Hello, week 6!!
Things are HOT at BizWorks! Literally… this week, the air conditioning wasn’t working well, so we meet in the co-working space. I had my WaWa smoothly and was enjoying the change. So, I found the photo-ready best seat and got settled in. Bonnie passed out sweets to each table, which she shared was for not meeting some self-set sales goals – that was fun and unexpected!
While everyone was getting settled in, we realized there wasn’t a trash can. So, knowing that we would really need one once the snack table opened, I voluntarily went to get a trashcan for the “new” space. Besides getting locked into the back hallway… everything went OK. HA! So, here we go:
The first presenter of the evening was Luz Rios from State Farm Insurance. Before she started speaking, she when around and introduced herself and asked each person to tell them about their businesses. She referred to this information numerous times during her talk, associating certain examples that may apply to specific businesses. I could never do that – impressive!
She explained that insurance is for sudden & accidental (not old) occurrences, that insurance is personalized and can actually be written off as a business expense. Good to know! Also, she highlighted that insurance is about the details (even including attorney fess in your premium). Here are a few suggestions she made:
Property (accidental loss, property damage, etc.)
- Protect building
- Content (pens, paper, printer, desk, etc.)
- Coverage (things you don’t do knowingly)
- Negligence (someone sues you)
Becoming an employer
- (Talked more about this later)
- When you hire a sub-contractor, get coverage from their insurance company (their certificate), not from the contractor (it could be counterfeit)
- Also, a sub-contractor should have [their own] insurance!
TWEET: “Take the time now, before it’s too late. It’s better to have it and not need it, than to not have it and need it.” #peaceofmind
To begin his time with us, Bill introduced himself, his background and his time with BizWorks. I liked how much he incorporated personal stories into his informational session.
TWEET: “If you want to learn about small business, you are in the right place [BizWorks].”
These are the highlights I took from his session:
- The difference between an insurance broker and a CPA, is that a CPA helps cash flow (percentage for taxes (fed/state) & estimated income)
- ADVICE: Put tax money away for taxes and don’t touch it.
- Life Insurance: If you don’t think you need it, ask yourself this question, “If my last paycheck was my last paycheck, where would my loved ones be financially?”
- Life insurance is to replace income (money to beneficiaries can be tax free)
- Disability Insurance: “If I’m disabled, my mortgage will be paid.” (Keep 6 months of living in reserve.)
- Back-up plan for your business. Always ask yourself, “What can go wrong?” As a small business owner, think of everything and plan for everything before it happens… always be 6-steps ahead of yourself.
- Retirement planning: invest your knowledge, interest and time (if you use an advisor, you’ll make 3x as much)
- Understand the tax qualification products! Make sure that “Uncle Sam only gets one bite.” NOTE: If you are setting money aside, call Bill and ask him to explain this sentence… it’s a GREAT way to understand retirement funds!!
TWEET: “Be interested enough to take the time to gain the knowledge.”
Although I spent most of my time taking pictures during the break, as always, Minnie Events brought a silence over the room with her yummy snack – tonight she bought macaroni salad, meatballs and fresh fruit.
Last, but not least, Terrance Banks talked with us about how credit scores help, hurt and impact a small business. First, talking about the infamous “FICO score”.
- Payment history 35%
- Amounts owed 30%
- Length of Credit history 15%
- New credit 10%
- Credits used 10%
TIP: Adjust your spam blocker or email setting to allow for receipts o response of emails from the credit reporting agencies.
When it comes to credit companies, it is a good idea to get a copy of your credit from one of the three companies once every quarter: Equifax, Experian and Transunion. Also, it is important to know that any errors found by one company need to be notified to all other agencies
- Disputes must be followed up w/a updated report, free
TWEET: “Any positive action improves your credit report.” #goodcredit
Lastly, he made these suggestions as far as having and keeping good credit:
- Strive to keep a credit card balance under 31% of the credit limit.
- You have to spend money to save money – a good report is a “game”.
- Obtaining debt, it can be good – depending on what you use it for, how to pay it back and how will be obtaining credit help the expansion of your business.
There are pros and cons of using credit repair agencies to reduce debt.
- It can be time consuming, monthly fees, you could do it yourself
- Consolidation (reduction of debt interest)
- (Settlements are for banks, not for people/businesses.)
- Secured credit card – use your own money to build credit.
TWEET: As you grow your business, grow your group of advisors.
Tanner closed the night by saying this notable thought: “No one is going to remember everything we said, but we will remember the professionals that were here… keep their cards and when you need them, call them.”
See you next week!!
Darla, The Imbedded Mogul