Missouri Business Portal Aims to Help Missourians Start Small Businesses
Governor Matt Blunt and Secretary of State Robin Carnahan have launched a new Web site to make it easier for Missourians to start their own small businesses. Blunt and Carnahan worked together to create the Missouri Business Portal, a one-stop access point for business owners to interact with support agencies within state government.
"The Missouri Business Portal is a terrific resource for businesses large and small," said Carnahan. "As a small business owner myself, I know how valuable it will be in helping business owners access the resources they need from state government."
The Missouri Business Portal is a one-stop-shop that connects small business owners with state government resources based on their inquiries and interests. The Web site provides tools to help Missourians start small businesses and maintain reporting requirements with state government.
"Prior to the portal, businesses had to go to several different Web sites in order to comply with all the requirements of registering and licensing their business," said Chris Bouchard, Associate State Director of the Missouri Small Business Development Centers. Businesses can now find most of the information they need on one site, and future enhancements to the portal will continue to make it easier to do business in Missouri.
The Missouri Business Portal is organized into four main categories for users:
- Research - Allows entrepreneurs to research their business ideas and obtain assistance in writing business plans.
- Register - Guides business owners through the processes and contact points to complete all of the required registration forms for the state. The section also provides Internet links to cities and counties to assist businesses in complying with local requirements.
- Maintain - Provides information that helps with filings, taxes, employee issues and steps required to end a business.
- Resources - Helps businesses maintain growth by providing access to information about raising capital, market development, employee concerns and environmental compliance.
The Missouri Business Portal is a multi-agency collaboration between the Secretary of State, the Department of Economic Development, Department of Labor and Industrial Relations, Department of Revenue, the Office of Administration and the Small Business Development Centers to offer assistance to businesses throughout their lifecycle.
To access the Missouri Business Portal visit www.business.mo.gov
IRS Roundup
Is it tax time already?
Having a profitable business is a good thing – obviously. As tax season gets rolling and your tax documents accumulate, let's look at some actions you can take now to help maintain profitability.
Last month I met with a client who had turned a nice profit on a small business he recently started. Having a profitable business is good, so I worked through his previous year's tax return to see how his costs stacked up. I was more than a little surprised to see he only had four different expenses to operate his business.
He operated his business out of his home, yet had no expenses listed for maintaining a home office. The Internal Revenue Service has become more reasonable in allowing home office expenses as long as you follow IRS rules.
He used a vehicle in his business, yet chose not to use the standard mileage deduction the IRS allows for legitimate business use of a vehicle. Each year the IRS establishes a set cost-per-mile designed to reflect the actual cost to operate a vehicle so you don't have to track individual expenses like gas, depreciation, etc. For 2006, the figure is 44.5 cents per mile. (For 2007, the rate is 48.5 cents per mile.)
I questioned my client about his tax forms and noted some expenses I would have expected to see but were not listed. He captured his gas cost for the vehicle, but no repair and maintenance or depreciation. He had no expenses listed for his phone use, which was extensive in his business. He purchased various supplies to run his business, yet did not list these costs as business expenses. Fortunately, he listed his advertising expense.
He explained that he didn't know anything about taxes and turned all the paperwork over to a professional to prepare. It was then I understood his tax professional only had the information the client offered and used that to prepare the taxes. Since the client didn't provide any additional expenses to list, they never showed up on the form.
When I am asked about a tax question, I refer clients to the professionals in my community who make it their jobs to fully understand taxes and accounting issues that can affect businesses. But here's a tip you can use to help your tax professional: the more you understand how the IRS treats business income and expenses, the better you can work as a partner with your tax professional.
The IRS offers a wealth of information to help you better understand taxes, and much of it is on a Web site for businesses at www.irs.gov 
. Or, you can phone the IRS "Customer Service for Business" phone number at 1-800-829-4933. I phoned this number to test it, and after working through a few automated menus, I talked to a very helpful representative. He suggested small businesses just starting out should consider getting the following publications:
- 334 - Tax Guide for Small Business
- 583 - Starting a Business and Keeping Records
- 535 - Business Expenses
- 463 - Travel, Entertainment, Gift and Car Expenses
He pointed out that many people who operate small businesses as sole proprietors don't understand the self-employment tax or how to fill out a Schedule C form. He said IRS representatives are happy to work with callers and help them understand the forms. They are also happy to mail you the publications listed above (and others) free of charge to help you better understand taxes. Don't forget this year (and only this year) you can take a special deduction for the telephone excise tax that is being refunded through the IRS. Businesses may be able to use a special formula that uses 2 months (April and September 2006 bills), instead of all 41 months comprising the refund period.
Do yourself a favor and learn a little bit more about how business taxes work so you can "partner" with your tax professional at tax time. Finally, remember that the accounting professionals in your community are able to advise you on an ongoing basis of modifications to the tax laws and the best way to make changes in your business to take advantage of those modifications. They can help you in many more ways than just filling out tax forms. The money you invest in them for their expert advice can pay dividends throughout the year, not just at tax time.
Your local Small Business Development Center is happy to help you with your small business success. Appointments may be made for free business consultations on small business issues by contacting the SBDC office near you.
Related Items:
- Car and Truck Deduction
- Home Office Deduction
- Telephone Tax Refund
- IRS Small Business Tax Resource Guide
Focus on HR
Drafting quality players
While achieving superior employee performance is greatly dependent on how they are managed, it's also important to be disciplined in your hiring decisions. By metaphorical example, superior coaching is crucial to building a winning NFL team. First-round draft choices can also provide the nucleus to build a winning team. But since the NFL apportions draft choices inversely to the won-lost record, how do some teams manage to be "winners" year after year?! The answer is they invest significant effort/resources in scouting the lower draft ranks of players to find "coachable" attributes necessary to continually renew themselves.
After many years of entrepreneurial experience, here are some "drafting" keys I've found in building/maintaining a winning team!
Know what employee traits you are looking for
Every person comes to the workplace with a unique set of attributes/talents which best suits them to certain roles. (i.e. In football, athletes with speed, agility, and "good hands" make great receivers, but lousy linemen.)
In business, the same thing goes in finding the right employee to fit a given position type. i.e. The personal traits of a good accountant are much different from the traits of a good salesperson.
Therefore, "drafting" for the "right fit" requires clearly identifying which personal traits are important to success in that job before you start looking for a new hire to fill it! To augment your own intuition, ask existing employees what personal traits they think are best for the job.
Hire for traits, train for skills
While it's terrific to hire an experienced employee who is "ready to play" that doesn't usually happen. Like first-round draft choices, people with perfect "traits" and excellent skills for a particular position rarely walk in off of the street! One of the lessons I learned was that "experience" was less important than a person's traits. Why? Because you can teach skills, but you can't change personal traits. (Trying to fit square pegs into round holes wastes valuable time/energy!)
Don't skimp on screening
In the same way that winning football teams thoroughly scout/test/analyze low-round draft choices, a rigorous interview process is critical to evaluating candidates. At our company every position (regardless of level) is predefined by a list of "must's" and "preferred's" qualifications. ("Must's" are non-negotiable and "preferred's" are a bonus.)
I believe it's the employer's moral responsibility to carefully evaluate every candidate so as to avoid the mutual trauma of subsequently firing hiring mistakes. (Since the employer has the yea/nay decision power, hiring mistakes are almost always the employer's fault.) So regardless of job urgency never skimp on screening.
Use indirect interviewing to discover personal traits
The predictive quality of job interviews largely depends on asking "clueless" questions wherein the manner of response is more important than the content! If you are interviewing for a waitperson position, don't ask a direct question like "How do you handle tough customers?" — it will only reveal what the applicant thinks you want to hear.
Instead, take an indirect approach and listen carefully with your "third ear." (e.g., "Describe the single worst customer experience you ever had.")
Carefully listening to how the applicant responds to clueless questions reveals much more of their personal traits than direct questions.
Never settle for good enough
Finally avoid falling into the "good enough" trap by hiring someone who doesn't meet your predefined "must's" but does solve the short-term need. It's my experience that you're always better off running short-handed (while continuing to look for the right person) than making a "square peg-round hole" hire — the equivalent of trading today's headache for tomorrow's upset stomach!
Summary
Nobody's perfect, and a disciplined screening process will not prevent all hiring mistakes. However, if your goal is to be in the Super Bowl every year, I've found the foregoing keys increase the odds of success!
This complete article is online at www.missouribusiness.net/docs/drafting.asp
This article was originally authored by Dino Cortopassi in Oct. 1996. He notes, "While I originally wrote this column 10 years ago, it's equally true today!" It was republished in the Dec. 2006 issue of LaTrattoria, a newsletter for independent restaurateurs. Cortopassi is co-owner of Stanislaus Food Products of Modesto, CA. This article is used with permission of Stanislaus.
Are you your own human resources expert?
A new training series, HR for Small Businesses: Avoiding the Landmines, is for you.
See www.missouribusiness.net/news/training_hr_030907.asp for details.
Business Going Green
Shining the light on fluorescent light bulb recycling
Did you know that every fluorescent light bulb contains mercury vapor that is released if the bulb is broken?
Did you know that less than 20 percent of florescent bulbs sold in Missouri are recovered for recycling? (The national average is 24 percent and the national goal is 75 percent).
Are you in compliance with Missouri regulations that require spent fluorescent light bulbs to be recycled with a certified lamp recycler or treated as hazardous waste?
If you answered "No" to any of these questions, please read on!
More than 3,000 tons of Missouri's fluorescent lamps are improperly disposed in landfills each year, releasing nearly 500 pounds of mercury into the environment, according to Marie Steinwachs, director of University of Missouri Extension Environmental Assistance Center (EAC).
"Mercury is highly toxic in very small quantities – especially to children and babies," says Steinwachs. "It can cause permanent damage to nervous systems, vision, hearing and learning ability."
According to Missouri regulations, bulbs generated from businesses and institutions are considered hazardous waste and must be recycled or treated as hazardous waste. A program at EAC has worked to raise the recycling rate by establishing more convenient and affordable recycling options for businesses, says Steinwachs. With a grant from the Missouri Department of Natural resources, the EAC developed a network of sheltered workshops and recycling centers that accept fluorescent bulbs for a small recycling fee. The income earned by the sheltered workshops helps to employ disabled people at meaningful jobs.
Most of the fluorescent bulb recycling sites will accept bulbs by appointment only. Several sites provide pick up services from business or institutions. Businesses are charged a per-bulb fee and many types of bulbs are accepted (including all fluorescents, mercury vapor, and sodium lights). Businesses are encouraged to store spent bulbs in the boxes that new bulbs are packed in to prevent breakage until ready to send to a recycling site. All bulbs collected through this program are recycled at HTR-Group, a certified bulb recycling center in Lake Ozark. Businesses will receive a certificate of recycling to show they are in compliance with fluorescent bulb regulations.
For a list of participating collection sites, Missouri regulations and other information go to the Missouri Statewide Fluorescent Lamp Recycling Project Web site at www.htr-group.com/recycle/. Contact the Environmental Assistance Center at MOEAC@missouri.edu or 573-882-5011.
At Your Service
Profile: Steve Holt
Steve Holt, business development specialist in Chillicothe, received B.S. and M.S. degrees in agricultural economics from the University of Missouri. He also received a MBA from University of Missouri. Following a stint in the Army, he worked in several industries, serving as general manager both of a milking equipment business and a food company that sold to top 100 retailers. His most significant previous work experience was 11 years with Butler Manufacturing in positions from Market Research Analyst to VP of Manufacturing.
In 1998, he returned to Missouri to run his family farm in Trenton. He joined the Northwest Missouri State University Small Business Development Center in 2005, where he is director of the Chillicothe SBDC.
Get to know Steve in the following Q&A.
Q. What's the most rewarding part of working at the SBDC?
A. I would say it's working with the clients and watching them progress. Ten percent of our clients start new businesses, so it's great to watch their development.
Q. Who were some of your more unique customers?
A. I've worked with quite the range of businesses from coffee shops to health food stores to auto parts companies. I've also helped an attorney expand his business and helped an IT business with a buyout.
Q. What unique challenges are there working in a rural area?
A. There are not many people with a strong finance background. We work hard to upgrade financial knowledge for both existing and new businesses.
Q. What are the benefits of working in a rural area?
A. Community involvement is a big benefit. I feel connected to the area, even when I just leave my office to walk down to get a cup of coffee at the local shop. In a small community, there's also a lot of networking and willingness to help each other out.
Q. What advice can you offer to those starting out?
A. I encourage my clients to look at the market. Make sure it is large enough to sufficiently support the business idea. You can have a great idea, but the market size has to be appropriate.
Q. Why should people come to MO SBDC?
A. We can guide someone through the planning process. We have expertise; we know what questions to ask. We can help from A to Z.
Steve assists small business owners in north-central Missouri by providing educational opportunities and counseling services on topics related to owning and managing a business. Contact Steve at sbdchill@greenhills.net or phone 660-646-6920.
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