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The Small Business Advisor Newsletter for November, 1996

• Advertising Info
• 809 Area Code Scam Info (Additional)
• MS Word virus alert
• "Cookies"
• The Phone: Your Home Office Lifeline
• Write off health insurance premiums on your taxes
• 10-steps to Information Empowerment

809 AREA CODE SCAM INFO. We sent out a warning in a previous special newsletter to warn about this 809 area code scam in which callers are charged up to $25/minute without warning! For additional details on this scam check out http://www.scambusters.com

MS WORD VIRUS. Many small businesses use Microsoft Word as their word processing software. You should be aware that there is a new strain of viruses that can infect your Word documents (via macros) with harmful effects ranging from none to deletion and changing of files. Protect yourself by downloading Microsoft's Macro Virus Protection tool from their site at http://www.microsoft.com/msword/freestuff/mvtool/mvtool2.htm Run this executable file which will result in two files: scanprot.dot and readme.doc. Simply follow the instructions in the readme file to install the protection tool.

"COOKIES." There is a lot of discussion about how "dangerous" cookies might be to your privacy on the internet. For those who don't know, a "cookie" is a small piece of information (a few bytes) that a web server sends to your browser where it is stored in a file called, "cookies.txt." The next time you visit that same site, the information in the cookie file is sent back to them. At this time, there is no need to be concerned about these cookies. If you want to see what cookies are on your machine. Search for and view the file "cookies.txt"

• Cookies do not contain any information not originally sent by the remote site
• Cookies do not contain any executable code
• Cookies are useful in allowing web sites to tailor information for you
• Cookies don't "probe" your computer system
• A cookie you receive is not transmitted anywhere but to your own browser.
• A cookie can include your credit card info if you had originally sent it to some site (say to purchase something), but this is rare and not a security problem of any consequence.

THE PHONE: YOUR HOME-OFFICE LIFELINE
(reprinted with permission from the "Small Business Builder." http://www.finl.com)

You're connected to the virtual world through your Internet connection, your fax machine hums while it supplies you with another important digital transmission, and your doorbell just rang -- another package pickup from the FedEx guy. Your home-based business is rife with communications options and tools, yet your most vital lifeline to the outside world -- your prospects, customers, and vendors -- is probably your telephone.

Since it first appeared on the scene more than 100 years ago, the telephone has supplied individuals and businesses a quick and easy way to communicate with their friends, family, and customers. But are you using your telephone to its best advantage? Here are some tips to help you get the most out of your phone.

PHONE ETIQUETTE
For many home-based business people, the phone must take the place of a firm handshake, a warm smile, and well-tailored business attire. You're not there to look your prospect or customer in the eye and fill him or her with confidence. The phone can sometimes be a cold substitute for the real thing. With that in mind...

• Ask a friend or your spouse to critique your phone voice. Do you sound authoritative and clear? Is your energy level up? Or does your voice trail off into garbled nothingness?
• Try to avoid taking phone calls when you're in a negative mood. Your demeanor will come through loud and clear even if your words are positive.
• Since subtle gesture can't be seen over the phone, exaggerate. Laugh out loud if something is amusing; if you agree with what's being said, don't just nod your head -- voice your agreement.
• Pay attention. It's easy to drift aimlessly or lose your concentration during a protracted phone call. If you feel the person on the other end has entered the Twilight Zone, ask if they have any questions or if you can clarify anything.
• Try to minimize both interruptions and background noise. Nothing is more irritating -- and unprofessional -- than hearing a barking dog, a crying baby, or a beeping microwave oven.

• Do you expect multiple calls at any given time? If so, you might consider a multiline phone system.
• If you don't expect the volume of calls to warrant multiple lines, yet you hate to miss a call, consider call waiting.
• If you dial the same numbers all the time -- especially long-distance 10-digit numbers -- think about a phone with a speed dialing option.
• Most phones nowadays come with automatic redial, allowing you to redial the previous number you called with the push of a single button.
• If you'll be doing a lot of running around and know where you'll be, you can order call forwarding from the phone company to send your incoming calls to another phone.
• Speakerphones can be handy if you need your hands or need to move around the office while you're talking. Another option is a headset -- especially useful if you spend a lot of time on the phone.
• Answering machine, voice mail, or answering service? It's important to leave a good impression of your business by giving a caller the opportunity to leave a message if you're not there. Don't ever let a prospect or customer hear your phone ring and ring with nobody -- not even a digital voice -- to answer.

• If your business depends on the calls of customers who order products, you might want to consider an 800 number. By posting this toll-free number in your advertisements and other marketing channels, you'll be giving our customers an opportunity to order your goods without spending any of their money. Ask your long-distance carrier about how you can get an 800 number for your business.
• If you make lots of local or long-distance calls to certain geographic regions, consider subscribing to Wide Area Telephone Service (WATS). For a discounted price, your business can get unlimited access to various geographic regions.
• A 900 number may be another small-business option to consider. Your customers or prospects can call your 900 number for either a per-minute charge or a flat fee (you split the fees with the service provider) and receive some timely or important "know-how" information. Although the 900 number field is full of scams and rip-off artists, many legitimate businesses offer a valuable service through the use of 900 numbers.

WRITE OFF AT LEAST 30% OF THE HEALTH INSURANCE PREMIUMS FOR YOU AND YOUR FAMILY.
(Excerpted by permission from "101 Tax Saving Ideas" by Randy Gardner and Julie Welch, CPA's)

For most people, health insurance premiums are medical expenses. Medical expenses are deductible as itemized deductions to the extent they exceed 7.5% of your adjusted gross income (AGI).

However, if you are self-employed, you have an advantage. You can deduct 30% of your health insurance premiums in arriving at your AGI. This includes health insurance premiums for you, your spouse, and your dependents. The remaining 70% of the premiums is a medical expense and is subject to the 7.5% of AGI limitation.

There are two conditions you must meet to take this special deduction. First, you must have income from the business that provides health insurance coverage. Second, you must not be able to participate in a subsidized health plan maintained by any employer, including your spouse's employer.

You can use a month-to-month check to see if you were able to participate in a subsidized health plan. If you are eligible to participate in a subsidized health plan for one month, you can still claim the special deduction for the remaining eleven months.

As a result of the Health Insurance Act signed into law in August, 1996, the special 30% health insurance deduction will be increased in future years as follows:

1997            40%
1998-2002       45%
2003            50%
2004            60%
2005            70%
2006 & later    80%

10 STEPS TO INFORMATION EMPOWERMENT

This information was excerpted from Arthur A. Hawkins II's book, "THE Know-It-All Reference Guide" ($15). Information Research Lab 9824 Western Avenue, Suite 144, Dept. SBAdvisor, Evergreen Park, Illinois 60805, USA.

The 10 INFO Empowerment Steps- a process for getting what you need:

1) Know what you are looking for and what you want to accomplish
Before you begin your search it's a good idea to know what you are looking for, at the very least you need a direction, a place to start.

2) Be prepared
List what you need, why you need it and develop questions to ask; begin targeting the best sources to get it (create a personal "info network"- people, places, publications, computer resources); plan how you will contact sources; set aside time to get what you need; and always follow through.

3) Smile & Relax
Have the right attitude before you search and the process will go smoothly.

4) Contact the source
Call, write, fax, e-mail, surf to or visit the source. And try to find a contact (name, title, department, link).

5) Be Polite & Persistent
Remember it's you that wants info, not them. Even if they are not helpful, make you wait indefinitely, send you from place to place or are downright rude to you do NOT get upset. Smile, stay cool and persist. Get what you need and double check it to make sure it's correct.

6) Get what you need
Use your prepared list, ask questions, use questionnaires & surveys and always probe for more. Also ask them for additional assistance, advice and opinions.

7) Put info, referrals and contacts in a usable form for today and tomorrow
Write, tape (audio, video) or enter everything in a computer. Save what's important by storing it carefully- use folders, file cabinets, libraries, databases. . . Make sure to get all important info and the name, title, address and number of the source and "right" contact person. Build your own personal "info network" for future reference. Make it easy for yourself, put everything in an easily recognizable form you can quickly find and use.

8)Seek out other sources and referrals
Use your "info network" to uncover other sources. Continue to add new resources and links to your "info network" (see #7).

9) FOLLOW UP
Make sure your info is complete. Follow up on what you uncover to confirm it and to obtain additional sources, leads and referrals. Use different sources to check it out, especially questionable info.

10) Say THANKS
Send a thank you letter/message/card or call to show your appreciation. Ask if there's anything you can do, i.e., let their boss know. People remember this and may go the extra mile for you in the future. Build a lasting "info network" by getting the source personally involved.

Finally, analyze information carefully and use it wisely!

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