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We hope you find this arcthve useful. A subscription to The Small Business Advisor Newsletter is free. Subscribe now - it's easy! The Small Business Advisor Newsletter for November, 1999 CONTENTS Notes, tips, etc NOTES/TIPS/etc SHOULD I INCORPORATE? Most think about incorporation in terms of limited liability but another point to keep in mind is that you might be a better audit target as a home-based business. BUSINESS RESOURCES YOU NEED TO KNOW ABOUT: Paychex: Let them take care of your payroll and all related tax services. (800) 322 7292. Inexpensive - only $35 for five employees per pay period. W.W. Grainger: Thousands of items for repair and maintenance of just about everything! (847) 793 9030. http://www.grainger.com. Thousands of stores throughout the country. Human Resource Services: (800) 322 7292. Legal Information for your business: http://www.lawoffice.com. To order giveaway items for your customers visit http://www.pens.com; (pens) http://www.iprint.com; (mugs, mousepads, etc) http://www.webtshirt.com (T-shirts). If you run a small business or home based business, the United States Postal Service gives you a big advantage. They'll deliver your Priority and Express Mail shipping supplies right to your door, for free. Supplies you can get include several sizes of boxes (for shipping via Priority or Express Mail only) and tape. Call 1(800) 222-1811 to establish a free account that makes ordering very easy. Looking for an address, phone number, e-mail: Try http://www.infospace.com Find the lowest price on a book by visiting http://www.bookblvd.com Marketing tips, strategies, and secrets for internet marketing. Visit the Internet Marketing Center, http://www.marketingtips.com/t.cgi/7115 ++++++++++++++++++++++++
Guess what? You are not going to live forever. Thinking about business succession is about as popular as writing your will - but it is a big mistake not to plan early. Not doing so can cause big problems later. Failure to plan for business succession can result in huge monetary loss not to mention the loss of the business itself. Taxes can easily take 50% resulting in bills that can only be paid by selling the business. The small business owner must carefully think through the process of succession. Who to leave the business to? What to take from the business? The major succession alternatives include Selling the business (possibly to employees) Turn over the business to a family member Leave the business to a trusted employee Take the company public (IPO) The right choice is never easy and it's a good idea to get your professional advisers involved to ensure you understand the issues involved. By planning early you will have the option of investing time in a family member and or employee(s) to ensure they have the background to continue the business. Additional training may be required. Or, you may find that you need to search for someone new. Planning early also allows you to let existing customers become comfortable with any new people they will be dealing with. Ensure that any "secret" processes or formulas are made available to those who will succeed you. If you have planned early and carefully, when it's time you may simply step aside knowing the business will continue. ++++++++++++++++++++++++ Building a website with all the high-tech features may dazzle your customers, but will it make them buy? Online shopping has attracted customers because of the price discounts and wide variety of choices it can offer. Customers can save valuable time and money shopping on the internet. However, the physical shopping world offers something that most websites haven't yet mastered: entertainment. Shopping has traditionally been a group-oriented activity that's entertaining. Besides purchasing products, people can use this recreational activity to get together, chat and relax. Browsing is entertainment. The new Metreon recently opened out here in San Francisco. This retail center has put a new twist on shopping that plays up what the internet shopping experience lacks: human interaction and entertainment. People go here to play and have fun while they shop. The Metreon creates a stimulating environment by including many touch-sensitive activities. In addition, people are treated as guests rather than shoppers - they can sit back, relax and watch TV with friends, listen to CDs, play video games, send e-mail postcards and more - all for free. If you provide an atmosphere on your website where your visitors can be entertained while browsing, will they buy? Will they buy more? Will they be more likely to return next week because they enjoyed their visit? Although it may be too early to tell, consider your own online shopping experiences. Entertainment is one factor that many websites currently don't include. Is it costing them sales? Examine your specific target market: would fifteen minutes of shopping at your site be more enjoyable if it were entertaining as well? If so, what online activities will help you create that type of atmosphere? Without investing a lot of time or money, you can implement some very basic interactive tools on your website that will give your visitors the option to participate in a variety of activities while they are browsing. You don't even need to understand advanced programming, CGI or javascript. Here are some examples of basic interactive tools that get your visitors more involved in your website and at the same time can give you valuable information about your target market: 1. Polls / questionnaires: customers can voice their opinions 2. Quizzes / games: customers can test their skills 3. Message boards: customers can ask questions and get answers from others 4. Classified ad pages: customers can advertise a product or service, or make a purchase 5. Discussion groups: customers can find information on certain topics that interest them 6. Search engines: customers can easily and quickly search your website for information they want 7. E-mail: customers can contact you directly with questions or comments 8. Feedback forms: customers can let you know what they think about your website or service 9. Weekly or monthly online newsletter: customers can have information that they are interested in delivered directly to them Note that you can offer all of these activities to your website visitors for free. If you consistently update your information, change your activities for variety and respond quickly to all messages, these tools can attract visitors back to your site again and again. This effective low-tech solution can deliver valuable information to both you and your visitors. It can also improve customer satisfaction and retention, decrease operating costs, improve the level of service and increase revenues. Watch out! Interactive tools can distract your customers from buying. You don't want technology to work against you, so make sure that these activities synchronize with whatever you're selling on your website. On a small business budget? Don't worry! There are many interactive tools that you can use on your site for free. In addition, you can easily install basic tools that are remotely hosted on other sites. That translates to: no programming for you! Here are some good resources: www.Bytecenter.com
E-commerce success may actually not be a result of the high-tech bells and whistles on your site - but the community and human interaction that you provide to bring your customers back. If you aren't getting the results you want from your website, reach out to your visitors. You may find that's just what they want. For more information on increasing your sales, visit www.homebusinesscenter.com or contact Sue at editor@homebusinesscenter.com. ++++++++++++++++++++++++
Unless you and your business partners are going to live forever and always be partners, the future of your company is at risk without a well written buy-sell agreement. A buy-sell agreement is a must for any partner or shareholder in a private company. It establishes a value for the shares or partnership interest and usually contains other rights and restrictions concerning the disposition of an interest. This agreement takes the place of the market value that is set by a willing buyer and seller in the public sector. The most common reasons for a value to be set are: 1. Owner dies. (A
properly crafted agreement can fix the value for estate tax purposes.) The casebooks are replete with struggles between owners and heirs arguing the value of business interests. Even though agreements can be challenged, they at least suggest the thinking of the principals at a time when cooler heads prevailed. Potential challenges are often muffled by a well-designed agreement. How it Works The buy-sell agreement maps out what happens to shares when a principal departs. The remaining principal(s) has the right to buy out at an agreed price or match an offer from an outsider. An outside investor often is reluctant to be in a minority position for fear that his input will be confined and the majority principal(s) will bleed the company with large salaries or sweetheart side deals. Sometimes an agreement calls for one of the principals to set a price with the understanding that he will sell to the other principal or buy out the other's position for the same price. Agreements usually include a clause that requires revaluing the company periodically. Obviously, a buy-sell agreement is a must and should be accomplished early on. The agreement can't solve all the problems, but it will reduce the challenges. NOTE: These issues are highly complex and each situation is different. We do not advise our readers to act solely on the articles herein without first consulting their personal advisor. ++++++++++++++++++++++++
Starting in October 1999 in response to legislative efforts, the Social Security Administration will be sending an annual Social Security statement to eligible individuals who are age 25 and older and not currently receiving social security benefits. The utility of the four-page statement is twofold: to assist workers by estimating Social Security benefits for financial planning, and to allow a worker to check earnings posted with the SSA for accuracy. According to the SSA, 125 million workers will receive an annual statement. These statements will be spread out throughout the year and sent to individuals three months before their birth month. The statement, titled "Your Social Security Statement" contains the following information: ? Whether or not the taxpayer has qualified for any or all benefits. ? The estimated monthly benefits earned that would be received at age 62, at full retirement age (from 65 to 67 dependent upon when the worker was born), and at age 70. ? The estimated monthly benefits earned if the worker collects disability. ? The estimated monthly benefits earned that the worker's spouse or children would receive if the worker should die. ? Yearly account of earnings reported to the social Security Administration and estimated taxes paid for Social security and Medicare. The actual monetary benefit calculated by the SSA is based upon earnings. If, upon receiving your benefit statement, you believe that your reported earnings are in error, there is information in the statement about amending any information with the Social Security Administration. This is very important due to the nature of calculation of your future benefits. This annual statement can be used as a financial planning tool. Social security is meant as subsistence to living in the retiring years, not as full income. According to the Social Security Administration, social security should merely be the "foundation on which you build your financial future." If you are unsure about your own financial future, now is the best time to consult your financial planner. For more information on Social security or the annual statements, visit the Social Security Administration's website at http:\\www.ssa.gov. Return to top of page - Back to Home Page - Back to Archive Index |