The Power of Proactive Management

Every small business owner knows the feeling of having their day thrown off course by a crisis. For many, the situation can get so severe that nearly every day is wasted reacting to emergencies instead of pursuing a strategic plan. While you can’t ignore urgent issues, it is critical to minimize their impact on your time. Otherwise, you can’t accomplish …

Don’t Undercut Yourself

When you’re starting a new business or wanting to offer new products or services, it’s easy to think that pricing your products or services low will help you attract customers. The strategy of lowering your prices to attract more customers or clients is called penetration pricing, and it’s frequently used by small business owners to get their first customers or …

Do You Want to Be an Independent Contractor or Employee?

If you have a choice to take a job as an employee or independent contractor, which one is better? It depends on a few factors. First, Do You Have a Real Choice? The IRS has a strict set of guidelines for determining whether someone is an independent contractor. Neither employers nor employees can choose one or the other just because …

Could Sales Tax Rules be Changing for Online Businesses?

The Supreme Court ruled in the case of South Dakota v. Wayfair?that states can force online retailers to collect sales tax even if they have no physical presence in that state. This overturns the previous rule that an online retailer only has to collect sales tax for states where it has a physical presence. Here’s what you need to know …

Can You Deduct Startup Expenses Before You Make Money and How?

Are you starting a business? When and how you deduct your expenses depends on whether you’re in the startup phase or have begun operations. What is the Startup Phase? For tax purposes, the startup phase is the time before you are actually in business. This might include investigating the creation of a business, buying or leasing business property, getting other …

How to Establish Business Credit

Even if you’ve formed a corporation or LLC, banks may still want you to provide a personal guarantee for any loans they make to your business. If you want banks to ignore your personal credit profile and not request a personal guarantee, you’ll need to establish a solid business credit profile. Here’s what you need to do. Understanding Business vs. …

Cash for Equity Can Cost You so Much More in the Long Run

Offering key players, such as developers, marketing directors and executives,?equity instead of cash?has been a long-running tactic that entrepreneurs have embraced over the years. When you offer equity in your company,?investors contribute cash, expertise or both for ownership in your company. It’s an ideal tradeoff: you get to take advantage of leveraging cash for your business and saving on doling …

4 Financial Tips for New Freelancers

Whether you’re just starting out as a freelancer or have been self-employed for years, it pays to stay on top of your finances. By making an effort to track your income accurately, put aside money for tax, and plan for your future, you’ll avoid many problems later down the line. If you’re not confident about managing your finances, don’t worry …