01.04.08

Expect to Pay More

Posted in Uncategorized at 8:31 pm by Diana Heeb Bivona

Many HR experts predicting trends for 2008 expect to see salaries for talented workers shoot up as demand outstrips the current supply.  For a small business owner needing to hire additional help, but operating on a limited budget, this may prove troubling.

To ensure you will “get what you pay for”, take your time and do not settle simply because you are in need of filling the position.  Also, consider:

  1. Providing detailed descriptions/expectations for each “help wanted” ad;
  2. Listing your job postings in as many sources (newspaper, internet, unemployment/employment agencies, etc.) as either affordable or relevant;
  3. Thoroughly interviewing a wide selection of qualified job candidates;
  4. Conducting pre-employment testing when applicable; and
  5. ALWAYS running background/reference checks. 

11.15.07

Employee Training

Posted in Uncategorized at 2:05 pm by Diana Heeb Bivona

Do you find it difficult as an employer to get your employees to attend training sessions?  Struggling with low attendance or constant grumbling by what your workers view as “a waste of time”.  If you are, then take comfort in the knowledge that you are not alone.  So what can you do?  Create a training program that takes into the consideration the diversity of your work staff while still adding value to your organization.  Consider:

  • Allowing employees to lead training sessions – generates excitement from within the ranks.
  • Diversify training. Design new and creative training options for employees, so they are not provided with the “same old thing.”
  • Survey. Ask employees for their opinions on training. This is also one way to generate new ideas that can strengthen your current training program.

11.14.07

Asking the right interview questions

Posted in Uncategorized at 11:11 am by Diana Heeb Bivona

There’s a right way to do something and the wrong way to do something.  Unfortunately, sometimes doing something the wrong way can end up costing you big time.  This is definitely true when it comes to interviewing potential candidates for a job.  Violate federal law in terms of asking questions that may be considered discriminatory and find yourself on the receiving end of a lawsuit.

Ira S Wolfe with Success Performance Solutions provides some assistance in the interview process:

Interviewers should ask themselves two questions before interviewing a job applicant:

1) Is the question relevant to the particular job for which the candidate is applying? Should interview questions be used to prove discrimination against you in court, the EEOC will evaluate the merit of the charges based on “business necessity.”  But just because it is a business necessity, it might not be legal. And even if it is legal, it might not be deemed a business necessity.  Asking questions that aren’t legal or aren’t necessary or appropriate could get you into a whole heap of trouble.

2) Am I asking all applicants for this job the same questions? If you need to ask a

candidate a question about race or religion, for example, out of “business necessity,” make sure you ask those questions to anyone else who applies for that particular position.

Which job interview questions are illegal?  Here are a few examples of illegal job interview questions.  

Topic: Race/Color

Wrong:  What is the color of your skin?

Right:  ?

Topic: Religion

Wrong:  What religion are you? Do you believe in God? How often do you attend worship services? What are your religious denomination and/or affiliations?

Right: ?

Topic: Nationality/Language

Wrong: You’ve got a strong accent; did you just cross the Mexican border? Where were you/your parents born? What’s your citizenship status? What’s your maiden name? What’s your first language? How did you learn to speak ____?

Right: ?

Topic: Age

Wrong: How old are you? Are you planning to retire?
Right: ?

Topic: Sex

Wrong: What’s your marital status? Are you pregnant? Do you plan on having a family anytime soon? How many kids do you have? What are your childcare arrangements?

Right: ?

Topic: Affiliations

Wrong: List all the clubs and social organizations to which you belong.

Right: ?

Topic: Personal

Wrong: How tall are you? How much do you weigh? Why do you wear your hair like that? What kind of music do you listen to?

Right: ?

Topic: Disabilities

Wrong: Do you have a particular disability? How severe is it? Do you have any diseases? Fill out this medical history for you and your family.

Right: ?

10.10.07

Planning Your Own PR

Posted in Uncategorized at 12:23 pm by Diana Heeb Bivona

You want to drum up a little free publicity for your small business, but aren’t exactly sure where to start?  Or, maybe you are concerned that you don’t have the budget to get the job done.  Would you be surprised to learn that it is relatively easy  to start-up a PR campaign at little or no cost?

That’s what publicist and nationally published author Deanne Schulz says.  She suggests you start by asking yourself a few questions, such as: 

  1. Who are you?
    Sometimes it’s hard to draft a simple and powerful message.  If asked, could you tell someone if 15 seconds  what you did in a language they’d understand? 
  2. What is your hook?
    This is what sets you apart from the competition. What makes your company special? What do you bring to the table? How will someone benefit from your goods and services? What is the point of difference between your product and all the others out there? 
  3. Who are you trying to reach?
    You need to know as much as you can about your target audience – the individuals who will use your goods or services. 
  4. How will you reach your target audience?
    Press Releases to journalists, phone calls to media organizations, customized emails to decision-makers, how-to articles, radio interviews, and guest blogging are just a few of the free ways to pitch yourself as an expert and generate your own publicity.
  5. When should you reach out?
    Is your business seasonal? Can you tie with charitable events? Specific holidays? How about current news stories?

10.09.07

Should I File Quarterly Estimated Taxes?

Posted in Uncategorized at 11:33 am by Diana Heeb Bivona

As a small business owner, it is sometimes difficult to determine if you should be filing quarterly estimated taxes.  The answer is “it depends”.  Much will depend on  your family’s total tax position.  Yes, I said family.  For most sole proprietors, its not just about your business income, but all income.

If you have enough earnings from your business, you may have to make quarterly estimated tax payments.  However, if your family has enough withholding from other jobs to cover your tax liability, then you may not have to make quarterly payments.

Your estimated taxes should reflect your family’s total expected tax liability.  That tax liability will depend on:

  • amount of family income
  • itemized deductions
  • number of children
  • amount of business expenses

For more information on this subject, read IRS Publication 505, Tax Withholding and Estimated Tax available at the IRS website.

10.06.07

When Clients Go Bankrupt

Posted in Uncategorized at 2:59 pm by Diana Heeb Bivona

Sometimes, we are faced with the difficult situation of dealing with a client who enters bankruptcy while owing us money.  If its a small amount, we tend to take it on the chin and write it off.  However if a large sum of money is involved, what can you do to collect? 

When a client files bankruptcy, you must stop all collection efforts.  If you don’t you potentially violate the court’s automatic stay on debt collection and could find yourself in court trying to explain what you were doing. 

You can go through the court to try and collect once they have filed bankruptcy.  Be warned though, the process is costly so it’s not for those who are owed a small sum of money.

Consult with an attorney to see if you should pursue the matter.  If they suggest you should, you would take the following actions:

  1. File a Proof of Claim – this tells the court that you have either a secured or unsecured interest in the outcome of the bankruptcy.
  2. Sue the debtor inside the bankruptcy.
  3. Ask the court for a Lift of Stay – this allows continuance of a lawsuit filed against the debtor before the bankruptcy was filed.  Permission is often granted.
  4. Join in a creditors’ meeting.
  5. Join other unsecured creditors – this may effective reduce your attorney fees and provide you with a larger voice than if you acted alone.

At the first sign of potential bankruptcy, it is important to gather all your client records.  Keep documents in hard copy and save them for at least two years.  Even though most bankruptcy threats are just that, once you believe its a possibility, seek out legal advice immediately.

08.23.07

Using Independent Contractors

Posted in Uncategorized at 3:30 pm by Diana Heeb Bivona

For small businesses, Independent Contractors (ICs) can prove to be a vital resource.  You receive expertise in a particular area at a set contracted fee without the worries of  dealing with employees issues and such things as overtime, sick time, payroll taxes, etc.  When the job is done, you both move on.Uncle Sam is always interested in businesses that use ICs.  Generally, you should not encounter any problems in terms of tax related issues IF you follow applicable IRS guidelines related to ICs.  Also remember:

  • You can control the work product standard, but not the way in which the work is done. The IC controls the when, where, or how to work.
  • Always try to have a written contract clearly outlining that you have an IC relationship.
  • Try to have the IC work off-premises, using their own resources and tools. 
  • Make sure you have a meeting of the minds with your IC in the sense that they understand they are an IC and not an employee.  Maintain that relationship even if you decide to utilize their services for more than one project.

08.17.07

Targeting Sole Proprietorships

Posted in Uncategorized at 10:56 am by Diana Heeb Bivona

Many businesses start out as sole proprietorships, and that’s not necessarily a bad thing depending on their individual circumstances.  However, converting to a corporate or LLC business structure does have its benefits.  One of those primary benefits is taxes. 

 Now, Uncle Sam appears to nead a little more cash because they’ve been eyeing sole proprietorships lately.  According to a recent GAO (Government Accounting Office) announcement it suggests that the IRS will start paying closer attention to the tax returns of sole proprietors as  a way to raise a little cash.

What does it mean for sole proprietors?  If you choose to continue operating as a sole proprietor, then be sure to keep detailed business records and do not co-mingle your person and business assets. Otherwise, Uncle Sam may come knockin’ on your door for a loan. 

08.14.07

Avoiding Age Discrimination

Posted in Uncategorized at 9:02 pm by Diana Heeb Bivona

According to U.S. Census Bureau statistics, by 2010, 37.2 percent of the population will fall into the 45-84 age group. By 2020 it will rise to 39 percent.  What’s the significance to businesses?  One major significance is that employers will find themselves dealing with a larger class of workers age 40 and older who are protected under the Age Discrimination in Employment Act.

In fiscal 2006, the Equal Employment Opportunity Commission received 16,548 charges of age discrimination, resolved 14,146 charges and recovered $51.5 million in monetary benefits, not including monetary benefits obtained through litigation.

One specific U.S. Court of Appeals case drew the attention of many.  In D’Cunha v. Genovese/Eckerd, an older job applicant qualified for a pharmacist position in a phone screening but was later rejected in favor of a younger candidate after the face-to-face interview. The employer, Eckerd was unable to demonstrate a nondiscriminatory reason for rejecting the older candidate.

The message for employers:  start thinking about the age spread in various job positions throughout your company.  Furthermore, make sure you pay the same attention to age as you do to race and gender in your hiring process.

08.08.07

Phone it in

Posted in Uncategorized at 7:47 pm by Diana Heeb Bivona

Feedback from your customers allows you to make informed decision for your business.  It is also an important component of market research.  While there are a variety of ways to gather information from your customers, nothing beats the old-fashion way of simply picking up the phone and calling them.

At this point, probably more than one person reading this is cringing at the idea.  A hound of hungry telemarketers calling at bedtime probably flashed through your mind and your heart started beating a little faster.  Banish the thought!

It’s important to remember that we aren’t talking about selling your products or services over the phone.  These people are your customers and have valuable insights that you want to tap. 

Telephone interviewing is one of the most cost-effective and fastest ways to get answers to your questions.  In most cases, they are nonintrusive and easy to set up.

When setting up a telephone interview campaign, follow these general guidelines:

  1. Know who you are calling (i.e. your target audience).
  2. Create a questionnaire and conduct a few mock interviews.
  3. Make the calls at convenient times for your audience. 
  4. Keep it brief and to the point. 
  5. Reasurre the caller you are not selling them anything.  You just want information.

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