Tag Archive small business

Important Year-End Tax Implications For Ranchers

The thing about taxes is that you always have to pay them at one point in your life. In fact, at some point it is said that the only thing human beings are sure about is death and taxes. Ranchers make up a fairly large percentage of the human population in the USA. So what are the implications of end of year tax implications to the ranchers in the USA?

The answer to this particular question is somewhat complicated in itself owing to the multifaceted way in which it can be tackled. This is because the implications can be economical, social and fiscal in nature. The magnitude of these implications is also something that needs to be looked at, especially considering that a larger part of the population is just picking itself up from the throes of financial recession. However, in this article, we are going to look at the major financial implications of the end of year tax changes to the average rancher.

The base line of this article is simple; if congress does not act this year to shield the local folk by enacting safety nets with regard to ranching, then the result is that the New Year will not be too good to the ranchers. This is because such a move will have the net effect of raising the rates on virtually all the taxes that tax payers pay, and in this case, ranchers. Such taxes include, but are not limited to income taxes, capital gains, dividends, wages, gifts and estates. Looking at the wholesome situation, most of the tax provisions that expire at the end of the year actually have a direct bearing to the tax amount that is paid by the ranchers and farmers in much of the USA. Most of the farmers and ranchers in the USA are owners of a large estate through which they carry out their businesses. Estate taxes are some of those taxes that are bound to increase if changes are not made. As such, a person paying a 35% tax on his estate may be slapped with a top rate tax of up to 55%. Such increases are bound to increase the cost of business and of the products sourced from these ranches. This is one of the reasons that experts advise businessmen to take care of their estates before the year end. If not, then the net result may be something that is not entirely good.

It is for this particular reason that the end of year tax implications should be put into account not only by the accountants as they crunch the numbers, but also by the government and the legislators as they continue to debate the taxation issue. Initially, there were exemptions to the extent of 10 million dollars; however, with the expiry of the tax breaks, the situation is bound to get a little tighter. This is because only exemptions of up to 1 million will be entertained by the tax man.

 

Turning Over Your Business? 5 Steps To Know

Whenever we start a business we hope to make it big, earn profits and expand a lot. But doing these are not easy. While we all expect the maximum return from our businesses turning over your business requires the implementation of some essential steps. So if you, like many are trying to know and understand the steps that will help you to turn over your business, this article will surely be of much help.

Increasing your turn over

Increasing your turn over is what all business men tries to do but to actually be successful in doing this requires some steps. Here are a few of them:

  1. Lowering costs: Lowering costs of the company will inevitably result into higher turn over. You can lower the expenditure of the company by getting your products on a lower cost from the supplier and by evaluating the business processes and systems to reduce any wastage. Reducing these costs will ensure an increased turn over. You can also try to reduce over heads and introduce a functional method that will help your employees to properly utilise time. The less time they spend on unnecessary activities the more time they will spend on productive works thereby increasing your turnover.
  2.  Asses your employees: Assessing your employees’ performance can also help you increase your turn over.  Motivate your employees to work better to increase profitability, appoint the seniors to hand over easy tasks to the juniors so that they can have more time to work on important projects and reward employees when they have done something good. Creating a proper work schedule and keeping yourself updated with how the work is being carried out, who are responsible for a certain project and the end result will bring out better quality work and increase your turn over.
  3. Plan well: Proper planning and execution helps a lot on increasing your turn over. Having a proper plan will ensure that the work will get done quickly and you will also be able to adapt to changes. You should set short time, well thought plans and see if you can implement them properly. You can also modify your plans as they are implemented to suit your needs.
  4.  Developing customer base: Increased customer base will automatically mean an increased turn over. You can increase you customer base by developing your service and product quality. You should have a market survey to understand the recent trends and offer your products or services according to those trends. Pricing your commodities perfectly so they give good value for money is a great way to expand your client base. Providing after sale services such as training and installations create a good feeling about your company to the customer and this can help attract more customers. You should also develop your customer care services so that they can solve their problems quickly. The more number of satisfied customers the more turnover you will have.
  5. Check your profit margins: Periodical checking of the profit margins of the company will help you identify the pattern of sales and profit from which you can take proper steps to either maintain or to bring the necessary changes to increase turnover. If you find high sales with high profits you should definitely continue implementing the active plan and reward those employees who have made your product successful. However if you find that your profit margins are low but sales are high you can increases your pricing of the product. Many times there is a considerable profit but the sales are low. In such scenario you can think of plans that will help you increase the sales and bring more profit for the company. But if you are faced with low sales and low profits you then need to stop the present action plan and incorporate something new that will help you to hike up the sales and in turn more profits.

 

Hopefully these steps have helped you understand how you can increase your business turn over. It is very important that you remain updated about the strategies being used to generate more sales for a product or service. Since a large customer base can expedite your company turnover you must design your products and services to suit their demand. Since employees are also a big part of the company you should motivate them and have a reward programme to encourage them to increases the profit margin of the company.

Why Your Small Business Need A Website ?

This is a very simple question that I often ask to my clients and end with various answers.  This one simple question allows me to open conversation with my clients and find out the real purpose of their site.  Clients often know what they really want but have a hard time nailing down the reason why do they actually want a website.  Here are some of the most common answers:

  • Provide information about our company
  • Provide our contact information
  • Make it easy for customers to find us
  • Well – my competition has one
  • Want to improve my sales.
  • Want to capture sales leads
  • Want a web presence

All of these are great reasons but before you can answer this question you need to define three things.Who are you ?

  • Who are you ?
  • Who are your customers ?
  • Who you want to be ?

Let’s say you are a Business Attorney and your customers are small businesses who seek advise on small business legal issues and you want to become a leader in your local community when it comes down small business legal issues.  You want to be know as “go to’ person for all small business legal issues.

Now all of you small business owners have a pool of referral you get from your past clients.   This pool is often mistaken for market leadership.  Market leadership means that when average Joe thinks about small business legal issue, he thinks of you.

Truth – this is the key reason why you need a website.  Your website will tell your potential clients who are you and who you want to be.   Moreover, your site will relate directly to your audience and also tell them who they are.

Little confused ? Let me explain.

Small Business Attorney website should clearly explain what is it that he or she does.  Most small business owners get this section right but this is only 20% of the puzzle.    Next peace of pie is to explain who your customers are.  This can be done using “vertical” section in your website.  For example, Attorney should identify 5 or 6 major industries he or she serves.   Attorney may include Real Estate, Medical, Finance, Manufacturing as verticals in website.  Each vertical should include direct reference to common problems attorney solves on regular basis.  This will help potential customers relate to this site.   Use of descriptive images, titles and other material can be very helpful.

Now comes the hard part.  Most small businesses totally ignore the fact that you also need to clearly explain your vision on your website.  Moreover, website should also show how this business is moving towards achieving this goal.

  • Does this attorney goes to local business events ?
  • Does this attorney knows about the local business problems ?
  • Do other people talk about this attorney involvement in community ?

Website can use tools likes video, blog, audio, power point, press release, and newsletter to inform visitors about your engagement with community.   Your customers are your business life line and they deserve to know how you are moving towards your vision.

Now you know the theory behind the existence of your website.   But if you would like some help planning, implementing your online and print marketing than you can contact me directly at 510-709-4030.   My name is Deepak Sharma and I am in charge of help small business grow their business.  I work with Fixtro as IT Manager and available to consult for any IT and Marketing projects.  You can also visit us online at http://www.fixtro.com