THE OVERNIGHT CONSULTANT, CHAPTER 3 Organizing and Managing the Business Presented by Ian Hannah

Introduction n Financial management n Human resources n Administration and office management n Legal counsel n Marketing and sales n Public relations n Planning

Proprietorship or Incorporation?  Corporations provide legal protection of personal assets.  Cost money to set up.  Double taxation.  Need board of directors.  Proprietorships suited for single person businesses.

“Doing Business As” Form n Must appear in a newspaper or business journal. n Use your own name if it is known in the industry. n Create a name that describes the business. n Keep personal and professional finances separate.

Managing Money n Accounts payable. n Payroll & withholding taxes. n Quarterly tax estimates. n Insurance. (Health, Life, Professional Liability, Office Equipment.)

Hire an accountant n Financial advice. n Saves time. n Provides monthly reports. n Save money by doing some work yourself. n Develop relationship with a bank.

Management Controls n Compare actual performance with estimates and previous periods. n Identify trends. n Feedback improves ability to estimate costs.

Maintain Paper Trail n IRS audit always a possibility. n Protection from Lawsuits. n Make detailed notes on receipts. n Record events in daybook. n Be careful with electronic organizers.

Working From Home n Reduces overhead. n Tax deduction. (Take pictures.) n Keep work areas separate from personal space.

Hiring and Human Resources n Employees contain hidden costs. n Employees available when needed. n Subcontracting avoids payroll taxes. n Subcontracting can be scaled to business demand. n Electronic mail has made communication easier.

Getting Messages n Answering machine. n Voice mail. n Pager. n Cellular phone. n Car phone.

Organization & Equipment n Filing system. n Phone logs and time sheets. n Equipment - copier, computer, fax machine.

Legal Issues n Have legal council review client contracts. (contacts disappear.) n Have legal council review agreements with subcontractors. (jointly developed products, noncompete agreements.)

Summary n Sole proprietorship. n Work from home. n Secure professional help. n Subcontract labor. n Keep organized.