To help Wright reach the goal of what he calls the "reculturalization" of the firm, he's not relying solely on himself or his managers. Instead, he hired a coach.
Coaches are a new breed of consultant who help their clients set and reach goals by encouraging behavior and attitude changes. "The coach shines the flashlight in the dark corners and says 'Let's talk about what you're not talking about,'" says Anne Neal, the Winter Park-based coach who works with Wright.
Business coaches, unlike traditional consultants, typically don't get involved in the nitty gritty of a company's problems. Instead, coaches act as sounding boards for owners or managers, helping them identify opportunities and overcome obstacles. "When you hire a coach, you hire an outside partner for your business," says Joan T. Cook, a Winter Springs coach who has an MBA.
Here's how coaching works: After an initial meeting to determine goals, the coach and client set up prescheduled sessions, generally weekly telephone calls three times a month for 30 minutes to an hour. To get ready for the call, coaches often ask clients to prepare an action list - noting what they did, what they didn't do, opportunities and challenges of the past week, and what they hope to accomplish in the coming week. In addition to the regular calls, coaches often let clients contact them by fax, e-mail or quick five or 10-minute telephone calls when an unexpected problem arises. The cost is $150 to $500 a month for individual coaching.
In Wright's case, coaching extended to his entire work force. After Wright worked with Neal on a vision statement for about six weeks, employees participated in two one-day workgroups and several monthly teleconference calls to produce a mission statement and action plans. Wright also offered employees a one-on-one confidential coaching session with Neal. Wright is pleased with the results so far and plans to draw on Neal's coaching on a quarterly basis in the future. "I had a vision I felt strongly about," says Wright, adding, "The vision doesn't happen if the people don't rally round it."
RESOURCES
How To Find a Coach
Picking a coach is like picking a friend: There has to be a strong personal rapport for the relationship to work. "You have to have a certain level of trust in the coach," says John Holt, a Fort Walton Beach independent marketer who works with coach Lynn Christen.
In addition to compatibility, it's important to look for someone with experience in topics of interest to you, such as starting a business, increasing profitability or communicating more effectively. Keep in mind that not every coach is a business coach. Some seem more like therapists, describing themselves as "spiritual" and "holistic," with a focus on relationships and lifestyles.
To locate a coach, begin by checking with the following organizations:
Coach University, Steamboat Springs, Colo. (www.coachu.com), is a virtual university for coaches. It has an online coach referral service that can be searched by geographic area, expertise or personal attributes. Referrals are available by e-mail (moreinfo@coachu.com) or telephone (1-800-482-6224).
International Coach Federation, Angel Fire, N.M. (www.coachfederation.org), is a non-profit membership organization that offers a "find a coach" service on the Web.
Professional & Personal Coaches Association, San Francisco (www.ppca.com), is a non-profit membership organization that provides a coach referral list by e-mail (ppca@aol.com), telephone (415/522-8789) or mail (P.O. Box 2838, San Francisco, CA 94126).
The Coaches Training Institute, San Rafael, Calif. (www.thecoaches.com), offers a coach referral service by telephone (1-800-691-6008) and is putting a "find a coach" service on its Web site.
MANAGEMENT
A Taxing Venture
Like them or not, taxes are a fact of life for Florida businesses. For a new enterprise setting up shop, it's particularly important to consider tax implications. How a business structures its ownership will determine how federal and Florida taxes are paid, who's liable and, in part, what forms to file. Most businesses organize as either a sole proprietorship, a partnership or a corporation.
Sole Proprietorship. They are easy to set up and easy to disband. A big drawback of sole proprietorships, however, is the owner's personal liability, which in Florida is limited by the state's homestead rights that prevent creditors from seizing an owner's home. Profits are taxed at the owner's individual federal tax rate, with the amount reported on Schedule C or Schedule CZ. Sole proprietorships do not file Florida corporate income tax returns.
Partnership. This type of ownership structure allows two or more people to share liability and provide capital. Business income is reported on the partners' individual federal tax returns.
Corporation. This is a separate legal entity that must be incorporated with the Florida Department of State, Division of Corporations. The two types are the traditional "C" corporation and the more restrictive "S" corporation. With a traditional C corporation, the company, rather than the individual owners, assumes liabilities and pays taxes, using federal form 1120 or 1120A. The C corporation is also subject to Florida's 5.5% corporate income tax, payable on form F-1120 or short form F-1120A if the business shows net income of $45,000 or less and conducts all business in Florida.
An S corporation can have a maximum of 35 shareholders and does not generally pay federal taxes on income. Instead, owners share the corporation's income and report it on their individual income tax returns. Although an S corporation generally is not liable for federal income tax, it must file a federal 1120S form annually and pay tax on certain investment income and capital gains. In Florida, an S corporation files an F-1120 corporate income tax return the first year it does business in the state, but unless there is federal taxable income, it answers only the form's information questions. There is no state filing requirement for subsequent years as long as the S corporation is not subject to federal tax. o
TIPS
A Tax Checklist
When starting a business, it's often hard to know which tax forms and payments are necessary. Here is a brief list of some of the most common tax-related requirements beyond the basic Florida and federal corporate income taxes (see, "A Taxing Venture").
Federal Employer Identification Number - All businesses, with the exception of sole proprietorships, must register with the federal government. Submit form SS-4 to the Internal Revenue Service.
Florida Sales and Use Tax - Florida businesses must collect sales tax for many products and services. To determine what's taxable and what's not, check with the Florida Department of Revenue (DOR). (See also, "What is Not Taxed," FT, March 1998, p. 102.) If your business will involve taxable transactions, you must register as a sales and use tax dealer (form DR-1) before conducting business in Florida. Businesses collect the tax at the time of the sale and, in most cases, remit payment each month (form DR-15). Small businesses that pay $1,000 or less per year may file quarterly; less than $500, file semi-annually; less than $100, file annually.
Florida Discretionary Surtax - Many Florida counties impose an additional tax on all transactions that are subject to the state sales and use tax. Businesses remit the surtax to DOR on form DR-15 along with the sales and use tax.
Florida Intangible Personal Property Tax - Florida corporations and individuals who manage, own or control intangible personal property (such as accounts receivable, stocks, notes, bonds and leases) must file an annual Intangible Personal Property Tax Return (form DR 601C for corporations, DR601I for individuals). Returns must be filed by June 30, with discounts available to those filing earlier in the year.
For more information about Florida taxes, contact the Florida Department of Revenue by telephone (1-800-352-3671), mail (Taxpayer Services, 1379 Blountstown Highway, Tallahassee, 32304) or Internet (http://sun6.dms.state.fl.us/dor/).
For federal tax information, contact the U.S. Internal Revenue Service by telephone (1-800-829-3676), mail (Atlanta, GA 39901) or Internet (http://www.irs.ustreas.gov).
COMPANY PROFILE
Slick Wires
Tallahassee's Eurus Technologies is developing superconductivity products that could transform the $1 trillion electric utility industry.
Building a business on cutting-edge technology isn't easy. First, there's the matter of finding a commercial application for basic scientific research. Next, there must be investors to help finance the manufacturing and marketing of the new product. Then, customers must be identified and approached. And finally, there's the issue of whether the money will last until the technology catches on. To say nothing of competition.
Tallahassee-based Eurus Technologies Inc. is dealing with all those headaches as it seeks to market a technology that it says could revolutionize the $1 trillion electric utility industry. Using the research facilities at Tallahassee's National High Magnetic Field Laboratory, Eurus finds commercial applications for superconducting technologies that can be used in electric power distribution, medical diagnostics and large scientific magnet systems. Defined simply, superconductivity technology allows electric power to be transferred more efficiently from one place to another. "Eurus is one of the top five makers of superconductor wires," says Lyn Adams, president and CEO, citing competitors such as NKT in Denmark and Showa in Japan.
Eurus was founded in 1995 by Eurus Technologies S.A., a Swiss company that first made high-temperature superconducting material in 1992 in partnership with a former Soviet defense and space institute. Eurus consolidated operations and relocated from East Hampton, N.Y., to Tallahassee in 1997.
The company currently has 25 employees, up from five in March 1997. While Adams declines to give specifics on revenues, she says it will be "several million" in 1998. The company has a close circle of private investors who've financed start-up costs with an eye on future earnings.
Adams, who holds a master's degree in high-energy physics from Rutgers University and is a former AT&T executive, believes that superconductivity will transform the electric power industry the way optical fibers transformed the telecommunications industry, by dramatically increasing the carrying capacity of the transmission line. "Our job is to grab the technology from the laboratory and commercialize these magic tricks, turning it into everyday stuff," Adams says.
Eurus' strategy has been to prove the technology by marketing to users such as the space industry and developers of magnetic resonance imaging (MRI) systems in the healthcare field. Toshiba, for example, uses Eurus cables exclusively for its MRI units because the operating costs are about 80% less than with regular copper wiring. "We're going after the industries where the benefit can be easily calculated," says Adams. "We couldn't wait for the electric industry to be the fast adapter - they didn't need it enough."
Deregulation will force the issue for power companies as they search for cost efficiencies. Says Adams, "If we can save them even one-tenth of their (energy) losses, you're talking about a lot of zeros."
Though it's high tech, Eurus isn't as glamorous as the Internet companies, so don't look for a public offering anytime soon. Still, Adams adds, "We're always on the hunt for investors."
Small Talk
SBA's Move
The Small Business Administration's South Florida District Office has moved to downtown Miami from Coral Gables. The new location, across from the Inter-Continental Hotel, is 100 South Biscayne Blvd., 7th Floor, Miami 33131. The telephone number, 305/536-5521, remains the same.
Labor Links
The Florida Department of Labor and Employment Security's Web site (www.state.fl.us/dles/Services/lftre.htm) includes a wide variety of information for employers on topics ranging from unemployment compensation and the benefits of hiring disabled Floridians to incentives for hiring former welfare recipients and child labor laws. There's also a Web site (www.state.fl.us/dles/Services/niajs) with information on workplace safety, education and training.
Learning at Home
Florida Gulf Coast University's Small Business Development Center is providing information on three popular topics on interactive Windows software, developed in partnership with the Small Business Training Institute. "How to Find the Cash to Grow," "The Legal Essentials for Small Business" and "Patents, Copyrights and Trademarks" are available for $19.95 each or $49.99 for all three plus the applicable sales tax for your county, plus $1.95 for shipping. To order, call 941/947-8085 or 941/948-1812.