Idea of the Day^®

“There are two things people want more than sex and money: recognition and praise.” — Mary Kay Ash, Founder of Mary Kay Cosmetics Small business owners know it’s important to recognize the achievements of employees. It’s been reported companies with formal recognition programs have 31% less turnover and are 12 times more likely to have strong business outcomes. But what about recognition for companies and their owners? It is important too. What form can this recognition take? Importance of recognizing small business owners Small business owners self-define their success and don’t necessarily seek out recognition or praise. Success may be in […]

An ingenious, original idea is a central part of any successful business. You may think you’ve come up with a brilliant new idea for a business, but you could also lack experience in launching and managing your own business organization. Try to ensure your idea is as unique as possible and avoid entering an overly saturated market where you may easily get outcompeted by other companies operating in the same space. Embrace your business idea and try to find your own lane. To support you, we’ve come up with some ideas on what you should do next if you think […]

Now may be the time for small businesses to hunker down and prepare for worse times to come. While the pandemic may no longer be a significant factor in planning, there’s talk of a recession—will it or won’t it happen? No one knows for sure, but some economic indicators are pointing toward a recession, or at least very slow growth period. Economic indicators There are various economic indicators that business owners can watch to know whether it’s a good time to expand or to bide your time. The traditional 5 include: Gross national product (GDP)—the market value of all final […]

Summer begins this year on June 21 and runs through September 22. It is a period of heat and a time of opportunity. For some seasonal businesses, it represents their entire year. Whatever your business and wherever you’re located, there’s sure to be some seasonal impact. Here are some business ideas for summer Be sure workers are safe Exposure to heat—outdoors and indoors—poses a health risk to workers. OSHA has guidance for companies to help prevent illness from the heat. Also, OSHA launched a National Emphasis Program (NEP) on heat; here’s a fact sheet. Prepare for hurricanes The Atlantic hurricane season […]

With Father’s Day approaching, I couldn’t help but think about my dad. He died many years ago, but I still miss him. One thing that came to mind about him and made me chuckle was his apparent inability to carry cash. It prompted me to recall some interesting situations and to think more about cash then and now. No cash in his pocket My dad just never had any money with him, even though he had the wherewithal to do so. He had his own business—a machine shop—and was a solid middle-class guy. But he usually went cashless. He rarely […]

If you’re about to start a new business or have started up but are still finding your way, here’s a statistic that might make your eyes water. Around 20% of new enterprises fail in the first two years after opening, while 45% close during the first five years. It gets worse: Only 25% of businesses last for 15 years or more. One of the biggest reasons behind all these failures? Problems with cash flow. Businesses often have a tough time collecting invoices from slow-paying customers, impacting their bottom line. However, it’s not all doom and gloom. 1. Cash Flow Is […]

Golden handcuffs are benefits provided by an employer to discourage an employee from leaving the company to take another job. Golden handcuffs have a bad connotation; it’s implied that they unhappily tie an employee to a job. But golden handcuffs may be a good strategy during this period of the Great Resignation and can be done in such a way that benefits both the employee and the company. Develop a strategy that benefits both the employee and the company. Intangibles Golden handcuffs traditionally are viewed as monetary. But in today’s environment, intangibles can be a form of non-monetary compensation. Technically, […]

Merriam-Webster defines intellectual property, or IP, as “property (as an idea, invention, or process) that derives from the work of the mind or intellect; also: an application, right, or registration relating to this.” IP can be a boon to a business (think about the Coca Cola formula, the Nike trademark, and the patent for Dropbox). Unfortunately, there’s a great deal of theft of U.S. intellectual property, which was estimated to be $822.3 billion in 2021. This can be stealing trade secrets, counterfeiting goods, and pirating software and video games. While there may be no way to fully protect your IP, there […]

Labor shortages are nothing new, but the COVID-19 pandemic has sparked significant shortages across the country and several industries. From logistics and trucking to food and beverages, many sectors have more unfilled job openings than people to fill them. While there is no one perfect solution businesses can use to overcome a worker shortage, implementing new technologies can alleviate some of the issues stemming from the shortage. Continue reading to learn about how businesses use technology to combat their workforce shortages. Understanding U.S. Labor Shortages Aside from the pandemic, one factor contributing to increases in labor shortages is The Great […]

In 1997, I wrote The Complete Idiot’s Guide to Starting a Home-Based Business, which subsequently went through 3 editions. By the time I wrote the book, I’d already been working from home for a number of years. This took place before the internet, before fax machines, and before working from home was a concept embraced by the business world. Now, 2 years into COVID-19 and the widespread use of remote work arrangements, I thought it would be fun to share some of my experiences with working from home. They may prove to be valuable lessons to owners and employees now […]

Did you know that 95% of consumers are outside the U.S.? Small businesses can expand their markets to other countries and capture new customers. Exporting can also be a risk management strategy because foreign markets may not suffer economic downturns at the same time are your home economy. Small businesses already comprise 97.4% of all U.S. exporters and you can be part of this impressive statistic. The concept of exporting may seem challenging, but it’s easier than you think. Basics of what you need to do to start exporting If you want to export, you’ll need to take certain actions […]

Disasters can happen at any time. They can be natural disasters, such as storms, earthquakes, and mudslides. Or they can result from human activity, such as arson and riots. Certain periods see more frequent natural disasters. The Eastern Pacific hurricane season runs from May 15 through November 30, the Atlantic hurricane season as well as that for the Central Pacific (including Hawaii) runs from June 1 through November 30. May is also National Wildfire Awareness Month. Because of the potential for experiencing a natural disaster, all business owners should, as former Prime Minister Benjamin Disraeli said, “prepare for the worst but […]

When you hire a worker, you effectively have an agreement that you’ll pay the worker for the work performed and treat the worker fairly. But depending on the nature of the worker—skilled, management, etc.—and the nature of your company, you may want additional agreements. Agreements are really contracts reflecting terms and conditions that each party understands and the breach of which can result in consequences. So, which agreements (contracts) do you want or need with your employees and what’s the best way to handle these agreements? Which agreements with your employees are advisable? Most employees in the U.S. are “at […]

With National Small Business Week recently passed, it’s a good time to look at how business owners appear on their personal tax returns. The IRS’s Spring 2022 Statistics of Income Bulletin has data on 2020 returns.  Here are some highlights for a tax portrait of business owners: Business income and losses reported Of the 164,187,262 federal income tax returns filed for 2020, 27,455,060 attached Schedule C to report non-farm income or loss from a sole proprietorship (farming income is reported on Schedule F discussed later). Schedule C is also used by independent contractors, including those who work in the gig […]

Under the federal Fair Labor Standards Act (FLSA), you must pay workers subject to minimum wage rules for the time that work is performed. This rule applies whether they’re working at your company site, in their homes, or on location. This simple statement is more complex when you try to define whether the time spent on certain activities falls within FLSA requirements. Look at various scenarios: Commuting Employers don’t have to compensate employees for the time they take to get to and from work each day; commuting isn’t treated as work. This is so regardless of the length of their […]