WELCOME

Failure, Perseverance and Passion
Stay the Course

All of us who are entrepreneurs know that underneath that tough skin lurks a volcano of self-doubt. Some will go to bed at night reliving the attempts to close sales, suffering over a lack of capital and whining over an economy that makes floaters out of deep sea fish. Okay, so we're down sometimes. We get hung up on the world not being fair.

So who said it's supposed to be fair?

Here are a few character traits that may lure you into a self-evaluation 1) what kind of entrepreneur are you, and 2) what are your chances for success based on these traits. This is a just-for-fun kind of excersise, but maybe it will seem so compelling, you just have to wonder who is it that you're seeing in the mirror tomorrow morning. Ready?

Do you see…FAILURE? Can you consider failure as a right of passage to your success? The strong survive. Even the failures. How about PERSEVERANCE? How many jobs go through your shop showing NP (no profit)? Can you stand one more? Can you hear "Only the strong survive" one more time? ARGH. The one with the most perseverance vs. "I can't stand it anymore" means that the first one got up off the ground one more time than the other. Time for some PASSION. I have a friend in her thirties that adores her job, yet she says "I'm making money and just hired my first employee, but GEEZ, I'm just a dog walker." Can't she see what a sure fire path to success she has developed? She has passion for her job. She's making money and she's a real entrepreneur. In every sense of the word.

Being an entrepreneur is just way too hard without the passion. I really must speak to her. Follow your passion, MBA members, and be sure to encourage the dog walkers of the world.

Libby Beatty, Chair
MBA Board of Directors

NEWSWORTHY

Small Victory for Small Biz and Card Fees

The US Senate will soon vote on a financial reform bill that was approved by the House earlier this month. One of the notable reforms for small businesses involves swipe fees on merchants who accept credit and debit card payments from their customers. In the bill, the Federal Reserve makes sure swipe fees are fair for smaller businesses. While fees charged by Visa, MasterCard and others will not be regulated by the government, issuers will be required to offer merchants more processing options. The hope is that competition will lower processing fees. The bill will also permit card networks to limit the minimum transaction to $10, but the Federal Reserve can raise that limit over time.

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MARKETING

Creating a Marketing Partnership

Marketing partnerships usually include two or more companies that have common prospects, similar marketing needs and complementary services. Smart partnerships commonly engage in joint marketing materials, advertising campaigns, sales calls and referring prospects.

Here are a few things to be mindful of when considering a partnership:

• Reputation and Position: Your partner's reputation will quickly become associated with your own. Depending on the reputation of your partner this will either expand the reach of your marketing or hinder it. Choose your partner wisely.
  
  
• Relationship of Value: Be prepared to show the partner you approach results. Ideas alone do not make successful partnerships. Don't tell - but show how they stand to reap real profits from a relationship with your organization.
  
  
• Commitment to Success: By assuming responsibility for success you can take the reigns in the partnership allowing you the opportunity to show your partner that you are committed and can produce results. Immediate action is the best way to show a partner you are serious from the gate.

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YOUR FINANCES

Fix Your Credit

No person or organization is impervious to mistakes, including credit bureaus. According to statistics, errors are made on up to 80 percent of credit reports. That's a significant number.

Here's how to help fix the inaccuracies:

Launch a Claim: If you see a miscalculation on your credit report, there's help available. The FCRA (Fair Credit Reporting Act) requires credit bureaus to investigate your claim within 30 days of your report. If an error is found, it will be corrected and other credit bureaus will be notified. A free and updated credit report will be sent to you.

Create a Log: Keep records of phone conversations, e-mails, and any correspondence. Send all letters certified mail and include copies of any documents you are using to support your claim. When you send documentation to the credit reporting agency, be sure to circle the items in question.

Let Them Know: Next, notify the creditor or business (whose claim you are disputing) that the issue is being investigated. Include copies of your correspondence with the credit reporting agnecies to further develop a sound document trail. In your letter, clearly state the inaccuracy and how you want it corrected.

Litigate: If your claim is denied, you have the option to take legal action. A less extreme alternative is to attach a letter of explanation to your credit file. The business is obligated to include your letter in any future credit bureau inquiries. (Then make sure they actually do it.)

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FOR THE HOME-BASED BIZ

Tax Strategies for Home Businesses

There are tax strategies that can give the average home business an edge when it comes time to pay taxes.

Here are some ways you can get the most from your deductions:

Company Car: If you regularly use your car to conduct business, you should track mileage and keep gas receipts. Owners who use their vehicle less often should still take advantage of deductions, as many small bills add up to big returns.

Spouse/Shareholder: If your business qualifies as a "Sub S Corporation", you have the ability to make your spouse a legal shareholder. Thisallows for distributions that are not taxable. This will also make your spouse part owner of your business, so be sure you're really ready to share more than the profits.

LLC Status: Consider getting an LLC status. This means that as a single owner, your tax status is disregarded from income tax payment. This will also allow you to take money out of your business at will and avoid filing as a corporation. Be sure that you still document income and expenses for proof.

Power Line Networking for Home Offices

If you have more than one computer for your home business or you share a network connection with other devices in your home, there's a way to simplify your wireless home networking needs. Power line networkingmeans that your networked devices are connected through the electrical circuitry of your home via a small box that looks like an appliance timer.

This method allows you to ditch the tangled mass of Ethernet cables once used to create internal networks while increasing the signal strength for any plugged-in device. Power line networking devices are made by D-Link, Netgear and Linksys. And there are a variety of other options available on Amazon.

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HUMAN RESOURCES

Serving your Community

When you go out of your way to do a good service, it often finds its way back to you.

Here are suggestions for getting the ball rolling:

• Public Servants: Get in touch with the offices of the local government including the police and fire departments. Ask when they hold events, meetings and fundraisers and offer to donate prizes or items for gift bags.
  
  
• Webinar: Host a free webinar from your website or a hosting site that allows you to educate your clients or niche customers on a topic that has wide appeal. Create a special offer to help draw participants (like a discount code, etc.). Be sure that you allow some time for Q&A.
  
  
• Free Community Tools: Offer to donate toolsto your local parks department to help keep your community clean. Of course, tools like dog baggie dispensers and recycling/compost/garbage bins could include your business's name and logo.

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IT

Automated Small Biz Software

Infusionsoft is making automated CRM, e-commerce and e-marketing accessible and affordable for small businesses while promising to double your profits with no additional effort on your part.

Give the free trial a whirl to explore the following features:

1. Lead Capturing: This will capture information from website leads and automatically include them into your segmented marketing plan.
   
   
2. Manage Contacts: This feature organizes contact histories, conversation records and buying behaviors creating an accurate targeting system.
   
   
3. Targeted E-mails: Marketing messages are sent to the people you know want them without the risk of frustrating those who don't.
   
   
4. Online Sales: Create a shopping cart and product displays. Also process orders on and off line. This also includes automatic billing and collection processes.

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COMMENTARY

Health Care Reform…Smoke and Mirrors?
By Stephen Markowitz

Health care reform is here and coming…it is just that schizophrenic. All informed owners and company managers need to become knowledgeable about the basics of reform. It is not merely a matter of letting your accountant or lawyer direct you; although that has value also.

Small business owners with more than 50 employees must offer health insurance or pay a $2,000 fine per employee, less 30 employees. The Mensa members of the bureaucracy who mandated this should realize that most employers can do math and may see the value of a fine instead of a premium. This regulation may actually increase the number of uninsured Americans. Since the new laws will require everyone to have health insurance, this will increase the cost-of-living burden for many employees.

Companies with fewer than 50 employees may have an incentive. Starting this year, companies with 25 or fewer employees are entitled to a tax credit of up to 35 percent. This applies only if the average earnings of employees is less than $50,000, and you pay at least 50 percent of the premium for each employee. Why do I say may have? Not paying any premiums does not entail a fine for this group. Now a tax credit for a small business (let's say seven employees) will save approximately $19,000 - $20,000. Not offering insurance will save them approximately $33,000 - $34,000. Many employers, increasingly pinched by the lack of hope and change reflected in their P&L statements, will reluctantly look to the health insurance cost as a way of mitigating their losses.

For more discussion on this topic, plan to attend MBA's breakfast networking meeting on Wednesday, July 21 from 8AM - 10AM. Click here for the details.

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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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MBA EVENTS OF INTEREST

It's Breakfast, It's Health Reform, It's Urgent
A Business Networking Breakfast

Do business while you learn about health reform tax benefitsand your responsibilities.

1. We’ll tell you how health care reform directly affects you and your bottom line.
2. Network with other businesses and impact your bottom line.
3. Breakfast is on us if you are already a member. That certainly helps with the bottom line.

Wednesday, July 21
8:00 to 10:00 AM

Generations Restuarant (Need directions?)
9 State Road (not State Street)
Media, PA

* FREE to MBA members
$10 for non-members to attend

For more information, visit our website.

To register, call 800-533-3732 / 610-604-4994 ext. 131or click here.

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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.