Holiday Party Tips to Protect Your Small Business
It’s not even Thanksgiving and my holiday decorations are up. I love the holidays. It’s such a festive time. It’s also a perfect time to show your team how much you appreciate them by hosting a holiday party. However, we all know stories about those company parties that have gotten out of control — such as Sally from accounting dancing with a punch bowl on her head. But what you might not know is that type of behavior could result in serious consequences for your business. As an employer, you can be held liable for actions that occur during or as the result of your company-sponsored social event – particularly if alcohol is being served. It’s a concept known as social host liability, and it is recognized by many courts across the country. While each state’s laws differ, there are some general guidelines you can follow to make sure your holiday festivities are fun, safe and don’t land you in court. Make sure employees understand attendance at the company-sponsored event is purely voluntary. Eliminate any perception that work is being conducted. Plan your menu carefully so as there aren’t a lot of salty foods. When people are thirsty, they naturally drink more. Don’t provide a self-serve bar for guests. Either serve your guests their drinks or hire a professional bartender who can recognize when someone has had enough. Opt for a cash bar instead of an open bar. Or limit the number of free drinks for each guest. Consider hosting your holiday party in the afternoon instead of the evening. People tend to drink less during the day. Arrange for designated drivers and/or provide alternative transportation. Don’t let someone talk you into driving home when they have had a few too many. Make sure there are plenty of non-alcoholic beverages available for your guests. Close the bar about an hour prior to the end of the party. As an alternative, provide a coffee and desert bar. Don’t consume alcohol yourself during the event. It is important for you to keep a clear head so you can make prudent judgments. As a business owner, remember, even though it’s a party, it is still business related. You should manage it with the same propriety you manage your business every day. It is possible to host a fun holiday event, without exposing your business to potential costly...
read moreAll in the Family: Running a Small Business Together.
Mom and pop shops are a big part of our American culture. It’s the picture many of us conjure up when we visualize main street America– very Normal Rockwell. But today technology has dramatically changed the small business landscape to the point where you might think the family-owned business — the corner grocery store so to speak — has disappeared. Well, think again. Every year, thousands of entrepreneurs either start-up a business with a family member or bring a family member into their business. That’s particularly true in today’s economy. And most entrepreneurs are ill-equipped to deal with the delicate dynamics that arise when the lines between their personal and business life collide. While there are some family-owned companies that survive and prosper, it’s more common to find internal strife. So if you are thinking about going into business with a close relative here are some pointers to protect the business and your personal relationship. Establish expectations. From day one you should define roles and responsibilities for each family member. A lack of clarity fuels conflict and can lead to disaster. Each person should have a job description just as any employee would, and they should understand what the boundaries are in the work environment. Put it in writing. Even if you are going into business with your dear beloved mother, get everything in writing. Remember, this is business. People have short memories and a disagreement about ownership interests, money allocations or even vacation time can cause tempers to flare. Create a conflict resolution plan. Despite your best efforts there are bound to be conflicts in the business. Because personal emotions will ultimately be involved determine in advance a way to resolve disagreements. You need a process to work through conflicts to protect the integrity of the work environment as well as your relationship. Keep personal baggage at home. Don’t bring personal battles into the workplace. It’s unprofessional and can damage customer and client relationships who don’t want to be caught in the middle. Manage Even-handedly. As you add other employees to your business, make sure you manage equitably. Family members shouldn’t enjoy perks and privileges other team members don’t receive. And the same is true when it comes to rewarding performance. Every team member should be evaluated and treated fairly. Approximately one-third of the Fortune 500 companies are family-owned businesses. Think Wal-Mart, Dillards and Ford. Think big and manage wisely — perhaps you could be the next big...
read moreRetailers Aren’t Spooked About This Year’s Halloween Sales.
The state of the small business economy might be a bit ghoulish this season, but not when it comes to Halloween sales. Consumers are spending in a big way on Halloween costumes. According to the National Retail Federation’s Halloween Consumer Spending Survey more than two-thirds (67.4%) of celebrants will buy Halloween costumes for the holiday. That’s the most in the survey’s 11-year history. The average person will spend $77.52 this Halloween, compared to $75.03 last year. Total spending on Halloween this year will reach $7.4 billion. In addition to spending on adult and children’s costumes, four-legged family members won’t be forgotten. The NRF says Americans will spend about $350 million on costumes for their furry friends. “As one of the fastest-growing consumer holidays, Halloween has retailers of all shapes and sizes preparing their stores and websites for the busy fall shopping season,” said NRF President and CEO Matthew Shay. “There’s no question that the variety of adult, child and even pet costumes now available has driven the demand and popularity of Halloween among consumers of all ages. And, with the holiday falling on a Friday this year, we fully expect there will be a record number of consumers taking to the streets, visiting haunted houses and throwing unforgettable celebrations.” Even if you’re not a retailer selling Halloween goodies, you can still get in on the fun. Ask your customers to post pictures of their costumes on your company’s Facebook page then have your followers vote for their favorite. Select a winner or winners and give them a special prize. Contests are a smart way to create buzz for your brand and to get your customers engaged with your company on social media. Feel free to share you small business Halloween pictures with us. Trick or treat. ...
read moreTechnology at the Center of the Freelance Revolution
My parents were in business for themselves and they wanted nothing more than for me to go to college, get a good job with a big company, and work there until I retired with a gold watch and a nice pension. While I tried to live the life they envisioned for me, two forces came into play. First, the business paradigm changed and people weren’t staying with one company for their entire career. In fact, the U.S. Bureau of Labor Statics as of 2010 found the average time an American worker will stay at any job has plummeted to less than four and a half years. Secondly, I must have inherited their entrepreneurial gene, because while I enjoyed significant success in the corporate world, I’ve been happiest when I’ve been my own boss. Today, while it’s difficult to count the actual number of independent workers in the U.S., according to the Freelancer’s Union, there are approximately 42 million freelancers making up 1/3 of the U.S. workforce. A report released by Intuit in 2010 predicted by 2020 independent workers will comprise 40 percent of the workforce — 60 million people. So what’s behind the freelance movement? Some believe it’s the result of the lack of jobs created by the Great Recession. But consider this: Freelancer’s Union recently released its “How to Live the Freelance Life” report in which nearly 9 out of 10 independent workers reported they would keep freelancing even if they were offered a full-time job. In my opinion, it’s technology that is fueling the growth of the freelance market for several reasons. First, it’s much easier to go solo today than it was back in the 80s when I bailed from the corporate world for the first time. Back then it was cool if you had a fax machine to expedite documents to your clients. Today, you can seamlessly work from anywhere in the world. “Over the past five years people began realizing the power of technology. What it does is give them the freedom to set up a business, leverage their skills and abilities and be profitable with very little overhead,” explains Terri Lonier, PhD, Executive Director, Coleman Entrepreneurship Center, Clinical Professor of Management, DePaul University and author of “Working Solo.” In addition to the ease of entry, technology enhances a freelancers opportunity for success by opening up markets around the globe. I work with several freelancers in various parts of the country who I have never met face-to-face. When I originally posted my projects for bid on one of the freelance job sites, I received proposals from freelancers in dozens of countries. No longer are you limited by the boundaries of your own community and who you know. The world is your oyster as they say. Technology allows independent works to collaborate with other freelancers so you don’t have to go it alone if you don’t want to. You can stay small, but look big. Virtual teams give freelancers the option to go after larger projects and opportunities. “You can be one person and use the Hollywood Model. When Steven Spielberg does a movie he goes out and finds the best people who are all independent and he brings them together for a project,” Dr. Lonier adds. Technology has even changed where freelancers work. Instead...
read moreA ‘Heads-Up’ Dashboard Works in Business Too: Watch Key Indicators
Sophisticated fighter jets—and now even some expensive automobiles—offer a “heads up” dashboard display. It enables pilots and drivers to look out the windshield and still see all their crucial gauges. In the same way, you should have a dashboard of key performance indicators (KPIs) that you can see while you’re in the trenches running your business everyday. Well, almost everyday, and that brings us to our first important point: Don’t wait for quarterly reports. Your KPI dashboard should be available to you at least on a monthly basis and in many cases weekly or biweekly would be even better. You might benefit from seeing some KPIs on a daily basis. With the accounting and inventory control software available today, this should be possible. If you only see these figures on a quarterly basis, you’ll always be navigating by squinting into your rear-view mirror. Businesses come in a startling variety of “flavors” today: service, retail, business-to-business, online, mail order, direct sales, brick-and-mortar, hybrid, etc. There is a wide array of KPIs, therefore, that should be closely watched. I’m going to suggest a few here that cut across most businesses. You may think of others. But before I list mine, I want to share one more important truth: If you can’t measure it, you can’t control it. This is one of the foundational principles of quality assurance and it applies to business in general. Be sure you can accurately generate all the important metrics required to understand where your business stands. Without that information, or with incorrect information, you will make bad decisions. Now let’s list some KPIs to help you measure, control and improve your growth: * Lifetime value. LTV. You need to know how much your customer is worth to your business. This is going to help you with various decisions you’ll need to make. Customer retention and customer attrition. How long are you keeping your customers? Always take at least two “snap shots” of this figure, at 30 days and at 90 days. When customers seemingly fall out at 30 days, how often do they come back within 90 days? * Customer acquisition cost. How much does it cost your business to get a new customer? Compare it to LTV. If your acquisition cost is near to or greater than your LTV, you need to go back to the drawing board. Also, what’s your “customer retention cost”? What works to maintain customer loyalty? * Sales or revenue by category, product or service. Here’s one you need to monitor as closely as possible in real time. Understanding what is selling and what isn’t allows you to better control inventory, find opportunities to bump up prices and know when it’s time to have a “fire sale.” * Your growth versus your industry’s growth. Are you on par, lagging or leading your competitors in growth? You might be happy with 3 percent yearly growth. But if everyone else is doing 5 percent, you’re going to have a hard time selling your business when the day comes. Plus, it may be a good indication that something in awry in your company. As you’re keeping track of earnings before interest, taxes, depreciation and amortization, keep your head up, eyes open and watch these KPIs too. What are some of the KPIs you watch...
read more