Your Business’s Digital Future

   Just when you thought it was safe to coast on your Facebook fan page laurels new dangers to complacency are lurking around the corner. Let’s just say you don’t have to get worried, but you should be prepared to rethink everything you know about your public image.

   If you haven’t established a viable presence on the Internet, you won’t be left behind. It might behoove you to get started soon, however, just so you can join in the fun! In the December 3, 2011 edition of the Wall Street Journal an interview with David Gelernter, a Yale professor, mapped out a road to our digital futures. Things look very, very bright down that road.

   Gelernter, infamous for his near-murder by the Unabomber years ago, writes about how the Internet, a clumsy vehicle at best in its current form, should become more elegant, rational in application and use, and useful to us who traipse around on the Web. The man has a vision of a system that makes sense to users.

   He sees us organizing things into what he terms “lifestreams,’ which we would recognize in Twitter. We could put things together in an elegant way to serve our needs. Facebook does this in a crude manner now, although it is refining its system constantly. We could keep all our “things” together in one place instead of the hodge-podge mess we struggle with now.

   How could this work for your business? Well, think about having the information you want to communicate in one place that is easy to use. As it is now, you might be making changes to your website, your Facebook page, your Facebook fan page, sending tweets, sending emails, using voice broadcasts, and so forth. It’s enough to keep a social media manager crazy all day with these stuff.

   The challenge we face in business is getting information out in timely fashion without contorting ourselves or being in a constant frenzy. Let me demonstrate how one company recently solved some of these problems.

   I give you…the ipad. Steve Jobs insisted all his products have elegance and be easy to use. The ipad is a neat little package of problem solving genius. Think about how it functions, where it functions, and the size for all that functioning. I’m amazed everyone hasn’t ditched their computers to use the thing all the time. Well, okay, it’s much easier for me to write sitting at a desk top computer with full-size keyboard than at a little toy-like device. But you get my drift…

   As we become more proficient in our communications and learn how to really reach the people who could be our customers, we’ll welcome anything that benefits us in taming the beast of the web. We shall overcome…our difficulties with technology.

Have a terrific week!

Patricia

Business, blessings and beyond

   It’s Thanksgiving week, which means it is time to be thankful for the blessings we have in our business and personal lives. Many of you think business needs to improve, as does the rest of the economy. Indeed, there is room for improvement. That doesn’t alter the fact that we all have many reasons to give thanks.

   The past year has been filled with countless opportunities to learn new ways of doing our businesses. If you intend to stay in the game you know you have to keep finding ways to tell your story to your customers and offer the best products you possibly can. Further more, you have to be able to promise your customers that you guarantee the products you sell, if you offer service and maintenance it must be first class, and you have to offer a full refund if people are dissatisfied with the products. Failure to take any of these steps will leave you in the also-ran category.

   Whether your business is product or service oriented, you owe your customers the best you have to offer. Why should people spend with you instead of someone else? Answers to this question will help you decided what you have to do next to increase your business traffic and awareness. Perhaps you need a business coach or consultant to guide you to a better platform. There might be many ways to improve your product, or certainly how you sell and service that product. Find out what you need and make the decision to move forward in the next few months.

   But this week, take the time to be thankful for what you have in your life. If you need changes, start making them. I promise you that having an attitude of gratitude for the good you have will make your life better. Have a blessed week and happy Thanksgiving!

Patricia

Gibson Guitars, G-Men and Regulatory Absurdity

   Gibson guitars seem to be a major threat to the United States and conservation. That’s the conclusion I reached after reading about how an armed SWAT team arrived at the company’s factories and headquarters in Nashville, Tennessee.

   On August 24 federal agents arrived with all the subtlety of a Hollywood celebrity. A simple office call didn’t fit the bill. Mind you, guitar makers, as a lot, must be prone to intense violence while making fine instruments. Otherwise, why the hoopla?

   The November 12 issue of the Wall Street Journal published an interview with Gibson CEO Henry Juszkiewicz about the “invasion” of the agents. In addition to a SWAT team with automatic weapons, Fish and Wildlife Service agents entered the factories and threatened the poor craftsmen and other employees. What heinous crime did Gibson commit to warrant such behavior? Well, we don’t really know because they have not been charged with a crime. What? No charge? Nope. It’s hard to imagine what crime is so secret even the alleged perpetrator can’t be told about it. Entré to the premises was gained because the feds had a warrant issued under the Lacy Act, a conservation law.

   What conservation law did Gibson violate? Guitar makers use imported rosewood to form the frets on guitars (that’s the long, skinny part where musicians place their fingers to make chords.) Guitar makers don’t normally raise their exposure to liability by importing illegal hardwoods from other nations. Neither did Gibson. They have all the proper documentation stating unequivocally they met the standards for legal importation of rosewood from India. So what is the real problem? That’s hard to say. Because Juszkiewicz isn’t speculating about any of it.

   The CEO denies the “raid” was politically motivated. Naturally he has some smart lawyers who advised him to keep mum, especially in front of the press. No sense stirring up yet more animosity from the purveyors of political correctness and liberal nonsense. The interview is an upbeat account of how Gibson is faring, other than the pesky problem of the Lacey Act. Musicians are all about making music on their instruments and listening to music through a variety of playthings, so Gibson is focusing on that, rather than the theatrics. Still, you have to wonder.

   If a major music instrument manufacturer can be hounded by thugs supposedly representing us in the guise of government workers, what could happen to the rest of us and our businesses? Is your business safe from predatory intervention? Go ask the owners of coal mines. If the EPA regulations continue unabated we’ll see more mines shutting down with the concomitant rise in energy prices. Energy companies are under attack now from untenable regulations. What other businesses will find themselves in court, their rights sacrificed on the altar of politics.

   Gibson doesn’t claim politics is behind this scare tactic. Boeing will sing a different song. Their move to build a plant in South Carolina is being blocked by the National Labor Relations Board, an entity with no jurisdiction over where companies build their plants. Yet, somehow, they are in the midst of trammeling upon Boeings right to conduct business as it sees fit. See a pattern here?

   If you care about your business, your personal life, and the ability for you and your family to decide for yourself how to pursue your own happiness, then start making noise. As P.J. O’Rourke says in his book, “Don’t Vote, It Just Encourages the Bastards,” we have the only republic founded upon the premise that we are endowed by our Creator to many things, including the right to pursue happiness. Exercise your rights and tell the turkeys to leave you alone. In a world gone mad with murders and terrorists, surely there are more important problems than picking on guitar makers about where they obtain their wood for parts. This is especially true if that business followed all the laws in importing the wood. What a waste of taxpayer dollars. But, then, that’s what the left does best…waste our money, right? Okay, time to smile again. And it’s time for a real change, don’t you think?

Have a terrific day!

Patricia

Health Care Changes Beyond 2012

   Last week I wrote about the more immediate changes in health care plans for 2012. As you might imagine, the changes won’t end next year. While the new plans roll out, there are other things you want to keep in mind for the future.

   Barring the gutting or repeal of Obamacare, we can look forward to more restrictions beginning in 2014. While there are some benefits to the Patient Affordability and Care Act, the down side skews the equation in favor of problems for business owners, difficult decisions for people without health care insurance and the self-employed.

   On the positive side, insurance companies cannot consider a person’s health status when insuring them. Kaching…that was the sound of your premiums going up to begin paying for coverage of more unhealthy people. Now, for the record, I am all in favor of insuring everyone, regardless of health status. None of us want our families to live without health care coverage. The financial consequences can be devastating for families if someone becomes very ill. But we need a better plan for paying for all this coverage than what we see today and in the near future. In two years almost everyone will be required to have some form of health insurance. In order to force this on people, health insurance “exchanges” will be created to accommodate the varying income levels of people. It is not entirely clear today how these exchanges will actually work to the benefit of the insureds or the insurance companies.

   One of the criticisms of Obamacare is that it is a thinly disguised plan to force everyone out of private insurance and choice into these exchanges, which will be managed by some federal agency. Trying to understand the deluge of verbiage on this topic is like trying to nail Jello to the wall. The truth is no one seems to know how this would really work. In the breach, we already see companies adhering to new law to be by offering coverage extensions to children up to age 26 who are living at home with their parents. This raises more problems for companies who are trying to peer into the crystal ball to see what they’ll be on the hook for in two years.

   Many companies admit they might just drop health insurance benefits for their employees. Rising costs, more liability, and confusing laws and rules, guarantee more owners will throw up their hands in disgust and opt out of the system. The owners are also looking at options that help them force more accountability and self-care on their employees. These options include Accountable-care organizations, reference-based pricing and defined contributions.

   Accountable-care organization reward health providers who cut expenses while maintaining good performance. These organizations can be physician owned, physician and insurance company owned, or some other combination. Reference-based pricing lets the company declare what it is willing to pay for services. Employees are then responsible for finding health care providers willing to work for the amount offered. This price shopping still allows employees to choose a higher-priced provider, but the employee must pay the difference in prices. Defined contributions means the company gives employees a set amount of money to purchase plans where they wish. Any difference in prices must be absorbed by the employee. These plans are available on an exchange, so employees will have more choices in this plan.

   All this presumes employees will see the benefit in these changes. Most people have gotten used to some form of HMO, PPO, or other network system with predictable premiums, co-pays, deductibles and so forth. This future is starting to look like the wild west of health care and insurance exchanges. We will have to actually read the information from different companies, plans, and exchanges to decide where and how to best protect our families with health care. This could be a confusing time ahead.

   We need more information and education in order to make this complicated plan work. Or, better yet, we could scrap the plan before it fully vests and find a better way to insure Americans that allows doctors to practice medicine and keeps us all honest. Can someone please invent a better mousetrap soon?

Have a terrific day!

Patricia

Healthcare plans for 2012

   ‘Tis the season…for open enrollment in healthcare, from company benefits to Medicare. Unfortunately, most of us won’t be getting many sweets in our stockings this year. What we can expect to get is higher deductibles, higher out-of-pocket costs that will surely continue rising, fewer options in doctors or networks, more aggravation and longer waits.

   The impetus behind increased costs to employees is simple: increased costs across the board for everyone. Employers can not absorb the increased costs in health care. They are being pushed into a corner with expenses. The only viable solution is to pass on the costs and encourage their employees to manage their own health care in better ways.

   Some firms may offer financial incentives to stop smoking, start exercising, lose weight, what ever it takes to drop the increased risks of unhealthy living. If you are lucky enough to work for one of these companies, by all means, take advantage of everything you can to improve your wellbeing. After all, your boss will not be caring for you if you become unable to work from illness, you will have to manage yourself. You will be paying the costs for the consequences of living a sloppy lifestyle. To avoid calamity and unmanageable bills, take action now to prevent more problems. This is the message your employer will be sending.

   Some people were caught flat-footed when employers changed to high deductibles mid-year. It is very difficult for a family to swallow a deduction of several thousand dollars. This reminds me of when my children were young and we had to HMO in our town. Every medical visit, prescription, and procedure an required upfront payment and then we had to wait for the reimbursement of 80% or less. Strict budgeting is necessary for families with young children who might see a doctor more frequently than someone who is older. This is a system requiring tough choices for families. And for employers.

   People have to pay more attention to choosing their health care plans and reading the information on how the plan works. You might want vision insurance, but if your premiums are lower without it, leave it on the table. Unless you have serious eye problems, you can get an eye exam and glasses at discount retail places such as Eye Masters for less money than the premiums on vision insurance in most cases. This is not true for all people, but it behooves you to check it out. Do not waste precious premiums dollars on something you can buy for less elsewhere. The same is true of prescriptions: ask for generics, join a prescription plan at your pharmacy, or use a discount pharmacy. Be a smart consumer with health care!

   The news will continue to get worse. You can expect prices to rise next year. You will have to find out how you can use Flexible Spending Accounts or Health Savings Accounts to complement a higher deductible. Expect fewer options in the future. If you are wondering why the squeeze, consider the following. If employers are pummeled by health care costs, they might decide to eliminate health care benefits for all employees. This could be especially true of small businesses that lack sufficient income to offset rising costs. The new health care rules require everyone to obtain health care insurance. If employees can not obtain health benefits at work, they will have to look elsewhere. Cynics might say this is a great way to force people into a healthcare system under government control. If it looks like a duck and quacks like a duck…

 Have a terrific day!

Patricia

Entrepreneurs, real life solutions, and no government interference

   An article in the October 22 issue of the Wall Street Journal revealed the invention of new robots that let paralyzed people walk again. This isn’t science fiction…it is the result of work and research initiated and funded originally by the Defense Advanced Research Projects Agency (DARPA). The impetus may have come from the need to find ways to put injured soldiers back into the mainstream of life. The great news is that entrepreneurs are springing up to find ways to make the most efficacious and least expensive robot to sell.

   The robots resemble exoskeletons. A walking skeleton, if you will, that holds up a flesh and blood person. When strapped onto these robots, the person with paraplegia can walk again, move around, perform ordinary daily tasks of living. This is nearly miraculous in terms of integrating technology and solutions for people with debilitating injuries. Imagine someone with a spinal cord injury who was told he could never walk again getting up and walking around a room! This is a dream come true

   Companies world-wide are developing these robots, each wanting to take the pinnacle in the market place for providing and selling the robots. The good news is that creativity, innovation and entrepreneurship is alive in well on the planet. The bad news, you guessed it, some interference from the federal government.

   First the Food and Drug Administration has put up road blocks for these devices because, unlikely as it seems, they can’t control the robots. FDA requirements are more intrusive on these personal devices. This means robots made outside the United States experience difficulty getting FDA approval for imports to the US.

   The market potential for these devices is huge. But will we place the ability to control companies above need? If past experience is any indication, the answer is yes. The best way to ensure people who need help to walk again can get that help is for the feds to refrain from stepping on the toes of entrepreneurs and their companies. The future is here for new hope and life. We don’t want to see that hope squelched by excessive regulation.

Small Business Challenge: What Does Health Care Reform Require?

   Do you know what the heath care law requires of you, Mr. or Ms. Business owner? Do you know when these provisions and laws take effect? Your responsibilities are about to change, so you want to be on top of the new challenges to running your business. Here are some basic points about the Patient Protection and Affordable Care Act. This information comes from a quiz on the PPACA in the August issue of Employee Benefit Adviser magazine. It is a short take on a long bill, so it is not inclusive.

   Employers with “Cadillac” plans must implement their plans starting in 2018 and are responsible for the excise tax calculations on these plans. Most small businesses do not offer these plans. Cadillac plans are often offered in businesses with unions. Plans that not collectively bargained would not lose their grandfather status if there is a change in third-party administration, but they would lose the status if there is a change in cost-sharing, scope of benefits or insurance carriers. Many companies with the best Cadillac plans have sought, and received, waivers from the federal government to exclude them from the provisions of this law, stating the law is too onerous for them. Good luck trying to obtain an exemption for your business, however.

   Large and small employers will be allowed to offer insurance through state health exchanges, but the states will decide which employers can do so. Employers must offer health coverage for every employee working at least 30 hours per week. Beginning in 2014, employee waiting periods after enrollment can not exceed 90 days. In 2013 employee annual Flexible Spending Accounts (FSAs) will be capped at $2,500. These benefits must be used. If the money is not used it is lost to the employee. Expect to see some confusion about FSAs, Health Savings Accounts, Medical Savings Accounts, other cost-saving plans. Most of the changes in this Act will transpire in 2014, so we have a couple of years to figure out what to do.

   The Small Employer Tax Credit will cover businesses with fewer than 25 full-time employees. It is unclear what that could mean right now. Any business with more than 200 full-time employees is required to automatically enroll all new employees in a health plan. When companies are enrolling their people, they have to provide an “opt-out notice” at the same time. Employees will have the opportunity to decide if they will participate through their employers. If a company has fewer than 100 employees, it can establish a Cafeteria Plan. These plans are allowed under the Internal Revenue Service code, Section 125 plans. These plans can benefit employers and employees by saving on taxes paid while offering a variety of products that can be voluntary. Please see www.IRS.gov for more information on these plans.

   Some requirements of the plan state that chiropractic services need not be included as an essential service. The new rules allow families to choose a pediatrician as a primary care provider and dependent children must be covered until age 26. After January 1, 2014 no one can be excluded from coverage for a pre-existing condition. There is confusion about lifetime limits on the coverage provided. While not germaine to the problems of business owners as a group, your employees will need help to understand the rules. For instance, nonessential benefits have lifetime limits; some limits could violate the Americans with Disabilities Act (disabilities tend not to disappear over a lifetime) and state laws could prohibit certain benefits. Lifetime is a vague term, especially in legal contracts with providers and purchasers. If people start to life well into their nineties, lifetime benefits for all could become a Pandora’s box for the parties involved. The fun is just beginning in trying to decide what this means for you and your employees.

   These are just a few little teasers about what is part of the PPACA and your business responsibility. About 10 days ago the 11^th Circuit Court of Appeals in Atlanta ruled the Act unconstitutional. Conventional Wisdom, aka the pundits, are saying this Act will appear before the United States Supreme Court by next spring at the latest. This will prove to be an interesting fight. Meanwhile, back at the ranch, I will keep providing you with some essentials on the Act to keep you informed. You want good information to make good decisions. Stay tuned.

Have a terrific day,

Patricia

Health Care Reform Impacts on Small Business

   Last week I started writing about the consequences of Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act on small businesses. This week the focus is on a policy analysis report written by John L. Ligon and published by The Heritage Foundation on their website at www.heritage.org. As I wrote previously, beginning in 2014 new taxes will be levied on small businesses. The tax burden on business will be used to help pay for the insurance premiums of employees receiving health care through state sponsored exchanges.

   The Act relegates these taxes to companies with 50-199 employees. But smaller companies will be swept up in the taxation frenzy to meet the increased expenses. As more health insurance companies opt out of offering individual policies in states, more people who purchase their own health care will be forced into the state exchanges, forcing the tax increases.

   In addition to increased taxes, as business owners are forced to pay even higher rates to offset these expenses, they will be less likely to have the money to pay for additional hires, increased wages, and benefits for existing employees, expansion, and other costs incurred in running a business.

   Ligon points out five areas where the reform penalizes small business owners.

1. Higher health care costs. These pertain to businesses that provided group policies. Heritage analysts project in increase for employers and employees for help pay for the exchanges. Many smaller firms will drop their group coverage when it is impossible for them to purchase health insurance for their employees.
2. Ineffective Small Business Tax Credit. Businesses will not be able to absorb the additional costs and the tax credits won’t counteract the increased costs.
3. Higher Regulation Compliance Costs. Businesses are not prepared to meet compliance issues with current staff. Someone has to read and respond to all those new regulations.
4. Medicare Taxes on “Flow-Through” and Investment Income. Medicare taxes will increase, as well as business taxes paid outside of payroll tax. It is coyly termed the Medicare Investment Tax. Business owners will be paying into a fund from the money they earn, increasing their taxes yet again.

   Job creation cannot compete with tax revenues. If you are paying additional taxes for health care premiums and “investments” you won’t be creating new positions that put people to work.

   Please see the original article, complete with references, on the Heritage website. Stay tuned here for more information on Obamacare.

   Have a terrific day!

Patricia

Small Business and Health Care Reform

   First, a word of caution: wait. Wait and see what transpires in health care reform. Whatever I write today will probably change this year, next year, or the year after. The Patient Protection and Affordable Care Act, better known as Obamacare, is being challenged by most states. The latest kerfuffle was initiated by the Thomas More Law Center. It filed suit because the law stipulates that people who choose not to participate can be taxed under the Internal Revenue Code.

   Did you get that? If you do not want to engage in commerce, in this case the purchase of a product of insurance, the government has the power to tax and punish you. Not exactly freedom of choice, is it? The law was upheld in the Sixth Circuit, but one of the dissenting judges in the Sixth Circuit said, “If the exercise of power is allowed and the mandate upheld, it is difficult to see what the limits on Congress's Commerce Clause authority would be.” (Italics mine.)

   Indeed.

   In January 2011 federal judge Roger Vinson quoted President Obama declaring in 2008, “If a mandate was the solution, we can try that to solve homelessness by mandating everybody to buy a house.” Clearly the President uses flexible thinking when it’s his pet project. Nevertheless, 27 states have sued over the Act. At heart lies the right of states to determine for themselves what their citizens can do. Never before has anyone suggested that the federal government can force people to purchase something against their will.

   The egregious behavior only begins there. How would you like to be the enforcer of this twisted law? As a business owner, you would be. Here is the mechanism, as outlined by the Congressional Budget Office, that estimates revenues of $36 billion, yes billion, would be collected in a decade. You would have to deduct the penalty payments from your employees’ paychecks.

   Massachusetts uses a similar program now and the state discovered there are people who are more willing to pay the fine than are willing to be forced to purchase insurance they do not want.

   Those of us who sell insurance and financial services products and tell our potential customers that we will never try to sell them something they neither need nor want will find this impossible to swallow. Those of us who are business owners definitely do not want to become collectors of fines for the feds. No matter how you dice it, this is not what most of us signed on to. If you’re bothered by this, for any reason, make your opinion known. In the mean time, attorneys general in the states are filing suit. Health insurance is one thing; forcing people to engage in purchasing products against their will is something else. Today the issue is insurance. What will tomorrow bring?

Have a terrific day!

Patricia

Under a Blood Red Sky
   Chicken Little is famous for running about crying, "The sky is falling!" without any evidence to support the claim. Our current economic mess has produced a new crop of chickens crying about this and that. The truth is that our debts have grown so unwieldy we are like the sailers under a blood red sky...the storm is coming and we can only prepare for, not prevent, the changes.
   What can you do to make adjustments? Financial services and insurance products are changing and keeping track is dizzying. Make sure you find a trusted benefits advisor to help you discover choices that provide your employees with great options. Your benefits advisor is a consultant and educator. According to the May 2011 issue of Employee Benefit Adisor, 39% of American adults cannot read and understand the language used in insurance and financial services products. That is an astonishing number of people who are purchasing products they don't understand. People need help in finding the right products for their families.
   Your advisor can consult with your employees and recommend specific solutions to their problems. By bringing information to your employees, confusion and misunderstanding can be lessened or avoided. Voluntary benefits work in ways that are significantly different from major medical benefits and your employees need a good working knowledge of the difference. Few people have enough disposable income that they can afford to squander their dollars on inadequate or unnecessary products.
   Establishing a good working relationship with your advisor is essential. People trust you and your employees to do an excellent job on what you sell; you and your staff should be able to trust your advisor in the same way. That trust is doubly important now when enormous changes are taking place in major medical, voluntary, and elected benefits. As we encounter changes in tax laws, withholding, death taxes, and pre and post tax deductions, we need clear definitions and suggestions in our businesses and personal lives.
   Change is constant; chaos is the natural order of the universe. Being prepared for the road ahead is wise. Schedule an appointment with your advisor to discuss how you can prepare yourself, your business and your staff for the changes.
Have a terrific day!

The Beat Goes On...

   It has been a few weeks since my last posting. We have had two major events in our family since the beginning of May. The first was the unexpected death of a beloved family member. Even though we all understand that our loved ones will die sooner rather than later as they grow elderly, it is still sometimes a shock when we find ourselves unprepared. That is what happened to us. Yet, while we grieve, the beat goes on. The second event was the blessing of a new baby who arrived on the scene several weeks early, but healthy nonetheless. Even as I write this, the little newborn grows, fills out, and notices his little world. The beat goes on...life continues with or without us. But we do make a difference. And we can continue to make a difference by touching the lives of so many people.
   What kind of difference are you making in your business and in your community? Are commiting your passion and time to grow your business, to learn more about what you do in order to be more effective? Do you help your employees learn how to grow and become more adept at their jobs within your company? If you are a solo practitioner do you keep abreast of changes in your profession or field? Finally, are you committed to making  a difference in your community? Do you volunteer at church, school, a civic club or nonprofit organization? If not, why not?
   One of the blessings of being alive is helping people grow into what they can and should be. Your life touches many other lives. You can be someone who motivates and encourages others to be their best. Your example can touch hundreds or thousands of lives by what you say and do each day. Let your enthusiasm and passion kindle a fire in the people around you.  Your life is not necessarily measured successfully by the amount of money you make, but by the way you extend yourself to other people.
   Make the commitment to share your best with everyone you meet. Your life can be a shining light for someone else and it will make a difference.
Have a terrific day!
Patricia

Financial Wellness for Your Business Starts Here

Financial Wellness for Your Business Starts Here

   Dave Ramsey has a Financial Wellness program for small business owners. It isi designed for large and small business to teach personal money management to you and your employees. The classes are taught by Dave himself and offer video lessons, workshops, and group discussions. Dave’s website says, “Because we believe that personal finance is 80% behavior and only 20% head knowledge, our goal is to change the way your employees manage their money. Winning with money doesn't happen overnight. That's why Financial Wellness is designed to teach your team a step-by-step process to overcome debt and develop a long-term plan with their money.”

   Dave’s team claims the program can help reduce turnover and build community and loyalty at work. That’s a tall order, but the Ramsey group has a proven track record on return on investment.

   Next to your product, the most important asset you have is your employees. The way you manage your employees and they work together will make a difference in your company performance and your bottom line. As more owners work to improve employee relations, they find financial concerns are the number one priority in people’s lives. If you want your people to be more engaged in their jobs instead of stressing about their finances, help them get a personal money makeover.

   Ramsey says you can “Improve the performance of your team by adding stability to their lives. Financial Wellness offers a turn-key solution that will address benefit challenges such as:

Lack of participation in benefits packages

Frequent withdrawals from retirement plans

Income garnishments

Requests for payroll advances

Employees unprepared for retirement

   This common-sense approach and entertaining presentation will bring clarity to important, but often overlooked, matters of personal finance: saving, investing, eliminating debt, managing household income, and much more.”

   At least 70 percent of Americans are one paycheck away from insolvency. They are living from one check to another, have no savings, no emergency fund, depend upon credit cards, loans, and robbing Peter to pay Paul to get through life. Most Americans do not know how to manage their money and no one hgas really taught them how to prepare for the financial necessities of life. In fact, ost Americans will end up spending their Golden Years, as it were, in poverty because they are unprepared for life and for retirement.

   As your employees learn how to manage their money, they will begin to take advantage of benefits that will help them the most. They will learn to budget, save, have emergency funds, get out of debt, start investing in their retirement,  and have a future. They will learn to tell their money where to work, instead of working just for money.

   People who are financially secure and planning for their future will be much more content and productive. They’ll also spend more time at work instead of staying home with imaginary illness. Happy people make for a much better work environment

   If you are interested in seeing a dramatic turnaround in your place of business and the live of your valuable people, go to www.daveramsey.com and check out his programs. You’ll be glad you made the investment.

Use Plain English with Your Customers

   When Possible, Use English. That’s the headline for an article in the May 2 edition of The Wall Street Journal. That advice is given to financial advisors who might speak jargon to their clients. It turns out that people are happier and more satisfied when you speak plainly to them.

   Invesco Ltd., a fund managing firm, surveyed 800 of their customers to find out what would make them happy. Using ordinary speech to describe products and investing make a big impact on the customers. The WSJ article gave some vivid examples:

“Finance people may talk about “equities,” “fixed income” and “asset allocation.” Normal people talk about stocks, bonds and diversification.”

   The point is that we tend to lapse into our specialized area of expertise using jargon that is confusing or meaningless to other people. Since jargon is endemic to our way of doing any kind of business or occupation, the chances are that you talk “funny” to your customers too.

   If you want to make a sale and keep a good customer, you have to relate to your customer in a way that doesn’t demean him or make her look foolish. You can always show off your knowledge and vocabulary to people in your field. When talking to ordinary people, make the effort to describe what they need in terms that make sense to them.

   Another tactic the customers who were surveyed disliked was trying to scare people into a sale. This touches a raw nerve in many people. In my life I’ve heard countless people tell me that if a salesperson asks the question, “Don’t you care about your family?” my friends or acquaintances would answer with a resounding, “NO!” Scare tactics are not necessary and they irritate people almost as much as jargon.

   If you want to know the secret of excellent communication, you have to understand that your customer wants respect and honesty from you. Don’t talk down to your customers; don’t try to impress your customer by making him or her feel inferior. Try to imagine yourself in his shoes. Treat her the way you want someone else to treat your mother, wife or daughter. Stop trying to put yourself firs, and put that customer in first place. You need a few things to succeed in business: you need good customers and good employees.

   Mary Kay Ash, founder of Mary Kay cosmetics, used to tell her consultants to look each customer in the eye and pretend that the customer was wearing a sign on her forehead that said, “Make me feel special.” That technique worked beautifully for Mary Kay. It’s still sound advice for anyone who deals with people.

Have a terrific day!

Patricia

How You Can Benefit from a Cafeteria Benefit Plan

  Cafeteria Plans are benefit plans that fall under the Internal Revenue Code in Section 125. The plan is set up by employers to help employees have benefits on a pretax basis. Employees can have qualified benefits that allow them to make choices about where their money goes for insurance and medical insurance purposes. These pretax benefits can help employees and employers save money.

   Qualified benefits do not defer or delay compensation for work. These benefits can include health savings accounts, group term insurance, dependent care assistance, adoption assistance, and accident and health benefits. They do not include long-term care assistance or Archer medical savings accounts.

   All plans must be written and specific. They must include eligibility rules and include both taxable and nontaxable benefits. If a plan has only taxable benefits, it is not in compliance with Section 125 of the IRS Code and will be treated accordingly. By offering both taxable and nontaxable benefits, the employer meets the criteria for establishing a Section 125 plan. The plans will cover employees and their families and may cover retirees and their spouses.

   Why is the plan beneficial to employees? When employees deduct part of their income to purchase insurance plans, that amount is deducted from their gross wage before taxes are applied. Let’s use a simple example:

After Tax

Employee gross wage is $1,000

Taxes                                     250

After tax income                   750

Insurance                              100

Spendable income             $650

Pre Tax

Employee gross wage is $1,000

Insurance                              100

Taxable income                    900

Taxes                                     225

Spendable income              $670

   Here you can see the employee gains $25 in take-home pay using a cafeteria plan. The employer can save money as well. Using the same figures above, the employer pays 7.65% in FICA taxes, 15% in Federal taxes, and 2.5% in State taxes. Using the cafeteria plan, the employer would save $7.65 on this employee per pay check. Multiplying tax savings by every employee can add up to significant savings for employers. The more employees an organization has, the greater the savings. With these plans, small business owners can save on each employee.

   There are businesses that will set up and administer your S125 plan for fees. There are other options, however. Some companies will set up the plan and help you for fee. Another feature to look for is whether a plan is friendly or unfriendly. Some plans that are set in place have no provisions for other products or companies, thereby reducing the choices available to employers and employees. Look for a plan that is friendly and will help you have the greatest choices that will benefit you and your employees.

   Why does this matter? Let’s say you set up a plan with a company that is not friendly. You initially get your major medical insurance with a company, but after a year, you determine you can get better coverage or rates from another insurance company. Your plan does not allow you to change your medical insurance. For example, if you set up a cafeteria plan under Aflac, you have the options to make changes in your major medical provider and other benefits. Aflac is known as a “friendly” system for that reason.

   For more information, you can visit the IRS website at www.irs.gov for the rule and regulations regarding Section 125 Cafeteria Plans. The information for this article came directly from that site. If you want more information, you can also contact your accountant, a CPA, your financial planner, or even an Aflac agent.

Have a terrific day!

Patricia

How to Handle Your Debt

   If you own a small business, you might have business debt. It could be a large amount, a small amount, but in any amount it prevents you from investing your income into instruments that make you money. How do you tackle this debt, how do you classify it, and what steps can you take to eliminate it?

   Just as with your personal financial life, you need to stock of your situation and treat your business debt. In Total Money Makeover, Dave Ramsey advises you put business debt into a “debt snowball” to be paid down as quickly as possible Ramsey tells people that beginning with the smallest debt, pay it off right away and it gives you a sense of real accomplishment. You apply the same principle to your small business debt. Perhaps you have a credit card balance or equipment loan to pay. Pay it off now. Then you can use the money you paid on that loan to apply to the next largest loan. By using this method you will eliminate your accumulated debt.

   Ramsey says by starting small, paying off the smallest debt first, you not only feel good about the progress you are making, you provide additional funds to pay off the next highest debt, your interest payments will reduce as the principle is paid down, your financial stability strengthens and you will see there is a way out of the mess you created. As you pay off small and medium debts, the larger debts become more manageable and you know with certainty that you can get out of debt and begin to save money.

   The goal of this method is to establish an emergency fund, a savings account, pay off all your debt, and begin investing in your future by putting money into financial instruments that work for you, instead of you having to work to pay off debt. Here is what Ramsey says in his book, Total Money Makeover, “With gazelle intensity, great focus, extreme sacrifice, selling things, and working extra, we clear all debt. Again, if you are fired up, normally this will happen within eighteen to twenty months. Many people find a way to shorten the time with sheer intensity, and God tends to pour blessings going in a direction He wants them to go.” Finding your way out of debt will help you find a way to have a life again.

   The mounting debt we accumulate in our personal lives and business lives takes years creates stress that shortens our lives. Running a business is not the same thing as running your household, but there are some common practices in both arenas. When you spend far more money than you can make, your income goes out to pay off debt, leaving you angry and frustrated that you can’t really “live” because of your debt. You chose immediate gratification over financial wellbeing. That might sound harsh, but it is the truth.

   You might run a business where constant debt turnover is a fact of life. You can still apply the principles to your overall strategy. Remember this, as you free up your income from paying off debt to investing, you will have more money. You can pay cash for your business needs. It is not impossible and there are companies who operate in this way. The more cash you have, the better your position, the less chance you have to pay more for what you need because you have to finance your purchases.

   With an emergency fund in place, savings in place, and debt reduction an ongoing function of your financial life, you can begin to plan how to increase your business, or change the way you do things in your business. Your options will increase as your debt decreases. Even if you are a solo practitioner who is a consultant, you will find stress levels decreasing if you have provisions for times when business is slow. If nothing else has transpired the past four years, our awareness of our lack of security has risen. We now know that no one is guaranteed a job, or customers, or our income remaining stable. The best thing we can do as individuals and business owners is to prepare for the difficult times even while we enjoy our lives every day.

Have a terrific day,

Patricia

Money Makeovers for Your Small Business

   Last week we took a short romp through Dave Ramsey’s Total Money Makeover for your personal finances. (If you haven’t gotten it yet, shame on you! I told you it would save you your financial life…now get busy!) This week, we will take a peek at using some of those same ideas in your small business. It doesn’t matter if you are a one woman show, an LLC, have three employees, or 95, these principles will apply to your situation. You cannot afford to ignore what has happened in our economy.

   A brief reflection on the past four years of economic wasteland is in order. We got into this mess for several reasons. But underlying all the rhetoric about Wall Street, mortgages, big business and unemployment, is one truth: we spend money we don’t have, so we have to borrow more money, and then we can’t pay it back.

   The real estate business declined, is declining, and will continue to decline, because for many years people with no real income, or no ability to pay a mortgage, got loans. Liar loans, tweaking numbers, ignoring all good sense in lending, and whatever else went on, the industry forgot that loaning money requires an ability to pay back the loan. Those loans were then bundled into securities packages and sold as investment instruments to people who should have known better than to buy poor securities. Ah, well, hindsight.

   Businesses can’t spend money they don’t have, either. It is particularly painful for small businesses now because lenders clutch their assets tightly to their chests. Loans are hard to get, making expansion difficult. Business owners feel the squeeze. There are some things you can do to increase your financial stability.

   First, you need to work on a realistic budget for your business. You must take the time to devise a budget that is based on actual numbers and projections. John Maxwell says, “A budget is people telling their money where to go instead of wondering where it went.” Your budget has to include all expenses, not just the major ones such as rent, utilities and insurance. You have to have cash flow, emergency funds, equipment repair and replacement, labor costs, and so on. Write down every thing you spend money on during the year…including the coffee, cream and toilet paper! Denying what you spend will not save your bacon. It will burn it.

   After your budget is finished, establish your savings account if you don’t have one. Make sure you pay yourself in the savings account first. If you do not follow this simple rule of money management, you will continue to sink. You need a personal and business savings account. Emergencies arise, things go wrong, life happens, as they say. You need money to take care of the problems. Don’t be foolish about this. This is the foundation of your new financial life. If you need to hire a professional to help you get your business financial house in order, do so. You don’t want to lose your business or continue to suffer needlessly.

   If you aren’t setting goals and making plans for your business and how your business financial needs are handled, you’re setting yourself up for failure. The only way to get out of this task is to die.

   In our personal financial lives we need to live on cash, and as much as possible, so do our businesses. Business owners can get themselves in real financial trouble borrowing far more than they can reasonably repay if there is a downturn in the economy. Ramsey makes the point in his book that when you pay with cash, you spend less money. The same holds true in your business. Paying cash saves you hundreds, thousands, or millions of dollars, depending upon your business and its size, and that is real money you can keep in your account, where you need it.

   Believe it or not, making a budget and paying cash are part of your cost containment strategies. You need to know how much money is going out, where it’s going, when it’s going, and how it’s going. You need to track every cent you spend and make sure you aren’t paying more than you need to because you don’t pay cash. Using credit unwisely leads to losing everything. When your budget is finished, your savings set up, your expenses paid for in cash, you can understand clearly just how much money you need to bring into the business to pay bills and have a profit.

   If you have lines of credit, or credit card balances, for your business, work on paying off all balances as quickly as possible. Start small, paying off the smallest amount first. As you eliminate each debt, your sense of freedom and accomplishment will grow. And the best part is that your business will gain stability and solvency. That’s a great business practice!

Have a terrific day.

Patricia

Get a Grip on Your Finances Part Two

   In the dedication page of his book “Total Money Makeover” Dave Ramsey praises all the people who have had the courage to change their financial habits to transform their lives. They did this because they “lived like no one else so later they could live like no one else.” This is the secret, if you will, to get financially fit. You must change your habits and live like no one else. That means you will stop living like your family, neighbors, coworkers, and most people you meet. You will have to resist the siren song to spend, spend, spend and the seduction of material goods. You will have to find out who you are and know your self worth somewhere besides your finances.

   Ramsey begins his book declaring that it is not a complicated scheme, a guide to investing, a get rich quick idea, a new idea, written by someone with no academic credentials, politically correction, wrong, or the same as his other books. He also modestly points out that the book is not getting complaints or criticisms from the people who have read the book, followed its principles and chosen to live their lives differently. After all those caveats, he gets to the actual steps involved in how to get a grip on your finances.

   The chapters in the book are as follows:

1. The Total Money Makeover Challenge
2. Denial (I’m Not That Out of Shape)
3. Debt Myths: Debt is (Not) a Tool
4. Money Myths: The (Non) Secrets of the Rich
5. Two More Hurdles: Ignorance and Keeping Up with the Joneses
6. Save $1,000 Fast: Walk Before You Run
7. The Debt Snowball: Lose Weight Fast, Really
8. Finish the Emergency Fund: Kick Murphy Out
9. Maximize Retirement Investing: Be Financially Healthy For Life
10. College Funding: Make Sure the Kids are Fit Too
11. Pay Off the Home Mortgage: Be Ultrafit
12. Build Wealth Like Crazy: Arnold Schwarzedollar, Mr. Universe of Money
13. Live Like No One Else

   The reason I listed the chapter titles is to give you a peek at the topics Ramsey covers in his book. Rather than giving you dry statistics about money, debt, stress, divorce, and all the other ills associated with money madness, he writes clearly and simply about how to get out of the slavery of debt and financial stupidity. He doesn’t lecture about the results; he includes testimonials of real people who have used the system to change their lives forever. The people giving the testimonials are ordinary people who got in over their heads in ordinary ways. These aren’t compulsive gamblers, people with mental problems that caused them to throw money away, or some other pathology. Most people in this country got into trouble one poor decision at a time.

   There is reason to have hope if your life is in turmoil over finances. The first thing you have to do is stop saying you don’t have a problem. I would say to you that if you have consumer debt other than a mortgage, you might have a real problem on your hands. Unless you’ve been living under a rock the past four years, it should be abundantly obvious to you what happens to people who are in over their hands with their money. If you lack financial stability and disaster strikes in your work life, such as losing a job or losing hours, your life quickly becomes a nightmare. But you don’t have to spend your life in darkness. There is a way out of the mess, it is a proven method, it works for everyone, and the underlying concept for it is simple.

   Ramsey’s method does not involve consolidating debt (something that usually brings the debtor into more trouble) or declaring bankruptcy. What is involved is a total commitment to follow the system, get out of debt, and stay out of debt. People who pay out all their income to cover debt are not putting aside money for investments in their future, their children’s future, or the ability to help anyone else. People living from paycheck to paycheck, whether they are very poor or very rich, suffer the same problem: they are not living, they are enslaved to the debts they owe.

   If you are in bondage to your mortgage, car payment, credit cards, loans and your life is miserable, take heart. You can stop the madness. You can control your financial life. Begin by taking small steps. Freedom is in your future. Get a system, stick to it, and free yourself to actually live and enjoy your life instead of constantly stressing and suffering. Get Dave’s book and read it. Make the decision to change your life, make the commitment to stick to a plan and a budget, and find a new way to live.

Good luck and have a terrific day!

Patricia

Getting a Grip on Your Financial Life

   Whether you own a business, run a business for someone, or couldn’t care less about business, this topic is for you. Dire prediction first: if you don’t get a grip on your financial life, it will get a grip on your behind. And it will never let go and let you live in peace.

   People have flung around pejorative statements about economics for ages. One thing is certain, however, that money makes the world go around. That is also true in your personal finances. In order to have peace of mind, the ability to think and problem solve creatively, and see your dreams come true, you must be in control of how your income is derived and how you spend that income.

   One of the financial gurus for financial fitness today is Dave Ramsey. Ramsey, through personal financial disaster, has developed a system for helping people learn to manage their money, and consequently their lives. Financial problems cause more disease and ailments than I care to mention here, as well as marital stress and breakups, family problems ranging from lack of basic subsistence to lack of educational choices, and ultimately will destroy your emotional and spiritual wellbeing. Money is not the problem. Go look in the mirror to see the real problem. But Ramsey has a way to help you get out of the mess and get a new life.

   Ramsey has written several books, articles, a total program called Financial Peace University, and has a radio broadcast, in addition to appearing on numerous television programs. His golden rules are straightforward, no-nonsense, easy to follow. The best part is that he offers real, demonstrable hope to all who have financial difficulties. You can overcome your problems, start over, and live a life of wellbeing.

   Ramsey destroys commonly held myths about money. First among these: you can live without credit. (I can hear the gasps now!) Outside of buying a house, you don’t need to buy a single thing on credit, says Dave. He points to the problem of buying into the belief system that we are somehow “entitled” to live like kings when we have a serf’s income. He points out that overspending and mounting debt will kill you. He encourages you to relinquish the idea that you need to get cash advances, use your credit cards for daily living, buy things you don’t need on a rent-to-own basis, and why debt consolidation is a trap.

   While you’re howling at this, find a copy of his book, The Total Money Makeover, and read it cover to cover. That will make a believer out of you. The book is filled with practical steps and advice for getting out of debt and succeeding at money management. It has very moving testimonials from real people who put the system to the test and transformed their lives. Imagine being thousands of dollars in debt, and in a short period of time, being debt-free with healthy savings, investments and sound strategies for living the rest of your life. Are you intrigued yet?

   Ramsey claims the only real way to get out of your troubles is to understand first of all that you have to renew your mind. By that he means using biblical principles for dealing with money (there are over 800 scriptures dealing with money,) and giving up the foolishness that passes for conventional wisdom in our culture. You simply cannot continue living beyond your income and think your life will have meaning. Every single thing you spend money on has no lasting value, can be destroyed in the blink of an eye, and costs way more than it’s price tag if your finances are in the red. Ramsey demonstrates over and over that listening to the voices of greed, lust, envy and covetousness leads us to think we have to outdo everybody in our family, neighborhood, whatever criteria you choose to use. You know, doing the same thing over and over and expecting different results is insanity. So spending more and more money hoping to somehow purchase happiness will not work. How has it worked out for you so far? If you are up to your eyes in debt, you know how unhappy you really are. So, are you ready for a change of pace? Let’s get it on, then.

   Next time I’ll share some of the principles in Dave’s book. If you can borrow a copy, do so. At some point you might need to buy the book. Even better, find a Financial Peace University class somewhere near you. The classes run for about 12 weeks and will transform your life. In the meantime, check out Dave’s website at www.daveramsey.com. Thousands of people and major national corporations can’t be wrong if they are touting Dave’s work. You can apply his ideas to your personal and business finances. That’s what we’ll look at next.

Have a terrific day!

Patricia

Blogging and Beyond in Using Social Media

   Blogging is an easy way to begin communicating with your potential customers. Bloggers are people who have a message to share, whether it is family news or a sale in your store. Blogging has become a powerful way to connect with people. You might seek customers for your retail store in your city; you might look for customers for your consulting or business to business sales; you might need customers nationwide for your online store or your services. Whatever it is you want to sale, you can boost customer exposure by blogging. But don’t think that is the only place to share your thoughts. You will also want to use sites such as Facebook or MySpace, YouTube and others.

   Five years ago you would have been absolutely shocked if I told you the future of your business was in a social media site started for acquiring “friends” and acquaintances! Now the idea doesn’t seem silly or strange at all. Businesses have a huge presence on Facebook in particular. Facebook has over 500 million members. Talk about an audience for your message! Not only can you share as much as you want whenever you want, your message can be seen by millions of people in a few hours. If you go beyond a page on Facebook, you can also advertise, adding to your company’s exposure exponentially. Your messages can be different lengths and geared to different audiences throughout the day. But don’t stop at Facebook. Start investigating Twitter.

   The world has gone tweet crazy. Tweets are short bursts of thought or messages sent out whenever you want. You can gain followers on Tweet (be sure your website, Facebook page, and everything else you use sends people to Twitter to follow you.) These little bursts of something, or not much of anything, connect people instantly, especially by cell phone. If you think this sounds crazy, you should understand that entire businesses are devoted to consulting with you about your presence in the world of social communication. If the largest companies in the world make use of these technologies, so should you.

   The reason these methods of communicating are so important is because they are instantaneous. People feel more connected to you when something is going on right now, or today. That immediacy has a powerful pull on the psyche. Sure, people can read older posts or your archives, but the seduction comes from being in the middle of something while it is happening. This feeds our curiosity about what people are doing. You tell people what you’re doing and they develop an interest in following you. This following business is what keeps driving the world wide web and all these blogs, tweets, and websites. You do not want to bypass the most powerful took in business owner’s hands that has ever developed. This makes word-of-mouth advertising look static by comparison.

   If you still feel some doubt or fear, I invite you to take a few minutes and explore online what your competitors are doing. Check out web sites, Facebook and My Space pages, Twitter followers, and blogs. Do a search for bloggers who are talking about businesses like yours. Consider it a very instructive opportunity to bring you much needed information. That information is priceless; but your investigations won’t cost you a cent. Now that’s a good deal for anybody’s business!

Have a terrific day!

Patricia

Why blog for your small business? More social media tips

Why blog for your small business? More social media tips

   Why should you blog? You write because blogging is power. When you write a blog, you will control the message you send out in a way that is impossible if filtered through another party. This is not to say you should give up advertising, telephone page listings, email and newsletter communications. But blogs are immediate, they can be more timely than any other form of communication, they are inexpensive (you do have to use a computer, after all) and you can add or subject anything you want to your blog.

   When you gain control over your message you put yourself at the head of the pack. Business owners who rely upon traditional forms of communication are denying the way culture has changed inexorably since the advent of social media. Does that sound extreme? Let me give you some examples.

   Here are some facts you might not know.

•In 2010 over 57% of Internet users visited a social media site at least once a month

•By 2014, it is estimate that over 165 millions people will use social network sites regularly

•By 2014, over 56% of 55-64-year-olds will use social network sites regularly; over 37% of people over 65 will use social networks

•Over 55 million people in the U.S. visit social network sites monthly

•Twitter users are slightly older than users of other social network sites

•The bad boy of social networks is Facebook with over 500 million users:

            Many are over 35

            Average user has at least 130 friends

            These folks spend over 700 billion (yep, BILLION) minutes each month on Facebook

•More than 240,000 small businesses use social media

   By now you can begin to understand the issue. If you choose not to use social media, your business will be left behind. All kinds of businesses have employees who are blogging in order to share information and drive customers to the business. You might be surprised to learn that includes some of the big boys…such as GM. GM? Right. Having employees blog about announcements, speeches, company details, sales information, what have you, bypasses the public relations department in a way that somehow seems, well, friendlier. People like that informal, person to person touch that is available by using social media.

    You are ready this blog to gain information. I am using this blog to help small business owners. It is not the only way I can provide help to business owners, but it is one very effective way to reach and touch someone easily. If you have something you want your potential and current customers to know, something that you can use quickly and easily, start your own blog.

   If you don’t think you can write or the idea of trying to say something meaningful seems beyond your skills, there is still help and hope for you. Consultants who specialize in setting up and maintaining social media sites are proliferating everywhere. Just look up social media managers in your city and you’ll find a list. You can ask for referrals of other businesses and look at what the manager has done for other people in your area. Usually social media managers charge reasonable fees for their services. If you really can’t swing the fees, then you can find someone to teach you some basics. Most of the sites have user-friendly guides for setting up accounts. If you still feel this is beyond you find a young relative or a friend’s offspring to help. As long as you understand that you, or someone in your company, needs to maintain communication consistently, you will be fine.

   The same advice holds true for websites. If you have a website, do NOT let it be out of date. Lack of attention to details such as these will ruin your credibility. It might seem like a lot of extra work; but you will enjoy the fruits of your labors when your customer traffic improves, as does you bottom line.

Have a terrific day and happy blogging,

Patricia

Your Small Business and Social Media

   You might think social media has little or nothing to do with your business. Nothing could be farther from the truth. Social media will change your business. This week we’ll examine what your competitors and customers already know. You are either in the game or you are outside the stadium. There are no other positions to play.
   Unless you live under a rock you have heard rumblings about Facebook, My Space, Twitter, YouTube and other sites. You might be clueless about what they do and what they can do for you. That will change this week. Blogs are no longer confined to whining about life or sharing something personal. Facebook is not for college students any more. And video sites draw more viewers than traditional television networks. If this surprises you, wait until you hear how they will work for you!
   Blogs used to mean the ramblings of people writing an online journal, or political speech rants, people seeking recognition, or people building an online community around a common interest. Blogs are part of doing business every day in 2011. For instance, you’re reading a blog written by a business owner who shares information about running a small business. If I need to find more customers, using my blog is one way to attract new customers. You can do the same thing.
   Rather than bore you with statistics that you won’t remember, think about this: Most people are reading and or writing a blog for their business. The people get information they want from online sources, including the use of Social Media mediums. Information is available to more people, and customers, than ever before. If you seek more business, you must use these new-fangled means of communicating with people! After all, your competitors have an online presence.
   Let’s address the fear factor: you don’t need to be afraid. You think you can’t write? Find someone in your organization who can write clearly and effectively. The truth is that blogs have different writing styles and voices. However, if you are serious about attracting new business and you can’t string three words together on paper, you might want to pass the writing job to someone who can write. If you need to, hire someone to write for you. Blogs are not novels or annual reports, the fee for a writer who can say a few words each week will be manageable. You probably have at least one person in your business who can communicate well. Ask. Part of the process is having a passion for sharing about the business, which means someone might be willing to tackle the job.
   The next thing you need to ask your self is this: what are my company goals? What do I want people to know about? You can’t just begin a blog with no point to it. Well, people do, but you’re a business owner, not a college student. Decide upon your message and what the long-term agenda is in communicating about your company to the public. This is the same process you need to use in purchasing advertising. You don’t place an ad that says nothing. Your blog has to offer something as well. Remember, in the past you controlled your advertising message and the audience for it. Now, you have lost some of that control. In order to offer a consistent picture of your business, you have to communicate directly to potential customers through a method they use and understand.
   View this brave new world as an opportunity to attract more business or deliver your message to potential customers by using your wits and knowledge. No one knows more about your business than you do. Why are you in business? What do you offer people that they need or want? How is what you do different from someone else? Is there a unique feature to your business that is overlooked? These are the stories you want to tell in a public venue. Whether you are a caterer, retail store or a consultant, tell people what you can do to solve their problems. Next time we’ll look at what some of the big boys do with their blogs.
Have a terrific day!
Patricia