​Causes to Check Out, With Local Ties

As you may know, I am a networker. I am involved in a few organizations (many of them with events highlighted above). I get to meet some great business people and many of them focus any spare time they have to a cause. I wanted to highlight a few of them today.
 
1. Rotary Club
Rotary's International goal is to rid the world of Polio. Local Clubs, support that cause and even more! I am a member of Rotary Club of Schaumburg/ Hoffman Estates (Meets on Fridays at Noon in Schaumburg.  

2. Walk to End Alzheimer's
I have known Kari-Ann Ryan for many years and in all that time, she has spearheaded a movement to End Alzheimer's. Her life has been affected personally. You can also be added to her email list for all the events she organizes, by emailing her: kari.ann.b.ryan@gmail.com

3. National Association of Parks Foundations
The NAPF's vision is to build effective, active, local park foundations, volunteers and other citizens that support their park systems to enhance the park experience in their communities. These Park Foundations usually provide funding for Park District Activities for people in the community that generally cannot afford them.
 
Please contact my longtime friend,  Donald Ortale, Executive Director of NAPF, to learn more about how you can help. Call him at 630-965-1000 or email dortale@ortaleassociates.com 
 
4. The Business Ledger- 2020 Guide to Business Philanthropy & Social Responsibility
This is a list of notable local nonprofits and charities. 

#GivingTuesday is a global day of giving fueled by the power of social media and collaboration.
 
The following is a summary of a full article at Charity Navigator:
 
A gift to a qualified charitable organization may entitle you to a charitable contribution deduction against your income tax if you itemize deductions.
If the gifts are deductible, the actual cost of the donation is reduced by your tax savings. 

• A contribution to a qualified charity is deductible in the year in which it is paid. 
• Most, but not all, charitable organizations qualify for a charitable contribution deduction.
• You can deduct contributions only if they are made to or for the use of a qualified recipient. 
• An organization could lose its charity status if it devotes a substantial part of its activities to formulating propaganda or otherwise trying to influence legislation. 
• There are limits to how much you can deduct, but they're very high.
• Rules exist for non-cash donations.
• Remember to document.
• Organizations to Which You Can Give and Deduct Your Donation:
  • Churches and other religious organizations;
  • Tax exempt educational organizations;
  • Tax exempt hospitals and certain medical research organizations;
  • A government unit, such as a state or a political subdivision of a state;
  • Publicly supported organizations such as a community chest;
  • Certain private foundations that distribute all contributions they receive to public charities within two-and-a-half months after the end of the foundation's fiscal year;
  • A private operating foundation which pools all of its donations in a common fund;
  • Certain membership organizations that rely on the general public for more than a third of their contributions.

Read Complete Article From Charity Navigator Here

More info from the State Of Illinois: 
​https://www2.illinois.gov/IISNews/22388-State_of_Illinois_COVID-19_Update_-_Monday_November_23.pdf

Typical Situation: Our client has seen an increase in their Contribution Rate Determination (unemployment tax rate) that is mailed to all Illinois employers on or about December 1st every year.  They also have protested their own unemployment claims but have not been successful at getting benefits denied.
 
When you hear a business owner say:
•           “I do not understand why someone was allowed to collect benefits”
•           “I hate dealing with the unemployment office as it is a no win situation”
•           “General: complaints about their unemployment claims “
 
The Consultant educates them on the unemployment laws in Illinois and to help them reduce their state unemployment taxes.
 
How they Work: They protest the claims filed against the employer and represent the employer at all unemployment hearings and go to their locations to do training sessions to educate the employer on how to handle different types of situations.  They will verify all the charges to the employer’s account to make sure they are not being charged more than they should be charged. 
 
You can introduce them:
“It sounds like you may need some help with your unemployment claims against you. I can introduce you to someone that can help. They would be happy to have a telephone consultation to discuss your situation.   

What is a “Typical Situation” people are in when they realize they need your help?
Someone who has been using the same vendors and suppliers for a long time without sending them out to bid. OR Someone who needs to reduce costs but doesn’t have the time or the staff to perform a competitive analysis.
 
What is something someone might say that would lead me to think of you?
I can’t make sense of my complicated bill and I don’t know if I am paying the right amount...or I think I am being over-charged by a particular supplier!
 
What (Specifically) do you do?
We make sure our clients are paying the right amount to their suppliers of telecommunications, credit card processing, small package shipping, electronic document signature and waste services
 
How do you do it (3 Lines Max)?

1. We review the last 3- 12 months of billings and recover any overcharges and incorrect billings.
2. Then we make sure our clients are only paying for services they need.
3. Last we negotiate new rates with current suppliers and alternative suppliers and present a report for the client to decide for themselves.

We do this service with no upfront fee. There is only a fee if we save money and the client decides to go ahead. 
 
Matching Ideas with Resources: 

SBA loans and COVID
The SBA will pay 6 months of principal, interest, and any associated fees that borrowers owe for all current 7(a), 504, and Microloans in regular servicing status as well as new 7(a), 504, and Microloans disbursed prior to September 27, 2020. This relief is not available for Paycheck Protection Program loans or Economic Injury Disaster loans. See link below.
 
https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-debt-relief

Message to Employers Regarding Unemployment Fraud

Nationwide, bad actors are using the COVID-19 pandemic as an opportunity to file fraudulent claims for unemployment insurance benefits. Many of these claims involve the theft of employees’ identities. Personal information has been stolen from many different sources in the past years, including computer hacks into the databases of some of the largest companies in the nation. This information can be used to file fraudulent unemployment claims.
 
It is likely that as an employer, you have recently seen an increase in fraudulent unemployment claims. You are not alone – this has been happening across the country. IDES is partnering with federal, state, and local law enforcement agencies in response. IDES is also partnering with employers to stop fraudulent claims in their tracks. If you receive a Notice of Claim informing you that an individual with a given name and social security number has filed a claim for benefits, please confirm if that individual is still working for you. If so, please ask whether that individual did, in fact, file a claim. We ask that you report to IDES as soon as possible what information you have obtained.
 
The best way to report fraudulent claims to IDES is by filing a timely protest to a Notice of Claim, giving IDES as much useful information as you can.
 
Additionally, IDES has an established unit that works specifically on allegations of fraudulent claims. On each day that you are made aware of the possibility of a fraudulent claim, we ask that in addition to filing a timely protest, you send one email with a spreadsheet including the following information for each instance of suspected fraud from that day: The claimant’s first name and last name, the employer name, and the claim ID (all this information is shown on the Notice of Claim).  Please send your email to both marco.morales@illinois.gov and gilbert.muniz@illinois.gov. Again, please ensure this information is included in a spreadsheet attachment – not the body of the email.
 
We greatly appreciate our partnership with Illinois’ employers to help combat fraud.
​

CDBG COVID-19 Small Business Loan - COMING SOON!
 
The CARES Act made available $5 billion in Community Development Block Grant (CDBG) funds to be used to prevent, prepare for, and respond to the coronavirus (COVID-19). The Village of Schaumburg’s allocation is $217,873. On July 28, 2020, the village approved the designation of 40%, or $87,149.20, to be used to assist small businesses with retaining their pre-COVID-19 level of employment for low-to-moderate income individuals, where at least 51% of the jobs, computed on a full time equivalent basis, involve the employment of low- and moderate- income persons. 
     
The Village of Schaumburg will provide 50% match, need-based forgivable loans of up to $7,500 for two months of eligible operating expenses and/or workplace protective equipment to small businesses (those with 1-25 full time equivalent employees) that are located within the corporate limits of Schaumburg. The village will begin accepting applications on November 15, 2020. The deadline to submit an application and supporting documents is 4 p.m. December 1, 2020. Every effort will be made to make award decisions by December 15, 2020. 
The application will be released on November 2, 2020. For more information on the program, contact Debbie Van Sickle at (847) 923-3852. 

https://www.villageofschaumburg.com/business/small-business-resources

MOTIVATION TO SELL

• Is it a motivated seller and why?
• How much debt does he need to pay off? (mortgages loans?)
• How much cash does the seller immediately need?
• Does he need that cash all at once?
• Is he looking for a way to avoid capital gains? Or reduce or spread out his tax liability?
• Are there other family members involved in the decision making process?
• Has the reputation of the company been damaged at all?
• How dependent has the business been on the current owner? Relationships with employees? Customers? Vendors?

 
STRATEGIES TO CONSIDER WHEN BUYING A BUSINESS

• Consider buying on installment
• Don't ever be shy in asking for information- your strategy is to "discover" as much as you can
• Consider holding back some of the purchase price until after closing- say six months or a year in case you suffer a loss due to the owner failing to "disclose" information
• Consider buying land in one deal and the company in another- if the two are indeed owned separately
• Consider and 'earn-out' provision where seller only gets paid if certain financial milestones are met

MARKET PERCEPTION
What is it? With Customers and Vendors?

• What is its brand position? Is it healthy?
• Do they have a good reputation?
• Do they have a customer database?
• Do they have a prospect database?
• Do they know how large their market is?
• Do they have a CRM?
• How are they perceived in the marketplace?
• Who are their key partners and alliances?
• Are their prices high? Low? Middle?
• Are their competitors who are larger, cheaper, quicker, faster that have the customer's attention?
• What are the barriers to entry to this business?
• Does the business have significant vendors or customers?
• Any vendors that we use that we purchase 10% or more of our product from?
• Any customers that make up 5% or more of revenues/sales?

Featured in the Daily Herald Business Section
This Series is being featured in the Daily Herald. Please enjoy Jim Kendall's Column:​
http://www.dailyherald.com/business/20171022/what-to-ask-before-buying-a-business ​

​

​LEGAL
What are you buying? If it is a stock purchase is it a C Corp?  S Corp? LLC?

• Is the business in good standing with the state and feds? ​
• Any pending lawsuits? Governmental proceedings?
• ​Survey on land
• Any independent contractors that should have been classified as "employees"
• what is the property zoned?
• Can any of it be sub-divided at a later date and sold off?
• Does the owner really own it? Do they have the legal authority to sell?
• Any workman comp claims? Unemployment claims? -any patents or copyrights of logos?
• Any business license and are the transferrable?
• Any tax registration certificates? Are they transferrable?
• Is the business in compliance with zoning laws?
• Any toxic waste or environmental problems
• Do they own photos, testimonials that may be used in print collaterals or the website?
• Any employee contracts with non-competes?

​Matching Ideas with Resources:
We have referrals available for Attorneys specializing in buying businesses.

​ASSETS

• What assets are you buying?
• Any intellectual property? (trademarks, trade secrets)
• Any inventory or goods obsolete? What is their value?

​FINANCIAL QUESTIONS

• Cash Flow Statements
• Balance Sheets
• Accounts Payables And Receivables
• Benefit Contracts
• Insurance/Pension/401 K
• Outstanding Debts
• Debt Review
• Ucc-A Forms - To Find Out Who Extended Credit To The Company -What Secured Assets Were Tied Up In Previous Loans
• Do They Have Healthy Margins?
• How Do Their Customers Pay For Their Products?
• Are Their Expenses In Line With Their Revenues?
• Where Will Your Down Payment Come From?
• What Sources Of Financing Do You Have? (Friends, Family,)
• What Sources Of Funding Do You Have (Self-Directed Funds From Retirement Accounts, Stocks, Home Equity)?
• Is The Seller Open To Seller Financing?
• Is The Seller Open To "Run To Own”?
• Can You Furnish A Statement Of Personal Net Worth And Resume?
• What are the terms of renting the building/land if you are not buying?

GLM has it's Mission and Vision Statement on it's website. It is something a few prospects that have being clients mentioned they liked reading before meeting with us. Although you can read it on our About Page, I would like to show it here as well and remind you to work on this for your company. If you need help in this area, contact us for assistance.

Mission Statement
"GLM, Inc. is an accounting and consulting firm offering a broad range of services to meet the needs of our clients by fostering an environment that encourages personal and professional growth and a commitment to the firm’s core values. We will continue to be known in the community for delivering timely, quality, professional services through a multi-disciplinary approach.”
 
Vision Statement
“Our vision is that GLM, Inc. will be recognized as the professional service organization that accomplished the ultimate balance between outstanding client service, a focus on family and the success of the firm. This will be accomplished by creating a culture of pride and passion that will enable us to continue attracting, training and retaining quality people, who will be rewarded, recognized and respected for their contributions to a firm that is founded on shared core values.”
 
Core Values
 
Integrity- Requires that we possess and steadfastly adhere to high moral principles and professional standards.
 
Excellence- Requires us to provide clients (both external and internal) with exceptional service and experience.  This means that our work product is of outstanding quality, meets delivery promises and provides value to our clients. 
 
Career Development/Continuous Improvement - Our professionals dedicate themselves to constantly improving client experiences.  As individuals we continuously learn new skills and improve existing skills and competencies.  As accounting, tax and consulting professionals we are committed and dedicated to our clients, the firm, and ourselves.
 
Work/Life Balance – We respect various work/life requirements of our people and strive to be sensitive and flexible to each individual case.  We work with our full time and part time employees to create a win-win arrangement for them and the firm.  We work to live rather than live to work.
 
Client Service – We are committed to providing timely, reliable responses and to nurture the relationship with our clients.  Our goal is to define, measure, understand, manage and improve client expectations and be able to align them with firm core values, goals and regulatory compliance.