Business Information for Entrepreneurs by an Entrepreneur

The H1N1 flu shows no signs of stopping. Most business professionals already know the basics of avoiding this virus: hand washing, stay at home when you are sick, and avoid sneezing or coughing on others. However, these measures simply aren’t enough to stop the spread of the virus. Here are some additional steps that you can take to defend your small business from the effects of H1N1:

• Stock up. Certain types of supplies around the office can help make employees more comfortable and deter the spread of H1N1. Basics like tissues should be made available on every desk, as well as in restrooms and break rooms. Hand sanitizer is another essential that you should make readily available. Keep large dispensers available in public areas and distribute individual bottles to employees to keep at desks. Finally, antibacterial wipes should be kept in stock at all times. Encourage staff to wipe of their desks, telephones and computer keyboards at least once a week. Implementing these measures early on can prevent the spread of H1N1 and other bacteria or viruses in the workplace.

• Prepare for the worst. If H1N1 becomes a problem in your business, it is important that you have a contingency plan in place. This means critical business functions (such as payroll, invoicing, inventory, etc.) should be shared amongst several different employees. Cross-train your employees to cover for others that could be impacted negatively by illness. Develop plans to allow employees to work from home in times of adversity. Allow key personnel to practice critical business functions that they typically aren’t responsible for on a regular basis. It also doesn’t hurt to create a detailed policies and procedures manual to help employees cope when someone is out sick. This manual can be instrumental in keeping the business afloat in the face of adversity.

• Revise absence policies. If your policies regarding absence contain measures that discourage employees from missing work, or harsh penalties for missing work, revise them. Policies should not discourage employees from taking time off when they are ill. Many policies require a written note from a doctor when employees are out sick. Consider revising measures like this during times when hospitals and doctors’ offices are swamped with patients. This is perhaps one of the most critical measures that can reduce the risk of H1N1 spread in http://www.bizthreads.net/wp-admin/post-new.php?preview=truethe workplace. In addition, if someone comes to work and is obviously ill, encourage them to go home and take the rest of the day off.

You can never be too careful when it comes to protecting the best interest of your employees and your business as a whole. These steps will keep your employees healthy and your business fortified against H1N1.

Do you think your employees are desperately seeking healthcare benefits from your small business? It’s completely natural for a business owner to assume that employees are interested in benefits. Whether it’s a retirement savings plan, incentive program, or health insurance, these are perks that people definitely want.

However, it’s unclear as to which benefits employees desire the most. An employer may automatically assume that healthcare benefits are at the top of employees’ wish lists. A recent survey revealed otherwise.

Is Healthcare a Concern for Your Employees?

George S. May International, a management consulting firm, recently conducted a survey of 1,046 small business owners. The study asked if the business owners had ever questioned employees directly about healthcare coverage. The survey revealed that 55% of small business owners had never even asked if their employees wanted healthcare benefits. The same survey indicated that chief complaints from employees of small businesses included salary size, pay equity within the organization, and poor benefits programs. Healthcare coverage was not specifically addressed by the majority of respondents.

What does it all mean? Employers need to start taking a different approach to addressing the needs of employees. Based on the survey, employees are indicating an interest in taking ownership over their own money and investing it as they see fit. For example, if an employee was given the choice between an increase in salary or health insurance, odds are that they would opt for the salary increase. This money could be invested in a retirement fund, placed in a high yield savings account, or used to participate in a healthcare savings plan.

Save Money by Asking Your Employees about Their Benefits

Modern employees want flexibility and input when it comes to the dollars they earn. Small business owners can actually save money in the long run by taking employee needs into account and responding accordingly. Healthcare coverage is extremely costly for small business owners, and it might be possible to save big in the long run by beefing up on salaries rather than investing in an expensive group policy.

The U.S. Census Bureau identifies 47 million Americans as uninsured. However, it is interesting to note that many employees, 43% of those 46 million, are categorized as “voluntarily uninsured.” This means that they have access to healthcare coverage from employers; however, they opt not to take it. This is evidence that employees want to exercise control and stewardship over their money. In summary, it is important to take the needs of employees into account when developing benefits programs. They are the backbone of your small business, and keeping them satisfied will provide magnificent long-term results for your organization.

Small business owners are often faced with the question of whether to hire people as employees or independent contractors. The answer isn’t always cut and dry, as several factors come into play when making a wise decision in this arena. The fact is that hiring someone as an independent contractor when they should be classified as an employee can be quite costly for an organization. This guide should be a helpful tool for you to avoid mistakes when answering this question for yourself.

• If controlling the way in which a job is done is as important as the end result, hire an employee. When the position can directly reflect positively or negatively on your business, it is probably best to hire an employee. Any one that has direct contact with your customers should absolutely be an employee of your company. When a person is your employee, you have the right to train and assess how they are doing the job you have given them. The use of discipline is also permitted to create whatever behavior you desire. In contrast, when you hire an independent contractor, you will only have control over the end result – and not how they get there.

• When only the end result is important, hire an independent contractor. If the job you are trying to fill only reflects upon your business by whether it is completed or not, you should probably hire an independent contractor. An independent contractor requires less liability and commitment from you as an employer and ultimately costs less. As long as you are certain that you will not need to control how this person behaves or accomplishes the tasks you assign, this is the way to go.

• Be sure to classify your hires correctly. Improperly declaring those who work for your business is a fast way to get in trouble with the IRS. Extensive fines and penalties can and will be levied against organizations that are found in violation. If you are unsure of how a hire should be categorized, you can file form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding.

There are benefits for hiring employees and independent contractors alike. Be sure to assess each job carefully before making a decision. If you are unsure, do not hesitate to get help from the IRS so they can’t harm you later.

The federal government is falling short on its goal to award contracts to small businesses. While numbers have improved slightly, there are still millions of dollars to be had by winning one of these coveted contracts.

The Obama administration has recently mandated a government wide push to connect small businesses with these opportunities. Perhaps the largest problem hindering the government from meeting their small business quota is that qualified companies are ill informed of these opportunities. The following guide will provide some wisdom to help you secure a government contract.

• Identify areas of government that may be interested in your products and services. This can take some research, but can be more than worth your time in the long run. The federal government is bigger than ever and requires a wide range of goods and services that you may be qualified to provide. Get your companies name on the registers of any and every branch of government that you feel qualified to service.

• Network with key decision makers in the offices you’ve targeted to serve. Once you are on the register, then you have to get picked. Lobbying is how things are accomplished in government, and if you want that big contract for your business, you will have to learn to lobby. Perhaps forming a team to strategize around this new goal for your company would be highly beneficial. Put your heads together and practice schmoozing.

• Craft the perfect bid proposal. Larger companies have specialists and entire departments just for this task. You may not be able to devote the same type of resources, but you can stress the importance of being able to relate the strengths of your business to the needs of the government branch to whom you are proposing. Get your hands on some examples of winning bid proposals and study them.

The federal government is having a hard time living up to the standards it has set for itself for contracting work to small businesses. However, there are valuable opportunities to be had in the way of government contracts for your organization. The right combination of research, persistence, and savvy could lead to Uncle Sam taking your business to the next level.

There is no question that the current period of recession has changed how successful business is conducted. Those organizations that are unable or unwilling to analyze and adapt to conditions quickly have found themselves in a difficult situation.

Adapting to recession-induced changes is critical to maximizing your revenues while minimizing your expenses – especially when it comes to marketing. It is no secret that marketing isn’t easy where money is tight. A business that excels at defining and identifying shifts in their target consumer market will be able to stay afloat and perhaps even thrive in poor economic conditions. The following guide will provide some tips for classifying and catering to your target customers.

• Actively profile the people you are serving. This is an easy way to determine the make-up of your customer base and whether or not there are any changes. Really make an effort to listen and get to know the customer well. Many times they will tell you exactly how you can better meet their needs, while others will require you to use your intuition to make educated guesses. Experiment to find the most effective way to gather information in your organization.

• Be able to adjust strategies quickly. Measures should be taken to ensure your business is as organic as possible in its ability to shift and shape to fit the market place. Frequent meetings and tweaking plans weekly to capitalize on observed trends are necessary to maximize competitiveness.

• Use your sales figures. If you offer a multitude of products and services as many organizations tend to do, you can learn a lot from the numbers. Study them well and ask yourself questions about what they say about your customer. Is there a trend toward quality or quantity? What do the purchases of your customers say about their values?

The bottom line is that a financial crisis will certainly affect your target customer. Perhaps a business that mainly served a blue collar customer needs to adjust to capture at least some of the white collar market. The important thing for businesses is to identify shifts in the market place, predict how that could affect their target customer, and be ready to adapt in such a way that new needs are met promptly.

In case you haven’t heard, outsourcing isn’t just for the prosperity of corporate giants. Small business owners are starting to realize the potential for benefit and growth from this practice as well. Numerous aspects of most businesses can be contracted out to a variety of different firms, individuals, and even overseas. The question then becomes, “what types of tasks should I outsource and to whom?” This guide should provide some practical advice and practical answers to that question.

What Should You NOT Outsource?

The first decision that should be made when considering sending work elsewhere is determining what not to outsource. Any facet of operations pertaining to your company’s mission statement should be strictly performed in house. It is very important to retain complete ownership of everything that factors into the identity of your business. However, this should leave a plethora of options for you to outsource, such as book keeping, word processing, public relations, and human resources, for example. Now you can begin to identify where you stand to gain the most from outsourcing.

Suppose your organization relied heavily upon a large amount of creativity and ideas from your staff, but they had to spend a lot of time typing and copying. The typing and copying would be a prime candidate for work that could easily be outsourced to another firm, and productivity toward the end goal of your own company would surely increase. This is a great example of the types of situations where you can benefit from outsourced labor. Outsourcing your administrative tasks gives you and your team more time to focus on your core operations.

Who Should You Hire to Outsource?

Once you decide what to outsource, then it is time to decide who to hire. This can be a tricky endeavor, as it can take time to find the right business process outsourcing firm to complement your company. Experts suggest trial periods before signing any extended contracts in order to avoid a poor decision. Another good idea is establishing a liaison between the two companies to enhance accountability and improve timing between your business and those handling your sensitive affairs.

Outsourcing can improve your ability to focus on the core principals of your business. This can undoubtedly have a positive effect on your profitability. However, in order to maximize the constructive aspects of outsourcing, it is important to make a few key educated decisions. Doing so will make the decision to outsource a very rewarding one.

Before you choose a phone system for your business, it is a good idea to identify your needs. You want a phone system that is suited for your current needs, as well as one that is scalable for your future growth.

Only after you have a very clear picture of what you absolutely need are you ready to start shopping and making decisions. When you are weighing the positives and negatives of each system, you’ll be able to eliminate any that don’t meet your requirements. Here are some helpful things to consider when thinking about phone systems:

Growth & Technology. Think about a system that can handle both traditional telephone lines and the new internet lines such as those offered by Vonage. Being able to support the internet lines can save your business a lot of money, especially on long distance fees, while still allowing you to rely on the established infrastructure of the old phone system. A phone system that can grow with your company is the wisest option.

Maximizing on Quality. Find a system that will allow you to increase your maximum number of lines and will let you add other features as well. Be careful to pick a phone system that will support your voicemail needs. One expert recommends at least 15 to 30 minutes of storage per user to prevent overloading you system.

Cheap standard CD players are simply not enough for waiting music, as they won’t last longer than a few weeks before breaking down. If you invest in a higher-quality CD player with disc changing technology, you’ll actually be saving yourself money and a headache.

Finally, choose a system that is compatible with any phone so you don’t need to spend $100 for the receiver in your storage room.

Each business is an organic entity and will have unique communication needs. Keep this in mind and don’t let a salesperson try and sell you on a one size fits all quick fix. Don’t be afraid to make a concrete list of needs and let several different vendors present a package to accommodate you. This is a great way to shop for the best price, as well as test the waters in what to expect in the way of customer service.

The state of the economy has frozen plans for many people and businesses. Setbacks have become commonplace, and individuals and businesses have been forced to wait for the economy to rebound. Thankfully, there is some good news for seekers of small business loans! The market appears to have made a recovery into figures just shy of the numbers seen before the recession, and experts are saying the resurgence is largely unrelated to government programs designed to produce such results.

Pre-Recession Levels

Before the recession, many small business loans given by banks were quickly sold to investors in bundles known as “asset backed securities” (ABS) on what is known as the “secondary market.” While small business loans are a relatively low risk investment, a problem arose when they were regularly bundled with mortgages and other loan types. When the housing crisis hit, the bottom fell out of the ABS market, which is why lending for small businesses slowed down quickly.

Government Intervention

The government sprang in to action with a $200 billion plan to subsidize incentives for investors to buy up asset-backed securities. The only problem for small business loans was that investors were primarily interested in auto and credit card loans, leaving small business loans with a very small piece of the proverbial pie. Small business loans are typically just not as attractive because they don’t provide as large of a return.

Today’s Small Business Credit Market

Even though the government plan was only helping small business loans minimally, the market still has seen a nice recovery. One reason is obviously that the credit markets have begun to stabilize. Another is that new investors are starting to participate that have a less classical view of the marketplace. This is music to the ears of potential loan recipients.

Banks still aren’t handing out money the way they did previously. A loan applicant is still bound to face a lot of resistance, but the recovery of the secondary market should be something that will grease the wheels in moving forward. Maybe you won’t have to put your dreams on the back burner for as long as you thought!

The nature of small business includes a myriad of risks. After all, no investment can escape the inevitability of the risk-to-reward ratio.

There are many different types of risks in small business, and depending on the owner’s level of risk tolerance, a company may face more risk than security. Here are three of the key risks that small business owners often make, as well as tips on how to reduce them and protect assets.

Risk #1: Not having enough cash in hand

Small business owners often fail to make the grade when it comes to cash flow management. They rely so heavily on business lines of credit, investors and credit cards that it’s hard to see where the actual dollars are. One contingency measure to combat cash flow problems is determining how much money the business actually has and planning for the worst. Asking certain questions can help address cash flow issues. What if the biggest client suddenly stopped buying? How long could the business last if no more revenue was generated? What expenses could be cut in a crisis? Simply asking these questions is enough to start developing a contingency plan.

Risk #2: Not aligning insurance with the business

Insurance is complicated, but it’s one of the best ways to protect against adversity. Often times, business owners fail to align their insurance policies with their actual assets and risks. This is especially true when changes arise in the business (i.e. moving to a new location, purchasing new equipment, etc.). Make sure to change your insurance policy when you make a significant change in the business.

Risk #3: Relying too much on one person to manage critical business functions.

Small businesses often feature small numbers of employees. A serious risk is relying too heavily on one person to take care of pertinent functions. If one person in the company knows how to do payroll, and that person is injured seriously in a car accident, it creates a significant problem for the business. Cross-train employees and make sure that no one person becomes indispensable.

Addressing just one of the above issues can significantly reduce the level of risk in your small business. Tackle all three, and you will have a business that is fortified against adversity.

Small businesses are constantly looking for ways to provide employee benefits, while still maintaining control of overhead. One asset that can help small business is a health savings account (HSA). HSAs are designed to allow taxpayers to set aside funds to cover the costs associated with medical care. The dollars placed in the account are not subject to federal income tax when deposited. Individuals who do not have health insurance can benefit from using HSAs as a means to cover their out-of-pocket medical expenses.

Benefits of HSAs

Here are some of the ways that HSAs save money for individuals and small business owners who participate:

• The tax break that covers the funds deposited in HRAs is passed on to the individual accountholder. The more money deposited in the account, the less federal income taxes the accountholder will have to pay.

• HSAs are conjoined with a high-deductible health insurance plan that is the responsibility of the individual. This means employers do not have to assume the costs associated with group health insurance plans.

• HSA funds can be rolled over into the next year. There are no restrictions or penalties for not using all of the funds in a calendar year.

• HSAs accrue interest over time.

HSAs are unique alternatives for small business owners wishing to help employees stay healthy and manage the costs of healthcare. They feature less risk for the employee and more benefits for the individual. Implementing HSAs in a small business is evidence of the employers concern for the welfare of employees, yet it is an affordable and manageable option at the same time.

HSAs for Companies Large and Small

While HSAs are great for individuals and small businesses, larger businesses are also turning to them as a means of covering employees that are not benefitted by health insurance plans. Industry leaders like Walmart and UPS have developed HSA programs to extend a helping hand to some of their employees. Overall, HSAs are a unique alternative to expensive health insurance programs. They provide small businesses with the level of affordability and flexibility that is desperately needed in these tough economic times.