The QuickBooks Team Blog

Katrina and Small Biz

It's the one year anniversary of Katrina.

And while New Orleans big businesses are getting back on track, a lot of small businesses are still struggling.

So, the question of the day and maybe also of the year, is what else can we do for them. Especially those that rely on tourists and New Orleans locals, such as the owners of gas stations, restaurants, food marts, Laundromats, souvenir shops, etc.. It's funny, but most people forget that these guys and gals are small business owners too. But its owners like this that keep cities moving .... And they have come back to the city trying to meet the challenges head on --- the challenges such as finding new clients and letting old customers know that they are back in town.

According to the Raw Story, 95% of the 22,000 business, New Orleans have less than a 100 employees, but in most cases we are really talking about very small companies. And these guys are barely hanging on. Louisiana State University recently tried to contact 8,500 of them, and found that 60% of them had their phone disconnected or did not answer their phone. Where did these guys go?

Recently, I was told that if I wanted to make my blog entries successful -- which means read by a lot of people and getting a lot of comments from other bloggers, I had to write something controversial. You know, that really isn't me. I would rather highlight real issues and see if anyone out there can help address them. You don't need to find something controversial to get involved. Or to be concerned about the other guy. Especially the Mom and Pop business owner whose livelihood depends on their business.

What can we/you do help them?

Wanna Wiki response

Dennis recently sent me an email and asked me the status of our WIKI. Great question. To be honest, we have been wrestling with what topic/area to focus on first. It would be great to get feedback too on where you think we should start. The other challenge is how to make it really easy to use. Most of our users are small business owners who don't have a lot of time to monkey around trying to figure out how to use new software or a new website. There are some nice and easy to use Wiki's out there, such as PBWiki or WIKIHOW. I really am not comfortable launching anything that doesn't at least past our  sniff test, which usually includes a lot of our beta testers. These are QuickBooks and Quicken users who know us so well, they are not afraid to tell it like it is  -- and give us constructive feedback. So Dennis and Co., where should we start? What are some good models to use? I have looked at Media Wiki and it is -- not the most user friendly thing I have seen. But hey, we are all learning.

Let me konw what you think.

From our brothers and sisters in Quicken

Our brothers and sisters in arms recently came out with an interesting product to help you keep track of your medical history and insurance info in one place, Quicken® Medical Expense Manager. It helps you easily track expenses, reconcile bills, etc. It has gotten some really interesting  and postiive reviews (and I am not just saying this 'cause I am an Intuit employee). And one thing that is worth a good read is a recent article in Business Week that talked about the guy who came up with the idea for the product. It is a moving and powerful story (see attached). How Dan Robinson, an Intuit engineer was dealing with the stress of his son having an serious illness and ... all the medical expenses. And I think we can all agree that medical expenses never come at the right time, but it is even more difficult to deal with them when a member of your family is sick. Dan's story reminds all managers how important it is to listen to their employees -- those who are on the front line -- for good ideas. What are your employees saying to you? What are your customers saying to you. It can't hurt to remind yourself everyday to listen carefully to what is being said and to observe closely what is going on around you. If you do, you might just come up with an award winning product like Dan.
The QuickBooks Online Team salutes Dan. And so do members of my family who have been using Quicken's Medical Expense Manager product a lot these days! Thanks, Dan.

What State Should I Incorporate In?

Laws and fees governing corporations can vary from state to state. While you are able to form a corporation in any state you choose, most of our customers choose to form their corporation in the state in which they are conducting business. This is typically the most simple and cost effective way to operate your business for the following reasons:

Any state that you do business in will require you to file a "Foreign Qualification" if you are not incorporated there, costing additional fees and paperwork. (e.g. If you form a corporation in California, but wish to do business in Arizona, Arizona will require that you Foreign Qualify).

If you form a corporation in one state and do business in another, you could subject your business to taxation in both states. Many states will tax a corporation that exists in their state, even if it is not doing business there.

Special Considerations for Delaware and Nevada:

There are certain circumstances that could make it beneficial to incorporate in a state other than your home state. If you intend to do business in several different states or if your home state has complex laws or high tax rates and filing fees, you may want to consider forming your business in another state. Delaware and Nevada are commonly recognized as states that are attractive to businesses.

Delaware is recognized as having modern and flexible corporate laws, a business friendly government, and a customer service oriented staff that can process documents and requests much quicker than other states.

Nevada does not charge a state corporate income tax or a personal income tax and allows for a higher level of privacy for a business and its owner's personal information.

Google, online coupons

This is the next big step in the battle between Yahoo, MSN and Google inthe area of online Maps and localized services. Internet search giant Google is now offering small businesses a free way to offer coupons online. The initiative is aimed primarily at the millions of businesses that don't currently advertise online, and offers them the ability to attract local customers with discounts or special deals.To qualify for Google's new AdWords program, Small Business must have a website. (it is interesting to note that less than 50% of Small Businesses do in fact have a website)

Google has opened up the coupon offer to those without a Web presence. Interested parties need to sign up to apply for a free business listing. In weeks to come, those listings can contain coupons, created by the business owner.

Whatz going on in Poughkeepsie

I recently visited my college, which is located along the Hudson River in Poughkeepsie, New York. SBA Director Steven Preston was also in town and met with the members of the Poughkeepsie Area Chamber of Commerce --- he shared with them some ideas to keep a small business running without incurring a lot of debt and unnecessary costs.

He mentioned that many banks offer SBA loans and that SCORE  and Small Business Development Centers can also  help small busineses that face hardships with taxes, high insurance and benefits costs, government regulation problems, and issues of getting access to capital.

Some key things to consider when trying to get your hands on some capital:

- Be clear what type of financing you need

- Don't forget to write a business plan and be prepared to share it with the bank

- Have a contact at a Small Business Development or SCORE review your plans before you actually sit down with a loan officer. A trusted Uncle is a good person to bounce ideas of off. That's what I did when I opened my bookstore.

- As with any loan, review your own credit report and make sure you have a good relationship with your bank.

And like with any relationship ... if you get rejected, find out why. Make it a learning experience.

Grants, grants.....

Need a grant for your small business?

Try one of these great resources:

The Catalog of Federal Domestic Assistance
Grants.gov
Foundation Grants to Individuals
Small Business Association (which has lots and lots of good stuff)

Good luck....