Most small business owners when starting up have tight budgets and some even start on shoestrings. Many don’t plan far enough in advance for the ups and downs of operating a business. It’s a well reported fact that ninety percent of all new businesses fail. Even with the odds stacked against them, determined and optimistic entrepreneurs take the plunge of self-employment by the horns.
That being said, it is important to have some funds whether it be self-financed, or borrowed and of course a well thought out budget and business plan. Many businesses fail because they forgo this area of the business simply because it seems too difficult or just feel it isn’t needed. The Small Business Administration as well as SCORE both can help new business owners develop a clear plan and budget.
Many new startups are able to utilize a spare room in their home as an office until the business grows to a point where they absolutely must leave the comfort of their home office and delve into buying or leasing space. Many may rely on a computer or laptop they have for home use, which can be a grave error when it comes to operating a business for several reasons.
First, using a home pc is not tax deductible, you cannot write off the cost of it or depreciate it when it comes time to settle up with Uncle Sam. Tax laws are more complex than many of us want to think about, but in order to claim a computer it must be 100% for business use. Do check with your accountant and the irs.gov web site.
Next, using a home computer is detrimental to your business, because most basic home pc’s are made for home use - some games, doing homework, surfing the net and a few other things. They are not really designed to run sixteen hour days seven days a week. Most of them are used on average about 2-4 hours a day and will last a couple of years if they are well maintained. That is another topic I may delve into some day.
Finally, business machines come with better processors, motherboards, hard drives etc. The cost is usually much higher than the standard home computer, but many novice users only consider the value of that investment when their computer has a major failure and the manufacturers do not have consumer products on a high priority list to repair them. This is how it worked out when I was working for one of the companies that dispatched technicians to repair home computers.
Here's a hypothetical scenario: your computer fails, you call tech support. Tech support runs you through a series of tests to determine the issue. Once the issue is determined, they order the part and send the work order to a technician in your area. The technician who is a contract worker who is paid a set amount for each call. They wait to receive the part, then call the customers to set an appointment time. Think about how your cable company sets a time. These contractors do as many jobs in a day as they can so they get a decent paycheck. Many times those techs work for another company that has contracted with the company that contracted with the contact company. Sounds like a soap opera.
So a tech comes to your house to replace damages hardware and determines the part was not the issue but that it was another issue. So, from your house, the tech contacts the tech support company so the new part can be ordered and then shipped to the tech himself and that they will call you when it comes in. Can you imagine how frustrating this would be? I can tell you my first day live on the phone with that company with just a couple days of training , my first call went like this. “Hi, thank you for calling Tech Support How can I help you.” I hear a woman sobbing on the other end, then she says “Who do I need to sleep with to get my computer fixed? I am a tall blonde fit and attractive.” As a single man I could have replied to this in several ways, however, I decided to be as professional as possible. So I replied “Ma'am, I don’t think that is a requirement of your warranty, please tell me what’s going on so perhaps I can help you.”
It turns out that she worked from home as a writer and she needed her computer but couldn’t just go out and buy a new one. The motherboard went out and the tech was dispatched the wrong part several times. It had been over three months since she first called in. She is lucky because in my case, I put her on hold walked over to the tech support people that dealt with the technicians and were responsible for dispatching parts and then was told I needed to call the shipping warehouse in Memphis to get the part overnighted. So I did and she finally got the computer fixed. FYI most customer service support will say something, like I have done everything I can, you will be contacted as soon as possible.”
So what else did I learn while working for that company? I learned how to fix my own computer, but I also learned that there was a separate line for tech support for business machines from extremely high tech to SMBs. When you buy a business machine, and you should confirm when you make the purchase, you generally get next day onsite service and parts barring weekends.
A small business owner can handle a one day down, even rent a computer while theirs is waiting to be worked on. So be smart, have a plan in case there is a failure, like knowing where you can get a rental if your computer will be down for an extended amount of time, but more importantly purchase equipment that will work when you need it to.
Jim Palmer is the Marketing Director Spokesperson for BuyDirectUSA.com
launched in 1998 dedicated to promoting products and services in the USA to help keep US manufacturing thriving and creating jobs for Americans. If you are a US manufacturer and need help promoting your products or services, contact us.
The National Federation of Independent Business/Ohio, the state’s leading small business association, announces the election of new members and officers to its statewide Leadership Council.
Newly elected members of the NFIB/Ohio Leadership Council include:
• Steve Bruns, Bruns General Contracting (Tipp City)
• Clara Osterhage, RLO, Inc. Great Clips (Dayton)
• Ben Pearson, Manchester Animal Clinic (Manchester)
• Zoi Romanchuk, PR Machine Works (Ontario)
• Susan Sukys, Mosaic Financial Group (Mt. Vernon)
Pictured l to r: NFIB/Ohio Vice President Roger Geiger, Clara Osterhage, Ty Baker-Baumann, Zoi Romanchuk, Susan Sukys, and Steve Bruns.
In addition to electing members of the Council, the following members were elected to serve in leadership positions:
• Ty Baker-Baumann of REBSCO, Inc. (Greenville) was elected council chair;
• Chris Ellis of Helping Hands Healthcare, Inc. (Cincinnati) was elected vice chair;
• Albert Macre of Albert F, Macre & Company (Steubenville) was elected chair of the NFIB OH PAC, the organization’s political action committee, and;
• Mark Fowler of Crestline Products (Crestline) is the immediate past chair of the Council.
The council, which holds quarterly meetings that serve to guide the organization’s statewide activities, currently has 39 members in total. The NFIB/Ohio Leadership Council is made up of independent smb owners whose role it is to help steer the organization’s advocacy program while assisting in efforts to bring small-business issues to the attention of state and federal.
The members serving on the Leadership Council represent businesses of varying sizes and geographic areas of the state of Ohio. As a truly member-driven organization, the 39 members of the Leadership Council participate in committees, assist in the implementation of NFIB events across the state, as well as serving on statewide boards and commissions and in their local governments.
“Representing 23,000 small business owners in Ohio, NFIB serves as the voice of Ohio’s economic engine. We are proud to have this group directing our state Leadership Council and advancing the cause of Ohio’s entrepreneurs in their ability to own, operate, and grow their businesses,” said Vice President/Executive Director of NFIB/Ohio Roger R. Geiger. “As a member-driven association, NFIB relies on the involvement of members such as these to offer their knowledge and guidance to allow us to truly be the leading representative for small business at the Ohio Statehouse.”
Bill Channels Needed Capital to Small Firms after Devastating 2017 Hurricanes, Fires
Washington, D.C. –Yesterday, the U.S. House of Representatives passed a bill authored by Rep. Nydia M. Velázquez (D-NY) to help small businesses recover from natural disasters. Following the costliest year on record for damage inflicted by natural disaster, Velázquez’s bill, H.R. 4792, the Small Business Access to Capital after a Natural Disaster Act, would help local small businesses secure the loans and capital they need to rebuild. Specifically, the Act would require the Securities and Exchange Commission’s (SEC) Office of the Advocate for Small Business Capital Formation to identify and address the unique challenges that small businesses and investors face in securing access to capital after a disaster.
“When disaster strikes, local small businesses are especially hard hit,” said Velázquez. “Facing a combination of lost revenue and structural damage, many firms are forced to close their doors, sometimes for good. This bill would take decisive action to provide small business owners with capital they need to rebuild and get local economies moving again after disasters. I’m pleased my colleagues have seen fit to pass this legislation with such strong bipartisan support.”
According to the Federal Emergency Management Agency (FEMA), over 40 percent of small businesses never reopen after a disaster. In Puerto Rico, small and midsize businesses make up ninety percent of private companies on the Island. After Hurricane Maria, two-thirds of these firms have been forced to close, at least temporarily. In New York and New Jersey, over five years since Superstorm Sandy, local communities continue to suffer from millions in lost revenue after businesses have been forced to close or delay reopening.
Established in 2016, the SEC’s Office of the Advocate for Small Business Capital Formation is tasked with identifying issues and proposing changes to benefit small businesses and their investors. Velázquez’s bill requires the Advocate to now also consider the unique challenges that small businesses affected by natural disasters have with securing access to credit and to work to promote their interests.
Velázquez is the third most senior Democrat on the House Financial Services Committee and Ranking Member of the House Committee on Small Business. The Small Business Access to Capital after a Natural Disaster Act passed in the House with bipartisan support. The legislation must now be considered in the U.S. Senate.
by Tim McDermott
BWC takes our mission to take care of Ohio’s workforce seriously.
On February 1, 2018; we’re launching our new hassle-free, paperless health and wellness program: Better You, Better Ohio!
Better You, Better Ohio! will bring your employees a wealth of health and well-being resources at no cost to them or you!
BWC will offer $6 million in funding on a first-come, first-served basis to Ohio’s workforce whose SMB employers do not have such a program.
Further enhanced with financial incentives, Better You, Better Ohio! provides your employees' opportunities for:
Various wellness activities, including lifestyle coaching.
This program was designed to help Ohio SMB employers with 50 or fewer employees in the following industries:
agriculture ● manufacturing ● public safety, police & firefighters,
automotive repair & service ● restaurant & food service ● transportation & trucking
construction ● public employers ● wholesale & retail
We’re holding a free, 30-minute educational presentation at 10:00 a.m. on Wednesday, January 24, 2018 in room #348 at the Warren County Career Center, 3525 North State Route 48, Lebanon, OH 45036
Seating is limited so please respond to this email to reserve your seat.
I look forward to seeing you next Wednesday.
Timothy McDermott, ARM, CPM, CWCC
Regional Business Consultant
135 Merchant Street
Cincinnati, Ohio 45246
(513) 583-4594 Cincinnati
(740) 353-3419 Portsmouth
(614) 621-1232 fax
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