v.19 n. 14 – Released April 1, 2015
Today, every business needs more than an edge. In an atmosphere that’s filled with competitors looking to fill every niche at lightning speed, every aspect of a business needs move with the speed and fluidity of a startup. Fortunately, technology has made this readily possible.
First, think small, but do it in a big way. The cloud is huge, but it has the potential to make your business more agile than even your largest competitor. Centralized storage not only saves on server and backup costs, but also allows your entire workforce to access every bit of relevant information in real time. Even better, they can do it remotely.
The ideal of the paperless office is quickly becoming a reality, and cloud computing is the way it’s happening. Every document, report and record can be stored in a single location that’s accessible from locations as close as the corner office and as far away as your sales team in Singapore.
Seattle’s new minimum wage law takes effect today, the first stage of an extended ramp-up that will see all business in the city paying $15 an hour by 2021. Workers at large businesses will see an increase today to $11, from Washington’s state minimum wage of $9.47, already the highest in the nation.
This map shows the up-to-date status of the minimum wage across the country.
When something amazing happens to someone, one of the first things we want to say is, “You’re so lucky.” This is an appropriate reaction to someone finding $20 on the floor or winning concert tickets, but when it comes to operating a business, is success really a result of luck? It may seem that way when your business is struggling despite all of the hours of hard work you’ve invested in it, but there are strategies you can implement that will slowly but surely help you pave your own path to great success.
It is generally more tax-efficient to be paid a salary than to receive dividends, given that salary expense is deductible and dividends are paid on an after-tax basis. If the IRS thinks some portion of your salary really should be treated as a distribution of profit, that portion would be added to the pool of corporate revenue subject to tax.
It all comes down to the meaning of the word “reasonable.”
It all comes down to the IRS definition of “reasonable.”
“Whether the pay is reasonable depends on the circumstances that existed when you contracted for the services, not those that exist when the reasonableness is questioned,” according to the IRS.
Suppose, for example, you paid yourself a $250,000 salary at a time when your company was small, with gross revenue of $500,000, two employees besides yourself, and you were not working around the clock. Suppose further that after five years your business has tripled in size and you are still paying yourself $250,000.
Everything that follows actually happened. I’ve changed the circumstances and identity of the people involved significantly, but the gist of the story is true. It’s at once proof of the old adage, ‘The truth will out’.
Sara and Tom have been friends since they worked on a successful advertising campaign for a major spirits producer. In their ten years as friends they’ve shared a lot: Holiday gatherings, the breakup of Tom’s marriage and their dreams of opening a music venue. Sara’s husband Bill was also good friends with Tom and supported their idea of opening the night club, up to the point pledging property he and Sara owned free and clear in San Francisco to secure start up money.
Because of their connections in the advertising and corporate worlds, Tom and Sara knew a lot of inside stuff. For example, they found out that a coastal city was pouring millions into a waterside development and had attracted several X Games type events to the area to take place in about two years time. Knowing this, the pair secured a lease on a large space in the heart of the development, negotiating a six month delay in rent payments.
Continue reading “Case Study: The Music Lovers | Peter Mehit”
For first-time home buyers, sticking to a budget is crucial. Though it’s tempting to splurge on a dream house, eager buyers need to remember that much more goes into a housing budget than a home’s asking price. Buyers also need to consider mortgage payments, property taxes, maintenance costs and even optional projects such as renovations and landscaping.
Because budgeting and saving for the future are central components of home ownership, greenhorn buyers should examine a variety of home acquisition methods to see which one best fits their budget and goals.
One option that appeals to many buyers with pinched pockets is buying a home — foreclosed or non-distressed — at auction, where bidders decide how much the home is worth and can leave with a title the day of the auction.
When it comes to saving, we aren’t doing enough of it.
Roughly half of Americans are saving 5% or less of their incomes, including 18% that are not saving anything, according to a survey from Bankrate. Only about a quarter of people are saving more than 10% of their earnings.
So how much should you be saving? Bankrate recommends 15%.
“Between emergency savings and the ever-increasing burden of retirement savings that is on the individual, the goal should be 15% of your income,” said Greg McBride, the personal finance website’s chief financial analyst.
Currently, one in seven people are saving more than 15%, the report showed.
In October 2014, Apple launched its highly anticipated mobile wallet solution, Apple Pay. Although the ability to make purchases through a smartphone app was not a brand-new concept, the business world viewed Apple Pay as the product that would finally push near-field communication (NFC) and contactless payment technology to the forefront of retail.
“Apple raised visibility [of payments as] something you can and should be able to do with a mobile device,” said Gregory Mann, chief marketing officer of mobile wallet solution LoopPay. “It took the conversation out of B2B partners … and brought it to consumers’ dining room tables. The average person out there [now knows] this is something you can do with your phone.”
It is a common complaint that most mobile phones look the same these days.
But designer Sean Miles has created one that should stand out from the crowd.
It is the first mobile phone made entirely from recycled and natural products, he says.
The phone’s casing – which is integrated into the phone – is made from recycled resin and specially treated grass clippings.
Dispatches From The Front 