Tuesday, September 18, 2012

Read What Entrepreneurs Really Worry About


What Entrepreneurs Really Worry About

A recent survey found small business owners believe taxes and health care are the most important issues.
Obama and Romney Don't Know
 
What's the most important campaign issue to small business owners? Well, it's notMitt Romney's "47%" comment, that's for sure. 
The economy and jobs is--by far--the most important issue for entrepreneurs in the upcoming presidential election, according to a recent survey conducted by Thumbtack.com, an online platform used to find local service providers. The company teamed up with with the George Washington University Graduate School of Political Management to surveymore than 6,000 small business owners from across the country. 
The survey also found that more small business owners believe Barack Obama is more supportive of small business than Mitt Romney.
When asked, "What is the single most important issue in your choice for president?" 40% of respondents said "economy/jobs." "Ethics/honesty/corruption in government" was the second most popular answer with 13% of small business owners saying it was paramount in selecting a candidate.
More respondents (39%) said Obama was more supportive of small business with 31% choosing Romney. But it seems the small business owner vote is still very much up for grabs, as 28% saying they weren't sure who was the better small business candidate.
The survey also explored the specific economic issues most important to entrepreneurs. More than a quarter (26%) said unemployment and the job market was the biggest economic issue this election season, with 16% saying it was the federal budget deficit and 10% saying its health care costs.
Small business owners rated gas and fuel as the most burdensome cost on their businesses, with self-employment, personal income taxes, and health care costs ranking second through fourth. Minimum wages costs was ranked as the least burdensome aspect of a business.
The survey was administered from July 27 to August 22. Survey respondents were predominantly male--62.3% to 37.6%--but this reflects the 64.1% male, 35.9% female gender composition of American business owners as reported by the U.S. Census Bureau.

Monday, August 13, 2012

Read The 3 Interview Questions That Reveal Everything About You


3 Interview Questions That Reveal Everything

Employee fit is crucial. Here's a simple way to know if a job candidate is right for your business.
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Interviewing job candidates is tough, especially because some candidates are a lot better at interviewing than they are at working.
To get the core info you need about the candidates you interview, here's a simple but incredibly effective interview technique I learned from John Younger, the CEO ofAccolo, a cloud recruiting solutions provider. (If you think you've conducted a lot of interviews, think again: Younger has interviewed thousands of people.)
Here's how it works. Just start from the beginning of the candidate's work history and work your way through each subsequent job. Move quickly, and don't ask for detail. And don't ask follow-up questions, at least not yet.
Go through each job and ask the same three questions:
1. How did you find out about the job?
2. What did you like about the job before you started?
3. Why did you leave?
"What's amazing," Younger says, "is that after a few minutes, you will always have learned something about the candidate--whether positive or negative--that you would never have learned otherwise."
Here's why:
How did you find out about the job?
Job boards, general postings, online listings, job fairs--most people find their first few jobs that way, so that's certainly not a red flag.
But a candidate who continues to find each successive job from general postings probably hasn't figured out what he or she wants to do--and where he or she would like to do it.
He or she is just looking for a job; often, any job.
And that probably means he or she isn't particularly eager to work for you. He or she just wants a job. Yours will do--until something else comes along.
"Plus, by the time you get to Job Three, Four, or Five in your career, and you haven't been pulled into a job by someone you previously worked for, that's a red flag," Younger says. "That shows you didn't build relationships, develop trust, and show a level of competence that made someone go out of their way to bring you into their organization."
On the flip side, being pulled in is like a great reference--without the letter.
What did you like about the job before you started?
In time, interviewees should describe the reason they took a particular job for more specific reasons than "great opportunity," "chance to learn about the industry," or "next step in my career."
Great employees don't work hard because of lofty titles or huge salaries. They work hard because they appreciate their work environment and enjoy what they do. (Titles and salary are just icing on the fulfillment cake.)
That means they know the kind of environment they will thrive in, and they know the type of work that motivates and challenges them--and not only can they describe it, they actively seek it.
Why did you leave?
Sometimes people leave for a better opportunity. Sometimes they leave for more money.
Often, though, they leave because an employer is too demanding. Or the employee doesn't get along with his or her boss. Or the employee doesn't get along with co-workers.
When that is the case, don't be judgmental. Resist the temptation to ask for detail. Hang on to follow-ups. Stick to the rhythm of the three questions. That makes it natural for candidates to be more open and candid.
In the process, many candidates will describe issues with management or disagreements with other employees or with taking responsibility--issues they otherwise would not have shared.
Then follow up on patterns that concern you.
"It's a quick way to get to get to the heart of a candidate's sense of teamwork and responsibility," Younger says. "Some people never take ownership and always see problems as someone else's problem. And some candidates have consistently had problems with their bosses--which means they'll also have issues with you."
And a bonus question:
How many people have you hired, and where did you find them?
Say you're interviewing candidates for a leadership position. Want to know how their direct reports feel about them?
Don't look only for candidates who were brought into an organization by someone else; look for candidates who brought employees into their organization.
"Great employees go out of their way to work with great leaders," Younger says. "If you're tough but fair, and you treat people well, they will go out of their way to work with you. The fact that employees changed jobs just so they could work for you speaks volumes to your leadership and people skills."

Tuesday, July 17, 2012

How to be Great


5 Ways to Beat Mediocrity

It's easy to rest on success. But so often that can turn a great company into an average company.
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The Olympics are probably the greatest recurring example of superhuman effort compressed into a single point in time: A lifetime's practice comes down to a single 100-meter dash; four years of training pays off (or doesn't) in one passed baton in the final leg of the relay; nanoseconds, or fractions of an inch, separate elation and despair. 
Running a business can become the exact opposite--no single point of payoff, no clear winner or loser at a particular point in time, no podium, no gold medal. There's just the long, arduous slog of doing the same things, day in, day out.
And it's in that sameness, in that cradle of monotony, that mediocrity is born. 
If you are left unchallenged, you perform...adequately. Appropriately. You do what is right. You do what is enough. You excel intermittently, fail occasionally, but mostly, you just get by. Who's to say what difference this sales report will make in the long run? Where's the payoff in stacking this inventory correctly? Why exactly should I be excited about this week's management meeting?
But some businesses do operate like an Olympic team. 
These companies hone and polish their business model, reshape and retool their decision-making processes, and practice their trade relentlessly, until they have it down, perfectly--or as near to perfect as they can get it. These companies work unceasingly at their product and service offerings, acutely conscious that they have to outperform the competitors. These businesses race to a goal as if their lives depended on it. Then race to another goal. Then another.
Think of Apple--who's to say its product announcements lack any of the drama or grandeur of ascending an Olympic podium (and who's to say the subsequent revenue isn't the equivalent of winning business gold)? Or take the Virgin Group, or Berkshire Hathaway. While competitors plow through each mundane day, these and many other companies race each day as if it's their last with passion and commitment.
So how do you make your team Olympics-worthy? 
1. Set BHAGs
Jim Collins and Jerry Porras's concept of the Big Hairy Audacious Goal has fallen out of favor in recent years--except with gold-medal winners. Look at any of the companies in the list above, and their audacious goals stare right back at you. What are yours?
2. Achieve
Huh? Isn't that like saying "breathe"? Well, no. 
I've worked with many companies (the majority, in fact) that set goal after goal after goal, as if goal setting is what will get them the gold. It won't. Achieving those goals is what gets the gold. Start with a goal you can achieve. Achieve it. Then another. Then another. Then achieve your BHAG. Then another BHAG. And another. Build a solid record of achievement. Very few nonachievers turn up at the Olympics and then suddenly win. They arrive at the Olympics with a track record of achievement.
3. Celebrate people
There's a reason that sales goals alone don't bring the gold medal: In the end, they're just numbers. Sure, sales goals are important (you won't get far without them), but people aren't motivated to go for gold by just numbers. They're motivated, frankly, by what's in it for them--ego, power, fun, passion, fulfillment--the exact same things that motivate you.
On the way to achieving your goals--small and large--make sure that your people are the centerpiece of celebration, not the numbers. It's your people who will win the gold for you, after all, not your balance sheet. 
4. Teach, coach, mentor
Business is a team sport--you don't get the gold by excelling individually. Communicating your goals is one thing; inspiring your people to rise to those goals is another. But trading your time and energy to be a resource to your team members--mentoring them, coaching them, teaching them what you know and they don't--that's how you build not just a winning team but also one that can compete at Olympic level.
5. Get out of the way
If you diligently apply the four principles above, at some point your team members will begin to push you. You will feel it--their intuition about what works and what doesn't becomes more finely honed than yours. Their ideas are faster, better, easier to implement than yours. Their knowledge of your product, of your customers, of your systems is deeper, richer than yours.  
That's when you know you have an Olympics-level team--one that can win. Your job is to get out of the way and let it.
Will you go for the gold? Or is today just another day?

Friday, July 13, 2012

Read How The Richest Americans Go So Rich


How the Richest 400 People in America Got So Rich

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In 1992, the 400th richest person in America made $24 million.
In 2007, the 400th richest person in America made $138 million (or $87 million, inflation-adjusted).
Now, that almost certainly wasn't the same guy. There's a lot of churn at the top of the money pyramid. In all of the 1990s, only 25% of the Fortunate 400 made more than one appearance. But the overall message is the same. The rich keep getting richer.
According to the IRS, which recently released 2009 data from the 400 richest individual income tax returns, the real runaway growth in wealth has come from capital gains. In the last years of the bubble, the "Fortunate 400" made nearly half their income from capital gains (a.k.a.: profit from the rising value of an investment, such as stocks or property) and less than 10% of their income from old-fashioned wages.
The average income of a top-400 earner grew by 650% between 1992 and 2007 to a whopping $344 million. Over that time, the average salary didn't even double. But the average capital gains haul increased by 1,200%. So how do the richest get richer? Not from their wages. From their investments.
Here's a look at the average salary and average capital gains income of a top-400 earner since 1992. Y-axis is labeled in thousands of dollars and all-time highs are noted in the graph.
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Three last things:
(1) Who are these people? As Tim Noah explained on our business page, a 2010 study studied the top 0.1 percent, who currently make at least $1.7 million. That's 14-times less than our Fortunate 400 group, but it's the closest we've got. Four in ten in this group were executives, managers, and supervisors at nonfinancial firms. Eighteen percent were financiers. Next came law (7 percent), medicine (6 percent), and real estate (4 percent). My guess is that the top 400 skews toward finance and chief exec even stronger. A lawyer/doctor making $2 million I can imagine. But $24 million?
(2) Capital gains absolutely dictate the wealth of the richest Americans. As Matt O'Brien graphed for us, that's why the income of the top 0.1 percent hugs the S&P so closely.
(3) Remember that as this is happening, the long-term capital gains tax rate has fallen from 28 percent in 1990 to 20 percent for the latter half of the 1990s to 15 percent under George W. Bush.
Financially Fit Reveals 5 Secret Habits of Wealthy Americans:

Wednesday, July 11, 2012

3 Simple Ways to Make People Happy at Work


3 Simple Ways to Make People Happy at Work

Learn these strategies to make your employees happy, and extravagantly execute them. You'll create a better business.
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Most CEOs know that, if their workers are happy, they're also more productive. But how to make them happy is the challenge. Many take the goal too personally and try to build staff contentment through personal relationships. They get exhausted and find the strategy simply won't scale.
So what can you realistically pull off to make people happy at work?
Professional growth
People want to stretch, to develop their natural talents, feel their life has a narrative and is going somewhere. When they feel that they are growing, they may be exhausted but they're also inspired, energetic, and willing to take on a great deal. (That's one reason why investing in people can deliver a higher return that investing in new technology.) Anyone who reports to you (and anyone who reports to them) should have a professional development plan. That will keep everybody engaged, busy, and--eventually--happy.
Strong community
Everybody wants to be proud of where they work, to feel that they are investing the most precious thing they have--time--in something that matters. For some companies, the mission or the products are enough. If you make things that cure disease, create cleaner air, save carbon emissions, or improve life in any way, your business has an intrinsic sense of purpose which is probably what drew people to it in the first place. If you make ball bearings, knowledge-management software, light switches, or other kinds of widgets, you may find it tougher to demonstrate how you make the world a better place. Superficial social-responsibility projects won't fill this gap for you. You need to create direct links between the success of the business and the community you serve. These need to involve the entire work force and should be active, public, visible, and long lasting. Many companies get their staff to choose the causes or charities they support. The more they're engaged in these commitments, the more meaningful they will be to them--and your company community.
Fair treatment
"Everybody here is somebody." That's how one call-center rep once explained to me why he loved the company where he worked. The job wasn't thrilling, the pay wasn't great, but every single person was treated with love and respect. Just walking through the door, he said, made you glad to come to work. When people got sick, co-workers worried. When someone was due to retire, she most likely came back to work part time, just for the camaraderie. Sooner or later, everyone in a company like this talks about it as being like "family." The CEO knows everyone's name--even the names of everyone's kids and pets. This kind of fair--and kind--treatment also means startlingly low turnover rates, which also saves money. But it's not really about the money.
The very best companies I've studied and written about honor these principles and enact them lavishly. They don't pay lip service, and they don't do the bare minimum; they go overboard. Their CEOs do so because they know the secret of leadership: Look after the people, and the people look after the business.

Thursday, July 5, 2012

If you own your own business today, then you must read this


Top 3 Bonehead Moves Entrepreneurs Make

No one said starting a business would be easy. But don't make it harder on yourself with these dumb mistakes.
The 8 most common start-up mistakes
 
No one said starting a new business would be easy--in fact it's pretty tough. But many entrepreneurs make it much harder than it needs to be with dumb mistakes that can quickly kill their businesses. So says Victor Green, author of How to Succeed in Business by Really Trying, and a serial entrepreneur who's launched several successful companies, and has spent the past 15 years consulting with other entrepreneurs.
Here are the biggest blunders:
1. Skimping on research.
"The most important mistake people make is they fail to research their ideas sufficiently. They talk to their mother, and their father, and their friends, and all these people say, 'You're so smart!' Unfortunately, these people won't be your customers."
The only way to find out if an idea will actually work is to test it in the actual marketplace, Green says. "And once you've researched it, get a much wider look at how the industry will progress. You may have something that's a good idea on day one, but will it continue to be a good idea over time?"
2. Focusing on revenues rather than profits.
If your main concern is revenues and how they're growing, you're missing the most important part of the picture, Green says. "So many people are driven by that sales figure. They'll say, 'I did ten million in sales last month.' I say, 'How much did you earn?' They say, 'We're sort of breaking even.' Then what are you running a business for? I call that vanity vs. sanity!"
Of course, Green concedes, most start-ups aren't profitable right away. "It may take you five years to make a profit. But the purpose of a business is to make a profit, and you have to be honest with yourself about whether you can do that."
3. Never giving up.
It's the moral of a thousand Hollywood movies: Never lose heart! Don't quit when the going gets tough! But this attitude leads to trouble in the business world, Green says.
"People drive themselves to keep up an appearance because their egos get so inflated," Green says. "Will you say, 'I've been killing myself for two years, I've got $2 million invested, and I'm going to carry on no matter what.' Or will you be sensible enough to say, 'I'm a grownup. I'm going to shut this business down, it won't affect me, and I'll start again."
Being willing to pull the plug on your own creation is the test of a true entrepreneur, he adds. "I always congratulate people who tell me, 'I'm going to pull the plug--it's not working.' Every person in business will have a failure during their life, and if they say they don't I can only think that they have a very poor memory. Do you do most things right? If you get things right 51% of the time, you're ahead of the game."