Don’t forget Monday November 15th at 6:30 PM is the Business SENSSE Meet and Greet event. It’s a chance for solo and microbusinesses to connect, share their experiences, learn how to improve their businesses, find ways to collaborate and in general – thrive in this current economy.

All our Community Business Guide (CBGs) will be there.

Register online by clicking the box to the right on this page

We’re creating a new kind of small business community with three key differences.

1. We’re focused on solo and micro sized organizations
2. There are no big or scary commitments, no quotas, no mandatory attendance.
3. We interested in having fun while learning how to learn more and help each other.  Participation and interactivity are strongly encouraged.
   

Smart Partnerships:

In preparation for the meeting, I’ve been listening to and reading more on Smart Partnering by Kare Anderson. For those of you who aren’t familiar with Kare, she’s a business and communications consultant and blogger, who’s been showing small businesses how to team up together to multiply their strengths and amplify their exposure in viral, publicity-friendly ways.

Any example of a micro businesses working together always gets my attention but ones that boost their local economy, get extra points and the ones that promote local artists get extra special, secret, double bonus points. Here’s an example from Kare.

A small gift shop owner in a scenic, Canadian resort town (Victoria, BC), partnered with a pack and ship center and local craftspeople to create a unique destination for tourists and a new profit center for herself.

The craftspeople supplied their works to the fulfillment house and a sample piece for her to display on a special wall in her small (but well located) flower and gift shop.

Customers coming in for a bouquet or card would see the display wall and often end up placing an order based on the samples showcased.

She’d collect the money, fax a sheet of the days orders to the fulfillment center where the designated item(s) would be boxed and shipped out.

She took a smaller percentage than normal (30% instead of the usual 50%) but didn’t have to stock anything beyond a showcased sample, or handle any of the shipping tasks. Later on she added an online store to capture more repeat business.

A few years later, this side-niche accounts for 60% of her sales and 70% of her profits and has built her a reputation as the “got-to-see-it” shop on every tourists guide’s list.

Besides improving her income (without a large investment of money or time) she’s become a gallery of sorts to showcase her town’s local artists and gave them a new source of income and recognition.

DWYL friend and graphic designer, Alison Biggs told me about an interesting partnership she’s forged with business and portrait photographer Suzanne Larocque.

In brief, Suzanne snaps a series of scenic pictures and Alison crafts them into a unique and exquisite calendar.

They split the costs to have them printed and gift boxed then present to their clients at holiday time. All of which gives their clients a beautiful and memorable gift they can use.

While Alison and Suzanne might be perfectly happy with their current collaboration, I couldn’t help but play with some of the concepts in the book.

Who else could join in on such a partnership? A printer would seem likely but Kare also encourages looking for unexpected partners.

Could the end result, a gift for clients also be marketed as a revenue producing product of its own?  Last year the images were from all over the world. This year it’s iconic places in the valley. Might the theme of the calendar’s photos indicate potential partners or buyers?

Do you have any examples of partnerships or collaborations you’ve done with other businesses?

Small Business Summit:

Speaking of collaboration, there’s a “Resilient Businesses Small Business Summit” scheduled (10am to 3pm) on November 13th at Holyoke Community College’s Kittredge Center .

WHAT: Resilient Businesses Small Business Summit

WHEN: November 13, 2010, 10am-3pm

WHERE: Holyoke Community College Kittredge Center

REGISTER: talk.resilientbusinesses.com

FEE: $25 per attendee – includes coffee, refreshments & lunch

Organizers Rich Roth, CEO of TnR Global and Karen Ribeiro, Summit Director tell me it’s based on the un-conference design, where small business owners are invited to participate in an active dialogue centered around creating and sustaining Resilient Small Businesses in western Massachusetts.

The topics will range from economic stability, current and future policies, best practices, to program support.

Roth says “The needs of Small Businesses are not fully understood by federal organizations and policy-makers. And yet, Small Businesses are at the heart of our economy. They create a majority of new jobs and employ over half of the workforce. We need to bridge the gap between them and their support systems.”

I wholeheartedly agree and will do everything I can to make it. It’s sounds like it could be quite exciting.

DON’T EAT LUNCH ALONE (DELA)

Don’t forget to mark the 1st and 3rd Thursdays on your calendar for DELA. Each one I’ve been to has had great conversations, good networking opportunities and some choice laughs.

WHAT: Casual networking over your own brown bag lunch

WHEN: 1st and 3rd Thursday of each month @ 12:00 noon

NEXT LUNCH: November 4th

WHERE: South Congregational Church (45 Maple Street in Springfield)

PARKING: Lot in the far back of the building.

Announcement:

We’re on for a new meeting date and place: Monday, November 15th @ 6:30 PM!  We’ll be meeting at the Scibelli Enterprise Center in Technology Park across from the STCC campus (Bldg. 101).  This is the same building that houses MSBDC, SCORE, The Deliso Videoconferencing Center and the Springfield Business Incubator.

If you’d like to post a question for one our Community Business Guide (CBGs) go ahead send us a note through the contact form.

QUESTION FROM: Anthony (greater Springfield MA area) who asks about estimated quarterly taxes.

ANSWER BY: Community Business Guide (CBG) Oscar E. Ramos of Ramos Accounting

Q: “Do I have to file quarterly taxes yet? I’m not making that much (yet)”

“My accountant said that because I am not rolling money (yet) and making less than about $15K so it really isn’t necessary yet. My concern obviously is that accountants cost a few hundred dollars if I am not mistaken and for 4 times per year!? So say I start making MORE money next year, would it be acceptable to do taxes like halfways through, then if I start making even MORE then quarterly?”

A: “Yes, and on a quarterly basis.”

“You as a sole proprietor have to send in estimated tax payments to both the IRS and the state. There are no filings of any reports. What you need to send in is enough to cover income taxes and self-employment taxes for the IRS and an income tax estimate for the state.

What the exact amount is depends on whether you have a loss or a gain in your business. You are typically charged income taxes base on the tax rate for your taxable income and self-employment taxes at a rate of 15.3% of your gain or net income.

Every three months {see schedule below} you should figure out your income minus expenses and if your have a gain or net income then send a payment for the tax bracket percentage you are in plus 15.3% for self employment taxes.

For the state, send in 5.3% for income tax only. Now there are many factors that you have to consider to get it within a ballpark range but this is has been the simplest rule that I can give to a small business owner.”

Oscar E. Ramos of Ramos Accounting and Tax Service

Just to add my own experiences Anthony, I’ve done these for a few years and they really are quite easy. (CT state ones may be a bit more complicated.). Below are the links to the forms or vouchers most sole proprietors would use.  Take a look at them and I think they’ll be a bit less intimidating.

ESTIMATED TAX VOUCHERS

Federal 1040-ES 2010

1st payment . . . . . . . . . . . . . . . . . . . April 15, 2010

2nd payment . . . . . . . . . . . . . . . . . . June 15, 2010

3rd payment . . . . . . . . . . . . . . . . . . . Sept. 15, 2010

4th payment . . . . . . . . . . . . . . . . . . . Jan. 18, 2011*

MA Dept. of  Revenue 2-ES 2010

CT Dept. of Revenue CT-1040ES form

9/15/10 Addendum:

I just found out that MA has a quick, easy online option for ES payments here.

Also here’s a page that answers some more questions about Estimated Taxes in MA.

~ Trish Truitt

Option 1) Find another company to make them. However the design specs were precise and we were picky.

Option 2) Make them ourselves. However that would have meant a serious cash outlay for not just the equipment, but also the ongoing expense of renting and maintaining a facility.

The idea of plunking out a bunch of cash (that we didn’t actually have) as well as ongoing rent for a facility made us both nervous. The product line was an experimental, and we both preferred to have more orders to back us up. Plus we both had enough experience to know that banks wanted nothing to do with a tiny upstart graphics firm, looking for a few thousand dollars to try something new.

THIRD OPTION

Creative problem solving has always been, for me at least, like a real-life Rubik’s cube. I’m convinced that when you apply enough creativity to a problem you’ll usually find a third or fourth option.

I tapped my network, made a few calls and found another local manufacturer. However instead of approaching them about making our products, I asked for something else – time, space and use of their equipment. Explaining our situation I asked the owners, a father and son team, if they’d be willing to let us rent use of their facilities by the hour. We served a completely different market and I was willing to put that in writing. Having a legal firm in my family, I had some agreements drawn up which they reviewed and signed. Even paying standard price for the agreements would have cost a fraction of what the equipment would have.

BETTER-FITTING SOLUTION

Greg (the son) and Gus (the dad) became my new best friends. Greg particularly took me under his wing. First he trained me on how to properly use the equipment, for efficiency and safety sake. Of course he had a vested interest, such as not wanting me to get blood all over his workshop but he went further still. He taught me effective shortcuts, safer methods, and introduced me to his favorite vendors. I had been paying in advance for my main materials. His vendor had better pricing, delivered faster, and offered a better selection. Plus they gave me a line of credit! When we had more orders, we booked more hours, when business slowed so did our production expenses. The solution fit so much better than a heavy loan burden that would have been consistently expensive no matter what revenue was coming in or not.  Business grew and I ended up having a good year of mentored shop time with Greg and Gus.

When it came time to buy my own equipment I know which brands were best buys and had moved into a home with a space where I could locate my mini-manufacturing plant.

Yes the economy sucks right now.  Instead of whining that traditional methods of doing business don’t work, let’s look at ways we can apply creativity and our networks to find new solutions. After all, building a new economy takes new ideas.

CHALLENGE: Do you have a small business creative solution to share? A third option or stroke of bootstrapping brilliance that saved, made money or created value in some other way.

If you do, please post a comment or send me a summary (under 100 words) that outlines the idea.

~ Trish Truitt

Chances are you do. In fact microbusinesses make up nearly 92% of all US business entities. Most are solo operations, one person, a consultant, a contractor, a freelancer or some other independent soul.

All told they’re at least 27 million such businesses in the US. I say ‘at least’ because there are indications that the real figures may actually be higher.  Though buffeted by the economy, like everyone else, there are also indications that that number is rising at a fairly rapid rate.

Some are reluctant entrepreneurs, trying to fill in lost job income by finding their own work. Others have taken the opportunity to examine their lives and have decided this is the perfect time to pursue doing what they love and following their dreams.  Others see the rough economy as fertile soil to grow a new business venture that answers a dire need such as clean, renewable energy.

There are numerous places where a business owner, in the greater Springfield MA/Enfield CT area, can go to network.  I encourage you to check them all out and find the ones that work best for you.  The Affiliated Chamber of Commerce of Greater Springfield in MA, Tobacco Valley Chambers Alliance in CT, BNI, WBOA and many others are all valuable contributors to the business community.

As a micro or solo business owner, we think you’ll find Business SENSSE to be a valuable part of your strategy. Our key focus will be to help the growing micro and solo business community, find ways to survive and thrive in this changing economy.

Here are a few of the immediate goals for BusinessSENSSE and an idea of what ‘s planned for the future.

Now:

• A fun, efficient, low commitment way to meet other microbusiness owners.
• Opportunities to get on-the-spot advice, ideas and feedback from small business experts, and other local businesses in a creative and collaborative environment.

Upcoming:

• New unique skills and informational training not being offered anywhere else.
• Ideas, opportunities and communication channels to help you make profitable connections, save money and make better use of what you already have – in customers and resources.

If you’re interested in being a part of this dynamic, new, community of business owners, please join us at our first meeting, August 26, 2010 in Springfield MA.

~ Trish Truitt