bizthreads.net: Business Information for Entrepreneurs by an Entrepreneur

Choosing a Name for Your Small Business

Choosing a name for your business is not a decision that should be taken lightly. If your business’ name doesn’t properly reflect the types of services offered, you could lose out on lots of potential customers.

Your company name should also have a proper tone for your type of business. Below is an example.

Two brothers, John and Bob Miller are going to start a tree removal company. They choose the name Miller Brothers, and get to work.

The point: Sometimes simplicity is the key.

The name should be easy to remember, easy to spell and reflective of your business. If you can hit those three points, you’ll be on the right track. Once you’ve chosen a name, you must be certain that the name is available.

You’ll want to check both your state and the national trademark listings to be sure that no one has a trademark on the name.

You should also check with your local circuit courts to be sure that no one has registered the name in the areas in which you will be doing business.

Your business name is vital to the success of your small business. Choose wisely!

Home Office Tax Deductions

Keeping your office at home has many benefits. Aside from the ease of rolling from bedroom to office without ever having to step outside, there are lots of tax benefits that result from working at home.

Because different locations have their own rules about types of businesses that can be run from a residence, as well as directives about office size and other rules, it’s impossible to include a comprehensive list of tax benefits that applies to everyone.

That said there are some federal guidelines that generally apply to all home businesses.

The Space

You can claim a percentage of your mortgage and utilities equal to the percentage of your house that is being used by the business.

For example, if the square footage of your home office is 10% of the total space of your home, then you can include 10% of your mortgage and utilities as a deduction.

Improvements

Improvements made to the home office are 100% deductible.

Improvements made to the rest of the house which have an impact on the office - such as central air - are deductible under the same percentage rules as the mortgage.

Furnishings

Items purchased to furnish your home office are deductible. Items purchased for the rest of the house are not.

Keep in mind that to qualify for these deductions, you must have a dedicated home office that is used ONLY for that purpose. Also, you must not have another office space that you work from.

The examples of tax deductions listed here are by no means exhaustive. There are many others that can help you save thousands of dollars on your taxes.

Of course, you will want to check with your tax professional to be sure you are taking advantage of all possible tax benefits.

3 Great Small Business Tips for Moms

Many moms dream of the day they can work from home or run their own small business. Running a small business from your home when you have children can be a difficult task.

However, it also gives you the freedom and flexibility to be home with your children and care for your family. To be successful at both simultaneously requires skill and planning.

Here are 3 great tips for raising your family and running a business all at the same time:

1. When you run your small business from your home office it is important to have a dedicated work space.
   
   Naturally, not everyone has a room they can designate as their office. However, it is important to have an area in which your desk, files and phone can be kept and used.
   
   That space should be quiet and organized.
2. Keeping a time schedule is an important part of running a small business from home successfully.
   
   When you have kids you need to make sure you have time blocks set aside to make business calls in quiet. If your children are younger, this may be nap time - if they are older, it may be during school hours.
   
   Some moms schedule play dates with other ‘mompreneurs’ to trade quiet time with them.
3. Make sure your kids don’t feel neglected.
   
   If your children are starving for attention they will act out in an effort to get your attention. Schedule time to just be a mom during the day.

Running your household smoothly and raising your kids is just as important as your business. In fact, that is the primary reason many women become ‘mompreneurs’!

5 Tips for Cutting Your Small Business Costs

Starting and running a small business can be financially difficult. That is why it is important to know where you can effectively cut costs.

Correctly budgeting your money and knowing where to save money can mean the difference between small business success and failure.

Use the following 5 tips to start saving money in your small business budget today:

1. Before you spend money on an office or retail location, consider alternatives. If you are opening a store, consider renting a kiosk instead.
   
   They cost thousand less and require less time investment. If you are in need of office space, look into creating one at home before renting one.
2. Be office supply savvy.
   
   Make sure you reuse whatever you can, like print cartridges. Try free software programs before investing in expensive programs.
   
   When possible, buy used office equipment over new. These small things can make a big difference in your bottom line.
3. When you are in need of employees, consider hiring independent contractors, interns or temps.
   
   This will save you money on employee benefits. It also gives you the ability to only use hired help when you need it.
4. When it comes to small businesses, advertising can really eat up the budget. Save money on advertising by splitting advertising with another local business.
   
   You can also use your bills and other business related mailings to advertise sales and promotions to your regular customers.
5. Make sure you take advantage of your deductions come tax time.
   
   Save the receipts and bills for your business so you can correctly use your expenses as tax deductions. If you don’t know how to do your taxes effectively, consider hiring an accountant.

Your Small Business – Hiring Family Members

When you start a small business, the idea of hiring employees can be overwhelming. You may be concerned about your ability to pay these employees regularly.

Additionally, you may be worried about your ability to trust them with your business and manage them effectively. For this reason, many people hire family members to work for them.

However, hiring family members can have its pros and cons.

Consider Carefully

When hiring family members you need to consider their qualifications. Never hire a family member because of familiarity alone.

Take an unbiased look at their actual qualifications and determine whether or not they would enhance your business. Regardless of how comfortable you are with someone, first and foremost they must be able to do the job at hand – no matter who they are.

There is no right or wrong answer as to whether or not you should or shouldn’t hire family members to work in your small business. On one hand, a family member gives you a sense of security unfound with an unfamiliar employee.

However, it can change the dynamic of your relationship with them.

Establish Clear Guidelines

That is why it is important to establish clear guidelines regarding professional conduct and your business relationship.

When hiring family members it is important to first view them as an applicant and consider their value as an employee. It is important to maintain professional guidelines so that your business is not affected by your personal relationships.

Once you are certain that they are qualified for the position and you are certain of their ability to be professional you can hire them with a sense of confidence.

Need Creative Help? Try These Online Resources

When you start a small business, you need to advertise, brand and create business materials. Many people do this on their own, but often it is best to hire creative professionals to assist with these tasks.

Graphic artists, writers, software professionals and technical experts can be of great use to you in the beginning phases of operation. However, you may not want to hire them on as a permanent employee.

There are many places where you can find creative professionals to help you temporarily.

Web Forums

Forums are a great resource for finding creative professionals to help you with your small business.

Often forums have a section in which you can buy, sell or trade services with creative professionals.

These forums are often crawling with individuals who freelance and are looking for work.

Hiring Sites

There are a number of sites online like Guru.com that allow businesses to connect with creative professionals looking for work.

These sites allow you to place want ads and browse professional profiles and portfolios. They also help facilitate a smooth transaction with easy-to-use user tools and feedback.

Free Classifieds

There are a number of websites online that allow you to place free classified ads on their site. This allows you to place a help wanted ad when you are looking for creative professionals.

Just keep in mind you may get flooded with responses using this method - so it is wise to give yourself adequate time to go through them all.

Hiring a creative professional to help you with your small business can be tricky. It is important that you see samples of their work before hiring them and see feedback or review references.

The most important thing is that you protect yourself and your small business by using a careful hiring process.

How to Communicate Effectively With Your Employees

Learning how to effectively communicate with your employees may seem like a no brainer. However, many people make critical errors when relaying their expectations to their employees.

The fact is, your actions (or lack thereof) can have a direct impact on employee productivity. Using proper communication methods can help bridge the gap between you and your employees, thus making your business run more smoothly.

Proper Training

When you hire an employee, make sure they clearly understand the full details of the job you are hiring them for. Outline what software programs you use, your expectations of conduct and the actual tasks they will be expected to complete.

When you hire them, have a senior employee train them for their position. Never just throw them into the fire without showing them the ropes.

Have regular employee performance reviews. This gives you an opportunity to reward employees who are performing well in their given position. In addition, it gives you and your employees the opportunity to address any issues they may have regarding the job or their performance.

Open the Lines of Communication

Make sure you have an open door policy to answer employees’ questions, so they feel comfortable coming to you when they need something clarified.

Being a good leader involves being a good communicator. Most errors in the workplace are a direct result of improper communication between an employee and their boss. Make sure your employees have clear directions and feedback at all times.

When you take the time to communicate with your employees, errors and misunderstandings can easily be avoided.

Your Small Business – Get Organized NOW

One of the most common mistakes small business owners make is not organizing themselves properly. Organization is the key to running a business smoothly whether that business is small or large. Often when you own and operate your own business having time to be 100% organized can be difficult. That said there are a few things that you can do that will make your small business function more smoothly.

Organize E-mail

E-mail is an essential function in today’s modern business world. Whether you run an online business or you only have a web presence, organizing your e-mail can be extremely helpful.

First, separate your contacts by business and personal. You can also separate your business contacts by associates and customers.

Keep your e-mail box cleaned up. Delete junk e-mail and mark it as spam immediately upon receiving it. Have a dedicated spam folder that you routinely empty. Have folders for customers, associates and other contacts.

Separate your e-mails and distribute them to their correct folder upon receiving them.

Tidy Up

Keep your office or work area clean and organized. Utilize file folders, desk organizers and any shelving you have available.

At least once each week, tidy up your work space. Keep a trashcan and a paper shredder by your desk so you can discard things you do not need to keep.

Copy Cat

Make sure you keep backup copies of all your important information on disk or at a remote location. This will enable you to save your business should your computer crash.

Additionally, make sure you have all your important contact numbers on paper. This way if you lose your phone or your computer crashes you can still make important calls.

Getting organized isn’t rocket science – and it will help you be more productive in the long run!

Resources for Buying or Selling a Small Business

Whether you want to buy a small business or sell your existing one, it can be difficult to know where to start.

Before you start your search for a small business opportunity or make a plan to sell your small business, it is important that you know your options.

Regardless of whether you are buying or selling a small business, there are two fabulous resources you have at your disposal.

Business Brokers

Many people use a local business broker to buy or sell their small business. Generally, if you are selling a small business a business broker will only charge you if they sell your business.

It is important to consult with more than one small business broker to see what each has to offer you in the way of listing services.

Business brokers are also an excellent resource for individuals who are interested in buying a small business. Often, business brokers have a list of businesses that are for sale locally.

This allows you to get a look at what is available and what the price range for small business opportunities is. In addition, if you find something that interests you, they can help you during negotiations.

Online Advertisements

The Internet is an excellent resource for individuals looking to buy or sell a small business.

There are a number of online classified sites like BusinessMart.com, Craigslist.com and forums that allow small businesses to place for sale ads. This is a great place to start researching available opportunities when you are looking to buy.

Additionally, they are great places to spread the word when you are looking to sell.

If you need to sell your small business, there’s no need to despair. Use the two resources above, and your search could soon be over.

How to Succeed as a Small Business Owner

Owning your own business is much different from working for someone else in a 9 to 5.

Indeed, small business owners are a rare breed – and having the following traits will definitely help you to succeed.

Take Calculated Risks

As a small business owner, you will have to make decisions. No one is going to tell you what decisions to make and when.

Some decisions will undoubtedly work out better than others – that’s the nature of the beast. And sometimes, you’ll need to take a calculated risk in order to progress.

Although taking risks can be stressful, it can also be satisfying and enjoyable – especially if you trust your own judgement. Being a good problem solver can give you lots of self-confidence, something you need a lot of as an entrepreneur.

Have Enthusiasm

To run your own business, you also need lots of enthusiasm. You can’t be half-hearted about your new venture; if you are, then you will definitely have problems overcoming difficulties – financial or otherwise - when they arise.

When you’re enthusiastic about what you do, you inspire others – employees, vendors and customers – and it will probably be reflected in your bottom line.

Most people would rather do business with someone who is enthusiastic about their work and enjoys it. This goes double for clients.

Display Ambition

Most small business owners’ best asset is their ambition. This is a drive to achieve, financially and otherwise.

Having ambition isn’t a negative thing – it’s a good one. Ambition helps you to overcome obstacles and setbacks, which will happen when you have your own business.

Being a small business owner isn’t for everyone. But if you have what it takes, you can definitely be successful at it.