November, 2012 | BizSieve.com

Your Viable Service: Maximum vs Minimum

The way in which you market yourself is obviously an integral part of your business. You can’t rely on jobs just falling into your lap of their own accord, you need to go out there and pull them in. There are plenty of different techniques and styles of marketing, but there is an underlying choice you have to make first before bombarding the world with your amazing adverts and website. This is all based on the viable services you are able to offer. Do you want to stick to one specific part of your field, or do you want to be able to offer as much as you’re able to do. Let’s look and the advantages and disadvantages of both.

wedding photography niche — Wedding photography – an example of minimum viable service. Image by Mike Baird / Flickr

Offering a minimum viable service can easily be summed up by a photographer who chooses solely to do wedding photography. Essentially, rather than being a something (copywriter, filmmaker, composer) you are a type of something (product copywriter, documentary maker, film music composer).

One of the benefits of this is that you’ll find it much easier to build a portfolio. If you’re concentrating on one field then you don’t need to show a wide range of examples. Get a few jobs and your portfolio will already be looking great. It is a lot more focused too. Prospective clients will be able to get a much clearer picture of your style and vision this way.

You’ll also find it much, much easier to market yourself. Your website and adverts will concentrate on the one thing you offer and that means you can target your marketing much more efficiently. Rather than advertising across a broad selection of sites and publications, you can now just pick out the ones that are relevant.

Of course, there are some downsides. First up is actually deciding on the specific service you want to offer. If it isn’t something you’ve thought about, it may take some time to really decide. There is also a bit of trial and error in this too as you try out services which just don’t work for you. Time is valuable and you can end up wasting a lot of time trying to figure out what you want to do.

Once you have decided on what you’ll offer, prepare yourself for letting jobs that you can do pass by. You might see an advert on Gumtree for something you know you could do really well, but as soon as you show your client a portfolio concentrating on something else, they’ll be put off and consider you unfocused. On top of that, taking on other types of jobs defeats the whole point of offering a minimum viable service.

On the other side of the coin you could decide to other a wide range of services. This means, for example, that as a photographer you will make yourself available for any kind of job you can do, be it band, sport, nature or press photography.

One advantage is quite obvious. Advertising yourself as a photographer with wide-ranging skills means you have a bigger pool of clients to attract. This should mean more business for you and the ability to build up a very varied portfolio. Another little positive is that you might be able to get those more niche or obscure jobs that appear from time to time. The people advertising these jobs are likely to more interested in someone who has a varied skill set.

There’s a phrase that is quite relevant to this. “Jack of all trades, but master of none.” Simply put, some people will want a specialist for their job. To them, this is paramount, no matter how good your portfolio is. They don’t want to take any risk so they want the person they hire to be a safe bet. They won’t see you as a photographer, so much as an ‘all-round photographer’ which, unfortunately, just doesn’t sound good.

Have a good think about how you want to approach your marketing. Both ways have their pros and cons and it is simply down to your preference. Choose wisely!

About the Author: Joshua Danton Boyd is an in-house copywriter for the online accounting firm Crunch. He also regularly contributes to Freelance Advisor and Urban Times.

3 Ways Taxes Could Change for Small Businesses in 2013

The big problem for small businesses planning for tax changes in 2013 is that almost everyone doesn’t really know what will happen until January 2013. Congress and the President struck a budget deal in 2012 that essentially imposed spending cuts and tax hikes that take effect in 2013 if they can’t come to a better deal legislatively. In addition, the tax cuts from President George W. Bush also expire in January. So for many, if nothing is done, 2013 represents a major set of tax changes, including impacts on small businesses.

Sole Proprietors and Schedule C

Many micro-businesses and small businesses are owned by one person and the related taxes are declared as a Schedule C business on the owner’s personal income tax returns. That in turn causes the businesses net taxable income to become part of the owner’s personal, taxable income.

The Bush era tax cuts, mentioned above, were time-limited, but they created significant savings for personal tax return filers. This included lower tax brackets on personal income as well adjustments of the alternative minimum tax to avoid its dreaded hit on the average income earner. So just by doing nothing, Congress and the President in 2013 can essentially allow a tax increase on personal income, jumping from 35% to 39.6% on income earners over $200,000 and $250,000 if married. For those owning a business, it’s very likely that they would be hit by this tax increase, especially given the partisan positions in Washington D.C. at the end of 2012.

Foreign Account Impacts

Given the flexibility of the Internet, many small businesses are doing and earning from business overseas. For some, such business activity can involve using and working with foreign financial institutions and setting up bank accounts overseas. 2013 will authorize a 2014 implementation of new tax rules on deposits made, transferring funds out of the U.S. Funds transferred will be subject to a painful withholding amount of 30% unless involved businesses provide all the required tax identification information and location of overseas accounts on tax returns. This allows the IRS to collect all applicable taxes on income earned by U.S. taxpayers, even if earned overseas.

Deduction Changes

Many small businesses take advantage of Section 179 asset deductions, which essentially allow a business to write off certain asset purchases in total in one tax year rather than depreciating the cost over five years or longer. The limit on this deduction option is $139,000. However, in 2013 this powerful and useful small business tax savings will be serious limited. First off, computer software won’t be an allowable asset expense anymore. Second, the maximum allowable deduction of Section 179 assets will be capped at a far lower amount of $25,000. For any small business relying on these deductions to purchase valuable equipment, tools, assets and more, this change represents a serious loss on tax returns. As a result, if there is anything to buy for a business, many small companies should be making those purchases in 2012 before the end of the year.

In Summary

Many will advise businesses should continue to make their decisions as needed, regardless of tax rule changes. If a business’ profit margin is so thin that the above tax changes create losses, that business needs to change how it pursues revenues and sales quickly or it will be facing bankruptcy fairly soon. That said, the above changes will reduce profit margins regardless, hitting small businesses in their own unique way. So here’s hoping Congress actually tries to get along for a change before January 2013; everybody’s taxes depend on it.

Walt Douglas is a corporate accountant and guest author at Best Accounting Schools, a site with guides and resources to help prospective students review top-rated online accounting degree programs.

Using Kiosks to Develop Small Business

Kiosks have been around since 1977. Since then, kiosks haven been used globally for interactive photos and internet portals. You’ve seen how the kiosk helps larger businesses. Airlines, grocery stores, and other retailers use them to help cut down on employee costs and processing times for customers. The companies spend less and customers save time. It’s a win-win situation. You may have thought that kiosks are meant for big businesses with a large clientele, but kiosks can be just as helpful for small businesses. You don’t need a high-volume flow in order to take advantage of the kiosk’s many perks. Here are several ways that small businesses benefit from kiosks.

1. 24-hour services without employees

If you wish you could provide services for more hours of the day, consider the kiosk as a way to meet customer needs for longer hours and your need to cut back on employee hours. A kiosk could be used to help customers with making orders or payments without any human help.

2. Vending works just fine

If your company sells standardized products, consider a vending machine. If you’ve seen iPhones sold in kiosks at the airport, you’ve seen that even high-priced items can have their place in a vending machine.

3. Be in two places at once

If you’re on the brink of opening a second location but just can’t quite meet the budget requirements, you may consider setting up a kiosk instead. A kiosk could open up a clientele demographic by being available in an area that’s not close to your original location. Even if you sell larger items, you can still take mail or delivery orders through the kiosk. You cut back on rent, employee, and insurance costs.

4. Address routine procedure needs

If customers need to consistently manage their accounts, kiosks can address those needs and make your services more convenient than the competition’s services.

5. Share advice with clients

You don’t have to train your employees to have a Ph.D. in your product. Instead, invest in a kiosk that can be set up in your store. For example, multiple U.S. wine stores use wine advice kiosks to inform customers on wine purchases. Customers are able to scan a bar code from wine bottles that reveal the details of the wine — food pairings, seasonal information, and background can be accessed. You can even cross-sell other products, which makes it possible to cross advertise with other businesses. Especially if you have several product choices, a kiosk can help consumers feel confident in their selections.

6. Job applications

If you have too much on your plate with customers, partners, and you have limited employee help, you can use the kiosk as a built-in HR department. The kiosk can take job applications and help to keep records.

7. Receptionist replacement

Just look at how many grocery store customers prefer the self-service check-out lines. People are less and less interested in dealing with a human face. Humanists may take this personally, but technology marches on. If you could provide the services of a receptionist without the price of receptionist’s salary, you could save a lot of money. Since customers are more and more comfortable with computers, this is a real possibility.

Today’s economy invites small businesses to get innovative and it rewards innovation. Think outside the box by getting your own box. The kiosk system is just getting tapped into and you could be the next beneficiary of technology’s benefits.

About the Author: Haley Brown writes for several business sites. Check out Phoenixkiosk website to get information on desktop kiosks for your business.

Why You Should Consider Hiring Freelancers for Your Small Business

Small businesses often tend to be one-person operations as entrepreneurs try to take on all the responsibilities in order to save as much money as possible. Employees are often limited to family and close friends or just an extra hand or two to help out.

However, small businesses can benefit greatly from hiring on employees, who can help their operations grow more quickly. For small businesses on a budget — which is most of them — freelancers can fill this role for less cost. Here are just a few of the reasons why you should consider hiring freelancers for your small business:

hire us
Image by Dita Margarita

Experience for Less

With a freelancer, you pay by the hour or by the project, allowing you to spend far less for the same experience you would get in a much more expensive employee. You would have to pay a high salary to get the same level of experience in an employee. By hiring a freelancer, you can get the skill and experience your company needs for less.

Not Responsible for Benefits

Salary is only one part of the expense of employees. Typically, you would also need to pay for benefits such as a portion of health insurance premiums, a contribution towards a 401(k) or other retirement account, and paid time off. You would also be responsible for paying a portion of the employee’s taxes. When you hire a freelancer, you don’t have to pay for any of these items — which can nearly double the cost of an employee’s pay package in some cases.

Pay Only for Results

When you hire a full-time employee, you may end up paying for a certain amount of clock watching. With a freelancer, you only pay for results. Even if a freelancer charges you by the hour, you pay by the job, so you can more easily calculate whether the hours reported for the job seem reasonable. However, most often, you will pay a flat fee for the project, so you won’t have to worry about how many hours were put into the job.

Little Risk

Freelancers work on a contract basis. That means that you aren’t bound by a contract and you don’t have any obligation to the freelancer, other than to pay for the job. That means that there is less risk. If you have a problem with an employee, you may have to go through a drawn-out process of filing reports and attempting mediation before you can finally fire the person. In the process, you will lose money and productivity. You don’t face that risk with a freelancer. If you are dissatisfied with a freelancer’s work, you just don’t hire that person again.

Freelance workers offer small businesses all the benefits of full-time employees without the same risk and without costing as much in salary and benefits. If your small business is not already using freelancers, it’s time you look into hiring them to help your business grow.

Do you work with freelancers for your small business? Share your tips for success in the comments!

About the Author: Sarah Clare is a writer and oversees the site projectmanagementsoftware.com, where she has recently been researching project manager software. In her spare time, Sarah enjoys cooking and scrapbooking.

Building a Wireless Internet Connection for Your Small Business

Your business is already expanding these days. Although you started out with only a few people that have been working at home, now you have a few teams that share an office space with. In order to have these employees connected, you could opt to spend thousands in hiring a construction and IT consultant crew to have Ethernet cables strung throughout floorboards and ceilings. A less expensive way however is setting up a wireless network that is simple and allows you to use inexpensive equipment as well. As an added bonus, your employees will be able to share files, printers and Internet connectivity without having to be chained to each other.

One of the first things that an office requires is having an Internet connection. For those interested in this, you will have to do your own research and find out what the service providers can do for you. This can include their various plan options.

wireless internet
Image by John Taylor

There are also cases wherein people are only stuck to going for a single provider available in their area. While those in others, they may be able to choose from DSL, fiber optic, T1 and cable Internet providers. The T1 lines will typically give users a better upload and download speed but the technology that has been chosen will actually depend on the bandwidth guaranteed by the service provider.

You should purchase a bandwidth length from a reliable business internet provider based on the job functions of your employee as well as their habits at work. Business owners should allocate at least 100 Kbps for each user. If you have 30 users in your company, that would amount to 3Mbps downloads. But if you have workers who are doing a lot of their work within the cloud or are sending in large files, you will have to ensure that their upload speeds are equally close to the download speed. The T1 lines usually offer upload speeds that are good but are more expensive than DSL or cable Internet.

When it comes to selecting a router, choose one that utilizes 802.11n technology in order to make the most out of maximum range and speed as well as having a built-in firewall. It will also support WPA encryption at the least. Aside from that, you should make sure that the router will allow enough virtual private network connections so that the employees will be able to access their resources in the network while they are traveling. One of the most affordable choices for small businesses is that of the Cisco RV 120W, having 802.11n, SP1 firewall and can support up to 10 VPN connections simultaneously.

You should also never forgo leaving your wireless network unsecured as the hackers or neighbors can steal your bandwidth connection and utilize your sensitive data. You should avoid going for WEP encryption that is outdated, as this is just as similar to having no security at all. Since it will be easier to modify, people who will have WEP encryption can easily break through it if they so wish. One can find programs out there that can do this that is why you should not forgo this temptation.

About the Author: Find out what broadband packages are available in your area and compare speeds and pricing on Broadband Expert.