Tax Policy Encourages Corporate Debt

Steve Marr — Tue, 21 May 2013 07:18:25 +0100

The tax code from the IRS encourages debt rather than equity. When a corporation earns money, they pay an income tax on the earnings. If earnings are distributed to shareholders, those dividends are taxed again as personal income. This represents double taxation and discourages dividends to investors.

However, when a company borrows money, the interest paid is tax deductible. It is only taxed once as income to the investor.

Consider how a business thinks given ...

The Importance of Personal Devotions

Steve Marr — Mon, 20 May 2013 08:10:00 +0100

CNBC recently ran a piece about how workers are becoming increasingly stressed in the workplace. You can read the story here: http://www.cnbc.com/id/100624671.

Today’s workers are stressed from multiple demands. I experience this stress from many clients who feel pressured. This is why we need to learn to rely upon the Lord every day. We need to ask for guidance about what tasks to undertake, how to plan our week, how to serve customers, and how to meet our employ...

When an Industry Declines

Steve Marr — Fri, 17 May 2013 07:37:22 +0100

Recently Walmart and Sears have closed their in store photography centers. In past generations, parents would dress up the family for the annual portrait. Today, few use a professional photographer.

When I was younger, I fancied myself a pretty good amateur photographer. I bought a Nikon 35 millimeter with several lenses. The camera cost around $5,000 in today’s dollars. I took a lot of shots using slide film and printed the best. In the past, taking pictures was costly and r...

Create Positive Sanctions for Customers

Steve Marr — Thu, 16 May 2013 06:23:26 +0100

Sometimes we consider a sanction to be a penalty for breaking a rule; thus, something negative. However, a sanction may also be positive. It can also mean that you receive approval to do something. Most people respond better to positive sanctions than to a penalty.

In the past, many suppliers offered terms requiring net payment in 30 days with a 2% discount if paid in 10 days. Offering this discount encourages faster payment. Today, few businesses offer this discount.

Use a Paper Shredder

Steve Marr — Wed, 15 May 2013 21:56:21 +0100

Our trash baskets are a treasure trove for identity thieves and nosy people. Protect yourself with a paper shredder.

Shred all personal, banking and other important documents that you don’t want others to see.

More than one business has encountered the troubling experience in which a competitor rummaged through trash looking for useful information. Don’t let this happen to you.

Make it Easy for Customers to Ask Questions Online

Steve Marr — Tue, 14 May 2013 07:25:13 +0100

Some websites make it difficult to ask questions. This sends the message to the customer, “Just make the order and send me money. Don’t bother to ask me anything; just trust me.” You may be able to generate some sales without providing a way to ask questions online, but encouraging questions will boost your bottom line.

Start with a question box on your website that encourages questions. When I receive questions, I write my answer in Wo...

When Employees Delegate Up

Steve Marr — Mon, 13 May 2013 05:55:12 +0100

Most positions involve knowing how to delegate work and responsibility to others. You can’t do everything, every time. Moses provided a model when he instructed, “The case that is too hard for you, you shall bring to me, and I will hear it.” (Deuteronomy 1:17, NASB)

Sometimes your employees will bring issues or decisions to you that they are capable of making, but prefer not to make. Here are several examples come from some of my recent clients.

Time is Money

Steve Marr — Fri, 10 May 2013 08:55:49 +0100

I receive requests asking for my free time regularly. If I said yes to each request, I would get little else done. I filter these requests for free time into three categories.

Some requests come from people with whom I have a relationship. For example, a good client asked me to help provide a perspective on a church building issue. I was happy to accommodate. We need to share ourselves in ways that strengthen our relationships. Another example was that a good friend ask...

Survey Restaurant Customers

Steve Marr — Thu, 09 May 2013 05:05:51 +0100

Many restaurants struggle today. Sometimes the struggle is difficult enough to cause them to go out of business, and they don’t have a clue why. A simple survey could help restaurateurs understand why customers come to their restaurant and return.

Too many restaurant owners care little about anything except food and service. This is a mistake. All businesses need data to make informed decisions about both. A customer survey can provide that feedback.

Develop a ...

J. C. Penney, Why Strategic Decisions Matter

Steve Marr — Wed, 08 May 2013 08:35:06 +0100

In 2011 Ron Johnson was hired to run J.C. Penny. Johnson had been responsible for running Apple’s retail sales unit. Now the company is struggling with poor sales, and stock prices have declined 50% in a very good stock market environment. The Board of Directors for J. C. Penney recently dismissed Ron Johnson.

Two problems should have been obvious to investors and the Board. Apple sold high-end electronic products to wealthy and middle class customers with large pro...

Listen and Respond to Questions

Steve Marr — Tue, 07 May 2013 06:42:23 +0100

Listening and responding to questions is a critical skill that all business people must develop. I find that it is a skill that a lot of business people struggle with. This affects relationships with customers, staff and others.

A study demonstrated that people tend to spend 50% of their listening time trying to think about how to respond. King Solomon wrote, “He who answers before listening--that is his folly and his shame.” (Proverbs 18:13, NIV)

Principle versus Method

Steve Marr — Mon, 06 May 2013 08:16:59 +0100

In business you can focus on a key principle or a method. Take an example from sales. When a salesperson runs through a canned presentation, the salesperson is working by method. When another salesman asks questions, listens for response, tries to understand the needs of a customer; that salesman works by principle. You can get caught up with a method that works most of the time and lose sight of a more important principle.

Consider some examples from scripture abou...

How to Answer Foolish Questions

Steve Marr — Fri, 03 May 2013 05:07:16 +0100

We all get questions. Many are good questions; some are downright silly. King Solomon provided a guide in dealing with foolish questions when he said, “Answer a fool according to his folly, or he will be wise in his own eyes.” (Proverbs 26:5, NIV)

For example, a client asked me this question: “I want to hire my sister, and pay her in cash to protect her from paying tax. Is this ethical?” My answer was, of course, was “no.”

Another ti...

When You Are Second Best

Steve Marr — Thu, 02 May 2013 08:53:39 +0100

We all like to be first. We all like to be considered the leader. The reality is that most often, we are not. We need to accept that reality and understand how to use it to our advantage.

Competition is good and healthy. King Solomon wrote, “As iron sharpens iron, so one person sharpens another.” (Proverbs 27: 17, NIV) While you may not always like vigorous competition, you become stronger when pushed.

Avis ran a significant advertising campaign bas...

Create a Vision

Steve Marr — Wed, 01 May 2013 09:33:45 +0100

I recently received several questions from nonprofit organizations. One question came from a board member who was concerned with the direction of the leader. Another came from “Mark,” a nonprofit CEO complaining about board interference as he tried to do his job. Here is my response to both.

The founder or successor leads the ministry. This person should have a clear vision. When recruiting board members, the leader shares the vision with prospective mem...

When Interviewing Applicants, Ask For Solutions

Steve Marr — Tue, 30 Apr 2013 06:15:17 +0100

When interviewing for high level positions, I like to pose realistic situations and ask prospective candidates for solutions. Asking a candidate to offer real answers to real problems is very helpful in assessing ability and learning how they think.

When someone leaves a position, they usually leave problems that the next person will need to solve. Management is wise to present one or more of these problems to prospective replacements. Existing managers want new senior people to start c...

Find an Encore Career

Steve Marr — Mon, 29 Apr 2013 08:49:38 +0100

Ten thousand people turn sixty-five every day. With shrinking retirement funds and medical advancements that prolong life-span, many of these seniors will find themselves back in the work force in what many are dubbing an “encore” job. It is a second chance to invest their skills and energy. It may even take them a different direction to pursue a long-held interest or side-lined dream.

&nbs...

Handling Requests for Money

Steve Marr — Sat, 27 Apr 2013 10:03:24 +0100

Most businesses receive phone solicitations for different charities and causes they do not want to support. Some of these advocates are pushy and hard to get rid of unless you just hang up.

Rather than be rude, I ask one question, “Have you filed a voluntary disclosure statement with the Better Business Bureau?” If they have, I ask them to send me a copy.

The Better Business Bureau encourages charities to file these statements. Few do. I simply state t...

Always Produce Quality Advertisements

Steve Marr — Fri, 26 Apr 2013 07:38:37 +0100

A common issue I encounter is poor quality advertisements. Any advertisement, business card, or hand-out is a reflection of your businesses. When customers see misspellings, fuzzy or poorly lit pictures, or badly worded ad copy; the message to a potential customer is that the business is low quality and has no money. Instead of encouraging business, it tells prospective customers to stay away and find somewhere else to put their money.

On the other hand, a good looking ad...

Evaluate Staff on Key Points

Steve Marr — Wed, 24 Apr 2013 05:25:39 +0100

Evaluating staff performance is always challenging. It is easy to focus on small details and lose the big picture. When working with clients, I suggest they stay focused on the important issues: the quantity of work, its quality and dependability. To do that you must establish expectations for each key category.

The first criterion for evaluation is the quantity of work. A staff member must produce, provide service to customers, and reach certain standards in sales or prod...

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