Why Are Small Businesses Embracing Cloud Computing?

In 2015 the percentage of small businesses in the United States, Canada, the U.K., and Australia  that ran their operations in the cloud was 37 percentage. Only a year later an Intuit study reveals that the number has grown significantly - to 64 percent. In addition, 68 percent of these same small businesses use mobile or web-based apps in their day-to-day operations. A few years ago in 2014, Intuit predicted that by 2020, 80 percent of small businesses will have embraced cloud computing. This is an amazing shift in the way small business is being done, and it’s occurring practically overnight.

Of course, what small business owners are concerned about now is what they’ve always been concerned about: controlling costs and increasing productivity. So why are they embracing cloud computing and apps?

Cloud computing fully utilizes hardware, and businesses can therefore do more with less of it. This means that companies have pay less money to buy, install, maintain, upgrade, and fix their on-site computers and servers. They also will have lower electric bills because they will not have to power all of the equipment they had to before cloud computing. For a small business like a family dentist, eliminating the headache of any unnecessary on-site IT - while simultaneously backing up records off-site - is worth it.

Collaboration is also much easier in the cloud. Take Google docs, for instance. Any number of employees can easily access and edit a single document without having to purchase compatible software or hardware. They can also access them wherever they are - as long as they have access to a computer or device and wifi. Easy, universal access to documents allows small businesses more flexibility. It’s possible to run a small business without renting physical space now since employees can and do work from home or wherever they are comfortable and productive. That can mean enormous cost savings and completely eliminated barriers to entry.

What are some reasons that some small business owners are avoiding employing apps? There are a number. First of all, there are so many apps available, that many people feel unsure of which ones work well and best meet their needs. Secondly, there’s the cost. In the previous small-business model,  software was an upfront cost. After the company purchased it, it could be used as much as and for as long as desired. Adopting cloud computing and apps means having to pay multiple monthly or otherwise regular fees that may go up over time. Also, once businesses make the switch to a specific service, they may feel like important aspects of their operations are held hostage to outside services over which they have neither control nor input.

Finally, companies want the apps they use to be simple and easy to use. The business landscape is still made up of at least three generations of people. Those people are not equally comfortable with computers, mobile devices, or apps.

Still, most business owners must feel the advantages far outweigh the disadvantages because the speed with which this change is happening is startling. When most of business is cloud dependent, this may have additional ramifications for how and where business is done.

How Often Should You Update Your Business's Blog?

Any business with a website should be aware that maintaining only a stagnant web presence isn’t good either for improving your reach or customer base, increasing interest in your products or services, or satisfying Google’s algorithm (and improving your chances of being found in Google searches). The shorter of version of this is: if you have a website, update it. Specifically, you should be putting out original, accessible content on your blog on at least a semi-regular basis.

Many small business owners don’t know what kind of content is appropriate, though. It’s more complicated when the business’s specialty isn’t general audience. A dermatologist can talk about skin and skin care for an infinite number of blog posts. All people have skin and have therefore experienced skin problems. A vendor that sells and installs engineering software can only write so many posts about why to purchase that engineering software from that company. Businesses with more targeted products or services must think outside the box more.

What makes a good blog post? This is what Corporate Conversions, a West Michigan marketing company, has to say:

A web post should:

• Be at least 400 words long. SEO copywriting guidelines suggest 250 at a bare minimum, but unless a post has a number of pictures, you need four or so paragraphs to tell a story.
• Center around topics within your industry that people have questions about. These can be news stories, how-to articles, or even items of controversy. People who Google topics involving your industry might find you via those new articles, and you may gain new customers.
• Have pictures. Everyone loves them. The more original, interesting ones you can add, the better. If you can show your employees enjoying themselves or demonstrating what your company does, that’s great.
• Highlight company changes, updates, or interactions with the community. If your company does volunteer work or raises money for a good cause, talk about it!
• Include links - both outside and inside. Link to your own content so that new readers have exposure to it. Link to external articles that illustrate your points or give your readers more to explore.

These are the basics of what needs to be included, but the most important thing is to know your audience and write to engage it. The best blog pieces will be watercooler content - meaning, people will want to talk to other people about it because it either raises questions, is entertaining, puts forward an opinion that can be discussed, or otherwise captures some emotion. The more eyes you get on your blog content, the more people will know your name and what you do.

When you have persuaded people to talk about your content to others, then you have created truly successful, sometimes even viral, marketing. It doesn’t get any better than that. Word of mouth operates as both advertising and recommendation. It also builds trust in your company and your brand - if it’s positive. It’s your job to build and channel positive web content.

If you don’t know what to write, make a list of questions your clients or customers ask about, and address them one by one. It’s also helpful to bring up industry concerns or happenings, or successes your business has recently had. Focus on the practical ways your products or services benefit people. Those things are easy to discuss over the watercooler.

If you feel stumped about what to put on your blog, remember that something is better than nothing, and even simple posts with pictures will be interesting to many people. Talk about your business’s service ethic, highlight your employees’ skills, or link to interviews people have done with other publications. The name of the game is new content, updated regularly.

Could Your Hobby Become Your Small Business?

Most people spend their entire lives working for someone else, sometimes doing work they enjoy and other times just earning money to pay the bills. They dream of retirement when they will have enough money to do something they love to make a bit of money and keep busy. Some entrepreneurs have figured out ways to make their hobbies pay, either by focusing their energies and knowledge in very specific ways or by creating side businesses that do not take too much of their time but are still financially and personally rewarding.

Suppose you like coin collecting and have a real passion for it. You are familiar with which coins have very high value, what coins other collectors discuss and search for, and which lower value coins can be located easily and sold for a profit. You’ve read extensively about or even seen famous coin collections exhibited. With this sort of hobby, it’s not the coins you manage to acquire that gives you a marketable advantage - it’s your knowledge of both coins and coin collectors and your ability to bring the two together. Collecting has given you that skill set, and setting up an online storefront/ecommerce site would be a straightforward way of making that available to others. Beyond that initial investment of time and money, all you’d have to do to make your business viable would be to spend more time on your hobby.

This seems like a win-win situation, doesn’t it?

There can be complications, however. A lot of hobbyists dabble in making money, selling to friends or acquaintances or just when they need a little extra cash. They ease into business creation so slowly they don’t realize they are failing to act like business owners, whether that means detailed record keeping or declaring income to the IRS. Obviously, this can get them into trouble - the more trouble the more successful they are.

A long-standing IRS rule is that the income you make doing your hobby is considered business income if you’ve made a profit for three out of five years, including the current year. Obviously, the more money you make, the more it would benefit you to consult a tax professional and ask for advice. You do not want the IRS to dun you for thousands of dollars because you were better than you thought at your interests.

It gets more complicated when you lose income because, while the IRS counts every bit of money made as income and expects you to report it, it only allows you to deduct losses against gains. So if you make $2000 selling coins and lose $775, you are responsible for paying taxes on the net $1225 of profit. If you simply lost $775 this year on your hobby, that’s just bad luck for you.

It’s always best for a business owner to keep scrupulous records and remain apprised of any tax laws that might apply to them, but don’t let those considerations scare you away from trying to build a business with any knowledge or skills you’ve picked up because of your love for something. Chances are that if you’re in expert in something, there’s a way to benefit from that expertise somehow. A little bit of brainstorming into the how could result in money in your pocket.

Lean Thinking Remains a Critical Business Concept

In today’s competitive economy maximizing customer value and minimizing operational waste is a necessity. The working term for this is lean. Organizations that are lean recognize what customers value and the ways in which to increase that value. Whether a product or service provider, they aim to do this with zero waste.

Rather than focusing on optimizing separate functional departments, lean thinking focuses on improving the organization in a more holistic manner: how products and services flow through the the entire value stream. Consequently, an organization that undergoes lean transformation eliminates the waste of unnecessary labor and space within that stream. Beyond the savings achieved with such changes, organizations are subsequently much more flexible in meeting changing customer desires.

Lean thinking found initial success in many manufacturing organizations during the late 1980s (most notably through the Toyota production system). Unlike a new technology or cost reduction program, lean thinking focus is long-term, strategic and operational. As such, eventually service organizations (even governments) started to translate lean thinking for their own processes.

Getting rid of waste requires discerning what is essential and nonessential work with regard to running a viable business. Obviously, eliminating nonessential waste should be the first priority. It constitutes work that the customer does not value and what the business does not require to remain viable. Necessary essential work, the non-value adding work that is required for a company to remain viable, should be reduced when necessary. How do lean businesses do this?

Initiating lean thinking involves a process called value stream mapping. A value stream (as referenced above) is simply the sequence of activities involved to produce or deliver a good or service. Examples include order processing, design, and raw material conversion. In contrast to viewing an organization as a series of function-based silos (Human Resources, Purchasing, Finance, etc), value stream mapping creates a bird’s-eye view of the organization’s entire work system. In all, value stream mapping reveals the organization’s information flow and workflow alongside a summary timeline. The mapping reveals what is in place with respect to these three components, not how they work.

By mapping an organization’s current state operations, opportunities to operationalize lean thinking become readily apparent. Ideally, a team of department leaders from across the organization meet to generate ideas for improvements. Eventually, a “future state” map of operations takes place. Once lean thinking ideas are agreed upon, a company's transformation plan is produced in league with a leadership sponsor. Such a plan is the first step toward creating a culture of continuous improvement.

Why Women Fail To Break The Glass Ceiling

Although women make up more than 50% of the American workforce, relatively few of them move into corporate senior leadership positions. Despite the fact that women are making great strides in leadership development and educational attainment, today they  account for only two percent of Fortune 500 CEOs.

So why the disparity? Is it simply traditional sexism? Or is something more complex going on? In The Silent Language of Leaders: How Body Language Can Help - Or Hurt - How You Lead, Carol Kinsey Goman asserts that the difficulty lies with women “being subconsciously recognized by their peers as acceptable leadership material.” In a University of Delaware study nonverbal responses by females “elicit visible non verbal cues of negative affect.” In particular, “females speaking up and taking a leadership role receive fewer pleased responses and more displeased responses from fellow group members than males leaders offering the same input.”

These unconscious, negative nonverbal cues come in the form of head shakes, frowns, and eye-contact avoidance, and they tend to be mimicked throughout a group. This reinforces the idea that women should not speak up or take leadership within any group. This finding is suggests that it’s not simply men refusing to acknowledge the work contribution of women. In part, it points to how unconscious gender expectations play out in the work world, even in mixed company. It also reveals how body language cues play out with regard to gender.

So what can women do to combat this situation? Becoming aware of this dynamic is an important first step. Knowledge is power, so to speak. Recognize, for instance, that angry outbursts tend to lessen the perception of a woman's power and competence - just the opposite of what happens when men become assertive or forceful.

With regard to specific body language cues, Goman reminds female leaders to practice several commonly-advised leadership behaviors: retain a calm and authoritative voice (“curb your enthusiasm”), employ a firm handshake, and dress like a leader, avoiding sexy outfits as counterproductive. She also suggests that female leaders smile selectively, claim their space (stand when presenting their ideas and broaden their stance), watch their hands, speak up, avoid tilting their heads, and keep their eyes at eye level to mid-forehead when they converse,

Although females leaders face unfortunate discrimination because of the unconscious bias against them, they can fortify their position by avoiding specific body language cues that undermine their credibility. Women who must interact regularly in fields that are overwhelmingly male, like computer science and engineering, need to do their research on how better to navigate the trickier social waters they face.

How Body Language Can Reveal Client Intentions

Negotiating with a client on transaction details can be a tricky proposition for those not trained in negotiation skills. Boning up on traditional deal making behavior can be helpful, as is learning to read up on body language cues.

Translating body language can be pretty straightforward, especially when people around you aren't trying to hide their feelings. Take a buyer in a strong negotiating position: she may choose to show disagreement about a proposed price without actually saying anything. In such a situation, her body language might include furrowing of eyebrows, pursing of lips, baring teeth, or touching the back of her neck. These are fairly common body language cues that can be easily discerned.

In contrast, a buyer with little negotiating power may seek to hide their distress. Here, body language cues might only be revealed through more subtle pacifying behaviors. The latter term includes those actions that have the effect of calming others down. Examples include leaning away, touching one’s face, hand rubbing, or playing with a necklace (for men, covering or stroking their necks). Even licking the lips or playing with hair may serve as a pacifying behavior. Other subtle body language cues that reveal distress or discomfort include the sudden interlocking of legs or ankles around the legs of a chair, eye blocking with the hands, and squinting.

Once you’re on the lookout for such cues, you’re likely to see them rather frequently. A colleague might touch her neck dimple (instead of her necklace) when asked about her career aspirations. This is a cue that more may be going on with her than you know about. Asking the right kind of follow-up questions might lead you to more information than you knew was there when the conversation began.

The caveat here however is that attempts to read body cues can be fraught with misinterpretation. For instance, a speaker who is folding his arms under questioning might be deemed defensive or guarded. However, he might simply be cold! Body language experts recommend watching for body cues in clusters, such as the speaker folding his arms, turning his body away from you and/or avoiding eye contact. If the nonverbal cues back each other up, you will be able to feel more confident in determining how the people around you are feeling.

Reading body behavior can save business people an enormous amount of time, especially for those seeking to decipher more ambiguous situations. A thorough understanding of body language can serve as a powerful tool for those seeking to deepen their interpersonal relationships.

How to resolve generational tension at work

Currently, with the Baby Boomer generation beginning to reach retirement age and the Millennial generation transitioning from college to work (or work to college), relationship dynamics in the workplace are in a bit of flux. While it's true that there is always an older generation retiring and always an upcoming generation entering, so many changes have occurred over the past fifty years - roughly the time since the Boomers were the entry generation - that there is more potential for conflict in terms of work ethics, social habits, and technological capability, as well as the ever dangerous politics, religion, and values. Let's break down these big three.

Work ethics - As a generation, Baby Boomers have the greatest loyalty to corporations, which from a management standpoint makes them more ideal workers and less likely to leave. They also believe that hard work and ambition leads to success and have been willing to put in the hours to achieve that. In direct contrast, Generation Xers are far more cynical about corporations and authority and are much more likely to invest time in things they see as directly benefiting themselves. Millennials, raised in a rapidly changing environment with an emphasis on praise, have shorter attention spans and will leave a job that they do not find rewarding or doesn't give them enough positive feedback or rewards - or at least that is how older generations criticize them, as less loyal and more demanding. Gen Xers see Boomers as workaholics and company men who got better breaks in the college and employment markets and don't want to retire and vacate the best positions to younger employees. Boomers tend to see Generation Xers as unmotivated and lazy, wanting promotions but unwilling to sacrifice personal or family life to get them.

Social habits - Of the three generations, the Boomers are least comfortable with change. Generations X and Y were raised within a rapidly diversifying society and don't mind working with people of differing races, ethnicities, religions, or sexual identifications. Younger workers are also more familiar with a rapidly changing employment landscape and are more likely to be open to alternative work arrangements, whether that be part-time work, shared time, online commuting, or consulting. Baby Boomers often prefer face-to-face interaction and training opportunities, while Gen Xers and Millennials are comfortable with online training options, email, and texting. Older workers sometimes find an over-reliance on gadgetry to be annoying and may wish to limit it within the office setting.

Technological capability - The younger the worker, the more likely that they've been exposed to rapidly changing technology and are comfortable both with what exists now and what may exist in the future. While plenty of flexible and tech savvy older people exist, Generations X and Y are better with computers and technology, and they more seamlessly apply old tech skills to new tech applications.

Obviously, the best combination of people for any organization is one that contains many complementary strengths and skill sets and people who can easily get along with each other. A multi-generational group can be a great asset for any organization. Unfortunately, since the economy collapsed in 2009 and work became both scarce and not as well paid, people of all generations have been duking it out for what is there - and blaming each other for what isn't.

Anyone in charge of managing a combination of Boomers, Gen Xers, and Millennials should remember that people are individuals before they are members of their generations. Not all Millennials are plugged in 24 hours a day, and not all Boomers are putting in the last days until they can get their 30-year company pins. Patterns are a useful jumping off point, but they are not everything.

If your company workplace is experiencing generational tension, try to arrange some opportunities for communication. This may be outings or social events, it could be a part of regularly scheduled meetings too. Sometimes getting to know each other outside of work expectations is the best way to break down boundaries and get people to know and empathize with each other. This could be accomplished as simply as forming a baseball team or a bowling league or by creating a company vegetable or herb garden.

Remember, the more your employees see and like each other as people, the less likely they will be to mentally assign each other to generational groups and stereotype. This holds true for any other type of group tension as well which is why fostering both communication and a sense of community is critical for building a cooperative workforce in your company or organization.

White papers are more important than you think

Do "White Papers" actual drive sales? And if so, when are white papers appropriate? These are not insignificant questions given that a fair amount of time and effort go into their creation.

Why Create a White Paper?

The term white paper refers to an educational report roughly about four to 10 pages in length. In general, these reports are geared towards helping your potential customers solve a problem. White papers commonly summarize survey research or delve into a product or service relevant to a particular market segment.

As with most marketing collateral, white papers help attract qualified leads. Which is often why interested parties must exchange information about themselves in order to obtain such material. It essence, such material is "gated" to the user until they meet this precondition. In contrast, some white papers are widely distributed for the sake of helping establish a company's expertise on a particular topic. And as a result, they build confidence with potential buyers.

White papers are occasionally used by business-to-consumer companies - but they won't be called by that term. That's simply because the term can seem rather intimidating, almost as if a large, comprehensive study is at hand. As a result, many business-to consumer studies are labelled as a "report." And, as might be expected, these reports are somewhat shorter in length.

In contrast, business-to-business companies often employ white papers. Especially where expertise in a particular field is critical. Not incidentally, they're a frequently touted in such fields as telecommunications, biotech, manufacturing, etc. In In the end, white papers can help educate your audience and serve to subtly show why your company's expertise is critical for a job.

Do White Papers Drive Sales?

Although somewhat dated, a 2008 Eccolo Media Technology Survey found that nearly half (44%) of technology buyers found white papers to be very influential in their decision-making. In contrast, product brochures had the least influence upon decision-makers. Indeed, white papers are the most frequently used marketing collateral employed by companies (68%). And perhaps contrary to expectation, respondents noted that videos and podcasts were far less used (28%).

Not incidentally, white papers influence buyers very early in their decision making process. More than half of respondents (56%) noted that they review such material in the "pre-sale" stage the buying process. Obviously, when buyers have a wide variety of options to pursue, both white papers and case studies can be critical in making or breaking a future sale.

Should small businesses focus more marketing dollars on mobile marketing?

Responses from a number of recent surveys have revealed a strong preference from marketers for email marketing over and above other types of digital marketing tactics. This was again confirmed by a September survey done by Ascend2 and its research partners. In this survey marketers ranked email marketing as "Most Effective" (54%), while only 11% of marketers surveyed thought email marketing was "Most Difficult." It would naturally follow then, that most marketers would highly encourage their clients to pursue email marketing tactics over other types of digital marketing. Website and blog marketing and SEO marketing were also deemed "Most Effective" by 48% and 47% respectively. Social media marketing was ranked "Most Difficult" by 49% of respondents. Mobile/SMS marketing had the lowest overall ranking with only 9% of respondents rating it "Most Effective" and 34% "Most Difficult."

It would seem, at this time, that there will not be a big push for mobile marketing coming from most marketers. From their responses, they see it as not worth the effort.

But is it wise for businesses to overlook mobile marketing given how plugged in consumers -particularly those in the Millennial and Generation X generations - are? The fact is, people of all ages, not just that coveted demographic of 18-34, are daily becoming more dependent on their smartphones and their mobile devices to navigate numerous aspects of their lives. Around half of all internet searches are done on mobile phones. And the existence of smartphones and mobile connectivity is itself spawning new industries that people are seamlessly incorporating into their lifestyles. The popular and controversial sharing economy app Uber relies upon mobile technology to function. So does Pandora.

When forecasting marketing trends for 2015, ReadyPlanet.com heavily emphasized the importance of mobile media. While some industry experts have been loudly declaring the importance of mobile marketing for years, this message appears not to have reached the marketers in the trenches. But as with all things, there is a tipping point, and it could soon be reached. Currently there is significant spending on mobile marketing among large corporations, but as of now it seems to be poorly incorporated with other marketing efforts and not a part of most's businesses overall picture.

If your business is spending on digital marketing, it is certainly worth reexamining how much of this budget is allocated to spending on mobile marketing and if mobile marketing is functioning alongside your company's marketing as a whole. This is not a fad. Next time you are out in public, look at everyone surrounding you and count the smartphones. Then ask yourself if you're focusing enough of your business's marketing budget on mobile. The answer is very likely no.

How small businesses are grappling with the Affordable Care Act a year later

Last October 1st, the website for the Affordable Care Act healthcare exchanges premiered, and many small business owners hoped that the new system would provide some relief for the staggering costs healthcare insurance was laying across their shoulders. Unfortunately, the website rollout performed more poorly than expected and the implementation of the new healthcare law - and any relief it would give small businesses - was significantly delayed. Because the website didn't function, not enough people were enrolled by the target date in December, and the administration pushed back numerous deadlines and weakened compliance regulations. How this will play out for individual business owners, we will only discover with the passage of time and as the effects of the new law come down this compromised pipeline.

At this time the requirement that small businesses must provide insurance coverage to their full-time employees only applies in 2015 to businesses that have 100 or more employees (full-time being defined as working an average of 30 or more hours per week). The cost of this insurance must also be less than 9.5 percent of their income. Businesses have the option of providing their full-time employees with coverage or paying a per-employee assessment fine. In 2016, businesses with over 50 full-time employees will have to be compliant or face paying the fine.

Since 96 percent of U.S. businesses have fewer than 50 full-time employees, most small businesses will not have to worry about Affordable Care Act compliance for the foreseeable future, although many businesses have cut either hours or workers in anticipation of the higher costs to them either way. Ironically enough, many government jobs in schools, city government, and libraries have also been cut because of budgetary constraints.

Meanwhile, the costs of both healthcare and health insurance continue to climb. Many employers already offer their workers insurance benefits and are finding it challenging to pay higher costs in an economy that continues to stagnate. Many of these are choosing to offer lower-cost, higher-deductible plans to their employees. Thirty-two percent of firms will only be offering high-deductible plans, shifting more costs to their workers. As long as workers are offered the option of a plan that meets Affordable Care Act guidelines, businesses will not have to pay a fine - regardless of whether employees choose to enroll in these plans.

Some employers are offering incentives for workers who voluntarily shop around for cheaper healthcare options or who take part in lifestyle betterment programs or utilize their preventative care more. High cost, high benefit programs will be taxed beginning in 2018, so employers who have provided their workers with "Cadillac" plans have incentives to either educate their workers on the costs of these plans or slowly transition them to new health insurance realities.

Other businesses have decided to forego offering insurance altogether and pay the fines which are less expensive than the cost of health insurance. As yet there is not consensus on what the best options are as the administration continues to delay mandates and economic conditions change.

Online remarketing as a business tool

If you've (almost) purchased an item from Amazon or some other large retailer lately, you might be forgiven for thinking that the retailer is tracking you online and asking yourself, "How does the internet know I almost bought [insert item here]?"  The answer involves the computer cookies (online trackers) in your browser. They allow for remarketing, a type of advertising that gives you "a chance to reconnect with visitors who have abandoned your site without converting through Display Network advertising." 

With remarketing, an advertiser can promote specific ads related to the products or interests that online visitors have already expressed. For undecided or procrastinating visitors, remarketing can help remind them about products they previously were curious about. So for example, a visitor who abandons her shopping cart with a product in it will see the same product in a advertisement elsewhere online - with a discount coupon attached. Sellers only pay for the ad when someone clicks on it. 

People shop all the time for products they are not entirely certain about but could easily, with a bit of a nudge,  be persuaded to buy. A garden tool may seem like a pricey splurge on Amazon, perhaps, but more like a necessity when that gardener is reading a popular garden blog or chatting with fellow vegetable enthusiasts in a Facebook group.

Implementing remarketing is fairly simple. First, a business owner must sign up with Google AdWords and create an advertisement. Once this ad has been created, the retailer can target different audiences for remarketing.  So instance, a retailer can serve ads to potential customers who have visited their website as well as those who have already purchased their product. Or they may even target the former, excluding the latter. With Google Adwords, a retailer simply needs to select the audience that it would like to seek out, pinpointing for greater success. 

Remarketing is an especially effective advertising tool for those people who wish to improve their shopping cart abandonment rate. It's an unobtrusive tool. Most people will not even register this gentle reminder, making it more like a note from Mom rather than a bounty hunter's chase. But, if used correctly, it will improve your conversion rate, and it should be employed by anyone who believes AdWords is an essential part of their marketing efforts. 

A business owner essential: properly vetting employees

What do potential employers have to do to properly vet an employee? Obviously carefully constructing a set of interview questions to gauge whether the applicant is a good fit is paramount. Small businesses in the midst of reviewing applicants will generally ask questions relating to previous job experience, personal characteristics, and skill sets. Indeed, asking an applicant how they found out about an open position can very revealing. Applicants simply looking for a job will typically reply that they found the position after viewing general job listings. A better bet is to find an applicant who has taken the initiative to seek out your company. They generally have a stronger interest in helping your company achieve success.

In order to find the right fit, strong applicants should be amenable to the company’s culture.  Likewise, employers should ask applicants what they like about their current job, what their preferred career path looks like, and how their skill sets have might be helpful in the position.

However, properly vetting an applicant requires more than an interview or even calling references. If an applicant gives satisfactory answers to an employer’s interview questions, time and energy can be expended on the next step in the process. That is, an employer should take a close look at an employees prior connections, credit history, arrest record (or lack thereof), certifications, and of course, employment history. However, a potential employee must sign a consent form allowing the company to conduct this kind of investigation.

If the position your company is hiring for requires multiple, discreet levels of vetting, a professional employment agency can be hired to conduct background screenings for applicants. Additionally, if your business needs to protect against any rist, a surety company may issue a bond (a surety bond is a promise to pay one party a certain amount if a second party fails to meet a contractual obligation.) A bond protects the payee against any kind of loss if the payers fails to meet an obligation.

Most interviews will not these sorts of require advanced levels of checking, but, on the other hand, an untrustworthy or, heaven forbid, criminal employee can cause a large amount of damage to a company in a small period of time. Due diligence is always recommended.

Why your business needs insurance

When creating a business the last thing a business owner wants to think about is additional, seemingly unnecessary expenses - especially if those expenses do not contribute in any way to the bottom line. However, all business owners face risks in one form or another, so protecting both their investment and personal assets is essential. 

A forward-thinking small business owner understands the various risks that may befall his business. Accordingly, he wisely takes proactive measures to mitigate against any financial loss arising from such events.  What risks may occur during the course of normal business operations? It varies, of course, depending on the type of business operations involved, however insurance coverage exists for property damage, legal liability, and employee-related risks. When people think of insurance, they generally think of items being insured against theft or damage. A jewelry store would need to be able to cover for the loss of stolen diamonds, for instance. But physical property is not a business owner's only vulnerability. Consider what might happen if one of your employees is injured on the job, a natural disaster occurs, or a business partner dies.  Protecting your investment requires purchasing enough insurance to cover your assets, material or otherwise. Although a business owner's personal assets are protected if the business is a limited liability company (LLC) or a corporation, neither is an adequate substitute for liability insurance to cover a business from losses. 

Additionally, we live in a very litigious society where nothing truly disastrous must occur for someone to file a lawsuit. The expense of hiring a lawyer to fight off nuisance suit can be the different between a start up business in the black and one in the red. Consider your customer base - is it composed of people who might try to play and win the lawsuit lottery? If so, you must insure.

Even if a business owners decides against seeking insurance, financial lenders and investors will often require various forms of insurance (fire, flood, life) before any business transaction occurs.  They simply do not wish to share the financial risk associated with any unexpected events that may befall a business. 

State governments also require businesses with employees to have a certain amount of some kinds of insurance to cover employees who seek unemployment, disability, or workers' compensation. Companies that employ road vehicles for business operations are generally required by the state to purchase commercial auto insurance as well. 

Do your homework. If you run your business yourself, at home, and do not have merchandise or stock to sell or store, your insurance needs may be few. But for all the other business owners who make and sell products, employ other to help, and rent or own facilities to do so in, you need to consult an agent about what coverage is best for your needs. 

Making adjustments for best workplace environments

As discussed before, the newest trend in office design is the collaborative open layout in which employees are encouraged to work together and share ideas.  This new trend stems from the surge of Millennials into the workforce using technology continuously.  An open workplace reflects the environment of a classroom or coffee shop in which employees bounce ideas off each other and think creatively by communicating with those around them. Open environments require smaller rental space commitments, and are less expensive to clean, as well as heat and cool and so are popular with business owners cutting costs. Although the open concept may work well for extroverts who are inspired by visual interaction and energized by being around others, for introverts these surroundings may prove to be more a hindrance to productivity than a motivator.  

There is a distinct difference between the way introverts and extroverts tend to function in office space.  Some extroverts are extremely productive and creative when they are surrounded by other employees throughout the workday; but many introverts need a quiet office to achieve the greatest productivity.  There must be a way for both types of employees to achieve optimal performance at work.

It's a good idea for businesses to periodically assess what kind of social environment their employees are creating. Study work patterns, and look for problematic workplace interactions (these are often not hidden!). Survey your employees both formally and informally. At least some of the problems your business experiences may stem directly from workplace arrangements, and those can be surprisingly easy to change through desk swaps or targeted scheduling. 

Some businesses also allow their employees the option of working from home.  The employer is still able to monitor the employee’s progress day to day through various tools such as telecommunicating, Skype, or email.  Another option is to provide both an open concept layout for those who work better in a group setting and a closed, quiet room for those who work better alone.  In a decently sized office space, a separation of rooms can be achieved with removable walls and office furniture that is easy to move.  
Conference rooms are another space to use for group work. They often go unused and could be added to the mixed of differently used work environments.  

While Millennials have a reputation for being more comfortable in groups, there are, of course, plenty of introverted representatives of Gen Y. Workers from other generations will also appreciate the option of being able to work in private and focus entirely on one project at least part of the time. Using your office space in the best way to maximize productivity of your employees is extremely important both for productivity and the maintenance of healthy work relationships. Providing a space that all people feel comfortable will benefit everyone in your company. Do not be afraid to try a number of solutions in your attempts to create the best arrangements. Long term workplace harmony is worth a bit of construction dust.

How Does Your Small Business Cut Energy Costs?

Small businesses have endless expenses, but one of the largest is the cost of energy.  Almost every small business must use energy in one way or another.  For small, local companies that are competing with larger conglomerates, fluctuating energy costs can be quite a hindrance, to plan for and to pay for.  Businesses are continuously looking for ways to cut back on the cost of energy.  Particularly in the wake of rising energy costs such as gas prices, most small businesses are forced to find new ways to ensure they are not losing too much money.  

Small companies that rely heavily on transportation and delivery can save money on energy costs by doing some simple planning ahead.  For trips that require numerous stops, companies should map out the most effective route that encompasses all needed destinations.  Some businesses tack on fuel surcharges when making deliveries at times when energy costs increase and then remove them when they decrease.  This trend began in 2008 when gas prices sky-rocketed.  

In the age of online communication, most meetings can be done via Skype, Google Chat, or in conference call.  Instead of using the money to pay for fuel to drive to meetings, small businesses are choosing to communicate via the internet, setting up meetings online or over the phone. Some businesses have chosen to eliminate their land line and do all of their telephone communication either by cell phone or VoIP.

Another crucial way to save money when energy costs fluctuate is maintaining your business vehicles.  Make sure, particularly after harsh winters, that engines are finely tuned, oil has been changed, and tire pressure is where it should be.  All of these can positively influence your car’s gas mileage.  When gas prices rise, the costs of shipped goods also increases. Small businesses especially must find ways to combat the expense of energy, so some choose to increase the price of their product or service.  Even a small increase can help balance the books.  

Gas prices fluctuate for several reasons.  Generally, the change in season from winter to spring brings more drivers out, which causes prices to rise.  The trend is that prices decrease after the initial spike in beginning of the summer, but after Memorial day will increase again with the amount of travelers on the roads.  Prices also follow the fluctuation of global oil costs; rising and falling when they do.  Another reason prices may rise is seasonal maintenance and upkeep of refineries.  

Small businesses have obvious budget adjustments to make when it comes to fluctuating energy costs.  There are some obvious ways companies cut energy costs such as regular vehicle maintenance.  But also underlying ways that may not be as apparent to the consumer eye but are in direct correlation to the increase in gas
prices, such as product cost inflation.  However small businesses choose to adjust; energy costs have a large impact on net income and in turn, on our local economy.

Small Businesses and Rising Gas Prices

Rising gas prices can be stifling for all of us, but the effects for small businesses can be much worse.  Numerous factors play into the negative outcome that spikes in gas prices can bring to small businesses.  Companies that rely on local transportation and delivery as a large part of their profit can be hit very hard.  

David Parsons, president and CEO of AAA Carolinas stated, “Spring is a difficult time for drivers, when gas prices typically rise due to refinery maintenance.  The tightened supply throughout the country results in higher gas prices.”  An increase in prices can also be correlated to the higher demand of drivers after the brutal winter most of the country experienced this year.  Seasonal maintenance at refineries is an additional factor for increasing gas prices.  

Small businesses that are already competing with large conglomerates have a more difficult time coping with the spike in gas prices that can come seasonally.  Delivery costs for businesses that base much of their profit on the transportation of their product suffer exponentially when gas prices increase.  They look for other ways to cut costs which can come as cutbacks, shorter business hours, even moving manufacturing out of the United States to countries such as Asia.  For some small businesses, an increase in gas prices may mean an increase in the cost of their product to make up the difference.  

Fuel usage is a major expense for small, local companies.  Especially businesses that focus on packing and delivery as the main source of their profits can be highly affected by soaring gas prices.  The arrival of spring can mean greater business and easier travel for small companies, particularly after this year's horrendous winter weather.  Increased gas prices work against this potential of growth for small companies.  

The trend that gas prices generally follow is to rise in the spring, come back down around Memorial Day, and then increase again through the summer. Businesses must find ways to work around the spikes and sustained rises.  By cutting costs, carpooling, organizing deliveries accordingly, and preparing ahead of time, local companies can generate as much profit as possible during the high-cost period.  Although they adjust, small businesses are one of the sectors of the economy most affected by gas spikes. And since much of business consists of small businesses, this problem affects all of us.

Does your business need a lawyer?

Every business owner is loath to spend income on unnecessary expenses, particularly smaller, newer or home-based businesses on thin margins who have yet to make much profit. It's much more satisfying to pay someone to make you an impressive website or even keep your books. However, the United States currently has a very litigious climate; as a country we spend about 2.2 percent of the gross domestic product, approximately $1000 for each person on tort litigation. In these circumstances finding a good lawyer is like hiring a bodyguard - with his presence and expertise, he'll stop attacks from happening as well as deal with any that do actually occur.

There are a number of areas a small business owner will need to consult a lawyer about: contracts, taxes and licensing, and real estate matters such as purchasing or leasing property or equipment. Over time matters that should be rather simple have become increasingly more complex because of other lawsuits. The legalese on these documents gets denser as sued parties attempt to reassert control. If the average person doesn't understand a basic user contract for an internet site like Facebook, how is he expected to know what's been inserted into his rental contract as a disincentive for his company ever to sever the relationship? No one wants to sign a lease from the Hotel California, after all.

At the outset of your business, you should consult an attorney about the legal basics of business formation. A number of things can be done without a lawyer's involvement. You don't need a lawyer to name your business, claim a trademark, hire employees, create buy-sell agreements, or file initial paperwork, but the Small Business Administration recommends consulting a lawyer to:

• Form a corporation
• File a patent
• Buy or sell a business
• Handle litigation

Particularly when dealing with litigation, it's advisable to have an attorney who is already familiar with your business and, preferably, has the kind of clout necessary to intimidate instigators of frivolous lawsuits or ambulance chasing. If you have not yet consulted an attorney to represent your business at least in times of legal necessity, start asking around for recommendations now - because when you need one, you really need one.

Is it time for your business to ditch the landline?

CDC data from the 2013 National Health Interview Survey show that nearly 40% of American homes now use only cell phones for telephone communication. An additional 15.7% of the population had landlines, but still received all or almost all their calls on wireless telephones. Poor Americans reported higher rates of complete dependence on wireless phones - 55 percent of adults below the poverty level had only wireless phones at home. Having a landline and a cell phone is a double expense, after all, and when money is tight can't always be justified.

Many small businesses are run from home and have limited budgets. Small business owners may feel there is no good reason to add a landline number and pay another bill. But having a landline has its advantages, including:

• Clarity of sound - background noise is far more minimal on a traditional landline and voice quality is better than on cell phones or VoIP. 
• Accessibility - landlines do not need a clear wireless signal or an internet connection to operate.
• Sturdiness - by virtue of being less portable, landline telephones last longer and get lost less often. Their batteries also last longer. Those old phones your grandparents had in the 1970s still probably work. Does the cellphone you dropped in the toilet or left in your unlocked car?
• Features - many of the features businesses have come to expect from telephone systems are only available on pricier wireless systems.

There are, of course, advantages to VoIP (Voice over Internet Protocol) and cell phones including significant cost reduction, portability, and the ability to route multiple numbers to one phone - a clear advantage to a businessman on the go. 

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Still it's clear that communication technology is changing rapidly and will continue to change. At some point, even those who are entirely satisfied with the old way of calling will be forced to update their systems because telecommunications companies will find it prohibitively expensive to offer options that satisfy every user, from techie to Luddite. So small businesses should keep the shift in technology in mind for tomorrow, even they hold on to their landlines today.