10 Tips for Hiring the Perfect Employees

The success of any company is strictly connected to its employees and the value they contribute – some of them in a lesser way, others in large degree. Employing should be done very cautiously, meticulously and tactically simply because good recruitment and retention strategies are often times making for a competitive edge.

Here are the top ten tips on attracting best employees to your business and keeping them once they are already making part of your team.

1. Recruiting Constantly:

Successful companies are always looking for fresh talent. They know exactly which skill sets they need at the moment but also in the future, and which types of employees will fit the need. Even if they don’t have an opening for a particular position, they still look, because any employee might leave at any moment.

2. Knowing what is Necessary in a Candidate:

Knowing the essential skills and behavior patterns that will make an employee successful at a particular position is very important, so when hiring, a job description should be in place for each position. This helps in putting the interviews with potential future employees in the right frame, and also helps the prospect to learn more in advance about the skills required for the position.

At first, a job description simplifies the process of selecting the right employee. A good job description also guarantees that the prospect has a perfect understanding of accountability, authority and expected results, so in many ways this is also a valuable training sketch.

3. Interviewing Different Applicants:

Don’t employ the first candidate you like. Make sure you meet and talk with a large number of prospects – even the ones you won’t be interested in. If you think a particular applicant is not a very good fit for your business, use the interview process to get info about your competition or make a business-development opportunity. Your firm’s next association partner can appear on one of these interviews!

4. Asking Penetrating Questions:

If you want to find out if an applicant will be a good fit for your business, the only way to do so is to ask a lot of questions and learn if:

they have an optimistic approach.
they are highly energetic.
they are dependable and have a good personality.
they feel confident at work and in life.
they are accountable and weather they are making excuses.
they wish to learn and grow constantly.
they are prepared to work with a team and follow the leader.
they have a good track record.
they can accept change and move on with the organization.

5. Checking References:

The employment laws nowadays are very strict about how much info can be attained concerning past employment. Earlier employers cannot give out any info. The only thing they can share is the length of employment of their ex-employees. They cannot give out any info regarding talents, assertiveness, appearance or anything similar in the person’s job history while employed at a particular place.

6. Clarifying your Expectations:

New employees rarely know precisely what is going to be expected from them, how they will be evaluated, or with whom they will actually work with. It is imperative to communicate outlooks and metrics undoubtedly in a few words from the start.

7. Offering Attractive Compensation:

Money not only can buy a house or a car, but it also signifies appreciation and fairness. Gifted employees anticipate that their influences in the company will be recognized and their compensation will reflect their input into the business. If needed, do a compensation survey to find out if your employees are happy with their salaries.

8. Establishing a Buddy System:

Many times unnoticed yet steadily successful, mentoring schemes give workforces a sense of history and community upon entering a new business setting. By familiarizing beginners to the office surroundings straightaway, mentors make them feel significant and essential to the firm’s success.

9. Developing Individuals to Their Full Potential:

Many companies are leaving a remarkable amount of human potential unused for the reason that people are ineffectively managed.

Offer casual advice and coaching, cross training and occasions for progression. Train all new staff methodically in job requirements straightaway after hiring. Situating a new member of staff on the job to “sink or swim” consequences in frustration, chaotic work habits and an oversight of significant details. Strengthen the attitudes and conduct patterns you approve of.

A new member of staff is generally highly interested in new ideas and enthusiastically integrates and willingly accepts the managerial vision, mission and goals.

10. Conducting Exit Interviews:

Keeping of talent many times begins at the end of the process. An employee who is quitting will probably be more truthful and forthcoming than an individual who is still depending on your business’s salary. In order to guarantee really effective exit interviews, the management must create an environment of confidence long before the letter of resignation is failed by the employee.

7 Tips for Selling Your Small Business

The sale of a small business can be a long and complicated process that requires the assistance of outside help: an accountant, broker and possibly an attorney. The sale will probably take up a considerable amount of your time and energy as you attract the right type of buyers, handle all the paperwork and learn how to handle the profits wisely.

The outcome will depend on many factors: company value, timing, legal structure and finances involved. Consider the following 7 steps to make your small business sale easier.

1. Determine why you are selling your business.

This question is one of the first ones anyone interested in buying your business will ask. Why? They want to make sure you have a legitimate reason that does not signify that the business is struggling or failing. Below are a few of the most common reasons why someone would sell their company:

You want to retire
Ill health or death
Strain and stress of working too hard
Boredom or lack of interest in the company
Disagreements between partners

You may want to sell your business if you are not making money with it, but this is not the best thing to tell potential buyers. Focus on the positive aspects of the business and its potential. Consider some of the following positive traits that will make the company attract more interested parties:

Loyal customers and new markets opening up
Steady income records
Profit increase due to more sales or lowering costs
Long-term contracts and business relationships

2. Focus on timing.

Selling a business takes more preparation than selling a product. It is recommended to start the process up to two years in advance. This gives you time to work on everything that will make your company more attractive to potential buyers: structure, customer base and finances.

Not only will a more profitable business result in a higher sales price for you, the tasks involved can make the transition to a new owner smoother for all involved.

3. Find out how much your business is really worth.

The easiest way to determine the true value of your company is to enlist the help of a business appraiser. Their experience will allow them to create a detailed report describing how much your company could possibly sell for.

You do not want to ask for either too much or too little when trying to sell your small business. Not only will this appraisal help you start the sale at the proper amount, it will also give potential buyers an independent review of the quality of the offer.

4. Consider using a broker.

If you are selling your company to a trusted friend, family member or an existing employee of the company, it might be a great idea to sell the company yourself. This helps you realize a greater profit since no broker commissions will cut into it. However, since business brokers earn that commission, it is in their best interests to get you the maximum amount of money for your business.

Using a broker can also leave you free to do the normal tasks required to keep the company running. Talk to a few brokers before deciding on the one you think will do the best job. Constant communication is a must so the business sale goes smoothly.

5. Ensure you have the proper documentation.

Gather your financial statements and tax returns dating back three to four years and review them with an accountant. In addition, develop a list of equipment that’s being sold with the business.

Also, create a list of contacts related to sales transactions and supplies, and dig up any relevant paperwork such as your current lease. Create copies of these documents to distribute to financially qualified potential buyers.

Your information packet should also provide a summary describing how the business is conducted and/or an up-to-date operating manual. You’ll also want to make sure the business is presentable. Any areas of the business or equipment that are broken or run down should be fixed or replaced prior to the sale.

6. Find quality buyers.

SCORE, an entrepreneurial nonprofit associated with the US Small Business Administration, states that business sales usually take from 6 months to 2 years to complete. Invest in quality advertising so you get the sale information in front of the most targeted people.

After you have grabbed the interest of a few possible buyers, forge ahead toward a sale with these tips:

Line up more than one potential buyer in case negotiations fall through.
Always maintain contact with them to update and gauge interest.
Check the financial status and pre-qualification of potential buyers. You may decide to finance the sale yourself. Consult an accountant or attorney for help.
Be prepared to negotiate the price, but do not stray far from the appraiser’s value and your desired reasonable sale price.
Get everything in writing. Remember to use a nondisclosure agreement so the potential buyers cannot discuss your business or the sale with other parties.
Use escrow once you get a signed agreement to purchase the business.

After the sale is complete, you should retain the following documents: the bill of sale transferring the company to the new owner, lease assignments if applicable and a security agreement in case of any seller-held liens on the business.

Some buyers may want a noncompete agreement as well. This means you would not be able to start a similar business in the area that could steal the old company’s customers or clients.

7. Learn how to handle the profits wisely.

Once the sale is complete and all that money is completely in your control take a while before spending it. Impulse buys during this time could destroy any retirement plans or reasons you had to sell the company in the first place.

First, study the tax laws to see what you will need to pay with the sudden influx of wealth. Next, make an appointment with a financial assistant or planner to learn about investment options and long-term income for retirement.

Putting your business up for sale not only takes a lot of professional planning. It can also be personally challenging and stir up emotions. If you have a good reason to sell and the market for companies like yours is hot, it can make the process easier.

Consider professional counseling from SCORE, the Small Business Administration and your local commerce organizations. In the end, the freedom and large sum of money you get from the sale will make it all worthwhile in the end.

10 Tips for New Business Owners

In a perfect entrepreneurial world, established and successful business owners would all share their advice and guidance with people just starting out. I encourage building these types of relationships as they do a lot of good in the business community. Here are the top 10 tips I would give to any new business owner.

1. Focus on One Business

There are thousands of business opportunities flying around, and a new business owner might get the urge to jump from one to another until they find something that works. The secret here is that most things work if you work at them. Choose one business model and establish it before you even think about moving to another.

2. Do What You Know and Like

If you have no interest in the business you start, you will not dedicate yourself to it and it will suffer. Do not chase business ideas just because they seem hot right now or make promised about big profits. A company you enjoy working for will be the one that you should own.

3. Master the 30 Second Pitch

You never know whom you will run into. Learn to pitch your business to chance encounters in 30 seconds or less. If they are interested after that, you can spend more time with them. If not, you will not make a bad impression or bore them.

4. Recognize the Need for Mentors

Confidence is good, but a dogged belief that you know best in all circumstances is not. Learn from mentors and established, successful business owners online and in your community. Build relationships with those who offer a real benefit to your company and professional mindset.

5. Keep It Start Up Simple

The best way to succeed financially in business is to operate within your means. Forget offices and company cars. With low overhead and supply costs, you have a higher chance to get into profit more quickly and a lower chance of having financial troubles. Save the $1,000 leather office chair for when you make it big.

6. Learn As You Go

No matter how detailed your business plan is, something will always throw it off course. There is not perfect plan of action you can envision that will keep everything running smoothly forever. When things go wrong or you make mistakes, learn from it. Spend enough time planning to know where you are going, and then maintain a flexible and open attitude to tweaking the plan as you gain more knowledge about what works and what does not.

7. Never Expect Handouts

Do not expect a small business loan without proving that your business idea works first. Don’t expect investors to call you up with offers, or even your mom to fork over some of her savings to help you out. The beginning of any successful business requires frugal choices and small budgets. After your business shows some promise, the chance of getting a loan or an investor increases.

8. Stay Healthy

New businesses take a lot of time and can cause a lot of stress, but if you wear yourself down to the sticky ends, you will not be of any use. Eat nutritious food, do some exercise and give yourself time to relax without thinking about the business. Be sure to spend enough time with your family as well, or relationships may suffer.

9. Keep Your Feet on the Ground

Let the results speak for themselves. Do not exaggerate about your success or share extreme future plans with everyone you meet. Be optimistic but realistic, and always let the outcome of your efforts be the real declaration of your success.

10. Recognize When You Need to Throw in the Towel

Not every business will succeed. Some new businesses can be chalked up to learning experiences before you move on to better things. Recognize objectively when things are beyond hope and make a financially responsible and professional exit. Learn from it. When your entrepreneurial spirit calls you to start up another business, remember the mistakes you made and do not make them again.

Using Credit Cards to Finance Your New Business

Credit cards can easily supply small, growing businesses easy money. But some very serious risks also come with them.

There are personal credit cards, and there are cards custom made for small companies. Each one has rewards and benefits. There is more protection provided by the government for people who own personal credit cards, while business cards could have increased limits and rewards like office supplies that are affordable and custom made for owners of businesses.

Don’t get fooled into thinking you should make use of a business card with the business, because no matter what, you’ll damage your personal finances if the bills fail to get paid.

The Upside

In addition to giving required money to new businesses, credit cards may also increase credit scores for business owners and businesses both , which will depend on if payments are made promptly. In addition, there are exclusive perks and rewards like gas that’s available at discounted charges, cash, and even airline miles.

The money is also a whole lot easier to come across, which will certainly aid you in a pinch.

When it comes to record keeping business owners may get the assistance they require by using business credit cards for daily costs in the business, which will help them separate personal and business finances, make business financial reports, and keep close track of personnel spending.

The Downside

Credit card interest rates are way higher than old fashioned loans, which may make them a costly type of debt that will hurt the business during difficult times.

It’s no wonder that for each $1,000 in credit card debt that a small company takes on, it’s chances of lasting for an extended time period reduces by more than 2%, which was discovered by the Ewing Marion Kauffman Foundation.

For a new company, it is important to tap personal funds, friends, family and other investors to stay away from gathering up a lot of credit card debt. The earnings of a young business will become swallowed up by such high interest debt.

Getting behind on payments and you’ll probably mess up your credit score, making your chances to take out loans as the company grows slim. An overdue payment on a small company credit card also will get you reported to a business credit agency.

Additional Tips

Here are some additional tips for using credit cards to finance your new business:

Go and visit review websites including CreditCards.com, CardRatings.com, and Bankrate.com that hand out online tools to examine rewards programs, interest rates, and annual fees.
If you do not closely examine the fine print and ask a lot of questions you might get burned on a small business credit card. Such cards aren’t protected by the 2009 Credit Card Accountability, Responsibility and Disclosure Act. As arbitrary interest rate improves the law keeps customers safe from such tactics.
It may be much better to charge purchases on the personal plastic rather than a business card if you think you will not have the ability to pay them off in just one billing period.
Avoid paying too much attention to annual charges. Take a look at employee expense tracking, concierge service, baggage insurance, and also having access to airline clubs.
Try to find the business cards that have the most impressive rewards to make something back on the business’ purchases.
Utilize introductory zero-percent rates on both balance transfers and purchases.
For different kinds of transactions you should make use of different kinds of cards. A business-rewards credit card for example, will most likely be good for daily charges, while a zero-interest personal card will likely be good for funding.

7 Tips for Building a Successful Business

Beginning a start up business can be extremely rewarding and also very challenging. If you are willing to keep an open mind and constantly learn new ideas and strategies, you will learn more than those who just stumble along.

You can pick up any article praising the lifestyle of working for yourself. The Internet alone has articles praising the lifestyle of yachts and fast cars, never acknowledging the hard work that must be put into it. Yes, once you get on the right track, you will gain a great amount of independence and added quality of life. Just keep in mind in order to get to that level, there must be a great deal of work needed on your part.

Here are several tried and true facts that you should take heed to and learn from if you want to be a successful entrepreneur:

1. Embrace Your Goals

You must have a passion for the business you want to succeed in, all successful entrepreneurs know this and embrace this concept. If you have the passion, you will find the commitment to make it happen. Search around and find organizations and groups to get involved with that share your interests. You must have a genuine desire if you want to succeed.

2. Acknowledge and Accept the Work Ahead

Acknowledge the long hours you must be committed to and accept the fact there are no easy ways around it. Working twelve hours or more a day, including weekends, is the life you will be living when beginning to form your business.

3. Set Your Expectations with Family

Not everyone is going to understand or appreciate the demands and commitments entailed in a start up business. It’s important that family members understand the demands placed on you. Don’t expect them to realize your workday is not going to end at 5:00 pm. If you place your cards on the table and let them know when they can call you or reach out to you, it’ll be less frustrating for everyone.

4. Take the Drive to Become Successful

If your business comprises of other people, don’t expect to sit back and let everyone else figure it out. If you need to understand how a system operates, don’t pass it on to someone else, do it yourself. All businesses, starting off, need to setup guidelines and policies it won’t happen all at once but it will grow roots. You will make mistakes, learn from them and don’t be afraid of the chaos surrounding the situation, embrace it and learn from it.

5. Practice Good Communication

With any new start up company, priorities and projects are not going to happen overnight. Communicate with your team so everyone knows what’s going on and what is expected of each member. Don’t assume everyone knows what the goal of the day is. You must communicate because everyone on your team needs to be in the “Need To Know”circle.

6. Balance Your Day

Finding the right balance is not that difficult in this day and age of high technology. Place your priorities in the correct order, then make time for those priorities. Find out if the business can do without you on a specific day so you can work out of your home. This is ideal for spending some quality time with your family. Use mobile apps so you can stay in contact with your family on nights at the office.

7. Know When It’s Time To Take A Break

Again, All Work and No Play makes for a very stressed out life. No one can work long grueling hours 24/7, know when to step away. Find activities that help relieve your stress and make a habit of participating in them. Whether canoeing is relaxing or going to a baseball game, go and enjoy yourself. Stress is the number one killer in this country, you must take time to recharge your batteries and relieve that tension.

Knowing when to take a break will give you fresh perspectives and give you the energy to tackle that new project coming down the road.