Showing posts with label challenges. Show all posts
Showing posts with label challenges. Show all posts

Wednesday, April 27, 2016

How to Make Smart Hiring Decisions for your Small Business

Facing a competitive and crowded labor market is a common challenge for small businesses. Rather than “the talent” competing for your job openings, it’s other businesses competing for the same talent.  Add into the mix -- that as a small business owner -- a new hire essentially means adding a new family member. The employee becomes part of your presumably small inner circle. So as an entrepreneur, how do you acquire top talent -- against stiff competition -- who will also fit into your existing tribe? 9 ways to step-up your recruitment strategy:


REACH OUT. Consider looking outside your business’ immediate area to grow your team. If the locals don’t seem to fit the bill, or don’t answer your call for openings, stretch your reach to neighboring communities. The right candidate won’t mind making the move geographically and/or commuting a little further for the right workplace scenario.


SEEK OUT THE SEEKERS. Try looking on job search sites in the job ‘wanted’ section. This might include Craigslist and even the relevant newspapers. Candidates who are proactively and eagerly looking for work are likely ones you can count on to perform. Looking for new grads to fill empty shoes? Ensure your opportunities can be easily located and applied to via mobile apps and social media networking sites like LinkedIn and Indeed. Millenial job seekers are not just doing their job searching online. According to Accenture Strategy’s 2015 U.S. College Graduate Employment Study, 64% of 2015 graduates have used a mobile app to search for a new gig.  


TRY FLEXING. Still not finding the right full-timers or the local labor pool seems particularly barren? Consider hiring a freelancer. Freelancers are often excited about helping a growing business. They can learn something new and contribute in the early stages of building your brand. Most come armed with a variety of experiences and a diverse portfolio. Plus, freelancers can contribute to your business on an as-needed basis.


START SPREADING THE NEWS. Referrals from successful employees -- who are already happy working for and with you -- or investors in your business can provide qualified leads. A passive job seeker who is connected to you via a respected colleague might just be a star candidate. Consider this, they are experienced and dedicated to their craft and are recommended by someone you trust. Oh -- and they aren’t job searching, so the only competition you’ll have is their current place of employment.


HIRE FROM INSIDE THE LINES. 72% of 2015 college graduates participated in an internship program during their collegiate career (up from 65% in the prior year). An intern will have the opportunity to learn your business from the inside out and potentially get involved with a number of departments/projects/colleagues during their tenure. It’s a plausible solution to finding talent that fits. You have the advantage of determining if they will work well with your existing employees, while at the same time learning the business.  


BE MEMORABLE. There is both risk and reward in working for a small business. Do your potential hires know the reward, if they’re expected to set the DVR and burn the midnight oil? Promote your culture -- for example, what is unique about your business? Show candidates what they can expect via a tour of your space on their interview visit. It might even be worthwhile to have them shadow someone besides the hiring manager (namely you) before a decision is made. If an applicant rejects an offer, as for feedback about your culture. Maybe it’s time to re-evaluate. Ask your current crew what’s missing and you not only win brownie points for including them in the process but you’ll be poised to attract other people looking for the same benefits. Success for your growing business starts “at home” and if your employees aren’t “feeling” the culture you’re creating, they won’t be a long lasting investment.


GIVE A LITTLE. Be willing to offer more to your employees. The “more” doesn’t necessarily have to come in the form of dollar signs. Many new hires are satisfied with a well-rounded package of salary and benefits. Sixty percent of the class of 2015 said they would prefer to work at a company with a positive social atmosphere and earn a lower salary than make more money someplace where it's less fun to work. Flexibility also goes a long way and can gel nicely with the vibe of a young business. Think about allowing some role players the option of working remotely as a perk.


SCHOOL THEM. Skills can be taught but personality is a plus and drive is a must. During a search, consider potential employees who are ready to embrace the adversity that often crops up with a small business. Also, ask yourself if you'd enjoy lunch with the new worker bee because if personalities don't click, how will you connect on projects? Having skilled employees who match both your vision and your enthusiasm is inevitably important. If someone is in a constant state of discomfort, it will show in team meetings and in front of a client. A willingness to train the right person will prove fruitful in the long run.


TALK IT OUT. When you hold an interview, ask what a candidate does outside of the workplace? An employee’s hobby could prove to be a hidden gem skill set for your business. And this same line of questions, could also help you determine his/her potential fit in your workplace. Do they like to play softball and your business has a team or maybe he or she is active with local charities and your business encourages philanthropy. In a similar vein, how do they envision the future? While working at your small business may not be their life-long dream (although, bonus if so!) having this conversation can unveil how motivated the individual is to grow as a professional. Ambitious leaders-to-be will see working for you as a valuable experience and this exchange could reveal ideas worthy of being implemented by your brand when the new hire hits the ground running.


Does your small business have proven recruitment strategies? Share them in the comments!


BBB’s News and Opinion Blog serves as your source for business topics and industry news like tips for customer retention and how to use social media engagement to grow your business. For more information you can trust, visit us at bbb.org/boston, like us on Facebook, or follow us on Twitter and Instagram.

Written by Stephanie Benz, Senior Social Media Associate for Better Business Bureau Serving E. Massachusetts, ME, RI & VT.

Tuesday, February 23, 2016

Taxes: How Your Small Business Can Tackle Tax Season

For many business owners, tax season is perceived as headache season but taxes don’t have to be a hassle. Strategies like keeping your records in order all year long, familiarizing yourself or your staff with the relevant deductions and regulations as well as understanding your tax return post-filing will prove valuable. Here are several tips to help you master taxes.


Keep it Together
About 60 percent of small business owners say they spend more than 40 hours a year dealing with federal taxes. Dial down the stress and save some time by staying organized year-round. You don’t only need well-kept numbers for tax prep purposes but business owners often need to provide financials when in the pursuit of investors or lenders. Why not glean twice the benefits simply by being systematic about what you spend? Sifting through receipts and files a day before deadline is no one’s daydream. Stay one step ahead by making the time to be organized. Put a system in place or bring someone on board who has the time and expertise to assist.

Don’t Miss a Minus

Make the time you invest into organizing your tax records worth it. Understand what qualifies your personal effects and spaces as write-offs and keep accurate track of their usage. Don’t overlook deductions like your car and your home office. Track mileage and parking charges you’ve incurred for business travel. Is your home the primary location where you conduct your business? Or is there a space in your home dedicated exclusively to your business operations? You can deduct the relevant expenses. New to the business ownership bracket? Claim start-up business expenses like computers, furniture and inventory. Courting new clients? You can write-off 50% of business entertainment expenses like business lunches. Stick with the trend of being organized and record who attends and the nature of those outings. You won’t regret having records to back-up the deductions you’ve claimed when it means avoiding an audit or at least being prepared, in case the IRS randomly selects your return.


Make it your Business to Know, or Go Pro

According to the National Small Business Association, nearly 60 percent of business owners say administrative burdens were the biggest problems posed by federal taxes. Tax code is complicated -- especially with new regulations in place such as healthcare law and the permanent tax break via an extension to Section 179, which addresses deducting depreciable assets (equipment) up to $500,000 based on an organization’s gross revenue [Section 179 Infographic] -- perhaps so much so that code is a catalyst for many small business owners to hire a tax preparer come tax season. It’s crucial to check tax laws every year. If you have an in-house accountant or bookkeeper, confirm he/she has access to the most current information which is not only vital for tax filing in the present but for planning for your business’ future. Hiring a tax professional means added money and time spent for a typically already budget conscious small business but the NSBA’s report revealed that 85 percent of business owners surveyed relied on a professional to prepare their returns. With a looming hope for lower taxes on small businesses, make sure you take the time to research a trustworthy tax preparer before you pay someone to crunch the numbers for you. It’s important to avoid penalties and equally important that you’re getting all those deserved deductions.



Roll Call
It’s essential to accurately classify your employees. Full-time employees and freelancers (independent contractors) are two very different animals when it comes to tax filing and reporting income. Remote worker bees and telecommuters continue to make more appearances in workplace dynamics -- and on payrolls -- and in many cases are a necessary element for small business success. Be careful, don’t get fined because your employees’ roles with the business are not accurately defined. Intuit offers a worker “wizard” to help you classify team members as an independent contractor or employee.

Review to Avoid a Repeat

It takes time but it’s a simple practice to put into place. Reviewing your business’ return with an accountant will provide guidance for future endeavors. Understanding the return and what it means for your business will unveil areas needing improvement and how you can avoid tax mishaps or set yourself up for similar success moving forward.


Other Helpful Resources


BBB offers a directory of qualified tax preparers and accountants, important IRS resources and tips on how to avoid tax scams for the 2016 tax season. For more information you can trust, visit us at bbb.org/boston, like us on Facebook, or follow us on Twitter and LinkedIn.


Written by Stephanie Benz, Senior Social Media Associate for Better Business Bureau Serving E. Massachusetts, ME, RI & VT. Meet Steph.