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Featured Tips for Small Business
Every month a new tip for small business is featured on our home page. On this page you can read this month's tip, as well as tips from previous months. Note: Most tips are from the reference books that can be found at your local AERN center.
Featured tip for February 2012
Most of your retail sales will be paid in cash, check, or credit card. you'll want to get a deposit or full payment in advance for special orders. But if you're selling wholesale, your customers will likely expect you to extend credit. Accurate record keeping is critical to maintaining your profitability.
Create a permanent record of credit sales, and maintain it separately from your sales slips and invoices. This record should show the date, the invoice number, the amount of any new charges, a running balance of the total amount owed, the date and amount of each payment received, and a record of any invoices, collection letters, and collection phone calls made to this customer.
Start Your Own Restaurant and More, p. 111
Featured tip for January 2012
You buy insurance hoping you'll never need it, but if you do, take the appropriate steps to make sure you get the full benefit from your coverage. Notify your agent or carrier immediately if you suffer a property loss or if something happens that could turn into a liability claim. In the case of a property claim, be prepared to provide the appropriate documentation and proof of loss.
Start Your Own Restaurant and More, p. 159
Featured tip for December 2011
How do you balance the need to hang on to important receipts with the need not to be overrun by the growing mounds of paper? The good news is that the IRS now recognizes electronic versions of financial records. You can therefore scan copies of receipts, invoices, logbooks, and other proof of financial transactions and save them as files on your computer or better, back up these files to a CD-ROM or DVD. Then you get to throw out the hard copies! That's the easiest way to avoid the clutter that builds up with months and years of business transactions.
Starting an Online Business All-in-One for Dummies, 2nd ed., p. 123
Featured tip for November 2011
After ordering your initial inventory, it's time to turn your attention to finishing and decorating your store. Now you know, based on your inventory purchases, what kind of displays you will need. Most landlords will agree to finish out your space two to four weeks prior to the formal start date of your lease, to allow you to decorate and stock prior to opening. If you own your building, you will need to hire a contractor or arrange to do the work yourself. If you use contractors, you should keep up with the progress and make sure the work gets done on time.
Retail in Detail, 4th ed., p. 115
Featured tip for October 2011
If you plan to operate in a jurisdiction that levies a sales tax (as most do), you will need a sales tax number and perhaps a separate business license. The sales tax permit usually comes from your state department of finance, revenue, administration, or simliar department. This is mandatory in order to be able to sell and collect sales tax, but it is also necessary to be able to purchase merchandise at wholesale and to get into trade shows.
Retail in Detail, 4th ed., p. 99
Featured tip for September 2011
Whether you're selling fertilizer or furniture, it's important that you know, understand, and are enthusiastic about the product and its uses and that you are able to relate this knowledge and enthusiasm to your customers. You may be able to get the training and knowledge from your suppliers, but only you can supply the enthusiasm and innate talents necessary to sell your product successfully.
Retail in Detail, 4th ed., p. 41