Managing Your Small Business Like A Big Business

How tough is it for a small business to competethan thought possible.
against the bigger corporate businesses out there?Accounting, bookkeeping, taxes, and cash
How hard is it for micro-businesses owners to takemanagement are major issues for every business and
advantage of the same infrastructure opportunities asbecause of the limited cash flow and income of a
corporate America? Despite their size and limitedsmall company; these issues are of particular
funds, small businesses need much of the sameimportance to a small business owner. Yet surprisingly
infrastructure as a major corporation.few small business owners have access to tax and
Running a business, even a micro-business, requiresaccounting advice and guidance from a professional.
more than an idea, a few dollars, and a lot of work.As with all other aspects of managing a small
And no matter the skill, experience, and wisdom of thebusiness, cost is the major limiting factor. But the
owner, a small business requires the same advice andadvice they don't believe they can afford can actually
support of specialists such as attorneys, tax specialists,significantly increase their both their cash flow and their
and business specialists as a major corporation. Theprofitability, not to mention protecting them from
difference between the two isn't in their needs butpotential problems with the IRS.
rather in the resources available to meet those needs.The issue comes down to money. Each of the
Just as a major corporation must analyze and planproblems above require dollars to solve. Attorneys are
their tax strategy, so does a small business. And, justexpensive. Accountants are expensive. Medical
as a major corporation must consult an attorney fromexpenses offer an opportunity to save taxes, yet
time to time to safeguard the company, so must aknowing how to take advantage of the tax code can
small business. Likewise, just as a major corporationbe expensive. Even protecting one's office space and
needs advice and guidance from business specialists,equipment costs money the typical small business
so does a small business.doesn't really have.
How many small business owners can afford anFrankly, most small businesses simply do not have the
attorney every time they need one? Few.funds to protect themselves adequately. Nevertheless,
Consequently, the typical small business owner doesn'tthere is an answer. Joining a small business association
have documents that should be reviewed, reviewed.such as the National Association for the
Nor do they consult with an attorney about potentialSelf-Employed or another similar organization may
changes to their business. Nor, for that matter, do theyprovide the business owner many or even all of these
typically obtain advice about vendor, distributor, orbenefits for no more than the cost of their
employee conflicts or issues. In today's litigation society,membership which is typically only a few hundred
it is imperative for every business owner, no matterdollars a year.
how small the business, to have access to a qualifiedSmall business associations offer their members many
attorney.necessary business benefits, often free of charge. By
In addition to protecting themselves from legalbanding together, these business owners, through the
entanglements, business owners must also protectassociation, have the financial power to acquire goods
their business space and equipment, which for manyand services at tremendous savings. Through
small businesses means their home office. However, ifnegotiated contracts with legal, tax, and accounting
a business owner takes a tax write-off for their homeprofessionals, the association can offer substantial
office, that portion of the home is no longer coveredsavings. Furthermore, if appropriate, the association
by their home owner's insurance since the space hascan hire their own staff of professionals as a free
been converted to commercial use. That portion of theresource for their members. Associations use the
home and the equipment in it are no longer coveredpower of combined funds to help each member's
unless the business owner purchases a special ridercompany perform better and gain access to services
attached to their home owner's policy.the member firm may not be able to afford on their
For most business owners, taking every legitimate taxown.
write off is of primary concern. For many, their taxRather than assume that these necessary but often
savings is a significant portion of their annual "profit."neglected services are out of your financial scope,
Yet, how many small business owners are deductinginvestigate your options. Speak with a representative
100% of their health insurance premiums and theirof a quality, reputable small business association and
non-covered medical expenses? Many believe theysee if they might be able to offer you and your
are getting their full deduction without realizing that withcompany the services you know you need either at a
a properly designed health reimbursementrate you can afford or, even better, as a free benefit
arrangement, they may be able to write off far moreof membership.