Ending the Year on a Positive Note - Spreety.com -- Happy New Year!

Happy New Year!Finally Something Positive About the Recession - Spreety.com

To date, I have seen very little positive actions come out of this recession
and a lot of people are in what Maslow refers to as the Safety Level - Step 2 (http://en.wikipedia.org/wiki/Maslow's_hierarchy_of_needs
<http://en.wikipedia.org/wiki/Maslow%27s_hierarchy_of_needs> ). Many are in Step 1 - Basics.

They say that necessity is the Mother of Invention. We all hear, read and
some of us are experiencing this state - managing to necessity. Being at the second level of a five level hierarchy is not a fun place to be. Many are being sensible and keeping expenses under control, eliminating unnecessary costs, adapting to new ways of living, etc. One way that they are doing this is by limiting entertainment expense by watching TV, sports and movies at home - many on the computer.


One good thing that I have seen arise from the ash of this rough recession is spreety.com. It is my understanding that the co-founders started this for themselves and their family. It has now grown to cover the new hit show "Fairy Job Mother", "Glee", "First 48", " Top Model" and networks like "A&E", "HBO", "NBA", "NCAA", "QVC", "MTV", "Nick", and many more. Unlike most computer TV options, there is not a long waiting time before the shows are available and as computer screens are becoming larger and with greater resolution, this is a savvy option to a $100 - $200 monthly cable bill. In addition, since programs can be replayed, it negates the reason for a DVR
-- more savings.

This concept makes me ask two questions:

1.   Will we see more innovations like spreety.com birthed during the
recession?

2.   Will your next "TV" be a computer with a large high resolution screen?

With hope for the human condition and the support of necessity breeding
invention, I raise my glass to spreety.com and others from whom great ideas will come!

Time to Reflect on 2010 - Feel Prepared for 2011 – Are You Ready?

Today is a short day for most businesses in terms of operating hours. Most of you let your staff go home early today and give them tomorrow off. – Yeah for them.

The bad news is that the time clock never stops for most leaders, C-Level Execs, GMs and CEOs. So while you can pat yourself on the back for being a great boss and giving staff (much needed) time to recharge so they can come back and service your business — unfortunately, for you, my friend, it is CRUNCH TIME.

Those being said, take tomorrow—especially the eve --to celebrate that you are still kickin’! I’m not going to post the numbers, but you know, a lot of your brethren did not make it. SO CELEBRATE! And, if you are into it, or your social or family circle is into it, enjoy football games on New Year’s Day. Yell, scream, cheer and get it all out in the all American way--- the Rose Bowl ;)

And then, be thankful that the calendar is in your favor and you can still focus, intensely, on your business before heading back to work on Monday. Many of your staff will start off by coming in groggy, but as I warned you earlier, you should have prepared them to come in on the first work day of 2011 ready to kick butt. If you have to “remind’ them or feel it is a good faith measure, call a first morning meeting with critical staff and GET THEM MOTIVATED. Now, this isn’t license to KA, it is a license to motivate. Example: Kevin (in charge of logistics) your goal is to have expenses reduced by X % by the end of Q1 and/or profitability up by X%. Sally, (in charge of client service) your goal is to increase billable hours by X % by the end of Q1 and so on…..Then, make yourself available THE FIRST WEEK as a consultant to them to figure out how to accomplish their goals (Hopefully, they took you seriously earlier and have a plan). Then have weekly (or daily if someone gets off track) meetings to hopefully celebrate everyone’s progress. And PLEASE reward them weekly if they succeed. It is such a low cost yet effective method to achieve results and so many people just disregard it or think that it is their job anyway so why reward them? Let me give you a simple example why: I took a group of ho-hum lead generators who were well paid and held daily “recognition” – not beat up sessions—and increased quality and quantity lead production by 400% in three months. And when one of the lead clients took one of those leads and turned it into a $1 million + sale, our contract with that client doubled and the staff felt great.

So, my main message to you on this day, 2 days before the New Year is to celebrate survival – until Sunday morning, then get ready to lead with strength and provide mentoring on Monday. Whether you believe you should have to help staff succeed or not, DO IT. After all, YOU are the leader for a reason – so share your knowledge with others who need it so that in the end, you succeed and your clients succeed  -- and you live another day.  

Happy  New Year! ~ Mary

New Budgets Start For Many in 3 Days - Is That a Good or Bad Thing?

Make Your List (Budget) and Check It Twice -

No. I’m not talking about your shopping list! (Although, if you haven't already - be sure to recognize those closest to you and show them your appreciation for all that they do. It's not too late! And even the smallest recognition gift can mean the world to those who work so hard for the success of your company.)

I’m talking about your P&L. I know it is a dreaded word and an even more dreaded process, but take a look at your results to date and more importantly, your projections. As you look at your projections, ask yourself these questions:

·         Are these realistic? Or was I bullied into these numbers? If they are realistic – great. If you were bullied into high projections, use this time to pull out all the stops, include everyone who could get you there (to those numbers) and come up with a solid plan to hit them.

·         Do I have the staff to hit my projections? If the answer is no, get hiring IMMEDIATELY. If you have not built in a budget for additional staff, well shame on you! Whether you need them or not, always ask for help. Let me repeat that....Whether you need them or not, always ask for help. If you didn’t you are in a very difficult situation and I have only seen three solutions to this problem and not all of them are pretty:

1.       Increase your projections to cover the cost of additional staff –ouch, right?!

2.       Review your existing staff and look for an opportunity to restructure and lay off 1, 1 ½ or 2 people in non revenue producing areas and replace them with new positions that are revenue producing with a combined payroll cost to the person(s) you laid off.  That one hurt even to write, but if you don’t ask for help, up front, very difficult choices need to be made. (You can try commission only positions but these don’t always produce the best candidates, but in this economy, you might get lucky.)

3.       Put your tail between your legs and fess up to your boss that you screwed up and didn’t include the necessary costs (human or other resources) to achieve your goal. This could be very risky as the boss may have been the person who forced the numbers on you in the first place. It could be suicide. On the other hand, you know your boss (or should) and he/she might appreciate the frankness and vision and time to remedy the problem versus finding out later that you just haven’t met your goal. I can’t recommend this strategy to you as only you know if your boss would be receptive to such honesty. But, I can say, go in with a solid plan justifying the additional resources and what their specific contributions will be in achieving your goals. Good luck if you choose this one—and let me know how it goes if you do.

Don't make the mistake of starting off on the wrong or unstable or scary foot. Start off with the truth and a solid plan to get there. The truth may hurt in the short run--but when you hit your goals-- everyone will forget that you asked for help up front. *Hint* If yo get htehelp and hot your numbers, send a personal thank you note to your boss for making it possible. Alos thank your tema -- obvious.

Get out the excel sheet, calculator, forecst sheets, etc., etc., and get real. And then write a plan that will really hit the target.

I am a dynamo at this exercise so if I can help, PLEASE ASK! it would be my pleasure and honor to assist you in making a realistic polan that you feel confident. I can also help you too present your plan and rationale for staff additions, if you need help.

GOOD LUCK and get crackin'!

4 days and ticking until the ned of the Tax Year -- Ready?

  

This is such a complex area that if you don't have help doing it and have plenty of money and don't care if you pay too much in taxes, then don't read this.

That's not most business people. Every dollar saved is a dollar they can re-invest in their business or report to their stock holders or investors. So in that case, GET A GOOD TAX PROFESSIONAL!

Just because you have a bookkeeper, doesn't mean you are ok. I cannot tell you how many situations I have gone into where a business "thinks" they are covered and I bring in experts and we find large and sometimes small amounts of money that they would not have paid in taxes had we not come in.

Conversely, I've been in situations with highly paid CFOs or independent CPAs who got "just enough" of a chunk of return annually that everyone was complacent and um er--fat and happy. Then, when I was called in for an overall "health check" (in all areas) , when we got to the finances, my independent people found everything from borderline ethical practices to good tax results for the client but horrid advice and practice for the longevity of the company -- and worse. So be sure your Financial Team is in sync and cares about you and your business, holistically.

My main point in this is that this is the perfect time to take your taxes seriously. Consider a second opinion, consider and budget for a health check of your entire organization, including your taxes, operations, inventory management, HR practice, marketing, et al. It will pay for itself over and over again and a good, honest and objective person (like me ;)!) might tell you things you don't like hearing but they want what is best for your business to succeed -- so listen.

Below are some tax tips sourced from many places and people. The advice may or may not apply to your situation but are worth reviewing with your tax person (or second opinion). I must disclaim that I AM NOT a tax expert. I bring in those guns when I'm on an assignment to ensure that my clients are well taken care of.

With that being said, here are some ideas -- again some may apply to you ---some may not --and laws are constantly changing and country laws differ dramatically.

·         No-income-tax states - Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. These have lured the likes of Tiger Woods, who reportedly moved to Florida simply to avoid additional tax. While a move may seem like a huge commitment, a move across the border from Oregon to Washington, for example, could mean more than 10% of your pay stays in your wallet.

·         Consider incorporating in Delaware – discuss this with your tax accountant

       •This one may seem obvious but it is why I STRONGLY recommend that you record your expenses. Claim work related expenses - If you are self-employed, you can deduct allowable expenses from your gross profits before paying tax on the remaining amount. If you work from home you can also claim for a share of heating and lighting and other bills, such as water tax and mortgage interest.

• Give to charity – Not only in this time of need is it the right thing to do but it can be to your advantage. If you review your finances now with your tax professional, they can guide you as to the amount that would benefit you and you still have time to do it! Also, in some countries, there are extra tax advantages for age groups.

• Avoid tax on savings - In some areas, a non-tax payer (like a minor) or an aged person whose income is below the tax threshold, can fill up out a proper form to get interest paid free of tax. Also discuss other tax free savings plans with your banker.

• If you are recently divorced or an empty nester, consider taking on a renter. In some areas, if the annual rent is under a certain amount, you need not declare your income.

• Make a salary sacrifice. - You can voluntarily agree to a salary sacrifice. This tactic means that you want to be paid less but would take the compensation for this by additional contributions to your pension or by tax-free, non-cash benefits, such as childcare vouchers etc. Your tax and national insurance (NI) bill will drop as your gross income is reduced.

• Pension payments - You are eligible to get tax relief by paying into a pension option. Big savings can be made by those who pay income tax at 40 percent during their working lives and then pay tax at a lower rate after they retire.

• Carry forward losses - If you are self-employed you can cut the amount of tax you need to pay by carrying forward losses from previous years. Check on this. Some areas have a longer waiting period than one year.

• Child trust fund - Interest on money in a CTF is tax-free.

• Assets transfer - If a married couple, or civil partners, pay tax at different rates, they can cut their tax bill by transferring ownership of savings and investments.

• Write off anything that helps you make money. Here are a few examples:

1. Transportation expenses (car, fuel, repairs, rentals etc).

2. Office expenses (papers, advertising, staples, books etc).

3. Furniture (filing cabinets, desks, tables etc).

4. Computers, phones, cell phones & other electronic gadgets.

5. Special tools or devices needed.

6. Special equipment.

7. Apparel or uniforms.

8. Food or entertainment.

This list can go on & on if you are a business owner that has spent any expense to incur an income. If you are an employee then you may not be able to write off anything unless let's say you own a home based business. An employee that owns a home based business can then write off expenses but it would be best to consult a professional accountant before attempting to write off anything.

To add some pithiness to this serious topic, here is a short and amusing list of things that some people have written off in the past:

1. Breast implants.

2. Animal depreciation.

3. Cat food.

4. Body oil.

5. Clarinet lessons.

6. Dentures.

Think Taxes- get your ducks in a row before the end of the year. Even if you report quarterly, take these ideas and discuss them with your tax professional this exercise will empower you to get on top of it.  

Good luck!

April 15 is months away - but December 31 is Days Away - Hint: Taxes!

If you haven't already, it is time to go full blown on your taxes. It isn't a jog to December 31 --it is a sprint!

Tomorrow I will outline some possible ideas to help you pay less in taxes....but until then....especially for those of you in small business who do your own bookkeeping..... start recording everything NOW!

Then, make a New Year's Resolution to keep up with it EVERY DAY...Yes....I said EVERY DAY.

This not only saves you the pain staking chore of doing it all year end...but you will see, daily, where your money is going. You will also begin to see patterns and opportunities for more tax saving opportunities.

So..until tomorrow's list of possible tax saving ideas---get cracking and get your expenses documented...NOW!

See you tomorrow.

Assignment for Today and (hopefully) Yesterday

This is simple.

But important.

I hope you had a beautiful day yesterday, enjoyed friends and family - that was your assignment for yesterday!

Today your assignment is also simple.

But important.

Take today to recharge your batteries as you prepare for the sprint to the finish.

Read one of the books you received (or bought for your self), watch a funny movie, take a nap, eat healthy (at least healthier than you did yesterday;) !), or do whatever you enjoy and include others --or not. Do what makes you happy.

Tomorrow wwe'll start the sprint --so rest up!

8 Short Days Until 2011 – Enjoy, Reward and Praise – What a Great Day!

I know this is starting to sound like an HR blog (!) but I promise you that after the 25^th, we are going to get into the “heavies” i.e.; taxes, Q4 results and what it means to your Q1 Plans, the establishment of actions to keep your finger on the pulse of your competitors, your bottom line, your realistic (or not) projections and much more.

If you are in an industry where you are open all day long today, then be the joyful leader and regardless of issues you may have present a cheerful leadership enthusiasm  to all – even the guy/gal whose performance makes your blood boil---deal with it later. It will be infectious to your employees and customers (if you interact with customers today). Remember the old saying that the fish rots from the head down, well enthusiasm is even more powerful and contagious when it germinates from the top.  

Enjoy the day and take on a fun role - after all – it has been a tough year! By making people feel good,  they will do likewise. If you recall, Catherine Ryan Hyde, author of Pay It Forward showed us what a difference each of us can make with this powerful concept in a book and then later a movie.

 But ... and a VERY BIG BUT here is …..if it is not in you to be this way - DON’T do it. Simply go around and shake each and every employee’s hand, look them in the eyes and thank them for their service throughout the year but give them a special thank you as you acknowledge that they would much rather be at home with their loved ones. Tell them you deeply appreciate their commitment. Then, add an important message: ask them if they would please extend your gratitude to their loved ones for tolerating their absence today. You will be gob-smacked with the looks that you will receive and don’t be surprised if you get a note of appreciation from an employee’s loved one or a mention by an employee’s loved one at the next family oriented picnic or holiday party. It means a lot to employees’ loved ones that you know of their sacrifice too. (But again, if it is NOT YOU – don’t do it…it will backfire.)

So enough of what some might call the “soft stuff”. After tomorrow, we tackle some hard core business issues that can not only drastically affect your 2010 results but can impact your critical start to 2011. Now this is not an apology for covering the afore mentioned topics. They are important to a business’ success, but there are also some more traditional topics that need to be covered before we end the year.

I will pop in tomorrow shortly.  

Don’t forget to set out cookies for Santa and carrots for reindeers tonight ;)