Supply Savvy Distribution News by ADS SolutionsSupply Savvy

Specialized News for Distributors

February 2012


Poised for Growth?
New Year, New Practices
Strengths of Family Business
Healthcare Tax Credits for Small Businesses
Quick Peek
You Can Say That Again
About ADS Solutions




Quick Peek


IRS Grants Significant Health Care Tax Credit for Small Businesses



You Can Say That Again

"Time is free, but it's priceless. You can't own it, but you can use it. You can't keep it, but you can spend it. Once you've lost it you can never get it back."

-Harvey MacKay, U.S. businessman and motivational speaker





Is Your Company Poised for Growth?

2012 opened with encouragement and cautious optimism. In the last three months, several major indicators of economic health in the United States showed steady, noticeable improvement: manufacturing, sentiment, holiday sales, housing, e-commerce, inflation, and employment. Although growth is less dramatic than it was a decade ago, for the first time in a long while, it is real. There is no better time than the present to re-evaluate your existing business processes and invest in technology.

... Read more in this Dun & Bradstreet article.

New Year, New Practices

Clean up for the New YearWhen is it time to change the "the way it's always been done"? Take the time to review important aspects of your business with an eye to the future. Are all aspects of your supply chain optimal? Which vendors are providing goods at the best prices with the best on-time fulfillment? Look to your enterprise business software to offer answers to these questions. Take the time to request bids on your best selling products and negotiate terms or prices that reflect your current buying volume and history with your vendors. 

Evaluate your product lines to be sure you're not stocking items that sit on the shelves rather than fly out the doors. Look at trends throughout the previous years and optimize your purchasing strategies to eliminate shelf fillers.

Can you list your top fifteen customers in terms of sales? Assume these customers are using the new year as an impetus to reevaluate their relationships. Beat them to it. Make sure your sales staff checks in with each of their top fifteen customers. Each salesperson should be able to explain what makes your company a good partner and demonstrate their knowledge and understanding of these businesses.

Quick reports can provide the information that allows your sales staff to shine in your customers' eyes. In the office, think about the small things that can save money and improve efficiency. How many faxes are you sending and receiving these days? Is it worth the cost of a dedicated fax line and the time wasted at the fax machine? An enterprise software package isn't worth its salt if it doesn't let you batch send statements and invoices by email, fax (via email service), and print copies for mailing (if needed) in one step.

All in all, the beginning of the year is a good time to institute reviews in all departments. Perhaps it's also time to establish monthly tasks that let you evaluate the critical factors that help your business move forward.

Family Businesses Draw on Hidden Strengths

Your own business can draw on some of the factors that strengthen family businesses across the country. One way family-owned companies stay strong is by using the family narrative as a guide. Families benefit from this common theme. Try adopting the generationally dispensed "refugee" or "Depression Era" thinking that hard times are often just around the corner. Don't put the business at risk with unnecessary borrowing or other devaluing practices, and keep a "nest egg" that can sustain the business. 

ADS Solutions at ISSA 2011History and tradition can provide a stimulus for moving forward. Armed with the knowledge that previous generations triumphed in similar situations, today's executives can vow to do just as well. Some of these 'older' ideas might actually serve you well today!  

Family businesses can rely on the extended family as staff to save money during difficult times. The lesson other businesses can learn is that creative staffing with part time employees, soon-to-retire employees, interns, and others, provide numerous opportunities. 

We all know parents and children and siblings can have trouble communicating, especially when other issues are compounded by business stresses. Family counseling is common nowadays. Even non-related staffers might benefit from "company counseling" when personality or decision-making styles cause strife. Rather than losing important contributors, take the time to work through problems to strengthen the company.


Healthcare Tax Credits for Small Businesses

Dollars and CentsBetween 2010 and 2013, small businesses can earn substantial healthcare tax credits. The smaller your business and lower your average wages, the more your tax credit will be. You may even be able to carry the credit back or forward to other tax years. To be eligible, you must cover at least 50 percent of the cost of single (not family) health care coverage for each of your employees. You must also have fewer than 25 full-time equivalent employees, and the average wage for each employee must be less than $50,000 a year.

If you pay $75,000 a year toward your workers' health care premiums, and if you qualify for a 15 percent credit, you save $11,250. That's a total savings of $33,750 from tax years 2010 through 2013. This is not small change!

Use form 8941 to claim the credit. For more information, just visit the IRS website

About ADS Solutions

Bringing New Technology to Distribution

Since 1984, ADS Solutions - Advantage Distribution Software - has focused solely on designing software that meets the needs of the distribution sector. Because of this dedication, ADS Solutions Advantage software offers a marked contrast to generic small business packages.

Every day we're including more features requested by customers to streamline their business processes. To see how your business can benefit, contact ADS Solutions at 800-423-8268, x. 835. We're here to help.

Supply Savvy is published by ADS Solutions Corporation. Contact Greg Tognoli with questions or for more information about ADS Solutions products and services.

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