Entrepreneurial

3 ways to help your startup succeed

– Stephanie Rabiner is a contributor to FindLaw’s Free Enterprise blog. FindLaw is a Thomson Reuters publication. This article originally appeared here. –

The number of startups has been steadily increasing, with 2010 boasting a 15-year high with 565,000 new startups each month.

Experts pin the growth on unemployment and dissatisfaction, but, according to CNN Money, experts also caution that starting a business out of desperation is not the right path to startup success.

Even if a lack of contentment is behind your startup, that doesn’t mean you can’t be successful in your venture. Here are a few tips to make this happen.

1. Be clear about your goals. Startup success stories are often borne out of clearly articulated goals. Not only does an affirmative goal help you pitch your idea to investors, it will help you make tough decisions that stay true to your intentions and keep you on the right path.

2. Build customer relationships. Horrible customer service can ruin an amazing product. Startup success requires that you understand your customers’ needs and that you be available should anything go wrong. A customer who feels taken care of is more likely to recommend your product, pushing you on the path towards startup success.

3. Get help. You may be fine without employees, but just like the rest of us, you don’t know everything there is to know about running a business. In fact, most startup success stories involve people who only knew their product and nothing else.

6 ways to make your small business look bigger

– Michael Hess is founder and CEO of Skooba Design, which develops and produces custom products for other companies, ranging from small businesses to Fortune 500 corporations. This article first appeared on BNET. The views expressed are his own. –

Some people say “fake it ‘til you make it,” but I think that cliché has an unnecessary air of phoniness about it. Still, if you are starting up or running a small business, making your company look bigger and more established to the outside world can have dramatic results.

Mind you, I am in no way suggesting misrepresenting yourself or your company, nor advocating flash over substance. And I’m certainly not suggesting that you behave like a big, impersonal corporation. What I am saying is that image does matter, and you should cast your business in the best possible light. To me, the more fitting chestnut is “dress for success.”

Dressing up your small business sends a message of seriousness and credibility to customers, suppliers, prospective employees, and anyone else who interacts with the business. It also affects your own attitude, much like wearing nice clothing makes you stand a little taller. With so many cheap and easy tools available for the purpose, there’s no excuse for not making your business look like a business, even if the company is just you and a laptop. Start here:

1. If you work from home, lose the bunny slippers. If you’ve chosen to (or must) work out of your house, then create an impenetrable “work bubble.” That means a dedicated, quiet, professional, well-equipped and wired space that you, and anyone else in the house, treat no differently than an office across town. No exceptions. And I recommend you still get dressed for work in the morning, even though you don’t have to. It affects your behavior. And I could tell you about some surprising Skype video calls I’ve had.

2. Your phone sets a tone. I can’t tell you how many times someone has called me, representing a business, and I’ve heard kids or pets or TV in the background. Or I’ve called a “business” number and listened to a static-y answering message saying “you’ve reached the Jones family and Jones Industries, Incorporated…” Get a good phone on a dedicated line, and clear, professional voice mail, and record a professional-sounding message. If it starts with “hey there” it’s wrong.

Similar thinking for your mailing address. Though PO boxes don’t always send the ideal signal, they’re better than sending your invoices from Mockingbird Lane. I will confess to having google-mapped addresses of new business contacts, only to be surprised to see a satellite view of a house and yard.

10 small business tax mistakes that will cost you

– Donna Fenn has more than 20 years experience writing about entrepreneurship and small business trends. She is the author of “Upstarts: How Gen Y Entrepreneurs are Rocking the World of Business and 8 Ways You Can Profit From Their Success“. This article originally appeared on BNET. The views expressed are her own. –

There’s not an entrepreneur on the planet who likes thinking about taxes. I know, it’s only February, so you’re likely still in deep denial about April 15. But it’s time to get organized. Almost every aspect of your business has tax ramifications and if you don’t know what they are, you’re inviting trouble down the road (can you say “audit?”).

For tips, I recently spoke to Sandy Botkin, a CPA, attorney, former trainer of IRS attorneys, and the CEO of The Tax Reduction Institute in Germantown, Maryland. He’s also the author of “Lower Your Taxes — Big Time 2011-2012”. Botkin shared 10 common tax misconceptions that both fledgling and experienced small business owners are guilty of. How many of these phrases have you uttered?

1. “I can do it myself.” “Most small business owners do not have the tax knowledge they need to stay out of trouble, but they won’t pay for planning,” said Botkin. “They’re cheap so they use TurboTax. But TurboTax won’t represent them if they get into trouble.” Sure, as a member of the profession, Botkin has a vested interest in recommending that you hire a CPA. Maybe you really are capable of doing your own tax planning. Maybe you can also rewire your office, build your own website, and represent yourself in court. That doesn’t mean you should. Just sayin’.

2. “I keep my receipts so I don’t need a tax diary.“ Every small business owner must keep an accurate tax organizer, said Botkin, and it’s not the same thing as an expense log. “A tax organizer has all the questions that the IRS requires you to answer about travel, entertainment, and other expenses. It will bulletproof your records and eliminate procrastination, and if you’re audited, it shifts the burden of proof to the IRS,” he said. Anything that allows you to feel smug in the presence of an auditor has got to be worth its price, which is not cheap in this case. You’ll spend over $100 for a decent tax organizer/diary.

3. “Yay! A big fat refund.” Many people are thrilled when they get a big check from the IRS. Wrong reaction, said Botkin. “A refund means you’ve given the government interest-free money for a long time,” he said. “If you have withholding, you want to adjust it to the point where you get very little refund.”

4. “I’ll just borrow a little from employee withholding.“ When they’re short on cash, it’s often tempting for small business owners to dip into the trust fund that’s used for employee withholding and Social Security. “Many employers think ‘this is my money,’” said Botkin. “It isn’t. If they borrow from withholding or Social Security, they are personally liable, with huge potential penalties.”

5 marketing tips to grow your business in 2011

– Stephanie Chandler is the author of “LEAP! 101 Ways to Grow Your Business”. She is also a business advisor to Project REV – a small business marketing lab by Deluxe Corp. The views expressed here are her own. –

As the year comes to a close, now is the time to assess business performance for the previous year while you develop plans for a successful 2011. Because marketing is so essential to business growth, the following are some strategies to help you get a strong start for the new year.

1. Give your website a makeover

Like a house that needs periodic maintenance and improvements, your website should improve and change over time. Take a close look at your site and make a plan to refresh or add content, upgrade site design, or improve the experience for site visitors. Your website can be the first introduction potential customers have to your business so it’s important that it makes the right impression.

2. Commit to blogging

Blogging is one of the most powerful tools available to small businesses. It allows you to connect with your audience, attract new customers, and improve search engine rankings organically. For best results build a schedule that includes blogging at least two to three times per week. Also, share new posts with your social networks for maximum content marketing value. Most importantly, be patient as you build your audience. It takes time to build momentum with blogging, but with consistent effort the benefits will inevitably follow.

3. Hang out with smart people

5 year-end tax planning tips for small businesses

–- Glen Wielandt is head of franchise business development at Fiesta Auto Insurance and a veteran in the income-tax services industry with more than 20 years of operational experience in the tax center franchise industry. The views expressed are his own. –-

It’s the end of the year, and you know what that means: tax season is right around the corner. Recognizing the positive impact that early tax-season planning can have on the small business community, below are five practical tips to better prepare yourself and your business for the 2011 tax season:

1. Keep a calendar. Deadlines differ depending on the type of business and when your tax year ends. Meeting filing deadlines will minimize penalties and interest.
2. Organize your records. Good organization may not cut your taxes, but there may be other financial rewards. Maintaining regular bookkeeping of your financial records year-round will make tax season a less daunting time of the year. Plus, your tax accountant will spend less time organizing your records, and you will pay less money for his/her time and services.
3. Contribute to a retirement plan. The benefit to this can be two-fold – if your business is profitable and you have employees. You can shelter income in a qualified retirement plan that will provide you with a tax deduction for your contributions. This will defer tax on earnings on those contributions, which ultimately becomes paid for when you start taking money from the plan. In addition, providing employees with a retirement savings opportunity can gain employee loyalty.
4. Defer income and accelerate deductions. There are several steps you can begin taking now to put off income into the next tax year and increase your deductions in the current tax year. Send your bills out a few days later, in the last month of the year. This means that you will get paid a few days later in January of the next year, and you will be able to defer the income, instead of having to declare that income immediately. Similarly, see what bills you have due in January and pay them before the end of December. This way, you can take that deduction during the current year.
5. Business tax credits. Keep in mind that there are many tax credits that your small business may be eligible for, including: Alcohol Cellulosic Biofuel Fuels credit, Alternative Motor Vehicle credit, and Disabled Access credit, to name a few. You can view a complete list of available tax credits by visiting the IRS website.

As you begin wrapping up your year, take these tips into account now and you will be pleasantly surprised by how much easier you’ll get through the tax season and the savings you’ll find.

Focus on what you’re good at

Neil Patel

Dec 21, 2010 18:37 EST

– Neil Patel is a serial entrepreneur that blogs about business at Quick Sprout and is the co-founder of KISSmetrics. The views expressed are his own. –

Is it me or is everyone these days trying to get rich quick? Not only am I meeting more and more people who don’t want to work hard to make money, but they are starting to get into new business ventures that they are clueless about.

I know the grass always looks greener on the other side, but it really isn’t. Don’t get me wrong, those lucrative businesses are making people millions of dollars, but it’s probably doing that for less than 0.3 percent of the people in that industry.

So before you decide to jump ship and get into a new career, just think about all the things you will be losing out on. Yes you may make some extra income in the short term, but if you put that time and energy into growing what you’re already good at and love, you’ll do a lot better.

If you want to make a ton of money in business, follow these principles:

Harsh Fact No. 1: Focus on what you know

If you’re really good at something, focus on it. Don’t stray away from it. Just do that and become the leader in your space. If you don’t think you can make enough money focusing on what you’re good at, then figure out what related businesses you can get into.

7 tips for landing an SBA loan

– Rachel Zippwald is the vice president of California Bank & Trust, a major SBA lender. The views expressed are her own. –

Small businesses seeking financing are in for a bit of good luck these days.

Special Small Business Administration incentives, such as the waiver of certain fees, are still available until the end of the year, so now is the time to apply for financing. There are, however, a few caveats.

While SBA loans are available, it may take a bit more work to obtain one and banks are requiring more information than they have in the past. The following are a few tips to facilitate getting your SBA loan approved.

1. Provide details on exactly how much financing you need and how you will use it. Banks like specifics, so be prepared to provide a precise dollar amount and give details of how you will use the funds. For example, if you’re seeking $125,000 to expand your business, explain to your lender how you will use the funds, such as you need $75,000 for working capital to support three months of expenses, and another $50,000 for seven networked computers and a server. Banks are impressed with research, so provide a written quote for the equipment. If you’re planning to consolidate debts and refinance for a longer term, provide copies of your promissory notes and state how much you think you can save with the refinance. Detailed loan amounts with copies of bids, promissory notes or proposals can help strengthen your loan package because your lender can understand the facts backing up the request.

2. Provide information about company management. When banks lend money, they like to understand who runs the company and to be familiar with their backgrounds. This is a key factor in presenting your loan for approval. Help your lender by providing a resume for each owner or key employee and describe their functions and responsibilities. If certain key positions have not yet been filled, include a thorough job description of the type of person you are seeking. This will confirm for the lender that you have analyzed your needs and have determined the requirements of the position.

3. Be prepared to offer collateral. The SBA requires collateral to fully secure your loan, to the extent that it is available. If you own a home, you will likely be asked to pledge it. The SBA may also request a lien on your business assets and may require life insurance on sole owners of a business. Most loans made by banks are secured loans, and therefore approval may be contingent on a guarantor who is willing to offer collateral.

Running a successful sales office

Reuters Staff

Apr 30, 2010 08:16 EDT

- Michael K. McKean is the CEO and director of new product development for the Knowland Group, a leading provider of business development solutions for the global hospitality industry. The views expressed are his own. -

“A-B-C. A-Always B-Be C-Closing…you close or you hit the bricks.”

This may work for Blake in the classic sales film Glengarry Glen Ross, but sales directors today know it’s not always that simple. No one can create the perfect sales office overnight, anymore than someone can wake up one day as a golf professional ready to win the Masters. Building a successful sales team takes skill, patience, and hard work.

But just as any golfer can quickly up their game with a few short lessons from a knowledgeable instructor, so can you improve your team with a few easy steps.

1. Make your sales managers cold calling experts

Teach your people valuable telesales techniques from the beginning. Things like:

• Start out honestly by telling the prospect why you’re calling and how much of their time you’re going to take.
• Don’t waste the prospect’s time. No one likes a salesperson who rattles on for 30 seconds without letting them get a word in.
• Make sure to schedule a follow-up appointment or phone call before you hang up.