WELCOME

Tips for a Year-End Clean Up

So how was Christmas? Hope I'm not hurting anyone's feelings by mentioning this holiday. But it is the holiday du jour, so I won't worry. Ok, so now it's time to buck up.

Yes, it's time to clean up and prepare for the new year. Here are a few suggestions to get you started:.

1. I hate to say this, but is there anyone still using paper bookkeeping systems? Every "How to Start" seminar presenter has asked this question. The answer is always the same - small businesses need computers! Actually, it's dwindling off now because it's too absurd. But, if you are still toiling over those paper systems, you know what you need to do, right?
2. Here's something that will make you all smile. Get rid of that stack of stuff on your desk. You know what I mean. Magazines, things you've cut out that you've meant to read, a directory you've wanted to turn into a prospect database, Etc.
3. Something small, but still helpful. Toss the 15-year old business cards you picked up at networking events. The ones with the rubber bank around them. Look through them quickly for any ten dollar bills, then toss.
4. Do you still have a box from the printer of very-old marketing materials you had to have for that table at that conference? Yes, it's time. Get some new ones.

We all have a clean slate now that the calendar is changing. Best wishes for a happy and prosperous new year.

Libby Beatty, Chair
MBA Board of Directors

NEWSWORTHY

Regulations Eliminate Paper Deposits

On December 7, 2010, the IRS issued temporary and final regulations requiring all federal tax deposits to be made using the Electronic Federal Tax Deposit System (EFTPS) beginning January 1, 2011.

The regulations note that the Treasury Department will no longer maintain the paper deposit coupon system after 2010. The regulations do not change the deposit requirements or thresholds. Taxpayers who owe minimal amounts and are not subject to the tax rules will continue to be permitted to make payment with the filed tax return. For example, Form 941 filers with a deposit liability of less than $2,500 for a return may continue to submit payment with the return.

Source: IRS.gov

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MARKETING

New Year, New Marketing

While resolutions abound, now is the time to revamp your marketing campaign to strike while people are susceptible to change and new routines.

Here are some tips for altering your current methods to increase effectiveness and save money at the same time:

Perceived Value: Try promoting products from lower price brackets in order to give the appearance of "New Year" sales without actually discounting anything. This creates a sense of urgency and value. Also, try combining products into packages that offer more service with only a slight mark-up.

Economize: Running smaller ads with fewer words and less detail will also help you save and hone your message. This way your pricing becomes the attention grabber instead of the design.

Prioritize: If you've kept tabs on the effectiveness of your current methods, use that data to exploit a more specific niche, allowing you to refocus your aim on your next round of advertising.

Marketing Mantra: Donate, Educate, Communicate

The following cost-effective marketing methods are focused on infiltrating communities.

• Non-Profit Donations: Seek out area non-profits that host auctions or other fund-raising type events. Donate your tax deductible products or services to them to be auctioned as a raffle or a door prize. You could also offer to donate gift bags packed with your marketing materials: pins, stickers or magnets.
• Host a Seminar: Team up with area businesses that target the same clients as you to host a seminar. You can invite other area businesses owners, clients and prospects. Split the cost of the event with the partnering business and reap the benefits of future referrals from their invite list.
• Linked-In: Linked-In is a free professional business networking site that can help you gain valuable contacts while you market your business through various networks. Seek out groups that are related to your business by industry or by target customers and join them. Then you can include theses groups on your blog, site and newsletters.

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YOUR FINANCES

Commonly Overlooked Tax Deductions

With all the challenges entrepreneurs have to stay in business, it's no wonder that they forget or don't have the time to take advantage of all the available tax deductions.

Here are some to look into:

1. Legal & Professional Fees: These fees are tax deductible from your taxable income. Professionals include accountants, consultants, etc.
2. Software: IRS allows a deduction of 100 percent of software costs for products purchased from January 1, 2003 to December 31, 2010.
3. Start-Up Costs: Cost of start-ups such as advertising, utilities and rent can be deducted for up to $5,000 in the year they were spent.
4. Conferences and Seminars: Classes and courses that were attended to increase your ability to do your business can be deducted. Course materials like textbooks, software and tuition are also deductible.

Cost Cutters

Here are some money-saving ideas for cutting your operational costs:

Online Payment: Do some price comparisons to see if giving up your merchant account and replacing it with an online payment service is more cost efficient. PayPal, Accept Pay and Pay Simple are good places to compare. Many of these services can be used from cellular devices allowing you to offer the convenience of paying customers while streamlining your sales process.

Compare Couriers: Rush and overnight delivery options allow you to stay competitive, but rates of major courier services are also very competitive. You can find cheaper rates with smaller competing carriers, but the delivery will take a bit longer.

Ad Space Everywhere: You should be making space on your receipts, packaging and letters to place promotions, add coupons or announce an event.

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FOR THE HOME-BASED BIZ

Wholesalers for Your Home Biz

Because a reliable wholesaler is a very valuable commodity, small and home businesses have the odds stocked against them by competition from larger organizations. Your best bet is to make it a numbers game, finding the greatest amount of potential partners and approaching them one by one.

Here are some resources to help get your search underway:

• Directories & eBay: There are online directories all over the web, so use precise search terminology to narrow the search. Avoid people that try to sell "verified and updated lists" of wholesalers - these are usually scams. eBay is another good place to look as wholesalers often auction surplus products there.
• Tradeshows & Magazines: These events are full of wholesalers that want to create relationships. Keep your eyes peeled to see who can offer you the best deal. Placing an initial order at a show often affords you a discount and can be a good way to forge a new business relationship. Here are two sites to research trade shows: TSNN and BizTradeShows. Some trade publications like Web Wholesaler Magazine are free and are packed with wholesalers, drop shippers and manufacturers.

Tips to Boost Home Biz Productivity

Home business owners often feel capable of doing everything, but find that there just isn't enough time.

Here's how you can get more accomplished with the time you actually have:

Outsource: Whether picking-up new customers or picking-up your kids, get help. Creating a car pool with local parents could save you an hour or more a week. Virtual assistants can do just about anything and they're cheaper and have more flexible contracts than personal assistants.

Schedule Distractions: If you have non-essential business or personal tasks that you need to do during your "work hours," create a block for that activity in your schedule at the start of your work day.

Work a Network: Use your valuable time to strike up conversations with strangers or casual acquaintances. You will quickly discover something or someone you have in common, and as the adage goes, "It's not what you know - but who you know."

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HUMAN RESOURCES

Interns Without Interruptions

Interns may look more and more appealing as the economy continues to sputter along, but to make sure you don't get more than you bargained for, follow these rules:

• Role & Requirement: Write a clear description of the intern's roles including the required tasks and projects to be completed. Outline a schedule, a proposed compensatory rate and a list of requirements to be eligible for the position. Flexibility is useful for both you and your intern.
• Intern Team: If you can utilize and afford two interns, it's nice to have them pair up and work as a team. This way you can mix and match skills and experience so everyone gets what they are looking for. An ideal match could be someone who is technically savvy while the other excels in PR.
• Managing: Since your interns' work represents your business, keep a watchful eye on them. Schedule regular meetings for progress reports, questions and guidance. Having them call or send an e-mail on a set schedule is a good way to determine their organizational worth.

Tips for Better than Good Customer Service

Friendliness and willingness creates the foundation for good customer service - but great customer service takes a few extra steps.

Here are some tips to help your employees take your service from good to great:

New Customers: In addition to being friendly and helpful, urge employees to take an extra step by asking the customer a question beyond the confines of "How are you today?" The question could reveal information helpful to serving the customer.

Listening Skills: It is one thing to hear a customer, but listening takes more effort. When a customer has a problem/question, have your employee recite their issue back to them to ensure that your employee understands the issue clearly and the customer feels heard.

Resolving Problems: Have employees ask how the customer would like the problem resolved even if there's a protocol in place - it's important to let the customer feel that they are negotiating for what they want. Unreasonable requests are best settled by negotiation and a mutual solution.

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IT

Sound More Professional with Grasshopper

Grasshopper is helping small businesses handle communications like big businesses - and without the big prices. Grasshopper offers virtual phone service that has all the features that an entrepreneur needs to operate on a professional level. Simply pick a toll-free or local number and record a custom greeting for your business.

Grasshopper allows you to create links to employees and departments so callers can see the professional quality of your business. You can set up features to instantly transfer calls to alternate numbers and receive voice mails and faxes anywhere. There are many other features including conference calling, voice to text and on-hold music that vary the price of your monthly service.

There are other pricing structures to choose from starting at $9.99 a month.

CityGrid

The flourishing of local search engines continues to grow as mobile devices become more prevalent. CityGrid is the latest creation in CitySearch's effort to expand their reach and change the way local advertisers do business. CityGrid's plan is to take all of CitySearch's local listings' content and advertising and make it available to other websites and mobile apps.

This means that small businesses that publish a page on CitySearch will have their reviews, videos, photos, hours, numbers and messages available through other search engines. Since CitySearch is a pay-per-action model, local businesses are paying for their leads when their content is clicked.

CityGrid will greatly expand the reach of these businesses but CitySearch splits the ad revenue with the publisher. If you're not on CitySearch, now's the time to check it out.

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COMMENTARY

Some New Year's Resolutions

By Stephen Markowitz

1. Renew efforts to develop a niche. Determine what makes your product or service different from the competition. Find the reason your customer should come to you and not the box store down the road. Figure out what is rubbing consumers raw and determine how you can be the salve. As hard as it may be to do, find a way to give them a break and remind them you are doing because you are their neighbor as well as a local business.
   
   
2. Put an end to business-owner guilt. You are small business and you employ America. The next time someone (usually a pandering politician) talks about the high income small business owner, flood that Oval Office with indignant letters about scapegoating. Make those who have never worked an honest day in their lives stop telling you how to work an honest day.
   
   
3. Join a group (of course I have one in mind) and use the same intellect and drive that built your business, to deliver the message to your neighbors and your local politicians that you will not begin hiring until Washington figures out what it intends to do in real terms to achieve all its non-funded programs aimed at distributing your wealth to those who never bothered.
   
   
4. Add a line to your product offerings or a service to your menu. Do it now.
   
   
5. Use your website for the only real purpose that suits a small business. Use it to talk to your current customers. Tell them often what you have to sell and why you will deliver it better than big business. Tell them what's on sale as often as necessary. Every one of you has an ability to do this with a bit of thought. Offer those customers a discount on their next purchase if they give you their current email address and permission to send them information about your product offerings.
   
   
6. Join MBA (800-533-3732)…the wisest $45 you will ever invest for a full year's participation. Not to mention a mailing list that would cost you many times that amount.
   
   
7. Learn everything you can about health reform. You will then know more than your elected officials who frankly admit that they are confused as never before. Work with MBA for intelligent reform of health care and health insurance.

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.

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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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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.