Mark J. Kohler – Licensed CPA, Attorney, Author, Podcast Host, Entrepreneur

Mark J. Kohler gives three excellent pieces of advice to entrepreneurs who want to succeed in the US market, which is vast and competitve, as he points out at CEOWORLD magazine. 

Mark J. Kohler is a licensed CPA and tax attorney with a YouTube channel with over 500.000 subscribers. He posts weekly tax and financial advice content, teaching millions of Americans how to manage their money and improve their financial lives. 

His points about changes, challenges or opportunities in the tax space in the near future are worth taking into consideration. Specifically, business owners must listen to him. You can read the whole interview for CEOWORLD magazine below.                                                                         

Q: What advice do you give to young entrepreneurs who want to succeed in the US market in the coming years? 

Mark J. Kohler: Niche Down and Specialize (But Stay Adaptable): The US market is vast and competitive. Don’t try to be everything to everyone. Identify a specific niche where you can become an expert and offer a unique value proposition. This allows you to target your marketing and resources more effectively. However, stay adaptable. The market is constantly evolving, so be prepared to pivot or adjust your niche as needed. Don’t be afraid to experiment and iterate based on customer feedback and market trends. For small businesses, agility is your superpower.

Build Genuine Community and Relationships: In the digital age, it’s easy to get caught up in online marketing. While that’s important, don’t underestimate the power of building genuine relationships. Network within your local community, attend industry events, and connect with other business owners. Word-of-mouth marketing is still incredibly powerful, especially for small businesses. Cultivate strong relationships with your customers – provide excellent service, listen to their feedback, and make them feel valued. These personal connections can be a huge differentiator in a crowded marketplace.

Embrace Technology Strategically (But Don’t Lose the Human Touch): Technology is essential for modern businesses, but it’s not a magic bullet. Use technology strategically to streamline operations, reach new customers, and analyze data. However, don’t let technology replace the human touch. Customers still crave personalized experiences and genuine connection. Find the right balance between automation and human interaction. For small businesses, this might mean using CRM software to manage customer relationships while still taking the time to personally respond to inquiries or offer personalized recommendations. Use technology to enhance the customer experience, not replace it.

Q: What are some of the most common mistakes small business owners/entrepreneurs make from your experience?

Mark J. Kohler: Undercapitalization and Poor Financial Management: This is arguably the most frequent killer of small businesses. Many entrepreneurs underestimate the amount of capital they need to get started and sustain operations until profitability. They might miscalculate startup costs, fail to account for unexpected expenses, or struggle with cash flow management. Poor financial practices, like not separating personal and business finances, neglecting bookkeeping, or failing to track key metrics, can further exacerbate the problem. Solution: Develop a realistic financial plan, secure adequate funding, and implement sound financial management practices from the outset. Seek advice from accountants or financial advisors.

Lack of a Clear Target Market and Marketing Strategy: Trying to be everything to everyone is a recipe for disaster. Many small businesses fail because they haven’t clearly defined their target market. They don’t understand their ideal customer’s needs, preferences, and buying habits. This leads to ineffective marketing campaigns that waste resources and fail to generate sufficient leads. Solution: Conduct thorough market research to identify your target audience. Develop a focused marketing strategy that resonates with that audience and utilizes the most effective channels for reaching them. Don’t be afraid to niche down and specialize.

Neglecting Customer Service and Relationship Building: In today’s competitive landscape, customer service is a critical differentiator. Small businesses often have the advantage of being able to provide more personalized attention than larger corporations. However, some entrepreneurs neglect customer service, failing to respond promptly to inquiries, address complaints effectively, or build lasting relationships with their customers. Solution: Prioritize customer service. Train your staff to provide excellent service. Actively solicit feedback and use it to improve your offerings. Remember that word-of-mouth marketing is incredibly powerful, and happy customers are your best advocates. Cultivating strong customer relationships can lead to repeat business and long-term success.

Q: Do you anticipate any changes, challenges or opportunities in the tax space in the coming years?

Mark J. Kohler: Potential Expiration of Key Tax Provisions: Several provisions from the Tax Cuts and Jobs Act (TCJA) of 2017 are set to expire at the end of 2025. This could significantly impact small businesses. For example, the 20% Qualified Business Income (QBI) deduction, which allows many pass-through entities (like sole proprietorships, partnerships, and S-corporations) to deduct up to 20% of their qualified business income, could disappear. This would effectively increase the taxable income for many small business owners.

• Challenge: Small business owners need to be prepared for this potential change. It’s crucial to work with a tax professional to understand how the expiration of these provisions might affect their tax liability and to explore strategies for mitigating the impact.

Increased IRS Scrutiny and Enforcement: The IRS has been receiving increased funding, which is likely to lead to more audits and enforcement actions. Small businesses, especially those with complex tax situations or those that have experienced significant growth, may face greater scrutiny.

• Challenge: Small business owners need to ensure they are meticulous with their record-keeping and tax filings. It’s more important than ever to have accurate and organized financial records and to stay up-to-date on all tax laws and regulations. Consider seeking professional tax help to minimize the risk of errors or omissions.

Opportunities in Green Energy Incentives: The Inflation Reduction Act (IRA) introduced a number of tax credits and incentives for businesses that invest in green energy. This presents a significant opportunity for small business owners to reduce their tax burden while also becoming more environmentally friendly.

• Opportunity: Small businesses can explore investing in renewable energy sources, energy-efficient equipment, or other green initiatives to take advantage of these tax breaks. This not only benefits the environment but can also lead to long-term cost savings.

Q: As a successful author, podcast host and business person, what are your goals for 2025?

Mark J. Kohler: Expand Audience Reach and Engagement: A key goal for any creator is to grow their audience and deepen engagement. For an author, this might mean launching a new book and actively promoting it through book signings, online events, and social media. For a podcaster, it could involve increasing listenership by exploring new topics, interviewing high-profile guests, and promoting the podcast on different platforms. For a businessperson, this could translate to expanding market share, reaching new customer segments, or building a stronger brand presence. A combined strategy might involve leveraging the book and podcast to drive business growth and vice-versa, creating a synergistic effect. Metrics for success would include increased book sales, podcast downloads, website traffic, social media followers, and overall brand awareness.

Diversify Revenue Streams: Relying on a single source of income can be risky. A smart businessperson, author, and podcaster would likely aim to diversify their revenue streams. For an author, this could involve exploring speaking engagements, online courses, or merchandise sales. A podcaster might introduce sponsorships, premium content, or affiliate marketing. A businessperson could explore new product lines, expand into different markets, or develop strategic partnerships. The goal is to create multiple income streams that are less vulnerable to fluctuations in any one area.

Enhance Community and Build Meaningful Connections: Success isn’t just about numbers; it’s also about the impact you have. A 2025 goal could be focused on building a stronger community around the author’s work, the podcast, or the business. This might involve creating online forums, hosting workshops or events, or actively engaging with followers on social media. The emphasis is on fostering genuine connections, providing value to the audience, and building a loyal following. For a business, this could translate to building stronger customer relationships through loyalty programs or personalized service. For an author and podcaster, this could mean creating a community where readers and listeners can connect with each other and engage in meaningful discussions.

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