Where does one look to find more optimism?  My first answer was to search out others that have it.  It is contagious.  Surround yourselves with people that speak a different language than fear, I can’t and I don’t believe.  The other part of that is my feeling that we need to give back and to be a part of something bigger than ourselves.  As my friend, Ginny put it, “being in service to others.”

Well, I’d like to share with you an organization that I am a part of that I feel represents the above – The Optimist Club of Timonium, Inc., which is a small part of Optimist International, lovingly referred to as a “Friend of Youth.”  I joined that organization over 2 years ago, and I jokingly tell people that I joined because I needed to be more optimistic.  But all jokes aside, that’s what I find by being a part of this worthwhile organization.  Although running a business full time doesn’t allow me much time to jump in with both feet, I try in my small way to be involved. 

This is part of their motto that drew me.  Check out www.timoniumoptimist.org for the rest of the story. 

“Promise Yourself . . .

            To be so strong that nothing can disturb your peace of mind.

            To talk health, happiness and prosperity to every person you meet.

            To make all your friends feel that there is something in them…….”

Many have found inspiration in “The Optimist Creed.”  In hospitals, the creed has been used to help patients recover from illness.  In locker rooms, coaches have used it to motivate their players.  It was originally published in 1912 in a book titled Your Forces and How to Use Them.  The author, Christian D. Larson, “believed that people have tremendous latent powers that could be harnessed for success with the proper attitude.”

Here is an example of only one of the many youth programs that the Optimists are committed to. 

Shop with a Cop  was developed to help make the holidays brighter for disadvantaged youngsters in Baltimore County. It is made possible by the cooperation of the Baltimore County Police Department and Optimist Clubs in the north county area. The Timonium Optimist Club was the first to participate and still takes the lead in coordinating the event and supervising the all important raising of funds. Donations are sought from businesses, organizations and individuals. 

Great opportunities to help others seldom come, but small ones surround us daily. 

Click the "Post a Comment" link below and share your story of what you do to stay optimistic and do you think being in service to others helps you in that quest?  And share what ways you choose to be in service to others and any service organizations you would like to share with others.

Meet Jerry and Janet – two amazing crafters and a client of Century Accounting for 3 years.

For Alan and I, one of the best parts of being self employed is all the wonderful and talented people we meet along with way and sometimes are lucky to have as clients too!  I wanted to give a big thanks again to Janet and Jerry Beaumont of Beaumont Pottery, located on Jarrettsville Pike in Phoenix, MD.  Check them out on www.Beaumontpottery.com.  They lovingly created our Christmas gifts this year – the “Focus on Today” mug. 

Gerard 'Jerry' Beaumont founded Beaumont Pottery, Inc. in 1970.  He spent several years as the village potter at the Strawbery Banke Museum in Portsmouth, New Hampshire, before landing in Maryland in 1998. 

Jerry began making pottery at the age of ten when his mother, Alice, took him to a ceramics studio near their home on Long Island.  Throughout high school, Jerry sold his ware in many stores.  He attended the New York School of Ceramics at Alfred University with a major in ceramic art and design.   

Something very unique to every piece of Beaumont pottery is a cross on the bottom, symbolic of the role their belief in Jesus Christ as their personal Lord and Savior.  Each piece of pottery they produce is signed with the Cross, Jerry’s initials, and the year.  You can see this on the bottom of the beautiful mugs. 

When I initially stopped by their shop back in 2009, I was so impressed with what they have created and their unique story.   Do visit their website for more of their wonderful story.  But they tell me they were also impressed when I personally showed up at their door and were able to tie together what they needed but didn’t know how to go find it in running their business.  They loved our emphasis on affordable services for a small business.  “The biggest benefit is not having to worry at the end of the year; all those rules and regulations that constantly change,” says Janet.  Together, we now keep their business on track.  Janet says she’s good at what she does, and is relieved knowing we are making sure they are taking advantage of all the tax benefits and also staying out of trouble with the IRS.  They are free to focus on their pottery!.

So, as you look back on 2011, what would you change?  I know the most popular answer would be “to do more business.”  Maybe it would be to be more organized in your financial records, or to do a better job at delegating business responsibilities.  Whatever it is, the question is now “what will you do differently” to achieve those “wishes” in 2012.  Because if you just wish for it, and do nothing differently, you will end up with the same result.

Here’s a great tool for you to use to set yourself up for success in 2012 – Primary Area Focusing.  This practice consists of the following steps:

• Identify the Primary Areas of Focus – What do you feel are the 3 most critical aspects of your business?
• Identify Goals for each of these critical areas.
• Set specific Objectives/results you want to see for each goal.
• Determine the Strategy for achieving the Objectives.
• Create the specific Tactics (action steps) that will be necessary.

Now, let’s look at these in the context of being the owner of a local, community based restaurant.

Step 1:  Primary Areas of Focus

Think of the 3 primary areas of your business.  For example, as a restaurant owner, your three areas might be Customer Relationships, Food Quality, and Customer Experience.

As a local restaurant, your primary clientele is your local community.  They are the ones who regularly frequent your restaurant.  They get to be your “raving fans” spreading the word about how much they love having a meal “in your home”.  How many of them do you know by name?  Welcoming people in to “your home” by name has them feeling welcomed and valued.  Of course, people only return when they’ve had a good food experience.  Without quality food, a restaurant will not succeed.  And finally Customer Experience – is the restaurant maintained in a way that is clean, organized, staff focused on quality service, etc.

Step 2:  Identifying Goals for each Area

Now, what specific goals will you set for each of these critical areas?  Let’s look at Customer Relationships.  One goal may be to establish/increase the number of people in your database or your Facebook Fans. 

Step 3:  What are the Objectives you wish to achieve?

Your specific objective may be to have 500 customers in your database by the end of March 2012. 

Step 4:  Determine the Strategies for Achieving your Objectives

One strategy may be to build your marketing database by offering a monthly Customer Appreciation Coupon available for download from your website when they register with you.

Step 5:  Create the Specific Tactics

• Create a slip for the wait staff to give to each customer to complete their electronic contact information.
• Post on your social media sites the availability of coupons through registering with you.
• Implement Electronic Contact slips by January 1^st.

So, I challenge you to take some time (an hour would be the minimum) and follow the 5 steps above.  This is a great way to have a clear direction and a plan for creating something greater in 2012! 

Successful planning is not in hoping things will be better.  I can sit by the phone all day and “wish” that someone will call that needs an accountant.  But I can change that by doing a variety of things that will introduce us to new clients.

It could be as simple as putting up an up-dated sign to attract business, a web-site that puts you out as an expert in your field, or attending a networking event and getting involved in the community by giving back.  We must each take the time to create a plan and to then take committed action to make it happen!

Season’s Greetings to All!

What is your breakeven point?

Most of the business owners we talk to do not know the answer to that question.  In other words, what does it cost you to operate each day - from the time you turn your lights on vs. the amount of revenue you bring in on that day?

For instance, if at the end of the day you did $1,000 in actual revenue, and on that particular day, with employees, rent, utilities, etc. it cost you $1,200 in expenses, you did not make enough money to cover your expenses.  Now, if that happens every single day for a month @ $200 in the red, 5 days a week, 4 weeks out of the month, you’re coming up short $4,000 for the month.  Then the problem arises, is it only that month, or is this a trend?  It's a scary thing that many times business owners don't want to know.  Maybe they think that if they ignore it, it will go away. Not the approach that will support a successful business or even staying in business for long.

The better approach is to first know your breakeven point.  With that knowledge you will know what action to take and when to take it based on the frequency of landing below your daily breakeven point.  If ignored, that $4,000 each month could become $48,000 by the end of the year.  If addressed when it was only $4,000, then it is likely that correction actions could have turned this around and greatly limited such result to one or two months vs. the whole year.  Knowledge is power!

So, if we had this information on a timely basis, we could focus on what the real problem(s) is:

1. Is the loss of revenue a consistent result?  What is the trend over the last year?
2. In looking at the business expenses, do they fall in line with industry averages for that type of business?
3. What is the business' cost of sales vs. total sales and are prices/fees set appropriately. 

In closing, these questions alone may raise your blood pressure, and get a familiar knot in your stomach.  After all, it's much easier to just ignore what's happening in your business and keep your figures crossed that everything works out, right?  But my argument would be, "wouldn't it be great to actually know what your breakeven point is, set and reach goals each and every month, review them with your current advisor/accountant and have your business running in the black!  And if I remember correctly, making a PROFIT in your business was the original goal when you decided to be self employed?

I'll leave you with this quote that was taken from the May/June 2011 issue of NFIB Magazine, www.mybusinessmag.com "Running a small business means expecting the unexpected."

1. That you are committed to making it work;
2. You wake up in the morning and are enthusiastic about going to “work”;
3. You believe in yourself and your “product;”
4. The glass is half full vs. half empty;
5. Although you still worry about your business, you work through your issues;
6. Your customers know that you love your work and are committed to helping them;
7. That you are always looking for ways to make your business better and are open to advice. 

Now, let’s talk about the other side of that….. are you just surviving?  You’ve got to ask yourself a lot of other questions if you answer yes to ‘you are just surviving’.  And this also tells a lot about your business.

1. You wake up every day dreading going to work;
2. You feel you have no other options, but are constantly wishing your situation would change;
3. All you think about is how to get out of what you’re doing;
4. Your customers are secondary to your concerns, worries and thoughts;
5. You keep on repeating the same pattern everyday and getting the same results; 

If the 2^nd description fits you, I have to ask you – WHAT DO YOU INTEND TO DO ABOUT IT???   If you are just surviving in your business every day, what good are you doing for yourself, your health, your well-being and ultimately your financial reality?  What happened to your dream – your business? 

My suggestion is to take a walk down memory lane (and it would help to actually write it down) and re-discover why you went into business in the first place.  If you mentally take your mind back to all the details of those months that led up to you opening your business, all the planning and excitement that went into it, the blood, sweat and tears (happily),  the relationships your developed, all the new things you learned and never did before and all the great things that were happening, it may help.  

I still remember, very vividly, the day my husband went away for a month of training before he opening the door to our very own accounting firm.  I remember missing him so much (we had never been apart that long) but I also remember lovingly setting up his first home office in our little den on the second floor of our small duplex home in Perry Hall.  We bought a used desk, a filing cabinet, painted the room, set up our business phone with a voice message for our business.  Wow!  We were really going into business for ourselves and we had goals and dreams.  It stirs up a lot of emotions about why we did choose self employment over the good old W-2 job. 

My 2^nd piece of advice is - Don’t hold it all inside and think it’s going to change.  Look for a mentor, advisor or trusted friend that you can confide in.  Be prepared before you talk to them and use the time wisely.  Don’t go to complain.  You ultimately have to make a choice to make your business thrive.  Make your current situation work and get your old enthusiasm back for your business, which requires that you stop doing the same thing that you’re doing now every single day and getting the same results.  Life is too short.  Get moving!

                                                                                                  Going back to 1991, you probably would agree that things were much different back then. 

It was the time that a gallon of gas was $1.12 and an average cost of a new house was  $120,000.  Of course the income average was only $29,430.00. 

Events that stand out in 1991 were:

Popular films included Terminator 2: Judgment Day, The Silence of the Lambs, Beauty and the Beast and Father of the Bride. 

Popular musicians during 1991 include Pearl Jam, Guns N’ Roses and Garth Brooks. 

Another major event that occurred in 1991 (August 19^th to be exact) that has made a huge impact on our world at Century Accounting and Financial Services is the hiring of Ken Hrica, CPA.  

We read everyday about major world events that for the most part don’t impact us greatly in our little corner of the world.  The real life changing experiences are the things we are a part of everyday.  Alan and I are truly grateful that Ken answered our little ad in the Baltimore Sun Paper for an intern, while he was attending Loyola College.  After graduating from Loyola, he was hired by Ernest & Young.  He passed his CPA while employed there, and returned to us in 1991 -  20 years ago.  (So really he has been with us more than 20 years!) 

Ken has grown with our company, contributed greatly to its success and stood by us through many changes and challenges during these years.  It has been said that behind every great man, is a great woman.  But we also believe behind every successful business are employees that care and commit themselves to that success.  Ken’s knowledge goes well beyond some tax laws and the stuff he learned at Loyola College.  With now more than 20 years of experience behind him, and many stories and advice that he could share, Ken is a wealth of knowledge for the small business person.  We are very happy that he continues to be a part of our team and thank him for so many things.  We hope you will join with us in congratulating Ken – Happy 20^th anniversary! 

 Be aware!  The new slogan for the Comptroller of Maryland is…..

“DON’T LET UNPAID TAXES SLOW YOU DOWN!”  What does that mean you ask?

The Motor Vehicle Administration, Department of Labor, Licensing and Regulation (DLLR) and the Comptroller are now partnering to make sure that everyone pays their fair share.  Effective June 1^st of this year (2011), Maryland state law requires that individuals and businesses that have unpaid, undisputed state tax liabilities and/or unpaid unemployment insurance contributions, satisfy the debt(s) prior to renewing a Maryland driver’s license or vehicle registration.   So be aware and make sure  your taxes are up to date.

However, there is also some good news!  The IRS has announced that the business standard mileage rate will increase to 55.5 cents a mile for all business miles from July 1, 2011, through December 31, 2011.  This is an increase of 4.5 cents a mile from the 51 cents rate for the first six months of 2011.  Check with your accountant on changes for medical and moving mileage rates. 

Being in business for one's self in today's economy is difficult to say the least.  Wouldn't you agree? And it has been reported that Maryland is not known for being "small business friendly."

DID YOU KNOW….

                        that effective July 1, 2011 the sales tax on alcoholic beverages in Maryland will be raised from the current 6% to 9%?  This will affect many small businesses in this State and their prices will have to go up to survive, which ultimately affects us all.  But that’s not all.

After reading all the rules and regulations, in order to comply with this new law, it

prompted me to focus this week’s blog on this subject.  It’s downright confusing.

DID YOU KNOW….

                        that the businesses that need to report this additional sales tax on alcoholic beverages, must report it separately from the other taxable items?  That’s not as easy as it sounds.  It means adjustments in bookkeeping set ups, computer software and calculating, filling out and filing two sales taxes (although on one form).

 DID YOU KNOW….

                        that previously businesses were able to remit their sales tax via ACH through the State?  Well, no longer.  “Businesses that have sales and/or purchases subject to the 9% rate will no longer be able to file and remit via the ACH…” Instead, you may file and pay electronically through bFile, the State’s “free” online service for businesses.

DID YOU KNOW….

                        that I’m only past Question #5 of the 26 different scenarios, explanations, and exceptions of this new law?  This will not only affect Maryland restaurants, liquor stores, but a whole variety of small businesses such as caterers, dinner theaters, wineries, and probably some I haven’t even thought of.  Rules are also different for types of organizations, ie. tax exempt status.  There are also different rules for selling food and beverages to groups of more than 10 people at a restaurant AND that impose a mandatory gratuity charge.

Anyway, this blog could go on and on, but the purpose is to advise our followers to be aware of these changes that may affect you.  If they don't affect you, we still wanted you to be educated with the never ending string of taxes that continue to be added to the small business plate.  See below link for more information and detail.

                            http://business.marylandtaxes.com/taxinfo/sut_faq.asp

 We talk to many small businesses on a daily basis.  Many of the businesses are doing great – better than ever.  However, many are struggling.  Their cash flow has been affected, business is down, expenses have increased and they are constantly looking for  ways to get out of the “rut”.   And some of these business owners have just given up. 

 I recently met with a local business coach, Gary Stokes (yes, he is related) who is part of the international Action Coach network.  Gary and I talked about the frustrations that so many small businesses are having. 

I put my 2 cents worth in by saying, as a business owner, you should have the answers to these five questions each month: 

1. How much money did I make last month?                            
2. Where did my money go?
3. How much money should I have made last month?
4. What do I have to do to make what I should be making?
5. And, am I paying the minimum taxes requires by law? 

Although these are questions business owners should have answers to each month, in order to make good business decisions.  But what if you’re not happy with the answers?  Where do you start to make changes to increase your business and make it more profitable?  

Gary suggested that to make any progress when you are not happy with the profit of your business, and to start to improve it,  we should start with only two questions:  1. How much do I want to make; and, 2. How much do I want to work?  In his coaching sessions with small businesses, he delves into a lot more detail to find answers, and the solutions, to these questions. As accountants we can figure out what your “break even point” needs to be  – How much money do you have to make each day to keep your doors open?  But Gary’s goal as a business coach is to get business owners to set goals to “break even with some level of profit” point.   Isn’t that why you are in business - to make a profit? 

So, this opens a whole other line of questions.  It can get very overwhelming for any business owner to tackle this on their own.  Gary’s advice was to start with goal setting.    But setting goals is easy (although we find that more than 50% of small business do not have a business plan or set goals).  ACHIEVING those goals, after setting them, is the bridge you have to cross.  So much of Action Coach’s philosophy is the exact information our clients need to hear.  

As an accounting firm, we strongly believe in good financial information to make informed business decisions and do proper tax planning.  However, there are ACTIONS, as a small business owner, that you need to take.  Nobody told us that being in businesswould be easy, but if you have the right experts surrounding you, your business will prosper (and be a lot more enjoyable).   Gary Stokes, from Action Coach, was a wealth of information.  I look forward to sharing more “tips” with our next blog.  I also welcome any comments.  YOU CAN ALSO CHECK OUT WWW.ACTIONCOACH.COM/GARYSTOKES FOR EVEN MORE TIPS!

"Oops!  The last week of tax season took over, so here's the next part of our interview with Courtney & Erik from Lotus Jewelry.  Also, if there is anything you would like to ask them, let me know. 

We asked, "If you could do one thing differently with your business, what would you do?  Why?"

"Thankfully, we have made wise decisions and would not change a thing!  With the right people around us, guiding our business, we have been very fortunate to grow our small business in a short amount of time." 

If you had a friend that was going into business for the first time, what piece of advice would you give them?

"Don't try and do everything  yourself.  Do what you are best at and make the most of your time.  Hire professionals to take care of the parts of your company that you find difficult.....things that took up a lot of our time and did not keep us focused on what we are really good at."

Congratulations to Courtney & Erik for working not only hard, but smart at their business.  From many years of experience, we see businesses that have a great product or service, but are missing a piece or two of the puzzle.  A great exercise is go to take our "test" on our website on the areas of your business that you are most frustrated with.  And instead of just accepting that that's the way it is, make a plan to deal with it.  Call on your most trusted advisors and get their input.  Being self-employed has many ups and downs.  Stay focused on why you went into business and you can weather any storm!