GUEST COMMENTARIES BY SMALL BUSINESS HAWAII MEMBERS
If there's a question in anyone's mind as to whether or not the Tax Director is a friend to small business, the November 7th Advertiser's front page (along with Ray Kamikawa's actions) answered it. HE'S NOT. I don't know what's more infuriating - the words that he utters or the delight and glee his picture depicts while quoting the words he utters. At least when Governor Cayetano and Earl Anzai give devastating news, they have the class and decency to look disturbed and somber. For those of you who missed Kamikawa's smiling face and blatant show of power, he once again DECLARED WAR on small business, only this time, he's enlisted the aid of his fellow state workers - namely The Legislature, the Department of Commerce and the Public Utilities Commission (our state's regulators and the departments that license various individuals in assorted professions). THAT'S RIGHT! If he has his way, when state licensed individuals are behind in their GET they will lose their licenses.
While Kamikawa is forgiving the debts of large corporations, he's made it his goal to beat up on the little guy. Instead of getting those licensing agencies and the legislature to weed out the giants who've abused the system again and again by opening up under different names (or any other imaginative scheme they'll get away with) he's chosen to be relentless in his pursuit of a few dollars from us. After all, COLLECTING A SMALL AMOUNT FROM THOUSANDS OF US IS EASIER THAN COLLECTING HUNDREDS OF THOUSANDS OF DOLLARS FROM A FEW OF THEM. If he loses some of us along the way - so be it. Does the word NAPOLEON mean something here?
Here's an example of a $43.71 Kamikawa pursuit.
On October 14th, after my last article of the General Excise Tax (GET), I received a Collection Notice from the tax department for allegedly being late on my June and July returns. They calculated interest thru October 31st. Why did they wait until October for the June return? Why did they pick the 31st when I could have paid it on the 14th? On July 31st and August 31st I personally mailed my checks (from the post office) for the previous months taxes. I have the cancelled checks. How could they say I was late? I decided to take the Notice to the tax office, along with a check for the interest. WHOOPS! Where's the tax office? There's no address listed on the Notice. None on the GET book. None on any tax document in my file. So, WHERE'S THE TAX OFFICE? I called the number stamped on the Notice. Busy...Busy...Busy. After hours of busy I called every small business owner's friend, Sam Slom. He gave me the address along with the State Tax Director's phone and fax numbers. SURPRISE! SURPRISE! The phone was answered and the director wouldn't take my call. I left word. I wrote the director a scathing letter and faxed it not only to him but to my STATE SENATOR, LES IHARA, JR. (who's proven himself to be another really good friend to small business). He suggested that I not pay the interest and allow him to deal with this. Kamikawa had a collection person call me. She stated that my checks had been received on the 5th and 6th of their respective months. "I don't care when you received the checks - When were they postmarked?" "How would I know?" "The law clearly states that the postmark is the determining factor. Where's the envelope?" "We don't save envelopes."
"Excuse Me! HOW CAN YOU CLAIM RETURNS ARE LATE WHEN YOU HAVE NO IDEA WHEN THEY WERE POSTMARKED?" (I hope you're all taking notes) They "forgave" the late charges. (They love using words like, "forgive," "excuse" and "pardon" - even when they're wrong, they pardon us.) Kamikawa answered some of Sen. Ihara's questions in a memo. The reason that the street address is not listed anywhere (now get this) is because we'll get "confused" as to the proper address for mailing payments vs. their actual office address. Kamikawa seems to believe that anyone dumb enough to go into business in Hawaii could never figure out the difference. As to the envelopes. It'll take additional personnel and twice as much storage space to save postmarked envelopes. He relies on the mailroom personnel to "stamp the postmarked date on each GET return." Swell! We all know that mailroom personnel is failproof and would never forget to turn the dial on the stamp on each return received. They were willing to "forgive" June until they noticed that July was late. That proves that June was late so they charged for both. As for October 31st - they picked it out of thin air. It's as good a date as any. Happy Halloween!
When Kamikawa was reminded that the state should be encouraging commerce and employment instead of terminating it, he replied, "I've heard these arguments before and I'm unimpressed." LETS IMPRESS HIM and his fellow state workers. In his letter to Sen. Ihara he stated that he receives 2.8 Million Returns annually. According to Lowell Kalapa, President, Tax Foundation of Hawaii, that represents approximately 100 MILLION DOLLARS PER MONTH. Now the solution to the despicable treatment we receive is obvious. Instead of begging for leftovers and crumbs, Lets NOT PAY OUR GET FOR ONE MONTH. Do you think missing millions of dollars in a single month might "impress" our tax director? One state worker "gets it." HEATHER in Senator Ihara's office, upon hearing this idea stated, "...I'll lose my job. Where will the money come from that pays me?" EXACTLY! Where will the Tax Director's salary come from? If he loses his job - would you hire him? He might have to become a Small Business Owner.
If you're interested in NOT paying GET for one month . . . CALL ME. If you're a Banker who supports Small business and is willing to hold our GET in escrow for a month . . . CALL ME. If you have a tax collection Horror Story of your own . . . CALL ME. Call me at 942-2626 or 943-8086.
Times are difficult for people trying to earn a profit and survive in business. If you can't afford to spend money to promote your business, then you're missing a great opportunity to make your business stand out from your competitors who are shrinking their advertising and public relations dollars.
Marketing is a mystery to business people who hope to prosper from word of mouth. An "open your doors and customers will come" approach will get you some business, but you'll be waiting for the rush.
Here's some marketing lessons to help your business survive and prosper.
Public Relations
Special events attract customers and get them involved in something special:
* celebrate special events, historic events, and holidays
* celebrate famous people's birthdays
* celebrate ethnic themes, etc.
You can send a press release to announce a special event, sale, new hours, community projects, contests, awards, new products and services, etc. Your press release should explain the 5w's: who, what, when, where, why.
You can be quoted in the newspaper. Give news reporters a local angle on a national news story, inform them about a trend, or something important concerning your products and services. Or write a column or an article for a local newspaper or a business professional group's newsletter or journal.
The more you are quoted, the more you will be considered an expert. This will benefit the image of you and your business.
Re-print any news stories you write and any stories that quote you. Send copies to your customers, and put them on your wall.
Mailings
Communicate with your customers throughout the year with mailing lists that help you:
* gain new customers
* increase your image and visibility with your current customers
Here's how to develop a mailing list:
* xerox your customers' checks
* hold contests
* establish a special club for your business
* collect your customers' business cards
* celebrate customers' birthdays or anniversaries with a gift or discount
* ask your customers if they'd like to be notified of special sales or receive a newsletter
By knowing exactly who your customers are, you reduce wasteful advertising and promotional expenses, and you can target your customers easily and cost-effectively.
Your mailing can be sent to people residing in a geographic area near your business, or to people who have interests similar to the products and services you provide.
A postcard with a brief message is inexpensive to print. Place four on a sheet of card stock and cut them. First class postage is just 20¢.
Share a mailing with a non-competing business. Print your flyers or discount coupons, and stuff them in the same envelope.
Workshops and Speeches
You can teach non-credit workshops at a college or adult high school, conduct seminars for your customers, and give speeches to civic groups. There are more than 2,000 clubs and associations in Hawaii. You will gain increased publicity and credibility for you and your business. People will consider you an expert, and best of all, you will also gain new business.
Newsletters
Newsletters allow you to communicate regularly with your customers. You can announce special sales, profile your company staff or your best customers, or explain how a product/service can help people solve problems. Newsletters help you build a good business-customer relationship.