Cleveland CPA

According to this article at Cleveland.com, “The cases involve major violations at eight properties and less significant ones at five others. The earliest complaints date to January 2008. The judge calculated the fines from the number of violations, the number of days they continued, and the maximum daily fine amount, $1,000 to $5,000.”

Contact the Real Estate and Construction Group at Skoda Minotti, a CPA, business and financial advisory firm with offices in Cleveland and Akron, at 440-449-6800. 

The First Time Homebuyer credit has been extended, but not everyone is eligible to continue to take advantage of this credit. Only buyers who were under contract prior to the previous deadline of April 30 can take advantage of this extension to close by September 30 and receive the $8,000 credit.

One of the main reasons for the extension is that there are a high volume of short sales under contract but not scheduled to close by June 30^th. This is mainly due to short sales requiring seller side bank approval. As many banks are inundated with these requests, this backup could have caused buyers to miss out on the credit without the extension to September 30th.

For more information, see this article on examiner.com.  

Have questions about the First Time Homebuyer credit? Contact the Real Estate and Construction Group at Skoda Minotti, a CPA, business and financial advisory firm with offices in Cleveland and Akron, at 440-449-6800.

Click here to view Part 1 of our series and learn more about the stock option landscape or Part 2 to learn more about the accounting and tax ramifications of issuing stock options.

What To Do?

As discussed above, there are significant risks that a company brings upon itself if it decides to issue stock options without properly valuing the options and the equity of the company. Rather than issuing stock options, if a company wants to offer an employee the opportunity to obtain an ownership interest, the most efficient and “clean” method may be to allow the employee to purchase shares from the company or from existing owners. There is no valuation requirement in this case (unless a party wants to hire an expert to ensure that they the transaction price is fair and reasonable) which also eliminates the out-of-pocket cost for the employer. In fact, a business actually recognizes a cash inflow when an employee purchases shares directly from the company. 

I am a valuation expert and I directly benefit from work associated with the valuation of stock options, so why am I telling you to consider alternative routes of compensation? Too often, the companies that issue stock options without having them professionally valued are the same companies that will fight against having their options valued at all due to the cost associated with the valuation. I simply want to spread awareness that there are other avenues of compensating employees and giving them opportunities for equity ownership that may be more cost efficient for companies that are under the illusion that issuing stock options does not require a cash outlay.

If you take anything away from this article, remember that issuing stock options is not a “cashless” expense. Consider that there are other alternatives for compensating employees other than using stock options. Remember that there are transaction costs associated with issuing stock options, specifically, hiring a valuation expert, that will create real out-of-pocket cost for any company. Unless you are ready to comply with the valuation requirements associated with issuing stock options, you may be better off simply not using them and compensating employees in another manner. Finally, just like selling a home, if you are going to issue stock options make sure that you bring in an expert to ensure that the value of the company and options are determined and documented appropriately – and be prepared to pay the “commission” for these services.

The information in this article is not meant to represent legal or tax advice. Please consult with a Skoda Minotti business valuation professional or your tax/legal advisor regarding the applicability of these issues to your particular situation.

Visit our web site for more information on our business valuation services. Skoda Minotti is a CPA, business and financial advisory firm with offices in Cleveland and Akron.

Accounting and Tax Ramifications of Issuing Stock Options

 Click here to view Part 1 of our series and learn more about the stock option landscape.

To give you more perspective, first let us review the accounting treatment for the issuance of stock options (rest easy - this will not be too painful). When stock options are issued, an expense must be recorded based on the value of the option. A stock option’s value is derived from a variety of factors, two of which are the value of the stock as of the date of the option grant and the exercise price of the option (the price at which the option holder can purchase a share of stock). Determining the value of a company’s stock is not difficult when it is publicly traded, but privately-held companies do not have readily available market prices, which necessitates the services of a valuation expert. Unless the option is properly valued, a company cannot correctly record the associated compensation expense. If a company is unable to correctly record the results of its operations, it may find obtaining a clean audit opinion to be a difficult, if not impossible, task.

Now that I have warned you about the headaches that you may encounter on the “accounting” side of issuing stock options, let me further alarm you with the tax ramifications. If a company sets the stock option exercise price lower than the fair market value of its stock on the grant date, the stock option could be deemed to be deferred compensation according to Internal Revenue Code 409A. Under 409A, such deferred compensation would be immediately taxable to the employees receiving the grant and subject to regular income tax rates plus 1%. Perhaps even more distressing, a 20% penalty plus interest would also be triggered. In addition, employers would be responsible for withholding income taxes for employees on these types of option grants, which if not done, could result in additional tax penalties. The immediate taxability, penalty and withholding requirements do not apply when the stock option exercise price is equal to or greater than the fair market value of the company’s stock on the grant date. It is impossible to compare the exercise price of a stock option to the fair market value of a company’s stock unless a valuation of the company’s stock has been performed. In addition, when a valuation has been performed to establish the fair market value of a company’s stock, the burden of proof shifts to the IRS to disprove the appraised value. Therefore, unless there is documentation to support the fair market value of a company’s stock near the option grant date, there could be significant tax issues in addition to the accounting issues alluded to earlier.

The information in this article is not meant to represent legal or tax advice. Please consult with a Skoda Minotti business valuation professional or your tax/legal advisor regarding the applicability of these issues to your particular situation.

Visit us tomorrow for Part 3: What to Do?

In the meantime, visit our web site for more information on our business valuation services. Skoda Minotti is a CPA, business and financial advisory firm with offices in Cleveland and Akron.
 

When selling your home, it is common to use an agent to list, promote and show the property. In exchange, you pay a portion of the sales price as a commission to the agent. The benefits of using an agent include: 1) the listing of your home in a database so that homebuyers can access information about it; 2) the agent acting as your middleman during the negotiation process; and 3) the incentive it gives the agent to sell your home quickly (so that her or she can earn their commission). 

Some people choose to sell their home by owner and forego using an agent. These are typically the homes that have “For Sale” signs in their yards for many months, sometimes even years (you know the ones), before they are actually sold. These people often believe that the benefit of not having to pay an agent commission on the sale of their home is worth the prolonged period it will likely take to sell the property. 

What does the choice of hiring a real estate agent or selling your home by owner have in common with private companies issuing stock options? The strange answer is: Much more than many of us realize. 

The Stock Option Landscape

More and more private companies are issuing stock options as part of their key employees’ compensation plans. This may be driven by the ideas that: 1) stock options don’t “cost” anything to the company; 2) stock options will positively influence employees’ performance; or 3) since public companies issue stock options, it must be a good idea and private companies should follow suit. Regardless of the motivation, what most private company owners and executives do not realize is that accounting for stock options, for both tax and financial reporting purposes, may actually have an out-of pocket cost that is greater than the value of the options themselves.

In order to value stock options issued by private companies, there are two major steps that must be undertaken:

1. Determining the value of the company’s equity (which is a key input to valuing a stock option)

2. Determining the value of the stock option

There are not many privately-held companies with the in-house resources or expertise necessary to perform either of the requirements above, both of which are essential in accounting for the issuance of stock options. This often puts accountants in the awkward position of trying to explain to business owners the “unseen” costs and accounting ramifications associated with issuing stock options.

Back to our analogy, hiring a valuation expert to determine the value of stock options is much like hiring a real estate agent to sell your home. A valuation expert is able to perform both of the tasks identified above that are necessary to value the stock options issued by a private company, much like a real estate agent takes care of the necessary steps to sell your home. This work is not free, however, and depending on the complexity of the company and the options issued, the cost to value a private company’s stock options can range in cost from thousands to tens of thousands of dollars. When private companies issue stock options, they often do not consider the “commission” that they will have to pay to a valuation expert to ensure that the options are properly valued. Unlike real estate agent commissions, however, which are based on the sale price of the home, valuation fees are relatively fixed. 

Just like selling a home “by owner,” some companies will issue stock options and try to determine the value themselves (or even worse, not value them at all). By not using a real estate agent, homeowners often find themselves making no headway in the sale of their home. Similarly, by not hiring a valuation expert to value the stock options that they have issued, private companies create the risk that their auditors will not sign off on their financial statements. Maybe even more importantly for business owners and employees, unsubstantiated option values leave both companies and their employees in danger of stiff tax consequences.

The information in this article is not meant to represent legal or tax advice. Please consult with a Skoda Minotti business valuation professional or your tax/legal advisor regarding the applicability of these issues to your particular situation.

Visit us tomorrow for Part 2: The Accounting and Tax Ramification of Issuing Stock Options

In the meantime, visit our web site for more information on our business valuation services. Skoda Minotti is a CPA, business and financial advisory firm with offices in Cleveland and Akron.

SFAS 157 – A Not-for-Profit Perspective
By Dick Larkin

Nonprofit organizations use fair value accounting when they are:
(1) required by certain accounting standards to use fair value for certain transactions and balances, and
(2) permitted by certain other accounting standards to use fair value for certain other transactions and balances.

Click here for more of this story.

Endowment Funds and FSP 117-1
By Dick Larkin

A question has come up as to just what constitutes an endowment fund for purposes of application of Financial Accounting Standards Board (FASB) Staff Position (FSP) 117-1, Endowments of Not-for-Profit Organizations: Net Asset Classification of Funds Subject to an Enacted Version of the Uniform Prudent Management of Institutional Funds Act (UPMIFA) and Enhanced Disclosures for All Endowment Funds, (now part of ASC 958-205). For example,must a perpetual, irrevocable third-party trust be included with endowments?

Click here for more of this story.

Budgeting in the Current Economic Environment
By Lee Klumpp

In the not-for-profit world it is often the case that the budget is not issued on time, nor is the first issuance typically the last. Instead there are a multitude of last minute changes that force the budget process to continue into the next year. As a result the budget may not be usable on a comparison basis as an effective management tool until several months into the next year.

Click here for more of this story.

GAAP Codification

The Financial Accounting Standards Board (FASB) has issued its "Accounting Standards Codification" (ASC) which includes all Statements on Financial Accounting Standards and Interpretations (SFAS’s and FIN’s), Emerging Issues Task Force (EITF) consensuses, Accounting Principles Board (APB) opinions, American Institute of Certified Public Accountants (AICPA) Statements of Position (SOP) and AICPA Audit Guides and other literature. The codification was formally issued July 1, 2009 and is effective for all periods ending after September 15, 2009.

Click here for more of this story.

Summary of Recent Accounting Pronouncements and Effective Dates
By Tammy Ricciardella

There have been numerous accounting pronouncements issued and the following is a brief summary of those applicable to nonprofit organizations and their effective dates.

FIN 48, Accounting for Uncertainty in Income Taxes

Effective for fiscal years beginning after December 15, 2008 for a nonpublic entity unless they are a consolidated entity of a public enterprise or have already issued a full set of financial statements in accordance with generally accepted accounting principles that included the disclosure requirements of FIN 48. A nonpublic entity is one that does not have (a) debt or equity securities that are traded in a public market or (b) whose financial statements are filed in accordance with a regulatory authority.

The effective date above reflects the two deferrals of FIN 48 for nonpublic entities addressed by FSP FIN 48-2 and FSP FIN 48-3.

Click here for more of this story.

Schedule of Expenditures of Federal Awards Illustrative Auditee Practice Aids
By Tammy Ricciardella

In response to the federal study on the quality of audits performed under Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations (OMB Circular A-133) the American Institute of Certified Public Accountants’ Governmental Audit Quality Center (GAQC) launched a series of task forces to address the deficiencies noted in the study. One of the task forces established was the SEFA (Schedule of Expenditures of Federal Awards) task force.

Click here for more of this story.

IRS Extends FBAR Filing Deadline for Persons with Signature Authority
By R.Michael Sorrells

With the growing number of investments in offshore funds, the IRS is boosting its scrutiny of accounts established in certain tax havens to identify possible sources of income that are not currently being taxed. As part of its efforts, the IRS is focusing more attention on Form TD 90-22.1, Report of Foreign Bank and Financial Accounts ("FBAR"). The FBAR is required to be filed by US persons (including tax-exempt organizations) having a financial interest in or signature authority over any financial account in a foreign country if the aggregate value of those accounts exceeded $10,000 at any time during the calendar year. The FBAR is due annually on June 30, with no permissible extension. Penalties for failure to file this form are significant: $10,000 per return.

Click here for more of this story.

403(b) News
by Bob Lavenberg

On July 20, 2009 the Department of Labor ("DOL") Employee Benefits Security Administration ("EBSA") issued Field Assistance Bulletin ("FAB") 2009-02 Annual Reporting Requirements for 403(b) Plans which provides some relief with regard to the reporting requirements for 403(b) plans beginning with the 2009 plan year.

Click here for more of this story.

Update on Management and Governance
By Laura Kalick

Although there is no specific Internal Revenue Code section that grants IRS authority to ask management and governance questions on the new Form 990, IRS takes the position that a well-governed organization is more likely to be tax compliant. In fact, the IRS has agent training materials on its website and will produce a post-audit checklist to see if an organization has fewer adjustments to an audit if the organization has used best management and governance practices.

Click here for more of this story.

Each and every year, the Federal government pours billions of dollars into the pool for non-profit organizations and state and local governments.  Attached to these dollars are strict stipulations that these organizations must follow.  To ensure adherence, the Single Audit Act, as amended, requires each reporting entity that spends $500,000 or more in a year to obtain what is known as a “single audit.”  In this type of audit, an opinion is not only expressed on the reporting entity’s financial statements, but also on the financial and compliance aspects of Federal awards.

The auditee has important roles and responsibilities in a single audit.  One of these responsibilities is the preparation of a statement known as the Schedule of Expenditures of Federal Awards (SEFA).  This schedule details, amongst other things, total Federal awards expended by the reporting entity during the year and is required under Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations.  If this schedule is prepared incorrectly or if the schedule is incomplete, there is the potential that a control deficiency exists which will need to be reported.   

To ensure that that the SEFA is prepared correctly and that it represents the complete picture of Federal awards expended, the American Institute of Certified Public Accountants’ Governmental Audit and Quality Center has released illustrative practice aids.  Click here to access these practice aids.

For more information on issues facing the not-for-profit industry, contact Skoda Minotti at 440-449-6800.

What did Picasso’s paintings look like when he was only halfway finished? How did Michelangelo’s “David” look like after the first few chisels? How livable is a house after the frame has been erected, but no interior work has been done?

A valid answer to all of the preceding questions is, “Something different than the final product.” However, for financial experts who provide opinions on economic damages and other litigated matters involving calculated figures, current rules sometimes allow for previous non-submitted, and non-final, drafts of an expert’s report to be considered discoverable evidence. 

The review of draft iterations of an expert report is often considered to be a waste of time (and dollars) as such drafts often do not correctly capture all of the relevant information that was synthesized in the final submitted report. Oftentimes, the tactic of reviewing an expert’s draft reports is an attempt by an opposing attorney to discredit the expert or make the expert’s conduct appear improper in some way. Therefore, some attorneys will request that non-final draft iterations of reports be admitted as evidence and scrutinized, distracting the court from the analysis offered in the financial expert’s final, submitted opinion. 

This is akin to asking Phil Collins to stop all work on a song that he is still feeling his way through, releasing that song, and then asking him to defend its quality to the public and his fans. Not only is this unfair to Phil, but it is unfair to the music-listening public, who expect a polished, quality product that Phil would be willing to stand by. 

In a recent article by Thomas Hilton, MS, CPA/ABV/CFF, ASA, CVA in Financial Valuation and Litigation Expert, a highly-regarded publication in the business valuation and litigation support field, Mr. Hilton discussed that relief for this problem may be on the way. The Committee on Rules of Practice of the Judicial Conference of the United States (Committee) recently proposed amendments to the Federal Rules of Civil Procedure that would shield draft expert reports from discovery. If the proposal makes its way through the necessary channels without any holdups, this relief could come as soon as December 1, 2010. 

As part of the community of financial experts, we hope that relief from the proposals highlighted above (which have been backed by the AICPA) comes swiftly. Primarily, we believe that these proposals will force courts to focus on the merits of an expert’s submitted opinions rather than the potentially unfinished and in-process analysis that is present in draft reports.

Need assistance with a litigation matter? Contact our Litigation Advisory Services Group at 440-449-6800.

Topics: Litigation Advisory Services, Cleveland Business Advisors, Akron Business Advisors, Akron Business Consultants

Unfortunately, the downturn in the economy has effected many not-for-profit organizations that provide invaluable services to numerous communities and individuals.  For some of these organizations, management has thrown its hands in the air, determined that they just cannot provide these services anymore, and closed their doors.

A recent survey of about 100 not-for-profit organizations indicated that about 90% of those organizations have been directly affected by the downturn in the economy, some even severely.  Another survey indicated that, of approximately 1,000 not-for-profit organizations, only 16% expect to cover operating costs in 2009 and 2010.

Public funding is down, endowments are down and earned income is likely down.  There are a few steps that organizations can take to try and stop the bleeding, or at least slow it down:
 

• Take a closer look at how you are operating internally and how you are administering your programs.  Do the programs align with your mission?  Can you change the way you administer programs, achieving the same results but in a less costly manner?
• Make your mission known.  Let others know how important your services are, and how you are providing benefit to the community and individuals.  Be vocal.
• Take advantage of the situation to eliminate inefficient programs and expenses.  
• Work with existing funders to try and overcome the roadblocks.
• Take the time to analyze the situation, and develop a realistic plan to deal with the situation at hand.

We have seen first-hand how the downturn in the economy has effected not-for-profit organizations.  These are just a few steps you can implement to help your organization survive, and continue to provide the invaluable services that it does.  

For more information on the issues facing the not-for-profit industry, contact Skoda Minotti at 440-449-6800 or visit us online.

Topics covered: Cleveland Accounting Services, Akron Accounting Services, nonprofit organizations

A business valuation is a just a business valuation – isn’t it? This would be akin to saying that a steak is just a steak when, in fact, there are ribeyes, strips, sirloins, and filets (just to name a few). Likewise, business valuations come in two distinct “flavors” – conclusions of value and calculations of value.

As of January 1, 2008, valuation analysts who hold either the Certified Valuation Analyst (CVA) credential supported by the National Association of Certified Valuation Analysts or the Accredited in Business Valuation (ABV) credential supported by the American Institute of Certified Public Accountants have been required to follow new standards that clearly delineate between two types of valuation engagements. Similar to the differing levels of service traditionally offered by accounting firms in performing audits, reviews, or compilations, business valuation engagements are now separated into two defined service categories:

Conclusion of Value

-          All three valuation methods (asset-based, income-based, and market-based) are required to be considered

-          Detailed development and reporting requirements must be adhered to by the valuation analyst, making the engagement more time consuming than a calculation of value

-          This is the required type of report for estate and gift tax filings; Also typically required for instances in which the valuation analyst will need to defend his or her findings and report (i.e. in litigation)

-          The valuation analyst opines on the value of the business or business ownership interest

Calculation of Value

-          The valuation methods to be used in determining value are discussed and agreed upon beforehand between the client and the valuation analyst

-          Reduced development and reporting requirements compared to conclusion of value engagement

-          Ideal for planning purposes (e.g. strategic planning, transaction (purchase or sale) planning, or litigation or divorce proceedings in the settlement stage)

-          Valuation analyst does not opine of the value of the business or business interest, rather, the valuation analyst applies the valuation methodologies agreed upon with the client

-          Generally not defensible in litigation settings because the valuation analyst is not offering an opinion of value, rather, the analyst “calculates” a value based on methods agreed upon with the client

-          Typically costs less than a conclusion of value

-          Has been found to be useful in divorce situations in which a spouse will obtain a calculation of value to aid in the settlement process; If a settlement is not reached, the engagement can then escalate to a conclusion of value so that the valuation analyst can opine on a value and defend it in court, if needed

As you can tell from the discussion above, all “valuation” work is not created equal. For business owners, as well as their attorneys and other advisors, it is important to be aware of the varying levels of valuation service offered so that the appropriate type of report is obtained. You should discuss the purpose of the valuation with the valuation expert in detail as the engagement is forming so that the level of service can be tailored to your specific needs. 

The last thing that you want to do when having a valuation performed is pay too much to obtain a conclusion of value that will only be used for planning purposes or pay too little to obtain calculation of value that will not hold up in litigation or under IRS scrutiny.

Looking for business valuation assistance in Cleveland or Akron? Contact our Business Valuation Group at 440-449-6800 for more information.

Topics: Cleveland Business Valuation, Akron Business Valuation

This week is our final update in our series on the changing rules and regulations and their impact on employee benefit plan audits.

This week’s topic:

2009 Cost of Living Adjustments for Qualified Retirement Plans

The Internal Revenue Service announced cost-of-living adjustments applicable to dollar limitations for pension plans and other items for tax year 2009.

Click here for more of this article.

Looking for assistance with your benefit plan audit? Contact the CPA’s business and financial advisors at Skoda Minotti at 440-449-6800.

The Magis Advisory Group of John Carroll University is offering a seminar providing continuing legal education credits for attorneys, continuing education credits for certified financial planners, and continuing professional education credits for certified public accountants in estate planning, advanced planning for the family owned business and business and asset valuation.

Our own Robert A Ranallo, CPA/ABV, JD, CVA, CFF, will be presenting the "Business and Asset Valuation" session on Friday, June 19th, 2009.

Click here for more seminar imformation or to signup for the seminar.

Looking for business valuation assistance in Cleveland or Akron? Contact our Business Valuation Group at 440-449-6800 for more information.

Topics: Cleveland Business Valuation, Akron Business Valuation

“Corporate Vigilance in Desperate Times” was the title of a presentation I made to a group of corporate controllers on behalf of the Ohio Society of Certified Public Accountants.

It’s hard not to pick up a newspaper these days and see dismal economic results. The next article discusses employee layoffs. “Happy Days Are Here Again” will not be heard on your car radio on the way home. And once home, chances are that you don’t want to look at your stock portfolio or 401k statement that came in the mail. 

Many employees are scared. Financial pressures are fierce. A spouse may have been laid off thus crippling the family cash flow. Retirement, carefully planned for years, may now have to be delayed since the market has halved your nest egg. With foreclosures at record numbers not seen since the Great Depression, many must evaluate whether they can provide a house for one’s family?

In troubling times such as this severe economic downturn, the opportunity is ripe for fraudsters to shake cash from unsuspecting companies. Companies must be more vigilant than ever to protect their financial resources.

Unfortunately, we have become aware of some companies cutting jobs within accounting departments and as a result potentially compromising their internal controls – controls vital to not only good financial reporting, but safeguards in general to the overall corporate assets.

Is there a correlation between a downturn in the economy and an increase in fraudulent acts such as embezzlement? Sure there is. In larger corporations there is intense pressure to “make the numbers” thus resulting in tempting financial statement crimes.

Eliminating staff in an accounting department will usually reduce the effectiveness of established internal controls.   Less effective internal controls is an invitation for embezzlement. And don’t think that the thieving opportunist doesn’t recognize the void suddenly created. 

Selling a business can be one of the most challenging tasks that business owners face. Click here to read “Avoiding Seller’s Remorse,” featuring our own Robert A. Ranallo, CPA/ABV, JD, CVA, CFF.

Need assistance valuing your business? You can contact our team of Certified Valuation Analysts at 440-449-6800.

Skoda Minotti is a CPA, business and financial advisory firm with offices in Cleveland and Akron.

You’ve probably heard the phrase that Facebook “isn’t just for kids anymore.” That’s true. In fact, according to this cnn.com article, the most popular social networking site in the world is more about tracking grandkids. That’s right, the world’s most popular social networking site is currently growing most quickly among women older than 55.

So what does this mean to a business looking at online marketing tactics? It means that no matter which demographic you target, you can find them on Facebook. And, via Facebook’s advertising tool, you can find them much easier than you think.

When placing an ad on Facebook, you can target by gender, age, location, education level, and a host of other valuable demographics. Let’s say you only want to target single males, between the ages of 25-35 (about 5,000 in case you’re interested) in Cleveland, Ohio. You can easily create a custom ad that will appear only to your selected demographic and you will only be charged when a member of your demographic clicks on your ad (about $.60 per click for this demographic). It’s an easy, yet powerful way to know exactly where and to whom your marketing message is being delivered.

With over 200 million users worldwide, your demographic is out there somewhere on Facebook, you just need to find it.

Need help developing an effective online marketing strategy? Contact Skoda Minotti at 440-449-6800 for more information on how we can help.

Skoda Minotti is a CPA, business and financial advisory firm with offices located in Cleveland and Akron.   

Before I get to our first marketing blog entry, I wanted to take a moment to introduce myself. I’m Jonathan Ebenstein and I’ll be your author for the next ten or so paragraphs. I invite you to sit back, relax and open your mind.

If you’ve sifted at all through our Firm’s web site, you’d know that we are a CPA, Business and Financial Advisory firm.  We help our clients, mostly companies, grow their business through a myriad of professional services (i.e., Tax, Accounting & Auditing, IT, Financial Services, Litigation Advisory Services, Financial Staffing, etc.) Notice how well we just seamlessly cross sold our services.  Good stuff.  Keep reading.

What do I do?  Well up until January 31, 2009, I was in charge of the marketing department here at Skoda Minotti.  I’m the guy who with the help of my staff, re-branded the firm, wrote the marketing plan, handled all the public relations, negotiated, purchased and coordinated all the media, designed and wrote all the copy for our sales materials, website, advertising, blogs, e-newsletters, e-blasts and handled all the firm’s internal communications efforts. 

When we were done, as if you can ever be done marketing…BTW you can’t.  We looked around and thought, “Not too shabby. I bet we can help other companies do the same thing.”  And you know what? We can.  And we are going to.

On Feb 1, 2009 Skoda Minotti Marketing Services was launched (cue Chariots of Fire sound track).Wait a minute.  Hold on.  You’re going to launch a marketing service group during this economy?Yep.  And here’s why.

Down economies are actually the best time to ramp up your marketing efforts. It’s true. Recessions actually create unique marketing opportunities for companies that, if leveraged properly, can render your marketing efforts even more successful. Here’s why:

·          Since most people slash their budgets and pull back their marketing efforts during an economic slow down, there’s less “clutter” to compete against.

·          With less marketing messages for your target audience to sift through, the easier it is for them to see your message… and only your message.

·          Supply and demand.  With less demand for space and air time, media outlets will be more willing to make deals, such as decreased rates, increased placements, better placements and even category exclusivity.

·          Strengthen your brand.  Marketing during a down economy tells your customers and prospects that your company is confident in its staying power.

Then, when the economy pendulum swings back up, the companies, hopefully yours, that proactively marketed themselves during the downturn will have put themselves in a position to seize market share, reach new customers, and strengthen brand loyalties while their competitors are busy playing catch-up.

Looking for a Cleveland marketing consultant? Contact Skoda Minotti Marketing Services at 440-449-6800.