Feature Spotlight: Davidson Wicker, CEO of Ravetree
As those of you who have known us over the last few years are aware, The Bookkeeper grew quickly. When new employees were brought on board, it became obvious that our old, piecemeal system of digital file storage in one location, a time tracking app in another, and endless emails detailing project updates, would not be sufficient as we scaled.
We were fortunate to come across Ravetree in its early days, and to have the opportunity to adopt it to our business. It has been a true "game-changer" for us, and has really allowed us to stay on top of all of our client and operational needs, even during rapid expansion.
I got to ask Ravetree CEO Davidson Wicker a few questions about himself, his company, and their product.
Courtney: I saw that your educational background is in Applied Physics. How did you transition that into a career in software development?
Davidson: I taught physics for a couple of years as I was building up my coding skills. We did some scientific programming in grad school, so that's where I started to get a taste of how fun programming could be.
Local Entrepreneur Spotlight: An Interview with Dave Baldwin of Baldwin Management Consultants
Courtney recently sat down with Dave Baldwin, of Baldwin Management Consultants, in Raleigh. From his website: "Dave Baldwin is an experienced marketer and self-taught entrepreneur who first went into business for himself in 2007 after ten years in the technical field, spurred on by a desire to help introverted entrepreneurs succeed in business. Dave has worked with clients in a variety of different industries."
Courtney: I can't start without asking about "Let's Not Have Coffee". Why do you think that piece has become so popular so quickly?
My other skill set is marketing copywriting, which is mostly a matter of speaking the customer's language. That's not easy, but I've developed some simple methods for uncovering what's important to customers. It starts with asking the right questions, and I've been told I have a gift for that. Being a consultant is not about telling someone what to do. It's about helping a client create a solution that they feel good about. Most people already have most of the knowledge they need to solve their own problems, but they just haven't looked at their situation from the right vantage point. A good marketing message should help them see things in a new way.
In addition to being an established local entrepreneur, Dave is one of the breakout speakers at the upcoming Triangle Small Business Summit, sponsored by Affordable Promos and The Bookkeeper. Dave will be speaking on Using Technology and Automation to Grow Your Small Business.
Guest Post: "What Does Marketing Strategy Have to do with Bookkeeping?" by Haley Lynn Gray
I have run across more than a few small business owners - some doing okay for themselves, others not - who take the shotgun approach when it comes to marketing their business. The first key is when they tell me that they have “The Facebook”, and they’re doing “ads”, and they are doing a bit of this and a bit of that.
I know that they are likely trying everything they come across, with little regard for the strategy and overall marketing plan. It’s not that I don’t believe in being spontaneous, or even getting creative with part of your marketing. But the reality is that nearly every piece of your marketing should come together; it should all work together, sort of like an orchestra.
The same concept applies to Google Adwords. The lower your SEO ranking, and the less high quality content you have on your website, the higher your cost will be to advertise with Google Adwords.
I see people who toss up a landing page using Web.com, YP.com or others. Unfortunately, if you take this approach, you might be building links to a website that isn’t your own. It won’t help you get that organic reach for your website and you’re losing control of the process. You’ll also end up spending more money for fewer leads, and thus end up with fewer results.
It’s important to have a strategy with all the pieces coming together. Sometimes the tweaks can be tiny, like adding a clear call to action on every blog post, or making a point of collecting email addresses so that you can stay in touch with people via email campaigns. It takes strategy and planning to collect those email addresses and to execute a well thought-out marketing campaign. By thinking through how all of the pieces should work, and with help from a strategist if you need one, you can end up saving a lot of money.
Every business needs a strategy and a budget. So does a marketing plan. Everything should be measured, and data should be collected on how your system is performing so that it can be tweaked and improved. Do these steps for every aspect of your business and you will see savings and a healthier bottom line.
Haley Lynn Gray is CEO and Founder of Leadership Girl, a digital marketing agency, where she uses her skills as a sales and marketing strategist and social media expert to help small business owners grow their business.She combines her years of real-life and business experiences with her MBA from Duke’s Fuqua School of Business to benefit her clients. Haley works with them closely to set goals and put processes in place so they can achieve and exceed their goals.
Haley, along with her team, can also help with social media management, website updates, drip campaign management, and all aspects of business marketing.
In addition to running her business, Haley is a mom of four, a Girl Scout Leader and an author of two best-selling books. Haley is truly passionate about helping entrepreneurs achieve their potential, and empowers them to overcome obstacles in entrepreneurial ventures. www.leadershipgirl.com
Raising a Business from a Puppy
This past weekend, after months of my boys wearing me down, we went to the animal shelter and adopted a puppy. And not just any puppy, but a hound/terrier mix that is estimated to reach 65 pounds at adulthood. After a lifetime of owning tiny dogs (mostly Pomeranians), I knew Charlie would be a new adventure.
As we have been adapting to a puppy-friendly house, I have been thinking about how similar raising a puppy is to growing a business. There are similar challenges, but similar strategies to face them, as well.
Have set rules.
The first thing I did was to set ground rules early on, before the puppy had even set foot in the house. I reminded my sons that he was never to be fed people food, not allowed on the furniture, and that allowing him to roughhouse and "play-bite" was a bad idea.
In a business, it's also easier to practice good habits early on, and to avoid the bad ones. Getting into the practice of having separation of duties and staying on top of bookkeeping is easier when your business is small, and sets you up for success as your company grows.
Protect your assets.
Charlie has a crate he sleeps in and to which he is confined whenever the family isn't home. We have also stressed to the boys the importance of keeping toys and other valuables off the floor and in their rooms, where they are safe from puppy teeth. (I learned the lesson myself, when a laptop cord I'd left next to my desk was chewed through the first day.)
A new business, if not well-protected, can be even more destructive for an owner. Not having the proper insurance or levels of separation can not only be disastrous for the business, but can bankrupt you personally. And since none of those protections can be applied retroactively, it is best to have them early on, before you need them.
Get help from the experts.
I know a lot about animals, but I also know I can't be an expert in every area. We have a veterinarian to help take care of our pets' health. I may be comfortable giving the dog a bath, but I still prefer to take him to a professional groomer for things like a nail trim. And though we are reinforcing training at home, we already have Charlie signed up for puppy training classes. I don't have the time to provide absolutely everything Charlie could need, and there are experts who can offer those services much more efficiently than I ever could.
Businesses also need a lot of help, and it doesn't make sense for the owners to handle everything. Even if you're planning on doing your books yourself, get an expert to help set-up and train your and your staff. If you wait until your business is large to come up with a bookkeeping solution, you'll have an unmanageable beast on your hands.
Guest Post: "The Value of Referral Sources for Your Business" by Haley Lynn Gray
Guest Post: "Accidental Partnership" by Richard Bobholz
“Oops, I tripped,” won’t work too well as an excuse if you find yourself under scrutiny for an accidental partnership. Despite having the potential to be incredibly damaging, these arrangements happen all the time in business.
What is an Accidental Partnership
An accidental partnership is a partnership that was entered into inadvertently. Yeah, I know that didn’t help at all. These commonly occur when two or more businesses get together to try to put on an event, coalition, or joint marketing efforts.
For example: the very first instance I encountered this was very shortly after I began my firm. A colleague approached me and told me all about this great expo that she and a few other colleagues were going to put on, and she wanted to know what risks there were. That’s when I told her about the accidental partnership.
The Law
North Carolina defines a partnership as “an association of two or more persons to carry on as co-owners a business for profit.” Person can mean any individual, company, or association of any type. What constitutes a business for profit is very broadly interpreted and includes any activity where profit was desired, not necessarily achieved.
In the example above, it was actually a partnership of LLCs that was getting together to put on the expo. Since the expo was to be separate from each of their businesses and yet not an incorporated or organized entity, we’re looking at a partnership.
What does that mean for the partners?
A partnership is not necessarily a bad thing. Each of the individuals in the partnership would have had personal liability protection because of the nature of their LLCs, so they wouldn’t lose any personally owned property if something went bad. However, under the partnership, every partner is 100% liable for anything that goes wrong. That means that if one partner causes huge damages to an attendee at the expo, any partner could be held liable. The person who was harmed can choose one or all of the LLCs involved in the expo to sue for damages.
Partnerships are defined largely by contract law. This means that the partners can define a lot of the rights and responsibilities of the owners and of the company itself. There are default rules that cannot be contracted away, such as the duty of each partner to act reasonably prudent when acting on behalf of the company.
Unless a contract specifies otherwise, the ownership, profits, and losses are divided equally. Additionally, the liability and management are owned wholly by each partner. That means that each partner may make any decision on behalf of the partnership, and the other partners could be held liable for those decisions. This is a scary position to be in.
How do I protect myself?
First and foremost, being able to recognize these types of situations before you enter into them will provide huge protections. Anytime you join together with another company or individual to conduct anything business related, there’s a good chance you’re looking at a partnership. At that stage, you should think of whether or not you want to be in that partnership. You can always avoid it by removing the ownership components, instead either being a contractor or making the other participants contractors. In those cases, contractors should get paid, and management should only belong to the owners.
The best way to protect yourself if you do go forward with a partnership is two-fold:
- Create a separate entity for the project or business activity you’re doing in conjunction with other businesses. An LLC acts like a partnership and provides that liability shield.
- Create a clear and concise contract between the partners so that in the event something goes wrong, there are terms in place to protect you. This should also define what the rights and responsibilities of each partner is, as well as how to resolve any disputes as they come up.
Richard Bobholz is the Managing Partner at Law++, a revolutionary and award-winning business law firm in Durham, North Carolina. Law++ sets itself apart by offering flat rate pricing, easy to understand retainer packages, and the highest quality customized legal services to all their clients. They were also the first law firm in North Carolina to become B Corporation Certified.
Links:
Law Plus Plus – www.lawplusplus.com
Facebook – www.facebook.com/lawplusplus
Twitter – www.twitter.com/lawplusplus
LinkedIn - https://www.linkedin.com/company/law-plus-plus
Check Mark Startup – www.checkmarkstartup.com
Working When Overwhelmed
There will frequently be times in your business when you feel overwhelmed. There will be days or weeks when setbacks pile upon themselves, when everything that can go wrong will go wrong, and all at once. And you'll fall behind.
The danger in being overwhelmed is that it can lead to two disastrous pathways: one in which you're paralyzed into inaction by the seemingly insurmountable mountain of tasks before you, or one where you fall prey to the temptation of "multitasking" and fall to pieces trying to do too much at once.
Fortunately, procrastination and busyness are really two sides of the same evil coin. Today we're going to discuss how to catch up on what you need to do, even when the sky is falling.
Let's examine the Who, When, Where, and How of working when overwhelmed.
Who
This seems obvious enough. You, right? Well, if you have employees, there might be some tasks you can delegate. The trick is to assign appropriate tasks in a manner which does not eat up your time or create more work for you. If an employee is already capable and available to take something off your to-do list, that's great. If you are going to have to expend time and energy in explaining the assignment, it is better, while you are behind, to go ahead and do the task quickly yourself. Training can come later when more time is available.
Also, asking an employee to assume additional or different duties is not a time for the two of you to hold a vent session on how busy and behind you are. It's nice to have someone in the business with whom to commiserate, but that will have to come after you're finally caught up.
When
Now! If you are behind on work, start with the first thing on your to-do list and get to it. Don't go make coffee, don't check Facebook "real quick", and don't cultivate your Pandora station. Give yourself little breaks to do those things as rewards for tasks completed. But if you're waiting until everything is "just perfect" to start, you'll never get ahead of the work.
Where
As mentioned before, don't spend too much time getting your environment ideal before you address your to-do list. However, it is imperative that your area be relatively distraction-free. Put your phone on silent; close your office door if you have one. Even if you're in a co-working space, you can put in headphones, or something else that sends the message that you're not available for small talk. Do not have social media tabs open in your browser.
How
Start with taking a quick inventory of everything you need to get done. (No, don't make a complicated, color-coded Excel spreadsheet of your task list. That's just procrastinating with the illusion of working.) Personally, I love the Wunderlist app for keeping to-do lists, as it allows you to make categories and re-order your lists. See what assignments you need to complete first, and what can be put off. (Maybe have a to-do list for today, this week, etc.)
Block off time on your calendar for these tasks. Not only does it help you get in the mindset of, "I am scheduled to work on this, now", it sends a clear message to anyone you work with that you are busy. It particularly helps if you have the sort of business that includes frequent meetings, as it serves as a visual reminder to leave some time for solo work.
Get the first item on your list done as quickly as you can, with no breaks unless absolutely necessary. Check it off your list. Once you have made that first bit of progress, you'll be amazed at how much it motivates you to knock out the next item. Getting a few things out of the way can help you build momentum and feel accomplished. After that, you can battle that "overwhelmed" feeling and start to see that, though you are very busy right now, there is a light at the end of the tunnel and, when you get this backload of work completed, things will calm down for a while.
If work has piled up on you and you're feeling like you'll never be out from under it, try these steps. And stay tuned for our upcoming article on how to get organized and avoid becoming overwhelmed in the first place.
Living a Lie: The mistakes that make entrepreneurs go broke
"You have to spend money to make money."
"Maintain the image of success."
"Fake it 'til you make it."
There is an ideal of the successful entrepreneur as a jet-setting globetrotter, someone living high on their quickly-amassed profits earned through their brilliant business insight. We want the overnight success and rock star-status of Richard Branson. (Comparatively, Larry Ellison, who has over eight times the net worth of Branson, took a less meteoric path to wealth, and is relatively unheard of.)
The unfortunate side effect of our idolization of instant-millionaire entrepreneurs is that many have come to associate that glamorized lifestyle with proof of product value. In other words, "If I look and act successful, people will assume I know what I'm doing and hire me for my services!"
Here are the four most common ways entrepreneurs blow money on an image.
"I've gotta get my name out there."
Advertising is great. Advertising is essential. By all means, advertise! However...
Don't blow your budget on advertising. While seeing your company on a billboard or hearing your name on the radio is a great feeling, don't throw your money away on that illusion of the "big-time" without knowing for sure that you are going to get a good return on your investment. This is a mistake we have seen time and time again.
I once personally witnessed a (now closed) local small business flush away thousands of dollars on a radio ad which they were convinced would result in a flood of customers to their large weekend sale. They scheduled additional staff, opened early, and...no one showed. The ad was ineffective. In their frustration and desire to not have their money wasted, they played the ad on loop inside the store (i.e., the place where customers weren't), succeeding only in driving their employees crazy.
For the majority of small businesses, big-budget ad campaigns are not worth it in the early days. A local tv spot might make you feel like a celebrity (for better or for worse, given the quality of most local tv ads), but it cannot match the per-dollar effectiveness of a decent website, solid social media engagement, and positive word-of-mouth.
"I have to have a nice place to meet clients/customers."
The information age has transformed the world, and the way we do business in it. Meeting clients over coffee or lunch is a perfectly valid option, as is selling products online without a physical storefront. However, many entrepreneurs still seem to feel as if their business is less legitimate without a physical location.
Rent on offices and storefronts is a significant monthly expense, and that does not include furnishings, utilities, etc. Having a separate workplace to travel to on a daily basis has mental benefits in improving productivity, but it is not a cost to be considered lightly, nor is it a business essential nowadays. A gorgeous office with a big mahogany desk is a nice long-term goal, but it is not worth putting your company in the red.
"Yeah, I think I've got a place in the business for you."
We have written before on the dangers of expanding too early. However, this becomes doubly dangerous when owners begin creating positions for the sake of hiring friends and family. Middle management, and other positions which are not directly involved in revenue generation, are rarely necessary in a young company. It is good to be surrounded by people you like and trust, but, until your business has enough sustained profitability, employing people for positions you really can't support is like inviting people onto a raft with a hole in it. Everyone just starts sinking more quickly.
"The company's buying dinner tonight."
This is the big one and, really, the issue from which all the others stem. It appears that, since the invention of commerce, owners have fallen prey to the temptation to treat the company as a personal piggy bank, not realizing that they are essentially robbing themselves. Personal expenses being run through the company tanks profits, and can become risky from a tax perspective. (Inaccurately deducting too many things as "business expenses" sends up a red flag to the IRS.)
In some cases, a failed understanding of accounting reports results in owners bankrupting their own companies. For example, Owner's Draw does not show up on a Profit & Loss report. So, when an owner views the Profit & Loss report, they might see that the company is very profitable, and think everything is fine. Meanwhile, their overspending is bleeding the business's Retained Earnings dry. When an unexpected setback occurs, they suddenly realize they're out of money and the company goes belly up.
So what should you do?
Though stories of those who got rich quick are fun, it has to be accepted that, for the majority of us, success will be a longer journey. Just as we individuals must live within our means, so much our businesses function within their budgets. Slow and steady wins the race, a penny saved is a penny earned, etc.
"He worked hard and was patient, and eventually earned wealth and a comfortable lifestyle," might not be the most exciting story, but it beats that tired tale of the guy who tried to have it all right away and lost everything.
FLSA Compliance: Three Distinctions to Understand in Classifying Workers
The Fair Labor Standards Act has been in the news a great deal, lately. Multiple class-action lawsuits have been filed on behalf of unemployees who believe they have not been fairly compensated.
Many of these lawsuits have ended in either large settlements, or employers paying hefty fines and back wages.
To ensure that your business is in compliance with FLSA guidelines, understand the following three distinctions in classifying those who work for your business.
Who is a contractor and who is an employee?
Some employers have tried to lower their wages and tax liabilities by hiring independent contractors in place of employees. This is an option so long as you follow the criteria for contractors.
Per the IRS's "common law rules", there are three categories assessed when judging whether a worker counts as an independent contractor.
Behavioral Control. For an independent contractor, the business does not direct or control how their work is completed.
Financial Control. If the business controls financial or business aspects of the worker's job (such as purchasing equipment, advertising the worker's services, etc.), the worker is an employee.
Type of Relationship. Whether a worker is an independent contractor or an employee is determined by such aspects as the duration/permanency of the relationship, contracts describing the relationship, benefits provided to the worker, and whether the work performed is "a key aspect of the regular business of the company".
In addition to the IRS classifications, the U.S. Department of Labor provides their own "six-factor realities test" to determine whether a worker might be considered an independent contractor.
1. Is the work an integral part of the employer's business? This is similar to the language in the IRS rules regarding type of relationship.
2. Does the worker's managerial skills affect their opportunity for profit or loss? In other words, is the worker managing the business of the services they provide (for better or for worse) or is the employer directing that?
3. Compare the worker's relative investment to the employer's relative investment. If the business is providing the supplies, equipment, training, etc., the worker is likely an employee.
4. Does the work require specialized skills and initiative? Independent contractors are frequently professionals with specific skills over or in addition to those of the company's regular employees.
5. Is the relationship permanent or indefinite? Though they may work for the company for a very long period, contractors typically operate on a project-based or monthly contract.
6. What is the nature and degree of employer control? This correlates with the "behavioral control" aspect of the IRS common law rules.
Incorrectly classifying employees as contractors shifts tax burden to the workers, a misattribution which might later be remedied in court.
Of course, even if you only hire employees and no independent contractors, you still need to know...
Which employees qualify for exempt status?
"Exempt" employees are, essentially, those to whom you do not have to pay overtime. (Specifically, they are legally classified as being excluded from the FLSA overtime rules.) Non-exempt employees must be paid overtime in any period in which it is earned. As might be surmised from the topic of this article, knowing the distinction is important.
Certain professions are essentially exempt by definition. These are typically the classic "learned professions", such as doctors, lawyers, teachers, clergy, etc. However, they can also include high-level administrative positions. This does not mean that you can sit a secretary at the front desk for 60 hours a week and not pay him or her overtime wages. To be considered high-level, administrative employees must be intensely involved in the running of the business, or in assisting executives to do so. Think of a character like Pepper Potts from "Iron Man", who helps keep Stark Industries running by managing every aspect of Tony Starks's life. She would qualify for exempt status. (If you're not a fan of superhero movies, think of Emily Blunt's character in "The Devil Wears Prada".)
Excluding those jobs which are already considered exempt, there are three "tests" a position must pass to be considered exempt from overtime.
1. The salary level test. An employee must be compensated gross wages of $455 weekly ($23,600 annually) to be exempt.
2. The salary basis test. For any week in which any amount of work is performed, the employee is guaranteed a minimum amount. (Typically, the weekly figure is calculated by dividing a contractually-guaranteed annual salary.)
3. The duties test. This is actually three tests in one, and is designed to protect employees from being labelled "managers" in order to deprive them of overtime wages. For someone to be accurately considered an exempt supervisor:
a.) He or she must supervise two or more other employees.
b.) Management must be their primary duty.
c.) He or she must have genuine input into the job status (hiring, firing, promoting, etc.) of other employees.
To give an example, a store cannot put someone in a "keyholder" position (where they might just be the "Manager on Duty" available to customers, but with no genuine managerial authority over other employees, and the majority of their duties not specific to managers) and then work them over 40 hours a week without overtime.
What if the worker in question is not a contractor nor an employee? What if it's just a young person hanging around to learn the ropes?
For our third and final category, we are discussing...
When should interns be paid?
There have been several high-profile lawsuits recently regarding wage theft of unpaid interns. Young people hoping to get a "foot in the door" in their industry of choice were instead worked ragged with no compensation.
Fortunately, the U.S. Department of Labor has provided a clear six-part set of standards to determine whether an unpaid internship is valid under the Fair Labor Standards Act.
1. The internship must provide similar vocational training to an educational environment. The internship should resemble an educational training program more than it does a job.
2. The intern should be the primary beneficiary in the relationship. In other words, the intern should receive more education and experience from the employer than the employer receives work out of the intern.
3. If the intern is performing work for which the employer would have otherwise hired additional staff or required staff to work additional hours, the internship should be paid. Again, the employer can't use an unpaid internship to get work performed without compensation.
4. There should be no immediate benefit to the employer and the internship should be to the intern's interest. The employer might even be temporarily inconvenienced by the internship. However, under the ideals of an unpaid internship, it is presumed that the employer might recover long-term benefit from later hiring the intern as a well-trained employee, already familiar with company culture and procedures.
5. An unpaid internship can come with no job guarantee. This prevents employers from stringing along an intern for free work with the lure of future employment.
6. Both parties understand that no wages will be paid. An intern must be made aware from the beginning (before their first day at the internship) that this is not a paid position.
5 Things Business Owners Don't Realize They Need
We've all heard, "You don't know what you don't know." This is particularly true in business, where it can be easy to develop tunnel vision and focus on your own expertise at the expense of the company.
Accepting the premise that you don't know what you don't know, we can extrapolate that you can't get what you don't realize you need. Everyone knows they need sales avenues, customers, etc. But there are other business essentials which, though not as well-known, are utterly necessary. Here are five things businesses need (which you might not have thought of yet).
1. General Liability Insurance
It's no wonder that no one likes to think about getting insurance for their business. Buying personal insurance, for your house, car, or health is enough of a hassle. Getting quotes and comparing premiums and benefits for your business? That's just piling on.
However, general liability insurance for your business is an absolute essential. You can hope to never need it (I'm sure you're never planning to get sued) but, in the eventuality that you do, you will be grateful for it. Depending on the nature of your business, Commercial Property Insurance might be a recommendation, as well.
2. Workers' Compensation Coverage
Even more insurance! Laws vary by state but, in North Carolina, you are required to carry Workers' Comp if you have three or more employees, or if you have at least one employee and your business works with radiation. (If your business works with radiation, you'll definitely want those general liability and commercial property insurance policies, as well.)
Many employers try to avoid purchasing workers' compensation policies, but it is not a wise choice. Not carrying coverage opens you up to charges of fraud, huge fines and, in some cases, even jail time.
Now let's move away from insurance and segue into something else that can protect you from being sued by employees or the government...
3. A Good Payroll Provider
Unless your business is large enough for an in-house full-scale accounting department (in which case, we're flattered you're reading our blog), you need to be outsourcing your payroll. Running payroll manually is intensely time-consuming, and very risky. If you do not have a payroll expert on your staff, you are taking a big gamble with your tax withholdings and filings. According to the IRS, 40% or small businesses pay an average of $845 per year for late or incorrect filings or payments. (That's over a third of small businesses.)
Furthermore, outsourced payroll services have become ridiculously inexpensive and painless. We at The Bookkeeper are huge fans of Gusto Payroll, and frequently recommend them to clients. Their customer service is excellent, the interface is user-friendly (even for avowed Luddites), and packages start at less than $40 a month. And Gusto is one of many simple, affordable payroll solutions.
Please, do not take on the headache and risk of penalities associated with payroll, without researching your provider options first.
And while we're on the subject of taxes...
4. Sales & Use Tax
Who has to file sales and use tax? According to the North Carolina Department of Revenue, "Every person engaged in the business of selling tangible personal property at retail, selling certain digital property at retail, renting or leasing taxable tangible personal property in this State, operating a laundry, dry cleaning plant or similar business, or operating a hotel, motel or similar business in this State must register with the Department and obtain a Certificate of Registration. This includes a person who sells tangible personal property and certain digital property, or provides a taxable service at a specialty market, flea market, fair, festival, sporting event, or another event or function."
Needless to say, there are many, many people who should be paying sales tax who aren't. So if you are selling a tangible good, even if it's just from a booth at the fairgrounds on Saturdays, you should be filing sales and use tax. And if you do not know to do so, contact someone who does. If you are caught not paying sales tax, you may be assessed penaltyand interest. The risk is simply not worth it.
Now that we've bummed everyone else by talking about insurance and taxes for four entries, let's move on to what's surely going to be the most controversial item on this list...
5. A Website
In 2016, in order to maintain credibility, your business needs a website. (No, a Facebook page doesn't count, though it's better than no web presence at all.) A website (preferably with a unique, personally-owned URL, and not through a "freebie" site-building service) shows your customers and potential customers that you a legitimate, solid company. Your website is the first place people will go to look for information about your business. Not having any sort of web presence at all can read as very suspicious.
Furthermore, you are doing yourself a huge marketing disservice by not having a website. Web marketing provides the absolute most "bang for your buck" out of any form of advertising. Even if you have a successful business without a website, you could be reaching so many more potential customers and be more available to current customers.
Are there any other little-known business essentials you would add to this list? Let us know, and we'll amend accordingly.