Are you Ready for Retirement?

July 31, 2014 by

business (9)There are many compelling reasons why business owners should pay more attention to their retirement plans.  Often times the responsibility to fund a pension plan for them and for their employees fall on the shoulders of the business owner and more times than not it is relegated for a later date that never comes. Here are three compelling reasons why you should talk to an accountant and financial advisor to help you plan for your future.

  1. It is a financial responsibility you have to your employees and yourself to secure a future that will provide financial stability later on.
  2. Talk to an accountant or financial advisor for potential tax benefits for your business when setting up a retirement plan.
  3. Having a retirement plan can secure your top performers or attract new ones that can benefit your business.

Read more about this and other news by following the links below.

Preparing Small-Business Owners for Retirement

Advisers also can help clients figure out what to do with their time after they retire.

Small-business owners often are so busy working that they don’t take time to plan for their retirements.But that is clearly a mistake, financial advisers say.In turn, advisers are helping these entrepreneurs more accurately value their businesses as well as their personal expenses, and figure out how to spend their time once they…

Small business hiring cools off in July

Not quite the blistering pace reported in June.

Hiring by small businesses cooled off this past month, mirroring a similarly modest slowdown across the broader economy, according to a new report.

Small employers added 84,000 workers in July, down from a two-year high of 126,000 new positions added the month before, according to payroll processing firm ADP. Initially, the company had reported that small businesses (fewer than 50 employees) had added 117,000 jobs in June.

Overall, the economy added 218,000 positions in July. While that’s down from 281,000 last month, it’s otherwise the highest monthly total since November.

Workers are finally getting raises again

One more sign that life is improving for American workers: paychecks are finally growing faster.

The Labor Department reported Thursday that workers’ wages and salaries grew by a seasonally adjusted 0.6 percent during the second quarter, the fastest pace since the third quarter of 2008.

Wages and salaries only make up 70 percent of total compensation, including benefits. Total compensation costs as a whole also grew by a seasonally adjusted 0.7 percent during the second quarter.

Though it’s true that wage growth was much faster before the Great Recession, the news is still a sign that the labor market is tightening, as increased demand for labor helps boost paychecks.

 

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Vacations Are Important For Your Bottom Line

July 1, 2014 by

business (2)Job related stress is universal.  Almost everyone has had job stress negatively affect them personally and professionally, sometimes on a daily basis.  Even people who thrive on it will admit there are times when it’s too much for them.  One of the greatest relievers of work stress is taking time off, whether it’s 1 day or 2 weeks.

And yet there were 429 million unused vacation days in the U.S. last year.  Many Americans don’t take enough time off – to their own and their company’s detriment.  Fore-going time off isn’t healthy, profitable or productive for people, companies or the economy.  It’s estimated those 429 days would have generated $160 billion and created 1.2 million jobs (mental_floss, July 2014).

It’s well documented that chronic stress takes its toll on the body: it decreases the ability to resist infection and maintain vital functions, increases accidents and injuries, creates sleep disturbances and can even negatively alter genetic material at the cellular level.  It’s equally well researched that chronic stress creates mental health issues: irritability, depression, anxiety, memory difficulties, poor decision making, social isolation, poor impulse control and loneliness.

Vacations help break the stress cycle by getting people out of their usual work schedules and habits.  Time away can be a 3 day weekend staycation or 2 weeks in Finland for the Air Guitar World Championships.  The essential part is to do something that’s a healthy break from the stress and routines of work.

A healthy break means different things to different people.  It can be: restful and recuperative, challenging and exciting, a religious pilgrimage, a decadent spa visit, seeing new cultures, or spending time with family and old friends.  It’s important to identify the desired benefits and how to achieve them before the vacation is taken, to be pro-active.

Unfortunately, vacations are often poorly planned and executed, too expensive and as stressful as the job people are taking a break from.  They don’t take time to think about what would be beneficial and what they actually need.  A little self awareness and planning can keep them from making the common mistake of needing a vacation from the stress of their vacation.

Every workplace has some form of stress, therefore, employers and employees alike can greatly benefit from time off.  Some companies have recognized this fact and made it mandatory for everyone to take all of their vacation time.   A mentally and physically healthy work force, capable of coping with workplace stress, goes a long way towards efficient productivity and successful profitability.

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How the Ohio BWC is Hurting Small Businesses

May 28, 2014 by

business (3)News about the Bureau of Workers Compensation and the illegal practices against small business, the cost to Ohio workers and the state as a whole is nothing short of abhorrent.  How many small businesses have scraped by or gone under because of the high rates imposed by the BWC? Small business with less capital are  at the mercy of these institutions, and the rates that have been historically and inexplicably high have certainly put a burden to the small business owner. Read more about this topic by following the links below.

BWC is hurting small businesses

The Ohio Bureau of Workers’ Compensation is hurting the majority of job creators in Ohio — the small business owner, like me. It overcharged me and Ohio’s other small business owner so it could give a few businesses, usually the larger companies, huge price breaks on their worker’s compensation coverage premiums. A court has ruled that the BWC overcharged me — to the tune of several hundred dollars a year, and the majority of other small business owners illegally. It is sitting on an $8 billion (that’s right billion with a “b”), but refuses to pay the judgment against it; even after losing the frivolous appeal it filed to try to overtune the judgment against it in favor of the small business owners it overcharged.

It’s time for the BWC to do the right thing, take responsibility, and pay the judgment against it in favor of the small business owners it overcharged. And every day the BWC refuses to honor its obligation, it is costing Ohio $2.3 million dollars a month. It’s time for the BWC to meet its responsibility to pay its obligation to the roughly 270,000 employers who struggled to pay the Bureau’s illegally inflated premiums when paid and who continue to thwart the same roughly 270,000 employers from investing on the future of Ohio’s economic comeback.

Ohio Senate approves bill to expand income, business tax cuts

COLUMBUS, Ohio — The Ohio Senate on Wednesday approved one-year expansions of state income and small-business tax cuts, as well as raising tax credits and exemptions for poorer Ohioans.

The Republican-sponsored measures in House Bill 483, which passed the Senate, 24-8, come as a result of higher revenues and lower state spending than expected.

Under the revised budget review bill, a 9-percent income tax cut previously approved for this year would be increased to a 10-percent cut. The move would save taxpayers an additional $94 million this year, according to state Sen. Scott Oelslager, a North Canton Republican.

Another change would give businesses making $250,000 or less a 75-percent business tax deduction for 2014, up from a 50-percent deduction in current law. That would mean $225 million in savings, Oelslager said.

System works against small businesses

For many years, the Ohio Bureau of Workers’ Compensation has favored some businesses and charged more for others (“Appeals court: Ohio businesses were overbilled,” Dispatch article, May 17). This ends up making the small mom-and-pop shops that employ many Ohioans the bearers of undue burdens.
Many of us go out of business due to these unfair practices.

The Bureau of Workers’ Compensation has lost its case in court, and again lost its appeal. It’s time for Ohio small businesses to get what is lawfully theirs.

We are Ohio. The bureau is here to serve us, not themselves.

JOHN ANDERSON
President/CEO
Anderson Computer Consulting
Marion

Regulators close small lender in Ohio

WASHINGTON — Regulators have closed a small lender in Ohio, marking the eighth U.S. bank failure of 2014 after 24 closures last year.
The Federal Deposit Insurance Corp. said Friday that it has taken over Cincinnati-based Columbia Savings Bank.
The lender, which operated a single branch, had about $36.5 million in assets and $29.5 million in deposits as of March 31.
United Fidelity Bank, based in Evansville, Indiana, has agreed to assume Columbia Savings’ deposits and to buy essentially all of the failed bank’s assets. Columbia Savings’ failure is expected to cost the deposit insurance fund $5.3 million.
U.S. bank failures have been declining since they peaked in 2010 in the wake of the financial crisis and the Great Recession.
Only three banks went under in 2007. That jumped to 25 in 2008, after the financial meltdown, and ballooned to 140 in 2009.
In 2010, regulators seized 157 banks, the most in any year since the savings and loan crisis two decades ago. The FDIC has said 2010 likely was the high-water mark for bank failures from the recession. They declined to 92 in 2011 and fell to 51 in 2012.

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How To Spot Problem Employees Before Hiring Them

April 3, 2014 by

business (7)How to Spot Problem Employees Before Hiring Them

The whole hiring process requires careful thought and consideration. If an employer is not careful there are many things that can be overlooked in finding great employees. Upon viewing a prospect, the employer should view the initial application carefully to see if there is anything there that appears to be misleading or false. References and past employers should carefully be checked by giving them a call and asking a few unexpected questions and making certain that the past employer has a legitimate company. The past employer can be researched to see if they really exist.

If the application looks impressive, the next phase would be to give the person a call and let them know that their application was received and ask them why they feel they would be a good prospect for the job. It would be a good idea to tell them about the main job duties and ask them if they have experience in those areas. If the applicant is able to answer the questions in a convincing manner then this would be a great time to schedule an interview. If the person does not sound convincing they could be told that that there still needs to be time to view their application. This would be the perfect time to send them an email and thank them for their application and let them know why it was denied.

The interview is the final draw. First impressions mean everything. The applicant should be dressed for success suitable for the interview. Does the employer really express that they are interested in the company or in just getting paid to do a job? Some concerns may be health related problems that may cause this person not to be able to perform well on the job. The applicant should be able to work the hours needed and be able to be to work on time. Does the applicant answer in a way that he or she comprehends the questions asked? Does he or she communicate well and present themselves professionally? The answers to these questions could be red flags that help spot problem employees.

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Tax Cuts For Small Business Owners

February 25, 2014 by

business (6)As a small business owner is always nice for you and your wallet to hear that you won’t be paying as much in income tax for 2013 as you did the previous year.  Under the measured passed by the Ohio Legislature last year, small business owners can deduct half of their business income up to $250,000 this year.  That is significant if you considered the amount saved in taxes can be used to invest in the business, or buy machinery that needed to be replaced.

To read more about this follow the links.

Small Businesses Sort Out Affordable Care Act Details

Small businesses around Ohio are struggling to sort out the details of the Affordable Care Act.

As Lewis Wallace reports from Ohio Public Radio  station WYSO, it’s unclear whether recent delays in the law help or hurt the confusion.

The big Obamacare question for small employers is this: am I required to provide health insurance to my employees or not?

Paul: And that question is sort of like that underwear commercial: boxers, briefs, depends…

That’s Paul Tambe with BW Employee Benefits speaking to Dayton-area small business owners.

And yes, it does depend. Here’s the basic rule: companies with less than 50 full-time employees are exempt.

Companies with 50 or more—need to provide health coverage for their full-timers or pay fines.

Medina residents explain what they want to hear from Governor Kasich at State of State speech

MEDINA, Ohio – Business owner Amy Douglass came up with a quick list of topics that she hopes Governor John Kasich addresses during his State of the State address Monday night at the Performing Arts Center in Medina.

Douglass, who owns The Interior Design Studio and JK Gift Shop, said she would like Kasich to create a statewide initiative to encourage people to shop at local stores.

“It’s very difficult competing against the big box stores, number one, and there are so many small businesses in small towns around Ohio,” Douglass said.

Another concern she would like discussed is the high cost of healthcare, something she has never been able to provide in 13 years as a small business owner.

Douglass only has four employees and they depend on their husbands for health benefits.

“We just can’t afford to offer it and it’s very important to be able to offer something like that to families.”

Why small businesses won’t pay Ohio’s tax collectors as much this year

With tax season in full swing, small businesses will receive a significant tax cut for income they earned in 2013 under a measure passed by the Ohio Legislature last year.

Those who file their business income on their individual income tax form – a vast majority of Ohio businesses – can deduct half of their business income up to $250,000.

That means if a business owner earns $250,000 in adjusted gross income, he or she can exclude the first $125,000 from their tax return. The exclusion is available to each investor or owner in a business, said Ohio Tax Commissioner Joe Testa.

The cut, a part of Gov. John Kasich’s effort to slice income tax rates, is expected to be worth $1.6 billion to Ohio small businesses.

“It’s pretty significant,” Testa said. “This gives them the opportunity to have more revenue they can put back into their businesses, to grow their businesses by purchasing additional equipment or marketing their products or maybe even adding a full-time person when they only had a part-time person.”

Small business owners earning income at the top marginal tax rate – 5.33 percent – could expect to see a $6,000 benefit, said Ohio Development Services Director David Goodman.

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Do You Have A 4-H Club?

March 28, 2011 by

For those of you I’ve coached and others who have sought customer advice, you have heard me say “don’ be afraid to fire a customer”. Frankly this has shocked a few business owners. So to help I’ve worked with them to study and classify their customers. We do this by establishing who they are: A, B, C or D customers.

Another way to look at this is by establishing your own 4-H Club: Hilarious, Happy, Hassle or Horrible.

Here is how the concept fits together:

A (Awesome) customers are Hilarious

B (Basic) customers are Happy

C (Can’t Deal With) customers are a Hassle

And D (Dead) customers are Horrible

Think about your customers.  Typically 10-15% are horrible. They drain the money and energy from you and your business.  Another 10-20% are hilarious and are a sheer delight to work with and serve.  The other 65-85 % are either basically happy or a hassle.

As a business owner, your responsibility is to free yourself from horrible D customers by finding someone more appropriate to serve them. You also must be taking the hassle out of dealing with C customers by raising your prices and better positioning (converting them to B’s and A’s).  And, finally enjoying your happy B customers, and celebrating and laughing with your hilarious A customers.

Another way to think about this is to:  Imagine and dream of your ideal customer.  What do they say to others about your service and product?  How much do they buy from you?  How do they treat your team?  How concerned are they about your success as well as their own?  How do they feel about the value you bring to them and your pricing?  How loyal are they?

Do you have a clear picture of these magnificent, appreciative people?  You should, because they will help you and your business be successful.

Here’s the coaching question(s) of the moment:

Why would such a customer choose your business?

Why would they buy from you?  What changes do you need to make, and what kind of business do you need to create to attract and keep such people?

The truth is that it is our responsibility as the owner to create a business that will attract our ideal customers.  Stated another way, you will always have the customers you deserve.

Here’s my coaching challenge for this week:  Get with your team and ask these (above) questions, and then create an action plan to start doing and being what you need to be to attract and keep the very best customers and to position those C customers higher in your 4 – H Club.  I would love to hear some practical ideas that each of you are implementing.  Call me with some of your thoughts concerning this concept.  Hilarious, Happy, Hassle, or Horrible.

Who you want to work with and serve is your choice.

Find those prefect customers and improve business sales in 2011…call Ohio Business Coach, Ralph Berge 440.838.0991

 

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Why People Challenge Price…

September 27, 2010 by

Customers want several things from their suppliers.  What do you think are most important?

Consumer surveys have shown that most customers want timely service first, quality products and services second, and low price third.  However what’s interesting is what many sales professionals think is the right sequence. When asked in one of our sales seminars, “what they think is most important to consumers”? Sales people offered consistent feedback:  they believe the consumer wants low price first, quality second and good service last. Clearly, there is a difference between what customers really want and what salespeople think they want.

Most consumers tell salespeople they want a low price, when what they really want is low cost.  Think about it.  Do you want the cheapest, or that which effectively solves your problem or fulfills your need or want?  Customers want their problems solved.  They realize they get what they pay for, and that the memory of poor quality lasts far longer than the immediate high of a low price deal.

People object to price when they feel that you are asking them to pay more than what they perceive the value to be.  When most salespeople get price resistance, they simply lower the price.  Usually it’s not a price issue, but one of low perceived value.  So how can you raise perceived value?  Through asking great questions and listening to discover what is causing your customer to be dissatisfied.  Then you will be equipped to show them how your product or service will remove the pain and satisfy their need, and even exceed their expectation. This will ensure that price will be secondary and improve business sales.

An example of a good question you might ask is: What will it cost you if you wait and buy this later?  What will happen if you don’t buy this?  What if you try to save and get a poor cheap substitute?   Another example more specific to our business would be: “What would one lost sale cost you in comparison to the fee for a sales training program?”  “What would it mean to gain one great customer per salesperson this year based on better training?”  The point is, we need to get people focused on — the cost of not doing it or the cost of doing it wrong vs. the value from the investment they will make.  (This assumes your product/service actually does save them money, time, effort, and provides value over time)

Real sales professionals focus on value, what the product or service does for the customer, and not price.  They understand that, while price is an issue, it’s not the most important one.  Price will always seem high when perceived value is low.  Don’t lower prices, raise perceived value.  Lowering price only makes your original price suspect and undermines your credibility.

Remember!  Once you set a discount or concession precedent, you’ll live with it for years with that customer.

Improve business sales…ask Ohio Business Coach, Ralph Berge 440.838.0991

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Five Ways to Build Your Business

August 10, 2010 by

Business Coach, Ralph Berge, an Akron business coach teaches clients and prospects that 5 Ways to Profits is the fastest way to improve business sales and increase profits because of one concept:  Leverage, or as we define it; “ever more with ever less.”

 

If you are like most business owners, you want more: more customers, more revenues, or more profits. The problem is all three of these factors are end results, not what really drive your business. Action’s 5 Ways refers to the 5 areas that drive your profits:

  • Leads … improving and measuring lead generation … and how to leverage any you use now …
  • Conversion Rate … developing sales skills from training your team right through developing strategies will give your sales process a massive boost …
  • Number of Transactions … often the most overlooked and yet most productive ways to increase revenues …
  • Average Dollar Sale … once again probably the easiest to impact and yet so easily overlooked, here we will work with you to increase the value of every transaction …
  • And Profit Margins … strategies to boost your bottom line … impacting both you and your Cash flow …

Call Ralph Berge  (440.838.0991) for more on building your business the smart way.

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5 Ways to Increase Your Profit …

August 6, 2010 by

If you have been around me and Business Coach for very long, you have heard of the “5-Ways”.  It’s great to know about simple profound principles that can really improve business sales and boost your business success.  However, the only way that the “5-Ways” is going to do that for your business is by taking ACTION.  So here is a challenge for every reader of this blog.  Today, create at least one strategy from each of the five ways to implement in your business over the next 30 days, and do it.
CLARITY + ACTION = RESULTS.  Here’s how to do it!

1. Review and understand the formula:
—————-Formula——————–
#Leads x %Conversion = #CUSTOMERS

#CUSTOMERS x Number of Transactions x Average $ Sale = REVENUE

REVENUE x % Margin = PROFIT
—————-Formula———————

#Leads – the number of prospects expressing interest in buying from you

%Conversion – the percentage of those prospects who make a purchase

Number of Transactions – the average number of times customers buy from you in a given period of time

Average $ Sale – this is the average amount that customers spend on each transaction

% Margin = the percentage of the revenue you keep (profit) after expenses are paid

2. create a strategy for each one of the 5 Ways by answering these questions:

1.  What is one way that you will increase the number of people interested in buying from you?

2.  What is one way that you will help a shopper say “yes” and buy from you?

3.  What is one way that you will encourage a customer to buy again from you?

4.  What is one way that you will help a customer buy a little more from you?

5.  What is one way that you will increase your profit margin?

It is also critical that you measure the result from each strategy.

Improve business…ask Ohio Business Coach, Ralph Berge 440.838.0991

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Want to Know How to Sell… All you have to do is Ask?

June 4, 2010 by

Want to improve business sales? Have you ever answered a question with a question?  Would that be making a difference to your conversion rate? The answer to the latter is most definitely yes! Asking questions not only increases your conversion rate, but builds rapport with your customer and ensures that the sale becomes their idea and not yours. 

Asking questions also means active listening. You can ask questions about your customers work, business, kids or hobbies but make sure that you are listening with sincere interest. It may even be helpful to write down some of the answers – such as the names of their kids, interests etc. for future communication. By asking questions and listening, you are building rapport and attaching importance to their conversation. 

Also, by asking questions you are remaining in control of the conversation. Once you find yourself doing all the talking you are no longer in control. Just remember that the person asking questions sets the direction for the conversation. If the customer is dominating the conversation by asking you questions make sure you answer the question with a question. However, try to vary the questions that you ask. You may remember from looking after your own children or babysitting that being asked “but why?” over and over again tends to get a little monotonous. 

Questions can guide consumer interest, discover a need and give accurate information. There are two commonly known types of questioning – open ended and closed questions. 

Building Rapport and Qualifying…

Open-ended questions are an excellent way to ensure customer involvement in the conversation and are a key to identifying not only what they need but a lot about themselves. You can use open-ended questions to build rapport, to find a need, to discover a customer problem and find the right solution. In journalism there are six key questions used in the interviewing process which is as equally useful in sales – who, what, where, when, why and how. 

Here are a few examples of open-ended questions which are very useful:

Who are you buying the product/service for?

How often would you use the product/service?

What features were you looking for in this product/service? 

This type of questioning yields a lot of great information from your customer and helps you determine which product/service is uniquely suited to them. 

Closed questions tend to get one word answers “yes” or “no.” They can be used to gather information quickly – not unlike a check-list. Using closed questions can also confirm a buying detail and help confirm the sale. 

By using questions you are encouraging the customer to communicate, building rapport, establishing their needs, directing the conversation, diffusing tension and inviting discussion. 

Improve business sales…Learning the art of questioning and listening is the key to increasing your conversion rate and well on the way to creating a continuing customer relationship. 

Improve business…ask Ohio Business Coach, Ralph Berge 440.838.0991

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