WELCOME

Our recent networking event was a hit. I was impressed by the variety of businesses that were represented and the noise level in the conference room. Which, of course, meant that everyone was busy selling (and buying).

I noted also that the presenter of our upcoming seminar, The New Marketing 101: Doing More by Spending Less, had opportunities to talk with most everybody present. And that meant that after meeting Brian Leatherberry, president of Leatherberry Consulting, LLC, our seminar registration number started climbing. Communication is a wonderful thing.

If you would like me to email you information about Brian's seminar or if you want to register, call me at (610) 604-4994 or send me an e-mail and I'll take care of it. Take it from all these folks in the picture: Brian's experience, ideas and know-how are apparent, and this seminar will steer you in the right direction to get your business noticed. And that's what we all need to move forward.

Libby Beatty, Chair
MBA Board of Directors

NEWSWORTHY

Pre-Order Your 2010 Tax Calendar

The IRS 2010 Tax Calendar for Small Businesses and Self-Employed (Pub 1518, Catalog Number 12350Z) is now available for pre-order. This 12-month wall calendar is filled with useful information on general business taxes, IRS and SSA customer assistance, electronic filing and paying options, retirement plans, business publications and forms, and common tax filing dates.

Each page highlights different tax issues and tips that may be relevant to small business owners with room on each month to add notes, state tax dates, or business appointments. Order up to five copies for free. The calendars will be shipped on November 1.

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MARKETING

Marketing with What You Have

The following marketing techniques are a mix of old and new that can help make the most of who you already know and who they know:

Network Your Network: Always grow your contact list. Each time you add a new customer or contact, make it your protocol to ask for at least one contact from them. Also, ask trusted business associates to recommend or introduce you to three people that need your service or that could help influence the growth of your business. Sweeten the proposition by promising to do the same.

E-News your Biz: Sending e-news updates with valuable information about your industry, related topics and, of course, your business is a cheap and essential tool to keep your marketing efforts active. Nowadays newsletters are another great platform to connect with other RSS feeds, twitters and blogs.

Handwritten Follow-Ups: This one is classic for a reason. Sending handwritten follow-up cards signals that you are serious about your commitments and it can enhance your appearance as a reliable business contact.

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YOUR FINANCES

Investor Inventory

In order to attract investors and have them take you seriously there are some essential elements that you'll need:

A Plan: Use your full business plan to create a three to five-page abbreviated plan for investors. Highlight your goals and your means for accomplishing them within specific time periods with a focus on illustrating how investors will get their return.

Clear Return and Payoff Dates: Different investors yield different expectations, but it's fair to say that you'll need to show at least an eight percent return to spark interest in an investor. For serious involvement from angel or venture investors you will need to show a 30 to 40 percent return. Payoff dates vary with investors too: three years for angels, four to five years for private equity investors and up to seven years for strategic investors.

Your Worthiness: The value of the proposed investment can also be illustrated by a base valuation of your business and its management team. While some investors will do the valuation themselves, it's always a good idea to have one ready so investors can gauge the value of the investment. And no matter how innovative your business idea is - if there's not a strong, experienced or well-cultivated team to bring the business to fruition, investors will be wary.

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FOR THE HOME-BASED BIZ

Office Supply Saving Secrets

Sometimes the secret to saving on office supplies is not about changing what you buy but how you buy it. Consider these tips on how to find savings:

Team-Up: When you combine purchasing power with other business owners you can place bulk orders and reap the savings. Be sure to make a formal agreement to cover who is the buyer, where the goods will be delivered, how/when payments will be made and how quantities will be distributed.

Show Some Commitment: Some suppliers may offer a discount for a long-term buying commitment. So if you'd like to buy a particular item in bulk, but don't have the space to store it, ask if there's a savings for committing to buy a certain quantity over a certain period of time.

Trade Shows: Exhibitors often offer discounts at trade shows in order to avoid shipping items back home. If you go this route, be sure that you are prepared to haul off the supply or have a well planned shipping method in place.

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HUMAN RESOURCES

Employee vs. Independent Contractor

If you are a small business owner, whether you hire people as independent contractors or as employees will impact the taxes you pay and the taxes you withhold from their paychecks.

Additionally, it will affect how much additional cost your business must bear, what documents and information they must provide to you, and what tax documents you must give to them.

Here are three of the top ten things every business owner should know about hiring people as independent contractors versus hiring them as employees.

1. Three characteristics are used by the IRS to determine the relationship between businesses and workers: Behavioral Control, Financial Control, and the Type of Relationship.
   
   
2. Behavioral Control covers facts that show whether the business has a right to direct or control how the work is done through instructions, training or other means.
   
   
3. Financial Control covers facts that show whether the business has a right to direct or control the financial and business aspects of the worker's job.

Click here to read the complete article…

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IT

Remail: Starting Over, but Not from Scratch

If you want to change your e-mail address but are afraid of losing your regular connections, there is a solution. Remail.com is a new service that can help you change e-mail addresses while keeping you connected to your old contacts.

Remail analyzes the contact information from your previous accounts and presents them to you in an easy-to-read format. This will help you choose who to tell about your address change. Remail will also monitor your old accounts for as long as they are active.

This will let any contacts know that you have relocated by connecting them to a webpage where they can request your new address - the choice is yours.

Remail costs $5 for 60 days of service and $15 for an entire year. Previous account monitoring is free with your subscription.

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NEW MEMBERS

When our member base increases there is more of everything: more creative networking, more benefits and more experienced, enthusiastic business owners. All move our members toward growth, success and the entrepreneurial spirit.

Click here to meet our newest small business partners.

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COMMENTARY

WAM, Bam…Thank You Taxpayers
By Stephen Markowitz

WAM money is back in the news. In case you have been otherwise occupied for the past decade, WAM money stands for "walking around money," and it has official status in the Pennsylvania legislature. At the last accounting in 2008 there was $200,000,000 in the account, which is certainly not denigrated by being referred to as what it is…a slush fund to be used by legislators as they see fit, and they see fit to use it to get re-elected.

The outrage we felt across all political persuasions with the bonuses given to execs at companies in debt to, and bailed out by, the citizens of the United States, should surely be as real regarding WAM money. Our leaders in Harrisburg claim that they must keep WAM money in their pockets in case of a budget stalemate in order to keep the people's business running. They actually said that with a straight face. These are your tax dollars. Since when is your business the granting of illegal bonuses to legislative staff, and boondoggle projects that have no value other than insuring the re-election of incumbents.

With a state budget of sorts in place now, it is time for all citizens of Pennsylvania to stop turning the other cheek. WAM money is being used for purposes that in no way support the public good. And surely at a time when Pennsylvania unemployment is at 8.6 percent (as of this August) there are more citizens in need of that money, more small businesses in need of that money, more schools in need of that money, more citizens who need re-training with that money.

Since November of 2008, the unemployment rate has increased by 29.07 percent in the Commonwealth (6.1 to 8.6 percent). With no sign of unemployment easing off anytime soon, we have more humane and certainly more practical uses for the slush funds lining the pockets of our representatives. Call them today….or blame the guy in the mirror for the continued abuses.

(Next column: The government's rosy proclamations about negatively accelerated unemployment. Is it really a good sign for the economy?)

Stephen Markowitz is chief executive officer of The Administrators, Inc. His column Commentary appeared for 15 years in The Alliance Report, MBA's printed newsletter. His comments reflect his views and not necessarily the opinions of the board and staff of Midlantic Business Alliance. Contact him at SMarkowitz@TheAdministratorsInc.com.

MBA EVENTS OF INTEREST

Seminar: The New Marketing 101
Doing More By Spending Less

Presented by: MBA Member Brian Leatherberry,
Leatherberry Consulting, LLC

This seminar will provide clear action steps for developing an ongoing process for managing a marketing budget, regardless of the dollar amount. By following this process, small businesses will spend every marketing dollar more efficiently.

Thursday, October 22
8:30 to 10:30 AM
MBA Conference Room - Broomall, PA

$10 for MBA members,
$25 for non-members,
$35 for non-members includes seminar & MBA membership
(all non-members must pay in advance)

Click here to register

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Sponsors of MBA's AR Online Newsletter

The Administrators, Inc. Insurance Division
(800)634-4428
Making health insurance affordable

Unless specifically indicated, MBA does not intend mention of companies, products or services discussed in this publication to be construed to be endorsements. The information in this publication is offered as examples that may be useful to our small business readers. Please consult with an industry professional before implementing any of the tips or subscribing to any of the services described above.