January 25th, 2012 | 
Author: 
When you look at Apple from purely a corporate performance standpoint all you can say is wow, but we all know that such incredible performance never lasts forever – or can it. Recently, our think tank took a look at the company, and had a rather lengthy discussion on the topic. Perhaps, I might share some of my thoughts with you on this as well.
There was a very decent quickie type article in the Wall Street Journal, accompanied by a nice graph of Apple’s success. The chart is clearly going skyward, and somewhat hyperbolic. Every business CEOs dream, and it is all thanks to good business management, executive leadership, marketing execution, and branding. The article was entitled; “On Apple and Its (Enviable) Problems,” by Yukari Iwatani Kane (featured in the “Heard it on the Street section”) on October 18, 2010.
Okay so, that was some interesting commentary and my hopes are that you will go read that article and then come back to this article so you can better follow along on my comments for Apple’s future strategy. You see, trying to keep control of such rocket-ship growth is going to be tough, but there are avenues, venues, and strategies which can allow Apple to continue their loyal following, and grow it organically in the market place.
Consider if you will that there are many PC and Microsoft based loyalists too, and despite what you might think for every religiously loyal Apple follower there are five who absolutely will not touch the product – can Apple win them over? Perhaps, over time, and those who are hard core against Apple could become their best word-of-mouth referrals in the future – or not, depends on how they play it. Likewise there are huge numbers of Blackberry followers too, who seem to be able to be coaxed into trying the Apple products such as iPhone and iPad.
Even as a non-Apple person myself, I happened into an Apple Retail store, which is Apple’s strategy in taking it to the people, will that work? Well, it might for Apple if they only put them into the right demographic, but it didn’t work so well for Microsoft or Gateway, of course, neither really had a cult-like brand loyalist following like Apple has now.
Apple so far has capitalized on its “road-show” roll-outs of new products, and capturing the product cycle curves of each, at the prescribed inflection points, but now Apple must pick up the pace to continue. Is it possible? Or will even their loyal followers get fatigue, and god-forbid they make a big mistake or a product does not do what it says and they lose all credibility. They’ve had a few recent crisis management fires to put out recently – for instance the signal strength of the border-perimeter antenna of one of their latest products.
Still, if Apple is to break into the main-stream and really sell tons of products while keeping price points high for that currently “stellar brand name” of theirs – they are going to need a consumer financing arm, and that means taking some profits and retained earnings off the table, and taking some risks with “Apple Financing Programs” and Apple Loyalty Card Programs, but in this uncertain economy that could be risky too. Please consider all this.
By: Lance Winslow
About the Author:
Lance Winslow is the Founder of the Online Think Tank, a diverse group of achievers, experts, innovators, entrepreneurs, thinkers, futurists, academics, dreamers, leaders, and general all around brilliant minds. Lance Winslow hopes you’ve enjoyed today’s discussion and topic. http://www.WorldThinkTank.net – Have an important subject to discuss, contact Lance Winslow.
Posted in Business Management | 
Tags: Apple Products, Apple Retail Store, Business Management, Ceos, Follower, Hard Core, Iwatani, Loyalists | 
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Guess what my friends; a new tax law is upon us once again. What seems frustrating for some is but another day at the office for those of us in the business of looking out for new tax laws.
For 2010, there is no Federal Estate Tax but keep in mind that it returns in 2011 with a reduced exemption in the amount of $1 million. It would be advisable to make sure that your estate plan is current. The year 2010 is also the year for converting traditional IRA’s to Roth IRA’s. Should you or shouldn’t you is always the question that needs to be answered. As always with tax and financial planning, the decision depends on many factors (see my article:”Converting Traditional IRA’s to Roth IRA’s”).
Also in 2010, there is a new credit for small employers providing healthcare to its employees. The credit is available to “for profit businesses” as well as for tax exempt entities. The credit to be taken by the for profits is part of the general business credit which makes it subject to income tax due as well as the alternative minimum tax limitations. The credit is calculated by multiplying the lesser of employer provided insurance premiums or the premium limits established by the Health and Human Services Secretary, by 35%. The credit is allowed to the extent that the business’ average compensation is not greater than $50,000.
In fact, the credit is phased-out between $25,000 and $50,000. In addition, the small employer begins a credit phase out between 10 and 25 employees. It is important to note that 5% or more owners of corporations, and 2% or more owners of subchapter S corporations, do not count in the average salary and number of employees computation. In addition, in order to calculate the number o fulltime equivalent employees (FTE’s), the entity divides the total number of hours worked by employees (not including the employee group excluded from the calculation mentioned above) by 2,080 hours.
If there are 15 employees working 25,000 hours in 2010, the calculated number of FTE’s would be 12. What about looking at an example? Suppose that the employer pays 80% of the cost of insurance for employees. The premiums at 80% for 2010 are $20,000. This just happens to agree with HHS’ assessment of premiums for 2010. The average salary for the 15 employees for 2010 is $30,000 (again, not including the employee owner groups mentioned above). The raw credit calculation is $7,000 ($20,000 times 35%). The phase out of the credit is as follows:
$7,000 x 2/12 for number of employees $1,167
$7,000 x $5,000/$25,000 for average wages $1,400
The total credit is then reduced to $4,433 ($7,000-$2,567).
Are we done yet; of course not? Remember, this credit is part of the general business credit and is subject to those limitations as well.
The credit for 2010 through 2013 is 35%. It is raised to 50% after 2013. For tax exempt entities, the credit is calculated the same way. However, the credit percentage is 25% for 2010 through 2013 (as opposed to 35%) and 35% after 2013 (as opposed to 50%). The phase out rules are the same as for profit businesses. From our previous example, the credit is $3,167 ($5,000-$1,833) after substituting 25% for 35%. The good news is that the credit is refundable; which means the rules of the general business credit do not apply.
The tax exempt entity is however, faced to deal with a limitation. This limitation is based on the amount of payroll taxes (federal withholding taxes, plus Medicare tax withheld, and the matching Medicare paid by the employer). If the payroll tax limitation is calculated to be $28,050, the entire credit of $3,167 can be taken. Presumably, IRS will be devising a new form 990 to accommodate taking this credit.
Also in 2010, there is a payroll tax holiday for hiring unemployed workers. For qualified workers hired beginning on March 19, 2010 and ending on December 31, 2010, the matching Social Security payment made by employers is suspended (The OASDI tax at 6.2%). This is true for both profit and not for profit entities. The reduction is claimed on the quarterly 941 form.
There is also a credit for hiring unemployed workers providing they have been on your payroll for a 52 week period. This will mean that the credit is not actually available until 2011. The credit is based on the 6.2% QASDI tax not to exceed $1,000 per qualifying employee. If there is one qualifying employee at $30,000 per year, the OASDI would be $1,860 ($30,000 times 6.2%). In this case, the credit is limited to $1,000. The credit is part of the general business credit and subject to those limitations. This rule also applies to tax exempt entities meaning that there must be a tax liability in order for the credit to be taken (990T). This is different from the health insurance credit available to tax exempt entities on a refundable basis.
Well my friends that is the short of it all. Tax planning takes on a new wrinkle as we move from 2010 into 2011. The time to begin tax planning is right now. Remember, you can do whatever you want, but my way is better.
Ron Piner, CPA
Senior Tax Manager
Saggar & Rosenberg, PC
ronp@sr.cpa.pro
By: Ron Piner
About the Author:
Host of “Better Business”
Saturday mornings at 10ET
WBIS AM 1190
[http://www.wbis1190.com]
Posted in Tax |
Tags: Alternative Minimum Tax, Business Credit, Exempt Entities, Extent, Federal Estate Tax, Financial Planning, Profit Businesses, Roth Ira |
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Think your dentist has trouble telling you just prior to your root canal you will feel a little pinch? Doctors are used to delivering bad news. To counteract this, they become skilled communicators. Business leaders could learn a lot from doctors who deliver bad news. Here is what most doctors (and leaders) should pay attention to when they have something to communicate that is important–and must be understood:
o Create the Right Environment. Most doctors don’t just walk up and drop a bomb. Instead, they examine the environment–invite you into their office if possible–and attempt to create soothing conditions.
o Have Everyone Present that Needs to be There. If you are delivering bad news about a downsizing, have the HR department or consultant who will help them make the transition right next to you.
o Ask What they Know First. This is a good technique to get rumors out of the way. Follow this quickly by telling them you will provide answers to everything you can.
o Ask How Much they Want to Know. Everyone doesn’t want the same information when they get bad news. Some just shrug it off; others insist on details. No two are alike. Ask if they have questions, but if they don’t let them walk out gracefully.
o Share What you Know. Don’t be coy or hide the facts. Explain the reason behind the action. People aren’t dummies; don’t treat them as such.
o Let People Vent. Your role as a leader requires you to accept human emotion–even tragedy–from others in a rational, calming manner.
o Establish a Plan for What Happens Next. Don’t leave them guessing about benefits or anything else. Tell them what will happen. Lay it out for them. Then, stick to your side of the agreement.
For more information see http://www.browninglafrankie.com
Posted in Business News |
Tags: Bomb, Business Leaders, Doctors Pay, Environment, Lot, Root Canal, Skilled Communicators, Transition |
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If you’re trying to figure out how to handle small business accounting jobs and responsibilities for your business there is a lot of information that you need to keep track of. Whether you’re using a piece of software or not to keep track of your financial issues, there are several things that are going to be important. Preparing a general ledger, revenue accounts, balance sheet, and income statement are all crucial parts of small business accounting jobs.
The General Ledger
The first part about using your accounting employment practices effectively is creating a general ledger of accounts. This general ledger is crucial in any accounting careers as it is the first place where debits and credits will take place. Whenever you have expenses that need to be added up or revenue accounts that need to be totaled, the general ledger keeps track of both.
Deciding on the revenue accounts and expense accounts that go into your general ledger is another matter. There are several ways that a business can approach this issue, but the best way is to itemize each revenue stream so that all of the revenue accounts can be seen in a clearly organized manner. For example, some of the revenue accounts that every small business will want to consider having in their general ledger include labor sales or even parts and equipment sales. The basic idea here is that the revenue should be broken down into categories. Creating T-accounts for these revenue accounts if using a manual accounting method is important; software programs will probably have a different method of organization.
The same principle applies to expense accounts, however. Your accounting employment practices should ideally include expense accounts on your general ledger such as supplies expense, payroll expense, freight and delivery expense, and advertising expense among many other possibilities.
Balance Sheet and Income Statement
The balance sheet and income statement are two of the most important financial statements of any business; these show the net worth and profit margins of a company. The balance sheet is composed of asset totals, liability totals as well as owners equity. The general formula that you’re dealing with here in your accounting careers is “Assets – Liabilities = Owners Equity.”
On the balance sheet, the cash balance of the business needs to be recorded along with several other important factors, including inventory, equipment, and any other business furniture that you have. In contrast, liabilities should include your accounts payable transactions, or the money that the business owes such as a bank loan. By subtracting the liabilities from the total assets you should arrive at the total net worth of the business or owners equity.
In contrast, a business’ income statement should be a listing of all expenses and revenues to arrive at the business’ bottom line or profitability. There are several ways that an income statement of a business can be constructed, including the single step or multi-step approach. Even though both of these methods are different, a business should arrive at the same total or bottom line using each one.
As you can see, creating a general ledger consisting of revenue and expense accounts in order to develop your business’ balance income statement and balance sheet is crucial. Whether you are just starting out in your accounting careers using these financial statement methods or you’re thinking about using software to take care of the financial matters of your business, keeping track of the net worth and profitability of a business is absolutely needed.
By: Einar Hakeem
About the Author:
For more information on Accounting Jobs
Posted in Tips for Business Accounting |
Tags: Accounting Practices, Delivery Expense, Employment Practices, General Ledger, Principle, Revenue Stream, Several Ways, Software Programs |
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Periodically, all business owners should conduct a SWOT analysis of their enterprise. This is an identification of the strengths, weaknesses, opportunities and threats that relate to your organisation. One of the main reasons for doing this is that it gives you clear goals to work on to improve your commercial future. But how do you go about doing it?
There is no “set” way to undertake a SWOT analysis. Here are some suggestions to get you going.
Set aside time to do it. I think it is important that the key people in your enterprise focus on this issue at a set time. This will highlight its importance and enable you to make best use of your time. It is best done away from your normal place of work, telephones and e-mail.
Have someone facilitate the process. Someone (who knows what they’re doing) should guide your people through the process. Without structure, the process of analysing your business will become a time-consuming talk-fest that will probably achieve little and frustrate a lot. The person facilitating the process should be skilled at drawing out people’s opinions and making sure that everyone has ample opportunity to express their views. If you can afford it, I recommend that you get someone external to your business. A person who is facilitating the process from within the business may have their own agenda or may get caught up in the politics of the organisation. Also, they may not have the skills I have just mentioned.
Start with a “secret” process. Often the SWOT analysis process commences with a group of people sitting near a whiteboard or flipchart paper and letting the ideas fly. There is nothing wrong with this, but I prefer that each participant in the process writes down their thoughts about the strengths, weaknesses, opportunities and threats prior to the discussions starting. The reason that I favour commencing with a secret process is that you are more likely to get honest views that are not influenced by dominant personalities in a group or pet agendas. You could use a stack of system cards where each idea is written on one card by each person. These cards can then be put in piles of strengths, weaknesses, opportunities and threats. You might like to use different coloured cards for each of the four categories.
Discuss the “secret” contributions. Once you have gone through the “secret” process described above, the facilitator should then permit open discussions about the ideas. But, prior to those discussions starting, there should be some sorting of the cards into like ideas. The facilitator should check with the participants that the groupings are indeed the same idea. Otherwise this might override someone’s valuable opinion. The discussion should be free-flowing, informal but professional and respectful of all opinions. It is the job of the facilitator to keep the discussions on track.
Categorise the points into a small number of important issues. Following the discussions, the ideas for each part of the analysis should be distilled into a short list of important issues. As a general business principle, I am very much in favour of keeping things simple. If you finish up with 45 different points in your SWOT analysis, you will have too many. Try to aim for about three points for the strengths, weaknesses, opportunities and threats (about 12 – 15 in total).
Once you have done all this, you will have your SWOT analysis finished. Now you must act on what you have discussed.
Wishing you easier business.
By: John Jeffreys
About the Author:
John Jeffreys
John Jeffreys wants you, the business owner or manager, to have an easier life. John Jeffreys helps you to achieve this by drawing on his 30 years business experience as a Chartered Accountant and partner in major accounting firms. For instant access to videos, audios and software products, visit http://www.businessease.com.au.
Posted in Business Management |
Tags: E Mail, Enterprise, Flipchart Paper, Fly, Making Sure That Everyone, Participant, Set Time, Swot Analysis |
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There are companies nowadays that stand in between the loan, credit card, or mortgage companies and their debtors. The crux of their duty as they inter meddle in this kind of matter is to both the creditor and the debtor. They foster understanding between their clients and their creditors. The indebted is able to get a total debt relief or a more convenient payment plan while the loan companies will not need to spend money in filling a lawsuit against the defaulting customer.
I will like to ask you one important question: “who are those that felt the impact of the global economic recession most?” Those owing credit card debt or one loan or the other.
Now the global financial crisis rendered a lot of people jobless. Companies downsized, right sized, cut the salaries or wages of employees, declared some staffs or employees redundant e.t.c. In some cases they sacked people. This was a horrible experience for the affected persons and this resulted in mental and emotional torture. Many of those that were affected by this lay-offs or pay reduction exercises were already heavily indebted to either a mortgage or, credit card company. Hence, the need to seek out the solution to their problem of indebtedness.
This is where the debt management companies or firms come in as financial service providing companies that help such individuals to salvage the situation of indebtedness that they have gotten themselves into. These types of financial service firms have been springing up in hoards everywhere with the resultant effect of the indebted person having difficulty in knowing which one will be able to help in delivering excellent debt relief services.
Two of the major things to look for in a debt management company are to ascertain that they are experienced experts in handling debt management issues well and track record of success in most cases.
You are to check with the appropriate body in your locality if such companies are registered with them or if they have the license to operate. In other words, I am saying that you should do your due diligence before you contract the job of your debt management to any company you which to engage.
Hence, you should look out for companies that have been in existence for some years now with qualified experts to attend to your case of indebtedness. Just make sure that you do your findings about the company before you entrust your financial future into their hands.
By: Hameed Akinsanya
About the Author:
The author is an enthusiast in loan and debt related issues, he has great resources to share on debt management.
Posted in Mortgage |
Tags: Credit Card Debt, Creditor, Debt Issues, Debt Management Companies, Debt Relief Services, Debtor, Indebtedness, Staffs |
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