San Francisco Entrepreneurs

How San Francisco Bay Area business owners can beat occupational stress

ranjan.254 / June 19, 2025

As a San Francisco Bay Area business owner, you carry the weight of your company on your shoulders. But the reward is this: when things go well – your profits are good, you’re meeting your business goals, you’re dreaming for the future, entrepreneurial FREEDOM is in the air – you have a joyful load to carry. But then there are challenges… I don’t probably need to remind you: supply chain shortages, economic recession (cuts to be made?) hiring and firing, changing suppliers, shifting inventory systems, MEETING PAYROLL — all of it can feel like a weight that can be crushing. You’re not alone, by the way. So let’s together name the fact that it’s hard to keep the ebbs and flows of business from ruling your mental and emotional state. But, if there’s anything I could press you to do (and do it today), it would be this: Find your path towards what I’ve heard called “benevolent detachment”. “Benevolent” because you are pursuing this so that business and life goes WELL (rather than neglectfully falling apart), and “detachment” because these ups-and-downs within the business should never dictate your identity, the state of your soul, or your family life. All of this is not only essential for your health, but I would posit that it’s essential for the health of your business as well. If you’re bogged down by the weight of it all, and not finding relief or support for navigating it, then your business will suffer because you are the heart (and the head) of it. Now, one step you might take toward easing the toll of it all would be sitting down with my team and me here at ONeill & Bergado, so we can take a look at where things are and help you get things to where you want them. We can dial into 4th quarter things, as well as the coming year. If that appeals, let’s get something setup so we can help ease these burdens: (408) 775-7790 And, here’s another way we can do that, via today’s topic … How San Francisco Bay Area Business Owners can Beat Occupational Stress“There cannot be a crisis next week. My schedule is already full.” – Henry Kissinger It’s all on you as the owner of a small business: the profits, losses, payroll, hiring, inventory, and keeping the lights on. Running your business may be your dream – but ceaselessly being chief cook and bottle-washer is enough to drive you crazy. Are you putting in more hours at work than anywhere else (including with family and friends) combined? Trouble sleeping? Can’t concentrate? Those can be signs your mental health needs shoring up and your occupational stress level could be part of the issue. Credit and concern First, give yourself credit for all you do. In the grind of daily business, it’s easy to forget that you probably routinely put in long hours (and longer after hours) and feel alone when you worry about where the money is going to keep coming from. Don’t kid yourself about running your own business: “Independence” can often mean “alone.” The numbers don’t stop, either – cash flow, finances, invoices… You have to keep up with admin and latest regulations. And you worry about your workers and their families. At least you’re not alone in feeling occupational stress. Four in five small-business owners recently reported having common symptoms of poor mental health at least a few times a year, including inability to focus (the most common), anxiety, bad sleep, panic attacks, and symptoms of depression. The huge business challenges of the last few endless years just made those all worse. Other warning signs unique to business can include feeling more tired earlier in the workday, getting unusually mad or frustrated with workday tasks or coworkers, and finding it harder to make decisions that were once simple. (You can also use this checklist of symptoms.) That same survey showed that almost half of small-biz owners have never accessed support and almost a third said they didn’t know where to go for help or didn’t know support was out there. We never say this – but stop reading right here if you think you’ve got a problem and call the Mental Health Hotline at (866) 903-3787. Any local mental health group or professional can hook you up with help, too. DO NOT BE AFRAID TO ASK. How to fight back When whittling your to-do list has ceased to satisfy you at the end of the workday, or if business just doesn’t seem to improve no matter what you do, turn for a bit to immediate tasks that need to be done and that you can knock down quickly (administrative stuff maybe, or other paperwork). Maybe learn a new business skill that can boost your business down the road. The new focus may bring new fulfillment. Away from the job, it’s a matter of making the time: Just as it took discipline and work to build your company, it’s going to take the same things to relieve your stress from that business. It’s not just you Though it may sometimes feel like you’re alone in your company, you’re not. You have workers – and they might feel stress, too. Seeing you deal with your problems may encourage them to tackle theirs. That can only be good for your company in the long run. Encourage regular hours and time off. Teach your managers how to spot problems in staff early. Openly discussing anxiety, depression, and other problems encourages constructive ways to fight it. It’s one more tool to keep your company on track in these tough times. That’s what we’re always here for. As a local San Francisco Bay Area business owner myself, I can relate to the burden you carry. Which is why I wanted to speak into this topic today. Thriving in business isn’t just about good numbers and client influx. It’s also about finding regular joy in what you do. And we hope this helps get you on that path. On your team, Patti ONeill and

Business Growth

How San Francisco Bay Area Owners Can Have a Productive Business Meeting

ranjan.254 / June 19, 2025

Ever finished a meeting and thought That could have been an email? Yeah, I get that. Work meetings are one of those necessary evils that too often end up being time wasters rather than savers. But you can’t simply wave a magic wand and eliminate them (though, in certain cases, it might be the dash of cold water you and your San Francisco Bay Area business need). Some are important as a means of company-wide communication, updates on various projects, strategy sessions, vision casting, connection, etc. So, how do you have a productive meeting AND limit them at the same time? That’s the question I want to take up today. Now, as a reminder, we’re in the 4th quarter and will soon be staring down the barrel of a new year and the inevitable tax compliance (i.e. tax return preparation) season. But you still have time to make moves to get your San Francisco Bay Area business better situated (i.e. tax planning) before the bell. Let’s get something on the books to discuss what that might look like for your San Francisco Bay Area business:Patti (408) 775-7790 Gale 408-775-7800 But we can also keep the meeting short. Because, well … How San Francisco Bay Area Owners Can Have a Productive Business Meeting“People who enjoy meetings should not be in charge of anything.” – Thomas Sowell The voices slowly morph into sounding a lot like Charlie Brown’s teacher, your head starts to droop, and your mind begins to liquify into thoughts that have nothing to do with this meeting. Yes, yet another meeting. We’ve become so accustomed to tedious business meetings that we’ve lost all sense that they could, with planning, be – though it does stagger the mind – productive and useful. How? Let’s all take a seat, and we’ll get started. Whose time is it, anyway? Meetings, born in corporate culture, have mushroomed. Almost half of business employees have “several” meetings a week (more than one in five people have at least a meeting every day). The average length is 45 minutes. More than a third of business meetings don’t use an agenda. The result: Seven out of 10 employees feel their time is being flat out squandered. Nearly two out of every five respondents admitted falling asleep during meetings. (Video meetings, booming during the past few years, tend to garner more favorable reviews. Almost nine out of 10 respondents said video conferences sped up work and sharpened attendees’ focus.) Executives say that almost half of meetings serve no purpose – and that two-thirds are just plain failures. When, why, and how big should your business meeting be? You can’t replace meetings totally, nor should you. Often, you have to get coworkers in the same room (or on the same Zoom screen) to swap ideas. But could something have replaced that meeting? A phone call? A fact sheet? In other words, is the meeting going to help move work forward – or replace work, only giving everyone a sense that something’s getting done? Experts say meetings should constitute at most a fifth of your work life; too many meetings can simply shatter concentration. And meetings should never be the first go-to for exchanging ideas. If your business has too many meetings, look at who’s calling them. Limit the number of workers who can call a meeting before you create a bunch of time bullies. Monday is the least popular day to have a meeting. Tuesday and Wednesday are preferred. A big question: How many people should be at a business meeting? (Your answer might be, “One…”) Size depends on what you have to cover, but as a rule you should think about the minimum needed before you message everyone to schedule a time. Who really needs to hear the points? Who gets invited to all meetings just out of habit? Who’s going to only bog things down? Amazon guru and occasional astronaut Jeff Bezos has his own rule: You should have no more people in your meeting than you can feed with two pizzas. Stick to the plan Following an agenda can keep everyone on track and cut meeting time significantly. Your agenda needs five basics: the main themes (what are you trying to accomplish here?), talking points, support documents, decisions to be reached, and action items. Get the supporting docs to attendees beforehand so they have time to digest the info and better prepare their input at the meeting. Generally, schedule a meeting at least two or three days out. To increase participation in the meeting: If nobody has any questions toward the close of your meeting, has it been a success? Sure, maybe you covered everything completely and there were absolutely no more dots to connect. More likely, they just couldn’t wait to get out of there … Are there any questions? There should be, for both the attendees and for the person who ran the show. For attendees: How did this meeting compare to the last one? Did we hit the goals in the agenda? Did the meeting give you what you need to solve problems that were present before the meeting? For the presenter: Who was distracted? Who did most of the talking? Did the talk shift to irrelevant topics? A small anonymous survey after the meeting might help, too. What worked well? Was there something missing? Have participants summarize the meeting in one word or sentence. This gives you an idea what they’re thinking and if this meeting was worth the time. There’s no avoiding meetings completely in business – but with a little work you can make them a little more necessary and a little less evil. Now, naturally, this is just a baseline to get you started. You have to figure out what works best for your San Francisco Bay Area business. I am confident you’ll find the way. And, I’m here to support you as you do. Happy to help, Patti ONeill and Gale Bergado(408) 241-4100ONeill & Bergado

Business Growth

San Francisco Bay Area Businesses choosing to live out of a place of gratitude

ranjan.254 / June 19, 2025

This week is an opportunity. To comfort ourselves away from the noise of our clamoring-for-attention society with good food and (mostly?) good company … for sure. But also, to pause. There’s not many opportunities for that as a San Francisco Bay Area business owner (without falling behind on the 983 conversations you’re part of on a daily basis). Between the inflation crisis, rumors of supply chain woes, the upcoming holiday season, the stress that Q4 often brings with it… let’s just say, owning a business involves a lot of moving parts and a wide range of emotions connected to this time of year. But it’s expected that you should pause this week, so let’s not miss it. In fact, maybe we can actually savor this momentary respite from the craziness by remembering to be thankful for REAL things in our lives — things (or people) that we can actually name… not just some abstract idea of “being thankful” that doesn’t hold any meaning in our daily lives. No matter what you or your family (or your business) may be facing this year, no matter if the news portrays the world as spinning out of control… we can control our mindsets and choose to live out of a place of gratitude. It sounds cliche, but it really does wonders for our hearts and minds. So as we prepare to rest this week over here at ONeill & Bergado, I’ve been thinking about those concrete, real things in my life that I have gratitude for. First among them are the amazing clients I get to work with. Somewhere along the journey, you chose to trust us with your business. That is no small choice, and we don’t take it lightly. Owning a business comes with so many risks — I still remember the exhilarating-but-nerve-wracking experience of going out “on my own.” I’m grateful for the friends and other business owners who helped me along the way. No one wants to go at it alone — especially when dealing with the murky waters of the IRS and the economy. That’s why I’m here. In the midst of the crazy, I get to be (I hope) a steady, reliable source for you. And that’s why I’m proud of what we’ve been able to create around here at ONeill & Bergado. I was once the ambitious business owner hoping to pursue my dream. Now, I get to be the one helping people like you pursue YOUR dreams. So before I gather with friends and family this week, I wanted to take a moment — as a business owner… and hopefully, as your friend — to say THANK YOU for trusting us with your business and the honor of serving you year after year. It’s a joy. What are some of those tangible things (or people) in your life that you find yourself grateful for? Feel free to reach out and let me know your thoughts. Let’s encourage each other this week, as we take some time to slow down and reflect. Warmly, Patti ONeill and Gale Bergado

Business Tax Planning

The New Congress and Your San Francisco Bay Area Business

ranjan.254 / June 19, 2025

This time of year means big things for San Francisco Bay Area businesses like yours… and big-red-bow-on-top opportunities thanks to the post-Thanksgiving, pre-Christmas buying euphoria. Early indicators are that this has been a tepid start to the consumer holiday season, but one consistent thing I’ve observed among my SMB clientele — nothing happens unless you do something to make it happen. One thing that should also be on your radar: Year-end moves that will affect your 2022 tax positions. Whether it’s spending, saving, asset structure, etc … we only have one more month (or so) before the books close. After 12/31/22 … we’re mostly confined to “historical” work on your tax files. Shall we talk about it?Patti (408) 775-7790 Gale 408-775-7800 But leaving all of that aside, I wanted to help sort through the mucky aftermath of post-election results and offer a clearer picture of what lies ahead for your business as we face a new Congress in Capitol Hill. So let’s dive in. The New Congress and Your San Francisco Bay Area Business“I have come to the conclusion that one useless man is called a disgrace, that two are called a law firm, and that three or more become a Congress.” – John Adams, 1776 The midterm elections are finally over. Now you face the challenge of doing business amid a new potential wave of tax changes — on top of such economic trends as inflation, economic change, and leftover pandemic problems like the supply chain. What to pay attention to first? Here are 7 takeaways for you regarding the new congress and their effect on your San Francisco Bay Area business. Coopetition #1 – The lights must stay on. A Republican-controlled House of Representatives and a Democratic-controlled Senate (and of course a Democratic White House, with its veto power) mean that most major tax and economic legislation will likely be logjammed through the coming months, at least until the next national election. Nevertheless, some things will have to be done in the new congress lame-duck session, such as appropriations to keep the government running (never a gimme anymore) and money for such outlays as national defense and disaster funding. Further out, both parties will probably have to set aside big parts of their agendas or somehow learn to work together. Taxes #2 – To repeal or delay? Some business tax breaks and conditions are on the block to be repealed or delayed — and could find their way into year-end extender deals. Among them: computation of Section 163(j) current-year business interest limitation; and phase out of bonus depreciation beginning on January 1. A possible repeal of a tax code change that requires amortization of research and development tax breaks could also pass if Republicans allow Democrats to expand the Child Tax Credit (see below). #3 – IRS funding and more agents. The federal Inflation Reduction Act passed last summer pumps 80 billion dollars to the Internal Revenue Service, which will use part of the money to upgrade technology and hire some 87,000 new agents. Republicans in the House have made an early vow to block that money for the IRS pending more organized oversight on spending. #4 – R&D tit for tat. A new congress split along party lines may get its first taste of wheel-dealing when Republicans push to reverse, forcing companies to amortize their tax break for research and development (R&D) over five years. If Democrats agree, Republicans might bend on expanding and extending the Child Tax Credit for families. Some Congressional leaders have said both should pass. Inflation and the economy #5 – Cementing the TCJA. Republicans have brought legislation to the House to make the tax cuts, lower rates, and larger standard deductions of the Tax Cuts and Jobs Act of 2017 permanent. Republicans have also pledged in their “Commitment to America” to battle inflation (now running about 7.7%) and lower the cost of living in part through what they describe as a “pro-growth tax economy.” The Republicans’ TCJA Permanency Act keeps in place today’s tax rates for individuals and families and preserves the 20% deduction for small businesses. Proponents say that the Act provides tax certainty to facilitate costly investments in items with long productive lives. That in turn, Republicans claim, will help tame inflation by helping supply meet demand. Details remain sketchy right now, though, and President Biden would still have the power of veto with an override vote unlikely from a divided Congress. #6 – The economy at large. Congress (especially a new Congress) can’t directly do much about inflation; the Federal Reserve has the best tools, in the form of interest rates. About the most Congress can do is put more money in the pockets of Americans through tax breaks and stimulus payments. If one party was squarely in control, the path might be clearer. As it is, we are likely to see the push/pull of Democrats advocating stimulus and individual credits and Republicans pushing for tax cuts for business. Capitol Hill does continue to try to attack supply chain problems, most recently with the Ocean Shipping Reform Act of 2022. The new law has had questionable effectiveness so far, but at least it was bipartisan — so there’s hope Congress will do more for the supply chain. Across the great divide #7 – One bipartisan bright spot for the lame-duck session. The EARN Act, related to SECURE 2.0 and one of the flurry of bipartisan legislation aimed at retirement savings, would make several changes to employer-matching contributions to various retirement plans. You’d be able to match employee contributions on a Roth on an after-tax basis, for instance, or contribute more for SIMPLE IRAs and SIMPLE 401(k) plans, among other changes. It would also make it easier for part-time workers to participate in retirement plans. (Other changes would be an expanded saver’s credit for low and middle-income workers, easier withdrawal penalties, and a higher age for taking required minimum distributions). EARN (or something like it) stands an excellent chance of passing even this Congress. Nothing ever stays the same for your business or

Business Growth

Succession Planning Strategy For San Francisco Bay Area Business Owners

ranjan.254 / June 19, 2025

The 2022 clock is almost at midnight. An end to a still somewhat crazy year — “the crazy” seems like our new normal, post-2020, am I right? There were a lot of challenges this year and they were … exhausting. Keeping up with the changes and adjusting to the economic pressures… well, these things can make you start looking for the exit door on this whole business ownership thing (and I’m going to talk succession planning strategy in just a minute). Believe me, I get it. I’m a tax pro who went through the craziest few tax seasons most have ever seen these past few years. I wanted to smash that eject button more than once. But maybe you weren’t phased by it all and ate up the chance to square your shoulders and meet the crazy face-to-face. And now you’re riding that high, dreaming far into the future for your San Francisco Bay Area business. Regardless of where you find yourself on that spectrum, let me say this: You have to make a plan for (one day) leaving your San Francisco Bay Area business behind you – in some form or fashion. Because time comes for us all. If you’re thinking that you want to bring things to a close soon, we should talk about that so we can help you make sure you’ve got all your business ducks in a row — including the tax ones:Patti (408) 775-7790 Gale 408-775-7800 And here’s what life after you leave your company could look like … Succession Planning Strategy For San Francisco Bay Area Business Owners“The victory one would gain after a whole life of work and effort is better than one that is gained sooner.” – Vincent Van Gogh You’re not your business and your business isn’t you … It’s a great theory, but… how true if you’re finally stepping away from the small business that you gave your heart, soul, and a big slice of your life to? It’s all but certain you’ll have to leave someday — owners recently surveyed gave pretty varied targets for departure — but are you ready for what’s next? Here’s how you can be. Succession planning strategy: Plan to not fail A solid plan can bring peace of mind and smooth out a process in business (and life). Time for such a plan now. Business succession prep means finding or grooming people (often from within) to take over your company when you step aside. Succession plans usually come in two flavors: long-term and emergency. You’re looking here to make the former, which will be permanent after you leave the company and will help everyone see how your operation will be doing up to five years from now. How many folks need to be affected by your plan? In a small company, it could be a matter of just replacing you (the owner). In a midsize business, you may need to be replaced on a team or a C-suite. In other words, if you didn’t show up tomorrow, what role in your company would have the greatest impact on the bottom line? What skills are needed for that role? Who among your staffers (who can also lead) has most of those skills now? (To go outside your company, you might reach out to a headhunter or your referral network.) Next, approach your company leaders. Tell them all you can about your succession plan and try to discern if they feel nervous — or accepting and ready. Don’t forget to help that team of ready people cultivate their own backups and successors. Who among the lower-level staff has the right attitude but needs training and experience? That’s the real long-term plan for your company. More than a third of biz owners leave the company to a relative. If your succession candidate is a family member, you can transfer ownership through your estate — but this can bring up a host of levies from Uncle Sam and elsewhere, including income tax, gift tax, and generation-skipping tax. Check with us before planning to pass your company to a family member. Succession planning strategy: Don’t forget about taxes If you’ve sold your company, the IRS usually examines the sale of each asset associated with your business rather than the sale of the whole business itself. For tax purposes, you’ll have to categorize each sold asset as either inventory, real property, depreciable property, or capital assets — each with its own tax treatment. Sale of capital assets results in a capital gain or loss, for example, and sale of inventory results in ordinary income or loss. This gets even more complicated if you retain an ownership stake in the company. You also have to think about ways to protect and preserve the profits you made. Diversifying your investments can help here, holding different asset classes that don’t rise or fall together (tough, we admit, in the recent volatile/bull market) and exchange-traded funds or mutual funds, sometimes with a mix of bonds thrown in. We don’t do investment advice, but generally the above will work to preserve wealth and get you the best possible tax situation. Succession planning strategy: Living the retiree life If you’re more or less stepping out of the work world after you leave your company, it’s finally time to take your place in all those idyllic pictures of retired folks relaxing: travel, gardening, former hobbies long dormant … Some retirees read the book they’ve always wanted to; some write the book they’ve always wanted to. Pursuing your interests and lifelong loves can be fun. Some people manage to fill a whole retirement with it — and some don’t. Many biz owners find themselves thinking they’ll be stepping aside with no clear idea of what to do next. Feel free to resist overstating the role that leisure can fill in life after your company. A lot of folks find semi-retirement works best for them. This can look like consulting in their former industry or gig jobs. (Browse the latter at sites

Business Tax Planning

Hiring a Consultant for Your San Francisco Bay Area Business

ranjan.254 / June 19, 2025

Remembering and honoring Martin Luther King this week has me thinking once again about being a voice. It’s hard not to get inspired listening to the iconic words of the famous I Have a Dream speech (if you’ve never listened to the entire speech, it’s worth the listen — and it’s shorter than most people realize). It makes me think about how being a business owner is about so much more than merely “running a business.” What we do has a real impact on real people. And we can wield that influence in intentional ways. For many of us, we start with our teams. Without even trying, we impact their lives. (Quite literally because we give them a paycheck, but it goes beyond that). This impact can be for good or for ill, by the way. But when we see our teams right, we get the opportunity to know them as people, not just as workers. We get to support them in their pursuits and help them come through difficulties. We get to help them succeed beyond the walls of our San Francisco Bay Area businesses. This kind of care, letting them know how much you value them … well, I’m fairly certain that it goes a long way. One really practical way you serve your staff and contractors is by getting out their W-2s or 1099s on time. You have a couple weeks until they must be issued. Do not wait for the last minute on this one. If you need help, you know where to find us:Patti (408) 775-7790 Gale 408-775-7800 Now, speaking of your staff and maybe your 2023 business goals, perhaps you are needing to hire a consultant for some specialized areas in your San Francisco Bay Area business. I have thoughts. Hiring a Consultant for Your San Francisco Bay Area Business“Advice is like castor oil: easy enough to give but dreadful uneasy to take.” – Josh Billings HR or IT getting complex and time-consuming for you alone? Suddenly what seemed to be an advertising no-brainer looks complicated now? It’s only natural that as your company grows, functions that were once easy get too cumbersome for you to handle. Sooner or later, you wonder about hiring a consultant. Finding the right one to help your company, though, is like finding any other answer in business: It takes work. But you can handle it, and here’s how. What they do and what you need Consultants come in a lot of varieties and can help (or claim they can) in many areas of business from advertising and marketing to how to handle expanding growing human resources needs to advising on real estate purchases to protecting data as a company grows… among many others. You can’t know what you need until you know what you need. Your first task when hiring a consultant is to resist flailing for help in all directions and pin down what problem you want to tackle. You need details and for those, you need homework and questions. Rather than simply saying you want a consultant to help with your advertising, first, find out where you want to put the ads and for what products. You need tech help – but to install software, pick a server, or build a firewall? Do you need your consultant for one project or for semi-regular engagements over the long haul? The more specific, the better. What you can expect to pay For all the above, your big determinants are your budget going in and projected ROI. Until you’ve tacked those down, don’t even Google “hiring a consultant …” Pricing is where consultants really get varied. Understand that this can only be just an overview of their rates, but it should give you a snapshot to start budgeting. Consultants can charge by the project or by a length of time, such as a day or an hour. Small-business consulting fees can range from the high two figures to more than a grand (sometimes much more, depending on the industry, the length of the project, and the consultant). That breaks down to the low three figures per hour. Generally, the more technical or senior-level the expertise needed, the more expensive it’ll be. Makes sense – but how can you rein in costs yet still get the expertise you need? Some screening questions are the same as with any vendor. Is this a one-time consulting need? You’re better off with a fixed fee. Is the project ongoing, with repeated fine-tuning down the road? That’ll get you a lower fee than a one-time project but you will have to pay the fee more often, so can you negotiate a volume discount? For figuring out a base price to start, check your biz network for experience with consultants’ fees – and, more importantly, for referrals. Who they should be Unfortunately, hiring a consultant isn’t like hiring a tax preparer, plumber, doctor, or other professional who works under fixed and clear levels of certification. There are many certifications for consultants – but, for your purposes, those titles don’t mean as much as finding someone with smarts concerning your company and with whom you just click. Common sense will tell you the qualities of a good consultant: ability to listen, learn, and analyze; calm, objective judgment and the skills to document completely; insight and experience (maybe even on the expert level, though again this can cost you) to think strategically; inductive reasoning; and the ability to clearly communicate findings and recommendations so you can act on them. You might also need them to have a sharp eye for data or possess management or medication skills – sales ability doesn’t hurt either when it comes to convincing your staff of the sense of the consultant’s recommendations. When you’re screening candidates, bounce your problem off them directly. You can also give them hypothetical problems and ask for their judgment in ways to respond (much like you’d do with a job candidate). Ideally, you’re not the only one asking questions in the screening. A candidate should: Again, this

Business Growth

The Why & How of Business Referrals for San Francisco Bay Area Owners

ranjan.254 / June 19, 2025

Firstly, before I jump into what business referrals could mean for your San Francisco Bay Area business, I wanted you to see this. You may have already heard me talk about this … but the explosion of shady flim-flammers gaming the Employee Retention Credit and making questionable claims on behalf of business owners is raising all kinds of red flags at the IRS. As it should. Here is the headline of the IRS’s most recent “Dirty Dozen” release: IRS opens 2023 Dirty Dozen with warning about Employee Retention Credit claims; increased scrutiny follows aggressive promoters making offers too good to be true. Indeed. And I will have more to say about this in the future. But if you’ve been potentially victimized by one of these overly-aggressive promoters, let’s talk:(408) 775-7790 One of the strategies employed by these slim shadies is offering extravagant referral fees. And I’m not opposed to a nice referral bonus. But when they made it so large (sometimes into the five figures), it became a recipe to attract the sharks. However, when you do things right — working ethically, professionally, and well behind the scenes with vendors, clients, and other businesses — it means good things for your San Francisco Bay Area small business. After all, you’re small fish in an economic tank with much bigger fish (and those sharks). Survival chances are greater when you swim with others. That will be the subject of today’s Note. But before I dive more into that, I do want to make one more brief diversion to revisit the global banking situation… and the vulnerability of the banking world right now. It’s easy to let panic set in. The reality that your San Francisco Bay Area business could take a big hit because the bank fails in which your money is invested, means you might be tempted to scramble to pre-emptively right the ship. Yes, things could get rough ahead, and the recession that’s been threatening for the last year is almost a certainty. And if you’re looking for a business loan, banks are going to be much more stringent about giving those out. They want to make sure you’ll make good on their investment. As far as the possibility of your business being threatened by a bank failure, if you’ve got under $250,000 in FDIC insured US bank account, then you can take a breath (also, joint accounts are covered up to $500,000). More than that, we should take a look at what that means for your business. It might be time to “kick the tires” of your bank to ensure reliability. It might even mean making a switch. And we can talk about what that looks like. Just grab a time with us.(408) 775-7790 Most of all, don’t get caught up in hysteria. Alright. So, today I want to talk about a way that you can build your business and create some strength in your financial framework through a bit of an indirect method. (A little something called business referrals.) What does building a referral system mean for you? The Why & How of Business Referrals for San Francisco Bay Area Owners”You can make more friends in two months by becoming interested in other people than you can in two years by trying to get other people interested in you.” – Dale Carnegie Everybody knows aboutcustomer and employee referral programs, which usually offer a quick, monetized reward for sending business your way. They’re great when they work well. (Most word-of-mouth programs are as long as your company has a good reputation.) As small business owners, we all know referrals are GOLD. Most customers who have a good experience with a company will recommend that company. Leads from those referrals tend to be worth more in both the short and long term, and most people trust referrals from people they know personally. It’s like having salespeople you don’t have to pay. Then there are other businesses (non-competitors of yours) who may be willing to recommend your company to their own customers. You, of course, must be willing to recommend your customers to them. You may well already have an ad hoc, informal version of this arrangement. Nowadays, this is called a “referral team.” You can formalize this process for an even better payoff. Here’s how to start on the business referrals track. Building a business referrals team: Who to approach? Ideally, you’re looking to put together a team of about six or so associates who have companies that complement — but do not compete directly — with what your company does. Your prospective team members are determined by your company’s goals, your market and industry, your (presumably good) opinion of your prospective fellow team members, and your idea of who’d be most willing to spread the word about you. Regarding competition, there is wiggle room in your choices: In our line of work, for instance, one accounting firm that does only tax preparation might make an excellent referral teammate for an accounting firm that does only business advising. Maybe an accounting firm that handles tax and accounting could find good prospective teammates in lawyers, insurance agents, IT providers, and so on. The point is to create a steady, two-way flow of new customers. An effective referral team is also usually a small one. That’s the best way to hold every member (including you) accountable for sending referrals to each other. A little common sense here: Make sure your company is ready to participate in this network and handle the new business. If there are any problems handling the business coming through your door already or any customer service issues you’ve been meaning to clean up, now’s the time! You do not want team members referring customers to you and then having those new relationships consistently go south — there’s no quicker way to see your referral team unravel. Building a business referrals team: Formalities As we said, you probably have informal referral arrangements with some businesses already. A proper business referrals team (sometimes called a cross-referral network)

Business Growth

When Your San Francisco Bay Area Business Might Need a Valuation

ranjan.254 / June 19, 2025

We’re nearing June 30 (the mid-year marker), which is a very smart time to move into a different gear in examining your business’s financial situation. Because, like the good business owner that you are, I’m sure you kicked off Q1 with a bunch of exciting goals and objectives for 2023. So, now that we’re nearing the end of H1, it’s a good idea to check in on those goals. Consider how you’re feeling about your business right now. Are you making progress toward the growth you initially envisioned? Or are you growing in ways you didn’t anticipate? And don’t forget about all those valuable business and client relationships. Measure those too. Take some time to reflect. If your business isn’t quite on the path you intended in Q1, it’s not a crisis. Adjust. And I’m here to help you do that: (408) 775-7790 Doing regular checkups on your San Francisco Bay Area business means you can find a firmer footing as you move ahead. It’s one of the reasons I am continuing to address business valuation and why you should consider it. Today, let’s dive more into when said valuation would be really helpful to have… When Your San Francisco Bay Area Business Might Need a Valuation“People know the price of everything and the value of nothing.” – Oscar Wilde Your business will have many milestones when you’ll have to know how much it’s worth. What are some? Last time, we looked at how a business valuation examines your company’s assets and liabilities, earnings potential, management, and assets’ value. When done right, valuations are expensive for even such non-litigious purposes as a sale, a merger/acquisition, or an owner’s exit. You might still need a valuation of your business in situations you haven’t thought of. You want one ready when the time comes. Let’s look at the why and the when. Sale price We business owners know that buyers and sellers entertain wildly different ideas about how much something is worth. The first and obvious occasion where you’ll need a valuation is if you’re planning to sell your company, especially if your company is worth more than similar companies in the same market. You’ll need an accurate starting point for negotiation which allows you to sift prospective buyers faster. This can also be important when you’re planning to exit your company – whether you’re thinking of selling soon or several years from now, it’ll help you to have a solid idea of what your business is worth. Looking ahead, if you’re like most business owners, your business constitutes a lot of your personal net worth. Knowing your equity in your company as far ahead as possible makes the planning of taxes and retirement (if you are retiring) easier. Two points: Financing Getting a loan from a bank or capital from investors is another time a valuation comes in handy. Beyond lending you credibility, a documented and objective measure of your company’s worth, strengths, and future will usually speed up the approval process. (By the way, the more substantial the credentials of the appraiser who did your valuation, the more seriously a lender or investor will take your valuation.) If your company looks for a loan through the U.S. Small Business Administration, you can perform your own valuation if you look to finance a quarter-million dollars or less. You do need “an independent business valuation from a qualified source” for greater amounts or “if there is a close relationship between the buyer and seller,” such as deals between family members or business partners. Other reasons Litigation: A document that you want to stand up in court for divorce, a lawsuit, or a partnership dispute must be excruciatingly detailed. Your valuation will be used in discovery, and there may be legal requirements regarding its type and depth. Expect to pay more for this kind of valuation – and make sure to have it done by the most experienced and credentialed valuation expert you can find and afford: That professional’s credentials will have to stand up to a dispute in front of judge and jury. Company initiatives: Nothing helps you know where you’re going better than knowing where you are. A complete valuation helps you plan your company’s sales and operational initiatives for the future. Clearly, biz valuations can help you in many situations. But how can you make sure you’re getting the best one for your money? We’ll help you out with that next time. I’m here to help with whatever your San Francisco Bay Area business needs, whether it’s talking more about setting up a valuation or analyzing your financial data to make sure you’re on track to reach your business goals this year. In your corner, Patti ONeill and Gale Bergado

Business Growth

How San Francisco Bay Area Owners Can Measure Business Value Correctly

ranjan.254 / June 19, 2025

There’s this comparative analogy about what makes something American that people like to use: “as American as apple pie.” But, I kind of think we should update that comparison to “as American as starting a small business.” Not as catchy, I know (or as yummy). But, it’s just the truth. Small business ownership is the epitome of independence. Don’t want to work for someone else? Don’t want to depend on someone else to pay your bills? Don’t want to follow someone else’s rules and regulations? Then start something where you call the shots and own the profit. And that’s what you did. You had a dream, and you made it happen. And your San Francisco Bay Area small business, along with hundreds of thousands of others, are the spirit and backbone of this economy. So, when you’re watching all those fireworks “bursting in air,” know that, in a way, it’s celebrating people like you who have built something valuable. Your business has value in our way of life beyond the dollar signs it produces. There might come a time though, when you want to know just how valuable it is and how many zeroes are actually attached at the end. Say you want to sell your little empire or exit it and hand the reins over to somebody else. That’s when you want to consider getting a business valuation. But when you do, you’ll want to make sure the assessor is taking into consideration all the various aspects that affect business value for you. Even when the assessor is qualified, there are still elements of your business and the market you serve that might get overlooked in the process. Let me explain what I mean here… How San Francisco Bay Area Owners Can Measure Business Value Correctly“When things go wrong, don’t go with them.” – Elvis In our previous two articles, we covered what goes into a business valuation and why and when you might need one — from M&As to divorce. By now, it’s apparent that a valuation can be an important tool for running your company… So it’s especially important to realize what could go wrong with one. Here’s a look at some of the biggest potential trouble spots to determining business value. Devil in the details A business valuation is a waste of your time and money if it uses wrong or incomplete models. Let’s go through these here so you can check them along the way — and never hesitate to question your valuation specialist. You’re the one paying for this, after all. Generally, whether the valuation primarily examines your income/earnings, market standing, or overall assets, it should address your company’s non-operating assets and liabilities, taking into account past litigation, tax problems, interest-bearing debt (especially as rates rise), and owners’ worth as related to the business. Among other possible business value assessment problems are: Who to look for and what to ask Just as it isn’t cheap, proper valuation is no ad-hoc skill. Look for the right qualifications. For valuations for some of its loans, for instance, the U.S. Small Business Administration lists such credentials as Accredited Senior Appraiser, accredited through the American Society of Appraisers; Certified Business Appraiser, accredited through the Institute of Business Appraisers; Accredited in Business Valuation, accredited through the American Institute of Certified Public Accountants; and Certified Valuation Analyst, accredited through the National Association of Certified Valuation Analysts. The questions to ask your valuation profession depend on why you want your business value. If you are: If you want to do a little preliminary work before shelling out for a valuation pro, M&T Bank also has an online tool to use for a rudimentary valuation of your company. As you can see, a valuation of your San Francisco Bay Area company is a big job — and a really critical one. These are just a few examples of what to watch for. Need a valuation for your company? I can give recommendations specific to your situation and help ensure it’s done in the way most beneficial for your business. Just reach out. I’m right here: (408) 775-7790 All the best, Patti ONeill and Gale Bergado

Business Growth

Keeping Expenses Separate in Your San Francisco Bay Area Business

ranjan.254 / June 19, 2025

Did you see the Barbie movie or Oppenheimer this weekend? Or jump in with the 200,000 other Barbenheimers and see both? In case you didn’t, your social media feed likely filled you in on what you missed (or didn’t, depending on your view of these things). What a weekend for the movie industry as a whole that hasn’t seen these kind of opening weekend numbers since 2019’s one-of-many in the Avengers series. Seems like a good sign in the midst of inflation, right? Well, whether or not we’re headed for a recession is still in question. I’m sure you have your opinions on the matter. We’ll see how the Fed’s interest rate hikes (including the final one expected this week) have impacted things economically. Keep an eye on the Q2 earnings for big A-list corporations (like Mcdonald’s and Exxon) set to release this week. Their performance will be a helpful indicator of just how effective inflation-slowing efforts have been and if we’ll see the economic ship right itself. While we keep our attention on that, I also want you to remember to not let it consume you. Sure, inflation and recession may force you to make big changes, but change is often a really good thing for a business. Not only does it force creative thinking and more laterally-minded measures, it also pushes you to evaluate your systems and decide where you can streamline them. One area that you might not have considered is your system for keeping business and personal expenses separate. Because it’s easy as a business owner if you don’t have a (good) system in place, to blur the lines here. Believe me, I’ve seen plenty of people come to me whose books are a mess, which complicates operations unnecessarily. That’s why I’m bringing it up. Now, if you know things are messy and you need help to get them cleaned up, I’m happy to meet with you and do an in-depth dive into it. Just set up a time: (408) 775-7790 But let’s start here with a little about WHY it’s so important for you. Keeping Expenses Separate in Your San Francisco Bay Area Business“In diversity there is beauty and there is strength.” – Maya Angelou When you started your San Francisco Bay Area business, I’m sure you felt that sugar high that comes with it. You have this idea that’s been percolating in your mind for months, maybe even years… and now you finally get to open the doors, make the announcement, close your first sale… It’s such an exciting (and hectic) time that many small-business owners (especially new ones) easily forget one basic fact about having your own company: Keep the money separate. If we’re honest, treating your business’s money as your personal account (or vice-versa) is so easy to do: depositing a client’s fee paid to your business into your personal bank account, dipping into your business account to pay a personal expense, and not keeping the records because you know where the money went, and everything is doing fine. The harm comes in the recordkeeping, though… because you might depend on it later to keep your company’s doors open. Here’s how. A caution against commingling If you’re properly in business, having two pots of money confuses your accounting. And accounting is what you’re going to need first and most obviously to determine your company’s strengths and weaknesses, aka profits and losses down the road. Separating expenses can also be for your own good if you’ve incorporated them. If — heaven forbid — your company goes bankrupt someday, one avenue that creditors will have to your personal money will be if your business and personal finances were intertwined (piercing what’s called your “corporate veil”). If you’re a sole proprietor, do yourself a favor and look into becoming a limited liability company (LLC), which can offer you some protection from the fallout of debt. You’ll also need a proper audit trail to prove the deductions and losses you take (and believe me, you’ll need those in the first few years) on your business tax return. While we’re on taxes, if you’ve got even a small online business, this could be the first year you get an IRS Form 1099. For tax year 2023, if you use a third-party payment platform like Venmo or PayPal or sell on sites like Etsy or eBay and make just $600 for professional services, you and the IRS will get a Form 1099-K in January 2024, and you must report the income. If you use a payment platform for personal payments, you won’t get a 1099-K – but there’s no guarantee that mistakes won’t be made in this initial year of the 1099 blizzards. You’re probably beginning to see how keeping good records and separating funds will be especially helpful. The nitty gritty Bank accounts: From the minute you turn on the lights, get a proper business account that’s completely distinct from your personal accounts. To open a biz account, you’ll need to get a federal tax ID number (EIN) and a state tax ID number, as well as any documents you filed for when you formed your company such as articles of incorporation or a certificate of formation. Business accounts typically give you checking, savings, credit card accounts, and a merchant services account that allow credit and debit card transactions from customers. Other perks should include multiple credit cards for you and your employees (more on that in a sec) and merchant services that keep customers’ personal info secure. You’ll probably get a line-of-credit option for your company larger than what you’d get in a personal account. A business account in the same bank where you keep personal money may get you a break on some fees, but it depends on the bank. It’s the same for introductory offers and sign-up bonuses (which are taxable). Shop around and study the fine print — and don’t forget non-bank sources, like American Express. Credit cards: Getting a business credit card separate from your personal plastic is just as important as having a

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