7 steps to boost your income

The trouble with New Year’s resolutions is their limited shelflife. The main reason for such lack of commitment is the impossibly difficult demands that most New Year’s promises place on well-meaning but naïve pledgers.

When it comes to your nursery in 2008, there’s no need to make ambitious but unattainable promises. Here are seven easy steps you can take to simplify your life, lower expenses and pump up your net income in the New Year.

1. Slash costs for keeping in touch.

As a busy nursery owner, you have to keep yourself reachable. In that department, you’ve never had it so good. With your cell phone, pager, broadband Internet access and regular telephone service, you’re never far from anyone you want to reach (or anyone who wants to reach you).

Unfortunately, you’re probably paying a lot more than you realize for all that techno-communication. If you’re like most business owners, you added individual services one at a time, paying top dollar for each. One way to lower costs is to take advantage of bundled plans offered by most providers. Contact your primary provider to see the available bundled plans. In addition to saving you money, dealing with one company will greatly simplify paying bills.

2. Give your accountant a pay cut.

Sure, you hate paperwork and recordkeeping. Don’t we all? Nevertheless, if you find yourself scrambling to locate receipts and other records at tax time every year, you’re probably costing yourself some real money. “When clients present me with a shoebox full of unsorted papers, I have to charge them for the hours it takes to make sense of them,” said CPA Tom Normoyle in Huntingdon Valley, Pa. “A simple filing system that separates records of different types is one sure way to reduce my fee.”

Normoyle said that even the simplest of systems -- one file for income and one for expenses -- can save money. Separating expense files into categories such as payroll, office supplies, capital purchases and taxes can really make a difference in how much time it takes to prepare tax returns.

And remember, accountants like things to balance. So, reconcile your bank statements each month. This reduces fees by eliminating time spent tracking down unaccounted-for outstanding items.

3. Save money even while you’re paying bills.

No one enjoys paying bills. That’s why we sometimes postpone that job to the point of risking late fees and blemishes on our credit reports. Paying bills may never be fun, but new technology has made the task quicker, easier and a little less costly.

Nearly all banks are online these days and most offer free (or almost free) online bill paying. Once you sign up and choose a password, you log on to the bank’s Web site where you enter the payee’s name and address, phone number and the amount to be paid. The bank takes over from there, either by mailing a check to the payee or by making an electronic money transfer.

You save precious time, the cost of postage, buying checks and trips to the post office. What are you waiting for?

4. Slay the credit card monster.

Life as we know it today wouldn’t be possible without credit. However, credit has its dark side as well. Credit cards have been compared to drugs; they offer short-term pleasure in exchange for long-term pain. A pocket full of credit cards can sweep you up in the illusion that you have more money than you actually have.

Saying, “charge it” is quick and easy, but that habit, uncontrolled, can lead you down the road to financial oblivion. Once you become hooked on credit cards, it can be painfully difficult (and sometimes, impossible) to free yourself.

The more credit cards you carry around, the more likely you are to dig your self into a bottomless financial pit. Equally important, if your wallet is lost or stolen, the risks of identity theft skyrocket. Many business owners carry as many as a dozen credit cards. That’s just plain foolish. Two or three is plenty.

If your wallet is bulging with plastic, relieve yourself of that hazardous burden. Begin by deciding which cards you need to keep. Perhaps you have a “reward” card and a low-rate card for purchases you can’t pay off in full. If you keep one or two separate cards for business, hang on to them.

Cancel the rest on a controlled basis, perhaps one each month or two. Cancel the newest ones first. Once you get yourself down to the fewest cards you need, your wallet will be bulging with the money saved instead of all those plastic squares.

5. Dig yourself out from under all that paper.

With all the paper you slog through for business purposes, you don’t need to add to the burden by hanging on to reams of paper because “you might need it some day.” Most of it will never see the light of day.

If that sounds like you, organizing guru Maria Gracia suggests these guidelines:

* Use the 4 D's: Do it. Delay it (File it in an action file or archive file). Delegate it. Dump it.

* Open mail over a wastebasket. Immediately get rid of mail you don't need, such as catalogs or advertising offers. Then, use the 4-D system on what’s left.

* Use e-mail. Most e-mail and attachments can be stored on your computer. Just beware of virtual clutter. The same rules for avoiding paper pileups apply to computer files.

What to keep:

* Keep credit card and ATM receipts only until your monthly statement arrives.

* Hang on to monthly bank, brokerage and credit card statements until you get the year-end one. Then, dump the rest.

* Keep year-end statements and tax returns for seven years.

* You’ll need to keep some papers indefinitely -- insurance policies still in effect, medical records, home improvement receipts and mortgage papers. Keep major appliance warranties until they expire.

6. Get rid of insurance you don’t need.

The cost of insurance is a major burden. That’s why it’s important to cut through the smog generated by the insurance industry. In addition to business liability insurance, there are only five types that you must have: Life, health, disability (as long as you’re working), homeowners and auto. For most people, the rest are a waste of money.

Life insurance on your kids is a classic example of insurance you don’t need. How about cancer insurance? Some insurance consultants say that it never makes sense to insure against a single disease. Buy cancer insurance and you’ll probably die from a stroke or get run over by a bus.

Never agree to credit life insurance or to car rental insurance. Your auto policy or credit card will probably cover it. Once you’ve pared things down to those five types, look into consolidating the remaining policies with one company. That’s often a money saver.

7. Grab your share of the best publicity of all -- free publicity.

Advertising professionals know (but usually won’t admit) that free publicity is generally more effective than the best paid ads. Most of your prospective customers will be far more receptive to a simple news item about your nursery than to a typical advertisement.

So, how do you go about getting free publicity? First, you need to learn what makes a good story. Then you need to learn how to sell it local media.

Your news item doesn’t have to be of monumental importance to gain a free spot in the media, it just has to be “newsworthy.” That simply means there is something about your or your nursery that the public might find interesting.

Here are a few newsworthy story ideas:

* Employee news. Many neighborhood papers run columns dedicated to residents. Such things as hirings, promotions and special awards are ideal candidates for submissions to these columns. Another area of interest is employees who have unusual hobbies or who have performed public service.

* Changes in your business. Most newspapers are anxious to run newsworthy items about local businesses. Any time you make a change, whether it’s an increase in the size of your staff, remodeling of your premises or a move to a new location, you have an opportunity for some free publicity.

* Your own activities and accomplishments. Don’t be shy when it comes to publicity for you or your nursery. If you’re involved in community service, invited to speak to a local service club, have an unusual hobby, operate your nursery in an unusual way or participate in any events that have news potential, don’t hesitate to grab a spot on the free publicity bandwagon.

To get free publicity, you have to seek it actively. The media isn’t going to come looking for you. While it isn’t necessary to have a “contact” in the local press, it doesn’t hurt.

For more: Maria Gracia, www.getorganizednow.com.

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- William J. Lynott

William J. Lynott is a business writer, (215) 886-3646; lynott@verizon.net.