A PSA About Your Tax Minimization Strategy

This week I have a quick PSA for you to make sure you’re not shooting yourself in the foot with your tax strategy. This is going to be a super quick post, but I hope that you’ll take it to heart.

As you all know, I’ve served literally thousands of entrepreneurs – and I don’t mean because I have thousands of followers here on YouTube. Between Venture Catalyst Consulting, the volunteer work I’ve done, and the non-profits I’ve managed – I’ve seen a broad spectrum of business owners from a number of different industries and backgrounds. One thing that is incredibly common, seems like the smart thing to do, and then often comes back to bite you in the butt is the vast majority of entrepreneurs’ desire to get their tax bill down to almost nothing.

Now, don’t get me wrong, I hate paying taxes just as much as the next person, but if you’re a business owner you need to take a step back, think about your long-term goals, and then work with your accountant to determine the best tax optimization strategy for you; not the best tax minimization strategy.

A tax minimization strategy is just as it sounds – you will manage your business and your finances in such a way that you’ll pay the smallest dollar amount in taxes as is legally possible each year, focusing just on that year.

The problem is, when you do this as a business owner you’re potentially making your business look less successful than it is. If you plan to work in your business forever, shut it down when you retire, and self-fund the entire time, that may not be a big deal. If you ever want to get a loan, however, or sell your company, you’re making life harder on yourself. Lenders and buyers want to see that you make money, not that you eek by.

What your tax strategy should be each year depends on your business and your goals and you must work with a qualified professional to determine what that should be. However, make sure that you’re not opting for a tax minimization strategy by default when it could end up costing you big a few years from now. I’ve had enough clients get stuck in their businesses for 3, 5, even 10 years beyond when they intended to sell because they’d been utilizing a tax minimization strategy the entire time and found out that that made them unattractive acquisition targets. Don’t let that be you.

Guest Post: How to Effectively Communicate With Your Potential Patients Online

It’s guest post week again and today is all about those medical professionals out there that want to attract new patients online. We’ll hear from the folks over at My Digital Dentistry about how to effectively communicate with your potential patients online, so that you can fill all of your appointment slots and have a great relationship with your patients. Here they are: Continue Reading

A New Perspective on Networking That Will Be Especially Exciting for Introverts

Today we’re going to talk about networking but, I promise you, this discussion is going to look different than most of the networking discussions you’ve had before and it will be especially helpful for those of you out there who DESPISE networking…especially you introverts. Continue Reading

Sponsored Post: Use These Tips to Organize Your Home Office on a Budget

Keeping your home office organized is an important contribution to your productivity and peace of mind. It can be quite frustrating and time-consuming when you are always having to stop to search for what you need. Getting your office organized does not need to cost an arm and a leg.  A few simple tips can help you without depleting your bank account. Continue Reading

The Only Two Ways to Grow Your Business’ Bottom Line

When I work with business owners on developing and implementing successful growth strategies, most of the entrepreneurs I work with are unable to succeed in achieving the growth they want for their businesses because they initially fall into one of two camps: either their ideas for how to grow are way too broad or they’re way too specific. Just like almost everything else, when developing a growth strategy you need to find that sweet spot.

Those whose ideas are too broad basically try anything and everything but don’t do any of it well while those who are too specific get obsessed with specific tactics instead of working on a solid strategy. This video will help you understand your options for growth so that you can find the right amount of focus for your growth strategy. If you decide to work through it, grab the worksheet at the bottom of the blog post for just $1 to help you through it.

Jumping in now: the first thing that you need to understand about developing a growth strategy is that it comes down to a simple decision tree that starts with a set of binary choices. There are really only two ways to grow your business: either you sell more stuff or you make more on each unit of stuff you sell. In business terms, you either expand the market or improve your margins. Let’s say you want to sell more stuff – the next binary choice you have to make is whether you’ll sell more of the same stuff or you’ll also some different stuff. Again, the business translation would be you either expand your market share or you diversify your offerings. Again, let’s say you’ve chosen to sell more of the same stuff: you have another binary choice: sell that stuff to more people, aka expand your customer base, or sell more of that stuff to the people you already sell it to, aka increase the lifetime value of each of your customers.

That just takes you down one path on the decision tree but you can take a look at the decision tree by purchasing the worksheet below. 

The first step to developing a solid growth strategy, is to explore the options on this decision tree and determine which expansion options would provide the highest ROI for your business. You can do that by grabbing the worksheet below for just $1 and walking through the process for your own business. The point of this exercise is to provide some structure for those who are overwhelmed by a too-broad view of growth strategy and to pull those who are tangled up in tactics back out to the basics of strategy. You should land on 1-2 of the highest potential expansion options and you can then build a strategy and define implementation tactics around those options.

Click here to purchase the Growth Strategy Identification Worksheet.

And don’t forget about the Business GPS program and Coaching Packages if you need additional help taking your company to the next level.