Mazon Associates, Inc.
 
 
Spring 2013
Building Bridges Newsletter
Supporting businesses by lending good money to good businesses!
 
Greetings!

We hope that the beginning of 2013 finds you well and ready to achieve exciting financial goals in your business.  With companies reporting slower payment terms, Mazon Associates' is ready to help you with your business needs.

 

We have published our Building Bridges newsletter monthly since May 2008 and it is read by over 1,000 businesses and individuals.  We feel it is time for a change to a quarterly newsletter featuring the four seasons of the year:  Spring (February, March, April); Summer (May, June, July); Fall (August, September, October); and Winter (November, December, January).  We will offer the same format of informative, educational and humorous content that keeps our subscribers looking forward to upcoming issues.  Although we provide occasional links to websites, we carry no paid advertising and your subscription is always provided free.

 

We hope you enjoy our new format, and always welcome your feedback!

 

Happy Spring!

Lisa Hultz

 

  

Featured Entrepreneur:  Thomas Alva Edison
  
Young Edison
Thomas Edison is generally recognized as the inventor of the incandescent light bulb in 1879 -- but was he?

 

Born on February 11, 1847 in Milan, Ohio, Thomas Edison grew up in Port Huron, Michigan. He was the seventh and last child of Samuel and Nancy Edison. In school, young Thomas's mind often wandered and his teacher said he was muddled and confused, which ended his three months of official schooling, whereby his mother homeschooled him. The family was forced to move to Port Huron, Michigan in 1854 when the railroad bypassed Milan. As a teenager, he sold candy, newspapers and vegetables to supplement his income. This began his long streak of entrepreneurial ventures, which eventually led him to found 14 companies, including General Electric. Thomas credited his mother's guidance and teaching for his success as an American inventor and businessman. Over his long career, he developed many devices that greatly influenced life around the world, including the photograph, the motion picture camera, and the electric light bulb.

 

On December 25, 1871, Thomas (age 24) married 16-year-old Mary Stilwell (an employee at one of his shops). Together, they had three children. Mary died on August 9, 1884, possibly from a brain tumor. On February 24, 1886, Thomas (then 39) married 20-year-old Mina Miller, the daughter of an inventor. They also had three children.

 

Thomas began his career as an inventor in the mid-1870s in Newark, New Jersey, but the invention which first gained him notice was the phonograph in 1877. His major innovation and his first big financial success was the first industrial research lab built in Menlo Park, NJ in 1876, which was built with the money from the sale of his quadruplex telegraph to Western Union for $10,000 ($202,000 in today's economy). Thomas Edison was legally attributed with most of the inventions produced at the lab, though his many employees carried out research and development under his hard-driving direction. Nearly all of Thomas's patents were utility patents, which were protected for a 17-year period and included inventions or processes that were electrical, mechanical or chemical in nature. About a dozen were design patents, which protect an ornamental design for up to 14 years. As in most patents, the inventions he described were improvements over prior art, as was the case with the incandescent light bulb. Thomas did not invent the first electric light bulb, but instead invented the first commercially practical incandescent light.

 

Edison bulbThe story of the light bulb started almost seventy years earlier when, in 1806, Humphrey Davy demonstrated a powerful electric lamp to the Royal Society (London). The lamp produced its illumination by creating a blinding electric spark (similar to that of a welding torch) between two charcoal rods, known as an "arc lamp." It was simply too bright to be used in homes and most businesses, and needed a tremendous source of power, quickly draining the batteries which powered the lamp. As time went on, electric generators were invented for the arc lamp's various uses (lighthouses, searchlights, etc.). Building on the contributions of previous developers, Thomas made significant improvements to the idea of incandescent light making it more compatible for general use, and concentrating on commercial applications. He was able to sell the concept to homes and businesses by mass-producing relatively long-lasting (40-hour) light bulbs and creating a complete system for the generation and distribution of electricity, forming the Edison Electric Light Company (New York City) in 1878. He was granted a patent for the incandescent light bulb on January 27, 1880. On September 4, 1882, Thomas switched on his Pearl Street generating station's electrical power distribution system, which provided 110 volts direct current (DC) to 59 customers in lower Manhattan. On January 19, 1883, the first standardized incandescent electric lighting system employing overhead wires began service in Roselle, NJ. By 1887, there were 121 Edison power stations in the United States delivering DC electricity to customers.

 

Elderly EdisonThomas was active in business right up to the end. He was the most prolific inventor in history, holding 1,093 U.S. patents in his name, as well as many patents in the United Kingdom, France and Germany. He is credited with numerous inventions that contributed to mass communication and, in particular, telecommunications. He originated the concept and implementation of electric-power generation and distribution to homes, businesses, and factories -- a crucial development in the modern industrialized world. Thomas died of complications of diabetes on October 18, 1931 at his home in West Orange, NJ which he had purchased in 1886 as a wedding gift for Mina. He is buried behind their home. Mina died in 1947. Three of his sons (William, Charles and Theodore) followed in his footsteps and became inventors -- Theodore Edison held over 80 patents of his own.
Phasing Out the Incandescent Light Bulb
  
Light bulb
After a 130-year history of lighting up the world, the incandescent light bulb is being phased out of existence with the passing of the Energy Independence and Security Act of 2007, which mandates that light bulbs have 25% greater efficiency.  These bulbs are to be replaced with more energy-efficient compact florescent bulbs (CFL, the "squiggly" bulbs), halogen bulbs and LED (light emitting diode) bulbs.  In October 2012, 100-watt bulbs started disappearing from store shelves, and this year 75-Halogen bulb watt bulbs will be history.  Stores will be eliminating 40-watt and 60-watt light bulbs in 2014.  Halogen bulbs burn about 30% more efficiently than incandescent bulbs, are more versatile and last twice as long as incandescents; CFL bulbs are about 75% more efficient than halogens and can last up to ten times longer; LEDs (the most expensive) will last over 20 years.  Eventually, all household lighting will be converted to LED where 80% of the energy is converted directly into making light without the heat waste, resulting in lower power bills for consumers.

 

LED bulbSeveral incandescent bulbs are currently exempt from extinction but sales are being monitored for increased demand -- these bulbs will lose exempt status if sales increase year-after-year.  Exempt bulbs are: 3-Ways, 150-watt and 200-watt bulbs, 40-watt appliance bulbs, black lights, yellow bug lights, infrared lamps and plant grow lights, silver bowl bulbs coated with a reflective coating on their tops, outdoor post lights less than 100-watts and nightlights.  The law does not apply to candelabra-base bulbs if they burn less than 60-watts.  Manufacturers are racing to reduce LED costs by 2020 through mass production and quality control systems; the 2007 bill that created the current lighting revolution calls for even tougher efficiency standards after 2020.

 

squiggly bulbThe last major General Electric factory in the USA that made incandescent light bulbs closed their doors in September 2010 (after 100-watt bulbs had already gone to some stores), putting 200 people out of work.  Controversy continues over the CFL bulbs, most of which are made in China and contain dangerous mercury.  The Environmental Protection Agency has established strict disposal handling instructions for CFL bulbs.
  
Numbers in the News

 

Bad Dept
The national debt situation in the United States has escalated significantly since the year 2000.  Although the U.S. has had a national debt since its inception, the amount of debt in relation to the Gross National Product (GNP) has only grown significantly in the modern era.  The national debt has more than doubled just since the year 2000, from $5.629 trillion under George W. Bush to $13.7 trillion under Barack Obama.

 

Consumer debt has reached epidemic proportions.  Financial Freedom International, Inc. notes that as of 2011, U.S. consumer debt was $6.7 trillion.  This was up from just $731 billion in 1992.  Over 60 percent of American households have credit card debt in excess of $11,000.  The amount paid out in late fees to credit card companies has nearly quadrupled since 1996.  Consumers are protected by the Federal Trade Commission from unfair debt collection practices of unscrupulous lenders and collectors; debtors are protected by the Fair Debt Collection Practices Act.  Nearly all types of household debt (credit cards, mortgage debt, medical bills and auto loans) are covered by this act -- the exception to this rule are debts people may have incurred as a result of running a business.

 

Perhaps your business has sold products or services to another business that has either refused to pay you for some reason or has closed up and gone belly-up.  What recourse does a business have to collect a debt from another business when you have exhausted all collection attempts?  Your bona fide business bad debt (if accrued as income) can be deducted as a bad debt expense.  The IRS allows you to deduct any actual incurred expenses (supplies, employee wages, mileage) relating to the debt, but not the profit you would have made nor the time you personally invested -- in general, your time is worth nothing to the IRS.  A tax lawyer may recommend filing a Form 1099-MISC for unrecoverable receivables.  Additionally, you may report the business and/or the owner to the Better Business Bureau where the business is located, Dunn & Bradstreet, and also to the three major credit reporting agencies (Experian, TransUnion, Equifax).  Membership is required in the credit reporting agencies before you are allowed to submit bad debt on a non-paying individual or business/business owner.

  
How long must I be in business to become a Mazon client?
  
Dollar Sign
Mazon Associates specializes in helping growing businesses as well as start-up companies with accounts receivable financing.  We do not require that you be in business for any specific length of time to participate in our factoring services.  If you would like to find out more about our services for your business and/or apply for an account with Mazon Associates, please phone us at 972-554-6967 (toll-free 800-442-2740 or visit our website at www.Mazon.com.
  
But . . . it's not my job!

 

Not My Job There was an important job to be done and
Everybody was sure that Somebody would do it.
Anybody could have done it, but Nobody did it.
Somebody got angry about that because it was Everybody's job.
Everybody thought that Anybody could do it, but Nobody realized that
Everybody wouldn't do it.
It ended up that Everybody blamed Somebody when
Nobody did what Anybody could have done.

  

IRS Notes for Taxpayers

 

Tax form 1040
Effective January 2, 2013, the standard mileage rates increased 1 cent per mile to:  56.5 cents per mile for business miles; 24 cents per mile for medical or moving purposes; 14 cents per mile driven in service of charitable organizations.

 

For employees who claimed "exempt" from withholding in 2012 but did not submitt an exempt 2013 W-4, February 15, 2013 is the date to begin withholding based on the most recent, valid, non-exempt W-4 from that employee.  If you do not have one, withhold based on a marital status of "single" and zero withholding allowances.

 

February 18, 2013 is the deadline to file paper Forms W-2 (Copy A) and W-3 with the Social Security Administration.  If you file electronically, the deadline for submitting these forms is extended to April 1, 2013.

 

Following the January tax law changes made by Congress under the American Taxpayer Relief Act (ATRA), the IRS announced on January 9th its plans to open the 2013 filing season and begin processing individual income tax returns by January 30th after updating forms and completing programming and testing of its processing systems, which will reflect the bulk of the late tax law changes enacted Jan. 2.  This means that the vast majority of tax filers (more than 120 million households) should be able to start filing tax returns starting Jan. 30.  The remaining households will be able to start filing in late February or into March because of the need for more extensive form and processing systems changes.  This group includes people claiming residential energy credits, depreciation of property or general business credits.  Most of those in this group file more complex tax returns and typically file closer to the April 15 or obtain an extension.
  
CDC Expanded Hepatitis C Testing Recommendations

 

Hepititis C
To identify more hidden infections, provide prompt and appropriate care and treatment, and avoid tens of thousands of hepatitis C-related illnesses and deaths, the CDC now recommends that all U.S. baby boomers get a one-time test for the hepatitis C virus.

 

·         Hepatitis C is an unrecognized health crisis in the United States. This life-threatening infection affects an estimated 3.2 million Americans, most of whom are "baby boomers" (those born from 1945 through 1965). One in 30 baby boomers has been infected with hepatitis C, and most don't know it. Hepatitis C causes serious liver diseases, including liver cancer (the fastest-rising cause of cancer-related deaths) and is the leading cause of liver transplants in the United States.

 

·         More than 15,000 Americans, most of them baby boomers, die each year from hepatitis C-related illness, such as cirrhosis and liver cancer, and deaths have been increasing steadily for more than a decade and are projected to grow significantly in coming years.

 

·         The CDC estimates one-time hepatitis C testing of baby boomers could identify more than 800,000 additional people with the virus. And with newly available therapies that can cure up to 75 percent of infections, expanded testing -- along with linkage to appropriate care and treatment -- would prevent the costly consequences of liver cancer and other chronic liver diseases and could save more than 120,000 lives.

 

Testing is cost-effective.  One-time hepatitis C screening, with treatment for those found to be infected, is comparable in cost-effectiveness to other routine preventive health services, such as screening for cervical cancer or cholesterol screening and treatment. (CDC works 24/7 saving lives and protecting people from health threats to have a more secure nation. Whether these threats are chronic or acute, manmade or natural, human error or deliberate attack, global or domestic, the CDC is the U.S. health protection agency.)

  
Product Recalls

 

Recall
The following recent recalls were issued by the U.S. Consumer Product Safety Commission.  More details can be found at www.cpsc.gov.  To report a dangerous product or a product-related injury, call CPSC's hotline at 800-638-2772.

 

Power Supply Transformers (Mfg: HEICO Lighting/EMD Technologies, Montreal, Quebec, Canada); WFT-E7A Wireless File Transmitter (Imp: Canon USA, Lake Success, NY); Catalina Outdoor Fireplace (Imp: Nantucket Distributing, Middleboro, MA); Top-Loading Washing Machines (Mfg. LG Electronics, South Korea, sold at Sears); Mattresses and Mattresses with Foundations (Mfg: American Mattress Manufacturing, Atlanta GA); Classic by Easy-Rest Foam Core Mattresses (Imp: Easy-Rest, Portland, OR); Stepladder and Stepstool Combination (Imp: Wing Enterprises, Springville, UT); Low Lead Ball Valve/Shut-Off Valves (Mfg: Fu San Machinery, Taiwan; Imp/Dist: Aqualine, Corona, CA; AY McDonald Manufacturing, Dubuque, IA; FNW, Portland, OR; Hodes, Kansas City, MO; Legend, Auburn Hills, MI; Leonard Valve, Cranston, RI; Mueller, Memphis TN); RIGID Coil Roofing Nailer and RIGID Clipped Head Framing Nailer (Imp: One World Technologies, Anderson, SC); Jotul and Scan Gas Fireplace Inserts (Mfg: Jotul North America, Gorham, ME); Homer's All-Purpose Bucket Mug (Mfg: Mr. Christmas, Hong Kong; sold exclusively at Home Depot stores).

  
Spring 2013 Holidays and Events

 

Calendar
Feb. 1: National Freedom Day; Feb. 2: Groundhog Day; Feb. 3: Super Bowl Sunday; Feb. 8: Boy Scout Day; Feb. 12: Fat Tuesday/Mardi Gras; Feb. 14: Valentine's Day; Feb. 18: Presidents Day; Mar. 2: Read Across America Day; Mar. 10: Daylight Savings Time Begins; Mar. 17: St. Patricks Day; Mar. 20: First Day of Spring; Mar. 31: Easter Sunday; Apr. 1: April Fool's Day; Apr. 15: Income Taxes Due; Apr. 22: Earth Day; Apr. 24; Administrative Professionals Day.  February is Black History Month, American Heart Month, National Dental Month and Chocolate Lover's Month.  March is National Nutrition Month. April is Cancer Control Month and Alcohol Awareness Month.

 

Mazon Office Holidays:  We will be closed Monday, Feb. 18th in observance of Presidents Day.  Normal business hours will resume on Tuesday, Feb. 19th (8:30am to 5:00pm). You may submit your invoices during our closed hours via fax, e-mail or drop-slot to be processed on Tuesday.

  
Mardi Gras (Fat Tuesday), February 12th

 

Mardi Gras
The origins of Mardi Gras can be traced to medieval Europe, passing through Italy in the 17th and 18th centuries to the French House of the Bourbons. From here, the traditional revelry of "Boeuf Gras," (or fatted calf) followed France to her colonies.  On March 2, 1699, French-Canadian explorer Jean Baptiste Le Moyne Sieur de Bienville arrived at a plot of ground 60 miles directly south of New Orleans, naming it "Pointe du Mardi Gras" when his men realized it was the eve of that festive holiday. Bienville also established "Fort Louis de la Louisiane" (which is now Mobile) in 1702. In 1703, the tiny settlement of Fort Louis de la Mobile celebrated America's very first Mardi Gras.

 

In 1718, New Orleans was established by Bienville. By the 1730s, Mardi Gras was celebrated openly there, but not with the parades we know today. In the early 1740s, Louisiana's governor, the Marquis de Vaudreuil, established elegant society balls -- the model for the New Orleans Mardi Gras balls of today.  By the late 1830s, New Orleans held street processions of maskers with carriages and horseback riders to celebrate Mardi Gras. Dazzling gaslight torches, or "flambeaux," lit the way for the paraders, and lent each event an exciting air of romance and festivity.  In 1873, floats and magnificent paper-mache animal costumes began to be constructed entirely in New Orleans instead of France. In 1875, Governor Warmoth signed the "Mardi Gras Act," making Fat Tuesday a legal holiday in Louisiana.  As all of these parade organizations are completely funded by their members, New Orleanians call it the "Greatest Free Show on Earth!" 

 

 

Wellness Improves Productivity

 

Sick Office
Studies show that promoting wellness in the workplace can reduce absenteeism, increase productivity and lower health care premiums.  So, help your employees help you by providing information on stress, anti-smoking or obesity programs; sponsor an athletic event; or offer healthy snack options in your lunchroom.
  
(Source:  www.Manta.com)

 

Spring Business Book Pick

 

BookDo Nothing! How to Stop Overmanaging and Become a Great Leader, by J. Keith Murnighan, published by Portfolio/Penguin in June 14, 2012.  Hardcover, 240 pages.  ISBN-10: 1591845300; ISBN-13: 978-1591845300.

Imagine you've just come back to work after a two-week vacation during which you actually relaxed, without calling in or checking e-mail. You discover that there are no pressing issues and that, on the contrary, your team scored a big new customer and fixed a nagging problem during your absence. No red flags or fires to put out.

Sadly, for most leaders this scenario is only a dream. They constantly check on what's happen­ing because they expect the worst (and usually get it). But Keith Murnighan shows that not only is "do nothing" leadership possible, it is also far more effective than doing too much.

Great leaders don't work; they facilitate and orchestrate. They think of great strategies and help others implement them. They spend their time preparing for the future. They take a comprehensive view of their terrain while also noticing key details so they can confidently choose the right forks in the road.

In other words, great leaders don't do any­thing -- except think, make key decisions, help people do their jobs better, and add a touch of organizational control to make sure the final recipes come out okay. In sharp contrast, most leaders are too busy actually working to do these things -- and their teams suffer as a result.

Do Nothing's practical strategies and true stories will show you how to set high expec­tations for your team and watch it rise to the challenge. It will help you establish a healthier culture by trusting people more than they expect to be trusted. And it will help you overcome your natural tendencies toward micromanagement so you can let people do their jobs -- even when you know you could do their jobs better.  (Review by Amazon.com)

Thoughtful Thoughts

 

Whisper of God
If you look back at the times that you worked hard to achieve something or get somewhere you wanted to go, you will find there were certain unexpected things that happened that helped you along the way to success:  a stranger lending a hand, a door being opened, a roadblock being removed.  These unexplained events become explainable when you realize it was the hand of God moving through your life helping you achieve success.  Take some time to celebrate your victories and be thankful for His help.

   

-- Elmer Laydon (www.TheWhisperofGod.com)
 
Tax Return

 

Hammers
There was a man who made his tax returns promptly and properly, only to find that he owed the IRS $3,407.  He packaged up his payment and included this letter:

 

Dear IRS,

Enclosed is my tax return and payment.  Please take note of the attached article from the USA Today newspaper.  In the article, you will see that the Pentagon is paying $171.50 for hammers and NASA has paid $600 for a toilet seat.

Please find enclosed four toilet seats (valued at $2,400) and six hammers (valued at $1,029).  This brings my total payment to $3,429.  Please note the overpayment of $22 and apply it to the "Presidential Election Fund," as noted on my return.  Might I suggest you then send the above mentioned fund a 1.5 inch screw (see attached article -- HUD paid $22 for a 1.5 inch Phillips Head Screw).

It has been a pleasure to pay my tax bill this year, and I look forward to paying it again next year.  I have just read an article about the Pentagon and screwdrivers.

Sincerely,

Disgruntled of Oklahoma

Did You Know?

 

Potash
George Washington signed the First United States Patent Grant on July 31, 1790, and the patent examiner was Thomas Jefferson. The first U.S. patent ever granted went to American inventor Samuel Hopkins of Pittsford, Vermont for a new method of making potash, an industrial chemical used in making soap, glass, fertilizers and gunpowder.  (Source: Mary Bellis, About.com Inventors Guide)
  
If you enjoyed this issue of our Building Bridges Newsletter, please forward it to others.
  
Sincerely,
 
Lisa Hultz

Mazon Associates, Inc.

In This Issue
Entrepreneur
Phasing Out Bulbs
Numbers in the News
Factoring FAQ
Not My Job
IRS Notes
Hepatitis C
Product Recalls
Spring Holidays
Mardi Gras
Wellness & Productivity
Spring Book Pick
Thoughtful Thoughts
Tax Return
Did You Know?
Refer and Earn
About Our Clients
Quick Links
  
$$ Refer & Earn $$
 
Group 
Business contacts, friends, family and acquaintances -- you just never know when someone you know might need Mazon's accounts receivable factoring services!  Visit our referral page for more info.  
About Our Clients 
Handshake 
Our clients are traditionally businesses that are manufacturers, distributors and service companies in the following areas:  advertising / marketing / apparel / design / courier & delivery services / equipment repair & maintenance / environmental services / graphic design / signage & printing / staffing & employment services / security services / catering & food services / legal services / light construction / telecommunications / transportation services.
  
Our clients may include start-up, early-stage growth and high-growth businesses; under-capitalized businesses with historical operating losses; businesses with cash flow problems having a cash flow need; businesses with tax liens or turnaround situations; businesses who may have been turned down for bank loans and/or do not currently meet a bank's credit criteria.
  
Our clients have delivered services or products to other businesses and have business-to-business invoices that can be independently verified.
  
Most of our clients have come to us through referrals from current and former clients.  We rely heavily on word-of-mouth marketing to bring in new clients -- and we offer a lucrative referral program.
  
Our clients are located in any of the 50 states in the U.S.A.
  
We do not accept as clients businesses which have a majority of consumer receivables such as retail businesses, progress billings, third party pay medical receivables and certain construction-related businesses.
  
For more information about becoming a client, please contact us by telephone 972-554-6967 or toll-free 1-800-442-2740, or visit our website: www.Mazon.com.