One of the biggest headaches that anyone is likely to suffer is the headache that's generated by government required paperwork. For a small businessman, this can be the filing of the W2 forms for employees and 1099 forms for the work that was contracted out.
The relief for these kinds of headaches won't come from the aspirin bottle. It comes from being organized, planning for the deadlines, and choosing the filing options that are right for your business. These options are filing by paper yourself, filing electronically, purchasing software to assist your filing, paying your bookkeeper to do it for you, subscribing to an online filing service, or contracting with a professional employer organization (PEO) with the experience to handle it.
Filing paper forms might be a good option if you are a hands-on owner and your business is very small in the personnel department. Schedule ample time for working on them and be sure the form that you use meets the specifications required. Filing electronically has the additional benefit of a later due date, no federal form requirements to worry about, and confirmation of your submission status, e.g. Received, Not Yet Processed, Complete.
Purchasing software to assist your filing can help contain costs; some formats are available for less than $50. Choose a program that is designed especially for your size of business, that is easy to install and use, and that is capable of generating 2-sided forms that meet the current specifications.
Paying your own in-house clerk may not be an alternative that is available to every small business, but if you already have a bookkeeper skilled in papyrocracy, ruling by paperwork, that is a good option.
Subscribing to an online filing service may cost a little more than DIY filing, but they will also have a help desk, off-site back-up of your filing for up to three years, and they will be up-to-date on changes and current regulations.
If none of these seem right for you, you probably need a PEO company that can relieve the headache by filing all your W-2 and 1099 forms for you.
Monday, March 29, 2010
Friday, March 26, 2010
Physical Exercise Is Good for Business
Reading stories of high achievers can be inspiring. Motivation can be contagious and you begin thinking, "Yeah, I can do that too!" At other times, the high achievers set the bar so high that it has the opposite effect. It's demoralizing.
The demoralizing effect nearly happened to me. I had watched the Olympics. I'd had my vicarious bobsled run. Now it was time to focus on work. I really wasn't in the mood to hear someone tell me that the way to get my business out of the doldrums was by training for a triathlon. It would be hard enough to train for one sport, and now I was being told that entrepreneurial success would come if I trained for three!
I'd have thrown in the towel then and there, but he was making good points about setting goals, strategic planning, measuring performance, planning for contingencies, and sizing up the competition. It was easy to see the parallels between being a triathlete and managing a company. His big selling points were stress reduction and enhanced concentration. What businessman couldn't benefit from a form of stress reduction that leaves him alert? Most pharmaceutical approaches can dull that winning edge, if not leave one downright comatose. I figured it was worth investigating further.
It turns out that exercise is a great stress reducer, and fortunately it doesn't necessitate mountain biking after an already vigorous swim. The basic principles for stress management can be adapted to nearly every personality type, work situation, and variety of exercise. For instance, if your job keeps you at a computer screen, strength building exercises will help reduce stress, but if you are on your feet and lifting all day long, you'll find greater benefits from stretching exercises. The brain starts releasing stress reducing endorphins after only 20 minutes of exercise, so even multitasking by taking Fido on a brisk dog walk can go a long way, literally and figuratively.
Other Advantages of De-stressing with Exercise
• Stress usually makes the heart speed up and the digestive system slow down. Exercise helps bring these back into balance.
• Repetitive movements and controlled breathing techniques have physiological effects that produce a sense of calm.
• Regular times of physical activity allow your muscles to work. Exercise releases built-up muscle tension and results in less muscle pain, fewer tension headaches, and reduction in joint pain.
• If you choose a performance-based sport as your exercise of choice, as the triathlete mentioned earlier did, then as your performance improves, your body adjusts to better handle higher levels of stress.
• Best of all, stress management through exercise has highly favorable side effects like improving sleep patterns and increasing general awareness.
The demoralizing effect nearly happened to me. I had watched the Olympics. I'd had my vicarious bobsled run. Now it was time to focus on work. I really wasn't in the mood to hear someone tell me that the way to get my business out of the doldrums was by training for a triathlon. It would be hard enough to train for one sport, and now I was being told that entrepreneurial success would come if I trained for three!
I'd have thrown in the towel then and there, but he was making good points about setting goals, strategic planning, measuring performance, planning for contingencies, and sizing up the competition. It was easy to see the parallels between being a triathlete and managing a company. His big selling points were stress reduction and enhanced concentration. What businessman couldn't benefit from a form of stress reduction that leaves him alert? Most pharmaceutical approaches can dull that winning edge, if not leave one downright comatose. I figured it was worth investigating further.
It turns out that exercise is a great stress reducer, and fortunately it doesn't necessitate mountain biking after an already vigorous swim. The basic principles for stress management can be adapted to nearly every personality type, work situation, and variety of exercise. For instance, if your job keeps you at a computer screen, strength building exercises will help reduce stress, but if you are on your feet and lifting all day long, you'll find greater benefits from stretching exercises. The brain starts releasing stress reducing endorphins after only 20 minutes of exercise, so even multitasking by taking Fido on a brisk dog walk can go a long way, literally and figuratively.
Other Advantages of De-stressing with Exercise
• Stress usually makes the heart speed up and the digestive system slow down. Exercise helps bring these back into balance.
• Repetitive movements and controlled breathing techniques have physiological effects that produce a sense of calm.
• Regular times of physical activity allow your muscles to work. Exercise releases built-up muscle tension and results in less muscle pain, fewer tension headaches, and reduction in joint pain.
• If you choose a performance-based sport as your exercise of choice, as the triathlete mentioned earlier did, then as your performance improves, your body adjusts to better handle higher levels of stress.
• Best of all, stress management through exercise has highly favorable side effects like improving sleep patterns and increasing general awareness.
Tuesday, March 23, 2010
Six Advantages of Hiring Now
In an economy that's so unpredictable that even Nostradamus might consider scuttling into retirement, there are still several indications that now is the time for a small business owner to hire new employees.
Rhonda Abrams, small business columnist for USA Today, takes the point of view that to experience meaningful growth, you'll have to hire. Surprisingly, at least at first thought, she writes, "more than half of the Fortune 500 companies actually started in a recession or depression." When that statement is analyzed more closely, some of the logic becomes more apparent.
• Competition is weaker. As other struggling businesses start dropping out and cutting back, their loss can be your advantage if you can seize the opportunities that open up in the wake of less competition.
• Customers are looking for less expensive alternatives. Many folks who were locked in to buying brand names from the big guys a few years ago are looking for cost-effective substitutes. If small businesses can supply that, they have a built-in edge that was spawned as a direct result of the recession.
• Labor costs are lower. In some cases, they are substantially lower. Potential hires that might have turned up their nose at a lowered pay rate a couple of years ago are often happy to accept that wage in today's business climate.
• A recession produces a growing talent pool. With more people are looking for work, you have a wider selection of candidates for the job and this fact leads to two reasons to hire now.
1. With more talent available, you can select an employee that more precisely meets your current need instead of settling for hiring someone that is 'close, but trainable.' You will be able to realize some savings in training costs almost immediately.
2. You can afford to be pickier and choose an employee that best meets your own business philosophy. This will render greater benefits over time because better compatibility results in a less stressful and more efficient workplace.
• You will be better prepared to take advantage of a future growth spurt. Even if you can't justify hiring a full-time employee now, hiring part-time or contracting out some of your work will position you in a good place when the recovery cycle does come.
One final thought from Ms. Abrams: "Creating a good job is one of the most rewarding things you’ll ever do."
Rhonda Abrams, small business columnist for USA Today, takes the point of view that to experience meaningful growth, you'll have to hire. Surprisingly, at least at first thought, she writes, "more than half of the Fortune 500 companies actually started in a recession or depression." When that statement is analyzed more closely, some of the logic becomes more apparent.
• Competition is weaker. As other struggling businesses start dropping out and cutting back, their loss can be your advantage if you can seize the opportunities that open up in the wake of less competition.
• Customers are looking for less expensive alternatives. Many folks who were locked in to buying brand names from the big guys a few years ago are looking for cost-effective substitutes. If small businesses can supply that, they have a built-in edge that was spawned as a direct result of the recession.
• Labor costs are lower. In some cases, they are substantially lower. Potential hires that might have turned up their nose at a lowered pay rate a couple of years ago are often happy to accept that wage in today's business climate.
• A recession produces a growing talent pool. With more people are looking for work, you have a wider selection of candidates for the job and this fact leads to two reasons to hire now.
1. With more talent available, you can select an employee that more precisely meets your current need instead of settling for hiring someone that is 'close, but trainable.' You will be able to realize some savings in training costs almost immediately.
2. You can afford to be pickier and choose an employee that best meets your own business philosophy. This will render greater benefits over time because better compatibility results in a less stressful and more efficient workplace.
• You will be better prepared to take advantage of a future growth spurt. Even if you can't justify hiring a full-time employee now, hiring part-time or contracting out some of your work will position you in a good place when the recovery cycle does come.
One final thought from Ms. Abrams: "Creating a good job is one of the most rewarding things you’ll ever do."
Monday, March 15, 2010
A Social Media Bill of Rights—and Wrongs
"Congress shall make no law… abridging the freedom of speech, or of the press," so says our Bill of Rights. But what about employers? Should a boss be able to regulate an employee's blog or his posts on a social networking site? How can a company balance the importance of sharing ideas through open exchange with the dangers of having an employee saying something stupid? Maybe it is time for your company to have a Social Media Bill of Rights and Wrongs.
A survey of how several companies have chosen to handle their employees' use of social media indicated that the policies that are most effective are the ones that combine having trust in and putting responsibly on the employees. This strategy works because no good employee is going to want to see their company tank and leave them without a job. Good employees are discerning enough to not intentionally bad-mouth their employer, so a social media strategy needs to focus on things that can help prevent inadvertent harmful posts.
Here is a compendium of ideas your company may wish to consider when outlining a social media policy:
• Employees ought to follow existing laws. This would include respect for copyrights, no plagiarized posts, no obscene language, slander, or libelous statements.
• Employees should put a disclaimer in their profiles that clearly states that the opinions expressed are their own views and not necessarily those of the company.
• Time spent on social media should not interfere with other job-related tasks and commitments.
• Employees should post as if their boss will read it—and bosses ought to be encouraged to spot check their employees' posts. This will cut two ways—obviously it will reduce insulting and disparaging statements, but it should also help keep excessive flattery and sycophantic remarks in check.
• Employees should respect the privacy of clients and customers. Do not discuss them in posts without their permission.
• The employer needs clear communication with the employees about what constitutes confidential and proprietary information. Employees who have not been privy to managerial meetings may not have the big picture or know where the boundaries lie unless their bosses have taken the time to teach this.
• Encourage the Golden Rule of treating others the way you want to be treated.
A survey of how several companies have chosen to handle their employees' use of social media indicated that the policies that are most effective are the ones that combine having trust in and putting responsibly on the employees. This strategy works because no good employee is going to want to see their company tank and leave them without a job. Good employees are discerning enough to not intentionally bad-mouth their employer, so a social media strategy needs to focus on things that can help prevent inadvertent harmful posts.
Here is a compendium of ideas your company may wish to consider when outlining a social media policy:
• Employees ought to follow existing laws. This would include respect for copyrights, no plagiarized posts, no obscene language, slander, or libelous statements.
• Employees should put a disclaimer in their profiles that clearly states that the opinions expressed are their own views and not necessarily those of the company.
• Time spent on social media should not interfere with other job-related tasks and commitments.
• Employees should post as if their boss will read it—and bosses ought to be encouraged to spot check their employees' posts. This will cut two ways—obviously it will reduce insulting and disparaging statements, but it should also help keep excessive flattery and sycophantic remarks in check.
• Employees should respect the privacy of clients and customers. Do not discuss them in posts without their permission.
• The employer needs clear communication with the employees about what constitutes confidential and proprietary information. Employees who have not been privy to managerial meetings may not have the big picture or know where the boundaries lie unless their bosses have taken the time to teach this.
• Encourage the Golden Rule of treating others the way you want to be treated.
Wednesday, March 10, 2010
Is your Résumé Action-Ready?
A résumé ought to be a living document, not a dusty one. If you have done something noteworthy in your job in the past three months, it is time to update your résumé—and if you haven't done something noteworthy in your job in the past three months, it is time to look for more challenging work, in which case it is also time to update your résumé.
According to research done for Robert Half International, 45% of workers haven't updated in the past year and 20% haven't updated in more than two years. If a new job opportunity did pop up, they would not be able to respond quickly.
Résumé Tune-Up
Spell-Check!
A revved up résumé ought to hold an employer spellbound, not leave him dumbfounded by the spelling. Poor spelling makes an employer skiddish skittish about how conscious conscientious you really are.
Use Bullet Points to Hit the Target.
• key words geared to profession
• action verbs, active voice
• quantify accomplishments, show numbers
• skills and strengths
Customization Specials
Now that most résumés are stored as word processor documents or portable document files rather than professionally printed on vellum, your main résumé file can be easily customized and framed so that it emphasizes the skills and training that apply to the job at hand. Keep master lists of things that you have done, and then pick out the four or five that best suit the specific job that you are applying for.
Go Social
Social networking is probably the oldest job-hunting skill around, but incorporating it in a résumé is relatively new. Use it, but with discretion. John Hill, Michigan State University’s director of alumni career services says, "LinkedIn is like the corporate office. Twitter is like the water cooler, and Facebook is like the bar."
According to research done for Robert Half International, 45% of workers haven't updated in the past year and 20% haven't updated in more than two years. If a new job opportunity did pop up, they would not be able to respond quickly.
Résumé Tune-Up
Spell-Check!
A revved up résumé ought to hold an employer spellbound, not leave him dumbfounded by the spelling. Poor spelling makes an employer skiddish skittish about how conscious conscientious you really are.
Use Bullet Points to Hit the Target.
• key words geared to profession
• action verbs, active voice
• quantify accomplishments, show numbers
• skills and strengths
Customization Specials
Now that most résumés are stored as word processor documents or portable document files rather than professionally printed on vellum, your main résumé file can be easily customized and framed so that it emphasizes the skills and training that apply to the job at hand. Keep master lists of things that you have done, and then pick out the four or five that best suit the specific job that you are applying for.
Go Social
Social networking is probably the oldest job-hunting skill around, but incorporating it in a résumé is relatively new. Use it, but with discretion. John Hill, Michigan State University’s director of alumni career services says, "LinkedIn is like the corporate office. Twitter is like the water cooler, and Facebook is like the bar."
Wednesday, March 3, 2010
Hiring Commissioned Salespeople? Don’t Use a Scientific Selection Process
I ran across an interesting post from a fellow blogger the other day. He plaintively described the dreadful failure rate of newly-hired commissioned salespeople. Over three-quarters of his new hires were tanking in the first three months. Obviously, he felt the need to reassess his interview technique.
He concluded that he'd been interviewing as if his company had the greater risk, and therefore he hedged his bets to reduce risk to the company—it had not worked. Trying a new paradigm, he structured the interview as though all the risk was on the candidate. It makes sense. When a commissioned salesperson flunks at his job, he doesn't get paid.
To put his revelation into practice, he began talking to the sales candidates like he would talk to a partner. His newly formatted interview included discussion of the company's development, industry trends, success and failure rates, and similar matters. He then evaluated the candidates' strengths and pitfalls as if looking for a partner.
What was the outcome? He called it "significantly more effective" than the scientific process they'd been using.
Equally interesting were the views in the comment section that followed. The consensus agreed that commissioned salesperson interviews are some of the toughest, and they added other insights as well.
The business partner approach works because most good salesmen don't like bosses. They want to be their own boss, so interviewing in a manner that brings out traits of self-sufficiency helps in the selection process. One commentator went so far as to suggest that the real sales manager of any good salesperson is their "significant other." He likes to have a portion of the hiring process include an interview with the family unit to get them on board.
Several posters lamented that all the great salesmen seem to already be out selling, but that excuse seems like the whine of the dateless college coed complaining that all the great guys are already married. Several comments said having clearly defined expectations helps, and that reality holds in continuing this analogy—the girl doesn't know what kind of man she wants, all she knows is that she wants a date. Is it little wonder that hiring commissioned salespeople with that attitude has results similar to dating services?
The original blogger was struggling to find his balance of art and science in the hiring process. It is a battle we all face.
He concluded that he'd been interviewing as if his company had the greater risk, and therefore he hedged his bets to reduce risk to the company—it had not worked. Trying a new paradigm, he structured the interview as though all the risk was on the candidate. It makes sense. When a commissioned salesperson flunks at his job, he doesn't get paid.
To put his revelation into practice, he began talking to the sales candidates like he would talk to a partner. His newly formatted interview included discussion of the company's development, industry trends, success and failure rates, and similar matters. He then evaluated the candidates' strengths and pitfalls as if looking for a partner.
What was the outcome? He called it "significantly more effective" than the scientific process they'd been using.
Equally interesting were the views in the comment section that followed. The consensus agreed that commissioned salesperson interviews are some of the toughest, and they added other insights as well.
The business partner approach works because most good salesmen don't like bosses. They want to be their own boss, so interviewing in a manner that brings out traits of self-sufficiency helps in the selection process. One commentator went so far as to suggest that the real sales manager of any good salesperson is their "significant other." He likes to have a portion of the hiring process include an interview with the family unit to get them on board.
Several posters lamented that all the great salesmen seem to already be out selling, but that excuse seems like the whine of the dateless college coed complaining that all the great guys are already married. Several comments said having clearly defined expectations helps, and that reality holds in continuing this analogy—the girl doesn't know what kind of man she wants, all she knows is that she wants a date. Is it little wonder that hiring commissioned salespeople with that attitude has results similar to dating services?
The original blogger was struggling to find his balance of art and science in the hiring process. It is a battle we all face.
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