Tuesday, January 12, 2010

1. Grow your customer base. Understand your customer demographics and why they buy your products and services. Win clients over with new and diversified products. Offer multiple price points and create packages or customizable plans, which give your customers greater freedom and flexibility.
2. Expand low budget marketing. Promote your business for free on Twitter, and set up a Facebook fan page. Start a blog and comment on other blogs. Take this opportunity to communicate with customers about your business. Go viral.
3. Surround yourself with experts. Get feedback from advisors you trust. Entrepreneurs count on SCORE for free and confidential business mentoring. Use a mentor to test ideas, map a sales plan and focus on success. Ask SCORE for advice and meet with a SCORE mentor.
4. Add ecommerce through a web site. Your business needs a web site to stay competitive. Secure all variations on your company's domain name. Use online forms to encourage interaction. Add a shopping cart to sell your products, not just promote the brand.
5. Free up time to sharpen your focus. Organize for success. Set a time each week to handle routine tasks. Use a PDA to keep track of phone numbers, dates, appointments and meetings.
   
6. Create experience events to draw in customers. Host special events like demonstrations, trunk shows and classes. Offer rebate programs to encourage repeat purchases.
7. Network to build buzz and referrals. Join groups that represent your clients. If you don't have the money to join an association, offer to donate your services. Take advantage of social gatherings, committee appointments, membership meetings and networking events.
   
8. Track your cash flow. The one thing all businesses need is cash. Ensure that you collect receivables within 30 days. Monitor invoices. Pay early when you get a discount. Always keep an eye on your cash. Prepare cash flow reports so you understand your cash needs.
9. Plan for financing success. Even if you're in business, you should have a business plan ready to submit to potential lenders. Know how additional funding will help you grow your business, and demonstrate your ability to re-pay the loan.
10. Consider an LLC. As a sole proprietor, you are personally liable for the debts and liabilities of your business. A corporation or limited liability corporation (LLC) protects your personal assets and property. You can register your business as a separate legal entity.

Ten Facts

About Claiming Donations Made to Haiti 

If you are donating to charities providing earthquake relief in Haiti, you may be able to claim those donations on your 2009 tax return. Here are 10 important facts the Internal Revenue Service wants you to know about this special provision.

1.     A new law allows you to claim donations for Haitian relief on your 2009 tax return, which you will be filing this year.

2.     The contributions must be made specifically for the relief of victims in areas affected by the Jan. 12 earthquake in Haiti.

3.     To be eligible for a deduction on the 2009 tax return, donations must be made after Jan. 11, 2010 and before March 1, 2010.

4.     In order to be deductible, contributions must be made to qualified charities and can not be designated for the benefit of specific individuals or families.

5.     The new law applies only to cash contributions.

6.     Cash contributions made by text message, check, credit card or debit card may be claimed on your federal tax return.

7.     You must itemize your deductions in order to claim these donations on your tax return.

8.     You have the option of deducting these contributions on either your 2009 or 2010 tax return, but not both.

9.     Contributions made to foreign organizations generally are not deductible. You can find out more about organizations helping Haitian earthquake victims from agencies such as the U.S. Agency for International Development ( www.usaid.gov).

10.   Federal law requires that you keep a record of any deductible donations you make. For donations by text message, a telephone bill will meet the record-keeping requirement if it shows the name of the organization receiving your donation, the date of the contribution, and the amount given. For cash contributions made by other means, be sure to keep a bank record, such as a cancelled check or a receipt from the charity. Receipts should show the name of the charity, the date and amount of the contribution.

For more information see IRS Publication 526, Charitable Contributions and Publication 3833 , Disaster Relief: Providing Assistance through Charitable Organizations. To determine if an organization is a qualified charity visit IRS.gov, keyword "Search for Charities". Note that some organizations, such as churches or governments, may be qualified even though they are not listed on IRS.gov.

Links:

• IR-2010-12, Haiti Relief Donations Qualify For Immediate Tax Relief
• Search for Charities