Category Archives: Business Basics

The 3 things keeping small business owners up at night.

Small business owners heading into 2018 have a lot to be happy about — but they’ve also got some major concerns about the continued success of their businesses.

Capital One polled small business owners about their hopes and fears, and here’s what the latest Small Business Growth Index has to say about their responses.

Positive Outlook

All told, small business owners feel good about their finances. Nearly half (47 percent) say their businesses’ sales rose in the past six months—the highest percentage recorded by the survey since the second quarter of 2013. Some 37 percent say their financial position has improved from one year ago, too.

But it’s not all sunshine. While small business owners are happy with their finances, they’re also wondering how long the good times will last. In fact, two of the top three concerns cited by entrepreneurs in the survey are financial in nature.  Continue reading

The Name Game – What should you call your company?

by Mary Marshall, CEO Coach

whats-in-a-name_-1-300x300When entrepreneurs start up a business one of the decisions to be made is the name. A large portion of our businesses are named after the owner (yours truly included). While this may be an easy way to get things started, it may not always be the best. As a recent New York Times article pointed out, there is both good and bad about naming a company after yourself.

On the plus side, you can build a powerful personal brand, there is a lot of recognition for you, the founder, and people like businesses that are associated with a person versus a static object or a made-up word. Assuming you have a good reputation, this can help get the word out about your new company and from then on YOU become the company and vice versa. In my consulting practice, it was easy, and it made sense as I could leverage the reputation I had built up over the years as an executive coach and strategic planner. This can also be powerful if you come from a well-known or famous family name, you can leverage the hard work of your parents or grandparents.

Read more on Mary Marshall’s website.

3 Essential Financial Statements for Your Small Business

Accurately tracking financial data is not only critical for running the day-to-day operations of your small business, but it is also essential when seeking funding from lenders or investors to take your business to the next level. In addition, keeping tabs of your finances can help ensure your products and services are priced right, identify what your margins are, determine your cash flow and make filing taxes easier.

Here are three basic financial statements that are important for your small business:

  1. Balance sheet. This statement provides an overall financial snapshot of your small business. As an equation, it looks like liabilities + owner’s equity = assets. The two sides of the equation must balance out. There are two types of assets: current and fixed. Current assets include cash or other holdings that can quickly be converted to cash within a year. These may include inventory, prepaid expenses and accounts receivable. Machinery, equipment, land, buildings, furniture and other essentials that you are not planning to sell are considered fixed assetsLiabilities can be broken down into current or short-term liabilities, such as accounts payable and taxes, and long-term debt such as bank loans or notes payable to stockholders. Owner’s equity includes any invested capital or retained earnings.  If you captured all of your accounting information correctly, both sides of the balance sheet equation should be equal. Download SCORE’s template to start setting up your own balance sheet.

Read more on the SBA.gov website.

Ask SCORE: Would your hobby make a sustainable business?

Running a successful business centered on doing something you love is the dream of many entrepreneurs. What could be more gratifying than making a living sharing your talents and skills with others?

On the Internet, you’ll find a long list of articles and resources offering advice and insight specifically geared toward hobbyists who want to take the step and go from “passion” to “profit.”   Continue reading

Ask SCORE: How can I find the right accountant for my business?

Your business success depends on many factors. Managing your money well and understanding your finances are two of the most critical. Unless you are an accountant by trade, it’s likely that you will need some outside guidance and insight as you start and grow your company.

Getting help from an accountant can benefit your business in a number of ways:

  • An accountant can inform you of legitimate ways to reduce your tax liability.
  • An accountant can make sure you are aware of reporting requirements and deadlines. If you’re not in compliance, you might have to pay fines.
  • An accountant can assist you in filing your taxes, saving you time and sparing you headaches.
  • An accountant can make suggestions that will help you run your business more profitably.

Continue reading

Your Budget: A Roadmap for the Year

by Kelly Deis of SoundPoint Consulting

It’s that time of year again. Most businesses are on a fiscal year which coincides with the calendar year. It is time to look back and reflect on 2017 as well as look forward and create a budget for 2018.

A budget is a roadmap. Based on where you have been, it can help guide you to the desired final destination for year-end.

If you stay on the current course – where will you end up? Alternatively, if you change the route – where will you be at the end of the year? It is up to you to decide which path is the most profitable and most likely to be achieved.

Here are a few things to think about as you prepare your budget.  Continue reading

8 things you can do to be taken seriously as a young entrepreneur.

By Caron_Beesley, SBA Contributor

Are you a teenager or in your early 20s? Do you have a great business idea? Perhaps you’re already making headway towards starting your own business.

But how do you get others to believe in you and your business idea?

Here are eight surefire ways that you can be taken seriously as a young entrepreneur:  Continue reading