Ever consider what one bad hire can cost your business?
A recent survey of 400-plus small-business owners found that poor hiring cost many of them upward of $10,000 per hire, according to Glenview, Ill.-based SurePayroll Inc., an online payroll provider.
That’s a lot to swallow for any small company, so if you’re thinking of rushing into your next hiring decision, think again, experts say.
“More often than not, hiring the wrong person is worse than hiring no person,” says Richard Fein, author of “101 Hiring Mistakes Employers Make … And How To Avoid Them” and director of undergraduate placement services at the Isenberg School of Management at the University of Massachusetts, Amherst. “In a company of 10 people, if one person is a lemon, that’s 10 percent of your workforce.”
Ready to escape the corporate world and work for yourself? America certainly tries to support its entrepreneurs, setting aside billions of dollars in federal contracts specifically for small businesses.
But securing your first financial boost is only one of your challenges. First you have to pick a business that can be realistically turned into a profitable operation. And if you pick one of these seven common businesses, you may struggle to see your dream come true, according to Yahoo!:
Why does management behavior often diverge from “broadly accepted” theory or best practice?
This question hit me over the head (once again) during a conversation with a talented, young CIO about a big project that was significantly late and over budget. Ask anyone experienced in the world of IT or change management, and they will tell you that the best way to pull off a big project is to break it up in to a series of small ones. Yet, this CIO decided to push forward with an approach that he knew was risky and likely to stumble and possibly fail. When I asked him why he pursued this course, he answered, “The other approach would have taken too much time.” Of course, the perception of “too much time” is relative and based upon others’ expectations. Right now, this CIO is taking “too much time” explaining to his board why he and his team are failing to deliver a better result.
Dear Dan: We’d like to offer health insurance at our small business, but the whole topic scares me. We’re uncertain what the choices are, what plan might be best, and what the costs might be. Can you help? – Unhealthy Insurance
Dear Unhealthy: As small businesses struggle over health insurance, a National Association of Insurance Commissioners (NAIC) survey finds that two out of three business owners feel clueless about health insurance choices and costs.
Dear Dan: I’m old-school when it comes to manners, and some of the behavior I see from my employees is disappointing. They are otherwise good workers, but is there a way to create my own standards? – Old School Manners
Dear Old School: There’s much to be said for harmony in the workplace. When employees get along – with customers and clients as well as each other – your business prospers. But people often do little things that you wish they wouldn’t, such as rough language, poor cell phone etiquette or over-the-top political arguments. Many business owners are reluctant to try and control such behavior when employee performance is otherwise good.
Government contracting is a great way for some companies to grow both jobs and revenues. One of the necessary components of federal government contracting is bonding.
SBA announced today that it can now provide surety bonds on federal contracts valued at up to $10 million if the contracting officer feels the bonding is in the best interest of the government. Currently the bond guarantee limit is $5 million.
Record numbers of small businesses surveyed for the latest NFIB Optimism Index reported a decline in earnings. Most (60 percent) say that’s a result of slower sales, while others blame lower selling prices. About 31 percent of small business owners say they are cutting prices, while only 13 percent have raised them. The cuts in average selling prices by small companies are happening at a record pace.
Conditions remain precarious for millions of business owners. Despite the impression that most businesses buckle under the weight of a single calamity, however, the path to ruin is often paved by a series of small missteps. We become blind to chains of mistakes that ultimately lead to disaster. Here are some moves that can help you avoid the kinds of missteps that by themselves aren’t life threatening, but taken together can sink a struggling business:
A troubling phenomenon is occurring in conjunction with the ongoing economic recession, financial stress. In addition to putting strains on a business, financial stress also has a negative impact on one’s physical and mental health. Coping with financial stress is a critical business skill. It is the key component that will carry you through these dark times. Here are some ideas to help you cope with financial stress during this recession.
Steer Clear of the Media
Newspapers, television, and magazines portray dark images and stories that are related to recession stress. These are constant reminders of the problems you and your company may be facing at this time. If you steer clear of the media, it will help ease your constant worries about financial stress. Replace time that you would normally spend watching the news or reading the paper with enriching activities, such as social networking or work-related research. Exercise is another meaningful activity that you can do to avoid unnecessary exposure to the media.
Dear Dan: The slow economy is taking a toll on our business. Things really feel stagnant here. What are some good eways to regain a little competitive energy that’s gone flat along with business overall? – Slumping
Dear Slumping: If sales are stalled and things seem stagnant at your business, this might be a good time to consider a fresh look at home you are operating in some key areas. This can be especially valuable if you’ve been in business a long time, in which case some of your methods may need a little freshening up.
The recession is viral and it has spread like wildfire. Few businesses have escaped the effects of the ongoing economic recession. The downturn has made it difficult to manage morale and take care of employee needs. Workplace motivation has plummeted, and things are only threatening to get worse. It is important to keep your team motivated during this recession. Here are six great tips for motivating your team in the face of adversity.
Honesty is the best policy when it comes to motivating your team. Employees will be questioning how their jobs and lives will be impacted by the recession. Don’t sugarcoat the information that you provide. Deliver clear messages and be honest about what is going on in your business.
