Month: January 2015

Referrals in Business

Referrals

By far, the single most effective and inexpensive marketing tool is referrals. Simply stated it is a ‘Selective Word of Mouth’ form of marketing. The key to its success relies in the ‘Ask’. 

Estimated Tax Payments – Why and How

Estimated Taxes

In the normal taxpayer relationship with the Internal Revenue Service, the taxpayer is an employee and via withholding, taxes are paid the U.S. Government by the employer. Basically the employer pays the tax after each payroll run on behalf of all the employees and the corresponding mandated matching taxes (Social Security and Medicare). But in the small business world, this is not the normal relationship.

Real Estate Syndication

Real Estate Syndication

Have you ever wondered how apartment or office complexes are financed? A typical complex will have 80 to 100 units and the cost of construction will approximate $7,000,000. Where does this money come from? Your average person will think it is financed by a mortgage of some sort. 

Limited Liability Company – Step By Step Setup

Limited Liability Company

There is multi-step process to establish a Limited Liability Company (LLC). You must first be recognized by the state of origin and then apply to the Internal Revenue Service to identify the particular tax entity arrangement. Both recognition processes have several steps involved. This article guides the entrepreneur through each of the steps to create a Limited Liability Company. 

Booth Rental – Legal and IRS Compliance

Booth Rental - Legal and IRS Compliance

A long standing custom in the hair salon industry is owners of salons leasing out booths to hair stylists. If not properly documented and exercised appropriately, the owner opens the door for many legal issues. Booth rental has both legal and IRS compliance issues that need to be addressed. Booth rental is legal in many states but you must adhere to several contractual compliance requirements to completely separate your salon from the renter.

Fixed and Variable Costs in a Restaurant

Fixed and Variable Costs in a Restaurant

Many restaurant owners and managers do not understand the difference between their fixed and variable costs. The problem with defining fixed and variable costs in a restaurant relate to their connection with sales. In addition, reasonable assumptions have to be made in order to delineate between fixed and variable costs in the food service industry. 

This article will explain the difference between fixed and variable costs in a restaurant, provide examples of both and educate the reader on proper analysis procedures to create baselines for improvement.  I am a big believer in the feedback loop method of business operations in order to maximize profit and reduce overall stress for the owners and management team. 

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