Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts

Tuesday, August 03, 2010

If You Can't Find A Job, Try Creating One

Cheese!
It seems that everyone is trying to stretch a penny these days, and for small businesses that can lead to cutbacks or layoffs. Losing a job in a recession is a devastating thing, especially when jobs are scarce. Unemployment will only last for so long and the bills keep coming in. Statistics show that there are 6 unemployed people to every available job. In small towns it can be as many as 20 unemployed to each available position. So what is a person to do?


If you are one of those many Americans who are having trouble finding a job, how about creating your own? This isn’t a strange idea in the face of a recession. Micro-businesses are businesses that have 10 people or less and over half of small businesses in the United States are home based.  According to Startupnation, you can not only survive, but thrive in this economy.


Inc Magazine printed a story about CEO Paul Mann who was looking for a responsible dog sitter in a bind. After taking some observations of the people who responded to his ad, he felt a little discouraged in finding someone he could trust. That is when a light went on in Paul Mann’s head. He ended up leaving his corporate position for the comforts of working from home and started Fetch! Pet Care, a local network of pet sitters and dog walkers. If you asked him today if he would go back out into the world of glass doors and windows, his answer would be a very enthusiastic "no!"

The advantages of a home business include low over-head, tax deductions, shoe-string start up capabilities, and you can work in your pajamas. All you need is a phone line, high-speed internet, a place to keep records and a really great idea for a product or service that people need even if there is an economic downturn. While no one will tell you that starting a home business is easy, with a little research and a lot of hard work you might be able to give yourself a job.



Looking for a GeoVison Security Camera System to help secure your small or medium business? Call www.CameraSecurityNow.com today at 877-422-1907 for a free phone consultation. Ask about the new Hybrid DVR/NVR surveillance solutions.

Wednesday, March 24, 2010

So What Does Obama Care Mean for Small Business?

So What Does Obama Care Mean for Small Business


Be careful little hands what you do!

Congress last night enacted President Obama’s sweeping healthcare plan, but like many things congress didn’t consider all the details. The idea was to assist small business and individual Americans in purchasing healthcare, what it will end up doing is slow and reduce hiring in the future.

The president’s plan is number driven: business from x amount of employees to y amount of employees pay z much toward healthcare, or if they do not, they are fined w amount. This was a fair idea if American company’s personnel strategy was still to hire employees, but frankly, they missed the boat. Instead of hiring marginal employees, companies will either do without the marginal hire or use temps and/or contractors to do the job. Furthermore, with all of the job quota entanglements (and they still are out there), a business owner will have to consider if he or she is going to break a certain healthcare number threshold. Business owners are going to pay very close attention especially if they are near the 50 employee point and this creates a very discomforting scenario.

Suppose a business is at 49 employees and it needs to hire a transportation manager. Looking through the list of employees, there is the transportation secretary who has been a very good employee, but is a secretary. What should the business owner do? Well, the smart thing (but brutal thing) to do is fire/layoff/RIF the secretary and hire the transportation manger; addition by subtraction is going to be rampant! Who will get hurt? The people the president was most trying to help, average hard working Americans! Of course, the secretary might be advised that she can “contract” her old job back with xyz temporary service. What a crock! Of course, xyz temporary service will also have to consider the numbers game, but that leads to some brutal consequences as well. How long can you be a contractor/temp before you are automatically switched out (again to duck the numbers game)?

Also, just how hard is it to start a company as a separate legal entity? A business owner can start an LLC in about 2 days, and a small corporation, like a chapter S, does not take much longer. Remember each of these legal business entities are totally separate “persons.” Therefore the employee counter starts all over again. So too, cost center accounting has been around for years, and each department bills other departments for the work it does. For example, customer service bills sales for processing its orders. How hard would it be to create separate companies, each one under 10 or 25 employees?

Lastly, some companies are just not going to go through the aggravation of the numbers game, and will move some parts of their company off shore. More jobs lost for more Americans, I seem to be recalling which road that it is that’s paved with good intentions…



Looking for a GeoVison Security Camera System to help secure your small or medium business? Call www.CameraSecurityNow.com today at 877-422-1907 for a free phone consultation. Ask about the new Hybrid DVR/NVR surveillance solutions.

Tuesday, March 23, 2010

What Kind of Employee Are You?

What Kind of Employee Are You


Usually this blog has a viewpoint from an ownership perspective, but in the final analysis we all work for ourselves-no matter the deal we’ve cut with our employer. So, it’s good from time to time to evaluate just what kind of employee are you? There are certainly some very fine lines being drawn (even though HR managers and agency counselors tend to deny it). I think for myself I have narrowed it down to 5 types of employee, and only one of these types is desirable. The five types are: highly valued employee, temporary employee, contract employee, casual hire employee, and disposable (planned short time) employee. In these uncertain economic times, it’s good to figure out just where you stand.

The highly valued employee is someone who may have been recruited off campus or military. The company might have gone through an executive search firm and paid big money to bring this person into the business. These people are expected to provide leadership, management, and specialized skills. If recruited out of school they might have been offered top wages and the “fast track.” If this is not you, I must sadly ask you to read on. If this is you, terrific and congratulations!

The temporary employee has really only one advantage, they know that they are temporary. This gives a “temp” a lot of flexibility. Turn over for temps is extremely high and work quality is usually fair at best. (Yes, I know there are some temps that get in and do a superb job, but they are the exception to the rule-and this is becoming more prevalent). Agency Counselors have tried to improve the level of work by often stating or insinuating that this job is/could be temporary to permanent (temp to perm), but experienced temps have become very inquisitive about this situation. Before I started a new assignment I always went over this with the company when they asked if I had any questions. “Is it correct that this job could become permanent?” Boy, listen to the company back track! If they do, you should suspect that your counselor might be engaged in a little “puffery.” If however, the company lays out a plan for your hire (assuming all goes well both for yourself and the company-and it is budgeted), then you just might have a temp to perm position, if this is not the case, keep sending out your resume’ and doing interviews, (even during work time), because your life expectancy is short as a temp.

Contract employees generally fill a very specific niche in a company’s employment structure, and are generally contracted to do a certain job function for a certain length of time (the due date). Almost always these personnel contribute specific business expertise or knowledge. These people are generally treated fairly well (unlike temp’s who can really be treated poorly). Unlike temps, contractors generally do a very professional job, but most “have been around the block a few times.” Contractors will sometimes speed up or slow down a particular job to suit their own needs (I know, I did it-and I was not alone, in fact very far from being alone). This happens especially with a “soft due date.” On the other hand, there can be problems if a “hard due date” is assigned, and then it is extended since contract employees are always looking for their next contract position. Companies have had contractors leave right before a huge project is due!


The casual hire is a person that generally works for a company part time with limited benefits. They must not exceed a certain number of hours or be considered full time (and offered health care benefits and retirement plans). Since these employees are offered very little, turn over is very high. The goal of most casual hire employees is to find a full time job somewhere (else). From the company’s viewpoint, these employees can be added or subtracted as business dictates.

The most recent type of employee is the short time hire (or disposable employee). These people work directly for the company, but what they don’t know is that they have a limited shelf life. What the company gets is more loyalty and better work quality, but they pay more for it-briefly. This situation usually happens when a part of a company-say the credit /collection/AR department is moved from one part of the country or another. Millions of dollars of receivables are transferred to a different location, and more personnel are hired to handle the in flow of receivables. After this business is mastered (and it might take 18 months to 2 years), there wont be a need for so many A/R type people, so the company may (or may not) keep the best, and lay off the rest.

It’s good to know who and what you are to your company. Going back to the macro-view of this blog, America has lost some of its appeal around the world for producing the best quality and most innovative products at the lowest possible prices. President Obama has stated many times that it is his great desire to return this prestige to America. Well, Mr. President let me clue you in on one thing. America is never going return to prominence as long as we remain a nation of temps, contractors, casual, and short time hires.




Looking for a GeoVison Security Camera System to help secure your small or medium business? Call www.CameraSecurityNow.com today at 877-422-1907 for a free phone consultation. Ask about the new Hybrid DVR/NVR surveillance solutions.

Wednesday, March 10, 2010

How to improve your businesses commercial credit appeal

How to improve your businesses commercial credit appeal

So how can your business increase its credit appeal to other business from which you want trade credit terms? The best way is simply to make it easy for the Credit Manager or Credit Analyst to say yes. As was mentioned before paying your invoices on time is an important step, but there are other factors as well. Part of these relate to how important a particular supplier is to your business. Let me give an example:

Suppose you set up a small manufacturing business selling (you hope) the world famous “Whoitz.” In order to make the “Whoitz” you must have parts for it which mainly consist of the “Whatitz”, the “Wigget”, and the “Watchyamacallit.” Suppose a freight company who you contacted to ship your “Whoitz” wants to do investigate your credit. If all you list on your trade references are such businesses as office supply, quick printers, and the like-these are called weak references. They are not major or vital business partners and could be fairly easily changed if there was a problem. The person analyzing your credit wants to know how you pay your major suppliers-this is called the payment hierarchy and for your business, the suppliers of “Whatitz”, ” “Wigget,” and “Watchyamacallit” will stand first in the payment line because their products are vital. A company supplying paper and pencils will be at the end of the line and seasoned credit people know this. A perspective supplier will try to predict where his company will stand in the payment line, so when its time to pay bills, make sure your major suppliers, and other vital services like power and light, stand first in line. This makes financial sense.

You may also have a sheet of credit references prepared: printed, faxable, and E-mailable. As was mentioned in another article, you have already started building a business relationship with your major trade credit people and your business banker. Everything from a credit standpoint is in order and easily found, and in a professionally provided format. This makes your business appealing to a credit person, and makes it more likely that they will grant your credit terms request.



Looking for a GeoVison Security Camera System to help secure your small or medium business? Call www.CameraSecurityNow.com today at 877-422-1907 for a free phone consultation. Ask about the new Hybrid DVR/NVR surveillance solutions.