Back ups

There are different kinds

And they are ALL important

1. First is a back up for your computer / servers. You may have an automated back up system - but from time to time - you do need to check your protocol (once we found out that our power cord was defective, another time we realized that we needed more memory, another time we found out that the system was only doing a partial back up.

2. Next is try to do a test restore.  This is very very very important. If you are using proprietary software, you will need that soft ware to restore your back up.  Dell computers want dell parts etc etc.  Never wait for the actual crisis before you try to troubleshoot this.  And NEVER NEVER NEVER listen to your IT person who will reassure you that everything will work fine.  Make him or her demonstrate it to you.  

3. Keep one back up at another location. And change it at least once a month.  If you have a web site, make sure that it is functioning well BEFORE this master back up. The reason, a hacker might have introduced some new files and now you will have a corrupted back up too :(

4. Cell phones - we rarely have any phone numbers memorized. Imagine if there was an earthquake / storm/ hurricane. You loose power. Your cell phone dies. And you have no way to charge it.  That is why you need a PAPER back up of at least one or two important phone numbers. We have an out of state contact phone number for all our team members.

5. Laptops  - I have realized that they die every third year. So I try to buy a new one about 2.5 yrs into my old laptop, recreate everything the way I want to and just keep it as a back up. So if and when my personal lap top fails - I am ready to move on :)

IT "hostage" situations...

An IT person usually stay in one job for less than 3 years. Accept this. And be prepared.. I realized this the hard way.

If you can afford it, have 2 per team - the rationale is that if one person leaves, you will have someone who will know your net work. Most of us do not have this "luxury"

As a small business owner, there are things you HAVE to know.

a. Insist on getting a detailed diagram of your net work.
b. Make sure that you have a list of all the important passwords.  All individual computers have an administrator password. Make sure you know this password.
c. If your business owns a web site, it is important to know the company this is registered with. And make sure that you have access to the email address that you use for these functions
d. All software has licenses. Make sure that you know where these are kept.
e. Every 3 months, go through this check list with your IT person.
f. If you purchase software, have a designated place to store these.
g. Have a place to store all kinds of cables and power cords too.

If you fail to do these things it can cost you very large amounts of money.

Pay roll

Everyone is scared about making mistakes with payroll taxes

So most start ups hire expensive firms to initiate their payroll

We did the same

Now there are lots of online companies that provide the same services for a lot less money

We use the Bank of America online payroll services - cost came down from $250 to $30 !!!

Excellent customer service. And it takes me the same amount of time as it used to take for our previous company.

Taxes Vs Loans

Most small business owners have been 'brain washed" into thinking that getting a business loan is better than paying taxes  (the argument is that you could claim a tax deduction for the loan interest you are paying)

And the hope is that the investment you made in your business will silently appreciate.

A win win situation

I really think it is time we rethink this argument. 

Before you get a loan, check the total interest payment and also the cost of the loan including the prepayment penalties.  Divide this cost over the number of years you are planning to pay off this loan. You may be very surprised at the numbers you get.  Also do not forget the "peace of mind" factor :)

At times it will be cheaper to pay the taxes and avoid all the hassle and heart ache you may get with this additional long term obligation.

If you really pause to think, you are paying "taxes"  masquerading as "interest" to a bank.  You, the person who is actually earning this money did not get anything at all 

This is my personal opinion - please talk to you tax advisors and accountants before any decision.

Be Happy, Don't worry ...

We cannot make objective decisions when our mind is filled with anger or worry
So everyday, try to have 10 minutes of quiet time.
Check to see how you are feeling
Identify the things that are causing you heart ache
Try to resolve them

It becomes a lot easier to make objective decisions when your mind is free and happy :)