Business Information for Entrepreneurs by an Entrepreneur

A few years ago, I asked one of our (now former) employees to do a task that required thinking out of the box.  What he came up with was fairly ho-hum, nothing new or cutting edge, fairly plain vanilla.

The sad fact is that most of what we consider to be out of the box thinking is not any different than what is around us.  Yet all of us are capable of thinking out of the box.

Here is a quick trick I use to stretch my imagination.  Think out of the box with EASE: environment, acknowledge, schedule and enjoy.

• Environment. Creative thinking requires you to look at the world differently. Start by changing your surroundings. It’s easier than you think: just do something you normally don’t do. Try golf, do yoga, taste spicy ethnic food, go bowling – anything other than your normal routine.

• Acknowledge. Say to yourself “I’m doing something new. I haven’t done this before. I’m not scared of it. It’s just new and different.”  Recognize that you are going outside of your comfort zone.  It helps to frame the experience in your mind as one of growth and removing boundaries.

• Schedule. Put it on your calendar, preferably during work hours so you truly feel that you are doing something different.  This is important.  Otherwise, your mind may see it as just doing something after work (in other words, nothing new).

• Enjoy. Have fun. It’s okay, really. Your creative juices will flow freely when you are relaxed and enjoying yourself.

By putting yourself outside of your normal environment and being aware of the fact that you are trying something new, you will be surprised at how quickly you see things you normally would not see.

If you work with a group of people, you have to hold meetings. There is really no way around it. You can minimize the number of meetings you have. You can hold meetings online or by phone. But you still have to hold meetings at some point to discuss the tasks at hand.

So, how much do these meetings really cost? You might be surprised at how expensive they can be. Take our weekly management meeting as an example. We gather in our conference room to go over the key projects we are managing.

Let’s take a look at what goes into calculating the cost for a 1 hour meeting:

• Staff time (i.e., estimated hourly rate of combined staff)
• Proportionate share of employee benefits – vacation time, medical, 401k, training, travel, other perks
• Proportionate share of office space rent, computers, lunches and other direct or indirect costs

We’re a pretty lean company and only those who really need to be in the meeting are there. Yet in our case, this 1 hour meeting costs about $800. Which means that if we run over by just 15 minutes, it costs $1000.

This does not include the productivity costs, which is the time that could be spent doing something else. Of course, you would hope that the meeting is productive enough that it helps guide the team in case we needed to tweak the tasks.

So, what do you think? Is your next meeting worth the cost?

Small business owners certainly don’t need any more bad news during the ongoing economic recession. However, the fact is that trends related to business credit cards will have a deep impact on small business owners. Some business owners are seeing their interest rates skyrocket to as much as 30% on existing credit cards accounts. They are also feeling the pressure from hefty fees for over-the-limit charges and late fees. Others are seeing their lines of credit closed down completely and they must seek out alternative financing options.

The “bright” side of the ongoing economic crisis is that it is forcing business owners to develop a more responsible and directed approach to financial management. Business owners across all industries are learning how to cope without credit cards. Besides having cash in hand, there are several unique alternatives to using existing high-interest credit card accounts for small business owners:

A New Credit Card.

If the interest rates just keep rising and you aren’t satisfied with your current credit card company, consider looking for a new one. Credit card companies are still issuing new lines of business credit to responsible small business owners. A solid credit history will be vital in order to secure a better rate, and standard rates range between 12-14%.

Non-Card Credit Options.

It is possible to get a line of business credit without securing a credit card. Most financial institutions extend business lines of credit to qualifying customers. The business line of credit from a bank or credit union will typically be accompanied by fixed interest rates that are considerably lower than credit cards. Some business lines of credit are as low as 4.25%!

Small Business Association-Backed Loans.

The Small Business Association (SBA) is doing its part to make sure that entrepreneurs have access to funds to make ends meet despite the recession. Qualifying small business owners can apply for an express loan from the SBA that will feature a much lower interest rate than any credit card.

The economic crisis is cause for reevaluating your approach to financial management. Small business owners will find that these alternative solutions to credit card are more affordable and better long-term investments overall.

If you think speed dating is a unique way to meet people, then consider the possibilities when the concept is merged with government contract opportunities! Aspiring contractors wishing to bid on high-paying government contracts now have the opportunity to explore potential matches with agencies through networking events.

How it Works

By law, the United States government is required to award 23% of its contract opportunities to small businesses. These contracts range from web design services and grant writing to marketing or even interior design. Special events featuring government and private sector options are growing in popularity. These organizations are paired with potential service providers who are proud to be small businesses. This is a unique opportunity for business owners to explore the possibility of building a new relationship, and the best part is that the networking events are free of charge.

Strategic Motion

The networking events are highly strategized. There are set schedules for potential contractors to meet with specific companies. These matches are determined and scheduled ahead of time to maximize efficiency. A bell signaling the start and stop of each face-to-face interview is utilized to keep all participants right on track.

Pros and Cons

Competition in the business world is fierce in this economy, and these matchmaking events are filled with pros and cons. One of the major benefits involves meeting face-to-face and a chance to make a good first impression. These events provide an opportunity for buyers and contractors to develop better relationships from the start. They also save a great deal of money and energy for small business owners who do not have time or resources to conduct a multitude of onsite meetings. On the other hand, some of the most talented and promising small business owners across the nation attend such events. Getting adequate recognition and attention to make the trip worthwhile is challenging.

As the economy continues to fluctuate, so will business practices. Rather than spend time searching job postings in newspaper or online, networking events for buyers and contractors are a great investment of time and energy. This is a new business trend that will only grow more lucrative with time.

When the heat is firing, it’s difficult to maintain a working environment that is comfortable and cool for all. The summer months often encourage employees to lighten up and loosen up when it comes to their professional dress. While comfort is critical in the workplace, it’s also important to maintain a certain image, regardless of what the thermometer says.

Developing a summer dress code that works for your professional standards and your employees’ personal tastes is a difficult balancing act. As the temperature rises, revisit your dress code policies and issue employees a reminder with some of the following tips:

• Safety first. If your workplace is one that may present safety hazards with certain summer clothing items, then these must be addressed. Open toed shoes are popular, yet hazardous in certain working environments. Flip-flops can be distracting and look unprofessional in an office type of setting. Cuts, scrapes and burns can be prevented if employees avoid wearing shorts and sleeveless shirts. Consider the hazards and potential hazards in your workplace when it comes to a dress code that is safe.

• Undergarments should always be under. Undergarments should not be visible at any time or under any circumstances. Bra straps in particular are culprits in the summer. Obviously this is an issue that might fall into the laps of managers in the organization when someone is in violation.

• Send the right message. Remind employees that apparel bearing certain messages or product images are not appropriate in the workplace. Controversial wardrobe pieces might include shirts advertising drinks, clubs or those with “witty” sayings that customers or coworkers might find offensive.

• BE CONSISTENT. Be consistent and firm with all aspects of the dress code. Don’t let some employees get away with dress code violations while penalizing others. This can result in a lawsuit, especially where gender discrimination might come into play.

Above all, remind your employees that you want them to be cool and comfortable, yet they must maintain the proper image for the good of the company. Their wellbeing and safety at work is your number one priority, therefore, a summer dress code that works will take an investment from every member of the organization.

No matter how big or small your business is, it is possible that a swine flu crisis could have an impact on it. In the event that the swine flu becomes a regional, national, or global issue, you need to make some special considerations for keeping your business up and running in the face of adversity. From your computer systems to employee responsibilities and human resources issues, there are several steps you can take to fortify your business to face a swine flu outbreak.

Protect Business Systems

From an IT perspective, an outbreak of swine flu may have a negative impact on your business if employees are not able to access their work files from home. Explore the possibility of adopting an infrastructure system that allows employees to access data securely at any time. Advancements in telecommunications have made developing a great corporate network fast, easy and affordable.

Cross-Train Employees

Many small businesses rely on the skills and knowledge of key employees to manage critical business functions. These functions might include payroll, placing orders for supplies, or scheduling employees. In the event that key employees are impacted by the swine flu or any other crisis situation, it is important to have a backup plan. Start cross-training your employees to perform critical functions so that no one critical step is reliant upon any one individual. This will protect your business from falling apart if employees or their families are directly impacted by a crisis situation.

Update Emergency Contact Information

Make sure that your human resource staff continually updates the emergency contact information for all employees. This is important in the event of any medical emergency that could take place onsite, and for notifying employees or family members of critical information. It might be wise to archive at least two emergency contacts for each employee, just in case the first one cannot be reached during a crisis.

It’s never too early to start developing a detailed crisis management plan for your business. These three steps will position your business to manage a swine flu outbreak – or any other crisis – in an efficient manner.

It seems like just about everybody has Twitter these days. The President of the United States, Puff Daddy, Larry King, and Howard Stern top the list of the nation’s most renowned Twitterers, just to name a few. Average Joes are also signing up to Twitter in droves. Now all it takes to author original content on the internet is a few spare minutes and the click of a button.

Despite its user-friendly appeal and the magnitude of the audience, is Twitter right for you? Ask yourself the following questions when determining whether to jump on the bandwagon or let this fad pass you by.

Do Others in my Social or Professional Circle Twitter?

Twitter is a great way to make and maintain new professional and social connections. Whether you are interested in collecting stamps or if you are a defense attorney, the odds are that you will find others with similar interests or professional goals on Twitter.

What Are My Twitter Intentions?

There are many different reasons why people join Twitter. Some do it as a leisure activity while others look at it as a means of making professional gains, developing a readership, or generating business. Determine what your Twitter intentions are before setting up a site. If you are Twittering for leisure, it won’t require as much of an investment. If your reasons are more professional in nature, you may want to take time to think about things like themes, quantity of posts, quality of posts, etc.

Do I Have Time to Twitter?

Some people’s Twitter sites are only viewed by friends and family members, but if your goals include generating an interest from a broad range of readers or customers, it is important that you have time to invest in your Twitter site. A Twitter site that remains dormant is tacky and unappealing to modern web users. Today’s web user wants to see a profile that is updated regularly with compelling content and blog posts. If you don’t have time to update Twitter more than once a week, chances are that your site will not gain much popularity.

There is no questioning the power of this social networking tool. It is indeed a force to be reckoned with. People who have already jumped on the Twitter bandwagon will attest to its entertainment value. Many have also discovered a unique outlet to voice opinions and share information with others. Still other small businesses have cemented their client relations by sharing an inside view into the company. However, whether or not Twitter is right for you is a decision you will have to weigh using the questions above.

As a small business owner, it is important to have a trustworthy and dedicated staff working for you. However, how can you determine a potential candidate’s trustworthiness? One emerging trend suggests that conducting background checks is a good way to screen potential candidates for employment.

There are several important factors to consider when determining whether or not you should run background checks on potential employees.

Bad Apples

People make bad choices. They also learn from their mistakes and have the capacity to change. If you choose to conduct background checks on potential employees, be aware of charges or criminal activity that occurred when the potential employee was still on the brink of youth. One instance of a minor in possession of alcohol at age 19 does not indicate that a candidate is incapable of becoming a valued contributor in your organization. Multiple substance abuse charges, however, might be an indication of a bad apple.

Weighing the Cost

Depending on the depth and breadth of analysis, a typical background check might cost you $30-$50 per employee. This adds up if you have a moderate sized staff, or if you need to screen and hire several people at the same time.

However, consider the cost to your organization if you unknowingly hire an individual with a background that includes several counts of shoplifting. If that employee works for a period of three months before they are caught stealing from the company, the total amount in merchandise that your company has the potential to lose is far greater than $30-$50.

Discretion

Your perception of a potential employee with an impressive academic background, resume and excellent references may take new shape following a background check. If an individual seems to be the ideal candidate, barring certain discrepancies in the background check, it is important to exercise discretion.

Do not be afraid to ask the employee to provide further details regarding the information gathered from the background check. An articulate and responsible candidate should be able to explain the situation(s) in detail while simultaneously expressing an appropriate emotion (remorse, a lesson learned, etc.).

Background checks can be valuable tools, but the ink on the paper cannot tell someone’s personal story. Don’t be afraid to ask questions and probe further while searching for the ideal employee.

Everywhere you look, there is a new eco-friendly product or initiative. Green recycling containers are popping up on every street corner, and some city busses are now powered by electricity. There are even eco-friendly soaps and organic t-shirts.

The responsible thing to do is to join the green trend and start looking for ways to turn your office into an eco-friendly environment. Here are three eco-friendly ideas that will get you and your staff moving toward a cleaner, greener workplace.

Eco-Friendly Suppliers

If you want your organization to be more eco-friendly, start by making partnerships with eco-friendly suppliers. This means using eco-friendly paper products, office supplies, and even switching to eco-friendly organic fabrics for employee uniforms. These products are easy to find today, and they are priced affordably so that you can transform your office into a more eco-friendly environment.

Go Paperless

Many organizations have found ways to eliminate paper processing with online billing and other types of electronic forms. These are relatively easy to develop with the help of an IT professional. Microsoft Word also provides a variety of templates that may be useful for your small business. There are even copy machines that can create a .pdf file and email documents to a designated address.

With the word paperless, we mean no Post-It Notes, memos, or “while you were out” messages. Email is a great tool, and you should encourage your employees to use it. Rather than leaving a note on someone’s desk, send an email.

Telecommuting

Do you have staff members who are dedicated, driven, and require little to no supervision? These high-performing employees may be prime candidate for telecommuting. Allowing employees to work from home on certain days of the week will cut down on the expenditure of fuel. Research also shows that employees are 30% more productive when they work at home. There are fewer distractions and less interruptions at home than in the office. You can reward your high-performing staff with work at home privileges while simultaneously helping to reduce the carbon footprint of your staff.

These are just a few of many simple steps that you can take to make your working environment more eco-friendly. Going green isn’t just a fad or a trend; it is the responsible thing to do.

When running a small business, there is no escaping from the fact that you will face angry clients at some point or another.

Knowing how to handle angry clients can ensure that the harm done to you and your business is limited to a minimum. It will also help ensure that your day is not spoiled by the words or actions of an angry client.

Below are some tips to help you in handling angry clients in your business.

Apologize

Whether you like it or not, the client is always king – so in order to take the steam out of the client’s anger, the first thing that you should do is to apologize and promise to look into the matter.

Do not answer back in an angry tone without understanding the situation first, since it might only egg the client on to launch an angrier tirade against you or your employees.

By apologizing to your client, you will be sending the message that you are ready to collaborate with your client, hear out the problem, and take corrective action.

Do Not Take It Personally

Often, a small issue may be blown out of proportion because the client is too worked up and not thinking clearly.

Other times it could be because they are unloading anger that has been generated somewhere else. Your employees also could have contributed to or generated the anger by neglecting the client in some way.

You should understand that this anger is not personally directed towards you. The customer might be simply protesting the system that your business follows.

Diffuse Volatile Situations

Do not aggravate the situation further, instead try to diffuse it as soon as possible. Hear and understand the reason that the customer is upset and then take the appropriate steps.

If the customer is angry with a particular employee, then come up with an excuse to send the employee outside or into another section of your office or store. Then, either handle the customer yourself, or direct an experienced employee to handle the situation.

Make Amends If You Are At Fault

If it is your fault that a customer is angry, then try to make amends in any way you can. You can offer a special discount on the product that they are buying, or you can include freebies with their purchase.

Make sure that you explain to the customer that you would like to make up for your mistake. Once your client feels that you have accepted your mistake and are ready to act on it, then they will probably be more forgiving.

Learn From Your Experience

You should learn from every angry customer interaction, so that in future you can learn to identify the signs correctly before eruptions take place. By doing this, you can successfully defuse situations before they get out of hand.