Tax Evasion for Dummies

It’s that time of year again. You know, when our loveable government tax agency – filled with charming and fun people who have no need to read any further – bill you for living in the United States.

Wait, they let you figure out your own bill! Yet, you must first decipher the ‘secret code’ (without a decoder ring) that is 700 pages long. And then there’s Chapters 2-40.

If you misinterpret the code, you may be required to pay an “I couldn’t figure it out” penalty or get sent to a Government Recreational Facility, which is funded by those who did figure out the code. Confused? Don’t be! Here are THREE big points to help you:

1)      Earn more, pay more. It’s like a reverse commission. Too high? See Item 2.

2)      Earn less, pay less. There! Or you can…

3)      Earn nothing, pay nothing! PLUS, you get paid by people in the other two groups to continue doing nothing. See? That’s why it’s called a system!

Now this is all cleared up, here’s How to make your tax concerns a thing of the past.  

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First, please know that I am not an accountant; never have been one and I get nervous in the presence of Excel. My advice in this area would rival that of lettuce.

Yet, I’d also be leery of Governmental type people giving you ANY spending advice, especially since they spent YOUR tax money on the following things I did not make up:

Ø  Gave Alaska Airlines $500,000 “to paint a Chinook salmon” on the side of a Boeing 737. Come to Alabama. I know some guys who’d do an awesome Largemouth bass for a 12-pack.

Ø  Spent $175,587 “to determine if cocaine makes Japanese quail engage in sexually risky behavior”. My opinion: Find the guy who suggested this study and arrest him because he is doing some very weird things.

Ø  Spent $151,988 on a study to determine “Why College freshmen had a tendency to add weight.“  I think I have your answer: a) Lots of beer, b) Lots of pizza, c) Very few parents standing over them saying, ‘Get your ASSociates degree off the couch and go do something.”  Does this solve the mystery?

“What? You’re like saying that like pepperonis are like not a fruit?”

(Editor: No, they’re not. And your boyfriend is a loser.)

Public Complaint Makes Private Disclosure

How many times have you heard someone say, “Man my taxes are SOOOO high?” Those people are actually saying:

“I am making a ton of dough. But since that is considered improper, I’ll make it sound like a complaint. Plus, I have a seriously awesome watch. ”

Yet – unimpressive as they are – they are onto something.

So, to quit worrying about our government flushing our tax money down those 1.6 gallon toilets:

Make More. Care Less.

To me, I don’t so much want some mythical mountain of money, I just want autonomy. (Thank heaven I had great mentors on this topic.) Some of this is attitudinal. So, instead of complaining about taxes, consider them thusly:

Your taxes really are a sales commission, paid to mostly responsible parties who try to keep you safe, give and protect freedoms, provide decent roads and sanitation, all within a compassionate system designed to catch you if you fall.

Sure, the policies are sometimes as dysfunctional as a quail on cocaine, but complaining doesn’t help or I’d be 6’4” by tomorrow morning. 

Your job – should you accept it – is to make as much as you possibly can to the degree you can live your freedoms happily. Save it, spend it, give it away. Leave the rest for taxes and call it a day.

Raise Your Pay Automatically

It’s NOT taxes that are stifling your financial independence, this is:

1.       Your own education about wealth attraction, accumulation, including…

2.       Business systems to improve cash flow

3.       Business systems to improve net profit (or however you’re directly paid)

And if your ‘investment’ in any of those comes back as “Either zero or next to it,” then your return is likely commensurate. Just an observation. Here’s an aside:

The most successful contractors I know are the SAME ONES every year, often on the front row of the seminars. (About 7-10 of my consultant friends have the identical observation; this is not coincidence.)

They invest in coaching, training. They invest in ‘systems’ for sales, operations, technical and – to my way of thinking – the most influential of all, marketing. (You just KNEW I’d slide that in!) Honestly, they realize that no leads or a forgotten presence can ruin the rest of their goals.

And they realize no investment in Customer Retention means, well, not much customer retention, who I’m pretty sure pay for everything you and I have.

They also hire slowly, ‘dismiss’ rather quickly and continue to improve the system. Their best people are well-educated in job performance AND improvement thereof. (This study of excellence is another topic, possibly worthy of a full coaching call. Your thoughts? Add it to comments below.)

So, as you complete your tax “commissions” this year, consider it a little scorecard to tell you:

“Am I closer or farther away from my goals than last year?”

This is a decent reading on your Autonomy Meter. If farther away, make adjustments (call your coach here), and if closer, congratulations. My hopes are that after writing your commission check to the government, you’re a giant step closer to not caring how much it is.

Adams Hudson

The Simple Marketing Secret Most Contractors Overlook

Let’s say you meet someone for the first time, and during that meeting, you have a great conversation and realize you have some common interests.  You seem to look at things the same way. 

You just get a feeling that this is a good person, and you may think, “You know, we could be friends.” 

“Could be” is the key phrase, of course.   Because, I’m sure you realize, it would take some specific actions to move from “we could be friends” to “we are friends.”  And one of the things you’d have to do is stay in touch.  You’d have to talk again.  You’d have to be in contact with each other. 

Now, if you’re starting to ask yourself why I’m telling you something so obvious, it’s because experience has shown me that a lot of contractors act as if “staying in touch” is a principle they've never heard of. 

And frankly, that’s scary. 

In most cases, it costs you in marketing expenses around $275-$325 to gain a new customer.  If you don’t keep that customer, you've spent an awful lot for a “one-time” service call.

Each name in your database only represents “could be” customer potential.  No, they’re not active customers any more than a one-time meeting with someone qualifies them as a friend. You've got to take action for that to happen.

The simple fact is this:  regular contact keeps customers.  That involves a number of tried-and-true techniques, such as:

•  Follow-up visits with thank you cards, calls, or emails: This simple act speaks volumes of your company and can boost your image. Have your techs keep a stock of thank you cards with pre-stamped envelopes and they can fill them out right after the service call. This two minute task will let your customer know that you appreciate their business.
• Offer maintenance agreements: How great is it to have a customer pay to remain a customer? This loyalty program is a mutual investment between the consumer and the provider. In a maintenance agreement a customer could get a higher level of service, exclusive discounts, special treatment, or even guarantees. What you get out of this is a reliable income stream. Maintenance agreements can even out your cash flow and provide a year round income.
• Reactivation Letters: Never throw away a list of names. An ex-customer will reactivate and spend money if you say the right things. Tell them that you miss them and if you've done something that might have offended them that you want to make it right with something free or a discount. By getting a response from this list you've saved money that was headed straight for the trash.

Equally important are holiday cards, “customer only” direct mail offers and a customer retention newsletter. 

If done correctly, that last item – the newsletter – is the centerpiece of a well-run customer retention program. In fact, if you only do one thing, make it a newsletter that goes out at least twice a year. 

Fill it with interesting “home care” tidbits so it’s not perceived as “advertising,” and thus forges a far better image and strengthens the relationship. Better relationship equals better retention. 

How to Get a Customer Newsletter

1. You can do it yourself. If you’re prone to writing, designing, graphics, editorial layout and have experience crafting an informative newsletter that can also sell, then go for it! Many times I speak with contractors who do it themselves the first time, then “run dry” for info on subsequent efforts. Therefore, there’s option 2…
2. Hire it out. An ad agency or newsletter creation service can create a special one for you, customized exactly as you want it. Unless your database is over 10,000 or so, the costs can be significant. This is why there’s option 3…
3. Use a “syndicated” newsletter. This is also known as “semi-custom.” It is very fast since the template for the newsletter and most of the content is already done. This also makes it far less costly. Some companies offer ‘ads’ for your company. Stay away from the overly slick fluffy ones since they don’t appear “local” enough to consumers.

A good syndicated customer retention newsletter costs less than $6 a year per customer, including postage!  Not a bad return on investment, especially since it involves returning customers.  Every customer who has written you a check or swiped a card in the last 48 months should be receiving your newsletter. 

All high performing newsletters will have an online component. A QR code can link your printed newsletter to your online version. Hudson, Ink can provide Newsletter customers with an online newsletter portal that is updated monthly with new content and offers for your customers. This improves your online presence, gives you content you can share on your social channels and provides even more helpful and useful information to your customers.

Sending a Newsletter to your customer is like having a cup of coffee with your customers at regularly specified times each season. It’s low pressure and keeps your company at the top of your customers mind.

Always remember, your company’s current customers are the absolute #1 source of your future sales. Loyal customer will end up spending 33% more with your company and sending 107% more referrals to your business than non-loyal customers. And speaking of referrals, newsletters are a great place to utilize referral requests. Most contractors think that referrals “just happen” but that’s usually not the case. If each of your customers referred one other then you would double your customer list right now. For free. 

When you lose customers, you lose all of their future business and all of their referrals to your competition.  When you keep customers, you keep that pool of sales for yourself.  And isn’t that a scenario worth considering?