Blog

Bootstrapping Part 2

The following is an excerpt from the book Smart Business, Stupid Business, written by Diane Kennedy of US TaxAid and Megan Hughes of Smart Business Incorporation. Here are more strategies for funding your business by bootstrapping. Create a sales funnel. The sales process resembles a funnel. At the top end, the widest part, are the […]

...

Bootstrapping Pt. 1

The following is an excerpt from the book Smart Business, Stupid Business, written by Diane Kennedy of US TaxAid and Megan Hughes of Smart Business Incorporation. Most small businesses fail because of a lack of cash, one strategy to find money for your business is boostrapping. Bootstrapping is just as it sounds: the ability to […]

...

More on Creating Business Projections that Work

Probably one of the biggest challenges you’ll face as a new business owner is trying to forecast where you’ll be in the future. This can be anywhere from a few weeks to a few months, a year, or more. Learning how to accurately project your business’s cash flow will be tough, but it will most […]

...

The 7 Risks You Must Address If You Own a Business

Being a business owner can be challenging. Here are 7 risks to watch out for, plus what you can do about them 1. Does the IRS Know that You Are a Business? The IRS wants to know if you’re really running a business, especially since you can take tax deductions against any business expenses. There […]

...

Accumulated Earnings (or Retained Earnings) Tax Part 2

The following is an excerpt from the book Smart Business, Stupid Business, written by Diane Kennedy of US TaxAid and Megan Hughes of Smart Business Incorporation. There has been significant case law supporting the Bardahl formula, which basically says that accumulated earnings are the working capital of the company. The working capital, or Bardahl formula, […]

...

Accumulated Earnings (or Retained Earnings) Tax Part 1

The following is an excerpt from the book Smart Business, Stupid Business, written by Diane Kennedy of US TaxAid and Megan Hughes of Smart Business Incorporation. When a C Corporation goes over the $250,000 accumulated retained earnings cap set by the IRS, that money may become subject to something called the “retained earnings tax.” This […]

...

Creating Business Projections that Work (Pt. 2)

The following is an excerpt from the book Smart Business, Stupid Business, written by Diane Kennedy of US TaxAid and Megan Hughes of Smart Business Incorporation. Be realistic with your numbers, especially if for the worst case scenario! This isn’t where you fudge your numbers, or are overly optimistic. However don’t take the easy route […]

...

Creating Business Projections that Work (Pt. 1)

The following is an excerpt from the book Smart Business, Stupid Business, written by Diane Kennedy of US TaxAid and Megan Hughes of Smart Business Incorporation. The business term for a budget is a projection. You have a personal budget; your business has projections. They’re not exactly the same, though. Your personal budget is limited. […]

...

Building A Legacy Part 2

The following is an excerpt from the book Smart Business, Stupid Business, written by Diane Kennedy of US TaxAid and Megan Hughes of Smart Business Incorporation. Strategy #2: Earmark a portion of your profit to support causes that speak to your heart. There will come a time when your business gets through the learning curves, […]

...

Building A Legacy Part 1

The following is an excerpt from the book Smart Business, Stupid Business, written by Diane Kennedy of US TaxAid and Megan Hughes of Smart Business Incorporation. More businesses are starting now then in any other time in history. Why? It’s because people are realizing the need to take control of their own financial future. And, […]

...