Tag: Small businesses

Spotlight: Karina Dopp Design

Posted on by Odette Fernandez

Karina, from Karina Dopp Design, is our Spotlight this week. She is a photographer and mom to twin boys.

She tells us her story.

jackson-hole-wedding-photographer

What can you tell us about yourself?

I’m a stay-at-home mom to twin boys, I run a wedding photography business out of Jackson Hole, Wy, and I studied marketing at BYU-Idaho.

What were the origins of your business?

I suffered from severe postpartum depression and anxiety after I had my twins and I felt like I lost all purpose in my life. I loved watching Instagram influencers and entrepreneurs so I decided to go back to school for business marketing. One of the classes had us start a business and I had been dabbling in photography so that was my business for the semester. It went really well, so I kept it going and now I’m paying my bills and educating other photographers!

What aspects of your background have helped you the most?

As weird as it sounds, anxiety motivates me to get my work done and serve my clients. Also, my marketing education has helped tremendously in building a niche in a highly saturated market.

What were the main challenges you encountered at the beginning?

Comparing myself to other people was really hard for me. I thought I had to be what everyone else was. It took a while for me to figure out that Clients love people that stick out in the Industry, so I started serving them more than anyone in my area and giving them way more value.

Who was the most supportive of your idea?

Another photographer in my area messaged me and told me to charge more for my services and I couldn’t believe another photographer would do that. She had way better work than me but she made me feel so good. Without her, I would not be confident in the work I’m doing.

Have there been any changes in your business approach after Covid-19?

I started my business right before the pandemic, and honestly, it’s helped me gain a presence. I was able to take on jobs other photographers didn’t have time for and it was super nice!

What makes your offer unique?

To me, service is way more important than the dollar amount. One of my favorite photographers says “I like to like myself after I work with my clients” so even if something happens that isn’t ideal, I like to serve them rather than push a contract or time limit. They like you better that way.

Do you have any other passions?

Being a mom is really beautiful. Sometimes I get mom guilt when I have to work instead of being home with the twins, but then I remember that their relationship with their dad is just as important as mine with them. Plus, time away from them only makes me want to be around them more!

If you could go back in time, what would you do differently?

I would set boundaries for myself. I got burnt out by doing too much business and I wanted to quit. Having a business at home is hard because it’s not easy to give yourself personal time, but I’m way more productive when I have business hours and personal hours.

What challenges do you see ahead?

Reaching my financial goals always gives me anxiety and I shut myself down when I’m not “successful.” In my mind I know I can be successful, but I always have a fear of not achieving my goals.

What future projects does your business have?

Eventually, I want to retire my husband. I love my job and I want it to be able to relieve financial stress from our family and I want my husband to have the time to chase his dreams.

What message would you send to your followers?

My followers know I’m a big believer in setting and achieving realistic goals. I think if they knew that making a plan for your goals can help you accomplish anything that would be the best.

If you were to define your business in one sentence, how would you do it?

I’m a wedding and elopement photographer in Jackson Hole specializing in documenting authentic moments.

 

Karina Dopp Design’s Contact Info

@karinadoppdesigns
www.karinadoppdesigns.com
photosbykdopp@gmail.com

_______________________________________
Utility Avenue’s Spotlight focuses on promoting inspiring businesses every week. For a chance to be interviewed, contact us at support@utilityavenue.com with the subject Spotlight.

Healthy Home, Healthy Business by Tammy Longo 

Posted on by Odette Fernandez

Tammy Longo is a Wellness Coach and helps simplify the use of essential oils for women who want a healthier, non-toxic lifestyle. Tammy has developed a 5 step Simple Essentials System to help women get started and not feel overwhelmed by the process.

Today, she shares it with us.

essential oils

As entrepreneurs, many of us are working from home and focussing on growing our businesses. We can make a few simple changes to feel good about our work surroundings.

Do you ever wonder if the products in your home are safe for you and your family? If you use conventional cleaning sprays, room sprays, or candles, most likely, they have toxic ingredients in them. I had these in my home too, until I discovered that there were safer products out there.

Besides the food we eat, there are two primary sources of toxins: cleaning products and personal care products. Did you know that there are many hazardous chemicals in cleaning products that can affect your health? You can breathe the fumes into your lungs, and the chemicals can get absorbed through your skin, especially your hands.

On average, women use 12 personal care products a day with over 150 ingredients in them. That’s a lot of ingredients that I can’t pronounce! Your skin is your largest organ, and the products you use on your skin gets absorbed quickly into your body. All of these toxins can add up and cause a burden to our bodies.

I believe that we all can benefit from removing toxins from our homes. With so much information out there, most people don’t know where to start. It can be overwhelming and complicated until they find out how easy it is to make these changes. I knew that many of the products I was using were potentially harmful for years, but I kept on saying I’ll get to it, I’ll make changes, and they seemed so expensive!

I honestly didn’t know where to begin. Life gets busy, so I put it on my long to-do list with the hope that I would get to it someday. I learned that pure essential oils could also help me live a toxin-free lifestyle because they have therapeutic benefits. I committed to living toxin-free by making simple swaps as I ran out of products. Now I use essential oils every day, and I can’t imagine my life without them.

If you are ready to make some changes in your home so you can focus on the health of your business, here are three tips:

1. Instead of burning candles, diffuse essential oils like peppermint and wild orange to give yourself a pick me up in the afternoon. Or diffuse lavender and wild orange to reduce some stress after a day of working.

2. Switch out your cleaning spray with a simple mix of water, white vinegar, and essential oils like lemon or wild orange.

3. Ditch the room sprays filled with chemicals and make your own with lemon and lime essential oils.

Challenge yourself and try each one over the next few days!

Tammy Longo’s Contact Info

For a complimentary consult, you can email her at wellnesswithtammylongo@gmail.com or visit her website at

www.wellnesswithtammy.com/free-guide for a free guide on ways to live toxin-free with essential oils.

Become a Mobile Dog Groomer with Utility Avenue

Posted on by Odette Fernandez

Recently, we interviewed KVP Custom Orthotics, a company that leads the veterinary marketplace when it comes to custom orthotics.

You have been asking information on how to become a dog groomer.

Here it goes, thanks to KVP Custom Orthotics.

dog groomer

How Can I Be a Mobile Dog Groomer?

One of the best things about running a dog grooming business is that you don’t need to have a physical grooming facility. The mobile dog grooming trend is on the rise, and you can very well be a part of this raging trend.
Mobile grooming also proves highly convenient for the customers as they don’t have to visit your facility. Your mobile dog grooming facility can travel to them as and when needed.
So, how do you become a mobile dog groomer? What are the equipment and accessories, like grooming tables, you’ll need to get started?

Here are a few tips that can help.

 

1. Plan the Business

We’re considering that you already have decent experience working in the dog grooming industry, as industry experience is an absolute must before starting any business. Once you’ve made up your mind, the first step is to plan your business.
The initial planning should include initial funding and ongoing costs, target market, business name, and what you’re going to charge for your services.

2. Managing the Initial Expenses

While the ongoing and maintenance expenses can be low, you’ll need significant initial funding to get started. The most expensive purchase will probably be the vehicle you’ll use as your on-the-go dog grooming salon.
Remember that the vehicle will have to be installed with a host of devices and equipment for making it fully functional. It’ll need a water tank, water heater, power generator, lighting, waste containers, ventilation, sink, and a dryer.

3. Must-Have Equipment, Devices, and Products

Apart from the vehicle and its facilities, you’ll also need to invest in quality equipment and devices. For instance, you’ll need grooming tables, shears, clippers, brushes, combs, shampoos, and conditioners. While several brands sell these products, it is better to go for quality products and equipment.

Pet owners now want the best for their pets, and only quality products will help you deliver your best. Remember that most pet owners do not mind spending a little more on quality services.

Starting a Mobile Dog Grooming Business

Once you’ve figured out the points discussed above, you can then work on your target market and pricing. Remember that marketing is also crucial for landing more clients. Also, ensure that your services are priced competitively, at least when you are just starting.

Last but not least, select a brand for grooming supplies very carefully. You can stick to the same brand for all your future purchases.

And don’t forget to list your services, for FREE, in the Utility Avenue app so you can reach more potential clients.

How My Small Business Saved Me

Posted on by Odette Fernandez

How My Small Business Saved Me

By: Alba Morales

In 2017, I started feeling like I never had. Loneliness, sadness, lots of crying, among other things, were present almost daily. Earlier that same year, I had finally decided to leave my fears behind and open my small business. I researched every little detail and did everything I needed to open my online boutique. That year was supposed to be full of accomplishments.

ideas

Although I tried to make it work, shortly after opening my business, I gave up. Depression and anxiety were preventing me from moving forward. In early 2020, I decided to focus on my business again, and it’s a decision that changed my life. My mental health was way worse than when I first closed my boutique, but I needed something to distract me from my thoughts. Focusing on my business helped me see the light at the end of the tunnel.

Instead of wanting to be in bed and not do anything, I pushed myself to get up and brainstorm ideas. Instead of crying until I ran out of tears, I decided to start working on my website. My boutique was the focus of my time and energy. Although any new business journey is difficult, I was just thankful I could find myself again. The fact that I was motivated made me feel like I had already won this battle.

According to the World Health Organization, more than 264 million people suffer from depression worldwide. Although it is imperative to get professional help, we can find additional ways to cope with our mental health. Focusing on my business helped me keep my mind busy and, ultimately, played a huge role in overcoming my depression. Here are three things I did to help me turn negative thoughts into productivity for my business.

1- Write down daily goals

Small goals are usually more effective because they are easier to achieve. Write down at least one or two things you want to do the next day, no matter how small they are. By doing this consistently, you will accomplish at least 5 to ten goals a week.

2- The Internet is your best friend

There is so much information available online. Take your free time to research everything about your niche, business tips, marketing ideas, social media trends, etc. Then take the time to put into practice what you’ve learned.

3- Be your greatest cheerleader

Although some people or circumstances may discourage you, it is crucial to believe in your business or idea. When you know what you’re capable of, you want to show that to the world. Remember the main goal and keep working hard to get there. Seeing your hard work paying off will keep you motivated.

Alba Morales’ Bio

Alba is the owner of Lady In Pink Boutique, an online boutique that caters to regular and plus-size women. Upon launching her boutique, Alba was featured in Univision and has dressed multiple TV personalities in Puerto Rico, her homeland. Besides working in her boutique, Alba enjoys spending quality time with her son and family, cooking, and live music.

 

Alba Morales’ Contact Info:

IG- @ladyinpinkboutique

FB- @ladyinpinkboutique

21 Entrepreneur Success Stories

Posted on by Odette Fernandez

2020 proved to be a very challenging year.

From natural disasters to a world-stopping pandemic, we suffered from quarantine, loss of loved ones, broken plans…

If we learned anything last year, hope we learned to focus on what really matters.

Days ago, we published a post in a Facebook group, and some entrepreneurs told us about their success stories in 2020.

Today, we share them:

2021

Yuliana Francie
“I wrote my first book.”

Janna Willoughby-Lohr
“I made a huge order of customized paper flower bouquets for them to send to some VERY famous VIP clients! It was amazing. You can see a timelapse video, a bunch of pics and read all about it here: papercraftmiracles.com/blog/twitterflowers ”

Supna Doshi
“We produced our first ever music video with Grammy and Sony artist and Navy Veteran B Taylor. We filmed during COVID 19 with every single branch of the military, every first responder group, and Veterans.” alineaproduction.com

Julie Traxler
“Launched a business, wrote a best-selling book, and started a podcast. All of them focused on helping small businesses. And we led the effort for AJ McLean of the Backstreet Boys to launch a new nail polish line.” sbpace.com  

Bridget Brooks
“Hit 6 figures as a business in one year…. the lesson Stop the limited belief block.”  valton.co

Pooja Doshi 
“I completed my business GST registration, which was due, got featured in A compendium of 100 successful women in MSME sector in India and won an award in the arts category.”

April Ritz
“I scaled my business from a startup in 2019 to an international business with clients in 8 countries in 2020 during a pandemic.” thesavvyassociates.com

CaTyra Polland
“Biggest success story: Starting the Literacy Love Scholarship for high school students.”

Jacquelyn Rodriguez
“I launched a podcast and a subscription box for female entrepreneurs to start co-creating a life they love. I also got my certification to be a Neuro Coach.”

Becca Hector
“I designed, launched, and taught a personal development course for autistic adults like me. It is now a successful, sponsored, grant-approved, international course!” beccalory.com/webinars/

Nicola Redman
“I’ve managed to grow my business so much that we’ve been able to but my parents B&B and laugh a creative retreats biz with my husband. It’s been quite the year!”

Paul Wakefield
“I’ve created 12 more first-time authors, wrote & published my fourth business book, grown my team from 3 to 40, completely rebranded my business, and had the best financial year in 14yrs of being in business. All in all, 2020 has been an incredible year for me.”

Silke Harvey
“I managed to drive from the UK to Bulgaria at the height of the pandemic and, against all the odds and purchased a property which I’m going to convert into a spiritual eco-retreat center next year.”

Abigail Ogoriba
“I launched my NGO- WHOLESOME LIFE INITIATIVE in January 2020. We visited about 7 schools, coaching and inspiring young ones until the pandemic lockdown in march. We transitioned online, organizing classes. I launched two bestselling books in May 2020 And launched my online coaching academy – WHOLESOME LIFE COACHING ACADEMY in September 2020. I launched another handbook for young girls on the first of December 2020. It was a challenging year, but we did not let the challenge stop us from creating value to impact the young minds to position them for a successful future. We have recorded numerous testimonies and still counting.” Wholesome Life with Abigail Ogoriba

Awakened Woman
“Interviewing powerful women who chose to share their amazing stories with AW.
Among them:

  • Maria M. Trusa CEO, Forme Medical Center
  • Lisa Vidal, Actress, Grey’s Anatomy,
  • Shayla Rivera former NASA Rocket Scientist and Comedian, Shayla Rivera
  • Benita Alexander Journalist and Emmy Award-Winning Documentary Writer, Benita Alexander
  • Julissa Prado CEO at Rizos Curls
  • Vanessa Coppes, CEO, EIC, Bella Magazine
  • Lois Robbins, Actress
  • Nikki Boyer Actress, 3-Time Emmy winning Media Personality and Host, Dying for Sex and wonderymedia Daily Smile Podcasts
  • Christina Vidal, Actress, @abcnetwork United We Fall
  • Beth Ferry, NYT Children’s Book Bestseller

I have been blessed to write these stories and look forward to new ones being added to my awakened-woman site in 2021!”

Claire Jones 
“From March to November of this year, we were able to increase revenue by 620%!!!”

Gillian Jones-Williams
“I wrote a book on my story of how I nearly lost my 25-year-old business in March and had to reinvent and am publishing it to raise money for the NHS. So much learning this year!”

Karolina Chic
“Launching #SummerSchoolOfStyle membership site.”

Steph Palermo
“Published my third book, launched a membership community.” JustSteph.com

Jaishri Hall
“Hi! My story this year went from frustration, sadness, anger, and depression to a total shift re-encountering my life’s purpose, finding love and fulfillment.”

Aly Sanger
“This year has been a roller coaster, for sure! In life, we went through many struggles that made it seem like self-employment wasn’t the route to go – lost a loved one, had a pipe burst, revenue went down by over 60%. All by May. It was not shaping up to be a good year. In September, I launched a group coaching program that filled up, and by October, we replaced that lost 60% revenue and more than doubled it! I’d be happy to share with you more about this wild ride that’s been 2020.”

5 Ways to Step Up Your Marketing Strategy in 2021

Posted on by Odette Fernandez

Step up your marketing strategy in 2021.

The pandemic has changed the way businesses operate this year, prompting the world to think of ‘new normal’ ways. With these five ways to step up your marketing strategy in 2021, you can lead your small business to work remotely, attract a wider audience, and generate increased sales.

5 Ways to Step Up Your Marketing Strategy in 2021

Whether it’s to boost sales or ensure customer retention, managing a business in 2021 involves combining pre and post-COVID marketing strategies. By embracing automation, developing useful content, and fortifying your brand, you can make your business stay relevant in the coming year and drive value to your products or services.

BUILD A STRONG BRANDING WEBSITE

The pandemic has pushed 58% of the world’s population to go online to work, study, and connect. Creating an eye-catching logo or a witty business name wouldn’t do the trick alone; you need a website that would enable you to reach a wider audience.

  • Showcase your best creations and beat the competition. For instance, one of the most effective marketing strategies for photographers is to add visuals to their content to prove the quality of work.
  • Use photographs that would show how your business can help individuals or companies navigate through global change.
  • Introduce yourself as a relatable small business owner who can contribute to families and communities. You can also present your team and show working conditions through photos.

EDUCATE WITH YOUR CONTENT

About 77% of internet users read blogs, making blogs the 5th most trustworthy online information source. Creating relevant content positions you as an expert in your industry, allowing your personal branding to subconsciously speak to consumers.

Blog content like how-to guides, listicles, and instructional images build audience trust that you have a solid foundation about your niche or industry.

EMBRACE AUTOMATED MARKETING

About 82% of marketers gained a return on investment due to marketing automation’s cost-effectiveness. Working from home can sometimes blur the line between personal and business hours. When it’s time to rest or bond with your family, mailing list providers like Mailchimp lets you keep up with clients and networks.

DEVELOP PERSONAL AND ONLINE CONNECTIONS

Building a business network is an unending process. Your personal and virtual circles can be your most valuable marketing assets to grow clientele in 2021.

  • Dive into the online world and attend conferences, webinars, or peer groups where you can meet new clients.
  • Collaborate with your local community. These may be family, neighbors, or other businesses in your area.
  • Use social media if you’re working on a tight budget. With the lockdown causing about 3 billion people to use Facebook’s apps, you can gain traffic and response by engaging with your followers and friends list.

Running a business is like taking care of a family — it needs your patience, presence, and attention to nourish it. Likewise, engaging with customers is like parents connecting with their children; it requires participation, authenticity, and personal voice.

COLLABORATE AND INCENTIVIZE

Managing a business isn’t a solo project. You’ll need support in various forms — family, friends, business partners, connections, mentors, and clients. Giving out incentives is one of the best ways to make the collaboration mutually beneficial, with 75% of consumers more likely to purchase again after getting an incentive.

Reward the client’s loyalty or purchase through freebies or discount codes. You can even use your email list for sign-up offers. You can partner with businesses that share your audience and do cross-promotions with them through blog posts, referrals, or exchanging of branding photos.

Lastly, don’t forget to thank everyone; human connection and appreciation can prompt people to remember that you value their contribution to your business.

Final Words

While marketing may seem daunting and overwhelming, planning for it can help seize opportunities, serve customers, and make your brand known. Start with one or two of these tips until you can combine all of them strategically for the coming year. At Utility Avenue, we are committed to help you thrive.

Guest post by Shootproof

This article was published first in Odette Photo+Art

Spotlight: Lesette Jackson

Posted on by Odette Fernandez

Lesette Jackson is in the Spotlight this week.

What can you tell us about yourself?

I am Lesette Jackson (known as Lee).
A wellness practitioner, herbalist, healer, and advisor, I launched Conscious Lee in 2015. I am also a paralegal with a health and human services background, and I have worked in the medical field for over 20 years. I make products such as body soaps, body butters, body oils, sea moss, herbal teas, and crystal infused candles.
My passions are my family, nature, spirituality, and helping you live your best life!

What were the origins of your business?

This journey began after a type 2 diabetes and hypertension diagnosis. My doctor gave me 6 weeks to make changes. I realized I was neglecting myself. Then, I implemented detoxes (green smoothies and herbal regiments only), flushed out my system, started going to the gym, and incorporated sea moss and herbs into my diet. I focused on what I was putting in my body, increased my water intake, and eliminated things that were not good for me.

What aspects of your background have helped you the most?

As women, we need to feel better and take care of ourselves. Mom, wife, and daughter roles are taxing because there is so much responsibility. Women have to use nature to help us. We have so many natural remedies. Westernized medication is not effective. Black women need to take advantage of holistic options. Nature is the remedy to all, not prescriptions. I push accurate and beneficial information. I also provide a healthy alternative for cures and prevention.

What were the main challenges you encountered at the beginning?

Being a Latina-Black woman, financing for women of color (banks, credit unions); businessmen who do not take me seriously; lack of support/backing; pushback from those who don’t see me equal; those who prefer Westernized medication instead of natural remedies.

Who was the most supportive of your idea?

The most supportive was my immediate family, close friends, and repeat customers.

Have there been any changes in your business approach after Covid-19?

Yes, clients are more conscious of health. People are more interested in alternative wellness options. I have seen an increase in customer interest in holistic options.

What makes your offer unique?

I am honest, and I share my personal experience acknowledging my shortcomings and not hiding failures. I build trust with clients because I have used the products and implemented the recommendations I make to my clients.

Do you have any other passions?

I am passionate about spirituality, my family, and respect for life, all forms of life.

If you could go back in time, what would you do differently?

I would not have ruined my credit!

What challenges do you see ahead?

Rebuilding my credit.

What future projects does your business have?

We are planning a podcast, a new line of products, and a spiritual Spa.

What message would you send to your followers?

Whatever you do, do it consciously.

If you were to define your business in one sentence, how would you do it?

Authentically balance: mentally and spiritually.

Contact Info

www.conscious-lee.com
www.twitter.com/myconsciouslee
www.instagram.com/myconsciouslee
https://www.facebook.com/consciousl33

_______________________________________
Utility Avenue’s Spotlight focuses on promoting inspiring businesses every week. For a chance to be interviewed, contact us at support@utilityavenue.com with the subject Spotlight.

Want to save taxes? These moves may cost you college financial aid.

Posted on by Odette Fernandez

Year-end tax planning with a college-bound kid? Common tax moves for your small business that can save you taxes but may cost your chances for financial aid.

As we approach year-end, there’s no shortage of articles on different tax moves one can make. Your CPA or tax professional may have suggested some to lower your tax bill. When you have a kid about to go to college, however, things can get tricky. Your well-intentioned CPA or tax professional may end up costing you aid and raising the cost of college!

*** Please note that this article is not intended as tax advice. Please consult your own tax professional or financial advisor to discuss your specific circumstances. ***

Before we detail the differences between taxes and financial aid, it’s important to understand how your financial information is used in the financial aid process. Families submit their income and asset information typically using the FAFSA, and for some schools, the CSS Profile form. The colleges then use the information on those forms, applying different formulas, to determine how much the family can afford for college each year, known as the Expected Family Contribution, or EFC. In the formulas, income is a far bigger factor than assets.

Using the EFC, colleges then determine whether the family qualifies for need-based aid. This type of aid can be in the form of grants, loans, or even work-study. Because these types of aid are based on a family’s financials, some families think they “make too much money to get aid”.

Let’s go a little deeper. The income information used on the financial aid forms is based on the family’s tax return (parent and student, if filed). On the surface, then, anything you might do to save taxes – lowering income, increasing deductions, etc. – would be a smart move. As a famous announcer on a well-known sports TV channel says, “Not so fast my friend”.

There are 3 key areas where taxes and financial aid differ for self-employed and small business owners.

First, the most common area for reducing taxable income is to contribute to a tax-deferred retirement plan, such as a 401k, 403b, or an IRA. Lower taxable income, save on taxes today, and save for retirement – it seems to be a smart financial move. For financial aid, this person would have just hurt themselves. In the simple example below, a parent increases their retirement plan contribution: 

Before

 After
Income $100 $100
Less: Ret Plan Contrib 10 20
Income after contrib 90 80
Less: Taxes (10%) 9 8
Take-home pay 81 72
Fin Aid: Add back ret plan contribution 10 20
Income for fin aid purposes $91 $92

 

In this simplified example with an assumed tax rate of 10%, increasing the retirement plan contribution results in increasing, not decreasing, the income for financial aid purposes. Higher-income equals higher EFC, which lowers your chances of financial aid.

Retirement plan contributions could be amounts put into a 401k, SEP, SIMPLE, or a personal IRA.

Why would retirement plan contributions be added back? Financial aid income counts as income, regardless of what you do with the money.

This effect is also true for Health Savings Accounts (HSA) and Flexible Savings Accounts (FSA) contributions. On the FAFSA, HSA contributions are added back. On the CSS Profile, both HSA and FSA contributions are added back.

Second, it is common for small business owners and self-employed to reduce the amount of net income (or even showing a small loss) for tax savings purposes through depreciation and other expenses. This may not help.

For colleges using only the FAFSA, which is the majority of colleges and universities, business losses are reported as is. Before you go reducing your income to near zero, there’s a catch. If a non-business owner or self-employed family has an Adjusted Gross Income of $50k or less, they qualify for a simplified EFC calculation. Primarily, this means that the family’s assets are excluded.

For a family that is self-employed or owns a small business that files a Form 1040, Schedule 1, this simplified EFC formula does not apply. A Schedule 1 would reflect self-employment income and income from a small business via Schedule C, business income via Form K-1 on a Schedule E, and rental real estate income on Schedule E.

Third, being a small business owner or self-employed is less friendly for schools using the CSS Profile form. Any business losses are added back as well as depreciation expense. For example, if one parent works a regular W-2 job earning $100k and the other parent is self-employed and reports a tax loss of $100k per year, the tax return would show a zero net income ($100k in income less $100k in loss). For the CSS, that family would have an income of $200k.

The CSS Profile form has other requirements for business owner families, such as reporting the value of the business as well as submitting business tax returns, if filed separately.

In case you’re wondering, the schools that use the CSS Profile form are the Ivy League, near-Ivy League, as well as public Ivy schools, such as the University of Michigan, Univ of Virginia, Univ of North Carolina Chapel Hill, and UMiami.

Bonus item: One other difference between the two forms, though not tax-related, is the reporting of business bank accounts. On the FAFSA, any bank accounts in the name of the business are not reportable. On the CSS, the bank accounts are reportable. Again, the higher the assets, the less aid a family is likely to get.

Despite the differences, there are advantages that business owners and self-employed enjoy when saving and paying for college; I wrote a prior blog post on some strategies.

The bottom line is that while your CPA or tax professional may be well-intentioned and helpful for taxes, they may not help for financial aid and may raise the cost of college. Understanding these differences can help lead to smart decisions balancing tax savings and financial aid.

T. Jack Wang
Financial Wealth Strategist