News & Reviews Health Insurance Hoopla

High cost of health insurance got your small-business budget in a bunch? AgriPlan/BizPlan, a tax reduction service based in Adel, Iowa, estimates that in 1995, 40,000 self-employed business owners each saved an additional $1,800 in taxes through a provision in the Internal Revenue tax code.

The deduction, under IRS Tax Code Section 105, applies to married, self-employed taxpayers who formally hire their spouses as employees. If your spouse receives a salary for services performed for your business--even if he or she holds another job elsewhere--you can deduct 100 percent of your family's health-insurance premiums and non-insured medical expenses.

But be forewarned: the deduction is recommended for businesses with three or fewer employees, because the law requires employers to include all employees in the plan. For businesses with more than three employees, the cost of including them all may outweigh the savings benefits of the deduction.

"This plan works best for companies with one to three employees," says president Phillip Harrington, "because even if you are covering their expenses, it will still be to your benefit. If you have 20 employees, you could still use the Section 105 deduction, but quite frankly, you're better off getting a cafeteria plan like most larger companies do. The Section 105 deduction is truly meant for the mom and pop operation."

AgriPlan/BizPlan will act as a third party administrator--setting up a Section 105 deduction plan to comply with IRS, Department of Labor and Employee Retirement Income Security Act (ERISA) regulations--for $175 per year. "We don't prepare taxes, we don't sell insurance programs--all we do is administer Section 105 deductions," says Harrington. "And because we're national, we can do it inexpensively."

All plans are backed with an audit guarantee. If you think your small business might qualify for this little-known deduction, talk to your accountant. You can also contact AgriPlan/BizPlan directly at (800) 298-2923, or write to P.O. Box 267, Adel, IA 50003.

A Daily Dose

Even during your busiest days, you'll still be able to find a glimmer of guidance from a voice of experience in A Goal is a Dream with a Deadline: Extraordinary Wisdom for Entrepreneurs, Managers, and Other Smart People (McGraw-Hill, $12.95, 800-338-3987), by Leo Helzel & Friends.

Helzel, who has taught entrepreneurship courses for more than 25 years at the University of California at Berkeley, and more than 80 of his friends and business associaties, provide 401 entrepreneurial adages and enlightening witticisms for quick reading and easy digestion. Here's a sampling of the pithy prose:

"An idea without at least some element of absurdity is probably not worth further consideration," "A genius is often a crackpot who hits the jackpot," and finally, "Entrepreneurs are the backbone of the future economy. They are often treated as the tailbone, particularly in the start-up phase. It's the price of entry."

Hot Product Contest

If you've been waiting for your product to hit it big, besure to enter the National Mail Order Association's "US500" contest. If it's one of the 500 products chosen, itmay be seen by mail order, catalog and infomercial companies, aswell as other direct marketers. "The products we select willbe exposed to hundreds of merchandise buyers from around the world,adding export possibilities as a bonus," says John Schulte,chief manager of the NMOA.

All 500 selected products will enjoy free publicity in"Mail Order Digest," the association's newsletter.The best product from each state will also be featured on the NMOAWeb site (http://www.nmoa.org)for an entire year.

Completed entries must be submitted no later than December 31,1996. To receive an entry form, call the NMOA at (612) 788-1673, orwrite to 2807 Polk St. NE, Minneapolis, MN 55418-2954.

O&A

Q:We've recently opened a full-service nailsalon, emphasizing pretty hands and feet. Our plan is to enter themarket with strategically placed boutique-like salons. Can youdirect us to market research in this area?

Ellen Brown

Grand Rapids, Michigan

A:Provided by Cyndy Drummey, publisher ofNAILSMagazine.

If at first you do succeed, try and try again. However, openinga second salon is not as simple as copying what works in one placeto a new location. There is much to be learned from the mistakesand successes you had in your first salon. If you intend to open aseries of boutique-type salons, you should try to standardize asmuch of your business management as you can so that all your storesoperate similarly. This will make all your choices--from leasearrangements to staffing to decor--much simpler.

Studying the demographics of your expansion areas is critical.You will need to understand traffic patterns and average familyincomes in the area. Do you have enough clients from your existingclient base to get a new location started? Will you be able tosupport your current mix of services in the new area? Will some ofyour present staff be able to assist at the new location or willyou need to hire and train new staff members?

Also, do you have a strong relationship with your productdistributor? Your distributor can be a tremendous resource, notjust for product buying, but for understanding salon patterns inother areas, learning about special discounts on equipment orcustom design, and introducing you to other salon owners. Adistributor knows that as your business expands, your business withher will also expand--she will usually do what she can to help yoube successful.

There are several industry resources that can help with thespecifics. The Nails Industry Association is a professionalassociation for nail technicians and owners. They offer liabilityinsurance, a subscription to NailsMagazine, tradeshow discounts, and a continuing education program (which addressessalon-owner issues), among other benefits. For information, call(800) 84-NAILS.

The Salon Association is a trade association for salon owners.They have stricter membership requirements (based on salon size),but offer a wealth of resources for owners, including books, healthinsurance, advanced education and networking opportunities. Call(800) 211-4TSA.

There are salon consultants who specialize in the needs ofowners. NAILS has worked with several of them on a varietyof projects. A couple of recommendations: Marketing Solutions,(703) 968-0400; Salon Development Corp., (800) 334-7198; and SalonDynamics Inc., (303) 691-0285.

Subscriptions to NAILSMagazine are available for$38, and can be ordered by calling (310) 376-8788.

Q:I want to begin researching a bar/restaurant, but Idon't know where to begin. Do you have any suggestions?

Brian J. Sweeney

New York, New York

A: As a matter of fact, we've written the book onit--or at least our Business Products division has. BusinessStart-Up Guides #1186: Bar/Tavern and #1279: Starting ARestaurant will walk you through the steps to opening andoperating a bar or restaurant, obtaining health department permits,and keeping track of inventory. The resource appendixes contain awealth of information sources, including trade associations,publications and suppliers. For more information about our businessguides, see page 97.

You can also check out Gale's Small BusinessSourcebook in the reference section of your local library. Ithas separate entries for Bar/Cocktail Lounge and Restaurant, andlists pages of information sources like associations and otherorganizations, educational programs and suppliers.

The National Restaurant Association, for example, publishes AGuide to Preparing a Restaurant Business Plan for $40 ($20 tomembers), as well as Restaurants USA, a monthly magazinecovering the restaurant industry. To order either of thesepublications or for information about membership, call (800)424-5156 or write to 1200 17th St. NW, Washington, DC20036-3097.

Nation's Restaurant News is a weekly magazine whichcaters to the food service industry. Subscriptions are availablefor $34.50. To order, call (800) 447-7133.

Notice

Our July 1996 story, "The Ten Hottest HomebasedBusinesses," listed information about Pacific Medical'smedical billing training packages. Please note that prices forthese packages range from $1,995 to $5,995. For more information,call Pacific Medical at (800) 815-6334.

Address your small-business questions to: Q&A, BusinessStart-Ups, 2445 McCabe Way, Irvine, CA 92614, or e-mail them to76711.1724@compuserve.com orBSUMag@AOL.COM. Due to limitedspace, time and resources, we can answer only those Q&A letterschosen for publication. Questions may be edited for clarity.

Hot To Buy Hot To Sell

By Deborah Richman

New products for small and homebased businesses.

Total Recall

It's not always convenient to stop and write yourself amemo. Total Recall lets you make notes to yourself--anytime,anywhere. Total Recall is a 3.1 ounce voice recorder with up to 23minutes of recording time. A unique editing function lets youinsert and delete recorded material and organize your thoughts intocategories without recording over other data.

The device will also remind you of the most important memos; youcan set the alarm to play a specific memo at a predetermined dayand time, up to one year in advance.

As you record each message, it's automatically dated andtime-stamped. The LCD display window allows you to pull up files bydate and time. The Total Recall also features a clock, a wake-upalarm, and an earphone jack for private listening. The device runson two AAA batteries and a lithium battery.

Prices from $99.95 to $199.95. From Sycom Technology, BalaCynwyd, PA. To order, call (800) 773-2503.

Trademark Quest

Perfect for the entrepreneur: Trademark Quest is a CD-ROMprogram that lets you screen a potential new name for your businessor product, protect your registered trademark from infringement,and monitor a competitor's trademark. The program also helps togenerate new ideas for brand and corporate names, and print anorder to obtain copies of trademarks from the U.S. Patent andTrademark Office. With Trademark Quest, you can learn how to fileand protect a trademark or brand, as well as how to trademark anInternet domain name.

The program's database features over 750,000 registeredtrademarks; quarterly updates on floppy disk are available at anadditional charge. The program comes with a 24-page user guide anda free 48-page book on how to trademark an Internet name.

Trademark Quest is $129.95 (plus $5 S&H) from Thynx,Princeton, NJ. To order, call (800) 828-4766.

Classic Timepiece

The ultimate blend of form and function, the Classic ArtWatch isa hot seller this year in stores and catalogs. The faces of theClassic ArtWatches feature miniaturized replications of famousworks of art by the world's master painters, such as Dali,Monet, Van Gogh and Picasso.

There are 60 designs to choose from, and all styles areavailable in a three-Micron gold- or silver-plated case, and comewith either a sleek leather, braided leather or genuine lizard-skinstrap (available in various colors). Each watch has a Japanesequartz analog movement, a three-year warranty, an art-historyinsert, an ArtWatch string tag, and a collectible tin box.

Wholesale price: $22.00. Suggested retail price: $39.99. TheClassic Artwatch, from ArtWatch International, Dallas, TX. Toorder, call (800) 767-3254.

Super Backpack

Sell this in your sporting goods store, to the local Boy Scouttroop, or even as a sideline to your travel or tour agency. TheSuper Backpack converts into a seat when you unfold the attachedmetal X-frame seat from the backpack.

The green, red or black nylon backpack is water-resistant andeasily detaches from the metal frame. The backpack features twoside pockets, as well as a front pocket. The product is also verylight, weighing only three pounds.

Custom logos may be printed on the Super Backpack if orderedthrough the wholesaler. Wholesale price: $12.99 per unit (plusS&H). Suggested retail price: $24.95. Minimum order: 36units.

The Super Backpack, from Omnichem International Inc., Denver,CO. To order, call (800) 238-8832.