Smart Tax Breaks Down Barriers to Business Ownership

Smart Tax Breaks Down Barriers to Business Ownership

While many businesses are buckling down due to the rocky economic climate, Smart Tax, a newly launched tax preparation franchise, is offering two new programs to assist driven entrepreneurs become business owners and grow: in-house financing and free conversions for the Smart Tax brand to qualifying business owners. Smart Tax has led the industry in innovative approaches to growth and has tripled from 10 locations at the start of the 2010 tax season to 29 franchise locations operating in 2011. With 45 territories already sold throughout New York, New Jersey and down the eastern seaboard, Smart Tax is counting on these initiatives to keep its growth rate high and steady.

“I have found that there is no shortage of entrepreneurial-minded individuals despite the recession,” said Smart Tax CEO and founder Nick Rizzi. “We’re working to help those individuals break into the industry or bolster their existing companies with the strength of a franchised system.”

The in-house financing program allows any existing franchisee to finance the franchise fee and up to $20,000 of build out costs through Smart Tax via an interest-free loan. In an economy in which many entrepreneurs are struggling to get small business loans or forced to make down payments as high as 30 percent of a loans total value, this move will greatly facilitate entrepreneurs seeking to expand their business.

“In-house financing is something we’ve been planning for a long time,” said Rizzi. “If someone has proven that they’re serious about the business and has what it takes to be successful, we want to remove any barriers that may prevent them from taking their business to the next level.”

Many of Smart Tax’s existing franchisees were able to take advantage of this initiative and open a second location for 2011 tax season, when they would otherwise have been unable to secure the financing for this continued growth. New franchisees can also receive up to $10,000 in financing towards their franchise fee.

Smart Tax’s other initiative allows independent tax preparation business owners who file at least 250 returns a year to completely waive the franchise fee and convert directly to a Smart Tax franchise. Conversions are a growing trend in the franchising industry and allow entrepreneurs who may be struggling to grow their business to take advantage of an established brand name, national marketing programs and the support of a proven infrastructure. Additional territories are also available with no franchise fee based on the number of returns a service files yearly.

“There are many business owners who have spent years developing their business and building personal relationships with their clients but end up hitting a plateau due to any number of factors,” said Joseph Fontana, Smart Tax’s Vice President of Franchising, who has assisted two of Smart Tax’s new franchisees convert their existing business into Smart Tax. “We’re offering those entrepreneurs the opportunity to take their business to the next level under the Smart Tax brand name.”

The barrier-breaking initiatives are two of the latest innovations from a brand already on the cutting edge of the tax preparation industry. Smart Tax also offers a variety of highly-flexible build outs, allowing entrepreneurs the possibility of opening a location in downtown spaces, strip malls and even kiosks in wholesale retailers.

“We’re always looking for new ways to help entrepreneurs who are passionate about our industry in addition to offering the highest quality service to our clients,” said Rizzi. “With these initiatives, we’re looking forward to another strong year of tremendous growth.”

Smart Tax featured in Life Insurance Selling

Recently, Smart Tax was featured in the magazine Life Insurance Selling, which focuses on trends in the financial and insurance industries. Smart Tax’s Vice President of Franchise Development and Queens Franchisee, Joseph Fontana, wrote an article for the publication about his experiences in expanding his portfolio and adding taxes. As a long-time financial planner and insurance broker, Fontana most recently became a tax preparation business owner as well, which has allowed him to offer a whole new service to his clients. Finding that taxes, unlike some other financial services, were recession-proof, Fontana has found a profitable business model to service his clients and create a stronger, trusting relationship with his clients. In the article, Fontana shares his experience and offers advice to other insurance brokers looking to make the leap into tax preparation. Click here to view the full article!

Breaking Into Tax Preparation
By JOSEPH FONTANA

I was a financial advisor for 17 years, working with my clients to provide a wide range of services including life insurance, accident insurance, health insurance as well as mutual funds, stocks and bonds. At the time, I was working at a bank in Brooklyn, where I provided services to my clients through this channel.

Throughout my life, I always dreamed of owning my own business and servicing my clients with a more personal and customized relationship. In light of the prolonged economic crisis, specifically following 9/11, and the changes our industry was going through, I saw my career coming to an inevitable end. Interest rates were increasing, and people were not investing. Even right now, there are trillions of dollars sitting in the money market that people are not investing.

(Read More)

Smart Tax featured in the Chattanooga Times Free Press

Recently, Smart Tax was featured in the Chattanooga Times Free Press in an article entitled "Chattanooga franchises let entrepreneurs focus on business operations." The article is about launching a business in the current economic climate and why franchising is often an attractive method for business ownership. In the article, Nick Rizzi, CEO of Smart Tax, discusses the tremendous growth potential for Smart Tax in the Chattanooga market and the ability to run a profitable tax preparation business. Rizzi discusses the low cost of entrance for opening a Smart Tax in which the business can be up and running for as low as $20,000. This low start up cost has allowed Smart Tax to expand incredibly fast, tripling in size over the past year despite the economic climate. Click here to view the article in its entirety.

Chattanooga franchises let entrepreneurs focus on business operations
By ELLIS SMITH
February 2, 2011

Starting a small business is risky.

With one bad decision, an entrepreneur could watch his entire savings go down the tubes in a matter of days.

Only 50 percent of small businesses survive more than five years, according to the U.S. Small Business Administration, a statistic that has some potential business owners searching for safer alternatives.

(Read More)

Franchisee Profile: Jorge Quintana, Owner of Smart Tax Queensbridge

Opening Date: January 3, 2010
Location: Queensbridge

Q: Where are you originally from?
A: I was born in Peru and moved to New York when I was four years old.

Q: Before Franchising, what were you involved with?
A: Before I partnered with Smart Tax, I served in the Marine Corps for four years and was released with an honorable discharge. Initially upon returning to New York, I started working with my two sisters in a family owned and operated business. After working with them for a short while, I was inspired to take the H&R Block class to start learning more about the tax preparation industry. With continued urging from my sisters to go back to school and further my education I decided to return to school to pursue my CPA license in addition to the class I was taking. Currently, I am still working on getting my degree in accounting, as well as working with Smart Tax to help the brand evolve. I am looking forward to opening my first location and I hope to one day open multiple locations of my own throughout the area.

Q: How did you learn about the brand?
A: I learned about the brand first hand from Nick Rizzi. About a year after meeting Nick in the H&R Block class, he called me and asked for some advice on getting a business up and running in the tax industry. After meeting Nick and looking at the business plans and DMA of the neighborhoods he was scouting out, I realized that Nick had a genius idea and agreed to help with opening the first location in Redhook in 2006. After seeing the successful business model that Nick Rizzi had created in the first few years and getting the franchising aspects up and running, I decided that I wanted to open a location of my own, realizing the growth potential of the brand.

Q: How do you see the brand connecting with your local community?
A: From day one, Smart Tax has tried to find every way possible to connect with the residents of each community we enter. In 2006, Nick said that he wanted to give something to every customer that came through the door… and we still strive to connect in that way with each customer. However, what we give back has evolved as we have established a name for ourselves. With my new location in Queens, I want to sponsor some of the little league baseball programs in the area and the youth rugby league, a non-profit organization that is helping to introduce rugby into the United States at the youth level.

Q: What are your future goals? Development plans?
A: The most immediate goal that I have set for myself is to have 1000 tax returns filed at my Queensbridge location during my second year in business. As for development plans, I plan on opening at least two more locations in Bay Ridge, which has a different clientele than the existing Smart Tax locations. I plan to connect strongly with the business community in the region, who I have already built strong relationships with over the years.

Economic Times Call for Innovative Measures; Smart Tax Offers Free Franchise to Existing Franchisees

To Adapt to Economy, Smart Tax Sparks Growth by Eliminating Franchise Fee for Current Franchisees

BROOKLYN, NY – While many businesses have slowed growth due to the rocky economic climate, Smart Tax franchise, a newly launched 10-unit tax preparation concept, is just starting to speed up. In an effort to adapt to the economic climate and spark growth within the Smart Tax system, Smart Tax has eliminated the franchise fee for existing franchisees signing a franchise agreement in 2010, allowing Smart Tax franchisees to continue developing the brand despite the economic climate and mature their franchise portfolios in multi-unit ownership.

“Despite being launched in the rocky economic climate, Smart Tax has continued to grow due to the dedication and passion of the franchisees in the Smart Tax system,” said Steve Beagelman, senior franchise advisor to Smart Tax and Founder of SMB Franchise Advisors, a franchise consultancy firm. “To reward its franchisees and strengthen its systems further, Smart Tax has decided to eliminate the franchise fee to spark growth with existing franchisees who have already found success in its system and desire multi-unit ownership.”

The current economy has been labeled one of the worst in centuries and the franchising industry as a whole has seen a decline in development. As a way to reduce barriers of entry and continue growing, Smart Tax CEO Nick Rizzi has eliminated the franchise fee for franchisees already involved in the system to allow these entrepreneurs to take advantage of the prime real estate market.

This program has allowed Smart Tax franchisees to bypass the financial crisis and continue building the brand throughout the U.S. More than 80 percent of the franchisees are taking advantage of this initiative, allowing Smart Tax to open up five new locations in Texas, New Jersey, and New York.

“I saw this as an opportunity to strengthen my franchise portfolio by adding a new location,” said Mike Leibowiz, Smart Tax’s first franchisee and owner of three Smart Tax locations in Staten Island and Bayonne, NJ. “From the moment I made the decision, Nick Rizzi and I have been scouting out new real estate and planning my expansion strategy to further build the brand in the area and increase the impact of localized marketing efforts.”

Brooklyn franchisee Yvonne Murray agrees. The franchise fee elimination together with the success of her Brooklyn franchise has inspired Murray to sign on for her second Smart Tax location in Brownsville, NY, which will open for tax season 2011. The financial liberty has also allowed her to focus on what she considers the most important aspect of running a good business: community involvement. She has funded summer programs and other charitable initiatives, and even been able to start a Smart Tax Little League organization.

“It’s all about community,” Murray says. “A thriving business has a responsibility to give back. Smart Tax understands this and has allowed me to do a lot of really great things for the neighborhood I love so much. It doesn’t get much better than this.”

Smart Tax recently featured in the NJBIZ

Tax preparation franchise aims for major N.J. expansion
By Beth Fitzgerald

Smart Tax, a New York-based tax preparation franchise with locations in Bayonne and Asbury Park, aims to have 20 New Jersey offices open by 2012, according to founder Nick Rizzi.

Rizzi, who worked as a financial planner for 16 years, launched Smart Tax in Brooklyn, N.Y., in 2005, began franchising in late 2009 and now has 10 locations in New York, New Jersey and Texas.

Smart Tax attracts franchisees who were downsized from the financial services industry, have worked as bookkeepers or financial planners, or are semiretired and want to work several months a year during tax season, Rizzi said.

“New Jersey is a great spot for this franchise, because everyone needs to get their taxes done, they need direction, and I hope we will help them do their taxes,” Rizzi said. (Read More)

Smart Tax Featured in The Wall Street Journal, Small Business Section

Today, Smart Tax Franchise was featured in The Wall Street Journal, in an article discussing small business expansion throughout 2009 and into 2010. Despite the economic climate where many small businesses are experiencing slow development and a decline in customers, Smart Tax is experiencing rapid growth. In the article, I discuss certain methods for finding retail locations for lower costs and how I came across some of our Smart Tax locations. A portion of the article can be read below and you can find a link to the entire article below as well.

Location, Location and More Location
With vacancy rates up and rents down, it's a great time to grab extra space if you need it
By Raymund Flandez

For some small-business owners, the terrible economy holds an unexpected silver lining: It's a lot easier to get more space.

As hosts of businesses close their doors, vacancy rates are soaring and rents are plummeting. So, small companies that are still on their feet—and looking to expand—suddenly have lots of leverage with landlords. And they're making the most of the chance, snaring prime locations and larger spaces, often at a fraction of the regular asking price.

Crisis and Opportunity

In early December, for instance, Sindi Major-Martinez, president and chief executive of Sindel Technologies LLC, moved her IT-services firm to a new location in Phoenix. At the new building, she's paying $21 a square foot for 4,400 square feet—versus $23 per square foot for 3,000 square feet in her previous lease. It's an even better deal considering that the new location was valued at $29.50 a square foot recently, and the current rent also covers utilities and cleaners.

"It really emphasizes that there are good things out there, even though things are really bad," says Ms. Major-Martinez, who estimates she'll save about $60,000 in the first year.

(READ MORE)

Franchisee Spotlight: Yvonne Murray, Owner of the Brooklyn Smart Tax Location

This week, for our franchisee spotlight, we would like to introduce you to Yvonne Murray, franchisee one of the Brooklyn locations of Smart Tax. Below is her story.

Local Entrepreneur Becomes Business Owner of Brooklyn Smart Tax; Step-Above Tax Preparation Services

BROOKLYN, NY – While many businesses are slowing down due to the rocky economic climate, Smart Tax franchise, a newly launched 10-unit tax preparation concept, is just starting to speed up. Smart Tax is a step above the competition by offering quicker returns, better services and is expanding rapidly, now opening their newest location in Brooklyn at 928 Myrtle Ave.

“I have heard Nick Rizzi talk about his dream of creating Smart Tax for years and I am so excited to be a franchisee in this fresh new concept,” said Yvonne Murray, franchisee of the Brooklyn location speaking about Smart Tax’s CEO.

Before Smart Tax was even an idea, Yvonne Murray worked closely with Nick Rizzi, founder and CEO of Smart Tax, at the New York Community Bank. It was there that Rizzi would tell Murray his ideas and aspirations about opening his own business. For 2-years Murray worked at one of Nick Rizzi’s Smart Tax location during the tax season, where she managed the location that she now owns herself. Now she has taken the next step as a Smart Tax franchisee and is fully committed to Smart Tax. She plans to develop two more locations within the next three to five years.

Yvonne is a dedicated and hard working business woman who still manages to raise three children, with her fourth due at the New Year. She has taught her 15 year-old daughter a lot about the business already, including how to use their system of filing taxes. Yvonne hopes to keep this business in the family and that one day her children can have a bigger role in Smart Tax.

CEO and Founder Nick Rizzi grew Smart Tax into four small successful locations, after launching his first location as a 29-year old entrepreneur using his life savings and a credit card. Rizzi created his concept a step above the competition by offering quicker returns and better services.

Despite the economic climate and people cutting back on spending, tax returns is one appointment people can look forward to every year—and people can get their taxes processed at Smart Tax in as quickly as an hour for a very low cost.

“I wanted to create a system one-step ahead of competition and provide a service that our customers valued in each community we enter,” said Rizzi, noting he plans to have 100 locations by January 1, 2012. “Yvonne Murray, who has been there for me since day one, is a great addition to the Smart Tax team. I know she will do amazing things to help strengthen and grow this franchise.”

Smart Tax's Harlem Franchisee, Kevin Jimenez, Featured in Harlem Business News

Smart Tax's Harlem franchisee, Kevin Jimenez, was recently featured in the Harlem Business News. The article delved into Jimenez's entrepreneur story and the new Smart Tax location will bring to the community. Below you will find a portion of the article as well as a link to read the complete story online.

Local Partnering Fuels Smart Tax Franchise's Growth

While many businesses are slowing down due to the rocky economic climate, Smart Tax franchise, a newly launched 10-unit tax preparation concept, is just starting to speed-up.

Smart Tax is a step above the competition by offering quicker returns, better services and is expanding rapidly, now opening its newest location in East Harlem at 1799 Lexington Avenue.

"I never thought about owning my own business until I discovered Smart Tax, with a low start up cost and a strong system in place, it is just such a great brand, I jumped at the opportunity to open one of my own locations," said Kevin Jimenez, first-time business owner and franchisee of the East Harlem location.

Jimenez, who is just 28-years old, was introduced to Smart Tax as an employee first, where he began working at one of Nick Rizzi's, CEO and founder, Smart Tax locations. He learned about the growing brand and how the tax preparation industry worked.

(READ MORE)

Smart Tax Featured in Brooklyn Downtown Star and Greenpoint Star

Tax season has officially begun and we are excited here at Smart Tax to jump in head-first and start preparing our customers taxes. Smart Tax, which started out as an idea, has now taken the next step as a franchise concept and we are growing and preparing to launch the tax season with each of our communities. Smart Tax was also just featured in the Brooklyn Downtown Star and the Greenpoint Star about our growth in the region and how Smart Tax came to be what it is today. Below you will find a section of the article and a link to the full article on the website.


On The Record: Nick Rizzi, CEO/Founder of Smart Tax
by Holly Tsang

Nick Rizzi works himself to the bone for three or four months, and then for the remainder of the year, he’s pretty much free to come and go as he pleases. What does he do for a living? Why, he’s an accountant, of course.

He actually started out as a financial planner at a bank, but people were often asking him how certain decisions were going to affect their taxes, so he decided to take some basic tax preparation classes.

It turned out to be something he really liked, and Rizzi realized he could actually make a living doing it.

“Although it might seem boring doing a tax return, you see all the changes going on in your clients’ lives. You celebrate things like people buying a house or having a child,” he said.

(READ MORE)

Smart Tax Was Recently Featured in The Wall Street Journal; End-of-Year Tax Advice

Smart Tax franchise is a newly launched, 10-unit, New York-based tax preparation franchise. As the end of the year is approaching people are looking to take advantage of the different government programs created in order to help people in the current economic climate. Smart Tax was recently featured in the Wall Street Journal on this exact topic and what tax credits people should look out for when filing end of year taxes. Below you will find a portion of the article and a link to the full article on wsj.com:

Federal Recession Aid -- Get It While You Can

By Anna Prior

Time is running out to take advantage of some of the government programs set up to help consumers during the economic meltdown.

Among them are programs meant to shore up the credit markets, which allow for more available credit and lower interest rates on loans for homes and automobiles, as well as tax benefits to entice consumers to buy that new house or car.

Of course, there's always the chance that these programs could be extended; some already are running on extensions and expansions. But here's how they stand for now, how much time you have left to take advantage of them -- and how their end could affect you.

(READ MORE)