The Inner Game To Growing A Successful Business In Kansas City

Kansas City is gaining a strong reputation for being one of the best U.S. cities to start a new business and to pursue the entrepreneurial dream.

If you have a business or are in the process of launching a new one, it is common to focus on the external factors that drive your success. It is important to know your market, have a profound understanding of your target prospect, and to prove that you have a solution to help them with their top problems and challenges.

After researching the market and having a decent outline of your business plan there remains another critical factor that is frequently overlooked… The inner game for winning at business.

Here are some steps you can use to discover your inner-game.

Assess your personal strengths and weaknesses

  • What are your inherent weaknesses and how can you compensate for them and/or turn it into a strength by consciously building a complementary team?
  • The same holds true with your strengths. Let’s say you recognize that you’re really strong with innovation and vision. While it is important to act quickly and to have a trusted relationship with your intuition, it is also imperative to have a team that can help to evaluate your ideas and help set priorities.
  • Set up a process that all new ideas have to go through and, at the same time, ensure yourself that innovation is always welcomed and not stifled by bureaucracy.

Connecting your passions to your income streams

  • The real secret to entrepreneurism is connecting your passions to your income streams. Big challenges are bound to come and if you’re just in it for the money you’ll burn out. If you love what you’re doing you will overcome great odds and succeed.
  • Take some time to analyze your passions. Do you like sports, music, art? What is it about your personal passions that you can apply to your business?
  • If competition fuels your fire, how can you create a positive competitive environment in your company culture? Perhaps one where the emphasis is more on team building and creating a winning product, versus having winners and losers in some internal challenge.
  • Think about how you can create a positive company culture that makes you, and all your employees, look forward to collaborating and feeling a deep sense of connection.

To be a strong leader learn to be a great coach

  • Many famous entrepreneurs such as Steve Jobs and Eric Schmidt had their own personal business coach. A business coach can guide you to navigate around obstacles and help you grow as a person to be a great leader in your field.
  • In fact, both Steve Jobs and Eric Schmidt had the same business coach and his name was Bill Campbell. A recently released book covers this legendary Silicon Valley figure and his inner game of leading.
  • Trillion Dollar Coach: The Leadership Handbook of Silicon Valley’s Bill Campbell. 
  • There are many profound takeaways from this book but since we are focusing on the inner game I would like to share one. The power of building trust in your culture and with all your business relationships.
  • Cultivating trust can mean that you work with integrity and generate loyalty in your teams and with your colleagues. Bill Campbell was known for his listening skills and his ability to guide you by sharing stories. Instead of telling you what you needed to do, Bill would tell you relevant stories of what happened to him and let you generate your own conclusions.

The Inner Game Conclusion

  • Connecting to your feelings such as life passions, curiosities, intuition, trust, and integrity will make you a natural leader. I have had the honor to work with many Kansas City business leaders initially as an accountant. By being authentic and truly caring about the success of each client I was able to win their trust and loyalty.
  • By connecting to this inner game I was able to expand my accounting practice into business coaching as well.
  • I invite you to do the same. See how you can expand your business opportunities by listening more intently to your inner voice and trusting it to take you to the next level in your business success.

Please leave your comments here below. I read them all and welcome you to share any insights that you plan to put into action.

Ten Things to Know About An LLC

You probably know of several businesses whose formal names end with the acronym LLC.  And you probably also know that LLC stands for limited liability company.

Here are 10 things you may not know.

    1. An LLC generally protects its owners from personal liability for business obligations in much the same way a corporation does, but an LLC is not a corporate entity.1
    2. Like a corporation, an LLC can do business in multiple states, although an LLC must be organized in a specific state.
    3. The owners of an LLC are called members. There is no limit on the number of members an LLC can have, and members don’t necessarily have to be individuals. Members’ management roles are typically spelled out in an operating agreement.
    4. Upon formation of an LLC, the members contribute cash, property, or services to the LLC in exchange for LLC shares or units.
    5. An LLC may borrow money in its own name and is responsible for repayment of the debt.
    6. An LLC is usually treated as a partnership for federal income tax purposes.(The remaining four points assume partnership treatment.)
    7. Like partners, LLC members are not considered employees of the company. However, an LLC can have non-member employees.
    8. LLC members are taxed directly on company income. The LLC itself doesn’t pay federal income taxes.
    9. If an LLC has a loss, its members generally can deduct their share of the loss on their own tax returns.
    10. For tax purposes, an LLC’s income and losses are divided among its members according to the terms of their agreement. Tax allocations must correspond to economic allocations of profit and loss.

An LLC is but one structure you might consider using for a business venture. The input of a professional may be helpful in determining which type of arrangement will best meet your objectives.

Source/Disclaimer:

1Each state has its own laws governing LLCs. Consult with an attorney before establishing an LLC.

T. Williams & Associates are willing to educate our clients as to what their financial statements say as well as make suggestions as to what courses of action are advisable. With the new year fast approaching, it’s important to understand the recent changes to our tax laws. Together, we can identify new ways to save you money and increase profits wherever possible. Through our experience and expertise, we have developed proven processes to help automate your bookkeeping, increase your cash flow, and ultimately save money on your taxes.

 

3 Money Management Tips to Meet Your Small Business Financial Goals at Year-End

Resources to help you with money management do not need to be an EXTRA scary task.  The perfect way to satisfy this year’s financial goals in your small business is to take one step at a time.

1) Set a budget and stick to it. If the idea of budgeting seems intimidating, start with something simple by writing down your monthly income (paychecks, child support, etc.) and how much money you spend each month (rent, food, child care, car loan, etc.). Use this budget worksheet to help you plan.

2) Give your business and personal finances a wellness check. Your personal finances and well-being are closely tied to how well your business is doing.  Whether or not your business is as healthy as you’d like to be, it is recommended to run a wellness check to ensure that you meet your business’ financial goals.

3) Hire a tax professional to help you with your year-end tax planning.  The US code can be complex and difficult to understand.  Tax planning allows you to take advantage of strategies that may help reduce your tax obligation. To make things even easier, we recommend researching your tax credit opportunities to reduce your liability.

T. Williams & Associates are willing to educate our clients as to what their financial statements say as well as make suggestions as to what courses of action are advisable.  With the new year fast approaching, it’s important to understand the recent changes to our tax laws. Together, we can identify new ways to save you money and increase profits wherever possible. Through our experience and expertise, we have developed proven processes to help automate your bookkeeping, increase your cash flow, and ultimately save money on your taxes.

If you enroll in our accounting services by December 31st, we are offering a two month FREE trial of our payroll and Online Quickbooks software!*

Please follow this link to schedule a meeting or conference call, so we can discuss your business’ needs and determine how much money we can save you monthly.

Give Your Business and Personal Finances a Wellness Check

For richer, for poorer, for better, for worse. If you own a small business, these familiar wedding vows might signify more than promises to a spouse. They might describe your relationship with your business as well. And with good reason if your personal financial well-being is closely tied to how well your business is doing.
A strong cash flow is good for business and good for you. If your company’s cash flow isn’t as healthy as you’d like it to be, here are some things to consider.



Rely on Reports

What you don’t know can hurt you, especially when it comes to cash flow. If you’re not already checking them, start generating cash flow and cash balance reports on a monthly basis. If your figures are off for even a few months, find out why. A problem could be lurking.



Market, Market, Market

When things are slow, developing new business opportunities is critical to your cash flow — and perhaps, your company’s survival. But it’s also critical when things are good. You can’t afford to be complacent about the future. If you stop devoting time to growing your business, your success may be short-lived.

Look at Limits

In a cash crunch, many small business owners instinctively dip into their personal accounts to help their businesses over the hump. While this may be simpler and faster than some other solutions, it could turn disastrous for an owner’s personal finances if the business is seriously failing. If you haven’t already decided how much of your personal assets you’re willing to invest in your business, now may be a good time to come up with a limit.



Create a Credit Line

Even if you’re doing everything right, you could still hit a rough patch. Or, an opportunity might come up that requires some quick financial maneuvering. Instead of using your own money, consider using a line of credit. For maximum flexibility, establish a line of credit for your business before you need it. If you wait to apply until you’re in a bind or a hurry, you might be turned down.



Wedded Bliss

If your personal and business finances are intertwined, your planning should integrate the two.



Tax Credit Opportunities

Tax deductions aren’t the only things to consider when looking for ways to reduce your 2018 tax bill. There are a number of tax credits that you may be able to claim. A tax credit reduces your tax liability dollar for dollar (and, in some instances, may be fully or partially “refundable” to the extent of any excess credit).



Child-Related Credits

Parents of children under age 17 may claim a child tax credit of up to $2,000 per qualified child. The child tax credit is phased out for higher income taxpayers. A different credit of up to $13,810 is available for the payment of qualified adoption expenses, such as adoption fees, attorney fees, and court costs. The credit is phased out at certain income levels, and there are certain restrictions as to the tax year in which the credit is available. Look into claiming the child and dependent care credit if you pay for the care of a child under age 13 while you work. It’s available for 20% (or more) of up to $3,000 of qualifying expenses ($6,000 for two or more dependents). This credit isn’t confined to child care expenses — it may also be applicable for the care of a disabled spouse or another adult dependent.



Higher Education Credits

The American Opportunity credit can be as much as $2,500 annually (per student) for the payment of tuition and related expenses for the first four years of college. A different credit — known as the Lifetime Learning credit — is available for undergraduate or graduate tuition and for job training courses (maximum credit of $2,000 per tax return). You’re not allowed to claim both credits for the same student’s expenses, and both credits are subject to income-based phaseouts and other requirements.



Sometimes Overlooked

One credit that taxpayers sometimes miss is the credit for excess Social Security tax withheld. If you work for two or more employers and your combined wages total more than the Social Security taxable wage base ($128,400 in 2018), too much Social Security tax will be withheld from your pay. You can claim the excess as a credit against your income tax. The alternative minimum tax (AMT) credit is another credit that’s easy to overlook. If you paid the AMT last year, you may be able to take a credit for at least some of the AMT you paid. The credit is available only for AMT paid with respect to certain “deferral preference” items, such as the adjustment required when incentive stock options are exercised.

Your tax advisor can provide more details regarding these and other tax credits that may be available to you.



Need a Small Business Loan? Follow These Steps

Is it time to put your expansion plan on the front burner? Have you outgrown your current location? Do you need to replace some equipment? There are many reasons small business owners might be in the market for a loan. If you’ll be shopping soon, here are some pointers.

Check your credit. When you apply for a loan, the lender will look at your personal and your business credit histories. Before you start the application process, check to make sure both are accurate and up to date. If there are errors, resolve them ahead of time.




Polish your plan. Prospective lenders will want to know as much as possible about your business. Prepare a comprehensive, up-to-date business plan that provides information about your company (a description and an executive summary) and yourself (educational background and relevant experience). Since your plan may be pivotal in convincing potential lenders to approve your loan, consider including an overview of your management team and key personnel along with some market analysis and a marketing plan.

You should also be prepared to provide financial statements and cash flow projections. Lenders may request personal financial statements for you and other owners as well.

Check your equity. Before you submit a loan application, make sure you have enough equity in the business. Although requirements can vary, lenders generally want a company’s total liabilities to be less than four times equity. A lender may require you to put some additional money into your business before approving you for a loan.




Identify collateral. Lenders generally require collateral, an alternate repayment source that can be used in case your business isn’t generating enough cash to make payments on your loan. Either business or personal assets can be used. If you don’t have anything you can use as collateral, perhaps you can find someone who does who will cosign the loan.

Look for a good match. If you already have a good working relationship with a bank that lends to small businesses, it makes sense to start there. If you don’t, or if your bank isn’t a good match, do your homework. Look for lenders that do business with companies similar in size to your own. Finding a lender that’s familiar with your industry is an added bonus.