Welcome to the FreshBooks Tax Thursdays series! We know a lot of small businesses struggle with taxes, so we’re hoping to help make it a little easier by featuring advice from leading accounting professionals every second Thursday from January to April. Today CPA Chad Shultz walks us through tax write-offs for small businesses in the US.

As an owner of a small business, staying aware of the day-to-day operations of the business is a priority. At this time of the year, however, an owner must also be considering tax strategies for the business and write-offs are key for helping reduce the amount of income tax you need to pay. In light of this, here are 7 essential things to know about writing-off expenses and some common mistakes to avoid:

1. Car Expenses

Using a vehicle for business is quite common; when filling out your return, you will need to calculate the cost of this expense using either the Actual Expense Method or Standard Mileage Deduction.

The Actual Expense Method allows the taxpayer to write off actual out-of-pocket costs plus depreciation if he or she owns the car. Examples of expenses include Depreciation, Licenses, Tires, Loan Interest, Tolls, Gas, Oil, Towing, Insurance, Parking Fees, Registration Fees, Lease Fees, Repairs and Garage Rent. Keep in mind that parking and traffic tickets are not deductible. Also, if the car is used for personal and business, then a percentage of use needs to be determined and the business percentage is what the owner uses for the business write-off.

If you opt for the Standard Mileage Deduction, then track the business mileage and multiply that the IRS rate (i.e., $ .555/mile – July 1-Dec. 31, 2011); the total is the deduction.
To track you might use a mileage log or a smartphone app. An example of a business mileage log includes: Date, Destination, Business Purpose, Odometer Start/Stop and # of Miles. Auto expenses are also tracked with the type and amount spent (i.e., toll).

2. Travel Expenses

Airfare is deductible but if the taxpayer uses frequent flier miles to purchase a particular ticket, the cost of the airfare cannot be deducted. The taxi from the airport to the hotel, as well as transportation costs to go to a customer, including bus and limo costs, lodging, and meals (food, drinks, tax and tip) qualify. Other deductible items include the reasonable cost of cleaning/laundry, tips to the taxi driver, meals, bellhop, telephone costs to your office, receiving a fax, and computer/cell phone rental. These are based on actual costs and not per diem travel rates.

3. Business Gifts

You can deduct up to $25 per person per year, so keep in mind that if the business owner purchases a $30 bottle of wine for a client, only $25 is deductible. Some people also get confused with “gifts” vs. entertainment. If you give someone a ticket that costs $20 to a ballgame as a gift, then you can deduct this. If, however, you code it as entertainment, it may be subject to the 50% rule, making it a $10 deduction.

Make sure receipts are kept for any of the gifts, expenses with notes, showing the date, the person the purchased meal/gift is for, purpose of meeting/gift, and any other pertinent information. Suggestion: scan their receipts, since most receipts are on thermal paper that fades.

4. Repairs

The cost to repair business equipment or property is deductible, but be sure you make the distinction between “repair” and capital items. For example, if you replace an air compressor in the business air conditioner, that is considered a repair vs. adding a new air conditioning unit, which is a capital item.

5. Rent

Rent expenses are deductible, along with other terms of a lease (i.e., property taxes.). Many make January rent payments in December. If the business is using cash basis, then it will be deducted with the current year. If the business uses accrual accounting, then it must be capitalized.

6. Advertising

Deductible advertising expenses include business cards, print/radio/TV ads, yellow page advertising, package design costs as part of advertising campaign, billboard rental fees and signs on the side of cars/trucks, and PR expenses, including fees, event fees and costs of press kits.

7. Small Expenses (that can add up)

Dues and Subscriptions: Dues for professional, business or civic organizations are deductible (i.e., American Bar Association, American Marketing Association), Chamber of Commerce and Rotary. However, athletic, sporting, airline or hotel membership costs are not, even though they are business oriented. Business and professional publication subscriptions are deductible.
Legal  and Professional Fees: These fees, which include legal, accounting and tax prep, and appraisal fees, are deductible.
Bank and Merchant Fees: Bank-related fees, such as monthly, ATM and online banking costs, as well as merchant service fees, including Pay Pal related costs, are deductible.
General Office Expenses: Office supplies, postage, books, cleaning/janitorial services, flowers and  plants, snacks and beverages, are all deductible.

For specific information about tax write-offs for your industry visit the IRS.gov Small Business website, where you’ll find information that IRS agents use for examining returns. Another resource is the IRS’ Self Employed Individuals Tax Center.

- Chad Shultz, CPA www.shultztax.com

This is a guest blog post that appeared on the RightSignature blog. RightSignature is an add-on service to FreshBooks that allows you to send invoices and estimates to clients for signature with just a few clicks.

It’s usually good news when a small business or freelancer lands a new customer. But the situation can quickly turn sour if you’re not careful about managing client expectations. Does the customer understand what they’re buying? Is there any chance that the client might think you’ll deliver one thing, when you planned to deliver something else? The risk exists if you don’t follow these five pieces of advice: use a contract, communicate, build a relationship, keep your word, and over deliver.

Use a Contract
By laying that groundwork at the beginning of the job, it’s much more likely that the customer will be happy with the finished product. In a contract you can lay out exactly the terms of the project – deadlines, who’s responsible for what, and of course the amount of money involved. It’s the first step in ensuring both you and your client understand what to expect. You can use FreshBooks to generate a detailed invoice, and then send it to the customer via RightSignature for legally binding electronic signature.

Communicate
Use your words! Keep your client informed as to project progress and issues (including potential solutions for the occasional problem). Many freelancers rely on email to connect with customers, using their email programs as veritable repositories of information, including details about when, exactly, the client agreed to push back the project’s deadline, for instance. In fact, email may be better than other forms of communication (texting and voice particularly) for permissions because it lets you go into detail, and people tend to save emails, so you can check back for verifications later.

Build a Relationship
But email certainly isn’t the only form of communication you should use. It can be somewhat cold and impersonal. Pick up the phone and speak to your customers every once in a while. That can help you build a relationship with your clients, and it helps remind them that you’re not just a distant service provider. You’re a person. That can help you smooth over mistakes (when they happen). After all, it isn’t so easy to write off a work relationship when there’s a personal connection as well.

Keep Your Word
Did you commit to participating in your customer’s conference calls? If so, do so. Did you agree to a deadline? If so, meet it. It’s particularly important that you should keep your word on small details, because if you can’t meet the little expectations, your client may conclude you’re incapable of meeting the larger needs involved in the job.

Over Deliver
Aim to go above and beyond the contract. Throw in extras – services, recommendations, support, follow-up – whatever will make your client take notice. If you do manage to over-achieve once in a while, your client could come to see you as someone she can count on as a valuable business partner, not just a vendor. That puts you in a different class of service provider, and it could translate into more business down the road.

If you’re a small business and receive funds via credit cards online, or other online payments from your clients, you can anticipate receiving a 1099-K this coming tax year. The 1099-K is the IRS’ latest tax form for small business, which is provided directly to the IRS from your online payment provider (such as PayPal). You will also be receiving a copy, so you can match it to your own record of online payments (always important to double check). Essentially, this form is a record of your revenue from your online payment provider that will be directly reported to the IRS. The form will look like this:

Since your payment processor will be reporting your revenue directly to the IRS, it will actually cut down on your paperwork. You will not need to report it in the other 1099 forms (make sure you don’t double-state your income, as that would mean more taxes.) The most important thing to do is to record all your expenses (write-offs and deductibles) and file your return quickly to ensure you do not over pay your taxes. Also, make sure to report your PayPal or other merchant fees as a separate expense, as they will not be included in the 1099-K.

Clarification update: The income on your 1099-K still needs to be included on your Schedule C, as per usual.

Essentials:

• Payment providers may ask you for your Tax ID Number (TIN), Social Security Number (SSN) or, if you have one, an Employer Identification Number (EIN). You can get an EIN here. An EIN is a great alternative and preferred by many people doing business online to protect their SSN number.
• Only businesses that do over $20,000 in online sales and 200 transactions will receive a 1099-K
• The form only reports your business name, address, tax id number and gross credit transaction (not deductible merchant fees).
• If you have multiple merchant accounts or PayPal accounts, one 1099-K will issued for the same SSN/TIN/EIN, following the policies above.

In short, you do not need to do anything, other than make sure you do no overstate your income in other tax forms, and be sure to deduct all your relevant expenses, especially your merchant/PayPal transaction fees.

If you need more information, as always, talk with your accountant/bookkeeper, as they’re the experts. And, there is always the IRS’ 1099-K instructions. PayPal also has written a FAQ.

Welcome to the FreshBooks Tax Thursdays series! We know a lot of small businesses struggle with taxes, so we’re hoping to help make it a little easier by featuring advice from leading accounting professionals every second Thursday from January to April.

Last year, individuals who qualified for tax refunds were awarded an average of $2,887, up 8 percent from the previous year (for anyone who’s counting that means 721 more lattes and 300 more hours productivity). While there’s no guarantee that you will receive a refund, there are steps you can take that could not only potentially lower your tax bill and enhance your overall financial situation. What should you prepare for your CPA (Certified Public Accountant)? What can you expect? The Massachusetts Society of CPAs recommends you ask your CPA the following five questions to spot money-saving opportunities:

Question #1. What information do you need from me?

To help give your CPA identify deductions or other tax-advantaged opportunities; expect to spend some time sorting through your receipts and account statements in preparation. This advance organization won’t take a direct bite out of your tax bill but will help you avoid unnecessary trips bringing your CPA new documents as you find them. The earlier you can provide the complete picture of your financial situation, the better. Try to categorize your documents into groups such as business vs. personal expense receipts, or statements of investment vs. earned income. If possible, add up the amounts in each category and print off any expense reports you have to give your CPA the overall summary.

Question #2: Are there any special ways I can save on taxes this year?

By talking to your CPA about major projects, purchases or investments from the past year you’ll find out if any of them trigger tax advantages. For example, did you know that it’s possible to receive a credit of up to 30 percent for qualifying residential energy efficiency enhancements, up to a maximum of $1,500 for improvements placed in service in 2009 and 2010? And because it’s a credit, you can subtract that amount directly from your taxes owed. Your CPA can tell you whether you qualify for this and other money-saving credits or deductions.

Question #3: What should I do now to save on taxes next year?

Did you qualify for all the deductions available to you? Could you be paying less in taxes? Your CPA can analyze your return and tell you what changes might help you to lower your bill in the future. For example, are you contributing the full allowable amount to a retirement savings plan? If not, you may be missing out on some significant tax advantages. You are also giving up the chance to get a head start on what could grow to be a significant nest egg when you’re ready to retire.

Question #4: How can I get a big refund?

Refunds sound like good news, but if you expect to receive a large one this year, that may be a sign that you’re having too much withheld from your paycheck. Refunds are really money the government has been holding on to that you could have been using yourself during the year. Ask your CPA about whether adjustments to your withholding or estimated payments are called for.

Question #5: How else can a CPA help me?

Taxes are just one small piece of the financial puzzle, but the time you spend thinking about your finances at tax time can help identify smart changes you should be making in how you manage your money. Remember that your local CPA has the expertise to help with all your financial questions. Turn to him or her when you want the advice you need to make smart financial decisions.

About the Massachusetts Society of CPAs:
The Massachusetts Society of Certified Public Accountants, Inc. is the state professional association of certified public accountants, representing over 10,000 members in public accounting practice, industry and business, government and education. The Society works to develop and maintain high professional standards and offers a wide array of legislative, technical and referral services to its members. Check out the MSCPA website or the FreshMap to find an accountant near you!

Want more Tax Thursdays? Read the last post in the series, why it’s never too early to prepare for tax season.

As part of our series on helping folks get paid for their work, this guest post is written by the RightSignature team to share some ideas on how to avoid contract nightmares. RightSignature is a tool that lets you get documents signed online and integrates with FreshBooks.

Whether you’re a freelancer, contractor or small business, having a solid service contract in place can be the difference between payday and days of anguish. A contract is ideally brief yet effective but most importantly must cover the terms that are critical to protecting your business. When you’re building contract agreements, here are 6 terms that your contract should include as a minimum:

1. Service Description and Parties’ Responsibilities

Thoroughly and accurately describe the services you will be providing, including deliverables and standards for acceptance. List both parties’ responsibilities, with a focus on what you need from your client to complete your work.

2. Billing Milestones

Establish a timeline of billing milestones, with event triggers or dates as well as fees. Specify invoicing terms and consequences of unpaid bills (e.g. work paused).

3. Ownership

Clarify who owns all of the properties specifically mentioned in the contract, as well as any properties that might not be mentioned, but could come into existence as a result of the contract. Note the exact point in time at which ownership rights to work product pass from you to the client.

4. Jurisdiction

Identify which state’s laws will be used to govern the contract, and where any lawsuit will be litigated. Establishing jurisdiction in your state can deter an out-of-state client from suing you.

5. Liability

If something goes wrong, your liability should be limited to the value of the contract or any amounts you have received from the client. As an example, if you miss a deadline and as a result your client loses a $100,000 opportunity, you want to be sure you’re not on the hook.

6. Modifications and Termination

Clients change their minds, so be sure to describe the costs of any change orders. Require that changes must be made in writing, to avoid “he said, she said” disputes. List the scenarios, if any, under which you or the client may terminate the contract, including guaranteed payments in the case of termination.

Most importantly, be sure to get your contract signed before you begin work. RightSignature lets you send your agreement to the client for legally-binding electronic signature online which means no paper, no faxing, and no waiting. Your clients review and sign in any web browser (or even on a mobile device), and you receive the executed contract immediately. When you send a concise, well-crafted contract, clients will be impressed by your professionalism.

Note: the above is a general set of rules about writing contracts but does not constitute legal advice. Consult a licensed attorney to review your contract.

What will 2012 hold for small businesses? We asked a handful of business trend-watchers and business owners for their opinions on how the coming 12 months will likely shape up. Their verdict? Overall, businesses will build on the social media lessons they learned in 2011, and will turn to technology to boost productivity and flexibility. Next year will also bring employee-recruitment challenges, and it will bring about a new appreciation for relationship building as an important stepping stone towards financial success.

1.    Tech Labor Shortage

Hall Martin, director of the Austin Entrepreneur Network, believes that small businesses in this Texas city often find it difficult to corral the technology expertise they need to bring new products or services to market. “Technical labor is a big challenge in this part of the world,” he says. Businesses of all sizes will lean more heavily on cloud-based software to facilitate project and client management as an increasing shortage of technology labor affects businesses in 2012.

2.    Freedom & Flexibility

Companies will embrace videoconferencing more than ever next year in an effort to be more flexible, especially when it comes to employees. Brian Difeo of Hive at 55, a Manhattan co-working facility, says the latest generation of potential employees insists on being able to work wherever they feel most productive. If that means at home, on a customer’s premises, or at a café, businesses will need to offer ways for those employees to keep connected.

“While videoconferencing has been around for a while, typically it’s only used by a small percentage of professionals. I think that’s going to grow,” Difeo says.

3.    Be Where Your Clients Are

Many businesses took keenly to social media in 2011, using sites like Facebook and LinkedIn to broaden their reach to customers. In 2012, forecasters are saying that while some companies will deepen their use of social media and roll out integrated social networking programs, some businesses will abandon social media altogether. While the commercial zeitgeist suggests every company should use this technology, in 2012 organizations will scrutinize the benefits carefully to avoid wasting an investment that may be better placed in traditional media, as that may be where clients are.

4. Tough Customers

Here’s something that isn’t going to grow: customers’ willingness to pay more. Jayme Soulati, head of PR firm Soulati Media Inc. in Dayton, Ohio, says many businesses have been discounting their products and services since the start of the recession. As the economy struggles to its feet, clients won’t want to go back to paying pre-collapse prices.
“It’s the new normal,” she says. “Unfortunately, consumers have become spoiled.” For 2012, businesses will either find ways to reduce their own costs to restore margins, or they’ll zero in on the few customers who may be willing to pay more, given exceptional service and best-of-industry products. Relationship building will be the key to winning over those clients, Soulati says.

5.    Tough Lending for New Small Biz

Want to borrow in 2012? Prove you’re worth the risk. “Banks aren’t going to open their purse strings to SMBs that don’t have incredible credibility,” Soulati says.
Businesses trying to win over banks and other lending institutions will have a tough audience next year. While lenders will be more willing to lend in general, they won’t be willing to lend to businesses that lack excellent business plans – and in this day and age, you can bet that a number of new companies (many started by people who until recently had traditional full time 9-to-5 employment) are vying for the banks’ attention.

What do you think will be trending in 2012? Vote for one of these five below or tell us what you see for the future!

Are you still dreaming of the paperless office? Meet Francois (@francoisbotha), an ambitious business owner in Cape Town who manages his whole business in the cloud – only the creative ideas are sketched out on paper. Maybe that’s why he looks so relaxed?

Francois uses FreshBooks to manage his invoicing. He also uses Podio’s platform for online collaboration, managing projects and to connect his invoice data from FreshBooks.  Combined, these two tools allow Francois to be “in the fortunate position of never having to deal with paperwork.”

Want to find out how Francois made this work? Register here to join Podio and FreshBooks in an online conversation with Francois about how he runs his business on December 6th, 5pm CET / 8am PST. There’s limited space, so make sure to sign up soon. In the meantime, here’s a quick Q&A with this creative entrepreneur:

You’re running two pretty nifty-looking businesses in South-Africa – can you tell us more?

Thanks! South Africans are quite entrepreneurial and being based in Cape Town (which was just chosen as World Design Capital 2014) we’re seeing the rise of a creative hub. The digital world is part of that creative growth, and both businesses are online-focused. Quickonline does website development and AUGUST produces and distributes online video content.

A video made by AUGUST capturing what goes on behind the scenes at a fashion shoot.

How did you cope with all that paperwork before you discovered FreshBooks and Podio?

I am in the fortunate position of never having had to deal with paperwork. Right in the beginning we used Word & Excel to create estimates. Honestly, I actually had to employ someone to make sense of the paperwork that I had. Thankfully this is the case no more. I discovered FreshBooks when I was looking for a way to bill subscription services to clients and Podio was actually suggested to me by an ex-employee who came across the service while in its very early stages.

How do you use Podio together with FreshBooks and what’s helping you the most?

I am using Podio to extend FreshBooks and still retain a central view of clients and activities surrounding them. In the future I’ll build this out to have a truly holistic picture of my clients and our relationships. We mainly use Podio to track leads & our sales pipeline – the quick overview Podio provides is awesome for project management within our team. Being able to customize the apps to suit our requirements definitely helps with the internal adoption process as the team doesn’t feel they need to change for the software. And finally, I am a fan of having our apps in the cloud, this way, even when travelling the world (which we all love doing as often as possible) everything is still only a click away.

Your businesses seem relatively young but already have a great customer track record – can you share any tips for other business owners?

I’ve been working in various projects/companies since I was quite young, but three things that jump out:
1. As my Business Management lecturer said – “Fake it till you make it.”
2. One of my mentors always said – “Pick your clients. Don’t wait for them to pick you.”
3. And just like they advised during the wartime – “Keep Calm & Carry On.”

On your profile it says “living by Ghandi, learning by Google” – seems like an interesting life philosophy, what’s the deal?

In short I think it translates to live your life in a way that is peaceful towards those around you, while you keep searching for knowledge and educate yourself in the millions of new things happening on a daily basis.

Thank-you for sharing your story, Francois!

To share more tips on getting rid of invoicing hassles, running projects successfully and keeping clients happy, we will be hosting a webinar with Podio and Francois on December 6th @ 8am PST / 5pm CET. Space is limited so make sure to sign up soon. Register here.  

Accounting guru Eric Matthews from thatbookkeeper.com gives us a special preview of our upcoming Tax Thursdays series! We know a lot of small businesses struggle with taxes, so we’re hoping to help make this a little easier by featuring advice from leading accounting professionals every second Thursday from January to April. Don’t miss it!

For some of you, you’ve spent the whole year preparing for tax time. You make sure you ask for receipts from the cashier, mark what’s office supplies and what’s personal and even scan them to keep a digital copy, just in case. And then the moment that final tax slip shows up in the mail, you sit down and get started. An hour or two later, you’ve got the return triple-checked and ready to go.

For the other 99.9% of people, however, tax time happens a bit differently. The files to remember are in that 3 ft tall pile of “keepers” (a pile that also contains personal receipts, overdue utility bills, and 3 month old flyers). When you realize that the April deadline is looming near, the final few days usually turn into a blur. Fueled by panic and coffee, you manage to get to the end of the return. You have no idea if it’s accurate. You may have forgotten about hundreds of dollars of deductions you could have claimed. The goal becomes about just getting it done. You promise yourself that, next year, it will be different.

Well, guess what? It’s next year! To avoid the tax season scramble and to keep your promise to avoid history repeating itself, you’ll need to decide on one of two approaches now before the year is out:

Option #1: Buckle down and DIY

To take on taxes yourself, you’ll need a strategy. Begin by setting aside some time each week to get prepared. Don’t try to do this all at once. Start by getting all of your important files into one location; preferably one folder. If your tax documents only contain one tax slip (W-2, P60, T4 etc.) and minimal deductions, submitting taxes should be simple. Unfortunately, chances are this scenario doesn’t apply to you and there are some added pieces to worry about. Here are some things you’ll probably need:

•     bank statements (for all accounts)
•     PayPal reports
•     all the -useful- receipts
•     loan & investment documents
•     a copy of any good 2011 tax preparation software
•     caffeine (I prefer Diet Dr. Pepper, but you may need something stronger)
•     good music (it could be Bluegrass or Death Metal…as long as it helps you focus)

If you track your info (using something like FreshBooks, for instance), then you should prepare for tax time by downloading all the relevant reports (like Profit and Loss and Expense reports) as well.

If you’re not sure what paperwork you need, do a dry run through the tax prep software (such as TurboTax or whatever you use). As it asks you for information, write down a list of things that you’re missing. This is a good way to find out about deductions you haven’t been claiming. These tax programs don’t make you do it all in one pass. Fill in the information you have, and save the return. When something new shows up in the mail, enter it and save again.

Option #2: Trust Someone Else

Hiring an expert to take on some of the business tasks you might not love is something to seriously consider. When you select “someone else,” be as picky as possible about who you choose. By starting early you’ve got time to screen tax preparers, a step you can’t afford to omit. By mid-April, everyone and their dog has an ad on Kijiji extolling their virtues. They will promise to maximize the returns for you and all your extended family for $19.95. Instead, ask your friends and family who they use. Ask people in your social networks for referrals. Heck, you could even read posts on invoicing software blogs, and ask the authors of said posts for advice.

Even when you find someone who you can trust, you’ll still have to get all the paperwork in order. Well, not in order per se but at least in one pile. Then, all you need to do is drop it off with someone else and let them handle it.

Overall, whichever path you choose just be sure to choose one. If you start early, the only bottleneck will be how fast other people mail you your slips and receipts. So, by the end of February, you should be ready to file. Aside from the obvious stress reduction of filing early, you’ll probably get your return back faster too. There aren’t nearly as many people filing in February, so the turnaround is usually very fast. You’ll have your return in the bank before your friends realize it’s time to panic. You’ll save yourself a big headache in April, and maybe some money too.

Eric Matthews is the author of thatbookkeeper.com, a blog dedicated to helping small businesses get the most out of their resources, with a focus on Bookkeeping.

Feedback on your idea has been nothing but positive and you’re feeling ready to set sail into entrepreneurship. But wait, now it’s time for the business plan. Where do you start? Your goal is to develop the brilliant ideas haphazardly scribbled in your mental notebook into an eloquent and concise document that leaves your client hungry for more and ready to sign. First, take a breath and then mull over these ideas for assembling a bulletproof biz blueprint:

Do your research

Before you begin the process of convincing your audience that your business is the latest thing – make sure it is. Inc Magazine recommends writing a detailed outline that more or less summarizes the “story” of your business. Find out who your competition is and identify their strengths and weaknesses. By comparing your ideas to those already in motion, you can quickly assess where your own plan excels and falls short. This way, you can improve your business before it even begins and once it hits the market, you’ll be ahead of the game!

Identify Your Key Audience

One major element to writing a top tier business plan is tailoring the plan for a specific audience and telling them what they need to know. Inc advises carefully breaking the plan down by each target you wish to attract. Are you trying to recruit a business partner, attracting new customers, or applying for a loan? Regardless the audience, ensure you have included detailed cost and ROI projections that are measurable and realistic. Especially in the case of lenders, they’ll want to know that you’ve considered the practicality of your plan and aren’t relying on wishful thinking and unlikely gains in the market.

Summarize Your Ideas

Another headline for this section could be, “Get to the point.”  First of all, it’s important that you summarize your ideas for yourself – this indicates that you have a solid grasp of your plan and are thinking critically about the steps you have to take to ensure your success.  Additionally, lenders and potential partners alike have no interest in flowery phrases or winding word patterns. If you can’t tell them in a few short and direct sentences what you’re trying to accomplish and why they should care,  not only will they not take you seriously, they’ll quickly move on to the next proposal. And don’t forget the business plan’s executive summary, which lends your plan legitimacy because it shows how you are your team are qualified.

Acquire a Business Template

Sometimes, project managers and lenders like surprises. It shows creativity and gumption. However, while it’s important that your business plan stands out from others, its written structure absolutely should not. Every industry has a set procedure and if you make up the rules, you’ll be banished to the bench and labeled a rookie. Your audience will be expecting certain industry jargon, certain headlines, and categories that follow each other in a precise manner. Basically, they don’t want to guess where you’re going or feel as if they have to thumb through the pages to get to a certain topic – they expect to know from the get-go. The U.S. Small Business Administration’s template is a great place to start.

Consult Industry Experts

At this point, you’ve probably done enough research to cover your bases. You’ve considered the financial risks, you’ve identified your intended audience, and you know exactly what you aim to accomplish and how. You’ve even read the business plans of similar business, just to make sure there are no surprises.  But, it never hurts to get a second opinion. Experts have been where you are hundreds of times and they’ve encountered every surprise – including the ones coming your way. They can give you solid advice on what to remove, rework, or reinforce.  Best of all, they can ask the types of questions that your audience may have in mind and get you thinking about how to answer those questions and soothe potential fears before they even come up. Thus, you’ll be one step ahead in both research and response, giving your plan the potential to move quickly from presentation to execution. For a list of ideas and resources for business plan consultants, check out Entrepreneur magazine.

Who helps your biz fly?

According to the Global Entrepreneurship Monitor (GEM), a non-profit academic research group, 110 million people around the world were involved in starting a business in 2010, and another 140 million were running businesses they began 3.5 years ago. Of that 250 million total, 63 million expect to hire at least five employees over the next five years.

Since start-ups are clearly impacting global work trends, what sorts of initiatives are governments undertaking to offer support entrepreneurs?

Across the pond, the UK federal government has created East London Tech City, a hub for high-tech companies like travel planning social networking service Dopplr, music service Last.fm and music news site Songkick. Prime Minister David Cameron said the initiative is meant to challenge Silicon Valley and take at least some of the high-tech thunder away from the U.S. west coast region.

Not everyone, however, is convinced that it’s the best idea. Warren East, head of microchip maker ARM, told the Financial Times that while it does make sense for the U.K. to foster technology entrepreneurship, it doesn’t make sense for the country to copy the U.S. model. “We cannot win by being a ‘me too,’” East says. He’s in favor of fostering existing technology clusters that make digital-equipment components, like chips and software. Whereas Silicon Valley companies put various pieces together for overarching high-tech solutions, the U.K. could come to be known for making the best individual parts that go into the U.S. systems, East says.

While some think the UK government’s on the wrong track, Canadians seem to think their government is missing the mark on entrepreneurship as well. The Canadian Federation of Independent Business (CFIB), microchip maker Intel and technology provider HP found via survey that 83 per cent of Canadians feel that governments undervalue entrepreneurs, and 71 per cent don’t believe there is enough emphasis on entrepreneurship as a career option in schools.

Still, Canadians seem to respect entrepreneurs: 94 per cent said they admire entrepreneurs, and 92 per cent would approve of their child or an immediate family member starting their own business; 95 per cent value the products, services and personal attention that they get from a small business, and 98 per cent say small business is important to the country’s future.

Entrepreneurship is a hot topic in the U.S., too. In an interview with Harvard Business School, professor and author Josh Lerner argues that governments have an important role to play in fostering new businesses. He points out that the recession presented some serious challenges – but also opportunities for a better connection between governments and innovative business leaders.

Several governments (eleven in fact) are demonstrating support for entrepreneurship by participating in Global Entrepreneurship Week (GEW) in November. The feature event of the week, Startup Open, is a global competition recognizing the top 50 most promising ventures in the world each year (you can see the winners here).

With more than 100 million people starting their own companies each year, what else could governments do to support new business?