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A
new year calls for new approaches to small business, page 2
6. Consider, or reconsider, the Internet.
Examine the demographic makeup of your customers. Potential online
customers typically tend to be younger, have higher incomes and more
education. A company Web site may increase awareness and add a new
avenue for promoting your business and the products or services you
offer.
There is increasing trust in online purchasing. No,
storefronts are not boarding up because of online retailers. But
it is evident that online purchasing is here to stay and will grow
over time. Internet advertising also is on the increase. This may
be an option to consider, but advertise on sites your customers
are likely to browse.
7. Compare yourself to the competition. Did
you notice a shift of market shares to or from the competitors?
If you gained, then recognize why this occurred and retain it as
part of the new year's strategy.
8. Review your expenses. No expense should
be incurred unless it results in a sale equal to or greater than
that expense incurred. If one didn't, ask yourself why you incurred
it. By keeping down unproductive expenses, you will be better able
to maintain cash reserves. A contingency
fund is critical in any economy, but especially in one that
is not fully recovered. Remember: Even though sales might dip, the
bills still need to be paid.
9. Examine your business structure. According
to the U.S. Department of Commerce, there is a surge in personal
income for proprietors, many no doubt in response to being let go
from other jobs. I strongly urge proprietors, both old and new,
to consider forming
a limited liability company (LLC). Procedures and costs vary
from one state to the next, but the bottom line is that an LLC can
typically limit company liability exposure to the total capital
invested. It only takes one wily, disgruntled customer to potentially
wreck havoc on your dream of business.
10. Learn the tax laws. I've
said it before, but I cannot overemphasize the need to familiarize
yourself with the federal and state tax rules affecting your business.
This applies whether your business is on Main Street business or
in your home. For example, you no longer need be concerned with
the taxable portion of a home office as long as the home business
was operated in the last three consecutive years prior to the property's
sale. Home-business operators who are unaware of this change could
end up overpaying taxes. Over the years, I have learned that many
home-based business are still not aware of the many deductions that
can be taken against income.
The last few years have demanded much from small business
owners, but the avenue for opportunities remain open and varied.
Today's entrepreneur just needs to do basic business homework and
these resolutions are a good start, any time of the year.
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