Choosing the Right Business Entity and Other Tips This Week
A roundup of the best tips of the week from Entrepreneur.com.
Most entrepreneurs have some idea of how important it is to choose the right legal entity for their business, but they may be unaware of the implications for their personal finances. Let's say you want to start a company, but you know it won't make any money in its first year. Many states, including California, would force you to pay a minimum tax out of your personal finances to cover your business obligation that year.
If you organize your business as a sole proprietorship, on the other hand, you won't have to pay a minimum tax, but you can be held personally liable for business debts. This is just one possible scenario. Look into your state's laws regarding business entities and, if necessary, speak with an accountant before locking yourself into a structure that isn't ideal. More: 6 Things About Money You May Not Think About -- But Should
Tap into your emotions.
Don't let yourself get trapped behind "the veil of the professional role" which demands a buttoned-up reserve, says performance coach Achim Nowak. When you need to inspire your employees or clients, act as you do around your friends and family. In other words, act like a human being and let your emotions show. More: How to Be a More Charismatic Leader
Tone your body to hone your brain.
If you struggle to find time for exercise outside of work, find ways to get your blood pumping during office hours: Get a treadmill desk or begin riding a bike to appointments, for example. "The most important thing for maintaining brain function is physical condition," neuroscientist Richard Restak says. More: Easy Shortcuts to Make You Smarter
Make your financial goals specific and measurable.
Vague goals to increase revenue and cut costs will get you nowhere. Financial planner Rick Rodgers recommends choosing what you think are the three most important statistics for your company, setting specific, achievable goals for them and then tracking your progress throughout the year. More: How to Change the Financial Future of Your Business
Build employee loyalty to reduce business costs.
Perhaps the best cost-saving measure you could implement is to inspire more loyalty in your employees. Giving them flexibility and individual attention will help them to feel fulfilled, and in return they will work harder and waste less, says Diane Bergeron, an assistant professor of management at Case Western in Cleveland. Loyalty helps with talent retention too: "As in any relationship, if you get what you need, you're more likely to stay." More: Methods for Building Employee Loyalty