Eric Spellmann continues to be one of the highest rated speakers at our national ASBDC conferences. His unique view that small business websites should “do” something pushes against the standard “online pamphlet” view of most web design companies. He believes your customer’s websites should be driving qualified leads and sales on a weekly basis. Eric speaks at a number of other national and state conferences nationwide, but enjoys running one of the most successful web designcompanies in the country. He truly believes in the SBDC mission as it helped him start his own company many years ago. To contact him, visit his website at EricSpellmann.com.
31 Aralık 2012 Pazartesi
How to get your business online.
To contact us Click HERE
Eric Spellmann continues to be one of the highest rated speakers at our national ASBDC conferences. His unique view that small business websites should “do” something pushes against the standard “online pamphlet” view of most web design companies. He believes your customer’s websites should be driving qualified leads and sales on a weekly basis. Eric speaks at a number of other national and state conferences nationwide, but enjoys running one of the most successful web designcompanies in the country. He truly believes in the SBDC mission as it helped him start his own company many years ago. To contact him, visit his website at EricSpellmann.com.
Eric Spellmann continues to be one of the highest rated speakers at our national ASBDC conferences. His unique view that small business websites should “do” something pushes against the standard “online pamphlet” view of most web design companies. He believes your customer’s websites should be driving qualified leads and sales on a weekly basis. Eric speaks at a number of other national and state conferences nationwide, but enjoys running one of the most successful web designcompanies in the country. He truly believes in the SBDC mission as it helped him start his own company many years ago. To contact him, visit his website at EricSpellmann.com.
A Word to Small Business Owners: Don't Be Afraid to Negotiate Contracts
To contact us Click HERE
All too often small business owners readily accept the terms of a contract or are concerned about pushing back on both economic and legal terms because either they fear losing the deal or simply don't fully understand the terms. As a business owner, you need to recognize that in most circumstances there is an opportunity to negotiate terms of an agreement, and therefore you should not be afraid to seek the best deal possible even if the other party initially seems unwilling to consider your position on key aspects of the contract. So, here is the advice, Don't Be Afraid to Negotiate.
Negotiation skills are one of the most important tools a business owner should have in its toolbox. Therefore, if you receive a contract from a party, read it carefully, and then proactively respond in writing with your comments. One negotiating trick that vendors often try is to provide a form contract, creating the impression that the terms are non-negotiable -- indeed, if I am representing the vendor, I will often suggest creating a form agreement. Any contract, even a form, can be revised by an amendment, so do not automatically assume the agreement must be accepted "as is". The following are among the material terms that business owners should not only fully understand, but seek to negotiate.
1. Term. If you want a longer or shorter contact term, then ask for it. One alternative is to get an option to renew, which should be exercised within a certain number of days prior to expiration of the contract. The mechanics of the option and financial terms should be clearly spelled out as well.
2. Fees. There are many different ways to skin this cat, and you should consider what best works for your business over the term of the agreement. The financial terms can be based on (a) a set periodic payment, (b) an up front payment and then installments, (c) fees that scale up or even down over the life of the contract, (c) revenues, (d) milestones, or (e) a combination of several different fee structures. If the payments are based on revenues, then it is essential that the parties clearly define not just the percentage by the term "Revenue." For example, is it based on Gross or Net, and what is to be included in the Gross and what can be deducted as a legitimate expense when determining Net Revenues? A Net Revenue contract may refer to overhead expenses, like a businesses' borrowing costs, which can be a killer for a party who is being paid based on Net. Make sure you understand the definition, and if you don't ask for professional advice rather than assume the definitions are fair or standard.
3. Financial Reports/Audit. If the consideration under the contract is based on revenues or certain milestones, require periodic financial reports. In addition, you should have the opportunity to review and audit (i.e., challenge) such reports rather than simply accepting the information provided by the other contracting party. In addition, provide a dispute mechanism in the event of a challenge, such as CFO's meet and try to resolve, appointing independent third party, or even arbitration -- and if the audit reveals you were in the right, include a requirement that the other party pays your costs.
4. Termination of the Contract/Suspension. Of course the contract will expire at the end of its term, but include other events that will result in termination: (a) non-payment, (b) material breach, (c) bankruptcy, (d) failure to achieve defined milestones, including financial ones, (e) assignment/sale of the business (see below), (f) departure of personnel if the business relies on certain key employees, or (g) force majeure. Termination clauses will often allow the breaching party an opportunity to cure a default, provided it is one that can be cured. In the case of a force majeure event, the contract can be suspended pending passage of the event or terminated if the contract becomes impossible to continue due to the event.
5. Assignment/Sale of the Business. Do you want the contract to be assignable to a third party, including in the event of the sale of the business. This is an important issue for many types of agreements, such as licensing agreements or service contracts. You can require consent for the assignment, but if you want the contract to be assignable, as an alternative you can propose that it is assignable to an assignee with financial ability to meet the contractual obligations.
6. Warranties/Limitations on Liability. Suppliers/service providers will often provide a lengthy provisions denying all warranties and limiting their liability -- and if you are the vendor, you generally want to push for these provisions. If you are purchasing the the services of a large company, there may be no room to push back on any of the limitations, but whether the other contracting party is a small or large company, there is no harm in trying -- even if they send you the form or the "Master Service Agreement." For either party, it is all about the bargaining power, and how much the other party wants your business versus how much you need the agreement. Even if you cannot get the other party to budge, ask at least for an exception for gross negligence, and regardless a court may negate the limitation based on intentional misconduct or even gross negligence.
7. Dispute Resolution. Avoid an issues as to how disputes are to be resolved by negotiating the applicable (a) governing law, (b) venue for the dispute (meaning both the tribunal that will handle the matter, such as a court or arbitration/mediation, and the geographic location), (c) if there is to be mediation or arbitration, the procedures, and (d) will the parties impose legal fees and costs on the losing party.
8. Remedies. Among the remedies you can include are (a) specific performance, which is important if money cannot cure a default, (b) liquidated damages, if you prefer to define the damages to avoid disputes as to proof the proper compensation for a breach, and (c) equitable remedies (other than specific performance), like an injunction.
9. Non-Compete/Non-Solicitation. Simple vendor/supplier agreements generally won't include these terms, but many other contracts will, including licensing agreements, consulting/employment, certain service agreements, or more major transactions (like sale of a business) to name a few. Enforcement, especially as to non-competes, is a key legal issue, and it is highly advisable to have the provisions reviewed by counsel that understands the law in the applicable jurisdiction as it can vary greatly from state-to-state.
10. Other Terms/Conclusion. If there are other terms included or, for that matter, missing from the agreement, then make these part of the punch list of issues to be addressed with the other party. The reality is that the worse response you can receive is "no", and then you can decide how important the provision is from your perspective. A bad contract is NOT better than no contract. In a competitive economy, even larger/established businesses are often willing to negotiate and "the last and final", "take it or leave it" or "as is" response may be just a bargaining tactic.
The Lesson: Read the Contract, Understand Each Provisions and Don't Be Afraid to Negotiate the Terms.
Disclaimer: The discussions in this blog do not constitute legal advise nor create any attorney-client relationship. You are urged to seek the advice of an experienced lawyer who can provide counsel with respect to your corporate/business law matters.
Negotiation skills are one of the most important tools a business owner should have in its toolbox. Therefore, if you receive a contract from a party, read it carefully, and then proactively respond in writing with your comments. One negotiating trick that vendors often try is to provide a form contract, creating the impression that the terms are non-negotiable -- indeed, if I am representing the vendor, I will often suggest creating a form agreement. Any contract, even a form, can be revised by an amendment, so do not automatically assume the agreement must be accepted "as is". The following are among the material terms that business owners should not only fully understand, but seek to negotiate.
1. Term. If you want a longer or shorter contact term, then ask for it. One alternative is to get an option to renew, which should be exercised within a certain number of days prior to expiration of the contract. The mechanics of the option and financial terms should be clearly spelled out as well.
2. Fees. There are many different ways to skin this cat, and you should consider what best works for your business over the term of the agreement. The financial terms can be based on (a) a set periodic payment, (b) an up front payment and then installments, (c) fees that scale up or even down over the life of the contract, (c) revenues, (d) milestones, or (e) a combination of several different fee structures. If the payments are based on revenues, then it is essential that the parties clearly define not just the percentage by the term "Revenue." For example, is it based on Gross or Net, and what is to be included in the Gross and what can be deducted as a legitimate expense when determining Net Revenues? A Net Revenue contract may refer to overhead expenses, like a businesses' borrowing costs, which can be a killer for a party who is being paid based on Net. Make sure you understand the definition, and if you don't ask for professional advice rather than assume the definitions are fair or standard.
3. Financial Reports/Audit. If the consideration under the contract is based on revenues or certain milestones, require periodic financial reports. In addition, you should have the opportunity to review and audit (i.e., challenge) such reports rather than simply accepting the information provided by the other contracting party. In addition, provide a dispute mechanism in the event of a challenge, such as CFO's meet and try to resolve, appointing independent third party, or even arbitration -- and if the audit reveals you were in the right, include a requirement that the other party pays your costs.
4. Termination of the Contract/Suspension. Of course the contract will expire at the end of its term, but include other events that will result in termination: (a) non-payment, (b) material breach, (c) bankruptcy, (d) failure to achieve defined milestones, including financial ones, (e) assignment/sale of the business (see below), (f) departure of personnel if the business relies on certain key employees, or (g) force majeure. Termination clauses will often allow the breaching party an opportunity to cure a default, provided it is one that can be cured. In the case of a force majeure event, the contract can be suspended pending passage of the event or terminated if the contract becomes impossible to continue due to the event.
5. Assignment/Sale of the Business. Do you want the contract to be assignable to a third party, including in the event of the sale of the business. This is an important issue for many types of agreements, such as licensing agreements or service contracts. You can require consent for the assignment, but if you want the contract to be assignable, as an alternative you can propose that it is assignable to an assignee with financial ability to meet the contractual obligations.
6. Warranties/Limitations on Liability. Suppliers/service providers will often provide a lengthy provisions denying all warranties and limiting their liability -- and if you are the vendor, you generally want to push for these provisions. If you are purchasing the the services of a large company, there may be no room to push back on any of the limitations, but whether the other contracting party is a small or large company, there is no harm in trying -- even if they send you the form or the "Master Service Agreement." For either party, it is all about the bargaining power, and how much the other party wants your business versus how much you need the agreement. Even if you cannot get the other party to budge, ask at least for an exception for gross negligence, and regardless a court may negate the limitation based on intentional misconduct or even gross negligence.
7. Dispute Resolution. Avoid an issues as to how disputes are to be resolved by negotiating the applicable (a) governing law, (b) venue for the dispute (meaning both the tribunal that will handle the matter, such as a court or arbitration/mediation, and the geographic location), (c) if there is to be mediation or arbitration, the procedures, and (d) will the parties impose legal fees and costs on the losing party.
8. Remedies. Among the remedies you can include are (a) specific performance, which is important if money cannot cure a default, (b) liquidated damages, if you prefer to define the damages to avoid disputes as to proof the proper compensation for a breach, and (c) equitable remedies (other than specific performance), like an injunction.
9. Non-Compete/Non-Solicitation. Simple vendor/supplier agreements generally won't include these terms, but many other contracts will, including licensing agreements, consulting/employment, certain service agreements, or more major transactions (like sale of a business) to name a few. Enforcement, especially as to non-competes, is a key legal issue, and it is highly advisable to have the provisions reviewed by counsel that understands the law in the applicable jurisdiction as it can vary greatly from state-to-state.
10. Other Terms/Conclusion. If there are other terms included or, for that matter, missing from the agreement, then make these part of the punch list of issues to be addressed with the other party. The reality is that the worse response you can receive is "no", and then you can decide how important the provision is from your perspective. A bad contract is NOT better than no contract. In a competitive economy, even larger/established businesses are often willing to negotiate and "the last and final", "take it or leave it" or "as is" response may be just a bargaining tactic.
The Lesson: Read the Contract, Understand Each Provisions and Don't Be Afraid to Negotiate the Terms.
Disclaimer: The discussions in this blog do not constitute legal advise nor create any attorney-client relationship. You are urged to seek the advice of an experienced lawyer who can provide counsel with respect to your corporate/business law matters.
Legal Issues When Buying a Business: Don't Overlook These Provisions in the Purchase Agreement.
To contact us Click HERE
As discussed in prior installments of this series on buying a business, there are a number important legal issues you need to consider before signing the purchase agreement. The first installment discussed the role of the Exclusivity Agreement, the second installment examined the differences between structuring the transaction as stock purchase as opposed to a purchase of assets, the third examined the importance of escrowing a portion of the purchase price to cover any issues that may arise post closing, and the fourth discussed important aspects of due diligence and how to address legal or financial issues in the purchase agreement. This fifth installment examines several key provisions that should be incorporated in the purchase agreement but are otherwise often overlooked.
The Purchase Agreement is a very flexible instrument giving the parties substantial flexibility not only as to the structure the transaction but with respect to the representations, warranties, disclosures and covenants that the parties can negotiate to include (or for that matter exclude) from the Agreement. There are a number of standard provisions relating to such matters as legal ownership of/title to the assets, representations as to the corporate status and authority, disclosures as to litigation, financial and tax related representations, environmental issues and post closing obligations. First, while these provisions may be part of a standard purchase agreement they by no means should be viewed as boilerplate. Even a slight variation in language can alter the meaning and scope of these sections, and thus all representations, warranties and covenants, no matter how standard, need to be reviewed carefully. Second, below are a number of provisions which are often overlooked but you should consider incorporating in the Purchase Agreement.
1. Intellectual Property.
Of course it is standard to include representations regarding the seller's title and ownership of the intellectual property, but make sure the Agreement:
(a) Covers licensed rights as well as often the seller does not own but licenses key IP. In the same vein, confirm the licenses are assignable and if consent of the licensor is required that the Seller obtain the consent as a condition of closing.
(b) Addresses rights to the domain names and company websites and requires transfer of these rights to the buyer as a condition of closing. It is not unusual for the buyer to forgot about the transfer of the domain and then have to coax the seller into compliance after the sale.
(c) IP rights should include not only registered marks or issued patents, but pending applications, unregistered rights, royalties, licenses and, significantly, awards, damages or pending claims and litigation.
(d) Incorporates provisions relating to software, requires the turn over of source code, manuals, passwords, license keys and all other documentation.
2. Litigation
Representations relating to pending or threatened litigation are typical in a Purchase Agreement, but be sure:
(a) There are sufficient disclosures about pending and threatened litigation, including the status of such matters.
(b) Decide how litigation is to be handled post-closing. Will your lawyer take over the matter or will the Seller's lawyer continue to handle it; who will be responsible for the legal fees and costs; include a right to periodic updates as to the status of any legal matters; and set forth any rights as to damages, awards, insurance proceeds and to settle the matter and any indemnification in the event of an unfavorable outcome.
3. Financial/Tax Matters
In addition to the typical representations and warranties concerning financial and tax issues, include:
(a) Financial
(i) Require that the seller update the financial statements on or prior to Closing;
(ii) Include a formula for adjusting the purchase price if there are material changes to the financial statement;
(iii) Although often used, try to avoid using an earn-out (post-closing payment contingent on certain financial milestones) as they are difficult to negotiate, document and manage once the buyer assumes the reins of the business, and as a result they are a major source of post-closing disputes. If an earn-out cannot be avoided, make sure you have counsel who has experience negotiating and drafting earn-outs.
(b) Taxes
(i) The representations and warranties should not only cover federal and state taxes, but sales and any other applicable taxes for all relevant jurisdictions.
(ii) The seller should provide all filings and disclose any past, pending or threatened audits/assessments.
(iii) Require the seller provide post-closing assistance for any filings relating to periods of time the seller controlled the business.
(iv) Include appropriate indemnifications for tax liabilities.
4. Transition
Is there a switch in your house that you have no idea what it does, and since the seller is long gone you have no way of finding out? Well, think how that issue is magnified exponentially if you purchase a business and don't have the seller to assist with the transition. The assistance is important not only as to obvious issues, like computer systems, financial records, and where the keys to the third floor supply closet are located, but making a smooth transition as far as clients/customers, introduction to vendors/suppliers, establishing a good relationship with employees/consultants, ensuring an understanding of business processes and procedures that are essential for operation of the business. Therefore, the Purchase Agreement can require the meaningful assistance of the seller or even include compensation to the seller for post-closing assistance and continued employment with the company for a reasonable period of time.
5. Material Adverse Change
Undoubtedly the Purchase Agreement will include a Material Adverse Change clause essentially providing the buyer with certain rights and remedies (including possibly termination of the transaction) in the event of a material adverse change with respect to the business. The clause is one of those tricky provisions which, if not properly drafted, can result in substantial disputes. The key is to avoid ambiguity by incorporating specific criteria as to when the Material Adverse Change clause is implicated, such as decline in sales, the loss of certain amount of or even specifically named customers, a decrease in EBITDA or termination of a manufacturing or supplier relationship.
6. Employment/Labor Matters
Provisions relating to Employment and Labor matters are standard, but also make sure the representations and warranties include:
(a) Existence of confidentiality, invention assignment and non-competes, and get copies for each employee and consultant.
(b) Confirmation that consultants are truly consultants and not employees (which can give rise to substantial tax liabilities).
(c) Details and disclosures regarding any employee plans (stock, pension, etc.) and vesting status f each employee.
(d) Disclosures with respect to any collective bargaining any other labor matters.
7. Operations in Foreign Countries
Establishing the right of the company to operate in any foreign jurisdictions where it does business should be obvious, but compliance with the Foreign Corrupt Practices Act is far less familiar to most people. The FCPA prohibits various behavior relating to operating in foreign jurisdictions, including paying bribes to obtain contracts, business, etc. Violation of the FCPA carries substantial civil and criminal liability. As a buyer, you might not think much about the FCPA, but if you manufacture in China, for example, you better pay attention and therefore incorporate a representation that no unlawful payments have been made by seller or its agents.
8. Covenants
The Purchase Agreement should contain covenants relating to:
(a) Non-solicitation of employees, customers and clients and non-interference with existing vendor/supplier relationships.
(b) In certain circumstances, a Non-Compete that complies with the narrow limitations imposed by applicable state law.
(c) As discussed in prior posts, clear indemnification and escrow terms to address post-closing liabilities.
(d) Confidentiality.
(e) Obligation of the Seller to notify the buyer upon the occurrence of material events arising at any time prior to closing.
(f) Resignations of officers, directors, responsibility of the seller as to termination of some or all employees/consultants.
9. Termination
There will be grounds for either party to terminate the Agreement prior to closing. The termination provisions should not only provide specifics as to when the right can be invoked by a party, but also the liabilities, if any, resulting from termination and the effect of termination.
10. Survival
Give careful consideration to how long any of the representations, warranties and covenants will survive avter closing. The seller will push for no or a very short period while the buyer will want them to survive until the chance of any liability no longer exists. A compromise will almost always be necessary, and remember not all of the provisions need to survive for the same period of time
The above are by no means an exhaustive list of key provisions in a purchase agreement, and they will certainly vary depending on the nature of the business involved -- for example, if you are buying a gas station the environmental disclosures, reps and warranties will be substantial. What is obvious that you cannot accept a boilerplate purchase agreement and instead the provisions need to be tailored to the particular transaction.
Disclaimer: The discussions in this blog do not constitute legal advice nor create any attorney-client relationship. You are urged to seek the advice of an experienced lawyer who can provide counsel with respect to your corporate/business law matters
The Purchase Agreement is a very flexible instrument giving the parties substantial flexibility not only as to the structure the transaction but with respect to the representations, warranties, disclosures and covenants that the parties can negotiate to include (or for that matter exclude) from the Agreement. There are a number of standard provisions relating to such matters as legal ownership of/title to the assets, representations as to the corporate status and authority, disclosures as to litigation, financial and tax related representations, environmental issues and post closing obligations. First, while these provisions may be part of a standard purchase agreement they by no means should be viewed as boilerplate. Even a slight variation in language can alter the meaning and scope of these sections, and thus all representations, warranties and covenants, no matter how standard, need to be reviewed carefully. Second, below are a number of provisions which are often overlooked but you should consider incorporating in the Purchase Agreement.
1. Intellectual Property.
Of course it is standard to include representations regarding the seller's title and ownership of the intellectual property, but make sure the Agreement:
(a) Covers licensed rights as well as often the seller does not own but licenses key IP. In the same vein, confirm the licenses are assignable and if consent of the licensor is required that the Seller obtain the consent as a condition of closing.
(b) Addresses rights to the domain names and company websites and requires transfer of these rights to the buyer as a condition of closing. It is not unusual for the buyer to forgot about the transfer of the domain and then have to coax the seller into compliance after the sale.
(c) IP rights should include not only registered marks or issued patents, but pending applications, unregistered rights, royalties, licenses and, significantly, awards, damages or pending claims and litigation.
(d) Incorporates provisions relating to software, requires the turn over of source code, manuals, passwords, license keys and all other documentation.
2. Litigation
Representations relating to pending or threatened litigation are typical in a Purchase Agreement, but be sure:
(a) There are sufficient disclosures about pending and threatened litigation, including the status of such matters.
(b) Decide how litigation is to be handled post-closing. Will your lawyer take over the matter or will the Seller's lawyer continue to handle it; who will be responsible for the legal fees and costs; include a right to periodic updates as to the status of any legal matters; and set forth any rights as to damages, awards, insurance proceeds and to settle the matter and any indemnification in the event of an unfavorable outcome.
3. Financial/Tax Matters
In addition to the typical representations and warranties concerning financial and tax issues, include:
(a) Financial
(i) Require that the seller update the financial statements on or prior to Closing;
(ii) Include a formula for adjusting the purchase price if there are material changes to the financial statement;
(iii) Although often used, try to avoid using an earn-out (post-closing payment contingent on certain financial milestones) as they are difficult to negotiate, document and manage once the buyer assumes the reins of the business, and as a result they are a major source of post-closing disputes. If an earn-out cannot be avoided, make sure you have counsel who has experience negotiating and drafting earn-outs.
(b) Taxes
(i) The representations and warranties should not only cover federal and state taxes, but sales and any other applicable taxes for all relevant jurisdictions.
(ii) The seller should provide all filings and disclose any past, pending or threatened audits/assessments.
(iii) Require the seller provide post-closing assistance for any filings relating to periods of time the seller controlled the business.
(iv) Include appropriate indemnifications for tax liabilities.
4. Transition
Is there a switch in your house that you have no idea what it does, and since the seller is long gone you have no way of finding out? Well, think how that issue is magnified exponentially if you purchase a business and don't have the seller to assist with the transition. The assistance is important not only as to obvious issues, like computer systems, financial records, and where the keys to the third floor supply closet are located, but making a smooth transition as far as clients/customers, introduction to vendors/suppliers, establishing a good relationship with employees/consultants, ensuring an understanding of business processes and procedures that are essential for operation of the business. Therefore, the Purchase Agreement can require the meaningful assistance of the seller or even include compensation to the seller for post-closing assistance and continued employment with the company for a reasonable period of time.
5. Material Adverse Change
Undoubtedly the Purchase Agreement will include a Material Adverse Change clause essentially providing the buyer with certain rights and remedies (including possibly termination of the transaction) in the event of a material adverse change with respect to the business. The clause is one of those tricky provisions which, if not properly drafted, can result in substantial disputes. The key is to avoid ambiguity by incorporating specific criteria as to when the Material Adverse Change clause is implicated, such as decline in sales, the loss of certain amount of or even specifically named customers, a decrease in EBITDA or termination of a manufacturing or supplier relationship.
6. Employment/Labor Matters
Provisions relating to Employment and Labor matters are standard, but also make sure the representations and warranties include:
(a) Existence of confidentiality, invention assignment and non-competes, and get copies for each employee and consultant.
(b) Confirmation that consultants are truly consultants and not employees (which can give rise to substantial tax liabilities).
(c) Details and disclosures regarding any employee plans (stock, pension, etc.) and vesting status f each employee.
(d) Disclosures with respect to any collective bargaining any other labor matters.
7. Operations in Foreign Countries
Establishing the right of the company to operate in any foreign jurisdictions where it does business should be obvious, but compliance with the Foreign Corrupt Practices Act is far less familiar to most people. The FCPA prohibits various behavior relating to operating in foreign jurisdictions, including paying bribes to obtain contracts, business, etc. Violation of the FCPA carries substantial civil and criminal liability. As a buyer, you might not think much about the FCPA, but if you manufacture in China, for example, you better pay attention and therefore incorporate a representation that no unlawful payments have been made by seller or its agents.
8. Covenants
The Purchase Agreement should contain covenants relating to:
(a) Non-solicitation of employees, customers and clients and non-interference with existing vendor/supplier relationships.
(b) In certain circumstances, a Non-Compete that complies with the narrow limitations imposed by applicable state law.
(c) As discussed in prior posts, clear indemnification and escrow terms to address post-closing liabilities.
(d) Confidentiality.
(e) Obligation of the Seller to notify the buyer upon the occurrence of material events arising at any time prior to closing.
(f) Resignations of officers, directors, responsibility of the seller as to termination of some or all employees/consultants.
9. Termination
There will be grounds for either party to terminate the Agreement prior to closing. The termination provisions should not only provide specifics as to when the right can be invoked by a party, but also the liabilities, if any, resulting from termination and the effect of termination.
10. Survival
Give careful consideration to how long any of the representations, warranties and covenants will survive avter closing. The seller will push for no or a very short period while the buyer will want them to survive until the chance of any liability no longer exists. A compromise will almost always be necessary, and remember not all of the provisions need to survive for the same period of time
The above are by no means an exhaustive list of key provisions in a purchase agreement, and they will certainly vary depending on the nature of the business involved -- for example, if you are buying a gas station the environmental disclosures, reps and warranties will be substantial. What is obvious that you cannot accept a boilerplate purchase agreement and instead the provisions need to be tailored to the particular transaction.
Disclaimer: The discussions in this blog do not constitute legal advice nor create any attorney-client relationship. You are urged to seek the advice of an experienced lawyer who can provide counsel with respect to your corporate/business law matters
Why You Need a Shareholders Agreement (Part I)
To contact us Click HERE
If you are forming a corporation with a partner, regardless of whether it is with your best friend that you have known since birth or a new business relationship, executing a well-crafted Shareholders Agreement is essential. Too often, partners mistakenly believe that the corporate By Laws answer all the questions and will adequately set the parameters for the relationship between shareholders. While the By-laws address day-to-day operations of the corporation, the Shareholder Agreement is where a number of specific rights and obligations of the shareholders are set forth. Common provisions of a Shareholders Agreement will address such issues as voting rights, restrictions on voluntary and involuntary transfers of stock, buy-out clause, non-competition obligations, death, incapacity or divorce of a shareholder, and limitations on Board of Directors powers. The next several posts will address the importance of the Shareholders Agreement, some of the common provisions, as well as several issues that are often overlooked in drafting the Agreement.
1. Do Not Confuse the Articles, By-laws and Shareholders Agreement.
Entrepreneurs forming a corporation for the first time may find that they are unclear as to the differences between the Certificate of Incorporation (or Articles of Incorporation), By-laws and the Shareholders Agreement:
A. Certificate of Incorporation: This document (which often have a different name outside of New York, such as Articles of Incorporation), is the only document that must be filed in New York to form a corporation. As with many states, New York provides a simple form requiring only limited information to be included in the Certificate (name of the entity, purpose, county where located, number of authorized shares, and name of registered agent). While you may draft your own form, the simple New York form is all that is required to incorporate. There are siutations where you might draft your own Certificate of Incorporation, as where there are different classes stock, and the Certificate of Incorporation will be more complex. However, the basic Certificate of Incorporation is a bare-bones document that does not address any issues relating to corporate governance, authority of the Board of Directors, or the rights and obligations of the shareholders.
B. By-laws of a Corporation. The By-laws serve the purpose of setting forth important terms relating to the governance of the corporation. Thus, the By-laws establish important aspects for day-to-day operation of the corporation:
(i) Board of Directors: the number of members of the Board of Directors, meetings of the Board, voting, removal, vacancies, and powers of the Board of Directors;
(ii) Shareholders: Annual and Special Meetings of Shareholders, including notice, voting, and general procedures;
(iii) Officers: election/appointment and removal procedures and authority of officers;
(iv) Indemnification: indemnification of Directors, officers, employees of the corporation; and
(v) Miscellaneous: Stock, Maintaining Books and Records, Seal of the Corporation, Amendments to the By Laws.
C. The Shareholders Agreement. The Shareholders Agreement is the document among the Shareholders and the Corporation where a number of specific rights and obligations of the shareholders and the corporation are detailed. The Shareholder Agreement is a contract, and can include essentially any terms that do not violate the New York Business Corporation Law (or any other applicable law). Typical provisions can include voting agreements or rights among the shareholders, restrictions on voluntary transfers of stock (i.e., selling stock to a third-party) and involuntary transfers (death, bankruptcy or divorce of a shareholder), a buy-out clause, non-competition obligations, information rights of shareholders, and limitations on authority of the Board of Directors and dispute mechanisms.
2. Why the Shareholder Agreement is Essential.
The Shareholder Agreement is essential as it clarifies the rights and obligations of the Shareholders between each other as well as certain obligations of the corporation to the shareholders that are not otherwise included in the By-laws. Too often entrepreneurs, to their peril, are willing to rely on the relationship with their friend (now business partner) or believe they lack the negotiating position to ask for certain rights as a condition of an investment or becoming a minority partner in a business. A well-drafted Shareholders Agreement not only helps delineate the rights of the business partners, but it will in most cases resolve any disputes before they arise because the issue will have been addressed in the Agreement.
Below are some typical disputes that will be alleviated with a Shareholders Agreement:
3. What are some of the Key Provisions to Include in a Shareholders Agreement?
Important provisions in a Shareholder Agreement will, at a minimum, include:
A. Restrictions on voluntary and involuntary transfers of a shareholder's stock;
(i) Right of First Refusal
(ii) Co-Sale (Tag Along) Rights
B. Resolution mechanism/buy-out clause in case of a deadlock;
C. Voting rights and obligations among shareholders;
D. Limitations on Board of Directors powers; and
E. Several Miscellaneous Rights
(i) Restrictive Covenants
(ii) Drag-Along Obligations in the event of sale of the company
(iii) Information Rights
The next several posts will discuss the above typical clauses of a Shareholders Agreement, including important drafting tips.
Disclaimer: The discussions in this Blog do not constitute legal advice nor create an attorney-client relationship. You are urged to seek the advise of an experienced lawyer who can provide counsel with respect to your corporate/business law matters.
1. Do Not Confuse the Articles, By-laws and Shareholders Agreement.
Entrepreneurs forming a corporation for the first time may find that they are unclear as to the differences between the Certificate of Incorporation (or Articles of Incorporation), By-laws and the Shareholders Agreement:
A. Certificate of Incorporation: This document (which often have a different name outside of New York, such as Articles of Incorporation), is the only document that must be filed in New York to form a corporation. As with many states, New York provides a simple form requiring only limited information to be included in the Certificate (name of the entity, purpose, county where located, number of authorized shares, and name of registered agent). While you may draft your own form, the simple New York form is all that is required to incorporate. There are siutations where you might draft your own Certificate of Incorporation, as where there are different classes stock, and the Certificate of Incorporation will be more complex. However, the basic Certificate of Incorporation is a bare-bones document that does not address any issues relating to corporate governance, authority of the Board of Directors, or the rights and obligations of the shareholders.
B. By-laws of a Corporation. The By-laws serve the purpose of setting forth important terms relating to the governance of the corporation. Thus, the By-laws establish important aspects for day-to-day operation of the corporation:
(i) Board of Directors: the number of members of the Board of Directors, meetings of the Board, voting, removal, vacancies, and powers of the Board of Directors;
(ii) Shareholders: Annual and Special Meetings of Shareholders, including notice, voting, and general procedures;
(iii) Officers: election/appointment and removal procedures and authority of officers;
(iv) Indemnification: indemnification of Directors, officers, employees of the corporation; and
(v) Miscellaneous: Stock, Maintaining Books and Records, Seal of the Corporation, Amendments to the By Laws.
C. The Shareholders Agreement. The Shareholders Agreement is the document among the Shareholders and the Corporation where a number of specific rights and obligations of the shareholders and the corporation are detailed. The Shareholder Agreement is a contract, and can include essentially any terms that do not violate the New York Business Corporation Law (or any other applicable law). Typical provisions can include voting agreements or rights among the shareholders, restrictions on voluntary transfers of stock (i.e., selling stock to a third-party) and involuntary transfers (death, bankruptcy or divorce of a shareholder), a buy-out clause, non-competition obligations, information rights of shareholders, and limitations on authority of the Board of Directors and dispute mechanisms.
2. Why the Shareholder Agreement is Essential.
The Shareholder Agreement is essential as it clarifies the rights and obligations of the Shareholders between each other as well as certain obligations of the corporation to the shareholders that are not otherwise included in the By-laws. Too often entrepreneurs, to their peril, are willing to rely on the relationship with their friend (now business partner) or believe they lack the negotiating position to ask for certain rights as a condition of an investment or becoming a minority partner in a business. A well-drafted Shareholders Agreement not only helps delineate the rights of the business partners, but it will in most cases resolve any disputes before they arise because the issue will have been addressed in the Agreement.
Below are some typical disputes that will be alleviated with a Shareholders Agreement:
- Deadlock in a 50/50 corporation
- The sale of shares by your business partner to his undesirable friend
- The transfer of shares to the free-loading son of your deceased business partner
- The transfer of shares to your business partner's spouse in a divorce
- A decision by the Board to hire an employee at a ridiculously high salary
3. What are some of the Key Provisions to Include in a Shareholders Agreement?
Important provisions in a Shareholder Agreement will, at a minimum, include:
A. Restrictions on voluntary and involuntary transfers of a shareholder's stock;
(i) Right of First Refusal
(ii) Co-Sale (Tag Along) Rights
B. Resolution mechanism/buy-out clause in case of a deadlock;
C. Voting rights and obligations among shareholders;
D. Limitations on Board of Directors powers; and
E. Several Miscellaneous Rights
(i) Restrictive Covenants
(ii) Drag-Along Obligations in the event of sale of the company
(iii) Information Rights
The next several posts will discuss the above typical clauses of a Shareholders Agreement, including important drafting tips.
Disclaimer: The discussions in this Blog do not constitute legal advice nor create an attorney-client relationship. You are urged to seek the advise of an experienced lawyer who can provide counsel with respect to your corporate/business law matters.
More On Limited Liability Companies' Fiduciary Duty
To contact us Click HERE
Now that we have an Indiana Court of Appeals decision describing the fiduciary duty of an LLC to its members, I almost thought to scratch this post. However, Chicago Business Litigation Lawyer Blog's Respected Law Professor's Insights on Corporate Freeze-Out Litigation may still have some benefit to you.
"In Fairness and Good Faith as a Precept in the Law of Corporations and Other Business Organizations, 36 Loy.U.Chi. L.J. 551 (2005), Murdock addresses the fiduciary duty of good faith and fairness that controlling interests of a business owe to minority interests. Noting that this internal duty is a fairly recent legal phenomenon, he surveys caselaw on the subject from around the country that applies to closely held corporations, public corporations and LLCs. Noting that the Uniform Limited Liability Company Act (ULLCA), a model law adopted by several states, doesn't include language that gives members of an LLC fiduciary duties to one another, he praises Illinois for modifying that language to protect members in the updated Limited Liability Company Act."
27 Aralık 2012 Perşembe
Preparing Your Business for 2013 Tax Changes
To contact us Click HERE
There are many open questions about federal income, estate, and payroll taxes for 2013. Will the Bush-era tax cuts be extended for all taxpayers? Will the 2 percent reduction in the Social Security tax on employees and self-employed individuals that applies for this year also be extended? While these questions cannot be answered at the present time, what is certain is that some tax rules are set to change in 2013 and your business can prepare for them now.
Withholding for the additional Medicare tax
There is a new additional Medicare tax of 0.9 percent on workers that takes effect in 2013. It applies only to earned income over a threshold amount:
$250,000 for married persons filing jointly
$200,000 for singles, heads of households, and qualifying widow(er)s
$125,000 for married persons filing separately
The additional Medicare tax is on top of the basic Medicare tax of 1.45 percent on all compensation earned by employees (2.9 percent on all net earnings from self-employment).
Self-employed individuals. The same additional Medicare tax of 0.9 percent applies to net earnings from self-employment (i.e., profits). However, as a self-employed individual, there is no withholding. The tax must be included in estimated tax payments to avoid underpayment penalties. Those who have working spouses can have them request additional income tax withholding from their wages; this withholding can then be applied to the additional Medicare tax when they file their joint returns for the year.
Because of the new tax, the deduction from gross income for self-employment tax will not be exactly one-half of all self-employment tax paid. The deduction is limited to the so-called employer portion, which will be something less than half of the total amount of self-employment tax paid by those with net earnings over their applicable threshold amount.
Employer responsibilities. The law does not require a company to notify employees about the new tax, but it might be a good idea to do this so high earners will not be surprised. Here are other points employers should know:
Adjusting for the new FSA cap
Companies offering medical flexible spending accounts (FSAs) must limit employee salary reduction contributions for 2013 to $2,500. Up until now, the cap on employee contributions had been set by employers, not the tax law, with the cap averaging around $5,000 in most companies. What to do:
There are some nuances in the new rule that may affect your benefit plans:
There are other tax rules set to take effect in 2013 that could raise taxes for individuals. In order for employees to avoid paying estimated taxes, some workers may prefer to have employers withhold more from their paychecks to cover the anticipated tax liability. Employers can furnish employees with Form W-4, Wage Withholding Certificate; employees can ask that additional withholding be made (by reducing withholding allowances or requesting that a specific amount be withheld). New law changes that could impact employee taxes in 2013 include:
Now is a good time for business owners to meet with their tax advisors. Discuss which tax rules need to be addressed now and how to proceed.
Republished by permission, FreeEnterprise.com, in agreement with NY Enterprise Report. Copyright© is owned by the author of this article. FreeEnterprise.com is your home for free market news and ideas. Barbara Weltman is an attorney, author (with such titles as J.K. Lasser’s Small Business Taxes and The Complete Idiot's Guide to Starting a Home-Based Business), and trusted professional advocate for small businesses and entrepreneurs. She is also the publisher of Idea of the Day® and monthly e-newsletter Big Ideas for Small Business® at www.barbaraweltman.com, and host of Build Your Business radio. Follow her on Twitter: @BarbaraWeltman.
Withholding for the additional Medicare tax
There is a new additional Medicare tax of 0.9 percent on workers that takes effect in 2013. It applies only to earned income over a threshold amount:
$250,000 for married persons filing jointly
$200,000 for singles, heads of households, and qualifying widow(er)s
$125,000 for married persons filing separately
The additional Medicare tax is on top of the basic Medicare tax of 1.45 percent on all compensation earned by employees (2.9 percent on all net earnings from self-employment).
Self-employed individuals. The same additional Medicare tax of 0.9 percent applies to net earnings from self-employment (i.e., profits). However, as a self-employed individual, there is no withholding. The tax must be included in estimated tax payments to avoid underpayment penalties. Those who have working spouses can have them request additional income tax withholding from their wages; this withholding can then be applied to the additional Medicare tax when they file their joint returns for the year.
Because of the new tax, the deduction from gross income for self-employment tax will not be exactly one-half of all self-employment tax paid. The deduction is limited to the so-called employer portion, which will be something less than half of the total amount of self-employment tax paid by those with net earnings over their applicable threshold amount.
Employer responsibilities. The law does not require a company to notify employees about the new tax, but it might be a good idea to do this so high earners will not be surprised. Here are other points employers should know:
- There is no employer matching of this additional tax; the tax falls exclusively on employees. However, there may be additional administrative costs for compliance with withholding for the tax—whether you handle payroll in house or outsource this function.
- As in the case of the basic Medicare tax, it applies to all taxable compensation, including bonuses, tips, and taxable fringe benefits.
- Withholding begins in the pay period in which an employee’s earnings first exceed the applicable threshold amount.
- Withholding applies only to the portion of earnings over the threshold amount. For example, say late in December 2013, an unmarried employee who had earned $175,000 receives a year-end bonus of $30,000. In the pay period in which the bonus is paid, withholding must be taken for the additional Medicare tax on $5,000, which is the portion of earnings over the employee’s $200,000 threshold amount.
Adjusting for the new FSA cap
Companies offering medical flexible spending accounts (FSAs) must limit employee salary reduction contributions for 2013 to $2,500. Up until now, the cap on employee contributions had been set by employers, not the tax law, with the cap averaging around $5,000 in most companies. What to do:
- Inform employees about the change in the law. The $2,500 cap will be adjusted for inflation after 2013.
- Amend FSAs to reflect the tax law’s limit on employee contributions. While the deadline for making amendments is the end of 2014, plans must be operating under the new rules in 2013.
There are some nuances in the new rule that may affect your benefit plans:
- The cap applies only to medical FSAs. It does not apply to dependent care FSAs or other employee contribution plans, such as health savings accounts.
- If a married couple work for the same employer, each can contribute up to $2,500 to a medical FSA.
There are other tax rules set to take effect in 2013 that could raise taxes for individuals. In order for employees to avoid paying estimated taxes, some workers may prefer to have employers withhold more from their paychecks to cover the anticipated tax liability. Employers can furnish employees with Form W-4, Wage Withholding Certificate; employees can ask that additional withholding be made (by reducing withholding allowances or requesting that a specific amount be withheld). New law changes that could impact employee taxes in 2013 include:
- Additional Medicare tax on net investment income of 3.8 percent.
- Higher threshold for itemizing medical deductions.
Now is a good time for business owners to meet with their tax advisors. Discuss which tax rules need to be addressed now and how to proceed.
Republished by permission, FreeEnterprise.com, in agreement with NY Enterprise Report. Copyright© is owned by the author of this article. FreeEnterprise.com is your home for free market news and ideas. Barbara Weltman is an attorney, author (with such titles as J.K. Lasser’s Small Business Taxes and The Complete Idiot's Guide to Starting a Home-Based Business), and trusted professional advocate for small businesses and entrepreneurs. She is also the publisher of Idea of the Day® and monthly e-newsletter Big Ideas for Small Business® at www.barbaraweltman.com, and host of Build Your Business radio. Follow her on Twitter: @BarbaraWeltman.Three Tips for 2013 Bookkeeping
To contact us Click HERE
By BizFilings Business Owner’s Toolkit
Marketing plans and strategies, sales tactics, office policies—now is the time of year to revise nearly everything for the New Year. Except for bookkeeping, the oft-neglected business necessity that so many other functions ultimately depend upon.
The fact is relatively few small business owners have such sound bookkeeping systems that they shouldn’t revisit them. Improving bookkeeping methods is important not just for tax implications, but as a way to better record finances that, in turn, can be used for better reports.
Making your 2013 bookkeeping a planning priority won’t take too much time or effort. While these tips only scratch the surface—and assume, for the most part, that your bookkeeping is in relatively good order—they can help your business remain compliant and have more insight into your financial health.
1. Account for business transactions made on personal accounts. Personally purchasing a product or service intended for your business is still a business deduction. The problem is many small business owners never enter them into their bookkeeping system because the receipts are long gone by the time they record expenses. Start hanging onto all business purchase receipts and promptly recording these transactions into your books.
2. Take advantage of entertainment and dining exemptions. Despite Uncle Sam acknowledging that many business deals are conducted over dinner and a show, far too many entrepreneurs never claim legitimate dining and entertainment expenses. Or, they’ll claim every morsel they’ve ever ingested. Don’t be afraid to take a deduction that is rightfully yours, but be sure to create and maintain a dining and expenses log that includes the date, time, amount and purpose for the meals and/or entertainment. Writing a brief description about the business associates present and the type of business discussed will add even more credibility to the legitimacy of these claims.
3. Start your new business on the right foot. If 2013 is the year you plan to make the leap from employee to entrepreneur, bone up on accounting and bookkeeping basics. Once you have a firm grasp of the fundamentals, make a couple concrete decisions, including:
Every industry is different. And you may already address all of these bookkeeping concerns. Still, your business will benefit if you research specific industry bookkeeping techniques in order to strengthen your 2013 recordkeeping.
About Business Owner’s Toolkit
With an emphasis on problem-solving dating back to 1995, Business Owner’s Toolkit™ (www.toolkit.com) offers more than 5,000 pages of free cost-cutting tips, step-by-step checklists, real-life case studies, startup advice, and business templates to small business owners and entrepreneurs. The site also offers a monthly newsletter, up-to-date news topics, and Ask Alice!, a column that closely follows industry trends and provides trusted advice to inquiring site visitors.
Marketing plans and strategies, sales tactics, office policies—now is the time of year to revise nearly everything for the New Year. Except for bookkeeping, the oft-neglected business necessity that so many other functions ultimately depend upon.
The fact is relatively few small business owners have such sound bookkeeping systems that they shouldn’t revisit them. Improving bookkeeping methods is important not just for tax implications, but as a way to better record finances that, in turn, can be used for better reports.
Making your 2013 bookkeeping a planning priority won’t take too much time or effort. While these tips only scratch the surface—and assume, for the most part, that your bookkeeping is in relatively good order—they can help your business remain compliant and have more insight into your financial health.
1. Account for business transactions made on personal accounts. Personally purchasing a product or service intended for your business is still a business deduction. The problem is many small business owners never enter them into their bookkeeping system because the receipts are long gone by the time they record expenses. Start hanging onto all business purchase receipts and promptly recording these transactions into your books.
2. Take advantage of entertainment and dining exemptions. Despite Uncle Sam acknowledging that many business deals are conducted over dinner and a show, far too many entrepreneurs never claim legitimate dining and entertainment expenses. Or, they’ll claim every morsel they’ve ever ingested. Don’t be afraid to take a deduction that is rightfully yours, but be sure to create and maintain a dining and expenses log that includes the date, time, amount and purpose for the meals and/or entertainment. Writing a brief description about the business associates present and the type of business discussed will add even more credibility to the legitimacy of these claims.
3. Start your new business on the right foot. If 2013 is the year you plan to make the leap from employee to entrepreneur, bone up on accounting and bookkeeping basics. Once you have a firm grasp of the fundamentals, make a couple concrete decisions, including:
- Don’t put off opening a business checking account, or a business credit card or line of credit. You generally want to separate business and personal funds as much as possible for easier bookkeeping.
- Familiarize yourself with compliance and taxing agencies’ deadlines. If you have an inkling of expanding or changing your business, research filing and compliance deadlines now—they might have a large influence on your decision. For example, when Illinois-based businesses hire employees, they have a very limited window to report new hires to the Illinois Department of Employment Security. You’ll soon discover that government agencies don’t consider “I didn’t know the deadline” an excuse. They’ll answer back with, “Here are your penalties and interest.”
Every industry is different. And you may already address all of these bookkeeping concerns. Still, your business will benefit if you research specific industry bookkeeping techniques in order to strengthen your 2013 recordkeeping.
About Business Owner’s Toolkit With an emphasis on problem-solving dating back to 1995, Business Owner’s Toolkit™ (www.toolkit.com) offers more than 5,000 pages of free cost-cutting tips, step-by-step checklists, real-life case studies, startup advice, and business templates to small business owners and entrepreneurs. The site also offers a monthly newsletter, up-to-date news topics, and Ask Alice!, a column that closely follows industry trends and provides trusted advice to inquiring site visitors.
Tapping Into the Great Untapped Online Marketing Tool: Review Websites
To contact us Click HERE
By BizFilings BusinessOwner’s Toolkit
It’s time to stop cowering in fear of negative reviews ofyour business that may lurk in the crevices of cyberspace. With consumersplacing such emphasis on reading online reviews before making purchase decisions, entrepreneurs must address review sites head-on.They’re not going anywhere any time soon.
Remember, this is agradual process. But over time, you should notice an increase in inquiries andsales as your online review profiles become something to be proud of.
About Business Owner’s ToolkitWith an emphasis on problem-solving dating back to 1995, Business Owner’s Toolkit™ (www.toolkit.com) offers more than 5,000 pages of free cost-cutting tips, step-by-step checklists, real-life case studies, startup advice, and business templates to small business owners and entrepreneurs. The site also offers a monthly newsletter, up-to-date news topics, and Ask Alice!, a column that closely follows industry trends and provides trusted advice to inquiring site visitors.
By BizFilings BusinessOwner’s Toolkit
It’s time to stop cowering in fear of negative reviews ofyour business that may lurk in the crevices of cyberspace. With consumersplacing such emphasis on reading online reviews before making purchase decisions, entrepreneurs must address review sites head-on.They’re not going anywhere any time soon.
- Yelp
- Angie's List
- Google Maps
- Insider Pages
- Viewpoints
- CNet Reviews
- Amazon.com/Third-Party Reseller Sites
Remember, this is agradual process. But over time, you should notice an increase in inquiries andsales as your online review profiles become something to be proud of.
About Business Owner’s ToolkitWith an emphasis on problem-solving dating back to 1995, Business Owner’s Toolkit™ (www.toolkit.com) offers more than 5,000 pages of free cost-cutting tips, step-by-step checklists, real-life case studies, startup advice, and business templates to small business owners and entrepreneurs. The site also offers a monthly newsletter, up-to-date news topics, and Ask Alice!, a column that closely follows industry trends and provides trusted advice to inquiring site visitors.Managing Millennials: A Crash Course
To contact us Click HERE
If you are struggling to make the most out of your relationships with Millennial employees, here is a quick guide to turning those born between 1980 and 1992 into some of your biggest fans and assets.
Communicating: Veterans like face-to-face meetings, boomers like phone calls, Generation X prefers email, and Millennials do most of their communicating via cell phone, text messages, and social media. Millenials’ interpersonal skills and presentation skills often need work. But be open to letting them develop relationships through the channels they’re most comfortable with. Their informality can often lead to more frequent contact and faster relationship building.
Recruiting: When you set out to hire younger workers, consider your employer brand. What does your company stand for? What are your values? Young people want to work with those they like and companies they believe in. Also understand that what they learn about your company online—from LinkedIn, your website, or customer reviews on Yelp—will shape their opinions and interests.
Inspiring: Don’t assume that the job itself, let alone a paycheck, is enough to keep Millenials working at their full potential. You have to motivate and inspire them. Showing concern for their happiness and well-being will go a long way.
Training: Turnover rates are higher among younger workers, so consider breaking up training into segments delivered over time. Link training with increased responsibilities and compensation or benefits so that you both see ROI. Also integrate as much experiential learning as possible, such as going to meetings or conferences together and talking about what works and what needs to be worked on.
Rewarding: Money is important to Millennials, but it is not what drives them. Before you start writing checks, find out what motivates them. Maybe it’s a 401(k), a gym membership, flex time, or the opportunity for travel and advancement.
Mentoring: This generation has been coached more than any other. They require attention and frequent communications. Focus instructions on what you need done and suggest how, but give them the freedom to try new ways. Review and judge the results more than the methods.
Parenting: Millennials are extremely close with their parents. It is a fuzzy line these days as to what is the appropriate level of parental involvement in interviews, discipline, contract negotiations, etc. It’s up to you to set boundaries, but making helicopter parents your allies can pay off as well.
Retaining: Don’t expect Millennials to be lifers. They typically change jobs every one to three years. But there are exceptions. Show them possible career paths, milestones to different levels in your company, and how staying with you will build their careers. Give them big goals to achieve, then big rewards if they deliver.
Presented by FreeEnterprise.com - your home for free market news and ideas. The site offers more than headlines - it’s a dynamic conversation about American free enterprise.
Communicating: Veterans like face-to-face meetings, boomers like phone calls, Generation X prefers email, and Millennials do most of their communicating via cell phone, text messages, and social media. Millenials’ interpersonal skills and presentation skills often need work. But be open to letting them develop relationships through the channels they’re most comfortable with. Their informality can often lead to more frequent contact and faster relationship building.
Recruiting: When you set out to hire younger workers, consider your employer brand. What does your company stand for? What are your values? Young people want to work with those they like and companies they believe in. Also understand that what they learn about your company online—from LinkedIn, your website, or customer reviews on Yelp—will shape their opinions and interests.
Inspiring: Don’t assume that the job itself, let alone a paycheck, is enough to keep Millenials working at their full potential. You have to motivate and inspire them. Showing concern for their happiness and well-being will go a long way.
Training: Turnover rates are higher among younger workers, so consider breaking up training into segments delivered over time. Link training with increased responsibilities and compensation or benefits so that you both see ROI. Also integrate as much experiential learning as possible, such as going to meetings or conferences together and talking about what works and what needs to be worked on.
Rewarding: Money is important to Millennials, but it is not what drives them. Before you start writing checks, find out what motivates them. Maybe it’s a 401(k), a gym membership, flex time, or the opportunity for travel and advancement.
Mentoring: This generation has been coached more than any other. They require attention and frequent communications. Focus instructions on what you need done and suggest how, but give them the freedom to try new ways. Review and judge the results more than the methods.
Parenting: Millennials are extremely close with their parents. It is a fuzzy line these days as to what is the appropriate level of parental involvement in interviews, discipline, contract negotiations, etc. It’s up to you to set boundaries, but making helicopter parents your allies can pay off as well.
Retaining: Don’t expect Millennials to be lifers. They typically change jobs every one to three years. But there are exceptions. Show them possible career paths, milestones to different levels in your company, and how staying with you will build their careers. Give them big goals to achieve, then big rewards if they deliver.
Presented by FreeEnterprise.com - your home for free market news and ideas. The site offers more than headlines - it’s a dynamic conversation about American free enterprise. Effective online marketing techniques by business type.
To contact us Click HERE
Online marketing is a critical component of making your business successful in this day and age where 97% of internet-connected consumers go online to research services and products. But with so many ways to market yourself online, you may be suffering from analysis paralysis... so to get you started, here is the top action item I recommend depending on your type of business.
If you’re a local business and you see your customers face-to-face, either when they walk into your location, or because you go and see them at theirs, the #1 thing to do is take control over your listing in online directories. That means claiming your Local listing with all the big search engines like Google, Yahoo and Bing. Once you’ve claimed your listing, here are the top things you should do:
If you’re a service business, reviews will play a significant role in the decision-making process for consumers. Make sure you know where your business is getting reviewed and monitor these sites regularly so you can respond when there is a new review.
If you are a pure-play online business, building a great website with lots of useful content should be your top priority so you can get a high ranking in the search engines. There are many straightforward best practices that make your site easier to index by the search engines, so make sure you’re doing at least the following:
Frederick (“Fred”) Vallaeys joined Google in 2002 to help AdWords grow into a leading online marketing platform and he served as the AdWords Evangelist until 2012. Now he runs his own marketing business, Top Tier, to make online marketing more accessible to small businesses through education, tools and services. He speaks at numerous events, including the annual ASBDC conference, helping companies get their business online and grow through online marketing and technology. Read Frederick’s online marketing blog, follow him on Twitter, Facebook or Google+.
Frederick on Google+
If you’re a local business and you see your customers face-to-face, either when they walk into your location, or because you go and see them at theirs, the #1 thing to do is take control over your listing in online directories. That means claiming your Local listing with all the big search engines like Google, Yahoo and Bing. Once you’ve claimed your listing, here are the top things you should do:
If you’re a service business, reviews will play a significant role in the decision-making process for consumers. Make sure you know where your business is getting reviewed and monitor these sites regularly so you can respond when there is a new review.
If you are a pure-play online business, building a great website with lots of useful content should be your top priority so you can get a high ranking in the search engines. There are many straightforward best practices that make your site easier to index by the search engines, so make sure you’re doing at least the following:
Frederick (“Fred”) Vallaeys joined Google in 2002 to help AdWords grow into a leading online marketing platform and he served as the AdWords Evangelist until 2012. Now he runs his own marketing business, Top Tier, to make online marketing more accessible to small businesses through education, tools and services. He speaks at numerous events, including the annual ASBDC conference, helping companies get their business online and grow through online marketing and technology. Read Frederick’s online marketing blog, follow him on Twitter, Facebook or Google+.Frederick on Google+
20 Aralık 2012 Perşembe
Could Your Company Be More Pinteresting?
To contact us Click HERE
“I know I should be pinning, but I have no idea why and what!” the owner of a service business recently said to me. Many small businesses feel compelled to catch the Pinterest wave, but are struggling with what to do with this relative newcomer on the social media scene.
Pinterest, an online bulletin board comprised of shareable images and blurbs, now boasts close to 18 million users. It is the fastest-growing social media content sharing service in history, surpassing the fan-building speed of LinkedIn, YouTube, and Google+ combined.
The majority of early Pinterest adopters were female (68 percent). It found its first target market among brides, Midwestern moms, craft aficionados, and foodies. Like many social media sites, it is also being adopted by big brands and media companies like Whole Foods, Toyota, and Real Simple to engage its consumer communities through promotions, contests, and shared content.
Why should you care about a bunch of women sharing recipes and fashion online? According to e-commerce platform Shopify, those referred to Shopify stores from Pinterest are 10 percent more likely to make a purchase than those who arrive from other social sites. The average purchase price on Shopify’s online stores of items shared on Pinterest ($80) is double the average order from a Facebook referral ($40).
Even if you don’t have a tangible product to sell, Pinterest can be a tremendous awareness-builder. If your content is interesting, users will re-pin it or simply like it, sharing your brand name with others in the Pinterest community. As with other social media, users can follow other people, ensuring your brand gets repeat exposure.
So, how do service businesses and business-to-business marketers take advantage of Pinterest’s wide reach and unique appeal? Tax filing services, insurance agents, and divorce mediators do not have the visual appeal of a pair of hoop earrings or a recipe for low-fat chocolate cheesecake. However, every business has a visual side. In fact, if you search “accounting” in Pinterest, you’ll actually find some fascinating and whimsical visual content!
Here are five tips for applying the best practices of Pinterest to your business-to-business and prospect engagement efforts.
1. Brand Your Boards. Think about your Pinterest boards as your online corporate headquarters or brand museum. If you were decorating the walls of your office space, how would you select items to display? Photos of the pioneers and innovators of your industry, famous inspirational quotes, and visual displays of data (known as infographics) make for interesting content, as do videos. While you can create original content, you don’t need to do so in order to be a pro pinner; you can also share interesting tidbits you find online. Add your own (positive) comments to each pin, so your viewers get a sense of your brand voice.
2. Mix It Up. Content should be constantly changing and building. Add new pins to your boards at least once a week. Adding a Pin It button, available from Pinterest’s website, to your desktop toolbar will enable you to easily share images and facts you find while perusing websites. Change your cover photos and rearrange your board placement to keep your content fresh.
3. Know the Language and the Etiquette. Read the Pinterest rules carefully. Make sure you credit any website you use as a source of a pin. Do not pin product ads or promotions, but sharing a URL to an informative newsletter or photo of your office is probably within the bounds of tasteful self-promotion. Put yourself in the viewer’s shoes, and ask yourself, “What is the benefit of this post to the viewer?” If it’s not educational, inspirational, or motivational, think twice.
4. Build a Community. Use the search function to find relevant content on other boards and like and follow the people or organizations where that content originated. Google the pinners you respect and consider connecting with them on LinkedIn or Facebook. Be sure to let your current customers and prospects know they can find you on Pinterest. Add it to your email signature, e-newsletter, Facebook, LinkedIn, and your company’s website. You can even link Pinterest to Facebook and Twitter, so your pins appear as new content to your current friend and follower base. Pinterest can be an interesting and easy way to build team spirit within your organization, too. Rotate pinning duties among your staff or have a “pin party” over coffee to brainstorm and search for content ideas. As with any creative exercise, your team will feel more connected to your business and the brand.
5. Track and Measure. Pinterest for business-to-business marketers is all about brand awareness and community-building. Do not expect a prospect to pick up the phone and offer you a six-figure retainer just because he likes your pins. However, like blogs, public speaking, public relations, and other forms of social media, Pinterest can help establish you and your business as an accessible, innovative, knowledgeable, and connected leader in your field. Review your boards every week and you’ll be able to track followers, re-pins, and likes. They are all measures of social media engagement. Look beyond the numbers, too. Pay attention to which content is being re-pinned and liked the most, and create more pins for similar categories.
Pinterest can be used for any type of business, however as with all social media, you must have the right type of industry, passion level, target market, creativity, technical skills, and resources to support your effort. If you believe Pinterest is right for your business, but you just don’t have time for one more social media site, consider outsourcing.
Pinterest, like PR, takes time and focus to deliver results. Be patient, be progressive, and be interesting, and you could ultimately prosper. Remember, it’s all part of an integrated marketing strategy to build your brand image and keep you top of mind with prospects and clients.
Republished by permission, FreeEnterprise.com, in agreement with NY Enterprise Report. Copyright© is owned by the author of this article. FreeEnterprise.com is your home for free market news and ideas. Nancy A. Shenker is the CEO/founder of theONswitch, and is the co-author of Don’t Hook Up With the Dude in the Next Cube: 200+ Career Secrets for New Grads. She can be reached at nancys@theonswitch.com.
Pinterest, an online bulletin board comprised of shareable images and blurbs, now boasts close to 18 million users. It is the fastest-growing social media content sharing service in history, surpassing the fan-building speed of LinkedIn, YouTube, and Google+ combined.
The majority of early Pinterest adopters were female (68 percent). It found its first target market among brides, Midwestern moms, craft aficionados, and foodies. Like many social media sites, it is also being adopted by big brands and media companies like Whole Foods, Toyota, and Real Simple to engage its consumer communities through promotions, contests, and shared content.
Why should you care about a bunch of women sharing recipes and fashion online? According to e-commerce platform Shopify, those referred to Shopify stores from Pinterest are 10 percent more likely to make a purchase than those who arrive from other social sites. The average purchase price on Shopify’s online stores of items shared on Pinterest ($80) is double the average order from a Facebook referral ($40).
Even if you don’t have a tangible product to sell, Pinterest can be a tremendous awareness-builder. If your content is interesting, users will re-pin it or simply like it, sharing your brand name with others in the Pinterest community. As with other social media, users can follow other people, ensuring your brand gets repeat exposure.
So, how do service businesses and business-to-business marketers take advantage of Pinterest’s wide reach and unique appeal? Tax filing services, insurance agents, and divorce mediators do not have the visual appeal of a pair of hoop earrings or a recipe for low-fat chocolate cheesecake. However, every business has a visual side. In fact, if you search “accounting” in Pinterest, you’ll actually find some fascinating and whimsical visual content!
Here are five tips for applying the best practices of Pinterest to your business-to-business and prospect engagement efforts.
1. Brand Your Boards. Think about your Pinterest boards as your online corporate headquarters or brand museum. If you were decorating the walls of your office space, how would you select items to display? Photos of the pioneers and innovators of your industry, famous inspirational quotes, and visual displays of data (known as infographics) make for interesting content, as do videos. While you can create original content, you don’t need to do so in order to be a pro pinner; you can also share interesting tidbits you find online. Add your own (positive) comments to each pin, so your viewers get a sense of your brand voice.
2. Mix It Up. Content should be constantly changing and building. Add new pins to your boards at least once a week. Adding a Pin It button, available from Pinterest’s website, to your desktop toolbar will enable you to easily share images and facts you find while perusing websites. Change your cover photos and rearrange your board placement to keep your content fresh.
3. Know the Language and the Etiquette. Read the Pinterest rules carefully. Make sure you credit any website you use as a source of a pin. Do not pin product ads or promotions, but sharing a URL to an informative newsletter or photo of your office is probably within the bounds of tasteful self-promotion. Put yourself in the viewer’s shoes, and ask yourself, “What is the benefit of this post to the viewer?” If it’s not educational, inspirational, or motivational, think twice.
4. Build a Community. Use the search function to find relevant content on other boards and like and follow the people or organizations where that content originated. Google the pinners you respect and consider connecting with them on LinkedIn or Facebook. Be sure to let your current customers and prospects know they can find you on Pinterest. Add it to your email signature, e-newsletter, Facebook, LinkedIn, and your company’s website. You can even link Pinterest to Facebook and Twitter, so your pins appear as new content to your current friend and follower base. Pinterest can be an interesting and easy way to build team spirit within your organization, too. Rotate pinning duties among your staff or have a “pin party” over coffee to brainstorm and search for content ideas. As with any creative exercise, your team will feel more connected to your business and the brand.
5. Track and Measure. Pinterest for business-to-business marketers is all about brand awareness and community-building. Do not expect a prospect to pick up the phone and offer you a six-figure retainer just because he likes your pins. However, like blogs, public speaking, public relations, and other forms of social media, Pinterest can help establish you and your business as an accessible, innovative, knowledgeable, and connected leader in your field. Review your boards every week and you’ll be able to track followers, re-pins, and likes. They are all measures of social media engagement. Look beyond the numbers, too. Pay attention to which content is being re-pinned and liked the most, and create more pins for similar categories.
Pinterest can be used for any type of business, however as with all social media, you must have the right type of industry, passion level, target market, creativity, technical skills, and resources to support your effort. If you believe Pinterest is right for your business, but you just don’t have time for one more social media site, consider outsourcing.
Pinterest, like PR, takes time and focus to deliver results. Be patient, be progressive, and be interesting, and you could ultimately prosper. Remember, it’s all part of an integrated marketing strategy to build your brand image and keep you top of mind with prospects and clients.
Republished by permission, FreeEnterprise.com, in agreement with NY Enterprise Report. Copyright© is owned by the author of this article. FreeEnterprise.com is your home for free market news and ideas. Nancy A. Shenker is the CEO/founder of theONswitch, and is the co-author of Don’t Hook Up With the Dude in the Next Cube: 200+ Career Secrets for New Grads. She can be reached at nancys@theonswitch.com.3 ways to use email and social media together at the holidays…and year round
To contact us Click HERE
There's a buzz in the air: the holidays are here. Undoubtedly, businesses are descending upon your inbox offering 20% off, then free shipping, then another generic offer that will be indistinguishable from all the rest. How does a business or organization separate itself from the herd at such a busy time of the year? And what lessons can you learn now that can be carried into 2012?
Integrate your communications channels -- particularly email and social media -- to reach customers, clients, and supporters. That can make the difference between a business or organization whose messages blend into the others, and one where its customers, clients, and supporters actively look forward to receiving and interacting with them.
Here are three ways you can effectively combine the power of email and social media:
1. Support your email program with social media. The temptation always exists to increase your email frequency at the holidays. Many people will do that, doubling up emails and clogging up inboxes. Social media allows you to stay top-of-mind with customers, clients, and supporters without giving them something else to read in their inbox. The good news is you can increase your social media posting frequency without becoming a nuisance.
2. Promote your emails on social media. If you want your emails to be seen, give your subscribers a heads up on social media that they should look out for a message from you. Post a message on Facebook and/or on Twitter, or even better, tease the content that's included in your newsletter.
3. Get your subscribers to share. Everyone likes a discount, but on social media, people like helpful or fun content they can pass along to their friends even more. When you give that to your subscribers, then your messages will go farther than your subscribers' inboxes.
What content gets passed along? Tips for using your products or surviving the holiday season. Compelling stories about the success your organization has found. A fun video that shows off your business or organization's silly side. Anything that doesn't sound like a promotion and that provides benefit to your readers. Resist the temptation to sell, and your subscribers, fans and followers will share your content and keep you in mind when they (themselves) are ready to buy or donate.
Combine email and social media marketing to keep your customers, clients, and supporters' attention and you'll reap the rewards now and all year long.
Gina Watkins is a leading expert on e-marketing for small business – and has a real passion for helping businesses to succeed. Her ongoing series of dynamic lectures are filled with real-world examples, humor and results-driven wisdom garnered from more than two decades of sales, business development and marketing experience. In addition to owning her own business, she is an award-winning direct marketer, has been featured on WUSA Channel 9's Mind Over Money show, Dr. Gayle Carson’s Women In Business radio show, Morgan State’s Briefcase Radio program, and in numerous other media. In her role as Constant Contact Regional Development Director, she’s presented to more than ten thousand seminar attendees about the keys to success with easy, affordable, highly effective technology tools that grow trusted business relationships.
Integrate your communications channels -- particularly email and social media -- to reach customers, clients, and supporters. That can make the difference between a business or organization whose messages blend into the others, and one where its customers, clients, and supporters actively look forward to receiving and interacting with them.
Here are three ways you can effectively combine the power of email and social media:
1. Support your email program with social media. The temptation always exists to increase your email frequency at the holidays. Many people will do that, doubling up emails and clogging up inboxes. Social media allows you to stay top-of-mind with customers, clients, and supporters without giving them something else to read in their inbox. The good news is you can increase your social media posting frequency without becoming a nuisance.
2. Promote your emails on social media. If you want your emails to be seen, give your subscribers a heads up on social media that they should look out for a message from you. Post a message on Facebook and/or on Twitter, or even better, tease the content that's included in your newsletter.
3. Get your subscribers to share. Everyone likes a discount, but on social media, people like helpful or fun content they can pass along to their friends even more. When you give that to your subscribers, then your messages will go farther than your subscribers' inboxes.
What content gets passed along? Tips for using your products or surviving the holiday season. Compelling stories about the success your organization has found. A fun video that shows off your business or organization's silly side. Anything that doesn't sound like a promotion and that provides benefit to your readers. Resist the temptation to sell, and your subscribers, fans and followers will share your content and keep you in mind when they (themselves) are ready to buy or donate.
Combine email and social media marketing to keep your customers, clients, and supporters' attention and you'll reap the rewards now and all year long.
Gina Watkins is a leading expert on e-marketing for small business – and has a real passion for helping businesses to succeed. Her ongoing series of dynamic lectures are filled with real-world examples, humor and results-driven wisdom garnered from more than two decades of sales, business development and marketing experience. In addition to owning her own business, she is an award-winning direct marketer, has been featured on WUSA Channel 9's Mind Over Money show, Dr. Gayle Carson’s Women In Business radio show, Morgan State’s Briefcase Radio program, and in numerous other media. In her role as Constant Contact Regional Development Director, she’s presented to more than ten thousand seminar attendees about the keys to success with easy, affordable, highly effective technology tools that grow trusted business relationships.
Down Economy? Start a Business Targeting Essential Needs
To contact us Click HERE
It’sno secret that the economy continues to struggle to recover from the GreatRecession of the last several years. Many feel it’s a dangerous time to start a business of their own due tothe economic climate, but if you look for businesses and industries that catermore to “essential needs,” your chance of business success shouldincrease.
Hereare four targets to keep in mind as you explore business ownership.
BabyBoomers Are Living Longer: The largest generation in our country’s history isretiring, but they’re living longer and looking for products and services thatthey can use. As these boomers age, manyare choosing to stay in their homes as long as possible rather than move to anassisted-living facility or in with their adult children. Businesses that cater to home healthcareservices or that help seniors live safely in their homes through home modificationsshould do well. Commonmodifications include automatic door openers, ramps, safety bars, bathroomtransfer systems, stair lifts, and specialized tubs/showers.
It’sGot to Be the Hair: Your hair doesn’t know it’s a down economy -- it’s going tokeep growing regardless. And unless youwant locks of hair running down your back, you’ll continue to get your haircut. People are looking for affordableoptions for their hair care and are turning to less expensive hair salonseverywhere. They’re now passing on themore lavish $70 and $80 haircuts for something that fits their budget a littlebetter.
CheckUnder the Hood: Did you know the average age of the car on the road today isabout 10 years old? That tells us peopleare keeping their cars longer and are performing the necessary repairs andmaintenance to their cars in order to keep them running. So it stands to reasonthat the automotive repair business will continue to thrive, perhaps even moreas the economy continues to struggle.
MotherNature Wreaks Havoc: As Mother Naturehas shown over the last several weeks with the devastating storms hitting thenortheast, she’s still in charge. Justlike your hair doesn’t know that the economy is down, Mother Nature doesn’teither. Fires, hurricanes, floods andtornados, among many other natural disasters, will happen at any time and inany place. Businesses that help with damage restoration (rebuilding, clean-up,etc.) will always be in demand. The otheradvantage of these types of businesses is that most times the damagerestoration will be paid through an insurance company. So it’s not something that business owners orhomeowners will necessarily have to fund out of their pockets.
Thereare many businesses that do well, but look for key components in a businessthat would do well in all types of economic conditions. Those insights may make the difference inyour business failure and success.
FranNet is the nation’s most well-respected leader for matching individuals with franchise opportunities. FranNet has more 90 consultants across the U.S. who use a proprietary profiling and consultative process to determine a business model unique to each client’s goals, skill sets and interests, and has matched thousands of entrepreneurs to rewarding small business opportunities. Recognized by Inc. Magazine as one of the fastest growing private companies in America for the last three years, this year marks FranNet’s 25th anniversary. For more information, visit www.frannet.com.
It’sno secret that the economy continues to struggle to recover from the GreatRecession of the last several years. Many feel it’s a dangerous time to start a business of their own due tothe economic climate, but if you look for businesses and industries that catermore to “essential needs,” your chance of business success shouldincrease.
Hereare four targets to keep in mind as you explore business ownership.
BabyBoomers Are Living Longer: The largest generation in our country’s history isretiring, but they’re living longer and looking for products and services thatthey can use. As these boomers age, manyare choosing to stay in their homes as long as possible rather than move to anassisted-living facility or in with their adult children. Businesses that cater to home healthcareservices or that help seniors live safely in their homes through home modificationsshould do well. Commonmodifications include automatic door openers, ramps, safety bars, bathroomtransfer systems, stair lifts, and specialized tubs/showers.
It’sGot to Be the Hair: Your hair doesn’t know it’s a down economy -- it’s going tokeep growing regardless. And unless youwant locks of hair running down your back, you’ll continue to get your haircut. People are looking for affordableoptions for their hair care and are turning to less expensive hair salonseverywhere. They’re now passing on themore lavish $70 and $80 haircuts for something that fits their budget a littlebetter.
CheckUnder the Hood: Did you know the average age of the car on the road today isabout 10 years old? That tells us peopleare keeping their cars longer and are performing the necessary repairs andmaintenance to their cars in order to keep them running. So it stands to reasonthat the automotive repair business will continue to thrive, perhaps even moreas the economy continues to struggle.
MotherNature Wreaks Havoc: As Mother Naturehas shown over the last several weeks with the devastating storms hitting thenortheast, she’s still in charge. Justlike your hair doesn’t know that the economy is down, Mother Nature doesn’teither. Fires, hurricanes, floods andtornados, among many other natural disasters, will happen at any time and inany place. Businesses that help with damage restoration (rebuilding, clean-up,etc.) will always be in demand. The otheradvantage of these types of businesses is that most times the damagerestoration will be paid through an insurance company. So it’s not something that business owners orhomeowners will necessarily have to fund out of their pockets.
Thereare many businesses that do well, but look for key components in a businessthat would do well in all types of economic conditions. Those insights may make the difference inyour business failure and success.
FranNet is the nation’s most well-respected leader for matching individuals with franchise opportunities. FranNet has more 90 consultants across the U.S. who use a proprietary profiling and consultative process to determine a business model unique to each client’s goals, skill sets and interests, and has matched thousands of entrepreneurs to rewarding small business opportunities. Recognized by Inc. Magazine as one of the fastest growing private companies in America for the last three years, this year marks FranNet’s 25th anniversary. For more information, visit www.frannet.com.
Leveraging social media for your startup or small business
To contact us Click HERE
The powerful online tools now available for promoting your enterprise and creating awareness of your brand have become indispensable.
Your website is the world’s window to your business. If you operate a local store or shop, by using social media, your customers and friends can keep in touch with you as your business progresses. If you intend to create an internet-based business, your visibility is largely through social media. Either way, if you’re not using social media to attract and bond with new customers and create brand awareness, you’re leaving money and the possible survival of your business on the table.
Blogs, press releases and white papers
...are useful for generating awareness and traffic. Once set up, non-technical people can easily communicate the latest information in their field and discuss new products or services. Become an expert and communicate your knowledge. Blog posts can take the form of white papers and press releases, drawings, photographs, opinions and gossip. Knowing your target market, adjust information/entertainment ratios accordingly.
Press releases and white papers can be a way to reach out to general readers who will often link back to your site and refer others.
Blogposts are often more fully developed than other social media, which have a different function -to refer and attract.
Friends and followers
Twitter and Facebook are the current default starting points in a social media environment that is always in flux. The basic principal is to refer the reader to your website, your physical location, to learn more, to make loyal friends, to be shared, to join in your conversation and ultimately to make transactions.
Twitter is a sharing and referral medium writ small. To develop a following, follow others. Do searches for topics and interests as reflected in others’ twitter themes, then follow. Many of them will follow you back, and their followers are potentially yours too. Over weeks and months, watch it grow. Experiment with your twitter communiques.
Facebook starts with your existing friends and supporters and grows from there as they are willing to share what you’re saying and showing. Invite friends of friends at a judicious rate and build up a community.
LinkedIn is a good b2b site to share your business-related information through discussion groups and to look for alliances and clients, partners and employees.
Email Give your followers the opportunity to sign-up for newsletters and offers and news bulletins. Build this up and keep in touch.
Virtual doesn’t mean empty. Social media creates seemingly limitless levels of outreach. To use it successfully you’ll have to have a great answer to the question; outreach for what? Creating fans begins and ends with the great experiences and ideas that inspire people to move forward, or come back for more. If you’re not investing time in social media marketing, your business is an island, and no successful enterprise of the coming era -bait shops to governments- can be social media-isolated.
Funding RoadmapTM is an innovative, networked business planning and due diligence reporting system for funding professionals and entrepreneurs alike. It also includes a video pitching platform, a document repository and deal flow marketplace so entrepreneurs will have an online medium to brilliantly communicate all the essential data – along with their personal passion and commitment.
Ruth. E. Hedges is the creator and CEO of Fundingroadmap.com. and Startups Across America. She has been featured in the New York Times, on ABC’s Home Show, and the Financial News Network did a two-part series on her for their show entitled ‘American Entrepreneur’.
For more information please visit http://fundingroadmap.com and http://www.startupsacrossamerica.com/SAA/
Your website is the world’s window to your business. If you operate a local store or shop, by using social media, your customers and friends can keep in touch with you as your business progresses. If you intend to create an internet-based business, your visibility is largely through social media. Either way, if you’re not using social media to attract and bond with new customers and create brand awareness, you’re leaving money and the possible survival of your business on the table.
Blogs, press releases and white papers
...are useful for generating awareness and traffic. Once set up, non-technical people can easily communicate the latest information in their field and discuss new products or services. Become an expert and communicate your knowledge. Blog posts can take the form of white papers and press releases, drawings, photographs, opinions and gossip. Knowing your target market, adjust information/entertainment ratios accordingly.
Press releases and white papers can be a way to reach out to general readers who will often link back to your site and refer others.
Blogposts are often more fully developed than other social media, which have a different function -to refer and attract.
Friends and followers
Twitter and Facebook are the current default starting points in a social media environment that is always in flux. The basic principal is to refer the reader to your website, your physical location, to learn more, to make loyal friends, to be shared, to join in your conversation and ultimately to make transactions.
Twitter is a sharing and referral medium writ small. To develop a following, follow others. Do searches for topics and interests as reflected in others’ twitter themes, then follow. Many of them will follow you back, and their followers are potentially yours too. Over weeks and months, watch it grow. Experiment with your twitter communiques.
Facebook starts with your existing friends and supporters and grows from there as they are willing to share what you’re saying and showing. Invite friends of friends at a judicious rate and build up a community.
LinkedIn is a good b2b site to share your business-related information through discussion groups and to look for alliances and clients, partners and employees.
Email Give your followers the opportunity to sign-up for newsletters and offers and news bulletins. Build this up and keep in touch.
Virtual doesn’t mean empty. Social media creates seemingly limitless levels of outreach. To use it successfully you’ll have to have a great answer to the question; outreach for what? Creating fans begins and ends with the great experiences and ideas that inspire people to move forward, or come back for more. If you’re not investing time in social media marketing, your business is an island, and no successful enterprise of the coming era -bait shops to governments- can be social media-isolated.
Funding RoadmapTM is an innovative, networked business planning and due diligence reporting system for funding professionals and entrepreneurs alike. It also includes a video pitching platform, a document repository and deal flow marketplace so entrepreneurs will have an online medium to brilliantly communicate all the essential data – along with their personal passion and commitment. Ruth. E. Hedges is the creator and CEO of Fundingroadmap.com. and Startups Across America. She has been featured in the New York Times, on ABC’s Home Show, and the Financial News Network did a two-part series on her for their show entitled ‘American Entrepreneur’.
For more information please visit http://fundingroadmap.com and http://www.startupsacrossamerica.com/SAA/
Attract Gen Y Employees with a Great Office Space
To contact us Click HERE
They’re young, they’re talented, they’re tech-savvy, they’re green. Studies show that by creating an environmentally friendly office, you have a better chance of attracting talented members of Generation Y to your workforce.
According to a MonsterTRAK poll on green employment, 92 percent of young professionals interviewed said they would be more inclined to work for an environmentally-friendly company. The information was confirmed by a Johnson Controls large-scale research project in which more than 3,000 Gen Ys from the United States, the UK, Germany, China, and India were interviewed. Ninety-six percent said they want an "environmentally aware or friendly workplace" and 57 percent said they want their employers to perform well above regulatory compliance.
In short, the younger generations are driven digital innovators, but they want a workplace that is aligned to their core beliefs and is environmentally sensitive. Cubicles with high walls tend to cage their creativity, while flexible and team-focused designed office spaces with fewer barriers allow for the free flow of ideas and information.
In considering ways to attract and keep employees productive at your workplace, take note of the designs at hot tech companies such as Google and Facebook. Natural light pours through their wide open office spaces, group meeting places and thinking spots encourage ideas, and splashes of color satisfy this emotionally engaged generation. There is an emphasis on innovation. Gone are the days of the dusty cubicles and piles of yellowing paper.
In fact, the green movement in business has shifted from the peripheral to the mainstream, with the knowledge that younger employees are partial to working in greener office environments that feature more open space and natural lighting. To adhere to this increasing demand, more companies are lowering cubicle walls below 50 inches and using lower height furniture to improve air flow and access to natural light. This also helps the new employee by improving communication and helping them learn by listening and watching the practices of more experienced staff members and managers. Glass architectural walls, lighter colors, and surface treatments extend natural light—a known productivity and sales enhancer.
Using water based paints to add earth tones and designing with natural fabrics that don’t release noxious fumes (VOCs—Volatile Organic Compounds) can give the workplace a modern yet serene edge that Gen Ys find appealing.
Furniture choices for work stations and storage can play an important role in enhancing productivity. By maximizing the use of vertical space above desks and areas below desks for storage, desktops and other work area surfaces can be reclaimed and used more effectively. Workflow will improve when work areas are clutter-free and more accessible.
An employee’s chair, keyboard, monitor, and work station should be designed specifically for the individual by a professional who understands workplace ergonomics. When employees are comfortable, they will feel better, have more energy, will need to get up less frequently, are less likely to develop carpel tunnel syndrome, and they will be happier and more productive.
Younger employees tend to choose work environments that meet their needs and allow them to channel and tap into today’s technologies. They’re looking for innovative and cutting edge companies. Some furniture and equipment can transform an office into the modern environment without a huge financial commitment. Products such as lampstands that function as charging stations for cell phones or desks with built-in charging mats for mobile devices are becoming more common. Teknion, for example, offers a tangle-free cordless charging station that is greener because it only supplies power when needed which prolongs a device’s battery life.
Being tech-oriented, the younger generation is well informed about energy savings and the vampire effect, which happens when machines suck power while they are dormant. According to the Johnson Controls project, 53 percent of younger workers want stand-by devices on all electrical equipment. Knowing that printers are huge power-zappers, 72 percent want to share printers in the office, to reduce power consumption. Shared multifunction machines with printing, copying, scanning, and faxing capabilities create a natural “excuse” for exercise and communication. Employees are able to stretch their legs and touch base with each other on the way to and from the printing station.
The younger workforce thrives in an atmosphere that is conductive to teamwork. They spend more time collaborating in technology supported environments and less time working at independent workstations or offices. Creating smaller breakout areas for quick four-person meetings promotes discussion of new ideas. Transforming the corner office with the window view into a group meeting place can have a dramatic impact. Revitalizing and saving space can reduce costs for employers, motivate people, and boost productivity. A combination of changes can result in lower overhead and improved profitability.
Allowing information to flow freely is an easy way of encouraging productivity. According to book The 2020 Workplace, companies will need to encourage social interactions and connections among employees in a way that extends past the office and into global communities. These same employees will give dimension to your brand and if they experience a pleasant work environment, others will hear about it.
Republished by permission, FreeEnterprise.com, in agreement with NY Enterprise Report. Copyright© is owned by the author of this article. FreeEnterprise.com is your home for free market news and ideas. Mark Damico is the founder and president of The Workplace Group, a growing commercial furniture and office design company located in Hauppauge, Long Island. For more information visit www.theworkplacegroup.com.
According to a MonsterTRAK poll on green employment, 92 percent of young professionals interviewed said they would be more inclined to work for an environmentally-friendly company. The information was confirmed by a Johnson Controls large-scale research project in which more than 3,000 Gen Ys from the United States, the UK, Germany, China, and India were interviewed. Ninety-six percent said they want an "environmentally aware or friendly workplace" and 57 percent said they want their employers to perform well above regulatory compliance.
In short, the younger generations are driven digital innovators, but they want a workplace that is aligned to their core beliefs and is environmentally sensitive. Cubicles with high walls tend to cage their creativity, while flexible and team-focused designed office spaces with fewer barriers allow for the free flow of ideas and information.
In considering ways to attract and keep employees productive at your workplace, take note of the designs at hot tech companies such as Google and Facebook. Natural light pours through their wide open office spaces, group meeting places and thinking spots encourage ideas, and splashes of color satisfy this emotionally engaged generation. There is an emphasis on innovation. Gone are the days of the dusty cubicles and piles of yellowing paper.
In fact, the green movement in business has shifted from the peripheral to the mainstream, with the knowledge that younger employees are partial to working in greener office environments that feature more open space and natural lighting. To adhere to this increasing demand, more companies are lowering cubicle walls below 50 inches and using lower height furniture to improve air flow and access to natural light. This also helps the new employee by improving communication and helping them learn by listening and watching the practices of more experienced staff members and managers. Glass architectural walls, lighter colors, and surface treatments extend natural light—a known productivity and sales enhancer.
Using water based paints to add earth tones and designing with natural fabrics that don’t release noxious fumes (VOCs—Volatile Organic Compounds) can give the workplace a modern yet serene edge that Gen Ys find appealing.
Furniture choices for work stations and storage can play an important role in enhancing productivity. By maximizing the use of vertical space above desks and areas below desks for storage, desktops and other work area surfaces can be reclaimed and used more effectively. Workflow will improve when work areas are clutter-free and more accessible.
An employee’s chair, keyboard, monitor, and work station should be designed specifically for the individual by a professional who understands workplace ergonomics. When employees are comfortable, they will feel better, have more energy, will need to get up less frequently, are less likely to develop carpel tunnel syndrome, and they will be happier and more productive.
Younger employees tend to choose work environments that meet their needs and allow them to channel and tap into today’s technologies. They’re looking for innovative and cutting edge companies. Some furniture and equipment can transform an office into the modern environment without a huge financial commitment. Products such as lampstands that function as charging stations for cell phones or desks with built-in charging mats for mobile devices are becoming more common. Teknion, for example, offers a tangle-free cordless charging station that is greener because it only supplies power when needed which prolongs a device’s battery life.
Being tech-oriented, the younger generation is well informed about energy savings and the vampire effect, which happens when machines suck power while they are dormant. According to the Johnson Controls project, 53 percent of younger workers want stand-by devices on all electrical equipment. Knowing that printers are huge power-zappers, 72 percent want to share printers in the office, to reduce power consumption. Shared multifunction machines with printing, copying, scanning, and faxing capabilities create a natural “excuse” for exercise and communication. Employees are able to stretch their legs and touch base with each other on the way to and from the printing station.
The younger workforce thrives in an atmosphere that is conductive to teamwork. They spend more time collaborating in technology supported environments and less time working at independent workstations or offices. Creating smaller breakout areas for quick four-person meetings promotes discussion of new ideas. Transforming the corner office with the window view into a group meeting place can have a dramatic impact. Revitalizing and saving space can reduce costs for employers, motivate people, and boost productivity. A combination of changes can result in lower overhead and improved profitability.
Allowing information to flow freely is an easy way of encouraging productivity. According to book The 2020 Workplace, companies will need to encourage social interactions and connections among employees in a way that extends past the office and into global communities. These same employees will give dimension to your brand and if they experience a pleasant work environment, others will hear about it.
Republished by permission, FreeEnterprise.com, in agreement with NY Enterprise Report. Copyright© is owned by the author of this article. FreeEnterprise.com is your home for free market news and ideas. Mark Damico is the founder and president of The Workplace Group, a growing commercial furniture and office design company located in Hauppauge, Long Island. For more information visit www.theworkplacegroup.com.