January may be a prime planning month, but February offers its own opportunities to refine your strategies and seek ways to invigorate your approach. Whether you're looking to fine-tune your operations or strengthen your professional relationships, this issue of Business in Action is crafted to help you shine throughout the year ahead.
Start with a deep dive into automation, a burgeoning advanced tool that can help you streamline your internal processes and enhance productivity. Read on to learn how to better leverage it in ways that can boost efficiency and give your organization a competitive edge in today’s fast-paced market.
For those seeking clarity on financial management, check out the enclosed overview on business taxes, which breaks down the foundational aspects of how to handle your tax responsibilities effectively. While enlisting the guidance of a professional is always a good idea, this information may give you more confidence to navigate the tax season ahead.
Arguably nobody has a work ethic like a pro athlete, and former MLB player Kevin Thompson has managed to successfully translate his to the corporate world. He offers actionable advice and motivational insights for anyone looking for a spark in their day-to-day routines.
Though business may be all about the relationships, building ones strong enough to sustain your organization isn't always so easy. Inside, find five pillars of personal connections you can apply to your professional ones with clients and colleagues to make them deeper and more effective.
Here’s to discovering tools and inspiration to help you thrive as you move through the year. As always, it’s a pleasure to send you this magazine.
Efficiency and productivity are absolutely critical in today’s fast-paced corporate environment, and automation—once a futuristic idea—may just be a key to maximizing both. This technology is changing the business landscape by simplifying processes, decreasing mistakes, and handling repetitive tasks; in fact, according to a Deloitte study, 80 percent of executives think it can be applied to any business decision. Adopt it in your own company, and you may see better results, lower expenses, and a major surge in growth.
Business automation is exactly as it sounds: it’s the use of technology to automate various types of duties and processes in the workplace. Think about how many hours are spent on simple and rote tasks like responding to routine customer inquiries, processing invoices, and entering data. Although necessary, they can also be susceptible to errors and pull employees away from more valuable work. But automation can take them on with ease, providing standardization that leads to greater accuracy and consistency. Just as important, it enables your team to commit their time to engaging in innovation and creativity and strengthening consumer relationships—uniquely human-centric skills that are game changers when it comes to separating from the competition and achieving business success.
The effects of automation on workflow efficiency are significant. Don’t believe it? Consider a factory in China that replaced 90 percent of its human workforce with machines, which then turned into a 250 percent increase in productivity and an 80 percent drop in defects. And that was a decade ago—automation tech has improved even more since then. Of course, this isn’t to say that you should oust your own staff in favor of technology; as indicated earlier, there are many aspects of business that require abilities only humans can provide. But this shows that for certain areas of your company, standardizing procedures and removing repetitive work may help attain a higher degree of efficiency.
Wondering how your company can reach these numbers? Robotic process automation (RPA) tools from companies like UiPath and Automation Anywhere, for example, can allow you to automate your routine tasks, including documentation and invoice tracking. This will help you get through project timelines faster and serve customers more proficiently for an all-around better employee and user experience.
Over the years, one of the biggest fears many employees have had about automation is that it will make their jobs redundant. However, that sentiment is changing as companies discover the best ways to implement this tool for the benefit of their workforces. Several studies from Salesforce reflect this: for example, 89 percent of workers reported experiencing greater satisfaction in their jobs thanks to automation, gaining a better work-life balance. In addition, 74 percent of respondents said automation has helped them be more productive, while 90 percent of IT workers felt it improved collaboration across departments.
A major reason for this is simply because, as noted above, automation enables employees to engage in more demanding and fulfilling projects. Rather than being stuck spending hours on tedious tasks, they can concentrate their full attention on content ideation, strategic planning, and more, maximizing their strengths and interests to help them feel more inspired in their work and complete it at a higher-quality level. And beyond freeing up their time, automating repetitive chores can give your staff access to data and insights, equipping them to make wise decisions and propel positive change.
There are many tools that may be especially useful to boost employee production, such as those from top CRM company Salesforce. Its lead management, follow-up email, and performance-reporting automation platforms may allow those in sales to devote more time to developing relationships and closing deals. Similarly, project management technology from Asana and Trello can help any team focus on project execution instead of administrative overhead by simplifying task assignments and progress tracking.
Another vital area where automation shows great advantage is financial operations, primarily since mistakes in this area may be especially detrimental. There are a wide variety of tasks you may focus on depending on your business needs. Consider implementing automatic billing and invoicing, which can improve accuracy and ensure that nothing gets missed, or moving payroll to an automated platform that will initiate checks on a consistent schedule and enable you to quickly and easily make adjustments across the board. As for accounting, QuickBooks and Xero are two excellent software options that offer tools for automatically tracking expenses and invoices. Xero, for example, can allow you to create real-time financial reports, instantly classify transactions, and combine bank feeds. Apart from reducing manual data entry, these systems can provide insightful analysis to help you make better financial decisions.
Even customer experience has improved thanks to automation, most notably chatbots and other AI-driven support systems like those from Salesloft and Intercom. Such aids can offer immediate assistance and quick resolutions to concerns from your client base. According to Solvvy, 55 percent of consumers give up after ten minutes of having to wait for a live agent, making these tools essential for preventing frustration and retaining interest. And over two-thirds of users actually find them helpful now, meaning they likely won’t turn off people from your company as much as they would have in the past. Implement automation in your customer service, and you may not only speed up communication by 80 percent but also save about 30 percent of costs on your current customer support per Invesp—a win-win for everyone involved.
In addition, you can utilize AI-powered analytics tools to gain insights into consumer behavior, enabling your company to better match their ideals and fulfill their wants and needs. Google Analytics is always a simple and easy choice for analyzing this info across platforms, or consider Hotjar, which helps you dive deep into how users interact with your website.
Automation can present transforming advantages for many companies, allowing them to simplify procedures, lower operating costs, and concentrate on strategic projects promoting growth. By adopting this tool, you can better propel your business ahead rather than get left behind.
TAKE ACTION:
Evaluate your business processes to see where you can implement tools like RPA or CRM systems to streamline operations and boost efficiency.
Filing taxes can be a daunting task for anybody, but it may be especially stressful for business owners. Between the many different deadlines, types of tax liabilities, and deductions or credits to know, it’s enough to make anyone’s head spin. While it’s always a good idea to utilize the services of a tax professional to help you meet your federal-tax filing responsibilities, avoid late fees, and employ money-saving strategies, understanding some of the basics can make the whole process smoother and less confusing.
The typical Tax Day is April 15, but that may not necessarily be your deadline for filing and paying your federal business taxes. For instance, it could be pushed to the next business day if it falls on a weekend or legal holiday, or you could ask for a six-month extension. Here are a few other factors that may influence when your due dates actually fall.
Business structure
The legal entity you chose when forming your business can affect when you file—sole proprietorships and C corporations have the standard April 15 deadline, but the one for S corporations and partnerships comes a month earlier.
Tax year
A company may be able to choose to follow either the calendar year (January 1 to December 31) or a fiscal year—a twelve-month period that ends on a date other than the last day of December. For the most part, those with the latter will have a filing deadline of the fifteenth of the fourth month after the conclusion of their tax year. Be aware, however, that a business’s tax year is set at its formation; adopting an alternative fiscal year later on can be a complex process requiring IRS approval.
Quarterly payments
Rather than one lump sum at the filing deadline, businesses must make quarterly estimated tax payments to the IRS if they expect the total to be at least $500. These are generally due on the fifteenth of every April, June, September, and January (for the last quarter of the previous year). Be sure to make these payments on time—you can be charged a penalty fee if you miss one.
In addition to estimated tax payments, there are four main categories of federal business taxes your company may have to pay. You may also be responsible for state and local taxes, including ones for income, property (such as if you own buildings or land), and sales.
Income tax
All businesses owe income tax at the federal level, though how you are taxed can vary according to how your company is legally structured. C corporations, for instance, are taxed on their profits, which are subject to a corporate tax rate of 21 percent. Meanwhile, sole proprietorships, partnerships, and S corporations are considered “pass-through entities” by the IRS, meaning they aren’t taxed separately. Instead, these owners report their net income on their individual returns and are taxed at their personal tax rate.
Self-employment tax
If you own a sole proprietorship or have a stake in a partnership, you’re subject to a self-employment tax, to be used for Social Security and Medicare. The total tax rate is 15.3 percent of your net earnings: 12.4 percent for Social Security (applied just to the initial $168,600) and 2.9 percent for Medicare with no cap. Generally, this tax applies if you have net earnings of $400 or more, and you can deduct 50 percent of it on your income taxes.
Employment tax
For those companies with employees, they must pay employment tax. It includes both Social Security and Medicare taxes, for which your employees pay a portion. It also encompasses the income withheld from their paychecks to cover their income taxes as well as unemployment taxes (FUTA), which are your responsibility. Note that this tax is due quarterly—on the last day of April, July, October, and January (for the fourth quarter of the previous calendar year).
Excise tax
Certain businesses, including merchants, must pay an excise tax at the time of purchase on specific goods and services, such as health-related ones, fuel, tobacco, and alcohol.
While all these taxes can add up to a hefty payment, you may potentially be able to reduce what you owe by hundreds or even thousands of dollars through applying deductions and credits. The former are “ordinary and necessary” expenses that can help reduce taxable income, while the latter can directly lower your tax liability. Most businesses use a combination of both to maximize their savings. For example, you may be able to deduct what you paid for advertising or utilities or qualify for a credit if you invested in energy-efficient improvements to your building during your tax year.
Understanding your business’s tax obligations can feel complex, but it’s all about breaking down the key pieces of information. To ensure that you don’t miss a deadline or payment, consult with a financial professional, who can help you sort through all the details while also finding ways to possibly minimize your tax liability.
TAKE ACTION:
Consider reaching out to a tax professional to help you plan an effective strategy for meeting your business-tax obligations.
From his days as a major league baseball player, Kevin Thompson understands the value of resilience, coaching, and discipline for going after a goal in any realm of life. Now the founder and CEO of 9I Capital Group, he’s translated his experiences to the financial sphere to help him win in business every day.
Born and raised in Fort Worth, Texas, Thompson developed a passion for baseball while at his first job: working in batting cages. There, he spent hours upon hours hitting baseballs and shaping his dream of donning an MLB uniform and playing for some of the most iconic sports franchises in America—a dream he eventually made a reality. “I played for the New York Yankees in 2006 and 2007,” he recalls. “I then finished the 2007 season with the Oakland A’s.” Afterward, he went on to play in the minor leagues for the Pittsburgh Pirates and Texas Rangers.
In these top-level competitive environments, Thompson learned some of his greatest life lessons, and not just in terms of baseball prowess. “There was no experience better than playing with the Yankees,” he says. “Top to bottom, it’s just an upper-class organization. The Yankees run like a business, and it taught me how to run a business.”
Though he certainly gleaned a lot from his coaches, it was his fellow players who inspired his future business acumen most. Reflecting on playing alongside greats like Derek Jeter and Mariano Rivera, he states, “The difference between the 1 percent and the rest of us is the mindset that when you have a bad day, you erase and do it again. Some of us might say, ‘Oh, that didn’t work, so I’m gonna start something else.’ But the greats say, ‘No, I’m sticking with the plan. It may not have worked today, but it’s going to work, so I’ll keep at it.’”
Thompson’s time as a major league baseball player, though cherished, was unfortunately short-lived. After a career-ending injury to his wrist, he was soon forced to retire from his dream sport.
Undeterred, Thompson dived headfirst into the world of financial management. He earned a bachelor’s degree in finance from the University of Texas at Arlington in 2011 along with several practicing licenses, including Series 7, 63, and 66 designations. Each of these allowed him to trade securities and ultimately help clients achieve their financial goals.
Swapping his baseball uniform for a suit and tie might seem like an out-of-left-field decision, but a profound earlier experience made this a natural transition. “When I was playing for the Pirates, I was making good money,” he says. Hoping to be responsible with his funds, he turned to investing. “I got involved with a company called the Stanford Financial Group, which turned out to be a Ponzi scheme. That led me into the financial world because I didn’t want my money involved in anything I didn’t understand.”
Thompson’s sports prowess served him well as he launched his new career and empowered his professional success in the years following. Reflecting on another tenet he learned on the diamond, he explains, “The details matter; I don’t care how small they are. With the Yankees, everyone followed the same minor details, from wearing their pants the same way to shaving, each of which helped get everyone aligned with the greater goal.” Thompson continued to apply this detail-oriented mentality as he began his own wealth-management business, but he focused on more than just wearing neat business attire. He notes that a precise approach is crucial when it comes to following compliance, knowing his clients, and performing lucrative business practices to a T.
Another essential business-leadership principle Thompson has kept with him is a commitment to doing his best every day. “Do the service within your company at a very high level,” he says, “and clients will tell somebody else about the quality that was presented to them. There’s nothing better than warm referrals from the clients who love you best.”
He conducts his marketing with similar diligence, labeling it as one of his central tools for securing client loyalty. For example, he sends weekly, monthly, and quarterly market updates to his contact list, makes monthly phone calls to loop clients in on important developments, and sends greetings on important dates like birthdays and anniversaries. “The number one reason people may leave their financial adviser is because they either had bad service or didn’t hear from that person at all,” he shares, going on to advise businesspeople to contact each of their clients up to five times a month.
Thompson notes that one of his predominant ongoing efforts involves inspiring others to succeed alongside him. “The African American community is underutilized in the financial sphere,” he says. “I want to change that. Me talking about topics like financial wellness helps represent our community in a different light: there are highly intelligent, ethical, and principled individuals working in this space, not just in athletics and art.” Thompson adds that economic challenges facing African Americans may leave some individuals feeling the greatest impact of recessions and other financial turbulence—but he has the skills and winner’s mentality to help all his clients ride that wave smoothly.
For more info, visit 9icapitalgroup.com
TAKE ACTION:
Consider how you might apply Kevin Thompson’s discipline, diligence, and client-focused conviction to your own business practices.
It’s a universally acknowledged truth that a successful business requires having strong relationships with clients and employees alike. And yet between the nuanced dynamics and boundaries at play and the often transactional aspect of interactions, building them can sometimes feel difficult and complicated. But it doesn’t have to be—simply utilize the same principles you follow, whether consciously or subconsciously, in your friendships and family bonds. Add the following five keys to your arsenal, and you’ll be better able to cultivate meaningful relationships throughout your business sphere.
At the heart of every enduring partnership—no matter if it’s with a loved one, a valued client, or a loyal employee—is trust. After all, no one may want to open up, repeatedly give their money, or provide their full efforts to someone they don’t believe has their best interests at heart. In your personal life, this trust is earned through honesty, reliability, and empathy, three qualities that are equally essential in business. When you demonstrate them to your clients, they’ll be willing to stick with you through thick and thin and even refer you to their friends and family. Likewise, your employees will be more compelled to give you their best work, support new initiatives and goals, and advocate for your brand.
Authentic communication is another cornerstone of strong relationships. I’m sure we’ve all seen a TV show or movie where there’d be no plot if the characters would just talk to each other, right? In business, this trait is less about being personally vulnerable, though, and more about demonstrating transparency and genuineness, such as by sharing your enthusiasm, goals, setbacks, and disappointments, being truthful about both yours and others’ mistakes, and following up with corrective action.
Internally, feedback that goes up and down the corporate ladder will foster collaboration, innovation, and a positive work environment, developing a culture of mutual respect that can even help the occasional miscommunication be managed more productively. And with clients, using clear and direct language while also being open about your limitations and addressing their concerns in detail will build trust and ensure that they feel like they’re being heard and seen as individuals.
Impressions of your integrity are heavily influenced by how well you hold to your commitments, so it’s essential to always give a good-faith effort to honor them. When your clients see that you’re dedicated to keeping your promises and solving their problems, they’re more likely to feel confident in your services and appreciated for their business. Similarly, when your employees see your devotion to their welfare and advancement, they may experience greater enthusiasm about their work and remain invested in your business.
A simple way to demonstrate your commitment is to stick to appointments. If you have a meeting, don’t reschedule it unless it’s absolutely necessary and respect start and end times. Further, remove distractions like cell phones so you can give your clients and employees your full attention. And if missing one is unavoidable, go back to the previous key: communicate with the other participants about it, expressing your regrets while accepting responsibility, explaining your reasoning, and offering a way to make it up to them.
Just as your friends and family rely on you to be there for them, your clients and employees expect stability and dependability from you. When it comes to customers, ensure that all interactions follow the same procedures, from initial contact to after-sales service, and maintain a coherent brand image across all platforms (website, social media, physical locations, etc.) to reinforce confidence and recognition. Just as important, continuously deliver high-quality products and services that meet or exceed expectations, being transparent with your pricing policies to avoid confusion and build trust.
In the same vein, your team will benefit from having consistent standards and expectations. Clearly establish your company’s mission, vision, and values and how they translate in the workplace, then repeatedly reiterate them and use them as the basis for regular and uniform performance reviews. When employees have a well-defined sense of how they should perform and see that everyone is held equally accountable, they will have more faith in you as a leader and develop into a stronger team.
Investing in your business relationships like you do with your personal ones will grow them in ways that benefit your company’s long-term success. Primarily, this involves making yourself visible and available. With clients, this may mean attending industry events, staying connected through social media, and arranging time to meet face-to-face. And for employees, periodically visit with different departments, provide a feasible avenue for connecting with you, and take time to show your appreciation—you’d be amazed at what a simply “thank you” can do.
If circumstances allow, look for opportunities outside of a work context to connect as well. Even national companies can host regional events where clients can come together with their families and friends to meet you and your employees in a casual setting for fun and games. Similarly, employees will appreciate being invited to a company-sponsored event like a weekend picnic or online game night or having the option to select a gratitude gift from a service like Snappy.
Remember, your clients and employees are people, too, with their own hopes, dreams, and challenges. By applying the principles of healthy personal relationships, you can position yourself as a valued adviser and leader to create strong business connections that lead to a thriving professional life.
TAKE ACTION:
Brainstorm for the best ways to nurture your relationships with your team members and clients.
ABOUT THE AUTHOR: Luke Acree is an authority on leadership, a lead-generation specialist, and a referral expert who has helped more than 30,000 entrepreneurs and small businesses grow their companies. He hosts Stay Paid, a sales and marketing podcast, and has been featured in Entrepreneur, Forbes, and Foundr.com.
