If it were easy...

This is going to be short and sweet.

If it were easy, everyone would do it. As a business owner or potential business owner the first thing you need to tell yourself is that it is not going to be easy.

Everyone sees the glamourous side of being an entrepreneur but I want to give you a reality check. It is not easy because if it were, everyone would be the boss. Being the boss is all about making the tough decisions, sacrificing your time and resources and most importantly being in it for the long haul. You will not see immediate success, you will need a lot of planning and it may take years for the reality of your business to reach your vision but you have to stay the course and keep telling yourself – if it were easy, everyone would be doing what I am doing. Because it is not easy, I am stepping out on faith, relying on my plan and committed to doing the work to achieve success I have always dreamed of.

Time for Business

In small towns across the country, something very interesting has been happening with businesses. In my town particularly, the businesses close at noon on Wednesday. I have been trying to figure out where everyone goes after noon on Wednesday.

Since I am conducting a seminar or meeting with clients, I wonder if there are secret meetings going on around town that I am missing. This phenomenon has taken some getting used to because I'm not the type of girl to wear a watch or closely track the days of the week. My internal alarm clock goes off on Fridays signaling the beginning of the weekend and Mondays letting me to get up just a bit earlier. However, I'm still having trouble setting my Wednesday clock to remind me to get my errands run before noon. I'm also struggling a bit with businesses not being open on Saturday.

Now this is really odd...there is a retail shop that is only open on the 1st and 3rd Friday and Saturday of each month. I can not imagine what their inventory turnover ratio looks like because they only have about 48 out of 365 days to sell their merchandise and they are relying on people to 1) remember the dates that they are open and 2) to have a need during those times. That seems like a huge gamble. Imagine them being open at least five days per week and hiring someone to manage the establishment during that time, if they are unavailable. I can not image that the costs would outweigh the potential revenue. If so why have the business at all?

At one point while operating my own business, I considered opening an office. I consulted with some people that I trusted and my dad brought to my attention the consequences of maintaining an office location. I enjoy traveling and having time off, however with an office space I would have to be open when people want to do business with me not when I want to be at work. There is a serious difference in these methodologies of operating.

Being open when people want to do business with you is like downtown shops being open on the weekends. If you rely primarily on locals for business then you have to be available when they are available which is generally when they get off work – evenings and weekends. You may not want to stay open late every night but you should consider staying open late one night per week for those working shoppers that can't make it to your location during banker's hours.

Also, you have to consider what closing shop at noon on Saturday is doing for your small business. Not everyone is early to rise and shop on the weekends. If you don't want to man the fort, consider employing some of our talented youth to assist you. Although we all enjoy time off, you also need to mind your business and think about when your ideal customer is most likely to come looking for your product.

For example, if you have a breakfast shop but you hate getting up early, you can't open later and assume that your customers are going to change their schedule to fit yours. They won't. They will go to the competition which is more than likely going to be a large corporation with extended hours. Sometimes we set ourselves up to fail against the larger companies. Many people want to shop with local businesses but you have to make sure that your hours, service and product are competitive.

Think about what a difference it will make in your sales and customer service if your business hours were focused around your target market instead of your personal schedule. I know it may suck, but there can be some trade off. If you notice that no one shops in your store before noon, then considering opening later so that you can stay open later. You may have the best product in town but if you are not open to show if off...no one will ever know.

Your (Business) Dream Team

Every small business owner needs a team to help them achieve success. It is the common belief of many business owners that they can do it all. This belief is most commonly held because they think that it is cheaper for them to do it all rather than employ a team of professionals to help.

This method of starting or running a business may be cheaper in the short term but I guarantee it will cause some problems in the long run. Let me share a couple of issues that I have found while working with my clients:

• A business obtained a tax identification number as an LLC but never filed articles of incorporation with their county and state which means that they were not a corporation.
• A business owner with a large amount of liability choose a sole proprietor legal structure which left them open to excess taxes as well as unnecessary personal liability for the business.
• A business wanting to attain a business loan was unable to do so because they had no kept accurate financial records for the past three years.

There are so many more examples that I can cite, however I am going to share the five people that you MUST have on your team.

1. A business consultant: Yes, this may seem like a shameless plug for my services but having a business consultant to guide you through starting and running your business will save you so much legwork. We are able to provide a wealth of information and resources while helping you to think through decisions. If you can not afford to hire a business consultant, there are not for profits like Women Business Centers, SCORE and Small Business Development Centers that provide low cost or no cost sessions to assist you. No matter which stage you are in your business, a business consultant is an invaluable resource.
2. A certified public accountant (CPA): You may be used to doing your taxes yourself and I am sure that you have done a wonderful job, if you are not in arrears. However, you need to consult with a CPA when you begin considering starting a business and quarterly once the business is established. Using a software program like Quick Books will allow you to manage your day to day accounts, revenues and expenses. It will also allow you to print reports to take to your CPA for review. Many CPA's will bill per hour so being prepared will save you time which will save you money. Also, the more knowledgeable you are about your business finances, the less likely you will be taken advantage of. Warning: don't let the fear of being taken advantage of stop you from working with a CPA.
3. A business attorney: Find someone who specializes in working with businesses and preferably your type of business. If you are starting an entertainment company then you need an entertainment lawyer. If you will be patenting a product then you need someone who works with patents. Don't assume because they are an attorney that they will be able to help with your needs. You need an attorney to review legal documents, advise on your business legal structure, and assist with succession planning. You should never sign a legal document without having your attorney review it. If the document was not designed to produce a favorable outcome for you, you are not entitled to bail on the agreement because you didn't understand what you were signing. Knowledge is power. Also, if you need to have a legal document created. Search online for the basic document and have your attorney review it and make it compliant for your business. Attorneys also charge per hour and you would be amazed at how many hours it can take them to create a document versus reviewing it.
4. Banker/financial advisor: Many banks have financial advisers on staff while some people choose to have a financial advisor not employed by their bank. Regardless which option you choose, you need a banker and a financial advisor. It is imperative that you have a good relationship with your banker. You should inquire whether they provide SBA financing, in case you need a SBA loan now or in the future. You should also be aware of the business banking services that they provide so that you can make sure your money is working as hard as you are. Your financial advisor can help you create a benefit package for yourself and/or for your employees. Not all benefit packages require employer contributions. A financial advisor can help you plan for the future of your business and it's finances.
5. Marketing/ public relations: This is one of the most overlooked team members because everyone assumes that they can do it themselves. However, the success of your business is largely dependant on the image of your business. You can have a great product or service but if no one knows about it then you are not going to be in business very long. So, the money you may be saving will not go as far as it would if you invested it in promoting your business which would result in more clients which would result in more revenue. Funny how that works. You have to spend money to make money. A marketing professional can help you design professional collateral (business cards, logos, brochures, newspaper and magazine ads, etc) as well as help you create strategies to get publicity for your business (press releases, events, etc). I will not shop with businesses that will not invest in their image. I find it pointless to make an investment in your business, if you are not committed to doing the same.

You need these people on your team! Stop fighting it and start searching. Don't hire the first person that you meet with, no matter how impressed you are with them. Interview at least three professionals for each position, compare their rates and what you will receive in return. If you still are not satisfied, keep looking. These are not people that you want to replace each year. They are positions that want to be a staple of your company for years. They will have access to confidential information about your company and will be the people that you will rely on to guide the growth of your company. As you grow, you may even want to consider bringing everyone together once a year to ensure that everyone is on the same page with the advice that you are being given.

Check This...

I remember when I opened my first checking account. Everyone stressed the importance of balancing my checkbook. I heard it at the bank when they gave me the check register and showed me how to enter the date, then the name of the transaction and then how much was going in or coming out. Finally, I was instructed to use my math skills to add and subtract those amounts. A negative number was a sign of trouble. The lesson was further stressed by mother with every deposit to the account (I was only 16 at the time and she was making all of the deposits).

The reason I bring this up is because I have heard and noticed a lot of people having trouble balancing their checkbooks. It's not, well not always, because they can't add or subtract but because of all of the different types of transactions that we use our accounts for. Back then your only options to get money out of your account was to write a check or go to the bank. Even wire transfers were a complex process.

Today, we have automatic drafts, ATMs, debit transactions, on line bill pay and check writing. Unfortunately, those check registers have not kept up the times. Some people have duplicate checks but I find it hard to believe that you will only have one additional transaction to record between checks. The traditional check registers are usually kept with your check book but not with your debit card which causes some people to forget to record those debit transactions.

So what do you do? I have two systems that you can try. Hopefully, one will fit your situation or it may become a combination of the two. Either way, you have to find a system that works because banks don't mind covering an overdraft payment when they know they can charge more than $30 each time you make a 'mistake.'

Option 1: Keep a journal of your spending. I write down everything that I spend in a small notebook and code the transactions – whether it's cash, check, ATM or automatic draft. This helps to see where all of my money is going and not just the money in my account. At the end of the month, I sometimes face a rude awakening like one month I was going to gas station to buy coffee almost every morning for about $1.08 per day. Doing that everyday for a month was more than $20. I could have made my own coffee, bought that French vanilla creamer that I love, a package of paper cups and box of sweet and low for less than that.

Option 2: Keep a separate checking account for your bills and one for your personal spending which usually occurs with a debit card. If you know how much you spend on bills each month, you can set up an account with that much money each month and only use that account to write checks for household expenses. The second account can be the fun money. This is also helpful for people with budgeting problems because you aren't able to dip into the household money.

Your money matters and you need a solid system to help you keep track of it.

Rules of the Game

Imagine playing a game with four people and each person has a different set of rules to the game. How do you know if you are winning or losing? This is the premise that many businesses are operating on because they don't have a set of rules for their employees or an employee handbook. An employee handbook is your rule book for workplace behavior, policies and procedures. Although you may assume that everyone knows the rules and are playing by the same rules, how do you really know?

Let's say you hire two employees and they start work on the same day. You have an orientation and give them the exact same rules at the exact same time. Two weeks later, one employee begins breaking one of the rules while the other is following procedure. You chastise the 'bad' employee for their behavior and they respond, “I didn't know I wasn't supposed to do that.” Without proper documentation that those rules were explained, the employer has no evidence that the employee is acting improperly – even if employee #2 is doing all of the right things.

Every employer that maintains employees should have an employee manual that spells out how they want their employee's to behave and what the employee can expect from their work environment. These guidelines should be clearly spelled out and can not show bias in any form. Your manual should include, at least, the following sections:

• Attendance policy – when do you expect your employees to come to work, when are they allowed breaks and at what time can they leave?
  
• Use of company property – will you allow employees to check personal email during down time or is personal use of computers prohibited?
  
• Confidentiality - are your employees privy to confidential client information and if so what happens if they betray that confidentiality?
  
• Dress code – what image do you want your employees to portray? Will you have a business casual dress code or will they be allowed to wear what they want? Will they be allowed to wear denim on Fridays or required to wear a suit and tie everyday?
  
• Safety and accident rules – how will you prevent workplace accidents? Are there any rules that should be followed to decrease your liability and the probability of an accident occurring?
  
• Substance abuse – what will be your policy regarding employees using illegal substance? Will you have a zero tolerance policy which means they can not use illegal substances under any circumstance thus requiring random drug testing or will you only require that they not use illegal substances while working?
  
• Sexual harassment – it is imperative that your company have a sexual harassment policy that lets everyone know that this behavior will not be tolerated and that spells out disciplinary action for violating the policy.
  
• Performance reviews - all employees should receive a performance review at least once per year (preferably quarterly) so that they know how you feel about their work. Each person should be judged using the same criteria which should be spelled out in advance so that they know what your expectation is for their performance.
  

Additionally, employees want to know what benefits they can expect from their employer. Having these benefits in writing ensures the employees that everyone is being treated fairly and equally. The following sections are the most popular guidelines for compensation and benefits:

• Payroll – everyone wants to know when and how they will be getting paid (weekly, bi-weekly, monthly, etc). Also, will you require direct deposit or will they be able to pick up their checks at a certain location at a specific time?
  
• Holidays – you should establish at the beginning of each calendar year which holidays your business will be closed for and which holidays your employee will be compensated.
  
• Vacation/Sick Leave – you should decide if you will allow your employees to have paid vacations and how they will accrue sick time off. How do they earn time off – after one year, six months, etc? You must also consider policies for funeral leave, jury duty, military service and the family and medical leave.
  

It can be a pain to put this manual together because it requires time and effort (something many of us don't have much of) but ensuring your employees are all playing by the same rules is a smart way to mind your business and reduce your legal liability.

Charge It!

As we continue to navigate through this digital revolution, more and more people are forsaking paying for items, even some bills, with cash or checks. The convenience of using debit/credit cards has made life for the consumer much smoother. However, what happens when a business does not accept debit/credit cards? Are you in jeopardy of losing customers because your business has failed to keep up with the technological revolution? Unfortunately, you are.

Your business may receive multiple calls per day from telemarketers asking if you accept credit cards, do you want to accept cards, can they set you up to accept credit cards? Although you may want to jump in to merchant processing (that's the technical name for taking consumer money through credit cards), there are a few factors that you should consider.

Accepting debit/credit cards is a process that involves you taking your customer's bank information and submitting it through a terminal which sends the information to a merchant service using digital transmission. The computer system determines if your customer has enough money to process the transaction and then sends you an approval or denial message. The company takes the money from the client's account, charges you a fee or series of fees for processing the transaction and then sends you the balance. When choosing a company to process your credit/debit payments, consider the following factors to find the best company to work with.

How will you be accepting payments? Some companies will charge a different fee based upon whether you are operating a web store (accepting payments on line), accepting payments over the phone or swiping the card in person. Accepting payments in person will generally have a lower fee because there is a reduced possibility of fraud – someone using someone else's card – since you are able to verify the existence of the card and the person using it.

How much is the set up charge? Often companies will charge a nominal fee to set up your account however if you are a shrewd business person you may be able to have this fee waived.

How much will the terminal cost? You may have the option of renting a credit terminal or paying up front for the machine. It may seem cheaper to rent but you should take the monthly cost and multiply it by the number of months in your lease agreement and compare that with the cost to pay upfront. You may be surprised at the difference in price. If a machine costs $59.95 to rent over a 48 month period or $595 to purchase, is it cheaper to pay the $595 or $2,877.60 over 4 years? However, you must also consider your budget. Can you afford to pay the entire amount upfront? If not, ask if they sell refurbished machines. These are machines that were returned to company because of a malfunction, got fixed and are now being sold at a discounted rate.

Ask about the fees. Tell them that you want to know about every fee associated with this service regardless of the likelihood of you incurring the fee. These include application fees, cancellation fees, statement fees, gateway fees, monthly service fees and monthly minimum fees. You must factor these fees into your monthly budget. For example, if you are paying $115 in fees each month and processing an average of $150 in transactions, you are actually only netting about $35. In this case, it may not be worth it for you to process credit transactions or you should find a less expensive company to work with.

There are also fees associated with processing each transaction. First there is the discounted rate which every Visa, Master card, American Express, etc charges for processing a transaction using their card. Usually this fee is a percentage which can range between 1% and 3% depending upon whether you are swiping or keying in the card data. The other is a transaction fee which is charged per authorization and can range from $0.20 to $0.50. For example, if your merchant service charges 2.44% per transaction and $0.24 per authorization and you have a charge of $33.00; you will pay $1.05 for the transaction.

The next consideration is funding. Funding is how and when your merchant service gets you your money. Some banks offer merchant services and will transfer the funds directly to your account, however, you may pay higher fees for this convenience. If you choose a third party merchant, it may take up to five business days to receive your money. Always ask when your fees will be deducted from your account and how you will funded for the payments received.

Keeping up with modern technology is essential to every business' growth, however you must be smart and mind your business. It's not always about how much you make, but how much you keep.

Don't make it personal

Setting up a business banking account separate from your personal account may save you hours of productivity for other tasks. It will allow you to not only track your purchases without having to figure out if it is a personal or business expense but it will also allow you to establish a relationship with your business banker which could come in handy when your business is ready to grow and begin asking for financial assistance. There are a few points to consider when choosing the bank for your account:

• Do you prefer a local bank or a national chain? A local bank will provide more personalized service and chances are greater that you will have direct interaction with the bank president. On the other hand, if your business requires that you travel outside of your local area, you may want to consider a chain because you will be able to get assistance in a wider area.
• Do you want to integrate your accounting software with your account? Some banks only integrate with certain software programs. If you chose your software first then you want to make sure your bank is compatible with that program.
• Do you want merchant services available through your bank? Some banks offer merchant services through a third party, however, using their preferred company may allow you instant access to your funds or 24 hour access. Using an outside merchant processor may be cheaper (we will go into more detail in a later article) but there may be a delay in getting the funds transferred to your account.
• Do you want to process your payroll through the bank? You may have a different system for processing payroll but some banks offer free checking for your employees if the bank is managing your payroll which not only includes paying your employees but also paying your employee taxes.
• How many transactions will you have each month? You must consider how frequently you will be making deposits (daily, weekly, merchant service transactions) and withdrawals (payroll, vendors, bills).
  

Most banks offer different levels of business banking accounts depending upon the amount of transactions that you anticipate and the amount of money you plan to leave in the account. When you are ready to open your account, most bankers will require the following documents (always call the bank first to double-check):

• A copy of your letter from the IRS listing your EIN (employer identification number)
• A copy of your business license
• A deposit to fund the account
• A driver's license (or other government issued identification)
• A partnership agreement if you are a partnership or a copy of your articles of incorporation if you are a corporation
  

All parties wanting access to the account should be present when the account is open. Mind your business and keep your personal and business banking separate!

Your business needs protection

You pay to insure your home. You pay to insure your car. If you can, you pay to insure your health. However, many small business owners fail to attain insurance to protect themselves and their business from worse case scenarios. Business insurance, like home insurance, can be purchased to protect your business from fire, theft and other losses. Although neither of us have the time to review every type of business insurance, we will review five of the most common types: Liability, Property, Key Man, Automobile and Home Office.

• Liability insurance for businesses is a protection against liabilities that you may incur during your day to day business activities. This type of insurance is especially helpful if you are manufacturing a product because of the risk that can be associated with someone becoming harmed while using your product. Many small business owners do not have the capital in their business to protect against such a catastrophic injury.
  
• Property insurance is used to protect the physical assets of your building whether you rent or own your space. This is helpful in the event of a fire, flood or other disaster because it can offset some of your replacement and repair costs.
  
• 'Key Man' insurance is a policy taken out on a key employee of the business to hedge against the financial losses that the business would incur in the event of that employee's death or illness. Many banks or loan programs may require this type of policy if the revenue stream of the business is dependent upon a key person.
  
• Automobile insurance is necessary for your personal liability but if you use your vehicle for business purposes, you may need a special insurance – non-owned automobile coverage. Additionally, many small business owners have begun using car magnets to advertise their business; however, you should make sure your car is insured as a business vehicle if you are doing so because you may not be covered under your personal policy when traveling.
  
• If you are operating your business from your home, you may not need a special type of policy; however, you should take an inventory of all of your home office equipment and insure that it is covered under your home owner's/ renter's policy as office equipment.
  

When purchasing insurance for your business, consult a reputable insurance agent that specializes in insurance for businesses. Don't be afraid to visit with two or three agents and get quotes. Warning: don't try to price match because an agent may try to meet or beat another agent's quote by adjusting your liabilities and deductibles. You want to compare apples to apples so decide on the level of insurance that you need - go home, compare the information and ask more questions if you need to. This is a key component of minding your business.

Dunn and Bradstreet has your (business) number

Many small business owners do not understand why they have a difficult time establishing credit for their business. They are confused when credit applications ask for their Dun & Bradstreet number. They wonder who is Dun & Bradstreet (D&B) and why would they have my number?

Dun & Bradstreet is a provider of credit information on businesses. Just as your social security unlocks the vault to your personal financial information, a D&B number will do the same for your business. The reports are used by businesses and financial institutions seeking to extend credit to your business. Much like a personal credit report, the lender will submit updates on your payment history and terms of their agreement so that other lenders can make informed decisions about your business.

So, why would you get a D-U-N-S Number rather than continuing to use your social security number or tax identification number? It’s not because it is free because there is a fee to create a D&B credit profile. I believe this is done, not as a primary means of generating income, but because it creates a barrier to entry. Not all businesses have the cash flow to purchase the number, which means they are probably not in a position to take advantage of credit opportunities.

Dun & Bradstreet also allows businesses wishing to extend credit the opportunity to purchase reports of varying degrees about the potential client. This method of qualifying reduces the assumed risk because there is a history of the business’ ability to handle credit. Additionally, the business owner is able to separate their personal credit from the business, which could prove advantageous for businesses with high inventories or those needing to lease equipment. Tying these purchases to your personal credit will reduce your ability to make personal purchases without seeming overextended.

Mind your business and research how a D-U-N-S Number can increase your business’ credit and creditability.

How long will you stay retired?

Ever wonder why some people retire and then a few years later they are back at work? It's because the average American does not have enough money to retire and stay retired. Therefore, they must find additional employment to supplement their shortfall. I've seen people reaching the age of retirement with $200,000 in their retirement account and they feel good about their prospects of a happy life after work. What they fail to consider is that they are currently living a $40,000 per year lifestyle. The probability that you will cut back more than 20-25% of your annual lifestyle is not realistic. Let's do some simple math - $40,000 divided by $200,000 equals about five years of retirement. So, what do you do?

As you near or plan for retirement, there are some decisions that you have to make:
What do you want to do during retirement? Some people like working and want to continue working but doing what they choose to do rather than what they have to do. In this case, research how much that job would pay and factor that as part of your income during retirement. It will reduce the amount that you will have to draw from your retirement account. If you want to sit home and watch TV everyday, that will also effect your monthly retirement income. Your electric and cable bill may increase but your driving expenses may be lower. Whatever you plan to do, develop an idea of how much that is going to cost you per month and per year so that you will know how much you need to live comfortably then multiply that by a realistic live expectancy and you will have a ball park of how much you need to have in an account when you make your retirement toast.

What about social security? It is a personal decision to consider social security in your retirement income. For most people, the amount they will receive from social security will not be enough to sustain their lifestyle and you may want to retire before the age that will allow you to draw full social security. Therefore, you should base that decision upon the annual statements that you receive from the government detailing the expected amount that you will receive based upon the year you retire.

How much should I be saving toward retirement? My advice is to save as much as possible but you should consult a financial advisor about where to save your money. Most employers offer a retirement plan such as a 401k and may even offer a percentage match. If you employer offers a match, then you should take advantage of that. For example, if your employer matches 50% of the first 6%, then they will match 3% of your 6% which would be a total savings of 9%. If you are nearing the age of retirement and don't feel as though you have saved enough, there are catch up provisions that will allow you to save more.

What if I can't save more? Some people are in a position where they have no more to save. If this is you then you should plan to work longer at your current job, work part time during retirement or plan to spend less. It is important to make these decisions before you retire rather than getting to year four and seeing the money begin to run out and panic because you don't know what you are going to do.

Retirement is a privilege. It is something that you earn by having a plan and making good decisions. Traditionally, Americans were able to retire comfortably because they bought a home in their 20s or 30s with a 30 year fixed mortgage, didn't spend more than they earned and kept a little nest egg tucked away. By the time they were ready to retire, the kids were out of the house, the house was paid for and they had a little money in the bank. Some sold their homes and lived off the equity while others enjoyed living rent free with minimal expenses and collected a little check every month. Today, we are so debt ridden and upside down in our mortgages, we can't afford to save without withdrawing the money the next week and the prospect of a comfortable retirement is an illusion that may never be attainable.

Your money matters and you need a plan to deal with your current situation so that you can make the good decisions that will lead to a comfortable retirement. Don't think that one day you will wake up, be 65 and able to walk away from your job. If that's your strategy, you may be 75 in a work force competing with 25 year olds.

Do You Deserve Credit?

One of the main complaints that we all have with credit card companies sending cards to teenagers is that they don't deserve it. The theory is that they haven't earned the right to have access to thousands of dollars that they may not be able to repay. However, how many of us deserve credit?

It wasn't until the prosperity years of the '90s that credit became widely available. Before then, you had to have excellent payment history or lots of cash in the bank to access credit. Creditors were leery of allowing the common man access to its stash. This all changed when they realized that we are consumer society. Studies have consistently shown that Americans spend more than they earn. It doesn't take a rocket scientist to figure out that credit keeps us in that flux. We take no issue with buying a home that we can't afford, driving a car we can barely maintain or wearing clothes that we never should have bought. Credit has allowed us to create a lifestyle that may be enviable on the outside but no one realizes the strain that paying these bills puts on our lives which essentially makes us a slave to our jobs. We can not enjoy the freedom of doing what we want to do rather we are forced to stay at jobs in which we are unhappy or defer our dream job which may not pay as much as we would like because we have so many bills.

Credit alone is not the culprit instead it is the fact that creditors realized that the people wanting credit didn't deserve it so they figured out a way to punish them for their selfish desires – interest. Interest is a complicated beast that can take over a balance and have it whooping your butt before you even realize what's happened. If you are only paying the minimum payments each month, then you are essentially feeding the beast (interest) and starving the monster (principal). It may seem that the monster is being held off but the beast is growing and taking over your life.

I have nothing against credit, when used responsibly. It's almost like a gun, in the wrong hands it can be deadly. Credit is actually necessary in our society. If you want to make a significant purchase, like a home or a car, then your lender will want to know how you have handled your credit in the past. They will be looking for your monster and your beast to be tamed in a nice little cage called low/zero balance.

Every person should have at least one credit card, preferably a universal card like Visa, Master card or American Express, for emergencies. However, opening your wallet and displaying a credit card collection like newborn baby pictures is not impressive. The more accounts you have open the more leery a creditor may be about lending to you regardless of the their balances. Imagine you have six cards with $30,000 in available credit and an annual salary of $40,000. You may only have a total outstanding balance of $4,000 but imagine some traumatic event happening in your life, a creditor's worst nightmare is you going on a $36,000 shopping spree and never be able to repay your debts.

Not many of us deserve credit because we are selfish and materialistic. Rather than using credit cards for emergencies, buying the best house with an affordable mortgage and choosing an economic car; we choose to be slaves. Free yourself, pay down your debt and so that you can enjoy life. Having a low or no debt lifestyle allows you take advantage of jobs that you enjoy, allows you to save extra money for vacations and keeps you from dreading to open your mail.

Your money matters – its not about how much you make, but how much you keep.

Does your business have a social security number?

If you are a business owner, that number is called your tax identification (TIN) or employer identification number (EIN). This number is used to identify your business just as your social security number identifies you as an individual. If you have any employees, this number will also show up on their tax records as the identifier for your business. You will use this number to open bank accounts, apply for credit and on any other application that requires your business's identity to be verified.

Because many small business owners are often sole proprietors, they forgo establishing an EIN and use their social security number. Although your assets and liabilities are one and the same, the problem is - you have to use your personal social security number more often. By now, we have all heard about the dangers of identity theft so can imagine that each time you use your personal social security number you are increasing your chances of having your identity compromised. All business owners are allowed to apply for an EIN through the Internal Revenue Service (IRS) at no charge. If you are a sole proprietor, you may only have one (1) EIN no matter how many businesses you have. The application is called an SS4 and can be filled out online (http://www.irs.gov/) or you can print and mail it.

New business owners should obtain this number after you decide on a name and legal structure of your business. If you are an existing business and currently using your social security number as an identifier, you can still apply for an EIN but you will need to change the number on all of your bank accounts, credit accounts and accounting paperwork. Although this may seem like a tedious task, imagine the consequences of someone stealing your identification because you didn't take the time to mind your business.

Discover your inner wine expert

It took me a LONG time to develop a 'sophisticated' wine palate. I believed that wine began and ended with White Zinfindel. As I grew older, I began stepping outside of my food and wine comfort zone and discovered a whole world outside of Soul Food and White Zin. The food part was easy because I discovered that no matter how the fancy the restaurant – everyone serves chicken and it's hard to mess up chicken. The wine, on the other hand, was a bit more tricky. While hanging out with my more cultured friends, I would notice them ask for a wine menu and read it with great interest. I, not wanting to feel left out, would also request a wine menu; however, as my eyes glazed down the extensive list, I had no idea what I was looking at or what I was looking for. Sometimes I got lucky, but sometimes I wanted to ask for a refund and a Crown and Coke. I knew that I had to do better. After some trial and error, I have found a few reds and a few whites that are staples on most menus and allow me to be considered 'the cultured friend.'

Let's start with the white wines.
The classic is a chardonnay because it is one of the more versatile wines and goes well with seafood. It generally has a fruity flavor that can range from apple and lime to tropical fruit depending upon where its produced and in what type of container. Some people find it a little dry when compared with White Zin. Riesling, my favorite, has a sweeter taste and goes well with spicy foods, poultry and pork. As the wines age, they embody more of a honey flavor coupled with their natural green apple, pear or lime flavor. The sauvignon blanc also goes well with seafood, poultry and vegetable dishes because of its grapefruit and grassy flavors.

Red wines tend to be more of an acquired taste because they are very dry and served at room temperature rather than chilled like white wines.
Merlot wines are the softest and generally better to start your red wine experience. Their flavors range from blackberries to plum and chocolate. Cabernet Sauvignons have a stronger flavor than the merlot and can embody flavors of vanilla, cedar, chocolate or coffee. Cabernets and merlots are best with beef because of the strength of their flavors. Pinot Noirs, on the other hand, have a cherry, raspberry or strawberry flavor and are best paired with salmon, poultry and vegetable dishes.

You may have noticed that I didn't mention any brands in describing these wines because each distributor has a different methodology of developing their wines thus the differences in tastes. The most important thing to note is which wines are best paired with which foods and to have a general idea of what they will taste like before you order.

I recommend hosting a wine tasting. Invite a few friends over that also have an interest in developing their wine palate. Each person can bring one bottle of wine. You can mix whites with reds or focus on white wines during one event and reds during the next. Wine is meant to be enjoyed not chugged so take your time, sniff the aromas and see if you can tell what flavors are present and begin sipping away. Be careful because wines can get your drunk pretty quick. If you get started now, you may find yourself introducing your family members to your favorite wine during the holiday season. Then, you can be considered 'the cultured family member.'

Choose Your Business Legal Structure

Three out of four businesses fail in their first three years. Not because they are lazy or have no desire to succeed but often because they have not done the proper planning or acquired a toolbox for success. It is my desire that I can help at least one of those three businesses become a success story.

Let's start with the first decision that you should make as a business owner. What will be the legal structure of your business? Some of you may be established business owners, new business owners or thinking about starting a business. Regardless of your status, it is important to understand the different legal structures to ensure that have chosen wisely. I am not an attorney so this article is for information only. You should consult an attorney that specializes in working with business owners as well as a certified public accountant (CPA) regarding the legal structure of your business. No matter which option you choose, there will be legal and financial consequences that you must consider.

Sole proprietorship – this is a very common structure for smaller businesses. Essentially, the business and the individual operating the business are sharing assets and liabilities. All of the profits from the business are taxed as income for the owner. Although the owner has complete ownership of the assets, the owner is also personally liable for all of the debts incurred by the business.

Limited liability corporation (LLC) – this form of corporation allows business owners to protect their personal assets by creating a legal entity that is not associated with their personal assets. The business is able to incur debt and acquire assets separate from the business owner.

General partnership – this exists when two or more people come together and decide to share in the profits and losses of a business. A partnership agreement should be created to document the responsibilities and liabilities of each partner as well as a contingency plan in case a partner dies or wants to exit the partnership. Each partner is liable for the debts incurred by the business and the profits are taxed to each partner based on their percentage of ownership in the business.

Limited partnership – this is essentially the same as a general partnership except there are two types of partners: a general partner who has greater control over the business and limited partners who share in the profits and liabilities based on their investment percentage.

'C' Corporation – this form of a corporation establishes the business as a separate entity with its own rights, privileges and liabilities. The corporation is made up of a board of directors, shareholders and officers. You must file articles of incorporation with your local probate office and State of Alabama to be legally recognized as a corporation. Although this legal structure provides more legal protection for the owners, it is subject to more government regulation and profits can be taxed on the corporate and individual level.

'S' Corporation – this form is very similar to a 'C' Corporation except it allows the corporation's shareholders to only be taxed once - as a partnership or as a sole proprietor.

I hope this information was helpful. Don't forget, call your attorney if you have any questions.

How to host a fabulous dinner party in 5 easy steps

Step One: Set a date. This is the most difficult step because we are all so busy and often put these events off to later – a date that never arrives. Set a date and stick with it.

Step Two: Decide on a theme. Have fun with it. Haven't you always wanted to host a luau? What about a Moroccan feast? Choose your theme and go all the way – invitations, menu, decorations, music. You don't have to spend a fortune. Go online and get some ideas and then head to the dollar store and see what you find. Encourage your guests to dress up and let loose.

Step Three: Invite 5 people. Your guests will be the most important part of the event. You should invite one person that you work with, one friend that you rarely get to see, one person that you don't know very well but would like to get to know, your best friend and the person that would kill you if you didn't invite them. You can gage how much alcohol you will need by how well you anticipate this group getting along with each other. Don't invite a lot of people because you don't want to stretch yourself too thin trying to entertain and you want to create an environment where your guests can all converse and get to know each other.

Step Four: Prepare. Make sure everything is taken care of before your guests arrive so the party runs on autopilot. Don't strive for perfection. It may seem a little anal but create a time line of activities just in case your party gets a little lame.

Step Five: Have fun! Your guest will feed off of your mood. If you seem anxious, then they won't be able to relax. Make time to converse with everyone and try to find out one thing that you didn't know about each person. This opportunity may not come along very often and it will be over before you know it, so take time to smell the roses and enjoy yourself.