When sales slow down small business owners generally put their marketing hat on, try a new idea or two and hope for the best. I've been a small business marketing consultant for more than two decades and have come into businesses after owners have searched for answers to their marketing questions. When the subject of doing some marketing research comes up, they usually dismiss it as too expensive and/or of questionable value. And, actually, for most small businesses, I'd agree.
But there is a type of marketing research you can do that I've seen work time and time again: talking to your customers. Let's call it ?homework? and not marketing research?that'll make it a bit easier for you to consider doing.
You probably have several ideas regarding what needs to be done to crank sales back up. However, you don't have the time or money to try everything. Doing some homework first will help point you in the right direction.
"Homework" in this case is going out and talking with your customers, and in some cases, prospects. My experience is that when an owner starts to feel like his or her sales should be higher but aren't sure how to change things, their marketing is starting to wear out. But which part?!
That is, their marketing is falling out of sync with their target market. When's the last time you changed your positioning? Message? Distribution channel? If it's been a while for any or all of those elements, your marketing may be aimed at where your customers were, not where they now are.
How to do your homework? Sit down either in person or on the telephone and ask your customers questions. About them. Don't ask how you can sell more to them. Ask about them. Remember, they don't care about you, they care about them. In doing so you will get clues to how you can be of more service to them and, as a result, how you can sell more to them.
Ask:
? What's going on in their market, with their customers? What kind of pressures or opportunities are they faced with?
? What are they doing about all that? What are their plans or focus for this year? Downsizing? On a growth spurt?
? Is anything happening specifically around how they use your product or service?
? How can a vendor like you help them right now?
? What criteria did they use when selecting you as their vendor?
? How would they expect to hear or learn about a new vendor such as you?
? What is important to them, right now, about your product or service?
? How would they suggest you let more people like them know about your company?
Best case, your customers will tell you how to change your current marketing approach. Worst case, they will give you clues that will suggest what changes can be made. Ask. Listen. You will be pleasantly surprised with what you learn and the changes you can make.
If so, maybe you've been wondering, "Does it matter what time of year I form a corporation?"
From a legal standpoint, any time is the best time. The sooner you incorporate, the sooner you make the move from the world of unlimited liability to the world of limited liability.
From a tax savings standpoint, any time is the best time. The sooner you incorporate, the sooner you will start putting more money in your own pocket and less in Uncle Sam's.
But from a tax reporting standpoint, there is one time of year that stands out as best: New Year's Day.
Why is that?
Assuming you have a sole proprietorship that is up and running as of 1/1 and assuming you then incorporate that existing entity on any date other than 1/1, you face the possibility of filing not one but two business income tax returns for that year.
Here's an example to clarify this important point.
Let's say you've been operating your sole proprietorship for a few years, and in early 2009 you decide to incorporate. In January you get around to starting the paperwork, but life gets in the way and you finally get it done in late February. By the time your state processes the Articles of Incorporation, the start date of your new corporation is March 1.
For 2009, you must file a Schedule C for the period January 1 through February 28, when your business was a Sole Proprietorship. And you must also file a corporate income tax return for March 1 through December 31.
Maybe that's no big deal. Maybe you enjoy filing one business income tax return so much, filing a second one doesn't bother you. And it may be that the inconvenience of filing two tax returns in 2009 is far outweighed by the legal and tax advantages of incorporating.
Keep in mind that 2009 will be the only year you have to do this "double duty". In 2010 you will only file the corporate income tax return.
But if you are thinking about incorporating, the best time to do it, from a tax paperwork standpoint, is January 1. Only then do you have a "clean break" from the old sole proprietorship to the new corporation.
This timing issue can also be relevant if you decide to make the switch late in the year. If the effective date of the incorporation is November 15, you will have to file a Schedule C for January 1 through November 14, and a corporate return for November 15 through December 31. In that scenario, you should ask yourself, "Do the benefits of incorporating outweigh the convenience of waiting until January 1?"
So before you decide when to incorporate, take a moment to reflect on the tax reporting consequences of incorporating on January 1 vs. any other date.
Sometimes it may make sense to wait a few weeks (as in the second example), and sometimes it makes sense to "do it now", especially when January 1 is nearby.
Both Hamilton Wallace & Wayne M Davies are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Hamilton Wallace has sinced written about articles on various topics from Marketing, Six Sigma and Marketing Strategies. Hamilton Wallace is a small business marketing consultant. He is an expert in direct response marketing, including sponsored search, SEO, direct mail, message and story, and in creating simplified, effective marketing solutions for small businesses.. Hamilton Wallace's top article generates over 14800 views. to your Favourites.
Wayne M Davies has sinced written about articles on various topics from . Wayne M. Davies is author of 3 best-selling ebooks on tax reduction strategies for small business owners and the self-employed. For a free copy of his Special Report "How To Instantly Double Your Deductions", visit. Wayne M Davies's top article . to your Favourites.