Jacquelyn Lynn Business Articles

Please Visit My Main Blog at JacquelynLynnBlog.com

For business articles, advice, and commentary, please visit my main blog at JacquelynLynnBlog.com.

Tax Planning: Deducting a Bad Debt

When a debt -- whether business or personal -- becomes uncollectible, it can be claimed as a deduction on your tax return. You do not have to wait until a debt is due to determine that it is worthless. A debt becomes worthless when there is no longer any chance the amount owed will be paid.

To deduct a bad debt, you must show that you have taken reasonable steps to collect the debt. This includes sending statements, collection letters, and making collection phone calls. Keep copies of all correspondence and make notes of all telephone calls (date, time, who you spoke with, what was said). You don't have to go to court as part of your debt collection effort if you can show the IRS that a judgment from the court would be uncollectible. The IRS considers bankruptcy of the debtor as good evidence of the worthlessness of at least part of an unsecured and unpreferred debt.

If you have debt on your books that you might want to deduct on your 2010 tax return, now is the time to make sure you meet the IRS requirements for collection efforts and that the particular type of debt qualifies under the IRS rules. Check with your accountant or tax advisor if you have any questions.

Take Your Parents to Work

Remember when your parents came to school to see what you did all day? Maybe it's time to invite them to your office so they can -- once again -- see what you do all day.

Many workers, especially those in high-tech and creative jobs, have a hard time explaining their jobs to their parents. Also, Millennium generation workers are accustomed to parents who have been very involved in their lives. A Parents' Day will let mothers and fathers see their adult children in their working environment.

Depending on your particular operation, you can either make your Parents' Day a special company-wide event, schedule it by department, or just let workers know they are welcome to bring their parents in for a visit. Consider hosting a casual lunch, a tour of the facility, and a presentation that demonstrates what you do. Allow time for parents to see your staff in action. The overall cost will be minimal, and the rewards are tremendous.

Tips for Training Senior Workers

A while back I shared some thoughts on relating to young employees. The other side of that coin is that more and more seniors are either staying in or reentering the labor market. What do you need to know about training and integrating them into your organization? These tips will help you gain the maximum benefit from having these older workers on your team:

• Get rid of your own stereotypes. Older people are not automatically senile, stubborn and set in their ways—in fact, many actually “get it” faster than their younger counterparts.

• Don’t teach them what they already know. Though many seniors, particularly women, are entering the workplace for the first time, the majority have years of experience. They have a lot of the basic jobs skills, such as getting to work on time, treating customers and others respectfully, trying to do a good job. You don’t need to teach them those things.

• Give them the time they need to learn. Older people may need more time, often up to twice as long, to learn a new task or skill, but with that additional time, they can learn to perform new tasks with fewer mistakes than younger workers. Of course, like all people, mature adults learn at different rates; if possible, implement a self-paced program.

• Create an effective learning environment. Senses, particularly sight and hearing, tend to dim with age. Be sure your training facility has adequate lighting and good acoustics, and that background noise is kept to a minimum. The trainer should check at the beginning of each session to make sure everyone can hear. Visual aids should have large, easy-to-read print with high contrast colors, and should not be posted above eye level, because many older people wearing bifocals have difficulty looking up to read. Most older workers prefer sitting in groups around a table rather than in a traditional classroom or theater-style setting. And be sure to provide frequent breaks for using rest rooms or just moving around.

• Don’t assume seniors will resist change and technology. Increasing numbers of seniors have personal computers at home and are comfortable using the internet. Also, many older workers appear inflexible when in fact they are lacking in confidence, and with training, will quickly become more adaptable and accepting of new technology.

For assistance with training seniors, or to find seniors who have completed various educational programs, contact your local area agency on aging, your public school system’s adult education department, or local senior citizens centers.

Cancel that Sales Meeting! Hold Sales Training Sessions Instead

Instead of holding regular sales meetings, consider holding sales training classes instead. And instead of having your sales manager conduct the classes, have the salespeople themselves take turns doing it.

Successful salespeople learn their craft and sharpen their skills through education. Continual reinforcement in the form of training keeps those skills in constant use. So instead of a regular sales meeting where the sales manager talks and maybe allows each salesperson to report on what they did and what they’re going to do, offer a class instead. Letting individual members of your sales team participate as trainers allows them to share their knowledge at the same time that they’re further developing their skills.

Topics covered in peer-to-peer sales training might include:

- Presentation skills.

- Prospecting techniques.

- Overcoming objections.

- Dealing with unusual situations.

- New product information.

- Pricing and estimating.

- Project management.

- Proper documentation and reporting according to company requirements.

- Goal setting and analysis.

- Using selling skills in non-selling situations.

- Time management and planning.

Keep the content positive—make it “Here’s what you can do,” not “Don’t do this.” Be encouraging and supportive and don’t let any negativity creep into the process. Talented salespeople have thought their way right out of the profession because they focused on negatives.

Be sure everyone has an equal chance to participate. One way is to put the dates of upcoming sessions on slips of paper in a container and let each salesperson draw a date to be the teacher. Or schedule alphabetically or by seniority—any way you prefer as long as it’s fair, equitable and doesn’t show favoritism. Provide guidance on choosing a topic but let team members make the final decision on what they present.

Let the sales staff decide the time and place for training sessions. The old school Monday morning or Friday afternoon meetings often cut into potentially productive sales time. Your salespeople may prefer evening, weekend, or even very early morning sessions so that the training truly enhances rather than conflicts with their sales efforts.

Sales managers know that it can be hard to get people motivated. They understand that one person can’t motivate someone else—you have to find out what’s important to that person and then lead him or her to become self-motivating.

Keep in mind that ownership can be a strong motivator. When people feel ownership, they care. And when they care, they produce results. Letting your team teach others what they know is a great way to give them a sense of ownership in the process and in the organization.

 

 

When I Pay, I'm a Customer, not a Guest

Yesterday I saw a news story about a new discount program Target is introducing (if you charge purchases on your Target card, you get a discount). The Target spokesperson referred to customers as "our guests."

I shop at Target and I like the store (especially the geeks in the electronics department) -- but when I shop there, I'm not a guest, I'm a customer! I am someone who is paying for goods and services. It does not make me feel warm and fuzzy for stores I patronize to call me a guest and then take my money at the end of the transaction. I tolerate the language from hotels and restaurants because it's traditional in the hospitality industry, but it's annoying when other merchants seem to not want to recognize my value to their business as a customer. 

Does this bug anyone else?

Interns: A Great Resource for You, Great Experience for Them

Interns: A Great Resource for You, Great Experience for Them

 

By Jacquelyn Lynn

 

Even as we begin to see signs of an economic recovery, we know that the process of returning to strong, steady growth is going to be slow. Many business owners are understandably reluctant to begin hiring additional permanent employees at this point, due to the abundance of uncertainty we see in the market. An option to consider is hiring interns.

 

Even small companies can supplement their staff with interns. You get enthusiastic, energetic workers at an affordable rate without making a long-term commitment; the interns gain valuable work experience and college credit.

 

Don’t restrict an intern’s duties to errand-running and low-level clerical work. Take advantage of the fact that, as current college students, they may possess knowledge and capabilities that your existing employees may not—such as technological skills, the latest academic methodologies, and research abilities. Let interns support your marketing and operational efforts and give them the opportunity to work in your operation as your other full-time employees do—remember that it’s not uncommon for companies to hire interns for full-time positions after graduation.

 

Recruit interns with the same care that you use when hiring regular employees. Consider their background, experience, educational level, skills, and goals, and check references. Have a plan in place to supervise them. You may be asked to complete an evaluation of the student’s performance at the end of the internship period; take the time to do this fairly, completely, and promptly.

 

Whether or not you pay interns is usually your choice. Some colleges require it; others do not. But you’ll likely get a higher caliber of intern and better performance if you provide fair compensation for their time and effort.

 

Contact nearby colleges and universities for details on their internship programs. Also, let your friends and colleagues know you are willing to consider interns—you never know who might have a qualified son or daughter attending college who will be looking for a summer job at home.

How can we boost job growth?

I received an e-mail from Chris Hurn, cofounder and CEO of Mercantile Capital Corporation in Altamonte Springs, FL. He was commenting on President Obama’s “jobs summit” and offered these suggestions to boost job growth:

 

1.  Implement a meaningful payroll tax holiday for both employers AND employees (January 1st to July 1st, or better yet, ALL of 2010). 

 

2.  Permanently abolish the capital gains tax on any investments made in eligible small businesses (fewer than $100MM or under 500 employees) during 2010.

 

3.  Repeal or drastically modify Sarbanes-Oxley, as it has only hampered business growth and hasn't done nearly as much good as was intended (I call it the "Accountant Full-Employment Act"). 

 

4.  Get health reform RIGHT -- the plans in circulation are still missing two very important things: tort reform and the ability to purchase health insurance across state lines.

 

I couldn’t have said it better.

Buying and Spending Smart: Ways to Save Money in Your Small Business

Buying and Spending Smart:

Ways to Save Money in Your Small Business

By Jacquelyn Lynn

 

Regardless of the state of the economy, it just doesn’t make sense to waste money. Savvy business owners are cost-conscious because everything you save goes right to the bottom line in the form of increased profits. Here are some great ways to pinch pennies—and even dollars—in your operation.

1. Buy used furniture. Used office furniture can be purchased for a fraction of its cost new. Check Craigslist, other online sources, newspaper ads, bankruptcy sales and even new furniture dealers who frequently have trade-ins or repossessions they’re willing to sell at deep discounts. Another great place to shop for used furniture and equipment is the surplus office at a nearby college or university. If the school doesn’t have a surplus office listed, call the main information number to find out which department handles disposing of used items.

2. Pool your purchasing power. Find other small-business owners and team up to buy supplies in bulk. You’ll save money on the cost of the materials, as well as the shipping. Don't limit group-buying partners to noncompeting companies. Consider group purchasing with businesses that offer the same or similar services as you but that perhaps target a slightly different market or geographic area. Be sure all agreements are clearly spelled out in writing. Clarify upfront who will actually make the purchase, how the goods will be delivered, when the others will reimburse the purchaser, and how any problems with quality or service are to be handled.

Facing Your Fears

Facing Your Fears

Fear is a natural feeling—but can you turn it into a tool that will propel you toward your goals or will you let it stop you in your tracks?

By Jacquelyn Lynn

What’s stopping you from doing what you want and having what you desire? With rare exceptions, when you strip away all the excuses, it’s fear—fear of doing whatever it is that you must do to achieve your goals.

Fear is one of our most basic instincts and it’s key to our survival. It’s easy to dismiss fear as cowardice, but it’s not. Rather, cowardice is just one of many possible responses to fear; courage is another. Fear itself is not necessarily bad. In fact, it serves a purpose by protecting life and helping us avoid danger.