Craig DaleyBusiness Consulting, Interim or Permanent CEO
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Semi-retired CEO and 3-time recipient of Inc 500 "Fastest Growing Privately-Held Companies in America". I will help you grow or start your company, overcome challenges and provide you guidance or turnaround consulting. FREE Initial Consult - use code https://clarity.fm/craigdaley/VIP20.



Recent Answers


The balance of gift certificates outstanding should be listed as an advance deposit on the balance sheet and treated as a liability until they clear - assuming the current owner recorded them properly. Then, when they clear, the revenue is recognized. Accordingly, as a liability, it would reduce the value of the business as part of owner's equity at the time of valuation and subsequent sale.

In the case where the seller does not know the value, hopefully there were records of money collected in the deposits and noted as such. That could be determined through an audit, assuming there was enough to be concerned with and a journal entry would need to be made as a liability for that amount on the balance sheet.


It is a tough solution. Personally, I don't like fixed price billing as you never know what you are going to get into - UNLESS - you have a packaged service of solutions that you plan to offer, clearly defined or the client. But then a fine line can occur as to variations and interpretations of what those specific deliverables are.

I believe in hourly billing against a retainer. It is the fairest for all as long as you are providing value for the time billed and measurable results. The client knows at least what his/her initial cost is and can have some control over it once the retainer is exhausted.

In this manner, as changes and curve balls come at you (and they will), you are protected and the client know he will have to pay.

Just my own personal opinion for what it's worth.


If your business plan is for the purpose of raising money, then funding sources will want to see 3-5 years of financial projections as well as market information that will support those numbers. I would need to know what your definition of "business plan" is.

If you look up typical business plan templates, you can find the items that should be in a business plan; however, 20 and 30 page business plans rarely get read. I suggest no more than 10-12 pages of what funders want to know to lend or invest money.

If you would like assistance on this, feel free to contact me as I have prepared many business plans and pitch decks.

Best of luck,
Craig


For my services, there is no long-term obligation. You can hire me for as little or as long as you want. Once we agree on a scope of work, I can quote you a fixed price for specific deliverables or I can quote you an hourly rate to do what you need done. I am very flexible.

I am here to serve my clients so I will always work within your range of budget. It will just always depend on how much you want done.

Feel free to contact me with a specific need and I am always happy to provide an initial consultation at no cost with a quote you can say yes or no to.


Hi, I have started over 10 companies in the last 25 years and am very experienced in starting, structuring and deciding where and how to set up companies.

Delaware and Nevada are good because they do not have a residency requirement. So you can live anywhere and incorporate in either of those states.

Other states you would need to check the fees and structures. This is most easily done by going to your Secretary of State online website. Most other states will require a physical presence and residence in that state.

If you would like me to check your state or should you need assistance with this or any other business project, don't hesitate to contact me.

Craig


Hi, I have many years experience in structuring various partnerships, JV's and business entities.

Depending on the structure, it should be based on the level of each parters' paid in capital. You put in 20%, you get 20%. That's the easy way. However, when you are going to a JV/partner that is supplying more than just capital, you would need to come to an agreement with the company as to the intangible value of what they are providing in addition to cash. So, if the cash is worth $XX and their services, time and other assets are worth $YY, then they may be entitled to a larger share than you.

I hope this helps on the process to value. If you would like assistance in the valuation of the share split and negotiation of a fair structure, feel free to contact me directly at: interwealth@email.com.

Best of luck,
Craig


I started my last company and grew it with $20,000 to $12 million in 10 years. And while I was in the early phases, I did put in on my resume..

So, I believe you should. If it is a registered business entity and you are working it, it is still what you are doing, regardless of revenue of the company. If you are performing the tasks in your position, it shows you have been attempting to launch as well as (hopefully) prevents any gaps in employment. It also shows a level of commitment to your venture.

We specialize in assisting startups with business plans and structure, so fee free to contact me for additional questions.


That depends. Depending on the type of business you have, you could indeed pay on straight commission providing the commission is equal to or more than minimum wage for your state.

If the employees are not full time and pass the IRS test for "Independent Contractors" you could pay them in that fashion as well.

If they are true employees, they will be subject to Wage and Hour regulations so unless you have them engaged as a contractor, you would not be able to pay them on a piecemeal basis.

You should review these rules and regulations at the website for the Department of Labor: www.dol.gov

Feel free to contact me for further assistance.


You can live wherever you want and have a business wherever you want. Especially with an LLC.

The IRS doesn't care because with an LLC, the profit flows through the business to it's Members, to the extent of their basis. So if you own 75% and another Member owns 25%, then the profits are distributed that way and reported on the "K-1" with the federal return. LLC's pay no federal income tax as it is al allocated to the Members.

The only issue is at the state level wherever you live. If you meet the residency test for that State (which you can find online), then that is where your state taxes - if any - would be calculated and paid based on your K-1 return. You certainly wouldn't want it to appear you have a CA residence with their tax level!

I would suggest that you establish residency wherever you live. I too have a virtual mailbox AND live outside of the country. Doesn't affect my LLC in the states at all.

Feel free to reach out if you need further help.


A lot of the decision involved in this depends on the job functions and sometimes, the state you are located in.

There are many legal issues surrounding hourly vs. salary. There is "salary-exempt" and "salary non-exempt". Exempt employees don't receive overtime pay; nonexempt employees do. The classification criteria for exempt and nonexempt workers are part of the Fair Labor Standards Act, or the FLSA, which is the federal law that governs minimum wage, overtime pay and working hours.

The general federal guideline is that if an employee is not managing or supervising, he/she must be paid hourly. There are exceptions to this for certain sales and other professional positions; however, use caution as there have been many successful lawsuits against employers over the years for abuse of salaried positions.

I would recommend you first make the determination as to how to legally classify your employees, then consider the impact on service culture.

Feel free to contact me to discuss this in further detail.


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