SBA: Manage your business

It’s important to set clear goals for your marketing plan, like increasing sales by a certain percent. John and Kelly’s auto shop is just getting started, so they want to build a solid customer base. They aim to serve at least a certain number of new customers each month. John and Kelly purchase advertising space on the websites of two local TV news stations, as well as the local newspaper’s website. They also purchase ad time on a local radio station. The advertising costs have been accounted for in the marketing plan. Additionally, they set a date to review their marketing plan. At that time, they’ll compare marketing costs to the revenue it generated to determine if they got a positive return on investment (ROI). John and Kelly have a marketing plan that they believe will attract new customers and help grow their business. Choose how you’ll accept payments + The kinds of payments you accept can impact your marketing and sales, as well as your bottom line. Accept forms of payments that are cost effective, secure, and provide a positive experience for your customers. You’ll need a business bank account no matter what kinds of payment you choose. Credit cards To accept credit and debit cards, you’ll need either a merchant services account with a bank or an account with an independent payment processing company. You’ll pay small processing fees for each credit or debit card transaction, plus costs for setting up any necessary equipment. Accepting credit and debit cards exposes you to the risk of fraud, but most vendors provide a certain level of protection for your business. Make sure that you use an EMV (Europay, MasterCard, and Visa) chip reader, which will limit both fraud and your liability. Checks You only need a business bank account to accept checks. You’ll want to create a policy for accepting checks to help you avoid bad or fraudulent checks. Standard practices include only taking checks from well-known or in-state banks, or requiring checks be only for the exact amount owed. You could also use a third party service to help verify the quality of the check. If a check bounces, your options to get the final payment will vary depending on your location. Some states require businesses to mail a registered letter and allow a designated waiting period to lapse before further action is taken. To get payment for a bounced check, you could end up in small claims court or using a collection agency. Cash Many small businesses operate as “cash only” merchants because it’s fast, easy, and inexpensive. If you accept cash, remember that large sums of cash can add to accounting time and come with an additional security risk. You’ll want a secure way to hold your cash, like a register and a safe. There are special reporting requirements for cash. The IRS requires you to report if your business gets more than $10,000 in cash, or a cash equivalent, from one buyer as a result of a single transaction or two or more related transactions. Online payments If you sell your product or service online, you could accept payment through your website with an online payment service. Online payment services typically accept credit and debit cards in addition to other popular online money transfer services. You’ll pay fees to in order to accept payments online, just like accepting credit cards in a physical location.