Concierge CPA April 2019
April 2019
8221 Brecksville Rd, STE 205 Brecksville, OH 44141
Borbala@ConciergeCPAs.com
(440) 340-1030
ConciergeCPAs.com
Who makes money on social media? W homakes money on social media? “The only people whomake money on social media are people who sell social media marketing services.”
Even Google uses traditional marketing. I always find it funny when I get a postcard in the mail with an offer to advertise online. Traditional advertisingmust still be relevant; why else would the largest search engine and biggest online ad platform sendme postcards? That quote I found so ridiculous years agomight be closer to the truth than I realized back then. I think online marketing has an important supporting role. Most potential clients check your website and look at your social media profiles. Not
I was fresh out of college when I read this line in one of those“how to build a business”books. I quickly looked up the author, andmy suspicion was confirmed that such a statement could only be made by someone who’d livedmost of his life in the previous century. This statement seemed so ridiculous and out of touch with today’s trends that it stuck withme. We are in a new paradigm in which the top-four marketing strategies are social media, online videos, blogging, and search engine optimization. The internet has changed the business environment somuch that people who are still reluctant to adapt to the online model are quickly going out of business. I’ve been contemplating this question for quite a while. In order to get a better understanding of how business is done in the real world, I started observing what business owners do—not what they write about. Luckily, I had the privilege of working with quite a few startups that grew into sizeable businesses, and as an accountant, I saw how they spent their marketing budgets. The types of businesses I work withmight bias my opinion, but I was surprised by the fact that the majority of business comes from face-to- face meetings, networking, and referrals. Here is the perfect example of why you have to watch what people do, not what they say: I used to work with a person who owned a successful digital marketing agency. He managed online ad campaigns and charged clients thousands of dollars for writing daily social media posts on their behalf. One day, I looked at his own social media profile and found that he hadn’t posted in weeks. I found this to be hypocritical, so the next time I saw him, I had to ask about his source for new clients. Without hesitation, he toldme that speaking engagements, networking, and referrals are the best strategies tomeet potential clients. Not realizing the irony of his answer, he continued by sharing that building trust and selling high value services is best done face-to-face. Is this new paradigm fully realized, though?
having an online presence is a big negative these days, but spending a fortune on Facebook posts is a big waste of money for most of us.
I’mnot a marketing expert, so take my advice with a grain of salt, but it seems like the basics of marketing don’t change:
1. Offer something of value (your service or product). 2. Identify people who would benefit from your service. 3. Find a way to get in contact with these people. 4. Make an offer. 5. Repeat steps 1–4.
It sounds simple, right? Running a business is muchmore complicated than repeating four steps and counting the profits. On top of marketing, you have to worry about keeping your clients happy, delivering your services, hiring employees, dealing with administrative tasks, bookkeeping, taxes, payroll, expenses… I could go on. Don’t let your dreamof entrepreneurship turn into a chaotic nightmare. If you feel overwhelmed and would appreciate an outside opinion, give us a call.
–Laszlo Szilagyi, CPA
1 (440) 340-1030
No FACEBOOK LIVEs this month, but you can rewatch any of the nine earlier episodes and other video posts. Search for @ConciergeCPAs. BORBALA’S SCHEDULE Weekly Live Roundtable Calls Events We Go to or Host April 1: Open house at the Hileman Group April 4: Hosted a half-day meeting with the Consul General andTrade Commissioner of the Consulate General of Hungary in Chicago April 11: EOA Luncheon
•April 3 •April 4 •April 11 •April 24 Client Advising and Coaching Days To schedule a time, go to: Borbala.AcuityScheduling.com Prospective client inquiries: Borbala@ConciergeCPAs.com •April 6 •April 10
is an attraction for customers. We have people who are coming to Van Aken just for Luster. But, we also have plenty of customers who are at the Market Hall for other reasons and just pop in! Q: You’ve been open for four months now. Which part of running a business do you find the hardest? And the most enjoyable? A: We love shopping for our store. It is a lot of work but very exciting. It is always a little bit of a guessing game to see if what we pick will be successful in the store. But we are learning and getting better and better with each shopping trip. The hardest part is scheduling. We work very hard to make sure that we both have plenty of time in the store and working on the business. But we balance that with being able to pick up our kids from school a few days a week and being available for our families. Q: Can you share one or two lessons that you learned since your idea stage that can help fellow startups? A: No. 1: Anyone that can help you, serve as a mentor, or give some piece of advice for your business …meet with them, have coffee, take notes. Luster, a Gift Boutique April 11: Annual benefit fundraiser of“The Treehouse Ohio” April 14-22: Borbala is in Japan—without email and phone April 15: Tax Day! April 16: Day after Tax Day, the office is CLOSED April 25: EOA accountability meeting in Independence, OH April 26: Lunch with the representatives of the Chinese and Parma Chambers of Commerce
Client of the Month
Tamar Brecher and Robin McCann, owners of Luster, have been working for almost two years to bring their creative gift boutique to life. The spirit of Luster was formed in wanting to give other working women and mothers a place where they could cover all their gift purchasing needs. Whether it is a gift for a friend, family member, or a treat for yourself, Tamar and Robin strive to create a sanctuary for your retail experience by bringing together sought- after national brands as well as one-of-a-kind pieces from local artisans. The historic Van Aken district in Downtown Shaker Heights was the ideal spot to start and grow their business. Q: Some say that retail is dying, and you can only make it if you have an online store. What’s your experience so far, and how do you attract visitors? A: We did extensive market research prior to opening our store. We found that brick-and-mortar is actually on the rise again. People are looking for unique experiences when they shop. We all shop on online, even we do ... we are busy working moms. But when we are looking for unique gifts for ourselves or other people, we want to be able to touch the
merchandise and interact with others.
No. 2: Plan for setbacks. They always happen.
Our unique location
No. 3: If you are motivated, don’t let anyone crush your spirit. Work hard and stay focused on the endgame. Q: Thank you, Tamar and Robin, and best of luck!
inside the Van Aken District Market Hall
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Are You Running Your Business or Is Your Business Running You?
Jeff Hoffman and David Finkel’s ‘Scale: 7 Proven Principles to Grow Your Business and Get Your Life Back’
If you’re a business owner, you’ve likely heard the phrase“scale your business”more times than you can count. Since growth tends to be the primary goal for the vast majority of companies, entrepreneurs are constantly tasked with the struggle of finding the most efficient and effective ways to achieve it. Oftentimes, though, even if those entrepreneurs find innovative methods through which they can expand their clientele base or sell more products, they are forced to navigate the emotional andmental minefield of addingmore work to their already full plates. Jeff Hoffman, a serial entrepreneur and former CEO in the Priceline. com family of companies (PricelineYardSale), and David Finkel, CEO of Maui Mastermind, a business coaching company with thousands of clients worldwide, claim that there is a surprising secret to growing your business without overextending yourself: reduce the overall reliance on you. While it might sound harsh, Hoffman and Finkel pose what they refer to as the“hit by the bus”test to encourage entrepreneurs to understand how crucial it is to delegate.“We want to ask you an extremely important question; one that very few business owners ever allow themselves to consider,”they propose,“because often, the answer is too painful to contemplate. If youwere hit by a bus tomorrow (or otherwise incapacitated), what would happen to your business?”Understandably, most business owners admitted that their company would go under within 30 days without them at the helm.
As CEOs themselves, Hoffman and Finkel offer a creative and successful blueprint to help entrepreneurs rapidly grow their existing businesses, which simultaneously allows them to gainmore personal freedom. Their three level action plan, based on their own experiences starting, scaling, and effectively exiting frommultiple successful companies, helps curious readers determine the best strategy for growth—both professionally and personally. Furthermore, they provide practical
advice on how to execute this action plan in the face of conflicting demands andmultiple responsibilities.
Borbala with Jeff Hoffmann, founder of Priceline, at the March 15th EOA (Entrepreneurs’ Organization Accelerator) luncheon in Cleveland, OH
By breaking down the path to scaling into seven principles, any owner can increase profits and their own freedom. Are you running your business, or is your business running you? Grab a copy of this book to find out!
Opening Day Hamburgers
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12–16 pickle rounds 4 small leaves iceberg lettuce 4 1/4-inch-thick yellow onion slices 1 teaspoon vegetable oil Salt and pepper, to taste Condiments of your choice
INGREDIENTS •
1 pound ground chuck, 80 percent lean 4 soft, white hamburger buns, split 4 1/4-inch-thick tomato slices
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With no fancy sauces, no frills, and no cheese, these all-American burgers are perfect for the start of baseball season.
DIRECTIONS 1. Lightly grease a small nonstick skillet with oil. Heat over medium-high. 2. While heating, gently shape meat into four patties 3 1/2 inches in diameter. Be careful to handle the meat as little as possible to prevent tough burgers. Season liberally with salt and pepper. 3. Sear patties on each side, about 1 minute per side. Reduce heat to medium-low and continue cooking until desired doneness, about 1 more minute per side for medium-rare, 2 more per side for medium-well. 4. Let meat rest for a minimum of 3 minutes. 5. To assemble, place patty on bottom bun and top with tomato, pickles, lettuce, and onion (in that order). Spread condiments on top half of bun and place on top of onion. Serve.
Inspired by Saveur Magazine
3 (440) 340-1030
INSIDE
8221 Brecksville Rd, STE 205 Brecksville, OH 44141 (440) 340-1030 Who Makes Money on Social Media? Page 1 Client of the Month: Luster, a Gift Boutique Page 2
Are You Running Your Business or Is Your Business Running You? Page 3 Opening Day Hamburgers Page 3 ConciergeCPAs.com Borbala@ConciergeCPAs.com
Always in Fashion
S he’s a long-haired, European, exotic beauty. She lives a life of glamour and luxury that most of us can only dream of. She has 300,000 followers on Instagram. She’s earned $3 million in royalties and endorsements. She’s launched fashion lines and been the subject of two books. Oh, and she has absolutely no idea how much she pays in taxes, and she wouldn’t care if she did. Who is this gorgeous creature? Is she the latest supermodel sensation, posing for the Sports Illustrated swimsuit cover on a deserted Croatian beach? Is she Kim Kardashian’s newest best friend? Perhaps she’s about to star in the next James Bond movie? No, no, and no. Her name is Choupette, and until fashion icon Karl Lagerfeld died last month at age 85, she was his ... cat. She’s also Lagerfeld’s heiress, which may make her the richest cat in the history of her species. Lagerfeld cut an instantly recognizable figure with his trademark white hair, black sunglasses, fingerless gloves, and starched collars. He’s credited with breathing life back into France’s House of Chanel by revamping their ready-to-wear line after the death of founder Coco Chanel. His efforts earned him a fortune estimated at $200 million. But he died childless with no partner and no obvious heir. Enter Choupette, who gets enough money to pay for all the Little Friskies she can eat for the rest of her life! Leaving money to pets is more common than you may think. It’s not a great tax-planning move, because bequests to pets — unlike those to spouses or charities — are subject to estate tax, which starts at 40 percent on amounts over $11.4 million. But plenty of people love their animals more than their family members. Michael Jackson left $2 million for his pet chimp, Bubbles. And hotel heiress Leona Helmsley, who served 19 months in prison for tax evasion, left $12 million to her dog, Trouble. (That’s more than some of her grandchildren got!) Obviously, the money doesn’t go to the animals. (Can you imagine standing in line behind a cat trying to use an ATM or writing a check to pay for groceries?) It goes to a trust, with an actual person controlling the money for the benefit of the
animal. In 2016, Minnesota became the last state in the country to authorize pet trusts. Many of those statutes even dispense with the usual “rule against perpetuities” limiting them to 21-year terms, making them appropriate for longer-living animals like horses or parrots. Sadly, there’s one complication standing in the way of Choupette getting her paws on her inheritance. She lives in France, where pets are property and can’t legally inherit anything themselves. (Has PETA been notified?) They can’t even benefit from a trust. So Lagerfeld would have to leave Choupette’s money to a nonprofit organization or a trusted friend to take care of her. And that, in turn, brings up one final question: Who inherits Choupette’s fortune when she dies? France has the highest inheritance tax in Europe, with rates running up to 60 percent. And while cats may always land on their feet, they can’t hire estate-planning attorneys. (While we’re on that topic, does having nine lives mean Choupette has to pay the tax nine times?) We realize you haven’t earned millions in royalties from licensing your image. But if you had, you’d probably want to keep as much of it as you could. So call us, and discover just how stylish tax planning can be!
–Liao Xiong Staff Accountant, Concierge CPAs, Inc
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