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How to Choose the Proper Entity for Your Business
First, let me state that I'm not an attorney and the rest of this article is just based on my experiences so I'd advise you to contact John Hyre at www.realestatetaxlaw.com to get some solid, specific advice on your particular situation.
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Interview with Ron Mead: The Secret Goldmine Of Probate Real Estate
Noelani Rodriguez : You’ve written a nice book about probate real estate.. It is easy to read. It’s obviously worth thousands or even millions of dollars in real estate profit potential, and it's only $29.95. That's fantastic Ron. How’d you come...
Investors: Avoid These 5 Common Tax Mistakes
For many investors, and even some tax professionals, sorting through the complex IRS rules on investment taxes can be a nightmare. Pitfalls abound, and the penalties for even simple mistakes can be severe. As April 15 rolls around, keep the...
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Working With Your Real Estate Attorney
Purchasing or selling a home will probably be one of your largest and most important financial transactions. Before signing a contract to purchase or sell a home, both buyer and seller should consult an attorney to assure that the real estate...
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Five Ways to Improve Your Bottom Line
Copyright 2005 Log Cabin Rustics
“A penny saved is a penny earned”, the old adage attributed to Ben Franklin, only tells half of the story. A penny saved is really better than a penny earned, because you don’t have to pay taxes on it. Here, then, are some time-honored ways for you to save money and improve the bottom line for just about any business:
1. Review and Update Your Business Goals
Many people are adept at staying very busy while accomplishing nothing of value. Don’t fall into this trap—and, if you do--dig out as quickly as possible.
In order to succeed, you must set clear goals. If you have employees, those goals also need to be communicated to them. While there are many good and noble goals you can set for your business, one of the most profitable that I often ask myself is “what can I do that will make the most money the fastest?”
This doesn’t mean that other goals such as contributing to good causes or providing excellent customer service aren’t important. If you don’t provide excellent customer service you won’t be in business very long anyway. But goals can often be clarified by setting them in order, and determining which will bring the quickest, most long-lasting financial results to your business is a great place to start.
2. Find your Niche and Develop a Competitive Edge
While it’s hard to compete with the “big boys”, there is plenty of room for small businesses to find their competitive niche. My competitive niche happens to be log furniture. While there is competition in that niche, I don’t have to compete with the “big boys” such as Walmart when it comes to selling log furniture. Tracking down Amish suppliers on lonely country roads, developing relationships with those suppliers, picking up, packing and shipping log furniture just isn’t part of their business plan. And it probably never will be.
Your niche will probably be something different than shipping log beds, but you can be sure that there is a niche open to you. The key is to find the profitable activity that your business does best, and focus on that.
3. Hire Superior Employees Who Share Your Company Culture
If your business is large enough to require employees, be careful who you choose. In my experience, it’s better to pay more for top-notch employees who won’t require daily baby-sitting, than to nickel and dime it with job-hoppers who are perpetually unmotivated, late to work, or enmeshed in personal problems so deep that they can’t perform their job.
Everybody goes through difficult times in their life, and you need to be sensitive to that. Your company will be miles ahead, however, if you can find employees with the emotional energy to buy into your vision and get excited about their jobs.
You can find, develop and keep that kind of employee by investing significant amounts of time to recruiting and training. Make sure your compensation package is attractive, and, if at all possible, offer health insurance. Incentive compensation or
Associated Websites
profit-sharing plans can also be quite helpful in motivating employees to previously unheard of heights of achievement.
4. Standandize and Simplify your Procedures
It’s amazing how much time developing a simple form can save a company. The more people involved in your business, the more important it is that you have a set of standard procedures to follow. This will reduce training time when employee turnover occurs, lower the chance of errors, and increase efficiency in all aspects of your business.
5. Measure the Results of Your Efforts
Company and personal goals need to be quantified to determine if the desired results are being achieved. Key areas of measurement include the cost, quality, quantity and timeliness of work to be done. Each of these areas can have a profound impact on the bottom line of a business.
Cost: It goes without saying that if two Amish furniture suppliers offer similar quality, furniture design and delivery timing—but one is substantially lower in cost than the other, I go with the lower cost supplier. There are a few exceptions to this rule, but not many.
Quality: Quality is everything in most businesses, and log furniture is no exception. I’m not the least bit interested in shipping defective furniture from Michigan to California and back again, all because a customer wasn’t happy. That is a total waste of money, and hits the bottom line directly. This is why we are such sticklers about quality control, and why it’s been nearly four years since a customer even thought of returning an item.
Quantity: Generally speaking, if you sell more, you make more. This is certainly the case with rustic furniture suites, especially with the high cost of shipping today. As a result, our website is focused around selling larger orders. We’re always happy when somebody orders a log bed, but we try to make it appealing for them to buy a nightstand and dresser too, by offering truly significant discounts. Regardless of your business, you can likely do the same. It’s generally easier to sell more product to an already existing customer, than to go and find new customers.
Timeliness: Late deliveries cost money—at least they do in our business. It costs money to overnight packages that could have been sent by UPS ground or the postal service. It costs big money to expedite pallets of furniture. In addition, there is the stress, hassle and disorganization that comes with rushing around to do things at the last minute. This is why I try to leave a timing “cushion” in every furniture order I process. Regardless of what you’re selling, you should too.
Doing things in a timely, organized manner gives a sense of professionalism and control—and that practice, together with the other suggestions mentioned in this article, can also have a direct and positive impact on your company’s bottom line.
Cari Haus, CPA, is webmaster and owner of http://www.logcabinrustics.com/ an online retailer of log furniture and log beds.
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