Tag: advice

Reflections on 2021 – Plans for 2022

The end of one year and the beginning of another is the perfect time to pause and savor your successes from the year that is ending. Celebrate both your business and your personal accomplishments from 2021, month by month. Reflections on the 2021 goals that you achieved can also be the genesis for planning what you want to achieve during 2022. You know what they say…a goal without a plan is just a dream. 

Whether you are expanding, launching something new or maintaining the status quo, 2022 will be different than 2021. That means setting new goals and making a new plan. Starting is always the hardest part, so begin by identifying one overarching change you want to achieve by the end of the year. Want more customers, higher cash flow, or a new worker? Focus on achieving that one change, then break it down into manageable pieces.

Change doesn’t just happen; you need a plan to get it done. Follow these three planning tips to achieve your goals in 2022:

  • Gather the Numbers

Quantify all the applicable aspects of your goals. This task will require some research and could entail making estimates and assumptions. For example, how many more customers do you want? Can you quantify the additional income and cost of serving more customers? What about how much a new worker would cost and how much additional income they could generate? The more numbers you can nail down, the better.

  • Be Realistic

Keep market conditions and your resource capacity in mind when setting growth and other goals. It’s important to be realistic to ensure that your goals are achievable. Setting unrealistic objectives is not only discouraging, but it can also result in allocating resources – aka time and money – on activities that are unlikely to succeed. Better to target those resources on realistic, achievable goals.

  • Adjust As Needed

No matter how well you research the numbers and focus on what’s realistic, any view of future events is imperfect, as we’ve seen with COVID-19. Market conditions and other factors that you depended on when setting your goals could change. Periodically assess progress on meeting your objectives. Are you on track? Why or why not? Based on those answers, you may need to make some adjustments.

The end of 2021 is the perfect time to savor your successes and to plan for what you want to achieve in 2022. Don’t let your goals turn into the dreams you never achieved. Establish a plan for 2022 and turn those dreams into your reality. 

How to Respond to an IRS Notice

You’re flipping through the mail when you see it. An envelope with an IRS return address. OMG! What’s this about? Sure, you’re nervous but don’t stick it in a drawer. No matter what, it’s information that needs your attention. Whether you rip it open immediately or wait until you’ve sat down, you eventually see it – a Notice from the IRS with potential unwelcome news.

Now what? Your IRS Notice may be long and difficult to decipher, but it explains the reason they are contacting you and instructions on how to handle the issue. Maybe information reported by a third party does not match your return or you made a math error. The IRS might just be asking for clarifying information. 

Regardless, let’s simplify how to respond with a little Q&A:

  • Why did the IRS send me a Notice?

The IRS sends Notices to taxpayers who have a balance due, are due a different refund than originally reported, their return has been changed, or additional information is needed. Notices may also communicate the need to verify taxpayer identity or a delay in processing the return. Details are in the Notice. Read it carefully.

  • How should I respond?

Typically, you only need to respond if you don’t agree with the information in the Notice, if the IRS requested additional information, or if you have a balance due. If the income or payment information reported to the IRS doesn’t match your tax return, check to see if you made a mistake. It happens. Just pay the amount due, or at least as much as you can.

  • What if I don’t agree?

Sometimes the IRS makes a mistake or does not understand the information on your tax return. If that’s the case, make copies of any schedules or other clarifying documentation. Complete the Notice Response Form and include any necessary explanations. Don’t assume that the IRS can understand your documents without an explanation.

  • When should I respond?

IRS Notices require you to respond by a specific date. There are two main reasons you’ll want to meet that deadline – to minimize the accrual of any additional interest and penalty charges, and to preserve your appeal rights if you don’t agree. Keep copies of all Notices and your response (with support documents) for future reference.

Getting an IRS Notice is nerve-wracking but ignoring it will only make it worse. Read the Notice carefully and respond with an explanation by the due date if you don’t agree. Made a mistake? Pay the amount due, or as much as you can, to reduce additional interest and penalties. When you know what to do, getting a Notice from the IRS won’t make your heart skip a beat.

Want more details? Check out the IRS website.

Six Years in Business – Already?

Just the other day, someone asked me how long ago I started my business. I was surprised to realize that it’s been six years this week! I’ve never regretted the decision to parlay my entrepreneurial spirit and experience into a full-time business. Sure, it’s been a lot of work, but with diligence and good luck, I’ve achieved my goals. 

Anniversaries are milestones worth celebrating, and a time for reflection – to assess progress, identify improvements, and set new goals. Businesses that survive to celebrate many anniversaries and other milestones invest significant time and effort in these four activities:

  • Plan with Your Objective in Mind 

A business plan is a road map to get where you want to go and help to keep your “Eye on The Prize”. Unless you know what you’re reaching for, you can’t grab it. Set your overall objectives and describe the detailed steps to achieve them. Set interim milestones along the way to help measure your progress and keep you motivated.

  • Execute Your Plan

Actively work through the detailed steps in your plan. It’s exhilarating to achieve goals and move forward. Executing your plans also gives you opportunities to get more information. Use new information to adapt your plans and make course corrections. Also listen to how your network receives your message and adjust the wording to get your message across better.

  • Outsource Needs You Can’t Meet

Be realistic about aspects of your business where you do not have the necessary expertise or can’t take the time away from your core business to do it yourself. Legal, accounting, and social media are some areas where engaging an expert can accomplish specialized tasks, free up your time, and prevent you from making costly mistakes.

  • Give to Your Network

Answering general questions in your area of expertise and presenting at workshops gives are ways that you can share knowledge with your network and establish your credibility. Sharing tips and perspective helps to establish your brand and draw people to you and your business. Being generous is often its own reward, over the long run.

The last six years of being in business full-time have been hard work, fun, and rewarding – all at the same time. It takes a lot more than investing in these four activities to be successful. But businesses that invest in planning, executing, outsourcing, and giving back increase the probability that they will enjoy many future anniversaries and milestones.