Bad location is a fatal small biz mistake

Common mistakes can kill your small business, but most of them can be easily corrected or avoided.

Today's Bad Example: Bad Location
All business depend on location to some extent. Even if your small business is just you, the location affects your work! More often, we think of retail and food businesses that depend on walk-in traffic. Small towns especially have limits on the number and quality of usable business locations.

Many small businesses labor to overcome a bad location, with many small town small businesses operating from off-the-beaten-path or a run-down structure. Why? Because of the costs of a better location. Not only the rental or purchase cost of the new place, but also the cost in effort and expense for moving. It's also possible that no suitable locations are available in your small town.

Solutions
Put careful planning into the first or next location of your small business. You may find some useful ideas from our friend Isabel M. Isidro, who has a wonderful article on Finding the Right Location for your Small Business.

In a small town, you might wait years for a better location to open up. You might need to build a new location, or invest in remodeling an older structure in a great location. Don't underestimate the power of personal relationships. You may need to invest patient work to acquire a prime spot by convincing reluctant owners to sell.

Do you have examples?
Together, we are going to try to help each other out of these most common, deadly mistakes. You can use real world examples, real small businesses. Write it up, take a picture, or shoot a short video. Take care not to embarrass the offenders! Key point: include suggestions on how to do it right!

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Tips for tracking details in QuickBooks

As part of the Simplified Accounting and Bookkeeping series, I present an ancient handout from my days of teaching QuickBooks courses.

QuickBooks is capable of tracking an enormous level of detail and then generating reports from it. This does make the program extremely flexible, offering several different options for each type of detail. No one way is the “right” way in any given situation. Examine your options, looking for the level of detail that makes sense for your business.

Tactics for Tracking Details in QuickBooks

Tactic	Situation	Examples
Classes	a subset of both income and expenses	locations, fund, department, business segment, employee, partners, product lines
Items	products and services	specific items and services
Jobs	multiple jobs for customers	customer locations
Expense tracking	expenses incurred for a specific customer	filing fees, special orders
Built-in fields	special customer and vendor info, already set up	email address, payment terms, sales tax status, sales rep, “ship to” addresses, tax ID numbers, account numbers, credit limits
Custom fields	special customer, item, employee and vendor info, not previously covered	item color, pager numbers, employee certifications, birthdays, program participation
Customer/Vendor types	grouping customers or vendors	residential vs. commercial, remodeling vs. new work, subcontractors vs. materials suppliers vs. overhead vendors
Subaccounts	grouping of accounts with subtotals	insurance, utilities, supplies, taxes
Subitems	grouping of items with subtotals	related items, product lines
Item Group	fast entry of a set of items	items frequently entered together, sets sold together and separately
Payroll Items	workers compensation classifications	carpentry, roofing, driving, etc.
Memo	consistent coding of detail it doesn’t make sense to track other ways, or when you’ve used up other ways	repair bills by piece of equipment, RMA numbers on bill payments
Name coding	distinguishing similar names, usually with a prefix or suffix	customer who is also a vendor, similar account names, internal designations

Say it out loud with me, track only the level of detail that makes sense for your business.

©2001 Becky McCray

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Brag Basket full of peas

Each Friday, I open the brag basket as a fun place to brag or promote yourself and your projects.

This week is special, though. We are celebrating Frozen Pea Friday for Susan Reynolds, who is having breast cancer surgery today. (Why all the peas? Susan used a bag of frozen peas as an ice pack after biopsy and found the courage to write and laugh about it.) I encourage you to join me and donate the cost of a bag of frozen peas (or more) to cancer-fighting research at the Frozen Pea Fund. Then come brag about it!

Regular brags on any topic are still welcome!

You can leave a comment right now, or dm beckymccray on Twitter.

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Simplified accounting for side businesses and micro enterprises

Small and simple businesses don't require too much record keeping.

How tiny is tiny?
This article is for you if:

• you have a simple side business
• you are the only person in your business
• you sell only your own services (like a consultant)
• you re-sell products from a single supplier, or direct selling such as Mary Kay or Weekenders
  

What is the simplest way to keep receipts and totals in a tiny business?
A spreadsheet! Use paper or create it in spreadsheet software. One sheet for income, one for expenses. One column for each category you figured out with your accountant.

Staple your new forms to the outside of two big 9"x12" envelopes, one for income, one for expenses. For each expense, write the amount in the correct column and put the receipt in the envelope. For each sale (income), do the same. This is Maesz' favorite Envelope Method. It works! Tiny businesses may go a full year in one envelope. Bigger small businesses can probably do one envelope per month, just keeping them all in a big box. Simple!

At the end of the year, you just total each column. Make a copy of your spreadsheets for your accountant. That's it!

What level of detail makes sense for micro businesses?
Basically, income and expenses. You want to measure the basic profitability.

A second important consideration is tracking all the legitimate deductible expenses. Any necessary and reasonable expense related to your business can be deducted against the income you generate. If you have more expenses than income, the loss can be used to offset your other income, like salary.

Did you buy computer equipment or gadgets to use for business? Put that on your expenses list. Did you travel, drive to a customer's location? Track it! Did you pay hosting fees for your website? List that, too.

Be sure to consult with a professional about your specific situation.


What if my business is too big for the envelope system?
The next step is to keep your records on computer. That will be the subject of the next article!


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Last Minute 2007 Tax Hints

(1) Use your bank credit card to pay year end deductible expenses; 
for transactions with a bank credit card, you take the deduction
in the year that the item was charged, even if you pay the bill next year.


(2) Remember the rules for substantiating charitable contributions
as you do your year-end giving.

Starting this year, donors are required to document ANY cash donations
they make to churches or other charities, no matter how small.  

That means having a canceled check, a bank record or receipt with
the group's name and donation amount. A log isn't enough. 

If you made your donations via payroll deduction, a pay stub or W-2 form
listing donated amounts anda pledge card with the charity's name are OK.

Brag Basket covers the fun and the serious

Each Friday, I open the brag basket as a fun place to brag or promote yourself and your projects.

Last week, LizaJne bragged on her pink Christmas tree. Jeanne "OkieJ" Cole learned to brag via Jott! Twitter Buddies chimed in, too. CathleenRitt has a new book coming out, Dave LaMorte is graduating on time, and Dayngr found a new way to send messages to support our troops. Also, Jon Swanson reminded us of the importance of community, as we learned that Susan Reynolds has cancer.

What will you brag about this week? It can be serious or fun news about your business, your community, or your self. You can even brag on other folks, if you want.

I use the Brag Basket as a reminder to review my week. How did I do? Did I act on my goals? Did I build relationships? I recommend you review your week, too.

You can leave a comment right now, or dm beckymccray on Twitter.

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Simplified Small Biz Accounting and Record Keeping Series

Every small business person has to face up to it: keeping financial records. Most of us would do anything to avoid having to set up an accounting system!

Here's my simple rule: Don't track anything you don't have to.

• Do track data that helps you make better decisions.
• Do meet all legal requirements.

If you won't use the data to make better business decisions or to meet legal requirements, why are you spending time to track it? You might be surprised the level of detail some small businesses keep, but never refer to!


What records do I need to keep in my small business?
In the USA, get out the tax form you will file, and see what income and expense categories it asks for. Please note, it is worth it to invest in a little time with an income tax accountant to figure out what parts apply to your business and whether you might have any other legal requirements. Make sure you research the regulations from each agency your business must report to, like your state tax commission or department of revenue.

Once you know the categories, keep receipts and totals for those items.

"Meat and Potatoes"
The specifics of implementing these ideas will be part of a series on simplified accounting. First up will be side businesses and micro enterprises.


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Tools: WinWeb accounting and office suite

Friend Shama Hyder passed along a tip on WinWeb.com online office solution.

The accounting modules are free, and the "online infrastructure" services start at $19.95 per month. Trying the free module paired with the 30 day trail should give you a chance to try it out before laying out any cash.

Hyder has written an excellent short review at After The Launch.

"I am thrilled about this service and want to share it with all small business owners," she said in an email.

We'd love to hear your experience with WinWeb, so we can share it with other small town small biz survivors.

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Last chance to enter to win an iPod Nano

Today is your last chance to enter our Nano giveaway. We're teaming with goWholesale to give an Apple iPod Nano to the person who gives the best tip on using the web to source products for your business.

To enter, just go back to our original post, and leave a comment with your tip!

Check out the other sites partnering with goWholesale, too.

• Business Pundit
• Business Opportunities Weblog
• The Small Business Guru Blog
• eBay Edge
• eMoms at Home - Dad Balance
• Just For Small Business

Also check out goWholesale's Sourcing Survey 2007 for a chance to win an Apple Touch!

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IRS Announces 2008 Standard Mileage Rates

The IRS mileage rate is going up 2¢, to 50½¢ for 2008.

Parking fees and tolls are deductible also, but fuel and repair costs are not
as these items are reflected in the standard mileage rate.

Help give away a One Laptop Per Child

The One Laptop Per Child program makes a lot of sense globally.

I have stood in remote rural African villages, and I have talked with Herera and Masubya people about their educational opportunities. I think this project is a very positive step that can fit with their own current work to improve their lives.

To quote Chris Brogan on the tech-y benefits:

• The boxes are inexpensive. Under $200 a box.
• They feature FIVE full programming environments (for geeks, read here).
• They come built with a mesh network right out of the box.
• They have collaboration built into almost every app. So two kids sit down somewhere, open their XOs, and they can write on the same doc.
• They have webcams, so places with literacy issues can suddenly open the conversation to parents, who’ve been excluded from a child’s school experience, until now.

I also like the ability to hook to a solar panel (relatively common in villages I saw) or to use a hand powered recharger.

Phillip Z is combining donations to give away two of them. Perfect for me, who doesn't want to chump off all $400 myself. I donated securely via PayPal.

Yes, you can still chip in. Phillip is eyeing an extra battery and solar panel to give, also.




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It's brag basket Friday

It's brag basket day, I am learning new techno things this week including how to blog via mycell phone. You may never shut me up again. listen

Powered by Jott

Brag Basket is open for you

Each Friday, I open the brag basket as a fun place to brag or promote yourself and your projects.

Last week, Jeanne "OkieJ" Cole bragged on the Waynoka BPW and their working woman honoree, Connie Reece bragged on a collaborative work project, Jon Swanson bragged on getting wide attention thanks to Chris Brogan, and Jon also bragged on Jim Long's trifecta of video. Woot! What a great braggy week!

What will you brag about this week? It can be your business, your community, or your self. You can even brag on other folks, if you want. It's fun, and you get a link back, not to mention applause from us.

I use the Brag Basket as a reminder to review my week. How did I do? Did I act on my goals? Did I build relationships? I recommend you review your week, too.

You can leave a comment right now, or dm beckymccray on Twitter.

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The 3 Point Business Plan

Simplified business plans are a specialty here, and I've found another simple outline to share.

This is a 3 point business plan:

1) a description of the new business
2) the consumer appeal to the new business, and
3) a plan to implement the new business.

If you did no other planning, this would get you off to a great start.

I found it at Make your Dreams Come True with Mirassou.

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Contest provides funding for Women in Business

Women going into business cite access to funding as one of the major obstacles.

Mirassou Winery is offering $50,000 in seed money in a contest open to potential women business owners. Act fast! The deadline is Dec. 15, 2007. (If you miss it, check back to see if they open it again in 2008, as seems likely.)

You'll need a personal essay about yourself as a business person, and a simple business plan. (love that simplified plan! must remember to write a new post about it!)

Read all the details at Make your Dreams Come True with Mirassou.

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Win a Nano for your best product sourcing tip

Small town businesses have to be creative to find products to sell. Some find local merchandise to resell in a larger market. Some use the internet to find more distant sources of products.

Small Biz Survival is teaming with goWholesale to find out more about how you use the internet to source products and services for your business. We're giving away an Apple Nano this week, for the person who gives the best tip on using the web to source products for your business.

Here's how to enter:

• Leave a comment below with your best tip on using the web to source products for your business.
• You may only enter Small Biz Survival's Christmas 2007 giveaway once. You can enter different giveaways, but you can only enter this one once.
  
• Contest is open to anyone in the 50 States, 18 or older.
• Winners will be selected by Small Biz Survival on December 11. The Apple Nano will be shipped shortly after by goWholesale.
• Entries can be submitted until Monday, December 10th, 11:59PM EDT.

Good Luck! And check out goWholesale's Sourcing Survey 2007 for a chance to win an Apple Touch!



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Customer service in a small town

Customer service is just as important to the small town government as to the small town business. John Fiscus, a former mayor of Waynoka, Oklahoma, population 993, wrote this statement:

The City of Waynoka is committed to its mission of meeting the needs of our citizens, both now and in the future. We want to become better at what we are here for, serving and meeting your needs. City Hall doesn't exist in and of itself and to meet its own needs. How to better serve and meet the needs of each and every member of our community is what we want our council and employees to focus on. And to help us keep focused, we've recently develop a long term plan in one, five and ten year increments dealing with all the areas of service that are provided and places that are supported and maintained. This continuing effort will only be a part of all we do to help build a better community.

But providing quality services and good employees at City Hall doesn't make a better community and place to live. It takes more. Community building takes a unified effort from many groups to be successful. Yes, groups of people, not individuals. And yes, unified, working together.

Those words remain on the city website, though attributed to the current mayor.

The attitude of customer service belongs in every small town government, every organization, every small business, and every big business. This statement goes further, making the connection to the larger goal of community building. Have you considered how your organization plays a role in building your community?

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