• Home
  • About Us
  • Toolkit
  • Getting Finances Done
    • Hiring Advisors
    • Debt Management
    • Spending Plan
  • Insurance
    • Life Insurance
    • Health Insurance
    • Disability Insurance
    • Homeowners/Renters Insurance
  • Contact Us
  • Privacy Policy
  • Risk Tolerance Quiz

The Free Financial Advisor

You are here: Home / Archives for business planning

New Year’s Resolutions for 2014 to Revolutionize Your Finances

January 20, 2014 by Average Joe Leave a Comment

It’s January. A new year. A chance to start anew. A blank slate to accomplish a fresh set of goals.

When it comes to your personal finances, January is also a good time to set up and automate your financial goals for the New Year. As such, listed below are 2 good goals / resolutions to shoot for in 2014.

1.      Set up a Zero-Based Budget

How does traditional budget work? Essentially, you lay out some financial needs for the month ahead, and if saving or investing money is included on the priority listing, you commit whatever amount you have leftover at the end of a pay period to your saving goal. The problem with this is that life gets in the way, and there never seems to be any money left over at the end of the month, correct?

In comes zero-based budgeting.

Similarly to regular budgeting, with zero-based budgets, you lay out your financial requirements/wants for the pay period. However, instead of waiting until the end of the period to see if you have money left over for your strategic goals, you transfer that money out at the beginning of the period in order to get your “balance to zero,” hence the name, zero-based budgeting.

This is a very effective strategy. Give it a try and see if you like it!

 2.      Stop Paying High Interest Rate Debt

When it comes to paying off high interest rate credit card debt, a little bit of knowledge will go a long way.

One strategy that can work for providing relief from high interest credit card debt is to find a new credit card that offers a 0% balance transfer that you can transfer your higher interest debt to. This strategy often works well for fairly small amounts of credit card debt that can be paid off in 6-12 monthly pay periods.

In addition, something a lot of people do not realize is that if you are a pretty good customer for a credit card, you can often get your interest rate decreased drastically simply by calling them and asking for a discount. If the first person you talk to at the credit card company says they cannot help you, it is often effective to ask for their supervisor.

 

Filed Under: business planning

Starting Something New: How Online Commerce is Changing the Modern Retail Store

December 14, 2013 by Average Joe Leave a Comment

Retail stores are so desperate to compete with one another that Black Friday now starts right after the last slice of pumpkin pie has been devoured on Thanksgiving. The trend towards increased sales has a lot to do with the rise in popularity of eCommerce, according to Forbes. There are retail stores in New York City willing to reinvent themselves every 4 weeks just to garner the kind of interest necessary to stay in business. This is why when setting up a new business in the retail sector, it is necessary to have the kind of setup which will allow you to succeed.

Starting with the basics is always essential, according to Inc.com. The costs are going to be high, but not nearly as much as when opening a restaurant. The majority of the money you are investing will go into the inventory you are selling. You will need to have an electronic point of sale system, a theme which garners interest and the willingness to try new technology. These things will help you to get started and may even set the groundwork to help you enjoy the kind of long-term success you have always dreamed of.

Purchase the Right POS System

Selling anything requires the use of an electronic point of sale system. You no longer have to buy dedicated POS systems, which can be used for nothing other than a POS system. Now, you can purchase an entire system that is centered around the use of an iPad. This includes using a printer, card reader and cash drawer all attached to the app which is downloaded into the iPad itself. At the end of the day, you can remove the iPad and use it any way you want to. This is perfect for anyone who is thinking about starting a retail store and also owns an iPad. If not, what a great reason to purchase one! The software from the POS app can help you organize and maintain your inventory. You will not have to sit in a dark back room crunching the numbers anymore. Just take your iPad home with you and work out the numbers in comfort.

Choose a Great Theme

The theme of your retail location needs to engage the kinds of people who are most likely to purchase from you to begin with. While you may not have the wherewithal to change your theme every 4 weeks like a retail location in New York City, you can still choose an awesome theme that people can get excited about. The theme should pertain to the kinds of merchandise you are selling and the kinds of people you are catering to. Also, make sure you are being creative with your theme. The more you can engage those people who buy from you, the more likely you are to bring in even more clientele.

Try New Technology

New technology is highly important to bringing in new clientele as well. Just like using the iPad as part of your electronic point of sale system, you can use iPads to engage clients while they are looking at products. Customers are always impressed by new technology and the use of new devices can help to put you on the map for tech savvy individuals. Just don’t spend money on technology just to have it. Make sure you invest in technology that is functional as well as cool looking. This way, you will get more than just some interested glances from the people who enter the store. Using these can help to set you apart from the other businesses without putting your business in jeopardy.

Filed Under: business planning

Savvy Spending and Credit Cards

June 16, 2013 by Average Joe 1 Comment

Credit cards are one of those areas that are often misunderstood. Like any form of borrowing, there are a few inherent risks but credit cards can prove very useful.

With this in mind, here is some useful information about how such a card may benefit you. If this sounds like something that could prove to be an advantage then you can apply for an online credit card quickly and easily.

It is important to remember that credit cards are optional, of course, but having one can certainly provide an important safety net.

How can it help?

Credit cards allow you instant access to credit. As a card, this essentially allows you to borrow credit when and where you need it. There’s no negotiating either, since you only borrow the exact amount of the expense needed.

It’s still credit and, as such, is expected to be paid off but its position as revolving credit means that whilst you pay off the balance regularly you’re still free to use the card should you need to. Where you need money urgently this can be a real lifeline and means you don’t have to constantly submit new credit applications each time you need additional cash.

Who is it for?

If you’re wise with your money and understand when you should and shouldn’t spend money then a credit card can prove advantageous. Likewise, there are some competitive options too. Some credit cards may be designed for full-time workers and there are others designed for those with poor credit ratings. You can also look at credit cards for students which, again, helps provide a form of borrowing for a specific financial situation and consumer.

Other benefits

The main benefit of a credit card is the instant borrowing. Credit cards are flexible options, allowing you to borrow both small and larger amounts if and when it’s needed.

A lot of cards can also offer you competitive rates. The aquacard classic offers a rate of 32.9% APR. The aqua advance, on the other hand starts at 34.9% APR but if you keep to your credit limit and repay on time you will receive an annual reduction of 5% for the first three years your APR drops to 19.9% by the end of that term.

Furthermore, most credit cards don’t add interest if you pay off the balance within the month. As such they can be used as an ideal form of cash advancement. If you only borrow what you know you can pay off then you’re not losing money in the process.

Filed Under: business planning

Year End Business Tax Planning – Stop Uncle Sam From Eating Your Lunch

December 20, 2012 by The Other Guy 29 Comments

Two weeks ago I received a call from an agitated client: “O.G.!  I need your help. My taxes are going to be out of control!  We made too much money this year!”

My first thought: “Oh, poor baby.  You’ve made too much money.”

Then I ran to the nearest phone booth, twirled around in it a bit, and walked out the looking the same as I had 30 seconds earlier, although I was much dizzier.

Time to be the last-minute tax superhero!

If you own a business and you’re doing a little accounting at the end of the year piling up your nickels, you may notice you have a little extra scratch laying around.  The bad news is that if you’re like most business owners, whatever is left as of December 31 is rolled up to your personal tax forms and you’re going to pay taxes on it, no matter what your plans are.

For example: You paid yourself $50,000 in 2012 and your business now shows a $50,000 profit.  If that extra $50k isn’t spent or expensed by December 31, you’ll be taxed on the entire $100,000.  Lovely, isn’t it?

Here are a couple things you can do in the 11th hour to minimize your bill:

1)    Pre-pay as many expenses as you can.  If your sudden profit is because a client paid earlier than expected, this is probably the best bet.  Take a look at January and February expenses and start writing checks.  Now you won’t have to worry about expenses next year and can rebuild your excess cash pile.

2)    Contribute to your company’s retirement plan.  If you don’t have one established already, you’re pretty limited with options, but you can contribute up to 25% of your profit if you’re a sole proprietor to your SEP IRA plan.  You have until your tax filing deadline to make that contribution, though, so no hurry.  It would make sense to reach out to a tax professional or retirement plans specialist to create a plan for the future.

3)    Give some money away – to your employees.  If you bonus employees now, there will be two benefits: first, they’ll pay a lower FICA tax before January 1, 2013 and second, you can expense the cost.

4)    Buy capital expenditures for your business.  Section 179 expenses, as they’re called, are expenses that usually are amortized but can be ‘pulled forward’ to the year of purchase.  If you’re considering a technology upgrade, or a company car, today may be the right time.

5)    Take a couple bucks and hire a good CPA, EA, or business financial planner.  The best time to prepare for unexpected profit is in August, not December.  A good advisor on your team will have mapped out all these (and other) strategies long ago and now they’ll be ready to be executed, without having to scramble through year end business tax planning.

A good CPA or financial planner will also be able to implement and run cloud financial management systems for increased efficiency.

Moving into 2013, here are a couple ‘sneaky’ tax ideas that help offset income taxes for some people:

1)    Rent your home to your corporation.  According to the IRS, “If you use the dwelling unit as a home and you rent it fewer than 15 days during the year, that period is not treated as rental activity. Do not include any of the rent in your income and do not deduct any of the rental expenses.”  Fewer than 15 days means 14 days, by the way.  Your company has to have monthly board meetings, right?  Ever consider renting a hotel banquet hall?  No?  Why not?  Oh…because it’s $1,000 a day!  Do the same thing, but from your home!  There are a lot of pitfalls here, so you have to do it the right way.  But if you had 14 corporate meetings a year…and the lease rate was $1,000 per day…you do the math.  Tax free money.  Boo-yah.

2)    Hire your kids.  If your kids are over 7 years old, they can be hired in the family business to do menial tasks.  Don’t hire your kids as Senior VP of Sales, but he or she can lick envelopes, take out the trash, etc.  Then pay them commensurate with their age and activities.  Anything up to the standard deduction (this year is $5,950) is tax free.  Pay them $10,950 and contribute $5,000 to their IRA.  Again, pitfalls abound, but it may work for you.  By the way, a $5,000 annual contribution from age 7-14 growing at 8% until age 60 is worth about $1.8 million.  Just sayin’.

3)    Establish a real retirement plan and set up a sweet company match system.  Remember, you can only do for you what you do for all your employees, so this only works if you’re by yourself.  But, you can set up a pretty sweet 401(k) plan and a stellar matching program for yourself if you want.  You just need to do it before December 20.

Hopefully this gave you some year end business tax planning ideas to mull over while you enjoy your Williams Sonoma peppermint bark next week.  Enjoy Christmas and be sure to take some days off away from work to recharge the batteries.  Smart business owners know they’re most productive when they’re fully charged up!  Merry Christmas and Happy New Year!

Filed Under: business planning, Tax Planning Tagged With: business owner cash options, extra money, year end bonuses

How To Start Your Own Business

October 20, 2012 by Average Joe 18 Comments

It doesn’t matter why you start: whether you’ve become part of the unemployed, need to supplement your income to pay for a child’s college education, or simply have a passion to “strike out on your own,” starting your business is a worthwhile goal.

More Americans are entering the world of entrepreneurship than ever before. In a July 2012 interview with Forbes magazine, Jack Sunderlage, Executive Vice President of National Sales for Grow America, reported that more than 11.5 million new U.S. businesses have emerged since March 2011.

What does it take to start your own business?

1. Decide what type of business you want to start.

You may not have a clever, new idea that the world will find fascinating and jump at the chance to buy from. However, there are many businesses of the “same old type” that you might be able to run better than those around you.

For instance, the salon you frequent is close to home, yet you have to sign in and wait for up to an hour for service and it lacks a certain “atmosphere.” You just want to get in and out as quickly as possible. But the salon on the far side of town has a more relaxing air about it, and they take appointments. If it were closer to home, you’d probably go there instead. There are many businesses you have an opinion about, yet can’t avoid because you need their services. If it were your business, you would know what changes you would make.

Think about what you would want out of a business as a consumer. Now is your opportunity.

2. Create a business plan.

Don’t worry about writing a lengthy business plan with 5- and 10-year projections. You can start out small and keep it to one or two pages. Include what your business will be, to whom you’ll be selling services or products to (your target customer), how much you’ll charge, and how you plan to do it. This includes what resources you’ll need, including location, staff, furniture, supplies, equipment, telephone, utilities, internet connection, POS (point of sale) system — and what your estimated start-up costs will be.  Research and comparison shopping can help to reduce your operation costs.  For example, investing into a MegaPath internet service can help reduce your total online costs.   Also note how you’ll pay back your start-up loan, if necessary, and how long it will take.

3. Determine how much to charge.

Besides researching what similar businesses charge, ask yourself what kind of income you need to earn. Don’t expect to get rich the first year; be realistic about the growth of your company. List your expenses, such as rent, payroll, taxes, insurance, utilities, consumables, and other monthly costs.

4. Establish how you’ll receive payment from customers.

Getting paid in cash is nice, but most people don’t pay in cash these days, nor write checks. You’ll want to establish a merchant account so you can receive payments by debit and credit card. This is otherwise known as “payment processing.” Payment processing services work with a bank to securely handle debit and credit card transactions. These services will also help to reconcile your accounting to ensure all payments were made to your account. There are many different plans and services offered, so be sure to research several to determine the most quality with the best rates that suits your needs. For help comparing rates from different payment processing companies click here.

5. Get help.

Seek some advice from a new business resource, such as the Small Business Administration and Entrepreneur Magazine. Both of these sites have excellent resources and tools to help steer you in the right direction.

Don’t let fear of the unknown get in the way of starting your own business. It’s an exciting, challenging, yet rewarding opportunity!

Filed Under: business planning

Are You an Overnight Success Waiting to Happen? Our Cuppa Joe Discussion.

May 31, 2012 by Average Joe 15 Comments

Having found out today that the Zune is probably dead, I look at Microsoft and think “this was a good idea gone wrong.” From outside appearances, Microsoft never really identified what the brand “Zune” stood for. At one point it was a music player. Then it was a music service. Now, because Microsoft couldn’t make up it’s mind, it’s soon to be nothing. It seems to be a textbook case of jumbled product design.

The iPod never had that problem.

From the beginning, there was clear differentiation between the iPod and iTunes. One was a service, the other a little sexy looking hard drive that Apple marketed as a music player.

 

Cool Design Alone Doesn’t Win the Day

 

But people forget that the first iPod wasn’t a blockbuster; quite the contrary. Initially, in 2002 iPod sales were about 40,000 units a month. That may sound like a ton, but not when compared to the 56 million iPods sold in 2008. The product took some time to catch on. It took consistent backing of the manufacturer and a laser-like focus on the end product without distractions.

In the short time I’ve been blogging, a good number of well-designed and well-written sites have disappeared. I’ve watched blogs implode under the weight of the writer’s unrealistic expectations that if they wrote something (anything) the market would come running immediately.

This “quick success” isn’t limited to blogging. Restaurants open daily without any real planning and end up highlighted on the Gordon Ramsay show Kitchen Nightmares. Viewers like me ask “what were they thinking?” as you see people ill-suited for prime-time trying to run a restaurant.

There are other industries: tech gambles, films, online stores, retail and B2B operations. In each category you’ll find businesspeople who were hoping for quick riches. Success

In forums I’d see new owners complain that people weren’t coming to their site/restaurant/store. They’d rail against the injustice of lesser companies gaining the traction that they’d wished for. I wasn’t ever surprised when these businesses were gone in a hurry. Inspiration is great, but it doesn’t create an overnight success.

I think you start to understand business when you realize: you won’t be an overnight success. At that point, you’ll go into business with a clear understanding of what it’s going to take to succeed: tireless effort and a long-standing belief in your product.

The band Silversun Pickups was nominated in the Best New Artist category at the 2009 Grammy Awards. The band had been around since 2005….four years! Lead singer Brian Aubert, when asked about the three-year-late New Artist nomination answered: “It’s not lost on us how lucky we are.”

 

People want instant success, but the wise entrepreneur is ready for the long haul, and feels lucky when they finally find their audience. In most businesses, you don’t have to fall into the “get rich now” trap.

Instead, you can take the longer view:

1) Revisit your product. Do you have a jumbled message or a well-designed idea?

2) Realize that you have a cool product and treat it every day as awesome.

3) Interact with your audience in a way that cool companies would interact with their fans.

4) Be patient, but continue seeking out opportunities to invest in yourself and your chance of success.

Sure, sometimes you run out of patience or money. But if you’ve gone into business with the long view, rather than the “I’m gonna get rich quick” attitude, you’re far more likely to win because you’ve set up your business plan expecting it to be a marathon, not a sprint.

Who knows, four years into your new venture, like the Silversun Pickups or the iPod, you might be the next overnight success.

 

How do you remain patient about your business?

Filed Under: business planning, Cuppa Joe, Planning

The Worst of the Free Financial Advisor Episode 6: Top 5 Business Start-Up Tips

April 23, 2012 by Average Joe 6 Comments

Download the current episode my right clicking here.

Not sure how to download a podcast to your iPod? It takes less than five minutes and is very easy. Here’s the link to the Apple page explaining how to do it.

 

 

Paula Pant from AffordAnything joins the Roundtable Crew to talk tiny houses. I’m sure this site is worth a ton more because Paula agreed to hang out with us.

Show Notes:

<open> Show stats from Libsyn.com, our host. We have over 70 listeners (shortly after recording we reached 85!).

<9:16> OG & Joe’s financial concerns: OG is buying a car and Joe can’t stop going to restaurants

<17:09> Fractional Cents w/ PK from DQYDJ.NET – Kelly Criterion.

<26:52> The Roundtable: Tiny Houses

We discuss Sicorra’s piece: These Tiny Houses Fascinate Me

<58:41> Top 5 Tips to Start a Business

Books mentioned: Ravings Fans, The E-Myth, The Goal, Execution

(check these books out.  On Amazon right now, they’re all about 45% off…)

 

On the Sites:

Your Finances Simplified: Stop Paying Your Mortgage Today!…and be a Victim!

Len Penzo dot Com: Use a Ledger to Teach Kids Money Management Skills

The Millionaire Nurse Blog: 20 Ways to Improve YOUR Customer Service

Afford Anything: We Bought a Second Rental House!

 

The segment that shall not be named wasn’t included in this week’s show. Our Roundtable ran long.

 

 

 

 

 

Filed Under: business planning, Podcast

  • « Previous Page
  • 1
  • 2
  • 3

Join Our Newsletter
  Thank you for Signing Up
Please correct the marked field(s) below.

1,true,6,Contact Email,21,false,1,First Name,21,false,1,Last Name,2



Redventures


FOLLOW US

Search this site:

Recent Posts

  • How long should you keep financial records after a death? by Jacob Sensiba
  • What Advantages and Disadvantages Are There To… by Jacob Sensiba
  • How to Recover Pay Stubs From Your Old Job? by Susan Paige
  • Financial Planning Basics: The Financial Pyramid by Jacob Sensiba
  • 7 Essential Benefits of Using Prepaid Cards by Susan Paige
  • In a Pinch? 7 Legitimate Ways to Get Money Fast by Susan Paige
  • Watch the Market: Stock Trading Apps for First-Time… by Susan Paige

Partners




Financial advice on investing: Simplified. Get Stock Advisor for less than $.28/day!

Real Estate Crowdfunding

Compare business electricity

Copyright © 2021 · News Pro Theme on Genesis Framework