LaKesha Womack

Archive for the tag “Employees”

14 Sep 2010

Interns, Employees and Independent Contractors

As your small business grows, you may begin to seek help with administrative tasks, marketing execution and even financial management.   There are many routes that you can take to find help and each comes with a set of pros and cons.  Listed below are the three most common and a few advantages and disadvantages to consider.  Remember, every business is different and you have to make the best decision for your business type while keeping your budget in mind.

Interns

Many business owners want to hire interns because they assume that they will work for free.  This is not always the case.  Despite the decline in the job market, many interns are still not willing to work for free.  Some employers have become crafty and devised a means to make the relationship mutually beneficial (as if job experience isn’t enough).  When seeking an intern, you must realize that many times, these individuals are interning because they have little to no experience in their field and are using you and your organization as a test drive.  It will be very difficult to find someone with experience that will also be willing to work for little or no pay.

Pros

  • fresh ideas
  • will generally work at no cost or for a small salary
  • usually eager to learn about industry

Cons

  • may not have very much experience
  • may not leave for a better offer
  • may have a limited availability

Employees

Taking on an employee is a huge responsibility.  Not only are you responsible for training them and making sure they are doing their job, you are also financially responsible for ensuring their payroll expenses are paid on a regular basis.  Take a close look at your budget and assess how much you are willing and able to pay before creating your job description.  Most people expect to be compensated based on the amount of work and responsibility that is required for the position.  Don’t create a long list of tasks and attempt to pay the minimum salary because it will be unlikely that you will fill the position with a qualified individual.

Pros

  • can be full-time or part-time
  • will typically be dedicated to your company during their work hours
  • should require minimal training, dependent on the position

Cons

  • required to pay taxes and other payroll expenses
  • can be difficult to terminate depending on employment laws in your state
  • must be able to consistently pay their payroll expenses (salary, taxes, benefits, etc)

Independent Contractors

Outsourcing projects can be extremely advantageous for small businesses because an independent contractor is usually knowledgable in their industry, able to work independently and will complete your project in a timely manner.  However, you must be careful about the employees that you hire as “independent contractors”.  The IRS has specific guidelines about what constitutes an IC versus an employee.  You can not hire someone as an IC if it is a position that would generally be filled by an employee.  What does that mean?  You can’t call someone an IC just to avoid paying their payroll expense.

Pros

  • usually professionals in their field, should not require any training
  • not responsible for taxes or expenses
  • project oriented

Cons

  • will also be working on other projects so you may not be their priority
  • generally will have a contractual obligation to work on a specific issue or project
  • rate may be higher than you would pay an employee

Please share your experiences with hiring these types of professionals or working in one of these capacities.

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31 Aug 2010
5 Comments

5 Areas for Business Reinvestment

It really bothers me to see an established business falling apart.  Have you ever been into one of these businesses that’s been around for five, ten or twenty years… and it shows?

As a business owner, your business is your greatest asset and you have to take care of it.  In today’s society, you have to not only offer the best products and services but you have to also look like the best.  Here are five areas that you must reinvest in to keep your business at the head of the pack.

  1. Image is everything. If you have a physical location, it is imperative that your location is spotless.  Even if you can’t or don’t like to deep clean, hire a cleaning company to come in weekly or monthly to scrub your business down.  One of my pet peeves is going into a restaurant with dusty baseboards or dirty curtains.  If the part of the business that is visible to me is not up to par, I can not imagine what is happening behind the scenes.  If you are  not sure about the appearance of your business, ask a few of your close friends (that you can trust to be honest) to give you an examination.  Don’t be offended if they make some suggestions that you didn’t expect but commit yourself to improving your business appearance.
  2. Train your employees. Many business owners discount the impact that trained employees can have on their business.  I have noticed that once an employee is hired, the manager may spend a couple of days training the employee then the employee is on their own to make something happen.  This should never be your strategy when hiring employees.  Each week you should seek to teach your employees something new about the company and/or products/services that your company offers.  The more engaged your employees are, the better ambassadors they will be for your company.  However, it is difficult to get people engaged about something that they know very little about.  Have you noticed how enthusiastic employees can be when they first start working with an organization and then it seems like all of that excitement dies?  Many times there is a direct correlation between their thirst for knowledge about their new venture and your ability to quench that thirst.  Once you stop satisfying their need, they get bored and disinterested.
  3. Customer relationship management. You need some way to maintain your customer information and to be able to keep it up to date.  Having a guest book at your register is cool but what do you do with the information?  Requesting a name and phone number at check out is great but do you ever use the information?  You should invest in a system that allows you to capture your customer’s information and then a system to follow-up with coupons, information or whatever is relevant to your business.  People expect that if they give you their information, they are going to receive something in return.  Give them what they want.

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  4. Don’t take marketing shortcuts. There is a difference between taking short cuts and saving money.  Taking short cuts is printing business cards on a home computer that you designed yourself.  Yes, you can and it will save money but the finished product is rarely, if ever, competitive with a professional product that you can buy inexpensively from a company like VistaPrint.  Even with brochures and flyers, you can print them yourself but people make decisions about the quality of your product/service based on what is in front of them.  If you are not willing to invest in your business, then why should they give you their money?

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  5. Networking. You must get out and tell people what you do.  The first step should be to join your local Chamber of Commerce.  In most cities, they are the pulse of the business community.  They are the ones with the database of all businesses in the city and can connect you with the activities going  on your city.  You should also look for other opportunities to spread the word about your business in person and online.  Submitting press releases about events happening in your company or industry may cost a little but can quickly establish you as an industry leader thus enhancing the reputation of your company.

I hope these tips help to build your small business.  Whether you are just getting started or have been in business for years, you need to have a strategy to keep your business fresh in the minds of your customer.  Contact me TODAY to schedule a complimentary consultation to discuss areas that you can reinvest in your business …. contact@lakeshawomack.com

Yes, these are paid advertisements…

Posted in Business Dollars and Sense and tagged , , , , , , , , , , , , , , , , , , , , , , ,
24 Aug 2010
1 Comment

Choosing the right employee title

There are so many decisions that business owners have to make to establish and grow their business.  One of those decision is choosing the right employee title once you are ready to bring assistance into the business.  I have noticed some people having difficulties filling job positions for a variety of reasons, however today we will deal with employee titles.

When working in a small company, it may be tempting to empower your employees through their titles but you are actually doing them a disservice if they ever leave your company.  Let’s say, your best friend has a few years of marketing experience and you can’t afford to pay him over $30,000 so you decide to compensate by labeling him the Director of Marketing.  This title is out of line with his experience and salary level and will make it difficult for him to find a comparable position at another company.  Although him leaving and looking for work elsewhere really isn’t your problem, you should always be setting yourself and others up for success.

Let’s take a look at a few job titles:

  • Assistant: as the title implies this person will be assisting someone with some things; the position will generally have more administrative tasks assigned and they will report to someone on a regular basis; the salary range for this position ranges between $24,000 and $36,000 depending on the size of the company and the scope of responsibilities
  • Manager: again, as the title implies this person will be responsible for managing a part of your company, they will generally have the responsibility of ensuring projects are complete and may have employees and/or assistants reporting to them; the salary range for this position is typically between $30,000 and $60,000 depending on the size of the company and scope of the projects they are responsible for overseeing
  • Director: these persons will assist in directing the organization toward the mission and/or goals, they spend a great of time strategizing, meeting with other directors to ensure  a cohesive plan for the organization is established and providing directives to the Managers to carry out, Director can also imply someone who sits on a Board of Directors (typically only Directors of for-profit organizations are paid while most Directors of not-for-profits work as volunteers); the salary range for Directors usually starts around $60,000 and escalate depending on the size of the company and scope of operations they are responsible for directing
  • Vice-President: a company will not typically have very many Vice-Presidents unless it is large and there is a need for the Directors to have someone to report to; the salary range is generally near or in the six-figure range and the scope of their responsibilities will vary depending on the overall needs of the organization
  • President: this person is responsible for the overall operations of the company; typically the Vice-Presidents or Directors will report to the President and they will create the mission, vision and goals for the organization; the President is often the Owner of the business, however, larger corporations may hire someone to fill this position; if the position is a hired employee the salary will normally be in the six-figure range but business owners sometimes take a lower salary so that they can reinvest in the business

Obviously there are more variations however these are the most common and caution should be taken when hiring people using these titles.  The job title implies many things and part of finding the right employees is making sure they can live up to your expectations.

Posted in Business Dollars and Sense and tagged , , , , , , , , , ,
17 Aug 2010
1 Comment

Which stage of business ownership are you in?

During my Twitter chat (#BOSSchat) with The BOSS Network last week, a very interesting question was posed: what’s the difference between being self-employed and a business owner?  I believe there are four stages of being in business for yourself.

Stage One – Self EmployedYahoo! Merchant Solutions - 120x600
Most people start out being self-employed.  At this stage you have a product and/or service to offer and will employ yourself to do the majority of the work.  You may have people who help you but the bulk of the responsibility for making your ship sail is in your hands.  You don’t have much time away from the business and probably feel as though it is consuming your life.  It is difficult to strike a proper work/life balance but you are not sure that you trust anyone else with your baby/business.  This stage is the most frustrating but survival is the key to your success.

Stage Two – Business Owner
 You have now progressed to having a manager or someone to take over the bulk of the responsibilities for your organization, however you are still involved in the day-to-day operations of the business.  You don’t feel totally comfortable delegating tasks to others but realize that it is necessary for you to be successful.  At this level, you should take advantage of opportunities to leave the business and network in your community.  You have successfully established your brand, now is time to put a face with a logo.  You may also begin to consider what is next for yourself personally and professionally.

Stage Three – Entrepreneur
 Most business owners or self-employed people that I know have visions of owning more than one business.  People toss around the word “entrepreneur” to define anyone who owns a business, however, I believe you become an entrepreneur once you are able to successfully establish a business AND begin working on additional projects whether professional or community based.  These opportunities will provide you with additional leadership skills and business connections that can help make some of your goals attainable.  As an entrepreneur, you may now feel the freedom to travel to travel to industry related events with the confidence that you have created a solid foundation within your business and that things will continue as you have envisioned.

Stage Four - Philanthropist
 Once you have had a chance to establish yourself and build a successful business, you should have some connections and some money in the bank.  I believe that most of us strive to make a difference in our community.  How do you do that?  Money and influence.  Do you see the connection?  Many times we see older people in our communities making decisions and being power players.  This is because they have amassed the connections and capital to have influence over decisions.  At this stage, people are coming to you seeking advice, financial assistance and consider you an industry leader.

Which stage of business ownership are you in?  Are you ready to move to the next stage?  If so, contact me ~ contact@lakeshawomack.com ~ for a one hour complimentary consultation to discuss strategies to help you achieve your goals.

Posted in Business Dollars and Sense and tagged , , , , , , , ,
06 Apr 2010

The government will pay you to hire workers… no joke

I have business people come to me all of the time asking for a “grant” for their business.  Although I don’t think they all believe me, I have to break the harsh news that grants are not provided to for-profit businesses.  No one wants to give you money to make money without wanting something in return.  This was my thinking when I heard about the Temporary Assistance for Needy Families (TANF) Jobs Plus program.  Initially, I only heard that you could be reimbursed for 100% of your worker’s salary.  I was extremely skeptical because I find it hard to believe that you can get anything in life for free.  However, this program seems like it could be a huge benefit for small business owners as well as the people receiving federal assistance and wanting to reenter the workforce.

I did some research and found out how the program works.  Here are a few of the facts.  For more information contact your local Department of Human Resources (DHR) or Department of Human Services (DHS).

  • The program is a subsidized work program that is administered by your DHR or DHS.  There may be a few variations of the program’s details depending on your state of residency.
  • The employer determines the wage rate and pays the employee directly.  The rate should be at least or above minimum wage.
  • There is no requirement for the employer to hire the worker at the end of the subsidy program, which typically lasts about six months.
  • Employers are reimbursed through their state DHR or DHS for the employees gross wages which includes taxes and worker’s compensation for a maximum of 26 weeks.
  • Employers can not replace their current workforce with JOBS workers.
  • The employees must be placed on the employer’s payroll and are considered temporary workers until the end of their subsidy.  Then the worker may be released or hired as a permanent employee.
  • Some states limit the number of JOBS employees that compose your workforce.
  • In many states, the TANF recipients can continue to receive benefits while receiving the subsidy to assist in the workforce transition.

How can you take advantage of this program?

  1. Contact your local DHR or DHS office with the job description for your open position
  2. DHR/DHS will refer eligible TANF clients to you for an interview
  3. You select a candidate – it is wise to interview TANF and nonTANF candidates to ensure you fill the position with the best possible candidate and not just the cheapest
  4. If you decided to hire the TANF worker, contact your DHR/DHS case worker to begin the paperwork required to receive your reimbursement.

I hope this information helps to not only get more people back into the workforce but also to demystify the stigma that everyone receiving “welfare” doesn’t want to work.  There are some honest and hard-working people who have fallen on hard times and need a hand up.  However, with the difficulties in our economy, you may need help but not be able to afford it.  That help could take your business to the next level and hopefully this program can serve as a catalyst in that movement forward.

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