By Mark LaBlanc
How you position yourself in the mind of your prospects and clients is critical to attracting more prospects and reaching the level of success you desire. You position yourself in many ways. Here are 10 for your consideration (not in any particular order).
1. Your appearance
2. The words you say
3. The tools you use
4. Your location
5. Your attitude
6. Your response time
7. The clothes you wear
8. The places you go
9. The people you connect with
10. The groups you belong to
From The Idea File
1. Create a personal balance sheet. Spend some time reflecting on your business and personal activities. It is difficult to separate the two when your personal identity can get so wrapped up in what you do for a living. Pay attention to the things that create a favorable impression in the marketplace.
The Greatest Single Obstacle When you go to the marketplace, you are faced with a number of challenges, problems, and
obstacles. One obstacle rises above the rest. It is:
Your inability to communicate effectively what you do and who
you do it with best. Every day you are faced with the challenge of introducing yourself, picking up the telephone,
writing copy for a brochure, ad, or sales letter, and in some form or fashion communicating to an individual or group what you do.
GROWING YOUR BUSINESS!
When you are unable to communicate clearly in the marketplace, it is easy to come up with all kinds of reasons for your lack of progress. If you are unable to speak with any amount of intelligence, you will likely come face to face
with an invisible shield out there in business land. You know exactly what I am referring to. Every time you come in contact with a prospect or any person in the marketplace, you will have
an invisible shield between you and the other person. How you communicate will determine if that shield comes down or it gets thicker.
If you are unaware the shield exists, you can take any indifference or rejection personally. It is your responsibility to position yourself and your firm in such a way that the shield comes down and you can have a meaningful conversation
with another human being. Here is a strategy that will work:
Position yourself by concept, instead of by your titles or your
products and/or services.
There are three positioning strategies you can take in the marketplace. You can position yourself by your titles. You can position yourself by your products and/or your services. Or you
can position yourself by concept and zero in on the outcomes of your work.
Positioning By Titles
Positioning with your titles is the most common strategy that people in business use. It is the focus on the hard-earned titles that you put on your business cards and usually the first words
out of your mouth. Seldom are people attracted to your titles. Putting more than one title on your business card turns off more prospects.
Some examples would be:
doctor, Realtor, printer, financial, planner, consultant, speaker,
banker, accountant, architect, engineer, chiropractor, hair, stylist, designer, freelancer, stockbroker, plumber and the list goes on.
Fifty percent of the marketplace will have a negative perception of your title. Most people have had a negative experience in the past with one of your competitors, or some public mis perception has cast doubt on your profession as a
whole. Some titles are worse than others.
Positioning By Products/Services
The second positioning strategy is positioning by your products and/or your services. Doing this can immediately put you right smack next to your competition.
Examples of products and services would be:
printing, accounting, real estate, insurance, dental office, furniture, legal services, estate planning, banking, cellular, phones, computers, business planning, books, daycare, bicycles, cars, clothes, consulting. You can look in the Yellow Pages for hundreds and thousands more products and services.
If your primary efforts, introductions, and promotional materials are title-centered and product/service focused, then you must do anything you can to set yourself apart from your competition. Look at your tools and think about the last time you introduced yourself. How did you position yourself?
There is a third way and a better way.
Positioning By Concept
I understand your titles are hard-earned and our products and services are what we provide. But, my goal is to help you attract more prospects. You can attract more prospects by moving to the third positioning strategy, that of positioning by
concept. Another way to look at it, is to identify and focus on the outcomes of your work or what happens when customers use your products and services. That should be your primary strategy for differentiation in the marketplace. What happens when someone uses your products and services, and are better for it?
What are the outcomes of your stuff?
From The Idea File
1. Make a list of the 10 primary outcomes of your company, products, and services. If you identify the outcomes and then build your conversations, brochures, web site, packaging,
etc. around these outcomes, you will attract more prospects. And more prospects leads to more sales.
2. Create a great defining statement.
A Defining Statement
The easiest way to position yourself by concept is to create a great defining statement. A defining statement is a simple answer to a simple question, “What do you do?” When you can answer this simple question in a succinct and concise way that attracts more prospects, you will have reached a deeper
level of connection with your prospects and customers.
It is not easy. In fact, it may be the hardest thing you will do in your business. However, the rewards are great. In fact, here is the best reason for creating a defining statement.
Whatever you charge for your products and/ or services will most likely be perceived as an investment in the outcomes they provide versus a cost for satisfying a need or solving a problem. How many times do you answer this question
differently? Do your customers or even your family and friends really understand what you do? What if everyone knew? What if your employees could repeat your defining statement?
Wow! Your business would be great!
On Ideas
When an idea can’t be articulated simply, crisply, and accessibly, there is usually something wrong with it. When I hear a good idea, it has an effect on my mind and body. Sometimes I feel it in my stomach, other times in my throat, still others on my skin — a kind of instant truth detector test.
Personal Pain
When I started Small Business Success, I positioned myself by my titles; i.e., consultant, speaker, and business agent. No one was attracted to me in a way that he or she wanted to know more. Frustrated, I then identified my five core areas of service. They were business planning, financial management, selling strategies, human resources and developing your M.A.P. (or marketing, advertising and promotion.) It was clear to me that most of the problems for small business owners fit neatly into one of these five areas of service. I went back to the marketplace and thought my business would surely take off
and come to life.
Instead of attracting prospects, I repelled them. They ran away from me. I could not even give away my services. This was a painful period in my life. With no progress, I went back to the drawing board and had another strategic planning
meeting with myself. I asked myself a simple question, “What do you do?” My initial response was, “You are not doing anything. No one is interested in what you have to offer.” I then asked myself another question that led me to a
statement that changed my business forever.
Seven Rules For Creating
A Defining Statement
1
Language
2
Conversational
3
Attraction
4
Dream Focus
5
Contains What And Who
6
Dual Focus
7
Repeatability
That question was, “What do you want to do?” I started to write, and here is what came out of that brainstorming meeting:
“I work with people who want to start a business and small business owners who want to grow their business.” I looked at this statement and thought it was too simple. But, I had nothing to lose and everything to gain. I went back to the marketplace and in 30 days seven prospects wrote me a check and engaged me in the process of helping them start or grow a small business.
At the time I didn’t understand what happened. I just reposited the money and went to work on behalf of my clients. It took me more than two years to figure out I had gone beyond my titles and my services to the third positioning strategy.
I now was focused on the outcomes of my work and what I had set out to do when I started my business. Today, I refer to this statement as a defining statement. And then I got this great idea. Why not help my clients create a defining statement? Only I did not know how to do it nor knew what it would take to create a great defining statement.
After careful thought and reflection, I created a set of rules and tips for creating a defining statement. If you hit 3 or 4 of the rules you will have a good one. If you hit 5, 6, or 7 of the rules, you will have a great one. Then the floodgates can open for you as they did for me and others around the country who have created a great defining statement. Explanation of Rules
1. Language
Use eighth grade language. Don’t assume your
market is smart. It doesn’t mean they are dumb.
Too often we use confusing language and phrases
that are hard to articulate. Keep it simple and
concise.
2. Conversational
A defining statement is a simple answer to a
simple question, “What do you do?” It is not an
advertising theme, slogan, or tagline. If you will
not say it, it is not a defining statement.
3. Attraction
It must attract people to you. Of course.
Note: It won’t attract everyone, so don’t get hung
up on trying to create one that you think will.
4. Dream-focused
Focus on the dream of your prospects and the
people you serve best. You will have a greater
likelihood of attracting with the dreams versus
pain-focused marketing efforts.
5. Contains What and Who
Identify the outcomes and who would be best
served by working with you or buying from you.
6. Dual-focus
Create a two-part defining statement; i.e., two
outcomes and you will appeal to a wider target
market or audience.
7. Repeatability
This may be the hardest rule to hit. If another
person can repeat your defining statement or a
part of it, then look out! Watch your referrals go
way up!
Tests
There are three tests you can take that will help you determine if your defining statement is a good one or a great one.
Test #1 Will I say it?
Test #2 Are others attracted to it?
Test #3 Could someone else say it?
How you answer these questions will determine
if you have a good one or a great one. Don’t
settle for a good one. Keep going until you have
a great one!
Speak and Float
When you create a great defining statement, you
should be in a position to speak it and let it float
in the marketplace. It takes a little courage and
a little faith. However, those two things never
hurt anyone.
The Traps
Often, people are fearful of limiting themselves in the marketplace. In reality, when you get a great defining statement, you will open yourself to more prospects and more opportunities. Another trap is to create a defining statement
and then put it on the shelf as if now that task is completed. Following are a number of ways you can use your defining statement.
“When a prospect calls you and repeats your defining statement or a part of it to you, you know you have a great one!
Ways To Use A Defining Statement
1. Introduce yourself with it
2. Use it in your telemarketing efforts
3. Turn it into a headline for an ad/brochure
4. Use it on the homepage of your web site
5. Use it on your voicemail message
6. Put it on your fax cover sheet
7. Write articles built around it
8. Order promotional gifts or ad specialties
with it printed on them And the list goes on.
Note: When you get a great one, you are likely to look at it and think it is too simple. Sometimes your friends and family will think it is too simple. Bingo! You know you have a great one.
Final note: Great defining statements are so simple it is unlikely you could copyright or trademark them. It’s okay. There’s enough business to go around.
“Identify the issue, listen for the other person’s mindset, and respond in a way which meets what that person wants and needs. If you do, you will create magic with that person.”
Mark LeBlanc
Following is chapter one of a publication by Mark LeBlanc. The information is a guide on what to do in the first steps of forming your business. We at Administrative Insight hope you find it helpful.
By: Mark LeBlanc
For years I have heard experts promote the concept of being creative. You must think outside the box. Be creative. I must admit I would nod and agree. Yet, I did not comprehend what they were saying. One day it dawned on me the reason most people cannot think outside the box is the simple fact they don’t have a box to begin with.
It’s as if a person went to an office supply store and purchased one of those flat bankers-type boxes or storage boxes, brought it home, and tried to assemble it. Even though the instructions are printed right on the box, you’re flipping and twisting, tossing, and cursing; and then somehow by magic it comes together, and you begin to use it.
My objective is to help you create a box for your business or professional practice. I refer to putting the box together as an example of putting together the right model for your business. Your
business model should do two things.
You can run your business, make money, and have fun doing it!
• It should drive, you can get excited about it.
• Be a model that others fit into.
Greater Likelihood
If you put together the right model for your business, you will have a greater likelihood that your fun meter will be on maximum and your stress meter will be on minimum. After a number of years, I know that owning and operating your own business can be fun.
The sooner you realize this, the better off you will be.
CREATE A MODEL THAT DRIVES YOU!
Remember Forrest Gump?
In the opening scenes of the hit movie Forrest Gump, the scenery is beautiful, the music is soothing, and you notice a feather floating carelessly and freely wherever the wind takes it. Danger! Many small businesses are like that feather. You go where the wind takes you, where your employees lead you, and your customers dare you.
Spontaneity is positive. Only I would rather see spontaneity occur within a defined framework for your business. Without a framework in place, you can grow, though it could be stressful and chaotic.
Others Fit In
By “Others,” I mean other people, projects, products, prospects, customers, employees, suppliers, etc. If they fit into your model, and your way of being in business and your way of doing business, you will have more fun. Running your own business can be stressful
enough the way it is. Statistics come out every so often by the Small Business Administration and other organizations. They trumpet the idea that five out of ten businesses fail within one
year, and that nine out of ten will not make it to their fifth business anniversary.
Most people think it is due to lack of capital or losing to the competition. It’s not. It is due to a lack of courage and a lack of creativity. This leads to a lack of customers. Read the stories of any of the great entrepreneurs over the years, and you will find success in the midst of great adversity. Or simply ask anyone around you who has been in business for five or more years. Most will tell you the same thing I am going to share with you right
now. So few people will ever do what it takes to make things happen in their own business and life. Will you?
Simple, But Not Basic
I conducted a Growing Your Business presentation in Denver, Colorado, and a gentleman in the audience by the name of Scott Halford was most enthusiastic. Following the presentation, he remarked that my program was one of simplicity and yet it was not basic.
After thinking about it, I realized that one of the reasons it was not basic was the difficulty in achieving that level of simplicity. When you see something in the marketplace that seems so ordinary and simple, it usually is the culmination of sweat, blood, and tears.
Enormous amounts of time, energy, money, and creativity are required to produce a product or campaign that works. Then a product or service finds its way into the hearts, minds, and souls of
people in the marketplace.
Your Model
In this book, I will focus more on the direction you want to go, and what I believe it will take for you to get there. Much of the content, material, exercises, and ideas will be focused on growth
concepts and strategies. Along the way, I will provide you with several new perspectives or variations on ideas that exist in the business world today. If you feel a certain amount of resistance to a concept, a strategy, or an idea, then ask yourself a simple question.
What is the greater likelihood that this idea might work for me versus the same old way I have been approaching this in my business? Most of the stress in business is self-imposed. It can result from setting unrealistic goals with no model in place. This can lead to sleepless nights, poor cash flow, wrong decisions, employee turnover, divorce, illness, and on and on. If you set goals within the framework of a model, you will be on the right track. When I am feeling stressed, I will step back and evaluate what is causing it. Invariably, I discover I have deviated from my model and am working on the wrong project, with the wrong customer, using the wrong product, or with the wrong supplier or vendor.
When I make the decisions that bring me back to my model, the stress melts away and I can get back to having fun in my business. Sometimes it happens so fast, it seems like magic. Your model is comprised of many things, and the following five areas will help you create one for your business. We’ll address a few of these areas and the rest will be up to you. Your model will evolve and grow over time.
This is your opportunity to gaze into a crystal ball and imagine what an ideal business would look like and feel like. There are no unrealistic goals, only unrealistic timeframes. However, it can happen sooner rather than later!
1. Business Planning
I run my business:
______ a.) with a to-do list and no plan.
______ b.) with a plan that contains a to-do list.
______ c.) in my head.
The most successful businesses are those that have some type of written plan. Plans can come in a variety of forms. It doesn’t matter if you have a short or long plan, a simple or complex plan; but, it makes good sense to have a plan. People say they don’t want a plan because they don’t need to borrow any money from
outside sources. A plan is more for you than a bank. A written plan provides you with a sense of direction, and will help you make
better decisions. The best plans provide a solid overview of your business and what you want to see happen in the next five years, the next three years, the next 12 months, the next three months, and the next 30 days.
Out of that plan you can develop a to-do list that will keep you focused and on track. With no plan in place, it is easy to go off on tangents disguised as opportunities. There is power in a well-written, narrative plan. For some of you, an executive summary is all you need. An executive summary is a short three to ten page overview or introduction to a more formal plan.
From The Idea File
1. Write an executive summary. You can get an outline from a book on business planning or purchase a software program that contains examples or language and templates; i.e., BizPlan Builder by Jian Software Company.
2. Carry your executive summary with you. When you are finished, three hole punch your plan, and put it in your day planner or weekly schedule.
3. Evaluate your plan on a regular basis. Spend one hour each month evaluating and updating your plan. You can add and delete
where necessary. Over time it will become a powerful, working document.
2. Financial Management
From a financial perspective, answer the following questions. In an ideal month, your business would reach the numbers listed below.
Our gross revenues* would be $___________.
My owner’s compensation would be $_________.
*Gross revenues will be referred to as an optimistic number later on in this book. Stop! Do not read further until you answer these
questions. Some of you will be tempted to move on. Please, do not. Some of you will wonder if I want your answers for some month down the road when things are going well. I don’t. Look into your crystal ball and answer the questions for right now. Don’t allow your mind to set limits for you. You are in control of your
business, and now is the time to take charge. If you don’t, your prospects will be in charge, or your customers will be in charge, or your suppliers will be in charge, or your employees will be in charge. These are the wrong people to put in charge.
a.m.
What am I doing today to reach my optimistic number of $_________?
p.m.
What did I do today to reach my optimistic number of $_________?
There are no unrealistic goals, only unrealistic time frames. This expression is used as a form of comfort for people who do not reach their goals and get what they want when they want it.
You can reach your goals sooner rather than later if you are focused. The challenge you face is creating a laser-like focus. If you are clear about how much you want and what you are willing to do for it, you can make things happen sooner rather than later.
From The Idea File
1. Identify your optimistic number.* $ ____________________
*Your optimistic number is your gross revenues booked or sold on a monthly basis.
2. Ask yourself the a.m./p.m. questions. For the next 30 days I want you to ask yourself two questions. In the morning, your a.m.
question is:
What am I doing today to reach my optimistic number of $_________?
At the end of the day, your p.m. question is:
What did I do today to reach my optimistic number of $_________?
3. Write your optimistic number on a Post-it™ note and put it in your daily planner. It will serve as a reminder of what you want.
4. Evaluate your optimistic number every 90 days. Over time you may increase or decrease your number with respect to the
decisions you make in your business.
5. Put financial pros on your team.
It is vital you work with a bookkeeping service or accountant and maybe both. In addition, you may want an insurance agent, financial planner, and a payroll service. You are never too small to surround yourself with the right resources that will ensure a strong
foundation for your business.
3. Selling Strategies
Everyone sells! Selling is the key to your success. If you are unable to sell your products and services to a prospect, you will go nowhere except to the graveyard of entrepreneurs and business owners.
It is the critical skill that will determine what you deposit and how it affects your bottom line. Seldom does any product or service sell itself. The good news is that selling is nothing more than a communication process. When you are able to speak or visit with a prospect and share your story, good things happen.
From The Idea File
1. Brainstorm and develop the answers to the following core questions:
a.) What do you do?
b.) How do you do it?
c.) Why should someone buy from you?
d.) What can your customers expect?
e.) What do you charge?
2. Find a partner and role play. Practice makes perfect and provides you with confidence. Prospects prefer to buy from a
business person that exudes confidence, not hesitancy about what they have to offer.
3. Buy a book on selling.
Recommendation:
The Greatest Salesman In The World by Og Mandino
4. Marketing, Advertising, and Promotion In the small business world, our revenues tend to reflect the path of a roller coaster. Up and down, up and down. One of the reasons for that scenario is the sporadic efforts we make when we market, advertise, and promote our products and services. We market, market, market, sell, sell, sell, and deliver, deliver, deliver. Strike a balance between
a marketing project versus a strategy. A project is defined as a single initiative with an anticipated short-term result. Sometimes they work and sometimes they don’t. A strategy is defined as an ongoing initiative with anticipated results over time.
From The Idea File
1. Create an identity. Hire a creative resource who will help you design a visual identity that will support you in the marketplace. It is likely you will need a graphic designer, a writer/editor, and in some cases, a publicist or public relations professional. These
are important members of your team.
2. Create a plan to get you more business. Create a marketing, advertising, and promotional plan that contains a combination of projects and programs.
5. Human Resources
Human Resources is a term used in the big business world. Let’s use it in the small business world. Even if you are a one person operation, the human side of your business is critical, as it
is in the big business world.
Do you or will you have employees over time?
How do you intend to stay motivated?
Is your job description as an owner clear?
How much time off do you want and when?
Will you invest in education and training?
From The Idea File
1. Write your owner’s job description.
Based on the effort you are giving your company, would you hire you?
2. Plan your time off.
Look at your calendar and block out your vacation(s) and other time off over the next twelve months.
3. Develop an employee position profile.
For every full-time or part-time person you may hire, create a one page position profile that includes four components. Use the following four sections as your guide: Role, Responsibilities, Expectations, and Compensation.
Four Commodities
You only have four commodities with respect to your business: time, energy, money, and creativity. Where are you willing to bet your time, your energy, your money, and your creativity where it
has the greatest likelihood of helping you reach your optimistic number?
It is easy to get sidetracked and move away from creating what you want instead of what you think or what you need. You tend to get what you focus on. And the more focused you are, the
easier it is to make your decisions.
Administrative Insight would like to share a great article with you. “Growing Your Business” by Mark LeBlanc gives you insight into what you need to know, and what you need to do to grow your business. We will take the 95 page publication and break it down for you chapter by chapter.
By : James Lowe
Why a Budget is Important. Let it be your guide from beginning to end.
Starting your own home business is a very tricky proposition. Starting your own enterprise is exciting, but it is also inherently full of risk. Enter discipline. Unless you get yourself going on the right foot, then the chances of achieving success are very small.
Conversely, as long as you have the right foundation, and keep working on that foundation, success is almost an automatic thing. It is vital that you run your home business on a strict budget, if you aspire for long term success. Strictly budget your time and your money.
As little as one hour a day, everyday, is enough to make your personal business get better everyday and grow steadily to keep your confidence up. Avoid distractions.
One of the most important parts of running your business is operating on a budget of money and time. Every ad and every supply and tool you buy must earn the value put into it. This is a golden rule that can make you successful as you are going to be at any business.
Many men and women, mostly unsuccessful ones, prefer going with the flow rather than with actually setting goals and budgets. For the most part, this attitude is a mistake. Unless you have an incredible memory and unnatural clear sightedness, planning for both the present and the future is a prerequisite to success.
No matter how you define that elusive concept. Remember, no sloppy ad, supply or equipment buys. Check everything out scrupulously before putting your hard earned funds into it. Always shop for better prices and quality with every purchase you make.
Because this article is about home businesses, we will begin by defining success as the growth and eventual profitability of your particular business. By growth we mean that the business will expand, hopefully outgrowing your home and eventually participating in the corporate arena or whichever one you feel comfortable to work in.
By profitability, we mean that the business will become a cash generating machine, so much so that you attain financial freedom, and never have to work a single day again for someone else, if you do not feel like it. You will be your own woman or man.
This article argues that in order to achieve growth and profitability, discipline is needed, and plans must be made and acted upon. I cannot harp on and emphasize this enough to you.
Crafting your budget
One of the most important plans you must conceptualize is that of your budget. Many businesses, even if they have great ideas and wonderful products, still fail for lack of proper planning and efficient allocation of resources. Do not let this happen to you. Only a home business on a strict budget can ever be truly successful.
First, make it a habit to write down, both what you earn and what you spend, on a daily, monthly, and yearly basis. A common stenographer notebook will be perfect for this. Make a different page for every expense. Every expense and every sale must be recorded so you know where you are everyday.This is the least that you can do.
Look over what you have written down and you will easily see the areas that can be improved upon, especially in the expense column. It is astonishing how many expenses we never notice until we get them down in paper. As the business grows larger, accounting knowledge might be needed. If you have neither the time nor the inclination to acquire the knowledge yourself, find someone who does.
Second, analyze the figures and determine the areas where you can control costs, and where you should add capital. Every business has areas that generate above average returns, as well as areas that under perform. As much as possible, redirect your resources to the projects and ideas that give you the most return. You will quickly start to learn this from experience.
Many years of experience have frequently given me the positive experience of having the lowest cost item or ad working for me best.
The great secret here is to, are you ready? Shop around for the best buy and do not let your emotions run wild on you when you read or hear presentations that have wild claims or will not give you the whole detail story until you pay them first. Hah! Never do it. Give me the details or forget about it. You do not need to take unnecessary risks.
Lastly, stick to your budget. Never forget this. A plan not acted upon is essentially useless, and a budget not followed is as useful as a page of doodles. Once you have written down and finalized your budget, do not make any departures from it unless absolutely necessary. Always have a solid reason for doing so.
Be disciplined. It is the only way you will get anywhere. By running your home business on a focused budget, you are securing your future at a small expense to the present and a nice profit in the future.
Following is information provided by Quickbooks, Getting Started and Reference Guide.
If you’re a new employer or thinking of hiring your first employee, this section contains valuable information to help you get started. For more information, visit our Guide to Hiring and Paying Employees Web site (www.payroll.intuit.com/payroll_resources/guide_to_ iring/index.jhtml).
Classify workers correctly as independent contractors or employees
For payroll tax purposes, workers are generally classified as employees or independent contractors. Whether a worker is an employee or an independent contractor depends on the amount of control the employer has over the worker.
A worker’s classification has certain payroll tax implications. For employees you pay payroll taxes (like Social Security), but for ontractors you don’t have to. A few simple questions can help you determine whether the person you’re hiring is an employee (and will need a W-2 tax form) or an independent contractor (and will need a 1099 tax form).
• Will the work be performed on company premises?
• Will the individual work only for you?
• Will you provide tools for your worker to do his or her job?
• Do you control the hours the person works?
If you answered “yes” to any of the questions above, you’re probably hiring a W-2 employee and not a 1099 independent contractor. For more detailed information on how to classify a new hire, review the IRS’s Publication 15-A (www.irs.gov/pub/irs-pdf/p15a.pdf).
• Get your employer identification number There are a few identification numbers you typically must have as an employer. The government uses these numbers to identify your business and track your payroll taxes.
Typically, you need the following three identification numbers: one from the IRS called an Employer Identification Number (EIN), one from your state revenue department, and one from your state employment department.
If you don’t already have these, you can apply for these identification numbers online by visiting the IRS Web site (www.irs.gov). Some local jurisdictions may also require a business identification number. Consult your local government offices.
• Use the W-4 form to calculate your employees’ paychecks correctly
The IRS requires all new employees to fill out Form W-4, which asks employees to state their marital status and how many tax allowances they will claim. Based on the number of allowances they claim, mployers can determine the amount of federal income tax to withhold from employees’ paychecks.
All new employees should complete Form W-4 on their start date. Your employees can always give you a revised Form W-4 if there is a change in their tax situation, like getting married or having a child. You must keep a Form W-4 on file for each active employee and keep this document for four years after an employee leaves or is terminated. Generally, employers do not need to send a copy of the W-4 form to the IRS unless notified to do so by the IRS. You can find Form W-4
on the IRS Web site (www.irs.gov/formspubs/index.html). Verify the employee’s eligibility to work in the United States Form I-9 Employment Eligibility Verification) is used to document your employee’s
eligibility to work in the United States. This form asks employers to review certain identity documents, like a driver’s license, Social Security card, or a U.S. passport. Although you are not required to, it’s a good idea to photocopy these documents and keep them in your files.
U.S. Citizenship and Immigration Services (USCIS) requires all new employees to fill out Form I-9. Although you don’t need to send the I-9 forms to any government agency, you’ll need to keep a form on file for every current employee in case it’s requested. If an employee leaves or is terminated, you’ll need to keep a copy of his or her I-9 form on file for three years after the employee’s hire date or one year after the employee leaves, whichever is longer.
You can find Form I-9 on the USCIS Web site (www.uscis.gov/).
Report your new hire to the state All employers are required to report new hires to the state; some states also require that you report independent contractors. Your state needs to know who you hire in order to aid in the collection of child support and to monitor unemployment compensation, workers’ compensation, and other public programs. In most states you can provide a copy of the employee’s W-4 form to report the new hire to the state. If you do not report your new hire to the state within the given amount of time, you may face a penalty.
Check with your state (www.acf.hhs.gov/) for specific new-hire reporting requirements.
• Information for New Employers Order law labor posters Labor law posters publicize information for employees like the minimum wage and overtime pay standards. If your business has one or more employees, it is governed by U.S. state and federal labor laws. Posters are made by third parties, not the government. You can easily order compliance
posters online. Get workers’ compensation insurance Required for almost all employers, workers’ compensation insurance is meant to protect
your company from liabilities in case a worker suffers an injury while on the job. The premium you pay depends on the category of your employee. Without adequate workers’ compensation insurance, you may be held personally liable for both the cost of the employee’s medical care and for the lost wages while the employee is unable to work as a
result of an on-the-job injury.
To learn more about what is required in your state, check out the Office of Workers’ Compensation Programs (www.dol.gov/esa/).
Hiring an employee Here’s some other information to help you get started hiring employees:
• Determine how much to pay an employee
Keep in mind the real cost of hiring. Hiring an employee costs more than just his or her wages. Payroll taxes can add 15% or more to the total cost of hiring an employee. You can prevent a surprise in your business budget down the line when you understand employer taxes and insurance costs. Review the information provided on our Web site
(payroll.intuit.com/payroll_resources/), where we explain what you need to withhold from an employee’s paycheck and the taxes you are responsible for as an employer.
• Create a job posting
Before you write the posting, think about what you want the person to do, how much of his or her time you’ll need, and what skills are required to do the job. A good job posting is specific and informative.
How do you find the person you’re looking for? You can use our job posting template to help you get started (http://http- download.intuit.com/http.intuit/CMO/payroll/assets/
SampleJobApplicationForm.doc). We provide resources to help you write an effective job posting that will help you find a good employee, and we offer tips on interviewing applicants.
By: Tom Pretty
Choosing business banking services can be complicated and tiresome for business owners. Small businesses are particularly affected by the need to have a specific business banking package; as this helps growth and development. It is hoped that this article will highlight some of the more common factors which should be included in the decision making process of selecting a bank.
As a small business one of the first questions you need to ask is whether the bank has an advisory service. Many banking providers today have business advice teams on site that are there to supply help and assistance to small businesses. Ideally a company needs an advisor on hand to give guidance in terms of financial management and planning. Ultimately this should form a major element in selecting a banking service.
In today’s fast paced business world having a bank that provides effective online services is essential. Having expansive online banking means that your financial activities can be performed to your schedule and not the bank’s; this is fundamental for small businesses where finding the time to visit the bank can be difficult to organize. Ultimately it allows you to focus on the growth of the business.
Many banks offer financial lending services with their account packages. Loans to some small businesses form an important element in funding and operation. Hence if finance plays an important part in your business plan it is worth taking the time to research different bank’s offerings and balance these against any other services that are provided. It is also worth remembering however that the majority of banks will require a detailed growth and development plan before granting loans.
Another important factor which should be taken into account when choosing a bank is the customer service on offer. Naturally you will want a bank that cares for you as a customer, contact should be straightforward and any queries should be answered quickly and succinctly.
Fortunately the internet is an excellent resource for researching bank’s reputations and should beutilized as much as possible.
Many company directors become obsessed with interest rates when choosing a bank account for their operation. However this can be a mistake. Ideally a bank account should be chosen less for the interest rates and more for the cost of fees and charges. Remember that as a small business, profits and savings may not materialize for an extended period of time; hence lower charges will be a more preferable option during the initial stages.
This article has striven to set out a number of important factors for those selecting business banking services for a small business. This information should be used as a guide and contains points of reference to ease the financial processes allowing a company to grow and prosper.
However, bookkeeping help can also be available in various other ways. For one, small and medium sized operations can turn to bookkeeping help software which takes care of all work.
There is a wide variety of software like QuickBooks, Peachtree, and Microsoft Money. All one needs to do is consult the company’s accountant and get the most desired software installed. It reduces the cost of manpower effectively.
Another alternative to this kind of bookkeeping can be learning a bookkeeping course. This comes in most handy in the case of individual entrepreneurs who might not have the kind of financing required to hire people for all departments. There are several online and traditional institutions that offer courses to suit the preference of people.
However, the most widely used way of accessing bookkeeping help is by outsourcing this process. Outsourcing helps immensely because of the nature of the business. Jobs are outsourced to countries like India where the cost of educated labor is comparatively low. This is profitable for companies that have outsourced their processes. The internet is flooded with profiles of companies that provide bookkeeping help. They claim to work round the clock so that the work of their client does not suffer. Moreover, they have collated data on their website which proves that outsourcing one’s bookkeeping needs can be very beneficial. You can go online or even can seek counseling and help from traditional bookkeeping consultants who provide information regarding lots of bookkeeping services and effective prices.
Bookkeeping help can surely take the load off the parent organization. They can also keep their accounting books up to date because the company that provides the bookkeeping help can log in to their accounting books in a secured manner, do their work and can log out. Therefore, bookkeeping help should be considered for the smooth functioning and increased returns of any organizational machinery.
Earlier, every company necessarily hired a bookkeeper or even a bookkeeping team to do the work. However, over the years, the burden of having such a large group of employees can be cumbersome. It increases the cost of running the company. This is where the business of outsourcing comes in. It is very advantageous to give away jobs like bookkeeping to companies specialising in this kind of profile. Bookkeeping help reduces operating costs, improves flexibility and enables effective time management.
Welcome to Administrative Insight, we would like to start our blog by offering you some free accounting education.
Starting a small business can be daunting, there are many facets that have to be dealt with to pull it all together, none more critical than bookkeeping. Please use these tutorials to get started right. We are rooting for your success and a good set of books can be a key.
Accounting Tutorials
Learn accounting with the world’s largest free online accounting course. AccountingCoach.com will help you become financially literate.
Small Business Accounting
An online business accounting resource that’s FREE! Learn accounting principles, business investments, debits and credits, financial ratios, improving profits, breakeven point, and more. AccountingCoach.com will help you become financially literate.
Online Accounting Resource
Discover accounting with the world’s largest free online accounting course. AccountingCoach.com will help you become financially literate.
Welcome to WordPress.com. This is your first post. Edit or delete it and start blogging!
