Small-business owners see silver lining in the recession

(ARA) – The current gloomy economic conditions contain some good news for the small-business sector.

According to a recent survey conducted by Citibank, some small-business owners and managers are finding a silver lining in the current recession, seeing more high-quality candidates available for hire, rising employee retention rates and gains in market share.

As a business owner, how can you take advantage of these small-business opportunities and make them work for your business? Small-business expert Dan Goodgame recently moderated a robust roundtable of small-business owners, who offer these three tips:

1. Take advantage of the talent pool
As a result of the recession, there is larger pool of highly qualified and highly skilled employees available for hire. Many who may not have considered working for a small firm are now more open to the idea. Take time to interview a variety of job candidates on a regular basis, even if you don’t have a current opening at the company. This technique can help you fill an opening as soon as it is created with the best possible talent, and avoid some of the costs – typically 50 to 200 percent of the employee’s annual salary – normally associated with staff turnover.

2. Retain your best employees
Holding on to your best employees is of course crucial to building your business, and it’s going to get harder as the economy starts growing again. First, create a two-way communication system that allows employees, on a regular basis, to give and receive feedback on their performance and the performance of their peers and managers. Second, create an employee recognition and rewards program that extends beyond compensation and bonus. Be creative with the rewards program; provide employees with paid time off to volunteer at their organization of choice. Provide recognition with “surprise” thank you gift certificates to a local cafe or restaurant. The “thank you” does not have to be a big dollar amount – just the recognition can go a long way.

3. Seek feedback from customers as you seek referrals
With marketing budgets pinched, many business owners are taking a fresh look at ways to gain new sales by winning referrals from existing customers. One of the most effective methods is to seek feedback from existing customers on the quality of your products and services, and on your pricing. Tell customers directly that you want to do whatever is necessary so that they will be so pleased that they will recommend your company to their friends and colleagues. Listen to their suggestions on how you can improve. And when you’ve followed through on their advice, check back with them. If you know of a good prospect, ask your existing customers if they know her, and can introduce you to her and recommend you. One advantage of this approach is that it helps you get the feedback that you need to improve your service, even as it brings in new business.

The small-business sector typically leads the U.S. economy out of recession, and that pattern seems to be holding up in the current downturn. Leveraging tips such as these will be key to surviving the toughest business conditions in more than half a century.

Courtesy of ARAcontent

Buying a home or making green home improvements? Don’t miss out on these tax credits

(ARA) – A wide range of tax law changes over the last year will result in considerable savings for millions of Americans on their 2009 federal tax returns. Homebuyers and homeowners have some of the most to gain from the changes.  

Understanding the qualifications for home-related credits can be confusing and intimidating. Jessi Dolmage, spokeswoman for 2nd Story Software, the makers of TaxACT, breaks them down.

“If you’ve never owned or haven’t owned a principal residence during the three years prior to the purchase date, you may qualify for the First-Time Homebuyer Credit. The purchase date must fall after April 8, 2009 and before May 1, 2010, with closing to take place before July 1, 2010. It’s equal to 10 percent of the purchase price, up to a maximum of $8,000. You only have to repay the money if the home ceases to be your primary residence or is sold within three years of purchase,” says Dolmage.

Property cannot be acquired from a relative, and married taxpayers must both qualify as first-time homebuyers if filing jointly. The credit can be claimed on a 2009 return or an amended 2008 return.

The Worker, Homeownership and Business Assistance Act of 2009 extended the credit’s closing date from Nov. 30, 2009, to April 30, 2010, and added rules for homes purchased after Nov. 6, 2009, including:

* You must be at least 18 on the purchase date (only one spouse must be 18) and cannot be claimed as a dependent.
* Purchase price cannot exceed $800,000.
* If the sale doesn’t close by April 30, 2010, you may still qualify if there’s a binding contract to purchase by that date. The sale must close before July 1, 2010, and the credit cannot be claimed before the closing date.

Purchase date and modified adjusted gross income (MAGI) determine credit phase out. If the purchase date was before Nov. 7, 2009, full credit is available to those with an MAGI up to $75,000 ($150,000 for joint filers). If you have an MAGI between $75,000 and $95,000 ($150,000 and $170,000 for joint filers), you’re eligible for reduced credit. Higher incomes do not qualify.

If the purchase date is after Nov. 6, 2009, full credit is available to those with an MAGI of up to $125,000 ($225,000 for joint filers). If your MAGI falls between $125,000 and $145,000 ($225,000 and $245,000 for joint filers), you could receive a reduced credit. Higher incomes don’t qualify.

“Current homeowners looking for a different or new home may also qualify for the First-Time Homebuyer Credit,” Dolmage says. “The Worker, Homeownership and Business Assistance Act modified the credit to allow for up to $6,500 if you purchase a replacement home before April 30, 2010. You must have lived in the same principal residence for a five-consecutive-year period during the eight-year period that ends on the purchase date of the replacement home.”

In addition:

* You must buy, or enter into a binding contract to buy, a principal residence after Nov. 6, 2009, and before May 1, 2010, and close on it before July 1, 2010.
* The credit phases out for those with an MAGI between $125,000 and $145,000 ($225,000 and $245,000 for joint filers).
* 2009 purchases must be claimed on a 2009 return; 2010 purchases can be claimed on a 2009 or 2010 return.

All homeowners can claim tax credits for green improvements. The Residential Energy Property Credit is worth 30 percent, up to $1,500, for improvements such as adding insulation or installing energy-efficient windows, doors, or heating and air conditioning systems. Bigger improvements involving alternative energy equipment, like solar hot water heaters, geothermal heat pumps and wind turbines can be claimed under the Residential Energy Efficiency Property Credit. This credit is equal to 30 percent of the cost of the qualified property, with no limit on the maximum amount of the credit available.

New tax laws also include breaks for children, college expenses, new vehicles, unemployment and several other areas. Information about all 2009 tax law changes can be found at www.IRS.gov.

“You can see exactly how the changes will affect your 2009 taxes with TaxACT Free Federal Edition,” Dolmage adds.”  With TaxACT, all taxpayers can prepare, print and e-file their IRS return for free. Go to www.TaxACT.com to get started.”

Courtesy of ARAcontent