Focus on South Carolina
South Carolina has been gaining a lot of attention recently due to its presidential election primaries. But there are other aspects of the state that are interesting as well. The “Palmetto” State is known for its shoreline of beaches and islands, in addition to its rich history of plantations and involvement in the Civil War. Its warm weather and green surroundings are not the only things encouraging more people to migrate to the state. The beautiful town of Kiawah Island is a personal annual family vacation spot of mine as well.
Business Climate
South Carolina is a beneficiary of foreign direct investment that boosts its job growth. The State has attracted marquee companies to invest manufacturing facilities in South Carolina through its ability to provide suitable locations, existing infrastructure and a skilled workforce.
The State employs a technical college system and the Apprenticeship Carolina program, which allows students and young adults to apprentice with participating companies across a diverse array of industries ranging from advanced manufacturing to hospitality and health care. A few of the companies that have invested in the state within the last decade are: Boeing, BMW, Volvo Cars and Daimler Vans.Read more
Rainmaking - Be a Joiner!
It will come as no surprise to most of you that I am involved in many different networking groups. Even if you don’t really know me, you can quickly peruse my website and see that I belong to the National Association of Women Business Owners (“NAWBO”) - I’m the current President of the Silicon Valley chapter; Accounting and Financial Women’s Alliance (“AFWA”) – I served as the National President; ProVisors and Vistage, among others. I’m not just a dues paying member, I truly get involved in the organization, often at the Board level. Why? I believe that committing to an organization is about surrounding ourselves with other smart people who have similar purposes. And through those networking efforts, we make friends, business colleagues, and hopefully ultimately generate some business. I also believe that we can’t expect to get business immediately from being part of networking groups. Sure – it happens sometimes. But, as with so many things in life that are worth having, it’s about building a relationship first, and then being patient enough to ask for the work later.
Identify Your Target Market
In my recurring webinar series, “Jumpstart Your Rainmaking”, there’s a section on identifying your target market and then determining where to find them. The latter is important because if we know where they hang out (either physically or virtually – maybe via social media), we can put ourselves in the same room with the people who are in our target market. It is then up to us to dazzle them with our charms! As we work through that section of the training, I’ve realized that this is often the hardest part for people to get their arms around – figuring out WHERE the target market is. But it doesn’t have to be that hard, as long as you’ve defined your target market.
Where Are They?
For example, let’s say you are a CPA who wants to focus on medium sized closely held businesses in the construction industry. So, you might research organizations such as Chambers of Commerce, or community groups like the Rotary. Those organizations include many small to medium sized businesses. Or, go online and check out industry groups – either nationally or locally based. There may also be gender based industry groups that feel like a fit. Trust me – there’s a dues based organization for almost everything! And they are always looking for new members. Active members build good groups. And the more you can volunteer, perhaps by serving on the board or on a committee, the more exposure you will get to the influential members of the organization, and the more likely you’ll be to turn your networking time and money into success.
The "Right" Group!
That said, I also encourage people to attend as a guest (perhaps a few times) before signing on as a member. You want to make sure it’s the right fit. As I mentioned earlier, it’s an investment – referrals likely won’t occur overnight. So you need to be willing to investment the time. Make sure you like the people. Does the board seem competent? Are they friendly and welcoming? At events, are people smiling and having fun? Do they invite visitors into conversations, rather than being “cliquey”?
If you do your homework and experiment with a few groups before committing to your 2 or 3 “regular” groups that meet monthly (or even weekly), you’ll find a group that fits and that is likely to become a place for lead generation – once you take the time to build the relationships. You might even recruit some friends to join your new group as well. Remember the old adage: the more you put in, the more you receive. I wish you happy joining and happy networking.
Monika Miles is President of Miles Consulting Group, a firm specializing in multi-state tax consulting for middle market businesses. Clients include technology, manufacturing, software and SaaS based companies doing businesses across state lines. Miles Consulting Group assists them in determining the sales tax and income tax ramifications of creating a taxable presence in a state and how to address these issues with the various states. When she’s not assisting clients with multi-state tax issues, she passionately shares Rainmaker strategies with other professional services firms. Click here for more information.
[State Tax Series] SaaS Companies & Multi-State Tax Issues
Have you been following our series that chronicles how state tax legislation applies to various technology industry niches? So far we’ve covered medical device companies and software companies; today the topic is Software as a Service (or SaaS) companies.What multi-state tax issues do they face when it comes to nexus, sales and use tax, state tax legislation and more? Keep reading to find out.
An Overview of SaaS Companies
SaaS is defined as, "A way of delivering applications over the Internet - as a service. Instead of installing and maintaining software, you simply access it via the Internet, freeing yourself from complex software and hardware management."Read more
Understanding Voluntary Disclosure
State taxes can be daunting. There are so many ways companies can trip into nexus creating activities in multiple states and suddenly find themselves in a compliance nightmare. I see this situation often in my practice. Many of my clients are in the technology industry. Silicon Valley moves at an alarming speed (well, except for Highway 101 – but that’s another story!), and companies move people and product into multiple states just as quickly – sometimes without even realizing the ramifications. State taxes – including sales tax and income tax are often an afterthought, but then come back and rear their heads when a company is getting its next round of funding or needs a financial statement audit. It is at this point that people usually take notice of the state tax situation. Why? Here’s a scenario:Read more
[State Tax Series] Software Companies & Multi-State Tax Issues
A couple of weeks ago we started a series about the nuances of state taxes as they apply to various technology industry niches. Today we continue by focusing on software companies and multi-state tax issues they face including nexus, sales and use tax, state tax legislation and more.
An Overview of Software Companies
Software companies make up a significant part of the technology sector. Software refers to, “The programs used to direct the operation of a computer, as well as documentation giving instructions on how to use them.” The software industry has certainly changed over the years – from the days of companies selling software on disks or other media, to today’s digital downloads of software, and even software as a service (SaaS), which is becoming very prevalent.Read more
Focus on Montana
This month we continue our focus on another majestic state, Montana. The state is rich in natural resources and beautiful landscapes. The majority of this state has not been industrialized and remains close to nature. Montana is the 4th largest state (land size), yet it is one of the least populated states in the country. The state has a lot more to offer than just its beautiful scenery. When you finish reading this blog, you might think about living in Montana.
Business Climate
According to the 2014 census, its population of 1.024 million people is the 5th smallest in the nation and is less than Rhode Island’s (1.055 million). On the other hand, Montana is abundant in land and natural resources, befitting of its nickname, the “Treasure State.” The majority of its land is dedicated to farmland and agriculture. It is the 3rd largest producer of wheat in the US generating approximately 11% of the total wheat production in the country. In addition to crops and livestock, Montana also offers mining as one of its key industries.Read more
Rainmaking - Celebrate Successes
I don’t know about you, but I love to celebrate special occasions. Birthdays, anniversaries and holidays are all good excuses for me to buy gifts for people, go out for a nice dinner, and/or share a good bottle of wine or bubbly. (Life’s too short to drink bad wine, after all!) I’m also a big believer in celebrating successes outside of those kinds of events. You got a good review or promotion at work? Cheers.
What does that have to do with Rainmaking? A lot! Rainmaking, in theory, and the way I share my knowledge around it, is about continually building relationships with people. In turn, those relationships, cultivated with people who can drive business to you by either being in your target market or knowing people who are (i.e.; your referral partners) will ultimately turn into revenues. It’s not easy to build relationships that lead to money at your door. People have to know you, like you, trust you and have faith that you will do a great job for them or their clients before they’ll shower you with money! (Or even sprinkle a little your way.) So, when your hard work around building relationships leads you to a sale or other success in your marketing effort – celebrate it! And reward yourself.
My Jumpstart Your Rainmaking series includes a system which helps track “touches” – the activities you do during the month to interact with people. Those touches will ultimately lead to revenue events down the road. Maybe not each one, but many of them. I track the ones that do turn into revenue during the year. And every time one of them turns into a project for me, I celebrate it. A new client is something to be celebrated. We work hard to gain a new client. So, let’s celebrate it and be grateful. Otherwise, it’s really just a job. We’re in the people business – so let the universe know (in a small way, of course) that you’re grateful for the new work. Thank those that helped you to land the deal. Thank the new client for trusting you with their project. Thank your co-workers that helped lend their energy. And then, give yourself a pat on the back for all of your own efforts. And if landing the client helped you hit a big milestone, really celebrate!
How? In your goalsetting for your revenues this year, think about setting a few milestone goals, that, if you hit them, will involve gifts for you. For instance, you might reward yourself for the first project of the year that brings in at least $10,000. Take yourself out to dinner. If your first quarter goal was to sell 5 new projects – buy yourself some new (fabulously expensive) shoes if you hit 6 instead. Sure, it’s a mental game. But it’s also a trigger. Every time you wear those shoes, you might think about making that sale – and how good it felt! Obviously this is a self-motivational thing – and each of us gets motivated in different ways. So, it doesn’t have to be shoes or dinners. But think about something that would be a nice reward for you after an accomplishment. And allow yourself to celebrate the successes so that you can remember how good it feels – on those days that you may not be able to close that deal that you wanted.
I’ve got to run. I’m having a fabulous dinner in Las Vegas tonight – to celebrate a recent victory in my business! Cheers!
[State Tax Series] Medical Device Companies & Multi-State Tax Issues
As you know, at Miles Consulting Group we’re all about helping companies approach multi-state tax issues such as defining nexus, determining the taxability of various products and services, and complying with state income tax and sales tax regulations and more. State tax legislation affects companies in a wide variety of ways, which is part of what makes the topic so complex.
In this brand new series, we’re going to explore the nuances of state taxes as they apply to various technology industry niches. After all, we are based in Silicon Valley, and have had the privilege to work with some of the nation’s most innovative companies. Today’s focus is medical device companies!
An Overview of Medical Device Companies
This subset of the technology industry actually covers a fairly large spectrum. The FDA defines a medical device as, “An instrument, apparatus, implement, machine, contrivance, implant, in vitro reagent or other similar or related article, including a component part, or accessory, which is:
- Recognized in the official National Formulary, or the United States Pharmacopoeia, or any supplement to them,
- Intended for use in the diagnosis of disease or other conditions, or in the cure, mitigation, treatment, or prevention of disease, in man or other animals, or
- Intended to affect the structure or any function of the body of man or other animals, and which does not achieve its primary intended purposes through chemical action within or on the body of man or other animals and which is not dependent upon being metabolized for the achievement of any of its primary intended purposes.”
Rainmaking – And the Elephant in the Room
Happy New Year! Hopefully my readers are in full swing thinking about their revenue goals and rainmaking plans for 2016. Many of you in the tax preparation world are taking those last few deep breaths, doing a little networking and getting prepared for the busy season onslaught. Those of you not in tax are also busy with year-end financial reporting and possible new projects for the new year. Unfortunately, busy season and busy season mindset is not conducive to consistently generating revenue and staying on a plan for rainmaking in the upcoming months. I’ve talked before about a consistent plan. And coming off of that plan for 2 ½ months isn’t a great option.
The Elephant
The elephant in the room around this is our time restraints. It just stands to reason that during busy times we are not as focused on generating more revenue. Our mindset is that we barely have bandwidth to do the work in front of us in the next few weeks – let alone taking on additional work. But, it’s also important to remember that the work we do today on rainmaking activity will bring us revenue down the road. And, consequently, if we don’t engage in some outreach activities, we may be short of our revenue goals later in the year. Good rainmakers are always looking out for the next project, because it’ll be nice to have some revenue in June and July too! But that hourglass sits there with its sand draining, and you let yourself off the hook regarding your outreach activities because it is busy season.
Think Differently
If you want to be a rainmaker today and in the future, you have to think differently. Once you’ve practiced it and you’re really at the rainmaker level, you’ll be bringing in business and delegating it. Obviously there’s a balance, but you will be viewed differently within the firm if you are generating sales rather than simply doing work. If you are a sole proprietor (and not reporting to someone else about your Rainmaking prowess), and you have more work than you can do – think about hiring someone. This is really where you need to ask yourself about your motivation. Do you want to take the next step and be viewed as a Rainmaker in your firm or for yourself? This is where the rubber meets the road.
So, yes, I’m suggesting that even when you’re at your busiest – carve out some time to intentionally go to meetings and do some networking. Pick your events carefully so you don’t waste your valuable time. If you are a tax person, sure, you’ll go to fewer events in February and March than you will in May or June, but enough to keep the networking touches going. Also, keep in mind that you can do some networking with existing clients during your one-on-one tax return planning meetings and begin planting the seeds for follow up projects in a few months. The key is, don’t take a complete break from rainmaking activities during busy season because you’ll find yourself behind in May and June. You might even find that getting out of the office a little bit during your craziest time gives you some needed energy from some people that are NOT in “busy season mode”.
In short, as you think about your Rainmaking strategy for 2016, make sure you build in small chunks of networking time even during your busy season so that you don’t get too far behind. That elephant is going to continue to take up space if you let him.
Permanent R&D Credit
It’s nice to start 2016 with some good tax news. Right before 2015 ended, the US Congress passed a significant bill that seeks to help American taxpayers keep their money and grow our economy. Last December, Congress passed a bill, referred to as “Protecting Americans from Tax Hikes Act of 2015” (PATH). For many years, there have been essential tax credits and benefits that expired every year with no certainty of extension. With PATH, that uncertainty goes away as it permanently extends more than 20 tax relief provisions.
The bill includes provisions for individuals, families, and businesses. A major provision that we want to focus on is the extension and modification of the R&D credit which is stated in section 121 of the bill. To see the entire bill, click here.
The provision permanently extends the research and development (R&D) tax credit. For years, the R&D credit had to be renewed by Congress annually (and some years wasn’t at all). Read more
