Category: Business Principles
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Referrals in Business
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’.
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Cost of Sales – Various Formats
Many business owners misunderstand the use of term ‘Cost of Sales’ by restricting it to just simply ‘Cost of Goods Sold’. Basically, most business entrepreneurs and even accountants don’t realize that it has several different names and presentation formats. But it is essentially costs of sales.
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Limited Liability Company – Step By Step Setup
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…
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Limited Liability Company – Introduction to Basic Principles
The Limited Liability Company or LLC is really a fusion of two forms of business entity status. Each has unique positive attributes and legal protections.
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At-Will Employment Doctrine
In the world of employment, there are two positions of bargaining. One is the employer and the other is the employee. In general, the public views the two positions as unequal in nature given the power of the Company. This is due to the historical position the courts have taken in employer/employee cases. As the human resources…
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Long Term Debt – Explanation and General Understanding
In the arsenal of capitalizing a business operation, long term debt serves as one of the primary sources of capital. If you are an owner of a small business, you need to understand the relationship this source has to the overall financial status of the company. Too much debt and the owner is burden by…
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Partnership Agreements – Managing, General and Limited Partners
Every partnership consists of at least two or more partners. In many partnerships, there are dozens of partners. Each partner is classed into a particular group. There are Limited Partners, General (sometimes referred to as Operating) Partners and of course somebody who is in charge – the Managing Partner. Each of these classes of partners has…
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Errors and Omissions Insurance
Oops! We’ve all done it at some point in our lives. We make a mistake while serving a client. Mine cost me a little over $2,000 in penalties to the Internal Revenue Service for failure to file an extension on a partnership tax return. Not a good day.
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How Much is a Fair Profit? – Part IV of V Return on Capital
For all investors in business, capital is the fronted equity an investor risks in exchange for a return. This return can range from zero to infinity depending on the success of the business. A fair profit is really a function of four different factors.
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Various Sets of Accounting Books
Accounting’s primary purpose is to measure economic activity. There are several different methods to determine the economic value generated in your business each year. In accounting this is referred to as sets of books. There are four basic sets of accounting books. Each has a different purpose and end goal.