Saturday, August 11, 2007

How to Deduct a Home Office

Distance Education Helps You Get Ahead

CanadianMedsWorld.com

NEW YORK -- One of the most tempting but also terrifying small business tax deductions is for a home office _ deducting the cost of operating out of your home can help you save on taxes, but complying with IRS regulations can be a little daunting.

Accountants say the good news is that the deduction, which used to be considered a fast way to an audit by the IRS, doesn't raise red flags with the government as it did in the past. Still, business owners often make mistakes trying to claim the deduction that can grab the attention of the tax authorities _ something every taxpayer wants to avoid.

Stephen Fishman, an attorney and author of "Home Business Tax Deductions" said a common error company owners make is to try to deduct space in their homes that has both business and personal uses. That won't fly with the IRS.

"You have to use the space in your home exclusively for business," Fishman said.

An office with PCs and a fax machine isn't the only way to take advantage of the deduction for using your home for business. If you manufacture goods or store inventory in your home, the space you use for that can also be deducted. The same applies if you run a business like a day care center or nail salon in your home.

You don't necessarily have to have a separate room for your office or business space, but taking the deduction is less complicated if a room is indeed set aside for business purposes. For example, it might be hard to convince the IRS that the home office in part of your family room is never used by your children to do their school work or play computer games.

Whatever the space is, it must be regularly used for your business. It doesn't have to be your only place of business, however.

An owner with a home business can deduct the expenses used to maintain the business space _ the portion of utilities, mortgage interest or rent, insurance, repairs and maintenance and other expenditures that can be attributed to that space. One of the big pluses of a home business deduction is that you can also depreciate the portion of a residence used for business; normally, a residence cannot be depreciated.

To determine how much of their expenses they can deduct, most owners divide the total square footage of the home by the square footage allotted to the business. For example, if 5 percent of a house was used for a business, and the owner had $5,000 in expenses for the entire house, then $250 could be deducted.

But square footage is another way owners can run into trouble with the government _ for example, if it appears to the IRS employees examining your return that your home business space is too big for the kind of business you operate, they may question the size of your deduction.

If you're thinking of claiming the deduction, you need to get yourself educated about the IRS' requirements. The first thing you should probably do is download and carefully read IRS Publication 857, Business Use of Your Home, from the IRS Web site, http://www.irs.gov. There are also several small business and home business tax guides available in bookstores that can give you a grounding about the deduction.

Also take a look at the IRS form you'll need to file, 8829, Expenses for Business Use of Your Home, and its accompanying instructions. They can also be downloaded from the IRS Web site.

It's probably a good idea not to try to claim the deduction without consulting a tax professional. Jeffrey Chazen, a tax partner at the accounting and consulting firm Richard A. Eisner & Co. LLP in New York, noted, "there are little quirks you have to look out for" with a home business deduction.

For example, he noted, if you've been depreciating the space for your home office but now sell your home, you'll have to "recapture" the depreciation, or adjust the profit you made on your house to account for the tax break you already received.

Another, important quirk: Your deduction cannot be larger than the net profit you make. But you can use the excess to offset profits in succeeding years.

Chazen suggests that now, as you're preparing your 2006 tax return, isn't the time to be thinking about the home business deduction for last year. If your business space didn't already meet the requirements for the deduction, you can't shoehorn it in after the fact.

You can, however, start working now so you can claim the deduction for the 2007 tax year.


7 Tips to Speak With Ease
Don't Amazon Me - How To Pick A Good Niche For A Bookstore

Labels: , , , ,

Thursday, July 26, 2007

2007 Mothers of Invention Challenge

When Commercial Space Is a Good Move
CanadianMedsWorld.com

"Good Morning America Weekend" kicked off its third annual Mothers of Invention Challenge today, in partnership with Mom Inventors, Inc.

If you're a mom who has a great idea for a new invention, you can enter to win. One grand prize winner will receive $10,000 plus a 5 percent royalty from the net sales of the invention. See full official rules below for complete details.

All entries must be postmarked by March 24, 2007, and must be received by April 2, 2007. Please see contest rules below for complete information and entry requirements.

Mothers of Invention Contest Rules

Mom Inventors, Inc.
American Broadcasting Companies, Inc.

OFFICIAL RULES
"Good Morning America Weekend" Mothers of Invention Challenge

NO PURCHASE NECESSARY TO ENTER OR WIN. A PURCHASE WILL NOT INCREASE YOUR CHANCES OF WINNING.

Eligibility

Promotion is open only to female inventors who consider themselves to be or to have been a mom, who are legal residents of the 50 United States and D.C. and who are 18 years of age or older. For minors, entries must be accompanied by parental consent. Void outside of the United States and where prohibited. Any individuals (including but not limited to employees, consultants, independent contractors, and interns) who have, within six months prior to the start date of the Promotion and thereafter, performed services for American Broadcasting Companies, Inc., Mom Inventors Inc., Amazon Services LLC, or any organization responsible for sponsoring, fulfilling, administering, advertising or promoting the Promotion or supplying prizes, and/or their respective parent, subsidiary, affiliated and successor companies, and immediate family and household members of such individuals, are not eligible to enter or win. "Immediate family members" shall mean parents, step-parents, children, step-children, siblings, step-siblings, or spouses, regardless of where they live. "Household members" shall mean people who share the same residence at least three months a year, whether related or not.

Entry

"Good Morning America Weekend's" Mothers of Invention Challenge (the "Promotion") begins 7:00 am ET on February 10, 2007 and all entries should be postmarked by March 24, 2007 and must be received at the Post Office Box by April 2, 2007. All entrants must send a standard VHS, DVD, DV or Beta tape (other formats may not be considered), no longer than 3 minutes in length, discussing the origin and purpose of and showcasing their invention. The video must show the ACTUAL INVENTOR and, to her best ability, visually and verbally illustrating and describing her invention and its features and benefits. The inventor should also briefly describe herself and her family in the video tape submission. The video must be accompanied by an Invention Summary and Confidential Non-Disclosure Form , collectively the entry ("Entry"), to Good Morning America Weekend's Mothers of Invention Challenge, P.O. Box 830, Alamo, CA 94507. Only videotaped entries with accompanying AND signed paperwork will be accepted. Do not send prototypes of the invention with the entry. Entries to a post office box should be made using one of the available services of the United States Postal Service; post office boxes can not receive deliveries from an overnight or other courier delivery service other than those delivery services provided by the United States Postal Service. The entry must be from the actual inventor. Limit one entry per person for the Promotion. Multiple entries will result in the disqualification of all of your entries. All entries must be received at the PO Box address. Entries delivered to any other address will NOT be considered. Any previously submitted video tapes may not be in compliance with modified entry requirements. Entrants from prior years' challenges are strongly encouraged to update their submission.

American Broadcasting Companies, Inc. ("ABC"), Mom Inventors Inc, West & Associates, A PC. , and Amazon Services LLC (collectively "Sponsors") will not be responsible for late, lost, incomplete, illegible, damaged, garbled, technically corrupt, postage-due or misdirected entries. All entries should be postmarked by March 24, 2007 and must be received by April 2, 2007. No tapes, Invention Summary and Confidential Non-Disclosure Form, including video entries will be acknowledged or returned. All such tapes and documents will be securely stored and/or disposed of at the conclusion of the Promotion. Sponsors cannot provide technical support and accept no responsibility for insuring the receipt of or viewability of your entry.

It is the sole responsibility of the entrant to notify American Broadcasting Companies, Inc. in writing if the entrant changes his/her e-mail address or mailing address. To do so, write to: Good Morning America Weekend's Mother's of Invention Challenge, P.O. Box 830, Alamo, CA 94507. Notification must be received by April 19, 2007. By entering this Promotion, participants agree to these Official Rules and the decisions of judges and Sponsors, which are binding and final in all matters relating to this Promotion.

By entering, participants agree to indemnify, defend, release, discharge and hold harmless American Broadcasting Companies, Inc., Mom Inventors Inc., West & Associates, A PC, Amazon Services LLC, and their respective parent companies, subsidiaries and affiliated companies, advertising and promotional agencies and prize suppliers and their respective officers, directors, employees, agents and representatives from any and all claims, liability, including but not limited to negligence and damages of any kind to persons and property, including but not limited to death or personal injury arising out of a participant's participation in the Promotion and/or acceptance or use or misuse of prize, and any claims based on rights of privacy, rights of publicity, false light, defamation, copyright and/or trademark infringement. By entering this Promotion all finalists grant permission to the Sponsors to use their respective names, video tapes, photographs, likenesses, images, voices, prize information and/or biographical information (city and state only) for Good Morning America Weekend (including their licensees) programming, publication, publicity and promotional purposes without compensation, review or approval unless prohibited by law. All federal, state and local laws and regulations apply.

Additional Entry Limitations

The invention must be an original concept submitted by the inventor. Do not incorporate the protected works of others in your entry. Sponsors may disqualify such entries and take all other measures Sponsors may deem appropriate so as to protect their interests. Entries must not currently be entered in any other promotion, contest or competition. Entries that contain any content determined by Sponsors in their sole discretion as indecent, inappropriate, and morally objectionable or otherwise unfit for broadcast will be immediately disqualified. Entries not satisfying these Official Rules in any respect will be disqualified. In submitting the entry, entrant understands and agrees that the invention is a "submission" as defined in the Terms of Use of www.ABCNEWS.com; and, as such, American Broadcasting Companies, Inc., subject to the terms of the Invention Summary and Confidential Non-Disclosure Form owns any and all rights to use the videotape. (For ABCNEWS.com's Terms of Use, direct your Internet browser to the Legal Terms page). In the event of a conflict between these Official Rules and the Terms of Use, the Official Rules shall govern.

Entrants, selected as finalists, further agree to sign any and all documents required by American Broadcasting Companies, Inc., Mom Inventors, Inc., West & Associates, A PC, and/or Amazon Services LLC upon their request, so as to confirm, record and/or perfect their ownership rights in the entry. As a condition of the Promotion, for each individual entry, all entrants must fill out the Invention Summary and Confidential Non-Disclosure Form in their entireties, which are available at http://abcnews.go.com/GMA/. This Invention Summary and Confidential Non-Disclosure Form must be included with the entrant's entry.

Entrants agree to accept all terms and conditions associated with acceptance of the Prize in the event they should be selected for further participation in the Promotion. If selected as the Grand Prize Winner, Entrants accept and understand that Mom Inventors, Inc. shall own all rights, title and interest, including, but not limited to, the right to apply for and receive any and all forms of intellectual property protection, of or related to the invention submitted by the Grand Prize Winner. Specifically, the Grand Prize Winner expressly agrees to execute an exclusive license agreement on substantially the same terms as presented here.

The Grand Prize Winner expressly agrees to execute any and all documents necessary to perfect any and all such intellectual property protection and/or any and all documents necessary to transfer and all interest of or related to the Grand Prize Winner's entry to Mom Inventors, Inc. in the event the Grand Prize Winner has already received issued patent(s) on the entry, and/or has applied for patent protection on the entry, the Grand Prize Winner expressly agrees to assign ownership rights in said issued patent(s) and/or patent application to Mom Inventors, Inc. in consideration of the Grand Prize awarded to the Grand Prize Winner.

By entering, Entrants agree they will not commit their product to any other manufacturer and/or entity in any manner during the course of the Promotion and expressly warrant that they have not previously committed their product to any other manufacturer and/or entity and their product is not currently for sale through non-direct distribution or direct distribution channels such as retail stores, catalogs, other mass outlets or online. All Entrants hereby grant exclusive right to Mom Inventors, Inc. to file a United States provisional patent application or other appropriate intellectual property documents on their behalf on or before May 11, 2007, and agree to execute all requisite forms and associated documents required as part of such provisional patent or other intellectual property applications. However, Mom Inventors, Inc. shall not be obligated to file any such provisional patent application. A provisional patent application may be filed by Mom Inventors, Inc., at their sole discretion, with no charge to the selected Entrant(s). Any provisional patent application filed will list Entrant as the Inventor. All Entrants agree to grant Mom Inventors, Inc. together with its authorized licensees the right of first refusal to negotiate a license deal for their entries with not only Finalists but also any Entrant who has made a entry for which a patent application, provisional or otherwise, has been filed on or before May 11, 2007 by Mom Inventors, Inc.

Entrants understand, recognize and accept that Mom Inventors, Inc. has access to, may create or has created materials and ideas which may be similar or identical to the submitted confidential information in concept, theme, idea, format or other respects. Entrants understand, recognize and accept that often similar or identical submissions are received and that in the event their entry is identical or similar to the entry of another entrant, the Sponsors reserve the right to select one entry over said identical or similar entry at the sole discretion of the Official Judging Panel without obligation to further explain, justify or validate this decision to any inventor.

Entrants understand and accept that American Broadcasting Companies, Inc. ("ABC") has an extensive history of creating and developing television segments and programs. Such development activities have preceded this promotion and will continue thereafter. Entrants' entries shall not be construed as any acknowledgement or admission that the same or a similar idea has not previously been created and/or developed by ABC. Entrants further acknowledge that ABC, or its parent company, engages in extensive activities in creating, acquiring and developing literary, artistic, musical, design and other material, including stories, ideas, themes, plots, titles, screenplays, formats, concepts for attractions, parks and other developments and other materials (collectively, the "ABC Material"). Moreover, the ABC Material which ABC may hereafter use may have originated with or may have been acquired from ABC employees or others and may duplicate, parallel or resemble the inventions.

Judging

The Official Judging Panel, consisting of representatives from Mom Inventors Inc., West & Associates, A PC, representatives of American Broadcasting Companies, Inc, Amazon Services LLC and other sponsors, if any, is selected at the sole discretion of American Broadcasting Companies, Inc. The judging panel will then select the top three (3) invention entries from all eligible entries received. The judging of the inventions will be based on the following criteria: (1) the creativity and originality of the entry; (2) the quality and persuasiveness of entrant's reasoning on why the invention has value; (3) the benefit to people; (4) the marketability of the invention. The definition of "Invention" and "Originality" is to be solely and subjectively determined by Mom Inventors, Inc. and ABC. An interview with the inventor, conducted at the sole discretion of the judges, may also be required. The judging will be conducted commencing on or about Monday, April 2, 2007 through or about May 11, 2007. During that time, selected inventors may be required to submit additional requested information to assist in sponsor/judges due diligence research, regarding patents, and background checks, etc. The finalists of the potential winning inventions will be notified by mail and/or phone and/or email. Potential winners will be required to sign and return within 7 business days of receipt an Affidavit of Eligibility, Release and Indemnification, a Publicity Release where allowed by law, as well as other documents that Sponsor may require. If any potential winner does not reply to such notification within 2 business days, an e-mail notification is undeliverable after up to 3 attempts and/or the Affidavit of Eligibility, Release and Indemnification, a Publicity Release and/or any other required documents are not returned by potential winner (and/or essay subject, as appropriate) to Sponsors within specified time period, such potential winner may be disqualified and an alternate potential winner selected (i.e., the entry ranked immediately below the disqualified entry in the judging), this process may continue until another potential winner is selected. Select entrants may be subjected to criminal and civil background checks, as well as patent searches, as determined at the sole discretion of the sponsors.

GMA Profiles & Grand Prize Voting: Each of the inventors of the top three entries ("Finalists") must be willing to work with Mom Inventors Inc. and producers of ABC News programs, Good Morning America Weekend and/or other Sponsors. The Finalists must also be available to appear, at producers' discretion, on live broadcasts of Good Morning America Weekend in May 2007. After the segment highlighting the Finalists is broadcast on Good Morning America Weekend, on or about May 12, 2007, viewers will be invited to log onto www.GMAWEEKEND.ABCNews.com to vote, based on the same judging criteria listed above, for the one invention they feel most deserves to be manufactured and distributed. Viewers must cast their votes on or about May 13, 2007 before 12:01 am. The dates for voting are subject to change due to possible pre-emption or other reasons. In the event dates of voting should change Good Morning America Weekend will announce and post on-line as necessary. The Finalist who receives the greatest number of votes will be selected as the Grand Prize Winner on or about Sunday, May 13, 2007, Good Morning America Weekend will announce which of the Finalists has received the most votes (i.e. the "Winner"). In the event of a tie the Finalist with the highest score in the greatest invention benefit category will be deemed the Winner. In the event that the Winner is disqualified, the highest vote-getter of the remaining Finalists will be selected as the Winner.

Grand Prize:

The Grand Prize Winner, by winning, is automatically entering into a licensing agreement with Mom Inventors Inc. for the manufacturing, promotion and distribution of their entry. The Grand Prize Winner will receive $10,000 plus a royalty of 5% of net sales for all time periods during which Mom Inventors, Inc makes commercial sales of a product based on the Entry, as more fully explained in the form license agreement. During such time periods Mom Inventors, Inc. shall make best efforts to make commercial sales of the product. At any time, on 60 days written notice, Mom Inventors, Inc., at its sole discretion, shall have the right to stop selling the product and may, at its sole discretion, assign all right, title and interest in any intellectual property associated with the product to the Grand Prize Winner. The Grand Prize Winner shall not make, use, sell, transfer, license or otherwise encumber any intellectual property associated with the product or entry, except as required hereunder, during such times as any/all intellectual property rights associated with the product and/or Entry are in full force and effect. Net sales shall be defined as selling price less costs of manufacture, costs of shipping, costs of packaging, costs of promotion, costs of insurance, overhead costs, volume discounts and returns and allowances. Federal, state and local taxes on any winnings and royalties are the sole responsibility of the winner, who will receive an IRS Form 1099 reflecting the final actual value of any prize valued at $600 or more. You should consult a tax professional for a full explanation of any potential tax implications. Winners are not entitled to exchange or transfer prize or to obtain any other substitution, but Sponsor, in its sole discretion, may substitute prizes of equal or greater value due to prize unavailability or for any reason. The Sponsors in their sole discretion may provide airfare and hotel accommodations for Finalists and/or the Winner as deemed necessary. The Grand Prize Winner will also receive a $1000.00 gift certificate from amazon.com for use to purchase merchandise on its website.

Prizes for Two Other Finalists

Each of the other two finalists will receive a $1000.00 gift certificate from amazon.com.

Restrictions

For Broadcast: The three Finalists agree to make themselves available to participate in the broadcast profiles, live appearances on ABC-TV. Finalists understand and agree that, if any Finalist is NOT available for the Profiles, or in the event such background research reveals information leading the Sponsors, in their sole discretion, to determine that the Finalist should be disqualified, that entry will be disqualified and an alternate entry will be selected based on the next highest score given based on the above-stated judging criteria and this process may continue until three finalists are selected. In the alternative, the Promotion may, in Sponsors' discretion, proceed with only two Finalists. All arrangements are subject to change, availability and Sponsors' approval, including but not limited to the production schedule of Good Morning America Weekend. The Finalists must agree to follow any and all instructions of producers during taping of the Profiles and live appearances, as determined in their sole discretion and not engage in conduct that violates the broadcast standards of American Broadcasting Companies, Inc., as determined by American Broadcasting Companies, Inc., in its sole discretion. The content, location and live appearances will be determined by American Broadcasting Companies, Inc., Good Morning America Weekend.

The Finalists agree (1) that ABC may, but is not obligated to, broadcast or re-broadcast, in whole or in part, in any format or medium, including but not limited to the world wide web, the taped Profiles, the live broadcast of Good Morning America Weekend including the taped Profiles and/or footage of or information about the Finalist, without notification or compensation; (2) that Mom Inventors Inc. may, but is not obligated to, promote the challenge, in any format about Winner and/or other finalists, without notification or further compensation and may include any and all materials which were part of the original entry or subsequently became a part of the entry as part of that promotion; and (3) to sign any and all appearance releases and other documents which may be required by Sponsors in conjunction with acceptance of the prize. Nothing herein in any way obligates Sponsors to include the taped Profiles, in whole or in part, in any broadcast of Good Morning America Weekend or any other program.

The Grand Prize Winner agrees to provide her name and/or likeness for use in conjunction with the promotion and sale of her invention on both mominventors.com and amazon.com.

General

All expenses not specifically provided for herein are the Finalist's sole responsibility. Some additional restrictions may apply. By entering, Entrant grants American Broadcasting Companies, Inc. and Mom Inventors Inc. the right to use their name, voice, likeness, entry, biographical information, story and/or performance in connection with Good Morning America Weekend, such may be broadcast, distributed, published or exhibited in any and all media now known or hereafter devised, throughout the world, in perpetuity, and in any and all advertising and publicizing thereof.


The Multimillion-Dollar Super Bowl Gamble
AdSense Tracking Tools
Top Tax Write-Offs That Could Get You in Trouble With the IRS

Labels: , , , ,

Sunday, June 10, 2007

Dialing for Small-Biz Dollars


In the half-century I’ve been around, I’ve seen arrogance be variously acceptable and unacceptable in mainstream culture.

Three-year-old Rhode Island-based roofing company AS Enterprises had a big, albeit common, problem: not enough customers. Owner Ann Marie Appleton had tried offering free estimates in local circulars and flyers, but her competitors were doing the same, and the resulting leads were lukewarm at best. She considered an ad in the SuperPages yellow pages, a division of Verizon (VZ) spin-off Idearc Media (IAR), because of its large distribution and solid reputation, but the next edition wouldn't be delivered to homes for eight months.

Eventually, Appleton's sales representative sold her on the idea of a monthly agreement for the company's new Pay For Call service, where businesses pay for each call made to their business via SuperPages' online local search results.

Appleton couldn't be happier with her choice. The service costs around $600 a month, depending on how many times her ad is served and how many calls she gets. AS Enterprises totaled more than $240,000 in sales in 2006, up from just $60,000 the year before, and Appleton says a good 70% of that business came directly from her pay-per-call advertising.

Calls Over Clicks

People used to call just for the free estimate, says Appleton, but those who call from SuperPages are ready to do business. Her closing rate on calls went from 25% to between 60% and 70%, and her call volume has tripled. Since the service requires that she bid against other businesses, each call costs about $25, but Appleton says she'd gladly pay twice that. "It pays for itself with just one job, and I get between four and eight good jobs a month," she says.

Princeton (N.J.)-based research firm The Kelsey Group estimates that the pay-per-call market will more than double each year for the next five years, with revenues reaching $3.7 billion by 2010. "Call tracking will live side-by-side with pay-per-click, e-mail tracking, coupon prints, and other measurable consumer actions. For off-line businesses in the service sector (painters, roofers, etc.), calls will have a higher importance than clicks," says Matthew Booth, senior vice-president and program director for interactive local media at Kelsey.

Small-business customers like Appleton say it offers a better return on investment than pay-per-click advertising and suits the needs of businesses that often can't close a sale via the Web only (see BusinessWeek.com, 1/29/07, "Small-Biz Ads: The Year of the Web").

Dropping the Dime

Still, the acceptance of pay-per-call by no means signals the end of pay-per-click; in fact, that market continues to grow. But some small-business advertisers are getting outpriced by their larger counterparts (see BusinessWeek.com, 1/22/07, "The Small Fry Sour on Search Ads"), leading them to look for alternatives.

Most pay-per-call advertising services work like this: First, companies bid for placement on keyword searches. Then their ad is served to the user based on location, and the company is charged each time a user calls; the ad itself is placed for free. When companies register with most providers, their site is assigned a unique phone number that appears in the ad, so that the company can track how many calls actually come through the pay-per-call advertising system. Businesses only pay when someone searching for their product or service picks up the phone and calls them.

Some companies think that the local nature of the product will bring in loads of new advertisers. Ingenio, a San Francisco-based local search advertising company with 110 employees and more than $100 million in annual revenue, is one that's betting that the torrid growth rates of pay-per-click advertising can't continue forever. "Everyone focuses on the 500,000 U.S. businesses targeted by pay-per-click, when there are 13 million businesses not engaged online at all, and 70% of them don't have Web sites," says Ingenio Chief Marketing Officer Marc Barach.

Serious Callers

Therein lies an untapped demand that's making companies like Ingenio salivate. Through their bidding system, Ingenio, like SuperPages.com, has created a virtual market that dictates its own pricing, much like the pay-per-click model. Barach says prices vary across different industries and for different services. Legal-service ads draw higher prices than those from hair salons, for example. And when tax time is peaking, Barach says the price of placing tax-service ads on portals such as AOL (AOL) and MSN (MSFT) goes through the roof.

Barach thinks the advertiser's return on investment more than makes up for the higher initial price of pay-per-call vs. pay-per-click. He says the average conversion rate on a pay-per-call ad is three to five times more successful than a pay-per-click ad in a field like legal services, and that rate grows to eight times for smaller purchases like flower shops. "The reason is that people who are clicking to read Web sites are in the research phase, and people who are calling the merchant aren't doing it for entertainment. Hence, these things convert more."

Get Them Talking

Google (GOOG) is currently at work on its own pay-per-call service, which already works as a part of Google Maps but hasn't yet been offered to U.S. small businesses. In that system, users click on an icon for a restaurant, enter their numbers, and an outside provider connects the user and the establishment. The company has already launched a formal pay-per-call product in India, says Rohit Dahawan, a product manager for Google that oversees the click-to-call and pay-per-call products. And they're working on more such products, to be launched in the next several months in the U.S. They've also started tracking calls as part of their updated small-business AdWords service.

When deciding with whom to advertise, small businesses try to keep in mind the eventual placement of their ads and the amount of traffic that will see it. SuperPages.com had 2.8 billion searches in 2006; Ingenio's network of AOL and MSN reached more than 1.1 billion searches. Says Robyn Rose, vice-president of Internet marketing for Idearc Media, "Having a heritage in the yellow-pages business, we know that about 70% of companies are service-based. Most want to conduct business over the phone."


Tech Tools TutorialHow to Start a 501c3 Nonprofit Organization
Time Change Could Be Trouble

Labels: , , , ,

Saturday, June 9, 2007

Entrepreneurship Booming in Emerging Economies


Internet Scams or Internet Fools

Start-up activity grew in China and India in 2006, but fell slightly in the U.S., according to a new study.

Developing countries have experienced a boom in entrepreneurial activity over the last year, while entrepreneurs in the United States have created most of the 6.8 million new jobs added here since 2003. Those are among the key findings of new research released this month by Global Entrepreneurship Monitor (GEM).

The eighth annual GEM report measures entrepreneurial activity in 42 countries by surveying more than 2,000 people in each country. The 2006 data show a systematic relationship between a nation’s economic development and its level of entrepreneurial activity. Countries with the lowest Gross Domestic Product have seen a rise in start-up activity, according to the report. In the United States, on the other hand, early-stage entrepreneurial activity among people 18 to 64 years old fell to 10 percent from 12.4 percent in 2005. Among the countries in the survey, entrepreneurial activity is highest in Peru at 40.2 percent and lowest in Belgium at 2.7 percent, according to the report.

GEM researchers explain that the percentage of start-up businesses is higher in the poorest countries because there are fewer alternatives available for making a living in those places. Developing countries tend to foster innovation, creating room for entrepreneurs to replicate something locally that has been produced elsewhere, according to Maria Minniti, Research Director for the GEM Consortium and professor of economics and entrepreneurship at Babson College in Wellesley, Mass.

New business start-ups also rose significantly in China and India this year. Entrepreneurial activity in China is up to 16.2 percent from 13.7 percent last year. In India, meanwhile, one in every ten people is engaged in entrepreneurial activity, the report shows. But India also has the highest level of failed start-ups--at 15 percent--among the nations studied. Governmental bureaucracy and the presence of large companies in India make it more difficult for start-up companies to establish themselves, GEM researchers note.

For high-income countries such as Japan and the core nations of the European Union, early-stage entrepreneurial activity remains low, at 10 percent or less. While the proportion of people starting businesses in the U.S. dropped slightly in 2006, the level of entrepreneurship remains high compared to European countries such as the United Kingdom, where it hovers just above five percent.

Even in low-income countries, entrepreneurs are often driven by passion and opportunity, the study found. A majority of entrepreneurs across the world claim they are starting a business to capitalize on an opportunity, according to the report. Reasons for choosing the entrepreneurial lifestyle include the desire to be independent and to be passionate about work, Minniti said. "Satisfaction is a big motivation for productivity," she added. In high-income countries, this translates into high percentages of entrepreneurs forsaking other career options to pursue an entrepreneurial opportunity. In Denmark, Norway and the Netherlands, that type of opportunity-driven entrepreneurship accounted for more than 90 percent of new start-ups.

Go to source.
10 Marketing Tools for Home-Based BusinessesNervous About Writing Your Business Plan?
Common Small-Business Scams

Labels: , , , ,