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Sherry Tingley

Small Business Tips From Entrepreneur Kirk Taylor

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Serial entrepreneur Kirk Taylor
Kirk Taylor, Serial Entrepreneur

Entrepreneur Kirk Taylor has been successful at building many companies from scratch. As a serial entrepreneur  with experience stretching back 34 years ago, he is happy to share what he has learned to help  small business owners. Although success and building new companies is somewhat akin to riding a roller coaster. Ups and downs are bound to occur.

Working Hard

His first company project was launching and building  LimoLink, a website that catered to transportation needs for people all over the world who were seeking elegant rides.  A second company was built after that experience. It was successful enough to produce revenues of $20 million annually within a three year period of time.  The company was recognized as one of the fastest growing private companies by INC magazine. He was also awarded Entrepreneur of the year for small-midsize companies in Iowa.He reveled in sales tallying in the neighborhood of $20 million in three years.

He left the company in 2002 eager to move on to bigger and greener pastures and start on a new project.  “I’m not a CEO-type guy,” he says. “I like the starting-up phase.”  But he was wise enough to take what he’d learned in his first experiences with him, and creating new opportunities in other niches.

Seeking Opportunities

Catching on quick to an opportunity and moving double quick to get it functional is what real entrepreneurs do, Taylor says.

Kirk Taylor knew a good thing when he saw it.  “It” was the weekly ABC Shark Tank Show. Entrepreneurs who have what they are convinced is a good business idea have an opportunity to try to raise capital if their idea is appealing to the panel members.  Panel members are five recognized business geniuses who are millionaires, and billionaires ready to invest in new ideas. The panel members listen to the pitch, then offer (or don’t offer)  partnerships providing money and sometimes expertise to the entrepreneur.

Taylor assumed, rightly, that the show was going to attract a huge audience of people itching to get into business or to improve a business already established. He piggy-backed by creating a blog focused on Shark Tank’s entrepreneur interviews. Communication then opened up between Shark Tank producers and Kirk.

One of the people who has been very helpful to him is Barbara Corcoran, one of the Sharks who swims weekly in the ABC Tank.  On his blog, he interviews contestants of the show and publishes those interviews.  The blog has become very popular,” he says. “She has given me scoops regarding things that are likely to happen, but we have no direct conversation. It’s a trust relationship,” he says, “and I work hard at keeping that trust. I’m careful not to abuse it.”

Be Realistic

Over his years as a successful serial entrepreneur, Taylor has learned a thing or two (or a whole lot more) about the relative roles of idealism and realism . Without the dream, nothing happens, “But there has to be realism, too.” Most entrepreneurs, in his very educated opinion, are strong-willed people who learn to recognize that magic spot where idealism has to be set aside for the sake of facing up to the real business world.

Get Funded

The barrier that trips up many would-be businesses short of success is the money issue, he says. “Every entrepreneur has to raise capital.”  Trying to go solo on that challenge without any understanding of the  process has sunk many a newcomer to the competition. He suggests involving others who know the ropes and can find the most suitable investors to back your idea. Often the entrepreneur has friends with expertise. “Work them all.”

Small Business Mistakes

His own biggest mistakes in building companies, he admits, have been in turning too much control over to managers. When he associated himself with people who had been successful in big companies, the tendency then became to let them supplant him at the top of the decision-making pyramid. “That’s been a real disaster,” he says. It’s the entrepreneur’s life, financial well-being and ability to keep expanding that’s on the line — too much personal investment to turn it over to someone else without restraints, he has learned.

Goals

The most important goal, according to Kirk, is to get to a point in life where you and your company are completely debt free. In 2008, he turned to affiliate marketing, building yet another new source of income. “I like it,” he says. He sees “huge potential in sales with relatively low start up expenses.” He likes the independence it offers and the feeling of not being bound to others when decisions need to be made.

Should They Sell Their Home?

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Personal Finance and Home BuyingPeople get into all kinds of financial problems when they are unable to assess accurately what their incomes will allow them to buy. Examples of this are plentiful when you read forums dealing with saving money and personal finance.

In a recent forum thread, a young woman asked for advice about whether she and her husband should sell their home because they felt they were in over their heads. They have been in their new home for seven months and it dawned on them that they were having a hard time making ends meet.They explained their situation, including the current income and their living expenses

She stated that she and her husband were both gainfully employed with a combined income of $130K. She said that they had a decent income, but they felt “poor.” Their net income was $7K per month with $4,200 going towards their mortgage payment. Besides their mortgage payments, their debt was about $55K in both student loans and repayment of the loan money they borrowed to get into their home. They weren’t going into the hole every month, but they had no breathing room. They also have two very young children for whom they have to pay childcare while she works. Adding in their other expenses, the total expenses for the family is $6,770.00 per month, leaving very little room for savings or emergencies.

The important thing here is that their mortgage payment is 60% of their net monthly income. That is the main issue. The lender loaned money to them when they shouldn’t have. Somehow, we as consumers think that if a lending institution is willing to loan us the money we need, then why not do it? Even after December 2007 through June 2009, the worst recession in American history since The Great Depression, banks apparently are still loaning money to people when it is not in anyone’s best interest but the banks.

To get back to the savings forum thread, people advised the couple to cut back on spending and basically sell the house. The penny pinching that could be done by the couple is probably not worth the time or effort.

So how did this couple miss so many important economic lessons? First, somehow they felt “rich” because of their incomes. They really were erroneous in thinking that and should have gone to a good financial planner well before they started thinking about moving to their new home.
They should have been able to predict their monthly expenses prior to moving. Had they done that, they may have decided to do something different with their money. The big red flag that they missed was knowing that they had to borrow money for their down payment. That alone should have put the brakes on this home purchase.

What makes one rich is creating a strategic long term plan and then following through with it. Getting good financial advice about any purchase that will impact your for over four years is a good idea. Financial education is a life-long process and luckily we can learn from our own mistakes and benefit from the wisdom of others. What do you think this couple should have done?

20 Ways To Save Money This Summer

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Sometimes when the thermometer goes up, your living costs do likewise. A bit of careful planning and creative budgeting can keep costs under control while adding to your enjoyment of the season. Here are twenty ways to cut costs and make summer your favorite season of the year.

  1. Turn off the air-conditioning when it’s feasible, depending on where you live and how hot it gets. Keep tabs on weather reports and if there is any cooling forecast, make adjustments. Open windows to take advantage of cool air in the early morning and evening and use portable fans or ceiling fans to cool small areas. If you really need an air conditioner, the Department of Energy suggests an Energy Star model with fan and programmable thermostat. Mount air conditioning units in shaded windows and keep electrical appliances, including lamps, as far as possible from the unit.
  2. Cook outside. Stove tops and ovens create lots of heat that has nowhere to go. Barbeque cooking is particularly appealing to many families any way, and a huge variety of recipes is available online. Try something new!
  3. If your situation allows, dry laundry outside. Not only will you be spared the price of gas or electricity to do the job, you may find your laundry has a nice fresh air scent. Small drying racks are readily available and may be all you need if your family is small.
  4. Replace your air conditioning filters. A dirty filter can increase cooling costs by restricting airflow, causing longer run times and higher costs. Filters are not expensive, so change them frequently.
  5. Take advantage of summer-end sales to prepare for the next gardening and yard work season. Sales generally begin on landscape plants, bulbs and gardening tools just as the height of summer passes.
  6. Instead of investing in summer clothing that you’ll wear for a short time, hold a clothing exchange with family and/or friends. If you prefer new, the sales on sundresses, shorts, swimsuits and other summer wear usually begin in mid-season, giving you plenty of time to tog out in your new duds before autumn begins. Watch for sales on non-clothing items such as sunglasses and tote bags.
  7. Don’t think you have to leave town for entertainment. Visit the websites for local pools, hiking sites, sports venues (you might enjoy local youth sports as well as you would the majors.) The tendency is to overlook community theater and local sites such as zoos, aquariums, art galleries and other opportunities for family outings. If there is a university in your area, check to see if they offer special opportunities for children or youth. You can Google “free events,” adding your city, for a list of local entertainment opportunities. Many communities have home-town celebrations in the summer and you could spend weeks hitting fun-filled local events with very little overlap.
  8. If an out-of-town trip is on the summer agenda, check with the motel or hotel to see if they provide in-room refrigerators and microwaves service so you can cut down on the number of restaurant meals. Stock up on microwave meals, popcorn, etc., to pack for the trip.
  9. Take short showers to conserve on water and energy. Less than 10 minutes, ideally with a low-flow shower head, can save up to 20,000 gallons of water a year, according to the Environmental Protection Agency.
  10. If you enjoy expanding your education, summer is the time to do it. Many school districts, colleges and universities offer half-price courses during the summer season when many of their regular students take a break. You’ll likely find yourself with other lifetime students who are there to learn in earnest.
  11. Instead of laying out big bucks to keep the ice cream coming, consider treats from frozen fruits pureed and re-frozen in ice pop molds, plastic cups or in a bowl to dip out as needed. Throw in a bit of yogurt and increase the nutritional value. The same holds true of the expensive iced tea that you can stockpile at great cost. A simple recipe for “sun tea” calls for four large tea bags emptied into a pitcher or jar full of water. Let is stand outside for three hours. When you want to use it, dilute with water to taste, add a little lemon and sugar and voila! Refrigerate what’s left in clean soft-drink bottles . Ditto iced coffee, which you can make by freezing left-over coffee in trays then blending with liquid creamer and ice cubes.
  12. Plan a yard or garage sale. Many bargain-hunters take advantage of summer weekends to snarf up items of interest. De-cluttering your house is easier when the weather is warm. You may be able to interest neighbors, friends or family in a joint sale that is likely to attract more potential buyers.
  13. Head for a farmers’ market if such are available in your area, instead of the grocery store. Farm-fresh produce such as spinach, cucumbers, tomatoes, string beans and peppers make a super salad for a warm-day meal at a price much below what you’d pay at the store. And if the farm outlet offers flowers to give your house a summer pick-me-up, so much the better.
  14. The fireworks season is dead ahead, but you can save money and avoid products that are banned in many communities by celebrating with reusable rocket balloons (often selling for 79 for $20) or glow sticks that may spare little fingers from sparkler burns and cost, in general, just a dollar each. Most communities have fireworks displays that you can enjoy for free without the hazards of firing off your own.
  15. Have a “vacation” at home. Plan a themed party, such as a trip to Hawaii for instance, and involve all your family in making decorations and choosing music appropriate to the theme. Grill fish or chicken with pineapple and choose island side dishes. End the evening with a hula contest, with the winner walking off with the grass skirt. Make it a family challenge to see who can come up with the most fun theme for the next vacation.
  16. Make it a season for ordering checks online at Coolchecks.net Save up to 50% on your orders.
  17. To avoid costly first-run movies, plan on the matinee performances. Swap movies with friends and relatives. Many libraries allow you to reserve new DVDs, If you want to get into movies in a big way,and really enjoy the old-time productions, consider looking into a 16-mm film projector and old movie reels. They’re available on ebay.com
  18. Instead of heading for expensive swim sites, invest in a slip-n-slide plastic strip and use the garden hose to keep the kiddies entertained. Small pools can be as much fun for tots as more-threatening large pools. But even with small pools, be sure little ones are supervised.
  19. The refreshing but expensive iced tea and coffee drinks that you spend big bucks for are easy to replicate in your own kitchen. A simple recipe for “sun tea” calls for four large tea bags emptied into a pitcher or jar full of water. Let is stand outside for three hours. When you want to use it, dilute with water to taste, add a little lemon and sugar and voila! Refrigerate what’s left in clean soft-drink bottles. Ditto iced coffee, which you can make by freezing left-over coffee in trays then blending with liquid creamer and ice cubes.
  20. Walk instead of driving. With the cost of gasoline across the country heading up and down and mostly up, take advantage of warm weather to do as many errands as possible without driving. Whatever you can do in the early morning or evening will provide the most comfortable temperatures when you start off on foot.

Tax Strategies For The Self-Employed

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Are you prepared for tax season? Have you thought of using a (SEP-IRA) Self Employed Pension plan to help you reduce your tax liability and prepare for retirement?

In the past five years, job losses in the United States have given people incentives to start their own businesses. These self employed people have become successful financially and have never really been forced to think about how they are going to manage paying their own taxes. With additional money coming in, they need a tax strategy to help them plan for retirement.

The formula they might use in saving for taxes needs to benefit them the most in the long run. You could use the strategy of saving 25%-35% and just leaving the money in a savings account. This will earn you very little interest over the course of a year.

One very good tax strategy is to set up an account that is established as Self Employed Pension or SEP-IRA. These accounts will provide you a reduction in your net earnings and allow your money to grow through investments.

So what is a SEP-IRA? A SEP-IRA is an account set up at banks, insurance companies or financial institutions. You are allowed to make cash contributions up to a set limit per year. You need to check with your tax specialist about the amount limits for your situation. For 2011, the contributions cannot go over $49,000.

When you lower your net earnings from your business, you lower your tax liability. The net earnings from your business is your gross income minus allowable business deductions. This determines your taxable income. Contributions to SEP plans are an allowable deduction.

Setting up this type of account helps you in two ways. You reduce your net earnings and you are able to start contributing to your own retirement plan. Both of these benefits can save you thousands of dollars in the long run and with a good investment strategy for your cash contributions, you stand to earn money on your investments over time.

If you are new to being self-employed and want a good strategy to help you build your assets, consider using an SEP-IRA. You can set these up and contribute to them up until the date your taxes are due. Discuss this tax strategy with your tax preparer and determine if this would help your personal tax situation.

This article is meant as a guide for your education. Please counsel with your tax preparer before taking any action. For the government description of SEP-IRAs, please visit: http://www.irs.gov/pub/irs-pdf/p560.pdf

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Big Break For Small Business Suppliers

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An exciting new opportunity has been created for small business owners. The ability to offer their products or services to large corporations is a big boost to businesses that would otherwise not be able to even put their foot in the doors of big companies.

Supplier Connection, a program recently put into effect by the U.S. Small Business Administration is a program offered by the IBM foundation and was created as a way to improve part of the Obama administration’s American Supplier Initiative. The public-private effort involves 15 major corporations that are willing to consider ordering supplies and services from the small businesses registered with them. The corporations collectively have more than $300 billion in purchasing power.

It is expected that the initiative will grow small businesses, create new jobs and add strength and diversity to America’s supply sources, said SBA administrator Karen Mills.
“While it is clear that becoming a corporate supplier can lead to business growth, breaking in can be a challenge for small businesses,” she said.

The administration recently sent letters to more than 50,000 small businesses outlining the new program and providing tools to smooth entry into the process. Supplier Connection is available to interested small business owners and registration is free online. There, they are able to register their company name and include details about what kind of products they offer. The hope is to provide small business owners an opportunity to become suppliers to larger corporations.

Among the 15 companies that have signed on to the program are Wells Fargo, UPS, Pfizer, Office Depot, Kellogg’s, John Deere, J P Morgan Chase, Dell, Facebook, CitiGroup, Caterpillar, AMD, AT&T, Bank of America and Caterpillar. They have agreed to look at the services and products of small businesses that register online. They then will determine which services or products warrant their financial investment. Small businesses can learn to supply large corporations with their unique offerings.

Small business owners often have no idea how to connect with large corporations and thus never get the chance to get contracts with corporations who have large amounts of capital. This free service can help pull small companies that have real potential into the mainstream of American business and put them on the road to success. The new revenues coming from a business relationship with successful corporations may prove just the needed edge to grow revenue to new levels. On the other side of the coin, the corporations that are purchasing goods and services will have better insights on the pulse of emerging businesses. Everyone wins.

Small businesses connect with business checks suppliers for ordering discounts.