Can We Put ‘Affordable’ Into the Affordable Care Act?
Many of us are familiar with Rick Harrison from the hit reality TV show Pawn Stars and for years we’ve listened to him gripe about the amount of work he’s able to squeeze out of his son Corey and his employee ChumLee. But on his recent Fox & Friends visit, it was the Affordable Care Act that took his first salvo of criticism. “It’s really difficult to do business sometimes. Just for my little pawn shop the insurance for my employees went from $19,000 to $30,000. Last month,” Harrison explained. “I have 60-year-old women working for me who have to have pregnancy coverage now. I have some of the squarest ex-cops working for me who have to have drug rehab (coverage),” he added. It doesn’t take a rocket scientist or a Harvard MBA to look at those numbers and realize that they make expansion virtually impossible and workforce cutbacks almost inevitable. I’m reminded of a recent headline about Walmart cutting medical insurance coverage for employees working fewer than 30 hours per week. Earlier the retailer had cut coverage for employees working fewer than 20 hours. Rising rates, Smallbiz pain Rick Harrison and Walmart aren’t alone. The ACA seems to be causing a lot of pain for small business owners and individuals across the country. According to a Manhattan Institute study, the ACA increased the actual cost of health insurance by 41 percent in 2014 compared to 2013. Looking to 2015, early data show health insurance premium rate changes varying wildly from state to state. Rate drops of as much as 22 percent to rate increases as high as 35 percent have been reported. Being able to adequately predict costs from year to year is important for small business owners. When the economic climate swings so radically, they tend to entrench themselves and put off expansion and hiring plans until stability returns. When Federal Reserve Banks study local businesses, they are finding that the uncertainty is causing management to make major changes to their future plans. A survey in Dallas revealed that the ACA is prompting 25 percent of respondents to fire employees and nearly 17 percent say they have more part-time employees than full-timers due to the cost of required health insurance. Ask the candidates There are enough issues before the American public in the upcoming midterm election to make voters’ heads spin. But as you consider candidates’ positions on fighting ISIS and Ebola, don’t forget to ask how they stand on supporting small businesses. And if you’re at a town hall meeting, see if any of your candidates would support this modest proposal: Anytime a law doesn’t live up to the name politicians have given it, the law is automatically repealed. For example, if the Affordable Care Act doesn’t make healthcare affordable, it’s gone. I can dream, can’t I? Image: By Mike Salvucci (DSCN0507) [CC-BY-2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia...
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 moreBe More Than Just Ready For a Harsh Winter
Are you planning for a mild winter, or a long, cold and snowy one? Before we get into the details of what I want to share with you, I’d like to ask one more question: What do you think is the most important word in my first question? If you think it’s one of the words related to the kind of weather that might hit your community, I’m going to deduct one point from your score today. The important word is “planning.” As a small business owner, you should be considering how the weather will affect your business, whether it’s a fairly mild winter or another polar-vortex-driven deep freeze like last winter. This is true for a few reasons: A harsh winter can hurt many businesses, if they’re not prepared. A harsh winter can enhance some businesses, if they are prepared. A mild winter can be a boon for many business, if they are prepared. Let’s look at these points from two different angles: marketing and operational. Marketing Extended cold weather can help many small businesses. If the cold winter weather seems like it doesn’t want to end, ask yourself this question: Do I offer a product or service that will help people break the monotony of the cold, gray weather? If you do, work this into your marketing. I’ve read several accounts of gyms that made a killing last winter because folks were going stir crazy and needed an outlet for their energy. Of course, when we’re stuck inside during a long cold winter, we also tend to put on a few extra pounds. (Anyone out there sell nutritional diet products?) In the case of a mild, or delayed winter, those of you who own a business that relates to outdoor activities should work that theme into your promotions. Finally, if your business has nothing to do with the weather and we end up suffering through a long winter, consider a “Beat the winter blues with a blast of super hot sale prices” ad campaign, or something similar. Operational If the cold weather extends beyond what is expected in an average winter or the storms that blow through are much more intense than usual, there can be impacts on the operational side of your business. Just ask the folks in Atlanta who had an unexpected snow storm pass through their area last year. Many businesses should have contingency plans in place, especially if transportation is a factor for them. Do your employees know what to do during a winter weather emergency? If your business requires special winter supplies, such as sand or salt for deicing, be certain you have enough on hand. Take keeping your business “open as usual” as a challenge. Be the most dependable business in the neighborhood. Some businesses, such as grocery stores and pharmacies, can deliver to elderly customers who don’t want to brave the icy roads. Maintain superb customer service during challenging weather. It will set you apart. The most successful small businesses are those who anticipate change. We can’t always foresee the emergence of a “disruptive” technology, but we should be able to anticipate the changes in weather that come with with each of the seasons! Image: “Miniskirts in snow storm” by Unknown – wea00957, Historic NWS Collection. Licensed under Public domain...
read moreThe Workday is Short: Here’s How to Make the Most of It
When I’m on the road and talking to small business owners, one of the biggest problems they seem to face is a lack of time. Throughout history, the invention of time-saving devices usually ends up creating more work for us. When the time required to complete one task is shortened by a new invention, another task springs up to fill the void. Nature – and small business owners’ schedules – abhor a vacuum. However, this isn’t a hopeless situation. The key is to organize and concentrate your tasks so they can be completed efficiently. Fortunately, we have technology-based tools that can really help us out. Let me illustrate with some examples. Social media can control you, or you can control social media. I suggest the second approach. If your business is making good use of social media, set aside a block of time to get it all done at once. If you go back and forth all day, just pecking away at it each time, your social media program will prove to be a huge time waster. Apps bundle your tasks Free TweetDeck lets you compose and schedule tweets as well as take other actions within Twitter. Hootsuite, also free, lets you easily compose and schedule posts to most of your social media accounts. Further, for a reasonable fee, TweetAdder can automate Twitter “thank you” messages and retweets, and make a variety of other tasks easier as well. These apps allow you to concentrate your social media work into one solid block of your day. Many of them also allow you to take care of social media tasks in places where you might otherwise be unproductive. (Like waiting in line to get the new iPhone?) Now, there is one more thing you need to do to make sure you’re investing your time wisely: Be sure your efforts are truly focused. Let me make two true statements: First: Business tasks deserve your complete attention. Second: You deserve some breaks throughout the workday. The tricky part is to work out the balance between these two truths and a system that allows you to fulfill each. A real tomato Consider a Pomodoro timer. The Pomodoro technique is basically 25 minutes of uninterrupted concentration on a task followed by a five-minute break. Every fourth Pomodoro period is followed by a 15-minute break. The name, by the way, is the Italian word for tomato, from the old, tomato-shaped kitchen timers. The Pomodoro period is uninterrupted. If you get interrupted, you need to start over with the timer. The idea is to get your work flow maximized through unbroken focus. There are free and inexpensive web based timers as well as smartphone apps. Let’s compare investing our money with investing our time. If you collect your loose change each day and then put it all into a savings account, you wouldn’t toss random slugs in with the quarters, would you? It’s the same with our time. Keep it pure and focused on important tasks. And when it’s time for a break, enjoy it. Image: “Il pomodoro” by Original uploader was Erato at it.wikinews – Transferred from it.wikinews; transferred to Commons by User:Fale using CommonsHelper. Licensed under Creative Commons Attribution-Share Alike 3.0 via Wikimedia...
read moreWhat You Can Learn From a Bread Stick
Olive Garden has been in the news a lot recently. The chain offered a $100 “pasta pass” to 1,000 customers that allows pass holders to chow down on unlimited pasta for seven weeks. That marketing ploy got a lot of coverage in the press, but more important to the restaurant in the long run is the fact that a disgruntled group of investors replaced its entire board of directors. They were so critical, they even called out Olive Garden for its bread sticks! The times, they are a-changin’ One of the biggest problems the chain is facing is that it hasn’t kept up with the times. While all-you-can-eat bread sticks may have been the hook that pulled Baby Boomers in for a meal of pseudo-authentic Italian food, it’s not working so well for the Millennials. The lesson comes too late for the ousted directors, but you still have time to move. Is your product or service positioned to appeal to a younger generation of consumers or businesses? A CPA I know was once employed by a division of The Yellow Pages. He went from having more work than he could handle, to a trickle, to losing his job over about five years. His employer moved too slowly. The market is constantly moving. Yesterday’s successful business strategy will almost certainly need to be adjusted – if not this year, very soon thereafter. Learn a lesson from the bread stick and take a critical look at what you’re doing. And if you count yourself among an older generation, bring in a trusted younger associate to give you an assessment. Ask yourself these two critical questions: Will my product or service meet the expectations and desires of the next generation of consumers or managers? Is the way I’m marketing my business on target with the next generation of consumers or managers? Time for a youth movement? A “no” answer to either of those questions means it’s time to do some serious retooling in your business. Also, take a look at your staff. Is it time to bring in some younger employees? Perhaps you can make contact with a nearby college or university and plug your business into an internship program. Sometimes the most valuable part of working with an intern is the exit interview when you, as a small business owner, can get an honest appraisal of your business from the perspective of your next generation of customers or clients. Whether retirement and a sale is in the foreseeable future, or you plan to someday pass along your business to your children, you must continue to grow its value, and that means keeping up with a changing market. Otherwise you’ll eventually find yourself left holding little more than a stale bread stick, figuratively speaking. Image: Bread Sticks, © 2007 Charles Haynes, used under a Creative Commons Attribution-ShareAlike...
read moreLocal Planners, Not Big-Box Execs, Blamed For Small Biz Woes
How cozy are you with your local planning commission, city council or county officials? If you want to preserve existing small businesses and the look of a local business district that has evolved over many years, those are the decision makers you need on your side. While it’s popular to blame national big-box retailers for the demise of smaller local merchants, more often than not, the real culprit is zoning changes instigated by local government officials. In their attempt to boost local revenues they often make zoning changes aimed at redevelopment. These efforts typically force out existing businesses and tend to eliminate the architectural and cultural features that make an area unique. Saving local merchants This is what a Hunter College study found after looking at 10 year’s worth of business changes in Brooklyn. Mike Owen Benediktsson, assistant professor of sociology along with students Brian Lamberta and Erika Larson concluding that fighting chain stores alone isn’t enough to prevent the loss of “mom-and-pop” shops in a community. Always on the hunt for strengthening an area’s tax base, local officials usually turn to the tactic of adding commercial space through rezoning. This gives property owners an incentive to either redevelop their sites themselves or sell out to developers. Along with this comes higher rents that force out existing tenants. This scenario is far more common than a chain retail giant swooping into a community and forcing out smaller businesses through competitive pricing. However, if large existing storefronts come under the umbrella of rezoning for redevelopment, it paves the way for the big national brands to come in. Kelo v. City of New London This is somewhat reminiscent of what happened in New London, Connecticut, when the city used its power of eminent domain to transfer land from one private owner to another in the name of economic development. The US Supreme Court ruled the taking legal, but tragically, the hoped for development never materialized. It is certainly true that small businesses need local governments that are financially strong. However, it’s also true that the lure of higher tax revenues can put small business owners and their elected officials on the opposite sides of some zoning issues. I remember a local official once saying that all the important decisions he made during his career were land use issues. That’s critical for small business owners to keep in mind as they decide who to support for local office. On the positive side of this issue, many local agencies are eager for public input on zoning proposals and master plan development. Be sure you participate. If you don’t, you might someday find that you can’t afford to do business in your own hometown. Image: Kabul – City of Light Development area and concept plan, uploaded by Arcaddmarketing, used under a Creative Commons Attribution-ShareAlike...
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