1. Keep mileage logs.  This is one of the hardest things to do but will help if you are ever audited.  The mileage rate for 2011 was 51 cents.  Therefore, if you drove 300 miles a month, you could deduct $153.00 from your profit.  That may not seem like much, but it adds up.  And if you are like me, you probably drive a lot more than that each month.  Check out next week’s multimedia blog for examples of good mileage logs.
2. Plan for retirement.  Depending on the type of retirement account you set up, you can end up saving money now and be able to retire in the future.  Speak with an investment advisor to see what is best for you.  If you don’t have one, contact me and I can give you a few names to contact!
3. Ask about new tax relief.  For the past several years, different bills have been passed at both the state and federal level giving tax breaks for different things.  Talk to your accountant throughout the year to see if any tax breaks get passed or sign up for Google alerts on the topic.
4. Make sure you have a CPA!  This is something that many small business owners overlook.  Having a CPA make appear to be an expense you cannot afford, but a CPA will help you find areas to save on, make sure your taxes are prepared right, and give you advice throughout the year.  If you don’t have one, contact me and I can give you a few names to contact!
5. Get accounting software.  If you only have a few expenses each month, this many not be necessary.  However, if you have a lot of expenses and income from multiple streams, accounting software (such as Quickbooks) helps you track where your money comes from, and where it goes!

http://youtu.be/EyoH9_gyihg

1. Determine who is going to own the business.  If you are unsure if you are going to own the business by yourself or with others, bring this up at your meeting as your business attorney can let you know some things to think about.  Partnerships do work, but they take a lot of work.
2. Think about some names for the business.  It is best to have 2-3 names ready when you come see your business lawyer.  In many cases, the first name will work, especially if it is unique, but if there is someone already using the name for their business having more than one name ready ensures that you can get the ball rolling.
3. Note any expenses already incurred in setting up the business.  Your small business attorney will need to know what type of expenses you have had and what type of expenses you foresee.  Your small business attorney and your small business accountant will probably work together to determine what expenses are deductible and if one tax entity would make sense over another based on the expenses you have had and you foresee.
4. If you are interviewing business attorneys, have questions ready to ask about their experiences.  For instance, I usually like to tell potential clients about other types of businesses I have set up, accountants that I have worked with, and information about my background if asked.
5. Have a list of your advisors on hand.  If you have advisors, you should bring it with you.  Even if you don’t have all the advisors you need, bring the ones that you have so that your business lawyer can help you fill in the gaps.

1. Attorney:  Your attorney will help you stay out of legal trouble from helping you choose the right business entity to writing the sales document when you sell your company for millions!
2. Banker:  Your banker will help make sure you have the right accounts set up, walk you through loan processes, and offer general business advice if they are good.
3. CPA:  You accountant will know more about you than your spouse; he or she should know where you spend your money, how to spend it so you save on taxes, and file the right documents so your city, state and the IRS don’t come after you for unpaid taxes.
4. Insurance Agent:  Your insurance agent will make sure you have the right coverage without having too much coverage and being insurance poor; set up yearly reviews so that if your business changes, your coverage changes with it.
5. Mentor/Business Advisor:  You mentor should be someone that is in a similar field or at least has owned his or her own business; he or she will give you advice when you hit bumps, a shoulder to cry on when you have lows, and celebrate the successes of your business throughout your company’s life!

Before going into business with someone else, you really need to think about it. Partnerships can work, but like marriages many of them fail. Here are five things to think about before starting a business with someone else.

1. Can you work together? This is the biggest question you need to answer. If you can’t work together then you shouldn’t go into business together. It may seem like common sense, but many times people over look this because they want to go into business with a friend, a spouse, or a family member. Do some soul searching to make sure that you can work 60 to 80 hours a week with this person.
2. Do your work styles complement each other? If one of you is really messy and one of you is really neat, it may seem okay to begin with. However, one year, or even one month, of sharing an office can lead to fighting over cleanliness. If one of you wants to aggressively market the business and the other wants to go slow and steady, it may cause friction. Make sure your work styles complement each other.
3. Are you all going to work in the business or are some of you only investing? If you expect you and your partner to both work and contribute the funds to start the business and your partner expects you will do all work because he is only funding it, there is going to be an issue. Make sure have discussed who is contributing what to the business, whether time, money, or experience.
4. Are you all ready and willing to put in the same type of hours if you are going to all work in the business? If you think you and your partner should both be working 80 hours a week until you are successful, but your partner only wants to contribute 40 hours a week then there is going to be friction. Talk with your possible partner or partners to make sure you all have the same goal.
5. What are you going to do if the partnership goes south? Prior to starting a business with partners, you need to discuss what you are going to do if something goes south with the business. Is one of you going to be able to buy the other out? Will you dissolve the business? Can one of you outvote the others?

With the new year, comes urgings to do new things!  So, this month we are talking about things to think about when starting a business.  Here are five things to think about if you are thinking of starting a business:

1. Do you have the dedication to work long hours?  Starting a business takes time.  Even if you are lucky enough to eventually make money only working a few hours a week, that will probably only happen years, if not decades, after starting your business.  You need to be willing, and ready, to work 60 to 90 hour weeks for the first few years.
2. Have you found a business you are excited about?  As said above, you are going to be working a ton of hours.  Your business will require weekends, nights, and holidays.  Make sure your business is something that you love because it will become your life.
3. Can you fund your business?  Many people have an idea but they don’t have the funds to start a business.  Starting a business takes time, effort, and most importantly money.  Most businesses are not profitable the first year so you will need money to both fund the business and fund your own personal needs.  Even if you are going to seek loans and investors, they will want you to have skin in the game.
4. Do you have good credit?  Good credit is a must when you start a business.  At some point you are going to want to get a business credit card, a line of credit, or a loan.  Even if you don’t see needing these, you many want to take credit cards, rent equipment or a building, or lease a car.  Your credit rating will affect what you can do and how much it will cost you to do it in the financial and business worlds.
5. Are you going to go into business by yourself or with others?  If you are going into business with others, or thinking about, make sure to check back next week for the blog post things to think about when going into business with others.  It is one of the most important decisions you can make – maybe even more so than who you marry!

So make sure to check back to find out if there are new posts that will help you!

If you have comments about the new look, please let me know!