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Keep your current job, start a business!

January 29, 2013

Let’s be honest.  Walking away from a job with benefits and regular pay doesn’t seem like the greatest idea right now with the economy the way it is.  But think about this ideal situation: keep your current job while you start a business on the side.  This is commonly called “absentee” or “semi-absentee” business. Many people look would love this scenario, but don’t realize understand exactly what it means. Before you get started, here are four helpful tips as you search for that perfect absentee opportunity:

1. IN EMPLOYEES I TRUST: You will have to learn how to really “let go” and trust others.  Absentee businesses require employees. While you’re working at your regular job, you’ll need someone who can run the shop. There has to be at least a few trusted workers on site to operate the business, and it can be a challenge to find them. As a new business owner, you’ll learn quickly the importance of acquiring the face of your business – your employees.

2. LOCATION, LOCATION, LOCATION: Learn it, love it, live by it.  It will become your mantra.  In general, you can’t run an absentee business from your home office. You need to have a place where customers and clients go so they can purchase your product or service. As an absentee business owner, finding the right location to do business will be one of the most important aspects of your business. (more…)

How Can Businesses Protect Themselves During a Recession

January 28, 2013

Many U.S. businesses are still climbing out of the 2008 recession and there’s still the possibility that we could fall right back into one within the next couple of years. There’s significant uncertainty ahead of us as global economic growth remains subdued and the U.S. has yet to resolve key tax and financial matters related to the fiscal cliff. No matter what happens in the next couple of years, all entrepreneurs need to be prepared.

Review your financial model

You may not be a financial professional, but you still need to understand how changes to company sales and expenses will impact the bottom line. Work with your accountant or hire a financial consultant to help you understand what the impact will be from varying degrees of recession. Obviously, businesses with high fixed costs are at greatest risk during a recession, but each business model needs to be monitored for a five, 10, 15 and 20 percent decrease in sales.

By performing the analysis now, you’ll have a game plan for what needs to be done to maintain profitability and to sustain the business during a recession. It may be that a 10 percent loss of sales means that you need to lay off or demote X number of employees and close X number of locations. These decisions will need to be made swiftly and ahead of the storm, which is why you should create a plan now. (more…)

5 Strategies for a Successful Acquisition Deal

January 25, 2013

It’s a well known statistic that approximately two-thirds of acquired businesses fail. While these stats are based on publicly traded companies with failure measured by loss of equity value, there is no reason to believe that the failure experience is any different for private companies.

The statistics are daunting; however, companies continue to be acquired for a variety of good reasons and not all acquisitions fail. While the success or failure of an acquisition is often based on post-purchase issues (such as the melding of company cultures), there are five strategies that can help you beat the odds.

1. Strategic Acquisition Plan

First and foremost, understanding the motivation for acquiring a company is the first step to a successful acquisition. If the reasons for purchasing a company are clearly stated and supported, that laser-like focus will help: guide your purchase decisions; communicate your objectives to employees, service providers, and potential companies; and provide a benchmark to measure your success. To clearly define your motivation, ask yourself: (more…)

Getting Started With Pinterest: The Top Questions from Small Businesses

January 23, 2013

You may have heard of the hottest new social media tool, Pinterest.  Pinterest is like a virtual bulletin board that allows users to find and curate images and videos. Unlike other photo sharing sites, Pinterest is focused much more on the discovery and curation of other people’s content, not storing your own. That’s why it’s caught the attention of so many organizations—big and small. It’s helping them spread brand awareness and is driving lots of web traffic.

Here are the three of the top questions I’ve heard from small businesses looking to get started:

1.“What are the differences between Pinterest, Facebook, and Twitter?”

Pinterest is not an entirely different world of social media marketing- it uses a language that most social media users already know. Often, people are intimidated when they hear terms like “pin” or “repin,” but put them in the context of “tweet” or “retweet,” and finally they make sense. And when it comes to liking, commenting, and sharing—these are things you’re probably doing every day on other sites. (more…)

Protect Your Business Against Final Pay Issues

January 18, 2013

The end of employment isn’t always the end of your involvement with an employee. If you make any of a number of common mistakes when an employee leaves, or is asked to leave, it could result in liability for your company and, in some instances, liability for you. Final pay, or paying out whatever the now-former employee is owed (while not paying more than is due) can be a minefield.

Below are some of the most common questions about ending employment and answers that will help you protect yourself and your business. Bear in mind that employment law exists at both state and federal levels. Each state has its own statutes and regulations governing at least some, if not all, of the issues in the questions below. It is critical that you understand your state’s requirements. Also note that while employment law is not contract law — not unless there’s an employment agreement — there is this similarity: you can’t arbitrarily change the rules on an employee.

For final pay purposes, does it matter if employment ended voluntarily or involuntarily?

Maybe. In some states, a company’s final pay obligations might differ depending on whether you are reluctantly bidding adieu to a good employee, or gleefully showing a bad one the door. For example, in Connecticut an employer is required to pay a fired employee his or her final paycheck no later than the next business day. (more…)