The Small Business Owner's Manual
Everything You Need to Know to Start Up and Run Your Business
312 pages, 7 x 10, Paperback, ISBN: 1-56414-813-0
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Chapter 1 - Introduction
Chapter 2 - Beginnings of Your Small Business
A If You Need An Idea You're In Trouble!
1 Characteristics of Unique Selling Propositions
2 Developing a winning USP
TEXT BOX: Joe’s Message to Modem Company: “You’ve Got Mail – The 90’s are Over”
B A Business Plan For You Only
1 Elements of A Business Plan
a) Executive Summary
b) Description of Your Company and the Market
c) Competitive Analysis
d) Marketing and Pricing Plan
e) Develop the Unique Selling Proposition of your Small Business
f) Management
g) Operations and Development Plans
h) Milestones and Financial Estimates
i) Appendices
2 Conclusion on business plans
TEXT BOX: Joe’s Big Business Idea is Not
C Legal Forms of Business Ownership
1 Sole Proprietorships
a) Description
b) Tax Treatment
2 Partnership
a) Description
b) General Partnership
c) Limited Partnership
d) The Partnership Agreement
e) Tax Treatment
3 The Corporation (“C-Corp.”)
a) Description
(1) Limited Liability
(i) Piercing the Corporate Veil
(ii) Personal Guarantee
(iii) The Feds
(2) Tax Planning
(3) Charitable and Political Contributions
(4) Year-End
(5) Double-Taxation
(6) Perpetual Existence
(7) Formality
(8) Access To Capital and Big Deals
(9) Paperwork and Fees
b) Tax Treatment
4 Subchapter S Corporation
a) Description
b) Tax Treatment
5 Limited Liability Company (“LLC”)
a) Description
b) Tax Treatment
6 Professional Corporations
a) Description
b) Tax Treatment
7 Differing laws and many exceptions
8 Incorporating In Another State
9 How to decide on the best form of ownership
D Other Startup Matters
1 Sales tax permit
2 Employer Identification Number (EIN)
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Chapter 3 - Sales and Selling: The Oxygen Of Business
A Sales Qualifying
B Stages in the sales cycle
C Structuring your sales force and channels
1 Direct Sales Force
2 Telemarketing
3 Inside Sales
4 Agents and Field Reps
5 Business Partners
TEXT BOX: The big business partner deal that wasn’t
6 Distributors and Dealers
7 Retail
8 The Internet
9 Channel Conflict
TEXT BOX: The “Retail Store” that doesn’t want customers
D Selling to Government
1 Selling to the Federal Government
2 Selling to the State and Local Government
E Selling Internationally
F The 80/20 Rule
G Tips on hiring and managing sales people
H Just Don't Ever Stop Selling
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Chapter 4 - Marketing: Artillery for Sales
A Determine your Unique Selling Proposition
B Define your target market
C Decide upon the message to these customers
1 AIDA
a) Attention
b) Interest:
c) Desire
d) Action
2 Announcement Ads
D Choose the best media to deliver this message
1 Direct Mail
TEXT BOX: The Mailer Is Sent On November 63rd
a) What to say
b) What to send
c) Who to send it to (mailing list)
d) When to send it
2 Publicity and Public Relations
a) Sample Press Release
3 Promotional Items
TEXT BOX: Monopolizing the Show
4 Print Advertising
5 Brochures
6 Newsletters
TEXT BOX: Double-Oh Joe (or Bond, Joe Bond)
7 Spam, err... E-Mail Marketing
8 Internet Marketing
9 Yellow Pages
10 Radio, Television, CATV Ads
11 Trade Shows and Conventions
TEXT BOX: Joe Loses Out At Trade-Show To California Girls
12 Co-op advertising
13 Chamber of Commerce and Networking
14 Corporate Image and Identity
TEXT BOX: A favorite saying: “Advertising hates a void”
a) Trademarks
b) Company Name
TEXT BOX: Jose Bernstein Does Not Compute
c) Slogan
d) Logo
e) Colors
E Advertising and the law
F Budget
G Model for calculating return-on-advertising
H Writing and designing ads: in-house or outside?
I Whatever Works
Chapter 5 - Your Incredible Web Site and E-Store
A Web Site
1 Choose and register a domain name
2 Select a place to host the domain
3 Design and publish the web site
B Additional Web Site Features
C Considering an e-store
1 Access to cheap prices
2 Will Your Product Sell?
TEXT BOX: Joe turns trash to cash on eBay
3 Fast Shipping
4 Credit Card and e-payment systems
5 Ad Copy
6 Call Center
TEXT BOX: Vermont Company Gets Its Bear-ings On-Line
7 Fulfillment companies
8 Recruiting
9 Channel Conflict
10 eBay
11 Fraud, scams, and viruses
12 Sales taxes
D Setting up an e-store
TEXT BOX: Running faster but losing ground
E Promoting your products and services on the Internet
1 Search engine marketing and keyword ads
2 Natural search results, spiders, robots and crawlers
3 Web site architecture
4 Link exchanges
5 Conventional advertising
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CHAPTER 6 - Hiring and Firing, Weeding and Seeding
A Hiring The First Employees
B Timeframe of the Hiring Practice
TEXT BOX: SIDEBAR – Joe Hires Ms. Dependable
C Exempt vs. non-exempt employees
D At-Will employment
E Employee versus Contractor
1 Benefits of an independent contractor versus employee
2 IRS/FICA/FUTA treatments
3 Common law tests
4 Safe harbor rules
5 Special rules
F Writing the Job Description and Defining Requirements
G Where to Recruit New Employees
1 Local newspapers and trade publications
2 Resume file
3 The Internet
4 Ask around
TEXT BOX: Where the employees are, someone waits for…
5 Recruiters
6 Temp agencies
7 Competitors
8 Local government, universities and schools
9 Employee leasing
10 Promote current employees
H Employee documents and files
1 Application for Employment
2 Conditional Offer of Employment Letter
3 Credit and Criminal Background Checks
4 Drug Testing
5 The Employee Handbook
a) Company Background and Overview
b) Compensation
c) Outline of Benefits, Vacation, Holidays
d) General Attendance and Employee Behavior Rules
e) Recording Time and Hours Worked
f) Job Descriptions
g) Confidentiality of Information and Conflicts of Interest
h) Work For Hire
i) Grooming Requirements and Dress Code
j) Privacy and Employee Use of Company Property for Non-Business Use
k) Safety and Health
l) Sexual Harassment, Equal Opportunity
m) Alternate Dispute Resolution (“ADR”)
n) Employer Caveats
o) Proof of Receipt
6 Employment Agreement
7 U.S. Government Forms W-4, I-9 and other needed documents
I The Hiring Process
1 Review Resumes and call
TEXT BOX: Joe learns new code words
2 Interviewing Potential Employees
a) Welcome
b) Introduction
c) Interview Questions
d) Candidate Questions
e) Conclusion
TEXT BOX: The new hire celebrates by giving his boss Joe some illegal drugs
3 Reference checks
TEXT BOX: Joe’s spooky manger from the virtual ether
4 Stop, think, then make the offer
J Document all hire, fire, and other employee-related issues
K How to lose employees: resignations and terminations
1 Four Means of Employee-Employer Separation
a) Terminated With Cause
b) Terminated Without Cause
c) Resigned With Cause
d) Resigned Without Cause
2 The Termination Meeting
L Retaining and hiring HR professionals
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Chapter 7 - It’s OK to Hate Taxes
A Income Taxes
1 Description
2 Rates
3 How to pay (forms to us e)
4 When to pay
5 Minimizing business income taxes
a) Business Use of Home
b) Travel and Entertainment Expenses
c) Automobile Expense and Mileage
TEXT BOX: Joe’s Colleague Has More Mileage Than He Thought
d) Retirement Plans
(1) (401k) Plans
(2) Individual Retirement Account (IRA) Plans
(3) Medical Expenses and Insurance
(4) Archer Medical Savings Accounts (MSAs)
(5) Health Savings Accounts (HSAs)
(6) Flexible Spending Account (FSA)
e) Section 179 Depreciation Allowance
f) Additional Employee Benefits
B Sales and Use Taxes
1 Description
2 Rates
3 How to pay (forms to use)
4 When to pay (schedule)
5 How to minimize
C Payroll Taxes
1 Employer Identification Number (EIN)
2 W-4 and I-9 from new employees
3 What are Taxable Wages?
4 Form W-2, Form W-3, and Form 1096
5 FICA, Social Security and Medicare Taxes
6 Unemployment Taxes (FUTA)
TEXT BOX: Football beats payroll taxes
7 Independent Contractors, Form 1099 MISC
8 Penalties and Paying Late
9 Payroll Taxes: Getting it all done accurately and on-time
a) Do it yourself
b) Accountant or CPA
c) Automated payroll tax services
d) Quickbooks and the accounting system
D Other Small Business Taxes
1 Business Licenses and Business Tax
2 Special Permits
3 Professions and Occupations Tax
4 Excise Taxes
5 Other Local Taxes
Chapter 8 - Getting Professional Help
A Attorneys
TEXT BOX: Joe’s Euro-customer says “whoaa” to the deal
B Accounting and Certified Public Accountants (CPAs)
TEXT BOX: Joe’s Rigorous Search For a CPA
TEXT BOX: Joe’s bookkeeper studies accounting, check printing chemistry, and fraud
C Computer Expertise
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Chapter 9 - Business Insurance
A Business Insurance Agents
B Business Insurance Types:
1 Workers Compensation
2 Property
TEXT BOX: The Earthquake Hits Home
3 General Liability
4 General Medical
5 COBRA (Medical Insurance Must Be Offered To Departing Employees)
6 Directors and Officers (“D & O”)
7 Employment Practices Liability
8 Errors and Omissions
9 Product Liability
TEXT BOX: Cessna Carpet-Bombed By Product Liability Lawsuits
10 Operations In Progress and Completed Operations
11 Business Interruption
12 Short and Long Term Disability
13 “Key-Man” or Life Insurance
14 Insurance, Tax Advantages, and Cafeteria (IRS Section 125) Plans
Chapter 10 - Finding and Leasing a Business Location
A Using an Agent
B Determining the Best Location
1 What is the lease budget?
2 What Type of Location Is Best?
TEXT BOX: The Cute Little Restaurant Where Joe Eats Every Five Years
C Checklist of needed facilities and features
1 Electrical
2 Elevator Hours
3 Fire and Safety
4 Hazardous Substances
5 Hours
6 HVAC
7 Loading Dock
8 Noise
9 Number of Workers
10 Parking
11 Plumbing
12 Restrooms, Kitchens
13 Telecom
14 Satellite / Antennas
15 Shipping
16 Signage, Advertising
17 Visitors
TEXT BOX: Joe is upset as stars are born
18 Zoning Rules
D Is the Location Properly Zoned?
1 Zoning to Control Businesses
2 Zoning to Control Activities
3 Resolving Zoning Problems
E Leases for Commercial Property
1 Lease agreement terms and conditions checklist
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Chapter 11 - Finance, Banking, and Getting OPM (Other People’s Money)
A Choosing A Bank
1 Factors to consider when choosing a bank
2 The 4 C’s of credit
TEXT BOX: Joe’s Management Declines A Customer Loan Request After Meeting In A Strip Bar
B Small Business Financing Sources
1 Bank Lines of Credit Lines and Revolving Loans
2 Trade Credit
3 Personal Credit Lines and Credit Cards
4 Asset-Based Lending and Business Equipment (Collateralized Loans
5 Equipment Leasing
6 AR Factoring – Ouch!
7 AR Crunching and AP Stretching
8 SBA Loans
a) Section 7(a) Loan
b) Section 504 Loan
9 SBA Small Business Investment Companies (“SBIC”) Program
10 Venture Capital
11 Angeles: Hitting Up On Rich People Works
12 Home Equity Loans
13 Business Credit Cards?
14 Should You Offer A Personal Guarantee?
C The Loan Package
1 Requested Financing
2 Background of Company
3 Loan Application, signed
4 Marketing Materials
5 Company Management and Staffing
6 Year-to-Date Financial Statements
7 Accounts Receivable Aging
8 Accounts Payable Aging
9 Interim Financial Statements
10 Business Income Tax Returns
11 Personal Income Tax Returns
12 Personal Financial Statement of Owners
13 Business Bank Statements
14 Personal Bank Statements
15 Corporate Documents
16 Projected Financial Results (for the Next 1 to 3 Years)
17 Summary
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Chapter 12 - Offering Credit to Customers
A I Mean, Why?
B The Credit Approval Process
C What If They Don't Pay?
TEXT BOX: Joe Is Dazzled By A Dot-com Deadbeat
1 Get an attorney and go legal
2 Small claims court
D Assigning bad debts to collections agencies
Chapter 13 - Accepting Credit Cards
A Definitions
B How does the credit card transaction processing system work?
C What’s All This About “Trust”?
D Chargebacks and the credit card dispute process
1 Avoiding Chargebacks and fraud
a) Verify that the credit card belongs to the Cardholder
TEXT BOX: Joe Nabs New York Scammers; Police Are Not Excited
b) Address Verification System (AVS)
c) Fraud detection systems
d) Get signed delivery receipts
e) Ship first, then deposit
f) Be careful about international shipments
g) Don’t expect help from the authorities
TEXT BOX: Joe Outsmarts Another Credit Card Scammer
h) Inform Cardholders of returns, exchange, and warranty policies
i) Avoid a confusing seller name
j) Keep information confidential
k) IP address tracing
l) Fraud Warnings
E Responsibilities to Remain a Merchant in Good Standing
F Selecting credit card vendors
Chapter 14 - Everything You Need To Know About Computers In Just A Few Pages
A Keeping computers in perspective
TEXT BOX: Joe Meets the Jed Clampett of Computers
B Definitions
C What kind of computers are really needed?
1 What to buy
2 Where to buy
D MUST HAVE Business Computer Programs
1 Operating System
TEXT BOX: A small step forward, every day
2 Business programs
a) Word processing, spreadsheets, and more: Microsoft Office
b) E-mail
c) Internet browser
d) Antivirus
e) Programs to stop scum ware, spy ware, trash ware, trojans, malware, adware, browser hijackers, tracking components, pop-ups, data-miners, etc
TEXT BOX: Joe succumbs to scum-ad bombardment during big sales presentation
f) Contact Manager
E Protecting and maintaining IT investments
1 Rules for employees
2 Rules for Small Business owners
TEXT BOX: Joe’s gets a virus from a nice friend
3 Death to Phish
TEXT BOX: Joe no fool with Phishing
F Data Backups
TEXT BOX: Backing Up The Small Business Owners Manual
1 Hardware and Media
2 Backup Software
3 Online Backup Services
4 Data Recovery
Chapter 15 - Afterword
A Small Business COO Works A Little Too Hard
TEXT BOX: Meet me at tsbom.com