Business Question

[Cow Poke]

Ha! I know that type. Wouldn't be surprised if he fired the secretary too, because she'd seen him get his. Folks who put ego in front of their business are everywhere.

Actually, this jerk had a routine -- he would tell a new hire secretary, "I'll start you off at $1100 a month, and after a 90 day probationary period, we'll go to something more like a $40,000 / yr salary".

You could COUNT on it, that about day 70 he would find everything she did intolerable, would gripe and complain, pitch fits, and she would resign in tears, never making probation. On and on. Finally, one of the ladies who quit in tears was talking to me because she got another job with one of my good clients (at my recommendation ) and she was bemoaning the fact that the other girls couldn't collect unemployment compensation because they quit, instead of being let go. (long story)

Anyway, I told her about the "hostile workplace" rule, where an employer creates a hostile environment as a means of getting rid of an employee for the purpose of circumventing unemployment compensation. That's EXACTLY what he was doing. The other girls filed a lawsuit, and won!

Had a senior manager try to get me fired because I didn't laugh at one of his jokes once. I'd put up with his incompetence for months, but I'd made sure to document it all, indexing every last bit of it with a business solution.

And that's another important business lesson! Document, document, document!!!!

I inherited his parking spot.

[rogue06]

So, he had his secretary make up the check, and handed it to me. I started out the door (before entering the password) and he said "where are you going?" I said "I'm going to YOUR bank to cash the check, then I'll come back and enter the password".

Years ago a friend of mine (Rick) and I did some work for a mutual acquaintance who paid us with checks that bounced. Over the course of the next six months he gave us a couple more checks that also bounced.

About a two days after getting another of his checks Rick got a call from his sister who happened to work at the bank that this guy used used telling him that this guy had just deposited several thousand dollars into his account. Rick called me and we both rushed to his bank and cashed our checks. That evening we both got calls from this clown who was livid because he no longer had enough money in his account to pay for business supplies that he urgently needed.

So I told him, "let me get this straight. In other words you once again planned on giving us bogus checks but we were able to cash them and you're mad about that. Is that about right?" After literally making some sputtering sounds the last thing I ever heard from him was the sound of the phone being slammed down on the other end.

[Cow Poke]

Years ago a friend of mine (Rick) and I did some work for a mutual acquaintance who paid us with checks that bounced. Over the course of the next six months he gave us a couple more checks that also bounced.

About a two days after getting another of his checks Rick got a call from his sister who happened to work at the bank that this guy used used telling him that this guy had just deposited several thousand dollars into his account. Rick called me and we both rushed to his bank and cashed our checks. That evening we both got calls from this clown who was livid because he no longer had enough money in his account to pay for business supplies that he urgently needed.

So I told him, "let me get this straight. In other words you once again planned on giving us bogus checks but we were able to cash them and you're mad about that. Is that about right?" After literally making some sputtering sounds the last thing I ever heard from him was the sound of the phone being slammed down on the other end.

It always pays to have a friend at the bank!

I've done this a couple of times --- asked a clerk, "hey, whenever so-and-so comes in to make a deposit, could you give me a call?"

She probably could have gotten fired for this, but one lady told me "go ahead and endorse your check, fill out a debit slip, and I'll hang onto it til he makes his deposit".

(That's the same lady who, after YEARS of me cashing my police payroll check at her window, didn't recognize me one day when I showed up in jeans and a t-shirt, and asked for ID --- when I called her by name and expressed surprise that she didn't recognize me, she YELLED (in a crowded bank on a Friday afternoon) "OH... Officer CP!!! I didn't recognize you with your CLOTHES ON!!!!)

[rogue06]

"OH... Officer CP!!! I didn't recognize you with your CLOTHES ON!!!!)

[DesertBerean]

[DesertBerean]

I had a business consulting company in Chicago back in the 90s.

Quick rule of thumb: Charge $ per hour what you want to make in k$ per year.

Because 40 hours per week by 50 weeks per year is 2000 hours, and half of your hours spent will be un-billable ... or un-collectable ... making for 1000 billable hours, working full time. If you're posting fixed rates, you do the math yourself just as if you were billing hourly, based on how many hours it will take to do the job.

Good luck, Laura!

we actually had a formula like that at the base. We usually figured hours per year after taking out weekends and federal holidays (not optional for fed budgets) and hours of non-direct work etc...stuff like that.

[Cow Poke]

I actually had a client - my best client - who referred me to another client on the same floor of their building. I went and introduced myself to this new potential client, and gave them an overview of what I thought I could do for them, given their current needs. They had been told they needed WAY more (networking, server, etc) than they actually needed, and I came up with a better plan. They liked it, and hired me on the spot, asking me to come in the following Tuesday to get started.

As I was walking down the hallway toward the elevator, the owner came running after me and said, "hey, wait --- we never talked about your hourly rate". I thought real fast -- my BEST client was getting a discount because of the volume of work I was doing for them, and I thought they might have compared notes, so I said, "I'll do your stuff for $90 / hour".

The man looked unhappy and said, "well, that won't work -- our line item in our budget for computer consulting is $120 / hour --- you'll just have to adjust!"

I smiled all the way home. And they turned out to be an EXCELLENT client.

[Teallaura]

I had a business consulting company in Chicago back in the 90s.

Quick rule of thumb: Charge $ per hour what you want to make in k$ per year.

Because 40 hours per week by 50 weeks per year is 2000 hours, and half of your hours spent will be un-billable ... or un-collectable ... making for 1000 billable hours, working full time. If you're posting fixed rates, you do the math yourself just as if you were billing hourly, based on how many hours it will take to do the job.

Good luck, Laura!

Thanks!

My area isn't large and I'm dubious that there is enough business to make it a full time endeavor - but time is something I have right now and I may as well see what I can make of it.

There's a little collection of log cabins and historic buildings that are used as shops near here. Under new management - otherwise I wouldn't consider it at all - and I stopped by today. The rentals are reasonable and no contract. They have a restaurant moving in (they were working on the building while I was there) which would mean more traffic. It's located on 231 so car traffic is ample - it's the stopping that has been in question but I was pleased with what I saw of what the new management was doing to improve the location and get new business in. It has some issues - buildings are poorly heated and that's a big thing in winter, even the mild one we are having. But they plan to renegotiate the gas contract (it needs it) and by April it would be a non-issue. I saw the electric bill for last month on the size unit I'd be considering and all told running expense would probably be in the $175/mnt range. That's seven full length scarves just to break even.

BUT, it's a physical location, has the potential for decent traffic, would give me a working base both for my shop and any consulting I did.

[Teallaura]

...
(That's the same lady who, after YEARS of me cashing my police payroll check at her window, didn't recognize me one day when I showed up in jeans and a t-shirt, and asked for ID --- when I called her by name and expressed surprise that she didn't recognize me, she YELLED (in a crowded bank on a Friday afternoon) "OH... Officer CP!!! I didn't recognize you with your CLOTHES ON!!!!)

Meh, I get it all the time. I teach water aerobics....




























































Most of my students have never seen me in anything but a bathing suit!

[Cow Poke]

Meanwhile, many years ago (maybe even with version 1) I used a cheap ($29) product called "My Invoices & Estimates". They're still around, and it was all I needed to keep track of invoicing, sales tax, income --- and to print out reports for my taxes - both federal (schedule C) and sales.

That's another thing you need to consider --- do you want to use an alias and register your business name, and operate as a sole proprietorship, or incorporate.... probably just a sole proprietorship, I would guess. And do you need a sales tax number from your state?

If you end up collecting sales tax, be SURE to keep up with it, and file monthly or quarterly (depending on your state) because I know several people who got in LOTS of trouble with the Comptroller's office for not collecting and paying their sales tax.

In Texas, a lot of services are not taxable, but goods are -- and some installation is.

[Teallaura]

Meanwhile, many years ago (maybe even with version 1) I used a cheap ($29) product called "My Invoices & Estimates". They're still around, and it was all I needed to keep track of invoicing, sales tax, income --- and to print out reports for my taxes - both federal (schedule C) and sales.

That's another thing you need to consider --- do you want to use an alias and register your business name, and operate as a sole proprietorship, or incorporate.... probably just a sole proprietorship, I would guess. And do you need a sales tax number from your state?

If you end up collecting sales tax, be SURE to keep up with it, and file monthly or quarterly (depending on your state) because I know several people who got in LOTS of trouble with the Comptroller's office for not collecting and paying their sales tax.

In Texas, a lot of services are not taxable, but goods are -- and some installation is.

[Cow Poke]

I think, starting off, you should just go with a sole proprietorship, and register a business name with your county. The business name (DBA) will let you open a checking account in the business name, and keep finances separate. Helps later with taxes. Eventually, you'll probably start receiving 1099s from clients, and the BEST thing is...........

there are LOTS of legitimate write-offs you can use for taxes!!!!!! The computers and equipment you use in your business, office expenses, rent and utilities on office space...... Schedule C is your FRIEND!!!!

[Teallaura]

[Cow Poke]

Oh, and while we're at it ... I bought a NEATDESK SCANNER which helps me scan in my receipts and expenses and categorize them for taxes --- at the end of the year, I print out my annual expense summary, and it REALLY helps with taxes. What used to be a NIGHTMARE is now a BREEZE.

AND, I used to over-report my income and under-report my expenses because I was afraid of an IRS audit ---- but this way, I can MAXIMIZE my expenses, because I have scanned images of them, and can print them out anytime they're needed, without keeping a shoebox full of paper!

(And you can deduct the NeatDesk Scanner as office equipment!)

[Teallaura]

Whoa - first I need to actually make enough to afford business equipment. Manila folders work just fine to start with.

Actually, a cheap scanner would be nice...

No, bad girl! Bad!











































I spent $70 on yarn and needles today. IF I made only long scarves that would be $375 in inventory so...







































Hi, I'm Teal and I'm a yarn addict....