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The Customer Sphere is one of the most important components of your business. Without customers you do not have sales, without sales you do not have money and without money you do not have a business. Many factors go into generating a good customer base. In the beginning you must have a cost effective marketing strategy that targets your intended buyers. This can be done by developing a psychological profile of your customer and then advertising in those places that they frequent. Because it is more expensive to get a new customer than it is to keep one you must make sure they are satisfied with your business and product. Keep in touch with them by sending them a follow-up letter with a survey.
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by: Murad Ali
Business if tough in today痴 world! Most small businesses go bankrupt or are closed abruptly in the first five years. Over the course of the next five years many of the remainders also 菟ack up? shop and lock their doors. Why do so many businesses fail?

The reasons lie in three main spheres. Those spheres of influence can be labeled personal, customer, and operations.


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About the author:
The Operations Sphere is only second to the Customer Sphere. In operations you must have an appropriate method of reducing costs, keeping track of paperwork, and maintaining improvement. Operations can also take into effect the tax paperwork, accounting, scheduling of workers, benefits or any non-producing functions.

If all of these three components are well thought out and are appropriately designed you will increases your chances of survival. Failure to understand the integral details of your business and what it takes to succeed may mean failure in the long run. If you are having difficulty putting all the pieces together then consider a small business consultant.
The Personal Sphere deals with the owner痴 personal motivation to start a business. For example, if an owner wants to start their own business, but isn稚 willing to make the sacrifices necessary to make it thrive, then they are at a disadvantage when compared to other motivated businesspeople. When a business starts for the first time often it doesn稚 have a lot of money. Owners are required to sacrifice time, money, and happiness to succeed. If you can稚 do that, it is unlikely that such a business will flourish. Many times owners thought they could handle the hardship but once the novelty of 澱eing your own boss? wears off they close the door.


Murad Ali is the published author of 鄭 Call to Greatness: Reforming the Muslim World? and 鄭n American Mecca: A New Muslim Homeland? available at most large bookstore websites. He is also the editor of the Muslim Times and a doctoral student. For more articles like this one please visit http://www.muradenterprises.org
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-The date the item was placed in service (Jan 1).
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-The method of depreciation to be used (straight-line)


by: John Day
Depreciation is defined as a portion of the cost that reflects the use of a fixed asset during an accounting period. A fixed asset is an item that has a useful life of over one year. An accounting period is usually a month, quarter, six months or one year. Let痴 say you bought a desk for your office on January 1, for $1000 and it was determined that the desk had a useful life of seven years. Using a one year accounting period and the 都traight-line? method of depreciation, the portion of the cost to be depreciated would be one-seventh of $1000, or $142.86.

Most non-accountants roll their eyes and shudder when the topic of 電epreciation? comes up. This is where the line in the sand is drawn. Depreciation is far too complicated to try and figure out, or so it seems to many. But is it really? Surely the definition of depreciation mentioned above is not that difficult to comprehend. If you look closely you will see that there are five pieces of information you must have in order to determine the amount of depreciation you can deduct in one year. They are:


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-The cost of the item ($1000).

-The useful life of the item (seven years).
-The nature of the item purchased (the desk).


The first three are easy to figure out, the second two are also easy but require a little research. How do you figure out the useful life of an item? Let me regress for a moment. There is 澱ook depreciation? which is based on the real useful life of an item, and there is the IRS version of what constitutes the useful life of an item. A business that is concerned with accurately allocating its costs so that it can get a true picture of net profit will use book depreciation on its financial statements.
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Minor Children Save the Most Taxes
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However, if your business is an S or C Corporation, you must pay Social Security and Medicare taxes regardless of their ages.


by: Chris Bird
Save on Taxes by Hiring Your Children

You've heard that you can't have your cake and eat it, too. But hiring your own family is one case when you can. Pay your minor or adult children to work for your business, then write it off as an expense.


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Child labor restrictions don't apply to a parent (unless it's in manufacturing, mining, or any hazardous occupation defined by the Department of Labor) - even under 16. I hired my own daughters from the ages of 7 and 9 without a hitch.

You need not pay withholding income taxes, payroll taxes (including Social Security) and Workmen's Compensation (in most states) until the child turns 18. Just remember to complete quarterly payroll tax returns, as you must for any employee. Forget about paying federal unemployment taxes until the child turns 21.
Many people are confused about whether it's legal to hire their children and grandchildren. Follow my advice to satisfy both the IRS and employment laws - while saving on your own taxes. Assuming it's a true payment for services performed (and the paperwork is handled properly) it's totally legal and acceptable to pay family members.


To Survive IRS Scrutiny
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