AARP and the photographers of Magnum Photos look at older people living in new ways around the world in A New Age.

Reply
Business Coach
0
Kudos
61
Views

Re: Want to take your business to the next level? Ask a Business Coach!

61 Views
Message 1 of 32

Hey @PamL728782 :

 

Thanks for your question and for creating new jobs and new industries.   

 

I agree with you in that, no doubt you are part of building a new industry.   The great news about being part of a new industry is being first....which usually means good things ounce you have everything figured out.   It is the old saying about being in on the ground floor.   So well done!!!  

 

The down side of the ground floor and being among the first to build something new, is that you have to clear all of the pot holes and hurdles that future owners will take for granted.   This new industry is certainly intriguing and it is difficult to predict that it will be anything other than HUGE.   As you already know, the major issue right now, is the difference between State laws and Federal laws.   We have only been struggling with States versus Federal for about 250 years and it’s not likely to end any time soon.   So part of my advice to always be aware of both…you still have to meet both and satisfy both as you and your peers endeavor to figure this out. 

 

There are more ways to move and collect money now than at any time in history.  Entreprenueur.com has a great article reviewing the top 15 online payment methods will some significant detail.  Here is direct link to their article that is a great place to start.  

 

https://www.entrepreneur.com/article/286006

 

You can also simply “Google” “Online Payment Systems” to other detail for multiple options.   Setting up multiple payment options for your customers can be a great marketing tool as well as a financial tool.   As you build this model, it would be a good idea to work with a number of these options to leverage your own future regarding which of these will indeed take the  lead in this new industry.  

 

I do not have a crystal ball nor do I pretend to understand the intricacies of this new industry, but I do believe that new laws and new processes will be addressed at both State and Federal levels.  For today, having as many options available will put you in a better position to react to whatever comes down the path from a political standpoint in the next few years. 

 

I hope this helps and let me know if you need more detail or if you would like to discuss further.

 

All the best,

 

Keith

 

@PamL728782 wrote:

We are in a cutting edge business.  We produce Hemp Cigarettes.  Since the passing of the 2018 Farm Bill, Hemp is legal but the credit card companies have been inconsistant about working with us.  Several time they have keep our funds.  Any advice on how we can have an online store and people pay us?

Both Smokes.jpgSmokes, original, menthol and now with Kratom


 

Report Inappropriate Content
0
Kudos
61
Views
Info Seeker
0
Kudos
117
Views

Re: Want to take your business to the next level? Ask a Business Coach!

117 Views
Message 2 of 32

We are in a cutting edge business.  We produce Hemp Cigarettes.  Since the passing of the 2018 Farm Bill, Hemp is legal but the credit card companies have been inconsistant about working with us.  Several time they have keep our funds.  Any advice on how we can have an online store and people pay us?

Both Smokes.jpgSmokes, original, menthol and now with Kratom

Report Inappropriate Content
0
Kudos
117
Views
Business Coach
0
Kudos
126
Views

Re: Want to take your business to the next level? Ask a Business Coach!

126 Views
Message 3 of 32

Hey @MischelleM338817 

 

Thanks for your post and I am so sorry to hear about your struggles.  I wish I had an easy answer on how to turn things around for you guys.

 

I believe the first key point here is to try and figure out the reason or reasons for the change in your business.   Sit down with your husband and go through all of the details.  Try and find a place away from the norm...get away from your daily routine even is just taking a picnic to a park....but get away from everything else and just focus on the changes that have occurred over the last few years. 

 

You mentioned that part of the issue could have been personal (an illness) but most likely there are other circumstances as well.   Do your best to identify the critical things that have changed.   You mentioned that you don't understand the slumps, but we have to sit down and figure those out.  Once you have done that, then we can evaluate whether or not those factors are permanent or if they can be fixed.

 

If the issues you guys can identify are fixable, then we can build a plan to reinstate the model that is based on rebuilding the business that you have been so proud of.  If those factors are not fixable such as personal issues that are not likely to get better or market conditions that have fundamentally changed your industry, then we may have some more difficult choices.   

 

I hate adding tired old adages to these conversations, but it is difficult to expect different results when you keep doing the same things....So let's start today, doing things differently.  Start with that offsite meeting to have a heart to heart with your husband about the business and about the things that have changed within your business.   From there we can re-focus on your goals and your short term and long term plans.  

 

I wish my answer was better and I wish I had some great magic to share but as you already knew this process is not an easy one.  Try and stay focused on the specific business issues you are facing and try and separate the personal ones.   Then let's get back together and see where we are.  

 

Best of luck and I will be here to help in any way that I can.

 

Keith

@MischelleM338817 wrote:

Hello! Keith Hall,

 

My Husband, Has a failing business again.

We did have 3 brick and mortar locations. I had gotten sick and now of course it is my fault. But we are losing everything. We are down to 1 location and sales are falling off greatly. Which I can not understand because we have a lot of warranty service for a multitude of companies. There does not seem to be a reason for the slumps. Please! Send help!



 

Report Inappropriate Content
0
Kudos
126
Views
Info Seeker
0
Kudos
159
Views

Re: Want to take your business to the next level? Ask a Business Coach!

159 Views
Message 4 of 32

Hello! Keith Hall,

 

My Husband, Has a failing business again.

We did have 3 brick and mortar locations. I had gotten sick and now of course it is my fault. But we are losing everything. We are down to 1 location and sales are falling off greatly. Which I can not understand because we have a lot of warranty service for a multitude of companies. There does not seem to be a reason for the slumps. Please! Send help!

Report Inappropriate Content
0
Kudos
159
Views
Business Coach
0
Kudos
341
Views

Re: Expanding my corporation - best financial strategies

341 Views
Message 5 of 32

Hey agian Annette  @HICAREBROKER

 

The first key point to remember here is that converting from a regular for profit corporation to a formal NON profit corporation is a complete change in direction and even completely different forms with your State's, Secretary of State, different bylaws, different everything.   My first recommendation would not be to "convert" but to start completely fresh with a brand new entity.   Also remember that forming the non-profit organization with your State is also a completely different process than applying for tax exemption under Internal Revenue Code Section 501(c)(3).   So two totally different processes!!!

 

The main difference between your existing corporation and the non-profit corporation is where the money goes at the end of the day.  Under the non-profit corporation there are no shareholders or owners who benefit from the net income of the non-profit.   The true equity or ownership rests with “members” or the general group that is benefiting from the purposes of the organization.   So at the end, no profit or money goes to those owners.   That doesn’t mean that the founders or workers cannot be paid for services, but there is no “ownership”.   If the proceeds are going straight to the missions and churches that you want to help, it may end up being much easier to just donate the funds directly.  

 

From a tax standpoint, there general rule would still be the same.  Remembering that the entity is intended to tax exempt, so there is no longer a concern of what is deductible or not since there is no tax.   However, the concept of WHAT can be paid by the new entity will still be the same.  That is the expense must be ordinary and necessary for the business and must also be reasonable.   The expense of the “poker tournaments” would have the same guidelines.   Providing cash prizes may be in violation of state laws which is something you should look into first.   Providing prizes for drawings or winning would most likely be different for your state as well.  Again, that will be specific to your charter and to your state. 

 

Providing benefits to employees would certainly be a reasonable expense.  The plan would need to be non-discriminatory.  If you are thinking of providing benefits to NON-employees (agents) that would be trickier and most likely something you should avoid.   Providing benefits to non-employees, at some point could cross a line and the workers could be deemed employees in retrospect which would be a disaster.   So be very careful in providing employee type benefits to NON employees. 

 

I know that is a lot of detail so let stop and give you a chance to breathe.   Let me know if any of that makes any sense.


Keith
@HICAREBROKER wrote:

Hi Keith,

Thanks for your response!

1. If I wanted to amend my articles of incorporation to converting to a 501 (c) (3), what are the advantages, disadvantages?  (My intent is to help fund ministries, specifically churches and YWAM-Kingdom Builders).  I'm trying to figure out if it's better to file as a 501 (3) (c), or simply donate.

2. What do I do with the stock shares?

3. If becoming a charitable corporation, would there be allowable expenses as a non 501 (c) (3)?

4. If we wanted to host a poker tournament once or twice a year and winnings were under $5K, would cash or trips be a better prize in terms of a write off or would it be the same?

5. If medical, dental and vision benefits were offered to the agents, is that a write off? 100%

 

Thanks again,

Annette

 


 

Report Inappropriate Content
0
Kudos
341
Views
Info Seeker
0
Kudos
358
Views

Re: Expanding my corporation - best financial strategies

358 Views
Message 6 of 32

Hi Keith,

Thanks for your response!

1. If I wanted to amend my articles of incorporation to converting to a 501 (c) (3), what are the advantages, disadvantages?  (My intent is to help fund ministries, specifically churches and YWAM-Kingdom Builders).  I'm trying to figure out if it's better to file as a 501 (3) (c), or simply donate.

2. What do I do with the stock shares?

3. If becoming a charitable corporation, would there be allowable expenses as a non 501 (c) (3)?

4. If we wanted to host a poker tournament once or twice a year and winnings were under $5K, would cash or trips be a better prize in terms of a write off or would it be the same?

5. If medical, dental and vision benefits were offered to the agents, is that a write off? 100%

 

Thanks again,

Annette

 

Report Inappropriate Content
0
Kudos
358
Views
Business Coach
0
Kudos
384
Views

Re: Expanding my corporation - best financial strategies

384 Views
Message 7 of 32

Hey @HICAREBROKER :

 

Congratulations on your real estate success.  It sounds like you are making a difference for a large number of families and I am happy to hear that you are ready to expand and create even more new jobs.  Well Done, and keep up the good work.

 

As you probably already know, the S Corporation entity form is a pass through entity form, so the corporation itself will not pay any federal income tax.  Instead, the income from the S Corp passes through to your personal income tax return.   So the S Corp concept is NOT a tax savings idea, and the overall federal income tax that you pay will be about the same.   However, one benefit of the S Corp form or organization is that some of that income from the S Corp can potentially pass through to your personal income tax return as “unearned income” and therefore is NOT subject to FICA and Medicare. 

 

The hard part here is that since you are providing services to the S Corp and certainly some of the earnings from the S Corp are indeed due to your personal efforts, you DO need to pay yourself a reasonable salary for those services.  Those wages will be subject to FICA and Medicare.   But the trick is once you have determined that reasonable salary, any amount of income over that amount is NOT subject to FICA and Medicare tax.  

 

For example, If a sole proprietor real estate agent earned $120,000 of net income from self-employment, they would pay approximately $15,000 in SE tax (which is the same as FICA and Medicare).  But if that same real estate agent were operating as an S Corp, and determined that a reasonable salary were, say, $80,000, then the extra $40,000 would still be taxable income but would not be subject to SE tax or to FICA and Medicare tax.   That could be a savings of about $6,000 just in SE tax.   Keep in mind that you CAN’T just arbitrarily set your salary at $80,000 or some random percentage of the S Corp income.   The salary must be reasonable.   For an S Corp that only has ONE employee, YOU, and the type of income that is based on personal services, like real estate sales, it is difficult to make a case that any of the income from the S Corp is derived from any other source than YOUR personal efforts.  So taking this stance when it is JUST you is a bit aggressive, and a stance that I would NOT recommend.

 

However, now that you will have multiple operations and multiple locations and other people generating income for the S Corp, the concept of some of your income characterized as unearned income makes TOTAL sense.   When setting your “reasonable salary” try and find as much third party support as you can…how much to other people working for real estate companies make.   The more independent third party support for the salary, the better. 

 

The most common benefit of the corporation form of operation is to provide some legal differentiation for the owners from the business.  The primary benefit here is limited liability for the owners.    In order to secure this benefit, make sure that you treat the business like a business.   Make sure all of your personal stuff is separated from the corporation business.   Make sure you have separate bank accounts, and record keeping.  Don’t pay personal stuff out of the business account.   Always keep it clean and neat.  If something bad happens, the attorney types are gonna try and show that this isn’t a “real” company, but just as extension of your personal activity.   Hopefully, that never comes up, but if it does you will be glad you paid attention to the detail. 

 

Let me know if you have other questions about your S Corp or other things that I might be able to help with. 

 

Again, keep up the good work,

Keith

 

@HICAREBROKER wrote:

Hi Keith,

 

Although I've been selling real estate in California since 1999 and was a top producer, I formed my own company in 2008 (s corp) but never hired anyone as I was happy being a small independent.

I want to begin expanding, working with the next generation and need to know how to strategically and financially utilize being a corporation.  I plan to operate brokerages out of California and Hawaii (last year obtained my Hawaii broker's license).

 

Thanks!


 

Report Inappropriate Content
0
Kudos
384
Views
Business Coach
0
Kudos
426
Views

Re: Want to take your business to the next level? Ask a Business Coach!

426 Views
Message 8 of 32

Hey @JanA818181 

 

Thanks for your question and always remember that most great small business ventures start with an idea.   So you are right on tract.   First key point, is ABSOLUTELY YES, there can be a financial reward and a level of satisfaction just from the idea even if you are not involved in the production or marketing.  As you would probably guess, the level of the potential reward as well as the level of risk will be much lower if you are only marketing your idea…but it is certainly possible. 

 

If you have decide that is the path you wish to take, then I think your original instincts are correct in that you should invest some time and money in securing patents or trademarks for your ideas.  It would be a great idea to sit down with an attorney in your state who specializes in that type of legal practice just to make sure your ducks are in a row.  I hate that my first thought is the worry that someone who do something less than ethical in dealing with another small business but I have heard way too many horror stories over the years. 

 

During that process, it will also be beneficial to visit with the attorneys that you interview about options for taking your idea to “market”.   Most of them will have experience in going from patent to production to market and may be able to get you in contact with another of their clients who has done the same thing.  In addition to that, there are many companies who specialize in helping with that process.  Again, before contacting any of those guys, I would sit down with the attorney just to make sure everything is in order.  

 

As you might also have guessed, doing everything you can to win this contest and get one of those spots with Daymond John would be awesome!!!

 

I hope this helps and gives you an option for moving forward.   If you need more detail or would just like to visit further, just let me know.

 

All the best,
Keith

@JanA818181 wrote:

 Thank you so much Coach Keith Hall for joining and offering great sound advice.  So I do not have a business as of yet but I have some really phenomoenal business ideas or inventions.  I don't have a clue on how to get started.  I would like to either get them trademark or a patent on the idea.  I don't necessarily want to develop the idea but want to get paid of the royalties of the idea, etc.  I just don't how to get started.  Is there any way you can tell me how I should get started and is there any reward for just the idea?? If not then what do suggest I do to get it promoted or investors to invest to create it and make it happen?  A lot of questions I do apologize but need to now how to get started.

 

Thank you for your advice and suggestions.


 

Report Inappropriate Content
0
Kudos
426
Views
Business Coach
0
Kudos
435
Views

Re: Want to take your business to the next level? Ask a Business Coach!

435 Views
Message 9 of 32

Hey @CynthiaW254296 

I am embarrassed to say that my first thought is that I am really hungry now.   As soon as we get your production process underway, I need to try them.   Yum!!!

 

I wish I had an easy answer to your dilemma, but it sounds like you have spent a large amount of time searching the “normal avenues” for a production partner.   I am surprised that you haven’t found someone that you can work with….Is it your understanding that the potential partners are uninterested due to expected volume?  Or perhaps competing products?  It would most likely be useful to spend some time trying to figure out why they are not interested in working out a deal for at least a short period of time. 

 

I am totally guessing here and I certainly don’t know who or how many potential partners you have talked to, but finding out the issues they have could be very useful in finding your partner.  Volume?  Price?  Timing?  Costs of production?   If we could figure out why they seem to have little interest that would be very useful.

 

As an alternative, looking in new places…finding other small businesses that are just starting out would be a great idea.  Networking through websites centered on cooking or baking or food prep, concentrating on other maybe “work from home” new small businesses would be a good place to get started.  Networking through your local Chamber of Commerce or your local Small Business Development Center could help you find other small businesses who are trying to get started just like you.   Likewise, association of small business owners like the NASE as well as the National Small Business Association (NSBA), and the National Association of Women Business Owners (NAWBO) are all great places to find other small businesses looking to grow.   Those small businesses may not be listed on the State’s registers and such.   Most likely those new small businesses will be more “hungry” (sorry for the pun) for new business and to “give you a try”. 

 

I hope this helps and gives you an option for moving forward.   If you need more detail or would just like to visit further, just let me know.

 

All the best,
Keith

@CynthiaW254296 wrote:

Hi Keith, 

I make dessert spring rolls. My dilemma is finding a co-packer that can manufacture them for me. I have potential clients, but I currently cannot meet the demand, as I make them myself. I have contacted all listed co-packers (lists from various states), no success. How can I get over this hurdle?


 

Report Inappropriate Content
0
Kudos
435
Views
Business Coach
0
Kudos
440
Views

Re: Want to take your business to the next level? Ask a Career Coach!

440 Views
Message 10 of 32

Hey @gr9810 :

 

I am sorry to hear of your issues within the board room.  I guess my first comment is that you are certainly not alone....I hear this same concern from a number of entities all around the country.  

 

As unpopular as this may sound, I am NOT a big fan of getting a book to read and expecting that to be the main answer.  Even if you can get every single member of the board to read the same book, it will still lead to, most likely, at least 21 different opinions as to what it means.  

 

I would recommend two different approaches, to be done at the same time.  First, at your next full board meeting, consider having a full agenda item with significant time allotted to review your entities overall governance policy.  If you don't have a governance, then this is a great time to introduce that concept.  Within that policy, the board should include a formal recognition of job responsibilities, conflict disclosures, reporting processes, etc.  In reviewing those governance policies you should be able to communicate lines of communication.  And even more importantly, when issues arise, you will now have a Board approved document to call upon in resolving issues without it feeling like a confrontation but solely compliance with a written board policy.  Obviously, it would be a great idea to have another member of the board propose and promote the governance policy and its implementation rather than it coming from a member of management.

 

Second, I would schedule a full day board meeting around a team building and communication seminar type project.  Bringing in a professional such as a business psychologist or team building professional would be critical.   In my opinion, this is similar to getting the book that you originally mentioned but is like having the author of the book actually read it to the group.  

 

The bottom line here is that the only real solution to this issue is improving the overall communication among the group .  There is no doubt in my mind that you have done your best to facilitate that very thing, and now it is time to bring in a professional to help. 

I hope this helps and gives you an option for moving forward.   If you need more detail or would just like to visit further, just let me know.

 

All the best,
Keith

 

@gr9810 wrote:

I'm the CEO of a 501c6 based in the US but International in membership (over 35 countries). I have over 20 members on the Board of Directors, representing a dozen or more different countries. They cannot seem to agree with each other on anything important, but all seem to feel that we should be getting more "work" accomplished from the Association's office staff (a relatively small office). On that, they all agree - let's blame the office for the lack of progress.

 

It seems that when I give them the long list of projects we have succesfully completed and are working on, the incredible progress we have made, they seem to never be impressed or satisfied. It's what I see represented by their common question, "Yes, but why haven't you finished ....?" 

 

After every board meeting, we try to ignore the disrespect for the office, we pat ourselves on the back because no one else will, and we end up taking our frustrations back to the office. 

 

Is there a good book I should read on how to get the Board to work for the Association instead of them trying to micromanage the office?

 


 

Report Inappropriate Content
0
Kudos
440
Views
cancel
Showing results for 
Search instead for 
Did you mean: 
Users
Announcements

Have a question about AARP membership or benefits? Ask it in the AARP Help Membership forum, Benefits & Discounts forum, or General forum.


multiple white question marks with center red question mark