BUSINESS MANAGEMENT AMERICAN SOD PRODUCERS ASSOCIATION 1855-A HICKS ROAD ROLLING MEADOWS, IL 60008 Dr. James Beard Texas A & M University Dept. of Soils Crop Science College Station, TX 77843 Rush to: FIRST CLASS MAIL U.S. POSTAGE PAID Rolling Meadows, IL 60008 Permit No. 662 FILE [June/July] [1990] Incredible Ottawa... JULY 25-27 ASPA SUMMER CONVENTION UPDATE Discounted registrations available until June 25 ASPA Members and guests who plan to participate in the 1990 ASPA Summer Convention and Field Days have only until June 25 to complete their registration form and obtain discounted rates. For example, the first ASPA member registering from a company can save $50 by registering before the June 25 cut-off date. Similar discounts apply to the other levels of registration. Early indications show a rather large number of new companies who plan to introduce equipment to the sod industry, while many others are going to be unveiling improvements and upgrades to much of their line. In addition to the live-action, field demonstrations, the two-day event will offer displays from a large variety of non—demonstrating exhibitors such as seed, parts and chemical suppliers. The 1990 Convention, hosted by The Manderley Corporation of John Hope, will present the field demonstrations on two mornings, rather than the former single-day format. This will allow everyone more time to view the equipment and still have ample time to enjoy the other ASPA activities and sights of Ottawa and the surrounding area. Additional copies of the convention program and registration forms can be requested by calling ASPA at 708/705-9898. ASAP MEMBERSHIP RENEWAL NOTICES have been sent to all current members. To register for the Convention and receive member rates, dues must be paid for the 1990-91 membership year. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that this publisher is not engaged in rendering legal, accounting or other professional service If legal advice or other expert assistance is required, the services of a competent professional person should be sought. Published bi-monthly for members of the American Sod Producers Association, under the auspices of the ASPA Business Management Committee. We invite your comments and recommendations. NEW MARKETING AND ENVIRONMENT MATERIAL SENT TO ASPA MEMBERS New marketing brochures and environmental benefits pieces were recently sent to all of ASPA's members, along with a revised order form to obtain additional copies. "Self-Scoring Method: How to Establish Your Lawn," and “Contractor Estimator for Turfgrass Sod and Seed Installation," are ASPA's two latest sod marketing tools. Both pieces are designed to better position sod sales against seeding or hydro-seeding competitors. Members also received the latest copy of the "Journal of Environmental Turfgrass," as well as an announcement of the availability of a unique slide set prepared by Dr. James Beard of Texas A&M University on the environemtnal benefits of turfgrass. With the exception of the slide set, sample copies of the three new items and an order form were sent to all members. ASPA's Marketing Committee and the Environmental Benefits Committee were very involved in the development and design of these new ASPA items. By using the expertise represented by the members, ASPA's items are unique to the industry and provide very specific assistance to the membership. Promote Turf's Benefits With Employee PR Plan The "Journal of Environmental Turfgrass" was written and produced not only so it would contain timely and interesting information on this important topic, but also so that it could be widely and easily dis­ tributed to customers, media representatives and professional offices. To increase their opportunities for media exposure, a non—sod company in North Carolina offers a $500 bonus to any of its employees who writes a technical article that is accepted for publication. If the publication pays for the article, the employee gets to keep that money as well. By using the "Journal" information, combined with a bonus incentive and the basis of information many employees have, a turfgrass sod producer could achieve tremendous public relations exposure, at a very small cost. RENTING EQUIPMENT TO YOUR FARM MAY SAVE YOU TAX DOLLARS When your farm needs additional equipment, one means of getting it (and realizing a tax advantage) may be for you to personally purchase the item and then rent it to the farm. By charging the farm a reasonable amount of rent... neither too high nor too low, you receive the passive rental income that can be used to offset passive losses; you can depreciate the item and thus pay tax only on the difference between your rental fee and the depreciated amount. The farm is able to take a 100% deduction for the cost as an ordinary business expense. As with all such activities, the advice of a professional tax adviser is essential before establishing any specific arrangements. PERSONAL TIME MANAGEMENT Prepared by John McPhail, Vice Chairman ASPA Business Management Committee Do you ever feel that there just aren't enough hours in the day to do all the things you need to do? We all feel this way once in a while, and some of us feel this wall all of the time! The key to having the time is making it and managing it. How can we effectively manage our time? Here are a few hints: Priorities! Get your priorities in order and assign the time and effort necessary and reasonable to getting it done. Don't forget to put some personal time near the top of the list or you'll never have any! Personal time is important. If you don't take it, you'll burn yourself out. Don't feel guilty about it either, that's unproductive and you deserve the break. Organize! Get your "act" together. No excuses that you're not an organized type of person. If you are busy, you can't afford the luxury of being disorganized. Anyone can learn to be organized. Making places to put things and then putting those things in their proper places will save you time and aggravation. Delegate! Is there someone else available to do it? It might be worth a little extra time teaching someone how to do a task, if its' one that is repeated often. In the long run, it will save you many hours. Write It Down! Carry a little appointment book, with room for notes. Keep track of your appointments and priorities and refer to it often. An extra advantage to this is that once in a while, you might need to know where you were on a certain date and you'll have that information right at your fingertips. Handle It Once! It is usually more effective and time conserving to deal with someting immediately than it is to put it off. Make It Manageable! Take that big job that is overwhelming you and break it down into manageable bites. Go one step at a time and before you know it, it will be done! Don't waste time and energy agonizing over it, don't keep putting it off, just get it started. Sometimes, a task will pleasantly surprise you and, once begun, be much easier and less painful than you had imagined. A little time can go a long way if you learn how to managed it effectively. MEMBER MARKETING TIP: The "Manderley Report," newsletter is sent to customers and suppliers in the Spring, right before sod sales begin. The response in the way of orders has been excellent, according to John Hope, president of the Ontario based Manderley Corporation. The newsletter also promotes a positive company image. There will be complimentary copies of the Manaderley newsletter at the Ottawa Conference this summer. Ron Nixon, Business Management Committee Chairman 'INDEPENDENT CONTRACTORS' BECOME THE TAXMAN'S LATEST TARGET If you use the services of one or more people on your farm and classify them as "independent contractors," you may be setting your company up for a very thorough review by the IRS. The U.S. Internal Revenue Service now has more than 400 agents nationwide whose primary duty it has become to investigate employers who file 1099 forms and misclassify workers as independent contractors. In just the first half of fiscal 1989, the IRS had cracked down on 750 companies and assesed a total of $50 million in back taxes, penalties and interest. To protect against the problems of misclassification in this very clouded area of responsibility, obtain professional tax help or even file IRS Form SS-8 to obtain an official determination. Some guidance is avail­ able through the answers you give to a list of 20 common-law factors the IRS has developed on past practices. A “yes" answer to the following questions apparently is viewed by the IRS as evidence of an employer/employee relationship: 1. Do you provide the worker with instructions on when, where and how 2. Did you train the worker in order to have the job performed 3. Are the worker's services a vital part of your company's operations? 4. Is the person prevented from delegating work to others? 5. Is the worker prohibited from hiring, supervising and paying 6. Does the worker perform services for you on a regular and continuous 7. Do you set the hours of service for the worker? 8. Does the person work full time for your company? 9. Does the worker perform duties on your company's premises? 10. Do you control the order and sequence of the work performed? 11. Do you require workers to submit oral or written reports? 12. Do you pay the worker by the hour, week or month? 13. Do you pay for the worker's business and travel expenses? 14. Do you furnish tools or equipment for the worker? 15. Does the worker lack a "significant investment" in tools, equipment 16. Is the worker insulated from suffering a loss as a result of the 17. Does the worker perform services solely for your firm? 18. Does the worker not make services available to the general public? 19. Do you have the right to discharge the worker at will? 20. Can the worker end the relationship without incurring any liability? The proceeding 20 questions are based on IRS Revenue Ruling 87—41 and should be carefully reviewed by professional tax advisers in relation­ ship to particular conditions that may exist in any situation. and facilities? activities performed for your company? the work is to be performed? correctly? assistants? basis? 'SHORT STRIPS' -- Brief, helpful hints that can helpt you today Improve Collections -- when the customer says, "The check is in the mail," politely ask for the check number and date. Lost Customers -- if your farm is hard to find (as many are), print a very simplified map on your letterhead, business cards, ads or other forms your customers will have handy, (a small version if it's on the front, or a larger verion if it's on the back).