Customer Loyalty

In this day of internet shopping and new businesses spawning from corporate lay-offs, how can you keep your customers happy and loyal to YOU? Here are some tips to help your customers remain YOUR customers.

*Delivering great service once is not enough. It's the "every time" great service that keeps clients loyal. Customers have a choice as to whom they will do business with. Find out what service you offer that sets you apart from your competitors and consistently provide that service.

* Focus on your customers' needs and then deliver what they want. Ask questions or conduct surveys, then incorporate the results into your product or service. Pay special attention to any negative comments and turn those negative experiences into positive ones.

* Go the extra mile. What can you do to "WOW" your customers? Give an unexpected token gift that is not attached to a promotion. Send a note or email that provides information on a hobby to a client. Send a birthday card or postcard offering a percentage off a future service that is good several months past the person's birthday.

* Never underestimate the power of the words "Thank You". Remember to continuously thank your customers. It can be simply adding words of appreciation on an invoice or sending a note of appreciation which includes a gift card for a successful referral.

Customer loyalty should be a constant focus for your business. If you are ever-present in your client’s minds, you will be their first choice when they are ready for the product or service you offer.

Tax Tips for New Businesses

Are you starting a new business this summer? The IRS has many resources available for new businesses. Here are six tax tips the IRS wants new business owners to know.

*Decide what type of business entity you are going to establish. The type of business entity will determine which tax form you have to file. The most common types of business are the sole proprietorship, partnership, corporation and S corporation.

*The type of business you operate determines what taxes you must pay and how you pay them. The four general types of business taxes are income tax, self-employment tax, employment tax and excise tax.

*Obtain an Employer Identification Number to identify your business entity. Generally, businesses need an EIN. Visit IRS.gov for more information about whether you will need an EIN. You can also apply for an EIN online.

*Good records will help you ensure successful operation of your new business. You may choose any recordkeeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes.

*Every business taxpayer must figure taxable income on an annual accounting period called a tax year. The calendar year and the fiscal year are the most common tax years used.

*Each taxpayer must also use a consistent accounting method, which is a set of rules for determining when to report income and expenses. The most commonly used accounting methods are the cash method and an accrual method. Under the cash method, you generally report income in the tax year you receive it and deduct expenses in the tax year you pay them. Under an accrual method, you generally report income in the tax year you earn it and deduct expenses in the tax year you incur them.

IRS Publication 583, Starting a Business and Keeping Records, provides basic federal tax information for people who are starting a business. Visit the Business section of IRS.gov for additional resources to assist you with starting and operating your new business.

Self-Employment Guide

As workers continue to get laid off and downsized, Bloomberg Businessweek has A Guide to Self-Employment offering information on starting your own business. Eight categories detail the necessary steps to venturing out on your own.

"From Laid-Off to Self-Employed" offers advice for making the transition from employed to self-employed. "Beyond Eureka" has business ideas and how to get your product to market. How the new 'Health Care Tax' impacts small businesses and other Tax Strategies are also covered topics. Finally, there are three slide shows detailing the steps from unemployed to self-employed, part-time business ideas, and self-employed business success stories.

Being self-employed isn't for everyone, but this guide can help you determine if self-employment is an option for your future.

5 Things to Know About Energy Rebates

This month's "green living" focuses on energy rebates and incentives. See the July 2010 issue of Money magazine for more information.

Federal appliance rebates are going fast - The Cash for Appliances program is still available in DE, MD, NJ and PA. To check other states' availability, visit http://www.energysavers.gov/financial/70022.html. Rebates are issued on a first-come, first-served basis.

Most states offer their own programs - If you don't qualify for a federal rebate, check dsireusa.org for any incentives your state is offering for boosting your home's energy efficiency.

Two more chances for federal funds - For 2010 tax returns, you can claim a $1500 federal tax credit for up to 30% of the cost of many energy-related home improvements. If the Cash for Caulkers bill becomes law, homeowners would get large rebates on various energy-saving projects.

Do the math before deciding on a rebate - Some projects will give you greater savings than other projects. Have a comprehensive home energy audit performed to determine how to best maximize your budget and your rebate. Some utility companies will perform a basic audit or reimburse you for some of the cost of an independent audit.

Small projects can still pay big - Not all energy saving improvements require a large cash outlay. Every degree up or down on your thermostat saves approximately 2% on your annual heating and cooling costs. Replacing just five frequently used light bulbs with compact fluorescent bulbs can reduce your energy bill by about $70 each year.

Together, we CAN make a difference!