Just in Time… Financial Tips for Tax Season
I recently spoke to Kimberly Palmer. She’s the senior editor and personal finance columnist for US News & World Report. And in addition to appearing on NBC’s Today show, CNBC, CNN, and local television and radio shows nationwide, she has also written for the Washington Post, The Wall Street Journal, and the Asahi Shimbun/International Herald Tribune in Tokyo as a Henry Luce scholar.
Well, with tax season upon us, I thought I’d venture a little out of the PR and marketing area. Instead, I asked Kimberly to provide some financial tips for small business owners and insights from her new book, “Generation Earn.”. Here’s what she had to say:
Why did you write your book?
I was frustrated with the lack of personal finance books written for people like me; people who are not downing in debt, but who still want solid financial advice to help take them to the next level. So many books for 20- and 30-somethings focus almost exclusively on debt issues, but I don’t think most of us are defined by our debts, as large as they might be. So I wrote Generation Earn to go beyond all the debt-talk and explore how to get ahead in today’s economy.
Why should entrepreneurs read your book?
Because almost everyone needs to act like an entrepreneur at least to some degree in the new economy, I profiled many entrepreneurs and devoted an entire chapter to the importance of being entrepreneurial.
Some people want to run their own business full-time, but others just want to start up a venture on the side, or have a second (or third) source of income to supplement a main gig.
When you’re an entrepreneur, it becomes even more important to manage your money well, because you need extra savings to cushion ebbs and flows in income, as well as plan for your own retirement, take out insurance, and anticipate taxes. I write about those unique challenges and how to successfully navigate them.
What one, main piece of advice do you have for entrepreneurs who want to leave their full-time jobs and start a business now?
The most successful entrepreneurs that I profiled in Generation Earn actually held onto their full-time jobs while they built their small businesses.
One woman worked as a paralegal while she slowly built up her yoga studio. When she finally quit, she already had a steady revenue stream from her studio and yoga clothing design business.
Another couple who started up a pet décor Web business still work their full-time jobs (as a lawyer and fundraiser) even though their Website is pulling in a steady revenue stream. Even though it means they’re getting little sleep for now, they know it’s essential for their financial security…. so my advice is to build up your business before quitting your full-time gig.
What specific tips do you have for new business owners to help them save money and control business costs?
The first step is to figure out how you can save a significant chunk of whatever income you are bringing in – I recommend saving one-quarter of your pre-tax income, which includes retirement savings.
The key to doing that, if it sounds impossible, is to start slowly and to automate. Set up your bank account so you are automatically saving two percent of your income each month. Then, slowly raise that to three, four and five percent (and higher).
As for controlling business costs, it’s important not to be overly frugal – investing in your business is key to growing it, so you might need to spend on advertising, Web design, or whatever makes sense for your company. Look for savings elsewhere: lifestyle costs, transportation, food, or housing, for example.
What advice can you give entrepreneurs to help them save on taxes?
Be super-organized! The classic mistake that so many people make is to wait until taxes are almost due before figuring out what they can deduct and where those old receipts are.
Setting up a simple filing system, or using a website that does it for you (such as myquickreceipts.com) can save you a lot of time and headache. If you know you are just not up for the challenge, then outsource the job to an accountant.
It can save you a lot of trouble and money in the long-run.
Thanks Kimberly! Those are great tips. If you’d like to learn more, or get a copy of Kimberly’s book, Generation Earn, visit www.generationearn.com.
And if you need help in saving money on your PR and marketing activities, please let me know here or at www.rembrandtwrites.com.
March 2nd, 2011 at 2:10 pm
The truth about marketing your business locally!
Since the housing bust and because most people were living beyond their means by maxing out their credit cards and on top of that they are worried whether they’ll still have a job next week, if you haven’t lost it yet, people only seem to be spending money when they have to. Because of the uncertainty, most people are afraid to spend any money they have right now and small local businesses have been affected the most by this.
Sure, if you’re a large company, you will be able to make it through times like this. But the heart of business, the small local businesses are finding it harder to keep the doors open. They just don’t have the resources to keep going without new business or losing some of the existing business they have.
So they must find a way to get the phone ringing. They advertise now but they are already spending as much as they can and it seems in the last few years the old local marketing methods are not working as well as they once did but the cost have gone up.
Their ad in the phone book that use to be a ¼ page is now a small listing mainly because it was costing thousands of dollars a year and it hasn’t been cost effective. So they downsized their ad to save some of the marketing costs but this actually has an adverse effect and is making it even harder to get new business. Why? Because people using the phone book to find local businesses has dramatically decreased and this has effected both advertisers and potential customers.
First, for the advertisers, the cost has steadily increased so it’s become too expensive to pay for those big ads anymore. Smaller ads mean less visibility, less visibility means fewer people seeing your business, fewer people seeing your business means fewer potential new customers. Second, the internet has taken over local marketing. Every month thousands and thousands of people are getting online.
In seconds anyone can search for whatever they are looking for even local businesses. And not just from a home computer. Many people have laptops that can be used at more and more places every month. Now you can stop at a café, be at a hotel or even at a fast food joint and have wireless access to the internet. Not to mention internet on your phone or other devices like I Pads.
And with local internet marketing services like Google “places” , “Google “maps” and Yahoo “local” , your business can be found 24/7, 7 days a week. There’s no more drudging through the phone book to find local businesses the might not even be in business any more.
Why, because you pay for a whole year for an ad in the phone book and your information can not be changed. Let’s say you had to downsize and relocate your business to another address. Now no one will be able to find you because only your old info will be in the phone book. All you can do is spend more money you don’t have to place another ad. If you advertise on the internet any changes can be made and be seen in a few minutes so your information will always be up to date.
The phone books themselves know this that’s why they’ve decided to take their business online. As time goes on print copies of the phone book will be used less and less. This also applies the other forms of local marketing you might use. Newspapers? They have become even less effective than the phone book. Sales have been so bad they are almost giving the newspaper away. Every week I get a call from a local newspaper about their new lower price special 4 day, a week offer. Even the large ones are on the verge of going out of business. If they can afford it, they are going online because no one is buying the printed copy anymore. Now they’ll have their own “ap” so everyone can read their favorite newspaper online
Local monthly papers and coupon books? Local monthly papers are extremely expensive and also on the decline. Coupon books are cheaper but your ad is stuffed in with maybe hundreds of other ads, randomly. (Not to effective) But the worst part is that they only distribute it once a month! That’s only 12 times a year; your ad will be in front of someone. Definitely, not the most effective local marketing you could pay for. Just ask yourself a question? Whens the last time you looked through a monthly paper or coupon book for a local business?
So the real local marketing answer for any business, no matter big or small is to have a presence in the local listing of the major search engines. Google and Yahoo are the most used search engines and Bing, is getting pretty popular too. Having your business listed on the first page of their local listings is without a doubt the most effective local marketing any business can do. The problem is, in order to take advantage of local internet marketing you must be listed on the first page.
Being listed on page 2 or higher could be the difference between getting the presence you need or just being another ad online. If you’re like me, when I search the internet, if I don’t find it on the first page, I usually change my search and search again. I rarely go to page 2 or higher. Just ask any business who has a first page listing now how dramatic the increase in the number of visitors they get to their web site is compared to being listed on page 2 or higher.
I know many businesses that went from averaging 25 to 100 clicks a month in local searches, to thousands of clicks a month just because they moved from another page to page 1! OK, The big question? How Do I get my business there? Well, there are many local SEO companies out there and most of the promise you first page listings in the major search engine. They usually try to include it in a big package of blogging, backlinks, and SEO for your web site in order to get your site to the first page in the top 10 listings. This can cost anywhere from $300 a month and up.
This is all good but this can be pretty costly and not necessary. Why? Well because for a “worldwide business” (one that sells a product or service worldwide or across the country) getting a first page, top 10 (generic) listing is needed to get business. Just like local internet marketing, most people chose a business or company from the first page. The difference is, if you do not ship a product, or provide a service “worldwide” you’re wasting your time and money for advertising. If you’re a local business, you only really need “local” marketing. What good does it do your business being listed on the first page of Google, if you’re a local “dry cleaner”, or “auto repair “business? Are you going to clean someone’s clothes, who lives 3 states away from your business? NO, probably not.
Your biggest concern should be “local internet marketing”, so don’t worry about having your web site on the first page, just your listing. So if you decide to use a company to do your local marketing, ask them to provide just that. A good local internet marketing service should only run you a third or less of what they want for a “worldwide package” . You should be able to get top results in the local results for $100 or less a month. Much better right?
But how do I choose a company to do my local internet marketing? Well, if you can find a marketing company that provides the things in the list below, then you will have your best chance at getting a top first page listing that can produce customers and not getting ripped off!
1. You should never spend more than $100 a month for local marketing. If they tell you that you need the $300 package to have first place local listings, their lying.
2. Make them give you examples of several clients who have first page local listing rioght now. Not old outdated or “once they were” there listings. The easiest way is to take their exmplaes and go to Goggle and search it. If you don’t see what they promise, don’t waste you’r time and money.
3. They should offer you a month by month contract. If they can really produce what they say they can then they should not want to “lock” you in to a year or longer contract. If they don’t offer a month by month contract, go somewhere else. Why should you have to pay for something that doesn’t work or you’re not happy with?
4. Make your input count! Don’t be told that “this is the best way to market your business” or what “search terms” are best for your business. They should be able to show what’s being searched on the internet for your business so you can decide which “search terms” you want to target. For example, if you’re a plumber in Palm Beach, then you should be listed for a “plumber in palm beach” not “plumbing repairs palm beach”. The search terms make all the difference! When I searched to see what was searched last month in Google “plumber in palm beach” had 1,900 local searches and “plumbing repairs palm beach” had 0! Which one would you target? If they can’t show you results about what terms to choose, and then go somewhere else!
If you follow these tips, you will be able to find local SEO companies that can help your business get the local web presence your business really needs!
June 1st, 2012 at 5:09 am
Although creation resolution to improve your financial situation is a good thing to do at any time of year, many people find it easier at the commencement of a new year
July 3rd, 2012 at 8:12 am
Need help on bankruptcy or reverse mortgage? Then Depthelper can help you! We are a counseling company who help individuals that leads them in the right direction. Just visit our website http://www.debthelper.com/ and if you have any questions call us toll free at 1(800)-920-2262. We are a nonprofit organization who can assist you out of dept. We look forward in hearing from you.
August 10th, 2012 at 5:20 pm
Ladar Cleaning Service start up
http://www.indiegogo.com/ladarofmistartup
Ladar Cleaning Service is a woman owned and operated Commercial cleaning services. The purpose of this is to help bring in some capital to buy cleaning equipment