span> <br />A lot of people try to get deals done in August because they figure everyone will have more time to focus on the details, but in my experience that never happens. No sooner has one player returned from vacation than another one leaves on vacation. If you can't get the deal closed by the end of July, schedule the closing for sometime after Labor Day and head for the beach. Everyone will appreciate that you are not trying to disrupt their precious time off, and that goodwill will pay dividends when negotiations resume.
<p> </p>
<br /><br /><strong><em>Cliff Ennico</em></strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of "<em><a href="https://www.amazon.com/Crowdfunding-Handbook-Business-Start-Up-Funding/dp/081443360X" target="_blank">The Crowdfunding Handbook</a></em>," "<em><a href="https://www.amazon.com/Small-Business-Survival-Guide-Protecting/dp/1593374062/ref=sr_1_3?keywords=Small+Business+Survival+Guide&qid=1558032231&s=books&sr=1-3" target="_blank">Small Business Survival Guide</a></em>," "<em><a href="https://www.amazon.com/eBay-Sellers-Legal-Answer-Book/dp/081447425X/ref=sr_1_fkmrnull_1?keywords=The+eBay+Seller%27s+Tax+and+Legal+Answer+Book&qid=1558032260&s=books&sr=1-1-fkmrnull" target="_blank">The eBay Seller's Tax and Legal Answer Book</a></em>" and 15 other books. Permission granted for use on DrLaura.com.<br /><br />
Staff
2019-08-12T17:59:00Z
Starting A Business On Ebay And Amazon
Staff
http://www.DrLaura.com/b/Starting-A-Business-On-Ebay-And-Amazon/484231178549170792.html
2019-07-18T18:46:00Z
2019-07-18T18:46:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><em> <br /></em><br />As my readers know, I travel the country talking to people who make a living selling stuff on eBay, Amazon, Etsy and the other online e-commerce platforms. <br /><br />As a lawyer and business consultant, I'm not always able to answer the more technical questions people have about starting and maintaining their online accounts on eBay and Amazon. But, as we used to say in the Bronx when I was a kid growing up, "<em>I know a guy, who knows a guy, who knows a guy...</em>" <br /><br />Here are some of the best guys (and gals) I know who can help you get your online retail business off to a solid start, and who will be there for you when the going gets rough. <br /><br /><br /><strong>How Do I Get Started on eBay?</strong> <br /><br />The eBay website offers an excellent online tutorial for "newbie" eBay sellers that walks you step by step through the process of setting up an account and listing items. You can find it by clicking <a href="https://www.ebay.com/help/selling/selling/start-selling-ebay?id=4081" target="_blank">here</a>. <br /><br />eBay also offers a weekly podcast for sellers, hosted by Jim Griffith, one of its senior executives, which you can find it by clicking <a href="https://community.ebay.com/t5/eBay-Podcast/ct-p/eBay_podcast" target="_blank">here</a>. Keep in mind that the show, being hosted by eBay, will offer only the "<em>official</em>" position on topics of interest to the seller community, and may be too basic for more advanced sellers. <br /><br />For help with specific topics, new eBay sellers should bookmark the "<em><a href="https://pages.ebay.com/seller-center/index.html?utm_source=gf&utm_medium=onsite" target="_blank">Seller Central</a></em>" page on eBay, for an index of numerous articles and FAQ pages, arranged in alphabetical order. Another very useful page on the eBay website worth bookmarking is the "<em><a href="https://www.ebay.com/help/policies/prohibited-restricted-items/prohibited-restricted-items?id=4207" target="_blank">Restricted Items</a></em>" page, again in alphabetical order, items you cannot legally sell online. <br /><br /> If you are not a "<em>do it yourself</em>" sort of person and want human help in setting up your accounts, your best bet is to join a "<em>meetup group</em>" of eBay sellers. There are lots of these throughout the United States and Canada, offering monthly meetings and personalized "<em>one on one</em>" help and support for both newbie and experienced sellers. To find the group nearest you, click <a href="https://www.meetup.com/topics/ebaysell" target="_blank">here</a>, or search online for "<em>eBay seller meetup group [your state]</em>". <br /><br />Finally, if you need one-on-one help from a professional eBay seller, search online for "<em>eBay consultant [your state]</em>". You will pay by the hour, but the job will be done right. Some of my favorites are <a href="https://www.linkedin.com/in/stephanieinge" target="_blank">Stephanie Inge</a>, <a href="https://ilovetobeselling.com" target="_blank">Kathy Terrill</a>, <a href="mailto:deenaq@gmail.com" target="_blank">Deena Quilty</a>, and <a href="https://powersellingmom.com/ebay-consignment-selling" target="_blank">Danna Crawford</a>. <br /><br /><br /><strong>How Do I Get Started on Amazon? </strong><br /><br />Selling on Amazon is a much different experience than selling on eBay. On the plus side, Amazon is a MUCH bigger marketplace than eBay, with more automated service and warehouses throughout the country, and offers small "<em>Mom and Pop</em>" sellers a "<em>Fulfillment By Amazon</em>" (<a href="https://services.amazon.com/fulfillment-by-amazon/benefits.htm" target="_blank">FBA</a>) service where they handle shipping/fulfillment of your merchandise from their warehouses. On the negative side, Amazon is more controlling of its sellers' activities, charges higher fees, does not offer an auction format (so less desirable for antiques, collectibles and other "<em>one of a kind</em>" items), may expose you to sales and other taxes in states other than where you're located, makes it harder to develop a brand identity, and (this one's a biggie folks) THEY COMPETE WITH YOU by offering their own merchandise, often right next to your listings. <br /><br />Like eBay, Amazon offers an online tutorial for newbie sellers, which you can find <a href="https://services.amazon.com/selling/getting-started.html" target="_blank">here</a>. As part of the startup process, you will need to decide between Amazon's "<em>Fulfillment by Amazon</em>" (FBA) and "<em>Fulfillment by Merchant</em>" (FBM) programs. For help in deciding which is right for your business, check out <a href="https://feedvisor.com/university/fbm-or-fba" target="_blank">this page</a>. <br /><br />Next, sign up for Skip McGrath's weekly Amazon sellers' blog by clicking <a href="https://www.skipmcgrath.com/blog1" target="_blank">here</a>. Skip is a top-ranked Amazon seller who has been offering advice and resources for Amazon sellers since the very beginning on topics ranging from product sourcing in China to new software solutions to navigating Amazon's often Byzantine seller support team. <br /><br />If you're looking for more personalized help in getting started on Amazon, go to <a href="https://www.meetup.com/topics/amazon-seller" target="_blank">https://www.meetup.com/topics/amazon-seller</a> or <a href="https://amzsummits.com/amazon-seller-meetups" target="_blank">https://amzsummits.com/amazon-seller-meetups</a>, or search for "<em>amazon seller consultant [your state]</em>". Some of my favorites are <a href="http://www.sellercoaching.com" target="_blank">Bob Willey</a>, <a href="http://www.solutions4ecommerce.com" target="_blank">Karen Locker</a> , and <a href="http://www.amazon.com/Mr.-Chris-Green/e/B005PPUPX2" target="_blank">Chris Green</a>. <br /><br /><br /><strong>What If I Get Into Trouble? </strong><br /><br />Ebay and Amazon each have their own rules and regulations for sellers, and it's easy to make mistakes. Sooner or later, your account is likely to be "<em>suspended</em>" because someone (usually a competitor) thinks you are selling counterfeit merchandise or are selling trademarked merchandise without authorization from the manufacturer. </p>
<ul>
<li>For a listing of eBay's rules, <a href="https://www.ebay.com/help/policies/member-behaviour-policies/user-agreement?id=4259" target="_blank">click here</a> or go to <a href="https://www.ebay.com/help/policies/member-behaviour-policies/user-agreement?id=4259" target="_blank">https://www.ebay.com/help/policies/member-behaviour-policies/user-agreement?id=4259</a>. </li>
</ul>
<ul>
<li>For Amazon's rules <a href="https://sellercentral.amazon.com/gp/help/external/G521?language=en_US" target="_blank">click here</a> or go to <a href="https://sellercentral.amazon.com/gp/help/external/G521?language=en_US" target="_blank">https://sellercentral.amazon.com/gp/help/external/G521?language=en_US</a>. </li>
</ul>
<p><br /> If your account is suspended or shut down, it's best to get expert advice before you deal with eBay's or Amazon's customer service personnel. A "<em>cottage industry</em>" of people has sprouted up in recent years offering to help suspended eBay and Amazon sellers get back on track: my favorites are <a href="http://www.egrowthpartners.com" target="_blank">Cynthia Stine</a> and <a href="http://www.amazonsellerslawyer.com" target="_blank">attorney C.J. Rosenbaum</a>. <br /><br /><br /><strong>How Do I Deal with Sales Taxes When I Sell Online?</strong> <br /><br />First of all, as a newbie online seller, you are legally required to register for sales tax in your home state. Search online for "<em>[your state] Department of Revenue</em>" to find the website for your state tax authority. Many local accountants will help you register for sales taxes free of charge if you ask them nicely for help (and offer to help them clean out their attics). <br /><br />A recent U.S. Supreme Court decision may require you to pay sales taxes in other states if you have a significant volume of sales there (generally $50,000 to $100,000). For an up-to-date listing of each state's rules, <a href="https://www.avalara.com/us/en/blog/category/sales-and-use-tax.html" target="_blank">click here</a>. If you find you need to register for sales taxes in multiple states, <a href="http://www.taxjar.com" target="_blank">Taxjar</a> has a number of resources that will help you keep track of returns and payments. <br /><br />Keep in mind that if you sell internationally, you may be subject to laws in other countries requiring you to protect data you receive about your customers there, such as the European Union's General Data Protection Regulation (GDPR) (see <a href="https://gdpr-info.eu" target="_blank">https://gdpr-info.eu</a>). Also, things you can sell legally in the United States may not be legal to sell in other countries with different laws and cultural traditions. As with any business, knowing a good lawyer, and keeping him or her informed as your business grows, is the best way to stay out of legal trouble. <br /><br />For general advice on your legal and tax responsibilities as an online seller, check out my popular book "<em><a href="https://www.amazon.com/eBay-Sellers-Legal-Answer-Book/dp/081447425X" target="_blank">The eBay Seller's Tax and Legal Handbook</a></em>" (available anywhere, even on Amazon) or any of my YouTube videos on the subject ( <a href="http://www.youtube.com" target="_blank">www.youtube.com</a>, search for "<em>Cliff Ennico</em>"). <br /><br />For more information on how to get started on eBay, Amazon and other online platforms, take an hour out of your life and listen to my free on-demand webinar "<em><a href="https://www.youtube.com/watch?v=8X_Auk9jDjc&feature=youtu.be" target="_blank">Using Mega-Retail Platforms</a></em>". </p>
<br /><br /><strong><em>Cliff Ennico</em></strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of "<em><a href="https://www.amazon.com/Crowdfunding-Handbook-Business-Start-Up-Funding/dp/081443360X" target="_blank">The Crowdfunding Handbook</a></em>," "<em><a href="https://www.amazon.com/Small-Business-Survival-Guide-Protecting/dp/1593374062/ref=sr_1_3?keywords=Small+Business+Survival+Guide&qid=1558032231&s=books&sr=1-3" target="_blank">Small Business Survival Guide</a></em>," "<em><a href="https://www.amazon.com/eBay-Sellers-Legal-Answer-Book/dp/081447425X/ref=sr_1_fkmrnull_1?keywords=The+eBay+Seller%27s+Tax+and+Legal+Answer+Book&qid=1558032260&s=books&sr=1-1-fkmrnull" target="_blank">The eBay Seller's Tax and Legal Answer Book</a></em>" and 15 other books. Permission granted for use on DrLaura.com.<br /><br />
Staff
2019-07-18T18:46:00Z
Buying a Business Without a Lawyer
Staff
http://www.DrLaura.com/b/Buying-a-Business-Without-a-Lawyer/328030494027112090.html
2019-06-28T15:03:00Z
2019-06-28T15:03:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><em> </em></p>
<blockquote>"<em>Two weeks ago I signed a contract to buy a business. I didn't use a lawyer because the contract seemed fair and I felt I understood what it said. I put up a $25,000 deposit to buy this business, and the closing is in two weeks. </em><br /><br /><em>The seller's attorney has been calling me every day asking me questions about the documents that I am responsible for delivering to the closing. When I attempt to discuss these with him, he tells me he can't talk to me directly but only to my attorney. I told him I don't have an attorney. He says I need to have one. </em><br /><br /><em>The big problem I'm facing is that I'm having trouble getting a new lease from the landlord where this business is located. The landlord and I have agreed on terms but he can't get the lease documents to me for another couple of weeks. Also, my bank is taking forever to process the refinancing on my house that I will need to do in order to pay the purchase price. I've asked the seller to extend the closing so that I can get the lease and the bank loan, but the seller is refusing to do so. </em><br /><br /><em>I have tried calling a couple of local lawyers to see if they will help me with the closing, but they are not returning my phone calls. </em><br /><br /><em>What is going on here? I am starting to feel like I'm being ripped off - that the seller is going to take my $25,000 because I won't have a lease at the closing. I shouldn't be forced to retain an attorney if I don't want to have one." </em> </blockquote>
<br />By the tone of this e-mail message I am sure this reader is an extremely intelligent person. But he or she has done an incredibly dumb thing. <br /><br />When you sign a contract of sale to buy a business, you are legally obligated to close by the date set out in the contract. If you are not in a position to close on that date, and the seller is not a good person who will grant you an extension of time out of the goodness of his heart, the deal is forfeit and the seller can take your upfront deposit. <br /><br />If getting a new lease was a condition that had to be met before closing, that should have been clearly spelled out in the contract, and language put into the contract providing for an automatic extension of the closing date until you got the lease. A good attorney would have known to put that language into the contract. <br /><br /> Here are some other things that should have been in the contract, but probably aren't:<br /><br />
<ul>
<li>A clause allowing you to form a corporation or limited liability company (LLC) to act as the purchaser of the business.</li>
</ul>
<ul>
<li>A closing date that is at least 60 to 90 days after the contract date (30 days - two weeks plus two weeks -- is not nearly enough time).</li>
</ul>
<ul>
<li>A "<em>financing contingency</em>" allowing you to get out of the deal and get your deposit back if a bank refuses to lend you the money necessary to pay the purchase price.</li>
</ul>
<ul>
<li>A clause allowing you to get out of the deal and get your deposit back if you can't get any licenses or permits (such as a zoning clearance) to operate the business at this location.</li>
</ul>
<ul>
<li>A clause requiring the seller to hold some of the purchase price in escrow until you can confirm that the seller doesn't owe any sales or other taxes to the state or local government.</li>
</ul>
<ul>
<li>A clause allowing you to "<em>do diligence</em>" on the business and get out of the deal if you or your advisors see anything about this business that they don't like. </li>
</ul>
<br />A good lawyer could have negotiated these for you, but it's now too late: you are stuck with the contract you signed. <br /><br />The seller's attorney is technically right not to talk to you: he is representing the seller, after all, and cannot make any concessions to help you out unless his client (the seller) agrees to them. Also, there is a very strict rule of lawyer's ethics saying that an attorney cannot even speak to someone on the other side of a transaction unless the other person's lawyer participates in the conversation. <br /><br />As for the attorneys who are not returning your telephone calls, I cannot really blame them. Few attorneys would want to get involved in a situation like this because you are giving them only a few days to get "<em>up to speed</em>" on the transaction, and they are afraid you will sue them for malpractice if they are unable to get the transaction closed on an unreasonable timetable. <br /><br />You have learned a $25,000 lesson. Never, EVER buy a business without a good lawyer and a good accountant, and be sure to give them enough time to do their jobs. <br /><br /><br /><br /><strong><em>Cliff Ennico</em></strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of "<em><a href="https://www.amazon.com/Crowdfunding-Handbook-Business-Start-Up-Funding/dp/081443360X" target="_blank">The Crowdfunding Handbook</a></em>," "<em><a href="https://www.amazon.com/Small-Business-Survival-Guide-Protecting/dp/1593374062/ref=sr_1_3?keywords=Small+Business+Survival+Guide&qid=1558032231&s=books&sr=1-3" target="_blank">Small Business Survival Guide</a></em>," "<em><a href="https://www.amazon.com/eBay-Sellers-Legal-Answer-Book/dp/081447425X/ref=sr_1_fkmrnull_1?keywords=The+eBay+Seller%27s+Tax+and+Legal+Answer+Book&qid=1558032260&s=books&sr=1-1-fkmrnull" target="_blank">The eBay Seller's Tax and Legal Answer Book</a></em>" and 15 other books. Permission granted for use on DrLaura.com.<br /><br />
Staff
2019-06-28T15:03:00Z
Online Reviews - Part 1
Staff
http://www.DrLaura.com/b/Online-Reviews---Part-1/-25521301834174890.html
2019-06-11T17:45:00Z
2019-06-11T17:45:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><em> </em></p>
"<em>I want to put a hyperlink on my website to an article somebody else wrote on another website, so that readers could read the article and then respond whether negative or positive on my website what they thought of the article. Is this legal?</em>" <br /><br />The short and easy answer is that it's probably legal. The tougher question is: should you do it? <br /><br />A "<em>link</em>" or "<em>hyperlink</em>" is a connection between two sites. If you have ever read a text online and noticed that certain words were highlighted in a different color, those words are a "<em>hyperlink</em>". If you click on those words, you will be automatically transferred to another website where those words are explained, expanded on, or whatever. <br /><br />There are two possible objectives you could have in doing this. <br />Either:<br />
<ul>
<li><span>You disapprove of the article's content, and want to generate negative reactions to that article on your website so as to support your own position (this is commonly known as a "<em>hate site</em>")</span></li>
<br />
<li><span>You want to create a site where people can comment on the article, either positively or negatively (this is commonly known as a "<em>review site</em>"). </span></li>
</ul>
<br />First, the good news: American law encourages free speech, on the Internet and elsewhere. While it is generally good practice to ask someone for permission before linking to their website, it frequently isn't done, and is not required where your purpose is to comment on the other site's content. Even if your opinion is a little - shall we say loopy? - you have the absolute right to express it online. Just like other people have the right to tell you what an idiot they think you are. <br /><br />But what if someone views the content, reacts negatively, and posts a long-winded "<em>rant</em>" on your website which calls their sanity into question. Are you legally responsible for that? <br /><br /><a href="https://www.eff.org/issues/cda230" target="_blank">Section 230 of the federal Communications Decency Act</a> gives online "<em>publishers</em>" absolute immunity for things that are said by third persons (people unrelated to the publisher) on their websites. So if someone says something bad about the article or its author on your website that isn't true and is designed to damage the author's reputation (what lawyers call "<em>libel</em>" or "<em>defamation</em>"), you are in the clear unless you "<em>actively contribute</em>" to the defamation (for example, adding a blog posting of your own with more inaccurate and damaging information). <br /><br /> Now for the bad news: just because what you are planning to do is legal doesn't mean you should do it. <br /> If you are planning a "<em>hate site</em>," you can expect to hear fairly soon from the article's author (or his lawyers) asking you to "cease and desist" posting derogatory Web postings. While you have the legal right to ignore that request (or post it on your website as a sign your bloggers' contributions are having some impact), that right won't prevent the author or the other website from suing you and forcing you to assert your First Amendment or Section 230 defense. <br /><br />You will almost certainly win the lawsuit, and there's a chance a sympathetic judge will make the other website reimburse your legal expenses if the judge feels the other website's lawsuit was "<em>frivolous</em>" or "<em>without merit</em>". There is no assurance, however, that a judge will do that, and the casebooks are filled with silly lawsuits brought solely for the purpose of shutting down a Website that cannot afford the time and money to mount a legal defense, even if justified (the technical term for these lawsuits is "<em>strategic lawsuits against public participation</em>" or SLAPPs). <br /><br />So think carefully before you set up this link on your website. At the least, you should set up a "<em>screening</em>" feature for this blog so you can look at postings before they appear on your site and either edit or delete ones you think are going to get you into trouble. <br /><br />I really question the value of "<em>review sites</em>" in any event, especially after hearing a "<em>horror story</em>" from a friend of mine. This friend is the author of several popular "how to" books on a particular subject. When his latest book appeared on Amazon.com, he immediately received three negative (one star out of a possible five) reviews which lowered the book's status on Amazon's search engine. When my friend investigated, he discovered that two of the three reviews were from e-mail accounts originating at the publisher of a competing book. <br /><br />My friend called his publisher, which launched an immediate counterattack - having 20 of their junior staffers post favorable (five star) reviews of my friend's book from their personal e-mail accounts in order to offset the three "<em>negatives</em>". The other book's fans counter-counterattacked with more negative reviews, and so forth. <br /><br /> The last time I looked, my friend's book has a four-star rating with reviews from over 80 unique Amazon users . . . not a single one, I suspect, has actually read the book.<span> <br /></span><br /><br /><br /><strong><em>Cliff Ennico</em></strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of "<em><a href="https://www.amazon.com/Crowdfunding-Handbook-Business-Start-Up-Funding/dp/081443360X" target="_blank">The Crowdfunding Handbook</a></em>," "<em><a href="https://www.amazon.com/Small-Business-Survival-Guide-Protecting/dp/1593374062/ref=sr_1_3?keywords=Small+Business+Survival+Guide&qid=1558032231&s=books&sr=1-3" target="_blank">Small Business Survival Guide</a></em>," "<em><a href="https://www.amazon.com/eBay-Sellers-Legal-Answer-Book/dp/081447425X/ref=sr_1_fkmrnull_1?keywords=The+eBay+Seller%27s+Tax+and+Legal+Answer+Book&qid=1558032260&s=books&sr=1-1-fkmrnull" target="_blank">The eBay Seller's Tax and Legal Answer Book</a></em>" and 15 other books. Permission granted for use on DrLaura.com.<br /><br />
Staff
2019-06-11T17:45:00Z
Are you A 'Maturepreneur'?
Staff
http://www.DrLaura.com/b/Are-you-A-Maturepreneur/-721728369079301869.html
2019-05-20T18:06:00Z
2019-05-20T18:06:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><em> </em></p>
Millions of Baby Boomers are leaving corporate America, but few are ready to retire. <br /> <br />The solution for many of them? Maturepreneurship. <br /><br />Older entrepreneurs in their 50's, 60's and 70's make up 25.5% of new businesses started each year, according to Bruce Markewicz, founder of <a href="http://www.maturepreneurtoday.com" target="_blank">Maturepreneur Today</a>, a new information and resource website for "<em>second act</em>" business owners. <br /><br /> But while maturepreneurs have many of the same challenges as younger ones do - marketing their product or service, dealing with competition, finding investors and coping with legal and tax headaches - older entrepreneurs have a number of challenges uniquely their own. Says Markewicz: <br />
<ul>
<li>They have to compete in a marketplace that worships Millennials. </li>
</ul>
<ul>
<li>They have to protect their financial investments and will have less time to recoup any losses from a failed venture. </li>
</ul>
<ul>
<li>Many want to have more work/life balance time for their families, hobbies, and other pursuits, which any entrepreneur will tell you is next to impossible. </li>
</ul>
<br /> "<em>Older entrepreneurs have a lot of financial obligations - home mortgages, aging parents, children in college - and they can't just afford to take a year off and live in the basement on RedBull® and Ramen noodles</em>," says Fran Trelease, founder of <a href="http://www.boomerden.com" target="_blank">Boomer Den LLC</a>, an online consulting firm specializing in cubicle-to-self-employment career transitions. "<em>But often at this stage their ideas are brilliant: they've been stewing on a back burner in the individual's mind for decades, and as a result their ideas and business plans are often much more clearly thought through than the stuff Millennials dream up.</em>" <br /><br />When you hear in the media about America's aging population, it's often presented as a "<em>doom and gloom</em>" scenario: two few young people supporting too many dependent elderly, the national energy level going down and less risk-taking. Someone who thinks this is baloney is <a href="https://chrisfarrell.net/about-me-2/" target="_blank">Chris Farrell</a>, a National Public Radio personality and author of <em><strong><a href="https://chrisfarrell.net/books/" target="_blank">PURPOSE AND A PAYCHECK: Finding Meaning, Money, and Happiness in the Second Half of Life</a></strong></em>. <br /><br />"<em>This is a wonderful thing for the economy,</em>" says Farrell. "<em>People are working longer, they're healthier and better educated, and hey, age discrimination in corporate America is very real so traditional management jobs aren't an option. By starting something of their own, older entrepreneurs are actually less of a burden on the social safety-net.</em>" <br /><br />Many maturepreneurs defy the image we have of entrepreneurs as people who move fast, break fast, grow big, and work 90+ hour weeks. Many of them are solopreneurs, says Farrell: "<em>They are self-employed, maybe with one or two independent contractors or a couple of friends or family members in an informal partnership, with little outside money except for maybe a bank loan and a rolled-over 401k plan.</em>" <br /><br />Which is okay for consulting or online retail businesses, but what if you're on in years and have come up with a truly wonderful idea for a tech product or service? Farrell says that while there isn't hard data, a lot of the Baby Boom entrepreneurs he meets are going into business with their adult children. <br /><br />"<em>The Baby Boom and Millennial generations actually are much closer to each other than I was with my parents - these kids don't want to leave home, but the parents are just as happy to have them stick around,</em>" observes Farrell, adding that 20% of American homes are multigenerational. "<em>A home-based business is a wonderful way to keep the generations together under one roof - the kids bring the hustle, energy, technological skills and 24/7 work ethic, while the parents bring the insight, business sense and wisdom that appeals to investors.</em>" <br /><br /> Still, when it comes to media attention, the emphasis remains on youth: when have you ever seen a local chamber of commerce celebrate "<em>40 over 40</em>" entrepreneurs? And maturepreneurs are faced with a host of unique questions that don't plague their younger counterparts: <br />
<ul>
<li>Why do I want and have to do this? </li>
</ul>
<ul>
<li>Should I tap into my 401(k) to fund this business? </li>
</ul>
<ul>
<li>Could I become so successful that I can't enjoy my grandchildren? </li>
</ul>
<ul>
<li>Am I healthy enough to do this? </li>
</ul>
<ul>
<li>How fast can I reach the point where someone can manage the business for me? </li>
</ul>
<br />That's where Maturepreneur Today comes in. The online forum will be hosting an <a href="https://www.maturepreneurtoday.com/" target="_blank">online Virtual Summit</a> on Tuesday, June 11, 2019, from 9:30 a.m. to 5 p.m. Speakers include former U.S. Army General Stanley McChrystal, former SBA administrator Allen Gutierrez, and (full disclosure) a certain nationally syndicated small business columnist named Cliff Ennico. To check out the full roster of speakers and register online, <a href="https://www.maturepreneurtoday.com/registration-now2" target="_blank">click here</a>. <br /><br />As for the perception that Baby Boomers can't adapt easily or quickly to new technologies and business models, Farrell says that's bunk. "<em>Hey, just look at all the technological change we've lived through, from manual typewriters to IBM Selectrics to Wang dedicated word-processors to desktop computers to smartphones. Don't tell us we can't adapt.</em>" As someone with a basement full of vinyl long-playing records, cassettes, and compact disks, most of which contain the exact same music, I can agree with that. <br /><br />Just don't ask me to subscribe to Spotify® or buy an iPod®. I'm tapped out.<span> <br /><br /><br /><br /></span><strong><em>Cliff Ennico</em></strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of "<em><a href="https://www.amazon.com/Crowdfunding-Handbook-Business-Start-Up-Funding/dp/081443360X" target="_blank">The Crowdfunding Handbook</a></em>," "<em><a href="https://www.amazon.com/Small-Business-Survival-Guide-Protecting/dp/1593374062/ref=sr_1_3?keywords=Small+Business+Survival+Guide&qid=1558032231&s=books&sr=1-3" target="_blank">Small Business Survival Guide</a></em>," "<em><a href="https://www.amazon.com/eBay-Sellers-Legal-Answer-Book/dp/081447425X/ref=sr_1_fkmrnull_1?keywords=The+eBay+Seller%27s+Tax+and+Legal+Answer+Book&qid=1558032260&s=books&sr=1-1-fkmrnull" target="_blank">The eBay Seller's Tax and Legal Answer Book</a></em>" and 15 other books. Permission granted for use on DrLaura.com.<br /><br />
Staff
2019-05-20T18:06:00Z
When Two Heads Are Better Than One
Staff
http://www.DrLaura.com/b/When-Two-Heads-Are-Better-Than-One/-643801934799210477.html
2019-04-29T18:06:00Z
2019-04-29T18:06:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><em> </em></p>
<span>"<em>I currently own a one-person information technology consulting firm, which operates as a limited liability company (LLC). <br /><br />I have a number of small clients. I go out and get the business, but I am also the person who has to do the work to keep the client satisfied. I am making enough money to support myself and my family, but there is not much left over to pay anyone else. I believe I could market this service to larger clients. This would bring in much more revenue, but there is no way I could do all the work a larger client will require. I don't want to hire employees because it's too expensive, and independent contractors are not reliable enough to perform the work on the demanding schedule these clients will require. <br /><br />I recently met an individual who is working for a large IT firm in a nearby city. We are both the same age - 55. He is sick and tired of commuting every day, and is looking for the chance to be part-owner of a business. <br /><br />This individual is almost the perfect complement to me. He does not understand marketing at all, and is not comfortable selling clients or performing customer relations activities. He is, however, a genius at the IT services my company performs. He is the type of person who will work throughout the day and evening to finish a project on time, with as little human contact as possible. <br /><br />I am thinking of bringing him on board as a 50/50 partner in my LLC. I would give him my existing projects to work on, which would enable me to devote all of my time to attracting and soliciting business from larger clients. If I am successful in generating one or two larger clients within the next six to 12 months, we should be able to generate enough income to pay ourselves a 'living wage'. <br /><br />My question is this: am I being too generous giving him 50% of my LLC up front, or should I give him a small percentage of the LLC now and let him 'work his way' up to 50% ownership? I really want to work with this person, but I want to be sure I am being fair to myself as well.</em>" <br /><br />What you have described here is almost the perfect business partnership. <br /><br />People often go into partnership with people who are similar to themselves, but the best partnerships are between people with different skills who complement each other. The best partnerships I have seen in 30 years of working with entrepreneurs are "<em>inside-outside</em>" partnerships such as the one you want to create. One partner (the "<em>outside</em>" partner) handles the marketing and other activities involved in getting, keeping and satisfying customers. The other partner (the "<em>inside</em>" partner) has more of a "<em>project management</em>" mentality and delights in getting each client job done on time and under budget. <br /><br />If the "<em>outside</em>" and "<em>inside</em>" partners communicate well with each other, and respect each other's sphere of influence (the "<em>inside</em>" partner doesn't interfere with the "<em>outside</em>" partner's customer relationships, and the "<em>outside</em>" partner doesn't micro-manage the "<em>inside</em>" partner's work), the result can be a truly dynamic and successful partnership. <br /><br />If you bring this individual on as a 50% partner, you will have to share hlf of the profits from each project with him from day one, unless he is independently wealthy and can wait to be compensated until the business ramps up. Since your business is only generating enough income right now to support you, you may have to cut back your lifestyle until such time as you land some bigger customers that can support the both of you. Also, if this person turns out to be a total idiot, you and he will be "deadlocked" and the LLC may need to be shut down. <br /><br />Since you don't really know this person, I would recommend that you start by subcontracting him out on your next couple of jobs so you can see how he performs under pressure. Your client would pay you, and you would pay him an agreed-upon percentage of the net proceeds from the job. <br /><br /> If this person insists on getting equity in your business up front (a "<em>red flag</em>" if ever there was one), I wouldn't give him more than 5% to 10% of your LLC. His equity should be "<em>nonvoting</em>," meaning he gets a piece of your profits but he can't tell you how to run the business. If your business has any significant value (your accountant should be able to tell you if it does or not, although he/she may be reluctant to calculate the value), his equity should be in the form of a "<em>profits interest</em>," where he participates only in the future growth of your business. That's important for tax reasons. <br /><br />Lastly, your attorney should draft an "<em>operating agreemen</em>t" (similar to a partnership agreement) between the two of you, with a provision saying you can "<em>vote him off the island</em>" at any time and buy his equity in the LLC back for a nominal amount (usually $1). You want this relationship to be "<em>snap on, snap off</em>" until you know for sure he will add lasting value to your business without driving you crazy.<span> </span><br /><br /><br /><br /></span><strong>Cliff Ennico</strong> (crennico@gmail.com) is a syndicated columnist, author and former host of the PBS television series "<em>Money Hunt</em>." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at www.creators.com. COPYRIGHT 2019 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM Permission granted for use on DrLaura.com.<br /><br />
Staff
2019-04-29T18:06:00Z
Twelve Little Words That Can Help You Predict The Future
Staff
http://www.DrLaura.com/b/Twelve-Little-Words-That-Can-Help-You-Predict-The-Future/25834607216066829.html
2019-04-11T16:05:00Z
2019-04-11T16:05:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><em> </em></p>
<span>It's a rough economy out there, but even scarier than the persistent threats of recession, deflation, countries defaulting on their debt, governments' inability to balance the budget, and other boogey-people, is the pace of change itself. <br /><br />Everything's changing so fast, and the world economy so volatile, that it seems impossible to prepare and plan for the future if you are a business owner looking to adapt to change, or if you are an unemployed corporate executive trying to figure out where tomorrow's job opportunities will be. <br /><br />Having said that, though, there are some ongoing changes in our economy that most people agree will probably continue until well into the future. These changes, about which entire books have been written, can be easily summarized in twelve little words. Commit them to memory. Write them down on a Post-it Note®, put the note up on your computer, your refrigerator door, or somewhere else where they are readily visible, and read them at least once every day. Once you memorize them, recite them like a mantra, and plan your business or career future with them constantly in mind. <br /><br />"<em>The Future Is Digital.</em>" Make no mistake about it. "<em>Brick and mortar</em>" businesses in just about every industry are succumbing to the siren pull of the Internet. Business models that have been around for decades, even centuries, are slowly but surely disappearing into the "<em>cloud</em>", never to return to planet Earth. Most of the work you do for your clients will probably be done by software "<em>bots</em>" in 10 years' time - a lot faster, and (probably) a lot better. <br /><br />Whatever it is you do, sooner or later there will be a virtual solution for it at extremely low cost, and you won't be able to compete. <br /><br />Some examples:<br />
<ul>
<li><span>Check cashing stores? Not necessary in an era of digital payments and debit cards.</span></li>
<br />
<li><span>Attorneys, accountants and financial advisors? Think advice and "<em>prepared forms</em>" websites you can access for free (or for pennies).</span></li>
<br />
<li><span>Printed books and periodicals? Every time I board an airplane I see more and more Kindles and iPads and fewer and fewer "<em>dead trees</em>".</span></li>
<br />
<li><span>Retail and distribution outlets? It's much quicker, and more convenient, to shop online than to navigate your local mall - and you can even get free shipping. </span></li>
</ul>
<br />Look at your kids, or grandkids, at work and play. They grew up with the Web and video games. Everything they touch is digital. They are the future - pretty soon (if not already) they will form the core 18 to 35 year old demographic everyone will be pandering to. That pandering will take place in cyberspace. <br /><br />"<em>The Future Is Global.</em>" State and national boundaries are meaningless in an era where I can order something directly from an online merchant in Bangladesh who has no physical presence in North America, or outsource a key part of my business to a country where they don't even speak English. Two-thirds to three-fourths of the World's population are joining the world economy for the first time in human history. Sooner or later wealth will be more evenly distributed throughout the Globe, and few countries or continents will have a competitive advantage over any others. Except where access to local natural resources is critical, any business will be able to be conducted anywhere on Earth. <br /> <br />"<em>The Future is Freelance.</em>" (Okay, maybe that's 13 words instead of 12). The concept of "<em>employment</em>" as we know it probably won't exist in coming decades, or if it will, it probably will be viewed as a temporary stepping stone to something else. The corporate career ladder will disappear. Instead, people with marketable knowledge and skills will bid to participate in specific projects hosted by companies - or teams -- that are more or less virtual. They will "<em>float</em>" from project to project (or work on several projects simultaneously), from company to company, as independent contractors, picking up experience and learning points that will enable them to bid competitively on progressively more advanced, and therefore more lucrative, projects. When they get tired of doing that, they will form virtual companies and begin soliciting virtual "<em>teams</em>" of their own. <br /> <br />"<em>The future is digital; the future is global; the future is freelance</em>" - twelve little words that can give you real insight into where future opportunities lie. So how do you take this and translate it into a real action plan? Simple - by recognizing that because you can't "beat" these trends, you had better "join" them. Now's a good time to sit down at your computer with a blank word processor page in front of you and a VSOP Brandy or single-malt Scotch by your side, and ask yourself the following questions: <br /><strong><br />How can I adjust what I do to fit a more digital, global, freelance world? </strong><br /><br /><strong>How can I help individuals and businesses adjust to this world?</strong> <br /><br />I don't know the answers any better than you do (although I have some ideas). What I can tell you is that the answers, once you find them, are the business opportunities of the future. The people who will make money, survive, thrive and prosper in the coming century will be those who find the answers, and act upon them.<span> </span><br /><br /><br /><br /></span><strong>Cliff Ennico</strong> (crennico@gmail.com) is a syndicated columnist, author and former host of the PBS television series "<em>Money Hunt</em>." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at www.creators.com. COPYRIGHT 2019 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM Permission granted for use on DrLaura.com.<br /><br />
Staff
2019-04-11T16:05:00Z
When Customer Service Bumps Up Against Economic Reality
Staff
http://www.DrLaura.com/b/When-Customer-Service-Bumps-Up-Against-Economic-Reality/-752051466631743056.html
2019-04-03T16:05:00Z
2019-04-03T16:05:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><em> </em></p>
<span><br />On a recent business trip to a beach resort in California, I was called upon to find a good local restaurant for two important California-based contacts who wanted to meet with me over dinner. <span> <br /><br /></span>As it happened, both of them liked steakhouses, and the hotel where I was staying boasted one of the top steakhouses in the area.<span> <br /><br /></span>I made it a point to check out the restaurant - a gorgeous interior design, an impressive wine list, and write-ups from just about every gourmet magazine imaginable. The restaurant also had a large bar area with seats, but this was clearly separated from the more formal dining area. Duly impressed, I made reservations for three at 6:00 p.m.<br /><br /><span> </span>When my guests arrived at the hotel, I was surprised to find a jazz trio playing in the bar area of the restaurant. Not bad. We sat down, ordered our meals (which, for the record, were delicious), and began our business discussions.<span> <br /><br /></span>All of a sudden, around 6:30 p.m., the noise level from the bar rose to the level where my colleagues and I could not hear ourselves think. At the same time, the restaurant's wait staff disappeared - we did not see a waiter for at least 15 to 20 minutes. We and the other couples having dinner at the restaurant all commented on the change in atmosphere.<span> <br /><br /></span>When I excused myself to go to the men's room, I found 35 tipsy people sitting around a large table in the bar area. Wearing Hawaiian shirts and board shorts, these people were screaming at each other, singing along with the band and breaking into choruses of "<em>Happy Birthday!</em>" every few minutes. <span> <br /><br /></span>Virtually all of the wait staff were attending upon this raucous party.<span> </span>When I asked a waitress what was going on, I was told it was a convention of surfing enthusiasts (as in "<em>Cowabunga!</em>" and "<em>Gnarly, Dude!</em>") that was staying at the hotel and had just showed up "<em>en masse</em>" at the restaurant to have dinner together.<span> <br /><br /></span>When I complained that the restaurant was ignoring its other (presumably higher paying) guests, and blowing its image as a high-class venue for expense account diners, the waitress said she would speak to the manager. I asked that someone tell the surfing party to pipe down, as they were disturbing other diners in the restaurant. The manager never showed up, the party continued in full swing, and the dining room patrons did not see a waiter for another 20 minutes. Two tables of guests left the restaurant without paying their bills, and no one stopped them.<span> <br /><br /></span>Needless to say, my colleagues were a bit put out. One of them said "<em>Cliff, if we had wanted this sort of environment, we could have gone to T.G.I.F.'s or Hooters! This is ridiculous for what we're paying.</em>" To appease them, I treated to dinner. The waiter received no tip. I apologized, but told him the restaurant's failure to control the surfing party might possibly have cost me much more -- a relationship with some key clients (when stuff like that happens, everyone questions your judgment, not the restaurant's).<br /><br /><span> </span>On our way out the door (the surfing party still in full swing, with dancing at the bar and high-volume requests for Beach Boys classics from the jazz trio), I once again asked for the manager but was told he was too busy to speak to me because he was personally waiting tables (!) for the surfing party. I had already made up my mind to write a column about that evening: about how restaurants and other small businesses need to cultivate the image their clientele demands and stick with it, to avoid giving their customers flea-market service at Cartier prices, etc., etc.<span> <br /><br /></span>But that's when things - and my mood -- changed.<span> <br /><br /></span>The lady at the cash register apologized profusely for the chaos, and told me "<em>we really had no choice but to take these surfer people. You are right, we pride ourselves on being a high-class establishment. But the tourist business has been off badly in Orlando this year, and that's affected the local business community. Frankly we're not seeing as many customers like you. When a party of 35 people shows up unannounced, unfortunately we cannot turn them away. We need their money too badly.</em>"<br /><br /><span> </span>I'm still not happy with the way the restaurant managed things that evening - someone (preferably the manager) should have explained the situation to me and my guests, and should have offered some sort of discount (or at least a free drink) as an apology for the disruption. They should have kept at least one waiter focused on the dining room so customers didn't have to wait an hour for their creamed spinach.<span> <br /><br /></span>Still, it's hard to fault the cash register lady's logic. Coping with troubled times often means throwing away the rule book and doing whatever it takes to survive. Gnarly, dude.<br /><br /><br /><br /></span><strong>Cliff Ennico</strong> (crennico@gmail.com) is a syndicated columnist, author and former host of the PBS television series "<em>Money Hunt</em>." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at www.creators.com. COPYRIGHT 2019 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM Permission granted for use on DrLaura.com.<br /><br />
Staff
2019-04-03T16:05:00Z
Spreading Out The Tax On Lottery Winnings
Staff
http://www.DrLaura.com/b/Spreading-Out-The-Tax-On-Lottery-Winnings/-443534932002965245.html
2019-03-12T17:45:00Z
2019-03-12T17:45:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><em> </em></p>
<blockquote><em>"I have an unusual question for you. If I win a large prize in the lottery, should/could I establish a non-profit corporation to receive the prize? I asked a financial advisor about this and he said that I could do this, and also have the identity of the manager (me) hidden from the public. </em><br /><br /><em>There are two reasons I have for wanting to do this. The first is to keep my identity secret so that no one will know that I won the money. The second is to spread the winnings out over several years, thus possibly lowering the tax rate. According to him, the money will not be taxed when it is paid to the organization by the lottery commission, but only when it is dispersed by the organization. </em><br /><br /><em>I am not so much worried about paying the taxes, but keeping my identity secret is very important. I have read and seen too many instances where families have been torn apart because there is no "fair" way to share the money. Someone will always feel they did not get as much as they should have. Do you have any thoughts on this?"</em></blockquote>
<br />First of all, this is a WONDERFUL problem to have. Congratulations! <br /><br />Let's start with the basics: lottery winnings are "<em>income</em>" and you must pay federal and state income taxes on them. <br /><br />At the federal level, if you win more than $5,000 in the lottery, 25% must be withheld from your winnings for federal income tax purposes. You will receive a Form W-2G from the lottery commission showing the amount of lottery winnings paid to you during the year and the amount of federal and state income tax withheld. <br /><br />You report your lottery winnings as income in the year, or years, you actually or "<em>constructively</em>" receive those winnings. If you're required to take the winnings in annual installments, you only report each year's installment as income for that year. Most states require you to choose between "<em>lump sum</em>" and installment payments when you buy your ticket; others will allow you to make the choice after you've won. But the choice usually must be made within a specified time period. <br /><br />I think your financial advisor is recommending you set up a "<em>private foundation</em>" to claim the winnings. For a concise summary of the IRS rules on private foundations, see "<em>The Life Cycle of a Private Foundation</em>," at <a href="https://www.irs.gov/charities-non-profits/private-foundations/life-cycle-of-a-private-foundation" target="_blank">https://www.irs.gov/charities-non-profits/private-foundations/life-cycle-of-a-private-foundation</a>. <br /><br />It isn't easy - or quick - to set up one of these. First, you must create the corporation, which will take a week or two. Then, the corporation will have to apply for exemption from federal and state income taxes under Section 501(c)(3). The IRS does not rush to grant these exemptions. In fact, they are currently "<em>cracking down</em>" on nonprofit abuses and if they even suspect that your corporation does not have a bona fide charitable purpose, they will delay, and delay, and delay . . . <br /><br />Your financial advisor is correct that most states will not require you to disclose your identity when setting up the corporation, as long as you use a "<em>registered agent</em>" service such as Cogency Global Inc. (<em><a href="http://www.cogencyglobal.com" target="_blank">www.cogencyglobal.com</a></em>). This will cost between $100 and $200 a year. You should also plan to pay $5,000 to $10,000 a year (to your financial advisor, I suspect) to do the required legal and tax paperwork for your private foundation. <br /><br />A cheaper, and quicker, way to preserve your secrecy is simply for you (and your spouse) not to say anything to family members about your winnings - no law requires you to do so. And if word leaks out and creates divisions within your family, all I can say is "<em>welcome to the upper class.</em>" These are issues that all wealthy people face, wherever their money came from. This is why all wealthy people (even "<em>nouveau riche</em>" like yourself) need to hire top-notch estate planning attorneys to ensure that the division of wealth upon your death is as fair as possible. Frankly, if it were me, I would spend my money on that rather than a private foundation. <br /><br />If the fear that your sudden wealth will destroy your family is simply unbearable, consider doing what Microsoft Corp. founder Bill Gates has said he plans to do: create separate "<em>trust funds</em>" for each of your kids (the same amount of money for each kid) with enough money to get each kid through college and graduate school ($300,000 apiece should do it). <br /><br />Then, donate the rest of your winnings to a bona fide public charity (to find out if a charity is bona fide, search online at <em><a href="https://www.irs.gov/charities-non-profits/tax-exempt-organization-search" target="_blank">https://www.irs.gov/charities-non-profits/tax-exempt-organization-search</a></em>). You will get a huge charitable deduction, you will receive tons of positive publicity, you will be seen as a "<em>hero</em>" in your community, and your kids probably won't hate you too much since they were treated equally. <br /><br />As for your other family members, buy them lottery tickets . . . <span> <br /><br /><br /><br /></span><strong>Cliff Ennico</strong> (crennico@gmail.com) is a syndicated columnist, author and former host of the PBS television series "<em>Money Hunt</em>." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at www.creators.com. COPYRIGHT 2019 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM Permission granted for use on DrLaura.com.
<p> </p>
Staff
2019-03-12T17:45:00Z
Got a College Grad In Your Basement? Call the Den Mothers!
Staff
http://www.DrLaura.com/b/Got-a-College-Grad-In-Your-Basement--Call-the-Den-Mothers!/-61832452913691904.html
2019-03-05T18:58:00Z
2019-03-05T18:58:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><br /><br />Do you have a recent college graduate living in your basement? Is your child getting close to graduating from college with few or no job prospects on the horizon? Has your son or daughter "<em>boomeranged"</em> back to you after some time living on their own? <br /><br />If so, you are not alone. <br /><br />Here are some sobering statistics:</p>
<ul>
<li>Only 27% of college graduates have a job waiting for them when they graduate.</li>
<br />
<li>Another 16% will take a year or more after graduation to find one.</li>
<br />
<li>More than 1/3 of recent college graduates who took a year or more to find work after graduation make less than $24,000 a year (pretax).</li>
</ul>
<ul>
<li>Student debt is at an all-time high of $1.5 trillion. </li>
</ul>
<br />For college grads, it's a scary world out there. Making it worse is that career service specialists on most college campuses are overwhelmed, with 1,765 students for every one career placement advisor in American colleges and universities.<br />
<ul>
</ul>
<br />For college grads, it's a scary world out there. Making it worse is that career service specialists on most college campuses are overwhelmed, with 1,765 students for every one career placement advisor in American colleges and universities.<br /><br />Cue the "<em>Den Mothers</em>" - Randye Spina and Frances Trelease, founders of the Millennial Den℠ online career coaching service (<a href="http://www.millennialden.com" target="_blank">www.millennialden.com</a>). <br /><br />Millennial Den℠ offers a range of online programs and personal one-on-one consulting designed to help new and recent college graduates "<em>brand</em>" themselves for success in the job marketplace, based on the founders' combined 38 years experience as adjunct professors, marketing experts and (in Frances' case) mother of two college students.<br /><br />"<em>For me, the wake-up moment was when I ran a professional development workshop last year at a local university,</em>" says Spina. "<em>Most of those in attendance had no idea that recruiters existed, or that you could proactively write a letter to a company and enclose your resume. They all felt that they could just go online and land a $100,000 job without any effort. We were shocked by that.</em>" <br /><br />"<em>They also were uninformed about the salaries different jobs pay,</em>" adds Trelease. "<em>They weren't aware you can go on websites like salary.com and do research on what the typical salary ranges are for various entry-level positions</em>."<br /><br />Further research and experience with students at several campuses in the Northeast convinced the pair that just teaching basic job search skills, or offering help with resumes and cover letters, wouldn't be enough. Instead, the two Den Mothers developed a comprehensive personal marketing strategy for college grads, using the traditional "<em>five P's</em>" of marketing - product, promotion, packaging, place, and price. <br /><br />Part of the problem - and this hasn't changed in decades - is that college students are so focused on getting their degree that they don't take the time necessary to focus on career planning until it's too late. "<em>Some don't even know the career services office exists until they are halfway through their senior year. And, our research shows that just 40% of college students make use of those services,</em>" comments Spina. <br /><br />But a growing part of the problem has to do with the way students have grown accustomed to interacting with each other.<br /><br />"<em>Today's millennials spend virtually all of their time online, and don't know how to 'brand' or package themselves for in-person job interviews,</em>" says Trelease. "<em>Believe it or not, the typical recent college graduate has no idea how to properly shake someone's hand, or how important it is to look someone in the eye when speaking to them</em>". <br /><br />The prevalence of social media can also create problems for potential job hunters: the Den Mothers have published a free e-book (available on their website) on ways students and graduates can "<em>clean up</em>" their social media profiles before they look for jobs. "<em>Any pictures or videos of you drinking, or otherwise just acting like a silly teenager need to be scrubbed completely from your social media,</em>" says Spina. "<em>You have to look like a professional, one that belongs in a certain environment and fits the employer's corporate culture</em>". <br /><br />For example, students looking for engineering jobs may have to present themselves somewhat differently than students looking for marketing jobs, and law students may have to brand themselves differently than students looking for tech jobs in Silicon Valley. Being fashion-forward is great if you are looking for an internship on Madison Avenue, but won't help you score points if you're looking for a laboratory job.<br /><br />The Den Mothers stress that they are personal career coaches, not recruiters, and do not get involved directly in the job-hunting process (by recommending specific employers, for example), although they will help students avoid wasting valuable time looking for jobs that don't fit their academic background or credentials. <br /><br />So, time for the big question: is it possible for a humanities major with no background in STEM (science, technology, engineering, and mathematics) to get a job in today's world? <br />"<em>There are myriad careers available to humanities graduates, including marketing, advertising, business, public relations - the list goes on,</em>" says Trelease. "<em>With the right professional packaging, non-STEM graduates can have that same high rate of success."</em> <br /><br />For example, in the case of yours truly who majored in history and philosophy (with a minor in religion), they might someday become a world-famous small-business columnist.<a href="http://www.SucceedingInYourBusiness.com" target="_blank"><br /></a>
<p><br /><br /></p>
<strong>Cliff Ennico</strong> (crennico@gmail.com) is a syndicated columnist, author and former host of the PBS television series "<em>Money Hunt</em>." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at www.creators.com. COPYRIGHT 2019 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM Permission granted for use on DrLaura.com.
Staff
2019-03-05T18:58:00Z
A Basic Business Lesson
Staff
http://www.DrLaura.com/b/A-Basic-Business-Lesson/219744312438874404.html
2019-01-26T18:13:00Z
2019-01-26T18:13:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com</a></p>
<blockquote>"<em>I have been a hair stylist for over 20 years. <br /><br />Last year my salon shut down and I decided to start my own salon since I had over 100 customers. I rented some space in town at a very affordable price, and the good news is that almost all of my customers stayed with me. <br /><br />The bad news is that I know nothing about running a business. <br /><br />I hired an accountant and meet with him every 3 months, but everything he tells me is over my head. I also suspect I'm paying too much in taxes, since I keep in touch with the other stylists from my old salon and they seem to be paying a lot less in taxes than I am.<br /><br /> Where can I go to get a basic education in how to run a business?</em>"</blockquote>
<br />You have come to the right place . . . <br /><br />First of all, congratulations on having the courage to strike out on your own. You have already conquered the first step to a successful business - getting lots of customers and keeping them happy. <br /><br />The good news is that you don't have to become an accountant or a lawyer to learn how to run your business. You just need to learn what to do, and when to do it. <br /><br />The first step is figuring out how much money you need to make each month to stay in business, pay all your bills, and have something left over to have fun with. Here's the simple way to do it (trigger warning: if any accountants or financial professionals are reading this column, I'm going to be really dumbing this down). <br /><br />First, sit down with a pad and paper and figure out how much you need to live on each year after taxes. Start with what you used to take home from your former salon (you can find this information on the IRS Form W-2 you received from your old employer last year). Add another 25% to that number (multiply by 1.25) because, hey, you deserve a raise. <br /><br />Then, figure out what your business expenses will be this year - your accountant should be able to help you with this by putting together a "<em>chart of accounts</em>" (basically, a list of everything you spend money on in your business, broken down by categories such as "<em>equipment</em>," "<em>supplies</em>" and so forth). For a sample of what this might look like, go to <a href="http://www.easysalonbookkeeping.com" target="_blank">www.easysalonbookkeeping.com</a>, click on the "<em>USA</em>" link and then click on your state.<br /><br />Then, figure out what your effective tax rate will be this year. Your accountant should be able to give you this information based on what you've done to date. <br /><br />Armed with these three pieces of information (how much you need to live on, business expenses and effective tax rate), you are now ready to do some business planning. Let's assume that you need $60,000 a year to live on, you will have $20,000 in business expenses this year, and that your total effective tax rate (federal and state income tax plus Social Security and Medicare) is 35%. <br /><br />Start with the $60,000 you need to live on this year, and divide that by 0.65 (since the $60,000 is after taxes and your effective tax rate is 35%, the $60,000 is 65% of your total taxable income which is what you are now calculating). You should end up with $92,307 and some change. <br /><br />Now, add the $20,000 in business expenses for a total of $112,307. This is roughly what you will need to earn this year in order to end up with $60,000 in take-home pay. Divide that number by 12 and you will end up with $9,359. This is how much you need to earn each month to end up with $60,000 in take-home pay at the end of the year. <br /><br />Of course, it is highly unlikely you will earn exactly $9,359 each month. Some months you will make more than that, and some months you will make less. The $9,359 is merely a "<em>target</em>" you try to hit each month. If you are making consistently less than $9,359 a month over several months, then something is wrong - you will need to make more money each month (by raising your prices, or working harder), cut back on your business expenses, or learn to live on less money. <br /><br />This is not an exact science, but as you work through your numbers each month you will get better and better at it, so just be patient. <br /><br />As for where to get business advice, your best bet is to contact your local SCORE chapter. SCORE is a nationwide organization of people (mostly older and retired business people) who volunteer their time to provide free business advice to people just like you. To find the SCORE chapter nearest you, go to <a href="http://www.score.org" target="_blank">www.score.org</a>, click on the "<em>find a mentor</em>" link, and then type in your zip code. <br /><br />With any luck, your local chapter may know a retired salon owner or hair styling professional who will be able to answer all of your questions. <br /><strong><br /><br /><br />Cliff Ennico</strong> (crennico@gmail.com) is a syndicated columnist, author and former host of the PBS television series "<em>Money Hunt</em>." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at www.creators.com. COPYRIGHT 2019 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM Permission granted for use on DrLaura.com.
Staff
2019-01-26T18:13:00Z
'Royalty Financing' The New, New Thing In Venture Capital
Staff
http://www.DrLaura.com/b/Royalty-Financing-The-New,-New-Thing-In-Venture-Capital/-604882280773160250.html
2018-10-12T18:13:00Z
2018-10-12T18:13:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a></p>
<br />
<blockquote>
<p>"<em>I have a successful retail business that I want to take online with a killer website and a social media marketing campaign on Facebook and Twitter. <br /><br />The problem, of course, is money. I need to raise $100,000 to build the website and launch the campaign, but am having trouble finding the money. My business has strong cash flows, but has never officially shown a profit. There aren't a whole lot of tangible assets in this business, and I don't have tons of equity in my home, so most local banks won't even talk to me. And I'm not really willing to give up 50% of my company to a venture capitalist. <br /><br />Are there any other options out there I may have overlooked?</em>"</p>
</blockquote>
You sound like a near-perfect candidate for the hottest new development in venture capital: so-called "<em>royalty financing</em>". <br /><br />The concept of royalty financing has been around for a long time. Basically, the idea is this: someone lends you money (in this case, $100,000), but instead of a fixed interest rate, you agree to pay the lender a percentage of your gross sales (not net profits) each month - 2% to 6% is customary. The royalty payments may continue for a specified time period (generally three to five years), or until the lender has received all of their money back plus a 20% return on their investment (in this case, $120,000 in total payout). Once the time period expires or the desired return has been achieved, the loan is considered fully paid and you stop making the royalty payments each month. <br /><br />Most, but not all, royalty financings also involve an "<em>equity kicker</em>" - the lender takes a piece of equity in your company (or, more commonly, a warrant to acquire shares) on top of the royalty payments each month. So if your company grows and becomes profitable, the lender will be entitled to a piece of your "<em>upside</em>" growth. <br /><br />Why is royalty financing gaining traction right now? Basically, in a difficult economy where most entrepreneurial companies are struggling to break even and taking longer to become profitable, lenders to growing businesses have become tired of waiting for their money. Your business is not currently showing a profit, and it will have to do so before legally you can pay any sort of dividend or distribution to your investors. That may take years. Because most "royalty financings" are structured as loans, they do not run afoul of state laws requiring that dividends be paid only out of "<em>earnings and profits</em>". And your investors see a steady return on their investment each month. <br /><br />There are several advantages to both parties in royalty financing. Because the lender is getting money back every month, it is taking less of a risk than it would be making a traditional equity investment in your company. If your business grows rapidly, so will the lender's monthly royalty payments, meaning they will get their return on investment a Heck of a lot faster than they would buying stock in your company. Accordingly, a royalty investor may be willing to accept a smaller amount of equity as its "<em>kicker</em>" than it would in a traditional equity investment -- this leaves you the entrepreneur with more equity in your business, ad less dilution for you and your business partners. <br /><br />Also, the default provisions in royalty loans are usually much less onerous than in traditional bank financings. While most royalty loans require a minimum royalty payment each month, many investors will allow you to pay less than the minimum royalty for two, sometimes even three, consecutive months without putting you into default. Many royalty investors will also insist on converting their loan into straight equity in your company, rather than foreclosing on their loan, if you default in your royalty payments. <br /><br />There are, however, some disadvantages to royalty financing. If your company is not demonstrating strong, steady and predictable cash flows each month, you are not likely to interest an investor in royalty financing. Also, royalty financing deprives you of some much-needed cash each month that you otherwise would pay for rent, payroll, business expenses, not to mention your compensation as owner of the business. Most investors insist that their royalty payment be made "<em>on top</em>" - i.e. before you pay other expenses - which may leave you cash-strapped at the end of the month if business unexpectedly turns down. <br /><br />Having said that, though, for businesses with few tangible assets and zero profits, it may be the only type of financing you can get in a difficult market. <br /><br />So where do you find royalty investors? A number of firms are setting up venture funds built entirely around the royalty financing concept. Among those are Arctaris Capital Partners L.P. in Waltham, Massachusetts (<a href="http://www.arctaris.com" target="_blank">www.arctaris.com</a>); Cypress Growth Capital LLC in Dallas, Texas (<a href="http://www.arctaris.com" target="_blank">www.cypressgrowthcapital.com</a>); Revenue Loan LLC in Seattle, Washington (<a href="http://www.revenueloan.com" target="_blank">www.revenueloan.com</a>); and Noventi Ventures in Menlo Park, California (<a href="http://www.noventivc.com" target="_blank">www.noventivc.com</a>). <br /><br />But as royalty financing becomes more popular, even local venture firms will be testing the waters. There's no harm in asking . . . <br /><strong><br /><br /><br />Cliff Ennico</strong> (crennico@gmail.com) is a syndicated columnist, author and former host of the PBS television series "<em>Money Hunt</em>." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at www.creators.com. COPYRIGHT 2018 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM Permission granted for use on DrLaura.com.
Staff
2018-10-12T18:13:00Z
Five Secret Stresses That Block Your Success
Staff
http://www.DrLaura.com/b/Five-Secret-Stresses-That-Block-Your-Success/361678497317000260.html
2018-09-29T18:59:00Z
2018-09-29T18:59:00Z
<p><strong><br /><em>By Anne Leedom</em><br /></strong><a href="http://www.anneleedompr.com" target="_blank">www.anneleedompr.com </a></p>
<p><br /><br />We all know people, either in the public eye or personally who just "<em>succeed</em>." They may come from difficult backgrounds and have fought an uphill battle to get to where they are now. Somehow, they have this mysterious quality, some intangible way about them that seems to just catapult them into success in unexpected ways. <br /><br />I have studied many successful people through my work over the years and I have found five crucial factors that are consistent in all of the people I define as successful. They have qualities in common that universally seem to help them become successful that go beyond the standard qualification of hard work, determination and focus.<br /><br />Here are the five secret qualities I recommend you make a priority in your life if being successful is your goal. Once you do make these parts of your daily life, I believe you will have all the success you could ever want! Professionally or personally, its up to you how far you reach. Achieving your goals can be as simply as eliminating 5 secret stresses that become obstacles to success.<br /><br /></p>
<ol>
<li><strong>Relationships.</strong><br />Oddly enough, successful people typically struggle less with relationships. They SHOULD struggle more! They are very busy, have extremely demanding lives, often are geographically separated due to travel and may not share all the same interests as their partner. However, they do have the laser-like focus and the daily discipline it takes to have great relationships! These two qualities are important in business and are the foundation of every good relationship. Prioritizing what really matters in a relationship and maintaining the discipline to actively care everyday, no matter how difficult, are traits successful people just inherently understand and utilize daily.</li>
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<li><strong>Beliefs. </strong><br />Research consistently shows us that the beliefs we hold about ourselves and our life is often the number one factor that determines the quality of our lives. The simple and often subconscious beliefs that make up your day will ultimately create your success. Examine your thoughts throughout the day and see how many times you find your belief making you tired, distracted, bored, less passionate, frustrated or losing focus. Taking a hard look at these hidden beliefs and changing them out for more powerful and effective beliefs will go a long way to creating your success.</li>
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<li><strong>Clutter. </strong><br />We all have it. It is unavoidable in today's crazy, over-scheduled world. The secret is not to eliminate clutter. That can actually be counter-productive. You may be like me and spend a bit more time de-cluttering, creating a highly organized and pleasing environment and not focusing on the work at hand. On the other hand, too much unproductive clutter that causes ongoing distraction is not helpful. Work toward achieving a sense that your clutter is the result of your productivity and not a way to avoid being productive.</li>
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<li><strong>Vision. </strong><br />We all have dreams. Some people have great dreams and work their entire lives to achieve them, sadly never to see them fully realized. There is a big difference between a dream and a vision. Vision requires a specific plan, complete strategies and a long-term pathway to success. Sit down and map out your vision. A dream takes a moment to write down. It's a statement of what you want to do or to become. A vision requires a fully detailed and realistic plan based on your dream. Take the time to create and then follow through daily on a vision for success that will help you not only get to the Superbowl, but to WIN!</li>
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<li><strong>Forgiveness.</strong><br />This is a powerful secret not many people think about on their road to success. Are you motivated for the right reasons? Make sure your efforts are truly based on your dreams and vision you have now crafted and not a misguided reaction to someone or something that happened in your past. Many successful people do very well on that kid of momentum. However, true staying power requires a level of energy, passion and focus that can only come from acting on your heart and your mind. Don't make your success be about anything other than what you want to create. The momentum that comes from being authentic and creating something bigger than yourself will take you farther than you ever dreamed...or envisioned!</li>
</ol>
<p><br /><br />© Copyright 2018 Anne Leedom <br /><br /><strong><em>Anne Leedom</em></strong> is the Founder of Anne Leedom PR, a premier online branding and placement agency for experts, authors, and products. Anne is featured regularly in national media and has provided the branding strategies for many of today's leading experts. For more information visit <a href="http://www.anneleedompr.com" target="_blank">www.anneleedompr.com</a>. Permission granted for use on DrLaura.com.</p>
Staff
2018-09-29T18:59:00Z
Do Personal Guarantees Go On Forever?
Staff
http://www.DrLaura.com/b/Do-Personal-Guarantees-Go-On-Forever/82363401822882097.html
2018-08-14T18:13:00Z
2018-08-14T18:13:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a></p>
<blockquote><em>"My partner and I bought a small business five years ago from the person who originally started it. We assumed his existing lease for a terrific retail space, and personally guaranteed the lease. As we are both getting ready to retire, we decided to sell the business. We found a great buyer, who is willing to pay us an above-market price because of the business location. <br /><br />But we've hit a big snag, in the form of our landlord, who will not release us from our personal guarantees of the lease even though our buyer has agreed to give his own personal guaranty of the lease. There are seven years left on our lease, and while we like the buyer we're not willing to put our houses on the line for that long a period of time. <br /><br />What's even worse, the landlord wants a personal guaranty from the person who sold us this business five years ago! We've kept in touch with him, but there's no way we can ask him to guarantee a lease for someone he doesn't even know or care about. <br /><br />Do you have some ideas as to how we can deal with this situation?"</em> </blockquote>
<br />I represent a fair number of people each year who are buying or selling small businesses, and one thing is universally true: whenever there's a problem in a business sale, it almost invariably comes from the landlord of the business premises. <br /><br />Unlike the seller and the buyer, who are both motivated to get the deal done, the landlord has no incentive to make the deal happen. I've heard more than one landlord tell me that "<em>whenever a business changes hands, it inevitably starts going downhill and we have to worry about getting our rent check on time each month.</em>" Also, given the current weak economy, a lot of landlords are terrified about tenants defaulting on their rent and are looking for a lot more protection than they did a couple of years ago. <br /><br />But requiring a personal guaranty from someone who hasn't been involved in the business for five years? Clearly, this landlord realizes how important the location is to the success of the business and is abusing its power in order to squeeze something out of you. <br /><br />It is unlikely this landlord will release you from your personal guarantees, but you can and should request some protections such as:
<ul>
<li>A "c<em>ap</em>" on your personal guaranty obligation to six month's or one year's rent</li>
<br />
<li>A "s<em>unset</em>" clause allowing your personal guarantees to lapse if there is no default under the lease for 12 months after you sell the business</li>
<br />
<li>A clause in your sale contract allowing you to step in and cure any defaults of the buyer under the lease before the landlord sues you under your personal guarantees. </li>
</ul>
<p>As for the landlord's onerous requirement of a personal guaranty from the person who sold you this business five years ago, the first thing you should do is have your lawyer review the "<em>assignment and transfer</em>" section of your lease. There's a good chance the landlord's consent to a sale of business "may not be unreasonably withheld or delayed." If that language appears in the lease, you may be able to use it as a weapon to get the landlord to back off, as this requirement is unreasonable and clearly designed to handicap you in selling your business to anyone. <br /><br />Your attorney should also look at the guaranty or "<em>suretyship</em>" laws of your state. In many states, a personal guaranty automatically disappears when a business changes hands unless the guarantor re-affirms it in writing. If the original business owner did not specifically re-affirm his guaranty when you bought the business, he is forever released from his guaranty and any future re-affirmation will be void unless he receives something in return for it (such as money or an equity interest in the business). <br /> <br />Your buyer may be able to get the landlord to back off this requirement by offering an additional one to two month's security deposit, or some other additional collateral for his own personal guaranty (such as a second mortgage on his home, a lien on the business accounts receivable, or a percentage of his monthly gross sales as "<em>additional rent</em>"). <br /><br /> If all else fails, you will have to contact the prior business owner, explain the situation, offer him something (such as a percentage of the money you will receive for selling the business), and offer to "<em>hold him harmless</em>" in the event the landlord ever calls on his personal guaranty. This means that if he is ever sued on his personal guaranty, you will take over the defense of his claim, pay all his fees (including legal fees if he retains his own attorney), and pay any judgment in favor of the landlord so that the prior owner doesn't have to shell out a penny of his own money or put any of his own property at risk. <br /><br /><br /><strong>Cliff Ennico</strong> (crennico@gmail.com) is a syndicated columnist, author and former host of the PBS television series "<em>Money Hunt</em>." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at www.creators.com. COPYRIGHT 2018 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM Permission granted for use on DrLaura.com.</p>
Staff
2018-08-14T18:13:00Z
Does Your Employer Own Everything You Create?
Staff
http://www.DrLaura.com/b/Does-Your-Employer-Own-Everything-You-Create/679606780114453266.html
2018-06-06T18:50:00Z
2018-06-06T18:50:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><br /><em>"I'm a full-time employee (W-2) for a large financial institution. <br /><br />In my spare time, I have been doing research on a new technology product that will have a dramatic impact on the financial industry and would like to write a book about it. I am concerned, however, that if my employer finds out about this project that they will claim ownership of it, or maybe perhaps even fire me. <br /><br />What is the best way, or is there a way, for me to pursue this project? I am not sure I will make much money from this but if I am ever laid off from my current position, I think having a book in print will make it easier for me to obtain consulting assignments in this area which are likely to be quite lucrative."</em><span> <br /><br /></span>Show me a full-time corporate employee these days and I will show you an entrepreneur looking to break free. Everyone needs a "<em>Plan B</em>" for their career plan - the trick is to prepare for that "<em>Plan B</em>" without tipping off your current employer and triggering a premature exit into the entrepreneurial world.<span> <br /><br /></span>Here are the questions I would ask this reader if he or she were a client of mine.<span> <br /><br /></span><strong>Have you signed a "<em>work made for hire</em>" agreement with your employer? </strong> Many employment agreements contain an "<em>assignment of inventions</em>", "<em>assignment of rights</em>" or "<em>work made for hire</em>" clause giving your employer ownership of anything you may create as an employee of the company. If properly drafted, this clause would apply only to things you create that are "<em>directly related</em>" to your employer's business.<span> <br /><br /></span>Since you are a W-2 employee, anything you create may well be owned by your employer anyway, as a matter of law, but since this book project doesn't appear to relate to your employer's current business an agreement might actually help you. <br /><br /><strong>Have you worked on the book during business hours, while on company premises, or using company resources?</strong> Even if the book project doesn't relate to your company's business, working on the book during the time you are required to devote to your employer, or using company resources to write the book, might well be viewed by your employer as a "<em>conflict of interest</em>" or a breach of your duty of loyalty to your employer. <br /><br /><strong>Is the subject of the book directly related to your responsibilities as an executive or is it entirely different (for example, targeting small to midsized businesses)?</strong> It would be difficult to imagine an employer asserting ownership of your book project if it were completely unrelated to your employment - for example, a children's storybook or a collectors' guide for people engaged in a certain hobby. <br /><br />A book that deals directly with the day to day nature of your work, on the other hand, would almost certainly be viewed as the employer's property. No company wants their employees training potential competitors. <br /><br />Falling in the middle is a book which relates to your employment but targets a market your employer doesn't care about - since you work for a large financial institution, a book teaching project management techniques for small businesses or entrepreneurial startups may not be viewed as competitive with your employer' business. Maybe. Perhaps.<span> <br /><br /></span><strong>If your employer were to find out about this project, how upset would they be?</strong> Some employers, believe it or not, actually encourage their employees to write books on the side. For example, large law firms benefit when their partners write legal treatises because they establish the author's (and by implication the firm's) expertise in a particular area of law and may possibly generate referrals from other law firms looking to benefit from that expertise. <span> <br /><br /></span>If you are a lower-level employee of the financial institution, working set hours without much managerial responsibility, your employer is less likely to be concerned about your book project. If you are a senior executive who is expected to devote your entire working time to the company, however, your employer is likelier to take a dim view of this project.<span> <br /><br /></span>Short of getting your employer's written consent to this project (which they are not likely to give even if they aren't overly concerned about it), there are several things you will need to do before the book is published.<span> <br /><br /></span>First, collect all of the agreements you have with your employer and discuss them with an employment lawyer who is well-versed in noncompete clauses and other restrictions on an employee's outside activities. If the lawyer tells you it's too risky to write the book, don't do it.<span> <br /><br /></span>Second, make sure you work on the book only in your spare time, at home, using your own computer. <br /><br /><span> </span>Third, be sure that any stories, examples or case studies you use in your book are sufficiently "<em>sanitized</em>" so that a casual reader would not make the connection to your employer. Ideally, the book should not contain any information or material you have obtained directly from your employer or from your day to day working life, or describe people that resemble or are based on your boss or colleagues. <span> <br /><br /></span>Lastly, consider writing the book under a pseudonym - a false name - and make sure your publisher's press materials do not contain any information that would identify you if your boss were to casually pick up a copy at his local Barnes Noble outlet. <br /><br /><br /><br /><strong>Cliff Ennico</strong> (crennico@gmail.com) is a syndicated columnist, author and former host of the PBS television series "<em>Money Hunt</em>." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at www.creators.com. COPYRIGHT 2018 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM Permission granted for use on DrLaura.com.</p>
Staff
2018-06-06T18:50:00Z
Before You Sell Your Website
Staff
http://www.DrLaura.com/b/Before-You-Sell-Your-Website/-9229077935757566.html
2018-05-23T18:50:00Z
2018-05-23T18:50:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><br /><br />If you have spent years building a successful business on your website and social media pages, sooner or later you will think about selling it. But selling a Web-based business is different - a lot different - from selling a "<em>brick and mortar</em>" business.<span> <br /><br /></span>To illustrate how the process works, I'm going to bring back a childhood memory. Do you remember spending rainy Saturdays putting together jigsaw puzzles with your siblings or friends on the kitchen table? Specifically, do you remember when Mom wanted to set the kitchen table for dinner (yes, families once ate together) and you had to move your finished or almost finished jigsaw puzzle to another location? Remember how you struggled to keep pieces from falling out (or the whole thing collapsing) when you picked up the puzzle and carried it in your hands?<span> <br /><br /></span>That's a lot like selling a website. Unlike many businesses, a website is a "<em>jigsaw puzzle</em>" with pieces of different sizes - content you have created, content you have acquired from other people, maybe software or a SaaS (software-as-a-solution) program, contracts with advertisers, suppliers and developers - and all of the pieces have to be moved to the website's new home. If pieces fall out along the way, the buyer must know about that and be willing to live without them (perhaps with a reduction of the purchase price).<span> <br /><br /></span>If you have a corporation or limited liability company (LLC) for your business, you could just sell the stock in your company to the new owner. But doing so poses tax disadvantages to the buyer, who will insist on buying the "<em>assets</em>" of your business instead. That means you will have to transfer all of the "<em>puzzle pieces</em>" one by one.<span> <br /><br /></span>Here are some steps you need to take to make sure your jigsaw puzzle makes the transition in one piece and you get paid what it's worth.<span> <br /><br /></span><strong>Check Your Domain Name Registration.</strong> You should know where your domain name is registered. If you don't, check with your Web hosting service. Check your domain name registration and make sure your domain name is registered with the same person who will be selling your website. For example, if your corporation or LLC is selling the website assets, the domain name should be registered in your corporation's or LLC's name. <span> <br /></span>Then, check the expiration date on the registration. If the domain name is set to expire within a year, renew it for another year so the buyer doesn't get nervous.<span> <br /><br /></span></p>
<strong>Check Your Web Hosting Agreement.</strong> Next, check your Web hosting agreement and make sure it can be assigned or transferred without the host's consent. That way the hosting services' invoices, tech support e-mails and other correspondence will be directed to the buyer once the sale takes place. <br /><br /><strong>Check for "<em>Blanket Liens</em>" on Your Business Assets. </strong> Do a Uniform Commercial Code (UCC) lien search on your state Secretary of State's website - virtually all states allow this to be done electronically. If the search uncovers a lien on your business assets (if the creditor or "<em>secured party</em>" is a bank, you can be certain that the lien covers all of your assets), that lien will need to be removed of record when you sell the website, which may require you pay off the bank's loan.<br />
<p><strong>Check Your "<em>Terms and Conditions</em>" or "<em>User Agreement</em>".</strong> Hopefully, you have these documents linked to your website, and that you clearly instruct suppliers, customers, content providers, developers and other third parties who interact with your site to review these documents before clicking the "<em>Yes, I Accept</em>" button. Hopefully, also these documents contain two essential clauses:</p>
<ul>
<li> "A<em>ssignment of rights</em>" clause by which third parties assign all of their "<em>intellectual property rights</em>" such as copyright to you when they interact with your website. </li>
<br />
<li>"S<em>uccessors and assigns</em>" clause allowing you to transfer your users' rights to a third party without their consent.</li>
</ul>
<ul>
</ul>
<ul>
</ul>
<span><br /></span>If you do not have legal documents posted on your website, or if your documents do not contain either or both clauses, then you will have to obtain signed "<em>Assignment of Intellectual Property Rights</em>" agreements from each and every person who has contributed content, software or other "<em>stuff</em>" that appears on the website. <span> <br /><br /></span><strong>Make Sure All Licensed Software is Transferable. </strong>If you have licensed software (other than "<em>open source</em>" software) from other software developers, make sure you have a "<em>non-exclusive, transferable</em>" license to use the software and transfer it to others. <br /><br /><span> </span>If you are using "<em>open source</em>" software such as WordPress® for your site, find out which license you signed up for and be prepared to disclose that information to the buyer so they can determine if there will be any impact on their own proprietary software products (if any).<span> <br /><br /></span><strong>Consider an Escrow Arrangement.</strong> Companies such as <a href="https://www.escrow.com/" target="_blank">escrow.com</a> offer "<em>domain name escrow agent</em>" services to website owners (<a href="https://www.escrow.com/domain-name-holding" target="_blank">www.escrow.com/domain-name-holding</a>). Putting your domain name(s) into escrow with such a service will make it much easier to transfer the domain names when the sale takes place. The agent will also insist on escrowing the purchase price so that when the transfer takes place you get your money at the same time.<span> </span><br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author, and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2017 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2018-05-23T18:50:00Z
Dealing With Fear In A Startup Business
Staff
http://www.DrLaura.com/b/Dealing-With-Fear-In-A-Startup-Business/210642777986509204.html
2018-04-10T19:37:00Z
2018-04-10T19:37:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><br /><br /><em>"I was laid off from a corporate job a couple of years ago.</em><br /><br /><em>I tried finding another job but there was nothing out there for someone over the age of 50.</em><br /><br /><em>A few months ago I learned about a local retail business that was for sale. With the help of a business broker, I made an offer and the seller accepted it. We hired lawyers, prepared documentation, and I got a license from the state for one of the product lines the store was carrying.</em><br /><br /><em>We were scheduled to close last week, but I found I just couldn't go through with it. Nothing seemed wrong with this business, and everyone - including my spouse - told me it was a good thing to do.</em><br /><br /><em>But I just froze at the last minute. After years of working in corporations I just couldn't see myself as a shopkeeper. The risks involved just scared the Hell out of me.</em><br /><em> Needless to say, there are a few people mad at me right now. I will forfeit my deposit (10% of the purchase price) and will probably have to pay the broker's fee. I'm also not sure what the next step of my life will be right now. </em><br /><br /><em>What do you think? Am I just being a baby about this? It's easy to tell someone to 'man up' when you don't have to face the consequences.</em>"<br /><br />I don't think this reader is being a "<em>baby,</em>" although I would have counseled him to give in to his fears before putting a significant amount of money at risk as he appears to have done.<br /><br />At the end of the day, any entrepreneurial venture involves a certain amount of risk. No matter how much research and due diligence you do, no matter how much "<em>tire kicking</em>" you do, no matter how many experts you consult (including me), you never have 100% perfect information before you have to make a "<em>go/no go</em>" decision. If I had to pick the biggest difference between working for yourself and working for an employer, this is it.<br /><br />I myself know what this reader went through. About 30 years ago I left a large Wall Street law firm and struck out on my own in a solo practice in the wilds of Connecticut. For almost a decade I was accustomed to wearing thousand-dollar suits, riding a train to work each day, having investment bankers return my phone calls, and seeing deals I was working on featured prominently in the Wall Street Journal every day.<br /><br />I was burned out of working for a large firm, but I was terrified - absolutely terrified - of going off on my own. Would the clients be there? How would I get the word out? How long would it take before I could pay overhead expenses?<br /><br />More importantly, how would my spouse, parents and other family members look at me? How would they adjust to the fact that Cliff was now a small town attorney working out of the house in his bathrobe, no longer a "<em>master of the universe</em>"?<br /><br />As it happened, almost all of my fears were unfounded, and I have enjoyed being on my own these past 25 years more than I ever did working on Wall Street. <br /> <br />I think this reader needs a little help from someone in his age group - perhaps a SCORE counselor (<a href="http://www.score.org" target="_blank">www.score.org</a>) or career coach. The likelihood of someone in his situation finding a corporate job is close to zero, and it doesn't sound like he's willing or able to retire. Simply put, he has to find some way to earn a living.<br /><br />This reader needs to find something to do he is so passionate about that he won't even feel the fear. In my case my desire to work with entrepreneurs and small business owners, giving them the same level of service I gave the Wall Street investment banks at an affordable price and being part of their success, was what got me over my fear of failure. Being a shopkeeper clearly wasn't enough for this reader.<br /><br />A useful trick - if you can psyche yourself into it -- is to turn fear from an obstacle into a strength. There have been times in my career when I intentionally took on a project I wasn't sure I could do, "burning my bridges behind me" so that the only way out was forward. When you commit yourself 100% to something you usually do see solutions to problems that seemed insurmountable when you were contemplating them from a safe distance. But without total immersion in the project you can't see them.<br /> <br />Find a mountain worth climbing, then start putting one hand over the other until you are too far up to turn back safely. Trust me, the handholds will be there when you need them. <br /><br />And if you don't see them right away, the prospect of a 1,000 foot drop will sure as Hell motivate you to find them.<br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author, and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2017 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</p>
Staff
2018-04-10T19:37:00Z
Working During School Hours: How to Find It and Make It Meaningful
Staff
http://www.DrLaura.com/b/Working-During-School-Hours:-How-to-Find-It-and-Make-It-Meaningful/-839612253913984832.html
2018-04-01T17:01:00Z
2018-04-01T17:01:00Z
<p><strong><br />By <span>Emily Marquis</span><br /></strong><a href="http://www.progressionpartner.com" target="_blank">www.progressionpartner.com<br /></a><br /><br /></p>
<div>I left my corporate job after my first child was born. My company was so great and wanted me to feel special, so they threw me a retirement party. At 30, I had no idea what was in store for the future, but retirement felt like the wrong word. I felt a piece of me that I put "on hold" was burning inside again when school-time approached. I knew for me that going back to work full-time with a high responsibility and demanding job was NOT what I wanted. It was important to me to still be around the kids when they were out of school and have the flexibility to attend events during the day if needed. And (last but certainly NOT least) I wanted some time to take care of me! Since then, I have been working part-time during school hours and have not had to sacrifice my family. Trying to balance everything seems daunting, but taking the time to lay down the foundation of what you want will take the pressure off if you're feeling the itch to work again.</div>
<ol>
<li><strong>Find clarity.</strong> Really take some time and write out what you want from a job and how it will look with your family lifestyle during school hours. Do you want to work remotely? How many hours could you feasibly work each week? Do you want set days? What does flexible really mean to you? Be specific and keep asking questions like this until you have written down exactly what you want and don't worry if it takes a week. Don't judge or limit yourself. I truly believe there is a job match out there for everyone and their family.</li>
<br />
<li><strong>Maximize your strengths.</strong> It can be so easy to focus on what you believe is limiting or find it challenging that you have been out of the workforce. Don't go there! Focus on what you DO have. Sit down and write down skills that you are REALLY good at; whether it is from previous jobs, volunteer positions or running the household.</li>
<br />
<li><strong>Align your <a href="https://progressionpartner.com/living-by-core-values/" target="_blank">values</a>. </strong>The time that you have while your kids are in school is very precious. If you don't find stuffing envelopes (although sometimes mundane work is all we need to bring in some bacon), then don't spend your time doing it. Be picky! Ask yourself WHY are you really looking for a job. What type of work would really fulfill you? What type of values or company would you be interested in? Do you need the position to be paid? </li>
<br />
<li><strong>Communicate you.</strong> Now that you have a broad sense of your skills and where you want to go, it's time to <a href="https://progressionpartner.com/product/communicating-resume-cover-letter-linkedin/" target="_blank">articulate it</a>. Find a cool resume builder online (I like Canva and its free!) and build it based on your best strengths and the type of work you want to do. Be sure to put your work as a SAHM on the resume listing the skills you have learned (patience, anyone?). Update your LinkedIn profile with similar language and a nice professional-looking picture.</li>
<br />
<li><strong>Make the match. </strong>It's time to put yourself out there and see what comes. The best job boards are indeed, craigslist (for part-time or gigs), LinkedIn, glassdoor, etc. I LOVE flexjobs.com. It does cost money, but they weed through "<em>scam jobs</em>" for those of looking for part-time work during school hours. For local jobs, it's also great to look in newspapers or for flyers around town. Let friends know you are looking for a part-time work situation. Referrals are the best source. Volunteering in the meantime can always lead to a paying referral or job as well.<br /><br /></li>
</ol>
<div><span>Be sure to be kind to yourself during a job search and practice self-care. It can be rejecting and vulnerable, but remember your strengths and a match will come your way!</span><strong> </strong><em> </em><br /><br /><br /><br /><strong>Emily Marquis</strong> is your Progression Partner; helping women navigate their career from the inside out. Emily empowers women through clarity in values, intention, strengths, and goal setting while incorporating mindful approaches to manage <a href="https://progressionpartner.com/product/using-time-intention-time-management/" target="_blank">time</a> and stress. Emily resides in Colorado with her family and loves spending time outdoors. Are you ready to make a positive change in your life? <a href="https://progressionpartner.com/make-changes-life-take-quiz/" target="_blank">Take my FREE Readiness for Change Quiz and find out</a>! Permission granted for use on DrLaura.com.</div>
<p> </p>
Staff
2018-04-01T17:01:00Z
Business Tips For Artists
Staff
http://www.DrLaura.com/b/Business-Tips-For-Artists/376085676341362142.html
2018-03-19T17:58:00Z
2018-03-19T17:58:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><br /><br />"<em>My husband is a famous artist but isn't really good at the business side of things. I've just retired from a corporate job and want to help him out. <br /><br />What's the best way to set up a business like this one, and what are some of the things I need to know about to help him?</em>"<span> <br /><br /></span>Many of my clients are engaged in "<em>creative businesses</em>" - artists, photographers, authors and musicians who try to make a living from their work.<span> <br /><br /></span>When we think of artists, the word "<em>starving</em>" is somewhere nearby. But it doesn't have to be that way. Some artists - think <a href="https://en.wikipedia.org/wiki/Vincent_van_Gogh" target="_blank">Vincent van Gogh</a> - die penniless and unknown, their genius not appreciated until after their death. But others - think <a href="https://en.wikipedia.org/wiki/Pablo_Picasso" target="_blank">Pablo Picasso</a> - die rich, famous and beloved. Which way would you rather go?<span> <br /><br /></span>There are three steps to building a successful arts business.<span> <br /><br /><br /></span><strong>First, remember it's a business.</strong> <br /><br />Whenever you do anything fun or creative and nobody pays you for it, it's called a "<em>hobby.</em>" Something is a "<em>business</em>" only if someone pays you for what you do. Before you can call something a business and deduct expenses and losses from your taxes, the <a href="http://www.irs.gov/newsroom/hobby-or-business-irs-offers-tips-to-decide" target="_blank">IRS requires you to make money at least three of the previous five years</a>. <br /><span><br /></span>When making art of any kind, it's always a good idea to ask yourself <em>"who is going to buy this?</em>" before committing pen to paper (okay, fingers to keyboard) or brush to canvas. <span> <br /><br /><br /></span><strong>Second, give the customers what they want.</strong> <br /> <a href="https://en.wikipedia.org/wiki/Wolfgang_Amadeus_Mozart" target="_blank"><br />Wolfgang Amadeus Mozart</a> was one of the world's greatest composers. One day he was approached by a local nobleman who wanted some French Horn concertos for his son who had taken a fancy to the instrument. After getting some gold coins in advance, Mozart sat down and wrote four of the best concertos for French Horn ever written.<span> <br /><br /></span>In contrast, Mozart never wrote a concerto for the cello, even though we know (from his surviving correspondence) that he loved the instrument and knew how to play it. Why did Mozart never write a cello concerto? Answer: no rich nobleman with gold ducats in his hand asked him to write one.<span> <br /><br /></span>Please don't get me wrong: I'm not suggesting Mozart was a "<em>hack</em>". There is no bad Mozart, and most of his works are eternally transcendent. But his catalog looks the way it does because of the commissions he received, not what he wanted to create.<span> <br /><br /></span>The secret to success in an arts business is not to create great works and hope that people will buy them (or that posterity will appreciate them). The secret is to seek commissions and, when you get one, put your genius into it and make it a great work of art. Genius will prevail in the long run, but first, the mortgage must be paid.<br /><br /><span> </span>When artists lose touch with their customers or fan base (or can't keep up with changing market demands), decline and eventual financial failure are inevitable. But even artists who maintain their popularity and sales throughout their lifetimes face obscurity if the talent or genius isn't really there. To be a successful artist in any creative field, you need both genius and revenue.<span> <br /><br /><br /></span><strong>Third, remember it's the rights that count, not the artworks themselves. </strong> <br /><br />You create a painting. You sell it at a gallery or exhibition. Repeat. That's one-way artists make money.<span> <br /><br /></span>You create a painting. You make thousands of lithographs and serigraphs of that painting (some signed, some not) and license the rights to the painting's image to people who want to reproduce it. That's a much better, more sustainable way for artists to make money.<span> <br /><br /></span>Successful artistic businesses are not about the works of art themselves. They are all about the intellectual property rights to those works: the copyright (for works of literature or graphic art), the performance and publishing rights (for a work of music), and the licensing rights (to cartoon characters). You can sell the works themselves, but you never part with the "<em>rights</em>" without a fight.<span> <br /><br /></span><a href="https://en.wikipedia.org/wiki/The_Beatles" target="_blank">The Beatles</a> found this out the hard way in the late 1960s when they lost control of the rights to their early (Beatlemania era) hits, which were sold for a little over $2 million in today's money. Those rights were eventually acquired by <a href="https://en.wikipedia.org/wiki/Michael_Jackson" target="_blank">Michael Jackson</a> (yes, that Michael Jackson) in 1985 for $47.5 million. Upon Jackson's death in 2016, Sony bought the rights for $750 million, and Sir Paul McCartney - who wrote or co-wrote almost all of the songs - finally got them back in 2017 for an undisclosed sum after a lengthy court battle. <br /><br /><span> </span>In this reader's case, I would add a fourth step: form a limited liability company (LLC) owned jointly by you and your husband, and make sure all rights are owned by the LLC not your husband individually. That way, you - as the artist's spouse - are guaranteed to control the rights after your husband's death and make sure your family benefits from them going forward.<br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author, and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2017 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</p>
Staff
2018-03-19T17:58:00Z
Does Your Small Business Qualify For The 20% Deduction?
Staff
http://www.DrLaura.com/b/Does-Your-Small-Business-Qualify-For-The-20-Deduction/-666563067549650121.html
2018-02-26T19:55:00Z
2018-02-26T19:55:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><br /><br />If you're like most small business owners, you are scratching your head trying to figure out the new small business tax deduction.<span> <br /><br /></span>The Tax Cuts and Jobs Act of 2017, which went into effect January 1, offers a 20% deduction for "<em>pass-through</em>" entities such as partnerships, limited liability companies and subchapter S corporations. <br /><br />Like all tax benefits, the deduction is designed to accomplish "<em>social engineering</em>" goals as well as raise tax revenue for the Government.<span> <br /><br /></span>Specifically:<span> <br /></span></p>
<ul>
<li>The current Administration wants to bring manufacturing back to the U.S. so such businesses will have the easiest time qualifying for the deduction</li>
<br />
<li>The current Administration wants to encourage small businesses to hire more people as employees, so small businesses who do so will have an easier time qualifying for the deduction than others.</li>
</ul>
<span><br /></span>Here are the five questions you will have to ask to determine if you qualify for the 20% deduction.<span> <br /><br /><br /></span><strong>Step # 1: Is Your Business a Pass-Through for Tax Purposes?</strong><span> <br /><br /></span>The 20% deduction applies only to pass-through entities, which are basically anything (including a sole proprietorship) other than a C corporation. Hey, those guys got a HUGE reduction in their federal income tax rate, so don't feel too sorry for them.<span> <br /><br /><br /></span><strong>Step # 2: Is Your Business Engaged in a "<em>Specified Service Trade or Business</em>"?</strong><span> <br /><br /></span>The 20% deduction applies only to small businesses engaged in manufacturing, retail, nonprofessional services (think restaurants and lawn care), and SOME professional services (such as architecture and engineering). Congress did not want the new deduction to enrich accountants and lawyers (but no fear - the extra fees they will earn from helping clients figure the deduction out will more than make up for not having the deduction).<span> <br /><br /></span>A "<em>Specified Service Trade or Business</em>" is defined as health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, or "<em>any trade or business where the principal asset of such trade or business is the reputation or skill of one or more of its employees</em>". So, if you are a barber or hair stylist, are you a specified service trade or business ineligible for the deduction?<span> <br /><br /></span>The new law doesn't offer any guidance, but here are two "<em>rules of thumb</em>":<span> <br />
<ul>
<li>If your state requires or permits you to form a "<em>professional corporation</em>" or "<em>professional limited liability company</em>" in lieu of a regular corporation or LLC, you probably are engaged in a "specified service trade or business" (ask your lawyer about this).</li>
<br />
<li>If your state requires you to obtain a "<em>professional license</em>" (as opposed to an occupational license) to do whatever you do, you probably are engaged in a "specified service trade or business."</li>
</ul>
</span><span><br /></span><strong>Step # 3: Do You Make Less Than the Minimum Income Thresholds?</strong><span> <br /><br /></span>If you have less than $157,500 in taxable income (for a single taxpayer) or $315,000 in taxable income (for a married taxpayer filing jointly), then you can take the 20% deduction even if you are engaged in a "specified service trade or business". <br /><br />Although if you are a doctor making less than $157,500 a year, I'm wondering how good a doctor you are. <br /><br />If you are a shareholder in an S corporation, your taxable income is based on what is distributed to you each year as an owner/partner in the business, not the amount you take out in salary for the services you render to the corporation.<span> <br /><br /></span><em>Question:</em> if you are slightly over the taxable income threshold, can you increase your deductions to bring your taxable income below the threshold - for example, by leasing a car through your company? You bet you can, as long as the deduction qualifies as an "ordinary and necessary" business deduction (forget the personal masseuse, unless you are a Hollywood actor).<span> <br /><br /></span><br /><strong>Step # 4: Does the Deduction Exceed Certain Caps?</strong><span> <br /></span><br />Whether or not your taxable income exceeds the minimum income thresholds, your deduction cannot exceed 20% of the excess of your taxable income over your "<em>net capital gains</em>". <br /><br />If you are NOT engaged in a "<em>specified service trade or business</em>" AND your taxable income exceeds the minimum income threshold ($157,500 for a single taxpayer, $315,000 for a married taxpayer filing jointly), you can still take the 20% deduction. The bad news is that your deduction is further limited or "<em>capped</em>" to the greater of:<span> <br />
<ul>
<li>50% of all wages paid to W-2 employees of the business</li>
<br />
<li>25% of all wages paid to W-2 employees plus 2.5% of the "<em>unadjusted basis</em>" </li>
</ul>
</span><br />(i.e. before any depreciation deductions) of tangible depreciable property that your company owns as determined at the end of the tax year. <span> <br /><br /><br /></span><strong>Step # 5: Hire a Tax Professional.</strong><span> <br /><br /></span>Got all that? I didn't think so. Unless you are trained in accounting, you probably will need the help of a qualified tax professional to determine whether or not your business qualifies for the 20% deduction. This should really be Step # 1.<br /><br /><span> </span>Pay them well. After all, they don't get the deduction. <br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author, and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2017 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2018-02-26T19:55:00Z
Delegating The Right Way - Part 2
Staff
http://www.DrLaura.com/b/Delegating-The-Right-Way---Part-2/-910801941783871311.html
2018-02-05T18:02:00Z
2018-02-05T18:02:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><br /><br />Once you have made up your mind that it's time to start delegating to other people and growing your business, and decided upon what to delegate, only three questions remain:<br /><br /></p>
<ul>
<li>To whom do you delegate?</li>
</ul>
<ul>
<li>How do you delegate?</li>
</ul>
<ul>
<li>How do you avoid losing control of your business? When delegating you can choose among five potential "<em>delegates.</em>"</li>
</ul>
<span><br /></span><strong>Technology. </strong> More and more these days, "<em>there's an app for that.</em>" On the plus side, technology does not require a salary or benefits, and except for periodic maintenance runs pretty much perfectly all of the time.<span> <br /><br /></span>On the negative side, technology is prone to break down at critical times and become obsolete every couple of years. Using technology as a customer interface gives the impression that you "<em>don't care</em>" about your customers.<span> <br /><br /></span><strong>Partners.</strong> Partners are paid out of a percentage of your business' profits and do not receive a fixed "<em>salary</em>" as such (although they probably will have a monthly "<em>draw</em>" to pay living expenses). Because they have "<em>skin in the game</em>" (if the business doesn't make money, they don't), they are likely to be more committed and will work harder than employees.<span> <br /><br /></span>On the negative side, once someone becomes your partner, they become hard to get rid of if things don't work out - you will have to buy them out at whatever the fair market value of your business is at that time.<span> <br /><br /></span><strong>Employees.</strong> On the plus side, you can tell them what to do, and fire them if they don't do it well, without paying them anything unless you want to. <span> <br /><br /></span>On the negative side, employees are expensive (you have to pay federal and state employment taxes on their wages) and have legal rights. Fire them for the wrong reasons, and you may be staring down a wrongful termination or discrimination lawsuit.<br /><span> </span><strong><br />Independent Contractors.</strong> Like partners, they don't get a fixed salary or benefits, but unlike partners, they can be terminated for any reason or no reason.<span> <br /><br /></span>On the negative side, because they work for multiple clients, they are less loyal to your business than your employees, and you may not be able to get hold of them when you need them. They are also much more likely than employees to try to steal your customers when their relationship is terminated.<span> <br /><br /></span><strong>Your Spouse and Family Members. </strong> Hiring your spouse or children to help with the business carries some excellent tax benefits. You are much more likely to count on their loyalty than non-family employees, and they may be willing to work for less than minimum wage. Hiring your children teaches invaluable lessons in the value of hard work and personal responsibility.<span> <br /><br /></span>Just remember that if you fire your spouse or kids you will still have to see them every day.<span> <br /><br /></span>Having selected your delegates, it's now time to train and motivate them.<span> <br /><br /></span>Training someone to do a particular task usually occurs in three stages: "<em>I do, we do, then you do.</em>" First, you show your delegate how to do it, then the two of you do it together, then you allow the delegate to do it herself under your close supervision until you're 100% sure she has the hang of it.<span> <br /><br /></span>Motivating your delegates is much trickier. Generally, having spent time and money hiring and training your delegates, you want to be sure they hang around. You will need to consider, among other things:<span> <br />
<ul>
<li>Paying them prevailing wages in your community and offering them basic benefits if they are employees.</li>
</ul>
<ul>
<li>Paying competitive hourly or per diem rates, if they are independent contractors (over negotiating their fees ensures that your work will not be given priority).</li>
</ul>
<ul>
<li>Creating a "<em>family</em>" atmosphere in the workplace - study after study shows that employees will tolerate below-average wages if they feel their contribution is valued and that they are part of a "<em>team</em>".</li>
</ul>
<ul>
<li>Treating your independent contractors with kindness and respect.</li>
</ul>
<ul>
<li>Considering your key employees as potential successors when it comes time to retire (perhaps via a "<em>worker's co-operative</em>" or employee stock ownership plan (ESOP)).</li>
</ul>
</span><span> </span><br />Delegating most of your responsibilities to others doesn't let you off the hook completely. The legal doctrine of "<em>respondeat superior</em>" (Latin for "<em>the boss is responsible</em>") means you are legally liable for your employees' mistakes. In the words of a former U.S. president when you delegate you must "<em>trust . . . but verify</em>". <span> </span>Here are four essential "<em>oversight</em>" rules:<span> <br />
<ul>
<li>Be very clear about the limits of your delegates' authority.</li>
</ul>
<ul>
<li>Stay on top of things but don't micromanage.</li>
</ul>
<ul>
<li>Insist that any customer complaint is brought to your attention immediately - when a customer is upset, they should be seen by the boss.</li>
</ul>
<ul>
<li>Never let a delegate get too close to a key client or relationship.</li>
</ul>
</span><span><br /></span>Ultimately, your business should be able to run smoothly and efficiently . . . without you. The sooner you start delegating, the sooner you can think about retirement. <br /><br /> <br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author, and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2017 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.<br />
Staff
2018-02-05T18:02:00Z
Delegating The Right Way - Part 1
Staff
http://www.DrLaura.com/b/Delegating-The-Right-Way---Part-1/189690429842075884.html
2018-01-26T18:03:00Z
2018-01-26T18:03:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><br /><br />One of the hardest things a company founder, entrepreneur, or self-employed professional can do is get out of their own way and allow their businesses to grow without them.<span> <br /><br /></span>And there is one and only one way to do that - delegating to others.<span> </span>No one individual can build a billion-dollar business by themselves. Doing that requires building systems to run the business, and a team to manage the systems. Building a team requires the owners to surrender control and do only those things no one else can do.<span> <br /><br /></span>So why do so many successful business owners have trouble delegating?<span> <br /><br /></span>There are many reasons, such as: </p>
<ul>
<li>They are control freaks who fear others won't do as good a job as they do. </li>
<br />
<li>They truly love doing the task at hand and don't want to give that up (the "<em>craftsman</em>" syndrome). </li>
<br />
<li>They are happy being a "<em>one person band</em>" and don't want to grow their businesses beyond what one person can do. </li>
<br />
<li>They are concerned about additional costs and time getting jobs done. </li>
<br />
<li>They are afraid the people they delegate to will steal customers, trade secrets or other key assets of the business. </li>
<br />
<li>They consider themselves "<em>colleagues</em>," not "<em>managers</em>" or "<em>the boss</em>", and despite hierarchical management structures. </li>
</ul>
<p><br />Let's be frank, some business owners are completely happy staying small and in control doing things themselves. And that's fine . . . until the time comes to sell the business and retire. Few people will want to buy a business if 50% or more of the customers are likely to disappear in the first few months after closing, and that happens when your customers equate you with the business. <br /><br />By spending all your time working "<em>in</em>" your business, even if you do a fantastic job you will find yourself with little or no time to work "<em>on</em>" your business (to understand this distinction, read "<a href="https://www.amazon.com/Myth-Revisited-Small-Businesses-About/dp/0887307280" target="_blank"><em>The E-Myth Revisited</em></a>" by Michael Gerber). <br /><br />Here are some of the things you could spend more time on if you weren't so busy putting out fires: </p>
<ul>
<li>Marketing and promotional strategies to grow the business; </li>
<br />
<li>Developing new products and services </li>
<br />
<li>Identifying and cultivating new "key" customers </li>
<br />
<li>SWOT analysis (assessing your business' Strengths, Weaknesses, Opportunities, Threats); </li>
<br />
<li>"<em>Essential</em>" activities (more on these below) </li>
<br />
<li>(Maybe) Achieving a better work/life balance </li>
</ul>
<p><br />Some business owners, when hiring their first employee or consultant, want to delegate only those aspects of the business that aren't "<em>fun</em>" - the boring, difficult and/or painful stuff. That is not the right way to delegate. Here is the right way. <br /><br />Before you can delegate to anyone, you have to decide what the "<em>essential activities</em>" of your business are. Every business has a few - no more than three to five - essential activities that must be performed perfectly (or extremely well) for the business to function. <br /><br />Usually, the essential activities are the things that give your business an edge over the competition, that is key to driving revenue, and/or help you maintain your relationship with key customers and suppliers. <br /><br />Sometimes they aren't obvious: one of the essential activities of my law practice is getting invoices out to my clients once a month. This has nothing to do with practicing law, of course, but the simple truth is that if I don't get my invoices out each month, my clients delay paying me and I start having accounts receivable issues. <br /><br />If your competitive advantage is turning work around within 24 hours, that's an essential activity. If your business depends on one or two key customers, maintaining those relationships at all costs is an essential activity. You get the idea. <br /><br />Not everything, however, is an essential activity. I have seen countless businesses fail because the owners spent so much time on "<em>nonessential activities</em>" (which they mistakenly thought were essential) that they let the essential activities slide, causing the business to suffer. <br /><br />Drafting your own legal documents, preparing your own tax returns, and attending trade association meetings - while important to your business - are seldom if ever essential. <br /><br />Essential activities are important precisely because you SHOULD NOT delegate them. These are the activities you (and your business partners, if you have any) should perform yourselves because only you are motivated enough to give them the time, energy and painstaking attention they deserve. <br /><br />Once you have identified the essential activities of your business, which of the nonessential activities should you delegate to others? <br /><br />In three words: ALL OF THEM!</p>
<p>That’s right. You and your partners should be devoting 100% of your time to the essential activities of the business and doing the things necessary to grow the business. Virtually all of the day to day activities of the business should be delegated to others – including the stuff you most enjoy doing.</p>
So now that you know what to delegate, how do you delegate, and to whom do you delegate? The answers . . . in next week’s column.<br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author, and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2017 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.<br />
Staff
2018-01-26T18:03:00Z
Royalty Financing: The New, New Thing In Venture Capital
Staff
http://www.DrLaura.com/b/Royalty-Financing:-The-New,-New-Thing-In-Venture-Capital/-559580796899127465.html
2018-01-07T18:03:00Z
2018-01-07T18:03:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><br /><br /></p>
<blockquote>"I have a successful retail business that I want to take online with a killer website and a social media marketing campaign on Facebook and Twitter. <br /> <br />The problem, of course, is money. I need to raise $100,000 to build the website and launch the campaign, but am having trouble finding the money. My business has strong cash flows, but has never officially shown a profit. There aren't a whole lot of tangible assets in this business, and I don't have tons of equity in my home, so most local banks won't even talk to me. And I'm not really willing to give up 50% of my company to a venture capitalist. <br /><br />Are there any other options out there I may have overlooked?" </blockquote>
<br />You sound like a near-perfect candidate for the hottest new development in venture capital: so-called "<em>royalty financing</em>". <br /><br />The concept of royalty financing has been around for a long time. Basically, the idea is this: someone lends you money (in this case, $100,000), but instead of a fixed interest rate, you agree to pay the lender a percentage of your gross sales (not net profits) each month - 2% to 6% is customary. The royalty payments may continue for a specified time period (generally three to five years), or until the lender has received all of their money back plus a 20% return on their investment (in this case, $120,000 in total payout). Once the time period expires or the desired return has been achieved, the loan is considered fully paid and you stop making the royalty payments each month. <br /><br />Most, but not all, royalty financings also involve an "<em>equity kicker</em>" - the lender takes a piece of equity in your company (or, more commonly, a warrant to acquire shares) on top of the royalty payments each month. So if your company grows and becomes profitable, the lender will be entitled to a piece of your "<em>upside</em>" growth. <br /><br />Why is royalty financing gaining traction right now? Basically, in a difficult economy where most entrepreneurial companies are struggling to break even and taking longer to become profitable, lenders to growing businesses have become tired of waiting for their money. Your business is not currently showing a profit, and it will have to do so before legally you can pay any sort of dividend or distribution to your investors. That may take years. Because most royalty financings are structured as loans, they do not run afoul of state laws requiring that dividends be paid only out of "<em>earnings and profits</em>". And your investors see a steady return on their investment each month. <br /><br />There are several advantages to both parties in royalty financing. Because the lender is getting money back every month, it is taking less of a risk than it would be making a traditional equity investment in your company. If your business grows rapidly, so will the lender's monthly royalty payments, meaning they will get their return on investment a Heck of a lot faster than they would be buying stock in your company. Accordingly, a royalty investor may be willing to accept a smaller amount of equity as its "kicker" than it would in a traditional equity investment -- this leaves you the entrepreneur with more equity in your business and less dilution for you and your business partners. <br /><br />Also, the default provisions in royalty loans are usually much less onerous than in traditional bank financings. While most royalty loans require a minimum royalty payment each month, many investors will allow you to pay less than the minimum royalty for two, sometimes even three, consecutive months without putting you into default. Many royalty investors will also insist on converting their loan into straight equity in your company, rather than foreclosing on their loan if you default in your royalty payments.<br /><br /> There are, however, some disadvantages to royalty financing. If your company is not demonstrating strong, steady and predictable cash flows each month, you are not likely to interest an investor in royalty financing. Also, royalty financing deprives you of some much-needed cash each month that you otherwise would pay for rent, payroll, business expenses, not to mention your compensation as the owner of the business. Most investors insist that their royalty payment be made "<em>on top</em>" - i.e. before you pay other expenses - which may leave you cash-strapped at the end of the month if business unexpectedly turns down. <br /><br /> Having said that, though, for businesses with few tangible assets and zero profits, it may be the only type of financing you can get in a difficult market.<span> <br /><br /></span>So where do you find royalty investors? A number of firms are setting up venture funds built entirely around the royalty financing concept. Among those are Arctaris Capital Partners L.P. in Waltham, Massachusetts (<a href="http://www.arctaris.com" target="_blank">www.arctaris.com</a>); Cypress Growth Capital LLC in Dallas, Texas (<a href="http://www.cypressgrowthcapital.com" target="_blank">www.cypressgrowthcapital.com</a>); Revenue Loan LLC in Seattle, Washington (<a href="http://www.revenueloan.com" target="_blank">www.revenueloan.com</a>); and Noventi Ventures in Menlo Park, California (<a href="http://www.noventivc.com" target="_blank">www.noventivc.com</a>).<span> </span>But as royalty financing becomes more popular, even local venture firms will be testing the waters. There's no harm in asking . . . <br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author, and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2017 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.<br />
Staff
2018-01-07T18:03:00Z
3 Steps to Start A Big Career Change
Staff
http://www.DrLaura.com/b/3-Steps-to-Start-A-Big-Career-Change/-708440955538825352.html
2017-12-11T18:03:00Z
2017-12-11T18:03:00Z
<p><strong><br />By Allison Task<br /></strong><a href="http://www.allisontask.com" target="_blank">www.allisontask.com</a><a href="http://www.SucceedingInYourBusiness.com" target="_blank"><br /></a><br /><br />Are you unsatisfied or unhappy with your job? Of course you are, that's why you're reading this article.<br /><br />Lots of people are unhappy about their jobs, or complain about their jobs (just ask their friends and family), but the way to fixing the problem seems elusive. There are lots of reasons for that, but the more important thing is to just get started. <br /><br />Here are the very initial steps to take to get out of that <em>I-hate-my-job quicksand</em>, and on to a better situation.<br /><br /></p>
<blockquote><strong>Step 1: Stop talking about why you hate your job. </strong>Really. Your current job is so...<a href="http://allisontask.com/5-coaching-questions-celebrate-closure/" target="_blank">yesterday's news.</a> You hate it, we know you hate it, and talking about how much you hate it isn't going to help you find a new one. In fact, this reinforces negative thinking patterns in your brain and just makes it even harder to pull out of the quicksand and onto what's next. Find a way to pull out of negative thought patterns, whether that's snapping a rubber band on your wrist (ouch!), or finding another distraction (chew gum), or think about a book or movie you really like. The goal here is to replace your negative thinking with something else.<br /><br /><br /><strong>Step 2: Envision a goal worth going for. </strong>This one is a lot of fun, and will literally help you relax your shoulders, put a smile on your face and flood your brain with positivity - all of which will help energize you and make this next thing a reality. First, pick a date in the future - maybe 1 or 3 years from now, and imagine what could be. Maybe you're working in a vineyard in Sonoma. Maybe you're guiding cycling tours through Italy. Maybe you've got a successfully funded app company in this awesome industrial space downtown. Or maybe it's in a barn. I don't know...this is your vision, not mine. <br /><br /><a href="http://allisontask.com/the-best-question-a-coach-can-ask/" target="_blank">To create a successful vision</a>, think it through and write it out. Use a pen and paper, computer screen or even talk into a voice recorder. Make it real...flush out the details of where you work, what you do, who you're working with. Visualize the office, the product you're working on, etc. Visualize your paycheck, even the name of the company. The more details you can put on it, the more tangible it becomes.<br /><br /><br /><strong>Step 3: Figure out your first next step.</strong> When setting a goal, there are milestones (big achievements - getting that advanced degree, scoring a job offer) and there are inch pebbles (incremental achievements like sending in that job application or applying to a degree program). In order to get to that goal worth going for (see above), you're going to have to move through lots and lots of steps along the way. This is where you start mapping out that plan. If you want to be a well-regarded painter, you'll need to book some shows to showcase your work. And to book those shows, you need art. So first: get your canvas, paints and brushes ready, and commit to making art.<br /><br />If you want to be a teacher, and you're currently working retail, you might want to try volunteering or working with kids to make sure it's good for you. Do you want to pursue a master's degree? Some schools let you bypass this step, for others it's a necessity. Time to start the research and ask teachers you know (most people know a teacher, and if you don't, someone you know knows one) if you can volunteer in their classroom.</blockquote>
<br />There you have it -- three steps that will start you moving toward your next (awesome) job. The first step isn't even a step. When you find yourself in that spiral zone and want to snap out of it (step 1), just pick up that description you wrote of that goal worth going for (step 2). And when you start to get super excited (and nervous, let's be honest) about going for that job you really want, make it bite size. I mean, you can't eat a whole pizza at once, but you can get there, one slice at a time. <br /><br />Start plotting little inch-pebbles to start moving toward that ambitious goal, step by step. And then commit to them, holding yourself accountable or partnering with a friend or coach who can help hold you accountable. Pebble by pebble, you'll move the mountain.<br /><br /><br /><br /><strong><a href="http://www.allisontask.com" target="_blank">Allison Task</a></strong> is a career and life coach who helps clients move from insight to action. She has been coaching for more than 10 years, and sees local clients in her Montclair, NJ office and global clients virtually. She is a speaker, best-selling author and on-camera host. <a href="http://allisontask.com/contact/" target="_blank">Contact Allison</a> for a conversation to establish your goals, or follow her on <a href="https://www.facebook.com/allisontask/" target="_blank">Facebook</a> or <a href="https://twitter.com/allisontask" target="_blank">Twitter</a>. <a href="http://www.allisontask.com" target="_blank">http://www.allisontask.com/ </a> Permission granted for use on DrLaura.com.
<p> </p>
Staff
2017-12-11T18:03:00Z
A Legal Checklist For A Retail Website
Staff
http://www.DrLaura.com/b/A-Legal-Checklist-For-A-Retail-Website/671158801402206440.html
2017-10-27T17:03:00Z
2017-10-27T17:03:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><br /><br /></p>
<blockquote>"<em>I'm planning to set up a fashion accessories website. <br /><br />I think I will be selling mostly on Amazon,eBay and other online platforms, but after watching your YouTube video '<a href="http://www.youtube.com/watch?v=D7eRDI2_pMU" target="_blank">Doing Business on the Internet</a>', I realize it's going to be tough to build a distinctive brand without my own website.<br /><br /> What are some of the legal things I need to think about before my site 'goes live.' Do I really need the 30-page Terms and Conditions document that I see on other websites? Nobody reads those things, in my opinion.</em>"</blockquote>
<br />I've said this before (on YouTube and elsewhere) and I'll say it again - every small business needs a website of its own, especially if it's looking to build a distinctive brand. There are three reasons: <br /><br />
<ul>
<li>Everybody expects you to have one (if your name is 'Suzie's Fantasies' and I don't see you at <a href="http://www.suziesfantasies.com" target="_blank">www.suziesfantasies.com</a>, it's an instant credibility kill).</li>
<br />
<li>There is only one place on the Internet - only one - where you can sell stuff and keep 100% of the profits, and that's your own website. </li>
<br />
<li>When you sell from your own website, you make the rules - when you sell on Amazon, eBay or anywhere else online, you have to follow their rules, and you may not agree with their rules.</li>
</ul>
What is more, all of your pages on social media, eBay, Amazon and elsewhere should have one primary goal - driving traffic to your website. <br /><br />The legal documents you need for a retail website are fairly straightforward: <br /><br /><strong>Copyright Notice. </strong> Okay, this isn't strictly speaking a document, but the federal copyright notice should appear as a footer on ALL your Web pages (not just your homepage. It will look something like this: "<em>© 2017 Clifford R Ennico. All Rights Reserved.</em>" If you have a corporation or limited liability company (LLC), copyright should be in the company's name, not your individual name. <br /><br />The "<em>All Rights Reserved</em>" part of the notice isn't required by law, but it's good to have: translated into layperson's English, it means "<em>unless I've given you permission to use any of this stuff, you don't have permission, so don't do it unless you have a high tolerance for pain.</em>" <br /><br /><strong>Terms and Conditions a/k/a "<em>the User's Agreement</em>".</strong> Yes, you are right, very few people read the legal documents on websites. There is, however, one who does: a lawyer representing someone who wants to sue you and is looking for loopholes they can crawl through to make your life miserable. <br /><br />For that reason, I'm not a fan of "p<em>lain English</em>" legal documents for my client's websites. Plain English is not precise enough to prevent lawsuits - give me old fashioned Legalese any day of the week. Since nobody is reading your agreement anyway, why are you concerned about making it easy to read? These documents exist for one reason only - to protect you against liability. Let your lawyer go crazy here and make the document as tight and ironclad as possible. <br /><br />Be sure the customer "<em>accepts</em>" your agreement terms as part of the checkout process. I really like the feature that requires customers to scroll down to the end of the document before the "<em>I accept</em>" button is enabled. <br /><br /><strong>Returns and Exchanges Policy. </strong>Go to any UPS Store any day of the week and count the number of boxes with merchandise being returned to Amazon, Zappos, and other online retailers. Your customers expect to know exactly when they can (and can't) return merchandise. <br /><br />Many retail websites bury this information in their "<em>Terms and Conditions</em>" document, and I think that's a mistake. The "<em>Returns and Exchanges Policy</em>" should appear as a link at the bottom of each of your Web pages. That way the customer can find the information they need easily, and will help stave off claims that "<em>I didn't know I couldn't return the dress a year later.</em>" <br /><br /><strong>Wholesale Terms. </strong> If you allow other businesses to have wholesale accounts, then your wholesale terms and conditions should also be spelled out in a separate policy document, again with a link at the bottom of each Web page. <br /><br /><strong>Privacy Policy. </strong>Every business website - not just retail - needs a policy saying what you will and won't do with customers' "<em>personally identifiable</em>" information such as e-mail addresses and credit card numbers. <br /><br /><strong>Other Policies. </strong> If you have lots of content on your website, consider a "<em>Copyright and Permissions Policy</em>" letting people know when and how they can use your copyrighted material. If you have blogs or other social media features on your site, you may need a separate "S<em>ocial Media Rules and Regulations</em>" document outlining acceptable behavior. <br /><br />No two websites are exactly alike in their legal needs, so try not to borrow another site's legal documents - tell your lawyer what you're planning to do on your website and have him/her custom tailor the documents you will need. It will be well worth the expense. <br /><br />And if you do decide to "<em>borrow</em>" someone else's documents, please be sure to change the company name before you post them online.<br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author, and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2017 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.<br />
Staff
2017-10-27T17:03:00Z
Tips For Building a 'Marketing Brain'
Staff
http://www.DrLaura.com/b/Tips-For-Building-a-Marketing-Brain/296847853601916274.html
2017-10-06T19:36:00Z
2017-10-06T19:36:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><br /><br /></p>
<em>My guest columnist this week is Randye Spina of Affordable Marketing Solutions in Fairfield, Connecticut. The following is excerpted with permission from "Tips for Manifesting a Marketing Mindset", available on her website at <a href="http://myaffordablemarketing.com/" target="_blank">www.myaffordablemarketing.com</a>). </em><br /><br /><strong>Prioritize Marketing. </strong> Of all the business functions you're responsible for, Marketing is the most important. Marketing is the only revenue-producing business function there is: everything else is about cutting costs. Be proactive and consistent: when you stop Marketing, sooner or later your phone stops ringing. <br /> <br />Begin with your website. It is your "<em>home base</em>" and the only place online where you own and can control your image, brand and content. From there any number of traditional and digital Marketing strategies are available. Which ones? The ones that work in your industry. Study up, and watch what your successful competitors are doing and find a way to STAND APART from them with benefits they can't offer. <br /> <br />Don't think you have to discount your products or services. There was a dry cleaner in my old neighborhood that was open on Sundays. This was a tremendous competitive advantage for the owner who once told me that she was there on Sundays doing the books anyway, so she started opening the store and found it became very popular. I know it was with me! <br /><br />
<ul>
<li><strong>Work ON Your Business, Not Just IN It.</strong> At least 20% of your time should be spent on Marketing. Marketing is an investment, not an expense. Understand the rhythms of your industry and the needs of your customers so that you can plan for success. Is your customer list up to date? Is your email signature set up correctly? If you're doing social media, is it regularly scheduled? Are you thinking of new products or services you can offer? Is your website's copyright footer the current year? Is it clear that you're on top of your business? </li>
<br />
<li><strong>Use a Marketing Calendar.</strong> Once you understand your seasonal cycle, implement a Marketing calendar tool so you start thinking about Christmas/Hanukkah sales well before December. It's easy to create reminders in advance using Microsoft Office's calendar. <br /><br />Plan your Marketing three months ahead. If you're a tax accountant or landscaper, start promoting your services in January. Send emails early to existing/past customers, and launch a campaign to attract new customers. </li>
<br /><br />
<li><strong>Be Your Own Customer.</strong> Change your perspective. Have you dialed your own business phone? Purchased from your own website? Sent yourself a package? Tested all the forms and links on your website? Signed up for your own email list? Googled your business? Googled your name? <br /><br />I recently had a call from a client who by accident found out his order form didn't work: his customer called to check up on their order which uncovered the problem. Upon digging further, it turned out that a link to his website contact form had broken as well. He had had dozens of inquiries from his website and didn't know. </li>
<br /><br />
<li><strong>Always Gather Contact Info.</strong> Tether your customers to you from the very beginning. Use an email service provider and link it to your site to capture prospect information. Consider creating a "snail mail" list and sending special promotions, holiday and/or birthday cards to those you do business with: constant reminders create repeat customers. </li>
<br /><br />
<li><strong>Keep a "<em>Sample File</em>". </strong> Don't throw out your junk mail without looking at it first Start a '<em>Sample</em>' file folder and drop in postcards, menus and other mailings you like. Create a 'Sample' email folder in Microsoft Outlook and save email promotions you like. Why invent from scratch? As they say, "imitation is the sincerest form of flattery." </li>
<br /><br />
<li><strong>Understand Basic SEO.</strong> Labeling your digital content with appropriate language amplifies your messaging to the audience that is looking for your business. People who search for "<em>lawyers</em>" are not always the same people who search for "<em>attorneys</em>". Once you know the right keywords, use them across all your online Marketing channels. By consistently using the same words and phrases you increase your SEO rankings. </li>
<br /><br />
<li><strong>Content is Everything.</strong> Write solid, well-edited pieces to publish online and trumpet your expertise so leads come to you. Repurposing your own content is fast and easy. Use everything you write on your social media, blog, newsletters and more. </li>
<br /> <br />
<li><strong>Business Cards.</strong> Stash them everywhere! I have some in the glove compartment of my car, every briefcase, and purse. Don't forget the back of your card: this is a billboard opportunity to advertise a new product or service or give a coupon to prospective new customers. </li>
<br /><br />
<li><strong>Front Line Employees.</strong> Your staff who deal directly with customers have a bigger impact on brand perception that any amount of money you spend on Marketing. They can make or break a customer relationship, especially in retail. Rude service by unmotivated, sloppy or uncaring employees drives people away, so train the Hell out of anyone who represents your business to the public. If you see them as unimportant, your customers will look at them - and you -- the same way. </li>
</ul>
<br /><br /><br /><strong>Cliff Ennico</strong><span> (</span><a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a><span>) is a syndicated columnist, </span><span>author</span><span>, and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at </span><a href="http://www.creators.com/">www.creators.com</a><span>. COPYRIGHT 2017 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</span><br />
Staff
2017-10-06T19:36:00Z
Buying A Business That Has An EBay, Amazon, Or Etsy Account
Staff
http://www.DrLaura.com/b/Buying-A-Business-That-Has-An-EBay,-Amazon,-Or-Etsy-Account/446008333593798530.html
2017-09-22T19:30:00Z
2017-09-22T19:30:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><br /><br /></p>
It's no secret that selling merchandise on eBay, Amazon, Etsy and other online e-commerce platforms is big business:<span> <br /><br />
<ul>
<li>The number of people worldwide making a full- or part-time income on eBay has been estimated at between 8 and 12 million</li>
<br />
<li>More than 100,000 third-party sellers on Amazon are estimated to have made more than $100,000 in gross sales on the site last year</li>
<br />
<li>Roughly 18% of Etsy's 1 million sellers (that's 180,000 people, folks) consider themselves full-time sellers.</li>
</ul>
</span>That's a lot of small businesses that are growing very fast.<span> <br /><br /></span>What happens when a small business grows and becomes successful? Why, the owners want to sell, of course! And that's just as true of Web-based businesses as any others.<br /><br /><span> </span>There's just one problem.<span> <br /><br /></span>Under the rules sellers must follow on each of these sites, eBay, Amazon and Etsy accounts (let's call them "<em>E-A-E</em>" accounts for simplicity's sake) cannot be sold without the site's consent. And almost always, as a condition to getting that consent, the seller's feedback rating will be reset at "zero", as if the seller had never existed. The buyer has to rebuild the business' reputation and credibility on the site from scratch.<span> <br /><br /></span>In theory, this makes sense: just because one seller consistently gives his buyers great experiences doesn't mean his successor will. But since virtually all of the "<em>goodwill</em>" of an E-A-E selling business lies in its positive feedback, denying that information to a buyer renders the business essentially worthless.<span> <br /><br /></span>"<em>If Amazon, especially, learns that you have bought an existing seller's account, or if you ask them for permission to transfer the account, you will lose that seller's reviews, rankings and 'buy box' status virtually overnight,</em>" says C.J. Rosenbaum, a lawyer in New York who represents online sellers when their accounts are suspended (<a href="https://www.amazonsellerslawyer.com/" target="_blank">www.amazonsellerslawyer.com</a>). <span> <br /><br /></span>As a result, buyers of Web-based companies that depend on E-A-E accounts for their revenue often rely on a very tricky maneuver:<span><br /><br />
<ul>
<li>First, the seller (if it hasn't already done so) sets up a corporation or limited liability company (LLC) for the business;</li>
<br />
<li>Then, the buyer buys the "stock" of the seller's corporation or the "membership interests" in the seller's LLC;</li>
<br />
<li>Then, the buyer adds his name as an <em>"additional signatory</em>" on each of the seller's bank accounts that are tied to the E-A-E accounts and any related PayPal accounts; and,</li>
<br />
<li>After a "<em>decent interval</em>" of time has passed, the seller withdraws his name as a signatory on the bank accounts (making these changes all at once, says Rosenbaum, can be a "<em>red flag"</em> to E-A-E that an unpermitted transfer has occurred).</li>
</ul>
</span><span><br /></span>While the same company owns the E-A-E account both before and after the sale, Rosenbaum says that even this maneuver probably violates E-A-E rules in most cases. Even if it successfully avoids a suspension or termination of the E-A-E account, this way of buying a business has many other drawbacks.<span> <br /><br /></span>First, the seller and buyer have to co-operate: since both the seller's and buyer's name will appear on the business bank accounts for a while, the seller may be tempted to make withdrawals without the buyer's knowledge. "<em>A lot of sellers also are uncomfortable having their name tied to the account because they're afraid of what the buyer will do,</em>" says Rosenbaum, "<em>but they also want to sell. If the bank account is in the name of a seller's relative rather than him personally, that relative will absolutely want their name off the account as soon as is humanly possible.</em>"<span> <br /><br /></span>Second, according to Rosenbaum, buying the stock of a corporation or LLC means that you will have to clean up all of the seller's mistakes, problems, and liabilities, such as:<span> <br /><br />
<ul>
<li>A sale made by the seller that is rejected by the customer after the buyer takes over, or leads to a customer complaint</li>
<br />
<li>A sale put on a customer's credit card that the customer later "<em>charges back</em>" after the buyer takes over</li>
<br />
<li>A sale of counterfeit goods, prohibited brands or goods otherwise violating E-A-E rules that took place when the seller was in charge. </li>
</ul>
</span><span><br /></span>Lastly, many E-A-E sellers have multiple accounts, which in itself can violate E-A-E rules. "<em>If a seller has multiple accounts and sells only one to a buyer, and Amazon finds out about the multiple accounts, Amazon will shut down all accounts including the one the buyer bought,</em>" says Rosenbaum. <span> <br /><br /></span>While it's commonplace in business sales for the seller and buyer to "<em>indemnify</em>" each other for these problems, the indemnity is only as good as the credit behind it. "<em>If something bad happens you will have to sue the other buyer, often in a far away jurisdiction, for a relatively small amount of money,</em>" says Rosenbaum. "<em>It just won't happen.</em>"<span> <br /><br /></span>Unless eBay, Amazon, Etsy and the rest change the rules to allow continuation of a seller's feedback when the business is sold (perhaps with appropriate disclosure to customers for a year or two after the sale), this will be a major problem that may severely inhibit the growth of online commerce. <br /><br /><br /><br /><strong>Cliff Ennico</strong><span> (</span><a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a><span>) is a syndicated columnist, </span><span>author</span><span>, and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at </span><a href="http://www.creators.com/">www.creators.com</a><span>. COPYRIGHT 2017 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</span><br />
Staff
2017-09-22T19:30:00Z
The Right Way To Value A Small Business (Part 2 of 2)
Staff
http://www.DrLaura.com/b/The-Right-Way-To-Value-A-Small-Business-Part-2-of-2/-369433388142503566.html
2017-09-15T19:16:00Z
2017-09-15T19:16:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><br /><br /></p>
There is no perfect or right way to value a small business. There are, however, lots of wrong ways to do it.<br /><br />When a partner or owner dies, becomes disabled or leaves the business, the business must be valued so that a fair price for his or her ownership interest can be determined. But a process that takes too long to value the company is fair neither to the company nor the departing owner. Balancing the departing owner's desire for a fair price with the company's desire for a quick resolution is often difficult and frequently impossible.<br /><br />If your business is not scalable — its growth is fairly predictable, as is the case with most retail or service businesses — the solution is easy. First, choose the right performance metric. For most such businesses, this will be pretax earnings, or EBIT (earnings before income taxes). But for some businesses, it might be gross sales or net revenue (gross sales minus discounts and returns). Then, find out what that metric was for the last three to five years and take an average (so you can even out good and bad years). Then, multiply that average by two or three (talk to local accountants to get a sense of the multiple for which most local businesses sell). And voila — you are done.<br /><br />But if your business is scalable — for example, a high-tech startup that could experience exponential growth during its early years — using any sort of fixed formula to value the business is probably not fair, realistic or desirable. Someone might be willing to pay hundreds of times a business' EBIT if they sense the potential for huge exponential growth down the road.<br /><br />Here are some good rules of thumb that will help you when drafting valuation clauses.<br /><br /><strong>Leave it to the Experts.</strong> Business appraisers are professionals who look not only at the numbers for a particular business but also at the prices for which other similar businesses have sold. They should be the ones to decide the business's value.<br /><br /><strong>The simplest solution is to name an appraiser in the document or require the appraisal to be done by an appraiser selected by the board of directors in its sole discretion. </strong>Doing so, however, causes the appraiser to view the company as his or her client, which may in some cases lead to departing owners receiving less than fair value for their ownership interests.<br /><br /><strong>An alternative is to have each side (the company and the departing owner) choose an appraiser. </strong>Each appraiser values the business and then meets with the counterpart to determine the value. If they can't agree on the value, then either the company or the two appraisers choose a third appraiser to determine the value. While eminently fair to both the company and the departing owner, this process can be very costly to the company and drag on for months, or even years, which is fair to neither side.<br /><br /><strong>Bake Deadlines Into the Document. </strong>To make sure the appraisal process gets done in a reasonable amount of time, build deadlines into the process. For example, a company and the departing owner would be required to appoint an appraiser within 30 days of the owner's departure; each appraiser would have to value the company within 60 days of being appointed; the two appraisers would have to either value the company or request a third appraiser within 30 days. If all goes smoothly, the valuation would take place within 120 days of the owner's departure.<br /><br /><strong>Make It Really Hurt If the Job Doesn't Get Done. </strong>What happens if the appraisers don't meet the deadline? There are two possible solutions: Nothing will happen, in which case the departing owner continues to be an owner of the company for legal and tax purposes; or something drastic will happen, which penalizes all parties for the delay.<br /><br /><strong>Consider including a time-bomb provision in the appraisal clause requiring the dissolution and liquidation of the company if a deadline is not met. </strong>If anyone is tempted to drag their feet during the appraisal process, stipulating that unreasonable delay will kill the goose that lays the golden eggs for all parties might give that person an incentive to move the process along and get the job done.<br /><br /><strong>Let the Survivors Decide When Payment Is Made. </strong>Murphy's law (anything that can go wrong will go wrong) dictates that when business owners die, become disabled or quit the business, they will do so at a time when the company is strapped for cash.<br /><br />However you decide to resolve the valuation question, be sure to include language enabling the surviving owners to decide when, over what period of time and at what interest rate the departing owner will receive payment for his or her shares (for example, monthly or quarterly payments over a period of five to 10 years).<br /><br /><br /><br /><strong>Cliff Ennico</strong><span> (</span><a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a><span>) is a syndicated columnist, </span><span>author</span><span>, and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at </span><a href="http://www.creators.com/">www.creators.com</a><span>. COPYRIGHT 2017 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</span><br />
Staff
2017-09-15T19:16:00Z
The Right Way To Value A Small Business (Part 1 of 2)
Staff
http://www.DrLaura.com/b/The-Right-Way-To-Value-A-Small-Business-Part-1-of-2/661430552516130126.html
2017-09-07T18:06:00Z
2017-09-07T18:06:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><br /><br /></p>
<blockquote>"<em>I have a corporation which I own 50/50 with my sister. <br /><br />We get along great, but our accountant is putting pressure on us to put together a shareholders' agreement so we know what to do if one of us dies, becomes disabled, or gets divorced. Our business is a high technology startup, if that makes a difference. <br /><br />Where we're stuck is that we don't know how to put a value on a business such as ours. Can you help us figure out the right way to do that?</em>"</blockquote>
<br />If there's one thing I've learned in 37 years of working with small businesses, it's that there is no perfect way to put a value on one.<span> <br /><br /></span>When valuing any kind of business, there's a big trade-off between doing what's fair for all parties and coming up with a solution that will work in practice. The more you want to be fair to everybody, the less likely it is you will come up with a solution that works, and vice versa.<span> <br /><br /></span>Let me explain.<span> <br /><br /></span>In the old days, it was simple: most small businesses were brick-and-mortar retail and service businesses that were not "<em>scalable</em>," meaning that they grew slowly and predictably over time. Such a business is relatively easy to value: you simply agree on the most appropriate performance metric (most commonly "<em>earnings before income taxes</em>" or EBIT), then apply a multiple based on what other similar local businesses have sold for in the recent past (usually a number between one and three) and - voila! - you have a fair market value for that business.<span> <br /><br /></span>Technology startups, however, are anything BUT scalable. Using any kind of fixed formula such as EBIT or gross sales to measure the performance of such a business is not only a waste of time but almost always ends up being unfair to someone because it fails to take into account the future value of the company's technology. A couple of years ago Facebook(r) spent $19.6 billion to acquire mobile smartphone app maker What's App® - a company that at the time was losing hundreds of millions of dollars and had only $10 - $15 million in revenue (<a href="http://www.investopedia.com/articles/investing/032515/whatsapp-best-facebook-purchase-ever.asp" target="_blank">www.investopedia.com/articles/investing/032515/whatsapp-best-facebook-purchase-ever.asp</a>). What sort of performance metric do you think they used to value that business?<span> <br /><br /></span>The only proper way to value a technology startup is to "kick the can down the road" by requiring an independent valuation of the business at the time something happens that requires a valuation (one of the founders dies, for example, or wants to quit the business for a corporate day job).<span> <br /><br /></span>Many stockholders' agreements I've seen for technology companies say that if such a "triggering event" occurs, the company will be valued by an independent appraiser selected by the board of directors by unanimous vote (excluding the person who will benefit from the valuation if he or she is a director).<span> <br /><br /></span>The problem with that approach is that the person performing the valuation will be biased in favor of the company, and the person whose stock is being valued may end up with a "lowball" valuation that cheats them out of the future value of their ownership stake.<br /><br /><span> </span>Because of this problem, many stockholders' agreements contain what I call a "Three Stooges" appraisal provision: if a "triggering event" occurs, the company selects an appraiser, the person whose stock is being valued selects an appraiser, the two appraisers meet and compare notes - if they agree then that's the valuation, but if they don't agree the two appraisers select a third appraiser who mediates between the two and decides the company's value.<span> <br /><br /></span>Perfectly fair and balanced, right? Right - there's no way anyone will be cheated using a "<em>Three Stooges</em>" appraisal clause. The problem is that this clause does not work well in practice.<span> <br /><br /></span>Let's say a shareholder dies. The shareholder's next of kin (usually but not always a widow or widower) will be so overcome with grief it will be several months before they can function at all, much less select an appraiser for their late spouse's stock. Once they are able to do so, and the company selects their appraiser, it is usually Tax Season (many if not most appraisers are also accountants), so they can't get anything done until that is over. Once the appraisers can focus on the valuation and meet to discuss the results, they decide they don't like each other and can't agree on the time of day much less who the "mediating" third appraiser will be. They start throwing custard pies at each other, just like in a <a href="http://www.imdb.com/title/tt0383010/" target="_blank">Three Stooges</a> movie (hence the nickname). <br /><br />Meanwhile, while all this is going on the clock is ticking, and months if not years pass by without the valuation taking place. The company must continue to recognize the deceased shareholder for legal and tax purposes, and investors will be reluctant to put money into the company because the founders don't seem to know what they are doing. Nyuk, nyuk. <br /><br />So what is the best way to value a fast-growing technology company? The answer . . . next week.<br /><br /><br /><br /><strong>Cliff Ennico</strong><span> (</span><a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a><span>) is a syndicated columnist, </span><span>author</span><span>, and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at </span><a href="http://www.creators.com/">www.creators.com</a><span>. COPYRIGHT 2017 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</span><br />
Staff
2017-09-07T18:06:00Z
Surviving Your Next Networking Group Meeting
Staff
http://www.DrLaura.com/b/Surviving-Your-Next-Networking-Group-Meeting/-625127870561852960.html
2017-08-24T23:06:00Z
2017-08-24T23:06:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><br /><br />I don't know about you, but I find most networking groups to be exceedingly boring, nonproductive and in some cases cringe-inducing. <br /><br />I'm not generally a fan of networking groups. I'm not sure people get much new business out of them. Still, networking groups have their upside. They can be great places to find people who, while not competing with you, serve the same customers that you do. If you sell high-end jewelry, your local Lexus dealer can give you tons of solid advice on selling to one-percenters. <br /><br />They can also be a source of moral support when times are tough and you are beginning to succumb to the "<em>heebie jeebies</em>" about your business and its future. Knowing that other people in your community are in the same boat can help you get a perspective on your problems, or at least get a grip on your emotions. <br /><br />But most people who belong to networking groups have a lot to learn about networking effectively. I frequently speak to networking groups when promoting my latest book or video product. Inevitably, when I walk into a meeting, I am confronted by a slobbering idiot (more often than not, someone who sells life insurance) who presses his business card into my hand and starts yammering about all the stuff he sells. <br /><br />If you are a member of a networking group, or a member invites you to attend as a guest, here are five tips: <br /><br />1. <strong>Manage Up, Not Down. </strong>When you are introduced to someone, ask yourself "<em>does this person have more to offer me than I have to offer him?</em>" In every networking group, there are two types of people: people who can help you get where you want to go, and people who want you to help them get where they want to go. You want to spend as much time as possible with the first group of people. <br /><br /><br />2.<strong> If Someone Wants to Give You Their Business Card, Make Them Work.</strong> So how do I deal with the slobbering life insurance person who wants to give me his card before knowing anything about me? Easy. I simply refuse to accept his card. I say something like "<em>look, I know business cards are cheap, but I really don't want yours until I know for sure you can do something to help me out, or I can do something to help you out. Let's get to know each other a little bit. If I like what I hear, I will be happy to take your card.</em>" <br /><br />Most people will be stunned when you take this approach - you have to be careful not to appear condescending or snobbish -- but the right ones will understand that you take these meetings very seriously and will respond in kind. If they just stand there and keep slobbering, move on. <br /><br /><br />3.<strong> Ask People About Their Competitive Advantage. </strong> When someone at a networking group tells me what they do for a living, I frequently interrupt them by saying something like "oh<em>, you sell life insurance? I know lots of life insurance people, as you can imagine. But I'm always looking for a perfect fit for my clients. What do you do better than anyone else in your profession? What type of client falls in your 'sweet spot'? What types of people or situations should I be referring to you that I shouldn't be referring to anyone else?</em>" <br /><br /><br />4. S<strong>chmooze with the Speaker, But Do It Right.</strong> Frequently, the speaker is the most influential person in the room, and everyone rushes the podium after the speaker finishes his talk. <br /><br />I hate to break this to you, but if when meeting the speaker you grab his hand in a death grip, look him straight in the eye, exclaim "<em>great information!</em>", and then proceed to bore him with whatever it is you do for a living, the speaker will not be impressed. He will think you're an idiot who didn't listen to a single word he said. <br /><br />To impress a speaker, ask a question showing the speaker that you actually listened to what he said, or tell a story showing how something he said relates to your business. Begin by saying "<em>you know, Cliff, what you said about X is really true in my business; you really hit home there.</em>" Speakers love to be stroked, but they hate to have their rear-ends kissed. Know the difference. <br /><br /> <br />5. <strong>Be Memorable.</strong> When I speak at a meeting, I come home with dozens of business cards. I put them on my desk, where they stay for days or sometimes weeks while I catch up on other work. At some point, I go through the deck of cards and input some - a select few - into my Outlook Contacts folder. If I can't remember who you were, your card won't make the cut. <br /><br />If you do nothing else at networking meetings, be sure to tell someone a story, or behave in a certain (positive) way that will stick in their heads. <br /><br /><br /><br /><strong style="font-size: 12px;">Cliff Ennico</strong><span style="font-size: 12px;"> (</span><a style="font-size: 12px;" href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a><span style="font-size: 12px;">) is a syndicated columnist, </span>author<span style="font-size: 12px;">, and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at </span><a style="font-size: 12px;" href="http://www.creators.com/">www.creators.com</a><span style="font-size: 12px;">. COPYRIGHT 2017 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</span></p>
Staff
2017-08-24T23:06:00Z
Cutting Costs The Right Way
Staff
http://www.DrLaura.com/b/Cutting-Costs-The-Right-Way/-5959023568148789.html
2017-08-03T18:06:00Z
2017-08-03T18:06:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com</a><br /><br /></p>
<blockquote>"<em>We have a retail business (both brick-and-mortar and Internet). We have tried every marketing trick in the book but we can't seem to push our sales up beyond a certain point due to too much competition. We need to grow our business but are not sure how to do it in such a tough climate. Any suggestions?</em>"</blockquote>
<span> <br /></span>There are only two ways to grow a small business: either you get more revenue from your customers (by raising prices or increasing sales), or cut your operating costs in an effort to generate higher profits from the same (or shrinking) revenue base. Hopefully, you can do both, but in a highly competitive market, it may not be easy to raise revenue without losing business. In such a market, it's the lowest cost provider who survives . . . and wins.<span> <br /><br /></span>Sooner or later, every small business has to tighten its belt. Here's how to do it.<span> <br /><br />
<ul>
<li><em><strong><span style="text-decoration: underline;">First, understand your costs.</span> </strong></em> How much money does your business spend each day, each week, each month? Do expenses fluctuate at different times of the year?</li>
</ul>
</span>If you do your bookkeeping only at tax time, you will have difficulty cutting costs. You need to monitor your business' spending on a daily, weekly or monthly basis.<span> <br /><br /></span>Look at your bank account, credit card and PayPal statements with a highly critical eye. Where is your money going? <span> <br /><br /></span>You would be amazed what doing this will teach you. When my software expenses looked suspiciously high last year, I looked at each one of my credit card statements and found out I paid $500 for software I stopped using years ago. These were automatic renewal fees that were being charged to my cards each year without notification from the software publisher.<span> <br /><br /></span>It took a few phone calls but I was able to stop the software subscriptions from being renewed each year. <span> <br /><br /></span>Look at your expenses every week and when you see something that doesn't make sense, start asking questions.<span> <br /><br />
<ul>
<li><em><span style="text-decoration: underline;"><strong>Second, identify your "essential" expenses.</strong></span></em><strong> </strong> These are things you MUST spend money on if your business is to be successful.</li>
</ul>
</span>If 20 percent or more of your revenue comes from your eBay account, paying the eBay fees is an essential expense. Now, maybe you can cut those expenses somewhat (by taking advantage of the discounts and special offers eBay frequently offers its preferred sellers), but you have to pay them.<span> <br /><br /></span>Sometimes your essential expenses aren't obvious. Many small businesses view marketing as a luxury item, but if you cut back on your marketing sooner or later the phone stops ringing. In a tough economy, it may actually make sense to increase spending on marketing to increase your brand recognition and (maybe) improve sales. <br /><br />If you find you have lots of essential expenses you are probably not being tough enough with your review. In my experience most businesses have only a few essential expenses each month - the rest always have some fat that can be trimmed. Imagine what would happen if you cut a particular expense to zero. If you don't know, it's probably not essential. <span> <br /><br />
<ul>
<li><em><strong><span style="text-decoration: underline;">Third, eliminate "nonessential" expenses ruthlessly.</span> </strong></em> "<em>Ruthless</em>" is a nasty word, but it's the best one to describe what you have to do here. Any expense that is not "essential" to the operation of your business, eliminate it "<em>with extreme prejudice</em>" (Joseph Conrad, "<em><a href="https://en.wikipedia.org/wiki/Heart_of_Darkness" target="_blank">Heart of Darkness</a></em>").</li>
</ul>
</span>Why are you renting space for a brick-and-mortar retail store in the age of the Internet? Unless you have a killer location (high visibility, lots of foot traffic), consider getting out of your lease early and working out of a home office. Your physical inventory can go in a cheap storage unit (just make sure it's air and water tight). Or maybe you should let Amazon handle your inventory and fulfillment through their highly popular FBA (<a href="https://services.amazon.com/fulfillment-by-amazon/benefits.html" target="_blank">Fulfillment By Amazon</a>) program.<span> <br /><br /></span>Do you really need so many employees? Is each one adding value to your business? Can you use family members who will work for less (especially minor children, for whom there are tax advantages)? Can you do some of the "<em>jerk work</em>" yourself without taking your attention away from the big picture? <span> <br /><br />
<ul>
<li><em><strong><span style="text-decoration: underline;">Lastly, make sure you don't cut costs too much.</span></strong></em> When you cut your costs too much, the quality of your product or service inevitably suffers. If you start making machine parts out of cheaper plastic rather than metal, they break down at lower temperatures. </li>
</ul>
</span>It's the same in a service business like mine. If I spread myself thin by taking on too much work, I risk exhausting myself, slowing down my response time, making mistakes and getting sued for malpractice. Control your costs by all means, but make sure your reputation doesn't suffer by being too cheap. <br /><br />Sometimes you just gotta spend money to make money. Or, as we used to say back in my Wall Street days, "<em>you can't eat like a bird if your goal is to [excrete] like an elephant.</em>" <br /><strong><br /><br /><br /></strong><strong style="font-size: 12px;">Cliff Ennico</strong><span style="font-size: 12px;"> (</span><a style="font-size: 12px;" href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a><span style="font-size: 12px;">) is a syndicated columnist, </span>author<span style="font-size: 12px;">, and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at </span><a style="font-size: 12px;" href="http://www.creators.com/">www.creators.com</a><span style="font-size: 12px;">. COPYRIGHT 2017 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</span>
Staff
2017-08-03T18:06:00Z
Before You Start Your Business Opportunity (Part 2 of 2)
Staff
http://www.DrLaura.com/b/Before-You-Start-Your-Business-Opportunity--Part-2-of-2/-579452372482966796.html
2017-07-19T18:06:00Z
2017-07-19T18:06:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com</a><br /><br /></p>
You have built a successful business, and have set up a training program to teach people how to start and run that business successfully. They don't have to use your name, nor will they be given assigned territories. But they will have to pay a sizeable upfront fee for the training program, and pay additional amounts for annual "<em>refresher</em>" courses, one-on-one coaching or consulting, and other services.<span> <br /><br /></span>Congratulations, you will not be considered a franchise for legal purposes.<span> <br /><br /></span>But condolences, you may have a business opportunity on your hands, and you will have to comply with a crazy quilt of regulations in 25 states.<span> <br /><br /></span>Last week's column focused on how to figure out when a business training program becomes a business opportunity. Once you know it is a business opportunity, here's what you have to do.<span> <br /><br /></span>First, you need to find out if you must give each participant in your program the "disclosure statement" required by the FTC. Check out the following Web page on the Federal Trade Commission's website: <a href="https://www.ftc.gov/tips-advice/business-center/guidance/selling-work-home-or-other-business-opportunity-revised-rule" target="_blank">www.ftc.gov/tips-advice/business-center/guidance/selling-work-home-or-other-business-opportunity-revised-rule</a>. <span> <br /><br /></span>The FTC Business Opportunity Rule (16 C.F.R. Part 437) dealing with "business opportunity ventures" regulates only one type of business opportunity - the sale of vending machines or rack displays if you help purchasers find customers or locations. The Rule defines a business opportunity venture as: <br />
<ul>
<li>The seller sells goods or services which are supplied by the seller or a person affiliated with the seller. </li>
<br />
<li>The seller assists the buyer in any way with respect to securing accounts for the buyer or servicing accounts for the buyer or securing locations or rates for vending machines or rack displays or providing the services of a person able to do either. </li>
<br />
<li>The buyer is required to make a payment of $500 or more to the seller or a person affiliated with the seller at any time before or within 6 months after the business opens. </li>
</ul>
<span><br /></span>If you fall within the FTC's definition of a "business opportunity venture," you must give each prospective customer a Disclosure Statement on the FTC's printed form, which is available online at <a href="https://www.ftc.gov/system/files/attachments/disclosure-important-information-about-business-opportunity/111122bizoppappendixa.pdf" target="_blank">business.ftc.gov/businessopportunitydisclosure</a>.<span> <br /><br /></span>If you do not come under the FTC's jurisdiction, you may still have to comply with the laws of 25 states that regulate business opportunities. At the present time, those states are: Alaska, California, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Nebraska, New Hampshire (for vending rack type programs only), North Carolina, Ohio, Oklahoma, South Carolina, South Dakota, Texas, Utah, Virginia, and Washington (State).<span> <br /><br /></span>Virtually all of these states require you to prepare a Disclosure Statement conforming to the state's requirements and deliver it to prospective purchasers at least X days before you take their money (the "X" will vary from 3 to 10 business days).<span> <br /><br /></span>The good news is that the state requirements are fairly uniform: if your attorney does a good job preparing a disclosure statement for one of these states, the same statement probably will satisfy the requirements in other states with only a minimum of tweaking.<br /><br /><span> </span>Some states require that you register your business opportunity with state regulators. This will involve preparing an application form, a disclosure statement, and certain other documents, and submitting them for filing along with a fee which is usually in the $100 to $500 range.<span> <br /><br /></span>As part of the application process, some states will require you to submit financial statements (income statement, balance sheet, and statement of changes in financial condition) for your most recently completed fiscal year. If more than 3 months has elapsed since the end of your most recent fiscal year, you may be required to submit updated financial statements for the current year-to-date.<span> <br /><br /></span>In most states, your financial statements do not need to be reviewed or audited. A handful of states, however, require all financial statements to be audited, a process which may cost you as much as $10,000 to $15,000 in accounting fees.<span> <br /><br /></span>If you are making claims that purchasers will earn at least a specific amount of money, or if you guarantee purchasers a return of their money at some point, some states will require you to post a surety bond, letter of credit or some other guaranty that you will be able to honor those claims when the time comes (Kentucky requires a $75,000 bond from all registered business opportunities).<span> <br /><br /></span>A number of states limit the amount of money you can accept from purchasers until they complete their training. If you require purchasers to pay the entire fee up front, you will have to put most of this money into escrow until you have delivered the training you promised.<span> <br /><br /></span>Finally, a number of states require you to give purchasers up to three (3) business days after signing your contract to change their mind and get their money back.<span> <br /><br /></span>Do not attempt to set up a business opportunity without the assistance of a good lawyer AND a good accountant. You will need them. <br /> <br /><strong><br /><br /></strong><strong style="font-size: 12px;">Cliff Ennico</strong><span style="font-size: 12px;"> (</span><a style="font-size: 12px;" href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a><span style="font-size: 12px;">) is a syndicated columnist, </span>author<span style="font-size: 12px;">, and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at </span><a style="font-size: 12px;" href="http://www.creators.com/">www.creators.com</a><span style="font-size: 12px;">. COPYRIGHT 2017 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</span>
Staff
2017-07-19T18:06:00Z
Before You Start Your Business Opportunity (Part 1 of 2)
Staff
http://www.DrLaura.com/b/Before-You-Start-Your-Business-Opportunity--Part-1-of-2/-960384699862275637.html
2017-07-13T13:20:00Z
2017-07-13T13:20:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com</a><br /><br /></p>
<blockquote><em>"We have operated a successful service business for many years. <br /><br />We no longer want to run the business ourselves, but we think this type of business is an excellent opportunity for other people. So we have come up with a training program to teach other people how to build a business like ours. <br /><br />Customers will pay $10,000 up front for the training program (a one week 'live' program at a local hotel), and an additional $1,000 a year for a 'refresher' course which we will deliver online. The training program will include an entire section on marketing, but we won't be giving attendees lists of customers or otherwise guaranteeing that they will have customers. They don't have to use our name, and they can sell their services anywhere they like (they won't be given exclusive territories). <br /><br /></em><em>We've done some homework, and we don't think we are selling 'franchises'. But we are seeing lots of references online to 'business opportunities' which seem to be regulated in some way. <br /><br /></em><em>Are we setting up a 'business opportunity' with our training program and, if so, what do we have to do to comply with the law?</em>" </blockquote>
<br />First, the good news: your training program is almost certainly NOT a "franchise" under federal regulations. You are not requiring trainees to use your brand name, you are not assigning them exclusive territories, and you are not asking for periodic "royalty payments" for the privilege of running the business - yes, customers will pay for training, but they can elect not to participate in the annual "refresher" course in which case they owe you nothing. <br /><br />Now for the tricky part: you may indeed have a "business opportunity" on your hands. <br />The definition of a "business opportunity" is somewhat slippery. The Federal Trade Commission (FTC) and about 25 states regulate business opportunities, and the definitions vary from state to state because there are different types of business opportunity. <br /><br />Florida, which has one of the most comprehensive regulatory schemes, defines a "business opportunity" as the sale or lease of any products, equipment, supplies, or services to enable customers to start a business for a price or fee that exceeds $500 and the seller promises that it (or anyone affiliated with or referred to it) will do any one of the following: <br />
<ul>
<li>Provide locations, or assist you in finding locations, for the use of vending machines, racks, display cases, or other similar devices, or currency operated amusement machines or devices, on premises that neither you nor the seller own or lease ("Type 1") </li>
<br />
<li>Will buy any of the things you make, produce, fabricate, grow, breed, or modify using supplies, services, or goods sold to you ("Type 2") </li>
<br />
<li>Guarantees in writing that you will earn income exceeding the price or rent you pay ("Type 3") </li>
<br />
<li>Will refund all or part of the price or rent paid ("Type 4") </li>
<br />
<li>Will repurchase any of the products, equipment, supplies, or goods supplied by it, if you are unsatisfied ("Type 5") </li>
<br />
<li>Will provide a sales or marketing program enabling you to earn income ("Type 6") </li>
</ul>
Your training program does not appear to come under the definitions for a Type 1, Type 3 or Type 5 business opportunity. If you do not offer your trainees a "money back guarantee" on their initial training program, you should not be viewed as a "Type 4" business opportunity. <br /><br />Because you are providing a training program designed to help people run businesses of their own, there's a risk that your program may be considered a "Type 6" business opportunity, even if you do not guarantee that following your marketing program will lead to success. <br /><br />Marketing is the key to success in any small business, as I've written endlessly in this column. If you are buying a small business "package," you will want advice on how to sell the product or service, who the customers are, where they are, how to get your message across to the customers, and so forth. A business training program that doesn't have a marketing component is pretty much worthless. <br /><br />Yet it's precisely that component that may put your program under the "Type 6" definition of a business opportunity. <br /><br />The Federal Trade Commission (FTC) does have certain requirements for business opportunities but their definition is not broad enough to cover "Type 6" situations like yours. Here's what you need to do: <br /><br />
<ul>
<li>First, hire an attorney who is experienced in a franchise and business opportunity regulation. Check your state Bar Association's website and look for attorneys who are members of the "franchise and distribution law" committee - those are the folks you should contact. </li>
<br />
<li>Next, have your attorney tell you which states regulate business opportunities, whether or not their regulations extend to "Type 6" situations like yours, and what you will have to do in each state before you can offer your program to their residents. </li>
</ul>
<br />More next week . . . <br /> <br /><strong><br /><br /></strong><strong style="font-size: 12px;">Cliff Ennico</strong><span style="font-size: 12px;"> (</span><a style="font-size: 12px;" href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a><span style="font-size: 12px;">) is a syndicated columnist, </span>author<span style="font-size: 12px;">, and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at </span><a style="font-size: 12px;" href="http://www.creators.com/">www.creators.com</a><span style="font-size: 12px;">. COPYRIGHT 2017 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</span>
Staff
2017-07-13T13:20:00Z
The Graduation Speech Your Kids Really, REALLY Need To Hear
Staff
http://www.DrLaura.com/b/The-Graduation-Speech-Your-Kids-Really,-REALLY-Need-To-Hear/433140979239395496.html
2017-06-15T23:38:00Z
2017-06-15T23:38:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com</a><br /><br /></p>
<em>This column, which originally appeared in May 2009, is one of the most requested and reprinted "Succeeding in Your Business" columns, especially during graduation season.</em> <br /><br />Members of the Class of 2017:<span> <br /><br /></span>I was sorry to hear that the reality TV star who was to have been your commencement speaker today had to bow out at the last minute. I was delighted, however, when the Trustees called me an hour ago and asked me to fill in.<span> <br /><br /></span>Now, I've never done this before, and I wasn't given a whole lot of guidance, except to tell you to "follow your dreams" and "reach for the stars". Apparently there's a federal law requiring those statements to be included in all graduation speeches.<span> <br /><br /></span>While I know some of you already have jobs and some (OK most of you) do not, I know that all of you are wondering today what your lives are going to be like. <span> <br /><br /></span>I have two pieces of information for you. <br /><br />They are not fun to talk about, but I feel you need to hear them, and no better time than today. <br /><br />
<ul>
<li>First, whatever dreams you hope to accomplish in your lives, you won't be able to achieve them until you have first achieved financial security for yourself and your loved ones. For most of you, unless you were born wealthy (and sometimes even then), finding and holding onto that financial security will be the primary, if not the only, thing you will spend time on for the next 50 years. </li>
</ul>
<span><br />
<ul>
<li>The second thing is that it has never been a more difficult time to make a decent living in America. I'm not just talking about the recent recession or the stubbornly high unemployment rate. I'm talking about some longer-lasting, structural changes in our economy.<br /><br />For your grandparents, it was easy. You signed up with a large corporation, worked your way up the corporate ladder, and retired at age 65 with a pension, Social Security and a gold watch. You can forget about doing that today.</li>
</ul>
</span><span><br /></span>Years ago, when America dominated the world economy, corporations viewed employees as scarce assets to be cultivated. In today's brutally competitive global economy, they view employees as costs to be reduced or eliminated. If you can buy technology to do the work employees are doing, you buy the computers and fire the employees. If you must hire people to do a job, you hire the cheapest people you can in developing nations. And if you really must hire Americans, you "outsource" them as independent contractors rather than employees. That way you don't have to pay them benefits. If you work for a large corporation today, odds are you will be unemployed in a few years.<span> <br /><br /></span>Social Security, Medicare and other government programs that helped your parents and grandparents probably won't be there when you are ready for them, at least not in their current forms. <span> <br /><br /></span>And if you think you can scale back your expectations and join the blue-collar workforce, there's a massive wave of immigrants from Asia, Africa and Latin America who are only too willing to take these jobs for salaries you won't want to accept.<span> <br /><br /></span>Ladies and gentlemen, there is only one person you can rely on to help you build your future and success, and that is you. One day, you will find that you are no longer employable, and you will have to build your own career or business. That moment of realization may happen next year; it may not happen until you turn 50. But it will happen someday, so start planning now to take control of your income and your life. You will need to become an entrepreneur, whether you like it or not.<span> <br /><br /></span>I know all of you want to do good for the world, and that's admirable. But charity requires money too - ask the President of this college why he spends so much of his time raising money from alumni/ae. <br /><br />If you want to do good for the world, start a business. Provide solutions to people's problems they are willing to pay for, and hire people to help you. Succeed, and your business will make the world a better place. Guaranteed. What is more, you will achieve the financial security you need, and whatever money you don't need you can use to make the world an even better place. <span> <br /><br /></span>I have had the pleasure of working with over 15,000 business owners in my career. They come from all walks of life and backgrounds. The beauty of this wonderful country of ours is that anyone - I mean anyone - can succeed in business with the right training, the right outlook on life, and the courage and determination to do what others are too squeamish or hesitant to accomplish. <span> <br /><br /></span>So by all means reach for the stars and follow your dreams, for without faith, hope and passion you will never succeed, even if you're as smart as Einstein. <span> </span>Just whatever you do, don't run out of money.<br /> <br /><strong><br /><br /></strong><strong style="font-size: 12px;">Cliff Ennico</strong><span style="font-size: 12px;"> (</span><a style="font-size: 12px;" href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a><span style="font-size: 12px;">) is a syndicated columnist, </span>author<span style="font-size: 12px;">, and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at </span><a style="font-size: 12px;" href="http://www.creators.com/">www.creators.com</a><span style="font-size: 12px;">. COPYRIGHT 2017 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC.Permission granted for use on DrLaura.com.</span>
Staff
2017-06-15T23:38:00Z
Time Management for People with No Time to Manage (Part 2 of 2)
Staff
http://www.DrLaura.com/b/Time-Management-for-People-with-No-Time-to-Manage-Part-2-of-2/-919017943875730236.html
2017-05-25T20:06:00Z
2017-05-25T20:06:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com</a><br /><br /></p>
Once you have mastered (or at least accepted as truth) the three basic principles of time management described in last week's column, it's time to tackle the tough job: organizing your time day to day so you can start enjoying life.<span> <br /><br /></span>Getting control of your time is, at least in my experience, a two-step process:<span> <br />
<ul>
<li>Compartmentalization</li>
<br />
<li>Prioritization</li>
</ul>
</span>Big words, these, but the concepts are both fairly simple. <br /><br />By "compartmentalization", I mean dividing your week or day into blocks or "<em>chunks</em>" of time devoted to specific activities, and creating walls between them so as to reduce or eliminate distractions - the biggest enemy of any time management program. You know how you can never get hold of a physician on Wednesdays when they play golf? That's an example of compartmentalization. <br /><br />Here are some of the ways I compartmentalize my time each week: <br /><br />Unless I have family commitments, I devote two hours on Sunday nights to writing this column. If family commitments prevent my doing so, I write the column first thing Monday morning and don't do anything else until it's done. <br /><br />Sunday nights are also for looking at my calendar for the coming week, blocking off "compartments" for each task on my to-do list, and updating the to-do list. <br /><br />I set aside one-hour late morning, and one-hour late afternoon, for answering phone calls and e-mail messages. I try to schedule all calls during these time slots if possible. And during these slots, I do nothing else. I try to take less than an hour during each slot wherever possible because responding to e-mails (and text messages if you accept them - I don't) is "Time Vampire No. 1". As I've said before in this column, an e-mail response requiring more than 50-100 words should be a phone call or "live" meeting. <br /><br />I schedule one hour on Wednesdays for my grocery shopping, dry cleaner, and local errands so that I don't have to do them on Saturdays. <br /><br />I work on my book manuscripts and PowerPoint presentations for speaking engagements on Thursday afternoons (usually a slow time in my practice), unless I have a transaction closing the next day, in which case I work Tuesday afternoons on these. <br /><br />I schedule two to three hours on Saturday mornings to draft contracts and other legal documents I couldn't get to during the week. I will occasionally schedule calls during this period with clients who are working on entrepreneurial ventures in their spare time and can't call during the workweek (I call them "evenings and weekends clients") but try not to make a habit of this. <br /><br />I never, ever look at e-mails on Sunday unless I have a transaction closing the next day, in which case I look only at those e-mails. <br /><br /><span> </span>By "<em>prioritization</em>," I mean ranking the projects on your to-do list and deciding which projects will occupy the available "chunk" you have set aside. Prioritizing your time involves creating a set of "<em>protocols</em>" to help you decide between Project A and Project B at a particular moment in time.<span> <br /><br /></span>Here are some of my protocols:<span> <br /><br /></span>A business acquisition or other large transaction closing in a matter of days gets top priority, with only a few exceptions.<span> <br /><br /></span>A new client call takes precedence over getting an existing project done (this may sound backward, but in my world, most new clients are calling several attorneys who have been referred to them, and in that competitive situation I want to make sure mine is the first or at least a prompt response).<span> <br /><br /></span>Matters involving a large fee take priority over matters involving a small fee, except for consulting and employment agreements, which tend to go to the top of the pile because: <br />
<ul>
<li>The client is under extreme pressure to respond promptly and appreciates a quick turnaround</li>
<br />
<li>I can usually do the work in an hour or less so it doesn't dramatically alter my schedule </li>
</ul>
Now, some of you reading this are probably thinking "<em>yeah, this all sounds great, but it's impossible to do all the time</em>." And you would be right. There is no such thing as perfection when it comes to time management - emergencies (such as a sick child or a death in the family) and clients with high-fee projects requiring immediate turnaround always wreak havoc with even the best time management program. You will constantly be updating and changing your plan, and there will be times when something slips through the cracks and you have to apologize to someone whose scheduled call you missed, or whose deadline you can't meet despite your best efforts.<span> <br /><br /></span>My approach to such solutions is, as usual, to use humor. When a client sends me an email asking "<em>where's my document?</em>" or "<em>how is Project X coming along?</em>", my response is always the same:<span> <br /><br /></span>"<em>Don't worry. You are not being ignored, you are only being prioritized</em>." Followed by a smiley-face emoji. Works every time . . . <br /><br /> <strong><br /><br /></strong><strong style="font-size: 12px;">Cliff Ennico</strong><span style="font-size: 12px;"> (</span><a style="font-size: 12px;" href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a><span style="font-size: 12px;">) is a syndicated columnist, </span>author<span style="font-size: 12px;">, and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at </span><a style="font-size: 12px;" href="http://www.creators.com/">www.creators.com</a><span style="font-size: 12px;">. COPYRIGHT 2017 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC.Permission granted for use on DrLaura.com.</span>
Staff
2017-05-25T20:06:00Z
Time Management for People with No Time to Manage (Part 1 of 2)
Staff
http://www.DrLaura.com/b/Time-Management-for-People-with-No-Time-to-Manage-Part-1-of-2/-383474544783195444.html
2017-05-12T18:06:00Z
2017-05-12T18:06:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com</a><br /><br /><br /></p>
Let's face it. We are all feeling a bit time starved these days. <br /><br />And there's a reason for that: technology. <br /><br />Thanks to our wonderful laptop computers, notebooks, notepads and smartphones, which were supposed to free us from menial tasks so we could spend more time meditating on the Meaning of Life, we have less time to ourselves than we did before the dawning of the Digital Age. <br /><br />Why is that, pray tell? <br /><br />Simple. While technology makes it much, much easier for us to do what needs to be done in "real time" (don't get me wrong - I couldn't do what I do for a living without all these doodads), it also makes it much easier for people to reach out and grab us any time they want. <br /><br />A ringing smartphone, an incoming text message or email, or a "ping" on your portable device is a lunatic screaming "Me! Me! Now! Now! Now! I am more important than whatever you are doing at the moment! Me! Now!" Even though we don't want to focus on them right now. Even though we don't even know who they are. <br /><br />Each day I get more than 10 voicemail messages and 50 incoming email messages that demand response (i.e. not junk), to say nothing of all the work I have to do for my law clients, writing this column, planning my next book, and so forth (I refuse to send text messages because if I did I would probably have to cope with more than 100 of those each day). How can I manage all of that and still have time to ponder the Meaning of Life, have fun, spend time with my family, etc.? <br /><br />Here's how. <br /><br />There are three basic principles of time management, and you won't find these in any book I'm aware of. <br /><br />
<ul>
<li>Whenever you feel overwhelmed by multiple priorities, ask yourself: "<em>Am I doing right now the thing that is most important to be done right now?</em>"<br /><br />In the words of the Broadway composer <a href="https://en.wikipedia.org/wiki/Jerry_Herman" target="_blank">Jerry Herman</a>, "<em>The best of times is now</em>." Zen Buddhists tell us the only time is the immediate moment.<br /><br />If I am in the middle of drafting a contract I promised a client they would receive today, I turn my email Inbox off and let the phone ring over to voicemail until that job is done.<br /><br />If I am speaking to you on the phone, I am not looking at my email Inbox at the same time: I give you 100% concentration until the call is over.<br /><br /><strong>Distraction is your biggest enemy when it comes to time management. </strong>Especially if you have a Y chromosome, multitasking is impossible. Don't even try to multitask. Whenever you give less than 100% of your time to something, you end up with less than a 100% result.<br /><br />I'm not saying you shouldn't move quickly, and get as much as possible done in a single day, but realizing that at any given moment you can be doing only one thing is the first step to successful time management.<br /><br />Of course, you have to make sure that one thing is the RIGHT thing. Which is where the other two principles come in.</li>
</ul>
<br />
<ul>
<li>Believe it or not, you are in control of your time.<br /><br />You decide whether to accept that phone call, answer that email or text message, or focus for the next hour on Project X. Just as <a href="https://en.wikipedia.org/wiki/Eleanor_Roosevelt" target="_blank">Eleanor Roosevelt</a> once said, "<em>Nobody can make you feel inferior without your consent</em>," nobody can interrupt your flow unless you let them do it.<br /><br />Don't let them do it.<br /><br />Unless, of course, the interruption is more important than what you are doing at the moment (an urgent call from your boss, for example). Setting up a "<em>hierarchy of priorities</em>" is essential to time management, which is where the third principle comes in.</li>
</ul>
<br />
<ul>
<li>Not everybody or everything is deserving of your time.<br /><br />Trying to be nice to everybody, and wanting too much to be loved by everyone, is fatal to time management.<br /><br />Stephen Covey, in his classic book "<em><a href="https://www.amazon.com/Habits-Highly-Effective-People-Powerful/dp/0743269519" target="_blank">The 7 Habits of Highly Effective People</a></em>", suggests that you distinguish between what is "<em>urgent</em>" and what is "<em>important</em>" when prioritizing your time. Most of us are pretty good at finding the time for tasks that are both urgent and important, and most of us easily blow off tasks that are neither urgent nor important. <br /><br />The problem, as Covey points out, is that when faced with a task that is urgent but not important and another task that is not urgent but important, most of us choose the former. This creates frustration because we know we need to spend time on the latter but can't find it.<br /><br />The key to resolving this dilemma is to ask: who (or what) is demanding an urgent response? Not everybody, or everything, is entitled to your precious, precious time. Some people and projects should be put on a "<em>back burner</em>," or ignored entirely. Yes, it's a bit selfish, but in a good way: letting too many of the wrong people have control of your time turns you into a slave. Identifying "<em>time vampire</em>s" - people or projects that suck time out of your life but don't add value to it - and keeping them to a minimum is the ultimate key to successful time management. </li>
</ul>
<br />So how should you apply these three principles in your everyday life? The answer . . . next week. <strong><br /><br /><br /><br /></strong><strong style="font-size: 12px;">Cliff Ennico</strong><span style="font-size: 12px;"> (</span><a style="font-size: 12px;" href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a><span style="font-size: 12px;">) is a syndicated columnist, </span>author<span style="font-size: 12px;">, and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at </span><a style="font-size: 12px;" href="http://www.creators.com/">www.creators.com</a><span style="font-size: 12px;">. COPYRIGHT 2017 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC.Permission granted for use on DrLaura.com.</span>
Staff
2017-05-12T18:06:00Z
The Right Way To Set Up A Certification Progam
Staff
http://www.DrLaura.com/b/The-Right-Way-To-Set-Up-A-Certification-Progam/436035730443604575.html
2017-04-12T20:09:00Z
2017-04-12T20:09:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com</a><br /><br /></p>
<blockquote><em>"I have been running my own service business for many years. So many years, in fact, that my name is widely known in my field. Over the years I have mentored many young people who have gone into this business, and the fact that I have trained them has been a major factor in their success. <br /><br />Someone recently suggested that I should 'brand' myself by offering a certification program where I would train people in this business and get paid for it. Once they successfully complete the program, I would allow them to hold themselves out as a 'certified' professional trained by me. <br /><br />I have to believe there are some legal questions to deal with when setting up such a program, but can't find anything online. Can I set up a certification program, and if so, what is the right way to go about it?"</em></blockquote>
<span> <br /></span>A certification program can be a great way to promote brand awareness, but there's a bit of a "<a href="https://www.google.com/search?q=Catch+22&rlz=1C1CHMO_enUS551US551&oq=Catch+22&aqs=chrome..69i57j0l5.559j0j7&sourceid=chrome&ie=UTF-8" target="_blank">Catch 22</a>" with these programs: for the certification to be recognized, the brand name must already be well established. If the person updating your personal computer or laptop is "certified by Microsoft Corp.", that means something because you know Microsoft and trust that someone certified as competent by Microsoft will do a better job installing or servicing Microsoft software than someone else who is not certified.<span> <br /></span><br />If, however, I say I am "certified by someone" and few people know who the "someone" is, the certification probably won't make it more likely customers will hire me (although some people may hire me anyway because they are embarrassed to admit they don't recognize the "someone" and the mere fact that anyone has bothered to certify me sets me apart from the competition).<span> </span>Having said that, there are several steps to creating a successful certification program.<span> <br /><br /></span>First, you need a registered trademark. Certification programs are all about "branding", and branding is difficult without a registered trademark. Expect to pay an attorney between $2,000 and $3,000 to do this the right way. Whenever a person completes your program and becomes "certified" to do whatever, they will have the right (called a "license") to use this trademark on their website, business card and other marketing materials.<span> <br /><br /></span>Then, you need to create the program itself, which usually consists of one or a series of training courses. What specific skills will be certified? Will there be just one training program, or several "levels" (for example, gold, silver, and bronze) an individual can sign up for? How long will each program take to complete? Will there be homework assignments or tests at the end of each "module" of the program so that both you and the student can measure performance? <br /><br />Next, you need to consider how the training program will be delivered. Will the training program be conducted online or "live"? Will the training program take place at a luxury resort somewhere fabulous? Most importantly, can be training program be replicated? A training program that needs to be customized to individual people is not a good candidate for certification. <br /><br />How will people maintain their certification once they achieve it? Will you require them to participate in "follow up" or "continuing education" programs to keep their skills fresh and up to date? If so, how often? Under what circumstances will a person lose his or her certification? How will you ensure that certified professionals are also good people who won't harm your program's reputation? If for example, you are certifying people to deal with young children, you want to be 100% sure no registered sex offender ever gets certified no matter how well they perform in the training program. <br /><br />Once your certification program is established, you want to be sure it is not considered a "franchise" or "business opportunity". Franchise and business opportunity programs are highly regulated at both the federal and state level and require tons of paperwork. To avoid being considered a franchise or business opportunity: <br />
<ul>
<li>To the extent possible, be sure a candidate for certification is already engaged in the business before they apply for certification</li>
<br />
<li>Be sure participants in your program pay flat fees for each training course or renewal of their certification - do not take a percentage of their revenue as that looks too much like a franchise "royalty" </li>
<br />
<li>Do not offer an exclusive territory to people who complete your program </li>
<br />
<li>Do not require certified people to buy supplies or equipment only from you</li>
<br />
<li>While it's okay to establish rules of conduct and "best practices" by which people can maintain their certification, do not make them so specific that you end up directing and controlling how certified people perform their services or run their businesses</li>
<br />
<li>Do not tell your candidates how to market their certified skills </li>
<br />
<li>Do not make any promises about how much (or how much more) a candidate will make once they have been certified.</li>
</ul>
<strong><br /><br /><br /></strong><strong style="font-size: 12px;">Cliff Ennico</strong><span style="font-size: 12px;"> (</span><a style="font-size: 12px;" href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a><span style="font-size: 12px;">) is a syndicated columnist, </span>author<span style="font-size: 12px;">, and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at </span><a style="font-size: 12px;" href="http://www.creators.com/">www.creators.com</a><span style="font-size: 12px;">. COPYRIGHT 2017 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC.Permission granted for use on DrLaura.com.</span>
Staff
2017-04-12T20:09:00Z
A Conference For The Serious Web Retailer
Staff
http://www.DrLaura.com/b/A-Conference-For-The-Serious-Web-Retailer/-255923652041385454.html
2017-03-16T20:01:00Z
2017-03-16T20:01:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com</a><br /><br /></p>
I had the privilege last week of speaking at <a href="http://thesellersconference.com/" target="_blank">The Seller's Conference in Philadelphia, Pennsylvania</a>. This event, formerly known as the Seller's Conference for Online Enterpreneurs (SCOE), was and has always been the leading U.S. conference for people who sell merchandise on Amazon.com. But last week's event demonstrates how a virtual team headed by event organizer Rhonda Schneider (rhonda@scoe.biz) has successfully adapted to change in this marketplace. <br /><br />First of all, the event is no longer just for Amazon sellers. The majority of programs at the event focused on tools for selling across multiple platforms (eBay, Amazon, etsy and so forth) and challenged attendees to explore relatively new venues such as jet.com and Google Shopping. <br /><br />Second of all, the event is no longer just for West Coast people. Originally an annual event held in Seattle, Washington, The Sellers Conference now is held twice a year - once in the spring in Philadelphia, and again in the fall in Seattle. <br /><br />But most importantly, the event's organizers have made the entrepreneurial decision - an extremely brave one - not to try to be "all things to all people." <br /><br />When it comes to conferences for Internet retailers, there are two basic flavors: <br /> <br />
<ul>
<li>Largescale events such as the <a href="http://www.irce.com/" target="_blank">Internet Retailers Conference and Exposition</a>, held in Chicago each June, which offers dozens of programs for sellers at all experience levels and which frankly can be a bit overwhelming. </li>
<br />
<li>Smaller scale events such as <a href="http://tamebay.com/2017/02/ebay-open-is-back-in-2017-this-time-in-las-vegas.html" target="_blank">eBay Open</a>, held in Las Vegas each July, which focuses strictly on eBay selling and targets primarily "<em>newbies</em>" and early stage sellers. </li>
</ul>
<br />Looking at this landscape, Ms. Schneider and her team realized that there was no event for serious intermediate or advanced sellers with annual sales in the six or seven figures (or beyond). Taking a gamble, they rebranded SCOE as "<em>The Seller's Conference</em>" and targeted high-end sellers by imposing a $699 per person fee for the three-day event. <br /><br />As a result, only about 100 people attended the Philadelphia conference, but from what I heard, no one was complaining. Most of the speakers, exhibitors and event sponsors I spoke to said they were delighted at the quality of the attendees, while one exhibitor said "<em>it's a pleasure to speak only to people who can actually use our services and understand what we're about without a lot of explanation</em>." <br /><br />Some of the program titles demonstrated the event's focus on sophisticated sellers, such as: <br />
<ul>
<li>"<em>Flywheels and Feedback Loops</em>" (if you have to ask what these are, you probably didn't belong at the conference) by e-marketing consulting firm <a href="https://www.efficientera.com/" target="_blank">Efficient Era</a></li>
<br />
<li>"<em>How to Plan for a Winning Exit with Your e-Commerce Business</em>", by London-based business brokerage firm <a href="https://feinternational.com/" target="_blank">FE International</a> </li>
<br />
<li>"<em>Trademark Law for e-Tailers</em>" by attorney C. J. Rosenbaum (<a href="http://www.amazonsellerslawyer.com/" target="_blank">www.amazonsellerslawyer.com</a>), author of the "<em><a href="https://www.amazonsellerslawyer.com/amazon-law-library/" target="_blank">Amazon Law Library</a></em>" series of legal guides</li>
<br />
<li><em>"Expanding Internationally</em>" by Gianni Munday, founder of Extra Direct UK Ltd. (<a href="http://extradirect.co.uk/" target="_blank">http://extradirect.co.uk</a>)</li>
<br />
<li>"<em>Stop Making Private Labels; Make Private Products!</em>" by Tim Jordan, co-founder of <a href="http://hickory-flats.com/" target="_blank">Hickory Flats</a>, a firm that helps U.S.-based Web retailers source product in China and elsewhere in Asia</li>
</ul>
<br />Speaking of private labeling (buying generic merchandise and putting your trademarked brand on them) -- a major topic at the conference -- the following advice was offered by branding consultant <a href="http://theprivatelabelteam.com/" target="_blank">Anthony P. Fichera</a>:
<blockquote>"<em>When starting white label/private label product projects, regardless of the channel you choose to sell on, start with a reasonable, low exposure quantity, 24-96 units. Secondly have a plan in place to differentiate your product great images, excellent well thought out bullets and content/description. Think about a creative, easily printed label (with your logo!) that you can apply to the box and upload as a secondary image. Create instructions or an insert that also has your brand logo applied, have a clean photo of that and use that as one of images. Creating a value added document that you upload as an additional image, recipes, tips on how it may be used to get the best value. A short 'eBook' pdf that is offered as a follow up to purchases, always with your brand logo included on them and emailed to the buyer after purchase.</em>"</blockquote>
<br />As for me, I spoke on "<em>Legal and Tax Issues for Web Retainers</em>" and focused specifically on dealing with accusations that your firm is selling counterfeit merchandise online. In many cases, these letters are sent by product manufacturers (or their attorneys) who are upset you are selling their - quite legitimate - merchandise outside of their authorized chain of distributors. <br /><br />A 2013 U.S. Supreme Court case - <a href="/(http:/en.wikipedia.org/wiki/Kirtsaeng_v._John_Wiley_%26_Sons,_Inc." target="_blank">Kirtsaeng v. John Wiley & Sons, Inc.</a> - gives Web retailers broad defenses against such claims, and very often if a seller asserts its rights under the Kirtsaeng case the offending letter simply goes away. <br /><br />The Sellers Conference is now positioned as the "must attend" event for advanced and professional Web retailers. Congratulations to Rhonda Schneider and her team on a job well done. <br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2017 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC.Permission granted for use on DrLaura.com.
Staff
2017-03-16T20:01:00Z
Can You Serve The Millennial Generation?
Staff
http://www.DrLaura.com/b/Can-You-Serve-The-Millennial-Generation/558610969217973476.html
2017-02-15T20:11:00Z
2017-02-15T20:11:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com</a><br /><br /></p>
"I am an accountant who has been working with small businesses for over 30 years. I don't consider myself an 'old person,' and am actually quite fluent in today's digital technology (at least my kids tell me I am).<span> <br /><br /></span>As my clients retire and pass their businesses on to their own children, though, I find myself having more and more trouble with communications. The new generation wants to do everything by text message, and they demand instant responses to all questions.<span> <br /><br /></span>I'm all for being responsive to my clients' needs, but there are times when I can't respond to things in Internet time. Maybe I have to research or think about something before I answer. Maybe I have to make manual changes to someone's tax return that can't be made using the TurboTax(r) template.<span> <br /><br /></span>I've had more than one client tell me that <em>'in this day and age</em>' it isn't acceptable service not to respond to an e-mail or text message instantaneously. But is it acceptable service to respond in haste and risk committing malpractice? I don't want to have to choose between my professional responsibility and my professional reputation for good customer service."<span> <br /><br /></span>Boy, do I feel this person's pain.<span> <br /><br /></span>It's no secret that today's technology has sped up our lives to the point that many of us (and I'm not just talking about Baby Boom geezers in their 60s and 70s) feel that things are spiraling out of control. Many of my clients think nothing of sending me a multi-page text message with all sorts of interweaving problems and demanding a response within an hour.<span> <br /><br /></span>Yet to my knowledge (and I should know - I make it a point to attend the<a href="http://10times.com/legaltech-newyork" target="_blank"> LegalTech trade show</a> in NYC each year -- specifically to learn about new technology products for lawyers) there is as yet no app, cloud-based solution or robot that will help me draft and review legal contracts faster without sacrificing accuracy. It takes me every bit as long to do that work as it did when I first started practicing 36 years ago. <span> <br /><br /></span>It gets worse. While I'm drafting or reviewing a contract for one of my clients, time stands still. Every contract is unique - there is no such thing as a "<em>boilerplate</em>" contract form where I just fill in the blanks and hand it to the client as a finished product. That never happens. <br /><br />When I'm drafting contract language I have to think not only about the paragraph I'm working on at the moment, but other conforming changes that need to be made elsewhere in the document so the change I'm making now works. I simply can't be interrupted by phone calls, text messages, or anything that goes "<em>beep boop bop</em>" that disrupts my flow of thought. All that stuff has to wait a little bit until I finish the contract and come up for air. <br /><br />While I certainly can work on multiple projects at the same time, at any given moment there can be only one priority on my time: at the present moment, it's finishing this column. I can't be rushed.<span> <br /><br /></span>But try explaining that to a fast-talking multitasking Millennial who grew up in a world where instant gratification was the norm. Many of these folks don't even think in complete sentences with a subject, a verb, and an object. They speak in a form of shorthand where clarity is sacrificed for speed in getting the basic message across. That is, when they can be persuaded to speak at all.<span> <br /><br /></span>I'm leery about putting some communications in e-mail or text format for fear they may come back to bite me if it turns out I "jumped the gun", made some unwarranted assumptions or didn't ask the client all the right questions. There are times when I need to talk through an issue with a client and give him a "<em>quick curbside</em>" answer - one I don't want to be held accountable for.<span> <br /><br /></span> When I'm under too much pressure from a client for a quicker-than-natural turnaround, I sometimes resort to the old question "<em>would you rather have your answer quickly or would you rather I get it right?</em>" But there's a funny thing about Millennials - they all love comic irony, except when it's directed at them.<span> <br /><br /></span>So here's what I do in an era of unmanageable expectations.<span> <br /><br /></span>Whenever a client is pressing me for time, I leave a voice message on their cell number as follows: <br />
<blockquote><em>"Thanks for your message. I am working on your matter and assure you that you are not being ignored, merely prioritized. I have a number of projects that are on very tight deadlines, but I can promise you will have your answer/document/whatever by [time] on [date]. If you really need it sooner, please call and let me know as that really helps me manage my time</em>." </blockquote>
<br />Then I move heaven and earth to make sure I meet the self-imposed deadline. <br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2016 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC.Permission granted for use on DrLaura.com.
Staff
2017-02-15T20:11:00Z
When Your Franchise Won't Co-Operate with Your Business Goals
Staff
http://www.DrLaura.com/b/When-Your-Franchise-Wont-Co-Operate-with-Your-Business-Goals/-763412838402833749.html
2017-02-09T18:37:00Z
2017-02-09T18:37:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com</a><br /><br /></p>
"I bought a well-known franchise 12 years ago and have built my territory into a multi million dollar business.<span> <br /><br /></span>I decided last year to retire and sell my franchise but the franchise has thrown a number of roadblocks into the process. I had a potential buyer for my entire territory but the franchise balked at approving the sale because they said they felt the buyer was 'too entrepreneurial' and 'would have difficulty coloring within the lines'.<span> <br /><br /></span>I have been approached by other potential buyers but none of them can afford to pay what my entire franchise territory is worth, and the franchise is flat out refusing to subdivide my territory to make it more attractive to these potential buyers. I'm more than willing to subdivide my territory if it will make it easier to sell the whole thing over the next couple of years.<span> <br /><br /></span>I'm at my wit's end about what to do here. It appears that I may be the victim of my own success in realizing the fullest potential from my franchise territory."<span> </span>Franchises can be wonderful investments, as long as you and the franchise agree on everything. When you and your franchise disagree, life can be a lot more complicated than it would be in a standalone business.<span> <br /><br /></span>When you buy a franchise, you trust that the franchise and its management team knows more about the business than you do. Owning a franchise is exactly halfway between running your own business, and working for someone else. At the end of the day, while you own your franchise territory, you don't own the business model -- you are executing someone else's model in your territory. <br /><br /> What has happened here (and it frequently happens) is that there is a conflict between what you think is right for your particular territory, and what the franchise thinks is right for the franchise system as a whole. Until that conflict is resolved, it will be difficult for you to sell your territory because the franchise must approve any "resale" to a new franchisee. <br /><br />First, some basics. When you own a franchise but want out of the system, you generally have only three options. You can: <br /><br /> <ol>
<li>Wait until your franchise term comes up for renewal and refuse to renew </li>
<br />
<li>Sell your franchise to a third party with the franchise's approval </li>
<br />
<li>You can negotiate a termination "by mutual agreement" with the franchise (your franchise agreement probably does not offer this option, but in my experience virtually all franchises will negotiate a termination with you as it saves them the cost and embarrassment of having to declare default and explaining the circumstances to current and future franchisees). </li>
</ol> <br />My first question is whether your franchise had the right to block your sale to the buyer who was willing to pay market value for your territory. Assuming your sale price was north of $1 million, such buyers do not grow on trees. Your franchise agreement probably imposed several conditions on your ability to sell, one of which was the franchise's approval of your prospective buyer. You should talk to an attorney familiar with franchise disputes and ask him/her whether under case law a franchise may refuse a potential buyer "in its sole discretion" or if there is a requirement for the franchise "not to unreasonably withhold" its consent. <br /><br />If franchises are required to be "reasonable" in approving prospective new franchisees, that may give you some ammunition in court or an arbitration proceeding. <br /><br />The franchise's refusal to subdivide your territory is a bit stickier, as most franchise agreements state clearly (and the law backs them up) that the determination and allocation of franchise territories is solely within the franchise's discretion at all times. Simply put, you won't be able to force the franchise to subdivide your territory if they feel that doing so is not in the best interest of the franchise system as a whole. <br /><br />One possible solution would be for the franchise itself to buy your territory if you cannot find an acceptable buyer within the next X months (there's a clause in the franchise agreement allowing them to do that), but you are unlikely to get the same competitive price you would get from an arm's length buyer. <br /><br /> Another possible solution is for you to retain a <a href="https://www.sba.gov/blogs/what-franchise-broker" target="_blank">franchise broker</a>. While you will need to pay a fee for their services, these people know what franchises look for in potential franchisees and can help you "vet" prospective buyers so you are more likely to get the franchise's approval the next time around. <br /><br />I would propose that you arrange a meeting with the franchise's senior management at their corporate headquarters and discuss your dilemma with them face to face. Your franchise will not want to kill a goose that's laying golden eggs and will have a strong incentive to work out a solution for a top-performing franchisee, because they will know all of their other franchisees with large, highly profitable territories will be watching and waiting on the outcome. <br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2016 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC.Permission granted for use on DrLaura.com.
Staff
2017-02-09T18:37:00Z
The Four Ways Nonprofits Can Raise Money
Staff
http://www.DrLaura.com/b/The-Four-Ways-Nonprofits-Can-Raise-Money/-355296974865668102.html
2017-01-26T18:33:00Z
2017-01-26T18:33:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com</a><br /><br /></p>
For the past several years, I've given a talk to local business groups on "<em>the secrets of nonprofit success</em>." Each year, my audiences get bigger and bigger. It sometimes seems that nobody wants to make a profit anymore. <br /><br />I always begin my talk the same way: I offer to give a free, autographed copy of one of my books to anyone who can answer the question "<em>What is the first, and most important, challenge facing any nonprofit organization that is just getting started?</em>" <br /><br />You wouldn't believe how few books I give out. <br /><br />Most people answer the question by referring to the organization's purpose: "<em>We need to draft a mission statement</em>." "<em>We need to figure out how we will get our Section 501(c)(3) exemption from taxes.</em>" "<em>We need to figure out who we are serving and how we will serve them.</em>" <br /><br />All of these are important activities, of course. But they are not the first, or most important, challenge facing the newly-formed nonprofit organization. <br /><br />The correct answer? <br /><br />"<em>We need to figure out how we will make a profit.</em>" Just because an organization is designated as "<em>nonprofit</em>" does not mean it cannot make a profit. It simply means that the organization's profits are not distributed to the owners of the business as would be the case with a "<em>for profit</em>" business. The profits of nonprofit organizations are required (by law) to be plowed back into the company to achieve its charitable goals. <br /><br />Without profits, a nonprofit will struggle to pay its rent, meet its payroll and cover its other expenses each month, just like any other business. There will be nothing left over to carry out the charitable purposes the organization was formed to fulfill. So making a profit is, or should be, Goal Number One for any nonprofit startup. <br /><br />If you are planning to start a nonprofit, you need to be good at fundraising, because you will spend 80% to 90% of your total time on that activity. But where do you look for revenue? <br /><br /><strong>There are four ways - and only four ways - that nonprofits can generate revenue.</strong> <br /><br /><ol>
<li><strong>Government Grants.</strong> Many nonprofit organizations will qualify for grants from the federal, state or local governments. To find out how to research federal grants, go to <a href="http://www.grants.gov/" target="_blank">www.grants.gov</a>, or search the Catalog of Federal Domestic Assistance at <a href="https://www.cfda.gov/" target="_blank">www.cfda.gov</a>. Finding state and local government grants will require much more research, but a good place to start is <a href="https://www.grantwatch.com/" target="_blank">www.grantwatch.com</a>.<br /><br />Filling out grant application forms is as much an art as a science - you have to know what the granting agency's "<em>hot buttons</em>" are and hit them hard. There are over 2,000 books on "grant writing" listed on Amazon.com. Many local community colleges offer affordable evening courses in grant writing.<br /><br />Looking to hire a professional grant writer or fundraising consultant? Go to the Association for Fundraising Professionals website at <a href="http://www.afpnet.org/" target="_blank">www.afpnet.org</a> and click on the green "<em>chapter</em>" button to find the AFP chapter closest to you. </li>
<br /><br />
<li><strong>Individual Donations.</strong> If you want to raise money from wealthy individuals in your state or community, you will need to register with the IRS as a <a href="https://www.irs.gov/charities-non-profits/charitable-organizations/public-charities" target="_blank">501(c)(3) "<em>public charity</em>"</a> - these are the only organizations allowed by federal law to accept donations that can be deducted on the donor's tax return. And make no mistake - no matter how charitably motivated, these people will want to deduct their donations. <br /><br />Solicitations for donations are best made by people the donors already know, so plan on having some well-connected rich folks on your board who are comfortable hitting their friends and country-club cronies up for donations on a regular basis. And be prepared to bite your tongue when a prospective donor utters those fateful words, "<em>we love your organization, we just have one small condition . . . </em>" </li>
<br /><br />
<li><strong>Sales of Products and Services.</strong> The bake sale. The car wash for the local high school cheerleading squad. The hospital gift or thrift shop. The black-tie silent auction. You get the idea. People donate stuff and then you sell it. <br /><br />Watch out for what the IRS calls "<a href="https://www.irs.gov/publications/p598/ch04.html" target="_blank">unrelated taxable business income</a>." If the IRS thinks you are raising income in a way that is unrelated to your organization's "<em>exempt purpose</em>," you may have to pay taxes on that income. <br /><br />Also have your attorney look into local gambling laws that may affect your ability to conduct "<em>Las Vegas Nights</em>," bingo games or similar activities, and be mindful that many states put a limit on the number of selling events you can host each year without having to charge state and local sales taxes. <strong> </strong></li>
<br /><br />
<li><strong>Crowdfunding.</strong> For the past 10 years, crowdfunding websites such as <a href="https://www.kickstarter.com/" target="_blank">kickstarter.com</a>, <a href="https://www.gofundme.com/" target="_blank">gofundme.com</a> and <a href="https://www.indiegogo.com/" target="_blank">indiegogo.com</a> have enabled nonprofits to raise funds from total strangers. For a list of the "<em>top 10</em>" crowdfunding sites by traffic ranking, go to <a href="http://www.crowdfunding.com/" target="_blank">www.crowdfunding.com</a>. For advice on putting together a crowdfunding campaign, check out "<em><a href="https://www.amazon.com/Nonprofit-Fundraising-Darian-Rodriguez-Heyman/dp/1119100461" target="_blank">Nonprofit Fundraising 101</a></em>" by Darian Rodriguez-Heyman or "T<em><a href="https://www.amazon.com/Ultimate-Nonprofit-Fundraising-Crowdfunding-finish-ebook/dp/B018VMJG0I/ref=sr_1_1?s=books&ie=UTF8&qid=1485490092&sr=1-1&keywords=the+Ultimate+Guide+to+Nonprofit+Fundraising+with+Crowdfunding" target="_blank">he Ultimate Guide to Nonprofit Fundraising with Crowdfunding</a></em>" by Steve Vick (the latter available only as an e-book). </li>
</ol><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2016 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC.Permission granted for use on DrLaura.com.
Staff
2017-01-26T18:33:00Z
3 Ways Our Own Goals Make Us Unhappy
Staff
http://www.DrLaura.com/b/3-Ways-Our-Own-Goals-Make-Us-Unhappy/330294401452734502.html
2017-01-12T18:49:00Z
2017-01-12T18:49:00Z
<p><strong><br />By Tom Sterner<br /></strong><a href="http://tomsterner.com/" target="_blank">www.TomSterner.com</a></p>
<br />Setting goals for ourselves is what keeps us moving forward. It's what creates innovation, growth, and is the reason we pursue anything new. We set a goal and work to reach it. In and of itself, goal-setting is positive. But if we don't fully understand all that is involved in creating and achieving our goals we can easily sabotage the process.<br /><br />Fortunately, this is a mindset that we can change, and here are 3 key points to remember:<br /><br /><ol>
<li><strong>Set your goals with accurate data.</strong> Generally speaking, when we set a goal we very quickly consciously or unconsciously set a timeframe in which to accomplish it. It is not uncommon for this time frame to have very little data to support it and many times we make it at a subconscious level. <br /><br />Then we begin to judge our progress and even our ability to achieve our goal based on this timeline. For example, if we decide we want to lose 20 pounds and we give ourselves 10 days to do it, we can all see that it is a fail from the beginning. That is why I use this example. No matter how well we stick to our nutrition plan and our exercise plan we will not reach the goal in 10 days. <br /><br />If in five days we get on the scale and see a weight loss of 7 pounds, even if our progress is quite accelerated we will feel like a failure because we will be judging our progress based on a faulty timeline. We do this quite often and it can undermine our confidence in our ability to accomplish our goal. This is why accurate data when creating goals is so important. <br /><br />We should also remember that initially, depending on what we are undertaking we may not be able to access all the information necessary to set an accurate time frame. Keeping this in mind leaves us flexible and keeps negative judgments about our progress at a minimum.<ol><br /></ol></li>
<br />
<li><strong>See the "process" of achieving your goal as the fundamental goal. </strong>When we set a new goal most of us have an unhealthy habit of becoming very attached to the moment we reach the goal. When we do this it makes the process of achieving the goal feel like a nuisance we have to endure. In reality the only reason our goals feel satisfying is because of what we go through to accomplish them. <br /><br />We spend 99% of our time achieving our goals and only a very short period of time in the moment of achievement. Shifting to a present moment mindset where your primary focus is to be absorbed in the process of achieving your task while using the end goal as nothing more than a rudder to steer your effort completely changes your experience of working towards anything. The feeling of longing drops away and in every moment that you stay process oriented you feel successful.<ol><br /></ol></li>
<br />
<li><strong>Take time to appreciate the goals you have already reached.</strong> We are designed from the ground up to want to expand as individuals. It's in our DNA. If we didn't operate from this perspective, we would still be living in caves because we would feel that nothing needed to change. This is why we are driven to reach for more, to set new goals. <br /><br />But so often after we reach a goal and we choose the next mountain to climb we quickly forget how many goals we have set in the past, how many we have accomplished and how many skills we have acquired through our efforts. By doing this we deprive ourselves of confidence building perspective that we are entitled to and that we have earned. Take the time to notice and appreciate your past accomplishments.</li>
</ol><br />Personal growth, in and of itself, is and should be rewarding. Being able to look back a week prior and say, "I'm more skilled now than I was then," is a great feeling. Looking forward to a goal and saying, "I am unhappy because I'm not there yet," is a great way to feel terrible. When we set goals, we need to set them intelligently. Remember your goals should serve to inspire you, not serve to remind you of what you have left to accomplish.<br /><br /><br /><br /><strong>Thomas M. Sterner</strong> is an international best -selling author and the founder and CEO of <em><a href="http://www.thepracticingmind.com/?doing_wp_cron=1484273618.7045080661773681640625" target="_blank">The Practicing Mind Institute</a></em>. As a successful entrepreneur he is considered an expert in Present Moment Functioning or PMF tm. He has brought clarity to thousands regarding how they can accomplish more with less effort, in the least amount of time and with greatly reduced stress. For more information visit <a href="http://tomsterner.com/" target="_blank">www.tomsterner.com</a>. Permission granted for use on DrLaura.com.<br />
Staff
2017-01-12T18:49:00Z
Sourcing Merchandise for Sale on Ebay
Staff
http://www.DrLaura.com/b/Sourcing-Merchandise-for-Sale-on-Ebay/588478582646451915.html
2017-01-05T18:49:00Z
2017-01-05T18:49:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com</a><br /><br /></p>
Slowly but surely, eBay is making a big comeback. <br /><br />I was privileged enough to give a talk at 2016's eBay Open conference in Las Vegas (<a href="http://www.ebayopen2016.com" target="_blank">www.ebayopen2016.com</a>) on some of the legal and tax issues involved in sourcing the merchandise that you want to sell on eBay. <br /><br />Here are some highlights from my talk: <br /><br /><strong>You must source your merchandise legally.</strong> A thief cannot pass good title to property of any kind. Seriously, dude, don't even THINK about doing any of the following: <br /><br />
<ul>
<li>Stealing merchandise: Until garbage is actually picked up by a trash hauler, it is still considered somebody's property - resist the temptation to "<em><a href="https://en.wikipedia.org/wiki/Dumpster_diving" target="_blank">dumpster dive</a></em>" or "<em>blue bin binge</em>" on trash pickup day.</li>
<br />
<li>Robbing somebody's grave: Even if it is a centuries-old burial ground you discovered while installing your backyard swimming pool; </li>
<br />
<li>Shoplifting: Even if it was during a riot or power blackout and, well, everybody was doing it.</li>
<br />
<li>Selling stuff eBay says you can't sell on the site: An alphabetical list of prohibited items can be found at <a href="http://pages.ebay.com/help/policies/index.html" target="_blank">http://pages.ebay.com/help/policies/index.html</a>. </li>
<br />
<li>Buying merchandise from dubious sources that you just know, or have strong reason to believe, is counterfeit or violates somebody's trademark: In the immortal words of rock singer <a href="https://en.wikipedia.org/wiki/Meat_Loaf" target="_blank">MeatLoaf</a>®, "<em><a href="http://www.azlyrics.com/lyrics/meatloaf/twooutofthreeaintbad.html" target="_blank">there's ain't no Coup deVille hiding at the bottom of a Crackerjack box</a></em>". </li>
</ul>
<br /><strong>"<em>Drop shipping</em>" and consignment sales.</strong> When you drop ship somebody else's goods, you sell their stuff online, collect the money, take your cut, and remit whatever's left over to the owner, who ships the order. Make sure you include sales taxes in each state where the owner has a physical place of business, and make sure the owner warns you when it's running low on inventory.<br /><br /> Consignment sales are the same as drop shipping except that the owner is usually an individual and not a company. The same sales tax rules apply to consignment sales as apply to drop shipping. Also, make sure either you take possession of the merchandise, or get the seller to agree not to sell or give the merchandise to anyone else until your eBay listing ends. <br /><br /><br /><strong>The tricks to "<em>retail arbitrage</em>". </strong>When you buy something and pay the full retail price, then resell that something on eBay for an even higher price, that's called "<em>retail arbitrage</em>". You will have to pay sales tax when you buy the merchandise, and deduct it as part of your "<em>cost of goods sold</em>" when the item sells on eBay. Also, if you resell the item to someone who lives in the same state you do, you will have to collect your state's sales tax (yes, there is sometimes double sales tax in retail arbitrage transactions). <br /><br />Retail arbitrage is all about maxing out your margins. Don't buy gift pens for $1 apiece and resell them for $2. Look for the clearance merchandise that's discounted 60% or more, then offer a 20% discount off the list price on eBay. Don't worry, the buyers will be there. If it's trademarked merchandise (think Coach® handbags or just about any brand of perfume), buy only from authorized sources and include a photo of the receipt in your eBay listing so you can demonstrate provenance in case somebody accuses you of selling bogus stuff. <br /><br /><br /><strong>Becoming somebody's "<em>exclusive online distributor</em>".</strong> This is the best way to "<em>lock in</em>" a continuing source of supply for high-demand merchandise. Approach a local manufacturer of really cool stuff and offer to be their "<em>exclusive online distributor</em>". Many companies don't have the time or patience to build an online sales channel and will welcome the opportunity to work with you. Make sure the agreement lasts for at least three years, and that the manufacturer agrees not to sell their stuff online with anyone but you during that time. <br /><br /><br /><strong>Selling "<em>private label</em>" merchandise.</strong> When you buy generic merchandise overseas (usually from China or elsewhere in Asia), slap your trademark on it and resell it on eBay, that is called "<em>private labeling</em>". It can be a great way to build a brand if you truly are adding value to the merchandise in some way, but it can get you into a lot of legal trouble. <br /><br />When you private label, you assume all legal liabilities of the manufacturer. If the product is defective or harmful, that will become your problem. You will need products liability insurance. Make sure the merchandise is not counterfeit, and that the manufacturer isn't selling the identical merchandise to other eBay sellers who may then (believe it or not) sue you for infringing their private label brand. <br /><br /><br />The secret to success when selling on eBay, or on any other online retail venue, is to find merchandise that is always in demand, with little competition, in quantities big enough that you can easily restock your inventory whenever necessary, at a low enough price that you can realize a decent profit on resale, in a "niche" that's big enough to give you a living and help you build a recognizable brand identity. <br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2016 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC.Permission granted for use on DrLaura.com.
Staff
2017-01-05T18:49:00Z
Year-End Tax Planning For 2016
Staff
http://www.DrLaura.com/b/Year-End-Tax-Planning-For-2016/784066996852449448.html
2016-12-28T18:49:00Z
2016-12-28T18:49:00Z
<p><strong><br />By Cliff Ennico<br /></strong>SucceedingInYourBusiness.com<br /><br /></p>
As most of us prepare for a joyous holiday season in late December, lawyers, accountants, tax and financial planners prepare for the dreaded "<em>year end crunch</em>," when virtually all of our clients try to cram deals through the pipeline before the ball drops in Times Square on New Year's Eve.<span> <br /><br /></span>As a young lawyer I frequently pulled 100-hour weeks between December 15 and 31 each year. When the marathon was over, I was ferociously ready to party, but everyone else was taking down their decorations and trudging back to work. My wife lovingly kept the Christmas decorations up until mid-January so that I could enjoy at least a little bit of holiday spirit, albeit a bit late. <span> <br /><br /></span>As a much older lawyer, I have a bit more discretion in what I take on this time of year, but it's still a crunch. Especially this year, with a new President and new Congress taking over in Washington on January 1 with a radically different agenda than previous administrations. Simply put, no one knows what the Hell is going to happen with taxes and regulations next year. <span> <br /><br /></span>Still, there is 2016 to consider. Nothing is likely to change until after Congress changes hands, so the best advice is not to worry about the new administration's promises made during the election campaign and focus instead on the tax benefits offered by current law.<br /><br /><strong> Charitable Deductions. </strong> Incoming Treasury Secretary <a href="https://en.wikipedia.org/wiki/Steven_Mnuchin" target="_blank">Steven Mnuchin</a> has said in interviews that while the new administration is committed to slashing the top tax rates for high-income taxpayers and dramatically reducing the pass-through tax rate on S corporations and limited liability companies to 15% -- an amazing idea if small business owners use that extra cash to expand their businesses and motivate their employees, not stuff it into their own pockets -- there will be an offsetting reduction in the number of allowable deductions these folks will be able to take on their tax returns. This strategy brings back memories of what Ronald Reagan's administration did in 1986 (remember the days when you could deduct credit card interest?).<span> <br /><br /></span>One of the biggest deductions small business owners take is charitable contributions, so you should plan on maximizing these this year and head off any "<em>cap</em>" Congress may wish to impose next year. Especially if you have an IRA or SEP account - a federal law passed last year allows an exclusion from gross income of contributions up to $100,000 made from such accounts before January 1, 2017 if you are age 70-1/2 or older. Time to endow that building at the local community college, but be sure the transfer to the charity is completed by December 31, 2016.<span> <br /><br /></span><strong>Sign Up for Classes Now. </strong> You've always wanted to learn how to code software, right? Well, now's the time to sign up with your local coding academy (for a list of the best ones, see <a href="https://www.switchup.org/research/best-coding-bootcamps" target="_blank">www.switchup.org/research/best-coding-bootcamps</a>). You can take an above-the-line deduction for qualified tuition and related expenses paid prior to January 1, 2017 for semesters that begin up to three months after the start of the new year. The maximum amount of the deduction is $4,000 for an individual whose adjusted gross income (AGI) for the tax year does not exceed $65,000 ($130,000 for a joint return), or $2,000 for other individuals who AGI does not exceed $80,000 ($160,000 for a joint return). <span> <br /><br /></span>Just be sure that the education you seek relates somehow to the business you are in. If you are a plumber, a course in medieval philosophy probably won't qualify for the deduction.<span> <br /><br /></span><strong>Send Your Bills Out Late. </strong>If you did work for someone in December, think about sitting on your invoice and sending it out after January 1. It's always a good idea to postpone year-end income into the next year, but especially this year when next year's tax rate is likely to be much, much lower.<span> <br /><br /></span><strong>Prepay Your Professionals, and Your Taxes.</strong> There is one reason that I really, really enjoy this time of year: all of my clients who want to do something during the first quarter of next year call me offering to pay me now . . . in advance. Professional fees will always be deductible (professional group lobbyists are among the toughest in Washington) so feel free to pay now to have next year's tax return prepared. Just be sure to call your professional first and let them know you want to do that - if someone sends me a check I'm not expecting I assume it's a holiday tip.<span> <br /><br /></span>Also remember that while your federal and state estimated taxes aren't due until January 15, some states require you to pay the fourth-quarter installment by December 31 in order to take the deduction in the current tax year. The same rules may apply to sales, use and property taxes as well.<span> <br /><br /></span>For a comprehensive list of tax law changes that will go into effect December 31, go to <a href="http://news.cchgroup.com/2016/10/10/2016-year-end-tax-planning-tax-briefing-now-available/" target="_blank">http://news.cchgroup.com/2016/10/10/2016-year-end-tax-planning-tax-briefing-now-available</a>. <br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2016 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC.Permission granted for use on DrLaura.com.
Staff
2016-12-28T18:49:00Z
From a Tiny Grain of Sand
Staff
http://www.DrLaura.com/b/From-a-Tiny-Grain-of-Sand/445675096051775691.html
2016-11-22T16:54:00Z
2016-11-22T16:54:00Z
<p><strong><br />By Cliff Ennico<br /></strong>SucceedingInYourBusiness.com<br /><br /></p>
<em>This week's column is an excerpt from a talk given by Cliff Ennico to participants in a recent business plan competition.</em><span> <br /><br /></span>It was a pleasure to be a judge at this year's competition. You are all to be congratulated on the amount of work you put into your business plans, even though some of them, well, need a little more thought. <span> <br /><br /></span>You are all now wondering whether or not your plans will succeed in the real world. While "<a href="https://en.wikipedia.org/wiki/Shark_Tank" target="_blank">Shark Tank</a>" is a fun show to watch on television, and we all love seeing one of the "sharks" commit to making an investment, the hard truth is that the vast majority of entrepreneurial startups never get funding. <span> <br /><br /></span>Some of you have good ideas, but that won't be enough. I hope you don't mind, but I want to share with you one concern that I have with virtually every one of you and your teammates.<span> <br /><br /></span>You are all way too nice to be entrepreneurs. <br /><br />You care way too much about what other people think of you, and you want too desperately to be loved and admired. You want to be a hero, because entrepreneurs are your heroes. Those are all qualities that led you here, but they will eventually kill your business plan, and destroy your dreams. <br /><br />Let me explain.<span> <br /><br /></span>You all know what a pearl is, right? One of the most beautiful objects in all of nature, and a highly prized piece of jewelry. But do you know how pearls happen?<span> <br /><br /></span>Basically, an oyster is sitting around minding its own business when a grain of sand gets inside its shell and lodges itself under its "mantle" (the membrane that makes up 90% of an oyster's body).<span> <br /><br /></span>That grain of sand irritates the Hell out of that oyster. It hurts, and the oyster tries to dislodge the grain of sand and spit it out. It rubs and rubs against that grain of sand trying to loosen it, and secretes a sort of slime around the grain of sand to make it smoother and easier to spit out.<span> <br /><br /></span>That slime forms a layer around the grain of sand that gets bigger and thicker the more the oyster tries, day after day, week after week, to dislodge it. Eventually, the slime hardens into a shell, and the oyster secretes more slime around that shell, still trying to dislodge the damn thing. The shell gets bigger and bigger as each layer of slime hardens over the previous layers.<span> <br /><br /></span>That is what pearls are, and how they are formed. Cut open any pearl, and you will find at the center the tiny grain of sand that got the whole thing started.<span> <br /><br /></span>Everyone tells you "the world is your oyster" when you start a business, and you know what? The world really IS your oyster. You are that grain of sand, and the world around you will do everything it can to spit you out because you are irritating the Hell out of it.<span> <br /><br /></span>When you launch your business, the world will not welcome you with open arms. You are disrupting the lives of many people who are comfortably minding their own business and heavily invested in the status quo. They won't like that, and they won't love you. They will hate you and your business. Some may play dirty tricks on you hoping to spit you out so they can go back to being comfortable, complacent and safe.<span> <br /><br /></span>Take <a href="https://en.wikipedia.org/wiki/Uber_(company)" target="_blank">Uber</a>, the ride sharing service. You love Uber, don't you? It's a lot easier than trying to find a cab. But a lot of taxi companies, limousine services and other local transportation players hate Uber - with a passion - because it threatens their whole business model.<span> <br /><br /></span>Throughout the world these people have brought lawsuits against Uber trying to get rid of it. They have spent millions in advertising and PR campaigns trying to persuade the public that they are not as safe with Uber drivers as they are with "licensed" taxi drivers (a dubious claim). They have filed charges with state and federal tax authorities claiming that Uber drivers are employees, not independent contractors, and that Uber should withhold taxes on everything their drivers make. <br /><br />All of their efforts are the layers of slime that turn a grain of sand into a pearl. And Uber is turning into a very beautiful pearl indeed. <br /><br />To build a successful entrepreneurial company you will not only have to cope with adversity. You will have to thrive on it. As a grain of sand, you must commit to being the biggest, baddest, pain-in-the-poop irritant this oyster has ever dealt with. And you don't do that by being nice to the oyster, or by being worried about what the oyster thinks of you. Your attitude must be, "the oyster be damned, I'm making a pearl." <br /><br />If your pearl is big and beautiful enough, someone, someday, will pay a ton of money for it.<br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2016 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC.Permission granted for use on DrLaura.com.
Staff
2016-11-22T16:54:00Z
Busyness Is Not Action
Staff
http://www.DrLaura.com/b/Busyness-Is-Not-Action/-359619332247039418.html
2016-11-16T16:06:00Z
2016-11-16T16:06:00Z
<p><strong><br />By Derek Rydall<br /></strong><a href="http://derekrydall.com/" target="_blank">derekrydall.com<br /></a></p>
<br />A busy person is not necessarily productive. If they're not aligned with their true purpose, focused on what's most important (but not necessarily urgent), what emerges is often stress, overwhelm, and more distraction. Have you ever gone through a busy day, only to fall into bed, exhausted, feeling like you didn't get anything significant done? <br /><br />Swirling around in that tornado of to-do's, you felt like you were accomplishing something, but you mistook the blur of busyness with authentic action. As <a href="https://en.wikipedia.org/wiki/Benjamin_Franklin" target="_blank">Benjamin Franklin</a> said, "<em>Never confuse motion with action</em>." This is sometimes a lack of clear vision or planning, putting us at the whim of every squeaky wheel and fire that needs putting out, and causing us to say yes to things that have little to do with our deeper purpose. But it's also a symptom of avoidance. <br /><br />Most people, when faced with a list of tasks will focus on the easiest thing first and work their way to the hardest-which they rarely arrive at. The false sense of satisfaction that comes from turning their to-do's into to-dones gives them an adrenaline high-and this can become addictive. But like all addictions, they're often there to numb our true feelings. And for the Task Addict, the deeper feelings are fear of failure and a sense of inadequacy. If they really take the bold action necessary to make progress, they'll have to face the unconscious belief that they're not good enough and their goals will never happen. <br /><br />Better to stay busy and hold onto hope than reach for that impossible dream. This can go on for years, difficult to diagnose. By all appearance the person seems to be doing all the right things. But upon closer inspection, they're often not doing the one or two highest impact things-the hard actions that would stretch them into the person who can make their dream a reality. They're walking around their vision, rather than taking a stand for it.<br /><br />When activating your emerging potential, it's sometimes about taking lots of little actions-but just as often it's about taking a few big ones. While sometimes you can grow incrementally, other times the only way to break free from the inertia of old patterns is to blast off like a rocket escaping earth's gravitational pull. If your vision is to be a professional writer, it might be committing to writing that book in 30 days instead of three months. <br /><br />If your vision is to get in shape, it could be joining a marathon club with a rigorous structure instead of joining a gym that you try to fit into your busy schedule. If a significant relationship is suffering, it might look like having that hard conversation and letting things fall apart temporarily, rather than scheduling another round of fun activities to distract you from the inevitable blowup or breakdown.<br /><br />As you contemplate your big vision, look honestly at what you're doing, and not doing, and ask if you're keeping up the illusion of trying so you have a good excuse for not risking. Then commit to letting at least one busy activity go-and taking one bold action. To your emergence! <br /><br /><br /><br /><span>Part of the new generation of spiritual visionaries and thought leaders, </span><strong><a class="yiv7447790320" title="Link: http://www.derekrydall.com" rel="nofollow" href="http://www.derekrydall.com/" target="_blank">Derek Rydall</a></strong><span> is the author of the best-seller </span><em class="yiv7447790320"><a class="yiv7447790320" title="Link: http://www.getemergencebook.com/" rel="nofollow" href="http://www.getemergencebook.com/" target="_blank">EMERGENCE: Seven Steps for Radical Life Change</a></em><span> and the world’s #1 expert on the </span><a id="yui_3_16_0_ym19_1_1479787555017_5864" class="yiv7447790320" rel="nofollow" href="https://www.facebook.com/DerekRydall" target="_blank">Law of Emergence.</a><span> He has touched hundreds of thousands with his message on finding your path, living your purpose and making an impact. Join his </span><a class="yiv7447790320" title="Link: https://itunes.apple.com/us/podcast/derek-rydalls-best-year-your/id878870353" rel="nofollow" href="https://itunes.apple.com/us/podcast/derek-rydalls-best-year-your/id878870353" target="_blank">EMERGENCE podcast on iTunes</a><span> to access dozens of free trainings, or get his free </span><a id="yui_3_16_0_ym19_1_1479787555017_5841" class="yiv7447790320" rel="nofollow" href="http://emergence.ontraport.com/tl/157" target="_blank">Law of Emergence eCourse</a><span>. </span>Permission granted for use on DrLaura.com.
<div><span style="font-family: "Helvetica Neue", "Segoe UI", Helvetica, Arial, "Lucida Grande", sans-serif; font-size: 13px;"><br /></span></div>
Staff
2016-11-16T16:06:00Z
Keeping The 'Bromance' Alive
Staff
http://www.DrLaura.com/b/Keeping-The-Bromance-Alive/383600564286575678.html
2016-10-31T15:06:00Z
2016-10-31T15:06:00Z
<p><strong><br />By Cliff Ennico<br /></strong>SucceedingInYourBusiness.com<br /><br /></p>
<blockquote>"<em>My brother and I formed a small business several years ago and it has done very well. We make enough to support ourselves and our families. </em><br /><br /><em>We have always been 50/50 owners of the business, and it has always worked out well. We even have equal titles: I am President and he is Chairman. My concern is for the future. We have been approached by a couple of investors, and while nobody has come up with an offer we are willing to accept, all of them have asked that one of us be the majority owner of the business so that decisions can be made if the two of us ever disagree. </em><br /><br /><em>Frankly, I don't see that ever happening, and if it did I would place family over business. But do you know any creative way we can make prospective investors happy on this point if and when the right offer comes along?</em>" </blockquote>
First of all, congratulations on building a successful business with your brother without any friction - that is a very rare achievement in this day and age. <br /><br />When small businesses are first launched, fights between the owners rarely happen. This is because there is usually nothing much to fight about at that point. <br /><br />As the business grows, however, the likelihood of disagreements between the owners multiplies exponentially because now there is something - usually a quite substantial something - to fight over. Each of the owners looks at the other and says to himself or herself "<em>I am the reason this business is successful, and this other person is getting 50% of the profits. That's not fair!</em>" Often that attitude is fueled by family members who were not present, or did not care much about the business, when it was first formed - spouses, boyfriends or girlfriends, children, in-laws. Everyone thinks they know what's best for a business once it's proven itself, and these unsolicited "<em>consultants</em>" can wreak havoc with an organization that isn't broken and doesn't need fixing. <br /><br />You are wise to place family first in a situation like this - your prospective investors should realize a big part of the business' success is your ability to work well together. But your investors are also wise to be cautious about a 50/50 ownership structure. If you and your brother ever disagree, there's a risk the business will be "<em>deadlocked</em>" and cannot move forward. <br /><br />There are no easy solutions here, but there are a number of ways to get around this you should consider, without having to flip a coin to decide who gets the 51% and who the 49% of this business. For example: <br /><br />
<ul>
<li>If the two of you are directors of the corporation or limited liability company (LLC) that runs the business, one of you could be given an extra vote "solely for the purpose of breaking any tie in a board vote" </li>
<br />
<li>You and your brother could sign a "<em>mediation agreemen</em>t" requiring any dispute between the two of you to be submitted to mediation by an acceptable third-party mediator (when I do these, I usually include the name of a person, and two alternates, who are "<em>pre-approved</em>" by the two of you - for example, your father, the company's accountant, or a mutual friend the two of you both respect) </li>
<br />
<li>You and your brother could agree to add the investor as a third board member - the risk here, though, is that gives your investor a "swing vote" that would enable him to play each of you off against the other </li>
<br />
<li>You could enter into an agreement dissolving your company if the two of you disagree and can't resolve the dispute within a reasonable time (for example, 90 days). <br /><br />I personally prefer the last choice, because it puts real pressure on both of you to resolve any disputes without the involvement of third parties. Neither of you will be willing to "<em>kill the goose that's laying the golden eggs</em>" supporting your families, and you will be more willing to compromise to keep the company alive. Also, this approach guarantees that both of you will be nagged to death by your spouses (if not your investors) not to be unreasonable. </li>
</ul>
<br />Of course, your investors may not be comfortable with such a ticking time bomb provision in the company paperwork because they are afraid they will be left out in the cold. One way to ease their concerns is to add a provision that if the "<em>dissolution</em>" provision is ever invoked the investor's ownership stake would be converted into debt, allowing them to get their investment money back before you and your brother get any of the proceeds. <br /><br />The most important thing for the two of you right now is to continue communicating closely on all management decisions the way you always have. In the words of country/western songwriter Keith Whitley, "<em>we disagree but in the end but there will never be two closer friends, and brotherly love is something we all need.</em>" <br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2016 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC.Permission granted for use on DrLaura.com.<br /><br /><img src="/images/blog/HappyBirthdayMy Love.jpg" alt="" />
Staff
2016-10-31T15:06:00Z
'The Future Is Profit': Not Just Another Startup Guide
Staff
http://www.DrLaura.com/b/The-Future-Is-Profit:-Not-Just-Another-Startup-Guide/59795999907074553.html
2016-10-17T18:58:00Z
2016-10-17T18:58:00Z
<p><strong><br />By Cliff Ennico<br /></strong>SucceedingInYourBusiness.com<br /><br /></p>
If you go to your local bookstore (they still exist, don't they?) or search for "<em>entrepreneur</em>" or "<em>small business</em>" on <a href="https://www.amazon.com/" target="_blank">Amazon.com</a>, you will find literally thousands of books and e-books on how to start a business.<span> <br /><br /></span>To paraphrase the Old Testament prophet <a href="https://en.wikipedia.org/wiki/Ecclesiastes" target="_blank">Ecclesiastes</a>: "<em>Of the making of startup success books there is no end</em>." Including - truth be told - a number I have written over the years.<span> <br /><br /></span>It's hard to say something new and different in a startup guide, but <a href="http://thepurposeisprofit.com/2016/09/11/startup-nation-interview-with-ed-skip-mclaughlin/" target="_blank">Ed "<em>Skip</em>" McLaughlin</a> and co-author <a href="https://wynlydecker.wordpress.com/" target="_blank">Wyn Lydecker</a> (a small business expert in her own right) have managed to do it, in "<em><a href="http://www.thepurposeisprofit.com" target="_blank">The Purpose is Profit: The Truth About Starting and Building Your Own Business</a></em>".<span> <br /><br /></span>The author has truly "<em>walked the walk</em>". McLaughlin is the founder of four businesses and is currently running <a href="http://bluesunsets.com/" target="_blank">Blue Sunsets LLC</a>, a real estate and angel investment firm. He bootstrapped his first business, <a href="http://unitedsi.com/" target="_blank">United Systems Integrators (USI) Corporation</a>, a corporate real estate outsourcing firm and grew it into an Inc. 500 company. In 2005 he sold USI to <a href="http://www.johnsoncontrols.com/" target="_blank">Johnson Controls</a>, a Fortune 100 company, and at that point, became CEO of that company's Global Workplace Business for the Americas. <br /><br /><span> </span>McLaughlin's life story is of interest to me for a couple of reasons. First, he is exactly as old as I am. Second, he got the entrepreneurial itch at exactly the same time I did, in 1990. <br /><br />Third, the "<em>tipping point</em>" came for him in a similar way it did me. A partner in a large real estate development firm, he came in to work one Saturday morning and found a spreadsheet left in an office copier showing he would be gradually phased out of the company's future operations. In my case, I was working as an inside counsel for a large financial institution. The senior lawyer who hired me, and who was my champion within the company, was reassigned to a special projects position and my "<em>package</em>" arrived soon afterwards. <span> <br /><br /></span>Most importantly, while McLaughlin's first venture, USI, was a colossal success (unlike mine), his followup entrepreneurial venture (like mine) was a total flop.<span> <br /><br /></span>In 1991, McLaughlin formed<a href="http://www.sigmacomm.com/" target="_blank"> Sigma Communications Inc</a>. with profits from USI and set out to publish a high-quality, quarterly magazine, <em>The National Register of Commercial Real Estate</em>, to share ideas for dealing with surplus real estate and to efficiently link real estate buyers and sellers through the magazine's centerpiece, <em>The Commercial Property Exchange</em>. The Exchange would list surplus commercial property that was for sale, for lease, or for sublease.<span> <br /><br /></span>In 1991, I set out to launch my own publishing company, Biennix Press, to create a catalogue of books, newsletters and other "<em>dead tree</em>" publications providing career advice and counseling to young lawyers, paralegals and legal professionals (don't bother looking for it online - it's long gone - although a couple of my books from that era are still in circulation).<span> <br /><br /></span>Looking back, McLaughlin realized that he made seven crucial errors with his venture: <br /><br /><ol>
<li>He had no competence, experience, or track record in publishing </li>
<br />
<li>He did not secure preorders to validate the business model</li>
<br />
<li>He let his passion blind him to the realities of the market</li>
<br />
<li>He did not plan adequate funding for the scope of the venture </li>
<br />
<li>He did not listen to the advice of advisors and industry experts </li>
<br />
<li>He did not budget adequate time to sell a new business model </li>
<br />
<li>He did not have sufficient resources to reach profitability</li>
</ol><span><br /></span>Looking back, I realize I made all seven of McLaughlin's mistakes with my own publishing venture. Although I got lucky: favorable reviews for our first book (a handbook on interviewing for a legal job) appeared in some high-profile publications targeting law students, young lawyers and (critically for us) law librarians, which generated significant sales for Biennix Press, at least for a while. <span> <br /><br /></span>Based on my own experience, I think McLaughlin should have added an eighth mistake - "<em>not taking seriously enough new developments and technologies that will make your business model obsolete</em>." He and I both started our businesses in the early 1990s. A few years later we all realized that the Internet was a disruptive technology that would dramatically change the world of book publishing. People wouldn't be looking to books and magazines for career information or property listings: the future was (and still is) online.<span> <br /><br /></span>I folded my business, because I didn't think I had the skills and competence to bring my "<em>career advice for lawyers</em>" concept into the 21st century. McLaughlin folded Sigma Communications for similar reasons.<br /><br /><span> </span>But McLaughlin found a buyer for his successful USI business (lucky sod), and his post-sale experiences are required reading for anyone who thinks "<em>selling out</em>" is all gravy.<span> <br /><br /></span>McLaughlin's experiences are the framework from which he builds his advice for startup entrepreneurs, his key point being "<em>don't do what you are passionate about; do what you know and are competent at doing</em>." Amen, brother.<br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2016 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC.Permission granted for use on DrLaura.com.
Staff
2016-10-17T18:58:00Z
Sometimes Ya Gotta Be Young
Staff
http://www.DrLaura.com/b/Sometimes-Ya-Gotta-Be-Young/-450573307441213886.html
2016-10-03T18:58:00Z
2016-10-03T18:58:00Z
<p><strong><br />By Cliff Ennico<br /></strong>SucceedingInYourBusiness.com<br /><br /></p>
<blockquote>"I was let go from a position with a high technology company earlier this spring.<span> <br /><br /></span>For the past couple of years, on and off, I have helped an entrepreneur in another state build a high technology consulting business. He has offered to sell the business to me for a ridiculously small amount of money, and I'm thinking this may well be my future.<span> <br /><br /></span>My problem here is my family: I have three children ages 5 to 12, and a spouse who did work until very recently but who has been laid off. <span> <br /><br /></span>I have an offer to go back to work full-time for another company in my field. I have mixed emotions about it, however. There's a good chance that even if I accept this offer I will be 'back on the streets' in a year or two. I really believe that if I buy the high technology consulting business I will be able to make a go of it in a year or two, and I have enough saved that I can support my family until that happens.<span> <br /><br /></span>Needless to say, however, my family is putting pressure on me to accept the full-time employment offer. I'm really torn here. What should I do?"</blockquote>
<br />No doubt, one of the hardest choices you will have to make in your career is that between a solid entrepreneurial opportunity (which this sounds like), and a loving family that just wants you to grind out the paychecks twice a month. Only the most heartless - or ruthless -- of individuals would put the business opportunity over their loved ones. If the entrepreneurial opportunity doesn't pan out, there's a better than average chance you will end up not only jobless, but divorced and homeless as well, with a custody agreement that allows you to see your children one weekend a month, if that.<span> <br /><br /></span>I used to wonder why so many successful tech entrepreneurs were young people in their 20's. Being younger and less experienced myself, I used to think it was because young people have no fear of failure, are willing to be more reckless about their futures, are more sophisticated in handling today's technology, etc.<span> <br /><br /></span>But now I know better. The reason so many brilliant new businesses are started by young people is . . . well . . . best put in the lyrics of an old Bob Dylan song: <em>"<a href="https://www.youtube.com/watch?v=dxLMr784l0Q" target="_blank">when you've got nuthin', you've got nuthin' to lose</a>.</em>"<span> <br /><br /></span>As horrible as it may sound, I've really come to believe that there are some things you can only do when you are in your 20's, before you have made the life choices that put limitations on what is possible - a house, a spouse, kids, a dog, etc. Once you make those choices, certain doors (not all of them, to be sure) slam shut permanently.<span> <br /><br /></span>A youngster in his or her 20's, perhaps a recent college graduate, can afford to spend six months to a year in their parents' basement, living on pizza and Red Bull(r), texting their friends every five minutes, and coming up (hopefully) with something that will revolutionize the world of technology.<span> <br /><br /></span>Once you are in your 30's, with a spouse and family, you can't just do that anymore. If I were to tell my spouse "<em>honey, I've decided that my true vocation in life is to become a poet. I'm quitting my job and spending the next six months of my life writing the next 'Leaves of Grass,' and you will need to support me while I do that</em>," I guarantee my readers will be looking at my obituary in next week's column.<span> <br /><br /></span>Dear reader, while you are far from old, I hate to be the one to tell you "<em>you're not a kid anymore</em>." The good news here is that you may be able to pursue both paths, at least for a while (in the words of the late <a href="https://en.wikipedia.org/wiki/Yogi_Berra" target="_blank">Yogi Berra</a>, "<em>when you come to a fork in the road, take it</em>"). If the owner of this business is offering a true "<em>fire sale"</em> price you can easily afford, and the business wouldn't compete with your full-time job, I would grab it. Grow the business in your spare time, and build a team of like-minded people with enough time to spare (and I would include at least one Millennial living in his parents' basement - a month's supply of pizza and Red Bull® doesn't cost all that much).<span> <br /><br /></span>Take the full-time offer, to keep peace in your family. If you haven't already done so, start creating college funds for your kids and pay off your mortgage so that in another decade or two you will be able to pursue your dreams without any friction on the home front.<span> <br /><br /></span>Until then, however, you have made your bed, and will have to lie in it. Put your family first, and save your entrepreneurial ambitions for your Midlife Crisis (trust me, it will come . . . ) <br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2016 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC.Permission granted for use on DrLaura.com.<br /><br /><img src="/images/blog/water.jpg" alt="" />
<p> </p>
Staff
2016-10-03T18:58:00Z
The Money is Hidden Inside You
Staff
http://www.DrLaura.com/b/The-Money-is-Hidden-Inside-You/498227061593674383.html
2016-09-20T02:08:00Z
2016-09-20T02:08:00Z
<p><strong><br />By Dan Castro<br /></strong><a href="http://hiddensolutions.com/" target="_blank">hiddensolutions.com</a><br /><br /></p>
There were millions upon millions of glittering lights shattering the night, tall neon-lit buildings reaching up to the sky, black limousines, bright red Ferraris and silver Porsches gliding slowly and elegantly down the main strip.<br />
<blockquote>As my buddy and I walked down the Las Vegas strip late one summer night, I asked, "<em>What would it be like to own all of this - to own all the money, land, buildings, and cars in the world?</em>" "<em>I can't even imagine,</em>" my friend replied. "<em>But what if you owned all of this, and you were the only person on the planet? Then what would it all be worth?</em>" My buddy just stared at me in stunned silence. </blockquote>
What is money really? What gives it its value? No other species on earth finds any value in gold, silver, diamonds, or least of all, in paper with official looking numbers printed on it. You can't eat it. You can't plant it. You can't mate with it. Gold does not make the best protective armor because it's too soft. It makes for lousy tips of spears and arrows. So where does the real value in money come from? <br /><br />Most people believe money exists separate and apart from themselves. That money is "out there" and is something to be obtained. They feel it has intrinsic value of its own, and in order to be wealthy, they must do something to "go get it." They feel it is like some kind of fruit hanging high in the branches of a distant tree - if only they could reach it. <br /><br />They feel poor without it and powerful with it. It is as though this external, tangible substance is their life force. Without it - they are empty - powerless. <br /><br />But the truth is that all the money, all the power, and all the wealth in the universe is not "<em>out there</em>" waiting to be gotten. It is within us, waiting to be released from our inner being, like the delicious, sweet juice squeezed from a watermelon. <br /> <br /><a href="https://en.wikipedia.org/wiki/Steve_Jobs" target="_blank">Steve Jobs</a>, <a href="https://en.wikipedia.org/wiki/Michael_Dell" target="_blank">Michael Dell</a>, <a href="https://en.wikipedia.org/wiki/Bill_Gates" target="_blank">Bill Gates</a>, <a href="https://en.wikipedia.org/wiki/Oprah_Winfrey" target="_blank">Oprah Winfrey</a>, <a href="https://en.wikipedia.org/wiki/Tyler_Perry" target="_blank">Tyler Perry</a>, <a href="https://en.wikipedia.org/wiki/Cathy_Hughes" target="_blank">Cathy Hughes</a>, <a href="https://en.wikipedia.org/wiki/Red_McCombs" target="_blank">Red McCombs</a>, <a href="https://en.wikipedia.org/wiki/J._K._Rowling" target="_blank">J.K. Rowling</a>, and<a href="https://en.wikipedia.org/wiki/Mark_Cuban" target="_blank"> Mark Cuban</a> did not go out and "<em>get</em>" money. They exuded it. It flowed out of them as from a hidden wellspring. They created value by what they did. They brought something of value to everyone around them. But that value started out - inside them, in their soul, in their spirit, in their brains.<br /><br />That's why there are millionaires who have lost everything and then came back and became millionaires yet again. Some have lost it all and won it all back several times. That's also why most people who win the lottery are poor again after just a few years. <br /><br />True wealth . . . always and only comes . . .from within.<br /><br />Entrepreneurs and innovators know how to create value out of thin air. They also know the difference between value and money. Value is something that makes someone else's life better. Money is the way we measure how we are doing at the task of making other people's lives better. It's how we keep score. It is merely a symbolic representation of value. <br /><br />Everything you need to create value out of thin air is already inside you. You have the ability to create wealth out of thin air by the things you do, the things you say, and the things you make. <br /><br />What are you doing right here, right now to make someone else's life better, simpler, more enjoyable, and less complicated? <br /><br />The money you are making today is simply the universe's way of giving you a report card to let you know how you're doing at those things. The things you do, the things you say, the things you make, and the things you own only have value if the people around you think they have value. <br /><br />So dig deep. The money is hidden inside you. <br /><br /><br /><br /><strong>Dan Castro</strong> is the award-winning author of '<em><a href="https://www.amazon.com/Hidden-Solutions-All-Around-You/dp/0991456408" target="_blank">HIDDEN SOLUTIONS ALL AROUND YOU: Why Some People Can See Them and Some Can't</a>'</em>. He is also an attorney, and a serial entrepreneur who has built a law firm, a real estate brokerage, a property management company, a loan servicing company, a marketing company, a real estate investment company, and a real estate investing boot camp. For more information visit <a href="http://hiddensolutions.com/" target="_blank">www.HiddenSolutions.com</a>. <span>Permission granted for use on DrLaura.com.<br /><br /></span><img src="/images/blog/2architect.jpg" alt="" /><br />
Staff
2016-09-20T02:08:00Z
A 'Pep Talk' for Tommorrow's Entrepreneures
Staff
http://www.DrLaura.com/b/A-Pep-Talk-for-Tommorrows-Entrepreneures/-635680046726312652.html
2016-08-29T19:51:00Z
2016-08-29T19:51:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /><br /><br /></a>For the past couple of years, I have taught an online course on "Entrepreneurship and Small Business Management" for a local university. The course, offered only to M.B.A. students in their final year, carries a pretty demanding workload. Students have to read an 800-page textbook, take a midterm exam (four essay questions), and prepare a business plan for a business of their choice, writing one plan section each week for eight weeks.<span> <br /><br /></span>While some of the business ideas the students come up with will never work in the real world, I never grade them on that. What I expect to see is detailed analysis of the market, competition, and financial requirements that will help them (or an investor) determine if the business is going to be successful or not.<span> <br /><br /></span>Every once in a while, I sense that the students aren't putting in the time necessary on their plans - this tends to take place especially around the time the midterm exam is due - and I feel the need to give them a "<em>pep talk</em>" to keep them motivated.<span> </span>Here is the e-mail I send my students when I feel the need to light a fire under their you-know-whats:<span> <br /></span><em> </em></p>
<blockquote><em>"I have to report that with one or two exceptions I am somewhat underwhelmed by the assignments most of you have submitted for the past couple of weeks. I realize these are tough assignments -- a new type of project for some of you -- and with the Midterm Exam looming I suspect many of you put your time in on that this past week rather than your business plan assignment (the midterm does have a much higher point score, and focusing on that is actually a very entrepreneurial approach to a class like this -- if you don't have the time to do everything perfectly, focus on the things that really count). <br /><br />But remember at all times that more than 90% of all small businesses fail in the first year or two. Don't fall in love with your idea - this is almost always the first step to business failure. You should be looking at your business with a cynical eye. Remember that if you decide to launch this business you will be working 24/7 for at least a year or two of your life trying to make it happen. You don't want to waste that much time, because nobody gives it back to you. Think about what you would do (or want to do) to someone who wasted that much of your time in a personal relationship! <br /><br />By all means try to sell your idea, but don't gloss over its faults and weaknesses -- criticize it ruthlessly and make the idea prove itself worthy to you (and to me). So far the business plan sections you have submitted (for the most part) have been way too cursory and the information presented too superficial. I want to see research in these sections, I want to see numbers, graphs and charts if they are available (and appropriate), I want to see you 'drilling down' into the details, I want to see how well you understand people and what motivates them, I want to see you citing to outside sources backing up your points, etc. <br /><br /> If this were an undergraduate business course I would let it slide to some extent, but this is an MBA course for senior-year students. You can -- and should -- do better. Be advised the grading in this class gets tougher and tougher as it progresses, and if I point out weaknesses in a particular section I will want to see it done better when the final business plan is submitted at the end of the course. <br /><br />Don't worry that by getting into the details you will show that the idea isn't viable. I'm not grading you on your idea or how I think it will do in the real world. I had a student last semester who actually ended up hating his/her original idea, but did such a brilliant job of demonstrating why the idea would likely never work (s)he still got an A for the course! <br /><br /> Please take this as a 'pep talk' rather than as a 'dressing down' -- I realize many of you have little time to spend researching markets, competitors and so forth but that's often what separates the "winners" from the "losers" in the real world of entrepreneurship. If this is a real idea you have for a business, and you want to see it succeed, you gotta be passionate enough about it to put in the hours. This is why so many very successful entrepreneurs are perceived as crazy (or sociopathic) by the outside world -- normal folks with normal routines do not become billionaires, build world-class businesses, transform society, or teach entrepreneurship at universities :-)."</em></blockquote>
<em> </em> <br />With luck, someone gave you a similar talk at some point in your life. If they didn't, I just did. <br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2016 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC.Permission granted for use on DrLaura.com.
<p><img src="/images/blog/SUCCESS.jpg" alt="" /></p>
Staff
2016-08-29T19:51:00Z
Can You Trust Financial Statements When Buying a Business?
Staff
http://www.DrLaura.com/b/Can-You-Trust-Financial-Statements-When-Buying-a-Business/517712703777821993.html
2016-08-22T20:33:00Z
2016-08-22T20:33:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /><br /></a><br />I don't often review new business books because, quite frankly, most of them don't have much to say (unless of course they're mine).<span> <br /><br /></span>But every once in a while a book comes along that's a real "game changer" - it challenges accepted wisdom, shows you a new way of looking at an old problem, or highlights some new development that will force you to change the way you do business. Such I book I feel I need to let my readers know about - especially if it agrees with a position I've been taking with my own clients for years.<span> <br /><br /></span>Such a book is "<em><a href="https://www.amazon.com/Accounting-Forward-Investors-Managers-Finance/dp/1119191092" target="_blank">The End of Accounting and the Path Forward for Investors and Manage</a>rs</em>," by Baruch Lev and Geng Fu (Wiley $29.99).<span> <br /><br /></span>Now, be forewarned: this is no "<em>beach read</em>". The authors are writing primarily for executives of big corporations and Wall Street players, not simple folks like us. There's a fair amount of MBA jargon. But if you have the patience to work through that, this book will change the way you look at financial statements, and accounting in general.<span> <br /><br /></span>People often prefer to buy a small business rather than start one from scratch because when you buy a business, you have greater certainty about how the business will perform. As long as you sign a nondisclosure agreement (<a href="https://en.wikipedia.org/wiki/Non-disclosure_agreement" target="_blank">NDA</a>), the business owners will share their financial statements, tax returns, Quickbooks files and other performance data that will help you determine how long it will take to recoup your initial investment in the business, calculate how much you and your partners will be able to take out of the business as compensation, and identify some things the current owners have been doing wrong that you may - may - be able to improve.<span> <br /><br /></span>For years I've been telling my clients to take a small business' financial statements with a grain (heck, a ton) of salt. First, many small business don't do proper books of account, either due to a lack of experience (if the company bookkeeper is Aunt Sally, watch out) or - trigger warning - the aim to deceive. Show me a liquor store with only one set of books and I will show you a liquor store that is probably struggling, although the owner should be put up for sainthood.<br /><br />But even the best financial statements have a flaw that can sometimes be fatal: they only look backwards. When you read financial statements, you are looking at how the business has performed, not how it will perform. Things may be happening in the company's industry, market or area of operation that may dramatically change those numbers after you buy the business, and the seller isn't obligated (at least legally) to disclose those "<em>contingencies</em>" to you.<span> <br /><br /></span>For example, a major corporation headquartered in my own home town recently announced it will move its offices out of state at the beginning of next year. If I were selling a small business in this town with a closing before year-end, would I tell the buyer about that? After all, the move has been publicized in all the local newspapers, and if the buyer sees "<em>for sale</em>" signs on every other home when driving through town he really should be asking some questions about that, shouldn't he?<span> <br /><br /></span>Messrs. Lev and Fu take this a step further, by arguing that the entire concept of "<em>reported earnings</em>" is antiquated and should be scrapped in favor of other metrics which are more predictive of a company's future success.<span> <br /><br /></span>Criticizing today's accounting rules, the authors point out (correctly) that reported earnings:<span> <br /> </span></p>
<ul>
<li>Do not take into account value-creating investments the company may have made in patents, brands, information technology and other intangibles, which the accounting rules treat as expenses like salaries or rent having no future benefit (one of the authors, Mr. Lev, has also written an excellent book on valuing intangible property) </li>
<br />
<li>Combine long-term items indicating future growth with one-time gains and losses (such as restructuring costs and foreign exchange losses)</li>
<br />
<li>Are based on subjective estimates and projections by the company's management (for example, depreciation, asset writeoffs, prospective bad debts, and future pension liabilities) that are prone to errors and manipulation. </li>
</ul>
<span><br /></span>The authors make a compelling argument that forward-looking metrics such as customer growth and turnover (churn) rate, test results of products under development, and contract renewal and cancellation rates are much more predictive of a company's success than reported earnings. And it is precisely these metrics that traditional accounting rules do not require to be included in financial statements.<span> <br /><br /></span>When buying a business, you should definitely tear apart the financial statements. But you should also spend some time hanging around in bookstores, libraries and coffee shops, chatting up the locals, and finding out what's really going on in town that might negatively affect the business' performance. <span> <br /><br /></span>Whenever you see a disconnect between reported financial information and the local gossip, believe the gossip every time. You will seldom go wrong. <br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2016 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC.Permission granted for use on DrLaura.com.
<p> </p>
Staff
2016-08-22T20:33:00Z
A Woodstock for Internet Retailers
Staff
http://www.DrLaura.com/b/A-Woodstock-for-Internet-Retailers/-310093774289601484.html
2016-08-08T18:39:00Z
2016-08-08T18:39:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /><br /></a><br />Ever since 2008, when eBay stopped doing its annual "eBay Live!" trade show, Internet retailers - people who sell merchandise either from their own websites or on one of the large online platforms such as eBay, Amazon and etsy - have been looking for its replacement: an annual event, conveniently located, where retailers can learn about the latest marketing and management strategies, meet companies that provide goods and services to help Internet retailers become more profitable, and (hey) just have a heck of a good time meeting and schmoozing with other retailers from around the country.</p>
<span><br /></span>For the past few years <a href="http://www.internetretailer.com" target="_blank">Internet Retailer magazine</a> has filled the void with its annual Internet Retailer Conference and Exposition (<a href="http://www.irce.com" target="_blank">IRCE</a>) in Chicago. I was privileged to speak at this year's IRCE conference last week, and my head is still spinning. If you sell merchandise on eBay or Amazon, are serious about building your online business, and can attend only one major conference each year, this is the one.<span> <br /><br /></span>As always when I attend a trade show, I spend a fair amount of time wandering around the exhibition hall looking for small companies with unique or different solutions to the problems Internet retailers commonly face.<span> <br /><br /></span>Here are some companies and solutions I learned about for the first time at the show:<span> <br /><br /></span>Don't you wish you could get more favorable reviews for your products on Amazon? Heck, don't you wish you could get ANY reviews on Amazon? <a href="http://www.sellerlabs.com/snagshout/" target="_blank">Snagshout</a>, a SellerLabs application, does it all for you: you list your products on Snagshout, shoppers purchase your product and test it, then write an honest review. There's no guarantee the review will be positive, but reviews generated through Snagshout stand a much better chance of being taken seriously as it's clear nobody is trying to "<em>game the system.</em>"<span> <br /><br /></span>Have you ever wondered what it is that makes consumers really want to buy anything? For years I thought it was all about fears and passions (see my YouTube video on "<em><a href="https://www.youtube.com/watch?v=mNe7hUAkx4M" target="_blank">How to Sell Just About Anything to Just About Anybody</a></em>"), but it seems <a href="http://www.meclabs.com" target="_blank">Meclabs</a>, a service of Marketing Sherpa has come up with a mathematical algorithm that analyzes the statistical probability of someone buying something from your Web store. <br />
<blockquote style="padding-left: 210px;">Their formula is:C - 4m + 3v = 2(i-f) - 2a<br /> </blockquote>
Where "C" is the probability of conversion, "m" is the motivation of the user (when they will buy), "v" is the clarity of the value proposition (why they buy), "i" is the incentive to take action, "f" is the friction created by the sales process, and "a" is the consumer's anxiety about entering the information.<span> <br /><br /></span>Got it? Well, I didn't get much beyond algebra myself, but their equation may just have solved one of the oldest riddles in all of business.<br /><br /><span> </span>Need to send a package to Kazakhstan in a hurry? <a href="http://www.shiptor.com" target="_blank">Shiptor</a> provides expedited shipping services to all of the former Soviet republics, as well as a lot of other places you can't pronounce. And no, the CEO's name isn't Borat.<span> <br /><br /></span>Do you hate processing merchandise returns, and dealing with customers who refuse or are unable to follow your returns policy? <a href="http://returnly.com" target="_blank">Returnly</a> takes all the hassles off your shoulders, helping you manage your time and avoid customer complaints.<span> <br /><br /></span>Somebody is looking for something on your site but you don't currently have it in stock. <a href="http://www.nchannel.com" target="_blank">NChannel</a> will automatically search 75 Internet platforms and post other listings of the item on your site, enabling you to "drop ship" the item so you don't lose the sale.<br /><br /><span> </span>Do you want to create a dynamic Internet marketing strategy but you simply hate - hate - having to write ad copy? <a href="http://www.bkacontent.com" target="_blank">BKA Content</a> is a copywriting service that specializes in Web retail campaigns.<span> <br /><br /></span>Looking for one stop shopping in a digital marketing agency? A company that can handle anything from content marketing to search engine optimization (SEO) to paid search to social media to lead generation to mobile to whatever is coming down the pike next? With a team of 25 professional digital marketers, <a href="http://www.webtalentmarketing.com" target="_blank">Web Talent Marketing</a> is poised to take the traditional "<em>Internet marketing</em>" consulting services to the next level.<span> <br /><br /></span>Are you thinking of sourcing merchandise in India but have no way of finding out if the goods are counterfeit? <a href="http://www.valleypointtechnologies.com" target="_blank">Valley Point Technologies</a> can not only track down the manufacturer or distributor in India but will check the merchandise in person and give a "<em>seal of approval</em>" if the product is genuine.<span> <br /><br /></span>Let's say you have a website offering all kinds of shoes. If a customer visits your site looking for sneakers, they don't want to see all the dress shoes and stiletto heels offered on your home page. Don't you wish you could automatically change your home page based on the customer's profile so it contained only listings of sneakers (and then snap back again when the customer leaves)? Wait no more. That technology now exists, and is offered by <a href="http://www.retailautomata.com" target="_blank">Retail Automata Analytics</a>. <br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.<br /><br /><img src="/images/blog/lemons.jpg" alt="" />
Staff
2016-08-08T18:39:00Z
When Was Your Last Stockholder Meeting?
Staff
http://www.DrLaura.com/b/When-Was-Your-Last-Stockholder-Meeting/601122504987031514.html
2016-07-25T20:02:00Z
2016-07-25T20:02:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /><br /></a><em> </em></p>
<blockquote><em>"My brother and I started a small retail business 10 years ago and it's done very well since then. </em><br /><br /><em>We always wanted this to be a family business, so several years ago we sold 25% of our company's stock to five family members, none of whom are actively involved in the business (although we have given their kids summer jobs every once in a while). </em><br /><br /><em>One of these stockholders died last year and left his stock to his three children. One of these children sent us a nasty letter recently demanding that we show our books and records to his accountant and accusing us of all kinds of nasty stuff. One of his more interesting allegations is that we've never held a meeting of stockholders since the company was formed. </em><br /><br /><em>My brother and I didn't think this was a requirement, especially for a small business like ours where everybody knows everyone's business anyway. We have never paid dividends on our stock, which is I think what this kid wants. How should we deal with this situation?</em>"</blockquote>
<br /><br />From your e-mail I am guessing that your business is set up as a <a href="https://en.wikipedia.org/wiki/Corporation" target="_blank">corporation</a> - if it's a <a href="https://en.wikipedia.org/wiki/Limited_liability_company" target="_blank">limited liability company</a> (LLC), the rules here may be slightly different. <br /><br />You made two serious mistakes when you sold a piece of your company to "<em>friends and family</em>" years ago. The first, is that you sold them shares that had <a href="http://www.investopedia.com/terms/v/votingright.asp" target="_blank">voting rights</a>. Voting shareholders in a corporation have tons of legal rights under <a href="https://en.wikipedia.org/wiki/United_States_corporate_law" target="_blank">state corporation laws</a>, including:<br /><br />
<ul>
<li>The right to call a shareholders' meeting at any time (if they hold at least 10% of the shares)</li>
<br />
<li>The right to inspect the company's books and records</li>
<br />
<li>(In some states) The right to see your annual financial statements and tax returns</li>
<br />
<li>The right to approve certain major corporate decisions such as mergers, acquisitions, offering of preferred stock, and amendments to the <a href="http://www.investopedia.com/terms/c/corporatecharter.asp" target="_blank">company's charter</a>. </li>
</ul>
<p><br />You should have issued them nonvoting shares that would have given them only a right to a percentage of the profits and losses of the business. <br /><br />The second mistake you made here (I suspect) was not having your stockholders sign a "<em><a href="https://en.wikipedia.org/wiki/Shareholders%27_agreement" target="_blank">stockholders' agreement</a></em>" or "<em><a href="https://en.wikipedia.org/wiki/Buy%E2%80%93sell_agreement" target="_blank">buy-sell agreemen</a>t</em>" restricting their ability to transfer shares to other people. That would have given you the right to buy back some or all of the shares your deceased family member left to his children, reducing the possibility that one of them would turn into a "<em>rabble rouser</em>". <br /><br />Take a look at your <a href="https://en.wikipedia.org/wiki/By-law" target="_blank">company's bylaws</a> (there should be a copy in the minute book your lawyer gave you when he set up the company). There probably is a provision in there requiring you to have a meeting of stockholders at least once a year, usually at a specific time of year. Even though the meeting can be held informally (most states now allow meetings by telephone conference calls and online Skype calls), it's something you just gotta do. <br /><br />When you first started this business, it was just you and your brother, so not having the meeting wasn't a big deal - the two of you could have just gone out for a burger and had the meeting at McDonald's. Once you brought in outside stockholders, though, you started having duties to them. And one of those duties was to have a meeting at least once a year to let them know how things were going. If they didn't show up at the meeting, that was their decision. <br /><br />So why is this stockholder so angry and giving you headaches? The answer, I think, lies in your message. You say at the very beginning that the company has "<em>done very well</em>" - meaning, I think, that it is currently profitable - yet at the very end you say you have "<em>never paid <a href="http://www.investopedia.com/terms/d/dividend.asp" target="_blank">dividends</a></em>" to your outside stockholders. <br /><br /> If I am right, this stockholder is probably upset that you have been using all of the company's profits to pay yourself and your brother salaries, leaving nothing left over for your outside stockholders. He wants to see the company books and records so he can determine whether or not your salaries are "<em>reasonable</em>" given the nature of the business, what other similar companies pay their officers and directors, and so forth. <br /><br />While a corporation's <a href="http://legal-dictionary.thefreedictionary.com/Director+(corporation)" target="_blank">directors</a> are never legally required to pay dividends to stockholders - they do so entirely in their "<em>business judgment</em>" which is protected by law - operating a company as if it were your personal piggy bank can get you into a lot of trouble with stockholders. I would recommend that you call a shareholders' meeting now so your disgruntled relative can air his grievances and you can get to the bottom of exactly what's bugging him. There are strict legal rules as to how the meeting should be conducted (for example, all stockholders must receive at least 10 days' advance notice of the meeting in most states), so talk to a competent business attorney before scheduling the meeting. <br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</p>
Staff
2016-07-25T20:02:00Z
America's Priorities: The Next 50 Years
Staff
http://www.DrLaura.com/b/Americas-Priorities:-The-Next-50-Years/-209077075149521799.html
2016-07-18T17:22:00Z
2016-07-18T17:22:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com</a><br /><br /></p>
<br />I have tried really hard to avoid commenting on politics and the Presidential election. I think I'm the only syndicated columnist in the United States right now who hasn't weighed in on one side or the other, and believe me, I will continue to resist the temptation to do so as long as I can. <br /><br />But the political atmosphere does impact the way in which you run your business. What Government does (or does not do) impacts all of us, and I'm sure both leading candidates will be pitching for the "small business vote" this fall. It will be interesting to hear what their advisors tell them small businesses want - hopefully some of them have run a business of their own before.<br /><br />Rather than talk about specific policy choices (which really don't matter until an elected official actually has to make them), I would like to hear the candidates talk more about America's long-term priorities. <br /><br />Here are some specific challenges I would like to hear them talk about.<br />
<ul>
<li><strong>Military Superiority.</strong> The world is a scarier place than it was 50 years ago. Russia and China no longer espouse communism as an ideology, but they and their satellites such as North Korea still pose the greatest dangers to world peace. Russian leader Vladimir Putin wants to rebuild the old Soviet Union, and China is hellbent on building its military with the goal of challenging America for world leadership. Add militant Islam to the mix, and one thing becomes clear: America must maintain its military superiority at all costs.Right now America has the strongest, most technologically-advanced military on Earth, but that won't continue as long as fewer than 1% of Americans are connected to the military. How can we beef up our defenses without reinstating the military draft? </li>
<br />
<li><strong>Technological Leadership</strong>. Over the past 50 years America has given up its leadership in manufacturing, some say permanently, to Asia. In a country where nobody manufactures anything, the only hope of survival is to become the world's "research and development" department, providing the technological innovations and cutting-edge intellectual property that the manufacturing nations cannot (at least for now) develop on their own.If Silicon Valley guru <a href="https://en.wikipedia.org/wiki/Marc_Andreessen" target="_blank">Marc Andreesen</a> is correct that "software is eating the world," then America needs to focus all its energies on being the most innovative, entrepreneurial nation on Earth. Falling behind is not an option.</li>
<br />
<li><strong>Reforming Education</strong>. Our education system is a relic of America's agricultural past, and needs to be completely rethought. Education must be year-round, and must be considered a lifelong enterprise, not something you do for the first 21 years of your life.Business, economics, <a href="http://www.ed.gov/stem" target="_blank">STEM</a> (science, technology, engineering, mathematics) and other technology-driven subjects (such as computer coding) should drive the curriculum. Teachers should be paid better, given more respect as professionals, and held more accountable for results. Career paths in education should be based on competition and measurable performance, not tenure or union membership.</li>
<br />
<li><strong>Creating Middle-Class Jobs Outside of Technology</strong>. Not everyone is meant to work in STEM fields. As technology becomes more sophisticated and takes over more unskilled and semi-skilled jobs, we need to give some thought to finding well-paying private sector jobs (not low-level service jobs) for people without STEM backgrounds. If we don't, there will be only three places for them to go: Government bureaucracies, the military, or the dole.</li>
<br />
<li><strong>Energy and the Environment</strong>. <a href="https://en.wikipedia.org/wiki/Global_warming" target="_blank">Global warming</a> is real, and needs to be dealt with, but nobody wants to give up their smartphones, driverless cars, drones and other technological marvels that no doubt will consume electricity like Dracula sucks blood.<br /><br />Solar, wind and other sustainable energy sources are too far in the future. We need to identify clean sources of energy that are available now, do not contribute to global warming and can "bridge the gap" until solar, wind, etc. become viable. Even if that means re-embracing nuclear power.</li>
<br />
<li><strong>Redefining Our National Identity and Value System</strong>. One of America's greatest strengths has always been its ethnic diversity. But that diversity has always - until recently - been rooted in a common culture (based on a shared language, European heritage, Anglo-Saxon institutions and Judeo-Christian religious values) that many people feel is threatened by tidal waves of non-Western immigrants. If America hopes to survive the next 50 years, "hyphenated Americans" must disappear. We need to focus less on "centrifugal" forces in our society - the racial, ethnic, sexual, religious and other tribal "identities" that separate us from each other - and more on "centripetal" forces - <strong>the values we hold in common that make us Americans and keep us working together despite our country's many imperfections. Even if we have to invent some of them from scratch.</strong></li>
</ul>
<br />As the Bible and Abe Lincoln remind us, "a house divided against itself cannot stand", and no country - however open and flexible to change - can be all things to all people. A country that stands for "anything and everything" ultimately stands for nothing. No one will fight or die for it. <br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.<br /><br /><img src="/images/blog/GRASS2.jpg" alt="" />
Staff
2016-07-18T17:22:00Z
Understanding The Millennials
Staff
http://www.DrLaura.com/b/Understanding-The-Millennials/-387869611122935138.html
2016-06-27T17:22:00Z
2016-06-27T17:22:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com</a><br /><br /></p>
<p>I was amused to read, in the <a href="http://www.wsj.com/" target="_blank">Wall Street Journal</a> last week, an article about a human resources consultant who has developed a popular (and apparently very lucrative) program for corporate HR executives on "<em>understanding the Millennial generation</em>." <br /><br />Apparently this has become a recognized and respectable field for consultants. A quick Google search for "<em>millennial consultant</em>" (in quotes) comes up with 4,740 hits. <br /><br />What makes this amusing (at least to me), is that hardly any of these people are themselves members of the Millennial generation. The subject of the Journal article - by her own admission -- is 41 years old and considers herself <a href="https://en.wikipedia.org/wiki/Generation_X" target="_blank">Gen X</a>. <br /><br />Personally, I think it's pompous and pretentious for any generation to claim to crawl inside the mind of any other generation and tell you what goes on there. Although I do understand the temptation: it's hard to find Millennials willing to talk about their generational quirks because, frankly, they don't talk at all (maybe if you texted them?). Also, I have to admit that when a person of the male persuasion reaches a certain age, there is nothing - and I mean nothing - more pleasurable, satisfying or just plain fun than cornering some young whippersnapper and boring the living crap out of him. <br /><br />In my own case, as a professional speaker whose audiences are getting younger by the minute, I am forced sometimes to engage in cultural anthropology on 80 million of my fellow Americans so that I don't come across as irrelevant or unsympathetic. <br /><br /> I subscribe to "<a href="http://www.ew.com/" target="_blank">Entertainment Weekly</a>" magazine (the pop culture bible), and listen to Top 40 radio stations at least weekly. I am almost - almost -at the point where I can tell <a href="http://taylorswift.com/" target="_blank">Taylor Swift</a>, <a href="http://www.katyperry.com/" target="_blank">Katy Perry</a>, <a href="https://www.selenagomez.com/" target="_blank">Selena Gomez</a>, <a href="http://www.meghan-trainor.com/" target="_blank">Meghan Trainor</a> and <a href="https://www.gwenstefani.com/" target="_blank">Gwen Stefani</a> apart without looking at the text ID scroll on my car radio. (<a href="http://adele.com/" target="_blank">Adele</a> is much easier to recognize because of her weird accent that turns "young" into "yehng" and "breakfast" into "brakefist"). <br /><br />Based on my admittedly nonscientific research to date, I can report one interesting - and rather troubling - observation about Millennials: <br /><br />The boys and the girls don't seem to like each other very much. <br /><br />My Exhibit A is Meghan Trainor's current hit "<a href="https://www.youtube.com/watch?v=cMTAUr3Nm6I" target="_blank">My Name is No.</a>" It's basically a cute EDM number about a girl resisting the unwanted advances of some bozo geek at a dance club, on the grounds that "if I want a man, then I'ma get a man, but it's never my priority." <br /> <br />Okay, so far so good - your typical basic female empowerment song about women taking more control over their lives. Nothing new here - watch any recent <a href="http://www.disney.com/" target="_blank">Disney</a> movie (men are either jerks or evil, so trust only your sistahs). But listen carefully, especially towards the end, and there's a subtle change in the lyrics: the singer, apparently to herself, starts repeating like a mantra "I'm feeling untouchable, untouchable" over and over again. <br /><br />It seems that Ms. Trainor (she of the basso profundo) is saying something more than "dude, get lost" to a specific individual. She maybe - just maybe -- is rejecting the Y chromosome entirely, saying "I am impervious to male charms, period". <br /><br />Maybe I'm reading too much into that, but now comes Exhibit B - the male riposte to Ms. Trainor's anthem - in the form of <a href="http://www.justinbiebermusic.com/" target="_blank">Justin Bieber</a>'s new song "<a href="https://www.youtube.com/watch?v=oyEuk8j8imI" target="_blank">Love Yourself</a>." <br /><br />(Did you ever think a column for entrepreneurs would shout out to a guy who relieves himself in mop buckets?)<br /><br /> No ambiguity at all in these lyrics: this is a "put down" song of the first order, with the Biebs telling his former flame exactly what he (and his mother) think of her, culminating in the memorable refrain "if you like the way you look that much, oh baby, you should go and love yourself." <br /><br />Knowing what little I know about the boy who wants to bronze his you-know-what (does this kid EVER smile?), "love" probably wasn't his first choice of lyric. <br /><br />And these are not isolated samplings. Seriously, listen to the Top 40. In literally half of these songs, somebody is telling somebody else off, putting someone down, or asserting themselves in such a way as to put others in the background (a practice one of my Millennial contacts - clearly a traitor to his class -- refers to as "throwing shade"). The idea that romance may involve a degree of sentimentality - or require the object of someone's affections to show humility or vulnerability in the face of a powerful human emotion - just doesn't happen in the world of these songs. <br /><br />One only hopes that <a href="https://en.wikipedia.org/wiki/Duke_Ellington" target="_blank">Duke Ellington</a> was right when he said "in music there is no mischief." If these songs are any indication of how Millennials really look at each other, the long-vaunted "battle between the sexes" may soon become a shooting war. <br /><br />But maybe we don't have to worry. Here's the headline from another recent Wall Street Journal article: "scientists grow embryos for up to 13 days outside the uterus." Once again, where culture fails, science comes to the rescue. </p>
<p><br /><br /></p>
<strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2016-06-27T17:22:00Z
Time Management For Solo Consultants
Staff
http://www.DrLaura.com/b/Time-Management-For-Solo-Consultants/386137129506129659.html
2016-06-20T18:49:00Z
2016-06-20T18:49:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com</a><br /><br /></p>
<p>"I have a one-person management consulting practice. I'm doing extremely well since my expertise is in great demand. Maybe a little too well.<span> <br /><br /></span>I'm deluged with phone calls and e-mails - 40 or more each day, every single one of which must be responded to.<span> <br /><br /></span>I want to give my clients the best and most responsive service I possibly can, but it's getting a bit overwhelming now and I don't want to hire people. <span> <br /><br /></span>Since it seems you operate the same way I do, do you have any good suggestions as to how I can keep everybody happy and still stay sane?"<span> <br /><br /></span>My answer can be summed up in two words: "not really."<span> <br /><br /></span>After 36 years of practicing law, more than 20 of those as a lone wolf working out of a home office in bunny slippers and a bathrobe, I can tell you one thing about time management: once you reach a certain point, it becomes nearly impossible to pull off. It becomes a little bit like that Abe Lincoln quote: you can keep all of the people happy some of the time, you can keep some of the people happy all of the time, but you can't keep all of the people happy all of the time.<span> <br /><br /></span>Like any solo professional, I can't answer every e-mail and voice message in real time. While I can certainly work on several projects simultaneously, I can only work on one thing at any specific moment in time. Multitasking is a myth (especially for those of us with Y chromosomes). There are no unimportant clients, and sometimes the most urgent matter isn't the most important thing you should be doing at a particular moment.<br /><br /><span> </span>Having said that, here are some time management principles I currently use to keep things under control. None of these are perfect, but at least they will keep you from committing malpractice or ticking off an important client (or worse, your spouse).<span> <br /><br /><br /></span><strong>"Segment" Your Work Day.</strong> Block off certain times each day when you don't answer e-mails or voice messages. For me those times are 8 a.m. to 11 a.m., and again from 2 p.m. to 4 p.m. During those blocks of time I am drafting contracts and correspondence, or writing books and articles. If it's right before a big closing, I can be interrupted for messages relating to that transaction, but nothing else. When you start your day, pick one of the projects on your "to do" list, start it and finish it before you even think about e-mails and voice-mails.<span> <br /><br /></span>Don't fall into the trap of spending so much time each day answering voice messages and e-mails that the only time available to do "real work" is evenings and weekends. That is the road to serfdom.<span> <br /><br /><br /></span><strong>"Triaging" Your e-Mail Inbox.</strong> E-mail is the biggest enemy of successful time management. You have no control over your inbox, and people expect instantaneous responses to their messages. <span> <br /><br /></span>Each time you open your inbox, take a quick look at all of the new messages - don't start answering them yet - and do "triage" (from an old French word meaning "to divide into three"), tagging them as either "should be answered immediately," "should be answered eventually," and "should not be answered ever." Everybody has their own triage method: here's mine.<span> <br /><br /></span>When I open my inbox, I first delete all of the obvious junk messages. I don't even look at them. The really weird ones I mark as "spam" so I never see them again. <br /><br />Next, I look for messages relating to projects I am currently working on for clients. I answer these quickly, in a sentence or two, if I can. If I can't I ask to schedule a phone call to discuss the subject of the email. I don't like engaging in long winded e-mail exchanges with clients and other attorneys - on the rare occasion where I have to do that, I make sure to charge for my time.<span> <br /><br /><br /></span>Finally, I look for messages relating to new projects or clients. I give priority to:</p>
<ol>
<li>New projects requested by existing or former clients.</li>
<br />
<li>New projects requested by new clients that are relatively easy for me to do and will generate significant revenue.</li>
<br />
<li>Opportunities for speaking engagements and writing projects (preferably with compensation) that will help me promote all the things I do.</li>
<br />
<li>Questions I can answer in this column. </li>
</ol><span><br /></span>That leaves all the rest of the voice-mails and e-mails, which generally consist of:<span> </span>
<ul>
<li>Requests for free legal advice</li>
<br />
<li>Requests for services I cannot render because I don't know the area of law, the reward just isn't there, or because I'm not admitted to practice where the sender is located. </li>
</ul>
If I have time, I may refer one or two of these folks to other attorneys (especially those in the second group), but mostly I just discard them, secure in the knowledge there will be more in my inbox tomorrow.
<p> </p>
<strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2016-06-20T18:49:00Z
The Graduation Speech Your Kids Really, REALLY Need to Hear
Staff
http://www.DrLaura.com/b/The-Graduation-Speech-Your-Kids-Really,-REALLY-Need-to-Hear/-20915996858606733.html
2016-06-06T19:49:00Z
2016-06-06T19:49:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com</a><br /><br /><br /><em>This column, which originally appeared in May 2009, is one of the most requested and reprinted "Succeeding in Your Business" columns, especially during "graduation season."</em><br /><br /></p>
<blockquote>Members of the Class of 2016:<span> <br /><br /></span>I was sorry to hear that the reality TV star who was to have been your commencement speaker today had to bow out at the last minute. I was delighted, however, when the Trustees called me an hour ago and asked me to fill in.<br /><br /><span> </span>Now, I've never done this before, and I wasn't given a whole lot of guidance, except to tell you to "<em>follow your dreams</em>" and "<em>reach for the stars</em>". Apparently there's a federal law requiring those statements to be included in all graduation speeches.<span> <br /><br /></span>While I know some of you already have jobs and some (OK most of you) do not, I know that all of you are wondering today what your lives are going to be like. <span> <br /><br /></span>I have two pieces of information for you. They are not fun to talk about, but I feel you need to hear them, and no better time than today. First, whatever dreams you hope to accomplish in your lives, you won't be able to achieve them until you have first achieved financial security for yourself and your loved ones. For most of you, unless you were born wealthy (and sometimes even then), finding and holding onto that financial security will be the primary, if not the only, thing you will spend time on for the next 50 years.<span> <br /><br /></span>The second thing is that it has never been a more difficult time to make a decent living in America. I'm not just talking about the current recession or the high unemployment rate. I'm talking about some longer-lasting, structural changes in our economy.<span> <br /><br /></span>For your grandparents, it was easy. You signed up with a large corporation, worked your way up the corporate ladder, and retired at age 65 with a pension, Social Security and a gold watch. You can forget about doing that today.<span> <br /><br /></span>Years ago, when America dominated the world economy, corporations viewed employees as scarce assets to be cultivated. In today's brutally competitive global economy, they view employees as costs to be reduced or eliminated. If you can buy technology to do the work employees are doing, you buy the computers and fire the employees. If you must hire people to do a job, you hire the cheapest people you can in developing nations. And if you really must hire Americans, you "outsource" them as independent contractors rather than employees. That way you don't have to pay them benefits. If you work for a large corporation today, odds are you will be unemployed in a few years.<span> <br /><br /></span>Social Security, Medicare and other government programs that helped your parents and grandparents probably won't be there when you are ready for them, at least not in their current forms. <span> <br /><br /></span>And if you think you can scale back your expectations and join the blue-collar workforce, there's a massive wave of immigrants from Asia, Africa and Latin America who are only too willing to take these jobs for salaries you won't want to accept.<span> <br /><br /></span>Ladies and gentlemen, there is only one person you can rely on to help you build your future and success, and that is you. One day, you will find that you are no longer employable, and you will have to build your own career or business. That moment of realization may happen next year; it may not happen until you turn 50. But it will happen someday, so start planning now to take control of your income and your life. You will need to become an entrepreneur, whether you like it or not.<span> <br /><br /></span>I know all of you want to do good for the world, and that's admirable. But charity requires money too - ask the President of this college why he spends so much of his time raising money from alumni/ae. <br /><br />If you want to do good for the world, start a business. Provide solutions to people's problems they are willing to pay for, and hire people to help you. Succeed, and your business will make the world a better place. Guaranteed. What is more, you will achieve the financial security you need, and whatever money you don't need you can use to make the world an even better place. <span> <br /><br /></span>I have had the pleasure of working with over 15,000 business owners in my career. They come from all walks of life and backgrounds. The beauty of this wonderful country of ours is that anyone - I mean anyone - can succeed in business with the right training, the right outlook on life, and the courage and determination to do what others are too squeamish or hesitant to accomplish. <span> <br /><br /></span>So by all means reach for the stars and follow your dreams, for without faith, hope and passion you will never succeed, even if you're as smart as Einstein. <span> <br /><br /></span>Just whatever you do, don't run out of money.
<p> </p>
</blockquote>
<strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2016-06-06T19:49:00Z
The Fundamental Things (STILL) Apply
Staff
http://www.DrLaura.com/b/The-Fundamental-Things-STILL-Apply/-511886674609521219.html
2016-05-30T16:53:00Z
2016-05-30T16:53:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com</a><br /><br /><br />Last year, they shut down the Post Office in our town.<span> <br /><br /></span>Well, not actually . . . what they did was consolidate three branch offices into a single Post Office, which they located in a part of town that's absolutely impossible to get to, especially during rush hours.<span> <br /><br /></span>What's interesting is what they did with the Post Office location they shut down. Rather than use it for another governmental purpose, they sold it to a local developer who renovated the building, divided it in half, and leased it to two tenants:<span> <br /> </span></p>
<ul>
<li>A supermarket offering all-organic, locally sourced produce, meat and other basic groceries (part of a national chain that competes with the likes of Whole Foods, Sprouts and Trader Joe's)</li>
<br />
<li>What we used to call a "<em>greasy spoon</em>" restaurant offering hamburgers, fries and other comestibles that are great (I'm told) when you are suffering from a hangover.</li>
</ul>
Both tenants opened their doors about six months ago. Last week, I read in my local newspaper that the "fresh food" supermarket had closed its doors. The greasy hamburger joint, on the other hand, is thriving and planning to open a second location elsewhere in town.<span> <br /><br /></span>The supermarket advertised aggressively in local media, through direct mail and in <a href="https://www.valpak.com/" target="_blank">Val-Paks</a>, offering discount coupons of as much as $15 off of some items. I personally never visited the store (it's too far away from where I live), but friends and neighbors who had said the store felt "cramped" and priced their merchandise way too high (who discounts groceries by $15?). The fact that Whole Foods and Trader Joe's have locations in town didn't exactly help.<span> <br /><br /></span> As for the burger joint, there are several fast-food hamburger restaurants in town, including all of the national franchises, and a fair number of Irish-themed pubs and other "red meat" oriented eateries. As it happens, I have visited the burger joint - their prices aren't cheap, although the burgers are terrific, really gourmet "steak burgers" with all the trimmings.<span> <br /><br /></span>What exactly went on here? In my opinion, this is a classic case of how the fundamental laws of market economics stubbornly persist even in the so-called "new economy".<span> <br /><br /></span>If you took a basic economics course in high school or college (<a href="https://en.wikipedia.org/wiki/Microeconomics">microeconomics</a>, to be exact), the very first thing you learned were the laws of supply and demand in a market-driven economy. When demand exceeds supply, prices go up. When supply exceeds demand, prices go down. Demand decreases when prices are raised significantly. Demand increases when prices are decreased. <span> <br /><br /></span>Whenever I visit my local (regular, not "fresh") supermarket, and want to get to the milk, bread, butter, orange juice and other "basics" quickly - you do know, of course, that all supermarkets locate these at the very back of the store so you have to walk the entire length of the floor, picking up impulse purchases along the way? - I always go down the organic food aisle, because there's never anyone there and I know I won't be tempted to buy anything there.<span> <br /><br /></span>Lest anyone accuse me of being overly cynical (horrors!), there's no question we all need to eat healthier, fresh, organic, non-GMO, sustainable, low-calorie, low-fat, throw-in-your-favorite-buzzword-here food. People aren't stupid. They know the stuff at the burger joint will not help them live longer. If organic food cost the same as the "usual junk," I have no doubt many if not most people would opt for the organic, and that "fresh food" supermarket would have wiped out its local competition.<span> <br /><br /></span>Sadly, as we all know, organic, "healthy" food comes at a premium price, and people don't want to pay it. They want to live and eat healthier, but they also are value- and cost-conscious. The burger joint offers good value for what they're selling; the "fresh food" supermarket simply didn't.<span> <br /><br /></span>And we're not just talking about food here. Recent articles in The Wall Street Journal indicate that sales of gas-guzzling SUVs and other large vehicles are way up because of today's historically low gas prices. Now, we all know that sooner or later gas prices will go up, and these larger vehicles are terrible choices for the environment. But man, do they look good on the highway, and you feel safer riding up higher surrounded by ten tons of metal, don't you?<span> <br /><br /></span>Sometimes the only way to get people to do the right thing is for the Government to mandate it. But without a solid economic incentive, even the Government can't change people's behavior. Look around your neighborhood. A lot of people are putting solar panels on their roof, seriously uglying up their homes and jeopardizing their "curb appeal". Why? Because of global warming? Or because of the federal solar energy tax credit and the potential for lower utility bills?<span> <br /><br /></span>Remember that relocated Post Office in my town? The local UPS Stores and FedEx outlets have reported a significant increase in volume since that happened. Yes, they're more expensive than the Post Office, but they're more conveniently located and you get in and out of there much faster. <span> <br /><br /></span>Now, if only they could do something like that for organic produce . . . <br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2016-05-30T16:53:00Z
Getting Your Nonprofit Approved By The IRS
Staff
http://www.DrLaura.com/b/Getting-Your-Nonprofit-Approved-By-The-IRS/201979282571524393.html
2016-05-23T16:53:00Z
2016-05-23T16:53:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://www.SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com</a><br /><br /><br />“I am trying to start a nonprofit organization to raise money for a local institution that has lost its state funding due to budget cuts.<span> <br /><br /></span>I formed a limited liability company (LLC), which went through without difficulty, but I am having trouble obtaining tax-exempt status from the IRS. I filed the application (<a href="https://www.irs.gov/uac/about-form-1023" target="_blank">Form 1023</a>) a while back, but they keep asking for more and more information which takes me a long time to pull together. <span> <br /><br /></span>Can you please tell me what I’m doing wrong here, and why do they make it so hard for people to do good?”<span> <br /><br /></span>Lately it seems like everybody’s forming nonprofit organizations, and the IRS is being overwhelmed with requests for certification as a “<a href="https://www.irs.gov/charities-non-profits/charitable-organizations/public-charities" target="_blank">public charity</a>” under <a href="https://www.irs.gov/charities-non-profits/charitable-organizations/exemption-requirements-section-501-c-3-organizations" target="_blank">Section 501(c)(3)</a> of the Internal Revenue Code. I understand they are receiving 20 to 30 applications a day at their processing office in Louisville, Kentucky, and the wait time for approval (even if your application is perfect) can be as long as six months.<span> <br /><br /></span>The fact that you are getting requests for additional information means either that your application wasn’t complete when it was initially filed, or the IRS isn’t buying your charitable purpose and is “burying you in paperwork” so that you will eventually withdraw your application and save them the trouble of rejecting you. <span> <br /><br /></span>Here are some of the most common reasons the IRS holds up your application.<span> <br /><br /></span><strong>They Prefer Corporations. </strong> While legally there’s no reason a charitable organization can’t be formed as an LLC, the IRS does prefer that you be formed as a nonstock or not-for-profit corporation, quite simply because most applicants for tax-exempt status are corporations and they understand them better. Every state has a detailed statute spelling out the rights and duties of board members, directors, officers and other key players in not-for-profit corporations, while the rules for nonprofit LLCs are still evolving. Consider converting your LLC into a nonprofit corporation – a fairly easy procedure in most states.<span> <br /><br /></span><strong>Your Charity Might Not be “Public” Enough.</strong> It sounds as if your organization may not be benefiting the general public, as is required for a Section 501(c)(3) <a href="https://en.wikipedia.org/wiki/Charitable_organization" target="_blank">charitable organization</a>. Section 501(c) allows tax exemption for over 30 different types of organizations, and you may want to review them with your attorney to see if another subsection might be a better “fit” (see Chapter 4 of IRS Publication 557, available online at <a href="http://www.irs.gov/publications/p557/ch04.html" target="_blank">www.irs.gov/publications/p557/ch04.html</a>). Keep in mind, however, that you will not be able to accept tax-deductible donations unless you are a “public” charity under Section 501(c)(3).<span> <br /><br /></span><strong>Your Activities Are Not Specific Enough.</strong> The IRS is not comfortable with vague generalities. Your <a href="https://en.wikipedia.org/wiki/Articles_of_organization" target="_blank">Articles of Organization</a> should specify clearly and in detail exactly what types of activities the organization will conduct to further its exempt purpose. Since your principal purpose is raising funds for another (hopefully tax-exempt) organization, your application needs to spell out exactly what fund-raising activities you will conduct, who you will solicit for donations and government grants, and what specific activities you will fund.<span> <br /><br /></span>If the organization you want to support is not a Section 501(c)(3) public charity, you may not be eligible for tax-exempt status at all. Check the IRS’ “<a href="http://www.irs.gov/Charities-&-Non-Profits/Exempt-Organizations-Select-Check" target="_blank">Exempt Organizations Select Check</a>” database and make sure the organization’s name appears there.<span> <br /><br /></span><strong>Your Organizational Documents are Incomplete.</strong> Your LLC Articles of Organization need to contain specific language required by the IRS relating to:</p>
<ul>
<li>The fact that all profits will be applied to fulfill the organization’s exempt purpose.</li>
<br />
<li>The fact that the organization cannot engage in political activity (with certain limited exceptions).</li>
<br />
<li>How funds will be distributed when the organization ceases its activity. </li>
</ul>
If your organization has been in existence for a while, the IRS may also want to see copies of all board resolutions you have adopted to date.<br />
<ul>
</ul>
<p><br /><span> </span><strong>Your Financial Projections Don’t Go Far Enough into the Future.</strong> Under a recent amendment to Form 1023, a startup charity must project income, expenses, assets and liabilities for the next three fiscal years (increased from two years). Failing to provide the third year of projections can lead to time-consuming delays in the approval process.<span> <br /><br /></span><strong>You Forgot to Attach Your “Policy” Documents.</strong> The IRS requires all 501(c)(3) exempt organizations to adopt two policies:</p>
<ul>
<li>A “compensation policy” showing how the salaries of the organization’s officers and directors will be determined</li>
<br />
<li>A “conflict of interest policy” showing how the organization will handle financial transactions with its officers, directors and other related parties.</li>
</ul>
There are numerous sample policy documents available online (a typical compensation policy can be found at <a href="http://www.publiccounsel.org/tools/assets/files/CompPolicy.doc" target="_blank">www.publiccounsel.org/tools/assets/files/CompPolicy.doc</a>, while sample conflicts of interest policies can be found at <a href="http://www.nonprofitrisk.org/advice/samples/ConflictPolicy.doc" target="_blank">www.nonprofitrisk.org/advice/samples/ConflictPolicy.doc</a>).<span> </span>To find out exactly why the IRS is giving you the runaround, you should retain an attorney to help you clean up the application and re-submit it to the IRS along with a “power of attorney” form (<a href="https://www.irs.gov/instructions/i2848/" target="_blank">IRS Form 2848</a>) so the IRS will contact your attorney directly if they have any further questions. <br /> <br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2016-05-23T16:53:00Z
New Tools For Online Retailers
Staff
http://www.DrLaura.com/b/New-Tools-For-Online-Retailers/-401016676210328321.html
2016-05-16T15:59:00Z
2016-05-16T15:59:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /><br /></a></p>
Twice a year I have the privilege of speaking at a leading conference and exhibition for people who sell merchandise online - the Seller's Conference for Online Entrepreneurs, known as <a href="http://www.scoe.biz" target="_blank">SCOE</a>. <br /><br />Last week's event in Philadelphia drew more than 100 Amazon "<em><a href="http://www.answers.com/Q/What_is_a_third_party_vendor" target="_blank">third party resellers</a></em>" from around the country - some of the more than 1 million people in North America who make a full- or part-time living selling on the site. <br /><br />Here are some news items from the conference: <a href="http://www.avalara.com" target="_blank">Avalara</a> - a leading supplier of sales tax compliance software - has launched a new service to help sellers register for sales tax in all states where they may have "nexus" (a legal presence) - it's called <a href="http://trustfile.com" target="_blank">TrustFile</a> and costs only $24 a month without any transaction limits. This is a huge service, especially for Amazon sellers whose merchandise frequently is stored by Amazon at remote warehouse locations. <br /><br />In a similar vein, Amazon now requires sellers who list merchandise on Amazon's overseas websites (such as <a href="https://www.amazon.co.uk/" target="_blank">amazon.co</a> in the United Kingdom or <a href="https://www.amazon.ca/176-4287908-8194552" target="_blank">amazon.ca</a> in Canada) to maintain a local address where customers can return their merchandise if they are not satisfied. <a href="https://en.wikipedia.org/wiki/RR_Donnelley" target="_blank">R R Donnelly</a>, a leader in international mail and parcel delivery for over 100 years, has created a new service designed to help sellers comply with this requirement in Canada, Australia and the United Kingdom (see <a href="https://internationalservices.rrd.com/" target="_blank">internationalservices.rrd.com</a>). <br /><br />Many Amazon sellers work out of their homes, so maintaining a professional image is often difficult. <a href="http://www.20four7va.com" target="_blank">20four7VA</a> is a service that takes the traditional "virtual assistant" concept to a new level, offering three tiers of professional support:<br />
<ul>
<li>An "administrative" level providing basic customer service, e-mail management and cold calling</li>
<br />
<li>An "e-commerce" level with social media management, blog posting, research services (identifying products, competitors and manufacturers), auto-responder e-mail marketing and project management support;</li>
<br />
<li>A "specialist" level providing full e-commerce website service (design, content creation, programming, shopping cart installation and affiliate program setup)</li>
</ul>
<br />Prices range from $65 to $88 weekly (for 10 hours/week), $104 to $144 weekly (for 20 hours/week), and $173 to $240 weekly (for 40 hours/week).<span> <br /><br /></span>If you are engaged in "<em><a href="https://en.wikipedia.org/wiki/Arbitrage" target="_blank">retail arbitrage</a></em>" - buying merchandise at retail and then reselling it online for an even higher price - one of the biggest challenges is figuring out beforehand what your margin will be. <a href="http://www.oaxray.com" target="_blank">Oaxray</a> offers a database product that solves this problem - scan an item's barcode, and the software searches Amazon, eBay and other sites and calculates your possible profit. <span> <br /><br /></span>If you sell products on multiple platforms (such as <a href="https://www.amazon.com/" target="_blank">Amazon</a>, <a href="http://www.ebay.com/" target="_blank">eBay</a>, <a href="https://www.etsy.com/" target="_blank">etsy.com</a> and others), it is difficult to manage your inventory, orders, shipping and repricing using different software products. <a href="http://www.zoobilee.com" target="_blank">Zoobilee</a> offers a comprehensive all-in-one management tool with no set-up fees or contracts. Zoobilee's founders also host "<a href="http://www.intentionalhousewife.com" target="_blank">The Intentional Housewife</a>," an extremely funny podcast for stay-at-home-mompreneurs.<span> <br /><br /></span>Most of the buzz at SCOE centered on "<em><a href="https://en.wikipedia.org/wiki/Private_label" target="_blank">private labelling</a></em>" - buying generic, unbranded merchandise at wholesale and then reselling it on Amazon under your own trademark or brand name. <a href="http://www.johnlawson.com/" target="_blank">John Lawson</a>, e-commerce expert and author of several books on Internet marketing, says that building a brand involves more than selling just one product under a private label: "<em>I don't want to see you selling just a spatula; I want to see you selling the forks, spoons and other kitchen tools as well. I want to see you looking like <a href="http://www.williams-sonoma.com/" target="_blank">Williams-Sonoma.</a></em>"<span> <br /><br /></span>In my own presentation, I offered the following advice for would-be private label resellers:<span> <br />
<ul>
<li>Make 100% sure the merchandise you buy for resell isn't counterfeit, especially if you are importing it from China or elsewhere in Asia</li>
<br />
<li>Make sure the manufacturer covers you as an "additional insured" under their products liability insurance policy, and don't do business with a manufacturer that doesn't carry this insurance</li>
<br />
<li>Just slapping your company name on a product isn't enough to be private label - you should also be enhancing or customizing the product in some way so it stands out from the dozens of other Web retailers offering similar products</li>
<br />
<li>A trademark that isn't registered with the U.S. Patent and Trademark Office is probably too weak to be viable as a brand name over the long term</li>
<br />
<li>As a private labeler, you "<em>stand in the shoes of the manufacturer</em>" - you are responsible for complying with all federal, state and local laws (such as labeling requirements) that apply to U.S. manufacturers of your goods</li>
<br />
<li>If you are selling products for children, you are required to have them safety tested by a nationally recognized laboratory before you sell them online</li>
<br />
<li>Always make sure you have the right to sell your "private label" business to someone else without having to get the manufacturer's consent</li>
<br />
<li>Never, ever negotiate a private label contract with a manufacturer without the assistance of a good e-commerce lawyer - there are no boilerplate contracts for these, and there are many variables that will have to be negotiated to make sure you and your business are adequately protected. </li>
</ul>
</span><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2016-05-16T15:59:00Z
Nondisclosure Agreements (NDAs) Are Not 'Boilerplate'
Staff
http://www.DrLaura.com/b/Nondisclosure-Agreements-NDAs-Are-Not-Boilerplate/-80103735766253414.html
2016-05-09T17:58:00Z
2016-05-09T17:58:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /><br /></a></p>
"I'm starting a consulting business and have been asked to sign a '<a href="https://en.wikipedia.org/wiki/Non-disclosure_agreement" target="_blank">confidentiality and nondisclosure agreement</a>' with my first client, a large multinational corporation. <br /><br />The agreement seems straightforward enough, and it's my understanding that these are pretty much 'boilerplate' agreements that you don't want to spend a lot of time negotiating for fear of sending the wrong signals. <br /><br />There is no <a href="https://en.wikipedia.org/wiki/Non-compete_clause" target="_blank">noncompete clause</a> in the agreement - which is good - but two sections of the agreement cause me concern:<br />
<ul>
<li>A clause saying I cannot solicit business or employment from any of the client's customers for a period of two years after our relationship terminates</li>
<br />
<li>A clause in which I assign to the client all 'intellectual property rights' to any work product I may create for them. </li>
</ul>
Should I sign this agreement 'as is' or attempt to negotiate it?" <br /><br />First of all, there is no such thing as a "boilerplate" agreement. In 35 years of practicing law, I have never - not even once - filled in the blank spaces on a preprinted form and handed it to a client as a finished product. All agreements are unique and need to be tailored to the specific client or transaction to which they relate. <br /><br />Having said that, most nondisclosure agreements ("NDAs" for short) are pretty benign. Your client does have the right to prevent you from blabbing about their trade secrets at cocktail parties. <br /><br />Some NDAs go much further than that. You need to look closely at the definition of "confidential information" in the NDA and make sure it makes sense given the services you are providing. If you are designing the company's website, you should be obligated to keep their "marketing plans" confidential, but not their "computer software source code" as you will not have access to that. <br /><br />Some companies want every possible type of information listed in the NDA for fear they might miss something. The problem is that much of that information isn't really confidential. <br /><br />There are two ways to limit the scope of an NDA. First, at the end of the laundry list of information they want you to keep confidential, add: "which information is not generally known to the public and either derives economic value, actual or potential, from not being generally known, or is of such a character that [name of client] has a legitimate interest in maintaining its secrecy" - this language limits the NDA to the client's "trade secrets". <br /><br />Second, add language saying that "Confidential Information as used herein does not include any information which:<br /><ol>
<li>Is or becomes generally available to the public other than as a result of a disclosure by me</li>
<br />
<li>Becomes available to me on a non-confidential basis from a source other than [name of client], provided that such source has represented to me (and which I have no reason to disbelieve after due inquiry) that it is lawfully entitled to disclose the information</li>
<br />
<li>Is developed by me independently without the use of or reliance upon Confidential Information as herein defined." </li>
</ol>That way if your next client asks you to work on a similar project, you will not be "haunted" by your obligation to your first client (unless, of course, you divulge your first client's trade secrets to the second client which clearly would breach the agreement). <br /><br />Now, let's turn to that "assignment of work product" clause. While seemingly harmless, this clause can cause a lot of problems when you are working for multiple clients on the same or similar types of projects. If you are not creating any intellectual property (such as artwork, graphics, customized reports, inventions or computer software) for a client, you should resist signing such a clause. <br /><br />If you are creating something for a client that has value as "<a href="https://en.wikipedia.org/wiki/Intellectual_property" target="_blank">intellectual property</a>," be sure to include language in the contract saying the definition of "work product" does NOT include any "forms, templates, tools and materials" you have developed independently and use to serve your clients generally. If the client insists you can give them the "license" to use these, but not ownership. Otherwise you might be precluded from using these materials for other clients. <br /><br />Finally, let's talk about that "nonsolicitation" clause. While your client has the right to know you will not communicate with their customers behind their back, Murphy's Law for consultants says that the minute you finish a project for Company A, one of Company A's customers will call you out of the blue asking for similar work. You don't want to be prevented by contract from returning that call. <br /><br />Rather than sign an agreement saying you won't "solicit" customers, say instead that you w will not "cause a customer of [name of client] to terminate its relationship with [name of client], or induce any such customer to breach or terminate any agreement in existence between such customer and [name of client]." <br /><br />That way you can work for anybody you please as long as it doesn't hurt your client.<br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2016-05-09T17:58:00Z
The 12 Biggest Small Business Mistakes [Part 2 of 2]
Staff
http://www.DrLaura.com/b/The-12-Biggest-Small-Business-Mistakes-Part-2-of-2/-695072640978957519.html
2016-05-02T22:33:00Z
2016-05-02T22:33:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /><br /></a></p>
<span><span>Last week we covered six of the 12 biggest mistakes most small businesses make. Here, in my humble opinion, are the other six. <span> <br />
<ul>
<br />
<li><strong>Working "in" the business rather than "on" the business. </strong> Many self-employed people think they are entrepreneurs when they really aren't. They are working full time in the business, without any partners, employees or assistants. They take care of everything themselves, from dealing with customers to keeping the books to running to the office supply store every time the printer needs a new ink cartridge. <br /><br />Successful small businesses grow over time, and you can't grow a business with only one person involved. As a business owner, you should devote most of your time to setting goals for your business and detailed plans for achieving them, with the occasional interruption to deal with an existential threat. If you are spending 14 or more hours a day doing other things, you will be too tired at the end of the day to even think about long-term planning and strategic thinking.<br /><br /> Read "<em><a href="https://www.amazon.com/Myth-Revisited-Michael-Gerber-ebook/dp/B000RO9VJK?ie=UTF8&btkr=1&redirect=true&ref_=dp-kindle-redirect" target="_blank">The e-Myth Revisited</a></em>," by Michael Gerber, for practical advice on delegation, team building and managing your time. And remember, "when you are up to your butt in alligators, it's difficult to focus on your goal of draining the swamp." Let your staff deal with the reptiles - er, I mean customers - to give you more time to dream. </li>
<br />
</ul>
</span>
<ul>
<li><strong>Ignoring your legal, tax and regulatory environment.</strong> Government has its hands in every business in America. No one is exempt. Stop paying your taxes (or play games on your tax returns), and you will lose your business on the first audit. Hire an "independent contractor" and work him 50 or more hours a week and the IRS will come after you for unpaid payroll taxes and penalties. Say things about your competitors that aren't true, and you could be sued for libel or "interference with contract". <br /><br />Every small business needs a good lawyer AND a good accountant. Hire good ones, and stay in touch with them frequently. Legal and tax problems are always, always avoidable. </li>
<br />
</ul>
<ul>
<li><strong>Creating a workplace culture that alienates employees.</strong> People used to say that successful businesses "first took care of their customers, then took care of their employees, then took care of their shareholders." Somehow over the last 30 years the "employee" piece has disappeared, and America's big companies have suffered as a result. <br /><br />Your employees are the "front line" of your business' image and reputation. When employees aren't motivated, it shows. The quality of your customer service suffers. If you came to the entrepreneurial world after working in a toxic office environment, shame on you for making the same mistakes your former employers did. <br /><br /> These days employees, especially Millennials, want a purpose in their work. They don't just want a paycheck. They want the opportunity to have a positive impact on the world, to make a difference somehow. Treat them like "costs" and they will move on. Or worse, join unions. <br /> <br />Treat them like "assets" and they will reward you with loyalty and conscientious service. Help them grow and develop. And make sure the good ones are well compensated. </li>
</ul>
<ul>
<li><strong>Lacking a succession plan.</strong> Note to you Baby Boom geezers out there: you will not live forever. No matter how much yoga you do. No matter how much organic kale you eat. Sooner or later you will die. Even sooner you will slowly, imperceptibly lose the ability to manage your business from day to day. <br /> <br />Who do you want to take over the business when you no longer can? A family member who is currently doing something else? A loyal employee who couldn't afford to buy the business if you dropped tomorrow? A neighboring franchisee who has always wanted to expand into your territory? <br />Make a list of potential successors and start putting things in place that will make it easier for your chosen successor to transition into the business seamlessly. As the Bible says, no one knows when their hour will come. </li>
</ul>
<ul>
<li><strong>Worrying too much about what other people think.</strong> Your reputation is important, but getting the important things done is more important. Reaching your goals is more important than being nice to everyone you encounter along the way, especially people who are blocking your path. See my YouTube video "Three Personality Traits Every Successful Entrepreneur Must Develop" to learn how to be ruthless and still like yourself in the morning. </li>
</ul>
<ul>
<li><strong>Not understanding what "success" really means. </strong>Everybody has their own definition of "success in business." Here are mine, in order of importance. A successful business:
<ul>
<li>Makes money </li>
<li>Survives difficult times </li>
<li>Has repeat customers </li>
<li>Grows over time</li>
<li>Is competitive</li>
<li>Has an impact</li>
<li>Stands out from the crowd</li>
<li>Is highly regarded (or at least grudgingly respected)</li>
<li>Attracts good people as employees, partners and investors</li>
<li>Is one you are proud to own. </li>
</ul>
</li>
</ul>
<br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</span></span>
Staff
2016-05-02T22:33:00Z
The 12 Biggest Small Business Mistakes [Part 1 of 2]
Staff
http://www.DrLaura.com/b/The-12-Biggest-Small-Business-Mistakes-Part-1-of-2/-921983143494657608.html
2016-04-26T18:29:00Z
2016-04-26T18:29:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /><br /></a></p>
"Cliff, we love your column. You give lots of good advice but you dole it out piecemeal, week by week.<span> <br /><br /></span>Every once in a while, can you pull together some of your pearls of wisdom and summarize them in a single column? It would be nice to have a handy 'checklist' of things to do or avoid when we need them."<span> <br /><br /></span>In the next few weeks, I plan to do exactly that.<span> <br /><br /></span>As my readers know, I've been working with small businesses (both successful and unsuccessful) for well onto 35 years now, and I've learned a ton in that time. Many of these lessons - based on actual experience, not theory -- contradict what you read in most small business "how to" books. <span> <br /><br /></span>Here are the 12 biggest mistakes most small businesses make. <span> <br /><br />
<ul>
<li> <strong>Not knowing the customer and market trends.</strong> Without customers, a business isn't a business. It's a hobby.. It is essential - essential - to understand your customers and what actually motivates them as real people living in the real world. Too many business owners adopt the "if I build it, they will come" model for their businesses without knowing exactly why that will happen. What emotional and psychological "triggers" will their products and services generate that will drive people to their door or website?>Too many business owners assume that their customers will always "do the right thing" as long as they are given a chance to do so. While we would all like to live in a world where everybody acted in a selfless, perfectly moral way, that is not the world we live in. If we lived in such a world: </li>
</ul>
<blockquote style="padding-left: 60px;"><strong>*</strong>People would be delighted to pay a premium price for superior service.<span><br /></span><br /><strong>*</strong>People wouldn't "showroom" retail outlets to learn more about a product only to buy the item online later for a discount (plus free shipping).<span><br /></span><br /><strong>*</strong>People would always buy organic food even though it's twice as expensive as the pesticide-infused GMO stuff.<span><br /></span><br /><strong>*</strong>"Big box" retailers selling highly discounted merchandise wouldn't be able to compete with family-owned local small businesses. It's also important to understand market trends, and keep abreast of them. Customers are constantly changing, and it's easy to be left behind. If your website is not mobile-friendly, you are not reaching the Millennial generation who live on their smartphones. Period.<br /> </blockquote>
<span>
<ul>
</ul>
</span><span>
<ul>
<li><strong>Underestimating the competition. </strong> Every business has competition. Sometimes they don't make themselves obvious, but they exist. Sometimes they are not a "who" but a "what" - new technology that makes your business model obsolete. <br /><br />Dismissing an upstart competitor can be a huge mistake. Not doing everything you can legally to crush that competitor before it grows is an even bigger one. </li>
</ul>
<ul>
<li><strong>Not standing out in the marketplace. </strong>"Me too" businesses seldom succeed unless they have another competitive advantage, such as a better location, home delivery, fluency in Spanish, or lower prices. <br /><br /> In these days of declining attention spans, it is more important than ever for your business to stand out from the crowd. In the words of P.T. Barnum, "there is no such thing as bad publicity." </li>
</ul>
<ul>
<li><strong><em>"Paralysis by Analysis</em>". </strong> This is an especially hard challenge for people who come to the entrepreneurial life after a stint in big-corporation America. <br /><br /> In large companies, people are under pressure to get everything right, down to the very last detail, before taking action on anything. They have meeting after meeting with their teams trying to build "consensus" and consider problems from every conceivable angle before making a recommendation to the boss. <br /><br /> Running your own business like that will get you clobbered. <br /><br />By the time you have studied and analyzed the pros and cons of taking a new course of action, the opportunity has probably passed you by. Being "first to market" is often the key to successful brand recognition, and "(s)he who hesitates is lost". Acting on imperfect information is what entrepreneurs do, for better or worse. This is what "taking risks" is all about, and one of the many reasons Nature gave us liquor. </li>
</ul>
<ul>
<li><strong>Poor or unrealistic financial planning (anticipating cash flows). </strong>Big companies are all about earnings and profits. Small businesses are all about cash flow. Underestimating the amount of cash you will need to put into a business before it "breaks even" and becomes profitable is a fatal mistake. It's even worse if you borrowed money on your personal assets and then realize you're going to fall short. </li>
</ul>
<ul>
<li><strong>Weak, unfocused or indecisive leadership. </strong> While you don't have to be a bullying, chest-thumping Alpha Male (or Female) to run a business, you can't be everyone's "best buddy" either. One of the biggest stumbling blocks to success in any field is the desire to be loved. When you know something needs to be done, you have to get it done, whatever that takes. Being overly gentle won't get you there. </li>
</ul>
<em>More next week . . .</em><br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</span></span>
Staff
2016-04-26T18:29:00Z
Should Your LLC be Managed by Members or Managers?
Staff
http://www.DrLaura.com/b/Should-Your-LLC-be-Managed-by-Members-or-Managers/-946729018252476259.html
2016-04-19T05:51:00Z
2016-04-19T05:51:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /><br /></a></p>
When setting up a limited liability company (LLC) for a new business, one of the hardest jobs is figuring out how the company should be managed.<span> </span>In most states, LLCs can be set up in one of two ways, managed either:<br />
<ul>
<li>by its owners (called "members"), similar to a general partnership</li>
</ul>
<ul>
<li>by one or more managers (who may or may not also be members), similar to a corporation or limited partnership. </li>
</ul>
Like so many issues in this area, "one size" seldom fits all situations. You and your co-founders have to think long and hard about how you will be working together, who will have responsibility for what decisions, who can devote more time to the business than others, and other political issues before you come up with the right solution. Generally, the "right solution" is a structure that reflects how the company founders will make decisions in real life. <br /><br />Here are some common startup scenarios, and how I normally advise clients in these situations. <br /><br /><strong>Scenario # 1:</strong> The LLC is a tech company formed by three graduate students. The students (being Millennials) all want to be "equal partners." <br /><br /> I have no problem setting up a member-managed LLC with equal ownership, but in this situation I would insist on a "supermajority voting provision" in the company's <a href="https://en.wikipedia.org/wiki/Operating_agreement" target="_blank">Operating Agreement</a> requiring the vote of 75% or 80% of the LLC members to approve any management decision. That way the members are "joined at the hip" and have to agree on everything. Otherwise, you have an unstable "shifting two-out-of-three majority" where members A and B approve one action, members B and C approve the next, and so forth. <br /><br /><br /><strong>Scenario # 2:</strong> The LLC is an online retailer formed by a US citizen, but with two minority partners based in India and China. The US citizen will be the majority owner and the LLC will be set up in the US. <br /><br />Since the LLC will operate in the US, the US citizen should be able to make management decisions with a minimum amount of oversight from his overseas partners. I would set this up as a manager-managed LLC. The US citizen would be the sole manager with broad and expansive powers. Major decisions (as in Scenario #1) would require a "supermajority" vote of the members so that at least one of the foreign partners would have a veto over major decisions such as mergers, venture capital rounds, and bankruptcy. <br /><br /><br /> <strong>Scenario # 3:</strong> The LLC is a Web-based business that wants to attract venture financing. The three founders are family members - a father and two sons. The two sons are going to run the business but the father has all the money and wants to protect his investment in case the business fails. <br /><br />I would recommend a manager-managed LLC, with all three family members as managers. Yes, the two sons could outvote their father, but as a practical matter if he doesn't like being outvoted the father will hold back the money so there's an incentive for everyone to be on the same page. <br /><br />I would also allow this LLC to issue "preferred equity membership interests" (similar to preferred stock in a corporation). The father would make capital contributions to the company either by purchasing preferred shares or lending money to the company via a "convertible note" which would convert into preferred shares if the company is successful (or if a later investor insists the company wipe this "founder debt" off of the books). Either way, if the company goes under, the father will be able to get his money out before anyone else does - although I wouldn't want to be invited to this family's Thanksgiving dinner afterwards. <br /><br /><br /><strong>Scenario # 4:</strong> Two companies want to form an LLC "joint venture" to engage in a particular project. One company will provide the marketing and talent, the other the capital, with management decisions being made jointly. <br /><br /> This will be a manager-managed LLC, but there's no way to avoid 50/50 ownership of the LLC and a "board of managers" with an even number of members (one or two from each company). <br /><br />In this situation there needs to be a "deadlock" provision in the company's Operating Agreement stating clearly and unequivocally what should happen when the two companies disagree on a course of action. I am not a big fan of arbitration clauses, as arbitration these days can cost as much as a court case, and finding an arbitrator who knows what he or she is doing . . . don't get me started.<span> <br /><br /></span>Unless the client has a better idea, I normally include a provision requiring mediation of any dispute with a third-party mediator acceptable to both parties, with a clause requiring the LLC to be dissolved and liquidated if a satisfactory resolution isn't reached within a reasonable amount of time (say, 90 or 180 days).<span> <br /><br /></span>Then I sit back and hope and pray the client doesn't pick me as the mediator. <br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2016-04-19T05:51:00Z
When Withdrawing Is Better Than Fighting
Staff
http://www.DrLaura.com/b/When-Withdrawing-Is-Better-Than-Fighting/-713763798073985986.html
2016-04-11T18:29:00Z
2016-04-11T18:29:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /><br /></a></p>
"For the past several years I have run a small service business with a partner. We are 50/50 owners of a limited liability company (<a href="https://en.wikipedia.org/wiki/Limited_liability_company" target="_blank">LLC</a>) but have never signed a formal agreement.<span> <br /><br /></span>Over the past year we have found ourselves disagreeing more than agreeing on things. Late last year I discovered that my partner had formed her own company and was pitching business to some of our LLC's clients.<span> <br /><br /></span>I called her on the carpet for this, and she came back with an offer to break up our company. I was only too happy to do this, as the company has hardly any assets, but when I read over the details I learned she was proposing to take virtually all of the best clients for herself, and wanted me to agree that I wouldn't solicit these clients for a period of five years after the breakup!<span> <br /><br /></span>The relationship is clearly turning poisonous, and I just want to get out of it, although I don't really want to hand everything over to her. I was the one responsible for developing most of these client relationships, and I doubt many of them will want to do business with her unless I'm involved somehow. There are one or two I may want to continue working with.<span> <br /><br /></span>What is the best way to end this relationship?"<span> <br /><br /></span><em><strong>Here is a rare - very rare - situation where NOT signing a formal agreement is actually a good thing!</strong></em><span> <br /><br /></span>When you form an LLC with two or more partners, it is customary to sign an "<a href="https://en.wikipedia.org/wiki/Operating_agreement" target="_blank">Operating Agreement</a>" - similar to a partnership agreement - describing how the business will be run, how the partners will share profits and losses, and so forth. Normally, not signing this agreement and doing business "on a handshake" is a bad idea, as it opens the door to disagreements and arguments down the road.<span> <br /><br /></span>In this case, though, probably the best thing this reader could have done is NOT sign an agreement with this partner. Why?<span> <br /><br /></span>Because Operating Agreements also contain numerous clauses restricting the outside activities of the LLC owners. It is not uncommon for agreements of this type to prohibit owners from competing with the LLC business or soliciting customers for a period of two to three years after withdrawing from the company.<span> <br /><br /></span>Had this reader signed such an agreement, she would be forced to dissolve the LLC and spend lots of time (and legal fees) negotiating with her "ex" over who gets what after the breakup, who can manage which clients, and so forth - just like ending a marriage. And as in many divorces, the negotiations can get quite heated. In extreme cases, the dispute may be thrown into "judicial dissolution" -- a court-supervised breakup of the LLC where the judge can almost be counted on to make all of the wrong decisions about how assets should be divided.<span> <br /><br /></span>As I understand it, the LLC has no assets except for maybe a little cash, maybe some equipment and supplies that can be easily replaced, and (most importantly) its list of customers, suppliers and other relationships. Just like a law practice that doesn't "own" its clients, a business like this doesn't "own" these people. While the partners may haggle over "who will handle what accounts," ultimately the client decides whom they wish to do business with, and they can go wherever they wish - to another company altogether, if need be.<span> <br /><br /></span>Because these partners never signed an Operating Agreement, each of them is free to do whatever they wish except steal the LLC's "<a href="http://www.nolo.com/legal-encyclopedia/california-trade-secret-law.html" target="_blank">trade secrets</a>" (this is prohibited by statute in most states). If the LLC has any debt, the debt remains with the LLC and neither partner is personally on the hook.<span> <br /><br /></span>So here's what I might recommend to this reader: instead of engaging in a long, frustrating and fruitless negotiation with your partner, withdraw as a member of the LLC instead. <br /><br />Have your attorney draft a simple, one page letter, in which you:<br />
<ul>
<li>Sell your 50% interest in the LLC to the partner "for $1 and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged"</li>
<br />
<li>Resign from all positions as a "member, manager, employee or agent" of the LLC </li>
</ul>
The letter of withdrawal should be effective as of the last day of the immediately preceding calendar year, and you should send it certified mail so you have proof of receipt. <br /><br />But that's it - get away clean. Then, wait a little while, set up a company of your own, and start telling your ex-clients where they can find you. <br /><br />Your partner won't be happy - in fact, I predict she will be quite furious -- but as long as you avoid saying anything negative about her, and you don't steal any LLC <em>trade secrets</em> (for example, be sure not to use a business name that's too similar to the LLC's name), there shouldn't be anything she can do about it legally. <br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2016-04-11T18:29:00Z
When Buying a Troubled Business, Consider a 'Royalty Deal'
Staff
http://www.DrLaura.com/b/When-Buying-a-Troubled-Business,-Consider-a-Royalty-Deal/-552095901850233437.html
2016-04-04T20:45:00Z
2016-04-04T20:45:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com</a></p>
I have an opportunity to buy a service business in my area.<span> </span>The business has been run forever by a gentleman who is now 88 years old. He has run the business very informally over the years, with several employees who have become "family" (his daughter, not a professional accountant, has been keeping the books).<span> <br /><br /></span>We have looked at his books and tax returns for the past several years, and are convinced there have been no serious compliance problems. But we do notice that the business has seen declining sales over the past couple of years, probably due to the fact that the owner is tired and can no longer devote the time and energy necessary to market this business aggressively.<span><br /><br /> </span>Marketing just happens to be my strength, and I think I can turn this business around in the next year or two. If I'm wrong, though - if the decline in sales is due to something more serious than the current owner slowing down - I don't want to overpay for the business.<span> </span>I would like to make an offer to the owner, who is quite anxious to turn the business over to someone else, but don't know where to begin. What should I do?"<span> <br /><br /></span>Okay, there are two observations I would make up front:<br />
<ul>
<li>The business' current owner is 88 years old.</li>
<br />
<li>This is a "personal" business closely identified with the owner, so you will need his co-operation in dealing with customers and transitioning the business over at least the next several months. </li>
</ul>
<br />You could offer to work in the business for a year or two, as director of marketing, so you could learn the business and increase revenue enough so that you could pay a fair price for the business in the future. The problem with that approach is the owner's age - there is a significantly possibility he will die or become permanently disabled in the next couple of years, leaving you to negotiate the purchase price for the business and other details with his heirs, who may or may not be co-operative. <br /><br />Another problem is that if the business is experiencing a decline in sales there may not be enough cash flow to pay you a decent salary during the period you will be employed. <br /><br />There is another possible solution to this dilemma, which you should discuss with the owner and his advisors. It's called a "royalty deal," and here's how it would work. <br /><br />The company's accountant would first determine the liquidation value of this business - what the owner would get if he shut the business down, paid off all the debts (if any), and sold all of the business assets. For a service business this should be a relatively small amount: just as an example, let's say it's $20,000. <br /><br />You would then offer to purchase the assets of this business (not the stock in the owner's company) for a reasonable purchase price based on the last couple of years' earnings. Just as an example, let's say you settle on $150,000 as the "target" purchase price. You would pay the liquidation value ($20,000) as a down payment for the assets, and pay the $130,000 balance in the form of a "royalty on gross sales" over the next one to three years (no longer than that, in light of the seller's age). Each month or quarter, you would determine the gross sales of the business and pay the owner a royalty of 10% to 20% of that amount. Each royalty payment would be credited against the balance of the purchase price until it is paid in full (perhaps with interest at the lowest federal rate, currently about 2% per annum). <br /><br />Once the seller has received the targeted purchase price ($150,000), with interest, you would no longer owe anything to the seller. If the targeted purchase price is not paid in full at the end of the one to three year period, then one of three things would happen. At your option (not the seller's), either: <br />
<ul>
<li>You would pay the remaining balance in full, plus any accrued interest. </li>
<br />
<li>The remaining balance would be forgiven in its entirety. </li>
<br />
<li>The remaining balance would be "termed out" and paid in equal monthly installments over the next two to three years. </li>
</ul>
<br />Which option you choose would depend on the performance of the business at that time. <br /><br />By doing a royalty deal, you give yourself enough time to figure out where the bodies are buried and turn the business around. You also incentivize the seller to hang around and work with you to make sure the business doesn't deteriorate further - his success is directly tied to your own. <br /><br />Just keep in mind that if the business fails to turn around and you choose the "forgiveness" option you will have to report the amount forgiven as income on the business' tax return in the year in which the debt is forgiven.<br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2016-04-04T20:45:00Z
The Money Anxiety Disorder Myth
Staff
http://www.DrLaura.com/b/The-Money-Anxiety-Disorder-Myth/-318328771495361600.html
2016-03-21T21:55:00Z
2016-03-21T21:55:00Z
<p><strong><br />By Dan Geller<br /></strong><a style="font-family: Arial, Helvetica, Verdana, Sans; font-size: 13.3333px; text-decoration: underline; color: #448ccb; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: -webkit-left; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px; background-color: #ffffff;" href="http://www.moneyanxiety.com/" target="_blank">www.moneyanxiety.com</a></p>
<br />Stressed about money? You are perfectly normal. Seven of ten people reported being stressed about money in a study by the American Psychological Association, which shows that stress and anxiety over money a normative condition.<br /><br />A 2015 study by the <a href="http://www.apa.org/news/press/releases/stress/2014/financial-stress.aspx" target="_blank">American Psychological Association</a> (APA) confirms that anxiety over money is the leading cause of stress among the majority of Americans, and that the level of money anxiety fluctuates with the state of the economy. Moreover, the study shows that people are stressed about money more than they are stressed about their work, family and their health.<br /><br />According to the APA study "Even though aspects of the U.S. economy continue to improve, some Americans are squeezed by sharp increases in health care costs and the cost of living. This year's <a href="http://www.apa.org/news/press/releases/stress/2015/impact-of-discrimination.pdf" target="_blank">Stress in America™ survey</a> shows that stress about money and finances is prevalent nationwide. In fact, regardless of the economic climate, money has consistently topped Americans' list of stressors since the first Stress in America survey in 2007."<br /><br />Money anxiety is a survival instinct that warns us a financial danger. It is the same instinct that told our ancestors to run when they faced a tiger in the woods. In modern society, our survival instincts are centered on money, which enables us to obtain life's necessities such as food, shelter and clothing.<br /><br />The findings of the APY study also validate the theory that financial stress is common and widespread among Americans and that the level of money anxiety fluctuates with the economy. The Money Anxiety Index, which I developed, measures the level of people's stress and anxiety over money and functions as a barometer of the economy. <br /><br />The APA study shows that in 2007, which was the first year of this study, 74 percent of Americans cited money as the leading cause of stress. The number of Americans reporting money anxiety as their leading cause of stress peaked in 2010 at 76 percent in the aftermath of the Great Recession, and gradually declined to 64 percent in 2014 as the economy improved. The findings of the APA study mirror the fluctuation in the Money Anxiety Index. In 2007, the Money Anxiety Index stood at 62.3; climbing up to 96.2 in 2010 and gradually declining to 67.3 at the end of 2014 due to improved economy. <br /><br />I believe that money anxiety should be viewed as behavioral economics phenomenon more so than a psychological condition because of the strong link between the economy and the level of financial stress and anxiety. Understanding money anxiety is a crucial component to lessening its negative affect on our lives.<br /><br /><br /><br /><strong>Dr. Dan Geller</strong> is a behavioral economist and the author of <a href="http://www.amazon.com/Money-Anxiety-Dan-Geller/dp/1622874765/ref=sr_1_2?s=books&ie=UTF8&qid=1386525327&sr=1-2&keywords=money+anxiety" target="_blank"><em>Money Anxiety</em></a>. He pioneered the research on the link between money anxiety and financial behavior. Based on his research, Dr. Geller developed the Money Anxiety Index, which predicts economic trends. The Money Anxiety Index predicted the arrival of the Great Recession 14 months prior to the official start of the recession in December 2007. Dr. Geller has appeared on national TV and radio, such as CNBC and Fox, national and financial publications and delivered the keynote address in national conferences such as American Banker's Banking Analytics Symposium. Dr. Geller earned his Doctoral degree from Touro University, and has published numerous peer-reviewed articles in scientific publications. For more information visit <a href="http://www.moneyanxiety.com/" target="_blank">www.moneyanxiety.com</a>. Permission granted for use on DrLaura.com.<br /><br /><br /><br />
Staff
2016-03-21T21:55:00Z
When Buying A Business, Beware The Too-Eager Seller
Staff
http://www.DrLaura.com/b/When-Buying-A-Business,-Beware-The-Too-Eager-Seller/-479543218583568370.html
2016-02-29T17:24:00Z
2016-02-29T17:24:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com</a></p>
<br />'I've been looking to buy a business for some time now. My college graduate daughter has been out of work and living at home for two years, despite tons of effort and countless rejections, and I thought it might be a good idea for the two of us to own something where I could help her out for a while until she got the hang of things and could manage on her own.<span> <br /><br /></span>Through a business broker, I came across a small family owned hardware store in a rural community about one hour's drive from where we live. There's nothing like it in the immediate area, virtually all the local contractors use the store, the store has been around for over 50 years, and the numbers in their financial statements and tax returns - prepared by an excellent accounting firm so I'm sure there's no shenanigans -- are extremely positive.<span> <br /><br /></span>I saw this as the perfect opportunity for our little family business.<span> <br /><br /></span>When the broker sent the owners our offer letter, they came back and said they would accept our offer but only for an 'as is' purchase: they flatly refused to make any sort of promise as to how the business would perform in the future, whether or not there were any hidden liabilities, or even that their equipment and inventory were in good condition. They said it was a 'take it or leave it' proposition, and they wanted us to pay the purchase price 100% in cash up front.<span> <br /><br /></span>This left a sour taste in my mouth, but before I walk away from the deal - is it customary for business owners to act this way when selling their businesses? Are they just playing hardball?"<span> <br /><br /></span>If I were you, I would walk away from buying this business. As Shakespeare once said, "something is rotten in the state of Denmark," and you should trust your sense of smell. This seller clearly knows something you (and even perhaps the broker) don't know, and you need to find out what it is before you move forward.<span> <br /><br /></span>The big problem here is that the business is located in a distant community. You are not a "local," and therefore do not have local knowledge about the business, the community, and things that are going on there.<span> <br /><br /></span><strong>Financial statements.</strong> Even the best ones, prepared in scrupulous compliance with the accounting rules - only tell part of the story about a business. When you read financial statements, you are looking at the past - how the business has performed historically over time. They say nothing about how the business will perform in the future.<span> <br /><br /></span>There may well be things happening in this community that will change the way the business will perform after acquiring it, and, unlike buying a house (where the seller is usually required by law to make certain disclosures about potential problems, such as termite damage) the seller is under no legal obligation to volunteer information about them. You are truly in a "buyer beware" situation.<span> <br /><br /><br /></span>Here are the sorts of questions you need to ask (and I guarantee you won't find the answers in any financial statement):<br />
<ul>
<li>Is a major competitor (such as Lowe's or Home Depot) moving into town?</li>
<br />
<li>Is a major corporate employer moving out of town and destroying the tax base?</li>
<br />
<li>Are the town's demographics changing in a way that won't favor a family owned hardware store (for example, is the town's population aging to the point where homeowners are cutting back on improvement projects)?</li>
<br />
<li>Is the state Department of Transportation shutting down the road going by the store for major improvements that will take years to accomplish?</li>
<br />
<li>Is the town changing its zoning laws so that the store will become a "nonconforming use" and therefore difficult to sell to someone else?</li>
</ul>
Obviously, if you are not a local resident and don't read the local newspapers every day, you have no clue how to answer these questions.<span> </span>If you do decide to buy this business on the seller's terms - as a "pig in a poke" - here are two things you need to do.<span> <br /><br /></span><strong>Hire a Good - Local - Accountant or Lawyer</strong>. You shouldn't buy ANY business without a good lawyer and accountant, but especially in this situation, you need to work with someone who is a local resident and can help you answer some of these questions. Preferably someone who's been around a long, long time.<span> <br /><br /></span><strong>Spend Some Time in Town</strong>. Take some time off, rent a room at a local motel, and spend a couple of weeks living in the town, chatting up locals (especially the town librarians and elderly men - they are always men - hanging around the coffee machine at the library), reading the local newspapers, and generally finding out if things are happening that will adversely affect the business.<span> <br /><br /></span>Just make sure you contact the local Police Department first and make sure they know what you are doing . . . <br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2016-02-29T17:24:00Z
My 'Entrepreneur Of The Year' Nomination Part 2 of 2
Staff
http://www.DrLaura.com/b/My-Entrepreneur-Of-The-Year-Nomination-Part-2-of-2/400521871372439090.html
2016-02-23T05:50:00Z
2016-02-23T05:50:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com</a></p>
<br />Entrepreneurs are today's American heroes, and that's a good thing. But too many people have an unrealistic picture in their heads of how things are going to go. They think that being a successful entrepreneur means they will be universally loved and rewarded, both financially as well as psychologically and that everything will go without a hitch as long as they find the right idea.<br /><br /><span> </span>Anyone who's ever run their own business - especially a startup in an emerging industry or field of technology - can tell you it doesn't work like that. Being an entrepreneur is not about being loved, being secure or being happy. There are days, weeks, months and years of sheer terror and existential despair as the obstacles and roadblocks come at you one after the other, leaving you hardly any time at all to react, much less prepare for the next tsunami of even bigger challenges. <span> <br /><br /></span>You may find yourself having to do all of the things a reader in one of columns had to do, namely:<br /><br />
<ul>
<li>hit up relatives and total strangers for money</li>
<br />
<li>hit them up again when the money runs out</li>
<br />
<li>max out your credit cards</li>
<br />
<li>put your house at risk by taking out a second or third mortgage (if your spouse will let you)</li>
<br />
<li>putting your marriage and family ties at risk</li>
<br />
<li>do things yourself because you can't afford to pay others to do them</li>
<br />
<li>make bad and costly mistakes, over and over again</li>
<br />
<li>make contractual commitments without having all the facts you need</li>
<br />
<li>spend most of your time putting out fires, most of them of your own making </li>
</ul>
<br />Startups are not for sissies. There's a reason many really successful entrepreneurs are in their teens and 20s - they have no fear of death and nothing to lose in the way of assets, they can pull multiple all-nighters without sleep, and are too dumb to worry about failure because they've never experienced it. After a certain age, it's impossible to walk the tightrope without looking down. After a certain age, your arthritis won't let you walk the tightrope at all.<span> <br /><br /></span>Even if you are successful, there are lots of people who will hate you because you are disrupting their safe, secure little lives and threatening their livelihoods with your new way of doing things. Think about the taxi drivers who are currently trying to shut Uber down, or the parcel delivery companies watching the skies for Amazon's coming fleet of drones. These people will want to shut you down and, in extreme cases, even try to kill you. If you want to be loved, become a teacher. Or a motivational speaker.<span> <br /><br /></span>Starting your own business - of any kind - requires the strength and focus of a bull elephant in heat, the faith of a saint, the courage of a Congressional Medal of Honor winner, and the self-confidence if not arrogance of a Presidential candidate. Being nice is something that may have to wait until after you've succeeded. <span> <br /><br /></span>As for the reader who went through all of my bullet points above, I have only one piece of consolidation (and no, it's not the much-overused "keep calm and carry on"). <span> <br /><br /></span>It is this, think about the story you have just told me. Think how amazing it will be to tell it to your grandchildren decades from now, after you have (somehow) pulled through these tough times. After you have opened your 50th outlet and have paid back all those tight-fisted investors. After your business is a household name, you are universally recognized as "the" industry leader, and business schools are writing case studies about you. After you sign a $2 million book deal for your biography (ghostwritten, of course). After you have taken all those nasty words people have called you and shoved them back down their throats.<span> <br /><br /></span>Somebody once said that "success is the best revenge", and it's true. What gets you through the tough times as an entrepreneur is often not hope, not faith, but simple rage. Rage against the people who didn't believe in you. Rage against the people who tried to stop you. Rage against the people who held you back. Rage against the people who said "you can't do that". <span> <br /><br /></span>Get yourself good and righteously angry (but not so angry that you stop thinking clearly), and you will find the resources within you to get through your current "slough of despond". <br /><br />If you need further inspiration, remember the words of the Norwegian playwright <a href="https://en.wikipedia.org/wiki/Henrik_Ibsen" target="_blank">Henrik Ibsen</a>, "<strong><em><a href="https://www.goodreads.com/work/quotes/2307067-en-folkefiende" target="_blank">The strongest man in the world is he who stands most alone</a></em></strong>." Picture yourself, years from now, telling your success stories on a television talk show or business convention. Picture the look in your audience's eyes as they give you the adulation and hero-worship you are not getting from anyone right now. <br /> <br />And get back to work.<br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2016-02-23T05:50:00Z
My 'Entrepreneur Of The Year' Nomination Part 1 of 2
Staff
http://www.DrLaura.com/b/My-Entrepreneur-Of-The-Year-Nomination-Part-1-of-2/277328806961456832.html
2016-02-15T22:02:00Z
2016-02-15T22:02:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com</a></p>
<br />Like the guy in <a href="http://www.biblestudytools.com/psalms/130.html" target="_blank">Psalm 130</a>, I am writing to you out of the depths of despair.<span> <br /><br /></span>I started a retail business last year involving a hot new technology. We needed some local real estate, and found a pretty good location, but when our contractor inspected the space after we signed the lease he discovered all kinds of environmental and structural problems with the building which didn’t show up on any of the land records. We were able to get out of the lease, after much yelling, screaming and threats of lawsuits, but it cost us a ton of money.<span> <br /><br /></span>After a diligent search we found another good location for the business. This time, I had the contractor examine the space before we signed the lease. But then the real problems began. It cost us twice as much as we budgeted to build out the space. A relative of mine had arranged some financing from some of his country-club friends but we burned through that dealing with the first lease. When I went back to him asking for help with a second round, he said he wouldn’t do it – not couldn’t, wouldn’t – and started calling me all kinds of bad names of which ‘stupid’, ‘incompetent’ and ‘lunatic’ are the only ones you can print in your column. <br /><br />Okay, I made some mistakes, but I didn’t mislead anyone into thinking I was <a href="https://en.wikipedia.org/wiki/Mark_Zuckerberg" target="_blank">Mark Zuckerberg</a>. Everyone knew that this was a new type of business, that I didn’t have a track record in business startups, and that nobody, anywhere, had done anything like this before so we would all have to learn together as we went along. Funny how they forgot about that when the you-know-what hit the fan.<span> <br /><br /></span>A lot of suppliers wouldn’t give us credit because we were inexperienced in business, so we had to pay cash up front for the equipment and inventory we needed. Some of it didn’t work, and I had to learn to fix things myself because there are no qualified technicians where we are located and I can’t afford the downtime to ship it cross-country for repairs.<span> <br /><br /></span>In the meantime, my marriage started to deteriorate because I wasn’t spending enough time on my day job. After we maxed out on all of our credit cards, my spouse wouldn’t put the house at risk to guarantee an SBA loan. We are currently separated and I’m living in a month to month rental with bedbugs until things cool down for a bit. I’m hoping they will, but I may have to choose between this business and watching my kids grow up.<br /><br /><span> </span>The really weird thing is that I haven’t yet given up on this business. I know this is going to work. We opened our doors a couple of weeks ago and are getting tons of new customers as well as extremely favorable local press and word-of-mouth. It will be a while before we can cover expenses, but we have revenue, and we are getting there. I have spoken to the landlord and he’s willing to stretch out the rent payments for a couple of months. I have even gone over my rich relative’s head and directly contacted his friends who loaned us startup money, asking them to tour our operations and consider either making another loan or converting their existing loan into a piece of the business. A couple have visited the store and said they would.<span> <br /><br /></span>I have been through Hell and back, but I am not giving up on this. I am working with a financial planner willing to donate her time and have found a local accountant willing to introduce me to some local angel investors. I’m not sure anyone can give me advice I haven’t already received, but I could really use some inspiration right now. Can you tell me something that will help me get through this?”<span> <br /><br /></span>Never mind the new Star Wars movie. If you are looking for a real, honest to goodness American hero, look no further than this e-mail which crossed my Inbox on Christmas Day. Whoever wrote this (he or she did not leave a name) has my nomination for <a href="http://www.ey.com/US/en/About-us/Entrepreneurship/Entrepreneur-Of-The-Year" target="_blank">Entrepreneur of the Year</a>.<span> <br /><br /></span>A lot of people start businesses thinking it will all be fun and games, that everyone (customers, suppliers and investors) will buy into their idea the minute they open their mouths, that there will never be even a moment of stress or doubt, and that everyone will love, worship and adore them like, well, the heroes in a Star Wars movie. We love watching these characters take leaps of faith and huge, death defying risks because, frankly, we’re not being asked to do it ourselves, and we know things ultimately end up “happily ever after” in Hollywood movies.<span> <br /><br /></span>To see the real world of entrepreneurship up close and personal, re-read this reader’s e-mail. <br /><br />[To be continued next week . . . ]<br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2016-02-15T22:02:00Z
The Right Way To 'Private Label' Online
Staff
http://www.DrLaura.com/b/The-Right-Way-To-Private-Label-Online/-365812256454360527.html
2016-02-08T17:12:00Z
2016-02-08T17:12:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com</a></p>
<br />In previous columns, we have talked about some of the wrong ways to engage in "<a href="https://en.wikipedia.org/wiki/Private_label" target="_blank">private labeling</a>" on <a href="http://www.ebay.com/" target="_blank">eBay</a>, <a href="http://www.amazon.com/" target="_blank">Amazon</a> and other e-commerce websites - buying someone else's merchandise (legally) and reselling it online at a significantly higher price under your own trademark or "brand label". <br /><br />A lot of online retailers are taking someone else's branded merchandise, removing all the trademarks and logos, replacing the manufacturer's packaging with their own, and reselling the merchandise under their own name and logo. It's the "Wild West" of e -commerce, and if not done right, it's illegal. <br /><br />Here are some rules for engaging in "private labeling" the right way. <br /><br /><strong>Get the Manufacturer's Permission. </strong> There are some manufacturers, mainly in Asia, that sell generic merchandise to online retailers for the specific purpose of allowing them to "private label" it. Never assume that you are dealing with one of these folks. Get the manufacturer's written consent to "modify, enhance, improve, repackage, rebrand and resell" the merchandise on "all physical and electronic media, channels of distribution and means of communication, whether now existing or hereafter developed." <br /> <br />While you're at it, ask the manufacturer for the "exclusive" right to do all of the above. "Private labeling" merchandise that's being "private labeled" by dozens of other online retailers is a waste of your time, as that kind of merchandise probably isn't worth much. <br /><br /><strong>Add Some Value to Your Merchandise. </strong>I really have a problem with retailers who take someone else's merchandise, slap their name on it, and resell it online without doing anything else. A true "private labeler" does something to change, modify or enhance the products they sell, even if it's only bundling them with other products in a "package deal" the manufacturers don't offer. It always enhances your status in the marketplace if your stuff is "new, improved" or somehow better than other stuff that appears to be identical. <br /><br /><strong>Make Sure the Stuff Isn't Counterfeit. </strong> Do not resell or "private label" merchandise you do not know or understand. If you do not know your merchandise, you have no idea if it's counterfeit or not. Some Asian manufacturers of "generic" merchandise are actually selling counterfeits, and you will be caught with your pants down if the U.S. manufacturer finds out you are selling counterfeit goods here. They won't just sue you for trademark infringement, they will sic the Government on you. <br />It's a federal crime, people - for the first offense, up to 10 years in prison and a $2 million fine for individuals ($5 million for companies). For multiple violations, you don't want to know. <br /><br /><strong>Trademark Your Brand Identity. </strong> Your whole purpose in "private labeling" is to develop your own brand recognition online. That won't happen if other people can easily use a similar name or logo and confuse people into thinking it's you. The only way to prevent that is to get a federally registered trademark - the "®". <br /><br />Have a professional design your name and logo, and prepare to spend $2,000 to $3,000 to have a qualified lawyer register the trademark with the federal Government. It's worth it. <br /><br /><strong>Get Products Liability Insurance.</strong> As a private labeler, you are responsible for anything that goes wrong with the merchandise (you can try suing the Asian manufacturer, but good luck with that). If someone is injured or dies using your product, they will sue you for "products liability." You need insurance for that, at an average cost of 26 cents per $100 of your cost of goods sold. If the law requires your merchandise to be tested prior to sale, make sure you get it done. For example, the <a href="http://www.chinaimportal.com/blog/cpsia-importing-childrens-products-china-united-states/" target="_blank">federal Consumer Product Safety Improvement Act</a> requires extensive testing of toys and children's products imported from China.<br /><br /><strong>Get Your Own Universal Product Codes (UPCs)</strong>. E-commerce websites require you to have a UPC code on each new item you sell online. The law on UPC codes is a bit fuzzy right now, but if you are "private labeling" legally - either you have the manufacturer's permission or your reselling activities are protected by the <a href="http://www.creators.com/lifestylefeatures/business-and-finance/succeeding-in-your-business/the-kirtsaeng-case-and-the-future-of-retail-arbitrage.html" target="_blank">"first sale" doctrine</a>, you not only can - but may legally be required to - use your own UPC code for each item. <br /><br />You should not remove the manufacturer's UPC code, as that may constitute trademark infringement if the manufacturer uses these codes to police counterfeiting, ensure product quality, facilitate product recalls, or some <a href="http://sunsteinlaw.com/the-upc-code-a-new-frontier-for-trademark-infringement/" target="_blank">other legitimate commercial purpose</a>. <br /><br />Also, there should be a unique UPC code for each individual item you sell - using the same UPC code on multiple items is an old counterfeiter's trick and could get you into legal trouble. <strong> <br /><br />Hire a Really Good Lawyer. </strong> If you are serious about "private labeling," you will need a lawyer. Prepare to spend at least $1,000 a year on services such as:<br />
<ul>
<li>Defending against claims that you are selling counterfeit merchandise</li>
</ul>
<ul>
<li>Setting up your consumer warranties and warranty disclaimers</li>
</ul>
<ul>
<li>Sending nasty "cease and desist" letters to other sellers who are "private labeling" your merchandise without permission </li>
</ul>
<br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2016-02-08T17:12:00Z
Thinking About Crowdfunding? Watch The Fine Print
Staff
http://www.DrLaura.com/b/Thinking-About-Crowdfunding-Watch-The-Fine-Print/-944788550537551990.html
2016-02-01T20:12:00Z
2016-02-01T20:12:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com</a></p>
<br />Make no mistake about it. If you own a small business or startup company, 2016 is going to be the year of crowdfunding.<span> <br /><br /></span>For several years now, it has been possible to raise money online for "projects" (such as a new invention, a documentary film, or a nonprofit campaign) using websites such as KickStarter and IndieGoGo. Basically, you make a pitch for money, take whatever you get, and give your contributors goods or services (or maybe just a "thank you") in return. Nobody guarantees you will get a dime, and (if you're smart) you don't guarantee contributors any sort of return on their investment.<span> <br /><br /></span>Starting May 16 of next year, it will be possible for the first time to raise capital for your company via crowdfunding, and give contributors stock in your company in return for their contribution. You will not be able to raise more than $1 million without jumping through some pretty expensive hoops, you will have to make your crowdfunded offering via a "funding portal" registered with the SEC to make sure everything goes fairly and smoothly, and you will have to comply with about 600 pages of government regulations, but you will be able to raise money from strangers on the Internet.<span> <br /><br /></span>There will no doubt be tons of books published next year to help companies through the complicated crowdfunding process (including - full disclosure - one by yours truly), and that a number of financially-savvy entrepreneurs will set up consulting firms to help startups navigate the process for a fee or commission <br /><br />But a number of companies - including <a href="https://www.seedinvest.com/" target="_blank">seedinvest.com</a>, <a href="https://circleup.com/" target="_blank">circleup.com</a> and <a href="https://angel.co/" target="_blank">angellist.co</a> - are getting a head start on the crowdfunded business by helping companies with so-called "506(c) offerings". These offerings, which the SEC authorized back in 2013, allow companies to raise funds using "methods of general solicitation and general advertising" as long as each and every investor is an "accredited investor" as defined by the SEC - someone either rich enough or sophisticated enough not to need the protection of the federal and state securities laws. <br /><br />The main service these companies provide is to ensure that each investor meets the SEC qualifications - as I've written in previous columns if you make one mistake here it could cost you both your company and your life's savings. <br /><br />If you do plan on doing a 506(c) crowdfunded offering before the new rules kick in next May, here are some things you need to look for in the website's online contract form. <br /><br />
<ul>
<li><strong>Non-Exclusivity.</strong> Never, ever, give a crowdfunding website the exclusive right to manage your offering. This is a new and untested process, and it may be years before we learn the "right" way to put together successful crowdfunded offerings. You may sign up with Website # 1 only to discover later than Website # 2 has a better mousetrap. If that happens you should have the right to work with both websites, and pay each of them a commission based only on the amounts they raise for you. <br /><br />Also, make sure you can terminate the contract "for any reason" upon reasonable notice to the website (30 days is customary). </li>
<br />
<li><strong>Fee Calculation. </strong> Crowdfunding websites want their fee to be based not just on investments they raise for you, but on the entire amount you raise both offline and online. That's more fair than it sounds, as investors who learn about you through the website could do business with you directly and circumvent the obligation to pay fees to the website (I'm not sure how the site would find out about that, but if they did you would be in trouble). Their fee should not, however, include money you raise prior to signing the crowdfunding contract or from people with whom you have a pre-existing relationship (you will need to identify these before signing the contract). </li>
<br />
<li><strong>Ownership of Intellectual Property. </strong> You will be responsible for the accuracy of all documents, financial statements and other material you post on the site. The website should have the right to use this material as needed to help you with your offering, but watch out if the site asks you to "assign" your copyright to them - this means they own the rights to your content and can use it for other purposes (for example, to help other companies with their offerings). All they should get is a "non-exclusive, perpetual license" to use your material only to help you with your offering and comply with government regulations. </li>
<br />
<li><strong>Post-Offering Paperwork.</strong> Some websites will want you to provide financial information to them for one to two years after your offering is completed. You should not have to do this, however, if the site failed to generate at least one investment for you. </li>
<br />
<li><strong>Government Filings.</strong> Some offerings will require you to file documents with the SEC and state regulators. Will the crowdfunding company take care of those? If not, expect to spend anywhere from $1,000 to $10,000 for a lawyer to prepare them. </li>
</ul>
<br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
<p> </p>
Staff
2016-02-01T20:12:00Z
Your New Years Resolutions for 2016 Part 2
Staff
http://www.DrLaura.com/b/Your-New-Years-Resolutions-for-2016---Part-2/-218235870916781665.html
2016-01-26T03:09:00Z
2016-01-26T03:09:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com</a></p>
<br />Here are some more New Year's Resolutions for business owners. <br /><br /><strong>Find Three New Sources of Saleable Product. </strong> If your business is selling stuff online, one of your biggest challenges is finding high quality stuff to sell at a profit. If you're not currently taking consignments, you're out of your mind. Take out an ad in your local newspaper saying "I Take Consignments!" with a toll-free telephone number. Trust me, you will get calls. Let the local senior citizen community know you are available to help them clean out their houses and apartments when they move into an assisted living facility. Finally, make 2016 the year you cut out the middlepeople in your life -- go to <a href="http://www.worldwidebrands.com" target="_blank">www.worldwidebrands.com</a> and <a href="http://www.globalsources.com" target="_blank">www.globalsources.com</a> and find out where you can buy the stuff you're currently selling directly from the manufacturers in Asia and "drop shippers" in the United States. <br /><br /> <strong>Get Your Taxes Right</strong>. If you have been selling things on eBay or Amazon and haven't been paying taxes, now is the time to get into compliance with the tax laws. The IRS and state tax authorities are losing patience with people who don't know they are in business when they're selling online, and it's only a matter of time before you will be required to pay income and sales taxes in every state where your business has a legal "nexus". Get a copy of my book "<a href="http://www.amazon.com/eBay-Sellers-Legal-Answer-Book/dp/081447425X" target="_blank">The eBay Seller's Tax and Legal Answer Book</a>," and read it cover to cover - it's the best twenty bucks you will ever spend. <br /><br /><strong>Renew Your Web Address.</strong> If your business is dependent on the Internet, make sure you check your domain name registrar at least once each year to make sure your Web address hasn't expired. They do send you renewal notices, but often these get picked up as "spam" by your antispam software, so you never see them, your Web address expires and gets grabbed by someone else. Pick a date that's easy to remember - like your birthday - and renew each of your important Web addresses on that day. <br /><br /><strong>Update Your Software Twice a Year.</strong> Just about every software program gets updated at least once or twice a year, but not every software developer sends you an e-mail announcing the latest updates. Make it a point to visit the Website "home page" of each software company whose products you license, and look for a button that says "check for updates" or something like that. It just may save your computer. You should also consider investing in software that will:<br />
<ul>
<li>Automatically update the "drivers" for your computer peripherals (such as <a href="http://www.driversupport.com" target="_blank">www.driversupport.com</a>)</li>
<br />
<li>Open any type of file someone sends you (such as "Ultra File Opener" from <a href="http://www.compuclever.com" target="_blank">www.compuclever.com</a>)</li>
<br />
<li>Back up your entire computer's contents to a location in the "cloud" (such as <a href="http://www.ibackup.com" target="_blank">www.ibackup.com</a>) </li>
</ul>
<br /><strong>Sheath Your SmartPhone</strong>. Make 2016 the year you stop being a "SmartPhone slave". Make some rules about when you will use your SmartPhone or "phablet", and when you won't. Stick to them. <br />
<ul>
<li><strong><em>Rule # 1: Do not use any mobile device while driving a motor vehicle. Period. </em></strong></li>
</ul>
<br /><strong>Get Control of Your Bookkeeping</strong>. If your bookkeeping system consists of a shoebox, you have absolutely no idea what's going on in your business. Sign up for your local community college's evening class on QuickBooks Pro® and learn to do it the right way. If you use "live" bookkeepers, meet with them at least 3 or 4 times every year, review your chart of accounts and other operating statements with them, and get their opinions on things you are doing right and things you need to improve. Because they look at your business from "5,000 feet up", they may see risks, problems and threats that you can't. <br /><br /><strong>Start Escrowing for Estimated Taxes</strong>. If you pay estimated taxes to the federal and state governments four times a year, and find yourself occasionally without enough cash on hand to make the tax payments, you need to start "escrowing" for these taxes. Take your gross sales each month, withdraw 40% of that amount from your business checking account, and deposit it in an interest-bearing savings account. Do this every month, and learn to operate your business on the remaining 60% of revenue. This way you will be sure to have enough cash on hand to make your tax payments when they come due. <br /><br />And a final resolution: <br /><br /><strong>Get Involved in the Political Process</strong>. The Presidential election is getting all the media attention, but a new Congress is also going to be elected in November. Will they care about the needs of small business? To make sure they ido, make your voice heard - contact your elected representatives periodically (to find them, <a href="http://hq-salsa.wiredforchange.com/o/5950/getLocal.jsp" target="_blank">click here</a> and type in your ZipCode). Offer to serve as an informal (and unpaid) advisor on proposed legislation affecting small business. Or - if they aren't responsive -- maybe consider running for local office yourself next year. If Bernie Sanders and Donald Trump can do it . . . <br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
<p> </p>
Staff
2016-01-26T03:09:00Z
Your New Years Resolutions for 2016 Part 1
Staff
http://www.DrLaura.com/b/Your-New-Years-Resolutions-for-2016---Part-1/440498085238077945.html
2016-01-18T16:19:00Z
2016-01-18T16:19:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com</a><br /><br /></p>
<br /> <br />New Year's Resolutions are all about habits. Breaking some bad ones (smoking, drinking excessively, binging on fast food), and starting new ones (working out, eating more Brussels sprouts).<br /><br />Businesses, like individuals, develop bad habits over time that need correction, while success in business over the long run usually means adopting good management habits and sticking with them year after year.<br /><br /><strong>Here are my 2016 New Year's Resolutions for business owners:</strong><br />
<ul>
<li><strong>Do Your Annual "Legal Review"</strong>. It isn't enough to hire a good lawyer and pray you don't get sued. Every business has laws and regulations you need to know about, and it's your responsibility to learn about them so you can prevent lawsuits before they happen. Take your lawyer to lunch sometime in January, tell him or her everything your business did last year and is planning to do this year, and find out what laws have changed since last year. </li>
</ul>
<ul>
<li><strong>"Know the O"</strong>. 2016 is another big year for the Affordable Care Act (a/k/a Obamacare). This year, employers with more than 100 full-time employees must offer health insurance to 95 percent of them (up from 70% in 2015), or pay a penalty on their federal income tax return. Mid-sized businesses of 50 to 99 full-time employees will also be required to offer coverage to 95% of qualifying employees after being exempt from the penalty in 2015. Businesses with 49 or fewer full-time employees will still be exempt from Obamacare penalties, as are part-time employees (defined as working 29 or fewer hours per week), so if you're close to the limit consider changing some of your full-time employees to part-time status.<br /><br />But here's the "big chill" for 2016, the Obamacare "employer mandate" is going into effect. Under the employer mandate, businesses must provide their full-time employees (and their children up to age 26) health coverage options, and ensure that those options cover at least 60% of total allowed medical costs. If the cost of healthcare premiums exceeds 9.5% of a full-time employee's income, then you will be responsible for providing a subsidy to cover the difference. Businesses that fail to comply with these new rules could be looking at some very steep fines that range between $2,000 and $3,000 <em>per full-time employee</em></li>
</ul>
<ul>
<li><strong>Sign 'Em Up; Nail 'Em Down</strong>. You've got a part-time salesperson or administrative assistant working in your business one or two days a week. While they're there, you tell them what to do, when to do it, and how to do it. You believe this person is an "independent contractor", so you don't withhold money from their paycheck each week. Bad idea! The IRS is very likely to look at this person as a part-time employee, and they will come down on you like Thor's hammer if they find out. Now's the time to have this person sign a one-page employment agreement "effective January 1, 2016" (your attorney can draft this for a couple of hundred dollars), and add them to your payroll.<br /><br /> What should the agreement say? At the very least, it should clearly state that the employee serves "at will" and can be terminated at any time, with or without a reason.</li>
</ul>
<ul>
<li><strong>Become a Local "Celebrity".</strong> As a famous Hollywood actress once said, "there is no such thing as bad publicity". Do anything and everything you can to generate positive local press and PR for your business. Volunteer to speak at local business luncheon meetings. Sponsor a charity event at your business location. If you run a butcher shop, call your local cable TV news show and volunteer to do a segment on "how to carve your holiday turkey" - people love that stuff, and news reporters love it when you make their life easier by suggesting story ideas. Since 2016 is an election year, consider running for public office against a popular incumbent so there's no chance you will actually win the election (but be careful: a lawyer friend of mine did this years ago and the incumbent died two weeks before Election Day, sweeping my friend into office unexpectedly).<br /><br />However you do it, get out in front of your marketplace and let them see you. If you aren't visible to your customers 24/7, you are invisible.</li>
</ul>
<ul>
<li> <strong>Market on Social Media</strong>. I think it's time we finally "bite the bullet" and admit that social media isn't just a passing "fad". Make 2016 the year you learn which social media platforms (such as Facebook, Twitter, LinkedIn, and Instagram) are right for your business, and take at least one course on how to market effectively on those platforms. Commit to building a "fan base" or "following" of at least 1,000 people by the end of this year.<br /><br />If your business already has a strong "following" on social media, consider making a crowdfunded offering of stock to these people under the new SEC crowdfunding regulations that will go into effect May of this year.</li>
</ul>
More next week . . .<br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
<p> </p>
Staff
2016-01-18T16:19:00Z
A Business Owner's Letter To Santa Claus
Staff
http://www.DrLaura.com/b/A-Business-Owners-Letter-To-Santa-Claus/-348842818773313975.html
2015-12-21T16:57:00Z
2015-12-21T16:57:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com</a><br /><br /><br />Dear Santa:<span> <br /><br /></span>Well, another year has gone by. My business is surviving, by a thread, but I'm still facing lots of challenges. You know I've been really, really good this year (maybe that's the problem with my business - I'm too darned good for my own good and should borrow more from the <em>Ruthless entrepreneur</em> playbook, but never mind). <br /><br />So, here's my wish list for the 15 things I would really, REALLY love to see under the tree this Christmas morning. (Yes, I know there are 12 days of Christmas but that song really wears on you, after hearing it the first 27 times). <br /><br /></p>
<ol>
<li>A simplified sales tax system that will protect "brick and mortar" retail stores (by requiring online retailers to pay tax on sales made to their customers), and increase state sales tax revenues (by requiring sellers to collect tax on sales made to anyone in the United States, not just in their states), but keeping it simple for everyone (by requiring sellers to collect tax under the laws of their own states, and remit the tax to their own state tax authority, not the states where their customers are located). </li>
<br />
<li>A simple, easy to apply test that would enable me to figure out which of my workers should be treated as "employees" and which should be treated as "independent contractors"; for income tax purposes, without having to involve my lawyer, my accountant and a "<a href="https://en.wikipedia.org/wiki/Magic_8-Ball" target="_blank">Magic Eight Ball</a>". (By the way, a belated "thank you" for giving me that last year -- it's really helped me figure out Obamacare.) </li>
<br />
<li>A law prohibiting large company<em> bullies</em> for suing little people like me, for infringing their trademarked brands when the product or service I'm selling has nothing whatsoever to do with the industry they are in and there's no possibility anyone will confuse the two of us with each other. </li>
<br />
<li>Simple, easy to follow set of instructions telling me when I can, and cannot, use content from someone else's book, music recording or website in my marketing and promotional materials without getting the copyright owner's permission. </li>
<br />
<li>Health insurance for me - not my employees - that I can deduct. </li>
<br />
<li>Clarification of how "benefit corporations" - a new legal entity that combines for-profit and nonprofit benefits - will be taxed by the IRS, so that well-intentioned folks can set up their businesses this way. </li>
<br />
<li>A generation of young workers with a strong work ethic who don't expect life to hand them everything the way their parents did. </li>
<br />
<li>Immigration laws that allow only <em>the right people </em>in - people (whatever they look like, wherever they come from, whichever direction they face when they pray) who are willing to work hard, make sacrifices for their families, live clean and moral lives, and invest in their own education and personal development so they will never, ever become dependent on other people, or want to blow them to smithereens. Oh, and it would also be great if they could speak English well enough that my customers can understand them. </li>
<br />
<li>Customers who recognize that the excellent service and personal assistance they receive from small businesses requires that they pay a slightly higher price than the online "deep discounters", and who are willing to pay that premium. </li>
<br />
<li>Federal, state and local government officials who have actually worked in a small business at some point, understand our concerns, and know how to balance their budgets the way we have to do ours. </li>
<br />
<li>Changes to the tax laws allowing startups to issue shares to employees, directors and others in exchange for "sweat equity" services without creating massive tax headaches for the recipients. </li>
<br />
<li>Lenders that are willing to take our cash flows, characters and future prospects into account when deciding whether or not to lend us money, not just our credit scores. </li>
<br />
<li>Federal, state and local government officials who recognize that every time they increase taxes or otherwise make it more expensive for me to run my business, those increased costs come dollar for dollar out of my own pocket, and that I can't always raise my prices to cover them. </li>
<br />
<li>A national school system that integrates business and financial skills into the educational curriculum from kindergarten through grade 12. So that kids' understanding of business and profit-making activity isn't limited solely to the misinformation they get from disgruntled anti-capitalist teachers or the villains in animated Hollywood movies. </li>
<br />
<li>A law making website owners at least partially responsible for monitoring the communications that take place on their sites and making sure they do not lead to criminal activity or terrorism. Of course, anyone who believes that any of these wishes will ever be fulfilled in our lifetimes probably . . . also believes in Santa Claus. </li>
</ol><span><br /></span>A very Merry Christmas, Happy Chanukah, Joyous Kwanzaa, Festive Winter Solstice and/or Non-Faith-Based Celebration of the Calendar Year-End to all my readers. <br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
<p> </p>
Staff
2015-12-21T16:57:00Z
Year-End Tax Planning For 2015
Staff
http://www.DrLaura.com/b/Year-End-Tax-Planning-For-2015/679815008908781257.html
2015-12-07T16:36:00Z
2015-12-07T16:36:00Z
<p><strong><br />By Cliff Ennico<br /></strong>SucceedingInYourBusiness.com<br /><br /><br />For most people, the end of December is called "the holidays." For lawyers, accountants and other financial types, however, it's called "year-end."<span> <br /><br /></span>While most of us celebrate with turkey, egg nog, ugly sweaters and football (often all at once), these folks are working late hours trying to save their clients as much money in taxes as possible before the ball drops in Times Square. <br /><br /> Thanks to the continuing political gridlock in Washington, 2015 wasn't a big year for major changes in the tax law. Given the Presidential election next November, odds are 2016 won't be a big year for tax law changes either. After the election, though, look for some dramatic changes, especially if the Democrats keep the White House and regain control of the Senate. <br /><br /> For now, the basic year-end advice still applies: defer the recognition of taxable income into 2016, and accelerate deductible expenses into 2015. Wait until January to send out invoices for work performed in December, and prepay in December expenses you know you will incur in January. Here are some other tips: <br /><br /><strong>Avoid the Obamacare Penalties. </strong> Under Obamacare, individuals who choose not to get health insurance through government exchanges, on their own or via their employers have to pay an additional tax. <br /><br />If you did not have health insurance coverage in 2015, you'll have to pay the higher of:</p>
<ul>
<li>2 percent of your yearly income above the tax-filing threshold (generally about $10,150) up to a maximum cost of the national average premium to purchase a "Bronze Plan" from the federal healthcare exchange.</li>
<br />
<li>$695 per person ($347.50 per child under 18). The maximum penalty per family using this method is $2,085. </li>
</ul>
<p><br />These costs have more than tripled from last year, when the penalty was $95 per person or 1 percent of household income. <br /><br /><strong>New Filing Deadlines for 2016 Returns. </strong> Partnerships, LLCs taxed as partnerships, and S corporations, which used to file their federal tax returns on April 15 of each year, now have to file them on March 15. Regular or "C" corporations, which used to file their federal tax returns on March 15 (if they use a calendar year), now have to file them on April 15. The filing deadlines for 2015 tax returns are unchanged. <br /><br /><strong>Contribute to Your Retirement Plan.</strong> You can still deduct contributions to an IRA, 401(k) or other retirement plan, even if the contribution isn't made until just before you file your 2015 tax return sometime in 2016. Heck, you can even set up a new retirement plan after December 31 and still deduct your contribution in 2015 as long as you make the contribution before you file your 2015 return. <br /><br />If you are over age 70-1/2 and are forced to take taxable distributions from your IRA, consider donating up to $100,000 of your IRA funds to charity. The transfer will count toward your "required minimum distribution" for the year, and will not be included in your income as other distributions will. <br /><br /><strong>Hold On To Your Stock, Unless You Lost Money.</strong> Short-term and long-term capital gains rates took a big jump last year because of the 3.8% "net investment income tax" that was part of Obamacare. To avoid the tax, hold onto any stock that appreciated in value during 2015. <br /><br />If you lost money in the stock market, consider "loss harvesting" --selling your "losing" stocks before December 31 to realize losses. You can then use those losses to offset any taxable gains you have realized during the year. Losses offset gains dollar for dollar. And if your losses are more than your gains, you can use up to $3,000 of excess loss to wipe out other income. <br /><br />If you have more than $3,000 in excess loss, it can be carried over to the next year. You can use it then to offset any 2015 gains, plus up to $3,000 of other income. You can carry over losses year after year for as long as you live.<span> <br /><br /></span><strong>Prepare for the 2016 Election. </strong> Predicting the outcome of any election is a fool's errand. But here's one fairly safe forecast: whoever wins the White House next year, lowering taxes for upper-income Americans (that means you) won't be anyone's priority. Start planning now for post-election increases in tax rates, and the gradual elimination or phasing out of some popular deductions for people in higher-income brackets. <br /><br />Here's my personal rule of thumb: the more a tax deduction or credit is perceived as furthering a "positive" social or environmental goal, the more likely it will survive any post-election tax reform intact. So make tons of charitable contributions, and look into energy tax credits for solar panels and other "alternative energy" or "sustainable energy" home improvements. Consider buying an electric car. And moving to a state with no income tax (Alaska, Florida, Nevada, South Dakota, Texas, Washington, or Wyoming).<span> <br /><br /></span><strong>Don't Obsess. </strong>Chances are there isn't much you can do between now and December 31 to make a dramatic change in your 2015 tax liability. Enjoy your holidays. Worry about taxes next year. </p>
<p><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</p>
Staff
2015-12-07T16:36:00Z
When Do You Sign Up For Income And Sales Taxes?
Staff
http://www.DrLaura.com/b/When-Do-You-Sign-Up-For-Income-And-Sales-Taxes/-34819202530085897.html
2015-11-30T20:57:00Z
2015-11-30T20:57:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /><br /></a> "I started an online retail business earlier this year, and have generated so much income already that I know I'm going to get a Form 1099 from PayPal this year.<span> <br /><br /></span>When do I need to sign my business up for federal and state taxes? I know I have to do this eventually but would prefer to hold off forming a limited liability company (LLC) until after January 1. What is the proper order in which this should be done?<span> <br /><br /></span>Also, I'm planning to do this business with my spouse. Do I have to sign up as a partnership and file Form 1065 with the IRS each year?"<span> <br /><br /></span>When you start a business and don't form an LLC, corporation or other legal entity, you are what is called a "sole proprietorship". The good news is that you started your business this year rather than last year, so you are (so far) not delinquent with any tax filings. You have time to set up your business the right way.<span> <br /><br /></span>There are two types of taxes an online retailer has to keep track of: income taxes and sales taxes. You pay income taxes to the IRS and to your state tax authority (if your state has an income tax - some don't). You pay sales taxes to your state tax authority only - as of now there is no federal sales tax.<br /><br /><span> </span>Let's take income taxes first. Even if you make only One Dollar of profit with your online selling activities, you are required to report your income from those activities to the IRS and pay income tax on that income at your individual tax rate. Most people do this by filing Schedule C as part of their individual federal income tax return (Form 1040), but you are not required to do that. You can choose instead to treat your online selling as a "hobby" and report your income as "hobby income" on line 21 of your Form 1040. <br /><br /><span> </span>I strongly prefer that my online selling clients use Schedule C to report their income. That way, you can take all kinds of business related deductions to reduce your taxable income. If you have a day job and you incur a loss from your online selling, the loss can be used to offset income from your day job. Those are wonderful tax benefits you don't get when you report your income form online selling as "hobby income".<span> <br /><br /></span>Your first Schedule C is due with your Form 1040 next April 15, and you can extend the filing date by up to six months. If you owe the IRS money, however, you have the pay the amount due by April 15 even if you request the six-month extension.<span> <br /><br /></span>If you have more than $1,000 in tax liability for the current year (and it sounds as if you might - PayPal sends you Form 1099 only if you grossed more than $20,000 from more than 200 transactions), you are supposed to estimate and pay your federal and state income taxes in four (4) installments on April 15, June 15, September 15 and January 15. Since I am writing this column in November, you should make at least a partial payment of this year's on January 15 to avoid interest, penalties and other charges you might incur if you wait until April 15 to pay the whole amount.<span> <br /><br /></span>Because the sole owners of the business are you and your spouse, you probably will not need to file Form 1065 (the partnership information return) this year. If you plan to add new owners or investors down the road, however, you will need to start filing Form 1065 once they are on board, and it will be easier for you to do that if you start filing now.<span> <br /><br /></span>Also consider whether or not your spouse should be a partner in your business - if he or she is not rolling up their sleeves and slogging through the trenches with you every day, there is no tax or other advantage to making him or her your business partner. You might actually be better off as the sole business owner, as that way you can:</p>
<ol>
<li>Transfer assets into your spouse's name to protect them from lawsuits. </li>
<br />
<li>Depending on your state law - come out ahead if you and your spouse get divorced. Give that some thought. </li>
</ol><span><br /></span>Now for sales taxes. You should have registered with your state tax authority to pay sales tax when you started this business, and you should definitely do so now. Keep in mind that you pay sales tax only on "in-state sales" (sales to people who live in the same state you do). Total your in-state sales to date and, if the amount of tax is relatively small (it probably will be), pay it as a lump sum when your next sales tax return is due, most likely at the end of the current calendar quarter.
<p> </p>
<p><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</p>
Staff
2015-11-30T20:57:00Z
Should You Sign Up For A Non Profit Board?
Staff
http://www.DrLaura.com/b/Should-You-Sign-Up-For-A-Non-Profit-Board/866536618299643112.html
2015-11-24T02:05:00Z
2015-11-24T02:05:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /><br /></a><br />"A local nonprofit organization has asked me to join its board of directors. It's a real honor for me, and a cause I believe in, but I'm just a little nervous about my legal responsibilities. Could you tackle those at some point?"<br /><br /><span> </span>You bet. A lot of nonprofit startups are looking to "build their boards" right now, and even yours truly has received a couple of invitations. Joining a nonprofit's board of directors can be a singular honor, a sign that you have "arrived" in your community, and a terrific opportunity to network with the rich, powerful and/or influential people that normally join nonprofit boards. If you want to hobnob with the "one percenters," find out which charities they support and get involved.<span> <br /><br /></span>But, as with all business-related activities, there are some risks.<span> <br /><br /><br /></span>The first question you need to ask is: why are you - of all people - being asked to join the board? There are three possible reasons you are being invited:</p>
<ul>
<li><strong>Your Skills: </strong> startup nonprofits look for people with business experience, philanthropic giving experience, and leadership skills</li>
<br />
<li><strong>Your Contacts: </strong> as a board member you will be expected to help with fundraising activities - how deep is your Outlook Contacts list?</li>
<br />
<li><strong>You Are "Fresh Meat": </strong>the organization has reached a stage where the only board members are "worker bees" and outside directors are required by law to approve matters such as employee compensation and transactions between the organization and its other (inside) directors - as an outside director your vote on these matters will be critical.</li>
</ul>
<br />The next question you should ask is: what is the time commitment involved? <br /><br />
<p>Nonprofit organizations can be notorious "time vampires" that will make large demands of your time, especially at inconvenient times of the year for your business or other revenue-generating activities that simply must take priority. <br /><br /><br />The next question you should ask (yourself - not the organization's personnel) is "why do I want to do this?" Is it because:</p>
<ul>
<li>You believe in the organization's mission (this is the correct answer)</li>
<br />
<li>You want to network with the other directors and wealthy donors</li>
<br />
<li>You are looking for a public relations (PR) opportunity to help promote other things you are doing </li>
</ul>
<p>The next question you should ask (yourself, again) is: "is the image I will have by joining this organization consistent with other activities in which I'm involved?" If, for example, you are a local politician known for your die-hard conservative political opinions, you might want to think twice about joining organizations that tend to support left-leaning causes. If people at cocktail parties are asking you "why are you in with those people?", your activities are probably sending mixed messages and you will need to have a pretty good way of reconciling them. <br /><br />If you are joining an organization that is promoting a cause that will hurt the interests of your current employer, or your small business, think hard and long before joining. You may be choosing between your value system and your financial security. <br /><br />Last but not least, you need to ask three very pointed questions of the organization's leadership: <br /><br /></p>
<ul>
<li><strong>Does Your State Have a "Volunteer" Exemption from Liability? </strong> Most states have a statute that exempts "volunteers" in charitable organizations from legal liability of any kind. But some of those statutes have fine print, and you need to know what the limitations are. For example, if the statute protects you from liability if you are "negligent" in the performance of your duties as a board member, will you be protected if someone sues you for "gross negligence" in your duties? </li>
</ul>
<blockquote>A "volunteer" by definition does not receive compensation of any kind from the organization. If you are receiving any sort of fee for serving as a director, you are no longer a "volunteer" and may be liable for your actions. Watch out also for expense reimbursements. If you are required to fly to Washington, D.C. and testify on behalf of your organization before a Congressional subcommittee, and the organization is reimbursing your travel expenses, does that make you no longer a "volunteer" under the exemption statute? <br /></blockquote>
<ul>
<li><strong>Will the Organization Indemnify You from Lawsuits?</strong> In the unlikely event that the volunteer board members are sued personally because of something the organization did or did not do, will the organization pay your legal expenses and any judgment that is rendered against you? Again, state laws vary as to when an organization is obligated to do this, and when it isn't. </li>
</ul>
<ul>
<li><strong>Is There Insurance to Back Up That Indemnity Obligation?</strong> If the organization is just starting up, it probably won't be able to afford liability insurance for its directors and officers (so-called "D&O coverage"). This is expensive insurance, and many organizations will try to persuade you that as a "volunteer" you have nothing to worry about. <br /><br />Get that promise in writing if you can. And a written commitment from the organization to purchase D&O insurance for you as soon as it can do so. </li>
</ul>
<p><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</p>
Staff
2015-11-24T02:05:00Z
Report From The New York Business Expo
Staff
http://www.DrLaura.com/b/Report-From-The-New-York-Business-Expo/51561699480134483.html
2015-11-16T13:02:00Z
2015-11-16T13:02:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com<br /></a><br />As I bounce around this great country of ours giving talks at conferences and trade shows and discovering the finer points of airport cuisine, I was pleased to have the chance to speak closer to home at the <a href="http://www.newyorkbusinessexpo.com" target="_blank">New York Business Expo and Conference</a>.<span> <br /><br /></span>This semiannual event, hosted at New York City's Jacob Javits Center, is widely considered to be the region's Number One business conference, trade show and networking event, featuring dozens of exhibitors and leading experts on small business marketing, operations, finance and, well, you name it.<span> <br /><br /></span>Whenever I attend any sort of trade show, I always make it a point to troll the exhibits looking for small or startup companies offering products and services to the small business community. Here are 12 new products and "players" I hadn't known about before, and some old dogs with a few new tricks:<span> <br /><br /></span></p>
<ol>
<li>Looking for someone to sing "Happy Birthday" in Welsh to one of your employees wearing only a thong and a wooly hat for only $5? Check out <a href="http://www.fiverr.com" target="_blank">Fiverr</a>, an online platform for novelty <em>gigs</em> where prices start at - you guessed it -- $5. </li>
<br />
<li>Looking for a birthday cake for that same employee with an edible 3-D photo of the employee and you "baked in"? Check out <a href="http://www.youcake.com" target="_blank">YouCake</a>. </li>
<br />
<li>Looking for a publication that will give you in-depth coverage of the People's Republic of China going far beyond what is available in the mainstream U.S. media? Check out <a href="http://www.theepochtimes.com" target="_blank">Epoch Times</a>.</li>
<br />
<li>So you thought Geico only did car insurance? Turns out the little green guy with the Australian accent is a leading purveyor of commercial liability, errors/omissions, and other key coverage small businesses need (contact marketing buyer Steve McArthur at mcstephens@geico.com). </li>
<br />
<li>Looking to learn the "legal and tax stuff" your business needs to know without having to listen to a stuffy lawyer drone on for hours? Check out "<a href="http://www.WeGuideYouThrive.com" target="_blank">The Smart Entrepreneur</a>," a series of DVD programs by Dianna Stallone, a lawyer and business expert who's almost as funny as I am. </li>
<br />
<li>Want to offer online payments to your customers but feel you're too small to get the service you need from PayPal? Check out <a href="http://www.bluepay.com" target="_blank">BluePay</a>, where human beings respond to every customer service call. </li>
<br />
<li>Do you need cash for your successful business, but your business doesn't have the assets and receivables that a traditional lender wants as collateral? Check out <a href="http://www.berkmanfinancial.com" target="_blank">Berkman Financial</a>, a lender that focuses on your cash flow as a source of repayment. </li>
<br />
<li>Looking to pitch your business to venture capitalists but can't afford the plane fare to Los Angeles to be on "Shark Tank"? Check out <a href="http://www.angelweekny.com" target="_blank">Angel Week NY</a>, a two-day event on November 30 and December 1, featuring a "speed dating" type event with investors called <a href="http://www.startupalooza.com" target="_blank">Startupalooza</a>. </li>
<br />
<li>Afraid you will run out of power for your digital gadgets in the middle of nowhere? <a href="http://www.dawanglobal.com" target="_blank">Dawan Global</a> offers a variety of solar-powered battery chargers, power banks, lanterns and panels that synch with just about every type of mobile device. </li>
<br />
<li>Looking for customized safety products like hardhats, reflective vests, fire extinguishers, gloves and other protective apparel for your construction personnel? Check out <a href="http://www.safetysuppliesunlimited.net" target="_blank">Safety Supplies Unlimited</a>. </li>
<br />
<li>Looking for a really cool software app that will take your two-dimensional Web graphics and "bring them to life" with 4-D "augmented reality" digital animation? Check out <a href="http://popup.cool" target="_blank">PopUpCool</a>. </li>
<br />
<li>Looking for a way your customers can post streaming video on your website or banner ad without the need for an app like Periscope<span>®? Check out "<a href="http://www.vipeline.com" target="_blank">Video Pipeline</a>," a patent pending recording tool offered by VipeLine. </span></li>
</ol>And, as always at this event, there were several actual entrepreneurial startups offering wares ranging from the culturally beautiful to the "really, really out there," such as:<br />
<ul>
<li><a href="http://www.shenyun.com" target="_blank">ShenYun</a>, a celebration of classical Chinese dance scheduled to be held January 14-17 at New York City's Lincoln Center.</li>
<br />
<li><a href="http://www.geumhong.com.my/" target="_blank">GeumHong</a>, your source for genuine Korean Geumsan Ginseng, "a product that is created by a collaboration of the will of heaven, the energy of the Earth and the sincere endeavor of humans".</li>
<br />
<li><a href="http://www.vapeny.com" target="_blank">VapeNY</a>, your exclusive source for "BonVape e-Liquid" for e-cigarettes, whose "base mix is comprised of USP grade, Kosher materials that . . . is safe for people with peanut allergies".</li>
<br />
<li><a href="http://www.arbonne.com" target="_blank">Arbonne</a>, a network marketing company focused on high-quality skincare products, oils and botanicals (and whose cookies were the hit of the show).</li>
<br />
<li>"<a href="http://www.facebook.com/dudesofdisruption" target="_blank">The Dudes of Disruption</a>," a talk radio show/podcast on the lifestyles of disruptive, game-changing people with Y chromosomes.</li>
<br />
<li><a href="http://www.ivyleagueearlylearning.com" target="_blank">Ivy League Early Learning Academy</a>, a fast-growing chain of pre-kindergarten education centers.</li>
<br />
<li><a href="http://www.mila-such.com" target="_blank">Mila-Such</a>, a line of silk scarves with psychedelic tie-dyed themes.</li>
<br />
<li>My personal favorite - "<a href="http://www.thecatmat.me" target="_blank">The Cat Mat</a>," a bath mat in the shape of a reclining feline that is billed as the "Number One After Sex Towel". </li>
</ul>
<br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
<p> </p>
Staff
2015-11-16T13:02:00Z
So You Want To Be A Real Estate Investor?
Staff
http://www.DrLaura.com/b/So-You-Want-To-Be-A-Real-Estate-Investor/-408358580593081279.html
2015-11-02T18:11:00Z
2015-11-02T18:11:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://SucceedingInYourBusiness.com" target="_blank">SucceedingInYourBusiness.com</a><br /><br />"I am really excited about becoming a real estate investor. I have read all of Robert Kiyosaki's 'Rich Dad, Poor Dad' books, and he makes a compelling case that real estate investment is a great way to get rich!<span> <br /><br /></span>But I'm sure there's a lot more to that. Could you please offer some guidance on how someone like me with limited capital can get started in the real estate business?"<span> <br /><br /></span><a href="https://en.wikipedia.org/wiki/Robert_Kiyosaki" target="_blank">Robert Kiyosaki</a>'s "<a href="http://www.richdad.com/" target="_blank">Rich Dad, Poor Dad</a>" series of books, launched in 2000, are among the most popular and frequently-read books on entrepreneurship in the world today. Written as a series of parables or stories taken from the author's life, they advocate financial independence and building wealth through investing, real estate investing, starting and owning businesses, as well as increasing your financial intelligence to improve your business and financial aptitude. Throughout the author stresses the ownership of high value assets that produce cash flow, rather than being an employee.</p>
<blockquote><strong>Confession #2: </strong>I have read each and every one of these books. For people who are clueless about how to manage their financial lives, the books are a great and fun way to start. <br /><br /><strong>Confession #1:</strong> The books aren't bad at all. The author's emphasis on cash flow, rather than earnings and profits in the accounting sense, is a lesson many seasoned entrepreneurs don't learn until it's often too late. </blockquote>
However, the books have also created an entire generation of wannabe entrepreneurs who think that it's easy to invest in real estate. Just about every week I meet somebody who wants to "get into real estate investing" after finishing one of Kiyosaki's books on the commuter train.<span> <br /><br /></span>The hard and painful truth is that succeeding in real estate is a lot more complicated and fraught with risk than the <em>Rich Dad, Poor Dad</em> books make it seem.<span> <br /><br /></span>Real estate is a very simple business. You buy a property and take a mortgage out on it, just as you would with your own home. You then rent the property out to one or more tenants. The tenants pay rent each month (you hope), you pay the operating and maintenance expenses of the property, pay the mortgage with interest each month, and live on whatever is left over. If there is anything left over.<span> <br /><br /></span>As Kiyosaki correctly points out, to do this successfully you must watch your cash flows like a hawk. It will be difficult to maintain a positive cash flow at all times if you own only one property. If even one tenant fails to pay rent on time, or if a leaky furnace or HVAC unit needs to be replaced without warning, your cash flow will quickly go negative and you will be facing a foreclosure notice from the mortgage bank.<br /><br /><span> </span>Simply put, real estate investing is not a "passive" activity where you just sit back and the money rolls in. You will need to work extremely hard, and perhaps own multiple properties, before you see the returns on investment Kiyosaki talks about.<span> <br /><br /></span>This reader needs to become thoroughly familiar with the law, economics and language of real estate. The first step is to read - and practice the exercises in - one of the many textbooks used for real estate classes in college and M.B.A. programs.<span> <br /><br /></span>For many years, the essential textbook in this field was "<a href="http://www.amazon.com/Real-Estate-James-D-Shilling/dp/0324143796" target="_blank">Real Estate</a>" by James D. Shilling (formerly known as "Ring and Dasso"). It has not been updated in several years, but is still mostly accurate and can be obtained very cheaply on Amazon. More recent entries in this field are "<a href="http://www.amazon.com/Real-Estate-Principles-McGraw-Hill-Insurance/dp/0073377341" target="_blank">Real Estate Principles: a Value Approach</a>" by David Ling and Wayne Archer, "<a href="http://www.amazon.com/Real-Estate-Finance-Investments/dp/0073377333/ref=sr_1_1?s=books&ie=UTF8&qid=1446502221&sr=1-1&keywords=Real+Estate+Finance+and+Investments" target="_blank">Real Estate Finance and Investments</a>" by William Brueggeman and Jeffrey Fisher, and "<a href="http://www.amazon.com/Practical-Real-Estate-Daniel-Hinkel/dp/1285448634/ref=sr_1_1?s=books&ie=UTF8&qid=1446502245&sr=1-1&keywords=Practical+Real+Estate+Law" target="_blank">Practical Real Estate Law</a>" by Daniel Hinkel. <span> <br /><br /></span>Stay away from books with "Real Estate Development" in the title. These are focused primarily on building, renovation and construction projects. Most real estate "players" are investing in existing properties, not building new ones.<span> <br /><br /></span>If you do not have enough capital to invest in properties, you will need to form pools or "syndicates" of investors and learn to manage those pools as their fiduciary. The leading books here are "<a href="http://www.amazon.com/Principles-Estate-Syndication-Samuel-Freshman-ebook/dp/B00QNZSTD6/ref=sr_1_1?s=books&ie=UTF8&qid=1446502293&sr=1-1&keywords=Principles+of+Real+Estate+Syndication" target="_blank">Principles of Real Estate Syndication</a>" by Samuel Freshman and "<a href="http://www.amazon.com/Real-Estate-Securities-Syndicating-ebook/dp/B011PJBNV4/ref=sr_1_1?s=books&ie=UTF8&qid=1446502319&sr=1-1&keywords=Real+Estate+Securities" target="_blank">Real Estate Securities</a>" by Mark Lee Levine and Philip Feigin. But better than any book would be to hire a lawyer who specializes in real estate securities and have him or her coach you through the process.<span> <br /><br /></span>Finally, if you do not have enough capital to hire a "property manager" for your properties (which eat big time into your cash flow), you are a "landlord". Just like Snidely Whiplash. To keep expenses under control, you will have to do everything yourself. The classic book is "<a href="http://www.amazon.com/Landlording-Handymanual-Scrupulous-Landladies-Themselves/dp/0932956378/ref=sr_1_1?s=books&ie=UTF8&qid=1446502351&sr=1-1&keywords=Landlording" target="_blank">Landlording</a>" by Leigh Robinson. <span> <br /><br /></span>Being a "real estate investor" sounds sexy, but not when you're unplugging clogged toilets at 3 a.m. Somehow Kiyosaki's "Rich Dad, Poor Dad" books don't talk about that much.<br /><br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
<p> </p>
Staff
2015-11-02T18:11:00Z
Report From ECom Chicago
Staff
http://www.DrLaura.com/b/Report-From-ECom-Chicago/-506253727251415071.html
2015-10-19T13:31:00Z
2015-10-19T13:31:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /><br /><br /></a>I just got back from speaking at this year's <a href="http://ecomchicago.com/" target="_blank">eCom Chicago conference</a> for online retailers.</p>
<p><span><br /></span>A little history: About eight years ago, when <a href="http://www.ebay.com/" target="_blank">eBay</a> started cutting back on its popular outreach programs for eBay sellers, eBay sellers starting forming their own mutual support groups called "meetups" (for a complete list of all eBay meetup groups around the U.S., see <a href="http://ebaysell.meetup.com/" target="_blank">ebaysell.meetup.com</a>). <span> <br /><br /></span>One of the earliest meetup groups was the Chicagoland Area eBay & eCommerce Sellers MeetUp Group, founded in 2006. Today the group, co-chaired by Mark and Robin LeVine of <a href="http://www.bubblefast.com/" target="_blank">Bubblefast.com</a> (a leading online purveyor of bubble wrap and other shipping supplies) and Rich and Nila Siok of <a href="https://www.appealingsigns.com/" target="_blank">AppealingSigns.com</a> (a leading online purveyor of customized signs for small businesses), boasts about 1,000 active members and sponsors the annual eCom Chicago conference in Elk Grove Village, Illinois.<span> <br /><br /></span>As new online platforms such as <a href="http://www.amazon.com/gp/help/customer/display.html?nodeId=200229160" target="_blank">Amazon FBA</a> (Fulfillment by Amazon) and <a href="https://www.etsy.com/" target="_blank">etsy.com</a> have come onto the scene, the conference has expanded its scope beyond eBay to include people who sell on these platforms.<span> <br /><br /></span>This year's event attracted over 200 sellers from all corners of the country and some of the top speakers on the national eCommerce circuit.<br /> <br /><strong>Here are some tips and new resources I learned about at the conference:</strong><span> <br /><br /></span>According to Chris Green, co-founder of <a href="https://www.scanpower.com/" target="_blank">ScanPower</a> (chris@scanpower.com), the latest big news from Amazon is their <a href="https://merch.amazon.com/landing" target="_blank">"merch" program</a>, an on-demand service that enables you to create, sell and promote your custom-branded tee-shirts with no out-of-pocket costs to you. Says Green, "They have already <a href="http://www.createspace.com" target="_blank">launched a similar service</a> for print-on-demand books, and are looking to develop other similar services using 3D-printing technology. We will soon be living in a world where nobody will have to carry physical inventory of any products - everything will be printed or created in response to individual orders."<span> <br /><br /></span>Thinking about selling on Amazon FBA for the first time? "<a href="http://www.amazon.com/Amazon-FBA-Launch-Pad-Foundation-ebook/dp/B011J6YZ4A" target="_blank">Amazon FBA Launch Pad</a>," a new book by Amy Feierman (amy@amyfeierman.com), is a step-by-step guide for the novice seller, written in plain English.<span> <br /><br /></span>If you need to process information visually, you can subscribe to <a href="http://buybox.club/" target="_blank">BuyBox.club</a>, a monthly DVD package published and hosted by <a href="http://ecommercemoney.com/about-brandon-dupsky/" target="_blank">Brandon Dupsky</a> (brandon@ecommercemoney.com) featuring lectures and seminars by leading eCommerce experts (including most of the speakers at eCom Chicago).<span> <br /><br /></span>Okay, so maybe you just want to listen to podcasts on your iPod while jogging. <a href="http://soyouwannasellonebay.com/" target="_blank">Ron LeBeau</a> (ron@soyouwannasellonebay.com) hosts an eBay podcast, while <a href="http://www.thatkat.com" target="_blank">Kat Simpson</a> hosts one for Amazon FBA sellers. <span> <br /><br /></span>Looking to buy tons of inventory from liquidators but don't want to get stung by buying counterfeit or expired merchandise that will get you kicked off of eBay or Amazon? <a href="https://www.bulq.com/" target="_blank">Bulq.com</a> is a new service that guarantees "98% manifest accuracy, or we'll make it right."<span> <br /><br /></span>The next big mobile smartphone app for online retailers (and lots of other folks) is <a href="http://www.periscope.tv" target="_blank">Periscope®</a>, a streaming video app that lets you look at the world through someone else's eyes. With the app, you can shoot video of your products, demos and other people (with their permission, of course) and upload the videos to social media in real time, according to eCommerce guru and professional actress <a href="http://ilovetobeselling.com/" target="_blank">Kathy Terrill</a>.<span> <br /><br /></span>What do you do if your Amazon FBA account is suspended for violations of Amazon's many complex selling rules, or because someone else (perhaps a competitor) has accused you of selling counterfeit merchandise? <a href="http://onlinesalesstepbystep.com/" target="_blank">Cynthia Stine</a> (cynthia@onlinesalesstepbystep.com), author of the new book "<a href="http://www.amazon.com/Suspension-Prevention-Reinstated-Protect-Account/dp/0996721509" target="_blank">Suspension Prevention: Get Reinstated and protect Your Amazon Seller Account</a>", offers the following suggestions:</p>
<ul>
<li><strong>Review your Imperfect Orders, Returns, and Negative Feedback reports every week</strong> and take action when you see three or more issues for one of your listings during the previous 60 days. </li>
<br />
<li><strong>Check your inventory carefully against the listing on Amazon before sending it in.</strong> Many sellers are surprised to get "not as described," "not as advertised," and "defective" claims because the product the customer received does not match the picture and/or description on Amazon exactly. </li>
<br />
<li><strong>Don't sell product you don't own.</strong> While this advice upsets drop-shipper sellers, the fact is they are highly vulnerable to suspension. Amazon regularly suspends for shipping and product quality problems and sellers have no recourse because they don't control their inventory.</li>
<br />
<li><strong>Buy from authorized sources.</strong> If the authenticity of your products is ever questioned, you must provide invoices or receipts from legitimate distributors, large retailers, wholesalers or manufacturers that include the full product name and - preferably - the UPC code. </li>
</ul>
<p>And here's one from me: when someone (especially the manufacturer) accuses you of selling counterfeit goods, respond promptly with an e-mail denying the accusation. The message should include proof that you have every reason to believe your merchandise is genuine, a statement that you "have been advised by our legal counsel that we have every right to sell this merchandise" and an offer to make your legal counsel available to answer any questions your accuser may have. In my experience, that e-mail will end any bullying and lead to a more positive conversation that should resolve the dispute. <br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</p>
Staff
2015-10-19T13:31:00Z
The Coming War Against 'Contract Employees' (Part 2 of 2)
Staff
http://www.DrLaura.com/b/The-Coming-War-Against-Contract-Employees-Part-2-of-2/-690964354067313010.html
2015-10-12T16:44:00Z
2015-10-12T16:44:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /></a></p>
<p> Slowly but surely, the courts and government regulators are taking the stand that there is no middle ground between "employees" and "independent contractors". If you are directing and controlling a person's activities while they are working for you, that person is an employee. You must withhold federal and state income taxes from that person's paycheck, and pay federal and state employment taxes on top of that. Period. No further discussion.<span> <br /><br /></span>An independent contractor must have the ability to control when and how she does her work. You don't have to withhold taxes from amounts you pay her, nor do you have to pay employment taxes on top of that. That is her responsibility. You can tell her you need something done by a particular date and time, but between now and then, she gets to decide when she works, how she works, and who she works for. <span> <br /><br /></span>If you're not sure whether someone is an employee or independent contractor, she is probably an employee.<span> <br /><br /></span>Earlier this month, the <a href="http://www.nlrb.gov/news-outreach/news-story/board-issues-decision-browning-ferris-industries" target="_blank">National Labor Relations Board handed down a major ruling</a> that could upend the traditional arms-length relationship that has prevailed between corporate titans such as McDonald's and its neighborhood fast-food franchises. And it comes as concerns are growing about a generation of new Internet-fueled business such as Uber and Lyft that depend heavily on independent contractors. <span> <br /><br /></span>Typically, when you buy a franchise, there's a clause in the franchise agreement saying that you (the "franchisee") are an independent contractor of the franchise company (the "franchisor"). When you hire employees, they are your employees, not the franchisors.<span> <br /><br /></span>Yet, at the same time, the franchise agreement requires you to comply with a host of regulations, often contained in an operations manual running to hundreds or even thousands of pages. As in the old Buffalo Springfield song, "step out of line, the men come and take you away."<span> <br /><br /></span>Your employees are your employees for legal and tax purposes, but the franchise company directs and controls what the employees wear, how they do their work, how often they can take bathroom or smoking breaks, what they must say when greeting customers, and so forth. You are legally responsible for these employees if something goes wrong, but someone else (using you as its mouthpiece) is telling them what to do. <span> <br /><br /></span>Since the 1940's the NLRB has maintained that employees of "joint employers" (two companies that coordinate their activities in hiring, firing and managing workers) can bring lawsuits against either or both company for, well, just about anything employees can legally sue for. Discrimination, wrongful termination, sexual harassment, overtime pay, unionization, you name it. It is not good to be a joint employer.<span> <br /><br /></span>In its decision, the NLRB found that, regardless of their contractual relationship, two or more entities are joint employers of a single workforce if (1) they are both employers within the meaning of the law; and (2) they share or codetermine those matters governing the essential terms and conditions of employment. In evaluating whether an employer possesses sufficient control over employees to qualify as a joint employer, the Board said it will - among other factors -- consider whether an employer has exercised control over terms and conditions of employment indirectly through an intermediary, or whether it has reserved the authority to do so. <span> <br /><br /></span>While not specifically addressing franchises, the NLRB ruling is clearly designed to shake up relationships between franchisors and their franchisees. It is not difficult to imagine fast-food workers, many of whom work below prevailing wage rates in their communities, banding together to launch class action lawsuits. Not just against the owners of their particular franchise, but the national franchise operation as well.<span> <br /><br /></span>In fact, <a href="http://www.wsj.com/articles/lawsuit-against-mcdonalds-to-test-nlrb-decision-on-franchisee-relationship-1421955168" target="_blank">10 employees of a McDonald's outlet in Virginia have sued the national franchise</a>, alleging they were fired by the owner of the local franchise outlet on the basis of race, even though such discrimination by a franchisee (if it took place) would clearly have violated McDonald's strict corporate policies against discrimination of any kind. <span> <br /><br /></span>This lawsuit and others like it, are bound to test the NLRB's ruling. They are also bound by a finding of the NLRB's general counsel earlier this year, that McDonald's could be treated as a joint employer with its franchisees in a series of <a href="http://www.nlrb.gov/news-outreach/news-story/nlrb-office-general-counsel-issues-consolidated-complaints-against" target="_blank">worker complaints</a> over employment conditions.<span> <br /><br /></span>You can bet the International Franchise Association and the large national franchises will be fighting these battles in court for at least the next few years. But however these cases are resolved, the handwriting is on the wall: the days of the so-called contract employee are numbered. If you have any in your business, it's time to sort them out. <br /><br />Some of these folks may fall into special categories (for example, outside sales employees may be exempt under the federal minimum wage and overtime law). But most won't. You will have to make some tough choices. Talk to a good employment lawyer, start thinking about which of your contractors you can afford to lay off, get ready to add some of them to your payroll...and be prepared to pay a lot more for a Big Mac.</p>
<p><strong><br /><br /><br />Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</p>
Staff
2015-10-12T16:44:00Z
The Coming War Against 'Contract Employees' (Part 1 of 2)
Staff
http://www.DrLaura.com/b/The-Coming-War-Against-Contract-Employees-Part-1-of-2/389028974349544550.html
2015-10-05T16:44:00Z
2015-10-05T16:44:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /></a></p>
<p><br />It's amazing to me how many significant new legal and tax developments take place during the summer months. Each year, while most of us are baking on a beach, walking through the woods or treating ourselves to truffles at a trattoria in Taormina, lawmakers and judges are quite busy making disruptive changes to our world.<span> <br /><br /></span>Two summertime developments are especially worthy of note:</p>
<ul>
<li>a decision by the California Franchise Tax Board saying that Uber drivers should be classified "employees" rather than "independent contractors" for tax purposes.</li>
<br />
<li>a decision by the National Labor Relations Board saying that employees of franchise outlets fall under its "joint employer" rule, enabling them to sue not only the local franchise owner but the national franchise company in labor/employment lawsuits. </li>
</ul>
<p>For the past two decades, employers have been playing fast and loose with the rules distinguishing between employees and independent contractors, creating a grey area known as "contract employees". If these two decisions signal (as I think they do) a new era of stricter enforcement of these rules, the good times for America's small businesses are over, and your Big Mac or Whopper is going to get a lot more expensive. <br /><br />Let's review the basics. If you have people working with you in your small business, they fall into one of three broad categories: partners, employees and independent contractors. </p>
<ul>
<li><strong>Partners</strong> share in the profits and losses of the business. Companies don't pay or withhold taxes on payments to partners, and cannot direct or control their activities. Partners have no rights as employees. If they withdraw from the company, they may receive payment for their stock but don't qualify for unemployment benefits. </li>
<br />
<li><strong>Employees</strong> receive a regular salary or hourly wage, and qualify for benefits. They work a regular schedule, dictated by the employer. Companies must pay and withhold taxes on their wages. They also have lots of legal rights, including the right to unionize. In return, companies get to direct and control their employees' activities in the workplace. If they are fired, they qualify for unemployment benefits. </li>
<br />
<li><strong>Independent contractors</strong> work on their own schedules, often on a project basis. Companies are not required to pay or withhold taxes on amounts paid to contractors, but cannot direct or control the contractors' activities - the contractors get to decide what projects they will work on for whom, and when. Independent contractors have no rights as employees. They cannot unionize, and they don't qualify for employee benefits. If they are terminated, they don't qualify for unemployment benefits. </li>
</ul>
<p>So how do you tell the difference? Rather than give a straight answer, the IRS uses 20 vague and ambiguous "criteria" in determining whether a worker is an employee or an independent contractor (<a href="http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Self-Employed-or-Employee" target="_blank">click here</a> to view the criteria on the IRS website). Add to the lack of clarity the fact that the IRS in recent years has lacked the staff to audit aggressively, and it's no surprise many small (and large) business owners feel they have carte blanche to treat all their workers as independent contractors - even key executives who work 50 hours a week and more. <br /><br />The <a href="https://www.ftb.ca.gov/" target="_blank">California Franchise Tax Board</a> (FTB) decision awarded $4,000 in expense reimbursements to an Uber driver who claimed she was an employer of the popular social media driven taxicab service. Uber argued that it did not exert any control over its drivers' hours, but the FTB found that "by obtaining the clients in need of the service and providing the workers to conduct it, [Uber] retained all necessary control over the operation as a whole." The FTB compared an Uber driver to a pizza delivery person, who in a prior case was held to be an employee of the pizzeria notwithstanding the fact that the delivery person was required to provide his own car and pay for gasoline and insurance. The FTB went on to note that the driver's work was integral to Uber's business, for without drivers to provide transportation services to passengers, the business would not exist. <br /><br />The FTB found conclusive evidence that Uber was, in fact, involved in every aspect of the operation: Uber vets prospective drivers, requesting drivers' personal banking and residence information, Social Security numbers, and conducting background and DMV checks. Drivers must register their cars with Uber, and Uber requires that the cars be less than 10 years old. The passenger pays Uber a set price for the trip, and Uber pays the drivers a non-negotiable service fee. Only Uber may negotiate a cancellation fee with a passenger who cancels a trip, and Uber discourages its drivers from accepting tips. On these grounds, the FTB found that drivers are Uber's employees rather than independent contractors. <br /><br />Uber has appealed the FTB decision in federal court, as its very business model is under an existential threat. But the principal thrust of the FTB's reasoning - that a worker's ability to schedule her own hours by itself does not make her an independent contractor - is likely to stick. <br /><br />More next week . . .<br /><strong><br /><br /><br />Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</p>
Staff
2015-10-05T16:44:00Z
Whatever You Do, Don't Get Sick
Staff
http://www.DrLaura.com/b/Whatever-You-Do,-Dont-Get-Sick/-777332381895470232.html
2015-09-08T13:44:00Z
2015-09-08T13:44:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /><br /></a><span style="color: #000000;">Like all Baby Boom geezers, I really think that I will live forever, that I will always be healthy, that I will be able to work productively and creatively into my 90s and beyond, and that I will always look like I did back in the 1970s. <span> <br /><br /></span>I really don't feel my age, and I certainly don't act it. But a number of recent events have convinced me that the ravages of time are slowly catching up with me.<span> <br /><br /></span>My Dad warned me about this. A star high school athlete, he once told me that when you're young, "your body does whatever you tell it to do. You order your body to 'jump', and it asks 'how high?' You tell it to stay up all night working - or partying - and it gives you a crisp salute and a 'yes, sir' in return."<span> <br /><br /></span>"But when you reach a certain age, your conversations with your body become more of a negotiation. You tell your body to do something, and it says 'well, okay, I can give you that, and maybe I can give you that, but that one over there? No way!'"<span> <br /><br /></span>Faithful reader, I have reached that certain age.<span> <br /><br /></span>I never used to get sick. Okay, maybe a cold once in a while, and seasonal allergies (to anything green that blossoms between March and November), but nothing that would ever stop me from doing whatever I wanted to do. As a student, I never missed a day of school. And I can count on the fingers of no hands the number of days I have missed working the past 25 years.<span> <br /><br /></span>Until a couple of months ago.<span> <br /><br /></span>I woke up one morning in late May having difficulty breathing. Since it was peak allergy season, I didn't worry about it. But later that afternoon, I started coughing - a raspy, "smoker's hack" that wouldn't go away. My temperature soared to 103 and I took to my bed, sleeping for more than 24 hours solid - something I haven't done since college.<span> <br /><br /></span>That was bad enough, but then came something worse: laryngitis.<span> <br /><br /></span>I can hear some of you laughing already, "a lawyer with laryngitis? It just means he can't bill by the word as usual." Har-dee har har.<span> <br /><br /></span>But this was no ordinary 24-hour laryngitis - this sucker wouldn't quit. For five days, I was unable to speak above a whisper, during a week in which I had to:<br /></span></p>
<ul>
<li>scheduled five speaking engagements for local business groups, plus a lucrative keynote speech for a major trade show in New York City. </li>
<li>committed to hosting a live webinar for a local university.</li>
<li>scheduled lengthy telephone conversations with several law clients to review documents for their fast-moving business deals. </li>
</ul>
<br />Needless to say, I couldn't do any of the above without vocal cords, and despite my best efforts, I ended up ticking off some people. I was able to find substitutes for some of the local talks, and the university let me postpone the webinar. But the trade show speech revolved entirely around me: the company running the show was promoting my presence - not my topic - as a key draw. They weren't happy when I canceled on less than 24 hours' notice, leaving them with a huge hole in their agenda and lots of dissatisfied people who signed up for the event specifically to hear me speak. Leaving a client in the lurch is not a career-enhancing move for a professional speaker. <br /><br />And, of course, my clients aren't going to postpone their business dealings because their lawyer is croaking like a bass-baritone Andy Devine (unless you're a Baby Boom geezer, you will have to look him up online). Time kills deals, and if it weren't for the Heaven-sent gift of e-mail (I never thought I would say that in this column) I probably would have been staring down a malpractice action from somebody. <br /><br />As a solo entrepreneur, especially with a "portfolio career" of income-generating activities (such as practicing law and speaking professionally), you can't afford to get sick. We all plan (to some extent) for our eventual demise, and the smarter among us carry disability insurance so we can pay our bills if we are clobbered by a serious injury or long-term illness.<span> <br /><br /></span>But most of us don't have a "contingency plan" for ordinary setbacks that put us temporarily out of commission - like an attack of laryngitis during trade show season.<span> <br /><br /></span>As the Baby Boom generation faces its 60s and 70s, we may well have to keep working to stay solvent, and of course "we'll all be rockin' in our wheelchairs" (Roger Daltrey, The Who, 1969), but we have to face reality and make adjustments to our business plans to account for our (hopefully slowly) diminishing physical and mental abilities. <span> <br /><br /></span>For me, I'm spreading my projects out more over time (so a sudden short-term illness will require fewer schedule adjustments), megadosing on Vitamin C, and exercising daily. And putting together a list of fellow small business experts who can "pinch hit" for me on the podium if laryngitis ever strikes again. <a href="http://succeedinginyourbusiness.com/" target="_blank"></a>
<p><strong><br />Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</p>
Staff
2015-09-08T13:44:00Z
IRS Getting Your 501(c)(3) Application Through the IRS
Staff
http://www.DrLaura.com/b/IRS-Getting-Your-501c3-Application-Through-the-IRS/-910629692533067330.html
2015-08-10T17:55:00Z
2015-08-10T17:55:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /><br /><br /></a>"Several friends and I are setting up a local charity to help recent college graduates pay off their student loans. We also intend to lobby our state government to pass laws allowing banks to forgive student loans. </p>
<p>We filed with the IRS for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code, but they came back at us with all kinds of questions that will take forever to answer. If we don't respond within 10 days, they say they will reject our application and won't return the $850 filing fee.<br /><br />What is really going on here? Is this a sign the IRS just doesn't like our idea and is trying to stonewall us?"<br /><br />Trying to read the IRS is almost impossible, especially when it comes to granting tax-exempt status to an organization like yours.<br /><br />When you apply to the Government for tax-exempt status, you are asking for a HUGE favor - the privilege to operate without having to pay taxes, and (if you indeed are a public charity) giving other people permission to donate to your cause AND write it off on their personal taxes.<br /><br />You can understand that the IRS doesn't give out these "get out of jail cards" easily. Frankly, as a taxpayer, I'm glad they don't make it easy for people to get these.<br /><br />I suspect that you didn't have an attorney's help when you filed for tax-exempt status. If I'm right about that, you need to find one now to avoid an endless back-and-forth ping-pong match with your IRS examiner.<br /><br />Here are some things for you and your attorney to think about:<br /><br /><strong>Did You Fill In All the Blanks?</strong> When you file for tax-exempt status with the IRS, your application form (usually it's IRS Form 1023) must be absolutely letter perfect. All blank spaces must be filled in. Even if a particular item doesn't apply to you, the space must be filled in with "none", "not applicable", "n/a" or some variation so the IRS knows you just didn't ignore it.<br /><br />An incomplete application form is the biggest reason for IRS rejection of 501(c)(3) applications.<br /><br /><strong>Did You Include All the Required Exhibits? </strong>If you plan to pay your executive director more than $50,000 a year, you must - must - adopt a compensation policy and attach it to your application. If you have more than two directors on your "executive committee", you must - must -- adopt a conflicts of interest policy and attach it to your application. The IRS has standardized forms for these, which you should use if you don't have a better one, but you have to attach them to your application.<br /><br /><strong>Are You Truly "Serving the Public"? </strong> This is probably the biggest sticking point for 501(c)(3) applications. A lot of well-intentioned people want to set up charitable organizations that benefit only certain individuals, not the public at large.<br /><br />To qualify for 501(c)(3) status, an organization must be formed for a purpose that is "charitable, educational, religious, scientific, literary, fostering national or international sports competition, preventing cruelty to children or animals, or testing for public safety." Also, the organization "must ensure that its earnings do not inure to the benefit of any private shareholder or individual." If the IRS even suspects that your organization will benefit only the families of people involved in your organization, it will reject your application (see <a href="http://www.irs.gov/pub/irs-pdf/p4220.pdf" target="_blank">IRS Publication 4220</a>).<br /><br />Your application probably didn't say enough about how your organization will decide who will (and won't) receive grants to pay off their student loans. Will these grants be available to the general public? Or only to people living in a certain area? Or only to people who can demonstrate financial need? If the latter, how do you propose to determine "financial need"? You will need to give the IRS lots of detail here and persuade them that you truly are a "public" charity.<br /><br /><strong>Watch Out for "Political Activity." </strong> The other reason you may be having trouble with the IRS right now is your stated goal of lobbying state and local governments to change the laws for student loans.<br /><br />Tax-exempt organizations are absolutely prohibited from engaging in "electoral" activity of any kind - they cannot support candidates for public office, or make donations to their campaigns, political action committees (PACs), or other fundraising organizations. Period.<br /><br />Public charities are also prohibited from engaging in lobbying unless it is an "insubstantial" part of their total activities. To determine if your lobbying activities are "insubstantial," you should have attached IRS Form 5768 and elected to "cap" your lobbying expenses (for a startup organization, this cap will usually be 20% of total expenditures or $100,000).<br /><br />If lobbying is going to be a substantial activity for your organization, you may elect to qualify as a lobbying organization under Section 501(c)(6) of the Internal Revenue Code. By doing so you will be allowed to participate in a much broader range of political activity (including some support for candidates for public office), but your donors will not get a tax-deduction for contributions they make for those activities.<br /><br /><br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</p>
Staff
2015-08-10T17:55:00Z
Ten Ways to Kill Your Business
Staff
http://www.DrLaura.com/b/Ten-Ways-to-Kill-Your-Business/-474324846821012597.html
2015-07-20T07:00:00Z
2015-07-20T07:00:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /></a></p>
<p>Ah, summer. A chance to lie on the beach, do some camping or outlet shopping, and . . . do some "big picture" thinking about where your business has been and where it's going.<span> <br /><br /></span>Getting away from the day-to-day grind and distancing yourself from your business actually helps you run your business better. I find that when I'm not spending my day answering phone calls and e-mails from clients and my mind is free to wander I often come up with some pretty darn good ideas. I also see lots of things I may be doing wrong.<span> <br /><br /></span>Here's something to think about: are you trying to kill your business? I'm serious. Some business owners are their own worst enemies, looking at the world in ways that almost guarantee failure down the road. <br /><br />If you really want your business to fail, here are 10 surefire ways to do it.<br /><br /></p>
<ol>
<li>Look at the world the way you want it to be, the way you think it ought to be, or the way your schoolteachers or professors told you it would be - not the way it really is. Believe people when they tell you your idea is terrific, and don't listen to "negative nellies" who criticize you. Don't be "cynical" because nobody likes cynical people.<br /><br />Believe everything you see and read in the news media. After all, they're professionals, so if they're saying something that contradicts your personal experience, they must be right and you must be wrong. </li>
<br /><br />
<li>Don't be aggressive in pursuing your business goals. Spend lots of time researching and thinking before you take any action, and be so nice to your competitors and your customers that they walk all over you. Being pushy and demanding (especially of yourself) is not normal, and people will think you are crazy, antisocial, or, even worse, "ruthless". <br /><br />You should worry a lot about what other people think about you - after all, as Willie Loman says in Arthur Miller's "Death of a Salesman", success in life is always about being popular.</li>
<br /><br />
<li> Choose a business because it is interesting; you are an educated person and must use that education to be successful, or else you are a failure. Never mind that many successful people in business never finished high school (or in some cases grade school). <br /> <br />Given the choice between a personally fulfilling business and a lucrative one, choose the former. The personal satisfaction you will get by being creatively stimulated all the time, and/or knowing that your daily suffering and sacrifice is helping to make a better world, are far more important in the long run than paying your bills.</li>
<br /><br />
<li> Don't bother to learn anything about accounting or financial management, and never measure your results. You can hire accountants to do this for you, and success in business doesn't really depend upon the numbers anyway.</li>
<br /><br />
<li> Go it alone; because it is your business you must do everything yourself. Do not bother even getting started in business until you are comfortable you can be your own lawyer, accountant, engineer (or designer), marketing and financial expert. <br /> <br />A visionary is worthless if he or she can't master every little detail of the business. And detail people are worthless if they cannot appreciate the strategic vision of the business. Strive to be both a visionary and a detail person.</li>
<br /><br />
<li> Give away lots of stock in your business to everyone you know - it doesn't cost anything, and isn't it better that lots of people have a piece of the action?</li>
<br /><br />
<li> 7. If you learn something about your business that will give you a competitive advantage, tell the world about it, especially at an industry conference or "networking" session.</li>
<br /><br />
<li> Choose a business that requires skills, money, other resources or a personality that you do not currently have. You can always get these from other people. Besides, isn't that half the fun of small business - doing the impossible?</li>
<br /><br />
<li> Confuse your business and your personal lives - don't bother distinguishing the two because you are simply too busy. Actually, what are you even DOING going on a vacation? Bring all of your technology along and check it every few minutes. If an employee is "watching the store" while you're away, text him every hour or so. You can never trust these people, and they will never develop if you don't ride herd on them every minute.</li>
<br /><br />
<li> Forget what it was that made you want to start a small business in the first place - in the long run it doesn't matter what success means to you as long as you're successful. If you even have the time to think about your personal goals, you aren't working hard enough.</li>
</ol> <br />I see businesses fail every day because the founders have adopted one or more of these attitudes. If you find yourself agreeing with any of these statements, make a commitment to change your thinking. Now.
<p> </p>
<strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
<p> </p>
Staff
2015-07-20T07:00:00Z
Report from the 2015 eBay Radio Party and Conference
Staff
http://www.DrLaura.com/b/Report-from-the-2015-eBay-Radio-Party-and-Conference/-570477906921203181.html
2015-07-13T16:49:00Z
2015-07-13T16:49:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /></a></p>
<p>Last month over 200 top-level eBay sellers attended the 12th annual eBay Radio Party and Conference in Las Vegas. This event, sponsored by the <a href="http://www.voicemarketingradio.com" target="_blank">eBay Radio podcast</a>, has become the must-attend national "meetup" for people who sell on eBay.<br /><br />I always look forward to this event each year (my talk this year was on "Social Media Marketing and the Law"), as I get to catch up with the latest developments and resources for eBay sellers. <span> <br /><br /></span>The big item of discussion at this year's conference was <a href="http://pages.ebay.com/sellerinformation/news/springupdate2015/index.html" target="_blank">eBay Seller Release 15.1</a>, warning that unique product identifiers - such as Universal Product Codes (UPCs) and Global Trade Item Numbers (GTINs) - must be included in new listings of branded items in "new" and "manufacturer refurbished" condition within many categories starting June 29, 2015. Sellers of antique, collectible and one-of-a-kind goods will not be affected by this change.<br /><br />Up to now, sellers have not be required to include product identifiers in their listings, but only suitable "keywords" to help buyers find the products they want. As pointed out by eBay spokesperson Jim "Griff" Griffith, the host of eBay Radio, while this makes life easier for newbie and inexperienced sellers who may not be familiar with product identifiers and how they work, the process is often frustrating for buyers. Someone searching for a particular Versace® product (for example) will see lots of unrelated and irrelevant items in the eBay search engine results. Requiring product identifiers in all listings will, in eBay's view, lead to more accurate search engine results and a better buying experience.<br /><br />The new rules will, however, pose a challenge to new or inexperienced sellers who will have to add product identifiers to their "learning curve" when learning to sell on eBay. Release 15.1 does not say what resources (if any) eBay will make available to sellers to help them identify the correct product identifiers for their merchandise. <br /><br />The new rules will also (although this is not stated anywhere in the eBay release) make it a lot easier for eBay to identify sellers practicing "retail arbitrage" - buying branded or trademarked goods at retail stores and then reselling them at higher prices on eBay without permission or authorization from the product manufacturers - and shutting down their listings if the manufacturers complain about the practice.<br /><br />Here are some other new things I learned about at the conference:<span> <br /><br /></span>Many eBay sellers are fans of the cable TV reality show "<a href="http://www.thrifting-with-the-boys.com" target="_blank">Thrifting With the Boys</a>", which teaches folks how to identify best-selling secondhand merchandise at local thrift stores, bargain shops and other venues. The bad news is that the show has not been renewed for another season (although I suspect it will continue on YouTube® and other online venues). The good news is that co-host Bryan Goodman has written and self-published one of the best - and hands down the funniest -- book on negotiating I have ever read that I have not myself written. The title is <em>Everything is Negotiable</em>, and it's available wherever books are sold (even, maybe, on eBay).<span> <br /><br /></span>So, you found an interesting collectible item at a local thrift shop, garage sale or flea market and have absolutely no idea what it is, much less what it's worth? <a href="http://www.worthpoint.com" target="_blank">WorthPoint Corporation</a> has created "Worthopedia" - "the largest online database of antiques, collectibles and other one-of-a-kind items in the antiques business" -- featuring full access to "sold for" prices dating back eight years and unlimited access to millions of sale records with item details and images.<span> <br /><br /></span>eBay auction expert <a href="http://www.thequeenofauctions.com" target="_blank">Lynn Dralle</a> offers these tips (among others) to new sellers:</p>
<ul>
<li>you should make at least 10 times your purchase price when selling on eBay</li>
<br />
<li>list at least 50 to 100 new items at auction each week</li>
<br />
<li>always auction first before selling at a fixed price (otherwise you're leaving money on the table)</li>
<br />
<li>when selling fixed-priced items in your eBay Store, price "super high"</li>
<br />
<li>use eBay's "Markdown Manager" feature consistently so you will not be grossly overpricing the market</li>
<br />
<li>always use eBay's "Best Offer" feature on every item in your store.</li>
</ul>
<p><br /><a href="http://www.coolebaytools.com" target="_blank">Marsha Collier</a>, author of the best-selling "eBay for Dummies" series of books, introduced the audience to <a href="http://www.periscope.tv" target="_blank">Periscope®</a>, a mobile phone app owned by Twitter® that allows users to capture streaming video in real time, post it instantaneously to social media and get immediate feedback from users around the world. It's available for both the Apple® and Android® mobile platforms, and is guaranteed to increase the income of copyright lawyers throughout the world.<br /><br />A number of software products offer to help eBay sellers automate and manage their listings, control their inventories, and handle bookkeeping chores. The latest entry is <a href="http://campaigngo.com" target="_blank">CampaignGo®</a>.<br /><br />It's no secret that success on eBay depends on building a profitable niche - the narrower, the better. The "nichiest" sellers I met at the conference are:</p>
<ul>
<li>Barbara Baur, <a href="http://www.thelicenseplateguy.com" target="_blank">vintage auto license places</a> </li>
<br />
<li>Leslie Ann Batistich, <a href="http://www.hoof-it.com" target="_blank">hoof care products for horses</a>.</li>
</ul>
<br /><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2015 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
<p> </p>
Staff
2015-07-13T16:49:00Z
Should You 'Ghostwrite' Other People's Social Media?
Staff
http://www.DrLaura.com/b/Should-You-Ghostwrite-Other-Peoples-Social-Media/879363569222751273.html
2015-06-22T22:49:00Z
2015-06-22T22:49:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /><br /></a></p>
<p>"I am a social media marketing consultant. Basically, I help small businesses and others build a marketing presence on Facebook, LinkedIn, Twitter, Pinterest and other social media websites.<br /><br />Normally, I just set up the client's pages on these sites and post content to them whenever the client sends me material to post. For example, a restaurant will send me their evening specials and I will 'tweet' those on Twitter. <br /><br />Lately, however, a couple of clients have asked me to generate original content for their social media posts because they don't have the time to do this themselves. The money they're offering is fairly tempting, but I want to be sure I'm not putting myself or my reputation at risk by doing this."<span> <br /><br /></span>This sounds like a great opportunity, but you will have to be careful how you go about doing this work.<span> <br /><br /></span>Right now, you don't have a lot of liability, because you are merely a "conduit" for your client's content. When I look at your client's Facebook page, I see only information and content generated by your client, not you. <br /><br />Your clients can get into a lot of trouble, however, if they send you content that is illegal or otherwise is going to create legal problems for them. As an "expert" on social media, it is your duty to review the content they send you and warn them of any potential problems before you post the content online. Also, your standard contract with your clients should have an "indemnity clause" saying that the client, not you, is solely responsible for the content they are asking you to post on social media. That language should guarantee that:<span> <br /> </span></p>
<ul>
<li>the content is original, accurate and complete </li>
<br />
<li>the client is the owner of copyright to the content </li>
<br />
<li>the content does not infringe anyone else's copyright (in other words, the client didn't steal it from the original creator or copyright owner) </li>
<li>the content is not offensive and does not libel or slander any individual or group </li>
<br />
<li>the content otherwise complies completely with the law</li>
</ul>
Your contract should also say you have the right to pull any content offline if you receive notice that the content is problematic (although that's very difficult to do on most social media websites - once something is posted there it usually stays there forever).<span> <br /><br /></span>Your relationship with the client will change completely once you start creating original content for the client's social media pages. First, some social media sites (such as Facebook) expressly prohibit "ghostwriting" of content in their user's agreements, so check these first.<br /><br />Second, as the author of the content and an independent contractor to your client, you own all the intellectual property rights (such as copyright) to the content. If the client is smart (or has a smart lawyer) they will want you to assign your copyright to them once they pay for the content. By doing that, you are selling and giving up all rights to that content. You cannot use that same content for another client, or for yourself (for example, as part of your marketing portfolio), without the client's permission. <span> <br /><br /></span>Because of that, you should insist on an "acknowledgment" or "credit" clause in your client contract saying that although the client owns copyright to the content, they will not use it without giving you due credit online. If you are taking photos for your client's social media page, the photo will be accompanied by a standard "photo credit" acknowledging you as the photographer. If you are writing articles for the page, your byline will appear underneath the article's title. You still won't be able to use the content elsewhere, but at least your authorship will be recognized.<span> <br /><br /></span>Lastly, because you are now the author of the content, it is your responsibility to guarantee to the client that they won't have legal problems because of the content you create. That "indemnity clause" we talked about putting in your client contract will now be turned around and pointed directly at you. Before sending any content to the client for review, you will need to make 100% sure that the content is original, that it doesn't infringe anyone else's copyright, that it won't offend anyone, and so forth. Make one mistake, and you're the one who will have to fight the battle in court.<span> <br /><br /></span>Some clients - your more established ones - may also require you to obtain "publisher's liability insurance" in case your content creates legal problems for them. Such coverage is not cheap and may run you a couple of thousand dollars a year in premiums.<span> <br /><br /></span>So, should you write content for your clients' social media pages? Unless you are intimately familiar with the client and its business, I would say "no", unless the client agrees to approve every piece of content in writing before you post, and absolves you of any legal liability for the content once they give their approval.<br /><br /> <strong style="color: #000000;"><br />Cliff Ennico</strong><span style="color: #000000;"> </span>(<a href="http://www.succeedinginyourbusiness.com/" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <a href="http://www.amazon.com/gp/product/1593374062?ie=UTF8&tag=sucinyoubus-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=1593374062" target="_blank">“Small Business Survival Guide</a>,” “<a href="http://www.amazon.com/gp/product/081447425X?ie=UTF8&tag=sucinyoubus-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=081447425X" target="_blank">The eBay Seller’s Tax and Legal Answer Book</a>” and 15 other books. <span style="color: #000000;">COPYRIGHT 2014 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</span>
<p> </p>
Staff
2015-06-22T22:49:00Z
When Selling on Amazon.com, Success Is Spelled 'SCOE'
Staff
http://www.DrLaura.com/b/When-Selling-on-Amazon.com,-Success-Is-Spelled-SCOE/-622203011773636013.html
2015-05-18T15:14:00Z
2015-05-18T15:14:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /><br /></a></p>
<p>Over two million Americans make a full-time or part-time living selling merchandise on Amazon.com.<span> <br /><br /></span>Roughly 200 of them attended last week's<a href="http://www.scoe.biz" target="_blank"> Sellers' Conference of Online Entrepreneurs</a> (SCOE) in Philadelphia, a semi-annual trade show focused entirely on the do's and don'ts of selling on Amazon, eBay, Etsy, and other popular online retail platforms.<span> <br /><br /></span>Attendees were treated to three whole days of world-class speakers (including - full disclosure - yours truly, who gave a talk titled "Beyond Amazon and eBay: Building a Successful e-Commerce Empire, One Step at a Time"), presentations by 36 companies providing goods and services to Amazon sellers, and networking opportunities with sellers from the United States, Canada, China, Japan and Israel in virtually all Amazon merchandise categories.<span> <br /><br /></span>Here are some cool things I learned, and some new resources I learned about while there. <span> <br /><br /></span>"You cannot overestimate the importance of product reviews when selling on Amazon," according to Chad Rubin, founder of <a href="http://www.crucialvacuum.com" target="_blank">Crucial Vacuum</a>, the leading seller of vacuum cleaners on Amazon, pointing out that the best-selling (and highest rated) vacuum cleaner on Amazon is not available in Target, Wal-Mart, or indeed anywhere else in the "brick and mortar" world.<span> <br /><br /></span>If an item isn't selling quickly on Amazon, sellers often have to reprice the item frequently in order to stay in Amazon's "buy box", and that's tough when you have hundreds of items listed. <a href="http://www.feedvisor.com" target="_blank">FeedVisor</a> is a repricing software program that uses a self-learning, constantly improving algorithm which checks hundreds of thousands of competitive products every minute and automatically reprices your items so you stay competitive.<span> <br /><br /></span>"You know those Coinstar machines in the supermarkets where you can get rid of your excess coins and they charge you an 8% processing fee? Many of these machines offer Amazon gift cards in lieu of cash back, and if you choose to take the gift card, they often will waive the 8% fee!", according to Jason T. Smith, star of the "<a href="http://www.spike.com/shows/thrift-hunters" target="_blank">Thrift Hunters</a>" reality television show on the Spike cable channel.<span> <br /><br /></span>Wouldn't it be great if, instead of listing your items separately on the 22 most popular online retail platforms, you only had to do it once and push a button? Check out <a href="http://www.zoobilee.com" target="_blank">Zoobilee</a> - you enter your inventory to your Zoobilee account via upload or FTP. Your listing is then sent to the venue(s) you select at the price(s) you specify, along with your photos and other images.<span> <br /></span><br />"We used to measure advertising success in terms of the cost of every thousand customers reached, or CPM. Today, thanks to Facebook and other social media sites that track your online activity, we have a new metric - CPP or 'cost per pixel'," according to <a href="http://www.colderice.com" target="_blank">John "ColderICE" Lawson</a>.<span> <br /><br /></span>You probably know that Uber.com offers peer-to-peer "sharing economy" taxi service in many large American cities. But did you know that <a href="http://www.roadie.com" target="_blank">Roadie</a> offers a similar service for package delivery? These guys are going to give UPS a run for their money.<span> <br /><br /></span>You would like to sell in Amazon's popular "Fulfillment By Amazon" (FBA) program, but you are concerned that you will have to collect sales tax in each state where FBA warehouses your merchandise. To respond to this problem, a number of smaller companies offer "in state" warehousing and fulfillment services so you can participate in FBA without your merchandise ever leaving your home state. If you are a seller in Michigan, for example, check out <a href="http://www.portcityfulfillment.com" target="_blank">Port City Fulfillment Center</a>.<span> <br /><br /></span>And if you do have to collect sales tax in another state, <a href="http://www.taxjar.com" target="_blank">TaxJar</a> will do the paperwork for you.<span> <br /><br /></span>Still using Google AdWords to find the right keywords for your product listings? <a href="http://www.merchantwords.com" target="_blank">MerchantWords</a> has an inexpensive database of the top 20 million Amazon keywords.<span> <br /><br /></span>Many Amazon sellers are looking to sell their own branded or "private label" merchandise online. The key to private label success, according to <a href="http://www.millionairedrive.com/" target="_blank">MillionaireDrive</a> CEO Danny Hausmann, is to "choose items that weigh less than three pounds, can be priced between $20 and $300, are durable, small and easy to pack, and have no obvious liability risks."<span> </span><a href="http://www.amazonconsultingexperts.com" target="_blank">Sam Cohen</a>, a $10 million a year Amazon seller, advised attendees to "back up the truck" on merchandise tied to this year's new Star Wars movie, which he predicted would leave the merchandise sales records set last year by Disney's "Frozen" in the dust.<span> <br /><br /></span>Speaking of "frozen," many speakers at SCOE offered tips to attendees on what to do when Amazon shuts down your selling account due to a perceived infraction of one of their many rules. According to Amazon seller coach <a href="http://www.sellercoaching.com" target="_blank">Bob Willey</a>, the key is to make sure your e-mail to Amazon's dispute resolution team contains the words "buyer satisfaction". Doing so sends the signal you are a conscientious seller and, according to Willey, "there's a greater chance your message will reach a sympathetic support person."<span> </span>The next SCOE will take place October 2-4, 2015 in Seattle, Washington. If you sell on Amazon, book your reservations now.</p>
<ul>
</ul>
<br /> <strong style="color: #000000;">Cliff Ennico</strong><span style="color: #000000;"> </span>(<a href="http://www.succeedinginyourbusiness.com/" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <a href="http://www.amazon.com/gp/product/1593374062?ie=UTF8&tag=sucinyoubus-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=1593374062" target="_blank">“Small Business Survival Guide</a>,” “<a href="http://www.amazon.com/gp/product/081447425X?ie=UTF8&tag=sucinyoubus-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=081447425X" target="_blank">The eBay Seller’s Tax and Legal Answer Book</a>” and 15 other books. <span style="color: #000000;">COPYRIGHT 2014 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</span>
<p> </p>
Staff
2015-05-18T15:14:00Z
4 Reasons to Do Anything
Staff
http://www.DrLaura.com/b/4-Reasons-to-Do-Anything/171001774728606008.html
2015-05-11T20:48:00Z
2015-05-11T20:48:00Z
<p><strong><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /><br /></a></p>
<p>“I left corporate America a few years ago. While I wouldn’t go back in a million years, I have to confess that I’m struggling right now.<span> <br /><br /></span>In addition to running my own Internet business out of the house, I’m on the boards of three local nonprofit organizations, and I’ve been teaching classes as an ‘adjunct professor’ at two local colleges. I also ran (unsuccessfully) for a local public office last fall. I have two kids in high school and an elderly Mom who lives with me.<span> <br /><br /></span>I think I’m pretty good at multitasking, but I’m running myself into the ground and am barely making a living. I need to cut back on some of this stuff, but I don’t know where to begin. Do you have any ideas?”<span> <br /><br /></span>In our increasingly connected, distracted, unforgiving, multidimensional and fast-paced world, managing your time is becoming increasingly difficult, if not downright impossible. <span> <br /><br /></span>But here is some basic math: there are exactly 24 hours in a day, and seven days a week. Nobody has any more time, or any less. There are only so many things you can do in a day, and these get fewer and fewer as your body ages. If you are doing too much, there is only one cause: you are saying “yes” to too many people that want you to do stuff. Often, the only way to get back to a manageable schedule is to cut some things out -- ruthlessly, and with the understanding you might turn some people off by doing so.<span> <br /><br /></span>My father taught me an important lesson when I was in high school. Like this reader, I was overtaxed: I was taking seven classes a day (including three difficult Advanced Placement courses), was President of three after-school student organizations, acting in my school’s Drama Club, and had a six-day-a-week newspaper delivery route with 92 private homes. Frankly, I was killing myself. I had little time for friends, girls, and fun.<span> <br /><br /></span>Here’s what Dad told me: “Cliff, there are only four reasons to do anything in life. Either it brings you money, helps you make connections, teaches you something, or you enjoy doing it. If something you’re doing doesn’t fit in any of those boxes, and you are not legally required to do it, why in Hell are you doing it?” <span> <br /><br /></span>Let’s apply Dad’s thinking to our reader’s situation.<span> <br /></span></p>
<ol>
<li><strong>The Activity Brings You Income.</strong> Your first priority as a self-employed individual (heck, as an adult human being) is to support yourself and your immediate family. If you have not achieved the financial stability to do that, getting there should be priority Numero Uno. This reader says she is “barely making a living.” Everything else should go on a back burner until that improves. </li>
<br />
<li><strong>The Activity Helps You Make Connections. </strong> The next priority is marketing and network building. No matter how busy I am keeping my law clients satisfied, I always take time out to give talks to local organizations, write articles for business periodicals and websites, and do anything else necessary to get my name “out there” and build my base of clients and referral sources. If I don’t do those things, the telephone stops ringing, my fan base stops growing, and the e-mail Inbox is empty (well, except for the usual junk messages).</li>
<br />
<li><strong>The Activity is Educational. </strong>Education and learning are not just things you do in school. They are lifetime activities; stop learning and you soon become irrelevant. Always find time to read at least 50 pages a day. Take an adult education class that will help you improve your productivity. Learn a new skill every three months that will help you with your income-generating and marketing activities. </li>
<br />
<li><strong>The Activity is Fun or Personally Fulfilling. </strong>“You only go around once in life; you have to go for all the gusto you can” (if that sounds vaguely familiar, you are definitely a baby boom geezer: it comes from a 1960s TV commercial for Schlitz beer). The time to enjoy life is now. You may not be able to do it when you retire. Heck, you could drop dead tomorrow. Set aside some “me” time for a few hours each week. </li>
</ol><span><br /></span>So what should this reader do? In my opinion, she has two clear priorities: make more money, and get her two kids through college without going bankrupt. <br /><br />Here are my suggestions:<br />
<ul>
<li>Nonprofit boards are notorious “time vampires” – quit them all unless you are making amazing connections there</li>
<br />
<li>Don’t run for office again, unless the publicity can help you market your business</li>
<br />
<li>Get the kids to help more with Grandma (they can), and vice versa (if she can)</li>
<br />
<li>Weigh the hourly income of teaching “adjunct” courses (what they pay you divided by twice the time you actually spend in class) against the additional hourly income you can realize by spending more time on your business, doing temp work, or getting a part-time job.</li>
</ul>
<br /> <strong style="color: #000000;">Cliff Ennico</strong><span style="color: #000000;"> </span>(<a href="http://www.succeedinginyourbusiness.com/" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <a href="http://www.amazon.com/gp/product/1593374062?ie=UTF8&tag=sucinyoubus-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=1593374062" target="_blank">“Small Business Survival Guide</a>,” “<a href="http://www.amazon.com/gp/product/081447425X?ie=UTF8&tag=sucinyoubus-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=081447425X" target="_blank">The eBay Seller’s Tax and Legal Answer Book</a>” and 15 other books. <span style="color: #000000;">COPYRIGHT 2014 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</span>
<p> </p>
Staff
2015-05-11T20:48:00Z
8 Places to Find Work-at-Home Opportunities in Your Own Town
Staff
http://www.DrLaura.com/b/8-Places-to-Find-Work-at-Home-Opportunities-in-Your-Own-Town/445161005443459472.html
2015-05-04T23:20:00Z
2015-05-04T23:20:00Z
<p><strong><br /></strong><strong>By Diana Schneidman<br /></strong><a href="http://www.standup8times.com/" target="_blank">standup8times.com</a></p>
<p><br />One of the obvious benefits of working at home is that it doesn't matter where your employing company is located. You have a worldwide market for your services.<br /><br />Given that there are certain benefits to having international opportunities, why would you prefer to work for a local company?<br /><br />There are several pluses to working locally even if you do the actual work from a desk right in your spare bedroom.<br /><br />The first advantage is that it may be easier to land the job. You may already have personal connections with the hiring manager. Even if you don't have an "in" right now, it may still be easier to set your sights on what you want and go after it.<br /><br />The second advantage is that you may be more effective on the job. You have easier access to your supervisor and coworkers. You may be able to attend occasional staff meetings and trainings.<br /><br />The third advantage is that you may be able to develop personal relationships with coworkers in your company. One downside to working out of your home is that it can be lonely. You can work in the same position for years without developing ties to others. If you are the type of person who relishes friendships, being local can facilitate meeting coworkers for lunch or happy hour.<br /><br />The fourth advantage is that you have ready access to the company if you eventually decide to take a "regular" job, for instance, if your family responsibilities change. If your work-from-home experience has been successful, you can perhaps build upon it to land a supervisory or leadership role thanks to your inside track.<br /><br /><strong>The first step . . .</strong><br /><br />The first thing to do is to decide what type of work-at-home job appeals to you and fits your talents.<br /><br />You can't write a resume (or complete a job application form) if you don't know what you are looking for. It's not the responsibility of HR to figure out from vague career objectives what you can do for them. If you can't decide what you want, HR cannot figure it out either in the few seconds they typically devote to scanning each resume.<br /><br />Start with online research. (Browse right here through <a href="http://www.theworkathomewoman.com/" target="_blank">www.theworkathomewoman.com</a> to investigate the work offsite employees are doing.)<br /><br />Then tailor your resume to match what you are seeking. Begin with a brief statement in bold at the top of the resume. It may be as simple as one or two job titles that are common to your work objectives, such as Customer Service Representative or Telephone Claims. Or it may be slightly less specific, such as Marketing Specialist or Sales Support. Prefer more specific titles over less targeted titles whenever possible. It is easier for hiring staff to broaden their consideration to something else they have open than for them to narrow in on what you want if you offer them no ideas.<br /><br /><strong>Where to find local companies of interest to you</strong><br /><br /><strong>1. Drive around the area.</strong><br /><br />Jot down company names to research online at home. The easiest way to do this is for one person to drive and a second person to write. When you find a large office building or office park, go inside and write down companies from the lobby directory.<br /><br />The next step is to do some research and decide how to approach the best companies. If you have a personal connection, talk with that person first. If not, do online research to identify the most likely hiring manager and contact them directly. It may even be advisable to contact HR-this is not usually considered the best way to get into a company, but it is far stronger than inaction.<br /><br /><strong>2. LinkedIn.</strong><br /><br />Look through your list of contacts to see who you know that works at a candidate company. You're not on LinkedIn? Now is as good a time as any to create your profile and start connecting with people. (Hiring managers regardless of their location are likely to look you up on LinkedIn before they interview you so be certain to <a href="http://www.theworkathomewoman.com/linkedin-career/" target="_blank">polish your LinkedIn profile</a> early in your job campaign.)<br /><br /><strong>3. Facebook.</strong><br /><br />Get the word out on Facebook even though LinkedIn is typically more effective than Facebook in finding work. LinkedIn is for professional connections; Facebook is more about personal friendships. Still, if you are looking for local work, your local Facebook friends are excellent sources for work-at-home leads in your community.<br /><br /><strong>4. The local chamber of commerce.</strong><br /><br />Their events are excellent for networking, and their websites list area companies, including contact information. Go beyond the C of C in your own community; multiple urban and suburban areas in your general vicinity typically have <a href="http://www.theworkathomewoman.com/take-advantage-of-every-business-opportunity-your-local-chamber-of-commerce/" target="_blank">chambers</a>.<br /><br /><strong>5. Large local organizations.</strong><br /><br />Set your sights beyond the small associations in which you participate. Churches and other religious organizations, parent-teacher associations, volunteer groups, and political committees all expose you to people who may know of work-at-home hiring opportunities.<br /><br /><strong>6. Electronic databases of companies.</strong><br /><br />Ask about this at your local library. Many provide free online access to such databases. (The database at my library is called AtoZ Databases.) You can often search by industry, industry code, number of employees, zip code, city, and other variables to find companies of interest to you. You'll be surprised at how many relevant businesses that you have never heard of are close to home.<br /><br /><strong>7. Local free newspapers and magazines.</strong><br /><br />They are available on racks at restaurants and professional buildings or they may even be delivered right to your driveway. Read the classified ads, of course, for leads, but also check out the display ads and the news stories to deduce opportunities from the info they provide.<br /><br /><strong>8. Job clubs.</strong><br /><br />Many attendees are looking for a "regular job," but they are as likely to know of work-at-home opportunities as anyone else. Plus you'll pick up ideas on how the corporate hiring process continues to evolve and the best ways to get in the door.<br /><br />There may be loads of attractive work-at-home opportunities right down the street from you. With a little effort, you can identify area companies of interest to you and even people who can help you get in the door.You may feel a little timid at first, but as you start networking and applying for work, you will be more at ease. You will find that family, friends, and mere acquaintances will want to support you in your quest. Reach out to them and let them help you!<br /><br /><br /><strong>Diana Schneidman (<a href="/www.standup8times.com" target="_blank">www.standup8times.com</a>)</strong>Ready to find opportunities to make great money right from your home? Diana Schneidman is the author of <a href="http://www.amazon.com/gp/product/0991015304/ref=as_li_tl?ie=UTF8&camp=1789&creative=390957&creativeASIN=0991015304&linkCode=as2&tag=thwoathowo-20&linkId=BP53ZRK22G2YFCPK" target="_blank">Real Skills, Real Income: A Proven Marketing System to Land Well-Paid Freelance and Consulting Work in 30 Days or Less</a>, available on Amazon. She helps people who want to land well-paid freelance and consulting work quickly through her publishing and coaching practice, which is named <a href="http://www.standup8times.com/" target="_blank">Stand Up 8 Times</a> after a Japanese proverb: Fall down seven times, stand up eight. Diana walks her talk-she is also a freelance writer and researcher specializing in the insurance and asset management industries. Permission granted for use on DrLaura.com.</p>
Staff
2015-05-04T23:20:00Z
Dealing With Competition: Knowing Your Enemies Part 2 of 2
Staff
http://www.DrLaura.com/b/Dealing-With-Competition:-Knowing-Your-Enemies--Part-2-of-2/-942353034584794614.html
2015-04-20T07:05:00Z
2015-04-20T07:05:00Z
<p><strong><br /><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /></a></p>
<p>Once you have identified the four different types of competitor (identified in last week's column), you now have to develop a strategy for crushing each and every one of them.<span> <br /><br /></span>No matter what business you are in, your success will come to some extent from the failures of others. And you can't just sit around and wait for them to make mistakes. You have to put pressure on them until they do.<span> <br /><br /></span>If you are looking to raise capital from investors, you will need to understand and clearly articulate your advantage over your competitors. Your competitive advantage should also be part of your "elevator pitch" and all of your marketing materials. Simply put, you need to be able to explain to people what makes your business better, different and more likely to survive over the long haul than other businesses.<span> <br /><br /></span>Most businesses think they are better or different than other businesses, but you would be surprised: your actual advantage in the marketplace may be quite different than what you think it is.<span> <br /><br /></span>Here are some examples.<span> <br /><br /></span><strong>A Better Product or Service.</strong> This is what people most commonly think of when they think of "competitive advantage." Your product or service is simply superior to others'. This may well be true, but unless you have patent protection or there are "barriers to entry" (such as government regulations or a licensing requirement) for other people who want to get into your business, your success will soon spawn "copycats" who will eat into your business. To stay ahead of "copycats," you will have to make constant improvements and changes to your products or services. Sooner or later, you will get tired, fall down and they will catch up and eat you.<span> <br /><br /></span><strong>Your Pricing. </strong>People do not want to pay "by the hour" or "by the day" anymore. They are willing to pay reasonable fees for services, but they want to know up front, to the penny, what these will cost. They want flat fees - write one check, and you're done. Service businesses and professionals that can learn how to make money on flat fees will conquer their competition. <br /><br /><span> </span><strong>How You Deliver the Goods.</strong> People are also basically lazy. They don't want to work to get your products and services. They want convenience. Give it to them, and you will beat your competition. If you are a local pizza parlor, offer to deliver every single order to your customers' homes. On a rainy Friday night, people do not want to pack the kids into the SUV and drive to your store to pick up a pizza that's already ice cold.<br /><br />Don't require a minimum purchase - deliver ALL the pizzas for a slight additional charge. <span> <br /></span><br /><strong>Your Location.</strong> Position your business so you are close to your customers. People will not travel more than 5 miles to attend a gym or buy a pizza. If the residential neighborhoods are located in the north end of town, don't rent space in the south end of town where the other businesses are.<br /><br />If you are an antique store, rent space in a mall where there are other antique stores. People like the idea of "one stop shopping," especially for art and antiques.<br /><br /><strong>Who You Are. </strong>Do you speak Spanish, Chinese, Polish or Albanian? Your community probably has numerous ethnic communities that are not being served adequately by local businesses because of a language barrier. Let them know you "speak their language" and you may find thousands of loyal customers your competitors can't reach.<br /><br />Here's a trick question: what three words are guaranteed - GUARANTEED - to double your business if you add them to your business cards, stationery, website and other marketing materials?<br /><br />The three words: "se habla espanol."<br /><br /><strong>Your Personality. </strong>Your personality may be your strongest competitive advantage, especially in personal service businesses. People are often frightened of dealing with lawyers, accountants, architects, plumbers and other professionals because:</p>
<ul>
<li>they are afraid they are going to be overcharged</li>
<li>they are afraid the professionals will be looking down on them because they need their services </li>
<li>they are afraid the professionals will sell them services they don't really need.</li>
</ul>
<p>There's an old saying among lawyers that "a laughing jury never convicts." Any middle school student who was ever picked on by bullies will tell you that making them laugh prevents many a beating. <br /><br />If you have the ability to reach out to your customers, invite them into your world, make them comfortable (or even laugh), and show them you put your pants on one leg at a time just like they do, they are much more likely to buy your services than your competitors'.<br /><br />At the end of my law firm website at <a href="http://www.cliffennico.com" target="_blank">www.cliffennico.com</a>, I've added a simple call to action: "still have questions? Please call or e-mail. I don't bite." Yes, I know, it sounds really hokey, but I get tons of business because of it. <br /><br />My competitors don't.</p>
<br /> <strong style="color: #000000;">Cliff Ennico</strong><span style="color: #000000;"> </span>(<a href="http://www.succeedinginyourbusiness.com/" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <a href="http://www.amazon.com/gp/product/1593374062?ie=UTF8&tag=sucinyoubus-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=1593374062" target="_blank">“Small Business Survival Guide</a>,” “<a href="http://www.amazon.com/gp/product/081447425X?ie=UTF8&tag=sucinyoubus-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=081447425X" target="_blank">The eBay Seller’s Tax and Legal Answer Book</a>” and 15 other books. <span style="color: #000000;">COPYRIGHT 2014 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</span>
<p> </p>
Staff
2015-04-20T07:05:00Z
Dealing With Competition: Knowing Your Enemies Part 1 of 2
Staff
http://www.DrLaura.com/b/Dealing-With-Competition:-Knowing-Your-Enemies--Part-1-of-2/-142253785058760019.html
2015-04-13T07:05:00Z
2015-04-13T07:05:00Z
<p><strong><br /><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /></a></p>
<p>As my readers know, I frequently judge business plan competitions throughout the United States.<span> <br /><br /></span>Just about every time I do one of these, I hear an entrepreneur say that his business plan “has no competition.” <span> <br /><br /></span>Every time this happens, the audience laughs. Why? Because they know better. Every business has competition. If you don’t have competition, you are probably so far ahead of where things are now that nobody will understand or buy understands your product or service. As the saying goes, you are “so far ahead of the curve” that you have “disappeared from view.” Home-delivery drones, anyone?<span> <br /><br /></span>Seriously, though, I understand why some entrepreneurs think they will not encounter competition. There are two basic reasons for this delusion:</p>
<ul>
<li>younger entrepreneurs have been taught to believe that competition and aggression of any kind is evil – they believe we are now living in the world of John Lennon’s “Imagine,” and that everyone will fall down and worship the entrepreneur’s plan as soon as it is made public</li>
<br />
<li>more commonly, though, the entrepreneur who says he or she “has no competition” simply hasn’t looked hard enough to find them.</li>
</ul>
<p>Competitors come in four basic varieties. Let’s look at each of them.<br /><br /><br /><strong>The “Enemy.”</strong> These are the easiest competitors to spot. They are doing exactly the same things you are doing, targeting the same customers, and trying to satisfy the same fears and passions you are trying to satisfy (if you doubt that marketplaces are ruled by people’s fears and passions, check out my award-winning video at <a href="https://www.youtube.com/watch?v=mNe7hUAkx4M" target="_blank">https://www.youtube.com/watch?v=mNe7hUAkx4M</a> – it will change your life)<br /><br />If you are operating a pizza parlor on Main Street, all of the pizza parlors within a five mile radius of your business are “enemies.” <br /><br /><br /><strong>The “Substitute.”</strong> This is a trickier competitor to spot. The “substitute” doesn’t look anything like you, but targets the same customers and tries to satisfy the same fears and passions you are.<br /><br />If you are operating a pizza parlor on Main Street, the other local pizza parlors are “enemies,” but the Chinese takeout place across the street may well be a “substitute” – if people are looking for a quick lunch, they can choose between a slice of pizza and an eggroll, can’t they?<br /><br />To find “substitutes,” ask the question: if people can no longer afford my products and services, what cheaper products and services would they buy instead?<br /><br /><br /><strong>The “Big Box”. </strong> A “big box” competitor is someone who is much larger than you, who targets the same customers, and tries to satisfy the same fears and passions. They may not be in your market as yet, but if they ever did come into your market, they would use their economies of scale to wipe you out.<br /><br />Examples of “big box” competitors are:</p>
<ul>
<li>“big box” retailers such as Home Depot, WalMart and CostCo</li>
<br />
<li>“casual dining” restaurant chains such as Olive Garden, Chipotle’s, and Applebee’s</li>
<br />
<li>chain stores such as “The Gap”</li>
<br />
<li>franchises of any kind (yes, these are “Mom and Pop” businesses at the local level, but they are backed by a national advertising program and can do things to promote their businesses you can only dream of)</li>
</ul>
<p><br />The only way to compete with a “big box” is to offer your customers something they don’t. Here are some examples:</p>
<ul>
<li>there’s a Home Depot within 10 miles, but your local hardware store sells light bulbs, garden hoses and other common household items and is more conveniently located than the Home Depot – the local contractors will always go to the Home Depot to save money when they buy pallets of lumber, but if someone is looking to buy just one light bulb to replace the one in the bathroom that just burned out, they will not travel 15 miles and wait on long lines to save 25 cents – they will buy from the local store</li>
<br />
<li>brick-and-mortar bookstores are disappearing from the landscape, except in one place. Airports. If you are flying to Europe or Asia and forgot to bring a book with you for the flight . . . </li>
</ul>
<p>You always want to know where the nearest “big box” competitor is, and how soon it will be before they open an outlet in your face.<br /><br /><strong><br />The “Obsoleter.” </strong> Yes, I know. That’s not a real word (unless I’ve just coined it now). But it’s the best word I can think of to describe the most insidious, and sometimes the most powerful, type of competitor.<br /><br />An “obsoleter” is a person, a company or a technological innovation that will make your products and services obsolete.<br /><br />Right now, the Internet is the biggest “obsoleter” for many brick and mortar businesses. Buying online is so much more convenient (and often cheaper) than buying in the physical world. You can find anything you want online, often with free shipping. If people can buy the stuff you sell online, you will sooner or later be out of business. <br /><br />More next week . . .</p>
<br /> <strong style="color: #000000;">Cliff Ennico</strong><span style="color: #000000;"> </span>(<a href="http://www.succeedinginyourbusiness.com/" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <a href="http://www.amazon.com/gp/product/1593374062?ie=UTF8&tag=sucinyoubus-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=1593374062" target="_blank">“Small Business Survival Guide</a>,” “<a href="http://www.amazon.com/gp/product/081447425X?ie=UTF8&tag=sucinyoubus-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=081447425X" target="_blank">The eBay Seller’s Tax and Legal Answer Book</a>” and 15 other books. <span style="color: #000000;">COPYRIGHT 2014 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</span>
<p> </p>
Staff
2015-04-13T07:05:00Z
Can eBay Get Its Groove Back?
Staff
http://www.DrLaura.com/b/Can-eBay-Get-Its-Groove-Back/184566290962587583.html
2015-02-23T13:01:00Z
2015-02-23T13:01:00Z
<p><strong><br /><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /></a></p>
<p>It's hard to believe that eBay, one of the early Internet pioneers that celebrated its 20th anniversary as a public company last year, is viewed by many today as a stodgy, "late stage" company. But so it seems.<span> <br /><br /></span>Earlier this year eBay, under pressure from shareholder activist Carl Icahn (we used to call these people "corporate raiders" back in the 1980s), announced it would spin off its profitable PayPal division into a separate company (with a market value of about $40 billion), and either sell off or take public its eBay Enterprise division which provides technology solutions to e-commerce companies.<span> <br /><br /></span>That will leave what is now called "eBay Marketplace," or what those of us who fell in love with the site in the 1990s called "eBay" - the place where everyday people buy and sell stuff to other everyday people.<span> <br /><br /></span>It is tough to predict what eBay Marketplace's strategy will be once it's back on its own again. For the past several years, its strategy, if it can be called that, has been to copy Amazon.com's business model as much as possible but without making the capital investments Amazon. Such as, establishing highly automated brick and mortar warehouse and distribution centers in most states. It hasn't worked. Many of the Mom-and-Pop sellers who made eBay a household name 20 years ago are now selling mostly on Amazon and other platforms such as etsy.com.<span> <br /><br /></span>It will be interesting to see what CEO Devin Wenig will do with eBay Marketplace when all of the dust settles. It has been suggested, among other options, that he sell the company to Chinese copycat Taobao.com, which currently does not offer an English-language version of its site or distribution within the English-speaking world.<span> <br /><br /></span><strong>Could eBay Marketplace continue to thrive and grow as an independent company, and get its "groove" back? I think it can. Here are some things for Mr. Wenig to think about before the "escape pod" leaves the mother ship.</strong><span> <br /><br /></span></p>
<blockquote><strong>Stop Chasing Amazon. </strong> Amazon has done some things right, but at a huge cost. Building brick and mortar warehouse and distribution centers in all 50 states is costing them a bloody fortune, and its shareholders haven't gotten a penny in dividends in over 10 years. That simply can't last forever - not for a public company. Sooner or later, the backlash will come. <br /><br />Also, Wal-Mart, with its thousands of brick and mortar distribution centers (a/k/a stores) already in place, is taking giant steps to compete head-on with Amazon online through its own website. Fools rush in where angels fear to tread. <span> <br /><br /></span><strong>Get Back to Your Roots as the World's "Flea Market".</strong> The one thing eBay consistently does better than Amazon or Wal-Mart is used, secondhand, antique, collectible and other<em> one of a kind</em> merchandise that is best sold through auctions and competitive bidding. Over the years Amazon has tried to do auctions, but has always failed. <br /><br /><span> </span>By all means eBay should continue to offer fixed price ("Buy It Now!") merchandise, but auctions have always been eBay's core strength (remember it was originally called AuctionWeb). Yes, it's a much smaller market, but eBay can own it with minimal effort, and with zero competition from Amazon or Wal-Mart.<span> <br /><br /></span><strong>Become the World's Leading Online Auctioneer. </strong>One of eBay's most valuable yet underdeveloped assets is its <a href="http://www.ebay.com/rpp/collectibles-live-auctions" target="_blank">Live Auctions website</a>, where buyers can sign up to participate in "live" auctions hosted by small to midsized auction houses around the world. A decade ago, eBay ruled this market. eBay needs to get back into this game big time, and give current market leader <a href="http://www.ha.com/" target="_blank">Heritage Auctions</a> a run for its money. <span> <br /><br /></span><strong>Empower - No, Worship -- Your Sellers.</strong> Until 2008, eBay was two things - a Fortune 500 corporation based in San Jose, California, and a worldwide community of sellers and buyers engaged in peer-to-peer e-commerce. Starting in 2008, eBay effectively destroyed that community by raising its fees through the roof, imposing onerous rules which small and casual sellers couldn't meet, giving preference on its search engine to large-volume sellers, and eliminating its outreach programs for sellers (including its annual "eBay Live!" trade show and "eBay University" seller training courses), among other things.<span> <br /> </span></blockquote>
Now, to be fair, eBay had the best of intentions. There were an awful lot of bad, even downright crazy, sellers on eBay back in the day which hurt its reputation as a safe and reliable marketplace. But trying to impose MBA-type discipline on millions of casual, part-time and inexperienced sellers (a/k/a "herding cats") backfired. <br /><br />Amazon has so far successfully courted these people with its popular "fulfillment by Amazon" (FBA) program. But, unlike eBay, Amazon competes with its third party sellers, exposes them to complicated sales tax liability and offers them little or no support. There has never been, and never will be, a <em>community</em> of Amazon sellers. If eBay offers the right incentives and rebuilds its <em>community</em> initiatives, it can lure most of them back.<br /><br />eBay's true business has always been the empowerment of Mom and Pop retailers, and it has to cultivate them again if it plans to survive. eBay Marketplace has announced plans to lay off thousands of its employees worldwide, many of them in seller support and community functions. That would be a colossal mistake, and needs to be reconsidered. Unlike Amazon, eBay Marketplace relies on third party sellers for 100% of its revenue. It needs these people.<span> <br /><br /></span>Small retail and wholesale businesses cannot survive any more as brick and mortar entities. They have no choice but to sell exclusively online. If Amazon blows them off (as sooner or later I predict they will), where will they go?<br /><br /><br /> <strong style="color: #000000;">Cliff Ennico</strong><span style="color: #000000;"> </span>(<a href="http://www.succeedinginyourbusiness.com/" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <a href="http://www.amazon.com/gp/product/1593374062?ie=UTF8&tag=sucinyoubus-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=1593374062" target="_blank">“Small Business Survival Guide</a>,” “<a href="http://www.amazon.com/gp/product/081447425X?ie=UTF8&tag=sucinyoubus-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=081447425X" target="_blank">The eBay Seller’s Tax and Legal Answer Book</a>” and 15 other books. <span style="color: #000000;">COPYRIGHT 2014 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</span>
<p> </p>
Staff
2015-02-23T13:01:00Z
The Jobless Economy
Staff
http://www.DrLaura.com/b/The-Jobless-Economy/-734393427096879742.html
2015-02-02T19:53:00Z
2015-02-02T19:53:00Z
<p><strong><br /><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /></a></p>
<p>I should really stop reading newspapers. All they do is get you depressed. And angry.<span> <br /><br /></span>When you write a column like this, you read a lot. An awful lot. You have to stay on top of just about every development having anything to do with the world of entrepreneurship and small business.<span> <br /><br /></span>And when you read so much, you sometimes see patterns between stories that most people would think have nothing to do with each other.<span> <br /><br /></span>As an example, here are several recent news stories, each from a different newspaper or news source:<br /><br /></p>
<ul>
<li>Amazon.com plans to lobby Congress and the Federal Aviation Administration (FAA) to allow low-altitude drones to carry packages from Amazon warehouses to their ultimate destinations</li>
<br />
<li>A local school board requested a 5% increase in the annual school budget, explaining by way of apology that almost the entire increase was due to increases in "salaries and benefits for our teachers and administrators, which account for over 90% of our total expenses each year"</li>
<br />
<li>The U.S. military increasingly seeks to use drones to replace ground troops, especially when conducting operations in distant or remote areas that are difficult to access on foot (think Afghanistan)</li>
<br />
<li>A local restaurant has done away with waiters and buspeople. A host (or hostess) guides you to a table equipped with several "tablet type" smartphones. You can then order your meal from the smartphones. Either the host or a kitchen person delivers your meal directly to the table. Your kids can play video games while you wait for your food and when you're done you pay your bill by credit card on the smartphone, with an automatic X% tip to the host or kitchen personnel. You can even split the bill with your dinner companions with 100% mathematical accuracy.</li>
<br />
<li>A startup company works with colleges and universities to develop "online" versions of popular courses -- professors contribute course materials, pre-recorded lectures, assignments and other content, which are made available as a "package" to other universities for a fee. </li>
</ul>
<p><br />Okay, now for the pop quiz: what do all of these news stories have in common? <br /><br />They're all about efforts by both large and small companies to eliminate the human element, otherwise known as "labor" or "people". That's right. Businesses at all levels of the economy are looking to improve productivity by eliminating jobs . . . and people. Permanently. <br /><br />It's no secret that since about 1980 we have been living in the middle of one of the great technological upheavals in human history - one I predict will rival the Industrial Revolution of the 1800s in historical importance. <br /><br />There have actually been several such upheavals in the last couple of centuries, but this one is different. Very different. <br /><br />In the past, when technology changed things, it led to what one famous economist called "creative destruction." A lot of people lost their jobs, but the new technology created lots of other jobs, so there was a net balancing effect. Certain jobs requiring human effort were replaced by other jobs requiring human effort. The railroad eliminated the need for oxcart drivers (if your last name sounds like "Wagner" or "Waggoner" you know what your ancestors did for a living), but created opportunities for them to morph into engineers, stokers, conductors and porters on the new Iron Horse. When the automobile came along, many of those railroad folks became taxi drivers, auto salespeople, highway workers, mechanics, and so forth. <br /><br />But the current technological revolution - a "double whammy" of computerized information technology and mechanical robotics - isn't doing that. It's killing jobs, but it's not replacing them. <br /><br />The digitalization of corporate America - which I've written about frequently in this column - has cost millions of middle-management corporate jobs. But aside from the tens of thousands of jobs it has created at Google, Amazon, Apple, Microsoft and other such companies (extremely high-skilled jobs requiring advanced degrees in mathematics and science), it has not replaced anywhere near the jobs it has destroyed. <br /><br />Millions of Baby Boomers, now facing their 60s and 70s with low retirement funds, will discover that they are permanently obsolete and will have no choice but to retire unprepared. Summer jobs for high school kids - that first critical step on the labor ladder -- will disappear. Young people with only high school or liberal-arts college degrees will find themselves increasingly "shut out" of low-skilled service jobs as machines take them over. Even the military, increasingly automatized, will no longer be a safe harbor for those who can't add value anywhere else. <br /><br />The consequences of this jobless revolution are too many to mention. Workers who don't fit into the new order may well become a permanent underclass, demanding "womb to tomb" welfare benefits that will send tax rates through the roof for the privileged few whose jobs haven't been digitized. <br /><br />Am I the only person in America who finds it ironic that one of the principal architects of this new economic order was a man named Steve Jobs?</p>
<br /> <strong style="color: #000000;">Cliff Ennico</strong><span style="color: #000000;"> </span>(<a href="http://www.succeedinginyourbusiness.com/" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <a href="http://www.amazon.com/gp/product/1593374062?ie=UTF8&tag=sucinyoubus-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=1593374062" target="_blank">“Small Business Survival Guide</a>,” “<a href="http://www.amazon.com/gp/product/081447425X?ie=UTF8&tag=sucinyoubus-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=081447425X" target="_blank">The eBay Seller’s Tax and Legal Answer Book</a>” and 15 other books. <span style="color: #000000;">COPYRIGHT 2014 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.</span>
<p> </p>
Staff
2015-02-02T19:53:00Z
Before You Buy a Website
Staff
http://www.DrLaura.com/b/Before-You-Buy-a-Website/667803244991968979.html
2015-01-19T22:19:00Z
2015-01-19T22:19:00Z
<p><strong><br /><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /></a></p>
<blockquote>
<p><br /><em>"I have been laid off for over a year now and have decided it's time to start a business of my own. <br /><br />I recently came across a business broker that specializes in buying and selling web-based businesses. Basically, they represent companies and individuals who have built traffic on a website. You buy the domain name and the web content and continue growing the business. The seller receives an upfront payment plus royalties from the website's sales for a period of one year. <br /><br />I don't have a lot of Internet marketing experience but feel I can learn as I go once I buy the website. What do you think of this idea?"</em><br /><br /></p>
</blockquote>
Frankly, I'm not wild about it, at least for someone like you. Here are some things to think about before you dip into your retirement funds.<span> <br /><br /><strong>Watch Out for "Link Farms."</strong> There are lots of people, especially overseas, who create websites with great domain names and then populate them with links to third-party content. Lots and lots of links. They do this in order to grow the website's rankings on Google and other search engines. <br /><br /></span>Back in the 1990s, we referred to such websites as "link farms." <br /><br />As when buying any business, you should examine the website's content carefully and ask the seller lots of questions about where the content came from. If there isn't a lot of proprietary content on the website (content the seller has developed itself or licenses from third parties under long-term licenses), I would walk away. Sooner or later, the search engines pick up on link farms and drop their rankings into the lower depths, leaving you with the task of building them up again.<span> <br /><br /></span><strong>Make Sure You're Buying the Entire Package. </strong> There are two pieces to a website: the domain name and the hosting contract. You need both pieces in order to acquire an existing Web-based business, yet many brokers in this field transfer only the domain name. While that's important, a killer domain name won't help you if the Web host, not having been informed of the transfer, shuts down the site months later because it did not receive its annual renewal fee.<span> <br /><br /></span>If the domain name registrar and the Web hosting service are one and the same (for example, Godaddy.com provides both services to Web entrepreneurs), it's fairly simple to transfer both relationships. If, however, as is common, the domain name registrar and the Web host are two different companies, you will have to work with each company to make sure their "puzzle piece" is transferred into your name.<span> <br /><br /></span>What I usually recommend to my clients is that they set up accounts at both the seller's domain name registrar and Web hosting service. It's always easier to get their co-operation if they see they are not losing the account. You can always change them later once the dust settles.<span> <br /><br /></span><strong>Make Sure All Content is Assignable.</strong> If the seller licenses content from other people, you and your lawyer should review the licenses carefully to make sure they don't terminate upon a transfer of the website, or require the owner's consent to the transfer. Many content licenses do (I personally insist on such a provision when I license my content to a website).<span> <br /><br /></span>If a key traffic driver to the website is a particular piece of content, make 100% sure that content doesn't disappear when you take over.<span> <br /><br /></span><strong>Make Sure You Can Grow the Business.</strong> It worries me - a lot - that you don't have Internet marketing experience, particularly in the area search engine optimization (SEO). The seller will agree to hang around for a couple of months to help you transition the business (after all, if they don't and you drive the business down the sewer, they won't get their royalty payments).<span> <br /><br /></span>But once that limited period has passed, you can be sure the seller won't return your e-mails (unless you miss a payment).<span> <br /><br /></span>Before buying this business, I would consider partnering with someone who knows how to maintain the website's performance and search engine ranking. Yes, you will have to share the profits with her, but she will also pick up some of the costs, enabling you (perhaps) to buy additional sites.<span> <br /><br /></span><strong>Make Sure the Seller Can't Compete With You.</strong> A Web-based business operates everywhere, regardless of geography. A noncompete agreement that says the seller will not compete with you "within the State of X" or even "within the United States of America" won't be good enough. You need one that says the seller will not operate a directly competing Web-based business anywhere in the world for at least three years. <br />You will need a lawyer's help here. Because you are locking the seller out of the website business completely, you should be sure to define the business carefully enough that (1) the seller can continue to operate (and sell) other related websites, and (2) a court won't strike down the noncompete as overly broad.<br /><br /><br /><strong style="color: #000000;">Cliff Ennico</strong><span style="color: #000000;"> </span>(<a href="http://www.succeedinginyourbusiness.com/" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <a href="http://www.amazon.com/gp/product/1593374062?ie=UTF8&tag=sucinyoubus-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=1593374062" target="_blank">“Small Business Survival Guide</a>,” “<a href="http://www.amazon.com/gp/product/081447425X?ie=UTF8&tag=sucinyoubus-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=081447425X" target="_blank">The eBay Seller’s Tax and Legal Answer Book</a>” and 15 other books. <span style="color: #000000;">COPYRIGHT 2014 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC.</span><span style="color: #000000;"> Permission granted for use on DrLaura.com.</span>
<p> </p>
Staff
2015-01-19T22:19:00Z
Rekindling the Lost Passions of Youth
Staff
http://www.DrLaura.com/b/Rekindling-the-Lost-Passions-of-Youth/255196361872112723.html
2014-12-15T21:36:00Z
2014-12-15T21:36:00Z
<p><strong><br /><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /></a></p>
<p><br />Sometimes in my entrepreneurship classes and coaching sessions, I run across someone who genuinely has no idea what to do with the rest of his or her life.<span> <br /><br /></span>Usually, but not always, they are corporate executives who have been downsized after 20 or more years of loyal service to their employers. All they have ever known is the job which they have just left. In many cases those jobs are no longer in demand - either because of overseas outsourcing, technological advances, or just plain obsolescence. They have no choice. They have to begin again from scratch and retrain themselves for a job that will keep them solvent into their retirement years.<span> <br /><br /></span>Very often, with such people, I ask the question "what did you want to do, or dream about doing, when you were 18 to 21 years old, your high school and college years?"<span> </span>The question is not frivolous. You can tell a lot about a person by the way in which he or she answers it. <span> <br /><br /></span>There are two things you can say about any 18-year-old person: </p>
<ol>
<li>They are physically (although perhaps not in other ways) mature, adult human beings.</li>
<li>The doors to the world are entirely open to them. They can move in any one of 100 or more different career directions.</li>
</ol>
<p>They have not made any of the life commitments (marriage, a mortgage, student loan debt) that can keep you locked into a certain track. The choices made during the high school and college years - even minor ones - can set a young person on a trajectory that will continue for decades afterwards. <br /><br />I've learned over the years<strong> every person on Earth needs to get something - often just one thing - out of their career in order to be happy. </strong>Often, you have identified that "thing" by the time you are 18-21 years old. What you should do at that stage of life is look for careers that offer you that thing, and ignore career paths that don't. Sadly, most of us don't. We "sell out", go for the money, status, or whatever, and have to make the best of careers that deny us that thing, hopefully leaving us enough leisure time to look for that "thing" in our non-work lives.<span> <br /><br /></span>Show me what someone wanted to be during those critical formative years, and I will tell you a lot about that person. If that person wanted to be an artist or ballet dancer, I know that person values creativity. If that person wanted to be a forest ranger, I know that person values the outdoors. If that person wanted to be a professional football or basketball player, I know that person values physicality and competitiveness. If that person wanted to be a media celebrity or actor/actress, I know that person needs to have an audience. If that person wanted to be a politician, I know that person values power and influence. If that person wanted to be an engineer, I know that person likes tinkering with things. You get the idea.<span> <br /><br /></span>It was therefore with great interest that I picked up my friend Doug Campbell's latest book, "The 16-28 Solution: Unleash the Passions of Your Youth" (Success Coach Publishing, $16.95, available <a href="http://www.amazon.com/16-28-Solution-Unleash-Passions-ReIgnite/dp/1587540320/ref=sr_1_fkmr1_1?ie=UTF8&qid=1419007607&sr=8-1-fkmr1&keywords=he+16-28+Solution%3A++Unleash+the+Passions+of+Your+Youth" target="_blank">here</a>). He looks at a slightly longer time period than I do. Doug looks at the years from age 16 to 28 and argues that "events, emotions, experiences and aptitudes from that critical formative period in our lives are what cause the alarm bells to go off for us whenever our careers reach important points of transition." <br /><br />The book offers five case studies of entrepreneurs who learned to manage difficult career transitions through an in-depth study of the key decisions they made and lessons they learned during that 12-year period. The author's own example provides perhaps the most illuminating parallel between the things we did then and the things we do now:</p>
<ul>
<li>In college Doug majored in Spanish and international relations. Doug is now involved in a microlending program for poor peasant farmers in Latin America.</li>
<li>He tutored Native American children in college. For the past 30 years he has been co-owner of a Sylvan Learning Centers after-school tutoring franchise in Connecticut.</li>
<li>He also coached golf during his college years. Today Doug coaches golf at a high school in Connecticut.</li>
<li>While studying at the University of Virginia's Darden School of Business, he started an Entrepreneurs' Club. For the past 18 years he has coached entrepreneurs and business owners in his own consulting practice. </li>
</ul>
<p>Buy Doug's book, and take his practice exercises. You will be amazed what you will learn, not only about your former self but how the ghost of that former self is still with you. You may no longer be able to play bass in a heavy metal band, but you almost certainly can find a career outlet that will fulfill your need for creativity well into old age. <br /><br /><br /><strong style="color: #000000;">Cliff Ennico</strong><span style="color: #000000;"> </span>(<a href="http://www.succeedinginyourbusiness.com/" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <a href="http://www.amazon.com/gp/product/1593374062?ie=UTF8&tag=sucinyoubus-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=1593374062" target="_blank">“Small Business Survival Guide</a>,” “<a href="http://www.amazon.com/gp/product/081447425X?ie=UTF8&tag=sucinyoubus-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=081447425X" target="_blank">The eBay Seller’s Tax and Legal Answer Book</a>” and 15 other books. <span style="color: #000000;">COPYRIGHT 2014 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC.</span><span style="color: #000000;"> Permission granted for use on DrLaura.com.</span></p>
Staff
2014-12-15T21:36:00Z
Registering Your Nonprofit for Tax--Exempt Status The 'E-Z' Way (Part 2 of 2)
Staff
http://www.DrLaura.com/b/Registering-Your-Nonprofit-for-Tax--Exempt-Status-The-E-Z-Way-Part-2-of-2/-705424935023236091.html
2014-12-01T21:01:00Z
2014-12-01T21:01:00Z
<p><strong><br /><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /></a><br />In July 2014, the IRS adopted new Form 1023-EZ, a simplified application process for nonprofit organizations that wish to obtain tax-exempt status under Section 501(c)(3) of the Internal Revenue Code.<span> <br /><br /></span><strong>Your organization is not eligible to use Form 1023-EZ if:</strong></p>
<ul>
<li>It has more than $250,000 in total assets</li>
<br />
<li>It has gross receipts of more than $50,000 a year, or anticipates that it will exceed $50,000 in gross receipts in either of the next two years</li>
<br />
<li>It is organized as a limited liability company (LLC)</li>
<br />
<li>It is based overseas</li>
<br />
<li>It has another application for 501(c)(3) status pending with the IRS</li>
<br />
<li>It is a church, university, hospital, or one of several other specific types of nonprofit. </li>
</ul>
<ul>
</ul>
<p><br />Form 1023-EZ is essentially a "checklist" - you answer a number of questions and, if you answer them correctly, your organization is granted 501(c)(3) status. Before registering, you sign up for an account at <a href="https://www.pay.gov/public/home" target="_blank">www.pay.gov</a> (type "Form 1023-EZ" in the search box), and pay the $400 fee by credit card or PayPal. There is no lengthy IRS review, no laundry list of follow up questions from IRS agents you have to respond to, no bureaucratic red tape. What's not to like? <br /><br />Well, actually quite a bit. Before you consider going online today and registering your little nonprofit club that meets three times a year in your house over wine and cheese, consider the following. <br /><br />Form 1023-EZ assumes that you are familiar with the many, many restrictions that apply to 501(c)(3) organizations. By saying you are eligible to use Form 1023-EZ, you are swearing under oath to the federal Government that you understand these restrictions and are willing to comply with them. <br /><br /><strong>For example, most 501(c)(3) organizations:</strong></p>
<ul>
<li>Must file an Annual Report to the IRS each year (for some small nonprofits, this will be the "postcard" filing on Form 990-N)</li>
<br />
<li>Cannot engage in political activity of any kind unless it registers as a qualified political organization (a/k/a/ lobbying group)</li>
<br />
<li>Must adopt conflict of interest and compensation policies for its executive directors and other key employees</li>
<br />
<li>Are subject to numerous federal and state rules and regulations restricting their fundraising activities, their dealings with donors, and so forth. </li>
</ul>
<br /> If you register your nonprofit using Form 1023-EZ and then violate any of these rules (even innocently) - well, let's just say I wouldn't want to be in your shoes if the IRS finds out about it. <br /><br />What about that "$50,000 a year in gross receipts" limit on the use of Form 1023-EZ? What if, as a startup organization, you have absolutely no idea what your gross receipts will be in the next two years? What if you register under Form 1023-EZ, apply successfully for a bunch of federal and state government grants, and end up with more than $50,000 a year in 2015 or 2016? <br /><br />The instructions for Form 1023-EZ don't say. IRS Revenue Procedure 2014-40, which authorized Form 1023-EZ (the text of which can be found <a href="http://www.irs.gov/pub/irs-drop/rp-14-40.pdf" target="_blank">here</a>), contains merely a cryptic statement that "a determination letter recognizing exemption may not be relied upon if there is a material change, inconsistent with exemption, in the character, the purpose, or the method of operation of the organization, or a change in the applicable law." <br />
<blockquote><strong>Translation:</strong> If the IRS finds out you've goofed, the IRS may revoke or modify your 501(c)(3) exemption, even retroactively. <br /><br /><strong>The bottom line:</strong> If you are planning to use Form 1023-EZ to register your nonprofit, be sure to meet with a lawyer first and have him or her review your organization's incorporation documents, purpose, goals and management structure to make 100% sure you meet the Form 1023-EZ eligibility requirements and will continue to meet them in the future. You may also want to complete Form 1023-EZ electronically in the attorney's office with him or her looking over your shoulder, to make sure you don't make any mistakes. </blockquote>
Many charity-minded attorneys will waive their hourly charges and quote you a flat fee for these services if you ask them nicely (for comparison's sake, I currently offer such a service to my nonprofit clients for a $750 flat fee plus the $400 IRS filing fee). <br /><br /><strong>If you are at all unsure about your organization's eligibility for Form 1023-EZ, DO NOT FILE IT. </strong>To be sure, filing the regular IRS Form 1023 is a major pain in the you-know-what. You have to pull together lots of information about your organization, prepare financial projections, provide biographies of your executive director and key employees, and make sure your organizational documents are letter perfect. You then have to wait up to 21 months to have your application approved. <br />
<p>By going through this detailed application process, however, you can be sure the IRS is looking at your organization very closely to make sure it complies with all of the 501(c)(3) rules and restrictions, making it less likely they will revoke it later on without a really good reason.<br /><br /><br /><strong style="color: #000000;">Cliff Ennico</strong><span style="color: #000000;"> (<a href="http://legalcareer.com/" target="_blank">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="/www.creators.com" target="_blank">www.creators.com</a>. COPYRIGHT 2014 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC.</span><span style="color: #000000;"> Permission granted for use on DrLaura.com.</span></p>
Staff
2014-12-01T21:01:00Z
Registering Your Nonprofit for Tax--Exempt Status The 'E-Z' Way (Part 1 of 2)
Staff
http://www.DrLaura.com/b/Registering-Your-Nonprofit-for-Tax--Exempt-Status-The-E-Z-Way-Part-1-of-2/59525500350910868.html
2014-11-17T23:33:00Z
2014-11-17T23:33:00Z
<p><strong><br /><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com<br /></a><br />Getting a nonprofit organization off the ground has always involved three steps:</p>
<ul>
<li>Forming a "nonstock" corporation or limited liability company (LLC) under your state's business organization laws</li>
<li>Registering the corporation or LLC for tax-exempt status with the Internal Revenue Service under Section 501(c)(3) of the federal tax code</li>
<li>Once federal tax-exempt status has been obtained, registering the corporation or LLC for tax-exempt status under your state's tax laws. </li>
</ul>
<p>The second step was, up until now, by far the most time-consuming and labor-intensive of the three steps. First, you had to fill out IRS Form 1023, a monster of an application form (for the text, go to <a href="http://www.irs.gov/" target="_blank">www.irs.gov</a> and type "Form 1023" in their search box) that required you to project your financial statements, donations and other information for the first two to three years of your operations, attach all sorts of corporate documents and resolutions as "exhibits", and describe all of your intended programs in exquisite detail. <br /><br />Completing the form, and pulling together the information required by the form, took forever and a day. But then it got worse. Once you filed Form 1023 with the IRS, you had to wait upwards of 18 to 21 months to get IRS approval. If you made even one mistake on the form, the IRS kicked it back to you and you started the process all over again. Oh, and did I tell you about the $400 filing fee ($750 if you wanted "expedited service," which required you to fill out yet another form)? <br /><br />In July of this year, things got a little easier for nonprofit startups, with the IRS' adoption of new Form 1023-EZ (go to <a href="http://www.irs.gov/" target="_blank">www.irs.gov</a> and type "Form 1023-EZ" in their search box), a streamlined application form that can be filed electronically. If you file it correctly, without a single mistake, and pay the $400 filing fee by credit card (sadly, that hasn't gone away), you could - possibly - get IRS approval almost instantaneously. <br /><br />What's even better, Form 1023-EZ is truly streamlined. It is basically a questionnaire where you provide basic information about your nonprofit's organizational structure (corporation or LLC), management personnel and charitable purpose. Most of the questions are "yes/no" and it's fairly easy to figure out what the correct answers should be. I timed myself filling out the form for one of my nonprofit clients and it took all of 15 minutes (of course, I do this sorts of work for a living so give yourself at least a half-hour). <br /><br />Should your organization file Form 1023-EZ today, so you can start pitching rich people for tax-deductible donations? Well, not so fast. As with all things the Government gives you, there are a number of conditions, reservations and "wait a minutes". <br /><br />First of all,<strong> not all nonprofit startups qualify to use Form 1023-EZ</strong>. <strong>The IRS requires you to fill out an "eligibility checklist"</strong> to use the form before you can actually fill it out online. And they have made the checklist very, very hard to find - searching for "Form1023-EZ eligibility checklist" on the IRS website will not get you there. To get to the checklist, you have to search for "Form 1023-EZ" on the IRS website, then download the "instructions" for Form 1023-EZ (not the form itself), then scroll down the instructions (on the right hand column) and click on the link for "Form EZ Eligibility Checklist". <br /><br /><br /><strong>There are 26 questions on the checklist, the most important of which are:</strong></p>
<ul>
<li>Do you project that your organization's annual gross receipts will exceed $50,000 in any of the next three years?</li>
<li>Have your annual gross receipts exceeded $50,000 in any of the past three years?</li>
<li>Do you have total assets in excess of $250,000?</li>
<li>Are you a LLC?</li>
<li>Are you a successor to a for-profit entity?</li>
<li>Are you a church or a convention or association of churches as defined by the Internal Revenue Code?</li>
<li>Are you a school, college, or university as defined by the Internal Revenue Code?</li>
<li>Are you a hospital, hospital organization, health maintenance organization (HMO) or medical research organization as defined by the Internal Revenue Code? </li>
<li>Will your organization provide assistance to individuals through credit counseling activities or other consumer credit areas?</li>
<li>Do you or will you invest 5% or more of your total assets in securities or funds that are not publicly traded?</li>
<li>Do you participate in partnerships in which you share profits and losses with partners other than Section 501(c)(3) organizations?</li>
<li>Are you a private operating foundation?</li>
<li>Do you maintain or intend to maintain one or more donor advised funds? </li>
</ul>
<p><br />If you answer "yes" to ANY of the 26 questions, you cannot use Form 1023-EZ, although you still may be able to obtain tax-exempt status by filing the full Form 1023. If you don't understand any of the questions, or don't know the answer, STOP - you will need help from an attorney or tax advisor. <br /><br />More next week . . . </p>
<p><br /><strong style="color: #000000;">Cliff Ennico</strong><span style="color: #000000;"> (<a href="http://legalcareer.com/" target="_blank">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="/www.creators.com" target="_blank">www.creators.com</a>. COPYRIGHT 2014 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC.</span><span style="color: #000000;"> Permission granted for use on DrLaura.com.</span></p>
Staff
2014-11-17T23:33:00Z
The Future of American Business... in Four Little Words
Staff
http://www.DrLaura.com/b/The-Future-of-American-Business...-in-Four-Little-Words/-719424817153504907.html
2014-10-20T19:59:00Z
2014-10-20T19:59:00Z
<p><strong><br /><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com</a><br /><br /><br />In speaking to business owners and "people in career transitions" nationwide, I am often called upon to speculate about the future. <br /><br />For example, I am frequently asked: </p>
<ul>
<li>What businesses should I be thinking of starting now? </li>
<li>What businesses will still be around in ten years' time? </li>
<li>Where will tomorrow's jobs be? </li>
<li>Will there BE a future for small business in the next 20 years? </li>
</ul>
<p><br />I have given the matter quite a bit of thought (being a professional speaker means you have a lot of downtime in trains, planes and automobiles), and have come up with a few visions of what the business world is going to look like in a decade or two, assuming of course that present trends continue. <br /><br />While not a complete picture of the business world circa 2030, I think a lot of future business trends can be summarized in four simple, commonplace, household words. <br /><br />The words are: "digital", "global", "virtual", and "24/7" (okay, maybe the last one is two words). Now, to make sense of them. <br /><br /><strong>The future will be DIGITAL.</strong> Since about 1980, our world has been increasingly computerized and digitized. Entire industries that used to live in the physical world now live almost exclusively online. Do you see any Mom and Pop retail stores on your local commercial strip? I'll bet you don't. <br /><br />When looking for small business opportunities, don't look at anything "brick and mortar." Rents in most commercial districts are skyrocketing, and only larger businesses that can cover their monthly "nuts" with substantial, predictable revenue (think "big box" retailers, franchises, and banks) will be able to afford those rents. <br /><br />If you are thinking about a basic retail or service business, it must live on the Web, because that's where costs are affordable. Put together a Website that is "e-commerce enabled" (that means people can buy stuff directly from your website without having to call you), together with a Facebook page that is linked to your Website, and market the Dickens out of it. <br /><br /><strong>The future will be GLOBAL. </strong> The Web has erased local, state and national boundaries, probably for good. Much of our legal and tax system is based on these boundaries, which is why our legal and tax system increasingly makes no sense. <br /><br />Take sales taxes, for example. These taxes, which have been around for the last century or so, are based on the proposition that the seller and buyer in any sales transaction will always be in the same physical location. <br /><br />But that doesn't happen on the Web. The vast majority of online sales are interstate or international in nature, and sales taxes are not charged on those transactions. Just last week I bought something online from a vendor in Russia. As a kid growing up in the Cold War 1960s, if I purchased something from a vendor in Russia I would have had the FBI in my living room within 24 hours. <br /><br />Today people are finding they have more in common with people in Zimbabwe than they do with people who live down the street. Any business that plans to survive in the future must cast its marketing net globally. <br /><br /><strong>The future will be VIRTUAL.</strong> It used to be that companies were organized into pyramids, with hierarchical steps that employees would climb like a ladder, trying to get as close as they could to the top before they are downsized or forced to retire. <br /><br />In the future, company structures will be flat, and there will be few if any living and breathing employees. Work will get done by a system of "virtual project teams" that will assemble for particular projects, then disassemble when the project is done, then reconfigure for other projects involving different companies. <br /><br />Picture a "lava lamp" in your mind (if you don't know what this is, you can see a video demonstration online at <a href="http://www.lavalamp.com/c/7/classic-lava-lamp" target="_blank">http://www.lavalamp.com/c/7/classic-lava-lamp</a>). Notice the way the different fluids merge into each other, then separate, then merge again in different configurations. That is how the world will be working in 20 years. <br /><br />There will still be companies, of course, but they will be little more than jigsaw pieces that fit into various project teams. It will be the teams that matter, and determine your career path. <br /><br />Groovy, man. <br /><br /><strong>The future will be 24/7.</strong> The barriers between work, play and study will completely disappear in 20 years. There will no longer be weekends, holidays and vacations. Every day will be a work day, every day will be a play day, every day will be a study day. <br /><br />Last Sunday I worked four hours on client projects, but on Wednesday I took two hours off to shop at a local bookstore and pick up my dry cleaning, when both stores were empty. <br /><br />Are these four "megatrends" good or bad for the human race? I don't know. But I think they are inevitable, and as with any organic evolution, you either adapt or die.</p>
<p><br /><br /><strong style="color: #000000;">Cliff Ennico</strong><span style="color: #000000;"> (</span><a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a><span style="color: #000000;">), a leading expert on small business law and taxes, is the author of "<a href="http://www.amazon.com/gp/product/1593374062?ie=UTF8&tag=sucinyoubus-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=1593374062" target="_blank">Small Business Survival Guide</a>", "<a href="http://www.amazon.com/gp/product/081447425X?ie=UTF8&tag=sucinyoubus-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=081447425X" target="_blank">The eBay Seller's Tax and Legal Answer Book</a>" and 15 other books. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state.</span><span style="color: #000000;"> Permission granted for use on DrLaura.com.</span></p>
Staff
2014-10-20T19:59:00Z
Who Owns Your Digital Assets When You Die?
Staff
http://www.DrLaura.com/b/Who-Owns-Your-Digital-Assets-When-You-Die/-838465224822966755.html
2014-10-13T19:05:00Z
2014-10-13T19:05:00Z
<p><strong><br /><br />By Cliff Ennico<br /></strong><a href="http://succeedinginyourbusiness.com/" target="_blank">SucceedingInYourBusiness.com</a><br /><br />In an increasingly digital world, more and more assets are being converted from something you can touch, feel and hoard into a combination of ones and zeroes on a computer server somewhere.<span> <br /><br /></span>Where do they all go when the owner dies?<span> <br /><br /></span>A friend of mine told me recently that if he were to "kick the bucket" right now, his assets would include:</p>
<ul>
<li>an account on Paypal.com with a balance of $10,000</li>
<li>approximately $2,000 in Bitcoin®</li>
<li>500 copyrighted photos on Instagram®</li>
<li>digital invoices to clients for about $30,000 </li>
<li>"points" earned on a number of online shopping sites</li>
<li>Credits on several online video games entitling him to purchase digital goods to upgrade his online avatar (if your character has the Magic Sword of Shambala, hey, that's worth something to somebody). </li>
</ul>
<p><br />In my own case, virtually all of my client files over the last decade are in electronic form, consisting of thousands of e-mail exchanges on Gmail and other e-mail accounts and tens of thousands of Microsoft Word documents. <br /><br />Who would have access to those if I were to die tomorrow? To whom would they be transferred, and how? Who decides whether the account can be terminated or the content erased? Would my Internet hosting service co-operate and allow my account to be transferred? <br /><br />Up to now, the answer to these questions lay in the fine print of the "terms and services" document you signed with your Internet hosting service, Paypal, or website when you first opened your account. If that document did not contain specific language dealing with the transfer of your account (and its contents) upon your death, 19 states have adopted laws allowing your executor (the person responsible for handling and disposing of your assets upon death) to access your digital accounts upon the presentation of a death certificate to the website or hosting service where the account is maintained - for an excellent state-by-state summary of these laws, <a href="https://www.everplans.com/tools-and-resources/state-by-state-digital-estate-planning-laws" target="_blank">click here</a>. <br /><br /><strong>In July 2014, the National Conference of Commissioners on Uniform State Laws, a highly influential nonprofit organization of legal professionals, published the "Uniform Fiduciary Access to Digital Assets Act" ("USADAA" for short). So far only Delaware has adopted the USADAA, but it is being introduced in many state legislatures this fall and is likely to be adopted by most states within the next year. </strong> <br /><br />The USADAA does not determine how your digital assets will be disposed of when you die - that is left to traditional trusts and estates law. So, for example, if you die intestate (without a will), your digital assets will be distributed to your heirs under your state's intestacy law, the same as your physical assets. <br /><br />What the USADAA does do is enable your fiduciaries to access your digital assets upon your death, so that they can dispose of them as the law requires or as you designate in a will, living trust, or similar document. In addition to executors, "fiduciaries" include:</p>
<ul>
<li>Conservators appointed by a court to handle your affairs if you are mentally incapable of doing so.</li>
<li>Agents under a general power of attorney (although there are some restrictions here - under USADAA an agent cannot view the content of your e-mails without a specific instruction in the power of attorney to do so). </li>
</ul>
<p><strong>The law defines "digital asset" as "a record that is electronic," but does not include "an underlying asset or liability unless the asset or liability is itself a record that is electronic."</strong> So, for example, under USADAA your executor could access your PayPal account upon your death, but would not have the ability to withdraw the $10,000 cash balance in your account. The USADAA also applies to "electronic communications" such as e-mail accounts and the "catalogues" (records) of your e-mail or online activity.<br /><br />The USADAA specifically provides that your fiduciary can access all of your digital assets, e-mall accounts, social media pages (even private ones), and all other online presences. The law also voids any terms in a website's "Terms of Service" or "User Agreement" that limit a fiduciary's access to your online account, you are allowed to make a separate agreement with the website that is outside of the boilerplate "Terms of Service" as long as you do so after your state enacts the USADAA. <br /><br />The USADAA does not require you to prepare a list of all of your online accounts, although it's a good idea to do so (along with username and password information). <br /><br />As states adopt the USADAA, it will be more important for you to specify in your will how you wish your digital assets to be treated when you die, and limit other people's access to online content that may be - er -- controversial. Try not to be too specific, however - an instruction in your will that your fiduciary "terminate my account at incrediblysexyvixens. com and erase all content therein" may be more problematic in the long run than simply not disclosing the existence of that account. <br /><br /><br /><strong style="color: #000000;">Cliff Ennico</strong><span style="color: #000000;"> (</span><a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a><span style="color: #000000;">), a leading expert on small business law and taxes, is the author of "<a href="http://www.amazon.com/gp/product/1593374062?ie=UTF8&tag=sucinyoubus-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=1593374062" target="_blank">Small Business Survival Guide</a>", "<a href="http://www.amazon.com/gp/product/081447425X?ie=UTF8&tag=sucinyoubus-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=081447425X" target="_blank">The eBay Seller's Tax and Legal Answer Book</a>" and 15 other books. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state.</span><span style="color: #000000;"> Permission granted for use on DrLaura.com.</span></p>
Staff
2014-10-13T19:05:00Z
Six Excellent Reasons Not to Form Your Company Online
Staff
http://www.DrLaura.com/b/Six-Excellent-Reasons-Not-to-Form-Your-Company-Online/-632493007993619956.html
2014-07-28T22:05:00Z
2014-07-28T22:05:00Z
<p><strong><br /></strong></p>
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com" target="_blank">SucceedingInYourBusiness.com<br /><br /></a></p>
<p>"Some friends and I want to start a business, and we're thinking of forming a limited liability company (LLC). We are impressed with some of the websites such as legalzoom.com and rocketlawyer.com that set up corporations and LLCs online. Their cost is only a fraction of what an attorney or accountant would charge to set us up. I'm worried, though, that these websites are offering too good a deal. What are we not getting by using websites like these that we would get using a lawyer or accountant?" <br /><br />There are lots of websites that offer to form corporations and LLCs for you. They are getting better, but none are perfect. <br /><br /><br /><strong>Here are some of the things you DON'T get when you use these sites. </strong> <br /><br /><br /><strong>They Don't Advise You (Because They Can't)</strong>. There is nothing legally wrong with a website offering legal forms for sale along with instructions for "filling in the blanks." Companies like Blumberg Excelsior (<a href="http://www.blumberg.com" target="_blank">www.blumberg.com</a>) have been doing this for over 100 years. <br /><br />But what if you get stuck filling out the form, or have a question that is not answered in the printed instructions? Can the website give you legal advice? Ay, there's the rub. A number of state bar associations have taken the position that a website offering legal advice by non-attorneys or out-of-state attorneys is engaged in the "unauthorized practice of law" and must cease doing so. Some of these rulings have been challenged in court, but there has been no clear ruling anywhere I'm aware of on this issue. <br /><br /><br /><strong>"One Size Fits All" Documents Don't Work</strong>. While there is a fairly high degree of uniformity in State Corporation and LLC laws, there are significant differences as you go from state to state. Yet most online services use exactly the same process in all states. <br /><br />Most states require only the filing of a single piece of paper (called "Articles of Incorporation" or "Certificate of Incorporation") to form a corporation. Yet in Connecticut, where I live, it takes two pieces of paper - a Certificate of Incorporation, followed by an "Organization and First Report" spelling out the corporation's directors and officers. If you fail to file both documents (and no online service I'm aware of files the "Organization and First Report"), you have not completed the incorporation process and your corporation won't protect your personal assets if you are sued. <br /><br /><br /><strong>They Leave Things Out</strong>. Most online services use only the generic, "statutory" form when filing LLC and corporate documents. Yet virtually every LLC or corporation statute allows you to include "optional" provisions in these documents. These provisions can be quite valuable, and lawyers always include them. <br /><br />For example, in many states you can add language in a Certificate of Incorporation limiting the liability of your outside (non-management) directors if the corporation is sued. Yet no online service I'm aware of will include that "optional" provision in your Certificate unless you tell them to do so. <br /><br /><br /><strong>Their Operating Agreement Forms Don't Do the Job</strong>. Online services use only barebones, generic Operating Agreements when forming LLCs. Often they use the exact same form in all 50 states with only minor variations. <br /><br />If you have two or more partners (called "members") in your LLC, chances are you need much more in your Operating Agreement, such as:</p>
<ul>
<li>"Management provisions" as to how you will run the company</li>
<li>"Buy-sell provisions" allowing you to buy out a partner who leaves the company</li>
<li>"Supermajority voting provisions" protecting minority owners from abuse by the majority owners </li>
</ul>
<p><br />You will need to discuss and negotiate these provisions with your partners, and online services can't help you with that. <br /><br /><strong>They Form Your LLC in the Wrong State</strong>. Many online services tout the benefits of forming a corporation or LLC in Delaware and other "low tax" states. What they don't tell you is that if your corporation or LLC is physically located in another state, you must register your Delaware corporation or LLC as a "foreign" entity in that state. That is a legal requirement, and there are serious penalties for failing to register, yet most online services treat this as an "add-on" service, misleading customers into thinking it's not necessary. <br /><br /><br /><strong>They Don't Register Your LLC for State/Local Taxes</strong>. Once your corporation or LLC has been formed, it often must register separately with the state tax authority and other state and local government agencies. Some online services will tell you these registrations must be done, but no service I'm aware of will do them for you. What good is an online service that doesn't complete all the necessary steps? <br /><br />If you know nothing about corporations and LLCs, it's always best to have a lawyer or accountant do it for you. Yes, you will pay them more than you will an online service. But professionals do it right, and if they don't you can sue them for malpractice. <br /><br />Just try suing Legalzoom.com if they get something wrong!</p>
<p><strong>Cliff Ennico</strong> (<a href="http://www.creators.com/" target="_blank">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/" target="_blank">www.creators.com</a>. COPYRIGHT 2014 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.<em><em> <br /></em></em></p>
Staff
2014-07-28T22:05:00Z
Will 'Crowdfunding' Change the Capital Raising Process Forever? (Part 2 of 2)
Staff
http://www.DrLaura.com/b/Will-Crowdfunding-Change-the-Capital-Raising-Process-Forever--Part-2-of-2/902603616467540987.html
2014-04-21T19:17:00Z
2014-04-21T19:17:00Z
<p><strong><br /></strong></p>
<p style="text-align: left;"><strong>By Cliff Ennico<br /></strong><a href="http://www.creators.com/" target="_blank">Creators.com</a><br /><br /></p>
In last week's column, I talked about the strengths and weaknesses of the SEC's proposed crowdfunding regulations, in an attempt to figure out if "equity crowdfunding" (<strong>raising capital for your startup or small business using crowdfunding techniques</strong>) will revolutionize the capital raising process in the United States.<br /><br />The short answer, sadly, is "no". To ensure that investors who are neither wealthy nor sophisticated don't get <em>fleeced</em> by bogus startups, the SEC has built in a large number of safeguards which I predict will make equity crowdfunding both expensive and time-consuming, especially for "concept" startups (<strong>those with merely an idea for a business, product or service that are looking for funds to build a prototype or test their business plan</strong>).<br /><br /><strong>Lest my readers despair, however, there is one aspect of the proposed equity crowdfunding scheme that is truly groundbreaking, and which has the potential to revolutionize at least one corner of the securities industry.</strong><br /><br />That aspect is Title II of the federal Jumpstart Our Business Startups (JOBS) Act, relating to offerings made by general solicitation and advertising to "accredited investors" only, which I predict will totally transform the "angel investor" industry.<br /><br />Traditionally, angel investors - wealthy "millionaire next door" type individuals who provide capital and advice to startup and very early stage companies - are an isolated bunch of loners. Most often their investments are purely local, to companies based in their home town or county. The most social of them belong to an "angel club" consisting of not more than 10 people who meet once a month at the local country club.<br /> <br />They are often ignorant of investment opportunities in other states (or countries), or industries in which they lack personal experience either as an investor or as an executive in corporate America.<br /> <br />Over the last 100 years, venture capitalists and others (including my colleagues and I when we launched the "MoneyHunt" television show on PBS almost 20 years ago) have dreamed of creating a "portal" to help isolated angel investors around the country identify the most promising startups, no matter where they were geographically based or what industry they were in.<br /> <br /><strong> The proposed regulations would allow websites such as AngelList (http://angel.co) to set up "angel portals" dedicated to accredited investor only offerings. </strong>These websites would include startups to reach out to investors via general solicitation and general advertising methods, thereby making angel investment possible for scores of startups - including concept companies" -- that are currently off investors' radar screens. <br /> <br /><strong>Even better, Title II crowdfunding will enable these websites to build up a database of qualified accredited investor angel investors that they can share to find the perfect <em>fit</em> for a particular startup or entrepreneur.</strong><br /> <br />The only sticking point in Title II crowdfunding is that if a startup company allows even one non-accredited investor into the fold, it blows the entire offering and requires the startup to register a "public offering" with the SEC. Not a good result.<br /> <br />So how do startup company founders, with lots of friends and family but few contacts with "one percent" investors, get up and running under the proposed SEC regulations?<br /> <br />One thought that occurred to me (and, to be fair, other commentators on the proposed SEC regulations as well) is that an early-stage company might want to launch two offerings simultaneously:<br /><br />
<blockquote>
<ul>
<li>a Title II crowdfunded offering of preferred shares to accredited investors for most of the money they need to grow.</li>
</ul>
<ul>
<li>an "equity crowdfunded" offering of common shares for non-accredited investors such as friends, family, customers, and other people sourced through the Web who do not qualify as accredited investors. </li>
</ul>
</blockquote>
<br />I call this an "Upstairs/Downstairs" offering, with apologies to a popular BBC television program that aired on Public Television in the United States in the 1970s.<br /> <br /><strong>Looking at the longer-term picture, crowdfunded investments have a potential to become the "norm" for private equity investment in early stage companies. </strong> The people who promoted equity crowdfunding were absolutely right in pointing out to Congress and the SEC that investors today are a lot more "savvy," and have access to lots more information (literally) at their fingertips, than investors in early 20th century America could even imagine, and therefore don't need the extensive protections required by laws that date back to the 1930s. <br /> <br />It's just that I think it will take longer to get there than the current wisdom says it will. Change, especially in an industry so tradition bound and cautious as the securities industry, only happens slowly and incrementally. It will take longer than a few years for the industry, and their regulators, to accept the hypothesis that the <em>crowd</em> knows more collectively than the individuals within it.<br /> <br />Then again, I could be wrong. We'll see.<strong><br /><br /><br /><br />Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series<em> 'Money Hunt'</em>. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit their Web page at <a href="http://www.creators.com">www.creators.com</a>. COPYRIGHT 2014 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.<em><em> <br /></em></em>
<p> </p>
<div id="_mcePaste" class="mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow: hidden;"> In last week's column, I talked about the strengths and weaknesses of the SEC's proposed crowdfunding regulations, in an attempt to figure out if "equity crowdfunding" (raising capital for your startup or small business using crowdfunding techniques) will revolutionize the capital raising process in the United States.<br /> The short answer, sadly, is "no". To ensure that investors who are neither wealthy nor sophisticated don't get "fleeced" by bogus startups, the SEC has built in a large number of safeguards which I predict will make equity crowdfunding both expensive and time-consuming, especially for "concept" startups (those with merely an idea for a business, product or service that are looking for funds to build a prototype or test their business plan).<br /> Lest my readers despair, however, there is one aspect of the proposed equity crowdfunding scheme that is truly groundbreaking, and which has the potential to revolutionize at least one corner of the securities industry.<br /> That aspect is Title II of the federal Jumpstart Our Business Startups (JOBS) Act, relating to offerings made by general solicitation and advertising to "accredited investors" only, which I predict will totally transform the "angel investor" industry.<br /> Traditionally, "angel investors" - wealthy "millionaire next door" type individuals who provide capital and advice to startup and very early stage companies - are an isolated bunch of loners. Most often their investments are purely local, to companies based in their home town or county. The most social of them belong to an "angel club" consisting of not more than 10 people who meet once a month at the local country club.<br /> They are often ignorant of investment opportunities in other states (or countries), or industries in which they lack personal experience either as an investor or as an executive in corporate America.<br /> Over the last 100 years, venture capitalists and others (including my colleagues and I when we launched the "MoneyHunt" television show on PBS almost 20 years ago) have dreamed of creating a "portal" to help isolated angel investors around the country identify the most promising startups, no matter where they were geographically based or what industry they were in.<br /> The proposed regulations would allow websites such as AngelList (http://angel.co) to set up "angel portals" dedicated to "accredited investor only" offerings. These websites would include startups to reach out to investors via general solicitation and general advertising methods, thereby making angel investment possible for scores of startups - including "concept" companies" -- that are currently off investors' radar screens. <br /> Even better, Title II crowdfunding will enable these websites to build up a database of qualified "accredited investor" angel investors that they can share to find the perfect "fit" for a particular startup or entrepreneur.<br /> The only sticking point in Title II crowdfunding is that if a startup company allows even one non-accredited investor into the fold, it blows the entire offering and requires the startup to register a "public offering" with the SEC. Not a good result.<br /> So how do startup company founders, with lots of friends and family but few contacts with "one percent" investors, get up and running under the proposed SEC regulations?<br /> One thought that occurred to me (and, to be fair, other commentators on the proposed SEC regulations as well) is that an early-stage company might want to launch two offerings simultaneously:<br />* a Title II crowdfunded offering of preferred shares to "accredited investors" for most of the money they need to grow; and<br />* an "equity crowdfunded" offering of common shares for non-accredited investors such as friends, family, customers, and other people sourced through the Web who do not qualify as "accredited investors". <br /> I call this an "Upstairs/Downstairs" offering, with apologies to a popular BBC television program that aired on Public Television in the United States in the 1970s.<br /> Looking at the longer-term picture, crowdfunded investments have a potential to become the "norm" for private equity investment in early stage companies. The people who promoted equity crowdfunding were absolutely right in pointing out to Congress and the SEC that investors today are a lot more "savvy," and have access to lots more information (literally) at their fingertips, than investors in early 20th century America could even imagine, and therefore don't need the extensive protections required by laws that date back to the 1930s. <br /> It's just that I think it will take longer to get there than the current wisdom says it will. Change, especially in an industry so tradition bound and cautious as the securities industry, only happens slowly and incrementally. It will take longer than a few years for the industry, and their regulators, to accept the hypothesis that the "crowd" knows more collectively than the individuals within it.<br /> Then again, I could be wrong. We'll see.</div>
Staff
2014-04-21T19:17:00Z
Will 'Crowdfunding' Change the Capital Raising Process Forever? (Part 1 of 2)
Staff
http://www.DrLaura.com/b/Will-Crowdfunding-Change-the-Capital-Raising-Process-Forever--Part-1-of-2/-216565549567555082.html
2014-04-14T19:06:00Z
2014-04-14T19:06:00Z
<p><strong><br /></strong></p>
<p style="text-align: left;"><strong>By Cliff Ennico<br /></strong><a href="http://www.creators.com/" target="_blank">Creators.com</a><br /><br />As I'm writing this, the U.S. Securities and Exchange Commission ("SEC") is preparing to hand down final regulations allowing startup companies to use "crowdfunding" techniques to raise capital, for the first time in U.S. history.</p>
<p style="text-align: left;">For those who aren't familiar with the concept, <strong>crowdfunding means soliciting money from people who are part of your social network online, whether you know them or not</strong>. Crowdfunding websites such as Kickstarter.com and IndieGoGo.com allow people to tap their social networks to raise money for projects, such as a new book or motion picture, a prototype invention, or a medical procedure that isn't covered by health insurance.</p>
<p style="text-align: left;">For over 80 years, SEC regulations have prohibited companies from using "general solicitation" and "general advertising" (such as newspaper or magazine ads) to raise money before launching an initial public offering (IPO). Within days, that prohibition will become history.</p>
<p style="text-align: left;">(<em>Full disclosure: I have a personal stake in what the SEC does. My new book, "The Crowdfunding Handbook", due out this summer, describes the law changes and how startup companies can best take advantage of them</em>.) </p>
<p style="text-align: left;">But will crowdfunding really become <em>the</em> way for early stage companies to raise money? Here is my totally biased (but educated) best guess.</p>
<p style="text-align: left;"><em><strong>First, the Bad News</strong></em> </p>
<blockquote>
<p style="text-align: left;">While I am generally a fan of the crowdfunding movement, I don't think the new regulations will have as revolutionary an impact on the capital markets as its promoters suggest.</p>
<p style="text-align: left;">First of all, the cost of launching a crowdfunded offering is likely to be very high, and perhaps prohibitive for startups and other companies that haven't yet proven their concept. The <strong>new regulations require companies to prepare a detailed Offering Statement describing their business plan, the nature of the securities they are offering, and the risks of investing in the company, and post the Offering Statement on a "funding portal" website that is registered with the SEC</strong> (at the present time we do not know if Kickstarter.com or IndieGoGo.com plan to register as portals - a number of smaller startups, such as EquityNet.com and SeedInvest.com, have indicated their intent to do so).</p>
<p style="text-align: left;">Because of the high malpractice risk associated with private offerings of securities, lawyers and accountants are likely to charge substantial fees to assist in preparing companies' Offering Documents. The new regulations also require companies seeking more than $500,000 a year through crowdfunding to obtain "audited" financial statements, the cost of which will likely be prohibitive for companies that haven't already been through one round of venture financing.</p>
<p style="text-align: left;">Second of all, the <strong>new regulations impose significant liability on the funding portal websites that facilitate crowdfunded offerings</strong>. If the website posts an Offering Statement that contains material errors, or certifies an investor as "accredited" (wealthy enough to afford to lose their entire investment) who doesn't meet the SEC's definition of accredited, it can be sued by all injured parties and lose its SEC registration. </p>
<p style="text-align: left;">To avoid liability funding portals will need to hire lots of employees to scrutinize individual offerings. Even if the portals outsource those employees to India or elsewhere in the developing world, the costs will be significant, and the portals will have to charge high fees to cover those costs - Fees that most early stage companies cannot afford.</p>
<p style="text-align: left;">Finally, even if a crowdfunded offering is successful, the time and effort involved in managing a <em>crowd</em> of dozens or hundreds of individual investors will be beyond the abilities of most startups.</p>
</blockquote>
<p style="text-align: left;"><em><strong>Now, the Good News</strong></em></p>
<blockquote>
<p style="text-align: left;">Before my readers get out their pitchforks and torches and start "doxing" me as a heretic, let me say that there is one aspect of the new crowdfunding regulations that is truly groundbreaking, and which has the potential to revolutionize at least one corner of the securities industry.</p>
<p style="text-align: left;">In addition to allowing crowdfunded offerings of securities, the <strong>new regulations allow companies to use general solicitation and general advertising to raise capital</strong>, as long as they allow only accredited investors to purchase their shares.</p>
<p style="text-align: left;">It has always been extremely difficult for startup companies to find the right "angel investors". Traditionally, angel investors - wealthy <em>millionaire next door</em> type individuals who provide capital, networking contacts and advice to startups - are an unorganized, isolated bunch who make investments through personal connections in early stage companies based in their home state or region. The most social of them belong to an "angel forum" consisting of 10 to 15 people who meet once a month at a local restaurant or country club.</p>
<p style="text-align: left;">They are often ignorant of investment opportunities in other states (or countries), or in industries other than the one they know thoroughly from their years of working in corporate America.</p>
<p style="text-align: left;"><strong>By giving angel investors the ability to register as accredited investors on websites such as AngelList (http://angel.co), the new regulations will make it much easier for startups to find angel investors, and for angel investors to find promising startups, free of geographic or other limits.</strong></p>
</blockquote>
<p style="text-align: left;">More next week . . .<br /><br /></p>
<strong><br /><br />Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series<em> 'Money Hunt'</em>. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit their Web page at <a href="http://www.creators.com">www.creators.com</a>. COPYRIGHT 2014 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.<em><em> <br /></em></em>
<p> </p>
Staff
2014-04-14T19:06:00Z
Twelve Marketing Tools Most Small Businesses Don't Get Right (Part 2 of 2)
Staff
http://www.DrLaura.com/b/Twelve-Marketing-Tools-Most-Small-Businesses-Dont-Get-Right-Part-2-of-2/-422273431260239272.html
2014-03-03T15:10:00Z
2014-03-03T15:10:00Z
<p><strong><br /></strong></p>
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.creators.com/" target="_blank">Creators.com</a><br /><br /><br />Here are more highlights from my conversation with Randye Spina, small business marketing expert and author of the book "Affordable Marketing Solutions: Proven Techniques to Profitably Market Your Small Business" (<a href="http://www.myaffordablemarketing.com" target="_blank">www.myaffordablemarketing.com</a>):</p>
<p><strong>Signage. </strong><br />RANDYE: A while ago I saw a very expensive four-color standalone sign for a Mexican restaurant at a bus stop. The sign said how great their burritos were and posted a phone number, but there was no location mentioned. Now, if you're hungry and you drive by the sign, or you're on the bus, are you going to call them and order a burrito? No! You want to know where the wonderful burritos are!<br /> <br /><strong>Your Website. </strong> <br />RANDYE: Success in Internet advertising depends entirely on how the search engines see you. You want your Web copy to be easily readable by humans, of course, but if you want to be found online you have to write for the search engines. A good search engine optimization (SEO) professional will charge around $500 -$750 for strategy and specific recommendations on how to do that.<br /> <br />Also, you should look at your website statistics now and again to see where visitors are coming from, how they're searching for you, and how many page views are translating into actual sales (what Web professionals refer to as your "analytics"). <br /> <br />Three excellent (and free) resources I use frequently are:
<ul>
<li>Google Analytics (<a href="http://www.google.com/analytics" target="_blank">www.google.com/analytics</a>);</li>
<li><a href="http://getlisted.org" target="_blank">http://getlisted.org</a> (which tells you if your website is showing up on the top search engines, not just Google); and</li>
<li><a href="http://www.whois.sc" target="_blank">www.whois.sc</a> (which "scores" your website's visibility -if your score is below 90 you're likely not using the correct key words/phrases for the search engines to pick up).</li>
</ul>
<strong>Social Media Postings.</strong> <br />RANDYE: The jury is out on how effective social media advertising is for small businesses, but if you're going to do it, then DO it. Update your postings every day. Set aside 10 minutes first thing in the morning or before you go to bed at night.<br /> <br />You don't have to use all the available social media platforms. Choose venues that are appropriate for your business. For example, an accountant has no business wasting time with Instagram(r) or Pinterest(r); he or she should be on LinkedIn(r). Just the opposite, however, would be true for an interior designer or hair salon whose work needs to be seen visually.<br /> <br />Once you have established a social media presence for your business, you need to link your website to your postings and tell people to "follow you" (on Twitter(r)) or "like you" (on Facebook(r)). <br /> <br />Finally, you need to reach out to your clients to tell them you're on social media and make it easy for them to find you. If you have a retail outlet, put up a sign by the cash register, or have front line employees talk about it during the checkout process.<br /> <br />CLIFF: One of the dirtiest secrets of Internet marketing is that most people learn about new Websites from offline sources such as newspaper articles and recommendations from fellow humans.<br /> <br /><strong>E-Mail Newsletters.</strong> <br />RANDYE: Don't try to do this yourself. Use an e-mail marketing service, such as ConstantContact(r), that looks professional and guarantees that your newsletters comply with federal and state anti-spam laws.<br /> <br />If you do use your own e-mail account to send "blanket" e-mail messages, make sure that:
<ul>
<li>you use ONLY the "bcc" function when you send your newsletter, so that individual recipients do not see other recipients' e-mail addresses; and </li>
<li>you include opt-out instructions at the bottom of each transmission (with a link that works!).</li>
</ul>
<strong>Web Video.</strong> <br />Video on your website should be on the home page. Why? Because Google(r) indexes home pages with video higher in its search engine rankings than it does sites that have no video, or where the video is buried on an interior page. A home page with video has a 54% higher chance of landing on "page one" of customer searches. <br /> <br />CLIFF: A link to a YouTube(r) page is great, but won't have the same clout with search engines.<br /> <br /><strong>Live Appearances.</strong> <br />CLIFF: When people are looking for contractors or professional help, they don't buy your services. They buy you. Getting yourself in front of prospective customers and letting them know you are easy to deal with and affordable can be a great way to build brand recognition and "buzz" in your community.<br /> <br />But your personal appearances won't generate results if your audience comes away thinking they are glorified sales pitches. I personally find that talking as little about myself and my law practice works wonders when I give a talk to a local business group. I focus on the information my audience came to hear.<br /> <br />RANDYE: Remember to make your talks both entertaining and informative: you can't teach anyone anything if you can't keep them awake. Be sure to give your audience lots of takeaway handouts with your contact information on them. And always - always - close your talk by offering a free consultation or other benefit to your attendees.<br /> <br /><strong><br /><br />Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series<em> 'Money Hunt'</em>. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit their Web page at <a href="http://www.creators.com">www.creators.com</a>. COPYRIGHT 2014 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.<em><em> <br /></em></em></p>
Staff
2014-03-03T15:10:00Z
Twelve Marketing Tools Most Small Businesses Don't Get Right (Part 1 of 2)
Staff
http://www.DrLaura.com/b/Twelve-Marketing-Tools-Most-Small-Businesses-Dont-Get-Right-Part-1-of-2/-404026476169394757.html
2014-02-24T15:05:00Z
2014-02-24T15:05:00Z
<p><strong><br /></strong></p>
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.creators.com/" target="_blank">Creators.com</a><br /><br /><br />No matter how successful you are in your business, you can always improve your marketing strategy.</p>
<p>Randye Spina is a leading small business marketing expert and author of the book "<em>Affordable Marketing Solutions: Proven Techniques to Profitably Market Your Small Business</em>" (<a href="http://www.myaffordablemarketing.com" target="_blank">www.myaffordablemarketing.com</a>). Here are some highlights from a long conversation we had recently about the 12 marketing tools most small businesses use, but seldom get right. </p>
<p><strong>Business Cards. </strong> <br />RANDYE: This is the most frequently used of all small business marketing tools. First, print on the back on the card. You get 100% more space for just 25% more print cost. Also, use the same font and colors as much as possible on all your marketing materials. This will give you a consistent business identity and help with brand recognition. </p>
<p>CLIFF: "Bullets" describing the goods or services you provide, or five key marketing messages you want your customers to remember, make excellent content for the back of the card. </p>
<p><strong>Display Advertising.</strong> <br />RANDYE: Frequency is everything. Too many times I hear clients complain that "my ad didn't bring in one new customer." Well, one ad won't do anything. A small ad run six times at two-month intervals is far more effective than a large ad run once or twice.</p>
<p>Print publications are losing readership, and even those readers are "skimming" rather than reading, but if you're targeting older people then print will still work. Online display ads are less expensive, but there's tons of competition, so be sure they are graphically eye-catching. Try using dotted lines like a coupon to get more attention.</p>
<p><strong>Direct Mail.</strong> <br />RANDYE: I live on the sixth floor of a high-rise condo, yet I can't tell you how many direct mail pieces I get for swimming pools, gutter cleaning and other goods and services that I can never use. When buying address lists from commercial brokers you should make sure they are sorted to include only the most likely prospects for your specific business.</p>
<p>CLIFF: Also, watch your timing. Soon after I had my house power-washed last year, I got a blizzard of post cards from power-wash companies. Too late! The time to advertise for snow removal services is in September or October, not January.</p>
<p><strong>Trade Shows.</strong> <br />RANDYE: Trade shows are all about eye appeal. Use professionally designed booth materials and do proper pre-show marketing so your market will know you're there. You should also have some means of collecting attendees' business cards so you can send them a follow-up promotion within two weeks. For example, give someone a free iPod(r) if you pick their business card from a goldfish bowl.</p>
<p>CLIFF: You should try to spend as little time at your booth as possible. Get a couple of extremely attractive young people to manage your booth, hand out giveaway items, and answer basic customer questions (just be sure they can track you down fast on your mobile phone if a journalist or other important person shows up at your booth). You should be walking the floor yourself, looking for potential new business partners and customers, sizing up competitors, schmoozing with industry "players," and learning about some of the new developments that may make your business obsolete. That's what trade shows are all about</p>
<p>The less your "booth people" know about your business, the less likely they will give away sensitive information to someone who seems to be a highly motivated customer but is really a competitor in disguise.</p>
<p><strong>Stenciling Your Car or Truck. </strong> <br />RANDYE: You would be amazed how many people hire plumbers and other contractors after seeing the stenciling on their trucks in the neighborhood. Remember that the stenciling needs to be large enough to see, and graphically interesting so it creates a visual impression. Your company name and telephone number should also be easy to remember: people with both hands on the steering wheel will not be able to write them down for later reference.</p>
<p>CLIFF: You should stencil the hood, trunk and both sides of your vehicle. The hood stenciling should be "reverse image" so people ahead of you can read your message in their rear-view mirrors.</p>
<p><strong>Brochures.</strong> <br />RANDYE: It's best if you create these as "self-mailers" - with space for the recipient's address and postage so you don't have to use a separate envelope. Professionals, especially, should have a brochure describing their services, credentials, testimonials from clients and others, and fee schedule.</p>
<p>CLIFF: Brochures are expensive to write, design and print so you will need to spent lots of time getting the details right. Also, proofread them carefully: once you print thousands of brochures, it's embarrassing (and credibility killing) to correct typographical errors and make changes by hand. </p>
<p>Many of the benefits of a marketing brochure can be achieved by a killer small business website. They are much cheaper to create, and you can update them in "real time" to correct mistakes, make changes and give your customers new and timely information.</p>
<p>More about those next week.</p>
<p><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series<em> 'Money Hunt'</em>. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit their Web page at <a href="http://www.creators.com">www.creators.com</a>. COPYRIGHT 2014 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.<em><em> <br /></em></em></p>
Staff
2014-02-24T15:05:00Z
Nine Ways to Find Inspiration and Get Things Done
Staff
http://www.DrLaura.com/b/Nine-Ways-to-Find-Inspiration-and-Get-Things-Done/860092334756549927.html
2014-02-03T15:00:00Z
2014-02-03T15:00:00Z
<strong>Jill Hart </strong><br /><a href="http://jillhart.com/wordpress/" target="_blank">JillHart.com</a><br />
<p>Every business owner has times of frustration, when nothing seems to go right and every customer seems to be displeased. So, how do we find inspiration to move forward during those times? Here are a few ideas:</p>
<p><strong>1. Talk to Someone<br /></strong>Sometimes the best way to get the frustration out is to simply talk about it. That may mean coffee with a close friend or it may mean making an appointment with a counselor. Either way, find a trusted person to talk with and who will give you godly advice.</p>
<p><strong>2. Listen to Inspiring Music<br /></strong>There are certain songs that lift my spirits when I find myself "in a funk." For me, tunes from Christian artists like Toby Mac, Britt Nicole and LeCrae are what get my foot tappin'. Find what works for you and make a point to really listen to the words and enjoy the music. Let it lift you out of the doldrums.</p>
<p><strong>3. Do Something for Yourself<br /></strong>I know this goes against the grain for many of us, but there really does come a time when it's okay to do something for yourself that you enjoy. It may be getting a pedicure, going out to lunch with a friend, or even grocery shopping by yourself (you moms out here know what I mean by this one).</p>
<p><strong>4. Do Something for Someone Else<br /></strong>This one seems counter-productive. How can do something for someone else help ME? But it's amazing how helping someone really does bless the giver as much as the recipient. If you enjoy cooking, make a meal for someone who is struggling. If you like to clean, help a new mom get some of her household chores under control.</p>
<p><strong>5. Take Yourself to the Movies<br /></strong>This one seems almost silly, but movies truly can inspire. We watched <em>Here Comes the Boom</em>, a great movie with Christian undertones (see Kevin James' interview about his faith in The Christian Post). It's an inspirational movie that made me want to go out and live boldly. Find a movie that inspires you and allow yourself to soak it in.</p>
<p><strong>6. Do Something New<br /></strong>Sometimes just stepping out of your comfort zone is enough to chase the doldrums away. Take a chance. Join that new Bible Study at church. Join that new class at the gym. Push yourself to do something you normally wouldn't do.</p>
<p><strong>7. Learn Something<br /></strong>You know that cooking class that you've been wanting to take at the community college down the road? Now is the time. Or maybe it's a class at your local craft store. Why not now?</p>
<p><strong>8. Go Outside<br /></strong>I've always been a bookworm, so playing outside felt like punishment to me when I was young. Now I look forward to those sunny days where I can be outside with my kids. Take some time to stroll through the park, go fishing, or take a bike ride. Soak in the sunshine and let it sooth your soul.</p>
<p><strong>9. Get Moving - literally<br /></strong>About a year ago, my husband and I made the commitment that we would walk for thirty minutes a day, 5 times a week. That kick started not only some major weight loss for us both, but it also brought me energy in a way I never expected. If you're down in the dumps, one of the best ways to blow off steam or just simply re-energize is to exercise.</p>
<p>Whatever it is that fills your tank, make it happen this week. Get moving, get active - force yourself to do something that you enjoy and that will inspire you. It will take some effort at first, but once inspiration hits, you'll have forward momentum that you can build on. Believe me, it's worth the trouble.</p>
<p>** Please note that this article is referring to those "down in the dumps" feelings - NOT clinical depression. If you are experiencing depression or mental health issues, you should seek professional help.</p>
<p><strong>Jill Hart's</strong> entrepreneurial career began in her teens when she spent a summer working with her father who ran his own business. When he put her in charge of a Coke machine and allowed her to keep the profits, she saw the benefits of being her own boss. She is the founder of Christian Work at Home Ministries and the co-author of <em>So You Want To Be a Work-at-Home Mom</em>. Jill has articles published in <em>In Touch</em> Magazine, <em>P31 Woman </em>magazine and Focus on the Family's <em>Thriving Family</em>, as well as across the web on sites like DrLaura.com. She speaks to audiences around the country about faith and business topics. Learn more about Jill at <a href="http://jillhart.com/wordpress/" target="_blank">JillHart.com</a> and connect with her on "<a href="http://www.facebook.com/SpeakerJillHart" target="_blank">http://www.facebook.com/SpeakerJillHart</a>" "FB Jill Hart" and "<a href="http://twitter.com/cwahm" target="_blank">http://twitter.com/cwahm</a>." Permission granted for use on DrLaura.com.</p>
Staff
2014-02-03T15:00:00Z
Six Things You Can Do to Reduce Your Taxes this Year
Staff
http://www.DrLaura.com/b/Six-Things-You-Can-Do-to-Reduce-Your-Taxes-this-Year/230747045552469954.html
2014-01-13T15:01:00Z
2014-01-13T15:01:00Z
<p><strong><br /></strong></p>
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.creators.com/" target="_blank">Creators.com</a><br /><br /><br />In last week's column, I wrote about some of the recent tax law changes that you will have to deal with when filling out your tax return for the year.<br /> <br />Is there anything you can do to minimize the impact of these changes?</p>
<p>The short answer is "yes, maybe". Here are six things small business owners may be able do to reduce their tax exposure this year.<br /> <br /><strong>Divorce Your Spouse (At Least On Your Tax Return). </strong> The new tax rates that went into effect last year created a significant "marriage penalty" for spouses who file their taxes jointly. Generally:</p>
<ul>
<li>married couples with income of more than $250,000 ($125,000 if filing separately) have to pay the 0.9% additional Medicare Tax and 3.8% additional tax on "net investment income";</li>
<li>married couples with income of more than $300,000 ($150,000 if filing separately) can no longer take all their personal exemptions and itemized deductions; and</li>
<li>married couples with income of more than $450,000 ($225,000 if filing separately) face an additional 4.6% tax on ordinary income.</li>
</ul>
<p>If there is a large income discrepancy between you and your spouse and you are filing jointly, it may make sense for you to file separately this year if doing that will reduce one spouse's income below the appropriate thresholds. For example, if a married couple where the husband has income of $500,000 and the wife has income of $100,000 files separately, the recent tax increases would not apply to the wife's income and she will retain all personal exemptions and itemized deductions. If that couple files jointly, the additional taxes will apply to their combined $600,000 income less the threshold amount, and the couple will lose some of their personal exemptions and itemized deductions.</p>
<p><strong>Form a Limited Liability Company (or Better Yet, a Corporation) for Your Business.</strong> "Above the line" deductions reduce both your "adjusted gross income" (AGI) and your "modified adjusted gross income" (MAGI), while below-the-line or "itemized" deductions do not. Your level of AGI or MAGI is much more important now as they determine your exposure to the 3.8% net investment income tax and the phase-out of your itemized deductions and personal exemptions.</p>
<p>If you are not currently treating your moneymaking activities as a real "business", forming a corporation or LLC may enable you to convert many of your itemized deductions into "ordinary and necessary business expenses", which are above-the-line deductions for self-employed people.</p>
<p>Forming a "C" corporation gives you an additional benefit, in that corporate tax rates are currently much lower than the individual tax rates owners of LLCs and other "pass through" entities have to pay, and there's talk of reducing corporate tax rates even further. Taking money out may even be deductible to the corporation if you do it right.</p>
<p><strong>Take the Home Office Deduction. </strong> The eligibility rules for claiming a home office deduction have been loosened. People who have no fixed location for their businesses can claim a home office deduction if they use the space for administrative or management activities, even if they don't meet clients there. Doctors, for example, who consult at various hospitals, or plumbers who make house calls, can now qualify. You must, however, use the space exclusively for business.</p>
<p><strong>Depreciate Your Home.</strong> Even if you are taking the home office deduction, you may not be depreciating your home office for tax purposes. Doing so gives you a bigger deduction, but keep in mind that if you sell your home you will have to pay tax on any capital gain that results from depreciation claimed for the office after May 6, 1997.</p>
<p><strong>Fire Some People.</strong> Under the Affordable Care Act, small businesses with 50 or more "full-time employees" are required either to provide them with qualified health insurance coverage or pay a penalty to the IRS. If you have part-time employees (or independent contractors that can be reclassified as employees because you haven't been following the rules), the calculation becomes quite tricky.</p>
<p>Speak with your tax advisor as soon as possible and do the "Obamacare headcount". If you find yourself uncomfortably close to 50 full-time employees, consider laying off some employees, or converting some full-timers to part-time status, in order to avoid the Act's requirements.</p>
<p><strong>Give Away Lots of Stuff.</strong> One of the few itemized deductions to remain unscathed by the new tax laws is the deduction for charitable contributions. Give generously, and give often, in 2014 to take maximum advantage of the deduction. If you are considering a significant 2014 contribution to a public charity (such as a church, synagogue, or college), it will usually save you taxes if you contribute appreciated long-term capital gain property, rather than selling the property and contributing the cash proceeds to charity.</p>
<p>Finally, if you plan on dying in 2014, you and your spouse can reduce your taxable estate by making annual gifts to your children and others up to $14,000 each ($28,000 total) for each donee.</p>
<p><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series<em> 'Money Hunt'</em>. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit their Web page at <a href="http://www.creators.com">www.creators.com</a>. COPYRIGHT 2014 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.<em><em> <br /></em></em></p>
Staff
2014-01-13T15:01:00Z
Getting Your Tax Checklist Put Together for 2014
Staff
http://www.DrLaura.com/b/Getting-Your-Tax-Checklist-Put-Together-for-2014/-935368019218765073.html
2014-01-06T15:01:00Z
2014-01-06T15:01:00Z
<p><strong><br /></strong></p>
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.creators.com/" target="_blank">Creators.com</a><br /><br />Now that the holidays are over and you have (hopefully) recovered from your New Year's hangover, it is time to start thinking about:</p>
<ul>
<li>getting your taxes in order for 2013; and</li>
<li>planning for your 2014 tax bill.</li>
</ul>
<p>First, the bad news: 2013 is over. It is simply too late to change anything that happened on or before December 31, 2013. Whatever happened (or didn't happen) on or before that date, you are stuck with its tax consequences, for better or worse.</p>
<p>The good news is that there's still a lot you can do (legally) to manage your 2013 tax bill and get ready for 2014. Here are some tips:</p>
<p><strong>Watch your checks.</strong> If someone paid you for work you did in 2013 and the check arrived in the mail - or if you received payment via PayPal -- on or before December 31, you are required to report that as income for 2013, not 2014. Any checks or PayPal payments you receive now should be booked as 2014 income.</p>
<p><strong>Did you set up a business entity in 2013?</strong> If you set up a corporation or limited liability company (LLC) for your business on or before December 31, 2013, you will be required to file the appropriate tax form this spring even though the business didn't make any money. For single member LLCs, that's Schedule C on your Form 1040. For partnerships and multimember LLCs, that's Form 1065. For corporations and S corporations, that's Form 1120 or 1120-S (due March 15, NOT April 15).</p>
<p>The good news is that if you incurred expenses in setting up the business, those can be claimed as deductions on your 2013 tax return. If the loss is big enough, it may be able to offset other income you had last year from your day job and other sources.</p>
<p><strong>Have you set up a retirement plan?</strong> Here's some really good news. Even though the books are closed for 2013, you can still make contributions to your retirement plan (a Simplified Employee Pension or SEP, an individual retirement account, or a "solo" 401K) right up until April 15 and take the deduction on your 2013 return. Even better, you can set up a retirement plan now, make a contribution to it before April 15, and take the deduction on your 2013 tax return. Still even better, if you "go on extension" with your 2013 tax return, you can make the contribution up until October 15 (September 15 for corporations) and still take the deduction on your 2013 tax return.</p>
<p>The only bad news: if you "go on extension" and tell the IRS you plan to make a contribution before October 15, you sure as Heck better make the payment on time to avoid penalties, interest and a possible audit.</p>
<p><strong>Time for 1099s, W-2s and K-1s.</strong> If you paid an individual or single member LLC more than $600 for services performed during 2013, you have until January 31 to send them IRS Form W-2 (if they were employees), 1099 (if they were independent contractors), or K-1 (if they were shareholders, partners or fellow members of an LLC). You cannot download an electronic form for these; you must still use the paper form and send a "carbon copy" to the IRS when mailing the original to the person you paid.</p>
<p>If the Form is not postmarked by January 31, you will have to pay a penalty to the IRS of $50 for each Form that is late. Also, many people file their tax returns early, and they will hate it - I mean, really hate it - if they have to amend their 2013 returns to reflect a Form you sent them after the deadline.</p>
<p><strong>Calculate Your Monthly Escrow for Estimated Taxes. </strong> If you pay estimated taxes, now is the time to crunch the numbers and "fine tune" the amount you put into escrow each month to make sure there's enough cash on hand to make the quarterly payments.</p>
<p><strong>Start Planning for 2014.</strong> Now that you've got 2013 under control, start planning for 2014 taxes. There are three major 2014 changes in the tax laws you need to know about:</p>
<ol>
<li><strong>Medicare Surtax.</strong> Self-employed people who make more than $200,000 (for an individual) or $250,000 (for a couple) will be assessed an additional 0.9% for Medicare in 2014, on top of the existing 1.45% Medicare payroll tax and a 3.8% Medicare tax on unearned income (such as dividends, interest, capital gains and rental income).</li>
<li><strong>Medical Expense Restrictions.</strong> Taxpayers under the age of 65 who itemize their medical expense deductions will only be able to do so in 2014 if those expenses exceed 10% of their adjusted gross income (AGI); previously the "cap" was 7.5% of AGI. </li>
<li><strong>Obamacare Penalty.</strong> If you are not currently participating in a qualified or "Grandfathered" health care plan, you will have to pay a file of $95 or 1% of your income, whichever is higher, in 2014. <br /> </li>
</ol>
<p><strong>Cliff Ennico</strong> (<a href="mailto:cennico@legalcareer.com">cennico@legalcareer.com</a>) is a syndicated columnist, author and host of the PBS television series<em> 'Money Hunt'</em>. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit their Web page at <a href="http://www.creators.com">www.creators.com</a>. COPYRIGHT 2014 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.<em><em> <br /></em></em></p>
Staff
2014-01-06T15:01:00Z
How to Get Started Working from Home
Staff
http://www.DrLaura.com/b/How-to-Get-Started-Working-from-Home/-788074748461998191.html
2013-11-04T15:15:00Z
2013-11-04T15:15:00Z
<strong>Jill Hart </strong><br /><a href="http://jillhart.com/wordpress/" target="_blank">JillHart.com</a><br />
<p>You've made the decision that you want to work from home, but now you're feeling overwhelmed and unsure of where to start. This is where most of us begin our work at home journey. When I quit my corporate job thirteen years ago in favor of at-home employment, I was full of excitement ... and terror. I've learned a lot over the years, but the foundation that I started with is what has kept me moving steadily forward.</p>
<p><strong>What To Do</strong></p>
<p>The first decision you'll need to make is what you will do from home. You may have funding available to you and be able to open your own small business, or you may decide to seek employment. The first step is knowing which direction you're headed in.</p>
<p>Take time to research each option and know what is available to you and what you can handle right now. I began working from home as a contractor for a local business. I built my own business up during my off hours until it was at a point where I could work for myself full-time.</p>
<p><strong>Where You'll Be</strong></p>
<p>The next step you need to take is to evaluate your home and determine where you can set up a dedicated work space. I have found that I'm much more focused and efficient when I am working at my desk rather than at the kitchen table or from my laptop in front of the TV. No matter the size and shape of your home, find a place that can be set aside for your work area, even if you have to be creative and work in a closet.</p>
<p><strong>When It Will Take Place</strong></p>
<p>Now you must think through your routine. When will be available to work at this new at-home endeavor? Be honest with yourself about how many hours you have open for work, and what time of day you can be available. By knowing your availability, you can narrow down job choices or determine hours of operation if you're opening your own business. Make others aware of your new work hours and be consistent so that your customers know when and how to reach you.</p>
<p><strong>Make it Happen</strong></p>
<p>Taking the step of faith to begin working from home is a big decision. It will take more determination and perseverance than you can imagine right now. However, if you think through the necessary steps, you will create a firm foundation for yourself that will serve you long into the future.</p>
<p>When the time comes, be bold and walk forward, knowing that you've done the planning, organizing and dreaming necessary to make big things happen.</p>
<p><strong>Jill Hart's</strong> entrepreneurial career began in her teens when she spent a summer working with her father who ran his own business. When he put her in charge of a Coke machine and allowed her to keep the profits, she saw the benefits of being her own boss. She is the founder of Christian Work at Home Ministries and the co-author of <em>So You Want To Be a Work-at-Home Mom</em>. Jill has articles published in <em>In Touch</em> Magazine, <em>P31 Woman </em>magazine and Focus on the Family's <em>Thriving Family</em>, as well as across the web on sites like DrLaura.com. She speaks to audiences around the country about faith and business topics. Learn more about Jill at <a href="http://jillhart.com/wordpress/" target="_blank">JillHart.com</a> and connect with her on "<a href="http://www.facebook.com/SpeakerJillHart" target="_blank">http://www.facebook.com/SpeakerJillHart</a>" "FB Jill Hart" and "<a href="http://twitter.com/cwahm" target="_blank">http://twitter.com/cwahm</a>." Permission granted for use on DrLaura.com.</p>
Staff
2013-11-04T15:15:00Z
Why Social Media Marketing Is Like Driving a Car in 1915
Staff
http://www.DrLaura.com/b/Why-Social-Media-Marketing-Is-Like-Driving-a-Car-in-1915/660612938186111339.html
2013-10-14T15:05:00Z
2013-10-14T15:05:00Z
<p><strong><br /></strong></p>
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com">SucceedingInYourBusiness.com</a></p>
<p>I was privileged this week to give a keynote address on "Building a World Class e-Commerce Business" for the semiannual Sellers' Conference for Online Entrepreneurs (SCOE) in Philadelphia, Pennsylvania. This major networking event, now in its 9th year, is one of the leading conferences for online retailers, wholesalers and distributors, but is an absolute "must attend" for third party sellers on Amazon.com.</p>
<p>Interestingly, the questions that followed my presentation didn't have as much to do with the content of my talk as my qualifications to give the talk in the first place. Why would a lawyer (admittedly a small business lawyer specializing in tech startups) give a talk on marketing success? After all:</p>
<ul>
<li>I haven't personally built a million dollar e-commerce empire;</li>
<li>I have 120 followers on Twitter.com but haven't yet posted a tweet;</li>
<li>My Facebook page hasn't been updated in more than a year; and</li>
<li>(I shouldn't admit this in print) I am still using Windows XP (although I will be switching out next year when Microsoft stops providing service). </li>
</ul>
<p>The answer is simple: I have worked with literally hundreds of e-commerce entrepreneurs since the dawn of the Internet (circa 1993). When you work with that many, you see patterns. You see patterns in the ones that "make it" and grow big, and you see patterns in the ones that fail.</p>
<p>And one of the most important patterns of all is the fact that despite all of the hoopla about social media - how it's changing the world, the way we think, etc. - the basic rules of small business success remain unchanged.</p>
<p>Like: you have to know what works and what doesn't.</p>
<p>A point I have been making for years is that selling online, and marketing your business online (regardless of how you do it), is a lot like driving a car in 1915. We are not yet (although we are slowly getting there) in a world where "plug and play" rules. You still have to know what goes on "under the hood."</p>
<p>Two days ago my computer printer broke down (my world as a lawyer is still very much "dead trees" driven and I have to print out lots of documents). I drove to the nearest Office Max and bought a state-of-the-art "all in one" machine (combining printer, fax, scanner, copier and washer/dryer) made by a leading manufacturer - the same one that manufactured my old printer.</p>
<p>Lesson # 1: if you want upgrades to go smoothly, stick with the same manufacturer and the same system.</p>
<p>The new printer was a marvel. No sooner had I plugged it in then a TV screen lit up and walked me step by step through the installation process. It even had "animation" features showing me exactly how to install the ink cartridges, load in the input and output trays, etc.</p>
<p>At the end the little TV screen assured me my printer was completely installed and communicating with my computer.</p>
<p>A few minutes later, I tried printing a document, and got the dreaded "couldn't find printer" box. The little TV screen on the printer continued to assure me that my printer was connected.</p>
<p>What to do? Did I buy a "lemon"?</p>
<p>Not at all. I checked the "printer settings" page on Windows XP (you hit the "start" button, then "control panel", then "printers"), and saw that my computer was still "defaulting" to my old printer, which had been disconnected. By changing the "default printer" to the new printer's icon, the printer started working miraculously, and did everything the manufacturer promised.</p>
<p>My point is this: if I had not known to check the "printer settings" (and many computer users don't), I would have assumed there was something wrong with the printer. I would have returned it to the store, or the manufacturer.</p>
<p>I have no doubt we will (fairly soon) be living in a world where selling online is as easy as driving a car in 2013. But we still have a way to go, and there's no substitute for a detailed knowledge of how your personal technology works.</p>
<p>Here are some really cool new resources for online sellers I learned about at the SCOE conference:</p>
<p>One of the biggest problems Amazon sellers face is sales tax compliance. Amazon has a nasty habit of moving your inventory from warehouse to warehouse, giving you "nexus" in faraway states. While Amazon helps you calculate and collect sales tax in these states, it relies on you to register in each state and pay taxes to the appropriate authorities. TaxJar (<a href="http://www.taxjar.com/" target="_blank">http://www.taxjar.com/</a>) is a new service designed to help small retailers process sales tax payments in all states where they have "nexus". Stay tuned for more information in a future column.</p>
<p>Sweating the upcoming holiday season? "Beat the Rush!", a new book by Maureen Benner (<a href="http://www.mocatreview.com/" target="_blank">http://www.mocatreview.com/</a>), shows you five ways a new Amazon Online Marketplace seller can "prepare for Quarter Four and the Holidays." And it costs only $7.</p>
<br /><strong>Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">SucceedingInYourBusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em>, and 15 other books. COPYRIGHT 2013 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.<em><em> <br /></em></em>
Staff
2013-10-14T15:05:00Z
How to Negotiate an Exclusive Distributor Agreement for Online Sales
Staff
http://www.DrLaura.com/b/How-to-Negotiate-an-Exclusive-Distributor-Agreement-for-Online-Sales/348567452225561154.html
2013-10-01T15:18:00Z
2013-10-01T15:18:00Z
<p><strong><br /></strong></p>
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com">SucceedingInYourBusiness.com</a></p>
<blockquote>
<p>"I have been selling merchandise on eBay and Amazon for some time. I would like to build a 'brand' for the merchandise that I sell, but I'm being told that the only way to do that (since I'm not the manufacturer of these goods, only the distributor) is to get an exclusive distributor agreement with each manufacturer so that I am the only person selling these goods on eBay and Amazon.<br /><br />What do you think of this idea? If it's a good one, how do I go about negotiating contracts with these manufacturers?"</p>
</blockquote>
<p>Generally, it's hard to build a "brand" online when you are not the manufacturer of the merchandise you sell. Most new sellers on eBay and Amazon make the mistake of selling goods that are "all over the map". While this may be a good way to get started in online sales and "learn the ropes," you won't be able to grow an online selling business unless:</p>
<ul>
<li>you specialize in a merchandise "niche"; and</li>
<li>you have merchandise that isn't easily available elsewhere.</li>
</ul>
<p>Unless you have an established track record of selling online, manufacturers probably will be hesitant to deal with you unless you show them you are creditworthy and have the expertise and sophistication to maintain their brand image online. Most large manufacturers won't want to deal with you at all (they deal only with other big companies like themselves), but many smaller family-owned businesses may give you a shot at representing their merchandise.<br /><br />If your manufacturers are willing to give you the exclusive right to handle their merchandise online, here are some of the key points you will have to negotiate with each manufacturer.</p>
<ol>
<li><strong>The Scope of Your "Exclusive Territory".</strong> Will you be the manufacturer's exclusive distributor for the whole Web? Only eBay? eBay and Amazon? You should seek as broad a territory as possible. Also, since people can access the Web anywhere in the world, you should not accept any sort of geographic boundaries on your activities (for example, "online sales to customers in the continental United States"), as there is no practical way to enforce them.</li>
<li><strong>The Term of the Agreement.</strong> Once you establish an online "brand" for a manufacturer, it's a sure bet they will be approached by other online vendors offering to do a better job than you can. To protect your investment, you should ask the manufacturer for as long a term as possible (I recommend at least five years), with options for you to renew for additional periods.</li>
<li><strong>Will You Be Allowed to Carry Competing Merchandise?</strong> Just as you want an "exclusive" for online sales, your manufacturer may want an "exclusive" as well by prohibiting you from carrying their competitors' merchandise. You should seek to keep these as limited as possible: for example, if a jewelry designer asks you not to deal with "any other jewelry designer", you can respond by offering not to deal with "any jewelry designer who specializes in Celtic inspired designs."</li>
<li><strong>Will You Be Required to Purchase "Minimum Quantities" of Merchandise?</strong> In a "true" distributorship, you buy goods from the manufacturer at wholesale prices and then resell them online, keeping the difference as your profit. Some manufacturers will grant you an "exclusive" only if you agree to buy minimum quantities of merchandise each month or quarter. Keep these as low as possible, and negotiate a credit for any merchandise you return to the manufacturer that has been in your inventory for an unreasonably long time.</li>
<li><strong>Will the Manufacturer Require You to Sell at Specific Prices?</strong> It is illegal for a manufacturer to dictate your resale price, or set a maximum resale price for their goods. The law is hazier on whether a manufacturer can set a minimum resale price. If a manufacturer engages in "minimum advertised price" or MAP pricing, you may have to go along with it. Just be sure that you retain the right to offer "clearance" prices for merchandise that is in your inventory for a long time if the manufacturer refuses to take it back.</li>
<li><strong>Will the Manufacturer Agree to Notify Other Distributors of Your Exclusive Rights? </strong>Your agreement should contain a clause requiring the manufacturer to notify all of its other distributors of your exclusive online rights, specifically prohibiting them from selling the manufacturer's goods on their own websites.<br /> </li>
</ol>
<p>Here's a final question you should ask yourself: how will you deal with "retail arbitrageurs" and other folks who circumvent your exclusive relationship by buying the manufacturer's goods (legally) at retail and then reselling them online? If this is a serious problem (lots of sellers are doing this), you may have to send them nasty letters ordering them to "cease and desist" their online selling activities. <br /><br />If only a handful of items are being sold through "retail arbitrage," you may just want to ignore it. After all, it's probably how you yourself got started.</p>
<p><strong>Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">SucceedingInYourBusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em>, and 15 other books. COPYRIGHT 2013 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.<em><em> <br /></em></em></p>
Staff
2013-10-01T15:18:00Z
Protecting Your Online Business With 'Exclusive' Agreements
Staff
http://www.DrLaura.com/b/Protecting-Your-Online-Business-With-Exclusive-Agreements/819476547885650492.html
2013-08-26T22:30:00Z
2013-08-26T22:30:00Z
<p><strong><br /></strong></p>
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com">SucceedingInYourBusiness.com</a></p>
<p>I buy a fashion accessory at the full retail price, directly from the manufacturer's own retail store, and then resell them on Amazon and eBay where, believe it or not, I make money. The only official way to get this product as 'new' in the United States is through the manufacturer. They know exactly what I am doing, as this is not a product a customer orders hundreds of at a time every two weeks. In fact, on their Facebook page, when they are out of stock or need shipping to Canada, they direct customers to my eBay or Amazon pages.</p>
<p>Of course I have asked them a million times for a volume discount, but they will not give me one. To be honest, I started selling a half dozen of these on eBay to make some beer money, but it has grown beyond my wildest expectations and now about one in 20 of these sold in the United States goes through my hands (judging by the order numbers I get).</p>
<p>The money is great; it is not hard work, and I am good at it. But I'm always looking over my shoulder for either the manufacturer pulling the rug out from under me, or worse, a lawsuit by the manufacturer.</p>
<p>Neither the manufacturer nor I make any warranties, express or implied, on this product. The manufacturer does offer the product from its own website, but my return policy is significantly better than the manufacturer’s own (and its customer service gets awful reviews online).</p>
<p>I know I can grow my sales easily. With a little advertising, I can direct more customers to my Amazon store. I have also considered setting up a separate eCommerce site and selling them there to avoid commissions from Amazon/eBay, but that may put me at greater risk of trouble with the manufacturer.</p>
<p>If you could comment on what my risk is and anything I can or should do to protect myself I would appreciate it.</p>
<p>Folks, if you don’t yet believe in the power and potential of "retail arbitrage," please re-read the above message.</p>
<p>I wouldn’t worry too much about a lawsuit here; if the manufacturer is directing buyers to your online stores, they will have a hard time proving that your activity damaged them in any way. Your online activities have been pretty notorious, and they can’t seriously argue they didn’t know what you were doing when you are buying hundreds of items every week.</p>
<p>Your biggest risk here, as you correctly point out, is that the manufacturer is offered a better opportunity for online distribution and cuts off your source of supply for this product, rendering you unable to sell it.</p>
<p>What you need here is not so much a "volume discount" as an "exclusive distributor" relationship with the manufacturer. This would guarantee you a steady source of supply, and enable you to build your business with confidence, at least for a while. You would buy the product for an agreed-upon price, in agreed-upon minimum quantities and at agreed-upon times (thereby guaranteeing the manufacturer a certain volume of sales), and resell it for whatever you can get online (legally the manufacturer cannot dictate your resale price).</p>
<p>The toughest negotiating point with the manufacturer will be the scope of your "exclusivity." Your exclusivity could cover "all online sales" or only "online sales to customers in North America." In either case this will force the manufacturer to cease selling the product online from its website, which it may be reluctant to do, especially if it has other merchandise. You might, however, be able to talk them into forwarding all inquiries for the product to you for processing.</p>
<p>As for the term of the agreement, I would ask for five years, with automatic renewals. Be sure the agreement covers any new "versions" of this product, and any complementary products the manufacturer may offer as part of the same product "line."</p>
<p>If you want to be really aggressive, you can ask the manufacturer to grant you a license to the products’ patent or other intellectual property, which would give you the right to have it manufactured by someone else if this manufacturer decides to discontinue the product for any reason.</p>
<p>If the manufacturer won’t agree to an "exclusive" distribution agreement, you might want to consider buying large quantities of the product at regular intervals of time anyway so that, as a practical matter, the manufacturer becomes dependent on your business. You are, after all, paying full retail price plus sales tax for each purchase.</p>
<p>Your bigger long-term problem with this business is that you have become too heavily dependent on one product, and one manufacturer. The safest way of managing this risk is to diversify your product offerings online to include similar merchandise that people might want to buy along with this product, but that doesn’t compete directly with the manufacturer’s other product offerings. If, of course, that’s possible.<strong><br /></strong></p>
<p><strong>Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">SucceedingInYourBusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em>, and 15 other books. COPYRIGHT 2013 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.<em><em> <br /></em></em></p>
Staff
2013-08-26T22:30:00Z
Becoming a 'Bathrobe Businessperson'
Staff
http://www.DrLaura.com/b/Becoming-a-Bathrobe-Businessperson/-120288012635415313.html
2013-05-20T14:01:00Z
2013-05-20T14:01:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com">SucceedingInYourBusiness.com</a></p>
Last week, I had the privilege of giving the keynote address at the New York State Bar Association's "Starting a Solo Practice" series, on the topic of "Becoming a 'Bathrobe Lawyer': Building a Successful Solo Law Practice Out of a Home Office." <br /><br />When we think of lawyers, accountants, architects, and other professionals, we think of them first and foremost as professionals.<br /><br />Yet, when a professional is working solo out of a home office, he or she is an entrepreneur or small business owner just like any other. And the challenges they face are exactly the same as all home-based entrepreneurs.<br /><br />Here are five key points I mentioned in my talk:<br /><br /><em><strong>Tip #1: Don't See Clients in Your Home </strong></em><br />These days, most clients are happy to work with you via phone, email, Skype, and other Internet media. If they insist on meeting with you "live," you can meet them in their offices or at a local diner (I prefer diners generally because you usually can get any kind of food you want, and if you schedule your meeting between major mealtimes, they usually will leave you alone without rushing you).<br /><br />Meeting clients in your home increases the odds of an angry spouse, and also makes it more likely that you will have issues with your local zoning authority (see below). <br /><br /><strong><em>Tip #2: Use a UPS Store Private Mailbox Address </em></strong><br />Don't use your home address as an office or mailing address. Open a "private mailbox" at your local UPS Store (the cost is about $200 to $300 a year), and have all your mail go there. That way, you will have an excuse to get out of the house at least once each day.<br /><br /><strong><em>Tip #3: Keep a Low Profile</em></strong><br />If your home-based business is too visible (for example, there are clients sitting on your lawn waiting for a meeting, or the local kids can't play basketball in the street because they're too busy dodging FedEx trucks going to your house), your neighbors will turn you in to your local zoning authority.<br /><br />Keep in mind that all home-based businesses (roughly 18 million of them, according to the U.S. Bureau of Labor Statistics) are technically illegal because you are operating a business in a part of your community that is zoned "residential." As long as you don't upset or anger your neighbors, however, you usually won't have any problem with them. After all, they're probably working from home too.<br /><br /><strong><em>Tip #4: Market the Heck Out of Your Business </em></strong><br />If you are not spending at least 20 percent of your total time on marketing-related activities, you are not "getting the word out there" and letting people know you exist. <br /><br />Oh, and remember to send your clients an email newsletter every couple of weeks. They probably won't read them, but at least you are getting your name in front of them on a regular basis so they don't forget about you. <br /><br /><strong><em>Tip #5: Take Care of Yourself </em></strong><br />Running a business out of a home office can be a lonely life, and it's easy to let yourself go. Find time to visit the gym frequently, and (men) don't forget to shave. Keep the refrigerator as empty as possible because nobody wants a 400-pound spouse.<br /><br />To view my talk online, go to <a href="http://www.nysba.org/2013StartingaPracticeGuestpassLink" target="_blank">www.nysba.org/2013StartingaPracticeGuestpassLink</a>.<br /><strong><br /><br />Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">SucceedingInYourBusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em>, and 15 other books. COPYRIGHT 2013 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.<em><em> <br /></em></em>
Staff
2013-05-20T14:01:00Z
5 Things You Need to Know to Decide if a Work-from-Home Business Is Right for You
Staff
http://www.DrLaura.com/b/5-Things-You-Need-to-Know-to-Decide-if-a-Work-from-Home-Business-Is-Right-for-You/-621306674935198385.html
2013-04-29T07:03:00Z
2013-04-29T07:03:00Z
<p><strong>By <strong>Susan Baroncini-Moe<br /></strong></strong><a href="http://businessinbluejeans.com" target="_blank">BusinessInBlueJeans.com</a><br /><br />Working from home is the Holy Grail for stay-at-home moms, right? You get to stay home, earn some extra money from your kitchen table, and you're still right there for the kids and your hubby. But running a business from home isn't as easy as it sounds. So before you decide to jump into working from home, there are a few questions you should know the answers to:</p>
<p><strong>1. What are your priorities?</strong><br />When you start a work-from-home business, you must set your priorities and make sure you know what comes first. A home business, when marketed effectively, can grow to the point where it can start to encroach upon that all-important family time. If you don't have your priorities straight and don't know what comes first, the business can start to take precedence, leaving your family behind.</p>
<p>Even if you don't have children, it's still important to have your priorities in order before you get involved in a work-from-home business, otherwise, your marriage is likely to suffer when you start spending too much time working and not enough time with your spouse.</p>
<p><strong>2. Will your spouse be on board?</strong><br />One of the most important things you need to know about starting a work from home business is whether you have consensus with your spouse. Your business, whatever it is, will take at least some of your time and energy away from your family, and that means you really do need your spouse's blessing.</p>
<p>You'll want to create a plan for how you can manage both a business and your family without letting that business negatively affect your familial responsibilities, whether you come up with that plan or let your spouse help you figure one out. For example, you might work in the mornings before the kids are awake or when they're at school, or use a slow cooker to prepare meals once in awhile so that you can get more accomplished in the day and have more time to sneak in a little work at night a couple of nights a week.</p>
<p><strong>3. Will you enjoy running a business from home?</strong><br />One of the most important factors in any business is that you should enjoy doing what you do. When you enjoy the work you're doing, it's easier to get motivated - when you love what you do, it feels less like work.</p>
<p>But don't be fooled. Just because you love what you do, it doesn't mean that's <em>all</em> you'll do. For example, let's say that you want to start a small crafting business. You won't spend <em>all </em>of your time crafting. You'll spend maybe a third of your time doing what you love, but the rest of the time you'll spend photographing the new items you've created and adding them to the website, managing orders and responding to emails, packaging and shipping your sold items, and, yes, marketing your business in various ways. So you have to decide if you'll really enjoy all of the aspects of running a business from home.</p>
<p><strong>4. Can you create a space for a work-from-home business?</strong><br />Running a work-from-home business requires concentration and a physical space where you can work. Physical space has a huge impact on how you work - if you're working from a carved out corner in the bedroom or living room, you may be surrounded by distractions like laundry that needs to be done, toys that need to be put away, and a beckoning television.</p>
<p>One way to handle distractions is by planning your time well, so that household tasks are done and don't distract you from your work. For example, before I start working most mornings, I put a load of laundry in or get the crockpot cooking with dinner, so that I know those things are still getting done while I'm working on my business.</p>
<p>Another way to handle distractions is by creating a physical space that's just for work. It's ideal if you can transform a spare bedroom into a home office, but if that's not possible, you can use foldaway screens to create the illusion of a separate workspace that minimizes distractions, even in a corner of the living room.</p>
<p><strong>5. How much time (and when) can you commit to growing a business?</strong><br />"Get rich quick" isn't real: growing a business takes time, especially if you want that business to become profitable and really bring a solid income stream into your home. If your kids are still at home, though, you may not be able to devote much of your day to your business.</p>
<p>On the other hand, if you just want to add a couple hundred extra dollars per month, then starting a small craft business and using a site like Etsy means that you can do your crafting and add items to the store at any time of day or night. You'll still need to do some marketing, but there are lots of online marketing strategies that you can do any time of day, too. And these days, if you want to offer a service but can't work when most of your potential clients are available, you can create and sell digital products that educate and inform, and sell those instead of individual services.</p>
<p>There are literally thousands of businesses that you can start and run from home to bring in extra income, and many of them can be managed so that you don't take valuable time away from your family. But knowing what you're getting into and making sure that you've set up plans and strategies to keep your priorities in order is the best way to keep your family on track.<br /> </p>
<p><strong>Susan Baroncini-Moe</strong> is the author of <em>Business in Blue Jeans: How to Have a Successful Business on Your Own Terms, in Your Own Style</em>, a business and marketing strategist, and a Guinness World Records(r) titleholder. She regularly speaks to audiences of all sizes, and she and her businesses have been featured in <em>Redbook Magazine, USA Today, MSN Living, Investor's Business Daily, Yahoo Finance,</em> and <em>American Express Open Forum</em>. You can find out more about growing your own business at <a href="http://businessinbluejeans.com" target="_blank">BusinessInBlueJeans.com</a>. Permission granted for use on DrLaura.com</p>
Staff
2013-04-29T07:03:00Z
Some More Last-Minute Tax Tips for eBay and Amazon Sellers
Staff
http://www.DrLaura.com/b/Some-More-Last-Minute-Tax-Tips-for-eBay-and-Amazon-Sellers/-382224648331379430.html
2013-04-15T14:01:00Z
2013-04-15T14:01:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com">SucceedingInYourBusiness.com</a></p>
<p>'Tis the season for last-minute tax advice. Last week, I was privileged to co-host a webinar for online sellers sponsored by <a href="http://www.kabbage.com" target="_blank">Kabbage.com</a>, a lender that specializes in financing accounts receivable and inventory for people who sell on eBay, Amazon, Etsy and other web retail venues.<br /><br />Here are some of the questions that came up during the webinar:<br /><br /><strong>Q:</strong> "I am not yet registered as a business with the government, so I have no tax I.D. number. I was just doing this as a trial for myself to see how it went first, and now plan on going forward as a registered company. How do I list myself on my tax return? Am I a sole proprietor?"<br /><br /><strong>A:</strong> You have a choice here. If you don't want to fill out Schedule C as a sole proprietor, you can report any income you received from selling stuff online as "hobby income" on line 21 of your Form 1040. The great thing about filling out Schedule C, however, is that by doing so you qualify for all kinds of great business deductions that people with only a "hobby" can't take. Talk to your accountant about filling out Schedule C and using your Social Security Number as a tax I.D. number for now.</p>
<p><strong>Q:</strong> "I have been selling merchandise on eBay for a supplier, whereby I list the items, collect the money via PayPal, keep my commission, and then send them their percentage of the profit. I just received a Form 1099-K from PayPal showing the total amount of my sales for this supplier as income. How do I show the IRS that I only received a certain percentage of each sale?"<br /><br /><strong>A:</strong> This is called "drop shipping." What you need to do is report your commissions as income, and deduct the amount you paid to the supplier as part of your cost of goods sold (COGS) on line 4 of your Schedule C. You should also send a Form 1099-MISC to the supplier showing the total amount you paid them if it was more than $600.<br /><br /><strong>Q:</strong> "We started selling merchandise out of our home last year and claimed the home office deduction. We've just been notified that we have been selected for a random home office audit by the local IRS office (lucky us). What are some of the things we should do to prepare for the audit?"<br /><br /><strong>A:</strong> First of all, don't panic. Hire an accountant and have him or her participate in the audit. IRS audits can sometimes turn into "fishing expeditions" if you're not careful - the auditor will ask some seemingly harmless questions during his or her visit, and if you're a little too candid, you might be opening a door that will enable him or her to audit other parts of your tax return. A trained accountant is less likely to make that mistake.<br /><br /><strong></strong>Also, go through your home office and remove any items of furniture, artwork and other decorations that would not be appropriate in an office setting - this is the first thing they look for when auditing home offices. A good rule of thumb: if you wouldn't have it in an office cubicle, don't have it in your home office.<br /><br /><strong>Q:</strong> "If I borrow money for my business from <a href="http://www.kabbage.com" target="_blank">Kabbage.com</a> or anywhere else, how do I treat that on my tax return? Is that considered income?"<br /><br /><strong>A:</strong> You don't have to report loans on your tax return, nor do you have to pay income tax on loans. Because you're obligated by a written agreement to repay the loan, the IRS doesn't consider the money to be income, either earned or unearned. <br /><br />When you repay the loan, you can deduct the interest you pay as a business expense, but not the principal portion.<br /><br /><strong>Q:</strong> "I sell on Amazon. Normally they hold on to the money I make for a few weeks before sending it on to me. Do I report as income amounts they were holding for me on December 31 that weren't paid to me until after January 1?"<br /><br /><strong>A:</strong> The answer depends on whether you are a "cash basis" taxpayer or an "accrual basis" taxpayer. If you are an accrual basis taxpayer, you probably should report the amounts Amazon was holding on December 31 as income. If you are a cash basis taxpayer, you probably would report it as income in 2013 when you actually received it. If Amazon sends you a Form 1099 showing the amount as income for 2012, then you should as well. <br /><br /><strong>Q:</strong> "I didn't get a Form 1099-K from PayPal this year. Do I still have to report my profits from eBay selling as income?"<br /><br /><strong>A:</strong> Yes, yes, a thousand times yes! Under current law, PayPal is required to send a Form 1099-K only if your gross sales last year were $20,000 or more AND you had more than 200 sales transactions using your PayPal account. If you made even one dollar of profit selling on eBay last year, you are required to report that as income. </p>
<br /><strong>Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">SucceedingInYourBusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em>, and 15 other books. COPYRIGHT 2013 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.<em><em> <br /></em></em>
Staff
2013-04-15T14:01:00Z
Some Last-Minute Tax Tips for eBay and Amazon Sellers
Staff
http://www.DrLaura.com/b/Some-Last-Minute-Tax-Tips-for-eBay-and-Amazon-Sellers/716463465099573277.html
2013-04-08T14:01:00Z
2013-04-08T14:01:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com">SucceedingInYourBusiness.com</a></p>
<p>I was privileged to co-host two recent webinars for online sellers sponsored by <a href="http://www.outright.com" target="_blank">Outright.com</a>, a leading accounting and financial management software tool for people who sell on eBay, Amazon, Etsy and other web retail venues.<br /><br />The webinars, with a combined attendance of over 1,000 people, generated tons of tough questions on sales tax nexus, the home office deduction, and other "cutting edge" tax issues. Here are some of them:<br /><br /><strong>Q: </strong>I rent an office/warehouse space and thus do not take a home office deduction. I report business income on a Schedule C. My husband works from home for the convenience of his employer and would otherwise meet the IRS home office test. I've been told that we cannot use the deduction for his home office because of my rented space, is that correct?<br /><br /><strong>A:</strong> Correct, but not because of your rented space. That home office is your husband's, but he doesn't have a business. Any home office maintained for the convenience of an employer does not qualify for the home office deduction. <br /><br /><strong>Q:</strong> If I did not track my mileage last year, is there still a way I can claim my mileage?<br /><br /><strong>A:</strong> Only if you can find a way to get good records of it. For example, if you have a receipt from a post office for a specific day, you might be able to say that you had mileage to and from the post office on that day.<br /><br /><strong>Q:</strong> If I have nexus in another state for sales taxes, does that mean I'm now liable for income tax reporting in that state too?<br /><br /><strong>A:</strong> Not necessarily. Talk to your accountant and ask him or her to look up the income tax "nexus" rules in the other state, which often require a greater physical presence than "nexus" for sales taxes.<br /><br /><strong>Q:</strong> Do the "nexus" rules for sales tax apply when selling to a foreign country? <br /><br /><strong>A:</strong> No, at least for U.S. taxes. If you have a physical presence in a foreign country, your business probably will be subject to that country's tax laws and social welfare legislation. Also, your buyers may have to pay value added tax (VAT) on their online purchases.<br /><br /><strong>Q:</strong> I built an outbuilding on my property which I use for my home office and for storing eBay inventory. Can I deduct any portion of the construction expenses as part of the home office?<br /><br /><strong>A:</strong> Probably not, but you might be able to include construction costs as part of the "basis" of your home office should you decide to depreciate your home. Talk to your accountant about that.<br /><br /><strong>Q:</strong> If you quit storing items in another state, does nexus disappear?<br /><br /><strong>A:</strong> Yes, as long as you don't have another kind of physical presence there; however, if you have been paying taxes in that state, you may have to file a "final" sales tax return to let the state know you have withdrawn your activities there. Be careful here, as a number of states have recently passed laws imposing "nexus" without a physical presence as long as (1) you sell more than $X worth of goods (usually between $10,000 and $20,000) to residents of that state each year AND (2) you direct your marketing and advertising activities to residents of that state. You need an accountant to tell you exactly what laws apply whenever you are in another state.<br /><br /><strong>Q:</strong> If you have offices in two states, can you use the office deduction for each? These are dedicated offices.<br /><br /><strong>A:</strong> Not at the same time; generally you are considered to have only one "home," usually the place where you are domiciled for tax purposes. However, if you use the two offices at different times (i.e. you spend the winter months in Florida and the summer months in the northeastern United States, as many people do), you may be able to claim the home office deduction for each office for that portion of the year where you are physically there. Just don't overlap. Also, keep in mind that if you do this, you will have "nexus" for sales tax (and possibly also income tax) in both states.<br /><br /><strong>Q:</strong> Is there free tax help for businesses? <br /><br /><strong>A:</strong> There are lots of online resources and information, but we are not aware of free tax help that's specific to an individual business. Your local SCORE chapter may be able to help you - some of their members are retired accountants who may be able to help you for free or for a very small charge. To find the SCORE chapter nearest you, <a href="http://www.score.org" target="_blank">click here</a>. Also, check out the <a href="http://www.irs.gov/Individuals/IRS-Free-Tax-Return-Preparation-Programs" target="_blank">IRS's Volunteer Income Tax Assistance (VITA) program</a>. Just remember, though, that "you get what you pay for."<br /><br />Laura Messerschmitt, Outright's VP of Marketing, and I will be reprising our webinars "live" at this year's Seller's Conference for Online Entrepreneurs (SCOE) May 30 to June 1, 2013 in Seattle, Washington. For details, go to www.scoe.biz.</p>
<p> </p>
<strong>Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">SucceedingInYourBusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em>, and 15 other books. COPYRIGHT 2013 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.<em><em> <br /></em></em>
Staff
2013-04-08T14:01:00Z
The 'Kirtsaeng' Case and the Future of 'Retail Arbitrage'
Staff
http://www.DrLaura.com/b/The-Kirtsaeng-Case-and-the-Future-of-Retail-Arbitrage/-221330204976935034.html
2013-04-01T07:04:00Z
2013-04-01T07:04:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com">SucceedingInYourBusiness.com</a></p>
<p><br />Last week, the U.S. Supreme Court handed down a much-anticipated ruling in the case of<em> Kirtsaeng v. Wiley Publishing</em>. The ruling will have a major impact on eBay, Amazon and other online merchants, but will have a particularly significant impact on the practice of "retail arbitrage" - buying something in a brick-and-mortar store at retail, and then reselling it online for an even higher retail price.<br /><br />Here's what happened.<br /><br />For many years, textbook publishers such as Wiley Publishing and McGraw-Hill have sold the same English-language college textbooks in foreign countries for lower prices than they do in the United States. Supap Kirtsaeng, a U.S. immigrant from Thailand, started an online business buying these "foreign editions" from retailers in Thailand and other Asian countries, importing them to the U.S., and then reselling them on eBay to U.S. students who were looking to pay less than the U.S. sticker price for the same books. These resales cut significantly into the profit margins of textbook publishers like Wiley, who sued.<br /><br />Copyright law in the U.S. has long held that once a company sells a copyrighted product, the purchaser has the right to resell it later. Kirtsaeng argued that this "first sale" rule, which allows the resale of U.S. products, should also protect the resale of foreign-made goods. The Supreme Court agreed with Kirtsaeng.<br /><br />Since the dawn of the Internet, manufacturers of high-margin goods have been trying to block resales of their merchandise on eBay, Amazon and other online retail sites. The <em>Kirtsaeng</em> case removes one of their biggest weapons - the argument that such resales somehow constitute "copyright infringement" or "trademark infringement," and that websites (such as eBay and Amazon) that facilitate such sales are therefore engaging in "contributory infringement" of the manufacturer's copyrights or trademarks.<br /><br />So is it safe to say that "resale arbitrage" - the buying of goods at retail and reselling them online at a higher retail price - is now officially legal?<br /><br />Not so fast . . .<br /><br />An important point in the<em> Kirtsaeng</em> case was the fact that Kirtsaeng's overseas textbook purchases were perfectly legal. A U.S. college student hitting the beaches on Phuket Island in Thailand over spring break could easily purchase a textbook there and bring it back to the U.S. without any hassle from the Customs Department.<br /><br />But what if the purchase violates other U.S. laws? Certainly the<em> Kirtsaeng</em> case would not allow an eBay or Amazon seller to buy goods overseas that turn out to be counterfeit, or which cannot be imported legally into the U.S.<br /><br />A more difficult case - and one I think we will be seeing lots of in the coming years - is the situation where a manufacturer prohibits its retailers from engaging in wholesale transactions at all. For example:<br /><br /></p>
<ul>
<li>What if a manufacturer's contract with a retailer specifically prohibits them from selling to eBay and Amazon merchants?</li>
<li>What if a manufacturer's contract with a retailer prohibits them from selling at wholesale, or to someone they have reason to believe has the intent to resell them at the time of purchase (e.g. someone buying five diamond bracelets from a jewelry store every week)?</li>
</ul>
<p><br />If you think such contracts don't exist, try going to your local McDonald's and asking to buy 100 Happy Meal toys promoting the new animated movie <em>The Croods</em> (perfect merchandise for an eBay seller) without actually buying 100 Happy Meals - see what happens. Even if you buy 100 Happy Meals, the store manager is bound to ask you some pointed questions.<br /><br />It is illegal for a manufacturer to prohibit a wholesaler or retailer from reselling their goods below a minimum price, or (in some cases) over a maximum price. This is called "resale price maintenance" and is prohibited by U.S. antitrust laws.<br /><br />But the antitrust laws are fuzzier when it comes to manufacturers prohibiting retailers from engaging in wholesale transactions at all, without regard to price. <br /><br />At one time (pre-1980), the Supreme Court took the position that "resale price maintenance" by manufacturers was "per se illegal" under the antitrust laws - they simply couldn't do it. Under more recent cases, however, the Court has softened its position and said that "resale price maintenance" cases are subject to a "rule of reason" - whether or not it is illegal depends upon the facts and circumstances of each individual case.<br /><br />So my personal prediction is that the<em> Kirtsaeng</em> case, while extremely favorable for online retailers, does not resolve once and for all the legality of "retail arbitrage." It merely shifts the legal arena from the field of trademark and copyright law - where the manufacturers' positions were weak anyway - to the field of antitrust and trade regulation law. A Supreme Court sympathetic to big business - especially if it can be shown that "retail arbitrage" activities are costing jobs and putting U.S. manufacturers at a disadvantage to foreign competitors - might be more sympathetic to big companies that want to keep their merchandise off of eBay and Amazon.</p>
<br /><strong>Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">SucceedingInYourBusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em>, and 15 other books. COPYRIGHT 2013 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.<em><em> <br /></em></em>
Staff
2013-04-01T07:04:00Z
When You're Sued in a Faraway Place
Staff
http://www.DrLaura.com/b/When-Youre-Sued-in-a-Faraway-Place/383793325116705894.html
2013-03-18T07:13:00Z
2013-03-18T07:13:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com">SucceedingInYourBusiness.com</a></p>
<p><em><br /></em></p>
<p><em>"I have a brick and mortar retail business in Pennsylvania. A couple of years ago, I started selling my merchandise online and have had a really great experience with that, until now.</em><br /><br /><em>Most of my online sales come through a third-party retailer. I send my stuff to their warehouse in California, and they fulfill all orders from my company website. It's a great deal - they take care of shipping, sales tax and other costs on each transaction and remit the balance to me each month.</em><br /><br /><em>Last month, however, I received a summons to appear in court in California. Apparently someone ordered a movie DVD on my website which turned out to be a counterfeit copy. They reported it to the movie producer, who is now suing me.</em><br /><br /><em>Now before I ship any merchandise, I always check carefully to make sure everything's genuine. When I told the warehouse company about the lawsuit, they told me that 'occasionally' they combine inventories from multiple sellers who are selling similar merchandise. What must have happened here is that they sent someone else's (counterfeit) DVD to the customer who ordered from my website. I told them never to do that anymore, and they said they wouldn't.</em><br /><br /><em>But I still have to deal with this lawsuit. There's a hearing scheduled in California in a couple of weeks. Should I plan to attend?"</em><br /><br />Four words for you: GET A LAWYER, NOW!!!<br /><br />Whenever you are served with lawsuit papers, even if it's in a faraway place, you should never just close your eyes and hope it will go away. It won't. You need to hire a California lawyer who specializes in counterfeiting cases; search online for "California lawyer counterfeiting" followed by the city and state in which the hearing will be held, and you probably will come up with a few law firm websites you can contact.<br /><br />First, you need to find out if this is a criminal case (where you will be hit with a fine) or a civil case (where you will be sued for damages). There's a big difference, which your lawyer will explain. A criminal conviction against your business will have big negative consequences for you, and you don't want to risk that happening "by default" if you don't show up. You are better off defending the suit as best you can.<br /><br />Hopefully the warehouse company will be able to trace the counterfeit DVD back to the company that originally shipped it to them (via barcode or sticker data). If they can, that should be enough to get you off the hook.<br /><br />If they can't, you will be fighting an uphill battle to prove to the California court that you weren't at fault here. California has some of the toughest anti-counterfeiting statutes in the country (because just about all of the major media companies are headquartered there), and they really play hardball with violators, even innocent ones like yourself.<br /><br />If this is a civil case (you are being sued for damages), you have a choice: you can hire a California lawyer to appear in the case, or you can decide not to attend the hearing, let the movie producer get a default judgment against you (which they probably will), and then wait for them to try to enforce their judgment against you in Pennsylvania.<br /><br />Under the "full faith and credit clause" of the federal Constitution, state courts are obligated to honor judgments that have been rendered in other states. But there's a big loophole for "default judgments" where the defendant doesn't show up. Many state court judges do not like to enforce "default judgments" from other states because an in-state resident (a taxpayer and voter) was denied his day in court. Instead, they will order a new trial. This will give you a chance to defend the case in Pennsylvania, on your home turf. Every sports fan knows about the "home court advantage," and it applies here as well.<br /><br />You should talk to a local lawyer in Pennsylvania about the likelihood of a local judge throwing out a California default judgment. If he feels it's worth the risk, you can then sit back and wait to see what happens.<br /><br />If you do make an appearance in the California case, however, and the judge out there rules against you, that will not be considered a "default judgment" - you have had your day in court, and a Pennsylvania judge will be duty-bound under the federal Constitution to honor that judgment.<br /><br />In any case, it sounds like you have one heck of a case against the warehouse company that messed up here, especially if you can prove that all merchandise shipped to them was 100 percent genuine when it left your company. Whether you talk to a California or a Pennsylvania lawyer, you should ask him or her about "impleading" the warehouse company (bringing them in as a co-defendant) in the lawsuit. And maybe also the seller of the counterfeit DVD.</p>
<br /><em> </em><strong>Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">SucceedingInYourBusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em>, and 15 other books. COPYRIGHT 2013 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.<em><em> <br /></em></em>
Staff
2013-03-18T07:13:00Z
Your Clients Don't Have Money: Should You Lower Your Fees?
Staff
http://www.DrLaura.com/b/Your-Clients-Dont-Have-Money:-Should-You-Lower-Your-Fees/551115632745113324.html
2013-02-25T08:03:00Z
2013-02-25T08:03:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com">www.succeedinginyourbusiness.com</a></p>
<p><em>"I work in a service business where I bill by the hour.</em><br /><br /><em>Because I work out of my home and have no overhead, my fees are pretty reasonable. I try to price my services at about 80 percent of what my closest competitors charge, and have had little trouble finding business at that level.</em><br /><br /><em>Recently, I've been having problems. My customers are telling me my fees are too high, and they are either performing this service themselves or foregoing having it done. Even worse, some of them are using my fees as leverage to negotiate even lower fees from my competitors. Some of my competitors are giving in and giving them what they want.</em><br /><br /><em>I realize times are tough and people are squeezing their pennies so hard you can see through them. But if I cut my fees any lower than they are, I may have trouble paying my bills. Is there anything I can do to turn the situation around?"</em><br /><br />It used to be that you could justify your fees by citing your expertise or experience. Whenever someone asked me why I charge $500 for forming a limited liability company (LLC) when it took me only about an hour to do the paperwork, I used to reply, "Well, it's taken me 30 years to learn how to put together an LLC in one hour."<br /><br />No more. People want the expertise, but they won't pay extra for it.<br /><br />These days, I have to contend with online incorporation websites such as <a href="http://www.legalzoom.com" target="_blank">legalzoom.com</a> that charge only a fraction of what attorneys charge for forming LLCs. Even worse, there is a large and growing surplus of unemployed young attorneys fresh out of law school who are desperate for work and will charge whatever the client is willing to pay.<br /><br />Just yesterday, a client called me asking for my help in reviewing a set of documents for a franchise he was thinking of buying. Generally, I charge a $1,500 flat fee for this service, reflecting the five or six hours of time it normally takes me to review the documents, research the franchise online, prepare a memo to the client explaining the pitfalls, explain those pitfalls to the client, and negotiate an addendum or "clarification letter" with the franchise and its legal counsel.<br /><br />When I quoted my fee and explained why I needed to charge what I charge, there was dead silence on the phone for a few seconds until the client said, "I only have $250 in my budget for legal services. What will that buy me?"<br /><br />For a split second, I thought about laughing in this guy's face, hanging up the phone on him, or screaming at him about the amount of work involved in a project like this and the liability we attorneys have whenever we do less than perfect work. A year ago, I might have done just that.<br /><br />Not yesterday.<br /><br />After asking the client some questions to make sure he wasn't just bluffing, I told him that for $250 I would give him one hour on the phone and answer any questions he and his wife had about the franchise documents. I told him there would be no thorough review of the documents and that I would ask him to sign a letter saying that my obligation to him as a lawyer was limited to that one-hour phone call.<br /><br />He gratefully accepted my offer, and of course, I actually ended up giving him slightly more than one hour on the phone.<br /><br />So, how do you make sure you're getting paid what you're worth? Here are some ideas:<br /><br />First, consider giving your clients a "menu" of options with fees attached, such as, "For X dollars, you get this, but for an additional Y dollars, you get the following extras." Real estate brokers have been playing this game for years: you tell them you cannot spend more than X dollars, they show you a bunch of junky houses in that price range, but then they show you some really nice houses that are just a few thousand dollars more than the limit you told them. When people see what they are not getting by "splitting pennies," some of them - the ones you want - will migrate to your higher fee structure.<br /><br />Just be sure you clarify in writing the limited service your client is getting because clients have a nasty habit of forgetting the details once the work is done.<br /><br />Second, consider going "high end" with your service and pitch to only those clients you know can afford to pay a reasonable fee. Just be aware that all your higher-priced competitors will be pitching to the same few people.<br /><br />Lastly, if all else fails, add new services that people will pay any amount of money to have done for them, no questions asked. People won't pay top dollar for an LLC, but if they need help fending off an IRS investigation . . . ?<br /><a href="http://www.succeedinginyourbusiness.com"></a><em> </em></p>
<strong>Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em>, and 15 other books. COPYRIGHT 2013 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.<em><em> <br /></em></em>
Staff
2013-02-25T08:03:00Z
What Legal Documents Do You Need if You Are Selling Something on Social Media and Don't Have Your Own Website?
Staff
http://www.DrLaura.com/b/What-Legal-Documents-Do-You-Need-if-You-Are-Selling-Something-on-Social-Media-and-Dont-Have-Your-Own-Website/662874716405147523.html
2013-02-11T15:00:00Z
2013-02-11T15:00:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com">www.succeedinginyourbusiness.com</a><em></em></p>
<p>This week's emails demonstrate just how far social media has come in only a couple of years:<br /><br /><em>"Some friends and I have created a mobile phone application, or 'app,' that will help people find local bars and restaurants.</em><br /><br /><em>I realize most mobile phone apps are tied to a website, but we're not planning to do that. For a while at least, this will be a stand-alone app. Once we're convinced that there's a market for this app, then we'll set up a website.</em><br /><br /><em>For now, what sort of legal documents do we need just to sell the app on Apple's App Store?"</em><br /><br />Up until recently, most creators of mobile phone "apps" used them as a marketing tool to direct users to a website where the creators were offering goods or services (that's why, at least in the beginning, the creators would offer the app for free or for a small amount under $1).<br /><br />But as the above email indicates, things have gotten a bit more complicated since then. With more than 700,000 apps for the iPhone alone available on Apple, Inc.'s App Store, the field is extremely crowded and it's getting tougher and tougher for a new app to stand out. Many new app creators are "testing the waters" by offering their apps for free and then building a website later once the app has proven itself in the marketplace.<br /><br />A wise decision, perhaps, but how does such a creator protect itself legally?<br /><br />Let's begin with the basics. A mobile phone "app" is basically a software tool that allows users to do something cool on their mobile phones. As such, the app is "software," and is licensed to the user, not sold. At the very least, an app creator needs a "license agreement" or "user's agreement" making it clear that:<br /><br /></p>
<ul>
<li>the creator owns all intellectual property rights to the app;</li>
</ul>
<ul>
<li>users have only a license (although a fully paid-up one), not ownership, when they download the app from the iTunes store; and</li>
</ul>
<ul>
<li>users are not allowed to reverse engineer, copy, or do anything with the app that might infringe on the creator's ownership and intellectual property rights.</li>
</ul>
<p><br />Once the app has been downloaded and users start using it, the creator will also need some basic disclaimers in case bad things happen. For this particular app, I would recommend, among others:<br /><br /></p>
<ul>
<li>a disclaimer limiting the developer's liability for any malfunction to a small amount (for example, $1 or the cost of the app if greater);</li>
</ul>
<ul>
<li>a warning that users must be of legal drinking age (21 in virtually all states) to order alcoholic beverages using the app, and must be legally able to enter into binding contracts if they are using the apps to make restaurant reservations; and</li>
</ul>
<ul>
<li>a statement that the app creator cannot guarantee the user will have a positive experience with any bar or restaurant they find through the app.</li>
</ul>
<p><br />I also strongly recommend a privacy policy if the app creator is collecting user information from people who use the app. Call an attorney, or look at apps in the "food and beverages" section of Apple's App Store to see what other app developers are using.<br /><br />"I have just set up a Facebook page to launch a new business selling a certain type of service to people. I'm not planning to set up a separate website for the business, at least not yet. My services will be offered exclusively on Facebook, where people can sign up for specific 'bundles' of services and pay by credit card directly from the Facebook page.<br /><br />Facebook has its own user's agreement and privacy policy, so do I really need my own versions of these?"<br /><br />The short answer is "yes." Whenever you are selling goods or services online using a "shopping cart" that enables customers to pay by credit card, virtually all carts will allow you to include a "dialog box" as part of the checkout process, by which a customer must "accept" your terms and conditions if they wish to proceed with their purchase. Take advantage of that feature.<br /><br />Your "dialog box" should give the customer the option of "accepting" or "rejecting" your terms. I would also recommend that you include a feature requiring the customer to scroll through your terms and conditions to the very bottom of the document before being given the opportunity to "accept" or "decline" them. <br /><br />As soon as you can, set up your own website and stock it with inventory that is not available on Facebook or any other social media site. Social media is a great way to build a customer base, but ultimately you want to be selling stuff from a website you own and control. That website will still be the only place on the entire Internet where you can sell stuff and keep 100 percent of the money you make.</p>
<strong>Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em>, and 15 other books. COPYRIGHT 2013 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.<em><em> <br /></em></em>
Staff
2013-02-11T15:00:00Z
Dealing With Commission Payments
Staff
http://www.DrLaura.com/b/Dealing-With-Commission-Payments/543609941026375198.html
2013-02-04T08:08:00Z
2013-02-04T08:08:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com">www.succeedinginyourbusiness.com</a><br /><br /><em>"After being laid off from a company last year, I've started my own consulting business. Things have been going pretty smoothly, at least until now.</em><br /><br /><em>I struck an agreement with a local company to perform services for its clients. They are willing to pay me by the hour, plus a commission. When I received their consulting agreement, however, there was no reference to a specific commission - just a statement that I would be paid a commission 'in the company's sole discretion' if they were satisfied with my work.</em><br /><br /><em>I'm happy with the hourly fee, but I would like to get some assurance from this company that I will indeed receive a commission if I give them stellar performance. What's the best way to approach this with them?"</em><br /><br />Whenever a company says they will pay something "in their sole discretion," what that means is "I will pay it when I can, and then only if I feel like it." You are right that this agreement does not obligate the company to pay you anything over your base hourly rate.<br /><br />While a commission can be a flat amount, more commonly it is a percentage of something. You need to think about what that something is. Then, offer the company a menu of choices you can live with.<br /><br />Consulting commissions are paid either on the gross revenue a company receives from a client or customer, or the net profits from a job or contract. I'm not wild about commissions based on "net profits" because there are too many ways a company can fool around with its figures to deny you a commission you earned legitimately. For example, the company could add a portion of its "overhead" or "administrative expenses" to the cost of doing a job in addition to the direct costs it incurred in getting the job done, thereby reducing "net profits" and your commission.<br /><br />Consulting commissions should, in my opinion, always be based on gross revenue. Sales are sales - either a company sold something or it didn't. The only way your client can monkey around with the figures is to commit fraud, and you can nail the company on that when you review their books (more on that later).<br /><br />To make your client more comfortable with a commission based on gross revenue, you can stipulate that the company must "actually receive" the revenue before your commission accrues. That way the company won't be in the position of having to pay you a commission without having received payment from its customer or client - truly, a "monkey in the middle" situation most companies want to avoid at all costs.<br /><br />Basing your commission on gross revenue will also eliminate the need for the company to use "its sole discretion" in determining whether or not you get paid.<br /><br />It would not be appropriate for you to base your commission on the company's entire worldwide sales - your commission should apply only to revenue you helped the company generate. Here are some suggestions:<br /><br /></p>
<ul>
<li>if you introduce a new client to the company, you should receive a commission on all revenue the company actually receives from that new client, whether or not you actually perform services for that client;<br /><br /></li>
<li>if the company hands off a client to you and you perform virtually all services for that client without the company's assistance, you should receive a commission on all that revenue as well;</li>
</ul>
<ul>
<li>if you perform services for one of the company's clients, and the company's personnel assists you in performing those services, then it's appropriate to say the company will pay you a commission if, "in the company's reasonable judgment," your work added significant value to the team effort.</li>
</ul>
<p><br />Next, you should think about when the commission is payable. Most consulting commissions are paid monthly, quarterly, or semiannually. Your agreement should clearly state that commissions are payable within 30, 45, or 60 days, respectively, after the monthly, quarterly, or semiannual period in which the company receives revenue from its client for your services.<br /><br />Next, what happens if the contract expires or terminates? Unless the company is required to continue paying commissions on work you did before the contract ends, all payments will stop on that date. The agreement needs to state clearly that upon termination you will continue to receive commissions on (1) all work you performed for the company's clients up to and including the termination date, and (2) with respect to new clients you introduced to the company, all revenue the company receives from those clients as long as their contracts with the company remain in effect, "together with all renewals and extensions thereof."<br /><br />Finally, when receiving consulting commissions you should always add a clause giving you the right to review the company's books and records, "upon reasonable advance notice and not more frequently than once each year," to make sure the company hasn't been underreporting sales or otherwise playing games with your commission payments.</p>
<strong><br />Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em>, and 15 other books. COPYRIGHT 2013 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.<em><em> <br /></em></em>
Staff
2013-02-04T08:08:00Z
A Primer on Convertible Debt
Staff
http://www.DrLaura.com/b/A-Primer-on-Convertible-Debt/429201433010689606.html
2013-01-28T16:44:00Z
2013-01-28T16:44:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com">www.succeedinginyourbusiness.com</a><br /><br /><em>"I have a successful growing business, to the point where a number of investors are starting to knock on my door.<br /><br />My business is in a limited liability company (LLC), with two classes of membership interest - voting and nonvoting. I did this on the advice of my lawyer and my accountant, who both suggested it was useful to distinguish between the founders of the company (who, of course, get voting interests) and investors (who get nonvoting interests).<br /><br />I have approached a number of investors (actually, they have approached me), and offered them nonvoting interests for a significant percentage of the company, but they are dragging their feet because they see my company as still too risky.<br /><br />I really don't want them to lend money to my company because I don't want long-term debt on my books, and I don't want to give up control of the company by giving them voting interests. I could just blow them off, of course, but truth be told, I could really use at least some of the money they're throwing at me to expand my business.<br /><br />Is there any way I can make these investors happy and still keep control of my business?"<em><br /><br /></em></em>Yes - you should consider offering them convertible debt.<br /><br />A convertible note is basically an I.O.U. from a company to an investor. It operates the same way as any other debt instrument, except there's a provision in the note giving the "holder" (that's the investor) the right at any time to convert the note into a specified voting or nonvoting interest in your company.<br /><br />By giving an investor a convertible note, you are enabling them to "straddle the fence." If your company takes off and becomes wildly successful, the investor will convert the note into equity so he or she can grow along with you. If your company goes belly-up, the investor can hold on to the note so that, as a creditor, he or she will get their money out before others do.<br /><br />Here are the terms you and your advisors will need to work out:<br /><br /><strong>The Conversion Price.</strong> This is the ratio of the note's principal balance to the number of shares received upon conversion - for example, "1 percent of the company's nonvoting membership interests for each $10,000 of the outstanding principal balance of the note at the time of conversion." You should also consider whether investors will be allowed to convert their note "in whole" (all at once), or partially in several installments over time. <br /><br /><strong>Timing.</strong> Most convertible notes give the investor the right to convert "at any time," but you are free to add language saying the investor only gets the right to convert at a stated future time.<br /><br /><strong>Forced Conversion. </strong> The investor always has the right to convert, but you may want the right to "force" the investor to convert earlier than he or she might wish. A future investor desiring to put a large sum of money into your company may insist that all holders of company debt be converted into equity. Without the right to force conversion, you would be forced to renegotiate each investor's note, and even a single "no" could force you to forego a big investment you may desperately need at that time.<br /><br /><strong>What the Investor Gets Upon Conversion.</strong> With a corporation, this is simple - the investor receives shares of the corporation's common or preferred stock. <br /><br />With an LLC, you have two choices:<br /> <br />You can specify that the investor will receive a percentage of the company upon conversion - this means that any investor who comes on board before conversion will be "diluted" (their percentage ownership of the company will be reduced) when the conversion takes place; or<br /><br />You can provide that the investor will receive a number of "units of membership interest" (similar to shares of stock in a corporation) upon conversion - this means that the investor will be "diluted" by other people who make investments in your company before conversion takes place. You may have to amend your LLC Operating Agreement if it does not currently provide for "units."<br /><br /><strong>Other Documents.</strong> Because a convertible note is generally considered a "security," you will need to prepare the following in addition to the convertible note itself:<br /><br /></p>
<ul>
<li>a "subscription agreement" by which investors agree to "purchase" their notes;</li>
</ul>
<ul>
<li>an "investor questionnaire" so your lawyer can determine if the investor is "accredited" for purposes of federal and state securities laws; and</li>
</ul>
<ul>
<li>your LLC Operating Agreement - the investor does not sign this now (only upon conversion), but needs to review it now so he or she understands their rights and duties as a future LLC member when they convert.</li>
</ul>
<p><br />It is important that the subscription agreement contains a clause requiring the investor to sign the LLC Operating Agreement he or she received as part of their investment package, "as the same may be amended or supplemented from time to time," when the note is converted. Otherwise, you may not have the ability to change your company's Operating Agreement without his or her consent.</p>
<strong><br />Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em>, and 15 other books. COPYRIGHT 2013 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.<em><em> <br /></em></em>
Staff
2013-01-28T16:44:00Z
To Skype or Not to Skype?: That Is the Question
Staff
http://www.DrLaura.com/b/To-Skype-or-Not-to-Skype:-That-Is-the-Question/179226480492256420.html
2013-01-21T08:03:00Z
2013-01-21T08:03:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a></p>
<blockquote><em>"I am a licensed psychiatrist and relationship counselor. For the past few years, I have been a successful blogger on the topic of dating, specifically online dating strategies for people over the age of 40.</em><br /><br /><em>I have a fairly sizable following on social media, and want to start a series of online webinars using Skype®, the popular wireless telecommunications platform. Basically, people would register for a webinar on my website, be given an access code, and dial in to the Skype® communication at the appropriate time. It will be just like a telephone conference call, except that attendees can see me, what I'm writing on the whiteboard, and so forth. Eventually, I plan to sell advertising for these webinars.</em><br /><br /><em>My only problem is naming the webinar series. Since childhood everyone has called me 'Spike.' So I thought about calling my webinar series 'Skype with Spike.' It's easy to remember (although a bit of a tongue-twister), and all of the relevant website URLs are available.</em><br /><br /><em>My lawyer isn't crazy about this idea. He says the Skype® people won't like me using this name online. I can't for the life of me think of a reason why Skype® would object. I plan to state clearly at the beginning of each webinar that I'm not affiliated with Skype®, and that my opinions are my own. If anything, I would think Skype® would like this program as it helps to promote their brand. Also, everyone nowadays says they're going to 'Skype someone' when they're planning to do an Internet telephone call, whether or not they are actually using the Skype® service.</em><br /><br /><em>What do you think? It's too good an idea to pass up, but the name has to be catchy or this webinar series won't get off the ground."</em><br /></blockquote>
Boy, how far we've come in such a short time. Remember when you had to actually go to a physical location in order to attend a seminar?<br /><br />This email falls into the category of "something you really should be able to do because it doesn't really harm anybody, but you can't do it because our behind-the-times legal system hasn't caught up to today's technology."<br /><br />Let me explain.<br /><br />If someone has registered a name with the federal government as a trademark, you can't use it for the same or a similar category of products or services. That is called "trademark infringement," and you can get sued for that, especially if the trademark owner is a large corporation with billions of dollars to spend on lawsuits.<br /><br />What you are proposing to do is not technically "trademark infringement," because you are not claiming to be affiliated with Skype® - on the contrary, you are disclaiming any affiliation with that company. So far, so good.<br /><br />But there's another way Skype® can come after you in court if they don't like what you are doing. It's called "trademark dilution," which gives the owner of a famous trademark (and Skype® would certainly qualify, precisely because its name is becoming a commonly used English verb) the power to prevent someone from using the trademark in such a way as to lessen its uniqueness. <br /><br />It doesn't matter what you are doing. Although selling products and services that are totally different from Skype®'s may prevent you from being sued for trademark infringement, that is no barrier to a "trademark dilution" lawsuit.<br /><br />The reason is that using a famous trademark for any product or service is highly likely to confuse the marketplace because the famous mark, being so well known among the consuming public, will make people assume that you are affiliated with the owner of the mark regardless of the product or service being sold. While the idea of Skype® launching an underwear brand is pretty far-fetched, it is not inconceivable that Skype® may want to launch its own webinar series someday, and people will naturally think your webinars are part of that series because you use their name.<br /><br />The fact that "to Skype someone" is becoming part of everyday English may be a defense if Skype® launches a trademark dilution suit against you, but unless you have the resources to fight a multibillion dollar company in federal court, I would just pick another name for your series. There are consulting firms (known as "brand name consultants" or "product name consultants") who can help you find the right name for your webinar series. They will even help you trademark it so no one can "infringe" or "dilute" that name without your permission. To find these folks, check out <a title="Brand Institute, INC." href="http://www.brandinstitute.com" target="_blank">www.brandinstitute.com</a>, <a title="Name Stormers" href="http://www.namestormers.com" target="_blank">www.namestormers.com</a>, and <a title="Name Base" href="http://www.namebase.com" target="_blank">www.namebase.com.</a><br /><br />If you really think "Skype with Spike" is the only possible name, then email Skype® and ask for permission (maybe offering them some free advertising on your webinars). But don't hold your breath that they will say "yes."<br /><br />I would also stay away from "Google with George," "eHarmony with Henry," and (ahem) "Succeeding in Your Business with Cliff."<br /><strong><br /><br />Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em>, and 15 other books. COPYRIGHT 2013 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com. <br />
Staff
2013-01-21T08:03:00Z
Can You Bring Criminal Charges Against Someone Who Owes You Money?
Staff
http://www.DrLaura.com/b/Can-You-Bring-Criminal-Charges-Against-Someone-Who-Owes-You-Money/-661171037991180518.html
2013-01-14T15:02:00Z
2013-01-14T15:02:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a></p>
<blockquote><em>"I've got someone who owes my business money. I've made several efforts to negotiate with this person, but it turns out that he's 'judgment proof' - he has no assets in his personal name.</em><br /><br /><em>I know I could just walk away and write this off on my taxes, but I really don't want to do that. To be frank, I want to punish this person. He knew when he signed up for my services that he wasn't going to pay my bills, and in my opinion, that's theft.</em><br /><br /><em>Can I bring a criminal action against this person? If I can't, are there any other nasty things I can do to let the world know that this person is a crook that no one should deal with?"</em></blockquote>
When you run your own business, nothing - and I mean nothing - gets under your skin like a customer who takes your goods and services and then refuses to pay for them. <br /><br />Just about every state has a law making "theft of services" a criminal offense. The definition of "theft of services" varies from state to state, but usually includes:<br />
<ul>
<li>absconding without paying for hotel, restaurant, gas, or other services for which compensation is paid immediately;</li>
<li>knowingly securing the performance of a service by deception or threat</li>
<li>diverting another's services to the actor's own benefit; </li>
<li>knowingly writing a bad check; and</li>
<li>holding onto rented property beyond the rental period.</li>
</ul>
For the charge to stick, though, you usually have to prove that the person "intended" not to pay. You may be able to prove "intent" if the person signed a written contract, you have made proper demand for payment, and the deadbeat did not have sufficient funds in his bank account to pay the bill at the time he signed your contract. It will take time, however, let alone the legal fees you may have to incur if your local prosecutor decides that your case isn't worth pursuing at taxpayers' expense.<br /><br />You should also keep in mind that if you file criminal charges against someone for "theft of services" and the person has a legitimate defense - for example, they were not happy with your work or they just lost their job, which rendered them unable to pay as they thought they would when signing your contract - you may be opening yourself up to a criminal charge of "malicious prosecution" (bringing a criminal case without probable cause). <br /><br />To make sure your criminal charge won't backfire, talk to someone in your local prosecutor's office or police department.<br /><br />When dealing with a deadbeat, you need to keep your emotions under control and remember that "revenge is a dish best served cold." Here are some other ways you can get justice:<br /><br /><strong>Notify His Credit Bureau </strong><em><strong><br /></strong></em> Contact the three major credit reporting agencies (Experian, Equifax and TransUnion) and report your claim. For instructions, <a href="http://www.experian.com/consumer-information/reporting-to-credit-agencies.html" target="_blank">click here.</a> <br /><br /><strong>"Flame" Him Online</strong> <br />Go to the <a href="http://www.bbb.com/" target="_blank">Better Business Bureau</a>, <a href="http://www.yelp.com/" target="_blank">Yelp</a>, <a href="http://www.craiglist.com/" target="_blank">Craigslist</a>, and other online review sites and post a short description of what happened. Be sure to stick closely to the facts - if you don't, you may be opening yourself up to a lawsuit for libel or slander. Also, keep your anger at bay: an online posting that is too emotional makes you look like a crazy person and won't be taken seriously.<br /><br /><strong>Sue Him Anyway</strong><br />Bring a small claims court action in the county where the deadbeat lives. Get a judgment, and then write up a press release and send it to every newspaper within 100 miles of the deadbeat's home or place of business. You may also get an "execution" from the court which might - might - allow you to garnish the deadbeat's wages, put a lien on his house, and otherwise make his life miserable.<br /><br /><strong>Put a Mechanic's Lien on His Property</strong><br />If you are a contractor and did work on the deadbeat's home, you may be able to put a "mechanic's lien" on his house which will have to be removed when he sells the property or refinances his mortgage. Talk to a lawyer first though - most states have restrictions on your ability to file a lien, including (in many states) a very, very short statute of limitations.<br /><br /><strong>File an Involuntary Bankruptcy Petition</strong><br />If the deadbeat is a business that owes you more than $14,425 and doesn't dispute your claim, you may be able to force it into bankruptcy by filing an "involuntary bankruptcy petition." <br /><br /><strong>Call His Relatives</strong><br />Don't be afraid to contact the deadbeat's spouse, ex-spouse and other adult relatives. Especially if the deadbeat is under the age of 30, a call to the deadbeat's parents telling them that you plan to file "theft of services" charges against their child is very likely to generate a quick response. Again, be sure to stick closely to the facts, and remember that a deadbeat's relatives are not legally required to pay your debt unless they personally guarantee it in writing.<br /><strong><br /><br />Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em> and 15 other books. COPYRIGHT 2013 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.
Staff
2013-01-14T15:02:00Z
The Six "C'S" That Should Be in Every Business Plan
Staff
http://www.DrLaura.com/b/The-Six-CS-That-Should-Be-in-Every-Business-Plan/624867257349083650.html
2012-12-10T15:01:00Z
2012-12-10T15:01:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a></p>
There are at least 1,000 books in print telling people how to write a business plan. The problem with most of them is: they're wrong. Or at least they're not practical for the vast majority of business start-ups.<br /><br />Unless you are a high technology start-up looking for venture capital, you do not need a 50-page book with dividers and index tabs to start a business.<br /><br />You do, however, need a business plan. As a frequent judge in business plan competitions around the country and as an adviser to "angels" and other professional investors, I review hundreds of business plans a year. Most are terrible.<br /><br />So how do you catch the attention of someone like me when writing a business plan? There are six things I look for in a business plan, each of which conveniently begins with the letter "C": <br /><br /><em><strong>Concept</strong></em> <br />You must be able to communicate your business idea in a single paragraph (two at the most) "executive summary". This is the first thing I look for when reviewing a business plan. If I don't buy the concept, I don't even look at the rest of the business plan. So make it perfect.<br /><br /><em><strong>Customers</strong></em><br />I want to know that people will actually buy what you are selling. Who are the customers you are targeting with your products or services? What are their fears (the things that keep them awake at night) and passions (the things that "turn them on")? How do your products or services address those fears and passions? <br /><br /><em><strong>Competition<br /></strong></em>A business plan that says, "We have no competition; our product or service is unique," goes immediately into the trash can. Every business has competition. If you're convinced that yours doesn't, you haven't looked hard enough.<br /><br />If your product or service is too expensive for the market, what other products and services can people buy to help deal with the same fears and passions? Are there any "big box" retailers, chain stores, or franchises out there that could get into your marketplace and wipe you out with their economies of scale? Are there any new technologies that could make your products or services obsolete?<br /><br />When reading your business plan, I want you to be realistic about your competitors. I want you to identify them, convince me that you have a compelling advantage over them, and tell me how you plan to crush them under your boot heels.<br /><br /><strong><em>Cash Flow</em><br /></strong>Too many entrepreneurs spend too much time projecting profit margins in their business plans. That's important, of course, but what's twice as important - especially for a start-up or early stage business - is cash flow: will there be enough money in your business checking account at the end of each month to pay your operating expenses the next month?<br /><br />Sooner or later, a successful business reaches a point at which revenues from operations are sufficient to cover the monthly operating costs of the business - that's called the "break-even point". How long is it going to take your business to get there? <br /><br />If you have "broken even" already, or plan to do so very soon, it will actually be quite easy to convince people to invest in your business and help it grow. But if you are looking for money to pay the electric bill each month, you are not ready to present your business plan to investors. <br /><br />Don't tell me what you "hope" will happen, or what is "going" to happen. Tell me what's happening or what has already happened, and make me feel that this rocket ship is leaving the launch pad. <br /><br /><strong><em>Credibility</em></strong><br />I will look at your management team's resumes very closely to make sure you have the "know-how" to make this business plan happen. I want to see people who know your technology cold and can adapt quickly to market demands. I want to see people who know your customers so well that they can crawl inside their heads and make 100 percent sure sales will happen. I want to see people with operations and financial experience who can help the business "break even" as soon as possible. I want to see people with experience in the industry.<br /><br />I will also be looking for seasoned entrepreneurs, so don't try to impress me with your "Fortune 100" credentials. Thirty years of running a large company with an established business model and tons of cash is no qualification for running a start-up.<br /><br /><em><strong>Caution</strong></em><br />I want you to warn me about the risks involved in the business, and explain your strategy for managing them. I want to see you working with good lawyers, accountants and insurance professionals. If you are a one-person business, I want to see a "succession plan" to ensure the business will survive your death or disability. <br /><br />I look for all these things because if I bring an investor to the table and things go wrong down the road, his money will be gone. He will blame me, and you do not want to know what I will do to you.<br />
<p><strong>Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em> and 15 other books. COPYRIGHT 2012 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.</p>
Staff
2012-12-10T15:01:00Z
A New Voice for Rural Small Business Owners
Staff
http://www.DrLaura.com/b/A-New-Voice-for-Rural-Small-Business-Owners/410149343342104723.html
2012-12-03T15:01:00Z
2012-12-03T15:01:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a></p>
Hays, Kansas is a really cool little town.<br /><br />Nestled on the High Plains of northwestern Kansas, where there's always a steady breeze and when the corn is harvested you can see clear to the horizon, Hays is the home of Fort Hays State University (go Tigers!) and has a population of about 20,000.<br /><br />It is also home to literally hundreds of mom-and-pop small businesses - the kind you don't see anymore on your local commercial strip if you live in a large city or suburban area.<br /><br />There's Thirsty's Grill & Pub (hey, it's a college town), offering the "best steaks in Hays".<br /><br />There's the Whisky River Wood Fire Grill and Professor's Steakhouse and Saloon, both of which would challenge Thirsty's claims to the best steaks in Hays (I can personally say that the chicken-fried steak I had at Whisky River was probably the best I've had since I was a law student down South).<br /><br />There are two family-owned Mexican restaurants and even - wait for it - Napoli's, an Italian trattoria (and for all of you snobs who think Chef Boyardee is the Midwest's idea of Italian cuisine, the lasagna was terrific).<br /><br />It also boasts the Sternberg Museum of Natural History (lots of cool dinosaur stuff), although I was disappointed to learn that they just recently shut down the Gopher Museum, a living habitat where you could watch these cute furry little creatures in their burrows doing, well, whatever gophers do. You know it's a tough economy when gophers are being downsized.<br /><br />Driving up and down Vine Street and 27th Street, the two major commercial crossroads in Hays, you see dozens of small, family-owned businesses lining the streets, with hardly any big-box retail outlets or chain stores.<br /><br />I had the privilege of visiting Hays last week as a speaker in the annual Kansas Jubilee, a celebration of small business throughout the Sunflower State. Hosted by Joyce Banbury, an octogenarian fireball (the debate over dinner was whether she more closely resembled Auntie Em from <em>The Wizard of Oz</em> or Aunt Bee from <em>The Andy Griffith Show</em>), this annual event features state-of-the-art presentations about eBay, Amazon, and other Silicon Valley companies that target the small business market. Now in its third year, the event attracted a couple hundred folks from five Midwestern states.<br /><br />But something else is brewing in Hays these days that will put the Hefeweizen at Thirsty's to shame.<br /><br />At the Kansas Jubilee, Ms. Banbury announced the formation of a new online venture designed to help rural small business owners like the ones in Hays reach an increasingly global retail marketplace.<br /><br />It's called "Yabie" (pronounced "YAH-bee"), and the name stands for "You and Business in e-Commerce".<br /><br />"There's so much information about e-commerce out there these days, and many small business owners, especially in rural areas, are just overwhelmed by it all," says Banbury, who defines a "rural small business" as any small business located in an area that's more than a one-hour drive from a metropolitan area or shopping mall.<br /><br />When it is launched in early 2013, Yabie will be an online resource, education, networking and community website for rural small business owners - the first one I'm aware of. Yabie's goal is to engage people in a learning process which will give them the tools, information and assistance needed to create businesses and income streams, and allow them to market from any region, town or small city as successfully as they would in urban areas. <br /><br />"Rural areas have special challenges in accessing, understanding and utilizing the potential of the World Wide Web," Banbury says, explaining that the brick and mortar family-owned businesses that dominate rural America have traditionally viewed e-commerce as a threat: "They don't realize that e-commerce gives them the opportunity to expand beyond a small local or regional market and promote their merchandise worldwide."<br /><br />Yabie, currently an unincorporated nonprofit association, has partnered with the Kansas e-Commerce Center, part of the Kansas Small Business Development Center (SBDC) in Phillipsburg, Kansas, to provide both live in-person tutorials and online webinars from the nation's leading e-commerce experts, and has received significant support from both the Kansas Department of Economic Development and the Kansas Board of Regents.<br /><br />There are also plans to host live events for rural small business owners throughout Kansas, including the Kansas Jubilee in Hays. "The long-term goal is to create a template that other states with large rural populations can duplicate," says Banbury, who points out that virtually every state in America has significantly large rural areas whose merchants are not being reached by traditional small business education and support programs.<br /><br />A social media website is currently under construction at <a href="http://www.yabiecentral.com/" target="_blank">www.yabiecentral.com</a>, and it's expected to be launched in early 2013. More information about Yabie can be found at <a href="http://www.kansasjubilee.net/" target="_blank">www.kansasjubilee.net</a>, and anyone interested in the future of rural small businesses needs to know more about Joyce Banbury and the lifetime she has devoted to this cause. She can be reached at danse24@gmail.com.<br /><br />And, if you know of any open positions for gophers with show-business experience...<br /><br />
<p><strong>Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em> and 15 other books. COPYRIGHT 2012 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.</p>
Staff
2012-12-03T15:01:00Z
Five Techniques to Keep Your Business from Being Sued - Part II
Staff
http://www.DrLaura.com/b/Five-Techniques-to-Keep-Your-Business-from-Being-Sued---Part-II/-859798192118557237.html
2012-11-26T15:01:00Z
2012-11-26T15:01:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a></p>
Without a doubt, hands down, the most common question I get from new clients is: "Hey Cliff, I'm thinking of starting a business, but I'm afraid that if I make a mistake, someone is going to sue me, I will lose my house, and my spouse will divorce me and take the kids. How can I keep from getting sued when I run my own business?"<br /><br />I discussed two ways that you can keep your risk of lawsuits at a minimum in <a href="/b/Five-Techniques-to-Keep-Your-Business-from-Being-Sued---Part-I/279361528478635291.html" target="_blank">part one</a> of this article. Here are three more:<br /><br /><strong>(3) Put "Disclaimer" Language in All Your Contracts and Business Correspondence </strong><br /><br />Every document your suppliers, customers and clients sign is a legal contract. Even some they don't sign are legal contracts as well. Make sure all contracts contain "disclaimer" language.<br /><br />There are two types of legal disclaimers: "warranty disclaimers" and "limitations of liability".<br /><br />Whenever you sell something or perform a service for somebody, you make certain warranties about the quality of your work, which will be legally binding if you don't disclaim them. Even if you don't make any warranties about your work, the law will impose "implied warranties" enabling someone to sue you if they are not disclaimed.<br /><br />Your disclaimer should clearly state that "except as expressly stated in this contract, the undersigned makes no warranty, express or implied, about the products supplied, the performance of services or any other matter." The disclaimer should be in boldface type clearly visible to the reader - burying the disclaimer in the contract's "fine print" won't help you.<br /><br />A "limitation of liability" disclaimer says that even if you do make a serious mistake, all you have to do is give the client his or her money back, and you're off the hook. He or she can't sue you for anything else. <br /><br />Make sure your "limitation of liability" prevents you from being sued for "consequential and incidental damages." These are "ripple effect" damages caused by your mistakes. So, for example, let's say you design and sew a dress for a client in the entertainment industry. The dress falls apart during a television appearance. Several audience members take cell phone pictures of the "wardrobe malfunction" and post them on YouTube. The client's reputation is ruined, she can no longer get work, late-night television show hosts are making her the butt of all their jokes, people are Tweeting that she is "the next Charlie Sheen," her spouse divorces her, and she's now living in a diaper box under the Brooklyn Bridge. If you have not specifically disclaimed "consequential and incidental damages," you are liable for everything that has happened to your client if a court finds (as they almost certainly will, since you knew the client was a celebrity) that her damages were "reasonable and foreseeable". <br /><br /><strong>(4) (Consider) Transferring Key Assets to Your Spouse or Other Family Members</strong><br /><br />This isn't for everyone, but if you're just starting out in business, you might want to transfer some key assets (such as your house or an investment portfolio) into the name of your spouse or another family member you trust. <br /><br />Do not wait until someone is threatening to sue you to start selling your precious antiques for $1 each. The courts will not uphold a transfer if they think it's a "fraudulent conveyance" being made solely to cheat someone. But if you make the transfer before you've done anything to hurt anyone, it should stick.<br /><br />If the transfer is to your spouse, make sure he or she is not involved in any way in your business. Otherwise, the two of you will be viewed as "partners," and a court will set aside the transfer. Also, make sure you follow all legal formalities. If you are transferring title to your house, record a "quitclaim deed" in the local land office. If you are transferring personal property (such as antiques or cars), have your attorney draw up a "bill of sale" (similar to a deed for real property) and sign it before a notary. Do all the things you would do if you were transferring the asset to a total stranger.<br /><br />If the transfer is to someone other than your spouse, make sure the person changes his will so that the asset will come back to you if he or she dies. Otherwise, there's a risk that the probate courts will transfer the asset to someone other than you, or (worse) to you and your seven brothers and sisters as co-owners.<br /><br />And remember : you are making a legal transfer. If you and your spouse divorce, you will not only be without a spouse - you will also be homeless.<br /><br /><strong>(5)Don't Do Business with Crazy People</strong> <br /><br />I'm serious. Whenever a client of mine is sued, one of the first things they say is, "I KNEW IT! I knew this person was going to be trouble!" Your gut instincts should always be trusted - if a prospective client or customer behaves in an irrational or highly eccentric manner, or has a reputation of treating people unfairly, he probably is going to be trouble. <br /><br />You are not legally required to do business with every Tom, Dick and Harry who calls you. If you sense a potential client is a lawsuit waiting to happen, get rid of him. Let him down gently and professionally by saying something like, "I'd really like to help you, but I'm booked solid for the next few months, and I know you need this job done right away." <br /><br />Then . . . refer him to your toughest competitor.<br /><br />
<p><strong>Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em> and 15 other books. COPYRIGHT 2012 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.</p>
Staff
2012-11-26T15:01:00Z
Five Techniques to Keep Your Business from Being Sued - Part I
Staff
http://www.DrLaura.com/b/Five-Techniques-to-Keep-Your-Business-from-Being-Sued---Part-I/279361528478635291.html
2012-11-09T15:01:00Z
2012-11-09T15:01:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a></p>
Without a doubt, hands down, the most common question I get from new clients is: "Hey Cliff, I'm thinking of starting a business, but I'm afraid that if I make a mistake, someone is going to sue me. I will lose my house, and my spouse will divorce me and take the kids. How can I keep from getting sued when I run my own business?"<br /><br />Just about every entrepreneur I come in contact with asks that question at some point. And if they don't, they really want to but are embarrassed to come out and say it out loud.<br /><br />So here's my answer, in two words: <em>you can't</em>.<br /><br />That's right. There is no magic bullet that will prevent people from suing you. If you foul up badly enough and the other person has tons of money and loves to sue people, you will be sued. America is a highly litigious country where everyone is entitled to their day in court. Anyone can sue anybody else for just about anything, and the risk of being sued is part of the joy of running your own business. You have to live with that. If you don't like that, go somewhere else where commercial disputes are resolved by kidnapping and shooting the offending party.<br /><br />Having said that, there are some things you can do to keep the risk of lawsuits at a minimum - five things, in fact, that will probably reduce your risk of being sued by 95 percent or more. By doing as many of these as possible, you will be doing everything you possibly can to keep lawsuits at bay. Here they are:<br /><br /><em><strong>(1) Form a Corporation or Limited Liability Company (LLC) for Your Business: </strong></em><br /><br />By doing this, you put a "wall" up between your business assets (the stuff you use in your business) and your personal assets (everything else - your house, your cars, your kid's college tuition fund and so forth). With a corporation or LLC, if someone sues you, they can still get to your business assets, but your personal assets should be protected. Just be sure you treat the corporation or LLC with respect: do all the required paperwork, file your tax returns promptly, and make sure every customer, client and other potential troublemaker knows they are dealing with a corporation or LLC, not you individually.<br /><br />Specifically, you should make sure that:<br />
<ul>
<li> your corporation or LLC name appears prominently on your business cards, letterhead, website, marketing materials and any other information about your business that you make public;</li>
</ul>
<ul>
<li>your corporation or LLC has its own checking account, that all checks are made payable to the corporation or LLC (NEVER to you personally), and that you deposit all business checks in the corporation's or LLC's bank account; and</li>
</ul>
<ul>
<li> be sure to include the corporation or LLC name and your official title when signing letters, checks, documents and anything else that may have legal effect - for example, "XYZ Corporation, by John Doe, its President".</li>
</ul>
<strong><em>(2) Get as Much Liability Insurance as You Can Afford: </em></strong><br /><br />Even with a corporation or LLC, your business assets are still open to attack in a lawsuit. Also, having a corporation or LLC does not relieve you of personal liability for physical harm you cause other people. If you hit someone with your company car, both you and your corporation or LLC will be liable. So, you still need insurance.<br /><br />There are two types of business liability insurance policies: "commercial liability" and "errors and omissions" (E&O for short). <br /><br />Commercial liability coverage protects your business against lawsuits from people who suffer accidents or injuries on your property (think of it as "slip and fall" insurance). If you have a retail location or office space where you regularly see clients, you absolutely need commercial liability protection.<br /><br />But what if you work out of your home and make it a point not to see clients there (a good idea, by the way)? If you work out of a home office, your homeowner's insurance probably will not protect you if a customer or client is injured on your premises. You will need to purchase a "home-based business rider" to your existing homeowner's insurance policy.<br /><br />E&O coverage protects you from lawsuits arising out of your mistakes or breaches of contract (think of it as malpractice insurance for ordinary people) - for example, a construction contractor who uses substandard materials in building a house, a manufacturer who fails to deliver a key component on time for a client's product launch, or an information technology (IT) expert who accidentally downloads a computer virus to a customer's computer system.<br /><br />Get as much liability coverage as you can afford - I usually recommend at least $1 million per occurrence and $3 million overall for my clients who have service businesses. The premiums are deductible, and you will sleep better at night.<br />
<p><strong><em> (Watch for Part II after Thanksgiving)</em></strong></p>
<p><strong>Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em> and 15 other books. COPYRIGHT 2012 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.</p>
Staff
2012-11-09T15:01:00Z
Cold Calling That Might, Just Possibly, Work
Staff
http://www.DrLaura.com/b/Cold-Calling-That-Might,-Just-Possibly,-Work/75957870359467261.html
2012-11-05T15:02:00Z
2012-11-05T15:02:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a></p>
<blockquote>
<p><em>"I run a one-person consulting service that provides marketing, public relations and other image and branding consulting services to large corporations.</em></p>
<p><em>I generate most of my new business through personal networking. The problem is that personal networking is extremely time-consuming. Even when I do get an appointment with a decision maker at a large corporation, everything I suggest is often shot down with responses such as 'we've already tried that', 'we already have someone doing that for us,' and so forth.</em></p>
<p><em>While I plan to continue my networking program, I'm thinking that I may also want to do some 'cold calling' on some of these companies, for example by sending them e-mail newsletters and other 'news release' communications that may generate interest.</em></p>
<p><em>What do you think of that idea?"</em></p>
</blockquote>
<p>Frankly, not much.</p>
<p>Frequent readers of this column know that I am no fan of "cold calling" of any kind. It is a waste of your time, and an insult to the people you are trying to sell. When you cold-call, you are hoping that the person you call just, possibly, at that very moment, have a need for your services.</p>
<p>Having said that, I recognize that it's difficult sometimes to resist the temptation to reach out blindly to a company or other potential client with whom you (or anyone in your network) have a personal relationship.<br /> <br />Let's say, for example, you read a newspaper or magazine article about a great new company in Silicon Valley that has created a killer software application for mobile phones. You know that you can help them build their brand awareness but there's no time to work your way through your LinkedIn contacts to get to someone at that company. The opportunity is immediate, and the time to strike is now.<br /> <br />Here are some techniques that might, just, possibly work.<br /> <br />First of all, forget about e-mail. Sending someone you don't know an e-mail message of any kind is spam, period. We've all got spam filters on your computers, and there's always the "delete" key, which can be struck several times a second after a quick glance at the message heading.<br /> <br />You need to put together a short presentation and overnight it, via Federal Express, UPS or other overnight courier, to the CEO of the company.<br /> <br />The cover letter of the presentation should reach out and grab the CEO by the throat - if you don't get his or her attention within five seconds, the ballgame's over.<br /> <br />Here's a suggestion: "I was intrigued by the recent article about your company in XYZ Magazine, so I took a look at your website. While it's obvious you are building a world-class business, there are several things you could be doing a lot better. Specifically, . . . "<br /> <br />Then, list some specific issues with their website that require improvement.<br /> <br />Yes, this is aggressive and "in your face". But most CEOs I know will stop whatever they're doing and read the specifics out of curiosity. You have gotten their attention and, if your arguments are compelling, you might just get a callback (perhaps from the company's existing web design firm once the CEO forwards your letter to them).<br /> <br />A friend of mine is a marketing consultant who specializes in direct mail campaigns - what most of us might call "junk mail". When she receives a piece of junk mail that doesn't work, she sends it back to the CEO of the company that sent it, along with a short letter pointing out what doesn't work, why she would never respond, and offering her services to help improve the company's direct mail image. Believe it or not, she sometimes gets responses from these companies wanting to know more about her and what she does.<br /> <br />Once you have gotten the prospect's attention, there is no need for further direct mail approaches. You would schedule a meeting with the company CEO and handle it the same way you would a networking contact.<br /> <br />Here's another idea: identify a new, "hot button" issue your corporate clients are facing, and offer the CEO some free advice on how to deal with it.<br /> <br />For example: "Many companies are worried that their employees are saying bad things about them, or disclosing confidential information about their operations, on Facebook, LinkedIn, and other social media websites. I am willing to visit your corporate headquarters and meet with you and your senior officers, without charge, to discuss ways you can deal with that challenge without damaging employee morale or depriving them of their constitutional rights to freedom of speech. If you are impressed with what I have to say, I would ask that you reimburse my airplane ticket, but otherwise you would have no obligation to me."<br /> <br />By offering your corporate clients a no-risk, no-lose proposition, you are quite likely to get a positive response. And if they're not impressed and refuse to reimburse your plane ticket, well, it's usually tax deductible . . .<br /> <br /> <br /><br /><strong>Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em> and 15 other books. COPYRIGHT 2012 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.</p>
Staff
2012-11-05T15:02:00Z
Small Business Advice from The New York Business Expo
Staff
http://www.DrLaura.com/b/Small-Business-Advice-from-The-New-York-Business-Expo/174931338635512.html
2012-10-29T07:02:00Z
2012-10-29T07:02:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a></p>
<p>Recently, I had the privilege of attending the 2012 New York Business Expo at the Javits Center in New York City. This event, which grows bigger and bigger each year, boasted thousands of attendees and over 100 exhibitors with products and services designed to help small businesses and their owners.<br /> <br />As I do when attending any trade show, I look for the "little" exhibitors that are just getting off the ground. Here is some advice from people who have "walked the walk" and are struggling to build a successful business in the icy crucible that is the Big Apple.<br /> <br />"You cannot project a professional image when talking on a cellphone. There is too much background noise. If you have a service business you still need a professional phone system with a message center and call forwarding technology that will tell people you are serious about your business." Danny Danny Lu, Seawolftech.com (provider of VOIP, SoftSwitch, SoftPhone and IP phone systems).<br /> <br />"Fail fast, fail often, and fail cheaply. Technology is so cheap now you can throw a million things online at the same time and see which ones catch on." Nelly Yusupova, DigitalWoman.com (networking organization for women in technology).<br /> <br />"Text messaging is the wave of the future. I mean, look at all the kids today. To be successful, a small business has to learn to market itself in 140 characters or less using no vowels." Virginia Gudiel, Wordivate.com (mobile marketing solutions).<br /> <br />"If you're buying a franchise, don't be afraid of franchises that run their own 'company stores.' When franchises run their own stores, they are going through the same challenges you are, and are more likely to adapt quickly to market changes than those who don't own stores." Bob Wenson, LittleCaesars.com (pizza franchise, competes with Domino's).<br /> <br />"If you want to raise capital for a startup, worship your credit score, and make sure any credit card balances are less than 30% of the available credit on those cards." S. Colin Fraser, ColleenDwyer.com (finds loans for small businesses and entrepreneurial startups).<br /> <br />"If you want to impress a customer, make a BobbleHead or action figure of yourself and send it to them. They will be a daily reminder of who you are, and they're a lot harder to throw away than a business card." Stewart Barnett, AllBobbleheads.com (makes custom BobbleHead dolls for celebrities and business owners).<br /> <br />"There are five websites now for every man, woman and child in the United States. If people can't find your site, it's not worth having one." Frank Holland, eZanga.com (search engine marketing consultants, and probably the only company in America named after a frog that committed suicide).<br /> <br />"Bend over backwards for your customer. If his computer server breaks down at midnight, get out of bed, load a new one in your car, and drive it up to him so he's back up and running the next morning." Robert Mulé, computerns.com (information technology network consulting and outsourcing firm).<br /> <br />"If you're thinking of buying a fast-food franchise, don't get caught up in trendy concepts. Invest in something that's going to be around for a long while. Cupcakes are so yesterday. Frozen yogurt was big in the 1980s, faded out in the 1990s, and is coming back again. But burgers are forever." Marty Casey, Mooyah.com (franchise offering high-end burgers, fries and shakes, competes with Five Guys Burgers and Fries).<br /> <br />"If you've got employees working at remote locations, there's a good chance they're wasting time, running personal errands on your time, or otherwise goofing off on the job. By tracking their location at all times, you reduce overhead costs and keep them on their toes. When the cat's away, the mice will play." Jason Gaines, LaborSync.com (GPS service that tracks employees' time and location with their mobile devices).<br /> <br />"No one ever drowned in their own sweat, and no one ever died from eating too much broccoli. Although some people get gas." Ellen L. Harnett, backtobasicwellness.com (diet and nutrition consultant and "digestive diva").<br /> <br />"You need to get into the game of golf to be considered a member of the inner circle with your business associates, your peers, your boss. It is there that rousting about and bumping shoulders with business associates, you will be seen as a real person, a new person to them and perceived as having more in common back in the office or in the industry. It's the development of this kindred spirit among the players that in the business world leads to promotions, to big figure deals." Joan Cavanaugh, BoardroomGolf.com (golf instruction for executive and entrepreneurial women).<br /> <br /><br /><strong>Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em> and 15 other books. COPYRIGHT 2012 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.</p>
Staff
2012-10-29T07:02:00Z
Building a Successful 'Authorized Rep' Program
Staff
http://www.DrLaura.com/b/Building-a-Successful-Authorized-Rep-Program/498966502672566331.html
2012-10-15T14:01:00Z
2012-10-15T14:01:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a></p>
<blockquote>
<p><em>"My wife and I have started a line of all-natural cosmetics. We launched our website a while back, and have received several inquiries from customers who love our products so much they want to become sales representatives for us.</em><br /><br /><em>Both of our mothers were 'Avon ladies' when we were children, so we know a little bit about how this works. What are some of the legal issues we will face in setting up a 'rep' program similar to Avon's?"</em></p>
</blockquote>
<p>Back in the day, when the baby boomers were young, every neighborhood had at least one "Fuller Brush man" or "Avon lady" selling products door to door in their spare time. Interestingly, the model appears to be coming back with the increasing popularity of social media websites such as Facebook and LinkedIn. A lot of companies are looking to pay people for recommending and selling their products to their friends, neighbors, family members and acquaintances, and even established companies have "affiliate programs" where people can receive commissions for selling the company's products on their own websites.<br /><br />Here are some of the legal issues you will need to consider when setting up a "rep" program:<br /><br /><strong><em>Decide Whether Your Reps Are "Agents" or "Distributors" </em></strong></p>
<p>There's a big difference. An "agent" generates orders for your products. You fulfill and ship each order, and collect the money directly from the customer. Then, every couple of weeks or once each month, you pay your rep a percentage of the sales made each month. <br /><br />A "distributor," on the other hand, buys your products directly from you, at a discount, and then resells them to the customer.<br /><br /><strong><em>The benefits of an "agent" program are:</em></strong><br />* You know who your customers are, and you can build a customer list, enabling you to sell more stuff directly to them;<br />* You know your customers are getting good service because you are providing it.<br /><br /><strong><em>The benefits of a "distributor" program are:</em></strong><br />* You get paid up front, with fewer orders and returns;<br />* Your rep handles any collection issues.<br /><br /><strong><em>Make Sure Your Reps Are "Independent Contractors"</em></strong> </p>
<p>While you can set guidelines for your rep's conduct (for example, you can prohibit them from making any statement about your products you haven't authorized), you cannot - CANNOT - direct and control their activities. That makes them "employees," requiring you to withhold taxes from all commissions and other amounts you pay them.<br /><br />Your reps must be able to set their own hours. Also, "repping" your products should not be their only job. If you sense a rep is working full-time selling for you, you might ask them to form a corporation or limited liability company (LLC) for their business, as legal entities generally are not considered employees for tax purposes.<br /><br /><strong><em>Make Sure You Are Not Setting Up a "Franchise" </em></strong></p>
<p>If you allow your reps to conduct business under your trademark, or require them to pay an upfront fee to become your rep, operate within an exclusive territory, or comply with detailed rules as to how and when they may sell your products, there's a risk that the Federal Trade Commission may view your rep program as a "franchise," requiring you to comply with a <a href="http://en.wikipedia.org/wiki/Franchise_Rule" target="_blank">complex set of disclosure and other legal requirements</a>. <br /><br /><strong><em>Make Sure You Are Not Setting Up a "Network Marketing" Program</em></strong> </p>
<p>If, in addition to paying your rep a commission on products they actually sell, you also allow them to hire other reps and pay them a commission on all sales these "sub-reps" generate, you are starting to look like a "network marketing" program.<br /><br />The "network marketing" label is generally bad for branding, as it is associated in the public mind with cheap, shoddy goods and aggressive sales tactics. If not carefully monitored, a network marketing program can degenerate into an illegal pyramid scheme (i.e. your reps will be making more from hiring sub-reps than they do actually selling your products). There's also a greater chance that a rep will hire sub-reps without making 100 percent sure that they are "independent contractors."<br /><br /><strong><em>Watch Out for the FTC's "Endorsements and Testimonials" Rule </em></strong></p>
<p>There's a good chance your reps will want to advertise and promote your products on their websites, Facebook and LinkedIn pages, and other social media channels. <br /><br />In 2009, the Federal Trade Commission adopted a <a href="http://www.ftc.gov/os/2009/10/091005revisedendorsementguides.pdf" target="_blank">detailed set of rules governing endorsements by consumers, experts, organizations and celebrities.</a> While intended to apply primarily to professional product reviewers, the FTC guidelines prohibit your reps from promoting your products without disclosing that they receive money or other compensation for doing so.<br /><br /><strong><em>Make Sure You Don't "Cannibalize" Other, More Profitable Distribution Channels </em></strong></p>
<p>Finally, keep an eye on your future growth plans. If it becomes possible for you to sell your products to department stores and other big customers through long-established retail distributors, they will not want to compete with a small army of individuals selling door-to-door or on eBay. They will want you to terminate your rep program, and that won't be either easy or pleasant.</p>
<p><br /><strong>Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em> and 15 other books. COPYRIGHT 2012 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.</p>
Staff
2012-10-15T14:01:00Z
Professionalism at Home
Staff
http://www.DrLaura.com/b/Professionalism-at-Home/842009778741600198.html
2012-10-08T14:01:00Z
2012-10-08T14:01:00Z
<strong>Jill Hart </strong><br /><a href="http://www.cwahm.com" target="_blank">www.cwahm.com</a><br /><br />One of the benefits of working from home is the ability to have a relaxed atmosphere. You can set your own schedule, work around your family, and even lounge in your pajama pants from time to time. <br /><br />However, one of the drawbacks of working from home is the inability to have a relaxed atmosphere. Yep, you read that right. As much as I love working from the comfort of my home, there is a serious side to my business as well. There are times when I must set aside my comfort and ensure that my clients get the very best from me. <br /><br />The question that comes to mind then is, "How do we retain professionalism while we're working at home?" <br /><br /><em><strong>Here are a few ideas:</strong></em><br /><br /><strong>Take a shower</strong> - I smile as I write this because I know how basic this tip is. However, I know firsthand that it can be difficult to get motivated to get up and shower as if you were heading to an office for the day. Some days it can be hard just to find the time to shower (if you have small kids at home, you're nodding as you read this), but you can do it. And don't just stop with a shower - put on a cute outfit, add a little makeup and get yourself feeling good. You'll be surprised what a difference feeling good about yourself can make in your attitude, which will in turn impact your family, your business and all those you come into contact with throughout the day.<br /><br /><strong>Clean your room</strong> - While it may or may not be true that "cleanliness is next to godliness," it has certainly proven true in my life that cleanliness helps me to focus. When my office is a mess and my desk is piled high with stacks of paper, I seem to get less done. Take 15 minutes each morning and clear your space as much as possible. Not only will you think more clearly, but you will also be saved from embarrassment if unexpected company (or a client!) stops by.<br /><br /><strong>Go to school</strong> - Never stop learning. The day you think you've "made it" is the day your business fails. To continue to grow as a business owner, it's an absolute MUST that you continue to learn. This can come in the form of heading to college for a class or two, or simply picking up a few books on leadership or business from a bookstore or your local library. The more you learn, the more confidence you will build. And the more confidence you build in yourself, the more confidence your clients will have in you.<br /><br />Professionalism is oftentimes overlooked by work-at-home business owners, however, it's one of the most important things we can do to grow our businesses to the next level. While the steps necessary to project a professional image may seem simple, I promise you that by practicing them you will see a remarkable difference in yourself and in your business.<br /><br /><strong>Jill Hart</strong>, founder of Christian Work-at-Home Moms <a href="http://www.cwahm.com" target="_blank">www.cwahm.com</a> and <strong>Diana Ennen</strong>, president of Virtual Word Publishing, <a href="http://www.virtualwordpublishing.com" target="_blank">www.virtualwordpublishing.com</a> have teamed up to write, <em>So You Want to Be a Work at Home Mom: A Christian's Guide to Starting a Home-Based Business</em> (<a href="http://www.soyouwanttobeawahm.com" target="_blank">www.soyouwanttobeawahm.com</a>). Start or expand your business today with their help. <br />
Staff
2012-10-08T14:01:00Z
Sizing Up Amazon's 'Fulfillment By Amazon' Program
Staff
http://www.DrLaura.com/b/Sizing-Up-Amazons-Fulfillment-By-Amazon-Program/-925023390027857928.html
2012-10-01T14:01:00Z
2012-10-01T14:01:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a></p>
<p><em></em>Anyone who's ever sold anything online - either directly from a website or on one of the major e-commerce platforms such as eBay or Amazon - knows that often the most unpleasant part of the process is packing, shipping and fulfilling orders. It is labor-intensive, and the time involved can eat into your profits (by limiting the number of orders you can process at any one time).<br /><br />So it should come as no surprise that one of the hottest things in online retail right now is the <a href="http://www.amazon.com/fba" target="_blank">"Fulfillment By Amazon" service</a> ("FBA" for short) offered by Amazon.com.<br /><br />Amazon has been building warehouses and distribution centers throughout the United States to ensure that customers receive orders quickly and inexpensively (often for free). With FBA, online sellers can take advantage of those facilities and "outsource" the packing, shipping and fulfillment part of their business, even if they are not selling on Amazon (for a fee, of course).<br /><br />According to Chris Green, a leading FBA expert and author of <em>Retail Arbitrage: The Blueprint for Buying Retail Products to Sell Online for Big Profits</em> ($25.00 paperback, $9.99 Kindle), FBA is the future of online retail, at least for small business sellers. <br />"Setting up an Amazon business that uses FBA is much like buying a franchise," says Green. "With a franchise, you buy a package, get some knowledge and equipment to get started, and then it's up to you to run the business." Unlike a franchise, though, buying and selling online using FBA does not require an initial investment. "There are no major upfront costs to get started," says Green, adding that FBA fees can be as little as $2.00 for orders placed through Amazon.com. "All you really need is a little knowledge, some motivation, and some inexpensive tools and services."<br /><br />Green's company, <a href="http://www.fbapower.com/" target="_blank">FBAPower</a>, offers a variety of software solutions, mobile phone applications, webinars and information products designed to enable sellers to take maximum advantage of FBA.<br /><br />FBA is a five step process.<br /><br />First, the seller opens an Amazon seller's account and selects the "FBA" option.<br /><br />Second, the seller sends its new or used products to Amazon.<br /><br />Third, Amazon catalogs and stores the products in one of its network of fulfillment centers.<br /><br />Fourth, Amazon fulfills orders placed directly on Amazon.com or fulfillment requests the seller submits for sales not on Amazon. When listed on Amazon.com, each seller's listings are sorted by total price (price plus shipping) so sellers who use FBA are often first even if they have a higher list price. <br /><br />Fifth, when an order is placed, FBA picks the seller's products from inventory, packages and ships the products to the customer.<br /><br />"FBA is a win-win for everyone," says Green. "The customer gets prompt and professional delivery at little or no cost, and the seller can focus on sourcing inventory, expanding their product lines, increasing margins, and putting merchandise up for sale without the hassle of fulfilling and keeping track of individual orders."<br /><br />So what's the catch?<br /><br />"You have to know and understand the rules of selling on Amazon, and especially FBA," says Green. "Amazon is much different from eBay where you can mess up and eBay pretty much isn't going to do anything about it. If you're caught breaking Amazon's rules or provide a poor customer experience, Amazon will ban your account, and there will be no second chances."<br /><br />Your merchandise must also conform to Amazon's product listings and categories. Precisely. So, for example, if you are selling a power drill with only one of the two batteries required, you will not be able to sell it on FBA even if you make proper disclosure.</p>
<p>Probably the biggest catch - one which Amazon is taking steps to correct but may create problems for FBA sellers selling a wide variety of merchandise - is that FBA sellers may not be totally in compliance with state sales tax laws.<br /><br />Online sellers are required to pay sales tax in their home states and in any other state in which they have a physical presence or "nexus". By using FBA, online sellers have "nexus" in each state in which their merchandise is being warehoused (i.e. where Amazon's fulfillment center carrying their merchandise is located). <br /><br />While Amazon does send you periodic reports showing you where your inventory is located, Amazon can, without warning or notification, ship your inventory to a different fulfillment center. Also, while Amazon does collect sales tax and remit it to you, it is up to you to register with each state tax authority and pay the taxes to them when due (usually quarterly).<br /><br />This situation may create compliance headaches for FBA sellers, especially in light of states' increasingly aggressive efforts to collect sales taxes on Internet commerce. <br /><br />Still, Green says, the benefits of FBA, especially for small sellers, far outweigh the risks. "You are outsourcing your entire shipping department, Amazon is basically absorbing the shipping costs for you, and Amazon buyers prefer FBA sellers because they know they will get their item fast and that customer service will be top-notch. What's not to like?"</p>
<p><br /><br /><strong>Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em> and 15 other books. COPYRIGHT 2012 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.</p>
Staff
2012-10-01T14:01:00Z
Top 4 Work-from-Home Scams
Staff
http://www.DrLaura.com/b/Top-4-Work-from-Home-Scams/-238059362548505458.html
2012-09-17T07:01:00Z
2012-09-17T07:01:00Z
When we find a useful article for our listeners who work from home, we like to bring it to your attention in the Work-at-Home section. Here's an article entitled <a href="http://career-services.monster.com/yahooarticle/Avoid-Work-from-Home-Job-Scams#WT.mc_n=yta_fpt_article_top_work_from_home_job_scams" target="_blank">"Top 4 Work-from-Home Scams,"</a> which breaks down for you how to know when a work-at-home employer is legitimate and when they're just trying to take money out of your pocket and put it in theirs. The author discusses what you should look for and what questions you need to ask about something that looks too good to be true. <br />
Staff
2012-09-17T07:01:00Z
How to Respond to Bogus Online Customer Reviews
Staff
http://www.DrLaura.com/b/How-to-Respond-to-Bogus-Online-Customer-Reviews/401836767765484409.html
2012-09-04T14:02:00Z
2012-09-04T14:02:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a></p>
<blockquote><em>"I run a service business in a small town where everybody knows everyone else. Recently, someone posted a review of my business online, anonymously, saying I provided lousy service and that he would never deal with me again. I was shocked as I wasn't aware I had any unhappy customers.</em><br /><br /><em>I had my computer person look into this, and the email address attached to the posted review was registered to a person with the same last name as one of my local competitors. I'm thinking it may be one of his relatives posting a false review just to give my business a black eye.</em><br /><br /><em>I'm afraid people will see this review and think I really do provide lousy service. What's the best way to handle this?"</em></blockquote>
Thanks to the Internet, we can find out with a click of a button if anyone has had a bad experience with a product, a service, a small business or a local professional. <br /><br />A number of websites have sprouted up to provide a forum for online reviews. Some, like <a href="http://www.angieslist.com" target="_blank">Angie's List</a>, charge users a small fee in order to weed out bogus reviews. Most of these sites, however, including Amazon.com and <a href="http://www.yelp.com" target="_blank">Yelp.com</a> are free, which encourages anonymous postings. While most of these postings are valid and genuine, there's a temptation for people with an "axe to grind" to post false reviews knowing they cannot be tracked down.<br /><br />The worst thing you can do is to overreact, according to Josh King, General Counsel of <a href="http://www.avvo.com" target="_blank">Avvo, Inc.</a>, a leading medical and legal website where consumers get their questions answered by a community of rated doctors and lawyers. <br /><br />King admits it's hard for small business owners to be objective when dealing with a hurtful review, but he says you have to calm down and ask if there might be some merit to the review, regardless of its origin: "You should never assume that a negative review is bogus. You have to ask, is this a possible blind spot? My employees are very good at 'managing up' to me, but maybe they're being surly to the customers and this is the first inkling I have of that."<br /><br />But what if you have a strong suspicion that a negative online review is bogus - for example, because it isn't worded correctly, doesn't sound familiar, or ties in a little too closely to the message that a competitor frequently uses? <br /><br />King again warns about overreacting, citing the "Streisand Effect" (named after an incident involving the singer Barbara Streisand), by which bringing a lawsuit over an online posting creates exponentially greater attention to the posting than it would have received had it simply been ignored. "The truth about online postings is that there is a big difference between reviews left on sites heavily used by consumers - like Amazon, Avvo or Yelp - and postings in the vast underbelly of the Internet" says King, explaining this is especially true of blog entries, "tweets" on Twitter.com, and other "ephemeral" postings.<br /><br />According to King, there are three ways you should never respond to a negative online review:<br />
<ul>
<li>by threatening to sue - most reviews are merely people's opinions, and therefore, not actionable as "libel" or "slander";</li>
<li>by posting a bunch of overly positive reviews - this is called "astroturfing," and can get you into legal hot water for false advertising; and</li>
<li>by posting a detailed version of "your side" of the facts - "this makes you appear defensive," says King, and especially if you are a professional, can open you up to charges of disclosing a client's or patient's confidential information.</li>
</ul>
So what is the right way to respond to a negative online review you think is bogus? <br /><br />First, says King, you should contact the website where the review appears and let them know your suspicions. Most social media websites have "community guidelines" for people who post reviews, and will investigate a possible violation of those standards if brought to their attention.<br />Second, if the review is truly damaging, post a short response saying something like, "I'm sorry you have had a bad experience with us; please contact me personally at the following email address and I will do everything I can to make this right." This shows that you really care about your reputation and customer service. If the review really is bogus, the poster won't contact you. <br /><br />Lastly, encourage your happy customers to post positive reviews. Send them an email with a direct link to a place where they can say something great about your business.<br /><br />Negative reviews can actually enhance your reputation in the marketplace. "Everyone knows nobody's perfect and that there are some crazy customers out there whom nobody can satisfy," King says, adding, "You really don't want 100 percent positive reviews because nobody will believe it. They will assume you're gaming the system."<br /><br />What about making your customers sign a document saying they won't criticize you online before you will do business with them? A New York City dentist tried that and is now facing a multimillion-dollar lawsuit in federal court for violating her patients' rights to free speech.
<p><strong>Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em> and 15 other books. COPYRIGHT 2012 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.</p>
Staff
2012-09-04T14:02:00Z
The Twelve Dumbest - And Most Common - Small Business Mistakes
Staff
http://www.DrLaura.com/b/The-Twelve-Dumbest---And-Most-Common---Small-Business-Mistakes/-298403647682833043.html
2012-08-27T14:02:00Z
2012-08-27T14:02:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a></p>
<p>With more and more people starting businesses of their own - out of necessity, not choice - I'm seeing more and more people making the same mistakes over and over again.</p>
<p>Here is my "top 12" list of the dumbest entrepreneurial moves - all are easily avoidable with a little common sense and "street smarts".</p>
<p><strong>Not Knowing Your Customers.</strong> Without customers, it's not a business. Successful entrepreneurs are lifelong students of human nature. People often don't buy things they "ought" to buy. People often don't buy things they say (in opinion surveys) they will buy. People often don't buy things that make the World a better place. People often prefer inferior things to superior ones. You must learn what really motivates your customers to part with their hard-earned cash, and market to them as they really are, not as you want them to be, or as they should be.</p>
<p><strong>Not Marketing Aggressively Enough. </strong> Marketing is a daily job. Your business must be "ubiquitous": your customers should see you everywhere they look. Never get so busy with day-to-day operations that you let your marketing slide. Each day do one new thing to reach more customers, or remind your existing customers you're still there.</p>
<p><strong>Overestimating Customer Loyalty.</strong> "Yeah, a bigbox retailer just moved into town, but my customers will be loyal to me because I provide better service" - the epitaph of many failed businesses. People want better service, but they won't pay extra for it. If you're not giving them the best deal in town, you will lose them.</p>
<p><strong>Being Too Slow to Adapt to Changes.</strong> Things change rapidly. New technologies wipe out whole business models. Competitors change their strategies. People change their minds about what they will (and won't) buy. You must be ahead of those changes, not frantically trying to catch up. If it seems you're world isn't changing, you're not looking hard enough.</p>
<p><strong>Underestimating, or Ignoring, the Competition.</strong> Every business has competition, and not just from other businesses. Sometimes the toughest competitor is a "what" - a new way of doing things - rather than a "who". If you don't know why your business is better than your competitors, or you are not getting that message across to your customers, you are losing the war.</p>
<p><strong>Picking the Wrong Partner.</strong> Nothing keeps you awake at nights worse than a partner who's gone over to the dark side. Your partner is not your friend. He or she is someone who can perform the essential tasks of the business that you are unable to do. Do not pick partners who are like you. Pick partners who "complement" you. And make sure you can buy them off cheaply if things don't work out.</p>
<p><strong>Not Hiring Enough People.</strong> Yes, employees are expensive. They have legal rights. And they can be real pains sometimes. But when you cut staff too much, the quality of your products or services suffers, and you will lose customers. Also, you end up doing grunt work when you should be building your business.</p>
<p><strong>Underestimating Startup Costs.</strong> It's going to cost you twice as much to get a business off the ground than your best projections. Be sure you have enough cash on hand - or lines of credit -- to get through at least the first 12 to 18 months of operations.</p>
<p><strong>Underpricing Yourself. </strong> You should undercut your competition, but not by too much. If your competition is charging $100 an hour, $90 an hour will get you lots of business. At $50 an hour, customers will think you are desperate, or don't know what you are doing. If you quote too high a price, you can always offer discounts. If you price too low, it's tough to raise prices later on.</p>
<p><strong>Not Hiring Lawyers, Accountants and Other Necessary Professionals. </strong> There is a lot of legal and tax information online, and lots of places where you can get legal form contracts and other documents for a small one-time fee. Much of this information is wrong, and most of the forms are useless. Do not try to do this stuff yourself. Every small business needs a good lawyer AND a good accountant. Yes, they charge fees - sometimes expensive ones - but they will get the job done right, and the fees are tax-deductible. If they don't, it's their fault, not yours, and you can sue them.</p>
<p><strong>Playing Games with Taxes.</strong> Nothing will get you into hot water faster than cheating on your taxes. Always have enough cash on hand to pay your income, sales and payroll taxes when they become due. Report every penny of income you make. Take only the deductions you qualify for. File your returns on time. </p>
<p>And the all time No. 1 small business mistake . . .</p>
<p><strong>Being Too Nice.</strong> Being ethical, and having personal integrity, is essential to success in the business world. Being nice, however, can get you killed. Do not confuse the two. Learn the difference, and make sure nobody takes advantage of you because they think you will let them get away with it.</p>
<p><strong>Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em> and 15 other books. COPYRIGHT 2012 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.</p>
Staff
2012-08-27T14:02:00Z
More on 'Retail Arbitrage'
Staff
http://www.DrLaura.com/b/More-on-Retail-Arbitrage/208709893716146984.html
2012-07-23T14:01:00Z
2012-07-23T14:01:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a></p>
<p><em></em>Last week's column on <a href="/b/When-Retail-Arbitrage-Isnt-Legal/14624601150985971.html" target="_blank">"When Retail Arbitrage Isn't Legal"</a> generated lots of fan mail, mostly from readers who have been doing this for some time and were shocked - shocked! - to find out that there might be some laws that pertain to this new and (as yet) untested field of e-commerce. "Retail arbitrage" is buying something at retail and then reselling it (usually on eBay or Amazon) for an even higher price.<br /><br />To save time, I grouped the e-mail responses from last week's column into categories.<br /><br /><span style="text-decoration: underline;"><strong>Category No. 1:</strong></span> "Wait a minute! I can't be an 'unauthorized wholesaler' because I pay the full retail price whenever I buy something. That can't be illegal. Because the only people who pay more than retail are people who can't get the merchandise any other way. The manufacturer shouldn't complain because I'm generating sales it wouldn't get otherwise."<br /><br />This is a sound and logical argument. The problem is that most retail contracts prohibit resales to wholesalers, and a "wholesaler" is usually defined as anyone who buys with the intention to resell, regardless of the price they paid. So technically you are a "wholesaler," and your local retail outlet or online merchant should not be selling to you if they suspect you are putting them in breach of their contract to the manufacturer.<br /><br />The other (possible) problem is most people who buy from "retail arbitrageurs" are people who are locked out of the manufacturer's distribution system - for example, residents of a certain country where the manufacturer does not want to do business, cannot legally do business, or already has an exclusive distributor. Circumventing that distribution system may cause legal problems for the manufacturer. Also, you may be selling in violation of U.S. export laws or the laws of the host country.<br /><br /><span style="text-decoration: underline;"><strong>Category No. 2:</strong></span> "Wait a minute! The 'first sale doctrine' says a manufacturer loses its copyright and trademark protection when its product is sold. Once I buy at retail, I can do anything I want with the merchandise."<br /><br />Under the "first sale doctrine," when a trademarked or copyrighted item is sold, the manufacturer loses its "distribution right" - the right to sue a reseller for infringement - to that physical product at the moment of sale. The manufacturer does, however, retain its "reproduction right" - the right to sue for infringement if you are selling illegal "knockoff" products or "bootleg" reproductions of CDs and DVDs.<br /><br />If a manufacturer wants to shut you down because you are reselling its products in a manner it doesn't like, it is unlikely to sue for trademark or copyright infringement because of the "first sale doctrine." It has plenty of other ammunition, however - keep reading.<br /><br /><span style="text-decoration: underline;"><strong>Category No. 3:</strong></span> "Wait a minute! A manufacturer can't prevent resales of its merchandise beyond the initial sale because I'm told that violates the antitrust laws."<br /><br />Believe it or not, it doesn't. The antitrust laws are fairly flexible in allowing manufacturers to deal with whomever they wish as long as (1) they don't try to fix the resale price (for example, by imposing minimum or maximum prices for resellers) and (2) they don't discriminate unlawfully in choosing distributors (for example, by refusing to sell to distributors of a certain race, religion or national origin).<br /><br />Many manufacturers of luxury goods want to create the impression (or, if you're cynical, the illusion) that their goods are "exclusive," very rare and hard to obtain. Those manufacturers generally do not want their merchandise available at Walmart, or on eBay, because they fear it will confuse the marketplace (lawyers refer to this as "trademark dilution"). Prohibiting resales in those marketplaces probably would not violate the federal antitrust laws (although doing so may violate the "unfair trade practice" laws of some states, which might be worth looking into if you are thinking of challenging such a practice).<br /><br /><span style="text-decoration: underline;"><strong>Category No. 4: </strong></span> "Wait a minute! You're telling me I have to advertise my products as 'used' or 'secondhand' even though they are still in the original packaging and shrink-wrap? No way! This stuff is still new."<br /><br />I hate to be the bearer of bad news, but once something sells at retail, it is considered "used" or "secondhand." You can no longer advertise it as "new" or "like new." Sorry.<br /><br /><span style="text-decoration: underline;"><strong>Category No. 5:</strong></span> "Wait a minute! If I buy from a retail store that is prohibited by contract from selling a manufacturer's stuff at wholesale, it is the store's problem, not mine, if I resell the merchandise online. The manufacturer can't come after me, right?"<br /><br />Yes, it can. If it really wants to shut you down, it will sue you for "inducing" the retailer's breach of contract - what lawyers call "tortious interference with contract." If you did it knowing of the restriction in the retailer's contract, it can even seek punitive damages. Big oopsie.<br /><br />For more information on the legal issues involved in retail arbitrage, see Chris Green's book <em>Retail Arbitrage</em>, or my own <em>The eBay Seller's Tax and Legal Answer Book</em>.<br /><br /><strong>Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em> and 15 other books. COPYRIGHT 2012 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.</p>
Staff
2012-07-23T14:01:00Z
When 'Retail Arbitrage' Isn't Legal
Staff
http://www.DrLaura.com/b/When-Retail-Arbitrage-Isnt-Legal/14624601150985971.html
2012-07-16T14:01:00Z
2012-07-16T14:01:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a></p>
<p><em></em>"I sell jewelry and related items on eBay. Many items I sell are from a specific designer who sells her jewelry in stores across North America, and I am well known on eBay for selling her unique designs.<br /> <br />A customer from Latin America called me last month and said she wanted to buy some items and have them shipped to a freight forwarder in the U.S., who would then forward them to her in Latin America. I contacted this freight forwarder, and they asked me to send them some MSDS's (Material Safety Data Sheets) on the products I would be sending. Some freight forwarders require this initially so they can determine that the items shipped are not flammable.<br /> <br />When I called the designer and asked for an MSDS form, they wanted to know which items I would be sending. I told them I wasn't exactly sure which items I would be sending, so I gave them a large list of items that I might possibly send because I wanted to have my bases covered and I didn't want to have to ask a second time for additional MSDS forms to cover items I had not mentioned. <br /> <br />The designer's people said it might take a couple of days to get all of these MSDS forms sent, so they would fax them to me after they got them all. Meanwhile, I left for lunch and then came back to a phone message saying they were cancelling the request for the MSDS forms since they had determined that I was reselling their products. After looking at my buying history, searching for me on the Internet, and finding that I sold on eBay, they said they would also be banning me from their website so I would no longer be able to purchase items online. They said they do not "allow" reselling of their products in the U.S. or internationally. They said they were sorry and realized it would be disappointing, but they had to protect their products.<br /> <br />I went into a local jewelry store that carries this designer's products and talked to the manager. While shopping in the past, I'd never come out and said that I was selling on eBay in case there was some problem with it, and it also was a way to make sure other people didn't come up with the same idea. I usually told the store cashiers that "I buy things for other people".<br /> <br />I told this store manager about the phone call from the designer, and she said that they all knew I wasn't buying all of these products for myself. She said her senior manager even knew I bought for resale purposes, and they didn't have a problem with it. In fact, she said they like me because I am their best customer! But even though she said I could still buy there, I don't think I can now because I'm afraid they might come after me since they know I am a reseller.<br /> <br />Do you think I could be sued if I were to continue purchasing products from my local stores?"<br /> <br />One of the hottest concepts in online retail right now is <strong>"retail arbitrage"</strong> - buying goods retail and then reselling them online for even more money. The idea is that people who cannot buy these items in their local stores will pay a premium over the retail price to buy them online.<br /> <br />Which is all well and good, until you bump into a manufacturer that already has an established distribution system.<br /> <br />Most high-end luxury goods companies (think Gucci, Louis Vuitton, Tiffany's) give their domestic and international distributors exclusive rights to sell their products within certain territories. When you engage in "retail arbitrage," you are undercutting those exclusive arrangements. If the manufacturer appears to be in cahoots with you, they could be sued by their distributors (or worse, the distributors may refuse to carry their merchandise anymore). <br /> <br />The law says that manufacturers can restrict their distribution channels any way they like, subject to certain very narrow restrictions (they can't discriminate against female-owned or minority-owned enterprises, for example). Sadly, they have every right to prohibit you from reselling their products if you are not an "authorized" reseller or wholesaler. If the designer complains to eBay about your activities, they are almost certain to pull your eBay Store, so I would stop doing this if I were you.<br /> <br />The local store manager who supplied you with inventory may be in bigger trouble. Most retail stores are prohibited from selling at wholesale, and if she "knew or had reason to know" that you were a reseller (buying 10 or more pieces of jewelry a week is a dead giveaway), she may lose her job.<br /> <br />"Retail arbitrage" is generally OK, but not where the merchandise is trademarked. When selling brand-name merchandise, you must be an authorized distributor. If you don't have a contract with the manufacturer saying you can sell at wholesale, then you can't.<br /><br /><strong>Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em> and 15 other books. COPYRIGHT 2012 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com.</p>
Staff
2012-07-16T14:01:00Z
Some Taxing Issues for Ebay Sellers
Staff
http://www.DrLaura.com/b/Some-Taxing-Issues-for-Ebay-Sellers/-18215548831274104.html
2012-06-11T14:03:00Z
2012-06-11T14:03:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a></p>
<p><em></em>I had the honor of speaking at last week's "eBay on Location" event in Denver, Colorado (<a href="http://www.ebayonlocation.com" target="_blank">www.ebayonlocation.com</a>) on two topics of great interest to eBay sellers and e-merchants generally:</p>
<ul style="list-style-type: circle;">
<li><strong>The "Legal and Tax Aspects of Your Business on eBay"; </strong>and</li>
</ul>
<ul style="list-style-type: circle;">
<li><strong>"Answers to the Most Common Business Questions When Selling on eBay."</strong></li>
</ul>
<p>Needless to say, I got a ton of questions after each session. Here are some "cutting-edge" tax issues facing eBay sellers today, and how I responded.<br /> <br /><strong>Q:</strong> <em>"If I buy all of my eBay merchandise at a local retailer and pay sales tax when I purchase it, am I subject to reporting and paying sales tax on those items when I sell them on eBay later on?"</em><br /><br /><strong>A: </strong> The short answer to this question is "yes." Even if you pay sales tax when you buy the item, you are required to collect sales tax if you sell it on eBay to a resident of your state. This shouldn't be surprising: after all, you pay sales tax when you buy a used car or secondhand clothing, don't you?<br /><br />What you are supposed to do in this situation is add the amount of sales tax for the item you bought to its "cost of goods sold," which you then deduct from the sales price when it sells on eBay. So, for example, if you buy something for $1 and pay six cents sales tax on it, the "cost of goods sold" of that item if $1.06. If it sells on eBay for $2, your gross profit (before eBay and PayPal fees, and shipping/handling costs) is 94 cents.<br /><br /><strong>Q:</strong> <em> "Do I have to pay use tax on the items I buy for my personal use, or just the items I buy for my business that I haven't paid sales tax on?"</em><br /><br /><strong>A:</strong> A "use tax" is a tax on items you buy for your own consumption (not for resale) on which you did not pay sales tax. So, for example, if you buy paper clips for your business at a local office supply store and pay sales tax at the register, you do not have to pay "use tax" on it thereafter.<br /><br />If, however, you bought those same paper clips from an out-of-state vendor on eBay, you would not be required to pay sales tax on that purchase, and you would have to pay use tax to your state for the privilege of using those paper clips in a local business.<br /><br />Every state that has a sales tax also has a use tax, and the rates are almost always the same. Many states impose a use tax on individual, consumer purchases as well as business purchases. Talk to your accountant to find out the rules that apply to you. <br /><br /><strong>Q:</strong> <em>"I am constantly asked about taxes on consignment items. Is it correct to say that if you buy an item for $10 and you sell it for $9, you have not made a profit, or do you have to claim that $9 as income on your taxes?"</em><br /><br /><strong>A:</strong> Consignment arrangements don't work that way. In a consignment, you take possession of the merchandise, but you don't pay anything up front for it. You then sell it on eBay for whatever price you think is right (or as dictated by the person who consigned you the merchandise, called the "consignor"). When it sells, you deduct your commission (usually 50% of the sale price) and pay the rest back to the consignor. At the end of the year you report ALL of your consignment commissions as income on your tax return, and send a Form 1099-MISC to each consignor reporting the total amount you paid to them (i.e. their share) during the year if it was more than $600.<br /><br /><strong>Q:</strong> <em>"I am completely confused about the tax issues when accepting consignments from people in other states. How can I possibly keep track of the sales tax with each sale if it happens to be sold back to that state?"</em><br /><br /><strong>A:</strong> You are required to pay sales tax (1) in your state if the purchaser is a resident of that state, and (2) in each state where your consignor has a "physical presence" if the purchaser is a resident of that state. So, for example, if I, a Connecticut resident, were to consign merchandise to you, you would have to collect and pay Connecticut's 6.35% sales tax whenever one of my items is purchased by a Connecticut resident. <br /><br />Most of your consignors, if they are individuals, will have a "physical presence" in only one state - where they reside. If you are dealing with companies, it is called "drop shipping," not consignment, and the rules get more complicated because these companies usually have multiple locations around the United States. I have devoted entire chapters of my book, <em>The eBay Seller's Tax and Legal Answer Book</em>, to consignment sales and drop shipping, and you will find the information there helpful.<br /><br /><strong>Cliff Ennico</strong> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of <em>Small Business Survival Guide</em>, <em>The eBay Seller's Tax and Legal Answer Book</em> and 15 other books. COPYRIGHT 2012 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com</p>
Staff
2012-06-11T14:03:00Z
When the Phone Stops Ringing
Staff
http://www.DrLaura.com/b/When-the-Phone-Stops-Ringing/425910350618446674.html
2012-05-29T19:49:00Z
2012-05-29T19:49:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a></p>
<p><em>"I run a small service business. The past several months I've been busy enough, but I'm getting a lot fewer jobs than I did this time last year when my phone was ringing off the hook. I know the economy's tough, and people just don't have the money they used to, but I'm worried that this is not just a short-term situation but a more permanent decline in my business. What can I do to turn the situation around?"</em><br /> <br />Whenever the phone stops ringing, or doesn't ring as often as it used to, you should be concerned. Never assume that it's a short-term problem: there's usually a reason for it. You have to find out just what's going on out there. Here are some questions you need to ask, and the steps you need to take.<br /> <br /><strong>Am I marketing my business everywhere I should?</strong> Most small businesses cut their marketing budgets during tough times. That's a big mistake. A slow-ringing phone may mean people aren't getting the word that you're out there.<br /><br />It's time to get shamelessly aggressive with your marketing. Have your company name and Website URL stenciled on your personal automobile. Stick flyers or cards under windshield wipers in parking lots. Put business cards up in car washes. If you or your employees speak fluent Spanish, put "se habla espanol" on every piece of marketing material.<br /> <br />Most importantly, get thee to the Internet (more about that later). Do you have an ad on Craigslist? Do you have a Website? Are you listed in every online directory that exists for service providers in your area? Are you offering coupon promotions on Groupon? These days people (especially younger people who grew up with the Internet) do not believe a business is "real" unless it has a Web presence.<br /> <br /><strong>Are there new competitors out there?</strong> When the phone stops ringing, it may be that you are getting "lost in the shuffle." Fifteen years ago when I starting practicing law on my own, I was the only lawyer in my state (just about) who was working out of his home most of the time. The idea was that by reducing my overhead costs to the bone, I could undercut my competition on price and still make a nice living. Now many young lawyers who are just starting their practices can't afford office space in my area. They are copying my business plan, working out of their homes and offering rock-bottom prices. <br /> <br /><strong>Am I becoming obsolete?</strong> Here are four words you should commit to memory: "the future is digital."<br /> <br />Are there software applications or Websites that do what you do for people, live and in person? If so you're in trouble. You can never match the prices offered by a software or Web-based application, because their operating costs are much, much lower than yours (sometimes close to nothing).<br /> <br />Find ways to take advantage of your online competition's weaknesses. Many small business owners now form their corporations or limited liability companies (LLCs) online, without lawyers, using one of several Web-based services. Those services, however, only perform some of the five or six steps necessary to set up a corporation or LLC in any state. Additional steps that must be performed to finish the process (such as registering for state and local taxes, or filing with your state unemployment commission if you have employees) are your responsibility. The better Websites tell you about these additional steps, but to my knowledge none of them will do them for you.<br /> <br />So . . . on my Website you will see the following: "Have you formed your corporation or LLC online, but are not sure all of the necessary steps have been taken? For a flat fee of $XXX, I will review your corporate or LLC paperwork, finish any incomplete tasks, and fix any mistakes that may have been made."<br /> <br /><strong>Am I saying "no" to business I should be saying "yes" to?</strong> Let me be frank: in a tough economy there is no such thing as a "too small" job. <br /> <br />If you are an electrical contractor, and a little old lady needs you to change a light bulb she cannot reach, you take the job.<br /> <br />If you are an accountant, and someone doing their own tax return calls with "one or two quick questions", you take the job.<br /> <br />Whenever someone calls with a job you think you can do but haven't really done before, you take the job and learn how to do it by doing it.<br /> <br /><strong>Is my pricing right for the times?</strong> In tough times customers always opt for the lowest prices. Forget about your superior quality and reputation: they still want the best deal possible. Look at your costs, and cut them ruthlessly. Look at your prices, and discount heavily. Look at your competition, and offer to match their prices. Do everything you can to get the business. Only then should you worry about profitability: a business with zero sales is by definition unprofitable. <br /><br />Cliff Ennico (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of "Small Business Survival Guide," "The eBay Seller's Tax and Legal Answer Book" and 15 other books. COPYRIGHT 2012 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com</p>
Staff
2012-05-29T19:49:00Z
Disaster Recovery Made Simple
Staff
http://www.DrLaura.com/b/Disaster-Recovery-Made-Simple/-914866816858238960.html
2012-03-12T17:35:00Z
2012-03-12T17:35:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a></p>
<p><em>"I am a lawyer who works in a small town in the Midwest. A tornado struck last week, for the first time in over 30 years, and my office was destroyed.</em></p>
<p><em>I have insurance which will replace most of my office furniture and equipment, but the worst part was that my computer hard drive was destroyed, containing all of my client's information and contracts and at least five years' worth of e-mails. There is no way I will be able to replace that information without spending thousands of dollars on a 'data recovery service.'</em><br /><em> </em><br /><em>Going forward, what are some of the things I should be doing to prevent this from happening again?"</em><br /> <br />In a word, "ouch."<br /> <br />According to the U.S. Department of Labor, 40 percent of all businesses that experience a "disaster" go out of business within the next five years. In this data-driven age, you need to take steps to protect your critical, irreplaceable information.<br /> <br />Much has been written about the need for businesses to have a "disaster recovery plan," but many small businesses don't have the time or the money to put a full protection program into place.<br /> <br />If that's your situation, here is what you need to do.<br /> <br />Be Redundant. We know our computer data is intangible - you cannot see it, touch it or smell it. But your data DOES have a very specific location. It lives on a computer server somewhere - either the hard drive on your desktop PC or laptop, or someone else's computer server somewhere in "the cloud." Either way, if something happens to that server, your data could be destroyed.<br /> <br />The key to protecting your data is to make sure it exists on two or more servers at the same time - what computer specialists call "redundancy." That way, if disaster strikes one server, the "copy" on the other server still exists and can be accessed.<br /> <br />There are online services such as Carbonite (<a href="http://www.carbonite.com" target="_blank">www.carbonite.com</a>) that will automatically back up your computer hard drive once each hour, day or week and create a duplicate copy of your data on a remote server.<br /> <br />The same goes for your Website content. Whenever my computer pro updates the content on any of my Websites, I always ask for a backup CD or DVD of the entire site. It costs an extra $20 to $30, but this way if my Internet service provider's server is knocked out, I can contact another ISP and get the entire Website back up in less than 24 hours.<br /> <br />There are also services such as FinalHost.com, and software products such as Wget (<a href="http://www.gnu.org/software/wget" target="_blank">www.gnu.org/software/wget</a>), that will help you create duplicate websites (called "mirror sites") and update them regularly.<br /> <br />Backup, Backup, Backup. Most of us know enough to back up our "My Documents" folder at least once a week, or once a month. But that's not nearly enough. If you use Microsoft Office, you should be backing up all your Word, Excel, and PowerPoint files at least once a day. <br /> <br />If you are 100% dependent upon e-mails (and who isn't these days?), these should be backed up daily as well. If you use Microsoft Outlook, it's fairly easy to "send" all of your e-mails to a backup CD - the process takes about five minutes. I would recommend you do a "cumulative" backup (all of your e-mails) instead of an "incremental" backup (just the e-mails that have accumulated since the last backup) - that way if your computer crashes you won't have to download multiple backup files.<br /> <br />Even if you use a "cloud" e-mail service such as Gmail, Hotmail or Microsoft Network, you should back up your e-mails at least once each week using a backup utility designed specifically for that "cloud" service: for example, Gmail-Backup (<a href="http://www.gmail-backup.com" target="_blank">www.gmail-backup.com</a>) for Gmail users, or Thunderbird (<a href="http://www.mozillamessaging.com/en-US/Thunderbird" target="_blank">www.mozillamessaging.com/en-US/Thunderbird</a>) for Hotmail users. <br /> <br />Don't forget your smartphone: search "[the name of your phone] backup utility" for a list of backup solutions for your mobile data.<br /> <br />Separate Your Backups. The dumbest backup mistake is to leave the backup CD or DVD next to your computer. If your backup CD or DVD is in the same place as your computer hard drive, they will likely both be destroyed if a disaster strikes.<br /> <br />Keep your backup CDs or DVDs at home, in a safe deposit box, or in some other remote location. If you have time, make two backup CDs or DVDs and keep each of them in separate locations, as the likelihood of a disaster striking all three locations at the same time is extremely low.<br /> <br />Find the Time. Yes, all of this takes time, a few minutes a day. But it may possibly save your business. Pick a time each day, such as 12 noon, stop whatever you're doing, and back up your hard drive. Don't wait until the end of the business day to back up. You will be tired, or rushing to get out the door, and the temptation to put this vital chore off until the next day will be tough to resist.<br /> <br />Cliff Ennico (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of "Small Business Survival Guide," "The eBay Seller's Tax and Legal Answer Book" and 15 other books. COPYRIGHT 2012 CLIFFORD R. ENNICO. Permission granted for use on DrLaura.com</p>
Staff
2012-03-12T17:35:00Z
Converting a Corporation into a Limited Liability Company
Staff
http://www.DrLaura.com/b/Converting-a-Corporation-into-a-Limited-Liability-Company/-980946974863890745.html
2012-02-21T21:22:00Z
2012-02-21T21:22:00Z
<p><strong>By Cliff Ennico<br /></strong><a href="mailto:crennico@gmail.com">crennico@gmail.com</a><br /><br /></p>
<p><em>"My two brothers and I have run a successful service business for over 20 years, which we run as a 'C' corporation.</em></p>
<p><em>When we started this business, the limited liability company (LLC) was not available as an option for small business. We thought several times about converting our business into an LLC, but the time just never seemed to be right.</em></p>
<p><em>My brothers and I are getting on in years, and have started to think about selling this business down the road when it's time for us to retire. Our SCORE counselor suggested we convert to an LLC now because it will be much easier to find a buyer and get a favorable price than if we remain a 'C' corporation. Is he right?"</em></p>
<p>The short answer is . . . maybe. </p>
<p>A service business like this one -- with few hard assets but lots of happy customers generating income from their service contracts -- is usually better organized as an LLC or a subchapter "S" corporation, so that profits and losses "pass through" to the owners and there is no "double taxation" of corporate income. <br /> <br />There are two ways you can sell a business - you can either sell the corporation's stock, or the corporation's assets. Most business sales are structured as sales of assets. If you sell a C corporation's assets, the purchase price will be taxed twice - once upon the closing of the sale, and a second time when you distribute the cash to yourselves as shareholders. With an LLC, the purchase price is taxed only once.</p>
<p>If you sell your stock in the corporation rather than assets, there won't be "double taxation" of the purchase price (the proceeds go directly to you), but you likely will have a much tougher time finding a buyer at the right price, as stock sales create significant legal and tax disadvantages for buyers and they may negotiate the purchase price more aggressively to compensate for that.<br /> <br />There are two ways you can convert your C corporation into an LLC:<br /> <br /><strong>Option # 1:</strong> You can dissolve your corporation, distribute all of the corporation's assets to the shareholders (you and your brothers), then form a new LLC and contribute all of the corporation's assets to the new LLC.<br /> <br /><strong>Option # 2:</strong> You can form a new LLC and then merge the old corporation into the LLC (note: this option is not available in all states).<br /> <br />Under either option, you will be dissolving and liquidating your corporation, and you and your brothers will have to pay tax (at ordinary income rates) on the "built-in gain" from any of the corporation's assets that have appreciated in value since you started the business over 20 years ago. That's likely to be a very large number, and you will have to pay the entire tax when you file your final corporate tax return next March 15. <br /> <br />If your business has borrowed money from a bank, you may have to get the bank to approve the LLC conversion. If your business rents retail or commercial space, you may have to get your landlord's consent as well. Also, there's the pain of notifying all of your customers and suppliers of the change and reminding them to write their checks out to the new LLC.<br /> <br />Still, despite the tax and other headaches, converting to an LLC now may save you tons of money in taxes over the long run because your income from the business won't be "taxed twice," you will have much more freedom to operate the business the way you like, and (yes) it will probably be easier for you to find a buyer for this business when the time comes.<br /> <br />You will need a really good tax advisor to help you with this. When interviewing accountants, be sure to ask if he or she has any experience with "corporate reorganizations" in your state, and be sure to ask the following questions:</p>
<ul>
<li><br />whether you will be able to use the same federal and state tax ID numbers after converting to an LLC (you have 20-plus years of excellent credit history, and you do not want to lose that by forming a new company and "starting from scratch");</li>
<li><br />if your business has net operating loss carryforwards (NOLs), whether you will be able to preserve them after converting (generally, you lose NOLs when there is a "change of control" of your company);</li>
<li><br />whether you should hire a professional advisor to "value" your firm so that you can rely upon independent professional advice if the IRS questions the amount of "built-in gain" your corporation reports on next year's tax return;</li>
<li><br />whether by converting in "stages" (i.e. forming the new LLC now and transferring the assets over time) you can spread the "built-in gains" tax over a period of years, making it less painful; and</li>
<li><br />whether your corporation qualifies for a subchapter "S" election, which will give you many of the benefits of an LLC conversion without the tax headaches.</li>
</ul>
<p> <br /><strong>Cliff Ennico</strong> (<a href="mailto:crennico@gmail.com">crennico@gmail.com</a>) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com" target="_blank">www.creators.com</a>. COPYRIGHT 2012 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM Permission granted for use on DrLaura.com</p>
Staff
2012-02-21T21:22:00Z
How to Be Your Own Internet Publicist
Staff
http://www.DrLaura.com/b/How-to-Be-Your-Own-Internet-Publicist/-493797594931958251.html
2012-01-03T15:50:00Z
2012-01-03T15:50:00Z
<p>By Anne Leedom<br /><a href="http://www.netconnectpublicity.com" target="_blank">www.netconnectpublicity.com</a></p>
<p>As the economy continues to struggle I see an ongoing tragedy in the business world. Professionals who have valuable and significant products and services to offer aren't able to create exposure and demand due budget constraints. Fewer people have a strong budget to get their information out in a consistent and meaningful way. </p>
<p>When most people speak with a publicist they are saddened to learn the process takes time and ultimately, money and therefore they are left to figure out how to conduct their own PR outreach in the hope of creating some income to further their dreams.</p>
<p>Acting as your own publicist can be very effective and far more affordable, assuming you have the time to commit to the process. All forms of advertising and PR take time to create the desired impact under the best of circumstances. When you add in the learning curve and the time it takes to create relationships with targeted websites, patience will need to be the first ingredient in your recipe for success.</p>
<p>Let's review some of the factors to take into consideration before you make a final decision as to how you would like to proceed.</p>
<p><strong>1. Create an effective environment.</strong> Working in a specific place at set times of the day can help you build the focus required to learn and implement the new skills you are about to acquire. Removing as many distractions as possible will be very helpful in keeping you organized and allow you to follow through. These are two traits all good publicists must possess.</p>
<p><strong>2. Create a plan.</strong> Start by being your own client and ask yourself the crucial questions to develop an effective strategy. Who is your real target audience? What are your revenue models, short and long term? Does your website mirror your branding, invite people to sign up and to ultimately purchase your products and services with ease? What is your message that will distinguish you from others in your field and which websites will best represent that message for you? Moving forward with a well thought out plan is a critical step to being successful.</p>
<p><strong>3. Develop your presentation materials.</strong> When you reach out to an online editor the last thing you want to do is to make them feel they are getting the same package several other editors are receiving. Create relationships with editors one-on-one. Review their site in detail. Know what they want, both in terms of content and format and give them articles they can use quickly and without a great deal of editing. Offer them ideas on future content you would like to provide. The more you make their job easier and increase their credibility, the more they will want to utilize your work and promote you prominently in the process.</p>
<p><strong>4. Follow up...follow up...follow up. </strong> After you send your initial article and a BRIEF email introducing yourself, you will in many cases need to follow up within 2-3 days. Editors are very busy and often work with the people who care the most. Don't be afraid to send a very short email to follow up, confirm they received the piece and ask if they plan to use it. In addition, be sure and thank them once the content is posted. </p>
<p>Continue to build that relationship and get to know the editor. It's all about people....they are helping you, you are helping them, and ultimately you are both helping many others through your combined efforts.</p>
<p>Anne Leedom is the Founder of <a href="http://www.netconnectpublicity.com" target="_blank">Net Connect Publicity</a>, a premier online expert placement agency based in Northern California. In addition to her efforts as a publicist, Anne also publishes <a href="http://www.parentingbookmark.com/" target="_blank">www.parentingbookmark.com</a>, <a href="http://www.lifepalz.com/" target="_blank">www.lifepalz.com</a> and <a href="http://www.catchthelifebug.com/" target="_blank">www.catchthelifebug.com</a>. To learn more about Anne's coaching services for authors and experts contact her to discuss additional strategies on how to be your own publicist. Permission granted for use on DrLaura.com</p>
Staff
2012-01-03T15:50:00Z
California Settlement Changes Game for Internet Sales Tax
Staff
http://www.DrLaura.com/b/California-Settlement-Changes-Game-for-Internet-Sales-Tax/-761781743347987484.html
2011-11-14T20:16:00Z
2011-11-14T20:16:00Z
By Cliff Ennico<br /><a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com<br /></a>
<p>Thanks to a new law in California, the days of selling online without having to pay sales tax are numbered.</p>
<p>Since 2008, a number of states have attempted to impose their sales taxes on Internet commerce, most of which involves sales across state (and often national) boundaries. </p>
<p>States try to tax e-commerce in a number of ways, but the approach that's gotten the most publicity is the so-called "Amazon tax" adopted by New York, Rhode Island, Illinois, North Carolina and a couple of other states. In these states, Amazon.com, Overstock.com and other e-commerce platforms that allow small businesses to sell on their sites as "affiliates" are required to collect and remit state and local sales taxes if an affiliate sells more than a certain dollar amount to residents of that state each year (the annual threshold is normally $10,000 to $20,000, although it's only $5,000 in Rhode Island).</p>
<p>The theory is that affiliates of e-commerce platforms are "agents" of the platform, and therefore are subject to state "nexus" laws taxing out-of-state companies that operate through in-state employees or other "agents". Pretty creative, no?</p>
<p>The reaction to these laws has been straightforward - Amazon, Overstock and other affected retailers (eBay sellers are not considered "affiliates" of eBay so the tax isn't a concern for them) have simply terminated their affiliates in Amazon-tax states rather than comply.</p>
<p>Earlier this year, California attempted to join the fray (imposing a $500,000 threshold on sales by California-based Amazon affiliates), but Amazon fought back, spending more than $5 million to launch a public referendum to stop California's "Amazon tax" law and ban collection of sales tax on online sales in California. Rather than face a law banning taxes on Internet sales, California negotiated a settlement with Amazon which was signed into law.</p>
<p>Under the terms of the settlement:</p>
<p style="padding-left: 30px;">* Amazon will drop its referendum challenge;</p>
<p style="padding-left: 30px;">* California will defer enforcing its "Amazon tax" until September 15, 2012, and even then will enforce it only for Amazon affiliates who sell more than $1 million to California residents;</p>
<p style="padding-left: 30px;">* Amazon has pledged to create at least 10,000 full-time jobs and hire 25,000 seasonal employees in California by the end of 2015;</p>
<p style="padding-left: 30px;">* Amazon will reinstate its California affiliates, estimated to number between 10,000 and 20,000; and</p>
<p style="padding-left: 30px;">* California will forego any sales tax owed by Amazon affiliates for the period since the original "Amazon tax" law was passed.</p>
<p>So far, pretty uncontroversial.</p>
<p>But here's the kicker: as part of the settlement, Amazon and other online merchants are supposed to lobby Congress to find a national solution to the out-of-state Internet sales tax collection issue. If Congress fails to act on nationwide legislation by September 15, 2012, California's "Amazon tax" will kick back in, and Amazon presumably will not be able to fight it at that time, having agreed to the settlement.</p>
<p>State and local governments are prohibited from imposing sales and other state and local taxes on interstate commerce under the "commerce clause" of the U.S. Constitution, as interpreted by a 1992 United States Supreme Court ruling (pre-dating the Internet, you will note). An act of Congress can overrule that Supreme Court ruling, and in each of the past few Congresses somebody has introduced a bill to do just that. The bills have generally gone nowhere, due to intensive lobbying by Amazon and other e-commerce platforms.</p>
<p>But now that Amazon has agreed to join brick-and-mortar retailers and lobby for Internet sales tax legislation, there's a much better chance such a bill will pass and sales taxes not only on Internet commerce, but on all interstate sales transactions, will become the law of the land.</p>
<p>Such a bill was introduced in July of this year - the "Main Street Fairness Act." This bill would overrule the 1992 Supreme Court ruling and enable the 21 states that have voluntarily adopted the Streamlined Sales and Use Tax Agreement (<a href="http://www.streamlinedsalestax.org" target="_blank">www.streamlinedsalestax.org</a>) - a grassroots effort to simply and standardize sales tax regulations in an effort to encourage taxation on interstate sales -- to implement and enforce the Agreement on sales between member states. </p>
<p>Online sellers need to keep their eye on developments, but I wouldn't panic right now.</p>
<p>First, the September 15, 2012 deadline is sure to be extended, as it comes right before the 2012 Presidential election and Congress will be distracted by politics. </p>
<p>Second, even if Congress passes the Main Street Fairness Act before then, only the states that have adopted the Streamlined Sales and Use Tax Agreement will be immediately affected. Other states will have to pass legislation either adopting the Agreement or otherwise meeting the Main Street Fairness Act's mandates. That will take time.</p>
<p>Having said that, if you are selling online and haven't been collecting sales tax on your "in-state" sales, or your sales to other states in which your business has a physical presence or "nexus" (such as an office or warehouse), you need to start doing so now. Ignorance of the law is no excuse.</p>
<p> <br /><em>Cliff Ennico</em><em> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of “Small Business Survival Guide,” “The eBay Seller’s Tax and Legal Answer Book” and 15 other books. Permission granted for use on DrLaura.com</em></p>
Staff
2011-11-14T20:16:00Z
Can You Punish Employees for Things They Say on Facebook?
Staff
http://www.DrLaura.com/b/Can-You-Punish-Employees-for-Things-They-Say-on-Facebook/706817129960641769.html
2011-11-07T19:25:00Z
2011-11-07T19:25:00Z
By Cliff Ennico<br /><a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com<br /></a>
<p>“I run a small advertising agency with about 10 employees. Given the nature of our work, our employees spend much of their time online, especially on the social media websites including Facebook, Twitter, and LinkedIn. We have found these websites a tremendous source of revenue, as all of our clients are looking to develop advertising strategies for these sites.<br /><br />So it came as a shock when I looked at an employee’s Facebook page – she had posted pictures of her new baby and I wanted to congratulate her – and saw several postings from her saying what an impossible boss I was (I was described as a ‘witch’ in one posting), and how unreasonable my demands on her time were in light of her new baby. She also went on to describe, in considerable detail, some of the projects she was working on in our office, including some information that I felt was confidential to our client.<br /><br />In looking further into this, I learned that at least some of these postings were made from one of our office computers, during the workday when this employee should have been working on client projects.<br /><br />Needless to say, I am furious about this, and want to bring it up with my employee. But I want to make sure I am on solid legal grounds before I do anything. Any thoughts?”<br /><br />Congratulations! You have stumbled into probably THE hottest issue in labor and employment law right now.<br /><br />As you correctly point out, the proliferation of social media websites such as Facebook are a double-edged sword: they are a great way to obtain information about someone easily and at low cost, but they create huge opportunities for abuse both by employers and employees.<br /><br />It is tempting, EXTREMELY tempting, to discipline this employee for her online remarks, which clearly are not consistent with the “duty of loyalty” any employee owes to her employer. But before you take any action, you need to talk to an employment law specialist, as the (extremely few) courts that have addressed this problem have taken the employee’s side.<br /><br />A number of state and federal laws prohibit employers from monitoring their employees’ online behavior, and/or making use of information obtained from that monitoring to discipline employees. For example:
<p style="padding-left: 30px;">o the federal National Labor Relations Act afford both nonunion and unionized employees the right to engage in protected “concerted activity,” which includes the right to criticize their employers and to discuss their discontents with co-workers and outsiders;<br /><br />o federal and state “whistleblower” laws may protect employees who complain about working conditions affecting public health and safety or violating federal antifraud laws;<br /><br />o federal privacy protections may extend to Facebook postings made from your employee’s personal computer or e-mail account (as opposed from the employer’s computer or e-mail account, which is a “grey area” in the law right now);<br /><br />o many states prohibit employers from regulating employee political activities and affiliations or influencing employees’ political activities; and<br /><br />o at least four states (California, Colorado, North Dakota and New York) prohibit employers from taking adverse employment action against an employee or applicant based on legal off-duty activities (for example, an individual over 21 years of age who posts pictures of himself intoxicated at a party), and sometimes illegal off-duty activities (the same individual smoking marijuana).</p>
In this case, there’s also the chance that any action against this employee will be viewed as discrimination against her because of her “new Mom” status.<br /><br />The right way to proceed here is for your agency to adopt a “social media policy”, circulate it to all your employees, and schedule an “all hands” meeting to review the policy, with specific examples of prohibited behavior, at which you will state clearly that employees should review all of their social media pages and “scrub” any improper information (especially any information about a particular client project) that could expose your agency to legal liability.<br /><br />Your social media policy should:
<p style="padding-left: 30px;">o warn employees that they will be disciplined, and possibly fired, if they post proprietary and confidential company or client information, or make discriminatory or defamatory statements or sexual innuendos about the agency, co-workers, management, customers or vendors (sorry, but the “witch” comment probably won’t be enough);<br /><br />o advise employees that any blogs or social media postings must include a disclaimer that “any opinions expressed are the employee’s own and do not represent the company’s positions, strategies or opinions”; and<br /><br />o remind employees to conduct themselves professional both on and off duty.</p>
For a sample “social media policy” used by larger companies, see <a href="http://humanresources.about.com/od/policysamplesb/a/blogging_policy.htm" target="_blank">http://humanresources.about.com/od/policysamplesb/a/blogging_policy.htm</a>. As federal and state laws are “all over the place” on this issue right now, I would recommend you hire an employment law specialist to draft your policy (and perhaps also sit in on the employee meeting). Most attorneys will charge between $1,000 and $2,000 for this service, and it’s well worth the expense.<br /> <br /><em>Cliff Ennico</em><em> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of “Small Business Survival Guide,” “The eBay Seller’s Tax and Legal Answer Book” and 15 other books. Permission granted for use on DrLaura.com</em></p>
Staff
2011-11-07T19:25:00Z
How to Sell Successfully on eBay - Advice from the Pros
Staff
http://www.DrLaura.com/b/How-to-Sell-Successfully-on-eBay---Advice-from-the-Pros/-549161458885787571.html
2011-10-10T17:00:00Z
2011-10-10T17:00:00Z
By Cliff Ennico<br /><a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com<br /></a>
<p>Recently, I gave a presentation on Internet sales taxes at the eighth annual eBay Radio party in Las Vegas – a confab of some of the top eBay sellers in the United States and Canada.</p>
<p>For those of you who don’t know, eBay has its own Internet radio station with a variety of programs to help people become more proficient at selling stuff on eBay. The URL is <a href="http://groups.ebay.com/forum/Ebay-Radio-Broadcasts/Welcome/1278" target="_blank">http://groups.ebay.com/forum/Ebay-Radio-Broadcasts/Welcome/1278</a>.</p>
<p>During the conference I tracked down about 30 of the top eBay sellers and e-commerce experts in the room and asked them the same question: “In your opinion, what is THE secret to selling successfully on eBay, or indeed anywhere online?”</p>
<p>Here are their answers:</p>
<p>“Like they say in the ‘Godfather’ movies, it’s business, not personal; when you sell on eBay, run it like a business.“ – Danni Ackerman, owner of the “Udderly Good Stuff” eBay store (<a href="http://stores.ebay.com/Udderly-Good-Stuff" target="_blank">http://stores.ebay.com/Udderly-Good-Stuff</a>).</p>
<p>“Flexibility – being nimble enough to change your product mix and your marketing mix in light of new competitors or other changes in your selling environment.” – Betsie “eBetsy” Bolger, Content Manager for eBay Radio (<a href="http://www.voicemarketing.com" target="_blank">www.voicemarketing.com</a>).</p>
<p>“Never give up; never stop learning.” – Marcia Collier, author of the “eBay for Dummies” series and “The Ultimate Online Customer Service Guide” (<a href="http://www.coolebaytools.com/" target="_blank">coolebaytools.com</a>).</p>
<p>“If you’re selling antiques and collectibles, really know your stuff.“ – Rose Downes, owner of “The Fuzzy Lobster” eBay store (<a href="http://stores.ebay.com/The-Fuzzy-Lobsters-Inlet" target="_blank">http://stores.ebay.com/The-Fuzzy-Lobsters-Inlet</a>).</p>
<p>“Don’t hit every thrift store in town; pick your favorites, hit them at least twice a week, and really get to know the owners because if they like you they will give you a ‘heads up’ when they get really cool stuff.“ – Lynn Dralle, author of “The 100 Best Things I’ve Sold on eBay” (<a href="http://www.thequeenofauctions.com/" target="_blank">thequeenofauctions.com</a>).</p>
<p>“Do not accept ‘no’ as an answer.“ – Janelle Elms, founder and CEO of the Online Success Institute (<a href="http://www.osirockstars.com/" target="_blank">osirockstars.com</a>).</p>
<p> “Ship your stuff as fast as possible after it sells.“ – Bryan Goodman, owner of the “Mr. Bigfoot” eBay store (<a href="http://stores.ebay.com/Mr-Bigfoot" target="_blank">http://stores.ebay.com/Mr-Bigfoot</a>).</p>
<p>“Sell only what people want, at a price they are willing to pay.” -- “Grannie Annie,” owner of the Grannie Annie’s Little Grass Shack eBay store (<a href="http://stores.ebay.com/Grannie-Annies-Little-Grass-Shack" target="_blank">http://stores.ebay.com/Grannie-Annies-Little-Grass-Shack</a>).</p>
<p>“Know your numbers; your gross sales are important, but your operating margin is a lot more important.“ – Jim “Uncle Griff” Griffith, host of eBay Radio and author of “The Official eBay Bible” (<a href="mailto:griff@ebay.com">griff@ebay.com</a>).</p>
<p>“Do everything you can to help the customer find you using great keywords in your eBay listing titles.“ – Cindy Hamilton, owner of the TwirlPlanet eBay store (<a href="http://stores.ebay.com/Twirl-Planet" target="_blank">http://stores.ebay.com/Twirl-Planet</a>).</p>
<p>“Consistency in presentation.“ – Melinda Jackson, host of “The River, the Ranch and the Bay” Internet radio show (<a href="http://therivertheranchandthebay.com" target="_blank">therivertheranchandthebay.com</a>).</p>
<p>“Patience, and a little good liquor.“ – John “ColderICE” Lawson, CEO of 3<sup>rd</sup> Power Outlet (<a href="http://3rdpoblogs.com/colderice" target="_blank">3rdpoblogs.com/colderice</a>).</p>
<p>“Research and education; the more you know, the better you are.“ – Christopher Lesley, owner of “The Golden Pineapple” eBay store (<a href="http://stores.ebay.com/The-Golden-Pineapple-Shoppe" target="_blank">http://stores.ebay.com/The-Golden-Pineapple-Shoppe</a>).</p>
<p>“Never skimp on ‘void fill’ when shipping your eBay items; you can use packing peanuts, bubblewrap, air pillows, paper or anything else, but be generous and fill every nook and cranny.“ – Robin LeVine, co-owner of the “BubbleFast” eBay store (<a href="http://stores.ebay.com/Bubblefast" target="_blank">http://stores.ebay.com/Bubblefast</a>).</p>
<p>“Always keep on top of eBay’s changes.“ – Debbie Levitt, founder of the As Was website design and business consulting firm (<a href="http://www.aswas.com/" target="_blank">http://www.aswas.com/</a>).</p>
<p>“When you’re selling antiques and collectibles, condition is key; even in a tough economy, people will still buy items in mint or near-mint condition.“ – April Peavey, owner of “My Vintage Generation” (<a href="http://www.myvintagegeneration.com" target="_blank">www.myvintagegeneration.com</a>).</p>
<p>“Working capital is a revenue-generating asset; use it to make money.“ – Kathryn T. Petralia, co-founder of online asset-based funding source Kabbage.com (<a href="http://www.kabbage.com/" target="_blank">http://www.kabbage.com/</a>).</p>
<p>“Patience; when you sell computer parts to businesses, it takes a while for the customer to make up its mind to buy, and they ask tons of questions.” – “Postie,” owner of the Fat Free Parts eBay store (<a href="http://stores.ebay.com/Fat-Free-Parts" target="_blank">http://stores.ebay.com/Fat-Free-Parts</a>).</p>
<p>“When taking photographs for your eBay listings, look at the ‘histogram’ on your digital camera; it will tell you if you’re overexposed or underexposed.“ – Cindy Shebley, co-author of “The eBay Marketing Bible” (<a href="http://www.websellerscircle.com/" target="_blank">http://www.websellerscircle.com/</a>).</p>
<p>“No matter what happens on eBay, keep a positive outlook; don’t let negative buyers get you down.“ – Kat Simpson, co-host of the “eCom Connections” Internet radio show (<a href="http://www.ecomconnections.com/" target="_blank">http://www.ecomconnections.com/</a>).</p>
<p>“Know when to sell your product; don’t be afraid to buy stuff that isn’t moving right now and wait until the opportune moment.“ – Jason Smith, owner of the “Tiki Pug Music” eBay store (<a href="http://stores.ebay.com/Tiki-Pug-Music" target="_blank">http://stores.ebay.com/Tiki-Pug-Music</a>).</p>
<p> “Always take the blame, even when it’s not your fault.” – “Tiffany,” owner of the Tiffany’s Designer Deals eBay store (<a href="http://stores.ebay.com/Tiffanys-Designer-Deals" target="_blank">http://stores.ebay.com/Tiffanys-Designer-Deals</a>).</p>
<p>“The customer is always right; even if the customer is wrong, the customer is always right.“ – Brandi Tolley, owner of the “Buy BIG from Brandi” eBay store (<a href="http://stores.ebay.com/Buy-BIG-from-Brandi" target="_blank">http://stores.ebay.com/Buy-BIG-from-Brandi</a>).</p>
<p> “You need to comply with the law and pay your taxes, but you don’t have to become a legal and tax expert; get a good local accountant and business lawyer and let them help you with the necessary paperwork so you can stay focused on building your business on eBay.” – Cliff Ennico, author of “The eBay Seller’s Tax and Legal Answer Book”, “The eBay Business Answer Book,” and this column (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>).</p>
<p><em>Cliff Ennico</em><em> (<a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of “Small Business Survival Guide,” “The eBay Seller’s Tax and Legal Answer Book” and 15 other books. Permission granted for use on DrLaura.com</em></p>
Staff
2011-10-10T17:00:00Z
Do You Qualify as a Female or Minority-Owned Business?
Staff
http://www.DrLaura.com/b/Do-You-Qualify-as-a-Female-or-Minority-Owned-Business/892551936116852315.html
2011-10-03T07:00:00Z
2011-10-03T07:00:00Z
By Cliff Ennico<br /><a href="http://www.succeedinginyourbusiness.com" target="_blank">www.succeedinginyourbusiness.com<br /></a>
<p>“My husband and I started a consulting business a while back, and we are finding ourselves getting more and more business from government agencies and nonprofit organizations. There’s only one problem: many of these people want to know if we are a ‘minority-owned enterprise’ or a ‘female-owned enterprise’ so they can comply with federal and state laws requiring that a certain percentage of their business be given to minority or female owned contractors.</p>
<p>I am female and own 51% of the business. My husband and I are both members of recognized minority groups. Is that enough to qualify?”</p>
<p>In a word, “no”.</p>
<p>In order to qualify as a minority or female owned enterprise, you need to be “certified” as such by a recognized organization that provides such “seals of approval” as part of their mandate.</p>
<p>For female owned businesses, the “gold standard” for certification is the Women’s Business Enterprise National Council in Washington, D.C. (<a href="http://www.wbenc.org/">www.wbenc.org</a>).</p>
<p>For minority owned businesses, the “gold standard” for certification is the National Minority Supplier Development Council in Washington, D.C. (<a href="http://www.nmsdc.org/">www.nmsdc.org</a>).</p>
<p>For purposes of NMSDC’s certification program, a minority group member is an individual who is a U.S. citizen who can provide documentation that he or she is at least 25% minimum Asian (either South Asian or Pacific Rim), Black, Hispanic or Native American.</p>
<p>Mere 51% ownership of a business by a woman or minority group member will not be enough to qualify for certification. The NMSDC also requires that minority group members control the management and daily operations of the business.</p>
<p>The WBENC certification criteria go further, requiring evidence that:</p>
<ul>
<li>The contribution of capital and/or expertise by the woman business owner is real and substantial and in proportion to the interest owned. </li>
<li>The woman business owner directs or causes the direction of management, policy, fiscal, and operational matters. </li>
<li>The woman business owner has the ability to perform in the area of specialty or expertise without reliance on either the finances or resources of a firm that is not owned by a woman. </li>
</ul>
<p>If you are both a woman and a minority group member, it is advisable to apply for both certifications as some government agencies will prefer one over the other.</p>
<p>What if you are not a woman or minority group member but are disadvantaged in other ways (for example, you are physically handicapped or live in a poverty-stricken neighborhood)? The U.S. Small Business Administration, as part of its Section 8(a) Business Development program, provides certification for “socially and economically disadvantaged firms”. While companies owned by minority group members are presumed to qualify, the program also admits individuals with a net worth of less than $250,000 (excluding ownership of the business and their primary residence) if they show that they are disadvantaged because of race, ethnicity, gender, physical handicap or “residence in an environment isolated from the mainstream of American society”. For more information, see <a href="http://www.sba.gov/content/8a-business-development-0">www.sba.gov/content/8a-business-development-0</a>.</p>
<p>To participate in the Small Business Administration’s HUB (Historically Underutilized Business) contracting programs, a business must be determined to be a "qualified HUBzone small business concern". A firm can be qualified if:</p>
<ul>
<li>It is small, </li>
<li>It is located in an "historically underutilized business zone" (HUBZone) </li>
<li>It is owned and controlled by one or more US citizens, and </li>
<li>At least 35% of its employees reside in a HUBZone. </li>
</ul>
<p>To find out if your business is located in a “HUBZone”, go to <a href="http://www.sba.gov/content/hubzone-maps">www.sba.gov/content/hubzone-maps</a>.</p>
<p>What if you are a disabled veteran? The law defines a disabled veteran as a United States military, naval or air service veteran with a service related disability of at least 10 percent.</p>
<p>For a firm to be certified as a “Disabled Veteran Business Enterprise,” it must be certified by the U.S. Veterans Administration (for details, see <a href="http://www.vetbiz.gov/">www.vetbiz.gov</a>), and meet the following legal requirements:</p>
<ul>
<li>It is a sole proprietorship or partnership at least 51 percent owned by one or more disabled veterans or, in the case of a publicly owned business, with at least 51 percent of its stock owned by one or more disabled veterans; a subsidiary which is wholly owned by a corporation in which at least 51 percent of the parent company’s voting stock is owned by one or more disabled veterans; or a joint venture in which at least 51 percent of the joint venture’s management, control and earnings are held by one or more disabled veterans. </li>
<li>One or more disabled veterans control the management and daily control of the daily business operations. </li>
<li>The disabled veteran(s) exercising management and control need not be the same disabled veteran(s) who own the firm. </li>
<li>It is a sole proprietorship, partnership or corporation with its home office located in the United States and is not a branch or subsidiary of a foreign corporation, firm or business. </li>
</ul>
<p>Some state and local governments have their own certification programs, and will require your business to be certified locally. MWBE Enterprises Inc. publishes an “insider’s how-to” guide containing all of the official instructions for certification in each state, along with application forms (available for $72.89 from <a href="http://www.mwbecertification.com/">www.mwbecertification.com</a>). The same firm also provides consulting services for companies seeking certification as minority or female owned enterprises (see <a href="http://www.mwbe-enterprises.com/services">www.mwbe-enterprises.com/services</a> for details).</p>
<p><em>Cliff Ennico</em><em> (www.succeedinginyourbusiness.com), a leading expert on small business law and taxes, is the author of “Small Business Survival Guide,” “The eBay Seller’s Tax and Legal Answer Book” and 15 other books. Permission granted for use on DrLaura.com</em></p>
Staff
2011-10-03T07:00:00Z
The Real
Staff
http://www.DrLaura.com/b/The-Real/10084.html
2011-09-12T07:00:00Z
2011-09-12T07:00:00Z
By Cliff Ennico<br /> <a href="http://www.succeedinginyourbusiness.com/" target="_blank">www.succeedinginyourbusiness.com</a><br /> <br /> You do realize, don't you, that so-called "reality shows" on television are not real?<br /> <br /> While the actors picked for these shows are not what we might call "Hollywood attractive," and therefore look more like real people than Hollywood actors, they are still actors, aren't they? And let's face it - reality is just plain boring most of the time, so the producers have to spice things up a bit to keep up their Nielsen ratings.<br /> <br /> We all love treasure hunt/buried treasure stories, and so the hot new reality show is "Pawn Star", about a real-life Las Vegas pawn shop. On a recent episode, a guy walks into the pawn shop with a first edition Ernest Hemingway, signed by the author. If you had something like that, would you ever bring it to a pawn shop?<br /> <br /> Remember the 1990s PBS series "Antiques Roadshow"? A poor schlep walks into the room with a beat-up old pocket watch to see how much it's worth. The dealer rolls his eyes, jumps out of his chair, and says "Omigod! See those initials 'G.W.' on the reverse? This is George Washington's pocket watch, which he lost at Valley Forge. The Smithsonian has been looking for this for decades - it's worth millions!" That sort of thing happens every day at your local antiques shop, I'm sure.<br /> <br /> Think of "Pawn Star" as "Antiques Roadshow" for a downsized economy. "American Pickers" is right behind: two guys in a rusty pickup truck rummaging through people's garbage and coming up with - gasp! - buried treasure.<br /> <br /> The thing that bugs me about all these shows is the "treasure hunters" don't give you any real advice for finding "real" buried treasure in your neighborhood.<br /> <br /> Time to get "really" real, folks. At a recent eBay sellers' convention I bumped into Jason Smith and Bryan Goodman, two eBay PowerSellers who have started "Thrifting With the Boys" (<a href="http://www.thriftingwiththeboys.com/" target="_blank">www.thriftingwiththeboys.com</a>). With offices in Las Vegas, Nevada (actually right down the road from the "Pawn Star" shop) and Boston, Massachusetts, the TWTB crew travels the country speaking at seminars, hosting "thrifting excursions", and teaching people how to find bargains and treasures at their local thrift shop.<br /> <br /> When these guys walk into a thrift shop, people notice. Think of a ZZTop tribute band without the guitars. Jason is six-foot-five, shaved head, hillbilly beard, built like an NFL linebacker, booming bass voice, and painted toenails. Despite that last detail, you call him "sir" if you know what's good for you.<br /> <br /> Bryan is beardless, has a bit more hair, and lacks a few inches in height. Clearly the "good cop" -- the guy who suggests you reduce the tag price on that red-white-and-blue Bicentennial bowling ball so his partner Jason doesn't get excited, if you catch my drift.<br /> <br /> Seriously, these are two of the sweetest guys I know in the eBay community, and they're quite a show. But they are deadly serious about turning other people's tax deductible donations into their customers' treasures.<br /> <br /> "There's really no drama in what we do, and we are not going to create it artificially," says Jason. "Like in that 'Pawn Star' episode where the guy drops and breaks something and they have to deal with the customer who's standing right there. I mean, come on - that just happened when the cameras were rolling?"<br /> <br /> The "Boys" show their customers - primarily eBay sellers and others looking for bargains they can then resell online at full market value - the ropes of dealing with thrift shop owners, getting the best deals (yes, you can negotiate even though the offered prices are rock bottom), how to time your trips so you arrive when the trucks are being unloaded (before your competitors show up), and learning to spot the "good stuff" in a disorganized pile of - ahem -- merchandise.<br /> <br /> "Sometimes the best stuff isn't what you would think, like the collectibles from 20 years ago or the vintage clothing," says Bryan. "It's the everyday stuff that people bought but never really used, and that can still be used today."<br /> <br /> Here are some tips for eBay sellers from "The Boys":<br />
<ul>
<li>Buy "Hard Rock Café" and "Harley Davidson" teeshirts - they must be authentic with original labels, but they do well on eBay;</li>
<li>Use a mobile phone application to scan books and other items at thrift stores to see their approximate value (why pay $2 for a book that sells for a penny on Amazon.com?); and</li>
<li>If you are buying to resell online, consider your time in packing the item -- big things can be costly to ship safely, so start with easy-to-ship items like clothing.</li>
</ul>
<br /> If you're in Boston or Las Vegas or at any eBay sellers' conference (for a schedule, see <a href="http://www.ebayonlocation.com/" target="_blank">www.ebayonlocation.com</a>), sign up for one of their thrift shop tours. If you're not, keep your eyes open on YouTube and other online video venues for their thrift shopping tips. <br /> <br /> The "Boys" are talking about a reality TV show, and I really hope that happens - watching these guys in action certainly beats watching Snooki do her nails.<br /> <br /> <em>Cliff Ennico (<a href="http://www.succeedinginyourbusiness.com/" target="_blank">www.succeedinginyourbusiness.com</a>), a leading expert on small business law and taxes, is the author of "Small Business Survival Guide," "The eBay Seller's Tax and Legal Answer Book" and 15 other books. </em> Permission granted by DrLaura.com.
Staff
2011-09-12T07:00:00Z
The Right Way to Advertise Your Securities? Don't!
Staff
http://www.DrLaura.com/b/The-Right-Way-to-Advertise-Your-Securities--Dont!/10053.html
2011-08-29T07:00:00Z
2011-08-29T07:00:00Z
<img src="/images/Site/Icons/150x150/work_at_home.jpg" alt="Icon" class="blog-icon-large" />
<p>By Cliff Ennico<br />
<a target="_blank" href="http://www.creators.com/">www.creators.com</a> <br />
<br />
</p>
<p>It pays to read your junk mail sometimes.<br />
<br />
Last week I received a postcard from a Broadway production company looking to raise money for a revival of a classic Broadway musical.<br />
<br />
The postcard proclaims "you too can be a Broadway producer" for as little as $1,000, and goes on to explain that the producer is seeking up to $5 million from the public to finance the revival, listing both a Website and a telephone number where people can get more details and pick up a copy of the producer's Offering Circular.<br />
<br />
The postcard goes on to list the states in which the offering is being made, and concludes with the following fine print: "No sale of any Units shall be made in any state unless the offering has been registered or is exempt in such state, an Offering Circular has been delivered to the investor before the sale, and the investor meets any applicable qualifications."<br />
<br />
Nice try, guys, but no cigar. This offering is illegal.<br />
<br />
The Broadway production company that sent me this postcard has fallen victim to one of the biggest misconceptions about securities law: namely, that "I can pitch my offering anywhere and to anyone I like, and I'm okay as long as I only accept investments from people who are qualified to buy my securities so that I fall within the definition of a 'private offering'."<br />
<br />
Frankly, that's the way the law should be. But it ain't where the law is today. <br />
<br />
When we speak of a "private" or "nonpublic" offering, we are talking about an offering of securities that doesn't have to be registered either with the U.S. Securities and Exchange Commission or with a state securities regulator. Generally, to qualify as "private," an offering must meet two conditions.<br />
<br />
First, it cannot be made "to the public" (i.e. every Tom, Dick and Jane) but only to certain "private" individuals - people who, by their extensive knowledge, wealth or sophistication in financial matters do not need the protection of the securities laws. By this standard, the Broadway producer's postcard is probably okay because it clearly states that only certain people will be allowed to buy in to the production (these people are not specified, but I'm assuming the producer or its attorneys will screen people to make sure they meet the SEC and state law criteria).<br />
<br />
But then there's the second condition: that the offering cannot be made "publicly" - in a way or manner that is likely to attract unsophisticated people to an offering of securities they can't handle. <br />
<br />
The federal securities regulations make it clear that any offering that is made via a "general solicitation or general advertisement" cannot qualify as a private offering, even if the only people who respond are the "right sort" of people (what the SEC calls "accredited investors"). The producer's postcard was clearly sent to thousands of people in the greater New York City area, whose names appeared on a mailing list the producer bought somewhere. If that isn't a "general solicitation", I don't know what is.<br />
<br />
Now, it may be possible that the producer has registered its offering with the SEC and with the state securities regulators in each state listed on the postcard where investors are being solicited. If they have taken the time to do that, and paid the cost of doing so, then the postcard offering is perfectly legal. A public offering of securities, as opposed to a private offering, may be promoted just about any way the issuer of the securities wishes.<br />
<br />
If the producer hasn't registered with the SEC and each state in which their "offerees" (recipients of the postcard) live, however, they have committed a major boo-boo under the securities laws and will be required, at the very least, to withdraw the offering and refund any money investors may have paid them.<br />
<br />
Because this is a Broadway production, the producer will also need to take into account New York's Theatrical Syndication Financing Act, Article 3 of the N.Y. Arts and Cultural Affairs Law (a copy of which can be found at <a href="http://www.ag.ny.gov/bureaus/investor_protection/theatrical_syndications.html" target="_blank">www.ag.ny.gov/bureaus/investor_protection/theatrical_syndications.html</a>. This statute requires that very specific disclosures be made to people who want to become Broadway "angels" - disclosures that are specific to theatrical productions and go way beyond the disclosure requirements of federal and state securities laws.<br />
<br />
Could the producer have done this the right way by merely listing the offering on its Website, for example by a link saying "to become an investor in this show, click here"? After all, something that merely appears on a Website is not being "directed" at anyone in particular. <br />
<br />
It's a tough call, but I think the SEC's prohibition on "general advertising" is broad enough to include such a listing. Since anyone can look at the Website, anyone can link on the link and become an "offeree" even if they don't ultimately buy the securities. <br />
<br />
The bottom line is that whenever you pitch investments in your company to people you don't know personally (and well), the securities laws come into play. Get the right legal advice before you mail that postcard.<br />
<br />
Cliff Ennico (<a href="mailto:crennico@gmail.com">crennico@gmail.com</a>) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a target="_blank" href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2011 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission granted by DrLaura.com.</p>
Staff
2011-08-29T07:00:00Z
Finding "Satisfaction" as an Entrepreneur Even When "You Can't Always Get What You Want"
Staff
http://www.DrLaura.com/b/Finding-Satisfaction-as-an-Entrepreneur-Even-When-You-Cant-Always-Get-What-You-Want/10025.html
2011-08-22T07:00:00Z
2011-08-22T07:00:00Z
<img src="/images/Site/Icons/150x150/work_at_home.jpg" alt="Icon" class="blog-icon-large" />
<p>By Cliff Ennico<br />
<a target="_blank" href="http://www.creators.com/">www.creators.com</a> <br />
<br />
</p>
It's sum . . . sum . . . summertime. Time to throw away the business books and do some brainless "beach reading".<br />
<br />
Except when you write a small business column, you see entrepreneurial advice in just about any book you pick up. It goes with the territory. Truth is, you can get business lessons from just about anyone in any field.<br />
<br />
So just yesterday I finished reading the autobiography of one of the great entertainment industry entrepreneurs of the last century - the cofounder of a successful organization that will be celebrating its 50th anniversary next year after having earned billions worldwide.<br />
<br />
His name is Keith Richards. Yep, him. The lead guitarist of the Rolling Stones, the world's most successful (and longest-lived) rock band. Most people don't think of Richards as an entrepreneur, but he deserves the title even though (let's face it) he's had a lot more fun building his empire than most entrepreneurs do.<br />
<br />
While a very entertaining read (Richards is surprisingly articulate, and remembers a lot more about "what actually happened" than you might think), Richards' life story contains some powerful lessons for entrepreneurs. For example:<br />
<br />
<strong>You Start Out Where the Market Is, Then Build on That. </strong> Richards says the Stones didn't set out initially to be the world's greatest rock band. Their objective was much more modest: "to be the best R&B band in London." Britain in the late 1950s and early 1960s was crazy about American blues, and virtually all of the "British Invasion" bands started as blues bands. Most never evolved beyond that, but hey, you have to start somewhere, so you go where the demand is. Then you figure out how to do it better.<br />
<br />
<strong>It's All About Team Playership.</strong> According to Richards, the only time the Stones franchise ever suffered was when one of its members thought himself "bigger than the group" and tried to put himself out front at the expense of the others. First, the late Brian Jones in the 1960s. Then, Mick Jagger in the 1980s (more about that later).<br />
<br />
Although he was the driving force behind most of the Stones' greatest hits, Richards throughout the book acknowledges Jagger's talent, especially in coming up with lyrics, and steadfastly refuses to take credit for other band members' contributions.<br />
<br />
<strong>You Push Yourself to Do Whatever It Takes.</strong> The Stones' first manager insisted the band would have no future if it merely "covered" American R&B and rockabilly tunes. It needed original hits, but nobody in the band had written a song before. So the manager threw Richards and Jagger into a kitchen and told them not to come out until they had written a song. The result was "As Tears Roll By," and the realization that Richards actually could write songs. When putting together the "Exile on Main Street" album, Richards stayed up nine consecutive days and nights without sleep in order to get several of the tracks mixed perfectly.<br />
<br />
<strong>Enjoy Your Success in Moderation.</strong> "Keith Richards" and "moderation" in the same sentence? It's not as surprising as you may think. Richards is brutally candid about his decades of drug abuse and dependency, but spends a lot of time in "Life" demonstrating how he put limits on his habits and scrupulously avoided the excesses and mistakes that led many of his contemporaries (including Janis Joplin, John Belushi and Richards' close friend Gram Parsons of The Byrds) to death by overdose.<br />
<br />
<strong>Never Burn Your "Bridges to Babylon".</strong> In Richards' entire book there is hardly a single negative word about Mick Jagger, his other bandmates, or indeed anyone else. Even a Stones manager who ripped the band off shamelessly and whom the band sued repeatedly for unpaid royalties gets off easily as "the guy who did more than anyone else to make the Stones what they became, despite the price we had to pay for dealing with him".<br />
<br />
In the early 1980s Mick Jagger signed a three-record solo contract with Columbia Records without telling the other Stones about his plans - an act that Richards (and virtually everyone else) viewed as an act of betrayal to the band. In fact, the Stones did not record or tour from 1985 to 1989 while Jagger struggled to develop a distinctive sound without them.<br />
<br />
When Jagger's solo career ran out of steam, Richards and Jagger set aside their differences, put the Stones back together, and starting touring and recording again. The two men were not as close as they were before, but there were no recriminations, no apologies on either side, no dwelling on the past. Why? Because both realized they were worth more together than separate, and that the Stones franchise was simply too successful for either of them to abandon permanently. The business - or the music -- comes first.<br />
<br />
As anyone in the music industry can tell you, "what goes around, comes around" and you can't afford to make permanent enemies because you keep bumping into the same people over and over again. There will always be another "reunion tour" down the road, and you never know . . . that bandmate who stole your old lady on the last tour may be the only person alive who can explain that secret compartment in your guitar case to the customs authorities in Lower Slobbovia.
<p><br />
</p>
<p> <br />
Cliff Ennico (<a href="mailto:crennico@gmail.com">crennico@gmail.com</a>) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a target="_blank" href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2011 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission granted by DrLaura.com.</p>
Staff
2011-08-22T07:00:00Z
Six Sneaky Ways States Are Raising Small Business Taxes
Staff
http://www.DrLaura.com/b/Six-Sneaky-Ways-States-Are-Raising-Small-Business-Taxes/9864.html
2011-06-15T07:00:00Z
2011-06-15T07:00:00Z
<img src="/images/Site/Icons/150x150/work_at_home.jpg" alt="Icon" class="blog-icon-large" />
<p>By Cliff Ennico<br />
<a target="_blank" href="http://www.creators.com/">www.creators.com</a> <br />
</p>
It’s no secret state and local governments are hard up for money. Even with the economy improving somewhat, and tax revenues increasing, most American states right now are facing budget shortfalls. <br />
<br />
State and local governments are desperate to find new ways to raise revenue without doing the obvious (and honest) thing, which is to raise people’s taxes. Voting to raise taxes, especially during a recession, is a sure step to losing at the polls next November, and most politicians know that.<br />
<br />
Here are six sneaky, stealthy ways some state and local governments are raising taxes on small business in ways they hope won’t generate lots of adverse press coverage.<br />
<br />
1. <strong>Expanding Sales Taxes to Services.</strong> It used to be sales taxes applied only to the sale of “goods” – physical, tangible stuff.<br />
Not anymore.<br />
<br />
Over the last 20 years the fastest growth in small business startups has been in the service sector, not “brick and mortar” retail or manufacturing. So state governments are now expanding their sales taxes to services. In Connecticut, for example, the state legislature recently voted to have the state sales tax apply to yoga classes, even though most “education and training” oriented businesses are exempt from tax. <br />
<br />
Why yoga? Beats me. But I strongly suspect someone in the Connecticut legislature has been reading Laura Numeroff’s classic children’s book “If You Give a Mouse a Cookie”. If you tax yoga, then why should spinning classes be exempt? Maybe all gym-related classes should be taxed. And hey, what about health-oriented classes that take place outside of gyms . . . ? You get the idea.<br />
<br />
2. <strong>Taxing Online Sales.</strong> State and local governments have lost billions of dollars in sales tax revenue to e-commerce and online business generally, and they are desperate to recoup some of that lost income. It doesn’t help local “brick and mortar” trade groups lobby their legislators to fight what they perceive as “unfair competition” from online merchants who aren’t currently required to charge sales tax.<br />
<br />
A growing number of states have adopted “Amazon bills” requiring out-of-state businesses to collect and pay sales tax (and sometimes income tax too) on sales made to in-state residents if they either:<br />
<br />
<ul>
<li>target their marketing activities within the state (for example, by placing a banner ad on a website based within the state, or launching an e-mail blitz primarily to residents of a single state); and/or</li>
</ul>
<ul>
<li>sell a large volume of stuff to in-state residents (usually $10,000 to $20,000 in gross sales per year).</li>
</ul>
<br />
In response, Amazon, Overstock.com and other e-commerce platforms have refused to do business with “affiliates” located in some states that pass these laws.<br />
<br />
3. <strong>Taxing Other Out-of-State Businesses. </strong> If your business has a “physical presence” in another state, it will have to pay sales and income taxes in that state because it is said to have a “nexus” there. It used to be “physical presence” meant having an actual brick-and-mortar location within the state, but not anymore. Many states are expanding their definition of “physical presence” so even a temporary or ethereal presence in the state will be enough to trigger tax liability.<br />
<br />
4. <strong>Enforcing Use Tax Laws.</strong> In most states, you are required to pay a use tax whenever you buy something for your own consumption and don’t pay sales tax on it (for example, when you buy from an out-of-state retailer). At least, you’re supposed to. <br />
<br />
Most people don’t know about use taxes, and because of that ignorance many states are auditing their use tax laws more vigorously in the hopes of frightening people into compliance. <br />
<br />
5. <strong>Raising Individual Income Tax Rates.</strong> “Millionaire’s taxes,” or taxes on individuals or families who make $250,000 or more a year, are becoming popular in many states. The idea is there aren’t too many of these people around so the likely damage at the polls next November can be limited.<br />
<br />
What legislators forget is most small businesses are organized as “pass-through” entities such as limited liability companies (LLCs) and subchapter S corporations. Tax increases on “pass through” business owners go directly to their bottom line, and force them to cut back on their standard of living. Anyone who thinks those tax increases won’t be passed on to customers in the form of higher prices is kidding himself.<br />
<br />
6. <strong>Imposing or Increasing Fees for Government Services.</strong> Many state and local governments have taken a cue from banks and airlines by charging for services that used to be free, or raising fees on services that used to be relatively cheap.<br />
<br />
The Connecticut secretary of state’s office recently doubled the filing fees for corporation, LLC and other small business filings. So an LLC filing which used to cost $60 is now $120, a corporate filing that used to be $195 is now $385, and so forth, making incorporation prohibitively expensive for many small business owners, and discouraging business startups.<br />
<p >Cliff Ennico (<a href="mailto:crennico@gmail.com">crennico@gmail.com</a>) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a target="_blank" href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2011 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission granted by DrLaura.com.</p>
Staff
2011-06-15T07:00:00Z
Dealing With the "Trademark Bully"
Staff
http://www.DrLaura.com/b/Dealing-With-the-Trademark-Bully/9333.html
2011-04-26T06:19:00Z
2011-04-26T06:19:00Z
<img src="/images/Site/Icons/150x150/work_at_home.jpg" alt="Icon" class="blog-icon-large" />
<p>By Cliff Ennico<br />
<a target="_blank" href="http://www.creators.com/">www.creators.com</a> <br />
</p>
<p></p>
"I started an online business last year. We've had an amazing run so far, with over 10,000 unique hits every day on our website, and a 30% gross profit margin on sales of over $250,000 in our first year. Our site has been written up in some major magazines, and we are getting attention from industry bloggers who have rated our site very favorably.<br />
<br />
Maybe we have been getting too much attention . . .<br />
<br />
Last week we received a letter from a law firm in a faraway state representing a company we have never heard of, accusing us of infringing the company's trademark. Specifically, they are objecting to the use of one word in our company name, to which they claim they have exclusive trademark rights.<br />
<br />
The word is a very common one in the English language. We have checked the federal trademark registry online at <a href="http://drlaura.com/LinkClick.aspx?link=http%3a%2f%2fwww.uspto.gov%2f&tabid=124&mid=488" target="_blank">www.uspto.gov</a>, and no one has claimed either the single word or our entire company name as a trademark. In fact, we contacted a trademark lawyer when we first started the business, and he told us the name could not be trademarked by anyone because it was too descriptive of the type of merchandise we sell.<br />
<br />
We checked out the company that's complaining about our name, and, unfortunately, they are very big - a Fortune 1000 corporation with tons of money. Our attorney does not think this company has a valid claim, but he is suggesting we change our name to avoid a 'David and Goliath' type fight. Frankly we have put a lot of time and energy into building a successful brand, and are afraid of losing tons of business if we change our name now.<br />
<br />
Can this company get away with doing this?"<br />
<br />
One of the reason we love David and Goliath stories is because, in real life, Goliath almost always wins.<br />
<br />
What you are dealing with here is called a "trademark bully" - someone who sends out nasty, threatening letters to smaller companies with similar names ordering them to "cease and desist" using their names . . . or else.<br />
<br />
Sadly, like most schoolyard bullies, they are usually a lot bigger than you, and can pack a wallop even though they are not in the right. Even a frivolous lawsuit - one having no basis in law - can knock out a small business that can't afford the legal expenses to mount a proper defense.<br />
<br />
Still, there may be some hope.<br />
<br />
First, look at the letterhead of the law firm that contacted you. Where is it located? If it's in the state where the faraway company is located, they are probably sending out tons of these letters every week, and you may be able to get away just by ignoring it. If the letter is from a law firm in your home state or city, that's a lot more serious. It means the company has singled you out for special attention and has hired local counsel specifically to deal with you.<br />
<br />
Check out the size of the law firm as well - you can do this on legal referral websites such as <a href="http://drlaura.com/LinkClick.aspx?link=http%3a%2f%2fwww.martindale.com%2f&tabid=124&mid=488" target="_blank">www.martindale.com</a>. If it's a one or two person firm, they probably don't have the resources to mount a lengthy legal battle in a faraway state. A client of mine once received a "cease and desist" letter from a trademark bully's lawyers, and when I checked the firm's website, it stated very clearly that the firm did not do intellectual property or litigation work! If it's a "top 10" law firm with hundreds of lawyers with not enough work to do, however . . .<br />
<br />
Next, compare your business with the one the big company is engaged in. Many companies send these letters out to companies merely to "put them on notice" that they are being watched - as long as you are not engaged in the same or a similar business as the big company, it may be that nothing will come of it If that's the case, and you want to sleep better at night, talk to your trademark attorney about negotiating a "co-existence agreement" with the law firm that contacted you. A co-existence agreement allows you to use your current name without risk of a lawsuit as long as you stay out of the big company's industry. <br />
<br />
Lastly, contact the Government. The U.S. Commerce Department, in co-operation with the Trademark Office, is conducting a study on "the extent to which small businesses may be harmed by litigation tactics by corporations attempting to enforce trademark rights beyond a reasonable interpretation of the scope of the rights granted to the trademark owner", and is seeking input from small business owners who have been victimized by trademark bullies. For information on how to participate in the study, go to <a href="http://drlaura.com/LinkClick.aspx?link=http%3a%2f%2fwww.uspto.gov%2ftrademarks%2fbullies_survey.jsp&tabid=124&mid=488" target="_blank">www.uspto.gov/trademarks/bullies_survey.jsp</a>. Send a copy of your contribution to your representatives in Congress along with a copy of the cease and desist letter you received.<br />
<br />
As with a schoolyard bully, buddying up to someone even bigger than the bully is sometimes the best defense. And the Government is the biggest kid on the playground.
<p></p>
<p> <br />
Cliff Ennico (<a href="mailto:crennico@gmail.com">crennico@gmail.com</a>) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a target="_blank" href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2011 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM</p>
Staff
2011-04-26T06:19:00Z
Five Ways You Know You're Dealing with a Problem Client
Staff
http://www.DrLaura.com/b/Five-Ways-You-Know-Youre-Dealing-with-a-Problem-Client/9334.html
2011-04-19T06:22:00Z
2011-04-19T06:22:00Z
<img src="/images/Site/Icons/150x150/work_at_home.jpg" alt="Icon" class="blog-icon-large" />
<p>By Cliff Ennico<br />
<a target="_blank" href="http://www.creators.com/">www.creators.com</a> <br />
</p>
<p>"I've been running a small service business for a while now, and it seems like I have problems with every client these days.</p>
<p>Most don't pay on time - I have to remind them every month to pay their invoices, and a couple have stopped returning my phone calls altogether.</p>
<p >Other clients make unreasonable demands on me, asking me to do things I'm really not comfortable doing and threatening to sue me if I don't do 100% perfect work.</p>
<p >Others are just mean-spirited, obnoxious, and unpleasant to deal with.</p>
<p >What can I do to weed out my bad clients and focus all my attention on clients that are worth having?"</p>
<p >There is no law I'm aware of saying you must take every client who shows up on your doorstep. As long as you don't discriminate against folks (refusing to take on anyone because of their sex, race, age, religion or national origin), you can say "no" to clients that send out radioactive vibes, even if you can't put your finger on what's bothering you.</p>
<p >Once upon a time, it was easy to check out prospective clients. People lived in the same communities most of their lives, so by "asking around" you could find out that so-and-so is litigious, that what's-her-name has a reputation for lying and bouncing checks, and so forth.</p>
<p>But those days are gone. Today you are lucky if you even get to meet a client in person before you have to decide whether or not to take them on. You might be able to check them out online, but unless there is a "hate" webpage somewhere for people who have been burned by this person, you won't find out much.</p>
<p >So what do you do to keep problem clients at a minimum? </p>
<p >The short answer is: trust your gut.</p>
<p >Here are five signals you've got a problem client heading your way, and some suggestions for dealing with them when they show up:</p>
<p><strong><br />
</strong></p>
<p><strong>Asking Too Quickly About Fees.</strong> The client says, "I'm thinking about doing a certain project but before I make up my mind I need to have a budget for professional fees. Before you tell me anything else, what are your fees for this type of work?"</p>
<p>A client who begins his interview this way is, in my experience, only concerned about one thing: getting the cheapest price possible for your services. Unless you are the lowest cost provider in your area for this type of service, you are not going to get his business. Even if you are, if you take on this client he will ask for so many "bells and whistles" from you that you will end up doing the job for minimum wage.</p>
<p>With this person, quote the highest fee you can ethically charge for the service. He won't call back.</p>
<p><strong><br />
</strong></p>
<p><strong>Asking for "Work First, Money Later".</strong> A client who won't agree to an upfront advance on your fee, or who insists on paying you only when your services are completed, almost certainly will not pay you. </p>
<p>With this person, insist on full payment in advance (or an "evergreen" advance that must be kept current to ensure continued work), and a clause in your contract allowing you to stop services immediately if any invoice is not paid promptly on time. </p>
<p><strong><br />
</strong></p>
<p><strong>Mentioning Past Negative Experiences.</strong> The client says, "I've used three other attorneys in the past couple of years and they didn't do their jobs. Everybody I know says you're pretty good, so I'm hoping you'll give me a better experience than they did." Okay, not every professional is brilliant at what they do. But three negative experiences in such a short time? That's defying statistical probability. This is almost certainly a client who gives his professionals trouble, because he doesn't like or respect them, and you are next on his "hit list".</p>
<p>Ask this person for the names of his prior professionals, then call them and ask for a "reference" for this client.<br />
</p>
<p><strong>Directing the Conversation.</strong> The client interrupts you when you are trying to answer a question, refuses to let you ask questions, and otherwise insists on "controlling the flow" of the conversation. Such a person almost always is a bully who wants a lackey rather than a professional with independent judgment. <br />
</p>
<p>With this person, pretend you have a call on the other line and terminate the conversation, saying you will get back to him. Don't get back to him.</p>
<p><strong><br />
</strong></p>
<p><strong>Asking for "Grey Area" Ethical Behavior.</strong> Any client who asks you to do something that will put you in an awkward ethical position within your profession is a client that is not worth having. While it is true many clients do not understand the finer points of your ethical responsibilities, a client who insists you do something after you have told him you ethically can't, is a client you shouldn't have. </p>
<p >Tell this person you're too busy, and then refer him to your worst professional enemy. He and this client are made for each other.</p>
<p> <br />
Cliff Ennico (<a href="mailto:crennico@gmail.com">crennico@gmail.com</a>) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a target="_blank" href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2011 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM</p>
Staff
2011-04-19T06:22:00Z
Find Out About Mom-e-preneurs!
Staff
http://www.DrLaura.com/b/Find-Out-About-Mom-e-preneurs!/9335.html
2011-04-01T21:12:00Z
2011-04-01T21:12:00Z
<img src="/images/Site/Icons/150x150/work_at_home.jpg" alt="Icon" class="blog-icon-large" />From Nov. 2011:<br />
<p>My Dearest Dr. Laura, <br />
<br />
It was such a pleasure meeting you on Sunday at the Work At Home Business Expo. Words cannot express my adoration and the thankfulness in my heart for your endorsement by wearing our t-shirt. It was quite funny actually to instantly become the "cool kids" on the block as all the other exhibitors wanted to know who we were and how we pulled that off. </p>
<br />
Our mission is to offer support, resources and earning opportunities to the Work At Home Mom (WAHM). I know we need to iron out a lot of kinks but we were not looking to fully launch until 2011. We were at the Expo to gather interest. We have submitted a trademark application, filed our non-profit Articles of Incorporation, filed for our Tax ID and still need to complete our 501(c)3 application. We have finished our charter operational manuals for charter chapters and rules of conduct as well as support group by-laws. Our vision is to become a National organization with chapters across the country. <br />
<br />
In doing our research, we looked at various consulting and support group formats. Few were specifically for the WAHM and the one company who was, was not a non-profit offering the "sweat equity" aspect. Our goal is to sustain each mother's decision to work from home. We are offering monthly support group meetings with invited speakers talking to the group on a range of topics from legal protection of your business, infrastructure, insurance, marketing, advertising, accounting, etc... Because we want to affect the "whole" woman, some meetings will be about juggling it all, fitness, healthy meals, establishing systems, maintaining the romance, scheduling, stress management, the kids, etc... <br />
<br />
We will have monthly Support Group Meetings every 3rd Saturday from 10am to Noon at one of our mom's homes. We have lunch and child care. We will have a monthly mom's night out, play dates and date nights with the husbands. We will offer webinars, seminars, conferences, e-newsletters and tips to juggling it all. Most importantly, we will have a babysitting co-op. Our initial chapter had 11 women in it. On your weekend, you were on call for either that Saturday or Sunday; your choice. If another mom needed to meet a customer, get a report done, get a pedicure, go to the movie with her husband or simply take the ever elusive nap - if I am on call any and all moms can drop in and drop off the little ones. While it may be a sacrifice, my weekend would only come up once every 3 months. All moms are First Aid and CPR certified. <br />
<br />
Most mommy groups have a zero solicitation policy. We WANT our members to promote their businesses within, on our websites and among each other. It is with this support that she will be able to sustain her decision to work from home. <br />
<br />
For the SAHM who does not have the entrepreneurial spirit or does not have a vision as of yet, we want to bring in "life coaches" to assess her skill set and help guide her into a venture that would be most suitable for her. At some Support Group Meetings vendors like those at the WAHB Expo will be able to come in and have a captive audience and pitch their opportunity to our moms. <br />
<br />
We want a page on <a target="_blank" href="http://mom-e-preneurs.com/">our website </a>eventually that will be a "Hire My Mom" type page. You may be an executive secretary who has decided to stay home with your children but still type a million words a minute. A business will see that mom's skill set on our site and can hire her to do a temporary assignment from home; dictation, transcription, etc...<br />
<br />
Even still for the mom who is a SAHM and wants "milk money" we will have opportunity to earn money through quarterly chapter ventures where profits are split. <br />
<br />
Sweat Equity - because we are a non-profit, we want to ensure that we give back to the community. The mom-e who participates in a charitable cause in the community earns sweat equity. So, because she did a breast cancer walk, when she needs our support, she gets free labor or services. For example, we have a mom who is a caterer. If she has a big event, the rest of us moms will roll up our sleeves, become her prep chef, servers, etc... that is money she saves on staffing and recycles back into her family. <br />
<br />
I know it sounds like much but it is quite functional when practiced. <br />
<br />
I'd love to discuss this more with you or your team. <br />
<br />
Charisse McCoy<br />
<a target="_blank" href="http://mom-e-preneurs.com/">http://mom-e-preneurs.com/</a><br />
<p></p>
<p> </p>
<p></p>
Staff
2011-04-01T21:12:00Z
Launching Your New Business
Staff
http://www.DrLaura.com/b/Launching-Your-New-Business/9336.html
2011-03-22T06:30:00Z
2011-03-22T06:30:00Z
<img class="blog-icon-large" alt="Icon" src="/images/Site/Icons/150x150/work_at_home.jpg" />
<p> </p>
By Anne Leedom<br />
<a href="http://drlaura.com/LinkClick.aspx?link=http%3a%2f%2fwww.teenpalz.com%2f&tabid=124&mid=488" target="_blank">www.teenpalz.com</a><br />
<br />
<br />
You are excited...you have a great new service and you are ready to start putting it all together and make it work. However, when it comes to really putting all the pieces in place you aren't completely certain on how to start. So let's take a look at some of the most common mistakes people make and what you can do to avoid them.<br />
<br />
<ol>
<li><strong>Work with people who have a proven track record.</strong> All too often we want to work with friends or referrals and in many cases that means two things. You will be working with people who will not charge you huge fees, as they are 'helping you", and you will often be working with people who don't know your product, market and specific demographic to get you where you want to be. Invest the time and money to find at least a few people who have the track record and expertise to make the process as painless as possible. </li>
<li><strong>This isn't a team sport.</strong> When you involve other people in your project you need to be comfortable in the role of the boss. You have to make the hard choices and be comfortable calling the shots. It's great to get other people's input and expertise, but ultimately if you are in charge, you need to be in charge. People rely on your confidence and belief in your product or service and that strength is what will propel you toward your ultimate goal. </li>
<li><strong>Be willing to change directions.</strong> You can have a great road trip mapped out, but when the blizzard hits, only fools forge ahead through certain death. It might sting a little, but a shift in direction might make the difference between the success of at least part of your dream or the death of all of it. </li>
<li><strong>Celebrate small victories.</strong> You have worked hard. You probably haven't slept much and you have sacrificed in many ways to push toward your dream. When you accomplish even a small victory, take a break and breathe in the moment. Connecting to the success you achieve along the way is just as important as reveling in the big sense of accomplishment once you achieve your ultimate goal. You may or may not get there, but enjoying the journey is just as vital as enjoying the final reward. </li>
<li><strong>Keep your perspective.</strong> It's all about balance after all. Having a dream, fighting for it and seeing it through are rare and valuable traits. However, knowing when to turn it off, take a break or possibly even abandon the concept for a period of time may all be part of the bigger picture of the journey you are on. I've learned the hard way that no matter how much we may want something in this life, its ultimately not always up to us. So do your best, give it your all, then step back and late fate take its course. You always want to be on top of your project...don't let it get the best of you. </li>
</ol>
<br />
Anne Leedom is the Founder of <a href="http://drlaura.com/LinkClick.aspx?link=http%3a%2f%2fwww.teenpalz.com%2f&tabid=124&mid=488" target="_blank">TeenPalz.com</a> and <a href="http://drlaura.com/LinkClick.aspx?link=http%3a%2f%2fparentingbookmark.com%2f&tabid=124&mid=488" target="_blank">Parentingbookmark.com</a>. She is frequently quoted in national parenting and business publications. She lives in Northern California with her two daughters. For more information visit <a href="http://drlaura.com/LinkClick.aspx?link=http%3a%2f%2fwww.teenpalz.com%2f&tabid=124&mid=488" target="_blank">www.teenpalz.com</a>. Permission granted for use on DrLaura.com.<br />
<p> </p>
Staff
2011-03-22T06:30:00Z
Should You Promote Your Business on GroupOn?
Staff
http://www.DrLaura.com/b/Should-You-Promote-Your-Business-on-GroupOn/9337.html
2011-03-15T07:32:00Z
2011-03-15T07:32:00Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg" />
<p>By Cliff Ennico<br />
<a href="http://www.creators.com/" target="_blank">www.creators.com</a> <br />
</p>
"Social media" is the buzzword of the moment in online commerce, thanks largely to the success of "The Social Network," a movie about Facebook founder Mark Zuckerberg.<br />
<br />
Just about every e-commerce website is looking to add a "social media" element, and to find new ways to harness "the power of the collective" to create new business models.<br />
<br />
One recent ripple in the "social media' stream are online coupon promotion websites, the most popular of which are Groupon.com and SocialLiving.com.<br />
<br />
There are subtle differences between the websites, but most work like this:<br />
<br />
<ul>
<li>you, a merchant with stuff to sell, contact the site and offer a special deal to your customers - an "exclusive" deal not available anywhere else - usually at a steep discount (50% to 90% off list price is not uncommon);</li>
</ul>
<br />
<ul>
<li>the site posts your "deal", with a specific end-date (similar to an eBay listing), and people sign up for it;</li>
</ul>
<br />
<ul>
<li>if more than X people (you negotiate the "X" with the site) sign up for the deal by the end-date, you are committed to offer it to whoever signed up;</li>
</ul>
<br />
<ul>
<li>each purchaser pays by credit card and receives in return a "voucher" with your coupon, which they can then present for goods or services at your establishment,; and</li>
</ul>
<br />
<ul>
<li>you and the website split the proceeds (usually 50/50).</li>
</ul>
<br />
A great idea, no? Especially if you're a new restaurant, club, tanning salon or clothing boutique in town who wants to attract lots of Internet-savvy young customers who don't clip newspaper coupons or look at Val-Paks.<br />
<br />
But think about it . . . does it really make sense to offer your best stuff at 90% discount, and then split the few pennies left over 50/50 with a website?<br />
<br />
I can hear some of you saying "well, haven't small businesses always offered 'loss leaders' on certain merchandise to get customers into their stores?" And you would be right - selling the blue plate special to some people at cost (on Tuesday nights when nobody's in your restaurant anyway) might attract some new customers who would then order a bottle of wine with their dinner at full price.<br />
<br />
But historically, "loss leader" merchandise tends to be stuff that the seller wants to get rid of at any price - older, discontinued, "past expiration date" or out of style goods, or the menu items people order only occasionally. A restaurant's signature dish is not likely to be offered at cost on Friday and Saturday nights.<br />
<br />
If you are new to coupon promotions, be sure to use the "return on investment calculator" most of these websites offer to make 100% you won't lose money on the deal. Otherwise, why not? Groupon.com says they have 32 million registered users, even though their coupons are not available everywhere in the United States (I tried to find deals in my home state of Connecticut and couldn't find any).<br />
<br />
So are there any legal issues in using a "social media coupon" site?<br />
<br />
The short answer is "yes": the same rules that apply for paper coupon promotions. Every state has consumer protection laws for coupons, gift certificates and other sales promotion tools, and you are expected to know and comply with them - the websites won't help you with that.<br />
So, for example:<br />
<br />
<ul>
<li>laws regarding expiration dates (laws requiring a minimum expiration date or requiring merchants to redeem coupons as long as they are in business);</li>
</ul>
<br />
<ul>
<li>laws requiring merchants to maintain a sufficient stock of inventory to honor all outstanding coupons (or clearly state that they are redeemable only "while supplies last");</li>
</ul>
<br />
<ul>
<li>laws requiring that any limitations on redemption (such as "Tuesday and Wednesday evenings only" or "only one per customer") must be clearly stated on the voucher the customer buys; </li>
</ul>
<br />
<ul>
<li>laws forbidding the intentional sale of merchandise below cost, or prohibiting sales below the manufacturer's suggested retail price; </li>
</ul>
<br />
<ul>
<li>laws restricting or prohibiting discount promotions for alcoholic beverages; and</li>
</ul>
<br />
<ul>
<li>laws prohibiting merchants from restricting consumers' ability to transfer coupons once issued.</li>
</ul>
<br />
Before using a social media coupon site, ask to see their "merchant terms and conditions" or vendor contract and have a lawyer review these before launching your first promotion. Most "social media coupon" websites do not have these documents clearly posted for public view: you will need to speak to a sales representative and ask for them. <br />
<br />
If the website does not have a "merchant agreement" as such, here are some of the questions you should ask:<br />
<br />
<ul>
<li>can I change the terms of an offer before the end-date as long as I give notice of the change to people who have already bid and give them a chance to "opt out" of the offer?;</li>
</ul>
<br />
<ul>
<li>can I withdraw an offer before the end-date for any reason, even after some consumers have signed up, and what are the penalties for doing so?;</li>
</ul>
<br />
<ul>
<li>can I "cap" the number of vouchers to a certain number of individuals?;</li>
</ul>
<br />
<ul>
<li>how does the site protect merchants against unauthorized transfer, or purchases of vouchers by the same individual using multiple e-mail addresses?</li>
</ul>
<p>
<br />
Cliff Ennico (<a href="mailto:crennico@gmail.com">crennico@gmail.com</a>) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a href="http://www.creators.com/" target="_blank">www.creators.com</a>. COPYRIGHT 2011 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM</p>
Staff
2011-03-15T07:32:00Z
When a Business Has "Two Sets of Books"
Staff
http://www.DrLaura.com/b/When-a-Business-Has-Two-Sets-of-Books/9338.html
2011-03-01T07:43:00Z
2011-03-01T07:43:00Z
<img src="/images/Site/Icons/150x150/work_at_home.jpg" class="blog-icon-large" alt="Icon" />
<p>By Cliff Ennico<br />
<a target="_blank" href="http://www.creators.com/">www.creators.com</a> <br />
<br />
"My spouse and I have been looking to buy a business for some time. We've found a good local business with a great location and lots of existing customers.<br />
<br />
The seller wants us to pay one and one-half times his gross sales last year, which our accountant says is a fair price. The seller has also agreed to let us pay him 40% of the purchase price over the next five years, which we think is also a good deal.<br />
<br />
The problem is that the seller told us he carries two sets of books - 'one for the Government, the other for real' - and that he wants us to pay one and one-half times his gross sales as reported on his 'private' set of books, which naturally shows much higher gross sales.<br />
<br />
Of course, we're nervous about doing business with this seller. Still, the business is an attractive one and we have no intention of playing any 'games' once we take over. Everything will be on the up and up.<br />
<br />
Is there any way we can still do this deal and avoid being caught up in the seller's web if the Government should ever go after him?"<br />
<br />
Many small business - too many, in my opinion - play these sorts of games. My initial reaction is to say "well, if this seller is lying to the Government and others, what are the odds he's being straight up with you about other things?"<br />
<br />
Still, it may not always be practical to walk way, especially in a situation like this where the business may actually be doing quite well and has the potential for significant growth down the road.<br />
<br />
When a client of mine is buying a business with less-than-reliable books, I have three rules:</p>
<ul>
<li>do lots of due diligence before you buy, and make sure the "private" set of books are for real; </li>
<li>always base the purchase price on the seller's "public" set of books; and</li>
<li>make sure the Government, the seller's creditors and others can't come after you for money the seller owed them when you bought the business (what lawyers call "transferee liability").<br />
</li>
</ul>
<p><strong>Rule # 1 Do Your Diligence:</strong> You need to hire a good lawyer AND a good accountant. Make sure you have both. Get the seller to give you both sets of books for the last three years, and have your professional "team" tear them apart.<br />
<br />
Next, go to work in the business as an unpaid employee. Make sure you are the one standing behind the cash register and recording sales. See how his actual sales stack up against both sets of books. That will tell you which one is more likely to be "the truth".<br />
<br />
<strong>Rule '# 2: Base Your Price on Public Records.</strong> Your purchase price should be based on the lower, more conservative, books he is using to pay his taxes, show to creditors, etc. If he protests (and he will), offer him an "equity kicker" on the 40% you will be paying him over time.<br />
<br />
Here's how an "equity kicker" works: you would pay the seller interest on the 40% each month at a commercial rate (5% to 6% per annum right now). Then, on top of that, calculate the seller's average monthly sales as recorded on his "public" books for the last three years, and agree to pay him 10% to 20% of the amount by which your actual gross sales each month exceeds 110% of that average monthly sales figure. That way, if the seller has been lying about the business generating more sales than reported, he doesn't get a penny more from you than he is due. If he hasn't been lying, his payout is based on actual sales.<br />
<br />
<strong>Rule # 3: Protect Yourself Against the Seller's Problems.</strong> You should buy the assets of this business, not stock in the seller's company. That way you assume only those of the seller's liabilities (such as his current lease) that you want to assume. He's stuck with everything else. If there is a lien (called a "UCC security interest") on any of the assets you are buying, pay that creditor off in full at the closing and get the lien released.<br />
<br />
Next, find out from your attorney if you will be liable for any taxes the seller owes. Many states hold buyers of business assets accountable for sales, payroll and other taxes owed by a seller when the business changes hands. If this is the case, you may be able to ask the state tax authority for a "clearance letter" - basically a promise that if the state ever finds out the seller owed them money when you bought the business, they will go after the seller and not you. If the state issues the "clearance letter", then you can buy the business with a clear conscience. <br />
<br />
The seller won't like this, as the state may use your request as an excuse to audit his books, in which case they will probably find out about his creative accounting and come down on him hard. If the seller refuses to do the deal if you ask for a "clearance letter," or if there is no way to get a "clearance letter" for a particular tax, walk away.<br />
<br />
Cliff Ennico (<a href="mailto:crennico@gmail.com">crennico@gmail.com</a>) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at <a target="_blank" href="http://www.creators.com/">www.creators.com</a>. COPYRIGHT 2011 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM</p>
Staff
2011-03-01T07:43:00Z
Living Your Soul Purpose: 5 Ways to Know if You're Stuck in the Mud
Staff
http://www.DrLaura.com/b/Living-Your-Soul-Purpose:-5-Ways-to-Know-if-Youre-Stuck-in-the-Mud/9339.html
2011-03-01T07:40:00Z
2011-03-01T07:40:00Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg" />
<p>By Melissa Evans<br />
<br />
</p>
<p>The term sole purpose is one I use in the business world. When a company is totally focused on how they can be of the utmost service, they become focused on fulfilling their sole purpose. A company's sole purpose can also be its soul purpose. Providing the utmost service as a company means providing the utmost service to each individual who buys the product or uses the service provided by the company.<br />
<br />
</p>
<p>For example, when Bill Gates founded Microsoft, his sole purpose was to place a personal computer in every household in the world. His sole purpose was also his soul purpose as he recognized personal computers would enhance the lives of everyone who had one in their home. He understood the value of his gift, not only because of what he stood to gain personally, but also because of the potential it created for others to gain too.<br />
<br />
</p>
<p>When you're living your soul purpose, you feel passionate about what you do and you have an energy about you that radiates from you and let's people know you love what you do.<br />
<br />
</p>
<p>Things that might indicate you're not in your soul purpose and it's time to move on include:<br />
<br />
</p>
<ol>
<li>Heart palpitations; a feeling of being anxious to move on. </li>
<li>Feeling heavy every morning as you get up and get ready for work; hitting the snooze button on your alarm over and over! </li>
<li>Dreading going to work. </li>
<li>Little things at work that may normally have gone unnoticed begin to get on your nerves.</li>
<li>You know there's something missing and you know you have something more to give, you're just not sure what that something is.<br />
</li>
</ol>
<p>The amount of time you spend in a job and the energy you feel when you're in that job can be likened to the changing seasons in nature. When seasons change, you feel a change of energy. When your energy changes in your job, it marks the end of your season there and it's time to move on to the next one.<br />
<br />
</p>
<p>If you're not in your zone; if you're not meant to be there, it's not something you should view as a bad thing but it's something you must recognize and do something about. You must take steps to move on. When it feels like work, it's not your soul purpose.<br />
<br />
</p>
<p>When you're in your soul purpose, you will still be working but you'll be so passionate about what you're doing it won't feel like work. Moving on might mean setting up your own business and working for yourself. In most cases, someone working for themselves will work far harder than someone working for someone else, but they will feel energized by what they're doing because they're doing what they're destined to do. When you're working for someone else, especially in a large organization, you generally have only one aspect of the business to focus on, but when you're starting your own business, you need to have an understanding of every aspect of your business. The demands can be greater yet you will feel charged by the experience.<br />
<br />
</p>
<p>When you're living in your soul purpose, you're passionate about it so you share your gifts with other people. You're driven, but not in an egotistical way, to look for ways to help others. Your mind is divine and whatever your gifts are, the things you need to help you make use of those gifts and serve in your soul purpose will come to you. When you know those things are coming your way, you're open to receiving them and you're also open to recognizing what you're destined to do next at each stage in your journey. You recognize what it is you need to do and you work at it every day but it feels right.<br />
<br />
</p>
<p>When you love what you do, you will initiate getting the energy you need to do what you do really well, jump out of bed in the morning already thinking of other ways you might serve and anticipate what you need to do to make a difference. When you're passionate about doing something, you become unstoppable.<br />
<br />
</p>
<p><strong>Melissa Evans</strong>, also known as the "Guru of Implementation," is a no-nonsense dynamic speaker, author, and business advisor who helps business owners and business executives become more profitable while staying true to themselves. As a founding member of The Broshe Group, she coaches, consults and mentors entrepreneurs on how to make a six-figure income within a 12-month program, while decreasing stress and increasing fun and freedom in their lives. Find out more about The Broshe Group's business consulting, corporate mentoring, business coaching and "10 Minutes to Success" programs at <a target="_blank" href="http://www.broshegroup.com/">http://www.broshegroup.com/</a>.</p>
<p> </p>
Staff
2011-03-01T07:40:00Z
Turn Your E-mail Messages into Cash!
Staff
http://www.DrLaura.com/b/Turn-Your-E-mail-Messages-into-Cash!/9340.html
2011-02-22T00:59:22Z
2011-02-22T00:59:22Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>By Cliff Ennico
http://www.creators.com/
As frequent readers of my articles know, I am not the biggest fan of e-mail.
Each day I find myself answering at least 30 to 40 e-mails on matters relating to my law practice, the books I've written, upcoming speaking engagements, and messages from old high school friends who are preparing to attend our 40 year reunion this year, to say nothing of (ahem) these articles.
Last year I made a resolution to check e-mails only twice a day - once in the late morning, and again in the late afternoon - as some of the popular "time management" books recommend. When I was answering e-mails I did nothing but answer e-mails, I did not respond to e-mails between my two timeslots, and any e-mail that came in after "working hours" didn't get a response until the following morning.
Well, you know what happens to New Year's resolutions . . .
When I'm in the middle of doing a "rush" deal for a law client, or a reporter is "on deadline" and needs to interview me in the next 10 minutes, or a meeting planner needs to book a keynote speaker fast and has sent identical messages to 10 of my competitors, responding to e-mails only "twice a day" simply doesn't cut it. I would lose too much business if I didn't respond to certain e-mails in "real time", and that's just a fact of life.
So this year I'm trying another tactic to keep my e-mail traffic under control, as least as much as I can. Since I cannot seem to manage my e-mail traffic by budgeting my time, I'm going to do the next best thing.
I'm going to charge for reading and responding to certain e-mails from my law clients.
Yes, that's right.
Since it takes me at least 6 minutes (one-tenth of an hour) to read and respond to most e-mail messages, I am billing my law clients one-tenth of my hourly rate for each e-mail exchange on their particular matter. When I send a retainer agreement out to a new client, I now include a statement that "A minimum charge of $X (one-tenth of an hour) will be applied for each e-mail or IM text response relating to your matter." In bold face type, just so the client can't claim they never saw it.
Similarly, when I send out my monthly invoice to the client the last line-item reads "e-Mail exchanges w/client during month -- $XXX (13 e-mail exchanges at $Y each)".
Needless to say, some of my law clients aren't too happy about this. They seem to have the idea that anything happening on the Internet is free of charge, even if their e-mail is a request for legal advice running to 10 or more paragraphs.
But . . . they are paying the fee, however reluctantly, and I am finally being compensated fairly for an activity that takes a goodly chunk out of every working day.
Even better, I am receiving fewer e-mail messages each day. My clients are calling me more often with their thorny, complex legal questions, which is what I would prefer them to do. Not only do they get a better quality answer that way, but I'm not committing something to writing that may get posted all over the Internet ("Hey, everybody, see what Cliff Ennico thought of this!").
Now, of course, there are some rules about when I do and do not charge for e-mail responses. Here are some of the ones I've come up with:
I charge only my law clients - I never charge editors, meeting planners, speakers' bureaus, journalists, friends, relatives, or any reader of this column who wants to ask a question (although with my long-winded old high school chums, it's tempting);
I charge only those law clients who are paying me by the hour - if I am charging a flat fee for a particular matter, that will include e-mail responses up to a certain point (usually one to two hour's worth);
I only charge for "substantive" e-mail responses - confirming a lunch date by e-mail, or merely forwarding another message to a client without comment, will not be charged; and
I make sure (by keeping timesheets) that I am not charging more than 24 hours a day for e-mail responses.
This approach to e-mails is a "work in progress," and it may go the way of my "twice a day" program last year.
But so far it seems to be working - I haven't lost any clients yet because of it -- and it may work for your service oriented business as well. Give it some thought.
And if it works really well, I will consider applying the same approach to my telephone calls, daily trips to the UPS Store, and household chores (although sending my spouse that monthly invoice might be a tad tricky . . . .)
Cliff Ennico (
crennico@gmail.com
) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
http://www.creators.com/
. COPYRIGHT 2011 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM Permission granted for use on DrLaura.com
Staff
2011-02-22T00:59:22Z
"Royalty Financing": The New, New Thing in Venture Capital
Staff
http://www.DrLaura.com/b/Royalty-Financing:-The-New,-New-Thing-in-Venture-Capital/9341.html
2011-02-14T22:02:59Z
2011-02-14T22:02:59Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>By Cliff Ennico
www.creators.com
"I have a successful retail business that I want to take online with a killer website and a social media marketing campaign on Facebook and Twitter.
The problem, of course, is money. I need to raise $100,000 to build the website and launch the campaign, but am having trouble finding the money. My business has strong cash flows, but has never officially shown a profit. There aren't a whole lot of tangible assets in this business, and I don't have tons of equity in my home, so most local banks won't even talk to me. And I'm not really willing to give up 50% of my company to a venture capitalist.
Are there any other options out there I may have overlooked?"
You sound like a near-perfect candidate for the hottest new development in venture capital: so-called "royalty financing".
The concept of "royalty financing" has been around for a long time. Basically, the idea is this: someone lends you money (in this case, $100,000), but instead of a fixed interest rate, you agree to pay the lender a percentage of your gross sales (not net profits) each month - 2% to 6% is customary. The royalty payments may continue for a specified time period (generally three to five years), or until the lender has received all of their money back plus a 20% return on their investment (in this case, $120,000 in total payout). Once the time period expires or the desired return has been achieved, the loan is considered fully paid and you stop making the royalty payments each month.
Most, but not all, royalty financings also involve an "equity kicker" - the lender takes a piece of equity in your company (or, more commonly, a warrant to acquire shares) on top of the royalty payments each month. So if your company grows and becomes profitable, the lender will be entitled to a piece of your "upside" growth.
Why is royalty financing gaining traction right now? Basically, in a difficult economy where most entrepreneurial companies are struggling to break even and taking longer to become profitable, lenders to growing businesses have become tired of waiting for their money. Your business is not currently showing a profit, and it will have to do so before legally you can pay any sort of dividend or distribution to your investors. That may take years. Because most "royalty financings" are structured as loans, they do not run afoul of state laws requiring that dividends be paid only out of "earnings and profits". And your investors see a steady return on their investment each month.
There are several advantages to both parties in royalty financing. Because the lender is getting money back every month, it is taking less of a risk than it would making a traditional equity investment in your company. If your business grows rapidly, so will the lender's monthly royalty payments, meaning they will get their return on investment a Heck of a lot faster than they would buying stock in your company. Accordingly, a royalty investor may be willing to accept a smaller amount of equity as its "kicker" than it would in a traditional equity investment -- this leaves you the entrepreneur with more equity in your business, and less dilution for you and your business partners.
Also, the default provisions in royalty loans are usually much less onerous than in traditional bank financings. While most royalty loans require a minimum royalty payment each month, many investors will allow you to pay less than the minimum royalty for two, sometimes even three, consecutive months without putting you into default. Many royalty investors will also insist on converting their loan into straight equity in your company, rather than foreclosing on their loan, if you default in your royalty payments.
There are, however, some disadvantages to royalty financing. If your company is not demonstrating strong, steady and predictable cash flows each month, you are not likely to interest an investor in royalty financing. Also, royalty financing deprives you of some much-needed cash each month that you otherwise would pay for rent, payroll, business expenses, not to mention your compensation as owner of the business. Most investors insist that their royalty payment be made "on top" - i.e. before you pay other expenses - which may leave you cash-strapped at the end of the month if business unexpectedly turns down.
Having said that, though, for businesses with few tangible assets and zero profits, it may be the only type of financing you can get in a difficult market.
So where do you find royalty investors? A number of firms are setting up venture funds built entirely around the royalty financing concept. Among those are Arctaris Capital Partners L.P. in Waltham, Massachusetts (
http://www.arctaris.com/
); Cypress Growth Capital LLC in Dallas, Texas (
http://www.cypressgrowthcapital.com/
); Revenue Loan LLC in Seattle, Washington (
http://www.revenueloan.com/
); and Noventi Ventures in Menlo Park, California (
http://www.noventivc.com/
).
But as royalty financing becomes more popular, even local venture firms will be testing the waters. There's no harm in asking . . .
Cliff Ennico (
crennico@gmail.com
) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
http://www.creators.com/
. COPYRIGHT 2011 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM
Staff
2011-02-14T22:02:59Z
Raising Capital is Tough When You've Got Nothing to Lose
Staff
http://www.DrLaura.com/b/Raising-Capital-is-Tough-When-Youve-Got-Nothing-to-Lose/9342.html
2011-02-07T21:34:20Z
2011-02-07T21:34:20Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>By Cliff Ennico
www.creators.com
"For the past couple of years I have run a brick and mortar retail store specializing in customized merchandise.
I really want to take this business to the next level by building a website that will enable customers nationwide, and maybe even internationally, to customize our merchandise online. We have a proprietary technology for customizing our clients' orders that our attorneys tell us can be patented. We also have one of the best software developers in America wanting to work with us to develop the website.
The problem, quite frankly, is money. I will need $100,000 to get our technology patented and our website up and running, and I just don't know where to find it. The business is generating enough profit to keep me alive but not much more. My credit cards are fully maxed out, and there's no way I can get another one. My spouse is in the process of divorcing me, and will probably get the house, so I won't be able to tap any equity there.
I've given this business the last four years of my life, and I will continue to work 24/7 in this business until it succeeds. Yet one of my advisors recently told me raising the $100,000 will be a problem because I 'don't have any skin in the game.' How can he possibly say this when I've maxed myself to the limit, worked 90 hour weeks without vacations for the past four years, and have let everything else in my life slide to the point of ruining my marriage? What more do these people want from me - a pound of flesh?"
You really have to feel for this person. She is everything you think of when you think of an entrepreneur - passionate, committed to a fault, driving herself to the point of neglecting everything else in her life, and perhaps a little crazy. In a just world, venture investors should be lined up outside her door.
But, alas, this is not a just world.
The current investment climate is one of the toughest on record, especially for startups without proven technologies. If this person is lucky enough to find an investor, she probably will have to give up control (at least 50%) of her company.
Why so much? Because venture investors do not want to run the businesses in which they invest - they are counting 100% on the entrepreneurs they back to drive themselves through walls to make their businesses successful and give the investors the above-market-rate returns on investment they crave.
I have no doubt this reader is exactly that type of person. But investors don't see it that way. They want their entrepreneurs to have "skin in the game" - meaning they have something to lose if the business goes down the toilet. That's what will keep the entrepreneur working 24/7 to make sure that doesn't happen.
The problem is that this reader has already done that. She has put everything she has into the business (and a failed marriage), and, in the immortal words of Bob Dylan, "when you've got nothing, you've got nothing to lose". If she burns out or gets bored with the business, has a heart attack, or files for bankruptcy, she will walk away without the risk of any further loss, leaving the investors "holding the bag" to pay off creditors, clean up the mess, and write off their entire investment.
Needless to say, investors don't like it when that happens. So in this situation they will behave in such a way as to virtually guarantee the business will fail.
Here's how it will happen: they will ask for 60% to 70% of the company in exchange for the $100,000 investment this entrepreneur needs. If the entrepreneur takes the deal, she will find themselves a minority owner of the company she founded, with the possibility of even greater dilution once the business grows and needs some real capital ($1 million or more). In that situation, most entrepreneurs, being only human, would be less likely to give a 100%, 24/7 effort to the business (frankly, if it were me, I would start looking for a day job). Thus, it is less likely the business will succeed, and the investors probably will have to write off their investment. A "lose lose" for all concerned.
Clearly, this reader should do everything possible (short of committing a felony) to get the $100,000 she needs to launch the website. A "microloan" from a local bank, secured by all the business assets including perhaps the patent on the website, should get her halfway there. She should consider borrowing from friends and family members at 3% to 5% over current bank interest rates.
As a last resort, she should consider giving her investors a royalty on sales from the website in lieu of, or in addition to, a minority share in her company. More on that next week . . .
Cliff Ennico
(
crennico@gmail.com
) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2011 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission granted for use on
DrLaura.com
.
Staff
2011-02-07T21:34:20Z
5 Things You and Your Teen Should Know to Start a Business
Staff
http://www.DrLaura.com/b/5-Things-You-and-Your-Teen-Should-Know-to-Start-a-Business/9343.html
2011-01-24T05:40:57Z
2011-01-24T05:40:57Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>By Clifford Brabant
www.teenpalz.com
Starting a new business can be a complex undertaking. Your success depends on your knowledge and, ultimately, your execution of the knowledge you acquire. Time and money are precious resources. Use them wisely and follow these five ideas that may help you launch your new business effectively, profitably and with as few roadblocks as possible.
Know Your Business
...and love it. You should consider starting a business around something that you know well. Having a good book of knowledge and a strong passion for your new business will increase your odds of success.
Expand Your Knowledge
...However much you know about your business, it's probably not enough. Do the research, take classes and read up on your business concept. Research the competition. Your competition can be a big assist in helping you to develop your ideas to their fullest extent so that your business succeeds
Collaborate
...No matter how much you know about your topic, there are people out in the world who can move you along quickly in your business development process. Use these people as tools to help you expand your ideas and help you better understand those things that are not your strength.
Be Positive
...Starting a business can be tiring, frightening, frustrating, and draining. Remember, whatever you are attempting to do, someone has probably done something like it before, and they weren't special. They were just hard working and positive. You must develop a reasoned but unshakable positive attitude as you work your way to opening your business. It's usually the implementation, not the idea that wins.
There Are No Failures
...Believe it. Things will not turn out the way you thought they would. But, there are no failures. Just opportunities to learn and adjust. When something pops up a little different from the expected, ask why. Then use the new knowledge and move on. A positive attitude is a requirement for business success.
While in the beginning the task of starting a new business may appear daunting, it really is nothing but a process. There is a recipe for success and these 5 steps are the required ingredients. Do your homework, learn as much as you can, seek the help of others and be positive. Successful businesses are created every day...use your vision, passion and knowledge to see your dreams come to life and live the life you were meant to enjoy.
TeenPalz.com offers Palz an opportunity to teach, enrich and interact with teens in the absence of a parent. For information, resources or to sign up as a Pal visit
http://www.teenpalz.com/
.
Staff
2011-01-24T05:40:57Z
So You Want To Master Social Media - Ten Tips to Help You Succeed
Staff
http://www.DrLaura.com/b/So-You-Want-To-Master-Social-Media---Ten-Tips-to-Help-You-Succeed/9344.html
2011-01-23T10:17:51Z
2011-01-23T10:17:51Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Jill Hart, Founder of Christian Work-at-Home Moms
Diana Ennen, President of Virtual Word Publishing
It's official. Social media is here to stay. It's not a fad like so many initially thought and it isn't going anywhere soon. Businesses have realized that not only is it a great way to connect with current clients, but a great way to land potential clients as well. And that's only the beginning. Social media also allows you to promote all your upcoming events and products, and even gives you front row access to editors and reporters who might write on your area of expertise. The possibilities are truly endless. But the big question now is, how can entrepreneurs best use the current social media opportunities to help increase business? Here are some tips we feel will help.
Eleven tips to incorporate social media into your marketing plan:
Determine What Social Media Sites Are Best For You.
Facebook, Twitter and LinkedIn are the top three, but that's only the beginning. Determine who your target market is and then meet them where they are. It's okay to ask by taking a survey by email or on your website asking which social media avenue your clients prefer. Once you determine that, be consistent and realize that you can't be everywhere all the time. Pick the ones that are best for your business and really engage.
Team Up With Other Entrepreneurs.
By teaming up, you allow easy access to retweets, Facebook posts, etc. Plus, it's a great way to provide your audience with more valuable information on topics that would interest them by sharing information that is provided by the business(es) you team up with. Just make sure that your choose teammates with information that is a good fit for your audience.
Don't Just Advertise, Build Relationships.
We've all seen them. The tweets and Facebook postings that we know are scheduled and we know are only trying to sell us something. We aren't saying that you can't promote your services or products. In fact, we encourage you to do that. But do it right. Don't just be about landing the deal. Truly connect with your audience and show them why they would want to work with you. We know you've heard it a million times already, but it speaks for itself and bears repeating: Social media is meant to be "social."
Make It a Two-Way Street.
You post and you post and you post on Facebook. You've tweeted away on Twitter & you've updated your status on Linkedin. Finally you're done. Social marketing is ready to be checked off the list. Not so fast! Realize that just like you are posting there are others out there posting and building relationships as well. Get out there and respond to others, too. When you think about it, how do you feel when someone posts on your Facebook posting or blog entry? It feels good, doesn't it? When you see a Facebook posting that you like leave a comment - always making sure you add value and are not just promoting your business.
Make It Exciting.
We see this often: business owners on Twitter who get on for 20-minute increments and during that time we are inundated with retweets. They will throw in an occasional tip or two, but basically it's just 20 minutes of nonsense. Now we love a good retweet, but we don't enjoy this at all. When you are marketing your business via social media, make sure that you engage with others and make it exciting. Give some good information and tips - don't just retweet to be seen. Provide great value and your followers will not only enjoy your messages, but when they are looking to refer someone who needs your services, you will be on the top of the list.
Learn From Others.
One of the best things about being in business these days is that you have the opportunity to follow the pros and see what they are doing right. They eagerly give out tips, videos, etc. Make it a point to follow those who you respect and can learn from. Sit back and take notes. But more importantly, take the action steps necessary to make these points work. It's more than learning from them, you need to actually do what they recommend as well.
Contribute to Other Networks.
Another great aspect of social media is getting your message out to more than just your audience. Offer to guest post for other networks in your area of expertise. You never know who may see your posts and become a client.
Create An Expert Status.
Why do people follow you? Many times it is because they see you as the best at what you do and they want to learn from you. Therefore it's important to always give solid tips and advice to really show your expertise. Create high quality blog postings, tips lists and posts to share with your audience. It may take extra time to create high quality work, but the effort will be well worth it in the end.
Spruce Up Your Page.
Social media has come a long way in a short time. No more are you limited to a tiny avatar of your logo. Most of the social networking sites today allow you to fully customize your page with images, backgrounds and more. Spend the time to create a page that will draw in your audience and make them want to come back daily.
Be respectful.
One of the things that most business owners value most is time. It's important when you are on Facebook, Twitter and the other networks, that you be respectful of others' time. A few ways you can do that: Don't Expect An Instant Response. Sending an Instant Message (IM) to a colleague or respected leader is fine, but recognize that they may not be able to chat with you immediately. Often times that person has allocated a certain amount of time to be on the site. If they are constantly on an IM, they can't get what they need done. We're not saying you can't IM, but be respectful when you do.
Don't Take Advantage.
Social media is a relationship builder and gives us instant access to industry leaders. However, be careful not to take advantage of someone's goodwill by asking a zillion questions. Most business owners enjoy helping others, however, to provide personalized coaching is a different story. Always respect the person you are communicating with and we bet you'll find you get way more back than you ever imagined.
See how easy social media is. When done right it can bring amazing results for your business. Not only will you establish yourself as an expert, but you will be promoting your products and services regularly. Make it a commitment to master social media marketing and we promise you next year at this time, you'll be so glad you did.
Jill Hart, Founder of Christian Work-at-Home Moms
www.cwahm.com
and Diana Ennen, President of Virtual Word Publishing,
www.virtualwordpublishing.com
have teamed up to write
So You Want to Be a Work at Home Mom: A Christian's Guide to Starting a Home-Based Business
www.soyouwanttobeawahm.com
. Start or expand your business today with their help. Article is free to be reprinted as long as bio remains.
Staff
2011-01-23T10:17:51Z
Starting A New Business In The Middle Of Divorce
Staff
http://www.DrLaura.com/b/Starting-A-New-Business-In-The-Middle-Of-Divorce/9345.html
2010-12-04T09:32:34Z
2010-12-04T09:32:34Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>By Cliff Ennico
"My wife and I started a business a couple of years ago. We formed a limited liability company (LLC) to run the business, and split the ownership (and the work) 50-50.
My wife and I are currently in the process of divorcing. We have agreed to continue running the business as joint owners (frankly, we both need the income), but unbeknownst to my wife I have been meeting with an extremely wealthy 'angel investor' in our community. This person loves our business, and has offered to help me expand to multiple locations. He is aware my wife and I are divorcing, and has made it clear he doesn't want to work with anyone but me as his business partner.
Is there any way I can work with this person without my soon-to-be-ex-wife getting a piece of all the new business?
This is a tough question, and the answer will depend a lot on the divorce laws of your state, which generally fall into three groups.
A shrinking minority of states are "title" states. In these states whoever owns title to an asset gets that asset in the divorce settlement. In a "title" state, you and your investor would simply have to form a new corporation or LLC for each new business location without your ex-wife's participation, and she would not be entitled to receive anything from the new business locations.
Some other states, especially in the southwestern United States, are "community property" states. In these states, all "marital property" (assets acquired during the marriage) is considered owned 50-50 by the two spouses. If you live in a "community property" state, you will need to ask your lawyer when a marriage is considered to "end" legally for purposes of determining "community property": when the initial divorce petition is filed, or when a final decree of divorce is issued?
The third, and fastest-growing, group are "equitable distribution" states. In these states, including most states in the northeastern United States, assets acquired during the marriage are put into a "pool", regardless of who owns legal title to them. If the parties to the divorce can't agree on how these assets should be distributed, the judge presiding over the case has broad discretionary authority to divide them any way he or she sees fit in an effort to achieve the fairest possible outcome (the most "equitable" distribution, hence the name).
In an "equitable distribution" state, you still have the issue of whether an asset acquired after a divorce action has begun but before a final decree has been issued is "marital property". But because of the broad powers judges are given in "equitable distribution" states, the judge possibly could extend the period for "marital property" even beyond the legal dissolution date if, in his or her judgment, your new business is a continuation or extension of an asset that was created during the marriage.
That is a serious concern in this situation. A judge sympathetic to your wife could find that the "intellectual property" relating to this business (such as the business name and trade secrets) was developed by the two of you jointly during the marriage and is therefore "marital property", entitling your ex-wife to a piece of any income you create using that intellectual property even long after the divorce is final.
It's a very tricky question, and should not be dealt with without some expert advice on the matrimonial laws of your state. Assuming the law in this situation isn't clear (as is likely), here are some practical suggestions for how you may be able to move forward with this business.
First, if you are financially able to do so, you should consider making an offer to purchase your wife's share of the existing business, giving you sole ownership and control over its future growth. You probably will have to give up some heavy-duty assets, such as your house and investment portfolio, to get this, and you should consider carefully how long it will take to make up for these losses from the business' projected revenue growth.
Second, you should consider making "full disclosure" to your wife about your relationship with the new investor and your plans to expand the business. While your wife will almost certainly begin by asking for half of all new business, once you explain that the new investor wants to work with you alone, she may be willing to accept a much smaller "royalty", or percentage of all future sales from the new business operations, as a compromise settlement.
If your wife will not accept any sort of compromise, make sure your investor owns a majority share of each new corporation or LLC you form for this business. That way if your ex-wife does seek to attach your interest in the business, it will not technically be "your” business, and she will be able to obtain only a piece of your piece of each new company without any significant role in managing or running the business.
Cliff Ennico
(
crennico@gmail.com
) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2010 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission granted for use on
DrLaura.com
.
Staff
2010-12-04T09:32:34Z
Forming A Limited Liability Company To Shield Assets From Creditors
Staff
http://www.DrLaura.com/b/Forming-A-Limited-Liability-Company-To-Shield-Assets-From-Creditors/9346.html
2010-11-20T08:19:56Z
2010-11-20T08:19:56Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>By Cliff Ennico
"I am starting a new Internet business in my spare time, and have considered forming a limited liability company (LLC) for this business. I also owe a ton of money to some people, and there's a good chance I may have to file personal bankruptcy in the next year to two years. I have heard that if an LLC has only one member, it doesn't really protect you because your 100% ownership interest in the LLC becomes just another asset your creditors can attack. However, if you set up an LLC with two or more owners, the LLC will be considered an entity separate and apart from you so that any assets in the LLC will be safe from your personal creditors.
I don't want to share ownership of the LLC with any business partners just yet. So here's my question: can I set up an LLC which I own and manage, but give an interest to another person who won't have voting rights or a share in the LLC's profits and losses, but merely the right to receive one-hundredth of one percent (0.0001%) of whatever I get when I sell this LLC to someone else, as I probably will want to do if it is successful? Will that be enough to make this a 'two person' LLC legally?"
First of all, you will need to talk to a good bankruptcy lawyer. There are a number of rules that prohibit debtors (that's you) from transferring assets to anyone - not just a company - for less than fair value if your intent is to harm or defraud creditors and/or there is no "bona fide" business reason for the transfer. These are called "fraudulent transfer" or "fraudulent conveyance" laws, and you will need to take them into account before you make any capital contributions to your new LLC. You may, for example, have to get an independent valuation of any assets (other than cash) you transfer to the company.
Having said that, there is a growing body of law in many (not all) states that an LLC with more than one member may be considered an entity separate from its owners if any of the owners is sued by personal creditors. I doubt, though, that what you are proposing here - setting up a "dummy" LLC member who doesn't have any real power or authority - will pass muster in a court of law.
It is perfectly legal to give someone a percentage of the "net proceeds" (gross proceeds less transaction costs) of a future sale of a company as their sole compensation for services rendered to the company. Quite a few investment bankers and other "finders" who scout out acquisition partners for companies make good money this way. Whenever I have prepared a contract for such an arrangement, though, I always include a very clear statement that the individual is "not to be deemed or considered a member, partner, employee or agent" of the company for any legal purposes whatsoever.
Under most state laws, members of an LLC enjoy certain statutory rights. These include, among other things, the right to vote on matters requiring the members' approval, the right to participate in managing the company's business, the right to receive distributions of cash or property, the right to receive allocations of the company's profits and losses, and the right to review the company's books and records.
Most states allow you to deny some of these rights to certain members - for example, you can designate some of your members as "non-voting" - in your LLC Operating Agreement or by contract with individual members. I do not know of any state that would consider someone having only the right to participate in the proceeds of a company sale, without any of the other rights granted by law, to be a legal "member" of an LLC. You could, of course, state clearly in your LLC Operating Agreement that such a person is a "Member" of the LLC, but if any of your personal creditors decides to challenge the arrangement as a "sham" with no legal substance, you are likely to be a "test case" and there's no assurance a court will buy it.
So what can you do in a situation like this? If state law allows you to shield assets from creditors by forming an LLC with two or more members (this is not the case everywhere), you will need to be sure those members are "bona fide" business partners, not "dummies", "straw people" or "paper members" who sign the LLC paperwork solely to help you satisfy a legal requirement. They will have to have at least some of the rights which state law grants to LLC members, particularly the right to share in the profits and losses of the LLC business. You probably also will have to give them more than a 0.0001% interest in order to satisfy your state law requirements.
Cliff Ennico
(
crennico@gmail.com
) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2010 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission granted for use on
DrLaura.com
.
Staff
2010-11-20T08:19:56Z
Find Out About Mom-e-preneurs!
Staff
http://www.DrLaura.com/b/Find-Out-About-Mom-e-preneurs!/9347.html
2010-11-17T03:01:55Z
2010-11-17T03:01:55Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>My Dearest Dr. Laura,
It was such a pleasure meeting you on Sunday at the Work At Home Business Expo. Words cannot express my adoration and the thankfulness in my heart for your endorsement by wearing our t-shirt. It was quite funny actually to instantly become the "cool kids" on the block as all the other exhibitors wanted to know who we were and how we pulled that off.
Our mission is to offer support, resources and earning opportunities to the Work At Home Mom (WAHM). I know we need to iron out a lot of kinks but we were not looking to fully launch until 2011. We were at the Expo to gather interest. We have submitted a trademark application, filed our non-profit Articles of Incorporation, filed for our Tax ID and still need to complete our 501(c)3 application. We have finished our charter operational manuals for charter chapters and rules of conduct as well as support group by-laws. Our vision is to become a National organization with chapters across the country.
In doing our research, we looked at various consulting and support group formats. Few were specifically for the WAHM and the one company who was, was not a non-profit offering the "sweat equity" aspect. Our goal is to sustain each mother's decision to work from home. We are offering monthly support group meetings with invited speakers talking to the group on a range of topics from legal protection of your business, infrastructure, insurance, marketing, advertising, accounting, etc... Because we want to affect the "whole" woman, some meetings will be about juggling it all, fitness, healthy meals, establishing systems, maintaining the romance, scheduling, stress management, the kids, etc...
We will have monthly Support Group Meetings every 3rd Saturday from 10am to Noon at one of our mom's homes. We have lunch and child care. We will have a monthly mom's night out, play dates and date nights with the husbands. We will offer webinars, seminars, conferences, e-newsletters and tips to juggling it all. Most importantly, we will have a babysitting co-op. Our initial chapter had 11 women in it. On your weekend, you were on call for either that Saturday or Sunday; your choice. If another mom needed to meet a customer, get a report done, get a pedicure, go to the movie with her husband or simply take the ever elusive nap - if I am on call any and all moms can drop in and drop off the little ones. While it may be a sacrifice, my weekend would only come up once every 3 months. All moms are First Aid and CPR certified.
Most mommy groups have a zero solicitation policy. We WANT our members to promote their businesses within, on our websites and among each other. It is with this support that she will be able to sustain her decision to work from home.
For the SAHM who does not have the entrepreneurial spirit or does not have a vision as of yet, we want to bring in "life coaches" to assess her skill set and help guide her into a venture that would be most suitable for her. At some Support Group Meetings vendors like those at the WAHB Expo will be able to come in and have a captive audience and pitch their opportunity to our moms.
We want a page on
our website
eventually that will be a "Hire My Mom" type page. You may be an executive secretary who has decided to stay home with your children but still type a million words a minute. A business will see that mom's skill set on our site and can hire her to do a temporary assignment from home; dictation, transcription, etc...
Even still for the mom who is a SAHM and wants "milk money" we will have opportunity to earn money through quarterly chapter ventures where profits are split.
Sweat Equity - because we are a non-profit, we want to ensure that we give back to the community. The mom-e who participates in a charitable cause in the community earns sweat equity. So, because she did a breast cancer walk, when she needs our support, she gets free labor or services. For example, we have a mom who is a caterer. If she has a big event, the rest of us moms will roll up our sleeves, become her prep chef, servers, etc... that is money she saves on staffing and recycles back into her family.
I know it sounds like much but it is quite functional when practiced.
I'd love to discuss this more with you or your team.
Charisse McCoy
http://mom-e-preneurs.com/
Staff
2010-11-17T03:01:55Z
Avoiding "Straw People" When Buying A Business
Staff
http://www.DrLaura.com/b/Avoiding-Straw-People-When-Buying-A-Business/9348.html
2010-11-16T00:37:08Z
2010-11-16T00:37:08Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>By Cliff Ennico
"My wife and I are looking to buy a business together. We heard about a great local business that's for sale, but when we inquired with the business broker handling the sale we learned that it was already under contract to be sold. However, the broker told us the buyer was getting 'cold feet' and probably wouldn't want to go through with the sale. Since the buyer was getting a terrific price for this business, what this broker suggested is that we contact the buyer and offer to buy the limited liability company (LLC) he formed to acquire this business. That way we could become the buyer under the contract of sale and close on this business without the seller changing the deal. The buyer would stay on board as the 'President' of the LLC and sign all of the documents at closing as if he were still the party in charge, so the seller wouldn't suspect anything. After the closing, the buyer would resign as President and we would own the business.
I'm frankly a little nervous about this - it all sounds a little bit shady to me. Am I right or am I worried about nothing?"
Clearly, what this broker wants more than anything else is to preserve his commission on the sale. The seller may have a "backup buyer" or two, so if this buyer walks away from the deal, the broker will lose his commission.
Interestingly enough, though, what the broker is suggesting may be legal.
First, before doing anything else, you should get a copy of the contract of sale from the broker and review it carefully with a local business attorney. There will almost certainly be a clause in the agreement prohibiting the buyer from "assigning" his rights under the contract to anyone else before the closing. If the clause is well drafted, the clause may contain language saying that a change in the ownership of buyer prior to the closing is a prohibited "assignment" of the contract. If that language is there, then you should not cut a deal with the buyer as you will be inducing him to breach his contract with the seller, and will almost certainly be named in the lawsuit when the seller sues the buyer for breaching the sale contract.
Next check to see how the purchase price is being paid. If the buyer is going to pay part of the price in installments over time, the seller will no doubt insist on a personal guaranty from the buyer, and will not accept that from anyone other than the person with whom he originally contracted.
If a change in ownership is not prohibited by the contract, and if payment at the closing is "all cash", then it would technically be legal for you to buy the membership interests in the buyer's LLC. It still may not be a good idea, however.
When you buy membership interests in an LLC, you are buying the company's balance sheet - all of its assets and liabilities. You should do some diligence on the buyer's LLC and make sure it hasn't incurred any debts or obligations other than the contract of sale for the business. If the LLC doesn't have any financial statements or tax returns (highly likely if it was formed recently for the sole purpose of buying this business), then you should make sure the buyer indemnifies you for any "hidden" liabilities that may crop up after you buy his LLC.
I'm not wild about the buyer agreeing to stay on board as a "straw man" to deal with the seller after you buy the LLC. If the seller finds out, it will look as if you and the buyer have been conspiring to do something weird, and that may give the seller the right to walk from the deal. The right thing to do would be to notify the seller of the change in his buyer's ownership. If your attorney feels that a change in ownership of the buyer would not constitute a breach of the contract of sale, that's what you should do.
If you absolutely must use the buyer as a "straw man" to avoid alerting the seller to the change in ownership, make sure your attorney attends the closing (as the "buyer's counsel") so the buyer doesn't agree to any last minute "monkey business" you will be bound by. Also, the buyer should sign a letter now resigning as "President" of the LLC, dated the closing date, so there's no risk he will change his mind after the closing and ask you for compensation.
One last thing: don't forget to ask the buyer why he got "cold feet" and decided not to buy the business. You don't want to buy his LLC and then find out you yourself don’t want to go through with the contract.
Cliff Ennico
(
crennico@gmail.com
) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2010 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission granted for use on
DrLaura.com
.
Staff
2010-11-16T00:37:08Z
The Tax Reform America's Small Businesses Really Need - Part 2 of 2
Staff
http://www.DrLaura.com/b/The-Tax-Reform-Americas-Small-Businesses-Really-Need---Part-2-of-2/9349.html
2010-11-09T00:18:39Z
2010-11-09T00:18:39Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>By Cliff Ennico
Here are some more tax breaks America's small businesses really need.
Make the Health Insurance Premium Deduction Permanent.
There was one good provision in the Small Business Jobs Act of 2010, but it didn't go far enough. While small business owners have always been able to deduct the premiums for health insurance they provide for their W-2 employees, they have traditionally not been able to deduct premiums on the health insurance they provide for themselves and their families. The 2010 Act allows a deduction for business owners' health insurance, but only for the 2010 tax year.
Since most small business owners work in their own businesses, there is no justification for distinguishing between owner-employees and nonowner-employees. The deduction for health insurance premiums for small business owners should be made permanent.
Make All "Start-Up" Expenses Fully Deductible.
It used to be that expenses incurred in starting up a business (as opposed to recurring operating expenses once the business was established) could not be deducted. Instead, they had to be amortized (written off) over a period of up to five years. In 2003, Congress changed the law (thank you, George W.) to allow an outright deduction for the first $5,000 of business start up expenses. Because the legal, accounting and other professional fees incurred in starting up a small business often eat up half or more of that amount, why not simply allow an unlimited deduction for business start up expenses?
Eliminate the Restrictions on 401(K) Rollovers for Business Startups.
With banks not lending and people not saving the way they should, often the only place an entrepreneur can find money to start a business is his 401(k) or other retirement account with a former employer. A loophole in the tax laws allows entrepreneurs to do this - basically the entrepreneur sets up a new "C" corporation with a profit sharing plan, "rolls over" his 401(k) balance into the profit sharing plan, and then has the plan purchase stock in the new business. A number of companies (such as Benetrends Inc.,
www.benetrends.com
) help entrepreneurs tap into their 401(k) funds legally, but charge oodles of money for doing so.
Last year the IRS announced that such "rollovers as business startups" (or R.O.B.S., a telling acronym if ever there were one) would be carefully scrutinized for compliance with federal pension law. Among other things, the IRS said that a profit sharing plan into which 401(k) funds are "rolled over" must be made available on equal terms to all employees of the new business, not just the company founder. This means that entrepreneurs using 401(k) rollover money will need to spend thousands of dollars each year to make sure their profit sharing plans comply with the law.
With millions of laid-off corporate employees unable to find work, and realizing that their only hope of paying for retirement is to start a business of their own, there is no justification for prohibiting them from tapping a retirement account without tax or penalty to finance the business startup. The IRS should back off on R.O.B.S. transactions, and allow 401(k) rollovers as long as the proceeds are invested directly in a new business within 90 days of withdrawal. That would eliminate the need for entrepreneurs to maintain expensive profit sharing plans, and save them thousands of dollars in annual compliance fees.
Eliminate Taxes on IRA and SEP-IRA Withdrawals for "Bona Fide" Business Purposes.
Likewise, the rules on permitted withdrawals from IRA and SEP-IRA accounts before age 59-1/2 should be changed to allow withdrawals without tax or penalty if the proceeds are invested in a new business within 90 days of withdrawal.
Allow Deductions for "Career Change" Educational Expenses.
Under current law, you can deduct tuition and other costs if you take a class designed to help you improve your performance in your current job. But you can’t deduct any costs of classes that train or qualify you for a "new trade or business".
Given that millions of unemployed Americans will have to learn new skills in order to survive in a fast changing, competitive job market (yesterday's financial executive may be tomorrow’s yoga instructor), this restriction on deductibility no longer makes sense and should be eliminated.
What about the cost to the Treasury of these tax breaks, you may ask? Yes, some of these changes would cost the Government quite a bundle in tax revenue over the short term. But you know what? Passing these would reduce dependency on Government programs such as Medicare (or make them applicable to a much smaller number of people). Someone will have to crunch the numbers, of course, but I think overall these breaks would have the long-term effect of reducing Government expenses.
And think of all the additional income tax the Treasury could collect on fast growing, successful businesses that no longer need tax breaks . . .
Cliff Ennico
(
crennico@gmail.com
) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2010 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission granted for use on
DrLaura.com
.
Staff
2010-11-09T00:18:39Z
The Tax Reform America's Small Businesses Really Need
Staff
http://www.DrLaura.com/b/The-Tax-Reform-Americas-Small-Businesses-Really-Need/9350.html
2010-11-02T07:11:28Z
2010-11-02T07:11:28Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>By Cliff Ennico
By the time you read this, the Election of 2010 will be over, and we will have some idea of what Congress will look like for the next two years.
Regardless of how the election turns out, however, two things are clear:
Congress will have to pass a tax bill before year-end to avoid a huge across-the-board tax increase for all Americans when the Bush tax cuts expire on December 31; and
It's highly unlikely the new Congress will have any better grasp than the old Congress of the tax breaks America's small businesses really need.
Let's face it - most people who run for public office (at least at the national level) have little grasp of how business works. But they REALLY don't get how small businesses work.
Earlier this year Congress passed the Small Business Jobs Act of 2010. I don't know about you, but I don't think this law will create a single small business job. Increasing the Section 179 expense deduction for business equipment from $250,000 to $500,000 isn't going to give most small businesses an incentive to hire people - if anything it will give midsized businesses a greater incentive to replace human employees with machines, software and other technology solutions the way they have for the past 30 years.
To make matters worse, right after Congress passed this law they changed the requirements for filing Form 1099 - now you have to send these bloody forms to just about everyone you work with, adding to small business' paperwork burden.
If Congress is serious about creating jobs from America's small businesses, they have to understand a single, very basic fact about the way small businesses operate in this country. Which is:
The vast majority of small businesses in America are "pass through" entities such as limited liability companies (LLCs), limited liability partnerships (LLPs), and subchapter S corporations.
Why is that important? Very simple: when a "pass through" entity makes money, it does not pay taxes on that income. Rather, everything "flows through" to the owners who report that income on their individual income tax returns.
That means that whenever a "pass through" small business spends money on something, even a tax-deductible something, that expense reduces, dollar for dollar, the amount the owners can take out of the business to support themselves and their families (what accountants call "owner's discretionary income" or "ODI"). Hiring extra people may reduce the owners' working hours, but the extra expense also means they may not be able to make their kids' college tuition payment. Rational people will not do that just because the Government thinks they should.
Here are two news bulletins for members of Congress:
small business owners will not go out and hire people if by doing so they have to reduce their take-home pay - they will continue to do most of the work themselves and pocket the profits;
asking small business owners to increase their expenses today in return for a tax deduction or credit which they won't see until next year is a "non-starter" - it's like the Wimpy character in the old Popeye cartoons, who "will gladly pay you Tuesday for the price of a hamburger today."
For small business tax breaks to be really effective, they will need to put more money in small business owners' pockets (or at least not reduce their current ODI).
Here are the tax breaks America's small businesses really need to grow and create jobs the way the Government wants them to do. Newly elected members of Congress, whatever your party affiliation, please take note.
Eliminate Employment Taxes for Small Payrolls.
Most employee salaries in the U.S. are artificially inflated because of Social Security, Medicare and other employment taxes. This makes employees extremely expensive, and discourages small business owners from hiring people. By eliminating these taxes for payrolls of less than $5 million, three wonderful things will happen:
small businesses will actually go out and hire people, because they can now pay them lower wages that employees can live on without drastically reducing the owners' own incomes;
employees will end up with more after-tax money in their pockets (many existing employees will get a "de facto" wage increase), which will encourage them to spend more on stuff; and
small business owners will no longer have to pay huge sums to bookkeepers, accountants and payroll services to help them keep track of the Byzantine employment tax rules.
I would also recommend that in adopting this law, Congress eliminate these taxes on the owners' "self-employment income" as well. A "pre-emption" of state and local payroll taxes eliminating those as well on payrolls of less than $5 million would be nice, but I'm not holding my breath for that.
More next week . . .
Cliff Ennico
(
crennico@gmail.com
) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2010 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission granted for use on
DrLaura.com
.
Staff
2010-11-02T07:11:28Z
A Million "Friends" Do Not A Marketing Strategy Make
Staff
http://www.DrLaura.com/b/A-Million-Friends-Do-Not-A-Marketing-Strategy-Make/9351.html
2010-10-23T07:42:42Z
2010-10-23T07:42:42Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>By Cliff Ennico
As a small business columnist, I get at least several press releases a day from public relations firms around the country who are trying to get their clients a mention in this column. Most are representing authors promoting their "new" ideas (sadly, few qualify), consultants trolling for clients, or successful entrepreneurs selling their "how I did it" stories (mostly to investors or larger companies that may wish to buy them).
Every once in a while, though, a press release comes through that puts its finger directly on a pressing problem facing America’s growing, privately owned businesses. This one landed in my Inbox last week, and deserves to be quoted ver batim:
"A few years ago blogs were the social media of the moment for businesses. But, according to a Pew Research Center Survey, by 2005 only 27% of Internet users in America were bothering to read them. Today according to Forrester, the numbers for adult blog readers have dropped to just below 25%. Now, Facebook and Twitter are where every business thinks they need be. Despite a failing economy and tight budgets, companies are hiring consultants and even creating internal teams to manage and update their social media believing that product announcement Tweets and being "liked" on Facebook will somehow convert to sales and growth. In a realm ruled by celebrity gossip, pictures of weddings, babies and drunken antics, the question remains though - are any of these businesses' messages being heard through the noise and if they are, to what end?"
Bingo - when you are thinking about promoting your business via social media, these are precisely the questions you need to ask. Like many of you, I am sick and tired of hearing how Facebook, Twitter and their ilk are going to change the world. Yes, they're fun to do. They can put us in closer touch with distant relatives, college friends and other "people from our past" that would otherwise be forgotten or put out of our lives altogether. They can also give us bragging rights at the local watering hole ("I've got 278 more friends than you, nyah, nyah").
But there are two burning questions business owners need to ask when it comes to social media:
how do people generate actual sales (as opposed to marketplace "buzz") from these things?
who is looking at these things more than infrequently, and are they looking to buy stuff or just schmoozing?
The biggest way (at least right now) that businesses generate revenue from social media is from advertising. Basically, by posting lots of personal information to a social media site, you and your "friends" help that site sell ads that their "affiliates" (read, advertisers) put on your profile page, without your permission and with no share of the revenue going to you. You also help them create a huge database of information about you which they can sell separately to their "affiliates" hoping to sell stuff directly to you and your friends.
This can create problems. A few weeks ago I visited one of my online profiles (I won't say where) where I am listed as a "small business attorney", among other things. I was shocked - shocked! - to discover an ad next to my photo from a law firm offering to help people who are looking to buy franchises. Hey, I do that - this advertiser was a competitor of mine! I complained to the site and the ad was promptly removed, but now I have to check my profile page frequently to make sure nobody is using my name to promote products, services and opinions that I don't want my name associated with.
But now for the second question: who really is buying stuff from social media websites? The plain fact of the matter is that most of us are just too darned busy or self-absorbed (some of us writing graffiti to our "walls" or "tweeting" our own songs of ourselves) to read what other people are putting up online, much less respond to their postings or click on an ad.
Don't get me wrong - I'm not knocking social media as a marketing tool. I'm merely suggesting that once the novelty of social media wears off (and the press release quoted above makes me think the Web 2.0 "backlash" has already begun), only those businesses with a clear and coherent marketing strategy will be able to use it effectively. This means:
targeting online ads only to people interested in your products and services (preferably from your own profile page, not anybody else's);
ruthlessly managing your profile pages to keep them "on message";
placing ads on people's profile pages only with their permission and endorsement, or some other meaningful "opt in"; and
watching your Web metrics closely to see where (and if) your social media presence is leading to actual sales.
Cliff Ennico
(
crennico@gmail.com
)
is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2010 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission Granted for use on Dr.Laura.com.
Staff
2010-10-23T07:42:42Z
How To Pay People When You Don't Have Any Money
Staff
http://www.DrLaura.com/b/How-To-Pay-People-When-You-Dont-Have-Any-Money-/9352.html
2010-10-18T23:01:01Z
2010-10-18T23:01:01Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>By Cliff Ennico
"I just recently started a social media Website for people who share an interest in certain niche collectibles. I want people to contribute articles and other content to my Website, but right now I’ve spent all of my money on developing the Website and don't have any left over to pay people with.
I am thinking about setting aside 20% of my company - I'm a limited liability company (LLC), by the way - and giving little pieces of that to people who contribute articles or otherwise help me build this Website.
I'm also planning to raise venture capital for my Website down the road when it starts generating interest from advertisers and strategic partners, such as the companies who manufacture these collectibles.
What do you think is the right way to reward these people?"
This is a perennial problem for startup businesses of ANY kind, not just Websites. When you're first starting out in business, cash is very expensive. You want to dole it out with an eye dropper. If someone is willing to work for something other than cash, it’s tempting - very tempting - to give them a tiny sliver of your company.
But that's a temptation you should resist at all costs. When you're first starting out in business, cash is precious and stock is cheap. As the business grows, however, your stock's value grows until it becomes more valuable than cash. Remember the secretaries at Microsoft Corp. who all became millionaires when the company went public? Here are some reasons not to give out stock to strangers:
(1) Once you give someone a piece of your company, however tiny, that someone becomes your business partner for legal and tax purposes. You will have to send that person IRS Form K-1 at the end of each calendar year showing what their little piece is worth, and report that person as a partner on IRS Form 1065 (the partnership tax return) your LLC will have to file each April 15.
(2) Giving someone a piece of the pie doesn't guarantee they will continue to contribute to your business. You want to give people an incentive to contribute regularly over the long term, not just write a few articles and then sit back and wait for their reward.
(3) Once someone owns a piece of your company, the only way you can legally get rid of them is to repurchase their piece for a price they are willing to accept. If your company is growing very rapidly, they will be inclined not to "sell out" until their share becomes too expensive for you to buy back.
(4) Venture capitalists and other professional investors really, really don't like it when they are lots of little business partners running around who aren't making a daily contribution to your business' growth. They will tell you to get rid of them (i.e. buy them out) before they will consider making a serious investment.
(5) Even if a venture capitalist is willing to tolerate these spoiled unproductive little brats you've created, remember that you've legally given away 20% of your company. That means if the venture capitalist wants 51% of your company (a not uncommon situation) in return for their investment, you now own only 29% of the business you founded. Still not bad for a fast growing technology business, but a lot less than it should be for the 24/7/365 of your time you've invested in building it.
So how DO you compensate people without paying out precious cash or giving away too much of your company? Here are some suggestions:
(1) Don't make any offer of compensation at all. Instead, let them tell you what they want in return for contributing articles and other content to your Website. People will often surprise you. Many will contribute content for nothing as long as they get authorship credit for it. Even if they ask for compensation, they probably will ask for much less than you are willing to pay - it's amazing to me how many people will value themselves far below their actual worth to avoid rejection.
(2) If that doesn't work, give them a "founder's discount" on products, services and subscriptions they buy from your Website.
(3) If that doesn't work, give them an "option" to buy a small piece of your company at a future time if you are satisfied with their contribution. It doesn't have to be a fixed date - you can allow them to exercise their option "when our internal Web pages featuring your content account for 5% or more of the total hits on our Website". That way the person will get their reward only if they become a "player" on your site.
(4) Lastly, if you absolutely must give someone a piece of your business to get them to contribute highly valuable content that will help you grow your business, be sure they sign an agreement giving you the absolute right to buy back their share for a small price within the next five years if they stop contributing content to your Website for a significant period of time, they contribute content to a competing Website, or you are required to pull their content off of your Website for any reason.
Cliff Ennico
(
crennico@gmail.com
)
is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2010 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission Granted for use on Dr.Laura.com.
Staff
2010-10-18T23:01:01Z
Four Secrets To Getting Deals Done
Staff
http://www.DrLaura.com/b/Four-Secrets-To-Getting-Deals-Done/9353.html
2010-10-12T06:35:09Z
2010-10-12T06:35:09Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>By Cliff Ennico
"My partner and I own a service business we've been trying to sell for some time. We finally found a buyer, but the process just seems to be taking forever. The buyer's attorney seems to be taking a long time to review our attorney's draft documents, and our attorney doesn't seem to want to push things as fast as we want him to. We've explained to him that 'time kills deals,' and we're really worried that the deal will fall apart if pressure isn't constantly being applied to get things done. Do you agree, or are we missing something here?"
You are right, of course, about time killing deals. But pushing things faster than they're able to go can kill deals just as easily.
I assume you are selling the assets of your service business, as that's how most of these transactions are structured. An asset sale transaction has a lot of "moving parts" that all have to synchronize before a closing can take place. For example:
your landlord will need to consent to the buyer's assuming your existing lease of your business premises, and they probably will want to see financial statements from the buyer and other documentation so they can comfort themselves his credit risk is the same or better than yours;
you will have to get consents from any leasing companies from which you lease equipment;
if your business is a franchise, you will have to get the franchisor's consent; and
your accountant and the buyer's accountant will have to agree on allocating portions of the purchase price to specific asset categories for tax purposes.
These things can't be done in a day or two. In my experience, it generally takes four to six weeks to close a sale of business assets from the date you and the buyer initially agree on the purchase price. Pushing any faster than that can be very counterproductive.
If there is a real urgency in closing your deal by a specific date, by all means you should communicate this to your attorney so that he can communicate it to the buyer's attorney. That may help move things along. If there is no such urgency, however, I would advise you to "cool your jets" and let your attorney and the buyer's attorney work through the details at a reasonable pace.
Here are four rules I live by when it comes to getting deals done.
Rule # 1: Deals always go more smoothly when the attorneys work together as a "team". Contrary to popular opinion, this is one arena in which you and your attorneys should not be aggressive or adversarial. It's the buyer's money, after all, and he should have sufficient time to understand what he is signing, and the obligations he is assuming. By pushing him too hard to close quickly, you will get him (and his attorney) very nervous. The buyer will begin to suspect there are skeletons in this business' closet, and will conduct his due diligence with an electron microscope instead of a magnifying glass. The buyer's attorney will start worrying about his malpractice liability, and will be sure to get his back up, raising unnecessary issues and "nitpicking" the documents in an effort to slow things down and protect his client.
Rule # 2: If the other side asks for something reasonable that doesn't hurt you in any way, don't waste time arguing about it. Say "yes," and move on. You want to get closure as soon as possible so that you and the buyer can focus on getting all the closing paperwork pulled together. If you are still negotiating the business deal at the closing table, something has gone seriously wrong with the transaction.
Rule # 3: If the other side asks for something unreasonable or that does hurt you, then ask why they need it. Don't say "no" automatically when the other side asks for something you can't say "yes" to. Instead, ask "why". A lot of times the other side really doesn't care too strongly about the point, and will drop it. Even if they don't, once you understand fully the other side's concern, you will find there's usually a compromise position that will satisfy that concern without hurting you.
But don't be a wuss. If the other side's position doesn't make sense, say so.
Rule # 4: Never try to close a deal in August. A lot of people try to get deals done in August because they figure everyone will have more time to focus on the details, but in my experience that never happens. No sooner has one player returned from vacation than another one leaves on vacation. If you can't get the deal closed by the end of July, schedule the closing for sometime after Labor Day and head for the beach. Everyone will appreciate that you are not trying to disrupt their precious time off, and that goodwill will pay dividends when negotiations resume.
Cliff Ennico
(
crennico@gmail.com
) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2010 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission Granted for use on Dr.Laura.com.
Staff
2010-10-12T06:35:09Z
Don't Worry, Pal, This Contract Says Exactly What I Said It Says
Staff
http://www.DrLaura.com/b/Dont-Worry,-Pal,-This-Contract-Says-Exactly-What-I-Said-It-Says/9354.html
2010-10-02T04:51:23Z
2010-10-02T04:51:23Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>By Cliff Ennico
"I'm in discussions with a company that wants me to be a sales representative for them. Basically I would get commissions 'to infinity' from any new customers I generate for the business within my assigned territory. I showed the brokers' contract to my attorney, and he isn't happy with the language. He says 'to infinity' doesn't really mean anything, that the contract should say I get commissions 'in perpetuity', and that the contract doesn't say specifically I continue to get commissions even after the contract terminates. I had my attorney make the necessary corrections and sent it to the company president, who was outraged I had spoken to an attorney and told me the language he originally drafted was 'crystal clear' and he won't change anything. I'm not an expert on contract language; who do I believe here?"
Believe your attorney, because he's absolutely right. Unless the company president is Buzz Lightyear, "to infinity" doesn't mean anything legally. The correct language is indeed "in perpetuity". Even with that change, there's a good chance you will lose any right to future commissions if the contract terminates. If you are to receive commissions on any sales the company makes to your customers, even after your contract terminates, this has to be clearly stated in the contract.
I don't like the way the company president responded to your legitimate concern. Even if he does agree to make the requested changes to your brokers' contract, I would not go forward with this relationship. The company president is either:
ignorant of how this type of contract should be drafted, which should make you wonder what other "booby traps" there are in this contract;
too cheap to hire lawyers to give him the right advice to run his business, which makes you wonder what other legal issues this company has that aren't being resolved or corrected; or
deliberately misleading you into thinking the contract language is clear when in fact it's so loosey-goosey he will easily be able to wiggle out of his obligation to pay you your commissions anytime he feels like it.
Whichever version of the truth is correct, it isn't good. In the words of the old 1970s power ballad, "walk away, baby, walk away . . . "
"I have been working as a subcontractor for a company in another part of the country for the past two years. Although I have performed significant work for this company's clients I have not been paid my commissions in several months. My contract clearly states that I am entitled to receive 25% of 'all contract value delivered by contractor', and that payment is due within 30 days after the company receives payment from its client. I recently asked the company president why I wasn't being paid commissions, and he had the nerve to tell me he didn't have to pay me anything because I didn't actually deliver value to their clients. This is ridiculous! Can I do anything about this?"
You are right this company is clearly raking you over the coals and doesn't want to pay your commissions (or can't do so because it's in over its head financially) and you are not essential to the company's continued success. You are wrong, however, about your contract being "clear" as to how much you should be paid. The phrase "all contract value delivered by contractor" doesn't mean anything – it is meaningless babble whose sole purpose is to enable this company to wiggle out of its obligation to pay you whenever it becomes convenient to do so.
What you clearly thought the contract said was "25% of all revenue received by Company" from clients for whom you performed services, but that's not what the actual language says. Unless the term "contract value" is defined elsewhere in the contract, it is open to interpretation.
That being said, your cause is far from hopeless. I don't know too many courts that will allow this company to willingly accept hundreds of hours of services from you without paying you anything. There is no question that under this contract you are legally entitled to be paid something for your efforts – the only question is "how much?"
At the very least, you are entitled to be compensated for whatever your services are worth – the legal term for this is "quantum meruit," literally "whatever it's worth" -- based on the industry you are in, what similar contractors are paid for similar worth, and other factors.
You will need to retain an attorney in the state where the company is located, not where you are located. Once the company president receives a nasty letter from a law firm in his backyard threatening him with suit, he will likely be highly motivated to contact you and try to work out a settlement.
Cliff Ennico
(
crennico@gmail.com
) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2010 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission Granted for use on Dr.Laura.com.
Staff
2010-10-02T04:51:23Z
Entrepreneurs - 'Business Start Up Tips For Ultimate Success
Staff
http://www.DrLaura.com/b/Entrepreneurs---Business-Start-Up-Tips-For-Ultimate-Success/9355.html
2010-09-17T07:20:28Z
2010-09-17T07:20:28Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Jill Hart of Christian Work at Home Moms,
CWAHM.com
.
and Diana Ennen of
VirtualWordPublishing.com
We know what it’s like. You have a great idea and are ready to begin building your business, but how do you know where to start? What are the first steps that you should take? Below are a few tips to get you started in the right direction.
We know what it's like. You have a great idea and are ready to begin building your business, but how do you know where to start? What are the first steps that you should take? Below are a few tips to get you started in the right direction.
Have a Plan & Work That Plan
The first step toward starting a business is to have a plan in place. Most successful businesses take the time to make sure they have a blueprint to success, a plan. When you have a blueprint and a direction to go, you will be so much more successful. There are many free resources across the Internet that can aid you in structuring and thinking through the writing of your business plan. Once you get the plan in place, follow it!
Don't Try To Do It All Yourself
A wise business owner knows that they can't do it alone. Even if you have a small budget to begin with, you can enlist the help of a virtual assistant or possibly volunteers or mentors. Get more on board who have experience that can help you in your business.
Know Your Audience (and why they would be interested in your products or services)
Who are you trying to reach? Who needs your product or information? Take the time to do market research and list out who you are selling to and where you can find them - both online and offline. This will help you both when creating the product/service and in your marketing efforts. Also, make sure you keep in touch with your audience and find out how they feel. You can easily create surveys and find out valuable information about what they really think.
Be Clear On Your Rates
You must be clear not only with potential clients, but you must know for yourself what you need to earn. Be brutally honest with yourself about how much you need to earn to keep your business afloat. Now set realistic goals and figure out how to make that happen. Remember in setting your rates that often times you are selling the value of your services or products, and not necessarily the service or product itself.
You Gotta Want It
Someone asked me once why I thought some entrepreneurs succeeded while others, just as talented, failed. My answer? Those that succeeded wanted it bad enough to do whatever it took to make it happen. Running a business isn't easy, especially in the beginning. There will be long hours, tough critics and disappointments that can’t be prepared for. The entrepreneur who works through the tough times is the one who succeeds in the end.
Get Busy
Don't wait until you "have it all together" to take that first step - it will never happen. If you have a great idea and have done enough planning to know where you're headed, go for it. Be prepared to learn some lessons. Be prepared to make changes along the way. But, if you never take the first step you'll never know the joy of the journey.
Jill Hart
of Christian Work at Home Moms,
CWAHM.com
. and Diana Ennen of
VirtualWordPublishing.com
are the co-authors of
So You Want To Be a Work-at-Home Mom
. For more tips visit
http://SoYouWantToBeaWAHM.com
. Permission Granted for use on Dr.Laura.com.
Staff
2010-09-17T07:20:28Z
"Going Out Of Business" With Style, Grace And Elegance
Staff
http://www.DrLaura.com/b/Going-Out-Of-Business-With-Style,-Grace-And-Elegance/9356.html
2010-09-17T07:12:56Z
2010-09-17T07:12:56Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>By Cliff Ennico
"For the past two decades my husband and I have run a bookstore in our town. Well, we lasted as long as we could, but between Borders and Barnes and Noble both opening outlets in our area within the past five years, we've seen our customers slowly dwindling away, to the point that we've decided to call it quits when our lease expires later this year.
While we have a 'bookstore cat' we're going to keep, everything else must go. What's the best way to go about handling a 'going out of business' sale?”
I hate to read e-mails like this, but sadly they are becoming more and more frequent. Nonetheless, life goes on, and there is a right way and a wrong way for a business like this to shut up shop.
Let's start with the wrong way: the biggest mistake this reader could make is to advertise a "going out of business" sale a month or two before her lease expires. What would happen is that all of the local "used book" dealers (many of whom sell exclusively on eBay and Amazon) would show up at her door on Day One of the sale, clean out all of the good stuff for pennies on the dollar, and leave her with a half-empty store and inventory she can't even give away.
Here's the right way to run a liquidation sale:
First, let the landlord know you won't be renewing her lease. Many retail leases require at least 90 to 180 days prior notice of nonrenewal so the landlord has sufficient time to find a new tenant for the space. Fail to give notice in a timely fashion and you may end up paying penalties to the landlord.
Then, post a notice on your business website (I'm assuming this reader has one), letting them know the business will shut down on such-and-such a date, and offering a "progressive" going out of business sale as follows:
10% off retail during the first month;
25% off retail during the second month;
50% off retail thereafter.
This will encourage a more even distribution of customers during the sale - some will show up early to grab the best stuff, while others will wait until later on to get the better bargains.
If you wish, you can send e-mail or "snail mail" messages to your most frequent and loyal customers offering them an additional 10% off if they bring a copy of the message with them. That will guarantee your "best stuff" ends up in the right hands - the people who have supported you all this time.
Then, remove some of your best merchandise off the shelf.
That's right - you read that correctly. Take some of your most popular titles and put them in a storage area somewhere.
Many people will assume that the good stuff will be "cherry picked" during the first week of your sale. Prove them wrong. Every week take a few items from your "hidden goodies" pile and sprinkle them randomly throughout the store in places where customers can easily see them. People will soon realize that you are spreading your merchandise out throughout the sale, and that will bring them back time after time to check out the new stuff you've put out.
When people make offers to buy your bookshelves, racks and other "trade fixtures", don't let them carry these items off of the premises when they pay for them. Instead, put a "sold" sticker on the shelves and racks they buy, and leave them in place until the sale is over. Each night spread your remaining books evenly throughout the shelves - that will entice customers to shop longer and make your store look more "full", giving the appearance that there are still great bargains to be had.
When there's only a week or two left in the sale, do the following:
run an ad in your local newspaper announcing your “going out of business” sale for the first time – that will alert the local used book dealers, bulk purchasers and other “bottom feeders”, and they will come by with their boxes and pickup trucks and clean out most of your remaining inventory (you can even offer an extreme discount, such as “$25 per box, no questions asked”);
alert the people who bought your bookshelves, racks and trade fixtures that it’s time for them to pick up their purchases; and
ask your local library to send volunteers to your store on the last day of the sale to pick up whatever’s left over for their annual used book sale – be sure to get a receipt for these so you can take a charitable deduction on your final business tax return.
Lastly, have your local newspaper send a photographer out to document your last day in business. It won’t be a fun day for you, but I think it’s important to let your community know that yet another small family business has bitten the dust, and an era come to an end.
Cliff Ennico
(
crennico@gmail.com
) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2010 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission Granted for use on Dr.Laura.com.
Staff
2010-09-17T07:12:56Z
Legal Issues For Mobile "App" Developers
Staff
http://www.DrLaura.com/b/Legal-Issues-For-Mobile-App-Developers/9357.html
2010-09-04T03:47:59Z
2010-09-04T03:47:59Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>By Cliff Ennico
"I'm a graduate engineering student at a major university in the Midwest. Some of my fellow students and I have thought it would be a great idea to make a little extra money by developing software applications (commonly known as "apps") for mobile devices such as Apple's iPhone® and mobile devices running Google's Android® software.
Some of these apps are our original ideas, while we would also offer our services to help other app developers get their products to market. What are some of the legal issues we should be thinking about?"
First of all, check with your faculty advisor and make sure you can engage in entrepreneurial activity as a full-time graduate student. Some universities have policies on that. If you have received any sort of grant or scholarship to engage in your studies, the agency that granted you the scholarship may have imposed additional conditions. Also, if any of you are here in the United States on a student visa, there may be immigration issues to deal with.
Assuming no problems there, here are some things to think about:
Mobile Apps You Develop Yourself.
Mobile software applications have three distinct parts:
The software that runs the application;
The "toolkit" that enables the application to function on the mobile platform (such as Apple's iOS software for the iPhone and Google's Android); and
The icon that users click on to launch the application.
Because you are developing these apps yourself, you should own all rights to the software that runs the app. By "you" I mean you and your buddies, who are developing these apps as a legal partnership. You may be forming different partnerships for each app (for example, A and B may develop the first app, B and C the second, A and C the third, and so forth), so get a written agreement with your fellow students right now as to how you will split revenues and profits from each app.
In order to become a "registered developer" for a mobile device platform owner such as Apple or Google, you will need to license the owner's software "toolkit" that will enable your app to run on that platform. Be sure to read each platform owner's license agreement for their toolkits very carefully (don't just click on the "Accept" button the way most amateur developers do). While the platform owner will want to maintain all rights to their "toolkit", some development agreements also give them ownership rights to your app software as well, which isn't right. They should get only the "nonexclusive right and license" to use your app on their platform, and you should have the right to terminate the relationship at any time and for any reason.
When reviewing a "registered developer" agreement, also keep your eyes open for provisions that:
prohibit you from developing apps whose "look and feel" are too similar to other apps already in use on the platform;
prohibit you from licensing your app to a competing platform;
enable the platform owner to boot your app off of the platform if another developer comes up with a more successful app for the same or a similar function; or
enables the platform owner or other app developers to modify or reverse engineer your app without your consent.
As for the icon users will click on to launch your app, you should speak to an intellectual property lawyer about trademarking or copyrighting each icon you create so other developers can't copy its "look and feel" if your app is successful. Try not to copy other app icons, as there's a good chance the other app developer will sue you for infringement if people are confusing your app with theirs.
Apps You Develop for Other People. Whenever you are developing apps for other people, you are a "software developer," and should have a written software development agreement with each of your customers. A business lawyer can create one for a fee in the $500 to $1,000 range.
Your customers will want to own all intellectual property rights to the app software you develop for them. That's okay as long as they don't get the rights until they have fully paid you your development fee.
They should not, however, have any rights to any software programs or tools you use internally to develop apps for all of your clients – these are proprietary to you, and the contract should clearly say that.
Also, some customers will want you to agree that you won't develop a similar app for their competitors. While it's okay to say that you won't develop an identical app for someone else, it's not okay to say you won't develop an app having the "same or similar functionality" for another customer. As most mobile apps have a relatively short shelf-life, keep any noncompete period as short as possible (no more than six months unless the customer is willing to pay for a longer period).
Cliff Ennico
(
crennico@gmail.com
) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2010 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM
Staff
2010-09-04T03:47:59Z
If You Own A Business, These Clauses Need To Be In Your Will
Staff
http://www.DrLaura.com/b/If-You-Own-A-Business,-These-Clauses-Need-To-Be-In-Your-Will/9358.html
2010-08-28T07:52:37Z
2010-08-28T07:52:37Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>"I realize your column is for people who own their own businesses. That's not me, but I need your help. I am an attorney in a small Midwestern town who specializes in wills and estates. A client of mine, who owned a local franchised business, recently died, and I am trying to sort out his estate. His wife is emotionally shattered and cannot function right now out of grief. There is nothing in my client's will to help me figure out what to do with his business, and the franchise is insisting that they will take over the business in 60 days if we can't find someone to take the business over. What can I do in a situation like this?"
First of all, shame on this franchise, whoever they are. The death of a franchisee should never, ever be grounds for them seizing the business from a grieving widow. Sadly, many of the "death and disability of franchisee" provisions I see in franchise agreements read exactly the same as this one: the estate has an unreasonably short period of time to name a successor to take over the business (often this person needs to pay a fee to do so, which adds insult to injury), and if the estate cannot comply, the franchise seizes the business, leaving the estate with nothing. When reviewing franchise agreements for my clients, I always try to re-negotiate these provisions to make them more fair and reasonable, but obviously it's too late to do that in this case.
What the franchise should do is contact their other franchisees in your vicinity, inform them of the situation, and have one of them manage and operate your deceased client's business for several months until you can find a successor for your client's business. The other franchisee should be allowed to keep 100% of the profits from your client's business during this period as compensation for their services. Ideally, if the other franchisee's territory shares a boundary with your client's, the other franchisee may make you an offer to buy the business from the estate, which will spare you the burden of finding a successor.
What you should do is call the franchise, speak directly to its president or Chief Executive Officer, explain the situation, and request temporary help from another local franchisee. If the franchise refuses to do this, send them a nasty letter by certified mail letting them know you will resist any attempt on their part to seize the business "to the fullest extent of the law". Sometimes even the threat of litigation will be enough to get the franchise's attention and shame them into doing the right thing – after all, the whole franchise system will be watching to see how the franchise handles this situation.
Having said all that, this problem could easily have been solved if your client had put a few very simple clauses into your client's will before he passed away. Anyone who owns a business should talk to their attorneys and at least consider putting some or all of these clauses into their next will.
Clause # 1: Give Your Executor (or Someone Else) Power to Run the Business.
Your will should contain a clause giving your executor or trustee (the person legally responsible for managing your estate) broad powers to run the business until a successor or purchaser can be found. If you suspect your widow or next of kin won't be able to handle the responsibilities, this clause should specifically give your executor or trustee the power to designate another individual (such as your estate attorney, a key employee, or a nearby franchisee) to exercise these powers. Be sure to let the individual know you have done this (and whatever you do, please DO NOT designate me).
Clause # 2: Give Designated Successors a "Right of First Refusal" to Acquire the Business.
If you want your children, or another close relative, to acquire your business, you can instruct your executor or trustee to give them the opportunity to buy the business within a certain time period after your death. This is called a "right of first refusal" – your children will have X days to purchase the business at an agreed-upon price before the business is offered for sale to anyone else or is listed with business brokers.
Clause # 3: Reference Any "Buy-Sell" Agreements.
If there are partners in the business who have signed a "buy-sell" agreement (requiring them to purchase your interest upon your death), be sure to reference this agreement in your will so your executor or trustee, and your estate attorney, knows of its existence.
It isn't fun to think about your own death, but the sooner you address this, the better. In the words of a famous New England tombstone engraving: "As you are now, so once was I; as I am now, so shall you be." And nobody knows how long they've got left.
Cliff Ennico
(
crennico@gmail.com
) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2010 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission Granted for use on Dr.Laura.com.
Staff
2010-08-28T07:52:37Z
Buying a Franchise vs. Starting Your Own Business
Staff
http://www.DrLaura.com/b/Buying-a-Franchise-vs.-Starting-Your-Own-Business/9359.html
2010-08-15T07:51:11Z
2010-08-15T07:51:11Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>I was recently interviewed on this topic for a major online news magazine. The questions and my answers were as follows:
1.
Why do many former corp. executives prefer to buy a franchise rather than starting a business from scratch?
In three words -- safety, security and support. When you buy a franchise, you are buying a model that has been proven successful in dozens, sometimes hundreds, of other places. Also, you get extensive training and 24/7 support. As a result, franchised businesses tend to fail much less often than their standalone counterparts. For middle aged executives (people aged 50 to 60), franchises are especially attractive because the typical franchise term is 10 to 15 years thus creating a "bridge to retirement". The executive can build the business and then either sell it or hand it off to the next generation when it comes up for renewal.
2.
What are the advantages to a "turnkey" business, especially for someone who really didn't start out wanting to have a business of their own?
In two words, "less risk". Unlike a startup business, an existing business has a location (and you often can assume the seller's existing lease without negotiating an entirely new one), employees (and you may want to keep some of them), equipment (most of which doesn't need replacement), and customers (many of whom will likely continue with the business after it changes ownership). Also, because the business has a history, you can review financial statements, tax returns and other data to help you determine how much you will be able to take out of the business each month as compensation (called "Owner's Discretionary Income" or "ODI"), how long it will take you to recoup your investment in the business, and so forth.
3.
What kind of due diligence should you do before signing a franchise contract?
First, you should speak to as many franchisees as possible. Don't be afraid to talk to every franchisee in your area, even if you have to ask the same questions over and over again. Don't just listen to their words: listen to the "music" as well. Do they seem happy? Are they satisfied with the support the franchise is giving them? Are they still as excited about the franchise as they were when they first bought into it? Sometimes the 19th franchisee you talk to will tell you something the first 18 didn't, and that will be the information that helps you decide whether you really want to buy the franchise or not.
Second, don't rely on the franchise's estimates of the cost of starting up the franchised business. Get "real world" quotes in your area and do a spreadsheet showing how and when you will be profitable. Many franchises start in low-cost areas of the country, where real estate and employees are plentiful and inexpensive, only to have their franchise models break down when they expand to the East and West Coasts where everything's more expensive. You have to sell an awful lot of doughnuts each month to pay rent that's $60 a square foot or more.
Third, always, always have an attorney review your franchise contract before you sign it -- even though most franchises don't negotiate or change their franchise contracts, a good attorney can help educate you on the risks of buying that particular business. Also, most franchises will if pressed give you a "clarification letter" explaining provisions in their contract that might be ambiguous -- that could be a useful document to have if you have to sue them down the road.
4.
What are the biggest mistakes your clients make when buying a franchise?
By far, assuming that the franchise will do all of the work of marketing and promoting the business. When you buy a franchise, you are halfway between working for yourself and working for someone else -- you are executing someone else's business model (the franchise's) but you are just as responsible for growing your franchise outlet and generating sales as a startup entrepreneur would be. Franchisees who sit behind the cash register waiting for customers to show up, relying on the franchise name and reputation to generate business, rarely succeed. The people who succeed at franchise ownership take it upon themselves to get out there, hustle, get involved in their communities, and make sure the phones are ringing and the customers are showing up at the door.
5.
Any other advice on the topic?
Buy only franchises that have proven their concept and that have at least 30 to 40 existing locations in different markets. Look for franchises with business models that are likely to last for a long time and are keeping pace with new technologies -- Blockbuster Video® was one of the hottest franchises of the 1980s but I'm not sure how their model will stand up in the age of Netflix and RedBox.
Finally, look at the people -- after all, you are relying on them to be there for you when the going gets rough. Do they have the experience to run the franchise and keep the model up to date? Do they know the industry? Do you trust them? Is the franchise overly dependent on a "key" individual who could get run over by a truck at any time? At the end of the day, if you don't "buy" the people, don't buy the franchise.
Cliff Ennico
(
crennico@gmail.com
) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2010 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission granted for use on DrLaura.com.
Staff
2010-08-15T07:51:11Z
Your "Terms and Conditions of Service" on eBay
Staff
http://www.DrLaura.com/b/Your-Terms-and-Conditions-of-Service-on-eBay-/9360.html
2010-08-15T07:47:00Z
2010-08-15T07:47:00Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>I was privileged to speak at last week's eBay Radio Party in Las Vegas on the topic of "Legal and Tax Update for eBay Sellers". I devoted a good part of my talk to the importance of developing "Terms and Conditions of Service" and making sure they appear on all of your eBay listings, your eBay Store, and so forth.
No sooner did I arrive home from the event, than I received an e-mail from eBay telling me that an eBay seller had just posted a listing for something I was looking for - an antique figurine which I wanted to buy for my wife (just in case you don't know, you can "save" searches on your "My eBay" page, and eBay will notify you when a listing comes up that matches your description).
I was getting ready to bid on the item when my eyes drifted down to the seller's "Terms and Conditions of Service". Here it is, in its entirety, exactly as it appeared in the listing:
"INSURANCE IS INCLUDED IN SHIPPING PRICE.PLEASE SEE ALL PICTURES AS THEY ARE DESCRIPTION.SALES ARE FINAL NO RETURNS , ALL ITEMS INSPECTED BY 8 SETS OF EYES BEFORE LIST. NO RETURNS FOR DO NOT LIKE, DO NOT FIT, ETC.PLEASE READ VERY CAREFULLY, AS I CAN NO LONGER LEAVE FEEDBACK UNTIL RECEIVED DUE TO THE FOLLOWING REASON, STARS, ARE THE SELLER'S PERFORMANCE, NOT EBAYS, FEEDBACK IS NOT THAT IMPORTANT ANYMORE, THOUGH POSITIVE IS GREATLY APPRECIATED IF YOU ARE HAPPY WITH YOUR ITEM, IF NOT CONTACT ME, AND I HAVE HAD PEOPLE LEAVE POSITIVE FEEDBACK, BUT LESS THEN 5 STARS WHEN ITEM WAS SHIPPED IMMEDIATE, EXACTLY AS DESCRIBED,I COMMUNICATED WHEN PAYMENT RECEIVED AND SHIPPED,& some of these were in first class $4.00 shipping charge they left a 1 instead of 5, when I indeed paid extra to ship. I URGE YOU, SEE THE SHIPPING PRICE BEFORE YOU BUY OR BID, BIDDING OR BUYING MAKES YOU LEGALLY RESPONSIBLE FOR AGREEING TO THE SHIPPING PRICE, SO BEFORE YOU LEAVE ME LESS THEN 5 ON THE STAR FOR THE SHIPPING PRICE, OR ANY STAR, PLEASE CONTACT ME FIRST BEFORE LEAVING, AND I WILL BE HAPPY TO SHOW YOU THE SHIPPER'S INVOICE. I ONLY SHIP PRIORITY, WITH A TRACKING NUMBER, AS IT IS THE FASTEST, ,METHOD AVAILABLE AND I SHIP IMMEDIATE ON BUSINESS DAYS. ALSO 1ST CLASS IS ONLY UP TO 13 OZ, AND PEOPLE TEND TO CUT THE SMALL BAGS, AND TEAR THE ITEM, SO NO MORE SMALL 1ST CLASS BAGS. . I DO CHARGE $1.00 HANDLING FEE FOR TAPE, TISSUE, BUBBLE BAGS, INKJET INK FOR PRINTER, ETC., SO IF YOU FEEL THIS $1.00 FOR HANDELING IS UNREASONABLE ENOUGH TO LEAVE A LOW STAR RATING, I URGE YOU NOT TO BUY OR BID AS THIS IS CLEARLY DISCLOSED. WHEN A NEW FEEDBACK SHOWS UP, SO DO THE STAR CHANGES. I THANK YOU IN ADVANCE, AND WISH YOU HAPPY EBAYING AND THANKS FOR STOPPING HERE."
Can you think of several good reasons why I ended up not bidding on this item? First, the seller did not give due regard to grammar, syntax, punctuation or spelling (I suspect the seller does not speak English very well). Second, the seller appears to be a bit paranoid, saying he will provide "no refunds or exchanges" even in situations where the item arrives in damaged condition (which, given the nature of the item, it well might). The reference to "8 sets of eyes" is way overkill - even if 50 sets of eyes look at an item before it is shipped, it could well be damaged in transit. Clearly, this seller has had difficulty with buyers in the past who have given him less than a perfect 5-star rating on eBay's Feedback Forum.
Gee, I wonder why . . . ?
When putting together your Terms and Conditions of Service, make sure:
they are written in plain English (no "legalese" as it will scare buyers off);
to use your "spell and grammar check" tool to make sure English speaking people can read them; and
they are as buyer-friendly as possible so people feel comfortable bidding on your buying your merchandise.
About 100 of eBay's top sellers plus a view of eBay's certified vendors attended the Radio Party event in Las Vegas. Here are some new resources for people selling merchandise on the world's biggest e-commerce platform:
Need to borrow money to finance your eBay inventory but can't borrow from a bank and don't qualify for a "microloan" from the SBA? Kabbage.com, based in Atlanta, Georgia, will make small loans (in the $5,000 to $12,000 range) to qualified eBay sellers without collateral.
Struggling with the recent eBay site changes? A new DVD, "Profit from the eBay Fee & Site Changes" by eBay experts Janelle Elms and Cindy Shebley, will walk you through them and teach you how to cope (the two DVD set is available for $25 at
www.osirockstars.com
).
Can't figure out how to make Facebook work for your business? The Web Sellers' Circle in Seattle, Washington, offers a multi-DVD set called "Grow Your Business on Facebook" that will take you step by step through the process of building a compelling presence on the world's leading social media website (the first DVD, called "Fan Pages on Facebook," is available for $14.99 plus $2.50 s/h at
www.websellerscircle.com
).
Cliff Ennico
(
crennico@gmail.com
) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2010 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission granted for use on DrLaura.com.
Staff
2010-08-15T07:47:00Z
Three Tips To Get You Started Blogging for Business
Staff
http://www.DrLaura.com/b/Three-Tips-To-Get-You-Started-Blogging-for-Business-/9361.html
2010-08-15T07:44:53Z
2010-08-15T07:44:53Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Over the last several years blogging has become the foundation for social media campaigns of businesses big and small. Where Facebook and Twitter help keep companies in the limelight, spreading the word about special events, discounts and newsworthy items, blogs are the place where companies build their reputation and make sales.
As popular as blogging has become, I often hear from home-based business owners who are trying to figure out exactly what a blog consists of and how they can use one to benefit their business. Below are three tips that can help maximize the impact of your business blog.
1. It's All In The Name
Be sure to choose a name for your blog that is both descriptive and easy to remember. Try to stick to either your business name or the name of your star product/service. If none of these are available consider using your name or business tagline. Also, consider possibly adding in your keywords ... such as Publicity Virtual Assistant.
2. Use Keywords Effectively
When you write posts for your business blog be conscious of the words that you choose. Pepper your posts with keywords relating to your business, products, services and brand. These keywords will trigger Search Engine results and help you reach the top of the results for your keywords. Be careful not to overuse keywords, though, because readers will get frustrated and the Search Engines consider that against the rules.
Also, consider keyword phrases - often called long tail keyword phrases (why, I'm not sure!). Long tail keywords are simply a sting of words that make up a phrase that represent your keywords. Think, what would people type in Google to find me. Examples, "how to start a business." Think ... how can I define my blog more (or this particular post). I wrote this blog post on ... (fill in the blank), now what keywords do I need to put in so others can find me?
3. Quality Information (No Fluff!) & Fresh, Regular Content
Another thing to consider when writing business blog posts is to keep your posts informational. The more quality content you offer to readers, the more often they will visit your blog. Also, by posting regularly your readers will get to know the schedule and tend to visit your blog on a regular basis because of it.
You know your audience best. What do they want to hear? Need to hear? Solve that problem that you've been having and you know others are having too. Consider adding in reviews, recommendations, etc. Your blog can be so much more than you talking about your business. What fun thing can you add? Contest, giveaways, etc.
There are many ways to use a blog for business use. If used correctly, a blog can be a terrific tool to inform potential customers of your business. Be sure to update your blog regularly so that the content remains fresh and people coming back for more great information.
Jill Hart
of Christian Work at Home Moms,
CWAHM.com
and
Diana Ennen
of
VirtualWordPublishing.com
have over 35 collective years of experience helping women build careers from home. For more tips visit
http://SoYouWantToBeaWAHM.com
or check out their book, So You Want To Be a Work-at-Home Mom. Permission granted for use on DrLaura.com.
Staff
2010-08-15T07:44:53Z
Murphy's Law And The Entrepreneur
Staff
http://www.DrLaura.com/b/Murphys-Law-And-The-Entrepreneur/9362.html
2010-08-15T07:30:13Z
2010-08-15T07:30:13Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>"My spouse and I recently decided to start a business designing knapsacks for children. We’ve got a bunch of great designs; they're lighter and more flexible than other knapsacks on the market, can be made with 100% organic ingredients, and have a lot more compartments where kids can put their stuff. We both wish these were the sorts of knapsacks we had had as children going to school.
We've approached a couple of manufacturers here in the United States to license our designs. While acknowledging that our designs are superior to anything currently available on the market, they are not buying, which frustrates the Devil out of us. When we press them for an explanation, they become evasive.
We think they're wrong, and are thinking of hooking up with a manufacturer in China and just making these ourselves, but we want to make sure we are not wasting our time and money. What do you think?"
First of all, the marketplace is never wrong. The market wants what it wants, not what you think it should want. Just because you are enamored with your products (like any loving parent, you think your brainchild is the best looking, smartest, most together kid in town), doesn't mean other people will part with their hard-earned money to buy it.
Selling products for kids is extremely difficult, because you have two markets instead of one: the kids (who will wear the knapsacks) and the parents (who will pay for them). These two markets are very different, yet both have to be appeased. If you develop something kids really love that will embarrass their parents, the parents won't cough up the dough. If you develop something the parents really love but the kids consider "uncool", "dweebish" or "dorky", the parents won't waste their money. The teenage guys you want your daughter to go to the prom with are never the guys she wants to be seen with - as in high school, so in business.
I am assuming the manufacturers you are talking to know a lot about these types of products, and sell similar "back to school" products for kids. If so, you should take their warnings extremely seriously. Something is wrong with your marketing strategy, and you need to find out exactly what is wrong before you spend your life's savings on making them yourself.
It sounds to me like you haven't spent enough time talking to kids and their parents. Do some focus groups in your community. Let kids and their parents tell you in no uncertain terms whether or not they are turned on by your designs. Just remember to be sure the focus group participants are total strangers: your friends and neighbors will tell you only what you want to hear, not what you need to hear.
If the results of your focus groups confirm your judgment that these are "hot" products, put some statistics together (perhaps also a video with highlights of one of the focus group sessions) and use them the next time you talk to a manufacturer. It may well be that these manufacturers are out of touch with the market, but they will need to see hard proof before they change their minds.
Also, consider approaching some large media companies and lining up some licensing deals. Putting a "manga" character, an image of a rap artist or Lady GaGa, or one of the "Family Guy" ensemble on these knapsacks may get the manufacturers' attention more than the designs themselves. Some kids will buy anything if the pop culture references are on target.
I realize this is hard advice for you to swallow. Like most first time entrepreneurs, you have a vision of what your success in business will look like, and you have fallen in love with that vision. Success in business is a negotiation between you and your market, and you often have to dilute or compromise your vision to become successful – what we call "stooping to conquer."
Murphy's Law ("everything that can go wrong, will go wrong") applies to entrepreneurs just as it does everyone else. Here are some examples of Murphy's Law in action:
you launch a new product, but it has to be completely redesigned because manufacturers aren't willing to retool their factories unless you guarantee them a production run of 1 million units;
Wal-Mart® expresses an interest in your product, but they want you to deliver 1 million units in 30 days, with a full refund on any items they return to you within 6 months of delivery;
you publish a book for college students, but since college students don't have any money you have to redesign the book from scratch so you can sell it as a "gift item" to their parents and relatives; and
you launch several businesses at once, and the one that takes off and becomes wildly successful is the one you are least interested in doing (or actively dislike doing).
The best entrepreneurs don't fall in love with ideas. They make it a game to find out exactly what the marketplace is looking for at a particular moment, then design the product or service to suit the market's tastes. Even if those tastes are totally opposite to their own.
Cliff Ennico
(
crennico@gmail.com
) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2010 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission Granted for use on Dr.Laura.com.
Staff
2010-08-15T07:30:13Z
Getting Diluted...And Loving It!
Staff
http://www.DrLaura.com/b/Getting-Diluted...And-Loving-It!-/9363.html
2010-08-15T07:27:13Z
2010-08-15T07:27:13Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>"A partner and I started a very successful specialty foods business a couple of years ago. We're not rich, but we're making enough to support ourselves and our families. Last month we were approached by a major distributor that wants to take our products nationwide, selling them in supermarkets, gourmet groceries and specialty food stores. Needless to say, we're very excited by the idea, especially since the distributor is willing to put more than $1 million of its own money into the venture. The problem is the distributor wants 30% of our stock in return for the $1 million investment. We've checked out the distributor and they're very reliable, with a good reputation in the industry. We're just not sure about giving them 30%.
Our concern is if the products are successful, the distributor will put more and more of their money into our company and we will eventually end up working for the distributor. Is there any way to avoid that? We don't want to lose the deal with the distributor, but we don't want to lose our control in the process."
At first, "getting diluted" sounds like something college students do on Spring Break. But it's an inevitable part of the process of growing a successful company.
Here are the basics. When a company is first started, the founders own 100% of the stock. You are entitled to 100% of the business profits, you have all the voting power, and you make all the management decisions. But then an investor buys a piece of your company. Since you cannot own more than 100% of anything, the founders split whatever's left after the new investor comes in.
For example, if Joe and Emily are 50/50 partners, and then sell a 30% interest in the company to Sam, Joe and Emily are left owning 70% of the company (35% each) and Sam owns the remaining 30%. If Emily and Sam become friendly and start voting together as a 65% block, Joe will be left out in the cold. Don't laugh; these things happen.
The reduction in Joe's and Emily's percentage ownership of the company (from 50% to 35% each) is called "dilution". The mathematics of dilution are quite simple, but the emotional impact of dilution is often very hard to swallow. It's the same as a parent who has just dropped his only child off at college – your business is no longer "your baby". It has left the roost, and while you still have a role in its future, you have to share that future with others. Many company founders don't partner well with others, and have difficulty accepting dilution, but dilution is an inevitable part of life when the founders of a growing company don't have enough capital of their own to grow the business themselves.
In this case, the new investor is not just putting in money – they are a reputable nationwide distributor that will be able to land your products on supermarket and grocery store shelves. This is a very, very good thing for a specialty foods company. Chances are if the new product rollouts are successful, this company will be worth more – much, much more – than it did before. You will own less of the company, but your lower share will be worth a lot more than your bigger share does today.
Here's a question for you: if someone offered you the choice between $10 million in cash, or one percent of Microsoft® Corp. stock, which would you accept? Before you grab the cash, do a little research on Microsoft's market capitalization these days. That one percent is worth a lot more than $10 million. Some of the richest entrepreneurs on Planet Earth own only a fraction of their company's stock. If your specialty foods business becomes the next Ben & Jerry's® or BearNaked® and all you own is one or two percent of the stock, I think you will be quite happy with that.
Having said that, though, there are ways you can protect yourself from being diluted too far, too fast, and maintaining as much control of your company as you can. Talk with your attorney about the following possibilities:
requiring new investments and other major company decisions can only be made by 100% of the owners, giving you and your partner the power to veto them (lawyers call this a "supermajority voting" provision);
creating a separate class of stock (owned by only you and your partner) with veto power over branding, recipes and other "product quality" type decisions;
putting a "floor" on your dilution (for example, requiring your consent if dilution would leave you and your partner with less than 15% of the company); and
having the company sign employment agreements with each of you that cannot be terminated without the payment of a huge sum of money (called a "golden parachute").
Cliff Ennico
(
crennico@gmail.com
) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2010 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission Granted for use on Dr.Laura.com.
Staff
2010-08-15T07:27:13Z
Finding a Telecommuting Opportunity In This Crazy Economy
Staff
http://www.DrLaura.com/b/Finding-a-Telecommuting-Opportunity-In-This-Crazy-Economy/9364.html
2010-08-15T06:49:48Z
2010-08-15T06:49:48Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>My first step into the work-at-home world was as a data extractor for a company in my local area. Believe it or not, I found that job in the Classified Ads section of the newspaper. That, however, was ten years ago. A lot has changed in the last ten years - the internet alone has grown by leaps and bounds. So, what are some of the best ways for people in today’s market to find a telecommuting opportunity?
Classified Ads
One good thing about the technology available to us today is that most Classified Ads are now not only listed in print newspapers, but online as well. Take a look through these to see if there are businesses in your area looking for local at-home workers.
Online Job Sites
Most online job websites now offer telecommuting listings. Use the search term "telecommute" to help give you the best results. There are even websites that cater to the work-at-home crowd such as HireMyMom.com. Remember – always be sure to read the fine print, and research each company/opportunity that interests you.
Freelance
More and more at-home workers are freelancing on a contract basis. Writers, web designers, graphic artists, and more are finding this a viable option to allow them to work from home. There are websites, such as elance.com, that cater specifically to the freelance community and make it easy for freelancers to connect with companies and individuals looking to hire them.
Start A Business
Other trend among telecommuters is heading out on their own. Taking the data entry and executive assistant skills that they’ve gained over the years, these at-home workers are now launching their own Virtual Assistant (VA) services, Copy-writing services and other such businesses.
There are an amazing amount of resources for telecommuters today. These positions are in high demand, so be sure to polish your resume and tailor it to fit the type of work that you’re searching for. Be persistent - it may take a while to locate the right opportunity, but it will be well worth the wait.
Jill Hart's
entrepreneurial career began in her teens when she spent a summer working with her father who ran his own business. When he put her in charge of a Coke machine and allowed her to keep the profits, she saw the benefits of being her own boss. She is the founder of the popular Christian work-at-home website CWAHM.com and mentors business owners who are starting out or need that extra "push" to take it to the next level. Permission Granted for use on Dr.Laura.com.
Staff
2010-08-15T06:49:48Z
Should You Sign That Nondisclosure Agreement?
Staff
http://www.DrLaura.com/b/Should-You-Sign-That-Nondisclosure-Agreement/9365.html
2010-07-24T02:46:41Z
2010-07-24T02:46:41Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>"I am a leading authority on a certain management topic. Since being laid off last year I am writing a book on this topic and have started a number of online ‘blogs’ to help promote interest in my expertise. I have picked up a few paid speaking engagements, and might be doing some consulting work for a couple of large corporations in the near future.
At one of my speaking engagements I was approached by a fellow who is starting a website devoted to this topic. He was interested in having me sit on his board of advisors, and told me he wanted me to write some articles specifically for his website, as the association with my name would help him promote the website to corporate users.
I was intrigued by his offer, but he has sent me a Nondisclosure Agreement he wants me to sign before he will meet with me to discuss my role in his website project. Now, I have no intention of blabbing his trade secrets to anyone, and the agreement looks pretty harmless overall, but there’s a clause in there saying I cannot use any of his information if I work with a competing business. That makes me a little nervous. I am talking to a lot of people in the industry, and I don’t want to have to get this guy’s permission each time I talk to someone. Am I right to be concerned about this, or will I look like a fool or a ‘newbie’ if I refuse to sign his agreement?"
I have four words of advice for you: don’t sign this agreement.
Nondisclosure agreements, also called NDAs for short and sometimes "confidentiality agreements", are usually pretty harmless. This individual will be sharing with you a lot of detailed information about how his site will work, his business plan, and so forth, and he wants to be sure that information doesn’t leak out to potential competitors. Since he doesn’t know you very well, he is right to protect himself and his company against that risk. So far, so good.
But quite a few entrepreneurs use their nondisclosure agreement as a "red herring" for something else. What they really want is to lock up your expertise so that you can’t work for anyone in the field but them without getting their permission. That way, if they see you working with someone they don’t like, or doing something they don’t like, they can have their lawyers send you a nasty letter threatening you with a lawsuit if you do not "cease and desist" the offending behavior immediately unless you can show you are NOT abusing their confidential information. Good luck trying to prove that!
These people know that you probably won’t sign a noncompete agreement, especially in a situation like this where they aren’t offering you any money for your services or your website content, so they wrap their noncompete language in a seemingly harmless "nondisclosure agreement" which they know you will be more likely to sign. That is exactly what is happening here.
Also, I would be nervous about signing on to this company’s "board of advisors". While an appointment like that is purely honorary and you do not have any of the legal liability risk that the actual directors and officers of the company have, your membership on the board may suggest to other people (wrongly) that you have an exclusive or preferred relationship with them. For example, let’s say they enter into an agreement with a large corporation, under which the corporation is prohibited from soliciting business from any of the company’s "employees, agents, affiliates, alliance partners or anyone else with whom the Company has a business relationship" as long as the agreement is in effect. In that case you will be blocked from working for that corporation (they won’t even talk to you for fear of breaching their agreement), even though you are not personally bound by that agreement and are 100% free to seek business from the corporation.
Nondisclosure agreements can be treacherous animals; never sign one without having it reviewed first by a competent business lawyer. At the very least, the clause prohibiting you from using the company’s information in a competing business should be stricken.
A properly drafted nondisclosure agreement will prohibit you from:
disclosing the company's "confidential information" (this will be defined in the agreement) to anyone outside the company; and
using the company's "confidential information" for your own purposes.
Anything else is suspect.
I also recommend adding the following clause to ANY nondisclosure agreement you sign, even if it seems harmless: "This is a nondisclosure and confidentiality agreement only, does not create an exclusive business relationship of any kind, and may be terminated at any time on written notice. Nothing in this Agreement shall be deemed to prohibit or restrict you from performing services similar to those you will be performing for the Company for any other person, firm or entity whatsoever."
If the company refuses to add that clause, you are "on notice" of their true intentions, and should pass on the opportunity.
Cliff Ennico
(
crennico@gmail.com
) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2010 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission Granted for use on Dr.Laura.com.
Staff
2010-07-24T02:46:41Z
Ten Twitter Tips for Work-at-Home Moms
Staff
http://www.DrLaura.com/b/Ten-Twitter-Tips-for-Work-at-Home-Moms/9366.html
2010-07-17T07:25:22Z
2010-07-17T07:25:22Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Social Media is quickly growing into one of the most-used marketing tools for work-at-home moms. One of the largest social media websites, Twitter.com, can be an effective way to spread the word about your business and learn from other top representatives in your business niche. However, it can take a lot of time to determine the best ways to use Twitter effectively for business. Below are ten tips to help shorten that learning curve.
1. Choose a Meaningful User name
If possible, grab your business name as well as your own name for use on Twitter. Having an easy-to-find and easy-to-remember username is essential.
2. Brand your Twitter page
Don’t leave your Twitter page boring and plain - spice it up. Make sure you add your logo, contact information and any other information that will be helpful for customers and visitors to your page. You can use a website such as TwitBacks.com to create a free or very low-cost background to bring life to your page.
3. Learn the Lingo
Twitter can be very useful, but it can also be very frustrating … especially if you have no idea what all those little symbols mean that fly across the screen. Take the time to research the meanings of the tags most often used on Twitter. One great place to do so is right on Twitter itself:
http://help.twitter.com/portal
4. Follow industry leaders
Veteran entrepreneur Diana Ennen shares this tip: "I love to follow industry experts on Twitter and gain all their business insight. It’s almost like being right there in their office and getting in on their trade secrets. Not only do they post tips and how to information, but often share their business successes and mistakes and that allows me to learn from them. It’s so worth it!"
5. Interact
Don’t be shy! Take a few minutes each day to comments on what others are discussing or to throw out a question or idea. You never know when a topic is going to spark a response and help you build relationships with customers and your fellow Twitter users.
6. Don't make it all business news - be YOU
It's great to share about the things going on in your business and you certainly will want to share specials, discounts and other items of interest to your customers. However, as a small business owner you have the unique ability to put a personal face on your business. Let your customers and readers get to know a little about you as well as your business.
7. Run Contests
Twitter is a great fast-paced way to a run a contest. By having a great prize you can create a viral network of "tweets" about your company and the giveaway you're holding. Sit down beforehand and plan out some great 140 character tweets that you can use throughout the giveaway time - whether that be minutes, hours or even days.
8. Share
Make your Twitter feed a worthwhile read for your customers. Share tips that apply to your target market, links to articles and other informational tidbits. Create a #hashtag for your business or topic (see #3 above) so that you can track re-tweets and mentions of your posts.
9. Be Thankful
A great way to make friends and build contacts is to thank others who re-tweet (RT) your posts. Send a shout-out saying thanks or feature them at special times like FriendFriday (#FF). They'll know that you're grateful and you'll build a community that supports you - and each other.
10. Promote Others
Contrary to popular belief it IS in your best interest to work together with other entrepreneurs and to help spread the word about great things that they may be doing. Not only will people be drawn to your Twitter feed for great information, but they will see that you're willing to share about more than your own interests. Another great benefit is that those you help promote will one day be there to help promote you as well.
Twitter is a great marketing tool for work-at-home moms. It can help drive traffic to your website as well as aid you in building relationships with your target market. Use the tips above to help guide you in how to best use social media to benefit your business and your customers.
Jill Hart's
entrepreneurial career began in her teens when she spent a summer working with her father who ran his own business. When he put her in charge of a Coke machine and allowed her to keep the profits, she saw the benefits of being her own boss. She is the founder of the popular Christian work-at-home website CWAHM.com and mentors business owners at
http://SuccessfulChristianWomen.com
. Jill is also the co-author of So You Want To Be a Work-at-Home Mom (Beacon Hill Press, 2009). You can find her on Twitter at
http://twitter.com/cwahm
. Permission granted for use on DrLaura.com.
Staff
2010-07-17T07:25:22Z
The New I.R.S. Reporting Form 990-N For Small Charities
Staff
http://www.DrLaura.com/b/The-New-I.R.S.-Reporting-Form-990-N-For-Small-Charities/9367.html
2010-06-19T07:25:34Z
2010-06-19T07:25:34Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>"I run a small charity that operates a food bank for homeless people in our town. We’ve been around for about 10 years now, and while people do occasionally give us money, we've never had more than $25,000 in donations in any given year. I recently read that we now have to file an Annual Report with the Internal Revenue Service, and that the deadline has already passed. Yikes! Nobody told us about this. Are we in really hot water here?"
The short answer is "no," but you probably will have to file the form.
A bit of background. Nonprofit organizations that apply for tax exemption under Section 501(c)(3) of the U.S. Internal Revenue Code get two very, very big tax breaks:
they do not have to pay federal taxes (or state taxes either if they notify their state tax authority that they have a federal exemption); and
the people who donate money to the organization can deduct the donation on their tax returns.
If a 501(c)(3) nonprofit organization takes in more than $25,000 in donations in a given year, they are required to file an Annual Report form on IRS Form 990 or Form 990-EZ. The vast majority of nonprofits never reach this threshold amount, though. Also, since many small nonprofits operate informally using volunteer staff, and no accountant or bookkeeper is keeping track of their income and expenses, even some nonprofits that take in more than $25,000 in annual donations don't file the IRS form.
Those days of blissful ignorance are now over.
Beginning May 15, 2010, the IRS requires small tax-exempt organizations with annual gross receipts of $25,000 or less may be required to electronically submit Form 990-N, also known as the "e-Postcard", unless they choose to file a complete Form 990 or Form 990-EZ.
There are some exceptions. The following nonprofits need not file Form 990-N each year:
organizations that are included in a group return (for example, many college alumni/ae organizations are folded under the college's tax exemption and do not have an exemption of their own);
churches, their integrated auxiliaries, and conventions or associations of churches; and
organizations that are required to file a different return (such as private foundations, which file Form 990-PF).
The e-Postcard is due every year by the 15th day of the 5th month after the close of the organization's tax year. So, for example, if an organization's tax year ends on December 31, the e-Postcard is due by May 15 of the following year. The e-Postcard cannot be filed until after the organization's tax year ends (so, in the above example, filing on December 15 will have no effect).
Because the IRS did not publish this new requirement until a couple of days before May 15, 2010, a lot of small calendar year nonprofits did not have enough time to file the e-Postcard. The good news is that the IRS is allowing non-profits to file their e-Postcards late without penalty.
If an organization does not file its e-Postcard on time, the IRS will send a reminder notice but the organization will not be assessed a penalty for filing the e-Postcard late. However, an organization that fails to file the required e-Postcards (or other annual report forms) for three (3) consecutive years will automatically lose its tax-exempt status effective the filing due date of the third year. Not a good thing.
There is no paper form: Form 990-N must be filed electronically at the following Web page:
http://epostcard.form990.org
. Note that this is not part of the IRS website; the electronic filing of e-Postcards is being handled by the IRS' "trusted partner," the Urban Institute.
When filling out the e-Postcard, an organization must provide the following information:
The organization's Employer Identification Number (EIN), also known as a Taxpayer Identification Number (TIN));
The organization's tax year;
The organization's legal name and mailing address;
Any other names the organization uses;
Name and address of a principal officer;
Web site address if the organization has one;
Confirmation that the organization's annual gross receipts are normally $25,000 or less); and
If applicable, a statement that the organization has terminated or is terminating (going out of business).
So, no big deal, right? Just go online, answer the questions, and you're done? Well, wait a minute.
Before going online to fill out the e-Postcard, an organization should check with an accountant, CPA or tax advisor to make 100% sure its annual gross receipts are $25,000 or less. The e-Postcard is a tax return after all, and any statement on it is made under penalty of perjury.
More importantly, small nonprofits need to make 100% sure they continue to qualify for tax exemption. The e-Postcard requirement suggests that the IRS will be taking a closer look at small nonprofits to make sure they deserve exemption from federal taxes. If the IRS determines an organization has not been living up to its charitable purpose (or, more seriously, has income from for-profit activities that it hasn't reported to the IRS), its tax exemption may be lost, and the people in charge will be in a heap of trouble.
For more information about Form 990-N, go to the Internal Revenue Service website at
www.irs.gov
and type "Form 990-N" into the website search box.
Cliff Ennico
(
crennico@gmail.com
) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2010 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission Granted for use on Dr.Laura.com.
Staff
2010-06-19T07:25:34Z
It's Your Company Now...Except For The Owners
Staff
http://www.DrLaura.com/b/Its-Your-Company-Now...Except-For-The-Owners/9368.html
2010-06-12T08:10:28Z
2010-06-12T08:10:28Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>"I've been out of work for quite a while now, but have been given the opportunity to work for a friend of mine who has a fast-growing technology company.
The business is organized as a limited liability company (LLC) and my friend has been the sole owner up to now, but he is planning to raise capital from several individual investors who are friends of his from the local country club.
I would be the President and Chief Executive Officer of this company. My friend would still own the majority of shares in the company but says he would not be involved in the day to day operations of the business as he wants to pursue other interests. He has asked me to sign an Employment Agreement which, among other things, would prohibit me from working for another company in the same or a similar business for three years after I leave the company.
I know I should have the Employment Agreement reviewed by an attorney before I sign it, but are there any other things I should be concerned about before I say 'yes' to this opportunity?"
You bet there are . . .
Your friend seems to be going to great lengths to convince you that you will have "free rein" to run the company as you see fit, and that he and his fellow country club mates will just sit back and watch while the money rolls in.
Don't believe a word of it.
If this has been his company since Day One, it will be impossible for him to just sit back and watch while you run it. I guarantee he will be in your face every day, micro-managing every step in the operation, telling you what to do, when to do it, and how to do it.
Even if he's a good guy, he has a fiduciary duty to the investors he brought in and may be exposing himself legally to them if he spends too much time on the golf course.
What your friend wants is a flunkey who will do all the dirty work while he and his buddies kick back with a brew at the country club, enjoy the good life, and make all the strategic decisions you will then be expected to implement . . . or else.
One of the most rigid and inflexible rules of the entrepreneurial world is that "you should never join a family business if you are not a member of the family, or have married into it." That is the situation you are being asked to buy into here.
In addition to reviewing your Employment Agreement, your attorney should also look at the Operating Agreement for your friend's LLC - the document (similar to a Shareholders Agreement for a corporation) that says who the owners of the business are, who will run the business, who makes the big decisions, and so forth. If you are not named as the "manager" of the LLC, then the LLC will continue to be run by the owners. If your friend will be the majority owner after he brings his investor buddies on board, then you will be reporting to him.
To ensure that you will have "free rein" to run the business:
the Operating Agreement should clearly state that the LLC is run by one or more "managers," not the owners;
you should be named as the sole Manager; and
the Agreement should state that you can be removed from your Manager position only "for just cause" - for example, you are convicted of a felony, embezzle funds from the company, or engage in fraudulent activity that leads to a grand jury indictment.
If the Employment Agreement grants you shares in the company, or options to acquire shares, these should be voting shares giving you the right to attend meetings of the LLC owners and a veto power over major decisions (such as mergers and acquisitions, or the sale of a key product) which might put you out of a job.
You should also consider asking for a "no jerk-around" clause in your Employment Agreement. This is a provision entitling you to quit your job without further obligation to the company (including the three-year noncompete) in the event the LLC owners take action that will make your life miserable, for example:
forcing you to relocate your home or office more than 50 miles from its present location;
denying you office space, reducing your support staff, or taking away other perquisites that a Chief Executive Officer normally enjoys;
making management decisions without your participation; and
significantly increasing the amount of travel you are required to perform.
Oh, and while you're at it, why don't you ask for a membership in your friend's country club, with dues paid by the company? If your friend balks at that, it's a sure sign he sees you as a potential caddie, not a potential member of his golf foursome.
Cliff Ennico
(
crennico@gmail.com
) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2010 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission Granted for use on Dr.Laura.com.
Staff
2010-06-12T08:10:28Z
Do Atheists Have A Right To A "Religion Free Workplace"?
Staff
http://www.DrLaura.com/b/Do-Atheists-Have-A-Right-To-A-Religion-Free-Workplace/9369.html
2010-06-09T07:57:56Z
2010-06-09T07:57:56Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>"I own a commercial nursery with about 30 seasonal employees. My kids also work for me. One morning, my daughter tacked a hand-made poster with a Bible verse on my door. It referred to flowers and nature. My door faces into the break room.
One of my supervisors tore down the poster and told me we were violating her rights to a religion-free workplace. She's worked for me for 18 years as is a valuable employee.
I was shocked. Is she right? Do I have the right to fire her for doing this?"
Well, here’s a twist. Once upon a time, people had to fight to have their religious views respected in the workplace. But at least in the United States, a significant segment of the population, bolstered by books such as Christopher Hitchens’ "God Is Not Great: How Religion Poisons Everything" and movies such as Bill Maher’s "Religulous", identify themselves as atheists or secular humanists.
These folks want their rights too, and are fighting against what they perceive as society’s bias in favor of religiously minded people.
There is (as yet) no constitutional right to a "religion free workplace" - the supervisor is dead wrong about that. In fact, attempting to create such a workplace may expose this employer to liability for denying religious employees the constitutionally-guaranteed right to express their beliefs in the workplace.
Generally, employers are required by law to make "reasonable accommodations" to employees with religious needs, just as they are required to do for the disabled. Title VII of the federal Civil Rights Act of 1964, among other laws, offers broad protections to religious-minded people. If a person’s religion prohibits him from cutting his hair, and having long hair doesn't interfere with his work or create a hazardous work environment (for example, the employee sits at a desk all day and is not required to operate machinery in which his long hair could get caught), an employer cannot legally require the employee to cut his hair, or deny him a promotion on the basis of his appearance.
The courts have been equally strict about not allowing one employee to create a hostile work environment for others by harassing them about what they do or don't believe. An evangelical Christian employee who passes out copies of the Gospel of John to all of his Jewish coworkers in an effort to convert them to Christianity would almost certainly have to be reprimanded for his behavior, and possibly terminated if he fails to cease proselytizing in the workplace after due warning.
Posting a Bible quote on an office wall, as the reader's daughter did, almost certainly would not be viewed as creating a hostile environment, especially as the quote in this case is not designed to express a view that excludes, belittles or threatens people of other religions (as compared to, for example, a wall poster saying "Jihad against non-believers is necessary in the service of God" or "Members of Faith X are guilty of killing and eating children"). Most atheists of my acquaintance have nothing against flowers or nature, to my knowledge, and would probably agree with the quote regardless of its origin.
By tearing down the poster in full view of the reader's daughter and (presumably) other employees in the break area the worker may have helped to create a hostile work environment for religious people that may justify a reprimand or termination.
The first thing this reader should do is consult with an attorney who specializes in civil rights or employee relations law to determine how the local federal courts have construed the rights of non-religious people in the workplace. If those courts' rulings are consistent with my analysis above, the reader should then meet privately with the supervisor and tell her in no uncertain terms that if she believes a hostile work environment has been created by any other employee's actions, she should speak first to her boss (the reader) before taking unilateral action that may expose the entire company to a lawsuit and negative publicity.
Assuming that doesn't work, and recognizing that the supervisor is a valued employee whom the reader would be reluctant to terminate, there are two "common sense" options:
Do Nothing: it will cost tens of thousands of dollars to bring a federal lawsuit for religious discrimination, and hundreds of thousands more dollars to reach a judgment - unless the supervisor is extremely wealthy (or has the backing of a well-funded atheists' rights group who can afford to bring a "test case"), it is highly unlikely the supervisor will sue her employer; or
Re-post the offending wall poster and quotation but cover over that portion of the poster that attributes the quote to the Christian Bible - as far as I can tell God is pretty mellow about such things and probably won't sue this company for infringing His copyright to the quote.
Although, wouldn't it be a gas if He did? We wouldn't have to worry about atheists' rights then, would we?
Cliff Ennico
(
crennico@gmail.com
) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2010 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission Granted for use on Dr.Laura.com.
Staff
2010-06-09T07:57:56Z
How Not To Protect Your Personal Assests From Lawsuits
Staff
http://www.DrLaura.com/b/How-Not-To-Protect-Your-Personal-Assests-From-Lawsuits/9370.html
2010-06-02T07:07:11Z
2010-06-02T07:07:11Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>How Not To Protect Your Personal Assests From Lawsuits
By Cliff Ennico
www.creators.com
"I am just beginning to recover from very near destitution after my wife's serious health problems and her death. I will finally be getting some money soon and I'm planning to buy a Wyoming shelf corporation under which I will run a Web-based retail business. During the past few years I have read books, listened to CD's and watched DVD's about corporations and revocable living trusts.
I was unaware of the possibility of being personally liable while working for my corporation. It is my understanding that if my corporation owns my house that all the expenses are tax deductible, such as lights, telephone, heating and cooling. And the same is true of my automobile. If my trust (not formed yet) owns my car and I use it exclusively for business and I have an accident in which I am charged with negligence, can my trust be sued?"
E-mail messages like this always make me wonder what kinds of books are out there that people are reading. While this reader was obviously distracted by personal tragedy, he has picked up a lot of misinformation that will need to be straightened out, so here goes.
A "revocable living trust" does not protect your assets from lawsuits. It is merely a device to avoid probate. When you die, any assets put in the trust bypass your will and go directly to the trust beneficiaries (your children or other relatives) without going through the long and stressful probate process.
Since you are usually the "trustee" of the living trust as long as you live, and have considerable control over the trust assets, the trust will not be considered a separate entity for purposes of lawsuits. Anyone suing you will be able to reach the trust assets. The only way to avoid that is to have someone else - someone totally independent from you and your family, such as the trust department of a local bank - act as the trustee of the trust. While that will protect the trust assets from legal liability, it also means that the trustee, not you, decides what to do with the assets as long as you’re living.
Now let’s talk about that Wyoming corporation. Unless you are a resident of Wyoming and will be conducting your business there, a Wyoming corporation does you absolutely no good. You will have to register the Wyoming corporation as a "foreign" corporation in your home state, and will have to register for state and local taxes there. You do not avoid those by incorporating in Wyoming or anywhere else. Your corporation or LLC should be formed in the state where you reside and do business. Period.
Putting assets into a corporation which you control will not protect them from lawsuits. While the assets belong to the corporation, your shares in the corporation are still a personal asset and can be seized by your creditors. Attaching shares of stock in a lawsuit is usually a lot easier than putting a lien on real estate, so by doing this you are actually making it easier for your creditors to get hold of those assets.
Also, putting real estate in a corporation, especially a regular or "C" corporation, is a very bad idea tax-wise. Talk to your accountant or tax advisor about that.
Having your corporation lease a car to you gives you some tax benefits, but it does not protect you from liability if you are involved in a traffic accident. The injured person is legally entitled to sue not only your corporation, as the owner of the vehicle, but you personally, because you were the driver whose negligence caused the accident. Even with a corporation, you will need auto insurance on you personally, although the corporation may be able to pay the premiums and take a deduction if you are a W-2 employee of the corporation. Ask your accountant or tax advisor about that.
So what can you do to protect your personal assets from legal liability? Here are some suggestions to discuss with your attorney and/or accountant:
form a corporation or LLC in your home state (not Wyoming), and make sure you use it when conducting business online - that should protect your personal assets against lawsuits without your having to set up a separate trust;
consider transferring title to your house and other key assets to a friendly relative (such as your mother), but be sure that person changes his or her will so that you get those assets back if he or she dies prematurely - also be sure to have a written lease with that person allowing you to live in the house rent-free (or One Dollar a year) until you die; and
if you are working out of your home, consider taking the "home office deduction" on your tax return - you may find that will give you better tax benefits than forming a corporation and "living through the company".
Cliff Ennico (
crennico@gmail.com
) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2010 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM. Permission Granted for use on Dr.Laura.com.
Staff
2010-06-02T07:07:11Z
The Slow But Steady Resurgence Of "eBay Nation"
Staff
http://www.DrLaura.com/b/The-Slow-But-Steady-Resurgence-Of-eBay-Nation/9371.html
2010-05-15T08:27:33Z
2010-05-15T08:27:33Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>By Cliff Ennico
www.creators.com
eBay has always meant a lot of things to a lot of people, but it has traditionally been viewed as two separate entities:
it is a Fortune 500 corporation based in San Jose, California that provides an e-commerce platform for people buying and selling goods online; and
it is a community of millions of buyers and sellers worldwide who sell goods on the eBay platform (what eBay calls its "community" but which I like to refer to as "eBay Nation").
eBay Nation has not been a happy place the past couple of years. Between fierce competition from other e-commerce platforms (primarily
Amazon.com
), tough new rules that eBay handed down in 2008 to weed out sellers that weren't committed to behaving in a businesslike fashion on the site, the shutting down of such popular eBay seller support programs as "eBay University" and the annual "eBay Live!" trade show, yearly fee increases, and a general perceived tilting of the platform in favor of buyers over sellers, a lot of people have been concerned that eBay "the corporation" has been exalted at the expense of eBay "the community".
But fear not; I bring glad tidings of great joy. eBay Nation is slowly but surely getting back on its feet again. In the true spirit of entrepreneurship, an intrepid number of eBay sellers and employees of eBay's "Community" section are reviving and in some cases re-creating the community spirit that always set eBay apart from its competition.
Some cases in point:
eBay on Location
. While eBay University is sadly no more, eBay has launched "eBay on Location", a series of one-day events designed to help eBay sellers improve their performance, network with other sellers in their area, and build "real" businesses on the site. Programs are held every two to three months, usually on a Saturday in a major U.S. city, and feature nationally recognized small business expert speakers such as John Jantsch, the author of "Duct Tape Marketing", and Rieva Lesonsky, former editor of Entrepreneur magazine and founder of GrowBiz Media (
www.growbizmedia.com
). For more information and a schedule of upcoming "eBay on Location" events, see
www.ebayonlocationevents.com
.
eBay Radio
. If Internet radio has a future at all, it is to serve as a media outlet for special-interest communities such as eBay sellers. For the past seven years, eBay has hosted its own radio call-in show featuring Jim "Uncle Griff" Griffith, a veteran eBay employee (
www.unclegriff.com
). To subscribe to eBay Radio's RSS feed and listen to the twice-weekly shows, see
http://groups.ebay.com/forum/Ebay-Radio-Broadcasts/Welcome/1278?&
. To ask Uncle Griff a question on the show, call (888) 708 6226, Tuesday's from 11 a.m. to 2 p.m. Pacific Coast time, and Thursdays from 3 p.m. to 5 p.m. Pacific Coast time.
eBay Town Hall Events
. Throughout the year, eBay hosts 90-minute audio Town Hall events, broadcast over the Internet via eBay Radio, where eBay sellers can submit (via email or phone) your comments, suggestions and questions directly to a panel of eBay Marketplace leaders. For more information and a schedule of upcoming Town Halls, see
http://pages.ebay.com/townhall
.
eBay Radio Party
. For those eBay sellers who miss the camaraderie of the "eBay Live!" trade show, eBay Radio hosts an annual two-day "Radio Party" in Las Vegas, featuring eBay and small business experts from around the country and the same "Mardi Gras meets Woodstock" atmosphere that happens whenever hundreds of eBay sellers gather in one place. This year's event will be held June 23 and 24 at the Paris Las Vegas Hotel. To register, see
http://events.constantcontact.com/register/event?oeidk=a07e2ta0mlneb71ae6d
or send an e-mail to
ebetsy@swbell.net
. Full disclosure: I will be speaking on "Tax and Legal Answers for a Business on eBay" at this event.
A New Social Media Marketing Tool for eBay Sellers
. More and more eBay sellers are creating Facebook pages, LinkedIn profiles, and Twitter tweets, and are looking for ways to promote their eBay auctions and fixed-price listings with social media. A new service at
www.fflap.com
, recently certified by eBay, enables eBay sellers to select relevant items to inform their social networks about, add a personalized message, schedule messages and then track and graphically report the success of the listing message through bidding to sale. With tracking and reporting, users can adjust their fflap strategy to maximize results for a specific trading style.
Fflap, which is available both on the web and the iPhone, has been developed for anyone who sells using eBay. A basic free service allows access to a set of tools and gives registered members a chance to use the service for free, for life. For an additional subscription fee starting at $2.50 for the "premier version" and $3.00 for the "professional version", eBay sellers gain access to tracking, reporting, scheduling, greater daily fflap allowances, early releases, tools and premium support.
Cliff Ennico
(
crennico@gmail.com
) is a syndicated columnist, author and former host of the PBS television series "Money Hunt." This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
.
COPYRIGHT 2010 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS.COM
. Permission Granted for use on Dr.Laura.com.
Staff
2010-05-15T08:27:33Z
21st Century Job Strategies: 10 Tips for Making Work Better
Staff
http://www.DrLaura.com/b/21st-Century-Job-Strategies:-10-Tips-for-Making-Work-Better
-
- /9372.html
2010-05-07T08:53:00Z
2010-05-07T08:53:00Z
Staff
2010-05-07T08:53:00Z
A "Real World" Guide To Time Managment (Part 2)
Staff
http://www.DrLaura.com/b/A-Real-World-Guide-To-Time-Managment-Part-2
-
- /9373.html
2010-05-07T08:53:00Z
2010-05-07T08:53:00Z
Staff
2010-05-07T08:53:00Z
A "Real World" Guide To Time Managment (Part 3)
Staff
http://www.DrLaura.com/b/A-Real-World-Guide-To-Time-Managment-Part-3
-
- /9374.html
2010-05-07T08:53:00Z
2010-05-07T08:53:00Z
Staff
2010-05-07T08:53:00Z
Facebook Safety: Waking up with a Social Media Hangover
Staff
http://www.DrLaura.com/b/Facebook-Safety:-Waking-up-with-a-Social-Media-Hangover
-
- /9375.html
2010-05-07T08:52:59Z
2010-05-07T08:52:59Z
Staff
2010-05-07T08:52:59Z
Should You Consider Buying A Company's Stock?
Staff
http://www.DrLaura.com/b/Should-You-Consider-Buying-A-Companys-Stock
-
- /9376.html
2010-05-07T08:52:59Z
2010-05-07T08:52:59Z
Staff
2010-05-07T08:52:59Z
A "Real World" Guide To Time Managment (Part 1)
Staff
http://www.DrLaura.com/b/A-Real-World-Guide-To-Time-Managment-Part-1
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- /9377.html
2010-05-07T08:52:59Z
2010-05-07T08:52:59Z
Staff
2010-05-07T08:52:59Z
Partnership Splits: Some Tricky Questions
Staff
http://www.DrLaura.com/b/Partnership-Splits:-Some-Tricky-Questions
-
- /9378.html
2010-05-07T08:52:58Z
2010-05-07T08:52:58Z
Staff
2010-05-07T08:52:58Z
Seven Things You Should Be Doing Between Now and April 15 (Part 1)
Staff
http://www.DrLaura.com/b/Seven-Things-You-Should-Be-Doing-Between-Now-and-April-15-Part-1
-
- /9379.html
2010-05-07T08:52:58Z
2010-05-07T08:52:58Z
Staff
2010-05-07T08:52:58Z
Seven Things You Should Be Doing Between Now and April 15 (Part 2)
Staff
http://www.DrLaura.com/b/Seven-Things-You-Should-Be-Doing-Between-Now-and-April-15-Part-2
-
- /9380.html
2010-05-07T08:52:58Z
2010-05-07T08:52:58Z
Staff
2010-05-07T08:52:58Z
You Know You Have A Business On eBay When...
Staff
http://www.DrLaura.com/b/You-Know-You-Have-A-Business-On-eBay-When...
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- /9381.html
2010-05-07T08:52:57Z
2010-05-07T08:52:57Z
Staff
2010-05-07T08:52:57Z
Some Thoughts On Forming Partnerships And Corporations
Staff
http://www.DrLaura.com/b/Some-Thoughts-On-Forming-Partnerships-And-Corporations
-
- /9382.html
2010-05-07T08:52:57Z
2010-05-07T08:52:57Z
Staff
2010-05-07T08:52:57Z
Don't Let Your Education Get In The Way Of Your Success
Staff
http://www.DrLaura.com/b/Dont-Let-Your-Education-Get-In-The-Way-Of-Your-Success
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- /9383.html
2010-05-07T08:52:57Z
2010-05-07T08:52:57Z
Staff
2010-05-07T08:52:57Z
The Dangers Of Buying An Early-Stage Franchise
Staff
http://www.DrLaura.com/b/The-Dangers-Of-Buying-An-Early-Stage-Franchise
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- /9384.html
2010-05-07T08:52:57Z
2010-05-07T08:52:57Z
Staff
2010-05-07T08:52:57Z
Motivate Or Eliminate?
Staff
http://www.DrLaura.com/b/Motivate-Or-Eliminate
-
- /9385.html
2010-05-07T08:52:56Z
2010-05-07T08:52:56Z
Staff
2010-05-07T08:52:56Z
Google History and Your Privacy
Staff
http://www.DrLaura.com/b/Google-History-and-Your-Privacy
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- /9386.html
2010-05-07T08:52:56Z
2010-05-07T08:52:56Z
Staff
2010-05-07T08:52:56Z
Breaking Up Can Be Very, Very Hard To Do
Staff
http://www.DrLaura.com/b/Breaking-Up-Can-Be-Very,-Very-Hard-To-Do
-
- /9387.html
2010-05-07T08:52:56Z
2010-05-07T08:52:56Z
Staff
2010-05-07T08:52:56Z
Ten New Year's Resolutions For Business Owners [Part One]
Staff
http://www.DrLaura.com/b/Ten-New-Years-Resolutions-For-Business-Owners-Part-One
-
- /9388.html
2010-05-07T08:52:55Z
2010-05-07T08:52:55Z
Staff
2010-05-07T08:52:55Z
Ten New Year's Resolutions For Business Owners [Part Two]
Staff
http://www.DrLaura.com/b/Ten-New-Years-Resolutions-For-Business-Owners-Part-Two
-
- /9389.html
2010-05-07T08:52:55Z
2010-05-07T08:52:55Z
Staff
2010-05-07T08:52:55Z
Business's Best-Kept Secret: Successful Relationships
Staff
http://www.DrLaura.com/b/Businesss-Best-Kept-Secret:-Successful-Relationships
-
- /9390.html
2010-05-07T08:52:55Z
2010-05-07T08:52:55Z
Staff
2010-05-07T08:52:55Z
Blogging For Business
Staff
http://www.DrLaura.com/b/Blogging-For-Business
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- /9391.html
2010-05-07T08:52:55Z
2010-05-07T08:52:55Z
Staff
2010-05-07T08:52:55Z
Can I Build a Work-at-Home Career If I'm Unemployed
Staff
http://www.DrLaura.com/b/Can-I-Build-a-Work-at-Home-Career-If-Im-Unemployed
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- /9392.html
2010-05-07T08:52:54Z
2010-05-07T08:52:54Z
Staff
2010-05-07T08:52:54Z
The Growing Tax "Cloud" On Small Business E-Commerce
Staff
http://www.DrLaura.com/b/The-Growing-Tax-Cloud-On-Small-Business-E-Commerce
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- /9393.html
2010-05-07T08:52:54Z
2010-05-07T08:52:54Z
Staff
2010-05-07T08:52:54Z
10 Ways to Market Your Business This Holiday Season; Start the New Year On Top
Staff
http://www.DrLaura.com/b/10-Ways-to-Market-Your-Business-This-Holiday-Season;-Start-the-New-Year-On-Top
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- /9394.html
2010-05-07T08:52:53Z
2010-05-07T08:52:53Z
Staff
2010-05-07T08:52:53Z
Tips For Selling A Franchised Business (Part 1 of 2)
Staff
http://www.DrLaura.com/b/Tips-For-Selling-A-Franchised-Business-Part-1-of-2
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- /9395.html
2010-05-07T08:52:53Z
2010-05-07T08:52:53Z
Staff
2010-05-07T08:52:53Z
Using Your 401(K) To Start Or Buy A Business...Revisited
Staff
http://www.DrLaura.com/b/Using-Your-401K-To-Start-Or-Buy-A-Business...Revisited
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- /9396.html
2010-05-07T08:52:51Z
2010-05-07T08:52:51Z
Staff
2010-05-07T08:52:51Z
Becoming A "Banker" For Your Better Clients
Staff
http://www.DrLaura.com/b/Becoming-A-Banker-For-Your-Better-Clients
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- /9397.html
2010-05-07T08:52:51Z
2010-05-07T08:52:51Z
Staff
2010-05-07T08:52:51Z
"Flipping" A Business, and Buying One from a Retiring Founder
Staff
http://www.DrLaura.com/b/Flipping-A-Business,-and-Buying-One-from-a-Retiring-Founder
-
- /9398.html
2010-05-07T08:52:51Z
2010-05-07T08:52:51Z
Staff
2010-05-07T08:52:51Z
Tips For Selling A Franchised Business (Part 2 of 2)
Staff
http://www.DrLaura.com/b/Tips-For-Selling-A-Franchised-Business-Part-2-of-2
-
- /9399.html
2010-05-07T08:52:51Z
2010-05-07T08:52:51Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Tips For Selling AFranchised Business (Part 2 of 2)
By Cliff Ennico
www.creators.com
Now that you have the information you need from your attorney in orderto sell your franchise territory to a neighboring franchisee, here aresome of the questions you will need to ask your accountant:
(1) How should the purchase price beallocated for tax purposes?nbsp;When you buy a business of any kind (franchised or otherwise), you areacquiring a lot of different assets - equipment, inventory, accountsreceivable, motor vehicles (maybe), intellectual property such aspatents or copyrights, and goodwill.nbsp; Under IRS rules, these alldepreciate at different rates, and both you and your buyer have to tellthe IRS (using IRS Form 8594, available at www.irs.gov) how much of thepurchase price was used to purchase each type of asset.nbsp; This iscalled "allocating the purchase price for tax purposes," and is bestdone by having your accountant speak directly to your buyer'saccountant and agree on how best to allocate the purchase price.nbsp;Make sure you do this before you sell the business, as people tend toforget about it afterwards.nbsp; As long as you and your buyer tellthe IRS the same story about how the purchase price will be allocated,life is beautiful.nbsp; But if you and your seller tell the IRSdifferent stories about how the purchase price was allocated, then bothof you will be audited.nbsp; Not a good thing.
(2) Are all of my tax returns up todate?nbsp; Your buyer will want tosee copies of your most recent income tax, sales tax and other taxreturns, but you will have to file "bringdown" tax returns for theperiod beginning on January 1 of this year and ending on the date yousell the business.nbsp; If those returns show that your business hasdeteriorated when compared to the same period last year, there#146;s a goodchance the buyer will want to reduce the purchase price based on yourmore "up to date#148; information.
(3) Will sales or other taxes be dueon the machinery, equipment andother physical assets I will be selling to the buyer?nbsp; Manystateshave a "bulk sales" law that requires the buyer to pay sales tax on thetangible assets (always the equipment and machinery, maybe theinventory, but never the goodwill) you are selling to him.nbsp; Thisis another reason why the "allocation of purchase price" (describedabove) is so important.nbsp; The more of the purchase price isallocated to tangible assets such as equipment, the more sales tax yourbuyer will have to pay when you sell the business.nbsp; Some statesalso have "personal property taxes" and "floor taxes" on specificassets that will have to be paid when you close the sale.nbsp; Eventhough it is the buyer's responsibility to pay these taxes, you andyour accountant will be asked to do whatever you can to minimize thesetax obligations as a condition to getting the deal done.
(4) Will the state government requirea portion of the purchase price tobe "escrowed" for any unpaid sales taxes?nbsp; When you selltheassets of a business, the buyer is not subject to any debts,liabilities or obligations the seller has incurred except for those thebuyer assumes in writing.nbsp; The one exception to that, in manystates, is unpaid sales taxes.nbsp; If you have not filed all yoursales tax returns when they were due, or if you owe sales taxes, thestate can sue your buyer to collect these even though you sold only theassets of your business, not the business itself.nbsp; Because theexact amount of your sales tax liability will not be known 100% beforethe closing, it is customary for your attorney to hold a portion of thepurchase price in escrow until you have filed all of your sales taxreturns through the sale date, paid all your sales taxes, and receiveda "clearance certificate" from your state tax authority saying they aresatisfied and won#146;t go after your buyer.
nbsp;nbsp;nbsp;
You can ask your state tax authority to determine the amount to be heldin escrow or, if that is not possible, you can calculate the escrowamount as follows: take the arithmetic average of the sales taxesyou actually paid each month for the last six months, multiply thataverage by three, and escrow that amount when you sell thebusiness.nbsp; The theory is that if you made a mistake in calculatingyour sales taxes, it is statistically unlikely the state will assessyou for more than 300% of your average monthly tax liability.nbsp;
Of course, if the state conducts a sales tax audit and finds out you#146;vereally fouled up and owe a lot more than that in sales taxes, theescrow amount may not be enough to pay the state everything you owe,and you will have to go out of pocket and "pay up" in order to preventthe state suing your buyer for the shortfall.
Cliff Ennico (
cennico@legalcareer.com
)is a syndicated columnist, author and former host of the PBS televisionseries 'Money Hunt'. This column is no substitute for legal, tax orfinancial advice, which can be furnished only by a qualifiedprofessional licensed in your state. To find out more about CliffEnnico and other Creators Syndicate writers and cartoonists, visit ourWeb page at
www.creators.com
or visit
succeedinginyourbusiness.com
.COPYRIGHT2009 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE,INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:52:51Z
Give Me A Perfect Life...Or I'll Kill You
Staff
http://www.DrLaura.com/b/Give-Me-A-Perfect-Life...Or-Ill-Kill-You
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2010-05-07T08:52:50Z
2010-05-07T08:52:50Z
Staff
2010-05-07T08:52:50Z
A Crisis of Competence
Staff
http://www.DrLaura.com/b/A-Crisis-of-Competence
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2010-05-07T08:52:48Z
2010-05-07T08:52:48Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>A Crisis of Competence
By Cliff Ennico
www.creators.com
Does it seem to you sometimes that nobody knows how to do their jobs anymore?
My Mom is 81 years old, a widow who lives about a two hour drive from where I live. My Mom is not usually a complainer, but when I called her this past Sunday she was nearly in tears due to three separate incidents that occurred within a three day period last week.
Incident # 1: She received an IRS Form W-9 (request for federal tax ID number) from her bank showing an incorrect Social Security Number for her checking account. She was afraid to return the form by mail, so visited her local branch and spoke to an officer she trusted. The officer, after several unsuccessful efforts to contact the bank's tax department (she was put on hold several times listening to music, just like us customers), finally reached a human being and learned that the Social Security Number belonged to my father, who died more than a decade ago. Except that it wasn't my Dad's Social Security Number - the number was one digit off. Apparently this bank went through several acquisitions and the digit was changed somewhere along the way. Good thing my Mom didn't have any problems that would have required that number to be correct.
Incident # 2: Mom received a letter from her Medicare Part D prescription drug insurer notifying her she would be dropped within 60 days unless she provided certain tax information. My Mom knew of this requirement, and had mailed the required information three weeks previously by certified mail. She had a return receipt, so the information was lost somewhere at the insurer's office. Unfortunately, Mom had not kept a duplicate copy of the form. Since she doesn't have a computer, I had to download the form from the insurer's website and overnight it to her. She then had to take a taxicab across town to her accountant's office to obtain a printout of her electronically-filed income tax return, which was required to be attached to the form.
Incident # 3: Mom went to the supermarket to buy groceries. The checkout person, who was "multitasking", neglected to scan Mom's "frequent shopper" card, so discounts on some items were not recorded on the register tape. Mom complained to the clerk's supervisor, who came over to the register and began manually changing the prices on the register tape to record the discounts (apparently she didn't know how to void the transaction so the clerk could record everything again). Midway through doing this, the supervisor announced that her shift had ended. Both she and the clerk disappeared, and Mom had to wait 20 minutes for another supervisor to come over and finish the job. After 90 minutes at the checkout counter, Mom finally did get her discount, but it wasn't over yet, folks.
Because Mom can't lift heavy objects, someone else has to pack her groceries and then hand them off to the supermarket's delivery staff for delivery to Mom's home. Four hours later, the supermarket delivery person arrived at Mom's home. Several items were missing, and included in Mom's delivery was a three foot tall plant that clearly belonged to someone else. Mom took a taxicab to the supermarket the next day (she can't drive anymore), lugging the heavy, odiferous plant, and insisted that the missing items be replaced. After some discussion, the supervisor (a third one) told her she couldn't do that but would refund Mom's money for the missing items. Mom took the refund, shopped for the missing items, and checked those items out at the register. Again, the clerk forgot to scan Mom's "frequent shopper" card . . .
Now, no one has said it's easy being an old lady. Each incident by itself was trivial. But taken together they paint a nasty picture of a society that simply doesn't work well anymore. Despite - or maybe because of -- our overreliance on computer technology and an overeducated work force with little or no common sense (two of the three supermarket supervisors Mom dealt with were college graduates!), America is facing a crisis of competence at all levels of business.
Here's my advice to the brainless morons Mom had to deal with this past week:
stop rushing - slow down and take the time to think about what you are doing so you get it right the first time;
lose your "attitude" -- care about your job enough to want to do it well, whatever that job is, even if that means staying five or ten minutes past the end of your shift without pay;
remove computers from the customer service process - train human beings who can respond quickly, efficiently and empathetically to people's problems, and communicate with people in clear English (or Spanish);
care about your customers, even if it hurts -- treat them with respect and patience as individuals, and try to place their needs above your own. After all, you will be old yourself someday . . .
Cliff Ennico (
cennico@legalcareer.com
)is a syndicated columnist, author and former host of the PBS televisionseries 'Money Hunt'. This column is no substitute for legal, tax orfinancial advice, which can be furnished only by a qualifiedprofessional licensed in your state. To find out more about CliffEnnico and other Creators Syndicate writers and cartoonists, visit ourWeb page at
www.creators.com
or visit
succeedinginyourbusiness.com
.COPYRIGHT 2009 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE,INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:52:48Z
Should You Be Using e-Mail In Your Business?
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http://www.DrLaura.com/b/Should-You-Be-Using-e-Mail-In-Your-Business
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2010-05-07T08:52:47Z
2010-05-07T08:52:47Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Should You Be Usinge-Mail In Your Business?
By Cliff Ennico
www.creators.com
nbsp;nbsp;nbsp; It may seem odd to be asking this question in2009.nbsp; After all, the Internet has been with us for about 15years, and e-mail was one of the first "killer apps" to emerge in theInternet era.nbsp; Everybody uses e-mail, for just about everything,and I'd be willing to bet there are literally trillions of e-mailsfloating around in cyberspace leaving an amazing archaeological recordof how we all lived our lives at the dawn of the Third Millennium A.D.
nbsp;nbsp;nbsp; But something that happened to me recently has mademe wonder whether we should be relying so much on e-mail.
nbsp;nbsp;nbsp; Earlier this year, I woke up one morning to find Icouldn't receive e-mails.nbsp; I contacted my Internet ServiceProvider (ISP) and, after several hours, was informed that one of mywebsites #150; the one my primary e-mail address is tied to - had beeninvaded by a "worm" program.nbsp; Apparently someone had deduced mypassword, and was using my address to send "please wire money to ourbank account in Lower Slobbovia" e-mails to everyone in my e-mailaddress book.
nbsp;nbsp;nbsp; My ISP changed my password, and I started gettinge-mails again.nbsp; I thought that was the end of it, until several ofmy law clients complained that their e-mail messages to me were notgetting through.nbsp; They said they were receiving "bounceback"messages from their ISPs saying, in effect, that my e-mail addressdidn't exist.nbsp; Most of the frustrated clients were using one ofthe large cable companies as their ISP.
nbsp;nbsp;nbsp; I called my ISP, who in turn called tech support atthe large cable company.nbsp; It seems that his e-mail server had been"blacklisted" by the cable company because of all the "scam-spam"messages that had come from my e-mail address when the "worm" programhad taken it over.nbsp; The two ISPs exchanged a few numbers, theserver was removed from the cable company's "blacklist", and I wasassured the problem was solved.
nbsp;nbsp;nbsp; Except that I kept receiving calls from frustratedclients, using other ISPs, saying that my e-mail address still wasn'tworking.
nbsp;nbsp;nbsp; A couple of weeks ago I had to travel across countryon business, which meant accessing my e-mails from the road using myISP's "webmail" program.nbsp; When I logged into my webmail account, Iwas shocked to discover that the name on my account was that of the"scam-spam" fraudster.nbsp; Apparently my ISP neglected to change theidentity on the account when they changed my password, so that everytime I sent a message, replied to a message or forwarded a message,unbeknownst to me the fraudster's "scam-spam" message was being tackedon at the end of my legitimate message.
nbsp;nbsp;nbsp; As a result, a number of large ISPs were continuingto "blacklist" my ISP's e-mail server, which explained why some clientscould not communicate with me via e-mail.
nbsp;nbsp;nbsp; Needless to say, I had some choice words for myISP.nbsp; While it appears (at least for now) that there are notag-along "scam-spam" messages on my outgoing e-mail messages, I amstill occasionally getting calls from people saying their messages tomy primary e-mail address are bouncing back to them.nbsp; And I amsure a lot of people who are trying to reach me for the first time viae-mail have not been able to get through.
nbsp;nbsp;nbsp; I am being told the only way I can be 100% certainthe problem has been solved would be to change my primary e-mailaddress to a different website - something I am extremely reluctant todo, as I have used my address for almost 15 years now and would have togive notice to thousands of people.nbsp; To say nothing of thehundreds of articles I have written that are posted somewhere on theWeb and which prominently feature an e-mail address that would nolonger be valid.nbsp;
nbsp;nbsp;nbsp; My purpose in sharing this with you is not merely tovent my frustration.nbsp; It is to point out that, even in the year2009, there are serious and unresolved issues with e-mailcommunications.nbsp; In light of my recent experience, I am no longersure that communication via e-mail is 100% reliable, dependable, orsecure.nbsp; My faith in e-mail has been shaken to the core, and I amnot sure you should trust your sensitive business communications toit.nbsp;nbsp;
nbsp;nbsp;nbsp; So if you are sending me an e-mail message inresponse to this column, please use the e-mail address below - the lasttime I checked, it was still working.nbsp; If you are using anothere-mail address for me, and I have not responded to an e-mail messageyou have sent me, you now know the reason why.nbsp; If I have made younervous about communicating via e-mail, please call me, or send me aletter.
nbsp;nbsp;nbsp; And PLEASE, whatever you do, do not send any moneyto a bank account in Lower Slobbovia because you think I asked you to.
Cliff Ennico (
cennico@legalcareer.com
)is a syndicated columnist, author and former host of the PBS televisionseries 'Money Hunt'. This column is no substitute for legal, tax orfinancial advice, which can be furnished only by a qualifiedprofessional licensed in your state. To find out more about CliffEnnico and other Creators Syndicate writers and cartoonists, visit ourWeb page at
www.creators.com
or visit
succeedinginyourbusiness.com
.COPYRIGHT 2009 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE,INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:52:47Z
Six New Year's Resolutions For Business Owners
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http://www.DrLaura.com/b/Six-New-Years-Resolutions-For-Business-Owners
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2010-05-07T08:52:46Z
2010-05-07T08:52:46Z
Staff
2010-05-07T08:52:46Z
Software Licensing For Beginners
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2010-05-07T08:52:46Z
2010-05-07T08:52:46Z
Staff
2010-05-07T08:52:46Z
The "Magnificent Seven" Marketing Tools for Service Providers
Staff
http://www.DrLaura.com/b/The-Magnificent-Seven-Marketing-Tools-for-Service-Providers
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2010-05-07T08:52:46Z
2010-05-07T08:52:46Z
Staff
2010-05-07T08:52:46Z
Twelve Things You Need When Starting A Consulting Business - Part I
Staff
http://www.DrLaura.com/b/Twelve-Things-You-Need-When-Starting-A-Consulting-Business---Part-I
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2010-05-07T08:52:45Z
2010-05-07T08:52:45Z
Staff
2010-05-07T08:52:45Z
Twelve Things You Need When Starting A Consulting Business - Part 2 of 2
Staff
http://www.DrLaura.com/b/Twelve-Things-You-Need-When-Starting-A-Consulting-Business---Part-2-of-2
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2010-05-07T08:52:45Z
2010-05-07T08:52:45Z
Staff
2010-05-07T08:52:45Z
Paying Sales Taxes When You Buy A Business
Staff
http://www.DrLaura.com/b/Paying-Sales-Taxes-When-You-Buy-A-Business
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2010-05-07T08:52:43Z
2010-05-07T08:52:43Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Paying Sales Taxes When You Buy A Business
By Cliff Ennico
www.creators.com
"I recently bought a small business. During a routine sales tax audit, the auditor mentioned that when I bought this business I should have paid sales tax on the entire amount of the purchase price. This came as a huge shock to me, as the attorney who represented me said nothing about it. I had to pay several thousand dollars in taxes, plus interest because I paid it late. Is this correct, and is there anything people can do to avoid such a rude surprise?"
The problem here comes about because nowadays when people buy businesses, they don't purchase the stock of the seller's business - they buy the assets instead. Many states require you to pay sales tax upon a "bulk purchase" of assets, and the tax bill can come as a huge surprise if you don't plan for it.
Whenever you buy the assets of a business, you are required to "allocate" the purchase price to different assets - so much for equipment, so much for inventory, so much for goodwill, and so forth. This is done primarily for income tax purposes - because different assets classes are treated differently for tax purposes (some, such as equipment, are fully deductible, whereas goodwill must be written off over 15 years, for example), the IRS and your state tax authority want to know how much of the purchase price was used to buy specific assets. If you bought this business during 2009, you will have to file IRS Form 8594 (available as a free download at
www.irs.gov
) on your tax return next year spelling out how you did this.
But the allocation of your purchase price for income tax purposes also determines how much sales tax you pay to your state and local tax authorities. Generally, there is no sales tax on "goodwill" or other intangibles. When you buy the assets of a business, only that portion of the purchase price that is allocated to "tangible assets" such as equipment is subject to sales tax. So, when allocating the purchase price in your contract of sale, if you want to minimize sales taxes you should allocate as little as possible to equipment and other tangible assets.
But that decision will come at a price: the less you allocate to equipment, the less you will be able to deduct on this year's tax return under Section 179 of the Internal Revenue Code, which currently allows you to write off up to $250,000 worth of equipment in the year you buy it. When allocating your purchase price, you may have to pay some sales tax in order to get the benefit of a hefty income tax deduction - your accountant should work through the numbers and figure out what will give you the biggest "bang" for your tax dollar.
Which leads me to the big problem here: it sounds like you didn't have an accountant working with you. Many attorneys who represent small businesses are not familiar with the tax consequences of the transactions they put together for their clients - they rely on your accountant to handle this, and the better ones will not agree to work with you unless you have an accountant they can work with to make sure you experience no tax "surprises" after the closing takes place.
Unfortunately, quite a few attorneys won't even tell you to get an accountant - if that's what happened here, then I don't think your attorney acted properly. If an attorney is not willing to get involved in tax issues, then he or she has an obligation to insist you work with a good small business accountant. If your attorney doesn't want to work with an accountant, or if you refuse to work with one because of the cost, then he or she has an obligation to help you deal with the tax issues of your transaction or (if he or she is not comfortable doing so) withdraw from representing you. Period.
Here's a tip: when a seller of assets wants to allocate a large amount of your purchase price to tangible assets (which will result in a big sales tax bill for you as the purchaser), ask him to break the figure down into two categories: "equipment" and "leasehold improvements" (or "capital improvements" if you are buying the building where the business is located). While "equipment" will always be considered "tangible assets" for sales tax purposes, in many states "leasehold improvements" are considered intangible assets that are not subject to tax. Or they may be considered the property of your landlord, not you individually, and will be exempt from tax for that reason. You will still end up paying some sales tax, but the amount will be greatly reduced.
When buying any sort of business, you need both a good lawyer and a good accountant - using only one type of professional ensures that some things will "fall through the cracks," as they did here.
Cliff Ennico (
cennico@legalcareer.com
)is a syndicated columnist, author and former host of the PBS televisionseries 'Money Hunt'. This column is no substitute for legal, tax orfinancial advice, which can be furnished only by a qualifiedprofessional licensed in your state. To find out more about CliffEnnico and other Creators Syndicate writers and cartoonists, visit ourWeb page at
www.creators.com
or visit
succeedinginyourbusiness.com
.COPYRIGHT 2009 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE,INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:52:43Z
Bulletproof Your Identity
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http://www.DrLaura.com/b/Bulletproof-Your-Identity
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2010-05-07T08:52:40Z
2010-05-07T08:52:40Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Bulletproof Your Identity
By John Sileo
www.Sileo.com
Think about it. Slowly, over time, we have given away our privacy. Many times we don't even realize we are giving it away. We commonly trade our personal information for access to website content (free songs, email), the chance to win a contest (iPods, vacations) or a one-time 10% discount at a clothing retailer. I call this slow and unnecessary leakage of our personal information identity creep. Our information is requested in a subtle way, and because the immediate benefits seem substantial and often feel harmless, we overlook the downside-that we are gradually broadcasting our identity to those who shouldn't have it.
One source at a time, we must reverse our bad habits and guard information rather than give it out. Understandably, we cannot entirely give up sharing our information. But we must determine what to share and with whom. We must begin to accumulate our privacy over time. This incremental approach keeps prevention from being an overwhelming task and reminds you to consider the risk anytime identity is involved.
Here are steps to start the process:
1. Opt Out of Financial Junk Mail
Problem: Your private data is bought and sold by junk-mailers without your knowledge. Solution: Opt out by calling 1-888-567-8688 or visiting
www.OptOutPreScreen.com
.
There are complete industries built around collecting, massaging and selling your data - your name, phone number, address, spending patterns, net worth, the age of your children, the magazines you buy, etc. Companies buy bits of your privacy so that they can knowledgeably market products to you that you are likely to purchase.
To minimize the amount of your personal information bought and sold on the data market, begin "opting out." Opting out is the process of notifying organizations that collect your personal information to stop sharing it with other organizations. "Pre-Approved" credit card offers (i.e., financial junk mail) are a major source of identity theft. Those mailers give thieves an easy way to set up credit card accounts in your name without your consent. They spend money on the card and default on the balance, leaving you with the mess of proving that you didn't make the purchases. The solution is to opt out of receiving pre-approved credit, home loan and insurance offers.
Pre-approved credit offers (also called pre-screened or pre-qualified credit offers) are possible because credit reporting bureaus (Experian, Equifax and Trans Union - companies that collect and sell financial data on nearly every American) make a great deal of money selling your identity (i.e., name, address, phone number, age, credit score) to credit card, loan and insurance companies. But it is your right to stop the sale of your information. To opt out of pre-approved credit offers with the three main credit reporting bureaus, call 1-888-567-8688 or visit
www.OptOutPreScreen.com
. There is no cost to you for opting out.
Once you've completed this step, begin opting out of ALL information sharing on every account you have (bank, brokerage, mortgage, utilities, phone, etc.) as well as with the Direct Marketing Association.
2. Shred Your Paper Trash
Problem: We throw away private information every day. This is where dumpster divers begin. Solution: Buy a heavy-duty or a lighter-duty confetti shredder and shred everything that contains private information.
Assume that any document you throw out will end up in the hands of an identity thief. Get in the habit of either chopping or locking documents and disks that contain identity (name, phone number, address, social security number, account numbers, passwords, PIN numbers, phone numbers, client information, childrens' information, etc.).
When buying a paper shredder, I recommend the following features:
Cross-cut confetti shredding
10+ pages of simultaneous feeding capacity
Allows shredding of stapled documents, credit cards and CDs
Convenience is key! Make sure you place a confetti shredder next to ALL of the places that you handle identity (where you open your mail, your home office, your desk at work) and shred everything possible. Don't skimp here - if you don't make it convenient for yourself and your employees, it won't get done. If a document has identity of any sort on it, shred it, even if it isn't your information. Don't forget to destroy digital files as well, like those that live on a hard disk when you donate your computer. If you can't shred it, lock it up in a fire-safe.
3. Freeze Your Credit File
Problem: If a thief gains access to your credit file, they can spend everything you're worth. Solution: Freeze your credit with Experian, Equifax, and TransUnion.
Every time you establish new credit (e.g., open up a new credit card, store account or bank account, finance a car or home loan, etc.), an entry is created in your credit file which is maintained by companies like Experian, Equifax and TransUnion. The trouble is, with your name, address and social security number, an identity thief can pretend to be you and can establish credit (i.e., spend your net worth) in your name.
A credit freeze is simply an agreement you make with the three main credit reporting bureaus (Experian, Equifax and TransUnion) that they won't allow new accounts (credit card, banking, brokerage, loans, rental agreements, etc.) to be attached to your name/social security number unless you contact the credit bureau, give them a password and allow them to unfreeze or thaw your account for a short period of time. Yes, freezing your credit takes a bit of time (maybe an hour of work), can be a little inconvenient when you want to set up a new account) and it can cost a few dollars (generally about $10 to unfreeze, a small price compared to the recovery costs of identity theft). And it is worth it! It's like putting locks on your doors.
Don't let anyone talk you out of freezing your credit. It is the number one thing you can do to prevent credit fraud.
4. Use Surveillance to Monitor Your Online Identity
Problem: Your private information is floating around on the internet and exposing you to risk. Solution: Monitor your online identity conveniently with sophisticated identity surveillance.
When my audiences learn that only about 25% of identity theft can be caught by monitoring their credit report, they often ask me to evaluate the more sophisticated identity theft monitoring and protection services in the market place. Not all identity monitoring services are created equal. I recommend an identity surveillance service that monitors the following aspects of your identity:
24/7 monitoring of your credit file (most services provide only this - nothing more)
Non-credit loans (pay-day loans, etc)
Government records
Public records disclosure (court cases, real estate transactions, etc.)
Nation-wide criminal databases
Cyber-trafficking of your private information over the internet
The better services will also offer recovery services and identity theft insurance
Here's how it works. Rather than waste hours monitoring all of the potential sources of identity theft myself, the product does it for me, automatically. Every month, a report shows up in my email inbox letting me know if there are any areas that I should be concerned about. That way, I only have to think about it when necessary. Again, convenience is crucial - if we make it easy to be safe, we will be safe! You should expect to spend approximately $120 per year for a good service (far less than you probably spend to insure your car and home, which are worth far less than your identity).
5. Lock Up Identity Documents
Problem: Identity documents that are left unlocked in our homes and offices open up profitable opportunities for identity thieves. Solution: Purchase a fire-resistant document safe to securely store all of your identity documents.
A majority of our most valuable identity documents (passports, birth and death certificates, wills, trusts, deeds, brokerage information, passwords, health records, customer data, employee records, etc.) are exposed to identity theft (and natural disasters, such as fire and floods) as they sit in unlocked filing cabinets, bankers boxes, office drawers or out in the open, on our desks. To complicate matters, the problem of data theft goes beyond paper documents to digital media. More than ever we need to be concerned with the physical protection of hard drives, cell phones, thumb drives, CDs and DVDs with sensitive personal or business data on them.
To store them securely, purchase a fire-resistant safe. Think of it this way. Your identity is probably worth something close to $300,000 (even if your credit is poor), not to mention the value of any business data for which you are responsible (customer records, employee information, intellectual capital). Spending a few hundred dollars to lock up the keys to your identity is simple.
Look for a fire safe that meets these requirements:
Able to withstand 1500deg; F for 30 minutes
Lockable by key or combination
Able to be secured to the foundation of your home (to prevent safe theft)
Preferably waterproof (where there's fire, there's water)
One important note: increasingly, thieves are breaking into homes and businesses in order to steal identity documents. By placing them all in a central location (such as a fire safe), you are making it easier for them to steal everything at once. I suggest that you have your fire safe bolted into the foundation of your home or business. This small expense could save you hundreds of thousands of dollars. It's no more expensive than putting dead-bolt locks on your doors.
6. Protect Your PC
Problem: The information stored on your computer can be compromised if left unprotected. Solution: Follow the 7 Steps to a System Lock-down listed below.
In order to protect all of the identity documents stored on our home and work computers, it is important to close all of the potential data leaks. The following suggestions will get you started, but please hire a computer security professionally to help you protect this very valuable asset in the fight against identity theft.
Create strong, alphanumeric passwords.
Employ a highly-rated security software suite on every computer you own. It should include: anti-virus and anti-spyware scanners; password protection, phishing and pharming filters and a firewall.
Configure your Windows systems for automatic security updates.
Utilize encryption software (for professional-level protection).
Physically lock-down your computers (especially if you use a laptop or hand-held).
Desktop computers and workstations should be locked in your office, both at work and at home. More private data disappears because of stolen laptops than any other source.
Secure your wireless network. Make sure that the connection is not open to anyone with a wireless device and that you use WPA encryption, NOT WEP.
Secure your Mobile Data Devices (iPhones, BlackBerrys, Treos, Palms, Thumb Drives, Laptop Computers) using all of the tools above. Just because they are small doesn't mean that the data on them isn't worth a mint.
About the author: After losing his business to data breach and his reputation to identity theft, John Sileo became America's leading identity theft expert and professional speaker. His recent clients include the Department of Defense, the FDIC, Blue Cross and Pfizer. Learn more about Identity Theft Expert John Sileo at
www.Sileo.com
and receive a free white-paper:
Privacy Means Profit: Safe Data = Profitable Data
. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:52:40Z
Corporate "Survival Skills" vs. Entrepreneurial "Survival Skills"
Staff
http://www.DrLaura.com/b/Corporate-Survival-Skills-vs.-Entrepreneurial-Survival-Skills
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- /9410.html
2010-05-07T08:52:38Z
2010-05-07T08:52:38Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Corporate "Survival Skills" vs. Entrepreneurial "Survival Skills"
By Cliff Ennico
www.creators.com
"I was laid off from a corporate job a while back. I'm in outplacement, and the people here are telling me there are no jobs anywhere in corporate America for anyone with my experience. I've thought about doing something entrepreneurial - doing some consulting, maybe, or making some money out of some of my hobbies - but I'm really not sure I've got what it takes to make it. I'm seeing a lot of ex-corporate people starting businesses of their own, and most of them aren't making it, which scares the Dickens out of me. What are some of the secrets that separate the winners from the losers, and will help me beat the odds in a tough, competitive climate?"
No doubt about it - if you want to succeed as an entrepreneur, you have to grow a new skin. Or, more precisely, a new way of looking at the world. The attitudes that helped you survive in a large corporation will often get you killed when you start a business of your own. Here are some key ways successful entrepreneurs look at the world differently than successful corporate executives.
Successful Entrepreneurs Focus on Results, Not Process. Corporate executives often spend too much time worrying about process, protocol, and getting team consensus when undertaking projects. Entrepreneurs are all about performance, production, and getting results. Executives excel at planning; entrepreneurs excel at execution.
Successful Entrepreneurs Are Not Perfectionists. Corporate executives often cross every "T", dot every "I", and cover their rears ten ways 'til Tuesday before making a decision, risking "paralysis by analysis". Entrepreneurs realize that market opportunities don't wait - by the time you've gotten all the information you need to make a decision, the opportunity has passed. Successful entrepreneurs leap through the window as soon as they realize there's a good chance of surviving the fall, even though the landing may be a bit sloppy and some messes may have to be cleaned up in version 2.0.
Successful Entrepreneurs Know How to Sell. Many corporate executives are good at finance, human resources, information technology, "strategic marketing" and other disciplines but have never had to sell a thing in their lives. Successful entrepreneurs are, almost always, terrific salespeople, and realize that marketing and selling yourself, your products and services is Job Number One. If you're not spending at least one-third of your business time networking for leads, making sales calls, and getting your message across to current and potential customers, sooner or later your sales pipeline will dry up and your business will fail. I guarantee it.
Successful Entrepreneurs Don't Care About "Whys and Wherefores". Corporate executives, being highly educated folks and "A students" by temperament, often base their decisions on ideas originating in their heads. They rationalize and defend these decisions using theories, models, and "deductive reasoning". Successful entrepreneurs, while extremely intelligent, use their five senses instead, soaking up information from the real world around them and using "inductive reasoning" to base their decisions on what they see going on there. They believe that it isn't always necessary to know why something works, as long as it does.
Successful Entrepreneurs Are Flexible. Corporate executives often become overly dependent on a single model of doing business and adapt to changing circumstances slowly and carefully, if at all. Entrepreneurs know that if something doesn't work, you do something else, and quickly. If you're offering a service at $10,000 and nobody's biting, try offering a "no frills" $2,000 service and see what happens. If customers like it, they may be willing to upgrade to a higher-priced service once they see what you can do.
Successful Entrepreneurs Are (Often) Neurotic. Corporate executives frequently get too complacent about their jobs, their markets, their products or services, and their future success. Successful entrepreneurs - increasingly, outcasts from corporate America - have tasted failure, and know they can be there again in a heartbeat. As a result, fear becomes their best friend - it keeps them focused, sharpens their five senses, and motivates them to keep looking for new problems, threats and opportunities after all others have accepted the status quo.
Successful Entrepreneurs Are Not Always Nice People. Corporate executives often worry too much about what people think of them, and believe strongly in the motto "to get along one must go along." Successful entrepreneurs, under incredible pressure to get results, often have to take actions that are direct, in-your-face, and (sometimes) unpleasant to the people around them -- ask any entrepreneur who has to fire a longtime associate and close friend who isn't cutting the mustard anymore.
Successful Entrepreneurs Don't Become "Prisoners of Their Resumes". Corporate executives often become trapped by their resumes - if something isn't listed on it, then it's something they cannot or shouldn't undertake (or so they think). Successful entrepreneurs do not let a lack of knowledge, experience or talent get in the way of their success - when a good opportunity strikes, they say yes, learn on the job and grab the business before their more experienced competitors even find out about it.
Cliff Ennico (
cennico@legalcareer.com
)is a syndicated columnist, author and former host of the PBS televisionseries 'Money Hunt'. This column is no substitute for legal, tax orfinancial advice, which can be furnished only by a qualifiedprofessional licensed in your state. To find out more about CliffEnnico and other Creators Syndicate writers and cartoonists, visit ourWeb page at
www.creators.com
or visit
succeedinginyourbusiness.com
.COPYRIGHT 2009 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE,INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:52:38Z
Should You Post Your Prices On Your Website?
Staff
http://www.DrLaura.com/b/Should-You-Post-Your-Prices-On-Your-Website
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2010-05-07T08:52:36Z
2010-05-07T08:52:36Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Should You Post YourPrices On Your Website?
By Cliff Ennico
www.creators.com
"I just started a small service business out of my home.nbsp; Becausemy overhead is absolutely rock-bottom, I can charge significantly lessfor my services than my competitors.nbsp; I just set up a website formy business, and I'm thinking of putting a 'price list' on the homepage showing the prices I charge for different services.nbsp; I wantpeople to see just how affordable I am.nbsp; But a couple of friendshave told me this would make me 'look cheap' and is an unprofessionalthing to do.nbsp; Are they right?"
This is one of the toughest marketing decisions for any servicebusiness.nbsp; The answer will depend on (1) the services you areproviding, (2) the customers you serve, and (3) how much you want to belocked in to a specific price structure.
Your Services.nbsp; Generally, if the service you provide is a"commodity", such as landscaping, where "flat fees" are normallycharged for specific services, it's a very good idea to post yourprices on your website.nbsp; If your service is more "professional" innature, such as marketing consulting, with lots of variables that willaffect the prices you quote for specific jobs, then it's probably not agood idea to post specific prices, although you might want to considerposting your hourly rate, a list of factors that will affect the pricequoted for a specific job, and perhaps some "ballpark estimates" ofprices you have quoted for the most commonly requested services.
Even within a particular profession, your decision may vary dependingon the "culture" associated with the specific services youprovide.nbsp; For example, a lawyer specializing in wills, trusts and"estate planning" work for wealthy individuals will probably not posther prices on the web for fear of being perceived as "low class".nbsp;
Your Customers.nbsp; If you are a consultant for large, publiclytraded corporations, you absolutely should NOT post your prices on yourwebsite.nbsp; Corporate clients will indeed think you areunprofessional if you post your prices on the Web, and will questionwhether you truly understand the corporate market.
If your clients are entrepreneurs, small business owners, and people(like yourself) who work out of their homes, then you absolutely shouldpost your prices on your website.nbsp; These folks are extremely priceconscious, they are generally squeamish about negotiating prices, andthey probably think they can't afford services from anyone in yourprofession.nbsp; Offering them a "menu" is a great way to send themessage not only that they can afford you, but that you really careabout them because you will be sensitive to their budget.
"Locking Yourself In".nbsp;Once you have posted prices on your website, you are "locked in" tothose prices, and may have a tough time changing them when you realizeyou set them incorrectly.nbsp; If you are not 100% sure what yourprices should be, or if there are factors that might cause you to quotedifferent prices for identical jobs, don't post specific prices on yourwebsite.
I currently have two websites for different aspects of my career.nbsp;Here are the decisions I made in each case about posting my fees:
The first site is for my law practice.nbsp; Since I deal only withsmall businesses and their owners, I posted an extensive list of pricesfor certain matters I commonly handle for my clients, such as reviewingcontracts and leases, forming corporations and limited liabilitycompanies, and other transactions for which I can charge a "flatfee".nbsp; Just the fact that I charge flat fees for certain legalwork is enough to set me apart from my local competition.
The second site is for my professional speaking activities.nbsp; WhileI do have "standard charges" for keynote speeches, panel discussions,and all-day seminars, I prefer not to post these on my website, becausedifferent circumstances can lead to different price quotes, and I needto ask lots of questions before I can quote an exact price.nbsp; Forexample, someone who wants me to give a one-hour keynote speech inPhiladelphia, which is only a two hour Amtrak train ride from my home,is going to be quoted a lower speaker's fee than someone who wants meto give a one-hour keynote speech in California.nbsp; While the twospeeches may be identical, the latter will require a cross countryplane trip and one if not two overnight stays in a hotel, which willtake me away from my law practice and otherwise disrupt my life to amuch greater extent than the Philadelphia gig.
One more thing:nbsp; when you change your prices, be sure you updateyour website before you start quoting difference prices in your e-mailand telephone communications with clients.nbsp; Leaving outdatedprices online is one sure way to get an angry response from a clientwho's been paying higher prices and then stumbles upon your websitewhile Googling something else . . .
Cliff Ennico (
cennico@legalcareer.com
)is a syndicated columnist, author and former host of the PBS televisionseries 'Money Hunt'. This column is no substitute for legal, tax orfinancial advice, which can be furnished only by a qualifiedprofessional licensed in your state. To find out more about CliffEnnico and other Creators Syndicate writers and cartoonists, visit ourWeb page at
www.creators.com
.COPYRIGHT 2009 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE,INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:52:36Z
6 Steps to Avoid a Laptop Identity Crisis
Staff
http://www.DrLaura.com/b/6-Steps-to-Avoid-a-Laptop-Identity-Crisis
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2010-05-07T08:52:36Z
2010-05-07T08:52:36Z
Staff
2010-05-07T08:52:36Z
"My Customers Love Me So Much, They're Trying To Kill Me"
Staff
http://www.DrLaura.com/b/My-Customers-Love-Me-So-Much,-Theyre-Trying-To-Kill-Me
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- /9413.html
2010-05-07T08:52:34Z
2010-05-07T08:52:34Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>"My Customers Love MeSo Much, They're
Trying To Kill Me"
By Cliff Ennico
www.creators.com
"I run a very successful marketing consulting business - frankly toosuccessful.nbsp; Because I work out of my home and have no significantoverhead, I charge less than half of my nearest competitor in thisarea.nbsp; Whenever I quote a job, the customer never complains - theyjust roll over and sign my standard contract.nbsp; Frankly, despite adifficult economy, I've got more work than I can deal with.nbsp; I amextremely popular, and my customers always refer me to other businessesin the area because I'm giving them the best deal in this area forthese services.
My problem is that I'm working my tail off - 80 to 90 hours a week mostweeks.nbsp; And while I'm paying my bills on time, I'm not able to putany money away for retirement and that really worries me.nbsp; I can'tafford to hire anyone to help me.nbsp; Even if I had time to take avacation - and believe me, I need one right now - I wouldn't be able toafford it.
I know I probably should raise my prices, but I'm afraid I'm going tolose too much business.nbsp; Is there any way out of this dilemma?"
You know you are not charging enough for your services when thecustomers don't bother to argue over your service proposals, contractsor invoices.nbsp; Afraid they will lose a deal that's "too good to betrue" by looking a "gift horse in the mouth," they just agree to yourterms without comment.nbsp; Be assured that the minute you leave theiroffices they are doing "high fives", breaking out the vintage claret,and snarking about your naivete and lack of experience in business.
While as a home based entrepreneur you want to keep your overhead andother costs at rock bottom, enabling you to charge lower fees than yourbrick and mortar competitors, you want to be sure you are chargingenough so:
you can make a decentliving, enough to compensate you for the fact that you are working 24/7unlike many of your competitors; and
you are happy with both yourwork and your lifestyle, not grinding your teeth every night over howyour customers don't appreciate your true worth.
If you make a habit of giving yourcustomers too good a deal, two things will inevitably happen sooner orlater:nbsp; you will become physically and mentally exhausted; and youwill end up hating your customers for putting you in a position ofindentured servitude (when after all it's entirely your fault).
Here are some tips to make sure that you are getting what you deservewhile still remaining competitive:
never charge less than 90%of what your closest competitor charges - your customers are stillgetting a good deal, and you are not leaving too much money on thetable; and
make sure you are chargingenough to enable you to live comfortably in your area - if you need$200,000 a year to put your kids through college and live an uppermiddle class existence in your community, then making $150,000 a yearjust won't cut it even though a lot of folks elsewhere in the countrywould gladly settle for that.
You can raise your prices now fornew clients, but what about your existing ones?nbsp; Once clients getused to paying a certain amount for your services, they squeal likestuck pigs when you increase your rates.nbsp; Here are a couple of"stealth" tricks for raising your prices for existing clients withoutbeing too obvious about it:
charge "flat fees" that areat least 125% of what you would charge for doing the same job on anhourly or "per diem" basis (you would be amazed how many customers willaccept a higher overall fee in exchange for the security of knowingwhat the exact amount of your bill will be); and
consider charging a "premiumfee" for projects that are going to eat up a lot of your time, forevening/weekend work, or for other "special access" a client demands(for example, I don't give my cellphone number to any client that isn'twilling to pay a minimum $25,000 for legal services each year - ifthey're going to bust my chops on a Sunday afternoon they should beprepared to pay my home mortgage each month).
Whenever you "sell yourself short"by not charging enough for your services, it's always due to a lack ofconfidence on your part.nbsp; If the customer doesn't call you backwhen you quote them a fee, that's bad news.nbsp; But it's also badnews if they don't try to negotiate at least a little bit.nbsp; Whenthe customer winces slightly when they see your proposal, contract orinvoice, but signs anyway after asking a couple of questions, that'swhen you know "the price is right."nbsp; Don't settle for a pennyless.
Cliff Ennico (
cennico@legalcareer.com
)is a syndicated columnist, author and former host of the PBS televisionseries 'Money Hunt'. This column is no substitute for legal, tax orfinancial advice, which can be furnished only by a qualifiedprofessional licensed in your state. To find out more about CliffEnnico and other Creators Syndicate writers and cartoonists, visit ourWeb page at
www.creators.com
.COPYRIGHT 2009 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE,INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:52:34Z
A Management Checklist For Troubled Times
Staff
http://www.DrLaura.com/b/A-Management-Checklist-For-Troubled-Times
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- /9414.html
2010-05-07T08:52:32Z
2010-05-07T08:52:32Z
Staff
2010-05-07T08:52:32Z
Protect Your Laptop: 7 Tips for Travelers
Staff
http://www.DrLaura.com/b/Protect-Your-Laptop:--7-Tips-for-Travelers
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2010-05-07T08:52:32Z
2010-05-07T08:52:32Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Protect Your Laptop: 7 Tips for Travelers
By John Sileo
www.Sileo.com
Laptop anti-theft, or protecting your mobile data, is a MUST for corporations and consumers. Almost half of workplace identity theft takes place because of mobile data. And the average value of the data on your laptop can be worth hundreds of thousands of dollars to a corporate spy or experienced identity thief. At the higher end of the scale, the value of the 26 million Veteran identities on a laptop lost over a year ago was estimated to be worth more than $100 million. Those are the types of computer security risks that can make your business unprofitable. But there are solutions.
Broken Window Theory: By removing graffiti and repairing broken windows in crime hot-spots throughout New York City, the NYPD was able to drastically reduce the entire city's overall crime rate (not just the quantity of graffiti and broken windows), including thefts, burglaries, muggings and murders. In other words, certain actions that we take (e.g., focusing on crime hot-spots rather than on every type of crime) can have a disproportionately positive effect on achieving our goal (e.g., lower crime rates). Business translation: you get a far higher return on investment for certain well-planned tactical strikes than you do for far more expensive strategic initiatives.
My point? In the world of workplace identity theft and corporate data breach, laptop computers are the biggest broken window. Not only do laptops account for a disproportionate amount of data theft, but training the organization to properly protect mobile computers has a radiant effect on all other types of identity protection. Good habits in one area breed good habits in others.
Stop the theft of corporate laptops (or personal laptops with corporate data on them) and you have eliminated approximately 50% of the entire data breach problem at a fraction of the security cost.
Laptop theft generally occurs in transit: airports, hotels, cars, commuter trains, conferences, off-site meetings, vacations, coffee shops, etc. Build laptop anti-theft training into your organizational culture of privacy:
7 Laptop Anti-Theft Tips for Travelers
1. Laptop Anti-Theft Tip #1: Leave it at home. Okay, I know most of us won't leave our laptops at home when traveling because we would be leaving our digital identity behind. But data theft goes through the roof on the road, so consider using your password protected iPhone or BlackBerry to keep in touch. If it is critical that you travel with your laptop, then...
2. Laptop Anti-Theft Tip #2: Carry less data. Stop carrying data on your laptop computer that you don't absolutely need. If you don't need to have client information on the hard drive, don't put it there in the first place. If you have an encrypted VPN connection with your company, pull the files off of your corporate network once you are at your destination (e.g., work, hotel, meeting). Many executives that have hired me to speak to their organizations (and take computer data security seriously) have an inexpensive netbook (very small laptop) that they take on the road. Its only purpose is for travel. Instead of carrying all of their sensitive files on the netbook hard drive, they take only what they need for the trip, and still have the ability to access the web, email and any cloud computing software (Salesforce.com, Wordpress, etc.) during their travels.
3. Laptop Anti-Theft Tip #3: Use strong passwords. Passwords are the primary locks on our laptops. Make sure that you create an alpha-numeric-symbol-upper-lower-case password, like P@55w0rd! (do you see the hidden word that makes this easy to remember? By the way, don't use this password). The longer the password, the better. I recommend passwords greater than 8 characters. I use a password protection program that I love called 1Password (available for the Mac, which I use because I find it to be a safer computing platform). It allows me to use highly-secure passwords that I don't have to keep track of in an unsafe way (a spreadsheet, in my phone, in Outlook).
4. Laptop Anti-Theft Tip #4: Use the hotel safe (See Video
here
.) Most hotels have safes in the room that let you determine the combination. I feel that these are relatively safe. Sometimes your laptop won't fit, so I suggest that you pull the hard drive out of the laptop (which is where all of the identity lives) and place that in the safe. In a pinch, place the DO NOT DISTURB sign on your door when you leave for the day to lower the chances of someone entering your room during the day. True, your room won't get cleaned, but you are keeping potential thieves not just from your laptop, but from any client documents, passports or intellectual capital that might be in the room. No matter how clever we are, hiding valuables is a poor option. Can't you just picture a person who appears to be a hotel employee leisurely searching the few hiding places in your room? A thief will know every one of those spots by heart. See the video above.
5. Laptop Anti-Theft Tip #5: Encrypt your hard drive. The data on your hard drive is no good if the thief can't make any sense of it. For a very small investment, you can install software on your laptop that makes it exceptionally difficult for a thief to get to your private information. Encryption turns your data into a puzzle that only your password unlocks. If you are using a company laptop, check with your I.T. department before installing encryption. They may have already done it for you. Apple laptops come standard with encryption, but you have to turn it on and understand the implications for your network sharing.
6. Laptop Anti-Theft Tip #6: Lock it up. Even when you are not traveling, the best policy is to physically lock up your laptop. More laptops are stolen out of the back of cars while you are shopping, out of your laptop bag while buying coffee, out of your office while it is unattended and out of homes while you are on vacation. Take an extra minute to lock it up in a locking filing cabinet, a fire safe or behind a locked door. Even if it only makes it less convenient for the thief, it improves your chances that they will move on to a less prepared victim.
7. Laptop Anti-Theft Tip #7: Destroy it. Remember, your data has a whole lot longer life than your laptop! When you are through with it, make sure that you digitally shred the hard drive before you donate it, give it back to the HR department or throw it away. Just because the laptop is out of date doesn't mean that the data on it is too.
About the author: After losing his business to data breach and his reputation to identity theft, John Sileo became America's leading identity theft and data breach speaker. His recent clients include the Department of Defense, the FDIC, Blue Cross Blue Shield and Pfizer. Learn more about
Identity Theft Expert John Sileo here
. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:52:32Z
The Fine Art Of "Tweeting" Legally
Staff
http://www.DrLaura.com/b/The-Fine-Art-Of-Tweeting-Legally
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- /9416.html
2010-05-07T08:52:31Z
2010-05-07T08:52:31Z
Staff
2010-05-07T08:52:31Z
What Lawyers Will (And Won't) Do To Help Your Business
Staff
http://www.DrLaura.com/b/What-Lawyers-Will-And-Wont-Do-To-Help-Your-Business
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2010-05-07T08:52:31Z
2010-05-07T08:52:31Z
Staff
2010-05-07T08:52:31Z
The Future -- Your Future -- Is "Out There"
Staff
http://www.DrLaura.com/b/The-Future----Your-Future----Is-Out-There
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2010-05-07T08:52:31Z
2010-05-07T08:52:31Z
Staff
2010-05-07T08:52:31Z
When Bob and Carol and Ted and Alice Go Into Business Together
Staff
http://www.DrLaura.com/b/When-Bob-and-Carol-and-Ted-and-Alice-Go-Into-Business-Together
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2010-05-07T08:52:31Z
2010-05-07T08:52:31Z
Staff
2010-05-07T08:52:31Z
Dealing With "The Incredible Disappearing Client"
Staff
http://www.DrLaura.com/b/Dealing-With-The-Incredible-Disappearing-Client
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- /9420.html
2010-05-07T08:52:29Z
2010-05-07T08:52:29Z
Staff
2010-05-07T08:52:29Z
Can eBay's "Vero" Program Be Fixed?
Staff
http://www.DrLaura.com/b/Can-eBays-Vero-Program-Be-Fixed
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2010-05-07T08:52:29Z
2010-05-07T08:52:29Z
Staff
2010-05-07T08:52:29Z
Juggling Work and Family When You Work at Home
Staff
http://www.DrLaura.com/b/Juggling-Work-and-Family-When-You-Work-at-Home
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2010-05-07T08:52:29Z
2010-05-07T08:52:29Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Juggling Work andFamily When You Work at Home
By Jill Hart
http://AskJill.cwahm.com
Q: I have been having my homebased business for three years now and I still am struggling with howto juggle business and being a mom, wife and housekeeper. How do youjuggle these? I want to make this a success, but so far it's only beenfrustration.
My children are four and two years old and they are more challengingthan most (not as in spoiled, but as in needing more time than theaverage kid). Your thoughts would be greatly appreciated!
A: GREAT question. My kids arenow seven and four, so I now have a little bit of help in myseven-year-old. But, I found something that I had written a few yearsago. In it, I listed my kids' ages as four and one. I could tell whenreading it that I had been very frazzled. I think I lived in a state offrazzled during those years when they were both so small.
My main advice would be to cut yourself some slack. Things will geteasier and more manageable as your kids get older.
My practical advice is this:
1. Plan out menus each week.
I literally spend about two minutes on this. I have a small magneticdry-erase board that I keep on my refrigerator. Each Sunday, I writeout the days of the week and what we'll have for supper that day.(Lunches almost always consist of sandwiches or something easy likethat since it's just me and the kids.)
This makes grocery shopping a breeze because I know just whatingredients I need. It also alleviates the nagging thoughts of "whatare we going to eat tonight?" If possible, have one or both of yourkids help you decide what to put. You'll be surprised at how much theylike having a say in what goes on that board!
2. Set a day for everything.
My days look something like this with children taking precedent:
Mondays - Housework andlaundry (and business tasks as time allows)
Tuesdays - Grocery shoppingand business tasks (this used to be during naptime, but is now duringschool time)
Wednesdays - Bible study andlunch with hubby (and business tasks as time allows)
Thursdays - Business tasksas much as possible with playtime in between
Friday - Take it Easy Day(and business tasks as time allows)
Saturdays - Laundry
Sunday - Church and a good,long nap
It seems a little boring on paper,but I can't tell you how much this little schedule has saved my sanity.I know when I get up in the morning what I have ahead of me and it isbroken into manageable segments. You'll find that scheduling thingsamongst these "main" schedule items will get easier and easier as youget used to the schedule.
About the Author:
Jill Hart is the founder ofChristian Work at Home Moms, CWAHM.com. Jill is a co-author of theupcoming book So You Want To Be a Work-at-Home Mom (Beacon Hill, Sept.2009). Jill welcomes work-at-home questions at
http://AskJill.cwahm.com
. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:52:29Z
Online Publicity: Economic Survival Tips You Need to Know
Staff
http://www.DrLaura.com/b/Online-Publicity:-Economic-Survival-Tips-You-Need-to-Know
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2010-05-07T08:52:27Z
2010-05-07T08:52:27Z
Staff
2010-05-07T08:52:27Z
When "NonCompetes" Come Back To Haunt You
Staff
http://www.DrLaura.com/b/When-NonCompetes-Come-Back-To-Haunt-You
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2010-05-07T08:52:27Z
2010-05-07T08:52:27Z
Staff
2010-05-07T08:52:27Z
Choosing the Home-Business That's Right For You
Staff
http://www.DrLaura.com/b/Choosing-the-Home-Business-Thats-Right-For-You
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2010-05-07T08:52:27Z
2010-05-07T08:52:27Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Choosing theHome-Business That's Right For You
By Jill Hart
PositivelyFeminine.com
Starting down a new career path can be both exciting andterrifying.nbsp; There are a lot of tools on the market that can helpyou determine what type of career field you should enter. But what ifyour chosen "career path" is being an entrepreneur and running ahome-based business? Do the rules change? Below are five questions toask yourself to help you determine what type of business might be rightfor you.
1. What is your passion?
Answer this question with thefirst thing that comes to mind: If money were no object and you coulddo anything, what would you do? You might have answered "be awriter",nbsp; "speak at conferences," "bring my product idea to life"or any number of things. Whatever your answer, this most likely is yourpassion. I challenge you to take the time to ponder this and see ifthere is a way to bring your dream to fruition.
2. Whattypes of things did you like to do as a child?
Many times the toys and games weloved as children give us a glimpse into who we have become as adults.If you loved climbing trees, you may now be an "outdoorsy" type ofperson. Think about how this might be incorporated into your business.For instance, you might enjoy setting up outdoor birthday parties forchildren or selling herbs from your backyard garden.
3. Whattype of products would you be interested in representing?
If you're looking in the directionof direct sales, whether that be your own product or an establishedhome-based business option, you need to think through what types ofproducts you'd be comfortable presenting to your customers. Take thetime to do some research and find a product that truly excites you.Your customers will see your sincerity and that can sell a product justas easily as a fancy presentation.
4. Whatskills and experience do you bring to the table?
If you've left the corporate worldin favor of working at home, you've undoubtedly brought with you a setof skills. There may be a way to market those skills in a new way andturn them into a profitable business. For instance, if you were anexecutive assistant you may be able to type 80 words or more perminute. You could set up shop as a Virtual Assistant and help otherbusiness owners in processing orders, transcribing documents and muchmore.
5. Areyou thinking outside of the box?
Most of us have a fear of theunknown. We many times assume that if we haven't done something beforeit is simply out of reach. This carries over to the business world aswell. We take our products or services and market them in the same waythat we see other business owners using. However, it can be much moreeffective to find new and innovative ways to market. One home-basedbusiness owner I know sells stuffable toy kits. Instead of using theusual home parties and birthday party events, she works almostexclusively with children's hospitals doing fundraisers. She makes agreat living and helps not only the hospitals, but the children aswell. She is a great example of unique marketing and overcoming themundane marketing methods that so many business owners resignthemselves to.
Your home-based business should be unique to you. It should make youwant to get up each morning excited about the possibilities of the dayahead. Take the time to thoroughly think through the questions aboveand you'll be on your way to making a great, well thought out decisionthat has your name written all over it!
About the Author:
Jill Hart is the founder of Christian Work at Home Moms,CWAHM.com. Jill is co-author of the upcoming book So You Want To Be aWork-at-Home Mom (Beacon Hill, Sept. 2009). Jill welcomes work-at-homequestions at
http://AskJill.cwahm.com
.Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:52:27Z
6 Steps to Avoid a Laptop Identity Crisis
Staff
http://www.DrLaura.com/b/6-Steps-to-Avoid-a-Laptop-Identity-Crisis
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2010-05-07T08:52:26Z
2010-05-07T08:52:26Z
Staff
2010-05-07T08:52:26Z
Tweet Breach: 140 Characters of Sheer Destruction
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http://www.DrLaura.com/b/Tweet-Breach:-140-Characters-of-Sheer-Destruction
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2010-05-07T08:52:26Z
2010-05-07T08:52:26Z
Staff
2010-05-07T08:52:26Z
Bartering: A Legal And Tax Primer
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http://www.DrLaura.com/b/Bartering:-A-Legal-And-Tax-Primer
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2010-05-07T08:52:26Z
2010-05-07T08:52:26Z
Staff
2010-05-07T08:52:26Z
Don't Give Stock To Your Employees; Make Them Pay
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http://www.DrLaura.com/b/Dont-Give-Stock-To-Your-Employees;-Make-Them-Pay
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2010-05-07T08:52:25Z
2010-05-07T08:52:25Z
Staff
2010-05-07T08:52:25Z
Freeze Your Credit
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http://www.DrLaura.com/b/Freeze-Your-Credit
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2010-05-07T08:52:25Z
2010-05-07T08:52:25Z
Staff
2010-05-07T08:52:25Z
Seven Strategies that Entrepreneurs Must Apply
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http://www.DrLaura.com/b/Seven-Strategies-that-Entrepreneurs-Must-Apply
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2010-05-07T08:52:25Z
2010-05-07T08:52:25Z
Staff
2010-05-07T08:52:25Z
Taking Money Out Of A Small Business
Staff
http://www.DrLaura.com/b/Taking-Money-Out-Of-A-Small-Business
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2010-05-07T08:52:24Z
2010-05-07T08:52:24Z
Staff
2010-05-07T08:52:24Z
A Guerrilla Approach To Creating a Hit Television Show
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http://www.DrLaura.com/b/A-Guerrilla-Approach-To-Creating-a-Hit-Television-Show
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2010-05-07T08:52:24Z
2010-05-07T08:52:24Z
Staff
2010-05-07T08:52:24Z
Three Contracts Every Self-Employed Person Needs
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http://www.DrLaura.com/b/Three-Contracts-Every-Self-Employed-Person-Needs
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2010-05-07T08:52:24Z
2010-05-07T08:52:24Z
Staff
2010-05-07T08:52:24Z
Putting Money Into A Small Business
Staff
http://www.DrLaura.com/b/Putting-Money-Into-A-Small-Business
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2010-05-07T08:52:24Z
2010-05-07T08:52:24Z
Staff
2010-05-07T08:52:24Z
When Selling A Business, Neither A Borrower Nor A Lender Be...
Staff
http://www.DrLaura.com/b/When-Selling-A-Business,-Neither-A-Borrower-Nor-A-Lender-Be...
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2010-05-07T08:52:22Z
2010-05-07T08:52:22Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>When Selling A Business, Neither A Borrower Nor A Lender Be...
By Cliff Ennico
www.creators.com
"Last year, we sold our small-sized, family business corporation to two individuals. The deal was that they both pay us half of the purchase price for the business and get equally 50% ownership. While the first person paid his share all in cash, the second person chose to pay his share in 10 monthly installments. The year passed by and he (the second person) did not pay a penny. Now, the new owners aren't talking to each other - they can't agree on even basic business transactions. Unfortunately, the first person can't get out because he personally guaranteed the retail lease for the business. The second person has a poor credit score, due to a prior bankruptcy, so the second person can't put the lease in his own name. It feels like we are stuck. What are the available options to solve these disputes?"
Let's take this one step at a time. First, if I understand your e-mail correctly, you sold your business to the two individuals, not to a corporation or a limited liability company (LLC). This means that they purchased the business as a partnership, which means that they have "joint and several liability" for the purchase price and all other partnership debts. In plain English, each partner is liable for the whole purchase price (not just the amount he paid you at the closing), and you can pursue either or both of them if payment is not made.
Clearly, the second person is at fault for not paying his share of the purchase price. But you have every legal right to collect the entire balance of the purchase price due from the first person, or from both partners, unless you promised the first person in writing you wouldn't do that. The first person can then bring a legal action against his partner seeking reimbursement for his share of the purchase price - lawyers call that a "contribution and indemnity suit". Given the second person's poor financial condition, the suit probably won't be successful, but as the teenagers say nowadays, "that is SOOOOOO not your problem!"
Why did you wait for the second person to miss all 10 of his installment payments before bringing the subject up with him and his partner? If I were in your shoes, I would have been yelling at the top of my lungs and demanding payment the minute the first installment date was missed. It appears to me that you have become a little too friendly with the first person: you have been listening with a little too much sympathy to his "tale of woe", and are reluctant to hold him accountable for his partner's default. Nevertheless, you sold your business in good faith and have every right to collect the full purchase price due to you. What happens between the two partners has nothing to do with the debt owed you, and you have a duty to yourself and your family to collect that debt from whoever has a pocket deep enough to pay.
Assuming that neither partner has the resources to pay you at this point, you have to look at the possibility of taking control of the business back from them. Hopefully, when you sold the business, you insisted that the partners put up some collateral - their stock in the corporation or the assets of the business - for the second person's loan. If the loan transaction was properly drafted, you can "foreclose" on that collateral, take back the business, and satisfy your debt out of the business' future income.
Of course, this will mean you will have to reassume the lease of the retail space where the business is being conducted. If the two partners owe any back rent or other amounts to the landlord, you probably will have to pay these current in order to stay at that location. You also need to look at the paperwork you and the two partners signed at the closing - if they "subleased" the retail space from you for the duration of the lease term, you may still be on the hook as a "guarantor" of their lease obligations until the lease expires - that's the way the law works in most states.
My strong suspicion is that this was a "handshake deal" with no lawyers on either side, and you probably are "stuck". Aren't you glad now you saved a few bucks in legal fees?
Here are a few lessons from this experience:
never sell or buy a business without competent legal help;
whenever you agree to "loan" money to someone, get it in writing and be sure to take collateral in case there's a default;
when assigning or transferring a lease, make sure the landlord releases you in writing from any future lease obligations;
never buy a business as a partnership - form a corporation or LLC to act as the purchaser; and
never go into business with someone who has a prior history of cheating his creditors.
Cliff Ennico (
cennico@legalcareer.com
)is a syndicated columnist, author and former host of the PBS televisionseries 'Money Hunt'. This column is no substitute for legal, tax orfinancial advice, which can be furnished only by a qualifiedprofessional licensed in your state. To find out more about CliffEnnico and other Creators Syndicate writers and cartoonists, visit ourWeb page at
www.creators.com
.COPYRIGHT 2009 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE,INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:52:22Z
Paved With Good Intentions...
Staff
http://www.DrLaura.com/b/Paved-With-Good-Intentions...
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2010-05-07T08:52:20Z
2010-05-07T08:52:20Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Paved With GoodIntentions...
By Cliff Ennico
www.creators.com
#147;For the past several years, I have been making doll clothes and teddybear outfits in my spare time and selling them on eBay, Amazon andother more specialized handicrafts sites such as etsy.com. I understandthere's a new law that would require me to have my productsprofessionally tested before I sell them to make sure there are noharmful chemicals or lead in them. While the law applies primarily tomass market 'manufacturers', such as Chinese toy companies, there seemsto be no exception for small businesses like mine. There's no way I cancomply with this law #150; is the Government trying to put me out ofbusiness?#148;
Until Friday (January 30, 2009), the short answer to this reader'squestion was "yes".
In August 2008, Congress passed the Consumer Product Safety ImprovementAct (CPSIA) which, among other things, prohibits the sale of certainitems intended for consumption by children 12 years of age or younger.Specifically, beginning February 10, 2009, children's products cannotbe sold if they contain more than 600 parts per million (ppm) of lead.Also, certain children's products manufactured on or after February 10,2009 cannot be sold if they contain more than 0.1% of certain specificphthalates (chemicals that are added to plastics to give them moreflexibility).
CPSIA requires manufacturers of children's products to have them testedfor compliance with the law, and to certify in writing to distributorsand retailers that the CPSIA's requirements have been met. There's onlyone problem: the CPSIA did not define - and still has not defined --the term "manufacturer". Clearly, a toy factory in Asia qualifies. Butso does someone working out of their home making doll clothes fromleftover cloth.
Now, I don't think anyone can argue with the basic premise of CPSIA -that keeping kids away from lead and harmful chemicals in toys, dollsand other kid stuff is a REALLY good idea.
But the people who drafted CPSIA forgot one thing. One of the few lawsthat will never be repealed, amended or superseded is the "law ofunintended consequences." Perhaps the best expression of this law isthe old saying "the road to Hell is paved with good intentions",attributed to the medieval cleric Bernard of Clairvaux (1091-1153).Sometimes, when trying to do good for some people, legislators andlawmakers effect harm on other people. Most of the time, this isunintentional - laws and regulations are often passed quickly, underdeadline pressure and heat from the media, to respond to an immediateneed or public concern. But when it happens, it still hurts.
Last month, the U.S. Consumer Product Safety Commission (CPSC), thefederal government agency responsible for implementing and enforcingCPSIA, began to get the idea that the "testing and certification"requirement wasn't going to work for a lot of people. It issued apolicy statement clarifying that "sellers of used children's products,such as thrift stores and consignment stores, are not required tocertify that those products meet the new lead limits, phthalatesstandard or new toy standards."
Good news for people selling doll clothes and teddy bear outfits oneBay, but only if they didn't actually make the stuff themselves. Eventhen, there could be trouble. The CPSC added the following crypticwarning: "resellers cannot sell children's products that exceed thelead limit and therefore should avoid products that are likely to havelead content, unless they have testing or other information to indicatethe products being sold have less than the new limit. Those resellersthat do sell products in violation of the new limits could faceciviland/or criminal penalties."
So, are resellers off the hook as long as they stay away from certaintoys -- such as metal soldiers -- that are likely to contain some lead,or must they educate themselves to recognize the CPSIA's bannedchemicals? How many questions must they ask their vendors orconsignors, who probably don't know the answers themselves? No answers,at least not yet.
Even assuming resellers are off the hook, what about the homehandicrafters, who could still be considered "manufacturers" underCPSIA? Since Congress did not give any guidance when they passed thelaw, the CPSC did the only thing they could do under the circumstances:
They deferred the "testing and certification" requirement for one year,until February 10, 2010, in order to "give the [CPSC] staff more timeto finalize four proposed rules which could relieve certain materialsand products from lead testing and to issue more guidance on whentesting is required and how it is to be conducted."
Whew! So is it safe to start sewing teddy bear outfits again? Probably.But if you're making children's jewelry items, make sure there'sabsolutely no lead in them - that specific ban is not subject to theone-year stay.
For more information on CPSIA, go to
www.cpsc.gov/about/cpsia/cpsia.html
.But don't expect answers, orclarity.
Cliff Ennico (
cennico@legalcareer.com
)is a syndicated columnist, author and former host of the PBS televisionseries 'Money Hunt'. This column is no substitute for legal, tax orfinancial advice, which can be furnished only by a qualifiedprofessional licensed in your state. To find out more about CliffEnnico and other Creators Syndicate writers and cartoonists, visit ourWeb page at
www.creators.com
.COPYRIGHT 2009 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE,INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:52:20Z
Setting Up A "Venture" Limited Liability Company The Right Way
Staff
http://www.DrLaura.com/b/Setting-Up-A-Venture-Limited-Liability-Company-The-Right-Way
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2010-05-07T08:52:18Z
2010-05-07T08:52:18Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Setting Up A "Venture"Limited Liability Company
The Right Way
By Cliff Ennico
www.creators.com
"Three friends and I are going off on our own to set up an informationtechnology consulting business. We want to form a limited liabilitycompany for this business, but we want it to be flexible enough that wecan grow and attract venture capital investors. What are some of thethings we should be thinking about legally?"
Limited liability companies (LLCs) are very easy to set up when thereare only one or two people involved in the business, or the business isnot likely to grow rapidly (for example, a family owned retail orservice business). When people who aren't related and don't know eachother very well go into business together, things get a bit morecomplicated.
Here are some of the things you and your friends should discuss beforecommitting to this venture:
Who Will Own This Business? Right off the bat I see a problem --thereare four of you. If you divvy up the LLC ownership equally, you'resetting up a situation where if two of you want to "zig" and the othertwo want to "zag", the LLC cannot function. We lawyers call that"deadlock". Try to divide up the equity so that one or two of you own51% or more of the LLC ownership shares (called #147;membershipinterests#148;).
Who Will Run This Business? You should consider forming a "boardofmanagers" to run the LLC business, similar to a corporation's board ofdirectors.
Three of you should serve as the "managers" of the business to avoid"deadlock" situations. So the fourth person won't feel left out, youcan add a "supermajority voting" clause to your LLC Operating Agreement(similar to a partnership agreement) requiring that the four LLC ownersunanimously approve major decisions affecting the LLC business (such asthe admission of a new member, a merger or acquisition, or investmentsover a certain dollar amount). Your lawyer can provide you with a listof common matters that are covered in a "supermajority voting" clause.
Capital Contributions. At some point, your LLC will needadditionalinfusions of cash. If you do not make these "pro rata" (in proportionto your respective LLC ownership percentages), then your percentageownership of the LLC will change depending on the amount actuallycontributed by each member. To keep this from happening, consider aclause in your LLC Operating Agreement requiring that any additionalinfusions of cash be made in the form of "loans" - that way if one ormore members cannot pay their fair share, the others can make up for itwithout changing the ownership of the LLC.
Compensation. Since all of you will be working in the business,youwill want to make withdrawals from the LLC checking account from timeto time to pay your living expenses (called "draws"). Work out aformula now as to how each of you will take "draws," or put a provisionin your LLC Operating Agreement requiring the members to voteunanimously on "draws" each month.
Voluntary Withdrawal. If one of you has trouble meeting hisobligationsto the LLC, or comes under family pressure to "get a day job" if theLLC business isn't providing him with a decent living, you will have tofigure out a way for him to "withdraw" from the LLC. You should agreeto pay him fair compensation for his LLC ownership interest if hewithdraws, but make sure (1) the LLC pays him over a period of five to10 years so as not to burden the LLC#146;s cash flow, and (2) he or she isbound by a noncompete clause not to steal business from the LLC orotherwise compete unfairly with the remaining members.
Involuntary Withdrawal. If one of you dies, becomes disabled, isdivorced from his or her spouse, or files for bankruptcy, there#146;s achance a "stranger" will end up owning a piece of the LLC. Have yourattorney draw up a "buy-sell" agreement requiring the LLC to purchasethe ownership interest of any member who dies or becomes disabled, orany person who acquires a piece of the LLC in a divorce or bankruptcyproceeding.
As soon as possible after you form the LLC, the LLC should purchase"key person" life insurance and "disability buyout insurance" on eachof the four owners (or those owners without whom the business couldn'tfunction). That way, if one of you dies or becomes disabled, theproceeds of the insurance policy can be used to purchase his or herownership interest without impairing the LLC's cash flow.
Watch Out for Noncompetes. Since it appears some or all of youareleaving "day jobs" to start this new business, make sure you haven'tsigned any "noncompete" or similar agreements with your currentemployer. Even if you haven't, try to avoid contacting your employer'scustomers, suppliers or employees for at least a year after you startthe new business.
Cliff Ennico (
cennico@legalcareer.com
)is a syndicated columnist, author and former host of the PBS televisionseries 'Money Hunt'. This column is no substitute for legal, tax orfinancial advice, which can be furnished only by a qualifiedprofessional licensed in your state. To find out more about CliffEnnico and other Creators Syndicate writers and cartoonists, visit ourWeb page at
www.creators.com
.COPYRIGHT 2009 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE,INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:52:18Z
The Right Way to Let Franchisees Out Of Their Commitments
Staff
http://www.DrLaura.com/b/The-Right-Way-to-Let-Franchisees-Out-Of-Their-Commitments
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2010-05-07T08:52:16Z
2010-05-07T08:52:16Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The Right Way to LetFranchisees Out
Of Their Commitments
By Cliff Ennico
www.creators.com
A lot of corporate executives who have been "downsized" in the recenteconomy downturn, especially those in their 40s and 50s, are looking tobuy franchises. Their thinking seems to go something like this:
"my 401(k) has lost a ton of value, there aren't any safeinvestments out there right now, so why not use at least some of what'sleft in my 401(k) to provide an income stream and a future for myself?";
"franchises are generally safer than standalone small businesses- you get lots of hand-holding and support from the franchise, andthere's a 'structure' to running a franchise that's similar to what youhave in a corporate environment";
"franchises aren't forever - the typical franchise term isbetween 10and 20 years #150; but that's okay in my case since all I'm looking for isa 'bridge' until I can retire at age 65 or 70 #150; at that point I'll sellthe franchise to someone else and have some fun before I die."Still, the question had to be answered. I did it by talking about twowords - two simple words - that you should write down on a Post-itNotereg;, put it on your computer, your bathroom mirror or anywhereelse you will see them several times a day. Make them your dailymantra, for these are the words that will help you get through whatevereconomic troubles we have to live through the next few years.
All well and good, but . . . what happens if the franchise doesn#146;t workout?
Most franchise agreements do not allow franchisees to terminate therelationship before the franchise term has expired. The idea is that ifthings don't work out for whatever reason:
it was your fault #150; you weren't a sufficient "fit" for thefranchise, or didn't give it the old college try; and
you should sell your franchise to someone who can do a better jobwith the franchise territory than you did.
That's okay if we're talking about an established franchise likeMcDonald'sreg; or Burger Kingreg; -- hey, if you own one of these andare having trouble making money, you must be on Mars somewhere.
But the franchises most people are looking at nowadays are "earlystage" franchises #150; with fewer than 100 franchisees, and sometimes lessthan 50 #150; that are still testing their business models. If a franchiselike THAT doesn't work out, there's just as good a chance it's thefranchise's fault as it is yours, and the franchise should let you outof the deal.
That's easier said than done, though. Not only do most early stagefranchises not give you an opportunity to get out of the franchise ifthings don't work out, they actually impose penalties #150; sometimes LARGEpenalties -- if you ask to be released early. For example, if thefranchise imposes a "minimum monthly royalty" requirement on theirfranchisees, the franchise will require you to prepay all monthlyminimum royalties for the balance of the franchise term, sometimes in asingle lump sum installment.
Crunch the numbers: if you have a 10-year franchise term, your minimummonthly royalty is $500, and you elect to terminate the franchise atthe end of Year Three, that leaves seven years remaining on thefranchise term, or 84 months. Multiply that by $500, and it will costyou $42,000 just to get out of the franchise and get on with your life(the franchise will discount this amount to "present value," of course,but the reduction won't be more than a couple thousand dollars).
I recently reviewed a franchise program #150; a very early stage programwith fewer than 30 franchisees nationwide #150; where the franchise gotthis right. Here's how this program works.
When a franchisee signs up, she commits to a monthly royalty of 8% ofher gross sales, and signs a "promissory note" agreeing to pay thefranchisor a total of $200,000 in royalties (without interest) duringthe 10-year franchise term. As the franchisee pays royalties eachmonth, the amount paid is applied to reduce the note so that once hertotal royalty payments reach $200,000, the "promissory note" ceases toexist.
If the franchisee wants to quit the franchise before the $200,000"promissory note" is fully paid, she has two choices. She can either(1) agree not to compete with the franchise for a three-year period, or(2) refuse to sign the noncompete agreement. If she chooses to sign the"noncompete", the $200,000 "promissory note" is forgiven. If she electsto compete with the franchise, however, the balance due on the $200,000"promissory note" becomes payable in monthly installments at 6%interest per annum over a five-year period.
If the franchisee elects to quit the franchise after the $200,000"promissory note" is paid in full, the noncompete period is reduced toone year and the franchisee doesn#146;t owe anything to the franchise.
An approach like this one not only gives franchisees a choice of "exitstrategies" if the franchise doesn't work out, but it also demonstratesa little humility on the franchise's part #150; an acknowledgment thatnobody really knows whether the franchise model will work in alllocations, in all economic climates, and under all circumstances.
Sadly, most franchises are not as enlightened as this one. If you areplanning to buy a franchise anytime soon, be sure you understandclearly what your "exit strategy" will be if things don't work out. Anddon't buy a franchise if there#146;s even the slightest doubt you can lastout the full franchise term.
Cliff Ennico (
cennico@legalcareer.com
)is a syndicated columnist, author and former host of the PBS televisionseries 'Money Hunt'. This column is no substitute for legal, tax orfinancial advice, which can be furnished only by a qualifiedprofessional licensed in your state. To find out more about CliffEnnico and other Creators Syndicate writers and cartoonists, visit ourWeb page at
www.creators.com
.COPYRIGHT 2009 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE,INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:52:16Z
Two Little Words That Will Get You Through The Coming Rough Times
Staff
http://www.DrLaura.com/b/Two-Little-Words-That-Will-Get-You-Through-The-Coming-Rough-Times
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2010-05-07T08:52:14Z
2010-05-07T08:52:14Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Two Little Words That Will Get You Through The Coming Rough Times
By Cliff Ennico
www.creators.com
I had the privilege of speaking this week to the local chapter of SCORE (the Service Corps of Retired Executives), a volunteer organization of senior and retired business people who devote a portion of their time to providing free advice and counseling to struggling small businesses (contact
www.score.org
to find the chapter nearest you).
After all of the usual questions about legal and tax issues, a woman in the back of the room raised her hand and asked: "Cliff, we appreciate your advice, but we need some inspiration too. Everything we read in the media and see with our customers is scaring the heck out of us. Can you tell us anything that will give us some comfort and help us through these extremely difficult times?"
I admit I was a little thrown by the question. Franklin Delano Roosevelt famously answered this question 76 years ago by saying "we have nothing to fear but fear itself," but heck, I'm no Franklin Delano Roosevelt.
Still, the question had to be answered. I did it by talking about two words - two simple words - that you should write down on a Post-it Notereg;, put it on your computer, your bathroom mirror or anywhere else you will see them several times a day. Make them your daily mantra, for these are the words that will help you get through whatever economic troubles we have to live through the next few years.
Humility.
Let's face it, the past 50 years have been a wonderful party. Three successive living generations - Baby Boomers, Gen Xers and Millennials - have known nothing but good times. There have been stressful times, of course - several recessions, the Vietnam War - but these things never really impacted most of us personally. War, famine, epidemics, and suffering were things that happened to other people far, far away - we watched them on television, and the better-minded of us tried to muster support to stop them, but we never actually experienced them ourselves. And a lot of us were arrogant and deluded enough that we thought this would never change.
The idea of real hardship - not knowing where your next meal is coming from, losing your house or being evicted from an apartment, not having enough money to do what you want to do in life, accepting less out of life than we want because we simply can't have it - is totally alien to us, and as a result we are not as emotionally prepared for it as our parents and grandparents were. To them, hardship and suffering were an accepted part of the cycle of life; to us, they are an aberration.
Add to that the Baby Boomers' outlook on personal sacrifice and self-restraint, best expressed in the Grass Roots' classic 1969 pop hit "Live for Today" ("Sha la la la la la live for today . . . there's no worries, 'bout tomorrow, heeeyyyyyy . . . . ), and it's no wonder a lot of people in America have been feeling invulnerable. If it did nothing else, the past year has brought all of us back down to Planet Earth. A lot of people - including some with wonderful track records - have shown themselves to have feet of clay, and even some very good, intelligent people have done some very bad, silly and downright stupid things. And KNEW they were doing them at the time.
If after 2008 you still think you know what you are doing, think again. Entrepreneurs are particularly prone to believe their own marketing shtick, but now is not the time for arrogance or self-delusion. It's time to take a sober assessment of your business and yourself, find out who you really are, what you really can and cannot do, and avoid selling yourself as something better unless you can back it up with action.
Discipline.
The current living generations of Americans have, as a rule, not been very disciplined about a lot of things. We are a rather soft, easygoing, self-indulgent and forgiving lot, inclined to "get along by going along" and accept that anything anyone wants to do is "okay" as long as it doesn't hurt anyone. The idea that you shouldn't do something even though no one will throw you in jail for doing it (what our ancestors referred to as "sin") is alien to us. The idea of personal discipline strikes us as being vaguely authoritarian and manipulative, imposed as it was in days past by religious institutions to keep people in line -- something to be resisted, ridiculed and ignored.
Make no mistake - surviving in these times will require TONS of discipline, self-restraint, and personal sacrifice. Aside from being morally wrong, your "sins" these days can kill your business. It's time to take a close look at your company and ask yourself: are we running tight enough? Do we let things slide? Are we too forgiving of people's mistakes or ambivalent about our values as a company? Do we not insist hard enough on work, performance and results? Are we demanding enough with our people? And are we willing to punish those who don't live up to our expectations?
While you're at it, ask these questions of yourself as well . . .
Cliff Ennico (
cennico@legalcareer.com
)is a syndicated columnist, author and former host of the PBS televisionseries 'Money Hunt'. This column is no substitute for legal, tax orfinancial advice, which can be furnished only by a qualifiedprofessional licensed in your state. To find out more about CliffEnnico and other Creators Syndicate writers and cartoonists, visit ourWeb page at
www.creators.com
.COPYRIGHT 2009 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE,INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:52:14Z
Some Surefire Survivial Strategies For Tough Times
Staff
http://www.DrLaura.com/b/Some-Surefire-Survivial-Strategies-For-Tough-Times
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2010-05-07T08:52:12Z
2010-05-07T08:52:12Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Some Surefire Survivial Strategies
For Tough Times
By Cliff Ennico
www.creators.com
No doubt about it - it's getting pretty scary out there. People are cutting back on expenses, doing more things themselves that they used to "outsource" to small businesses like yours, and slowing down their payments for your products and services.
In an economy like this one, survival is all about cash flow. Keep a positive cash flow at all times, and you will make it through the tough years to come. While cutting costs will help you maintain a positive cash flow, at least for a while, sooner or later you run out of things to cut. The tougher, but longer term, way to maintain your cash flow is to do everything you can (short of selling below cost) to keep business flowing in the door.
I recently conducted a very informal (and very unscientific) poll of some local small businesses to find out what they were doing to cope with the current economy. Here are some of the survival strategies they've come up with - not only do they seem to be working, but some of these businesses are actually growing!
Strategy # 1: Don't Be Too Picky About the Work You Take On.
A couple of weeks ago I had a plumber over to my house to fix a leaking faucet in one of our bathtubs, and I asked him how his business was doing. "Well, it's tough, but we're managing," he said. "There's no construction work being done right now, so we're not doing any big jobs. But there are lots of little, 'emergency type' jobs out there, and we're doing okay with those - you are my fifth call today."
You can make money doing a few big jobs. You can also make money doing lots of little ones. Since the little jobs require less money, people are more likely to pay to have them done, especially if they're "emergencies".
Strategy # 2: Find the "Dirty Jobs" People Are Still Willing to Pay For.
I've always said that succeeding in a service business is a two-step process: (1) find a dirty job that no one likes to do but has to get done; and (2) charge lots of money for doing it. The same process applies in difficult times, except that if the job isn't really all that dirty (mowing the lawn, for example), people will start doing it themselves. You've got to find the really filthy jobs people will still pay others to do for them.
Here are some local businesses that are not only surviving but growing right now, to give you some ideas:
"pooper scooper" services that come to your home and clean up after your large, vicious dog;
"water damage" services that clean up your basement after you've had a flood;
tax return preparation services;
home health care aides for elderly people; and
automobile service stations that specialize in one or two popular makes or models (so as to compete more effectively with the auto dealerships' service departments).
Strategy # 3: Turn Your Customers Into a "Family".
Lois Mirabella of Mirabella Miniatures in Fairfield, Connecticut (
www.miniaturecorner.com/retailers/ct.htm
) sells dollhouses, dollhouse furniture, and miniature reproductions of household objects. In an economy like this one, you would think her store is failing, especially since she doesn't have a Website or a presence on eBay. But you would be wrong. Her store is always packed with customers who come from all over New England to check out her merchandise.
What's the key to her success? "I treat each of my customers as if they were family," Mirabella explains. "With this economy, people want hobbies they can do as a family, and dollhouses are perfect for that." But it's not just a question of increased demand: Mirabella keeps detailed track of each item her customers purchase, calls them on the telephone (no e-mail, because "it's too cold") when she receives new items she knows they will be interested in, introduces her customers to other customers with similar interests, and hosts "events" at her store where customers can meet the craftspeople who make their favorite miniatures.
Create a "community" where none currently exists - it's easy to say "no" to a vendor, but it's a lot tougher to say "no" to a friend.
Strategy # 4: Convert Your "Luxury" Products Into Affordable "Splurges".
A French gourmet restaurant saw a sudden downturn in business earlier this year. Rather than shut down, they downscaled their entire menu, losing their $50 entrees and offering "bistro fare" at $15 to $20, along with an expanded wine-by-the-glass selection and "appetizer size" portions of their traditional gourmet fare. Most of the lost business came back, and they are picking up new customers that wouldn't have considered eating there under their old business model.
Cliff Ennico (
cennico@legalcareer.com
)is a syndicated columnist, author and former host of the PBS televisionseries 'Money Hunt'. This column is no substitute for legal, tax orfinancial advice, which can be furnished only by a qualifiedprofessional licensed in your state. To find out more about CliffEnnico and other Creators Syndicate writers and cartoonists, visit ourWeb page at
www.creators.com
.COPYRIGHT 2009 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE,INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:52:12Z
What's In A Name? Search Engine Keywords, For Starters...
Staff
http://www.DrLaura.com/b/Whats-In-A-Name-Search-Engine-Keywords,-For-Starters...
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2010-05-07T08:52:10Z
2010-05-07T08:52:10Z
Staff
2010-05-07T08:52:10Z
Navigating the Web 2.0 Universe
Staff
http://www.DrLaura.com/b/Navigating-the-Web-2.0-Universe
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2010-05-07T08:52:10Z
2010-05-07T08:52:10Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Navigating the Web 2.0 Universe
By Cliff Ennico
www.creators.com
"I am looking to market a consulting business, and am very interested in the various 'social networking' websites such as Facebook and MySpace as potential marketing vehicles. I confess, though, that I'm a bit confused by the sheer multiplicity of sites that are available now - there are at least 10 social networking sites that might be a marketing venue for my business. How do I choose between them, or do I simply sign up for all of them in an effort to reach the maximum number of people?"
If you are serious about marketing your business on the Web, there are three New Year's resolutions you need to make right now:
(1)set up a "profile" page on at least one of the major Web 2.0 social networking websites;
(2)mention your "profile" page everywhere else you have a presence online (such as your Website and "blogs") and offline (such as your business card, office stationery and telephone answering message); and
(3)resist the temptation to be "everywhere, all at once" by spreading yourself too thin.
At first glance, resolution # 3 seems to contradict the first two resolutions, but it really doesn't. There are four things you need to know about social networking websites:
(1)certain sites attract certain types of people - while many people have multiple "profile" pages, certain sites develop stronger followings with some people than others, and you want to focus your marketing efforts where the people you want to reach "hang out";
(2)social networking sites can be "time vampires" - you will be creating profiles, taking part in discussions and responding to messages virtually every day; and
(3)social networking sites are interactive - you are not in control of your marketing message on any of them - people will comment on your products and services, and some people are more interested in expressing their own opinions than in helping you build your business.
(4)social networking sites overlap a lot -- hardly a day goes by in my office without receiving an e-mail from a Facebook "friend" who wants me to join his profile page on LinkedIn, and vice versa. A lot of the people you are reaching on Website A are the same people you are already reaching on Website B.
So how you do decide where to "plant your flag" in the Web 2.0 universe? I've looked at most of the major sites, and here is my totally unscientific, personal, opinionated view of the major ones:
MySpace - this is where the kids are hanging out. Great for rock bands and others who are targeting the "tween and teen" markets, and for celebrities, authors, sports stars and others who are looking to build a mass fan base (good book: "MySpace Marketing" by Sean Percival). This is where I want to be if I want to build readership for this column.
Facebook - great for personal networking with family and friends. If you have an extended family and want to keep them all up to date on your latest adventures, this is the place to be. Several friends of mine used their Facebook profiles to send out holiday messages this year (bad news for Hallmark) (good book: "Facebook Marketing" by Steven Holzner).
LinkedIn.com - great for businesspeople and professionals who are interested in "serious" networking. This is where I want a profile tied to my law and business development consulting practice (a new e-book from marketing expert Jan Wallen, "LinkedIn in Seven Days or Less", available at
janwallen.com/works.htm
).
Plaxo.com - originally an online address book and calendar manager for people who use Microsoft Outlook (and still probably the strongest product in that area), Plaxo has developed a Web 2.0 site (called "Plaxo Pulse") with a look and feel very similar to Facebook but with a little stronger focus on business networking (no books yet on Plaxo, sorry).
Squidoo.com - great for subject matter "experts" who want to create interactive wikis (called "lenses") on specific topics of interest to build "niche interest" communities (good e-book: "Do You Squidoo?" by Joel Comm).
Twitter.com - a "microblogging" site where you can post short announcements (called "tweets") of things you are doing elsewhere on the Web (good book: "Twitter Means Business" by Julio Ojeda-Zapata).
Specialty sites - "special interest" Web 2.0 sites are exploding right now - such as feng.com for financial services executives - and may help you build followings within tightly targeted niches.
If you must - absolutely MUST - be on multiple social networking platforms, be sure to use a "social networking automation" product - such as friendfeed.com or secondbrain.com -- to automatically update all your profiles without having to log into each platform. Also, use "Google Alert" or a similar product to notify you of new postings on your profiles, so you can respond promptly to someone who's broadcasting to all your "friends" what an idiot he/she thinks you are.
Cliff Ennico (
cennico@legalcareer.com
)is a syndicated columnist, author and former host of the PBS televisionseries 'Money Hunt'. This column is no substitute for legal, tax orfinancial advice, which can be furnished only by a qualifiedprofessional licensed in your state. To find out more about CliffEnnico and other Creators Syndicate writers and cartoonists, visit ourWeb page at
www.creators.com
.COPYRIGHT 2009 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE,INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:52:10Z
Building An Internet "Octopus"
Staff
http://www.DrLaura.com/b/Building-An-Internet-Octopus
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2010-05-07T08:52:08Z
2010-05-07T08:52:08Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Building An Internet"Octopus"
By Cliff Ennico
www.creators.com
#147;Your recent column on 'The Changing World of eBay' got me thinking alot about building an e-commerce presence for my small business. Do youhave any thoughts on the right way to do that in a rapidly changingonline environment?"
Consider the octopus.
The octopus basically has two parts: a combination head and digestivesystem, and a bunch of tentacles that spread out from the head into thesurrounding water, enabling the octopus to swim and catch prey (okay,okay, I've been watching too many nature documentaries on cable TV, butyou get the general idea . . . ).
The tentacles of the octopus contain numerous "suckers", which catchprey in the open water and then "feed" the prey to the mouth of theoctopus, which then digests the prey.
That system of operation is exactly what you should strive to buildwhen you create an e-commerce empire on the Internet.
The "head" of your online octopus is . . . your business Website.
Five years ago, I would have conceded that there are at least some verysmall, local businesses that don't need a Website to be successful. Notanymore. These days, every small business, whether it does businessprimarily online or offline, needs to have its own Website.
Why? For two reasons.
First, people these days expect that you have one if you are inbusiness. When someone hands me a business card at a speakingengagement or networking event, the first thing I look for is a Webaddress so that I can find out more about the person (assuming ofcourse that I want to).
If I don't see a Web address, or if it's written by hand on the back ofthe business card (never do this, by the way - it sends the signal thatyou're too cheap to send the right marketing message to yourcustomers), the person instantly loses credibility in my eyes.
Second, and more importantly, there is one place . . . and only one . .. on the entire Internet where you can sell merchandise and keep 100%of the proceeds of each sale.
That place is your Website.
Whenever you list merchandise for sale on a platform other than yourown Website (such as eBay, Yahoo! or Amazon), you have to pay fees forthe privilege - either a listing fee, a "success" fee (a percentage ofthe sale amount or winning bid), or some combination of the two.
When you sell stuff from your Website, you don't have to pay nothing tonobody. So, here's a "pop quiz" question: when selling merchandiseonline, where do you want the bulk of your sales to come from? Why,your Website, of course!
The "head" of the octopus is your Website, but you need "tentacles" aswell. Your merchandise listings on eBay, Yahoo!, Amazon, or Craigslist,your online "blogs" and your profile pages on the major Web 2.0networking sites (MySpace, Facebook, LinkedIn, Plaxo and Squidoo) areall examples of the "tentacles" you will put out in the e-commerceocean once you've established your own Website.
What exactly do tentacles do? Well, at least according to the naturedocumentaries I see on TV (my experience with real "octopi" doesn't gomuch further than fried calamari), the tentacles on an octopus servetwo basic functions:
they use their sticky #147;suction cups#148; (or whatever they#146;re called)to trap and ensnare prey that may be swimming by; and
once having caught prey, the tentacles use their #147;suckers#148; topass the prey backwards towards the mouth of the octopus, located inthe head, where the prey is consumed and digested.
Your e-commerce "tentacles" serve much the same goal. Your presence oneBay, Yahoo!, Amazon and other high-traffic e-commerce sites serves toattract customers surfing the Web who would otherwise not find you in amillion years. People are searching for things on the Web every day,but only rarely will people be searching specifically for your Website,at least until you are so well established that your business is a"household word" (and I hope that happens someday).
Once customers buy a few things from one of your "tentacles" and become"hooked" on your merchandise or services (or "sucked in," since we'retalking octopus), they will want more. That's when your "tentacles"should be feeding them to the "mouth" of your e-commerce empire: YourWebsite. Where you can sell lots of stuff to these customers and keep100% of what you make.
Now, sometimes it won't be easy for you to build an Internet octopusfor your business. Some online platforms, particularly eBay, have rulesrestricting your ability to post your Website URL on your listings orotherwise drive traffic off of their site. But with a littlecreativity, some online research and professional advice, you can findeffective ways to assemble your Internet octopus so that the maximumWeb traffic occurs in the places where it really impacts your bottomline the most.
Cliff Ennico (
cennico@legalcareer.com
)is a syndicated columnist, author and former host of the PBS televisionseries 'Money Hunt'. This column is no substitute for legal, tax orfinancial advice, which can be furnished only by a qualifiedprofessional licensed in your state. To find out more about CliffEnnico and other Creators Syndicate writers and cartoonists, visit ourWeb page at
www.creators.com
.COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE,INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:52:08Z
Reinventing Yourself For The Tough Times Ahead
Staff
http://www.DrLaura.com/b/Reinventing-Yourself-For-The-Tough-Times-Ahead
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2010-05-07T08:52:06Z
2010-05-07T08:52:06Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Reinventing Yourself For The Tough Times Ahead
By Cliff Ennico
www.creators.com
"Having just read your recent columns on career management, I was wondering if you had a suggestion as to what courses I could take to make me more employable. I am a 65 year old woman who retired as a Registered Nurse due to health concerns, but must go back into the workplace due to financial constraints. I am computer literate, bright (Mensa member) and articulate My finances and time are limited. I have an Associate's degree in Nursing and a Bachelor of Science degree in Organizational Management."
I'm getting a lot of e-mails like this one lately, which should come as no surprise to anyone. Technically this isn't a column about career management, but what this reader wants to do is reinvent herself in a new career, which is what this column ultimately is all about.
First of all, unless you have surrendered your state license to practice nursing, there is no reason why you can't continue as a nurse part-time. While at the age of 65 you probably no longer want to work the grueling hours that a hospital or private clinic would demand of its nursing staff, there are plenty of other options for nurses that would give you some "flex time" to pursue other interests and perhaps "branch out" into other areas.
For example, you could join a local "private duty" nursing agency, such as The Greenwich Nursing and Health Care Registry in Greenwich, Connecticut (www.bluebooks.com/pages/greenwichregistry). These folks provide nurses on an hourly or temporary basis to elderly people in the community. You provide the requested services in the customers' homes, the customers pay the agency for your services, and the agency pays you #150; just like any other temporary employment agency.
Far from being a disadvantage, your age may well be a benefit in this field, as many older people prefer dealing with a private duty nurse they consider a "peer". To find private duty nursing agencies in your area, go to
www.privatedutyhomecare.org
or search "private duty nursing agency [your state]" on the Web.
If joining an agency isn't practical, you can set up your own private duty nursing business out of your own home. "Private Duty Today" (
www.privatedutytoday.com
) is a free biweekly e-mail newsletter offering tips and resources for home health care entrepreneurs. Contact your state licensing department to make sure your license is broad enough to cover home health care services, and contact your professional liability insurer as you may need additional coverage to operate your own business.
Another possibility is to reposition yourself as a "patient advocate" #150; someone who interfaces on behalf of the patient with doctors, hospital staff and administrators to ensure that medical treatments are being performed correctly and efficiently, costly and life-threatening mistakes are avoided, and bureaucratic "red tape" is kept to a minimum. Many patient advocates are former nurses and hospital staffers who know what really happens "behind the scenes" in our health care system. For more information, check out the Patient Advocate Foundation's website (
www.patientadvocate.org
).
One warning #150; your clients often will be hiring you because they aren't strong enough or persistent enough to get the results they need, and many doctors and hospital staffers will not view your role kindly. You will need to be persuasive, thick-skinned, and sometimes abrasive to be successful in this field.
If you want nothing more to do with nursing, then you will have to reinvent yourself. Generally, the easiest way to do this is to take what you know best (in this case, nursing) and "widen the lens" to a related but much broader field (for example, "health care administration"). Your degree in Organizational Management is especially helpful here, as it sends a signal to people that you understand the business of health care.
With an aging population that will place increasing demands on existing health care services, and an incoming Administration in Washington that wants to expand health care coverage to all Americans while at the same time controlling health care costs, there will be plenty of career opportunities over the next several years for "health care administration professionals".
Here are some ideas. Consider becoming:
A management consultant specializing in hospitals, clinics and health care facilities #150; you help these folks figure out the most economical way for them to use their staff resources, and charge by the hour;
A medical billing expert for local doctors and health care providers #150; you make sure these folks are billing the insurance companies properly, and mediate billing disputes with the insurers so the providers can focus on what they do best;
A business/career coach for nurses and other health care professionals.
One more thing: while it is certainly an achievement to be proud of, I would not mention your "Mensa" membership on your resume. When looking to reinvent yourself in a new career, your experience, people skills and "emotional intelligence" count for far more than your ability to solve Sudoku puzzles in five minutes.
Cliff Ennico (
cennico@legalcareer.com
)is a syndicated columnist, author and former host of the PBS televisionseries 'Money Hunt'. This column is no substitute for legal, tax orfinancial advice, which can be furnished only by a qualifiedprofessional licensed in your state. To find out more about CliffEnnico and other Creators Syndicate writers and cartoonists, visit ourWeb page at
www.creators.com
.COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE,INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:52:06Z
Six Ways To Make Your Marketing Count
Staff
http://www.DrLaura.com/b/Six-Ways-To-Make-Your-Marketing-Count
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2010-05-07T08:52:04Z
2010-05-07T08:52:04Z
Staff
2010-05-07T08:52:04Z
A Message From Your Brok . . . er . . . Financial Advisor
Staff
http://www.DrLaura.com/b/A-Message-From-Your-Brok-.-.-.-er-.-.-.-Financial-Advisor
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2010-05-07T08:52:04Z
2010-05-07T08:52:04Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>A Message From YourBrok . . . er . . . Financial Advisor
By Cliff Ennico
www.creators.com
Hi, all.nbsp; I just returned from an investment conference where forfour days from 9 AM to 3PM (when I usually manage your accounts), Ilistened to numerous industry experts, economists, strategists, moneymanagers and analysts from our company, its affiliated investmentfunds, and a couple of "screamers" from CNN, who discussed the currenteconomic environment.nbsp; Even though these were the same people wholoaded us up with mortgage-backed securities and forced us to be soldoff to The First National Bank of Southern North Carolina earlier thisyear, we have every reason to believe these are the right people tohelp us through some challenging times, especially now that they're nolonger worried about their jobs and can focus 100% on the task ofrebuilding our company with your money.
The consensus was the same:nbsp; no one had expected or experienced atime such as what we are now going through.nbsp; As for how long itwill last, the experts were also in agreement:nbsp; "sure beats theHeck out of us".nbsp; Having gotten that out of the way, the paneliststhen told us (and you) what you should do in these difficult times.
In his opening address (titled "Oopsie!nbsp; Didn't See That OneComing"), our president O. Leo Leahy said:nbsp; "I know a lot ofpeople say that we're stockbrokers, and that the primary duty of astockbroker is to get their clients into the market when it's down, andget them out of the market when it's up.nbsp; Which means that you allshould have put your client's funds 100% in cash in the first quarterof 2008.nbsp; But we are NOT stockbrokers.nbsp; We leave thatbusiness to the 'day traders' and that's what you need to tell yourclients right now.nbsp; What we are . . . are . . . FINANCIALADVISORS, which means we are bound by the higher laws of finance tofocus on the longer term, no matter how much the World may be crashingaround our ears today!"
Virtually all experts felt that the markets bottomed on October 10thand that we are going through a "retesting" of that bottom.nbsp;"You've seen bottoms before," said Leahy, "and you're looking at onenow.nbsp; We may see several more bottoms before we see the realbottom.nbsp; But let me assure you, ladies and gentlemen, that whenthe Dow Jones Industrial Average hits zero, we are absolutely certainthat will be the last bottom, and the market will have nowhere to gobut up!"
The experts also were optimistic about the nation's politicalfuture.nbsp; "Now that the 2008 election is over, the 2012Presidential race is under way, and it becomes ever more likely we willbe a one party state within the next few years," said Leahy, "we willNEVER, EVER AGAIN be plagued by market-disrupting election yearuncertainties, and will be able to focus our full attention on growingassets for our Government to take over. That way, the Chinese will besure to buy our assets in 20 years and 'the World will be as one'."
So what does an investor do now?nbsp; The experts were unanimous thatwhat you should do now is to "stay the course" and keep putting whatlittle money you have into the stock market.nbsp; They gave fourreasons for this:
any roller coaster rider knows the ride down is a lot morethrilling than the ride up;
you will make it easier for the "day traders" to get THEIR moneyout before the market tanks;
the market is bound to go up again someday, and you will recoupyour losses (assuming, of course, you have some cash to buy stocks withand can handle a 50% capital gains tax); and
hey, if you put everything in cash there won't be anything for usto do, and nothing for the experts to talk about.
You should also remember if your account balance falls below ourinvestment "minimum" we will have to terminate our relationship and youwill be on your own.
Look at it this way: if you put money into the stock market in October1930, the depths of the last big "R", and kept it invested untilOctober 2008, you would have DOUBLED your money and would be able toretire at the still young age of 112!nbsp; We have every confidenceyou will be able to do the same in this market.
So have a good week and please try not to listen to the financialentertainment networks, your barber, your manicurist or yourdoorman!nbsp; Whom would you rather believe . . . them, orprofessionals like us?
One more thing:nbsp; we are pleased to announce a new investmentproduct from The First National Bank of Southern North Carolina.nbsp;It's called a "Christmas Chanukah Kwanzaa Saturnalia Club".nbsp; Youopen an account on January 1, put in One Dollar every week, and whenthe holidays roll around you have . . . not Fifty-Two Dollars but . . .(wait for it) . . . FIFTY-THREE DOLLARS to spend on holiday cheer,thanks to the miracle of compound interest!
Please make an appointment with me to discuss this exciting new productat your convenience.nbsp; I'll be at Teller Cage # 3.
Cliff Ennico (
cennico@legalcareer.com
)is a syndicated columnist, author and former host of the PBS televisionseries 'Money Hunt'. This column is no substitute for legal, tax orfinancial advice, which can be furnished only by a qualifiedprofessional licensed in your state. To find out more about CliffEnnico and other Creators Syndicate writers and cartoonists, visit ourWeb page at
www.creators.com
.COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE,INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:52:04Z
The Changing World Of eBay
Staff
http://www.DrLaura.com/b/The-Changing-World-Of-eBay
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2010-05-07T08:52:02Z
2010-05-07T08:52:02Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The Changing World OfeBay
By Cliff Ennico
www.creators.com
"I do a lot of public speaking to promote my small business. Most of myspeaking is for local organizations; I don't charge them a fee, andthere's no contract involved. But lately I've been contacted by someevent planners to speak at trade shows around the country, and theircontracts are several pages long! What are some of the things I shouldbe looking for in these contracts? Do I need an attorney to look ateach of these when I receive them?"
It's no secret.nbsp; It's getting harder and harder to build asuccessful eBay selling business.nbsp; Not only is the competitiongreater than ever before (between 700,000 and 800,000 sellers in theUnited States alone), but eBay itself is making it tougher for sellersto succeed by "raising the bar" for people it will allow to sell on thesite.
To understand the changes that have rocked the eBay community in recentyears, it helps to understand the fundamental difference between"amateur" and "professional" retailers.
When eBay was first launched in the mid-1990s, it developed areputation (rightly or wrongly), as "the world's flea market".nbsp;Anyone with twenty-five cents to spend and a few spare hours to createan eBay auction listing could sell anything on eBay to anyone in theworld.nbsp; They did not have to be a "regular vendor": they did nothave to follow rules of business etiquette, they did not have to keepcareful books and records, they did not have to be disciplined abouthow they conducted their businesses or how they interacted withcustomers.nbsp;
That was the great charm of eBay in the "good old days" of the late1990s.nbsp; It was more than just "online commerce".nbsp; It was acommunity of buyers and sellers interacting with each other on thesite, and you never knew what would happen when you bid on somethingfor sale there.nbsp; You might make a friend for life.nbsp; You mightmeet a world authority on a certain type of antique orcollectible.nbsp; You might even meet your future spouse or lifepartner on eBay.
Often you were buying from people who knew less about their merchandisethan you did, and you picked up some amazing bargains that way because"these people on eBay don't know what they've got".
But eBay's charm was also its greatest handicap.nbsp; Many times whenbidding on eBay you found yourself dealing with the seller from Hell -somebody who was trying to pass off fake antiques as genuine, somebodywho was ripping you off on shipping and handling fees, somebody whoshipped you an article different than the one you ordered (and wouldn'tgive you your money back), or somebody whose sole goal in life was tosteal your personal identity online.
eBay, in short, developed a reputation as the "Wild West" of onlinecommerce - a place where anything could happen, and often did.
In recent years, eBay has taken some dramatic steps to move away fromits "Wild West" image and become more respectable as an online commercevenue for serious sellers and buyers - steps that, in some cases, havealienated large sectors of their selling community.nbsp; Among some ofthe more recent changes:
the development of DetailedSeller Ratings (or DSRs) that enable buyersto rate sellers on a variety of different aspects of the saleexperience (for example, shipping speed, quality of merchandise,communications) rather than an "overall" rating;
eliminating sellers' ability to leave "negative feedback" onbuyers,while allowing buyers greater leverage to leave "negative feedback" onsellers;
requiring eBay sellers to use an "online payment system" such asPayPalfor all transactions, and prohibiting them from accepting checks, moneyorders and other paper-based forms of payment; and
eliminating certain benefits (such as eBay's coveted"PowerSeller"status) for sellers whose DSRs fall below certain percentage levels.
Many sellers complain that, because of these changes, "eBay isn't asmuch fun as it used to be," and numerous newspaper and magazinearticles and online "blogs" have accused eBay of trying to eliminate"Mom and Pop" sellers from the site in favor of large corporateretailers.
But the truth, as always, is a bit more complex than that.nbsp; eBayhas, and probably always will, welcome the small "Mom and Pop" retaileron the site, especially in the "antiques and collectibles" andused/secondhand merchandise categories where eBay still reigns supremein the e-commerce world.nbsp; Because the site is so easy to use, andbecause of the extensive support sellers receive on the site, eBay willprobably for some time continue to be the first place small businessesgo to "cut their teeth" when venturing into e-commerce.
What will clearly no longer be tolerated on eBay, however, are"amateur" sellers - people who don't run their businesses in aprofessional, customer-friendly and, well, "businesslike" manner.
You can be small and thrive on eBay, but from now on, you gotta be good.
Cliff Ennico (
cennico@legalcareer.com
)is a syndicated columnist, author and former host of the PBS televisionseries 'Money Hunt'. This column is no substitute for legal, tax orfinancial advice, which can be furnished only by a qualifiedprofessional licensed in your state. To find out more about CliffEnnico and other Creators Syndicate writers and cartoonists, visit ourWeb page at
www.creators.com
.COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE,INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:52:02Z
Two New Web Based Services That You Should Know About
Staff
http://www.DrLaura.com/b/Two-New-Web-Based-Services-That-You-Should-Know-About
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2010-05-07T08:52:00Z
2010-05-07T08:52:00Z
Staff
2010-05-07T08:52:00Z
Some Legal and Tax Tips For Professional Speakers
Staff
http://www.DrLaura.com/b/Some-Legal-and-Tax-Tips-For-Professional-Speakers
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2010-05-07T08:52:00Z
2010-05-07T08:52:00Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Some Legal and Tax Tips For Professional Speakers
By Cliff Ennico
www.creators.com
"I do a lot of public speaking to promote my small business. Most of my speaking is for local organizations; I don't charge them a fee, and there's no contract involved. But lately I've been contacted by some event planners to speak at trade shows around the country, and their contracts are several pages long! What are some of the things I should be looking for in these contracts? Do I need an attorney to look at each of these when I receive them?"
Generally, when I look at speaking contracts, I focus on three basic questions:
"How and When Do I Get Paid?" Speaking contracts are usually clear about the amount you will be paid for speaking, but you would be amazed how many contracts are "fuzzy" about when payment is due. Most event planners will want you to submit an invoice for fees and expenses after you speak, which is fine, but if there are significant expenses involved - such as cross-country air travel - you might want to ask to have those expenses reimbursed before you board the plane. Watch out for language saying the event planner will pay you if they or their client are "satisfied with" or "have accepted" your work - that can be awfully subjective, and you don't want your payment held up on somebody's whim.
"Who Owns My Presentation?" There should be only one answer to this question: YOU should own the copyright and all other rights to your PowerPoint slides, handouts and other materials you give to attendees, and any other content you create for the event. Many speakers' contracts require you to assign your copyright to the event planner, and you should resist these provisions as much as possible. Once someone owns your copyright, they can do whatever they want with your presentation, you get nothing for it, and you can't use that same presentation anywhere else. Consider instead giving the event planner a "nonexclusive, perpetual, royalty free" license to use your content only for certain specified purposes - such as posting the content for a limited time on the event's Website.
"Am I Restricted From Speaking for Someone Else?" Never, ever sign a noncompete agreement for a speaking event. No event planner has the right to prohibit you from speaking for other organizations or clients. If they protest, tell them you won't agree to a noncompete unless the planner agrees to give you a minimum volume of speaking business each year while the noncompete clause is in effect.
It's a good idea to have an attorney review your first couple of speaking contracts. I would recommend you meet with the attorney and have her "educate" you on the things you need to look for to avoid getting into legal trouble with the event planners. After that, you can probably review these yourself, keeping your attorney on "speed dial" if a particular contract has language you haven't seen before.
"I am a corporate training professional who conducts programs at hotels and convention centers in my state two or three times a year. While I can limit myself to my home state, a future goal is to offer training in other locations across the country, and I understand I may be subject to income and sales taxes in other states if I conduct programs there. What's the best way to learn about the tax rules in each state where I may wish to conduct training?"
When you conduct training classes in another state, especially if the classes last for more than one day each and/or you conduct several classes in the state each year, you may have "nexus" with that state for tax purposes. This means you are responsible for paying income or sales taxes to the tax authority in each state where you conduct training programs.
To find out a state's "nexus" rules, find the state tax authority's Website - you can search online for "[name of state] revenue department", or go to
www.taxsites.com/state.html
for a nationwide directory of state tax Websites. Once you get to the state tax authority's Website, search for the "nexus information" page. There almost always will be one.
Each year, the Bureau of National Affairs in Washington, D.C. conducts a survey of state tax departments about their "nexus" rules and publishes the survey in book form -- for a current copy of this survey, call BNA at (800) 372 1033 and ask for Item STSV01. But be forewarned: it will set you back $185.
As a last resort, you can always call the state's tax department, ask to speak to a Revenue Examiner, and ask them flat out if your proposed activities within the state will subject you to income or sales taxes. The good news is that they're usually fairly friendly, and will tell you exactly what to do. The bad news is that they will almost always find you have "nexus" in the state and will have to pay taxes.
Cliff Ennico (
cennico@legalcareer.com
)is a syndicated columnist, author and former host of the PBS televisionseries 'Money Hunt'. This column is no substitute for legal, tax orfinancial advice, which can be furnished only by a qualifiedprofessional licensed in your state. To find out more about CliffEnnico and other Creators Syndicate writers and cartoonists, visit ourWeb page at
www.creators.com
.COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE,INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:52:00Z
Growing Your Business In Challenging Times
Staff
http://www.DrLaura.com/b/Growing-Your-Business-In-Challenging-Times
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2010-05-07T08:51:58Z
2010-05-07T08:51:58Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Growing Your Business In Challenging Times
By Cliff Ennico
www.creators.com
"I have a small service business. I was doing okay until recently, but in the past several months a lot of my business has dried up and I#146;m struggling to stay afloat. Do you have any tips on how to run a service business in difficult times?"
When you run your own business, there's never anything BUT difficult times. The rules of good management apply no matter what the economy's doing at a particular moment. Having said that, though, recent events in the financial world have shaken a lot of people#146;s confidence, so it's a good idea to review the basics.
"Talk to Me, So You Can See, What's Going On . . . " With apologies to the late Marvin Gaye, a sudden drop in business usually means you have a marketing problem. Your customers have had a change of heart about you and what you're doing, and you've got to find out what's happening. Sitting around the office thinking about the problem won't solve it. You've got to get out into the marketplace and start talking to your customers. Ask them point blank why they're no longer calling. Is it something you're doing or not doing for them? Are their needs changing? Is there a new competitor in town who#146;s offering them better prices, better service, or a more convenient location?
Frankly, you should be doing this ALL the time, but especially now you need to worship your customers. Offer them a little something for participating in a telephone survey and they'll probably give you an earful. Oh, and if they're telling you they want something new and different from your business, say "yes" and start offering it . . . whatever it may be.
"Is There Anybody Alive Out There?" With apologies to Bruce Springsteen, changing times create new marketing opportunities as well as threats. For each customer who's drifting away from you, there are others who are being abandoned by other service providers. Take a good, long look at your community #150; what's NOT being done that people are willing to pay good money for? If two or more customers ask for Service X and you are offering only Services Y and Z, maybe Service X needs to be added to the mix. Chances are, a lot more people are looking for Service X, and it's good to be the only one in town (or in your industry) doing it.
Maximize Revenue, Minimize Cost. These are the two cardinal rules of growing a business in tough times (or indeed, any other time). Here are the key questions you should be asking:
Are your prices high enough? Since your customer base is declining, you will have to squeeze more cash out of fewer customers. Your gut instinct is to cut prices in difficult times, but if inflation is pushing everybody's costs higher, now may be an excellent time to actually RAISE your prices because people are more resigned to it.
Are there other complementary products or services you can sell your regular customers? If you are a rare coin dealer, you should not be selling just the coins themselves but also the supplies that coin collectors need.
Are there new markets or uses for your products and services? Consider selling internationally via the Web #150; there may be huge markets in Brazil for stuff you can't give away in the United States. Perhaps you can reach out to an ethnic group in town that's not being adequately served by your business (three little words that will dramatically expand your service business #150; "se habla espanol"). Perhaps there are new uses for your products that people aren't aware of. In good times, a bicycle is a fun way to exercise. In tough times, it might be a primary means of transportation.
Are you spending too much money on anything? In tough times you have to be downright ruthless about cutting expenses and living on "a drop of water". Do you really need a second employee working on Saturdays? Can you get another year out of your old truck? Most of us don't spend wildly on high-priced items, but the little expenses -- $10 here, $20 there #150; really add up. Cut your spending by even $20 each day, and you will save $140 each week, and $7,280 each year.
At all times, there are two steps to success in any service business:
(1)Find a dirty job that has to get done but that no one likes to do; and
(2)Charge a premium price for doing it.
People will always pay good money to have work done if they are too nervous, time-starved or nauseated to do it themselves. In tough times people are more motivated to do mildly objectionable things themselves, but they will still outsource the really scary, distasteful jobs. Be prepared #150; and willing #150; to tackle some of the really nasty stuff people want done, especially if your competitors are too squeamish to do it.
You won't love it, you might not smell too great, but you will survive.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and former host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:58Z
All You Need Is...(It Ain't Love)
Staff
http://www.DrLaura.com/b/All-You-Need-Is...It-Aint-Love
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2010-05-07T08:51:56Z
2010-05-07T08:51:56Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>All You Need Is...(It Ain't Love)
By Cliff Ennico
www.creators.com
"Cliff, we love your column, and we would love to hear your reaction to the Wall Street shenanigans of the past several weeks. Do you have any special wisdom on how small businesses can survive the coming, almost certain, financial storm?"
This is a column of practical advice for business owners, and I generally try to avoid political and "macroeconomic" topics. It's not that I'm squeamish, or afraid to take a stand on an issue #150; I actually have very strong opinions about what#146;s happening in the business and financial world right now. It's just that this column is not the place for them. There are many, many places - both online and off -- where you can get information and opinion on this topic, and I doubt I would have much to add to the thousands of pundits, commentators, and "citizen journalists" who are weighing in with their opinions.
Having said that . . .
I do strongly believe there is one thing business owners need to have in order to survive in these unsettled times #150; something that has been sadly lacking in the business world the past few decades.
What is that something? It's not cash. And it#146;s not love or passion for what you do.
It's discipline. Discipline and self-restraint, pure and simple. The ability to say "no" to a deal that doesn't make sense when everybody else is saying "yes". The ability to set standards for who you will do business with (and who you won't) and sticking to them. The ability to set a budget for yourself and stay within it, even if it means making sacrifices (remember when people actually made personal sacrifices for things?) in other areas of your life.
The last 50 or so years have been a great time to be alive in America. Three whole generations of Americans have grown up thinking that nothing bad ever happens here. Wars happen, but they're always on the other side of the world #150; just wave a few protest signs in the air and even those go away. Recessions happen, but they're short and shallow and the economy always bounces back quickly. Poverty and starvation happen, but only to people in developing countries. Ten years ago someone actually wrote a book called "The End of History", arguing that historical cycles of good and bad economic times are gone for good (or can be easily managed) due to our technological brilliance and intellectual flexibility.
In a word, "oopsie".
Just as Wendell Phillips once said "eternal vigilance is the price of liberty", eternal discipline is the price of a free market economy. Just because the law permits you to do something doesn#146;t mean it's the right thing to do, or that you should do it #150; even if "everybody else is doing it". Your parents didn't buy that argument when you were a teenager, and neither should you when running your business. Thinking about bad times when times are good is very difficult to do #150; it's a little bit like negotiating the divorce terms right after someone has accepted your proposal of marriage #150; but it has to be done. If you wait until the bad times to discipline yourself, you may not have to time to correct the problems and weaknesses that expose you to disaster.
Back around 400 B.C. a Greek guy named Aesop wrote a short story about that. It's called "The Ant and the Grasshopper". You probably haven't read it since childhood. Go back and read it now. It's the best business advice you will ever get about surviving tough times.
Once you have discipline, there are two things you DON'T need.
Fear. In similar times, a famous U.S. President once said "we have nothing to fear but fear itself." He was right. When you panic, you do and say things you (and society) live to regret later. Action is the surest cure for fear. Stop worrying. Look for threats, and take action to avoid them. Look for opportunities, and take action to exploit them.
Anger. As Shakespeare said, "what's done is done; it cannot be undone." The time for anger was years ago. Being angry now is a waste of your precious time. Also, when you are angry, you do and say things you (and society) live to regret later.
We are all upset about what's happened on Wall Street. We look for someone to blame. But as Shakespeare (again) said, "the fault, dear Brutus, lies not with our stars, but with ourselves." We are all responsible for the current mess. Every last one of us. Either we were living beyond our means, or we failed to insist loudly enough that the spending-and-lending habits of those who were be curtailed. If you must be angry, be angry with yourself #150; look closely at the things you did, or did not do, that contributed even in a small way to the credit crunch.
And make a vow to yourself, and to whatever God you worship, that they will never happen again.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and former host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:56Z
They Were Networking, But What Were They Thinking?
Staff
http://www.DrLaura.com/b/They-Were-Networking,-But-What-Were-They-Thinking
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2010-05-07T08:51:54Z
2010-05-07T08:51:54Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>They Were Networking, But What Were They Thinking?
By Cliff Ennico
www.creators.com
For the past several months I have been speaking on small business legal, tax and marketing issues at business conferences and trade shows around the country. While I would be flattered to think that attendees flock to these programs for the privilege of touching the hem of my garment, I realize that their mission is primarily . . . to network with each other.
Entire books have been written about networking techniques, but it basically boils down to this. You show up someplace with 100 of your business cards. As soon as the speaker stops speaking you hand out your cards to everyone in sight. They, in turn, give you their cards. You go back home and count your cards, using the following scorecard:
50 points for the speaker's card;
25 points for a local politician's or dignitary's card;
5 points for another attendee's card if there's a chance they might become a customer;
1 point for another attendee's card if there isn't; and
Subtract 5 points for every competitor's card.
The player who dies with the most cards wins.
Now, when people try to get my card at these events, I don't mind playing the game. But the way a lot of people go about it makes me wonder what sort of idiots are out there teaching these people networking skills.
Here are some examples of how NOT to network with the speaker at a business event:
What Networker #1 Said: "Good talk, Cliff. Listen, I run a housecleaning service here in City X. Here's my card. If you know of anyone who needs their house cleaned, have them call me."
What Networker #1 (Probably) Was Thinking: "This is a really important guy. If he says I'm great, people will listen to him, and I will get business."
What I Was Thinking: "He forgot to read my biography. I live on the opposite coast from City X. I don't know a soul here. Even if I did, am I going to tell them about this great housecleaner I met at a local business event that they should use because their house is really filthy?"
What Networker #2 Said: "This was the most amazing talk I've ever heard in my life. Wow, you really got to me in a way that no other speaker ever has. Do you think you can spare me some advice about how I can achieve a better search engine ranking on the Internet?"
What Networker #2 (Probably) Was Thinking: "You can't go wrong with flattery #150; these speakers all have big egos, so it's best to lay it on thick."
What I Was Thinking: "What a brown-noser! I'm surprised he didn't succeed in corporate America. And he didn't even listen to my talk #150; I spent over half an hour talking about search engine marketing! He must have been out in the hallway checking his VoiceMail messages when I was covering that. I'm not repeating my whole program for this guy #150; let him buy one of my books."
What Networker #3 Said: "The talk today was very interesting, but frankly it was way too long. The information is interesting, but what we really want to do here is network with each other. So when you do the next program could you make the speaker less of a focus?"
What Networker #3 (Probably) Was Thinking: "I gave this program an entire morning of my life, and they gave us only 15 minutes to network. Good thing I had my laptop computer with me; at least I got some work done."
What I Was Thinking: "Okay, he's candid, but he doesn't realize he's talking to the SPEAKER. He thinks I'm the event organizer. It's bad enough people don't listen, but when they don't even look to SEE who's talking . . . I really hate this person. I hope he fails. No, I hope he drops dead."
Now, for an example of the RIGHT WAY to network with a speaker:
What Networker #4 Said: "Mr. Ennico, I absolutely LOVED your talk. Listen, I'm the speaking coordinator for an organization of entrepreneurs here in City Y. We would love to have you speak for us, as I really would like our members to hear your message. We can't afford much money, but we can pay your expenses and will give you every possible chance to sell your books after your talk. Would you consider doing that?"
What Networker #4 Was (Probably) Thinking: "Look, what this guy wants is probably more speaking gigs. Let me offer him a good opportunity, with the chance to make some money, and once he's said 'yes' he'll owe me a favor so then I can ask him the question I REALLY want to ask."
What I Was Thinking: "This person gets it. When you're networking, it's not about what you want, but what the other person wants. What I want . . . is this person's card."
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and former host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:54Z
How To Sell Anything To Anybody...In Three Easy Steps
Staff
http://www.DrLaura.com/b/How-To-Sell-Anything-To-Anybody...In-Three-Easy-Steps
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2010-05-07T08:51:52Z
2010-05-07T08:51:52Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>How To Sell Anything To Anybody...
In Three Easy Steps
By Cliff Ennico
www.creators.com
"I've been running a business the past couple of years. I do okay with it, but I know what my biggest problem is, and it's me. I just can't sell. I can't look somebody straight in the eye and tell them he needs something when I know he doesn't. I was taught as a kid not to be pushy, and it's hard to let go of that. Do you have any suggestions on how I can sell without lying, being unethical, or feeling sleazy about it?"
Over the last three decades of my life I have worked with 15,000 to 20,000 business owners around the country. When you work with that many, you see patterns -in the ones that make it, and in the ones that crash and burn.
Let me tell you something: all of the successful business owners I've worked with - every last man and woman - are good salespeople.
Being able to market and sell your products and services is the key - and I mean THE key - to success when you run your own business. If you do not know how to sell, if you do not feel comfortable selling - you will fail. It's that simple.
Here is a proven, time tested, three-step method by which you can sell just about anything to just about anyone and feel good about yourself afterwards.
Step # 1: Get Your Customer Talking. The biggest mistake salespeople make is to start talking about what they've got before the customer has told them what they're looking for. That's not selling, that's "cold calling" - it's a waste of your time, it's an insult to your customer, and yes, it IS sleazy.
When beginning a salespitch, don't talk. Ask questions. Get the customer talking.
And not just about anything. Get him to talk about his "fears" and "passions": what keeps him awake at nights, and what gets him excited (or "turns him on"). Why? Because - dirty little secret - these are the only two reasons anyone buys anything: to reduce anxiety, or to get more out of life.
Whenever we get together with family and friends, we spend most of our time talking about our fears and passions, and so do your customers. Your customer will not be offended or think you are "getting too personal" - they will be flattered, they will think you really care about them, they will like you. And they will buy from you.
Step # 2: Focus on a Fear or Passion You Can Do Something About. We all have fears and passions, but we don't feel them all the time. Before I can sell you anything, I have to get you to feel - in the moment, right here and now - a fear or passion I can do something about. Steer the conversation with your customer towards a fear or passion you can help them with.
Step # 3: Offer the Solution. Once you sense the customer is feeling a fear or passion you can do something about, NOW start talking - about how your products or services will reduce their fears or how exciting and great your stuff is. Paint a vivid word-portrait of how great/convenient/successful/worry-free their life would be if they only had your wonderful stuff
Need an example? Here's a salespitch I use (when wearing my "lawyer" hat) to convince a client that he needs to form a corporation:
"You know I've worked with a lot of entrepreneurs - more than 15,000 the last time I counted. If you're just like every one of them, you're probably worried about making a mistake in your business, getting sued, and losing not only your business assets but your house, your car, and your personal stuff as well. Am I right about that?
Well, you can put up a 'wall' between your personal and business assets, so that if (Heaven forbid) you are ever sued, your business assets will still be at risk - that's why you still need insurance - but your personal assets will be safe from attack because they are on the other side of the wall. One of these 'wall' things is called a corporation. Would you like to hear more?"
Would you ever in a million years say "no" to a salespitch like that?
To be an effective salesperson, you have to believe - passionately - in your products or services. If you think your stuff isn't any good, you will never be able to convince them it is. The best salespeople I know have a sense of "mission" about what they do. They are truly convinced that they are doing you the world's biggest favor by telling you about it, and that you would be CRAZY not to listen.
If you think selling is "sleazy", it's probably because you're selling the wrong stuff. Find stuff you really believe in, and convey that passion, that enthusiasm, with everyone you meet. You will become a great salesperson, and you won't even know you're doing it . . .
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and former host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:52Z
Company? What Company?
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http://www.DrLaura.com/b/Company-What-Company
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2010-05-07T08:51:51Z
2010-05-07T08:51:51Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Company? What Company?
By Cliff Ennico
www.creators.com
"I've been in business with a friend for three years now. At least I thought I was in business with him. We set up a limited liability company (LLC) for this business three years ago and hired an attorney, who sent us a whole bunch of legal documents. We signed everything in the places he indicated, and kept them in a safe place. Our accountant has filed tax returns for the LLC each of the last three years. Now we're applying for a bank loan and the bank is telling us that the LLC was never formed, even though we showed him all our paperwork. Did our attorney commit malpractice?"
In order to form an LLC, you are required to file a document (called "Articles of Organization" in most states) with your state Secretary of State's office. This document probably was included in the attorney's LLC package, and you signed it along with the rest. But either (a) the attorney neglected to tell you it had to be filed with the Secretary of State's office, or (b) more likely, you neglected to read the attorney's cover letter in which he instructed you to sign everything but then return the documents to him for processing.
In situation (a), you might have a case for malpractice against this attorney. In situation (b), you clearly don't, although the attorney should have followed up with you by phone or e-mail to remind you to return the signed documents to him.
What you need to do now is file the Articles of Organization with your state Secretary of State's office and seek a waiver of any penalties your state imposes for filing it three years late. The fact that you have been paying all state and local taxes for the past three years will help you a great deal, and they probably will be lenient. If your attorney did make a mistake here by not telling you the Articles needed to be filed, any penalties should come out of his pocket.
"We are setting up a joint venture with another company for an Internet business. The other company is listed on its Website as a Delaware corporation, but our attorney says he can't find any information, either in Delaware or in our own state, to show that the other company is actually incorporated. Complicating the picture is the fact that this company will be outsourcing some of the Website development work to an affiliated company overseas. Are we dealing with a 'fly by night' operation here?"
What this company clearly INTENDED to do was to set up a U.S. based corporation to act as a sales office for its overseas operations. This generally is a wise thing for foreign companies to do, as it limits their legal liability as well as their tax exposure here in the U.S. Delaware is a logical, and very popular, choice for this type of company.
There are a number of possible explanations for your attorney's inability to find this company on Delaware's corporations database (
http://corp.delaware.gov/onlinestatus.shtml
).
He may not have searched under the exactly correct name (these databases can be very sensitive #150; if, for example, the company name has the word "and" in it, and you type the ampersand ("") instead in the search dialog box, the name will show up as not being registered).
The company may have used one of the many "form your own corporation in Delaware for just $50" web-based services to incorporate in Delaware and then not followed up on the paperwork.
The company may have been incorporated in Delaware several years ago but then failed to file its annual "franchise tax" there (this is an annual tax for the privilege of incorporating a business) #150; if you fail to do this for a couple of years in a row, Delaware dissolves your corporation so it won#146;t show up on the corporations register.
Clearly this company will need to speak to its own attorney to find out what happened here #150; your attorney can't help them as it would be a conflict of interest for him.
What is more disturbing (at least to me) is that you can't find the company listed on your own state's corporations register. Whenever any corporation or LLC has a place of business in another state, it is required to pay taxes in that state and register with that state#146;s Secretary of State's office as a "foreign" corporation or LLC. Clearly this company hasn't done that, and could be exposed to significant legal penalties and fines for failing to do so (see my answer to the previous question).
The mere fact that it is entering into a joint venture with your company may well give it a legal "nexus" in your state, and if it hasn't already registered there, it will need to do so now. You should insist that this be done before you sign the joint venture agreement.
Cliff Ennico (
cennico@legalcareer.com
)is a syndicated columnist, author and former host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit ourWeb page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:51Z
Customizing Your Internet Marketing Program
Staff
http://www.DrLaura.com/b/Customizing-Your-Internet-Marketing-Program
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2010-05-07T08:51:49Z
2010-05-07T08:51:49Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Customizing YourInternet Marketing Program
By Cliff Ennico
www.creators.com
"I have a small business helping lawyers and accountants set up birthday greeting card programs for their customers. For a fee, they give me the names and birthdays of all their customers, and I generate a customized birthday greeting card for each customer - something unique to that customer which shows the professional really cares about them as individuals. I send the cards back to the professional, who signs and sends them out on their own stationery so the customer never knows my business was involved.
I want to advertise this business on the Internet, but I'm not sure I should be using e-mail newsletters or search engine advertising as I perceive these as very impersonal methods of advertising. I'm afraid that by using them I'll be contradicting my marketing message, which is that my customers #150; and THEIR customers #150; will receive individualized, personalized service. Is there any way I can tailor my Internet marketing program so it sends the same customized, individualized messages I try to create for my professional clients?"
You would be amazed how many times I'm asked this question: "I'd like to do more marketing online, but it seems so cold and impersonal . . . " Frequent readers of this column know that I'm no fan of e-mail as a means of communication, precisely because it is so #147;cold and impersonal", but there are lots of other options.
Blogs, for one. According to Internet marketing expert and author of
How to Win Sales Influence Spiders
, Catherine Seda (
www.catherineseda.com
), "blogging can be used effectively for one-to-one marketing. If lawyers and accountants participate in blogs, you can find ones that offer business-generating tips for these professionals.
Without promoting your business
, you can respond to relevant questions. You'll automatically get a link back to your website, so if you impress blog readers, they can find you quickly and easily." To research relevant blogs, says Seda, you can use blog engines such as IceRocket or Technorati. You should also check out the websites of professional association magazines, as many of those have blogs targeting their members.
The key is not to promote your business too aggressively, for fear you will turn your customers off, or (worse) generate negative feedback from other bloggers that will tarnish your reputation.
Seda feels that this reader would probably not benefit from a blog of her own, "unless she has other tips she can share with her target market. Otherwise, she won't have enough content to share to keep her own blog fresh and growing. Plus, will lawyers and accountants seek out her blog to ask her their burning greeting card questions? Probably not. That's why blogging on blogs that are already popular with lawyers and accountants is a great way to start."
Seda also feels this reader should not rule out e-newsletters: "If and when she has an active blog, she can create an online newsletter and simply re-publish the blog questions and answers (QAs) in her newsletter. Some people like to receive newsletters, some like to subscribe to blogs, so it's a good idea to offer both. Creating a QA newsletter based on your blog is a way to show more personalized communication with your community."
Another approach is to offer tips on your website. True, this isn't "personalized" information, says Seda, but "it is still valuable. Think about your own target audience-lawyers for example. While they offer personalized services, you still see them advertising in banner ads, e-mail, online newsletters and pay-per-click ads. Don't worry about any possible contradiction. There are many companies that offer customized services and use the Web to share their message."
A large part of the problem here, I think, is that this reader is targeting lawyers and accountants #150; possibly the most marketing-challenged people on the face of Planet Earth. A lot of these folks (and not just the "old grey heads," either) think it's unethical and immoral to talk about what you do in a way that might even remotely be perceived as "advertising". Many lawyers don't even communicate with their clients by e-mail, for Heaven's sake, much less read blog postings. Why not look for other professionals #150; more Internet friendly professionals such as stockbrokers and public relations firms #150; that could benefit from your service?
One more thing: with a business like this, you#146;re going to have to make sure your clients' (and their clients') information is kept strictly confidential. A lot of professionals will be very nervous about sharing their clients' personal information #150; such as birthdates and hobbies #150; with you, even for a purpose as benign as this. If someone steals your laptop and puts your birthday cards up on the Internet (with clients' names and links to pornography sites), you're toast.
And be careful not to make your cards too personalized: I know I would feel a little "creeped out" if my accountant sent me a birthday card with details about my personal finances that I didn't even know SHE knew . . .
Cliff Ennico (
cennico@legalcareer.com
)is a syndicated columnist, author and former host of the PBS televisionseries 'Money Hunt'. This column is no substitute for legal, tax orfinancial advice, which can be furnished only by a qualifiedprofessional licensed in your state. To find out more about CliffEnnico and other Creators Syndicate writers and cartoonists, visit ourWeb page at
www.creators.com
.COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE,INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:49Z
My Faceless Friend On Facebook
Staff
http://www.DrLaura.com/b/My-Faceless-Friend-On-Facebook
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2010-05-07T08:51:47Z
2010-05-07T08:51:47Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>My Faceless Friend On Facebook
By Cliff Ennico
www.creators.com
Joseph Blow, a man I don't know, is sitting down eating a muffin . . . right now.I know this because he told me so, along with a couple of hundred other people.I do not know Joseph Blow, but he is my friend. My friend on Facebook.
Joseph Blow is my friend because he is a friend (on Facebook) of someone else I don't know. Who is a friend of someone else I don't know. Who is a friend of someone I met briefly during a small business networking session three years ago in Poughkeepsie, New York. Someone to whom, in a moment of weakness, I gave my business card. I have never attempted to contact Joseph Blow. He probably does not know who I am. But I know he is sitting down eating a muffin . . . right now. This gives me power.
I do not know what Joseph Blow looks like, because when I look at his Facebook profile there is a picture of a cartoon character where his photo should be. A cartoon character I also do not know. Joseph Blow does not own a digital camera. Or else he is incredibly ugly. And he does not respect copyrights. Which means he cannot truly be my friend.
Janet Doe, a girl I don't know, is also my friend. She is eating bacon and scrambled eggs for breakfast . . . right now (even though it#146;s 8:00 p.m. my time). Janet likes to eat breakfast late. Or else she lives in Australia.
Because I am friends with Joseph Blow, and I am friends with Janet Doe, Janet Doe will soon be friends with Joseph Blow. Because people with friends ask all of their friend's friends to be their friends as well. But I do not think that Janet Doe and Joseph Blow will ever be friends. People who eat bacon and scrambled eggs for breakfast are a different breed than muffin people. They vote for different political parties, and have different tastes in art. This is well known.
Because Joseph Blow and Janet Doe are both my friends, it is difficult for people to tell which camp I fall into. Do I eat muffins or bacon with scrambled eggs for breakfast? Nobody knows. I'll be damned if I'm going to tell them. Let them guess.
What does this have to do with running a business? Because there are books #150; LOTS and LOTS of books #150; that say you should create profiles on Facebook and other social networking sites and collect lots and lots of friends. Because then you can sell stuff to them. Lots and lots of stuff. It is called a "Web 2.0 strategy," or, more simply, "viral marketing". If your friends buy your stuff, then their friends will buy your stuff, and their friends, and so forth. Before long everyone on Facebook will buy your stuff. And you will be very, very rich.But there are two problems with that.
First: it does not follow that because Person A likes muffins for breakfast, and Person A and Person B are friends on Facebook, that Person B likes muffins. Person B may actually hate muffins, and will hate you for trying to sell him a muffin on Facebook. Because all his true friends know he is a He-man muffin hater, and always has been.
Second: to have friends one must be a friend. If you buy my stuff on Facebook, because you are my friend, then I will have to buy your stuff on Facebook, because I am your friend. In the words of Stevie Wonder, "that's what friends are for." But I may not want your stuff. I may actually hate your stuff. But I don't want to make a friend angry, because then you will tell all my friends on Facebook that I am not a true friend. So I will buy your stuff. With the money you paid me for my stuff. And I will then sell it on eBay. Net gain: zero.
Marketing on Facebook and other social networking websites is a very tricky business. Most people are so happy to have "friends" they admit anyone who asks. If you allow people you do not know to become your social networking "friends", you open yourself (and them) up to all sorts of mischief. Friends do not "spam" friends, or offer them goods and services they don#146;t need or want.
Your "friends" on social networking websites should be only (1) people with whom you have an actual personal or business relationship, (2) people you like, respect or admire, and/or (3) people you care enough about to want to know what they eat for breakfast. If anybody else asks to be your friend, hit the "ignore" key.
Someday I will kill Joseph Blow (remove him from my "friends" list on Facebook). But not right now. He is sitting down eating a muffin . . . right now . . . and I want him to have a good last meal.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and former host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:47Z
The Only Two Ways To Raise Revenue
Staff
http://www.DrLaura.com/b/The-Only-Two-Ways-To-Raise-Revenue
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2010-05-07T08:51:45Z
2010-05-07T08:51:45Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The Only Two Ways To Raise Revenue
By Cliff Ennico
www.creators.com
"I'm an accountant in a solo practice. For some time now, I've been thinking about raising my fees. Because I spend a lot of time in my car, the rising cost of gasoline is really biting into my income more than perhaps it does for other accountants. I need to cover these increases in my operating costs, but I'm afraid that if I raise my fees to cover these costs I may lose some key clients, which would be a disaster for my practice. Is there any practical solution to this dilemma?"
Whenever you run a service business, one of the hardest things you can do is raise your prices. Even though you can demonstrate that your clients are still getting a bargain - because by operating alone you can charge significantly less than established firms in your area - they will still grumble about the increase.
Inevitably, no matter what you do, you may lose one or two clients by raising your fees. But by not raising your fees, you may be doing worse long-term damage to your practice.
There are two ways - and only two - you can increase your business revenue (if any accountants are reading this, I am referring here to "gross revenue", "gross sales" or "gross income" - the top line of the profit and loss statement). Either:
you increase your prices; and/or
you increase your sales (by developing new services, by finding new uses for your existing products and services, by expanding into new geographic markets, or by selling more aggressively to your existing customers).
Before raising your prices, you should explore every possible way to increase your sales. But if that's not possible, then you have to bite the bullet and figure out a way to increase your prices and keep customer loss to an absolute minimum.
First, never, EVER increase your fees without telling customers in advance that you are doing so. Clients hate - I mean HATE - receiving surprises in their monthly invoices. Always be sure to give your clients plenty of advance notice that a fee increase is coming. If you publish your fee schedule on your Website (always a good idea), announce the change in boldface type at the top of the fee schedule, including the effective date (for example, "NOTICE TO CLIENTS: my hourly rate will be increasing to $XXX effective August 1, 2008"). If you don't publish your fee schedule, send a "blitz" e-mail message to your clients, or put up a blog posting announcing the price hike. Always make the effective date at least one to two months in the future so that the maximum possible number of clients will see your notice before you send out invoices at the higher price.
And always mention the price increase when clients call or e-mail to order new services from you.
As for justifying the price increase, the best way is to point out that increases in your cost of doing business - such as the recent and ongoing spike in gasoline prices - make the increase necessary. While your clients won't like it, they are more likely to swallow the increase, especially since in inflationary times they are experiencing cost increases themselves and are raising their prices accordingly.
If, however, you are raising your prices by an amount significantly higher than the current inflation rate, you will have to explain why your increases are greater than the norm - for example, by pointing out that you spend more time in your car than most accountants do and are therefore more vulnerable to gas price hikes than they are. Don't wait for your client to ask - volunteer this information up front so you can "spin" the information in a positive way.
Should you offer some extra service as an inducement for clients to accept your price increase? The short answer is "yes", especially if the increase will make you less competitive, but make sure the extra service will not require you to spend more time or money because if it does, you might find yourself back in the same place you started. For example, an accountant might offer clients an extra year of warranty protection against mistakes that the IRS might discover on audit - this doesn't cost anything, and is probably something you would do for your clients anyway to keep from being sued for malpractice.
Finally, always make sure that even after the price increase, you are charging slightly less than your competitors who are in comparable situations (in this case, solo accountants in your area). That way, even if your clients are disgruntled, they will stick with you if only because they can't get a better deal elsewhere.
Yes, it's painful, but you shouldn't hesitate to raise your prices if that's the only way to maintain your profit margins and pay your (increasing) bills on time. Your customers may complain, but the alternative is for you to reduce your income. Given the choice between explaining a price increase to my customers, and explaining a reduction in income to my spouse, it's a no brainer . . .
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and former host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:45Z
Why A Web-Based Business Still Needs Merchant Accounts
Staff
http://www.DrLaura.com/b/Why-A-Web-Based-Business-Still-Needs-Merchant-Accounts
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2010-05-07T08:51:43Z
2010-05-07T08:51:43Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Why A Web-Based Business Still Needs Merchant Accounts
By Cliff Ennico
www.creators.com
"I have been running a small online service business for several years. Up to now we've accepted only checks or cash, but a number of our customers are now asking to pay by credit card. It seems to be a lot of hassle to maintain merchant accounts with all four major credit card companies (American Express, Discover, MasterCard and Visa). Would it be better for me just to open an account with
PayPal
, where my customers can pay me using their credit cards but I only have to deal with one bill each month?"
Once upon a time, if you wanted to accept credit card payments in your Web-based business, you had no choice: you had to open merchant accounts with all four of the major credit card companies, pay (in some cases) minimum monthly fees for their services, pay for a credit card "swiper" and other equipment (which, as an online business, you seldom if ever used), and reconcile four detailed statements each month.
By using an online payment service such as PayPal (
PayPal
), your customers can pay for your products and services using their credit cards, but you do not have to maintain merchant accounts with any credit card company. PayPal charges the buyer#146;s credit card, deducts its fees and deposits the balance into your PayPal account.
For all its convenience, however, PayPal hasn't completely eliminated the need to establish your own merchant accounts with credit card companies, according to Michael Guerin of Automated Merchant Processing, LLC (
www.ampyourcashflow.com
), which helps small businesses set up merchant accounts and audit them for accuracy.
"PayPal works great if you're running a sideline business and not expecting a regular volume of transactions on a consistent basis," says Guerin, pointing out that PayPal is easy to set up, extremely convenient to use, and does not charge a "gateway" or minimum monthly fee, as credit card processing companies do -- you are charged fees only when someone buys something from you using PayPal.
But Guerin points out that using only an online payment service like PayPal to process credit card transactions has its limitations, which you will encounter sooner or later as your business grows. For example:
Before allowing your customers to pay by credit card, PayPal will prompt them to at least consider using their PayPal account or bank account for payment. While PayPal legitimately wants to discourage people from incurring unnecessary credit card debt, Guerin says "the extra steps might deter some impulse buyers, who will lose heart and exit the service before making their payment".
If you are selling information products (such as e-books), you will want to automatically redirect the customer to your Website after they make their purchase, but PayPal will do that only if someone pays directly from their PayPal account rather than use their credit card.
If you are selling physical, tangible products and want to outsource your packing and shipping to an outside order fulfillment center, Guerin says, you can link to one with a merchant account, but you can#146;t do that with PayPal.
But probably the biggest shortcoming of online payment services, according to Guerin, is their inability to help you deal with credit card "chargebacks", where a customer pays for something using a credit card, and then retracts or cancels the transaction after you have shipped the item.
"In any chargeback dispute involving a credit card payment, PayPal will almost always side with the buyer, because that's what the credit card company will do, and you can't really blame them" says Guerin. "If you don't have a merchant account, you have no customer relationship with the credit card company, whereas the buyer does. Even if PayPal goes to bat for you, whose side do you think the credit card company will take in the dispute?"
Guerin advises opening several merchant accounts in addition to your PayPal account if you expect, or when you have, consistent monthly credit card transactions. Here are some of Guerin's tips for dealing with merchant accounts:
ask lots of upfront questions about the fee structure, because "it's more complicated than you might think";
know the monthly volume limits on your Visa and Mastercard accounts, and make sure you stay within them;
if customers fax you orders using a credit card authorization form, be sure to save it as it will protect you in the event of a chargeback, but "use a Magic Marker to black out the credit card number (except for the last four digits)" to prevent identity theft;
if you think a customer is going to "charge back" an order, call the credit card company, warn them it's coming, and explain the situation so they don#146;t automatically approve it; and
"if you have a brick and mortar store and you're also selling online, get two separate merchant accounts with each credit card company, and tie one to your terminal, the other to your website -- your bookkeeper will love you for that," says Guerin.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and former host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:43Z
Your Insurance Broker Can Save Your Business
Staff
http://www.DrLaura.com/b/Your-Insurance-Broker-Can-Save-Your-Business
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2010-05-07T08:51:41Z
2010-05-07T08:51:41Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Your Insurance Broker Can Save Your Business
By Cliff Ennico
www.creators.com
"I'm just starting a small service business. Even though I've formed a limited liability company (LLC) to run the business, I know that I still need insurance. But what kind? I've spoken to at least three insurance brokers about my needs, but their advice so far has been all over the place. Do you have any suggestions?"
First of all, congratulations on realizing that you still need insurance even though you form a corporation or LLC for your business. A lot of people don#146;t know that #150; they think the corporation or LLC will be enough to protect them from legal liability. But it's not true #150; even with a corporation or LLC:
you are still personally liable for negligent acts or omissions you yourself (as opposed to your business partners) commit;
you are still personally liable for any business debts and obligations (such as your lease, or a bank line of credit) that you personally guarantee; and
your business assets (as opposed to your house and other personal assets) are 100% exposed to business creditors, lawsuits and other liabilities.
Self-employed people often don't treat the insurance profession with the respect it deserves. I know some agents are extremely aggressive in their sales tactics, but sometimes it's for your own good. Let me tell you how my insurance broker saved my business . . .
When I first started my law practice, I made an appointment to speak to my insurance broker about malpractice insurance #150; I had always worked for large law firms that provided this coverage, and didn't know the first thing about it. My broker obtained quotes from several companies, met with me to compare the policies, and together we picked a coverage plan that I felt gave me the protection I needed at a price I could afford.
As I rose to leave her office, my insurance broker said "Sit back down, Cliff. We're not done yet. I'm not going to let you leave this office until you sign up for disability coverage."
A little taken aback, I responded "Hold on, I know that's fairly expensive coverage. Do I really need it? After all, I'm just practicing law #150; as long as my brain functions and I#146;m not in a coma, how can I really be disabled enough not to work?"
"Simple. You're going to spend a fair amount of time working out of your house, right?"
"Right."
"But you're not going to see clients in your home, right?"
"Right."
"So when a client wants to meet with you, what are you going to do?"
"Meet them at their office, or at a local restaurant or diner if they don't have one."
"And how are you going to get there?"
"I'm going to drive, duh . . . "
"Okay. So let's say you break your right foot."
"No problem. I can still practice law."
"But how can you drive a car without your right foot?"
She had me there. We looked over some disability policies, and I signed up for the cheapest coverage, as I still wasn#146;t convinced I needed it.
Fast forward five years #150; a sweltering hot day in July. I live in a fairly windy part of town, and all of us in the neighborhood have developed creative strategies for keeping the covers on our backyard barbecue grills from blowing away. Mine was extremely low tech #150; whenever I finished grilling I placed a 35-pound rock on top of the grill cover. That sucker wasn't going nowhere.
Now, I can't tell you how many hundreds of times I removed that rock from on top of the grill, done my grilling, cleaned the grill, and replaced the rock . . . all without incident.
Not this time.
Maybe my hands were a little greasy, maybe I was momentarily distracted, but when I grabbed the rock this time it slipped out of my hands and fell five feet . . . onto my bare right foot.
Dear readers, please trust me that you do not know the meaning of pain until you drop a 35-pound rock on your bare foot from five feet up. I was rushed to the local hospital emergency room where they repositioned all the bones and put me in a plaster cast . . . for six weeks.
Did you know you can't drive a car without your right foot? For six weeks I was totally incapacitated. Oh sure, I could work on the computer, but I couldn't meet with clients, mail documents out, or perform just about any of the clerical chores that come with a corporate law practice. That disability policy sure came in handy . . . and my broker got a huge gift basket that Christmas.
A good insurance broker is one of your key advisors when you start any kind of small business. Listen to what they have to say. And beware of falling rocks . . .
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and former host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:41Z
Do You Have What It Takes To Be A Franchisee?
Staff
http://www.DrLaura.com/b/Do-You-Have-What-It-Takes-To-Be-A-Franchisee
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2010-05-07T08:51:39Z
2010-05-07T08:51:39Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Do You Have What It Takes To Be A Franchisee?
By Cliff Ennico
www.creators.com
"I'm looking at a number of options for setting up my own business, including some franchises. I'm wondering, though, if a franchise would be a good fit for me. Is there any way of knowing if my personality would suit me for a franchise as opposed to my own startup business?"
When you buy a franchise, you buy a pre-existing business plan that has been proven successful in other (hopefully, lots of other) locations around the country. You are assigned a franchise territory, you are trained in the operation of that business, you lease retail or office space (although there are some newer franchises you can operate from a home office) within the territory, and you start a local business using the franchise's trademarks.
When you buy a franchise, you are "hedging your bets". Published data demonstrate that franchised retail and service businesses generally fail less often than their standalone counterparts. Note that it's not correct to say franchised business SUCCEED MORE OFTEN than standalone small businesses, merely that they FAIL LESS OFTEN #150; quite a different thing.
This shouldn't be surprising. When you buy a franchise, you are joining a "street gang" of entrepreneurs. A solid franchise will train you in the business, help you pick the right location, furnish you will all necessary equipment and supplies, send their employees out to help you with your "grand opening", and make available a 24-hour, seven-day-a-week toll-free hotline to answer any questions you may have. If the franchise can't answer a question, you've got all of your neighboring franchisees to tap for advice, who will be happy to return your e-mails and telephone calls because (A) they have their own franchise territories and are not competing with you, and (B) they probably have some questions of their own you can help answer.
In the words of the Broadway musical "West Side Story": "when you're a Jet, if the spit hits the fan, you've got brothers around, you're a family man . . . " (apologies to Messrs. Bernstein and Sondheim).
But that security comes with a price . . .
Unlike Burger King's customers, you cannot "have it your way" when you buy a franchise. You must follow the franchise model, often very closely, and seek the franchise's permission to deviate even slightly from that model.
Franchises are all about uniformity and consistency #150; a Burger King restaurant in Bangor, Maine offers its customers exactly the same experience that a Burger King in San Diego, California does. If even one franchisee steps out of line and does something different, it affects the entire franchise system.
Now, when you first buy a franchise, the franchise rules are no big deal. After all, you are new to the business, and you're very grateful for the detailed instructions and training the franchise is giving you.
After a year or two, however, you will know the business fairly well #150; probably as well as the franchise itself does, and perhaps a little better because you know your local market better than it does. That's when the franchise restrictions start to chafe. You may have excellent ideas for improving the franchise, but you can't execute them unless you can persuade the franchise to adopt them for the entire nationwide system. You will start wondering why you are paying 8% to 12% of your gross sales each month to a faraway company that's no longer providing you with the intense support they did in the early months.
An old college friend of mine now runs a successful home improvement franchise. I once asked him what he looks for when evaluating new franchisees, and I have never forgotten his answer: "We look for good second lieutenants, Cliff. We don't look for buck privates, because they need to be told every day how to tie their shoelaces. But we also don't look for generals who think they know more about the business than we do."
If you are the type of person who needs some structure in your worklife, and are not afraid of selling, a franchise might be a good fit for you. If the thought of selling makes you gag, do not buy a franchise #150; unless you are buying an extremely well established and recognized franchise, the franchise name won#146;t sell itself. You have to go out and build the franchise brand within your assigned territory.
On the other hand, it's possible to be too entrepreneurial for a franchise. If you are the type of person who can't follow orders and always think your judgment is better than your boss' (which, after all, may be one reason you are considering self-employment right now), you may find a franchise too restrictive and confining. Start your own business instead #150; that way, you're 100% in charge and can do whatever you want, whenever you want, without having to get anyone's permission or approval. Except, of course, for your customers . . .
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and former host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:39Z
What People Look For when they Shop Online
Staff
http://www.DrLaura.com/b/What-People-Look-For-when-they-Shop-Online
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2010-05-07T08:51:37Z
2010-05-07T08:51:37Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>What People Look For when they Shop Online
By Cliff Ennico
www.creators.com
"I've had a successful retail business for some time, and am thinking about selling online through my own website, and perhaps a Yahoo! Store. I carry a variety of merchandise, though, and there's no way I will be able to list everything on the website. What type of merchandise do people look for online, and how do I set this website up to attract the maximum amount of traffic?"
I've said it before in this column, and I'll say it again...the Internet is the future of small business retail. Two humble opinions:
You're crazy if you're not selling online #150; more and more people are doing their shopping (and living) on the Web, people expect you to have a website, and if you don't have one you risk losing credibility with your customers; and
If you're selling online, you're crazy if you don't have your own website, because it's the only place on the entire Internet where you can sell stuff and keep 100% of the money you make.
Although it's been with us for over a decade now, the Internet is still in its infancy, and we still don't know everything it's capable of. Having said that, there are four things people routinely look for when they go online, and your website should feature as many of these as possible.
People Look for Information. The Internet is the most amazing research tool ever invented. When people want to look something up quickly, they don't go to encyclopedias or libraries anymore, they go online. With a few mouse clicks, you usually can find the information you're looking for.
So, first off, your website needs to have more than just stuff to sell. It must have information that (1) people are looking for and (2) search engines will find easily. Also, given today's shortening attention spans the information must be "cool and compelling" -- it must entertain as well as inform. So write some articles, do a "blog" or record a Podcast on the stuff you sell (or just on life in general) #150; and keep putting new content up every week so the search engines keep coming back and boost your search rankings.
People Look for Stuff They Can't Find Locally. Ours is an age of instant gratification. If people can find the stuff you sell in their nearby Wal-Mart or CostCo, they won't be looking for it online. They won't want to wait a week for you to ship it to them, and they won't want to pay shipping and handling charges on top of a retail price.
Your best bet in selling online is to feature stuff that's difficult to find locally #150; people will buy from your website, because they can get their hands on the stuff quickly and will pay a premium price, plus shipping charges, for that convenience.
People Look for Great Deals on Stuff They Can Find Locally. Last year my beloved 30-year-old leather briefcase fell apart, and I needed a new one. Local stores had similar leather briefcases in the $200 to $250 range. I went on eBay and found one offered for sale from a guy in Texas who had only used it once or twice. I bid on it, and got it for $25 plus shipping. Enough said.
People Look for Like-Minded People. People these days lament the decline of "community spirit," but they're wrong. Communities are alive and well #150; they are just moving online. A lot of Web surfers are finding out they have more in common with someone halfway around the world than with their next-door neighbor. Do what you can to create a "community" of people on your website who are talking to you, and to each other, about the problems your products and services help solve. Three wonderful things will happen when you do this:
People will come back to your website over and over again to catch up with their online "friends" (and view your latest offerings);
People will view your website as a place where people with similar interests or problems hang out, and will tell their friends about it; and
You will get amazing free market research by watching their "postings", which will tell you what you're doing right with your business and what needs to change.
Selling online today is, I imagine, a lot like driving a car was back in 1915 #150; it wasn't easy, you had to know how it worked "underneath the hood", there was no support infrastructure (such as paved roads, AAA, and gas stations on every corner) to help you if you got stuck, and you spent lots of time just getting it to go from point A to point B. But everyone back then knew that the days of horses and wagons were coming to a permanent close, and that they were going to have to get comfortable with automobiles, like them or not.
The Internet is here to stay #150; get over it, and get on it.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and former host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:37Z
When You're So Far "Ahead Of The Curve" You Disappear From View
Staff
http://www.DrLaura.com/b/When-Youre-So-Far-Ahead-Of-The-Curve-You-Disappear-From-View
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2010-05-07T08:51:35Z
2010-05-07T08:51:35Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>When You're So Far quot;Ahead Of The Curvequot;
You Disappear From View
By Cliff Ennico
www.creators.com
quot;I have a small e-retailing business and want to make sure I'm attracting the most traffic I can on the Web.nbsp; I've got about a dozen books on how to market your business online, and I admit I'm pretty confused.nbsp; It seems like every month there's a new place you can advertise your business ndash; a new social networking site, 'virtual communities' like www.secondlife.com, and so forth.nbsp; Are any of these worthwhile?quot;
Marketing your business on the Web can be extremely time-consuming.nbsp; If you have a Website for your business, you have to keep creating and posting new content to it so the search engine quot;spidersquot; will find your site and launch it to the top of the natural search rankings.nbsp; If you have a blog, you have to keep the bloody thing up to date even when you're on vacation or traveling on business.
But the new social networking websites, precisely because they're so interactive and (let's face it) fun, can be an even bigger quot;time vampirequot;.nbsp; It seems like every day I'm receiving e-mails from people who want to be my quot;friendquot; online, or quot;link inquot; with me.nbsp; In many cases I have a vague recollection of actually meeting these folks once upon a time, and I feel compelled to respond to avoid alienating them.nbsp; But should I respond?nbsp; Do I really need a Facebook profile in my world?
Back in 1998 I had the most successful Internet radio program in the country.nbsp; Called quot;Succeeding in Your Businessquot; (just like this column), it was launched by a startup company that was affiliated with a national chain of small business publications.nbsp; Three or four times a year, this company flew me across the country to their studios in Malibu, California, and paid me some fairly decent cash to record a one hour weekly talk show with call-in guests, advice from experts, and the like.
I don't know how they rate Internet radio programs, but I was told that my show was the Number One ranked Internet radio program in the U.S. at that time.nbsp; I had about 350 individual, unique listeners . . . nationwide.nbsp; Six months later, the show ended because the company couldnrsquo;t attract enough advertisers to keep it going.
Now, the show was fabulous (if I do say so myself), the broadcast quality was terrific, and the company went to great lengths to advertise the program.nbsp; So what went wrong?
The answer is clear to anyone who remembers what surfing the Internet was like in 1998.nbsp; The vast majority of Internet users then used dial-up connections, and you couldn't listen to Internet radio via a dial-up connection.nbsp; Broadband quot;streamingquot; connections to the Internet (such as cable modems and DSL) were in their infancy in 1998, and only a small handful of technophiles and quot;early adoptersquot; had them.nbsp; Many of them were listening to my show, but there werenrsquo;t enough of them in 1998 to generate advertiser interest.nbsp; Today, Internet radio is a big deal, attracting millions of listeners nationwide and generating huge advertising bucks.nbsp; But it took almost 10 years for broadband Internet access to become widespread enough to make it commercially viable.
This happens a lot with emerging technologies and new media:nbsp; television was invented in the 1920s but didn't become a viable advertising medium until the 1950s; radio was invented in the 1890s but didn't become a viable medium until the 1920s.nbsp; If you commit heavily to an early stage technology and your marketplace hasn't widely accepted it, you might find that you are so quot;ahead of the curvequot; that you have disappeared from view.nbsp; As with all marketing, you go where your customers actually are, not where you want them to be.nbsp; Is your marketplace actively participating in the emerging Web 2.0 technologies?nbsp; If so are they actually buying stuff there?nbsp; If the answer to either question is quot;noquot;, that's a good sign you shouldnrsquo;t be spending much of your precious marketing time and money there . . . at least not yet.
If a presence on Web 2.0 will help your business grow, then go for it.nbsp; If it won't, or if it's too early to tell, hold off a bit and see what develops.nbsp; Spend your time and your money on the Web media that are actually reaching the marketplaces you want to target, and that are quot;pullingquot; people to buy stuff online based on hard analytic data.
And one more thing about social networking sites:nbsp; be careful who you allow to be your quot;friendsquot; online, or invite to join your online quot;networkquot;.nbsp; One thing the Web hasn't changed ndash; people still judge you by the company you keep, and if I think your Facebook friends are a bunch of weirdos, I will assume you are one as well and steer clear of you and your business, even if I like the stuff yoursquo;re got for sale.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and former host of the PBS television series 'Money Hunt'.nbsp; This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state.nbsp; To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:35Z
Personal Productivity: Dont Forget to Play
Staff
http://www.DrLaura.com/b/Personal-Productivity:-Dont-Forget-to-Play
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2010-05-07T08:51:33Z
2010-05-07T08:51:33Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Personal Productivity: Don#146;t Forget to Play
By Laura Stack, The Productivity Pro reg;
www.TheProductivityPro.com
Are you working your life away? Yes, you, the one working six days a week, 12 hours a day. Oh, so you "rest" on the seventh day? Hey, even God rested on the seventh day. You, however, put in a few more hours. When did you confuse your job with your life? Leisure, wellness, fun, and stress reduction are all an essential part of any productive routine. If you have a hard time kicking back, here are a few suggestions you should try.
Close the mental office "door" and turn off work each day. It's okay to love what you do; it's okay to have passion for your work. But you're not defined by what you do professionally. Stop being a workaholic, and learn to slow down.
Leave work on time, so you can get home and enjoy your personal life. Your personal life is at least as important as your work life. Facing this reality and learning to work with it will make you feel more successful and less stressed.
Keep your stress levels low. Lighten up and laugh at life's absurdities. Remember, the lower your stress level, the higher your appreciation of life and your ability to care for others.
Rest, relax, and play daily. Some 40 percent of people surveyed say they don't spend enough time enjoying leisure activities. The biggest obstacle to play? Ourselves. Give yourself permission to have fun.
Go on a long vacation each year. Everyone needs a change of pace and scenery and fun on a regular basis. Vacations offer the restorative power many people desperately need. Without the ability to recharge your batteries for a long period of time, you're on a slippery slope to burnout.
Create fond memories with the people you love. Don't ignore your family in favor of earning a living. Create positive experiences that stir their emotions and will therefore impact them, so they'll remember the good times.
Have a regular "family time" with loved ones. The traditions you share with your family are important ways to nurture and express your love for the important people in your life, and to create those fond memories that make you a family.
Make time for a favorite hobby. Having a hobby is a great way to re-energize. Whether you like to knit, create scrapbooks, or design clothes, do something regularly. Make time for it. Hobbies are a wonderful outlet for the creative expression missing in many people's lives.
Force yourself to slow down and stop rushing around. Time management doesn't mean packing your day like a moving van, ensuring every single minute is full. What's really at issue is not the quantity of time, but its texture.
Take care of yourself on a regular basis. This doesn't just mean going to the doctor and dentist regularly. Reconnect with your childhood, keep up an active social life, pamper yourself occasionally, and don't feel guilty about downtime.
Some people may perceive playing to be frivolous, but they're missing the point. You need occasional periods of recreation in order to avoid burn-out and to keep caring about what you're doing with your life. Slow down and smell the flowers occasionally! Play is more than something "extra" -- it's the ultimate pillar on which your life rests.
copy; 2008 Laura Stack. Laura Stack (
www.TheProductivityPro.com
) is a motivational speaker who helps busy workers Leave the Office Earlierreg; with Maximum Results in Minimum Time#153;. She is the president of The Productivity Proreg;, Inc., a time management firm specializing in productivity improvement in high-stress organizations. Since 1992, Laura has given presentations on improving output, lowering stress, and saving time in today#146;s workplaces, for companies such as Microsoft, Starbucks, and 3M. She is the bestselling author of The Exhaustion Cure (2008); Find More Time (2006); and Leave the Office Earlier (2004). Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:33Z
One More Time, Are You 100% Sure Your Company Legally Exists?
Staff
http://www.DrLaura.com/b/One-More-Time,-Are-You-100-Sure-Your-Company-Legally-Exists
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2010-05-07T08:51:32Z
2010-05-07T08:51:32Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>One More Time, Are You 100% Sure Your Company Legally Exists?
By Cliff Ennico
www.creators.com
"I just read your column in my local newspaper regarding a client who thought he and some others had formed a limited liability company (LLC) only to find out they had never filed Articles of Organization. In California at least, I believe your conclusion as to what needs to be done is wrong. The California Secretary of State's office will not allow you to file articles (or just about any other document for that matter) with a date earlier than the date you submit the document for filing. Therefore, the LLC will not be in existence in California until the articles are filed and there is no way to have the formation be effective three years earlier.
California would deem the members of the purported LLC to be partners. From a tax standpoint, the clients would probably be okay as they reported and paid taxes on their K-1 income. It would be a problem, however, from a liability perspective. Rather than having the limited liability protection that an LLC provides to its members, each of the members would be deemed partners until the LLC is officially formed and would, therefore, have unlimited liability for the debts of the deemed partnership. A lawyer who forgets to file the articles for his client would probably have exposure for malpractice that would go beyond paying any penalties out of his pocket."
I am grateful to the California attorney who sent me the above response to my column on LLCs earlier this month, and of course he is absolutely correct, not only in California but quite a few other states where the same result would apply. The problem was that the LLC filers in my earlier column were "do it yourselfers" #150; they did not hire an attorney to help them set up their LLC. Or perhaps they used one of the many "do it yourself incorporation" services available on the Web and didn't follow the instructions carefully enough. Or perhaps they hired an attorney who prepared the documents, mailed them out for signature, and didn't follow up to make sure the documents were signed and returned so that he could make the appropriate filings on behalf of the LLC. Or perhaps this was a Delaware or Nevada LLC doing business in another state, and the principals moved from one state to another without filing a Certificate of Registration in the new state.
In any case, the result is not a good one #150; if you want your LLC or corporation to protect you against liability in the event of a lawsuit, you must #150; absolutely MUST #150; make the appropriate filings with your state Secretary of State#146;s office. While a number of states may let you "cure" the failure to file after the fact by paying a hefty penalty, many don't, and the outcome would be the same as in California #150; the LLC members would have unlimited personal liability for anything the LLC did during the #147;gap period#148; before it actually filed its Articles of Organization with the state.
Here are the rules, pure and simple, when setting up a corporation or LLC:
Where the corporation or LLC will be doing business in the same state where it is incorporated, it must file paperwork with the state Secretary of State's office, get a federal tax ID number from the IRS, and register for all state and local taxes.
Where the corporation or LLC will be doing business in a different state from where it is incorporated, it must file paperwork with the state Secretary of State's office in BOTH jurisdictions (the state where it is incorporated and the state where it is actually conducting business), get a federal tax ID number from the IRS, and register for state and local taxes in both jurisdictions (unless the state of incorporation is a "convenience" jurisdiction such as Delaware or Nevada which does not require corporations or LLCs to register for state and local taxes unless they are actually doing business there).
When you have a corporation or LLC and you move from one state to another, you are required to file paperwork with the state Secretary of State's office in both the old and the new jurisdictions, and register for state and local taxes in the new jurisdiction (you don#146;t need to get a new federal tax ID number unless you have changed your entity type #150; for example, converted from a corporation into an LLC).
Miss any one of these important steps, and you're setting yourself up for some real compliance headaches down the road. If you#146;re not sure exactly how and when to do this #150; PLEASE HIRE AN ATTORNEY. He will get it right, and you can deduct his fees. If he doesn#146;t get it right, you can sue him for malpractice. If you do it yourself and louse it up, you will have nobody to blame (or sue) but yourself.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and former host of the PBS television series 'Money Hunt'.nbsp; This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state.nbsp; To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:32Z
Some Really Cool Things I Learned At eBay Live!
Staff
http://www.DrLaura.com/b/Some-Really-Cool-Things-I-Learned-At-eBay-Live!
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2010-05-07T08:51:29Z
2010-05-07T08:51:29Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Some Really Cool Things I Learned At eBay Live!
By Cliff Ennico
www.creators.com
Each year since 1995, eBay has hosted an annual convention slash trade show slash Woodstock called #147;eBay Live!#148; for people who buy and sell on the world#146;s largest Internet auction platform. The 2008 event was in Chicago last week, and I was pleased to be invited yet again to teach several classes for eBay sellers on legal and tax strategies, negotiating tactics, and complying with some of eBay#146;s more arcane selling policies.
Here are some interesting facts, new developments, and eBay selling solutions I learned about at this year#146;s show:
more than 7,000 eBay community members attended the show, with a combined #147;feedback score#148; of over 20 million transactions;
eBay CEO John Donohoe announced, among other things, that eBay#146;s popular #147;seller protection program#148; (basically an insurance policy that refunds sellers if buyers don#146;t pay or return damaged merchandise) would be extended to all eBay sellers effective immediately #150; previously this program was available only to eBay#146;s elite #147;PowerSellers#148;;
are you looking to sell beyond eBay on platforms such as Amazon, Yahoo! Stores, and Google Base, but don#146;t want to maintain separate e-commerce platforms for each of those venues? PhiConnect
(www.phiconnect.com)
has a solution that ties all of your e-commerce activities together, with prices starting at $799;
eBay sellers, through several eBay charitable giving initiatives, donated more than $100 million to charities around the world during the last 12 months;
not sure if you are owed refunds from UPS, Federal Express, or DHL when you ship your eBay items? Refund Retriever LLC
(www.refund-retriever.com)
will look at all your shipping transactions and help you obtain refunds in exchange for a percentage of whatever they#146;re able to collect;
effective immediately, eBay sellers will not be allowed to put an e-mail address or Website URL anywhere on their eBay listings or eBay Store pages #150; previously these were allowed in a seller#146;s #147;About Me#148; or #147;About My Store#148; page;
want to take killer photos of your eBay items but can#146;t find a suitable backdrop in your home or condo? Bling!-It
(www.blingit.us)
offers a software tool that will erase the backdrops on your photos and replace them with hundreds of different #147;background#148; templates;
want to get rid of stuff that#146;s lying around the house but don#146;t have the time to research a local consignment shop or deliver your stuff to them? Place a toll-free phone call to Zippi Networks Inc.
(www.zippi.com)
#150; they will find a qualified consignment shop in your area, and have them come to your house and pick everything up;
have an unusual item to sell on eBay but are afraid you will ship it in a box that#146;s not the right size? Send the item measurements to Boxaroo
(www.boxaroo.com)
, and they will find the perfect box size and ship it to you (they will even prepare the mailing labels);
SageFire Inc., an accounting solution for e-commerce merchants and franchises
(www.sagefire.com)
, has taken over responsibility for updating, maintaining and enhancing the eBay Accounting Assistant software program (basically a QuickBooks template for eBay sellers);
speaking of QuickBooks templates, Allegro Accounting Inc. (
www.web-bookkeeper.com
) offers hundreds of customized templates for eBay sellers both on its Website and on its eBay Store (eBay ID: allegro-accounting);
want to check on your eBay listings without having to log onto the eBay site each time? By downloading MyShoppingGenie (
www.mymarketinggenie.com
), you can access all of the eBay auction items you are bidding on in real time just by clicking the #147;Genie#148; icon on your personal computer#146;s #147;desktop#148; page (of course, you will still have to log onto the eBay site to place a bid);
a bill recently introduced in Congress would require PayPal to send IRS Form 1099 to account holders if their balances are more than a certain average amount each year #150; to find out what eBay#146;s Government Relations team is doing to shape that legislation and what you can do about it, go to
www.ebaymainstreet.com
;
a best-selling e-book for eBay sellers looking to broaden their horizons is Steve Lindhorst#146;s #147;Selling on #145;The River#146;: The eBay Seller#146;s Guide to Amazon.com#148;, available for $29.97 at
www.genuineseller.com
;
you can#146;t buy stocks and bonds on eBay (at least not yet), but the next best thing is buying government, municipal and corporate bonds directly from the issuers at ZionsDirect, based in Salt Lake City, Utah (
www.zionsdirect.com
) #150; discounts on ZionsDirect accounts are offered on the company#146;s eBay Store;
sadly, there will be no eBay Live! in 2009 #150; the next show is scheduled for August 2010 in Orlando, Florida, but there are rumors eBay may host smaller regional shows next year in an effort to attract more smaller and medium-sized sellers to the event. Stay tuned.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and former host of the PBS television series 'Money Hunt'.nbsp; This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state.nbsp; To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:29Z
Why Projects Fail
Staff
http://www.DrLaura.com/b/Why-Projects-Fail
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2010-05-07T08:51:28Z
2010-05-07T08:51:28Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Why Projects Fail
By Ruth Haag
www.RuthHaag.com
It seems that a capable leader, a trained staff and a goal with a #147;clear simple message#148; should make any project successful. Yet, we all know that some projects fail. Why? Could someone want them to fail?
Two-Thirds of Us Want Success
When we think about the people in our work environment, we recognize that not everyone is alike.
Some people are very brash and forceful. No matter what the topic, they instantly have an opinion. These are the people who are good at getting projects started. Their brash fearlessness makes them able to begin anything.
There are other people in our work environment who are meek. They generally don#146;t offer an opinion unless specifically asked. These are the people who are better at keeping a project going. They are good listeners and observers, and can see clear ways to lead well, once someone else has started the project.
A Third Type of Worker Revels in Failure
Now think about another type of person in your business. Whenever there is a problem causing a project to stop, this person seems to be in the middle of the problem. They proclaim how hard they have worked, but someone has let them down. Some vendor didn#146;t deliver the product on time; some co-worker was supposed to work on the project, but didn#146;t. This turmoil-oriented type of person often has more illnesses or personal problems than the rest of the office, and the office is very involved in their problems. This type of person is often very close to their superior. The supervisor often touts them as the supervisor#146;s #147;right hand.#148;
While there are people who may be too aggressive, and some who are too meek, this third type of person really likes being in the center of confusion and commotion. Their goal is not necessarily to have the project fail, but that is often the result. Their goal is simply to have confusion, so they can be a part of solving it. They most enjoy having their supervisor help them solve the problems.
I have more than one name for them, but let#146;s call them project destroyers, for now.
Removing Destroyers Solves Problems
One obvious way to make a project successful is to remove any person causing time-schedule or supply turmoil. If you cannot remove the person, another way is to reduce their role in the project. They should never be handling procurement or outside communications.
Working with Destroyers Promotes Problems
Often, when new supervisors are faced with a project destroyer, they come to the conclusion that the destroyer is working hard, but the destroyer has too much responsibility assigned to them, and this is why things are going poorly. The supervisor talks to the project destroyer, who agrees that this is the case, and the destroyer promptly requests an assistant to help them with their work.
The supervisor either decides to provide the assistant, or takes some of the responsibilities away from the destroyer, so that they can #147;concentrate on important things.#148; Neither of these actions helps; the destroyer simply creates confusion and failure within the new system. The failures are justified with phrases such as #147;they [the destroyers] are under confident; they don#146;t know what their job is; they have been assigned too much work.#148;
It is impressive to watch how hard others will work to solve the destroyer#146;s created problems. We had such a person on our staff at one time; he was responsible for our vehicle maintenance. With his hard work, each Monday morning at least one of our vehicles would fail to operate. Most often it was a dead battery. We tried to help him create a checklist for the vehicles. We instructed him to be at the office when the vehicles returned on Friday and to look them over carefully, then get them repaired on Saturday. We decreased his responsibilities so that he could focus on vehicles. We purchased cut-off switches for the batteries, so that they would not be drained over the weekend. Still, at least one vehicle would fail to run each Monday.
Finally, we got rid of the worker, and our vehicle problems were solved. Vehicles operated again. Our project destroyer had been enjoying his one-on-one time each week with the bosses, discussing the problems with the vehicles. Rest assured, other things have gone better since he left, also.
So, if you are working on a project that seems to be failing, look for the person in the center of the problems. Remove them, or contain their influence, and watch the project succeed.
About the author: Ruth Haag (
www.RuthHaag.com
) is the President and CEO of Haag Environmental Company, a hazardous waste consulting firm. Ruth is also a business management consultant. She and her partner, Bob Haag, host a weekly Internet radio show called "Manage Living" on the VoiceAmerica Business Channel (
http://www.manageliving.com/
.) Ruth has authored a four-book series for business supervisors. She offers business management courses through Ohio colleges, and she also provides private contract training. She is the publisher of Ohio's monthly newspaper for thinking people,
A Sandusky Bay Journal
. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:28Z
Yeah, But Look At The Money You Saved...
Staff
http://www.DrLaura.com/b/Yeah,-But-Look-At-The-Money-You-Saved...
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2010-05-07T08:51:26Z
2010-05-07T08:51:26Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Yeah, But Look At The Money You Saved...
By Cliff Ennico
www.creators.com
I love the radio and television ads for a certain auto insurance company where someone is telling a friend his "tale of woe" - a laundry list of horrible things that has happened to the person - and the friend, after listening sympathetically, says, "well, yes, that's too bad, but the good news is . . . I saved a ton of money on my auto insurance!"
Those ads, ladies and gentlemen, are my life. I'm getting a ton of e-mails these days from people who tried to save a few bucks in legal fees and found out - too late - what those bucks might have bought them. Here are a few:
"I registered my corporation in Nevada several years ago because I saw this great online ad telling me I could incorporate there for only $50. Last week I just got a letter from my state tax authority telling me I'm getting audited for income and sales taxes because I never registered my corporation with them. Can I just tell them to go away because I'm registered in Nevada?"
When you incorporate in another state, you still have to register your corporation in the state where you're physically located and pay taxes there. Sadly, many of the "do it yourself" incorporation Websites don't tell you that. Not only will you have to pay several years' worth of taxes, with interest and penalties, but I predict you'll be getting a similar letter very soon from your state Attorney General's office accusing you of running an illegal business in your state.
But look on the bright side . . . you saved money in legal fees!
"I formed a limited liability company (LLC) several years ago with two other partners. My accountant set up the LLC, and told us we needed a lawyer to draft our partnership agreement. We figured we didn't need one because all three of us got along pretty well. Now my two partners have moved to other states, leaving me to do all the work. Because we're listed as equal partners on our LLC tax returns, they're getting two-thirds of the profits, they're not lifting a finger to help me, and they refuse to pay me a salary. Is there anything I can do about it at this point?"
Not a whole lot. Once someone becomes your partner, the only way you legally can get rid of them is to buy them out for a fair price. Without a written agreement, though, there's nothing to force them to sell out to you. You are now their "Cinderella," and the only thing you can do is quit the business yourself and let it die - a shame since it's doing well.
But look on the bright side . . . you saved money in legal fees!
"I recently hired a sales representative. I needed an employment agreement in a hurry, so I downloaded one from a Website that specializes in legal contract forms. Well, now my business isn't doing too great and I need to downsize this employee to cut costs. In reading the contract, though, it seems I can't terminate this guy unless he commits a felony! Is there any way the law would throw out this contract and let me fire him?"
It actually works the other way - whenever there's a written contract that's more favorable to the employee than what the law allows, the courts will usually uphold the contract. While a lot of downloadable legal forms on the Web are pretty good, you still need a lawyer to look at them and "customize" the contract language.
But look on the bright side . . . you saved money in legal fees!
"I had to fire someone recently - my most senior employee. The exit interview went very well, he didn't seem upset, I offered him a generous severance package which he accepted, and he signed a generic release form that my attorney drew up years ago when I first started the company. Now, three months later, he's suing me for age discrimination! How the Devil can that happen after he signed a release?"
It can happen because under the federal Age Discrimination in Employment Act, a release of age discrimination claims must contain very specific language. For example, you have to give the terminated employee seven days to sign the release, and an additional 21 days to change his mind. A generic release doesn't have these provisions.
But look on the bright side . . . you saved money in legal fees!
Nobody likes paying legal fees. But when you run your own business, they are a necessary cost of doing business. It always costs a lot less to prevent a problem from happening than it does to "fix" the problem once it happens. If you lose your business because you were too cheap to spend an hour of your attorney's time, the fact you saved money won't be a huge consolation.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and former host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:26Z
Is This Subchapter S Corporation Really Necessary?
Staff
http://www.DrLaura.com/b/Is-This-Subchapter-S-Corporation-Really-Necessary
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2010-05-07T08:51:24Z
2010-05-07T08:51:24Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Is This Subchapter S Corporation Really Necessary?
By Cliff Ennico
www.creators.com
"I am considering starting up a small business in the near future. In talking to accountants and lawyers, I could not find anyone who would even consider setting me up as a subchapter S corporation. They are all insisting I form a limited liability company (LLC) because it is supposedly more simple and straightforward to operate. Still, I've heard from some other folks - admittedly they are not attorneys - that tell me the LLC doesn't offer the same level of protection against liability as subchapter S corporations do. Who is right here?"
Well, being a lawyer myself, I'm going to give you that most lawyerly of answers . . . "it depends."
The lawyers and accountants you spoke to may be a little behind the times. I'm actually seeing an increase in subchapter S corporations in my own law practice, and there are a number of reasons why they still make sense for a lot of small business startups. Here are several:
High Cost of Forming LLCs in Some States. In a few states, including New York and California, LLCs are more expensive to form than corporations. New York requires LLCs to file a "legal notice" (basically, a classified ad) in two newspapers of general circulation in the county in which the LLC does business for a period of six consecutive weeks. In some of the bigger cities in that state (such as New York City), the cost of publishing that notice can be hundreds or even thousands of dollars. Corporations in New York don't have to publish the "legal notice".
In California, LLCs are subject to a "minimum tax" of $800 each year, whether or not you make money, which corporations don't have to pay.
Compensating Owners. Owners of an LLC (called "members") have to pay income and self-employment taxes (FICA, FUTA and Medicare) on 100% of the LLC's profits. By forming a subchapter "S" corporation, the owners (called "shareholders") can put themselves on the corporation's payroll and withhold federal and states taxes with each paycheck, just like regular employees, which can save thousands of dollars in FICA, FUTA and Medicare taxes each year.
Perpetual Existence. An S corporation has perpetual existence. An LLC is usually formed for a limited duration, and many states still require LLC owners to include a "dissolution date" in the Articles of Organization or Certificate of Formation that gives legal birth to the LLC. There are a lot of old LLCs with "expiration dates" out there that the owners have completely forgotten about.
The Perception of Size. Although there's no reason why an LLC couldn't "go public" or otherwise become a large company, there's still a perception, especially in the investment and venture capital communities, that "LLC" means "small potatoes, Mom and Pop, not meant to grow big." Not true, but if you're looking to raise outside capital beyond your "friends and family," you need all the help you can get.
Employee Benefits. It is easier for corporations to set up health insurance programs and other employee benefits than LLCs. Also, there are some employee benefit plans, such as profit sharing plans, that are available only to corporations.
Other Tax Benefits. If your LLC acts as a contractor for other companies, they are required to send you Form 1099 at the end of the calendar year reporting how much they paid you. They don't have to send you a Form 1099 if you are a corporation.
Better Protection Against Liability (??). There is no real evidence for this, but a lot of people, including some professionals, believe that corporations provide you with more ironclad protection against legal liability than LLCs do. In these highly litigious times, with people increasingly likely to sue because the bad economy makes it likelier people will default on contracts, you need all the protection you can get. And if forming a subchapter "S" corporation discourages even a single person from suing you, it's worth the extra time and trouble of setting one up.
The disadvantages of subchapter "S" corporations are well documented - they're (usually, in most states), more expensive to form, are more of a hassle to operate, can be owned only by certain types of people, are difficult to convert to LLCs, and so forth. But the subchapter "S" corporation is far from dead, folks. When forming a new business, don't assume the LLC is the only way to go - talk to an accountant or lawyer and have her evaluate the "pros" and "cons" of both LLCs and subchapter "S" corporations with your specific business in mind so that you can make an informed decision you can live with for the long term.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and former host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:24Z
Making A Graceful Exit From A Franchise
Staff
http://www.DrLaura.com/b/Making-A-Graceful-Exit-From-A-Franchise
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2010-05-07T08:51:22Z
2010-05-07T08:51:22Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Making A Graceful Exit From A Franchise
By Cliff Ennico
www.creators.com
"I bought a franchise a little over two years ago. I've followed the franchise plan to the letter, but so far I haven't made any serious money, and have barely recouped my investment. Some other franchisees in my area are having the same difficulties, but others are doing quite well. I've decided I really want to move on to other things, but can't figure out how to get out of the franchise. Can you help?"
There are many reasons why franchises sometimes don't work out. The most common are:
the franchisee (that's you) didn't have the necessary skills to run the business, or didn't market the franchise aggressively enough because he believed the franchise trademark would do all of the work for him;
the franchise territory wasn't a good one - many franchises that start out in low-cost areas of the country "hit a wall" when they expand into areas where labor, real estate and other expenses are significantly higher; and
the franchise was poorly managed, grew too fast, or otherwise launched its model before it was truly tested.
In any case, it's highly unlikely you will get your upfront franchise fees back. Just about every franchise agreement says these are "nonrefundable". Also, many franchise agreements (including, I suspect, yours) do not allow you to terminate the franchise relationship if things turn sour.
Getting out of a franchise is a four step process - all require patience, and a fair amount of time.
Ask for Additional Training
. The fact that some franchisees in your area are doing well may point to some deficiencies in your skills. Ask the franchise to evaluate your operation, and volunteer for additional training that may help you work your way through your current difficulties.
Re-Negotiate Your Territory
. It's quite possible that your territory isn't right for this type of franchise. Have the franchise send one of its real estate executives to your territory and look for ways to "redraw" it so as to be more productive for you. Many franchises will do this for no charge beyond the executive's out of pocket expenses.
Find a Buyer
. If you truly believe that there's nothing you or the franchise can you to improve your situation, then it's time to head for the exit. Let the franchise know you are willing to sell out, and (if the franchise agreement doesn't already provide for this) offer them a "brokerage commission" if they find a buyer. Contact all of your local franchise brokers - the best ones are members of Franchise Network (
www.frannet.com
), The Entrepreneur's Source (
www.esource.com
) and FranChoice (
www.franchoice.com
) - business brokers, commercial real estate brokers, and outplacement centers (where laid-off corporate executives with large severance packages are just dying to buy a local small business). Take out a "Business for Sale" ad in the classified section of all local newspapers, as well as online resources such as Craigslist (
www.craigslist.org
).
Hand Back the Keys
. Even though the franchise agreement doesn't give you an "out" if the franchise doesn't work, almost all franchises will let you out of your franchise and set you free on the following conditions:
you agree not to sue the franchise, and to release them from any liability they may have to you;
you pay all money that's due to them, and don't ask for any of your money back;
you return the franchise Operating Manual and all materials that have the franchise's name and logo on them; and
(most importantly) you agree to comply with the noncompete provisions in your original franchise agreement - these generally will prohibit you from engaging in the same or a similar business within an X-mile radius of ANY of the franchise's franchisees for a period of Y years.
Take the Franchise to Court
. When all else fails, you may have to consider going to arbitration or filing a lawsuit against the franchise. Before doing so, you should talk to an attorney who specializes in franchisor-franchisee litigation - preferably one who has sued this particular franchise before, and won. Review the "litigation" section of the franchise's Uniform Franchise Offering Circular (UFOC), contact franchisees who have sued the franchise, and ask them for the name of the attorney who represented them.
In order to win any sort of litigation against a franchise, you will need to prove clearly either that the franchise committed fraud when it sold you the franchise (i.e. it knew the franchise model was a dud), or that the franchise failed to provide you with the support promised in your franchise agreement. Keep in mind that in most states the statute of limitations for "breach of contract" cases such as this is relatively short - usually only two or three years after you signed your franchise agreement. And your franchise agreement will require you to bring the suit where the franchise's headquarters is located, and where the cards will be stacked in the franchise's favor.
If other franchisees are as disgruntled as you are, consider filing suit jointly - you will look a lot stronger, and will be able to share the considerable expenses involved.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:22Z
Competing With A Franchise, Before You Even Sign Up
Staff
http://www.DrLaura.com/b/Competing-With-A-Franchise,-Before-You-Even-Sign-Up
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2010-05-07T08:51:20Z
2010-05-07T08:51:20Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Competing With A Franchise, Before You Even Sign Up
By Cliff Ennico
www.creators.com
#147;I am thinking about buying a franchise in a particular industry. There are three franchises currently operating in this industry, and I would like to buy one of their existing franchises rather than start one up myself from scratch. I have contacted all three franchises and asked them to send me their Uniform Franchise Offering Circulars (UFOCs). Two of the three have asked me to sign a nondisclosure agreement (NDA) before they will send me anything, but the third franchise wants me to sign a noncompete agreement saying I won#146;t work anywhere in this industry for two years after they give me #145;confidential information#146; about their operations. Can they legally do that? If I sign the noncompete with this third franchise, am I prohibited from buying a franchise from one of the other two?#148;
One of the biggest fears any franchise has is that someone will show an interest in the franchise, #147;kick the tires#148; for several months, learn everything there is to know about running the business (most franchises deal with very basic retail and service business models, which are fairly easy to learn), then blow them off and set up in business on their own.
Technically, a UFOC is not #147;confidential information#148; in any meaningful sense, because it is publicly available and on file with the Federal Trade Commission (www.ftc.gov). You can get a copy of any franchise#146;s UFOC from franchise oriented websites such as
www.ufocs.com
,
www.ufochelp.com
,
www.frandata.com
and
www.franchisehelp.com
, and in many cases from the franchise#146;s own website. If you can#146;t find it anywhere else, you can contact the franchise and they#146;ll send it to you #150; free.
Once you have the UFOC, though, you have a list of all of the franchise#146;s present and former franchisees, and can call and visit them to find out whether they#146;ve had a good experience with the franchise or not. That#146;s where the franchise#146;s concern about confidential information kicks in, because the franchise can#146;t control what their franchisees tell you. Some franchisees are more #147;loose lipped#148; and candid than others when talking about the franchise and their relationship with it. Franchises are terrified you will gain access to detailed information about their operations and #147;trade secrets#148; that isn#146;t available in the UFOC #150; that#146;s why you are almost always asked to sign a nondisclosure agreement when you talk to a franchise.
But a noncompete? As the Wizard of Oz would say, that#146;s a #147;horse of a different color#148;.
Unlike a nondisclosure agreement, which requires you to keep information you learn about a franchise secret, a noncompete agreement bars you from buying a competing franchise, or even working in the same industry.
I#146;m pretty sure that in most states this practice #150; asking you to sign a noncompete agreement as a condition to talking to you about the franchise #150; would be viewed as an #147;unfair trade practice#148; whose sole purpose is to prevent you from choosing among competing franchises. The good news is that if you violate the noncompete and the franchise sues you, you probably will win. The bad news is that you will have to spend years of your life, and thousands of dollars in legal fees, to win that court case. And you will probably be under a court #147;injunction#148; not to work for a competing company until the court makes up its mind whether the noncompete is an #147;unfair trade practice#148; or not. That could take years.
I suspect what may have happened here is that you #147;tipped your hand#148; to the third franchise that you were looking to buy one of their existing franchise outlets, rather than start one up on your own in a new territory. Franchises are all about growth, and expanding into new territories. While franchises are happy to work with someone who wants to buy out an existing franchisee #150; it helps the franchise dispose of an unhappy franchisee in a very positive, #147;win win#148; way #150; it doesn#146;t add any new revenue to the franchise#146;s bottom line (other than a relatively small, one time #147;transfer fee#148; to pay for your franchise training). A franchise isn#146;t going to risk divulging its #147;trade secrets#148; to someone who isn#146;t helping them grow.
In order to buy an existing franchise, you will have to ask their existing franchisee lots of detailed questions about the franchise#146;s operations, earnings, and so forth #150; precisely the sort of information the franchise doesn#146;t want #147;floating around the industry#148;. So I understand why they asked you to sign a noncompete agreement #150; although they should have talked to their lawyers before doing so.
The bottom line: don#146;t sign any noncompetes with a franchise before you commit to the franchise and sign their legally binding Franchise Agreement. If you do, you will be #147;giving them a sword#148; to use against you should you decide to buy a franchise from one of their competitors. I would focus my attention on the other two franchises, and, when talking to Franchise A#146;s franchisees, keep your mouth shut about what Franchise B#146;s franchisees may or may not be doing.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:20Z
Ten Questions To Ask Before Buying A Franchise [Part 2]
Staff
http://www.DrLaura.com/b/Ten-Questions-To-Ask-Before-Buying-A-Franchise-Part-2
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2010-05-07T08:51:18Z
2010-05-07T08:51:18Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Ten Questions To Ask Before Buying A Franchise [Part 2]
By Cliff Ennico
www.creators.com
Here are five more questions to ask when reviewing a franchise's Uniform Franchise Offering Circular (UFOC):
6.Is the Management Team Seasoned and Well Experienced?
Don't gloss over the management biographies in the back of the UFOC; take out a magnifying glass and pay close attention to them. How long have these individuals been with the franchise? If the entire management team has been with the franchise less than five years, watch out - high turnover could indicate a fundamental problem with the franchise model. Also, look for relevant industry experience - a former marketing director for a consumer products company may not be the best "fit" for a fast food restaurant franchise.
7.How Good Is the Franchise's Real Estate Team?
Successful retail franchises are all about location, location, location. Meet with the franchise executives who will help you find a location for your franchised business. If you don't like these folks, don't buy the franchise. Period.
Ask tough, hard questions. Will these people fly to your area and help you scout out locations? Will these people roll up their sleeves and help you negotiate with a difficult landlord? Beware of real estate professionals who have spent their entire careers in only one part of the country.
8.Are The Franchise's Startup Cost Projections Realistic?
Many franchises start up in areas of the country where real estate and labor costs are relatively cheap. These franchises often get into trouble when they branch out to the East and West coasts and urban areas, where everything's more expensive. Always talk to local real estate brokers, insurance brokers, construction contractors and - especially - the franchise's other franchisees in the area to "reality check" the startup cost projections in the UFOC, which are often based on national or regional average costs.
9.Are There Any New Technologies or Business Models That Are Threatening the Franchise's Business Model?
Many traditional retail and service businesses are facing serious challenges from new technologies, business models, and changes in consumer attitudes. Ask anyone who was in the publishing business 10 or 15 years ago what the Internet has done to their industry (and their career), and you will get an earful.
Some franchise models are a bit like those characters in bad horror movies who've have their heads cut off but don't quite realize they are dead yet. You will have to ask the tough questions, and deal with the fact that often the franchise's executives haven't given serious thought to these challenges themselves.
Some examples:
if you are looking at an after-school tutoring franchise, ask the executives how "e-learning" and online Webinars are impacting their business model.
if you are looking at a check cashing franchise, how will the evolution of a "cashless society" based on online payment systems impact that business? Will laws making it easier for illegal immigrants to become U.S. citizens and qualify for bank accounts have a serious impact on the franchise model?
if you are looking at an eBay "consignment shop" franchise (where people bring things to you and you sell them online), how will recent eBay system changes favoring high-volume sellers over occasional "Mom and Pop" vendors impact their operation?
10.What if the Franchise Owners Sell Out?
When starting any business, the founders give serious thought to their "exit strategy" - how will they cash out of the business and recoup their investment once it's become successful? Franchises are no different. For most large franchise operations, the most common exit strategy is to sell out to someone else - sometimes another franchise, sometimes a large corporation in the same industry.
When buying any franchise, you have to consider that at some point the franchise will buy, or be bought by, someone else, and you will be required to make changes, sometimes radical ones, to the way you do business. Ask any UPS Store owner who formerly ran a MailBoxes Etc. franchise how easy it was to make that transition, and you will get an earful.
Here are some tough questions:
looking at other franchises in the industry, who would be the most likely merger partner for this franchise?
are there any large non-franchised businesses in the industry who would possibly buy this franchise and require franchisees to sell only its products?
if this franchise were to merge with another franchise, would this franchise be the acquirer (and therefore more likely to impose its model on the acquired franchise) or the acquiree (and therefore more likely to adopt the other company's model)?
what rights will you have if the franchise merges with another franchise and the other franchise has a competing franchisee in your territory? Will you be forced out of business if your franchise agreement expires before the other guy's does?
Most franchises will tell you they have "no immediate plans" to merge with another company, but if they tell you they've never thought about it or would never consider selling out, don't believe it. It's on their minds, and it should be on yours as well.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:18Z
Ten Questions To Ask Before Buying A Franchise
Staff
http://www.DrLaura.com/b/Ten-Questions-To-Ask-Before-Buying-A-Franchise
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2010-05-07T08:51:16Z
2010-05-07T08:51:16Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Ten Questions To Ask Before Buying A Franchise
By Cliff Ennico
www.creators.com
"I was recently laid off from a corporate job, and have decided not to return to corporate America. I'm thinking about buying a franchise, but their Uniform Franchise Offering Circular (UFOC) is over 100 pages long, and I really don't know where to begin. Do you have any tips for reviewing UFOCs, and the questions I should be asking these folks?"
Here are ten things you should look for when reviewing a franchise's UFOC (the disclosure document franchises are required by law to deliver to prospective franchisees):
1.How Many Other Franchisees Are There, and How Long Have They Been in Business?
The first place to look is the number of franchisees. If there are relatively few, and the franchise has been in business only a few years, then this is an "early stage" franchise. There's good news and bad news there.
The "good news" is that you might be able to buy "area development rights" to an entire state or region of the United States. This means you are the "master franchisor" for your state or region, and can sell franchises to the local folks who will actually grill the hamburgers, dry clean the shirts, or whatever. You can get filthy rich that way - all you have to do is collect the royalty checks from your franchisees, deduct your fee, and remit the balance to the franchise headquarters. Not a bad way to make a living, no?
The "bad news" is that this franchise's model hasn't been tested yet. There's a good chance this franchise will fail, and you will lose your investment.
Unless your appetite for risk is unusually high, what you want to see is a fairly large number of franchisees who bought into the franchise at consistent intervals (in other words, the number of new franchisees is fairly consistent from year to year). Be careful before buying into a franchise if (1) all of the franchisees have bought into the system within the last three years, or (2) all of the franchisees have been in place for more than three years and there are no "newbies".
2.Where Are the Franchisees Located? Are They All Over the Country, or Concentrated in Certain Places?
Many franchises are "regional" in nature - they work well in some parts of the country, but not so well in others. For example, a franchise that serves "smoothies" and other healthy food products is bound to do well in California and college campus towns. Will it do as well in cold-climate states, or rural areas? A franchise that originates in the Midwest and South - where real estate prices and labor costs are relatively low - may well have problems when it expands to the East Coast and West Coast.
3.How Many Franchisees Have Left the System in the Past Few Years?
A franchise is required to tell you the names, addresses and telephone numbers of franchisees who have left the system for one reason or another. The better ones disclose that information in their UFOCs; the rest will tell you, but only if you ask. Call these folks and find out why the franchise didn't work for them. Most of them will have an "axe to grind," of course, but by listening carefully you should be able to determine if the problem was the franchise, or if these people simply weren't a "good fit" for the franchised business.
4.Typically, How Long Does It Take For a Franchisee to Recoup the Initial Upfront Investment?
This information probably won't be in the UFOC, but by calling lots of franchisees (I always recommend talking to at least 10), you should be able to get a sense of roughly how long it will take for you to recover your upfront investment in the franchise. If it's less than three years, great! If it's more than five years on average, I would ask the franchise lots of tough questions.
5.Has the Franchise Sued Any of its Franchisees, or Vice Versa? If So, What Are These Lawsuits About?
The "litigation" section of the UFOC is probably the most valuable in the whole document, and is often overlooked by prospective franchisees because "only a lawyer can understand this stuff". Bad mistake! A franchise that sues its franchisees over relatively minor infractions of its rules is not a franchise you want to be involved with.
If a franchise is more than five years old, and there are more than one or two lawsuits with franchisees, you need to ask some questions. If the franchisees were clearly in default and the franchise had to sue to recover its royalties and boot the "bad apples" out of the system, that's one thing. If, however, the claims are for antitrust law violations and were brought by state attorneys general, that may indicate a fundamental problem with the franchise's business model. Ask your attorney to review this section of the UFOC (most will not charge more than an hour's time for this) and explain the contents in "plain English".
More next week . . .
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:16Z
"Wikis" and the Law
Staff
http://www.DrLaura.com/b/Wikis-and-the-Law
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2010-05-07T08:51:14Z
2010-05-07T08:51:14Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>"Wikis" and the Law
By Cliff Ennico
www.creators.com
"I'm widely considered an expert in a particular field, and am thinking of contributing an article to Wikipedia - the online encyclopedia - as a way of promoting my consulting practice. What are the legal ramifications of contributing to a 'Wiki,' and how do I protect myself against liability?"
For those who don't know, a "Wiki" is a collaborative Website where anyone can contribute content, and edit other people's content. Probably the best known "Wiki" is
www.wikipedia.org
, an online encyclopedia with more than 2,500,000 entries in English.
Here's how it works: you write an article (if one hasn't already been done) and post it on Wikipedia. By so doing, you agree to Wikipedia's "Free Documentation License", essentially waiving your rights under the copyright laws. If other people see your article and feel they have something to add, correct or contribute, they can "edit" your content, so that over time the article will become longer, more thorough, more fair and balanced, and more up to date than any article by a single author could possibly be. Likewise, if you feel someone has edited your content incorrectly, you can "re-edit" your content and send e-mails to other contributors explaining why you are doing what you're doing, and so forth.
Posting an article on Wikipedia can be a terrific way to get exposure for your business. Wikipedia has done an amazingly good job of search engine optimization - search for any relevant topic on your favorite search engine, and a Wikipedia article is likely to be in the first 10 listings.
But there's a catch: because "wikis" are democratic by nature, you don't have to establish your credentials as an expert to post an article on Wikipedia. Indeed, anyone can post content on a "wiki", whether they know anything about the subject matter or not. And there's the rub.
To quote from the Wikipedia article on "Wikipedia": "Users should be aware that not all articles are of encyclopedic quality from the start, and may contain false or debatable information. Indeed, many articles start their lives as partisan, and after a long process of discussion, debate and argument, they gradually take on a neutral point of view reached through consensus. . . . However, eventually additional editors expand and contribute to articles and strive to achieve balance and comprehensive coverage."
Wikipedia, and other "wikis", have adopted policies and procedures to guard against editors whose goal is to distort the truth - called "vandals". Most wikis have an online dispute resolution mechanism for conflicting editors, and will bar repeated "vandals" from editing content on the site.
But what if it's too late? What if someone edits your article on Wikipedia and does something bad that upsets someone so much that they sue you? Some examples:
someone edits your article and posts false and misleading information about another person - a celebrity, a politician, or just an average person - with the goal of ruining that person's reputation (see the Wikipedia article on "Defamation");
someone edits your article and posts embarrassing - but entirely true - information about someone that invades their privacy (see the Wikipedia article on "Privacy Laws in the United States");
someone edits your article by "cutting and pasting" someone else's content into your article ver batim (see the Wikipedia article on "Copyright Infringement");
you have enemies, and they deliberately change your content by inserting incorrect or damaging information that makes you look like a fool (see the Wikipedia article on "Personality Rights").
When contributing content to a Wiki, or editing someone else's content, the word "partnership" should pop up in your head. Wikis are by nature collaborative - each article has several or more authors and "editors" - and collaborators usually are viewed as "partners" when it comes to legal liability.
That's not a good thing, because partners have "joint and several" liability for their acts and omissions - if one partner gets sued, all partners are liable, regardless of the person who actually was at fault (see the Wikipedia articles on "Partnership" and "Joint and Several Liability"). So if someone sues the authors of a Wiki article because of a false or misleading statement made by only one of the authors, all contributors to that article are subject to the lawsuit.
Of course, the "innocent" authors of the article will have recourse against the "guilty" author. This is called "contribution and indemnification" - see the Wikipedia article on "Contribution Claim (Legal)". But if the bad author doesn't have much money, has filed for bankruptcy, has given Wikipedia false data about his or her identity, or is otherwise "judgment proof", then the innocent authors, including you, will be left holding the bag.
When contributing content to a "wiki", do your homework well - make your article as comprehensive, fair and balanced as possible to keep the number of "editors" at a minimum, and check your "wiki" contribution at least once each week so that you can catch and correct any wayward "edits" before they get you into legal hot water.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:14Z
Collecting Your Overdue Bills "From A Distance"
Staff
http://www.DrLaura.com/b/Collecting-Your-Overdue-Bills-From-A-Distance
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2010-05-07T08:51:12Z
2010-05-07T08:51:12Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Collecting Your Overdue Bills "From A Distance"
By Cliff Ennico
www.creators.com
"Your recent columns on collecting from deadbeat clients were truly inspiring. I am an electrical contractor who is owed $3,000 from a customer located way on the other side of the state. His business is selling a product, made by others, and installed by electrical contractors such as myself. He has no business assets, works from home, and has no job site work (he may be on a site for 1-2 hours). He is, however, incorporated. I won a small claims court judgment against his corporation, but the courts will not enforce the judgment because of the great distance, and I have spent approximately $2,300 for my attorney to get the judgment. Collection agencies will not help either. I am at wit's end. Are there any options I may have overlooked?"
First of all, here are a couple of tips about suing in small claims court. Generally, courts are required to enforce judgments rendered by other courts elsewhere in your state - this principle (known as "comity") is enshrined in your state constitution.
But there's a catch. A court is obligated to enforce another court's judgment only if the case was fully litigated - the other side showed up on the court date, both of you argued your case before the judge, and the judge rendered a decision based on all the facts presented to him. If (as I suspect) what you got was a "default judgment" - the other side simply didn't show up in court because of the great distance involved - his local court may refuse to enforce your judgment on the grounds that a local citizen didn't have his "day in court".
Whenever you sue someone in small claims court, and that person lives remotely from you, you always, always, always bring the action in the court where he is located or has his place of business - not the place where you are located. Yes, it's inconvenient for you, but at least you will know that if you win the other court will always enforce its own judgment against the deadbeat (even a "default" judgment). Also, if your case is a really strong one, you may (no guarantee here) be able to persuade the court to reimburse you for travel, lodging and other out of pocket expenses you incurred in getting the judgment.
Secondly, I always advise against hiring an attorney to represent you in small claims court. Some judges don't like to deal with attorneys, and it takes just as much time for an attorney to prepare for a small case as it does a much bigger one. This is one situation where you are better off representing yourself, as it doesn't make sense to spend $2,300 and countless hours and days of your life to collect a $3,000 judgment.
Lastly, you are assuming that your customer was the one-person corporation and not the individual himself. People are allowed to form corporations and limited liability companies (LLCs) for the sole purpose of avoiding personal liability to creditors. But if you can prove that you dealt with the individual directly, and not his corporation, you may be able to enforce your judgment against the individual's personal assets, such as his house, automobiles, and his salary from his day job.
Look at the invoices you sent him - were they addressed to the individual, or to his corporation? If you treated his corporation as your customer, then there's little you can do to reach his personal assets. You will have to prove in court that he treated his corporation as a "personal piggy bank" and otherwise treated his corporation with so little respect that it should be disregarded (this is called "piercing the corporate veil"). This will be very difficult for you to do. If, however, your bills were addressed to him individually and he wrote checks to you from his personal bank account, you may have a case for pursuing him individually, which is much more likely to get you paid.
Going forward, you should have your attorney prepare a short (one to two pages maximum) retainer agreement which your customers will sign before you begin working for them. Make sure the agreement contains the following clause: "My agreement is to perform services for the person or persons signing this agreement in their individual capacities, and I will look to them personally for the payment of my fees and expenses. While I may accept payment from a corporation, limited liability company, or other legal or business entity that is related to you, I will not be obligated to rely on such entity for the payment of my fees and expenses unless I expressly agree in writing to do so." That language could have saved you a ton of time and frustration here.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:12Z
Making Money, And Paying Taxes, One Click At A Time
Staff
http://www.DrLaura.com/b/Making-Money,-And-Paying-Taxes,-One-Click-At-A-Time
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2010-05-07T08:51:10Z
2010-05-07T08:51:10Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Making Money, And Paying Taxes, One Click At A Time
By Cliff Ennico
www.creators.com
"Do you have any thoughts on the legal and tax aspects of 'affiliate marketing' - when you use your website to sell other people's products through Clickbank or other affiliate sites? This system creates a link on your website where the customer doesn't actually see content on your site but goes through it directly to Clickbank's site and you are paid a portion of the sale for the link to Clickbank's website."
There's nothing new about affiliate marketing - it's been around as long as the Web itself. Basically, by becoming an "affiliate" of another website, you become a "sales representative" of that website - you help that website sell their stuff and if they make any money from a customer who clicks on the "affiliate link" on your website, they pay you a commission.
Websites like Clickbank take this process to a different level. Think of Clickbank as an intermediary between websites that are looking for affiliates to help sell their stuff (usually digital information products such as e-books), and people who want to be affiliates. For example, if I had a digital e-book (I don't, at least not yet), I could become a "Clickbank publisher" and allow Clickbank to sell my e-book, either directly or through its affiliates.
Now, let's say you fall in love with my e-book and want to sell my book on your website. You would set up a Clickbank account, tell them you want to sell my book, and create a link to the Clickbank website. If someone clicked on the "Cliff's book" link on your website, Clickbank would process the order, collect payment from the customer, pay you your commission, pay me the rest (less Clickbank's fee, currently 7.5%), handle refunds, issue IRS Form 1099 at the end of each year, and provide other services. With Clickbank and other similar sites you can offer a whole bunch of other people's stuff to your customers and get sales commissions without having to lift a finger. Pretty cool, huh?
But there's a catch (isn't there always?). When doing business with Clickbank or any other affiliate site, the words "drop shipper" should pop up in your head immediately. Whenever you are selling someone else's stuff but don't actually take possession of it, and that someone else handles all of the order fulfillment tasks (the shipping, handling, packaging and so forth), you are a "drop shipper" for legal and tax purposes.
Full disclosure: I'm not a Clickbank scholar, and I haven't studied their website in detail. But a quick look at their operation leaves me with the following questions, which you should ask if you're planning to become a Clickbank "affiliate".
Sales Taxes
. By becoming a "Clickbank affiliate" for one of Clickbank's "publishers", you are creating a three way business relationship between you, the information publisher, and Clickbank itself. This means someone will have to collect sales taxes whenever any of the following people click on your "affiliate" link and order from Clickbank:
people who live in the same state you do;
people who live in the same state the information publisher is located; and
people who live in Idaho (where Clickbank has its headquarters), Colorado (where Clickbank has an office), and any other state where Clickbank has a physical location or "nexus" for tax purposes.
Will Clickbank keep track of this, by charging the customer sales tax and remitting it to the appropriate state tax authority? Or is that your responsibility (or the publisher's)?
Legal Claims
. Let's say someone clicks on your "affiliate" link, downloads my e-book from Clickbank's website, and discovers to his horror that I've invaded his privacy by disclosing all the lurid details of his private sex life. Clearly, as the publisher of this e-book I am legally responsible for its content, and will have to indemnify Clickbank (defend the lawsuit at my own expense, and pay the judgment if the customer wins) in case the offended reader sues them. But where do you, the poor "affiliate", stand in all this? Since the reader ordered the book from your website, you are in the "chain of sale" and may well be sued along with the rest of us. Is anyone indemnifying YOU if that happens?
"Pyramid" Schemes
. Clickbank allows its "affiliates" to set up their own "affiliate" programs where other websites (let's call them "sub-affiliates") can create a link to the affiliate's website which automatically links to Clickbank's website (getting dizzy yet?), with everyone in the upstream affiliate "chain" getting a piece of the purchase price each time something is sold.
If these programs aren't set up properly, there's a risk that you will be creating an illegal "pyramid" scheme where people get commissions for bringing on board sub-affiliates who aren't actually selling anything. Make sure a good lawyer helps you set up your "Sub-Affiliate Agreement" to make sure you're not caught between a rock (angry sub-affiliates) and a hard place (Clickbank and its legal team).
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:10Z
Doing Business When You Can't Stay Put
Staff
http://www.DrLaura.com/b/Doing-Business-When-You-Cant-Stay-Put
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2010-05-07T08:51:08Z
2010-05-07T08:51:08Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Doing Business When You Can't Stay Put
By Cliff Ennico
www.creators.com
"I'm an Army wife looking to start up a home-based graphics and web design business. I know I need to set things up legally -- and desperately want to, but my problem is our upcoming out of state move. My husband's been given orders to become a recruiter which means he'll be shipped off to Recruiter School soon and upon graduation in the middle of next year we'll be moving to a new location. We won't learn where we're moving until early February. As my husband has at least another eight years in the Army, this kind of thing is bound to happen at least three more times. How do I even begin to set up a business? Do I work as a sole proprietor until we're relocated? Or do I set up something more structured now? "
Until your situation changes and you get more settled, you are probably better off operating as a sole proprietor, as you will be able to "move" that from one location to another a lot easier than you can a corporation or limited liability company (LLC).
LLCs and corporations are "state specific" - each time you move you will have to shut down the old one and set up a new one, which can be very expensive and time consuming. By operating as a sole proprietorship, you will be able to use the same federal tax ID number whatever state you are in. As you move into a new state, you will register with that state's tax authority and obtain a state tax ID number. If you move from one state to another in the middle of a calendar year, you will have to file two state tax returns for that year only - one in the "old" state for the time you spent there, the other in the "new" state for the time you spent there.
Of course, if you're in a business with a high risk of legal liability, you will be sacrificing the protection from personal liability that a corporation or LLC affords. But since you're doing Web design work, it's highly unlikely you will be sued - if a client is unhappy with your work, they will refuse to pay you, or you will give them some of their money back to keep them happy. Still, just to be safe, I would take out a basic "errors and omissions" insurance policy so that if you ever are sued, the aggrieved customer will go after the policy and not your house or other personal assets.
"I need a federal tax ID number because I am opening a new business here in the United States. I am originally from Sao Paulo, Brazil and don't have a Social Security Number. The IRS says that I cannot get a federal tax ID number unless I have a Social Security Number (SSN). There's part of me that thinks I don't really need a tax ID number at all - do I need a tax ID number to invoice my clients?"
You will need to retain an accountant to help you with these matters. Tax ID numbers can get very tricky and do not want to do this without professional help.
You will need to check your immigration status. If the visa allowing you to live legally in the United States does not allow you to operate a business, then there's nothing you can do about that -- you cannot operate an illegal business here. If your visa status allows you to operate a business here, then you should consider getting an ITIN (Individual Taxpayer ID Number) from the IRS -- it's like an SSN for people like yourself who do not qualify for an SSN (for details, go to
www.irs.gov
and check out IRS Publication 1915). Once you get the ITIN, you can use that to get a federal tax ID number for your business (perhaps -- the rules are very complicated, which is why you need an accountant).
As for invoicing your clients, it depends on the type of business. If you are selling goods at retail or wholesale, you normally do not put your tax ID number on the invoices you send to your customers. If you are in a service business, however, and you perform more than $600 worth of services for a customer during a calendar year, that customer is required to send you a Form 1099, with a carbon copy to the IRS. They will send you IRS Form W-9 requesting your federal ID number, and you sure as heck better have one by that time!
I always put my federal tax ID number on every invoice I send to law clients. That way if they wish to send me a Form 1099 they don't have to send me Form W-9 - they just look at their latest bill and there's my number. Otherwise I would have to spend an hour a day each January fielding telephone calls and e-mail messages from people asking for my federal tax ID number. Life's too short.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:08Z
Ten New Year's Resolutions For 2008, Part Two
Staff
http://www.DrLaura.com/b/Ten-New-Years-Resolutions-For-2008,-Part-Two
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2010-05-07T08:51:06Z
2010-05-07T08:51:06Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Ten New Year's Resolutions For 2008, Part Two
By Cliff Ennico
www.creators.com
Here are six more New Year's Resolutions for business owners.
Find Three New Sources of Saleable Product.
If your business is selling stuff online, one of your biggest challenges is finding high quality stuff to sell at a profit. If you're not currently taking consignments, you're out of your mind. Take out an ad in your local newspaper saying "I Take Consignments!" with a toll-free telephone number. Trust me, you will get calls. Let the local senior citizen community know you are available to help them clean out their houses and apartments when they move into an assisted living facility. Finally, make 2008 the year you cut out the middlepeople in your life -- go to
www.worldwidebrands.com
and
www.globalsourcedirect.com
and find out where you can buy the stuff you're currently selling directly from the manufacturers in Asia.
Get Your Taxes Right.
If you have been selling things online and haven't been paying taxes, now is the time to get into compliance with the tax laws. The IRS is losing patience with people who don't know they are in business when they're selling online, and it's only a matter of time before they require PayPal and other online payment systems to send you 1099s (with a copy to the IRS) making your activities public. Get a copy of my new book "The eBay Seller's Tax and Legal Answer Book," and read it cover to cover - it's the best twenty bucks you will ever spend.
Renew Your Web Address.
If your business is dependent on the Internet, make sure you check Network Solutions (
www.networksolutions.com
) at least once each year to make sure your Web address hasn't expired. They do send you renewal notices, but often these get picked up as "spam" by your antispam software, so you never see them, your Web address expires and gets grabbed by someone else. Pick a date that's easy to remember - like your birthday - and renew each of your important Web addresses on that day.
Update Your Software Twice a Year.
Just about every software program gets updated at least once or twice a year, but not every software developer sends you an e-mail announcing the latest updates. Make it a point to visit the Website "home page" of each software company whose products you license, and look for a button that says "check for updates" or something like that. It just may save your PC.
Sheath Your Cell Phone.
Make 2008 the year you stop being a "cell phone slave". Make some rules about when you will use your cell phone, and when you won't, and stick to them. Among those I highly recommend: do not use your cell phone while driving a motor vehicle; use your cell phone only for outgoing business calls; do not use your cell phone in public places where your conversation may be overhead by total strangers with evil on their minds.
Get Control of Your Bookkeeping.
If your bookkeeping system consists of a shoebox, you have absolutely no idea what's going on in your business. Sign up for your local community college's evening class on QuickBooks Proreg; and learn to do it the right way. If you use "live" bookkeepers, meet with them at least 3 or 4 times every year, review your chart of accounts and other operating statements with them, and get their opinions on things you are doing right and things you need to improve. Because they are not "in the trenches" with you every day, they are likely to see patterns and trends you are too busy to notice.
Start Escrowing for Estimated Taxes.
If you pay estimated taxes to the federal and state governments four times a year, and find yourself occasionally without enough cash on hand to make the tax payments, you need to start "escrowing" for these taxes. Take your gross sales each month, withdraw 40% of that amount from your business checking account, and deposit it in an interest-bearing savings account. Do this every month, and learn to operate your business on the remaining 60% of revenue. This way you will be sure to have enough cash on hand to make your tax payments when they come due.
Get Involved in the Election Process.
This is an election year, and with all the talk about the war in Iraq, universal health insurance coverage, and other policy issues, so far none of the Presidential candidates has said anything about what they will do to help small business owners. Go to their Websites, participate in their periodic "town meetings," and ask them. If your Congressperson or Senator is running for re-election this year, call up her campaign director and volunteer to be an advisor on small business issues. Whatever you do, don't be silent. If you don't make yourself heard, then you won't have any right to complain when your business gets clobbered with high taxes and crazy government regulations in 2009.
A happy, prosperous and successful New Year to all of my readers.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:06Z
Ten New Year's Resolutions For 2008, Part One
Staff
http://www.DrLaura.com/b/Ten-New-Years-Resolutions-For-2008,-Part-One
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2010-05-07T08:51:04Z
2010-05-07T08:51:04Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Ten New Year's Resolutions For 2008, Part One
By Cliff Ennico
www.creators.com
When you stop to think about it, New Year's Resolutions are all about habits. Breaking some bad ones (smoking, drinking excessively, binging on fast food when you've had a bad day), and starting new ones (working out, eating more Brussels sprouts).
Businesses, like individuals, develop bad habits over time that need correction, while success in business over the long run usually means adopting good management habits and sticking with them year after year.
So, without further ado, here are my 2008 New Year's Resolutions for business owners.
Do an Annual "Legal Review"
. It isn't enough to hire a good lawyer and pray you don't get sued. Every business has laws and regulations you need to know about, and it's your responsibility to learn about them so you can prevent lawsuits before they happen. Take your lawyer to lunch sometime in January, tell him or her everything your business did last year and is planning to do this year, and get some education on how to do things better. If you are a corporation or limited liability company (LLC), have your attorney draft some resolutions for you and your partners "ratifying" the big decisions you made last year - these will save you a lot of heartache if you are ever sued, or audited by a government agency.
Sign 'Em Up; Nail 'Em Down
. You've got a part-time salesperson or administrative assistant working in your business one or two days a week. While they're there, you tell them what to do, when to do it, and how to do it. You believe this person is an "independent contractor", so you don't withhold money from their paycheck each week. Bad idea! The IRS is very likely to look at this person as a part-time employee, and they will come down on you like Thor's hammer if they find out. Now's the time to have this person sign a one-page employment agreement "effective January 1, 2008" (your attorney can draft this for a couple of hundred dollars), and add them to your payroll.
What should the agreement say? At the very least, it should clearly state (1) that the employee serves "at will" and can be terminated at any time, with or without a reason, (2) that the employee cannot work for a competing company while they're on your payroll, and (3) that the employee will not hire your employees or solicit business from your customers for one year after the employment relationship is terminated for any reason.
If the part-timer is your first employee, don't forget to have your accountant sign you up for payroll taxes (IRS Forms 940 and 941), and for your state's unemployment compensation system. You may also have to look into worker's compensation insurance; your insurance agent can help you with that.
Loosen Up Your Vocal Cords
. One of the best ways to distinguish yourself from your competition, especially if you are a consultant, is to become the local expert in your field. Volunteer to speak at local business luncheon meetings. Teach a course at your local community college. If you run a butcher shop, call your local cable TV news show and volunteer to do a segment on "how to carve your holiday turkey" - people love that stuff, and news reporters love it when you make their life easier by suggesting story ideas. However you do it, get out in front of your marketplace and let them see you. Not only will you build your self-confidence as a public speaker, you will get tons of free publicity for your business.
Finally, have a local musician record your presentation, break it down into segments by topic, and put them up on your Website as downloadable "Podcasts".
Update Your Web Presence
. Look at your business Website, and make at least five (5) changes that will make it more attractive, fun and "cool" to prospective customers. Post some content-rich articles answering commonly-asked questions about what you do. Put some videos on your Website (and post the videos on YouTube) demonstrating in an entertaining way how to do (or not to do) something. Start a "blog" where your customers can talk to each other about the stuff you do, with you as the all-knowing "moderator". Most importantly, hire a search engine optimization (SEO) consultant and learn what you can do to get your Website higher in the Google search rankings.
At the same time, delete things from your Website that are boring, difficult to access, or that do nothing to address your customers' fears and passions. If you are a lawyer or accountant, nobody cares what you look like or where you went to school, so get rid of the Website photo and biography. Put up your fee schedule instead, because clients DO care about how much you are going to charge them for your services!
More next week . . .
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:04Z
When You Drop Off eBay's Screen
Staff
http://www.DrLaura.com/b/When-You-Drop-Off-eBays-Screen
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2010-05-07T08:51:02Z
2010-05-07T08:51:02Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>When You Drop Off eBay's Screen
By Cliff Ennico
www.creators.com
#147;I am a small book store owner. I have been doing business online through Half.com (owned by eBay) for the last 15 months or so. My business through Half.com has steadily increased and I was very happy to gross over $100,000 in the last year. About two months ago, I was notified by Half.com customer service that I was in violation of eBay regulations for #145;category gouging#146; and that my account was suspended. Then, I was told to remove any and all online inventory that was in violation of this policy. Promptly, I made the corrections and requested reinstatement of my account. However, Half.com still refuses reinstatement of my account, stating that I am still in violation. Can you please advise what I should do to get my account reinstated? Is there anyone I can get in touch with and file a complaint? I have lost thousands of dollars as the result of the suspension, and am happy to do whatever is necessary to get back into eBay#146;s good graces.#148;
When you start selling on eBay, you agree to be bound by the terms of eBay#146;s #147;user agreement#148;. This document #150; a contract like any in the #147;brick and mortar#148; world #150; can be reached via a link at the bottom of every page on the eBay site. As part of this contract, you agree to be bound by a number of eBay #147;policies#148; #150; in effect, eBay#146;s private legal system for ensuring that buyers have a decent experience on the site. Finding these isn#146;t always easy, but if you click on the #147;Help#148; tab from any page on the eBay site, then click on #147;A to Z Index#148;, you will find most of eBay#146;s policies listed under #147;L#148; (for #147;Listing Policies#148;) and #147;P#148; (for #147;Policies#148;).
Just as in the offline world, #147;ignorance of the law is no excuse#148;. While eBay offers a number of services to help its sellers do more and better on the site, it is not responsible for teaching you how to comply with its policies. It is up to you to learn what eBay#146;s policies are and ask questions before you violate them.
#147;Category gouging#148; is not defined as an eBay offense, but I suspect what you did here was violate eBay#146;s #147;categorization#148; policy (for details, see pages.ebay.com/help/policies/listing-categorization.html). Basically, you are supposed to list your stuff in the proper category #150; you don#146;t list Hummel figurines in the #147;toys and games#148; category, for example.
eBay gives the following examples of #147;categorization#148; violations that specifically relate to books:
#147;a cookbook should be listed in the books category, not in sports memorabilia#148;;
#147;a book about Royal Worcester china should not be listed in the category for Royal Worcester china#148;.
The first one makes good common sense, but I can sympathize with a lot of eBay sellers who foul up on the second one. If you#146;re selling a collector#146;s guide to antique mechanical banks, why shouldn#146;t you be able to list it in the #147;mechanical banks#148; category, as many inexperienced collectors might not even be aware there is a guide to their hobby they can find in the #147;books#148; category? Still, it#146;s eBay#146;s rule, and you gotta play the game their way.
The fact that you#146;re not getting a response from eBay#146;s customer service team means one of three things:
they#146;re still not satisfied that you understand the #147;categorization#148; policy;
you are violating other eBay policies in your listings (for example, you are listing adult-themed books in the #147;books#148; category instead of the #147;Everything Else: Mature Audiences#148; category) and they don#146;t have the time or inclination to tell you what you#146;re doing wrong; or
you haven#146;t tried hard enough to make contact with a human being at eBay who can solve your problem.
You can call eBay#146;s customer support team at 1-800-717-EBAY from 6am - 9pm, Pacific Time, 7 days a week. You can also contact eBay via e-mail, by clicking on the #147;Live Help#148; link on the eBay homepage and then clicking on #147;Account Suspension#148; (in your case), but I wouldn#146;t use e-mail. Clearly, in the words of the immortal late Steve McQueen, #147;what we have here is a failure to communicate#148; #150; you need to get hold of a human being that speaks English and let them know how important this issue is to you.
And do a little soul searching: if you sold over $100,000 last year on eBay, they made a ton of money in fees off of you. eBay is a very rational business, and I strongly doubt they would kick you off the site, blow off your phone calls, and cut off that revenue stream without a really good reason. Might you, just possibly, have been doing other icky things on the eBay site that got them really angry? Just a thought . . .
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:02Z
Making Sure You Get Paid On Time, Every Time
Staff
http://www.DrLaura.com/b/Making-Sure-You-Get-Paid-On-Time,-Every-Time
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2010-05-07T08:51:00Z
2010-05-07T08:51:00Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Making Sure You Get Paid On Time, Every Time
By Cliff Ennico
www.creators.com
"I am a marketing consultant who gets a lot of business, mostly from small companies in far-flung locations around the country, through referrals. Lately it seems like every account has turned problematic for me - the clients pay late, or not at all, and still they expect me to perform my services on time. I realize these are smaller businesses and they have to be careful about cash flow, but still, I can't pay my bills if my clients don't pay theirs on time. How can I do a better job of getting their attention so that I don't have to stay on top of them all the time?"
When you're in business for yourself, nothing - and I mean nothing - eats at your insides like clients who don't pay their bills on time. The best time to deal with delinquent accounts is before they happen, and you should never treat someone who owes you money with "kid gloves". By showing your customers you have zero tolerance for late or missed payments, and making sure you have your customers' respect (with a little fear thrown in), you will get paid a lot faster, and will spend a lot less time chasing down receivables.
You never will get rid of problem accounts entirely, of course, but here are some tips for keeping deadbeats to an absolute minimum.
Get a Retainer Agreement. It's amazing to me how many consultants fail to get written agreements with their customers before they begin work - especially in a situation like yours where there is no pre-existing relationship between you and your client. A simple one or two page agreement sends the client two very important signals:
this is a business relationship - while you are a nice person, you are not their "friend" who will wait indefinitely to get paid while other, nastier people get their money on time; and
this is a legal contract that you are prepared to sue over if the client tries playing games.
The agreement should state clearly your hourly fee, how frequently you will invoice the client, when invoices are payable, and that interest "at 18% per annum or the highest rate allowed by law, if less" will be charged on any overdue invoice. Be sure to include a statement that you will stop work the minute there's a payment problem, and will retain ownership of all materials you have prepared for the client, with the right to sell them to other clients, including the client's competitors. An attorney should not charge more than one hour's time to prepare a "master form" retainer agreement you can revise slightly for each new client.
Get an Advance. In consulting deals, the client always, always, always must pay you something up front as an advance against future invoices. Do not work with any client who refuses to prepay at least the first few hours of your consulting time. The sooner clients get into the habit of writing you checks, the better.
Make the Advance "Evergreen". Your retainer agreement should contain language allowing you to require the client to continue paying in advance for services once the initial advance has been paid down. This is called an "evergreen" retainer, because you always have money in your checking account to apply against your future invoices, and is especially important when the client is out-of-state and your invoice amounts are relatively small. If the client objects, you can change the language to require payments in advance only in the event the client fails to pay one of your invoices on time.
Do Some Diligence. A bank or employer would ask for referrals. Why shouldn't you? Insist on talking to at least one other consultant who's worked for them in the past couple of years.
Avoid Crazy People. Be alert for signs of instability, eccentricity or just plain weirdness that signals the lack of a professional approach to business. For Example, Be Suspicious Of Any Person Who Sends You E-Mails In Which The First Letter of Every Word Is Capitalized (As In This Sentence).
Get the Referral Source on the Hook. Before contacting a client that has been introduced to you via a referral, get the referral source to send you a letter or e-mail confirming that he or she is making the referral, and stating ("to the best of my knowledge") that he or she believes the referral is creditworthy and can live up to its obligations.
That way if the relationship with the client sours, you have solid ammunition to remind the referral source that he is at least partially responsible for the mess you are in. While the referral source won't pay your outstanding bills, and isn't legally obligated to do so, playing on his guilt should motivate him to bring pressure to bear on the deadbeat client to "do the right thing" if the referral source has greater leverage over the client than you do.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:51:00Z
More Taxing Questions From Internet Retailers
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http://www.DrLaura.com/b/More-Taxing-Questions-From-Internet-Retailers
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2010-05-07T08:50:58Z
2010-05-07T08:50:58Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>More Taxing Questions From Internet Retailers
By Cliff Ennico
www.creators.com
The following questions came up during a Webinar I hosted last week for Avalara Inc., a Seattle, Washington based company that specializes in sales tax compliance solutions for Web-based merchants (www.avalara.com):
"Does a business have to be a corporation or a limited liability company (LLC) to work with wholesalers? Will the supplier be more likely to give the seller an account than if they are a sole proprietor, or does the supplier care at all?"
An online retailer does not have to be a corporation or LLC to buy from suppliers, but it does help. Some wholesalers are reluctant to deal with individual "sole proprietors" because of the risk they will be considered "employees" of the supplier for tax purposes, or of the possibility that the wholesaler will have to send 1099 forms out at the end of each year (more on that below). Also, forming a corporation or LLC makes you look a whole lot bigger than you actually are, and demonstrates to everyone you come into contact with your intention to treat your online selling as a "business" and not as a "hobby".
"Does an online seller need to give Form 1099 to their vendors at the end of the year? What if the supplier is out of the country?"
Online sellers do not have to send Form 1099 to wholesalers with whom they are dealing at arm's length. They do, however, have to send Form 1099s to consignors and drop shippers for whom they act as selling agent, unless (1) the consignor or drop shipper is a corporation, or (2) the total amount the online seller paid the consignor or drop shipper during the calendar year was less than $600. Generally, online sellers do not need to send Form 1099 to overseas vendors if they are not already subject to U.S. taxes (i.e. have no legal presence in the U.S.); if they do have a U.S. presence, then the above rules apply.
"If an online seller wants to source products from a supplier that is based overseas, do they need to obtain a license to start importing products?"
Generally, a federal "import license" is required only to import certain products - basically, the same ones you probably would need a state license to sell if you were selling them domestically (think alcohol, tobacco, motor vehicles and the like). Talk to a "customs broker" or international trade lawyer to find out if any license requirements apply to your business (to find a customs broker in your area, check out
www.ncbfaa.org
).
One exception concerns goods that are subject to trade "quotas" - when importing these you will need to get a license from the exporting country certifying that each shipment is within the annual U.S. quota. If it isn't, you will have to wait until next January when the new annual quota kicks in.
"If an online seller is selling name brand products, how can they make sure that the supplier they are using isn't infringing anybody else's products? Is the process the same when the supplier is outside of the country?"
Ask to see copies of documents authorizing the supplier to deal in brand name merchandise, or contact the manufacturer directly (eBay's "Verified Rights Owner" or VeRO program --
http://pages.ebay.com/help/tp/programs-vero-ov.html
-- can put you in touch with many luxury-goods manufacturers). And use common sense - Gucci does not authorize manufacturers in rural China to license their products to eBay sellers in the U.S. When in doubt, assume that the supplier is dealing in illegal "knockoffs", and source your product elsewhere. Also, when dealing with factories in the developing world, make sure they are not using prisoners or "slave laborers" in their manufacturing operations.
"What are some big mistakes online sellers make when trying to negotiate with suppliers?"
First, failing to negotiate at all. Too many small businesses assume that their suppliers' prices are non-negotiable when they order in small quantities, and it's just not true. Many suppliers - especially overseas - will not take you seriously as a retailer if you do not attempt to negotiate their prices.
Second, assuming that the price is the only negotiable item. Even if a supplier stands firm on its price for certain goods, you might be able to negotiate the shipping, delivery, warranty and other "noncash" terms and conditions. For a checklist of negotiable items in a typical wholesale purchase, see the contract forms at the end of my latest book, "The eBay Seller's Tax and Legal Answer Book".
For a good basic negotiating guide, see the chapter on "Negotiating" in "Start Your Own Business", edited by Rieva Lesonsky.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:58Z
When Buying From Wholesalers, Watch Your Taxes
Staff
http://www.DrLaura.com/b/When-Buying-From-Wholesalers,-Watch-Your-Taxes
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2010-05-07T08:50:56Z
2010-05-07T08:50:56Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>When Buying From Wholesalers, Watch Your Taxes
By Cliff Ennico
www.creators.com
The following questions came up as I was interviewed last week on Product Sourcing Radio (
www.wsradio.com
), an Internet radio program hosted by executives of Worldwide Brands, Inc. in Orlando, Florida (
www.worldwidebrands.com
):
"We constantly tell online sellers that to buy from a genuine wholesaler, they need to have a state sales tax ID number. Why is this the case?"
Generally, there is no sales tax on wholesale purchases of inventory. A wholesaler needs evidence that you are not buying stuff for your personal use, and are required to charge you sales tax unless you deliver a "resale certificate" to them - basically, an affidavit swearing on your Great-grandmother's grave that you are buying stiff with the intent to resell it. You can find a copy of your state's Resale Certificate form at your state tax authority's website (to find it, go to
www.taxsites.com/state.html
), under the "Forms and Publications" link.
The resale certificate form will require you to provide the wholesaler with your state tax ID number (also commonly known as a "sales tax number" or "resale number"). You will need to obtain this from your state tax authority before you can legitimately buy goods at wholesale.
"What about states that don't have sales taxes? Maybe the retailer is in a state with no sales tax, but the wholesaler is. Or the retailer or wholesaler is in a state with no sales tax, but one of them has a presence in another state that has a sales tax. How can an e-tailer find out what they need for their own unique situation?"
Generally, sales tax must be collected by the "vendor" - in this case, the wholesaler. If the wholesaler is in a state with no sales tax, then they will not need to charge sales tax when selling to retailers anywhere in the world. If the wholesaler is in a state with a sales tax but is selling to an out-of-state retailer, the transaction is an "interstate sale" and therefore exempt from tax (at least under current law). However, the wholesaler may still ask for a Resale Certificate as proof that the out-of-state retailer is a legitimate business.
"If a wholesaler is in a state with no sales tax, what can a retailer do to verify that they are, in fact, dealing with a legitimate wholesaler?"
If the wholesaler is a corporation or limited liability company (LLC) - most will be - ask for a copy of their Certificate of Incorporation or Articles of Organization, with proof that the document was filed with the Secretary of State's office in the wholesaler's state. In most states, you can get this information online by searching the wholesaler's company name on the state Secretary of State's website. Checking the wholesaler's local Better Business Bureau or Chamber of Commerce website can't hurt, and you should always Google the company name to see what people on the Web are saying about them.
"A lot of e-commerce businesses use fulfillment houses to warehouse and ship their products to their customers. If your fulfillment house is in another state, then does your business have a presence or 'nexus' in that state for tax purposes?"
It depends on (1) who issues the invoice and (2) what address appears on the shipping labels. If you allow the fulfillment house to issue invoices under your name but with their shipping address for returned items, then you might well have a "nexus" in the state where the fulfillment house is located. Always, always, always use your own shipping labels and invoice forms when dealing with out-of-state fulfillment houses so this doesn't happen.
"Let's say that a retailer and a wholesaler are both in states with no sales tax. The wholesaler obviously will not need a sales tax ID number, but they will want proof that the retailer is a legitimate business. What kind of proof does the retailer need to provide?"
Most wholesalers will accept copies of any of the following:
if you are an LLC or corporation, your Certificate of Incorporation or Articles of Organization, with the confirmation of filing with your state Secretary of State's office;
the letter you received from the IRS awarding you your federal tax ID number; or
a DBA ("doing business as") certificate, with the confirmation of filing with your county or town clerk's office.
"What is a business license, and when does an online retailer need one?"
I'm not aware of any state that requires you to obtain a "license" just for the privilege of running a business (although you may need a license to sell certain goods or engage in certain professions). In many states, the term "business license" can refer to any of the following:
the DBA certificate you file with the county clerk's office;
the state "sales and use tax permit" that entitles you to collect sales taxes; or
in states with no sales tax, the document by which the state issues your state tax ID number.
Whether or not your state has a sales tax, you are required to register any new business with your state tax authority. The document you get back from the tax authority when you register is probably your "business license".
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:56Z
Growing A Business Beyond The Initial Startup Stage
Staff
http://www.DrLaura.com/b/Growing-A-Business-Beyond-The-Initial-Startup-Stage
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2010-05-07T08:50:54Z
2010-05-07T08:50:54Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Growing A Business Beyond The Initial Startup Stage
By Cliff Ennico
www.creators.com
I had the privilege of participating in an all-star panel discussion on "Getting a Grip on Rapid Expansion" at last week's New York Times Small Business Summit in New York City. Joining me on the podium were Select Wines LLC founder John D'Aquila, Garage Tek founder Marc Shuman, and Paula McCoy-Pinderhughes, author and former small business editor of Black Enterprise magazine.
Here are some insights I and the other panelists offered to the more than 500 attendees.
"When You're Growing a Business, It's All About Growing Revenue." It sounds pretty trite, but a lot of entrepreneurs forget that "growing a business" is all about growing the "top line" of the income statement - gross sales or gross revenue. You can boost your operating efficiency and profitability (the "bottom line") by cutting costs, but if you're not taking steps to grow your revenue, you are not growing your business in any meaningful sense.
So how do you grow revenue? Simple. There are only two ways. Either you increase the prices you charge for the goods and services you are already offering, or you sell more goods and services. Let's look at each strategy.
Raise Your Prices. A lot of entrepreneurs believe they can't do this, because they're in a tightly competitive market. But if you can persuade your market that they're getting extra "value added" for their money - something more than your competitors are offering - you can charge more with a perfectly straight face and the market will gladly pay more. For example, you can hire a local interior designer to redo your bathroom for about $100 to $150 an hour in most places, but if you ask Martha Stewart to redesign your bathroom she's going to charge a whole lot more than that. Why? Because you are now not just buying a new bathroom; you are buying the bragging rights of telling the world that your bathroom is a Martha Stewart original design. Frankly, you should pay a lot more for that.
Sell More Stuff. Find new domestic and (especially) international markets for your products and services - there are huge markets in Africa, Asia and Latin America for things you would have trouble giving away in the United States. Also, find new uses for your products and services. Arm Hammer Baking Soda was originally used to bake cakes (and can still be used that way), but its most popular use today is as a refrigerator and appliance deodorant. Look to see what your customers are actually doing with your stuff once they buy it - and brace yourself for some interesting surprises.
"Understand the Three Commandments of Growing a Business". I call these the three "ates" because each word ends in the letters "ate". Here they are:
Automate. At some point it becomes impossible for your management team to run your business day to day. You will have to create systems to run the business, and train your management team to run the systems. Use technology wherever possible to operate the systems so as to free your management team's time up for creative and strategic thinking.
Delegate. Hire employees, train them well, and learn how to supervise their activities without doing their work for them. It's not easy, but you can't grow a successful mail-order business if you're packing boxes six hours a day. Anyone who's ever read Michael Gerber's classic book "The E-Myth Revisited" knows what I am talking about here.
Concentrate. Startup businesses tend to do too many things for too many different customers. Find out what it is you do best, or what your customers are paying the most for, extend those lines of business to create an identifiable brand, and be ruthless enough to cut out product and service lines that are dragging down your performance. A business can be so well-rounded that there's no point to it - if one or two product or service lines are accounting for more than 75% of your total business, spend all your time building on those and delete the rest.
Finally, beware of Murphy's Law: "anything that can go wrong will go wrong". Whenever you are offering multiple products and services, the ones your customers seem to want the most (and generate the most profit for your business) are usually the ones you are least excited about providing. Don't become emotionally attached to any product or service you offer. This is a business, not a baby, and if something isn't making you money you shouldn't be wasting your precious time doing, making or servicing it, even if it's enjoyable or self-fulfilling. Let it die (or do it as a hobby, if you have time), and build your business on what works.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:54Z
Getting Started In An Import/Export Business
Staff
http://www.DrLaura.com/b/Getting-Started-In-An-Import/Export-Business
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2010-05-07T08:50:52Z
2010-05-07T08:50:52Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Getting Started In An Import/Export Business
By Cliff Ennico
www.creators.com
"I'm 27 years old, Mexican-American, born and raised in Mexico City and have lived in the U.S. for the past 10 years. I've always worked for a company and have never been self-employed. I recently lost my job and I am looking; however, in the meantime, I want to sell some things on eBay to pay off some of my expenses and also find a way to sell gourmet foods for people I became friends with from my former job and make commissions. This would mean I would be working as a broker. However, I do not have experience working on my own.
I met a person at a trade show back in July that is president of a small company in New York that imports gourmet foods and high-end nonedible items from Mexico. He said he can't offer me a full-time position until perhaps the beginning of next year. For now, he said he can offer me $500 a month to pay my travel expenses and a 5% sales commission on the 2 gourmet food items he wants me to sell, but these items were recently introduced to the U.S. food industry and I think it would take at least six months to be able to sell them legally here. He already wants me to work on some things for him, but I don't want to do anything and spend time and money until I have something in writing (contract, agreement, etc). What do you suggest?"
I'm assuming, first of all, that you are either a U.S. citizen or "green card" holder. If you are neither, you should talk to a good immigration attorney before getting involved in any U.S.-based business.
You should enter into a sales representative agreement with the New York company with the following important provisions:
you should be entitled to commissions whenever the New York company accepts an order from a customer you have introduced to them;
commissions should continue to be payable on all sales to customers you have introduced to the New York company, whether or not you generated those specific sales, as long as the agreement is in effect and for a period of one year thereafter; and
a statement that the New York company is solely responsible for ensuring that all food products "comply with applicable U.S. laws and regulations", including U.S. Department of Agriculture (USDA) and U.S. Food, Drug and Cosmetic Administration (FDA) rules.
If you are sued because one of their products violates U.S. laws and regulations, they should "indemnify" you (pay your defenses and protect you against loss) for that.
"An acquaintance of mine has a restaurant and started a couple of years ago with an import/distribution business with gourmet foods from Argentina. He said he wants me to be his partner so he can focus more on the restaurant business. I've never been offered a partnership before. He wants my sales/distribution knowledge in return and assures me that I wouldn't spend any money to own part of his business, because he knows I don't have money. I told him to write me a proposal and he said he had no idea what to write in it. I'd like to know what to expect in a contract/proposal, so that I make sure he's not going to cheat on me."
First of all, I wouldn't enter into an informal partnership with this person. Instead, I would insist on forming a limited liability company (LLC). That way, if he does something bad, your personal assets are protected from liability, and vice versa.
You should have a lawyer draft a formal Operating Agreement for the LLC with the following important provisions:
that the LLC will engage only in the import and distribution business;
that the restaurant owner "assigns" to the LLC all contacts, information, data, knowledge and know-how relating to the Argentine food import business;
that the restaurant owner will not engage in any import or distribution business other than through the LLC;
that you will not engage in any import or distribution business that "directly competes" with the LLC's business, but are otherwise free to engage in import and distribution activities (for example, as an employee of a large company);
that the two of you will share all profits and losses 50/50 (or however else you agree);
that the two of you will take monthly distributions after paying all LLC operating expenses; and
that the LLC will dissolve upon one of you "withdrawing" from the LLC (for example, to take a full-time job).
For more information on getting started in an import/export business, check out international trade consultant Laurel Delaney's free e-newsletter at
www.globetrade.com
.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:52Z
Why Can't A Woman Be More Like An Entrepreneur?
Staff
http://www.DrLaura.com/b/Why-Cant-A-Woman-Be-More-Like-An-Entrepreneur
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2010-05-07T08:50:50Z
2010-05-07T08:50:50Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Why Can't A Woman Be More Like An Entrepreneur?
By Cliff Ennico
www.creators.com
"I'm a big fan of your column, but you don't say much about the special problems women face when they start their own businesses. Do you have any suggestions or tips on how a woman can succeed in what has traditionally been a 'man's game'?"
I'll do a lot better than that.
It's no secret that women are launching businesses at twice the rate of men. In fact, women-owned businesses are the fastest growing segment of the U.S. economy. But here's the rub: fewer than three percent (3%) of the country's women-owned businesses gross a million dollars or more in revenue.
To address this imbalance, I can do no better than to refer you to my good friend Susan Wilson Solovic, the CEO and Chairman of SBTV.com, the first video news and information destination site for America's small businesses, and the author of a new book, "The Girls' Guide to Building a Million Dollar Business" (AMACOM, $21.95).
[Full disclosure: I am not an impartial observer when it comes to Susan's work. I am currently the Legal Editor of SBTV.com, as well as the co-host with Susan of an Internet radio show on VoiceAmerica.com. But just because someone's my friend doesn't mean I can't applaud when she does something really, really good. Besides, I can give you my personal assurance she has "walked the walk" more than the vast majority of business book authors ever have.]
Susan's book is an essential read for anyone -- male or female - who wants to grow their business beyond the "Mom and Pop" stage. And it's unique. Most people writing "women in business" books have a "Scylla and Charybdis" problem (for those who have forgotten their Greek mythology, go to (
www.2020site.org/ulysses/scylla.html
for a quick refresher before you read further) - steer your boat too far one way, and you fall into the trap of saying that "women must act more like men to succeed in the business world"; steer too far in the other direction, and you find yourself falling into the opposite trap by saying that "women can find success by embracing their femininity and rejecting a male paradigm for their businesses."
Building on the success of her previous book, "The Girls' Guide to Power and Success," Susan avoids both "traps" by highlighting those things that all entrepreneurs - male or female - must do to grow their businesses, in a way that doesn't make those things seem particularly "masculine". Some of Susan's key points:
Developing the right team - Susan rightly points out that "an owner of a small company can be one of the gang; as you grow your business, however, you need to act, look, think like and BE the CEO - the leader, the boss."
Creating a unique market strategy through "branding" - don't try to do everything for everybody, but focus on what it is you really do best and build a name for doing it better than anyone else.
Securing the essential funding - in Susan's words, an entrepreneur must "take full advantage of commercial loans and lines of credit. Get comfortable using other people's money. Dare to venture into venture capital."
You don't need testosterone or a Y-chromosome to do any of this, folks. In her book Susan gives some amazing examples of successful female entrepreneurs like Gayle Martz, CEO of Sherpa, innovator in pet travel bags; Dany Levy, founder of DailyCandy.com; Maggie Laughlin, who started her own specialty advertising services firm at age 23; and Rebecca Boenigk and Jaye Congleton, the mother-daughter team behind a booming ergonomic chair manufacturer.
"There's nothing wrong with being ambitious and making money," Solovic stresses, urging every woman to believe in one powerful statement: I DESERVE TO BE SUCCESSFUL. "It's your time and your turn," she assures her readers. "Be among the ranks of women who are living the lives they so justly deserve. This book will give you the tools, the insight and the resources you need. The rest is up to you."
Amen. And guys, don't be afraid to pick this book up. You might learn something.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:50Z
Can I Sell This Stuff On eBay? Part II
Staff
http://www.DrLaura.com/b/Can-I-Sell-This-Stuff-On-eBay--Part-II
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2010-05-07T08:50:48Z
2010-05-07T08:50:48Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Can I Sell This Stuff On eBay? Part II
By Cliff Ennico
www.creators.com
Q:"Last week I went to a local garage sale, and there was one family that was selling about 75 carousels of photographic slides some of their relatives took when they traveled around the world in the 1960s and 1970s. I made an offer of $20.00, and they accepted it. When I got home I realized I had bought over 10,000 slides of cities, landscapes and countrysides. I have seen people on the Internet hawking the idea that you can make good money weekly taking photos and uploading your photos to various Websites. You are paid a commission when someone buys a copy of your photo. I guess this would be the same as selling clip art. My question is: are there legitimate companies doing this or is this just another Internet scam? Can I get into trouble doing this?"
A:Technically (and legally), the person who takes a photo owns the copyright to it - literally, the "right to make copies" and profit from licensing the image to others. Unless the photographer assigns his copyright to someone else, he or she retains it for the appropriate copyright period (currently very generous, basically the life of the photographer plus 50 years, but you would have to look at the copyright law in effect at the time the photos were taken). Technically, while the family probably had the legal right to sell you the actual physical slides (which were given to them as gifts, or inherited when the original photographer died), they had no legal right to assign the photographer's "copyright" unless they were the actual photographer and intended to do so.
If you want to resell the actual slides on eBay, that probably won't be a problem. You will have to make clear, however, that you are not the photographer and cannot assign the "copyright" to them - a simple statement such as "reproduction of these photos without the photographer's permission is strictly prohibited" should be enough. You should also consult eBay's listing policy regarding selling copyrighted material, which can be found at
http://pages.ebay.com/help/tp/copyrights.html
.
So what about setting up a "photo bureau" (that's the technical name of the Internet operation you describe) and licensing these images for a few pennies apiece? Here's the law:
unless these photos are very, very old (anything pre-1910 is probably okay), they are probably not in the "public domain" as yet - someone owns the copyright to them, and will probably complain, by having their lawyers send a nasty "cease and desist letter", or using eBay's Verified Rights Owner (VeRO) program, if they discover unauthorized sales on eBay or elsewhere;
if the photos contain images of persons, they cannot be sold or licensed without the persons' permission - any photos depicting family or tour group members should be returned to the family that sold you the slides;
if the photographer is known, he or she should be given credit each time a photo is reproduced - so, for example, "photo by Cliff Ennico"; and
if the photographer is not known, then the person who sold these photos to you should be given credit - for example, "photo courtesy of the family of Cliff Ennico" or "reprinted with permission of the Ennico family".
The likelihood of anyone complaining is pretty remote in this case, but any reputable publisher or author will not download a photo from a "bureau" unless it has a photo credit and a copyright notice. I would never do this for any of my books, because then the publisher would make me prove that I had the right to reproduce the photo. Anyone downloading photos without proper credits and copyright information is looking to rip off the copyright owner, and any service providing such photos (on the Web or anywhere else) is a "scam".
Go back to the family who sold you the photos, explain what you're planning to do with them, and get them to sign a one-page agreement assigning their copyright to you in exchange for a penny or two each time one of the photos is downloaded online. That way you can put credits and copyright notices on these photos and "legitimize" them. If the original photographer finds out and complains that the deal wasn't authorized by him, you will have some legal recourse against the family members who sold you the photos, you can offer the photographer the same deal in exchange for a copyright assignment, or you can simply remove the photos from the Web and go on with your life. After all, you're only out twenty bucks.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:48Z
Getting Along in the Office: How to Leave Messages, and Meet and Greet
Staff
http://www.DrLaura.com/b/Getting-Along-in-the-Office:--How-to-Leave-Messages,--and-Meet-and-Greet
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2010-05-07T08:50:47Z
2010-05-07T08:50:47Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Getting Along in the Office: How to Leave Messages, and Meet and Greet
By Ruth Haag
www.RuthHaag.com
Our modern messaging technology is so nice and quick that we have fallen into a too-casual usage of it, which often makes it difficult for the message recipient.
This casualness has spread to meeting people face-to-face, where an assumption is made that everyone recognizes and remembers the name of everyone else.
Some Bad Message Examples
An E-mail read:
"Just fax the invoice to me and I'll take care of it."
What was the fax number, I wondered? I E-mailed back with the question.
The next E-mail read:
"The fax number is on the bottom of the E-mail."
But it wasn't. I E-mailed this back.
The last E-mail read:
"It was on the bottom of the E-mail that I sent you last month."
Sigh. Why couldn't she have just sent the fax number to me with the first E-mail?
A voicemail message said:
"Give me a call back at my office."
But I was out of town with my cell phone, and did not know their office number.
A voice mail said:
"Hi, it's Jen."
But I couldn't remember who Jen was.
A person sees me coming in the door and calls out:
"Hi, Ruth."
Who could that possibly be? I wonder. I meet many new people each week. Did I meet this person, or did they see my name and picture somewhere?
Polite Modern Communication Rules
There are a few simple rules that will take you from being the annoyance with your voice mails, E-mails, and face-to-face meetings, to being a helpful and polite person.
For Voice Mail Messages:
Always give your complete name, and the name of your company
If it is someone who might not know you, reiterate where you met
Leave your telephone number twice, once at the start and once at the end
Make the message brief but to the point
For E-mail messages:
Always lead off by reiterating the topic that is being discussed
Always attach all of your contact information at the end
Use complete sentences, and punctuate properly.
For Face-to-Face Meetings:
Stick out your hand for a handshake, stating your name, your company name and why the person might know you
Don't use someone's name unless you are sure of it
About the author: Ruth Haag (
www.RuthHaag.com
) helps managers and employees understand the dynamics of the work environment, and how to function smoothly within it. She is the President/CEO of Haag Environmental Company. She has written a four-book business series: "Taming Your Inner Supervisor", "Day-to-Day Supervising", "Hiring and Firing", and "Why Projects Fail." Her enjoyable, easy-to-read books provide a look at life the way it is, rather than the way that you might think it should be. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:47Z
Building Credibility As A new Seller On eBay
Staff
http://www.DrLaura.com/b/Building-Credibility-As-A-new-Seller-On-eBay
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2010-05-07T08:50:45Z
2010-05-07T08:50:45Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Building Credibility As A new Seller On eBay
By Cliff Ennico
www.creators.com
Q:"I have just started selling on eBay but no one will buy from me because my feedback score is zero. How can I get my feedback score up to 20 so that people will begin buying from me?"
A:This is probably one of the biggest challenges for "newbie" eBay sellers. Most buyers will be hesitant to buy from a seller with a low or "zero" feedback score. To sell fixed-price items using eBay's popular "Buy It Now!" feature, a seller has to have a feedback score of at least 20. So how can an eBay seller reach that number?
Here are some tips from leading eBay experts:
begin by selling inexpensive items on eBay, on the theory that buyers are more likely to take a risk on a "newbie" seller if it's only a $5 item, whereas people will not take the risk of buying a $100 item from a "newbie" seller;
if that doesn't work, buy 10 or 15 low-priced items on eBay and pay for them promptly so you generate positive feedback - eBay's feedback system distinguishes between a user's selling and buying activity, but many buyers (regrettably) will look only at the overall feedback score without digging into the details - once the desired feedback score has been reached, stop buying and use the User ID exclusively for selling so the "buying" feedback fades into the background;
do everything possible to give buyers "warm fuzzies" that you're okay to deal with, such as qualifying for PayPal's "buyer's protection plan", "ID Verifying" your eBay User ID, creating a detailed "About Me" page, posting a "blog" describing the merchandise you are selling, and using only a "verified" address and a "confirmed" account on PayPal; and
get involved in the eBay community - create an "About Me" page that tells people all about your business, and get involved in eBay's community chat rooms, discussion groups and "social networking" areas so other eBay sellers will vouch that you are "for real" - the "fraudsters" on eBay don't take the time to do that.
Last but not least, do everything you can to avoid negative or neutral feedback on eBay. People generally won't buy from people with a feedback score less than 50 unless their "positive" eBay rating is 100%. Bend over backwards to give your buyers the best service you can, and prepare yourself for the possibility you may have to let a bad buyer "win" every once in a while to preserve your precious "100% positive" rating.
Q:"How can I quickly establish credibility as an eBay seller?"
A:Building up your feedback score as an eBay buyer and seller is the most obvious way to quickly establish credibility on eBay. Here are several other tips, courtesy of eBay Certified Education Specialist and "PowerSeller" Jack Waddick of Chicago, Illinois (
www.oakviewtraining.com
):
Create a Free eBay "About Me" Page. Tell a little about who you are, what you sell, your level of interest in the products you sell, maybe even a little about why you are selling the things you are selling. ("Grandma just passed away at 98 after 73 wonderful years of collecting Hummels . . . ")
Write eBay Reviews and Guides. If you have experience (good or bad) with a particular product (that you are selling or not) write an eBay Review and share that experience with others. If you have expertise in a certain area (coins, golf equipment, computers,) write an eBay Guide and share that particular expertise with other eBayers. Review and Guides help you establish credibility and build trust with the eBay community, which could help convince some people that you are the best person to be buying these items from.
Use a Short Video. Including a short video in your eBay "About Me" page can be a great ice breaker and a nice way to warm up the online experience by adding a smiling face to that eBay User ID. For items that typically lend themselves to a demonstration, including a short video in your eBay listing (for free) is like stepping right in to that buyer's home with your product. If a picture is worth 1,000 words, what is a one-minute demonstration video worth?
For a useful guide to creating videos for eBay, get the one-hour DVD "Add Video to eBay Auctions" by Cindy Shebley ($29.99, Ghost Leg Productions,
www.ghostleg.com
).
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:45Z
Can I Sell This Stuff On Ebay? Part I
Staff
http://www.DrLaura.com/b/Can-I-Sell-This-Stuff-On-Ebay-Part-I
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2010-05-07T08:50:44Z
2010-05-07T08:50:44Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Can I Sell This Stuff On Ebay?
By Cliff Ennico
www.creators.com
Q:"What are the rules when it comes to selling trademarked or branded items, such as Gucci handbags or Tiffany jewelry, on eBay?"
A:eBay's rules about trademarked items are simple to state, but difficult as the Dickens to apply in practice. Even experienced eBay sellers make mistakes in this area. The rules are basically these:
you cannot sell knockoff or counterfeit items on eBay - never, ever, ever, world without end, Amen;
it's up to you to determine if an item is genuine or not;
eBay won't help you determine if an item is genuine or not;
if the manufacturer or owner of the brand or trademark wants your listing terminated because they think you are not selling genuine merchandise, even if you are, eBay will shut down your listing and, for repeated violations, kick you off of eBay;
you cannot hold yourself out as an authorized reseller of a manufacturer unless you truly are one; and
if you have questions about whether an item is genuine or not, eBay wants you to talk directly to the "rights owner" or manufacturer about it, and has set up a program called VeRo (for "Verified Rights Owner") to help you do just that.
Details of eBay's VeRo program can be found at
http://pages.ebay.com/help/tp/programs-vero-ov.html
. Many leading manufacturers participate in eBay's VeRo program, but offer little guidance to eBay sellers in determining whether an item is genuine or not. When you click on a manufacturer's "About Me" page in the VeRo section of eBay's website, many just repeat eBay's rules about not selling counterfeit or knockoff items with their brand names and trademarks on them, and warn you of the perils of doing so.
eBay does require participants in the VeRo program to give you an e-mail address where you can ask questions about their merchandise, but don't hold your breath waiting for your e-mail messages to be answered. There are some very good business reasons why manufacturers and brand owners won't go out of their way to help you sell their merchandise on eBay, among them the following:
many luxury-goods makers view eBay as a liquidation or "flea market" venue, and do not want their brands sold there under any circumstances for fear of tainting their brands' marketing image;
many manufacturers want to protect their distribution channels from low-cost competition from eBay sellers;
many manufacturers, especially of luxury goods, do not want to see an aftermarket in used (but genuine) merchandise competing with their new high-margin offerings; and
many manufacturers want to avoid lawsuits and negative publicity from buyers who are angry with their eBay purchases (because of irresponsible or inexperienced sellers) and claim that the manufacturers have "aided and abetted" the eBay seller's actions.by encouraging sales on eBay.
There are also some very good business reasons why eBay won't do more to help you sell branded merchandise on the site:
eBay views itself as a "marketplace" or "platform" on which transactions take place, and is legitimately concerned about jeopardizing its "neutral" status by taking sides between sellers and trademark owners; and
eBay is petrified (and rightly so) by the prospect of being sued by powerful Fortune 500 corporations (such as the parent corporations of Gucci's and Tiffany's) with deep pockets and big-name law firms behind them, and will bend over backwards to avoid offending these companies.
To begin your education on eBay's brand-name merchandise policies, begin with eBay's "Guidelines for Creating Legally Compliant Listings" (
http://pages.ebay.com/help/tp/compliant-listings.html
). Then take eBay's "tutorial on Intellectual Property Policies and VeRO" (there's a link to that on the above page, but you will have to sign in using your eBay User ID and password to take the tutorial). Finally, review eBay's VeRO page and read the "frequently asked questions" that are posted there:
http://pages.ebay.com/help/policies/questions/vero-ended-item.html
. You now know as much as anyone does about selling brand-name merchandise on eBay.
The bottom line is that when you sell brand-name merchandise on eBay without the manufacturer's permission or authorization, you are taking a risk, and will have to expect that occasionally eBay will terminate one of your listings even if you are convinced that the item is genuine. If you bought the item yourself, post a photo of your purchase receipt on your eBay listing (blacking out any personal information, of course). And remember . . . if a deal seems "too good to be true", it probably is. That "genuine Gucci handbag" you bought from a store in a back alley of Rome for 50 Euros (about $69) is almost certainly not genuine - don't even think about selling it on eBay!
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:44Z
Finding Romance -- And Inventory -- In The Far East
Staff
http://www.DrLaura.com/b/Finding-Romance----And-Inventory----In-The-Far-East
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2010-05-07T08:50:42Z
2010-05-07T08:50:42Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Finding Romance -- And Inventory -- In The Far East
Cliff Ennico
www.creators.com
"I'm an eBay PowerSeller, and would love to be able to order products directly from the overseas manufacturers, especially in China, to sell on eBay, but I'm afraid I don't have the skills to handle the negotiations myself. Is there any place that can help me make contact with manufacturers AND help put the deals together?"
If you are new to importing, and don't have any import experience, your best resource for sourcing product from China or elsewhere in Asia is Worldwide Brands, Inc, based in Orlando, Florida (
www.worldwidebrands.com
). Worldwide Brands offers you the ability through their OneSource#8482; database to purchase through direct import buyers. These are companies who set up warehouses within the United States to have the product imported from manufacturers in countries such as China. These companies handle all the importing arrangements and you purchase directly from the distributor within the United States. This way you don't have to be concerned about handling the import logistics or the manufacturer negotiations.
According to Peter Zapf, Vice President of Community Development for Global Sources (
www.globalsources.com
), eBay sellers looking to source product directly from Asia should consider three services:
(a) Global Sources Direct (
GlobalSourcesDirect.com
): This is an online wholesale site offering product directly from China. That is, you go to the site, select the products you want, put them in your shopping cart, and they are shipped to you via air courier from China so you receive them within ten days. Minimum order quantity is relatively small at one carton. Global Sources Direct is also listed in the WorldWideBrands directory. According to Zapf, it's the easiest way to access China manufactured products because you don't deal with suppliers, quality control or logistics. Global Sources Direct handles all that for you.
(b) Global Sources (
www.globalsources.com
): This website provides a directory of suppliers. Verified suppliers have been physically visited three times or more by Global Sources. You can search for products and suppliers and also work with them directly. The verified suppliers list hundreds of thousands of products in a wide range of categories. Examples of just some of the products are digital photo frames, ATVs, hand bags and vacuum cleaners. According to Zapf, this site is great for folks that either have experience or want to build experience with the import process. Similar to their U.S. counterparts, Chinese manufacturers have varying minimum order quantity requirements, and you will need to contact suppliers to check on their minimum order quantities.
(c) China Sourcing Fairs (
www.ChinaSourcingFairs.com
): Hosted by Global Sources, these trade shows have thousands of Chinese suppliers exhibiting their products. Everyone from big box retailers down to eBay PowerSellers attend these shows in order to find and meet suppliers. The biggest shows are in Hong Kong and include consumer electronics, fashion accessories, underwear and swimwear, and household products. All you need to do is get on a plane and show up. There is no entry fee. According to Zapf, this is a great opportunity to network with other international buyers. In addition, Global Sources also hosts a "Buying From China: What New Buyers Need to Know" seminar at the show. So if you are new to importing, you can learn about buying from China and also meet thousands of suppliers. Hey, it's deductible!
Many eBay sellers buy in small volumes (100 pieces or less). For these volumes, Zapf advises that eBay sellers may want to consider working with trading companies rather than buying direct from China. The advantage of a trading company is that it can act as an intermediary on your behalf and can often handle smaller minimum order quantities. However, Zapf points out, since it hasn't actually manufactured the product, there is a longer chain to go through when getting information about the products.
Many eBayers ask about purchasing products from China with Western trademarks or brands. The owners of these trademarks and brands control their distribution channels closely and don't try to create pricing structures that support cross border grey-market sales. As a result, a fair number of the opportunities you see to purchase such products are, in fact, offering counterfeit products. Selling these will almost certainly get you kicked off of eBay, as well as sued by the manufacturers of these products if they can prove you knowingly imported counterfeit or knockoff goods.
To avoid liability, Zapf says you can ask the seller for proof that they are an authorized distributor, and you can check with the brand owner whether the seller is an authorized distributor. Better yet, avoid Western branded products altogether: "When looking to buy from China, you should be looking for a new and innovative product, a well-priced unbranded product, or a product you can have manufactured in China and put your own brand name on it," Zapf advises. Trust me, there's plenty of stuff to choose from.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:42Z
How to Effectively Present Your Content to Online Editors
Staff
http://www.DrLaura.com/b/How-to-Effectively-Present-Your-Content-to-Online-Editors
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2010-05-07T08:50:40Z
2010-05-07T08:50:40Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>How to Effectively Present Your Content to Online Editors
By Anne Leedom
netconnectpublicity.com
One of the most common misconceptions regarding an online campaign is that editors for this unique medium should be approached in the same manner as traditional radio, TV and print media. Interestingly, nothing could be further from the truth. Let's look at how to approach online editors and what you need to offer to capture their attention and their imagination.
Online editors answer their email. The beauty of an online campaign is the simple fact that these editors are now ACCESSIBLE due to this basic fact. Send your email to the top contact and you will likely make the connections you couldn't in traditional methods.
Online editors are very busy and are choosy about which emails they read. Therefore, the most important part of your online presentation is the 42-character subject line of the email. Say it briefly and say it well.
Online editors do not want you to send attachments, nor do they want to scroll through lengthy emails that include your articles, bios and reviews. Once you have established interest you can follow up with these tools. Your only goal in the initial email is to create interest and inspire the editor to respond. This means a brief email expressing who you are, what you have to offer, and given your research of their website, why they might want your work featured on their site. Answer their question: What is in it for us?
Include links (don't go crazy here) to your site, relevant articles and press releases, etc. in the email presentation. This way they can conduct further research if they so desire without being overwhelmed with a lengthy and time-consuming email. You do NOT want to be placed in the "I better read this later" pile.
Writing an online email presentation allows you to be more personal than traditional methods. Since its very nature is to be brief, it becomes a wonderful tool to follow up on little details you learn about the contact editor and visa versa. The concept of letter writing is a personal form of communication and it can be used very well to your advantage to build a sincere rapport and create camaraderie between you and the editors whom you contact. Even if the editor doesn't immediately respond to your work, through regular emailing you can build the necessary rapport to eventually learn what the editor is looking for and tailor your material to fit their needs.
Avoid any distracting fonts, graphics and bold lettering. Your email should be very professional, very easy to read with short sentences that clearly state what you have to offer and how it is of benefit to the editor you are contacting. The more your email presentation matches the look of the articles on the site, the more the editor will tend to read your email. Above all, check spelling and grammar.
Bear in mind your email presentation should be designed to capture their attention and guide the editor to your site. If you have built your website correctly and featured your content, NOT your product, than they can learn all they need to know about you. If you include too much in your initial email you will end up in the dreaded "I'll read that later" pile.
Follow up on your initial presentation weekly. Editors are overwhelmed with email and it can easily get lost in their desk or even in cyberspace. If they truly do not wish to work with you, most editors will have the courtesy to let you know, especially after a persistent campaign of emails that are pleasant and brief.
Tie in your presentation to current events or seasonal content as much as possible. You many be the best financial advisor in the world and have great information on a variety of topics, but come January the only content the editor may wish to see is content offering tips on taxes.
Overall, a successful online presentation combines quality material presented to the right editor with a knowledge of the website you are targeting and how your material might fit their needs. When this is done well, and it is done in a brief, pleasant, professional and consistent manner, placements can be made on virtually any website. Editors are looking for you to make their job easier and make them look good. Ultimately, offering content that is a strong match for the site's audience will secure a long-term relationship and open doors for greater promotional opportunity within each site.
Anne Leedom founded Net Connect Publicity, an online content management agency for authors, experts and websites who wish to promote their work via the Internet. Net Connect opened in 1999 and handles clients in various topics including parenting, health, business and spirituality. The company is based in the Sacramento, California region. Contact Anne at
anne@netconnectpublicity.com
. In addition to online placements, Net Connect offers traditional media placements in radio and print. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:40Z
What People Really, Really Want When They Buy Online
Staff
http://www.DrLaura.com/b/What-People-Really,-Really-Want-When-They-Buy-Online
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2010-05-07T08:50:38Z
2010-05-07T08:50:38Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>What People Really, Really Want When They Buy Online
Cliff Ennico
www.creators.com
"I'm in the process of setting up a Website to sell antiques and collectibles. I'm not exactly sure what type of merchandise I should be carrying. Do you have any advice on what people are looking for when they shop online, and what sort of content I should have on my Website?"
Oh, boy, do I ever . . .
When people search online, there are four things they are looking for (some people look for all of these, others just one or two).
First, they are looking for information. The Internet is all about "content," and making it accessible to interested people free of charge. Your Website should not just be a "store". It should be a source of information about certain types of antiques and collectibles that people are interested in knowing more about.
And not just any kind of information. I've said it before in this column and will do so again now: everything that appears on your Website should be "cool, compelling content." People these days have short attention spans, and expect to have a measure of fun, excitement or drama when they do stuff online. Your content must be interesting, captivating and entertaining - the sort of stuff people will e-mail their friends about, creating positive "buzz" for your Website.
Second, they are looking for
stuff they can't find in their local stores.
I have a Smith Corona typewriter that I bought in the early 1990s. Because I'm a fairly fast typist, I just find it a lot easier to use an old-fashioned typewriter to address envelopes and create mailing labels than printing them from Microsoft Outlook. Needless to say, I'm not able to find replacement parts, print wheels, ribbon cartridges and correction spools for a 1990s-era typewriter in my local Staples or Office Depot outlet.
So where do I get these typewriter supplies when I need them? eBay! There are several eBay Stores that actually specialize in typewriter parts, and I'm one of their best buyers.
If you're selling antiques and collectibles on eBay (or anywhere else online), do some research and find out if there are any antique or collectible categories that are underrepresented on the Web. Online retailers generally do best when they focus on a "niche" and become known for their knowledge and expertise within that niche. So, for example, you might want to focus your Website on "tobacciana" (tobacco related paraphernalia, usually from the 1800s), or "hippie/counterculture artifacts" from the 1960s.
Third, people are looking online for
stuff they CAN buy at their local stores but at deep, deep discounts.
To put it bluntly, a lot of people online are shopping for wholesale prices; they won't pay retail on eBay or anywhere else online if they can find the products locally at the same price.
If you've got a baby, you need diapers. Lots of diapers. You can always find them locally, and if you need to buy in bulk, there's a Wal-Mart, CostCo or B.J.'s Wholesale Club within a short drive of your home (although no drive is short enough with a screaming infant in the back seat). If people are shopping for diapers online, they are looking for prices that beat even Wal-Mart's "regular low, low prices". If you can source diapers very cheaply, and can offer bulk lots of 50 packages each for half the "big box retail" prices, you probably can find customers for them online. Otherwise, don't sell diapers online.
Fourth, and finally, people are shopping online for
people with like-minded interests.
Social network sites such as MySpace and Second Life are built on the principle that people are still interested in living in "villages" or communities, but no longer strictly geographical ones. Like it or not, the communities of the future are likely to be virtual ones - you will find you have more in common with someone in Timbuktu than you do the person who lives on the other side of the privet hedge in your back yard.
Always have a space on your site where buyers and other visitors can interact with you and each other. This can take the form of a Weblog or "blog", a "community chat room", a "discussion board", or a series of "webinars" on topics of interest to the people who buy from you. If you sell cast iron antiques from the 1800s, for example, you might want to post a request for "tips" from collectors on how to remove rust from these items without damaging them. Trust me, you will get responses, and the search engine "spiders" love stuff like that.
One more thing -- always be sure that everything on your Website is what your customers want to see, not what you think they should see. I read a lot of blogs in my line of work, and far, far too many of them remind me of that old song from the 1970s movie "Midnight Cowboy": "Everybody's talkin' at me, I don't hear a word they're sayin', only the echoes of my mind . . . "
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:38Z
Four WAHM Perspectives
Staff
http://www.DrLaura.com/b/Four-WAHM-Perspectives
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2010-05-07T08:50:36Z
2010-05-07T08:50:36Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Four WAHM Perspectives
Summer Months vs. School Days When Running a Business
Jill Hart
CWAHM.com
School supplies abound in department stores; moms are purchasing new clothes for their grumbling kids and counting down the days until summer ends. It's that time of year again - the back to school frenzy has begun.
This time of year is chaotic for all parents, but it may have the most impact on those who are also trying to manage a home-based business. Most moms say it's easiest to run their business while the kids are at school, but surprisingly there are a few that embrace the juggling act year-round.
Tami Barker
Stayin Home and Lovin It is a fitting name for the business that Tami Barker, mother of two, has found success with. Barker helps educate others about the toxic-free products as well as the Wellness Company that carries them. Working out of her Washington home, she is truly "lovin" life as a work-at-home-mom (WAHM).
Barker, who runs her business primarily by phone, explains that she finds it easy to run her business during the school season. "My kids are older, so it's easier during school months when they are gone most of the day. During the summer I like to spend as much time as possible with them having fun, although I do still have some business hours."
"My business is very flexible, so even during the school year I can be the one that takes my kids to sports and after school activities. I also have the flexibility to go on field trips and help out in the classroom when I can. I always have my calendar by my side to prevent any conflicts with my personal and business schedules."
Lorie Kelley
When asked whether running her business goes smoother during summer months or the school season, Lorie Kelley, feels it's about the same for her year-round. The mother of two children says, "When you have your own business, you make your own hours. I just change my schedule to fit my lifestyle."
Kelley, whose home business is run from her West Virginia residence, works as a travel agent through Coastal Families Worldwide. Despite homeschooling her children, she has built her business up to a place where it can support her family when necessary. Kelley states, "My husband had no work one winter. I was just 5 months into the business, but I was making enough to support us! I thank God for what he has done for my family!"
Gina Neef
Eco-friendly business mom, Gina Neef, agrees that running a business during the school year is as equally demanding as in the summer-time. Neef is an Executive Director with The MOM Team(tm) whose two children both attend public school. "When they are in school running my business is a little easier," Neef says, "but I do manage both well.
Neef's business, which she runs mostly online and over the phone from her Texas home, takes plenty of planning ahead of time to make the balancing act of business vs. family work. "I schedule time with my kids and don't take calls at certain times of the day. I schedule my time well and have great support from my husband," says Neef.
Diana Ennen
Florida-based mom Diana Ennen has worked from home for over twenty years. This experienced WAHM finds the summer months much more difficult in terms of running her business. "My business is much easier to run during the school year." she states, "In fact, even when summer camp is in session, it's still more difficult in the summer."
"As I'm working primarily on the computer, they can't see how busy I am at times. For example, I might be in the middle of a huge publicity blitz for a client who got national recognition and I need to spread the word, but my kids just see me typing. They interrupt and I lose the focus that I had. As a writer it's tough, too, because I could be really into writing a press release or something for a book I'm working on and then they come in and interrupt, I again lose my train of thought and often never get it back."
"You feel like you need to entertain your kids during the summer. Even though I plan ahead and have lots of activities, crafts, etc., they still get bored. It's hard for me to focus on getting work done during the summer months."
ABOUT THE AUTHOR:
Jill Hart is the founder of Christian Work at Home Moms,
CWAHM.com
. Jill is a contributing author in The Business Mom Guide Book and I'll Be Home For Christmas and co-author of the upcoming book, Home Based Blessings. Jill has articles published across the web on sites like DrLaura.com and ClubMom.com. Jill and her husband, Allen of CWAHD.com reside in Nebraska with their two children. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:36Z
The Best "Summer Beach Reading" For Entrepreneurs
Staff
http://www.DrLaura.com/b/The-Best-Summer-Beach-Reading-For-Entrepreneurs
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2010-05-07T08:50:33Z
2010-05-07T08:50:33Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The Best "Summer Beach Reading" For Entrepreneurs
Cliff Ennico
www.creators.com
"I'm a big fan of your column, but I do have one question. I notice that you don't do 'book reviews' very often. I'm looking for some good 'summer beach reading', and would love to hear a list of your favorite business books."
While I refer to business books often in my columns, I don't generally do "book reviews" as such, for two reasons.
First, there are so many new business books coming about that nobody can keep track of them all. Once I start reviewing some of these, I will have to start reviewing all of them, and this will become a "book review" column to the exclusion of everything else.
But more importantly, I don't do business book reviews because I've found that the best books for entrepreneurs have little if anything to do with business per se.
Let me explain . . . .
When you're starting out in your own business, your first and biggest challenge is to get customers or clients. It's the "biggest challenge" because in business you have absolutely no control over the customer and what they want. You can be the greatest business genius since J. P. Morgan, but if you're selling products and services no one wants to buy, you will find yourself in bankruptcy court along with all of the ignoramuses.
Getting customers and generating sales does not require a knowledge of business so much as it does an appreciation of human nature. Virtually all of my most successful small business clients spend a lot of time and effort crawling inside their customers' heads and learning what makes them tick. Show me an entrepreneur that understands how the human mind works, and has a keen understanding of the forces shaping and changing American society and culture, and I will (almost always) show you a successful entrepreneur.
To understand your customers, and spot market opportunities before your competition does, I would strongly suggest you leave the "business" section of your bookstore behind and mosey on over to the "psychology" and "sociology" sections. Very often, the best books for your business can be found there.
Here are some excellent "non-business" books that will help you build a successful business. They are also fun to read.
"Amusing Ourselves to Death: Public Discourse in the Age of Show Business" by Neal Postman. Anybody who wants to understand how American society works today needs to read every book written by Neal Postman. Originally published in 1985 (before the Internet!), this groundbreaking book describes the corrosive effects of television on American society. Postman's theme is the decline of the printed word and the ascendancy of the "tube'' with its tendency to present everything -- murder, mayhem, politics, even weather -- as entertainment.
"Life, The Movie: How Entertainment Conquered Reality" by Neal Gabler. A leading Hollywood historian and biographer of Walt Disney, Gabler takes Postman's thesis a step further and argues that the omnipresence of media in our lives is causing us to lose our grip on reality. Instead of confronting life as it is, Gabler argues, we develop and act out "scripts" as if we were acting in a movie or theatrical production. Anyone who has ever waited in line at a Starbucks(r) will understand completely what Gabler is talking about.
"Rejuvenile" by Christopher Noxon. A funny but sobering account of how Baby Boomers and Generation X'ers have cast aside traditional notions of "maturity" in favor of indulging their "inner children" well into middle age.
"Bobos in Paradise: The New Upper Class and How They Got There" by David Brooks. Observers of the Baby Boom generation have long noted two contradictory impulses - their ruthless drive to succeed in business and their adoption of the bohemian, "hippie" lifestyles and beliefs of the 1960's and 1970's counterculture. Brooks' book attempts to reconcile these two extremes by pointing out the ways in which Boomers are increasingly using capitalistic means to achieve socialistic ends.
"The Paradox of Choice: Why More is Less," by Barry Schwartz. A persuasive argument that human beings can only handle so many choices at a given time, and that a marketer's challenge is to find the "optimum" number of options for customers, without attempting to customize products and services for every single individual on Earth.
"I'm a Stranger Here Myself," by Bill Bryson. The dust jacket calls Bryson a "humorist," which I don't think is right, because he isn't really funny ("droll" would be a better word). But this collection of newspaper articles, written by an American who returned to the U.S. after a 20-year stint abroad, contains some very sharp and subtle perceptions about how America changed during the 1980's and 1990's.
"Democracy in America," by Alexis de Tocqueville. Observations of America by non-Americans, intended for an overseas market, are always worth reading. This is one of the oldest, and still the best. If you didn't read it in college, now's the time - we may look a lot different than we did in de Tocqueville's time, but we're still basically the same people. Or, as the French say, "the more things change, the more they remain the same."
Happy reading, and happy end of summer.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:33Z
More Taxing Issues When Selling On eBay
Staff
http://www.DrLaura.com/b/More-Taxing-Issues-When-Selling-On-eBay
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2010-05-07T08:50:31Z
2010-05-07T08:50:31Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>More Taxing Issues When Selling On eBay
Cliff Ennico
www.creators.com
"If someone has been selling on eBay as a 'hobby', and wants to get a sales tax number to sell as a 'business' with a new name, should the person first take all their auctions off eBay, and if so, for how long? In my state, the rules for applying for a resale license say that you should not be conducting business for 20 days prior to applying for the resale license, and warn that you could be fined up to $10,000 if you engage in business before you get the license, which takes approximately 20 days. I imagine a lot of people in this situation would just apply for the resale license and leave their eBay auctions going, but if there's a better answer on what to do I would really appreciate it."
First, some basics. When you are selling stuff on eBay, you are required to register with your state tax authority to collect and pay sales taxes. When you register, you will be issued a document that, depending on the state, is called a "sales tax permit", a "business license", a "resale license", or a "certificate of authority". The name on the document doesn't matter. What's important is the tax ID number, or "resale number", that appears on the document. That number must appear on all sales tax and other tax returns you file with your state tax authority.
It doesn't matter whether you treat your eBay selling as a "hobby" or a "business". When you sell stuff on eBay (or, indeed, anywhere on the Internet) to people who are residents of the same state you live in, you are required to collect and pay sales taxes (unless, of course, your state doesn't have a sales tax). Frankly, your sales on eBay right now may be in violation of that requirement - if you have sold anything on eBay to people living in your state, you are subject to the $10,000 penalty for doing business without a sales tax permit.
You are correct that most people in your situation would just apply for the sales tax permit, pay their sales taxes going forward, and not worry about their closed or pending eBay listings. Most people would not willingly pay the $10,000 penalty, even if they can afford it, for fear of "waking a sleeping dog" at the state tax authority and triggering a broader audit of their personal and business finances.
I would recommend that you review your past eBay sales and, if there were any sales to residents of your state, calculate and pay the sales tax for those in-state listings to your state tax authority as soon as you have obtained your sales tax permit. You will still have to pay the $10,000 penalty if they audit you and discover you were "in business" before you obtained your permit, but this is not highly likely to happen, and you will at least "stop the clock" on any interest or penalties that may be due on those unpaid taxes.
"I am an eBay Education Specialist and teach eBay classes at local colleges and adult education programs. What kind of tax form do I need to fill out for this? How do I pay taxes on revenue I generate through teaching, lectures, and private training sessions?"
For those who don't know, an eBay Education Specialist is someone who has been trained by eBay (for a fee) to conduct adult education and other classes that teach other folks how to sell on eBay (if you're interested in becoming one, go to
www.poweru.net/ebay
for details).
An eBay Education Specialist has to pay income taxes, just like anyone else, on the income they make from teaching classes. If you are a sole proprietor, you will have to fill out Schedule C (income or loss from a trade or business) each year and pay your taxes on April 15. If your tax liability is more than $1,000 in any given year, you will have to "estimate" your income taxes four times a year (on April 15, June 15, September 15 and January 15) and pay them in quarterly installments using IRS Form 1040-ES.
The good news is that in virtually all states educational activities are exempt from state and local sales and use taxes. The bad news is that in many states if you are using the word "education" or some variation in your company name, you will have to get permission from your state Education Department to do so. Check with a local attorney to find out if this is necessary in your state - if it is, you will have to pay a small fee and wait several weeks to get the Education Department's certificate authorizing you to hold yourself out as being in an education-related business.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:31Z
Singin' The Old Franchise Blues Again, Mama...
Staff
http://www.DrLaura.com/b/Singin-The-Old-Franchise-Blues-Again,-Mama...
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2010-05-07T08:50:30Z
2010-05-07T08:50:30Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Singin' The Old Franchise Blues Again, Mama...
Cliff Ennico
www.creators.com
"I'm beginning to talk with a newer franchise company about buying a franchise territory. They are asking for a non-refundable $1,000 deposit along with a signed confidentiality form before I can talk 'seriously' with them. If they decide against me, I get it all back. If I decide not to pursue a franchise, I lose my $1,000. Is this standard operating procedure?"
Wait a minute here . . . this is a "newer" (by which I think you mean "early stage") franchise and they want you to give them money just to TALK to them? Frankly, they should be getting on their hands and knees and praising the Almighty that you are even willing to talk to a franchise that hasn't yet proven its concept nationwide!
This has a real smell to it, and I wouldn't give them the money if I were you. Some franchises will want you to put a small "earnest money" deposit up front, but only if (1) they will be incurring significant out-of-pocket expenses on your behalf (such as visiting your area and scouting out potential locations for your franchise outlet) that will need to be recouped if you change your mind, and (2) they will credit that amount against your initial franchise fee should you desire to go forward and purchase a franchise territory. If those two conditions are not met, walk away.
"My wife and I bought a franchise territory for a nationwide fast-food franchise over a year ago, but still haven't found a suitable location within the six Zip Codes that were assigned to us. We recently learned that the franchise was talking to another franchisee who is interested in opening a store in one of our Zip Codes. Can the franchise do this - essentially sell a piece of our franchise territory out from under us while we're looking diligently for a suitable location?"
Franchises make money by selling franchise territories, setting up stores and reaping a percentage of their franchisees' sales - as quickly as possible. Most franchises don't "assign" territories as such (the federal antitrust laws prevent them from doing that), and many won't want to tie up a potentially lucrative territory while you and your spouse take months or years to decide on the "perfect" location.
Your franchise agreement may contain a clause saying they won't open another store in your territory. But you have to read the contract language very carefully - often this "exclusivity" applies only after you open your first store (for example, "we will not sell a franchise to anyone within an X-mile radius of your store"), such that specific locations within those Zip Codes will be "up for grabs" until franchisees actually open stores. Have your attorney look at the contract you signed last year and see if this is indeed the case, as I suspect it is. Also, don't hesitate to ask the attorney to write a stern letter to the franchise.
"My husband and I bought a franchise several months ago, and we have been having a Dickens of a time trying to find the right location for our first store. The franchise referred us to several local real estate brokers, but none of them knew the franchise territory we had purchased. One broker handed us a roadmap and asked us to help him with directions to specific addresses in his listings. Another broker had only obtained his state license five months previously. Needless to say, these experiences didn't exactly boost our confidence in the franchise's site selection process. Doesn't a franchise have a legal obligation to run its business in a competent manner?"
Believe it or not, this is one of the trickiest questions in franchise law right now. State laws are "all over the place" as to whether a franchise owes its franchisees a "duty of competence". Most reputable franchises will stand behind the "criteria" they use to determine if a particular location will be successful for the franchisee or not. They will, however, be quick to admit that they know nothing of the real estate environment in your town, county or state, especially if their corporate headquarters is located halfway across the country.
I would think that a franchise does have a duty to refer you to competent, experienced commercial real estate brokers in your area who are at least somewhat familiar with their franchise concept. I would have an attorney look at your franchise agreement and see what specific disclosures were made to you about the site selection process and what the franchise would and would not do for you.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:30Z
A Trademark Is A Trademark, Even When It Isn't...
Staff
http://www.DrLaura.com/b/A-Trademark-Is-A-Trademark,-Even-When-It-Isnt...
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2010-05-07T08:50:28Z
2010-05-07T08:50:28Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>A Trademark Is A Trademark, Even When It Isn't...
Cliff Ennico
www.creators.com
"Last year I set up a small Internet business to sell products on eBay, Google, Amazon and other online retail venues. I was especially interested in advertising my Website on Froogle, a specialized search engine provided by Google that helps people find low-priced items on the Web, so I registered a domain name that included the word Froogle - www.xxxxxfrooglexxxxxx.com [actual name deleted for privacy reasons]. I notice several other people have done this with their Websites, and I haven't heard of Google suing anyone to prevent them from using that name. In fact, I understand Google has recently renamed this service, and is no longer using the Froogle name. I think 'Froogle' is still pretty cute, and I really don't want to call Google if I don't have to. Am I okay to use 'Froogle' as part of my Web domain name and business name?"
One of the toughest challenges in starting any small business is to find a good name for the bloody thing. The law says that if someone else has registered a name as a "trademark" or "service mark" with the U.S. Patent and Trademark Office (
www.uspto.gov
), you cannot use that name as part of your business name, Web domain name, or anything else. If you do, even if you are not offering the same products or services as that other company, you may be "infringing" the other company's trademark and are likely to receive a nasty "cease and desist letter" from that company's attorneys warning you to cease using the name . . . or else. Because the other company is usually a lot bigger than you are, with millions of dollars to throw at lawsuits to protect their trademarks, you will have no practical choice but to back down, lick your wounds, and find another name.
If "Froogle" were a registered trademark of Google (or indeed any other company), that would be the end of the story. But wait . . . this gets interesting.
A quick search of the Patent and Trademark's Office records shows that Google at one time did try to register "Froogle" as a service mark, but "abandoned" their application at a later time (meaning they withdrew their application). Without looking at the underlying trademark file, we can only speculate as to why that happened. Perhaps the trademark examiners felt that "Froogle" was too close to "frugal" - a word that has been in the English language for hundreds of years. Or perhaps the fact that a number of people tried to register "Froogle" at the same time convinced the trademark examiners that the word was a generic or "descriptive" name for something and that therefore no one should have the exclusive right to use it.
The plot thickens. Another service mark application, for "Froogles", was filed two years prior to Google's application and is still pending in the Trademark Office. Furthermore, Google has (as you correctly point out) ceased calling its shopping service "Froogle". It's now called "Google Product Search", although its Website still appears as froogle.google.com.
Without calling Google and getting their permission, you really don't know for sure whether or not you can safely use the "Froogle" name as part of your Web domain name. I sympathize with your desire not to call Google directly - after all, what incentive do they have to say "okay"? But I don't think it's a good idea to use the Froogle name. Even if Google is no longer seeking to register the name as a service mark, they may still consider it a "common law" service mark and will send you a nasty letter if they find out you are using it to drive traffic to your site (which is, I presume, the reason you wanted to include it in your domain name).
Also, don't forget that other guy that applied to the Trademark Office to register "Froogles" - he's still out there as far as I can tell, and might well send you the nasty letter Google wouldn't bother sending you if indeed they are "abandoning" the Froogle mark.
There are plenty of good names out there that do not conflict with anyone else's. Sometimes the best name for a company has nothing whatsoever to do with your business - what does "Monster," for example, have to do with looking for jobs online?
Unless the "Froogle" name is essential to the success of your business, I would steer clear of using it until Google specifically states they no longer consider "Froogle" a trademark or service mark. Using the name as a "keyword" to optimize your Website for Google's search engine, on the other hand . . .
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:28Z
Teleseminars: Five Tips For Getting Your Moneys Worth
Staff
http://www.DrLaura.com/b/Teleseminars:-Five-Tips-For-Getting-Your-Moneys-Worth
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2010-05-07T08:50:27Z
2010-05-07T08:50:27Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Teleseminars: Five Tips For Getting Your Moneys Worth
Jill Hart
CWAHM.com
Teleseminars are a great way to learn from experts without leaving the comfort of your home. No travel expenses, jet lag or cafeteria food to deal with makes them the perfect way for work-at-home moms to expand their business knowledge and skills.
More and more experts and authors are offering teleseminars on topics such as business, marketing, advertising and more. Many of these subjects are of interest, but can we as business owners really learn enough to make it worth the time and expense? In short, yes. However, there are a few important steps you should take when attending a teleseminar.
Make sure the speaker is qualified.
It's fairly simple to set up a teleseminar and virtually anyone could do put one together. So, before investing in a seminar, do some quick research on the speaker(s) to be sure they are experienced in the areas they will be covering. Search for their name using a search engine such as Google or Yahoo and see what results are returned. Also, if they have authored a book, take a look on Amazon and read any reviews/comments posted there.
Take notes.
If you're like me, you have multiple projects on your mind, as well as your children, spouse, etc. With all of the information running through my brain, I tend to recall very little of what I hear during the day, even if it's good information. In order to retain the information given during a teleseminar, don't just sit and soak it up. Make the effort to listen closely and take notes. You'll remember more of what was discussed and you'll be able to refer to your notes in the future if necessary.
Speak up.
A teleseminar is similar to a massive conference call with one main person speaking. Because of the size and the virtual setting, many people feel unsure about speaking up and asking questions. However, you'll do both yourself and the speaker a favor by voicing your thoughts when appropriate and asking honest questions. Chances are good that others in the group have the same questions and will appreciate you stepping out and asking. Do be careful not to ask too many questions. This isn't a personal training session and if too many questions are asked, especially by the same person, the speaker doesn't get to cover all the material they have planned.
Enlist a Friend.
What better way to get the most out of a seminar than to take it with a friend? If you have a friend of colleague that is interested, you can both participate in the teleseminar it will give you a great topic for discussion afterwards. I tend to learn more from discussions post-seminar than I do while listening to the lecture. I think talking it over with another attendee helps me to process the information and see how it applies to my daily life and business.
Follow up.
If a teleseminar is especially helpful to you, send a thank-you to the speaker. Try to send a written note or if this is not possible, an email will do. By making contact with the speaker and showing your appreciation you're not only providing encouragement, you are networking. You just never know what type of response you might receive and you may even make a new friend or find a mentor.
The key to getting the most out of teleseminars is to find the ones that are by true experts in their field and that interest you the most. So, the next time you find a teleseminar that catches your interest, gather up your pen and paper and tune in. If you can find a colleague that interested in joining you, you'll be all the better for it. You'll learn more and have more fun in the process.
About the Author:Jill Hart is the founder of Christian Work at Home Moms,
CWAHM.com
. Jill is a contributing author in The Business Mom Guide Book and I'll Be Home For Christmas and co-author of the upcoming book, Home Based Blessings. Jill and her husband, Allen of CWAHD.com reside in Nebraska with their two children. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:27Z
Free Samples, Taste Tests, And The Law
Staff
http://www.DrLaura.com/b/Free-Samples,-Taste-Tests,-And-The-Law
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2010-05-07T08:50:25Z
2010-05-07T08:50:25Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Free Samples, Taste Tests, And The Law
Cliff Ennico
www.creators.com
"I am in the process of starting a specialty foods business with a focus on high-quality baked goods. As part of my market research, I plan to host 'taste testings' in my home, at local fairs and church functions, and eventually in supermarkets and local gourmet stores. Is there anything I can do to limit my liability in case somebody gets sick? I'm especially concerned about people with food allergies who don't realize it until it's too late."
Sooner or later, every specialty foods business has to learn a bit about taste testing, as it's often the best way to predict the market success of any new food product. Simply put, people won't buy a food product unless it tastes at least somewhat good. And they don't know if something tastes good if they don't try it first.
Just remember that whenever you put ANY product out into the marketplace - even just for testing - product liability law comes into play. Basically, you have two things to do here. The law requires you to KNOW if any of your ingredients, or the manner in which you cook or bake something, poses a health or safety risk before you put it out for market testing of any kind. And, if it does, you must make a reasonable effort to WARN consumers about the risks before they try it.
First of all, I wouldn't do any taste testings out of your home, because inviting total strangers into your home FOR ANY REASON is usually a bad idea. You just don't know about some people - they give you good feedback about your product, but then later that evening you notice some precious knickknacks have gone missing. Also, doing product testing out of your home doesn't exactly send the signal that you are a serious business.
You're on stronger ground with the local fairs and church functions. Here are some rules:
make sure your packaging is professionally done, and meets all federal, state and local labeling laws - to learn more about these, go to
www.cfsan.fda.gov/label.html
;
you have to be especially careful when listing your ingredients - too much detail and you've given away your recipe, too little and you haven't sufficiently warned people with food allergies (for help with disclosure laws regarding the most common allergens, go to
www.foodallergy.org/advocacy/labeling.html
);
make sure to state clearly, both on the label and verbally to each "taster", if there are any ingredients (such as peanuts or gluten) that you know a significant number of people in your community are allergic to;
most attendees at street fairs and church functions won't sign liability releases, but you CAN give each "taster" a one-page flyer about your products (perhaps with a coupon towards a future purchase) that contains all of your liability disclaimers and warnings; and
if you yourself do not know the Heimlich maneuver, make sure there is someone nearby who does (please don't laugh - when people are eating and giving you verbal feedback at the same time there is a greater than usual choking risk).
"I've created a new product, and want to offer it free on my Website to get people excited about it. Any ideas on how to do that legally?"
Offering free samples of your product is a great way to generate "buzz" in the marketplace, but it can easily be abused by greedy consumers and, again, the product liability laws apply. Here are some tips:
make sure your samples use your standard packaging, and include any appropriate legal disclaimers (for example, "NOT A TOY - may be a choking hazard to children under 10");
limit your samples to "one per customer", and build in some controls so you can determine if some crazy person is ordering 50 free samples one at a time;
be sure to state clearly on your sample "for promotion purposes only - not for resale" - and be sure to check eBay every once in a while to make sure your samples haven't been "repurposed";
condition your sample on some marketing feedback from the customer, or offer him something else if he answers a short questionnaire about the sample;
consider using one of the better known "freebie" Websites, such as
www.all-free-samples.com
and
www.thefreesite.com
, to push your product samples - these sites already have all the necessary controls in place to prevent sample abuse, and for a small fee will help you target your market research in a more effective way than just offering free samples on your Website will.
Cliff Ennico (
cennico@legalcareer.com
is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:25Z
When "Solving The Problem" Doesn't Solve The Problem
Staff
http://www.DrLaura.com/b/When-Solving-The-Problem-Doesnt-Solve-The-Problem
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2010-05-07T08:50:23Z
2010-05-07T08:50:23Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>When "Solving The Problem" Doesn't Solve The Problem
Cliff Ennico
www.creators.com
"I'm a computer consultant who works out of my home. I have one or two larger businesses that provide the bulk of my income, and the rest of the time I spend serving small and home-based businesses. Last week I received a call from one of my home-based business clients who had a real emergency - his computer was crashing once every hour and he couldn't access his e-mails. I was busy with one of my bigger clients that day but drove over to his house that evening. After about four hours running diagnostic tests on his computer I concluded that his hard drive was 'cooked' and that he would be better off buying a new computer rather than repairing the old one. He said he was traveling on business the next few days and wouldn't have time to shop for a computer. I told him I would be happy to put a new computer together for him, but because of pressing duties with my larger client it would probably be a week or two before I could give him a quote.
We parted on friendly terms, but when I called him the following week to see if he was still interested in a new computer he told me he already had one - apparently he went to a local computer store the morning after I visited him and bought a machine 'off the shelf'. He also told me he wouldn't be paying me for the four hours I spent working on his machine. It isn't worth suing over, but I feel this client ripped me off. Did I do something wrong here?"
To paraphrase an old TV game show, "it's not what you did, it's what you DIDN'T do" for this client that cost you the relationship.
I have no doubt that you are an excellent computer technician, and that you correctly diagnosed the problem this client was having with his computer. The problem is that there were two separate problems here - the computer had a problem, and the client had a problem. The computer's problem was that its hard drive was "cooked". The client's problem was that he had a home-based business, he couldn't access his e-mails, and he was losing business every hour his computer wasn't operational. You solved the computer's problem all right, but you completely ignored the client's problem, and he had every right to be angry with you.
Let me spell it out for you. When you work out of your home and your computer crashes, you are out of business. Kaput. Gonzo. Over and out. World without end, amen. Would I be right in guessing that this client was freaking out when you arrived at his home? Now, you started out right - you got to his home the same day he called you. But then you spent four hours taking his computer apart (no doubt while he hovered over you wringing his hands in anxiety, as I would have done), only to tell him there was nothing you could do to get him up and running within the next week. Instead of reducing the client's anxiety, you succeeded only in terrifying the Dickens out of him.
Your client couldn't have cared less about the cause of the computer's problem - what he wanted was to get up and running in as short a time as possible. Here's what you should have done:
you should have had a spare computer in the trunk of your car, along with a portable hard drive, for just such an emergency as this;
the minute you showed up at the client's home you should have disconnected his computer, replaced it with the "spare", and connected it to his e-mail and Internet accounts;
if the client hadn't properly backed up his data, you should have backed up his computer onto the portable hard drive and put as much of his data as you could back on the "spare's" hard drive;
THEN, once the client was back in business, you could have given him the option of purchasing the "spare", or leasing it for a few weeks while you put a new computer together for him at your leisure.
This client was absolutely right to take matters into his own hands - waiting a week for your schedule to clear would probably have destroyed his business. Frankly, he let you off easily - a less gracious client would have told you in no uncertain terms what you could do with that "cooked" hard drive! Whatever you do, don't send this guy a bill - send him some free software or other "thank you for your business" gift that will show him you really do consider people more important than machines.
Cliff Ennico (
cennico@legalcareer.com
is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:23Z
Telecommuting - Five Ways To Find Your Next Job
Staff
http://www.DrLaura.com/b/Telecommuting---Five-Ways-To-Find-Your-Next-Job
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2010-05-07T08:50:21Z
2010-05-07T08:50:21Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Telecommuting - Five Ways to Find Your Next Job
Jill Hart
CWAHM.com
The trend of telecommuting is on the rise as employers begin to see the savings involved in both gas and office space. With gas prices at an all-time high, many Americans are looking for ways to do less driving and more companies than ever before are offering telecommuting options to their current employees and searching for at-home employees to fill open positions. The question for the job seeker is now how to find these opportunities. Below are five methods you can use to find a telecommuting position.
First, check your local newspaper. When I began my search for an at-home career, I found my first employer through the Classified Ads section of our hometown paper. I was wary at first, but after thoroughly researching the company through means such as the Better Business Bureau (BBB), visiting the corporate office and meeting some of their current employees I found the company to be legitimate.
Second, search online using website such as
Monster.com
and
Dice.com
. However, listings found online must be researched carefully to avoid the scams that abound on the Internet. There are also websites that will you allow to do job research in your own community. One such website is
Craigslist.com
on which you can choose a city and then refine your search with keywords such as "telecommute."
Posting your resume on websites such as
Hotjobs.com
is a third way to locate at work-at-home job. Putting your resume online can bring employers to you, depending on your skills and qualifications. Another bonus of an online resume is that you can easily direct prospective employers to view it. It also makes life a bit simpler when applying for jobs, because you can attach your online resume instead of typing out your job history, qualifications, and so on, each time you apply for a job.
When posting your resume on the web, be sure to create an accurate and impressive representation of your abilities. You don't want to be wordy when describing past job experience, but you do want to be specific about the roles you've held as well as your accomplishments.
A fourth option when looking for at-home employment is to open a phone book and call businesses in your area. For example, if you're interested in doing administrative work, you might contact churches and small businesses in your area to see if they are looking for office help. Even if they are not currently seeking help, they may know of another business owner who is.
Along those same lines, the fifth way to become a telecommuter is to create your own opportunity. For example, instead of finding a company that will hire you as an administrative assistant from home, consider starting your own business as a Virtual Assistant. You can offer your services to many companies, which can both increase your income potential and allow you the flexibility of deciding which jobs you'd like to accept.
You can also create your own telecommuting position by talking with your current employer about work-at-home possibilities. More and more companies are finding that at-home employees are just as productive as those in the office , if not more. Companies also benefit financially by lessening office space and avoiding the costs of many office supplies. Many companies who are not ready to hire at-home workers will allow their current employees to work one or two days from a home office, so be sure to discuss this option.
The telecommuting field has become highly competitive as more and more people find that working from home is a possibility. Searching for a telecommuting position can be daunting, but by looking in strategic places such as online and in your local newspaper, you'll have a much better chance. No matter, how you find your telecommuting position, make sure it's something you would enjoy doing and also something you can make money at.
Jill Hart is the founder of Christian Work at Home Moms,
CWAHM.com
. Jill is a contributing author in The Business Mom Guide Book and I'll Be Home for Christmas and co-author of the upcoming book, Home Based Blessings. Jill has articles published across the web on sites like DrLaura.com and ClubMom.com. Jill and her husband, Allen of
CWAHD.com
reside in Nebraska with their two children. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:50:21Z
Ten Really Cool Things I Learned At eBay Live! 2007
Staff
http://www.DrLaura.com/b/Ten-Really-Cool-Things-I-Learned-At-eBay-Live!-2007
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2010-05-07T08:50:19Z
2010-05-07T08:50:19Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Ten Really Cool Things I Learned At eBay Live! 2007
Cliff Ennico
www.creators.com
If it's June, it must be time for eBay Live!, the annual trade-show-cum-Woodstock for the eBay community. This year's event was held in Boston, and I was privileged to host programs dealing with the legal, tax, and personnel aspects of running a "real" business on eBay. If you think eBay is only for folks living in remote rural areas, be advised that more than 10,000 people, most of them serious eBay sellers, attended the event.
Here are 10 of the really cool statistics, selling resources and people I learned at this year's eBay Live!
10.According to CEO Meg Whitman, there are more than 233 million registered eBay users around the globe, up from 200 million at last year's event.
9.eBay sellers have given more than $100 million to charities around the world through eBay's "Giving Works" program, which allows sellers to donate a percentage of their auction winnings to designated nonprofit organizations.
8.If you're a fan of YouTube.com or other online video sites, you can now create "video listings" of the stuff you're selling on eBay and post them on your auction pages. Consider: instead of describing in words the vacuum cleaner you have for sale on eBay, you can post a video of a sexy "Desperate Housewives" type using the vacuum and demonstrating just how well it picks up dust devils. Just keep it clean, folks.
7.eBay business consultant JackWaddick (
jwaddick@oakviewtraining.com
) said that by far the biggest announcement at this year's eBay Live! was PayPal's new "Security Key" - a device that (for a one-time $5 fee) generates a unique six-digit security code for your account every 30 seconds. You enter this number, along with your username and password, each time you log into your PayPal account so identity thieves and other fraudsters can't access your account even if they hack your password. To find out more go to
www.paypal.com
, click on "Security Center", then "Security Tools", then "PayPal Security Key Overview" (hey c'mon, guys - something this big should be on the home page, shouldn't it?).
6.The coolest title I've ever seen on a business card - Carrie Jeffries, "Head Dreamer" of Creative Career Cafe, a direct marketing consultant for small businesses based in North Smithfield, Rhode Island (www.createtheworkyoulove.com).
5.Bizfilings.com, one of the leading online incorporation services, announced that they just acquired toolkits.com (the former "CCH Toolkits"), which among other things helps small businesses register for state sales, use and other business taxes in their home states. So now anyone forming a corporation or limited liability company (LLC) through bizfilings.com will automatically be able to register for state and local taxes at the same time, without having to seek an accountant's help. To my knowledge, this is a service not offered by any of the other "do it yourself" online incorporation services, and will give bizfilings.com a major edge over their (many) competitors.
4.Are you using QuickBooks(r) for your online selling business but can't find an eBay-specific "chart of accounts" to upload into the program? Oregon CPA Cathi Aiello (
www.allegroaccounting.com
, eBay ID allegro-accounting) offers customized "chart of accounts" templates for a variety of eBay sellers beginning at $19.95.
3.Have you always wanted to own your own Internet radio station? WS Radio (
www.wsradio.com
), the host of "eBay Radio" and "Entrepreneur (Magazine) Radio" on the Internet, is selling franchises in America's top 50 cities - for more information, go to
www.wsradio.com/myhometown
.
2.eBay sellers who use Apple's Macintosh computers now (finally) have a listing tool of their own - GarageSale (
www.iwascoding.com/GarageSale
). With GarageSale Mac users can finally compose eye-catching auctions quickly using an intuitive Mac-like interface, and in the fraction of the time it would take to do it on eBay's web interface. Not only this, but GarageSale also integrates perfectly with iPhoto, and includes photo storage (always a big issue for eBay sellers). Thanks to eBay University instructor Janelle Elms (
www.janelleelms.com
) for introducing this one to me.
1.The most powerful new eBay resource I saw at eBay Live! 2007 was Avalara.com (
www.avalara.com
). Based in the Seattle, Washington area, Avalara has developed a "sales tax calculator" that it offers free of charge to eBay sellers. You just type in information about your product and your winning bidder's Zip Code and the calculator tells you exactly how much to charge for state and local sales taxes. Avalara is one of only three software providers nationwide to qualify as an "authorized vendor" under the Streamlined Sales Tax Project (SSTP), a proposed law that would require online vendors such as eBay sellers to collect and pay sales taxes to the state and local governments where all of their winning bidders reside (currently eBay sellers are required to collect and pay sales taxes only if the winning bidder lives in the same state they do). If (as is highly likely) Congress passes legislation enabling the SSTP to become law in the 22 states that have already endorsed it (and you know the other 28 states won't be far behind), Avalara.com already has in place the software tools that will help eBay sellers keep track of the more than 7,500 jurisdictions in the United States that impose sales taxes. Expect big things from this company.
Next year's eBay Live! will be held June 19-21, 2008 in Chicago. If you're selling on eBay or even thinking about it, ya gotta be there!
Cliff Ennico (
cennico@legalcareer.com
is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:19Z
Four Secrets To Successful Negotiating
Staff
http://www.DrLaura.com/b/Four-Secrets-To-Successful-Negotiating
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2010-05-07T08:50:17Z
2010-05-07T08:50:17Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Four Secrets To Successful Negotiating
By Cliff Ennico
www.creators.com
"I have been running a fairly successful business for some time now, but I know I can do better. The problem is that I don't like to negotiate - I end up giving up way too much because I find the process so unpleasant. Do you have any tips that will make me a more successful negotiator without becoming an S.O.B.?"
Negotiating is one of the three most important business skills (the others are selling and accounting). Show me a good negotiator, and I'll show you (usually) a successful businessperson.
A lot of people don't like the negotiation process - when was the last time you truly enjoyed haggling with a used-car dealer? But that's because you don't realize what negotiation really is. Negotiation is NOT a search for the "perfect deal", because there is no such thing. Negotiation is NOT an argument or fight - although to hear an intense negotiation under way between two equally passionate business people you might easily mistake it for one.
What negotiation IS . . . is a game. That's all. Just like chess, checkers or baseball - two individuals or teams match up against each other, and the player or team with the better brains, spirit and luck walks away the winner.
And not just ANY game, but a very specific one - poker. Show me a good poker player, and I'll show you a good negotiator. Why? Because, like a negotiation, a poker game takes place on two levels: the actual and the psychological. When the players are dealt cards in a poker game, they are holding "hands", and some hands are stronger than others. That's the actual game - who has the better cards.
But poker is also a psychological game. Because the players cannot see the other players' cards, they try to "bluff" the others into thinking that their hands are stronger or weaker than they actually are. Very often, the victory in a poker game goes not to the player with the strongest hand, but to the player who persuaded the others that he had the strongest hand (or that the others had weaker hands). Just like a business negotiation . . .
Here are four universal rules that, if followed closely, will make you a better negotiator.
Rule # 1: Never Want the Deal Too Badly. You never can get a bargain on something you really, really want. Once the other side sees you are desperate to have something, they will make sure you pay top dollar for it. In any negotiation, the loser is always the player who needs the deal more than the other player does. Your goal in any negotiation is to persuade the other guy that he needs the deal more than you do, and that you are prepared to walk away from the table at any time and look for better deals.
Rule # 2: Never Give Up Something Without Getting Something in Return. Never agree to something, even something you don't care much about, without getting something from the other side in return. You may be tempted to give up something because you want to appear proactive, friendly or nice. But negotiators are funny people - whenever you do that, they don't see it the same way you do. Instead, they think you are weak, or that you need the deal more than they do. So they start bargaining harder by asking for even more "freebies" from you. Before someone will negotiate fairly with you, they must respect you - and they won't respect you if you make it too easy for them.
Rule # 3: Never Agree to Something That Doesn't Make Sense. Never get so caught up in the momentum of getting a deal done that you forget why you are doing the deal in the first place. If the other side asks you to give up something that will make the deal no longer worthwhile to you, tell them so - and offer up a compromise that will give you what you need while addressing the other side's (legitimate) concern.
Rule # 4: Know When to Stop Negotiating. Like any game, negotiations don't go on forever. The longer it takes to get a deal done, the more likely it is that the deal will never happen. At some point, the benefits to be gained by haggling over small points are outweighed by the negatives - when that point has been reached, and you've got a good deal you can live with, don't try to "gild the lily". Get the deal done, and move on.
Want to become a better negotiator? Here's how:
Get the all-time classic book "Getting to Yes", and memorize every word;
Go to antiques shows and flea markets, look for items you don't really want, and offer the seller 50% or less of the sticker price - if they don't accept or sharply reduce their price, walk away - if they accept, buy it and sell it later on eBay;
Go to Las Vegas and learn how to play poker - you might even be able to deduct it as a business trip.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and former host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2008 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:17Z
"Global Warming" No Excuse For Poor Customer Service
Staff
http://www.DrLaura.com/b/Global-Warming-No-Excuse-For-Poor-Customer-Service
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2010-05-07T08:50:15Z
2010-05-07T08:50:15Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>"Global Warming" No Excuse For Poor Customer Service
Cliff Ennico
www.creators.com
"My wife and I run a small lawn sprinkler service with five employees. We have over 3,000 customers in our area, who pay in advance for sprinkler service each February. The weather this April was unusually cold - the ground didn't start thawing out until early May so we weren't able to turn people's sprinklers on until then. Once the ground got soft we started driving around to different neighborhoods turning peoples' sprinklers on, but we're way behind. Also, a lot of people were on vacation, working or whatever when our crews stopped by their homes. So now the weather's been hot the past few days, and we're getting dozens of angry phone calls from customers saying their lawns are burning up because we haven't turned their sprinklers on. How can we convince them that it's 'global warming', and not our fault?"
If you're looking for sympathy, pal, you've come to the wrong place. Your customers have already paid for service this year, and it's your job to provide it, cold weather or not. No one can control the weather, of course, but this isn't really a weather problem - it's a customer service problem, and that's always within your control. You had an entire month to plan for how you were going to handle this (admittedly tough) situation, and you obviously didn't take advantage of it.
Did you take any steps to warn your customers that turn-on service was going to be a bit late this year due to an unusually cold April? Did you tell your customers in advance when your crews were going to be in their area to turn their sprinkler systems on? Did you make an effort to re-schedule customers who told you they weren't going to be home when your service crews were in their area?
Obviously, it's too late to do any of that now. You've got some serious "damage control" to do; otherwise you are likely to lose lots of your customers, who will tell everyone who asks (and, believe me, people do) exactly why their lawns are brown this year.
Here are some things you should do immediately:
change your office's VoiceMail message, adding a statement that "sprinkler turn-on service will be slightly late this year due to an unusually cold April; we will call you when our service crews will be in your area, but if you need immediate service please leave a message and one of our representatives will call you today to schedule your turn-on service";
have one of your employees return every angry customer call you have received so far (as well as every customer who wasn't home when your service crew was in their neighborhood) and schedule their turn-on service so they know at least when it will happen;
dedicate one of your work crews as a "swat team" and have them do nothing but service these angry customers - pay them overtime if you have to;
as for customers living in neighborhoods you haven't visited yet, have another employee call each household a week in advance with the following message: "we are planning to visit your home on [date] to turn on your lawn sprinkler for the year; if you will not be home that day, please call us immediately so we can obtain some information from you to help service you better;"
if a customer responds to that message, explain to them how to turn the water on in their basement (this is the only reason your service crew would need access to their home), and ask for the access code to their electronic garage door opener (most lawn sprinkler controls are in the garage) so the crew can access the sprinkler control without having to enter the house itself - that way your crew will be able to stay on schedule, and the customer won't have to worry that they missed your call because they were in the shower and couldn't hear the door bell ring;
if a customer refuses to co-operate, reschedule their turn-on service for a time when they will be home, and add that to the call list for your dedicated "swat team" crew;
consider renting extra trucks and hiring "day laborers" on a temporary basis so that each of your five employees (six, including you) can be out in the field servicing your customers at any given time;
offer a discount on next year's service to those customers who made angry phone calls to your business - don't wait for them to ask for it.
People install sprinkler systems so that their lawns don't burn up in the summer heat. If their lawns burn up because their system wasn't turned on in timely fashion, it's your fault, not the environment's. That's an "inconvenient truth" you ignore at your peril.
Cliff Ennico (
cennico@legalcareer.com
is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:15Z
Top Ten Ways to Lose a Customer
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http://www.DrLaura.com/b/Top-Ten-Ways-to-Lose-a-Customer
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2010-05-07T08:50:13Z
2010-05-07T08:50:13Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Top Ten Ways to Lose a Customer
Jill Hart
CWAHM.com
After days of searching online, I found a website that I thought sold the item I needed. Excited, I scoured the website for the price of the product and the payment. Unfortunately, I never found the information. After ten minutes of searching, I gave up.
No matter how many visitors you are able to attract to your website, there are still ways to lose them before making a sale. Below are the top 10 ways to lose a paying customer.
Navigation - One of the easiest ways to turn off a website visitor is create a complicated website. If a customer struggles to find their a product, they will more than likely get frustrated and leave the website before they buy.
When I first designed my website I had no idea about design. Looking back, I'm not sure I accomplished pretty and I did not create an easy website to navigate. Much like the one I mentioned earlier, my website was frustrating to visitors.
Busyness - The wrong type of website can turn off visitors and repel sales. Create a website designed for your target audience. For example, if you're selling aromatherapy products, you'll want a relaxing environment. However, if you're a life coach you want to pump people up. Your website should be full of life and activity.
Sizing - Many websites make the mistake of sizing their design to fit their screen. Unfortunately, the standard resolution that most monitors are sized to (800 x 600) does not always match. When this happens, visitors must scroll not only up and down the page, but left and right as well. To eliminate this frustration, set you width to no more than 800 pixels.
Point of Contact - When visitors to your website have a question they want to be able to easily find your contact information. Many websites display their email address, phone number, or a link to their contact information either in their menu or at the top/bottom of their website, which makes it easy to find.
Hidden Pricing - Customers want to have all of the necessary information before they make a purchase. Make sure your prices are available up front. When customers have to dig for pricing information, there's a good chance that they will get frustrated, give up and leave your website.
Customer Service - You can set your business apart from all the rest by offering fast, friendly and helpful service to your customers. Try to respond to emails and phone calls within twenty-fours hours. Smile while you type or talk on the phone because your customers will hear the lilt in your voice and respond.
Follow-up - If your customer asks a question about a product or service, follow up within 48 hours to see if they have further questions. Many times this follow-up can lead to a sale. Neglecting follow-up can lose you customers.
Spam - If you offer a newsletter or other type of mailing list, be careful with what you send to your subscribers. Avoid mailings that look like spam. Choose a template that works for you and that will be recognizable to your readers.
Professional Conduct - In the business world it's important that you're professional, especially when dealing with difficult clients. It's imperative to be kind, courteous and take care of business. Refrain from any type of name calling or blame placing. Stand up for your business in a professional manner and treat your customers with respect at all times. Remember the old adage - the customer is always right.
Payment Options/Security - Customers want to know that they can trust you with their financial information. Choose a payment provider that offers a secure way to transit orders and credit card information. If possible, offer more than one payment option to give your customers the ability to choose how they will pay.
Creating a website that is customer-friendly isn't as simple as one might think. There are many aspects to consider and the designer must choose carefully or risk losing sales. Avoid these ten no-no's and make your website into a successful business venture.
About the Author:
Jill Hart is the founder of Christian Work at Home Moms,
CWAHM.com
. Jill and her husband, Allen of
CWAHD.com
reside in Nebraska with their two children.
Staff
2010-05-07T08:50:13Z
Tax Tips for the Home-based Business Owner
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http://www.DrLaura.com/b/Tax-Tips-for-the-Home-based-Business-Owner
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2010-05-07T08:50:11Z
2010-05-07T08:50:11Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Tax Tips for the Home-based Business Owner
Jill Hart
CWAHM.com
Tax season is one of the most nerve-wracking times of the year. From putting together all of the necessary tax documents to finding the right accountant, taxes can be time-consuming, frustrating, and a major challenge. Add in a home-based business and taxes can be downright overwhelming. However, there are some things you can do to make your tax season a breeze.
Choose your accountant wisely
One of the most important decisions you'll make as a business owner is who you will choose to help you with your bookkeeping and accounting needs. Research accountants in your area and look for one that specializes in small business taxes. Ask if they will prepare both corporate and personal returns if needed. Make sure your accountant is clear on how they charge for their time - especially for questions over the phone.
I once worked with accountants who worked with large corporations. They were used to having very little contact with their clients, however with a new corporation I had many questions about how things worked. Needless to say it didn't go well. Our current accountant specializes in small businesses and is available by phone or email if I have a question.
Set up your business accounts properly
I was told early in my business career that I must make sure to keep my business accounts and personal accounts separate. When I first began running my own business I simply added a second checking account to use for business purposes. There was no cost to do so I was able to set my income aside in this separate account.
I also set up a savings account to set aside my taxes each month. This was a big help at the end of the year knowing that all of my taxes were set aside and I could relax instead of scrambling to come up with the money.
Keep good records
Another way to keep tax season stress-free is to keep business receipts throughout the year. I keep a separate file in the filing cabinet next to my desk just for this purpose. This way I have everything in one place when tax season arrives. If you don't have room for a filing cabinet, consider an expandable folder categorized A - Z. That way you can still divide up the taxes by topic, and won't have to do that come tax season.
Keep records of your business expenses throughout the year. Request a list of items from your accountant or tax professional, so that you will know what items to track. Be sure to ask what counts as "business expenses." There are certain deductions that you can take for your home, car, and utilities. Consult your tax professional about these deductions.
Know Your Tax Facts
It's important to know the date that your taxes are due. Many S corporations are surprised when they discover that some of their tax forms need to be filed by March 15th and not April 15th. Another surprise to some home-based businesses is that if you pay subcontractors over $600.00 a year, you need to send them a 1099 by the end of January.
There are many places online to find more information about taxes. One great place to find more information is the Internal Revenue Service (IRS) website at
www.irs.gov
. They have sections with helpful information on both personal and business taxes. They also list contact information for local IRS offices where you can also find help.
Don't ignore the taxes involved with running a home-based business and hope it will all work itself out. It takes planning and effort to be prepared for tax season. Do your homework when it comes to taxes and find an accountant that you trust to guide you through the tax maze. With the right preparation and help your tax season can be stress-free.
About the Author:
Jill Hart is the founder of Christian Work at Home Moms,
CWAHM.com
. Jill is a contributing author in
The Business Mom Guide Book
and
I'll Be Home For Christmas
and co-author of the upcoming book, Home Based Blessings. Jill has articles published across the web on sites like DrLaura.com and ClubMom.com. Jill and her husband, Allen of CWAHD.com reside in Nebraska with their two children. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:11Z
How A Book Pitch Can Grow Your Business
Staff
http://www.DrLaura.com/b/How-A-Book-Pitch-Can-Grow-Your-Business
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2010-05-07T08:50:10Z
2010-05-07T08:50:10Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>How A Book Pitch Can Grow Your Business
Jill Hart
CWAHM.com
When someone asks you about what you do, do you have a ready answer? Or do you stumble and stammer trying to explain your business?
I was recently at a writer's conference where one of the main focuses was learning to create a successful book pitch. My instructor emphasized what a good pitch can do for a writer. She explained that when an editor asks an author about their writing project, they have one shot at sharing their pitch and getting the editor excited about their project. A great pitch makes a great first impression and can translate into a book contract. On the other hand, a pitch that is not well thought out can cost an author the chance of selling that project.
A good book pitch is a summary of the author's idea, but more than that it's a summary with a sizzle. At the conference, I learned that many authors spend hours crafting and memorizing their pitch. Then, when asked about their project, they are able to give a quick, concise synopsis that not only explains their idea, but makes the editor want to learn more.
I believe that the concept of creating a pitch can also apply to the home-based business world. As entrepreneurs, we can put together a summary of our business that will not only explain what we do, but grab the attention of whomever we're speaking with.
A good business pitch summarizes the business concept in one to two short paragraphs, usually a total of 50 words or less. To begin, write out a list of the five most compelling aspects of your business. Try to think about your business as if you were on the outside looking in. What would interest you? What would make you want to learn more?
Try to answer these questions:
Who is my target market?
What are my top selling products/services?
What about my company makes it stand out? If I were looking at starting a business, what would interest me about this company?
Why did I choose this company?
Put your answers into sentences and you have the beginning of your business pitch. Try to keep your sentences short and use simple words. You want anyone who asks to be able to understand your answer, not get lost in your words. Take special care to describe what you like about your business. These same things will generally appeal to others as well.
While you want to keep your pitch simple, you also want it to give a picture of your business. Let's say, for example, that you run health and wellness business. You wouldn't want to use the statement, "I run a health and wellness business," as a reply about what it is that you do. You want to add in a short description and catch the listener's attention. For instance, you might say, "I operate my own business. We offer products such as chemical-free shampoo and natural snack foods to help others lead healthy lives."
When I began my website, I was often caught off-guard when someone asked me about it. I would fumble for words and struggle to express exactly what it is that I do all day. I usually walked away from conversations like this feeling frustrated, and I'm sure the person I was speaking with was more confused than they were originally.
After learning the art of pitching, I can now give a short and snappy reply. "I run a Christian-based website for work-at-home moms," I'll say. "I offer resources to help them in their search and am able to make an income by offering advertising." This usually leads to more questions about my website, which is exactly what I hope for. It gives me an opportunity to talk further about my business to those who are interested.
The next time someone asks you about your home-based business, remember to share your pitch with them. Take the time to hone your pitch to be as short, yet descriptive as possible. Over time, you'll find yourself refining your words and your answers will become well-crafted summaries that pique the interest of anyone who asks. Word of mouth is one of the easiest ways to build your business and your pitch is a great way to get others talking.
Jill Hart is the founder of Christian Work at Home Moms,
CWAHM.com
. Jill is a contributing author in The Business Mom Guide Book and I'll Be Home For Christmas and co-author of the upcoming book, Home Based Blessings. Jill has articles published across the web on sites like DrLaura.com and ClubMom.com. Jill and her husband, Allen of CWAHD.com reside in Nebraska with their two children. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:10Z
Must You Hire A One-Armed Truck Driver?
Staff
http://www.DrLaura.com/b/Must-You-Hire-A-One-Armed-Truck-Driver
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2010-05-07T08:50:07Z
2010-05-07T08:50:07Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Must You Hire A One-Armed Truck Driver?
Cliff Ennico
www.creators.com
"I recently posted an advertisement for a delivery truck driver. Several individuals responded to the ad, but when I interviewed them I noticed that one of the applicants - a Gulf War veteran - had a prosthetic arm. I believe strongly in hiring veterans, and I realize they've made many technical advances in prosthetic limbs, but I'm really worried about this individual's ability to do the job. I'm also worried that if I hire one of the other qualified individuals, this guy will sue me for discrimination. What can I do?"
The federal Americans With Disabilities Act ("ADA" for short) absolutely prohibits discriminating against disabled persons. I congratulate this reader for knowing that the law applies even to small businesses. If a disabled person feels you are violating the ADA and making it impossible for disabled or handicapped individuals to find jobs with your firm, he or she can certainly sue for discrimination. Yet clearly there are certain jobs people with certain disabilities will never be able to do. How do you avoid discrimination lawsuits without being forced to hire individuals who cannot perform the jobs they have applied for?
First, make sure you haven't already discriminated against this individual during your initial job interview. Whenever you interview disabled or handicapped individuals for jobs, you have to be careful that you don't "signal" that you're focusing on their disabilities. So, for example, you would be totally out of line (and could well be sued) if you say something to this individual like "hey, you jerk, didn't you read my ad? I'm looking for a truck driver. How the Heck can you drive a truck with only one arm?" Even though you have a legitimate concern about this individual's ability to do the job, by focusing your attention on the person's disability you make it very likely this individual will feel he is being discriminated against.
The correct way to answer this question is as follows: "as you saw from our ad, one of the essential functions of this position is driving a truck. Are you aware of any circumstances that would restrict or prohibit you from performing that essential function?" I know, I know, it's tough to remember all that, and it does sound a little "legal-esy", but that's the way the law requires you to ask that question.
The next step is to determine if driving a truck is an "essential function" of the position you've advertise. Let's say you had a position that involved 95% clerical work, and 5% driving a forklift in your warehouse. If a person with a prosthetic limb applies for this position, he or she clearly can perform the clerical functions (the "essential" part of the job), but his or her ability to drive the forklift is in question. The ADA in this instance would require you to "restructure" the job and eliminate the forklift-driving component as a "reasonable accommodation" to the applicant's disability. Based on your e-mail message, I am assuming that driving a truck is an "essential function" of the job you've advertised.
You are correct in pointing out that medical science has made tremendous advances in prosthetic limb technology in the past few years. Since this applicant is neither blind nor illiterate, and presumably knows that he is applying for a position driving a truck, he obviously thinks his disability won't stand in the way of his being able to do the job. Why not have him prove his ability by performing a short driving test in one of your company's trucks? If you do:
be sure to test him under actual "combat conditions" (don't just have him drive around your parking lot; have him carry out an actual delivery so you can see firsthand how he is likely to perform on the job);
be sure to "ride shotgun" with him so you can evaluate his performance, and have another individual present during the test so he or she can corroborate your evaluation;
if you conclude that the applicant isn't qualified for the position, take detailed notes during the test documenting specific tasks he is unable to perform, and keep those notes in your employment records in the event he does sue you; and
most importantly, be sure you require this test of ALL applicants, so it doesn't look like you're singling him out because of his disability.
If he flunks the test - consider whether you might have another open position he might qualify for and, if you do, encourage him to apply for that position. Hiring a vet is one of the most noble things any small business can do, and you should go a little out of your way to find room for him in your organization. Not only is this the patriotic thing to do, but I think you'll find, as many of my readers have, that vets are incredibly loyal, grateful, disciplined, hard working employees, and can be a major asset to any small business. This guy did you (and a lot of other people) a big favor once by serving in the armed forces during wartime, and you owe him . . . big time.
Cliff Ennico (
cennico@legalcareer.com
is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:07Z
When You Realize You Really Goofed
Staff
http://www.DrLaura.com/b/When-You-Realize-You-Really-Goofed
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2010-05-07T08:50:05Z
2010-05-07T08:50:05Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>When You Realize You Really Goofed
Cliff Ennico
www.creators.com
"I am so confused and sick in the stomach about selling on eBay and the IRS. I have so many things around my home that I have been saving and collecting for many years now. My daughter is 22 and I have saved so much of her stuff from her childhood also. Not to mention I have always over the years loved shopping at yard sales and thrift stores which in return has caused my home to be very cluttered with closets running over. I have made myself stop buying from these places because I end up buying things I do not need. I also became addicted to eBay a few years back, and for about three years got caught up in buying way too many things. Mostly dolls, teddy bears, and old toys - mementoes of my childhood. I have them all over the house. Some of them I have donated to thrift stores and some I have been selling on eBay. Much of the stuff I list on eBay does not even sell and when I pay eBay's fees I suffer a loss, but some things I have gained on. I do not count on this for my income and never considered it a business. The thought of having to go back over the past few years and amend our tax returns because I may have made a profit selling something on eBay or in my local 'pennysaver' makes me feel ill with stress. I am afraid it is going to cause me to get sick with worry and enable me from functioning properly. I take medication for problems of excessive worrying, depression and anxiety and this is the kind of situation that can trigger me to get sick again and it scares me real bad. Thanks so much for any help."
A lot of longtime eBay sellers are waking up and finding out they should have been paying taxes on their selling profits. Unfortunately, I can't give this reader the "get out of jail free" card he so badly wants. Since he obviously didn't keep good records of what he sold and what he paid for it (most eBay sellers don't), this reader has no idea whether he made or lost money at the end of each year. While the amount of any profit or loss was probably small, given that these were household items and not precious antiques, still . . . the law is the law is the law. If you have a hobby and you make as much as One Dollar in profit, the IRS wants you to report the profit as "hobby income" on Form 1040 and pay the taxes on it. If you fail to do so, and the IRS picks up on it during an audit, you're toast.
For peace of mind, if nothing else, this reader should go back and attempt to figure out if he made a profit in any of the years he sold on eBay. If he can document that overall he lost money each year, then he's probably okay - the IRS does not require you to report "hobby losses" on your tax return (they actually prefer that you don't).
If the records show that this reader made a profit in one or more prior years, he has a difficult choice, neither of which will be stress-free. If he amends his tax returns for the prior years in which he made a profit, he will have to pay interest and penalties on the overdue taxes, and he may be "waking a sleeping Rottweiler" in the form of an IRS audit to see if he's failed to report any OTHER income. If he decides not to amend those returns, he will have many sleepless nights hoping he won't get audited until the statute of limitations on each return expires (currently three years from the filing date, unless the IRS suspects fraud, in which case there is no statute of limitations).
Is there anything this reader can do? Yes.
He can't change the past, but he sure can change the future. He should get into compliance this year, by keeping good records for any eBay listings and sales he makes during the current tax year which began on January 1. If he shows a profit at the end of the year, he should pay the taxes due plus a little extra, say 5%.
Why the extra 5%? In a word, "penance" for his past sins, and a little insurance in the event the IRS audits his past tax returns and discovers his goof. The IRS (and any other government agency, for that matter) is always going to go easier on someone who they see is working hard to get into compliance than they will someone who sticks his head in the sand and hopes the Bogeyman will go away. As an IRS agent once told me, "even a dog knows the difference between being kicked and being stumbled over."
Happy April 15, everybody, and remember: this is one of the many reasons we have liquor.
Cliff Ennico (
cennico@legalcareer.com
is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:05Z
When You Can't Trademark Your Name
Staff
http://www.DrLaura.com/b/When-You-Cant-Trademark-Your-Name
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2010-05-07T08:50:03Z
2010-05-07T08:50:03Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>When You Can't Trademark Your Name
Cliff Ennico
www.creators.com
"I have a business name that I am thinking of trademarking. My concern is, if I do not trademark the name and use it in business, what is stopping someone else from trademarking that name (after I begin using it) and taking it away from me? Is this possible?"
In the United States, the only way to protect an unusual or distinctive business name is to register it as a trademark with the PTO - the U.S. Patent and Trademark Office (
www.uspto.gov
). Not everything can be trademarked, however, and even if the PTO grants you a registered trademark, someone else can challenge it on a number of grounds (such as fraud, or infringement of another trademark such that the public will be confused between the two).
I've said it before in this column: if you have a name that a trademark lawyer says you can trademark, do everything short of violating the law to register the mark with the PTO. That is the only effective way to prevent other people from using the same or a similar name in the same or a similar business. Beg and borrow from your relatives to pay your trademark attorney's fees. Hit up your credit cards or lines of credit to do so. Getting that federal registration - which entitles you to put the "R in a circle" (reg;) next to your name - will deter a lot of bad guys out there who may be tempted to rip off your name once you start becoming successful.
But what if your name cannot be trademarked, or you just can't scrape together the money to register it? The law allows you to claim your name as a "common law" trademark by putting the letters "TM" next to the same wherever it appears. So, for example, "Succeeding in Your BusinessTM".
Technically, you're supposed to use the letters "SM" when claiming a common law mark for a service as opposed to a product, but the latest version of Microsoft Word doesn't have "SM" in the "Symbols" directory, only "TM", so you're stuck using that (memo to Bill Gates - while you're working the kinks out of Office 2007, could you fix this glitch, please? Thank you.)
As Mark Twain once said about investing, "if you have to put all your eggs into one basket, watch that basket!" The same applies to "common law" trademarks. If you are using one, be sure to document exactly when you first used the mark in interstate commerce. Keep files with examples of stationery, correspondence, product labels, marketing brochures and other literature that clearly shows the "TM" next to your name and the date(s) you were using that name in commerce. If someone who registers your name as a trademark later on claims they were "first to the courthouse" and tries to sue YOU for infringement, the burden will be on you to prove that you were using the name before the other guy did. You will need every scrap of evidence you can muster.
But I would go beyond that if I were you. Check the PTO's records on a monthly or weekly basis, and the minute you see someone has filed an application to register your name as a trademark, don't wait for the PTO to take action. Instead, file a challenge or protest of the other company's application, and let the PTO know you've been using the mark in interstate commerce before the application was filed. Your trademark attorney will know how to do this.
At the same time, your trademark attorney should send a scathing letter to the company that applied to register the same name as yours, telling them to withdraw their application and demanding that they "cease and desist" using your name. The letter (called a "cease and desist letter", appropriately enough), should be sent by registered or certified mail, along with copies of documentation showing exactly how long you have been using the common law trademark in commerce.
Common law trademarks can be effective, but only if you are diligent and stay on top of what your competition is doing. If a competitor registers your name with the PTO and continues using the name for five years without a challenge, the registration will become "uncontestable" and you won't be able to challenge it. While you may be allowed to continue using your name if you can prove you were using it in commerce before the other guy registered his "uncontestable" mark, if the other guy is a Fortune 500 corporation with millions of dollars and an army of lawyers to make your life miserable in court . . .
Cliff Ennico (
cennico@legalcareer.com
is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:03Z
Worker's Comp For Beginners
Staff
http://www.DrLaura.com/b/Workers-Comp-For-Beginners
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2010-05-07T08:50:01Z
2010-05-07T08:50:01Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Worker's Comp For Beginners
Cliff Ennico
www.creators.com
"I started out in business several years ago as a solo contractor. About three years ago, I hired my first employee, and today I have about five full-time and part-time people working for me. I have a terrific accountant, and have always paid my income and payroll taxes on time. About six months ago I had to lay off a guy because new construction was slowing down in our area. He filed for unemployment benefits, and now I'm getting nasty letters from my state Labor Department saying they need to audit my books. What's going on here, and why didn't anyone tell me about this?"
Sad to say, your predicament is a fairly common one for small business owners - especially those who, like you, started out as "solos" and then started hiring employees.
Life becomes much more complicated when you hire your first employee. Most people know that they have to pay employment or payroll taxes on their employees' wages, and hire a payroll service to do all of the necessary paperwork. But there's another set of laws in just about every state you have to be aware of when you hire employees. Unfortunately, accountants, lawyers and payroll services sometimes forget to tell you about them. These laws go under the general heading of "workers' compensation" or "workers' comp", and they can really trip you up if you're not careful.
There are three types of workers' comp program:
Workers' Compensation Insurance
. Traditional "workers' comp" is a form of insurance that provides compensation for employees who are injured in the course of employment. The idea is that by providing coverage for workers from state funds, the workers will be less likely to sue their employers for damages resulting from on-the-job injuries (yeah, right). Every state law is different, but virtually all workers' comp programs require you, as an employer, to purchase insurance in minimum amounts for each one of your employees, and keep the insurance policies up to date.
Most employers maintain only the minimum amount of coverage required by law, as they figure they "will be sued anyway" if an employee is injured on the job and that there is no real benefit to paying more than the minimum premium each year. In any event, workers' comp is no substitute for a general liability policy covering you against lawsuits resulting from injuries and accidents to ANYONE that happen on your premises.
Just about all states have a workers' comp program of some sort. To find out your state's requirements, go to
www.workerscompensation.com
and click on your state when the map of the United States pops up.
Unemployment Insurance
. In addition to workers' comp, many states require employers to pay into an "unemployment compensation" system that provides benefits to workers who are "between jobs". Once you hire your first employee, you are required to make periodic payments into the system. If you fail to make these payments, and a laid-off worker files for benefits, your state Department of Labor will view you as a "scofflaw" and will take legal and administrative action to bring your business into compliance.
To find out about your state's unemployment comp program, search on the Web for "[your state] unemployment compensation", or visit your state Department of Labor's Website.
Temporary Disability Insurance (TDI)
. Lastly, in Puerto Rico and five states (California, Hawaii, New Jersey, New York, and Rhode Island), employers and employees (through payroll deductions) are required to contribute to a "disability fund" to provide temporary benefits to persons who are unable to work due to employment-related injuries, or who become disabled while they are "between jobs". Some of these states allow employers to provide their own disability coverage for employees in lieu of contributing to the state program, but other don't. A useful summary of state TDI laws can be found on the Web at
workforcesecurity.doleta.gov/unemploy/pdf/temporary.pdf
.
Generally, if you are self-employed and have no employees, you are not required to provide worker's comp coverage for yourself, or pay into state Unemployment Insurance or TDI programs. You are also not required to provide coverage for "independent contractors" who work for you. However, if the IRS or some other government agency reclassifies your "independent contract" workers as employees, you will be getting a nasty letter from your state Labor Department demanding you make contributions retroactive to the date you first began working with them.
Some payroll services will help you comply with your obligations under state workers' comp, Unemployment Compensation and TDI laws. Sadly, however, most don't - they deal only with employment taxes. The only sure way to make sure you don't make any mistakes here is to retain the services of a good "labor and employment" attorney in your area BEFORE you hire your first employee or "independent contractor".
Cliff Ennico (
cennico@legalcareer.com
is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:50:01Z
Does Small Business Have A Future?
Staff
http://www.DrLaura.com/b/Does-Small-Business-Have-A-Future
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2010-05-07T08:49:59Z
2010-05-07T08:49:59Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Does Small Business Have A Future?
Cliff Ennico
www.creators.com
"A local Mom and Pop supermarket recently lost their lease to a nationwide pharmacy chain. Driving around town I#146;m seeing small businesses fold up shop left and right and big national chains moving in. I#146;m also reading that big company Websites are using their search engine advertising dollars to push smaller competitors off the critical #145;first page#146; of search results. I wanted to start a business, but I admit I#146;m a little depressed. Does small business have a future in this country?"
The answer depends to a large extent on how you define a "small business". If you#146;re thinking of the traditional model - a "brick and mortar" retail or service business run by a family - you probably will see less and less of that as time goes by. The causes are many:
skyrocketing real estate costs and property taxes in many parts of the country that are driving storefront and office rents dramatically upward,
increasing costs of living and a shortage of trained, qualified employees that are driving salaries and payroll taxes through the roof;
a legal system in which "anyone can sue anybody for anything", and often does;
the advent of the Internet, where with a few clicks of a computer mouse you can find out exactly where you can find the best deals and lowest prices for just about anything; and
perhaps most damaging, a consuming public that wants low prices and convenience above everything else, and doesn#146;t value the better service small businesses have traditionally provided to justify their (often) higher prices.
But the death knell of small business should not be sounded quite yet. In many ways, this is one of the best times in history to be running your own business. If you think my vision is too rosy, take at look at the "Future of Small Business" survey Intuit Corp. just released (they#146;re the folks who produce the "Quicken" and "QuickBooks" accounting software products). It#146;s available on the Web at
www.intuit.com/futureofsmallbusiness
.I won#146;t summarize the Intuit report here, because it really deserves to be read in depth. But since you asked (you did, didn#146;t you?), here is my own "crystal ball gaze" at where the small business world is going to be in 10 years#146; time, and a look at some macro-trends that probably will drive most Americans alive today into some sort of entrepreneurial career at some point during their lifetimes.
The Demise of the Behemoth Corporation
. Back in the 1970s, if you ran a billion dollar (in sales) corporation, you needed thousands of managers running the systems that made those businesses happen. Today, with the right information technology and strategic alliances, you can run a billion dollar corporation with fewer than 100 full-time employees. Look for tomorrow#146;s businesses to be much smaller, leaner and more entrepreneurial.
The Growth of Franchises and Chain Stores
. Most people, when asked, say they support small businesses. But their actions show they are not willing to pay higher prices to support them. Consumers today are time-starved, and they want convenience, low prices, and one-stop shopping over just about anything else. That favors chain stores and franchises over their standalone, Mom and Pop competition. There#146;s a franchise today for just about every retail and service business you can imagine.
Why are Mom and Pop operators being "assimilated by the Borg", buying franchises and managing chain store outlets? Because franchises and chain stores can pool their resources to advertise nationally, build brand recognition, negotiate rock-bottom prices for equipment and supplies, carry huge inventories (so customers can have immediate gratification of their desires and buy more stuff), and compete head to head with the big guys. Look for "brick and mortar" retail, especially, to be dominated by national brands in 10 years#146; time.
The Internet Retail Explosion
. Mom and Pop retail will survive, but it will be going online and working out of the house, because there#146;s little or no overhead. There are millions of small Web retailers offering just about every product and service you can imagine. Yes, big company Websites are using their search engine dollars to muscle out the little guys (hence the current debate in Congress about ensuring a "level playing field" on the Web), but "retail aggregators" such as eBay, Yahoo! and Amazon offer marketing programs that give members of their communities the wherewithal to compete online. Have you ever searched for something online and found an eBay listing or a Yahoo! Store on the first page of your search results? Enough said.
"Marketainment": The Key to Small Business Success
. Three books that should be read by every wannabe entrepreneur have nothing to do with business per se: they are "Amusing Ourselves to Death" by Neil and Andrew Postman (Penguin, $14.00), "Rejuvenile" by Christopher Noxon (Crown, $23.95), and "Life: The Movie" by Neal Gabler (Vintage Books, $14.95). Their point is a simple one: consumers who have been saturated with media since early childhood expect elements of entertainment, drama and "fun" in everything they do. Forget about providing your customers with great service - they won#146;t reward you. Give them a terrific show, and they#146;ll come back again and again.
nbsp;nbsp;nbsp;nbsp;nbsp;Cliff Ennico (
cennico@legalcareer.com
is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:49:59Z
You're Never Too Small For An E-Mail Policy
Staff
http://www.DrLaura.com/b/Youre-Never-Too-Small-For-An-E-Mail-Policy
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2010-05-07T08:49:57Z
2010-05-07T08:49:57Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>You're Never Too Small For An E-Mail Policy
Cliff Ennico
www.creators.com
"I know you're not a big fan of e-mail, but we're a small Internet auction company and we really couldn't live without it. We have three employees who all work from laptop stations in our office. What are some of the things we need to tell our employees to make sure they don't abuse e-mail and get us into trouble? Do we need to have a formal, written e-mail policy?"
Like it or not, e-mail is fast becoming the life blood of communications in America. It's convenient, it's fast, and it's a lot easier to get right down to business without a lot of socializing "small talk". It's also a lot easier to get into hot water, though, precisely because it's so fast and direct.
Any business with at least two employees should have an e-mail policy. Whether or not you pay a lawyer to draft one up (the cost should be in the $500 to $1,000 range, depending on where your business is located) is up to you, but I think it's a good idea. You would give a copy of the policy to each of your employees, and get them to sign a receipt acknowledging that they have read it and understand it. Most employers would also call a meeting of the employees at which you or your lawyer would "walk them through" the policy and answer any questions they may have.
Even if you don't want to create a "formal" e-mail policy, it's still a good idea to sit down with your employees at least once a year and explain what they can and can't do when using your company's laptops, personal computers and other equipment to send e-mail or text messages.
Here are some of the things your policy should include, whether written or not:
Employees are required to disclose all passwords and security codes to you, and are forbidden to change them without your knowledge. Employees are also prohibited from disclosing passwords to people outside the organization without your permission.
Employees are required to use e-mail for business communications only - no chatting with buyers on eBay or socializing on MySpace (unless of course that's an essential part of your business).
E-mail communications should be strictly prohibited if they are intended:
to gain knowledge of the affairs of others, with no business purpose for obtaining the information;
to send messages or prepare information that contains racial, ethnic, or sexual comments, or if they contain remarks which may be considered derogatory or libelous regarding co-workers, customers, competitors, or others;
to use the systems for any purpose detrimental to your business (for example, sending confidential information to a competitor);
to send messages containing information that is restricted by government security laws or regulations;
to copy or send documents or software in violation of copyright laws;
to forward messages without a legitimate business purpose under circumstances likely to lead to embarrassment of the sender or to violate the expressed desire of the sender to restrict additional dissemination;
to review or retain messages received which appear to be misaddressed;
to send chain letters, cartoons or other communications not directly related to your business;
to provide access to former employees;
to conduct job searches; and
to access or distribute any illegal material.
If you plan to monitor your employees' e-mail correspondence, be sure to tell them in advance you plan to do that. If you plan to "back up" e-mail files on a regular basis (and you absolutely should, in case you are ever sued and the plaintiff's attorneys demand copies of all electronic files relating to the dispute), tell your employees and warn them that even "deleted" e-mail messages can be retrieved using software that is easily available on the market.
Finally, you should consider limiting your employees' e-mail communications to 25 words or less, with a requirement that any longer messages be reviewed by an immediate supervisor before transmission. The longer the message, the more likely the sender will say something stupid, insensitive, emotional, ill-considered or inaccurate that will land you and your company in legal hot water. I know I'm in the minority here, but I still believe that the more important a message is, the more you should consider sending it in a manner other than e-mail. As a famous diplomat once said, "one should never put something in writing if one can say it, and one should never say something if one can nod one's head."
Cliff Ennico (
cennico@legalcareer.com
is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest books are 'Small Business Survival Guide' (Adams Media, $12.95) and 'The eBay Seller's Tax and Legal Answer Book' (AMACOM, $19.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:49:57Z
One Person's Parody Is Another Person's Lawsuit
Staff
http://www.DrLaura.com/b/One-Persons-Parody-Is-Another-Persons-Lawsuit
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2010-05-07T08:49:55Z
2010-05-07T08:49:55Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>One Person's Parody Is Another Person's Lawsuit
Cliff Ennico
www.creators.com
"I'm looking for creative ways to advertise my business on YouTube, MySpace and other 'social networking' Websites. One idea I had was to do video parodies of my competitors' advertising - my brother's a successful stand-up comedian and has come up with some hilarious ideas that I know would attract viewers on these sites. I really don't want to be sued, though. Do you have any suggestions?"
There are two basic things you need to know about parodies and satires, from a legal point of view:
parody is a form of protected expression under the First Amendment to the U.S. Constitution (which, among other things, guarantees "freedom of speech");
if the person or company you're making fun of doesn't like your parody, they will sue your pants off anyway, forcing you to spend tons of money in legal fees so you can assert and defend your First Amendment rights.
Don't get me wrong - an advertising parody, when done the right way, can be an extremely compelling and entertaining way to get your marketing message across, especially in these days of "viral" marketing where everyone (it seems) is e-mailing video clips to everyone else saying "hey, you gotta look at this!"
If done the wrong way, though, your parody may cost you your business, your house, and your sanity.
There are a number of ways you can get into legal trouble with parodies and satires. Here are some of the more common ones:
Copyright Infringement.
If you're going to parody someone else's work, you have to be sure the parody is all your original work and content. DO NOT "cut and paste" your competitor's advertising without their consent (which, of course, they won't give). For example:
you make a copy of your competitor's television ad and change the audio track so that the actors/characters in the ad are saying silly things - the competitor probably will sue you for "copyright infringement";
you shoot your own television ad from scratch, following the overall "story line" of your competitor's ad (not the actual word-for-word dialogue) but using children or dogs instead of grown-up actors for humorous effect - as you did not use any of your competitor's copyrighted content, their lawsuit for copyright infringement probably won't be successful.
Defamation, a/k/a "Libel"
. If your parody contains false or misleading statements about the competitor that are intended to injure their reputation (and pray tell, when does someone do a parody for reasons OTHER THAN injuring someone's reputation?), you are likely to be sued for libel. If the person you're sending up is a politician, movie star or other "public figure", you will have a strong defense on First Amendment grounds, as these people have to prove you acted with "actual malice" in creating the parody - a very difficult burden of proof.
If, however, the person you're parodying is a local competitor, a court will probably view him or her as a "private figure", and they will have to prove only that you were negligent in creating a parody that harmed their business.
"Misuse of Trade Dress"
. Make sure your video is clearly and obviously recognized as a parody. If you do TOO good a job at copying your competitor's content, people may mistake your "parody" for the real thing (i.e. they will think that it actually is your competitor's ad) and the competitor will sue you for "misuse of trade dress" (also sometimes called "trade dress infringement").
Invasion of Privacy
. If your parody calls people's attention to a fact about your competitor that he or she wouldn't want to be made public, you could be opening yourself up to an "invasion of privacy" lawsuit. For example, if your parody shows a monkey removing an extremely ugly toupee from an actor who is impersonating your competitor, and your competitor (unbeknownst to you) actually wears a hairpiece, you may be sued for advertising to the world that your competitor is bald.
One more thing: in the words of Irish author Brendan Behan, "there is no such thing as bad publicity, except your own obituary". If your parody is really good, it may actually backfire on you by reinforcing your competitor's advertising in the public mind. The good news is your competitor won't sue you; the bad news is your competitor will make tons more money off of your parody than you will.
For an excellent Website offering legal information and guidance to parodists, go to
www.chillingeffects.org
.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:49:55Z
The Cost Of Keeping A Corporation On "Life Support"
Staff
http://www.DrLaura.com/b/The-Cost-Of-Keeping-A-Corporation-On-Life-Support
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2010-05-07T08:49:53Z
2010-05-07T08:49:53Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The Cost Of Keeping A Corporation On "Life Support"
Cliff Ennico
www.creators.com
"My hairdresser is a psychologist in private practice and she is not incorporated. I keep telling her she has to be to protect herself in case she gets sued. She said someone told her it would cost her over $2,000 a year to do this. Do you know? What do you think?"
Frankly, I think all hairdressers are psychologists. It's just that this one has a license . . .
I'm a little surprised at the $2,000 quote for legal fees. It may well cost $1,000 to $2,000 to set up a corporation in most states, but once the corporation is set up the annual "carrying charges" aren't that much. Many states impose a "minimum tax" on corporations each year, but it's usually only in the $250 (Connecticut) to $800 (California) range. There's also a filing fee for an "annual report" you have to file with your state Secretary of State's office each year, but that's usually in the $50 to $100 range.
What may be going on here is that an attorney quoted her an "annual retainer" of $2,000 to keep the corporation alive each year. Some attorneys do this, and it's not at all unethical. In fact, it may actually save your life if you're not disciplined enough to do the corporate paperwork yourself.
When you form a corporation, there is certain paperwork that must be prepared on a regular basis each year. Fail to do the paperwork, and there's a risk that a judge may disregard your corporation - a procedure known as "piercing the corporate veil" - and allow a plaintiff to get at your personal assets if someone sues you. Paying an attorney an "annual retainer" guarantees that the necessary paperwork will be done correctly, and on time, so it will be there if you ever need your corporation to shield you against personal liability.
The idea is that you pay an attorney $2,000 a year as a "flat fee", and he handles all of the corporate paperwork (other than tax returns, which your accountant does) you need to prepare each year. The services that are normally included in an "annual retainer" arrangement are:
preparing resolutions of directors' and shareholders' meetings when your corporation needs to do something "outside of the ordinary course of business";
conducting the annual meetings of your directors and shareholders (generally required by law for corporations with more than one director or shareholder);
overseeing elections of your corporation's directors and officers;
preparing and filing the annual report to the Secretary of State; and
acting as your corporation's "registered agent" (basically the designated recipient of litigation papers and other important documents that are legally "served" upon the corporation).
The $2,000 would cover the attorney's time (i.e. you wouldn't pay by the hour for these services), but you still probably would be on the hook for the attorney's out-of-pocket expenses (known as "disbursements"), such as filing fees, postage, and overnight courier fees. The "annual retainer" also would not include fees for services other than routine corporate maintenance. So, for example, if you ask your attorney to negotiate a lease of office space for your corporation, or prepare an employment agreement with a senior executive, those services likely would not be included in the "annual retainer".
A valuable service indeed, but still $2,000 sounds a bit high to me. If the hairdresser asks around, she should be able to find an attorney willing to perform these services for an annual fee of $1,000 or less, plus expenses. Unless, of course, the hairdresser/psychologist's office is located in a high-rent district, such as midtown Manhattan, in which case $2,000 is probably a bargain.
One more thing: in most states, professionals (such as psychologists or lawyers) cannot limit liability for THEIR OWN professional malpractice by forming a corporation or limited liability company (LLC). If they have partners, they can limit their personal liability for THEIR PARTNERS' malpractice by forming a legal entity, but the corporation or LLC will not protect them against THEIR OWN malpractice. That's frankly why many "solo" professionals don't bother forming corporations or LLCs - they would rather spend the money on a drop-dead policy of professional liability (malpractice) insurance, in the hopes that a potential plaintiff will chase after the insurance policy and not try to seize the professional's personal assets.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:49:53Z
The Little "Gremlins" That Are Killing E-Commerce (Part Two)
Staff
http://www.DrLaura.com/b/The-Little-Gremlins-That-Are-Killing-E-Commerce-Part-Two
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2010-05-07T08:49:52Z
2010-05-07T08:49:52Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The Little "Gremlins" That Are Killing E-Commerce (Part Two)
Cliff Ennico
www.creators.com
You can forgive a small Mom and Pop business for not having its act together when it comes to e-commerce. But what if the company is a large one with a multimillion dollar budget, in fact a leader in the field of electronic publishing? That's when the little glitches in a company's Website really burn your breakfast.
Being a lawyer, I always like to order new lawbooks in December, so I can deduct the purchase price on my tax return. Most lawyers do this, and the major lawbook publishers (there are only about three left standing after a wave of industry consolidation) offer special discounts and sales at year-end to encourage lawyers to buy that $2,000 treatise on federal trade regulation they've been dreaming about (I know, I know, it doesn't take much to get lawyers excited . . . )
And so last week I attempted to access my account on the Website of a leading lawbook publisher (I won't mention names, but they know who they are). I typed in my username and password, and . . . nothing happened. I tried it three times, and each time received a message saying "error - page cannot be displayed." I figured that maybe I had forgotten my password, so clicked on the "Forgot Password?" prompt. Within minutes I received an e-mail message with my password -- the same one I had typed in initially.
Time to pick up the phone, and brave the company's automated customer service hotline ("automated customer service" is an oxymoron, like "jumbo shrimp" or "strong weakness"). After six levels of "make your selection" and a few minutes of horrible holiday music, a very nice Indian gentleman named "Al" picked up the phone. I explained my problem to him, and we spent the next several minutes reconfiguring my username and password. When nothing worked, Al put me on hold, saying he was going to discuss the problem with the company's "technical support" team.
In other words, the company's customer service hotline in India had to call the company's technical support hotline (probably also based there) and had go through the same rigamarolle I did to get to a human being. After several minutes, Al got back on the line, apologized for the delay (I can't really knock Al - he was very nice, clearly doing his best, and seemed about as frustrated as I was that he couldn't solve the problem) and repeated to me what the company's technical support team told him -- that the automated "account access" system was down and wouldn't be back up again for the next two weeks.
Two weeks! At the company's busiest time! I asked Al if he could take my order, but he apologized and said I would have to call the company's sales department. I thanked Al (sincerely) for his time, wished him a happy holiday (assuming there is a holiday in India that is observed this time of year), and hung up.
And dialed up the Website of the company's leading competitor. And registered an account there (which I didn't have before). And bought a book that competes with the book I wanted to buy originally. Yes, I could have called the first company's sales hotline as Al recommended, but by this point I was pressed for time and frankly didn't have the patience to scroll through another "telephone tree" before reaching another human being.
For those of you wishing to join the e-commerce parade, here are a few tips:
Your customer is ordering online because it is fast and convenient - any aspect of your online ordering system that slows the customer down or throws roadblocks in her path will be viewed by the customer as a moral failing on your part;
Make sure there is no system "down time" during peak periods of customer demand - if you must perform scheduled maintenance and upgrading of your system, do it at a slow time of year and beef up your "offline" customer support;
If your system is down, be sure to explain that to the customer in simple English (i.e. no cryptic "error" messages) so the customer doesn't think (as I did) that he or she was doing something wrong; and
If you provide "live" support for your Website, make sure your customer service reps know what's going on so they can perform "damage control" and prevent you from losing orders and customers.
It all boils down to simple respect, folks. If you treat your customers with respect, and show that you value their time as much as you do your own, you will find they will put up with the occasional gremlin. If, however, you waste their time and give them the choice of blaming either themselves or you - tell me, which way do you think they're going to go?
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2007 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:49:52Z
Finding Balance and Meaning in a Nine-to-Five World
Staff
http://www.DrLaura.com/b/Finding-Balance-and-Meaning-in-a-Nine-to-Five-World
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2010-05-07T08:49:50Z
2010-05-07T08:49:50Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Finding Balance and Meaning in a Nine-to-Five World
By Mike Cook
www.thrivebook.com
I have actually heard people say that the way they are at work is "not really the way they are." I cannot think of a sadder declaration about the conditions of one's life than that. Work should not be a life sentence for suffering.
The idea of work-life balance is an illusion we create. The reality is that we have only one life, about one third of which we spend earning a living.
So, how do you want to live your life, in and out of work? That's the question everyone seeking happiness and a sense of balance should be asking. What are your conditions of satisfaction? What are your material aspirations? How much do you need to earn to meet them? How much are your time and skills worth? What kinds of people do you prefer to work with? What kind of work really turns you on, makes you sing?
I encourage people who are grappling with these questions to see the workplace as an ideal setting for personal growth and transformation. This quest is what I call "walking around spirituality." It means treating your job as your life's work-behaving and interacting with clients, coworkers, and customers in such a way that you enrich yourself and all those who come in contact with you.
Those among us who are the most fun and inspiring to work with are leading satisfying lives. They are not necessarily the highest paid or highest placed folks in the organization-that may not even be their prime motivation. We admire these people because they are true to themselves. They have found a balance, not between life and work, but between being and doing.
They are being who they want to be, and doing what they want to do. Here are some simple guidelines that might very well help you find more meaning and balance in your work and life.
Follow your calling. Some tasks are not worth doing. Unless you have a calling to the work, there is a high probability that it will not be done well. The people who feel happy and satisfied at work at those who are working well at something they consider important. Some of the time it will be interesting, some of the time it will be entertaining, and some of the time it will be boring and difficult. But even when it is boring or difficult, it should still feel important to you.
Work in a state of awareness. Day-to-day life in the workplace can be dangerous because the opportunities to go to sleep, or operate on automatic, abound. Try to be fully aware of your behavior and decisions and what your life's mission and purpose are. Stay awake to each opportunity for self-growth and knowledge.
Embrace interdependency and interconnection. One of the great paradoxes of life is that we are put here in separate compartments, and yet we are always part of something much greater than ourselves, something that we affect and something that affects us. Whatever we do or don't do has an impact on the lives of others-that is just the way it is. Therefore, we have a certain responsibility to each other, which is also true in the place we work.
Take responsibility. Many people in today's world are not getting everything they need, either in life or in the workplace, and they are beginning to suspect that maybe this has something to do with
them
, not their circumstances. Take responsibility for your peace of mind, personal transformation, or attitude overhaul. The workplace is a perfect laboratory as you search for your own truth, for the obvious reason that you spend so much of your life there.
Stay young. Staying young boils down to waking each morning with a sense that you still have places to go and things to do, and you are grateful for the opportunity to have a future. Make your life into a learning experience from beginning to end, and from nine to five. Meet life on its own terms and adopt a student's mind in doing so.
Express gratitude. In many people's experience, the single most missing element in their day-today work lives is appreciation. Remind yourself, through the practice of saying thank you-that other people at work don't have to support you; their support is a gift. That they get paid is immaterial to the notion of your being grateful.
Accept circumstances without judgment. See business realities for what they are and accept them without judgment, thus creating the condition for acting freely. You cannot control your circumstances, but you can choose your path.
Have integrity. Be completely true to what you know is right and what you feel you must do, regardless of the immediate cost or sacrifice. Be honorable and behave decently in and out of work.
If you sense the "something is just not right" in your work life, consider that what you may actually be sensing is a gap between your "being" and your "doing" that is causing you discomfort. How do you want to "be" in your job and in your life? In the workplace setting, the most satisfied and successful players are those who have found a way to integrate spiritual common sense (being) with exceptional workplace behavior and business performance (doing).
Mike Cook is founding partner of Vitalwork, Inc.
www.vitalwork.com
, a leadership development firm that helps companies and employees compete in the outsourced economy. His new book is
"Thrive: Standing on Your Own Two Feet in a Borderless World"
(St. Lynn's Press). Permission granted for use on DrLaura.com
Staff
2010-05-07T08:49:50Z
The Little "Gremlins" That Are Killing E-Commerce (Part One)
Staff
http://www.DrLaura.com/b/The-Little-Gremlins-That-Are-Killing-E-Commerce-Part-One
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2010-05-07T08:49:48Z
2010-05-07T08:49:48Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The Little "Gremlins" That Are Killing E-Commerce (Part One)
Cliff Ennico
www.creators.com
During this holiday shopping season, there is going to be a lot of ballyhoo in the press about how more people than ever are doing their holiday shopping online, and how the Internet is going to kill traditional "brick and mortar" retail.
This is not going to be one of those articles.
This was the year I decided to do all of my holiday shopping online. After all, when you're convinced that the Internet is the future of retail, shouldn't you put your money where your mouth is?
Well, based on three experiences this past week, I must regretfully conclude that it's going to be a while before everyone does all of their shopping online. There are a lot of "gremlins" - some technical glitches, some the result of really bad customer service -- that will need to be worked out before online shopping becomes the instant, seamless, "real time" process that it's being touted to be.
Case # 1: my Mom loves brass monkeys. Not the animal, the cocktail. For the unenlightened (or the merely sober), a "brass monkey" is a concoction of vodka, orange juice, and dark rum, with a little umbrella added for effect. Years ago Heublein included the brass monkey in their line of premixed, prebottled cocktails, but Mom has had trouble finding them lately as her local liquor stores are focusing more on wine and beer.
So I went online looking for a case of brass monkeys to give Mom this Christmas (let it never be said that I'm not a dutiful son).
After some searching (you would be amazed what pops up in the search results when you type in "brass monkey"), I came across an online liquor store in southern California that specializes in hard-to-find items, and lo! They had a listing for "Heublein Brass Monkey Cocktails". Now, since Club took over the Heublein brand a number of years back and now markets all of the former Heublein products under the Club name, the reference to Heublein should have given me a clue that this Website might not be 100% up to date. But no matter - the Website looked otherwise to be very professional, with a very efficient checkout and "shopping cart", and I was able to place my order for a case of brass monkeys in about 30 seconds.
I did think it was a little odd that the site didn't ask me my age at any point, but I figured that anyone ordering a case of Polynesian cocktails from the 1950s probably didn't need to prove they were underage.
Two days after placing my order, I received an e-mail confirmation of my purchase . . . with an AOL return address. Uh oh. Serious e-commerce operations do not use AOL as their Web server. Home based Mom and Pop businesses do.
Then I read the confirmation, which was accurate but contained the following cryptic (and ungrammatical) statement at the end: "All submitted orders does NOT guarantee shipment [sic] and will go through our verification process first. Your payment information will only be charged after your information has been verified."
What do they mean by "verification"? Does it mean checking me out to make sure I'm of legal drinking age? Great, but how do they do that with only my credit card information? How long will the verification take? And how long after that before the brass monkeys ship (I do need them by Christmas after all)? I sent this company an e-mail message asking for answers, and have done so each day since then, but haven't yet received a response. I tried calling the customer service telephone number that appears on their home page (not a toll free number), but the phone merely "rings off the hook" - there's no automated customer service, not even an answering machine.
Not exactly the way to conduct your e-commerce business, folks. Marsha Collier (
www.coolebaytools.com
), a leading eBay expert and author of "Santa Shops on eBay" (John Wiley, $16.99) says that for an e-commerce Website to be taken seriously, "the customer should get an e-mail confirmation immediately upon placing the order, and shipment within 48 hours." Amen.
Since this is clearly a Mom and Pop operation, I am willing to cut them a little slack and give them a little time to get their act together. What happens, though, when the culprit is an established company - in fact a leader in electronic publishing? More next week . . .
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:49:48Z
There's A Franchise For Just About Everything...
Staff
http://www.DrLaura.com/b/Theres-A-Franchise-For-Just-About-Everything...
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2010-05-07T08:49:46Z
2010-05-07T08:49:46Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>There's A Franchise For Just About Everything...
Cliff Ennico
www.creators.com
The conventional wisdom says nobody is starting small businesses or buying franchises anymore because of the currently strong economy. Because people can now find "safe" jobs in corporate America, the conventional wisdom says, they're less likely to take the risk of starting a business from scratch, with no regular paycheck, no benefits, etc., etc.
And, as is often the case, the conventional wisdom is wrong, wrong, wrong.
I've been bouncing around the country attending and speaking at trade shows the past couple of weeks, including the annual Connecticut Franchise and Self-Employment Showcase sponsored by The Entrepreneur's Source (
www.theesource.com
), a franchise brokerage network that is itself a franchise.
With 25 national franchises in attendance at the one-day event, and several hundred attendees from just about every New England state looking to learn more about franchises, I can assure you that franchising is still very much alive and kicking, thank you.
Steve Lehman, the organizer of the yearly showcase and an Entrepreneur's Source counselor based in Fairfield, Connecticut (
slehman@optonline.net
), explained the record attendance: "The traditional career economy no longer exists. It's up to each individual to utilize their skills to position themselves to become self-sufficient and take control of their own destiny. If they don't do it, they'll end up working for someone that did." Lehman said that the demand for franchises from Baby Boomers age 45 and up -- who are nervous about being "left behind" in the shrinking world of large U.S. corporations but who are also nervous about starting a business from scratch without the "handholding" and support that franchises offer - is stronger than ever and continuing to grow.
Thinking of starting a basic retail or service business? There probably is a franchise already doing it. If you think I'm kidding, consider the following actual franchises:
Ageless Remedies (
www.agelessremedies.com
), a skincare and "apothecary" medspa franchise offering a variety of skin care treatments (warning: in many states you have to be a physician to buy one of these);
AllOver Media (
www.allovermedia.com
) - help small businesses in your area with "nontraditional" advertising and promotional solutions (think gas pump and taxicab rooftop ads);
Aussie Pet Mobile (
www.aussiepetmobile.com
) - you buy a truck and go to people's homes to groom their pets;
Colorworks (
www.colorworksusa.com
) - fix the paint scratches on people's cars;
1867 Confederation Log Homes (
www.confederationloghomes.com
) - hey, this is how Abe Lincoln got started;
Entrees Made Easy (
www.entreesmadeeasy.com
) - people come to you and tell you what they want for dinner the next several days - you cook the meals for them, and they heat the meals up at home;
Expense Reduction Analysts (
www.expense-reduction.net
) - you help businesses cut their costs, and take a percentage of the cost reduction;
Fibrenew (
www.fibrenew.com
) - repair leather, vinyl and plastic auto seats and home furnishings;
Instant Imprints (
www.instantimprints.com
) - customize teeshirts, banners, signs and promotional tchotchkes for local businesses;
Interface Financial (
www.interfacefinancial.com
) - you buy a small business' invoices at a discount and collect from the customers;
Mad Science (
www.madscience.org
) - set up children's parties with science-oriented themes, games and fun projects;
ProShred (
www.proshred.com
) - you go around to offices shredding their documents in the back of your truck (hmm . . . a lot of potential Government work here . . . );
Robeks (
www.robeks.com
) - a restaurant chain offering fruit smoothies, yogurt drinks and other "healthy fast food" products;
Spanish Fun (
www.spanishfun.net
) - teach Spanish to preschoolers;
Winfree Business Growth Advisors (
www.winfree.org
) - consulting and coaching services for small business owners and entrepreneurs (hey, wait a minute, that's what I do!).
Even if you're NOT thinking about buying a franchise, it's a good idea to check out the franchises that are engaged in the business you are thinking of starting on your own. Sooner or later, as these franchises grow, they will be "in your face" and you will have to deal with them as competitors. If there's a franchise with a compelling business model doing the type of business you want to do, maybe it's a sign you should call them and offer to be their local franchisee before someone else does. Just be careful . . . a lot of franchises my clients are looking at right now are "early stage" and haven't thoroughly tested their business models yet.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:49:46Z
ABCs for the Work at Home Mom - Part 1
Staff
http://www.DrLaura.com/b/ABCs-for-the-Work-at-Home-Mom---Part-1
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2010-05-07T08:49:45Z
2010-05-07T08:49:45Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>ABCs for the Work at Home Mom - Part 1
By Jill Hart
CWAHM.com
Work-at-home moms face many different challenges. From learning to accept help when needed, to building confidence in ourselves, to remembering the reasons why we chose to work from home. Below is the first in a series of tips to help work-at-home moms in the simplest of ways - the ABC's.
A = Adjustments. A work at home mom must expect the unexpected. She must be prepared to adjust her schedule at any given moment for any number of reasons - a sick child, a backed up drain, or an upset client. A mom who learns to welcome these moments as a chance to show love to her family and concern for her clients will be ahead of the game in the end. Approach these "interruptions" with a great attitude and see what a difference it makes.
B = Better. Works at Home Moms have to be on top of their game. To run a business as well as manage a household takes determination and scheduling. You may not feel like you have a schedule, but take a look at your day/week and see how you are spending your time. Next, think about what you can do better, what you can delegate and what would be better off removed from your schedule to allow you to spend your time in a better manner.
C = Confidence. You wouldn't be a work at home mom without it. Take time to celebrate each success no matter how minute it may seem. Each success will help grow your confidence and turn you into a savvier businesswoman.
D = Dry - Don't let things dry up. Keep content fresh, offer new products and services whenever possible. This will keep you motivated and keep customer returning.
E = Effort - Don't kid yourself. It takes a TON of effort to make a home-based business successful. Don't give up with thing get rough. Keep plugging away - it will pay off
F = Feisty - Every work at home mom has to be at least a tad bit feisty. :) Stand up for your business when need be - don't be afraid to say no when necessary.
G = Generosity - When I fist began my business I sought advice from many successful work-at-home moms. One of the best pieces of advice I received was that what I gave to others would come back tenfold. I've found that to be very true. Helping others is as much a blessing to me as it is to others.
H = Help - There will come a time that you'll need help. You must be willing to accept it, to allow others to do for you what you cannot. In turn, try to be a help to other when they are in need.
I = If - If you don't do it, who will? Mothering is such an important role that gets overlooked so often these days. Always remember that being there for your children is the BEST gift you can ever give them.
J = "Just for you" - Take a little time to do something just for you each day. Even 5 minutes of doing something you enjoy can revive a tired mommy.
K = Keep - Keep your chin up. It will get better. Don't let a lag in business growth get you down. Find some creative ways to get the ball rolling again.
L = Laugh - Take time to laugh with you kids each day. And don't be afraid to laugh at yourself when need be.
M = Mommy - Remember, the reason you do all that you do is for those little ones who call you "Mommy."
Working from home can be difficult, but it is well worth the effort. By keeping things in perspective we can reduce the stress that we put on ourselves. Remember these ABC's and you'll go far in your work-at-home career.
ABOUT THE AUTHOR: Jill Hart is the founder of Christian Work at Home Moms,
CWAHM.com
. Hart is also the co-author of the upcoming book, Home Based Blessings, due out in November 2006 for Christian moms who want to work at home. Hart and her husband, Allen of CWAHD.com (Christian Work at Home Dads) reside in Nebraska with their two children.
Permission Granted for use on Dr.Laura.com
Staff
2010-05-07T08:49:45Z
Dallas "King Of Customer Service"
Staff
http://www.DrLaura.com/b/Dallas-King-Of-Customer-Service
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2010-05-07T08:49:42Z
2010-05-07T08:49:42Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Dallas "King Of Customer Service"
Cliff Ennico
www.creators.com
Here's a pop quiz: who are your most important employees? You? Your senior managers?
I humbly submit that your most important employees are those, regardless of rank, with whom your customers actually come into contact. You can talk all you want to about customer service and how important it is, but if your "front line" employees don't get it, neither will be your customers.
I was in Dallas last week giving a presentation at the Dallas Convention Center. The center was only about four blocks away from my hotel, but they were long blocks, and between the 90-degree heat and a recent leg fracture that prevents me from walking long distances, I needed a cab to get back to the hotel after my presentation. I waited over 20 minutes, and couldn't get a cab to save my life. When one driver heard where I was going, he just took off, looking for a better fare.
I was beginning to think about risking the long (for me) walk to the hotel when a member of the Convention Center's maintenance staff named Jerrold (according to his name tag) drove up in a beat-up old golf cart. "I see you're having trouble getting a cab. Where are you going?", he asked. I told him, and he said "get in, I'll take you there." I looked at the golf cart and said "in that thing? You can't drive this on a city street."
Jerrold smiled at me with a mouth only half-full of teeth, and said "We don't need no roads. Hop in!"
I did, and for the next 15 minutes we drove the four long blocks to my hotel . . . ON THE SIDEWALK . . . at about five miles an hour, fast enough that pedestrians had to jump out of our way. In a golf cart, there is nowhere to hide, but to make 100% sure we were seen by everyone in Dallas, Jerrold honked his horn and waved at every pedestrian he knew (Jerrold is a popular guy in downtown Dallas, and he had clearly done this before).
As the golf cart lurched around lampposts and trees, sometimes missing them only by inches, I started a conversation with Jerrold:
C:I really appreciate this, Jerrold. I know it's a short distance, but I've got a bum leg and I really can't walk it.
J:It's my pleasure, sir.
C:Don't call me 'sir'. The name's Cliff.
J:I can't help that. It's how my Momma raised me. She taught me to treat everyone I meet with respect, no matter who they are.
C:Your Mom is a very wise lady. People rarely treat others with respect anymore.
J:Man, you know that! And it's a shame. You don't have to be in love with someone to treat them like they're somebody special. Because you never know. It's like one of those movies where you help somebody out, and he turns out to be an angel in disguise. You never know who that person is going to be. For all I know, you may be an angel!"
C:(Laughing). It's not likely, Jerrold. I'm a lawyer.
J:Yeah, but if you really WERE an angel, that would be a really good disguise, don't you think? You'd fool a lot of people with that one!
C:You got a point there. So, Jerrold, tell me - how do I know YOU'RE not an angel?
J:Oh, you can ask my boss or my Momma about that, sir . . . they'll tell you!
C:Don't call me "sir".
By this point we had reached the hotel. I offered Jerrold a $20 tip, which he declined. He dropped me off and, with a wave of his hand, drove the golf cart back up on the sidewalk and headed back to the Convention Center, parting the pedestrians like Moses parting the Red Sea . . .
Memo to the Dallas Convention Center: you have a beautiful human being on your maintenance staff who knows more about customer service than most entrepreneurs do. His name is Jerrold, and he may or may not be an angel. Treat him with respect, because he deserves it, and also because if you don't he'll tell his Momma on you. And that's one lady I sure wouldn't want to mess with . . .
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:49:42Z
When You Really Have To Fire Someone: Ten Tips [Part 2]
Staff
http://www.DrLaura.com/b/When-You-Really-Have-To-Fire-Someone:-Ten-Tips-Part-2
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2010-05-07T08:49:40Z
2010-05-07T08:49:40Z
Staff
2010-05-07T08:49:40Z
Before You Sign That Nondisclosure Agreement
Staff
http://www.DrLaura.com/b/Before-You-Sign-That-Nondisclosure-Agreement
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2010-05-07T08:49:40Z
2010-05-07T08:49:40Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Before You Sign That Nondisclosure Agreement
Cliff Ennico
www.creators.com
"I left corporate America a while back to start my own consulting firm. I've pitched my services to a couple of large companies, but nobody will even talk to me until I sign their standard form of nondisclosure agreement (NDA). I realize this is standard practice, but I'm started to get nervous that I might be 'signing my life away'. Could you give me some tips on what to look for when I'm given an NDA to sign?"
Nondisclosure agreements (NDAs for short), also called "confidentiality agreements", are the bane of the independent consultant's existence. Most companies won't talk to you until you sign one, because they're nervous you will blab all of their trade secrets to competitors - something you as a professional would never do anyway. Most NDAs are fairly harmless, but every once in a while you will see some "gotchas" in these. Here's what to look out for.
First, look at how the company defines "confidential information" in the NDA. Is the company required to tell you (preferably in writing) that something is confidential, or are you required to keep EVERYTHING you get your hands on confidential, including the copy of
The Wall Street Journal
you happen to pick up in their office lobby? If it's the latter (most attorneys use a "shotgun" rather than a "rifle" approach when drafting NDAs, because they really don't know what kind of information the company is going to show you) make sure the "laundry list" is reasonable. Look out for language that requires you to keep secret the "existence of a business relationship" with the company - this may prevent you from using the company as a reference after your consulting job is finished.
The "laundry list" should include only items (such as customer lists and intellectual property) that any company would view as confidential and proprietary. If the list includes intangible items such as "ideas", "know-how", "skills", "concepts" or "knowledge" - be careful. The company might look at anything you learn on the job as confidential, which can cause problems for you down the road (see below).
Every NDA contains two basic agreements:
an agreement that you will keep all Confidential Information strictly confidential, and will not disclose it to anyone without their approval; and
an agreement that you will not "use" any Confidential Information for any purpose other than to perform your consulting duties for the company.
The first clause (called the "nondisclosure" clause) is relatively harmless - make sure you are permitted to disclose Confidential Information to your attorney and other employees of the company "if necessary in connection with the performance" of your duties under the agreement.
It's the second clause (called the "nonuse" clause) that can sometimes be a "gotcha". If not carefully drafted, this clause can act as a "backdoor noncompete agreement", preventing you from working for other companies where you would have little or no choice but to use knowledge and information you gained while working for the company that made you sign the NDA.
Most NDAs have a clause requiring you to return copies of all Confidential Information in your possession when the consulting job is done. Make sure this clause allows you to destroy the information instead of returning it as long as you certify to the company in writing that you've destroyed it. Otherwise (unless you keep meticulous records) the company may demand that you return information months or years after the consulting job is over and you just . . . can't . . . find it.
It's probably a good idea to have an attorney look at the first few NDAs you are asked to sign - most attorneys will only charge a half-hour of their time. After you've done a few, you should know enough to be able to spot the issues on your own.
One more thing: beware the company that "buries" an actual noncompete clause (as opposed to a "nonuse" clause) in the fine print of their "standard" NDAs without clearly labeling the agreement a "noncompete and nondisclosure agreement". If a company doesn't notify you of the noncompete language, and you spot it when reading over the NDA, save yourself some legal fees, hand the (unsigned) form back to them, and walk out the door.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:49:40Z
When You Really Have To Fire Someone: Ten Tips [Part 1]
Staff
http://www.DrLaura.com/b/When-You-Really-Have-To-Fire-Someone:-Ten-Tips-Part-1
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2010-05-07T08:49:37Z
2010-05-07T08:49:37Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>When You Really Have To Fire Someone: Ten Tips [Part 1]
Cliff Ennico
www.creators.com
"I run a small printing business, and have decided to fire one of our employees for some very good reasons. She comes in late every day, is rude to co-workers (they all hate her), and has begun badmouthing the business to some of our key customers. My fear is, of course, that she will sue me. She is our only female employee, and is over 50 years of age. She also told me she is taking medication for depression. We have other workers in that age range, but no other females. I really need to get rid of her, but I can't afford to be sued either. What should I do?"
If you had to describe every employer's worst nightmare, this one comes close.
Firing an employee - looking someone straight in the face and telling them they no longer have a source of income - is one of the toughest things you will ever do when running your own business. It's often as hard on the person giving the bad news as it is on the person receiving it. And yet it still needs to be done, especially in a situation like this where a rebellious employee is "poisoning the well" and bringing the entire business down with her.
And yet, employees DO have rights, and we should all be thankful we live in a society in which they do. If the real reason you are firing this person is because you want to make this business a "boy's club" from which women are excluded, she has every right to sue you for discrimination. Do a little soul searching before you read further, and make sure you don't have any "secret motives" that could cause you legal trouble down the road.
Assuming there aren't any, and assuming this person is an "at will" employee - someone who doesn't have an employment contract that guarantees employment for a specified time period - here are ten tips to help you remove the cancer from your business with a "zero to low" risk of being sued for wrongful termination.
Check your past feedback. If you have been giving this employee glowing performance reviews and a raise each year, she will understandably be shocked when you call her into your office and give her the boot. Look back at your relationship with this employee, and if you have been sending her overly positive signals, do not fire the employee immediately. Instead, start changing the signals and let her know in no uncertain terms that she's not "living in Kansas anymore".
Give her a warning. Because she is your only female employee, I would suggest that you not fire her outright. Instead, sit her down in your office, explain that you are unhappy with her performance, and give her a limited period of time (I would suggest 30 days) to turn things around. Make it very clear that if she continues to badmouth the business to customers and suppliers, you will "have no choice but to" terminate her immediately. Prepare a "memo to the file" detailing what you told her.
Focus on specific behavior goals. DO NOT focus on her status as a female, or the fact she is taking medication. DO NOT allow the employee to drag you into such a discussion. Instead, give the employee a list of behaviors you find unacceptable, and tell her exactly what she needs to do to get back into your good graces.
Have a witness present. Do not meet with this employee alone. Because she is the only female in your office, she may claim that you made unwanted advances or attempted to harass her sexually. Have a witness present at every meeting with this employee - I would recommend that person be a woman, such as your wife or a female relative, that will make your employee feel more comfortable that you are not singling her out because of her sex. Oh, and if you're engaging in an extramarital affair, make sure the witness is not the "other woman", as you are then opening yourself up for blackmail (please don't laugh; I could tell you stories . . . )
Fire early in the week, never on Friday. Assuming the employee does not turn things around for the better (given what you're saying in your e-mail, it's highly unlikely), fire her early in the work week. Never fire someone on a Friday, because then they can "stew about it" over the weekend, and come into work the following Monday ready for a fight, or even worse.
More next week . . .
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:49:37Z
Putting "Cool, Compelling Content" In Your Newsletter [Part 2]
Staff
http://www.DrLaura.com/b/Putting-Cool,-Compelling-Content-In-Your-Newsletter-Part-2
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2010-05-07T08:49:35Z
2010-05-07T08:49:35Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Putting "Cool, Compelling Content" In Your Newsletter [Part 2]
Cliff Ennico
www.creators.com
You can't sell anything to anybody unless you first get their attention with the "three C's" -- "cool, compelling content". If your marketing literature, newsletter or Website lacks the "three C's", you might as well be sending out spam e-mail for all the good it will do.
Let's take the three C's in reverse order.
"Content" - it isn't enough anymore to say "here's what I've got to sell; it's really great!" Your newsletter or Website must have something on it that will inform people or explain something, like the "Cleaning News" article about dust mites in last week's column. Right now you are standing on dust mites: there may even be some in your hair or clothing. Bet you didn't know that, huh?
What is more, your "content" must be freely available, especially if you are selling on the Web, because people expect information on the Internet to be free. If you go to my Website at cliffennico.com, you will see links on my home page to a number of articles I've written over the years answering the "most frequently asked questions my small business clients ask". Not sure what type of legal entity to set up for your small business? You can download, absolutely free, my five page "Demystifying the Business Organization" outline: sit down with this thing tonight over a cup of strong coffee (okay, maybe a VSOP brandy) and you will come away knowing as much about LLCs and corporations as most attorneys do.
People in America these days are highly educated (or think they are), they do NOT want to be condescended to, and they are extremely afraid of being "taken" because they didn't know enough when they entered the marketplace. They appreciate it when you take the time - without charge or obligation -- to give them the information they need to make an intelligent choice. Putting free information on your Website or newsletter is a great way to tell them "hey, you can trust me - I know how confusing this stuff is, and I care very much that you make the right decision about buying X."
"Compelling" - in today's fast paced marketing environment, you only have a couple of seconds to grab your customer by the throat and get his attention. Look at the Website of most attorneys, and what will you see? A photo, a biography, and maybe a list of articles the attorney has written for prestigious law journals (the latter obviously to impress you with the size of the lawyer's brain). Forgive me, but isn't this information pretty useless when you're thinking about hiring an attorney? Do you really care what your attorney looks like, as long as she is competent and can get the job done for you?
The four things you want to know when you hire an attorney are:
is the attorney experienced?
has she ever done before the work I need done?
can I communicate with this person?
how much will it cost me?
If I don't find the answers (or at least some clues) on your Website, I'm looking for another attorney! Especially if you are selling services, you have to know what your customers are looking for, and make sure they see it (and nothing else) on your Website.
Finally, your sales spiel has to be "cool". People don't want to be lectured anymore - they had enough of that in school. They want to be entertained, amused, stimulated, even aroused by your advertising. The best marketing you can get on the Web is to have people e-mailing each other saying "hey, check out this guy's Website! This guy's a lawyer, but he's really down to earth and even has a sense of humor!" Tell me you're not going to look at my Website after reading that . . .
Think back to your childhood, and try to remember some of the ads you saw on TV. I guarantee all the ones that will come to mind were fun, entertaining or inspirational in some way. My entire philosophy of life comes from an early 1970s commercial for Schlitz beer: "You only go around once in life, so you gotta grab all the Gusto you can!" (Remember that one, my Baby Boomer brethren? You probably haven't thought about Schlitz beer in decades, but you haven't forgotten the slogan, have you?)
Giving your market the three C's - "cool, compelling content" - won't guarantee that your business will succeed. It will, however, dramatically improve your odds of getting your market's attention, and that can only be a good thing. Because if you can't keep 'em awake, you can't sell 'em anything.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:49:35Z
Putting "Cool, Compelling Content In Your Newsletter [Part 1]
Staff
http://www.DrLaura.com/b/Putting-Cool,-Compelling-Content-In-Your-Newsletter-Part-1
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2010-05-07T08:49:33Z
2010-05-07T08:49:33Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Putting "Cool, Compelling Content In Your Newsletter [Part 1]
Cliff Ennico
www.creators.com
"I am planning to launch an e-mail newsletter in an effort to promote a local service business. But I'm not exactly sure what should go in it. I don't want the newsletter to sound too 'salesy', yet at the same time I want people to know about the excellent service I provide. Do you have tips for people in this situation?"
It's a lot harder than it ever used to be to "broadcast" your marketing message to folks. Thanks to the Internet, we are living in a "pull" world when it comes to advertising. You can't "push" your message into people's faces anymore, because there are too many ways for people to block the message out. Instead, your customers have to find you, and seek out your message.
As a syndicated columnist, I get more than 50 e-mail newsletters every day. Some of these I actually signed up for, but most of them are from well-meaning friends, publicists and nonprofit organizations who have put me on their list along with just about every business journalist in these United States.
I use the "preview" pane in Microsoft Outlook, so when an e-mail arrives from an unknown source I can scan it quickly and figure out if it's worth opening. It takes me about 2 to 3 minutes to scroll through my morning e-mail, hitting the "delete key" merrily as I go. If you are trying to reach me with your marketing message, you've got exactly 2 seconds and about five or six words to catch my attention before I move on.
You're not about to do that unless your newsletter contains some "cool, compelling content" that reaches out, grabs me by the throat and doesn't let go - what I call the "three C's" of Internet marketing.
A number of years ago, a middle school English teacher in our town started a part-time business cleaning people's windows and carpets. He realized that most of his business would come from repeat customers. So whenever he cleaned someone's carpets or windows, that homeowner was added to a subscription list to his quarterly newsletter, which he called:
THE CLEANING NEWS!!!
"The Cleaning News!!!" (the three exclamation points were part of the title) was a single-page newsletter printed on both sides. The headline was done in 14 point Gothic script on a professional looking masthead - just like the New York Times - and was accompanied by his slogan, "All The Dirt You Need To Keep Your Home Clean!".
You would open the envelope, and jumping out at you would be his lead story, something like "IT'S DUST MITE SEASON ONCE AGAIN!!!", accompanied by a quarter-page photo of a dust mite blown up 5,000 times. Ever see a dust mite up close and personal? Trust me, it is one UGLY bug . . .
The story would begin, "these hideous creatures are living in the carpet you are walking on - RIGHT NOW - in your bare feet!" Stephen King and Dean Koontz combined had nothing on The Cleaning News!!!
The second page was a series of tongue-in-cheek household cleaning tips in "question and answer" format, along the following lines:
"Q:Is it all right to use a toothbrush to clean the tile grout in your shower stall?
A:Yes, this is perfectly acceptable, but remember not to use it as a toothbrush afterwards."
Silly? Ridiculous? Unprofessional? Let me ask you two questions:
do you like the author of "The Cleaning News!!!"?
would you hire him to clean your carpet?
Enough said. "The Cleaning News!!!" was not junk mail. It was LITERATURE. People looked forward to each issue. People saved copies of "The Cleaning News!!!" and showed them to their friends at work. People called this guy and ASKED to be put on the mailing list for what was essentially an advertising flyer!
You can't sell anything to anybody anymore unless you first get their attention with "cool, compelling content". More next week . . .
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:49:33Z
Taking Customers With You When You Change Jobs
Staff
http://www.DrLaura.com/b/Taking-Customers-With-You-When-You-Change-Jobs
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2010-05-07T08:49:31Z
2010-05-07T08:49:31Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Taking Customers With You When You Change Jobs
Cliff Ennico
www.creators.com
"For the past several years I have been employed by a local accounting firm. During this time I have developed close relationships with several of the firm's clients. A number of these clients have been dealing exclusively with me as opposed to the firm's partners, and I view them (rightly or wrongly) as 'my' clients. I am leaving the firm shortly to set up my own practice in the same town, and would like to notify these clients of my change in status, but I'm afraid the firm will sue me for 'stealing business'. I've never signed any sort of non-compete agreement with the firm. What are my legal risks here?"
First of all, no business "owns" its clients or customers. People are free to use whatever service providers they like, and agreements that prevent them from doing so are often viewed as illegal "restraints of trade" and are struck down by the courts.
Second of all, this situation is every employer's worst nightmare. You spend years training someone in the hopes they will help you grow your business, and the next thing you know they've quit and taken half your customers with them. Shame on this accounting firm for not requiring all of its employees to sign a "non-solicitation" agreement, in which the employee promises not to contact any of the firm's customers or clients for a period of XXX months after leaving the firm's employment for any reason. Unlike non-compete agreements (which prohibit ex-employees from working in the same field or profession within a certain geographic area), non-solicitation agreements are viewed as a legitimate effort by a business to protect its goodwill, and are often upheld by the same courts that routinely strike down "non-competes".
Still, even though your firm did not make you sign a non-solicitation agreement, you may have some legal liability to your former employer if you blatantly try to steal its customers.
To date, 42 states have adopted some form of a statute called the "Uniform Trade Secrets Act". If your state has adopted a version of the Uniform Trade Secrets Act, you are prohibited from stealing your employer's "trade secrets" and using them for your own benefit, even without a written agreement with the employer.
In most states, a firm's client list would be considered a "trade secret" unless its content can be "readily obtained through some independent source". So if you download the firm's entire client list onto a computer diskette or CD and send a letter to everyone named on that list announcing the opening of your new firm, your old firm will almost certainly view that as a theft of its "trade secrets" and will sue you for that.
However, taking out an advertisement in a local newspaper (or a local Chamber of Commerce publication) saying that "Joe Blow, formerly with XYZ Accounting Firm, has now opened his new office at ____________" probably will not be viewed as "trade secret" theft, as you are making a general solicitation to the entire community that is not targeting your old firm's clients (even though virtually all of them read the same local newspapers and trade publications).
What about directly contacting clients with whom you had a personal relationship during your tenure at the accounting firm? While there can be no guarantee your firm will tolerate any solicitation of business, consider:
limiting the solicitation to those clients for whom you are the "sole and exclusive" firm contact - if you do most of the client's work but the client plays golf with your boss every week, you are not the "sole and exclusive" firm contact and should avoid soliciting that client;
waiting until after you leave the firm before sending any e-mail or written correspondence to that client with your new contact information; and
not offering the client any discounts or "deals" you wouldn't give to someone who walks in off the street.
Under no circumstances should you remove any client files, documents or other client-specific information from the firm when you leave, even if a client says it will follow you. Your solicitation to the client should include a "form letter" for the client to send to your old firm terminating the client relationship and requesting that all files be transferred to your attention. If the client owes any money to your old firm, be prepared to wait until that gets settled before you get the files.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:49:31Z
Can An LLC Member Put Himself On The Payroll? - Part I
Staff
http://www.DrLaura.com/b/Can-An-LLC-Member-Put-Himself-On-The-Payroll---Part-I
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2010-05-07T08:49:29Z
2010-05-07T08:49:29Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Can An LLC Member Put Himself On The Payroll?
(Part I)
Cliff Ennico
www.creators.com
"My brother and I have a limited liability company (LLC) for our garage business. My brother really is the 'workhorse' in this business - I put in the startup money, and I sometimes do the books - and it's a pain in the neck for him to have to figure out his estimated taxes four times a year. Isn't there a way we can put him on a payroll, pay him a regular salary, and withhold taxes just like we would for an employee who didn't own a piece of the business? You won't believe this, but I've spoken to three different accountants and I've gotten three different answers. Help!"
I'm not surprised at all. This is one of the toughest tax questions involving LLCs, and I have devoted at least three prior columns to this subject.
Let's begin with the basics. Your LLC is treated as a partnership for tax purposes unless you choose to be taxed another way. If an employee is not a partner (owner) of the business, you can put her on a payroll, withhold income, Social Security (FICA) and Medicare taxes, and deduct her salary the same as if you were a corporation.
If the employee is also an owner of the LLC (called a "member"), however, the rules start to get complicated. Legally, a member of an LLC cannot receive a "salary" as such from the LLC. There are only two ways a member can get cash out of the LLC: she can either take a "draw", or take a "distribution" of the LLC's profits.
A "distribution" to an LLC member is like the dividend a corporation pays to a shareholder - it is a partial return of the monies the member has invested in the LLC, and is based on the member's percentage of the LLC's net income or profit. So, for example, if you and I are 50/50 members of an LLC, and I take out 50% of whatever's left over in the LLC checking account at the end of a particular month (with your approval, of course, so there's enough money in the account to pay future expenses), that is considered a "distribution". A "distribution" does not reduce the LLC's income for tax purposes (it is precisely the LLC's income that is being distributed), and the member taking the distribution must pay all income and self-employment tax on the distribution.
A "draw" is an amount paid to a member for services rendered to the LLC, or to reimburse the member for LLC expenses the member has paid out of her own pocket (for example, many members use their personal credit cards to pay LLC expenses in order to obtain "frequent flier" miles the LLC wouldn't qualify for).
A "draw" reduces the LLC's income for tax purposes, and the member taking the draw must pay all income and self-employment tax on the "draws". If a member "draws" more than $1,000 during a calendar year, she must estimate the taxes due on the "draws" and pay the estimated taxes four times a year. If a member is allowed to "draw" specific amounts on a regular schedule (like a salary), the "draws" are referred to as "guaranteed payments" for tax purposes.
According to Fairfield, Connecticut CPA Russell Abrahms (
rlabrahms@aol.com
), an LLC can deduct guaranteed payments, which are treated as ordinary income to the member who receives them. While admitting that it is a "pain in the neck" for members to have to estimate and pay taxes on their guaranteed payments quarterly, Abrahms says "the brother may actually end up paying less taxes that way than if he were to take a payroll deduction". He explains that "in some states - such as Connecticut - employers who withhold taxes from their employees' wages have to make payments into the state unemployment compensation or disability fund, which members taking a 'guaranteed payment' type draw don't have to do."
Abrahms also points out that in this case, the nonworking LLC member may have to pay self-employment taxes (FICA and Medicare) on the draws he takes out of the LLC account. Because he "sometimes does the books", he's not just a passive investor in the LLC. "This is a very hot issue in the tax community right now," says Abrahms, "and we need to delve into the business details before we can determine whether a member's 'draws' or distributions will be subject to self-employment tax."
So does anything bad happen if you put an LLC owner on the payroll and withhold taxes from her "guaranteed payments"? See next week's column . . .
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:49:29Z
How Much Does It Cost To Sell On Ebay?
Staff
http://www.DrLaura.com/b/How-Much-Does-It-Cost-To-Sell-On-Ebay
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2010-05-07T08:49:27Z
2010-05-07T08:49:27Z
Staff
2010-05-07T08:49:27Z
Working From Home - Plan Ahead For When Disaster or Tragedy Occurs
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http://www.DrLaura.com/b/Working-From-Home---Plan-Ahead-For-When-Disaster-or-Tragedy-Occurs
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2010-05-07T08:49:27Z
2010-05-07T08:49:27Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Working From Home - Plan Ahead For When Disaster or Tragedy Occurs
by Jill Hart
CWAHM.com
Disasters or family tragedies can strike families in many forms - Mother Nature, sickness and even computer problems can cause major difficulties for your business. Do you have a plan of action on how you will handle your home-based business if disaster were to strike? If not, you absolutely need to. Having a plan ensures that you can not only keep your business running, but decrease stress because you have already prepared for the unexpected.
Below are four tips to help you handle the unexpected.
Work around the events -Your customers will understand as long as you communicate with them. Be honest that things may take a little longer than usual, but keep your customers updated as often as possible. Communication is the key. Most people will understand the delay as long as they are aware of it. If you get to the point where you cannot work or cannot finish a project, but sure to be clear and honest about the situation and try to make an arrangement that will be acceptable. Also, let them know as soon as possible so they can prepare. Don't wait until the last minute to advise them of a potential problem.
If you're struggling because of a child being sick, try to work when the child is sleeping and don't stress yourself out to work at other times. Make a schedule of what needs to be done, so that you can accomplish as much as possible during these times.
Don't be afraid to ask for help - As moms, we tend to feel that we should be able to handle everything that is thrown at us. Unfortunately, this just isn't always the case. There are times when we need to allow ourselves to ask for help. When a tragedy occurs and you are simply overwhelmed, find someone who you trust and ask them for help. Many times, just having someone reply to customers on your behalf can take the pressure off your shoulders.
Allowing someone to help you when necessary can also be uplifting to them as they feel they can be a part of helping in a difficult situation. So don't shy away from letting others know. We all benefit when we work together and help one another.
When our one-year old had surgery he didn't handle the pain medication well. He was wide awake for the better part of two days. In this case, I knew ahead of time when the surgery would occur, but I had no idea what his recovery would entail. It was impossible to work while he slept, because he wasn't sleeping. I realized that I not only needed help business-wise, but I needed help with him as well so that I could get some rest. While it was humbling to admit that I needed help, that I couldn't do it all, it turned out as a great time spent with family that we would not have had if I hadn't asked for help.
Prepare for the worst - Because we never know what the future holds, it is always better to be prepared. As the old saying goes, "Better safe than sorry." One of the best resources to help you prepare is the
Home Office Recovery Plan: Disaster Preparedness for Your Home Office
by authors Diana Ennen and Patty Gale. This e-book covers all the bases of getting a Disaster Recovery Plan in place now so that if disaster strikes your home business or an emergency arises, you are able to get your business back up and running quickly and smoothly.
Ennen states, "In my case, this guide has been a lifesaver as a resident of South Florida. I have prepared for eight major hurricanes in the past two years with Hurricane Katrina and Hurricane Wilma taking a direct hit on Broward County where I live. I was without power for two weeks with Hurricane Wilma. Had I not prepared, my clients would have suffered as would my business."
Gale also knows the importance of this book having lived in New York after 9/11 and had the task of preparing a similar guideline for a company she was working with at the time. Both know the importance in ensuring your business will withstand whatever this hurricane or any disaster (including a theft in the office or fire) has to offer.
Get a Plan - There are times when life becomes overwhelming and you simply aren't able to accomplish everything on your own. It's for these times that you need to have some type of log of what you do and what needs to be done. Keep a spreadsheet of tasks that you do, how often they are done and mark them completed as you are able. Keep a list of passwords in a safe, secure place. Make sure that your family (or whoever may be helping you during this time) is able to carry on even in the event that you are away from home.
If possible, train someone that you trust to do the things that you do each day (at least the key things), so that when the unexpected arises you won't be caught off-guard.
Tragedy comes in many shapes and forms, but if you are prepared much of the unnecessary stress can be avoided. When tragedy strikes, you want to be focused on the important things in life, your family and you. By advance planning you are able to do so.
Jill Hart is the founder of Christian Work at Home Moms,
CWAHM.com
. This site is dedicated to providing work at home moms with opportunities to promote their businesses while at the same time providing them spiritual encouragement and articles. Visit
CWAHM.com
. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:49:27Z
Should You Use A "Do It Yourself" Incorporation Service?
Staff
http://www.DrLaura.com/b/Should-You-Use-A-Do-It-Yourself-Incorporation-Service
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2010-05-07T08:49:25Z
2010-05-07T08:49:25Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Should You Use A "Do It Yourself" Incorporation Service?
Cliff Ennico
www.creators.com
"I'm thinking of setting up a corporation or limited liability company (LLC) for my small retail business, but the attorneys around here charge a bloody fortune to do the paperwork. I surf the Web a lot, and I see countless Websites that offer to set up a corporation - usually in Delaware or Nevada - for under $200. This seems like too good a deal to be true. Are these services legitimate and, if they are, what am I not getting by using one of these instead of an attorney?"
There is nothing wrong with using a "do it yourself" service to set up a corporation or LLC, but be careful. An online service may give you a brochure or DVD illustrating the differences between corporations and LLCs generally, but they won't give you one-on-one advice. That's considered "practicing law" or "practicing accountancy", and only a licensed professional can do that.
When looking to set up a corporation or LLC for your small business, it's best to consult with a lawyer AND an accountant to determine the type of entity (corporation, S corporation or LLC) that will give you the most legal and tax advantages. Once you've settled on a particular entity, though, you can (if you wish) go to the online service and save some money getting the paperwork done. Just remember that if they make a mistake, you can't sue them for malpractice.
There are some pretty reputable online incorporation services now that are giving the legal profession a run for its money. Intuit Corp. (which publishes the QuickBooks(r), Quicken(r) and TurboTax(r) software products) recently acquired MyCorporation Business Services, Inc. (www.mycorporation.com), a Calabasas, California based incorporation service. Other major players online are LegalZoom (www.legalzoom.com) and BizFilings (www.bizfilings.com). There's even a franchise called "We the People" (www.wethepeopleusa.com), that prepares incorporation and other simple legal documents, with 166 brick and mortar locations in 29 states.
But beware. There are a lot of "fly by night" incorporation services that will take your money, file a generic incorporation form with your state Secretary of State's office, and leave you to figure out the rest. When looking at a "do it yourself" incorporation service, you should ask six questions:
Will they register your entity with the Secretary of State's office? Virtually all online services do this, but if they're charging less than $200, that's probably all they're doing.
If you're incorporating in a state other than your own, will they help you find a "registered agent" to act as your local mailing address in that state? Most online services do this, but will send you the bill for the registered agent's service fee (usually $150 to $250 a year).
Will they provide you with the internal corporate documents (such as bylaws, minute book, corporate resolutions, and share certificates) you need to run your business day to day? Some services do this, but most do not.
Will they give you notice of filing deadlines on an ongoing basis? Only the better services do this.
Will they register your entity with the IRS and get you a taxpayer ID number? Again, only the better services do this. And finally:
Will they help you register your entity for state and local taxes (including sales taxes, since you are a retailer)? I'm not aware of any online service that will do the actual registration for you, but some will tell you that this is a necessary step, and the better ones will offer you some assistance (such as a link to your state tax authority's Website) to make sure the job gets done.
Until steps number 1, 5 and 6 have been performed, you are not legally incorporated, and it will be only a matter of time before you receive a nasty letter from a government agency saying you owe them something. Even using one of the very best "do it yourself" incorporation services, you will probably have to hire an accountant or attorney to help you with step # 6.
One more thing: I've said it before in this column and I'll say it again -- there is absolutely no reason for a small business to be incorporated in Delaware or Nevada unless it is physically located in one of those two states. Forming a Delaware or Nevada entity when you're actually doing business in Wisconsin will not protect you one bit from Wisconsin state and local taxes, and you shouldn't believe anyone who tells you otherwise.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:49:25Z
"Pulling" Your Customers On The Internet: Part Two
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http://www.DrLaura.com/b/Pulling-Your-Customers-On-The-Internet:-Part-Two
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2010-05-07T08:49:22Z
2010-05-07T08:49:22Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>"Pulling" Your Customers On The Internet: Part Two
Cliff Ennico
www.creators.com
Once you have optimized your Website for search engines, you don't just sit there waiting for the "hits" to happen. It is now time to engage in "search engine marketing" - creating ads for your Website that will appear next to the search query results when someone is searching for the stuff you sell.
Internet marketing expert Catherine Seda (
www.searchmarketingmastery.com
) recommends that you start with "pay-per-click" advertising on Yahoo!, as it's easier than Google for new advertisers to figure out. When you buy a "pay-per-click" ad on Yahoo!, Google or one of the major search engines, you are "bidding" for placement on that engine's search results. You create a short (usually less than 50 words) ad, tell the search engine how much you are willing to pay for each "click" from the ad to your Website, and that's pretty much it. When a person is searching for something you sell, and they see your ad, they "click" on the link to your Website, and the search engine automatically debits your credit or ATM card for the amount you indicated (full disclosure: most search engines charge a minimum monthly fee, currently $5 for Yahoo!, whether you get any clicks or not). Simple enough, right? Well . . .
Let's say I decide to place an ad for "small business attorney" on Yahoo! I create a wonderful ad, and offer to pay that search engine ten cents (the minimum amount for ads on Yahoo!) each time someone clicks on my ad. My ad will appear on Yahoo!, all right, but on page 50 of the search query results for "small business attorney". How many times have you searched for something and looked at the 50th page of the query results? To get anywhere with search engine marketing, your ad needs to appear on the first or second page of the query results. For that to happen with my "small business attorney" ad, I would have to pay the search engine about $50 per click. That can add up to a significant bill each month in a real hurry, and there's no assurance that anyone who "clicks" my ad and gets to my Website (triggering a $50 fee for the search engine) will actually buy something once they get there.
So how do you get around that? Simple - make your ad as narrow and targeted as possible. While a ten-cent ad for "small business attorney" won't get me anywhere, a ten-cent ad for "NY small business attorney" will get me on page two of the query results. If I raise the ante to 25 cents, I'm on page one. Of course, that narrows the range of "searchers", but the ones looking for a small business attorney in New York are the ones I really want anyway. I will get fewer "hits" from the search engine ad, but (hopefully) a higher percentage of serious folks who will actually contact me once they get to my Website and see how truly wonderful I am.
Once you've listed some pay-per-click ads on Yahoo!, what next? According to Seda, if you're selling services, start "blogging". Create your own "blog" (or Weblog) to show that you're an industry leader. By sharing helpful information (or just some wild, crazy and cool stuff), you will invite blog readers to hire you. On the Web, nothing beats "buzz marketing" - a friend, colleague or someone other than my Mom or my PR person who tells you "hey, Joe, you've got to check out this guy's crazy blog. He's a little off the wall, but he really gets what we're trying to do here!" For advice, start with "Blogging for Dummies" by Brad Hill (Wiley, $21.99) and "Blog Marketing" by Jeremy Wright (McGraw-Hill, $24.95).
If you're selling products, look for Websites with already heavy traffic, and try to become their "affiliate" - they let you have an ad on their home page in exchange for putting an ad on your home page (plus perhaps some cash). For example, if you're selling antique toys from the 1800s and early 1900s, an ad on the Antique Toy World magazine's Website (
www.antiquetoyworld.com
), will be worth its weight in gold. Here's a tip: look for high-traffic Websites that are offering stuff that complements, but is not the same as, your merchandise. One of the most successful Web merchants in the "vintage art poster" market doesn't sell posters at all, at least not on the Web. Rather, he makes and sells the high-end "acetate free" folders you use to store vintage posters that you don't want to frame and hang on your wall. Just about every "vintage poster" Website has a link to him - because all vintage poster collectors needs these folders -- and I don't think he paid more than a few dollars (maximum) for all that advertising. And if you ask him nicely, he does have a few really good posters in the "back room" he might be willing to part with . . .
Finally, since you are selling clothing, housewares, or any sort of collectibles, you should seriously consider opening an eBay Store (stores.ebay.com). For a monthly fee starting at $15.95, you can list dozens of items on eBay, and for a little more eBay will even help promote your eBay Store to the major search engines so you don't have to figure out the finer points of "pay-per-click" advertising yourself. Have you ever searched for something on the Internet and had someone's eBay Store or auction listing pop up as one of the top listings? Enough said. A new book, "Launching a Successful eBay Store", by Ron Mansfield (Pearson Education, $24.99), gives you all the details.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:49:22Z
"Pulling" Your Customers On The Internet: Part One
Staff
http://www.DrLaura.com/b/Pulling-Your-Customers-On-The-Internet:-Part-One
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2010-05-07T08:49:20Z
2010-05-07T08:49:20Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>"Pulling" Your Customers On The Internet: Part One
Cliff Ennico
www.creators.com
"I am a small one person business selling football-related collectibles. I have had my own Website since 1992 -- almost one of the first people to have a site. Over the years, of course, technology has drastically changed, and my positioning on internet searches like Google has dropped significantly as more and more people are getting into this game. How can I improve upon this without spending an arm and a leg? Do you know of anyone that can offer improvements and make those changes on an existing Website? I would ideally love to get a focus group to critique my Website, but I know that can run into a small fortune. Do you have any ideas, suggestions or references to help out us small guys?
Hold on a second - you have had a Website since 1992, and only RECENTLY has your position in the search engine rankings gone down? Must be one heck of a Website . . .
There was a time, not too long ago, that I used to think the phrase "Internet marketing" was a contradiction in terms. Traditional marketing is all about "pushing" products to consumers, and on the Internet you cannot "push" or force viewers to see things they don't want to see. An entire industry of software products - from antispam filters to "pop-up" blockers - has sprouted up overnight for the specific purpose of preventing marketers from getting their messages through to you when you're online. You cannot "push" on the Internet, but what you CAN do is "pull" them to your Website. On the Web, the consumer runs free like a wild stallion, going wherever its head takes him. You are the one who must "corral" the free-range consumers and lead them to your water. When people go looking for stuff on the Internet, what do they use? A search engine, of course. That's where your advertising focus should be - letting the consumers think they have found you, and have made the "free choice" to click on a link to your Website and see what you've got to offer.
The first thing you have to do is "optimize" your Website for search engines, so that when people go looking for the stuff you sell, the engine lists your Website as one of the top ten "hits" that show up on the search query results page. This is as much an art than an exact science, and involves picking the most commonly used "keywords" people use to search for your stuff and making sure those "keywords" are embedded in your Website so the search engine "crawlers" can find them.
Since you have limited funds, it may be worth your while to learn how to do this yourself. Several how-to books exist on this subject, most notably "Search Engine Visibility" by Staci Thurow (Pearson Education, $29.99), "Search Engine Advertising" by Catherine Seda (New Riders, $29.99), and "Search Engine Optimization for Dummies" by Peter Kent (Wiley, $24.99).
If doing anything yourself on a computer gives you the willies, there is a growing industry of search engine optimization (SEO) consultants who for fees ranging from a few hundred dollars to a few thousand dollars can use advanced statistical methods to help identify the keywords that will drive search engine traffic to your Website. A search for "SEO Consultant" on any search engine will yield about 500,000 results, many from computer professionals in India and other parts of the world who may be willing to provide world-class service for a much lower rate than U.S. consultants. The Organization of Search Engine Optimization Professionals (
www.seopros.org
) was formed in 2001 to develop "best practices" and standards for this industry - go to their Website and click on "SEO Consultant Directory" for a list of their members nearest you.
Once you have optimized your Website for search engines, you don't just sit there waiting for the "hits" to happen. It is now time to engage in "search engine marketing" - creating ads for your Website that will appear next to the search query results when someone is searching for the stuff you sell. More on that next week . . .
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:49:20Z
Five Steps to Get Your Priorities Straight in Business and At Home
Staff
http://www.DrLaura.com/b/Five-Steps-to-Get-Your-Priorities-Straight-in-Business-and-At-Home
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2010-05-07T08:49:18Z
2010-05-07T08:49:18Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Five Steps to Get Your Priorities Straight in Business and At Home
By: Jill Hart
Operating a successful home-based business is a time-consuming endeavor. This is doubly true as work-at-home moms in that we are responsible not only for the success of our business, but for our family as well. We must be self-reliant, self-motivated, and discipline ourselves in order to attain success in both areas.
When running a business from home, it's easy to let the phone calls, emails and paperwork keep you tied down, making you feel that you don't have time to take a break or to spend quality time with your family. Maybe you've noticed that you spend a little more time than you'd like in front of your computer or on the phone. Maybe you see your kids acting out, trying to gain your attention. Perhaps you are seeing that this isn't the work-at-home dream you envisioned. You started out with such noble intentions, but maybe the excitement of success in your business has caused you to lose sight of the REAL reason you do what you do each day. It happens to so many of us, but don't worry, help is on the way.
Below are five ideas to prioritize your life and business:
Be honest - You probably didn't start your work-at-home career to climb the "corporate ladder" of your at-home business. Chances are that you started your business with the best of intentions - to be able to be at home with your children, to contribute financially to your family, or simply to have a little spending money of your own.
Take a moment and honestly ask yourself how you've been handling the time commitment of owning a business:
Are you spending too much time on the phone, the computer, etc?
Are your kids spending more time than usual in front of the TV?
Do you snap at your children because of the stresses of your business?
Do you worry about your business - to the point that it distracts you when you are with your family?
Make a list - Sit down and write out a list of things that you see that you'd like to change. This can be a list of things you can do differently to limit the time you spend on your business; or a list of ways you can "de-stress" so that you can deal kindly with your family.
Log your time - Buy a notebook or create a spreadsheet that you can use to log the time you spend on your business each day. Make a column for each day across the top and a row of half an hour increments down the side. Every time you sit down at your desk, write "IN" in the box that corresponds to the time and day. Every time you leave your desk (or complete a task), fill the appropriate box with the word "OUT."
At the end of the week, total up the hours each day that you have spent on business tasks. Are you surprised or is it about where you thought you'd be? This can be a real eye-opener and show you in black and white if your priorities have gotten off track. Take special note for how much time you spend on e-mails and things that aren't billable.
Diana Ennen of Virtual Word Publishing,
www.virtualwordpublishing.com
also recommends that you plan ahead and schedule your time. Prioritize things and have the work that will require the most effort and concentration scheduled for your peak time. Try and not get sidetracked and stay on task focusing on what you need to do. You'd be amazed how much more work you can get done by simply changing how you work e-mails. If you only answer them at set hours, you save yourself from being online all day and not accomplishing much.
Take a break - If you get to the end of the week and your time log has you in shock; it's time to take a break. If you normally work during the weekend, make it a point to take this weekend off. Shut down your email, turn off the ringer on your phone and shut the door to your office. You'll be surprised at how refreshing this will be.
Use this time off to re-evaluate how you need to be spending your time. Try to plan out when you can work on your business without losing out on time with your children. If your children are in school, make it a point to stop working when they get home. If your children are still small, maybe you can limit work hours to naptime or, if possible, have a grandparent watch them once or twice a week to allow you a bit more work time.
Plan an activity - Now that you're ready to make a change in your routine, why not plan an activity once a week? This can be an outing with your child or just something simple like setting aside time to make cookies together.
If possible, find another work-at-home mom and hold one another accountable to keep to your new schedules. Make a weekly play date where your children can spend time together - you can talk business if necessary or decide to make it a "no business talk allowed" discussion time.
The years that you have at home with your children are a gift as is your business. The time necessary for each will be different for every family and situation. Take the time to find what works for you and set your schedule accordingly. Make it a point to evaluate your priorities every few months to make sure that your time is spent properly. The rewards will be well worth it, when your family not only is proud of your accomplishments in your business, but also more importantly your accomplishments as their mom.
ABOUT THE AUTHOR
Jill Hart is the founder of Christian Work at Home Moms,
CWAHM.com
. This site is dedicated to providing work at home moms with opportunities to promote their businesses while at the same time providing them spiritual encouragement and articles. Visit
http://www.CWAHM.com
for additional information. Jill and her husband, Allen of CWAHD.com (Christian Work at Home Dads) reside in Nebraska with their two children. "Permission Granted for use on Dr.Laura.com."
Staff
2010-05-07T08:49:18Z
When Your Ebay Buyer "Goes Postal"
Staff
http://www.DrLaura.com/b/When-Your-Ebay-Buyer-Goes-Postal
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2010-05-07T08:49:16Z
2010-05-07T08:49:16Z
Staff
2010-05-07T08:49:16Z
When Your Business Crosses State Lines
Staff
http://www.DrLaura.com/b/When-Your-Business-Crosses-State-Lines
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2010-05-07T08:49:16Z
2010-05-07T08:49:16Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>When Your Business Crosses State Lines
Cliff Ennico
www.creators.com
"We run a number of limited liability companies in New Jersey that provide financial services. We have a number of partners who live in New York, do business out of their homes, and see New York customers in their home offices. Just yesterday I read that New York is adopting a new law requiring LLCs in New York to publish a 'legal notice' in local newspapers or else lose their legal status. Does this apply to us?"
It depends on whether you are legally "doing business" in New York. Generally, unless you have an actual office address in New York, you are not doing business there legally. As long as your New York clients get all their mail from New Jersey, and mail all their payments to New Jersey, and your employees' home addresses do not appear anywhere on your business cards and stationery, you're probably not "doing business" in New York.
In this case, though, it's a close call, because it sounds like you've got employees working full-time in New York and using their home offices as local "branches" of your business - from a New York customer's perspective, you sure LOOK like you have an office in New York, even though you legally don't. New York and New Jersey have signed an "interstate compact" requiring companies in one state to collect the other state's sales, use and other taxes when dealing with customers in the other state, whether or not they are legally doing business there - you're probably not doing that. I also have to believe that New York's banking authorities will be concerned about the quality of financial advice your people are giving to citizens of New York, and may want to subject your New York personnel to whatever licensing requirements apply in New York.
To be safe, I would register your New Jersey LLC as a "foreign" LLC in New York and publish the legal notice - the cost is only about $200 if your employees work in counties outside of New York City. And hire an attorney who's familiar with New York consumer protection laws relating to financial services.
"I set up a business in Nevada thinking it's going to save me money on taxes, but doing more research showed that it's not true. Is there a way I can transfer it to my local state without having to pay all those set up fees? Or do I need to close business there and open a new one in my state?"
The short answer is "no". There are two ways you can transfer your Nevada business to your home state - you can either register the Nevada business as a "foreign" entity in your state (see previous answer), or you can set up a new entity in your home state and merge the Nevada business into it. Either way, though, you will have to pay fees ranging from $200 to $1,000.
The better solution may be to simply dissolve the Nevada business and set up a new one in your home state. In most states, the taxes and fees for setting up a local, or "domestic", legal entity are lower than they are for registering a foreign (out of state) entity, and you will save a couple of hundred bucks by doing this.
"How would plans to relocate in another state in the future affect my decision to incorporate an LLC in New York now? Would I pay business taxes to both New York and the state I will eventually end up in? Are taxes based on the legal address of the business or where the LLC is, or is it where you operate regardless of where your clients are?"
If you're planning to move to another state in the VERY near future (within the next year), then I would hold off forming an LLC until you are settled in your new location, and then form one under that state's law. Otherwise you will be paying taxes and filing tax returns in two separate states, which makes no sense. If your move to another state is sometime more distant in the future (say, the next two to five years), then you should form a New York LLC now to get the protection from legal liability. When you do eventually move, you would shut down your New York LLC (fairly easy to do) and set up a new LLC under the laws of your new state (see previous answer). That's the best and most efficient way.
"I am a non-US resident living in a foreign country. I am thinking about forming an LLC in Delaware. The Registered Agent allows me to use his address in Delaware for legal documents, bank accounts and correspondence with the IRS, but cannot be used as a mailing address to be posted on my company Web site. I found three mail forwarding services, one in Nevada, one in Texas and one in Florida. If I use these mail forwarding services for my LLC in these states, does it mean I am doing business as a foreign company in those states? For example, if I use the Florida mail forwarding service, do I need to register in Florida as a foreign company?"
The short answer is "yes". Your mail forwarding service would be a legal business address in the state where the mail forwarding service is located (see first answer). You would have to register your Delaware LLC as a "foreign" LLC in that state, and register for that state's state and local taxes. Be sure to get a good tax adviser here, as you (or your U.S. bank) may also have to "withhold" taxes on amounts you take out of the LLC checking account and remit to your home country - see the instructions to IRS Form W-8ECI and IRS Publication 519, "U.S. Taxation of Aliens". Also, be prepared to answer a few questions if someone from U.S. Homeland Security contacts you, as an overseas business with no legal presence in the U.S. other than a "private mailbox" might raise a few eyebrows in U.S. intelligence circles.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:49:16Z
A Mystery Partner, and Tony Manero's Boss
Staff
http://www.DrLaura.com/b/A-Mystery-Partner,-and-Tony-Maneros-Boss
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2010-05-07T08:49:13Z
2010-05-07T08:49:13Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>A Mystery Partner, and Tony Manero's Boss
Cliff Ennico
www.creators.com
"I recently made an offer to buy a small business in my town. The seller seems like a great guy, and has been very co-operative so far in opening his books to me. The seller has been traveling a lot lately, though, so when I visit the store I find myself dealing with a guy named 'Joe'. I had assumed that Joe was just an employee or manager of the store, but yesterday when I was chatting up one of the other store employees she referred to Joe as the seller's business partner. I checked the Secretary of State's office, and Joe is not listed as a member of the seller's limited liability company (LLC) that runs this business. Should I be concerned about this, and what is the most tactful way to bring it up with the seller?"
As readers of this column know, one of the biggest problems facing new businesses is the inadvertent or accidental partnership - a situation where two or more people are working so closely together that the law treats them as partners whether or not they intended one. Although Joe may not legally be the seller's business partner, there's a good chance Joe may have some real partner-type rights if the business is sold.
Whatever you do, make sure you buy the "assets" of the seller's business, not his ownership interest in the LLC - just because Joe is the seller's "accidental" partner doesn't mean he's going to become yours after the deal closes. Then, speak to both Joe and the seller (preferably not at the same time), and ask each of them what their business relationship is. If Joe says he's a partner, point this out to the seller and insist that both Joe and the seller sign non-compete agreements before you buy the business. Otherwise if Joe's not happy with the deal there's a good chance Joe will quit the day after you buy the business and open up a competing operation down the street.
"I run a small pack-and-ship store, and frequently have to hire college kids to pack the boxes and load the trucks because it's really hard in my area to find people willing to work for $20,000 a year without benefits. There's this one kid working for me who really gets under my skin. He's a good employee overall - he always shows up on time, he always dresses appropriately, he's polite and courteous, and the customers love him. The problem is that when he needs time off for something, he doesn't ask me - he TELLS me he's taking the afternoon off and just walks out of the store, leaving me in the lurch. I really like this kid, and I don't want to lose him - at least until he graduates -- but I also want to show him who's boss. How do I do that?"
Simple. Go to your local video store and rent a DVD of "Saturday Night Fever" - that's right, the 1977 movie about discos, John Travolta, the Bee Gees and white polyester suits. Readers of a certain age will recall that Travolta plays Tony Manero, a wisecracking Brooklyn kid who works in a paint store by day and dances his heart out at the local disco on Saturday nights (hence the movie's title).
What many readers - even disco buffs - probably don't remember is a scene in which Tony needs the afternoon off on a Saturday to help his girlfriend-slash-dance-partner move into a Manhattan apartment. Tony's boss, who's normally very supportive, refuses to give him the afternoon off on such short notice, explaining (quite rightly) that Saturday is the busiest day of the week and he needs every pair of hands he can get. Tony flies off in a rage and exchanges some extremely harsh words with his boss, who fires him on the spot.
Nothing unusual about that, except that the following Monday Tony goes into the store to pick up some personal items he left behind, and his boss offers him his old job back as if nothing had ever happened, saying "we both got a little hot about this. Let's just put it behind us, Tony, because you've got a real future here. The customers love you."
There's a lot of wisdom in that scene about dealing with employees, especially young people who are "wet behind the ears" when it comes to business skills. You need lots of patience, and have to be willing to forgive the occasional outburst of emotion, in order to do what's right for your business. It sounds to me like your employee sincerely cares about doing a good job, but hasn't learned the discipline of keeping regular hours. And you can't really blame him -- many colleges today have thrown fixed schedules out the window, and allow students attend classes when they want so they can engage in internship and other work-study programs. Some, like this kid, probably assume the "real" world of business will be just as flexible.
I would sit down with this kid and say something like "I'm happy to give you time off when you need it, without pay of course, but I'm setting a strict policy from now on that any employee who needs time off has to give at least 24 hours' notice so that I can make sure the store is properly staffed". Be sure to make it clear that this kid is not being singled out -- this is a policy that will apply to all employees, and he won't be penalized unless he fails to give the required notice. If he storms off in a huff, be prepared to "forgive and forget" if he shows up next week asking for his job back. If he doesn't come back, there's always another nice college kid who needs a part-time job.
As for Tony Manero, it's a good thing he turned down his boss' offer and went into dancing - he'd probably be wearing an orange apron at Home Depot today instead of that wonderful white polyester suit.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:49:13Z
Beware of "Wolves In Partner's Clothing
Staff
http://www.DrLaura.com/b/Beware-of-Wolves-In-Partners-Clothing
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2010-05-07T08:49:11Z
2010-05-07T08:49:11Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Beware of "Wolves In Partner's Clothing
Cliff Ennico
www.creators.com
"I have spent the last two years of my life building a specialty publishing business. I'm a pretty creative person, and have developed some ideas for a line of e-books on various types of hobbies. I've interested a number of large corporations in providing marketing support for these projects, and am in the process of negotiating some big-figure 'strategic alliances' with these companies.
Despite what I've accomplished so far, I feel the need to partner with someone who really understands the business of publishing to help me make this company the success it should be. For the past couple of months, I've been in discussions with an ex-publishing executive. He seems to be a lovely person, and he really knows his stuff. I've invited him to a couple of 'pitch meetings' with some big companies to discuss sponsor deals. I've paid his expenses, and he reviews and critiques the PowerPoint presentations I prepare before each meeting. His suggestions are very helpful, and I usually end up following his advice. But during the actual sessions he doesn't contribute much. When I ask him to contribute more to the effort, he says he will do more as soon as we 'work out a suitable arrangement' for him to come on board.
Last week he finally sent me a written offer to join my management team. He says he can't put any money into my company right now, but is willing to provide 'sweat equity' as the Chief Operating Officer and Chief Financial Officer of my company, with 50% of the stock in my company, a seat on my board of directors, and the right to purchase my 50% of the company he is not happy with my performance in running the company. To be fair, I would also have the right to buy out his 50% stake if I am not happy with him down the road. Also, he insists his attorney, who is also his brother-in-law, draft the documents to make this deal happen. I'm not wild about this, of course, but I am worried that I need somebody like them on board to attract the type of investors and partners I will need to make this business a success. What should I do?"
First of all, I agree with your conclusion that as the "creative genius" of this company you need to balance your management team with some "business types" who can communicate well with the corporate "suits" who will be making the big sponsorship decisions. That shows real maturity on your part, as investors - particularly venture capital types - will look at your management team very closely to make sure you've got someone who "worships the numbers" on board before they will part with their money. Also, investors are very reluctant to put money behind "one man bands", because if something bad should happen to that one man, the music stops playing. You will definitely need to bring on one or more partners to make this business realize its full potential.
The gentleman you describe in your e-mail is not, however, the right person, and you should not make him your business partner on the terms he has recommended. Make no mistake: this guy is out to steal your company.
People like this gentleman are a bit like Wimpy in the old "Popeye" cartoons - they will "gladly pay you Tuesday for the price of a hamburger today." That is, they promise you everything, but they won't agree to do anything until you give them a significant chunk of your business up front. Right now, this person has given you only a few hours of his time that he can easily write off. He is refusing to put money into your company, and you have reimbursed his expenses so far, so he has no "skin in the game" - he has taken no risks, he has nothing to lose, and he hasn't really shown any real commitment to your business.
What recourse will you have if you bring him on as your 50% partner and he doesn't deliver what he promises? Once you make someone your partner, there is only one way you can get rid of him - you must buy him out at whatever price he considers fair. Once this company takes off and becomes successful, that will be a significant chunk of change. I especially don't like his asking for the right to boot you out if he's not happy with your performance - you could end up working like a dog building this business only to have him pull the trigger and force you out in the cold for a pittance just as you're becoming successful. And with his brother-in-law drafting the documents, you just KNOW the terms will not be favorable to you.
If you really feel this person is worth serious consideration as a partner, here's my advice: don't make him your partner until he proves himself. Offer him a "finder's fee", where he gives you his time and gets a percentage (5% to 10% is customary) of any cash you receive from any sponsorship, strategic alliance, or other deal he helps to make happen for your company. That keeps you in control of the business, compensates him generously for his time, and gives him a stake in your success. It also gives you a chance to look at him very closely and determine if he's worth "bringing on board" as a partner down the road.
If he freaks out at this offer, and accuses you of acting in "bad faith", don't let it get to you - he has shown you his true colors, and you don't want him in your life under any circumstances. Tell him (professionally) to enjoy the rest of his life, and start looking for other candidates. As your Mom told you back when you had your heart broken in high school, there's plenty of fish in the sea.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:49:11Z
Fast & Fun Ways To Raise Money To Start Your Home Business
Staff
http://www.DrLaura.com/b/Fast--Fun-Ways-To-Raise-Money-To-Start-Your-Home-Business
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2010-05-07T08:49:09Z
2010-05-07T08:49:09Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Fast Fun Ways To Raise Money To Start Your Home Business
By Liz Folger, Home Biz Start-Up Expert
It might seem begging, borrowing and stealing are the options you have tofunding your home business. However I suggest you not go through route.
At first begging might seem like a good idea. The more pathetic you soundthe better your chances of getting what your want, right? It works for threeyear olds usually, why not a 43 year old? It usually doesn't work for the threeyear old and it certainly isn't going to work at all for the 43 year old.
Borrowing...yes but if your credit isn't as beautiful as you would like it tobe, most banks will look at your loan application and all of a sudden you'llthink you're a comic. Because whatever you wrote on that loan application hascaused this individual reading it to get the best belly life of their life.
Stealing just isn't something that is looked on too favorably in most if notall countries of the world. Depending on where you live you could have fingersand limbs cut off, you could be killed or you could spend some time in a verysmall cell giving you a lot of time to think that stealing probably wasn't thebest idea you've ever had.
There has GOT to be a better way to raising money to start your homebusiness and me being the good news fairy that I am I'd like to tell you - you're right!Not only is there better ways to raise money, but there are fun ways to do it too andit doesn't have to take you all that long to raise the money you need.
CUT THE EXTRAS
To start most home businesses, it doesn't cost a lot of money. Many homebusinesses can be started for under $500.00 and some can be started for much less.
One idea is to look at your current spending habits. Cable, phone/cellbills, going out to eat, daily coffee at the coffee shop. Let's take that last example of buying a daily coffee. Most specialty coffees you're paying on average of about $3.00 a cup. If you were to pass on that coffee five days a week for a month you will have saved $80. Do that for a few months and you could be very close to raising the money you need.
What about your cable bill? Average cable bills are $50 to $75 a month. Whatif you were to cut out the cable? Not only would you be saving money and reachingthe goal to finance your home biz, but think of all the time you can put into yourhome business idea? It's amazing the time we waste sitting in front of that little box.
MAKE THE MONEY
Maybe you don't like the idea of cutting anything out, or maybe you want tocombine the above and raise the money yourself to put yourself on the fast track togetting your business started.
The goal is to raise your money in just one to three months. The sooner thebetter. It's amazing what you can do for a few months if you want something badenough.
Think about something you already know a lot about.
Gardening
Art
Music
Health/Fitness
Cooking
Finance
These are just a few ideas. Think about what you like to do and have a lotof knowledge in. Remember, just because you know a lot about this area, others will notand they would love to pay you for your knowledge.
Think about teaching a 4 week workshop on your area of expertise. Offer aHealth/Fitness program. It could be geared towards women who want to be ready to wear that itsy bitsy teeny weenie yellow polka dot bikini for the summer. Create for them a work-out plan along with a healthy diet. You could meet with them as a group or individually in their home and help motivate them to reach their goals.
If you're thumb can be described as the color of deep forest green you couldthink about putting in gardens and maintaining them through the summer for thosepeople who will enjoy the fruits and vegetables of YOUR labor.
Kids are always raising money with car washing, why can't adults? Thinkabout offering a mobile spring cleaning car service. If cleaning is your thing you coulduse that same theme and offer to spring clean or organize peoples home, kitchens orclosets.
If it's around the holidays there are lights to be hung on houses (And takendown), there are homes and businesses to be decorated, parties to plan and money to bemade.
Everyone is born with special gifts, talents and interests. Use them to makethe money you need to get your home business off the ground.
TELL EVERYONE WHAT YOU'RE UP TO
People naturally like to help each other. At least most people I don'trecommend asking any ex's. What your about to do is not begging either. You will betalking to your friends and family in a non-whinnying, very confident manner.
Explain to them what your goal is and how you plan to reach your goal. Askthem if they would like to help you reach your goal and this is what you can do tohelp them. It's a win win situation for everyone.
Whether your friends or family decide to help you reach your goal, ask themfor referrals. This way you don't EVER have to make a cold call. You can contact thesepeople, tell them so and so said to give them a call because they might be interested in theproduct or service you're offering. Again, give them your pre-practiced spiel.
HAVE FUN
Be sure you pick a way to make money that you naturally enjoy doing.
Once you reach the goal you've set for yourself you will have such a renewed sense ofconfidence for yourself. To create for yourself a goal, and reach, is such a wonderful way to give a personal power boost of good feelings.
If you would like a free worksheet that gives you additional help infinancing your home business visit:
www.bizymoms.com/money.html
Liz Folger is the founder of
www.bizymoms.com
. Bizymoms.com is the leading online resource for work-from-home ideas. The site offers home-based business start-up kits, online classes, e-books, chats and enthusiastic support for moms who want to have it all - a family and a career. Visit
www.bizymoms.com
for more information.
* The author gives permission for the use of this article on DrLaura.com.
Staff
2010-05-07T08:49:09Z
Breaking Into The "Big Boxes"
Staff
http://www.DrLaura.com/b/Breaking-Into-The-Big-Boxes
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2010-05-07T08:49:06Z
2010-05-07T08:49:06Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Breaking Into The "Big Boxes"
Cliff Ennico
www.creators.com
"I'm in the process of launching a specialty food product. I've lined up a contract manufacturer to make the first batch of 5,000. What's the best way for a small business like mine to get into the big retail chains?"
No doubt about it, "big box" retail chains such as Targetreg; and WalMartreg; are taking over retail distribution channels for most consumer products. People want the convenience of "one stop" shopping, and they love the discounted prices. But it's tough for small businesses to break into the supply chain when retail is dominated by only a handful of players.
First, you have to find the right buyer for your product among the retailer's hundreds of employees. Then, you have to get on the buyer's "radar screen" to review your product. Then, you have to make the pilgrimage to the retailer's corporate headquarters (Bentonville, Arkansas, in the case of WalMart(r)). As a small supplier, you will have to be prepared to grovel, beg and plead to get your product considered, and your pitch will have to be perfect.
But here's the kicker. Let's say you do all that, the buyer is absolutely wild about your product, and (surprise!) the buyer actually has the authority to buy your product right then and there without "going up the corporate chain" for further approvals. Here's what she's going to say to you when you're done pitching: "You've really got something here; we're definitely interested. We'll place an initial order of 100,000 units, we need delivery next week, we're going to mark it up 300% and pay you $1 per unit (or less) over your cost, and we want you to take back all unsold inventory if it hasn't sold out in three months."
Okay, hotshot, NOW what are you going to do? Is that a sufficient price to pay to get nationwide recognition for your product?
A manufacturing run of 5,000 units is simply going to be too small for a large nationwide retail chain. My advice would be to launch the product on a smaller scale, using local retailers, specialty mail-order retailers and online retailers to start with. That way, you can charge a higher price for your product, get valuable market feedback, and recoup at least some of your investment before you gear up for the "mass production" a national chain is going to require.
Talk to some of the high-end gourmet grocery stores in your area and get them to carry the product. Not only will the stores generate sales for you, but remember, they're being visited every day by representatives from the larger specialty food distributors. If a "rep" sees your product in a local store and likes what she sees, she probably will want to "rep" your product as well (for a fee, of course).
These days to sell any kind of consumer product you have to generate "buzz" among the "early adopter" buyers who always want to be "the first on the block" with the latest new thing. Look for specialty retailers that target these "early adopters". For example, since you have a specialty food product, you simply must do everything you can to get it into Zabar's supermarket chain in New York City (
www.zabars.com
). The people who write articles for the important trade publications in the specialty food industry are always looking to see "what's new at Zabar's", and if they see your product there . . .
Don't overlook online retailers. These days if someone has a specialized or "niche" interest the first thing they do is "Google" the Web, and a number of clever Internet entrepreneurs are creating "information clearinghouse" Websites for people with a common interest. Thinking about a line of baked goods for people with food allergies? You couldn't ask for more than a mention on AllergyGrocery.com (
www.allergygrocery.com
).
Specialty mail order and online retailers are less likely to order large quantities, and are more likely to negotiate generous price and return conditions, than the big nationwide chains. Some will even "drop ship" your products - they will list them in their catalogues or online, and will order from you only when they receive an order from a customer, so you can maintain control of your inventory.
So how you do find specialty retailers? The online "Chain Store Guide" (
www.csgis.com
) publishes several high-priced directories of specialty retailers (expect to pay $200 and up for access to these). Sadly, the classic publication "The Catalog of Catalogs" has been out of print since 1999, but you can find an out-of-date copy at most libraries and it's still pretty good.
You can also find specialty distributors through your industry trade association. The National Association for the Specialty Food Trade (
www.specialtyfoodmarket.com
) offers several publications and resources for its members that are not available to the general public. If nothing else, by finding out where other members are looking to source their products, you will know where you need to be to generate the "buzz" necessary to get this product off the ground.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:49:06Z
Deducting Your "Peanuts" And "Bubbles"
Staff
http://www.DrLaura.com/b/Deducting-Your-Peanuts-And-Bubbles
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2010-05-07T08:49:03Z
2010-05-07T08:49:03Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Deducting Your "Peanuts" And "Bubbles"
Cliff Ennico
www.creators.com
"I just began selling stuff on eBay last year, and am in the process of filling out my first tax return (ugh). I have a question about whether or not I can deduct the cost of postage, duct tape, packaging materials such as 'plastic peanuts' and Bubblewrap, and other supplies. I pay for these items out of my own pocket, but I don't pass the actual cost on to the buyer because they're too difficult to track. Instead, I charge each buyer a 'shipping and handling fee' of $10 for each auction, regardless of the amount involved. Does the $10 'shipping and handling fee' wipe out any deduction I might have for my packaging and shipping materials?"
When selling on eBay, it's often hard to come up with deductible business expenses when tax time rolls around. You probably have a computer or laptop that you use in your business (and which you probably share with your videogame-playing teenagers), a couple of eBay "how to" books, and maybe some paper clips. But that's about it. Unless you are selling so much on eBay that you need to rent a warehouse, buy forklifts and hire guys with tattoos to run them, you really don't have a lot of expenses in a selling business on eBay.
The one exception, of course, is "postage, packing and shipping". Whenever someone buys something from you on eBay, you've got to get it into their hands somehow. How should you deal with these on your tax return?
Well, believe it or not, there are two ways.
The first (and better) method - and what the IRS really wants you to do - is to "inventory" your postage, packing and shipping costs by adding them to your "cost of goods sold" or "COGS".
"Cost of goods sold" (COGS for short) is basically the total of everything you spent to acquire your inventory -- the stuff you sell on eBay. Whatever you paid for your inventory is part of the COGS of your inventory, but COGS also includes such things as postage and packaging materials. The COGS method requires you to keep track of the COGS of each item of inventory you sell on eBay, because you cannot deduct your COGS for inventory until it is actually sold. When you sell an item on eBay, you record the winning bid amount as income, and deduct the COGS for that item to offset the income.
The COGS method works well when you are selling only a relatively few high-priced items on eBay. But what if you are like the vast majority of eBay sellers, who are selling lots and lots of low-priced items? In that situation it is difficult, if not impossible, to track the COGS of each item you sell unless you have lots of discipline and patience, too much time on your hands, and some sophisticated accounting software.
You probably will not get into too much hot water with the IRS if you take the total cost of your postage, packaging and shipping materials as a current deduction on Schedule C of your federal tax return (that's the Schedule on which you report your income and deductions from a "trade or business"), especially if the total amount of these expenses is relatively small such that it would be "too much of a pain" to track them precisely.
What complicates the situation here is the "shipping and handling fee" you charge your eBay buyers. You will have to keep close track of the amount you actually spend on postage, packaging and shipping materials, total them all at the end of the year, and then compare them to the total "shipping and handling fees" your charged your eBay buyers during the year. If your total shipping and handling expenses exceeded the total shipping and handling fees you received from eBay buyers, you can deduct the excess expenses on your tax return. If the total shipping and handling fees you charged your eBay buyers exceeded your actual shipping and handling costs, you must report the excess as income on your tax return.
Keep in mind that charging a flat shipping and handling fee regardless of your actual costs, while legal, may violate certain eBay policies (see pages.ebay.com/help/policies/listing-shipping.html). If your eBay buyers find out you are making money on your shipping and handling fees, they will feel cheated, and will find a way to let the eBay community know about it, either by giving you "negative feedback" on eBay's Feedback Forum, or by "flaming" you on the many chat rooms, bulletin boards and other "community" features on eBay's Website.
If you value your reputation as an eBay seller, you will find a way to make sure your shipping and handling fees reflect your actual postage, shipping and packaging costs. And while you're at it, start using the COGS method, which will help you keep track of what these actual costs are. You will make both your customers, and the IRS, very happy indeed.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:49:03Z
Make Money With Your Knowledge And Skills - Start Your Own Tutoring Business
Staff
http://www.DrLaura.com/b/Make-Money-With-Your-Knowledge-And-Skills---Start-Your-Own-Tutoring-Business
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2010-05-07T08:49:02Z
2010-05-07T08:49:02Z
Staff
2010-05-07T08:49:02Z
<!--01-->Choosing The Right Way To Account For Sales
Staff
http://www.DrLaura.com/b/!--01--Choosing-The-Right-Way-To-Account-For-Sales
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2010-05-07T08:48:59Z
2010-05-07T08:48:59Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Choosing The Right Way To Account For Sales
Cliff Ennico
www.creators.com
"Last year I started a business selling on eBay. I'm doing my taxes now, and my accountant is telling me I have to choose between the 'cash' and 'accrual' methods of accounting. Frankly, I haven't been doing any accounting as such. When people pay me, I just deposit their checks or money orders into my business checking account (I'm not using PayPalReg; yet, though I plan to next year). Could you please explain the difference between these two accounting methods in language I can understand?"
As Curly Joe Howard of the Three Stooges used to say, "soitenly."
The IRS allows small businesses to use two different accounting methods - the cash method and the accrual method.
Under the cash method of accounting, you report sales when, and only when, you actually receive the "cash" from your winning bidder. So, if someone buys something from you on eBay and pays with a check money order, you do not report the sale until the check or money order has arrived. If you hold onto the check for a few days before depositing it in your account (as many folks do, especially in late December when they're trying to 'push' income into the next tax year), it doesn't matter - you record the sale when the buyer's check hits your mailbox.
EXAMPLE: Joe sells laptop computers on eBay. Joe puts a laptop computer up for sale on eBay using a 7-day "traditional" auction format, closing on Sunday night. At the end of the auction Mary is the winning bidder at $500. Mary elects to pay by personal check, and mails the money order to Joe on Monday morning. Joe receives Mary's check on Thursday, deposits it in his business checking account on Friday, and the check clears the same day. Using the cash method of accounting, Joe records the $500 sale on Thursday, when he receives the check from Mary.
Under the accrual method of accounting, you report sales when you have the legal right to payment, even if you haven't received the cash yet. So, if someone buys something from you on eBay and pays with a check or money order, you can report the sale as having occurred the moment the auction ended, even though it will be a few days yet before you receive the buyer's check or money order.
EXAMPLE: Mary sells Barbie Dolls on eBay. On Monday, Mary puts a genuine 1971 "Malibu Barbie" (the one with the sunglasses sewn to her head) up for sale on eBay for a fixed price of $1,000 using eBay's "Buy It Now!" feature. On Wednesday, Alphonse clicks the "Buy It Now!" button and buys the Malibu Barbie doll for $1,000. Alphonse chooses to pay for the doll by personal check, and mails the check to Mary on Thursday morning. Mary receives the check on Monday and waits until Tuesday to deposit the check to her business checking account, which means the check doesn't clear the bank until the following Friday. Because Mary uses the accrual method of accounting, Mary must record the $1,000 sale on Wednesday - the day Alphonse buys the doll on eBay and becomes legally obligated to purchase the doll - even though Mary doesn't actually receive "good funds" until the following Friday, when Alphonse's personal check clears her bank.
Under either the cash or accrual method of accounting, holding onto a check or money order for several days before depositing it does not affect in any way the recording of the sale. You record the sale either when the check or money order arrives in your mailbox (cash method), or when the eBay auction closes and the winning bidder has been identified (accrual method). If you have a PayPalreg; account and use the cash method of accounting, you record a sale when the buyer's payment hits your PayPalreg; account.
Still not sure what to do? When in doubt, select the "accrual" method of accounting. Just about all eBay selling businesses have inventory, and the accrual method of accounting gives a more accurate picture of sales and income for a business that has inventory. Besides, when you find yourself selling more than $1 million worth of stuff on eBay each year (you should be so lucky, right?), the IRS is going to require you to use the accrual method of accounting anyway, so you might as well get familiar with accrual accounting now. Hey, you never know . . .
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:48:59Z
<!--02-->10 Marketing Ideas to Grow Your Candy Wrapping Business - Part II
Staff
http://www.DrLaura.com/b/!--02--10-Marketing-Ideas-to-Grow-Your-Candy-Wrapping-Business---Part-II
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2010-05-07T08:48:57Z
2010-05-07T08:48:57Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>10 Marketing Ideas to Grow Your Candy Wrapping Business - Part II
By Liz Folger, Work-at-home Mom Expert
The business of candy wrapping (and it's far more than just wrapping chocolate bars) is getting more and more popular. Personalized gifts and favors are always well received. Once your personalized gifts are seen at a wedding or being sold at a fundraiser, you're going to start to get calls from other people and companies who will want to put in their order.
Your candy/favor wrapping business just needs a little marketing so your business can get moving.
Below you'll find 10 ways to market your candy wrapping business. Use one, five, or all the ideas that you need. One thing I do recommend is that you have a fun and use the marketing ideas that you enjoy the most. Because the more marketing ideas that sound like fun to you, the more you'll work at it and the more business you will find.
Business Cards
With any business you have it's key to have some type of business card. Making your business card unique is also a great way to get a future customer's attention. With a Candy wrapping business you can do this very easily. Take a small chocolate bar or a Lifesaver roll and print your business card on a wrapper to fit the candy. This is sure to make a tasty impression.
Get Your Yummy Business Cards Into The Right Hands
Now that you have your cards created, think about who you'd like to market your business to. You could start with event and wedding planners and specialty gift shop owners.
Wedding Trade Shows
Throughout the year there are several wedding trade shows. Think about booking a table at one of these shows to display your wedding favor ideas.
Fundraising Organizations
Your children's school might be the perfect place to start. What's great about this business is you can create some wonderful samples to show your potential client. Other groups might be daycares, sporting teams, and hospitals.
Local Shops
Is there something special about your town? Do you get a lot of tourists? What attracts them? Create a special wrapper for your particular area. For more options offer seasonal themes like Halloween, Christmas, Easter and the Fourth of July.
Press Releases
Get the word out on your business by writing a press release for your local newspapers and local TV news stations. To help them remember you even more, create a special candy bar with the reporters name on it.
Online Marketing Ideas
Website
Have a website so your customers can check out your work 7 days a week 24 hours a day. Include that website URL on all your marketing materials like your business cards.
eNewsletter
Get the email address of all your customers. This way you can send them a monthly or quarterly enewsletter that tells them about your specials and new products or ideas that you have. Include some freebie ideas like new party trends and ideas. Make the enewsletter something your customers are going to want to receive.
Network
Network with those who have similar businesses. With the Internet you can do business with a wedding planner in another state. You no longer have to do business just with the people who are in your local town. This is especially good news for those who live in very small towns.
Post On Message Boards and Mailing Lists.
Find wedding and fundraising idea sites. The key here is not to promote your business blatantly. Just answer questions, be helpful, and then include a nice signature line that includes your name, name of business, URL and email address.
Liz Folger is the founder of
http://www.bizymoms.com
. Bizymoms.com is the leading online resource for work-from-home ideas. The site offers home-based business start-up kits, online classes, e-books, chats and enthusiastic support for moms who want to have it all - a family and a career. Visit
http://www.bizymoms.com
for more information.
* The author gives permission for the use of this article on drlaura.com
Staff
2010-05-07T08:48:57Z
How To Start A Candy Wrapping Business - Part I
Staff
http://www.DrLaura.com/b/How-To-Start-A-Candy-Wrapping-Business----Part-I
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2010-05-07T08:48:55Z
2010-05-07T08:48:55Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>How To Start A Candy Wrapping Business - Part I
By Liz Folger, work-at-home mom expert
What woman doesn't love chocolate? Combine that with all the emails I get from moms who want to find a business where they are able to make money with their home computer and boy, have I got an idea for you! Chocolate + your computer = your new home business!
If you haven't heard about the business of candy wrapping then let me give you a quick explanation. This is where you take a candy bar and you design and print your own wrapper to put over the candy bar's original wrapper. Now you might be wondering why would someone want to do this? Well these favors make wonderful birthday and wedding favors. They are great for special events and get-togethers like family reunions and retirement parties, and can be used in fundraising events.
And it isn't just chocolate bars that candy wrappers are finding to wrap. They're also wrapping lifesavers, gum, tic tacs, mint, and even popcorn bags. Some wrappers are even wrapping non-food items like bubbles and matchbooks.
More Ideas Of People and Groups Who Might Want Your Service:
Bridal shops
Wedding planners
Event planners
Baby shops
Obstetrician offices
Florists
Gift shops
Specialty toy stores
Trade shows
Professional fundraising groups (try the school your kids go to)
Skills Needed:
The skills you will need for this business might be something you already posses. But it helps to be creative and have some knowledge of graphics software. However, there are lots of programs and free ready-made wrappers available on the Internet. Customer service skills are important too. You'll need to market your business and there are so many great ways to get your business name out there. A chocolate bar with your business card wrapped around it would be a great way to get people's attention.
Supplies:
Equipment that you might already have is a computer, color printer, some type of graphics software, paper for your wrappers, and in some cases you might need candy bars (sometimes clients will provide the candy bars and you just need to sell them the wrappers). When just starting out, scissors work great for cutting your wrappers, but as your business grows you'll want to look into a nice paper cutter. You'll also need something to stick your wrappers together. Glue sticks or tape works great. Make sure whatever you choose is acid free and photo safe.
Once you're business gets rolling a little more, you might want to invest in a scanner and/or Digital camera if you don't already have one. These are useful if you want to add personal photos to your wrapper designs.
When looking for paper, candy bars, ink etc. Try to buy in bulk. You'll usually get a better deal and be able to keep more of your profits if you shop wisely.
Liz Folger is the founder of
http://www.bizymoms.com
. Bizymoms.com is the leading online resource for work-from-home ideas. The site offers home-based business start-up kits, online classes, e-books, chats and enthusiastic support for moms who want to have it all - a family and a career. Visit
http://www.bizymoms.com
for more information.
* The author gives permission for the use of this article on drlaura.com
Staff
2010-05-07T08:48:55Z
Reviving The "Living Dead" Corporation
Staff
http://www.DrLaura.com/b/Reviving-The-Living-Dead-Corporation
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2010-05-07T08:48:53Z
2010-05-07T08:48:53Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Reviving The "Living Dead" Corporation
Cliff Ennico
www.creators.com
"In the late 1990s, I invented a product for the health care industry. I obtained patents for the product, and registered trademarks for the product name. I even formed a corporation in Delaware and registered it in Texas, where my husband and I were living at that time. Then, my husband (also an entrepreneur) moved his business to New York to be closer to his customers, and I moved with him. I had to help him with his business for a while, as well as raise two kids, so I put my dreams on hold for a while. The patents and trademarks expired because I did not renew them, and the Delaware corporation was 'voided' because I didn't pay the annual franchise tax in Delaware for a couple of years. Now my kids are off to private school, and I really want to revive this product and the company. I have some potential investors who are really excited about the product, but they want to deal with a 'real' company. Can I revive the company that I had in the 1990s, or should I start all over again from scratch?"
We all have our priorities in life, and it sounds like you made the right choices, although I would love to know more about this product. Anyway, here goes.
Your first step should be to talk to a good "intellectual property" attorney who specializes in patents and trademarks. When you invented your product back in the 1990s, it was probably "state of the art" at the time, but I'll bet you the technology for this product has advanced leaps and bounds since then. Generally, if you had a patent for this product and it expired because you didn't renew it in time, you should be able to "revive" the patent (by refiling it from scratch) unless someone else has come along and claimed a patent for improved technology. Similarly, unless someone has come along and claimed the same trademark for a similar product or service, you should be able to file an application for the trademarks you want to use to identify this product in the marketplace.
When talking to the patent attorney, there are two questions you have to ask:
whether you can "revive" your patents and trademarks that have lain dormant for several years; and
if you can, whether the patents and trademarks will be "strong" ones that will withstand challenge from new players who will claim that their designs are superior to yours because they are "state of the art".
The second question is actually the more important of the two. Even if you can revive your patents and trademarks from the 1990s, they won't be worth much if a bad person (say, in China or another Asian country where patent protection isn't that strong) can "tweak" your design (say, by adding a screw here or rounding off a corner there) and claim their product is a significant improvement from yours. "Knockoffs" are a fact of life these days, and if the "state of the art" technology of your product hasn't advanced much since the 1990s, there's a good chance that an imitator or "knockoff artist" will be able to design around your patent without too much effort. If your patent attorney can't give you solid comfort on this issue, do not proceed further.
If your "intellectual property" attorney tells you your patents and trademarks (1) are still strong, and (2) can easily be revived, spend the money on that first. When your patents and trademarks have been secured, it's time now to revive your Delaware corporation.
A Delaware corporation that has been "voided" because it hasn't paid Delaware's annual franchise tax is a bit like the "living dead" in a bad horror movie: it still has a pulse, and appears on Delaware's corporate records, but anyone who comes along and wants to use the same corporate name will be able to get it as if the "voided" corporation did not exist. To "revive" the corporation (assuming someone else hasn't grabbed the name), you have to call the Franchise Tax Unit of the Delaware Secretary of State's office (telephone 302-739-3073), and find out how much you owe in unpaid Delaware franchise taxes. Once they tell you the amount, you must:
file a Certificate of Renewal with the Delaware Secretary of State's office (your attorney will prepare this for you for a fee of one hour's time, plus a filing fee of $104);
pay the unpaid Delaware franchise taxes; and
contact the company that acted as your "registered agent" in Delaware and tell them you have revived the company - the "registered agent" will probably want an annual fee of $200 to $300 to continue acting as your "registered agent" in Delaware.
Since you no longer live in Texas, there is probably no reason for you to "revive" your Delaware corporation's presence there. Once you revive your "living dead" Delaware corporation, though, you will have to register it as a "foreign" corporation in New York, where you now live and do business. Your attorney can prepare and file the necessary paperwork for a fee equal to one hour of his or her time plus filing fees that are usually in the $200 to $300 range.
Since forming a new corporation in New York (or Delaware) to manufacture and market this product will probably cost you between $1,500 and $2,500, it probably makes economic sense to revive your Delaware corporation and register it in New York. That way your corporation will have an "unbroken" legal existence from the late 1990s to today. Just make sure you pay the annual taxes and fees in Delaware and New York to keep this corporation alive after you have "risen it from the dead". Just like in a bad horror movie, the more frequently a "zombie" dies, the harder it is for it to get back on its feet again.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:48:53Z
First Get The Customers, Then Set Up The Business
Staff
http://www.DrLaura.com/b/First-Get-The-Customers,-Then-Set-Up-The-Business
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2010-05-07T08:48:50Z
2010-05-07T08:48:50Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>First Get The Customers, Then Set Up The Business
Cliff Ennico
www.creators.com
"For the past several years, I've been working for our state university. They have a toll-free 'hot line' where people can call with questions about their trees and shrubs, and I'm the person who gives the answers. We get tons of questions every day, and I'm thinking there's a business opportunity for someone to go out there and provide one-on-one consulting. I am worried, though, about how best to protect myself against lawsuits - is it better to take out liability insurance, or form a corporation or limited liability company (LLC) to run the business? Doing both seems a little like wearing both suspenders and a belt - you don't need both."
Sounds like you're having trouble seeing the forest for the trees (sorry, I couldn't resist that). The first thing you need to do is find out if there's really a business here. Just because people are calling a toll-free line and getting free advice over the phone does not mean they will actually shell out their hard-earned cash for the same advice, no matter how good it may be. Before spending any money on setting up an LLC or taking out insurance, I would throw together a quick-and-dirty marketing brochure, get it out there, and see if homeowners really will bite. If they don't, then you won't have to spend any MORE money to shut down the LLC, close out the insurance policy, etc., etc.
If the customers really are there, the next question you need to ask is: how much will I get paid for this? You are going to be spending considerable time visiting each customer, looking at their landscape layout, putting together a proposal, and so forth, and the hours are going to rack up quickly. I'm not sure most homeowners are willing to spend $100 or more an hour for advice on their shrubs - realistically, you are probably going to be charging something in the $20 to $30 range for an hourly fee. If it takes you 10 hours to advise a client, and you charge $200 for your services, that's only $20 an hour. Not bad, but you are going to need to have tons of customers at that rate before you earn a six-figure income from this business and quit your day job.
Only when you know the customers will be there, and the economics make sense, do you start putting things like LLCs and insurance policies in place. How much protection you need, of course, depends on the real likelihood of your getting sued. If you are giving advice on chemical treatments, for example, you will need not only a belt and suspenders for this business, but a suit of armor as well - one sick kid (or pet), and you're toast.
Even if you form a corporation or LLC for your business, I usually suggest that people carry liability insurance for the LLC's (and their own) "errors and omissions". If someone is injured because of your bad advice, and a nasty judge sympathizes with them and sees you have only $100 in the LLC checking account, he or she will be sorely tempted to "pierce the LLC veil" and give the plaintiff access to your personal assets. Having an insurance policy for the plaintiff to go after will make it easier for the judge to respect the limited liability your LLC offers.
One more thing: make sure you check with the university and make sure you haven't signed anything that would prohibit you from doing consulting work on the side. I take it you are not quite ready to quit your day job at the university yet. Even if you haven't signed a formal noncompete agreement, I would run this by your immediate supervisor before taking any action. University people sometimes get prickly about their employees doing outside consulting work for real money (jealousy probably has something to do with that), and you're usually better off disclosing your plans up front than having them "catch" you doing it behind their backs.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:48:50Z
Something All My Own
Staff
http://www.DrLaura.com/b/Something-All-My-Own
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2010-05-07T08:48:48Z
2010-05-07T08:48:48Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Something All My Own
Owning my own business has taught me many things about myself. I've learned that I can make wise business decisions, I can manage the accounts and taxes for my company, and I can type with one hand while holding a sleeping 6 month old. All of these things have helped me develop into a much more confidant person. My business has also given me the freedom to test my limits and see what I can accomplish.
Running a home-based business has become a large part of my identity. Not in a selfish, "See what I can do!" way, but in a positive sense. It has given me the confidence to know that I accomplish things that I never thought possible. Before I was a work-at-home mom, I wanted to be able to be at home with my children, but I also felt that I needed more. I needed something for me alone that would make me feel strong and confident. I also needed the opportunity to keep in touch with others to avoid the isolation that often accompanies stay-at-home moms.
There are three keys areas in my life that I believe my home-based business has helped me develop:
Passion
When I began my website it truly was something for ME. I wanted to compile work at home information all in one spot so that I could find the perfect opportunity that would allow me to stay at home with my children. However, in running CWAHM I have found that I have a passion for helping other moms work from home.
My business has taught me that to succeed you must give to others and expect nothing in return. This may not seem like a sensible business technique, but it is a biblical principle. Put others before yourself, help others to succeed and you will be successful yourself.
Gina Neef with The MOM Team, told me recently, "I didn't realize I even wanted "something of my own" three years ago. When I began - it all unfolded... so nice to have my passion fueled."
Confidence
In college I was shy and very unsure of myself. I felt like there was not any one thing that I was truly good at. My grades were average, my athletic ability was average, and on and on. Being a successful business owner has opened my eyes to the fact that there are things that I am good at.
Melody Spier, owner of
Ballyhoo Virtual Services
, felt similarly. She states, "Owning a business has taught me so much about myself and my capabilities. I used to let fear of the unknown, fear of success and of failure hold me back, but now that I'm a business owner, I've learned that it's okay to succeed at some things and fail at others. I take each experience and learn from it - what worked, what didn't? Today if I want to do something but don't know how, I find someone who has knowledge of the topic and I ask for help. Owning a business has taught me to believe in my skills and myself. My fear of success has long since vanished as well; I can now say that I'm proud to own a successful virtual assistant business."
Courage
Being a business owner has given me courage. Courage to take chances and go beyond my comfort level. Once I have a few successes behind me, I realized that I could do it all. Also, even my failures make me stronger. I found that my business didn't shut down with each mistake I made and I always found a better way of doing things. Diana Ennen, president of
Virtual Word Publishing
, agrees. She states, "Owning my own business has inspired me to do more in all aspects of my life. I love the warmth of success so I try and take the right steps to achieve it. Just as I want the best for my family, I also want the best for my business as well. I'll often find the courage to go the extra mile and reach far beyond what I think is possible and what I find is that most of the time, I reach those goals."
Having "something all my own" has benefited me in many ways - passion, confidence, courage - and so much more. I've been inspired to do things that I never thought possible. If you desire to work from home you'll find that it's worth the time and effort that it takes to get started. Take the chance, step out on faith and work until you succeed.
ABOUT THE AUTHOR:Jill Hart is the author of the e-book, 2 Weeks Devotional Journey for Christian Work at Home Moms, and the founder and editor of Christian Work at Home Moms, CWAHM.com. This site is dedicated to providing work at home moms with opportunities to promote their businesses while at the same time providing them spiritual encouragement and articles. Jill's work has been published across the internet, including DrLaura.com. She also has work published in the Xulon Press book,
I'll Be Home For Christmas
. Visit
http://www.CWAHM.com
for additional information.
This article is free to reprint if the Author's Bio remains in tact. For additional articles, please contact Jill Hart. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:48:48Z
Marketing Offline Can Substantially Increase Your Online Business
Staff
http://www.DrLaura.com/b/Marketing-Offline-Can-Substantially-Increase-Your-Online-Business
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2010-05-07T08:48:46Z
2010-05-07T08:48:46Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Marketing Offline Can Substantially Increase Your Online Business
by Jill Hart
The Internet can be a scary place for those looking for a home-based business opportunity. The fear of not connecting personally with others is one concern and many people have been "taken" by online scams in their search for a legitimate business and are fearful to take any more risks. One way to overcome fears such as these is to market your online business locally. By simply offering the person a contact that they can speak to and possibly even meet face to face you will making the statement that your business is legitimate and trustworthy.
It is effective to market your online business locally primarily because potential customers and business recruits prefer to have the option of speaking with the business owner face to face. By attracting customers locally, you can maximize the opportunities to meet with them. You will no longer be that "someone they found online," but someone that they will be able to relate to and feel confident doing business with.
But how do you market locally? Here are some excellent tips:
Besides the common local advertising routes, such as Newspaper Ads, Yellow Pages, Etc., another effective (and inexpensive) way to advertise locally is to post business related flyers around your community. Many grocery stores, libraries, bookstores, and office supply stores offer bulletin boards for this purpose. Make yours stand out and be recognized, yet professional enough to warrant someone trusting you with their business. Also, if possibly have a tear-off section on your flyer so they can take your number and leave your flyer.
Look for events geared toward work-at-home businesses. There are organizations, such as the National Work at Home Mom Association, that hold events across the nation to help promote the work-at-home business owner. At events such as these, you can purchase a booth and make hundreds of local contacts, as well as sales, all in one day.
Reach out to your community. Join your local Chamber of Commerce, get involved in community events and become known to those around you. Pass out flyers and hand out business cards to everyone you meet. Door Flyers also work well for marketing - pick one neighborhood a week and go door to door. Be consistent with your marketing with door flyers, too. If a potential customer sees your ad repeatedly, they will feel more inclined to use your services in the future. Magnets can be great promotional items as well. You can have magnets printed with your business information and hand them out to people that you speak to about your products. Potential clients can keep these on their refrigerator or filing cabinet. You can also leave flyers, magnets or even catalogs around town in places like doctor's offices, hair salons, etc.
Volunteer in your community for marketing success. Diana Ennen of Virtual Word Publishing, Inc. suggests, "Volunteer at school events such as PTA meetings or community functions. When your child's school needs a flyer, volunteer to do it and attach your card to it. Look to see where you can also inexpensively advertise. Often ads in the kid's yearbook or community events newsletter will get your more exposure than the expensive ads in the daily newspapers."
Direct mail is another great tool for gaining local clients. Get the Yellow Pages out and write a professional letter or send your brochures or postcards to those that would be interested in your products or services. Send a mailing to local businesses that may be interested in offering your products to their customers. For example, if you sell home decor products, send a professional letter to real estate agents in your local area. In the letter, describe how your products would be valuable for them to use as thank you gifts when they sell a home.
It's important to talk to everyone you possibly can about your business. You can find prospective customers in line at the grocery store, while waiting at a doctor's office, or even while playing at the park with your children. Let others know that you are excited about it and believe in it. If the people around you hear the excitement in your voice, they may become excited about your business, too! You'll be rewarded with more sales and a business that prospers from year to year.
ABOUT THE AUTHOR:
Jill Hart is the founder and editor of Christian Work at Home Moms, CWAHM.com, and the author of the e-book, The Two Week Devotional Journey for Christian Work at Home Moms. The CWAHM.com website is dedicated to providing moms with free resources to aid them in their work at home search. E-mail Jill at
jill@cwahm.com
for additional information or stop by her site at
www.cwahm.com
. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:48:46Z
You Know A "Derivative Work" When You See One
Staff
http://www.DrLaura.com/b/You-Know-A-Derivative-Work-When-You-See-One
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2010-05-07T08:48:44Z
2010-05-07T08:48:44Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>You Know A "Derivative Work" When You See One
Cliff Ennico
www.creators.com
"I am a public relations consultant who works out of his home. To promote my firm, I have written several articles for my local business weekly newspaper, without charge, and posted them on my Website. Well, I must be doing a pretty good job at these, because a regional business magazine contacted me and asked me if they could reprint one of my articles in the magazine for $250. I said 'sure', of course, but then they hit me with a 10 page contract they want me to sign. It looks pretty harmless overall, but there's a clause in there that says I'm assigning to them all of my rights to this article and any 'derivative works'. Does that mean I can't write on this topic ever again? I would love the free publicity this article would provide, but I'm not willing to put limits on my writing activities for a mere $250."
Whenever you look to publish an article or book with an established publisher, they will want you to sign their standard "publishing contract". Generally, you should not sign these without having your lawyer look at them first (most lawyers will do less for less than one hour of their time if you ask nicely), but in this case the fee you are being paid is so small it probably isn't worth bringing an attorney on board.
Generally, when you write an article or any other "original work", you own the copyright to it from the moment it is created, even though you don't "register" your copyright with the Library of Congress in Washington. The only way you can lose that copyright is to sell or assign it to someone else. So in this case, even though your articles appeared in the local business newspaper, the copyright is yours and no one can reprint it without your permission (for which, of course, you will charge a fee).
Most publishers will want you to "assign" your copyright to them in the contract. What the publisher doesn't want is to publish your article and pay you for it, only to have you then turn around and sell the same article to other publishers. When you think about it, that's a pretty legitimate concern, and the publisher is unlikely to strike the "assignment of rights" clause if you ask them to.
If the publisher's contract requires you to assign your copyright to "the Work" (usually a defined term in the contract), you should look at the definition of "Work" very carefully. Usually, it refers only to the article you are submitting. You are not prohibited from writing articles on similar topics, or from taking pieces of your article and using them elsewhere, as long as you don't take the article verbatim, word for word, and sell it to someone else. When I negotiate publishing contracts, though, I always add a sentence clarifying that you may "copy or reprint the article, either in written or electronic form, and use it solely for promotional purposes." That way you can put the article up on your Website, along with the wonderful tagline "reprinted with permission of XXX magazine".
In your contract, however, the definition of "Work" is slightly broader, and includes not only the article you are submitting to the magazine for publication, but also "derivative works" of that article. The term "derivative work" is defined in the federal copyright laws as "a work based upon one or more preexisting works, such as a translation, musical arrangement, dramatization, fictionalization, motion picture version, sound recording, art reproduction, abridgment, condensation, or any other form in which a work may be recast, transformed, or adapted." Not exactly a model of clarity, is it?
A "derivative work" is a bit like the famous U.S. Supreme Court judge's description of pornography: you can't define it precisely, but you know it when you see it. Common sense will rule the day here. If the magazine publishes your article, and you change just a few words and sell it to another publisher, the magazine is likely to look at that as a "derivative work" of your article, and will be very upset. Likewise, if you read your article word for word into an audio recorder and post it as an "audio clip" on your Website, that is probably also a "derivative work".
Generally, however, another article on the same topic - using entirely different words than your published article - will not be a "derivative work" and the magazine will have no rights to it, as under the copyright laws it will be considered a separate, "original" work. Likewise, taking just one paragraph from your article and including it in another, original article on the same topic, should not get you into hot water with your publisher.
Still, since this is only going to be a one-time publication in the magazine, I would ask the publisher either (1) to clarify in writing that other works on the same general topic will not be considered "derivative works" under the contract, or (2) to make the assignment of copyright "nonexclusive" six months after the article appears in print in the magazine. That way, the publisher has the right to control publication that they want, while you have the peace of mind that you need.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:48:44Z
Some Taxing News From France For Ebay Sellers
Staff
http://www.DrLaura.com/b/Some-Taxing-News-From-France-For-Ebay-Sellers
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2010-05-07T08:48:41Z
2010-05-07T08:48:41Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Some Taxing News From France For Ebay Sellers
Cliff Ennico
www.creators.com
#147;When I sell stuff on eBay to people outside the United States, do I have to be concerned at all about paying taxes in foreign countries?#148;
For most eBay sellers, who sell only occasionally to buyers in other countries, the short answer is #147;no#148;.
Most foreign countries tax their citizens on goods they bring into the country #150; these taxes are commonly called #147;value added taxes (VAT)#148; or #147;general sales taxes (GST)#148; #150; but sellers who reside in the United States are not required to collect the tax or add it to the purchase price of the goods sold. It#146;s the buyer#146;s problem. As an honorable member of the eBay community, though, you should include a statement in all your auction pages as follows: #147;Buyers living in countries outside the United States may be required to pay value added tax (VAT) and other taxes on their purchases on eBay. Please consult your tax advisor for advice before bidding on this item.#148;
Once you start selling lots of goods outside the United States, and especially once you start selling regularly on eBay#146;s overseas Websites (such as eBay France, eBay Italia or eBay UK), you have to start being concerned about foreign taxes, laws and regulations. A recent case out of France highlights the kind of legal hassles a serious eBay seller can encounter when his or her selling activities cross national boundaries.
In this case, a professional art dealer in the United States was clobbered with thousands of Euros in fines because he was operating a business in France illegally without registering to obtain a commercial vendor#146;s license, as French businesses are required to do. The record showed that the dealer sold more than 470 statuettes, vases, and other art objects to French citizens on eBay France. The defendant claimed he was not a professional seller, having acquired his art objects from flea markets and personal relatives, and that he sold the items on eBay #147;to appease his girlfriend who threatened to move out if he did not get rid of the clutter#148;.
The French court did not buy that argument. Under France#146;s commercial code (and those of some other European nations), whether or not you are a #147;professional#148; depends largely on whether or not you are selling things on a regular basis while taking measures to make profits and using the proceeds to make a living. For example, someone who buys rock concert posters in the United States with the sole purpose of reselling them in France for a profit would be considered a #147;professional#148;, even if he is not based in France or conducting his business from a physical location there.
While the French case should not lead U.S.-based eBay sellers to #147;block#148; citizens of other countries from bidding in their auctions, eBay sellers need to be aware that many countries are likely to require them to pay their income, sales and other taxes #150; and comply with their commercial laws and licensing requirements -- if some of the following conditions apply:
the seller is clearly engaged in business online and is not selling on eBay merely as a #147;hobby#148;;
the seller posts its auctions directly on the local eBay platform (for example, eBay France), rather than on the U.S. Website;
the seller#146;s auction pages are in the local language and currency, and are clearly #147;targeting#148; citizens of the host nation; and
the seller is selling significant quantities of goods to citizens of the host nation on a regular basis (in other words, not just occasional sales of items the seller thinks might generate local interest because of their subject matter or content).
If you find yourself in this situation, the best advice is to hook up with another eBay seller who is a citizen of the host nation, and either (1) have that person act as your local #147;agent#148; and #147;distributor#148;, hosting your eBay auctions in that country, collecting the winning bids, and dealing with the local laws and taxes, or (2) have that person act as an #147;advisor#148; to help you comply with whatever laws, taxes, regulations and other requirements the host nation may impose. For a fee, of course, or a percentage of your winning bids in that country.
You can find eBay sellers in other countries on the #147;eBay International Board#148; chat room (pages.ebay.com/community/chat/index.html, click on #147;eBay International Board#148;). Be sure to check their feedback thoroughly before doing business with them, especially if they are located in a country that is prone to fraudulent online activity #150; a list of such nations is maintained and updated by the international Merchant Risk Council (
www.merchantriskcouncil.org
).
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is #145;Small Business Survival Guide#146; (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:48:41Z
Work-at-Home Scams Dont Become a Victim
Staff
http://www.DrLaura.com/b/Work-at-Home-Scams--Dont-Become-a-Victim
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2010-05-07T08:48:39Z
2010-05-07T08:48:39Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Work-at-Home Scams #150; Don#146;t Become a Victim
By Liz Folger, Work-at-Home Mom Expert
The ads are so tempting, and just think -- what if you could make hundreds of dollars a day working from home? Unfortunately, people are losing money every day to work at home scams. Don't become a victim. Here are some ways to make sure you don't become scammed!
You know you're just about to get scammed by a work-at-home ad when...
The very first line states you can make hundreds of dollars a week working from home.
There is no experience needed.
You can work just a few hours a week and still make a bundle of money.
There is lots of CAPITALIZATION AND !!!!!! used in the ad.
You read an extremely vague ad. You haven't a clue what the business is about; but boy, could you be making the bucks.
You're asked to call a 900# for more information.
For a fee, a company will send you a list of businesses that are looking for home workers.
You are forced to make a decision immediately and are made to feel stupid if you say no to their offer.
How to Check A Company Out
Whether you have those funny feelings about the claims of a company or not, do some background research on them.
Hire a lawyer. This may seem like a waste of money, but in the long run it could really save you some financial heartache.
Call the Better Business Bureau (in the state the company resides in) to see if there have been any complaints against the company.
Ask the company if you can talk to any of their happy customers. Please be aware that companies can and will give you false customers to talk to. If these people sound way too happy, I would be a little leery.
Questions You Should Ask If You Are Thinking About Buying A Business Opportunity
Find out from your sponsor, in writing, what is involved with this business; such as: Are you able to return merchandise if it doesn't sell? Is there a money back guarantee? How long have they been in business for? (if it's under a year, I would again be very leery). What is your total cost of this business opportunity, including fees, supplies, and equipment? Will you be paid on salary or commission and how often and who will pay you? Ask the program sponsor to write down every step of the business.
What To Do If You Become The Victim Of A Scam
First you need to write the company that you feel has ripped you off telling them you would like your money back. If they don't agree with you, then you need to let them know you plan to notify officials. The following people should be notified:
If you read about this work-at-home scheme in a magazine, let the editor know you've been ripped off by these people and you're not happy about it.
The Attorney General's Office in your state or in the state where the company is located.
National Fraud Information Center. Call them if you feel you are a victim of a "get-rich-quick" or an "easy money" scheme. Check out their web site for daily alerts or new scams. 1-800-876-7060
Your local Consumer Protection Offices.
Your local Better Business Bureau (BBB) and the BBB in the state of the scammer.
Postmaster. Notify if you received the information through the mail.
The Federal Trade Commission. While the FTC cannot resolve individual disputes, the agency can take action if there is evidence of a pattern of deceptive or unfair practices. To register a complaint, write to: Correspondence Branch, Federal Trade Commission, Washington, DC 20580.
Liz Folger is the founder of
www.bizymoms.com
. Bizymoms.com is the leading online resource for work-from-home ideas. The site offers home-based business start-up kits, online classes, e-books, chats and enthusiastic support for moms who want to have it all - a family and a career. Visit
www.bizymoms.com
for more information.
* The author gives permission for the use of this article on DrLaura.com.
Staff
2010-05-07T08:48:39Z
When The "Three Musketeers" Ain't Nuthin' But A Candy Bar
Staff
http://www.DrLaura.com/b/When-The-Three-Musketeers-Aint-Nuthin-But-A-Candy-Bar
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2010-05-07T08:48:36Z
2010-05-07T08:48:36Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>When The "Three Musketeers" Ain't Nuthin' But A Candy Bar
Cliff Ennico
www.creators.com
#147;I#146;m the founding member of a limited liability company (LLC). Over two years I let in two other members, and ended up resigning my majority ownership (stupid move). I trusted these guys. You know, we were supposed to be #145;The Three Musketeers#146;.
Over the years I developed a ton of great marketing materials and created many educational, television and documentary film products for the LLC. Now I#146;ve been isolated, voted out as Manager, been completely taken out of the loop (they have a current court order against them for now showing me financial documents I#146;ve been asking for for nine months) and they#146;re trying to hold me to a broad noncompete agreement which says that any member won#146;t undertake any transactions which may be considered to be competitive with the LLC. Yet, they won#146;t let me out of the LLC either, unless I turn over to the LLC all rights that I may have in every product created by me over the past eight years. Crazy situation, huh?#148;
Crazy, yeah, but not all that uncommon, as readers of this column know. Don#146;t you now wish you had a lawyer representing you when you brought in these two guys? It could have saved you a ton of grief.
You#146;re obviously in litigation with your old LLC and have a lawyer representing you; I#146;m not going to say anything here to second guess his or her judgment because I don#146;t have all the facts. But it sounds like you never assigned to the LLC your copyrights in the television programs, film scripts, and other materials you created for the LLC (if you had done so, your former partners wouldn#146;t be asking you to do that now). If that#146;s the case, you probably still own these rights, and that gives you some real leverage over the other LLC members. Works created by an LLC member, unlike those created by an employee, are not considered #147;works made for hire#148; under the federal copyright laws. They have to be actually assigned to the LLC in writing. Ask your attorney if it#146;s possible to get a court order, called an #147;injunction#148;, prohibiting the LLC from using any of your creative works without your permission until the lawsuit is resolved or settled. That should get your former business partners to the bargaining table real fast.
Next time you set up an LLC with someone, make sure your Operating Agreement clearly spells out that (1) you are the only Manager, (2) you can only be removed as Manager by a vote of 100% of the members (including yourself), and (3) all decisions relating to the LLC business are to be made by you alone. And if anyone ever talks about #147;Three Musketeers#148; again, offer them a candy bar.
#147;I am in a rock band with some other guys, and we currently have a tax ID number. Well, our manager got a tax ID number for the band in order for us to open a business checking account at the bank. Now we have a problem because he is not going to be managing us anymore. I will be handling all of the banking transactions from now on. How do I go about getting a new tax ID number? Or, can our old manager just transfer that tax ID to be under my name?#148;
It sounds like you may have a bigger problem here than just tax ID numbers. If your old manager filed for your tax ID number as a #147;partnership#148; (which is what your rock band is, legally) and named himself as a partner, he is technically your business partner, and you cannot legally get rid of him without buying him out for whatever he considers a fair price.
You need to get to a lawyer, pronto, for some legal advice. If your old manager is willing to be #147;bought out#148;, make sure he assigns over to you all rights he may have in any songs or other copyrighted material you may have developed. Otherwise he owns a piece of your music going forward, and you don#146;t want that.
I#146;ve said it before -- never, ever, ever form a music group without (1) a clear written partnership agreement among the members saying who#146;s in the band, who owns what songs, how band members can withdraw, and how band members can be forced out, and (2) a clear written #147;representation agreement#148; between the band and any agent, manager, promoter, or similar person who gets paid for doing anything to help the band. Without agreements, the wrong people tend to get a lot more powerful than they deserve to be.
For a scary look at how one rock band really fouled up its relationship with its agent/manager, read #147;Got a Revolution!#148;, Jeff Tamarkin#146;s biography of the 1960#146;s psychedelic rock band Jefferson Airplane. These guys needed #147;Somebody to Love,#148; and they didn#146;t get one for a long, long time.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is #145;Small Business Survival Guide#146; (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:48:36Z
Some Tricky Issues When you Sell Stuff On Consignment
Staff
http://www.DrLaura.com/b/Some-Tricky-Issues-When-you-Sell-Stuff-On-Consignment
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2010-05-07T08:48:34Z
2010-05-07T08:48:34Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Some Tricky Issues When you Sell Stuff On Consignment
Cliff Ennico
www.creators.com
#147;I am the owner of an antique mall. I sometimes sell items for others on consignment, while some others pay me rent to place their items in my store. I sell the items and collect the sales tax, which my store mails in to the state quarterly. I then keep a consignment fee, and pay the excess over to the seller. The money the sellers make on their items is given to them through my business checking. My accountant claims I am to issue each of my consignment sellers a 1099 form at year's end if I#146;ve paid them more than $600.00 during the year. I am only the middleman for the transactions from seller to buyer. The individual sellers do not in any way work for me, nor do they invest time in the process of these transactions. I am told by many people in this same business that she is wrong. She insists she's right.#148;
And so she is. Even though you are a #147;middleman#148;, you are legally required to prepare and send a 1099 to each consignment seller, because they have no incentive to report their receipts to the IRS. According to CPA and tax expert Joseph Sweeney (
joe_sweeney@att.net
), if you sell an antique (for more than $600) to a business, the business is required to send a 1099 to you; you then have to issue a 1099 to the original seller to establish that he or she has the ultimate liability to pay income tax on the sale. If the buyer is an individual consumer, he or she does not have to send a 1099 to you, but you must send a 1099 to the consignment seller if the #147;net#148; to the seller exceeds $600. If you pay less than $600 (total) to a seller during the year, or if your seller is a corporation or nonprofit organization, you do not have to send a 1099 at year#146;s end. If your seller is a partnership or limited liability company (LLC), you still have to send the 1099, according to Sweeney.
#147;I am a very successful eBay Trading Assistant. I am trying to get some type of insurance on the items I sell/store for my client's. I currently store these items in a climate controlled storage unit separate from my office. Many of the insurance companies do not understand eBay nor offer me a suitable policy to cover this. The longer I go without the insurance the more vulnerable I feel I am as a business. Any help or advice would be appreciated.#148;
According to business insurance expert Susan Krasnow (
susan.krasnow@nicholsonassoc.com
), it#146;s very difficult to get property/casualty insurance for goods you hold on consignment for others. #147;People in this type of business normally carry lots of different inventory, everything from estate jewelry to automobiles, so it#146;s difficult for insurance companies to assess the risks and write a policy that makes sense,#148; she explains. One possibility, according to Krasnow, is to contact Lloyd#146;s of London (
www.lloyds.com
), which has long been famous for underwriting risks no other insurance company will touch.
Another possibility is to consider warehouseman#146;s, or bailee#146;s, insurance. While you probably don#146;t consider your business a #147;warehouse#148;, that is technically (and legally) what you are when you accept goods on consignment. If you have companies in your area that conduct estate auctions, pay them a visit, pretending to be a customer. Tell them you are very concerned about the goods being damaged while they are being held for sale, and ask them who they use for coverage. If two or more companies use the same insurance carrier, contact them and get a premium quote.
When doing business on a consignment basis, it#146;s important to have a written agreement with the people who consign stuff to you (called #147;consignors#148; in legalese). A good attorney can draft one of these for you (in plain English, and no more than two pages in length) for under $500. Here are three provisions that should be in every contract for the consignment of goods:
a provision that prohibits the consignor from selling the goods to someone else while you are trying to sell the goods on consignment;
a provision requiring the consignor to pay you a fee (sometimes called a #147;breakage fee#148;) if they withdraw an item from consignment before the contract term ends; and
a #147;successors and assigns#148; clause that keeps the contract alive if the consignor dies or becomes permanently disabled during the contract term.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is #145;Small Business Survival Guide#146; (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:48:34Z
10 Ways To Market Inexpensively and Reap Big Rewards
Staff
http://www.DrLaura.com/b/10-Ways-To-Market-Inexpensively-and-Reap-Big-Rewards
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2010-05-07T08:48:32Z
2010-05-07T08:48:32Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>10 Ways To Market Inexpensively and Reap Big Rewards
By Liz Folger, Work-at-Home Mom Expert
If you#146;re in business for yourself, you have probably noticed you don#146;t have the same marketing budget as Coca Cola or Proctor Gamble. However, you still need to get the word out about our businesses. You just have to do it with a few less million dollars.
Usually the first thing that pops into the mind of a new self-employed person is, #147;I have to place an ad.#148; However this can cost money. Place just a few ads and soon your marketing budget is dry as a bone. Also keep in mind that a person has to see your ad six times in the same publications before they even think of using your business. Now if that is a monthly publication, I#146;m telling you it will take you six months till a person actually thinks about picking up the phone to call you. Now that isn#146;t good news. Especially if you would like to get customers a bit sooner than that. So what#146;s a home business mom to do?
Many of the self-employed moms I talk to say most of their business comes from one simple source -- word of mouth. It comes from that one happy customer who liked what they did for them and started to spread the word. What would make you want to shop somewhere? A friend telling you about a great service or product, or an ad in the paper telling you the same thing?
Here are a few suggestions on getting the word out about your business in the quickest and cheapest way possible.
Send out a press release, and not just when you open your business. You need to tell the world if you#146;ve added some new service or product or if you#146;re business is involved in a charity event. Be sure you give the release a human slant. Don#146;t just talk about how wonderful your business is, talk about what your business can do for your future customers.
Join Organizations. Chamber of Commerce, women in business organizations, and any type of organization your target market belongs to.
Put your service or product for sale in a charity auction.
As soon as you start your business write every single person you know a postcard announcing your new business venture. Although they may not need your business, they just may tell someone who does.
Ask for referrals from other happy customers. Cold calling will never be the same again if you use this approach.
Write articles for web sites. You don#146;t need to push your product in the article. But write about your area of expertise. Then include a nice byline at the end of the article.
Go to chats and visit message boards on the Internet. Make friends in cyberspace. Once again, don#146;t push your product or service on people. That will only turn them off. Instead go out of your way to help people and answer their questions. Before you know it you#146;ll be ask what type of work you do.
Use those sig files at the end of your e-mails and posts to message boards. Keep them short (4-6 lines).
Use all those Internet sites that offer FREE Classified ads.
Host chats, and give talks at your local Rotary Clubs. Once again #150; talk about your area of expertise.
Liz Folger is the founder of
http://www.bizymoms.com
. Bizymoms.com is the leading online resource for work-from-home ideas. The site offers home-based business start-up kits, online classes, e-books, chats and enthusiastic support for moms who want to have it all - a family and a career. Visit
http://www.bizymoms.com
for more information. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:48:32Z
Time To Clean Out Santa's Mail Bag [Part One]
Staff
http://www.DrLaura.com/b/Time-To-Clean-Out-Santas-Mail-Bag-Part-One
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2010-05-07T08:48:30Z
2010-05-07T08:48:30Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Time To Clean Out Santa's Mail Bag [Part One]
Cliff Ennico
www.creators.com
At year-end, I always clean out my e-mail #147;in box#148;, and there#146;s always a few e-mails from readers I didn#146;t get a chance to address during the year. Some people dream of sugar plums, others just want their two front teeth, but these folks want answers. So here goes . . .
#147;I#146;m starting a auto repair shop with two friends. We#146;ve agreed to share profits equally (one-third each), but we also agree that I will run the business. How can we do that without my having 51% of the ownership?#148;
Simple. You form a #147;manager managed#148; limited liability company (LLC). You would be the sole #147;manager#148;, with authority to run the business and make the day to day decisions. The three of you would be the #147;members#148;, or owners, and would split the ownership one-third each. Be sure your LLC operating agreement (similar to a partnership agreement) contains the following provisions:
you cannot be removed as Manager unless all 3 Members agree (including you);
each year the three of you will meet to determine how much you can take out of the LLC checking out as compensation for your management services #150; if you can#146;t agree by March 31 of any calendar year, your compensation will remain the same as it was in the previous year; and
any decision requiring the vote of the Members (such as mergers, asset sales or bankruptcy) must be made by 100% vote.
#147;My friend is in a partnership with two other people for a dance studio. My friend owns 60% of the partnership. In the past few months, her other two partners have forced her out of the business #150; first they changed the locks on the doors, then they refused to schedule students for her. Is there anything she can do to keep this business from being stolen out from under her?#148;
Oh, the joy of partnerships! It sounds like your friend has been a #147;doormat#148;, letting the other partners walk all over her, as is common in these situations. With 60% ownership, though, she is someone who #147;must be obeyed#148;, whether the other partners like it or not. Let#146;s just hope there#146;s something in writing somewhere saying she does indeed own 60% of the partnership.
If there is, then your friend should have a lawyer write a letter to the other two partners (send it by registered or certified mail), which will read something like this. #147;As we near the end of the calendar year, I need to know how much I will be making from our partnership. As a 60% partner, I am legally entitled to 60% of the profits from this business. As soon as you receive this letter, please render an accounting of the revenue, expenses and profits of this business since January 1, 2005, and be prepared to write me a check for 60% of the profits on December 31. If any of you have taken out more than your percentage share of the profits (40% for the two partners combined) in compensation, the excess must be promptly returned to the partnership checking account to avoid legal action.#148; That ought to get their attention; if they don#146;t respond, then your friend should call a #147;partners#146; meeting#148; to discuss the conduct of the business.
At this meeting, your friend should be prepared to offer to sell her 60% share in the business to the two other partners. They obviously want to move forward without your friend, and that#146;s okay as long as they pay your friend something for her contribution to the business thus far.
#147;I#146;m thinking of starting a business with a software programmer. Are there any special rules about doing business with programmers?#148;
Not really #150; partnerships are partnerships no matter who you have them with. Still, I would be wary about giving a programmer ownership of a company unless he has developed the software product you are selling, and is prepared to work 24/7 to keep that product up to date. If you own the software, and he#146;s just providing labor, don#146;t make him a partner until he proves to you just how indispensable he is to the product#146;s success.
More next week . . .
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is #145;Small Business Survival Guide#146; (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:48:30Z
A New Approach To Holiday Gift-Giving
Staff
http://www.DrLaura.com/b/A-New-Approach-To-Holiday-Gift-Giving
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2010-05-07T08:48:27Z
2010-05-07T08:48:27Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>A New Approach To Holiday Gift-Giving
Cliff Ennico
www.creators.com
If you are like most business owners, buying holiday gifts for your best clients and other important business relationships is one of the most stress-inducing things you do each year. Here are some of the problems:
You want to get a personalized gift for each recipient that shows you gave the matter some thought (not the usual pen-and-pencil set, fruit basket, or pocket calendar with your company name emblazoned on the cover), but you don#146;t have time to get an individual gift for each person.
You are afraid the recipient won#146;t like the gift, won#146;t be able to use it, already has it, or (Heaven forbid) will be offended by the gift.
You are afraid 10 other people have given the recipient the same gift, and you will appear unimaginative.
December is your busiest time of year and you simply don#146;t have the time to shop or pore through a three-foot-high stack of gift catalogues to find the perfect gift.Wouldn#146;t it be a lot simpler if people could simply tell you what they wanted, so you could just give it to them, make them happy, and be done with it?
Don#146;t laugh. One of the hottest trends is holiday gift-giving is something that#146;s been around for decades #150; the gift registry. If you think they#146;re just for weddings and baby showers, think again.
#147;People are doing more and more gift registries for holiday gifts,#148; according to Hans Xu, founder of Felicite.com, Inc. (
www.felicite.com
), one of the nation#146;s leading online gift registries. #147;When you factor the price of gas, traffic congestion, and all that goes into the cost of buying gifts, to be able to make the purchase from an online gift registry is a real convenience for a lot of people,#148; says Hsu, who adds that #147;it#146;s also good for the environment#148;.
A typical registry is limited to gifts from one merchant, so registrants have to set up, and gift givers visit, several different registries; Felicite.com enables recipients to set up one registry and register gifts from any merchant in the United States. They can also register cash gifts such as donations to charity, a scholarship fund, or a down payment on a new house. According to Xu, a lot of people who are environmentally conscious and oppose the materialistic concept of #147;we need more stuff#148; find online gift registries an excellent way to channel funds into their favorite charities. #147;Just be sure not to pick political causes only,#148; advises Xu, explaining that #147;while having people register for charitable gifts is a great way to tell people who you are and what you believe in, it#146;s better to give people a range of different types of charities, just in case their priorities are different than yours.#148;
According to Xu, many gift registries on Felicite.com are for offbeat or one-of-a-kind things you can#146;t find in traditional retail outlets, such as works of art by individual artists. Hsu#146;s favorite gift-giving story is about a newly married couple who couldn#146;t decide whether to register for a big-screen television set (for him) or a luxury hot tub (for her). They registered for both, and they got both.
Felicite.com has a network of about 120 merchants around the country. If a gift from one of these merchants is purchased, Felicite.com will send the order to the merchant for delivery. If the merchant is not part of Felicite.com#146;s network, then the gift is registered as a cash gift, and Felicite.com will send the contribution to the registrant so that they can pick up the gift themselves.
Felicite.com is free to registrants. It makes money from commissions, product discounts and advertising. For example, when it places a physical order, it may get a commission or discount from the merchant it is sending the order to. On cash gifts, it charges a 4.9% transaction fee. Felicite.com also has a unique partial purchase feature (patent pending) that allows gift givers to share the cost of gifts. This way they can collaborate on a large gift.
What about the element of #147;surprise#148; in gift-giving? Xu feels it is highly overrated: #147;Realistically speaking, do you really believe that if someone is surprised by a gift they don#146;t want or like, they are really going to keep it?#148; asks Xu, pointing out that the long gift return lines after the holidays are full of people who were, #147;surprised by a gift.#148;
Yeah, well, okay, but what about the personalized aspect of giving? Doesn#146;t an online gift registry help make the world a colder place by making it easy for people to avoid taking the time and trouble to find the right gifts?
Xu strongly disagrees: #147;Does it make you feel warm and cozy inside if your friend took 5 hours to get you the wrong gift, as opposed to 3 minutes to get you the right one? Of course not. If you were a true friend, you would try to save him some trouble.#148; Registering online, in Xu#146;s view, can be viewed as a compassionate and selfless act. Your friend gets to spend more time with family, and there is one less shopper to tie up traffic and parking.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is #145;Small Business Survival Guide#146; (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:48:27Z
Some Things To Be Thankful For
Staff
http://www.DrLaura.com/b/Some-Things-To-Be-Thankful-For
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2010-05-07T08:48:25Z
2010-05-07T08:48:25Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Some Things To Be Thankful For
Cliff Ennico
www.creators.com
Thanksgiving#146;s over, except for the leftovers, but it#146;s never too late to remind ourselves that, no matter how bad things get for business owners in this country, there are many things we entrepreneurs should give thanks for every day we#146;re alive.
Here are some of the things every self-employed person should be thankful for:
The Rule of Law
. I#146;m not saying the U.S. Government is perfect by any means, or that our legal and tax system is always 100% fair to self-employed folks (it isn#146;t), but you should be grateful that you live in a country where people can set up their own businesses without having to pay #147;baksheesh#148; to corrupt officials or operate illegally because of outrageous regulations, taxes and policies that are designed to keep people from moving up the social ladder or challenging the status quo. If you think that#146;s too rosy a picture, ask any of the millions of legal and illegal immigrants living in America (they aren#146;t hard to find) what things were like where they came from.
A Pro-Entrepreneur Culture
. Fifty years ago, if you started your own business, you were perceived as a loser #150; too dumb or lazy to succeed at the #147;big company#148; game. Today, you are viewed as a hero. When you watch movies or TV shows, you rarely see entrepreneurs portrayed as the #147;bad guys#148; (come to think of it, they always seem to be lawyers . . . ) If you#146;re in a roomful of corporate people, watch their eyes light up when you say you run your own company, even if you#146;re not doing all that well.
The Computer
. While computers and software are often maddening to deal with, we should be thankful we live in an age where just about every human being can afford the technology and equipment necessary to start just about any kind of business. Not too long ago, if you wanted to start a business, you had to spend a fortune on machinery and labor (meaning lots of manual workers) before you could even open your doors. Now, you don#146;t need heavy machinery or labor (other than your own) to start most businesses, and if you do, you can always #147;outsource#148; your manufacturing, or buy secondhand equipment on eBay for pennies on the dollar.
The Internet
. There is really no such thing as a #147;small business#148; anymore. With the Internet, even a Mom and Pop business, or a one-person law firm, can reach a national or international marketplace at extremely low cost, and compete #147;head to head#148; with companies many times their size. You can access information online that not too long ago would have been available only to a privileged few in private libraries or in expensive training courses.
Your Spouse and Family
. You should be thankful if:
your spouse did not shoot you (or file immediately for divorce) when you announced you were leaving corporate America to work in your pajamas out of your spare bedroom;
your spouse actually encouraged you to get out and get started because he or she cares more about your happiness than your former paycheck;
your kids truly don#146;t mind that you may not make enough money to send them to Harvard, and are willing to buckle down and get jobs (or maybe start their own businesses) to help finance their own educations; or
one of your kids actually wants to start working with you so he or she can take over your business someday in lieu of going to Harvard.
You Are Surviving
. You should be thankful if you can say the following with a straight face every day: #147;I am not yet rich, but I am making a significant income, paying my bills and supporting my family by working out of the spare bedroom of my home. I am not entirely the #145;master of my fate#146; (no entrepreneur ever is), but I can say #145;no#146; to the wrong clients, and to projects that don#146;t make sense. I will never again work in a cubicle, put up with petty office politics, or kill myself to impress a boss who doesn#146;t deserve the power and authority he or she has been given. I will never again #145;pull an all nighter#146; at work so that someone else can spend a quiet evening with his or her family. If anyone is going to get rich from my labor, blood, sweat and tears, it is going to be me.#148;
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is #145;Small Business Survival Guide#146; (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:48:25Z
Can An LLC Member Put Himself On The Payroll? - Part II
Staff
http://www.DrLaura.com/b/Can-An-LLC-Member-Put-Himself-On-The-Payroll---Part-II
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2010-05-07T08:48:23Z
2010-05-07T08:48:23Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Can An LLC Member Put Himself On The Payroll?
(Part 2)
Cliff Ennico
www.creators.com
Can a member (owner) of a limited liability company (LLC) who doesn't want to pay estimated taxes be paid a regular salary with payroll deductions just like any other employee?
According to Diane Kennedy, a Phoenix, Arizona CPA and author of the best-selling "Tax Loopholes" series of books and audio programs for business owners (
www.taxloopholes.com
), the short answer is "no". "Like a partnership, the owners of an LLC cannot take a salary; they can only take guaranteed 'draws' or distributions," says Kennedy ("guaranteed payments" to LLC owners were discussed in last week's column).
But that's not the end of the story, according to Kennedy, whose most recent book is "Tax Loopholes for eBay Sellers" (McGraw-Hill, $24.95). Is the IRS likely to go after an LLC whose members pay themselves salaries and withhold taxes on each paycheck? Probably not. "The IRS is getting its tax money a lot faster if you pay yourself a salary than if you pay estimated taxes four times a year, and they're probably collecting slightly more in taxes than if you withhold regularly, so there's really no incentive for the IRS to spend a lot of time tracking down people who don't follow this rule," Kennedy explains. In other words, "no harm, therefore no foul."
Still, Kennedy cautions, no one (including herself, or myself for that matter) is going to tell anyone that it's OK to ignore tax regulations just because the IRS doesn't vigorously enforce them, or doesn't have any real reason to do so. Murphy's Law says that if you ignore a rule because "everybody else does it and gets away with it", you are guaranteed to be the person the IRS chooses to audit as a "test case".
Accordingly, Kennedy advises her LLC clients not to pay their members a salary and withhold payroll taxes. Instead, Kennedy says LLCs with working members who don't want to pay quarterly estimated taxes should elect to be taxed as if they were subchapter S corporations. Unlike LLC members, shareholders of a subchapter S corporation who work in the business can take a "salary" and withhold payments from each paycheck, as well as receive a "distribution" of their percentage share of the corporation's profits, usually at the end of the calendar year.
Kennedy explains that "the portion of the LLC member's compensation that is treated as a 'distribution' for tax purposes is not subject to self-employment taxes, so you save money, while the portion that is treated as 'salary' is fully deductible to the LLC." Kennedy warns, though, not to be too aggressive in maximizing the amount of compensation that is treated as a "distribution". If you do, you may run afoul of IRS rules requiring employees to receive "reasonable compensation" for their services.
Keep in mind also that by electing to be taxed as a subchapter S corporation, your LLC will be subject to all of the legal limitations imposed on subchapter S corporations and their shareholders. So, for example:
your LLC cannot have more than 100 members;
all LLC members must be 'natural persons' (no corporations or other LLCs allowed); and
all LLC members must be U.S. citizens or "green card" holders (no foreign nationals or illegal aliens).
An LLC can elect to be taxed as a subchapter S corporation in two steps. First, your LLC should file IRS Form 8832 (and any comparable state tax form) electing to be taxed as if it were a corporation. Then, within 75 days of filing Form 8832, your LLC would file IRS Form 2553 (and any comparable state tax form) electing "subchapter S corporation" tax treatment. Kennedy adds that if you live in a community property state (such as California), the spouses of all LLC members will have to sign IRS Form 2553 even though they will not be playing a role in the LLC business.
The bottom line: having your LLC elect to be taxed as a subchapter S corporation will enable the members to draw salaries and withhold taxes just like any other employee, without violating any tax laws, but you will probably need the help of a good CPA or tax advisor before you consider setting up an arrangement like this.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is 'Small Business Survival Guide' (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2006 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:48:23Z
You Mean, You're Really Not My Lawyer?
Staff
http://www.DrLaura.com/b/You-Mean,-Youre-Really-Not-My-Lawyer
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2010-05-07T08:48:20Z
2010-05-07T08:48:20Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>You Mean, You're Really Not My Lawyer?
Cliff Ennico
www.creators.com
It happened again last week.
I had just returned to the office from a trip to the West Coast. In addition to the usual West-to-East jet lag, my flight passed through some pretty heavy weather in the Midwest. We were on the ground at Chicago#146;s O#146;Hare airport for about two hours while the plane was buffeted with 50-mile-per-hour winds. I arrived back home at 2 a.m. and slept until about noon the next day.
It was only then that I checked my e-mails, and found a message from a company I#146;d never heard of, addressed to all of the company#146;s shareholders, announcing the company#146;s annual meeting the following week. For some reason I was copied, or #147;cc#146;d#148;, on the message. I responded politely to the message, saying #147;thank you for inviting me to your annual meeting of shareholders; unfortunately, I can#146;t attend due to a prior commitment.#148; Which was true #150; I had to speak somewhere that evening.
The e-mail response was immediate: #147;Cliff, you#146;ve got to attend our meeting! You#146;re our lawyer, and we need you to run the meeting!#148;
My first response was shock #150; how could I have been so dumb as to forget a client#146;s annual meeting? But when I checked my calendar and waded through my #147;active client#148; list, I couldn#146;t find any reference to this company. I finally called the company president (who had sent the e-mail), apologized for my poor memory, and asked how we knew each other.
It turned out that we had met several months earlier at a trade show in New York City. The president had mentioned something about needing a corporate lawyer, and I had given him my card with an invitation to call me at his convenience. We had had no communication at all since that time, but the President assumed that I had agreed to act as the company#146;s lawyer. Since the company always held its annual meeting on the first Friday in December, he simply sent his usual notice and copied me.
Needless to say, it was a pretty long call while I explained to him the legal consequences of sending an e-mail with a #147;cc#148; to an attorney. Not only did I have to send him a letter by certified mail disclaiming the existence of any lawyer-client relationship (what lawyers call a #147;nonrepresentation letter#148;), but I had to send e-mails to all of the company#146;s shareholders explaining that I had not at any time provided legal services to the company. I tried to do it in as nice and positive a way as possible, but it had to be embarrassing to the company president to admit to his shareholders that he sent out an annual meeting notice without retaining legal counsel.
The irony is . . . I get e-mails like this every few months or so. It is simply amazing to me how many entrepreneurs #150; sometimes very successful ones, as was the case here #150; do not know how to go about hiring a lawyer, accountant or other professional.
Here are some tips for those of you out there wondering if you have a lawyer or not:
If you don#146;t have a written fee agreement with an attorney, and have never received a bill from that attorney for legal services, that person is not your attorney. You will have to sign an agreement, and possibly pay an upfront fee (called a #147;retainer#148;), before you will get on his or her calendar.
If you take any action that might have legal consequences and fail to solicit input from your attorney before doing so, an attorney is not obligated to assist you #150; they can say #147;no#148;, just like I did. The time to get an attorney on board is BEFORE you take any action that might have legal consequences.
No attorney I know will call you #147;out of the blue#148; just to find out if you need their services or remind you of important dates #150; there are rules of ethics prohibiting them from doing so, they are just too darn busy, and let#146;s face it, you really don#146;t want to pay your attorney for #147;social calls#148;. If you need legal help, the responsibility is yours to initiate contact with an attorney.
Always remember that your attorney is working for multiple clients at any given time. While you may be an important and valued client (and I believe an attorney should never have any UN-important clients), you cannot assume that your attorney will be able to drop everything else they#146;re working on and focus their attention on your immediate problem. Give them as much notice as you yourself have, and be sure to let them know when you absolutely must have an answer, or a document, or a meeting.
Communication is the key to all successful relationships; if you don#146;t communicate well with your attorneys and other key advisors, you can#146;t really blame them if they don#146;t communicate well with you, or fail to show up at your annual meeting.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is #145;Small Business Survival Guide#146; (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:48:20Z
[Part 2 of 2]
Staff
http://www.DrLaura.com/b/Part-2-of-2
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2010-05-07T08:48:18Z
2010-05-07T08:48:18Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Ten Things To Look Out For When Buying A Business
[Part 2 of 2]
Cliff Ennico
www.creators.com
Here are several more points that purchasers, and their lawyers, frequently overlook when negotiating to buy a small retail or service business.
Negotiate a #147;Letter of Intent#148;. Also called a #147;term sheet#148;, a letter of intent (or LOI) is a short, two or three page letter agreement between the buyer and seller of a business that spells out all of the important terms and conditions of the sale. For example, the purchase price, how and when the purchase price will be paid, the assets that will be sold to the buyer (and those the seller will keep for his own use), the terms of the seller#146;s noncompete agreement, and so forth.
While LOIs are technically not binding on the parties, it is well worth the time and effort to hammer out as many of the business issues involved in an LOI before the lawyers begin drafting the #147;definitive#148; legal contracts that will document the sale. A well-drafted LOI helps the lawyers get the sale documents right on the first (or possibly the second) draft, since most of the important terms and conditions will already have been dealt with in the LOI and are not subject to further negotiation. Without a LOI, you will end up negotiating the business deal and the #147;legalese#148; of the definitive documents at the same time, requiring multiple drafts of the sale documents and tons of money in legal fees.
Watch Out for Bulk Sales Laws. Most states have done away with these, but many states still require the buyer of a business to notify the seller#146;s creditors that the transaction is going on. Failure to get a list of the seller#146;s creditors and send #147;notices of sale#148; to them may give the seller#146;s creditors a shot at undoing (or #147;rescinding#148;) the transaction in order to prevent the seller#146;s assets from being sold out from under them. Even if the seller has no creditors at all (a rare occurrence), the state tax authority generally wants a copy of the #147;bulk sales notice#148; so it can determine if the seller owes any sales, use or other business taxes. If the seller does, he will have to pay them before the closing takes place.
Get an Indemnity from the Seller. Even if you and your advisors have torn apart the seller#146;s books and records, sometimes things get overlooked, and you find yourself getting sued because of something the seller did (or failed to do) before defend the lawsuit and pay all judgments and fees if that should happen. Likewise, you should be prepared to give the seller an indemnity if he gets sued because of something you do (or fail to do) after the closing takes place.
Make Sure the Seller Sticks Around for a While. In many retail and service businesses, the customers have a personal as well as business relationship with the owner. Make sure the seller sticks around for a couple of weeks after the closing to introduce you to customers, help you figure out the books, and #147;ensure a smooth and orderly transition of the business#148;. Consider paying the seller for his time so he has an incentive to stay off the golf course, at least until you are comfortable you know what you are doing.
Get to Know the Employees. Likewise, before you buy a business, make sure the #147;key employees#148; are willing to stick around, since they#146;re often the ones who see the customers day to day, operate all the tricky machinery, and know #147;where the bodies are buried#148;. Many sellers will be reluctant to let their employees know the business is up for sale, for fear they will quit en masse. In that case, put a provision in the sales contract as follows: #147;Seller and Buyer will announce the proposed sale to all employees of the Business within forty-eight hours before the Closing, and Buyer will be given a reasonable opportunity to meet with each employee individually before the closing date to determine, to Buyer#146;s reasonable satisfaction, the employee#146;s willingness to continue working for the Business.#148; Then add a provision allowing you to walk from the deal if you are not totally satisfied that the key employees will stay on board at least long enough for you to learn what they already know.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is #145;Small Business Survival Guide#146; (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:48:18Z
[Part 1 of 2]
Staff
http://www.DrLaura.com/b/Part-1-of-2
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- /9563.html
2010-05-07T08:48:16Z
2010-05-07T08:48:16Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Ten Things To Look Out For When Buying A Business
[Part 1 of 2]
Cliff Ennico
www.creators.com
#147;I#146;ve been working on and off with a local building contractor for 17 years. Last week he told me he#146;s thinking about selling his business, and asked if I would be interested in making an offer. I did, and he accepted. Now, what do I do?#148;
Well, first off, you should get a good business lawyer and accountant to help you with the paperwork, because even with a small business like this, there#146;s going to be a ton of it. Frankly, it sounds like you should have asked lots of questions before you made your offer, but it#146;s not too late since your deal with the seller is only a #147;handshake#148; at this point. Here are some things you should insist on before you close on the deal.
Buy the Assets, Not the Business. If the seller is a corporation or limited liability company (LLC), under no circumstances should you buy stock in his business. Instead, offer to buy the assets of the business, and form a separate company to act as the purchaser. Why? Two reasons. First, you get better tax treatment, since your #147;tax basis#148; in the assets will be the amount you paid for them, rather than the amount your seller paid for them long, long ago. Second, if he owes money to people, or is being sued by someone, you will not assume any of those liabilities if you buy the assets.
Ask About Sales Taxes and Payroll Taxes. In many states, even if you buy a business#146; assets, the state tax authority can come after you if they find out the seller owed sales, use, payroll and other business taxes. If the seller has employees (other than himself), ask if he was using a payroll service, and make sure he is current in his employment tax payments. Then, ask the state tax authority to issue a #147;clearance letter#148; saying the seller is current in his sales and use taxes on the closing date. This may take a while, but will save you tons of heartache down the road.
Who Deals with the Accounts Receivable? Chances are, some of the customer will owe the seller money on the closing date. Who will be responsible for collecting these overdue debts? There are only two ways to handle this: either you purchase the accounts receivable at closing (for a discount, to reflect the fact that some of these folks won#146;t pay up), or you let the seller collect them at his leisure. My vote is for you to buy the accounts receivable at closing #150; that way if the delinquent customer wants additional work done after the closing, you#146;re in a stronger bargaining position.
Can You Assume the Seller#146;s Lease? Is the seller leasing the premises where he conducts his business? If so, you should find out (1) how much time remains on the lease term, and (2) whether the landlord is willing to let you assume the seller#146;s lease #147;as is#148;, without an increase in rent. If the lease has only two years or less to run, you might want to spend the money now to negotiate a brand new lease with a five to 10 year term. Also, find out if the landlord is holding a security deposit (usually two month#146;s rent, but sometimes more) #150; your seller probably will want you to purchase his Security Deposit on top of the agreed-upon purchase price for the business assets. If the seller is including the Security Deposit in the purchase price, make sure that is spelled out in writing somewhere.
Are There Prepaid Expenses? Take Yellow Page advertising, for example. When you buy a Yellow Pages ad, you normally pay for a whole year in advance. Chances are your closing will take place sometime during the year, and the seller will want to be reimbursed for the portion of the year when you are running the business and benefiting from the Yellow Pages ad. Prepaid expenses (like the seller#146;s Security Deposit) are usually not included in the agreed-upon purchase price, but are tacked on at the closing. Ask the seller now for a list of #147;closing adjustments#148; #150; amounts the seller has prepaid that will have to be #147;pro rated#148; #150; so you can budget for them accordingly and there will be no nasty surprises at the closing.
More next week . . .
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is #145;Small Business Survival Guide#146; (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:48:16Z
Some Tough Questions From The Top Ebay Sellers
Staff
http://www.DrLaura.com/b/Some-Tough-Questions-From-The-Top-Ebay-Sellers
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2010-05-07T08:48:13Z
2010-05-07T08:48:13Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Some Tough Questions From The Top Ebay Sellers
Cliff Ennico
www.creators.com
Last week I had the privilege to attend the annual meeting of the Professional eBay Sellers Alliance, or PESA (
www.gopesa.org
), a non-profit trade association of top eBay merchants. These are the #147;Imperial Stormtroopers#148; of the eBay community, folks, and they do not ask easy questions. Here are some that came up during my presentation on #147;Business Taxes for eBay Sellers#148;:
#147;I sell out of my home in New York but I #145;drop ship#146; on eBay for several large out-of-state distributors. If I sell to a buyer located in the same state where one of these distributors is located, do I have to charge that state#146;s sales tax?#148;
When you #147;drop ship#148; for someone else, you are selling that person#146;s stuff, but the goods never leave that person#146;s warehouse. They ship the goods directly to the buyer once you#146;ve notified them you#146;ve made a sale. Technically, if the #147;drop shipper#148; is using its own address labels on the packages, and is accepting returns of damaged or defective items, then they, not you, are the real seller of the items, and should be charging sales tax to buyers living in any state where the #147;drop shipper#148; has manufacturing, warehouse or office facilities (not just the location you are dealing with). Ask if the #147;drop shipper#148; will use your address labels with your New York address, and let you accept returns for credit. If they won#146;t do that for you, then make sure your #147;drop shipper#148; agrees in writing to pay all sales taxes that may be due on sales you generate for them.
#147;I run an eBay consignment shop. Do I have to pay any sort of taxes on the items I take from people for sale on eBay?#148;
You should check with your local accountant, but in most states you will not have to pay sales or inventory taxes on goods you take on consignment. Also, they are not considered part of your #147;inventory#148; for income tax purposes, as you do not have legal title to them, so you shouldn#146;t have to pay income taxes on them either. If you sell something on consignment to a buyer in your state, however, you will have to charge the buyer sales tax and remit it to your state tax authority.
#147;I started selling on eBay part-time last year and made about $20,000. I expect to do slightly better this year. Do I have to pay estimated taxes on the income from my eBay business?#148;
Absolutely. If you make more than $400 in #147;self-employment income#148; in any calendar year, you must pay your income taxes in quarterly estimated installments. Welcome to the club.
#147;I buy all my packaging, such as boxes, labels and plastic peanuts, in large quantities, and I pay a fortune for them. Should I be charging my buyers sales tax on these items, since they are really being sold along with the goods themselves?#148;
No. Packaging materials are considered #147;supplies#148; for income tax purposes, not part of your inventory. If you buy them from a local supplier, you will have to pay sales taxes on them since you are #147;consuming#148; them in your business, not buying them for resale. If you buy them from an out-of-state supplier, you may have to pay #147;use tax#148; on these purchases. Many eBay sellers try to cover these costs by imposing a #147;handling fee#148; on each sale in addition to the shipping and other charges. The handling fee would cover the cost of any supplies you consume in fulfilling a buyer#146;s order, as well as your time in processing the order. But don#146;t be greedy #150; eBay buyers hate it if they think they#146;re being #147;gouged#148; on your shipping and handling charges.
#147;I am currently operating a Subchapter S corporation for my eBay business. My accountant is telling me I should convert to a C corporation, but hasn#146;t really explained why. Is this a good move for me taxwise?#148;
Generally, regular or C corporations can deduct a ton of stuff that Subchapter S corporations can#146;t. While C corporations are taxable entities, they usually (not always) pay tax at a lower rate than Subchapter S corporations, where everything is taxed at your personal tax rate. Ask your accountant to prepare a #147;pro forma#148; tax return for your corporation showing you what the tax savings would be if you had been a C corporation for all of the 2005 calendar year. If the tax savings are significant, it will be easy for you to convert to a C corporation. Just remember that if you convert to a C corporation, you will have to wait three years before you elect Subchapter S status again.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is #145;Small Business Survival Guide#146; (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:48:13Z
Organizing Your Home Office
Staff
http://www.DrLaura.com/b/Organizing-Your-Home-Office
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2010-05-07T08:48:11Z
2010-05-07T08:48:11Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Organizing Your Home Office
Jill Hart
CWAHM.com
It can be a real challenge as a work at home parent to maintain an organized home office. Many times, the office or desktop is the last of our worries as we strive to raise our children, support our spouses and run our home-based business. However, keeping up with the clutter and chaos of your office may be just what you need to get you in a working mindset and help you to be more efficient while working.
There a few simple things that you can do on a regular basis that will help to de-stress organizing process:
Address your home office/desktop chaos in blocks of time. You may need to set aside just a few hours, or you may need an entire day. Decide what will work for you and stick to it. If it#146;s not possible for you to set aside a block of time, consider using a headset while you are on the phone and be de-cluttering, too!
Have the necessities on hand: a trash can, pen, file folders, mail baskets and other organization items that will enable you to sort, throw out and find a place for each item. Envision your goal and purchase the supplies necessary to create that environment.
Clear the space you want to organize (the desk surface, one of the drawers, etc.). Then make a pile of all the paper. Begin to evaluate each piece of paper, sorting it by importance. Throw out as much as possible and find a place for each of the other items.
If you start to feel stressed, take a break. Make a goal of how far you#146;d like to get during the time you have available and set an incentive for yourself if you reach your goal. It#146;s always easier to complete a task when you know you#146;ll be rewarded.
Once you#146;ve organized your office, it#146;s important to take small steps everyday to keep the room clean and tidy. It#146;s very easy to fall back into the routine of piling things on your desktop and around the room. There are five simple tasks that you can do daily to help maintain your organized space:
Clean out your #147;Inbox#148;. In today#146;s world this can apply to postal mail or email. Create a special basket for postal mail that needs to be taken care of right away, and another for items that can wait a day or two.
To keep your email inbox under control, create folders within your email program. Keep what needs to be done immediately in your inbox and distributed the rest into your folders. You can also use "rules" to help separate email and make it easier to manage.
Make sure all notes are transferred to your calendar, palm pilot or day planner. It is very easy to pile up a desktop full of paper by writing every note on a Post-it. You can also create an #147;Idea Book#148; to catalog all of your business ideas for future reference.
Remove all mail, catalogs magazines from your desk. Put them in their proper place as you receive them. This will considerably cut down the amount of clutter on your desktop.
File as you go. This is the most basic and most important tip of all. If you file as you go your records will be in order, your desktop will be clear and you will feel like a professional.
Clean off your desktop each evening. There's nothing better than sitting down at a clean workspace each morning. It helps to keep your mind focused on your business and makes finding important documents a snap.
By following these easy guidelines you will have a clean and organized home office in no time. Having a clutter-free workspace is the first step in creating an organized and professional home-based business.
ABOUT THE AUTHOR:
Jill Hart is the author of the e-book, 2 Weeks Devotional Journey for Christian Work at Home Moms, and the founder and editor of Christian Work at Home Moms,
CWAHM.com
. This site is dedicated to providing work at home moms with opportunities to promote their businesses while at the same time providing them spiritual encouragement and articles. E-mail Jill at
jill@cwahm.com
for additional information or stop by her site at
CWAHM.com
. This article is free to reprint if the Author's Bio remains in tact. For additional articles, please contact Jill Hart. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:48:11Z
"Desperate Housewives" vs The Newsboys Of America
Staff
http://www.DrLaura.com/b/Desperate-Housewives-vs-The-Newsboys-Of-America
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2010-05-07T08:48:07Z
2010-05-07T08:48:07Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>"Desperate Housewives" vs The Newsboys Of America
Cliff Ennico
www.creators.com
We all have our guilty pleasures. Watching #147;Desperate Housewives#148; on Sunday evenings is one of mine.
Now, I realize that the show is not meant to reflect the real world. It#146;s a tongue-in-cheek satire of certain suburban lifestyles. But there was a scene in last week#146;s #147;Desperate Housewives#148; that caught my attention -- as a sign, if nothing else, of how those overpaid TV writers and producers in Hollywood view us poor, struggling entrepreneurs.
The scene in question was a confrontation between one of the #147;Desperate Housewives#148;, a sexy, somewhat ditzy single mother named Susan, and her newspaper delivery boy, a bratty kid named Danny. The voiceover at the beginning of the show says #147;all of the women on Wisteria Lane viewed Danny as the enemy . . . #147; Mainly because his aim when throwing the newspaper isn#146;t that good #150; he destroys people#146;s rose bushes, leaves newspapers in rain puddles, that sort of thing #150; and it doesn#146;t seem to bother him very much (Danny has no issues with self-esteem).
Danny confronts Susan over the fact that she hasn#146;t paid for her newspaper delivery in some time. Susan admits that she owes Danny money, and says she will pay Danny soon. But Danny refuses to take #147;no#148; for an answer, reminding Susan he has asked her to catch up on her payments several times before. When Susan apologizes again, Danny refuses to let go and starts berating Susan, saying things like #147;listen, lady, I#146;m providing a service here . . . I don#146;t work for nothing#148;. I should mention at this point that all the neighbors are in their front yards watching Susan and Danny argue. Finally, Danny breaks off the conversation by riding off on his bicycle, calling Susan a #147;deadbeat#148; over his shoulder in a voice loud enough for the entire neighborhood to hear.
Susan#146;s response? She hurls her newspaper after the fleeing Danny. The camera follows the newspaper in slow-motion (Susan#146;s aim with the newspaper is far better than Danny#146;s ever was), as it flies through the air, end over end, and lands in the spokes of Danny#146;s bicycle wheel, bringing it to a sudden stop, flinging Danny face-first onto the pavement in the middle of the street, and knocking him out cold.
And what do Susan#146;s neighbors think of that? Far from being horrified by what any civilized legal system would call a #147;criminal assault on a minor,#148; they all smile and give Susan an enthusiastic #147;thumbs up.#148;
Now, it#146;s silly to get hung up on something you see on TV, especially a show like #147;Desperate Housewives#148; that is supposed to push the envelope. Clearly, if Danny were a nicer kid and provided better service, we (and the neighbors) would side with him against Susan. But there are two sides to every argument, and I think Danny#146;s got one heck of a case here. Let#146;s forget how obnoxious Danny is, and review the facts:
Susan admits she owes Danny money for his services, and has ignored repeated demands for payment, yet Danny does not cut off her service as he clearly is entitled to do;
Susan is herself self-employed (she works out of her home doing illustrations for children#146;s books), and should know what it feels like to have to wait to get paid;
Danny is obviously frustrated that his efforts to collect from Susan haven#146;t succeeded, and probably feels that resorting to #147;hardball tactics#148; is the only way to get through Susan#146;s thick head and make her cough up the money he is rightfully owed;
Sure, Danny#146;s service is not great, and his attitude doesn#146;t help matters, but he#146;s only engaging in effective #147;time management#148; -- it doesn#146;t make economic sense for him to spend three hours or more every day (cutting into homework and soccer practice) walking each newspaper up to the front door of every house when he#146;s only netting $20 or $30 a week from his paper route (if that sounds harsh, ask yourself #150; would you provide that level of service for $1 to $2 an hour?);
Even if Susan is right to withhold payment because of Danny#146;s poor service, Danny doesn#146;t deserve to be assaulted physically for what was after all only mild verbal abuse on his part #150; he is, after all, only a kid.
So what message do we take away from the Susan-Danny episode? Answer: that it#146;s okay, even commendable, to blow off your creditors and occasionally resort to physical violence when they demand payment, as long as they#146;re not cute, cuddly, and 100% politically correct in the way they do business.
Let#146;s hope the people that owe you money don#146;t watch #147;Desperate Housewives#148;.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. His latest book is #145;Small Business Survival Guide#146; (Adams Media, $12.95). This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:48:07Z
When Sales Taxes Blow Across State Lines, Small Businesses Shiver
Staff
http://www.DrLaura.com/b/When-Sales-Taxes-Blow-Across-State-Lines,-Small-Businesses-Shiver
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2010-05-07T08:48:05Z
2010-05-07T08:48:05Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>When Sales Taxes Blow Across State Lines, Small Businesses Shiver
Cliff Ennico
www.creators.com
#147;I buy a lot of stuff on the Internet for my business. Recently I bought something in an online auction, and when the seller sent me his invoice, he added my state#146;s sales tax to my winning bid. I thought this was odd, because the seller is located in another state, and I didn#146;t think you had to charge sales tax on interstate sales. Is there something going on here I should know about?#148;
Generally, when you are selling stuff (online or otherwise), you charge sales tax only when the buyer is located in the same state as you. Under current law (which may be changing soon #150; see below), you are not supposed to charge sales tax on sales to buyers who live in other states.
There are two exceptions, though, and your seller probably fell into one of them.
First, if the seller has an office, warehouse, distribution facility or retail location in your state, the seller may have to charge you sales tax because he is legally #147;doing business#148; in your state. This is why, when you buy something from a mail order catalogue, the invoice form sometimes says #147;residents of States A, B and C, please add sales tax to the total#148;. The mail order company has its retail or warehouse outlets in States A, B and C, and is required to collect sales tax from buyers located in each of those states, regardless of the actual location your order is shipping from.
Second, a growing number of states are entering into #147;compacts#148;, or agreements, encouraging in-state sellers to collect sales tax from buyers in neighboring states. New York and Connecticut have such an arrangement (
www.tax.state.ny.us/pdf/memos/sales/m88_12s.pdf
), while eight Midwestern states have banded together to create the Midwest Border Tax Compact (
www.ksrevenue.org/pdf/forms/edu126.pdf
). The idea is that by charging your buyer state sales tax, you are helping the buyer avoid liability for #147;use taxes#148; on stuff they buy from out-of-state vendors (in just about every state, the sales tax and use tax are the same rates, and are calculated the same way). How thoughtful of them!
If you live in a state that has a reciprocal sales tax agreement with another state, you are required to collect the other state#146;s sales tax, pay it to your state#146;s Department of Revenue (with a special tax return form), and then hope and pray they remit the tax to the other state government (of course they will, won#146;t they?).
So why haven#146;t you heard about this before? Up until recently, most states that have sales tax agreements with other states haven#146;t been too aggressive about enforcing them. Why, you ask? Now, I#146;m not a politician, but I suspect it#146;s hard to convince voters their tax dollars should be spent to help another state collect its revenue. There are also a couple of U.S. Supreme Court rulings that prohibit states from imposing sales taxes on interstate commerce, whether directly or indirectly, and no state official wants to be accused of violating federal law. But the law may be changing soon.
Every couple of years, a bill is introduced in Congress which would permit states to levy taxes on sales made over the Internet, among other things. A majority of states have signed onto the Streamlined Sales Tax Project or SSTP (
www.streamlinedsalestax.org
) #150; basically a national #147;reciprocal tax agreement#148; -- and are awaiting the #147;green light#148; by Congress to put the SSTP into effect. The bill is being reintroduced in Congress this fall, and stands a better than average chance of passage this time around.
If the SSTP passes Congress, then Internet sellers of all kinds (including people putting stuff up for sale on eBay and other Internet auction sites) will have to charge state and local sales taxes at the rates in effect wherever their buyers are located. With over 7,500 sales tax jurisdictions in the United States, complying with SSTP will impose a crippling paperwork burden on many small e-businesses that can#146;t afford to hire teams of people or buy expensive software packages to help them comply.
A number of e-commerce companies and grassroots organizations are lining up to fight SSTP. For example, eBay#146;s Government Relations department has set up a special Website at
www.ebaymainstreet.com
, where you can sign up for e-mailings notifying you of the bill#146;s progress. You can also sign up to receive #147;form letters#148; you can send by e-mail to your elected officials to let them know the impact SSTP will have on you.
Of course, your seller may simply have been mistaken in charging you sales tax. Call him and find out. Also, if the stuff you bought from him is inventory you are planning to resell, you shouldn#146;t be charged sales tax #150; give your seller a #147;resale certificate#148; and he almost certainly will back off.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:48:05Z
Five "Uneasy Questions" For This Family Business
Staff
http://www.DrLaura.com/b/Five-Uneasy-Questions-For-This-Family-Business
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2010-05-07T08:48:02Z
2010-05-07T08:48:02Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Five "Uneasy Questions" For This Family Business
Cliff Ennico
www.creators.com
#147;My husband, myself, and our two sons recently bought a small business. My mother and father used their house and other collateral to guarantee the bank loans we took out to purchase the business. Our two sons are operating the business. We are a corporation. My mother and father each have 26 shares (52 total), and our two sons have 24 each (48 total). Did we put this together the right way? How do we structure this business so that everyone#146;s happy?#148;
A situation like this leaves me with more questions than answers, I#146;m afraid.
Question Number One: do you and your husband have any stake whatsoever in this business? If you two took out a bank loan to finance the purchase of the business, and your Mom and Dad guaranteed the loan (since they appear to have the deep pockets in your family), you and your husband should have received shares in the business, since everything you own is probably collateral for the loan along with everything your parents own.
What probably happened here is that your corporation borrowed the money directly from the bank, and your parents guaranteed the corporation#146;s loan in exchange for their stock in the corporation, so you and your husband did not get involved at all. That leaves us with a situation in which 52% of the company stock is owned by your parents, and 48% by your two sons. Under most state corporation laws, if your parents and your children ever disagree on how the business should be run, your parents (with 52% of the stock) would probably win the argument. But if your sons ever get frustrated and quit the business, that would leave your parents #147;holding the bag#148; #150; they would have to find someone else to run the business and preserve their investment so they can pay off the bank loan. Not a good thing.
Question Number Two: who sits on your company#146;s board of directors? Since your Mom and Dad put up the bulk of the money to make this business happen, and since your two sons are the ones actually running the business, I would suggest a five (5) person board, structured as follows: your Mom, your Dad, your two sons, and either you or your husband as the fifth board member. That way if your parents and your sons ever disagree on the proper way to run the business, you and your husband can #147;run interference#148; and help solve the problem without creating too much acrimony within the family.
Question Number Three: when your parents guaranteed the bank loan to buy this business, did your parents treat the guaranty as a #147;loan#148; to the corporation, or as their contribution to the corporation#146;s capital? I#146;m hoping that at least some of the guaranty was #147;loaned#148; to the corporation #150; that way, the corporation will have to repay them on a schedule, with interest, before your sons can take anything out of the corporation as their compensation. If your parents treated their guaranty as an #147;investment#148; in the corporation#146;s stock, they will be forced to accept whatever the corporation#146;s Board of Directors decides to pay them in dividends #150; if they don#146;t control the Board, they won#146;t see a return on their investment for a long, long time (see Question Number Two).
Question Number Four: how much do your two sons take out in compensation each year? It sounds like your sons are the only two officers of the corporation. If I#146;m right about that, the corporation should enter into Employment Agreements with each of your two sons, spelling out their responsibilities to the company and saying exactly how much they can take out in salaries, bonuses, etc. each year before the shareholders can divvy up whatever#146;s left over.
Question Number Five: have your parents and your two sons signed a Buy-Sell Agreement? This is an agreement that prohibits any shareholder from selling out to a stranger (somebody not in the family) without giving the other family members the right to buy his or her shares first. Without such an agreement, either of your sons could sell their shares to a total stranger, who then would have the right to help run the business and make your parents#146; lives miserable. Again, not a good thing.
You need to talk to a lawyer #150; right now #150; and put these arrangements in place.
And while you#146;re at it, ask the lawyer about forming a Family Limited Liability Company (FLLC) for this business. I assume your parents are #147;getting on in years#148;. If they both die within a short time period, their estate will have to pay federal and state death taxes on the full fair market value of their shares in your family corporation. Your family may be forced to sell the business in order to raise the cash necessary to pay the death taxes (I hate to be cynical, but that may be why the previous owners sold out to you in the first place). A FLLC will enable your parents to transfer a portion of their shares to you or your children each year while they#146;re alive, so that when your parents ultimately do die, they will hold only a minority of the shares, which should reduce the death tax burden considerably.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:48:02Z
Tips For Making Your Home Or Small Business Stand Out In Your Competitive 'Crowd!!'
Staff
http://www.DrLaura.com/b/Tips-For-Making-Your-Home-Or-Small-Business-Stand-Out-In-Your-Competitive-Crowd!!
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2010-05-07T08:48:00Z
2010-05-07T08:48:00Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Tips For Making Your Home Or Small Business Stand Out In Your Competitive 'Crowd!!'
by
copy; 2005 Priscilla Y. Huff
While attending a women#146;s entrepreneur conference, I met an attractive young woman who was wearing a colorful red and black striped blazer that definitely caught my attention as compared to what most of the other women wear wearing in the meeting room#151;professional suits in assorted muted colors of blacks, browns and grays. When I commented on its attractiveness, she told me it had been her father#146;s who started the awning manufacturing business that she and her brother now co-owned and operated. "Feel it," she said as she encouraged me to touch the sleeve of her blazer. "It#146;s made out of the same canvas material that my father first used when he started this business in 1928."
Her unique blazer and follow-up comment caught my attention and then piqued my curiosity to learn more about her family#146;s business. In addition, to our conversation, she handed out her business card along with a photocopy of an article in a regional business journal that had featured their company..
Now, this anecdote does not suggest you should go out and purchase a brightly colored and plaid blazer to bring attention to your business, but you can take note of some of this woman#146;s promotional techniques and apply them to your own marketing strategies:
Catch your potential customers#146; attention. Try to have something visible that is related to your business that will be a conversation-starter. A successful author I know had her new book#146;s cover painted on her van along with the toll-free ordering number when she launched a book tour that took her to a number of big cities.
Once you get people#146;s attention, be ready with a business card AND other promotional materials that people can carry with them. I heard the suggestion that you should not hand out only one business card at a time, but rather two or three at a time to a person so your card can be passed on to even more potential customers.
Encourage conversation so you can determine how
your
business#146; services and/or products might solve a potential customer#146;s problem. Generally, people do not seek out a new service or product unless they have a need that must be met. The more you know about another person, the more you will be able to suggest a solution that (hopefully) your business can offer. And if your business cannot help them, then freely suggest the name of another business owner who can. That business owner who obtains paying clients from your referrals may very well return that favor down the line.
Look for networking opportunities with other business owners. Attending an industry or entrepreneurial conference or local business card exchange can be a great way to meet other entrepreneurs to share tips, information and of course, referrals and possibly partner with them on future projects.
Look for free opportunities to meet potential customers. One New Year#146;s Eve my husband and I went to our local video rental store where I noticed a man wearing a baseball cap with lights on it flashing "Happy 2000!." When questioned, the man explained his business creates custom-made clothing with blinking-light designs for companies, clubs, and organizations. He followed-up our conversation by handing me his business card along with his company#146;s brochure that featured his flashing products and ordering information.
Now, what can
you
do to make your business stand-out from your competitors to make a good first and
memorable
impression so that people will come to your company instead of your competitors because they cannot forget you?!
Suggested Marketing Resources:
Brag Your Way to Success
by Rochelle Be. Balch
www.rbbalch.com
; great little guide book with marketing and success tips.
Uncommon Marketing Techniques
by Jeffrey Dobkin, marketing expert
www.dobkin.com
.
101 Ways to Promote Yourself
by Raleigh Pinskey, "Viz-Ability Marketing consultant and speaker"
www.promoteyourself.com
.
-30-Priscilla Y. Huff is the author of
101 Best Home-Based Businesses for Women
, 3rd ed., and
The Self-Employed Women#146;s Guide to Launching a Home-Based Business
. She offers a free listing of resources for women entrepreneurs and welcomes business-related questions and comments. Send them to
BestBiz4Me@earthlink.net
.
Permission granted by author for use on www.DrLaura.com.
Staff
2010-05-07T08:48:00Z
Breaking Up Is Hard To Do... Without An Agreement
Staff
http://www.DrLaura.com/b/Breaking-Up-Is-Hard-To-Do...-Without-An-Agreement
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2010-05-07T08:47:57Z
2010-05-07T08:47:57Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Breaking Up Is Hard To Do... Without An Agreement
Cliff Ennico
www.creators.com
#147;I am the 80% owner of a limited liability company (LLC) that runs an Internet marketing and Website design firm. I basically do all of the work; my 20% partner only functions as a secretary or administrative assistant. We recently mutually agreed that we should go our separate ways. I have five questions about the breakup.#148;
Before we answer them, I have to ask: why, oh why, did you give your secretary 20% of your company? As I#146;ve said before in this column, you should never, EVER give a #147;piece of the pie#148; to someone unless they have something unique and significant to contribute to your business success. While not unimportant, #147;admin people#148; should be put on salary, paid a fair wage with benefits when you can afford them, and given a W-2 at the end of the year. Yes, it hurts to use your precious cash to pay their salary and payroll taxes, but it#146;s cheaper in the long run than making them partner, because even a small percentage ownership gets really expensive once your business takes off and becomes successful, as yours clearly has. Would you pay a part-time secretary $200,000 a year? Well, that#146;s what 20% of a service business is worth once it makes $1 million a year. Not bad for 10 hours of typing a week!
Okay, now that I#146;ve got that off my chest, let#146;s turn to the five questions:
#147;My partner mentioned that she wants to keep our company logo and Web address (URL). Who owns these?#148; Your LLC owns all assets of the business, including any #147;intellectual property#148; such as a logo, company name or Website. Under no circumstances should your partner get ANY of your LLC#146;s intellectual property if you are going to continue the business. As a condition to your buying her 20% interest, you should get your partner to agree (a) to assign to the LLC all of her #147;right, title and interest#148; to any property she may have developed for your LLC, (b) to keep all of your trade secrets confidential, (c) not to solicit your customers or otherwise unfairly compete with you after she leaves, and (d) not to disparage or #147;bad mouth#148; your business to others.
#147;With 80% of the LLC ownership, can I just #145;fire#146; her and continue running the LLC business myself?#148; Yes, but unless you buy her out she will remain a 20% owner of the business, and will be legally entitled to 20% of your profits at the end of each year, even though she didn#146;t lift a finger to help you. Not a good idea.
#147;Should I just dissolve the LLC altogether and just start a new business?#148; With 80% ownership of the LLC, you probably could do that legally, but then you would have to figure out which 20% of the LLC#146;s assets your partner is entitled to when the LLC is liquidated. That could get sticky.
#147;How do I value the business? We each put $1,200 into the business, there#146;s $3,000 in the LLC checking account, and about $4,000 in accounts receivable.#148; I would keep this very simple, since you#146;re too small to have a professional valuation done. Find out what your partner took out of the business in cash distributions last year, and offer her twice that amount. If that comes to less than $1,400 (20% of $7,000), offer her $1,400. If you can#146;t afford to pay a lump sum, offer to pay in monthly installments over the next year at 6% annual simple interest (0.5% per month).
#147;What do I do about new projects? Can I do these on the side, or form a new LLC?#148; Unless there is a noncompete clause built into your LLC Operating Agreement, there is nothing to prevent either of you from doing things #147;on the side#148;, with or without the other#146;s knowledge. If you form a new LLC and start running a #147;parallel business#148;, though, your partner might sue you for improperly diverting assets and business from your old LLC or illegally #147;freezing her out#148;. Talk to your lawyer before taking a drastic step like that. I would strongly prefer that you buy her 20% interest, even if you have to pay more than it#146;s worth. You will sleep better at night.
Lesson: once you make someone your business partner, there is only one way you can get rid of them legally, and that is to buy them out for a price the two of you can agree on. Before making ANYONE a partner, make sure you get an agreement (called a #147;buy-sell agreement#148;) from them spelling out precisely how much they will be entitled to receive for their ownership interest if you decide they are no longer adding value. A good attorney can draft one of these for you for under $1,000.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:47:57Z
If You're In Business And You Know It, Clap Your Hands...
Staff
http://www.DrLaura.com/b/If-Youre-In-Business-And-You-Know-It,-Clap-Your-Hands...
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2010-05-07T08:47:55Z
2010-05-07T08:47:55Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>If You're In Business And You Know It, Clap Your Hands...
Cliff Ennico
www.creators.com
#147;Earlier this year I started selling stuff on eBay, mainly to clean out my attic. I ran out of attic stuff a while back, so I#146;ve started selling stuff for some of my friends and relatives. So far I#146;ve made about $50,000 after expenses and splitting the proceeds with the people who give me stuff to sell. I don#146;t really look at this as a business, but I#146;m being told that I have to pay taxes on what I#146;m making. Is that right?#148;
Let me get this straight . . . you#146;ve made $50,000 in 8 months and you#146;re not sure if you have a business? ARE YOU KIDDING????
A lot of people are surprised to find out that their cherished hobbies have somehow #147;morphed#148; into real businesses overnight without their knowledge. Your good-faith belief that what you are doing is #147;only a hobby#148; doesn#146;t count for much when it comes to the Internal Revenue Service and your state and local tax authorities. Under current law, if you are making even as much as One Dollar doing ANYTHING, the tax authorities will view you as being self-employed, you will have to report your earnings as income, and you will have to pay taxes on that income (if you are losing money, that#146;s a different story).
You need to talk to an accountant right away to determine your total tax liability, but based on your e-mail, I#146;m pretty sure that:
you will have to pay federal, state and local income taxes on the full $50,000 in earnings from your business on eBay;
you will have to pay #147;self-employment tax#148; (roughly 15.3%) on everything you#146;ve earned from eBay sales over $400;
you will have to pay these income and self-employment taxes in quarterly #147;estimated#148; installments on April 15, June 15, September 15 and January 15 of each year; and
if you have received more than $600 in fees from any one of your friends and relatives this year, he or she may have to send you a Form 1099 next January.
But that#146;s not all. It sounds from your e-mail that you are taking consignments of stuff to sell on eBay. A growing number of states (mostly in the Midwest) are requiring eBay consignment sellers to obtain #147;auctioneer licenses#148;. If you live in one of these states, you will have to pay a fee ranging from $200 to $500, and will also have to take an evening course in #147;auction practices#148; at your local community college, before you can get the license.
Since it sounds like you have started a business, whether you knew it or not, and will have to pay taxes on your income, whether you like it or not, why not go the extra mile and set it up as a legal retail business? That way you can deduct your business expenses (most of them anyway), as well as certain of your household expenses if you claim the #147;home office deduction#148;. The steps involved are quite simple for a business like yours:
you will have to obtain a federal Tax Identification Number (or EIN) from the IRS (go to
www.irs.gov
and download Form SS-4, the application for a tax ID number);
you will have to register for your state#146;s sales, use and other business taxes #150; your accountant can help you with the necessary paperwork;
if you have a cute name for your business, you probably will have to file a #147;trade name certificate#148; with your county clerk#146;s or town clerk#146;s office; and
you will have to file Schedule C (#147;income or loss from a trade or business#148;) with your Form 1040 each year.
Welcome to the wonderful world of self-employment! You have already passed the most difficult hurdle any new business faces #150; you are actually making money! The only businesses that are tax-free (other than charities) are businesses that don#146;t make money. So set yourself up right, keep up the good work, and may you always regard your business as a #147;hobby#148; that#146;s both fun and profitable.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:47:55Z
Is It Possible To Work From Home?
Staff
http://www.DrLaura.com/b/Is-It-Possible-To-Work-From-Home
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2010-05-07T08:47:52Z
2010-05-07T08:47:52Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Is It Possible To Work From Home?
By Jill Hart
www.cwahm.com
Have you ever wished that you could work from home? According to the Bureau of Labor Statistics, over 19 million people worked from home (either part-time or full-time) in 2001. It#146;s a growing trend in our society with the number steadily rising as many people are leaving the workplace in favor of a work-at-home career.
There are four main ways to make working from home possible:
Telecommute for your current employer #150; Many employers are beginning to see the benefits of allowing their employees to work from home. If you have a job that would be possible to do from home ask your employer to consider it. More and more employers are allowing employees to telecommute. This is an easy way to work from home while maintaining the security of a stable career. You must realize, though, that working from home may limit you in terms of advancing in your company. It#146;s important to think through the sacrifices that you may need to make in your situation to work from home.
Telecommute as an independent contractor #150; There are many companies that hire independent contractors to do work such as data entry, transcription and customer service from home. This can be an incredible opportunity as long as you#146;re willing to keep track of your own taxes and aren#146;t relying on the employer for insurance and other perks
There are many benefits to the company also, such as lower wages, not needing to provide insurance, or being able to offer a commission based position. The company may also choose to hire home workers so that they do not need to pay for space to house an office full of employees.
Own a direct sales/MLM home-based business #150; Many times these types of home-based businesses are overlooked, but they truly can bring an income and allow you to work from home. However, doing your research before joining a company is very important. Look for representatives of the company to speak with and, if possible, try to find someone who has been a representative for the company, but is no longer. They may be able to share some of the negative aspects of the business with you.
Also check with the Better Business Bureau and make sure that the company that you are considering has a good reputation. You can also go to websites such as
cwahm.com
and sign up to speak with current work at home moms (
cwahd.com
for dads) who can answer your questions about owning a home-based direct sales/MLM business.
Begin your own home-based business #150; It can seem overwhelming to start your own business, but if you start small and have a good business plan it can be a very rewarding decision. You are able to be your own boss, have a very flexible schedule and work only when it is convenient for you.
When considering beginning your own business, make sure that you have found a niche that will allow you to serve customers that no one else is serving. When I began searching for a way to work from home, I spent time researching the different work at home websites available and realized that there was not a place for Christians to network and help one another work from home. I filled this niche with my website,
cwahm.com
, and the response has been amazing. If you take your time and find a niche or unique product, you will have a much higher chance at success.
If you decide to begin your own business, you must also check your state and city about zoning laws, licensure requirements, etc. Contact an accountant to find out what percentage of sales you need to set aside for taxes as well as whether or not you#146;ll need to make quarterly tax payments.
Working from home is a big commitment and it can take some time to get started. It#146;s important to take the time to research what type of at-home position will work best for you. If you would like to telecommute, speak with your employer to see if it is a possibility. If you are looking into a home-based business, speak with others from the company or find a niche that you can fill with your own business. Working from home can be a rewarding choice and it IS possible.
ABOUT THE AUTHOR:
Jill Hart is the founder and editor of Christian Work at Home Moms, CWAHM.com, and the author of the e-book, The Two Week Devotional Journey for Christian Work at Home Moms. The CWAHM.com website is dedicated to providing moms with free resources to aid them in their work at home search. The site also provides current work at home moms with opportunities to promote their businesses while at the same time providing them spiritual encouragement and articles. E-mail Jill at
jill@cwahm.com
for additional information or stop by her site at
cwahm.com
. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:47:52Z
Slamming The Gate On Internet Commerce
Staff
http://www.DrLaura.com/b/Slamming-The-Gate-On-Internet-Commerce
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2010-05-07T08:47:49Z
2010-05-07T08:47:49Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Slamming The Gate On Internet Commerce
Cliff Ennico
www.creators.com
"A number of 'gated communities' in my area are making new rules that prohibit people from buying and selling stuff on eBay out of their homes. Their argument is that there are too many UPS trucks going in and out of the development each day picking up the eBay parcels. Is it legal for them to do that?"
While it sounds like these communities are going about it in a very heavy-handed way, the short answer is #147;yes#148;. It is perfectly legal for a gated community, condominium association, or residential subdivision to ban residents from engaging in commercial activities within its boundaries.
And it#146;s not just #147;gated communities#148; that can do this. Prepare for a shock: every business that operates out of someone#146;s home is, technically, an illegal business.
Now, you#146;re probably saying to yourself, #147;Wait a minute! There are at least five people on my block working from their homes. The IRS allows you to take a deduction if you operate a home-based business. How can you say they#146;re illegal?#148;
They#146;re illegal because just about every city and town in the United States has adopted a zoning ordinance, dividing the community into residential, commercial, and other #147;zones#148;. Unless you live in a progressive community that allows #147;mixed use#148; zones, virtually every zoning ordinance prohibits the operation of a commercial business (with a few time-honored exceptions such as family dentists and visiting nurses) in a zone designated as #147;residential#148;.
So why are so many people working out of their homes without getting into legal trouble? The answer has to do not with the law, but with its enforcement.
Every community with a zoning ordinance has established a #147;Planning Board#148; or #147;Zoning Board#148; that oversees the zoning law, grants exceptions (called #147;variances#148;) from the ordinance and so forth. But I#146;m not aware of a single community that has adopted a special police force to make 100% sure people aren#146;t doing businesses out of their homes. You#146;ve never had any government official knocking on your front door asking you if you#146;re operating an illegal business, have you?
As a practical matter, if you#146;re operating a business out of your home, you usually won#146;t get into hot water with your local zoning authorities unless . . . your neighbors turn you in. When will your neighbors turn you in? When you are conducting your business in such a way that you are #147;changing the residential character of your neighborhood#148;. The local kids can#146;t play stickball in the street because they#146;re too busy dodging the UPS trucks going to and from your home office. The neighbors are being kept awake all night because of the loud noises or foul odors emanating from your basement. You get the idea.
What the #147;gated communities#148; are objecting to is not the operation of a home-based business per se, but rather the increased vehicle and truck traffic that that business is generating. The courts will probably back them up.
So how can you operate an eBay, e-commerce or mail order business out of your home without getting into legal trouble?
Simple. First, find out if there#146;s a UPS Store, Mailbox IT, Navis Pack #145;n Ship, or other franchise in your area offering #147;private mailbox service#148; #150; there almost certainly will be one. These franchises will provide you with a #147;private mailbox#148; #150; essentially a Post Office Box that has an actual street address (such as #147;123 Main Street, # 456#148;). Next, if you expect to have lots of inventory (more than a few items at a time), find the nearest #147;self-storage facility#148; (you can find the ones nearest you at
www.selfstorage.org
) and rent some storage space for your inventory. Because the mailbox outlet and storage facility are both located within your community#146;s #147;commercial zone#148;, they do not violate your local zoning ordinance. Therefore, your business won#146;t, either.
Sign your business up for a private mailbox (the average rental is around $300 per year), and use your mailbox address as your ONLY mailing address for all shipments and correspondence #150; your suppliers and customers should see only this address. Keep your inventory at the storage facility, and make sure all incoming shipments are dropped off there (or pick them up at the mailbox outlet and bring them to the storage facility). Use your home only as the #147;executive office#148; where you post your eBay auctions, keep your business records, and pack your boxes (most mailbox franchises will do that for you as well, for a fee).
Then, once or twice a day (no more than that, please, especially if you live in a gated or other #145;closed#146; community), visit your storage facility, fill your car with your outgoing shipments, drive them down to your #147;private mailbox#148; address, and have the Postal Service, UPS or FedEx pick them up there.
One last thing: don#146;t tell the neighbors what you#146;re up to. Every neighborhood has a Gladys Kravitz (for you #147;Bewitched#148; fans) or a Martha Huber (#147;Desperate Housewives#148;) that just can#146;t keep their noses out of your affairs. If your business is not too visible and isn#146;t interfering with their lives, most neighbors will adopt a #147;don#146;t ask, don#146;t tell#148; policy. After all, they probably don#146;t want you finding out about THEIR home-based business . . . at least, until you bump into them at the #147;private mailbox#148; outlet.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:47:49Z
Placing The Right Value On A Small Business
Staff
http://www.DrLaura.com/b/Placing-The-Right-Value-On-A-Small-Business
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2010-05-07T08:47:46Z
2010-05-07T08:47:46Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Placing The Right Value On A Small Business
Cliff Ennico
www.creators.com
#147;I am thinking about buying a specialty food store that has been operating in town for 30 years. The owner is willing to sell, and has provided me with copies of his financial statements and tax returns for the past few years, but has asked me to make him an offer. How can I figure out a fair price for a business like this?#148;
There#146;s a science to putting a fair value on a small business, but you can also come up with a reasonable estimate on your own, according to business valuation expert Roger Winsby of Axiom Valuation Services in Wakefield, Massachusetts (
www.axiomvaluation.com
) and co-author of #147;What Every Business Owner Should Know About Valuing Their Business#148; (McGraw-Hill, $21.95). The first thing, Winsby advises, is to base the value on the future potential of the business, not its past performance: #147;the history is context, but you#146;re buying the assets of the business so you can hopefully get a better return than the current owner.#148;
For a business like this one, Winsby says, estimating a value is a five-part process:
first, you look at the financial statements and tax returns and determine how much profit the business is making each year before interest expense, and income taxes; be sure to adjust for #147;reasonable#148; compensation that the owner is taking out of the business (i.e., add back to profits if the owner takes a salary that is more than you would need to pay an experienced person to manage the business day-to-day; or vice versa --accountants call this #147;earnings before interest and income taxes#148; or EBIT;
second, take the company#146;s EBIT for the last two to five years, add them up, and divide by the number of years (in other words, calculate the #147;average#148; EBIT); subtract from the average EBIT the expected income taxes (safe assumption is 40% of average EBIT); and then add the average depreciation expense; accountants call this #147;average free cash flow#148;.
third, take the average free cash flow and divide it by your #147;discount rate #148; #150; Winsby says this should be somewhere between 18% and 35% depending upon the type of business and how stable it is (for example, you would insist on a high return rate for an Internet consulting business that could shut down tomorrow, and a low return rate for a grocery store in business for 40 years with a stable clientele) #150; you now have a possible #147;purchase price assuming no future growth in free cash flows; to estimate the value if you think the business could increase profits by 3% per year, then adjust the required rate of return by subtracting 3% from your original estimate of the required rate of return (18% - 3% = 15%); this will give you a reasonable range of values.
fourth, divide your purchase price by the business#146; current sales #150; the resulting ratio is called a Price to Sales multiple; and
fifth, compare that #147;multiple#148; to those of other similar businesses that have sold in the past year (for $17.50, a standard reference work, #147;Small Business Valuation Formula Multiples#148;, with a range of multiples for over 170 different small businesses based on recent sales figures, can be downloaded as an Adobe Acrobat file from
http://valuationresources.com/Misc/ValuationMultiples.htm
).
But be careful -- Winsby warns against simply using an average multiple from any source and then applying them to a particular business. #147;These figures are based upon statistical averages,#148; Winsby explains. #147;When you plot out the actual transactions from which the averages are derived, they are all over the map. Don#146;t ever assume that the business you are looking to buy is an #145;average#146; business #150; it may be at the high or the low end of the range depending upon a number of factors.#148;
Customer attrition, for example. A solo law practice can be expected to have a high rate of attrition after it is sold, because many clients have a high degree of personal loyalty to the seller and will #147;go elsewhere#148; when the practice is sold. Such a practice should command a low multiple, unless the seller is willing to spend a long period of time #147;transitioning#148; the business to the new owner. A specialty food store that#146;s been in town for 30 years, on the other hand, can be expected to have a low rate of attrition after it is sold, because most customers have accustomed themselves to visiting the store regularly and will not change their habits just because there#146;s a new owner. Such a business should command a relatively high multiple . . . unless a major competitor is planning to open across the street in a few months!
What if you really don#146;t want to do the valuation yourself? While many accountants will value a business for you, Winsby advises that you approach someone who specializes in valuations to get the best deals. A #147;certified valuation#148; (one that would be acceptable to the IRS or a court of law), Winsby says, will cost between $5,000 and $10,000, but for about $2,000 to $3,000 you can get an #147;estimated valuation#148; or a #147;robust estimate#148;, which should be acceptable to most sellers, SBA lenders, and private investors.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:47:46Z
Summer Sanity for Moms Juggling a Home-Based Career
Staff
http://www.DrLaura.com/b/Summer-Sanity-for-Moms-Juggling-a-Home-Based-Career
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2010-05-07T08:47:43Z
2010-05-07T08:47:43Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Summer Sanity for Moms Juggling a Home-Based Career
by Lesley Spencer, MSc; Founder President HBWM.com Inc.
http://www.HomeBasedWorkingMoms.com
The relaxed pace of summer is peeking just around the corner. And it is definitely welcome to many of us, but the challenge and sometime stressful moments of balancing motherhood and work is not always so welcome.
Like much of motherhood, being flexible is key and planning in advance is a necessity. To help you make this summer the best it can be with as little stress as possible, here are some tips for balancing your many roles during the summer:
If you don#146;t have a laptop, now is a great time to consider getting one especially with wireless Internet connection. You can work just about anywhere with your laptop and wireless connection. That means portability to work in any room in your home as well as work at locations in public with wireless connection #150; coffee shops, public parks, airports, shopping areas, skating rinks and more.
Take convenience a step higher and make your laptop your desktop computer by using a docking station. A docking station allows you to still use your monitor and keyboard like a desktop without the hassle of using two computer and transferring files and emails back and forth. Laptop prices have dropped dramatically and some laptops are as low as $500 while docking stations start around $60. Now may be the time to make your business work around your busy life more than ever.
If you know your workload is going to be overwhelming, start planning now what you can delegate. Perhaps, its time to hire a Virtual Assistant to help you in your business. There are many talented, capable VAs who can do anything from word processing to data entry, to answering calls to respond to email to much more. You can search for them and other talented home-based moms in a variety of professions at: www.HBWM.com/memberdir.
Technology is a great thing. Look into what you can automate in your business. Perhaps you can set up autoresponders when someone purchases or requests something from your website. A few sites that offer automation solutions include: http://www.1automationwiz.com and http://www.autoresponseplus.com.
Even with more portability, moms need some time to work, relax, rejuvenate or just catch a breath. So what to do with those sweet cherub-like children squealing and running underfoot?
Check out the summer camps in your area. These days there are camps for just about everything from sports to art to acting to science. Check your local parenting publications. Many of them have summer camp guides.
Kid Swap? No, this isn#146;t a bad, new reality TV series. It#146;s an opportunity to pre-arrange some play date exchanges with your trusted friends and neighbors. Kids get to play and have fun and moms get an opportunity to catch up on work or find a little time for relaxation.
Consider a Mom#146;s Helper. They can be great playmates and keep your kids occupied while you work. You may hire someone once a week, every morning or whatever your schedule and work requires.
With a little planning and forethought, you can make this summer not only less stressful but actually enjoyable and fulfilling. Take time now to get yourself ready. You and your kids will be glad you did.
Lesley Spencer is founder and president of the HBWM.com, Inc. Network whichincludes:
http://www.HomeBasedWorkingMoms.com
,
http://www.WorkAtHomeKit.com
,
http://www.edirectoryofhomebasedcareers.com
,
http://www.momsworkathomesite.com
,
http://www.HBWMconferences.com
,
http://www.HBWMcanada.com
and
http://www.HireMyMom.com
(coming soon!). She has a Master's Degree in Public Relations and has been featured in numerous media outlets including CBS News, Forbes, Business Week, Parents, Wall Street Journal and USA Today. She has been working from home for over 10 years and has two children whom she absolutely adores! Permission granted for use on DrLaura.com
Staff
2010-05-07T08:47:43Z
Thinking About Going "Sub S"?
Staff
http://www.DrLaura.com/b/Thinking-About-Going-Sub-S
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2010-05-07T08:47:40Z
2010-05-07T08:47:40Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Thinking About Going "Sub S"?
Cliff Ennico
www.creators.com
#147;For some time now, I have been thinking about forming a limited liability company (LLC) for my small service business. I attended a seminar recently and learned that there#146;s a new law, just recently passed, that has made Subchapter S corporations a much more attractive option. What is this new law all about, and should I reconsider forming a Subchapter S corporation for my business?#148;
Late last year, Congress passed the American Jobs Creation Act of 2004, the fifth major tax cut in four years. This law garnered a lot of attention in the press earlier this year because of its most dramatic change: a provision that enables taxpayers to deduct either their state and local sales taxes OR their state and local income taxes on their federal tax return, whichever is greater. If you live in a state (such as Alaska, Florida, Nevada, South Dakota, Texas, Washington or Wyoming) that has a state sales tax but no state income tax, that#146;s a big deal.
But this same law made a number of significant (although, in the view of this writer, not terribly awe-inspiring) changes to the complex rules for Subchapter S corporations (essentially, a corporation that elects to be taxed as if it were a pass-through partnership). According to Diane Kennedy, a Phoenix, Arizona CPA and author of #147;Loopholes of the Rich: How the Rich Legally Make More Money and Pay Less Tax#148; (
www.taxloopholes.com
), the key changes are:
the maximum number of shareholders Subchapter S corporations may legally have is now 100 persons (increased from 75);
all members of a family who own shares in the corporation are treated as one shareholder for purposes of counting the number of shareholders;
members of a family are #147;a common ancestor, lineal descendants of the common ancestor, and the spouses (or former spouses) of lineal descendants of common ancestors#148; (got that?); and
if a shareholder of a Subchapter S corporation gets divorced, and the judge awards his or her spouse shares of stock in the Subchapter S corporation, any #147;suspended#148; losses attached to the shares can be transferred to the ex-spouse along with the shares themselves.
The intent of the new law, according to Kennedy, is to make it easier for larger, family owned Subchapter S corporations to transfer assets to family members and engage in creative estate planning techniques without losing their Subchapter S status. For the vast majority of Subchapter S corporations, however #150; those having far, far fewer than 100 or even 75 shareholders #150; the new law will have little, or no, impact on the decision whether to form a Subchapter S corporation or an LLC for a new business.
So what should this reader do with his or her small service business? Let#146;s review some basics. With an LLC, you get limited liability, pass-through tax treatment (the LLC is not a taxable entity, so everything passes through to the LLC owners and is taxed at their personal tax rates), and the LLC owners must pay both income and #147;self-employment taxes#148; (FICA, FUTA and Medicare) on everything the LLC earns.
The same is basically true of Subchapter S corporations, Kennedy says, but with one significant difference: #147;if you have a Subchapter S corporation, and you put yourself on the payroll as a W-2 employee, withholding taxes from each paycheck as you take money out of the corporation, you can often save a significant amount of money in self-employment taxes.#148;
True enough, but the question I would ask here is . . . is the tax saving worth the time and trouble of setting up a Subchapter S corporation? Like all corporations, Subchapter S corporations involve a lot of legal paperwork #150; you have to be fairly disciplined about keeping thorough records of business decisions you make (called #147;resolutions#148; or #147;minutes#148;). Forget to do the paperwork, and a judge or your state government may take your corporation away from you and expose your personal assets to the wolves. Also, Subchapter S corporations are subject to a fair number of rules designed to make sure only small businesses can take advantage of them #150; for example, Subchapter S corporations cannot issue preferred stock, or have shareholders who are not U.S. citizens or #147;Green Card#148; holders. Break any of these rules, and you lose the tax benefits of having a Subchapter S corporation.
One possible solution, according to Kennedy, is to set up an LLC, and then elect to have the LLC taxed as if it were a Subchapter S corporation #150; the IRS allows you to do this by filing IRS Forms 8832 (to elect to have your LLC taxed as a corporation) and 2553 (to elect Subchapter S status), and you probably also will have to alert your state tax authorities so they don#146;t get confused. But be careful #150; as the ancient mariners used to say on their maps when things got a little imprecise, #147;here be demons#148;. When deciding whether to form an LLC or Subchapter S corporation for any small business, talk to your accountant first, and keep your life as simple as possible.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:47:40Z
How To Write A Business Plan
Staff
http://www.DrLaura.com/b/How-To-Write-A-Business-Plan
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2010-05-07T08:47:37Z
2010-05-07T08:47:37Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>How To Write A Business Plan
by Tammy Ames 2005
Writing a business plan isn't optional just because you consider this simply a home business. You are a small business owner. A written business plan is required to secure finances or investors in your new home business. Starting a home business with yourown funds and ideas doesn't mean you don't need a business plan.
A written business plan is critical to every home business.
The thought process and research involved in writing your businessplan will reveal the blue print for your home business.
There are numerous paid and free business plan products that you can use to develop your own home business plan. Unless you areseeking investors in your small business, you can learn how to write a business plan that keeps your business working toward yourgoals. To have a well written small business plan, you will find your goals easier to reach and keep track of your progress both with building your customer base and sales.
Starting a home business without a writing a well thought out business plan is like building a house without a blue print to guideyou every step of the way.
Your home business foundation built on these eight areas will give your business a strong identity and focused sense of direction tohelp you plan and manage your business effectively.
Business Summary.
Write out a description of your business. What kind of company do you want to build? A well written description orsummary of your business often propels you through each step of how to write a business plan. Writing the summary first means you will always have the basic premise of your home businessidea at the top of everything you put in your business plan.
Name your business.
You may think that your direct sales business already has acompany name but that is not the name of YOUR business. Creating a distinct name for your business will help make your plan. Does your business name reflect what you offer? Is it easy to remember? Does it have strong branding potential?
Should you reconsider your current business name if it not working with your product? Make sure the name of your business fits not only your product or services but your mission statement.
Itemize your products or services.
Write out descriptions of your products; how do they look, smell, taste,feel or how your services will help others reach their own goals in life. How will your offerings improve the lives of others? Sort through why others aren't already doing it and if they are offering exactly what you are going to offer then what prevents the competition from doing it better or more cheaply than you are.
Mission Statement.
Your mission statement is a concise clear summary of the goals of your business. In your mission statement, you will define exactly what your business does, the products or services offered and what makes your business unique above the competition.Writing the bottom line of your business goals into your missionstatement will guide the rest of your business plan.
Business Assessment.
A major portion of your home business plan is a detailed assessment of four areas: your strengths, your weaknesses orlimitations, business and marketing opportunities and threats or barriers to your potential success.
At this stage of your business plan, you will be looking at your industry.
Your work experience and talents that will add to your business would fall under your list of strengths. Your lack of knowledge or funds could be listed as your weaknesses. Take into account howbroad your industry is when you are looking at your strengthsand weaknesses. If you have little money for start up then you will need to be creative in your marketing and running your business.Will your weaknesses mean your opportunities for success arelimited? Will your talent surpass your lack of funds?
Opportunities for business growth may be dependent on your networking contacts or website design. Every business owner should remain wary of all threats to business success. Planning for problems before they arise will make running a business easier and more successful in the long run. As you can see this aspect of businessplanning is critical to all of your vision, your mission statement, your goal setting and running your home business.
Goal Setting.
Write your vision for your business. Be specific. You can revise this as your goals and mission changes. How do you envisionyour business a year from now then five years from now? Write out your goals and objectives. Break down each product or service into their own set of goals. Plan for expansion as your business evolves.
Goals are useless unless you can measure your progress towards them and plan to regularly assess which goals have been met or still need to be fulfilled. Make your goals specific and time sensitive. With each business goal, itemize what needs to be in place to reach eachof your goals. Outline what steps you will take to reach the goals for your home business. Mark your calendar when its time to re-evaluate your goals and re-align your vision for your businessto match the direction your business is going.
Celebrate when you reach your goals and regroup when you realize you missed the mark. It's important to decide what you consider to be a major loss and what you will accept as unsuccessful. Knowing what you will accept and absorb as a business loss before it happens will help prepare you for when it actually happens.
Target Market.
Research your desired target market. Identify who you expect to buy your products or services. Write a profile of your average customer. You need to know your target before you are able to aim. Study yourpotential customer's behavior. Where do they shop? What do they read?Do they move in specific social circles? Who wants or needs your business? Who will benefit from your product? What type of people will find your business a necessity?
You cannot expect to fill a need or desire of a customer if you do not know what makes your offer unique and necessary. Look at those that offer similar products with success. Write out how you can rise above and differentiate yourself from the competition. At this stage of yourbusiness plan, describe how you can stand out from the crowd. Write down how and why your company is better than the competition.
Study the competitions latest marketing strategies then outline here how you plan to counteract their business moves to give you the edgeyou need to stay unique and effective.
While studying your customers and competition, take the extra time to identify complementary products or services that may fit yourcurrent business plan that may give the edge you need to compete in the future.
Sales and Marketing Strategies.
How will anyone know your business exists? What steps will you taketo make your business known? How will your customers find you? What can you do to ensure that you attract the customers you seek? How will you track your efforts? How much money do you have to putthese strategies in place?
List your strategies - press release, printed catalogs, business cards,open house, craft fairs, business, conventions, virtual expos, sales letters, etc.
Determine whether you will market exclusively online, locally to your warm market or a combination of both. If online marketing is part of your business plan then include an internet marketing plan to include your domain name and host, whether you will hire a professional website designer or do it yourself, your business logo and e-commerce set up.
Business Start Up.
Determine what equipment and services you will need to run your business to include setting up your home office, equipment, supplies, product inventory, customer record keeping, and bookkeeping. Create a checklist of professionals you need to secure for legal and financial advice, advertising expertise, office assistance or tax expertise.
Starting a home business can be exciting and scary because it is Your dream that you are working towards with each work day. To write a business plan, means a great deal of commitment to the process. The process of writing a business plan will bring you closer to understanding yourself, your business goals, your company identity and reaching yourpotential customers.
Although these areas are critical to writing a business plan, there is muchmore that will be added to your plan over time. Each time you reach a goal or discover a barrier to making the sale ~ you will return to your businessplan and revise your goals, strategies and techniques.
Home business success is in the plan and implementation but also in theability to adjust and redefine your business goals to meet your customersneed or desire while letting you design your home business your way!
WAHM Connections strives to bring solid, effective business tools and resources for the home internet business. WAHM - Work at Home Connections E-zineOnline Business Start Up Promotion Resources
http://www.wahmconnections.com/
Create Your Own Homemade Joy Today!
http://www.homemade-joy.com/
Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:47:37Z
In Praise Of "Quiet Competence"
Staff
http://www.DrLaura.com/b/In-Praise-Of-Quiet-Competence
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2010-05-07T08:47:33Z
2010-05-07T08:47:33Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>In Praise Of "Quiet Competence"
Cliff Ennico
www.creators.com
It#146;s summer reading time. And while most folks are out reading the latest Harry Potter installment, or chilling with a dog-eared murder mystery from the local library#146;s used book sale, a few of us are catching up on the latest books of #147;business wisdom#148;, looking for something that hasn#146;t been said 10,000 times before.
Now, readers of this column know that I#146;m not a big fan of the type of business book that might be called #147;Some Obscure Historical or Literary Figure You Vaguely Remember from High School, and What He or She Can Teach You About Running a Business#148;. But for every rule, there are a few exceptions.
How I missed this one I don#146;t know, but the next time you#146;re in your local bookstore#146;s Business section, you might want to pick up a copy of #147;Soldier, Statesman, Peacemaker: Leadership Lessons from George C. Marshall,#148; by Jack Uldrich (AMACOM, $24.95 paper).
Don#146;t remember who George C. Marshall was? Well, don#146;t feel badly. Back in 1967, when I was all of 13 years old, I was an avid stamp collector. That was the year the Postal Service released a 20-cent stamp (very damaging to my weekly allowance, I can tell you) commemorating George Catlett Marshall, someone I never heard of before. Checking my Grolier#146;s encyclopedia and learning he was one of America#146;s top generals during World War II, I asked my Dad, a decorated U.S. Navy veteran, #147;what battles did Marshall win?#148;
Dad#146;s answer: #147;None, Cliff. He wasn#146;t a battlefield general; he was more of a behind-the-scenes guy.#148; A whopping 20-cent stamp to commemorate a behind the scenes guy? It just didn#146;t compute.
So here#146;s a quick history lesson. Subject: George Catlett Marshall.
As head of logistics for the U.S. Army during World War II, Marshall almost single-handedly transformed 175,000 poorly trained, poorly armed men into more than 8 million soldiers strong in the frantic months after the Pearl Harbor attacks in December 1941;
A leading strategic advisor to Generals Eisenhower, Patton, et al. during the Second World War, Marshall became the chief architect of the #147;Germany first#148; approach that focused on defeating Adolf Hitler in Europe before concentrating on the Japanese threat in the Pacific;
As Secretary of State under President Harry Truman after the war, he introduced the European Recovery Program, which became known as the #147;Marshall Plan#148; for its leading role in #147;winning the peace#148; and securing America#146;s superpower status;
Ultimately, after serving as the president#146;s emissary to China, head of the American Red Cross, and Secretary of Defense, Marshall became the first professional soldier ever to be awarded the Nobel Peace Prize.
Clearly, Marshall was someone who knew how to operate and manage one of the biggest enterprises in world history #150; someone who probably could teach you a thing or two about running your business better. I#146;m not going to reveal any of the #147;business#148; lessons of Marshall#146;s life #150; you#146;ll have to buy and read Uldrich#146;s book yourself.
But in my mind, Marshall#146;s biggest #147;business lesson#148; comes not from what he did during his life, but what he didn#146;t do. The very fact that we struggle today to remember his achievements is, paradoxically, one of his greatest achievements.
Years ago, when I was writing a book for lawyers on how to improve their people skills, I interviewed several dozen law firm partners and asked them what they valued most in a young lawyer. It was amazing to me how often the same two-word answer came back: #147;quiet competence#148;. Competence #150; the ability to get jobs done consistently right and on time #150; coupled with #147;quiet#148; #150; not drawing undue attention to yourself or how important your project was to the firm.
If you had to describe Marshall in just two words, they would be #147;quiet competence#148;. Marshall#146;s place in history cannot today be questioned, yet it is amazing how little he tried to gain media attention or cultivate #147;superstar#148; status, unlike some other military figures from World War II. His achievements spoke for themselves, and consistently led to ever greater achievements.
The point: to win a war, or succeed in business, you need heroes. But not all heroes are, or are meant to be, famous. In our media saturated world, it is possible to become a world famous celebrity without having achieved anything of lasting value. Given the choice, the better of us choose quiet competence over visibility-for-its-own-sake. In the long run, as Marshall knew, it#146;s the better choice.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:47:33Z
When Looking For A Good Attorney, Ask Questions
Staff
http://www.DrLaura.com/b/When-Looking-For-A-Good-Attorney,-Ask-Questions
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2010-05-07T08:47:32Z
2010-05-07T08:47:32Z
Staff
2010-05-07T08:47:32Z
I Got Those College Reunion Blues Again
Staff
http://www.DrLaura.com/b/I-Got-Those-College-Reunion-Blues-Again
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2010-05-07T08:47:29Z
2010-05-07T08:47:29Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>I Got Those College Reunion Blues Again
Cliff Ennico
www.creators.com
Just got back from my 30th college reunion (sob), and was amazed by the number of my 50-something classmates who have abandoned the corporate track to start their own businesses. Must be a trend, no?
Anyway, here are some interesting questions I was asked during the reunion #147;keggers#148; (at least, the ones I remember . . . )
#147;I live in State A but want to open a business in State B. I don#146;t want to open an actual office in State B, but I want to be incorporated in State B for tax reasons. Is there any way to do that legally?#148;
Generally, you don#146;t have to be a citizen of a state in order to set up business there. You do have to be a little bit disciplined, though. When you set up your company in State B, you will need to hire a #147;registered agent#148; to collect important mail from State B government agencies and forward it to you. A number of corporations, such as The Company Corporation (
www.incorporate.com
), offer this service for about $200 a year. I would also recommend opening a #147;private mail box#148;, such as those offered by The UPS Store, PakMail and other franchises, using that as your business address in State B, and having the franchise outlet forward all mail from your box to you on a weekly basis.
Now for the tough part. When doing business, only your State B address must appear on all your business stationery, correspondence, advertising and address labels. If anyone sees that you are really operating out of State A, you will be subject to all of State A#146;s laws, taxes, etc. I would even suggest forwarding all of your outgoing mail to your #147;private mail box#148; in State B each week, and having them post it there so the return postmark is a State B postmark.
#147;I#146;m employed full-time now, but am likely to be laid off in the next year or two. I#146;m thinking of starting a consulting practice in my field, and want to write and publish a book right now so I can #145;hit the ground running#146; when the time comes. How can I do this legally?#148;
First, you should make sure that you haven#146;t signed an agreement with your present employer giving them ownership of any creative work product you generate while working for the company. If you have, then all the royalties and other income from your book legally belong to your employer; of course, they may let you keep it out of the goodness of their hearts . . .
Your book should not make use of any confidential information you received only because you are a corporate employee, and please, please avoid using actual company employees in your examples and #147;war stories#148;. If you do, be sure to change their names and enough other details so that they (and you) won#146;t be embarrassed.
Finally, realize that corporate employees rarely write books as a way of advancing within the corporate hierarchy. Once your book is published, your bosses will wake up to your plans to #147;strike out on your own#148;, and your future there may well be nasty, brutish and short.
#147;I have been working as office manager for a private investigation firm for the past 8 years. There are two partners who started the company 10 years ago, but I am just an employee, and have been looking for #145;greener pastures#146; for some time. The partners got wind that I was thinking about leaving the company, so they recently offered me an equity stake of 1% of net profit (about $4,000 before taxes last year). I declined politely (I was actually insulted, but I didn#146;t let them see that), but then they asked me to make them a counteroffer. What should I do? I made about $111,000 last year, and generate approximately $280,000 in billable hours, while the company#146;s gross revenue is about $2.8 million.#148;
You#146;re generating about 10% of the company#146;s gross revenue, but you have absolutely no control over the amount of profits the company makes each year. That all depends on your bosses#146; ability to keep costs under control. I would ask for a percentage of the company#146;s #147;pretax earnings#148; (gross revenue less operating expenses, but before taxes and compensation to owners) in a service business like this.
Keep in mind, of course, that your bosses don#146;t have any legal obligation to give you any sort of equity compensation, and may well consider 1% of profits to be quite generous. Since the company has only $400,000 in profits to divvy up at the end of each year, each additional $1,000 you ask for is asking the partners to cut back their standard of living . . . something all of us are reluctant to do these days.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:47:29Z
Ten Really Cool Things I Learned At Ebay Live! 2005
Staff
http://www.DrLaura.com/b/Ten-Really-Cool-Things-I-Learned-At-Ebay-Live!-2005
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2010-05-07T08:47:28Z
2010-05-07T08:47:28Z
Staff
2010-05-07T08:47:28Z
If You've Got The Money, Partner, I've Got The Time
Staff
http://www.DrLaura.com/b/If-Youve-Got-The-Money,-Partner,-Ive-Got-The-Time
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2010-05-07T08:47:26Z
2010-05-07T08:47:26Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>If You've Got The Money, Partner, I've Got The Time
Cliff Ennico
www.creators.com
#147;My wife is starting a limited liability company (LLC) with a friend. My wife will work in the business full time, while her partner will not. Her friend, however, is putting up a significant amount of cash for the business, which my wife can#146;t do. What is the fairest way to divide the ownership of the LLC in a situation like this?#148;
This is a tough one, and you will need the help of a really good tax adviser because the LLC tax laws are very tricky. Here#146;s one possible way to set up the LLC, according to tax lawyer Joseph Sweeney of Fairfield, Connecticut (
joe_sweeney@att.net
):
First, your wife and her friend will need to sign an Operating Agreement (similar to a partnership agreement) when they form the LLC #150; make sure this is drawn up by a good lawyer;
The Operating Agreement should provide that for management purposes, your wife and her friend will always be 50/50 owners of the LLC #147;regardless of their respective capital accounts#148;; and
The Operating Agreement should also provide that your wife shall be entitled to #147;up to $XXX#148; in compensation each year for her services to the LLC, #147;or such greater amount as shall be approved by 100% of the LLC members from time to time#148;.
So, for example, if your wife is entitled to take up to $50,000 as compensation, and the LLC earns $75,000 in net income this year, your wife would take her $50,000 #147;salary#148;, and the $25,000 balance would be divided 50/50 ($12,500 each) between your wife and her friend. Your wife would report $62,500 ($50,000 + $12,500) as income on her tax return for 2005, and her friend would report the remaining $12,500. Because your wife has only 50% of the LLC membership interests, she will need to obtain her friend#146;s consent before making any major business decisions, and if the LLC is later sold or goes out of business, your wife and her friend would share the proceeds 50/50 after paying off the LLC#146;s debts.
Another possibility: your wife and her friend could be 50/50 owners of the LLC for management purposes, but with a provision giving your wife #147;preferred distributions#148; instead of a salary over a period of time while the business is growing. Example: the LLC would agree to pay your wife 80% of the LLC#146;s profits instead of 20% until such time as the LLC#146;s annual profits reach a specified target amount (basically, an amount that will enable your wife to live on 50% of the profits). At that time, the #147;preferred distributions#148; (the additional 30% of profits paid to your wife) would cease and the two owners would share in all future distributions 50/50, the same as their management split. This arrangement may make sense if you have no idea how much money the LLC will make (i.e. whether or not there will be sufficient income to pay your wife a fixed salary) in the early years.
Yet another possibility: have your wife be the sole owner of the LLC, and have her friend loan the money to the LLC. Your wife would promise to repay the loan over the next 10 years, with simple interest at 6% per annum (a good commercial rate right now, and easy to calculate) plus an #147;equity kicker#148; of X percent of the LLC#146;s net income each year. That will give her friend a share in the LLC#146;s success, and your wife will have sole control over the LLC#146;s business. However, this arrangement has some disadvantages, according to Sweeney:
this arrangement might overtax the cash flow of the LLC in any given year;
your wife#146;s friend will not enjoy any of the capital appreciation if the business is sold or liquidated;
your wife#146;s friend will not enjoy a deduction for any losses the business may incur.; and
if the business doesn#146;t succeed, the loan will be a writeoff for the LLC, triggering #147;forgiveness of indebtedness#148; income that would pass through to your wife, creating a nasty tax surprise for her (and you).
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:47:26Z
How to Deal with Angry Customers
Staff
http://www.DrLaura.com/b/How-to-Deal-with-Angry-Customers
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2010-05-07T08:47:22Z
2010-05-07T08:47:22Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>How to Deal with Angry Customers
By JoJo Tabares
"I am tired of YOU PEOPLE sending me this dumb invoice every month!" Sounds pretty scary, doesn't it? You may be thinking...He sounds angry and I don't like talking to angry people.
Well, would you believe me if I told you that you could learn some techniques that would turn this person in to a happy customer? It's true!
Many times what an angry person really wants is someone who will listen and do their best to help. They don't necessarily need someone to say the "right thing" or someone who will "solve all their problems". They just need you to listen and do your level best to help them get what they feel they deserve.
Now we interrupt this communication advice for a message from reality: *BIG DISCLAIMER* Nothing in communicating with human beings is certain because every person is different and their moods change from day to day or even minute by minute. Nothing works 100% of the time, but these tips will help you increase your chances of creating a connection with this person and enable him walk away feeling that you honestly did you utmost to help him!
Don't take it personally.
Understand that most angry customers aren't angry with you personally, but rather with the situation in which they currently find themselves. They may be frustrated and, until you hear them out, you have no idea why.
Let them vent.
Part of being good at customer service is letting the customer feel that he has the floor. Let him tell you the entire story. Take notes if it is long or involved. Only after the customer has felt like he has said his peace should you attempt to solve his problem. Make sure you are actively listening to what he is saying and what he is not saying. Sometimes you can tell more about what would satisfy a customer by paying attention to what your customer didn't say or by the nonverbal cues your customer gives out -than you can by the words he chooses.
Ask for clarification if there is something that you do not understand.
Better to ask what may seem like a dumb question then to start off on the wrong path to solve his problem. If you begin by answering a question he didn't ask, the anger will only intensify. Make sure you know what it is that happened and perhaps what he wants done about it before you begin.
Validate your customer.
Sympathize and empathize with your customer as much as possible. Tell him you are sorry that he is so frustrated. This is not the same as admittingfault or accepting blame for the situation. It just further lets your customer know that you are there to help him and are interested in his welfare and not just the company's bottom line. Otherwise your reactions to his anger or your responses to his statements may serve only to fuel the customer's anger.
State back to the customer what you heard him say.
To make sure you didn't misunderstand, state back to the customer what you heard him say is the problem. This way you can clear up any last minute details before you get into the answer with him.
You don't have to have all the answers.
Saying "I don't know." may be the correct answer to the customer's question. One of the worst things you can do is to pretend to know the answer only to find that it won't work for the customer. Be honest and tell the customer you will have to find out for him and call him back. Ask him if he can hold if the answer is within reach. Make sure you follow up with the customer when you said you would!
Share your commonalities with your customer instead of focusing on the differences.
Identify with him by bringing out something that you both have in common. Perhaps share a short story about something similar that happened to you.
Tell your customer what you can do for him.
If you can do exactly what your customer wants, fantastic! If you can't, have another proposal ready that would be a good fit for your customer. If you feel it is warranted (and if you can), offer a freebie or a discount on another product to show good faith.
If your suggestion doesn't appeal to the customer, ask him what he would like you to do and see if you can accommodate him.
Sometimes your customer may not even know what he wants from you. Stating this may help your customer realize that they are being unreasonable. Or perhaps your customer will come up with a way that will work for him that you would never have thought of on your own.
Explain why you may be limited in what you can do.
If it simply isn't possible to do what he wants or if it is just too costly for your company to do this, explain that openly and honestly with your customer.
Thank your customer for bringing this to your attention.
If they have brought an issue to your attention that will allow you to better meet the needs of your other customers, this is a good thing for you to know! Thank your customer for allowing you to provide better service or a better product to your customers. They will appreciate knowing that not only did you help them with their problem, but that they were the catalyst for a positive change in your company.
JoJo Tabares holds a degree in Speech Communication and has over 20 years of experience in the field. She is the author of the Say What You Mean series of studies on effective communication skills. If you would like more information on how to effectively communicate in small business, please visit
www.artofeloquence.com
. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:47:22Z
When Family And Friends Become Investors
Staff
http://www.DrLaura.com/b/When-Family-And-Friends-Become-Investors
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2010-05-07T08:47:20Z
2010-05-07T08:47:20Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>When Family And Friends Become Investors
Cliff Ennico
www.creators.com
#147;I am trying to raise $500,000 for my limited liability company (LLC). So far I have verbal commitments totaling $200,000. My attorneys are telling me that because this is a #145;private placement of securities#146; under the federal securities laws, I have to prepare a detailed prospectus and other disclosure documents and give them to my investors before I can take their money. These attorneys are quoting me between $10,000 and $15,000 to do the necessary paperwork. Do I really have to comply with the securities laws, when all of the investors will be friends and family members who are exceedingly wealthy and can easily afford to lose their entire investment if my company goes under?#148;
Just because your investors are friends and family members does not exempt you (or them) from complying with any law #150; federal, state or local #150; that regulates a company#146;s capital raising efforts. Whenever you hit up a friend or relative for seed capital, you are engaged in an offering of your company#146;s #147;securities#148;, and sadly, you have to at least consider whether or not you are required to comply with federal and state securities laws.
If you were raising more than $1 million for your business, you would have to file paperwork with the federal Securities and Exchange Commission (SEC) to register your offering as a #147;private placement#148; under the SEC#146;s Regulation D. The good news is that you#146;re looking for only $500,000, so you shouldn#146;t have to deal with the Feds.
The bad news is that each state has its own securities law #150; known as a #147;blue sky law#148; #150; regulating offerings of securities that are less than $1 million. These laws are literally #147;all over the place#148; #150; just about every state has adopted its own unique rules about what you have to do before you can take investment capital from a resident of that state. In most states, you will have to prepare a legal disclosure document called an #147;offering statement#148; (similar to a stock prospectus), and give it to your investors at least several days (the exact number varies from state to state) before you can legally take their money. In some states, you may be required to file a draft of your #147;offering statement#148; with the state securities agency and have it approved by the agency before you can give it to any of your investors. Special rules apply if you are raising capital for real estate development, oil and gas drilling, and other tax-advantaged investments.
You will need to identify the state in which each of your investor friends and family members resides, and find out what you have to do before you can legally take their money.
Here#146;s a way to save money #150; count the number of investors you think you will have in each state, and ask your attorney to tell you what the #147;de minimis#148; rule is in each state. Each state has such a rule (#147;de minimis#148; is Latin for #147;really small#148;), which when translated into plain English says #147;if you#146;re selling your securities to fewer than X residents of our great State, it#146;s not big enough for us to care about, so you don#146;t have to prepare or file any particular paperwork here.#148; The X, of course, varies from state to state. So, for example, in Connecticut you don#146;t have to do anything if your company has fewer than 10 investors total (including you), while in neighboring New York you can have up to 40 New York investors and an unlimited number of investors in other states. It may cost you a few hundred dollars to get this legal advice, but as long as you stay below the #147;de minimis#148; ceiling in each state where your investors reside, it may save you tens of thousands of dollars in compliance costs.
I#146;ve said it before in this column and I#146;ll say it again now #150; when borrowing money for your business from friends and family members, do not treat them as #147;friends and family#148;. Treat them the same way you would treat total strangers, and give them all the paperwork the law requires. Good contracts make for good business relationships.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:47:20Z
Real Estate Is Great, But Remember, It's A Business
Staff
http://www.DrLaura.com/b/Real-Estate-Is-Great,-But-Remember,-Its-A-Business
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2010-05-07T08:47:17Z
2010-05-07T08:47:17Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Real Estate Is Great, But Remember, It's A Business
Cliff Ennico
www.creators.com
Looking for evidence that the current speculative #147;bubble#148; in real estate is just about ready to burst? Read this week#146;s e-mail:
#147;I am buying two properties (condo units) in Florida. Both will be in the same building, which is pre-construction, so I am essentially buying just the contract, no real property. I hope to sell the properties before construction of the building is completed and they close in early 2008.
I am buying the first unit 50% from my personal savings and 50% with money from my regular IRA, which I plan to convert to a Roth IRA with the expectation that the profits on that half of the investment will then be tax-free to the Roth IRA. Since I#146;m told only one investor can buy each unit, I plan to set up a limited liability company (LLC) to own the second unit. My Roth IRA would invest in the LLC, which would then purchase the second unit. My question is: will the profits on this second unit be tax-free because they will #145;flow through#146; to my Roth IRA?#148;
Wow, did you get all that? Basically, this person is so desperate to cash in on the real estate #147;boom#148; that he or she is tapping an Individual Retirement Account (IRA) to buy two units in an apartment building that hasn#146;t even broken ground yet!
The questions raised by this e-mail are extremely technical in nature, and should be answered only by a tax professional who is intimately familiar with the complex rules governing IRAs. If a Roth IRA cannot legally invest in a pre-construction contract like this one, you will be clobbered with taxes, interest and penalties for making a premature #147;distribution#148; from your IRA if you are younger than 59-1/2. But I do have some common sense advice for anyone thinking about making this kind of investment: DON#146;T DO IT!
Inspired by a number of best-selling books describing the cash flow benefits of investing in real estate, such as Robert Kiyosaki#146;s #147;Rich Dad, Poor Dad#148; series, a lot of inexperienced suckers #150; er, I mean investors #150; are putting everything they#146;ve got in speculative real estate schemes that make this one look tame. Investing in real estate now is like buying stock in a #147;dot com#148; startup circa 1999. Frankly, I wouldn#146;t buy ANY investment real estate right now, especially real estate that won#146;t be ready to generate income until 2008, and I certainly would not use my retirement money to do so. Wait for the bubble to burst and then, if this builder is still around (I doubt they will be), you can pick up these units at a bargain price, without having to hit your retirement savings, assuming you think the location will still be desirable in three to five years#146; time.
What about real estate that is ready to generate income today, such as a two-family home that you can rent out to families just getting started in life? Always remember that when you own a rental property, you are a #147;landlord#148;, just like Snidely Whiplash, complete with top hat and handlebar moustache. Everyone I know who does it says it#146;s a part-time job, and you have to look at it that way. Be prepared to devote at least 20% or 30% of your total available time to managing your #147;investment#148;. After all, when the toilet overflows in one of your apartments at 3 a.m. Sunday morning, whom do you think your tenant will call to fix it, right away?
The #147;Rich Dad, Poor Dad#148; books, while generally accurate in their explanation of how #147;the rich get richer and the poor get poorer#148;, don#146;t talk about the joys of dealing with insane tenants who trash your properties, refuse to pay their rent on time, and sue you for discrimination or some other trumped-up legal violation if you try to evict them. If you haven#146;t already, take a professional real estate management course before making any sort of investment in rental properties. Your local community college probably offers one.
If it really were as easy as the #147;Rich Dad, Poor Dad#148; books make it sound, everybody would be getting filthy rich investing in real estate. Trust me, it ain#146;t, and they aren#146;t.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:47:17Z
Surfing The Asian Tide
Staff
http://www.DrLaura.com/b/Surfing-The-Asian-Tide
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2010-05-07T08:47:14Z
2010-05-07T08:47:14Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Surfing The Asian Tide
Cliff Ennico
www.creators.com
Brace yourself for an onslaught of new business books and #147;news reports#148; about how China, India and other fast-growing Asian economies are wiping out the U.S. economy. According to the prophets of doom who write these things, there#146;s no way us big, fat, overpaid, lazy Americans can compete with highly disciplined, highly educated, extremely motivated Asian employees who are willing to work for pennies a day and even speak better English than we do. Listen too much to this malarky, and you#146;ll come to the conclusion that your retirement years will be spent in a shack somewhere, doing menial service work that no self-respecting Asian person would do while your grandchildren are combing the Mongolian countryside looking for suitable marriage partners.
Haven#146;t we been here before, folks? Remember all the books and movies that came out in the 1980s about how Japan was going to take over the world and the best Americans could hope for was to learn Japanese management practices like wearing uniforms, doing calisthenics every morning and shouting company slogans every five minutes? It didn#146;t happen then, and I don#146;t think it will happen now.
Still, there is no question that the Asian countries are lurching their way into the world economy. And we have to take this seriously. Wasn#146;t it Napoleon who said #147;China is a sleeping dragon, and when it awakes, it will shake the world#148;? Those who believe that the outsourcing of American jobs to Asia and the growing dominance of Asian companies in many industries are just a #147;flash in the pan#148; that will disappear in a few years are living in just as much a dream world as those that would sell the Brooklyn Bridge to the Malaysians.
It#146;s amazing to me how often something that is commonly perceived as a threat can really be an opportunity in disguise. As entrepreneurs, we are supposed to be studying trends in world markets and figuring out how we can make money from them, not sitting around spinning Doomsday scenarios. So given that China#146;s rise to world superpower status, and growing Asian dominance of significant parts of the world economy, are #147;megatrends#148; that aren#146;t likely to reverse course anytime soon, how can you position yourself to take advantage of them?
Or, to ask the question another way, #147;as China, India and other Asian countries move into the economic mainstream, and suffer the growing pains that all developing economies do, what products and services will people over there need that I can provide?#148; If you are a consultant or business specialist, you may be able to make a lot more money doing what you do in Qingdao these days than you do in Chicago.
Want to surf the Asian tide rather than stick your fingers in the dike and hope you can keep the ocean at bay? Here are some ideas, just a few of many, many possibilities:
Are you a downsized executive or lawyer that speaks a little Chinese? Set up your own consulting practice to help American companies find Chinese joint venture partners overseas, and vice versa.
Are you a former journalist? Teach Western journalism and public relations techniques to Chinese media organizations so they can obtain more favorable press in American news media. Cliff Hahn, a media consultant in New York City (
cliphy@yahoo.com
) takes it a step further #150; he teaches children in China how to write and publish newspapers, Internet Websites, and other news media as part of the nonprofit Children#146;s PressLine (
www.cplmedia.org
) in an effort to train the Chinese journalists of tomorrow.
Are you a speech therapist who wants a more exciting opportunity than working in a public school system? Fly to India and offer your services to the #147;customer call centers#148; that operate in several cities there. By training their employees in various regional American accents, you will enhance their marketability to U.S. corporate customers, and make U.S. consumers more comfortable dealing with foreign-based customer service operations in general.
The Asians are coming, and you basically have two choices #150; fight it (bad idea), or embrace it and help bring it to fruition in a way that will benefit your country, your career and your business (good idea). As they say in Beijing, #147;hao yun#148; (#147;hou wan#148; in Shanghai, "tumhara bhagya accha ho#148; in Bangalore).
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:47:14Z
Training The E-Commerce Entrepreneurs Of Tomorrow
Staff
http://www.DrLaura.com/b/Training-The-E-Commerce-Entrepreneurs-Of-Tomorrow
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2010-05-07T08:47:12Z
2010-05-07T08:47:12Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Training The E-Commerce Entrepreneurs Of Tomorrow
Cliff Ennico
www.creators.com
I was privileged to attend the recent Small eBusiness World conference in Chicago (
www.smallebusinessworld.com
) for business owners who are thinking about selling on the Internet but don#146;t know how to get started.
#147;This is the first time anyone has ever attempted to bring all of the leading e-commerce players together in one place to help small business owners overcome their fears of selling online,#148; says Paul Berger, serial entrepreneur and founder of MNetworks, Inc. (
mnetworks.com
), the Florida-based media company that created and hosted Small eBusiness World. Attendees at the conference were able to choose from over 100 programs on virtually every aspect of starting and running a successful e-commerce business, offered by eBay, Yahoo!, Google, Amazon, Microsoft, the U.S. Postal Service, and Entrepreneur magazine, among others.
Want to make really serious money selling online? Here are some tips and tools from folks I met at the conference:
A successful e-commerce business is a #147;three legged stool#148; consisting of an online store, an Internet marketing strategy, and a presence on eBay, according to e-commerce expert and author Jill Finlayson (
jill@mnetworks.com
);
Wanna put together a high-profile online auction of celebrity stuff for your charity or nonprofit organization? Check out
www.kompolt.com
, a Web-based service that can handle the whole thing;
For only $15.95 a month, you can open an #147;eBay Store#148; #150; an e-commerce Website on eBay that is search engine optimized for Yahoo!, Microsoft Network, and Google #150; and get up and running in about 10 minutes, according to Janelle Elms, author of #147;eBay Your Business#148; (
www.JanelleElms.com
);
According to eBay Motors expert Steve Lindhorst (
lindhorst@gmail.com
), the biggest mistake people make when selling cars on eBay is failing to stay in close contact with bidders #150; Lindhorst recommends
www.carad.com
, a vehicle listing tool that handles most communications so you don#146;t have to;
Not only can you set up your own Weblog (or #147;blog#148;) completely free on Google (
www.google.com/g2b
);
The U.S. Postal Service now offers a #147;flat rate box#148; for $7.70 #150; they give you the box, and you can stuff as much stuff in it as you want and pay only $7.70 for priority mail (that#146;s first class) delivery, no matter how much the bloody thing weighs (
www.usps.com
, click on #147;What#146;s New at USPS#148; link);
Yahoo! is now offering #147;Local Listings#148;, a free five-page Website for your store that you can easily customize with your logo, text, and links to other sites (
http://listings.local.yahoo.com
);
Wanna generate USPS-friendly mailing labels that won#146;t show your customers the exact amount you paid for postage? Check out Endicia Premium, a complete desktop shipping system with built-in insurance (
www.endicia.com
);
When investing in an e-commerce startup, investors look particularly for companies that are #147;using technology in a novel or intriguing way to give them an advantage over their larger competitors,#148; according to Jon Staenberg, partner of Seattle-based venture fund Rustic Canyon Partners (
www.rusticcanyon.com
);
Wanna create a database of all your eBay customers and send them newsletters by e-mail so they keep coming back to buy more stuff from you? Check out ConstantContact, a #147;do it yourself#148; e-mail marketing system (
www.constantcontact.com
);
If you are selling stuff on eBay, Yahoo! Shopping, Overstock.com, Google, Froogle and other Internet sales channels and want to keep track of all of your auctions, sales, stores and listings in one place, check out MarketWorks, a Web-based solution for managing inventory and processing orders from any online sales channel (
www.marketworks.com
);
To build a successful e-commerce company quickly, #147;start playing around with this stuff; don#146;t wait for things to get perfect, because [the world of e-commerce] is changing too fast and you#146;ll miss out on the best opportunities,#148; according to Rieva Lesonsky, editor of Entrepreneur magazine.
So you missed the show? Not to worry. MNetworks plans to launch a nationwide series of #147;eCommerce Boot Camps#148;#150; one day programs where business owners can get hands-on training to get started selling online #150; in the very near future. Stay tuned.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:47:12Z
The Age Of The "Microconsumer"
Staff
http://www.DrLaura.com/b/The-Age-Of-The-Microconsumer
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2010-05-07T08:47:09Z
2010-05-07T08:47:09Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The Age Of The "Microconsumer"
Cliff Ennico
www.creators.com
I feel sorry for politicians sometimes. Really . . . I#146;m not kidding.
People criticize elected officials for not taking firm stands on the issues or saying what they really mean, but you really can#146;t blame them. Every competent politician knows it#146;s a basic law of human nature: people are much more likely to remember negative information than positive information. If candidates take a firm stand on an issue, any issue, they risk alienating a good percentage of voters with contrary opinions, and that will cost them dearly at the polls.
Don#146;t believe it? Let#146;s say you and I meet on a street corner, and we talk about 10 things. We agree on nine of those 10 things, but disagree quite sharply on the 10th. We then part company, and don#146;t see each other for a year, when we glimpse each other on a crowded commuter train. Of the 10 things we discussed a year ago, which do you think we will remember? Oh, we may recall some of the nine things we agreed on, but we#146;re sure as Heck going to remember that 10th thing, aren#146;t we?
So if I#146;m running for office (don#146;t worry, I#146;m not planning on it anytime soon) and you agree with everything I stand for except for one thing #150; an issue on which you have pretty strong feelings #150; what will you be thinking about when you pull the curtains shut behind you in the voting booth come November?
Years ago, you had only three major television networks to deal with, and a handful of major newspaper and magazine chains, which limited the amount of information people received. Now, you have hundreds of cable television channels, thousands of Websites, Weblogs (#147;blogs#148;) and e-newsletters, enabling viewers to consider your views on dozens of diverse, often very narrow, issues rather than a manageable few.
Now, add the Internet and TiVo to this media stew. On the Internet, you cannot #147;push#148; any information in people#146;s faces. The Internet is user-driven. Any attempt to show people information they haven#146;t asked to see (by #147;Googling#148; it) will be branded as #147;spam#148;, #147;pop-up ads#148; or worse. On the Internet, the viewers determine which information they will view and which they won#146;t. They select who gets through the spam filter and who doesn#146;t. With TiVo they can watch only those programs on television they want to watch, and can even block out the ads. So if I (like most people) am liberal on some issues, conservative on others, pro-this and anti-that, I can select only those television programs, Websites or #147;blogs#148; that support my views, customize my media to fit my personal world-view, and create my very own political party.
So what does all this have to do with running your own business?
We live today in the age of the #147;microconsumer#148;. Years ago, when marketing channels were limited, companies could engage in #147;mass merchandising#148; -- casting their nets as widely as possible, identifying broad demographic groups, and emphasizing those problems and concerns that their individual customers had in common as members of those groups.
Today, #147;mass media#148; and mass merchandising are both pretty much dead. Marketers have hundreds if not thousands of media options, and can target their advertising as narrowly as they wish. Consumers have been taught to think of themselves as unique individuals, with their own peculiar tastes, desires and values. To survive in the #147;microconsumer#148; age, small businesses must learn to #147;customize#148; their brand offerings to niche markets, in an effort to capture as many individualized tastes as possible. You must pick these markets very carefully, make sure they are big enough to give you a decent living, and pray that they stay in one place long enough for you to earn a profit.
Oh, and don#146;t say anything they might disagree with . . .
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:47:09Z
Party Networking or "Are You George?"
Staff
http://www.DrLaura.com/b/Party-Networking-or-Are-You-George
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2010-05-07T08:47:07Z
2010-05-07T08:47:07Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Party Networking or "Are You George?"
By Chellie Campbell
www.thewealthyspirit.com
I love advertising my business through networking with other upbeatbusiness people. There are many networking groups in every city-trade organizations, Chambers of Commerce, Rotary Clubs, national associations, etc.
But you don't have to restrict yourself to business organizations.Parties are unofficial networking groups. This past January, I was invited to a friend's New Year's Day party, and I only knew a few people there. My friend, Victoria, introduced me to a woman friend of hers who was reading my book and enjoying it.
"You have to meet George!" she told me. "He has your book and he has been faithfully reading it one page every day. He would love to meet you."
Well, I always enjoy talking to a fan-I will go out of my way to find someone who is going to say nice things to me-so I set off in search of George. I didn't know what he looked like, and there were a lot of men at the party, so I just waltzed up to the first man I saw and said, "Hi! Are you George?"
The man shook his head and said, "No, I'm not. Why are you looking for George?"
"Someone told me that he was a fan of my book and wanted to meet me," I replied.
"Oh, really? You're an author? What book did you write?" the man asked.
"It's called The Wealthy Spirit..." and all of a sudden I am networking and telling this man all about who I am and what I do. After a pleasantconversation, exchange of contact numbers and information, I continued my search for George with the next man I saw.
"Excuse me, are you George?" I smiled sweetly.
"Nope. Who's George?..." More networking.
"I'm looking for George. Are you George?"
"No. Why are you looking for George...?"
I was getting giddy. This was the best line I'd ever used. This same conversation happened over and over. I met every man at the party before I found George (who was delightful, of course). What a great conversation opener "Are you George?" turned out to be! I decided that I might use it at every party I go to. You can use it, too. Invent an imaginary George, and use it as an excuse to talk to anyone you want!
Today's Affirmation: "I love talking with people and they love talking with me!"
Chellie Campbell is the author of
The Wealthy Spirit: Daily Affirmations for Financial Stress Reduction
, selected as one of Dr. Laura#146;s book recommendations. She created and teaches the
Financial Stress Reductionreg; Workshops
on which her book is based in the Los Angeles area and gives programs throughout the country. Her free e-newsletter is available at
www.chellie.com
. Permission granted for use on Dr.Laura.com.
Staff
2010-05-07T08:47:07Z
Educating Tomorrow's Entrepreneurs... Before It's Too Late
Staff
http://www.DrLaura.com/b/Educating-Tomorrows-Entrepreneurs...-Before-Its-Too-Late
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2010-05-07T08:47:03Z
2010-05-07T08:47:03Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Educating Tomorrow's Entrepreneurs... Before It's Too Late
Cliff Ennico
www.creators.com
As I have been speaking to entrepreneur groups around the country the past few months, I am often surprised, if not shocked, at how little most people starting out in their own businesses know about the fundamentals of the business world. In most cases, they are not to blame. The American education system never prepared them for living the lives they now live. Instead, it trained them to be something else #150; doctors, lawyers, engineers, corporate executives, technicians of one sort or another.
Now, I am not an educator (at least not professionally), so I cannot tell you what the goals of today#146;s education system are. From what I read, a fair number of education experts think there should be no goals at all #150; that education is and should be an end in itself. Fair enough.
But why shouldn#146;t one of the goals of our educational system be to prepare today#146;s students to become tomorrow#146;s entrepreneurs? If current economic and demographic trends continue many if not most of today#146;s students will have to run their own businesses at some point in their lives just to keep body and soul together. How can our educational system be redesigned to produce competent business people with the entrepreneurial spirit and the survival skills necessary to run those businesses? These are questions we need to at least think about.
You could write a book on this subject, but here are a few creative suggestions for modifying the traditional curriculum in ways that will give American high school and college students at least a fighting chance in the tough, no holds barred economy of tomorrow, without busting the fragile budgets most public and private school systems labor under. If you#146;ve got any better ideas, I#146;d love to hear them (and I#146;m sure I will).
Make Business Courses Mandatory
. Back in the 1960s, when I was in high school, business courses were not considered #147;fast track#148;. The college bound kids took #147;academic#148; courses while the rest took business or vocational courses. Sadly, from what I#146;ve seen, things haven#146;t changed much.
Business education needs to be integrated at every level of the educational process, and placed on a par with the more traditional #147;academic#148; subjects. There is no reason why a middle school student can#146;t learn the basic accounting equation (assets equal liabilities plus owners#146; equity), or a high school student can#146;t master basic bookkeeping techniques. Accounting, economics, marketing, finance and business law should be required subjects for graduating from any American high school.
Mathematics
. Today#146;s high school math program starts with algebra, then progresses through geometry, trigonometry and calculus. Fine and dandy. But what about #147;business math#148; -- probability, statistics, finite mathematics and quantitative methods for making business decisions? Many high schools relegate these subjects to a single #147;elective#148; course in the senior year (if they are offered at all), when they really should be integrated throughout the core math curriculum.
Psychology
. Understanding people, how they think and behave, is essential to running a successful business. Why, then, is it that most students never learn even basic human psychology until they#146;re in college? Teaching kids how the human mind works at an earlier stage will not only help them understand and appreciate others, but themselves as well. I can appreciate that teaching this material at too young an age can be very damaging, but juniors and seniors in high school should be able to handle it.
Languages
. American students not only need to learn more foreign languages, but they need to learn the right ones, the ones that will shape tomorrow#146;s world economy. Not to knock French and Italian, but the languages of the future (other than English) are Chinese, Spanish and Arabic. Chinese, so you can understand your future boss. Spanish, so you can communicate with your employees and coworkers. Arabic, so you can appreciate what motivates America#146;s current enemies, and do what you can to make them appreciate what motivates us. Every high school student should be proficient at a basic conversational level in at least two languages other than English. At least one of those should be an Asian language.
Typing/Keyboarding/Computer Skills
. Every kid should be able to type at least 50 words per minute by the time they reach high school. Every high school graduate should be proficient in the basic word processing, spreadsheet and presentation software programs that drive American business.
Physical Education
. Too many gym programs favor the athletically gifted kids. There are lessons you learn on the athletic field that you learn nowhere else, and the #147;jocks#148; should not have a monopoly on them. A more general #147;health and wellness#148; approach to physical education #150; focusing on individual physical fitness, exercise, nutrition, stress management and the dynamics of competition and teamwork #150; should help most students survive the heavy demands the entrepreneurial life places on the human body and soul.
History
. Economic, business and technological history should be placed on a par with political, military and social/cultural history. Kids should know who George Washington and Emily Dickinson were, of course, but they should also know what Henry Ford, Jethro Tull (the British inventor of the seed drill, not the rock band), the Securities Act of 1933, the Hollywood studio system, and the silicon chip contributed to the world we live in.
Career Education and Counseling
. Finally, we really need to do more to help kids figure out who they are, identify their unique strengths and weaknesses, and develop at least some idea of how they might fit into the world of work, business and the economy before they are thrown out into it to fend for themselves. Most people graduate college with only the vaguest idea of what different careers are all about #150; when I speak at high schools and colleges, you should HEAR what these kids think lawyers do for a living!
Too many young Americans are entering the professions not because they are gifted in that direction, but because #147;that#146;s where the money is#148;, #147;that#146;s where the status and prestige is#148;, #147;it looks so cool on television#148; or (most sadly) #147;that#146;s what you should do with a college education#148;. Many of these folks learn only much later in life #150; after the decision was made for them by an employer, a recession, a family crisis or an illness -- that they really should have done something different with their lives. By then it#146;s too late #150; they#146;ve climbed to the top of the ladder, but the ladder#146;s propped up against the wrong building, and there#146;s not enough time to start over again from scratch.
The #147;career day#148; and #147;take your son/daughter to work#148; programs are not nearly enough. We need to expose students at all levels of education to as many different career paths as possible, help them identify their interest in (and suitability for) specific careers throughout their developing years, and give them a working idea of what those careers are really all about.
Yes, things will change, and many jobs that are attractive today won#146;t exist in 20 years (or will be outsourced to other countries). But the greatest gift we can give today#146;s students is to remind them that someday their schooling will end, and that they need to start thinking today about choosing a path that will make them successful, or at least happy, tomorrow.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:47:03Z
Thank You, Louisville
Staff
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2010-05-07T08:47:00Z
2010-05-07T08:47:00Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Thank You, Louisville
Cliff Ennico
www.creators.com
I was privileged to be the featured speaker at a recent #147;eBay for Business#148; forum in Louisville, Kentucky co-sponsored by eBay and
Entrepreneur
magazine. More than 200 souls, many of them faithful readers of this column each week in the Louisville
Courier-Journal
, braved a torrential downpour to hear their favorite Wall-Street-lawyer-turned-small-business-journalist speak on the legal and tax aspects of starting a business on eBay. And, like always at events like these, a lot of folks were looking for some heavily discounted advice on how to run their businesses.
Here are some of the more interesting questions that came up during the QA session after my talk:
#147;I ran an eBay business with another guy until the middle of last year, when I let him buy me out. He#146;s continuing with the old business, and I#146;m doing something similar as a sole proprietorship. Is there anything either of us has to do to let the world know we#146;re no longer a partnership?#148;
Actually, there are a few things. Your ex-partner has to file a Form1065 (partnership return) with the IRS, along with the corresponding Kentucky state tax form, by April 15 of this year, showing all income the two of you made last year until you dissolved the partnership. If this isn#146;t filed on time, you will be subject to a late filing penalty of $600 per partner ($1,200 total in your case). He should be sure to check the #147;last return filed#148; box on both returns so the tax authorities will know that this is the last partnership return you will file. Your ex-partner also needs to obtain new federal and state tax ID numbers for this business, as it is now a sole proprietorship and therefore considered a different type of entity for tax purposes.
In addition, both you and your ex-partner need to file Schedule C on your personal tax returns this year showing the income each of you made as sole proprietors after you dissolved your partnership.
#147;I formed a limited liability company (LLC) with my husband and obtained federal and state tax ID numbers for an eBay business last year, but never actually got started because my spouse was laid off from his full-time job and we both needed to work part-time to pick up the slack. I#146;m still thinking about doing this business someday, but do I have to file tax returns for a business that#146;s not doing anything?#148;
You absolutely must file federal and state tax returns for this business. Once you obtain federal and state tax ID numbers for a business, the tax authorities want to see a tax return each year with those numbers on it. If they don#146;t get returns matching those numbers, they assume you forgot to file them. That can trigger penalties for failing to file a tax return (see previous answer), and could lead to a tax audit that might not necessarily be limited to your business income.
Since you and your husband were co-members of the LLC, you should file Form 1065 (partnership return) by April 15 of this year. Since the business had no income, and possibly incurred a loss (if you#146;re not sure, talk to your accountant), this should be reflected on the Form 1065. You and your husband should also file Schedule C on your personal tax returns showing your percentage share (for example, 50/50 if that#146;s how you agreed to divvy up profits and losses from the LLC) of any loss from last year. Under current IRS rules, you can carry this loss forward and apply it against any income you may generate from the LLC business in future years.
#147;My father ran a successful retail business until he died last year, leaving the business, as well as his entire estate, to my mother. My Mom is very sick, and cannot run this business. She wants my wife and me to run the business, and split the profits 60% for us and 40% for her. How do we set this up legally?#148;
My answer has to be in two parts. First part: what you should do now. You probably should consider forming a limited liability company (LLC) for your Mom, so that if you do anything legally wrong in running the business it doesn#146;t affect your Mom#146;s personal assets or the other assets in your Dad#146;s estate. Your Mom would be the only member of the LLC, and would appoint you as #147;managers#148; to run the LLC business on her behalf. You would then have the sole power and authority to run the LLC business (in other words, your Mom can#146;t tell you what to do, at least legally), and your compensation would be 60% of the LLC profits. Your Mom, of course, would receive the other 40% as her ownership stake in the business.
Second part: what you need to do before your Mom dies. Under current tax law, if your Mom dies between now and 2010 and her estate is valued at more than a certain amount (which changes each year), any transfer to you or other family members will be subject to federal estate taxes, which are gradually being phased out between now and 2010. No one currently knows what will happen if your Mom dies after the year 2010; if the estate tax is not phased out permanently before then, it will revive, with tax rates going as high as 55% of the estate#146;s value.
If I were you, I wouldn#146;t play the #147;estate tax guessing game#148;. As soon as you form the LLC for your Dad#146;s old business, get your Mom to an attorney specializing in estate planning, and work out an orderly transfer of her LLC membership interests to you and your wife over the next few years. That way, if your Mom dies unexpectedly while the federal estate tax is still in effect, the tax will apply only to the percentage of the business she owns at the time of death. If it#146;s structured properly, your Mom won#146;t owe gift taxes on the portion of the business she transfers to you each year, and your Mom can still continue to receive 40% of the profits each year until she either dies or transfers all of her ownership to you and your wife.
One last thing: thanks to the anonymous individual who approached me in the hotel lobby after my talk and handed me a bag of #147;Kenny#146;s Cajun Gourmet Microwave Popcorn#148; (
www.kennyscajuncorn.com
). I truly admire your spunk and entrepreneurial spirit #150; to market a specialty food item successfully you#146;ve got to take advantage of EVERY selling opportunity you get -- and the popcorn is delicious. Now, if there are any entrepreneurs in Louisville distilling 100-proof Bourbon in their spare time . . .
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:47:00Z
Do You Need An Auction License To Sell On Ebay?
Staff
http://www.DrLaura.com/b/Do-You-Need-An-Auction-License-To-Sell-On-Ebay
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2010-05-07T08:46:57Z
2010-05-07T08:46:57Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Do You Need An Auction License To Sell On Ebay?
www.creators.com
#147;I have been buying and selling stuff on eBay for years. Recently, I started taking consignments from people in town who don#146;t have the time or patience to sell stuff on eBay themselves. This business proved to be so profitable, I started taking out ads in local newspapers describing my business as an #145;eBay consignment shop#146;. Last week I received a nasty letter from my local Chamber of Commerce warning me that I was in violation of state law because I did not have an auction license. Do you really need such a license to sell stuff on eBay?#148;
Hoo boy, is this a hot issue right now!
Let#146;s begin with the basics. Just about every state requires that auctioneers obtain a license. This involves applying for the license, paying a fee, and (sometimes) taking a 20 or 30 hour training course at a nearby college. If you operate an auction house or barn where you take other people#146;s property on consignment and conduct #147;live#148; auctions, you will almost certainly have to get this license before you can bang your first gavel.
But what about online auctions? A growing number of states have been expanding their #147;auctioneer license#148; requirement to include certain online sellers as well. Why? Well, there are basically two reasons:
Consumer protection -- people who have problems with online auctions and who don#146;t understand the proper way of dealing with those problems (such as posting #147;negative feedback#148; on eBay#146;s Feedback Forum) register complaints with their state#146;s auction board, and the board decides to #147;do something about it#148;;
Greed #150; Internet commerce has cost the states tons of revenue from sales and other business taxes (which usually don#146;t apply to interstate sales), and the temptation to impose a license fee as an #147;indirect tax#148; on Internet auctions may be irresistible in states that are struggling financially.
So do you have to get an auction license to sell on eBay? It depends. You will have to call your attorneys or your state#146;s auction board (for a directory of auction boards in all 50 states, go to
www.a1auctions.com/licensing
), and ask them three questions, in this order:
What are the requirements for obtaining an auction license in your state? If it isn#146;t that hard or expensive to get one, it may be better to just #147;bite the bullet#148; and get the license so you can sleep better at night (and get a leg up on your unlicensed competition #150; your buyers will feel more comfortable knowing you are a #147;licensed#148; auctioneer).
If getting a license is too painful, does the license law apply to online auctioneers such as people selling stuff on eBay?
If the answer to question (2) is #147;yes#148;, does the law apply only to #147;consignment shops#148;, or does it apply to all sellers who regularly buy and sell stuff on eBay?
If all you are doing is selling stuff out of your attic on eBay occasionally, or helping your Aunt Irma clean out her basement and not charging her anything, you will almost certainly not be required to obtain an auction license. At the other end of the spectrum, if you are in the business of taking other people#146;s goods on consignment and selling them on eBay for a fee (as this reader seems to be doing, and as eBay Trading Assistants do), and your state requires online sellers to be licensed, you probably will be required to get one. The idea is that by taking other people#146;s goods, you stand in a position of trust (what lawyers call a #147;fiduciary relationship#148;) to your sellers, and have certain legal obligations to your sellers that you must take very seriously.
The #147;grey area#148; is in the middle: what if you are routinely buying stuff from wholesalers, paying for the goods up front (not taking them on consignment), taking title to them, and then turning around and selling them on eBay hoping to make a profit? After all, you could argue that such a person is not an #147;auctioneer#148; at all, but merely a retailer selling goods in interstate commerce, taking advantage of eBay#146;s software to find buyers who will purchase the goods directly from the seller without the intervention of an #147;auctioneer#148; or other third party. Unfortunately, the state license laws are frequently unclear on this point, and unless your state auction board has published crystal clear rules stating precisely that you do not need a license to sell on eBay or another #147;nationally recognized Internet auction service#148;, the only way you can be 100% safe is to get the license.
Here#146;s an idea: rather than call the auction board yourself and alerting them to what you are doing, have your attorneys make the call on your behalf. That way you will preserve your anonymity (lawyers, after all, cannot freely disclose to third parties who their clients are), and if your lawyers are any good they will know how to ask the tough questions in such a way that you are more likely to get the specific guidance you need.
If you still don#146;t get a straight answer, get the license. When it comes to government regulation of any kind, no matter how unfair, it#146;s always better to be proactive and make a good faith effort to comply with the law than it is to ignore the law and hope the regulators won#146;t catch you. Because sooner or later, they will, and with your luck, you will be the #147;test case#148; that people read about on the front page of their local newspapers.
Until the law in this area gets a lot clearer, it#146;s the best you can do.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. .Permission granted for use on DrLaura.com
Staff
2010-05-07T08:46:57Z
ABC's to your Business
Staff
http://www.DrLaura.com/b/ABCs-to-your-Business
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2010-05-07T08:46:56Z
2010-05-07T08:46:56Z
Staff
2010-05-07T08:46:56Z
Partner, Employee or Independent Contractor?
Staff
http://www.DrLaura.com/b/Partner,-Employee-or-Independent-Contractor
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2010-05-07T08:46:52Z
2010-05-07T08:46:52Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Partner, Employee or Independent Contractor?
Cliff Ennico
www.creators.com
January 31 was the deadline for sending out 1099s to your independent contractors, and W-2s to your employees, showing how much you paid them last year. For some odd reason, though, by far the most e-mails I get on this topic come after January 31 each year. Seems like a lot of folks don#146;t wake up to the delicate question of #147;was this particular individual I worked with last year an employee or an independent contractor?#148; until after the deadline. Not a good practice, generally, but let#146;s try to come up with some answers.
#147;I am a franchisee of a large retail company, but have recently been offered a full-time job with a corporation. Because of this, I have hired a full-time manager to run the franchised business, and have offered him the job on a profit-sharing basis. He is shown as an employee on the payroll, for which I plan to give him a W-2 form at the end of the year, but we decided that I will issue him a 1099 for the share of the store#146;s profits which I gave to him in return for running the store. My question is: is it possible for a manager type of person to receive a 1099 and a W-2 in the same year?#148;
According to CPA and tax lawyer Joseph Sweeney of Fairfield, Connecticut (
joe_sweeney@att.net
), the short answer is that both types of payment must be included on Form W-2. #147;The general rule is that you cannot use Form 1099 to report wages and other compensation that you paid to employees; these must be reported exclusively on Form W-2,#148; says Sweeney. Even though part of your manager#146;s compensation consists of a share of the profits of your franchised business, you are treating him as an employee, therefore he gets a W-2 form at the end of the year.
#147;The first part of the year, I worked with a computer consultant as an independent contractor. Midway through the year, I decided I liked his work so much that I made him an offer of full-time employment with my company, which he accepted. So he has been my employee since about July 1 of last year. On December 31, I gave this person a cash bonus which I intended to relate to his work for me during the entire year. Do I give him a W-2 as an employee, a 1099 as an independent contractor, or both?#148;
According to Sweeney, in a situation like this, where you hired the consultant as an independent contractor for the first six months of the year and then as an employee for the last six months, you would issue a Form 1099 for the non-employee compensation paid to the consultant for the first six months, and Form W-2 for all payments made to him or her during the last six months. As for the year-end bonus, Sweeney says #147;even though the amount you paid this individual as a year-end bonus related to the period in which he or she was retained as an independent contractor, all of the payments you actually made to this individual in the last six months of the year (including the bonus payout) should be included in the W-2 form, not the 1099#148;.
#147;My accountant just told me that I should have sent 1099 forms to several individuals for work they did for my business last year, since I paid them more than $600 during the calendar year. A couple of these people were professionals #150; including my accountant! #150; but the others were local stay at home Moms who did contract work for me in exchange for a little extra spending cash. What kind of trouble can I get into for failing to send these people 1099s, and should I send them1099s now even though they are late?#148;
The federal Tax Code requires that you send out Form 1099 by January 31 each year to an independent contractor if you paid him or her more than $600 during the previous calendar year. The question you are really asking here is #147;what is the likelihood I will be audited or prosecuted by the IRS for failure to send out 1099s on time?#148;
I must answer with a question of my own: what is the likelihood that every one of your contractors (including all the stay at home Moms) will report the amounts you paid them last year with 100% accuracy when preparing their tax returns, and pay every red cent of income, self-employment and other taxes that are due on that income? Especially if they don#146;t remember how much you paid them (hey, the money#146;s already spent) and need your 1099 form to remind them?
No professional #150; accountant or lawyer #150; will ever advise a client to ignore a potential tax compliance problem, even though the risk of being penalized is small (and I#146;m not saying that#146;s the case here). My advice in this situation would be to send 1099s now to all of these people, even though they are a little bit late, and don#146;t forget to send copies to the IRS as you are required to do. You may get a little wrist slap for being late (the current penalty for late filing is $50 per 1099 form), and a couple of people may complain that they#146;ve already sent in their tax returns for the year and will now have to amend them thanks to your tardiness. But you will sleep better at night, and whatever penalties you incur will be only a fraction of what the IRS may hit you with if you ignore the problem and they catch you later on.
And please don#146;t miss the deadline next year.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC.
Staff
2010-05-07T08:46:52Z
Your Marketing Power
Staff
http://www.DrLaura.com/b/Your-Marketing-Power
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2010-05-07T08:46:49Z
2010-05-07T08:46:49Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Your Marketing Power
Tammy Ames
wahmconnections.com
2004
One of the most important marketing tools available online to promote your business cannot be purchased. You can spend hours on end looking all over the internet for the best program or system to market your product or service but truth be told, the answer is right there where you are sitting.
Yes!
You are the answer to viral marketing. It costs you only your time, your commitment and discipline to produce well written articles with information people are seeking. You are an expert. Share your expertise and build a following for your knowledge while creating a market for your offerings online!
Honestly, it doesn't matter if you are on a music or parenting site. We all browse through websites for advice and articles that will solve our life problems, explain life's mysteries, make our lives easier, less cluttered, and show us how to be more successful in relationships and business. We stumble across articles that help us, that answer our questions.
Have you ever found an article that when you finish reading it, you have this sudden feeling of "rightness?" After experiencing a writer's viewpoint, you understand something that baffled you. When a writer "clicks" with the reader, it is a reflex for the reader to want to know more about the author. Reader automatically searches for more writings by the author. Why? The author answered something for you!
Articles truly are the most powerful marketing tool you can use to sell yourself as a business.
Power? Yes! Marketing Power.
Online articles allow you to market yourself as knowledgeable, helpful, and consistent and willing to take the time to share what you know to friends you haven't met yet. This is power to develop relationships on-line. Through articles we can develop friendships, business contacts, customers, and online credibility. There is no need to "sell" yourself or your business within the article. Simply share your knowledge, your thoughts and ideas.
Selling occurs outside the article in the "resource box." A great deal has been written on how to sell within the "resource box." What exactly does this little blurb of information about the author provide the reader? The resource box allows the reader to know the author on a more personal note. Being able to identify with the author's role as single mom or work from home dad is a powerful human connector!
You create an image of the author but want to know if the image holds, so you click to visit their website or subscribe to receive their free e-mail course, maybe even download of their latest e-book. Each of these clicks brings you closer to the author. You feel connected and will remember them.
A single encounter with an author online doesn't usually make an immediate impact but after the second or third time you read yet another of this same author's articles found on yet another website. You take notice. You realize this is person to look up!
Just think about this.
Finding a great article that explains multi-level marketing, affiliate programs, baking home-made bread or how to potty train your resistance 3 year old can be a literal bright spot in your day! You open your mailbox and a friend has sent you a poem or story that had been forwarded to them.
That in a nutshell is viral marketing.
Over time you will notice websites, article banks and e-zines publishing articles by these same authors that have already helped you in some way. You mentally filed their name and maybe even their website to back of your mind as a positive. You find security in reading their latest article because you feel you already know that author on some level.
So if you share great stories, articles, poems, writings with friends and customers online then you already know the power of words to influence and change lives. It can be a very overwhelming. The thought of writing for others to read can be scary.
The joy comes in having someone send you an email or subscribe to your newsletter because you helped them with one of your articles. It is an important step in working from home. Developing a series of articles to help others to meet whatever challenges face them day to day..that is the goal and you will suddenly realize you are marketable.
Just as a musician has to strum their first chord before they can play in a band. The first step is the hardest but with practice you will see the power in your skills to share information others need or want. Now start writing!
Tammy Ames is a work at home mom to 4 children. Living in Maine, she has been in nursing for over 20 years and enjoys the challenges of working full time online from home. Tammy offers support for women starting their own home business with her work at home mom resource site:
Work at Home Connections
. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:46:49Z
Finding A Balance
Staff
http://www.DrLaura.com/b/Finding-A-Balance
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2010-05-07T08:46:47Z
2010-05-07T08:46:47Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Finding A Balance
By Debra Cohen
Eight years ago I left a career as Vice President of Sales for an international publishing firm in Manhattan for a slightly less glamorous pursuit--motherhood. From an economic point of view, my decision to give up my career was a difficult one considering that my husband and I had just purchased our first home only months before. However, after many long discussions, we both agreed to tighten our belts because the sacrifice would ultimately be worth it.
After a few months of full-time motherhood had passed, I realized that while I still wanted to be at home, I missed the stimulation of a career not to mention the income. I felt that my life had gone from one extreme (full time career) to another (full time motherhood) and I needed a more equitable balance in my life. I also wasn't completely comfortable with the notion of not contributing to the family funds when I knew that I was a capable and productive individual. I started to do some soul searching and created a mental checklist of what I enjoyed, what my abilities were, and what I was willing to invest both personally and financially in a career.
At the same time as I was evaluating my career options, I was facing a challenge all too familiar to homeowners across the country: How to find reliable home improvement contractors? I spent many afternoons waiting for plumbers who never showed and listening to pest control experts trying to sell me services that I clearly didn't need. When I finally did stumble upon a talented professional who I felt I could trust, I kept his/her name close at hand for future reference. That's when my idea for a home-based business came to me and I decided to launch Home RemediesTM.
Home Remedies of NYTM, Inc. is a comprehensive Homeowner Referral Network (HRN) which fills two important needs in the home improvement marketplace: 1) An HRN is a reliable resource for homeowners seeking dependable home improvement contractors such as painters, plumbers, carpenters, etc., and 2) It is an "outsourced" sales and marketing force for the contractors represented in the network.
On a personal level, I knew that I could make this type of business work because it would capitalize upon my sales, marketing and organizational ability as well as satisfy my desire to feel as if I was helping others in some small way. The business could be operated out of my home, would require a minimal capital investment and would provide me with the stimulation and the income I needed.
Just a few months later, after consulting with lawyers, insurance agents, accountants, family and friends, I put together a business plan and set up an office in our basement adjacent to my daughter's playroom. While the surroundings were far less glamorous than my former office in a posh midtown Manhattan duplex, they were functional and served my purposes to say the least. I scheduled my workday around my daughter's daily routine--morning TV hours and naptimes--and made the most of after dinner hours and weekends when my husband was around to help out. I found that with limited hours in the day to devote to my business, I was using my time more efficiently and was stimulated by the feeling of being productive again. It wasn't long after I had my network of contractors in place and started promoting my services that my phone was ringing with calls from homeowners!
Now, eight later, Home RemediesTM has served more than 1000 homeowners in Nassau County, New York with jobs ranging from bathroom renovations, pest control and nursery design to floor refinishing, party entertainment and chauffeur services. I've become a resource in my community for reliable independent contractors who can handle virtually any household task. The contractors represented in my network and my clients have come to value my services and best of all, my days are productive and stimulating.
When I look back at where I was just a few years ago, I realize how fortunate I am that I was able to find a balance between career and family that worked for me. Although I acknowledge that my accomplishments thus far were largely due to hard work, dedication and persistence, I also think that being able to listen to my instincts about what felt right to me and what didn't has played a large part in my success thus far. As far as the day-to-day balancing act of running a home based business and full-time motherhood, I simply try to get as much accomplished as I can each day without compromising my reason for staying at home in the first place--namely my family.
Debra Cohen is President and founder of Home Remedies of NYTM, Inc. For more information about the HRN business, visit her web site at
www.homereferralbiz.com
or contact Ms. Cohen via e-mail at
HomRemdies@aol.com
or by telephone at (516) 374-8504. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:46:47Z
Endless Potential
Staff
http://www.DrLaura.com/b/Endless-Potential
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2010-05-07T08:46:46Z
2010-05-07T08:46:46Z
Staff
2010-05-07T08:46:46Z
"Help! Im Freaking Out!"
Staff
http://www.DrLaura.com/b/Help!--Im-Freaking-Out!
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2010-05-07T08:46:43Z
2010-05-07T08:46:43Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>"Help! I#146;m Freaking Out!"
By Chellie Campbell
Author of "
The Wealthy Spirit: Daily Affirmations for Financial Stress Reduction
"
www.chellie.com
Chellie@chellie.com
"The Universe is responding to you in your NOW. So whatever you're feeling right NOW means that is what you are sending out vibrationally right NOW, which means that is what you are attracting to yourself right NOW, which means your future is FULL of a bunch of stuff that is gonna feel pretty much like right NOW feels." Abraham-Hicks
Jenny, a bright and energetic producer/director emailed me in panic mode: #147;Have a minute to talk? I am stalled again, and I'm freaking! Am I ever gonna figure this stuff out?#148;
I#146;ve been getting a bunch of these calls lately#151;every entrepreneur faces this feeling now and then. Your biggest client cancels. The computer develops some new strain of virus and it#146;s going to cost you in money and time to fix it. You#146;ve called 25 client prospects and all of them said, #147;No, thanks.#148; Now how are you going to pay the rent? The specter of the bag lady once again looms in your future and you want to scream. So what do you do when panic strikes?
I know life gets tough sometimes. It#146;s hard to keep the faith, keep doing affirmations, and keep sending out ships when storms are blowing and it seems every ship sinks just outside the harbor. But that is all there is. There is no magic answer but that one. It is only your will and determination to succeed that will keep you going. You don#146;t try things to see if they will work out#151;you determine what you want to happen and you dedicate yourself to doing whatever it takes to make that happen. To say, #147;I#146;ll give this six months and see what happens#148; is not a mind-set that works.
Freaking out is a HABIT. It feels comfortable because it is a HABIT. You are a freak-out junkie because it's a HABIT. Relax. God has a plan and you're on it. Trust. Do what you're supposed to do and expect you're good.
If you need better skills in your chosen profession, take classes, read books, get a mentor or partner in the business who knows more than you. If you don't have enough clients, join a networking group, chamber of commerce, or start cold calling (oops, I mean GOLD calling) from the telephone book. People are always asking me, #147;How many meetings should I go to?#148; or #147;How many calls do I have to make?#148; My answer is: #147;As many as it takes to get the number of clients you want!#148; I make 75 phone calls a week for approximately 6 weeks prior to my workshop, and have about 35-40 enrollment conversations per week. I keep a ships log of statistics on my phone calls, so I know that#146;s what it takes to get my workshop filled. Your money is out there waiting for you, but you have to go get it.
Affirmations work. The hardest time to do them is when you most need to do them. And you have to act your way into feeling happy and rich while you#146;re doing them! Your subconscious mind can#146;t tell the difference between the truth and a lie. So, eventually, what you tell it actually becomes true. But you can#146;t do affirmations for 5 minutes and then FREAK OUT for the other 23 hours and 55 minutes and expect FEEL GROOVY to magically descend upon you. You have to stop feeling the panic, as cushy and fine as it might feel to be a blameless victim of circumstance. Take responsibility. Picture what you want and feel good about already having it. That#146;s faith and belief in action. What you want shows up after that, not before.
So I called Jenny, and after about 2 minutes of sympathy, I asked, #147;So how many phone calls did you make last week?#148; She hemmed and hawed and talked about emails, and I said, #147;How many phone calls?#148; #147;Um, three#133;#148; she answered. #147;I#146;m going to hang up now,#148; I said gently. #147;Call me back when you#146;ve made fifty.#148;
Today#146;s Affirmation: #147;I have the happy habit and all good things are mine!#148;
Chellie Campbell is the author of
The Wealthy Spirit: Daily Affirmations for Financial Stress Reduction
, selected as one of Dr. Laura#146;s book recommendations in March, 2003. She created and teaches the
Financial Stress Reductionreg; Workshops
on which her book is based in the Los Angeles area and gives programs throughout the country. Her free e-newsletter is available at
www.chellie.com
. Permission granted for use on Dr.Laura.com.
Staff
2010-05-07T08:46:43Z
Working at Home
Staff
http://www.DrLaura.com/b/Working-at-Home
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2010-05-07T08:46:41Z
2010-05-07T08:46:41Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Working at Home
By Jonni McCoy
www.miserlymoms.com
Some people who work at home say it's a great way to supplement family income and be with their kids at the same time. Others have found it difficult to balance work and home responsibilities. Which category do you fit in? In order to answer that question, read on.
Before starting a home business, there are a few things you need to consider. For example, make sure you know how many hours you could devote to a job within your home.
With some types of home businesses, it#146;s hard to be specific about how much time you'll need. These businesses are "job specific," which means that the employer wants a specific job to be done by a specific time. He or she can't tell you how much time will be required.
This is often the case with word processing, transcriptions, manual editing, and so forth. If you're considering this type of job, be honest with yourself.
Carefully evaluate the work and make an honest assessment of your work speed. Make sure you allow for the last-minute changes that come with this type of work.
When assessing your ability to work at home, make sure the attention you can give to your job is undivided attention. Often, people who are home with small children are bored. As a result, they believe they have time available for productive work. In reality, they usually have just a few minutes here and there.
Are you part of this group? The key is to determine the "concentration factor" of your time at home. How much time can you give to your job without interruptions.
I remember taking on work at home when my children were small. I ended up starting the work after everyone was in bed and continuing into the night. That was the only time I could concentrate on my work without interruptions.
Of course, you could start a home business and tell your children to leave you alone. But wouldn't that defeat your purpose for being a stay-at-home parent?
If you find that you can give a job undivided attention, the next step is to determine the expenses it involves. Is there any equipment necessary to do the work? If the job is editing or word processing, do you have the same type of computer and software that your prospective employer uses?
Are there weekly meetings that this employer wants you to attend? Do you have reliable child care for those meetings? Will you need any special training in order to do the job? Who will pay for the training and your child care during that time? Will you need office supplies?
In addition, will the profit (after taxes) justify these expenses? Understanding the tax requirements that working will bring is essential. Will it increase your tax bracket when your income is combined with your spouses? Most likely you will be an independent contractor rather than an employee. Self-employment brings an extra tax that you will have to pay when you file taxes. Allow for this expense. You may also need to file estimated taxes throughout the year for the extra income not included in your W2s.
If working at home still sounds good to you, choosing a career is all that's left.
Some ideas for jobs include word processing, cake decorating, calligraphy, sales of home products, answering service, aerobics instructor, accountant/bookkeeper, mystery shopper, catering, antique repair, baby gift baskets, balloon delivery, and hair stylist.
Places to find these jobs vary. Start by checking employment in local newspapers or looking for job notices posted in stores. Create a flyer for yourself and your business and deliver it to the companies that could use your services.
One last thing to consider is support. Getting support while working at home is helpful, since you may feel lonely. Support groups exist for work-at-home moms (WAHM). They provide tips for making home businesses work, and they also offer a forum for your questions.
Jonni McCoy and her family live in Colorado Springs, Colorado. She is the author of Miserly Moms, Frugal Families - Making the Most of Your Hard-Earned Money, and Miserly Meals. You can visit her website at
www.miserlymoms.com
. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:46:41Z
1 - 2 - 3 Steps To Business
Staff
http://www.DrLaura.com/b/1---2---3-Steps-To-Business
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2010-05-07T08:46:40Z
2010-05-07T08:46:40Z
Staff
2010-05-07T08:46:40Z
19 Ways to Increase Your Web Site Traffic
Staff
http://www.DrLaura.com/b/19-Ways-to-Increase-Your-Web-Site-Traffic
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2010-05-07T08:46:36Z
2010-05-07T08:46:36Z
Staff
2010-05-07T08:46:36Z
Choosing a Business
Staff
http://www.DrLaura.com/b/Choosing-a-Business
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2010-05-07T08:46:35Z
2010-05-07T08:46:35Z
Staff
2010-05-07T08:46:35Z
Meet Your New Partner: Your Partner's Ex-Spouse's Boyfriend
Staff
http://www.DrLaura.com/b/Meet-Your-New-Partner:-Your-Partners-Ex-Spouses-Boyfriend
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2010-05-07T08:46:31Z
2010-05-07T08:46:31Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Meet Your New Partner: Your Partner's Ex-Spouse's Boyfriend
Cliff Ennico
www.creators.com
#147;A partner and I have been running a small service business for the past five years. I have known for some time that my partner#146;s marriage was in trouble, but apparently he just discovered his wife has had a boyfriend for a long, long time. Divorce proceedings have begun. While my partner and I get along very well, I#146;m really concerned that my partner#146;s wife will get a piece of our business, and that we#146;ll have to deal not only with her but the boyfriend as well. Is there anything we can do to prevent them from getting a piece of our business, short of buying my partner out entirely?#148;
Most business owners know that if you have partners, it#146;s a good idea to have your attorney prepare a #147;Buy-Sell Agreement#148; that will protect you, and the business, in the event one of you dies, becomes disabled, or makes an #147;involuntary transfer#148; of their ownership interest in the business (such as a bankruptcy filing). The trouble is that many Buy-Sell Agreement forms attorneys use are out of date, and don#146;t provide for a solution in the event a partner becomes divorced and his ex-spouse is awarded a piece of the business as part of the divorce settlement. Under modern divorce law, where judges have tremendous power to divide assets any way they wish to achieve a fair and equitable settlement, there#146;s a good chance your partner#146;s wife could be awarded a piece of your business if you and your partner don#146;t take action now.
Dodie Theune, a Senior Vice President of the Bryn Mawr Trust Company in Bryn Mawr, Pennsylvania (
dtheune@bmtc.com
), says there#146;s a ray of hope in this situation. #147;When there#146;s a divorce, the lawyers go through a laundry list of every asset the couple has, and a lot of horse-trading goes on,#148; Theune explains, adding #147;the one asset nobody wants to get in the divorce is one-half, or in this case one-quarter, of a business they don#146;t know anything about.#148; So the first thing your partner should do is offer to give his spouse the beach house or the stock portfolio in exchange for whatever piece of your business the divorce court would otherwise give her. If the assets are worth roughly the same as your partner#146;s interest in the business, and the spouse clearly wants them more than the business, there#146;s an excellent chance the divorce court will bless the #147;swap#148; and you can go on with business as usual.
But what if there is no beach house or stock portfolio, and your partner#146;s interest in the business is the biggest asset worth going after?
In that case, Theune believes, you have to step in and work the situation out with your partner. #147;Perhaps the two partners can look to the business for some assets that can be offered to the spouse instead of an interest in the business,#148; suggests Theune. The business would loan these assets to the divorcing partner, who would then pay back the loan with interest (make sure the divorcing partner signs a legal #147;promissory note#148; or IOU promising to pay the loan back).
If the business is cash-poor, you and your partner could take out a loan in order to free up some funds to pay off the spouse. In that case, Theune advises that the two of you sign a #147;side agreement#148; that the divorcing partner will be responsible for paying off the loan out of his share of the business profits.
Obviously, the best time to deal with this situation is well before a partner begins divorce proceedings. In any partnership, all partners need to be candid with each other about how strong (or weak) their marriages are, and whether or not they have enough assets of their own to deal with a divorce, separation or any marital nastiness. If they don#146;t, then maybe they shouldn#146;t be a partner in the business. Don#146;t wait for the divorce to happen #150; buy your partner out now for fair market value, and make him or her an employee going forward. A divorcing employee#146;s spouse can attach his or her wages (maybe), but they can#146;t claim an ownership interest the employee doesn#146;t have.
You could have a financially weak partner sign an agreement allowing the other partners to buy his stake out in the event of divorce, but divorce courts in many states will look at these agreements with a magnifying glass to make sure they don#146;t cheat the partner#146;s spouse out of a fair settlement.
As Theune points out, #147;when you deal with partners, you want to know that they have enough money so that no matter what happens in their personal lives, the business will not go on the chopping block.#148; If they don#146;t, then they shouldn#146;t be partners. Period.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC.
Staff
2010-05-07T08:46:31Z
Why Blog?
Staff
http://www.DrLaura.com/b/Why-Blog
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2010-05-07T08:46:29Z
2010-05-07T08:46:29Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Why Blog?
It seems everyone these days is talking about blogging. Everywhere I go, I find articles and forums devoted to this craze. I also have heard from many moms who are trying to figure out what a blog is and how they can use one to their benefit.
The term #147;blog#148; is short for #147;weblog#148;, which just means an online journal or #147;log#148;. You can jot down personal thoughts and notes, post articles you#146;ve written or keep track of interesting websites you find. The sky is the limit, it seems, when it comes to blogging. A blog is something entirely of your own creation and you can use it to share your thoughts with the world, well#133;.with anyone you can get to read it anyway.
One of the main debates going on about blogs is whether blogging can be done to improve Search Engine rankings for businesses or to create a buzz about business websites. Both of these can be true if the blog is used correctly. Many resources show that once a blog is created, many times it is listed in Search Engines within 48 hours. This was true of the blog I created for Christian Work at Home Moms.
These are many ways to create a blog. The easiest by far is to use one of the free tools available online, such as Google#146;s Blogger. You can create your blog for free using their online tools and templates(nothing to download). After you have created the blog, you can then publish your blog through them and #147;Wa-La#148; #150; your blog is posted online for the world to see.
Once you#146;ve created your blog, you will need to decide how you will use it. Will it be a personal blog, full of thoughts and comments for yourself alone or maybe your family? Or will it be a business blog, with articles and tips for potential customers? If you want your blog to be found by others, blogging experts recommend that you begin by setting the title and descriptions for your blog. These are similar to the the title and descriptions you set for your website. Try to make them meaningful because they are what people will see when your blog is returned in a Search Engine. If your description is simply #147;my blog#148;, you may not draw the attention you#146;d like.
If you are blogging in the hopes of attracting customers, make sure to use wise use of words and links in your blogs. Try to avoid the #147;click here#148; link. Instead, opt for links within descriptive sentences. Add the HTML link within the sentence and attach it to the words that are closely related to the page or site you are linking to. For example, to link to my website I would not use #147;click here#148; as my link. I would say, #147;Please visit Christian Work at Home Moms for home-based work resources.#148;
There are many ways to get your blog noticed outside of optimizing them for Search Engines. For instance, there are entire websites devoted to listing blogs dedicated to any topic that you can think of. One of the best such websites devoted to women-created blogs, is BlogDaisy.com. You can also use free tools such a FeedBurner.com to track the traffic on your blog and to create a dynamic title box that can be used to display your blog headlines on your website or even in your email signature. Each time you update your blog, these headlines are instantly updated.
There are many ways to use a blog for either personal or business use. If used correctly, a blog can be a terrific tool to inform potential customers of your business. Be sure to update your blog at least once a week so that the content remains fresh and you remain in the Search Engines.
Jill is the author/editor of Christian Work at Home Moms,
CWAHM.com
, and can be reached by emailing
jill@cwahm.com
.
Free to distribute if bio is kept intact. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:46:29Z
Dont Give Up -- Two Secrets to Success At Home: Creativity & Persistence
Staff
http://www.DrLaura.com/b/Dont-Give-Up----Two-Secrets-to-Success-At-Home:-Creativity--Persistence
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2010-05-07T08:46:26Z
2010-05-07T08:46:26Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Don#146;t Give Up -- Two Secrets to Success At Home
Creativity Persistence
Working from home can be a very rewarding decision. There are many benefits including freedom to create your own schedule, choosing the type of business that you want to represent, and being able to raise your children yourself. However, running a business can also become a very stressful situation. It takes time to build a successful home-based business and many entrepreneurs become discouraged if they don#146;t achieve immediate results. Often times they give up too soon and regret it later. This doesn#146;t have to happen to you. Let us share with you what we found to be two secrets to help you achieve success at home.
One important thing that many work-at-home moms do not recognize is that it can take six months to a year at minimum for your business to be successful financially. If you are aware of this going into the business and have planned accordingly, then you are already one step ahead of the game and won#146;t become unnecessarily discouraged.
Also, be aware that the time frame it takes to start a business will vary depending on the type of business that you are starting. For example, for those that are starting in direct sales, you may be able to jump in, hold some home parties, and see an income right away. In this case, then you just need to focus on maintaining this income to keep it successful.
However, if you are starting an Internet business selling your own products or services, it may take much longer to see the fruits of your labor. For some, it can take a year or even two to create a #147;presence#148; online and for people to recognize and seek out your products. You will find that the benefits are well worth the time and effort in the end, but it can be discouraging waiting to see a profit.
So, how does a person make it in the work-at-home world? I think the two most important aspects of running your own business from home are creativity and persistence.
Creativity#151;Be creative in how you market your products and/or services. Start by thinking of ways that you can reach customers that will make you stand out from others who offer similar types of products. Design contests, free offers and other types of marketing strategies that will bring customers to your website. Then, try to determine what your customers are looking for once they reach your website and offer the most popular products on your front page. Keep in mind that it#146;s important to keep your website fresh so consider changing the items or text on your website#146;s front page often, so that you pique the interest of your customers each time they visit and they will want to come back.
Persistence#151;This is key when you are running a business from home. Don#146;t start out strong marketing yourself in every way possible and then simply stop marketing because you haven#146;t seen many sales. Most profitable businesses must continually be marketing their services to keep it successful. Try to think of a successful business that does no advertising. Can they just sit back and let the sales roll in from their website? No, it just doesn#146;t work that way. EVERY business must continue to advertise in some way to stay successful. We have found at CWAHM.com that those that achieve the most success are the consistent advertisers.
This does not mean that you must spend hundreds of dollars a month to advertise your home-based business. What it does mean is that you must be persistent in the advertising that you choose to do. Budget your advertising dollars in a way that you can do a small amount consistently. Get involved in groups online and ask advice from other successful moms. Whatever you do, don#146;t stop talking about your business!
And most importantly, don#146;t give up! Success IS possible. Take the time to be creative in how you are marketing your business. Be persistent and don#146;t expect profits immediately. Set realistic goals for your business and be patient while your business grows into something you can be proud of. Soon you#146;ll be among the millions of work-at-home moms who are enjoying it all: being home with the kids, financial freedom, and the pride of having their own home-based business.
Jill is the author/editor of Christian Work at Home Moms,
CWAHM.com
, and can be reached by emailing
jill@cwahm.com
.
Free to distribute if bio is kept intact. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:46:26Z
50 Business Tips
Staff
http://www.DrLaura.com/b/50-Business-Tips
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2010-05-07T08:46:25Z
2010-05-07T08:46:25Z
Staff
2010-05-07T08:46:25Z
Do What You Do Best!
Staff
http://www.DrLaura.com/b/Do-What-You-Do-Best!
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2010-05-07T08:46:25Z
2010-05-07T08:46:25Z
Staff
2010-05-07T08:46:25Z
Are You Cut Out to Be a Landlord?
Staff
http://www.DrLaura.com/b/Are-You-Cut-Out-to-Be-a-Landlord
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2010-05-07T08:46:23Z
2010-05-07T08:46:23Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Are You Cut Out to Be a Landlord?
by Candace Bahr, CEA, CDFA and Ginita Wall, CPA, CFPreg;
www.WIFE.org
www.MoneyClubs.com
There are many benefits to investing in rental property: the rental income, the tax write-offs, and the increase in value over the years.
But there are drawbacks as well. Being a landlord involves more than simply buying property, finding a tenant, and letting the cash flow in. Some people are very comfortable with the kinds of activities that landlords face almost daily. Others find them very difficult. Answer the questions below with a "YES" or "NO" to see if you have what it takes to be a landlord:
Do you deal well with people on a regular basis?
Do you deal well with risk?
Do you enjoy taking care of your own home?
Are real estate prices appreciating in your area (or do you expect them to in the future)?
Do you have spare cash (or home equity) to invest?
Are you good at keeping records and completing paperwork?
Do you have free time to spend on real estate investing?
Do you have any small business experience?
Can you juggle several tasks at the same time?
Are you willing to do repairs and maintenance yourself or are you willing to pay someone to have them done?
If the monthly expenses are greater than the rents, do you have the financial staying power to cover those expenses, year after year?
If the property becomes vacant for a month or more, do you have the resources to cover the mortgage payment?
Will you be able to manage the property on your own?
Have you talked with other local landlords about their experiences and challenges?
Will you treat this like a business, raising rents when market conditions allow?
Would you feel comfortable evicting a family with five hungry children if they didn't pay the rent?
If you can answer #147;Yes!#148; to more than five of the above questions, then you may have the personality and skills needed to be a successful landlord. Real estate investment, over the long haul, can be a very rewarding activity, but it takes work and time.
Cofounders of the nonprofit Women#146;s Institute for Financial Education (
www.WIFE.org
) and the new Money Club for women (
www.MoneyClubs.com
), Candace Bahr, CEA, CDFA and Ginita Wall, CPA, CFPreg; are trusted financial guides for millions of women. Both authors are nationally-recognized experts on women and money and regularly appear on CNN and CNBC and in national financial and women#146;s publications. This article is excerpted from their book
It#146;s More Than Money#151;It#146;s Your Life! The New Money Club for Women
(John Wiley, 2004). Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:46:23Z
Once An Employee, Now A Partner
Staff
http://www.DrLaura.com/b/Once-An-Employee,-Now-A-Partner
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2010-05-07T08:46:20Z
2010-05-07T08:46:20Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Once An Employee, Now A Partner
by Cliff Ennico
www.creators.com
.
This article deals with the delicate subject of how to make an employee your business partner.
#147;I run a small hardware store in the Midwest. For years I have employed a young fellow as a clerk-slash-assistant manager. Last year I became suddenly ill, and couldn#146;t work for several months. My employee really took charge and ran every aspect of the business so well our profits actually increased during my absence! Needless to say, I#146;m very grateful to this employee, and I really want to marry the guy. We have agreed to form a limited liability company (LLC) for the business, and that we split everything 50-50 from day one. My accountant had a conniption, however, when I told him about our agreement. How can I do the right thing by this employee, to whom I owe an awful lot?#148;
Well, your accountant shouldn#146;t have freaked out, but I understand his concern. The problem is our wonderful Tax Code, which will require your employee-slash-partner to pay something for his 50% interest in the LLC with money he presumably does not have.
Let#146;s say your business is worth $100,000 right now. You form your LLC, contribute your $100,000 in assets to the LLC capital, and take back a 50% interest. That means your employee, in order to justify a 50% ownership stake, has to contribute $100,000 to the LLC capital as well. If he doesn#146;t, he will be considered to have received a $100,000 #147;gift#148; from you, and he will have to pay taxes on that. Unfortunately, the IRS puts a zero value on his past (admittedly wonderful) services to your business, since you already paid him for those when he was an employee. Likewise, his future services to the LLC won#146;t count towards the $100,000 value of his 50% stake.
There is a way to do what you want to do, if your employee is willing to go along. You can form the LLC, contribute your $100,000 in business assets to the LLC capital, and split the ownership 50/50 with your employee, but include a #147;preferred distribution#148; clause in your LLC Operating Agreement (that#146;s like a partnership agreement between you and the employee). A #147;preferred distribution#148; clause says that notwithstanding your agreement to split everything 50/50 with the employee, for a limited time you will be entitled to take out 75% or 80% of the LLC profits until such time as these #147;excess cash distributions#148; total $100,000 plus interest at a reasonable rate (5% or 6% per annum at the time this article is being written).
By doing this, you and the employee will be 50/50 owners from day one, and the employee will #147;buy#148; his way into the business by giving you the #147;preferred distributions#148;. Once your 25% or 30% #147;preferred distributions#148; total $100,000 plus interest, the #147;preferred distributions#148; will cease and each of you will be entitled to take 50% out of the business#146; profits each year. It#146;s the same as if you had loaned the employee $100,000 to buy his 50% of the business, and he is repaying the loan with interest out of his 50% share of the LLC profits.
Of course, you need to make sure your employee can live on the 20% to 25% of the LLC profits remaining after your #147;preferred distributions#148;. You should also check with your accountant to make sure each of you will be taxed on only the income you actually receive from the LLC -- in other words, that your employee will be taxed only on the 20% to 25% of the LLC profits he actually receives during the first few years, not the full 50% to which he is entitled under the LLC Operating Agreement. If that#146;s a problem, you will have to come up with a creative way to get money back into the employee#146;s hands so he can pay taxes on the #147;phantom income#148; (the difference between his 50% share and the 20% to 25% he actually receives).
Don#146;t forget to have your lawyer draw up a Buy-Sell Agreement between you and your new partner #150; this will protect both of you in the event one of you dies, becomes disabled, retires or otherwise ceases to become actively involved in the business at an inconvenient time. If you#146;re new partner is significantly younger than you (as I suspect from your e-mail), I would also take out a policy of life insurance on him, naming yourself as beneficiary. That way, if something bad happens to him, you can use the proceeds of the policy to buy back his 50% interest in the LLC without having to dip into the LLC#146;s operating capital.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED By: Creators Syndicate. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:46:20Z
Succeeding In The Face Of Terror
Staff
http://www.DrLaura.com/b/Succeeding-In-The-Face-Of-Terror
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2010-05-07T08:46:17Z
2010-05-07T08:46:17Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Succeeding In The Face Of Terror
www.creators.com
When you write a weekly column for business owners, you get lots of business books in the mail. Most fall into two broad categories:
#147;how to#148; books designed to teach you specific business skills in a user-friendly way (examples: #147;Step by Step Guide to Project Management#148;, #147;Selling Internationally on eBay#148;); and
#147;entertainment#148; books designed to package well-worn material in a colorful way, for those of us (and we know who we are) who have little patience for fiction and want to actually learn something while lounging on the beach in Barbados (examples: #147;Leadership Secrets of Some Obscure Historical Figure or Literary Character You Vaguely Remember Reading About in High School#148;, #147;What Being a Pro Squash Player Teaches You About Your Management Style#148;).
Every so often, though, a book comes along that is truly important, and says something compelling about the business world that isn#146;t being said in the more #147;popular#148; business literature. When such a book comes along #150; and it#146;s a rare occasion -- I feel the need to write about it.
If today#146;s headlines worry you, and you wonder how terrorism will affect our world in the coming decades, then you need to pick up a copy of #147;Business Under Fire#148; by Dan Carrison (AMACOM Books, $24.95 hardcover). The book#146;s subtitle says it all: #147;How Israeli Companies Are Succeeding in the Face of Terror #150; and What We Can Learn From Them.#148;
If there#146;s one place in the world where terrorism is a daily threat to everyday life, it#146;s Israel. In a tiny nation the size of New Jersey (not even), just about everyone knows someone who has lost a loved one to a Molotov cocktail or a suicide bomber. Still, day in and day out, Israelis go to work and run successful, sometimes world-class, businesses. How do they do it?
Carrison#146;s book contains exhaustive interviews with prominent business leaders, managers and employees in a variety of Israeli industries, and offers a powerful, pragmatic and urgent guide for American business owners, even if (as we all hope) terror never strikes the United States with the punishing regularity experienced in Israel.
Some of Carrison#146;s advice for coping with terror threats in the business world:
#147;Plan for flexibility#148;. Make terrorism planning a part of every business decision. When flexibility becomes part of each business plan, change is less likely to be seen, by customers or employees, as an uncontrollable response to outside forces.
#147;Be driven and defiant#148;. A business does not have to be located in a war zone to benefit from the passions of its employees. Managers should not shy away from promoting a healthy defiance, a hunger to prove that wary investors and fair-weather customers are wrong.
#147;Develop a contingency plan#148;. Decide exactly what will happen if a terrorist attack wipes out a key location, or kills a key employee, and share it with your investors, employees and customers.
#147;Focus on today#148;. In the midst of a terror crisis, the future is often assured by successive victories in the here-and-now. By continually achieving short-term results, you inspire confidence in those that otherwise would balk at dealing with you.
#147;Let security speak for itself#148;. Forget hidden cameras and undercover officers. Get security out of the closet, and keep it in the open. When obvious security procedures are established, the word gets around to terrorists as well as customers.
#147;Memorialize the victims.#148; When an act of violence claims lives, a memorial performs a public service, reminding all customers and passers-by to remain vigilant. It also reinforces the company#146;s stand against terrorism and respect for individuals.
As in other areas of the business world, the best defense against terrorist threats is a good offense. Surprise is a terrorist#146;s most effective weapon #150; doing whatever you can to take the element of surprise out of terror activities sends a strong message to the bad guys that they won#146;t win, that you are not willing to live in fear.
Or as someone famous once said, #147;the coward dies a thousand deaths, the brave person dies just once.#148;
.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:46:17Z
New Year's Business Resolutions For 2005
Staff
http://www.DrLaura.com/b/New-Years-Business-Resolutions-For-2005
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2010-05-07T08:46:14Z
2010-05-07T08:46:14Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>New Year's Resolutions For 2005
Here are six New Year#146;s Resolutions for business owners
www.creators.com
For eBay Businesses, Get More High-Quality Stuff from Estates
. If your business is selling stuff on eBayreg;, one of your biggest challenges is finding high quality stuff to sell at a profit. Here#146;s a tip #150; get to know your local #147;trusts and estates#148; attorneys. These are the lawyers who draw up people#146;s wills and probate their estates when they die. Very often, these lawyers are approached by grieving relatives who need help #147;disposing of Mom#146;s stuff#148;, but the estate is too small to justify hiring a big estate auction firm like Sotheby#146;s or Christie#146;s. Why not let these attorneys know that you are available to help them sell their clients#146; small estates on eBay, for a consignment fee of course? I almost guarantee your competition hasn#146;t thought of that (unless they read this column), and that you will find a warm welcome here if you make the effort. For a listing of your local #147;trusts and estates#148; lawyers, call you#146;re local or state bar association.
Renew Your Web Address.
If your business is dependent on the Internet, make sure you check Network Solutions (
www.networksolutions.com
) at least once each year to make sure your Web address hasn#146;t expired. They do send you renewal notices, but often these get picked up as #147;spam#148; by your antispam software, so you never see them, your Web address expires and gets grabbed by someone else. Pick a date that#146;s easy to remember #150; like your birthday #150; and renew each of your important Web addresses on that day.
Update Your Software Twice a Year
. Just about every software program gets updated at least once or twice a year, but not every software developer sends you an e-mail announcing the latest updates. Make it a point to visit the Website #147;home page#148;, of each software company whose products you license, and look for a button that says #147;check for updates#148; or something like that. It just may save your PC.
Sheath Your Cell Phone
. Make 2005 the year you stop being a #147;cell phone slave#148;. Make some rules about when you will use your cell phone, and when you won#146;t, and stick to them. Among those I highly recommend: do not use your cell phone while driving a motor vehicle; use your cell phone only for outgoing business calls; do not use your cell phone in public places where your conversation may be overhead by total strangers with evil on their minds.
Get Some Free Local Publicity
. Do at least one thing this year that gets your business written up in the local news media (in a positive way, that is!). Donate something to charity, sponsor a local contest for school kids, run for local political office if you have the stomach for it, and make sure your local news media know about it. Anything that a news reporter will find newsworthy, and that gets you quoted as #147;Joe Blow, owner of Joe#146;s Deli on Main Street#148;.
Get Involved in Government
. Whatever your political views, if you don#146;t like taxes or government regulations that stifle your business, complaining about them and voting against them just isn#146;t enough. If you don#146;t have time to attend board meetings or hearings, find the time. Join the same organizations (like your local Rotary or Kiwanis) that your local #147;politicos#148; join, and make sure they know you are there. As my Dad used to say, you are only as good as the nonsense you tolerate in life. If government nonsense just #147;burns your breakfast#148;, stop tolerating it, become an activist, and help government come up with better solutions that will benefit, not harm, your business.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2005 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:46:14Z
Do You Really Need A Business Plan?
Staff
http://www.DrLaura.com/b/Do-You-Really-Need-A-Business-Plan
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2010-05-07T08:46:11Z
2010-05-07T08:46:11Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Do You Really Need A Business Plan?
www.creators.com
#147;I am new to this country, and am taking a class in the evenings on how to start my own business. I understand that you need a tax ID number and that it#146;s a good idea to form a corporation or limited liability company (LLC) to protect myself from lawsuits. At what point in the process, though, should I prepare the business plan? Do I have to file that document anywhere?#148;
Please don#146;t laugh at this fellow #150; go to the #147;small business#148; section of any major bookstore and you will see dozens, if not hundreds, of different books on how to prepare a business plan. You can#146;t blame anyone #150; not just recent immigrants, either -- for thinking that a business plan is a legal requirement in this country, and that you shouldn#146;t even consider starting a business without first preparing a 100-page treatise with numbered sections, index tabs, and the whole she-bang.
Of course, business plans are not a legal requirement, and they don#146;t have to be filed with any government agency. There are two kinds #150; an #147;operating#148; business plan and a #147;financial#148; business plan. The operating business plan is a very informal document #150; it doesn#146;t even have to be in writing, although I suggest that writing it down is good discipline and forces you to think about things you otherwise would overlook. Basically, the operating business plan has four parts:
A Marketing Plan, that answers the questions: who are my customers? What fears, passions and other emotions motivate them to buy anything? How do my products or services key in to those fears, passions and other emotions (in other words, to use an MBA phrase, #147;what is the value proposition?#148;). How do I get the message across to my customers? This part always comes first, because without customers, you don#146;t have a business. You have a hobby.
A Competitive Strategy Plan, that answers the questions: Who (or what) are my competitors? How are my products or services better, faster, cheaper, more convenient than theirs #150; in other words, where am I stronger than they are? If you can#146;t beat the competition, your only choice is to join them, or quit.
A Financial Plan, that answers the questions: What are the costs of running this business, and how many sales at what prices must I make in order to cover those costs and make a profit? What must I need to take out of the business in order to survive in the style to which I have become accustomed, and how long will it take me to get there? Will I have to borrow money to grow this business, and if so, when and how much?
Finally, a Risk Assessment Plan, that answers the questions: What are the risks of this business? Can I cover them with insurance? Will I need to form a legal entity to protect myself against my creditors? What legal documents will I need to use in this business to make sure people don#146;t try to cheat me?
The time to prepare an #147;operating#148; business plan is after you get the idea for the business, and well before you launch the business. You should keep it to yourself (and your business partners, if you have any), because the stuff in here can do you real damage if it gets into the wrong hands.
Unlike the #147;operating#148; business plan, the #147;financial#148; business plan is a formal document that must be in writing. This is the business plan you will show to prospective investors, banks and other people when you are out looking for money to grow your business. This is the business plan all of the #147;business plan#148; books in your local bookstore are about, and make no mistake #150; it has to look a certain way, or else these people will not take you or your business seriously.
Here#146;s a tip: if you are thinking about taking out a business loan from a local bank and need to write a #147;financial#148; business plan, don#146;t buy a book and try to figure it out yourself. Instead, visit your local chapter of the Service Corps of Retired Executives, or SCORE (check out
www.score.org
to find the chapter nearest you). This is a volunteer organization of retired business people who provide free advice to local small businesses.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2004 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:46:11Z
Get a Website
Staff
http://www.DrLaura.com/b/Get-a-Website
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2010-05-07T08:46:08Z
2010-05-07T08:46:08Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Get a Website
Get a website and grow your home business!
In order to build your home based business online, you must get a website. Ok, so that seems obvious...but some things aren't so obvious. At least not at first.
If you're in direct sales or network marketing, you may have a company provided "replicator" website, meaning that yours is just like everyone else's.
That's no good. Why?
There are several reasons why you need to get a website of your own.
Get a website so that you can get free traffic.
If you get a website of your own, you can optimize if for search engines and get totally free traffic. You typically cannot change a replicated website, and if you can, the changes you can make are extremely limited. If you're serious about taking your home business online, this is a bad thing, because you will need to be able to make changes to your site in order to optimize it for search engines. (That's not as hard as it sounds, and there are resources
here
to help you.) What good is having a website if no one can find you?
Get a website so that you can be unique
Honestly, no matter how impressive the company website is, most people's eyes just glaze over when they get there. There is usually too much information, the product and opportunity are all running together, and it's difficult to contact anyone real if you have questions. It's intimidating. If you are sending traffic to a company replicated website with classified ads and business cards, you are losing money.
You want your customers going to your site so that they can get a feel for who you are, and why they should be doing business with you. You can let your personality shine through!
If you get a website of your own, you can have a newsletter to keep in touch with your website visitors, run specials of your own, have contests, etc. You can get creative with your marketing.
Get a website and get publicity for your home business
When you have a website you can create a powerful free publicity campaign with press releases. You will have a place to publish your press releases, wow your site visitors with your media attention, and also give the media a place to easily get information about your business. Get a website and the world is your market
Why limit yourself to just one geographical area when you can get a website and market to the world?
If you have young children, you can do more business from home instead of spending so much time doing the "grip and grin" around town. Of course, there is no replacement for the old fashioned, high touch feel of home parties and the like, but more and more people are searching online for the products and services they need. Why not market to those people too?
Get a website...a real one
One mistake a lot of work at home moms make is that of using the free web space that they can get from their Internet Service Provider. Big mistake. Why?
Because if a woman in business is unwilling to spend a few dollars a month on paid hosting, it screams "not a real business" to the customer. You want the world to take you and your business seriously, so act like a business person and shell out for decent web hosting.
Free hosting usually puts ads on your website that you cannot control, or annoying pop ups. At the very least, they limit what you're able to accomplish by offering cheap looking templates and cheesy stock photos. You can get a beautiful, professional looking site going in just an afternoon with the
Easy Site Builder
, and for less than $13 a month. Plus, it has all these great features that you would normally have to pay extra for: >Newsletter, auto responder and mailing list capabilities so you can stay in touch with your customers and build the relationship with them that leads to repeat sales and increased sign ups.
Attractive, quality images and photos to add to your site to catch the visitor's eye.
Hundreds of beautiful templates to choose from...no more copycat websites!
Shopping cart for e-commerce. Sell directly from your site!
Message boards, multimedia, feedback forms, coupons, 5 free emails, and much more.
No html knowledge required. You can choose from the basic editor if you like to stretch your html muscles, or the Word style or ActivEditor if you haven't the least bit of web design knowledge. If you can write an email, you can get a website with this Builder!
There is even a 10 day free trial. By the time the trial period is up you could have a gorgeous site that's making you money already. Check it out today.
Get a website so that you can earn money while you sleep
That may sound farfetched, but your website can "sell" for you, educate your customers and train your distributors, while you play with the kids, nap or clean the house. Isn't that what we're trying to accomplish with our home based business? More life and less work?
What are you waiting for?
Get a website today!
Carrie Lauth is a work from home Mom of 3 -
home businesses for moms
. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:46:08Z
Is it Time for a Priorities Check Up?
Staff
http://www.DrLaura.com/b/Is-it-Time-for-a-Priorities-Check-Up
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2010-05-07T08:46:05Z
2010-05-07T08:46:05Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Is it Time for a Priorities Check Up?
by Lesley Spencer, MSc; Founder Director:
www.HomeBasedWorkingMoms.com
Working from home is a dream to many people. And its true, it comes with many benefits. Working from home enables moms to plan their day around children's needs and schedule. Having the freedom and flexibility to attend school functions, play paper dolls at 11:00 a.m. or have an afternoon tea party in the middle of the living floor are all luxuries of working from home. Working at home is great, but be aware, priorities can get blurred.
Our society admires successful people. Many people are driven to make a lot of money or to be well known in their industry so they can be considered successful and worthy in people's eyes. However, it may be more accurate to believe we are truly successful when we are happy and content right where we are. The constant pursuit of more or envying others' possessions does not bring contentment. It brings depression and envy. If you've ever seen celebrities, who are rich and have "everything", you've probably noticed many seem empty and unhappy. Having it all isn't about money or possessions. It's about people and the relationships you build in your life. Happiness is also about being content with what we have.
A home business can consume you. If you have your own home business, you have to use caution not to let that desire for success or money consume you or make you lose focus of your priorities and the people in your life. The thought of success or making a ton of money can cause us to forget what's really important.
Thinking ahead five years, will you be most proud that you made a certain amount of money or that you enjoyed your children while they were young? Will you think back to all the rushing around and quick meals and wish you'd spent more time enjoying life? Will you have spent time together with your spouse building a strong marriage? We know good marriages don't just happen. They take work just like everything else. Will your family life be healthy or will everything be on the back burner while you make millions and become "successful"?
We must take a look at our lives and how we are living often. It is so easy to let day-to-day life consume us.
Are you happy? If not, why? Are your priorities in line? Are you placing a priority on your faith and your family or is your business consuming your life? Is it time to re-prioritize things?
Don't put your happiness and your family on the back burner. Family and our time together are too precious to waste.
Lesley Spencer is founder and director of the HBWM.com, Inc. Network which includes: the national association of Home-Based Working Moms (
www.HBWM.com
), Mom#146;s Work-at-Home Kit (
www.WorkAtHomeKit.com
), the eDirectory of Home Based Careers (
edirectoryofhomebasedcareers.com
), Mom's Work-at-Home Site (
www.momsworkathomesite.com
) and HBWM Canada (
www.hbwmcanada.com
). She has a Master's Degree in Public Relations and has been featured in numerous publications including Forbes, Wall Street Journal, USA Today, Home Office Computing, Parenting, Business Start-Ups, Family PC and many others. She has been working from home for over 9 years and has two children ages 9 and 7. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:46:05Z
10 Tips for Avoiding Home Business Scams
Staff
http://www.DrLaura.com/b/10-Tips-for-Avoiding-Home-Business-Scams
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2010-05-07T08:46:03Z
2010-05-07T08:46:03Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>10 Tips for Avoiding Home Business Scams
by Lesley Spencer, MSc; Founder Director:
www.HomeBasedWorkingMoms.com
Starting a home business has become a wonderful and attractive alternative for parents across the country. With the advent of the Internet, email and cell phones, working at home has been a very viable option. No other alternative allows parents the opportunity to create their own hours and work around their children#146;s schedules while earning an income. But before investing in any home business opportunity, it is wise to take appropriate steps to research the opportunity and the company. Unfortunately, there are deceitful businesses ready to take advantage of parent#146;s deep desire to be at home with their children.
Research the company and always check them out with the Better Business Bureau (
http://search.bbb.org/search.html
) located in their city.
Ask for at least three references of people they have worked with. Call each person and ask about his or her experiences with the company.
Be cautious of any company that asks for money for a work-at-home job (such as money for registration, applications or instructions).
Don't be fooled by ads claiming you can make large amounts of money in short periods of time. And be cautious of companies that require you to sign up immediately. If it sounds too good to be true, it usually is.
Get specific information in writing from the company such as how long they have been in business, where they are located (not just a P.O. Box), how many customers they have, what their refund policy is (read it thoroughly), how long it takes to get paid and if there are any restrictions on payments, etc.
If you do invest in a business opportunity, use your credit card instead of cash. It may be easier to dispute the charges with your credit card company rather than trying to get your money back from a fraudulent company.
Research current scams on web sites such as ScamBusters at:
www.scambusters.com
.
Call the National Fraud Information Center at (800) 876-7060 for information or visit their web site at:
www.fraud.org
.
Report any scams or fraudulent companies to the Federal Trade Commission
www.ftc.gov
, your state's Attorney General and the National Fraud Information Center, PO Box 65868, Washington, DC 20035, (800) 876-7060.
Don't invest in any opportunity that you are not sure about. Instead, find something that you are interested in and will enjoy doing. (Do what you love, and the money will follow.)
Lesley Spencer is founder and director of the HBWM.com, Inc. Network which includes: the national association of Home-Based Working Moms (
www.HBWM.com
), Mom#146;s Work-at-Home Kit (
www.WorkAtHomeKit.com
), the eDirectory of Home Based Careers (
edirectoryofhomebasedcareers.com
), Mom's Work-at-Home Site (
www.momsworkathomesite.com
) and HBWM Canada (
www.hbwmcanada.com
). She has a Master's Degree in Public Relations and has been featured in numerous publications including Forbes, Wall Street Journal, USA Today, Home Office Computing, Parenting, Business Start-Ups, Family PC and many others. She has been working from home for over 9 years and has two children ages 9 and 7. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:46:03Z
10 Money-Saving Tips for Home Businesses
Staff
http://www.DrLaura.com/b/10-Money-Saving-Tips-for-Home-Businesses
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2010-05-07T08:46:02Z
2010-05-07T08:46:02Z
Staff
2010-05-07T08:46:02Z
The Biggest "Hidden Cost" In Any Business
Staff
http://www.DrLaura.com/b/The-Biggest-Hidden-Cost-In-Any-Business
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2010-05-07T08:45:58Z
2010-05-07T08:45:58Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The Biggest "Hidden Cost" In Any Business
www.creators.com
#147;My husband and I both retired last year, and were looking to supplement our income by buying and selling things on eBay. We have been working at it about 30 hours a week for the past 10 months, but looking at our year-end results, we seem to have made only about $30,000 after expenses. Do you have any tips to help us get a better result out of this business?#148;
Boy, do I. But first I have to lay some bad news on you #150; if what you#146;ve just told me in your e-mail is true, you haven#146;t made $30,000. You have actually lost money.
The biggest #147;hidden cost#148; in any business #150; not just an eBay business #150; is the cost of your time. Time is extremely precious stuff, and is actually more valuable than money, because no one gives you any more of it once it#146;s spent.
Looking at your results, I see that you and your husband have spent 30 hours a week (that#146;s 60 hours for the both of you) for the past 10 months. Assuming an average of 4 weeks in any calendar month, that comes to a total of 2,400 hours (60 x 4 x 10). You have made only $30,000 during this 10-month period. This means each of you has been working for only $12.50 an hour ($30,000 divided by 2,400). A little bit better than minimum wage, and of course you have all of the joys and pleasures of running your own business rather than slaving for someone else, but based solely on numbers you#146;d both be better off signing on as shift managers for McDonalds.
Sure, the work at McDonalds isn#146;t very fulfilling and will not make full use of your superior education, intelligence and training, but the hours are a lot more predictable, you go home at the end of your shift (whereas when you run your own business it#146;s with you 100% of the time, all the time), and you get some basic benefits to boot.
Don#146;t get me wrong #150; I#146;m not saying you shouldn#146;t be running an eBay business out of your home. For a lot of retired folks and other #147;stay at home#148; types, eBay is an absolute God-send for making some extra bucks in your spare time (full disclosure #150; I am on the faculty of eBay University and travel the country teaching people how to do just that).
But running an eBay business is extremely #147;labor intensive#148;. That means you need to put in a lot of person-hours. Think of all the individual, separate activities you have to do to make an eBay business successful. Here are some examples, and I#146;m sure you can think of more:
going to flea markets, tag sales, garage sales, estate sales, liquidation sales, police auctions and Heaven-only-knows-why sales to find affordable stuff you can sell on eBay;
photographing each item;
researching the price of each item on eBay;
finding out enough about each item so you can write a halfway-decent description in your auction page;
keeping records of your inventory, so you know just what you#146;ve got in stock at all times;
creating your auction pages, one at a time;
packaging each item;
weighing each item and determining the postage and insurance costs;
sending customized e-mail messages to the successful bidders;
entering each successful auction on QuickBooksreg; or your favorite accounting program;
standing on line at the Post Office, or your neighborhood UPS Store, making sure the stuff gets shipped out the right way.
Man, I#146;m getting tired just writing all that!
If you#146;re going to be a success on eBay, you#146;ve got to learn to make the most of your time, which means doing things in such a way that you can put up the maximum number of auctions in the minimum amount of time. Marsha Collier, who writes the #147;eBay for Dummies#148; series of how-to books (
www.coolebaytools.com
), has a few tips, among many others:
make sure you#146;re selling stuff that gives you big profits #150; if you#146;re only making $1.00 profit on each item, you#146;re going to have to post hundreds of individual auctions before you see a real return on your investment of time;
if you#146;re posting a lot of auctions, use #147;auction management#148; software programs such as
www.auctionhelper.com
,
www.auctionworks.com
and
www.manageauctions.com
, to save time and #147;standardize#148; the process of posting auctions so you can #150; forgive me #150; grind them out like sausages;
use a standardized auction page #150; call your local community college#146;s Graphic Design department and have one of their seniors (preferably an #147;honors#148; student) design a standard template for you, and use it in each of your eBay auctions so you only have to #147;fill in the blanks#148; with each new auction (this will also give your auctions a distinctive #147;look and feel#148; which can set you apart from your competitors);
use eBay#146;s #147;relist#148; option when an item doesn#146;t sell so you can get it back in circulation fast with only a few changes (such as a better photo or a lower reserve price).
Remember that your time is the biggest #147;hidden cost#148; in any business. None of us is getting any younger, folks, and I don#146;t want to spend my Golden Years pouring plastic peanuts into cardboard boxes, no matter how much fun it may be the first couple of hundred times.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2004 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:45:58Z
The Three Keys To Success In A Service Business
Staff
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2010-05-07T08:45:55Z
2010-05-07T08:45:55Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The Three Keys To Success In A Service Business
Cliff Ennico
cennico@legalcareer.com
A lot of downsized executives from corporate America are looking to start consulting practices these days, and a majority of them want to go back to corporate America and pitch themselves as #147;independent contractors#148; doing the same old job they used to do as corporate employees.
A lot of them are disappointed, though, when they find out their old companies won#146;t hire independent contractors to do these jobs, because these jobs either are no longer necessary (due to advances in information technology), or are so sensitive that they can be handled properly by full-time employees.
Still, it isn#146;t impossible to work for corporate America as an independent contractor or 1099. You just have to be a little more flexible in the type of work you accept.
A frequent complaint I hear from consultants-who-were-once-corporate-executives is #147;gee, I am getting work from corporate clients, but the projects are really dogs, the lowest of the low, involving long hours and really mind-numbing detail work.#148;
Well, here#146;s a news flash for you: corporations (like all customers) don#146;t want to delegate the fun stuff. The work that#146;s enjoyable, fun, sexy, state of the art, ground breaking, career enhancing, etc., etc, is precisely the work that will be kept in-house. Tell me, if you really enjoy working on cars as a hobby, do you let someone else work on your car?
This seems so elementary, but you#146;d be surprised how many people forget it.
Take me, for example. It says #147;business attorney#148; on my business card, so what do you think people pay me for? Lofty advice and research on complex legal questions? Sophisticated business advice which I offer while attending my clients#146; board meetings?
As the comedian Steve Martin used to say, naaaaaaaaah . . .
What people pay me for is document production #150; the ability to churn out legal documents on relatively short notice to engrave in stone the business deal they#146;ve spent weeks putting together and negotiating with other people. Client never ask, #147;Cliff, how should I structure this deal?#148; What they ask instead is, #147;Cliff, we#146;ve struck a deal with XYZ Company. We#146;re e-mailing the term sheet over to you now, how long do you think it will take to get the legal documents done?#148;
Basically, I#146;m in the #147;documents on demand#148; business, as far as most of my clients are concerned (there are exceptions, of course).
Why are clients willing to delegate this work to me, and pay significant amounts of money for me to do it for them? Well, let me answer this question with another: wouldn#146;t you? I mean, do you really enjoy staying up late every night wordsmithing complex business agreements in technical Legalese, knowing that if you get one word or phrase wrong, the whole thing could come tumbling down on someone#146;s head and you could be sued? Of course not! Nobody does (not even moi). But the job has to be done, and it has to be done well, and therein lies an opportunity for someone like me.
Which brings us to the moral of this week#146;s column. If you truly want to be successful running your own business, especially a service business like mine, the path to success lies in three (3) easy steps:
Step One:#147;Find a dirty job . . . #147;
Step Two:#147;. . . that Has to Be Done, But That No One Wants to Do.#148;
Step Three:#147;Charge Lots of Money for Doing It.#148;
You may laugh, but it#146;s really that simple. People (and corporations) don#146;t delegate the work that#146;s enjoyable. What they will delegate is work that#146;s tricky, detailed, painful, boring, mind numbing, risky, and generally unpleasant. You will never make money asking people to pay you for stuff they enjoy doing. You can make TONS of money doing the stuff they won#146;t dirty their hands with.
Which brings us to one last point. Every once in a while, when you are pitching consulting jobs to corporations, you will get the sense that the project you#146;ve been asked to work on is a #147;tar baby#148;. The name comes from a famous #147;Uncle Remus#148; fable, #147;The Wonderful Tar Baby Story#148;, written by the 19th century American author Joel Chandler Harris (to read the original story on the Web, go to #147;
xroads.virginia.edu/~UG97/remus/tar-baby.html
#148;).
In the business world, #147;tar baby#148; is a project that is (a) politically sensitive within the company, and (b) has a high probability of failure no matter who does it. A #147;tar baby#148;, if not done 100% perfectly, will cost someone within the organization their job. It makes sense to hire an independent contractor to work on a #147;tar baby#148;, because if they fail, they simply don#146;t get paid and will never work in the company (or perhaps the industry) again, and no one within the organization loses their job.
If you sense that a client is offering you a #147;tar baby#148;, I would suggest not taking it if you value your reputation. If you are desperate for income, or are willing to take the risk of failing on a #147;tar baby#148; project because your failure isn#146;t likely to make page 1 of the industry newsletters and #147;no one will ever know,#148; I have one piece of advice for you: charge several times what you normally would charge for other projects. If the project truly is a #147;tar baby#148;, and the people you#146;re dealing with are desperate to unload #150; I mean, delegate #150; the project to an outside consultant, they shouldn#146;t get a bargain on top of it.
Make them pay, make them bleed money, make it worth the misery, and don#146;t apologize #150; you are performing a truly great service for that company, and if they#146;re the right kind of people, they will appreciate it.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2004 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:45:55Z
Is A Cottage Industry For You?
Staff
http://www.DrLaura.com/b/Is-A-Cottage-Industry-For-You
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- /9619.html
2010-05-07T08:45:53Z
2010-05-07T08:45:53Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Is A Cottage Industry For You?
By Sharon Nani
customerservice@theknittree.com
A home based business can be service oriented or product oriented. If you produce a product as a sole proprietor business owner, you have a cottage industry. Having a business in your home requires pre-planning and investigation.
There are several different federal, state, county, and city laws that regulate a cottage industry and they may each have different requirements or restrictions dependant upon where you live and the product that you wish to produce. The following list is not all inclusive. It is meant as a guide to get you started in the right direction.
Your Tax Assessment Number on your property tax bill will lead you to the first information you will need. Do you meet the legal requirements to have a business in your home?
Call the County Department of Resource Management: Planning Division and ask: What is my #147;Building Zone?#148; Then check that Zone#146;s requirements for a home based business. These might have requirements for public access, amount of public access, parking space, amount of space in your home that you can dedicate to the business, etc.
This is also the place that you apply for your #147;home occupation#148; permit, which will list your restrictions for the zoning in your area.
Do not despair if you do not meet these requirements. There are alternatives such as renting a spot in someone else#146;s business as your customer contact point or applying for a zoning change.
A certified public account can help you determine what your license requirements might be. He will also help you set up your book keeping system dependant upon whether you wish to claim that you are a #145;hobby business#146; or a business. It is to your advantage to apply for a Fictitious Name Statement from the County Clerks Office for your cottage industry. This is inexpensive and you will need this if you open a Business Bank Account or have a business phone. If your product is sold retail, you may also need a #147;Sellers Permit#148; from the State Department of Equalization.
Every cottage industry owner knows the importance of their
Bread Butter Basics
. These are the items that are usually easier to make, in great demand, and economical to the consumer. Check out some ideas for Bread and Butter Basics from this
web site
: hand loomed slippers, baby blankets, caps, hats, booties, sweaters, lighthouse placemats, hair scrunchies, and scarves. They might even be mascot stadium blankets: bears, knights, or leopards. Bread and Butter Basics also includes learning about the specialty techniques that add the finishing polish to your product. Don#146;t forget, you need to know how to determine the selling cost of your products before you start to market them. Get all #147;your ducks lined up#148; and you too can have a successful cottage industry.
The Knit Tree is a small family owned company on the outskirts of Redding, California#151;right at the tip of the Sacramento Valley#151;surrounded on three sides by beautiful mountain ranges. It is operated by David and Sharon Nani. It all began in 1970 when Sharon, as a young mother, received a knitting loom as a gift from her husband. The first item Sharon learned to make was the unique knit slippers which you can still find today in the showroom Bread and Butter Basics. As Sharon quickly became known as "The Slipper Lady" she realized what a wonderful opportunity had been given to her. She could add to the family income and still be at home to care for their two young children. E-mail:
customerservice@theknittree.com
. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:45:53Z
Young Couple Buys Ranch with Government Money
Staff
http://www.DrLaura.com/b/Young-Couple-Buys-Ranch-with-Government-Money
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2010-05-07T08:45:52Z
2010-05-07T08:45:52Z
Staff
2010-05-07T08:45:52Z
Keeping Your Employees Happy Without Getting Soft
Staff
http://www.DrLaura.com/b/Keeping-Your-Employees-Happy-Without-Getting-Soft
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- /9621.html
2010-05-07T08:45:49Z
2010-05-07T08:45:49Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Keeping Your Employees Happy Without Getting Soft
Cliff Ennico
cennico@legalcareer.com
It#146;s one of the classic #147;Goldilocks#148; problems in running any business.
If you push your employees too hard to get results, they resent you. They talk about you behind your back, and complain bitterly about working in a #147;sweatshop environment#148; where their lives are sacrificed to make you rich. The first chance they get, they bolt to another company, probably a competitor. Read any installment of the cartoon strip #147;Dilbert#148; and you#146;ll see what I mean.
Yet if you are too nice to your employees, and bend over backwards trying to make your workplace as happy, nurturing and fun-filled as you possibly can, what happens then? Your employees start thinking you are a #147;soft touch#148; and start taking advantage of your good nature. They ask for more, more and more, even though what you#146;re giving them as compensation is quite generous by industry standards. They start showing up drunk for work, or not at all, and play to your sympathies when you try to pull them up short or criticize them. They start second guessing your management decisions, and insist that you justify everything you want or need them to do.
How can you get your employee relationships #147;just right#148;? How can you build a positive, healthy working environment for your employees without giving away the store?
Someone who#146;s wrestled long and hard with this problem is Bob Weiner, founder of Constantine Carpet (
www.constantine-carpet.com
). Constantine Carpet is a leading manufacturer of commercial and residential carpeting, employing about 270 blue- and white-collar employees in several northern Georgia mills, that is widely praised in its industry for the #147;cult-like#148; positive attitudes its employees bring to their work each day.
Here are some of Weiner#146;s tips on handling employee relations:
You#146;re Not #147;The Boss#148;
. #147;My employees should be thinking of the company and its well-being, and not dealing with me as an individual at all,#148; says Weiner, explaining that today#146;s workers have been taught to #147;question authority#148; at all levels and will resent you presenting yourself as an authority figure. #147;You can#146;t just tell people to do something because #145;you#146;re the boss#146;, because that won#146;t cut it anymore,#148; says Weiner.
The key, according to Weiner, is to make sure your employees don#146;t see you as #147;someone who is generous or stingy#148; but rather someone who is smart and able enough to build a successful company and who will make sure that if the company is prosperous, the workers who make a difference will become prosperous as well.
But You#146;re Not Their Friend, Either
. Weiner recalls that when Constantine Carpet was just getting off the ground, #147;I was very close to certain individuals, and that was sometimes a problem for me, like when I had to fire them.#148; Weiner stresses the importance of setting up policies once a company has grown beyond the startup phase, and letting employees know that their success will depend upon their adherence to the policies- and not their personal relationship with you.
Make the Company the #147;Third Person in the Room#148;
. #147;Employees should be thinking of the company#146;s well being, not mine,#148; says Weiner, explaining that he makes a point of telling employees that thus-and-such a goal will benefit the company as a whole, and therefore benefit everyone. #147;You put the company in the room along with you and the employee, and tell the employee that if that artificial third person is happy, you will be happy as well,#148; says Weiner.
Make Incentives on a Group Basis, Not an Individual Basis
. Weiner feels strongly that bonuses and other incentives should be based upon the company#146;s performance, not only or solely the individual employees#146; performance. As an example, Weiner cites Constantine Carpet#146;s productivity bonus: #147;we set output goals for the tufting or the dying operation, and make sure people know if the whole plant produces more stuff per employee-hour and meets the quota, then everyone benefits; if the quantity is surpassed, everyone in that plant gets a bonus for the week.#148; One of the side benefits of this approach is that all employees are guaranteed to be tough on slackers, whiners and other drags on productivity, knowing that substandard performance will affect them personally.
Be Humane
. #147;It gets really hot in Georgia in the summertime,#148; Weiner observes, #147;so I#146;ve put fans and water coolers all over the place in every one of our plants, as well as #145;blow fans#146; with evaporated water that fees like air conditioning.#148; Weiner says you should do things like that without your employees having to ask.
Make Your Employees #147;See the Logic#148;
. Finally, Weiner says that while you shouldn#146;t have to explain yourself constantly to your employees, it#146;s important to make employees see the logic in what you#146;re doing. #147;If people can see why what you#146;re doing makes sense, if they can see the logic of what you#146;re doing, and that it does make business sense and does create value, they will not view it as an arbitrary #145;order from the boss#146; that has to be challenged,#148; says Weiner.
Or, as Benjamin Franklin said back in 1776, as British forces approached the fledging colonial capital of Philadelphia, #147;gentlemen, if we do not hang together in this time of crisis, be assured that we will all hang separately.#148;
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2004 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:45:49Z
How to Launch a Successful eCommerce Web Site From Home
Staff
http://www.DrLaura.com/b/How-to-Launch-a-Successful-eCommerce-Web-Site-From-Home
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2010-05-07T08:45:45Z
2010-05-07T08:45:45Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>How to Launch a Successful eCommerce Web Site From Home
Jennifer Fallon
jennifer@myweddingfavors.com
In January 2004, my husband Brad and I launched our first online store using a $50 per month Yahoo Store. After we built the store and I entered our initial products, we sold over $10,000 our first month. But by April we had over $80,000 in monthly sales and had to find a warehouse to hold our inventory. By May, our sales had reached $132,000.
By June, we were bringing in over $150,000 per month and had to upgrade our warehouse, and now we have a full-time staff of six #150; but I still work at home. Our gross sales have already reached $1 million.
One thing I know for sure is that despite the setbacks of the 1990s, you can still open an eCommerce business and have it be a huge success. But there are some factors to consider when you are getting started.
Step 1: Find a High Demand Niche MarketBrad and I were married in May of 2003. I wanted to be able to have children and stay at home, but without giving up my income. I had a corporate software sales job with a lot of travel. The initial idea for my new business came to me when I was planning my own wedding and was looking for place card holders for our reception. As I surfed the web looking for wedding favors and place card holders, I thought to myself . . . what a great internet business #150; wedding favors. People are looking to purchase large quantities for the entire guest list, and you can#146;t exactly walk into a store and buy 150 personalized candles. Plus there are so many items on your wedding planning checklist and it#146;s ideal to be able to go to the internet on a Sunday night in your pajamas and knock an item off the list.
We decided to do more research on this online market and, using the free #147;Search Term Suggestion Tool#148; at
www.overture.com
, we found that over 100,000 people per month are searching for the term #147;wedding favors#148;. That#146;s high demand! Of course when I typed that in myself, I was a bit concerned about the amount of competition but I knew the concept was good; I knew it had potential. My husband has experience in helping web site owners get their web site to the top of the search engines. That#146;s called Search Engine Optimization, so it seemed that an online business selling wedding products was going to be a great fit.
Having a great idea is a lot different from making that idea happen. I knew very little about retail and certainly had a lot to learn about the wedding favor market. Our first step was getting our retail tax ID and seeing if I could find products. The most challenging part of this was going to be product pricing. Since brides are purchasing for an entire guest list, the price point is extremely important; most people are not going to pay more than a few dollars per favor. So I headed off to the wholesale Atlanta Mart, looked around and took home over 40 catalogs from different gift wholesalers.
That was the fun part! Every night after work I would go through the catalogs and mark which products I thought would work as a wedding favor. The next step was to build the website, which was a Yahoo store. Templates are provided, software is provided, and the shopping cart is provided. The majority of work was going to be taking pictures of the products and writing the website content and the descriptions. We wrote all the descriptions for the products and then had a sample of each product that we photographed on tablecloths just as they might appear on reception tables. So after a lot of long nights and weekends, we had a website! Now what?
Step 2: When you have what people want...make sure they know about it.100,000 people a month may be searching for what we were selling but how were we going to be found. That is where my husband and I began to strategize with this new business. Brad had been experimenting with different techniques to get a web site a higher ranking in the search engines. Brad put into practice some theories he had developed as one of the leading experts in the search engine field. We started moving up in the search results almost immediately. We first noticed we were coming up on page 3 on Google, kept working at it and the next thing we knew, our web site, myweddingfavors.com, was coming up in the #1 slot on Yahoo! and #2 on Google when somebody was searching for #147;wedding favors#148;.
Very shortly thereafter our profits started to soar. We went from 6-10 orders a day to 50-60 orders a day selling over $160,000 per month! Our little side business was now a million dollar business with 6 employees. It was quite comical #150; we went from having a few products in our basement with my retired father helping with shipping to a large warehouse with 6 employees. There were many growing pains, but I still work from home.
I think that our success is mostly due to search engine marketing. Think about it#151;people perform a web search for a product when they are ready to buy it. It#146;s the best form of targeted marketing there is. In our case the word #147;wedding#148; is the fifth most commonly searched phrase on the Internet. It is searched for more than 3,000 times a month on Google alone. And out of more than 822,000 listed web sites that sell wedding favors, our site comes up well ahead of our competition. The power of advertising using search engine marketing has proven to be so powerful to us that it is now our primary form of marketing and advertising. And Brad has gone on to start his own company devoted to creating high search engine rankings for web sites, SEO Research.
Step 3: Know when to outsource
I originally started this business as a sideline endeavor. It quickly started to take over my life. One of the first lessons I had to learn was that if my business was to remain a success, I couldn#146;t do it all by myself. Orders were piling up (which was a good thing). But there was no way I could handle order processing, shipping, bookkeeping, and still maintain a high level of customer service. And I believe quality customer service makes the real difference in this kind of business.
In an Internet environment, a customer will have a certain anxiety level dealing with a business they have never seen with their own eyes. This is why you must go the extra step when it comes to keeping your customers happy. I realized that in order to do this, I had to outsource the daily operational details of my business. I hired a full time staff of six people (including 2 of my relatives) to handle order processing, packing, shipping, customer service, etc. This freed my time to focus on searching for new and unique products. This also gave me the ability to keep a close watch on my manufacturing vendors to make sure product quality met my specifications. Even though this is an online company, certain basic components of good business practice still apply: quality products, attentive service and the ability to respond to customer requests with a personal touch.
Now that I have a #147;staff#148; to handle the more labor-intensive details, this is quickly becoming the work-at-home opportunity I dreamed of. I have the freedom to do the things I want in life, and the satisfaction of owning my own business. While I would never say that running this type of company is easy (because it isn#146;t), I do know that it can be intensely rewarding and personally satisfying. If you#146;re looking for a home-based business with a high-yield potential, then I highly recommend eCommerce as the way to build your path to success.
Jennifer Fallon runs her own home-based business, My Wedding Favors,
www.myweddingfavors.com
. Jennifer works from home 4 days a week using the internet and phone to manage her 6 employees.
Brad Fallon founded SEO Research, the scientific search engine authority with proven strategies to deliver top rankings. Brad used his knowledge of search engine marketing to help Jennifer propel www.myweddingfavors.com into a million dollar a year enterprise #150; in the first nine months. More information about Brad and SEO Research can be found at
www.seoresearch.com
and Brad#146;s blog at
www.bradfallon.com
. To see the story of My Wedding Favors and learn how you can get your web site to the top of the search engines, visit
www.instantseoexpert.com
. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:45:45Z
The Four Horsemen of Corporate America
Staff
http://www.DrLaura.com/b/The-Four-Horsemen-of-Corporate-America
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2010-05-07T08:45:41Z
2010-05-07T08:45:41Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The #147;Four Horsemen#148; of Corporate America
By Cliff Ennico
www.cliffennico.com
Anyone who took Art History 101 in college remembers at some point seeing a slide of Albrecht Durer#146;s woodcut, #147;The Four Horsemen of the Apocalypse#148;. This masterpiece depicts four ghostly riders on horseback, charging ahead in full stampede and waving their fearsome weapons over their heads, trampling over the bodies of the highborn and lowborn equally, while angels float overhead egging them on (you can see a terrific reproduction on the Web at
www.apocalipsis.org/artwork/durer4horse.html
)
These mythic figures, who made their first appearance in the biblical Book of Revelation, are symbols of the four plagues that have devastated mankind since the beginning, the evils that no human can prevent or avoid -- War, Famine, Pestilence, and Death.
As the economy heats up, a lot of downsized executives and frustrated business owners are thinking about making a return to the #147;Fortune #147;1000#148; corporate world, where the living is easy, the money flows like wine, and you actually get benefits. Well, before you dust off your suits, polish up your resume, and google the Web to learn more about Six Sigma, be aware that corporate America is facing #147;Four Horsemen#148; of its own right now, and these plagues are likely to be hanging around for the next couple of decades at least. Now more than ever, it is important to hang on to your entrepreneurial dreams, for dear life, and resist the siren call of the corporate cubicle.
Horseman # 1: The Computer Revolution
. These days, if a big company can buy computers to do the work of people, it buys the computers and eliminates the people. With today#146;s information technology, it is entirely possible to run a $1 billion corporation with fewer than 100 employees, and large corporate staffs are a thing of the permanent past.
Horseman # 2: The Rise of Asia
. If a big company must hire people to do a job, because no computer is good enough, it is likely to hire the cheapest people it can in far-flung corners of the globe. Our global economy often forces corporations to hire people overseas who can work for a fraction of the salaries and benefits their American counterparts need. It is not an exaggeration to say that we are witnessing the dawn of an #147;Asian Century#148;, with China, India and some of the smaller Pacific Rim nations becoming the economic powerhouses of the future. American industry will have to struggle hard to survive, much less maintain its dominance.
Horseman # 3: The Outsourcing of Nonessential Functions
. If a big company really must hire Americans, because no foreigner is good enough, it will #147;outsource#148; them as independent contractors rather than employees, especially if the job is perceived by senior management to be a #147;staff function#148; that is not essential to the company#146;s success. That way the company doesn#146;t have to pay them benefits, health insurance or other employee #147;perks#148;.
Horseman # 4: The Obsession with Productivity
. If you perform such an essential function for a big company that they absolutely must hire you as an employee, not an independent contractor, be prepared to work harder than you ever have in your life. Big corporations these days are obsessed with #147;maximizing productivity#148;, which often translates into English as #147;getting the maximum amount of work out of your employees for the minimum amount of compensation#148;. For example, in an effort to cut employee health care costs, many big companies are modifying their health insurance plans so as to decrease their mandatory contributions and increase the deductibles, copays and other amounts employees must pay before coverage kicks in. While no doubt many corporate employers will take seriously their #147;social welfare#148; obligations to their employees, some will take advantage of the availability of cheap overseas labor and the weakness of American labor unions to create a sweatshop environment for their employees in which one #147;lives, breathes, eats, sleeps and excretes the Company#148; with little time for outside pursuits, and is expected to be grateful for it.
And a Fifth Horseman: Our Increasingly Volatile Economy
. And if due to some miracle of enlightened management a company resists the temptation to be run down by the #147;Four Horsemen#148; and is actually a great place to work, always remember that even the most #147;employee friendly#148; company can be taken over by a competitor, lose a key product due to obsolescence or loss of a key patent, or fail due to poor management. In some industries, all it will take is one successful terrorist attack on American soil, or one decline in an economic indicator, to drive every company into a tailspin. The marketplace these days is extremely unforgiving, and small mistakes frequently lead to big disasters, which are immediately broadcast to the entire world in real time by our 24/7 media.
Even if you stay employed with a big company until age 65, you will still need to keep your entrepreneurial dream alive if you expect to survive your retirement years. Corporate retirement plans are a lot less generous than they used to be, and many corporations have cut back, or eliminated altogether, the medical insurance they provide to their retirees. The Government won#146;t be there to bail you out, either. Social Security, Medicare and other government programs that helped your parents and grandparents either won#146;t be there when you are ready for them, or they will be so scaled back that only the most poverty-stricken Americans will qualify for them. And you won#146;t be able to fall back upon blue-collar or service jobs, because there#146;s a massive wave of new immigrants from Asia, Africa and Latin America who are only too willing, for a lot less money, to take the jobs we educated Americans are too proud to do.
To sum it all up, even if you do make a successful return to corporate America, you cannot count on your employer #150; or indeed, anyone other than yourself -- any longer to provide you with a generous living over the long term. Big companies, facing tough foreign competition, have learned that they have to keep their costs as low as possible to stay alive. Since people are a corporation#146;s biggest cost, they try to run their businesses with as few employees as possible, and try to get as much work out of those people as they legally can without overpaying for it.
My prediction for all of you, dear readers #150; no, my guarantee #150; is that sooner or later (maybe next year, maybe when you turn 50, maybe when you retire) you will find yourself once again responsible for generating the income you need by running your own business. My advice to all of you is to begin preparing for that day now. If you are running a business and do get a corporate job, don#146;t shut down your business completely; keep it running on #147;life support#148;, perhaps with the help of stay-at-home relatives, so you won#146;t have to start it up again from scratch if the new job doesn#146;t work out. Develop new skills and other interests on the job that you can turn into profit making businesses or consulting practices someday. Make business contacts that can not only help you in your current job, but provide customers, financing or other support to your future entrepreneurial venture.
Keep up to date about new techniques for running successful small businesses, and don#146;t cancel your subscription to
HomeBusinessJournal
under any circumstances. Look for opportunities to get back into the entrepreneurial life, and don#146;t wait until the #147;time is right#148; before you launch. The sooner you get started, the sooner you will be able to support yourself without having to rely on anyone else for your income. And then you can get on with the fun stuff you#146;ve always wanted to do in life #150; without fear, without anxiety, without ever having to wonder if things would have been better had you stayed on the corporate ladder.
CLIFF ENNICO, best known as the host of the PBS television series #147;MoneyHunt#148;, is the author of the nationally syndicated newspaper column #147;Succeeding in Your Business#148; and the legal correspondent for the Small Business Television Network at
www.sbtv.com
. You can find out more about him at
www.cliffennico.com
. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:45:41Z
How Not To Do A Trade Show
Staff
http://www.DrLaura.com/b/How-Not-To-Do-A-Trade-Show
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2010-05-07T08:45:38Z
2010-05-07T08:45:38Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>How Not To Do A Trade Show
Cliff Ennico
cennico@legalcareer.com
There have been entire books written on how to survive your first trade show. My current two favorites are by marketing expert Steve Miller: #147;How to Get the Most Out of Trade Shows#148; and #147;How to Design a #145;Wow!#146; Trade Show Booth Without Spending a Fortune#148;, both of which should cost you less than $25.00 at your favorite bookstore.
Sometimes, though, you can sweat the details of your trade show booth so much that you lose sight of the more important stuff.
At a recent trade show I attended, one particular booth was generating huge crowds. The sponsor, an e-commerce company, had obviously spent a good part of their investors#146; money in reserving one of the best and most visible locations on the trade show floor, with lots of foot traffic.
The exhibit was a knockout #150; a full scale replica of a beachcomber#146;s hut, surrounded by what looked like about 10 yards of trucked-in sand and imitation palm trees (with coconuts, no less). The staff of about 10 were all dressed in Hawaiian shirts and shorts (for the guys) and hula outfits (for the ladies). Most of the staff were nubile young men and women with buff figures who, it seemed, had been recruited from a modeling agency. The theme of the booth screamed at you: #147;if you use our service we make life really easy for you, so easy you can retire to Tahiti and forget you even run a business.#148;
The booth was a winner, don#146;t you think? It certainly impressed the people running the trade show, who gave the booth its #147;best design#148; and #147;best overall effect#148; awards.
And yet . . .Like a lot of folks, I was very impressed by the booth, and wanted to learn more about this company. I had to stand in a line five people deep to even get close to one of the staff. When I did, she said, in her best Valley Girl accent, #147;dude, you wanna portable fan?#148; (they were giving out portable fans, again a tie-in to the Tahiti image). I asked this young lady about the company and what it did, expecting to hear an #147;elevator pitch#148; about the company, its products and services. Instead, the lady stared at me blankly, and said coldly #147;I#146;m sorry, sir, I#146;m just working the booth. You have to speak to one of our engineers#148;. She pointed to one of the young men in the Hawaiian shirts, and went back to handing out portable fans. Strike One.
I approached the engineer, who was sitting at a laptop computer explaining something really technical to a few people. All I could hear was #147;implementation#148;, #147;e-commerce solution,#148; #147;asynchronous#148;, and a few other words. When I finally got through to this fellow, I told him I was writing a column for small business owners and asked him to explain, in simple English, what his company#146;s service was all about. He launched again into his technical spiel about #147;unidimensional focus#148;. Strike Two.
Now, I#146;m a forgiving guy. I work with a lot of tech companies, and sometimes you just have to see their product in action to really understand what it does and how it adds value to people#146;s lives. So I interrupted his spiel, and asked him to show me on the PC what it does. He looked at me with a little blush, and said, #147;I can#146;t do that right now. Our T-1 lines here aren#146;t very good, and we can#146;t get through to our Website.#148; Strike Three. I walked away, portable fan in hand.
Now, here was a company that did everything #147;by the book#148; when it came to setting up a #147;must see#148; trade booth. Yet they totally blew the follow-up. Here are some lessons this company should have learned:
your booth should be eye-catching, but the focus should be 100% on explaining to people what your products and services are all about, and how they improve people#146;s lives;
always use your own employees to run the booth;
if you must use #147;mannequins#148; or hired actors, train them in your company#146;s message so that they can communicate it;
your staff should always be accessible, no matter how big the crowd;
always have marketing people on hand (rather than engineers) to explain your product or service; and
if you are demonstrating your product or service at the booth, make 100% sure the bloody thing works.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2004 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:45:38Z
Have You Found Your Calling, But Hate Your Job? When Your Job In Your Chosen Field Is Not What You'd Hoped For
Staff
http://www.DrLaura.com/b/Have-You-Found-Your-Calling,-But-Hate-Your-Job-When-Your-Job-In-Your-Chosen-Field-Is-Not-What-Youd-Hoped-For
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- /9625.html
2010-05-07T08:45:37Z
2010-05-07T08:45:37Z
Staff
2010-05-07T08:45:37Z
5 Common Mistakes of Old School Persuaders
Staff
http://www.DrLaura.com/b/5-Common-Mistakes-of-Old-School-Persuaders
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2010-05-07T08:45:31Z
2010-05-07T08:45:31Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>5 Common Mistakes of Old School Persuaders
Kurt W. Mortensen
kurt@persuasioninstitute.com
Have you ever had someone try to persuade you with those old, outdated, offensive tactics? You know the ones I am talking about. Before you are even close to purchasing a product I am sure that you have been asked: #147;Do you want it in green or black?#148; I am sure you have also heard: #147;If I could show you how to become financially independent, you#146;d be interested wouldn#146;t you?#148; This backs you into a corner and you don#146;t even want to answer the question. You wonder, does this person really think I#146;m that dumb? You don#146;t buy from these people. You don#146;t even like these people. You never go back to their store. Do these tactics still work? Sure they do. It is the law of averages. Eventually you can find someone who will bend to any persuasive technique. Great persuaders are not smarter; they just have the right tools. You have heard the adage, #147;If you are a hammer, everyone is a nail.#148; You can't treat everyone exactly the same. You have to customize the presentation to every customer. I want to give you a new set of tools because one tool will not fit all your prospects. You can#146;t use the old school tactics and force every prospect into the same mold. The more tools you have, the more successful you will become. Research shows that most persuaders use three to four persuasive techniques. High producers still only use seven to eight persuasive techniques. Did you know there are over 100 techniques? If you look at persuasion like it#146;s a piano, most are playing chopsticks when they could be playing Mozart. Why haven#146;t many persuaders caught up with the times? Why are so many still using the old tools that would best be put to rest? Are you one of them?
First, you must understand persuasion and influence have changed in the past twenty years. Your consumer, prospect, and customer have changed. They are bombarded with over five thousand persuasive messages a day. Your prospect is more educated and more skeptical than ever before. Think about it. When you are approached by a sales rep or called by a telemarketer you automatically put up a huge wall. You are already resisting before anything has been communicated. If you try those old style tactics, you will lose prospects, which results in lost sales. What good is a sales tool that works only part of the time? Imagine if the brakes on your car only worked part of the time.
Let me ask you a question. Have you ever had a prospect that you were working with and you knew they needed your product or service, they wanted your product or service, they could afford it, but they still didn#146;t buy from you? What happened? It was a perfect fit for both parties. We live in a fast-paced world. We don#146;t even have time to think. So your prospect comes in and everything is perfect but they don#146;t buy and they say, #147;I need to think about it.#148; We don#146;t have time but the knee-jerk reaction is to think about it. Do you want to know why your prospects aren#146;t buying from you?
1. My clients/customers trust me
Wrong. We have done studies at the persuasion institute and found most people do not trust you. The persuader thinks and feels that he or she has developed trust, but when we talk to the customer/prospect, there is no trust. Here#146;s the deal: Forty years ago, people were more trusting. The attitude was, #147;I trust you. Give me a reason not to.#148; Now it#146;s, #147;I don#146;t trust you. Give me a reason to trust you.#148; So now you#146;re starting well below zero. On average, depending on your occupation, over 70 percent of the time you did not develop trust with your customer/prospect. Ouch. Even if they like you, if they don#146;t trust you there will be no deal. The ability to gain and keep trust is a vital factor in influencing others. Research has shown, time and time again, that trust is always a contributing factor in the ability to influence others. When a person trusts you, trust alone can cause them to accept your message. On the flip side, if people don#146;t trust you, all the evidence, reasoning, facts, or figures in the world won#146;t get them to budge.
Trust can be an ambiguous concept, but certain things are quite clear: You can#146;t get others to trust you unless you trust yourself first. Your message will not be convincing to others unless it#146;s convincing to you. Whenever someone tries to influence us, we ask ourselves, #147;Can I trust this person? Do I believe him? Are they really concerned about me?#148; We are less likely to be influenced if we sense that the person is driven solely by self-interest. Never assume that people trust you. Always show the world you are someone to be trusted, no matter what the circumstances are.
2. I need more closing skills
Sure it is nice to have a few closing skills in your persuasion tool box, but shouldn#146;t you spend more time opening up your prospect before you even think about closing? In fact, great persuaders don#146;t even have to use closing techniques. The consumer is ready to purchase before the end of the conversation. The only time you really need a closing skill is when you have blown it and you have not followed the proper persuasion process. You need to be able to connect, be sincere and empathic, and show you have their best interest in mind. You should spend more time on connecting, building rapport, finding needs and wants, positioning your product, and answering questions.
Persuading a customer/prospect occurs throughout the whole process, not just at the end of the presentation. Studies show it is much more important how you open a sale rather than close it. Research shows that hard closes not only offend but have also lost their effectiveness. Hard closes work less than five percent of the time and over half of those prospects had buyer#146;s remorse and returned the product.
It is said that the first and most lasting impression is made in about the first four minutes. Be sure you demonstrate confidence in those first four minutes, because the cement dries fast! Nothing can replace a bad first impression, even if you try to make it up later. Fixing a first impression is like fixing a wrecked car. Even after exhaustive time, effort, and expense, you still know it was wrecked, and you#146;re more apt to detect anything that might be wrong with it.
We have all had the experience of meeting someone who, after just a few seconds of being in their presence, we have felt an instant connection or bond to. This is the Law of Connectivity. Conversely, we have probably all met someone who we instantly did not like and did not want to be around. This process is caused by a lack of connectivity and usually takes only a few seconds to become apparent. The Law of Connectivity states that the more we feel connected to, part of, liked by, or attracted to someone, the more persuasive they become. When you create an instant bond or connection, people feel comfortable around you; they will feel like they have known you for a long time and that they can easily relate to you. When we feel connected to someone, we feel comfortable and a sense of trust evolves.
3. Focusing on price rather than building value
Many persuaders tend to focus on price rather than building value. When you are finished with your presentation your prospect should think, that#146;s it? That#146;s inexpensive! What a great value! Even if they can#146;t afford it, they can see the value of what you are offering. Discussing price creates fear in many persuaders. It#146;s often where the sale begins to sink. Three things happen. Prospects know it is a great way to get rid of you, they can postpone making a decision, and it is a knee-jerk reaction. You have not built the value of your product or service. We often feel like lost sales come down to price. It is not the price issue! It#146;s that they don#146;t see the value. Think about it. If price was always the issue, we would all be driving yugos, drinking kool aid, staying at Motel Six, and shopping at thrift stores.
If you do hear the price objection too frequently, try asking, #147;Compared to what?#148; They will usually give you a blank stare because there is nothing to compare it to. It is your job to help them compare your product or service to a Rolls Royce, not a used economy car. It#146;s all about human perception. The human mind has to find a benchmark of comparison to make judgments, especially when we are talking about unfamiliar situations. People make comparisons based on knowledge and past experience. By showing your prospects contrast, you are creating comparisons for them. The mind can't process everything at once, so it develops shortcuts to help make decisions. Instead of making a completely internal judgment, we look for boundaries, patterns, and polar opposites. We want to know the difference between our options, so we naturally contrast the two items. We mentally place things in our mind from best to worst, first to last, or highest to lowest. Do you want your prospects to compare your product or service to the second-hand thrift store or a shop on Rodeo Drive? You get to decide where you want them to start their benchmark.
When using this technique, keep in mind the powerful differences between positive and negative information. Psychologists have asserted for years that people automatically and subconsciously have extremely high expectations for the good over the bad. Because of this consistent tendency, negative information, when it comes, always seems to be given considerable weight because it is such a jarring contrast to what was expected. For example, have you ever had a salesperson get you all excited about some incredible product you were about to purchase? You're totally thrilled with all the things this product is going to do for you, and then BAM! The salesperson hits you with the ghastly price. Suddenly the hefty price tag #150; just one negative detail #150; outweighs all of the twenty other terrific features. Negative information has taken precedence over all the positive information. In fact, now this one negative detail totally consumes your thoughts. You drive home only able to think about how the precious item is going to cost you an arm and a leg.
4. Persistence is the key
Persistence is an incredible quality to have. Persistence is the number one reason why people are successful in life. It's also the driving force that determines why certain people are wealthy. Their success is not due to financial backing or education. They owe their achievements to persistence. There's an old sales adage: "Some will; some won't. So what? Who's next?" I want to focus on smart persistence. If you get lots of no#146;s, you might be wasting your time and the prospect#146;s time. There is a fine line between smart persistence and being a pain in the butt. You need to be able to sense when and where the best time to contact is, how to make contact, and if you should continue contacting your prospect. When you are doing it the right way, your customer will let you know they appreciate your correspondence. You can be persistent trying to break down the brick wall with your head, but there is a time and place for good, smart persistence. Don#146;t make it a badge of honor counting up your rejections. Sure rejection is part of being a persuader. Let#146;s just keep it down to a manageable level. We know we can#146;t persuade all the people all the time. We should know when to walk away and find other prospects to spend time with. I could be in NYC handing out $100 bills to pedestrians and many would not take the bills. They would not have the time to think about it#133;there has to be a catch, etc.
Working harder is useless if the prospect doesn#146;t see a need for your product or service. Find your ability to read what they need and the best way to be persistent. Are they a qualified buyer? Persuaders contact prospects almost everyday and wonder why they don#146;t return their calls. The persuader feels they have a great potential buyer and they are interested and it is just a matter of time. They know the sell is inevitable. Then we contact the prospect to get the truth. This is what we find out: They have not had intentions of buying, they are sick of all the messages; they did not have a need, want, interest, or even the money to buy. But our faithful persistent persuader did not take no for an answer. Again persistence is a great trait, but let#146;s add the smart aspect to it.
Another important point is when you are contacting your prospect again, remember the emotion has left the building and you need to revisit why they were interested in the first place. Maybe they were going to think about it, but they probably have not had the time to think about it or to look at your beautiful literature. You have to recapture their interest and needs when you make the second contact. If they are no longer hot, you have to restart the fire. If you do leave a message, make sure you give them a great and legitimate reason to call you back. Do you have more info? Has there been a product enhancement, has the pricing changed? Get them involved as much as possible.
5. I#146;ll figure it out on my own
This phrase has cost me millions of dollars. It was a great day when I realized that all the problems and obstacles I was having in life, or in persuasion, had already been solved or figured out by someone else. That means these people have answers! Poverty thinking is #147;I will figure it out on my own and take three years of time and countless money trying to reinvent the wheel.#148; The big challenge is that we cannot coach ourselves. We can#146;t see all our strengths and weakness, what we need to improve and work on. All great players have mentors and coaches. Look around you. Who can you talk to, who can you take to lunch, who can be your coach? We know getting the book is a great start and will teach you great things, but if it is true excellence that you#146;re going for, you need coaching. If you want to learn how to play basketball from reading a book, you would never achieve greatness on the court. You need to interact with the best. The best growth in my life has come from mentoring and coaching with the best.
You don#146;t have the time or resources to wait to figure it out on your own. It amazes me how many persuaders go down this road. Persuasion is not rocket science, but you do need to learn how to master your craft. In the past we would be able to get along, slowly learning, but times have changed. The train is picking up speed. We used to be able to play and miss the train and run and catch up if we were late. But the speed the world is moving at and the competition you are facing will not allow you to figure it out on your own. You can invest in yourself right now and find the best to teach you the skills or be on the long road to little income, few skills, and the inability to persuade. If you wanted to rebuild the engine in your car, learn how to fly, or rewire your house, would you just try to figure it out on your own? Would you get the best book on learning how to fly and just hop in a plane and learn along the way? NO! Then don#146;t treat your career or your ability to persuade the same way. I remember going to a stock market seminar about learning how to trade. It cost over $10,000 to attend this training. I got burned when I decided I#146;d just figure it out on my own and lost three times that amount in the market. The students attending the class invested upfront and learned the skills and became great traders. I lost and did not learn the right skills. The answers are there, closer than you think. You would be surprised by how much people can help you succeed.
Pay the price to become a professional in your field. Don't settle for mediocrity; become the best you can be at what you do. Who is the best in basketball? Right #150; Michael Jordan. He knew he could not become the best without daily practice of fundamental skills along with the addition of new skills. He also knew he could not excel without a team, and especially not without a coach. True excellence comes from knowledge, continuing education, and consistent practice.
Conclusion
Learning how to persuade and influence will make the difference between hoping for a better income and having a better income. It is the missing puzzle piece that will crack the code to dramatically increase your income, improve your relationships, and help you get what you want, when you want, and win friends for life. Ask yourself how much money and income you have lost because of your inability to persuade and influence. Think about it. Sure you#146;ve seen some success, but think of the times you couldn#146;t get it done. Has there ever been a time when you did not get your point across? Were you unable to convince someone to do something? Have you reached your full potential? Are you able to motivate yourself and others to achieve more and accomplish their goals? What about your relationships?
For a free persuasion IQ analysis to help you see where you rank and what you need to improve visit
www.persuasioniq.com
.
Kurt W. Mortensen (
kurt@persuasioninstitute.com
) is one of America#146;s leading authorities on persuasion, motivation and influence. He offers his speaking, training and consulting programs worldwide, helping thousands achieve unprecedented success in business and personal endeavors. Visit our website at
www.maximuminfluence.com
. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:45:31Z
You've Patented A New Product. Now What?
Staff
http://www.DrLaura.com/b/Youve-Patented-A-New-Product.--Now-What
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2010-05-07T08:45:28Z
2010-05-07T08:45:28Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>You've Patented A New Product. Now What?
Cliff Ennico
cennico@legalcareer.com
#147;I designed a purse a year ago that I got comments on everywhere I went #150; women on the bus, women walking up to me on the street, women at the coffee shop, and even a male bank teller at my local bank. I decided to apply for a patent on the purse, which I did. I have a filing certificate from the U.S. Patent Office, and I expect the patent to come through very soon now. I cannot afford to spend any more money on this project, and I do not have the energy to start my own business. I need an honest buyer who is willing to find a manufacturer and get the purse to market, without shutting me out completely from any profits. I know the purse will sell, and I can see it hanging on the hooks in WalMartreg; or Targetreg; stores. Can you help me?#148;
First of all, just because you#146;ve received a filing certificate from the U.S. Patent Office does not mean your patent will be approved. It merely confirms that they received your filing, and you#146;ve got a looooooong way to go before a patent issues. It sounds to me like you made the patent filing yourself, without the assistance of a patent agent or attorney. That#146;s a big mistake. You will have to show the Patent Office that your purse design is not #147;obvious#148;, and normally only a patent agent or attorney will know what the Patent Office examiners will want to hear. Also, patents can be either #147;strong#148; or #147;weak#148;, and you want to get the strongest possible patent you can, since it#146;s a 100% certainty that if your purse design catches on, someone will try to #147;knock it off#148; and make unauthorized copies for the street vendors on Fifth Avenue to sell for two dollars. Since your budget is limited, get thee to a patent agent, pronto!
Once you have a valid U.S. patent, you will want to license #150; not sell #150; the purse design to the company that will manufacture, market and sell it. In a license deal, you grant a company the right to make and sell your purse, and they pay you a royalty (usually 1 or 2 percent of the retail price) on each sale. So far, so good. But how do you go about getting a license deal, especially when you have limited resources? Is there anyone out there who can help you license your purse?
According to Mark Nowotarski, a patent agent and founder of Markets, Patents Alliances LLC in Stamford, Connecticut (
www.marketsandpatents.com
), there are two types of people who help inventors land license deals #150; licensing agents and invention promotion firms #150; but you have to be careful. #147;Invention promotion firms are those companies you see advertising on television at 2 o#146;clock in the morning,#148; says Nowotarski, #147;and they have a very bad reputation for being misleading about what they will do for their clients.#148;
That leaves licensing agents. Nowotarski says that for consumer products such as handbags, the best place to look for licensing agents is in the #147;classified ads#148; section of #147;Inventor#146;s Digest#148; magazine (
www.inventorsdigest.com
). According to Nowotarski, a typical licensing agent will work either for an hourly fee or an upfront payment of #147;a couple of thousand dollars #150; anything more than that I would be suspicious of their intentions#148;, and will want a percentage (up to 50%) of the royalty you receive from the manufacturer.
Nowotarski also recommends attending your local chapter meeting of the Licensing Executives Society (
www.usa-canada.les.org
). While the Society#146;s members focus on high-tech products -- pharmaceuticals, electronics, and telecommunications -- rather than consumer goods, Nowotarski explains that #147;Society members usually know #146;who#146;s who in the zoo#146;, and can direct you to some local licensing agents with solid reputations.#148;
Before approaching a licensing agent, though, you need to do some basic market research: just saying you envision your purse in WalMartreg; or Targetreg; stores isn#146;t enough. Here#146;s a suggestion from Nowotarski: go to a local university and ask the engineering department to make a prototype of your purse, as a student project, without charge to you. Then pay a local manufacturer to make a small #147;trial run#148; of purses #150; say, a couple of hundred units. Then, sell the purses on eBayreg; and see what happens. #147;You won#146;t make a lot of money,#148; says Nowotarski, #147;but you will find out what parts of the country are interested in your handbags, and what the retail price might be. That kind of market intelligence will make it a lot easier for your agent to narrow down the list of potential buyers and quickly help you land the right licensing deal.#148;
Before hiring a licensing agent, Nowotarski insists you speak to inventors the agent has dealt with in the past, and trust your gut instincts: #147;there#146;s never a free lunch in the licensing business; if an agent promises you one, walk away.#148;
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2004 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:45:28Z
The New Overtime Regulations, What They Mean For You
Staff
http://www.DrLaura.com/b/The-New-Overtime-Regulations,-What-They-Mean-For-You
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- /9628.html
2010-05-07T08:45:25Z
2010-05-07T08:45:25Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The New Overtime Regulations, What They Mean For You
Cliff Ennico
cennico@legalcareer.com
Last week (August 23, 2004 to be exact) the U.S. Department of Labor#146;s new overtime rules went into effect. The new rules have generated tons of publicity and comment in the press, but I suspect last week#146;s deadline still took a lot of business owners by surprise.
If you have any employees and use a payroll service, chances are you#146;ve already been notified of the changes by the payroll service and have taken steps to comply with the new rules. If you don#146;t use a payroll service for your low-wage employees (shame on you), or if you use a payroll service and they haven#146;t notified you of your obligations under the new rules (shame on them), chances are you#146;ve already made a couple of mistakes and will have to fix them . . . pronto.
#147;You can#146;t always rely on your payroll service to stay on top of these things,#148; warns Rob Wilson, president of the Employco Group (
www.employco.com
), a Chicago-based professional employer organization (PEO) that handles payroll and benefits for hundreds of small businesses nationwide. Wilson explains that #147;basically, a payroll service just crunches the numbers you give them. It#146;s always your responsibility to comply with federal and state labor laws when you have employees.#148;
According to Wilson, here#146;s how the new rules work:
if you have an employee who is #147;exempt#148; from the overtime rules (such as a part-time lawyer, staff accountant, or other professional), you probably don#146;t have to pay overtime if the person works more than 40 hours a week #150; keep in mind, though, that entire books have been written about when an employee is #147;exempt#148;, and any doubts in this area should be resolved in favor of paying overtime to the employee;
for all other employees (called #147;nonexempts#148; in overtime lingo), if they are making at least $450 a week or $23,660 a year, you do not have to pay overtime if they work more than 40 hours a week #150; again, you or your employment attorney will need to review the employee#146;s job status to make sure they are truly #147;nonexempt#148;;
for all #147;nonexempt#148; employees making less than $450 a week or $23,660 a year, you are required to pay overtime if they work more than 40 hours a week;
special rules apply to computer professionals #150; if you hire computer technicians (not software developers or programmers, who are considered #147;exempt#148; under the rules), for example #147;rent-a-geeks#148; who run around fixing personal computers in people#146;s homes, they must make at least $455 a week or $27.63 an hour before you are no longer required to pay them overtime if they work more than 40 hours a week.
Sounds simple, right? Then, why all the fuss? #147;With these new rules, the Department of Labor raised the overtime threshold from $8,060 a year to $23,660 year,#148; says Wilson, #147;which doesn#146;t sound like a big deal until you realize that about 6.7 million salaried workers in the United States earn more than $8,060 but less than $23,660, and will now be eligible for overtime if they work more than 40 hours a week.#148; In fact, there#146;s been some grumbling in Congress that the new rules don#146;t go nearly far enough . . . but then it#146;s an election year, isn#146;t it?
Let#146;s say you have an employee making $20,000 a year, and you really don#146;t want to pay them overtime or do the paperwork involved. What are your options? #147;I think most employers, both large and small, will simply raise the employee#146;s salary to bring it over the $23,660 threshold so they don#146;t have to pay overtime,#148; says Wilson.
If you are tempted to terminate the low-wage employee and put them back to work as an #147;independent contractor#148; to avoid having to comply with the new rules, Wilson strongly advises that you resist the temptation. #147;The Internal Revenue Service is really cracking down on that right now,#148; he warns, #147;and putting a former employee on 1099 status for essentially the same work they were doing previously will be a screaming red flag to the IRS that you are ripe for audit.#148;
If you have questions about the new rules that your payroll service can#146;t answer, you need to talk to a lawyer specializing in labor and employment problems. To find one in your area, go to
www.findlaw.com
or
www.law.com
and click on the #147;search for lawyer by specialty#148; button.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2004 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:45:25Z
Top Ten Misconceptions About Running Your Own Home Referral Network Business
Staff
http://www.DrLaura.com/b/Top-Ten-Misconceptions-About-Running-Your-Own-Home-Referral-Network-Business
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2010-05-07T08:45:23Z
2010-05-07T08:45:23Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Top Ten Misconceptions About Running Your Own Home Referral Network Business
By Debra Cohen
www.homereferralbiz.com
Contractors are too busy already and don#146;t want extra work.
As one of my contractors once told me: #147;A good contractor won#146;t turn down a good, paying customer.#148; The client may have to wait for the job to be scheduled but most of my clients feel that good contractors are worth waiting for.
The HRN business requires costly advertising.
This is a word of mouth type of business and a lot of job requests are generated through networking in your community, PR and direct mail. It#146;s not expensive to promote the HRN business. In fact, many HRN owners generate their first jobs before they even launch a promotional campaign.
You need to live in a heavily populated area to run a successful HRN business.
Actually, this is a very local business. Most contractors won#146;t travel far for work therefore an HRN needs to operate locally to start. Once you#146;ve established a network in your immediate area, you can expand into new markets and create new networks of contractors to handle the business.
A local HRN business won#146;t be able to compete with established, national contractor referral businesses.
As CBS Marketwatch recently reported: #147;There's probably no project that homeowners won't first research online, but when it comes to inviting contractors to their remodeling project, they're less willing to depend on electronic means.#148; In fact, online referral services like Improvenet and ServiceMagic haven#146;t posed any competition to the hundreds of HRN#146;s operating nationally.
You need contracting experience to run an HRN.
The HRN owner is responsible for marketing and promotion and the contractors represented in the network are responsible for the technical aspects of the job therefore no contracting experience is required.
The contracting business is male dominated and most contractors won#146;t take a woman seriously.
Just the opposite#151;many of my contractors tell me that they enjoy talking to a woman after working with men all day. Besides, if you generate business for them--male or female--you#146;ll ultimately earn their respect.
The HRN owner is liable in case of a mishap on a job.
The contractor is ultimately responsible for his own work and there are numerous safeguards in place to protect the HRN owner including a signed liability clause, operating procedures and insurance provisions.
Running an HRN business means that my phone will be ringing in the middle of the night with emergency calls.
An HRN deals with home improvement #147;projects#148; not #147;emergencies#148;. Of course it#146;s your prerogative if you#146;d like to set up your business to provide emergency referrals.
The HRN owner goes onsite to check out each job before referring it to a contractor in their network.
The HRN owner never goes to a customer#146;s home to check out a job. In fact, I handle more than 90% of my business by telephone.
If I launch an HRN, I have to use the name #147;Home Remedies#148;.
Actually, the name HomeTM Remedies is trademarked and each HRN operates under it#146;s own name.
Debra Cohen is owner and founder of the Homeowner Referral Network (HRN) business#151;a home based contractor referral service business-- and author of
The Complete Guide To Owning And Operating A Successful Homeowner Referral Network
. For more information about how to launch an HRN in your area, visit the HRN website at
www.homereferralbiz.com
. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:45:23Z
If You Must Be Mediocre, Do It With Passion
Staff
http://www.DrLaura.com/b/If-You-Must-Be-Mediocre,-Do-It-With-Passion
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2010-05-07T08:45:18Z
2010-05-07T08:45:18Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>If You Must Be Mediocre,
Do It With Passion
By Cliff Ennico
Back in the 1970s, that silly decade, there was a syrupy pop song on the radio that had a title something like #147;You Don#146;t Have to Be a Star . . . To Be In My Show#148;. As a disk jockey for my college radio station, I remember introducing this song by saying something witty like #147;You Don#146;t Have to Be a Star . . . I Love You Because You#146;re Mediocre.#148; It got laughs, at least back then.
Another musical recording, one I just bought a month or two ago, has started me thinking about mediocrity in a new way.
Let me say by way of introduction that I am a lover of classical music, and opera in particular. But I#146;m not a stuffed shirt. I also love musical parodies that make fun of classical music#146;s pompous pretensions. I think that great musical humorists like Spike Jones, Victor Borge, Peter #147;P.D.Q. Bach#148; Schickele, and Anna Russell (a world-class opera soprano whose screeching takeoffs on Richard Wagner#146;s horns-and-helmets melodramas became cult classics back in the 1960s), have done more to introduce young people to great music than Bach, Beethoven and Brahms together ever did.
It was therefore with great expectations that I recently bought a Compact Disk (CD) entitled
Murder on the High C#146;s: Florence Foster Jenkins Friends, Original Recordings 1937-1951#148;
(Naxos 8.120711, available from Naxos Nostalgia at
www.naxos.com
). The liner notes to the Naxos recording promised #147;the COMPLETE recordings of the #145;Dire Diva#146; . . . not to mention several offerings by people who should have known better.#148; I couldn#146;t wait.
You#146;ve never heard of Florence Foster Jenkins? I#146;m not surprised #150; many classical music aficionados have never heard of her, and many of those who have wish they didn#146;t. The truth is that nobody knows much about Florence Foster Jenkins, except that:
she was a wealthy New York City socialite during the 1920s and 1930s, who died in 1944 at the age of approximately 75 (her exact date of birth is not known);
she founded and guided the Verdi Club for thirty years; and
she loved to sing.
We know she loved singing because at her death she left behind about ten 78 r.p.m. records, made sometime during the early 1940s, on which she sings some of the most famous soprano arias from the great operas, accompanied by an excellent pianist named Cosme McMoon, about whom even less is known (frankly, it sounds like a phony name to me, meant to hide the identity of a well-known performer helping out an old friend). We also know that once a year she rented the ballroom of New York#146;s Ritz-Carlton Hotel to give a private concert for her friends and fellow Verdi Club members.
These recordings were not made by RCA Victor or any of the great studios that preserved the sound of Arturo Toscanini and Enrico Caruso for posterity. Rather, they were private pressings (#147;self-published#148;, we would say today) made at the Melotone Recording Studio in New York City at Ms. Jenkins#146; own expense, and distributed to her friends and family members as holiday gifts (if you were a stranger, you paid $2.50 each, a pretty hefty sum at a time when the country was just recovering from the Great Depression and catching its breath before entering World War II). It is these ten recordings that have been collected on the Naxos CD.
Having listened to the Naxos recording several times now, I can tell you one thing about Florence Foster Jenkins . . . the lady couldn#146;t sing to save her soul. These recordings are not the work of a great musician who is consciously having some fun with the classics to show how good she really is. On each song, Florence Foster Jenkins is truly, majestically awful. She sings at least two keys flat, misses almost all of the high notes by a country mile, is either way behind or far ahead of her piano accompanist, tires audibly about halfway through each song and finishes up by yapping like a Park Avenue poodle chasing a squirrel in Central Park.
These recordings are guaranteed to make your dog howl; your cat will disappear under the sofa for weeks. If you have a teenager in the house who plays Eminem at top volume all day, I can think of little better revenge than to give him or her a dose of Florence Foster Jenkins.
And yet . . .
Listening to the first Jenkins song on the recording, I laughed, when I wasn#146;t wincing in pain. By the second song, I felt pity for the old gal, trying so hard to hit the notes with lots of heart but zero talent #150; even a novice singer gets half the notes right. I was also a little angry at her friends and Verdi Club pals who egged her on and led her to believe, despite the evidence, that she was on a par with the great opera sopranos of her time. By the third, fourth and fifth song, I realized something amazing #150; as horrible a singer as Florence Foster Jenkins was, I couldn#146;t stop listening to this recording. Something about it was keeping me glued to my CD player.
What it was, I realized after a while, was Jenkins#146; sheer presence. She was not doing this for laughs. She clearly loved what she was doing (an #147;amateur#148; #150; one who loves #150; in the truest sense of that word), and couldn#146;t have cared less about what I, or anyone else, thought. By the fifth song I was rooting for her, hoping and praying for her to succeed this time, and when she did hit one of the high notes dead on target (which she does about 5% of the time), I almost wanted to pump my fist in the air and scream #147;#146;atta girl#148; like I was at a rock concert. Her mediocrity is majestic, almost noble. You gotta love her.
Lest you think I#146;m the only one who#146;s had this reaction to Florence Foster Jenkins, the liner notes to the Naxos recording tell us that #147;after years of giving her own unique small-scale entertainments, she took the bold step of appearing in Carnegie Hall on 25 October 1944.
Two thousand people were turned away from the sold-out auditorium and scalpers were getting $20 for their two-dollar tickets
[the emphasis is mine]. Columnist Earl Wilson, Jr. suggested that she should try Madison Square Garden or the Polo Grounds next, but Florence Foster Jenkins died a month after her triumph.#148; Way to go, Flo.
So what does all of this have to do with running your own home-based business?
Those of us in the Baby Boomer generation have entered our 50#146;s. We have started getting junk mail from the American Association of Retired Persons (AARP) and assisted-living facilities, and it has become painfully apparent to most of us that our youthful ambitions of changing the world will never be achieved. We have to face the fact that we are now #147;over the hill#148; and, for most of us, greatness is just as far away as it was when we were in our 20#146;s, back in the 1970s, that silly decade.
I remember one of my professors in law school, then in his own 50s, telling us in 1977 about how we would feel when we reached this point: #147;You are all very bright young men and women, the cream of America#146;s top colleges. But let me tell you something. No matter how good you are, no matter how hard you work, the simple fact is that the Bell Curve applies to all aspects of life, and vast majority of you #150; 90% or more -- are destined to be stuck in the middle. You will not fail, but you will not achieve truly great things either. You will never argue a case before the Supreme Court, become a top judge, or occupy a high elective office. You will find yourself in a small to medium sized town, writing wills, buying and selling houses, representing small clients in court on small cases, and helping people start and shut down small businesses. Maybe you will sit on the local Board of Education, or run unsuccessfully for mayor. You will do a lot of good for your clients, but no one will ever erect a statue of you in the town square, or name a building after you. I don#146;t mean to burst your bubble, but that#146;s just how it is, statistically speaking.#148;
Somehow I don#146;t think my old law professor and Florence Foster Jenkins would have gotten along at all. I don#146;t think he would have understood a 70 year old woman, with her life pretty much behind her and not much in the way of achievement to show for it, plunking down serious money to make some records and realize a childhood dream of becoming a great opera singer, with no hope of success, but like Don Quixote in the Broadway musical
Man of La Mancha
, just in order to #147;follow that star . . . no matter how hopeless, no matter how far.#148; Making some truly horrible recordings, to be sure, but having the time of her life doing it, and capping her efforts with a triumphant, sold-out Carnegie Hall performance before thousands of people who had come to cheer her on. A woman whose records are still selling more than 50 years after her death, probably more than any of the #147;real#148; opera stars of her time, and inspiring that 90% of us who will never cut a deal with RCA Victor, play a role at the Metropolitan Opera, or solo on
American Idol
.
There are a few Enrico Carusos in the world of small business, but there are a lot more Florence Foster Jenkins#146;. If you are destined to be mediocre, do so with style, flamboyance, dignity and pride, and let the critics be damned. Flaunt your mediocrity, and let people see the passion that keeps you going at it every day, even though you know you will never be one of the greats. Keep straining to hit those high C#146;s, because every once in a blue moon you will indeed hit one, and posterity will take notice.
CLIFF ENNICO, best known as the host of the PBS television series #147;MoneyHunt#148;, is the author of the nationally syndicated newspaper column #147;Succeeding in Your Business#148; and the legal correspondent for the Small Business Television Network at www.sbtv.com. You can find out more about him at
www.cliffennico.com
. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:45:18Z
Hiring Employees For Your Home-Based Business
Staff
http://www.DrLaura.com/b/Hiring-Employees-For-Your-Home-Based-Business
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2010-05-07T08:45:15Z
2010-05-07T08:45:15Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Hiring Employees For Your Home-Based Business
By Cliff Ennico*
One of the major #147;rites of passage#148; for any small business, whether home-based or not, is the hiring of the first employee. It#146;s a sign of growth, an indication that your venture is something more than a personal hobby, a chance to delegate some of the mind-numbing business chores that take you away from what you do best, a feeling that you are #147;managing#148; as opposed to #147;doing#148;, and . . . a major legal headache.
Your legal risks multiply by a factor of 10 once you begin hiring employees, to the point that many attorneys will advise you not to hire employees at all #150; deal with all of your helpers as #147;independent contractors#148; or 1099s #150; until the business is generating substantial cash flow and it is absolutely necessary to hire employees. Of course, the Internal Revenue Service and others are likely to treat your #147;independent contractors#148; as your employees anyway if you don#146;t follow the rules. If your #147;independent contractor#148; is working for you 50 or more hours a week, doesn#146;t work for anyone else, lives in your home office and gets medical insurance and other benefits from you, you won#146;t get away with it. It#146;s time to hire them and put them on a payroll.
Assuming you have reached this stage, and can no longer put off hiring employees, the legal issues for employers and employees are particularly acute for a home-based business. Here#146;s a quick overview.
Trust.
While it is important to any business to make sure you are hiring only honest, trustworthy individuals, it is critical to a home-based business that you do so. I would recommend spending at least twice the amount of time #147;getting to know#148; a prospective employee that you would if you were in a commercial setting. Why? Because your employees will have access to your home, either on a daily or periodic basis. They will see where you keep your belongings, they will know how foolproof your security system is, and how tiny your dog with the big bark really is. They will be in a position to steal you blind, or perhaps physically harm you in your home office, and no one will be the wiser for a long time. They will also be witness to the intimate details of your personal life, and will be tempted to tell everyone they know about your #147;dirty laundry#148;.
If you are not completely sure that a prospective employee is trustworthy, DO NOT GIVE THEM ACCESS TO YOUR HOME AT ANY TIME. PERIOD. Meet them in their homes, or at a convenient local diner, until they have proven their worth over a substantial period of time. Just because they are employees does not mean that they actually have to work on your premises.
Zoning.
Most communities have strict zoning laws that prohibit you from operating a business in a residential area. Because there are no #147;zoning police#148; that enforce these laws, however, you can usually get away with running a home-based business as long as your business doesn#146;t get your neighbors so upset that they complain to the local authorities. The likelihood that your business will #147;change the character of your neighborhood#148; and make you visible to the local Zoning Board increases dramatically once you hire employees. They will have to park somewhere, after all #150; probably in your driveway or on the street outside your home. They will come and go at various hours of the day and night, for lunch breaks, cigarette breaks, and so forth. Your house will not be the peaceful, quiet place it once was.
When operating a home-based business in a residential area that is not zoned for #147;mixed use#148; premises, it is essential to keep a low profile. Hiring employees makes it more difficult to keep your business under wraps.
Taxes.
Once you hire employees, you will have to withhold Social Security from their paychecks (FICA), pay federal unemployment taxes (FUTA), and make contributions to your state unemployment system, among other requirements. You will need a good accountant, and perhaps also a payroll service, to help you make sure you meet these requirements. The federal government, especially, will become positively insane when they do not receive their FICA and FUTA payments on time, and, in most states, you will be personally liable for unpaid employment taxes even if you use a corporation or limited liability company (LLC) for your business. An excellent payroll service for small businesses is PayMaxx Inc. at
www.powerpayroll.com
.
Legal Requirements.
Unfortunately for many employers, slavery was abolished in the United States in 1865. Employees today have legal rights, lots of them, and you have to educate yourself about the federal and state rules that will apply to your business. What is more, you will have to educate your employees about their rights. Even a home-based business with only one part-time employee must comply with several federal and state rules designed to protect employees against unfair treatment. If this sounds unfair and burdensome, think about it for a moment . . . some of the worst sweatshops on Earth are home-based businesses!
So how do you find out which rules apply to your business? The easiest and cheapest way is through G. Neil Company at
www.gneil.com
. This company is the leading nationwide provider of #147;rules charts#148; #150; essentially, posters that describing the federal and state laws (of all 50 states) to which employees anywhere are subject, and which employers are required to post conspicuously in the workplace (such as on an employee bulletin board or lunchroom wall). For a price that is usually under $100, you can obtain a poster from G. Neil that is tailored to your location, industry, and number of workers. Make sure you read the poster before hanging it up on your office wall #150; it will teach you volumes about what you can and cannot do with your employees.
Get a New Lawyer.
A mere poster, however, will not help you deal with the many complex, subtle and emotional situations that having employees will cause. Many attorneys, even specialists in business law, are often unfamiliar with the complex federal and state rules governing employees. You will need to find a specialist in #147;labor and employment law#148; to help you deal with the tough ones, such as:
I want to fire an employee who#146;s not competent, but she#146;s just informed me she#146;s pregnant #150; will I be sued for discrimination if I fire her?
I think one of my employees is abusing drugs or alcohol #150; how can I confront them about it without getting sued?
I#146;m really attracted to this new employee #150; how can I let my feelings be known without being guilty of #147;sexual harassment in the workplace?#148;
They Are Only Employees.
Finally, remember that employees are just that . . . employees. They are not members of your family or household. They merely work there. They can be fired at will. They can be downsized if your business suffers a downturn. If an employee is taking up too much of your valuable time with his or her problems, or if you are spending so much time managing the employee that your own work isn#146;t getting done, it#146;s time to sever the cord so you can both get on with your lives. Sometimes you are faced with a difficult choice #150; you can either be kind to a difficult employee (overlooking their faults in the hopes they will improve), or you can be kind to your business (firing the employee who is draining your time, assets and energy). While it is important to maintain a positive and healthy working environment for your employees, being too kind to the wrong people at the wrong times will take years off of your life, and ultimately destroy your business.
CLIFF ENNICO, best known as the host of the PBS television series #147;MoneyHunt#148;, is the author of ten books on small business law and management. You can find out more about him at
www.protectingyourbusiness.com
. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:45:15Z
How to Start, Run, Promote & Profit From Your Own Membership Website
Staff
http://www.DrLaura.com/b/How-to-Start,-Run,-Promote--Profit-From-Your-Own-Membership-Website
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2010-05-07T08:45:12Z
2010-05-07T08:45:12Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>As featured in
Work From Home
Magazine
How to Start, Run, Promote Profit From Your Own Membership Website
How to Sell Online content - The transition from free to "pay-for-content" is taking the Internet by storm
By Janice Ayre
www.MembershipSiteAdvisor.com
Want to sell subscriptions for online content with your own membership site? Selling online content via a password protected website has become big business. Not only is it fast to set up (with the right tools), but the start-up and running costs are minimal. Work from home entrepreneurs and big businesses alike are lapping up this new found revenue source.
People are willing to pay for online content. In fact, the "Online Publishers Association" revealed that pay-for content is emerging as a hot revenue model. Business content, personals/match making, and entertainment are the hottest niches. But even smaller niches, like DVD authoring, sports coaching, marketing services, and dieting are producing profits.
Internet users spend $300 Million in 4 Months for Online Content
U.S. consumer spending for online content in the first 4 months of 2002 was $300 million, a growth of 155% over the first quarter of 2001 (and that#146;s post-September 11th). It#146;s apparent that online users will pay for content on their passion or profession.
Subscribers are paying anywhere from $9.95 a month to $19.95, and in some cases up to $200 a month #150; depending on the nature of the content. Annual subscription renewals hold a solid 72%, giving site owners an impressive recurring residual income. Renewals accounted for nearly half of paid content sales in 2001.
A Rapidly Growing Market
Less than 9% of online users currently pay for online content. This means the market is wide open for the savvy entrepreneur. Paying for content in 2002 was more than 5 times what it was in 2001. That#146;s a massive 500% growth! Those who capture the market first in their niche will have the obvious advantage. It#146;s an international market, so anyone can play.
Starting your own Membership Site
There are 4 key elements to starting a subscription based membership site, says Ansel Gough, Editor of MembershipSiteAdvisor.com #150; an Australian based membership site, teaching others how to start and run membership sites.
Target the right market: Find a market that is passionate about a subject, and then build your membership site around it. There are so many topics to choose from. Doing a key word search will reveal what people are searching for online. You can know before you even launch a membership site if there#146;s a big enough market.
Make it unique: Ideally potential subscribers shouldn#146;t be able to find the same information elsewhere for free online. Your job is to search online (and in some case offline) for content, and provide it in a convenient manner for your subscribers. Being unique could just mean having exclusive interviews with experts in your field. If you#146;ve done the interview, then that#146;s unique. Finding experts (and even famous people) to interview is not hard. In fact, as your site grows in popularity they are likely to contact you. This situation gives you a two-fold advantage. It gives you credibility or an endorsement, and it gives you exclusive content. Of course your exclusive content may be from your own specialized knowledge!
Finding Subscribers: If you#146;ve started off targeting the right market, then finding traffic and subscribers aren#146;t as difficult as some people believe. The best methods for generating quality traffic to your website include: Search engine positioning (including pay-per-click), Internet Joint Venture Marketing, Ezines (online newsletters), affiliate programs, and viral marketing (accelerated word of mouth marketing).
Add tools or services: To enhance your membership site try including simple software, tools, ebooks, resources, etc. as a give-away. These can usually be found for free or at a very low cost online.
"Marrying services, resources or tools with content can dramatically boost your subscription rates," Gough says. "However it#146;s best to include something that doesn#146;t take up your time. Giving people a reason to return to your members only area is critical #150; tools, resources, discussion forums and quality content will do that!
"The exciting thing is, you can take your hobby, specialized knowledge or profession and turn it into a profitable membership site. Your challenge will be finding exclusive content. You can start it part time #150; something I did myself, while working a full time job. As your subscriptions increase you can plan on full time involvement in your area of interest."
Starting and running a membership site can be a lot of fun and very fulfilling, however you need to know what#146;s involved in setting one up, and then managing it effectively. Planning and allowing for auto-responders, automated sign-ups, credit card processing, automated cancellations, etc is all part of a successful membership website.
As complex as this seems, many companies offer a low cost, easy-to-use software solution. A few companies, like MembershipSiteAdvisor.com offer a free software membership management tool to subscribers, allowing them to manage all of these routine tasks. This makes it possible for almost anyone to start and market a membership site for next to nothing.
Gough is quick to challenge that "Paying for online content is
inevitable
. You can either be the one paying for it, or the one profiting from it. Ideally you#146;ll do both, and learn a great deal in the process."
For more information, resources and tools for starting and running a membership site, visit
www.MembershipSiteAdvisor.com
. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:45:12Z
Finding The Right Lawyer For Your Business
Staff
http://www.DrLaura.com/b/Finding-The-Right-Lawyer-For-Your-Business
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2010-05-07T08:45:06Z
2010-05-07T08:45:06Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Finding The Right Lawyer For Your Business
By Cliff Ennico*
www.protectingyourbusiness.com
There are two professionals every business will need early on: an accountant and a lawyer. The reasons for hiring an accountant are pretty obvious #150; you need someone to help you set up your #147;chart of accounts#148;, review your numbers periodically, and prepare all of your necessary federal, state and local tax returns. The reason for hiring a business attorney may not, however, be so apparent. A good business attorney will provide vital assistance in almost every aspect of your business, from basic zoning compliance to copyright and trademark advice to formal business incorporation to lawsuits and liability.First, some general rules about dealing with lawyers:
If You Are Being Sued, It#146;s Too Late
. Most small businesses put off hiring a lawyer until the Sheriff is standing at the door serving them with a summons. Bad mistake. The time to hook up with a good business lawyer is BEFORE you are sued. Once you have been served with a summons and complaint, it#146;s too late #150; the problem has already occurred, and it#146;s just a question of how much you will have to pay (in court costs, attorneys#146; fees, settlements and other expenses) to get the problem resolved. America#146;s judicial system is a lot like a Roach MotelTM -- it#146;s easy to get into court, but very difficult to get out once you#146;ve been #147;trapped#148;. Most lawyers agree that while nobody likes to pay attorneys#146; fees for anything (heck, let#146;s let our hair down, nobody likes paying or dealing with lawyers, period), but the fee a lawyer will charge to keep you out of trouble is only a small fraction of the fee a lawyer will charge to get you out of trouble once it#146;s happened.
Big Firm or Small Firm?
Generally speaking, the larger the law firm, the greater the overhead, therefore the higher the hourly rates you will be expected to pay. Still, larger firms have a number of advantages over smaller ones. Over the past 20 years, lawyers have become incredibly specialized. If you use a solo practitioner or small firm as your lawyer(s), it#146;s likely that they will not have all the skills you may need to grow business. I don#146;t know of any solo practitioner, and very few small firms (under 10 lawyers) that could handle your lawsuits, negotiate your lease of office or retail space, file a patent or trademark, draft a software license agreement, advise you on terminating a disruptive employee, and oversee your corporate annual meeting. Sooner or later, these #147;generalists#148; will have to refer you out to specialists, and you will find yourself dealing with two or three (or even more) attorneys.
While larger firms are more expensive to deal with, they have two significant advantages: (1) they usually have all the legal skills you need #147;under one roof#148;, and (2) they have a lot of clout in the local, regional and (perhaps) national legal community. A nasty letter from a #147;powerhouse#148; law firm with offices in 30 states is a lot more intimidating than a nasty letter from a solo practitioner who is not admitted to practice in the defendant#146;s state. Also, being connected with a large, well established law firm may have intangible benefits #150; they may be willing to introduce you to financing sources, or use their name as a reference when seeking partnership arrangements. Certainly if you run a fast growing entrepreneurial company that plans to go public (or sell out to a big company) some day, you would need to work with lawyers whose names are recognized in the investment banking and venture capital communities.
What Kind of Lawyer?
Like doctors, lawyers are becoming increasingly specialized. Someone who does mostly wills, house closings and other #147;non-business#148; matters is probably not a good fit for your business. At the very least, you will need the following sets of skills. The more skills reside in the same human being, the better!
Contracts. You will need a lawyer who can understand your business quickly, prepare the standard form contracts you will need with customers, clients, and suppliers, and help you respond to contracts that other people will want you to sign.
Business Organizations. You will need a lawyer who can help you decide whether a corporation or limited liability company (LLC) is the better way to organize your business, and prepare the necessary paperwork.
Taxes and Licenses. Although your accountant will prepare and file your business tax returns each year, your lawyer should know how to register your business for federal and state tax identification numbers, and understand the tax consequences of the more basic business transactions in which your business will engage.
Intellectual Property. If you are in a media, design or other #147;creative#148; type business, it is certainly a #147;plus#148; if your lawyer can help you register your products and services for federal trademark and copyright protection. Generally, though, these tasks are performed by specialists who do nothing but #147;intellectual property#148; legal work. If your lawyer says he or she #147;specializes in small businesses#148;, then he or she should have a close working relationship with one or more intellectual property specialists.
Tough Questions to Ask When Interviewing Lawyers.
Are You Experienced? Don#146;t be afraid to ask direct questions about a lawyer#146;s experience. If you know you want to incorporate your business, for example, ask if he or she has ever handled an incorporation.
Are You Well Connected? Your business attorney should be something of a legal #147;internist#148; #150; one who can diagnose your problem, perform any #147;minor surgery#148; that may be needed, and refer you to local specialists for #147;major surgery#148; if needed. No lawyer can possibly know everything about every area of law. If you business has specialized legal needs (a graphic designer, for example, may need someone who is familiar with copyright laws), your attorney should either be familiar with that special area or have a working relationship with someone who is. You shouldn#146;t have to go scrounging for a new lawyer each time a different type of legal problem comes up.
Do You Have Other Clients In My Industry? Your attorney should be somewhat familiar with your industry and its legal environment. If not, he or she should be willing to learn the ins and outs of it. Scan your candidate#146;s bookshelf or magazine rack for copies of the same journals and professional literature that you read. Be wary, however, of attorneys who represent one or more of your competitors. While the legal code of ethics (yes, there is one, believe it or not) requires that your lawyer keep everything you tell him or her strictly confidential, you do not want to risk an accidental leak of sensitive information to a competitor.
Are You a Good Teacher? Your attorney should be willing to take the time to educate you and your staff about the legal environment of your business. He or she should tell you what the law says and explain how it affects the way you do business so that you can spot problems well in advance. The right lawyer will distribute such freebies as newsletters or memoranda that describe recent developments in the law affecting your business.
Are You a Finder, a Minder, or a Grinder? Nearly every law firm has three types of lawyer. The #147;finder#148; scouts for business and brings in new clients; the #147;minder#148; takes on new clients and makes sure existing ones are happy; and the #147;grinder#148; does the clients#146; work. Your attorney should be a combination of a #147;minder#148; and a #147;grinder#148;. If you sense that the lawyer you are talking to is not the one who will actually be doing your work, ask to meet the #147;grinder#148;, and be sure you are comfortable with him or her.
Will You Be Flexible in Your Billing? Because there is currently a #147;glut#148; of lawyers, with far too many practicing in most geographic locales, lawyers are in a position to have to negotiate their fees as never before, and it is definitely a #147;buyer#146;s market#148;. Still, there are limits #150; unlike the personal injury lawyers who advertise on television, business lawyers almost always will not work for a #147;contingency fee#148;, payable only if your legal work is completed to your satisfaction.
Most lawyers will charge a flat one-time fee for routine matters, such as forming a corporation or LLC, but will not volunteer a flat fee unless you ask for it. Be sure to ask if the #147;flat fee#148; includes disbursements (the lawyer#146;s out of pocket expenses, such as filing fees and overnight courier charges), and when the #147;flat fee#148; is expected to be paid. Many attorneys require payment of a #147;flat fee#148; up front, so that they can cover their out of pocket expenses. You should always ask to #147;hold back#148; 10% to 20% of a flat fee, though, in the event the lawyer doesn#146;t do the job well.
Lawyers will be reluctant to quote #147;flat fees#148; if the matter involves litigation or negotiations with third parties. The reason for this is bluntly stated by a lawyer friend of mine: #147;even though it#146;s a transaction I#146;ve done dozens of times, if the other side#146;s lawyer turns out to be a blithering idiot who wants to fight over every comma and semicolon in the contracts, then I can#146;t control the amount of time I will be putting into the matter, and will end up losing money if I quote a flat fee#148;. In such situations, you will have to pay the lawyer#146;s hourly rate. You should always ask for a written estimate of the amount of time involved, and advance notice if circumstances occur that will cause the lawyer to exceed his or her estimate.
If a lawyer asks you for a retainer or deposit against future fees, make sure the money will be used and not held indefinitely in escrow, and that the lawyer commits to return any unused portion of the retainer if the deal fails to close for any reason. You should be suspicious of any lawyer who offers to take an ownership interest in your business in lieu of a fee.
One last thing: don#146;t forget to follow your instincts and feelings. You should be able to communicate openly and freely with your attorney at all times. If you feel you cannot trust a particular lawyer or you believe the two of you have different perspectives, keep looking. Just remember that #147;Ally McBeal#148; is not reality: good looks and a dynamic personality are not as important in a lawyer as accuracy, thoroughness, intelligence, the willingness to work hard for you, and attention to detail. As a former client once told me, #147;My father always said #145;never trust a lawyer who has 20/20 vision and wears Armani.#146; I chose you as my lawyer because you look like you work for a living.#148; The right lawyer for your business will take that as a compliment.
CLIFF ENNICO, best known as the host of the PBS television series #147;MoneyHunt#148;, is the author of the nationally syndicated newspaper column #147;Succeeding in Your Business#148; and the legal correspondent for the Small Business Television Network at
www.sbtv.com
. You can find out more about him at
www.protectingyourbusiness.com
. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:45:06Z
Stephen King On Small Business, And An Ebay Horror Story
Staff
http://www.DrLaura.com/b/Stephen-King-On-Small-Business,-And-An-Ebay-Horror-Story
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2010-05-07T08:45:05Z
2010-05-07T08:45:05Z
Staff
2010-05-07T08:45:05Z
Little Adventures - "Adorable Dress Ups at an Affordable Price"
Staff
http://www.DrLaura.com/b/Little-Adventures---Adorable-Dress-Ups-at-an-Affordable-Price
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2010-05-07T08:45:03Z
2010-05-07T08:45:03Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Little Adventures - "Adorable Dress Ups at an Affordable Price"
By Jenny Farnsworth
www.littleadventures.com
As a mother of five, it is a challenge to make ends meet each month. I ran a day care business for two years so I could remain home with my children. As a day care provider, I discovered how much children love to dress up. I went out to purchase some dress ups but was very disappointed. There were no dress ups on the market that met the needs of an active child. I decided to design dress ups for children that were made of quality fabrics, were washable and comfortable. I tried them out on my own children as well as the day care kids. The children loved them so much that many mothers expressed an interest in purchasing them. I saw this as a great opportunity to create a way to get out of the daycare business once and for all. I approached my friend Heather, the mother of one of the children in my day care, with the idea of starting a dress up business.
It has not been easy. Pregnant with my fifth child, I have memories of Heather and I sewing hundreds of costumes in the basement after the kids had gone to bed. Sometimes we were nearly in tears. The machines never seemed to cooperate when we were facing deadlines. Broken needles and jammed threads frustrated our efforts. To help us get through the struggles, our husbands tried to make us laugh and helped out a little more at home. There were times we wondered if our business was going to fail, which would have forced me to return to daycare or find employment elsewhere. I desperately wanted to stay at home with my kids and that motivated me to push my own limits. Heather and I decided to look into a local factory where we could turn the sewing over to someone else freeing us up to grow our business. In order to utilize a factory, we faced minimum requirements which meant large, expensive fabric purchases on our tight budget. I remember the big freight truck arriving and filling my driveway with fabrics in every color of the rainbow. I sat next to the pile wondering what I was going to do with all that fabric if our business did not succeed. Amazingly, that fabric was quickly sewn into hundreds of costumes that all sold. In fact, we outgrew the factory and were forced into other options. We currently have our dress ups sewn at a factory dedicated to our products in a small town in Idaho where the economy is depressed and many people are in need of jobs. We also employ five stay-at-home moms to make our accessories.
Here we are two and a half years later. We are able to be full time moms to our seven kids. Although we are up late with the business (as most work begins after bedtime hugs) and up early with the kids, we wouldn#146;t have it any other way. We love what we do and are proud to say that We are our kids' moms!
We believe that no matter the circumstances, all little girls are princesses and deserve to feel special. We have seen the joy of our own little girls as they dance and play as princesses. We would like to share that same experience with Dr. Laura#146;s kids and allow some to escape their circumstances, if only for a moment, and become princesses. We consider it an honor to donate to Dr. Laura#146;s "My Stuff Bags" program. We hope that as our at-home business continues to grow, our donations will be able to grow as well.
Little Adventures
Email:
info@litteadventures.com
Wholesale Website:
www.littleadventures.com
Retail eBay store:
www.stores.ebay.com/mydressuptrunk?refid=stores
Permission granted for use on DrLaura.com
Staff
2010-05-07T08:45:03Z
Some Really Cool Things I Learned At Ebay Live!
Staff
http://www.DrLaura.com/b/Some-Really-Cool-Things-I-Learned-At-Ebay-Live!
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2010-05-07T08:45:01Z
2010-05-07T08:45:01Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Some Really Cool Things I Learned At Ebay Live!
By Cliff Ennico
cennico@legalcareer.com
If you are selling stuff on eBay, and missed last weekend#146;s eBay Live! conference in New Orleans (co-sponsored by eBay and Entrepreneur magazine), shame on you! More than 12,000 of your competitors were there, and they came away with some great advice about how to build their eBay businesses from over 100 of America#146;s leading business experts (including myself, who spoke on how to avoid being sued by disgruntled buyers).
When not speaking myself, I tried to attend as many of the classes, workshops and roundtable discussions as I could. Here are some of the best tips I picked up:
To see some of the weirdest things being sold on eBay, go to the home page and type #147;one of a kind#148; or #147;OOAK#148; into the search engine (Jim #147;Griff#148; Griffith, author of #147;The Official eBay Bible#148;) #150; a warning, though, some of this stuff is not for the squeamish
When choosing #147;keywords#148; to advertise your auction sites on the popular search engines (such as Google or Yahoo!), do not use somebody else#146;s registered trademark, as the trademark owner can sue you for infringement (Catherine Seda, author of #147;Search Engine Advertising#148;)
Don#146;t rely on accountants to tell you about all the tax deductions you can take when running an eBay business; you will be able to deduct more than most accountants will allow if you learn the rules yourself (Barbara Weltman, author of #147;J.K. Lasser#146;s Small Business Taxes 6th edition#148;)
More than 20 states have adopted legislation in support of the Streamlined Sales Tax Project (SSTP), which requires out-of-state vendors such as eBay sellers to charge sales tax when selling to in-state consumers; a 1992 U.S. Supreme Court decision forbids states from enforcing the SSTP, but legislation is pending in Congress to reverse this decision and allow states to pursue out-of-state vendors who don#146;t comply with the SSTP (Steve DelBianco, Executive Director of the NetChoice Coalition)
When hiring employees, don#146;t look for #147;safe#148; people #150; people you know won#146;t sue you if things don#146;t work out; instead, hire the #147;right#148; people for your business and learn to manage them the right way so lawsuits won#146;t happen (Eric Winegardner, Director of Product Certification for monster.com)
Don#146;t just list your auction on eBay#146;s site in the United States; for a small additional fee, you can list your auction on each of eBay#146;s overseas sites and reach millions of overseas buyers who don#146;t frequent the U.S. site (John and Kim Kincaid, CollectorBookstore.com)
According to a recent survey, 83% of eBay buyers won#146;t even look at your auction site unless you have posted a digital photo of the item you are selling (#147;Beginning Digital Photography#148;, a free handout from the Hewlett-Packard Corporation)
By listing your auction site with eBay Giving Works, you can donate a portion of each sale to your favorite charity (#147;eBay Giving Works#148;)
Consider changing your eBay user name to your Website address #150; that way people interested in your auction listings can visit your Website and see what else you#146;ve got for sale that isn#146;t on eBay (Chris Murch, President of the eBay Radio Network)
If you still don#146;t think eBay isn#146;t #147;big business#148; these days, more than 100 entrepreneurs rented booths on the trade show floor at eBay Live! to talk about the resources they provide for eBay sellers. Some of the more interesting exhibitors I talked to were:
The Disabled Online Users Association (DOUA), a nonprofit organization formed to helped handicapped people start eBay businesses out of their homes
iSold ItTM, a nationwide franchise of eBay consignment shops formed to help sellers who don#146;t have Internet access, can#146;t figure out how a digital camera works, or otherwise do not want to list their auctions themselves
Diane Kennedy#146;s TaxLoopholesTM, which provides a three-day #147;tax strategy camp#148; to teach eBay sellers about all of the business tax deductions they can take
TalkinAuction.com, which helps you add audio commentary to your eBay auction listings
WhatsItWorthToYou.com, which will review digital photos of your merchandise and give you online appraisals of specific items for $9.95 each
MyStoreCredit.com, which helps you offer #147;in-store credits#148; to successful bidders in your eBay auctions that they can use if they bid successfully in your future auctions
FreightQuote.com, which calculates the shipping charges for your eBay merchandise and helps you post a #147;calculator#148; on each auction listing so your buyers can figure out the shipping, handling and insurance charges without your having to do it for them #150; really useful if you are running lots of auctions and don#146;t want to calculate shipping for each one separately.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2004 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:45:01Z
Creative Ways to Raise Money To Start a Home Based Business
Staff
http://www.DrLaura.com/b/Creative-Ways-to-Raise-Money-To-Start-a-Home-Based-Business
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2010-05-07T08:44:59Z
2010-05-07T08:44:59Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Creative Ways to Raise Money To Start a Home Based Business
Carrie Lauth is a work from home Mom of 3
If you're like many women who want to start a home based business, one of the things that may be stopping you is a lack of funds.
While there are many new Network Marketing and Direct Sales businesses that are free to join, it will take at least some money to get things rolling...money for business cards, inexpensive marketing and advertising methods, postage, your own personal products to experiment with, samples, etc.
Even if you are starting an online business that markets a service, or that has no physical product, you will need money for domain name registration, web site hosting, low cost advertising and the like.
Here are some ideas for raising the needed capital.
Get a loan
Do you have a relative who would loan you the money to get started? What about that Great Aunt who always said you'd be great in your own business? How about Mom or Grandma?
Perhaps they would accept barter (your new product, for instance...good rejection-proof way to get them hooked on it!) in lieu of repayment? Does Grandma have a shed full of stuff that she's been wanting to sell on eBay but doesn't have the energy? Would Mom like to have her house cleaned for the next few months?
Ask your sponsor for help
If you join a MLM (Multi Level Marketing company) ask your upline sponsor if they would consider buying the starter kit for you, and then taking the profits from your first parties or commission checks as repayment? Some sponsors do this already, but if not, she may be so impressed with your drive to succeed that she will say yes.
Have a yard sale
This is what I did to get started in my business. This one has twofold benefits...you're making some extra cash but also have a captive audience of people coming to you! If you're really energetic, go around to your neighbors and tell them that if they leave their castaways in a box on the curb, you will come pick them up. Do this before your sale. Slap a price tag on the merchandise and cha-ching!
Be sure to make a sign advertising your new product or service and plenty of flyers or business cards to give to each shopper.
Sell some stuff on eBay
Sell things from your own home (name brand kid's clothes and popular book titles are easy and almost always pull a good price). Go to library book sales and buy books for .10 or .25 and list those. Use your my eBay page to advertise your new website!
Release the clutter, sell a useless piece of furniture or item in your home
For me, it was the dusty electric guitar. Kitchen appliances (you know what I'm talking about here!) that were going to make your life easier, exercise equipment that makes you feel guilty when you trip over it...
Use the money you receive from your tax return
Pre-sell the product
I got this one from my beloved Kim Klaver. Go around to your tribe (the people who love you enough to do anything you say), your coworkers, neighbors, playgroup Mommies, and show them a "picture" of the product, tell them what it does, collect the checks, deposit them and order your product. You buy the product wholesale and they pay the retail price so you make a profit.
Do a quick, temporary odd job
A friend of mine just did this one. She put a sign up at a local health food market that said "Non-toxic cleaning services". (Notice that she created a niche). That day she got a call, did a job for an elderly women and made $150. Of course, she used her own nontoxic cleaning product and will probably end up getting a customer out of the deal too! Babysitting for a couple of weeks, dogsitting, housesitting...you get the picture.
Talk to your husband
Notice I'm leaving this one until last! Hopefully you have the kind of relationship where your husband will be overjoyed that you want to improve your financial standing. If you garner his support in the beginning he is much more likely to be helpful along your journey, with the inevitable ups and downs of business life.
Carrie Lauth is a work from home Mom of 3. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:44:59Z
Some Tough Questions About "Business Opportunities"
Staff
http://www.DrLaura.com/b/Some-Tough-Questions-About-Business-Opportunities
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2010-05-07T08:44:58Z
2010-05-07T08:44:58Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Some Tough Questions About "Business Opportunities"
By Cliff Ennico
This week#146;s crop of e-mails all have to do with buying a #147;business opportunity#148;, and the pitfalls of doing so.
#147;I was approached at a trade show recently by a man who is a leading computer consultant for large companies. This man told me he had an arrangement with several #145;apprentices#146; who were learning the business under his guidance. The man assigns one or more #145;apprentices#146; to work for his clients. He bills the clients for each hour an #145;apprentice#146; works, and remits all the hourly fees to the #145;apprentice#146; except for $5,000 a month, which this man keeps as a training fee. Is this legal?#148;
This arrangement falls squarely into the definition of a #147;business opportunity#148;. Generally, a business opportunity is any kind of investment program in which you are offered a chance to act as a distributor, marketing agent or reseller for a company#146;s products or services. While the most common business opportunities involve vending machines (you buy the machines from the seller, find locations for them, and stock them with the seller#146;s stuff in exchange for a portion of the proceeds), and farm animals (you buy a training kit and supplies, raise the animals in your back yard, and sell the animals back to the seller for slaughter when they#146;re fully grown), any type of #147;distributor#148; or #147;affiliate program#148; arrangement can be a #147;business opportunity#148; if it#146;s not put together carefully. Business opportunities often must register with state government agencies (see next question) and comply with a host of state laws designed to protect consumers against fraudulent investments, and I#146;ll betcha this guy hasn#146;t done any of that.
I#146;m particularly troubled by the $5,000-a-month fixed fee, which #147;apprentices#148; must pay regardless of the number of hours they actually work. What happens if this guy doesn#146;t give them enough work to cover the $5,000 fee #150; do the #147;apprentices#148; pay the training fee out of their own pockets? I also think there#146;s a serious chance the #147;apprentices#148; will be considered #147;employees#148; of this man for tax purposes, since he determines where and when they work, and how much they get paid. Next time you see him, show him this column, and tell him he needs to talk to a lawyer, pronto.
#147;I am thinking of buying a business opportunity, and have just recently learned that the business opportunity has not registered in my state, as the law requires it to do. The process will take months, though, and I really want to get going. What is my exposure if I go ahead and buy into the business opportunity anyway?#148;
Most states require business opportunities to register with a state government agency (usually the same one that regulates offerings of securities in the state) and/or disclose certain information to people, before they are allowed to sell the opportunity to state residents. While these laws impose fines and penalties on a business opportunity that fails to comply, they are often quite vague about the consequences to the person who buys an unregistered business opportunity. Most state laws I#146;m aware of allow an unhappy purchaser to obtain a full refund of his money within a period of time (usually six months or 1 year) after learning that a business opportunity hadn#146;t registered. This #147;rescission right#148; usually disappears, however, if you knew at the time you bought into the business opportunity that it wasn#146;t registered. Since you know this business opportunity isn#146;t registered in your state, you probably will not be able to get your money back if it turns out to be a sham.
But be careful: if the business opportunity wants you to solicit other prospective purchasers in your state, you may be legally responsible for registering the business opportunity with your state government, and paying the fees out of your own pocket. You may also be subject to the same fines and penalties as the out-of-state company if they catch you selling an unregistered business opportunity within the state.
#147;I am looking into a business opportunity where I buy vending machines and lease them to area businesses. I#146;m a little nervous, though. They want a lot of money up front for their training materials, plus I have to pay cash when buying the machines from them. When I talk to the president, it#146;s always on his personal cell phone. The company address is a P.O. Box, they don#146;t have a Website, and the e-mail address is at America Online. How can I find out more information about this business opportunity?#148;
I think you have all the information you need about this one, pal. Walk . . . no, run away as fast as you can. This one has #147;F-R-A-U-D#148; written all over it. If you buy into this, I foresee a basement full of vending machines you can#146;t give away, and a very angry spouse.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2004 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:44:58Z
Stickers of the Month Club
Staff
http://www.DrLaura.com/b/Stickers-of-the-Month-Club
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2010-05-07T08:44:56Z
2010-05-07T08:44:56Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Stickers of the Month Club
By Diane Rosenberg
www.creativemailings.net
Listening to Dr. Laura gave me the strength to quit my job and open my own business.
I started listening to Dr. Laura about 8 years ago when my husband walked out on me and our sons who were 1 and 2 at the time. He left us with nothing. I was in an expensive house with a new car and two babies to feed. My dream was to be a stay-at-home mom so I could raise my children, but to my dismay my dream was suddenly shattered.
In search of a job I found a sales position selling advertising. Working in sales provided me with flexible hours so I could take time off to be with my kids for all of their activities. I tried to run my life as if I was a stay at home mom.
Things were pretty good, I made good money and the kids were growing up to be wellbehaved happy children until about two years ago when my company was bought out.Unfortunately, the new company had no tolerance for families. I tried to side step them for a while but eventually I had to decide what I wanted to do with my life and how I would support myself and the kids.
I could have looked for another position in another company but the nausea I felt every time I considered it made me realized that that wasn#146;t the right thing to do either. So I started my own home business. It#146;s a sticker of the month club for children 3 to 6 years of age. It is similar to a magazine subscription but instead of getting magazines the children receive stickers each month. Both kids and parents love it and it provides hours of entertainment. I love it because I can finally live my dream and my kids love having me home. Plus, they tell me that I#146;m calmer now that I#146;m not working outside of the home. Proof that when you enjoy your work and you#146;re home raising your children the entire family benefits.
I came up with the idea when my oldest son turned 3 years old. A friend gave my son stickers as a birthday gift and said that he would be receiving them each month. This was what inspired me to eventually start my own Sticker of the Month Club. One of the first things I observed when my son received his stickers was that he didn#146;t get very many each month and several of them were duplicates from previous months. I knew I could do a better job and I thought it would be fun. I kept everything that this company sent me and put it away in my cabinet. From time to time I would mention the idea to friends and family and everyone shrugged at the idea and said it wouldn#146;t make any money. But, when my employer changed for the worse the stickers of the month idea just started sounding better and better. It took seven years for me to gain the strength to say #147;I can do this and it#146;s a good idea and it will work!#148;
As soon as I made up my mind and decided that starting the stickers of the month club was my goal I had to figure out what to do first. I knew I needed to come up with a name for my company that was catchy and would let people know what I was selling. The name I decided on was Creative Mailings.
Once you choose a name, you need to find out if the area you reside in needs youto have a business license and if you need to register your company name. Whenyou do this you also need to publish a fictitious name in a local paper. Make sure you check the cost for several different newspapers because some of the local papers are very pricey.
The next thing that you might want to do is get a business phone line. I have a localand an 800 number. When you do this you should really sit down and plan out how andwhere in your home you will operate your business it is best to set a separate corner orroom aside just for your business.
You will also need to get a sellers permit and a business bank account. I think it#146;simportant to keep your business expenses separate from your personal spending.
The toughest challenge for me was getting money to finance my business venture. I looked into all sorts of loans and decided to take out an equity line of credit. That worked best for me because I wasn#146;t sure exactly how much money I would need. This allowed me to take a little out at a time and only pay for the amount that I borrowed. My monthly payment was much smaller than if I had taken a loan for a large amount.
A few other things I had to find were vendors for merchandise, a good graphic artist to design a flyer or a brochure, a website and ways to advertise and promote my business.
After you get your feet wet you will start revamping your ideas because you will findthat things that sounded so great in your head when you were getting started sometimes are not that great in reality. You may want to find a person who has a business to be your mentor or the Small Business Association has information to help you get started so you can develop a thriving business.
Permission granted for use on DrLaura.com
Staff
2010-05-07T08:44:56Z
Golden Tennis Shoes
Staff
http://www.DrLaura.com/b/Golden-Tennis-Shoes
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2010-05-07T08:44:54Z
2010-05-07T08:44:54Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Golden Tennis Shoes
by Chellie Campbell
#147;To do good marketing, you want to attract the people you want#133;and repel the people you don#146;t want!#148;#151;Unknown
If there#146;s one thing I#146;ve learned traveling along this life#146;s highways and byways, is that in all things it is best to completely be yourself. Take a stand for yourself, choose your likes and dislikes, and stand proudly in them. When you are clearly you, other people will see it and know you for who you are. This simplifies life immeasurably. Your people will be drawn to you more quickly, and the other people will pass you by.
I was thinking about this as I drove to the Jonathan Club downtown Los Angeles, to speak to the Los Angeles Chapter of NAWBO (National Association of Women Business Owners). I was dressed in my usual #147;Give-a-speech-costume#148;#151;blouse, blazer, pants and gold tennis shoes. Mind you, I wear gold tennis shoes all the time. I have casual gold tennies that have a quilted pattern and gold beads for everyday wear, but for speeches, I wear my dressy gold tennis shoes that have rhinestones all over them. I had thought briefly of wearing #147;real shoes#148; to this event, since this was a rather corporate environment, but then I decided just to stick with my usual style.
Wouldn#146;t you know, my momentary hesitation manifested itself in a challenge issued to me by one of the Jonathan Club employees in the lobby. #147;Excuse me, miss,#148; he said frowning disapprovingly at my feet, #147;but we don#146;t allow tennis shoes in our club.#148;
Oops! Caught already. I grinned up at him and said, #147;I#146;m terribly sorry, but I am the speaker this evening and this is my costume!#148;
He wasn#146;t buying it. #147;Don#146;t you have any other shoes?#148; he inquired.
#147;No,#148; I shrugged, #147;not with me.#148; Oh, dear, I thought, am I going to be thrown out? Barred from the club? My eyes widened and I said, #147;You know, I#146;m sure your dress code means tennis shoes as in
gym
shoes. These are clearly not gym shoes#151;they are gold mesh, dressy shoes with diamonds on them!#148;
He paused for a long moment as he thought this over. It must have made sense to him, because he said, #147;Okay#133;but hurry!#148; He wanted me out of his jurisdiction as soon as possible, and I was happy to oblige him as I scurried upstairs to the meeting room.
The meeting was fabulous with lots of great people#151;no one else in tennis shoes, I noted. (They must have been tipped off to the dress code.) The reactions to my gold shoes are always very interesting. Lots of people smile and comment how they just love my shoes, how comfortable they look, etc. I know these are #147;my people.#148; And of course, some people don#146;t like them#151;one woman told me after the talk that I should look more professional if I was going to talk about a serious subject like money. I just smiled, because I think that#146;s one of the problems I#146;m trying to solve#151;that people are too serious about money.
So don#146;t judge me until you walk a mile in my gold tennis shoes.
Today#146;s Affirmation: #147;I am a powerful, fun-filled person, swinging passionately through the chandeliers of life!#148;
Chellie Campbell is the author of
The Wealthy Spirit: Daily Affirmations for Financial Stress Reduction
, selected as one of Dr. Laura#146;s book recommendations in March, 2003. She created and teaches the
Financial Stress Reductionreg; Workshops
on which her book is based in the Los Angeles area and gives programs throughout the country. Her free e-newsletter is available at
www.thewealthyspirit.com
. Permission granted for use on Dr.Laura.com.
Staff
2010-05-07T08:44:54Z
Avoiding Home Business "Time Wasters"
Staff
http://www.DrLaura.com/b/Avoiding-Home-Business-Time-Wasters
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2010-05-07T08:44:52Z
2010-05-07T08:44:52Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Avoiding Home Business "Time Wasters"
by
copy; 2004 Priscilla Y. Huff
We all have the same 24 hours in a day -- but some of us make better use of those hours better than others -- especially when it comes to managing a home business#146; operations amidst all the other demands on our lives.
What are some examples of #147;time-wasters#148; and causes of wasting one#146;s time?
Having work-related items scattered about the house and not keeping or returning those work-related items in the office area where they belong!
Solution:
When possible, conduct most of your business work in your home office or space. If you do have to take it out of the room, return it immediately when you are finished so important papers or phone numbers or other work-related items do not become misplaced or #147;buried#148; amongst household #147;piles.#148;
Unnecessary telephone usage can be a large disruption in one#146;s work schedule.
Solution:
Thankfully, phones#151;ground lines or cellular phones#151;are easily set-up to take messages. Unless you are expecting an important call, let voice mail or another answering system handle your calls and then periodically return them all in one block of time
Not setting specific work hours.
Solution:
If you set specific times for your work#151;while factoring in scheduled breaks and allowing some extra time for unexpected interruptions#151;you will be accomplishing the #147;must do#148; tasks in your business #147;space#148; where you can focus better in accomplishing them.
Not having a plan of action.
Solution:
You can create a daily #147;to do#148; list from a weekly plan you can draw-up each weekend. Prioritize business and personal chores; but be realistic about how many tasks you can actually accomplish. Do not overwhelm yourself with too many duties or you will become frustrated when you cannot achieve all that you hoped to do for the day.
The Clutter!!
Solution:
Hire or (or barter time with) a professional organizer! I hired one and together we filled 4 frac12; trash bags from my files and office space!! If you cannot find one in your area, go to the site of the National Association of Professional Organizers
www.napo.net
to find one in your area.
Additional Tips
One time management expert says, home business owners and managers should learn their own personal time wasters. Once known, they can then be eliminated.#148; Other time-management experts suggest that you set apart blocks of time to carry out specific tasks. For example, block out specific days and hours to run business and/or personal errands and assign yourself as many as you can do into your designated time period in order to save time and gas money. Keep a time diary of all your activities for a week and then closely analyze your most productive work times. Take advantage of technology#151;PDAs, software, daily planners, and other organizational aids to assist you in your time management.
Do you have a "time-waster," of which you are guilty? Mine is being on the Internet too long (even though I write for a number of Internet sites!). I find that if I go online at the end of my workday or at least until I finish the most important tasks of the day, I am more productive and less likely to #147;wander#148; around in cyberspace.
The challenge here of every home or small business entrepreneur is to find his or her own #147;balance#148; of business and personal-related tasks. It may take a while -- but believe it or not, you will find the best schedule that fits your business and your life! It goes without saying, that even with the best daily plan, life #147;happens#148; and is filled with unexpected #147;surprises; but that is one of the great advantages of being self-employed -- flexibility. Unlike most 9 to 5 jobs, you
can
pick up your child from school when they are suddenly sick or miss their bus, and re-schedule a task at a later time or day.
Being aware of
how
you use your time can increase your business#146; productivity, profits, and organization, while helping you also find more time for yourself and for those people who are most important to you.
FOR MORE INFORMATION
Books:
Home Based Business Mom: A Practical Guide to Time Management and Organization for the Working Woman
by Juli Shulem (Newhoff Publishing) (out of print, but look for copies in your local public or college library).
Home Management 101:A Guide for Busy Parents
by Debbie Williams
www.organizedtimes.com
Internet sites:
Organized U.com.
www.organizedu.com
www.thebusywoman.com
Susie Glennan#146;s The Busy Woman'sTM Daily PlannerTM ( Time Management Strategies and Tools for Busy Women)
#147;
Controlling Time Waste
#148; #150; article on the Women#146;s Online Business Center
Priscilla Y. Huff is the author of
101 Best Home-Based Businesses for Women
, 3rd ed.; and
The Self-Employed Woman#146;s Guide to Launching a Home-Based Business
; for business-related questions or to request a listing of resources for women entrepreneurs, e-mail Priscilla:
pyhuff@hotmail.com
. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:44:52Z
Land A Book Deal From Just Twenty Pages
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http://www.DrLaura.com/b/Land-A-Book-Deal-From-Just-Twenty-Pages
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2010-05-07T08:44:50Z
2010-05-07T08:44:50Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>LAND A BOOK DEAL FROM JUST TWENTY PAGES
By Mahesh Grossman
Author of
Write a Book Without Lifting a Finger
www.AuthorsTeam.com
My father used to tell me that you could build or fix anything with the right tools.
If you want to land a book deal, the right tool (for a non-fiction book) is called a book proposal. It consists of some marketing information, your biography, and a twenty-page sample of your book, hence the title of this article.
Even if you have written a complete manuscript, make sure you submit a book proposal first#151;not the manuscript.
Here#146;s why publishing pros want a sample instead of the whole book:
They are incredibly busy. The major publishing houses receive as many as 5000 book proposals a week. Literary agents get inundated as well. They just don#146;t have time to read complete manuscripts.
They want to know why they should invest in you. Publishing is a business. More than half of a book proposal is a business plan that explains how and why your book will make money.
They may only like part of your idea. An editor may think, #145;gee, if he writes #145;x#146; instead of #145;y#146;, I might be interested.#146; And she#146;ll tell you. But with a complete manuscript, it#146;s hard to tell someone they should have taken a different path starting on page 37. Instead, you#146;ll just hear #145;no#146;.
If publishing pros do like your idea, they need it in a form that they can present to other people. Agents present your material to editors. And editors submit your idea to an editorial board. They make the final decision, and they don#146;t have enough time to read your whole book.
THE SECRET FORMULA
If you want
significant attention
from agents and publishers, make sure your book proposal includes each of these ingredients:
A GREAT TITLE PAGE
A great title can go a long way toward selling your book. So your title page is very important. Include your name and contact information on this page.
TABLE OF CONTENTS (for the proposal)
Just list the sections of your book proposal and the pages they are on.
THE OVERVIEW
An overview is a one to three page mini-version of your proposal.
Start off with a short paragraph that#146;s an attention-grabber. This is called the hook. Look at any bestselling paperback for an example of how to write three or four sentences that will quickly grab a reader#146;s attention.
Include a paragraph or two on each of the following: the main benefits and features of your book, who its audience will be, and why they#146;ll buy your book instead of another one that is already published. Add a paragraph that explains why you#146;re especially qualified to be the author of this text.
THE AUDIENCE
Prove to an agent or editor that there are enough people interested in your subject to make your book worth publishing. Make sure you use statistics.
THE COMPETITION
For this section, answer these two questions:
What are five or six of the bestselling books that compete with yours?
How does your book differ from each of those books? What does your book do better than they do?
Write six short paragraphs, one per book, about what your book does better than each of these books.
ABOUT THE AUTHOR
Show why you are qualified to write on your particular topic here. Also mention your general writing experience. Mention anything that indicates you have a built-in audience for your book.
FORMAT
What will your book look like when it#146;s published? Describe it here.
How many words will it be? (A double-spaced manuscript page contains 250 words.) How long it will take you to finish? (Take your best guess and then add three months.) What format do you want it to be published in#151;hardcover, trade paperback, or mass market paperback? Will there be any drawings or photographs?
PROMOTION STRATEGIES
Publishers need to be convinced that your book will sell. Show them how you plan on getting your book in front of the specific target audiences you mentioned earlier in the proposal. Will you hire a publicist? Do you speak in front of groups? Do you have a syndicated column, or an e-zine with lots of subscribers? Are you planning on starting off with a great media event for charity? You need to have some plan so that people can become aware of you and your book.
OUTLINE
This section is a short outline of your book.
CHAPTER SUMMARIES
Build evidence that you have a whole book, not just a long magazine article. Briefly describe the material you will include in each chapter. Use at least half a page, but don#146;t go over a full page per chapter, unless you have a really good reason.
SAMPLE CHAPTERS
What do agents and editors want to see in your sample chapters? Your knowledge, your heart, your personality and your writing skill.
Include about twenty pages of your book, or one to three chapters. Start each chapter in a way that will captivate readers. Use a stunning statistic, a metaphor, tell a story, or ask questions that will make your reader feel like you are writing about her. Close each chapter in a way that will leave your wanting to read more.
That#146;s the formula. Write a strong enough book proposal and you could wind up getting paid to write your book.
It may seem like the odds are against you, but as literary agent and author Peter Rubie says, #147;if you have a polished and well-written book idea, you#146;re in competition, not with all the others who submit, but with the 5 to 10 percent whose material cries out to be taken seriously by editors and agents.#148;
To look at four samples of book proposals that sold (two by first-time authors who received over 100K to write their books), read
Write a Book Without Lifting a Finger
, available at
www.writeabooktoday.com
.
For a free ezine with tips on how to find an agent, get published, publish your own book and get publicity for it, go to
www.AuthorsTeam.com
.
Mahesh Grossman is the author of
Write a Book Without Lifting a Finger
(
www.writeabooktoday.com
) and President of The Authors Team (
www.AuthorsTeam.com
), a company that helps credible experts become Incredible Authors, through ghostwriting, editing, coaching, publishing and distributing books to bookstores nationwide. He can be reached via e-mail at:
GetPublished@AuthorsTeam.com
. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:44:50Z
11 Creative Ways To Brand Your Name, Sell Lots of Books, and Become a Best-Selling Author
Staff
http://www.DrLaura.com/b/11-Creative-Ways-To-Brand-Your-Name,-Sell-Lots-of-Books,-and-Become-a-Best-Selling-Author
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2010-05-07T08:44:45Z
2010-05-07T08:44:45Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>11 Creative Ways To Brand Your Name, Sell Lots of Books, and Become a Best-Selling Author
By Randy Gilbert
Author of the best-selling book "Success Bound"
www.randygilbert.com
Amazon.com is not just another place to sell books. The proactive author, speaker, coach, and consultant can use it creatively to brand their name, sell tons of products, and create a flood of traffic to their own Internet Web Sites. Yes, you can turn Amazon into your very own "River of Gold!"
Don't believe me? Then just stand back for a moment and consider that Amazon is consistently rated in the top 15 websites for traffic and they have over 27 million customers annually (and its growing). The typical Amazon customer loves to buy books and products ONLINE, and, they are trained to USE THEIR CREDIT CARDS. They are the kind of people you want to have come to your own website and buy lots of things from you. By helping them to flow into your own sales funnel, they will become gold to you.
Also think about this for a moment. Since Amazon is the largest bookstore in the world, they have every book that is related to your subject area. Therefore, all of your perfect customers, who love the books and products, are already being filtered into your niche by Amazon.
You can get these people to your website if you take advantage of the opportunities that Amazon is giving you. If you are not introducing yourself to your potential customers every time they are logging onto Amazon, you are making a really big mistake (HUGE!).
** Your Perfect Customers Are Visiting Amazon! **
How do I know your "perfect customers" are visiting Amazon? Well, simply because they are buying every type of book on Amazon that is in your specialty area, genre, and niche. If you don't believe me, then who do you think are buying all those books?
How do I know people who shop on Amazon use their credit card online? Because that is how you buy things on Amazon. Additionally consider this, Amazon knows they are a proven source of people who buy on the Internet, because they have branched out and are now selling just about everything else under the sun.
I'll say it again, Amazon has trained millions of your potential "perfect customers" to use their credit cards online (impulsively), and you can attract them to your websites by branding your name in front of them every time they shop there.
** Amazon Is Ten Times Better Than Walmart! **
Amazon is fast becoming the Walmart of the Internet; however, size is not the issue. What makes Amazon far superior to Walmart is that Amazon is willing to share its customer traffic with you!!
Can you imagine being able to duplicate yourself and being allowed to stand in every Walmart store in the country, holding out your book and introducing yourself? And even better, can you imagine having a display of your books and products next to every other complimentary product that is sold in every Walmart? Well, that is what you CAN DO virtually on Amazon.
** Here Are 11 Golden Tips You Can Start Using Right Away **
Below are listed 11 creative ideas for turning the people who visit Amazon into your own "perfect customers." Follow these 'Golden Tips' and you will see your book sales on Amazon increase dramatically and you will lots of perfect customers to your other websites. You will literally be turning Amazon into your own river of Gold.
[Author's Side Note: I almost hate to share these, because I feel some of them have been my own little money making secrets. However, I know that if I give good things away, eventually I'll get good things in return. So here they are...please use them for your own benefit and feel free to share them with others.]
Golden Tip #1 - Tell People 'Who You Are and What You Sell'
Amazon has given you a very special place called "Your About You Area," that is a goldmine in itself. This is your own area that you have complete control over. You can post a flattering picture of yourself, and if you want, include your family or even your book.
You should use your "About Me" area to its maximum extent allowed. You can post who you are, what books you've written, how you can help people, and most importantly, which of your websites they can go visit to get your help. This description of yourself can go on and on for up to 4000 characters (~650 to 700 words).
But here's a note to the wise; be sincere, be personal, don't include any hype, and stay within Amazon's guidelines. Amazon's guidelines say no domain names, URLs, or hyperlinks. Also, no commercial advertising, promotion, or solicitation. Therefore, you only promote yourself and describe your websites and their addresses with words. I also describe what I will give to people who contact me and so far Amazon says that's OK.
To find "Your About You Area," click on your store tab. For example, if your name is Jan, then the tab will most likely say "Jan's Store." Then click on the sub-tab "Friends Favorites." Next, look down on the left of the page and click on "Your About You Area." Please, don't let this vein of gold go untouched.
To see a sample of mine, I've set up a link that will take you there directly:
http://AmazonBestSellerSecrets.com/about-me-area
Golden Tip #2 - Use Your Branded Name or Web Address as Your 'Amazon Name'
In "Your About You Area" there is a place for you to type in 'Your Name.' It may sound like a simpleton idea, but I recommend you enter the name that you want people to know you by.
Here are some possibilities. Use your branded name (ex. Randy Gilbert, Host, The Inside Success Show). You can also make it easy for people to get in touch with you if you use your branded name email address (ex.
RandyGilbert@RandyGilbert.com
, or your vanity toll free telephone number (ex. Randy Gilbert, call 866-MAUI-BOY).
Check out this vein of gold. If you have more than one specialty or branded website, you can open an Amazon account for each. All you have to do is create a separate account using another email and purchase something from that Amazon account. I have three accounts. One for my "Dr. Proactive" niche, one for my Host of "The Inside Success Show" niche, and one for my "Amazon Best Seller Secrets" niche. There's no cost, so why not?
Gold Tip #3 - Don't Be Shy, Recommend Your Book!
As you view a book that you like and it is even remotely related to your book, you should recommend your book on that page. This is a great opportunity for you to get the name of your book all over Amazon. The only caution is, don't do this in any sort of SPAM fashion. Just do it at the same pace as you normally use Amazon.
The Amazon sales page only shows one recommended book title for each category, which is the one with the most number of recommendations. So, if you have a mailing list of loyal readers and customers, you should by bold and ask them to recommend your book too.
Gold Tip #4 - Review Other Books and Let People Know You Are The Expert
If you're like me, you have just about every other book in your subject area and you have read them all (that's another reason why you are an expert). Use your expertise to review other books and review them in such a way as to give yourself credibility.
In addition to becoming known as the person people can trust (which in itself is a sufficient reason to write reviews), people will find out what books you've written because you are going to close each review with "Your Name, author of YOUR BOOK." This is a legitimate credential that Amazon wants you to use (because they like it when you sell lots of your books and they wish everybody did).
And, if you're a speaker, consultant, or coach, you can also use your other legitimate credentials. For example, I often use, "Randy Gilbert, Host of The Inside Success Show" on my radio show account. On my Dr. Proactive account I end with, "Randy Gilbert, Proactive Success Coach."
You need to be cautioned on a couple of points. You cannot sell yourself in the review or it will not be posted. It should definitely be an honest review of the book. Also, never, ever use a demeaning tone in your review. You will quickly brand yourself as vindictive and nobody will read any more of your reviews or your book. If you always have the highest respect for other people's thoughts, and you write objectively, you will earn the trust of the people who read your review and they will want to read your book too.
Gold Tip #5 - Post A Review Of Your Competitor's Book and Sell Your Book Too
In addition to reviewing all of the other books in your subject area, you should post a review of the books that might be considered your competition. For those of you who are unfamiliar with writing book proposals, these are the books you identify as being available to people who are looking for information in your subject or specialty area.
Since you're going to put your name and book title at the bottom of a very well written review that makes you look like the true expert in your field, people will take the time to search for your book and buy it too.
The thing I like most about doing this is, whenever your competitor is receiving a boost in sales, perhaps due to some good PR they've received, your name and book will be seem more often too and your own book sales will inevitably rise.
Golden Tip #6 - Use Listmania and Become THE EXPERT In Your Subject Area
On every sales page and "Your About You Area" there is an opportunity to create a list of books for whatever reason you choose - it's called "Listmania. This is one of easiest and most effective things you can do on Amazon to brand your name and become known everywhere as THE EXPERT in your subject area.
Some people create really corny lists, but not you. You are going to create lists of books in your subject area and write short (200 character) reviews that will create the picture in other people's minds of you being the top expert in your field.
I love Listmania, because it allows you to put your branded contact information (see Golden Tip 2) on every sales page for the books in your subject area (or any other area you choose). Another great thing about Listmania is that it will show up almost instantaneously, where as a review can take several days.
Golden Tip #7 - Become The "Answer-Man" on Amazon
If you are an authority in a field (which you are as an author) there is a wonderful feature on Amazon that has your name written all over it (or it should have your name all over it). It's called "So You'd Like To..." and it's the place where you can post your 'how to' articles. Use this to show the world you can help them find the answers to difficult questions and solver their pressing problems.
In your articles you will list all of the books that are appropriate to the topic, which then does a magical job of posting your articles everywhere in your subject area. So, when your perfect customer is out looking for an answer, they will quickly be introduced to you. This is the ultimate article publishing phenomenon and Amazon has brought it to you free of charge.
A word to the wise, don't pitch your book, just write interesting articles and people will want more of what you write. They will eventually want to buy your book because you are the one answering their questions and meeting their needs.
Golden Tip #8 - Look Like a Prolific Author and a Big Publisher
In addition to paper books, you can sell ebooks and other products online on Amazon. Your ebooks by the same title will be shown with the same type of page. The reviews for your ebook will even show up on your paper book. It's a fine way to get more exposure.
Under the Amazon Advantage program and you cannot list a book for sale that isn't ready for sale. However, if the e-book is ready (and the paper book has not been printed,) you can begin to sell your ebook and begin getting reviews.
If you have them, you can also sell lots of low cost ebooks (that might otherwise be booklets or reports) and by doing so make yourself look like a prolific writer. I'm discovering that you are not limited to just written ebooks either, because you can sell audio and video pdf file ebooks (the kind with links in them for listening or viewing online). This is a feature of Amazon that is still being explored, but by the looks of things, it is going to turn out to be another area of pure gold for 'infopreneurs' like us.
Another good reason to sell as much as possible on Amazon, is that your titles will automatically be available on a range of other major web sites: Borders.com, CDnow.com, Target.com, VirginMega.com and Waldenbooks.com.
Golden Tip #9 - Use Google Adwords To Put Your Domain URL All Over Amazon
Amazon is a joint venture (JV) Partner with Google Adwords and they post the top selling Google Adword ads on every book sales page that has the same keywords, which includes the words in the title and author's names. When you select the title or authors name as your keywords, your ad will show up under "Customers interested in this title may also be interested in..." on that book's page.
Although advertising on Google Adwords isn't free (you set the amount it will cost you), the payback can be enormous, especially if your product is pulling in more money than it costs to advertise. Even if it costs you money, the exposure on Amazon is worth every penny, especially when you combine it with the next Golden Tip.
Golden Tip #10 - Link Your Main Website to Each of Your Book (orproduct) Reviews.
(This tip is a 'two-fer,' so pay attention) By linking your main website page to each book's sales page that you've posted a review for, you can make your review show up on Google. I noticed this happening a short while ago when I was studying how to use the new strategy called "Link Meshing" to improve my own site's ranking on Google.
And, if you use this tip in conjunction with the Golden Tip #9, it will turbo-charge your own websites ranking, because it is very likely that your website's URL link will show up when Amazon's sales page is indexed. And, because Amazon is so popular, it will make your own website jump up; maybe even to the third, second, or (cross your fingers) first place listing. (Isn't that cool?)
I can't tell you any more right now because I'm still testing it, but don't forget to sign up for getting information about the guide when it is completed. Just send a blank email to:
Branding@AmazonBestSellerSecrets.com
Golden Tip #11 - Get your book onto Amazon's Top 100 Bestseller List
I've saved the best for last -- YOU can proactively control your sales rankings on Amazon. Therefore, by intentionally driving up the sales of your book, you can earn yourself the lifetime credential, "Best-Selling Author."
Amazon rankings are completely systematized, so when you get people to buy more of your books on Amazon, your ranking will increase accordingly. The more books you sell, the higher your book's ranking will go. Your goal should be to sell enough in one day, for your book's ranking to go all the way up to the #1 position on Amazon's Top 100 Bestseller List.
After you have followed all of the first 10, this will be a lot easier, but the others are not a pre-requisite. There is now a proven Internet marketing strategy that you can use to deliberately drive up the sales of your book. You don't need to be an online expert (you don't even need to have previous experience), you don't need to have a large mailing list (in fact, you don't need a list at all), and best of all you don't need a fortune in cash (believe it or not, it can be done with ZERO COST).
What you DO need, is a proven strategy and someone who has done it for himself (and others) and who can explain it in terms you can follow. For more tips on how to do this send a blank email to:
tips@amazonbestsellersecrets.com
There You Have It!
Now you have 11 Golden Tips, each of which will help to increase sales of your books and other products and will help brand your name as an expert in your subject area. Amazon is rich with resources, so you can be sure more gold is going to be found by me as time goes on. If you would like to be kept up to date with future explorations of how to brand yourself as an export and sell more of your info products, send a blank email to
branding@amazonbestsellersecrets.com
Randy Gilbert is the best-selling author of "Success Bound: Breaking Free of Mediocrity" (
www.Success-Bound.com
) and the creator of "AmazonBestSellerSecrets: How To Quickly and Easily Make Your Book a Bestseller on Amazon in Only 28 Days.
www.AmazonBestSellerSecrets.com
P: 540-856-3318, F: 540-856-2698, E:
randy@randygilbert.com
He can show you how to be a Best-Selling Author on Amazon! Fast, Easy, Powerful.
Randy is also the host of "The Inside Success Show," the most talked aboutradio talk show
www.TheInsideSuccessShow.com
Permission granted for use on DrLaura.com
Staff
2010-05-07T08:44:45Z
Taming The Small Business Beast
Staff
http://www.DrLaura.com/b/Taming-The-Small-Business-Beast
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2010-05-07T08:44:43Z
2010-05-07T08:44:43Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Taming The Small Business Beast
By Kristie Tamsevicius
Speaker, Home Biz Expert Mother of Two
www.WebMomz.com
Owning a small business can be a dream come true, or a nightmare if you let it be. Without careful and deliberate attention, a new fledgling business can take over your life and leave you miserable. So how do you keep your business from overrunning your life? Here are a few tips to help you lighten your workload.
Tips for lighten your entrepreneurial workload
Say No! Say no to clients who aren't your "ideal" clients. Say "no" to things that don't honor your personal needs and agenda.
Clear the clutter. Keep your work area neat, plan your day, and keep a good calendar. It's easier to stay focused and productive when you know where everything is.
Prioritize. After you make your to do list, put a star beside the top three priorities for the day for yourself and your business. Promise yourself if you get these things done, that the rest can "wait".
Uphold your personal boundaries. Say "no" to clients, opportunities, and projects that that don't feel good. Clearly communicating with your clients and family members about your policies, your work hours, and what they can expect. By letting clients know that you have set work hours, they can respect your family time. Similarly, you can tell your family not to call you with personal chitchat until your "home" hours begin. Caller ID can help you identify calls to see if they are from family, friends, or pesky sales people.
Eliminate energy drains. Is there a friend or client who drives you nuts? Are you doing overkill with housework? Is there an unresolved problem in your life?
Give yourself ample time to do everything. When you try to accomplish too many things in too little time you set yourself up for catastrophe. By working at a steady pace, making time to dream, reevaluate your goals, and making the space for change, you'll leave you'll have the energy and time for "million dollar: opportunities when they come.
Don't over promise yourself. If you need 2 days to work on a project, say it will take 3 and then pleasantly surprise the client.
Learn to delegate. Identify only those tasks, which you NEED to perform and hand the rest of to an assistant. Maybe it's time to hire a bookkeeper to help with the bills and invoicing. Is there some work you can outsource? You'll feel "lighter" not having to do tasks that drain you and can invest the newfound time and energy into growing your business.
Simplify and Systematize. Manage your time efficiently. Group similar tasks together.
Work with your body's natural rhythms. If you are more alert early in the morning, tackle those tough tasks first. If you wake up later with the 5th cup of coffee, then read your mail or perform a no-brainer task first.
Take a Break! Learn how to slow down and unwind during off hours. Stay in touch with friends. Pamper yourself. Creating a routine such as drinking a cup of hot tea, or changing to comfy clothes to help you mentally switch to "relaxation" time. Stop to enjoy the impromptu kisses, songs, and pretty pictures your kids offer you. If your child wants a moment, stop, breathe, give it to him, enjoy the special feeling of that moment then move on.
** Starting or growing a business online? Here's a free web-based guide that details exactly how to do it right...
http://www.webmomz.com/making-living.htm
Kristie is a leading expert in the areas of home based business, Internet marketing, and web development. She is the author of three books including her newest release,
"I LOVE MY LIFE: A Mom's Guide to Working from Home"
(Wyatt-MacKenzie Publishing 2003) available at Amazon.com. Join
WebMomz.com
, an online community for work at home parents. Permission granted for DrLaura.com.
Staff
2010-05-07T08:44:43Z
Are You A Work-A-Holic?
Staff
http://www.DrLaura.com/b/Are-You-A-Work-A-Holic
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2010-05-07T08:44:40Z
2010-05-07T08:44:40Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Are You A Work-A-Holic?
by Kristie Tamsevicius
www.WebMomz.com
How many of us have had a day that starts at 6 a.m. - no shower -crunching on a dry piece of toast only to come across a major client emergency? In-between getting the kids off to school, buying milk because you are out, and attending a client meeting at 2 p.m. and hoping it will end so you can get home in time to meet your child as they get off the school bus. We all have days like this, that's life, but you can make sure those days are the exception and not the rule.
When you work from home it can be hard to STOP working. Temptations such as the ringing of your business phone, the constant flow of email, and piles of paper work can easily draw you back into work mode if you let them.
Tips To Cure Work-a-holism:
Here are four ideas to help keep you for working overtime.
Set a regular schedule for work and family time.
Make a deliberate effort to stop working on time. When you are done with work, shut off the computer, and mentally shut off work. Let your family know how important they are to you by honoring them with your total presence during that family time. Honor yourself by taking that time off to live your life, renew, and dream new dreams. If you started your business to make more time for your life, then make sure you are actually taking that time to do so.
Create a routine to help you switch gears from CEO mom or dad to family time. Ask yourself what you could do to mentally change gears and prepare for the family time portion of the day. Maybe you could change from your "work" clothes to comfy sweats. Whatever "transition" routine you choose, make it something simple that you can do at the same time everyday. Locate your office in a separate area of the house. Having your office out of sight may help you forget about work. When work is done, you can shut the door and forget about it. Another idea is to get an armoire with a desk, a kind of fold out workstation. When you close the doors, your work is out of sight.
Enjoy your "off" time. Pamper yourself! Schedule regular vacations! Take time to relax! Spend time doing the things you love most. If you started working from home to spend more time with your family, then make sure you are actually DOING that. Schedule daytrips with your kids. Take time to visit a friend you have lost touch with.
POWER PAMPERING
I just feel like I can't focus today! I feel like I'm not enjoying my job like I used to. What's the matter with me? CALGON, TAKE ME AWAY!
When you are CEO, head nurse, mommy, head of janitorial services, and chief crafts coordinator, life can leave you a little weary sometimes. As a business owner YOU are your most valuable resource, so it makes sense to take care of yourself! When you start to feel overwhelmed, it's important to know when to slow down and take a break. Below you'll find 10 tips to help you take a vacation pamper and renew.
Schedule a day off. When we are the busiest, this is often when we need a break the most. Write a day in your calendar just for you. Promise to enjoy your time off. Turn off the computer, and don't answer the phone. Don't let guilt or a list of impending deadlines steal your relaxation and enjoyment for the day.
Make time for the special relationships in your life. Go on a date with your husband. Enjoy a cup of gourmet coffee with a friend. Steal away on a mommy and daughter/son breakfast. Write a special note to a friend or spouse letting you know how you feel about them. Give someone a long meaningful hug. Spend a little extra time cuddling with your children before bed.
Take time to celebrate. Make up a holiday. Invite a friend to a "just because" lunch. Order out for pizza. At our house, we have a tradition called "pajama party." When we want to celebrate, we all get into our pajamas extra early, get all our pillows and blankets, pull out the sofa bed, snuggle up, watch a special movie, and tell each other stories. This is a special treat that the whole family REALLY looks forward to!
Pamper yourself. Indulge in a candle-lit bubble bath. Listen to some soothing music. Read a juicy romance novel. Take a day at the spa. Soak up some sun at the beach. Sip a glass of wine and watch the sun set in your back yard. Why not buy yourself a bouquet of flowers?
Nurture your body. Treat yourself to plenty of sleep, eat balanced meals, drink lots of water, and take vitamins. If you've been neglecting a checkup, now's the time to schedule it! When you take care of your body, you'll have more energy and feel happier.
Get up from that chair and exercise. Sitting in your office chair all day isn't exactly the ideal workout. Head to the gym, take a walk through the park, or take a dip in the pool. Take in a game of golf, racquetball or tennis. Exercise is a proven stress reducer!
Catch a ray of sunshine. Remember the song, "I'm walking on sunshine, well...and don't it feel good"? There's nothing more energizing then feeling the sun on your face and breathing in some fresh air. Spend time in your garden, play ball with the kids, or take a trip to the park. I enjoytaking a "nature walk" right in my back yard. I walk slowly looking at each flower, and really taking each detail in again as if for the very first time.
Be a kid for a day. Forget your responsibilities for just one day. Put away your "to do list" and revel in all the things you'd like to do but shouldn't. Let your house be messy, sleep in, eat an ice-cream sundae for supper, and watch a funny movie. Make up a silly song. Put on yourfavorite CD and dance! Mix up a batch of monster size cookies! Let the little kid in you come out and play!
Renew your spirit. Often in the busyness of life, we forget to take quiet time for ourselves. I encourage you to take time to journal, daydream, read the scriptures, or meditate. In stillness, you can tune in to what really matters to you. Take time to listen to your heart; reflect on and honor the quiet voice within.
Treat yourself to a day at the spa. When you look good, you FEEL good. Get a new haircut or a manicure. Get a facial or indulge in a back or foot massage.
* Article by Kristie Tamsevicius, America'sFavorite Small Business Success Story. This article is an excerpt from Ch 10"Work/Life Success Strategies" of the new book"I LOVE MY LIFE: A Mom's Guide to Working from Home"by Kristie Tamsevicius - (Wyatt MacKenzie Publishing March 2003 Available at Amazon.com Join our community of Work at Home parents at
www.WebMomz.com
. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:44:40Z
Home-Based Business Myths
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http://www.DrLaura.com/b/Home-Based-Business-Myths
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2010-05-07T08:44:38Z
2010-05-07T08:44:38Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Home-Based Business Myths
By 2003 Priscilla Y. Huff
With the American Association of Home-Business Owners stating there are over 24 million home-business owners in the U. S. and other research findings showing that a new home business is started approximately every eleven seconds, you may be considering starting your own home venture. Making money from the convenience of your own home, being able to have more time with your family, and doing work you love sounds like the ideal work-life situation. However, realistically, there are several home-business myths that should be dispelled as you consider starting a home-based business:
Myth #1: A home-based business has no overhead.
Reality: Often as much as 50 percent of a home-based business#146; billing rate will go towards covering overhead costs, but the good news is that you can deduct from your income tax a percentage of your home-related bills if you work out of your house. It is best to check with your accountant or bookkeeper, or your local IRS office or the site,
www.IRS.gov
for guidelines about these home office/business tax deductions.
Myth #2: I will not need childcare if I work from home.
Reality: True, a home business allows you the flexibility of working your own hours, but it is still difficult, if not impossible, to conduct a conference call with a two-year-old in the same room! Truth is, a majority of entrepreneurial moms and dads have some sort of child care coverage#151;either a spouse or babysitter taking care of the children in the home while they work for a block of time; taking their children to a child care center or sitter for a few hours a day; trading coverage with another work-at-home parent, or some other arrangement. Even older children can be demanding and sometimes resentful of your business#146; demands. It is best to realistically discuss your business idea with your family and think carefully about the number of hours you will actually be able to put towards your business.
Myth # 3: If I have a home business, I will have time to clean house, continue to volunteer at church and school, cook delectable meals, taxi the kids to all their activities, and have a meaningful, personal relationship with a #147;significant other.#148;
Reality: This really is a fantasy world!! A home and small business demands more hours than a regular job#151;especially in the start-up phase. Unless you are a #147;super-woman or -man or #147;supermom/dad#148; (I know I am not!!), then you will have to prioritize the important parts of your life and phase yourself out of all but the important activities and people with which you are involved. Learn how to say #147;No#148; with a smile. On a positive note, you can use your business to help your community like providing jobs or internships to youth, being a mentor to a struggling entrepreneur, donating your product and/or services to a charity auction, and in a number of other ways. And your altruistic efforts will have the added benefit of promoting publicity for your business.
Myth #4: I have a great idea that I know will make me lots of money, and I want to start it next week.Reality: Business experts say that the amount of time and research a person puts into a business idea relates directly to the success of that business. Not to damper your enthusiasm, but one of the biggest mistakes a new entrepreneur often makes is starting her venture too soon, before thoroughly investigating the business and its trade. One woman who owns a successful home-based food delivery franchise, took a full year to research the business before she invested a single dollar. In order to grasp a better understanding of what is involved in running a business, experts recommend that you make list of business ideas that interest you, and then work for a time in a business that is similar to the idea that interests you.
Phyllis Gillis, author of Entrepreneurial Mothers, said at a seminar I attended, #147;If you think you might like to bake special desserts for caterers or restaurants, bake a hundred pies in a week to see if that is what you really want to do, fifty weeks a year!#148; Working or volunteering in the trade that interests can also give you valuable skills and knowledge you can apply later on to your own home venture and even some funds to help you start your new at-home venture. It is important to also conduct some preliminary market research to see if people need and want to pay for your business#146; products or services. Without customers, you cannot make money. Be aware, too, that it may take from two to five years until your business#146; profits can support you and your family. When you believe you have a good idea and a potential market, then you can begin to write a business plan to set your goals and the steps you will need to get your business up and operating. You may wish you could start your venture tomorrow, but taking the time to first research and plan your business idea, will pay off, literally, in the end and your business will be much more likely to succeed.
Myth #5: If I work from home, I can be much more casual in both how I dress and how I treat my customers.
Reality: Yes, you can dress in your T-shirt and sweatpants while you make business calls#151;unless you have a home office that receives customers#151;but how you treat your customers should be as professional as any business protocol dictates. Do you respond promptly to customer requests? Do you have professional-looking promotional materials? Can your customers depend on your product and service? How can customers and business associates reach you if you are not in your home office? Do you belong to any professional trade groups or associations? In other words, you can work from your home office, but you should always follow professional procedures and ethics as if you were working from an office as the CEO of a major corporation. After all, you are the CEO of your business, even if you are the only employee. Just remember to act like one, or no one will take your business seriously.
If you take the time to plan for your business, prepare yourself and your family, and persist in learning the skills you need, you can make a successful home business a reality instead of just a myth!
U. S. Small Business Administration
www.sba.gov
, 1-800-UASK-SBA (1-800-827-5722) #150; provides listing of local SBA offices that assist people in entrepreneurial ventures.
Women#146;s Online Business Center
www.onlinewbc.gov
provides a listing of these centers that are located across the U. S., and in Puerto Rico and other U. S. territories that offer business education and training to women entrepreneurs at every stage of business development.
Priscilla Y. Huff is the author of 101 Best Home Business Ideas for Women, 3rd ed. and The Self-Employed Woman#146;s Guide to Launching a Home-Based Business. She welcomes home-business questions at
pyhuff@hotmail.com
; and offers a free list of resources for women entrepreneurs to those who request it. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:44:38Z
Open a Fancy Flea Market Store
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http://www.DrLaura.com/b/Open-a-Fancy-Flea-Market-Store
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2010-05-07T08:44:34Z
2010-05-07T08:44:34Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Open a Fancy Flea Market #147;Store#148;
By Glory Borgeson
Ann and Cathy wanted to start a business together that they could do part time, that would utilize their creativity (especially Ann#146;s beautiful hand painting talent), and that would be a lot of fun. They considered opening some type of retail store, but they knew that the hours the store would be open would turn it into full-time work.
After expanding their thoughts a bit, they realized there was a flea market a few towns to the west that was open once a month on a Friday, Saturday, and Sunday. One weekend, they visited the flea market to see what types of items were sold at each booth and the types of things people were buying.
They decided that the flea market was a great place to start their business. They would find bargain items and fix them up with paint, Ann#146;s decorative painting, silk greens such as ivy, ribbon, and whatever else they could dream up. They would create their booth each month like it was a beautiful store with an antique/shabby chic look.
Their plan worked so well, that by their third month, customers lined up on Friday morning early to get to their booth first. Before long, Ann and Cathy began renting two booths to double the size of their fancy flea market #147;store#148;.
How did they do it?
First, they formed their business as a corporation, opened their bank account, and did the work needed to get set up to collect sales tax on their future sales, and to be set up to purchase some materials at wholesale. (Note: The scope of this article will not focus on the how-to#146;s of that general aspect of the business, but will focus on the activities specific to this type of business.)
From there, they started scouring garage sales, tag sales, rummage sales, resale shops, and other flea markets for items they knew would be great to start with for their first sale. They also decided which month to join the flea market and reserved an indoor booth starting with that month. They each had a workspace in their homes. Sometimes they worked alone, but they also spent time together to plan, create, and review ideas for the items they purchased. They sanded and scraped, removed rust, painted, and made all of the items they purchased become more beautiful, desirable, and sell-able.
What About Pricing?
Choosing prices for items proved to be tricky. Since theirs was not a typical retail store (where items are usually #147;keystoned#148;, meaning the cost is doubled to arrive at the sales price), they needed to be more creative and forthright in how they priced their items.
So far, the idea for this business may have sparked a few thoughts of fun possibilities, and you also get to make money! And in order to get the best price for your merchandise, I#146;m going to show you how to keep track of each item in a manner that helps you to keep your sanity.
You want to keep track of each item that you fix up and beautify in order to price it appropriately. To do that, create a form that you will use to track the cost of an item, the cost of anything you add to it, and the amount of time you spend working on it. It will include the hourly rate you choose to apply to your work. The form will help you arrive at a price for the item. You can even have a column to add the initials of the business partner who worked on the item.
Toward the bottom of the form, include a box titled #147;Price#148; to write in the final sales price.
To make the form even more useful, leave an area in the top right corner for a number. Then take the mocked-up form to a printer to create pre-numbered forms for you. This will ensure that each item has its own unique item number.
When you purchase an item that will be fixed up in any way, start a form for that item and write in the amount you paid for it. Find a way to keep the form with the item (for example, staple it to a wooden item; put it in a plastic sleeve and tape it to the item; or tag the item and write the form#146;s item # on the tag, and file the form). As you work on the piece, update the form with the amount of time spent working on it, plus the cost of any materials you add to it (i.e. the cost of silk greens put in a container; this would not include the cost of paint and other materials that you purchase to fix many items).
If an item you purchase does not need to be fixed or painted, but can be sold #147;as is#148;, keep a log sheet for these purchases. You can create a log in Excel and use Excel#146;s #147;fill-a-series#148; function to create an item number column. Perhaps you can start with #A1001 to keep these numbers separate from the other item numbers for the items you fix. Tag these items with the item number on the log. Use the log to decide the item#146;s sales price. Later, when you#146;re ready to price items that you#146;re selling #147;as is#148;, you can easily match the tagged items to the log and re-tag the item with a price tag.
For the items you fix up, you may also choose to keep a log of these items as well. This log would have the item number (from the form) and a brief description (such as #147;wooden chair#148;; #147;birdhouse#148;; #147;metal container/planter#148;). You could also add a column titled #147;Sales Price#148;. You could bring your log sheets with you to the sale as an inventory control.
The beauty of the log page and the individual item sheets is that your accountant can easily determine your cost of good sold.
You may find that, as you choose your sales price, there may not be a simple formula that is applied to price each item. More likely, you will find that as you gain experience, you will select the best sales price: a price that your customers will pay and that will yield you the highest possible gain.
Arranging Your Booth
Ann and Cathy needed a way to display their merchandise in their booth. On their purchase outings, they bought lightweight furniture pieces, crates, and bookshelves, fixed them up, and used them for their displays.
Make certain the pieces you buy for display are easy for you to fit into your vehicle and to carry. You may choose to put this furniture up for sale, or you may decide that certain pieces are working well for your displays and that you will keep them. If they display your merchandise well and are easy to transport, why not keep them? (Put a tag on display pieces you want to keep that read: #147;Display only; Not for sale#148; so that customers will not ask you for the price all day.)
Nice looking silk green pieces will make your booth look very attractive! As a business that buys wholesale (i.e. assuming you have already obtained something from your state that says you are buying to re-sell, such as a sales tax ID), you can set up an account with a wholesale florist company that sells silk greens, ribbon, and other trim. You can usually shop at these companies in person to choose exactly what you want. Check the #147;business-to-business#148; yellow pages under categories such as #147;Florists-Wholesale#148;. Also check
www.floralshops.com/wholesalefloral1.html
and click on your state for the names, addresses, and phone numbers of wholesale florists in your area. Before you make a trip to visit them, call all of them in your area to find out what types of floral items they sell. Once you know that they have the types of silk greens you are looking for, ask them about their terms for setting up an account with them. Some will require that you pay by check when you shop with them. Others will have you do that for a short time, and then will give you net 30 terms.
Use silk greens either as display pieces only, or use them in your displays and sell them, too. (If you purchase nice quality greens, people will want to buy them!) Working these silk greens into your displays will attract many people who are looking to purchase items that are #147;a step up#148; from flea market wares. And that#146;s what you#146;re selling: merchandise that is a little nicer than the average found at the flea market.
The whole look and feel of your booth will be a little nicer than the customers usually find. People will be drawn to your booth. You will go home with only a few items left over (for next month) and lots of money from all of your sales.
Use Your Booth for Marketing
Because they wanted the good word to get out about their booth, Ann and Cathy created a half-sheet flier as their marketing materials. They used plain light pink paper, some creative wording, and a creative font style. They gave one to each buying customer and made them available to people who visited their booth.
Using a word processor, you can create your own half-sheet flier to give away at your booth. Put it on pastel-colored plain paper. Choose a color that will be your #147;signature#148; color: pink? light green? baby blue? In addition to including your business name, come up with a clever phrase or tag line (for example,
#147;Creative Objets d#146;art for Your Home Garden#148;; #147;Funky Frolicking Fun from the Flea Market!#148;
). If appropriate, list some of the types of things you sell. Include the dates you will be at the flea market for the next several months (or for as long as you have booked a booth). Also include the name of the flea market, the address, and days and hours of operation. If appropriate, include your contact information (name, phone number and/or e-mail address). If you know the booth number you have reserved for future events, include the number.
People may give your marketing sheets to friends who haven#146;t seen your booth. You want them to be able to find you. When customers purchase your items, be sure to give them a marketing sheet in their shopping bag or rolled up inside one of the items they purchased.
Extra Materials
Ann and Cathy sold some breakable items, and they didn#146;t want customers having to be concerned about breakage. They purchased some plain paper for packing. (They thought about using newspaper, but they knew the newsprint could be a problem for some of their items.)
Depending on the item purchased, you may need to wrap it in some type of wrapping materials so that it doesn#146;t break. Find a local supplier of materials such as packing paper and bags. When you are first starting out, stick with inexpensive wrapping materials and bags. Try to choose similar colors (i.e. white, cream, or a pastel to match your marketing sheet) to go along with the whole theme you#146;re creating for your business.
Your Flea Market #147;Store#148;
Are you ready to create your flea market #147;store#148;? Do some up-front planning. Are you going to have a business partner or are you going it alone? Do you have an area in your home to store your purchases and fix them up? Have you checked the flea markets in your area? Have you scoped out how you#146;re going to find the inexpensive items to purchase?
Print out this article and start a #147;to do#148; list of all the things you need to do to get started. Then prioritize the list. In what order are you going to tackle the items on your #147;to do#148; list? What things can you do at the same time?
And, please, let me know how you#146;re coming along with your #147;fancy flea market store#148;!
Glory Borgeson is a small business consultant and coach who loves to work with clients by phone from her Chicago-area home office. She works with clients individually, and is also planning to hold teleclasses on the details of starting a home-based business. Please contact her by e-mail at
glory.borgeson@borgesonconsulting.com
for more information about your home-based business. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:44:34Z
Are You a Natural Party Planner?
Staff
http://www.DrLaura.com/b/Are-You-a-Natural-Party-Planner
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2010-05-07T08:44:31Z
2010-05-07T08:44:31Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Are You a Natural Party Planner?
By Glory Borgeson
Do you enjoy a great party? Do you get a charge out of planning parties?
Are you:
Efficient?
Organized?
Resourceful?
Professional?
Why not consider starting a party planning business?As with all work-from-home businesses, you'll need to decide ahead how much time per week you can devote to the business, especially if you have children at home. Consider starting small, creating small parties for busy people. Figure out how many parties per month you can reasonably handle (for example, starting small might mean doing 2 to 4 parties per month).
Jan's Story
Jan loved giving parties and loved to cook. She heard many women in her area talk about how they liked to have people over, too, but they were often too stressed out for company. Some of them worked full time or they had a "high maintenance" family. Others just didn't enjoy the cooking and other preparations that go into hosting a party. Most seemed to have the financial means to pay for some help, though.Jan figured she got an idea from these ladies in her town. What if she worked with them to plan the party and to do the cooking and other food preparation? Better yet, what if she cooked the food in the hostess' own bakeware and served the food in the hostess' serving pieces? That way, it would look as if the hostess created the meal herself.
Menus
Jan knew that she needed to have several menus to choose from. She made a list of several items, including meat and other entrees, hot vegetables, salads, breads, appetizers, soups, and desserts. She also created suggested combinations of menus for complete meals that included one of each of these that went well together.
Recipes
Jan figured that she would get requests for various sizes of parties: anything from a small intimate dinner party for four to a large party. So for each recipe, she created a Word document on her PC that included the amount of ingredients needed for various numbers of party guests. At the beginning of the recipe document she included a table. Along the left column of the table, she listed the ingredients. Across the top row, she put the number of people served. Then, in the table she entered the amount of the particular ingredient required for the particular number of servings.
Training
After checking out the party planning industry, Jan knew she might need some additional training and would need to connect with others in the industry. She looked into classes offered at her local community college and classes given through the adult education program through her high school district. She also found a couple organizations to investigate, to see if it would be beneficial for her to join now or to join later.
Associations
Check into the following associations to see if they would be a good fit for you:
#149; The International Special Events Society (ISES),
www.ises.com
Meeting Professionals, Int'l,
www.mpiweb.org
Visit local chapter meetings, if there are any in your area, prior to joining. These groups may or may not be "overkill" for you, as they also are for those business people who plan huge events. But you may find some value in them that would help you in your business. Also, some day you might want to expand your business to full time or take it in another direction, and these associations may be helpful to you as you steer your business into new areas of growth.
Suppliers
Jan soon realized that she needed to find great suppliers in her area for related items and services, such as rental businesses where she (or her hostess) could rent items such as punch bowls, punch fountains, extra chafing dishes, coat racks, tents, etc. She also got to know a couple florists, photographers, and bakery owners. She looked into party supplier businesses where she could find disposable items.
Publications Trade Shows
Jan kept up on what was happening in the party planning and party supply business by subscribing to trade publications. She read Party Paper Retailer (
www.partypaper.com
), Special Events (
www.specialevents.com
), and Event Solutions Magazine (
www.event-solutions.com
). Between the publications and the trade associations, she found out about trade shows, which showcased many vendors and offered seminars. She also looked into party-related trade shows hosted by TransWorld Exhibits, Inc. by visiting their website at
www.transworldexhibits.com
.
Pricing
Jan worked up the cost of each recipe per number of people and entered it on her recipe documents. Then she figured in her time to prepare it, plus some profit, to arrive at a sales price. She made a note in her schedule to re-visit her pricing every summer, and to have her prices effective from September 1st to August 31st.
Types of Parties
Jan was tempted to be a party "generalist", but she knew that could hurt her business more than help it. She needed to select a niche that would work well in her geographical area. Think about the area where you live. For the people who would be most likely to benefit from your services and hire you, what type of parties would they prefer?
Upscale dinner parties and cocktail parties
Children's parties
Theme parties (such as luau, 1950's, Hollywood, etc.)
What other types of parties could be popular in your area?
Getting Started
Once Jan checked with her county and state for any regulations for caterers and talked with her insurance agent about the type of insurance she would need, she decided to host some parties of her own and invite people over who would either be in the market for her services or who would be likely to talk about her business to others. Her parties showcased her new business and her creative talent. She also had simple brochures and business cards available for everyone who attended.
She decided to do three different types of parties in her home to give people a good idea of party options. She needed to see where peoples' interests would be before deciding on her niche.
Next, Jan asked three busy friends if she could do a party for each of them, without charging them for her services. They would plan it together and the hostess would pay for the food and supplies. The hostess also agreed to tell her guests that Jan was the party planner for her party, to promote Jan during the party, and to give each guest Jan's brochure and business card. This gave her the practice she needed for doing the parties and catering for other people. She told all three friends that she needed to do one upscale party for 4 to 6 people, one upscale cocktail party for a large group, and one fun theme party. Each friend hosted one of those parties. Jan created everything from great invitations to the food and beverages to the decorations (for the theme party) and atmosphere (lighting, candles, tablescapes, music, etc.).
Jan took photos at the parties hosted at her home and at her friends' homes. She put the pictures in a small portfolio. That way she could show prospective customers what her party tables, buffets, decorations, and atmospheres looked like in peoples' homes. She also included samples of the invitations in her portfolio.
More Marketing
Next, Jan spent time finding out about upscale charity fundraisers in her area, because she knew that the women attending these events tend to give a lot of parties and would be likely to hire her. She wanted to advertise in the charities' program booklets. For many of these booklets, they could use her business card at their lowest advertising fee. (Because of this, she made certain that her business card had sufficient information on the front of the card that made it clear what she did as a party planner and caterer.) For a couple charity events, she donated an "in-home dinner party for 4" for auction or raffle. Those events gave her an additional listing in their booklets and the attendees of those charity events were exactly in her target market.
Meetings with Clients Paperwork
When working with a client, Jan found that she needed to meet with them at least two times prior to the event. She tried to schedule these meetings either while her children were in school, or, for customers who worked during the day, she scheduled meetings in the evenings or on Saturday mornings when her husband could stay with their children. Other than those meetings, she used the telephone, fax, and e-mail to communicate with customers.
Once a client agreed to book a party, Jan wrote an agreement which included the date, time, and address of the party, the items and services she would provide (i.e. the menu, supplies, etc.), if she would pick up any serving pieces prior to the event from the client and when, the time she would arrive at the party location, the total price, the amount of deposit due, the amount of balance due on the day of the party, and any other details particular to the party.
Jan's Party Planning Business
Jan received a great response to the parties she created both at her home and at her friends' homes. She also started to make a name for herself in her community. She knew this would be a word-of-mouth business and made certain that people would talk about her new business to others. She let other parents know (at her kids' schools and sporting events) what she was doing, as well as people at her place of worship. She also talked about it at her health club. Her friends were very helpful, too, as they talked about her new business to their relatives and acquaintances. Some friends even kept a small inventory of her brochures and business cards to give out.
Before long, Jan was handling the amount of parties she wanted in order to put in between 15 and 25 hours per week. At first, it took her longer to do certain tasks. After a while, she shortened the amount of time she needed to spend on most tasks as she became more familiar with what was required for each party. When her children are older, she plans to grow her business. For now, the pace suits her just fine.
Your Party Planning Business
Are you ready to plan your party planning business? Do some up-front brainstorming. What do you think would go over well in your community? Who are the busy people who would like to have more parties, but their schedule just doesn't allow them to create time for planning and hosting a party on their own?Print out this article and start a "to do" list of all the things you need to do to get started. Then prioritize the list. In what order are you going to tackle the items on your "to do" list? What things can you do at the same time?
And, please, send me some pictures of your first few parties!
Glory Borgeson is a small business consultant and coach who loves to work with clients by phone from her Chicago-area home office. She works with clients individually, and is also planning to hold teleclasses on the details of starting a home-based business. Please contact her by e-mail at
glory.borgeson@borgesonconsulting.com
for more information about your home-based business. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:44:31Z
What Kind of Entrepreneur Are You?
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http://www.DrLaura.com/b/What-Kind-of-Entrepreneur-Are-You
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2010-05-07T08:44:27Z
2010-05-07T08:44:27Z
Staff
2010-05-07T08:44:27Z
How to Create a 'Virtual Assistant' Business
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http://www.DrLaura.com/b/How-to-Create-a-Virtual-Assistant-Business
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2010-05-07T08:44:27Z
2010-05-07T08:44:27Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>How to Create a 'Virtual Assistant' Business
By Glory Borgeson
Virtual assistants are one of the newest careers in work-at-home businesses. Using a personal computer, a phone, and a fax machine, virtual assistants (VAs) create value for their clients from their home office. They create their own hours, have no commute to a job, and call the shots in their own business. Some of the work a VA does during the day is administration. They do various tasks for their client as if they were at their client's office. This could include mailings to their clients' customers and prospects, creating presentations, and making reminder phone calls for appointments. The beauty of the VA business is that it is "virtual". Your clients can be anywhere: they don't even have to be in your vicinity! They can even be in a different state!
In my companion article, "
Could You Be a Virtual Assistant?
", I discussed the skills you need before deciding to become a VA. These include being organized, excellent grammar and spelling skills, good communication skills, and computer hardware and software knowledge.
How to Get Training
Some VAs learn the business from another VA. Other VAs attend a school that trains them how to be a VA. Most such schools conduct teleclasses, so you can attend from anywhere.
One VA school is called AssistU (
www.assistu.com
). Their virtual training program lasts 20 weeks.
Another school is Virtual Assistance U (
www.virtualassistanceu.com
). Their virtual training program lasts 16 weeks.
A third training program to look into is with The Virtual Wizards (
www.thevirtualwizards.com
; e-mail:
info@thevirtualwizards.com
, or call 352-242-2234).
Support
If you attend one of the VA schools, you will automatically be introduced to a support network of other VAs. You will also want to check the International Virtual Assistants Association (IVAA) (
www.ivaa.org
), The Virtual Business Group (
www.virtualbizgroup.com
), and for military spouses who are VAs, look into Staffcentrix (
www.staffcentrix.com
).
Clients and Fees
Most VAs bill at about $30 an hour or more. The rate you charge can go higher if you:
Have industry-specific education and your clients are in that industry
Gain more experience as a VA
Can do many types of work for a client without requiring supervision from the client
Have many resources and skills at your disposal
Know a little html code and can update your client's website
Some VAs bill clients for actual hours worked and break it down to 30-minute increments. They may invoice weekly or bi-weekly. Others work on retainer. They plan a certain number of hours per month for a particular client. The client pays the retainer fee at the beginning of the month. During the month, the VA keeps a log of hours worked for each client to make certain that retainer clients do not go over their allotted amounts (or, they may have an agreement in place for billing additional time). Unused hours do not roll over to the next month. VAs will often discount their hourly rate by 10% for clients paying on retainer.
You can invoice your clients using a software program such as Quickbooks, which also allows you to easily keep track of unpaid invoices. (You would also use Quickbooks to enter all of your expenses, whether paid for by cash, check, or credit card, reconcile your bank statements and credit card statements, and keep all of your data together for monthly [or quarterly] and annual tax reporting.)
You can also receive payments by credit card, if that is how your clients prefer to pay. If you sign up to use an online system, such as Practice Pay Solutions (
www.practicepaysolutions.com
), the client will get a receipt by e-mail to notify him or her of their purchase of your services after you enter the charge online.
If you give your invoiced clients, for example, "net 15" terms, you need to decide how many days past due is too long, and start contacting the client to request payment. You will find that some clients pay on time and others pay late. You will need to decide how late is too late.
If a new client wants you to just work on a project, consider asking for some money up-front. First, think about how much time the project will take, multiply that by your hourly rate, and then ask the client for one-third of that amount up front. Trust your instincts on this issue.
If a client asks you about how long a project will take you to complete, you will need to use your experience to arrive at your best estimate. It is generally a good idea to give them a range (for example, "It will probably take somewhere between 4 and 8 hours."). Also, it is best to give your estimate on the high side. This is a customer satisfaction principle in action. If you estimate on the high side, and the actual comes close to that or lower, your client will be happy. If you estimate too low and the actual comes out higher (for example, you estimate that some work will take 8 hours, but it actually takes 11 hours), your client will get a "bad" surprise and his "customer satisfaction" level will be lower.
Who Will Be My Client, and How Will I Find Them?
Who can use the services of a virtual assistant? Just about any "solo-preneur" who does not have office support staff! For example: Insurance agents, consultants, coaches, speakers, authors, caterers, artists, etc., may be able to use the services of a VA.
When you are first starting out, tell everyone you know about your new business and the services you offer. Send them a letter with your business card, and then follow up with a phone call. Ask people who they know who might be able to use your services (and give them examples of the types of businesses that might be interested).
Ask your friends for introductions to people who might be interested in your work. Join a local chamber of commerce and attend networking events. Make certain that your business card includes a brief list of your services, even if it's printed on the back of the card. Two or three months after you first notify all of your friends about your business, contact them again. Stay in front of them, reminding them of your new business.
Frequent networking in your current circles and in new groups will ensure that people are reminded of the work you are doing, and they will be more likely to remember to refer you to people they meet.
Tips for Doing the Work
Some VAs agree that they do their best work with clients who have established long-term business relationships with them, as opposed to project work or piece work. They enjoy working in 'partnership' with their clients. The longer a VA works with a client, the more she gets to know the client. This is especially important when, for example, a client gives you documentation that has errors. If you have worked with him or her for some time, you will be more likely to catch the errors than if you rarely work with them.
An area where your organization skills become of utmost importance is in following up on phone conversations with your clients. Since you have no visual cues when you are on the phone, taking detailed notes during a call with your client is very important. Just as crucial is sending an e-mail or fax to the client after the call to confirm what you've agreed to in the call. Your organization of your clients' projects must be done as if you're a project manager. You will have tight "to do" lists. Keep as much work as possible in soft copy so that you do not accumulate too much paper. Have a good PC "filing system" in Windows Explorer. Remember to back up your PC regularly.
What Software Should You Know?
Most VAs agree that you should have and know how to use Word, Excel, PowerPoint, Outlook, ACT, and Adobe Acrobat PDFWriter. Some VAs do very little PowerPoint, while others create several presentations a month. Many clients will want their documents given to them in a pdf format. Adobe's PDFWriter is very easy to use to create documents in pdf. Some VAs have learned some html code in order to make minor changes to their clients' websites. Most recommend using software such as Dreamweaver, but do not use FrontPage. Others use FrontPage for ease and convenience's sake.
You need to get to know your clients and what products you need to know in order to serve them well. Take intermediate and advanced classes in these software titles to provide a great level of skill for your clients.
Are You Ready?
Is it time to create your own "to do" list about taking steps to begin your virtual assistant business? Print this article and then start a list of the tasks you need to do to get started!
Review how much time you have to devote to this business: How much time do you have now, in 6 months, in 12 months? How many hours per week to you want to work? What skills do you currently have, and which need improvement?
Is your PC ready for this business?
After you print out this article, go through it and note what you need to do, first, to decide if this is the business for you (also see my article titled, "
Could You Be a Virtual Assistant?
"). Second, go through this article again and note what you need to do to get the business going. Make a "to do" list out of it and schedule those "to do's" into your calendar. Then follow through. And let me know about your success!
Glory Borgeson is a small business consultant and coach who loves to work with clients by phone from her Chicago-area home office. Please contact her at 630-653-0992 or by e-mail at
glory.borgeson@borgesonconsulting.com
for more information about your home-based business. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:44:27Z
Getting It Right
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http://www.DrLaura.com/b/Getting-It-Right
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2010-05-07T08:44:25Z
2010-05-07T08:44:25Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Getting It Right
Robert G. Allen
boballen@robertallen.com
In the field of marketing, "getting it right" is very important. Sometimes success can hinge on just a single digit. Take this story for example:
About thirty years ago, Joe Karbo wrote a book called
The Lazy Man's Way to Riches
. He launched his $10 book with a full-page ad in the Los Angeles Times with the headline, "How to earn $50,000 a year the lazy way". Not a single person responded! Joe didn't give up. He was a master at marketing; he knew he had a good idea and if he could only get it right, then he would succeed. He placed his ad again but with a slight change. Instead of offering people an easy way to earn $50,000 a year, he changed it to $20,000 a year. His book was a huge hit making him hundreds of thousands of dollars.
Why did such a small change make such a huge difference? At the time, a good income was $10,000 a year. Earning ten times that was not believable, but earning twice that amount was. When it became more believable, then people were able to "see" what he was offering and responded.
Extracted from
Multiple Streams of Income
by Robert G. Allen. Contact Robert G. Allen at
boballen@robertallen.com
or visit his website at
www.robertallen.com
for more information. Permission granted for this article for use on DrLaura.com.
Staff
2010-05-07T08:44:25Z
Making Money by Making Sandwiches: Boxed Lunch Catering Is A Tasty Business!
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2010-05-07T08:44:25Z
2010-05-07T08:44:25Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Making Money by Making Sandwiches:
Boxed Lunch Catering Is A Tasty Business!
Michelle Couch
mgcouch@mindspring.com
In true Dr. Laura form I have always longed to proclaim "I am my kids' mom!", but could not financially figure out how to do so. As a 30 year old woman, I guess you could say I was the victim of my own success. I focused on my career in my early twenties and by the time I married at 27 years old I was making more than my spouse in my corporate consulting job. This was fine until we decided to have children and I found it impossible to find any work that would allow me to provide the income that our family needed while allowing me to stay at home with my children. Throughout high-school and college I was always told that I could do anything that I wanted to do and be anything that I wanted to be#133;but no one told me that what I would want most of all was to be a stay at home mom.
I have never really thought of myself as "exceptional" in the kitchen and quite frankly I have never spent a lot of time cooking, but I've spent a tremendous amount of time in the Boardrooms of the firms that I consulted for in my corporate career. More times than not we held "working lunch" meetings and sandwiches were catered in for these events. So, I decided to launch my own boxed lunch catering business to cater (literally) to the corporate world that I had left behind. With an emphasis on providing upscale, gourmet boxed meals and specialty party trays, we have catered business lunches, training meetings, group outings and special events. The business is perfectly suited for stay at home moms (or moms wanting to work just a few hours per day) because of the ability to start things on a small scale and grow at a rate and pace that fits with your lifestyle. Depending on the amount of work that you are willing to do, profits could range from $100 to $1000 per week.
I have outlined for you below a few things that need to be done in order to get started:
Check with your local Health Department regarding the specific rules and regulations that apply to caterers in your area.
Legally register your business within your state and/or municipality and acquire the appropriate licenses to operate.
Identify businesses and professionals in your area who use catering services.
Go for it! Start prospecting for clients from your prospect list and start making sandwiches! You are certain to be surprised at the opportunity that exists.
---As a former consultant, Michelle welcomes the opportunity to work with you on developing a strategy to start your own catering business. She has also developed an implementation workbook which provides step by step instructions for getting your own boxed lunch catering business off the ground (based on what she has learned on her own journey). For more information, please contact her by e-mail at
mgcouch@mindspring.com
Permission granted for use on DrLaura.com
Staff
2010-05-07T08:44:25Z
Lifes Problem Solvers: Duct Tape and WD40
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2010-05-07T08:44:23Z
2010-05-07T08:44:23Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Life#146;s Problem Solvers: Duct Tape and WD40
By Chellie Campbell
www.chellie.com
#147;All of life#146;s problems can be solved with two things#151;duct tape and WD40. If it moves and it shouldn#146;t, you need duct tape. And if it doesn#146;t move and it should, you need WD40.#148;#151;Unknown
This quote makes me laugh every time I think of it. It#146;s a great image that really can be applied to life: you need duct tape to keep you on purpose in your life; to stick to your guns, stick to your ideals, stick to your goals . You need WD40 to get you up and moving; to get out of bed in the morning, to get you to the gym, get you #147;out of the box.#148;
Distinguishing when you need to use duct tape and when you need to use WD40 is vitally important. Many businesses have failed because they didn#146;t see a new product or technology on the rise and stuck to the old way of doing things playing it safe. Just like food kept in the refrigerator long past it#146;s expiration date, sometimes people stay in jobs, neighborhoods, or relationships beyond their fruitfulness. When the ship is sinking, it#146;s appropriate to #147;jump ship!#148;
Then again, it#146;s very important to use that duct tape and stay the course#151;you don#146;t want to give up on your dream just before it#146;s fulfilled. Maybe the next ship you send out is the one that will bring home the treasure, so heed the cry: #147;Don#146;t give up the ship!#148;
The creator of the copier machine took his new invention to Kodak first. The copier is a kind of camera, so it seemed a natural connection. However, the Kodak executives rejected it#151;after all, they had better quality photographic equipment already. They just didn#146;t see the business application of the invention. So the inventor went to Xerox and that#146;s why we Xerox documents rather than Kodak them. The Kodak executives had too much duct tape holding them to their known business model#151;they needed a squirt or two of WD40 to rouse them to act on a new idea. The inventor had plenty of WD40, which helped him create a new business machine, and enough duct tape to refuse to give up in the face of rejection.
So how do you know #147;when to hold #145;em and when to fold #145;em#148;? You use the duct tape and stick to your goals as long as you passionately believe in them and are committed to the process of making them happen. When you enjoy the pursuit of the dream, whether or not it is realized. When your intuition tells you to keep going. And most of all, when you know that you will succeed because you#146;re willing to do whatever it takes to make it happen.
Behind every #147;overnight sensation#148; there were years of study, failed attempts, more learning, small successes, and dogged persistence. Lots of duct tape. This is the path of achievement, and every successful person walks it. Succeed or fail, your passion and commitment to your purpose will be the WD40 that moves and inspires you to get up each day, excited about the new possibilities today will bring. If you enjoy your dream and each daily activity, you#146;ll be happy, and that will mean you are a success every day of your life.
Chellie Campbell is the author of
The Wealthy Spirit: Daily Affirmations for Financial Stress Reduction
, selected as one of Dr. Laura#146;s book recommendations. She created and teaches the
Financial Stress Reductionreg; Workshops
on which her book is based in the Los Angeles area and gives programs throughout the country. Her free e-newsletter is available at
www.thewealthyspirit.com
. Permission granted for use on Dr.Laura.com.
Staff
2010-05-07T08:44:23Z
Staying on Track When You Work From Home
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2010-05-07T08:44:22Z
2010-05-07T08:44:22Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Staying on Track When You Work From Home
by Leslie Godwin
When I had a 40 minute commute, and a long workday, I fantasized about those lucky people who worked from home. I pictured people relaxing with a cup of coffee and the newspaper each morning, since they didn't need to rush onto crowded freeways. Then, I figured, they got plenty of work done (since they had no distractions) until it was time to break for a festive lunch with the family. Then, it was back to being extremely productive until the end of the work day.
It never occurred to me that without a deadline to leave the house, that by the time I finished my coffee, ate breakfast, walked 2 Great Danes, and showered, that it would be time for lunch.
TIPS FOR STAYING MOTIVATED WHEN YOU'RE WORKING 'HOME ALONE'
Do your plans include working out of a home office, or in a home-based business? Or do you already work from home and want to be more productive?Here are some tips that have helped me stay on task instead of surfing the net or watching a high-speed car chase all afternoon.
Know what you need to accomplish each day:
Staying focused on your top priorities is especially important when you don't have an on-site supervisor to keep your attention on the big picture, or when YOU are the supervisor. It's way too easy to get distracted by what Stephen Covey calls "urgent but not important" items and lose sight of "important but not urgent" ones. In other words, don't take a non-critical phone call when you should be working on your marketing plan.
Start each day with a review of your schedule and to-do list. Do you need to write a Mission Statement? Will some market research help you better assess a new aspect of your business? Should you write a rough draft of the talk you'll be giving next week?
Get your top priority items done when you're most productive, and you won't have to go back to work after dinner to finish up something important.
Give yourself some structure
You're more likely to get that "important but not urgent" item checked off your to-do list if it's scheduled for 11 AM on Tuesday, and not just in a file somewhere on your desk.
Help your family and friends understand that you're working
When your spouse, neighbor, or mother-in-law pops in, say, "I'm working now, but I can take a break at [specify time]." Your mother-in-law may never fully grasp that you're on the job, but your spouse, neighbors, and friends should respect this boundary.
Type up a sign that you can tape to your front door when you're on an important call or on a deadline that says, "In meeting, please don't interrupt."
When a child pops in:
If you're the primary caretaker of children, working at home with kids is like bringing them to work with you, only worse. Working from home is NOT the same as being a stay-at-home parent. If you're NOT the main person responsible for childcare duties during the workday, and your child pops in, please don't say, "I can't now, I'm working." Your child will always remember that mantra, and it'll eventually cost you thousands of dollars for their psychotherapy. It's better to give them your full attention for a few minutes, then either invite them to bring a book or homework in and join you, or tell them you'll see them at [specify time] ... and stick to it!
Remember why you wanted to work from home
Build some fun activities into your day. Schedule breakfast with one child one week, another the next. Walk your dog when you hit the wall on a project to get a fresh perspective.
And try not to make your friends and colleagues envious that your commute takes less than a minute.
Leslie Godwin, MFCC, is a Career Life-Transition Coach specializing in helping people put their families, faith, and principles first when making career and life choices. She publishes a free email newsletter on career and life transition. To subscribe, email
godwinpss@aol.com
and mention that you'd like to be on the email newsletter list. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:44:22Z
Cash in on Your Expertise
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2010-05-07T08:44:20Z
2010-05-07T08:44:20Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Cash in on Your Expertise
Jillian Coleman copy;2003
www.GrantMeRich.com
Even though I#146;ve never met you, I know one thing about you. You are an expert.
Don#146;t shake your head and smile that shy, self-deprecating smile. Modesty is not the name of the game here. This is about identifying your expertise, owning it, and parlaying it into money.
How can I be so sure you#146;re an expert? Easy. Everyone is.
Think about it. It#146;s impossible for any of us to go through life without developing a high level of competence in at least one area, and probably more than one. What is yours?
Maybe you cook amazing Mexican food. Maybe you convinced your two-year-old to sleep in his own bed. Maybe you make your own clothes, and could show someone else how to do it, too.
Maybe you recently bought a sound system, but first you spent months comparing products and features. Maybe you can do ten basic repairs on your car, or your bike. Maybe you know everything there is to know about Pink Floyd.
No matter what your area of expertise, there are people out there who want to learn what you already know. And tens of thousands of them are surfing the Internet, right now, looking for you.
Despite early belief that the Internet was going to be all about shopping, recent marketing reports show that most people go online for one reason: information. Information products are the hottest products on the Internet today. Increasingly, this information is delivered in the form of e-books.
All right, I saw you wince. Writing a book takes years, doesn#146;t it? Well, writing the Great American Novel might take a while, but writing an e-book is very different. Electronic books are a form unto themselves, written with a different goal than printed books.
With e-books, the sole objective is to transmit information. Visitors to the Internet want to locate information, get access to it, read it and absorb it #150; quickly. They don#146;t care about a beautiful cover, or the heft and feel of the paper and binding, or how a book looks on a shelf. They want information, succinctly presented.
An e-book must be only as long as it needs to be, to transmit the information. Many e-books are thirty pages of 16-point type, but each page is packed with the information the reader wants, and nothing else. A good e-book is a quick, enjoyable read.
After you write your e-book, publishing and selling it are much simpler than you may imagine. The Internet marketplace is responding to the demand for information with an array of resources for the e-book publisher.
You can take the text from your word processing program and put it into a PDF file such as Adobe Acrobat, or you can use one of the web-based publishing programs. The whole process can be completed in less than half an hour.
You don#146;t need your own website to sell your e-book. There are a number of sites that, in return for a percentage of the sales price, will display your e-book and allow buyers to pay by credit card and download their purchase immediately. Some of these sites have affiliate programs, so that website owners who believe your book might be of interest to their visitors can also offer it for sale. In those cases, you share a percentage of the sales price with the affiliate.
What you do need is a good sales letter. In fact, I#146;d suggest that you learn the basics of writing a good sales letter and put as much effort into that as you do into writing the e-book. The sales letter introduces the potential buyer to the book, and is displayed on the sales site.
You can also develop affiliate sellers yourself, by offering your book through websites you identify. For example, if you are an expert golfer, and you#146;ve written a book describing your techniques, approach the owner of golf or sports-related sites. Many of these sites offer a newsletter to their visitors, and might want to feature your book in their e-zine.
So there you have it. Identify your area of expertise, spend a week or two putting it down on paper, format it, write your sales letter, and put it up for sale. Then spend five or ten hours each week marketing it. When those monthly checks start rolling in, you might decide to get to work on book number two!
Jillian Coleman is a consultant to businesses and non-profit agencies. Her website,
www.GrantMeRich.com
is a resource site for small business, grant writers, and consultants. To learn more about this topic, visit the site and click on #147;e-Books#148;. Jillian is the author of books related to grants and business, including Big Bucks for Free: The Complete e-Guide to U.S. Government Grants, and Build Your Small Business Now! Secrets of Success for Entrepreneurs.
Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:44:20Z
Top 10 Components of your Entrepreneurial Marketing Plan and 21 Key Items to Track for Results!
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2010-05-07T08:44:19Z
2010-05-07T08:44:19Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Top 10 Components of your Entrepreneurial Marketing Plan and 21 Key Items to Track for Results!
Kristie Tamsevicius
www.WebMomz.com
The key to any success business venture is havinga solid plan. While many entrepreneurs have abusiness plan, they fail to plan their promotionalefforts. A marketing plan will help you to create a cohesive approachthat best helps you to meet your goals. It should include specificobjectives, strategies for realizing each objective, and benchmarks formeasuring your results. Below are the 10 key items to include in yourmarketing plan and 21 ways to track your promotional results!
EXECUTIVE SUMMARY - Create a mission statementabout what specific objectives you are trying toachieve with your marketing campaign. Includewhether the scope of the campaign is local, regional,national, or international.
"SWOT" ANALYSIS (strengths, weaknesses, opportunities,and threats). This will include information aboutdirectly competitive and indirectly competitivebusinesses in your industry.
TARGET MARKET: Write a clear definition of your target market, marketsegments, and major market trends and influences.
MARKET RESEARCH: This will tell why your product isneeded in the marketplace and what specific ways yourproduct will fill that need. This will include uniqueselling points, competitive advantage, and productbenefits to consumers.
MARKETING OBJECTIVES: Your marketing objectives andgoals will include measurable and deadlines by whichyou wish to achieve them.
MARKETING TACTICS: Which promotional vehicles you willuse to meet the marketing objectives.
DISTRIBUTION CHANNELS: What channels of distribution you will use tobring your product to the marketplace?
ACTION PLAN: Here you will includes budgets, costs, and outlinesresources will be required to implement the marketing tactics. This willinclude financial, monetary, personnel, vendors, systems, resources andpartners you need to realize your marketing plan.
TEST MARKETING: Make a list of any product research ortest marketing you need you will perform.
TRACKING RESULTS: Method of tracking results to determine if yourpromotional efforts are effective.
TRACKING YOUR PROMOTIONAL CAMPAIGNSAnother idea to keep in mind is testing and trackingyour publicity and promotional efforts. Measuring the effectiveness ofvarious ad campaigns will tell you which ads are working, which onesaren't, and will give you an opportunity to adjust your efforts toobtain optimal results.
21 Key items to track in your publicityand promotional efforts:
name of campaign
date the campaign was launched
cost of campaign
newsletters, sales letters, magazines, television, radio stations, or web sites where the advertising, stories, or press releases were sent and run
where news story was published
list of interviews generated
sales inquiries generated
new sales generated
return customers generated
new contacts added to your network
new business partners created
web traffic generated
new newsletter subscribers
overall revenue increase
increased product revenues
market share increase
improvement in search engine rankings
increase in sites linking to yours
number of search engines listed in
new speaking engagements obtained
number of articles published
prospects called
Additionally, surveys can provide real-time feedback onproduct titles, product offerings, price points, preferred method ofcontact, and other key items.
Survey Monkey (
www.surveymonkey.com
) is a free servicethat allows you to create surveys. What better way to findout what your audience needs them to ask them?
Article by Kristie Tamsevicius, America's Favorite Small Business Success Story.This article is an excerpt from Chapter 8 of the new book "
I LOVE MY LIFE: A Mom's Guide to Working from Home
" by Kristie Tamsevicius - (Wyatt MacKenzie Publishing March 2003Available at Amazon.com Join our community of Work at Home parents at
www.WebMomz.com
. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:44:19Z
Dream Job
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http://www.DrLaura.com/b/Dream-Job
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2010-05-07T08:44:16Z
2010-05-07T08:44:16Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Dream Job
By Sarah Costa
Upon graduating with a Bachelor of Science degree in Business Management from San Diego State University in 2000, I found myself with a dilemma. I wanted to be at home with my then 9-month old daughter as my husband and I agreed that staying at home with her would bring the most value to all of our lives; however, I also wanted to find a part time job to validate my degree I had recently completed and worked so hard to earn. Once Taylor turned a year old, I begin searching for a little part-time work from my home computer. Being only 23 at the time, I felt upon completing my graduation from college, that I seek some sort of position where I would be able to contribute to my family#146;s income at least in a small way and still be able to stay at home with our daughter. I stumbled upon a website called
www.moneymakingmommy.com
. Listed under available jobs was a remote concierge position for
VIPdesk.com
, Inc. I immediately was interested as I had just spent the previous few years before my daughter was born working as a concierge at a resort on Coronado Island, CA. At first, I admit I was somewhat hesitant about contacting the company as I had read and heard so much about non-legitimate work at home jobs. I decided to take a chance and just send in my resume.
I immediately received a call from a manager at
VIPdesk
whom interviewed me right over the phone. Talk about convenience! He detailed the job position and the required duties. I had a good feeling about this new opportunity as they offered to train me in Los Angeles, pay for all my expenses in getting there as well as during my stay and never once asked for money upfront. Needless to say I was very excited about this new adventure.
A few weeks later I was sent to LA for a few days of training. I had somewhat of a dilemma as to what to do with my daughter, as I was a stay-at-home mom with her being my first priority. They offered to give me a separate room and allow my daughter to come as well as my mother to act as my babysitter during the training. WOW!!! I thought that was the nicest gesture and very accommodating. After meeting my co-workers and completing the hands-on computer training at a computer training facility in Los Angeles, I had such a great feeling about this company and this new opportunity given to me. Basically my job tasks would include assisting clients via phone and email. Clients would send in requests for things such as travel information to restaurant reservations to flower orders to tourist information for cities ranging all over the United States via phone or email where I would be on the other end sending them recommendations. I began working a few weeks later and instantly fell in love with my job.
Everything we did was over the computer from assisting clients, to checking our schedules, asking for time off, talking with other co-workers via instant messenger and researching requests. At that time, little phone interaction was even needed, as the Internet was an endless sea of information to sift through.
Needless to say, I very much enjoy my job and feel blessed to have had the opportunity to work at such a rewarding position. My company truly values the family unit and the need for positions available for people whom believe in the importance of raising a family as well as seeking a career. I have been with the company now for almost 3 years and have experienced a lot of changes. I would have to say my company really values promoting from within and asking advice from all of its employees when change is needed.
My company is based in Alexandria, VA so I had the opportunity to begin my shifts on Eastern Standard Time. I work 4 days a week from 5:00am-10:00am PST from my home computer in San Diego, CA. I now have an 8-month old son as well and have been able to adjust perfectly having two kids#146; home with me while completing my job tasks. This past year I was promoted to Senior Concierge. I feel that I make great money, have the flexibility of working part-time from my home computer while staying at home with my kids, as well as provide a necessary service to our clients. In today#146;s fast paced economy, people don#146;t have enough time in the day to hold down a full time job and make that needed restaurant reservation, purchase those flowers for a loved one, plan a family vacation, research prices and information on household service providers as well as a variety of other tasks that bombard a person on a daily basis. Our service provides that much needed relief for the everyday busy person.
Working for VIPdesk has provided me with a sense of accomplishment to be able to juggle both a family and a career as well as contribute to my family#146;s income without any added stress. I feel my journey thus far has been exciting, rich in information and very rewarding. A large part of my co-workers chose to work from home without having to juggle a family or children as well but feel the importance of being able to telecommute in today#146;s hectic economy. I wish others would be so fortunate to be given the opportunity to work for such an appreciated company offering a valuable service to all of its clients.
For more information about employment opportunities contact us at
www.vipdesk.com
. Headquarters: VIPdesk.com, Inc., 324 North Fairfax Street, Alexandria, VA 22314, Telephone: 703-299-4422, Fax: 703-299-9767. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:44:16Z
Parents: Are Your Teens Needing Help Deciding On A Career? Don't Miss This April 16th TV Show!
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2010-05-07T08:44:15Z
2010-05-07T08:44:15Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Television's Kurt The Cyberguy Picks
MYCOOLCAREER.com
,
Press Release:
This Wednesday, April 16, Kurt The Cyberguy's television news segment will feature
MYCOOLCAREER.com
, a new career exploration site for teens 20s! In late 2002, the site enlarged its scope, overhauled its look to "awesome", and just finished archiving it's 75+ web radio career shows for streaming 24x7 one week ago. And, it caught the eye of Kurt The Cyberguy.
The 90-second segment will highlight high school senior, Erin Loveridge of San Pedro, California, talking about how
MYCOOLCAREER.com
, has helped her. The segment will air on Tribune Company television stations in Los Angeles (KTLA 5), New York City (WPIX), Chicago (WGN), Denver (KWGN), and Indianapolis in the morning and nightly news. It may also air on other Tribune television stations around the country as well.
Jill Sanborne, site creator says, "I'm hoping we're helping lots of teenagers! Erin's concerns are typical of many high school students who want to pursue a career that they will love." Sanborne expands, "Erin needs to choose a college that fits her career dreams, she wants to figure out how to narrow the variety of dreams swirling around in her intelligent head, decide on which dreams to focus, get financial aid, and on and on."
Sanborne is often heard on radio shows around the country talking about teens and their desperate search for more and better career information, why television is good, how today's workplace has dramatically changed, but the way we prepare our teens for the workplace hasn't, and how parents need to take on a new role: #1 Career Guidance Leader.
This week's web radio interview is with Rebecca Morse, Art Curator at the Museum of Contemporary Art in Los Angeles, California. This career was requested by a teen in New York who can't decide between being an art curator or a graphic designer.
Sanborne says, "I get these kinds of questions all the time!
MYCOOLCAREER.com
, is designed to help these teens get to know themselves better and shows them how to explore their career ideas so that they can make the best decisions possible by the time they graduate from high school, and provides them with tools for a lifetime."
MYCOOLCAREER.com
,, popular career exploration website for teens and 20's, features The 3 Steps To Your Cool Career and the info-packed 30-minute career interviews. Sanborne researches teens' needs and provides solutions to the challenges they face in preparing for rewarding careers, is a regular guest on talk shows, and speaks to teens and parent audiences about how teens can prepare for an awesome future. The site is recommended by
CareerProNews.com
, endorsed by Barbara Sher and the Los Angeles Unified School District Counseling Services K-12.
Staff
2010-05-07T08:44:15Z
Work Less and Earn More
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2010-05-07T08:44:14Z
2010-05-07T08:44:14Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Work Less and Earn More
by Joan Sotkin
Mary B. is a talented graphic artist. For years, she worked for a large corporation where her work was appreciated. Yet she yearned to be in business for herself. In September, 1995, she took the plunge and opened an independent graphic arts studio.
Unlike many new entrepreneurs, Mary had a large enough bank account to survive for six months with a minimum amount of income. She also had many contacts from the corporate world that she could use to establish her customer base. Mary was in great shape to start her own business.
Mary knew she was in a good position for success. She was also very conscientious and wanted to make sure that she did everything possible to make her business work. She put in long hours on the phone, going to networking meetings and planning her marketing. She wrote articles for local publications, volunteered her time when she had something to offer, and even appeared as a guest on a local talk show that had a business focus. When she did work for a client, Mary often worked to exhaustion to get the job done as quickly as possible.
Mary began to realize that something was out of balance. Her whole life was wrapped around her business, and, although she had created a positive cash flow, she was no where near her earning potential. After a year in business, she was exhausted and constantly worried about where her next client was coming from.
What Mary needed was to learn to let go and allow her life to happen -- rather than pushing to make it happen. She also needed to see her work as something she did during the day and not what defined her as a person.
Although it was scary at first, Mary learned to set boundaries. She established specific hours that she would work. During the week, she limited herself to eight or nine work-related hours per day. Weekends were for her, not for the business, unless she chose to take a day off during the week. She set aside days that were specifically for her spiritual growth. During these days, business of any sort was entirely off limits.During the hours designated for work, Mary often took people breaks: having lunch with a friend, meeting with another graphic artist, talking to a far-away friend. She learned to have short breaks within her workday when she would focus on something other than her work.
Mary also learned to spend 10 to 15 minutes each morning and 20 to 30 minutes every night, sitting quietly and letting her mind slow down. After a few months, she began doing specific meditation techniques. Because Mary had more time for herself, she started exercising regularly and found her energy levels increased rapidly.
The big change for Mary was learning to let go in order for her business to take shape by itself. If she really wanted to go to networking meetings to be with other people she did. But she didn't push as hard to get new clients. Whenever she felt the fear of not earning enough coming up, she learned to take deep breaths and not take any overt action.
Mary was amazed at the results of her new approach to life. It didn't take long for enjoyable projects to come her way. New clients started coming as a result of referrals rather than her marketing efforts. Within a few months, she was able to vendor out some of the work that came her way so that she could earn more without putting in extra hours. Mary also noticed that her business was moving in a new direction -- one she could not have foreseen if she kept plugging away and doing everything she thought she had to do before.
Mary learned to take care of herself and her life became a reflection of that care. The less she pushed to make her business happen, the easier it was for it to support her. Mary's new-found trust in herself and how life works paid off for her.
Mary never stopped paying attention to her business. She also had clear income goals and a picture in her mind of what she wanted her life to look like. What she stopped doing was pushing to create what she wanted in the way she thought she had to do it. She let herself believe that she could have what she wanted and let her life take shape.
When we aim for a goal, if we don't take pauses in order for the energy of our life to reshape itself, everything we do comes from a previously known point of view. In order for something new to take form, we have to give it time for the energies to gather -- and shape themselves. What we have to do is not do anything and give our creation room to breathe. It may look like goofing off, but there is a lot going on deep within our creative being.
Try taking longer pauses in your life. If you find the concept frightening, ask yourself what you are afraid of. Don't let the actions you take come from fear. Let them come from knowing that the action is the right one to take. That knowing can only come from a silent space that you create by not doing.
Joan Sotkin is the creator of
ProsperityPlace.com
, author of "Build Your Money Muscles:9 Simple Exercises for Creating Wealth Prosperity" and "Prosperity Is an Inside Job" and publisher of Prosperity Tips, a free monthly ezine. Visit
ProsperityPlace.com
.Copyright copy;2003 by Joan Sotkin. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:44:14Z
Business on a Shoestring
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2010-05-07T08:44:12Z
2010-05-07T08:44:12Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Business on a Shoestring
By Kelley Watt
I run my own business and what I love about it is that it didn#146;t cost any money to start, I set my own schedule around my family and it pays well. This business allows you to make money by charging whatever fee you feel is appropriate for your time and research. And, it is both fulfilling andfun..
I do textbook reviews and speak to community groups and organizations about the content of the books their children are using. You#146;d be surprised at thenumber of errors and important facts missing. The textbooks I am referring to are the one's provided by your public schools to teach your children.
I began this business quite by accident in the winter of 1991. I went to pick up my elementary school aged son and arrived a little early. I noticedin the hallway a stack of books and thought it was a book fair. So I began looking through them and then noticed that they were all math books. Tomake a long story short, the principal of the school approached me and told me that I was not allowed to look at the books (which were positioned outside the school cafeteria in the hallway). I asked why, what were they and he replied "They are books up for adoption by the school district. Mathbooks.#148;
He left, and my curiosity got the best of me so I started reading them again. He came over and told me he would call the police if I did not stop looking at the books. Being threatened for arrest for looking at a bookthat my son would be using the following year really got my attention. I knew something was wrong with this picture so to speak. That incident was the beginning of my journey. I started going to the school district and asking to look at textbooks. I was particularly interested in seeing what reading books were being used. The school administrative services office gave me a stack of books to read which were currently being read by first graders (I figured I#146;d start off with first grade and go up from there) and was shockedat what I found. The constant theme was to reward the characters in the stories for disobeying authority, whether it be; parent, grandparent, teacher, etc. After reading the first grade texts (the children would go through 5 books in the course of the year) I was fascinated with what I was discovering and wanted to tell other parents. It didn't take long for me to become known as the local "expert" and was soon being called to speak aroundtown followed by national requests. It's been very rewarding because it alerted me to, if nothing else, the need to remove my children from public education and enroll them in a private school (one that did not receivestate or federal money). I have met people from around the country who have the same passion and interest as I do. Speaking fees range from $25.00 to $250 an hour, plus travel expenses, depending on the size of the crowd and who issponsoring my speaking engagement. Even if you do it as supplemental incomeit really adds up and since very few people in the US are doing textbook reviews you will definitely get speaking engagements. There was a group outof Longview, Texas called "The Gablers" who were the first group to do textbook reviews. You can send off for their reviews for a minimum fee and speak directly from that if that suits you better. For example, go to your school and ask for a geography book then write to the Gablers and see ifthey have done a review on that particular book, if they have, read it and speak out publicly.
Permission granted for use on DrLaura.com
Staff
2010-05-07T08:44:12Z
Writing Your Own Ticket
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2010-05-07T08:44:11Z
2010-05-07T08:44:11Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Writing Your Own Ticket
By Leanne Ely
There are plenty of women all over the country who would love to say, "I ama stay-at-home mom." Reality on the other hand, and the unpaid stack ofbills that greet the family each and every month, may not always give allwomen this opportunity. But that doesn't mean that's that--there are otherways to walk around that obstacle.
Working from home could be the answer you're looking for. Working from homecan mean just about anything--from selling vitamins from a catalogue, ordoing medical transcribing, or doing something a little more unusual like Idid.
Let me first say that my story is quite different and not the "norm". Andwhile you may look at what I do as being unattainable, the point is in thestory--not what I do. There is a good lesson to be learned no matter whatyour goals are.
All my adult life, I've been into food. I cooked in a restaurant, started myown catering company and taught cooking classes. In the fight to keep mylittle ones healthy, I became a nutritionist. Finally, I wrote a book twoyears ago called
Healthy Foods
that got picked up by a small publisher. Iworked like a dog to get that book to take off and it finally did. Dr. Lauraeven featured it as a Book of the Week.
Still, I wasn't bringing home the bacon as much as I wanted or needed to. SoI started teaching classes at the local junior college and sold my books tomy students in my classes and got paid for teaching, too. I wrote articlesfor various publications and got paid for my efforts. I wormed my way into afood writing job for a newspaper and got my own column. I kept writing, keptgetting paid--a little here, a little there, it all added up and helped. Aday didn't go by where I wasn't looking for other avenues to publish mywork.
One of my projects was (and still is) a free ezine called Healthy-Foods:
join-healthy-foods@ds.xc.org
. People write me regularly telling mehow much they love my recipes and tips. I also write for
FlyLady
giving FlyLady's ladies recipes and tips in my Foodfor Thought column. One day, Marla Cilley, the FlyLady asked me to give theladies on her list a menu for the week with a bunch of crockpot recipes. Ithought throwing a grocery list in there would make it even better and I wasright. It was a huge hit, but it was also a LOT of work. The ladies clamoredfor more. One day my husband said to me, "Why don't you just CHARGE for it?"That resonated in my brain, and
Menu-Mailer
wasborn.
The lesson here is one of perseverance. When you hang tough doing what it isyou love to do, using your God-given talents and abilities, and believing inyourself, miracles happen. For me, it's been an adventure and I've beenblessed to be able to write my own ticket. But the only reason that is so isbecause I worked very hard and pulled out the paper and the pen and wrote itmyself.
You can write your own ticket, too. Make an assessment--figure out what itis YOU want to do, what your natural abilities and gifts are and startbuilding goals from there. Then don't back down! Stay dedicated to yourcause and keep your eye on the prize. It's worth the fight!
Leanne Ely is the host of the radio show, Heart of a Woman. She is also theeditor of
Menu-Mailer
, the answer to that perplexing question, "What's forDinner?" and the author of the upcoming book,Menu-Mailer by the Book (Ballantine, 2003) as well as Healthy Foods(Champion Press, 2001) and The Frantic Family Cookbook (Champion Press,2002). Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:44:11Z
The Millionaire Pattern
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2010-05-07T08:44:10Z
2010-05-07T08:44:10Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The Millionaire Pattern
How many times will you spend money today? Maybe 4-5? How many times will you save money today?
Millionaires view expenditures differently than others do. They treat every dollar as a money seed. They know a dollar a day can grow into a million dollars. And they don#146;t just get a discount. They take the money saved and put into something that will create more income for them in the future.
Want to reduce your expenditures? Make a plan for what you will spend for at least the next 90 days. Then, every week and at the beginning of every month, review your actual expenditures against your plan. Make adjustments as needed.
On a daily basis, invest an extra minute#151;a Millionaire Minute, in each money transaction. Look at a couple of options. Don#146;t buy the first one, unless you just know in your gut, that#146;s the one. Ask for a discount, even if the store or seller isn#146;t offering one. All they can do is say no.
Your exercise today is to note each time you spend money. At the end of the day, write in your journal how much you saved from today#146;s transactions. Then, make a conscious decision, #147;What will I do with those savings?#148; If it#146;s useful to you, do this daily until you have established the Millionaire Pattern.
Copyright copy;2002 Millionaire Eagles. All rights reserved.Contact Robert G. Allen at
boballen@robertallen.com
or visit his website at
www.robertallen.com
for more information. Permission granted for this article for use on DrLaura.com.
Staff
2010-05-07T08:44:10Z
Do You Want To Work From Home?
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2010-05-07T08:44:08Z
2010-05-07T08:44:08Z
Staff
2010-05-07T08:44:08Z
What If You Could Duplicate Yourself?
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2010-05-07T08:44:08Z
2010-05-07T08:44:08Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>What If You Could Duplicate Yourself?
Debra Cohen
www.homeownersreferral.com
Imagine yourself as the owner of a thriving home based business. Your phone is ringing off the hook and there is a much greater demand for your product or service than you had anticipated. Soon, there are not enough hours in the day to complete all of the work and your business is taking valuable time away from your family (which was one of the reasons you decided to work from home in the first place!). It is a nice problem to have but what do you do?
Many home based business owners are faced with that exact problem. While it's thrilling to see your business succeed, it's sometimes impossible to keep up the pace when you're the only employee. Ultimately, the quality of your service or product may suffer not to mention the toll that a home based business can take on your family life.
The solution isn't to work harder; it's to 'duplicate yourself' so that other people can be trained to work like you. Convert your existing business into an easy to follow, step-by-step procedure manual. By systemizing the way that you work and documenting your business procedures, you can then market your business as a turnkey system for others to follow. And, with other satellite businesses like yours in place, you'll be able to refer work to them as opposed to trying to manage it all on your own.
Six years ago, I launched a contractor referral business and within six months, had more clients than I could handle. If I continued to try to satisfy the workload, the quality of my service would have suffered, not to mention, my family life. I realized that not only was there a universal demand for my business service but other entrepreneurs were interested in a referral business concept so I decided to document my system so that others could duplicate this type of service in their area.
If you think that there is a market for your business concept, the first step is to test the market. For instance, assuming that your business will appeal to other stay-at-home moms, conduct an informal market survey online and/or in local papers or magazines which are well read by other moms. You can run a short ad promoting your business opportunity and gauge the response. If there's an interest be sure to keep the names of those who contact you for future reference (of course!).
Once you're confident that there's a demand for your business model it's time to start systemizing your business and documenting each step in detail. Take note of your day-to-day procedures, billing, customer service policy, advertising and promotion, public relations campaign as well as any insurance and licensing issues pertaining to your business. You should even tape record conversations with customers and suppliers so that you can document them in easy to follow dialogues for others to use as a guide. Imagine your reader to be a first time business owner with no previous experience and it's your job to teach them everything about your business from how to set up a home office to how to complete a cash flow statement.
After documenting your procedures, select someone who isn't acquainted with your business to read through your manual. Your familiarity with your business may have caused you to overlook aspects of running it that need to be explained more clearly to a layperson. You can hire a business consultant to help you with the process or look into free business resources such as SCORE (Service Corps of Retired Executives) or a local SBDC (Small Business Development Center). That person can also help you determine how to creatively package and set a price for your business product based on earning potential not to mention the quality of your materials.
Finally, when your business manual is edited, bound and ready for sale, it's time to start promoting it to your target audience. Begin with the list of names you put together in step one and then expand to other media which are well read by aspiring entrepreneurs looking for a home based business.
Duplicating yourself, and ultimately your business, will not only allow you to divest yourself of the work you're unable to handle but it will also help expand the profit center of your business. Best of all, it will enable you to share your home business success with other aspiring entrepreneurs.
Debra Cohen is President of Home Remedies of NY, Inc.--a Homeowner Referral Network (HRN) which has served more than 500 residents of Nassau County, New York. Ms. Cohen is also author of a business manual entitled
The Complete Guide To Owning And Operating A Successful Homeowner Referral Network
, which is sold individually or as part of an HRN Business Package. To date, Ms. Cohen has assisted more than 225 other entrepreneurs launch successful HRN's all over the globe. For more information about starting an HRN in your area, visit the HRN website at
www.homeownersreferral.com
or contact Ms. Cohen directly at (516) 374-8504. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:44:08Z
Home Office Management for Parents: 7 Tips for Managing Your Time
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2010-05-07T08:44:05Z
2010-05-07T08:44:05Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Home Office Management for Parents: 7 Tips for Managing Your Time
copyright 2002, Debbie Williams
As a home business owner you can budget your finances, create whiz-bang proposals, and effectively maintain a client list. But when it comes to working with unauthorized personnel, those under twenty and less than five feet tall, your mind draws a blank. The thought of your three-year-old picking up the phone and sharing her philosophy of life gives you the shudders, and you're not quite sure how to balance family time with productive work time.
Use these 7 tips for managing your time, and effectively limit interruptions from your own residential staff.
Set office hours and stick to them. Post this list on your frige or bulletin board where your family can see it, and remind yourself to close up shop at the appointed hour. Being accessible 24/7 is not the road to success if you are spreading yourself so thin that your family barely recognizes you and your phone rings around the clock. Focus on work during office hours, and then transition into parent and spouse mode at the end of your day.
Performing a simple ritual such as closing your office door, straightening your desk, or making tomorrow's to do list will help you move from worker to parent in a simple but effective way, even if your commute home is just down the stairs or across the kitchen.
Close the door and walk away, or put up a decorative folding screen to block the view of works in progress. If you walk by your home office or desk piled high with reports, it's hard to focus on what your family needs from you. Although many of us can and do multi-task quite well, it's fairly impossible to concentrate on everything equally well -- something you hear and respond to will suffer in the process.
Mentally hang a CLOSED sign on your office door, and resist the urge to reopen for "just one more thing". Your family will thank you for it!
Establish boundaries: create a "do not touch" pile or "do not enter" zone in your work area. Determine how much input you need from the members of your family when it comes to work, and let them know what you expect from them. If you allow your four-year-old daughter to color at your desk so you can keep her nearby, then don't be surprised when she colors your sales report or presentation handouts. Consider making a niche or small desk for her to use as her own office, complete with office supplies. Be sure to instruct her in the use of your office, such as what is usable and what is not allowed so that there are no future misunderstandings.
If you do not want anyone in your work area under any circumstances, then tell your family your wishes up front. Don't wait until there is a disaster to notify them of the rules. One of my clients made her rules crystal clear by hanging a construction paper sign on her door: Stop Sign meant do not come in under any circumstances (work in progress). A yellow Smiley face meant come on in and keep me company- let's work together.
Create phone rules such as: no talking allowed, use an inside voice, or whisper when mom or dad is on the phone, screen calls during melt downs or family time, do not allow children or unauthorized persons to answer your business line or only with instruction.
Early in my business as a professional organizer, I instructed my husband and my young son to whisper while I was on the phone. Not only does this prevent unwanted background noises during a business call, but it also teaches them to respect your privacy when talking with a client. And since I work from home and often choose to answer my phone near them, I am respecting their need to carry on a conversation.
Screening your phone calls during temper tantrums (and we're talking about your kids here, not you!) helps you focus on home matters when they need to be a top priority-- don't worry about the caller; if it's important, he'll call back or leave a message. Use caller i.d. to your advantage-- I have a unit on every phone in my house.
Unless you have older children or phone savvy spouses, I recommend that you don't allow anyone else to answer your business line. Even if your family member answers professionally, you may not be ready to speak with a potential client or answer an important question at the moment, and don't need to put them on the spot as a gatekeeper. When you're elbow deep in diaper changes or mediating a fight among siblings, the last thing you need is to switch gears and speak to someone wanting to sponsor your sales conference! Choose wisely.
Assemble a quiet Activity Box during special times such as phone calls, writing time, or during times when you need to really focus on your work. If your children are infants are toddlers, stash toys in a milk crate or wicker basket and pull these out before returning phone calls or sitting down to balance your checkbook. Preschoolers love looking at books or creating masterpieces with markers, and these should be used only during special times. Older children might enjoy watching a video or working with modeling clay, and that usually provides you with 15 minutes or so of uninterrupted time (if you're lucky).
If all else fails, just tell your little Junior Partner that Daddy needs a few minutes to finish working on a very important project, then set the kitchen timer and place it in view but well out of reach. When the timer rings, the coast is clear and it's time for some family time with Dad.
Use Kid Multiplication when all else fails: give them 10 and get back 20. It's amazing how perceptive our sons and daughters can be when it comes to sensing stress. Quite often, children are like barometers, and taking a break when they suggest it is just what the stress doctor ordered. If none of your tricks work, then it's time to just set the work aside, take a short break, and read a story or work a puzzle. Tell a joke, have a snack, or plan a slumber party. Your child will let you know when he's had enough, and before long will be back at building towers and fighting aliens. After a short kid-break, you'll be rested and ready to get back to work for a few more minutes. I've seen this magically happen time and time again, both with the clients I work with and in my own home. I guess it's fair to say that if you just can't beat them, join them.
Work WITH not AGAINST your kids' schedule by utilizing naptimes or when they are in school. This is probably the best advice I can give to anyone working from home, especially if you are just launching your home business. Trying to force your family's schedule to fit into your mold creates tension and upheaval. If your children are young, work when they are napping or after they go to sleep at night. As they grow older, you can do a little work when they are having a snack at the table or in their highchair. Then when the kids arrive home from school or your spouse walks in from a busy day at the office, it's time to take a break and become the best mom or dad you can possibly be.
In Summary
When the kids are awake needing your attention and affection, it's time to evaluate your priorities and determine how much you will be available to cater to their needs and desires. This is something that every parent has to figure out for himself-- there is no magic formula. But I do know that eventually you will figure out the right balance for you and your family. You can choose the easy route, by keeping the lines of communication open and reassessing the rules on a regular basis, or take the bumpy road and work around the clock making your family resent you and your business. But the journey can be rewarding and filled with wonderful adventures- happy motoring to you!Debbie Williams is an author, speaker and organizing strategist who offers toolsand training to help you put your house in order. Learn more at
www.organizedtimes.com
. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:44:05Z
Kids Entrepreneurs Running the Family Homeschooling Biz
Staff
http://www.DrLaura.com/b/Kids-Entrepreneurs-Running-the-Family-Homeschooling-Biz
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2010-05-07T08:44:03Z
2010-05-07T08:44:03Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Kids Entrepreneurs Running the Family Homeschooling Biz
By Rebekah Callihan, 20 years old
Looking back over the past year and nine months, the events I#146;ve had the opportunity to be involved in are starting to fit like pieces of a puzzle in a way I#146;ve never experienced before.
An entrepreneur was never something I saw myself becoming. Sure, I guess selling rabbits with a big sign on the side of the road outside of our house would be considered a (very) small business. Beyond this, however, starting and building a business was not on the top of my #147;to do#148; list.
My older brother, Jeremiah, younger sister, Katie, and I have been involved since the beginning in the production of the book written by our parents (
The Guidance Manual for the Christian Homeschool: A Parent#146;s Guide to Preparing Home School Students for College or Career
, Career Press, 2000-2002). As the publisher#146;s deadline got closer, Mom and Dad didn#146;t feel they#146;d ever be able to finish the book with all the daily chores of life they normally took on. After a brief family meeting, Jeremiah, Katie and I each assigned ourselves to take over the cooking, cleaning the house, and home schooling our two younger brothers, Josiah and Wesley. Even though our names aren#146;t on the cover of the published book, Mom often reminds us of the contribution we gave to make it come together.
Early in the spring of 2001, my parents were getting ready to make their rounds as second-year authors and speakers to the home schooling community. It was time to think over the different products they would provide for the homeschool market. They always prefer to make available as many of the different curricula and reference materials they themselves have come to rely on from their experience as home schooling parents. However, this year they realized that they were just not in a place to fund the distribution of all their favorite resources.
While discussing the different options for the upcoming events we#145;d be attending, it came up that Jeremiah, Katie, and I, through working at our local Christian bookstore, probably had more extra money to invest into the business than Mom and Dad did at the moment. As the discussion deepened and thoughts churned, the idea surfaced that we could invest in the family business ourselves.
Mom and Dad offered a proposal to us for buying the book distribution portion of the business. We would take over all the sales and bills for the rest of the homeschool conventions that we#146;d be traveling to over the Spring/Summer season. Once we had a break in all the travel, we would evaluate and see how to continue. Since Mom and Dad were already booked to be speakers at each of the conventions we#146;d be attending, we had free marketing right off the bat. It was at this point that my eyes began to open to see the chain of events that came together to provide for this opportunity.
Jeremiah, at this time, was finishing up his freshman year at college as a business major. For him, building a business would be an excellent experience, and for us, having him with some business knowledge would offer insight in different areas of the pursuit. Katie and I were working full time at our local Christian bookstore (Jeremiah was also working weekends there). And though it was very fulfilling to be serving the Christian community through my job, it wasn#146;t always as enjoyable as I had expected. Now, however, the numerous hours I had spent at Sacred Melody Bookstore began to have a clear purpose in my life. Working full time at the store was the provision for the capital that opened the door to this opportunity. But not only that, the experience and knowledge in areas of product information, marketing schemes, customer service and accounting responsibilities (that a business in book sales cannot survive without), was provided to each of us through this period.
I would have the chance to use what I#146;d learned recently at the store, be traveling with my family (giving me the chance to build my relationships with them), and offer resources and insight to home schoolers in many different areas across North America.
Now, I must confess, this new pursuit was definitely not without distraction and discouragement. Trials came up for me personally with work schedules, other commitments, fear of failure, etc. I know Katie and Jeremiah also had similar doubts of ever succeeding, but I believe by pressing through these roadblocks we all defined our faith and developed our determination. Though discouragement arose, I never failed to see that this was a true vision that would lead to prosperity.
Our convention season has quieted down, and we are at the moment on a break from the road. The options for continuing keep pouring in however. The business is growing, and provides for my family and me in many ways. Yes, I am talking monetarily, but I consider myself to have gained an abundance of riches from the blessing we#146;ve been able to give to and receive from others.
###
Bio: Rebekah Callihan is the daughter of David and Laurie Callihan, authors of
The Guidance Manual for the Christian Homeschool: A Parent#146;s Guide to Preparing Home School Students for College or Career
, and the
Christian Homeschool Student Planner and Parent#146;s Guide
. She is one of five siblings, Katie, 18; Jeremiah, 21; Josiah, 17; and Wesley, 15. Rebekah graduated from home school in 2000, and all five kids were homeschooled from birth. They, however, did attend a private Christian school for a couple of years where Laurie served as one of their teachers. Rebekah is now a junior nursing student at Roberts Wesleyan College in Rochester, NY. Though not official, her love for children has led her to focus on the area of pediatric nursing. Rebekah hopes to one day be able to serve in the mission field as a nurse. The Callihan#146;s homeschooling resources are found at
www.davidandlaurie.com
; the Callihan children#146;s business arm of David and Laurie#146;s homeschooling business is
Home Education Learning Products and Services (H.E.L.P.S.)
, a name that the children themselves thought up.
When the opportunity arose for Jeremiah, Rebekah, and me to buy my parents business, I was, at first, purely skeptical. Was I really prepared to sustain another project, another responsibility, another risk at this point in my life? In the days following, I met with my siblings, and we estimated the ramifications. All things considered, the positives exceeded the negatives. Even if we lost all material assets the very idea of being of service to our parents was incentive to press forward. As we proceeded, my doubts were proven deficient. Through this adventure I was able to spend simple valuable moments conversing #147;business#148; matters with my siblings and working out "glitches" with my parents.
-- By Katie Callihan, 18 years old
My parents had to have faith that homeschooling was how God wanted them to educate their children, and that He would help them in the process. They had to have courage to go against the norm of society by not sending their children to the normal institutional schools. They also had to have a vision. We have been struggling to start our family business for the last seven years. We would have quit six years ago had it not been for that vision and the faith and courage that go with it. We are now being given an opportunity to take ownership of the sacrifices our parents have made for us. We children have been given the awesome opportunity to exercise that same faith, courage, and vision as we work with the homeschooling community.
-- By Jeremiah Callihan, 21 years old
Staff
2010-05-07T08:44:03Z
Freelance Writing 101
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2010-05-07T08:44:00Z
2010-05-07T08:44:00Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Freelance Writing 101
by Leslie Godwin, MFCC
www.LeslieGodwin.com
Would you love to earn a living as a writer, but don't know how to take the first steps toward getting paid to write? Do you see yourself typing away at the kitchen table after your kids are off to school writing something that engages your imagination and lets you touch others with your stories?
Many of us who enjoy writing have at one time or another fantasized aboutgetting published. But most people who write for the love of it never getpaid for their efforts. And in many cases, it's not due to a lack oftalent.
There are two main reasons that many good writers don't get paid to write.The first is they don't understand the business side of writing. The other is they get discouraged by the first few rejection letters, and give up before they sell their first article or book.
So how can an amateur writer overcome these obstacles and make the leap tobeing a published writer?
The Business of Writing
It's a Catch-22, explains Susan Carrier, a freelance writer for more than a decade. You can't get published until you get published. So anything you can do to get published is a good place to get started. One place to start might be pitching one or more topics of local interest to the editor of your community newspaper.
Susan didn't have any writing credits when she decided to quit the job she'd held as a marketing manager for Pacific Bell for a dozen years to become a full-time mom. When her daughter was four years-old, she wanted to work part-time from home and thought that freelance writing might be the perfect solution, since it would provide a lot of flexibility, didn't require a capital investment, and she thought it would be more personally satisfying than some of the other business ideas she'd considered. Plus, Susan didn't have to replace an existing income right away, since she had been a full-time mom and wife for the last four years."I had sent out dozens of query letters the first year I decided to become a freelance writer, and the only response I got were rejections. I thought, what if I write a whole essay? That way the editor can see more of my work. So I wrote 'Grandmother's Garden,' a story about how I recreated my grandmother's garden in my backyard. I sent it to the Los Angeles Times with a picture of my daughter in the garden and the editor loved it."
Now that she was published, Susan a had a copy of the article, or clip, to include with future query letters. Clips prove that an editor thought her writing was good enough to publish and this makes her less of a risk to other editors considering her work.
Write What You Know for a Publication You Know
Your niche can be an area of professional experience. If you are abookkeeper, you might write a series of money management articles for yourlocal newspaper. If you don't have a professional background, considerwriting about an experience that others would find interesting or helpful.
A woman I met in a writing class was working on a book about her experience as a young German girl living through WWII. She described bombing raids that caused her family to evacuate their Berlin apartment, as well as her confusion caused by praying during the war as a child for the Germans to win, only to find out later about Nazi atrocities which made her thankful her country was defeated. She had a compelling story and told it in a suspenseful way.
What experiences have you had that would touch others? What publicationsfit your idea for an article? Or would you like to write a book about your area of expertise?
Susan decided early on that she wanted to write for
Sunset
magazine. She had read
Sunset
for years, and was very familiar with the tone of the magazine and the kind of articles they published. If you want to increase your chances of getting published, take notes as you brainstorm so you'll have more than one idea to follow up with if you get a rejection at first.
Persistence Pays Off
"I got a form rejection letter the first time I sent them a query. The next one resulted in a more personalized rejection letter. By the third or fourth pitch, I was getting hand-written notes saying we're not doing this now, but keep trying. I didn't wait long after getting a rejection letter before I sent my next pitch."
Most novice writers think that better writers are going to beat them out for the next writing job. Actually, the writer with the smallest ego and the most persistence is most likely to win that job. Yes, you have to have writing skills. It's also important to hone your skills by taking classes, getting lots of feedback, and simply writing. But the good writer who keeps sending out query letters will get more jobs than the great writer who doesn't.
Karen E. Klein, freelance writer for the
Los Angeles Times
,businessweek.com, and both
Newsday
and newsday.com, started freelancewriting 15 years ago. She typed up articles on her DOS-based computerbefore modems and cell phones existed so she could stay home with her newbaby. Karen's advice to new writers is to... be persistent. Keeppitching. Rejections don't mean your writing stinks. It's critical not to take rejections personally. You might have simply pitched something that publication ran three months ago. Karen recommends reading a publication for six months to really get to know it.
Karen advises, "If you're unknown, go to the front of the magazine andnotice the brief blurbs. They're about 150 to 300 words. Come up with anidea for one of those short pieces. In some magazines, there are pieceslike that in the back, too." A magazine I've been studying,
Family Circle
, has short pieces in the front called Circle This. And the last page is an essay called Full Circle. I can see they use freelancers because each article includes a brief bio of the author in italics.
RESOURCES FOR FREELANCE WRITERS
San Marino Public Library
www.Sanmarinopl.org
offers free access to the archives of the Los Angeles Times, San Francisco Chronicle, USA Today and the Christian Science Monitor.
Writers Market
Lists contacts for many publications, as well as informationabout whether they use freelance writers, if new writers should submitqueries, and other helpful tips.
IWOSC
Provides service and support for professional, self-employed writersand those wishing to become freelance writers. The Web site has anexcellent reference list of resources for writers:
www.iwosc.org
Writers Guild of America
A national organization for writers:
www.wga.org
Writers Weekly
www.writersweekly.com
Karen Klein's website
www.kareneklein.com
Take the First Step
You may need to keep your day job a while, or if you're a stay-at-home mom, you may need to be frugal a little longer. In either case, commit tospending a certain amount of time, like an hour three times a week, writing drafts and doing research. Join, or start, a writer's group. Take a writing class. Then, focus on one or two publications, get to know themwell, and keep generating ideas that you consistently form into queryletters. You'll eventually be in the right place at the right time. Andonce you have one clip, you'll have credibility that will help you in yournext pitch.
Leslie Godwin, MFCC, is a Career Life-Transition Coach specializing inhelping people put their families, faith, and principles first when makingcareer and life choices. Leslie is the author of the new book,
"From Burned Out to Fired Up: A Woman's Guide to Rekindling the Passion and Meaning in Work and Life"
published by Health Communications, Inc.. For more information, go to
www.LeslieGodwin.com
. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:44:00Z
22 Ways to Earn an Extra Million
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2010-05-07T08:43:59Z
2010-05-07T08:43:59Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>22 Ways to Earn an Extra Million
By Robert G. Allen Mark Victor Hansen
S Invest $1 a day at 5% for 100 years.
T Invest $1 a day at 10% for 56 years.
O Invest 1$ a day at 15% for 40 years.
C Invest $1 a day at 20% for 32 years.
K Invest $10 a day (about $300 per month) at 20% for 20 years.
S Invest about $850 a month at 20% for 10 years.
P Flip one house a year for 35K Profit and invest the money at 20% for 10 years.
R Buy and rent out ONE house a year for 15 years. (Assuming 15-year mtg. 5% Apprec.)
O Buy and rent out TEN houses in one year and hold for ten years. (15-year mtg. 5% app.)
P Buy one million-dollar apartment building a year for 7 to ten years.
E Flip one million-dollar property a year for $200,000 profit for 5 years in a row.
R Buy 5 million-dollar apartment buildings and hold for 2-3 years.
T Buy one 5 million-dollar building and hold for 2-3 years.
Y Buy one very large building and flip it for a million dollars in one year.
B Market a widget and net $100,000 a year for ten years.
U Market a widget and net $200,000 a year for 5 years.
S Market a widget and net $500,000 a year for 2 years.
I Market one million widgets for $1 profit.
N Market 100,000 widgets for a 10$ profit.
E Market 10,000 widgets for $100 profit.
S Market 1,000 widgets for $1,000 profit.
S Market 100 widgets for $10,000 profit.
copy; 2001 Mark Victor Hansen and Robert G. Allen.
Contact Robert G. Allen at
boballen@robertallen.com
or visit his website at
www.robertallen.com
. Permission granted for this excerpt from the forthcoming blockbuster, The One Minute Millionaire with Mark Victor Hansen, for use on DrLaura.com.
Staff
2010-05-07T08:43:59Z
World Class Selling: How to Sell with all the Class In the World.
Staff
http://www.DrLaura.com/b/World-Class-Selling:-How-to-Sell-with-all-the-Class-In-the-World.
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2010-05-07T08:43:58Z
2010-05-07T08:43:58Z
Staff
2010-05-07T08:43:58Z
The Five Characteristics of the Ideal Multiple Stream of Income
Staff
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2010-05-07T08:43:58Z
2010-05-07T08:43:58Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The Five Characteristics of the Ideal Multiple Stream of Income
by Robert G. Allen Mark Victor Hansen
Ideal Multiple Sources of Income have these five characteristics:
1. Zero cash
Zero cash is required. Not necessarily no cash, just not your cash. As you read in Robert Allen's classic book, 'Nothing Down' there are dozens of techniques for buying real estate with little or no money down. Business masters in all ages have been masters of the "creative non-use of cash." The great billionaire, Andrew Carnegie, bought many of his major businesses with nothing down. Even America was a nothing down deal. Columbus borrowed the money he needed from the King and Queen of Spain. You can learn how to do the same.
2. Zero risk
If you don't have a lot of your own money in the deal, you dramatically lower your risk. The more successful you become the more risk adverse you will become. You will cover your assets. You will learn to use corporations, LLC's and other legal entities to lower your liability. The goal is to be risk free.
3. Zero time
Zero time does not mean that you invest 'no time', it merely means that once your project is up and running, it should operate on automatic pilot. Like writing a book; your goal is to write it, market it and get it to automatic pilot as quickly as possible. Then you can concentrate on the next project or task. You focus your thinking and creative energy to design a self-perpetuating system. The ultimate goal is ongoing massive, passive cash-flow with little or no investment of your time.
4. Zero management
Management is an endless 'to-do' list that absorbs your time. The objective is to outsource and delegate your work effort. Operate from your highest and best thinking. Simulate yourself as the President of the United States complete with all the resources, talent, connections and money that you could possibly use to realize your desires.
5. Zero energy
Life is energy. Your invested energy is your life. You want the greatest possible returns per unit of energy invested. When your life is over will you feel rewarded or regretful? Energy well invested will give you a great return on your investment.
You want high profits for your high thinking and high service. It's available. Rare is the person who thinks through these critical concepts with regard to his or her own future and fortune. Every business giant has done this 'rare' thinking and that's why we recommend the reading of business biographies and autobiographies.
Learn to "zero out" your life.
Contact Robert G. Allen at
boballen@robertallen
.com or visit his website at
www.robertallen.com
. Permission granted for this excerpt from the forthcoming blockbuster, One Minute Millionaire with Mark Victor Hansen, for use on DrLaura.com.
Staff
2010-05-07T08:43:58Z
Could You Be a Virtual Assistant?
Staff
http://www.DrLaura.com/b/Could-You-Be-a-Virtual-Assistant
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2010-05-07T08:43:56Z
2010-05-07T08:43:56Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Could You Be a Virtual Assistant?
By Glory Borgeson
Do people think of you as #147;Ms. Organization?#148;
Do you have excellent grammar and spelling skills?
Are you a good communicator?
Are you technically-savvy when it comes to using the Internet, e-mail, programs such as Word, Excel, and Outlook?
If so, you may be the right person to be a Virtual Assistant.
Virtual Assistants (VAs) work from their home office for their clients. They may meet with their clients briefly, such as when a client drops off information at their home office, or they may never meet some clients in person at all.
VAs do a variety of administrative tasks for clients. Because of this, a person who wants to be a VA must be organized. They need to be able to juggle several clients and the particular work their clients give them to do, keep track of the time worked for each client, and account for billings.
Since a VA does a lot of writing and phone work for her clients, she needs to be highly skilled in grammar, spelling, and communication. There are tools to help with this, such as grammar reference books and spell-check in word processing programs. Also, being well-read is helpful. Still, it is best to already be proficient in these skills before deciding to be a VA.
Having #147;technical know-how#148; is a big plus when deciding to become a VA. If you want to increase your skills in this area, consider taking a course (perhaps at an intermediate or advanced level) that will take you through Windows Explorer, My Computer, and Control Panel to get very familiar with how to use these areas to best organize your work and keep your PC in top working condition. If you have been out the workplace for a while and/or have not used certain types of software for months, consider enrolling in classes to get your skills current (or even to an advanced level). Examples of classes you might want to take are MS Word, Excel, PowerPoint, and Outlook. Also, some advanced VAs do a little work on client#146;s websites and know some html code, using software such as Dreamweaver.
Your PC also needs to be up-to-date before venturing into this field. Check the versions of the software you are running. You may need to upgrade the software to a current version.
Does your PC have enough free space on the hard drive? (Note: To check how much space is used and how much is free, open Windows Explorer. On the left panel, click the #147;C#148; drive once, so that it is highlighted. At the menu bar, click #147;File#148;; click #147;Properties#148;. In the Properties box on the General tab, you will see information about #147;Used space#148; and #147;Free space#148;, in bytes, gigabytes, and in a pie chart. The pie chart is especially useful at a glance to tell you how much space is available.)
Does your PC have enough random access memory (RAM)? Extra RAM is inexpensive to purchase and easy to install.
What are you using to access the Internet? Is your online service fast or slow? If you become a VA and set up a business, your online service will be a business expense. Consider getting broadband (cable) or DSL (digital subscriber line) Internet service for the fastest, most reliable service.
So, your action steps to take when you are deciding whether you would like to be a VA are to review your organization skills, your grammar, spelling, and communications skills, your software and PC skills, and the ability of your PC to handle the workload.
Next: What else goes into creating the business of a Virtual Assistant? What steps should you take to get your VA business up and running? See my next article,
#147;How to Create a #145;Virtual Assistant#146; Business#148;
for more information!
Glory Borgeson is a small business consultant and coach who loves to work with clients by phone from her Chicago-area home office. Please contact her at 630-653-0992 for more information about your home-based business.
Staff
2010-05-07T08:43:56Z
Isnt There More to Life Than Money?
Staff
http://www.DrLaura.com/b/Isnt-There-More-to-Life-Than-Money
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2010-05-07T08:43:55Z
2010-05-07T08:43:55Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Isn#146;t There More to Life Than Money?
Can we talk? Let#146;s agree together that only fools think that money is everything. For us, it#146;s not even in the top three#151;miles behind friends, family, health or spiritual values.
But neither is money unimportant. There are a lot of #147;good#148; people who dismiss the concept of financial success as an #147;unworthy#148; goal#151;perhaps even morally suspect. And with a title like, #147;The One Minute Millionaire,#148; we#146;re certain to raise a few eyebrows.
Still, we believe that many of life#146;s greatest enjoyments and more than a few of life#146;s greatest disappointments stem from our decisions about money. Whether we experience great peace of mind or constant anxiety can depend on getting our finances under control. Relationships can be greatly affected#151;according to one study, 88% of all divorces in our society result from disagreements about money. Understanding money--how to make it and keep it#151; is important to our life, to our relationships, to our happiness, to our future. That#146;s why we wrote this book.
Still, we realize that most people are simply not very good with money. Frankly, it#146;s not all that important to them. Being a loyal employee, earning a steady living and taking care of their families is all the financial success they seek. And that#146;s OK. We believe that with just a few extra minutes a week, a little more effort and a few extra dollars invested in the proper places#151;anyone and everyone can become financially successful. Even if you earn small amounts of money, you can become a millionaire on as little as a dollar a day#151;a minute at a time. We believe it#146;s worth the effort. We believe that you#146;ll be a better employee, a better family member, a better friend, a better member of society#133;if you will learn the skills of financial success.
#147;One of the first ways to help the poor is to determine not to become one of them.#148;
Mark Victor Hansen
Then, there are those#151;about 15% of us#151;who are motivated by money. These are the entrepreneurs in our society who love to launch businesses, start companies, market products and, yes#151;make money. Lots of it. They are the bumblebees of our society. In the process of hunting for nectar#151;buzzing about from flower to flower#151;a wonderful thing happens. The entire garden gets pollinated. Bees don#146;t intend to pollinate the garden#151;but that#146;s what happens. If you#146;re one of those bumblebees, we applaud you.
Whichever you are, the important thing is to be the best you can be. Money can help you get there. It can help you fulfill your purpose#151;your destiny.
Just like a flower naturally strains upward to reach the sun, we too yearn to reach our full potential. Just as the butterfly breaks free from the dark cocoon, you, too, can release yourself from the things that are holding you back#151;bad habits, unrealistic fears, blind spots, laziness, perfectionism. Just like an acorn has no choice but to duplicate the exact genetic code of a perfect oak tree, we too, contain the literal, genetic blueprint of a child of God.
You can learn to unleash your latent potential#151;to break free toward the true you, the real you#151; the YOU of destiny. Are you ready?
copy; 2001 Mark Victor Hansen and Robert G. Allen
Contact Robert G. Allen at
boballen@robertallen.com
or visit his website at
www.robertallen.com
Permission granted for this excerpt from the forthcoming blockbuster, One Minute Millionaire with Mark Victor Hansen for use on DrLaura.com.
Staff
2010-05-07T08:43:55Z
How To Find the Right Job in Today's Marketplace
Staff
http://www.DrLaura.com/b/How-To-Find-the-Right-Job-in-Todays-Marketplace
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2010-05-07T08:43:53Z
2010-05-07T08:43:53Z
Staff
2010-05-07T08:43:53Z
Child's Play
Staff
http://www.DrLaura.com/b/Childs-Play
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2010-05-07T08:43:53Z
2010-05-07T08:43:53Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Child's Play
www.smiles-all-around.com
My name is Christina Durboraw and the reason I started a home-based business was based on two basic ideas--I wanted to keep myself somehow active, but I would NOT leave my 1-year-old son under another person's care. A secondary reason was that my husband works on movie sets, so his schedule is unpredictable and irregular. Together, we agreed that whatever it took, we would make a business venture work.At the same time, my mother, who had been a stay-at-home mom while my brothers and I were growing up, was working in a full-time corporate job becoming more and more frustrated at having to limit the time she could spend with her first grandson. So I worked on a scheme that just might be the solution for both my family and my mom. I began by asking myself these questions: What could I do that could be incorporated into my every day life? What did I have enough passion for that I could deal with it everyday? Was there something in particular that would benefit my life? And the answer came to me--TOYS! Not only do I love to buy toys for my son, but also I truly find them, well, just plain fun to play with!
So the idea took shape. I already had a business license from a small venture I made years ago; I knew lots of people with young children who bought lots of toys. My mom and I could partner and be a perfect match--she likes the detail work and I know the market! But how could I, a little fish in a big ocean, compete with the big stores? We needed an edge, and here's what we came up with.
Toys are not a "necessity" to some people, but if there is one thing I know, it's that most moms would rather wear the same pair of pants every day if it means they can get that one special doll or action figure that their child is dreaming of. So the plan was to carry a few of the more poplar lines of children's toys and to offer them at prices that beat retail stores.
And--offer the best customer service we possibly can. We contacted a few select manufacturers, ordered toys that we believed would be popular, and began to sell to our groups of mothers and grandmothers.As a home-based business, we kept our overhead low, making it possible to grow the business steadily. Customers began referring other customers to us, and our network of contacts grew quickly, especially once we were entered the holiday season. It was simply doing what we do during any normal day--talk to our friends--and word of mouth from satisfied customers that took us far beyond our expectations. Now, a year later, we opened our business to the world through our new Web site with an impressive clientele base to help it get started.
The best part of our venture was that we didn#146;t have to mortgage our homes or take out big loans. The idea was small and we let it grow on it#146;s own. Now, our inventory is bigger than we ever could have dreamed of last year, and we are blessed with the opportunity to hire other stay at home moms to help us out. Like us, these moms are able to earn enough to give their child ballet lessons or sports equipment without compromising the time they spend with their children. As our Internet sales grow, it#146;s our goal to have mothers (and grandmothers!) across the nation working with us.In our business, as in our lives, we hold to strong morals and priorities; the rest we put into God#146;s hands. The best part is I am my kid's mom. I believe in what I sell and I love working with my mom. My son has an amazing relationship with his Grandma, and soon my husband will be working with us.Everyone has come out a winner!
Permission granted for use on DrLaura.com
Staff
2010-05-07T08:43:53Z
Work-At-Home Sales: The New Contact Sport
Staff
http://www.DrLaura.com/b/Work-At-Home-Sales:-The-New-Contact-Sport
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2010-05-07T08:43:52Z
2010-05-07T08:43:52Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Work-At-Home Sales: The New Contact Sport
Homebodies
By Cheryl Gochnauer
Cheryl@homebodies.org
It was fundraising time at my daughter's school. Competition wasfierce for buyers of magazine subscriptions, which translated intoprizes for the kids. Heaven help any adult with a checkbook!Fortunately, the yearly promotion only lasted a couple of weeks, then itwas safe to sit on my front porch again.
Just as teens are driven to achieve with their fundraising programs,parents with in-home businesses are motivated to succeed. Without thatincome, many at-home parents would have to go back to work.
It's no secret that the bulk of work-at-home opportunities involveselling. Cosmetics, children's toys, kitchen gadgets, householdcleaners - the conscientious work-at-home parent has a wide variety oflegitimate products to pitch. The wrinkle is in finding prospectivecustomers in a legitimate way.
"One of the moms from my son's preschool called to set up a play date ather house," said Linda. "I've been struggling to make new friends, andwas feeling so isolated. I was looking forward to visiting and talkingwith her.
"In between conversation about the kids, she began telling me about thebusiness she and her husband started a couple of months ago - they offerfinancial services - it's a big company - etc., etc., etc.
"So the real reason for the visit wasn't the play date, I guess," Lindafrowned. "I don't even have any money to invest!"
Linda ended up disappointed, and I suspect the other woman was, too.
Presentation is everything, and deceit will kill the deal every time.So what are some steps work-at-home salespeople can take to keep theirpotential customers happy?
Don't disguise a sales pitch as a social event.
Choose appropriate settings. For instance, most people attendchurch to worship, not shop.
Know your customer. Financially-challenged at-home moms should notbe trying to sell expensive gadgets to other financially-challengedat-home moms.
Make your presentation as low-key as possible, allowing people tocontact you if they're interested. No response means no. Following upis overrated, and often resented.
Support other work-at-home parents by occasionally purchasing theirproducts or services.
Resist turning every conversation into a sales pitch. "Did Johnnyleave his backpack at your house?" "Yes, he did, right here next to mycatalogs. I'll just slip one into his backpack and drop it bypersonally. Is 3 p.m. good for you?"
Don't spam in cyberspace or in person. Today, I've received 15emails, 2 phone calls, 6 pieces of mail and 1 knock at the door - allfrom people I don't know, pitching me products I never asked for. Canyou guess how likely I am to buy their stuff?
Once a prospect agrees to hear your presentation, value their time.For example, Debi was too rushed to listen to a salesperson on thephone, so she asked him to email the info. He did, then called to makesure she had received the email and to explain it. Click!
Don't ask questions with an ulterior motive. Build relationships,not databases.
Only represent products you enjoy yourself. That way, you'resharing a blessing, not simply selling something. When you encountercustomers who enjoy the product, too, it's a win-win situation.
You might want to consider Cheryl's latestbook, "Stay-at-Home Handbook: Advice on Parenting, Finances, Career,Surviving Each Day More" (InterVarsity Press, 2002) as a gift. Visit
http://www.homebodies.org/bookstore/orderSAHH.htm
or write
Cheryl@homebodies.org.
Permission granted for use on DrLaura.com
Staff
2010-05-07T08:43:52Z
How To Find A Good Job Through Great Referrals
Staff
http://www.DrLaura.com/b/How-To-Find-A-Good-Job-Through-Great-Referrals
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2010-05-07T08:43:51Z
2010-05-07T08:43:51Z
Staff
2010-05-07T08:43:51Z
The Importance of Mentorship
Staff
http://www.DrLaura.com/b/The-Importance-of-Mentorship
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2010-05-07T08:43:50Z
2010-05-07T08:43:50Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The Importance of Mentorship
Just as no one achieves great success without a great team, no successful person reaches the top without personal mentors.
What is a mentor?
The dictionary defines the word #145;mentor#146; as: A wise and trusted counselor or teacher. Another common definition is #145;a coach.#146;
Why do we need mentors?
First, a mentor can give us perspective. Often, we are too close to see things objectively. We are caught up in the emotions of the situation#151;the fear, the excitement, the wonder, the anxiety, the confusion, the overwhelm. A mentor is detached and can see things from a distance. Experience plus time equals wisdom. A mentor can give us the wisdom of a lifetime of experience.
Secondly, a mentor can give us proficiency. A mentor fills in the gaps of our ignorance. In mastering any new task, an experienced mentor can simplify the process, guide us through the complicated parts, help us avoid the pitfalls and warn us about the dangers. In short, a mentor helps us avoid the #145;school of hard knocks#146;#151;the most expensive kind of education in terms of time, money and emotional pain. A mentor gives us a shortcut.
Third, a mentor gives us patience. In learning any new skill, there is a learning curve. A mentor can teach us patience as we struggle through failure to achieve mastery.
Do you know any successful person who doesn#146;t have a mentor? Tiger Woods. Oprah Winfrey. Warren Buffett. Look behind the scenes of each and you#146;ll find a series of mentors.
Warren Buffett is the richest investor in the world#151;a billionaire many times over. Do you know who his mentor was? When Buffett was a senior in college he read a book by Benjamin Graham called The Intelligent Investor (still today, one of the great stock market classics.) For Buffett it was an epiphany. The young Buffett learned that Graham was teaching a business class at Columbia University in New York City, so Buffett enrolled there for his Master#146;s degree in Economics. After graduation, Buffett tried to get hired by Benjamin Graham#146;s investment firm (even offering to work for free) but it wasn#146;t until 3 years later Graham agreed to hire his young Proteacute;geacute;. Buffett spent the next two years being mentored by the famous author. The 25-year old Buffett returned to his hometown of Omaha, Nebraska and launched Buffett Associates with 7 investors. Buffett#146;s original stake was $100. Within 5 years Buffett was a millionaire on his way to becoming the mos famous stock investor in history.
This is the power of mentorship. Who are your mentors?
copy; 2001 Mark Victor Hansen and Robert G. Allen
Contact Robert G. Allen at
boballen@robertallen.com
or visit his website at
www.robertallen.com
Permission granted for this excerpt from the forthcoming blockbuster, The One Minute Millionaire with Mark Victor Hansen; Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:43:50Z
Give It A Shot
Staff
http://www.DrLaura.com/b/Give-It-A-Shot
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2010-05-07T08:43:49Z
2010-05-07T08:43:49Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Give It A Shot
by Cheryl Demas
www.WAHM.com
My daughter was only seven years old when she was diagnosed with diabetes.Those first few days in the hospital were challenging, as my husband, Nickiand I came to terms with the disease. We learned what we all needed to do tokeep her healthy. We had to learn how to do Nicki's blood tests and giveinsulin injections. Try getting a seven-year-old to stick herself with aneedle. And then tell her that she'll have to do that several times a day forthe rest of her life. It wasn't easy.
The nurse gave us an orange to practice on. She told us that giving theorange an injection would feel the same as giving our daughter an injection.Which was true, except the orange wasn't crying, digging its fingernails intomy arm, and asking me why I didn't love it anymore. Other than that, it waspretty much the same.
But this wasn't something that we could choose not to do, so we managed. Wecould have given shots to that orange all day long and it wouldn't have comeclose to the experience of actually doing it. Now, almost nine years later,we're so used to needles that we hardly give them a second thought. Somethings just have to be experienced in person. We did it because we HAD to.
I hear from a lot of people who run home businesses. Some are successful,many are not. I try to find similarities among the successful, and they oftenmention that failure is simply not an option. That doesn't mean that theydon't make mistakes, they do. But they don't let setbacks stop them. Theypick themselves up and give it another try. It's almost as if they HAVE to besuccessful.
I can tell you what it's like to run a business, and you can get advice fromother business owners, that's all good. But just like injecting that orangedidn't really prepare us for the real thing, nothing compares to theexperience of actually running your own business.
Now I'm not recommending jumping into your new business without preparingyourself and doing research, but when the time comes to get started, don'thold yourself back. You will probably make some mistakes. But you'll belearning every day, and there's no better teacher than experience.
If you've been thinking about starting a business, now is a great time to getstarted. Work at it as if it HAS to be a success.
Go ahead--give it a shot.
Cheryl is the founder and publisher of
WAHM.com
. She lives and works at herhome in California with her husband and two daughters. She is also the authorof "It's a Jungle Out There and a Zoo in Here" (May 2003, Warner Books). Permission granted for use on DrLaura.com
Staff
2010-05-07T08:43:49Z
The Power of Being "On Purpose"
Staff
http://www.DrLaura.com/b/The-Power-of-Being-On-Purpose
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2010-05-07T08:43:47Z
2010-05-07T08:43:47Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The Power of Being "On Purpose"
Are you #147;on purpose?#148; Being #147;on purpose#148; is knowing what you want to do with your life and doing it because it expresses who you really are. Tiger Woods, Oprah, Warren Buffet, Bill Gates. They're "on purpose." They're living the life they were born to live. It's hard to imagine them doing anything else. No wonder they#146;re so successful!
Here are four characteristics of people #147;on purpose.#148;
Passion: They love what they do. If they weren't getting paid, they'd do it for free.
Talent: They're good at what they do. Call it talent, ability or genius#151;they#146;ve got it.
Values: Doing what they do is extremely important to them.
Destiny: They have a sense that they are doing what they were born to do#151;making their own unique contribution. It's almost a spiritual thing. It#146;s their destiny.
Is purpose only found in the lives of genius? Absolutely not! We believe every person has a unique purpose#151;including you. You have unique talents, abilities, interests and values that only you can bring into greatness. You have a destiny that only you can fulfill.
So how do you begin to tap into this sense of purpose? Please complete the exercise below:
PASSION
What Do I Love To Do?
What activities give me the most satisfaction?
What excites me about life?
What is my secret ambition?
What are my hobbies?
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
TALENT
What Am I Good At?
What have other people told me I'm good at?
Where have I excelled in the past?
Where have I been successful?
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
VALUES
What is important to me?
What would I commit myself to if money was no obstacle?
What do I stand for? What won't I stand for?
What might I be willing to risk my life for?
Given only 5 years to live, what would I need to get done?
What values guide my daily life?
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
DESTINY
What was I born to do?
What is my unique mission in life? My niche?
What does God want me to do with my life?
What unique opportunties have been placed in my path?
Where can I make a difference?
What do I sense is my destiny?
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
The purpose of this exercise is to help you become aware of more aspects of your unique personality. The more you access these parts of yourself#133;
the more energy you will feel in your daily activities
the more fulfillment you will experience.
the more success you will have.
the faster you will become a millionaire#151;if that is #147;on purpose#148; for you.
Contact Robert G. Allen at
boballen@robertallen.com
or visit his website at
www.robertallen.com
Permission granted for this excerpt from the forthcoming blockbuster, The One Minute Millionaire with Mark Victor Hansen; Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:43:47Z
Keeping Spam From Canning Your Business
Staff
http://www.DrLaura.com/b/Keeping-Spam-From-Canning-Your-Business
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2010-05-07T08:43:44Z
2010-05-07T08:43:44Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Keeping Spam From Canning Your Business
By Cliff Ennico
www.cliffennico.com
.
How can you keep unsolicited e-mail messages #150; #147;spam#148; #150; at bay, without blocking out important messages from people you don#146;t already know? This is one of the great dilemmas of modern technology, one that every home based business needs to cope with, as there really is no perfect solution. The CAN-SPAM Act that Congress passed last year contains a lot of sympathetic language about how bloody awful spam is, but doesn#146;t really offer a simple or tough solution to the spam problem.
Let#146;s say you are a business consultant who relies heavily on e-mail to communicate with your clients. You advertise your consulting practice heavily, and because you always include your e-mail address, you get lots of e-mail every day from people who have seen your advertising and want more information about what you do. Your biggest problem is spam. You#146;re getting over 1,000 spam messages every day, and it#146;s taking you close to an hour a day to wade through all the junk. That#146;s probably too much time, but you#146;re absolutely petrified that you are going to delete an important message from one of your clients in the mistaken belief that it#146;s spam. Sound familiar?
E-mail is fast becoming the predominant means of communications between consultants (such as myself) and their clients. It#146;s fast, it#146;s cheap, and it happens in #147;real time#148;. The bad news is that it#146;s often tough to tell important e-mail messages from #147;spam#148;. For the uninitiated, #147;spam#148; is an unsolicited commercial e-mail from someone that#146;s trying to sell you something (usually a cheap or sleazy something) you don#146;t want, entice you to enter into a fraudulent investment scheme, or join a club of people you would never want to be associated with. Just in the 60 seconds it took me to write this paragraph, I have received 10 spam messages. Oops, there#146;s another one.
Under the federal CAN-SPAM Act, spammers must allow you to #147;opt out#148; from receiving future messages, but fell far short of making spam illegal. Do you really have the time to follow the #147;opt out#148; procedures in every spam message you receive? Even if you did, how do you know the spammer won#146;t put your address on another junk mailing list and e-mail it to 10,000 of his spammer friends? Until Congress or the Federal Trade Commission sets up a #147;do not spam#148; registry of e-mail addresses similar to that already in effect for telemarketing phone calls (and to my knowledge, no efforts are currently being made in that direction), we are on our own when it comes to dealing with spam and the people who send them (many of whom, out of fairness, are small family businesses like your own who are trying to make a living in the rough and tumble world of the Internet #150; hey, I#146;m sure some spammers read this column).
There are literally dozens of #147;spam filter#148; software programs you can buy that can filter out the worst of the spam messages you get each day (type #147;spam filter software#148; into your favorite search engine), but they all work on the same, somewhat limited, principle. The program scans your e-mail address book, and anyone who sends you an e-mail who#146;s not on the list is considered a #147;spammer#148;, and treated accordingly. While the better programs will give that someone a chance to prove that they are not sending spam, most prospective customers won#146;t take the time to deal with your watchdog software program (they will probably think the program#146;s response is itself a spam message, and will delete it accordingly). So what do you do?
Check Your E-Mail Frequently
. If you check your e-mail messages only once or twice a day, you are likely to have a couple of hundred messages to review. If you check your e-mail messages every 15 minutes or so, you will have only about a dozen, and it will be easier to spot the good ones.
Use Your Preview Feature
. Most e-mail programs (such as Outlook Express) have a #147;preview#148; feature that allows you to see the contents of an e-mail message before you officially open it. Look at the preview page first before looking at the subject heading or who it#146;s from. If the preview takes more than a split second to load, it#146;s probably spam.
But . . . by using the #147;preview pane#148; in Outlook Express, aren#146;t you making your computer more vulnerable to computer viruses or #147;worms#148; that could destroy your hard drive? I polled several computer professionals about this recently, and received some conflicting advice. Some (whose anonymity I will protect) tell me the most prevalent computer viruses or #147;worms#148; are not in the text of the e-mail message itself, but rather in an attachment which would have to be separately opened. So merely viewing the #147;cover page#148; of the message would not begin installation of the virus or worm, and you should be okay using the preview pane in Outlook Express. Even if a worm or virus could be downloaded from the preview pane, it would take a couple of seconds to begin installation, so deleting a suspicious-looking message quickly would block the installation process before any damage could be done. Of course, you have to have a quick trigger finger to make that work.
Arthur Gerstein, founder of SoHo Computer Solutions (
agerstein@sohocs.biz
), disagrees with this laid-back approach. #147;You really shouldn#146;t use the preview pane in Outlook Express#148; says Gerstein, who advises that the best way to avoid computer viruses and worms in general is to avoid #147;eating tainted flesh#148; #150; simply put, you should avoid Microsoft products as much as possible, as those are the programs the virus-mongers go after. Explains Gerstein: #147;There are perfectly good office suites that work in Windows, such as Star Office (
www.sun.com/staroffice
), that are far less expensive than Microsoft#146;s Office product and much less prone to attack from viruses. I am using Pocomail (
www.pocomail.com
) instead of Outlook Express right now, simply because nobody is writing malicious code for Pocomail. Linux, anyone?#148;
Well, maybe, but how many readers out there are really ready to scrap software that an overwhelming majority of people use? There is no perfect answer to this problem, and you may have to make a difficult choice: if you are more afraid of deleting an important message in the mistaken belief that it#146;s spam, use the #147;preview#148; feature in your e-mail program; if you are more afraid of viruses or worms, do not use the #147;preview#148; feature in your e-mail program.
Make the Subject Heading Distinctive
. When you scroll through your e-mail, you are allowed to identify messages either by the sender#146;s name or by a subject heading. You should look at both before deleting any message #150; there are real people out there with names like #147;Mohammed O#146;Reilly#148;. Tell your clients they should put their name or a key phrase into the subject heading of each e-mail message they send you, so you will be sure to spot it. For example, if you send me an e-mail, you should put #147;re: your column#148; or #147;Home Business Journal#148; into the subject heading. If I see words like that, I will take a closer look at your message. More general subject headings, such as #147;thought you should see this#148; or #147;I#146;ve got a problem#148; are much more likely to be spam, and if I#146;m in a rush I will probably delete your message without reading the preview page.
Use a Code Phrase
. Of course, when it comes to prospective customers, you cannot call them in advance and tell them what to put in their subject headings. So, whenever you include your e-mail address in your advertising, Web site or whatever, be sure to say something like #147;mention #145;Code X#146; in your e-mail subject heading for better service#148;. That way, whenever you see #147;Code X#148; in an e-mail heading, you will know it#146;s from someone who saw your advertisement.
Check Twice Before Deleting
. When you delete an e-mail message, it usually goes to a #147;Deleted Items#148; folder before it disappears entirely from the face of the Earth. Before deleting the items in your #147;Deleted Items#148; folder (which you should do at least daily), review the sender names and subject headings one last time before sending them into oblivion. I can#146;t tell you how many times this has saved me from deleting an important message.
Clearly, the solution to the spam problem is to cut down on the amount of spam you receive. Here are some tips on keeping your computer spam-free. First, never give anyone on the Web your e-mail address. Often sites ask visitors to #147;register for free#148; and then turn around and give or sell the addresses they collect to spammers. If you must register on someone#146;s Website, you should enter a fake e-mail address, or create an alternate e-mail address on a free Web e-mail service, such as hotmail.com, and use that one specifically for site registrations and surfing the Web. That way you can check the free address only once a month or so to delete all of the junk e-mail you will undoubtedly receive. If you are still getting too much spam, you can use the Rules Wizard in Microsoft Outlook to have the messages you receive automatically sorted, or simply delete the messages, which takes only a few seconds. Oh, and never, never, never reply to junk e-mail, even if it says to #147;unsubscribe#148; via e-mail. At best, it will let them know that they are sending spam to an active account and someone is reading it!
To avoid spreading your spam to folks you e-mail, you should:
delete headers (those long lists of addresses at the top of forwarded e-mail) from messages that you are forwarding to someone else #150; not only are headers annoying to scroll through, it also could provide an unscrupulous person with a host of new addresses to spam; and
use #147;blind carbon copy#148; (bcc) instead of the #147;to#148; line when you send e-mail to a long list of people #150; #147;bcc#148; prevents recipients from seeing who else received the message.
If anybody out there has any other solutions, please let me know. This is a problem I live with daily, and I#146;ll be happy to credit you in a future column. And be sure to include the words #147;Your Column on Spam#148; in the subject heading . . .
CLIFF ENNICO, best known as the host of the PBS television series #147;MoneyHunt#148;, is the author of the nationally syndicated newspaper column #147;Succeeding in Your Business#148; and the legal correspondent for the Small Business Television Network at
www.sbtv.com
. You can find out more about him at
www.cliffennico.com
. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:43:44Z
Retail Spies
Staff
http://www.DrLaura.com/b/Retail-Spies
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2010-05-07T08:43:42Z
2010-05-07T08:43:42Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Retail Spies
By Julie Fichtner
Associate Consumer Evaluations, LLC Staff Writer
www.acemysteryshopping.com
The customer looks innocent enough as she is browsing down the aisles, but she is a highly trained retail spy! She is an under cover agent in the business world. Observing the staff as if she is a regular customer, she#146;s taking everything in, from hospitality and cleanliness to knowledge of job. And that's not all! After her shopping experience, she will write a detailed narrative report that gets sent to the boss!
The scenario is a longtime practice of mystery shopping or secret shopping, in which business owners hire shoppers to anonymously evaluate employees to monitor their customer service skills.
#147;Mystery Shopping is a powerful tool,#148; says Tiffany Stewart, of Associate Consumer Evaluations, LLC. #147;Mystery Shopping can be used in a variety of ways, such as to train employees where more training is needed or to reward employees for a job well done.#148;
Mystery shopping companies pay shoppers an average of $10.00 to $30.00 for completing an assignment. Sometimes they are reimbursed for services, such as oil changes or meals at restaurants. It#146;s an excellent opportunity for stay at home moms! Many assignments allow you to bring your children in tow. After all, the average customer has children too!
#147;Mystery Shopping takes lots of practice#148;, Stewart says. #147;You must learn to be objective and observant at the same time, while keeping your cover. You need excellent writing skills, as well as a good memory.#148;
After the visit, the mystery shopper goes online to transmit the report to the mystery shopping company, who then edits the report and verifies it for authenticity. Once the editors give the report the final review, results are available via the internet to the managers. With today#146;s technology of the internet, reports are often delivered to the company within 24 hours of the evaluation. No more snail mail, faxes or annoying e-mail attachments to open. Since everything is web based, businesses are able to view all their reports in one place, without having to shuffle through a stack of papers to see results.
Patty Carter, owner of Clinton Quick Lube, Clinton, Missouri, said she is a firm believer of mystery shopping.
"I get a lot more information than I would with customer comment cards," she said. "I get to see my business from the customer point of view. With comment cards, it seems that only very satisfied or very dissatisfied customers take the time to fill them out."
Lexington, KY resident, Jacqueline Kelley, 32 and a mother of a three, said she likes the flexible hours of being a mystery shopper.
"It#146;s so much fun to shop and eat out and get paid for it," she said. "I've done restaurants, hotels and retail stores and it's really fun! I love all the freebies I get doing this! It's unusual."
Shoppers need to use caution when applying to mystery shopping companies. There are several services that charge shoppers for a list of companies #150; information they can find for free on the internet. The more companies a shopper signs up with, the more likely they are to get regular assignments.
For more information on mystery shopping, go to
www.acemysteryshopping.com
Julie Fichtner,
julie@mysteryshopping.com
. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:43:42Z
The Awesome Power of leverage.
Staff
http://www.DrLaura.com/b/The-Awesome-Power-of-leverage.
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2010-05-07T08:43:41Z
2010-05-07T08:43:41Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The Awesome Power of leverage.
Archimedes created the lever of which he said: #147;Give me a lever long enough and fulcrum strong enough and I can move the world.#148; In business, that same concept is called leverage. Leverage is the power to control a lot with just a little. Big doors swing on little hinges. In the business world, there are five kinds of leverage.
OPM#151;which means Other Peoples#146; Money. In real estate investing we buy residential real estate with ten percent down and yet we control one hundred percent of the property. Bob Allen#146;s classic book, Nothing Down, teaches how to achieve ultimate leverage: how to buy property with little or no money down.Thousands of people have become millionaires using this system.
OPE#151;is Other Peoples#146; Experience. It takes too long to learn it yourself, so borrow or learn from others. The easiest way to become rich is to apprentice personally with someone that is rich. Learn all they know, meet all their contacts and do what they do#151;do it even better. If this isn#146;t possible, read their books, listen to their tapes, watch their videos, interview them, if possible, and attend their seminars. One idea you learn can save you ten years of work effort. Leverage is about maximizing your results in a minimum amount of time. Therefore, absorb lifetime bodies of information and insight#151;congealed into instant usability just for you#151;in the forms of books, tapes, CD#146;s, films, videos and seminars. This is the cheapest and quickest way to gain OPE.
OPI#151;stands for Other Peoples#146; Ideas. When Mark wanted to become a professional speaker, he attended the National Speakers Association meeting in 1974. Cavett Robert, the Dean of Speakers and co-founder of this association talked about how to create multi-authored books. Within a month, Mark had adopted the idea and created a book with Keith DeGreen called Stand Up, Speak Out and Win. They enrolled fourteen co-contributors who each invested $2,000 to obtain 1,000 books each. It was Mark#146;s first zero cash investment. He capitalized on someone else#146;s idea to personally earn $200,000 in that year (selling 20,000 copies at $10 each.) Your objective is to associate with people who can share with you their powerful money making ideas.
OPT#151;is Other Peoples#146; Time. Individuals will sometimes volunteer their time in certain circumstances, but most will sell you their time, talent, connections, resources and know-how relatively inexpensively. Leverage yourself with professionals who are excellent and unique at employing their abilities.
OPW#151;Other Peoples#146; Work. Most people want a job. They want security, rather than opportunity. Hire and delegate to them everything that you don#146;t want to or can#146;t do as well. Leverage yourself through other people and grow.
Millionaires are masters at using all five kinds of leverage.
copy; 2001 Mark Victor Hansen and Robert G. Allen
Contact Robert G. Allen at
boballen@robertallen.com
or visit his website at
www.robertallen.com
Permission granted for this excerpt from the forthcoming blockbuster, The One Minute Millionaire with Mark Victor Hansen; Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:43:41Z
10 Tips for Avoiding Home Business Scams
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http://www.DrLaura.com/b/10-Tips-for-Avoiding-Home-Business-Scams
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2010-05-07T08:43:40Z
2010-05-07T08:43:40Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>10 Tips for Avoiding Home Business Scams
By Lesley Spencer, MSc.
Founder Director of
HomeBasedWorkingMoms.com
Before investing in any home business opportunity, we strongly recommend that you take steps to research the opportunity and the company to reduce your chances of losing your hard-earned money.
Here are 10 tips from the national association of Home-Based Working Moms (
www.HBWM.com
)
Research the company and always check them out with the Better Business Bureau located in their city.
Ask for at least three references of people they have worked with. Call each person and ask about their experiences with the company.
Be cautious of any company that asks for money to make money (such as money for registration, materials or instructions).
Don't be fooled by ads claiming you can make large amounts of money in short periods of time. And be cautious of companies that require you to sign up immediately. If it sounds too good to be true, it usually is.
Get specific information (in writing) from the company such as how long they have been in business, where they are located (not just a P.O. Box), how many customers they have, what their refund policy is (read it thoroughly), how long it takes to get paid and if there are any restrictions on payments, etc.
If you do invest in a business opportunity, use your credit card instead of cash. It may be easier to dispute the charges with your credit card company rather than trying to get your money back from a fraudulent company.
Research current scams on web sites such as ScamBusters at:
www.scambusters.com
.
Call the National Fraud Information Center at (800) 876-7060 for information or visit their web site at:
www.fraud.org
.
Report any scams or fraudulent companies to the Federal Trade Commission
www.ftc.gov
, your state's Attorney General and the National Fraud Information Center, PO Box 65868, Washington, DC 20035, (800) 876-7060.
Don't invest in any opportunity that you are not sure about. Instead, find something that you are interested in and will enjoy doing. (Do what you love, and the money will follow.)
Lesley Spencer is founder and director of the national association of Home-Based Working Moms (
www.HBWM.com
) and the creator of Mom#146;s Work-at-Home Kit (
www.MomsWorkatHomeKit.com
). Helping moms find work-at-home success.
Permission granted for use on DrLaura.com
Staff
2010-05-07T08:43:40Z
Braille Transcribers: Working from Home
Staff
http://www.DrLaura.com/b/Braille-Transcribers:-Working-from-Home
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2010-05-07T08:43:39Z
2010-05-07T08:43:39Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Braille Transcribers: Working from Home
By Sharon von See
www.techadapt.com
There are many of us in this country who have "work at home" businesses as Braille transcribers.
The work involved requires training and dedication. The American Foundation for the Blind and the American Printing House are working in collaboration to begin community college training courses because of the lack of Braille transcribers in the country.
In the past, a visually impaired child had to wait, usually months, to have the same book that the sighted child had on the first day of school. With Braille translation software that is now available, the wait could be non-existent, if there were enough transcribers available.
My own business is a success, as are the many other transcribers I know who have gone "out on their own".
Of course, if we could find a voice with Dr. Laura, the children without Braille books may get them in a timely manner.
Sharon von See
TechAdapt, Inc.
Braille Services/XML File Conversion
also see:
www.aph.org
www.afb.org
The Braille Institute only offers one 11-month transcribing class in Los Angeles. They do not currently offer classes in any other cities or states. There are many other organizations that can provide your listeners with training on how to become a Braille transcriber. Please contact the Library of Congress at 1-800-424-8567, for additional information.
Permission granted for use on DrLaura.com
Staff
2010-05-07T08:43:39Z
The Booklet Journey
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2010-05-07T08:43:36Z
2010-05-07T08:43:36Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The Booklet Journey
copy; 2003, Paulette Ensign
Way back in 1991, when my professional organizing business was already 8 years old, Ispotted an offer for a free copy of a booklet called "117 Ideas For Better Business Presentations" . Well, because I do business presentations, and because the price was right, I sent for it. My first reaction was, 'geez, I could knock something like this out about organizing tips.' Then I threw it in a drawer.
Six months later I was sitting in my office, bored, baffled and beaten down by the difficulty of selling my consulting services and workshops in a slow economy. I had no money. I mean no money!
I remembered that little booklet. I had no idea how I was going to do it, but something hit me, and I knew I had to produce a booklet on organizing tips.
I started dumping all those ideas I ever had about getting organized onto a file on my computer. These were all pearls that came out of my mouth when I was with clients or when I did a speaking engagement or a seminar. I could do one booklet on business organizing tips -- a 16-page tips booklet, fitting into a Number 10 size business envelope. The booklet was '110 Ideas for Organizing Your Business Life.'
My first run was 250 copies. That was the most expensive per-unit run I made, but I had to get samples to distribute to start making money. It took a few months to pay the printer only $300.
The only way I could think of selling the booklets was by sending a copy to magazines and newspapers, asking them to use excerpts and put an invitation at the bottom for readers to send $3 plus a self-addressed stamped envelope. I had no money to advertise. Then the orders started dribbling in, envelopes with $3 checks in them or 3 one-dollar bills. This was great stuff. I remember the day the first one arrived. It was like manna from heaven:$3! Of course, the fact that it took about 6 months from first starting to write the booklet until the first $3 arrived somehow didn't matter at that moment.
I cast seeds all over the place, hoping that some would sprout. I found directories of publications at the library and started building my list.
Finally, February of 1992 'the big one' hit. A 12-page biweekly newsletter with 1.6 million readers ran nine lines of copy ABOUT my booklet. They didn't even use excerpts!! That sold 5000 copies of my booklet. I distinctly remember the day I went to my P.O. box and found a little yellow slip in my box. It said, 'see clerk'.
There was a TUB of envelopes that had arrived that day, about 250 envelopes as I recall, all with $3 in them.
Round about June, I stopped and assessed what had happened. Was I making any money? By then, I had sold about 15,000 copies of the business organizing tips booklets one copy at a time for $3. When I checked my financial records, I realized I had tediously generated not a ton of money.
And some of the lessons I had learned along the way were expensive ones. I didn't realize my bank was charging me $.12 for each item deposited until I got my first bank statement with a service charge of $191.
Some very wonderful things happened while selling those 15,000 copies though.
A public seminar company ordered a review copy to consider building another product from my booklet. They did, and I recorded an audio program based on the booklet. I can sell that tape to my clients as well and it led to a 20-minute interview on a major airline's in-flight audio programming during November and December one year.
I was sorting through the envelopes, ...$3, $3, ,$1000, $3,..... wait a minute. Well, a manufacturer's rep decided to send my booklets to his customers that year instead of an imprinted calendar.
A company asked me to write a booklet that was more specific to their product line.
I got paid speaking engagements from people who bought the booklet.
I found out that the list of people who bought my booklet was a saleable product.
Things were starting to pick up. So, back to June and taking stock of where I was. You know those advertising card decks in the mail? Well, that day in June I was so bored, I opened one. Glancing through it, I said, 'jeez, here's a company that oughta see my booklet. And here's another one, and another one.' I sent booklets to each.
Less than a week later, a woman called. At first, it sounded like a prospecting call. Fortunately, I wasn't too abrupt with her. She was calling to ask me the cost of 5000 customized copies of my booklet for an upcoming trade show. She wanted to know if I could match a certain price.
I slightly underbid her price, she was thrilled and the sale was a done-deal. I thought, 'oh, this will be easy to sell large quantities now'. Wrong. It was another three-four months until the next large-quantity sale. But, the trade show they were attending was an organization I had contacted about getting my booklet into their catalog. They rejected it because I wasn't in their industry. So, my buyer had bought 5000 copies of my booklet, with my company information in it, to distribute at that trade show. I loved it!
One day, a guy I know from a major consumer mail-order catalog company said, 'Why don't you license us reprint rights to your booklet. We can buy print cheaper than you, so if you charged us a few cents a unit, you wouldn't have to do production. 'Well, 18 months later after lots of zigging and zagging that sale happened: a non-exclusive agreement for them to print 250,000 copies. We exchanged a ten-page contract for a five-digit check.
They provided the booklet free with any purchase in one issue of their catalog and made a 13% increase in sales in that issue. They were happy. I was happy.
I looked for other licensing prospects (even though it took eighteen months for this sale to happen, and the five-digit check was low five-digits, not enough to sustain me).
Round about spring 1993, I designed a class on how to write and market booklets and wrote an 80-page manual. The class was small and mostly people I knew. They paid me money, and I had a chance to test-run the class. So now, I had another new product, an 80-page manual, a blueprint of how I had then sold more than 50,000 copies of my booklet without spending a penny on advertising.
I like teaching and now I had a new topic besides the organizing I had been presenting. I also like traveling. So I took the 3-hour class on the road and had great fun doing it.
I toured the country for about 2 years, 6-8 classes a year. Many people have written interesting booklets on all kinds of topics. Some have hired me to write a customized marketing plan for their booklet or to coach them by phone to develop their booklet business.
Midway through that year (August 1994), I discovered Compuserve. My sole purpose for getting online was to market my business. The third day I was online, I saw a forum message from a guy from Italy who had a marketing company there. He told me his client base was small businesses and companies who served small businesses. I told him I had a booklet he might find useful. I sent it to him, he liked it and we struck a deal. He translated, produced and marketed it, and paid me royalties on all sales. That January he wired several thousand dollars to my checking account from Italy. He made the first sale of 105,000 copies to a magazine that bundled a copy of my booklet with one issue of their publication.
That meant I have sold more than 500,000 copies of my booklet, in three languages, without spending a penny on advertising. One slow week, I posted a message on some Compuserve forums about the story of the Italian booklet as an example of an online success story. Even though blatant selling is not allowed, creating mutually beneficial relationships is. I had received money from someone I had never spoken to and had only communicated with online, by fax, earth mail and EFT.
Folks who read those postings replied that they would be interested in doing the same thing with my booklet, but in French and in Japanese. This never even dawned on me.
I've also discovered licensing opportunities for my booklet content in other formats. Two different companies who produce laminated guides (one hinged, the other spiral bound) licensed my content.
Tips Products International was created as a business of its own, providing a range of products and services to people wanting to write, produce, and market their own booklet, or have much of it done for them. We write tips booklets for clients based on their raw print materials. Three home study packages have been developed:
How To Write and Market Booklets for Ca$h
How to Promote Your Business With Booklets
How to Make Huge Profits Licensing Your Booklet.
All our courses and services are now also being distributed by resellers around the world. I've been invited to speak nationally and internationally, in person and by Teleclass, about how to write and market booklets and how to promote a business with booklets.
I never could have written a business plan for how this has all unfolded. Clients of mine are now surpassing my own sales results, learning from allthat has gone on since the original organizing booklet was written in 1991.
Paulette Ensign has never taken a business course in her life. She taughtstring instruments in public elementary schools for eleven years, became a Professional Organizing Consultant, and then went on to create a business based on the niche of booklets. Visit her web site at
www.tipsbooklets.com
to see the menu of products and services to support your booklet success.
Paulette Ensign
"We help individuals and organizations transform their knowledge into tips booklets for marketing, motivating, and making money."
Tips Products International
voice: 858-481-0890
fax 858-793-0880
Paulette@tipsbooklets.com
Permission granted for use on DrLaura.com
Staff
2010-05-07T08:43:36Z
Is a Microloan Right for You?
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http://www.DrLaura.com/b/Is-a-Microloan-Right-for-You
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2010-05-07T08:43:35Z
2010-05-07T08:43:35Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Is a Microloan Right for You?
Jillian Coleman copy; 2003
Permission granted for use on DrLaura.com
If you#146;ve been tossing around an idea for a small business, but wondering where you#146;ll find the money you need to get started, perhaps you should consider a microloan. Microloans are ideal for getting a new business off the ground. A microloan can also provide an infusion of cash to help an existing small business grow.
The term #147;microloan#148; refers to a business loan smaller than most banks care to process, often to a borrower no bank would consider. The term came into vogue during the 1980#146;s, as funders began to realize that $200 loaned to a cooperative of women in a third world country could empower those women to start a business capable of supporting their families.
In the United States, a microloan is usually between $2,000 and $35,000. Most microloans in this country are made by non-profit organizations funded by the Small Business Administration, a government agency. The SBA established a pilot program for microloans in 1992, and the program was made permanent in 1997. To date, more than $112 million has been made available to small businesses under the microloan program.
Virtually any kind of small business can apply for a microloan. The form of the business, whether it is a sole proprietorship, a partnership, or a corporation, is not a determining factor. Non-profit daycare centers are also eligible to apply.
Loan funds can be allocated as working capital. The funds can also be used to purchase inventory, supplies, furnishings, fixtures, machinery or equipment. The one restriction is that the funds may not be used to purchase or make a down payment on real estate.
Perfect credit is not necessary, although the credit requirements vary according to the requirements of the lender. Often lenders require collateral, but may be very flexible in terms of what they accept as collateral. For example, a lender may accept jewelry, office equipment, or used cars to collateralize the loan.
Interest rates vary, but they are usually slightly higher than rates for conventional bank loans. Terms vary according to the size of the loan, the planned use of the funds, the requirement of the intermediary lender, and the needs of the borrower. The maximum term for repayment is six years.
One of the real benefits of securing a microloan has nothing to do with the money. The non-profits that serve as intermediary lenders also provide a significant level of management training and coaching. For example, a lender may require a prospective borrower to participate in a class and receive assistance in writing a business plan.
Another benefit is speed. The process of applying, qualifying for, and obtaining a microloan usually ranges between a few days and three weeks, depending upon the amount of funds needed, the procedures employed by the lender, and the degree of preparation on the part of the borrower. To speed the process along, it#146;s a good idea to assemble as much paperwork as possible in advance. Borrowers should be prepared to provide tax returns, financial statements for existing businesses, bank account records, and proof of collateral.
To find out about lenders in your area, you can phone 1-800-U ASK SBA. Or use the following link to get a list of lenders nationwide:
http://www.sba.gov/gopher/Local-Information/Microloan-Lender-Participants/
Jillian Coleman is a consultant to businesses and non-profit organizations. Her website,
www.GrantMeRich.com
, is a resource site for entrepreneurs, grant writers and consultants. Jillian is the author of books related to grants and business, includingBig Bucks for Free: The Complete e-Guide to U.S. Government Grants, and Build Your Small Business Now! Secrets of Success for Entrepreneurs.
Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:43:35Z
Choosing Your Millionaire Mountain
Staff
http://www.DrLaura.com/b/Choosing-Your-Millionaire-Mountain
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2010-05-07T08:43:34Z
2010-05-07T08:43:34Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Choosing Your Millionaire Mountain
In the whole wide world of money there are only three major ways of becoming a millionaire. No matter what your background, you can learn to master one of these areas.
Stock Market: Accumulating shares.
Real Estate: Owning properties.
Business: Marketing products, services or ideas
We call this the Mountain Range of Wealth. There are a lot of routes to the top of each mountain. We will teach you many different models for creating wealth later on in this book. But for now, realize that you will probably reach your million-dollar goal with a combination of all three. Suppose you make a fortune in business (admittedly, this is a very large category with hundreds of ways to make money.) You#146;ll still need to invest your excess cash in the stock market or other forms of passive investment. Certainly, you will need to buy some real estate along the way#151;and if you can buy it at wholesale prices instead of retail, it can make a huge difference.
For now, just be aware of the three major mountains. Make an initial #147;gut#148; decision to choose one mountain#151;something that you sense is going to be your primary investment vehicle. Suppose you were enrolled in the University of Money. Which would be your #147;major?#148; Which would be your #147;minor?#148; Which mountain interests you the most? Which one scares you the most?
Imagine yourself in conversation five years from now. Try these words on for size:
#147;I made my millions in real estate.#148;
#147;I made my millions in the stock market.#148;
#147;I made my millions in business.#148;
Which one seems right to you?
copy; 2001 Mark Victor Hansen and Robert G. Allen
Permission granted for use on DrLaura.com
Staff
2010-05-07T08:43:34Z
Some Business Tips For The Aging Rocker
Staff
http://www.DrLaura.com/b/Some-Business-Tips-For-The-Aging-Rocker
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2010-05-07T08:43:32Z
2010-05-07T08:43:32Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Some Business Tips For The Aging Rocker
By Cliff Ennico
www.creators.com
.
I#146;ve been getting e-mails lately from aging Baby Boomers who are forming rock-and-roll bands. Proof yet again that our graying generation is refusing to grow old gracefully . . .
Here#146;s a good one: #147;By day I#146;m a humble construction contractor, but at night I put on leather pants and hit the road with a rock band I#146;ve formed with three of my buddies. We play local bars and college hangouts, specializing in straight-ahead 1960#146;s style rock #150; mostly original songs that I#146;ve written. We have even cut a demo record which we#146;re trying to pitch to record companies. We all share the band#146;s expenses, and split the profits equally if there are any. Do we need to have a formal legal agreement? We#146;re all in our mid to late 40#146;s and are just looking to have a little fun before we die, but you never can tell #150; this could lead to something.#148;
You gotta love a guy like this, still hanging onto rock-and-roll dreams while he#146;s hanging sheetrock. As long as you guys are just having fun for a few beers, it really won#146;t matter if there isn#146;t a formal agreement between you #150; after all, it wouldn#146;t be quite in the spirit of the 1960s, would it? But if you are thinking about taking your music seriously, then yes, #147;Mick#148;, there are legal issues to think about, such as:
Avoiding a Legal Partnership
. If you are splitting profits and expenses with your buddies, then what you#146;ve got is a #147;partnership#148; for legal and tax purposes. You will have to file a tax return with the IRS on Form 1065 each year (it#146;s due on April 15), or face late filing penalties of $600 per partner #150; so $2,400 in your case. Also, the only way you can legally get rid of a #147;partner#148; is to buy out his interest for whatever he#146;s willing to accept. So if your drummer decides he wants to spend more time #147;hanging out with his old lady#148;, it#146;s gonna cost you some bread. To avoid this, each band member should agree that there is no intent to form a partnership, that he is responsible for paying any taxes on his share of the band#146;s profits, and that only one dollar will be paid to any member who withdraws or is discharged from the band (for example, for repeatedly failing to show up at gigs). An agreement like that may not totally convince the IRS, but it#146;s better than nothing.
Making Sure Decisions Get Made
. When you#146;ve got a band, there are a lot of decisions to be made, like:
what gigs are you going to take on, and turn down?
what new songs will the band play, and what old ones aren#146;t working?
where are you going to send your demo recording?
if a record company offers you a deal, what terms will you accept?
how will changes in the band#146;s lineup be made?
Obviously, you are trying to run this band as a democracy, with decisions made as a group effort. But there will be times when the band#146;s members disagree, or an unpopular decision needs to be made. With four of you, there#146;s a good chance of a two-two split, which lawyers call a #147;deadlock#148;. You need to reach an agreement with your mates that one of you is the #147;leader#148; of the band, and will make all the tough decisions after seeking input from the other members. The other guys will have to trust that the leader will do the right thing.
This is tough advice, but all music groups need to deal with it. Remember Pete Best? He was the original drummer for the Beatles, a good friend of John, Paul and George during their Liverpool days. Then the Beatles signed up with EMI Records, and their producer, George Martin, decided that Pete wasn#146;t up to the job. End result? We got stuck with Ringo Starr, and Best . . . well. The music business is an utterly ruthless one, and while you are no doubt loyal to your band mates, are you really willing to pass on being the next #147;American Idol#148; just because your bass player#146;s a little off key?
Who Owns the Songs
? You say you have written all of the band#146;s original songs, but are you sure you own all of the rights to the songs? If any of your buddies has helped you write the music or lyrics to a song, they legally own a piece of the copyright. Rock musicians make money from their records and concerts, sure, but they make a lot more from copyright royalties on their original music #150; you don#146;t want a former bandmate coming out of the woodwork years from now with a fancy Hollywood lawyer claiming that his client #147;put the bomp in the bomp-bah-bomp-bah-bomp#148; (copyright Barry Mann and Gerry Goffin, 1961). Your agreement should clearly state that you are the #147;sole author, copyright holder and owner of all rights#148; to each song the band develops. Also, the other members should assign to you any rights they may #147;now or hereafter#148; have in any of the band#146;s songs.
Again, we look to the Beatles for enlightenment (if you are interested in the Beatles#146; business dealings, by the way, the best book around is
The Love You Make
, by Peter Brown). Early on in the band#146;s history, someone convinced Messrs. Lennon and McCartney to sell the publishing rights to over 250 of their early hits for a #147;song#148;. So whenever you hear an early Beatles classic playing on your local radio station today, Sir Paul and Yoko Ono (John#146;s widow) get hardly anything for it. Instead, a small amount of money is paid to the person who owns the #147;publishing rights#148; to the song. Who, believe it or not, is . . . Michael Jackson, who bought the Beatles catalogue at an auction in 1985.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2004 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:43:32Z
So You Want To Work From Home?
Staff
http://www.DrLaura.com/b/So-You-Want-To-Work-From-Home
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2010-05-07T08:43:30Z
2010-05-07T08:43:30Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>So You Want To Work From Home?
Jodie Lynn
ParentToParent.com
www.WAHMtalkradio.com
I recently read an article about women having to choose between the home and the office. I know that there is an area in-between the two of these that is the work-at-home movement. I am very interested in this but have no clue how to avoid scams. I would love to be a work-at-home parent to have more family time. Which ones do you recommend and are there any books or websites that you would personally recommend?
Choose a business in which you have a working knowledge as a result of your education, work, hobby, and/or volunteer experiences. Make sure there is a potential market for your proposed idea. Here are some places to go for free or low-cost business startup counseling: Women's Business Center
www.onlinewbc.gov
or Small Business Development Center
www.sba.gov/SBDC
. These centers offer free or low-cost business startup counseling and seminars. SCORE
www.score.org
offices also offer free counseling and business planning. Visit these sites to search for their centers/offices nearest to you. If you want to perform work-from-home for another company, be very careful of home-business scams. Do not send any money for information. To check the legitimacy of a home business opportunity, see the Better Business Bureau#146;s site,
www.bbb.org
, the Federal Trade Commission provides advice on avoiding scams,
www.ftc.gov
and see
www.fraud.org
for The National Fraud Information Center that offers updates on the latest frauds and scams. I have two books that might help as well, "The Self-Employed Woman's Guide to Launching a Home-Based Business," Crown Publishing Group, $14.95 and "The Self-Employed Woman#146;s Guide to Launching a Home-Based Business," Crown Publishing Group, $14.95. - Priscilla Huff in Sellersville, Pa.
Moms working from home can structure their businesses and their schedules around their children's and family's needs while still bringing in an income. There are many good work-at-home opportunities, but there are many that are more often scams than not. I suggest that you review our Tips for Avoiding Scams at HBWM.com to help you not fall victim to scams. You can save large amounts of time and money by defining your strengths, interests, skills and passions. I believe defining those and researching different types of opportunities that fit those unique traits will dramatically increase one's chances for true success in their home business. I offer a "Mom'sWorkAtHomeKit" that is helpful when trying to make a work at home decision. Please see my site for more details. - Lesley Spencer, Director,
www.HBWM.com
in Austin, TX
From Jodie: Everyone is interested in one way or the other about the possibilities and earning potential in starting a work-from-home business or situation. If you have children underfoot, it#146;s a lot harder than people tell you it is. Be sure you have adequate childcare available or things will not go as planned. It is quite stressful and can ruin home life, family time and even your self-esteem. Keep your day job until things get off of the ground and even then, it will require well-organized time to succeed. Your success should be seen in making money, feeling good about what it is you are doing and most of all, a balanced life. I am not saying it cannot be done. I am saying everyone in the family will be affected by it and you need to know up front about the heartache and hard work it takes. If you do not have a home computer, it is much harder to make decent money from home. If you are going to work for a "home business company," ask questions and check them out before signing a contract. Read books from the best well-known work at home experts, Paul and Sarah Edwards.
I also personally know Lesley Spencer and can guarantee she is above board with her "Mom'sWorkAtHomeKit"...it is what you need to make the final jump in working from home and I have implemented some of the suggestions in my own plans straight from the kit. Visit her site
www.HBWM.com
and check out the volumes of help she offers moms trying to make a life-altering decision. Another source that moms will love is
www.InternetBasedMoms.com
where my new friend web savvy Alice Seba offers plenty for beginners as well as seasoned work at home moms. She is one gal you must check out! Listen to
www.WAHMtalkradio.com
for incredible interviews with my pal, Kelly McCausey.
Can you help?
I have a 3-year-old daughter who is always upset because she thinks I do not want anything to do with her. I have been trying to open my business and work from home. Her mom works outside the home and I am responsible for her during the day. What should I do?What baby books do you recommend for dads-to-be?
Please share your tips and help other parents. Send them -- or other parenting questions -- to: Parent to Parent, 2464 Taylor Rd., Suite 131, Wildwood, MO 63040. Send e-mail through our
www.ParentToParent.com
Web site.Jodie Lynn is an internationally syndicated parenting/family columnist. Her latest paperback book is
Mommy-CEO, revised edition, Martin-Ola Press
. (It's not just for moms!) -- check out her new e-book, "Syndication Secrets" at
www.ParentToParent.com
for more details. We now have new Mommy, CEO merchandise and logo! copy;2004 Jodie Lynn. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:43:30Z
Exploring Working At Home
Staff
http://www.DrLaura.com/b/Exploring-Working-At-Home
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2010-05-07T08:43:29Z
2010-05-07T08:43:29Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Exploring Working At Home
Homebodies
By Cheryl Gochnauer
email:
Cheryl@homebodies.org
copy; 2000
As you might imagine, it's a rare day when I don't receive an e-mail regarding work-at-home prospects. Although stay-at-home parents are generally well-versed in stretching their dollars, sometimes it's helpful to examine options for generating extra cash while still focusing on family.
A cardinal rule when seeking work-at-home prospects - NEVER pay anybody to give you a job. If someone promises to send you a list of money-making strategies "for only $10!", RUN. All you'll get is a letter advising placing the same sort of ad YOU fell for, along with a disconnected contact number.
There are several legitimate companies, including respected firms like Mary Kay, and Discovery Toys, which require an initial investment to cover start-up costs. Be careful to realistically consider the potential buyers in your life and purchase only what you're sure you'll be able to sell. Otherwise, you'll end up with more than your share of great makeup, fun toys, snazzy kitchen utensils - and pressing inventory bills.
I've found the most promising work-at-home leads usually emerge through networking with people you already know personally (friends/family/neighbors), socially (pastors/teachers/fellow volunteers) and professionally (business clubs/organizations/past co-workers). Best place to start - your former employer.
Maybe your boss turned you down flat a couple of years ago, when you first offered to work from home. Even if you've already quit your job to become an at-home parent, consider putting together a proposal and asking again.
In case you hadn't noticed, we're in the midst of a cultural revolution. The proliferation of home office equipment has split the marketplace wide open, dramatically multiplying the number of companies which allow employees to telecommute. Your boss might surprise you with a change of heart, welcoming help from an already-trained employee.
Or try approaching different companies in your same field, linking up with a more family-friendly business. For instance, just because your former boss wouldn't hire you as a freelancer doesn't mean his competitors won't. Outsourcing is a profitable way of taking care of overflow work. Offer the skills needed, and you become a valuable commodity.
Having a speedy computer, second phone line, fax machine and Internet access place you in the running for many work-at-home jobs. Take time to determine your strengths, then start pitching yourself to companies that can use your expertise.
Don't forget to use the Web, exploring opportunities available online. To get you started, you might like to check out these websites for more info on working from home:
Work-at-Home Moms
Moms Network
Cheryl and the rest of her Homebuddies like hanging out at the Homebodies message boards, talking about kids, finances and the at-home lifestyle. Join the discussions by visiting
www.homebodies.org
, and clicking on "Forums".
Want to read more by Cheryl? Stop by her page at Homebodies
www.homebodies.org/cheryl.htm
where you can read her columns and get info on her at-home parenting books. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:43:29Z
One Minute to Develop Healthy Attitudes about Money
Staff
http://www.DrLaura.com/b/One-Minute-to-Develop-Healthy-Attitudes-about-Money
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2010-05-07T08:43:28Z
2010-05-07T08:43:28Z
Staff
2010-05-07T08:43:28Z
Whatever Happened To The Welcome Wagon?
Staff
http://www.DrLaura.com/b/Whatever-Happened-To-The-Welcome-Wagon
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2010-05-07T08:43:27Z
2010-05-07T08:43:27Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Whatever Happened To The Welcome Wagon?
By Debra Cohen
My mother once told me a story about a group of women in our hometown whoused to ring the bell of new homeowners to deliver a welcome package ofproducts and flyers from local merchants as a way of introducing newcomersto their community they were called the Welcome Wagon. When my husband andI moved into our first home 6 years ago, I was five months pregnant andworking 50 hours per week. I longed for someone to knock on my door andoffer to help me find the best dry cleaner, restaurants and electricians inmy neighborhood.
I was curious about what happened to the Welcome Wagon concept and realizedthat changes in our society precipitated its demise. For one, manyhouseholds are dual income and generally there isn't anyone home during thedaytime hours. I was also told, that many women who stayed at home duringthe day, were actually afraid of opening their door to a stranger. Andfinally, with our newfound distrust of unfamiliar mail and packages(especially here in NY) I have a feeling that most wouldn't even bring thepackage into their home.
However, the need for the Welcome Wagon still exists and an ideal way tofill that niche is through a referral service business. I've seen referralnetworks set up successfully in hundreds of different communities across theUS (and even internationally) because they satisfy a universal need. Newhomeowners and even those who have lived in their community for severalyears are always interested in finding the best service providers in theirarea. Whether looking for a seamstress, a home improvement contractor or atutor for your child, a personal referral from someone who has taken thetime to do the necessary research is valued more than an ad in the YellowPages.
Another appealing aspect to referral services is that they save time. Mosthomeowners are too busy handling the day-to-day aspects of work, family,bills, etc. to take on another time-consuming task. In order to feelconfident in hiring a service professional, homeowners need to verify theircredentials, check references and most importantly, feel satisfied withtheir personal integrity. A referral service not only takes on theseresponsibilities for homeowners but it can serve as a personal conciergeservice that assists in booking appointments and tracking customersatisfaction.
For those who are searching for a unique business to run from home referralservices have emerged as a popular home based business for a variety ofreasons:
They require low overhead. As opposed to a business where you needto stock and sell merchandise, referral services sell information. Theprimary expense associated with operating this type of business is inpromotion such as direct mail and advertising. Because a referral serviceoperates on a local basis, promotional campaign costs are minimal and bestof all; a great deal of business is generated through word of mouth.
A referral service can be customized to suit your interests. If youenjoy renovating your home or have experience in that area, you can create ahome improvement referral service. If your background is in education,create a home tutoring referral service. There is also a niche for partyplanning referral services where homeowners can find entertainers, caterers,wait staff, etc.
A referral service can be operated on a part time basis and, inlarge part, by telephone. If you're a stay at home parent, this is a veryattractive quality.
While the Welcome Wagon as we once knew it may no longer exist, the need forthe services it used to provide to homeowners in communities across thecountry is still in demand. A referral service is an ideal way to fill thatniche while reaping the benefits of a rewarding and profitable home basedbusiness.
Debra Cohen
is President of Home Remedies of NY, Inc.--a Homeowner ReferralNetwork (HRN). Ms. Cohen is the author of a business manual entitled The CompleteGuide To Owning And Operating A Successful Homeowner Referral Network. For more information about starting an HRN in your area, visit the HRN website at
www.homeownersreferral.com
.
Permission granted for use on DrLaura.com
Staff
2010-05-07T08:43:27Z
Safety Home Address
Staff
http://www.DrLaura.com/b/Safety-Home-Address
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2010-05-07T08:43:26Z
2010-05-07T08:43:26Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Safety Home Address
PVC address posts
Steve and Jeanie Bosman
www.safetyhomeaddress.com
Safety Home Address is a home-based business started by Steve and Jeanie Bosman. They make products for convenient address identification, which supports Emergency - 911 responders. Safety Home Address products encourage rural residents to "Sign-up For Safety" making 911 responses easier. If you called 911, could they find you?Their main product, "The Guide Post" is 30" tall, 2.5 " square PVC post. The address markers have 3" reflective white numbers on two sides facing traffic.
The American tribute address post adds stars and stripes and is called "Flag Post." As well as being an address post it is an icon expressing how the American flag, America and 911 responders have become so synonymous.
Staff
2010-05-07T08:43:26Z
Kits n' Kaboodle
Staff
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2010-05-07T08:43:26Z
2010-05-07T08:43:26Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Kits n' Kaboodle
Animal Herb Pillows
Amy Ryan
www.warmwhiskers.com
Kits n' Kaboodle was founded by Amy Ryan who made the decision to leave the corporate world after giving birth to her children. Warm Whiskers is the company's first product line. They are heatable stuffed animals filled with buckwheat and lavender. The original designs are sewn in China but filled and finished locally by Pride Industries, a facility employing people with disabilities in Auburn, California. Amy loves not only being at home with her kids, but also working with the employees of Pride, because the products they create make people feel good.
Staff
2010-05-07T08:43:26Z
Daddy's Tools of the Trade
Staff
http://www.DrLaura.com/b/Daddys-Tools-of-the-Trade
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2010-05-07T08:43:25Z
2010-05-07T08:43:25Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Daddy's Tools of the Trade
Baby Changing Tool Belt for Daddy
Leanne Stevenson
www.bestbabyshower.com
Bestbabyshower.com
is owned and operated by Leanne Stevenson, a work-at-home mom. The company was started in 1998 with the product, "Daddy's Tools of the Trade" There is always the dilemma of what to get daddy for a baby shower. Worry no more... Tools of the Trade diaper changing tool belt is the ideal gift which is practical, tasteful, and useful, yet will add that touch of humor.
Your new diaper changing tool belt comes stuffed with the following items: diapers, diaper cream, diaper wipes, disposable changing pad, diaper pins, hand sanitizer, cotton balls, cotton swabs goggles, nose clip and gloves There is even a bonus toy to distract the baby while Daddy is changing the diaper. All of these are conveniently located in one manly location. With this gift, Daddy will have NO excuse not to change the diapers!
Staff
2010-05-07T08:43:25Z
Doll's Fashions
Staff
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2010-05-07T08:43:25Z
2010-05-07T08:43:25Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Doll's Fashions
Doll Clothes Made From Your Kids' Outgrown Outfits
Maria Duarte
www.dollsfashions.com
Doll's Fashions was started by Maria Duarte who's been a professional seamstress for over twenty years. She specializes in handmade clothing to fit 18" dolls (such as the American Girl Dolls). You send her your favorite outfit and she'll make a dress for your doll from your favorite outfit. Her most popular outfits are private-school uniforms, Holy Communion dresses and Girl-Scout uniforms.
Can't bare growing out of that favorite dress? Don't worry, Maria will replicate that dress, and it will be preserved as doll clothes-forever!
Staff
2010-05-07T08:43:25Z
Cap n' Go
Staff
http://www.DrLaura.com/b/Cap-n-Go
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2010-05-07T08:43:24Z
2010-05-07T08:43:24Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Cap n' Go
Kid's Hats
Alicia Gray
www.capngo.com
Cap n' Go was founded by Alicia Gray. After her daughter was born, almost eight years ago, she desperately wanted to work at home. One fateful day, Alicia and her daughter were out doing errands. Her daughter was wearing a homemade hat. Everywhere they went people commented on the cute hat! From that, a business idea was born. She began making children's hats and selling them at local craft fairs. The response was tremendous. In 1996, pregnant with her second child, Alicia business suffered a setback when most of her house burned down and all inventory was lost. It took a year to recover from the devastation of the fire, but she pressed on and continued to create unique and original hats.
All of these hats are extremely functional and many of the styles are reversible, have snap-on earmuffs and interchangeable bows.
Staff
2010-05-07T08:43:24Z
Cuddle Baby
Staff
http://www.DrLaura.com/b/Cuddle-Baby
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2010-05-07T08:43:24Z
2010-05-07T08:43:24Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Cuddle Baby
Baby Diaper Covers
Rebecca Clark
www.cuddlebaby.com
Cuddle Baby began in 1997 by Rebecca and Michelle who wanted to stay at home with their children. All of the products are designed and manufactured at home. Cuddle Baby features custom nursing and breastfeeding clothing, diaper covers in hundreds of fabric selections, toys accessories and much more.
Staff
2010-05-07T08:43:24Z
Blissful Blankets
Staff
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2010-05-07T08:43:23Z
2010-05-07T08:43:23Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Blissful Blankets
for babies, children, and adults!
Camille
www.blissfulblankets.com
Blissful Blankets blends simple design with high-tech fibers to create blankets that are soft, durable and useful all year long. The blankets are good for camping, road trips, vegetating in front of the TV or sitting on the porch on a summer evening. Blissful blankets offers foot cozy blankets, throws, travel blankets and much more.
Staff
2010-05-07T08:43:23Z
Borman Designs
Staff
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2010-05-07T08:43:23Z
2010-05-07T08:43:23Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Borman Designs
Personalized Baby Towels With Hoods
Kelsi Borman
www.kelsibormandesigns.com
Kelsi Borman Designs began out of necessity in late spring of 2001. In looking over her budget, one of the many things she found was that quite a bit of money was being spent on baby gifts. Kelsi wanted to continue being able to give gifts, so she decided that the best alternative was to design and make hooded baby towels. Kelsi's friends then began asking her to make towels for them to give as gifts! What started as a way to save money was quickly turning into a profitable business. So, with the encouragement of her husband Dan, Kelsi Borman Designs was born. Kelsi loves designing and making monogrammed towels and other accessories because it gives her ample opportunity to be a stay-at-home mom. Kelsi Borman Designs is a creative and profitable at-home business.
Staff
2010-05-07T08:43:23Z
Greg's Custom Bunk Beds
Staff
http://www.DrLaura.com/b/Gregs-Custom-Bunk-Beds
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2010-05-07T08:43:22Z
2010-05-07T08:43:22Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Greg's Custom Bunk Beds
Gregory Gatons
www.gregscustombunkbedsandplaylofts.50megs.com
Greg's Custom Bunk Beds was born after Greg and his wife were looking for a bunk bed as their youngest daughter was quickly out growing her crib. They looked around and could not find a good quality bunk bed for a reasonable price. So they did what any good parent would do, build and design their own. Friends and family saw the bunk bed and said that Greg should sell them so, Greg's Custom Bunk Bed's and play Lofts was born.
Greg is a Navy veteran and protected our country's freedom during the Gulf War. Greg is a stay at home dad who works hard to support his family.
Staff
2010-05-07T08:43:22Z
Best Products Inc. - Fido Rido
Staff
http://www.DrLaura.com/b/Best-Products-Inc.---Fido-Rido
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2010-05-07T08:43:22Z
2010-05-07T08:43:22Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Best Products Inc. - Fido Rido
(dog seat for car)
Christine Best Wright
Best Products Inc.
877-709-2154
www.fidorido.com
The idea for the "Fido Rido" all began with a puppy who wanted to run around the car and look out the windows. The Fido Rido is a rectangular-shaped container made of durable plastic. A vinyl-covered foam block fills the container for "boosting" small pets to window level. A fleece cover wraps snugly around the container for easy cleaning. The Fido Rido is held in place with the car's seat belt. The pet is restrained by attaching nylon straps to a harness that comes with the Fido Rido.
Staff
2010-05-07T08:43:22Z
Baby Bee Incorporated
Staff
http://www.DrLaura.com/b/Baby-Bee-Incorporated
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2010-05-07T08:43:21Z
2010-05-07T08:43:21Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Baby Bee Incorporated
Beautiful Blankets
Lisa Barnes
www.babybeeinc.com
Lisa Barnes founded Baby Bee, Inc after a baby shower given for her daughter. She received some really unique and beautiful handmade flannel baby blankets from a friend. They were so incredibly soft and cozy and the fact that they were handmade made them even more special. Lisa was inspired to design her own blankets.
Baby Bee, Inc. donates a portion of the proceeds from the sale of each blanket and/or donates blankets to various charities benefiting children including the
Dr. Laura Schlessinger Foundation
.
Staff
2010-05-07T08:43:21Z
Support At-Home Businesses! Ideas for Your Own At-Home Businesses!
Staff
http://www.DrLaura.com/b/Support-At-Home-Businesses!--Ideas-for-Your-Own-At-Home-Businesses!
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2010-05-07T08:43:21Z
2010-05-07T08:43:21Z
Staff
2010-05-07T08:43:21Z
Musical Spanish - Publishing Music At Home
Staff
http://www.DrLaura.com/b/Musical-Spanish---Publishing-Music-At-Home
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2010-05-07T08:43:20Z
2010-05-07T08:43:20Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Musical Spanish
Publishing Music At Home
by Stacey Tipton
Musical Spanish is a project I've been working on for nearly 5 years. It all began with an idea I had one day while finishing up my M.A. in Latin American studies. It seemed so simple to find some songs and use them as the basis for a language teaching book and CD. Surely a publishing company would see the potential in such a project! The next few years turned into an exercise in tenacity, as one big company after another expressed enthusiasm in the project, only to find a reason not to commit in the end. I suppose it was ambitious to assume that I could overcome the hurdles of music licensing or the inherent aversion to new and risky products that most publishing companies have, but I knew the idea was good. So I kept sending out demo chapters and proposals.
After 3 years of rejection letters and near misses, I eventually found a small publishing house that was willing to publish the project, but we couldn't agree on the budget. The publisher suggested I consider applying for venture capital in order to fund the book and music development properly. Then it dawned on me: why should I go to the trouble of getting venture capital, only to allow this guy the control and majority of the profits for all of my hard work? I was fortunate enough to secure private funding from family members, and my little company was born.
During the past year the majority of my book and CD sales have come through the internet-a wonderful tool enabling me to reach customers all over the globe. Learning how to build the website was as easy as learning to use a word processing program. Being my own webmaster also allows me to make changes and additions regularly, keeping the website current and as attractive as possible. My website is a far cry from first site I created a year ago! Aside from good design and content, the most important ongoing job has been promotion. This includes finding as many sites as possible to link to my own site, getting listed in all of the major directories, and optimizing my web pages so that they rank at the top of a web search for anything related to Spanish or Spanish teaching tools. It has been a lot of hard work, but it has definitely paid off. I get nearly 30,000 unique visitors a month, and receive many emails each week from users who have enjoyed the site. This has helped sales and also the word of mouth campaign about my teaching program and my website.
The great thing about working at home is that you can set your own schedule, and you get to be your own boss. I love feeling that I am in control of my own destiny-if I work hard, I will make this business a success! A few years back when I was a struggling writer, I had lunch with a fellow aspiring writer who had written several fiction books but was afraid to submit them to publishers. He asked me "aren't you afraid of failing?" I said "No way! I'm not afraid of failure, because I am the one who decides when this thing has failed. And I'll never accept failure as an option." Well, working for yourself, you get a chance to really test that theory#133;.there are days when a consistent paycheck would seem like a Godsend. But since YOU are the one who decides just how hard you're willing to work, which options you are willing to pursue, how creative you are willing to be to help promote your business, success is up to you. When I look back on the 5 years I've spent working on Musical Spanish, the most important thing I have learned is that hard work, research, flexibility, and tenacity (with a little bit of stubbornness thrown in!) can overcome just about any obstacle.
Written by Stacey Tipton, author of Musical Spanish, learn through pop music! (The Musical Linguist, LC) Stacey has her own small business in Miami Beach, FL. She is a former teacher and holds an M.A. in Latin American Studies from Tulane University. Visit Musical Spanish online at
www.musicalspanish.com
. Permission Granted For Use On DrLaura.com.
Stacey Tipton
The Musical Linguist
mlinguist@aol.com
www.musicalspanish.com
Revolutionizing Language Learning!
Staff
2010-05-07T08:43:20Z
A Home-Based Career to Fit Your Style
Staff
http://www.DrLaura.com/b/A-Home-Based-Career-to-Fit-Your-Style
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- /9706.html
2010-05-07T08:43:18Z
2010-05-07T08:43:18Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>A Home-Based Career to Fit Your Style
Bijouterie Jewelry (a funky little divisions of Joe Mama Productions)
by Ann Diaz
A new pair of designer eyeglasses, and nothing fashionable to keep me from losing them... what's a girl to do? I remember seeing a bead store downtown, and decided to stop in that very day. The owner of 4th Street Bead in Loveland, CO, Debbie Dzuris was very helpful. I told her what I was looking for and that I had absolutely no experience with creating jewelry. From there I learned about different beads, tools, and techniques, right there in the store.
I've always had a love for art. I love to go to art shows, collect art, wear art, and surround myself with artistic things. But I've never really been able to draw or paint or create many artistic things. Learning about different beads provided me with the outlet that I needed. Beads themselves, you see, are works of art. The type that appeal to me are called "trade beads" which have been traded among different cultures for a century or more. By finding a style of beads that excited me, I was able to create my own works of art and create a business that I love. My "studio" is part of our family room, so I can design jewelry with my husband and son close at hand.
I received many compliments on that first eyeglass chain. With my entrepreneurial spirit, I could not just say "thank you" and be on my merry way. I had to make more and sell them. I started by sharing a table with a friend at a book fair - book readers tend to wear glasses and often like to wear them around their necks. Then, I brought some in to optical centers and sold them wholesale. Next, I checked into an artist's co-op store. I learned that they jury artists in - i.e., their board votes on your work and decides if you can become a participating artist. I was told they liked my work, and wanted to see more than just eyeglass chains. From there, I ventured into earrings, necklaces, bracelets, and anklets. My advice to budding artists/craftsperson entrepreneurs is to first find something that excites you. You might stumble upon interesting things in a variety of ways: craft stores, magazines, art fairs,... One great idea is to pick up catalogs that list classes at local colleges and recreation centers. By looking through the class offerings, you might find something that intrigues you (ie, faux painting, calligraphy...). And, not only will you have your idea, but you will also have a way to learn it! Don't expect to learn everything about the craft AND the business overnight.
Take classes, subscribe to craft magazines, talk to lots of people. Once you have found a niche (and a product that objective people - ie, not your friends and relatives) show genuine interest in, you will need to make decisions about how you want to sell you wares. Examine trade shows, selling on consignment, selling wholesale, and creating your own customer base and direct marketing to them. You'll soon find that when you get more people involved, the more it will cost you for that "middleman" service. At this point, if you haven't done so already, you will want to apply for your resale license. This will give you the ability to buy your supplies wholesale, saving you money on your hard costs. It will also keep you right with Uncle Sam, as you'll need to collect and pay taxes on what you sell. I always recommend a visit with your local Small Business Development Center, if there is one in your area (call the Chamber and ask). They will give you FREE advice and connect you with the right people to get your business going. They are government-funded, and their purpose is to make sure small business people have the resources they need to be successful. Make a list of questions you have about things like: legal, taxes, accounting, marketing, etc. This will help you avoid costly mistakes.
With thanks to Debbie Dzuris and others like her that gave of their time and talents to help me along, I would like to "pay it forward" with mentoring to aspiring work-at-home parents. You can reach me at
joemamapro@aol.com
. If I can answer your questions, I'll be happy to do so!
Permission granted for use on DrLaura.com
Staff
2010-05-07T08:43:18Z
Work At Home Business: College Funding and Financial Aid Counseling Practice
Staff
http://www.DrLaura.com/b/Work-At-Home-Business:-College-Funding-and-Financial-Aid-Counseling-Practice
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2010-05-07T08:43:16Z
2010-05-07T08:43:16Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Work At Home Business: College Funding and Financial Aid Counseling Practice
Lori A. Warren is on her way to making over $70,000 this year with her college funding and financial aid consulting practice. Her husband, Wayne, works full time for an office services company, but plans to retire in 2002. Lori#146;s life took a dramatic turn in 1999 when her mother died and Lori was involved in a head on car crash. Between 1999 and 2000 Lori thought that she would have to close her financial planning practice and seek a full-time job working for someone else just to pay her exorbitant medical bills. She was first approached about the business when her mother was dying. She put the material by her bedside to read later and each time she went to clean her bedroom she would pick up the material with the intention of throwing it away. Every time, a small voice would tell her to keep it. Finally in June 2000, Lori forced herself to read the material and it changed her life! Depending upon how often you want to work you could turn this into a full-time company from your own home or maybe only help a few students each year and have a supplemental income. You can help students reach their goal to find the right college and help them through the financial aid jungle.
Here are ten simple steps Lori took to launch her highly successful business#151;and you can too.
STEP ONE #150; Identify the value your business, service or product offers
Most parents don#146;t realize that 90% of financial aid comes from our tax dollars! Parents don#146;t get the aid they should and they lose aid because they don#146;t understand the rules, forms, or how much the school is really willing to give #145;their#146; child. As I said in my guest essay for October in the Dr. Laura Perspective Magazine, you must understand the rules and follow them to the letter or you will loose money your child is entitled to. Each year 97% of the parents of college bound students loose between $3,000 - $24,0000 in aid they could have qualified for. Parents invest an initial fee and annual renewal fees for my services. I help students get the most financial aid possible and help their parents pay as little out of their pocket as possible.
STEP TWO #150; If at first you don#146;t succeed, try again
I thought I had a brilliant idea when I bought a mailing list of all the juniors and seniors in my area. After mailing hundreds of postcard that offered a free report on how to beat the high cost of college I quickly discovered that this wasn#146;t working. It didn#146;t take me long to come up with a new plan-- holding free financial aid workshops for parents.
STEP THREE #150; Freebies and give-aways attract customers to your business
My free seminar is designed to teach parents what they really need to know about college financial aid. The workshops are held at local schools or nearby public libraries. My flyers ask participants to reserve their seats in advance. I contact them and confirm and I#146;ll add their name to my database. I also have local television stations and newspapers include the workshop in their community calendar. Usually 15 #150; 25 sets of parents come to each seminar. At the end of the seminar I collect evaluations from those parents wanting a free consultation. Typically, 100% of my attendees want to take advantage of this freebie. I have a 75 #150; 80% success rate with parents who actually keep their initial appointment. I charge $695 to work with them the first year. That#146;s $7,654 from one workshop a month if 11 people sign up. I usually run two workshops a month. Also, my parents refer their friends and relatives to me.
STEP FOUR #150; Look professional
You don#146;t need an office but you will need a computer (or access to one) but it doesn#146;t have to be top of the line. Business cards and letterhead are a must in creating a professional bussiness image parents and schools can trust.
STEP FIVE #150; Don't break the bank
There are several books you will need to purchase which will cost about $200.00. After reading the books you#146;ll need a presentation to show your parents. My biggest expense is sending mailers to my parents. I usually send out 500 #150; 600 invitations to each workshop. When I add the cost for paper, envelopes, mailing labels and postage it comes to roughly $220.00 per workshop. However, using email can cut down on time and money. You need to plan on spending from $1,550 - $2,500 to get started but you won#146;t have to have the money all at one time.
STEP SIX #150; Provide an easy to follow plan for your clients
I work one-on-one with parents and provide a College Planning Calendar and a Checklist that#146;s updated monthly so they know what#146;s been done and what to do next. It takes 12 months for a high school senior to get into college. During that time, I do the research, paperwork, and phone calls that are required to get each student the most financial aid possible. I offer reminders and advice on admissions, but it is up to the parents and the student to complete the admissions paperwork.
STEP SEVEN #150; Find a mentor
For people who want to start a financial aid company like mine you can contact me. However, for other types of businesses, there are successful business people willing to help you. When approaching a potential mentor let them know what your goals are and how much of their time you will need. This way they#146;ll know in advance if they can provide the help and support you#146;re looking for.
STEP EIGHT #150; Look for multiple streams of income
Writing a short book that offers benefits to your customer is a great way to build your business. Though you may not make a lot of money on the book, it#146;s a terrific marketing tool and may help you get publicity on local TV and radio shows. My first book was #147;How To Give Your Child a 4-Year College Education Without Going Broke!#148; My husband and I are working on a second book that's more detailed. This book will be a valuable resource for parents and financial aid advisors. It maps out a game plan of what parents and schools need to do for students from 12 through 19 years old.
STEP NINE #150; Make sure your 'at-home' business creates value for you and your family
We#146;re having a ball. My family takes a week long vacation 4-times a year. I only work the days I want and the hours that are convenient for us. My office is usually open Monday through Thursday and Friday is by appointment only. However, from May to September we are closed on Fridays. This way my family and my staff#146;s family can enjoy 3-day weekends all summer long. We plan to have my husband retire and work at home by spring of next year. My kids are happier now that mom and dad make it to all their activities. All in all, this business has brought us closer as a family. I would be remiss if I didn#146;t mention how fulfilling it is to watch my students attend the college they had their hearts set on. Moms and dads hug me with tears in their eyes because I#146;ve helped send their children to college.
STEP TEN #150; Help others in your community
As a way of giving back to my community, I do pro-bono work for our local CASA volunteers with the children who are in the foster care system. Most of them didn#146;t realize the government would pay their way to attend college. This might be the only way these kids can get off the welfare rolls. I go to sleep at night knowing that I change lives EVERYDAY!
Lori Warren is owner of Smith-Warren Financial Services. Her website is,
www.getcollegeaid.com
. Please feel free to contact her at:
mny_mtrs@yahoo.com
Permission granted for use on DrLaura.com
Staff
2010-05-07T08:43:16Z
The Work-at-Home Moms Lifestyle Quiz
Staff
http://www.DrLaura.com/b/The-Work-at-Home-Moms-Lifestyle-Quiz
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2010-05-07T08:43:15Z
2010-05-07T08:43:15Z
Staff
2010-05-07T08:43:15Z
The Millionaire Formula: A dollar a day. A minute at a time.
Staff
http://www.DrLaura.com/b/The-Millionaire-Formula:--A-dollar-a-day.--A-minute-at-a-time.
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2010-05-07T08:43:13Z
2010-05-07T08:43:13Z
Staff
2010-05-07T08:43:13Z
The Just. . . In case EMERGENCY I.D
Staff
http://www.DrLaura.com/b/The-Just.-.-.-In-case-EMERGENCY-I.D
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2010-05-07T08:43:13Z
2010-05-07T08:43:13Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The Just. . . #147;In case#148; EMERGENCY I.D
Working out of my home has been a part of my life for the past 25 years, starting when my daughters were ages two and five. I#146;m a cartoon illustrator, and I started out by writing and illustrating a little animated #147;Flip #145;n Giggle#148; picture book, What Pet Will I Get? After its publication I was actively involved in its marketing, but gradually slowed down to spend more quality time with my family. After a couple of years I started a little business, Madcap Creations where I created products that complemented my humorous cartoon style. I loved being my own boss, in complete control of my work, and I was excited by the challenges, but after nine years I decided to go the more conservative route and work freelance. I spent the next seven years taking on assignments from various companies #151; doing humorous illustrations for their lines of stationery, book marks, note pads, greeting cards and children#146;s magazines.
Then one day in 1997 my older daughter Jeana came to me with a story that changed my direction once again! Her boyfriend (now husband) had been baby-sitting his infant nephew when the baby fell, hitting his head. Concerned that the child might have a concussion, he searched frantically for the parents#146; emergency notes, but for several stressful minutes could find nothing. Finally he found a piece of paper wedged way in the bottom of the diaper bag containing the doctor#146;s name and number #151; so crumpled and worn it could barely be read.
This experience made it clear that there was a serious need for a more organized and reliable way to leave a child#146;s emergency information. Something, that in this hectic world, the parent wouldn#146;t have to think twice about #151;readily available not only at home, but in the car, on an outing, or with a sitter or family member- while staying completely intact. Because the name of my company, Madcap Creations, didn#146;t fit for such a serious product, I started a new company and named it Wee Five Designs. Jeana and I spent months doing research on the design, and making numerous, sometimes expensive changes here and there as we went along. We started out naming the product The All About Me Emergency I.D., but a year later changed it to its present name, the Just. . . #147;in case#148; Emergency I.D.
Upon deciding on the make-up of the final product, there were many things to consider. In order for it to be easily accessible, it needed to attach right onto a diaper bag, backpack, car seat, stroller, etc. #151; much like a luggage tag. We wanted it to be simple and affordable, since many parents would need them for more than one child -and we wanted it to be of top quality, so we chose the materials carefully from various wholesale manufacturers. To add to the convenience, we had the cards pre-printed with spaces for the most necessary emergency data, including the doctor, hospital, and emergency contact names and numbers, medication requirements, allergies, medical insurance information, the child#146;s blood type, and more. This way the parent could just fill in the blanks, eliminating any guesswork about what info#146; to write down. Then we thought of another note parents typically leave for sitters, an Authorization Form, to give consent for emergency treatment in the parents#146; absence; so we included this on the bottom of the cards#151; with a place for the child#146;s photo on the back. Once the cards were complete, we needed to come up with the packaging #151; another big hurdle, but with more research, my illustration background, and a great computer system we were soon ready with a prototype.
In developing a product, there#146;s a ton of research to be done: Is there a real need for the product? What#146;s the competition? How much money will be needed to get it off the ground? Is the product name already in use? How should it be marketed? - to name just a few. The first thing that we needed to find out was not only how parents felt about the Just . . .#148;in case#148; Emergency I.D., but the feedback from those in rescue-type jobs. So we developed survey sheets and, accompanied by a protoype, took them to over 100 parents, teachers, doctors, paramedics and firemen for their review.
The response was fantastic; giving us the inspiration and information we needed to pursue our commitment to the product. Paramedics stressed to us time and again how crucial it is for a child to have identification with him or her that#146;s easy to find - not only for identification and contact purposes, but to make emergency medical technicians aware of any allergies before administering medication. They also stressed how critical it is to know if the child has any preexisting medical problems in case he or she is already taking a medication that might complicate treatment. According to the survey results, our Just. . . #147;in case#148; Emergency I.D. was right on target.
Our next step was to get the word out. We hired a photographer and created a sell sheet with photos and a description of our product, developed a press kit, put up a website, got a toll free number, opened a merchant credit card account, and hired a public relations person to make phone calls to the editors of several parenting magazines. I followed up by sending them our press kit- accompanied by more follow-up calls. This gave us a terrific boost, as it resulted in several wonderful write-ups in some national parenting magazines which directed the readers to our website.
At first, orders were just trickling in, but once the write-up in BabyTalk magazine came out, the pace changed and the orders came flooding in! Thank goodness we were prepared with the different mail order material we would need - but what surprised me was the incredible amount of time and steps it takes to get the orders filled! If not for the help of a close friend and my family it would have been quite an overwhelming challenge. Now, months later the orders are still coming in, but we#146;re preparing to focus on other markets with a brand new brochure and a detailed marketing plan.
Just recently Jeana#146;s become a mom #151; making me a very happy stay-at-home working grandma! Looking back on my years as a mom working from my home I see so many advantages. It#146;s allowed me to be completely involved with my kids while pursuing the work that I love. If they needed to talk I was only a room away. If they were in sports, I could leave my work in a heartbeat to watch them play. If I needed to have conferences with their teachers there was never a problem #147;getting off work#148;, and when school was out I knew what they were up to because I was usually home to greet them. If I wasn#146;t, my mother would be, as she was just two minutes away. Last, but not least, I think it#146;s been good for my kids to see me pursuing my ambitions firsthand. I#146;ve always told them they can do anything they put their minds to, as long as they work hard and don#146;t give up. They know I mean it, because they#146;ve witnessed all the ups and downs that I#146;ve had to go through with my businesses #151; which leads me to another key player in my life as a work-at-home mom #151; my always supportive husband! Without his understanding, encouragement, and sincere interest in what I#146;m doing, many of my goals could not have been met.
As for my daughter, Jeana, since she#146;s had Caiden she#146;s chosen not to work outside the home. Instead, she works with me on this product as much as she can, while not missing a beat with her son. I#146;m not only grateful I could be home for my own children while they were growing up, but now I can be here for my precious grandson, and any future grandchildren, as well.
To see the Just. . . #147;in case#148; EMERGENCY I.D. visit our website at
www.weefive.com
. A portion of the proceeds from the sale of each I.D. kit will go to the
Dr. Laura Foundation
to help abused and neglected children.Permission granted for use on DrLaura.com
Staff
2010-05-07T08:43:13Z
The Gifted Baby
Staff
http://www.DrLaura.com/b/The-Gifted-Baby
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2010-05-07T08:43:12Z
2010-05-07T08:43:12Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The Gifted Baby
By Lou Eftimoff
One of my favorite sayings is #147;It#146;s a dog eat dog world and I'm wearing milkbone underwear#148;. I have often felt that way, trying to be a mother, wife, entrepreneur, dog owner, friend, sister, businesswoman #150; you name it. But the more challenges I face, the more gumption I seem to find!
The Gifted Baby website,
thegiftedbaby.com
opened in April, 2001. The concept however,started on a cocktail napkin a few months after my first child was born in October of 1999. The main principle is practical baskets.
The idea, like so many other great ideas, came from a necessity in my life. Home from the hospital, I was excited to begin my new life as a #147;mom#148;. I had done my research and felt prepared to take care of this child. But I soon panicked, realizing I was without some very important baby items. I had received many wonderful gifts from my shower, but none of the daily tools that I needed now.
I rushed to the store and filled the cart with bottles, nipples, onesies, burp cloths, baby wash, pacifiers, pajamas, crib pad, clippers and socks. I wondered why the baby baskets that I had received didn't contain many of these items. They only had a few #147;no-name#148; things and I didn't have much use for another picture frame and teddy bear. Plus I couldn't fit yet another useless basket on top of my refrigerator.
Thus, The Gifted Baby was created. Name brand products in functional containers. My #147;baby baskets#148; are actually in sensible containers, such as Rubbermaid bowls, IRIS plastic mesh baskets, storage boxes, Samsonite diaper bags and a Century baby bathtub. There are 14 theme gifts with all the necessities parents and babies need Plus, all the products are from trusted makers such as Gerber, Playtex, The First Years, Sassy, Safety 1stand more.
The idea may sound simple, but organizing the company and creating the website was much more difficult. I think the hardest part was trying to do everything during my kids' naptime and after 9:00pm. My advice to those wanting to start a business is not to give into frustration, especially when time and energy are the cause. It will happen, just not over night. After all it took nine months to make a baby!
Eventually, as your kids get older and that late night feeding is gone, you'll see the light at the end of the tunnel. Time spent with my children is priceless and has given me so many memories.
The biggest adjustment on my family, as many stay-at-home parents can relate, was the change in income. My husband has taken on the burden of all of our expenses. But we've found ways to cut back.
At this point, marketing and promoting my site is my main goal. I was able to use my savings to start my business but made the mistake of leaving very little money for #147;advertising#148;. I'm doing my best to join organizations, attend luncheons, do #147;craft fairs#148;, fax flyers, mail letters, email friends and relatives, and list my site on various search engines. I've had the fortune to #147;piggyback#148; onto my husbands work phone line, answering machine, fax, and copier. He also works out of the house so that has been a great help with my business expenses.
Although I was thrilled to become a stay-at-home mom, I knew I would have to adapt. I thought I was giving up my career and secluding myself in the house. As I look at my life now, I#146;ve simply chosen a different career. And I#146;m far from becoming a hermit. In fact, I enjoy finding new things to do outside my home, whether it#146;s work related or not. My previous work experience in public relations, special events, and fundraising has helped give me the knowledge to plunge forward with this company. But the truth is, I had never even created a basket before! Who says you can't teach an old dog new tricks?
Lou Eftimoff runs the Gifted Baby right from her house and is a mother of two, and they're trying for her third. Her website is
www.thegiftedbaby.com
Permission Granted For Use On DrLaura.com.
Staff
2010-05-07T08:43:12Z
What Does It Mean To Be A One Minute Millionaire?
Staff
http://www.DrLaura.com/b/What-Does-It-Mean-To-Be-A-One-Minute-Millionaire
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2010-05-07T08:43:11Z
2010-05-07T08:43:11Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>What does it mean to be a One Minute Millionaire?
One minute. Sixty seconds. You can accomplish an enormous amount in a minute#151;even become a millionaire. There are several special types of millionaire minutes#133;
The Millionaire Decision.
Everywhere you look, growing numbers of people are enjoying incredible banquets of prosperity#151;while most of the rest settle for the crumbs that fall from the table. The journey to financial freedom starts the MINUTE you decide that you were destined for prosperity not scarcity#151;for abundance not lack. Isn#146;t there a part of you that has always known this? Can you see yourself living a bounteous life#151;a life of #147;more than enough?#148;
It only takes a MINUTE to decide. Decide now. There, doesn#146;t that feel better?
The Millionaire Pattern.
How many times will you spend money today? Three? Four? Five times? Rich people look at these money transactions differently than poor people. Millionaires have a special pattern#151;a unique way they spend money. During each money transaction, they invest an extra minute. It is this extra minute that makes them rich. That#146;s why we call it the Millionaire Minute. Would you invest an extra minute during each of your money transactions today if you knew it could make you a millionaire?
The Millionaire Technique.
The entire process of becoming a millionaire can be broken down into bite-sized, one-minute techniques. In our new book, we will teach you over a hundred of them. Yes, you can become a millionaire one minute at a time.
The Millionaire Moment
There is a moment in every millionaire#146;s career when everything hangs in the balance#151;when the temptation exists to turn back. For many, this moment occurs after a devastating defeat or extraordinary failure. Will you be ready for your millionaire moment?
When it happens, take a minute. Draw a deep break. Make another step forward.
The Millionaire Threshold.
All great contests come down to the final minute#151;the last step you take as you cross the finish line#151;the final dollar that puts you over the top.
Won#146;t that minute be exciting?
Mr. Allen#146;s wealth building techniques can be done from the comfort and privacy of your home. In this special new monthly column, he will introduce developing the most critical element, the millionaire mindset, along with specific how-to#146;s so you can stay at home while you generate cash and build a lifetime of wealth for you and your family.
ROBERT G. ALLEN has taught wealth-building techniques to tens of thousands worldwide. Thousands of millionaires, representing billions in wealth, attribute their success to his teachings. A popular guest on radio and television shows including
Larry King Live
and
Good Morning America,
he was also featured in The
Wall Street Journal,
Barron#146;s, Parade, People,
and
Reader#146;s Digest.
He is the bestselling author of
Nothing Down, Creating Wealth, Multiple Streams of Income, and Multiple Streams of Internet Income.
With Mark Victor Hansen, author of the
Chicken Soup for the Soul series
, he is co-authoring
One Minute Millionaire
, scheduled for publication September 2002.
Contact Robert G. Allen at
boballen@robertallen.com
or visit his website at
www.robertallen.com
Permission granted for this excerpt from the forthcoming blockbuster, The One Minute Millionaire with Mark Victor Hansen, for use on DrLaura.com.
Staff
2010-05-07T08:43:11Z
The Loneliness of the Home-based Business Person
Staff
http://www.DrLaura.com/b/The-Loneliness-of-the-Home-based-Business-Person
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2010-05-07T08:43:09Z
2010-05-07T08:43:09Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The Loneliness of the Home-based Business Person
If you are in business for yourself and working from home, you are likely to get lonely sometimes. You have no office cohorts, no company cafeteria, no water-cooler or lunchroom to hang out in and chat with folks to ease a stressful day. The evil temptations arise then: somehow the refrigerator door opens of its own accord and ice cream jumps out into your bowl as if by magic. The television or radio clicks on (by itself) and that talk show is just so interesting today, and look! It#146;s about people in home-based businesses, too, so you convince yourself it#146;s work-related. Or you get lost in research, i.e., surfing the web#133;ahhh, and where did the day go? I#146;ve been so busy! (How come I didn#146;t make any money?)
The answer to this problem is to join a networking group. Otherwise known as #147;relationship marketing#148;, networking at its best is fun, meeting good friends over a good meal and referring business to each other wherever possible. It is a support group of like-minded business people who cheer each other on to ever-greater successes. When everyone in the group is focused on finding referrals for everyone else in the group, the result is lots of business for everyone! And when you know you#146;re going to have your networking get-together sometime soon, it#146;s easier to stay focused on your work.
I#146;ve been a member of a networking group for seventeen years. (It#146;s very funny when I#146;m at a meeting and mention this fact#151;someone always comes over to me, wide-eyed and asks, #147;So is it working for you?#148; Duh.)
The simple fact is networking works if you work it. You can#146;t just go to one meeting every other month, give three people your business card, and wait for the phone to ring. If you#146;re in business for yourself, you have to make the phone ring in other people#146;s offices. The best way to make a networking group work for you is to remember these three simple principles:
Visibility: You#146;ve got to make a commitment of time and energy#151;pick a group, a regular meeting schedule, and show up consistently. People begin to develop trust in you when you are a regular attendee of a meeting. It takes some time for this to happen, so don#146;t quit before you#146;ve given it a full year of consistent effort. When people just show up a few times and then stop coming, I refer to them as #147;smash grabbers#148; like the burglars who smash a window, grab all they can in a few short minutes, and then disappear. I want to do business with people I#146;m going to see again next Tuesday.
Credibility: Do a good job, honestly and with integrity. Be professional, always return phone calls, be on time, keep your word. If you can, join a committee, work on the board of directors, become an officer. That will increase your visibility and at the same time people will see you are a contributor to the success of the organization (not only am I going to see you next Tuesday, but I#146;m going to see you being a
leader
#151;bigtime credibility.) Look for the opportunity to refer business to as many other people in the group as possible. Call people and ask them what kind of clients are they looking for? What goes around comes around#151;if someone were referring a lot of business your way, wouldn#146;t you be on the lookout to return the favor as soon as possible?
Likeability: People do business with people they like. Not everyone in every group is going to be your best friend, but you can reach out, shake someone#146;s hand, and smile. Remember this is your opportunity to greet old friends and meet new ones. The temptation will be strong to find a few buddies and sit with them every meeting. Don#146;t do it! Pretend you are the hostess of the meeting and welcome the newcomer into your group. Do some positive affirmations and talk yourself up into good, friendly energy. Leave your complaints at home. Then I#146;ll look forward to seeing you on Tuesday!
If you follow these instructions, you#146;ll have so many new friendships, clients, and referrals, you won#146;t remember what loneliness was like. And there#146;s a side benefit#151;you#146;ll make a lot of money, too. Just remember it#146;s not net-sit, it#146;s not net-eat#151;it#146;s net-
work
!
So, what are you doing next Tuesday?
Chellie Campbell is the author of #147;The Wealthy Spirit: Daily Affirmations for Financial Stress Reduction". She created and teaches the Financial Stress Reductionreg; Workshops on which her book is based in the Los Angeles area and gives programs throughout the country. Her free e-newsletter is available at
www.thewealthyspirit.com
. Permission granted for use on Dr.Laura.com.
Staff
2010-05-07T08:43:09Z
Homepublishing Made Easy
Staff
http://www.DrLaura.com/b/Homepublishing-Made-Easy
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2010-05-07T08:43:08Z
2010-05-07T08:43:08Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Homepublishing Made Easy
By Tom Kelly Dodd
Necessity is the mother of invention and the need to eat was our necessity.
With our last few dollars, no experience, and no equipment my husband and I began a publishing business, TableTop Tidbits News. That was seven years ago. Today our paper is in six cities, the papers content is generic and can work in any town.
Now we want to expand and help others do the same. After a corporate disaster, my husband took off on a cross-country bicycle trip. He came home with the idea that we could make money by publishing a paper for restaurants.
Neither of us had any journalism, advertising, or publishing know how. We definitely needed to find a business that did not require capital to start. We did some cut and paste and developed a prototype of our paper. We then took the prototype around and got support from the restaurants. We were off.
At first it was a lot of work, selling ads, writing stories, getting cartoons and trivia. The longer we did it the easier it became. Today we have professional writers helping and advertisers are calling us. We even have a waiting list for ad spaces. Best of all we have a good deal of free time as well. Tom and I are certain that by syndicating the paper it will be a perfect stay-at-home business for parents. When the kids are in school a Mom or dad can put their education, computer and personal skills into a career that generates substantial supplemental income. If Mom and dad want to make a team of it, Table Top Tidbits News can be a family's entire income and all done from home.
The paper is successfully syndicated in two states, Price, Utah and Colorado Springs, Colorado. The local publishers pay a fee for special software, training, printing and the exclusive territory. The money from the ads they sell is theirs to keep.
When we were raising our three children, I was lucky enough to be a stay-at-home Mom. It saddens me to see so many of our little ones being raised by day care centers today. Hopefully Table Top will be an avenue for more Moms and/or Dads to spend more time with their children.
If this sounds like something that would appeal to Dr. Laura listener and they would like to know the nitty gritty details they should look at our website
www.tabletoptidbitsandnews.com
or e-mail us at
tabletop@gj.net
.
We hope to have several more local publishers going this year.
Tom Kelly Dodd, Loma, Colorado
Staff
2010-05-07T08:43:08Z
Work-At-Home Sales: The New Contact Sport
Staff
http://www.DrLaura.com/b/Work-At-Home-Sales:-The-New-Contact-Sport
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2010-05-07T08:43:07Z
2010-05-07T08:43:07Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>WORK-AT-HOME SALES:
THE NEW CONTACT SPORT
By Cheryl Gochnauer
It's fundraising time at my 8th grader's school. Competition is fierce forbuyers of magazine subscriptions, which translate into prizes for the kids.Heaven help any adult with a checkbook! Fortunately, the yearly promotiononly lasts a couple of weeks, then it'll be safe to sit on our front porchesagain.
Just as teens are driven to achieve with their fundraising programs, parentswith in-home businesses are motivated to succeed. Without that income, manyat-home parents would have to go back to work.
It's no secret that the bulk of work-at-home opportunities involve selling.Cosmetics, children's toys, kitchen gadgets, household cleaners - theconscientious work-at-home parent has a wide variety of legitimate productsto pitch. The wrinkle is in finding prospective customers in a legitimateway.
"One of the moms from my son's preschool called to set up a play date at herhouse," says Linda. "I've been struggling to make new friends, and wasfeeling so isolated. I was looking forward to visiting and talking withher.
"In between conversation about the kids, she began telling me about thebusiness she and her husband started a couple of months ago - they offerfinancial services - it's a big company - etc., etc., etc.
"So the real reason for the visit wasn't the play date, I guess," Lindafrowned. "I don't even have any money to invest!"
Linda ended up disappointed, and I suspect the other woman was, too.
Presentation is everything, and deceit will kill the deal every time. Sowhat are some steps work-at-home salespeople can take to keep theirpotential customers happy?
Don't disguise a sales pitch as a social event.
Choose appropriate settings. For instance, most people attend church toworship, not shop.
Know your customer. Financially-challenged at-home moms should not betrying to sell expensive gadgets to other financially-challenged at-homemoms.
Make your presentation as low-key as possible, allowing people tocontact you if they're interested. No response means no. Following up isoverrated, and often resented.
Support other work-at-home parents by occasionally purchasing theirproducts or services.
Resist turning every conversation into a sales pitch. "Did Johnny leavehis backpack at your house?" "Yes, he did, right here next to my catalogs.I'll just slip one into his backpack and drop it by personally. Is 3 p.m.good for you?"
Don't spam in cyberspace or in person. Today, I've received 15 emails,2 phone calls, 6 pieces of mail and 1 knock at the door - all from people Idon't know, pitching me products I never asked for. Can you guess howlikely I am to buy their stuff?
Once a prospect agrees to hear your presentation, value their time. Forexample, Debi was too rushed to listen to a salesperson on the phone, so sheasked him to email the info. He did, then called to make sure she hadreceived the email and to explain it. Click!
Don't ask questions with an ulterior motive. Build relationships, notdatabases.
Only represent products you enjoy yourself. That way, you're sharing ablessing, not simply selling something. When you encounter customers whoenjoy the product, too, it's a win-win situation.
(Comments? Email
Cheryl@homebodies.org
. Or visit her website at
www.homebodies.org
where you can read a sample chapter of her book, "So YouWant to Be a Stay-at-Home Mom" (InterVarsity Press). Copyright2001 Homebodies.Org, LLC. Permission granted for use on DrLaura.com.)
Staff
2010-05-07T08:43:07Z
A Beautiful Way to Make a Living
Staff
http://www.DrLaura.com/b/A-Beautiful-Way-to-Make-a-Living
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2010-05-07T08:43:06Z
2010-05-07T08:43:06Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>A Beautiful Way to Make a Living
By Angela Corbell
I'm thrilled to let you know about the opportunity I discovered that hasallowed me to FINALLY be a stay-at-home mom!
When I had my second daughter last year, I was determined to find a way tobe home with my children. I searched the internet for months and talked toeveryone I could find! I knew there had to be a way to work from home andmake money. What I found was so much more! I have found a tremendousopportunity for one of the finest companies in the United States. I'm soproud to represent them!
Southern Living at HOME is a new division of the Southern ProgressCorporation. They are well known for Southern Living magazine, CookingLight, Oxmoor House Publishing and Coastal Living magazine. For the past 9years they have been working to create a company that would allow people todecorate their homes, kitchens and garden/yards, so they would look like thebeautiful pictures in Southern Living magazine. They decided to create a"home party plan" so women could meet in homes and visit with one another.It would be a warm and inviting atmosphere, rather than a store-front or website. They began business in January of this year and are already thefastest growing Direct Sales organization in the United States. Thewonderful thing about Southern Living at HOME is that they represent all thewonderful values and traditions that are important in my family. I love mynew job and would love to share this fabulous opportunity with others. Weneed consultants nationwide! Please feel free to contact me at 512-863-7529or e-mail me:
atHomeAngela@msn.com
Angela Corbell
Southern Living at HOMENew home-based business backed by Southern Living Magazine
Dr. Laura Schlessinger and DrLaura.com does not assume responsibility for advice given. All advice should be weighed against your own abilities and circumstances and applied accordingly. It is up to the reader to determine if advice is safe and suitable for their own situation.
Staff
2010-05-07T08:43:06Z
iHomeSchool.tv
Staff
http://www.DrLaura.com/b/iHomeSchool.tv
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2010-05-07T08:43:04Z
2010-05-07T08:43:04Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>iHomeSchool.tv
By Fasi Filiaga
I wanted to let you know about a home school project that has turned into a home-based business called iHomeSchool.
The failures of Public schools and even for that matter, Private schools, brought some serious in-depth soul searching, for my wife and , I about our children's education. So, I'm going to begin by addressing the issue of education from my personal perspective.
The Issue
I am the product of Public schools. My views on education and the predominant views that I see from children attending Public schools today are on different ends of the spectrum. When I attended school in the 1970's, my first concern was getting an education and receiving good grades so that I could attend the college of my choice. In return, I believe that the school I attended wanted the same and therefore curriculum and activities where supportive. Today, I see and experience something completely different. Kids go to school, in my opinion, to "socialize". (This issue of socialization, by the way, is the major objection that I get when I talk about Home Schooling - and it is by far overrated). It also seems that Public schools center education on politically correct issues and ideologies - a "feel good" policy (this indoctrinates them with values completely opposite the traditional Judeo-Christian values that I hold dear) - rather than offering an education that gives children basic reading, writing, and math skills.
The Challenge
Here was my dilemma. Public schools offered limited educational value and Private schools offered much of the same but were also cost prohibitive (I do realize that there are many exceptions to the rule and Private schools offer good alternatives). My wife and I had been discussing Public vs. Private schools for over a year. When I mentioned home schooling it brought up other challenges: 1) my wife did not feel that she had the skills and resources to adequately home school, and 2) I felt that I had the ability to home school, but I am the sole income earner for our family. Nevertheless, our conclusion was that Home Schooling would be the best solution for our Children.
The Solution
So, rather than dwell on the negative, I started a project called iHomeSchool. I have been working in an industry that provides training to the corporate world and this industry has been using interactive technologies to deliver classes on the Internet since 1997. (Granted, the technology improves as rapidly as most computer technology and as a result, costs have come down substantially.) With the above in mind, I asked myself, "Why can't I put together a product that brings an alternative educational resource to parents that have the same challenges as I"? Well, after about six months of asking questions, developing relationships and partnerships I developed a viable solution.
iHomeSchool provides to parents four specific solutions all related to home schooling. It offers all the tools, skills, and resources parents need to home school and they include: 1) an online Virtual Private School, 2) Tutoring Services, 3) a Do-it-Yourself program, and 4) an iHS Learning Center for groups and large families (this particular solution can also be a nice home based business as well). Parents are intimately involved in their child's education; iHomeSchool provides K-12 curriculum and course lessons and the parents provide moral and religious teachings.
In addition to the K-12 home school solutions, I also wanted to address post-secondary education and college planning. For that purpose, I've teamed up with a Broker from Dreher Associates, Inc., an Investment Securities Firm out of the Chicago Illinois area. Five percent (5%) of a students tuition (for iHomeSchool's first two programs only) will be set aside for enrolled students and controlled by each students' parents using Education IRA's and State 529 programs.
In Summary
I have to admit that this project was and continues to be a bigger undertaking than I had first envisioned, however, the nice part of this whole project is that it is allowing me to resign from my job to educate my own children and to work from home. When you get a chance, please view my Website at
www.ihomeschool.tv
Fasi Filiaga
www.ihomeschool.tv
(877)256-6914 ext. 258
Permission granted for use on DrLaura.com
Staff
2010-05-07T08:43:04Z
Get The Legal Edge Working At Home
Staff
http://www.DrLaura.com/b/Get-The-Legal-Edge-Working-At-Home
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2010-05-07T08:43:03Z
2010-05-07T08:43:03Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Get The Legal Edge Working At Home
By Jill Garcia
Moms, Dads want to stay at home? Here is my formula.
Get The Legal Edge Working At Home It too was my dream to stay at home with my daughter. I tried operating adaycare but WOW not my thing. I was at home but there was no real time forjust me, and my daughter. So I began looking around for a job that wouldallow me to make ends meet and keep my priorities of being a 110% Momfufilled! An old family friend came out of the woodwork and introduced me toa business that allows me to work around my little bunchkins hours. Mybusiness has expanded into the US from Canada and soon our company will bemoving into Britain as well. This is a sales job but it is the easiest thingI have ever done. No Kidding!
I help Middle Income North Americans protect their legal rights. Thataccounts for 80% of us living in North America. The other 20%, is 10% thatcan afford to have a lawyer on retainer. The other 10% have access to legalaid. That leaves the rest of us too timid to contact a lawyer, knowing thatwe will have to pay them in excess, of $150 - 200/hour. So, we usuallyignore the problem or try to handle the situation personally. We want tobelieve that Equal Justice under the Law is a reality. Well, now it is withPre-Paid Legal Services Inc. For a small monthly fee you have unlimitedaccess to the provider attourney in your state or province. That includes aWill and Power of Attourney, plus many other benefits (too long to list themall) at no additional- charge. It is a no brainer that most of us need thiskind of protection. So far in this business, I have been making a niceliving just by contacting my friends, family, neighbours and small businessowners all in my backyard. I get paid three years advance commission andbonuses here and there so, Prepaid Legal is my perfect Home Based Business.
Prepaid Legal began in 1972 and started trading on the NASDAQ shortly thereafter. PPL is now the 33rd fastest growing company on the NYSE (PPD-US). Weare growing by leaps, and bounds, now is the time to get in. People aresaying that this is a Trillion-dollar Industry. The figures and charts speakfor themselves. We live in a litigious society but the majority of us do nothave the money or means to protect our rights. All that has changed now. Iam enjoying the growth of my daughter and the growth of my business with thiscompany. I enjoy incredible compensation just by simply letting people knowthat this service exsists. Picture this demand, only 1 in 10 people knowabout Pre-Paid Legal services. 52% of all households need legal protectionright now and only 10% of society can afford the alternative to a Pre-PaidLegal membership. So what does that tell you? The product is in demand.
Today 80% of Europeans enjoy some form of a Pre-Paid Legal membership. NorthAmerica now has 1.5 million families enrolled and the demand for it increaseseveryday. I saw the opportunity to make a living while being a stay-at-homeMom so I grabbed it, and now I would like to share it with you.
Everyday that I can help another person protect their legal rights is a goodday. They get the help they need at a reasonable price. I get to spend theimportant years with my daughter, and I am paid more money selling onemembership than if I were to go out and get a J.O.B. (Just over broke). Theopportunity is limitless and the potential for my daughter is now limitlessbecause she gets her Mom full time! I can only hope that this letter mayhelp someone that is in the same position that I was in One Year ago.
If you would like information on how you too could benefit please e-mail me or visit my site
www.prepaidlegal.com/go/jillgarcia
, or email me at
jgarcia@canada.com
.
Permission granted for use on DrLaura.com
Staff
2010-05-07T08:43:03Z
The Gifted Work-At-Home Parent
Staff
http://www.DrLaura.com/b/The-Gifted-Work-At-Home-Parent
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2010-05-07T08:43:02Z
2010-05-07T08:43:02Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>THE GIFTED WORK-AT-HOME PARENT
By Cheryl Gochnauer
Every week, I receive emails from parents who want to trade in their 8 to 5jobs for work-at-home opportunities. I continually hear this phrase: "Idon't really know what I want to do - but I know it's not sales!"
That probably disappoints a lot of companies seeking trainees who will jointhem in marketing everything from software to cooking supplies. But I'mhappy to hear these prospective work-at-home parents whittling down theirprospects. After all, it's no good to jump into something, then jump rightback out again when you realize it's not for you.
If I could ask one question of everyone who wonders what they should do, itwould be, "What is your gift?" Everybody has a gift. Some gifts are moreobvious than others, but we've all got at least one. The key to choosing asuccessful at-home business is matching your gift - including sales, ifthat's your specialty - with your endeavor.
For instance, though my ministry revolves around parenting, I'd last about 3hours as a daycare provider. I've always been great at spelling, grammarand telling stories, however - all natural assets for a writer. Someone whoknows me well is more likely to recommend me as a freelancer than as ababysitter.
Not sure what your gift is? Often other people spot our strengths longbefore we see them in ourselves. Sit down with a friend, your spouse, yourparents - anyone who has known you for a long time; someone you can trust tobe truthful with you. Ask what gifts they see in you; things you're goodat, areas where you excel.
As you listen to their answers, mentally test their observations againstwhat you know about yourself. When the comments ring true, write them down.This is a solid lead. Now concentrate your search on jobs that complimentyour personality and giftedness.
Depending upon the opportunities available in your area, you may or may notbe able to find that perfect match. But having an idea of where yourstrengths - and weaknesses - lie will help you in your search.
(Comments? Email
Cheryl@homebodies.org
. Also stop by
www.homebodies.org
. Her book, "
So You Want to Be a Stay-at-Home Mom
," isavailable through
Dr. Laura#146;s Reading Corner
. Copyright2001 Homebodies.Org, LLC. Permission granted for use on DrLaura.com.)
Staff
2010-05-07T08:43:02Z
Live in So. California? Looking For That Perfect Part-time Job? Here's An Idea
Staff
http://www.DrLaura.com/b/Live-in-So.-California--Looking-For-That-Perfect-Part-time-Job--Heres-An-Idea
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2010-05-07T08:42:59Z
2010-05-07T08:42:59Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Live in So. California? Looking For That Perfect Part-time Job? Here's An Idea.
www.ExtraEyes.net
Dr. Laura,
I quit my #147;job#148; last December and am finally home for my kids. I started my business from scratch (and a lot of #147;scratching#148; along the way) about two years ago, sowing the seeds that would turn it into a way for me to #147;come home#148;. I still go out into the field, but I can make my own schedule and still be home when the kids get home from school. The response to the service my company provides has been terrific. I believe that the Lord has blessed my endeavors, as new clients continue to contact me. My business is:
www.ExtraEyes.net
I send #147;secret shoppers#148; into stores, restaurants and other businesses to evaluate customer service, product quality and other key focus points. I have a variety of clients from Ventura County down to the California/Baja border and I need help!
I NEED PART TIME SHOPPERS! This job is terrific for your listeners because they can work as much or as little as THEY CHOOSE. They can take their kids with them to the shops AND they get paid to do so.
I would appreciate so much your telling your listeners about this great opportunity.
God bless you and the work you do.
Suzette
www.ExtraEyes.net
Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:42:59Z
Flamingo World
Staff
http://www.DrLaura.com/b/Flamingo-World
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2010-05-07T08:42:59Z
2010-05-07T08:42:59Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Flamingo World
Connie Berg made a million dollars last year with her website,
Flamingoworld.com
. Her husband manages a bakery part-time and they have three kids. A 20 year-old stepson, a 13 year old daughter and a son, 6. Her interview for stay-at-home parents is both inspirational and informative. Connie Berg is living proof that you can get started with next to nothing. In her case she was depressed and hopeless when she stumbled across a goldmine on the Internet.
As a stay at home mom what inspired you to start your own home business?
CONNIE BERG: Our house burned down Mother#146;s Day, 1997. The day of the fire my husband was away visiting his 16 year old son at a drug rehabilitation treatment center. Meanwhile, my daughter was spending the night at her friend#146;s house and my son and I were home alone. After the fire, it was a very stressful time for us, my son was very clingy and I was seeing a doctor for depression. I started using my computer to search for jokes, to cheer myself up and to help me manage my stress. I had a program that came with my computer called Front Page Express so I used this to teach myself to make my own web page for my jokes and started sharing it with friends. I quickly discovered you could shop on-line and there were ads saying you can make money on the Internet. KB Kids was the first company that said "sign up for our affiliate program" #151;so I added their link to my web page of jokes. Here#146;s how it works, if people bought something on my website I would get a 10% commission. But there were stores that offered ten bucks worth of free stuff for first time buyers so this attracted my friends and relatives to my web site. It was unbelievable#151;the UPS man was coming to my house everyday delivering free stuff. Once my friends and relatives started shopping on my web site, it went really quickly from a joke page to a shopping website#151; I was having fun trying to see how much stuff I could get without spending money. So basically I started the business by accident and that was back in October, 1998. I love to shop, it#146;s a hobby of mine so I just kept adding more and more stores to my web page and every time someone buys a product I get a commission check.
How did your site grow in popularity from friends and family to a million dollar business?
CONNIE BERG: All my friends and relatives told their friends and relatives and by June 1999 my web site traffic went way up, so I started a mailing list and I began sending everyone the special discounts every week, and the rest is history.
Did it take a lot of money to start the business?
CONNIE: It cost nearly nothing to start. I use a really cheap computer from Sears, I don#146;t have expensive equipment. I know people think you have to have really expensive equipment but you really don#146;t have to. I#146;ve used the same computer since September, 1997. Monthly I pay $114 for my DSL line and $24.95 a month to have the site hosted.
How did you come up with the name Flamingo World?
CONNIE: When I was in high school I had a tank top with flamingos on it and they called me Flamingo Girl. When I started with the jokes I decided to call it Flamingo Girl#146;s home page and then when I switched to shopping I changed it to
Flamingoworld.com
.
What was life like before you stumbled across your little goldmine?
CONNIE: Before I started
Flamingoworld.com
, my husband was making less than forty thousand a year. After the fire we were getting food from the food bank to make ends meet. We lost everything and had no money, but since I have been making money I#146;ve paid it all back to the people who helped us.
How long have you been a stay-at-home mom?
CONNIE: I#146;ve always been a stay-at-home mom, the few times I#146;ve worked it was to help my husband out at his job. He was a manager at a bakery#151;and he worked 60-80 hours a week, sometimes he even had 2 jobs. We were committed to doing whatever it took for me to stay home and raise the kids. All he had to do was work and I handled everything else.
How has your life changed with your success?
CONNIE: My husband works 4 days a week and he#146;s cut his hours to 32 hours a week. Now that he#146;s off 3 days a week we#146;re both stay-at-home parents. I guess I made it up to him for working so hard all those years. He can semi-retire a little earlier. It#146;s funny because when I first started looking for jokes and shopping deals on the Internet he was getting mad because I was spending so much time on the computer. Then when the checks started pouring in he wasn#146;t mad because he saw I wasn#146;t just wasting time on the computer. Last year I made a million dollars with
Flamingoworld.com
.
What advice do you have for stay at home moms and dads who want to make money on the Internet?
CONNIE: Find something you like to do and research similar businesses on the Internet who are doing the same thing. Even if you like collecting things like matchbox cars you can start your own website. If you find something that really interests you or you have a hobbie, there#146;s a way to make money on the Internet for you. The affiliate programs help you link to companies that can pay you for having them link to your website.
For me it started out as something I did as a hobby and to take my mind off of my problems. I started having a lot of fun and I got really lucky when I found something I really liked doing and could make money at it too. The checks are sent quarterly from all the links I signed up for. I use companies like
www.Linkshare.com
and
CommissionJunction.com
. They have an assortment of catergories to select items from for your website. People enjoy websites that give them information too.
Are there any books you can recommend people read to start a business on the Internet?
CONNIE: I really haven#146;t had time to do any research or read books. Whatever you need to learn you can learn for free on-line through sites like Linkshare.com. They give you pointers and they#146;re all tried and true.
Why did you design a plain website without lots of graphics?
CONNIE: If I tried to make my site look too professional it would be a turn off to the people who rely on me for shopping deals and freebies. I#146;m just their friend Connie and I have about15,000 people who visit my website and receive my newsletter.
What do you do in your sparetime?
CONNIE: I like to shop but I feel funny going to thrift shops but I do because I#146;m addicted to saving money. Who knows how much longer I#146;m going to do this. It is important to me to help others and to give back to the community. I bought school supplies for all the needy children and I donate money to several charities#151;so I don#146;t feel guilty for getting assistance when we had that awful fire in our house. It#146;s a fun life now, it#146;s really nice to take care of my parents#151;they live on social security and my mom#146;s medication eats up all her money. So now I can yell at her about her health because I#146;m paying for it. The bottom line is that If you#146;re really depressed#151;things can get better.
Connie Berg enjoys married life, raising her children and working from home. Her highly successful website
Flamingoworld.com
has given Connie and her family the income and flexibility to live a wonderful life.
Staff
2010-05-07T08:42:59Z
ABCs for the Work at Home Mom - Part 2
Staff
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2010-05-07T08:42:57Z
2010-05-07T08:42:57Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>ABCs for the Work at Home Mom - Part 2
By Jill Hart
CWAHM.com
Work-at-home moms face many different challenges. From learning to accept help when needed, to building confidence in ourselves, to remembering the reasons why we chose to work from home. Below is the second in the series of tips to help work-at-home moms in the simplest of ways - the ABC's.
N = No - Work at Home Moms need to be able to say "No" when the situation calls for it. Don't be afraid to stand up for your business or to choose NOT to work with a customer who is more trouble than it's worth.
O = Office - As Work at Home Moms, we usually put ourselves last on the list. However, when we're in business it's important to have some room (even a corner) that is set aside strictly for business.
P = Priorities - It's hard to keep your priorities straight when raising a family and building a business. Take some time each week/month to sit down and evaluate your priorities and cut out things in your schedule that don't fit in.
Q = Quiet Time - It may seem impossible to find a time to sit, relax and be quiet when you have so many demands on your time. However, it's more important than ever that you take a little time for yourself to rejuvenate and renew when you grow weary.
R = Respect - Like the golden rule says, it's important to treat others as we'd like to be treated. This is so true for work at home moms - we must show the utmost in professionalism and treat even the most difficult clients with respect.
S = Significant Other - As work at home moms it's easy to get wrapped up with our business, our kids, ourselves. Don't forget to take the time to appreciate your husbands!
T = Time - As work-home-moms time is the ultimate enemy. :) Learn to prioritize and delegate whenever possible. Take time out for your kids each day - you'll be glad you did!
U = Unique - Your business needs to be unique to stand out from the crowd. Even if your product isn't unique you can always find a unique way to approach marketing, customer service, etc. Get creative and stand out from the rest!
V = Vision - It's so important to have a clear vision of where you want your business to go. Sit down and make a list of where you'd like to be in 5 years, in 10 years, etc. Without goals you won't get anywhere.
W = Wisdom - It's important to seek wisdom when running your own business. You won't always know the answer, so you need to find others that you trust that you can turn to when these things arise.
X = eXcitement - Celebrate each success! Keep yourself motivated and excited about your business. Try to share your business with someone new each day. Just telling someone about what you do can bring back that "spark" of excitement about your career!
Y = Yes - Yes! You CAN do it! Each of us started with a dream, a vision and the faith that we could make it happen. It takes hard work, determination and a "Yes!" attitude, but it CAN be done!
Z = Zoo - Yes, life as a work at home mom really is a zoo, but it's worth it! Being at home to see your child's first step, hear their first word - it just doesn't get better than that.
Working from home can be difficult, but it is well worth the effort. By keeping things in perspective we can reduce the stress that we put on ourselves. Remember these ABC's and you'll go far in your work-at-home career.
ABOUT THE AUTHOR:Jill Hart is the founder of Christian Work at Home Moms,
CWAHM.com
. Hart is also the co-author of the upcoming book, Home Based Blessings, due out in November 2006 for Christian moms who want to work at home. Hart and her husband, Allen of CWAHD.com (Christian Work at Home Dads) reside in Nebraska with their two children.
Permission Granted for use on Dr.Laura.com
Staff
2010-05-07T08:42:57Z
Examining One Family's Stay-At-Home Budget
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2010-05-07T08:42:55Z
2010-05-07T08:42:55Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>EXAMINING ONE FAMILY'S STAY-AT-HOME BUDGET
By Cheryl Gochnauer
Recently, I received the following e-mail: "Have you considered sharing your'stay-at-home mom's tight budget' with your readers? I would be veryinterested in reading it."
There are lots of practical steps a family can take to bring their financesunder control and unlock the door to Mom coming home. I'll be happy to letyou peek at my own budget, to get some insight on living frugally. You maysay, "Gee, that's a lot of work for such little return...", but keepreading. Consistent cost-cutting over the broad scope of your finances canreap significant rewards.
The secret to pruning your budget is mastering the ability to separate wantsfrom needs. Got your highlighter handy? All right...on your mark...getset...SAVE!
We sold our financed vehicles and bought two reliable older cars for cash.Even with the occasional breakdown, the overall cost is still less than amonthly payment. Because our cars aren't mortgaged, we carry only liabilityinsurance, which slashes premium costs.
By securing a no-fee mortgage refinance, our monthly house payment dropped20 percent, with no out-of-pocket expenses. All it cost us was time - a fewphone calls to go through the application process, then a short drive to themortgage company to sign the papers.
A home equity loan paid off all credit cards and installment loans andfinanced some remodeling. Interest is tax-deductible, we pay one billinstead of four, and I'm enjoying a new home office...all for $70 less amonth than we were paying before.
We raised deductibles on policies, after shopping around to secure thelowest price on life, homeowners and car insurance. We chose comprehensivemedical plans that limit out-of-pocket expenses and allow us to pay a flatrate per office visit.
Jealously guarding my at-home status, I resist paying full price foranything. I stick to that conviction while watching for coupons and weeklysales, taking stores up on their price-matching offers. Carrying threedifferent ad flyers into a local department store, I save gas as I do all myshopping in one spot.
There is usually a 30-day price guarantee, too. After making your purchase,watch advertisements over the next month. If the item you bought goes onsale, you can visit the service desk with your proof of purchase and get acash refund for the difference.
I don't go to the mall, unless I'm carrying a sale flyer which places itemswithin my limited budget. When buying big ticket items from commissionedsalespeople, be prepared to negotiate. You probably already know you canhaggle over cars, but what about furniture? Or appliances? Anywherethere's a commission to be made, there's a salesperson who has a vestedinterest in selling you something. Be wise as a serpent, gentle as a dove -and demand the best deal available.
When shopping for groceries, make a detailed list before you leave the houseand stick to it. Take coupons for items you've selected, and patronizesupermarkets that give you double and triple their face value. Invest in afreezer and stock up on "loss leaders", the low-priced teaser items storesuse to lure you.
Many clothes marked "dry clean only" can be handwashed in gentle soap fordelicates. But a sure way of saving money is avoiding buying "dry cleanonly" clothes in the first place.
Speaking of buying clothes, don't overlook those neighborhood garage sales,especially the ones held in more upscale areas of town. Kids grow out ofclothes so quickly, these sales can be a blessing. Often, gently-worn jeansand dresses are found for pennies. You can garner some cash and free upspace by cleaning out closets and basements for your own sale.
Our credit union offers no-cost checking. By purchasing checks through themail, I pay a third of what banks are charging. For that inevitable loan,I've found credit unions consistently charge lower rates than banks, sothey've got my business when it comes time to buy a big-ticket item.
We paid off, then canceled, all our credit cards except one. This majorcredit card carries a low fixed rate, with no annual fee. We try to use ourcard only to the extent that we can pay it off each month, avoiding debt andinterest charges. If you have an excellent credit history, request theannual fee be waived. There's a good possibility they'll agree, sincecompetition for trustworthy credit customers is fierce.
The first time I stroked out opening an outrageously high electric bill, Icalled the utility company and learned about level payment plans. Now wepay a predetermined amount each month, protected from burdensome chargesgenerated by July's heat or January's freezing temperatures.
Take advantage of buy-in-bulk opportunities on everything from frozen foodsto Internet access service. Send e-mail messages to on-line friends andassociates instead of calling long distance or using snail mail. I don'tput a stamp on any mail I can deliver myself.
Fill out and mail those rebate forms. I've received a computer modem, 200diskettes, extra memory and a software upgrade for free, just because I tookthe time to fill out the proper paperwork.
Often, I'll come out ahead when using a combination of coupons and mail-inrebates. For instance, a shampoo was on sale for $2.50. I used a 50 centcoupon, and the store doubled it. My cost for the shampoo was now $1.50. Itook two minutes to fill out the $2.00 mail-in rebate attached to thebottle. Even after the cost of a 34-cent stamp, I had a free bottle ofshampoo and 16 cents to the good.
I don't pay for baby-sitting when I can trade with a friend. A filmfanatic, I've been known to trade typing services for show tickets. But Ionly go see movies I'm dying to see. All others, I rent on video whenspecials are running: 2-for-1 Mondays, etc.
Whether minding our manners at a sit-down restaurant or pigging out at thelocal buffet, my family uses newspaper coupons and Gold C or Entertainmentcoupon books. Sometimes it's cheaper to eat out than cook at home,especially when you visit an establishment where kids eat free.
Penny-pinching aside, there are some things you just gotta have. Aftertrying to live without it for six months, our family decided satellite TVwas a necessity. So, we'll cut somewhere else.
Instead of taking a daily newspaper, I buy the Sunday edition, which usuallypays for itself because of the coupons inside. I don't purchase books ormagazines I can check out of the library, unless I can use the informationin them on an on-going basis.
Networking is important. Find out whose brother-in-law works on homecomputers... whose friend knows lawns...whose sister holds a once-a-yearprimo garage sale with upper-class outfits going for a pittance.
Don't pay someone else to do something you can do yourself. Use the morerelaxed time schedule of an at-home mom to expand your horizons in ways thatwill benefit your family. Learn to maintain your automobiles, do your owntaxes, perform your own repairs. Wear out your library card, checking out"how-to" books.
By applying thrifty principles liberally, you'll be surprised how muchyou'll save. Then, when it comes time to splurge on something that's justpure fun, you won't feel guilty -- it'll be your reward for being such agood steward of your finances.
(Comments? Write
Cheryl@homebodies.org
, or visit her website at
www.homebodies.org
. Her book, "
So You Want to Be a Stay-at-Home Mom
," isavailable through
Dr. Laura#146;s Reading Corner
. Copyright2001 Homebodies.Org, LLC. Permission granted for use on DrLaura.com.)
Staff
2010-05-07T08:42:55Z
The Four Basic Home-Based Businesses
Staff
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2010-05-07T08:42:53Z
2010-05-07T08:42:53Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The Four Basic Home-Based Businesses
by Lisa M. Roberts
Today there are literally thousands of independent careers that can be developed in the home. With so many Home-Based Businesses (HBBs) in operation right now and more surfacing every day, there are plenty to choose from and plenty more to mix and match to make yours original.
To help you sort out your options, here's a break-down of the four basic types of HBBs. Use the following categorizations to start clearing a path to your home career goals.
The Basic Four HBBs (Home Based Businesses)A HBB sells either products or services. Of the product-based HBBs, you can sell manufactured goods or hand-made goods. Of the service-based HBBs, you can sell hard skills or soft skills. Combinations involving all four types certainly exist, but for the sake of clarity we'll take a close look at each separately.
Also for clarity's sake we'll apply the "HBB Formula for Success" to sample HBBs of each category. This concept takes the basic product or service, adds a target market (specific client or customer), and a niche (a specialty) to come up with a specific HBB. Use such a formula to get to the root of your own idea, and then consider branching out as your home career develops.
(1) Selling Hard-Skill Services
Hard skills are practical skills, skills that have a tangible end result. Any skill that involves the operation of things (appliances, computers, what-have-you) and data (factual information) usually fall into this category.
Because today's computer and communications technology have created so many new "hard skills" -- many of which are in high demand -- this is where much of the excitement is stirring among the work-at-home community. HBB owners in this category are breaking all kinds of boundaries -- geographical (they can work anywhere, anytime), personality (many have temperaments outside the traditional entrepreneurial type) and professional (many come from the corporate world and are headed back...often worth more than when they left!).
But in all the excitement let's not forget the more standard hard skills with a rich history in the HBB workforce that are still in great demand today. These include such work-at-home professionals as accountants, bookkeepers, typists, translators and copywriters, as well as independent contract workers such as plumbers, electricians, handymen, landscapers and roofers.
Basic Product/Service + Target Market + Niche = HBB Owner
Programming + Children + Games = Software Game Developer
Programming + Parents + Games = Educational Software Game Developer (!)
Indexing + University Presses + Accounting = Accounting Textbook Indexer
Web Design + Seniors + Families = Family Tree/Family Historian Web Site Developer
Desktop Publisher + Non-Profit Organizations + Annual Conventions = Convention Brochure Producer
(2) Selling Soft-Skill Services
Soft skills are interpersonal and critical thinking skills, skills that "reach out and touch someone" or involve analysis of the "big picture." Any type of teaching, counseling, consulting, managing or communicating fall into this category, and HBBs of this type primarily involve interaction with people or information (that gets delivered to people).
Again, technology has boosted the possibilities in this home-based arena too. For instance, while before a SAHM licensed math teacher might have run a private local tutoring service out of a separate wing of her home, now she may be able to extend her services to the entire online community through "classes" or "lessons" delivered electronically. Plus new home businesses are emerging that strictly serve the online community, such as PR agents who focus solely on getting web sites media attention.
Basic Service + Target Market + Niche = HBB Owner
Financial Consulting + New Parents + College = College Fund Financial Advisor
Publishing + Vegetarians + Newsletters = Vegetarian Newsletter Publisher
Musician + Children + Piano = Piano Teacher
Writing + CEOs + Corporate Events = Executive Speech Writer
Event Planner + Brides + Modest Budgets = Creative Wedding Planner
Interior Design + Christians + Christmas = Christmas Tree Decorator
(3) Selling Manufactured Products
Manufactured products are mostly goods that are produced outside the home. They can be sold via mail order, telemarketing, retail stores, special distribution programs and direct sales. The most popular type of business in this category are what are known as Multi-Level Marketing ventures (MLMs), aka Direct Sales, Network Marketing or "Party" businesses.
It#146;s important to keep in mind that even with reputable MLMs -- those that ask for a modest investment or "membership fee" and offer strong support to their consultants -- it still takes an ambitious, hard-working, enthusiastic entrepreneur who is 100% committed to the product line to make it all worthwhile. A cheery personality also goes a long way in the "party" businesses that sell products mostly through local neighborhood parties hosted by friends and relatives of the HBB owner. Also needed are strong salesmanship, self-motivation and public speaking skills. This, naturally, is the minority of the overall workforce, so step slowly if you're moving in this direction!
If you do think you have the personality and drive for this type of home career, I have known a few local work@home moms who are very happy with the following Direct Sale companies:
Pampered Chef
Mary Kay Cosmetics
Discovery Toys
Creative Memories
(4) Selling Handmade Products
A business that sells handmade products is a labor of love. For men and women with talented hands, the love for the work itself carries this type of business to success. It takes craftsmanship, self-discipline, and a special rapport between the business owner and her customers for these HBBs to thrive.
Selling handmade goods is like gift-giving year-round -- tenderly creating a product, wrapping it up and offering it to customers who to some degree share the same passion. This is the "American Classic" version of working from home, and is as popular today as it has ever been.Consider this classic the thread that weaves HBBs throughout the ages!
Basic Product/Service + Target Market + Niche = HBB Owner
Crafts + Home Owners + Holidays = Year-round Holiday Wreath Maker
Tayloring + Children + Halloween = Children's Costume Maker
Painting + Proud Parents + Graduation Ceremonies = Graduation Portrait Artist
Woodwork + Pet Owner + Pet = Bird or Doghouse Carpenter
Jeweler + Teens + Hair = Teen Hair Fashion Jeweler
Needlework + BB Owners + Quilts = BB Quilt Maker
Once you settle on the specific product line or service of your HBB, you are ready to start preparing for its debut. Remember that selecting your home-based career is a time to not only evaluate your most marketable skills, but to reflect on the contribution you always wanted to make on your local community and perhaps on society at large. Throughout your professional development, keep your personal mission in the back of your mind and weave it through the information you process on your way to an independent vocation. It will give your home career heart and your bank account soul!
Excerpted from "
How to Raise A Family A Career Under One Roof: A Parent's Guide to Home Business
" by Lisa M. Roberts. Permission granted for use on drlaura.com. Lisa, the mother of four, is a freelance journalist, publisher of
en-parent.com
, and co-author with Paul Sarah Edwards of the forthcoming book, "The Entrepreneurial Parent: How to Earn Your Living at Home Still Enjoy Your Family, Your Work Your Life" (Putnam/Tarcher, 2002).Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:42:53Z
The Graduation Speech Your Kids Will Never Hear
Staff
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2010-05-07T08:42:51Z
2010-05-07T08:42:51Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The Graduation Speech Your Kids Will Never Hear
By Cliff Ennico
Members of the Class of 2004:
I was sorry to hear that the children#146;s TV show host who was to have been your commencement speaker today had to bow out at the last minute. I was delighted, however, when the Trustees called me about an hour ago and asked me to fill in.
While I know some of you already have jobs and some (OK most of you) do not, I know that all of you are wondering today what your lives are going to be like.
There are two things you need to know about your future. First, whatever dreams you hope to fulfill in your lives, you won#146;t be able to do them until you are making a living. Your first priority is to achieve financial security, and it may well take you the next 50 years to achieve it.
If you thought that was bad, here#146;s the second thing. It has never been a more challenging time to make a living in America.
Many of your parents worked for large corporations, but you cannot count on them any longer to provide you with a lifetime living. Today#146;s computer technology has eliminated the need for large corporate staffs. Our global economy often forces corporations to hire people overseas who can work for a fraction of the salaries and benefits their American competitors need. If only Americans can do the job, many companies prefer to hire them as independent contractors who will not receive benefits, health insurance or other employee #147;perks#148;. And in today#146;s volatile economy even the most #147;employee friendly#148; company can be taken over by a competitor, lose a key product due to obsolescence, or fail due to poor management.
The Government won#146;t be there to bail you out. Social Security, Medicare and other government programs that helped your parents either won#146;t be there when you are ready for them, or they will be so scaled back that only the most poverty-stricken Americans will qualify for them. Hopefully that won#146;t include any of you.
And you won#146;t be able to fall back upon blue-collar or service jobs, because you will be competing with a massive wave of new immigrants from Asia, Africa and Latin America who are only too willing, for a lot less money, to take the jobs we educated Americans are too proud to do.
Make no mistake -- when it comes to earning a living, sooner or later you will be on your own. My prediction #150; no, my guarantee #150; is that at some point (maybe next year, maybe when you turn 50) all of you will find yourself in a situation, at least temporarily, where you must rely on your own efforts to generate the income you need. You will do this by owning and running your own business.
My advice to all of you is to begin preparing for that day now. Start developing hobbies and other interests that you can turn into profit making businesses someday. Start reading and learning now about how successful businesses are run. Look for opportunities to start a business, and don#146;t wait until the #147;time is right#148; before you launch. The sooner you get started, the sooner you will be able to support yourself without having to rely on anyone else for your income. And then you can get on with the fun stuff you#146;ve always wanted to do.
Now for the good news . . . you#146;re gonna have a blast! Unlike your parents, who often had no choice but to slave away in a boring, repetitive job, you have the power to take control of your own destiny. Yes, it takes a lot of courage. Yes, there will be some sleepless nights. But I have worked with over 10,000 people who have done it and succeeded, and believe me, a lot of them weren#146;t as smart as you.
Don#146;t fall into the trap, as many of your parents did, of thinking that your career has to be #147;only one thing#148;. Some of my most successful clients do a number of different things #150; they have a day job, they do some part-time consulting, they write books, they teach evening classes at a local college, they buy and sell stuff on eBay, they sell home-made wood carvings at crafts fairs, they own apartment buildings. Yes, it sometimes gets a little crazy, but it all adds up to a living, and if any one of those things doesn#146;t pan out, they#146;ve got the rest to fall back on. Diversification is a good thing for careers as well as investment portfolios.
Also, don#146;t fall into the trap of thinking you must #147;make use of your education#148; when planning your career. Some of the most successful people in America today are college dropouts. In the business world, a lot of A students end up working for people who were C students in school. A business need not be intellectually stimulating, or require a knowledge of calculus, to be wildly successful.
So by all means reach for the stars and follow your passions (this is a graduation speech, after all). Without guts and determination, you will have trouble earning a living in this new, tough business world, even if you#146;re as smart as Einstein. May you succeed beyond your wildest dreams, and may you never run out of money. Thank you.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2004 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:42:51Z
How To Run A Yard Sale
Staff
http://www.DrLaura.com/b/How-To-Run-A-Yard-Sale
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2010-05-07T08:42:49Z
2010-05-07T08:42:49Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Making MoneyHow To Run A Yard Sale
Dear Dollar Stretcher,
How about an article on "How To Run A Yard Sale"?
-- Darlene
My pleasure! Yard sales, or in some parts of the country 'tag' or 'garage' sales, can be a lot of fun whether you're the buyer or the seller. But, a successful sale is more than taking stuff out of your garage and putting up a few signs.
There's been a lot written about yard sales. But in all the articles I've seen, none have tried to apply techniques that are used by retailers to make the most of every sales opportunity. Let's see if we can't take some ideas from the big stores and use them in our simple yard sale.
The first thing that any serious retailer does is to try to understand their customer. They'll do focus groups and surveys to find out what the customer wants. For you it's much easier. Just think like a yard sale shopper!
Start by remembering the signs that you've seen when you've been yard saling. Ever stop for the ones that were written in crayon and couldn't be read? Me either. And there's no excuse for a bad sign. All it really needs to say is "Yard Sale" and your address in big block letters. You can use a computer or draw the letters free hand. Just make sure they can be easily read.
Make the sign overly large. Get something that's 18" x 24" or larger. If you can't find cardboard, go to a home center and buy a 4' x 8' sheet of drywall. You can cut it with a razor knife into whatever size and shape you want. For less than $5 you can have a whole bunch of big signs. And draw attention to the sign. Helium filled balloons or bright colors on the sign will attract drivers' eyes.
Next you'll want to consider the different types of shoppers. They have different styles. Take the young mother shopping for children's clothes. She might have her children with her. That can be a distraction. But if you put kids' toys next to kids' clothes, the little ones will play while mom shops. And it's likely that the kids will ask mom to buy a toy, too!
Just like your grocery store puts the milk in the farthest corner, you can take things like children's clothes and put them in the back. That's because your most likely buyer is determined to find bargains.
Another type of shopper is looking for collectibles and antiques. Not serious Louis XIV antiques, but rather the kind of thing that hasn't fit in your decor for 15 years but is becoming trendy again. These are people who 'see the possibilities' when looking at an item. They tend to be creative and you'll do better if you can help them trigger their imagination. Sometimes just mentioning that an item reminds you of your grandmother's house during the 60's will be enough to get them going. And remember that you won't get antique prices here. People are looking for bargains, not museum pieces. You can place collectibles towards the back of your store. For collectors half the fun is in the search.
Men are a totally different type of yard sale shopper. Even when they're just browsing, they'll shop with a goal in mind. And they want to shop quickly. If you'll be offering tools or building supplies put them up front where they'll be easily seen. And have an extension cord available if anything is electric powered. Items must be marked. Many guys won't even take the time to ask a price.
How you display items can also work to your advantage. Try to put the most valuable items on tables so that they can be more easily seen. Toys, on the other hand, should be on the ground where kids can pick them up and get attached to them. Use removable stickers to clearly mark prices.
We can also learn some pricing tips from the big retailers. Be creative with pricing. Things like "buy one, get one free" can work for you, too. Don't be afraid to mark things down as the sale progresses. Or announce a 'blue light special' to the next person who buys a particular type of item. Don't hesitate to do something unusual. Informing your next customer that they're the 25th shopper and entitled to a 25% discount will get a conversation started and could lead to a sale. If nothing else, you'll have more fun. Pricing items for a garage sale is almost an artform. It's hard to say what an item is really worth. Leave room so that you can come down 25% to 50% and still make what you want from an item. Try to think what type of buyer would be interested and how much they'd be willing to pay.
Having a successful yard sale is no accident. It does take some work. In fact, unless you have enough items so that you can reasonably expect to make a couple of hundred dollars, it might be wise to take the better items to a consignment shop and give the rest to charity for the tax deduction. But if you don't mind a little effort, a yard sale can make you a few bucks and provide some fun at the same time. I've read that many big retailers started with just a few items. Who knows, you might be the next J.C. Penney!
Gary Foreman is a former Purchasing Manager and Certified Financial Planner. He currently edits The Dollar Stretcher website
www.stretcher.com
. It contains the web's largest collect of free articles to save you time and money. There's even a free weekly email newsletter. Visit and save some money today!
Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:42:49Z
SEW proud to be Her "Kids Mom"
Staff
http://www.DrLaura.com/b/SEW-proud-to-be-Her-Kids-Mom
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2010-05-07T08:42:48Z
2010-05-07T08:42:48Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>SEW proud to be Her "Kids#146; Mom"
by Pamela Tripaldi
Pamela Tripaldi is the founder of "You Can Make It." Hundreds of parents have begun to earn money from home by teaching sewing, using lesson plans and instructional videos from "You Can Make It." When reflecting on her priorities in life, Pamela says, "My children are gifts that God has given me. My first obligation is to nurture those gifts. The second gift that I got was sewing. I am very lucky to be able to work with all the gifts that I was given, and to help other people achieve that dream also."
Starting "You Can Make It"
When my first daughter was born in 1987 I became a stay-at-home mom. My second daughter came in 1989. After many years of being home with my girls, I felt the need for a creative outlet. I wanted to do something, but didn#146;t want to work full-time. Having been involved with sewing since my teen years, I decided in 1992 to approach my local fabric store and ask if I could offer sewing lessons. The classes were very successful. I am fortunate to have a supportive husband who stayed at home in the evening to watch the girls when I was starting the business. (Spending time with the kids while the wife launches a business from home is a bonus for fathers, in my opinion.)
After offering sewing lessons locally I realized that teaching others to sew is something that other people could do. I decided to write out my seven-level sewing curriculum and offer it to others, so they could do what I did. After two years of writing into the wee hours of the morning -- days were too much fun to give up -- my lesson plan was complete. I started marketing it nationally in 1994. This was the beginning of my company, "You Can Make It."
Making it Work
Along with the curriculum, I have produced a series of sewing videos. The videos follow the same seven- level curriculum as the teaching manuals. Producing the "You Can Make It" videos has been a seven-year project for my company and my family. My girls have been in each video and my husband will be in Level Seven. With the help of a teacher, or just by watching the videos, anyone can learn to sew.
Although I no longer have time to offer sewing lessons personally, my business keeps me very busy. We have over 300 teachers using our curriculum. Most of them are in the United States, but we also have affiliates in China, Canada and other countries. My office is in my home, and I employ local high-school students to help me after school so I can shuffle my kids (now 13 and 12) around. Occasionally it is still necessary to work late at night, because I#146;ve taken time to see a school play or spend the day with my girls. I am truly blessed to have had the support of my family, and, all the while, being available to my family when they need me.
We now have experienced sewing teachers all over the world, sharing their talents and the skills they#146;ve learned. My dream of teaching others to sew, while keeping my family as my first priority, has come true.
How How Others Can "Make It" Too
"You Can Make It" is structured so that people can earn extra income by using our program to help them offer sewing lessons. We supply everything that an experienced seamstress needs to teach. There is a one-time purchase price for the program, with no franchise, monthly or student fees. The teacher#146;s initial cost is minimal. He/she needs two or three sewing machines, which we recommend they borrow from friends until their income is sufficient to purchase their own. Teachers pay a small yearly fee to continue to receive student referrals, our newsletter with pattern suggestions and all updates to our program.
"You Can Make It" teachers can offer lessons at a local fabric store, community center, church, or in their own homes. Some of our teachers offer free classes at shelters for abused women, in jails or in other community service settings. Our curriculum includes commercially available patterns, so there is no need to keep returning to us to buy supplies.
We#146;ve made it easy to start earning money by offering complete lesson plans, advertising materials, marketing tips, and other sewing teachers to network with. We even have a free referral service. When potential students contact us, we refer them to a "You Can Make It" teacher near them.
Sewing is becoming popular again, and many more adults than children wish to learn to sew. In addition to being a wonderful hobby, sewing can be a means for anyone to become financially independent. With the skill of sewing, the prospects are wide open in home decorating, alterations, dressmaking, and dress designing and other services. All are excellent avenues for providing income while allowing one to structure a life around family. If you would like to learn more about You Can Make It, visit us on the web at:
www.youcanmakeit.com
or call us toll-free at (888) LRN-2-SEW.
You can purchase
"You Can Make It" sewing videos
.
Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:42:48Z
On-Line Resources for Stay-At-Home Parents
Staff
http://www.DrLaura.com/b/On-Line-Resources-for-Stay-At-Home-Parents
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2010-05-07T08:42:45Z
2010-05-07T08:42:45Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>ON-LINE RESOURCES FOR STAY-AT-HOME PARENTS
1) At-Home Mothers
www.athomemothers.com
The National Association of At-Home Mothers offers complete support for theat-home motherhood lifestyle, including a quarterly magazine called At-HomeMother, as well as numerous other member benefits. NAAHM is "committed tofinding solutions to all of your at-home mothering concerns". Membership is$18 per year. You can get more information by writing the NationalAssociation of At-Home Mothers, 406 E. Buchanan Ave., Fairfield, IA 52556,or by e-mail:
information@AtHomeMothers.com
. Also take a look at theircomprehensive website, which offers free information, sample articles andInfo Guides, a bookstore of publications chosen specifically for at-homemothers, and much more.
2) Caring at Home
www.momsnetwork.com/suites/parentchild/caringathome/
Caring at Home is a non-profit organization operated by work at home momswho would like to make a difference in the lives of the nation's childrenand the people that care for them. They want to create a link among allpeople who share the same concern and help them reach the ears ofgovernmental decision-makers. Their motto: Together we can make adifference!
3) Cheapskate Monthly
www.cheapskatemonthly.com
Author Mary Hunt's Cheapskate Monthly is a 12-page newsletter published 12times a year and delivered either to your mailbox or via the Internet.Cheapskate Monthly's purpose is (1) to empower and educate those that areliving financially responsible lives to become even more effective moneymanagers, and (2) to help those who are struggling to live within theirmeans find practical and realistic solutions to their financial problems, toget out of debt and begin living joyfully beneath their means. Bothversions of Cheapskate Monthly are filled with tips, humor and greatinformation to help you stretch those dollars till they scream! Tosubscribe to Cheapskate Monthly, send a check or money order for $18.00 toCheapskate Monthly, P.O. Box 2135, Paramount, CA 90723-8135. For moreinformation, call (562) 630-6474.
4) Cyber Working Moms
www.cyberworking.com
Cyber Working Moms site was built to encourage working women who chose to stay at home with their children, by providing helpful information, encouragement, tips on how to make things easier and secondly for support and advice from other "work at home moms."
5) Daddy's Home
www.Daddyshome.com
An on-line resource for primary caregiver fathers.
6) The Dollar Stretcher
www.stretcher.com
The Dollar Stretcher is dedicated to "living better...for less" and featuresways to help you stretch your day and your budget. The website includes alibrary with over 3,000 free articles covering everything from babies tovacations. There are also three free electronic newsletters, as well as amonthly print newsletter that is available by paid subscription. The site'seditor, Gary Foreman, is a former Certified Financial Planner and purchasingmanager. If you want to save money, this is the place to start.
7) Frugal Moms
www.frugal-moms.com
Practical advice and ideas on how to save money, make the most of yourincome and still enjoy life around you. Topics include anything with afrugal slant: cooking, cleaning, decorating, crafts, help for beginners,gardening, humor and more. Discussion lists, newsletters and weekly articleson saving, scrimping and clipping. Where is YOUR money going?
8) Hearts at Home
www.hearts-at-home.org
Founded by Jill Savage in 1993, Hearts at Home offers a variety of resourcesand events to assist women in their job as wife and mother. Resourcesinclude the Hearts at Home magazine, the Hearts at Home devotional, and theHearts at Home website. Additionally, Hearts at Home conferences make agreat getaway for individuals, moms' groups, or that special friend, sister,or sister-in-law. Regional conferences attended by over 10,000 women eachyear provide a unique, affordable and highly encouraging weekend for thewoman who takes the profession of motherhood seriously. Contact: Hearts atHome, 900 W. College Avenue, Normal, Illinois 61761. Phone: (309) 888-MOMS.
9) Home-Based Working Moms
www.hbwm.com
This is a professional association and an online community of parents whowork at home and those who would like to. HBWM members receive a monthly(print) newsletter, free advertising options, Hire-A-Mom directory listing,national publicity opportunities, e-mail discussion list, private messageboards, support, networking, information, more! Home-Based Working Moms,PO Box 500164, Austin, TX 78750. Phone: (512) 266-0900
10) Homebodies
www.homebodies.org
Author and speaker Cheryl Gochnauer's aim is to empower and encourageat-home parents and working mothers who are considering the at-homelifestyle by providing practical financial, emotional and career-planningadvice. Her website features columnists, resources and message boards whereyou can interact in a safe environment with likeminded parents around theworld. Read how she cut $1000 from her family's monthly budget:
www.homebodies.org/dollars.html
.
11) Main Street Moms
www.mainstreetmom.com
Main Street Moms is the online magazine for modern mothers with traditionalvalues. You will find articles on parenting, marriage, family budgeting,craft ideas, spiritual growth, family life, and more. You will also findlively discussion boards, free newsletters, and monthly contests. Foundedin 1998,
MainStreetMom.com
has developed into a community of at-home momswho network their ideas, joys, and frustrations. Money is tight for all ofus, but through sharing ideas, we help each other get through the toughtimes so that we can fully put our children first.
12) Miserly Moms
www.miserlymoms.com
Miserly Moms is a multi-faceted organization founded by Jonni McCoy in 1992.Jonni's goal is to help people (especially moms) get the tools that theirfamilies need to save money and spend more time together. Jonni writes booksand articles, teaches workshops, runs discussion groups, and does radio andtelevision appearances, all for the purpose of educating people on how toshop more wisely to stretch their dollar.
13) Mommies on the Web
www.mommiesontheweb.com
A site offering not only parenting information and articles, but alsosupport and friendship to all moms. Join the online community to meet andinteract with other mothers. Enjoy planned chats, special events, recipeexchanges, and many mailing lists. Or shop in the MomVentures mallfeaturing services and products offered by work at home moms.
14) Mommy Savers
www.mommysavers.com
This website is for thrifty moms who want the best for their families butdon't want to spend an arm and a leg to get it. The decision to be astay-at-home mom is one of the most difficult many new or prospectiveparents face. The main reason many parents feel it is not possible isfinancial. How can a couple with two wage-earners get by on one salary whileadding another member to the family? It certainly is not easy. While everyfamily is different, they all have one thing in common: nobody takes hometheir entire salary. That is where the cost of work comes in. To read therest of the article, go to
www.mommysavers.com/moneywise/cost_of_work.htm
15) MOMS Clubs International
www.momsclub.org
MOMS Clubs are exclusively for at-home mothers, no matter how old theirchildren are. Founded in California in 1983, they now have over 1,250chapters with more than 63,000 members across the United States. MOMS Clubsmeet during the day, and children are welcome.
16) Moms Promoting Moms
www.joemamaproductions.com
Ann Diaz of Joe Mama Productions in Littleton, Colorado, has a great idea:She provides a business opportunity for parents who want to work from home -and the opportunity involves having that parent create opportunities forother parents who want to work from home. It's a real win-win. Says Ann, "Iam in the business of helping other work-at-home moms to be more successful,by presenting them to their local communities as a group, giving them aunique co-op type of marketing venue. I do this by publishing a bookletcalled Moms Inc.: Business Directory of Work-at-Home Moms T."
For a modest upfront fee, Ann provides essential materials, businessguidebook and marketing support that a person needs in order to create adirectory in her own city. "One of the great features of this businessopportunity is that your out-of-pocket expenses are very low. "When I wasdoing my first directory, I started from scratch and with no workingcapital. I didn't go to the printer until I had generated enoughadvertising income to pay for it. That way, there was no risk. If Ifailed, I would have simply returned everyone's checks. Fortunately, ittook off!"
Interested in creating a Moms Inc. directory for your city? For informationabout becoming a licensed publisher of Moms Inc.: Business Directory ofWork-at-Home Moms in your local area, or to find out if there's a Directorycoming soon to your area, contact Ann Diaz at (970) 593-0604; or e-mail:
joemamapro@aol.com
. You can also visit her web-site at
www.joemamaproductions.com
.
17) Mothers More
www.mothersandmore.org
Mothers More is an international not-for-profit organization supportingsequencing women - mothers who have altered their career paths in order tocare for their children at home. The organization addresses women'spersonal needs and interests during their active parenting years, promotesrecognition and respect for sequencing women, and respects the right ofevery mother to choose if and how she will combine parenting and paidemployment. Mothers More also acts as an advocate for public andemployment policies that accommodate sequencing. Visit their
website
orcall (800) 223-9399 to find a chapter close to you.
18) Mothers at Home
www.mah.org
Mothers At Home is the first and largest national non-profit organizationdedicated to the support and encouragement of at-home parenting. Founded in1984, Mothers At Home publishes an award-winning monthly journal, WelcomeHome, as well as books and information on at-home parenting issues. MothersAt Home serves as an advocate on behalf of at-home parents through mediainterviews, public policy analysis, and presentations to parenting groups.For more information visit our website, e-mail us at:
mah@mah.org
, call(800) 783-4666 for a free information packet, or write Mothers At Home,9493-C Silver King Ct., Fairfax, VA 22031.
19) Stay At-Home Dads
www.Slowlane.com
The Slowlane web site is a friendly online environment to help support,advocate and inform dads, with particular attention given to stay-at-homedads (SAHD). The site is a comprehensive collection of resources includingthose that handle the common issues like starting a playgroup with otherdads and running a home business as well as the tough issues (divorce,death, custody, etc.), so a dad who needs specific information will easily beable to find a resource to fit his personal search criteria.
20) Work-at-Home Moms
www.wahm.com
The Online Magazine for Work-at-Home Moms (
www.wahm.com
). This site ispacked with useful information about succeeding in the work-at-home mom(WAHM) arena. Excellent links and resources, plus a smattering of cartoonsand light commentary, make this an excellent resource for current WAHM's orWAHM wanna-be's.
21) Working From Home
www.workingfromhome.com
Paul and Sarah Edwards, authors of this month's Perspective Guest Essay,have been trailblazing the topic of working from home for over 20 years.Their books on working from home are essential resources. Their web site at
www.workingfromhome.com
also contains a wealth of ideas and advicefor those of you who want to take control of your lives and realize yourdreams.
Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:42:45Z
Have You Thought About Scoping to Make Money?
Staff
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2010-05-07T08:42:43Z
2010-05-07T08:42:43Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Have You Thought About Scoping to Make Money?
'...A scopist works with a court reporter and will use whatever resources are provided, as well as any they have at their disposal, to produce a clean transcript for the court reporter...'
Check out
www.scopists.com
. They have information about what scoping is and they also have a place that you can register your name as a scoper or proofreader.
Proofing is a good thing to do if you don't want to invest the money in the software needed to scope. Proofing for court reporters is a little different than proofing for, say, a book editor or some other profession. However, most court reporters would be more than willing to give feed back on how things should be done. In fact, when I have someone come to me who is interested in proofing I kind of give them an overview of what I'm looking for. Basically what I tell them is that I really need them to concentrate on the words -- sometimes, though, what they're reading contains wrong words -- and I can deal with the punctuation, et cetera.
If you would like more information regarding this, please email me:
paula414@cox-internet.com
Sincerely,
Paula
Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:42:43Z
At-Home-Parents in Dr. Laura Perspective
Staff
http://www.DrLaura.com/b/At-Home-Parents-in-Dr.-Laura-Perspective
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2010-05-07T08:42:42Z
2010-05-07T08:42:42Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>At-Home-Parents in Dr. Laura Perspective
The
Dr. Laura Perspective
now has a section devoted to the needs and interests of parents who wish to be at home while their children are at home. This month#146;s column features Pamela Tripaldi, whose business, #147;You Can Make It#148; has enabled hundreds of people to begin earning extra income by offering sewing lessons. #147;You Can Make It#148; supplies everything that an experienced seamstress needs to teach. There is a one-time purchase price for the program, with no franchise, monthly or student fees. The program includes complete lesson plans, advertising materials, marketing tips, and other sewing teachers to network with. If you would like to learn more about You Can Make It, go to
www.youcanmakeit.com
or call them toll-free at (888) LRN-2-SEW.
Staff
2010-05-07T08:42:42Z
Master the Pitfalls of Your Home Business
Staff
http://www.DrLaura.com/b/Master-the-Pitfalls-of-Your-Home-Business
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2010-05-07T08:42:42Z
2010-05-07T08:42:42Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Master the Pitfalls of Your Home Business
Christine Kloser
www.newentrepreneurs.com
Ok, you made the choice to leave the SAFE job and venture out on your own. Now what?
You know your experience or product and understand the inner workings of your industry. The product or service is ready and you have spent time on your materials, brochures and website. You are ready for business#133;Monday comes and you are staring at the phone waiting for customers#133;this is the place that most at-home and small businesses fall short#133;MARKETING!
Isn#146;t it funny that we spend all the time in preparation of who we are, what our product will provide but not who is the customer and where do I find them? What are the different cost-effective channels of marketing? What#146;s the best use of my resources? What are ways to reach my target market with a message that will generate sales?
Don#146;t use demographics and agency research#133;you know who your buyer is, and only you understand the habits and day to day patterns. Industry related websites are usually good resources.
We now have this amazing tool called the Internet. Find ways to use the Internet as a cost-effective means to reach your target market.
Identify the problem that you are a solution for; let websites and the media know that you have a solution of value for their readers and you#146;d like to submit an article (or would they write about you?).
Articles and PR are THE most cost-effective adverting a small business can use to get great exposure.
Be willing to be creative and to think outside the box.
Attend seminars where you can network with people like you who have relationships that could be valuable.
Get out of the house or office and find new customers, business will not come to you until you get the word out there#151;and don#146;t be afraid to ask people who have used your service or product for referrals.
Christine Kloser, founder of the Network for Empowering Women, educates, inspires and empowers women entrepreneurs to start and expand their business and turn their dreams into reality! NEW is one of the fastest growing organizations of its kind and the only one that dedicates itself to helping women make money AND MAKE A DIFERENCE. Christine can be reached at
ck@newentrepreneurs.com
or by calling (310) 745-0794. Get her FREE newsletter, or find an upcoming workshop or teleseminar at
www.newentrepreneurs.com
. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:42:42Z
When Buying A Franchise Look For The "Dirty Lowdown"
Staff
http://www.DrLaura.com/b/When-Buying-A-Franchise-Look-For-The-Dirty-Lowdown
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2010-05-07T08:42:41Z
2010-05-07T08:42:41Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>When Buying A Franchise Look For The "Dirty Lowdown"
By Cliff Ennico
#147;About two weeks ago, we got the approval paperwork for a real estate franchise. My partner and I are now finding out that the franchise we bought has a bad name around town, and it is hampering our development. We had no idea of the bad reputation of this franchise, and also that they had problems in the past in our area. This is looming over everything we try to do. We want out, but we paid a $15,000 franchise fee and we want to get it back. Is this possible? We initially asked to cancel, but were talked back into it.#148;
You really have to do your homework before you buy a franchise. Once upon a time, companies didn#146;t franchise their operations until they had dozens of outlets going in different parts of the country, so you knew you were buying a #147;sure thing#148;. With franchising so popular now, fueled by middle-aged downsized executives looking to buy themselves a job, more and more franchises are being launched before they have had the chance to test and prove their business model. The result often is a lot of unhappy franchisees.
While franchises are required to deliver a Uniform Franchise Offering Circular to prospective franchisees disclosing certain facts about the franchise and its business, they are not required to disclose any information about their reputation. This is something you have to do yourself.
Remember Ennico#146;s Rule: when buying a franchise, gossip, hearsay and innuendo is far more important than hard data. Some of the best information you can learn about a franchise will come from sources that will not want to be quoted.
You should talk to as many franchisees as possible and ask them if they were happy with their decision. In my experience, it#146;s hard for people to hide it when they#146;re really unhappy #150; be sure to watch their facial expressions and listen to the #147;music#148; in their voices as well as what they tell you. You should also ask the franchise for a list of ex-franchisees (the franchise is required by law to disclose this to you), and talk to all of them. You should also visit 2 or 3 franchisees in person and spend the day looking at what actually happens in their business.
But what about a franchise#146;s reputation? There is absolutely no excuse for not #147;Googling#148; the franchise and finding out what people are saying about it on the Web. The process takes about five minutes. As for local reputation, call the local Better Business Bureau. Visit the nearest library and chat up the librarians when they#146;re not busy #150; they tend to know a lot that goes on in their community. And if they don#146;t, ask the old men sitting in the magazine section (in most libraries, there are always old men sitting in the magazine section).
Of course, it#146;s too late for you to do that now that you#146;ve forked over the money. Most franchises will not give you your money back under any circumstances, and this is usually stated very clearly in the franchise agreement. The concept is that the franchise incurred significant expense by training you in the franchised business, as well as an #147;opportunity cost#148; by turning away other prospective franchisees once you signed on board. In practice, however, many franchises will give you at least some of your money back if you yell and scream loudly enough. This is because they are concerned you will complain to other franchisees about how unfairly you were treated, and the franchise will want to keep #147;peace in the family#148;.
Keep in mind, though, that if the franchise does refund your money, you will have to sign a noncompete agreement saying you will not engage in the same business as the franchise for a number of years. By claiming a refund you may be locking yourself out of the real estate business entirely. Make sure it#146;s worth the tradeoff.
Given the #147;hard sell#148; this franchise apparently gave you, I wouldn#146;t expect them to be very flexible. You have clearly been too gentle in negotiating with these sleazeballs, and you now have an uphill fight ahead of you. If you#146;re not comfortable playing hardball at this point, hire an attorney to act as your #147;bad cop#148;. A couple of nasty letters threatening litigation should get these guys to the bargaining table.
Cliff Ennico (
cennico@legalcareer.com
) is a syndicated columnist, author and host of the PBS television series 'Money Hunt'. This column is no substitute for legal, tax or financial advice, which can be furnished only by a qualified professional licensed in your state. To find out more about Cliff Ennico and other Creators Syndicate writers and cartoonists, visit our Web page at
www.creators.com
. COPYRIGHT 2004 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE, INC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:42:41Z
Working Moms Declare Freedom from Traditional Jobs : Seven Steps to Home Business Success
Staff
http://www.DrLaura.com/b/Working-Moms-Declare-Freedom-from-Traditional-Jobs-:-Seven-Steps-to-Home-Business-Success
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2010-05-07T08:42:40Z
2010-05-07T08:42:40Z
Staff
2010-05-07T08:42:40Z
Welcome to Stay-At-Home on DrLaura.com
Staff
http://www.DrLaura.com/b/Welcome-to-Stay-At-Home-on-DrLaura.com
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2010-05-07T08:42:39Z
2010-05-07T08:42:39Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Welcome to Stay-At-Home on DrLaura.com
The most frequently asked question on my radio show is "How can I become a stay at home mom?" So, in response to everyone who wants to know the steps to take to stay home or for parents who need moral support, tips or advice, we are debuting a new section on my website, devoted to YOU and your needs. You'll find success stories from parents who are committed to staying at home and making it work-- they'll tell you in their own words how they did it.
You can also get ideas and information on how to make money at home to supplement the family income, as well as seminars, associations and more!
I promise you, you'll want to keep visiting my website for new tips and to read about people like Lisa Barnes, who started Baby Bee, Inc. Lisa found a way to stay at home and to help less fortunate children at the same time.
There are only two types of mothers. The ones who happily stay at home and the ones who wish they could.
Will Rogers once said, "Even if you're on the right track, you'll get run over if you just sit there." I hope my website will be the vehicle to help you take charge of your life.
So if you stay at home or just dream about being home with your little bunchkins take a look at the entire Stay-At-Home section on my website.
-- Dr. Laura
Staff
2010-05-07T08:42:39Z
Summertime Blues
Staff
http://www.DrLaura.com/b/Summertime-Blues
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2010-05-07T08:42:39Z
2010-05-07T08:42:39Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>SUMMERTIME BLUES
By Cheryl Gochnauer
We just came through tax time, but there's another financial hurdle rightover the horizon for working parents of elementary students: summer break.For most families, daycare costs will skyrocket once the kids need care 10to 12 hours a day, instead of simply before and after school. This monetaryreality can trigger depression in those moms who don't want to work outsidethe home, anyway.
I spent six years as a working mother who wanted to be home with mychildren. Like so many of my peers, I figured that since we were barelymaking it on two incomes, we'd go under if I quit my job. However, anunanticipated conflict between a sick child and a big project at work forcedme to take a serious look at our financial situation. Could we afford forme to become a stay-at-home mom?
I was as surprised as anyone when I realized that, after subtracting all thecosts associated with my job (childcare, transportation expenses, eatingout, business clothing, taxes, etc.), I was only clearing $39 a week. Thecalculations I used included daycare charges for my first grader (before andafter school) and my 2-year-old (all day). During the summer, I actuallywasn't making any money at all, since that $39 a week was easily erased byincreased daycare costs for my older child.
Was I nuts? No. I didn't know I was working for free from June toSeptember, because I'd never done the math. If you've been consideringbecoming an at-home parent but think it will never work financially, Iencourage you to learn from my mistake.
Check your own figures now
.
Beyond the actual dollars and cents, be sure to take into account theemotional cost of allowing someone else to care for your babies when youwant to do that yourself. Also, if you're one of the ladies with latchkeychildren who gets nervous between 3 p.m. and 6 p.m., you're going to have anextremely difficult time leaving your older kids alone all day for nearly 3months. So be sensitive to your feelings and to those of your children.
My becoming an at-home parent relieved so many pressures in the Gochnauerhousehold, not the least of which was worrying about what to do with thekids over the summer, and how to pay for it. Although I am the first toadmit that this lifestyle is not for everyone, it has been a great move forus.
Before you start singing the Summertime Blues, look at all your options, andsee if, as was true in my case, there is a Plan B that will work better foryour family.
Comments? Write
Cheryl@homebodies.org
or visit her website at
www.homebodies.org
.
Copyright 2001
Homebodies.Org
, LLC. Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:42:39Z
Your REAL Take Home Pay - Weighing the Costs of Working Versus Staying at Home
Staff
http://www.DrLaura.com/b/Your-REAL-Take-Home-Pay---Weighing-the-Costs-of-Working-Versus-Staying-at-Home
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2010-05-07T08:42:38Z
2010-05-07T08:42:38Z
Staff
2010-05-07T08:42:38Z
Scam Alert
Staff
http://www.DrLaura.com/b/Scam-Alert
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2010-05-07T08:42:36Z
2010-05-07T08:42:36Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Scam Alert
By Cheryl Demas
We've all seen the ads that claim to be hiring home workers. Beware, many of them are scams. Here are some warning signals that will help you weed out the scams from the legitimate jobs.
They ask for money.
They may claim that you need to send money to "show you are serious" or "to cover our costs." This is a giant read flag! Don't do it! You should never have to pay someone to work for them. Getting hired to do a job is different from starting a home business. You may have to pay for a starter kit when you begin many direct sales businesses, but they should be very clear about exactly what is in your kit: what you're getting for you money.
Ads that emphasize WORK AT HOME but are vague about the actual work you will be doing are another danger area.
They may say that you will be selling "reports" or typing "orders," but again, they are vague regarding the actual products or services.
Ads for assemblers.
You will have to pay to get your supplies (first red flag), but here's the big catch. In assembly scams, the company has to approve the work you do. They might approve your first or second batches, but after you purchase a large amount of supplies, your work will be rejected because it's "full of flaws," and you will be stuck with your expensive supplies.
Ads for envelope stuffers.
Just don't do it. Think about it. Why would anyone pay $2 to $3 to someone simply to put paper in an envelope and apply a stamp? They won't. Most often, after you pay for your supplies, you will be instructed to place ads recruiting others to stuff envelopes. The envelopes you will be stuffing will be the letters you send out trying to sell others on the same scam you just fell for.
The ads claim that "No experience is necessary" and "Make easy $$$$."
Of course there are jobs that offer on-the-job training, but the majority of employers prefer someone with skills and experience. If they lead their ad with these come-ons, watch out. It's another warning signal.
Excerpted from "
The Work-at-Home Mom's Guide to Home Business
" by Cheryl Demas. Permission granted for use on drlaura.com.Cheryl lives in California with her husband and two daughters. She is the publisher of
WAHM.com
-- the online magazine for work-at-home moms.
Permission granted for use on DrLaura.com
Staff
2010-05-07T08:42:36Z
So You Want To Work At Home? Here's How To Convince Your Boss
Staff
http://www.DrLaura.com/b/So-You-Want-To-Work-At-Home--Heres-How-To-Convince-Your-Boss
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2010-05-07T08:42:34Z
2010-05-07T08:42:34Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>So You Want To Work At Home?
Here's How To Convince Your Boss
by Karen Millard
Assuming your employer doesn't have a telework policy already in place, you'll need a plan of action. Despite its growing popularity with employees, many managers are still suspicious of the concept. The trick to getting the go-ahead to work at home is to present a compelling proposal that looks at the arrangement through the managers' eyes. What risks does telework present to the organization? What might the benefits be? And what makes you the perfect candidate?
Risk #1: Will you deliver?
The number one concern for most managers is: how do I know you'll work as hard at home as you would in the office? Won't you be distracted by the:(check as many as apply) soaps, fridge, laundry, neighbors, children? In your proposal, you'll need to demonstrate that you have the personality and work ethic of a successful teleworker. You must be able to answer 'yes' to the following:
Are you well-organized?
Are you disciplined and self-motivated?
Do you consistently meet your goals?
Are you proficient in information and communication technology (ITC)?
Do you have great time-management and communication skills?
Do you have a strong performance record?
Do you have a supportive family?
Do you have an area in your home that can be converted to office space?
Have you made arrangements for childcare? Or are your children old enough to be self-sufficient?
In addition, you'll need to answer 'no' to these:
Do you need a lot of social interaction?
Are you easily distracted?
Do you need a lot of supervision?
Risk #2: What will it cost?
Telework depends on technology. A computer, printer, separate phone and fax lines, pager, cell phone. If you don't already have what you need, your employer should provide it. If you already own it, say so. Just be sure it's up-to-date and reliable.
There are other costs too, such as long-distance phone calls that may have to be covered.
Risk #3: How will I reach you? How will important clients get in touch?
"Hello! You've reached the voice mailbox of... I'm teleworking today. Please leave a message and I'll call you back."
What? After you've prepared the spaghetti sauce? Your boss needs to know you can be contacted at all times, especially if your work involves any kind of customer service. Explain that you'll have your calls forwarded to your home office and that you'll pick up. Make arrangements to check in with the office as frequently as your boss requires. You can suggest regular project updates by phone, fax or email; or a brief telephone check-in at the start and end of every work day. Whatever you agree on, make sure your boss knows you'll be as available at home as you were at the office.
Now The Benefits.
Benefit #1: Telework reduces absenteeism.
In a study released in 1999, the International Telework Association and Council (I.T.A.C) concluded that healthy employees often miss work due to family and personal obligations that can only be met during the business day. Teleworkers are still able to get some work done, even on days when they have appointments to attend. Employers can save 63% of the cost of absenteeism per teleworking employee, or $2086 per employee per year.
Benefit #2: Telework increases productivity.The I.T.A.C study reported an average productivity increase of 22% per day worked at home.
Other studies show equally positive results: American Express teleworkers produce 43% more business than on-site workers; Compaq reported productivity increases ranging from 15 - 45%; JDEdwards teleworkers are 20 - 25% more productive than JDEdwards office workers and ATT teleworkers work five more hours at home than ATT office workers.
Benefit #3: Telework increases employee retention.
A key concept of telework is the ability to better balance work and family life. It's an option more and more employees are demanding. A telework arrangement allows the organization to increase employee satisfaction, morale and productivity.
The I.T.A.C survey concluded that for every teleworker retained by the organization, the employer avoids a cost of replacing that employee of $7920 per worker.
Benefit #4: Telework saves money. Lots of it.
There are other cost savings too. Make sure your boss knows about them. Telework, according to PC Magazine, can cut corporate real estate costs by 25 - 90%. IBM US reportedly cut their costs by 40 - 60% and ATT has saved approximately $550 million since 1991 by eliminating or consolidating office space no longer needed.
The Proposal.
Now that you understand and can address your manager's concerns, you're well on your way to crafting a convincing proposal.
Start by briefly reviewing the reasons you want to work at home. Concentrate on quality of life issues, and productivity. Although most mothers cite the ability to care for their children at home as a reason for wanting to telework, it's not one that's likely to win much approval from your boss.
Spend more time outlining how your working at home can benefit the organization. Will your productivity increase? Will you free up office space? Can you work when others may not be able to?
Make a case for yourself. Just as you would in a resume, stress the character traits, skills and accomplishments that make you the perfect candidate for telework.
Next, address the logistics. Explain where and when you'll work. How many days a week? Whether you envision a return to the office at some point, or whether you see this as a more permanent arrangement. Suggest a schedule for checking in and provide your pager numbers, phone and fax numbers and email addresses.
Show how you plan to remain a part of the team. Will you attend weekly meetings, for instance? Or will you offer to help out on-site during emergencies?
Outline the equipment you already have, and anything else you may need to do your job efficiently. Explain that any costs will be more than offset by the savings.
Try and quantify the work you do. How many hours do your projects take you to complete on-site? How many sales calls do you make or receive at the office? Using this information, offer your employer a list of reasonable work at home goals that can be used to evaluate the success of the arrangement.
The Escape Hatch.
Finally, if your boss still isn't comfortable with the idea, suggest a trial run. When Marie-France Revelin began working at home, it was on a part-time, trial basis, even though her job involved promoting telework within her own organization.
An escape hatch also allows you a gracious way out if you decide you miss the social interaction of the office, or you find you're unable to separate work from family time.
The Last Word...
is "telework." The trend began with employees wishing to avoid a long commute and free up more time for personal pursuits. Consequently, the term used to describe it was "telecommute." Some experts think that part of the reason telecommuting has been slow to catch on with employers is that the term itself emphasized the personal benefits, rather than the benefits to the organization.
Perhaps because it implies the accomplishment of business objectives, "telework" is the term to use today. Where "telecommuting" was about avoidance, "teleworking" is about accomplishment. Show your boss you're serious, use the right expression, and your dream of working at home will become a reality.
Teleworking Resources:
WAHM.com Jobs Page
New teleworking jobs are added every day. Plus links to job search sites where you can search for jobs requiring your specific skills.
www.telecommute.org
Internet home of the International Telework Association and Council. (I.T.A.C) Use the pop-up list to navigate the site. Lots of great links and checklists.
www.ivc.ca
One of the most informative and comprehensive telework sites on the Internet. Articles and advice for teleworkers, telemanagers and wanna-be's. Well-designed and easy to navigate.
www.joannepratt.com
Joanne H. Pratt is the author of the I.T.A.C's 1999 telework survey. Her website is packed with information and advice, ranging from how to know if you'd make a good teleworker, to how to maintain a professional image when you work at home.
Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:42:34Z
Ten Questions to Ask When Considering a Direct Sales Home Business
Staff
http://www.DrLaura.com/b/Ten-Questions-to-Ask-When-Considering-a-Direct-Sales-Home-Business
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2010-05-07T08:42:33Z
2010-05-07T08:42:33Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Ten Questions to Ask When Considering a Direct Sales Home Business
By Cheryl Demas
If you need extra income, a flexible work schedule, and you like the idea of owning your own business, you might want to consider joining a direct sales company. There are hundreds of companies to choose from, offering a wide variety of products. But there are also things to watch out for, so use this list to ask the right questions.
Do you love the products?
Don't think only about the company's commission plan. Think about the products. It is better to make a 25% commission on a product you can sell than a 50% commission on a product you can't sell. Ask yourself, "Would I buy these products even if I wasn't involved with the company?" To be an enthusiastic salesperson, you have to believe in your products.
Do you know exactly what you will receive in your starter kit?
Most direct sales companies have a starter kit that new representatives must buy. The costs can range from $20 to over $200. You should be given an inventory of exactly what your kit will include before you send your money. The contents should also be listed in specific details. For example: "You will receive 50 full color, 25 page catalogs and 25 tri-fold opportunity brochures" not just "sales materials".
Is the starter kit a good value?
If you are told that you will be getting a kit worth $300, add up the contents and make sure you're getting your money's worth. Some companies may include an instructional video that they claim is worth $50, or forms that you could buy yourself for much less. The company shouldn't be making money on their starter kits. Do the math.
Is there a clear return policy?
Be sure that you can return your starter kit if you aren't satisfied, and that you can also return unsold inventory. Some companies specify that items you return must be in reusable condition. Be sure you know what they mean by "reusable." It may mean that your kit or products have to be returned unopened. So ask specific questions about the company's return policy.
What is the "buzz" on the company?
Search the Internet for the company and ask questions on bulletin boards. Look for forums of people who used to be involved with this company. Find out what they're saying and listen to the reasons they left the company. You can't beat the voice of experience. People who are trying to get you to sign up have a financial interest in getting you to join their company; you need to also talk to people who can give you an unbiased opinion.
Is the company a member of the Direct Sales Association (DSA)?
Every member company of the DSA pledges to abide by the DSA's code of ethics. It is a good place to start a search for reputable companies:
http://www.dsa.org
What is the minimum amount of sales you must achieve each month to remain active?
Many companies require a certain dollar amount of personal sales that must be met each month for you to receive your commission checks. Find out if your company has such a policy and what their personal sales goals are.
How much will you have to sell to make a decent profit?
Set income goals for yourself and calculate how much you will have to sell to reach your goals. Also calculate how much of your time will be required to complete a sale, and then calculate your hourly rate. For example, if you present a 2-hour home party and make a $100 profit, you may think that you've earned $50/hour. However if you spent 5 hours recruiting a hostess, preparing your presentation, mailing invitations, and making follow-up calls, then 2 hours on the actual night of the party, and 3 more hours of follow-up and product delivery, your hourly rate would actually be $10/hour. Still not bad, but you need to consider all the tasks that will require your time when you're looking at an opportunity.
How long will it take to establish a profitable business?
Every business has a startup phase. Calculate what your startup expenses will be and how long you estimate it will take you to build up your customer base and start making a profit. It's important to have a realistic picture and a plan for your business so you won't get frustrated as you begin your business. You will be able to look at your plan and know that there is light at the end of the tunnel.
Will there be pressure to recruit other sales representatives?
Direct sales organizations are often set up so that you make a commission on the sales of people you have recruited to become representative themselves, this is known as your downline. This is also called Multilevel Marketing (MLM) or Network Marketing. Many legitimate companies use this method of payment, but some may encourage you to use high-pressure sales tactics to recruit your downline. Your income should be based on sales of actual products, and perhaps eventually the sales of those in your downline. But your focus should not be on recruiting others. Find out if you can earn a decent amount through your own personal sales, or if you will be expected to recruit others.
Many moms have found great success running their direct sales home businesses. They appreciate the freedom and flexibility it gives them to earn income while staying home with their children. If this sounds good to you, take your time, research the opportunities, and ask questions. Curiosity may have killed the cat, but it will save you a lot of headaches.Cheryl Demas has published her web site:
WAHM.com
the Online Magazine for Work-at-Home Moms, since 1995. Her book
"The Work-at-Home Moms Guide to Home Business" is available online
or at your favorite bookstore. Cheryl lives in California with her husband and two daughters.
Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:42:33Z
Van Antwerp Pottery - Christina Anderson - Testimonial
Staff
http://www.DrLaura.com/b/Van-Antwerp-Pottery---Christina-Anderson---Testimonial
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2010-05-07T08:42:32Z
2010-05-07T08:42:32Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Van Antwerp Pottery - Christina Anderson
testimonial
For ten years, I had worked 40 -60 hrs/week at ahigh paced photo lab, while my two small childrenlived at daycare. I told myself that this was the bestsituation for everyone. My family would have a house,a good car, new clothes, savings and extra money todo things with as a family. But, being raised myself bybaby-sitters and daycare, I had always dreamed, as ayoung child, of being home everyday with my mom ordad. As nice and loving as the people who baby-sat forme were, nothing was as good as my own mother.Remembering my own childhood yearnings and watching my2 small children go down the same road I had gonedown, I decided to turn things around. I wasdetermined to give my kids what I had, as a child sowished for; a full time mom. At the age of 30, thatchildhood dream became my goal for my own kids.
The sacrifices my husband and I have endured inorder for me to stay at home were beyond the credulityof dual income families. We had no cable, never wentout to dinner, had no vacation, no magazinesubscriptions, no new clothes unless absolutelynecessary. But we were a happy family, and I knew mykids#146; every thought, action, need and secret. I wasmom 24 hours/day. What a privilege!
Eventually, our living expenses started to rise andmy husband's income remained the same. I knew I had todo something with out giving up my new foundobligation to my kids. With an interest and someexperience in pottery, and a 2 hour gap of free timewhen my kids napped, I knew I could make some money.
Van Antwerp Pottery was soon created! I started atthe library. I read every book there was on pottery,marketing and small businesses. I visited localpotters, only listening to the optimistic ones (Ilater learned they were also the successful ones). Atthat point I knew what I needed to start: clay, a kilnand a wheel. I found everything 2nd hand.
I practiced during my kid's nap time and at nightuntil I had a line I thought people would want. I thenapproached almost every gift shop in my adjoiningneighborhoods until I had one store in each town whoagreed to buy my pottery wholesale.
Customers soon started making requests for differentpieces and colors, so I adapted my line accordingly. Idecided whatever the customers wanted, I woulddevelop that product as part of my line. They werealways right!
Now, 4 kids and 8 years later, I am a successfulbusiness mom! My grungy, dark basement has become abright, efficient workshop. I have 4 salesrepresentatives in NY state and WV who do all theselling for me. I also set up a web site to sellretail. (
www.vapottery.com
)
There will always be those trying times when I havea big job to get out, and that emergencyparent/teacher conference, but I found that once yourpriorities are set, the solutions are close at hand!As St. Catherine of Siena says, "Nothing great wasever done without much enduring."
Christina Anderson
Christine's daughter designed pencil holders specifically to help The Dr. Laura Schlessinger Foundation in which 50% of the proceeds go to the foundation. To view/purchase those:
Donations and Fund Raising at www.vapottery.com
Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:42:32Z
The Mop Flops Story
Staff
http://www.DrLaura.com/b/The-Mop-Flops-Story
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2010-05-07T08:42:31Z
2010-05-07T08:42:31Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>The Mop Flops Story
By Gaile Spalione
I became a stay at home mom upon the birth of my first daughter in 1986. It was never planned that I would give up my paying job, so of course we were not financially prepared to cut our income in half. But the moment I held her, I knew I couldn't leave her.
I used to roll pennies to go grocery shopping. We gave up a car, so I used to ride the bus with a baby and a bag of rolled coins. I was always looking for ways to make a little extra (with my baby by my side), and I did start up a little side business along the way. (But that's another story!) My most important job was being a mom (and housewife).
I soon became the mother of four. So, it seemed for years I had crawlers and toddlers in my home. Believe it or not, I am not crazy clean....as some assume by my invention. However, it did bother me to have my babies crawling around on a dirty floor. This led to my constant washing of my floors. My last daughter was the most attached (still is), and maybe because she's my last baby...I too was more attached. I mean literally....I held her 20 hours out of 24 a day!! This made my floor maintenance quite difficult. So I progressed to towels all over the floor and I would shimmy around with a baby on my hip.
Since I sew, I eventually took some old towels and made them into booties so I would no longer have to hop and shimmy around the kitchen floor. Now I could wear my booties around the kitchen and spot clean as I go! This cut down tremendously on big mopping jobs. It prevented muddy prints when water dripped from the sink or dishwasher (or refrigerator ice maker...or dog bowl... and who knows what else)! I also loved wearing them when I did mop so I could walk all over the wet floor. I was no longer restricted to working my way out of the kitchen. I could even go back in and retrieve anything if needed. (Also, my kids love wearing them and playing on the floor with a squirt bottle!)
My friends and family loved the idea and asked for their own pairs. I began sewing more and perfecting them by lining them in vinyl and adding a pocket for towels or sponges or whatever! And, well, as I said in the beginning I'm always looking for ways to make a little extra, so I decided to invent MOP FLOPS! I have a lot of people who believe in me and MOP FLOPS, especially my parents. Even though, they work two jobs each themselves to make ends meet, they mortgaged their home to help me get started. We have just gotten the official Patent from the US Patent office this past October and are currently trying to market on a restricted budget, since of course I am still a stay at home mom struggling to pay the bills and buy shoes and braces for four. I am currently selling MOP FLOPS at the local swap meet and by word of mouth.
You can also order MOP FLOPS from my website....check it out!
www.mopflops.com
and a portion of the proceeds will go to the Dr. Laura Foundation for neglected and abused children. Permission granted for use on DrLaura.com
Staff
2010-05-07T08:42:31Z
What's On Your Desk? Top 25 Clutter Culprits in the Home Office
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2010-05-07T08:42:30Z
2010-05-07T08:42:30Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>What's On Your Desk?
Top 25 Clutter Culprits in the Home Office
By Amanda Formaro
According to a recent poll conducted amongst busy parents who operate their businesses out of their home, clutter is an ongoing problem in search of a solution. Between business calls and diaper changes, these parents do all they can for their families while busily earning their income that allows them to stay home. Unfortunately, something has to suffer. If it's not their family life or their thriving businesses, then who? In this case it's not a "who", but a "what". You guessed it... their desks.
Top 25 Clutter Culprits in the Home Office
#25) tools; screwdrivers, screws
#24) articles of clothing; socks, children's underwear, t-shirts
#23) electronics; radios, walkmans, mini TV's, video camera
#22) keys
#21) aromatherapy; candles, rooms spray, essential oil
#20) bank statements/bills; misc papers, applications, insurance
#19) books
#18) household cleaners
#17) magazines/newspapers; full or clippings
#16) music CD's
#15) purse/wallet
#14) receipts; ATM, grocery store, credit card
#13) shoes
#12) make up, hair brushes, hair accessories
#11) photos; loose and in albums
#10) medicine; creams, pills, ointment, sprays, sunscreen
#9) baby items; diapers, wipes, bottles, hygeine
#8) coins, money, loose change
#7) camera/film
#6) toiletries; toothpaste, soap, toothbrushes, toilet paper, kleenex
#5) dirty dishes utensils
#4) food, edible or otherwise
#3) kid's papers; school literature, artwork, coloring books, markers, crayons, stickers
#2) toys
And the Number One (by an overwhelming margin) cause of clutter on the desk of a work at home parent is...........
GARBAGE; candy wrappers, scraps of paper, popsicle sticks, used kleenex, broken crayons, unidentifiable objects, empty bags, etc.
What's on your desk?
This question was asked in the
WAHM.com Question of the Week
.
Amanda Formaro lives in Wisconsin with her husband and four children. She is the publisher of
familycorner.com
magazine.
Permission granted for use on DrLaura.com.
Staff
2010-05-07T08:42:30Z
How to Look For and Get Legitimate At-Home Work From an Employer in Your Area
Staff
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2010-05-07T08:42:27Z
2010-05-07T08:42:27Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>National Association of At-Home Mothers
Info Guide #22
How to Look For and Get Legitimate At-Home Work From an Employer in Your Area
Maybe you#146;re a new mom, amazed and drawn to the joy of motherhood at a level deeper than you ever imagined. You can#146;t bear the thought of returning to your job after nine short weeks of maternity leave. Or maybe you have returned to work, your children are a little older now, and your dream of at-home motherhood is calling you just as strongly as the day you gave birth.
It#146;s the modern day dilemma for moms in the outside working world.
Often, while your heart keeps pleading for you to stay at home, your head keeps talking you out of it. You can#146;t afford to quit your job and give up the income, right? Well, maybe not.
Today, quitting your outside job doesn#146;t necessarily mean having to give up an income. For the entrepreneurial type, the good news is small home businesses are on the rise, and there are an array of resources to help you get started. But what if you#146;re not the entrepreneurial type. Maybe investing in your own home business isn#146;t an option, or it might be that you work best within the structure that corporate American provides. But is working for an employer from home really a possibility?
Believe it or not, corporate downsizing has actually increased your opportunities for working for an employer from home. Work usually done by full-time employees is being contracted out, and the need for part-time and/or seasonal work has grown.
More than ever before, earning a livable income from home is possible, including doing work for an employer. With a sincere effort on your part, some help from sources you#146;ll read about in this Info Guide, and, of course, determination to follow your heart#146;s desire, you can stay at home and still earn the income you need.
Where Do You Look for At-Home Work Opportunities from an Employer?Below are some ideas to help stimulate your thinking and point you in a direction that can help you uncover work-from-home opportunities from employers near you. Be sure to enlist your own creativity. Where else might you look; what other talents, skills, or hobbies do you have that you personally use but haven#146;t applied to a job setting yet; what other benefits of a work-at-home arrangement can you present to a potential employer to gain their interest in giving you a chance?
Just a line of caution: what we are talking about is working for an employer that has offices in your area. We are not endorsing independent work-at-home, assembly-type or other work offered nationally by companies that may or may not have an office in your area.
Classified, Help Wanted, or Employment Ads
One of the most obvious places to check on what kind of work is available in your area is in the classified advertising section of area newspapers and shoppers. You#146;ll probably find that most often an employer wants you on-site. However, some employees can be persuaded to hire you on your terms, working from home, if you have the skills they are looking for, and the work lends itself to this arrangement.
Personnel Departments at Major Local Employers
Call and talk to people in the personnel departments of the larger employers in your area. Find out which ones are open to alternative work options for their employees. Find out what kinds of skills they#146;re looking for, and about the need for contract work.
Past or Current Employers
Be sure to explore all the options that might be available to you in your current job, or jobs past. If you have been a reliable, contributing employee, chances are good that you boss will listen to your ideas for working at home rather than risk losing your valuable skills.
Network
Ask your relatives, friends and neighbors about employers they#146;re aware of that are in need of help and/or are open to alternative work options. Once your family and friends are aware of what you are trying to do, they#146;ll also be on the look-out for an opportunity for you.
Mailing Services / Fulfillment Houses
Many businesses offer assembly/production-type piece work. And many times, this is work that can be taken home. Check with businesses that produce parts, fulfill orders, or provide mailing services for other larger businesses. Sheer volume often forces these types of businesses to look for help however they can get it, and they remain flexible to varying work options. As you consider these businesses in your area, also keep in mind which ones may have seasonal pushes, i.e., especially busy during Christmas, springtime, and/or other times of the year.
Printers / Publishers
Again, volumes of material produced by printers and publishers often leaves employers in this industry flexible to work options that include at-home work.
Schools and Universities
I you are skilled at work processing, you might consider checking with local schools and universities on the need for contracted services. You could help them with processing their own paperwork, or be available to students or faculty who need typing assistance for a research project or thesis paper, for example.
Temporary Agencies
Check with temporary agencies in the area about their work-from-home opportunities. Temporary agencies are a good source for finding part-time work that can later be turned into a work-from-home situation after proving your value and negotiating such an arrangement.
On-line Employment Agencies
You may be able to find a job with a local business on-line, with the many job opportunity Web sites, but the chances are slim. More likely you#146;ll find various computer-related jobs such as telecommuting, research, Web site board or #147;channel#148; moderators or developers, etc. There are legitimate jobs on-line, but remember, the same opportunity scams that are in the newspapers are on-line, plus more! You must be very cautious, and check-out both the opportunity and the business carefully through the Better Business Bureau, Attorneys General, etc. Unfortunately, you may not easily find a mailing address, etc. Insist on this type of information plus references before getting involved.
Ask, Ask, Ask!
Ask everybody and anybody you get into conversation with, who they know of that might need your help and would be open to talking to you about work options. Jack Canfield and Mark Victor Hansen in their book,
The Aladdin Factor
, suggest asking according to the following principles:
Ask as if you expect to get what you want.
Ask someone who can give you what you want.
Be clear and specific about what you want.
Ask from your heart.
Ask with humor and creativity.
Give in order to get.
Ask repeatedly.
And, most importantly, keep asking! You have nothing to loose and everything to gain; all the while you are asking, you are increasing your odds of finding just the opportunity you#146;ve been looking for.
Consider the list you#146;ve just read a start. Nothing can replace your own ingenuity and the knowledge you have of the business community in which you live. Hopefully the above suggestions have stimulated your thinking and have given you the push you need to begin your search. Your greatest ally in reaching your dreams is your own personal desire and commitment. If you want it bad enough, you can make it happen. Simply keep focused on your goal, through the valleys as well as the peaks, and leave no stone unturned until you have landed that at-home job you have worked so hard to get.
Preparing Yourself for Getting At-Home Work
Write a resume similar to one you would prepare for any other job. List your technical skills and experience, of course, but be particularly sure to stress qualities that reinforce your ability to be as productive from home as the work site: reliable, highly self-motivated, efficient, independent worker, trustworthy, focused, goal-oriented, etc. Don#146;t forget to include references that will verify not only your technical abilities but your valuable personal qualities as well.
Include a cover letter that lists the advantages of hiring an at-home employee. Some of the advantages include:
Studies have shown improved productivity by 15-20%.
Reduced cost of office space and equipment.
Improved morale, which consistently raises performance. At-home workers are pleased with their work arrangement, which shows in the quality of their work.
Improved management skills and outputs result from creating clear goals, measuring results, and managing work and time.
Access to new labor pools. The skills a company needs aren#146;t always available if full-time, on-site employment is the only work option.
Less office socializing and wasting of time and money.
Reduced turnover. At-home workers value their work arrangement.
Reduced cost of training due to turnover.
Reduced need for parking and other logistical concerns.
Bottom line: Work-from-home saves money when planned and managed properly.
Also, stress your flexibility to drop-off, pick-up, attend important meetings, work on a trial basis, etc.
Advertise yourself! Placing a classified can be an inexpensive way of gauging what#146;s out there. Your ad may read something like, #147;Highly skilled, highly motivated worker looking for flexible work option. Benefits are: increased output, quality, and productivity. To discuss, call me personally at 123-4567. Jeann.#148; Make the ad personal by listing your specific skills and include the benefits you think sell your offer the best. You may even use classified advertising to advertise the varying skills representing a network of mothers looking for at-home work (see #4 below).
Consider forming a network of mothers who are all seeking at-home work. With the power of numbers in everyone#146; favor, the network acts as a marketing force, where everyone is looking for opportunities for everyone else. You can also advertise the collective skills of the group, and pass along work between each other when a project requires many hours and/or different sets of skills.
Going the Extra Mile
You#146;ve worked all the angles, remained persistent, and have finally landed the work-from-home opportunity you set out to get. The hard part is over, right?
Basically, yes. But to insure that all your hard-fought effort doesn#146;t slip between the cracks, you need to go the extra mile in carefully managing your work arrangement and boss#146;s satisfaction as closely as the work itself.
Include regular communication with your boss as a part of your work schedule. Checking in on a consistent basis to talk about how things are going and to identify any problems, helps you avert anything that could jeopardize your job. And continue to sell yourself by gently reminding your boss from time to time of the benefits the company is gaining from this work-from-home arrangement.
###
In the end, it#146;s up to you. Finding a work-from-home job arrangement and then following through with the work in a way that pleases the company will take time and determination on your part. Be with a strong desire in your heart and your goal clearly focused in your head, you can build a lasting work-from-home arrangement and live the at-home motherhood lifestyle you#146;ve been dreaming about.
copy; 1998 National Association of At-Home Mothers. All rights reserved. Permission granted for use on drlaura.com This
Info Guide
was provided by
AtHomeMothers.com
where you#146;ll find complete support and practical information for the at-home motherhood lifestyle, including the
National Association of At-Home Mothers, At Home Mother
magazine, and much more!
Permission granted for use on DrLaura.com
Staff
2010-05-07T08:42:27Z
The 20 Best Home Businesses For Moms
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2010-05-07T08:42:22Z
2010-05-07T08:42:22Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>National Association of At-Home Mothers
Info Guide #G37
The 20 Best Home Businesses For MomsThat You Can Start For Under $100
by Priscilla Y. Huff
For one reason or another, you have decided you want to work from home, but (1) you are not sure
what
kind of business you would like to do and (2) you do not have much money for your home business start-up. Are there any home businesses that fit both criteria? Fortunately, there are. The businesses profiled in this
Info Guide
are ones recommended by entrepreneurial mothers, but
any
business idea can be started up relatively inexpensively if you plan and research.
Generally, the businesses that cost the least to start-up are
service
businesses as opposed to
product-oriented
businesses. A service business is exactly that: doing chores or tasks for individuals and/or companies who do not have the time or knowledge to carry out. Usually a minimum of equipment is needed#151;you are the main facilitator of this type of business. A
product-oriented
business most often requires the purchasing of materials and supplies as well as financing the sales and distribution of your product(s). You are responsible for creation and production#151;which can include mass production, one-of-a-kind, or both.
Some businesses can be conducted almost exclusively from home, while others require part or more time with your clients. If you are a mother, you may need to plan to have some type of child care coverage, especially if your children are small. Possibilities can be your spouse, a relative, a sitter who comes in your home, a drop-in child care center, work during the hours your child is in nursery or school, or taking turns with other mothers who also need time to work or do errands. You may also need a way to meet with customers#151;having them come to your home office or going to meet them at their homes or offices. These are important considerations that you need to deliberate
before
you open your doors. Choose a home business around something you enjoy doing, and one that fits your family situation including the amount of time you have which may depend on your children#146;s ages, etc.
Helpful Tips for Starting Any Business, Regardless of the Start-up Costs:
Do your research to see if there is a demand or market for your business idea#151;with customers willing to pay for your business#146; services and/or products.
Set aside a room or a screened-off corner or space exclusively for your business.
Fit your skills and interests with your business idea.
Decide what skills or experience you may need to obtain or upgrade.
Find a mentor, another home-based business mom, or a home-based business or trade association with whom you can network information and ideas. Sometimes contacting another person in a similar business#151;but in a non-competing region#151;can be the most helpful of all. They can give you tips on what has worked (and not worked) for them, plus other valuable information you can use.
Discuss your venture(s) with your spouse and family. It is much easier to start a business with a good support network than it is without.
Decide how much actual #147;working time#148; you will have to devote to your business and customers. Be honest and realistic with the time you will have available.
Keep organized with your own bookkeeping and files. Consult with an accountant to make sure you know what the IRS (and your state and local taxing authorities) requires of a small business.
Never stop learning about your business, your customers, and from your mistakes.
Keep current by reading newsletters, journals, home and small business publications, and of course, networking with other entrepreneurs.
Develop the quality of persistence. The successful entrepreneur is one who persists until she finds the answer(s) for which she was seeking!
Develop customer loyalty by treating them with respect and giving the very best products and/or service. Never take them for granted. It costs three times as much in marketing expenses to get a new customer than to keep a present customer satisfied.
Keep your business venture in perspective. Cut out or cut back the extraneous activities in your life and save time for you and those you love. Enjoy your new business, but do not let it consume you.
Basic Home Office Essentials:
A #147;bare bones,#148; basic home office set-up can consist of the following:
Equipment: desk or flat work area; chair; equipment needed for your specific business
Office supplies: files, business ledger, pens, pencils, stationery, etc.
Telephone (you can have special rings designated on your home telephone line)
Answering machine
Business cards and/or flyers (you can have a home-based desktop publisher make fewer quantities for less money than going to a commercial printer)
Reference materials: guides, manuals, books, etc. relevant to your business and trade When your business begins to bring in money, you can then add the following essentials:
Computer,* peripherals and business-related software
*
Note:
Though not needed to start most businesses, a computer with business-related software has become almost a standard for
all
businesses. If you cannot afford one, you may be able to start with good, used ones, pay or barter to use a friend#146;s, or even your customer#146;s computers.
Remember, you do not need to know everything there is to know about computers. You just need to know how to use the basic operating procedures of the computer and the business-related software on which you are working!
It will help you, too, to have access to a person who can help you if you run into computer trouble. Often times, this can be your own children!
Fax machine*
Photocopier*
Business stationery
Scanner
Upgrade and/or purchase of additional equipment, etc. needed for your specific business*
Note:
Some of these machines have multi-capabilities such as a plain paper fax machine with photocopying capabilities.
BUSINESSES
These are some of the best low-cost businesses for mothers featured in categories that experts say will be in demand as we enter the next century. However, they are not the only ones and de-pending what equipment you already have and will need, you may spend more (or less) than $100 to get started.
For some businesses a trade association* is listed or some recommended publications or other helpful sources. *Please note: Many of these associations do not have business start-up information and also are often staffed by volunteers, so a LSASE (long, self-addressed, stamped envelope) from you for inquiries would be helpful. As mentioned before, also check your local library and other entrepreneurs for additional information.
BUSINESS SERVICES
In recent years, many businesses #147;downsized#148; their employees in efforts to economize or often as the results of #147;take-overs or buy-outs#148; by large companies. However, in this process, they often let workers go who performed valuable services for them. You can take advantage of this by offering to do these tasks that their remaining employees may not be able to handle or are too over-burdened to perform.
1. BILLING SERVICE
Often times, small businesses or seasonal businesses need assistance with their customer billing as they cannot afford to hire staff and/or only need to do their billing on a weekly or monthly basis. They forget or delay their billing and may fail to systematically check which of their customers has or has not paid. Your billing service could provide accurate, on-time monthly invoices for your clients. You can add collection services to your fees for customers who have overdue accounts.
Resources:
*Sage U.S. Inc.,
Timeslips.
17950 Preston Rd., Suite 800, Dallas, TX 75252. (972) 818-3900.
http://www.timeslips.com
Timeslips
is a popular time and billing program. It has versatile invoicing capabilities and includes a variety of billing arrangements and full customizable bill formatting.
You may also want to specialize in certain types of billing, such as in the health care field.
2. BOOKKEEPING
If you have worked in bookkeeping departments or have had bookkeeping basics in high school or business school, you will have skills valuable to many companies. As with billing, many owners of small, growing companies are overwhelmed by business bookkeeping and do not have the time to do an adequate job or they may relegate a (reluctant) spouse to do this. Small, seasonal businesses many times fit this criteria.
With your bookkeeping business, you can arrange to make regular visits to your customers#146; offices, but do the majority of the work from your home. One tip is to consult with your clients#146; accountants so you know how they would prefer to have the bookkeeping records organized. They may also refer you to other of their clients because you will help make
their
accounting easier.
Resources:
*
Bookkeeping Tax Preparation: Start Build a Prosperous Bookkeeping, Tax Financial Services Business
, by Gordon P. Lewis. 1997, Acton Circle Pub. Co.; ISBN: 0963937170.
3. TRANSCRIPTION SERVICES
A transcription service involves the typing of notes made from recorded records. Many transcriptionists specialize in certain professions: medical and health care, legal, commercial, journalism, investigative reporting, etc. Transcription can also be part of a business service such as a secretarial/word processing service or office support service.
Resources:
*
How To Start a Home-Based Secretarial Business
, 2nd ed. by Jan Melnick. 1997, Globe Pequot Press, Old Saybrook, CT.
*
Transcription Skills for Business
, 5th ed. by Linda Mallison, Lois Meyer, Ruth Moyer. 1997, Prentice-Hall, Englewood Cliffs, NJ.
4. MYSTERY SHOPPING SERVICE
One way small businesses can compete against the huge #147;mega-stores#148; is to offer exceptional customer service. To do this, you can start a mystery or secret shopper service for companies to help them evaluate the treatment of their customers. If you have worked in a certain industry or part of a chain of stores, you can offer this service based on your experience.
Resources:
*Judith Rappold, President, Business Resourcesreg;, 2222 Western Trails, Ste. 107, Austin, TX 78745; Workshops, materials ($599 + $10 shipping for materials only). Send a SASE for info.*Feedback Plus, Inc., 5580 Peterson Ln., #120, Dallas, TX 75240-5157; a company that sends independent contractors to report on companies#146; customer service. Send a SASE for info.*National Shopping Service Network LLC, 3190 E. Evans Ave., Denver, CO 80210.
http://www.mysteryshopping.net
CREATIVE BUSINESSES
5. CANDLES
In almost every household, you will find candles#151;both practical and decorative. They are popular gift items and can be made for every occasion. They can be sold in gift and specialty stores, through mail order, at craft shows, and through the Internet. Candles can be made at a relatively low cost. Some people purchase candles already made and add decorative touches such as pressed, dried flowers to the outside.
If this creative craft interests you, research as to what kinds of candles are being produced, and see what creative ideas you can use to originate your own unique candle line.
Resources:
*
The Candlemaker#146;s Companion: A Comprehensive Guide to Rolling, Pouring, Dipping Decorating Your Own Candles
, by Betty Oppenheimer. 1997, StoreyCommunications, Pownal, VT.
*Barker Enterprises, Inc., 15106 10th Ave. SW, Seattle, WA 98166. (800) 543-0601
http://www.barkerco.com
; $3 for catalog#151;features supplies and books for a candlemaker hobbyist or entrepreneur.
*The Wax House, P. O. Box 103, Mequon, WI 53092; has the book,
Starting A Candle Business
, $12; $3 for catalog.
6. CUSTOM SEWING
The American Home Sewing and Craft Association estimates that more than 21 million people sew from their homes. If you have the ability to sew, you can offer such services as alterations, canvas repair, antique quilt restoration as well as sewing your original creations such as Christmas ornaments, custom slip and chair covers, hats, Christening gowns, prom dresses, chef and barbecue outfits, swim suits, ladies#146; suits, soft toys and sculpture etc., etc!
Resources:
*
The Business of Sewing
, by Barbara Wright Sykes. 1992, Collins Publications, 3233 Grand Ave., Chino Hills, CA 91709-1318.
http://collinspub.com
*
How to Start Making Money with Your Sewing
, by Karen L. Maslowski. 1997, Betterway Books, Cincinnati, OH.
*American Home Sewing and Craft Association (HSA), 1350 Broadway, Suite 160, New York, NY 10018, (212) 302-2150,
http://www.sewing.org
.
7. HANDCRAFTS
Experts in the handcraft field estimate that the crafts industry generates almost $10 billion in annual sales. Depending on your craft, you can sell your crafts retail, wholesale, or one-of-a-kind. The hardest obstacle to overcome is to find that market for your particular product. You will have to do your own #147;test-marketing#148; by trying the different ways to sell your items: craft shows#151;retail or wholesale; galleries; to catalog houses; mail order; custom orders, kits, etc. Keep up-to-date with the latest trends and try to find your own #147;niche#148; market for your crafts.
Resources:
*
The Crafts Report
(magazine for the professional crafter), P.O. Box 1992, Wilmington, DE 19899; 1(800) 777-7098;
http://www.craftsreport.com
*
How To Start a Home-Based Craft Business
, 2nd ed. by Kenn Oberrecht. 1997, The Globe Pequot Press, Inc. P.O. Box 833, Old Saybrook, CT 06475-0833.
www.globe-pequot.com
*
The Craft Business Answer Book: Answers to Hundreds of Troublesome Questions About Starting, Marketing, Managing a Homebased Business Efficiently
, by Barbara Brabec. 1998, M. Evans Co.; ISBN: 0871318326.
FOOD-RELATED BUSINESSES
8. SPECIALTY FOODS
If you have a knack for cooking, canning, or a special recipe that has been in the family for generations, it is possible to make money with your culinary skills or information. You must check with your state regulations on cooking from your kitchen. You may be able to use a church#146;s or organization#146;s kitchen if you cannot use your own. Here are
just a few
of the money-making food businesses that women are running:
Special Desserts#151;selling to caterers, restaurants
Cooking Instructions#151;lessons in your home or your clients
Special Cakes#151;birthday, wedding, novelty
Cookbook Author
Special Condiments
Meals-to-Go for busy families
Resources:
*
Entrepreneur Magazine#146;s
Start-Up Guide, #147;Marketing a Family Recipe.#148; $69.50 + $6.75 shipping, 1(800) 421-2300.
*
From Kitchen to Market: Selling Your Gourmet Food Specialty
, by Stephen Hall, Upstart Publishing Co., Inc., Dover, NH.
9. MENU-PLANNING
If you love to cook and have expertise and training/background in meal planning, you may want to start a menu-planning service for families and individuals on special diets. Plan a month#146;s meals and provide the recipes.
Resources:
*
Menu Celebration! Menu Planning for the Family Every Day of the Year
, by Lee Cannon, Dorothy Wells. 1995, Owl Bay Pub; ISBN: 0963856898.
GREEN BUSINESSES
10. HERBS
With the popularity of specialty foods and cooking, and homeopathic medicines, herbs are much in demand. Herbal oils and fragrances are also being used in aromatherapy. They can be grown in almost all seasons, in greenhouses, sun rooms and/or outdoors in relatively small spaces. Dried herbs can also be sold to crafters and florists for wreaths, floral arrangements, etc.
Resources:
*
Growing Your Herb Business
, by Bertha Reppert, 1994, Storey/Garden Way Publishing, Pownal, VT.
*Herb Growing and Marketing Network, PO Box 254, Silver Springs, PA 17575-0245,
www.herbworld.com
11. SPECIALTY CROPS
Specialty fruits and vegetables will continue to grow in demand as people want to have chemically-free produce and professional and hobbyist chefs look to expand their culinary skills with new recipes. Old and new varieties of peppers, tomatoes, lettuce, and many others are sought out by cooks. Even small plots can be profitable.
Resources:
*
Backyard Market Gardening: The Entrepreneur#146;s Guide to Selling What You Grow
, by Andrew Lee (Burlington, VT: Good Earth, 1995).
*
How to Grow More Vegetables, Fruits, Nuts, Berries, Grains, and Other Crops
, by John Jeavons, Ten Speed Pr; ISBN: 0898157676
HOME SERVICES
12. LAMPS LAMPSHADES
Home decor and home remodeling are popular pastimes for many homeowners. Many people also like to shop at flea markets for good, used items, especially lamps and wood furniture, but often the lampshades need to be replaced or re-covered. If you have basic sewing and mechanical skills, you can have a lucrative home business making lampshades, re-covering old ones and doing simple lamp repairs. Lampshades can be covered by cloth or paper which can be decora-tively pierced.
Resources:
*
Lamps Shades: Beautiful Ideas to Make Decorate
, by Juliet Bawden. 1997, Sterling Publishing, Inc., NY.
* Mainely Shades, 100 Gray Rd., Falmouth, ME 04105; 1(207) 797-7568.
www.mainelyshades.com
*The Lamp Shop, PO Box 3606, Concord, NH 03302-3606, (603) 224-1603,
www.lampshop.com
13. REFERRAL SERVICES
With our hectic lifestyles these days, many people do not have the time or expertise to look for the best personal or home services they may need. A referral service refers people to the busi-nesses and/or professionals they need. These can range from child and elder care to home repair services. You can specialize in the services in which you have knowledge and/or the experience to evaluate their quality. You are paid by the services you list or sometimes by both the business owners and customers coming to you.
Resources:
*
How to Start Manage a Referral Services Business
, by Jerre G. Lewis Leslie Renn. 1996, Lewis Renn Associates, 10315 Harmony Dr., Interlochen, MI 49643. (231) 275-7287
PERSONAL SERVICES
14. CHILDREN#146;S PARTY BAGS
If you love children and enjoy planning for parties, you can give busy parents help by having a children#146;s party business. You can plan the parties and arrange the cake and entertainment, etc., or do the entertainment yourself. Also popular now is to sell all the #147;fixings#148; for the parties (related to popular children#146;s characters or themes) in bags that can be ordered from you in advance containing all the decorations, favors, and even game ideas.
Resources
:*
Child Magazine#146;s Book of Children#146;s Parties
, by Angela Wilkes. 1996, Dorling-Kindersley, NY.
*
Children#146;s Party Business
(booklet), info: SASE to PY Huff, Box 286, Sellersville, PA 18960.
*
It#146;s Party Time: How to Start Operate Your Own Home-Based Party Planning Business
, by M.L. Hine. 1996, Carlton Press, NY.
15. IN-HOME CHILD / ELDER CARE
The need for quality in-home child care and eldercare (with the #145;aging#146; of the U. S. pop-ulation) is predicted to grow in the next century. If you are interested in providing care of either children or mature adults in your home, check with your state#146;s regulations. You can also start your own home-care placement service to provide caregivers to give assisted living to elders on temporary or long-term basis. A background in child development, health care, geriatrics, social work, or psychology is helpful.
Resources:
*National Association for Family Child Care, PO Box 10373, Des Moines, Iowa 50306. 515.282.8192,
www.nafcc.com
Send a LSASE for more information.
*National Association for Home Care, 228 7th St., S.E., Washington, DC 20003; LSASE for info.
www.nahc.org
*Start Your Own At-Home Child Care Business, rev. ed., by Patricia Gallagher. 1994, Mosby-Year Book, St. Louis, MO.
16. ERRAND SERVICE
As the baby boomers reach their fifties, so will the market for personal services needed by this aging population. Errand services are also needed today for busy parents, persons with disabilities, and even businesses. You can specialize in one-type of errand like grocery shopping or offer a diverse selection for your clients.
Resources:
*
How to Start and Operate an Errand Service
, by Rob Spina. Legacy Marketing, $29.95, 1(888) 725-2639.
17. IN-HOME TUTORING
If you have the credentials and expertise in such subjects as reading, English as a second language (ESL), high school math and science or college entrance-exam preparation, or other school subjects, and you enjoy teaching on a one-to-one basis, you may want to start an in-home tutoring business. One woman started tutoring junior high and high school students after school, in her home, who needed academic help and those seniors applying for scholarships. In ten years her venture has grown to a state-licensed business offering tutoring by one of her fifteen, part-time teachers in the remodeled Victorian home she purchased for her business or in the homes of the students themselves.
Resources:
*
Becoming an Effective Tutor
, by Lynd B. Myers. 1990, Crisp Publications, Menlo Park, CA.
*National Association of Tutoring, Jacksonville State University, Ramona Wood Bldg. #105, 700 Pelham Rd. N., Jacksonville, AL 36265-1402; Send a LSASE for information.
18. TRAVEL PLANNING
Travel will continue to be #147;hot#148; in the next century. You can work as an independent travel sales representative. You refer clients to travel agencies with whom you work and receive a commission for this referral. If you live in a tourist area or have a town with historical significance, you could arrange your own tours. One woman writer of ghost stories gives tours of her town#146;s homes that are reported to be haunted.
Resources:
*
Home-Based Travel Agent: How to Cash in on the Exciting New World of Travel Marketing
, by Kelly Monaghan. 1997, Intrepid Traveler; ISBN: 1887140042.
19. PERSONAL ORGANIZER
If you have a passion for organization and order, you may turn these skills into a successful business helping individuals and business persons organize their homes and offices. You can help market your business by giving #147;How to Get Organized#148; lectures or courses in your community.
Resources:
*National Association of Professional Organizers, Po Box 140647, Austin, TX 78714; Send a LSASE for membership information.
www.napo.net
20. PET BUSINESSES
If you have knowledge of certain animals and pets, you may be able to specialize in one or more services for them. These ventures can include cleaning pet yards, grooming, pet sitting in your home, running a pet taxi, and others. Knowledge and a love of the animals for whom you care is a must.
Resources:
*
Career Success with Pets: How to Get Started, Get Going, Get Ahead
, by Kim Barber. 1996, Macmillan Publishing Company, Inc., NY.
*
From Problems to Profits: The Madison Management System for Pet Grooming Business
, by Madeline Bright Ogle. 1995, Madison Gray, Inc.; ISBN: 1878795252.
*
Pet Sitting for Profit: A Complete Manual for Professional Success
, by Patti J. Moran. 1997, Howell Book House, Inc., NY.
*Pet Sitters International, 418 East King St., King, NC 27021-9163,
www.petsit.com
Whether you choose one of the above businesses or not, let them stimulate your thinking. Draw upon your own skills, and interests, and research to find the best business for you.
For more information on these and other home business ideas try these helpful books:
101 Best Home-Based Businesses for Women
, by Priscilla Y. Huff, 1998, Prima Publishing.
More 101 Best Home-Based Businesses for Women
, by Priscilla Y. Huff, 1998, Prima Publishing.
Mompreneurs#151;A Mother#146;s Practical Step-by-Step Guide to Work-at-Home Success
, by Ellen H. Parlapiano Patricia Cobe, 1996, Perigee Books.
copy; 1998 National Association of At-Home Mothers. All rights reserved. Permission granted for use on drlaura.com
This
Info Guide
was provided by
AtHomeMothers.com
where you#146;ll find complete support and practical information for the at-home motherhood lifestyle, including the
National Association of At-Home Mothers, At Home Mother
magazine, and much more!
Permission granted for use on DrLaura.com
Staff
2010-05-07T08:42:22Z
Grant Consultant, A Great Work At Home Biz
Staff
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<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Grant Consultant, A Great Work At Home Biz
Jillian Coleman copy;2003
www.GrantMeRich.com
Are you racking your brain, looking for a way to stay at home with your family, and still make a comfortable living?
Are you a good communicator? Can you sit with another person and understand what it is she wants? Then can you talk to her so she has a clear idea of your thoughts and opinions? Can you express yourself well in writing - take scattered information and put it together on the page so it makes sense to the reader?
Do you like doing research - digging deep and finding information? Are you computer and Internet savvy? Are you good at conceptualizing ideas, making plans and implementing them effectively?
Do you get a charge out of helping other people accomplish their goals? Are you inspired to improve your community and create new resources? Do you enjoy variety, and managing your own time and workload? Want to be your own boss?
Would you like a career that provides some visibility, and the opportunity to be well respected for your contributions, while you earn $50 to $150 an hour?
If this sounds like you, I'd like to suggest the best career you've probably never considered: grants consultant.
A career as a grants consultant does not require a college degree. This is a career in which your performance is much more important than any educational credential. Of course, grants consultants must be professional in their appearance and presentation of themselves and their services. That doesn't mean suits and high heels, however. The majority of clients are in the helping profession, so the dress code is usually business casual.
Grants consultants provide services to non-profit agencies and businesses in their communities. These services may range along a continuum from very simple to very complex. At the simplest end of the continuum, a non-profit agency, such as a shelter for battered women, may not have sufficient staff to write a proposal for a grant they have identified. So they enter into a contractual arrangement with a grant writer to prepare the proposal. Many agencies routinely use contract grant writers. Other agencies hire staff grant writers, and allow them to work from home.
At the more complex end of the continuum, a group of investors may be interested in building an affordable housing project. The consultant may participate in planning the project, help structure a consortium, lobby legislators, provide public relations, work with neighborhood associations, find a variety of funding resources, and write the grants proposals. At this level, the grants consultant may take an equity position and own part of the project, as well as earning a developer's fee.
Obviously, the services you could provide as a grants consultant depend upon your training and your existing knowledge base. If you have a background in business, management, finance, or real estate, that background has provided you with skills you may be able to share with your clients.
But even if your experience does not touch upon those areas, you can learn all the skills necessary to find funding resources and write effective grant proposals. And as you work on more projects, and gain more experience, you have ever-greater skills to offer your clients.
Here are three steps to get started on a career as a grants consultant:
Make an assessment of what you have to offer now. Write down the skills you have developed thus far, through previous work experience, volunteer work, education or training.
Enroll in a comprehensive, high-quality training program for grant writers. Be sure the training emphasizes research skills; writing foundation, corporate, and government proposals; and the politics and procedures of dealing with funders and clients.
Jump right in! Select a cause you support within your own community, perhaps your child's sports team, or a non-profit daycare center. Identify a small need (under $10,000), such as uniforms or playground equipment. Then volunteer to find money for them and write a grant proposal. With a couple of successful grants under your belt, you can begin to market your services to paying clients.
Jillian Coleman is a consultant to businesses and non-profit organizations. Her website,
www.GrantMeRich.com
, is a resource site for entrepreneurs, grant writers and consultants, and offers online training for grants consultants. Jillian is the author of books related to grants and business, including Big Bucks: The Complete e-Guide to U.S. Government Grants, and Build Your Small Business Now! Secrets of Success for Entrepreneurs.
Permission granted for use on DrLaura.com .
Staff
2010-05-07T08:42:18Z
Are You Stuck In Startup Phase?
Staff
http://www.DrLaura.com/b/Are-You-Stuck-In-Startup-Phase
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2010-05-07T08:42:17Z
2010-05-07T08:42:17Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Are You Stuck In Startup Phase?
By Kristie Tamsevicius
www.WebMomz.com
In reality, the business that you have built may be nomore than an elaborate "job" for yourself. Sure you getto be your own boss and work from home, but if you wantto make more money, you need to start thinking like a franchise. Ask yourself, "How can I systematize and automate my business so that it can run without me?" How can you make the process of delivering your product or service turnkey so someone else can easily replicate it?
In his book,
The E-Myth Revisited: Why Most SmallBusinesses Don't Work and What to Do About It
,Michael Gerber explains this concept perfectly.He explains why McDonald's restaurant calls their business"The Most Successful Small Business in the World." In1952 Ray Kroc experienced great success when he discovereda way to create hamburgers "quickly, efficiently, inexpensively, and identically." He devised a process so simple that any high school kid, anywhere, could replicate it. He took that "process" and developed his franchise. That's why you don't need Ray Kroc himself to grill your burger in order to get that McDonald's experience. If you go to a McDonald's anywhere in the world and order a hamburger, you know exactly what to expect because of the standards and procedures he established.
If you were to sell your business today, could it runwithout you? Try to see yourself as a young Ray Kroc, creatively think about how you can make the move from being self-employed to being in command of an efficient self-serving business enterprise.
TOP FIVE REASONS WHY PEOPLE STAY STUCK IN STARTUP STAGE
Many new business owners seem to get "stuck" at thisbeginning stage of business and don't push to the nextlevel. Here are the major reasons why people fail tomove past the startup phase of business:
Complacency: It's easy to get caught in thestatus quo and become so busy that you forget to planfor the future. When things are going smoothly, it'sa perfect time to dream, ponder, and plan your next moves.
Lack of vision: If you could do anything in yourbusiness with no limitations what would you do? Spend some time daydreaming. Brainstorm with your business coach or a friend about what's possible. Don't stifle yourself by waiting for the "good" ideas. Let the ideas flow out of you. Then narrow the list down to the winners. Keep an idea file and store all your thoughts there.
Loss of control: If you aren't careful, expandingyour business could lead to added responsibilities,lack of control, and loss of freedom unless you systematize your work duties. Imagine your business as a machine. If you wanted a machine to perform better, you would probably need to add a high performance engine, oil it, and make sure it is well maintained. Similarly, when you grow your business, you will need to add the people and parts to perform the extra tasks. Growing the business does NOT have to mean that you personally do more.
Fear of change: Routines feel comfortable, like aworn pair of jeans. And changing your business can bea fearful thing if you let it. Once you acknowledgethe things you are afraid of, they lose power over you.Like the mice in the book
Staff
2010-05-07T08:42:17Z
Navigating the Choppy Waters of Family Owned Business
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2010-05-07T08:42:16Z
2010-05-07T08:42:16Z
<img alt="Icon" class="blog-icon-large" src="/images/Site/Icons/150x150/work_at_home.jpg"/>Navigating the Choppy Waters of Family Owned Business
By Dr. J. Mitchell Perry
President/CEO
JM Perry Learning Technologies
The US Small Business Administration reports that family owned businesses in this country are alive and well. In fact, 90% of small businesses are family owned. So the good news is that there are a lot of families out there involved in owning and managing businesses. The bad news is that managing the business while keeping family members functional, well adjusted, and happy is a tall order indeed. Most family businesses have poor futures: 3 in 10 will survive transition of ownership to the next generation. Why?
Most of the time the issues that arise center around reconciling: 1. For the business: power, control, and succession, and 2. For the Family: Love, loyalty, and #147;fairness#148;
On one hand, family members often have good intentions. They want to feel love, loyalty and protective of each other. Too often feelings of suspicion, self-protection, jealousy, hostility, betrayal, avarice, and guilt take center stage when conflicts emerge surrounding the major omnipresent question: #147;How do we make this business grow, become profitable, and be successful while at the same time making family members involved feel loved, reinforced and rewarded?#148;
Many times huge conflicts evolve that either break up families and/or ruin businesses because the efforts to answer this question are managed so poorly. Because you love a family member has often little to do with that same member being competent, equipped, or suited to handle a specific job in the company. Your interest in being #147;fair#148; can be in direct conflict what is best for the company. Problems arose at International Rectifier in the mid 90s when the two sons of International Rectifier chairman Eric Lidow almost lost the company due to sibling rivalry. Alex Lidow, current CEO of the company, said about his brother, #147;We were products of a competitive upbringing and I had to resolve a lifetime of issues.#148;
What can your company do?
KEEP THE DIALOGUE GOING: The moment family members quit talking for whatever reason is the minute the conflicts become untenable and the stage is set for lawyers to take over. Remember, the more talking and conversations occur the better the chance for resolution.
GET OUTSIDE HELP: Too often, family members are too emotionally involved and therefore will have trouble thinking objectively about what is good for the business. So, get outside facilitation, mediation, and consultation when it comes to securing succession plans, control assignments, and organizational changes.
STAY FOCUSSED ON THE BUSINESS: Make the hard calls on what the business needs. Sometimes that means removing and/or reassigning some family members. While tactically this is often painful, strategically this will insure the business being solvent and secure.
REGULARLY DISCUSS THE PLANS AND GET THEM IN WRITING: Have family members participate in the making the agreements and plans. Make sure you write them down in plain English and then review them periodically.
MAKE SURE LOVE IN THE FAMILY IS DEMONSTRATED IN OTHER WAYS: If love is shown only through compensation, control, status, and other rewards in the business, you have trouble. Take the time to develop and nurture other dimensions of family closeness outside the business.
MAINTAIN THE USE OF MULTILE OPTIONS: People naturally polarize when there is conflict and tension. This creates right/wrong, good/bad, win/lose, success/failure thinking which results in escalation of anger, suspicion and defensiveness. Remember that 3 options or more will always calm down this problem. Always use the magic of multiple options and you will be amazed how you can balance business with family priorities.
Remember the purpose of business is to be successful which requires competence and intelligent planning. At the same time, family success is determined by different variables like love, reinforcement, loyalty, and closeness. Managing these two major systems requires skillful navigation in often stormy seas. Keep the above ideas on your radar and the sailing is likely to be much smoother.
Dr. J. Mitchell Perry is CEO of JM Perry Learning Technologies. To reach him call 800 JM PERRY or go to
www.jmperry.com
Permission granted for use on DrLaura.com
Staff
2010-05-07T08:42:16Z