I made a profit? SO .....Where is the money?

Posted on Friday, November 4, 2016 at 06:24AM by Registered CommenterEarl L. Sigmund | CommentsPost a Comment | EmailEmail | PrintPrint

 

 

 

This is a common expression voiced by business owners when their accountant informs them of their businesses' bottom line for the year? It kind of tells me that there was a real disconnect between the bookkeeper and the business owner; or a real lack of understanding regarding just what items paid out in a business are tax deductible and which items are not (or maybe the timing of the tax deduction is deferred in part to a future date).  

 

Why does this disconnect between owner and accountant occur?

 

   The business owner may be overwhelmed by the chores of running a business, and as a result the owner was never properly educated on exactly how a business works for tax purposes. For example, the owner may have just bought a large capital item for the business which greatly reduced his cash balance, but only very slightly reduced his profit for tax purposes since such an expenditure may be deferred to a future year or years for that matter. The owner also may have thought that items such as loan repayments are 100% tax deducible when in fact only the interest portion of that loan repayment check is tax deductible.

The conclusion:  

Business owners somehow have to make the time in their busy lives to learn and then monitor the financial end of their businesses so that the shock of a tax profit is eliminated once and for all. 

 

UNHAPPY AT WORK? You are not not alone.......

Posted on Saturday, October 1, 2016 at 09:27AM by Registered CommenterEarl L. Sigmund | CommentsPost a Comment | EmailEmail | PrintPrint

  The latest statistics available show that more and more people are unhappy at their current place of employment. Those thinking about starting their own business are now approaching 50% of our working population. Actual new business startups are up about 50% since the recession of just a few years ago.

   Just what factors in today's workplace are making workers unhappy? I think the following factors play the largest part in job unhappiness:

 

 1)      BAD MANAGEMENT - The company is not going anywhere and does not seem to have a real plan to grow or even sustain their current business volume. Workers feel "lost" and owners do not communciate well or at all with the workers.  

2)      BAD LEADERS - Immmediate Bosses and Managers are only concerned with squeezing every ounce of production out of their employees and show no concern or passion for the outside - of - work employee issues that each worker faces at one time or another. 

3)      STRESS & OVERWORK - This is the result of the bad management and leadership issues detailed above. 

4)      COMPANY BUREAUCRACY - There is just too much red tape to change things at work. Just recommending change might be detrimental to one's job security.

It's no wonder in this type of work environment that American workers are dreaming more and more about starting their own businesses. 

  

www.NewBusinessLearningCenter.com 

 

 

 

 

 

 

   

Starting your own business now? You are not alone...............

Posted on Tuesday, May 24, 2016 at 06:19AM by Registered CommenterEarl L. Sigmund | CommentsPost a Comment | EmailEmail | PrintPrint

    Why NOW? For the first time since the recent recession, business startups are exceeding business failures. The % of individuals in the US actually starting a business is up 50% since 2010. If your current workday is one that is going nowhere fast................why not at least look into determining if self-employment is for you?

       It has never been a better time to take the plunge.  It has never been cheaper to start a business- technological advances, cheap interest rates, the ability to work more at home, and low-cost social media marketing and networking; all these factors make your initial cash investment smaller than ever.

      A new business is all about using your brain and figuring out what goods or services the world, your state, your city, or even your neighborhood needs but can't get; or to get that good or service it is either just too hard to get, too inconvenient to obtain , or just doesn't exist at all.  Research your idea - you can never do enough research. Then test market your idea on your target market and see if your idea for a new business makes as much sense to others as it does to you. Is your product or service one that really solves someone's need or pain? Is it really unique? Is your idea a realistic one considering your current lifestyle and financial situation?

      We all need to go thru this thought process at some time time in our lives. Is this YOUR time?   

   www.NewBusinessLearningCenter.com

 

What will kill your business in 2017?

Posted on Friday, January 1, 2016 at 08:52AM by Registered CommenterEarl L. Sigmund | CommentsPost a Comment | References1 Reference | EmailEmail | PrintPrint

 

 

The 16 Major Blunders that will Kill Your Business in 2017

                              By  Earl L. Sigmund, President 

                         New Business Learning Center, Inc.   (215) 801-8031

Every person who works for someone else in today’s business world dreams about someday owning their own. This so-called “entrepreneurial itch” peaks during times of job-stress or unexpected home pressures that help make up the adventure that we call life. Recent studies show that more than 50% of all workers are “unhappy” in their current job and long for a business to call their own.

The passion to start a business on your own is tempered by the natural fear factor of failure which grips the mind of every would-be entrepreneur. Nobody likes to fail ……….and fail you will if you don’t properly plan your escape route from your “employee prison”.

After working with thousands of businesses over more than 30 years, I have identified what I call the “sweet sixteen”  most common blunders made by entrepreneurs in starting their own businesses.

Avoid these blunders, beat the odds, and go live your dream:

Blunder # 1: Choosing a type of Business that you do not Truly Like – but others make money in it.

 This is actually a lot more important than running out of money.

Blunder # 2: Failure to find your Niche (eg: Selling an identical product or service that the large chain stores sell)

Blunder # 3: Underestimating the initial total Capital Investment required to get the

business off the ground

Blunder # 4: Failure to have a Realistic Written Business Plan drawn up at startup with realistic sales projections.

Blunder # 5: Failure to set up a Workable Referral Network prior to opening the business- a free sales force for your business.This is crucial – don’t leave your current job without it.

Blunder # 6: Under-Pricing your product or service

Blunder # 7: Lack of Outsourcing of some business functions to others…hire a clone quick!

Blunder # 8: Misclassifying Employees as Subcontractors

Blunder # 9: Insufficient time and funds spent on Marketing & Selling your product or service

Blunder # 10: Under-Insuring and/or failure to incorporate or set up a LLC entity structure

Blunder # 11: Physically Over-working- the all work / no play concept

Blunder # 12: Failure to inform people who care about you that your work hours and work habits will drastically change and obtaining their acceptance of the situation

Blunder # 13: Spending too much on Equipment & Overhead

Blunder # 14: Lack of knowledge of tax laws & local regulations

Blunder #15: Extending too much credit to customers

Blunder # 16: Lack of adequate Research of the industry and marketplace before starting up.

Avoid as many of these blunders as possible and remember to keep your hands out of your wallet

 until you finish all your homework.

Then go out, take a deep breath, and show the world that you

made the right choice!

 

 

 

You Should Need to PASS A TEST to start a business!

Posted on Sunday, November 1, 2015 at 09:15AM by Registered CommenterEarl L. Sigmund | CommentsPost a Comment | EmailEmail | PrintPrint

  With the high number of business startup failures reported each year continuing to outnumber the number of new registered startups, maybe it is time to consider this unconvential idea. I hate government regulation as much as anyone, but I hate even more seeing individuals ruin their lives over a business startup gone wrong.  Since most business opportunities, multi-level marketing schemes, and even franchises for the most part escaping government scrutiny until a real level of public outcry is heard, I think it is a time for us to consider an approval process for all new businesses.

   NO REALISTIC reviewed business plan = NO issuing of a business name, or approval of any legal entity formation by the powers to be. I do not want goverment involved at all in approving the plan for merit. I just want non-partisan professional business people familiar with the type of business being considered to review a simple written business plan put together by the applicant, make recommendations for revisions, and the applicant be required to sign off that this process was performed. The applicant then will be asked on every government required to open the business, a question asking whether the applicant had a business plan prepared and reviewed, and that the applicant fully understands the risks involved BEFORE taking the plunge. Too many prospective business owners are "sucked-in " by fast-talking salespeople and get too excited about their new venture to think with a clear and rational mind. I just want prospective businesses to be forced somehow to sit with someone who will clearly point out the risks involved in starting any new business venture.

   The current easy liberal democratic way of letting everyone start any business they want without a viable business plan reviewd by a professional just isn't working today. It is time to put a form of  required "second opinion" approval of some kind before the new business venture is officially hatched.      

               

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