According to an article in the February 18^th San Francisco Chronicle, every business with gross receipts over $100,000 has to register with the Board of Equalization by obtaining a use tax account by April 15th, even though the business is not required to hold a seller’s permit or certificate of registration for use tax. The law came into effect in July 2009, but they had no money to advertise the fact so it may come as a surprise to many self-employed consultants like us!

According to the Board of Equalization, you must obtain a use tax account if you meet all of the following conditions:

• Receive at least $100,000 in gross receipts from business operations per calendar year. Note: Gross receipts are the total of all receipts from both in-state and out-of-state business operations
• Are not required to hold a seller’s permit or certificate of registration for use tax (under section 6226 of the Revenue and Taxation Code)
• Are not a holder of a use tax direct payment permit as described in section 7051.3 of the Revenue and Taxation Code
• Are not otherwise registered with the BOE to report use tax

This is to collect use taxes on supplies purchased out of state (usually over the Internet). Since 1930, it’s been up to the business and individual to pay use tax on items purchased out of state even though the vendor does not charge you sales tax.

They are requiring that businesses go back three years (2007-2009) and pay any use taxes that they neglected to pay for those years. However, there may be a penalty for the late 2007 and 2008 taxes and an investigation if the Board feels that there was intent to defraud.

For more info:

• SF Chron article: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/02/18/BUVQ1C33I3.DTL
• BOE FAQs: http://boe.ca.gov/sutax/useTaxRegFAQ.htm#usetax31
• BOE Registration: http://www.boe.ca.gov/info/reg.htm (I was told I had to fill out form BOE-404-A Use Tax Registration and mail it into the local field office).

I just heard last night about a California state proposal to begin to require companies to withhold three percent of all monies paid to 1099 independent contractors.  MANY organizations are opposing this for the following reasons:

• Extra costs for local governments to enforce the withholding
• Extra costs for businesses to administer the withholding
• This is not incremental revenue for the state…just accelerated revenue

These are some good reasons…but I have a few more that impact me personally…

• I use subcontractors and pay at least 10 subcontractor invoices each year…I would need to do accounting/reporting/payment on each of those to the state (monthly? quarterly?)
• This is a double-hit since I would be receiving three percent less on all of my own project invoices, even though I’m already required to pay 70% of my estimated state taxes by June 30th for at least the next two years

Any of you who are independent contractors and 1) pay estimated taxes and/or 2) hire subcontractors/1099 resources will also be impacted.

The California Chamber of Commerce, California Special Districts Association, and others are encouraging anyone in opposition to this proposal to write letters to your California Senators and Assemblyman.  See this link to get the info you need to identify who to write to, including their mailing address.  See a sample letter/template to inspire your creativity (you’ll need to ‘make it your own’ since this is a template for businesses/CEOs to send).

Hearing about this proposal makes me realize that I need to stay much more informed about legislative issues that impact my business…good sources of information for small businesses and independent contractors: California Chamber of Commerce, National Association for the Self-Employed, and National Association of Women Business Owners.   We all need to stay informed!

Recently, in a spurt of ‘abundance thinking’, where I was convinced that 2010 is going to be a MUCH better year than 2009 (I can’t afford to think otherwise, can you?!), I decided to do an inventory of people/resources I can turn to when my workload is too heavy to do it all myself.

Like many fellow consultants, I can perform every function needed to support most client projects myself, but have found it very wise to outsource certain portions of my research projects when I have a heavy client load in order to ensure that my time is spent on the things that are: 1) high value activities, worthy of my $100+ hourly rate and 2) things that only I can do based on my unique talents or the client relationship.

In an effort to streamline the process when I need to turn to other resources, I created a spreadsheet that provides me with a quick glance at the resources I’ve qualified and established relationships with over the past 10 years.  Some of the features of the spreadsheet:

• Every row is a different person/resource
• The first few columns include contact information, notes about the resource and their specialty
• The rest of the columns are categories of resources such as Interviewing, Analysis, Recruiting, Panels/Lists, etc.
• I put an X in each column/category that a given resource can help with

Having this quick reference allows me to rapidly scan a given column when I have the need for support in any given area.  When I meet/qualify new resources, I add them to the spreadsheet, which ensures that I think of them when the need arises.  This saves me a LOT of time and helps me make sure I make the right choice for each project, which helps ensure high quality results for my clients.

Let’s all think ‘abundance’ for 2010 and do a similar inventory of our resources…and if you don’t HAVE back-up resources, be sure to find some…WIC is a great source of qualified people who can partner with you to help in almost any element of your work.

We created a new Women in Consulting member benefit late in 2009, the WIC Mentoring Program. Our successful six-week pilot run ended in mid-October.

The pilot included seven mentees who agreed to help us test the new program. These were WIC members who were interested in the program, but also ready to invest some time (and do some homework!) in order to apply the information we shared with them to help improve various aspects of their businesses.

Desiree Lehrbaum (Lumen Consulting) and I (J. G. Richards Consulting) worked together as a team to mentor the pilot group. We’ll also lead the spring session, which runs from March 24-April 28.

Desiree’s mentoring focus is on marketing and business development of mentees’ businesses. I lead the vision-setting, action planning and “optimizing your business operations” parts of the program.

Once again, the spring session will use a webinar format once a week for an hour, supplemented by a 30 minute 1:1 mentoring call between each mentee and each mentor in the final weeks of the program. We hope to hold our kickoff session as a group, in person.

So how did the pilot go?

I’ll let the Fall, 2009 mentees speak for themselves. Here’s some of their feedback, provided on the anonymous feedback survey we sent them soon after the pilot was over:

“The content was awesome! I can’t imagine it being better.” (This came from a participant during our follow-up call a month after the session ended).

“Not only did I learn specific skills, but I felt more focused on my business and more motivated to actually get past hurdles and get things done.

“A very practical way of approaching the steps of marketing for my business, and identifying and confronting issues holding me back.”

“The program was extremely well thought out, structured into a business development focus with actionable tips and tools to take my thinking to the next level.”

There are more participant quotes I could share, but I think that gives you enough information to know if this is a program that sounds right for you, too.

If you’re interested in the Spring, 2010 WIC Mentoring Program, send me an e-mail at jan@jgichardsresults.com to let me know. We’re finalizing the Spring 2010 Mentoring group soon.

I had the pleasure of attending WIC’s general meeting last Thursday, where Kate Purmal shared insights into how we can make 2010 our best year yet…without breaking our necks! I particularly like that last part!

As part of the networking exercise, everyone was asked to answer the following question:

If you could choose between the following, which would you choose:

• You double your revenue in 2010 but work the same amount of time
• You keep your revenue at the current level but work half the time
• Your revenue and the amount of time you work remain the same but your projects are 2x more satisfying

That was a tough one for me. I want to keep my revenue at the current level and work half the time (I have a young daughter)—but I also want the projects to be 2x more satisfying. An overwhelming amount of Thursday’s attendees voted to double their revenue but work the same amount of time.

What would you choose?

Digging a Little Deeper

If you attended the meeting and would like a copy of Kate’s PowerPoint slides from Thursday’s meeting, email her at kpurmal@gmail.com, and she’ll send them to you. She’s also offering meeting attendees special deals on two of her upcoming workshops, geared to building sales and your thought leadership.  

Sales Boot Camp

If the presentation whet your appetite and you’d like to take your sales to the next level, Kate has an upcoming Sales Boot Camp on February 18, 2010. The one-day workshop is $495 for WIC meeting attendees.

In the workshop, Kate digs deeper on several topics from the WIC meeting:

-       Role-play to perfect the art of creating a “trial balloon” proposal in a single meeting
-       Create a phase 1 or Trojan Horse proposal for your business
-       Develop a phased model for your services
-       Build an action plan to fill your sales pipeline
-       And much more

For more information and to register visit http://www.acteva.com/booking.cfm?bevaid=196613

Thought Leadership Workshop

Kate and her personal guru Mark Levy, author of Accidental Genius, are hosting a one-day intensive workshop where you’ll use private writing and exercises to develop a compelling thought leadership platform. You’ll tap into your creative genius to brainstorm high-level ideas and review them with the group to pick the most compelling and captivating concepts. By developing a platform for thought leadership you gain access to a wider range of potential clients and can charge more for your services.

The workshop is $495 for WIC meeting attendees.

For more information and to register visit http://www.acteva.com/booking.cfm?bevaid=196828

I just finished reading an interesting post on Copyblogger by Sonia Simone. I love people who aren’t afraid to question the status quo or express an opposing viewpoint to acceptable practices. I love it even when I don’t agree with them, because it keeps the conversation going, ensures we don’t get complacent, and pushes us to explore all the avenues.

The mantra in social media is to invite feedback, engage in conversation. Sonia isn’t advocating ignoring comments. Rather, she suggests we should:

• Focus on where we want to go
• Develop a “red velvet rope policy”
• Ask ourselves “Is this person my customer?” whenever we receive a negative remark.

It’s an article worth the read.

“Are You Getting Dangerous Feedback from Your Readers and Prospects”

I love finding nifty tools, those little gadgets, programs, and the like that make life easier. In fact, when I redid my aveconsulting.com site recently, I added a section in the Visitor’s Toolbox where I list some of my faves. I’ll definitely add this newest one to the list.

If you use subcontractors — or you frequently (or infrequently, because it’s free) send documents that you need signed — you need to check out EchoSign.

Beyond Simple to Use

• EchoSign notifies the recipient via email that there’s a document for them to sign
• The recipient goes to the secure page, fills out the form, signs it digitally, and clicks a complete button
• EchoSign then sends a PDF of the signed document to the signer and the original requester

I just experienced the process from the signer end (W9, Contractor Agreement, Direct Deposit Form), and it was absolutely the most painless on-boarding process that I ever experienced. No printing. No faxing. No scanning. In about 10 minutes I was done (and that was only because I needed to read the agreement). I will hands down use it when I have docs for people to sign, as I’ll get them faster and keep my contractors happy.

Easy on the Bottom Line

As for the cost, if you send five docs or less per month, the service is free. After that, there are tiers based on usage. There are other nifty tools, too, like Zoho Writer, which “enables you to collaborate with partners, employees, and customers on documents and then send them out for instant digital signatures.” You can also use it to store forms and templates that you use again and again. There’s currently no charge for Zoho Writer, and it may be used with any type of EchoSign account.

If you’ve used EchoSign yourself, I’d love to hear about your experience. If you try it after reading this review, I’d like to know how you like it.

NOTE: I have no association with EchoSign whatsoever and in no way benefit from this recommendation — other than to make other consultants happy, which will hopefully reflect positively on Women in Consulting (WIC).

It seems that the recession is finally ending. But if you’re like me, my business took a beating and I have some major planning to do to be poised for opportunities in 2010. However, it seems so overwhelming to do it all by myself.

Luckily, WIC has a workshop on December 1^st that can help me – and you – be ready to take advantage of the business upswing. Seven experts are available to explore all aspects of our businesses, in a one-to-one setting, and help develop the best strategic approach.

We’ll walk away with:

• A blueprint for our businesses
• Valuable tips from the experts on sales, marketing, resourcing, process improvement, competition, client/market assessment, and branding
• Action items to kick-start our success in 2010

So carve out some time to concentrate on your success and join us at the WIC December  “Jumpstart Your Business for 2010” Workshop:

December 1, 2009, 8:00am – 12:00pm

Network Meeting Center

5201 Great America Parkway, Suite 122, Santa Clara, CA 95054

(408) 562-6091

www.networkmeetingcenter.com

Learn more and register at www.womeninconsulting.org

I read a nice article on Raintoday.com that deals with a scenario that most consultants face at one time or another: What to Say When a Client Claims Your Price Is too High” by Charles H. Green, Contributing Editor, Raintoday.com. It’s a good read, so make sure to check out the full article.

“If you’re like most professionals, you’re not comfortable with selling. It’s not easy fighting the feeling that hyping yourself is somehow inappropriate. And it’s worse when you have to deal with objections, doing presentations, and getting rejections—or waiting for the phone to ring.

“But little can compete for sheer discombobulation with the plain old, ‘We think your prices are too high.’ What do you say to that?”

• “Listen to your gut and ask yourself seriously, objectively, curiously, ‘What exactly do they mean when they say your prices are too high.’ And stay there for a minute. That’s because until you know what they mean, you are simply arguing with yourself. You presume to know what the client means and are answering the presumed objections you have invented.”

  According to Green, there’s more than one reason why customers may think this way (read the article for the details on each of these:) 

  • Sticker shock
  • Budget busting
  • Bazaar bargaining
  • Sucker punched

“Here’s the key point. If you try to guess which of those scenarios is operating behind the curtain of your client’s eyes, you have maybe one chance in four of getting it right. But if you choose to guess without confirming your guess with the client, you will lose—even if you guess correctly

“Therefore, the worst thing to do is defend against the attack you are imagining in your own head. The best thing to do is exactly what you don’t want to do—ask the client simply, ‘Can you help me understand what you mean by that?’”

(Blogger’s note: I love this point. It’s key to every client interaction. Don’t guess. Ask. Communicate.)

• “Asking the ‘help me understand’ question: explain that clients often mean widely varying things when they say the price is too high. The read off the list above.  
• “The intent behind the conversation: treat price concerns like any other objective piece of information: you explore its meaning and implications with the client until you have a share understanding.”

Read the full “What to Say When a Client Claims Your Price Is too High” article

Anyone who knows me is probably wondering how I could be writing a post on work-life balance. This year has been full of days that start at 6 or 6:30 and don’t end until midnight or later and working weekends. In fact, I’ve found little time for one of my favorite stress relievers: exercise. NOTE: this post isn’t about the benefits of exercise.

I love the endorphin rush I get from a good walk in our hilly neighborhood while listening to some of my favorite music — another top stress reliever. However, after getting to bed at midnight or later, the last thing I want to do is drag my you-know-what out of bed to exercise. Heck, even when I was a fitness fanatic that wasn’t my favorite hour to break a sweat. The result, I find myself feeling less than stellar for my lack of movement and determined to do something about it. Little did I know all that I’d get out of it.

Lesson # 1: Put a stake in the ground.  My situation wasn’t going to change anytime soon, so I decided to find a new time and claim it as my own. At least four times a week, 5pm is my time. Period. I owe it to myself and my business. I think clearer, and I’m more pleasant–both business-building benefits. And I owe it to my family–I’ll be way more enjoyable to be around.

Lesson # 2: Be open to new possibilities. A key component to my walks’ ability to improve my mood and outlook is the opportunity to lose myself in music and my thoughts, totally on my own away from all responsibilities. However, the second time I was getting ready to go, my eight-year-old daughter asked me to go. This meant no music, no opportunity to mentally escape, no time just for me — three components that make these walks such a stress relief. Yet, this was a chance for free, uninterrupted time with Ashley, to show through my actions that I love being with her, and to encourage her to seek out physical activity.

So instead of resenting the loss of my one hour of “me” time, I chose to welcome this wonderful opportunity to share my walk with my daughter.   

Lesson # 3: Small changes can make a big difference. When we set off on our walk that first day, Ashley put her little hand in mine and started to chat away about her day. We talked about all sorts of topics, from school to vacations to why people litter to friends to the cows and other animals that surround our neighborhood and more. We laughed. And we just plain enjoyed each other’s company, sometimes daydreaming and not saying anything.

The decision to go on my walk with Ashley — and how I chose to view it —  has had a huge impact on how I feel, more than just a walk by myself would do. I still get the endorphin rush and the calming effect that I get from music, but it’s different. Different in a good way — and being open to new ways has a lot to do with that.

Do I miss my solitary walks? Sure, but I can do those when she’s otherwise occupied. Meanwhile, I’ll continue to welcome what the universe has to offer instead of fighting it — or at least try. I’m certain that’s another great stress reliever.

Lesson # 4: Feed two birds with one seed. (I never liked “kill two birds”; I like birds.) I’m a great multitasker. But I don’t typically advocate being a multitasker when it comes to relieving one’s stress. Kind of defeats the purpose, if you ask me. Yet, sometimes feeding two birds with one seed is more rewarding than tending each bird separately. Walking with Ashley gets me moving and outside with nature (another stress reliever that I recommend), and it increases the time I spend with my daughter, time that isn’t spent doing homework or cleaning or running errands. I would call that the best type of multitasking there is.  

There are other lessons of course, but you get the idea. One little walk (or whatever helps you deal with stress and brings you joy), combined with a better attitude and a go-with-the-flow approach, can “keep the doctor away,” give you the feeling that there is some balance in your life, and teach you a lesson or two along the way that you can use elsewhere in your life.