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Business Growth

Business Growth, Cybersecurity

Cloud Computing Benefits and Risks for San Francisco Bay Area Businesses to Consider

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In the olden days, San Francisco Bay Area business owners kept track of their records by hand in the old reliable notebook or ledger. So what an innovation it must have seemed to move business information to a floppy disk that could plug into a computer. The disks got smaller (and a lot less floppy – thankfully), but the idea fundamentally remained that be it floppy, hard drive, thumb drive, or even your own server, your customer and other business data were where you could locate it, most likely right on your premises. I personally know of many businesses that invested quite heavily into onsite server architecture and maintenance so they could keep up with the ever-increasing piles of DATA. Then, all of this was overshadowed by the cloud… Let’s take a look at cloud computing benefits and risks… Cloud Computing Benefits and Risks for San Francisco Bay Area Businesses to Consider“Saying that cultural objects have value is like saying that telephones have conversations.” -Brian Eno Basically, storing data in the cloud means uploading it via the internet to a third party’s electronic storage. You access the information there any time you want and somebody else has the worry of keeping your information accessible and safe. (“Cloud” supposedly comes from a cloud symbol to represent the internet on flow charts half a century ago.) Think of the cloud like a utility. You pay somebody to deliver electricity to your office even though you could try powering the place yourself with your own generator. As long as you keep the generator running, you’ve got power and are able to remain independent of using an outside provider. But suppose a fire or a flood destroys your generator? Out go the lights. Substitute “server” or “on-premises hard drive,” and that same flood or fire destroys your data. Who wouldn’t want to mitigate that risk? But as with all risk management, there are plusses and minuses – and that is also true of using the cloud. So, let’s talk about some cloud computing benefits and risks for San Francisco Bay Area business owners. The good points No hardware headaches. Storing data takes expensive hard drives and other hardware. All you need to store data in the cloud is an excellent internet connection (and of course a good computer – which you’d need even if you didn’t use the cloud). Providers by their nature must have the best equipment; costs of maintenance and repair also flows to them. Scalability becomes easy from your perspective, and, despite startup costs, long-term savings can also add up as you pay only for the cloud services you use. Just make sure upfront that it’s clear what services you’ll be able to use. Work on the run. Anytime access means you and your staff can work on business data anywhere from any device — which also means improved productivity. Support system. With the right cloud provider, you just hired a first-rate tech department. Most services have help available to you 24/7 – and because providing service to many clients is the providers’ bread-and-butter, their IT people are generally really good. Similarly, the cloud provider also must handle all the outage dangers and security updates (see below). They usually have a lot of backup servers in different locations to guard against downtimes and disasters. Risky business. If you’re leaning toward cloud storage, this can be the clincher: The provider has the burden of security. The one who’s really hurt most by a hack, the provider, will and can invest more than you in firewalls, encryption, backup servers, and other cutting-edge cybersecurity. Now for some cloud computing risks… Troublesome questions Bad connections. As I said,to access your cloud service, you’ll need an internet connection. Break that link for whatever reason, and you can’t get to your data – and this “downtime,” even for a short period, can cause a lot of pain. Control issues. Having someone else oversee and maintain the cloud infrastructure that houses your data can make you feel you’ve lost control. You populate the infrastructure but have little administrative control over how the data is stored. How easy is it going to be to migrate your data? Are you subject to vendor lock-in? Spotty support. That top-notch tech crew we talked about: Do you have access to them or are you expected to first try endless FAQs and online DIY fix-its? Security. Do you really want someone else guarding your data, even if their controls, firewalls, and other security measures are probably far superior to yours? Research does show that most data breaches and cyberattacks come down to customers’ mistakes and human error, so the provider can probably take good care of your data. But what if they can’t? Who’s liable? What are the damages and coverage? For that matter, what happens to your data if your provider is acquired by another company? Have these matters spelled out in your contract ahead of time. Sending your data to the cloud is appealing, but it also comes with some catches. And before you up the ante on storing your business data, you’ll want to think through some of these cloud computing advantages and risks. If you want some help with making the right decision for your San Francisco Bay Area business, let us know. Another thing we can help you with is protecting your business from financial vulnerabilities. Whether that’s leaky books or a future tax-related disaster … we can spot problems coming from a mile away. If that’s something you want in your corner, let’s chat about it: Patti (408) 241-4100  Gale 408-775-7800 To your bottom line, Patti ONeill and Gale Bergado(408) 241-4100ONeill & Bergado

Business Growth, Business Tax Planning

Disaster Recovery Planning Your San Francisco Bay Area Small Business Probably Needs

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The phone rings in the middle of the night and a voice says your office is on fire. Early on a long weekend, that old pipe in the back finally bursts and no one will see the water for days. Or suddenly the Weather Channel’s saying a hurricane is barreling in your city’s direction. Oh, it’s always the other guy, you say? Ask the folks in Louisiana and Mississippi this week, or those out West most of this summer. Nobody in New York City ever used to even think about flash floods … According to FEMA, about *half* of small businesses never reopen after a disaster. Worse yet, one in four fails within a year, and nine out of ten shut their doors within two years. Not odds you want to bet against. So what do you do? If you’ve thought ahead, you pull out your disaster recovery plan for your San Francisco Bay Area small business. Disaster Recovery Planning Your San Francisco Bay Area Business Probably Needs“Success is the residue of planning.” – Benjamin Franklin When disaster hits, you have two jobs: 1) Stay open that day and 2) stay open in the days ahead. So, let’s take a look at the difference between a business continuity plan and a disaster recovery plan for your San Jose business, and why and when you need both… First off, both plans are actual documents (and they work best if you develop and use them together – in fact, a lot of people use the terms interchangeably). Unlike all those other reports you read once and then buried, these plans you pull out once a year to keep up to speed on preemptive approaches – in other words, you’re not waiting for those floodwaters to seep under your door before you know what to do. Your business continuity plan outlines how your business will keep going during a disruption. It includes procedures and instructions you and your team will follow when bad stuff drips (or gushes) down. Disaster recovery is how you’ll pick up your business again after a disaster… how you’ll get the doors unlocked… how you’ll start seeing customers again in the days ahead. Seems like common sense, right? But can you believe that a survey last year found more than 50% of companies don’t have a business continuity plan? Or that one in five execs of small and mid-size businesses don’t have a recovery plan? It’s difficult to imagine why anyone would risk the lost business, make themselves vulnerable to legal risk, a damaged reputation, or even possible fines and the loss of a business license. Just keep going To put it in simple terms, your business continuity plan looks like driving to the gas station while your engine warning light is still on — you’re trying to keep things going while the emergency is still happening. It doesn’t have to be a storm or wildfire on national news, either – you can even get hammered by something as small as a local power outage. The key is to assume that (for a little while) your equipment, workforce, office or workplace, third-party vendors, and just about everything else are unavailable. Here are a few questions you’ll want to answer on this front: – What jobs around your business can you NOT survive without, and who does those jobs? – How are you going to contact your people? Calling on the phone is everybody’s first thought, but don’t forget about texting and social media. You can keep staff updated on your Facebook page if you need to. – Who should your employees contact first? What shouldn’t they do? (Want ‘em talking to the local news?) – How will you keep phones and computers/servers working? Are there laptops somewhere else you can run on for a while? – Will you have to move your business, even temporarily? Where could you go? Your new normal Your disaster recovery plan tells you how to get your business back to normal as fast as possible. For instance, your recovery will probably hinge on technology. Part of your plan could be laying hands on your backup files that are in the cloud or on a portable hard drive that you keep somewhere far from your office. What’s your long-term plan to finance ruined computers? And of course, in this wonderful world, not all disasters involve water, fire, or wind. Suppose your business gets caught in a public relations mess… a bad lawsuit or a data hack. Part of your recovery plan should cover what statements you’ll make (deny all knowledge, we’re investigating, we can’t comment at this time, etc.) Both is better A lot of people combine the business continuity and disaster recovery plans. Suppose your inventory goes up in a warehouse fire. ‘Continuity’ means you call all your employees and vendors. Your recovery involves telling staff what to tell customers and notifying the right people at your insurance company. The point is, both types of plans work to keep you ahead of a problem. Do not wait to make them. If we can help let us know. You can even make that part of the disaster recovery plan for your small business. If that’s something you want in your corner, let’s chat about it:Patti (408) 241-4100 Gale 408-775-7800 To your bottom line, Patti ONeill and Gale Bergado(408) 241-4100ONeill & Bergado

Business Growth, Business Tax Planning

Small Business Tax Credit Updates San Francisco Bay Area Owners Will Want to Consider

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We wanted you to know about something that came across our desks the other day because it is potentially very good news… Not many are talking about this, but there have been some MAJOR new Economic Injury Disaster Loan (EIDL) program updates from the SBA… While I like to steer clear from “recommending” that anyone take out a loan, San Francisco Bay Area businesses seeking low-cost access to capital absolutely should be evaluating the EIDL option in light of the new and highly favorable changes. These are 3.75%, fixed-rate, no fees (if you apply directly through SBA), 30-year repayment term, and no personal guarantee if the amount is $200,000 or less … … those are pretty incredible terms. Thought you’d be interested. (Though the response time on actually receiving increased funds has widely run the gamut, from what we’re hearing. Don’t expect that this will be a “rapid” infusion of cash.) That’s just one of a few changes you should know about. The rest, we’ll cover below… Small Business Tax Credit Updates San Francisco Bay Area Owners Will Want to Consider“I always tried to turn every disaster into an opportunity. ”  – John D. Rockefeller Businesses and their owners the country over have been enjoying some great small business tax credits from the federal government in the last 18 months. But, as 2021 is winding down, it’s important to know that some of them are on their way out. Small business tax credits soon ending for San Francisco Bay Area employers this year: So, let’s start by talking about the Employee Retention Credit (ERC), which has been a tax boon to small and midsize San Mateo businesses trying to keep people on the payroll. Washington looked to keep the ERC available through the end of the year, but the powers that be on Capitol Hill may pull the plug early as part of that headline infrastructure bill. Nobody knows right now if the ERC or some version of it will stay alive. Stay tuned. Small business tax credit changes in the pipeline – maybeNow we come to what might happen. Lawmakers love to change things, and there are proposals right now to do just that to your taxes … and, of course, not always in a good way. You have to plan for a lot of outcomes, sometimes. For instance, if your company is what’s called “a pass-through entity,” there’s a new bill in Washington you should know about. The Small Business Tax Fairness Act will try to lower the amount of money you can make and still get the tax deduction for your “qualified business income.” On the plus side, the Act does also look to expand who can take the deduction to include accountants, financial advisors, attorneys, doctors, and other professionals. Please get in touch if you’re one of these companies and want to know more. Never a dull momentRecent events have inspired some to think, “I’ve had it. I’m selling my San Francisco Bay Area business and retiring sooner rather than later.” If you’re in this camp, as far as taxes go, you have two choices: Slam on the brakes or put the pedal to the metal. Crazy, right? But this schizophrenia can be explained because “tax the rich” proposals in Washington want to hike capital gains taxes and kill the step-up in basis (a type of valuation for tax purposes that historically has protected heirs from larger tax bills). So, you’re stuck. Sell your business down the road, and you could be socked with a big capital gains tax bill. Leave the business to your heirs instead, and the IRS may wallop them eventually because by that time they’ll no longer have the shield of step-up in basis. What to do about these small business tax credits from the federal government coming to an end? Well, the discussion about the above on Capitol Hill is still, right now, just proposals. That could change any day. Watch for more back and forth in Washington. And, for the rest of us in the real world, more suspense as we plan for taxes. If you sell online, watch outLet’s look at state taxes, too – especially if your San Jose business has joined the e-commerce boom, and you sell over the internet. You may have noticed that states (and other tax jurisdictions – watch out here for cities and even towns) are always claiming to be short of cash. With not as many people staying in hotels or eating in restaurants over the past several months, that’s a lot of sales tax states didn’t collect. So, what are they doing about it? Looking around for small businesses that sell more products online. This actually started a few years ago with a Supreme Court case called Wayfair. It basically gave the green light to states to start demanding that if you sold enough in their area, you have to collect and send back to states sales tax on the purchases no matter where your business is. Sounds simple – except every state and more than a few municipalities around the county have their own tax rates and deadlines for you to file and pay. And they’ve plenty of penalties to whip out if you mess up. Typically, you do have to sell about six figures annually in the state or have a set number of transactions – but these rules change all the time. In this and all tax matters, your business is too valuable to leave to chance. Talk to us if you need help with this ever-changing world. We’re always here to help you with this stuff … and ALL of your business. Patti (408) 241-4100  Gale 408-775-7800 To your bottom line… and to paying less tax, Patti ONeill and Gale Bergado(408) 241-4100ONeill & Bergado

Business Growth, Business Tax Planning

Is The Employee Retention Tax Credit Right For Your San Francisco Bay Area Business?

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There is a LOT of smoke emanating from Congress right now. As usual, with Congress, there are always rumors and mutterings — what matters is what is actually signed into law. And we’ll keep you up to date on what you might need to know. But speaking of Congressional acts that have been signed into law … Wouldn’t it be great to get money for just having kept your San Francisco Bay Area employees afloat during the last rough-as-nails year or so? Well guess what? Maybe you can. Trouble is, Congress may soon take this deal away. Or it may not. Here’s the latest word on that and how you can still cash in – for now. Is The Employee Retention Tax Credit Right For Your San Francisco Bay Area Business?“Somewhere, something incredible is waiting to be known.” – Carl Sagan Late last year the Taxpayer Certainty and Disaster Tax Relief Act of 2020, following up on earlier relief laws, allowed the good folks at the IRS to give San Francisco Bay Area employers like you a real tax break. The Employee Retention Tax Credit (ERC) is a refundable tax credit – sort of a thank you from Uncle Sam – on the employer share of Social Security taxes that your business pays if you’ve been hit by the pandemic but kept your employees on payroll instead of laying them off.  Here’s how it works: If your San Francisco Bay Area business qualified, you could whack a chunk off what you paid in tax equal to, for this year, 70% of most wages you paid to employees through June 30. This applies to wages and compensation, in general, that are subject to Federal Insurance Contributions Act (FICA) taxes. How do you qualify? Two ways, primarily: You got dinged in the down economy or the government “closed you down” during a particular quarter because of the pandemic. Under the newest rules, if your business took at least a 20% hit for a quarter in 2021 compared to the same quarter in 2019, you are eligible. ERC regs for 2020 required a 50% decline over the same quarter in 2019 (or a government shutdown). A company can now have up to 500 full-time employees and qualify, up from 100 under old ERC regs. (Bigger companies can also qualify, but the wage restrictions are a little tighter.) The newer rules added ERC eligibility for the second half of this year for more businesses like public universities, hospitals and medical-care providers, “recovery startup businesses” that opened their doors after Feb. 15, 2020, and for all wages including for work and for paid time off. You can only get seven grand per employee per quarter max in 2021 but still, who couldn’t use this kind of cash? Where do you sign up? Not so fast – enter Congress Even as we speak, the House of Representatives is batting around the Bipartisan Infrastructure Investment and Jobs Act. It passed the Senate recently and the House is tweaking its own version. What’s that got to do with your tax break for keeping people on the job? A lot, as it turns out. Capitol Hill is thinking of killing the ERC for the last quarter of this year. Even if they don’t, they might tweak it so your San Francisco Bay Area business can’t qualify. Stay tuned – this could change or all be settled any hour. We’ll keep you up to date. Back to the future When the future’s uncertain, reach for the past: You can basically go back in time to apply for the Employee Retention Tax Credit . For instance, one of the beefs with the ERC in 2020 was that you couldn’t claim the credit if you’d received a Paycheck Protection Plan loan. Late last year, though,  the federal Consolidated Appropriations Act changed all that: Suddenly you could retroactively claim the ERC for payroll periods that were not paid with PPP loan money. No double-dipping, as it were. What’s it matter if Congress kills the ERC for the rest of this year? That’s when “retroactively” becomes a big word – you can amend past returns. To review: To qualify for the ERC, you had to have gross receipts fall significantly in a quarter of 2020 or 2021 compared with the same quarter in 2019, have operations unusually impacted by government order from the health emergency or you began business operations after mid-February 2020. Fit any of those? Then no matter what the House does in the coming days/hours/minutes, we can help you retroactively file using IRS Form 941-X (sounds like a spaceship but let us worry about that…) and possibly cash in with an ERC.   Yeah, you have to keep a lot straight to claim this tax credit – it would be no wonder if you’re confused. But if you think you fit those circumstances in any way, if you want to review your 2020 or 2021 quarterly payroll tax returns, or you know another business owner who could benefit, let’s chat. (408) 241-4100  To your bottom line… and to using the tax code to your advantage, Patti ONeill and Gale Bergado(408) 241-4100ONeill & Bergado

Business Growth, Business Valuation

San Francisco Bay Area SMB Owners – Don’t Panic About The Business Supply Chains

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Remember when the monster cargo ship Ever Given jammed the Suez Canal? After the Givenhad been stuck just five days, almost 400 other freighters were backed up waiting to pass through the Canal. Experts began predicting temporary shortages of everything from exercise bikes to coffee, cheese to semiconductors. For once, they were right — and not just because of one stuck ship. Recent events have proven how the world’s business supply chains can snap pretty easily (even now as I write, dozens of giant freighters wait off the coast of California because there’s no dock space). And have you been in Costco or Walmart lately looking for toilet paper or toys from China? Sometimes all that happens is a great chance for the store workers to dust the empty shelves and for you to pull out your phone and hope you can find online what you came into the store for. Well, your customers are no different if your business supply chain is weak. And soon they’re going to take their business elsewhere. Frustration is the one thing not in short supply these days. But don’t panic. I have thoughts. Before I get to them, one more reminder that October 15th is the deadline for extended federal personal tax returns for 2020 (for the vast majority of the country). If you need a quick chat on this, grab time here: (408) 241-4100 Now, let’s talk about those business supply chains… San Francisco Bay Area SMB Owners – Don’t Panic About The Business Supply Chains “Teach a parrot the terms ‘supply’ and ‘demand’ and you’ve got an economist.” – Thomas Carlyle First, as a frustrated San Francisco Bay Area business owner you’re not alone. There are many reasons that stuff is scarce for everybody now: If one thing gets hung up in transit in the business supply chain, then other stuff made from that first stuff gets hung up, too — often stuff your San Francisco Bay Areabusiness needs to function and to sell. Foam for furniture, electronics for cars, chemicals for paint. Prices spike for necessities like lumber for pallets. The dozens of other points in the chain are also vulnerable to labor shortages and other breakdowns. It’s like getting the kids off to school on a crazy morning: One hitch and the whole schedule can fall apart. … just like your relationship with your San Mateo customers when they’re staring at your empty shelves. Seat of your pants You may find yourself relying on gut feelings and improvising through your company’s supply crunch in the coming months. Money makes the world go ‘round — and it can make the supply chain go ‘round, too. Don’t spend like crazy, of course, but the hard truth right now is that you may have to pay a little extra to keep supply lines flowing. That means keeping your capital liquid and available as much as possible. Maybe a flexible line of credit can help keep your inventory stocked. Your other moves: It will get better (fingers crossed) Remember, when the business supply chain breaks, it’s not just your cupboard that’s bare — everybody loses money. And everybody’s struggling to fix the problem. Managing supply chains is no longer some minor business function stuck in the back office. The big boys have learned the hard way to make it an operational priority — probably for months to come — and give the job the resources it requires. Your business is in the same boat, so to speak, just on a smaller scale. You’ll get through this, and we’re here to help you do it. (408) 241-4100  Stay safe and sane out there, Patti ONeill and Gale Bergado (408) 241-4100 ONeill & Bergado

Business Growth, Business Valuation

How San Francisco Bay Area Businesses Can Raise Prices Without Losing Customers

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Are you watching your COGS these days? (I, ahem, hope you know what those letters stand for, because if not … well, then we should DEFINITELY talk. (408) 241-4100 ) Has it gone up? You’re probably not alone given what kind of signals the economy is sending these days. In which case (and you’ve probably already thought about this), figuring out how to raise prices without losing customers is especially important. You can ignore the likelihood of everybody looking to cut costs as their COGS increase (if you are B2B), or as San Francisco Bay Area consumers feel the tightening in their wallets as prices go up. OR (and I like this way better), you can be strategic. So, I thought I’d offer you some ideas today. How San Francisco Bay Area Businesses Can Raise Prices Without Losing Customers“Things work out best for those who make the best of how things work out.”  – John Wooden It’s heartbreaking to watch San Mateo small businesses go out of business or not bring home enough bacon simply because they get trapped into thinking about their customers and their pricing in the wrong way. And as such, they end up losing customers. When you differentiate yourself based on price alone, you simply cannot provide value. You end up competing on the wrong playing field, and it’s not one in which you’re built to win. Yes, price competitors have been in operation since the days of the Greek agora, but it’s important to understand that if YOU want to build a sustainable, scalable — and, one day, SALE-able — business, a core foundational piece of that puzzle is that you must be charging enough for your goods and services. Many San Francisco Bay Area small businesses remain in perpetual survival mode because of how they price their products. They believe their only competitive advantage lies within their pricing, so they run an ever-accelerating race to the bottom. But even in shaky times (which, if you’re looking at current economic numbers, we are NOT currently facing), people still have money to spend. So, it stands to reason that if you’re not bringing it in, you’re simply not doing a good enough job showing them that your place of business is the best place to spend it. You see, it’s all about understanding the specific value you provide. And if you’re not clear on it, your prospective customers certainly won’t be. So, how can you do better in communicating your specific value? Well, I’ve got three ideas for you today… How to Raise Prices Without Losing Customers Tip #1: Reassess your primary selling pointsYour prospects have no way to know if you are the best option for them. To regular consumers, most options are the same — in almost every industry. When you compete on price, you attract … those who are shopping based on price. And, of course, they see you as “just like everyone else.” Then the real question is what makes your San Francisco Bay Area business different? And how do you show that to the marketplace?  That’s what you need to focus on and figure out how to quickly tell that simple story. Your prospects must turn to you because they trust you and because they see your business as worth the money — not because you’re the cheapest option. How to Raise Prices Without Losing Customers Tip #2: Tap into customer psychologyWhy can Nordstrom charge higher prices for products found elsewhere (i.e. cars, purses, ties, shoes)? It’s because of the VALUE they’ve attached to their brand (i.e. social prestige, enhanced customer service, increased self-esteem). They’ve moved themselves out of the commodity market and into the heart, emotions, and primal urges of their clients.  You need to (and can) do the same thing in your business. Yes, your customer can get a widget or receive a service for XYZ … but what AREN’T they getting when they work with that other option? Focus on identifying these aspects of your offering. Your value is not derived from the “features” of your product or service … it is found in the intangible — emotional — benefits from working with or purchasing from YOU. How to Raise Prices Without Losing Customers Tip #3: Evaluate your offerings for bundle opportunitiesFor service professionals, there are only so many hours in a day and you’ll reach an income plateau very quickly when you are billing by the hour. Not to mention that you have to start every month over at zero — and there’s little stability in that. So, my advice? Begin billing on a flat fee/value basis.  If you’re scared to shift, just think of the *value* your customers will experience having a professional using flat fee billing. They won’t be nickel-and-dimed for every phone call, email, and message that comes through the office. They can communicate with you as they wish without fear and they can pick their price point of choice if you have multiple flat-fee options. Many people are willing to pay more for certainty. It’s a win-win for them — and it’s very much a win-win for the health/sustainability of your business. For retailers or product providers, you can only play “margin games” for so long. So, identify monthly services that might augment the experience of using your products. Consider what your customers actually want (on an emotional level) and the problems they face in using your services. Restaurants could initiate a “VIP club” with special perks, automatic billing, and exclusive choices. Merchants can create enthusiast groups, or lessons and coaching. The point is to go *beyond* the widget … and into the heart of your customers’ desires. Remember this: There are always consumers out there with more money to spend. And they NEED your products or services. It’s up to you to convey the intrinsic value of working with you (even at a higher price point) in order to make a revenue shift with what is left of the year. If you need help thinking this through, we’d be happy to give some insights and get you on the

Business Growth

How San Francisco Bay Area Businesses Can Build a Quality Prospect List

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How’s your client/customer list faring these days? If you’re like every other business around you, you’ve got some churn happening. People move, change jobs, experience a shift in financial circumstances … the list goes on. Even in predictable economic times (remember those days?), the task of finding new customers to replace the existing ones is an ever-present challenge for San Francisco Bay Area business owners. You might have a great prospect list to start with – or you might not. The truth is that no matter the size of your list, you have a ways to go with a pickaxe and shovel before you turn those names into satisfied buyers. Building a prospect list starts with looking at your current clients, looking around your market area and figuring out the best ways to reach people. It’s a lot of work – but it’s worth it. Before I get into this topic today, one quick reminder: Let’s try to grab a time to talk about your San Jose business before year-end, just to ensure that we are capturing every available tax-savings strategy for you. Find us here: Patti (408) 241-4100 Gale 408-775-7800 Now, let’s discuss building that list… How San Francisco Bay Area Businesses Can Build a Quality Prospect List “Master the topic, the message and the delivery.” – Steve Jobs Growing a prospect list starts with your current customers – and the ones you like working with most. Look at them. What makes these folks special? What do they have in common when it comes to your business? Is there one service they use a lot or a product they always buy? Are they all in the same industry, or do they live in the same area? Any prospect who has a lot in common with your best customers is going to be a hot prospect indeed. Quick note: A “prospect” is not a “lead.” A lead is often little more than somebody’s contact info. A prospect is somebody who, for whatever reason, is a whisker more likely to want to do business with you. Prospects also don’t even have to be interested in buying right now. They just have to fit the general characteristics of the folks who already buy from you. Another way to find good prospects is to see what markets are doing well in your area. “Market” can mean a lot of things, from more people moving in to more businesses opening. Sometimes all it takes to spot an opportunity is taking the time to look. And of course, what’s the competition up to? Probably most times you look at the other guy with envy that they’re doing something you can’t. When you’re building your prospect list, though, flip that around: What’s your competition not doing that you can? Look around your company, too. People know people. You may have so-so prospects that can turn into great ones because somebody right under your nose has the inside story. Ask. Get the word out Now that you’ve got this list (with luck, a big one) of people who have a better-than-average desire to buy from your San Francisco Bay Area business, what do you do with it? Thing is, you’ve got a lot of ways to reach them today – a lot – but you’re going to be just noise if you don’t speak loud and clear and right to their interests. Some mediums to consider… Direct mail. Even though the mailman still brings you a lot of recyclable material, you have to admit that physical junk mail isn’t as common as it used to be. That could be your opening. Depending on how many people you’re trying to woo, invest the time for handwritten notes or the expense of mailing a book. Sure, these aren’t cheap, but they could pay off when you’re trying to reach the best of the very best of your prospects. Requesting a signature on delivery is a relatively cheap way to stand out, too. Despite the bucks for printing and postage, direct mail still works. And so does this… The phone. Nobody likes getting cold calls and nobody likes making them – but salespeople say they still work. Study your list well, let folks know about you before you call and you might get somebody keen to buy (a happier cold call for everybody: the warm call). Social media. Join online groups where your prospects are and then behave like any other member: helpful but not like somebody looking to sell something. Sooner or later, they’ll recognize your expertise. Email. Most people say they prefer to be contacted by email – yet the open rate on unsolicited email remains small. Best bet is to only contact and communicate with prospects this way if they’ve given you permission. Drop any the moment they ask you to. List to-do’s Your list will soon have to tell you more than just somebody’s address. It needs to provide you with actionable data. So think about: Happy prospecting. If there’s anything else we can do to help you and your business get ahead, just let us know.Patti  (408) 241-4100  Gale 408-775-7800 To your (faster) growing company … Patti ONeill and Gale Bergado (408) 241-4100 ONeill & Bergado

Business Growth

Employee Retention Strategies for Proactive San Francisco Bay Area Bosses

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Your employees are happy, right? They’re never going to leave you … right? They’re not looking for another San Francisco Bay Area job … uh … right? You know what the answers are: Maybe, wrong, and I sure hope not. Sooner or later, the advantage will swing back to you, the boss who does the hiring. But until then, the world’s changed and keeping people on the job takes, well, work. What do your employees want in a new job, anyway? And what are some employee retention strategies that will actually work right now? These are questions many San Francisco Bay Area bosses like you are asking these days… And also, another thing: Let’s try to grab a time to talk about your business before year-end, just to ensure that we are capturing every available tax-savings strategy for you. Find us here: (408) 241-4100 Employee Retention Strategies for Proactive San Francisco Bay Area Bosses“By working faithfully eight hours a day, you may eventually get to be boss and work twelve hours a day.” – Robert Frost The economy is still sputtering, scads of people are unemployed — yet San Francisco Bay Area bosses like you are crying for workers (that’s maybe the biggest reason you don’t want your folks leaving right now, even if there are one or two of them you’d love to say good-bye to …). What’s going on here? What’s going on is that one out of every four people quit their job this year. And they didn’t do it because they’re such big fans of credit card debt and starvation. That number is also up from previous years – even the last few years when people first began quitting in droves. They’re calling this “the Great Resignation.” Clever name, huh? Except that if you’re trying to replace an employee right now, then maybe you’ve found there’s nothing “great” about it. Things are only getting harder for small businesses that need to hire workers. But hey, bad news rarely travels alone – and the Great Resignation is no exception. Almost two out of every three workers are actively looking for a new job. Look at three of your employees (stare discreetly). Two of them might well be sending out resumes. Anybody grumbling more than usual? Out a lot? Not seeming to give a hoot? You might have employees looking for greener pastures. What you can do: Some employee retention strategies that actually work Speaking of “greener,” you can certainly try paying your people more. That still floats the boat for a lot of employees. But you have to realize that others may be just plain looking for something else. Outta here: Flexible hours and being able to work from home are two huge reasons people are bailing. A recent survey found that more than half of workers in all professions want a job that lets them work from home. A few companies (maybe your competitors) let them have that. Food for thought? If you’re coming off a period of employees working from home, look back at that. What went well? Would it kill you to keep doing things that way? Sorry, but you have to think on your feet to run a small business these days – don’t just do things because that’s the way they’ve always been done… Who’s quitting? Reports say that women and workers who have about 10 years with a company are most likely to walk right now: re-thinking careers, looking to spend more time with family and friends. Others are waiting to see which way our health crisis goes, and others are just plain burned out. Your folks aren’t looking to jump ship just because they want a change of scenery. Heading off this problem is going to take more than your checkbook. Find out what they want and see if you can keep them by planning ahead. Ask ’em: Is there anything you can do to make an employee’s life a little easier right now? There’s no guarantee that they’ll answer with 100% honesty (and no, you don’t have to volunteer to clean their house…), but if you show an interest, they might just come back with a workplace tweak that the two of you agree on. What they do best: A lot of employees say they’re quitting to pursue their passions – or at least something closer to what they really want to do. What do you really know about your workers, what they like to do, and what they’d be great at? Find out – maybe there’s room for that skill in your business. Hit them with a little more authority or responsibility to go with that extra pay. You’d be surprised how many people want that combination, not just the raise. See if you can train them, too. That never hurts. Spread the word: If you have to hire, don’t look to want ads to save you. Networking might also come up drier than usual, since everybody’s looking for workers. Go with referrals – in fact, if your current workers are happy to refer you, they might not be as close to leaving as you think… Expect any new hires that you do find to be hard negotiators. Nobody wants to do all the wooing, but new hires hold a lot of the cards right now. You and your business can get through this. Let us know how we can help.(408) 241-4100   To a happier, healthier company … Patti ONeill and Gale Bergado(408) 241-4100ONeill & Bergado

Business Growth, Business Tax Planning

San Francisco Bay Area Business Owners: Beware the Sales Tax Nexus

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If your San Francisco Bay Area business sells a lot online, then we’re coming into the most wonderful time of the year. And this year, your customers will probably shop your website (and elsewhere online) EARLY in order to bypass all those supply-chain snafus. Cha-ching for you. Just don’t forget the taxman – and we don’t mean the IRS. We mean the sales tax in states where you sell your stuff. Yes, if you sell enough online, you’ve got to pay attention to the sales tax nexus. You see, you’d be amazed at how many times this topic becomes “a thing.” In fact, getting this wrong is one of the primary ways that businesses get in trouble with various revenue agencies (IRS and state revenue offices) because they don’t handle it properly. But before we dive into this, let’s make sure that your business (and your family) is also capturing every available income tax-saving strategy available right now, and do a little taxplanning: Find us here: Patti (408) 241-4100 Gale 408-775-7800 Now let’s get a little scary together, shall we? San Francisco Bay Area Business Owners: Beware the Sales Tax Nexus “The Internet, once heralded as an exciting new medium of communication, is now little more than a vast mail-order catalogue.” -Tom Hodgkinson Everybody who lives in a state with a sales tax knows about that extra little bit that gets tacked on to purchases. That’s usually the point in the retail cycle when you hear muttering about the mayor, the governor, and/or everybody in the state capital. That little bit is the local sales tax. Most states have one. What about when you buy something online? Just before you hit “check out,” that little amount gets tacked on there, too. What about when you’re the one selling over the internet? Have you ever heard of Wayfair? The home-goods and furniture company that does almost eight figures a year in global online sales? That Wayfair? How about the U.S. Supreme Court’s 2018 Wayfair decision? No? Well, that’s when our high court agreed with the state of South Dakota, which had long claimed that Wayfair owed sales tax from tons of transactions in that state. The Supreme Court then basically gave South Dakota the authority to tell all online sellers that if they sold more than the low six figures or a couple hundred sales a year in the state, then they had to collect and send back South Dakota sales tax. That’s because a company then had economic nexus. “Economic nexus?” Sounds serious. Is there a cure? Sure. If you sell enough, collect sales tax from your online customers and send it back to the state. Period. Taxing in a boom Now, most states enforce economic sales tax nexus – not to mention all the cities and even towns out there that levy their own sales tax based on economic nexus. (Not-so-fun fact: An office or a warehouse is one thing that can give a company “physical nexus.” So can your staff working remotely in another state – check with us ASAP on this…) States’ timing is suspiciously perfect: E-commerce and buying over the web were already red hot before the pandemic made it explode. Research shows that more than nine out of ten internet users worldwide have purchased products online and that e-commerce is growing annually at about a 23% clip. Holiday click-and-buy in the U.S. alone this year is expected to be in the hundreds of billions of dollars. That’s a lot of sales tax. In this case, your customers pay the tax. You collect and keep it for a set time – say a calendar quarter; depends on how often a tax jurisdiction makes you file – and then you send it into a department of taxation/revenue. Your next steps with the sales tax nexus Funny thing about people in the government who slap you with a tax: They tend to want to see the money. And they can get nasty when they don’t see it. Think “sales tax audit,” “fines,” or worse. If your San Francisco Bay Area business sells a lot into a state, check with that state’s department of taxation and see what the deal is under “sales tax economic nexus.” If you are over or near the thresholds of dollars or number of sales, keep the following in mind: – Taxability of your products. Not all jurisdictions levy sales tax on everything sold all the time. A lot of states have sales tax holidays for occasions like back-to-school shopping, for instance. Jurisdictions sometimes split hairs on tax exemption. Some states exempt groceries from sales tax, for example, but require you to charge a sales tax on other kinds of food. It can even depend on whether chocolate or other candy is involved, and what a state considers “candy,” and so on and so on… aren’t taxes fun? Again, check with the state. – Register. If you think you’ve got nexus in a state, register there to collect and remit sales tax. You can usually register online, which is fast. Most states let you register for free, but not all. – Keep track. You have to calculate the right tax to collect and send back; there’s software that can help with this. You also need to keep a calendar of when you’re supposed to file your sales tax return with what state and to keep up on all the notices. The taxman loves to send notices – and some might need your quick attention. You can handle this new tax obligation with a little work and attention – but don’t let it slide. If we can help, please let us know. Patti (408) 241-4100    Gale 408-775-7790 To your San Francisco Bay Area business staying out of hot water … Patti ONeill and Gale Bergado (408) 241-4100 ONeill & Bergado

Business Growth

ONeill & Bergado’s Rundown of the 5 Basic Business Entity Types

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The shape of your business affects your future and when I’m talking about the “shape,” I of course am referring to your San Francisco Bay Area business entity type. Did you know that you CAN change that after the fact? Depending on which entity you are switching to, the process can be painful … but you are NOT “locked-in” to a particular entity for the entire life of your business. It’s worth being very thoughtful about all of these things, especially as we deal with an inflationary environment that may (or may not) affect you in significant ways. And yes, I saw the passage of the infrastructure bill the other day. Once the thing is signed into law by the President, I’ll dig into it a little more and give you my thoughts. And before I dive into entity topics, you are invited to grab a time to talk about your San Francisco Bay Area business before year-end to ensure that we are capturing every available tax-savings strategy for you. Find us here: (408) 241-4100 Ok, let’s talk business entity types. Nerds of the world, rejoice. (TL; DR? — We can help you make sure you have the RIGHT entity for tax considerations and for your future plans.) ONeill & Bergado’s Rundown of the 5 Basic Business Entity Types“Definiteness of purpose is the starting point of all achievement.” – W. Clement Stone The classification and type of business you have is an “entity.” Different business entities get different tax treatments (nothing’s ever simple, right?). For instance, in many circumstances, people in some partnerships, LLCs and S corporations (keep reading) can take a 20% tax deduction on their “qualified business income” (QBI). As always in taxes and business, conditions apply – and Congress is considering tweaking this break, so stay tuned. It’s one example of how the right business structure can change your tax life. Here are some of the most common entities and their good and bad points along with some very basic tax info: Business Entity Type #1 – Sole proprietorship: This is the simplest biz structure. It’s just you. You get all the profits, take all the chances, and take all the hits. You pay your regular income tax on the profits, but you also have to pay self-employment taxes. Paying these every quarter is a really good idea, no matter what business entity you have, to stay on the taxman’s good side. Business Entity Type #2 – Partnership: This is a bit more formal than just a few sole proprietorships glued together to share expenses, especially when you’re talking about taxes. You have to get an employer identification number from the IRS and register for all state taxes (think “sales tax”). You file a federal Form 1065 “information return” to report the income, deductions, gains, losses, and so on. You also have to think about excise taxes and employment taxes; these tend to pop up no matter the business entity you use. You pay income tax as an individual since the money you make (or lose) “passes through” to the partners. That’s you. Your business doesn’t get taxed separately. Business Entity Type #3 – LLC: A “limited liability company” is easier to start and run than a corporation but provides owners and their personal assets (your bank account, car, home) “limited liability” for problems the company might get into. Profits or losses pass through to your personal tax return using a federal Schedule C. Aside from you possibly being able to use that QBI deduction we mentioned, LLCs can be taxed as sole proprietorships or partnerships – but you can choose to be taxed like a corporation with the plus of paying taxes on the business profits at the (lower for now, anyway) corporate tax rate. Corporate culture Two of the most common corp structures are S and C. They resemble each other, but there are big tax differences. Business Entity Type #4 – C corp: Among other goodies, tax-free and tax-deductible benefits are available to employees in a C corporation (but as always, check with us on this), and owners can sometimes even get out of capital gains taxes when they sell a certain stock of the company. But C corps suffer two levels of tax: On the income earned by the business and on the earnings distributed to shareholders as dividends. The individual shareholders must report this income on their individual tax returns. Dividends also get a really nice tax rate compared with income (but still, ouch). Don’t be in a hurry to go to C: A recent study found that some startup C corps would have actually saved themselves money if they’d formed as LLCs. Business Entity Type #5 – S Corp: These puppies pay only one level of taxation and a lot of C corps switch to S corp status. Tax bills can be like that… S corps pass corporate income, losses, deductions, and credits through to shareholders who report the “flow-through” of income and losses on their personal tax returns – so S corps avoid that double taxation. They also get a real tax spark by only having to pay FICA taxes on salary compensation to owners and not on the remaining profits that magically transform into “distributions.” Before you get visions of fattening your distributions, paying yourself a goose egg in salary, and dodging FICA altogether, the good folks at the IRS say that S corp owner-employees must be paid “reasonable compensation” for their services to the business. Finally, there are a lot of conditions to qualify for S corp status and some states also have special rules for S corps. You should never let the tax tail wag the dog of your San Francisco Bay Area business, and there’s a lot more to know about biz entities and their plusses and minuses. If you want to learn more, make some time to chat.(408) 241-4100   To your business being in optimum “shape” … Patti ONeill and Gale Bergado(408) 241-4100ONeill & Bergado

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