Debt Ceiling
Received this in my email. Not sure who the author is. Liked it and thought I would pass it along;
This rather brilliantly cuts thru all the political doublespeak we get. It puts it into a much better perspective and is the same for many countries in Europe …
Why the U.S. was downgraded:
* U.S. Tax revenue: $2,170,000,000,000
* Fed budget: $3,820,000,000,000
* New debt: $ 1,650,000,000,000
* National debt: $14,271,000,000,000
* Recent budget cuts: $ 38,500,000,000Let’s now remove 8 zeros and pretend it’s a household budget:
* Annual family income: $21,700
* Money the family spent: $38,200
* New debt on the credit card: $16,500
* Outstanding balance on the credit card: $142,710
* Total budget cuts: $385Got It ?????
OK now Lesson # 2: Here’s another way to look at the Debt Ceiling:
Let’s say, You come home from work and find there has been a sewer
backup in your neighborhood….and your home has sewage all the way up to your ceilings.What do you think you should do ……
Raise the ceilings, or pump out the crap?
Your choice is coming Nov. 2012
IRS Offers Top 10 Tax-Time Tips
Directly from the IRS – It is that time again – unforuntately. Be diligent and protect your assets and your business:
IRS TAX TIP 2012-01, January 03, 2012
The income tax filing season has begun and important tax documents should be arriving in your mailbox. Even though your return is not due until April, you can make tax time easier on yourself with an early start. Here are the Internal Revenue Service’s top 10 tips to ensure a smooth tax-filing process.
1. Gather your records Round up any documents you’ll need when filing your taxes: receipts, canceled checks and other documents that support income or deductions you’re claiming on your return.
2. Be on the lookout W-2s and 1099s will be coming soon; you’ll need these to file your tax return.
3. Have a question? Use the Interactive Tax Assistant available on the IRS website to find answers to your tax questions about credits, deductions, general filing questions and more.
4. Use Free File Let Free File do the hard work for you with brand-name tax software or online fillable forms. It’s available exclusively at www.irs.gov. Everyone can find an option to prepare their tax return and e-file it for free. If you made $57,000 or less, you qualify to use free tax software offered through a private-public partnership with manufacturers. If you made more or are comfortable preparing your own tax return, there’s Free File Fillable Forms, the electronic versions of IRS paper forms. Visit www.irs.gov/freefile to review your options.
5. Try IRS e-file IRS e-file is the safe, easy and most common way to file a tax return. Last year, 79 percent of taxpayers – 106 million people – used IRS e-file. Many tax preparers are now required to use e-file. If you owe taxes, you have payment options to file immediately and pay by the tax deadline. Best of all, the IRS issues refunds to 98 percent of electronic filers by direct deposit within 14 days, if there are no problems, and some may be issued in as few as 10 days.
6. Consider other filing options There are many options for filing your tax return. You can prepare it yourself or go to a tax preparer. You may be eligible for free face-to-face help at a volunteer site. Give yourself time to weigh all the options and find the one that best suits your needs.
7. Consider direct deposit If you elect to have your refund directly deposited into your bank account, you’ll receive it faster than a paper check in the mail.
8. Visit the official IRS website often The IRS website at www.irs.gov is a great place to find everything you need to file your tax return: forms, publications, tips, answers to frequently asked questions and updates on tax law changes.
9. Remember this number: 17 Check out IRS Publication 17, Your Federal Income Tax, on the IRS website. It’s a comprehensive resource for taxpayers, highlighting everything you’ll need to know when filing your return.
10. Review! Review! Review! Don’t rush. We all make mistakes when we rush. Mistakes slow down the processing of your return. Be sure to double check all the Social Security numbers and math calculations on your return as these are the most common errors. Don’t panic! If you run into a problem, remember the IRS is here to help. Start with www.irs.gov.
Don’t put this off – your taxes are something you should think about all year long – not to ensure that you pay but to ensure that you protect yourself and don’t over pay.
Have a great year from Business Money Today
Resources for Veterans
With the draw down of troops inIraq, there are a lot of returning soldiers that need jobs to support themselves and their families. But, these soldiers also bring mad skills with them from management (supervisory) to loyalty and dedication – all with an extremely high work ethic. The can both lead and follow as needed.
If you are in the market to hire and want to make sure you make a great decision then:
1) Hire a veteran, and
2) Use the latest incentive from the federal government (see below).
This will create a true win-win for all involved.
Work Opportunity Credit
Expanded Tax Credit for Hiring Unemployed Veterans
The work opportunity credit has been expanded to provide employers with new incentives to hire certain unemployed veterans.
On November 21, 2011, the President signed into law the VOW to Hire Heroes Act of 2011. This new law provides an expanded work opportunity tax credit to businesses that hire eligible unemployed veterans and for the first time also makes part of the credit available to tax-exempt organizations. Businesses claim the credit as part of the general business credit and tax-exempt organizations claim it against their payroll tax liability.
The credit is available for eligible unemployed veterans who begin work on or after November 22, 2011, and before January 1, 2013. More information will be posted soon.
For the latest information about Form 5884 and its instructions, go to <a href=”www.IRS.gov/form5884″>www.IRS.gov/form5884</a>. For the latest information about Form 8850, go to <a href=”www.IRS.gov/form8850″>www.IRS.gov/form8850</a>.
For those of that went before – any help you can provide a returning veteran - is greatly appraciaated and will be returned to you a hundred times fold though hard work and loyalty.
Remembering Our Veterans!
What’s The Point?
On this Veterans Day, please remember:
It is the Veteran, not the preacher,
who has given you freedom of religion.
It is the Veteran, not the reporter,
who has given you freedom of the press.
It is the Veteran, not the poet,
who has given you freedom of speech.
It is the Veteran, not the liberal protesters,
who has given you freedom to assemble.
It is the Veteran, not the lawyer,
who has given you the right to a fair trail.
It is the Veteran, not the politician,
who has given you the right to vote.
It is the Veteran, who salutes the Flag,
who serves under the Flag.
Let us honor them all on this day.
…that is the Point.
From Business Money Today – We say thank you!
Small Businesses and Managing Their Cash
Came across this great article about how small businesses can manage their company and operations to avoid getting themselves into a cash crisis.
Far too many businesses these days struggle with their cash management – forcing many good businesses to close up shop. You have heard the term “growing your business broke” – well it is a term that many entrepreneurs know by heart.
In this article, the author outlines several methods that all businesses can use “to protect your company’s precious cash life line.”
No. 1: Respect cash flow forecasting. When entrepreneurs come up with a new product or service idea, it is customary for them to estimate the size of the customer market, check out competitors and design the final product in such a way to maximize profitability and customer appeal. Smarter entrepreneurs consider the timing of cash needs in their planning too. If the balance of incoming and outgoing cash is too tight, they have time to alter their plans to avoid a cash flow crisis.
No. 2: Limit exposure to high-risk customers. Are your largest customers also your company’s slowest paying customers? If so, take immediate steps to diversify the customer mix to favor faster paying customers. Sales commission payments should be tied to the timing of customer collections too.
No. 3: Bill frequently. Most service-oriented businesses bill on a monthly basis or at the end of a project. Why not bill customers every week or every two weeks in the form of progress payments? The faster companies invoice customers, the faster they get paid.
No. 4: Reduce dependence on a single funding source. As too many entrepreneurs have learned, it’s relatively easy for banks to pull credit lines when companies can least afford it. To minimize the risks of sudden cash shortfalls, smart entrepreneurs set aside one or two credit cards for emergencies. More established companies maintain relationships with multiple banks and take every opportunity to network to credit officers from big and small banks.
The first time a lending officer learns about your company should not be the day you are desperate for cash. If you don’t know the names of at least four bank credit officers, ask your business colleagues for referrals now!
No. 5: Streamline product lines. Entrepreneurs who don’t have a lot of loose cash should avoid producing too many products in too many styles to sell to too many different types of customers. The more complex a company’s product line, the more cash that is required to produce, store, advertise and deliver goods to customers.
No. 6: Set high profitability standards. The companies that are most vulnerable to financial heartaches during a recession or credit crisis are low profit margin businesses. Simply stated, low margin businesses have no margin for error. Don’t be shy about axing products or services that don’t match or exceed your industry’s average profit margins.
Could not have said this better myself. Remember that growing a business is not about what you, the business owner, can take out of it (as that will come). But, growing a business is doing (managing) what is right to get your business to that point.
What would you rather have – a few bucks in your pocket right now or a lot of cash in your pocket later after your business has made a lasting impact?
To read the entire article, visit Fox Business News.
$80 Million Per Job – Government Guaranteed Loans
The government, at the end of last month, authorized a $1.2 billion loan guarantee to SunPower – a solar energy company inCalifornia.
The loan guarantee is expected to create 300 construction jobs over the next 25 years (these will be temporary jobs stretched over a quarter of a century) and an estimated 10 to 15 permanent jobs.
If we assume that they will actually create the 15 permanent jobs, that is $80 million dollars per job created.
Forgetting about the politics here, I really do think that we could better as a country.
Here is my concern:
If we really want to create jobs in this country, and it is traditionally small businesses that create the bulk of the jobs (some 60% of all jobs) – then why not provide that $1.2 billion in loan guarantees to small businesses?
Think about it. $100,000 in loan guarantees for 12,000 small businesses ($1.2 billion divided by $100,000 = 12,000 loan guarantees).
Now, if each of these small businesses created just one (1) permanent job from receiving the guarantee – that would be 12,000 new jobs at a minimum.
Still not a great ratio of jobs per guaranteed money – but a lot better that $80 million for one job.
Also, if one or two of these businesses fail, it is still OK. If SunPower fails, that is a big time loss.
Plus, these small businesses would not only create jobs – probably more than one each – but would also help stimulate their communities – which in turn stimulates other businesses that will create more jobs.
I’m just saying, if the goal is to use taxpayer’s money to create jobs, there are better ways – put the money in the hands of the actual job creators!
3 Places To Search For A Business Loan
As banks continue to make the news about not providing loans to small businesses, more and more entrepreneurs are looking for new places to find capital – capital to help them grow or sustain their companies.
Banks are not and have never been the only place for business loans. But, banks do offer some of the lowest rates which can help in the affordability of the payments. Thus, if your business doesn’t qualify for a bank loan – then, make that your goal. Find other ways to fund your business until that point that you do qualify.
There are three (3) main places to start your business loan search:
1) Google or Similar Search Engines:
The problem here, with most of the major search engines and similar directories, is that the information is not always the most relevant. Example, your small manufacturing company is seeking a business loan to expand your operations. You search for “small business loan” and the first 5 pages of the search results relate to business cash advances.
While business cash advances may be solid business loan options, they are based on a company’s credit card receipts – something that many small manufacturing don’t have.
Thus, you waste a lot of time wading through those results.
The reason is that these business cash advance companies are very good at their SEO for key words like business loans – thus they rank high but do your business no good unless that is what you are actually looking for.
2) SBA’s Site (sba.gov):
Great site with a lot of information. However, they focus more on SBA loans and lenders then other relevant types of loans and lenders. And, most SBA loans still have to go through your bank – so you are right back in the same situation. However, the SBA’s site does offer some good resources and advice.
3) Business Money Today’s Free Search Function:
Here, business needs only to select (from drop down menus) a few criteria about their business (no personal information required). Then, they can compare business financing companies that not only have the types of loan programs your business is seeking but these companies actually want to work with you. And, you can compare them as apples to apples.
Many of these financial companies provide a certain type of business loan only and thus have programs to meet almost all businesses needs or stage of development (it is their only business after all).
There are no costs to be listed in this search function or any costs to use it – it is free all the way around.
The only requirement (requirement for those wishing to be listed) is that they are actual funders and not some fly-by-night company looking to make a quick score before moving on.
If your business is in need of a business loan but you are just not sure where to start, check out these options. You just never know how easy it really can be.
Would You Like A Business Loan With Your Caramel Macchiato?
No, this is not a loan to cover the cost of your coffee.
Starbucks is seeding a new business loan fund with $5 million. Starbuck’s customers can also donate to the program.
Starbucks, through this new business loan program called “Create Jobs For USA”, in conjunction with the Opportunity Finance Network® (OFN);
“will provide loans to underserved community businesses.”
In fact, Starbucks thinks that for every $5 in donations, the fund will leverage some 700% or $35 of financial support to these businesses.
According to CEO Howard Schultz, “We’ve got to thaw the channels of credit so that community businesses can start hiring again.”
So, if you are also looking to help your local community grow new businesses and you are a customer of Starbucks, then by all means donate as your $5 donation could really make an impact.
Or, if you are a small business in an underserved community and have no hope of securing a business loan from your local bank, this program may just be right for you.
Personally, it is nice to see Starbucks giving back a little given the price for a cup of coffee.
We at Business Money Today wish them much success in this endeavor as all small businesses can use any and all help these days – starts November 1st.
For More About This Program, Please Visit The Create Jobs For USA Site.
Can You Get A Business Loan With Bad Credit?
The answer is yes!
There are many ways to get a business loan with bad credit. In fact, there are business loans based solely on the performance of your business.
And, isn’t that what you want – a loan based on your business and not on you (the business owner)?
Some new lenders have figured out that there are missed opportunities in the small business market – strong companies that have business owners with bad credit – and thus have created new business loan products just for them.
One in particular is a Bank Statement Loan. If your business continually deposits cash into your bank account, you can factor that performance for a business loan.
These new lenders will look at your past 6 months bank statements and lend to you based on your average bank balances. No credit score required.
Thus, if your business is still generating revenue and needs a business loan but doesn’t want it based on the owner’s credit – these new loans may be worth a look.
Read more about these bad credit business loans.
Raising Capital For Your Small Business
In the market for a business loan to start or grow your new business? Well, this might be your first real business challenge – one that will make or break your company.
Accessing capital from traditional resources like banks and other financial institutions is almost out of the question these days unless you bring tons of assets and cash flow with you (some things that most new businesses or start-ups just do not have – or, if they do have them then they don’t need outside financing like business loans or working capital lines of credit).
So then, what is your business to do?
It starts with management – meaning managing the problem; just like you will eventually manage your employees, customers, suppliers, production, etc. The only real difference is that if you do this right in the beginning, you might not have to ever do it again.
Some simple tips to manage your capital raising process are:
- Understand your true needs. Don’t guest but know.
- Work with other parties who, in the end, want what you want.
- Utilize the resources and networks your already have – you just never know what you might uncover.
To see more detail on the above tips and better understand how your new or small, growing business can raise capital today, please see this Business Money Today article.
