I got $10,000 for my college graduation. Do I have to tell the IRS?
On the Word on Wealth Radio show tonight (www.KPRZ.com and 1210AM San Diego, CA) The Retirement Professor (Marty Schneider) and I discussed the question – If I got $10,000 for my college graduation. Do I have to tell the IRS? The answer may surprise you: NO. Gifts under $14,000 per year do not get reported to the IRS or the state of California. They are not taxable. That’s right – not taxable. Do these gifts need to be in cash? No. Gifts that are excluded from reporting and from tax can be any type of gift valued @ $14,000 or less. The gift can be a partial interest in a...
Read MoreThe Business Model Canvas
The Business Model Canvas Now that we’ve spoken about the Business Idea Canvas, our next tool in line is the Business Model Canvas. This revolutionary tool is a simple, yet powerful method for setting structure to your business idea/new product/new branch of your existing business in order to understand your “business model.” Well, that’s a catchy, often over used term, but what is a business model? Investopedia defines it as: “The plan implemented by a company to generate revenue and make a profit from operations. The model includes the components...
Read MoreThe Big Idea Canvas
The Big Idea Canvas So you have this great idea to start a new product line, to make a new branch in the company or to start a brand new business. Well, does it have potential? That’s where the Big Idea Canvas comes in. The Big Idea Canvas is a very useful tool to analyze any new or planned changes in your business model. It will take you through five main areas to discover your idea’s potential: Pain of the Customer – Who is your customer, what is their pain and how bad do they need your remedy? Potential of the Market – Is this a big enough problem to...
Read More2016: A Year of Innovation
2016: A Year of Innovation Innovation is quite the buzzword these days–and with good reason. In this fast changing, digital era, creative change is constantly happening in the business world. For some, being innovative or creative in a business environment may come easily, but what if you feel like you’re more of the “put your head down and get it done” kind of person? Here’s what Jeffery Dyer, Hal Gregersen and Clayton Christensen have to say. As a result of an extensive study of some of the most innovative entrepreneurs in recent years they share:...
Read MoreInterest Rate Changes: What an Entrepreneur Needs to Know
Interest Rate Changes: What an Entrepreneur Needs to Know We’ve all seen the headlines popping up on our news feeds, in the paper and in friendly conversations. But why should I care about the Fed changing it’s key interest rate? Well, here’s a brief overview of the implications of interest rate changes on your small business. First off, the Fed’s decision to raise rates is a good sign. The Fed will only do this when it strongly believes the economy is very healthy and growing well. In fact, that’s one of the biggest reasons they raise rates. If the economy is expanding too...
Read MoreThe Profit Cycle
The Profit Cycle As a small business owner, investing in your people can sometimes seem far away from the bottom line. In this cycle, shared by Bob Nilsen, former President of Burger King and current CEO of Cafe Rio, the payoff of investment in employee training, morale and well-being is clear. Here’s a quick summary: 1. Invest in your people, helping them become trained and happy 2. Your people will treat your customers well 3. Satisfied customers generate sales 4. Sales generate profits 5. Profits can the be reinvested into your people, your customers, sales...
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