Five Leadership Secrets for Challenging Times

We consistently face new and ever growing challenges in the workplace such as reorganizing, downsizing, and “left out sizing.” We are faced with the question, “How do we lead in this storm of change?” It may seem difficult at times and the decisions we make define our short-term and long-term outcomes. I will share with you five leadership techniques guaranteed to keep you on track during these difficult times. 

1 Integrity. 
I put this first because the lack of integrity will make or break you as a professional, as a leader, as a person in the long run. The lack of this will turn yesterday’s heroes in today’s villains. For example, “MCI was the apple of the business community’s eye. High revenues, high profits, and high growth; MCI was beating the competition hands down. 

Then it was discovered that there were gross accounting irregularities that accounted for the astounding profits. You see, management made a decision, “Do I continue to sustain good growth and be able to look at myself in the mirror or do I cook the accounting books and spend the rest of my time covering up this integrity deficiency? The real shame of the MCI situation was that AT&T, Sprint, and others in the industry had to cut costs and lay off thousands of employees to compete with MCI’s false numbers. The lack of integrity at MCI not only affected the company but also the livelihood of thousands and the industry as a whole. 

I was recently speaking with a recently retired City Council member who is well respected in the community. I asked her what the secret was to her success while on the council? She mentioned that one of her political adversaries said to her, “While you were on the council, I didn’t like the way you voted, but I respected the way you voted because you were consistent with your votes and had the city’s best interest in mind.” 

Ask yourself what decisions that you make are right for the long term? Be consistent in your actions, whether it is with management, your team, or your family. 

10 Amazing Ways To Jump Start Your Sales

1. Find a strategic business partner. Look for ones that have the same objective. You can trade leads, share marketing info, sell package deals, etc.
2.  Brand your name and business. You can easily do this by just writing articles and submitting them to e-zines or web sites for republishing. 
3. Start an auction on your web site. The type of auction could be related to the theme of your site. You'll draw traffic from auctioneers and bidders. 
4. Remember to take a little time out of your day or week to brainstorm. New ideas are usually the difference between success and failure. 
5. Model other successful business or people. I'm not saying out right copy them, but practice some of the same habits that have made them succeed. 
6. Take risks to improve your business. Sometimes businesses don't want to advertise unless it's free, sometimes you have to spend money to get results. 
7. Include emotional words in your advertisements. Use ones like love, security, relief, freedom, happy, satisfaction, fun, etc. 
8. Ask people online to review your web site. You can use the comments you get to improve your web site or you may turn the reviewer into a customer. 
9.  Out source part of your workload. You'll save on most employee costs. You could out source your secretarial work, accounting, marketing, etc. 
10. Combine a product and service together in a package deal. It could increase your sales. If you're selling a book, offer an hour of consulting with it. 

Accounting Methods – Cash and Accrual

When starting a business, you have to determine the method you are going to use for accounting and paying taxes. The two choices are the cash method and the accrual method. 

Cash Method 

If you are looking for simplicity, the cash method is probably your best accounting choice. Generally, income and deductions can be claimed when payment is actually received or made. This is best shown with an example. 

I open a small business and have to order business cards and stationary. I receive the products and pay the invoice on November 18, 2005. Under the cash method, I can deduct the cost on my 2005 tax return. 

Some businesses are restricted from using the cash method. C corporations may only use the cash method if they have less than $5 million in gross revenues for a particular year. Professional Service Corporations can use the cash method without limit, while farming corporations can due so if gross revenues are less than $25 million. Tax shelters are prohibited from using the cash method. 

Accrual Method 

The Accrual Method of accounting is a bit more complex. Under this method, the focus in on the date the expense is incurred, not paid. Although this may seem a small difference, it can play havoc with your books and piece of mind. 

Using our previous example, assume I order business cards and stationary on the December 18, 2005. I receive the products on December 30th, but don’t pay the invoice until January 20, 2006. When can the expense be claimed? It depends on when economic performance occurred. 

Generally, economic performance occurs when goods or services are provided to you. In the above example, economic performance would arguably occur when the business cards and stationary were delivered with the invoice on December 30th. Thus, I would be able to deduct the expense for the 2005 tax year. 

In Closing 

As you can see, the cash method is the easier of the two accounting methods. To determine the best method for your business, speak with a tax professional. 

9 things you must do to maximize your chances of obtaining a small business loan

To get approval for your small business loan application, you must be able to meet the lending criteria set down. Some organisations are more risk averse than others, and will therefore have more stringent criteria. 

To vastly increase your chances of a successful funding application, you will need to present the following information: 

1. The reason for the loan. The lender will be looking for something that fits within the normal range and expertise of your business. The amount may cover a number of items, so you will need to cover each. 

2. The amount required, and the repayment term of the small business loan you want. (e.g. $10,000 term 5 years, payable quarterly). 

3. Details of how you will repay the amount borrowed. For example, “From the increase in profits of reduced running costs of the Whizzbang Go4It” 
4. Details of security you will be able to offer to the lender. This will act as reassurance for the lender. If you’re not prepared to put up some aspect of security, then why should they? 

5. You will need to include your business plan which will serve to answer essential questions relating to management capabilities, information about the market you operate in. What kind of business you are in etc. 

6. 3 Years financial statements. You will need to present quality financial information from your accounting software, preferably signed off by your accountant or tax advisor. 

7. Latest Set of Management accounts. Again produced from your accounting software. 

8. Accounts receivables (debtors) and payables (creditors) ageing reports. 

9. Principals financial statements. – Particularly required if some form of security is necessary. 

If you are a new company, the emphasis is going to be on your business plan , and the security (also called collateral) you or your business can provide against the loan. 

You must take the time to practice presenting your case to the bank or lender to iron out any glitches. Practice on your colleagues and family (you never know, they might be so impressed, they'll invest or lend!). It may help to role play the lender and come up with as many pointy questions as possible. The more time you take the better your chances will be. (But remember, don’t fall into the analysis paralysis trap!) 

Good luck! 

7 Things to Consider Before Buying Small Business Accounting Software

The world of small business accounting software can be a minefield for any business owner. However choosing the right package is one of the most critical business decisions you will make. 

Here are the seven things you must consider before making a purchase that will help you achieve your businesses goals. 

1. Scalability 

Businesses change over time so it's critical that the small business accounting software you choose can change too. Some things that often change are the number of products and services offered and the number of employees. When you choose your package try and imaging the business in 5 years or 10 years time and how different it will be. Use this information to guide your purchase decision. It may well be better to pay a little more now for the software knowing that it can be easily 
upgraded when needed with minimum disruption and cost to your business.