Running a small business can be overwhelming at times. There are meetings with clients to attend, networking opportunities to take advantage of so that you can grow your business and then you have to actual stop and deliver your service or product or both. There is also the daily operations of the business that must be managed. This can range from maintaining your bookkeeping to managing your social media channels and other tasks that don’t seem to ever get done on your to-do list like calendar management, inbox management and managing incoming calls from clients.
I will start off by saying that I am NOT a tax professional. I am just having a friendly conversation with you business owner to business owner.
We all have one thing in common. We want to make money in our business doing the things that we love to do. Statistics show that not everyone is making money in their business and worse yet many small businesses go out of business within their first year of operations. “According to data from the U.S. Bureau of Labor Statistics, about 20 percent of small businesses fail within their first year. By the end of their fifth year, roughly 50 percent of small businesses fail. After 10 years, the survival rate drops to approximately 35 percent.”
What is happened?
What is one of the common denominators that lead to the death of a business?
The most common issue that leads to small business failure is money woes. “Owners of failing companies are less in tune with how much revenue is generated by sales of products or services. This disconnect leads to funding shortfalls that quickly put a small business out of operation.”
What is one of the simplest solutions?
Keep your books up to date. It can be easier said than done I know that’s what you are thinking. You are also probably thinking that your already so busy running your business that as long as you know what is in your checking account then that’s all you need. This is not the best way to manage your business operations. Yes, you can take a peek at your checking account to see how much money is available to pay bills or withdraw cash but it won’t give you the information below:
How much revenue did you bring in for the services or products you sold within a given time period?
Were there any fraudulent charges by a vendor?
Do you know which customer invoices are outstanding?
Do you know which vendor payables are outstanding?
How much equity do you have currently within your business?
Are you making a profit?
Are you spending too much on unnecessary items?
The list could go on but you are getting the picture about how important it is to keep your books up to date.
Tax Time Preparation
Another great reason to keep your books up to date is to make sure you are taking the right deductions which can lower your taxable income. According to Inc.com and tax and business attorney Barbara Weltman, “"The tax law specifically requires certain records in order to take deductions," Weltman says. "Without these records, legitimate expenditures may not be deductible." Here is a short list of what is needed:
A system for tracking your income and expenses
A system for capturing receipts for purchases
A policy for certain types of record keeping such as mileage and car expenses
In short, by having a good bookkeeping process in place you will be able to pull your financial reports which will give you the overall health of your business. You will be able to see if you are profitable or not. Additionally, you will be able to take advantage of any deductions that are available and lower your taxable income. In short, just looking at your checking account won’t give you all the information you need to run your business effectively.
So are you currently using a system for bookkeeping or are you just winging it? Share your feedback in the comments below.
Keep It Sunny!
Being an entrepreneur is an exhilarating ride.
There are ups & downs.
When things are going great it's like living in the roaring 20's.
BUT when things are not going so great....well...it is like a black cloud follows you around. Is there a way to create some ying & yang within your business?
I believe there is a way. Over the next few weeks, we will take a look at a few different areas within your business and how you can create more peace and balance in those areas.
How do you create that ideal balance within your business and in your life?
Keep It Sunny!
Hello everyone. I hope the month of March was productive and profitable for you. If it was then that is awesome and of course, you should do more of the same for the month of April. If you didn't reach your goals for March then maybe it's time to;
AND ASK YOURSELF THE QUESTION BELOW
Why Did I Decide To Go Into Business For Myself?
The answer to that question is different for everyone. But it is the foundational fuel that will push you to be a better entrepreneur.
It will give you purpose, energy, and motivation to redirect your efforts toward making your business a success.
This month we discussed how to solve some the biggest problems with running your holistic practice successfully. We took a look at how you can have more peace in your business and using online tools in your business to make it run better. Finally, we took a look at a few ideas on how to be more productive and make more money in your business.
The bottom-line is it is YOUR business. Your heart and soul should be in it 100%. If you feel you are off track then take a little time now before the next month starts to reflect and redirect your efforts.
I will leave you with some words of encouragement that I shared at the beginning of the month.
You can do this. Your destiny is to use your gifts to help people to change their lives for the better! Now get moving!
Keep It Sunny!
Are you still running your business like it's 1985?
Writing down ideas on little pieces of paper?
Taking calls on your own personal cell phone?
Missing out on potential clients because no one is there to handle incoming messages?
STOP THE MADNESS!
Check out this article about how to use online tools to help you run your business better. If your looking for ideas on cool receptionist services check out this post I wrote about some of the leading services available.
If you could wave your magic wand and make one area in your business run smoother what area would that be?
Keep It Sunny!
You are ready to change the world one person at a time by helping people with their health and wellness challenges. You completed your training. You have watched countless webinars and attended in person conferences about how to be a successful entrepreneur.
But you are still not bringing in enough client revenue to do more than break even.
And now your own personal health is starting to suffer. What is my next step you might be thinking?
Take a step back and learn from others who have reached great success in their health and wellness businesses. Read this post on what The Top Health & Wellness Entrepreneurs wish they would have known before starting their own business. Sometimes it just takes learning what not to do from others to propel us on our way towards success.
What are some of your biggest problems with running your business? I know that social media and creating consistent content was always a challenge for me but not anymore. What about you?
Stay inspired by checking out this cool motivational quote. You can do this. Your destiny is to use your gifts to help people to change their lives for the better!
Keep the positive vibes flowing and keep it sunny!
We are here my fellow entrepreneurs. And just like you I hate tax time and don't want to pay any unnecessary money to good ole uncle sam. Read this article to learn how to avoid givin your money away. Also, now is a good time to put a process in place to get your business receipts in order. If you want to use your expenses as a write off then you need actual receipts because bank statements will not substitute. I hope you gain some useful tips to help you navigate the sharky waters of tax time.
Keep It Sunny.
January is in the record books and February is here.
How is your business doing?
Do you have your goals written down and created a system to reach them?
Are your financial records in order so you can take care of your tax obligations on time?
If not don't worry. There is still time to take a step back and put a plan in place. This month we will focus on business operations and making sure everything is set up to run smoothly. In the meantime check out this post I wrote about how to create more peace in your business. This will get you in the right frame of mind to be the amazing entrepreneur that you are meant to be.
Keep It Sunny!
The new year is in full swing and with the chance of a fresh beginning means getting rid of some old things like: paying taxes.
I know it isn't what you want to hear but it can be relatively painless if you get your ducks in order.
Check out this previous post I wrote about doing just that.
Also, check out the show notes from a recent podcast on Entrepreneur on Fire. CPA Josh Baurele discussed the implications of the new tax laws and how it could affect small business entrepreneurs.
Start the new year off strong and get your books in shape.
Keep it Sunny!
Your business is thriving and but you're having issues with faulty credit cards and making easy online payment solutions available for your clients. The technology is available and as it is true of most things in our world today: There is an app for that! Check out Stripe as a payment processing solution for your clients.
An article posted by QuickBooks online states that, "Credit cards have evolved into one of the most common methods of consumer payment, with nearly 60% of U.S. consumers using cards over cash, according to a recent report by the Federal Reserve". It is important that as an entrepreneur that you provide a simple, easy and convenient tool for your customers to use. This will help them pay for your services easily and it will help you collect receivables more efficiently.
Stripe is a great payment solution that comes with a hosted page that is included in its price. This means your customers will not be taken away from your website to make a payment. Unlike PayPal which does have a hosted page but you must upgrade to their pro plan for that feature. Stripe isn't an invoicing program so you need to connect it to your bookkeeping software which is relatively easy.
The fees are comparative to PayPal. Both Stripe and PayPal both charge 2.9%+$.30 per transaction fees. The major differentiators that I like are that Stripe has a hosted page for clients to go to for online payments, their fraud resolution tools are user-friendly, they integrate with many third-party apps like QuickBooks Online and they are cost competitive with other comparative options.
Give your customers another option to pay for your services online and check out Stripe to see if it can work for you.
Keep It Sunny!
Are you struggling with the idea of whether or not to hire an employee to help you in your business?
If so check out one of the first posts I wrote on this very topic and see if it helps to clarify your thoughts.
KEEP IT SUNNY!
We all get busy and if you are a team of one then it can get increasingly hectic to make sure your business is going in the direction you want. You might have a few sleepless nights wondering if your bookkeeping is in order or how to get the shoebox of receipts into your QuickBooks account.
What about writing out a future plan to grow your business? That probably fell by the waste side as you got focused on resolving a client issue. You might have thought about creating some sort of standard operating procedures for your business but got busy wearing your marketing hat. I get it.
Check out a previous post I wrote on this topic that pinpoints some areas to zone in on. And share some of your administrative challenges in the comments below so we can collectively learn from each other.
KEEP IT SUNNY!
Running a successful business is hard work.
Running a business that is focused on helping people be the healthiest
that they can be & using the online platform as your storefront can be
Is it doable?
Of course it is.
Are you up for the challenge?
That is a question that only you can answer.
While you are pondering this question check out this article I read on
DamyHealth.com and learn about the pros & cons of running a health &
wellness business online.
KEEP IT SUNNY!
How is your business doing? Do you have everything on your checklist done? What about client acquisition? If you're feeling overwhelmed then check out my previous post on how to get your motivation back and get back on track.
Keep It Sunny!