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“Carson City’s Business Achievement Center is a diverse coalition of businesses that work collaboratively to offer an array of resources, services and expertise locally, regionally and nationally to assist start-up, established and expanding businesses.”
Showing posts with label Management. Show all posts
Showing posts with label Management. Show all posts

Feb 13, 2013

Employee vs. Independent Contractor: What You Should Know

Contributed by Elite Bookkeeping & Tax Services

Whenever a business starts there is always the question of how the people that provide services for the business will be paid. Will those services be performed by employees or will independent contractors be used?

Before the business can determine how to treat payments they need to know and make clear the business relationship. It is important to establish this relationship because an employee has taxes withheld, social security and medicare matched by the employer, unemployment insurance paid, workers compensation insurance paid and often benefits provided. An independent contractor just gets paid. It is a big expense difference.

To determine whether an individual is an employee or and independent contractor, the relationship of the business and worker must be examined. It comes down to does the business have control over what and how a job will be done or do they just control the results of the job. The determination falls into three categories: behavior control, financial control, and type of relationship.

Behavioral Control

Employees are generally subject to instructions about when, where, and how to work. The employer controls when and where the work is performed and what hours the person will be at the job. The person is told what tools and equipment to use, who else can be hired to assist with the work and where to purchase supplies and services. They are told what work is to be performed by a specific individual and what order or sequence to follow. Employees also may be required to receive training by the employer.

Independent Contractors can be hired to do a certain job in a certain place and be completed by a certain time. However, how the job is done is up to the contractor. When the work is performed, what equipment is used, who is hired to assist and where materials and supplies are purchased are up to the Independent Contractor. They also obtain and pay for their own training.

Financial Control

An employee is generally guaranteed a regular wage amount for an hourly, weekly or other period of time, even if the wage or salary is connected with a commission. They may be paid whether work is being performed or not. An employee generally does not have an investment in the company unless there are stock options available. They usually have any expenses they incur for things such as travel, phone, or equipment reimbursed.

An Independent Contractor is not reimbursed for any expenses. They generally have a business of their own or a significant investment in the facilities and equipment used to perform the work. An Independent Contractor is free to offer services to the general public and can take on jobs for other companies or individuals. They generally advertise their services and maintain a home office or visible business location. They generally get hired and paid by the job, usually a flat fee. Although some jobs can be billed hourly. An Independent Contractor can make a profit or loss on the job.

Type of Relationship

An Employee generally signs a employee contract. The employee is generally provided benefits such as insurance, pension plan, vacation and sick pay. Employee's are engaged for an indefinite period of time. They perform activities that are a regular daily part of the business. They fill out an IRS W-4 form that tells the employer how much taxes to withhold. They are not free to do business for other companies and in fact some companies have penalties if they do.

Independent Contractors have job by job contracts or for specific project or periods of time that state they are responsible for their own taxes. They are not provided with any benefits. They fill out an IRS W-9 form telling the IRS that no taxes are required to be withheld.

It is important to determine what kind of relationship from the beginning of your business. If you treat an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that person. Also, if you pay an individual as an Independent Contractor, they do not qualify for unemployment of workers compensation so if they try to collect it, you will want to be ready to verify they are not an employee.

For assistance with bookkeeping or tax services, contact Elite Bookkeeping directly at (800) 416-3820. Visit their web site at http:www.elitebookkeeping.biz

Find out more about the Business Achievement Center at our web site http://www.BusinessAchievementCenter.com. Our group of Strategic Partners are here to help businesses from start-up to expansion with our experience and expertise.

Jan 25, 2013

Most Common Reasons Businesses Fail, part 1 of 2

Whether you have a new or existing business the last thing you probably want to think about is potential failure. However, by being proactive and becoming aware of the most common reasons you are more likely to avoid these pitfalls.

#1 Bad management. This is the number one reason businesses fail. Whether you intend to manage your own business or hire someone, it's essential that the manager have the proper skills. Unless people realize where managers are unskilled and provide a remedy your company may be headed for disaster.

For example, is your manager neglectful? They should regularly evaluate procedures for efficiency. They should organize, plan and control activities, and also do market research.

Does your manager lack expertise? They need to be familiar with financial aspects of your business as well as purchasing, selling, hiring, delegation, and so on. Your manager should be a strategic thinker who can turn a vision into reality.

Many business owners invest in management training. Not only can it save money in the long run, but it may save the business.

#2 Insufficient capital. All too often people underestimate the amount of capital they need to start, operate or expand their business. It’s important to utilize resources and experts to gather necessary information for calculating costs.

A good rule of thumb is to always give yourself a cushion by factoring in an additional percentage as well as setting aside emergency funds.

#3 Poor accounting practices. Do you regularly review your financials? You have to know what your financial weaknesses are so that you can make adjustments. You need to monitor your finances from the very beginning so that if and when you do seek capital, your credit is in good shape.

Also the bookkeeper may be performing their job well, but they don't always watch if the business is meeting financial goals. That's typically the job of the CFO, but until there is one that responsibility falls on the owner.

#4 Lack of planning. Any project requires careful, methodical and strategic planning and the same goes for your business. Their business may be the biggest financial risk of their life, but some business owners spend more time planning a vacation.

It's not just important to have a Business Plan- it is critical! Why? Because it is your road map to your visions, goals, workforce needs, potential problems, etc. You need to know where you want to go with your business before you can communicate that to your managers. If you don't know the route you want to take, how can you expect them to stay on track?

#5 Location. There are several things to consider when it comes to the location of your business. First of all, will you be too far from your customers? That downtown location might seem expensive at first, but if you're establishing your business in a more remote area because it's cheaper, people may not get to you.

What about access to your business? If your potential customers have a difficult time accessing your business, they may just decide to go elsewhere.

What is the condition of the building? You definitely don't want to operate your business in a building that is dilapidated. Not only can it detract new business, but there may be risks of injuries that can invite lawsuits.

Also is your business right for the community? You should know the demographic information beforehand to assure that you have a sufficient potential customer base. If your target market is young adults, for example, you certainly wouldn't want to open it in a retirement community.

Other recommended posts
Ten Tips for Business Success
The Business Plan: Not Just a Blueprint
Making Expense Management A Priorty

Find out more about the Business Achievement Center at our web site http://www.BusinessAchievementCenter.com. Our group of Strategic Partners are here to help businesses from start-up to expansion with our experience and expertise.

Sep 18, 2012

Evaluating Efficiency for Next Level Expansion

Definition of Efficient-
1. well organized: performing tasks in an organized and capable way
2. able to function without waste: capable of achieving the desired result with the minimum use of resources, time, and effort

Starting and maintaining a business is definitely a challenging task- especially in today’s economy. If your business has survived for two years or more, you deserve to be congratulated for beating the odds.

So you’re ready to take it to the next level. Now what? You want to grow your business, but how are you going to handle the work load? No matter what business you’re in, you must always be prepared to:

Evaluate
Plan
Change

Evaluating your business requires an open mind. Clearly you have been doing some things right or your business wouldn’t have survived thus far. But is your business running as efficiently as possible?

If you’re hoping to grow and take on more business, you should do an efficiency evaluation well in advance. In fact, you should do that right from start. It should be part of your overall plan.

How do you make your business more efficient?
Take a look at how your employees are doing their work and get their input. They are your best inside resource. Ask them what problems they're having and get their ideas on how to fix them. They may not all be feasible, but you won't know if you don't ask.

Consider things such as new software and equipment. What you have may be working, but there may be better options that won't break your budget. Change has a way of finding us even when we're not looking for it, but you're better off being proactive versus reactive.

Pay attention to your management team. Make sure they understand the importance of managing resources for efficiency. They should be managing resources and leading people. Perhaps training is in order.

Utilize outside resources. Go to the experts. Henry Ford once said "I may not know how to run an automobile manufacturing plant, but I can hire people who do."

Here's an example of one successful service company did. They had developed what they considered "a fine tuned system" for producing their product. The clients purchased a “package” and it was delivered in a satisfactory and timely manner about 90% of the time.

Business was good and they began to expand in another state.

The expansion challenges
They needed capital and they needed to be able to take on the additional work load. The “processing phase” although previously successful from the clients perspective, wasn’t as efficient as it could be. The busier they got, the more employees they needed, but errors were increasing with each new hire.

More employee time was being shifted from customer service to fixing errors. The cost to produce it was devouring capital in both profits and customer service time.

Simply taking out a business loan at the time seemed risky until they got things under control. So they wisely took the time to do a complete evaluation.

What they found after evaluating the process
Why the increase in errors? The same data from new orders was being entered over and over on multiple forms as well as in their database. More business meant more entries. More new customers meant more telephone calls and more distractions, etc.

They were spending an exorbitant amount of time correcting errors and unfortunately, too many of them went unnoticed.

Their solution
The did a database modification that included built in forms that pulled the information from the client’s record. This included a database generated form to compare to the purchase order to double check for accuracy before documents were actually printed. The data was now entered only once.

The process involved consulting with the company that designed their original database, but the majority of the modification was handled in house.

The benefits
The company ulitimately saved hundred of thousands of dollars in labor and materials. They were able to reduce the average processing time from start to finish from two hours down to twenty minutes with 99% accuracy (the human component).

Referral sales increased dramatically. All of those happy customers were eager to tell their friends about the excellent service they received. This company has since gone on to establish multiple affilate offices.

Your business may or may not be in the service industry, but if you’re not currently doing so, you should take the time to evaluate your business efficiency on a regular basis. If your business is going to continue to survive and get to the next level, it is a must.

Find out more about the Business Achievement Center at our web site http://www.BusinessAchievementCenter.com. Our group of Strategic Partners are here to help businesses from start-up to expansion with our experience and expertise.

Sep 13, 2012

Five Great Questions to Ask Your Vendors


How easy are you to fool? Most of us tend to consider ourselves savvy professionals. After all, if you own a business, you clearly have some level of aptitude when it comes to the business world around you. Yet there are still situations where we may end up taken in, tricked, misled, or just plain romanced. The problem is, all around in the world there will always be some new technology or feature that could help change your business.

If you are smart, you at least take the time to listen to new ideas... but the downside of that openness is that you might unintentionally open yourself up to being the victim of a scam of some sort. Not every scam stinks the first moment you see it, because not every one is malicious in nature. But your time and money are valuable and you need to be able to protect yourself from those who might waste one, or both — whether they realize they are about to do it or not.

Here are five questions you should ask anyone who might be selling you something to test whether they will be a good partner to work with or if they might just be full of hot air:

1. How will you measure if our partnership is successful? Most people will be ready to answer a question of how to measure success for you and your business — or at least they should. The more challenging question is about what makes entering a relationship with your business successful for them. The answer they give you will tell you a lot about how they see the relationship they are about to enter with you.

2. What else will I need to budget for next year? Many technology buyers are familiar with a concept commonly abbreviated as TCO — or the Total Cost Of Ownership. This simply refers to your overall cost of buying something over time. Asking the question about budgeting for the next year, though, can get a sales person to open up about ongoing costs in a way that asking about ongoing costs might not, because they can see dollar signs for future money. And the upside is that you will get real info on what your total cost of ownership will be.

3. Who else will I be working with (or what other products will I need to buy)? One of the oldest tricks in selling services professions is bringing the "A-team" to a first meeting with you and getting you to fall in love with the stars on the team (who you may not necessarily work with). To make sure you are not getting romanced by one superstar, insist on meeting more of the team members and individuals who will actually work on your business. If you are buying a product, make sure you see the other products in the range that you may need or want to purchase at some point in the future.

4. Where will I be in your range of customers? It is a fair question to ask to find out how important your business is likely to be to a new company that you will be working with. This does not, however, mean that you always need to find a company as a partner where you will be a big part of their customer list... it will just give you a sense of what you might expect and also help you ensure that you are not paying a premium for service when you know you are just a small part of the overall portfolio of customers for who you decide to purchase from.

5. What do I need to do to get a better deal in the future? Once you understand the costs that are involved in whatever you are purchasing, you should also get an answer for the future on how you might be able to negotiate a better deal. This will be valuable to know because if your business increases and you end up purchasing more, you need to know the thresholds to get more preferential pricing, or how else you can improve your contract moving forwards.

Find out more about the Business Achievement Center at our web site http://www.BusinessAchievementCenter.com. Our group of Strategic Partners are here to help businesses from start-up to expansion with our experience and expertise.

Sep 10, 2012

Making Expense Management A Priority


Always be internally-driven: Keep improving your process. Have a good employee suggestions program that works, that is, all suggestions are carefully evaluated and those that are implementable are actually implemented, and if they work out well, the employee is suitably rewarded.

Always be externally-driven: Stay on top of changes in technology and process. Even when a technology is not directly targeted at your application/process, you need to evaluate it to see if you can use it for cost reduction.

Competitor-driven: Benchmarking against your competitors is ideal. You must have real time data on your competitors' cost position. If you find that your competitor is doing better than you, immediate action is needed.

Always be Implementing a cost reduction program: After you have compiled the data from competitors and other industry benchmarks, set realistic goals first, though it is perfectly fine to have ultimate goals as well. Ruthless cost cutting can have negative consequences.

Develop a cost reduction program in consultation with each and every employee who could potentially contribute. Do not limit the team to managerial types. In many cases, the floor staff has a better understanding of what works and doesn't and how to make the process better.

Always do a ROI analysis. No cost reduction program should be undertaken until the ROI justifies it.

Explore all options for cost reductions and not just those related to business process redesign or technology/equipment upgrades. Some of the other options that can be considered are outsourcing or off-shoring.

Business process redesign - A simple framework for small and medium-sized businesses While growth is a preferred mode of creating value in almost all cases, an enterprise still needs to focus on operations management, or more specifically, on the robustness of its business processes. Business processes, therefore, may need to be redesigned from time to time for the following reasons:

1.Existing process are broken, or in other words, performing at sub-optimal levels

2.New technology/equipment/systems are available

3.Competitors have better business processes putting you at a competitive disadvantage

4.Business model transformation is being implemented

5.Customers expect you to align your processes with theirs

While business process redesign (or reengineering or revamping or overhaul) may initially seem overwhelming, it shouldn't be. In fact, most businesses should be able to do a large part of BPR on their own. We believe that no one knows an enterprise's processes better than their own employees. However, there are areas where an external advisor can create value:

1. Employees are often reluctant to identify broken systems, inefficiencies, errors, etc. because it is likely to make them look bad

2. Consultants and advisors, through their work with other companies, have a better

3. understanding of what works and what doesn't. Thus, by tapping into their knowledge base, you can not only save time and money, you are also ensuring that you are using the best practices available in the industry. They also have better idea about benchmarks and may, therefore, help you set realistic expectations from BPR

When an organization decides to outsource, reducing costs is always one of its main objectives. Then 'reducing' costs evolved into the need to 'control' them. And today, the financial aspects are often not even listed among the key points. It's true that cutting costs remains an important factor, but rather as a consequence of the main requirements: nowadays when an organization embarks on an outsourcing project, it is looking above all to safeguard its operation (thanks to state-of-the-art Data Centers, industrialized processes and formal, guaranteed levels of service), to make sure it has easy access to the expertise it needs to manage complexity within its information systems, to access technological innovations more quickly and to be in a position to respond to fast-changing business practices.

What customers presented to their service providers followed quite a simple formula: "do the same thing, but better, faster and at a lower cost". At that time, outsourcing often consisted very largely of taking over existing systems. But for the past five years, IT Departments have had to face a dual, and clear-cut acceleration: within business itself on the one hand, which has led their internal customers to expect their information systems to be much more responsive.

And, on the other hand, on the technological front, especially with Web technologies now reaching maturity (including those operating at back office level) and the growth in consolidation and virtualization.

Today's outsourcing contracts take this change into account and as a result they are including much more development work rather than simply operational tasks. Which is why costs no longer take center stage in the list of requirements for the contract: before doing things in a less costly way, you have to start by actually doing it in the first place!

Find out more about the Business Achievement Center at our web site http://www.BusinessAchievementCenter.com. Our group of Strategic Partners are here to help businesses from start-up to expansion with our experience and expertise.

Jul 10, 2012

Facilitate, Facilitator, Facilitation…What Should I Know?

Contributed by Betsy Kosier, MA JD
President/Owner of Interaction Alliance
Connecting People, Process & Purpose

A dictionary will tell you that the word facilitate is a verb that means to make things easier, facilitation is the act of making things easier, and a facilitator is someone who has taken on the responsibility for making things easier, such as managing a meeting or group process, navigating the pace and progress of a project, or even helping to overcome communication challenges. We have all heard and used those words, yet their meanings may vary depending on their intent.

In the generic sense, most people facilitate in a variety of ways every day – at the office, at home and within our communities. There are those who are by nature more able than others to provide assistance and there are situations that appear to be more amenable than others to moving forward. For whatever reason, people, topics, courses of action, past experiences or other circumstances may make progress toward a goal seem unlikely. Or you may want to be part of a discussion unhindered by your day-to-day role. The advantage of a well trained, professional facilitator may be just what you need!

The specialized profession of facilitator has become quite visible; there are facilitator associations and conferences as well as organizations and consultants offering facilitation services. But what distinguishes the professional field of facilitation from someone’s untrained effort to make things easier, which may be well intended but ineffective?

Experienced, skilled facilitators demonstrate an array of characteristics that have significant value when you are faced with factors that challenge your ability to succeed. This checklist of common attributes will be useful in your search for a qualified facilitator:

• Neutrality regarding the discussion topic, impartiality to participants and consensus among participants to make use of a particular facilitator due to those qualities

• Employs organizational analysis to help you identify critical stakeholders, discern what may affect your group process and participants, and ascertain desired outcomes

• Collaboratively plans and designs a group process that is responsive to participant needs, safe for open or confidential communication, and inclusive of stakeholders

• Delivers a group process that encourages information exchange; explores perceptions and assumptions; elicits diverse perspectives; and attends to differences, conflict and power dynamics with constructive intent

• Utilizes strategies that invite inquiry, promote clarification, honor self-determination and manage impasse productively

• Listens with focus, summarizes thoughtfully and distills all information considered by participants to be important

• Fosters participant-owned outcomes without inserting opinions or other persuasive tactics, and strives to be process, not solution, driven

• Cultivates a meaningful negotiation process that engages all participants; discovers and demystifies issues; captures content; and supports collaborative decision-making, realistic implementation strategies mutually crafted by participants and closure

• In a timely manner, completes the written product you desire, which reflects integrated content and sustainable results that emerged from group discussion.

Is this someone who leaps tall buildings in a single bound? No; a professional facilitator is simply someone who is well suited to shepherd a group of any size through a customized process that tackles issues of importance, reveals a sense of direction, and overcomes the complexity and uncertainty of human interaction.

For assistance with facilitation, organizational development, training, etc. contact Betsy Kosier via http://yourinteraction.com.

Follow on Twitter @InteractAll

Find out more about the Business Achievement Center at our web site http://www.BusinessAchievementCenter.com. Our group of Strategic Partners are here to help businesses from start-up to expansion with our experience and expertise.

Feb 3, 2012

Tap Into Human Nature

Contributed by Betsy Kosier, MA JD
President/Owner of Interaction Alliance
Connecting People, Process & Purpose


We all know that one of the biggest issues for companies is the bottom line. An important part of cost containment and sustainability is making sure that you’re utilizing your human resources to their fullest potential. One way to do this is by tapping into human nature to create an environment that helps to facilitate long term success.

To get the most out people who work for you and with you, pay attention to three basic characteristics of human nature:

• People need to and want to be heard
• People need to and want to be valued
• People operate best when there is clarity

What does it take for people to be heard?
Listen. Let them know what you’ve heard, clarify if you need to and use what you’ve learned to move forward constructively. While the intensity of this need to be heard varies from person to person, its premise is reflected everywhere – from the procedural justice intent of due process rights imbedded in the U. S. Constitution to the concepts inherent in collaboration, neutral facilitation and facilitative mediation. The importance of being heard is at the heart of “buy-in.” Opportunity to be heard is the least costly way to achieve a sense of satisfaction and fairness among stakeholders – the people who are affected by outcomes and decisions – and the most likely way to arrive at good decisions.

What does it take for people to be valued?
Give them a chance to meaningfully contribute by offering them opportunities to share perspectives, generate ideas, solve problems and shape decisions. Acknowledge their contributions by letting them know how their perspectives or ideas will have impact or be incorporated. Be clear from the start about how new ideas and information will be utilized. Authentic participation and realistic expectations help people own and follow-through with decisions.

What does it take to provide clarity?
Communicate expectations that are transparent. Identify non-negotiables. Be open to questions and provide genuine opportunities for inquiry about boundaries, roles, authority, performance standards, conflict resolution and direction. Make sure the task is clear and participants understand what human interaction it will take to accomplish the task well. Strive for consistency; too many moving targets will produce confusion, defensiveness, frustration, and even mutiny or sabotage.

If you are mindful of these important human attributes, what do you get?

You reap greater capacity, innovation, effort, buy-in, accountability and results. Instead of surprises, uncertainty, errors, destructive conflict and misdirected efforts, you achieve a more functional organization that is more purposeful about its culture…and its well being.

Need help with this? Contact Interaction Alliance! We will help you implement opportunities for facilitated discussion, inquiry and information exchange for planning, problem solving or organizational development.

IA ensures a responsive, comfortable process where each person contributes meaningfully to information exchange and inquiry. We make certain that interaction is constructive no matter how diverse perspectives are, and participants are heard regardless of complexity or intensity. We make progress and sustainable results possible by accurately capturing and summarizing content. Most importantly, we honor your capacity to make your own decisions.

For additional information or assistance contact:
Betsy Kosier at 775-883-3927
Visit our web site at http://www.yourinteraction.com

Find out more about the Business Achievement Center at our web site http://www.BusinessAchievementCenter.com. Our group of Strategic Partners are here to help businesses from start-up to expansion with our experience and expertise.