Well you finally reach retirement, now what? Part of the dream, for most of us, is having more time to start charting our own coarse. No directives, company policies, assigned projects, I could go on and on. I did find myself wanting more time to play but also did not want to totally give up an opportunity to challenge myself and to also add a little to the retirement income so I could continue to buy a few toys. So almost six years ago now I started to work on goals to start a small business.  My son, wife, and I,  started a video production company. We invested some money in needed initial equipment and train ourselves in how to operate field equipment, operate editing equipment, and the manage the software that goes along with it. As with most small businesses we had several directions that did not work out so well but finally found a niche in filming and producing emergency preparedness videos. My job has been to help bring in business and assist in the field with one of our HD cameras and general setup. It has been fun and challenging but not over taxing.

I also do a little business consulting just to keep my business experience levels up to date as possible and we are exploring developing some Iphone apps. The bottom line is that if you want to retire, DO IT. I’m not the smartest guy in the wood pile but you don’t have to be. Don’t be afraid of trying something new to have some fun and bring in a little money. You know now you do not have to be worried about some corporate boundary.  So, develop a business plan, set some goals, test the market, and eventually you will hit on something you like and is marketable. Always remember to put out the best product you can, take care of your customers, and follow up with contacts you have developed. In all that remember also that you are retired so leave yourself lots of time to play as well. We are in prime time so every experience is important from here on out.

Get out there and have some real fun before it’s to late!

Business Mole

• Make sure that all the organizations leadership regardless of function are directly linked to the bottom line within their annual goals and objective responsibilities. This also means making sure to review with them how they are doing and how they are affecting the bottom line during the year. This also gives you and your organizational leaders an opportunity to make sure they are not developing additional strategies that are not in line with goals and therefore taking both them and employees away from their core responsibilities.
• Take time to get feedback from employees who have direct market or customer responsibilities to make sure that they and your organization are focusing on things that will help you reach your goals.
• Orientations are not just for new employees. Make sure that, no matter how big or small you are, that you give all employees enough information about how the organization is progressing so that they can do an assessment of what needs to be done to stay on track during the year.
• My pet peeve, if you have employees in distant locations don’t ask them to drive two hours for a one hour meeting unless it’s damn important. Don’t let your ego get ahead of logic and don’t invalidate hard working employees by asking them to waste part of their day.  If its general information put it in an email or memo.

One of the reasons small and large organizations fail is that they think they are more important then their customers. Don’t do it!!! Remember the customer is King and next in line are your employees. Make sure you help your organization be the winner it should be.

Don McDaniel – Vice President

Discovery Bay Group L.L.C.

donm@cablespeed.com

By: Don McDaniel VP – Discovery Bay Group L.L.C.

No doubt that last couple of years have been a big economic challenge for all businesses. The one thing for sure to remember about the economic downturn is that you, as a small business owner, will get no bailouts if you get into trouble. Although the economy is a little better we still have some challenging times ahead  in the future. My guess is that we will be digging out for the next couple of years minimum. So What should we do to protect our portion of the marketplace. Here are some basic ideas that I know you already are acquainted with but maybe need to reconsider:

1. Review, update and work even harder to retain the customers you already have by making sure your pricing, customer service strategies, and product delivery efforts are over the top. Don’t just think about it!!! Get your staff together to review and develop new strategies going forward. Your customers are having economic problems also so make sure you give them every reason to spend their limited funds on your products.

2. There are few small business quotes that had more impact on me then, “Innovate or Die” did. Look for new ways to stay in and grow your market. Look for new product lines, new marketing strategies to grow the business,  more efficient delivery systems,  and ways to improve on service.

3. Do a current break even analysis and do a product pricing review to make sure that you are staying up with your competition. Make long term pricing strategy changes where necessary and take a look at short term pricing strategies that will help boost your identity within your target customer group.

4. Do an organizational review of contractors, staff, and all associated expenses,and make adjustments where possible. This is one area you should be looking at each time you do a quarterly review of your business.

5. In a small business relationships are important both for long and short term success. Create a plan to involve you and your staff in areas that will create added credibility and loyalty within the community where you are doing business.

I’m sure there are a lot of other good ideas but we have used these as our first tier objectives in efforts to improve our revenue stream and grow our business long term.

DonMcDaniel -  VP Discovery Bay Group L.L.C.

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.

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.

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.

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.

By Rosemary Peavler, About.com Guide to Business Finance

1. Begin with a statement of purpose. You should be able to explain your business in 25 words or less.
2. Tell how your business will work and why it will be successful. List the owners.
3. Fill in the business details. Describe its products or services, the customers,the market and the competition. List the managers and their credentials.
4. Supply three years of projected financial statements. Include income, loss, and cash-flow projections.
5. Provide supporting documents, such as references from creditors and potential clients and suppliers, evidence of insurance and the like.

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