Posted by Eric Hubbs on Tue, Nov 24, 2009 @ 08:51 PM
By Michael Gunther, President and Founder, Collaboration LLC
What a year this has been!
We've seen ups and downs in the ever-changing economy, challenges in growing businesses during the Great Recession, and impacts on our communities from both the housing and unemployment crises. The list of ups and downs could go on; but the list of things to be thankful for should be even longer - and can be the list that shapes our attitudes as we approach a new year.
This Thanksgiving I encourage you to take a few moments and acknowledge the individuals and situations that have assisted you in achieving your goals this year. I would like to share my list:
- The Economy - no, I'm not thankful that we are experiencing the existing economic situation, but I am grateful for the associated challenges that have made me and others better business people. We have had to go back to the basics of earning business. We have had to be innovative in creating new approaches, services, products, etc. We have had to work hard to pare down our debts and expenses. I'm grateful that these economic times have allowed businesses to rethink and reenergize their organizations to first survive and then to thrive.
- The Community - it is amazing how in a crisis people band together. We are fortunate that we live in a community that relies heavily on small businesses, because our needs have created many organizations and individuals dedicated to supporting the success of businesses. The local Chambers of Commerce, The Economic Vitality Corp., SCORE, etc. are all focused on providing resources and tools to help local businesses succeed.
- My Team - I am fortunate to have employees and business partners who share my passion for helping businesses be profitable and sustainable. Their drive and dedication inspired me through many challenges this year and continue to motivate me to be better at what I do.
- Our Strategic Partners - at Collaboration, we have a remarkable group of professional strategic partners (from lawyers and bankers to accountants to technology firms) who not only support us but also provide support and resources to our clients.
- My Peers - if you don't have a group of other business owners that you can talk to about challenges or use as a sounding board for issues and opportunities, then you are missing a vital piece of growing your business. I am thankful for the peers that I meet with on a regular basis who help me stay grounded.
- Our Clients - I am very grateful to have the opportunity every day to assist passionate people to build their businesses. I am inspired by their commitment and determination to make their dreams a reality. Every time I work with these small business owners, I am confident our economy will grow. They truly are the backbone of our economy!
- My Family - being the 14th of 17 children has provided me a large support network. Add in my life partner, and I have the balance I need to stay focused even during the most stressful days.
Is it 
cliché that during the week of Thanksgiving I am writing a list of things that I am thankful for? Maybe. But writing this list has reminded me that no matter how large the challenges I face, I have strong connections that provide me the inspiration, motivation, balance, and grounding to support me in achieving my goals.
The Bottom Line
Writing out a list of what you are thankful for allows you to see past your challenges to what matters most. Start your list today: Who inspired you? What have you learned about yourself or your business from this Great Recession? Then, make your list the foundation for setting higher goals for your business next year.
Michael Gunther is Founder and President of Collaboration LLC, a team of highly skilled business professionals who are dedicated to assisting proactive business owners to build profitable, sustainable businesses through results-oriented education, coaching, and consulting services. Learn more at www.collaboration-llc.com.
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Posted by Eric Hubbs on Fri, Nov 20, 2009 @ 09:23 AM
We would like to welcome Certified Public Accountant Laura Krueger of Wong and Krueger as our guest blogger with her advice to business owners for preparing their 2009 taxes.If you have any questions about what she has to say, contact her!
TAX PLANNING 2009
November and December is a great time to meet with your accountant.
Use this meeting to:
- Review your company's performance year to date
- Estimate income for the rest of the year
- Establish projections for 2010.
In 2009 it's especially important to plan your tax strategy. Even so, there are exceptional challenges in doing so. Most of us have been dealing with economic and market challenges for many months now. Usual tax planning strategies of prior years may not work in this environment. In addition, we are unsure of what 2010 will mean for the health of the economy and for new tax legislation.
Inform your accountant of any changes in your business and personal life. Were you married or divorced in 2009? Did you have a child? Did your business structure change or did you have new investors? These types of changes may have a significant effect on your 2009 taxes.
Next, review the deductions you and your business took in the prior year and determine whether they will still apply to your current year situation. Take a look at new tax law and see what effect it will have - are there deductions you no longer qualify for? Are there new deductions you can take advantage of?
Following are some specific strategies to discuss with your accountant:
Net operating loss carryback: In November the president signed into law the Worker, Homeownership, and Business Assistance Act of 2009. This legislation will help companies that experience a loss to stabilize their businesses and be in a prime position when the economy enters recovery. The net operating loss carryback provision is expanded to allow companies of every size to carry back losses incurred in either 2008 or 2009 against income earned in any of the five prior years. Offsetting previously paid taxes results in a tax refund from the IRS. This provides companies with much needed cash in the near term. Take advantage of this as early in 2010 as possible.
Bonus depreciation: The stimulus bill extended the first-year 50% depreciation of the cost of new equipment purchased and put into service this year. The "bonus" is in addition to normal depreciation and deductions available under Section 179. It applies to purchases of tangible personal property used in a business. If you are planning to purchase equipment in the near-term you may want to consider completing your purchase in 2009 to take advantage of this provision.
Section 179 Depreciation Deduction: The Section 179 deduction has been increased to $250,000 for qualifying property placed in service in this year. This deduction allows you to depreciate an asset in total in 2009.
Future tax increases: Tax rates are likely to increase when the Bush tax cuts expire. The top two individual income tax rates, currently 33% and 35%, will likely roll back to their 2000 levels of 36% and 39.6%. In addition, the top capital gains rate will likely rise from 15% to 20%. If your income level places you in one of the top brackets you may consider accelerating income into the current year instead of deferring it.
Have a talk now with your accountant to set a course for managing your tax planning for 2009 and beyond.
CPA Laura Krueger can be reached by clicking here.
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Posted by Eric Hubbs on Tue, Nov 17, 2009 @ 09:36 AM
By Michael Gunther, President and Founder, Collaboration LLC
Building a Stronger Community
Small businesses are the heart of our country and are essential to building stronger communities. Think about it; America's growth has always been a result of risk takers - from our earliest pioneers risking everything they had for better lives to our recent innovators rapidly developing technology to enhance how we live, work, and play. This free, independent spirit that has driven our country forward comes from the heart of entrepreneurship.
Entrepreneurs' ambition to do something better, different, or faster than others drives them to risk their time and money, which in turn builds a stronger community by providing jobs and resources. As we work to rebuild our economy, it is essential that we celebrate the contributions of entrepreneurs and encourage others to join in.
Thanks to multiple government agencies, non-profits, and for-profit organizations that have taken the time to research statistics behind the contributions of small businesses, our society has begun to realize just how much business owners and entrepreneurs truly strengthen our communities.
For example, the U.S. Small Business Administration Office of Advocacy (2009) reports that the estimated 29.6 million small businesses in the United States employ just over half of the country's private sector workforce; hire 40% of high tech workers, such as scientists, engineers, and computer workers; include 52% home-based businesses and two percent franchises; represent 97.3% of all the exporters of goods; represent 99.7% of all employer firms; and generate a majority of the innovations that come from United States companies.
This knowledge has led to programs and education designed to help entrepreneurs get started. One of these movements, Global Entrepreneurship Week, will take place November 16-22 and will bring together millions of young people worldwide, encouraging them to embrace innovation, imagination, and creativity.
Founded in 2008, Global Entrepreneurship Week seeks to accomplish four goals:
Inspire. Introduce entrepreneurship to young people under the age of 30 who otherwise might not have considered it a career path.
Connect. Network with young people across national boundaries to discover new ideas at the intersection of cultures and disciplines.
Mentor. Enlist inspirational entrepreneurs around the world to coach and mentor the next generation of talent as they pursue their dreams.
Engage. Demonstrate to opinion leaders and policymakers how entrepreneurship is central to a nation's economic health and culture.
To accomplish these goals, organizers promote the following four Official Activities that anybody, including YOU, can register to be involved with:
Global Innovation Tournament. Organize a group of students to compete to develop innovative solutions to a specified global problem.
Speednetwork the Globe. Host an event where every five minutes participants find another person to network with, encouraging them to unleash energy, share ideas and make connections - fast.
Mentoring Madness. Inspire young entrepreneurs by organizing a local panel of successful entrepreneurs to hold discussions with them.
Global Clean Tech Open. Encourage youth to submit their clean technology business idea - from ways to generate clean energy to ways to policy initiatives. The winner receives start-up funds and assistance to start a business.
By participating in movements such as Global Entrepreneurship Week, we have the opportunity to build a stronger community: globally, nationally, and locally.
The Bottom Line
As an entrepreneur, YOU are key to a sustained recovery - to grow the economy, to create jobs, and to revitalize America. I encourage you to support the small businesses in your community and to encourage our youth to think about a career in small business.
For additional information on Global Entrepreneurship Week, go to: www.unleashingideas.org/usa
Is there a topic that you would like Michael to discuss? If so, email him at mgunther@collaboration-llc.com or call (805) 541-9040 to let him know.
Michael Gunther is Founder and President of Collaboration LLC, a team of highly skilled business professionals who are dedicated to assisting proactive business owners to build profitable, sustainable businesses through results-oriented education, coaching, and consulting services. Learn more at www.collaboration-llc.com.
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Posted by Eric Hubbs on Mon, Nov 02, 2009 @ 02:09 PM
By Michael Gunther, Founder and President of Collaboration Business Growth Specialists
What's Scary this Season?
It's Halloween season; traditionally a time of fright and horror, but who could have predicted that our biggest scare would come from lending institutions? Small businesses make up the majority of jobs in the United States and it is their strength that also determines the strength of our economy, yet the financial industry is making it more difficult for small businesses to thrive in our current economic times.
Over the last six months, credit for small businesses has tightened up in numerous ways. Here are some examples:
- Advanta (credit cards for small business) has been a leading provider of credit to small businesses. Last May, when the company closed all of their small business credit card accounts, close to 4 million small businesses were impacted.
- Last spring, American Express closed hundreds of thousands of lines of credit for small businesses.
- Banks have tightened credit to most manufacturers. This is impacting numerous businesses that are no longer able to gain credit terms from their manufacturers to purchase the goods they need to provide their product or service.
- In the past, many business owners have used their Home Equity Line of Credit to fund their business. Bank of America and other banks have started closing or decreasing lines of credit.
- Now we learn that Citibank and Chase are beginning to increase their interest rates to 29.99%. This is not due to poor payment record; rather, it is because these companies are trying to beat the new legislation taking effect in the next few months that will prohibit them from raising their rates so randomly.
I am not suggesting that businesses do not need to manage their debt; what I am saying is that for small businesses to expand and grow they need capital, and for the majority of small businesses this means they need to obtain credit. Yet credit has become and continues to become even tougher to obtain during this "Great Recession."
While financial institutions need to begin loosening up their funds to truly get our economy back on track, the government also needs to step in. Funds to support lending for small businesses were less than 1% of the original total stimulus package. This week, the Obama administration has floated some new ideas to support community banks in lending funds to local businesses. Right now it is an idea with few specifics; but as business owners and concerned citizens we can help this initiative come to fruition.
In addition to managing debt, let's take some other proactive steps. First, meet with your local banker and build a stronger relationship with them. Keep them informed of how your business is doing and let them know what your current and future cash needs may be. Second, evaluate all your credit card accounts and lines of credit. Have your rates been increased? Do you really have enough credit to support your growth? Lastly, remember that credit should be used as a tool to grow and expand your business. If you are using your credit to cover every day expenses, you may need to make further financial cuts in your business or increase your sales efforts.
The Bottom Line
Businesses need cash to grow. Start by managing your debt and cash flow and then take action! Call or email your representatives in Washington and ask them to put pressure on the credit card companies that are increasing rates to unfair levels; ask them to create the necessary programs that will bring more lending to our local communities. Now is the time to act and promote our needs as small businesses.
Michael Gunther is Founder and President of Collaboration LLC, a team of highly skilled business professionals who are dedicated to assisting proactive business owners to build profitable, sustainable businesses through results-oriented education, coaching, and consulting services. Learn more at www.collaboration-llc.com.
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