Whether doing my weekly radio show, teaching entrepreneurial classes, or doing personal coaching, I talk to a lot of would-be entrepreneurs these days and I’m discovering that many of them are suffering from what I call, “I Don’t Syndrome” or IDS.
IDS is a sad malady that affects many people who claim they want to start their own business, but never seem to get beyond just talking about it.
The symptoms of IDS are a lack of belief in themselves, a fear of failure and ridicule, a misguided belief that lots of money is required to start a business, and lousy time management skills. IDS can even cause an otherwise intelligent person to question their own sanity.
It’s a sad disease that prevents thousands of people every year from achieving their American Dream.
But there is hope. IDS can be cured simply by facing it head on and accepting the fact that not everyone is cut out to be an entrepreneur. Don’t beat yourself up if you’re more comfortable working for someone else. Just accept the fact that business is not for you and strive to be the absolute best employee you can be and you’ll achieve success in that arena.
If you’re dead-set on starting your own business and IDS is keeping you up at night, consider the following symptoms and suggested cures.
“I don’t have time to start a business.”
I hear this one all the time from people who spend five hours a night parked in front of the TV. Sorry, couch potato, you get zero sympathy from me. You must make time for what’s important to you, so if starting your own business is important to you, find the time to make it happen.
I started my business from the corner of my tiny bedroom working between the hours of ten at night till whenever I passed out in the wee hours of the morning. Then I’d get up and be at my day job at 8AM. I’d work on the business during my lunch hour and on weekends.
There are only so many hours in the day so you have to make the best use of what God gave you. When a spare minute pops up use it to work on your business; otherwise grab the remote and keep your day job.
“I don’t have the money to start a business.”
Many people are under the misconception that starting a business requires piles of cash. Nothing could be further from the truth.
I’d wager that many of the Forbes 100 were started for less than $10,000; many for less than $1,000. When you start a business you should do so for as little money as possible. Put what money you have toward the things that are vital and backburner everything else.
Become an expert at stretching every dollar until it screams. Instead of tying up your money in inventory try to negotiate 90 day terms with suppliers.
Instead of buying fancy desk chairs park your can on a milk crate until money starts rolling in. Instead of signing a lease for office space that will tie up your first born for five years work from your kitchen table.
“I don’t have the confidence to start a business.”
When I hear this one I know immediately that I’m talking to someone who will probably never even start a business.
Let’s be honest, everyone would start their own business if they had a 100% guarantee of success, but very few people would bet the farm on starting their own business knowing that most small businesses fail within the first five years.
I knew that statistic going in and so did every other entrepreneur who threw caution to the wind and dove in with both feet.
Fear of failure is the number one killer of success. But understand this: if you never fail, you will never succeed.
“I don’t think I’m smart enough to start a business.”
If starting a business was rocket science all businesses would be owned by rocket scientists. You don’t need an MBA to start a business. Many entrepreneurs, including me, never even went to college. I drove by a college once. It looked really hard so I kept going.
Business success depends more on common sense and careful planning than book smarts. Don’t cut yourself short just because you don’t have a degree on your wall or an acronym after your name.
“I don’t have the self-discipline to start a business.”
This is the most deadly symptom of IDS because it reveals the truth about the person making the statement. Succeeding in business is all about taking action without being told to do so.
You’re the guy or gal that makes things happen. You must have the self-discipline to jump out of bed every morning ready to take on the world, which may mean calling on customers, managing employees, making important decisions, and working 18 hours straight if that’s what the day requires. If you have to be told what to do and when to do it, business is not for you.
You can overcome IDS. All it takes is a little honesty and self-realization.
And sometimes a good swift kick in the pants.
Consider yourself kicked.
Permalink
Be sure to see all our latest wholesale arrivals @ http://savesucash.com/
Tuesday, July 31, 2007
Friday, July 27, 2007
But I'm Making Good Money
As we begin the last quarter of the year I always like to take a fresh look at everything I’m doing.
Are writing, speaking, being on radio, creating new products, coaching, connecting people and spending time with family and friends all activities that embrace my “calling,” my purpose for being here on earth?
Or have I allowed some things to creep in that are nothing more than income generators, or just worthless habits that I need to stop doing.
My goal is to determine by November 15th what 15% of my current activities that I’m going to stop. I’ve been doing this for years and have found it to be a extremely helpful process. By eliminating 15% I then open the door to bring in a new 15%.
And it’s in that new window that I was able to begin writing, starting the 48 Day Coaching Connection, enjoying unique excursions with Joanne, attending enlightening seminars and spending time at a monastery.
What about you? Are all of your activities connected to your divine purpose? Are your work and your lifestyle a reflection of your values – or have you been so busy making a living that you’ve forgotten to have a life? Are you cut off from your calling and your heart in a futile attempt to be “practical” and “responsible?”
Several years ago I spoke with a young man who was running ads in Sunday papers, “offering” jobs with the government.
He promotes highly paid positions and says jobs are waiting. Then when calls come in, the callers are high pressured into buying a course to help them prepare for the civil service exam. No jobs, no openings – just an emotional hook to get desperate people on the phone – and then manipulate them into spending money to prepare for an exam they could probably take today.
This guy feels pretty bad about what he’s doing – and only plans to do it for a couple more years. He’s making $4,000 – $6,000 a week and figures he’ll be able to do some worthwhile things with all the money he’s making.
I know another gentleman who publicly announced in church that he was going to do a reverse tithe. He was going to live on 10% of his income and give 90% to the church.
He promoted miracle medical cures, a credit repair system, and a product that addressed a loophole in the law – ran national TV ads and brought in money by the truckload.
His promotions promised things that really weren’t quite true – but he proudly gave enormous sums of money to his church for worthwhile ministries. Then to the horror of his family and friends he spent a couple of years in prison for mail fraud.
Not exactly the kind of legacy most of us want to leave.
What do you need to stop doing – to once again find what Thomas Merton described as that “hidden wholeness?”
What should you be planning for in 2008 that will finally release your true brilliance?
Are there adjustments needed in your work, your relationships, and your thinking?
It takes courage to break free from habits, traditions and unhealthy expectations. It takes courage to live out our calling, to unleash our creativity and unique genius. It takes courage to turn away from the pack and launch out in a new, inspired direction.
But then your heart can sing, you can look people directly in the eyes and be confident of the value of your work.
If someone has to lose for you to win, you’re in the wrong business.
Be sure to see all our latest wholesale arrivals @ http://savesucash.com/
Are writing, speaking, being on radio, creating new products, coaching, connecting people and spending time with family and friends all activities that embrace my “calling,” my purpose for being here on earth?
Or have I allowed some things to creep in that are nothing more than income generators, or just worthless habits that I need to stop doing.
My goal is to determine by November 15th what 15% of my current activities that I’m going to stop. I’ve been doing this for years and have found it to be a extremely helpful process. By eliminating 15% I then open the door to bring in a new 15%.
And it’s in that new window that I was able to begin writing, starting the 48 Day Coaching Connection, enjoying unique excursions with Joanne, attending enlightening seminars and spending time at a monastery.
What about you? Are all of your activities connected to your divine purpose? Are your work and your lifestyle a reflection of your values – or have you been so busy making a living that you’ve forgotten to have a life? Are you cut off from your calling and your heart in a futile attempt to be “practical” and “responsible?”
Several years ago I spoke with a young man who was running ads in Sunday papers, “offering” jobs with the government.
He promotes highly paid positions and says jobs are waiting. Then when calls come in, the callers are high pressured into buying a course to help them prepare for the civil service exam. No jobs, no openings – just an emotional hook to get desperate people on the phone – and then manipulate them into spending money to prepare for an exam they could probably take today.
This guy feels pretty bad about what he’s doing – and only plans to do it for a couple more years. He’s making $4,000 – $6,000 a week and figures he’ll be able to do some worthwhile things with all the money he’s making.
I know another gentleman who publicly announced in church that he was going to do a reverse tithe. He was going to live on 10% of his income and give 90% to the church.
He promoted miracle medical cures, a credit repair system, and a product that addressed a loophole in the law – ran national TV ads and brought in money by the truckload.
His promotions promised things that really weren’t quite true – but he proudly gave enormous sums of money to his church for worthwhile ministries. Then to the horror of his family and friends he spent a couple of years in prison for mail fraud.
Not exactly the kind of legacy most of us want to leave.
What do you need to stop doing – to once again find what Thomas Merton described as that “hidden wholeness?”
What should you be planning for in 2008 that will finally release your true brilliance?
Are there adjustments needed in your work, your relationships, and your thinking?
It takes courage to break free from habits, traditions and unhealthy expectations. It takes courage to live out our calling, to unleash our creativity and unique genius. It takes courage to turn away from the pack and launch out in a new, inspired direction.
But then your heart can sing, you can look people directly in the eyes and be confident of the value of your work.
If someone has to lose for you to win, you’re in the wrong business.
Be sure to see all our latest wholesale arrivals @ http://savesucash.com/
Thursday, July 26, 2007
Is Business Ownership In Your Future?
The last time we met I told you about the U.S. Department of Labor’s prediction that within the next ten to fifteen years fifty percent of the American workforce will consist of home workers, independent contractors, consultants, telecommuters, freelancers, and of course, entrepreneurs.
Think about that for a moment, especially if you are a diehard nine-to-fiver who can’t imagine yourself leaving the comfort of a regular job to try something different.
The workplace of the future is either going to be an exciting or dreadful place, and it’s up to you which side of the coin you fall on.
You see, what the Labor Department doesn’t say, but I believe to be true, is that those who find themselves earning a living in non-traditional careers will do so for one of two reasons: they either freely chose to throw off the shackles of the traditional nine-to-five or they were forced to do so because they were casualties of the future’s changing work models.
Layoffs, downsizing, outsourcing, work force reduction, and position elimination: all very nice politically-correct terms that mean one thing: you had better be open to changing the way you think about work because, my brothers and sisters, the times they are a’ changing.
The point of our discussion last time focused on those of you who may one day choose the entrepreneurial path.
There is a process for going from worker bee to entrepreneur wannabe and it begins with a healthy dose of self-assessment (look inward to determine if you have what it takes to be an entrepreneur) followed by the determination of what kind of business best suits your situation and personality, how you will fund the business, and the writing of a solid business plan.
Now let’s talk about the nuts and bolts of the process: finding a location, lining up vendors, hiring and managing employees, dealing with customers, creating a marketing strategy … hmm, this could turn into a very long column. Let me see if I can abbreviate the process in four paragraphs or less.
If your business will be a brick and mortar, nothing is as important as location.
What might be a great location for a shoe store might be a horrible location for a donut shop.
What may appear to be a busy location in the morning might be a ghost town in the afternoon. You should rely on experts for this important piece of the process.
Work with a commercial realtor or business broker to find a location that meets your specific needs.
Next, if yours will be a product-driven business, your success could hinge on the quality, price, and availability of the products you sell.
You must establish strong relationships with reliable vendors who can provide an ample supply of the products your customers demand.
Always be cultivating relationships with new vendors. Never rely on a single source for products because sources have a tendency to dry up over time.
Next comes the hiring and managing of employees. Like your location and product, employees can make or break your business.
Knowledgeable employees who know the value of - and deliver - exceptional customer service are like nuggets of gold. Unfortunately, they are also as hard to find.
Don’t hire your wife’s brother or your best friend’s son. It’s easier to find a new best friend than a new customer.
Hire based on experience and expertise and train every employee well. Set expectations high and most important of all, lead by example, not by the book.
Finally, the big question: if you build it will they come? Afraid not, my new entrepreneur friend. You must have a killer marketing plan that will bring the world – or at least your piece of the world - to your door.
You can have the best product in the world, but if you don’t tell anyone about it, you won’t sell a thing.
Creating a killer marketing plan really isn’t that hard. Just ask yourself questions like: who is my target customer and what is the best way to reach them? What can I do to stand out from the crowd? What can I do differently? How can I get noticed? And how can I do that without spending an arm and leg on advertising?
Permalink
Be sure to see all our latest wholesale arrivals @ http://savesucash.com/
Think about that for a moment, especially if you are a diehard nine-to-fiver who can’t imagine yourself leaving the comfort of a regular job to try something different.
The workplace of the future is either going to be an exciting or dreadful place, and it’s up to you which side of the coin you fall on.
You see, what the Labor Department doesn’t say, but I believe to be true, is that those who find themselves earning a living in non-traditional careers will do so for one of two reasons: they either freely chose to throw off the shackles of the traditional nine-to-five or they were forced to do so because they were casualties of the future’s changing work models.
Layoffs, downsizing, outsourcing, work force reduction, and position elimination: all very nice politically-correct terms that mean one thing: you had better be open to changing the way you think about work because, my brothers and sisters, the times they are a’ changing.
The point of our discussion last time focused on those of you who may one day choose the entrepreneurial path.
There is a process for going from worker bee to entrepreneur wannabe and it begins with a healthy dose of self-assessment (look inward to determine if you have what it takes to be an entrepreneur) followed by the determination of what kind of business best suits your situation and personality, how you will fund the business, and the writing of a solid business plan.
Now let’s talk about the nuts and bolts of the process: finding a location, lining up vendors, hiring and managing employees, dealing with customers, creating a marketing strategy … hmm, this could turn into a very long column. Let me see if I can abbreviate the process in four paragraphs or less.
If your business will be a brick and mortar, nothing is as important as location.
What might be a great location for a shoe store might be a horrible location for a donut shop.
What may appear to be a busy location in the morning might be a ghost town in the afternoon. You should rely on experts for this important piece of the process.
Work with a commercial realtor or business broker to find a location that meets your specific needs.
Next, if yours will be a product-driven business, your success could hinge on the quality, price, and availability of the products you sell.
You must establish strong relationships with reliable vendors who can provide an ample supply of the products your customers demand.
Always be cultivating relationships with new vendors. Never rely on a single source for products because sources have a tendency to dry up over time.
Next comes the hiring and managing of employees. Like your location and product, employees can make or break your business.
Knowledgeable employees who know the value of - and deliver - exceptional customer service are like nuggets of gold. Unfortunately, they are also as hard to find.
Don’t hire your wife’s brother or your best friend’s son. It’s easier to find a new best friend than a new customer.
Hire based on experience and expertise and train every employee well. Set expectations high and most important of all, lead by example, not by the book.
Finally, the big question: if you build it will they come? Afraid not, my new entrepreneur friend. You must have a killer marketing plan that will bring the world – or at least your piece of the world - to your door.
You can have the best product in the world, but if you don’t tell anyone about it, you won’t sell a thing.
Creating a killer marketing plan really isn’t that hard. Just ask yourself questions like: who is my target customer and what is the best way to reach them? What can I do to stand out from the crowd? What can I do differently? How can I get noticed? And how can I do that without spending an arm and leg on advertising?
Permalink
Be sure to see all our latest wholesale arrivals @ http://savesucash.com/
Tuesday, July 24, 2007
Are You Willing To Do Whatever It Takes To Succeed In Business?
Ladies and gentleman, meet Mo, Larry, and Curly Entrepreneur. These fine fellows are here today to help answer the age old question: Why do some entrepreneurs achieve stellar success while others achieve only moderate success while still others fail in business miserably?
To level the playing field let’s pretend that each of our wily entrepreneurs all started their businesses on the exact same day, selling the exact same product at the exact same price. Let’s also pretend that they started their businesses from identical locations, with the exact same resources and funding, and with the exact same opportunities and odds for success.
Even when starting from the same place at the same point in time with the same resources and same opportunities, the results vary widely; some entrepreneurs succeed in an amazing way and others do not.
Why then does one entrepreneur, in this case Curly because he is my favorite Stooge, reach the stars while most Stooges never make it off the ground? Why does Curly get to give the crowd a “Woop, woop, woop!” while accepting the Chamber’s Small Business of the Year Award while Mo and Larry have to work as waiters at the event to help pay their bills?
Great questions, but before we explore the answers let’s take it a step further. Let’s vary the equation since no two business startups are ever really the same. Could the difference in the level of success achieved be a result of the amount of financial backing each Stooge had? Could it be that one entrepreneur was simply smarter than the others (probably not in Curly’s case)? Or perhaps it was just good old dumb luck that made the difference. Or maybe God was just tired of Mo and Larry pushing Curly around and punished them with failing businesses akin to Lot’s House of Salt.
Stooges aside, there is a very simple reason some entrepreneurs do amazingly well in business while others do not. It has nothing to do with product or location or backing or education or street smarts or dumb luck.
It’s because those who succeed in an amazing way are willing to do whatever it takes – for as long as it takes - to make their dreams come true. Those who are unwilling to do whatever it takes will ultimately fail. That’s it, end of story, thank you, drive through.
I hear it all the time from students in the entrepreneurial classes I teach and from folks who call into the radio show and from consulting clients who call my office wanting to know why their businesses are tanking.
“Tim, I’m doing everything I possibly can and the business is about to go under!”
I listen and say, “Mm hmm,” in all the appropriate places, but inevitably when I ask, “Well, are you doing this, this, this, and this,” the answer usually comes back, “No, no, no, and no.”
The bottomline is this: Curly shoots for the moon and hits it while Mo and Larry talk the talk, but fail to walk the walk. Very few people are willing to do whatever it takes for as long as it takes to succeed in business. That’s why so many businesses fail; they are started by Stooges (bless their hearts) who have no business being in business. Period.
Before you even think about starting a business ask yourself this question: are you willing to do whatever it takes for as long as it takes to succeed in business? Would you be willing to work for a year without a regular paycheck? Would you be willing to perform every task imaginable? Would you clean the toilets, mop the floors, take out the trash, wash the windows, clean out a grease trap, flip burgers, pour drinks, and deal with customers for hours on end?
Would you stay up all night writing a proposal that you have a slim chance of winning and spend the entire next day cold calling clients who won’t give you the time of day?
Would you sell your car and mortgage your house and live on rice and beans for a year to fund the business? And if that money ran out would you think up creative ways to keep the doors open or would you just shut the doors and crawl home with your tail tucked between your legs?
And would you put your last ounce of blood, sweat and tears into a dream that might or might not come true?
If the answer to any of these questions is maybe, I don’t know, or just no, I want you to hold up your hand and stick out two fingers, then poke yourself in the eyes with them.Then repeat after me, “Why I oughta… keep my day job.”
Permalink
Be sure to see all our latest wholesale arrivals @ http://savesucash.com/
To level the playing field let’s pretend that each of our wily entrepreneurs all started their businesses on the exact same day, selling the exact same product at the exact same price. Let’s also pretend that they started their businesses from identical locations, with the exact same resources and funding, and with the exact same opportunities and odds for success.
Even when starting from the same place at the same point in time with the same resources and same opportunities, the results vary widely; some entrepreneurs succeed in an amazing way and others do not.
Why then does one entrepreneur, in this case Curly because he is my favorite Stooge, reach the stars while most Stooges never make it off the ground? Why does Curly get to give the crowd a “Woop, woop, woop!” while accepting the Chamber’s Small Business of the Year Award while Mo and Larry have to work as waiters at the event to help pay their bills?
Great questions, but before we explore the answers let’s take it a step further. Let’s vary the equation since no two business startups are ever really the same. Could the difference in the level of success achieved be a result of the amount of financial backing each Stooge had? Could it be that one entrepreneur was simply smarter than the others (probably not in Curly’s case)? Or perhaps it was just good old dumb luck that made the difference. Or maybe God was just tired of Mo and Larry pushing Curly around and punished them with failing businesses akin to Lot’s House of Salt.
Stooges aside, there is a very simple reason some entrepreneurs do amazingly well in business while others do not. It has nothing to do with product or location or backing or education or street smarts or dumb luck.
It’s because those who succeed in an amazing way are willing to do whatever it takes – for as long as it takes - to make their dreams come true. Those who are unwilling to do whatever it takes will ultimately fail. That’s it, end of story, thank you, drive through.
I hear it all the time from students in the entrepreneurial classes I teach and from folks who call into the radio show and from consulting clients who call my office wanting to know why their businesses are tanking.
“Tim, I’m doing everything I possibly can and the business is about to go under!”
I listen and say, “Mm hmm,” in all the appropriate places, but inevitably when I ask, “Well, are you doing this, this, this, and this,” the answer usually comes back, “No, no, no, and no.”
The bottomline is this: Curly shoots for the moon and hits it while Mo and Larry talk the talk, but fail to walk the walk. Very few people are willing to do whatever it takes for as long as it takes to succeed in business. That’s why so many businesses fail; they are started by Stooges (bless their hearts) who have no business being in business. Period.
Before you even think about starting a business ask yourself this question: are you willing to do whatever it takes for as long as it takes to succeed in business? Would you be willing to work for a year without a regular paycheck? Would you be willing to perform every task imaginable? Would you clean the toilets, mop the floors, take out the trash, wash the windows, clean out a grease trap, flip burgers, pour drinks, and deal with customers for hours on end?
Would you stay up all night writing a proposal that you have a slim chance of winning and spend the entire next day cold calling clients who won’t give you the time of day?
Would you sell your car and mortgage your house and live on rice and beans for a year to fund the business? And if that money ran out would you think up creative ways to keep the doors open or would you just shut the doors and crawl home with your tail tucked between your legs?
And would you put your last ounce of blood, sweat and tears into a dream that might or might not come true?
If the answer to any of these questions is maybe, I don’t know, or just no, I want you to hold up your hand and stick out two fingers, then poke yourself in the eyes with them.Then repeat after me, “Why I oughta… keep my day job.”
Permalink
Be sure to see all our latest wholesale arrivals @ http://savesucash.com/
Tuesday, July 17, 2007
Does image hotlinking help your rankings in Google?
ome webmaster use a new search engine optimization practice to get high rankings on Google. They hotlink images from other web servers to rank highly in Google's image search results.
How does this work?
Google's image search doesn't just return web pages from where a picture originates. For example, the first result for "Darth Vader" returns a BlogSpot web page although the original image is stored on a .hu domain.
Search for any term on Google Images and you'll always find web pages in the results that are just linking to an image from another website.
Why does this help your rankings in the normal Google results?
Google's new Universal Search system now returns images and movies at the top at the search results for some search terms. For example, if you search for "Darth Vader", image results will be the first results in the list.
A click on these images redirects web surfers to the web page on which the image is displayed. If your website has a good ranking in Google Image search then these top rankings might also be displayed in Google's regular results for that search term:
Should you use this new method to improve your search engine rankings?
We do not recommend this new method. It is risky in several ways. If you don't have the copyright for an image, you are not allowed to use it on your own web site.
Hotlinking an image without asking the owner also exposes your site to the risk of defacement. The webmaster of the website that hosts the original image just needs to replace the original image with something rude and it will be displayed on your web site.
Hotlinking images is not long term strategy for high rankings on Google. If you want lasting results, you should optimize your web pages so that they can be found for your keywords. Also make sure that the right pages link to your website.
Axandra's Weekly Search Eninge Facts
Be sure to see all our latest wholesale arrivals @ http://savesucash.com/
How does this work?
Google's image search doesn't just return web pages from where a picture originates. For example, the first result for "Darth Vader" returns a BlogSpot web page although the original image is stored on a .hu domain.
Search for any term on Google Images and you'll always find web pages in the results that are just linking to an image from another website.
Why does this help your rankings in the normal Google results?
Google's new Universal Search system now returns images and movies at the top at the search results for some search terms. For example, if you search for "Darth Vader", image results will be the first results in the list.
A click on these images redirects web surfers to the web page on which the image is displayed. If your website has a good ranking in Google Image search then these top rankings might also be displayed in Google's regular results for that search term:
Should you use this new method to improve your search engine rankings?
We do not recommend this new method. It is risky in several ways. If you don't have the copyright for an image, you are not allowed to use it on your own web site.
Hotlinking an image without asking the owner also exposes your site to the risk of defacement. The webmaster of the website that hosts the original image just needs to replace the original image with something rude and it will be displayed on your web site.
Hotlinking images is not long term strategy for high rankings on Google. If you want lasting results, you should optimize your web pages so that they can be found for your keywords. Also make sure that the right pages link to your website.
Axandra's Weekly Search Eninge Facts
Be sure to see all our latest wholesale arrivals @ http://savesucash.com/
Friday, July 13, 2007
The Internet Tax Man Cometh
Q: I was contacted by the city tax collector to say that my business is scheduled to be audited to see if I owe sales tax on items purchased on the Internet. Can they really make me pay sales tax on internet purchase? I thought you could buy things online tax free? — Charlie B.
A: Sorry, but your local municipality is well within its rights to audit your business to identify items purchased online. The city can also demand payment of sales tax on those items if sales tax was not previously paid. Don’t be surprised if the auditor asks for access to your books and to see purchase receipts and invoices for at least the past year.
One of my companies recently underwent such an audit and it really was not as painful as you might think. Being a software company, the majority of our online purchases were for computer equipment, technical manuals, and software development tools. Since we purchase computers from a large supplier who collects sales tax at the point of sale (ditto for the development tools), the only sales tax we ended up owing was for an inordinate number of technical manuals and books purchased at Amazon.com.
If your small business is like most, the majority of your large purchases are made locally from companies that already collect sales tax. Furniture and computer equipment are typically the largest ticket items a small business buys, so unless you bought your desks and computers off of Ebay (which is highly possible these days) you should be OK.
Internet sales taxation has been a topic of contention even before Amazon sold its first book and Priceline booked its first flight. One of the more controversial points is that no one, including our own government, seems to have a clue how to implement a fair and logical Internet taxation process. With over 7,500 different local, county and state taxation systems in the United States, you can understand the controversy.
In 1998, Congress did what it usually does when faced with a potentially explosive issue like Internet tax collection — it decided to put off making a decision. Congress enacted a three-year moratorium on the collection of taxes to give an appointed advisory board time to come up with an acceptable solution. That moratorium ended in 2002 and opened the door for municipalities to begin collecting sales tax on their own.
Here in Alabama the state sales tax collection department has aired radio spots asking Alabamians to step up to - and toss dollars into - the proverbial collection plate. The commercial kindly suggests that if I have purchased anything from an online retailer, I am honor-bound to proclaim such purchases and submit the appropriate sales tax to the collection department right away. They thank me in advance for my cooperation.
So, Charlie, when the auditor shows up at your door the best thing you can do is smile politely and be totally forthcoming. The sales tax that you pay is a small price for the convenience of shopping online.
Or at least that’s what you should tell yourself as you write the auditor a check.
Permalink
Be sure to see all our latest wholesale arrivals @ http://savesucash.com/
A: Sorry, but your local municipality is well within its rights to audit your business to identify items purchased online. The city can also demand payment of sales tax on those items if sales tax was not previously paid. Don’t be surprised if the auditor asks for access to your books and to see purchase receipts and invoices for at least the past year.
One of my companies recently underwent such an audit and it really was not as painful as you might think. Being a software company, the majority of our online purchases were for computer equipment, technical manuals, and software development tools. Since we purchase computers from a large supplier who collects sales tax at the point of sale (ditto for the development tools), the only sales tax we ended up owing was for an inordinate number of technical manuals and books purchased at Amazon.com.
If your small business is like most, the majority of your large purchases are made locally from companies that already collect sales tax. Furniture and computer equipment are typically the largest ticket items a small business buys, so unless you bought your desks and computers off of Ebay (which is highly possible these days) you should be OK.
Internet sales taxation has been a topic of contention even before Amazon sold its first book and Priceline booked its first flight. One of the more controversial points is that no one, including our own government, seems to have a clue how to implement a fair and logical Internet taxation process. With over 7,500 different local, county and state taxation systems in the United States, you can understand the controversy.
In 1998, Congress did what it usually does when faced with a potentially explosive issue like Internet tax collection — it decided to put off making a decision. Congress enacted a three-year moratorium on the collection of taxes to give an appointed advisory board time to come up with an acceptable solution. That moratorium ended in 2002 and opened the door for municipalities to begin collecting sales tax on their own.
Here in Alabama the state sales tax collection department has aired radio spots asking Alabamians to step up to - and toss dollars into - the proverbial collection plate. The commercial kindly suggests that if I have purchased anything from an online retailer, I am honor-bound to proclaim such purchases and submit the appropriate sales tax to the collection department right away. They thank me in advance for my cooperation.
So, Charlie, when the auditor shows up at your door the best thing you can do is smile politely and be totally forthcoming. The sales tax that you pay is a small price for the convenience of shopping online.
Or at least that’s what you should tell yourself as you write the auditor a check.
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