The Business Mole

It’s a truly a great little program that does wonders for the flight simulator experience. I recently had to re-format my hard drive on my computer to make way for Windows 7. In the process my original key code used to re-install the program showed as ” no longer valid”. I went to the site and posted on the support forum and also sent a separate email asking for a new code and giving my original purchase information. Well folks it has been since May and after many emails and postings still no code. The site admins tell me that the owner is very busy and will get to it when he can. The forums are filled with discontented customers like myself with the same issue. Now new potential customers are becoming concerned about even purchasing this product. This is a sure way to kill your market place potential for good even if your product is a good one. My recommendation is make sure you maintain enough resources to assist folks who need your help and handle them as quickly as possible. Once the word gets out that your support and customer service is flaky you will fail even if your product is a good one.

By: Ben Johnson
Alliance Manager
Logoinn

Email: ben.johnson@logoinn.com

http://www.logoinn.com
P: (US) 1.800.941.0708
(UK) 0.800.678.5646

One of the most satisfying tasks while setting up your own business is developing your business logo. Logo is a symbol that identifies a company, and is often used to project a company’s intended image.

A well designed logo is not only attractive but also simple enough to tell the purpose or nature of the company easily. Such a logo shows that company has strong commitment to quality and professionalism. On the other hand a badly designed logo is often associated with businesses that are undercapitalized and poorly organized.

Entrepreneurs mostly do three common mistakes while designing their logo. Eventually, these mistakes develop negative impression on the prospective customers, and instead of success, a business has to face decline regardless of the fact that all other branding elements are fine.

Mistake 1: Not designed by a professional logo designer: Designing a logo is not a pastime of amateurs. Usually, logos that are designed by non-professionals are unable to portray the right message. Hiring a professional logo designing company is always the right choice. They have a better understanding of using shapes, fonts and color, and you get the true return if designed by them.

Mistake 2: Not designed for all mediums: Secondly, your logo should be designed for all the available marketing and advertising mediums. It would be a biggest mistake to design a logo for one media type and the logo look awful on another type of media. No matter how much beautiful looking your logo is but if it is not compatible with all mediums, it’s a waste of resources. Therefore, during the designing phase, make sure to make it looks great wherever you use it.

Mistake 3: Complicated design: Complexity in a logo is a killer of your brand image. Too many colors, complicated images and unreadable fonts will make your logo complicated and knotty.  Complex logos are difficult to apprehend and thus can be rendered ineffective.

Unfortunately, recession is already shaking the businesses, and at the same time, if you are unable to portray the right message to the right audience, all your survival efforts would become useless. Research shows that about half of all businesses fail within their first year. One reason of failure that is commonly mentioned by experts is poor or ineffective marketing, and if your logo, which is a greatest marketing tool, does not stand out from those of your competitors, your sales will suffer and resulted in failure of business.

]]> http://www.smallbusinessmole.com/?feed=rss2&p=989 http://www.smallbusinessmole.com/?p=982 http://www.smallbusinessmole.com/?p=982#comments Mon, 23 Mar 2009 20:28:42 +0000 admin http://www.smallbusinessmole.com/?p=982 Today’s tip is brought to you by Business Week. We also encourage you to visit Tom’s site for more information.

Opinions vary about efforts to make it easier to get an SBA-backed loan, but certain entrepreneurs should still apply, says Tom Taulli.

The Business Mole

Article By: Tom Taulli
Small Biz
http://www.bizequity.com/

* The Pros and Cons of Easing Access to Credit
* The Right People vs. Getting the People Right
* Tax Advice from a Former IRS Auditor
* After Layoffs, Starting a Business from Scratch
* Self-Help for Startups

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President Barack Obama and Treasury Secretary Timothy Geithner recently announced sweeping changes for the Small Business Administration’s loan programs. Are these changes simply smart public relations or will they benefit small business owners whose access to credit has dried up? Opinions vary within the business community, but entrepreneurs should still consider applying for these loans—as long as they meet certain criteria. Bear in mind: The SBA doesn’t make loans directly to business owners; it guarantees them to commercial and nonprofit lenders that participate in its programs.

Before I explain the specific changes, let’s step back and review the relevant parts of the announcement: Obama plans to commit up to $15 billion to make direct purchases of SBA-backed loan securities in the secondary markets. Keep in mind that lenders often sell their loans to Wall Street, which frees up capital to make even more loans. But in September this market froze as the financial system went into cardiac arrest. The Obama Administration is now committing the money in hopes that by supporting the secondary market, lenders will gain their confidence back and make new loans.

The plan will also require that the largest 21 banks—that received federal bailout money—will now have to detail their small business loans on a monthly basis. Additional banks may be required to do this quarterly. In other words, this measure is meant to pressure lenders to make more loans.
Encouraging Lending

Another change is a boost in the loan guarantees, to a maximum of 90% on 7(a) loans (see below for more on these). To encourage these loans, which are generally considered riskier than most by lenders, the SBA is increasing the amount of its guarantee, which helps to encourage lending. While this increase sounds small, it is important. “Lenders are concerned about default rates on loans,” says Scott Gabehart, a business appraiser who operates TheNewSBARules.com. “But an extra 5% of coverage may be enough to provide comfort for lenders.”

The Obama plan also has important changes for different types of loans. To understand them, here’s a rundown on the main loan programs. You can find a list of preferred SBA lenders—lenders that don’t need to consult the SBA on each loan application—at the bottom of this page on the SBA’s Web site.

7(a) loans Up to $2 million. The purpose for the capital is broad (expansion, acquisitions, startups, franchises, equipment, and even partner buyouts).

504 loans Up to $12 million. The main focus is on construction, renovation, or purchase of commercial property.

Microloans Up to $35,000. Typically for working capital needs—that is, cash to pay for short-term needs such as payroll and vendors.

The changes also mean the government will eliminate SBA fees you would normally pay your lender on 7(a) and 504 loans (to the extent of the guarantee). Generally, the fees will range from 2% to 3.7% on 7(a) loans and 1.5% for 504 loans. That means, for example, you could save $6,600 on a $200,000 7(a) loan and $3,000 on a 504 loan (assuming a 90% guarantee).

When you account for the new depreciation regulations, eliminating those fees makes these loans attractive, right? The Obama plan allows for up to $250,000 in deductions for business expenses for one year. For example, if you use an SBA-backed loan to purchase a business or property, you can take larger depreciation expenses, and these tax benefits will help to boost cash flow. Another favorable factor: The valuations for businesses and land are much lower now than in the recent past.

Still, the fact remains that banks will likely focus on what they deem the safest customers—at least at first. So a borrower will need a strong business plan and detailed financials to be considered. Moreover, the owner should have a background in the industry. Even if you meet this criteria, expect much scrutiny. The banking industry is in the process of healing. So it will take some time to warm up to more risk-taking. “Lenders will look for skin in the game,” says Chris Reilly, president of CIT Small Business Lending (CIT), the country’s largest 7(a) lender. “This means providing a personal guarantee or collateral.”

During downturns, great opportunities arise. And this time is no different. If anything, the federal government is willing to make substantive changes to spur lending to small business. If you can demonstrate that extra funding will lead to growth, then an SBA loan is certainly a worthy option.

Tom Taulli is a noted finance author and blogger.

Here is the latest today on the President’s small business bail out plan. Take a look and if you make any comments we will pass them along. Things have eased up a little on the markets but we still have a long way to go. Hopefully this latest plan will continue some positive movements toward recovery.

Obama Small Business Plan: SmallBusinessFinal.pdf

Small-business groups had rallied for an economic-stimulus plan packed with generous new tax breaks and other relief measures making it easier for businesses to grow and hire employees in this tough economy. Well, they aren’t too pleased with the outcome.

“There’s not a lot in the stimulus plan that will put cash in the hands of people who will deliver it to the front door in the form of sales,” William Dunkelberg, chief economist with the National Federation of Independent Business, told the AP. Rather, he and others said the compromise plan finalized yesterday seems to focus on padding consumers’ pockets, with the assumption that the money will eventually trickle down to businesses.

NFIB and other small-business advocacy groups had pushed for measures such as a six-month payroll tax holiday, doubling the tax deduction for start-up companies to $10,000 from the current $5,000, and exempting an entrepreneur’s first $30,000 in net earnings from tax. While it’s still unclear what will be in the final compromise, it seems the business-focused measures were limited to ones that many business owners felt were less-than-adequate, including extending loss carrybacks to five years (now limited to just small businesses) and and continuing an expansion of Section 179 deductions to $250,000 on purchases of equipment such as computers, furniture, machinery and vehicles.

What’s more, some groups fear the compromise stacks extra, new burdens onto entrepreneurs that will make life harder than before. The Small Business and Entrepreneurship Council yesterday sent out a last-minute plea to strip the bill of the “Buy American” provision that will force the government to purchase all material goods used for public-works projects – claiming the international backlash created by such a measure will hurt small exporters. That provision was softened in the final compromise to say that the U.S. must comply with World Trade Organization rules, but critics still think it will have negative repercussions. The group also asked Congress to remove new rules that would force businesses to extend health insurance to laid-off workers with 10 years of service, and to get rid of verification and wage rules it says will make it difficult for small businesses to vie for government contracts.

“I think we clearly need a different type of package,” Raymond Keating, chief economist for the Small Business and Entrepreneurship Council, told the AP. “We need incentives in the private sector for people to take risks and expand business. Unfortunately, there’s very little of that in this package.”

This article was posted on the following website: http://blogs.wsj.com/independentstreet/2009/02/12/small-business-groups-critical-of-stimulus-plan/. There is a comment blog there so if you have any comments we encourage you to visit the site and make a comment.

Our feeling is that if the credit market loosens, investor confidence in the banking system improves,  things will get a lot better for small businesses like ours hopefully this year. No doubt that we are all getting a red rash out of having to bail out big banks and wall street but I’m willing to swallow a little sour milk for the honey later. Sure hope we get some of that honey soon.

The Business Mole

Tax season is not a time any taxpayer particularly relishes, and small-business owners are no exception. However, entrepreneurs who play their cards right can ensure tax time is a little less burdensome.

Here are seven ways to reduce your small-business tax burden:

1. Hire Family Members:

Uncle Sam is especially friendly to family businesses when it comes to wages. You won’t need to pay federal unemployment taxes if you hire your spouse or parents, and you may not have to withhold income taxes and Social Security if your children work for you. You must still follow child labor laws, pay reasonable wages and make sure that the work benefits your company to qualify for these exemptions.

2. Hire Independent Contractors:

By hiring independent contractors, you won’t need to withhold federal or state income taxes from their earnings, nor will you have to pay the employer’s share of Social Security and Medicare taxes or provide unemployment benefits. Just make sure that the IRS doesn’t consider your contractor an employee, or you’ll have to pay back taxes and fines. Seek the advice of a tax professional before you classify someone as an independent contractor.

3. Maximize Deductions:

Two ways of maximizing deductions are keeping excellent records and receipts and relying on a tax professional for guidance. Here are some key categories to consider for write-offs: start-up costs; office expenses; furniture; education; travel; insurance; memberships; and conferences.

4. Pay Your Bills by Year’s End:

If your business-related bills (rent, phone, electricity, etc.) are due in early January but cover expenses incurred in the previous year, pull out the checkbook before the start of the New Year. All of those expenses can help reduce your tax burden in mid-April.

5. Purchase What You Need – Now:

You may be waiting for a tad more revenue to trickle in before you replace your old computer or subscribe to that impressive new industry magazine. But tax-wise, it’s smarter to invest in your business now rather than waiting for the New Year. Poor equipment in particular can cause headaches for small businesses: Help yourself by fixing or replacing worn-out products next week and get some of that investment back in deductions that could return you money next year.

6. Give to Charity:

That old computer you just replaced could aid a non-profit organization that can’t afford new equipment while reducing your small business’s tax burden. The IRS gives tax incentives for donations, so take advantage of them. Before making a donation, check to ensure that the charity is qualified and that donations are tax-deductible. The IRS also requires that you have written acknowledgment from the organization for contributions of or valued at upwards of $250.

7. Hire Katrina victims:

The “Work Opportunity Tax Credit” (WOTC) program, which incorporates the “Welfare-to-Work” federal tax credit, are incentives designed to encourage the hiring of individuals from certain groups that have an especially high unemployment rate or other special employment needs, such as veterans, ex-felons and high-risk youth. That credit has been expanded to include persons affected by Hurricane Katrina. Businesses that qualify to participate in the WOTC program can reduce their federal tax liability up to $2,400 per hire. The Welfare-to-Work tax credit provides an incentive to businesses to help individuals move from welfare to work, and companies that hire under this category of the WOTC can reduce their federal tax liability up to $9,000 over two years for each qualified new employee.

Posted by: John Tozzi on January 28

I heard Rep. Eric Cantor (R-Va.) on the radio this morning talking about the stimulus bill the House will vote on today, and how it will affect small business and job creation.

Cantor says that he’s concerned about the size of the $825 billion stimulus package — he predicts it will grow to $1 trillion — because borrowing all that money will “dampen entrepreneurial activity.” I don’t quite get the reasoning behind this. My sense is that the size of the federal deficit doesn’t directly affect most entrepreneurs’ decisions. People with good ideas who can find a market for their products or services and get the funding to execute the idea will start businesses. If the market or the funding isn’t there, they won’t. (Or they’ll try and fail.) Where does the deficit come into whether entrepreneurs will start or expand their companies this year?

Republicans say the looming deficit is hurting the entrepreneurial environment. “We’ve got to make sure we’re stimulating investors, entrepreneurs and small business people to get back into the game,” Cantor says.

Is he saying that, in the long term, any debt we take on will have to be paid for through taxes, and that will dampen entrepreneurial activity? That’s one argument. But the stimulus plan contains tax cuts to get people spending now — as much as 40 percent of it will be tax cuts. So I don’t see how it dampens entrepreneurial activity.

What the stimulus plan does have, however, is government investment (yes, spending) in areas that seem ripe for entrepreneurial activity: making health care more efficient by computerizing medical records; developing new sources of clean power and smarter electrical grids; and investing in science and technology.

Talk to anyone in the clean tech industry — which venture capitalists are betting heavily on — and the biggest problem they will tell you about is inconsistent government support for developing renewable power. The stimulus bill seems intended to create and sustain new markets, like renewables, for entrepreneurs to step into, and the results of that spending could make our economy more efficient in the long run.

It’s hard to say whether this is the best bill for small business. But tired arguments about how deficit spending automatically “dampens entrepreneurial activity” seem too simplistic for the challenge the economy faces now. So, entrepreneurs, what do you think of Cantor’s statement? What do you want to see in the stimulus package? Will help your business? If not, what would?

There are approximately 25.8 million businesses in the United States and over 99 percent of all employers are small businesses, according to the U.S. Small Business Administration. Barack Obama and Joe Biden will help small businesses by cutting health care costs, improving access to capital and investing in innovation and development.

Lower Health Care Costs with a New Small Business Health Tax Credit: Barack Obama and Joe Biden understand that the skyrocketing cost of healthcare poses a serious competitive threat to America’s small businesses. Small businesses are the drivers of job growth in our economy, creating, on average, more than two thirds of net new jobs each year. Yet small business owners face unique challenges in providing health care to their employees, including higher administrative costs, lower bargaining power, greater price volatility and fewer pooling options. Barack Obama and Joe Biden will reduce the burden on small businesses in our economy by offering a new Small Business Health Tax Credit to help small businesses provide quality health care to their employees. The Obama Small Business Health Tax Credit will provide a refundable credit of up to 50 percent on premiums paid by small businesses on behalf of their employees.

Obama’s Small Business Health Tax Credit will work alongside other aspects of his health care plan to lower costs and improve competitiveness for America’s small businesses, including:

• Access to a Low-cost National Health Exchange: The Obama health care plan will provide small businesses with new opportunities to buy low-cost, high quality health plans for their employees through a national exchange similar that will allow small businesses to get the same benefits of spreading risk and administrative costs over a large pool that larger businesses currently enjoy.

• Reduced Volatility and Lower Costs by Reimbursing Catastrophic Costs: The Obama plan will reimburse employer health plans for a portion of the catastrophic costs they incur above a threshold if they guarantee such savings are used to reduce the cost of workers’ premiums. This reimbursement (often called reinsurance) is particularly important for small business plans, which can be overwhelmed by the costs of catastrophic expenditures for even a single employee.

• Investment in Cost Reduction and Quality Improvement Strategies: The Obama plan will

aggressively lower health costs by facilitating broad adoption of standards-based electronic health information systems, and other value-increasing innovations improving chronic care management, and increasing insurance market competition.

Provide Zero Capital Gains and Other Tax Relief for Small Businesses and Start Ups: Barack Obama believes that we need to reduce burdens on small business owners, many of whom are struggling to succeed as health care and energy costs continue to skyrocket. Barack Obama and Joe Biden will eliminate all capital gains taxes on small and start-up businesses to encourage innovation and job creation. Obama and Biden will

support small business owners by providing a $500 “Making Work Pay” tax credit to almost every worker in America. Self-employed small business owners pay both the employee and the employer side of the payroll tax, and this measure will reduce the burdens of this double taxation.

Expand Loan Programs for Small Businesses: Access to capital is a top concern among small business owners. Barack Obama cosponsored the bipartisan Small Business Lending Reauthorization and Improvements Act. This bill expands the Small Business Administration’s loan and micro-loan programs which provide startup

and long-term financing that small firms cannot receive through normal channels. Obama and Biden will work to help more entrepreneurs get loans, expand the network of lenders, and simplify the loan approval process.

Support Innovation and High-Tech Job Creation: Barack Obama believes we need to double federal funding for basic research, diversify energy sources, expand the deployment of broadband technology, and make the research and development tax credit permanent so that businesses can invest in innovation and create high-paying, secure jobs.

Create a National Network of Public-Private Business Incubators: Barack Obama and Joe Biden will support entrepreneurship and spur job growth by creating a national network of public-private business incubators. Business incubators facilitate the critical work of entrepreneurs in creating start-up companies. They offer help designing business plans, provide physical space, identify and address problems affecting all small businesses within a given community, and give advice on a wide range of business practices, including reducing overhead costs. Business incubators will engage the expertise and resources of local institutions of higher education and successful private sector businesses to help ensure that small businesses have both a strong plan and the resources for long-term success. Obama and Biden will invest $250 million per year to increase the number and size of incubators in disadvantaged communities throughout the country.

Invest in Women-Owned Small Businesses: Women are majority owners of more than 28 percent of U.S. businesses, but lead less than 4 percent of venture capital-backed firms. Women business owners are more likely than white male business owners to have their loan applications denied. Barack Obama and Joe Biden encourage investment in women-owned businesses, providing more support to women business owners and reducing discrimination in lending. To create greater opportunities for women business owners who would like to do business with the federal government, Obama and Biden will implement the Women Owned Business contracting program that was signed into law by President Bill Clinton, but has yet to be implemented by the

Bush Administration.

Increasing Minority Access to Capital: Access to venture capital is critically important to the development of minority-owned businesses. Yet there has been a growing gap between the amounts of venture capital available to minority-owned small businesses compared to other small businesses. Less than 1 percent of the $250 billion in venture capital dollars invested annually nationwide has been directed to the country’s 4.4 million minority business owners. And in recent years, there has been a significant decline in the share of Small Business Investment Company financings that have gone to minority-owned and women-owned businesses. In order to increase their size, capacity, and ability to do business with the federal government, and to compete in the open market, minority firms need greater access to venture capital investment, as well as greater access to business loans. Barack Obama and Joe Biden will strengthen Small Business Administration programs that provide capital to minority-owned businesses, support outreach programs that help minority business owners apply for loans, and work to encourage the growth and capacity of minority firms.

Promote Small Business Ownership in the Communications Industry: Barack Obama joined Senator John

Kerry (D-MA) in calling on the Federal Communications Commission (FCC) to immediately address the issues of minority, women and small business media ownership before taking up a second review of wider media ownership rules. Obama has continued that fight by urging the FCC to establish an independent panel on minority and small business media ownership. As president, Obama will support efforts to achieve diverse media ownership, particularly in an era of increased media concentration.

Support Local Businesses Affected by Hurricane Katrina: In the wake of Hurricane Katrina, Barack Obama introduced the Hurricane Katrina Recovery Act to rebuild the Gulf Coast. This bill included language to increase the government-wide goal for procurement contracts awarded to small businesses owned and controlled by socially and economically disadvantaged individuals for recovery and reconstruction activities related to Hurricane Katrina. Obama also established a government-wide goal for procurement contracts awarded to local businesses in Katrina-affected areas of 30 percent of that total value for 2006 and 2007.

Provide Emergency Relief: Barack Obama supported legislation to provide emergency relief to small businesses affected by a significant increase in the price of heating oil, natural gas, propane, or kerosene. This bill authorized the Small Business Administration to make disaster loans to assist small businesses that have suffered or are likely to suffer substantial economic injury as the result of a significant increase in the price of heating fuel.

Support Rural Small Businesses: Barack Obama and Joe Biden will support entrepreneurship and spur job growth by establishing a small business and micro-enterprise initiative for rural America. The program will provide training and technical assistance for rural small business, and provide a 20 percent tax credit on up to $50,000 of investment in small owner-operated businesses. This initiative will put the full support of the nation’s economic policies behind rural entrepreneurship.

Promote Digital Inclusion: The lack of affordable, high-speed Internet access in rural, urban, and minority communities has created a digital divide between those who have access to the Internet and those who do not.

This severely limits the growth potential of many urban and rural companies. Approximately only one-third of rural areas and half of urban areas have high-speed Internet at home or work. The areas affected by Hurricane Katrina have particularly suffered due to a lack of IT infrastructure. Barack Obama and Joe Biden believe we can get true broadband to every community in America through a combination of reform of the Universal

Service Fund, better use of the nation’s wireless spectrum, promotion of next-generation technologies, and new tax and loan incentives. As a key step to achieving full broadband access, Obama believes the Federal

Communications Commission should provide an accurate map of broadband availability using a true definition of broadband instead of the current 200 kbs standard and an assessment of obstacles to fuller broadband penetration.

Paid for by Obama for America

Printed in House

In a nutsell, the book suggests that Barack won with the mantra: Be Cool, Be Social, Be The Change. That’s pretty good position for any small business.