SCORE SE Michigan provides free resources for small business owners and entrepreneurs to help local economies grow and thrive.
All SCORE resources are provided by a network of volunteers who are either retired or current Business Owners, Corporate Executives, and Managers.
The SCORE difference is our volunteers. They believe in Small Businesses and how important their growth and success is to our local communities. Our Volunteers have lived, worked, and raised their families in Michigan. They understand the importance of small businesses and know that entrepreneurial success helps our local communities succeed.
Our key areas of Free Small Business assistance are
- 1 on 1 Business Mentoring for Business Owners
- Business Workshops
- Event Speakers
- Referrals and Connections for Success
Our free 1 on 1 Mentoring is what many of our volunteers enjoy.
Understanding the individual needs and issues that each business owner may have gives our volunteers the opportunity to share knowledge and hands-on experience that they have from their own business experience.
Sharing knowledge builds community and provides a collaborative environment. As the new year begins our mentors have a few insights to help others prepare for the upcoming business year.
Why We Volunteer by Mike Marchand, SCORE SE Michigan Chapter Chair and Certified Mentor
It’s our privilege to support small business clients through mentorship and resources, whether they are starting a new business or growing an existing business. The passion, creativity, and resilience of these entrepreneurs inspire us every day.
Our mission is to support and strengthen all small businesses because through the strength and sustainability of small businesses, local communities thrive.
Financial Performance Monitoring Made Easy by Mick Shimamura, Retired Deloitte Audit Partner, Chapter Vice - Chair and SCORE Mentor
Budget-to-actual analysis is a classic accounting technique, but to be effective, it requires creating a detailed annual budget. This can be challenging for many small business owners because it requires time, forecasting skills, and disciplined assumption development.
A simple and effective alternative is maintaining a rolling twelve-month income statement. Each month, replace the oldest month with the newest, so you always see a full year of performance. This provides an ongoing picture of revenue and expenses without needing a formal budget.
Expected and unexpected events, whether recurring or nonrecurring, such as a new customer, a supply delay, or a large expense, will naturally appear as visible breaks in the trend lines. Owners can compare how the most recent month behaves relative to earlier months to quickly assess impacts of operational changes and identify new trends that require immediate attention.
This method is easy to implement, practical to maintain, and provides actionable insight.
Bookkeeping Matters by David Broner, retired Business Owner, Chapter Executive Advisor and SCORE Mentor
Our mentoring across a variety of businesses allows us to see that those entrepreneurs who know their numbers have an easier time making business decisions.
Why would I want to keep up with my numbers?
Having those numbers available will allow you to identify and track the Key Financial Indicators that are crucial for having a profitable business.
Knowing and tracking gross margins, accounts payable and general expenses are a few of the metrics that you might choose to have at your fingertips. This requires constantly updated financial records.
Another benefit of knowing your numbers is being able to establish a realistic budget. You will have the numbers and spending percentages that are needed to plan ahead.
Hiring Your First Employee by Patricia Marmon, retired HR Vice President and SCORE Mentor
Hiring your first employee is a big step for any small business. It is not uncommon for business owners to rely on family and friends during the early stages of their startup, but the time may come where you need to start reaching out to the greater community in search of new employees with specific areas of expertise and talent.
There are many resources available for advertising your opening. When sifting through the avalanche of information in modern day recruiting, the first step is to consider the skills and experience required for your new role and let that guide where you advertise. Here are some suggestions:
- Traditional job boards such as Indeed and ZipRecruiter are high on volume, but watch for costs
- LinkedIn for sourcing candidates and Facebook community groups for advertising
- Veterans’ groups
- Local Chambers of Commerce
- Michigan Rehabilitation Services (MRS) for the differently abled
- 2nd chance programs through the state: https://www.michigan.gov/msi/about/sce
- Schools/Colleges/Universities - especially those that have programs that complement your type of business
- Tap into Gen Z with Handshake - https://joinhandshake.com If you’re considering hiring an intern, this could be a good option
- If you’re looking for contract service workers, consider Instawork at https://instawork.com think of it as the “Uber” for temporary contract workers)
- Hiring a Virtual Assistant may also be an option, depending upon your business and financial situation. Make sure you research the VA company carefully before signing up.
Year End Tax Strategies from Mary McGough, CPA and SCORE Mentor
It is that time of year again when we start to review strategies that may reduce our tax bill.
Below are some things to consider when planning year end activities.
Evaluate your business structure
Many businesses start as a sole proprietorship because it is easy and affordable. As your business grows and evolves, another structure may be more appropriate (LLC, S-Corp, etc.). A change may provide tax savings. January 1st is the best time to change the business structure.
Consider income deferral or acceleration
If your business is a cash basis taxpayer, it might be possible to reduce the current year tax bill by deferring income. On the other hand, it may be beneficial to bring more income into the current year if large gains are expected next year. Be sure to leverage last minute deductions.
Make contributions to your retirement accounts
As a self-employed business owner, the contributions you make to your retirement plan may reduce your taxable income. This is a great way to invest in your future and reduce your tax liability at the same time, so consider making the maximum contribution allowed.
Set up a retirement savings plan
Attracting workers continues to be a problem for small business owners. A retirement plan could help make your company more attractive to employees while enabling you to save money for yourself. Contributions you make for yourself and on behalf of your employees may be tax-deductible depending on the type of plan. Small businesses may also get a tax credit to help defray the cost of starting certain retirement plans.
Capital expenditures
If you plan to make significant purchases or investments, discuss depreciation options and how they could impact your taxes.
Review estimated tax payments
Review your quarterly tax estimates to make sure they are on track to avoid underpayment penalties.
Staying informed about these changes is crucial for effective small business tax planning. Your CPA or tax adviser should be well-versed in these updates. So, it’s important to meet with your advisor at least annually to assure you are minimizing your tax liability. The list above is for informational purposes only. Everyone’s tax situation is different so the list above does not apply to all business owners.
If these thoughts interest you in either volunteering to share your expertise or to learn from our mentors, visit the SCORE SE Michigan website at www.score.org/semichigan to access our free resources such as request a mentor, browse the online library, or attend a workshop.