What do you want to achieve this year? More new customers per week? Higher average order amounts? Better customer service ratings? No matter what it is you are shooting for, goal setting is one of most important things that you will do in New Year. I’ve got a few tips to help you get there.

1. Keep it Challenging but Realistic.

Any goal that you set for your company should be challenging but don’t over do it. For example, if you had an average order amount of $700 last year, you wouldn’t want to set your goal for this year at $3000 per order. Unless you make drastic changes in how your company runs or what you are selling, that goal is just not realistic. You know best what you may be able to achieve in your particular industry, so be honest with yourself and set your goals accordingly.

2. Write All Your Goals Down.

You may say to yourself on January 1, "I want to get 20 more new customers per week this year." A few months later you will be saying "Did I say I wanted 20 or 30?" Or more realistically, you have forgotten that you even made that goal. If you have all of your goals written down you will be able to not only go back and check them, you will also be able to go down list every few months and check to see how many of them you have completed.

3. Assess Your Current Situation.

To set goals you have to know where you are at right now. In 2003 I wanted to assess our customer service rating so we sent out a survey to all of our customers on which they could rate us in each department of our operation. That helped us establish our base. Now we send survey to every customer after every order. This way we can keep track of how we are doing and if there is ever a hiccup we can fix it quickly. Don’t assume anything. Always assess current situation before setting a new goal.

It's Only Going to Hurt A Little...

Now, in financial goal setting for your business, one invariably comes to question: “How do I decide on a budget when starting a marketing plan?”

No, reason I dread first quarter of new year is that my email box floods with questions about business taxes and IRS, my two least favorite subjects on earth. It’s not that I am opposed to paying my fair share of business taxes. It’s that I consider IRS to be a little like Beetlejuice, movie demon who appeared only after his name was called three times in a row. My fear is if I write too many IRS columns their dark agents may appear on my doorstep, ready to drag me away to an uncertain fate.

Oh well, one must do his duty no matter consequences, so here we go….

Q: I am starting a small retail business. While talking to a potential supplier last week he asked for my EIN number. I had no idea what he was talking about, so I told him I would have to get back with him because I didn’t have number handy. What is an EIN number and why do I need one? -- Robert P.

A: Robert, do you remember old Johnny Rivers song “Secret Agent Man?” There was a line that said, “They’re giving you a number and taking away your name.” An EIN isn’t as cool as a secret agent number, but it works much same way when it comes to your business’ relationship with IRS. Instead of identifying your business by name, IRS identifies your business by EIN.

EIN stands for Employer Identification Number and is also known as a federal tax ID number. The EIN is a nine-digit number that IRS assigns to businesses and is used to identify taxpayers that are required to file various business tax returns.

Does your business need an EIN? According to IRS answer is yes if:

· Your business has employees

· Your business is a corporation or partnership

· You file returns for Employment, Excise, or Alcohol, Tobacco and Firearms tax

· You withhold taxes on income (other than wages) paid to a non-resident alien.

· Your business has a Keogh plan

· Your business involves trust, estate, real estate mortgage investment conduits, non-profit, farmers’ cooperatives, or plan administrators.