Wearing the boss hat is not easy, and many small business owners have a tough time adjusting to the role. Rather than focusing on selling their product or service, much time is spent searching for and interviewing potential staffers, dealing with current employee work issues, and sifting through all the tough human resources issues, such as personality conflicts and even layoffs.

So what is an entrepreneur to do when employees are involved with the business? Here are some tips to help you with the role of “boss.”

Put the Right People in the Right Job

You’ll get the best results from your staff if you hire the right staff. Hire the most qualified candidate, but also the one who fits with your company’s style. If you are not absolutely sure about hiring someone out of a batch of candidates, don’t feel you have to choose. Take the time to obtain another round of resumes in order to fill your staff positions with 100% confidence.

Include Your Team

One important strategy to help your staff feel connected to the company is to include them as much as possible. Tell them your strategies for business success. Share the positive (or negative) financial results of last quarter. It also means including everyone in a celebratory party for a big company success. Employees who feel connected are more productive.

Coach and Lead

Many entrepreneurs don’t realize that when they become bosses, they aren’t just leaders, but they are coaches as well. That means encouraging your employees, teaching them about their job, and providing the tools they need to advance their own career, as well as your business.

Hire an HR Manager

Sometimes the duties of managing employees simply become too great for a single business owner to handle. If that happens, it is time to hire a person who can be in charge of most employee matters. That frees up considerable time for you as the business owner. Don’t hesitate to delegate the roll of boss to an HR manager if you feel overwhelmed. In addition, you enjoy the perk of a human resources manager who is versed with employment law and ensuring that you are hiring, managing, and even firing the right way.

Meals

The IRS allows meals to be expended if they serve a business purpose. For instance, if you take a client out to lunch and discuss points of a contract, the meal counts as an entertainment expense. But what if you and the client discussed the contract in your office then went out to lunch? That’s acceptable as well. You can still qualify the meal as an entertainment discussion since there was direct business occurring directly before or afterward.

Other Entertainment

Can you take a client out on the golf course? Of course. Although the cost of the greens fees is allowed as an entertainment expense, the full price of your country club dues is not. The same holds true with sporting events. Your season subscription is off limits, but you can take a client out to a game, as long as business is discussed during, before, or after the event.

How Much Can You Deduct?

Keep in mind that your entertainment expenses are only 50% deductible. For your $500 meal, only $250 will be eligible as a small business tax deduction, and the same goes with other entertainment receipts.

Many small business owners ask about including other staff employees, spouses, and even spouses of the client. Employees are absolutely eligible to be included with the entertainment deduction, as long as they are associated with the business at hand with the client. Your friends or spouses are not eligible to be included with the total receipts. Spouses of the client are treated the same.

But what if you sponsor a large banquet where you, your staff, staff spouses, and clients and their spouses engage in a big meal? This might be an acceptable situation, but you should always check with a tax professional for full rules on this type of situation.

Entertainment is expected in business transactions. Be sure you get the full tax deduction coming to you, but avoid the temptation to deduct more than you are eligible.

New Study: Surveys Increase Sales

The numbers from RatePoint, a leading provider of customer feedback for online businesses, show that you should. Customer reviews, opinions, feedback, and suggestions can greatly improve your online sales. Why? The survey conducted by RatePoint show that online customers are more likely to buy products online when they read previous customer feedback.

43 percent of businesses surveyed noted that they experienced more sales as a result of posting feedback and product reviews. 28 percent showed more online traffic to their website. In other research published by Deloitte and Touche, 82 percent of customers who shop online say their purchasing decisions are influenced by customer reviews.

Even Negative Feedback can be Beneficial

In addition, feedback doesn’t necessarily need to be positive. Many small business owners with an online store fear that negative feedback may result in turning customers away or discouraging sales. However, the data from the survey showed that any review is six times more likely to affect the business in a positive way. The fact is that customers put more trust in a business that allows and displays customer opinions.

One thing that many small businesses owners don’t realize is the power and potential for improvement. Customer feedback lets a business owner know what is right and what is wrong with a product. Using this valuable information a small business owner can continually develop products to meet customer needs.

Ideas for Obtaining Feedback

And what better way to serve your customer needs than to ask them directly? There are many ways you can obtain customer feedback. One is including a product review section on each product web page for customers to share their thoughts. You could also ask for customer feedback with every completed purchase. And don’t forget to ask customers for testimonials, and create a webpage strictly to include great testimonial statements.

Your website should be treated like any other marketing tool. With continual review of results and improvement, you can use customer surveys and opinions to help your business make more online sales.

Post Helpful Blogs and Articles

Part of your optimization process includes updating your business website frequently. Search engines like websites that provide up-to-date information for their users.

With that in mind, use your website to post a regular blog. Write helpful articles that are useful to your readers. Be sure to include specific keywords in each blog or article that will help search engines recognize and categorize your website. Keywords should include local information as well. For instance, if you operate a restaurant in Kirkland, Washington, near Seattle, you might include “Kirkland dining” as well as “Seattle restaurants” in your keyword list.

Use Meta Tags

Meta tags are html coding that is unseen by website visitors, but can be very helpful to search engines. Meta tags allow website creators a way to show search engines important keywords that can help you attract local customers. Use important meta tags such as “keywords” and “description” and include your local keywords in them, such as your city, neighborhood, and even your street name.

Utilize Pay Per Click and Pay Per Call

You can also attract new business with “pay per” advertising. Pay per click or pay per call marketing puts your business link or phone number at the top or beside search results. You set up an account with major search engines like Google and Yahoo! Then, when the specific keywords you bid on are searched, your small ad appears. Web searchers who are looking for your products can then click on a link to your website to get more information, or call you directly.

Pay per advertising is great for businesses like restaurants and gift retail stores. Research shows that people with iPhones and other mobile network devices are performing more and more searches and need your business – now! Make sure you give them a reason to call and get to your business right away.

Use these tips, and research other ideas you can use to improve your search results. Your local customers want to find your business. All you have to do is let them know you’re waiting for them.

Here are three important rules you should know about franchising your business:

1. Choose a Strong Business That Fits a Proven Franchising Model

Franchising is not new. Franchising models and paradigms have existed for decades. The trick to succeeding as a franchisor is to choose a business that is in a proven franchised industry.

For instance, internet businesses are relatively new to the business world. Although internet business have proven to be successful and are expected to continue growing, they have yet to prove themselves as good franchising opportunities. Why buy someone else’s internet business structure when you can simply create your own from proven models?

Good franchising industries that provide good opportunities to franchisors and new entrepreneurs are the following types of business:

• Fast food
• Restaurants
• Specialty food
• Specialty retail products
• Health and fitness products
• Lodging
• Auto products
• Cleaning and maintenance products

2. Make Your Business Easily Clone-able

If your business is in the right industry, it could be a good franchise candidate. If you want to successfully franchise your business, it must have a model that is easily re-produced by franchise buyers.

Your franchise business must have a manual that others can understand and be able to follow explicitly. For instance, if you are selling cupcake franchises, your franchisees must be able to make the exact same cupcake from your recipes.

3. Good Communication with Franchisees

Remember, it is YOUR business name and business model that is on the line. Make sure that those who buy your franchise are operating by the book. Keep in good contact by sending regular correspondence. Maybe even drop in for “spot checks.” Operating by your business name is a license and a privilege. Be sure that those who use your business model are doing it right.

Although many companies are paring down their ordinarily over-the-top parties in favor of simpler ones, it is still possible to throw a great party that will be enjoyed and remembered by your employees for years to come. It is important to remember that most employees will appreciate the gesture more than the affair. Paring down the expenses will often go unnoticed, but your kind deeds will not!

• Instead of hosting your event at a restaurant, consider catering a lunch at the office. An office is often a more informal get-together, as it allows employees to interact in a more comfortable atmosphere. In fact, many employees will enjoy an informal luncheon or dinner much more than a stuffy restaurant.

• If a catered affair isn’t in the budget, consider a potluck dinner. Potluck dinners are making a comeback as more and more people find themselves in tight financial situations. Many employees will relish in bringing in and sharing their favorite dish, and there is sure to be plenty of delicious entrees to go around!

• Consider hosting a party at your house. It will give you a chance to mingle with your employees on a more personal, unassuming level. It will also show your employees your commitment to them and your gratitude for their service.

• Instead of a professional band or DJ at your company party, consider using an iPod and dancing to your favorite tunes. Ahead of time, you can ask your employees for a list of their favorite songs to make the event personalized for everyone.

• To save on restaurant or catering costs, consider having your holiday party on a weeknight or during the day instead of the evening. Often times, catering halls and restaurants will offer reduced prices if you have your function during an off-peak time and day.

• Shorten the duration of your holiday party, and you’ll find that your bar tab will be considerably less.

• Make it a family affair and keep the menu simple and the kids entertained with fun music and games. A simplified menu of cold cuts and chicken fingers will save your budget, and your employees and their families will be grateful for hosting a family-friendly affair!

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.

• 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.

Expiring Tax Benefits for Small Businesses

Here are some highlights regarding the terms, conditions and deadlines associated with the special tax refund:

• Small businesses that recorded losses in the year 2008 are eligible to apply for the special tax break. The tax break allows businesses who lost money to claim expenses back as far as 2003 (traditionally, one could claim expenses only back to 2006). This five-year window means that a larger refund may be issued.
• Eligible businesses that are owned by individuals must apply for the tax refund by October 15th, 2009. Eligible businesses that are set up as calendar-year corporations must apply by September 15th, 2009.
• Filling out certain forms can help business owners accelerate the refund process. Form 1045 is an application for tentative refund that will speed up the process for individual filers. Form 1139 is the corporate equivalent.
• Refunds for this special tax break will typically be issued within 45 business days.

Time is of the Essence

Time is running out for small business owners to take advantage of this special tax break. This is an excellent way for small business owners to get much-needed cash into their hands with no interest and no strings attached. There is still adequate time remaining to submit the necessary paperwork to qualify for this tax break. Small business owners will need to act quickly in order to process the necessary documents.

Additional details and more specific guidelines regarding the American Recovery and Reinvestment Act of 2009 and the special refund claim deadline is available at these websites:

• http://www.gpo.gov/fdsys/pkg/PLAW-111publ5/content-detail.html
• http://www.recovery.gov/
• http://www.irs.gov

Small business owners should pay special attention to the approaching deadlines of September 15th, 2009 and October 15th, 2009 in order to make the most out of the special tax refund.

1. Slashing the marketing budget. Marketing is a costly endeavor, regardless of the mediums are used. Many business owners see making cuts to the marketing budget as the best way to save money. However, the only way to generate a solid revenue stream is if customers know who you are, where you are and what you have to offer. This is accomplished through marketing, and therefore marketing is something that your business should not cut. Some businesses have actually increased their marketing budget to try and counter the effects of the recession. One good way to refine your marketing techniques is to use feedback mechanisms to see what works and what doesn’t. This can be as simple as a quick online survey of customers or asking walk-in buyers where they learned about your business. This will allow you to focus your marketing monies on strategies that actually translate into results.

2. Refusing to accept credit cards. There was a time when cold hard cash or personal checks were the standard in business. Those days are long gone, and people are now using credit and debit cards as staples in their lives. Some business owners believe that refusing to accept credit cards is a quick way to save on costs. Processing fees for credit cards may take a percentage out of your operating budget; however, your sales will most certainly drop if you stop accepting them. You may lose sales all together or find that each sale’s value has been reduced. The loss is not worth the savings in processing fees in the long run.

3. Cutting prices. The prices you charge for products or services are essentially the life blood of your business. When times are tough, business owners may be attempted to slash prices in order to attract more customers. This is a move that can have a negative impact in the long run. Instead of cutting prices across the boards, look for ways to give customers additional value, such as package deals, weekly specials, coupons and incentive programs.

In these tough economic times, it’s important to exercise caution when trying to tighten the belt. Avoid these three cost cutting mistakes and look for other creative ways to save on overhead.