Basics of Small Business: How to Avoid 8 Traps! These are the slides used during the BDPA Cincinnati chapter program meeting held in March 2011. The presentation was made by Clarence Larcarte.

1. Basics of Small Business: How to Avoid 8 Traps!

2. CINCINNATI CHAPTERMonthly Program Meeting Agenda 6:00am - 7:30pm Networking…………………..………..All Welcome & Intro……………………...Clarence Larcarte, VP of Member Services About BDPA………………………..…Patrick Nelson, Corporate Advisory Chair The Basics of Business…………….. Clarence Larcarte, VP of Member Services Panel Discussion-------------------------Panelists Volunteer Opportunities and Event Calendar Advancing Careers from the Classroom to the Boardroom

3. 8 Traps (Mistakes) to Avoid Lack of Business Planning Poor Market Research Starting Business for the Wrong Reason Bad Money Management Not Changing with Markets or Customer Needs Doing Everything By Yourself Lack of discipline Ignoring yourself or your family

5. Set specific, measurable, attainable, realistic and time-bound goals

6. Calculate accurately, the initial investment needed, AND running costs

7. Assess labor and work-force needs

8. Get legal!!

10. How prospects buy the products you will sell

11. Where will you find your prospects

12. How you will reach your customers

14. Good physical health and mental endurance

15. Perseverance, an ability to motivate yourself, bounce back from failures

16. Good people skills, and relationship skills

18. Making good hiring/firing and rewarding decisions

19. Use technology to manage your financial life (Quickbooks, Mint.com, TurboTax)

21. Learn about technological innovations and advances

22. Get new product ideas

23. Keep a tab on laws and regulations governing your business

25. Give you more time for performing crucial ($$$ making) business activities

27. Accountant

28. Book-keeper

29. Lawyer

30. Financial Planner**Own the outcome!

32. Stay abreast of laws, political issues and market factors affecting your business

34. Eat well, relax enough and exercise

35. Establish a pattern of rhythm and rest

36. Establish business boundaries, especially if you are home-based

38. Panel Discussion Advancing Careers from the Classroom to the Boardroom

40. Small business health care tax credit – This credit is available to small employers that pay at least half the premiums for single health insurance coverage for their employees. It is specifically targeted to help small businesses and tax-exempt organizations that primarily employ moderate- and lower-income workers.

41. General business credit for employers – Eligible small businesses are able to use their general business credits to offset both their regular income tax liability and their alternative minimum tax in 2010.

42. Higher expensing/depreciation limits – For tax years beginning in 2010 and 2011, small businesses can expense up to $500,000 of the first $2 million of certain business property placed in service during the year.

43. Depreciation limits on business vehicles – The total depreciation deduction for a passenger automobile used in a business and first placed in service in 2010 is increased to $11,060. The maximum deduction for a truck or van used in a business and first placed in service in 2010 is increased to $11,160.

44. 50- or 100-percent bonus depreciation – Businesses that acquire and place qualified property into service after Sept. 8, 2010, can now claim a depreciation allowance of 100 percent of the cost of the property. The property must be placed in service before Jan. 1, 2012, (Jan. 1, 2013, in the case of certain longer-lived and transportation property). Businesses that acquired qualified property during 2010 on or before Sept. 8, 2010, can claim a depreciation allowance of 50 percent of the cost of the property. The 50 percent allowance is in addition to regular depreciation under MACRS for the year. Quick Hitters—Tax Law Changes that Affect Your $$