It seems that every successful business out there had to deal with failure.
I like to say failure equals success. Sitting at Firestone today,
waiting for them to remove the nail that somehow managed to make it in
our front ride tire, I stumbled upon the August 2012 issue of INC Magazine.
The magazine’s cover story is about 14 entrepreneurs who discuss their
successes, their failures, and the lessons they learned along the way.
Two were fired from the companies they formed. Another worked 20 years
for his overnight success. Another silenced her critics with a $120
million payday. All of these company founders had one thing in common,
the emotional roller coaster that is entrepreneurship. All had failures
along the way to success.
Drum
Cafe, is a corporate motivation and training organization that seeks to
“building teams, uniting companies and motivating staff” through, I am
not kidding you but it seems to work in Silicon Valley, interactive
rhythmic drumming writes in their blog:
Every
mistake is an opportunity to learn. What separates the forever
failures from a rising phoenix success story is quite simply our
willingness to observe a mistake and learn from it. Complete self
honesty is absolutely imperative to this process. We also have to be
willing to have a positive mind story. Here too the aspect of honesty
is the truth that will set us free. If we are tapping into some sob
story from our past that we have painted negatively, we cannot move
forward. However, we can take that same story and ask ourselves “what
did I learn from that experience?” There is ALWAYS
something to learn. For example, if you walk down the street, paying
no attention to the pavement below, you might trip over something. You
can either decide to never walk in that area again, potentially missing
something spectacular, or you can recognize you tripped because you were
not paying attention. You learn to pay attention and walk down that
same stretch of pavement and because of actually looking down you find a
$100 bill!
Now
that’s a simplified example, but I think you catch the point. In case
you need a little more food for thought on the matter of failure being a
stepping stone towards success, here are few noted success after
failure stories:
R. H. Macy:
We are all familiar with this large department store chain, but Macy
didn’t always have it easy. Macy started seven failed business before
finally hitting big with his store in New York City.
Harland David Sanders:
Also known as Colonel Sanders of Kentucky Fried Chicken. The Colonel
had his famous secret chicken recipe rejected 1,009 times before a
restaurant accepted it.
Albert Einstein:
Most of us think of Einstein as a genius, but did you know he did not
speak until he was four and did not read until he was seven, causing his
teachers and parents to think he was mentally handicapped, slow and
anti-social? Eventually, he was expelled from school and was refused
admittance to the Zurich Polytechnic School. He proved everyone wrong
and in the end, won a Nobel Prize and changed the face of modern
physics.
Stephen King:
The first book by this author, the iconic thriller Carrie, received 30
rejections, finally causing King to give up and throw it in the trash.
His wife fished it out and encouraged him to resubmit it. King is now
one of the best-selling authors of all time.
Oprah Winfrey:
Oprah faced a hard road to get to where she is today, enduring a rough
and abusive childhood as well as numerous career setbacks including
being fired from her job as a television reporter because she was “unfit
for TV.”
Thomas Edison:
In his early years, teachers told Edison he was “too stupid to learn
anything.” He was fired from his first two jobs for not being productive
enough. Even as an inventor, Edison made 10,000 unsuccessful attempts
at inventing the lightbulb. Of course, all those unsuccessful attempts
finally resulted in the design that worked.
I
came home and opened my email account only to find this discussion
about the Home Depot founders from Dan Kennedy, selling his $97.00 “Turning Adversity to Opportunity” DVD:
For
example in 1978, Bernie Marcus and Arthur Blank were fired from their
executive jobs at Handy Dan Home Improvement Centers during a corporate
takeover. Instead of putting their tails between their legs, hiding out
and going into paralysis mode like many would, they made a plan to
create their vision--a chain of home improvement centers larger than any
of the competition.
They named it Home Depot.
Although
their grand opening was less than spectacular, I don't have to tell you
that it wasn't long before the company exploded with growth and in only
two decades became the
world's largest home-improvement retailer.
What
does this all mean? First I believe, and most of conversations with
fellow clients concur, the marketplace is not going to get any easier
any time soon. Secondly I’ve actually seen conflicting numbers as it
relates to exactly how many attempts Thomas Edison had at creating the
light bulb. But they were all in the thousands. So, seriously, the
next time you feel like quitting after failing, just think about the
9,999 failures he had. He never gave up and learned from each and every
mistake. In fact, just before finally reaching success, Thomas Edison
was interviewed by a young reporter who boldly asked Mr. Edison if he
felt like a failure and if he thought he should just give up by now.
Perplexed, Edison replied, “Young man, why would I feel like a failure?
And why would I ever give up? I now know definitively over 9,000 ways
that an electric light bulb will not work. Success is almost in my
grasp.”
We have talked a lot in the last few years about our TaxCoach income tax planning software. Enclosed
is a page about one of the most misunderstood tax deductions, the home
office. We have generated a sample report for a small business or S
Corporation owner who operates their business from their home. Take a
look.
Like
it? Make sense? Want more? Do you think you pay too much tax? Are you
confident you’re taking advantage of every legal break? Do you wish
your tax advisor did more than just file your tax return?
I’ve got bad news; I’ve got good news; and I’ve got more bad news.
The
bad news is, you’re right. You do pay too much tax. You’re probably not
taking advantage of every legal deduction. And most tax professionals
do little more than record history, putting the “right” numbers in the
“right” boxes on the “right” forms.
The good news is, you don’t have to feel that way. You just need a better plan. Planning is the key to beating the IRS, legally.
The
“more” bad news is that time is running out. Some of the most valuable
strategies have to be put in place by midnight on December 31.
Otherwise, like Cinderella’s carriage turning into a pumpkin, you lose
them forever!
Our
tax coaching service gives you a plain-English plan for minimizing your
tax. I can’t predict how much tax coaching might save you. But clients
just like you have used these strategies to save thousands, year after
year. You owe it to yourself to make sure you’re not missing any legal
deductions.
I will contact you soon to schedule a brief telephone appointment. If you have any questions, you can reach me at 217-241-4597.
We spent the last weekend at a family get together in New Buffalo, Michigan.
You cannot overlook the number of billboards, as you leave Illinois,
proclaiming the better business climate in Indiana. For example its
worker’s compensation rates are among the lowest in the nation. I don’t
have to remind you; Illinois has a tax mess. Coupled with political
corruption. Massive budget problems. The word is out in the business
community. In fact in May 2012 Chief Executive magazine named Illinois
the 48th best state to do business in. And may I add on a race to
bottom. Pathetic. By the way Indiana was named 5th.
As
a reminder we are open weekdays with a much earlier closing time that
is based more on work flow than the clock. We are still available to
meet with you evenings and weekends. The only thing we ask is that you
call us for an appointment.
Talk to you soon.
Donald C. Fuener EA
President
Sunday, September 2, 2012
Sunday, August 19, 2012
We've got your back
According to the Urban Dictionary the definition of the phrase we've got your back:
You are going to watch out and be a second set
of eyes for someone. You will look out for their best interests and let
them know if they have missed something. You will stick up for them.
Client>>>> one that is under the protection of another
When it comes to the IRS, as our client, we've got your back.
Wednesday, August 8, 2012
12 tempting tax tips from yahoo finance
From Yahoo Finance and Bank Rate
In recent years, as Congress crafted new laws such as housing bills, health care reform or extended tax provisions such as the Bush-era tax cuts, lawmakers were careful to make sure that no major taxes took effect in 2012.
Why? Because it's a presidential election year. No candidate wants to explain to voters heading to the polls why they are facing added taxes.
But there are still many tax considerations in the coming year. Here are 12 tax tips, reminders and planning tools for 2012.
Click this link to read more.
In recent years, as Congress crafted new laws such as housing bills, health care reform or extended tax provisions such as the Bush-era tax cuts, lawmakers were careful to make sure that no major taxes took effect in 2012.
Why? Because it's a presidential election year. No candidate wants to explain to voters heading to the polls why they are facing added taxes.
But there are still many tax considerations in the coming year. Here are 12 tax tips, reminders and planning tools for 2012.
Click this link to read more.
Tuesday, August 7, 2012
August 6, 2012 Client Newsletter
Staples
“the office Superstore” emailed me a rebate last week as part of their
rewards program. The email suggested that I could use it online for my
next purchase. And therein lies a story. Badly needing some mailing
labels I proceeded to make a purchase at staples.com. I opted for the
“no charge for shipping offer” if I picked up my purchase at the local
Staples store since the alternative was for Staples to ship the labels
to me for an additional $17.00 charge. The shipping charges would be
more than the cost of the labels. The purchase confirmation clearly
indicated that the labels would be ready for pick up at the store the
next day. No other instructions about timing or pick up procedures were
included in the confirmation. Perfect.
On the way to work the next day I stopped by Staples to pick up my labels. First you need to flag down a manager to pick up your staples.com purchase. After a short time waiting at the customer service/instant printing counter along comes a very nice young man assistant manager. After asking my name he then started typing on the computer. He then went back to the locked store room and came back empty handed. “Did you get an email?” he asked. “Yes” I replied and showed him my copy. “Well we haven’t got our delivery yet. You will have to come back when it comes in.” “Don’t you carry these labels in stock, right here in the store?” I asked lightbulb clearly going on. More typing on the computer. “Yes we do” he answered. “Well can’t I just take one of them off the shelf?” “I don’t know” he answered. “Let me check.” He then put in a call to what I later found out was the general manager. Five minutes later the general manager called back. “No can do” he said. “You have to come back when the delivery comes in.”
So here is the situation. I am in the store. They have the product I ordered and paid for. There is no information on my confirmation that there is a special time when I could pick it up. I really didn’t want to come back to the store to pick up something that they already had in stock. I also learned a long time ago that you should never take the first no for an answer. Especially considering the sign at the entrance of the store, signed by the general manager, pledging that my customer satisfaction was his number one priority.
“Can I speak to the general manager please?” Thinking that maybe he could solve the problem . “Well he is talking to another manager.” “Perhaps you can pull him away for a minute.”
Five minutes later general manager arrived. I explained the situation. More typing on the computer. Another visit to the locked store room. And then the general manager said something to me that you should never tell a customer.
“You have to come back even if we have it in stock right now. I am not going to take one off the shelf for you. That’s our policy.”
Back in March 2012 I posted a link from our blog to the Inc.com site of an article written by Ron Barley titled The 5 Worst Things You Can Say to a Customer.
From that article:
'That’s our policy.'
I’d wager that even as you read those words, you flashed-back to a past personal experience in which someone spoke them as if they were a magic wand that would miraculously make you go away. But, of course, you didn’t go away. You just became more frustrated, and more convinced that particular company had little interest in your eventual satisfaction.
In seminars, I call it “TOP,” and it is a phrase that is less than useless. It is destructive. TOP is the customer service equivalent to “That’s tough” or “You’re out of luck.” It’s primary purpose is to shut down a conversation. TOP only accelerates the transformation of current customers into a former customers, and was undoubtedly crafted by someone completely oblivious to the value of customer retention. Even worse, for some customers it’s a declaration of war. Every dispute-gone-viral tracked by my firm has involved some version of that terrible text.
Whenever someone tries TOP on me, I respond with a carefully crafted policy statement of my own, “Your internal policy decisions have nothing to do with my expectations of customer satisfaction.” And that’s the point, customers should not accept contract verbiage as an excuse for a less-than-promised product or service. “That’s our policy” might save a current sale, though all future business will likely be lost.
I did have to come back later that day to pick up my mailing labels. Even more interesting is that Staples shipped my mailing labels from their warehouse, already in stock in their store via UPS, in a large box securely stored in their locked storeroom that only managers have access to, which means that a customer has to wait to pick up their purchases, because their managers might be busy talking to other managers about important Staples stuff.
Ron Sargent CEO of Staples writes on their website “we've known for years that a focus on results includes a focus on Staples Soul. Soul is our desire to be a leader in environmental sustainability, business ethics, diversity and community engagement.”
“Environment. We generate business and environmental benefits — for ourselves, our customers and our communities — by leading the way in sustainable business practices. We focus on offering more sustainable products and services, providing easy customer recycling solutions, and operating our business in an environmentally efficient way.”
What is the definition of insanity?
This situation would never have happened in your small business. It was a vivid reminder to me that small businesses who figure out how to stand out in world against so many larger, wealthier rivals almost always find the answer is superior customer service. We don’t just give lipservice to customer service. We are nimble. We run circles around the big guys. We don’t pretend to have good customer service. We live it. We fix very fixable customer service issues on a daily basis making our customers feel good about doing business with us while Staples loses future business by setting bizarre policies and pay lip service to environmental causes..
I recently ran across an interesting report of what I call an IRS audit failure. The TIGTA (Treasury Inspector General for Tax Administration) recently found that IRS audits have led to a substantial number of recommended adjustments to items reported on S corporation returns. The number one adjustment is a failure for the stockholder employee to take a reasonable salary. However, the number of audits closed with no recommended adjustments (no-change) is very high for returns selected by the Discriminant Index Function system. In other words the IRS is auditing returns that don’t need to be audited. 62 percent of S corporation returns audited based on the Discrimination Index Function system last year were closed as no change and compliant taxpayers are being burdened by unnecessary audits.
Don Fuener will be out of the office August 21 and August 23 to August 30, 2012.
On the way to work the next day I stopped by Staples to pick up my labels. First you need to flag down a manager to pick up your staples.com purchase. After a short time waiting at the customer service/instant printing counter along comes a very nice young man assistant manager. After asking my name he then started typing on the computer. He then went back to the locked store room and came back empty handed. “Did you get an email?” he asked. “Yes” I replied and showed him my copy. “Well we haven’t got our delivery yet. You will have to come back when it comes in.” “Don’t you carry these labels in stock, right here in the store?” I asked lightbulb clearly going on. More typing on the computer. “Yes we do” he answered. “Well can’t I just take one of them off the shelf?” “I don’t know” he answered. “Let me check.” He then put in a call to what I later found out was the general manager. Five minutes later the general manager called back. “No can do” he said. “You have to come back when the delivery comes in.”
So here is the situation. I am in the store. They have the product I ordered and paid for. There is no information on my confirmation that there is a special time when I could pick it up. I really didn’t want to come back to the store to pick up something that they already had in stock. I also learned a long time ago that you should never take the first no for an answer. Especially considering the sign at the entrance of the store, signed by the general manager, pledging that my customer satisfaction was his number one priority.
“Can I speak to the general manager please?” Thinking that maybe he could solve the problem . “Well he is talking to another manager.” “Perhaps you can pull him away for a minute.”
Five minutes later general manager arrived. I explained the situation. More typing on the computer. Another visit to the locked store room. And then the general manager said something to me that you should never tell a customer.
“You have to come back even if we have it in stock right now. I am not going to take one off the shelf for you. That’s our policy.”
Back in March 2012 I posted a link from our blog to the Inc.com site of an article written by Ron Barley titled The 5 Worst Things You Can Say to a Customer.
From that article:
'That’s our policy.'
I’d wager that even as you read those words, you flashed-back to a past personal experience in which someone spoke them as if they were a magic wand that would miraculously make you go away. But, of course, you didn’t go away. You just became more frustrated, and more convinced that particular company had little interest in your eventual satisfaction.
In seminars, I call it “TOP,” and it is a phrase that is less than useless. It is destructive. TOP is the customer service equivalent to “That’s tough” or “You’re out of luck.” It’s primary purpose is to shut down a conversation. TOP only accelerates the transformation of current customers into a former customers, and was undoubtedly crafted by someone completely oblivious to the value of customer retention. Even worse, for some customers it’s a declaration of war. Every dispute-gone-viral tracked by my firm has involved some version of that terrible text.
Whenever someone tries TOP on me, I respond with a carefully crafted policy statement of my own, “Your internal policy decisions have nothing to do with my expectations of customer satisfaction.” And that’s the point, customers should not accept contract verbiage as an excuse for a less-than-promised product or service. “That’s our policy” might save a current sale, though all future business will likely be lost.
I did have to come back later that day to pick up my mailing labels. Even more interesting is that Staples shipped my mailing labels from their warehouse, already in stock in their store via UPS, in a large box securely stored in their locked storeroom that only managers have access to, which means that a customer has to wait to pick up their purchases, because their managers might be busy talking to other managers about important Staples stuff.
Ron Sargent CEO of Staples writes on their website “we've known for years that a focus on results includes a focus on Staples Soul. Soul is our desire to be a leader in environmental sustainability, business ethics, diversity and community engagement.”
“Environment. We generate business and environmental benefits — for ourselves, our customers and our communities — by leading the way in sustainable business practices. We focus on offering more sustainable products and services, providing easy customer recycling solutions, and operating our business in an environmentally efficient way.”
What is the definition of insanity?
This situation would never have happened in your small business. It was a vivid reminder to me that small businesses who figure out how to stand out in world against so many larger, wealthier rivals almost always find the answer is superior customer service. We don’t just give lipservice to customer service. We are nimble. We run circles around the big guys. We don’t pretend to have good customer service. We live it. We fix very fixable customer service issues on a daily basis making our customers feel good about doing business with us while Staples loses future business by setting bizarre policies and pay lip service to environmental causes..
I recently ran across an interesting report of what I call an IRS audit failure. The TIGTA (Treasury Inspector General for Tax Administration) recently found that IRS audits have led to a substantial number of recommended adjustments to items reported on S corporation returns. The number one adjustment is a failure for the stockholder employee to take a reasonable salary. However, the number of audits closed with no recommended adjustments (no-change) is very high for returns selected by the Discriminant Index Function system. In other words the IRS is auditing returns that don’t need to be audited. 62 percent of S corporation returns audited based on the Discrimination Index Function system last year were closed as no change and compliant taxpayers are being burdened by unnecessary audits.
Don Fuener will be out of the office August 21 and August 23 to August 30, 2012.
August 6, 2012 Client Newsletter
Staples
“the office Superstore” emailed me a rebate last week as part of their
rewards program. The email suggested that I could use it online for my
next purchase. And therein lies a story. Badly needing some mailing
labels I proceeded to make a purchase at staples.com. I opted for the
“no charge for shipping offer” if I picked up my purchase at the local
Staples store since the alternative was for Staples to ship the labels
to me for an additional $17.00 charge. The shipping charges would be
more than the cost of the labels. The purchase confirmation clearly
indicated that the labels would be ready for pick up at the store the
next day. No other instructions about timing or pick up procedures were
included in the confirmation. Perfect.
On the way to work the next day I stopped by Staples to pick up my labels. First you need to flag down a manager to pick up your staples.com purchase. After a short time waiting at the customer service/instant printing counter along comes a very nice young man assistant manager. After asking my name he then started typing on the computer. He then went back to the locked store room and came back empty handed. “Did you get an email?” he asked. “Yes” I replied and showed him my copy. “Well we haven’t got our delivery yet. You will have to come back when it comes in.” “Don’t you carry these labels in stock, right here in the store?” I asked lightbulb clearly going on. More typing on the computer. “Yes we do” he answered. “Well can’t I just take one of them off the shelf?” “I don’t know” he answered. “Let me check.” He then put in a call to what I later found out was the general manager. Five minutes later the general manager called back. “No can do” he said. “You have to come back when the delivery comes in.”
So here is the situation. I am in the store. They have the product I ordered and paid for. There is no information on my confirmation that there is a special time when I could pick it up. I really didn’t want to come back to the store to pick up something that they already had in stock. I also learned a long time ago that you should never take the first no for an answer. Especially considering the sign at the entrance of the store, signed by the general manager, pledging that my customer satisfaction was his number one priority.
“Can I speak to the general manager please?” Thinking that maybe he could solve the problem . “Well he is talking to another manager.” “Perhaps you can pull him away for a minute.”
Five minutes later general manager arrived. I explained the situation. More typing on the computer. Another visit to the locked store room. And then the general manager said something to me that you should never tell a customer.
“You have to come back even if we have it in stock right now. I am not going to take one off the shelf for you. That’s our policy.”
Back in March 2012 I posted a link from our blog to the Inc.com site of an article written by Ron Barley titled The 5 Worst Things You Can Say to a Customer.
From that article:
'That’s our policy.'
I’d wager that even as you read those words, you flashed-back to a past personal experience in which someone spoke them as if they were a magic wand that would miraculously make you go away. But, of course, you didn’t go away. You just became more frustrated, and more convinced that particular company had little interest in your eventual satisfaction.
In seminars, I call it “TOP,” and it is a phrase that is less than useless. It is destructive. TOP is the customer service equivalent to “That’s tough” or “You’re out of luck.” It’s primary purpose is to shut down a conversation. TOP only accelerates the transformation of current customers into a former customers, and was undoubtedly crafted by someone completely oblivious to the value of customer retention. Even worse, for some customers it’s a declaration of war. Every dispute-gone-viral tracked by my firm has involved some version of that terrible text.
Whenever someone tries TOP on me, I respond with a carefully crafted policy statement of my own, “Your internal policy decisions have nothing to do with my expectations of customer satisfaction.” And that’s the point, customers should not accept contract verbiage as an excuse for a less-than-promised product or service. “That’s our policy” might save a current sale, though all future business will likely be lost.
I did have to come back later that day to pick up my mailing labels. Even more interesting is that Staples shipped my mailing labels from their warehouse, already in stock in their store via UPS, in a large box securely stored in their locked storeroom that only managers have access to, which means that a customer has to wait to pick up their purchases, because their managers might be busy talking to other managers about important Staples stuff.
Ron Sargent CEO of Staples writes on their website “we've known for years that a focus on results includes a focus on Staples Soul. Soul is our desire to be a leader in environmental sustainability, business ethics, diversity and community engagement.”
“Environment. We generate business and environmental benefits — for ourselves, our customers and our communities — by leading the way in sustainable business practices. We focus on offering more sustainable products and services, providing easy customer recycling solutions, and operating our business in an environmentally efficient way.”
What is the definition of insanity?
This situation would never have happened in your small business. It was a vivid reminder to me that small businesses who figure out how to stand out in world against so many larger, wealthier rivals almost always find the answer is superior customer service. We don’t just give lipservice to customer service. We are nimble. We run circles around the big guys. We don’t pretend to have good customer service. We live it. We fix very fixable customer service issues on a daily basis making our customers feel good about doing business with us while Staples loses future business by setting bizarre policies and pay lip service to environmental causes..
I recently ran across an interesting report of what I call an IRS audit failure. The TIGTA (Treasury Inspector General for Tax Administration) recently found that IRS audits have led to a substantial number of recommended adjustments to items reported on S corporation returns. The number one adjustment is a failure for the stockholder employee to take a reasonable salary. However, the number of audits closed with no recommended adjustments (no-change) is very high for returns selected by the Discriminant Index Function system. In other words the IRS is auditing returns that don’t need to be audited. 62 percent of S corporation returns audited based on the Discrimination Index Function system last year were closed as no change and compliant taxpayers are being burdened by unnecessary audits.
Don Fuener will be out of the office August 21 and August 23 to August 30, 2012.
On the way to work the next day I stopped by Staples to pick up my labels. First you need to flag down a manager to pick up your staples.com purchase. After a short time waiting at the customer service/instant printing counter along comes a very nice young man assistant manager. After asking my name he then started typing on the computer. He then went back to the locked store room and came back empty handed. “Did you get an email?” he asked. “Yes” I replied and showed him my copy. “Well we haven’t got our delivery yet. You will have to come back when it comes in.” “Don’t you carry these labels in stock, right here in the store?” I asked lightbulb clearly going on. More typing on the computer. “Yes we do” he answered. “Well can’t I just take one of them off the shelf?” “I don’t know” he answered. “Let me check.” He then put in a call to what I later found out was the general manager. Five minutes later the general manager called back. “No can do” he said. “You have to come back when the delivery comes in.”
So here is the situation. I am in the store. They have the product I ordered and paid for. There is no information on my confirmation that there is a special time when I could pick it up. I really didn’t want to come back to the store to pick up something that they already had in stock. I also learned a long time ago that you should never take the first no for an answer. Especially considering the sign at the entrance of the store, signed by the general manager, pledging that my customer satisfaction was his number one priority.
“Can I speak to the general manager please?” Thinking that maybe he could solve the problem . “Well he is talking to another manager.” “Perhaps you can pull him away for a minute.”
Five minutes later general manager arrived. I explained the situation. More typing on the computer. Another visit to the locked store room. And then the general manager said something to me that you should never tell a customer.
“You have to come back even if we have it in stock right now. I am not going to take one off the shelf for you. That’s our policy.”
Back in March 2012 I posted a link from our blog to the Inc.com site of an article written by Ron Barley titled The 5 Worst Things You Can Say to a Customer.
From that article:
'That’s our policy.'
I’d wager that even as you read those words, you flashed-back to a past personal experience in which someone spoke them as if they were a magic wand that would miraculously make you go away. But, of course, you didn’t go away. You just became more frustrated, and more convinced that particular company had little interest in your eventual satisfaction.
In seminars, I call it “TOP,” and it is a phrase that is less than useless. It is destructive. TOP is the customer service equivalent to “That’s tough” or “You’re out of luck.” It’s primary purpose is to shut down a conversation. TOP only accelerates the transformation of current customers into a former customers, and was undoubtedly crafted by someone completely oblivious to the value of customer retention. Even worse, for some customers it’s a declaration of war. Every dispute-gone-viral tracked by my firm has involved some version of that terrible text.
Whenever someone tries TOP on me, I respond with a carefully crafted policy statement of my own, “Your internal policy decisions have nothing to do with my expectations of customer satisfaction.” And that’s the point, customers should not accept contract verbiage as an excuse for a less-than-promised product or service. “That’s our policy” might save a current sale, though all future business will likely be lost.
I did have to come back later that day to pick up my mailing labels. Even more interesting is that Staples shipped my mailing labels from their warehouse, already in stock in their store via UPS, in a large box securely stored in their locked storeroom that only managers have access to, which means that a customer has to wait to pick up their purchases, because their managers might be busy talking to other managers about important Staples stuff.
Ron Sargent CEO of Staples writes on their website “we've known for years that a focus on results includes a focus on Staples Soul. Soul is our desire to be a leader in environmental sustainability, business ethics, diversity and community engagement.”
“Environment. We generate business and environmental benefits — for ourselves, our customers and our communities — by leading the way in sustainable business practices. We focus on offering more sustainable products and services, providing easy customer recycling solutions, and operating our business in an environmentally efficient way.”
What is the definition of insanity?
This situation would never have happened in your small business. It was a vivid reminder to me that small businesses who figure out how to stand out in world against so many larger, wealthier rivals almost always find the answer is superior customer service. We don’t just give lipservice to customer service. We are nimble. We run circles around the big guys. We don’t pretend to have good customer service. We live it. We fix very fixable customer service issues on a daily basis making our customers feel good about doing business with us while Staples loses future business by setting bizarre policies and pay lip service to environmental causes..
I recently ran across an interesting report of what I call an IRS audit failure. The TIGTA (Treasury Inspector General for Tax Administration) recently found that IRS audits have led to a substantial number of recommended adjustments to items reported on S corporation returns. The number one adjustment is a failure for the stockholder employee to take a reasonable salary. However, the number of audits closed with no recommended adjustments (no-change) is very high for returns selected by the Discriminant Index Function system. In other words the IRS is auditing returns that don’t need to be audited. 62 percent of S corporation returns audited based on the Discrimination Index Function system last year were closed as no change and compliant taxpayers are being burdened by unnecessary audits.
Don Fuener will be out of the office August 21 and August 23 to August 30, 2012.
Tuesday, July 10, 2012
Uncle Sam, Felon?
Recent years have brought us a steady stream of financial cheats,
frauds, and scams. Bernard Madoff, of course. Rotting in jail. The guys
who brought us Enron. Rotting in jail. Bernard Ebbers, head of WorldCom.
Rotting in jail. And . . . Uncle Sam?
That's right, our own beloved Uncle Sam is arguably as
guilty of "cooking the books" as any corporate scamster. In fact, if he
were running a publicly-traded company the way he's running the
government, he'd likely be serving time in one of his own prisons!
Here's the issue. Most of us use what's called the "cash"
method of accounting. It's pretty simple, really. Cash comes in, cash
goes out, and at the end of the year there's a difference we call
"profit" or "loss." In Washington, they call those year-end results
"surplus" or "deficit." For fiscal 2010, that deficit was $1.3 trillion,
and our total national debt now stands at $13.9 trillion (give or take a few billion).
But publicly-traded companies and bigger privately-held
businesses are required to use the "accrual" method of accounting. That
method requires them to recognize income and expenses when incurred,
rather than actually paid. It's kind of like recognizing you owe 30
years of mortgage payments the day you buy your house. And according to
the 268-page Financial Report of the U.S. Government (the closest
thing we have to a federal "balance sheet"), if Uncle Sam used the
accrual method, the government's "net operating cost" for 2010 soars all
the way to $2.1 trillion!
Social Security is the classic example of "off books"
federal accounting. Actuaries estimate that over the next 75 years, the
system will spend $8 trillion more in benefits than it takes in from
payroll taxes and interest on the Social Security "trust fund." And
Uncle Sam owes even more for unfunded promises like future Medicare
benefits ($23 trillion), retirement benefits for federal employees and
veterans ($5.7 trillion), environmental cleanup costs ($300 billion),
and loan guarantees related to Fannie Mae and Freddie Mac ($600
billion). Those trillion-dollar promises are certainly part of the
federal debt. But you won't find them listed in any official balance
sheet!
What does this all have to do with taxes? Well, regardless
of how we calculate the federal debt, there's only one way to eliminate
it. At some point, the government is going to have spend less than it
makes. And that's going to mean higher taxes. If you're dreading the tax
hikes necessary to close a $1.3 trillion deficit, just imagine what
you'll need to pay to eliminate $2.1 trillion!
That's why we're focusing more
of our practice on tax planning. If we're going to deliver the most
value possible, it's not enough just to look at your finances in
relation to where taxes are now. We have to look at them in relation to
where taxes are going to be. So look to us for more than "just" a tax
return each year.
And remember, we're here for your friends, family, and
colleagues too!
Sunday, July 8, 2012
July 1, 2012 Client Newsletter
And the beat goes on. For more than 30 years I have been searching for the answer. What are some small businesses doing to make them successful that others aren’t doing?
I think I found the answer. Or should I say the answers. For the next few months we will continue to share with you some of the things that our clients are doing today to be more successful.
Last month we talked about what the really good businesses were doing right. And it started with a simple one page business plan. Your written plan describes your business, outlines your goals and serves as a roadmap for future activities— everything from handling unforeseen complications to repaying borrowed money. It's a document that should grow with your business, undergoing constant tweaks as your big idea evolves from a concept into a successful company.
Did you take time to fill it out? I did. And it helps.
I have toyed with the idea of starting an additional consulting business with small business as an offshoot of our tax preparation business. Originally I saw a need to help small business owners gain a better internet presence. See below. But after I met with our first prospect, a long time client who is a heating and air conditioning contractor, I learned that in fact he was looking for something more. Frustrated with just doing it, doing it, everyday, he longed for something better. “How can I build my business so I don’t have to be on the job every day?” he asked. “What do I need to do to? I am not getting any younger. And it is getting tougher doing this stuff everyday. Can you help me?”
The light bulb went on. Perhaps what we need to do is look at creating an affordable results centered consulting business aimed specifically at small business owners looking for answers for their problems and are willing to pay for the privilege of not having to devote the time, trouble, or stress to doing it.
Taking a few minutes I jotted down my ideas about this new business on my handy one page business plan, spent some time with my colleague Jack Smith deciding what direction we should take, and right now we are working out the kinks with our “guinea pig” heating and air conditioning client. If things go well, this new business is something that I believe that you could benefit from. I will pass on the results in a month.
“Yellow Page usage amongst people in their, say below 50, will drop to near zero over the next five years.” — Bill Gates
The Internet has changed the business marketplace. Both for large and small businesses. If you haven’t yet discovered the power of the Google, Yahoo local, Yelp, manta....all free local Internet listings.....you need to. Your future customers have.
Successful businesses are taking advantage of a great opportunity. On May 30, 2012 Google made this very major announcement:
What this means is that the greatest marketing channel for local businesses to reach existing and new customers just got a lot better. From what I have read most small businesses have not taken advantage of it. The Internet is the great leveler. It allows you to compete on an equal footing with your very large competitors. You absolutely need an Internet web presence. No exceptions. Your customers are searching for you on the Internet. BE THERE for them to find you. Your business needs to be listed in the new and improved yellow pages....Google+ and the best part it is free. Well almost. This change by Google is in an incredible opportunity for your to promote your business.
Here is our suggestion. We know you are busy. Maybe your computer skills are a little lacking. If you haven’t claimed your listing with Google we can help. We will help you update your listing with Google and create a new dynamic page for your business. We will help you get listed on the other major local search engines like Bing and Yahoo. Our fee is just $49.00 To get started please call our office.
Things you should be doing right now. Corporate entity disregarded . . . If you want to claim the benefits of a corporation, you've got to actually use the corporation for business, not just pass funds through the corporate bank account. In one case the Tax Court disregarded the taxpayer's corporation, finding it to be a sham. The corporation observed none of the formalities of a corporate entity such as shareholder meetings, issuing stock certificates, invoices were not made out in the corporate name, etc. The Tax Court attributed all the income to the taxpayer. There can be non tax consequences too. To be sure you don't make the same mistake, we suggest you should talk to us your trusted tax adviser. We have available at no charge to active clients, all the boilerplate templates you need to keep your corporation in compliance. All you have to do is ask.
Following up on last months suggestion that you should be taking a look at your recordkeeping, I found the case John H. Schoppe (T.C. Memo. 2012-153) in which the Tax Court found the taxpayer's records were inadequate to substantiate claimed deductions. The taxpayer kept track of his daily expenses on a calendar, but with only vague notations of the amounts and payees. Auto mileage records did not include the business purpose. At trial, the calendars were not offered into evidence and witnesses the taxpayer claimed could substantiate commissions paid, were not called. The Court also noted it had no reasonable basis for applying the Cohan rule. The Court sided with the IRS in disallowing the deductions. What is the best way to beat the IRS? Keep good ironclad records.
Laurie Elzerman will be out of the office July 27th to August 6.
As a reminder we are open weekdays with a much earlier closing time that is based more on work flow than the clock. We are still available to meet with you evenings and weekends. The only thing we ask is that you call us for an appointment.
I think I found the answer. Or should I say the answers. For the next few months we will continue to share with you some of the things that our clients are doing today to be more successful.
Last month we talked about what the really good businesses were doing right. And it started with a simple one page business plan. Your written plan describes your business, outlines your goals and serves as a roadmap for future activities— everything from handling unforeseen complications to repaying borrowed money. It's a document that should grow with your business, undergoing constant tweaks as your big idea evolves from a concept into a successful company.
Did you take time to fill it out? I did. And it helps.
I have toyed with the idea of starting an additional consulting business with small business as an offshoot of our tax preparation business. Originally I saw a need to help small business owners gain a better internet presence. See below. But after I met with our first prospect, a long time client who is a heating and air conditioning contractor, I learned that in fact he was looking for something more. Frustrated with just doing it, doing it, everyday, he longed for something better. “How can I build my business so I don’t have to be on the job every day?” he asked. “What do I need to do to? I am not getting any younger. And it is getting tougher doing this stuff everyday. Can you help me?”
The light bulb went on. Perhaps what we need to do is look at creating an affordable results centered consulting business aimed specifically at small business owners looking for answers for their problems and are willing to pay for the privilege of not having to devote the time, trouble, or stress to doing it.
Taking a few minutes I jotted down my ideas about this new business on my handy one page business plan, spent some time with my colleague Jack Smith deciding what direction we should take, and right now we are working out the kinks with our “guinea pig” heating and air conditioning client. If things go well, this new business is something that I believe that you could benefit from. I will pass on the results in a month.
“Yellow Page usage amongst people in their, say below 50, will drop to near zero over the next five years.” — Bill Gates
The Internet has changed the business marketplace. Both for large and small businesses. If you haven’t yet discovered the power of the Google, Yahoo local, Yelp, manta....all free local Internet listings.....you need to. Your future customers have.
Successful businesses are taking advantage of a great opportunity. On May 30, 2012 Google made this very major announcement:
Today,
we’re rolling out Google+ Local, a simple way to discover and share
local information featuring Zagat scores and recommendations from people
you trust in Google+. Google+ Local helps people like my husband turn a
craving—“Wow, I need brunch”—into an afternoon outing: “Perfect,
there’s a dim sum place with great reviews just two blocks from here.
Let’s go.” It’s integrated into Search, Maps and mobile and available as
a new tab in Google+—creating one simple experience across Google.
Local information integrated across Google
From
the new “Local” tab on the left-hand side of Google+, you can search
for specific places or browse for ones that fit your mood. If you click
on a restaurant, or a museum (or whatever), you’ll be taken to a local
Google+ page that includes photos, Zagat scores and summaries, reviews
from people you know, and other useful information like address and
opening hours....
Google+
Local is also integrated across other products you already use every
day. If you’re looking for a place on Search or Maps, you get the same
great local information there too. You can also take it on the go with
Google Maps for mobile on your Android device, and soon on iOS
devices....
Today
is just the first step, and you’ll see more updates in the coming
months. If you’re a business owner, you can continue to manage your
local listing information via Google Places for Business. Soon we’ll
make it even easier for business owners to manage their listings on
Google and to take full advantage of the social features provided by
local Google+ pages. Get more information on our Google and Your
Business Blog.
What this means is that the greatest marketing channel for local businesses to reach existing and new customers just got a lot better. From what I have read most small businesses have not taken advantage of it. The Internet is the great leveler. It allows you to compete on an equal footing with your very large competitors. You absolutely need an Internet web presence. No exceptions. Your customers are searching for you on the Internet. BE THERE for them to find you. Your business needs to be listed in the new and improved yellow pages....Google+ and the best part it is free. Well almost. This change by Google is in an incredible opportunity for your to promote your business.
Here is our suggestion. We know you are busy. Maybe your computer skills are a little lacking. If you haven’t claimed your listing with Google we can help. We will help you update your listing with Google and create a new dynamic page for your business. We will help you get listed on the other major local search engines like Bing and Yahoo. Our fee is just $49.00 To get started please call our office.
Things you should be doing right now. Corporate entity disregarded . . . If you want to claim the benefits of a corporation, you've got to actually use the corporation for business, not just pass funds through the corporate bank account. In one case the Tax Court disregarded the taxpayer's corporation, finding it to be a sham. The corporation observed none of the formalities of a corporate entity such as shareholder meetings, issuing stock certificates, invoices were not made out in the corporate name, etc. The Tax Court attributed all the income to the taxpayer. There can be non tax consequences too. To be sure you don't make the same mistake, we suggest you should talk to us your trusted tax adviser. We have available at no charge to active clients, all the boilerplate templates you need to keep your corporation in compliance. All you have to do is ask.
Following up on last months suggestion that you should be taking a look at your recordkeeping, I found the case John H. Schoppe (T.C. Memo. 2012-153) in which the Tax Court found the taxpayer's records were inadequate to substantiate claimed deductions. The taxpayer kept track of his daily expenses on a calendar, but with only vague notations of the amounts and payees. Auto mileage records did not include the business purpose. At trial, the calendars were not offered into evidence and witnesses the taxpayer claimed could substantiate commissions paid, were not called. The Court also noted it had no reasonable basis for applying the Cohan rule. The Court sided with the IRS in disallowing the deductions. What is the best way to beat the IRS? Keep good ironclad records.
Laurie Elzerman will be out of the office July 27th to August 6.
As a reminder we are open weekdays with a much earlier closing time that is based more on work flow than the clock. We are still available to meet with you evenings and weekends. The only thing we ask is that you call us for an appointment.
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