Business Archives - Page 6 of 7

Cash flow – it’s the lifeblood of your small business. You need clients to pay you so you can pay for a variety of items like equipment and and keep things humming right along financially. But where do you turn when invoices aren’t paid promptly? If you think about obtaining a standard loan or credit line from a large traditional bank to bridge the gap, you’ll probably start to have a headache. With all the hoops small business owners have to jump through, it’s no wonder that many are frustrated by the process. The application requirements involve many documents. The time for an approval decision can take weeks.

However, a number of online lenders are, well, giving these traditional banks a run for their money. And as more of them enter the market and become popular, they’re no longer seen as a “fringe” way of financing but a very practical solution for some.

One of them, Kabbage, touts itself being able to help businesses qualify for credit lines as low as $2,000. The application takes minutes, the decision can often be made instantly and approved customers take as much as they want from the loan when they want rather than receiving it in one lump sum.

Another resource is Fundbox, which gives small business owners cash advances for outstanding invoices. The customer creates a free account, chooses an unpaid invoice to clear when funds are needed and then an advance is automatically transferred to the customer’s bank account. Advances are repaid, plus a small clearing fee ($52 - $72) over 12 weekly installments. Like Kabbage, the Fundbox minimum credit line starts very small – as small as $1,000, in fact – and borrowing on loan amounts can be done in just $100 increments. Large banks don’t typically concern themselves with smaller dollar values in a loan.

We’re also seeing PayPal and Square, who you’ve probably known primarily as payment processors, get into the lending arena. For Square, merchants are given a small amount that is repaid with a premium. The repayment is collected through the business’ credit card sales.

“OK, but what about the rates?”
One of the first questions many people have about online lenders concerns the rates they charge. However, several of these lenders are aiming to make their rates and fees as transparent as possible for the borrower’s benefit. So you know what your potential fees and weekly repayments are. There’s also an element of convenience, security and speed that often helps when cash flow is temporarily sluggish. These benefits are often outweighing any hesitation small business owners may have previously had about online lenders.

And this is just the tip of the financing iceberg.
Next month, we’ll take a closer look at peer-to-peer financing, which may not be as well known as a financing category but could also be a terrific fit for your business. There are more companies in the online lending space than ever and that can only mean good things for small businesses like yours.

When Jennifer Ott of Jennifer Ott Design, LLC. asked readers on the designer website Houzz for their feedback on what they would consider a “must-have” for their kitchens, the most popular response wasn't anything to do with having a bigger kitchen. In fact, many people wanted a smaller one. Why? They still desired the features of certain appliances like a refrigerator and cook top but without the square footage required to maintain. At the same time, cutting down on space didn't mean they wanted to sacrifice quality in the way of storage, work surfaces or seating.

That #1 answer gives us some insight into the trend we’re seeing with the very purposeful downsizing going on in real estate right now. For years, the idea that “bigger is better” has often ruled buying decisions. However, a swing in the opposite direction is occurring in which homeowners are taking a fresh look at what they truly value. They’re defining themselves by multi-functional spaces that feel more simplistic, sensible and yes, small. Don’t mistake this as purely an affordability issue either. By investing less on the size of the home, owners are often able to invest more on the design and materials within the home.

How much “stuff” do we really need?
It’s a question that homeowners may be asking themselves. After all, the byproduct of buying a bigger home is needing more furnishings. More home? More furnishings. And those furnishings, from a style perspective, don’t always hold up well over time - from a dated look to limited functionality. Suddenly more furnishings feel like more clutter. The kitchen and bath are still highly regarded, but areas such as a formal dining room are not as much of a “must have” either on a seller’s list or on a buyer’s. That’s why the switch is not only to smaller spaces but also more timeless and comfortable designs.

As you approach homeowners with the prospect of doing work in their kitchen or bathroom, remember these themes they’re responding to: Low-maintenance elements. Durability over time. Investing in high-quality design for smarter functionality, not merely to show off a space.

In their world, no matter how much square footage you’re actually dealing with, there’s always room for simplicity.

April 15^th is coming up fast and if you haven’t already filed a tax return, there are a few very important items to consider if you’d like to take certain business deductions. Sure, we all have business expenses. But all of those business expenses are not created equal and some of them aren't as well documented by business owners like you as well as they should be, which could cause you to miss out on some precious dollars coming back in your pocket.

Take a closer look so you don’t fall into these typical tax traps:

Tax Trap #1: Short-term supplies or long-term equipment?
Let’s say in the last few months you bought some high value equipment that you’re going to use for at least a year or two as well as some very minor day-to-day business supplies like envelopes and paper. Are you putting all of that in one big category of “Business Expenses I Can Write Off?” Not so fast. There’s a difference.

The equipment you purchased that’s probably going to last you a couple years needs to be reported on one kind of form, called a Form 4562. The other day-to-day things you tend to go through quickly, like office supplies, are just that – supplies, not equipment. That calls for a different kind of form, called a Schedule C.

Why is this important? Because the IRS needs you to report an expense in the right way and failure to do so could be a mistake you don’t want to make if you expect a deduction (or “write-off”) on that item. Assuming you use the right form for short-term supplies and the right one for long-term equipment, you may be able to deduct equipment either in full or a portion for every year you use it.

Tax Trap #2: Don’t forget to report the small stuff too
It’s easy to remember the bigger purchases you made in the last year, especially equipment of a high dollar value that you may be able to deduct. But what about all that mileage you drove to meet with prospects and clients? Did you keep track of that? Even if it was a short trip in the same town, those trips add up. What about the small monthly expense you might pay to keep a website up? Or a book of stamps you’ll buy here and there?

All of it matters and all of it should be tracked. While you may not be able to deduct it in exactly the same way (see Trap #1), you still have to remember everything you purchased for the business. Don’t wait until right before April 15^th to get your receipts in order.

Tax Trap #3: “Tax time” comes every quarter, not just April 15^thThat’s right. Businesses need to pay estimated quarterly taxes in addition to what they face on April 15^th. It tends to make the annual tax filing much smoother rather than an unwelcome surprise in learning that you have a penalty from not paying your quarterly taxes to the IRS.

Where’s the best place to find assistance? An accountant who specializes in small business tax planning can be a big help in identifying the ins-and-outs of what needs to be reported, what you can suitably deduct from your expenses and when crucial expenses need to be paid. If you’re confident enough to do it yourself, some programs like TurboTax have come a long way and tout that with their help, you can handle it on your own. Either way, keep these kinds of tax traps in mind to help you prepare not only for April 15^th but the days that follow. Better, more accurate records kept on a consistent basis year-round can help you focus more on your business and less on taking a “crash course” in accounting on an annual basis.

April 15th is coming up fast and if you haven’t already filed a tax return, there are a few very important items to consider if you’d like to take certain business deductions. Sure, we all have business expenses. But all of those business expenses are not created equal and some of them aren’t as well […]

In a world where you’re constantly on the go from job to job, project to project, having a method of communication like email to keep your customers instantly in the loop can seem like the greatest technological invention since the computer or smartphone itself. But did you ever think how the smallest of missteps in one email may cause more harm than good?

Part of the challenge of email is that for all its convenience, some things can get misconstrued compared to ordinary conversations in person or over the phone. In fact, some people can go through their workday committing these sins of electronic communication without even knowing it. Which means the relationship you worked so hard to build could be dealt a severe blow. Here are some of the more common missteps you can avoid to ensure your next client conversation is about the work itself rather than explaining what you meant in that email.

#1: CC’ing someone who shouldn’t be a part of the communication
One of the worst things you can do to damage trust is to bring another person into the conversation without first asking permission to do so – the dreaded “CC” on an email can quickly cause this kind of problem. All of the sudden, there’s a new name involved in what the customer thought was a private matter. Why? Keep the back-and-forth dialog between you and the customer if at all possible.

#2 Sending an email today to see if they got your email yesterday
Clearly you have some urgency to know if your message has been received. But let’s face it – your customer has other things going on in their life, which you should respect. A follow-up email just to “see if they received it” so soon after the first one could give the impression that you don’t care about those other matters. Just your own.

#3: Replying to a new topic with the same subject line
Here’s what we mean by this: Many times people go back and forth on email for the sake of being convenient. Which makes sense at first, right? They reply. You reply. And so on. But in the course of your conversations, new topics are bound to come up. Sometimes a month can go by and you’re still emailing customers with a subject line from a topic you haven’t discussed in an awfully long time. Why? It takes next to nothing to start a new email with a new subject line that speaks to the topic for today, not several weeks ago. It keeps you organized and everyone focused on the real subject at hand.

#4 Writing in a highly emotional state
The customer just sent you an email that’s gotten your blood pressure up. You feel a very natural urge to send back a reply to set him straight – and that’s exactly when you should hold off. But here’s the funny part. We’re not suggesting that you don’t write it out. You actually should. Sometimes the best solution is to truly write your thoughts down on paper (or in an email draft) so you can get all of your emotions virtually out on the table. Then walk away from it for a while. Chances are, this is not the email you will wind up sending at all but a more cordial, professional version will emerge once you've calmed down. That bodes much better for a more rational dialog that diffuses the situation rather than escalates it.

#5 Trying to fix a situation online that should be fixed in person
At the end of the day, our best, most satisfying customer relationships are often not only verbal but face-to-face. When it’s clear there’s a disconnect between you and the customer that’s not getting resolved by email, continuing to send emails to them to try and clarify the situation may very well only make it worse. Especially if it’s a complex concept you’re trying to explain. In that instance, you certainly could pick up the phone and call them to elaborate. But it would probably go even further with the customer if you offered to come to them to explain what you mean in person. They’ll likely appreciate you taking the time to invest in their understanding, which can certainly help build and preserve the relationship.

Small business opportunity You've had your prices at a certain level for a while now and with a new year, you've been thinking about – gulp – raising them. But if you’re like many people in your position, you’re nervous about raising those prices even a little and a possibly uncomfortable conversation with customers – especially if they’re hiring you for a second project.

Fortunately, what’s really a standard part of doing business over time can be manageable and not something to be afraid of, particularly if you keep these tips in mind as you give yourself a necessary “bump up” on the bottom line.

1) What kind of customer do you want? Choose value over price.
The customer who complains about the slightest price increase or the kind that sees you for your value? The latter will pay you what you’re worth and likely be far more enjoyable to work with. It’s understandable that you’d fear losing a few customers due to changing your price structure. We won’t lie – it could happen. But higher prices make it a stronger possibility that they’ll be replaced by someone who more than makes up for them by paying more, is more loyal for subsequent jobs and even possibly provides more referrals. The price complainer isn’t likely to have those qualities at all, so their loss should hopefully be very short-lived.

2) When you raise your prices, own it. Don’t backtrack.
There’s a good reason why you’re raising your prices – so explain these factors in a letter that elaborates but never, ever apologizes for the increase. Show them that you appreciate the business and look forward to working with them again in the future. If you’ve added certain skills and equipment that bring increased value and a better quality product to customers, you can mention this added value as a justification for raising prices.

3) Talk about long-term value. Not short-term tasks.
It’s going to be challenging for potential customers and repeat customers to focus on the rewards of your efforts for years to come if you’re talking a great deal about your time and hourly rate. You’ll be seen as a commodity rather than someone who can raise the value of a kitchen or bathroom, two of the most important rooms for increasing value in the home. In that context, one project can go an awfully long way. What’s it worth then? Quite a bit – enough to justify the customer choosing you.

You’ve had your prices at a certain level for a while now and with a new year, you’ve been thinking about – gulp – raising them. But if you’re like many people in your position, you’re nervous about raising those prices even a little and a possibly uncomfortable conversation with customers – especially if they’re […]

In the beginning of each year, it’s very easy for small businesses to set goals that seem lofty and ambitious. Yet so many of them abandon those goals long before the year is done. What happened? Where did they get off track?

Just like any “New Year’s Resolution” that’s personal such as losing weight, you can have a resolution for your business that feels exciting right out of the gate but quickly loses steam. There are a few reasons for this but fortunately, there’s also a way to adjust for some more realistic goals you can meet, making it easier to stay on course a whole lot longer.

When bad goals happen to good people
Let’s look at the kind of goals you could set for yourself in any given year:

I’m going to get more referrals.
I’m going to win more business.
I’m going to triple my business.
I’m going to have more loyal and satisfied customers.
I’m going to upgrade all my equipment.
I’m going to have fewer callbacks and more jobs done right the first time.

On the surface, there’s nothing wrong with some of those statements. Except you don’t know how you’re going to make it happen. There’s nothing strongly defined. In fact, these goals are so vague that you may not know if you even reached them! Other times, the goal isn't in sync with what you can realistically handle, like tripling your business. Sure, that sounds amazing when you say it, but what’s that going to mean for your time management and ability to dedicate yourself to each job? Are you going to have to hire more people – and can you?

Before you give up on goal setting, realize that it’s not setting goals that’s the problem – it’s about the right kind of goals. That’s where you should take a closer look at setting S.M.A.R.T. goals.

What’s a S.M.A.R.T. Goal?
S.M.A.R.T. stands for the 5 following factors – when they’re combined you’ve got a goal that you can wrap your mind around and “see” it easier:

Specific
This first one is huge. Think about exactly what you want to accomplish, why you want to achieve that goal, who else if anyone will be involved in helping you reach it, where precisely the goal needs to happen and when you plan on addressing it. When you’re thinking more exact about every goal, there’s no mistaking as to whether you reached that goal or not.

Measurable
What target dates do you have for reaching your goal? How much or how many of that item you’re measuring (like dollars, for example) do you need to feel that you've successfully completed the goal? It’s so important to measure success on your own terms so that when you do reach your goal – there will be a sense of tremendous accomplishment. Otherwise, if it’s too vague, it will be a never-ending task that you may never feel you reach, putting you in a position to feel like a perpetual failure when you aren't.

Attainable
Let’s get real – as in whether or not the specific and measurable goals can actually be achieved in reality. If you’re being honest with yourself and it feels like you just can’t imagine meeting those goals, then that should be a good indication that you need to adjust the goals to be more attainable. Don’t feel bad about downshifting like this. Yes, you want to push yourself but it does you little good to aim so high that you can’t get even close to reaching the goal.

Relevant
You've thought about a goal that’s specific, measurable and attainable. What more do you need? For one thing, you need to make sure that it’s relevant to your life. Is the timing to reach for this goal right and does it mesh well with everything else that you’re striving for in your business? Is it worth it to you to go for?

Timely
Everything can seem like it’s in alignment for your goal. From the precision of what it is to knowing you can reach it to having all the relevance in the world to your business. But if it’s open-ended and doesn't have any kind of time frame to it, there probably won’t be the sense of urgency you want in order to achieve the goal once and for all. Give yourself a proper due date to make the goal happen.

Home building may still have much room for improvement but when it comes to home remodeling, there’s news that should be music to the ears of kitchen and bath refinishers: remodeling spending from homeowners in 2015 may reach an all-time high.

That’s the good word from Harvard University’s Joint Center for Housing Studies in its new bi-annual report entitled “Emerging Trends in the Remodeling Market.”

Among highlights of the report:

The typical homeowner in 2013 spent an average of $2,500 on home improvement projects, more than 8% above the average posted between 1995 and 2005.
Kitchen and bath remodels accounted for 17.2% of home improvement spending.
Source: Joint Center for Housing Studies of Harvard University
47.8% of all people driving home improvement spending are Baby Boomers, making them the largest share of the remodeling market by far. Still, even though they spend the most on remodeling than any other generational segment, Boomers are generally spending more of their budget on home replacement/maintenance projects in the way of roofing, doors and plumbing rather than remodeling projects.
Keep a close eye on GenXers (35-55 years old) who are moving into a stage of life in which spending on home improvement projects will commonly increase. These younger homeowners are already spending a larger percentage of their budgets on kitchen and bath upgrades than Boomers.
Millennials (under the age of 30) are lagging on home improvement projects due in part to their trend of marrying and having children later in life compared to previous generations. Millennials also have a higher incidence of living with a family member, in some cases as a result of student loans, employment challenges and housing affordability. This has implications for the remodeling market because studies have shown that homeowners who are married or have children tend to spend far more on remodeling projects than single homeowners. However, as Millennials move into home ownership and in turn, home improvement, the impact on remodeling among this generation could be profoundly significant.

To read more of this very insightful report on remodeling trends from Harvard University, click here.

Home building may still have much room for improvement but when it comes to home remodeling, there’s news that should be music to the ears of kitchen and bath refinishers: remodeling spending from homeowners in 2015 may reach an all-time high. That’s the good word from Harvard University’s Joint Center for Housing Studies in its […]

Steve Coven and Mike Ripp were on the radio Sunday, January 11th, speaking about the tub refinishing business. They were guests on Get Down to Business with Shalom Klein on WIND-AM 560. They spent time talking about NAPCO's supply business as well as their successful training classes. Shalom Klein is very much interested in job creation so the training was of particular interest. The NAPCO training classes provide a great way for people to start what could be a lucrative career with a rather low cost of entry. Shalom was very impressed.

Shalom visited NAPCO in Skokie in late December to see the facility and meet some of the people there. He took note of how busy they were and of the excellent training facilities.

In case you missed it, you can hear the segment at this site. The interview with Steve and Mike starts at 14:30 into the show.

So you have a website for your business that isn’t that complicated. It tells visitors what you do, hopefully some examples of good results and how to get in touch with you. Nothing fancy but it gets the job done as far as communicating the most important elements, right?

Well, what would it mean to you if that website was down for a couple of weeks and prospects couldn't find you?

See, it’s easy to think that you don’t need to go to much trouble to protect a website that’s fairly basic. But the last thing you need is for some hacker to target the site and bring it down, causing you to lose out on potential opportunities.

That’s why it’s vital to keep these steps in mind:

1) Keep your passwords complex.
You’d be shocked how many people choose passwords like, “Password12345.” Really! That’s practically like leaving the door to your house unlocked at all times. Then those same people are surprised when their online “house” is broken into by hackers. Don’t be one of them. Instead, try a combination of letters, numbers and unique characters in a password that’s obviously easy for you to remember but would be extremely difficult for someone else to guess.

2) Change your username from “Admin.”
When you’re set up on some websites, like WordPress, the username you start with until you change it is commonly “Admin.” If you leave it as is, it may send a signal to hackers that your site is a bit easier for them to try and get into.

How big of a deal is this? In just the last couple of years, there have been thousands upon thousands of attempts by hackers to guess usernames and passwords – by using the default username, they don’t even have to guess and you've just made their path to getting into your website that much easier. So, much like your password, give your username a special name that’s easier for you to remember but the bad guys can’t.

3) When you’re asked to run a security update, do it.
Don’t worry – you don’t need to be a computer programmer to run a security update to your site. You just need to give permission for the update to go forward. So from time to time when you get a notification that your site is due for this type of update, do it. The more time that passes by and the more versions of security updates that you don’t run, the more vulnerable to hackers your website may become.

These relatively simple protective steps can help increase the chances that the right eyeballs from prospective customers view your website and the wrong people are kept far out of the picture. Which is right where they belong. Remember them for not only your site but also other sensitive places where company information is being stored, such as your email.

President Obama’s recent Executive Order on immigration reform isn't without its political controversy but his action may have a positive influence on an area of the economy that many haven’t thought about: The housing market.

Up to this point, immigrants have generally been perceived as a marginal audience for home buying due to the uncertain status of many. Enter the President’s Executive Order granting legal resident status to children who enter the U.S. and work authorization to the parents of that child if they have been in the country for at least five years.

Now, with millions of undocumented immigrants potentially finding much greater certainty associated with their situation, it could pave the way for a significant number of them to choose home ownership.

There are some challenges that may mean the pace of new immigrant home ownership is more gradual and steady than an overnight explosion of the segment. For one, understanding all the details of purchasing a home can be difficult for anyone – combine a more complex cultural component in some cases and real estate professionals who can’t readily explain the process of home buying to that audience and you've got a potential disconnect waiting to happen.

In addition, in a process where established good credit certainly plays a factor in obtaining a mortgage, it may be more difficult for some immigrants to have such a credit history in place.

That said, it’s hard to ignore a study made by the Research Institute for Housing America last year, which examined the role of immigrants in home ownership over the last decade. The findings? Nearly 40% of the growth in households between 2000 and 2010 were attributed to immigrants. In other words, the perception that immigrants aren't contributing heavily to new home ownership doesn't quite mesh with reality. With a new piece of immigration reform to encourage more of this audience to explore residential housing, the market could pick up steam.

In turn, a re-energized housing market fueled by additional immigrant buyers could mean big things for a variety of professionals who are influenced by greater real estate activity – from real estate agents and builders to remodelers.

We’ll want to keep a close eye on how the President’s actions on immigration reform play out politically and in practicality, but if it takes hold, its biggest supporters see an impact that will propel the housing market and the economy forward.

Read the complete report by the Research Institute for Housing America.

President Obama’s recent Executive Order on immigration reform isn’t without its political controversy but his action may have a positive influence on an area of the economy that many haven’t thought about: The housing market. Up to this point, immigrants have generally been perceived as a marginal audience for home buying due to the uncertain […]

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