100 Ways to Be a Better Entrepreneur (Part 4/6)

100 Ways to Be a Better Entrepreneur (Part 4/6)

Learn how to run and grow your business more effectively and efficiently.

Provided by Entrepreneur.com

42. Before Midnight
Take steps to increase deductions. The larger the number of deductions you claim, the smaller your taxable income will be and the less taxes you'll owe. One of the best ways to boost deductions for cash-basis businesses is to pay as many of your business expenses as possible during this year. With the cash method of accounting, income is taxable when you receive it, and expenses are deductible when they are paid. To beef up those deductions, stock up on business supplies or get equipment or vehicle maintenance done in November or December if you planned to incur these expenses in 2004 anyway. You also will want to consider prepaying some deductible business expenses, including any rent, taxes and insurance due on the first month of the new year.43. Seven Deductions to Consider
Here are seven major opportunities to make your life tax-deductible as an entrepreneur:

·        Your home: As a small-business owner you may qualify to take a home office tax deduction if you use your home office regularly and exclusively for your business.

·        Your car: If you use your car in your business, you can deduct the costs of operating and maintaining your car. However, you can only deduct the portion of your car that pertains to business only.

·        Your equipment: You can convert personal assets into business assets by contributing them to your business. You can do so by giving them to your business either in exchange for a loan document or as contributed capital.

·        Your travel and entertainment: Travel expenses are expenses you incur for your business while away from home. You are traveling away from home if both the following conditions are met: (1) your duties require you to be away from the general area of your "tax home" substantially longer than an ordinary day's work and (2) you need to get sleep or rest to meet the demands of your work while away from home.

·        Your retirement: You may qualify to participate in certain retirement plans that are available to small-business owners, depending on certain factors, such as your business's form of organization, other retirement plans in which you already participate, your earned income and whether you are functioning as an employer (owner) or an employee of your business.

·        Your family: As a small-business owner, you have an opportunity to hire your spouse, children and even your parents as a way of minimizing your family's tax burden.

·        Your self: As a small-business owner, you are able to take advantage of tax-free owner benefits. This allows you and your family to enjoy benefits that are paid by your business and that are also tax-deductible to the business-the best of both worlds.

44. Home Sweet Home
There are three ways a small-business owner can consider qualifying for a home-office deduction: (1)If the business is operating as either a sole proprietorship or as a one-member Limited Liability Company (LLC); (2)if the business is operating either as a partnership or a multimember LLC, electing to be taxed as a partnership; or (3)when the owner of the business is also considered an employee of the business-as in the case of C and S corporations or an LLC, electing to be taxed as a corporation.

The next consideration in qualifying to take a home-office deduction is that you must be using a portion of your home for your business, and be doing so on both a regular and exclusive basis. The final element in qualifying is that this home office is your principal place of business-used regularly and exclusively for business, and that you have no other fixed location where you conduct substantial administrative and management activities of your business.

45. Be Tax Smarter
Though the tax code is complex, it's not impossible for the common entrepreneur to use it and take the best advantage of it. Here are three important considerations for your business expenditures that can help you get the best return possible at tax time:

·        Match allowable ordinary and necessary expenses of your business for each tax year against taxable income. Ordinary and necessary business deductions include all the expenses that are required to operate your business, including: accounting, legal and bank services, office expenses, your car, equipment, travel, entertainment, retirement, wages and salaries, employee benefits, marketing, insurance and payroll taxes.

·        You must allocate expenditures between personal and business use. An expenditure does not have to be either entirely deductible or nondeductible, i.e. business or personal. The personal portion is not tax-deductible: however, the business part is fully tax-deductible as a business expense.

·        Avoid the IRS's "hobby rule." You are presumed by the IRS to be in business with the intent to make a profit. If you do not show a profit in three out of five years, you may be required to demonstrate and defend the fact that you are operating with the genuine intent of making a profit.

Improving Professional Relationships

46. Keep in Touch
In order to maintain good relationships with your banker, and other partners and providers, you must take the initiative. Try these three steps to keep in touch:

·        Make an appointment to deliver and briefly review the current state of your business, as well as a brief history of your company and current business plan. Be responsible for educating them about your industry.

·        Identify shared personal interests or values. Become a good business acquaintance. In conversation, be candid; never make false claims or exaggerate.

·        Never surprise anyone with band news. If things are not going well with your company, give everyone plenty of warning.

47. Supply and Demand
Be open, courteous and firm with your suppliers, and they will respond in kind. Tell them what you need and when you need it. Have a specific understanding about the total cost, and expect delivery on schedule. Keep in constant communication with your suppliers about possible delays, potential substitutions for materials and product lines, production quality, product improvements or new product introductions and potential savings.48. Finding a Good Insurance Agent
Too many entrepreneurs treat finding an insurance agent like going on a blind date. They randomly contact an agency, and then an agent is assigned to them. If coincidence played a role in the way you were matched with your agent, it might be high time to take stock of that relationship and start looking for a new one.

How do you decide whether your agent is meeting your needs? Ask: Does your agent have expertise in your industry? Is he or she up on the latest in commercial insurance? If not, don't be afraid to switch. The best insurance agents ask a lot of questions about the operation of your business-and they ask them often. To see whether your agent knows enough about your business, turn the tables and interview the agent. Ask general questions, such as: Can you recommend any new coverage? Does your company provide evaluation services? Why is this the best carrier? Have you asked me everything necessary to cover my exposures?

49. Bank on It
Bankers aren't in the business of better on your dreams or predictions; they are in the business of loaning secured money-money that is backed by both your personal guarantee and hard assets. Your banker has to answer to his boss and explain why he loaned you money, how you are going to pay it back and why you are a good risk.

The more your banker knows about your business, the more value you are going to get from the relationship. Create regular state-of-the-company status reports to share with your banker. This documentation can help him provide you with better service, aiding him in making quicker decisions about your business. The better tabs your banker has on your business can also help him give you better advice and maybe keep you out of financial trouble.

50. In the Loop
Your banker, attorney and accountant each have the ability to drastically influence the success of your business. The most important thing you need to do is nurture your relationships with them. The more they know about your business, and the better you know them, the more value you'll receive. Develop that close, long-term relationship, and you'll have someone you can depend on in your corner. When you hit the inevitable bumps in the road, they'll be there to help you.

Being a Better Boss

51. Never Stop Learning
In most companies, training and information flow downhill and not uphill. Over the next decade, successful companies will bring the knowledge economy full circle by making sure knowledge flows up, down and sideways. Smart entrepreneurs "hire up," meaning they hire people who bring the latest skills in technology, sales, accounting and other fields.

How can you create a "learning up" strategy? First, managers need to acknowledge that they can learn from rank-and-file employees. Then make continual learning a part of your hiring process. Ask management candidates how comfortable they are learning from employees.

Remember, there's no way you or your managers can be an expert in every area of your business, so don't be afraid to take advantage of knowledge wherever you can find it, even if it comes from lower-level employees.

52. Why Recognition Is a Must
Most entrepreneurs don't consider recognition a central part of their management practice. Below are three reasons why you need to take the time to recognize the good things your employees do:

·        If you recognize and make a bit of a fuss about the good things employees do, then you'll find yourself spending a lot less time worrying about the bad things they do. It's far easier to lead people to improved performance by thanking them when they do it right than giving them grief when they do it wrong.

·        Praise and recognize your star performers. Spotlight role model performances and role model employees. This makes them feel good, encouraging them to stay on board and keep trying hard. And it gives everyone a bit of inspiration and a clearer idea of what you want employees to shoot for.

·        Recognize good effort, not just results. When employees have a tough week, throw a mini party for them. Write personal thank-you notes to employees. Recognizing effort has a bigger impact than giving a prize at the end of the race.

53. Full Speed Ahead
Business owners and managers know they need good bottom-line results but sometimes it's hard to remember what each person in the organization needs to do to accomplish the desired result. Try these three tips to keep your company moving forward:

·        Ask employees what information they need. Use one-on-one opportunities to ask each employee if they have any questions about their work, what to do or how to prioritize.

·        Make sure employees share information with each other. In staff meetings, make a special point of asking each person if they have any information that other staffers may not be aware of. The manager running the meeting can get a lot more information out on the table by simply asking this question.

·        Make a point of sharing feedback about the work and why it matters. This gives employees a clear "line of sight" from their daily tasks to the big-picture reasons for them. It adds meaning and purpose, and keeps the workforce looking forward and moving in the right direction.

54. Trust Me?
Good communication is grounded in trust. No matter what people say, if they're not trusted, they're not believed. Therefore, in order to have good communication in an organization, you must make sure you do what you say you're going to do. People who do are trusted; people who don't are not.

In the name of keeping people informed, many executives tell employees about things they intend to do that don't happen, often eroding employee trust. Consultants often recommend organizations actually communicate less often as a step to improve trust, instructing employers to tell people only those things they have complete control over and know will happen as they say they will.

If managers do what they say they're going to do the majority of the time, employees will give them some leeway if a mistake is made. When trust is high, communication can be more relaxed and casual, but when trust is low, people won't give you the benefit of the doubt, no matter how good your intentions.

55. Show You Care
Here are some tips and tricks you can use with your employees to demonstrate great leadership skills. You'll create trust and loyalty by consistently showing your employees that you care about them and the work they do.

·        Be visible. Walk around the company-avoid hiding out in your office all day. If employees don't see you during the day, they can feel ignored or demoralized.

·        Celebrate victories. Set small and attainable goals every few weeks or months for your employees. It's easy to bring in cake and soft drinks to reward outstanding performances.

·        Encourage friendships among coworkers. Encourage interaction by giving your employees the chance to share their talents with other employees within your office. For example, if someone in your company plays chess and would be willing to teach chess to others who are interested, allow them to promote their skill and give them a place to teach those who'd like to learn.

Put Your Business in the Media Spotlight

56. Throw a Party
Hosting an event for your business or at your business can be a fabulous way to garner publicity. The event can take the form of an open house, a ribbon-cutting ceremony, a seminar or a guest appearance by a celebrity, political official or someone else of significance. Once you decide that you are going to have an event, there are a few things to do to get even more bang for your PR buck.

·        Let your target market know you're having an event. An announcement can be made first with a press release to publications that reach your target market. Hand out fliers at your place of business, with customer orders and at any networking sessions you attend to get the word out about your event.

·        If you are having a speaker or another guest of honor, a separate press release announcing the appearance of that person can be issued.

·        Invite the media with handwritten invitations. Just like a party, invite the people you want to attend. Send invitations to the media, your customers and important prospects, friends and family.

·        Have plenty of press kits available to pass out to those attending. Pass them out not only to the media representatives, but also to your guests. Customers and prospects should receive any and all press releases that you issue.

·        Include in the press kit a frequently asked questions list about the company, person, product or service written in interview form. This makes it easier for radio and TV people to interview you or pick a few questions for press.

57. Write Your Way to Free Publicity
One of the most cost-efficient means to get your message out is to write articles for magazines, trade journals, web sites and newspapers that reach your target clients. Even if you have average writing skills, if you can propose compelling article topics that solve problems for readers, then you'll find editors who will publish your ideas. Here are four factors that make published articles a powerful vehicle to boost your business to the next level. Published articles will:

·        Position you as a leading expert in your field. The value of your knowledge hinges on how well you're recognized by the public as a qualified expert. A published article communicates that you are indeed an expert because your knowledge and ideas merit publication.

·        Convey a sense of third-party endorsement. If a trade magazine is willing to devote valuable space to print your article, then what you say must be important, right? At least that's the assumption readers subconsciously make.

·        Become marketing tools that sell long after the shelf life of the magazine. There are myriad ways to squeeze promotional value out of each article beyond its impact on the newsstands. You can leverage article reprints to enhance your direct-mail campaigns, networking efforts, sales presentations, e-mail marketing, press kits and web site content.

·        Lead to additional PR opportunities. Reporters and editors want to interview industry experts to support their research. When you write and publish articles on a consistent basis, you'll be able to attract more inquiries from the media and get your company written about more often.

·        58. Get Ready for Your Interview
The key to a successful interview is preparation. Since the chief motivation of most interviewers is to get information or create programming that's of special interest to their readers, viewers or listeners, it's your job to provide relevant content while at the same time weaving in your own principal PR themes.

To ensure your company's central message doesn't get lost, create a PR platform you can rely on as the basis for all interviews. This platform will be particularly useful if there is more than one person in your company who may be interviewed by the press, because it will guarantee consistent messaging.

What are the key messages you want to convey about your company, its products or services? Take a look at your advertising, brochures and web content; and identify up to three primary themes or copy points. Then weave them into a one-paragraph platform. Don't forget, your task is to create a PR platform that conveys your central themes in a way that also meets the needs of the audience.

59. Contacting the Press
Always begin by creating a "press list." This is a list of media that reach large numbers of your target audience and are looked to as reputable sources of information. Then select different media from your press list to receive various types of stories.

Before you decide what type of information to send, get copies of each publication to learn what kind of information will be most relevant to that publication's readers. For example, if your firm wins a local award, your release may be of interest to your hometown newspaper. But if you invent a breakthrough medical product, you should target general-business, consumer and medical trade press with your story.

To keep your press release from being lost in the hundreds or thousands of releases editors receive each week, take the time to research the name of a specific editor, news director or journalist to receive it. If you've become familiar with the newspapers, magazines and broadcast news stations you're targeting, it will be easy to identify the individuals who typically handle stories like yours.

60. Why Press Releases Are King
It's a well-known fact that a company's visibility will increase with powerful publicity. After all, publicity aims to bring the news of your company to the world. And the most important tool you can use to accomplish this is the press release.

What exactly should be covered in a press release? Think along the lines of "newsy" and interesting topics. Examples include: your online presence; important information and tools regarding a change in management or the business components you offer; special information that can be obtained online; the announcement of articles, events and appearances; relevant worksheets, tips and techniques; and so on.

When writing a press release, your goals should be uniqueness, timeliness and top-of-the-mind awareness. Once you achieve publicity and visibility, both your company profile and your client and prospect levels will rise. One successful story about your company resulting in free publicity is advertising worth hundreds and thousands of dollars.

Get Your Business Organized

61. Get Others Organized
You may have this organization stuff down pat, but what about your business partners, spouse or business associates? No matter how neat you are, the disorganization of others can impact your business. Try this to bring a little more order into the lives of those around you:

·        Use positive reinforcement. Instead of focusing on other people's disorganization, praise them when they make an attempt to get organized. They knows they're disorganized and don't need to hear your criticism.

·        Teach by example. You can't expect someone to listen to you extol the virtues of organization when you're a mess yourself. If you've changed your style from disorganized to organized, be willing to share the secrets behind your transformation.

·        Be patient and realize everyone is organized to a different degree. Keep in mind that if someone changes one bad organizing habit, his or her productivity will start to increase. Give that person time to make changes and offer encouragement when he or she makes an effort to get organized.

62. Bit by Bit
Organizing projects are best done one piece at a time. Follow these tips to whittle down each step in your process:

·        Determine the main areas you need to organize, and enter them on a list in your daily planner, handheld or contact manager.

·        Break these areas into smaller tasks, and enter those tasks on the list. Make the tasks small enough that they're manageable but not so small that they're insignificant.

·        Put a realistic deadline next to each task.

·        As you accomplish each task and organize various areas, remove the task from your list.

·        Avoid the tendency to bounce around your office from one area to another while organizing. When you focus on one area, you'll be able to accomplish more.

63. Clean Out Your Drawers
If you're buried under a pile of papers and your drawers are filled with more napkins, pen caps and sugar packets than usable office supplies, it may be time to clean out your desk. But where do you begin? Here are five steps to help you de-clutter your desk drawers:

·        Remove. Whatever your situation, the first step is to remove everything-take out all the pens, pencils, clips, sugar packs, tea bags, photos, keys and dried-up candy.

·        Sort. As you remove items, sort according to like items. Sorting shows that you have 87 pens and 830 clips. Ask yourself, "Do I really need so many?"

·        Eliminate. After you've discovered that 54 pens don't even work, or that the sugar packets are rock-hard, then you can eliminate the items directly into the trash or into a box labeled "to go elsewhere."

·        Contain. Stop and think-if you put all that stuff back into the drawer, it will soon be a jumbled mess again. Instead, keep those groups sorted and separated at all times by first containing them. If you put each group in a drawer divider or shallow box before placing them back in the drawer, they'll stay in one place.

·        Assign. Don't just stick the containers in the drawer. Assign them a place. Unassigned items simply float from place to place.

64. Write It Down
Experts recommend entrepreneurs employ not one but two to-do lists. The master list contains a maximum of three items of long-term importance, like "grow sales" or "get new customers." The second list contains day-to-day to-dos that represent tactical steps to completing those strategic to-dos.

Once you have your lists written, categorize all items, tagging them as projects, phone calls, errands, agenda items, work to be done at your computer or desk, things you can do anywhere, and items that aren't urgent.

Review your list items frequently to see if items are listed correctly and should be there to begin with. Working over your list in advance daily and weekly means that, when you consult your list, you don't have to rethink your commitment and your plan right then.

Don't forget to cross things off once you've completed them. Checking off your to-do list not only keeps you organized, but also shows exactly how much you've accomplished.

65. Get in Control!
To work productively and efficiently, you need to create a work environment that supports you. Regain control of your work life by following these steps:

·        1. Create your vision of a clean work environment. Using your existing office space, sketch the ideal configuration of your office on paper. Remember to create a space for your old project files, financial statements and client information.

·        2. Take one day, right now, and organize. You will never have the time to organize unless you schedule it on your calendar. Using your sketch as a guide, go after your mess.

·        3. Unsubscribe from information overload. Throw away the magazines and catalogs you will never read-they just sit there and taunt you. Cancel unwanted subscriptions, and get off any mailing lists that do not help you achieve success.

·        4. Create a new project file folder. A new project usually generates a temporary mess. To avoid spillover, put all new project information, drafts and associated paperwork into an expandable file folder.

·        5.Schedule one cleanup day after every vacation. Add one day to your vacation to organize your thoughts, projects and priorities. A cleanup day lets you organize paperwork from previous projects, pay outstanding bills and answer client mail.

Take Your Sales Skills to the Next Level!

66. Dust Yourself Off
There isn't a salesperson alive who hasn't experienced a slump. If you find yourself coasting downhill, here are four steps to follow to pick yourself back up:

·        Call on your satisfied customers. Look for additional ways to satisfy their needs or new needs you can meet. Learn about their new problems and challenges, and come back to them with fresh solutions.

·        Concentrate on bread-and-butter accounts. Different accounts have different sales cycles, with some taking up to a few years. Sometimes, you get so caught up with landing big one that you forget about little accounts with shorter sales cycles that can bring in money now.

·        Stay on top of business and world news, and how these events might affect customers. Look for sources that will give you new ideas on how to fine-tune your activities and target your customers more efficiently. Read materials that will help you speak to your customers in their language. Learn more about how other people grew their businesses.

·        Be selective about the company you keep. If everyone around you is in a slump as well, you'll drag each other down. Surround yourself with people who are excited about what they do and ride on their momentum until you can build your own.