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BUSINESS
NEWS & TRENDS
Mountain Views News Saturday, August 25, 2012
BUSINESS TODAY
The latest on Business News, Trends and Techniques
Legal Insights by Noah Green1
1 Noah Green lives in Sierra Madre and works as an attorney handling business litigation at the Ryan Law Firm in
Pasadena, CA. He can be reached by e-mail at ngreen@ryanattorneys.com, or by telephone at (626) 568-8808.
THE MODERN REALITY AND
ADVANTAGES OF THE
BANKRUPTCY CODE
When used in everyday conversation the word “bankruptcy”
carries with it connotations of poverty, incompetence, and failure. The
idea that bankruptcy should be avoided at all costs is rooted deeply in our
culture and that those who are “bankrupt” should be ashamed.
Yet bankruptcy has come a long way since the days of the debtor’s
prisons of the nineteenth century. The right to file for bankruptcy is included in the Constitution,
legislated by Congress, and interpreted by the federal courts. Moreover, as America is still slowly
crawling out of the worst recession in 80 years, many more of your countryman have found themselves
declaring bankruptcy over the last few years than one might realize. As an attorney who has been to
bankruptcy court many times I can say that the quality of the courts, lawyers, and litigants is above
and beyond what you may otherwise expect. In other words, it is all about money and business and
the people there just want to fix their finances and are smart enough to take advantage of the laws
created to help them do so.
So who typically files bankruptcy? Individuals and businesses who find themselves in the following
situations:
Homeowners who have fallen behind on their mortgage but who may have the resources necessary
to catch up if given enough time. These homeowners typically try to get a loan modification first,
but their lender is unwilling to cooperate. Under Chapter 13 of the bankruptcy code, if such
homeowners are able to get a come up with a plan to pay off the outstanding balance over three-to-
five years they can get what amounts to a court-ordered loan modification. In some cases, the debt
owed on a second mortgage may also be discharged entirely or “stripped” if the home is worth less
than the value of the first mortgage, i.e., it is “underwater.”
Business owners who cannot work out repayment plans with their creditors but who may be
able to repay their debts over time and just need a “timeout” to restructure should consider filing
under Chapter 11. This Chapter is also available to real estate investors with multiple vacant rental
properties who need to prevent foreclosures while they renovate and re-rent or sell some of their
properties.
Individuals or businesses who are simply too far behind to ever catch up on their credit cards,
medical bills or other debts, and who simply need a “fresh start” should file under Chapter 7. For a
business filing under this Chapter it generally means that it will be dissolved. Yet this will allow its
owners to possibly start another business while disposing of the debts and assets of the old one. On
the other hand, individuals who file under Chapter 7 are generally be able to keep their personal
property (other than a home with defaulted mortgages) while having their outstanding debts
discharged, with the exception of certain debts such as student loans or child support payments.
Though the debtor’s credit rating will suffer for several years, they will never have to dig their way
out from under the mountain of debt they find themselves under.
In short, bankruptcy should not be considered a shameful thing. Rather, it is a legitimate and
in some cases wise business decision that every citizen has the right to use in order to rectify their
financial situation.
By La Quetta M. Shamblee, MBA
SETTING THE STAGE FOR HOLIDAY SALES SUCCESS
The 90-day countdown to Christmas will begin approximately 30 days from now. For businesses that
offer products or services appropriate as gifts, the days following Thanksgiving thru Christmas Eve
can account for a significant portion of annual sales. This short time period accounts for more than
50% of annual profits for some retailers. Those who understand this reality have probably had plans
in place since the spring.
There is still time to finalize plans and make sure everything is in place to capitalize on the fast-
approaching holiday season. Consider a holiday marketing campaign designed around a specific
product or line of products, or perhaps product displays with certain eye-catching color schemes.
Once you settle on your plan, start spreading the word to your existing customers. Design and print
colorful postcards or flyers to place inside packages with every sale to inform your customers of what
you have available for their gift-giving needs. If you have a mailing list, this is a good time to use it to
inform them of upcoming holiday specials and activities.
Whether you offer produces or services, having gift certificates or gift cards available is a smart idea.
Some shoppers may not ask if you offer gift certificates, so be sure that you let all customers know by
displaying the information in your store and on your website. Have you considered adding a festive
touch to your shopping bags or packaging to add a little pizzazz to your customers’ experience of
purchasing from you? Small, inexpensive touches using ribbon, tinsel or other simple accents will fit
right in with Christmas decorations and music that puts adds to the holiday shopping mood.
A big budget isn’t always required to have a big impact. When it comes to promotional activities,
“It’s the thought that counts” is an adage that carries a lot of weight. Hosting a holiday gathering
with cookies and cider, or coffee and fruitcake at your place of business will serve as opportunity to
demonstrate your appreciation for your customers. It will also allow you to meet and greet them, yet
again, in your place of business.
What business owner do within the next 30 days will have a direct impact on how much they maximize
sales and profits from the shopping that commences between the day that follows Thanksgiving,
through Christmas Eve.
Make a quick QR code with bit.ly
Most people think making a QR code is a lengthy and expensive process. But, you can actually make
a QR code in less than 5 minutes for free with Bit.ly.
Bit.ly is a cool tool that allows you to shorten a long URL, share it and even track how many people
click on it. Here is a cool trick that lets you make your shortened bit.ly into a QR code:
1. Decide where you want your QR code to link (what url/web address). You can create as many
QR codes as you want.
2. Go to www.bit.ly (note – there is no “.com” in the address). Paste in the URL in top right
“paste a link here.” Look for the new bit.ly address that is generated.
3. Copy the new bit.ly address and paste it into the address bar of your web browser. At the end
of your bit.ly address simply add “.qr” (For example: http://bit.ly/tlD5Lf.qr (note, all we did was add
the .qr on the end of the address and it automatically took us to a page with the QR code art)
4. Download the QR code art and use it on your printed material.
5. Make sure to give it a test on your own smart phone. We have found the ATTscanner app
works great.
About MJ: MJ and her brother David own HUTdogs, a creative services business that specializes in
Social Media Education for business owners. Join their conversation on Facebook and get good tips and
tricks about social media, www.facebook.com/hutdogs
Sign up for their upcoming classes and presentations at: www.hutdogs.com/workshops/schedule
THE LIGHT OF DAY
In today’s modern political biosphere, one
would think that it would be nearly impossible
to hide information that may be potentially
damaging to a political campaign for any useful
amount of time. It seems that nearly everything
about anything can be found online, if one has
the resources and the determination to dig deep
enough and to find out most things, one doesn’t
have to dig that deep in order to find it.
In the age of Google, YouTube and WikiLeaks,
those in high places can be almost certain that if
they’ve said or done anything unseemly at all it’s
online somewhere. Forever. Information such
as this wasn’t always this available to the public
as it is today. Anyone who’s been around long
enough to know what the Pentagon Papers were,
or what the Watergate scandal was all about,
can certainly remember the state of technology
back then. We were just as likely to hear about
Breaking News during the 6 o’clock News on TV
or in the headlines of the next day’s newspaper.
The 24-hour news cycle had not yet been born
or even imagined in the minds of the most
technologically forward-thinking people of the
day. Most of the effort to break a story took the
form of a reporter working his or her sources for
information and corroborating the story before
committing to ink or air because the consequences
of “getting it wrong” were career-ending. Fast-
forward to today’s never-sleeping news cycle and
the unrelenting pressure to “get it first”. Today’s
reporters, bloggers and opiners can get the most
intimate details of a story from the most reluctant
of subjects by working online resources for nearly
up-to-the-minute details about whatever the
subject may have said, thought or done around a
particular topic of interest.
On Thursday, the website Gawker (http://
gawker.com) released what it is calling, “The
Bain Files”. These documents, totaling more than
950 pages, purport to show that Presidential
candidate Mitt Romney was far more intimately
involved in the workings of Bain Capital than
he has admitted thus far. During his campaign,
the candidate has repeatedly stated he retired
from the private equity firm in 1999. Further
investigation revealed his signature on documents
well into the 2000’s. These documents show in
detail the complicated financial underpinnings
of his business dealings and investments in the
company.
This disclosure is significant because Mr.
Romney has been opaque to the point of barring
the press from asking about his financial dealings,
even though it has been commonplace for
candidates to high public office to disclose such
information to the public. This candidate has also
refused to release any of his full tax returns for
public inspection.
Presidential candidates have released tax
returns to the public and to their parties as part
of the vetting process since the days of the Great
Depression, with figures such as Ronald Reagan,
George H. Bush, George W. Bush and Bill Clinton
releasing 8 years worth of returns each. Mitt
Romney’s father, George Romney, released 12
years of returns when he ran for office, but the
record goes to Bob Dole who released 23 years
of returns during his bid for the Presidency. Next
to these predecessors, Mr. Romney is starting to
look very pale in comparison.
I suppose his reluctance doesn’t matter
too much. In this age of the Internet Sleuth,
something tells me that we’ll all be getting a good
look at Mr. Romney’s tax returns whether or not
he cooperates with the process.
OMG! OH MY GOSH DID YOU
KNOW…………….. By Patricia Richardson, M.B.A
Call me sooner rather than later!
QuickBooks 2012 has a new Easy Setup function
that is in every Pro and non-accountant edition
of Premier; Intuit says “Who should use it? Any
company that is new (or new to QuickBooks)
should use it if it is being created by someone
who is not well-versed in QuickBooks”. Well there
is; you have it; Intuit thinks they have designed
a product that anybody can use. Well let me say
that the business owners I work with are usually
entrepreneurs; people with a big vision who can
conceptualize the path to get where they want
to go. Their vision does not usually include the
accounting grunt work required to maintain the
record keeping needed to satisfy government
agencies. So go ahead, use this new feature and I
am prepared to help you. Just don’t forget that I
suggested that you should call me before not after
this happens.
Use the Express Start setup option to get going
in QuickBooks quickly and easily; answer five
basic questions in three screens and get going?
This is great for new users and non-accountants
who may experience trepidation (and who might
put off starting to use QuickBooks as a result) at
the notion of a full company setup. The answers
to the questions can be modified later if desired.
You can access this function by selection the File
menu. When the QuickBooks Setup dialog box
opens, click on the Express Start button. Intuit
also says that “this feature is cool because it lets
you set up your own company files within a couple
of minutes, even though you may not know
everything you need to know ultimately to use
QuickBooks to its fullest on an ongoing basis”.
There is also a new Auto Data Recovery feature
that is a hidden feature in Pro and all non-
Accountant versions of Premier. It comes in very
handy when there are corruption problems that
prevent you from opening the data file at all. It
picks up where the File Diagnostic Tool and the
verify/rebuild functions leave off.
The Auto Data Recovery lurks in the background.
It stealthily makes copies of the data and *.TLG
files and places them in a subfolder (named
“QuickBooks Auto Data Recovery”) of the
directory in which the data file resides. To prevent
confusion, despite the separate nested location,
the files have a *.ADR name. These files are created
every 12 hours, with a maximum of two files (12
hours old and 24 hours old) for each company (so
that there are two historical points to which you
can restore data if necessary).
Should the worst happen and you cannot open
your data file, it may be necessary to restore the
data file to a recent point before the problem arose.
Tech support and articles can guide you to finding
these *.ADR files, renaming them, and having
them replace the live corrupted file. This feature
is important because it enables you to restore a
corrupted data file even if no backups or portable
copies were taken. You have two historical points
from which to choose for restoration.
Okay, another scam warning (not my
words)!
I received in the mail the other day what looked like
an official request to renew my fictitious business
name, Monrovia Computerized Business Service.
It would cost 89.00 and “Please send the check
right away to avoid losing the name”. The letter was
from SOCAL DBA PUBLICATIONS SERVICES
FICTITIOUS BUSINESS NAME RENEWAL
CENTER DIAMOND BAR California. I thought
that if this was an official form why was it not
already filled out since the County Recorder has
all of my business information and it seemed as
though I had just renewed my fictitious business
name.
I opened up my QuickBooks file and looked
under licenses and permits to see what I had
paid and when. Sure enough there I found my
payments in 1998, 2003 and 2008 for $27.00 each.
I contacted the Los Angeles County Recorder (the
reporting agency for fictitious business names)
and sure enough I was in good standing (you can
check on-line) and my next renewal date is in
2013; the renewal period is 5 years and the cost
will be $27.00. Prior to renewal you should receive
a filled in postcard from the Los Angeles County
Recorder. If you receive a letter from a company in
Diamond Bar you can check the company name
on-line to see if a complaint has been filed, I did
and I just threw the letter away.
Patricia Richardson the owner of Monrovia Computerized
Business Service and is a local accountant, educator
and trainer working to help business owners realize
their business mission and vision by empowering them
with tools and training in areas that may not be their
core competency. For additional information, patti@
qbworkshop.com or www.QBworkShop.com
TRYING TO SET UP A NEW QUICKBOOKS
COMPANY DATABASE?
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