Small Business Profit Maximizer!

Mobile Devices Have Hit Critical Mass

 

Almost every prospect who contacts me has already Googled me, checked out our blog, and visited our firm website before they ever call me to set-up the initial appointment.  This is a sure sign that these technologies are well past critical mass.

 

I use the term "critical mass" to mean that your best customers are expecting the firms they deal with to have that particular product, technology, or service available.  And, they will only consider buying from those places that do.

 

In my example, I can attest to the fact that if I did not have a strong presence on Google, did not have a blog, and did not have a good website, I would most likely not even be considered by these new prospects.

 

Lesson:  Once a technology hits critical mass, the business owner ignores it at their own risk!  They learn how to implement it into their business or they slowly start losing ground to competitors who have learned how to use the technology to reach their customers.

 

Alex Lerch, in his blog post titled "Why You Need A Mobile Website This Year" (www.linkedin.com/pulse/why-you-need-mobile-website-year-alex-lerch), bluntly states:

 

Now is the time for businesses to become very aware of the need to target their marketing towards mobile device users, as they are rapidly starting to dominate the share of internet and search engine use.

 

He goes on to list the following “cold hard facts”:

• 58% of American adults have a smartphone with internet capability
• 32% of American adults have an e-reader
• 42% of American adults have a tablet computer
• 29% of cell owners describe their cell phone as "something they can't imagine living without."
• 34% of cell internet users go online mostly using their phones, and not using some other device such as a desktop or laptop computer.

 

And these trends are not slowing down.  In Alex Lerch's article he states that Apple sold 39 million phones in the third quarter of 2014 alone.  In the fourth quarter of 2014 Apple sold another 39.2 million iPhones and 12.3 million iPads. (www.theverge.com/2014/10/20/7022335/apple-q4-2014-earnings)

 

The problem?  While 34% of users find your website using their phone, only one out of 10 small business websites are optimized for mobile.

 

I agree with Mr. Lerch that, "Mobile dominance in the market is not a trend, but a change in course for all online marketing.  An effective website today is not the same as it was three years ago.”

 

In my article titled “Is Your Business Growing or Dying?” I listed six things that successful businesses do differently from those businesses that are struggling to survive.  Two are pertinent to this topic:

 

• Successful business owners stay current, and often lead the way, on tech trends.
• They also understand how these changes in technology will affect how their customers interact and buy from them.

 

2015 is a great time to gain a competitive advantage by optimizing your web content for mobile devices.  Check out future articles where we will cover how to accomplish this in more detail.

Will the ObamaCare Penalty Affect My 2014 Tax Return? Part V

How does an individual file for an exemption?

There are two ways to request an exemption. 

The first way is through the state Health Insurance Exchange.  These exemption requests will be reviewed by the residing State exchanges.  If the exemption is approved, the state exchange will issue an exemption letter in addition to notifying the IRS.  State exchange exemptions should be used by those seeking an exemption for religious or hardship reasons.

The IRS will approve exemptions for those who cannot afford coverage, have coverage gaps, non-citizens, and taxpayers with a low income household.  These exemptions should be claimed by taxpayers on their annual income tax returns using Form 8965.

Exemptions for taxpayers who are Native American tribe members, part of health care sharing ministries, or in prison may apply for an exemption with either the IRS or their state exchanges.

Will the ObamaCare Penalty Affect My 2014 Tax Return? Part IV

Who is exempt from paying the Health Insurance Penalty for not being insured?

Just because you don’t have insurance doesn’t mean that you will have to pay the penalty.  The law provides many ways to be exempt from any potential fines due.  Since 2014 is the first full year of ObamaCare, the rules for claiming a personal exemption seem to be very lenient. Many of these were subsequently added after the computer difficulties and inconveniences experienced during the original rollout.

Here is a list of Affordable Care Act personal penalty exemptions for 2014:

• If you are not required to file a return because you are below the threshold for filing a tax return.  (In English: you don’t make enough to file a return.)
• If you are uninsured for less than 3 full months.
• If the price of your insurance premiums exceeds 8% of your annual income.
• If you are not legally in the United States.
• If you are a member of a recognized health care sharing ministry.
• If you are a member of a federally recognized Indian Tribe.
• If you are eligible to receive services through an Indian Health Services provider.
• If you are incarcerated. 
• If you are an expatriate living outside of the U.S. for at least 330 days of the year.
• If you are a resident of a U.S. territory (not living in D.C. or any of the 50 states).

Hardship exemptions can still exempt you from the penalties if you don’t fit into any of the above categories.  Hardship exemptions are those factors that would affect your ability to purchase health insurance coverage.  The following are considered valid circumstances affecting your ability to purchase health insurance coverage:

• If your insurance provider dropped your 2014 plan during 2013.
• If you had medical expenses you could not pay during the previous 24 months.
• If you were ineligible for Medicaid because your state didn’t expand the program.
• If you filed for bankruptcy sometime in the last 6 months.
• If you had substantial property damage from fire, flood, or other disaster.
• If you received a shut-off notice form your utility company. 
• If you were evicted during the past six months or faced foreclosure or eviction.
• If you were homeless during the year.
• If you were a victim of domestic violence.
• If you experienced the loss of a family member during the year.
• If you had an unexpected expense increase from caring for a disabled, sick, or aging family member.
• If you appealed a decision which later allowed you to enroll in a health insurance plan but were unable to do so while you waited for determination.

Will the ObamaCare Penalty Affect My 2014 Tax Return? Part III

Health Insurance Tax Penalties: How will they be determined and paid?

The first penalties will be reported on your 2014 tax return that will be filed in 2015.  The penalty will be determined by calculating the greater of either a flat dollar amount or a set percentage of income.  The annual penalties are phased in from 2014 to 2016 as follows:

• 2014: Greater of $95 per adult and $47.50 per child under age 18 (maximum of $285 per family) or 1% of income over the tax filing threshold.

 

• 2015: Greater of $325 per adult and $162.50 per child under age 18 (maximum of $975 per family) or 2% of income over the tax filing threshold.

 

• 2016: Greater of $695 per adult and $347.50 per child under age 18 (maximum of $2,085 per family) or 2.5% of income over the tax filing threshold.

 

If the penalty applies for less than a full calendar year, the penalty will be pro-rated on a monthly basis.

Will the ObamaCare Penalty Affect My 2014 Tax Return? Part II

What qualifies as Minimum Essential Coverage?

 

In order to avoid the tax penalty, each person in your family must have "minimum essential coverage”.  A person will be considered to have minimum essential coverage for any month they are legally enrolled in one of the following types of coverage for at least one day:

• An employer group health plan
• An individual health insurance policy
• A government plan such as Medicare, Medicaid, Children’s Health Insurance Program (CHIP), TRICARE, or veterans coverage
• Student health coverage
• Medicare Advantage plan
• State high risk pool coverage
• Coverage for non-U.S. citizens provided by another country
• Refugee medical assistance provided by the Administration for Children and Families
• Coverage for AmeriCorp volunteers

All the plans listed above will qualify as having minimum essential coverage and thus will allow you to avoid the tax penalty.

Will the ObamaCare Penalty Affect My 2014 Tax Return? Part I

I have received tons of questions from clients, friends, and families about how much the ObamaCare penalties are.  I am seeing an amount of confusion and worry unsurpassed by any other tax law change in my memory. 

So let’s start with the basics.

The individual mandate is the regulation that requires everyone to have health insurance that covers the “essential benefits”.  If you do not have health insurance, you will be charged a tax penalty.  The IRS has issued regulations that cover in detail the following ObamaCare questions:

 

 

1. What qualifies As Minimum Essential Coverage?
2. How will the Health Insurance Tax Penalties be determined and paid?
3. Who are the individuals exempt from paying the Health Insurance Penalty for not being insured?
4. How does an individual file for an exemption?

 

Each of these topics will be covered in detail in future articles.

How Will 2015 Be Better Than 2014?

 

Results don’t come from wishes, hopes, and resolutions.  That is why 90% of New Year’s resolutions are dropped before the end of January.  Every gym owner can tell you that most of their new members will be gone by February.

This is true in business, too.

What are you going to do TODAY if you are not happy with where your business is?

Which leads to the number one problem facing business owners who are trying to create their dream business—Lack of a plan!

Dream businesses are also not built with wishes, hopes, and resolutions.  Just like losing weight and getting back into shape, creating your dream business requires more.

Success comes from being committed to change, setting a goal, and coming up with a plan to reach that goal.

But even that isn’t enough!  Success in reaching your goal almost always requires that you have a guide and a mentor who has experience reaching the same goals.

I was committed to losing weight and getting back into shape but failed until I purchased a monthly plan from Weight Watchers.  Now results haven’t been as fast as I would like, but for the first time, I am seeing results!

I have been committed to creating online coaching products, but struggled to finish them until I hired a coach who has helped hundreds of businesses launch their products.

Which finally leads to my point! (Pause while I wait for the cheering to stop…)

I can’t help you with the commitment.  But I can help you flesh out your goals, create a plan for reaching them, and provide you with the framework for executing your plan.

Stay tuned for more information about 2015 Jumpstart Your Business, guaranteed to double or triple your profits while giving you back control of your business.