Richard A. Lindsey, CPA

Lindsey & Waldo, LLC – Certified Public Accountants

  • Mar 3

    Current research suggests that we are bombarded with between 300 and 700 marketing messages per day. Current research also indicates that we take note of less than half of those messages, and far fewer make a strong enough impact to be recalled, make an impression, or make a sale.

    Here’s a tried and true strategy for connecting with your customers and prospects. Legendary copywriter, Robert Collier, pioneered and perfected an effective strategy he called “entering the conversation already occurring in the prospect’s mind.” Instead of going straight into your pitch marketing message and being ignored like everyone else, do something different. After all, if you do what everyone else does, shouldn’t you expect the same mediocre results?

    Instead of hitting your prospects over the head with your message, first capture your prospects attention by using something they are already thinking about as the hook. Then, make a smooth transition into the marketing message. This strategy has been proven to work over and over again. There are several ways to implement this strategy. One is by using holidays.

    Holidays are always on people’s minds. For instance, right now people are thinking about what they are going to do for the upcoming holidays. Where are we going for Christmas or Hanukkah? Where’s the New Year’s Eve party? Am I going to make (and keep) any New Year’s resolutions? Where should I take my sweetheart for Valentine’s Day? Where’s the best place to go for some corned beef and cabbage on St. Patrick’s Day?

    And on and on. Those are just the major holidays in the next four months. There’s a major holiday almost every month. There are also obscure holidays you probably never heard of nearly every day of the year. You did know that December 25th is also National Pumpkin Pie Day, didn’t you? So, why not make a connection with your prospect by “entering the conversation already occurring in the prospect’s mind” by relating your message to the approaching holiday?

    You have to make a reasonable connection between the holiday and your offer. Otherwise, the prospect will feel like you tried to trick them and that’s no way to get them to know, like, and trust you, let alone buy something from you. It’s really not that hard. You can probably come up with several ideas if you just sit down and think about it.

    New Year’s Day is easy. Think about tying your message to something new or to a New Year’s resolution. Health clubs and gyms do it every January. The air waves and ads talk about the most common New Year’s resolution around – losing weight. With the promise that this year — you can do it… you can have that new body, the new you — with our help.

    And, of course, you can have a “sweetheart” deal for Valentine’s Day.

    This is a powerful, tried and true marketing strategy. And the best part is… if it works this year, you can recycle it again next year!

  • Feb 17

    New January 31 Deadline for Employers

    Employers are now required to file their copies of Form W-2, submitted to the Social Security Administration by January 31.

    The new deadline also applies to Forms 1099-MISC reporting non-employee compensation, such as payments to independent contractors.

    In the past, employers typically had until the end of February if filing on paper, or the end of March if filing electronically, to submit copies of these forms.

    The new accelerated deadline will make it easier for the IRS to spot errors and verify the legitimacy of tax returns and properly issue refunds to eligible taxpayers. Penalties for late filing can be exorbitant! For example, if a business fails to file Form 1099-MISC or furnish a copy to the payee on time the penalty can be as high as $520 per occurrence.

    New March 15 Deadline for Partnerships and LLCs

    Partnership tax returns are now due March 15, NOT April 15 as in the past.

    S corporation tax returns due date remains unchanged at March 15.

    New April 15 Deadline for C Corporations

    C corporation tax returns are now due April 15, NOT March 15.

  • Jan 20

    In the book Masters of Networking, Don Morgan asserts that there are three ways to increase the power of your network and improve its ability to help you achieve goals. Fortunately, he says, anyone can create this leverage by understanding three fundamental characteristics of human nature. However, he goes on, only those dedicated to becoming master networkers will commit to mastering the arts of friendship, generosity, and character. The person who creates this trilogy of leverage will be on the road to unlocking the full power of networks.

    Friends like to help friends. And at some point in your life, you’ve probably helped a good friend do something that you might not have enjoyed doing— painting a room, helping out with the move–just because he was your friend. You really couldn’t avoid it. If you make good friends of your networking associates, you gain the same kind of leverage.

    How do you turn networking associates into good friends? There’s nothing complicated or mysterious about it, Morgan says. Think back how you and your best friend became friends. You went places together, did things together, talked about things, and one day you realize that you have been best friends for some time without even realizing it.

    That’s what you do with your networking partners. Go places with them, do things with them, help them when they need help. Soon you’ll discover that associates have become good friends. Not all of them, of course, but the more effort you put into it, the more friends you’ll make. And the more powerful your network will be in helping you achieve goals.

    You’re at a party. You’re given several presents. You don’t have anything to give in return. How do you feel? A little less than wonderful, right? It’s human nature to want to give a gift in return.

    The same holds true in networking circles, when you give something to a networking associate- a business referral, emotional support- she’ll want to give you something in return. Perhaps you won’t get a return gift immediately. However, the more you give your networking partners, the more inclined they will be to reciprocate.

    A true gift is an unconditional gift; you give without expecting anything in return. However, usually you get something back anyway. First, you gain the satisfaction of helping a friend. Second, human nature dictates that you will get something in return. When you least expect it, you may receive a gift worth far more to you than the time and effort you expended.

    The most lasting impression others have of you is the first impression: the way you looked and behaved when they first met you. If that’s a bad impression, it may take a long time to overcome and others may be reluctant to get involved with you. A master networker understands this and puts a lot of effort into creating a good first impression by dressing and behaving appropriately at all times.

    However, your long-term image goes well beyond how you look at first glance. Equal in importance, according to Morgan, are three character attributes: responsibility, reliability, and readiness. The group needs some tasks done or problem handled, do you take responsibility? Can you be counted on to come through when the need arises? Are you quick to volunteer your services?

    Above and beyond the first visual impression you make, your responsibility for, reliability within, and readiness to participate in group activities become the most important aspects of your image in the long run. If the group sees you as an asset by virtue of your character, individuals in the group will trust you, rely on you, and enjoy associating with you. And they will feel more comfortable referring their friends and associates to you— and your business.

    In the end, this trilogy of networking leverage comes down to an old principle, known in some parts of the world as the “Golden Rule”. In BNI we just phrase it a little differently: “Givers Gain.”

    To find a BNI chapter near you, visit BNI.com.

  • Dec 31

    Last year, in Phenix City, Alabama, tax preparer Lasondra Miles Davis was ordered to pay $1,941 in restitution to the IRS, sentenced to two years in prison, and one year of supervised release for her involvement in a stolen ID tax fraud.

    Davis pleaded guilty to one count of aggravated ID theft. Her mother, Teresa Floyd pleaded guilty earlier in the year to one count of conspiracy to defraud the U.S. and one count of aggravated ID theft.

    News outlets cited court documents that said that between March 2011 and May 2014, Davis and her mother operated several tax preparation businesses where she obtained stolen IDs. Floyd then used the information to file more than 900 false federal income tax returns that claimed more than $2.5 million in refunds.

  • Dec 9

    Shhhh! I have a secret for you. I’m going to share it with you today, but you have to promise to keep it under wraps.

    Applied to your business correctly, this one “secret” could transform your business. If you have the faith to apply this secret correctly, it could be worth millions. Your life could change from struggling to keep the wolves at bay to successful entrepreneur nearly overnight.

    Okay, here’s your tip of the day. Well, it’s not so much a tip of the day, as it is the tip of the week, or maybe the tip of the year…

    Change your prices. That’s all you have to do. I have seen more people make more money simply by raising their prices than any other advice I’ve given them.

    Nearly every business person grossly underestimates the elasticity of price, and neglects the fraction of their customers/clients/patients who will cheerfully buy a higher priced premium option of what they sell if only it were offered. They leave a lot of money on the table by not offering a leather bound version of the paper bound product; a red door to walk through in the back instead of the blue door in the front.

    Marketing guru Dan Kennedy talks of the time he lived in Phoenix. At the time, there was a very popular nightclub in Phoenix that had a big, long rope line in the front where you could buy a card for $500 a year that allowed you to stand in the rope line in the back. Well, you say, who’s gonna buy a card for that? A lot of people did, based on the length of the line in the back. In fact, some nights the rope line in the back was longer than the rope line in the front.

    Not everyone will, but there are plenty of customers who will select a premium option. Price is very elastic. Most business people don’t understand just how elastic price is because of the manner in which they set their prices. Here’s what most people do, and I’d be willing to bet you’ve done the same thing. They look around at what everybody else in their industry is charging and set their price right in the middle. They think they’re being “competitive.” If they’re really daring, they try to be a little higher than the average; or if they think they can buy volume, maybe they set it a little lower than average.

    Alas, there are also those poor souls who attempt to price themselves at the bottom of the heap in order to proclaim they have the lowest prices on the block, in their town, their region, or whatever. It is a dangerous strategy because, as I’ve warned you time and again, there is always someone willing to go out of business faster than you are.

    Here’s the power of transaction size. Granted, it’s a very simple example, but one you might ought to post on your wall where you can see it every day. How do you get to a million dollars in sales in your business? You can get there with one transaction, if you can sell someone something for a million bucks. If you’re going to sell something for $100 it’s going to take you 10,000 sales to make it. Making a million dollar sale is not 10,000 times harder than making a $100 sale. It just isn’t. Now, I’m not saying Starbucks could figure out how to make a million dollar sale, but they did figure out how to sell a cup of coffee for $8. They didn’t do that by getting a committee together in a conference room and saying, “Let’s see, Denny’s sells their coffee for $0.55 and Dunkin Donuts is $0.72, so, let’s be courageous and go for $0.99.” That’s NOT how they got there.

    You’re familiar with Omaha Steaks, right? They come in a Styrofoam ice chest delivered to your door. They have good steaks. But, you know they also have hamburgers. And they have hot dogs. All of them delivered right to your door. So, Omaha steaks are, let’s say, double or triple the price of the best beef being sold in the supermarket or butcher shop. Maybe they’re five times as much as Sam’s or Costco. Yes, they do deliver, but a steak is a steak is a steak. Right?

    Wrong! Now, there’s Allen Brothers. Ever try theirs? I hear they are wonderful. It’s twice the price of Omaha. These guys are in the same business, catalogue selling of steaks, hamburgers, hot dogs, and they have the gall to charge twice as much as Omaha! And people are switching like there’s no tomorrow.

    I recently read about a cosmetic surgeon, Doctor Fairfield, who lives in the Philadelphia area. He does seminars to bring in new patients. At the seminar he offers a $25,000 membership in the practice for the patient to have all the cosmetic procedures they want or need for three years. So you want to come have a Botox shot every day? You can; $25,000 membership fee up front. Five people in a room of 150 chose this option, and three of them had no prior relationship with him. They showed up based on a newspaper ad and plunked down $25,000. That’s price elasticity. It’s everywhere. I promise you, most people don’t understand it and most people underestimate it.

  • Nov 11

    Steve Jobs was the co-founder, chairman, and chief executive officer of Apple, Inc. This is the fifth anniversary of his death. These inspirational words are often referred to as his last.

    I have come to the pinnacle of success in business.

    In the eyes of others, my life has been the symbol of success.

    However, apart from work, I have little joy. Finally, my wealth is simply a fact to which I am accustomed.

    At this time, lying on the hospital bed and remembering all my life, I realize that all the accolades and riches of which I was once so proud, have become insignificant with my imminent death.

    In the dark, when I look at green lights, of the equipment for artificial respiration and feel the buzz of their mechanical sounds, I can feel the breath of my approaching death looming over me.

    Only now, do I understand that once you accumulate enough money for the rest of your life, you have to pursue objectives that are not related to wealth.

    It should be something more important:

    For example, stories of love, art, dreams of my childhood.

    No, stop pursuing wealth, it can only make a person into a twisted being, just like me.

    God has made us one way, we can feel the love in the heart of each of us, and not illusions built by fame or money, like I made in my life, I cannot take them with me.

    I can only take with me the memories that were strengthened by love.

    This is the true wealth that will follow you; will accompany you, he will give strength and light to go ahead.

    Love can travel thousands of miles and so life has no limits. Move to where you want to go. Strive to reach the goals you want to achieve. Everything is in your heart and in your hands.

    What is the world’s most expensive bed? The hospital bed.

    You, if you have money, you can hire someone to drive your car, but you cannot hire someone to take your illness that is killing you.

    Material things lost can be found. But one thing you can never find when you lose: life.

    Whatever stage of life where we are right now, at the end we will have to face the day when the curtain falls.

    Please treasure your family love, love for your spouse, love for your friends…

    Treat everyone well and stay friendly with your neighbors.

  • Oct 3

    It never ceases to amaze me: I observe business people and salespeople allowing customers (and money) to leak out of their business. Many times without even realizing it.

    For example, I watch people go to Chamber, or other networking, events with the sole purpose of collecting as many business cards as they can. Somehow they seem to feel, the more cards they collect, the more contacts they can make, the more business they will generate. And they will be everywhere, at every event tangentially connected to their business. Others may view them as the king or queen of networking.

    Yet the business, the referrals, aren’t coming and they ask, “Why aren’t I getting referrals?”

    There could be several reasons such as forgetting to ask, focusing on the wrong people, having no system in place, or putting pressure on customers or referral partners unknowingly.

    Here are six things you can do to increase your referrals.

    Ask. Yes, it starts here. If you don’t ask you may get a few haphazard referrals, with the emphasis on few. If you learn how to properly ask your customers and partners for help, some will enthusiastically promote your product or service. In my experience, you’ll never get all of your customers to give you a referral, but you don’t know which ones will be ambassadors for you until you ask. Note: Referral partners don’t have to be customers. They could be friends, vendors, or others in a supportive group, who have, over time, come to know, like, and trust you.

    Make people comfortable giving you referrals. It’s important to remember that your customers don’t like to feel like they are selling their friends to you. For many, offering an inducement or a bribe in exchange for names not only makes them uncomfortable, but may cause them to question the quality of your goods or services.

    You may have customers or referral sources who would like to refer, but don’t know how. By giving them easy ways to refer their family and friends without making it feel like you are paying them, you will receive more and a better quality of referrals.

    Show appreciation. Remember to thank your referral partner or customer for the referrals. If privacy allows, let them know when a referral works out and give them an update. One of my favorite ways to do this is with a handwritten card. People like to be appreciated. When you take the time to do something so few do these days, send a handwritten card – NOT a text, NOT an email, NOT a tweet, a handwritten card – your referral source will be pleased and more willingly refer you the next time.

    Focus on the right relationship. You don’t have the time to have a great relationship with everyone you meet. It’s impossible! That’s why you have to focus your energy developing the right relationships. For example, would you spend the same energy on a customer who has only purchased one entry level item from you in the last year, as you would a CEO who purchased your product for every employee at her company?

    Put systems in place. You already know that you don’t have time to build quality relationships with everyone; however, you can put systems in place such as follow up procedures to help nurture and develop relationships so that you can have more of those quality relationships referring you.

    Grow referral partners. Being an active member of a closed networking group, like BNI, gives you the opportunity to develop relationships with potential referral partners without the distraction of direct competitors. Unlike other networking opportunities, BNI encourages your efforts to build quality relationships with referral partners. Those trusting relationships can develop into your most prolific referral partners.

    Generating referrals takes a well-designed system and consistent effort to operate reliably. But the pay-off is worth it. Referrals are one of the highest probability and most profitable sources of new customers.

  • Aug 19

    Don’t you just love Congressional tricks?

    One of my personal “favorites” is when they cram a bunch of unrelated business into their bills.

    Which is just what happened about a year ago, and it could affect you…

    H.R. 3236, popularly known as “The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015” (yes, that’s how these things are named) brought some tax-law-related changes.

    Individual tax returns are still due on April 15th — and a six month extension period is still available. But …

    * Partnership tax returns are due March 15, NOT April 15 as in the past. If your partnership isn’t on a calendar year, the return is due on the 15th day of the third month following the close of your tax year.

    * C corporation tax returns are due April 15, NOT March 15. For non-calendar years, it is due on the 15th day of the fourth month following the close of the tax year.

    * S corporation tax returns remain unchanged–they are still due March 15, or the third month following the close of the taxable year.

    On TOP of that, another doozy: audits can get you for six years now, instead of three. Without going into all of the details, essentially if you withhold reporting of 25% or more of your income, the IRS has six years to figure it out. They’ve always had unlimited time for fraud or criminality … but there was some wiggle room for underreporting in the past. No longer.

    All this (and MORE!) in one measly highway bill.

    So, it pays even more to work with a pro, yes?

    These sort of issues are what we specialize in worrying all about — so you don’t have to. Because YOU have to keep your head in a bigger picture.

    Entrepreneurs know that hard work and a great idea don’t guarantee success. Fortunately, most of them also know that failure isn’t final — almost every successful business owner client of mine has crashed and burned at least once in his/her career.

    One of the best ways to pick yourself, or your business, back up off the ground is to take a fresh look at things that you “thought” were set in stone. Here are some strategies I compiled for you to possibly give your business a fresh lease on life, come fall, or into 2017…

    Re-target your market. In the heat of start-up passion, entrepreneurs frequently try to interest too broad a market: “Everyone will want to buy this!” The result: getting lost in the crowd. The more closely you define your market, the more success you will experience.

    Re-examine your price. Price is obviously supremely important. See how you can lower your overhead or cut production costs. Perhaps there’s a new way to package your products, so that your average transaction value can go up?

    Identify and push your best product. Focus on what works. If your hot product is coffee cups, look for ways to highlight and expand that niche instead of veering into new territory. How about different colors and holders for those cups?

    Make your marketing materials more memorable. Emphasize the benefits — SPECIFICALLY how features of your product or service will improve business or the quality of life for your customer. And scrutinize your advertising. Using big media is not always the answer, especially when you have narrowed your market. Don’t overlook narrowly-targeted marketing efforts or joint promotions.

    Keep promoting! Make sure your message sinks in. Find affordable ways to reach your target market, and use these avenues as often as you can. Try social advertising!

    These ideas are to get you started. There may be longer conversations to be had. If so, that’s what we’re here for.

  • Jul 8

    I recently read about a show on CNBC that was described as a cross between Shark Tank and Top Chef. (Seriously… Can’t you see that producer walking into a meeting with CNBC and pitching it exactly that way.) The show was called Restaurant Startup and I just had to check it out.

    The setup is that there are two teams of restaurant owners who approach the “sharks” with their concepts. In one episode there was a married couple who ran a Lebanese-themed deli in Oklahoma City that wanted to expand into a sit down restaurant, and the pair of good ol’ boys with a southern comfort food joint in Kingsport, Tennessee who wanted to open a second location in Knoxville. The sharks sample some dishes and quiz the competitors on their operations. They pick one and give them 36 hours and $7,500 to show off their food and their skills. After that “opening night,” they decide whether to invest their own money in the concept.

    Early in the show, the good ol’ boys serve the sharks some dishes prepared from the owner’s grandma’s recipe book. And the shrimp and grits did look mighty tasty. One shark asked the chef how much the owner currently charges for it in Kingsport, and learned it was $12. Then he asked how much the average check was, and learned it was just $13. “This is a $20 dish in Knoxville,” he said, pointing down at the grits. “You need a $35 average check to make it work there.”

    The chef did not want to hear that he had to raise prices, and much wailing and gnashing of teeth ensued. He objected that diners in his town wouldn’t pay that much for the food. His grandmother who came up with the recipe wouldn’t want him charging that much for the food. And he wanted everybody to be able to afford to eat at his restaurant and enjoy his grandmother’s great dishes.

    (Does any of this sound familiar? I can just hear some of you saying “my customers won’t pay any more!”)

    The sharks agreed that it would be a big jump to raise prices to those levels, but they insisted that the point of running a restaurant isn’t just to share grandma’s southern comfort. It is to make money—and making money, in this case, would require higher prices.

    The sharks chose the good ol’ boys for the test kitchen, and set them up with a local consultant to help walk them through the process. Once again, pricing came up. The owner said flat out “I don’t want to serve a $19 piece of fish.” The consultant explained the restaurant isn’t just serving a piece of fish, it’s serving an experience— then proceeded to show the owner how he could garnish and plate the fish to look like it’s worth the price he had to ask diners to pay.

    At that point you could almost see the light bulb go on over his head. He readily agreed to raise his prices, and the pop-up restaurant opened for business. Diners who filed in that night loved the food. Unfortunately for our good ol’ boys, service and management weren’t as good as they should have been and the sharks declined to fund the concept. It was a hard lesson for them to take home to Tennessee.

    And here’s our lesson for the day. If you’re like most small business owners I know, you at least profess to want to run your business to make money. You may think your customers won’t pay more— but you’re probably wrong. You may think that your mentor, or the person you bought your business from (who didn’t charge enough himself) would disapprove— but it’s your business, not theirs. And you may really want everyone in town to be able to enjoy your great product or service—but can you really make the kind of money you deserve if you price yourself into bankruptcy?

  • Mar 4

    Many years ago, Folgers® coffee scored big with a series of ads taking the viewer inside various gourmet restaurants while an announcer whispered “we’re here at such-and-such snooty restaurant, where we’ve secretly replaced the fine coffee they usually serve with Folgers® crystals. Let’s see if anyone can tell the difference.” And they interviewed diners, who expressed shock, and I’m sure no small amount of embarrassment, when they discovered how much they liked the cheap Folgers® Instant instead of the “gourmet” brand they expected. (This was way before Starbucks® elevated our palates and made us all coffee connoisseurs.)

    A few years ago, Walmart® shamelessly ripped off paid homage to Folgers® with their own ad promoting-believe it or not-Walmart® steaks. “We’re here at the famous Golden Ox Steakhouse in Kansas City, where we switched their steak, with Walmart’s choice premium steak…”

    Now, I can’t vouch for the quality of Walmart’s meats, but let me make two points about Walmart® steaks, with lessons for your own business.

    There is a placebo effect. Diners who gear up for a big night out at a fine steakhouse are primed for a great meal. They expect choice ingredients everywhere, and select service from a well-trained staff. And they’ll probably be pretty happy, even if the experience isn’t “objectively” all that great.

    This effect has been proven time and time again. Researchers at Stanford University used MRIs to study Caltech grad students’ brains as they swallowed five red wines priced at $5, $10, $35, $45, and $90 per bottle. They found that as the price of the wine rose, so did the activity in the subjects’ medial orbitofrontal cortices. (Apparently this is the part of the brain that experiences pleasure.) The “catch,” of course, is that the subjects didn’t drink five different wines-they drank three. The wine presented as costing $45 per bottle was really the one costing $5-and the wine presented as costing $90 per bottle really cost just $10.

    The placebo effect won’t work just anywhere. Diners have to really expect a great meal for it to work. Nobody who shows up at the squat-and-gobble all you can eat buffet expects a world-class steak. They are just happy they don’t see marks from where the jockey was hitting it.

    There is also a Walmart® effect. I understand Walmart® steaks are actually perfectly fine beef. They’re USDA “choice,” which is the same cut you find it mid-priced steakhouses like Outback® or Longhorn®. (The top 3% of beef, with the most marbling is graded “prime.” That’s the stuff you’ll find “dry-aged” at elite steakhouses, often drenched with butter, and sometimes served with a side of Lipitor®. The next 55%, with “slightly abundant marbling,” is graded “choice.” That’s the stuff you grill at home, and it’s really pretty good. Finally, there’s USDA “select,” which usually winds up ground into hamburgers.)

    The problem, of course, is that Walmart® has positioned itself as being the home of discount prices (cheap). And nobody associates “cheap” with “good.” Nobody expects good steaks at Walmart®. So how does Walmart® get around our prejudice?

    Well, here they resort to a classic “dramatic demonstration.” Showing happy diners enjoying Walmart® steaks is a lot like H&R Block® ads showing a stage full of happy clients stepping up to claim surprise refunds. It’s just like “Vince from ShamWow®” telling the camera guy to follow him as his miracle chamois soaks up a spill.

    The downside of this approach is that while Walmart® tells us their steaks are “surprisingly good,” at least some of us still focus on the “surprise” more than the “good.”

    To sum up: 1) the “placebo effect” actually lets us sell downscale stuff at an upscale price; however, 2) the “Walmart® effect” actually keeps us from selling upscale stuff in the downscale environment.

    Still skeptical? Ask yourself this-would you have nearly as hard a time believing steaks from Target® are good?

    The bottom line for your business is this: if you position yourself as a premium provider, clients may not even realize if you occasionally drop the ball. But, if you position yourself as a discounter-if you give yourself a reputation for being cheap-clients will have a hard time believing you’re good!

    You probably didn’t go into business to be the Walmart® of your profession. Let Walmart’s challenge in selling steaks remind you why you should position yourself as high up the food chain as you can!