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How to Help Your Small Business Recover After the Holidays

January 7, 2019
By Connor Wilson –

Small business meetingEvery year, businesses the world over spend a significant amount of time and money ramping up for the holiday season, and then, just like that, it’s over. As quickly as Halloween seemingly rolled into Thanksgiving, the New Year is here, and the holiday rush is a mere memory. But what about your business efforts? After weeks, if not months, of running at max strength, what do you do once the inevitable Q1 lull hits?

As you close out 2018 and dig your feet into 2019, it’s important to address the unique needs of this slower period, and in doing so, prepare your business for not only the first quarter, but for the rest of the year. Not sure where to start? Here are six tips to help you decelerate business and make the most of down time. (more…)

Common Pitfalls in Business Credit Cards and How to Avoid Them

December 17, 2018
By Linsey Knerl –

Almost every modern company runs on some form of credit these days. Even the most profitable businesses benefit from having a line of credit available for emergencies, well-planned purchases for perks, or improving their credit score. According to the Small Business Administration, 65 percent of small businesses rely on credit cards, but just 50 percent use business cards in the name of their company. This strategy can potentially harm a business owner’s personal credit, and it limits the opportunities to get business funding in the future.

If a business credit card is the wiser choice, why doesn’t everyone get one? For being a very astute business move, cards have their drawbacks. Here are some of the ways that business credit cards can do more harm than good and keep you from achieving the most important growth goals. (more…)

Rules of Thumb and Business Valuation

December 3, 2018
By Shawn Hyde, International Society of Business Appraisers (ISBA) –

Take a look at your thumb. Now compare your thumb to another person’s thumb. There are differences in size, shape, manicure, strength, and flexibility between these two thumbs. Remember this comparison, as we will come back to it at the end of this article.

A Rule of Thumb is a brief measurement, typically based on a specific part of the operations of a business, such as revenues or some other easily calculated income stream, including Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA). The application of a rule of thumb includes some basic math, usually multiplying the selected source of income by a range of numbers.

Each industry, or type of business, usually has three or more different valuation rules of thumb that could potentially be applied to it. This means there are literally thousands of different rules of thumb that are available to provide indications of value for different types of businesses.  (more…)

Filing IRS Form 1099-MISC For Independent Contractors

November 13, 2018
By ComplyRight –

Tax PrepIf you work with independent contractors, you have to file a Form 1099-MISC with the IRS at tax time. Essentially, the 1099-MISC is to contractors what the W-2 is to employees. It covers income amounts, while also indicating you haven’t deducted any federal, state or other taxes.

Here are answers to common questions about filing requirements:

Q: What is the purpose of the Form 1099-MISC?
A: The form is used to report payments of at least $600 to any service provider (i.e., contractor, freelancer, consultant) who isn’t an employee. If the service provided was less than $600, you don’t need to file a 1099-MISC. One monthly payment of $300 wouldn’t require you to file the form, for example. But two separate $300 monthly payments within the same calendar year would. (more…)

Guide to Setting Prices

November 5, 2018
By Jennifer Lobb –

Price TagPricing can and often does make or break your business, and hastily setting prices without addressing important concerns can result in a whole host of problems, including plummeting margins, decreasing market share, or brand alienation.

Every business is different, and in many cases, the pricing strategy you choose is entirely reliant on the industry in which your business exists. However, though differences are plenty, there are some steps that, when incorporated into pricing efforts, will help you set prices that will support your financial goals while growing your business. (more…)