Getting Healthy

Increasingly, businesses and health insurance providers are trying to find ways to motivate at-risk persons to be more proactive with their health care. This movement may be partially fed by an altruistic desire, but several studies point to increased financial performance when the workforce is healthy. 
 
The Wellness Council of America has published a report that details the 10 most important factors to a successful wellness program. This report was designed with small businesses specifically in mind. The ten to-do’s for a successful program are as follows:
  • Supportive CEO – If management doesn’t buy-in and show active support, then the employee base will not either.
  • Program champion/guru – This individual will be the “personal trainer” for the organization and will have the ability to help people with their efforts and get them involved in the program.
  • Initial health survey – gives important insight into what matters to the employees; what concerns do they have about their health. 
  • Physical activity – Provide opportunities that encourage activity regularly in the workplace
  • Eating education – Include activities or methods that will educate employees on healthy eating habits and be sure that food offered in the workplace matches what you are teaching
  • Convenient information – Provide access to reading materials or other self-regulated tools that will continue the education process
  • Health newsletter – Present the ongoing results or success stories as a periodic newsletter
  • Company health policies – Include health policies as a part of the company procedures and policies
  • Community health events – Take an active role in community activities as participant and partner
The full free report can be downloaded from the WELCOA website.  Other organizations have also weighed in on wellness programs.  The Microsoft Small Business Center (page may need to be refreshed) effectively summarizes the WELCOA report and gives a real example.  According to PreventDisease.com , absenteeism, productivity, morale, and health costs may be positively impacted by successful wellness programs. And Workforce Management recently reported that the show The Biggest Loser embodies a successful wellness program by providing desirable incentives, support groups, and ongoing education.

Conflict Management

Whether it is at work, at home, or at the grocery store, we all experience some degree of conflict every day.  How we manage (not eliminate) the conflicts can have a significant impact on our success; again, whether that success is being measured at the workplace or at home.
 
In the workplace, conflict can arise between co-workers, leaders and subordinates, employees and customers to name a few.  Deborah Stallings, an HR professional and consultant, recommends the following best practices for engaging in confrontations or other forms of conflict.  These steps do not guarantee successful resolutions, but will make them more likely. Not every recommendation will apply in every situation.
  •  Have a high concern for all party interests and search for mutually inclusive solutions.
  • Develop self-awareness and, if possible, prepare yourself for the negotiation or confrontation.
  • Clarify what needs are being threatened by the conflict.
  • Identify a place that is safe and, preferably, neutral territory.
  • Take a listening stance. Be prepared to actively hear what the other party is saying.
  • Assert your needs with clarity.
  • Approach the interaction with flexibility.  Be open-minded.
  • Manage impasses with calm, patience, and respectful behavior.
  • Build an agreement that works highlighting areas of mutual importance.

These guidelines will prevent you from being walked on and help you to be open to the solutions and needs of the other party. To read the full article , visit NAWBO online.

 

Surviving a Weak Economy

While the current downturn in the economy has many lamenting their financial woes, it is possible for businesses to survive.  The Coeur d’Alene Press recently interviewed Bill Jhung , Region I SBDC coach, regarding the transition firms need to make to stay profitable.
 
The pressure businesses are feeling is a combination of decreasing revenues and increasing costs. However, this doesn’t automatically mean failure for all businesses. The majority of the strugglers are victims of other problems, which were harder to detect when the economy was strong.   Jhung observers that some businesses are blending in with the competition; the only distinguishing factor becoming price. And price competition only compounds the problems faced by declining revenues and increasing costs. Jhung recommends getting back to core strengths by getting rid of things that you are only doing because someone asked you to.  Jhung advises, “If you try to satisfy a lot of people you may not satisfy any group well”. He also reminds businesses to check their cash flows. “Cash is not the problem of a business, but can be the evidence of a problem”.  This goes back to giving the business a fiscal physical .
 
In summary, go back to what separates your business from the pack and be aware of your how your cash flows are moving.  To read the full article , visit the Coeur d’Alene Press online.

Google Business Tools

Google currently leads the pack when it comes to search engine usage. And it is becoming an even more powerful tool for businesses and prospective business owners. Three of these tools are Google Insights, Google Patents and Google Checkout.
 
Google Insights is a search tool for searches. In other words, Insights will tell you how many searches relative to total searches were done on a particular word or topic. This data can be filtered down by time period, location, or compared to similar search terms. For example, suppose you want to sell chocolate oranges. From the information Insights provides, you would be able to tell that their peak season is at the end of the calendar year with the majority of interest being in the United States and the United Kingdom. Or a more local example, suppose you want to open a take and bake pizza restaurant. Insight shows you that interest in take and pizza has been steady over the last couple of years, though not as stable as the Food and Drink category. You also learn the Papa Murphy’s and Nick & Willy’s are two potential strong competitors. So while Insights doesn’t replace in-depth research and analysis, it can point an individual in the correct direction.
 
The second tool is Google Patents. Google Patents is a search engine dedicated to patents. This is a quick and painless (free) way to see if someone else has already patented an idea similar to yours before a lot of time and money is invested in an idea. It is structured the same way as traditional Google searches, but will only return results for existing patents or applications.
 
Google Checkout is the Google answer to PayPal. It is an intermediary between your online customer and your bank account. It provides a gateway for funds to be transacted. The customer goes to your website and makes a purchase. Then the customer is transferred to Google Checkout where the transaction is completed. The information at this point may be filled in if the customer has a Google account and has saved their payment information. The customer is then transferred back to your site. Unlike the first two tools, this one does cost. A percentage of the transaction is charged as a transaction fee in addition to a small per transaction fee. If the seller subscribes to a certain level of Adwords, then those fees are waived. The incentive to using Google Checkout is that when Google searches are done from the Shopping tab, items that offer Google Checkout will be listed first. However, as with any business decision, a comparison of competing products should be performed to determine the best fit for that business’s needs.

Equal Employment Opportunity

Most people have seen the circled letters on ads or job applications. But does everybody know what they mean? And from a small business perspective, what is the implication to business practices?
 
EEO stands for Equal Employment Opportunity. It references a group of federal laws that protects individuals from discrimination in many aspects of the job process. This includes hiring, firing, promotions, pay, recruitment, and benefits. These laws are enforced by the Equal Employment Opportunity Commission. The laws preventing discrimination are as follows:
  •  Title VII of the Civil Rights Act 1964 (Title VII) – Prohibits discrimination based on race, sex, religion, national origin, or color. This law applies to businesses with 15 or more employees. :
  • Equal Pay Act of 1963 (EPA) – Men and women must be paid equal pay for substantially equal work within the same organization. This act applies to businesses with 20 or more employees. The most inclusive of the group, this law applies to most businesses with one or more employees.
  • Age Discrimination in Employment Act of 1967 (ADEA) – Individuals 40 years or older are a protected group. This law applies to businesses with 20 or more employees.
  • Rehabilitation Act of 1973, Sections 501 & 505 – Protects qualified individuals with disabilities that work within the federal government.
  • Title I & Title V of the Americans with Disabilities Act 1991 (ADA) – Protects qualified individuals with disabilities that work within the private sector and local and state governments. This law applies to businesses with 15 or more employees.
  • Civil Rights Act of 1991 – Provides monetary damages for those found to be intentionally discriminated against.
All employers that are affected by the EEOC enforced laws are also required to post a summary poster in the workspace in clear view of all employees. The Department of Labor has downloadable poster available. Click for additional detail or an overview on the laws.

Closing the Doors

When a business decides to close its doors, it must do more than simply lock the doors. Just as in the beginning, there are specific steps to follow to dissolve a business. If that business has been incorporated, there are a few additional steps.
 
From a simplistic accounting viewpoint, it is a matter of emptying the balance sheet. Assets are liquidated, creditors are paid, and shareholders are given their respective portions of the liquidation. By state statute in Idaho, the dissolution must be filed with the Secretary of State. The necessary form is found on the Secretary’s website. And of course, the IRS must be settled with as well.
 
The IRS provides a checklist for businesses seeking to dissolve. Among others, this list includes:
  • Make final federal tax deposits
  • File final employee pension/benefit plan, final quarter or annual employment tax return and final tip income and allocated tips information return (if applicable)
  • Issue final wage and tax withholding to employees and payment information to any subcontractors
  • Report from W-2’s and 1099’s issued
  • Report capital gains and losses, partners’ or shareholders’ shares, corporate dissolution or liquidation, and sale of business assets or other exchange of property.
To read the full checklist, including links to the appropriate forms, visit the Closing a Business page within the Business section of the IRS website.  To read more about dissolving a business, check out these guides from AllBusiness.com and Quamut.com.

Inside a Business Plan

As defined on the Idaho SBDC website, “a business plan precisely defines your business, identifies your goals and serves as your firm's résumé. It describes the products and services you will sell; the customers to whom you will sell them; the production, management and marketing activities needed to produce your offerings; and the projected profit or loss that will result from your efforts”. It not only serves as the skeleton of your business, but also outlines how the flesh will be added. Your business will be unique; however, there are topics that every plan should address. 
The Small Business Administration provides the following list, in part, of sections or topics that should be included to have an effective business plan.
  • The Business – This section should tell the reader why the business exists and what it is going to do to stay in existence. An internal analysis of the strengths and weaknesses of the business coupled with an external examination of the opportunities and threats that are at force in the business environment is appropriate for this section. An explanation of the overall strategy of the business and specifically the marketing strategy will also help the reader understand where the business is trying to go and how it intends to get there.
  • Financial Data – The financial data should include past, present, and future views. A three-year summary will show how the business has previously performed. A current balance sheet and capital equipment list will define the business in this moment in time. Pro-forma income statements and cash flows will demonstrate the future potential of the business. 
  • Supporting Documents – Essentially the appendix of the plan, this should include previous tax filings, contract agreements, such as sales or leases, and résumés of the major principals.
Templates can be found that provide some framework, such as at BPlans.com. And of course, SBDC consultants are willing to lend a hand, but remember that templates are merely starting points and no one else has the insight you do to write your business plan. Lastly, remember business plans are a work in progress and are useful at any life stage of the business.

The Power of Women

Over the past 40 or 50 years the role women play in the business environment and in the household as a consumer has evolved. Women as a group have gone from not having a respected voice to making 83% of purchasing decisions, including big ticket items like cars. They make 80% of the family healthcare decisions and by 2010 it is forecasted that women will control 60% of the country’s wealth.
  • Women, especially single women, are rightfully having products and services designed and marketed with their needs and opinions. One group that has been lagging in this move is the non-profit sector. The 2007 book The She Spot: Why Women Are the Market for Changing the World—And How to Reach Them by Lisa Witter and Lisa Chen gives several reasons why this sector should stop ignoring women.
  • Women’s Economic Clout is Rising – As mentioned above; women are responsible for a large majority of the purchasing decisions. But this doesn’t mean they are just spending their husbands’ money. One out of four women out-earns her spouse. Women earning more than $100,000 per year were the fastest growing income segment over the last decade. 
  • Women Care –And Give – Almost more important than who has the money, is who gives the money. A survey of 400 businesswomen found that more than half donate $25,000 or more a year and 19% donate $100,000.  Women aren’t just giving money, but their time also. In the public sector, women head more than half the foundations in the country and hold 70% of the program officer positions.
  • Women Pay It Forward – Women are more likely to recommend a product to a family member or friend. Powerful word of mouth advertising is second nature to most.
  • Women Volunteer More of Their Time – In a 2005 study, 32.4% of women did volunteer work compared to 25% of men. More women than men engage in volunteer work across every state, education level, and age group.
Women have become a powerful force in the economy in both profit and non-profit organizations. Their opinions, abilities, and desires make them a powerful ally for any business, but can have an even greater impact in the non-profit sector. Click to read a sample of the book.

Innovate!

“Innovation is a verb!” exclaims Robert Newhart from the cover of my materials packet.  I recently attended a session with the CEO of the Innovation Center in Bend, Oregon. This exclamation was definitely the theme for the day. The session was filled with activities and lecture that revolved around the idea of doing not just thinking. Innovation and creativity are the lifeblood that moves a group, an organization or even a country forward and allows quick ability to change. The Innovation Center has made it their business to help organizations foster cultures that promote innovation. 
 
Whenever an individual or firm innovates there is a risk and reward trade-off. Unfortunately, often only the risk is perceived. Mr. Newhart and company remind organizations that the reward to innovate does exist and can be great indeed. 
 
Sometimes the key to innovation can be as simple as thinking outside of the box. Most people equate new products or product changes with new inventions. The Innovation Center will tell you there are six P’s of potential innovation. Innovation can occur in any one or combination of the following six areas.
 

Organizations have opportunities to innovate around one or all of these areas. The Innovation Center challenges their participants to list one way they can innovate in each of the areas. At the very least, this exercise get most organizations thinking about and truly understanding their business model in new ways. A better understanding of the business will lead to better innovation. Louis Pasteur once said, “Chance favors the prepared mind.” Click to learn more about The Innovation Center and what Robert Newhart is hollering about.

Creating Organizational Culture

The accepted behaviors, values, and atmosphere in a company combine to create the culture. The culture of an organization has a large influence on employee performance and it is influenced by the expectations and attitudes of management. Or if there is a lack of awareness as to what those expectations are, that will also create a culture by default.
 
The Ken Blanchard Companies discuss this topic in their April 2008 newsletter, Ignite!. They write that culture will drive success. But culture is intangible and vague by nature. Somehow management must figure out a way to successfully communicate the desired culture to the organization along with the desired actions that perpetuate the culture. 
 
Chris Edmonds, Senior Consulting Partner at Ken Blanchard Companies, asks clients, “What are the behaviors that you want to see from a standpoint of productivity, performance, and values?” He follows their response by asking them to label the behavior as attitudinal or observable. If it is attitudinal, then he continues to probe until the manager discovers the observable action that is driving the attitudinal behavior. Now that the vague and lofty idea of the desired culture has been equated to observable actions, they can be as measured and tangible as any other goal that the organization has set.
 
Edmonds’ big takeaway is that culture doesn’t develop nor is it changed on its own. And everyone from senior management down to the front lines needs to be in the flow of communication regarding organizational expectations. The actions of senior management cannot contradict the words being communicated and everyone needs to be accountable for doing their part. Management must be proactive in developing a culture and it will take time and money. Both of these costs can be managed through incremental changes, baby steps. This method will also make the change process easier for the workforce to handle. Edmonds’ final quote from the article sums it all up, “The trick is if you’re not getting what you want, then it’s time to change those expectations.” Click to read the entire article or explore more from The Ken Blanchard Companies .

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