04.30.07
Posted in Uncategorized at 4:23 pm by Diana Heeb Bivona
The Eighth Annual Transamerica Retirement Survey has found that small businesses continue to operate at a disadvantage when it comes to retirement savings compared to their larger counterparts. When compared to employees at large companies, small business employees are less likely to have access to a 401(k) or employee-funded retirement plan, and are less active than their large company counterparts in saving for a comfortable retirement. The problem for small business employees is that this translates to lower household retirement savings and a greater number who expect to rely on Social Security as their primary form of income in retirement.
The report cites access to retirement plans as a major reason for the gap. Only 65% of small business employees report being offered an employee-funded retirement plan, compared to 84% of employees at large companies. Meanwhile, 20% of small business employees reported not receiving any form of retirement benefit from their employer.
On the flip side, small business employees are also dropping the ball. When offered a plan, small business employees are less likely than employees of large companies to participate or have money invested in the company’s plan, while also contributing a slightly lower percentage of their salary. Moreover, small business employees are also less likely to be saving outside of work. Of those small business employees that aren’t currently participating, 31% don’t plan to in the future.
Unfortunately, it does not look as though things will get better anytime soon. Nearly 73% of small businesses that don’t currently offer a retirement plan indicated through the survey that they weren’t likely to in the near future. The four most common reasons given by employers for not likely offering a plan in the next two years were:
- Company is not big enough - 43%
- Lack of management - 41%
- Employee interest - 34%
- Cost concerns - 34%
Permalink
04.27.07
Posted in Uncategorized at 2:32 pm by Diana Heeb Bivona
Like many small business owners, I’m a sole-proprietor. Add to that fact that I’m a mom with two small kids and active in my community, and you have one very busy individual who prides herself on having great time management skills. Sure, like everyone else I occasionally have those instances when things fall through the cracks, but I often amaze even myself, colleagues, and friends in what I can accomplish in a day.
Having said this, it doesn’t mean that there isn’t always room for improvement. Recently, I checked out Dan Kennedy’s book “No B.S. Time Management for Entrepreneurs” from our local library. I got to tell you that I really like his suggestions. Sure, a few may seem a little strict, but even if you select a couple of tips and implement them, you’ll find that your time can be even better managed.
Here are a few from his book that I particular like:
- Don’t jump when the phone rings. While you may be tempted to pick up the phone every time it rings, you may want to rethink that approach. Every time you answer the phone, you are pulling time away from another project and interrupting your train of thought. Most calls, even those for prospective clients can wait at least a half a day.
- Cut back on the face time. In-person meetings can take up a lot of your time. Not only does the actual meeting take time, but driving there and back also takes up time that could be used more productively. When possible, schedule meetings back to back or opt for a conference call.
- Make a list. When I was younger, I use to pride myself on being able to remember everything. However, as my business took off and the kids came along, my ability to keep it all straight started to evade me. So, now I’ve developed a system of keeping track of my projects and deadlines. There’s also something satisfying about being able to scratch things off your list when their accomplished.
- Block your time. Chances are that you can be more productive if you actual designate time each day for specific activities and stick to that schedule. For example, you may set one hour aside each day for marketing, two for project development, one for returning calls and emails, etc. Estimate how much time it takes you to get something done, block out that time, and stick to your schedule. You’ll be amazed at how much more you actually get done.
No matter how we try, we will never get everything done in a day that we would like. But chances are you’ll feel a lot better at the end of the day when you know you’ve used your time as best as you could.
Permalink
04.26.07
Posted in Uncategorized at 2:59 pm by Diana Heeb Bivona
Wells Fargo will be offering a small business webcast called Protecting Your Business on May 1st. The interactive webcast will feature leading industry experts who will offer relevant and practical advice for small business owners on protecting the physical and virtual assets of their businesses.
The Protecting Your Business webcast will focus on insurance, online security and legal advice. Small business owners will receive tips from leading industry experts on securing their physical assets including property and virtual assets such as customer data.
To register for this free, live event or to access an archived version of the webcast, visit: http://www.wellsfargo.com/biz/webcast.
Permalink
04.25.07
Posted in Uncategorized at 3:40 pm by Diana Heeb Bivona
For many businesses, finding qualified and skilled employees is an ongoing concern. Today, if companies intend to keep their edge and compete in this fast-pace and ever changing global economy, they will need a workforce that can directly respond to the challenge. Unfortunately, there are more and more signs that our work force is terribly lacking in the most basic of rudimentary skills.
According to The Literacy Company and Evelyn Wood Reading Dynamics:
- More than 20 percent of adults read at or below the fifth grad level; this is well below what they need to earn a living wage.
- More than 75 percent of those on welfare are illiterate.
- More than 1 million children drop out of school every year.
- About 50 percent of America’s unemployed youths are functionally illiterate, meaning they can’t carry out simple tasks like balancing a checkbook or reading drug levels.
- Forty-four million American adults are poor readers or “functionally illiterate.”
- Twenty-one million American adults can’t read at all; one-fifth of high school graduates can’t read their diplomas.
- One-third of high school graduates never read another book for the rest of their lives.
- Forty-two percent of college graduates never read another book.
After reading these statistics, I was left with several questions. If we can’t seem to master one of the most basic skills necessary, how can we expect to effectively remain a market leader? Do businesses have any role or responsibility in building the qualified and skilled work force they so desperately need?
Permalink
04.24.07
Posted in Uncategorized at 6:52 pm by Diana Heeb Bivona
Any employer, or employee for that matter, will tell you that the cost of health insurance continues to climb. In 2007, health care costs were projected to rise 8%. While the rate of increase has slowed, employers across the country continue to look for ways to reduce health insurance costs before they either have to make long-term commitments to health care programs or eliminate health care benefits altogether.
One option being explored is the idea of co-insurance. Co-insurance splits the cost of health services between the employer and the employee and replaces co-pays for doctor visits, prescription drugs and other services. The idea is that by not paying a fixed dollar amount, employees will know how much their health care costs and because they would be paying a percentage of the total, they will be more motivated to find lower-cost providers.
Here are just a few of the advantages and disadvantages to considering co-insurance:
Possible Advantages
- Encourages the consumer to be more informed.
- Patients get cost and quality report cards on providers. Consumers will take charge of their healthcare; and unnecessary use should diminish.
- Prompts competition among providers on price and quality. Providers will compete for consumer-choice health plan consumers who have tools to compare transparent prices and evaluate provider quality scorecards.
Possible Disadvantages
- A leap of faith from traditional health care models. The concept of consumers taking charge of their healthcare is foreign to many employers and employees.
- Consumers may avoid getting necessary care if cost is a concern.
- The consumer-choice health plan competes against traditional plan options which more consumers feel comfortable with because they are more familiar with them. Gaining acceptance may be an uphill battle in the beginning.
Permalink
04.23.07
Posted in Uncategorized at 2:42 pm by Diana Heeb Bivona
Money is often tight, particularly for entrepreneurs and small businesses just starting out. Having to watch every dollar and account for each expense is a must if you want to make it through those early lean years. However, no matter how careful we often are we seem to have instances where we find ourselves mispending our money. What do I mean? Well, we may order too much inventory, pay higher finances fees than we should, fail to bill clients on a regular basis, or maybe we just stick with certain suppliers even when they aren’t the most competitive.
There are however several things we can do reduce those unnecessary spending mistakes and keep more dollars for productive uses. First and foremost, we can develop an annual business and marketing plan. By knowing what you want to do in the upcoming year, you can better plan your expenses. You can also:
- Bill your customers on a regular basis
- Effectively manage your credit so that you know how much you are being charged in interest each month. Make a spreadsheet and track it so that you can become familiar with what you are paying.
- Pay your bills on time to establish a history of good credit. You can then secure better interest rates when you do borrow.
- If you carry an inventory, consider switching to a “just in time” inventory management system.
- Shop around periodically to ensure that you are receiving the most competitive rates from suppliers.
It may not seem like rocket science (because its now), but you will be amazed at how much you can potentially save just by implementing these few simple steps.
Permalink
04.20.07
Posted in Uncategorized at 6:13 pm by Diana Heeb Bivona
A well-designed logo is not just an invaluable tool in your business marketing plan, but it can also go a long way in establishing brand recognition. It therefore is not that unusual for an individual or company to want to legally protect that logo from being used by others. To do so, you must register that logo as a trademark with the U.S. Patent and Trademark Office.
You are not required to register your logo and you do in fact have some rights based just on using the mark consistently throughout your business. However, owning a federal trademark registration gives you several advantages including:
- constructive notice to the public of the registrant’s claim of ownership of the mark;
- a legal presumption of the registrant’s ownership of the mark and the registrant’s exclusive right to use the mark nationwide on or in connection with the goods and/or services listed in the registration;
- the ability to bring an action concerning the mark in federal court;
- the use of the U.S registration as a basis to obtain registration in foreign countries; and
- the ability to file the U.S. registration with the U.S. Customs Service to prevent importation of infringing foreign goods.
To learn more about trademarking, read the “Basic Facts About Trademarks” produced by the U.S. Patent and Trademark Office.
Permalink
04.19.07
Posted in Uncategorized at 2:19 pm by Diana Heeb Bivona
Creating an online survey for your business can provide you with valuable information ranging from product/service feedback to new ideas and possible improvements that your customers would like to see. If you are on a limited budget, but would still like to try and create a online survey, consider SurveyMonkey.
SurveyMonkey is an online polling tool that offers its basic subscription for free. That basic subscription lets you create 10 questions and send out to 100 respondents. A reasonably-priced and flexible professional subscription is also available that allows up to 1,000 responses for a set monthly price. Responses are automatically collated and presented in an easy-to-read format.
If you decide to send out a survey keep these tips in mind:
- Tell participants why you’re doing this survey and what the benefit to them might be.
- Tell them up front how long it will take.
- Keep it short and sweet - their time is as important as yours.
Permalink
04.18.07
Posted in Uncategorized at 4:06 pm by Diana Heeb Bivona
As employers looking to fill a vacancy, we know we will typically have to review a ton of resumes prior to finding the right one. We are also aware that many candidates tend to embellish the truth or even tell the occassional white lie to make themselves look better on paper. Unfortunately, it looks like that trend toward lying on a resume may be growing.The employee screening firm, The Risk Advisory Group performed a study of more than 3,000 CVs submitted by candidates during 2004 in the financial sector. The study showed that 25% of those CVs contained false or incorrect statements. On average, that equated to three lies. In past years, it had tended to be only one misleading statement.
The omissions from CVs range from missing out information about a poor credit history, fraud, previous addresses, previous directorships, job titles, academic qualifications and details of employment dates and gaps in employment.
The take-away for employers is to beware and proceed cautiously, and always, always check those references.
Permalink
04.17.07
Posted in Uncategorized at 6:08 pm by Diana Heeb Bivona
For small business owners looking for a way to save for their retirement or to provide an option to their employees, SEPs provide one viable option worth exploring.
What is an SEP? It is a Simplified Employee Pension plan. This type of plan provides employers with a simplified method to make contributions toward their employees’ retirement and, if self-employed, their own retirement. Contributions are made directly to an Individual Retirement Account or Annuity (IRA) set up for each employee (a SEP-IRA).
How much can you contribute? According to IRS guidelines, annual contributions of an employer to an employee’s SEP-IRA cannot exceed the lesser of:
-
25% of compensation, or
-
$44,000 for 2006 ($45,000 for 2007 and subject to annual cost-of-living adjustments for later years).
The limits in the preceding sentence apply in the aggregate to contributions an employer makes for its employees to all defined contribution plans, which includes SEPs. Only up to $220,000 in 2006 ($225,000 in 2007 and subject to annual cost-of-living adjustments for later years) of an employee’s compensation may be considered. Contributions must be made in cash. Property cannot be contributed.
Any employer can establish a SEP and can maintain both a SEP and another retirement plan. A SEP can be set up for a year as late as the due date (including extensions) of the business’s income tax return for that year.
For more information, talk to your accountant or check out the IRS website.
Permalink
« Previous entries ·
